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 FEE, AND OTHER COSTS. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
TXCM3 6/95
- --------------------------------------------------------------------------------
MID-YEAR REPORT
- --------------------------------------------------------------------------------
SELIGMAN
CASH
MANAGEMENT
FUND, INC.
- --------------------------------------------------------------------------------
JUNE 30, 1996
[LOGO]
- --------------------------------------------------------------------------------
A MONEY MARKET FUND
ESTABLISHED IN 1976
<PAGE>
================================================================================
TO THE SHAREHOLDERS
- --------------------------------------------------------------------------------
Seligman Cash Management Fund continued to invest in the highest quality money
market instruments in order to provide its Shareholders with competitive yields.
The Fund's yield did decline early in 1996 after the Federal Reserve Board
lowered short-term interest rates; however, it rose gradually throughout the
second quarter and ended the period on a more positive note.
In the first half of 1996, the Fed's continuing efforts to achieve a "soft
landing" -- a healthy moderation of economic growth that does not slip into
recession -- appeared to have come to fruition. In the short-term securities
market, yields declined with the Fed's lowering of short-term interest rates in
February of 1996. In March, short-term rates began a slight ascent and continued
to rise moderately throughout the second quarter as participants anticipated a
Fed adjustment. The fed funds rate -- the interest rate charged for interbank
loans -- ended the second quarter of 1996 at 5.25%, down from 5.50% at December
31, 1995. The yield on the benchmark three-month Treasury bill began the year at
5.08% and increased to 5.16% by June 30.
Economic data for the second quarter of 1996 indicated continued growth in
output, employment, and incomes. More than half the early corporate earnings
reports reflected the positive effects of the strong economy, and earnings
estimates rose to higher levels. Inflation remained low and, more important,
commodity price indices declined from their recent eight-year highs, which
suggested that future inflationary pressures were in check. Overall, the economy
seemed quite healthy at the end of the second quarter.
While viewpoints differ over the likely direction of the fixed-income markets
and the economy over the next year, we believe that the longer-term outlook
remains sound.
For a discussion with your Portfolio Manager about the last six months,
please refer to page 2.
By order of the Board of Directors,
/S/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
July 31, 1996
1
<PAGE>
================================================================================
INTERVIEW WITH YOUR PORTFOLIO MANAGER
- --------------------------------------------------------------------------------
LEONARD J. LOVITO
WHAT ECONOMIC FACTORS INFLUENCED SELIGMAN CASH MANAGEMENT FUND IN THE PAST SIX
MONTHS?
In February 1996, the Federal Reserve Board continued to lower short-term
interest rates to counter the economic slowdown that took hold at the end of
1995. As with any Fed adjustment to short-term interest rates, such as the fed
funds or the discount rates, the impact on money market rates was felt
immediately. In conjunction with the lowering of short-term interest rates, and
the money market's subsequent decline, Seligman Cash Management Fund's yield
continued to decline early into 1996.
February, however, marked the last reduction of short-term rates as the
economy's growth began to pick up. Short-term money market rates therefore rose
slightly throughout the second quarter with news of stronger-than-expected
economic growth. Anticipating a possible increase in short-term interest rates,
money market rates hit a high in June, ending the second quarter on a more
positive note. In the last two days of the quarter, however, the three-month
Treasury bill's yield came down from its June peak of 5.28% to close the month
at 5.16%, up from the second quarter low of 4.96%.
HOW DID YOU RESPOND?
Once the Fed lowered short-term interest rates in February, we extended the
maturity of the Fund to lock in longer-term money market rates. We did this in
an effort to position the Fund so it would benefit from further cuts in rates.
However, in March, as the economy improved and the likelihood of a continued Fed
easing of monetary policy disappeared, we became more neutral, no longer
purchasing longer-term instruments. The Fund's yield, therefore, began to rise
in concert with money market rates. We remained neutral throughout the second
quarter, and awaited the Fed's reaction to further economic reports. While
short-term rates moved slightly higher from April to June, your Fund's yield
remained relatively stable. Overall, we maintained the Fund's maturity in a
35-40 day range throughout the second quarter, down from the 45 day maturity in
the first quarter of 1996.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our strategy and the Fund's performance continue to depend on both the market's
and the Fed's interpretations of economic activity. If the economy continues its
robust growth to the point where inflation is rekindled, the Fed may raise
short-term interest rates, which will increase the yield of the Fund. If the
economy slows and inflation remains tame, the Fed could adjust short-term
interest rates down, and the Fund's yield will follow accordingly. Currently,
the first scenario seems more likely. Money market rates are modestly
increasing, responding to the ongoing signs of economic growth and the
likelihood that the Fed will have to raise short-term rates later this year. If
this atmosphere continues, Seligman Cash Management Fund, along with most money
market investors, should benefit.
2
<PAGE>
================================================================================
SELIGMAN CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
A money market mutual fund that seeks to
preserve capital and to maximize liquidity
and current income by investing in high-quality
money market instruments.
<TABLE>
<CAPTION>
HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 1996
- -------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS D
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets........................................ $182,755,920 $319,289 $10,603,749
- -------------------------------------------------------------------------------------------------
Net Asset Value per Share......................... $1.00 $1.00 $1.00
Number of Shareholders............................ 10,863 26 807
- -------------------------------------------------------------------------------------------------
Dividends......................................... $.023 $.007* $.018
- -------------------------------------------------------------------------------------------------
Annualized Net Yield per Share.................... 4.61% 3.58%* 3.60%
Annualized Effective Yield per Share with
Dividends Invested Monthly..................... 4.71% 3.64%* 3.66%
- -------------------------------------------------------------------------------------------------
</TABLE>
*From April 22, 1996.
Investments in the Fund are neither insured nor guaranteed by the US Government
and there is no assurance that the Fund will be able to maintain a stable net
asset value of $1.00 per share.
3
<PAGE>
<TABLE>
<CAPTION>
======================================================================================================================
PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- ----------------------------------------------------------------------------------------------------------------------
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ------ -----
<S> <C> <C> <C>
COMMERCIAL PAPER 77.5%
AUTOMOTIVE 5.2%
Ford Motor Credit Corp., 9/25/96............................. 5.46% $10,200,000 $ 10,068,664
------------
BANKING 15.4%
CoreStates Financial Corp., 7/1/96........................... 5.29 10,200,000 10,200,000
J.P. Morgan & Co., 7/17/96................................... 5.33 9,500,000 9,477,791
Norwest Financial Corp., 8/30/96............................. 5.33 10,300,000 10,209,703
------------
29,887,494
------------
CAPITAL EQUIPMENT 10.6%
General Electric Capital Corp., 7/10/96...................... 5.32 10,000,000 9,986,875
John Deere Capital Corp., 8/15/96............................ 5.37 10,700,000 10,629,113
------------
20,615,988
------------
CONSUMER PRODUCTS 5.4%
Clorox Company, 9/30/96...................................... 5.43 10,600,000 10,456,382
------------
FINANCE 20.7%
American Express Credit Corp., 8/7/96........................ 5.36 10,300,000 10,243,999
American General Finance Corp., 8/12/96...................... 5.34 9,700,000 9,640,361
Associates Corp. of North America, 8/26/96................... 5.34 10,000,000 9,918,022
Beneficial Corp., 8/30/96.................................... 5.33 10,300,000 10,209,703
------------
40,012,085
------------
MACHINERY 5.2%
Illinois Tool Works, 8/20/96................................. 5.43 10,200,000 10,124,067
------------
COMMERCIAL SERVICES 5.0%
Pitney Bowes Credit Corp., 7/22/96........................... 5.33 9,700,000 9,670,237
------------
TELECOMMUNICATIONS 10.0%
Ameritech Corp., 8/29/96..................................... 5.33 9,700,000 9,616,381
BellSouth Telecommunications, 7/30/96........................ 5.32 9,700,000 9,658,977
------------
19,275,358
------------
TOTAL COMMERCIAL PAPER (Cost $150,110,275)................... 150,110,275
------------
FIXED TIME DEPOSITS 12.4%
Bank of Nova Scotia, Grand Cayman, 7/1/96.................... 5.58 9,700,000 9,700,000
Canadian Imperial Bank of Commerce, Grand Cayman, 7/1/96..... 5.58 9,700,000 9,700,000
First National Bank of Chicago, Grand Cayman, 7/1/96......... 5.58 4,500,000 4,500,000
-------------
TOTAL FIXED TIME DEPOSITS (Cost $23,900,000)................. 23,900,000
------------
CERTIFICATES OF DEPOSIT 5.4% (Cost $10,500,000)
Harris Trust & Savings, Chicago, 9/17/96..................... 5.49 10,500,000 10,500,000
------------
BANK NOTES 5.0% (Cost $9,700,640)
First Chicago NBD Bancorp, Detroit, 9/3/96................... 5.45 9,700,000 9,700,640
------------
TOTAL INVESTMENTS 100.3% (Cost $194,210,915)................ 194,210,915
OTHER ASSETS LESS LIABILITIES (0.3)% ....................... (531,957)
------------
NET ASSETS 100.0% .......................................... $193,678,958
============
</TABLE>
- -----------------
See notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996
- -------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value:
Commercial paper (cost $150,110,275)................ $150,110,275
Fixed time deposits (cost $23,900,000).............. 23,900,000
Certificates of deposit (cost $10,500,000).......... 10,500,000
Bank notes (cost $9,700,640)........................ 9,700,640 $194,210,915
------------
Cash............................................................ 143,913
Receivable for Capital Stock sold............................... 515,135
Interest receivable............................................. 74,827
Investment in, and expenses prepaid to,
Shareholder service agent ................................... 36,556
Other........................................................... 103,060
------------
TOTAL ASSETS .................................................. 195,084,406
------------
LIABILITIES:
Payable for Capital Stock redeemed.............................. 1,037,848
Accrued expenses, taxes, and other.............................. 367,600
------------
TOTAL LIABILITIES .............................................. 1,405,448
------------
NET ASSETS ..................................................... $193,678,958
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.01 par value;
2,000,000,000 shares authorized;
193,683,585 shares outstanding):
Class A...................................................... $ 1,827,605
Class B...................................................... 3,193
Class D...................................................... 106,038
Additional paid-in capital...................................... 191,746,749
Accumulated net realized loss................................... (4,627)
------------
NET ASSETS:
Applicable to 182,760,547 Class A shares,
319,289 Class B shares, and 10,603,749
Class D shares, equivalent to $1.00 per share ................ $193,678,958
============
</TABLE>
- -----------------
See notes to financial statements.
5
<PAGE>
================================================================================
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest........................................................ $5,296,264
----------
EXPENSES:
Management fee.................................................. 403,956
Shareholder account services.................................... 234,275
Distribution and service fees................................... 57,865
Registration.................................................... 41,436
Shareholder reports and communications.......................... 23,988
Auditing and legal fees......................................... 22,177
Custodian services.............................................. 21,446
Directors' fees and expenses.................................... 14,768
Miscellaneous................................................... 10,473
----------
Total expenses.................................................. 830,384
----------
NET INVESTMENT INCOME AND INCREASE IN NET ASSETS
FROM OPERATIONS .......................... $4,465,880
==========
- ----------------------
See notes to financial statements.
6
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Increase in net assets from operations-- net investment income ..... $ 4,465,880 $ 9,637,468
------------ ------------
Decrease in net assets from distributions -- net investment
income paid to shareholders as dividends:
Class A ......................................................... (4,258,881) (9,215,896)
Class B ......................................................... (1,045) --
Class D ......................................................... (205,954) (421,572)
------------ ------------
Total .............................................................. (4,465,880) (9,637,468)
------------ ------------
CAPITAL SHARE TRANSACTIONS:* Proceeds from sale of shares:
Class A ......................................................... 151,705,318 303,480,822
Class B ......................................................... 313,175 --
Class D ......................................................... 2,226,229 --
Net proceeds from transfer of Government Portfolio -- Class A -- 21,971,609
Net asset value of shares issued in payment of dividends:
Class A ......................................................... 3,821,180 8,011,199
Class B ......................................................... 779 --
Class D ......................................................... 159,536 328,806
Exchanged from associated Funds:
Class A ......................................................... 412,329,081 361,106,751
Class B ......................................................... 235,446 --
Class D ......................................................... 39,152,944 80,746,637
------------ ------------
Total .............................................................. 609,943,688 775,645,824
------------ ------------
Cost of shares redeemed:
Class A ......................................................... (161,964,862) (360,478,471)
Class D ......................................................... (6,847,484) (9,346,161)
Exchanged into associated Funds:
Class A ......................................................... (400,529,447) (351,102,803)
Class B ......................................................... (230,111) --
Class D ......................................................... (38,642,113) (60,632,635)
------------ ------------
Total .............................................................. (608,214,017) (781,560,070)
------------ ------------
Increase (decrease) in net assets from capital share transactions .. 1,729,671 (5,914,246)
------------ ------------
Increase (decrease) in net assets .................................. 1,729,671 (5,914,246)
NET ASSETS:
Beginning of period ................................................ 191,949,287 197,863,533
------------ ------------
End of period ...................................................... $193,678,958 $191,949,287
============ ============
</TABLE>
- -------------------
*The Fund began offering Class B shares on April 22, 1996.
See notes to financial statements.
7
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Cash Management Fund, Inc. (the "Fund") offers three classes of
shares: Class A shares, Class B 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, were classified as Class A shares. The Fund began offering Class B shares
on April 22, 1996. Class B shares are subject to a distribution fee of up to
0.75% and a service fee of up to 0.25% on an annual basis, and a contingent
deferred sales load ("CDSL"), if applicable, of 5% on redemptions in the first
year after purchase, declining to 1% in the sixth year and 0% thereafter. Class
B shares will automatically convert to Class A shares on the last day of the
month that precedes the eighth anniversary of their date of purchase. Class D
shares are subject to a distribution fee of up to 0.75% and a service fee of up
to 0.25% on an annual basis, and a CDSL of 1% imposed on certain redemptions
made within one year of purchase. The three 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 other 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 value of shares of each class. Class-specific
expenses, which include distribution and service fees and any other items
that are specifically attributed to a particular class, are charged directly
to such class. For the six months ended June 30, 1996, distribution and
service fees were the only class-specific expenses.
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. The Manager
receives a fee, calculated daily and paid monthly, equal to a per annum
percentage of the Fund's average daily net assets.
8
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
The management fee rate 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 six months ended June 30, 1996, was
equivalent to an annual rate of 0.41% of the average daily net assets of the
Fund.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares 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 average daily net assets of Class A shares, 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 during the six months
ended June 30, 1996.
The Fund has a Plan with respect to Class B and 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 B and Class D shares for which the organizations are
responsible; and, for Class D shares only, 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 Fund to the Distributor pursuant to the Plan.
With respect to Class B shares, a distribution fee of up to 0.75% on an
annual basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to substantially all
of this fee to a third party (the "Purchaser") which provided funding to the
Distributor to enable it to pay commissions to dealers at the time of the sale
of the related Class B shares.
For the six months ended June 30, 1996, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B and Class
D shares, amounted to $290 and $57,575, respectively.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares. For the six months ended June 30, 1996, such
charges amounted to $37,532.
The Distributor has sold its rights to collect any CDSL imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSL and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amount of such payments
and the Class B shares distribution fees retained by the Distributor for the
period ended June 30, 1996, amounted to $130.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
distribution and service fees pursuant to the Plan. For the six months ended
June 30, 1996, Seligman Services, Inc. received distribution and service fees of
$2,675, pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $234,275 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, Seligman Services, Inc., and/or Seligman Data
Corp.
Fees of $10,000 were incurred by the Fund 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 cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1996, of $135,717, is
included in other liabilities. Deferred fees and related accrued interest are
not deductible for federal income tax purposes until such amounts are paid.
9
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
4. At December 31, 1995, the Fund had a net loss carryforward of $4,627, which
is available for offset against future taxable net gains, expiring in 1999.
5. On January 17, 1995, shareholders of the Fund's Government Portfolio approved
a transfer of its net assets to the Fund's 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 is no longer designated as such.
Immediately before the transfer of net assets, the Condensed Financial
Statements of the Government Portfolio were as follows:
CONDENSED STATEMENT OF NET ASSETS
JANUARY 26, 1995
Total assets ............................. $22,005,452
Total liabilities ........................ 33,843
-----------
Net assets ............................... $21,971,609
===========
Shares of Capital Stock outstanding ...... 21,971,609
Net asset value per share ................ $1.000
CONDENSED STATEMENT OF OPERATIONS --
JANUARY 1, 1995, TO
JANUARY 26, 1995
Net investment income and increase
in net assets from operations ......... $ 71,496
===========
CONDENSED STATEMENT OF CHANGES
IN NET ASSETS -- JANUARY 1, 1995,
TO JANUARY 26, 1995
Net investment income and increase
in net assets from operations ......... $ 71,496
Decrease in net assets from
distributions ......................... (71,496)
Decrease in net assets from capital
share transactions .................... (64,014)
-----------
Net decrease in net assets ............... (64,014)
Net Assets:
Beginning of period .................... 22,035,623
-----------
End of period .......................... $21,971,609
===========
CONDENSED FINANCIAL HIGHLIGHTS --
JANUARY 1, 1995, TO
JANUARY 26, 1995
Net asset value, beginning of period ..... $ 1.000
Net investment income .................... 0.003
Dividends paid ........................... (0.003)
-----------
Net asset value, end of period ........... $ 1.000
===========
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 amounts.
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>
CLASS A CLASS B CLASS D
------------------------------------------------------- -------- ---------------------------------
SIX SIX YEAR ENDED
MONTHS YEAR ENDED DECEMBER 31, 4/22/96* MONTHS DECEMBER 31, 5/3/93**
ENDED ------------------------------------------ TO ENDED ------------ TO
6/30/96 1995 1994 1993 1992 1991 6/30/96 6/30/96 1995 1994 12/31/93
-------- ---- ---- ---- ---- ---- ------- ------- ---- ---- --------
<S> <C> <C> <C> <C> <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 $1.000 $1.000 $1.000 $1.000
Net investment income......... .023 .051 .034 .024 .030 .053 .007 .018 .040 .024 .003
Dividends paid or declared.... (.023) (.051) (.034) (.024) (.030) (.053) (.007) (.018) (.040) (.024) (.003)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED
ON NET ASSET VALUE: 2.34% 5.18% 3.46% 2.40% 3.10% 5.53% .63% 1.82% 4.08% 2.35% .30%
RATIOS/SUPPLEMENTAL
DATA:
Expenses to average net assets .79 %+.86 %.82 %.77 %.76 %.79 %1.76 %+1.79%+ 1.90% 1.90% 1.74%+
Net investment income to
average net assets......... 4.61%+ 5.06% 3.41% 2.37% 3.04% 5.34% 3.58%+ 3.60%+ 4.02% 2.32% 1.39%+
Net assets, end of period
(000's omitted)............$182,756 $177,395 $194,406 $173,902 $193,158 $260,297 $319 $10,604 $14,554 $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% .99% 1.30%+
</TABLE>
- --------------
* Commencement of offering of Class B shares.
** 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 Fund, and reimbursed certain expenses for
Class D shares in 1994.
+ Annualized.
See notes to financial statements.
11
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN CASH MANAGEMENT FUND, INC.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Cash Management Fund, Inc. as of June
30, 1996, the related statements of operations for the six months then ended and
of changes in net assets for the six months then ended and for the year ended
December 31, 1995, and the financial highlights for each of 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 June
30, 1996, 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 Seligman Cash
Management Fund, Inc. as of June 30, 1996, the results of its operations, the
changes in its 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
July 31, 1996
12
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2, 4
DEAN, Fletcher School of Law and
Diplomacy at Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3, 4
PRESIDENT, Sarah Lawrence College
TRUSTEE, Committee for Economic Development
DIRECTOR, NYNEX
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2, 4
CHAIRMAN AND CEO, Kerr-McGee Corporation
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Aluminum Corporation
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, Kerr-McGee Corporation
JAMES C. PITNEY 3, 4
PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
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
RONALD T. SCHROEDER 1
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3, 4
DIRECTOR OR TRUSTEE,
Various Organizations
JAMES N. WHITSON 2, 4
EXECUTIVE VICE PRESIDENT AND DIRECTOR,
Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
PRESIDENT
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
- -----------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
13
<PAGE>
================================================================================
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
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
14
