================================================================================
SELIGMAN
[GRAPHIC PHOTO - OMITTED]
SELIGMAN
CASH
MANAGEMENT
FUND, INC.
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A MONEY MARKET MUTUAL FUND SEEKING
TO PRESERVE CAPITAL AND TO MAXIMIZE LIQUIDITY AND CURRENT INCOME
JUNE 30, 1997 o MID-YEAR REPORT
<PAGE>
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TO THE SHAREHOLDERS
Seligman Cash Management Fund continued to invest in high-quality money
market instruments, such as US Government agency and instrumentality
obligations, bank obligations, commercial paper, and short-term corporate debt
securities, in order to preserve your capital and to maximize liquidity.
Information on the Fund's results for the first half of 1997 appears on page 3.
Thus far, 1997 has shown great promise for both the domestic economy and the
financial markets. In the first quarter, yields in the short-term securities
market rose in anticipation of the Federal Reserve Board's decision to increase
the federal funds rate by 25 basis points in March, which improved the Fund's
performance. Yields continued their ascent in April under the assumption that
the strong rate of economic growth would compel the Fed to continue to raise
short-term rates. However, the Fed left short-term interest rates unchanged in
May, as new reports indicated moderating economic activity and tame inflation.
This change in the outlook brought yields in the short-term securities market
lower by the end of the second quarter. The yield on the benchmark three-month
US Treasury bill fell to 5.17% at June 30, having reached a high of 5.40% on
March 21.
The long-term outlook for the US economy remains positive. The reasonable
growth of the economy and the benign levels of inflation make it unlikely that
the Fed will raise short-term interest rates in the near future. Seligman Cash
Management Fund's yield, as well as yields of all money market funds, depends on
the interest rate outlook and the Fed's actions. The yield levels of the
short-term securities market will change only with a significant shift in the
economic forecast due either to increased inflationary pressures or a surge in
economic growth, as either event may prompt the Fed to tighten short-term
interest rates.
The yield spreads between short-term bank obligations, corporate debt
securities, and commercial paper on the one hand, and short-term federal
government instruments on the other, have narrowed to the point where the
increased risks inherent in investments not guaranteed by the federal government
are not justified by their current yield differentials. Accordingly, your
Manager has decided to begin investing a substantial portion of the Fund in
short-term government securities. This change is expected to result in a slight
reduction in the Fund's yield. Your Manager has agreed to waive a portion of its
management fee to mitigate, in part, the impact.
We are pleased to introduce your redesigned Shareholder Report. This change
is part of a corporate effort to enhance the overall clarity and quality of all
communications to our Shareholders. We hope you find the additional information
contained herein helpful.
We thank you for your continued support of Seligman Cash Management Fund, and
look forward to serving your investment needs in the many years to come.
A discussion with your Portfolio Manager and the Fund's portfolio of
investments follow this letter.
By order of the Board of Directors,
/s/ William C. Morris
- ---------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-----------------
Brian T. Zino
President
August 1, 1997
----
1
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INTERVIEW WITH YOUR PORTFOLIO MANAGER, LEONARD J. LOVITO
Q. WHICH ECONOMIC FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. On March 25, 1997, the Federal Reserve Board made this year's only
adjustment to short-term interest rates, raising the federal funds rate by
25 basis points to 5.50%. The Fed tightened monetary policy in response to
accelerating economic growth and the potential for increased inflation. The
robust economic activity was expected to continue through the second
quarter, which would prompt further fed funds rate increases. Anticipating
these higher rates, the three-month US Treasury bill yield rose to peak at
5.40% in late March. In the second quarter, however, economic growth
moderated and the rate of inflation continued to fall. Consequently, the Fed
made no additional changes to interest rates. The lack of Fed action
provoked a decline in short-term money market yields, as evidenced by the
drop in the yield of the three-month US Treasury bill to 5.17% by June 30.
Q. WHAT WAS YOUR INVESTMENT STRATEGY?
A. Once it became evident that the Fed would probably raise interest rates, the
average maturity of the Fund was reduced from approximately 40 days to 30
days. This strategy was employed to take advantage of rising money market
yields, and the Fund's seven-day effective yield rose to 4.91% from 4.71%
(the effective yield is the annualized yield with all dividends reinvested).
Recently, as it appeared that the Fed would maintain the current short-term
interest rate levels, the average maturity of the Fund was kept between 30
and 40 days. At June 30, 1997, the Fund's seven-day effective yield stood at
4.81%.
Q. WHAT IS THE OUTLOOK?
A. If economic growth and low inflation persist for the remainder of 1997, the
Fed will probably not make any interest rate adjustments. If this is the
case, we will continue to maintain a 30 to 40 day average maturity. However,
if economic activity increases to the point where fears of inflation are
rekindled, we will reduce the Fund's average maturity to take advantage of
rising short-term interest rates, which would ultimately increase the Fund's
yield. Conversely, if the economy were to slow to a pace where monetary
easing was warranted, the Fund would increase its average maturity to lock
in higher rates.
- --------------------------------------------------------------------------------
A TEAM APPROACH
Seligman Cash Management Fund is managed by the Seligman Taxable Fixed Income
Team. Mr. Leonard J. Lovito, Portfolio Manager, is assisted by seasoned research
professionals who are responsible for identifying quality money market
instruments in order to preserve investors' capital and to maximize liquidity
and current income.
[GRAPHIC OMITTED: PHOTOGRAPH OF THE FOLLOWING INDIVIDUALS:]
SELIGMAN TAXABLE FIXED INCOME TEAM: (FROM LEFT) NICHOLAS WALSH, SUSAN EGAN,
(SEATED) LEONARD J. LOVITO (PORTFOLIO MANAGER)
- --------------------------------------------------------------------------------
- ----
2
<PAGE>
<TABLE>
<CAPTION>
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INVESTMENT RESULTS
SIX MONTHS ENDED JUNE 30, 1997
--------------------------------------------
CLASS A CLASS B CLASS D
----------- ---------- -----------
<S> <C> <C> <C>
NET ASSETS AT JUNE 30, 1997 ................................... $199,922,318 $4,417,567 $25,352,148
NET ASSET VALUE PER SHARE AT JUNE 30, 1997 .................... $1.00 $1.00 $1.00
NUMBER OF SHAREHOLDERS AT JUNE 30, 1997 ....................... 11,333 285 1,237
DIVIDENDS ..................................................... $.023 $.018 $.018
ANNUALIZED NET YIELD PER SHARE ................................ 4.66% 3.66% 3.66%
ANNUALIZED EFFECTIVE YIELD PER SHARE WITH
DIVIDENDS INVESTED MONTHLY .................................... 4.76% 3.72% 3.72%
</TABLE>
- -----------------
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>
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PORTFOLIO OF INVESTMENTS
June 30, 1997
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------------ ----------- ---------
<S> <C> <C> <C>
COMMERCIAL PAPER 45.6%
AUTOMOTIVE 5.1 %
Ford Motor Credit Corp., 8/25/97 ........................ 5.62% $11,700,000 $ 11,600,972
------------
BANKING 4.3%
Norwest Financial Corp., 9/18/97 ........................ 5.62 10,000,000 9,878,428
------------
CAPITAL EQUIPMENT 10.4%
General Electric Capital Corp., 7/24/97 ................. 5.72 12,700,000 12,654,238
John Deere Capital Corp., 8/22/97 ....................... 5.62 11,400,000 11,308,775
------------
23,963,013
------------
FINANCE 20.9%
American Express Credit Corp., 9/2/97 ................... 5.63 11,500,000 11,388,306
American General Finance Corp., 8/6/97 .................. 5.71 11,700,000 11,634,129
Associates Corp. of North America, 9/17/97 .............. 5.63 11,500,000 11,361,712
Beneficial Corp., 7/9/97 ................................ 5.66 13,700,000 13,683,012
------------
48,067,159
------------
OFFICE PRODUCTS 4.9%
Pitney Bowes Credit Corp., 9/26/97 ...................... 5.62 11,400,000 11,247,373
------------
TOTAL COMMERCIAL PAPER (Cost $104,756,945) .............. 104,756,945
------------
FIXED TIME DEPOSITS 30.1%
ABN-AMRO Bank, Grand Cayman, 7/1/97 ..................... 6.08 11,000,000 11,000,000
Bank of Montreal, Grand Cayman, 7/1/97 .................. 6.21 11,000,000 11,000,000
Bayerische Vereinsbank AG, Grand Cayman, 7/1/97 ......... 6.08 11,000,000 11,000,000
Canadian Imperial Bank of Commerce,
Grand Cayman, 7/1/97 .................................. 6.21 11,000,000 11,000,000
First National Bank of Chicago,
Grand Cayman, 7/1/97 .................................. 6.21 11,000,000 11,000,000
National Westminster Bank, Nassau, 7/1/97 ............... 6.30 3,200,000 3,200,000
UBS, Grand Cayman, 7/1/97 ............................... 6.08 11,000,000 11,000,000
------------
TOTAL FIXED TIME DEPOSITS (Cost $69,200,000) ............ 69,200,000
------------
BANK NOTES 16.8%
Huntington National Bank, Ohio, 7/10/97 ................. 5.73 13,300,000 13,300,000
NBD Bank, Detroit, 9/5/97 ............................... 5.71 12,000,000 12,000,000
Wachovia Bank of North Carolina, 7/17/97 ................ 5.76 13,300,000 13,300,208
------------
TOTAL BANK NOTES (Cost $38,600,208) ..................... 38,600,208
------------
CERTIFICATES OF DEPOSIT 5.4%
(Cost $12,400,000)
First Tennessee Bank, Memphis, 7/31/97 .................. 5.70 12,400,000 12,400,000
------------
TOTAL INVESTMENTS 97.9% (Cost $224,957,153) ............ 224,957,153
OTHER ASSETS LESS LIABILITIES 2.1% ..................... 4,734,880
------------
NET ASSETS 100.0% ...................................... $229,692,033
============
</TABLE>
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See Notes to Financial Statements.
- ----
4
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
ASSETS:
<S> <C> <C>
Investments, at value:
Commercial paper (cost $104,756,945) ..................................... $104,756,945
Fixed time deposits (cost $69,200,000) ................................... 69,200,000
Bank notes (cost $38,600,208) ............................................ 38,600,208
Certificates of deposit (cost $12,400,000) ............................... 12,400,000 $224,957,153
-----------
Cash ..................................................................................... 278,452
Receivable for Capital Stock sold ........................................................ 7,902,587
Interest receivable ...................................................................... 511,069
Investment in, and expenses prepaid to, shareholder service agent ........................ 54,686
Other .................................................................................... 93,370
-----------
TOTAL ASSETS ............................................................................. 233,797,317
-----------
LIABILITIES:
Payable for Capital Stock redeemed ....................................................... 3,624,584
Accrued expenses, taxes, and other ....................................................... 480,700
-----------
TOTAL LIABILITIES ........................................................................ 4,105,284
-----------
NET ASSETS ............................................................................... $229,692,033
COMPOSITION OF NET ASSETS: ============
Capital Stock, at par ($0.01 par value; 1,400,000,000 shares authorized;
229,696,660 shares outstanding):
Class A ................................................................................ $ 1,999,269
Class B ................................................................................ 44,176
Class D ................................................................................ 253,522
Additional paid-in capital ............................................................... 227,399,693
Accumulated net realized loss ............................................................ (4,627)
-----------
NET ASSETS:
Applicable to 199,926,945 Class A shares, 4,417,567 Class B shares, and 25,352,148
Class D shares, equivalent to $1.00 per share ............................................ $229,692,033
============
</TABLE>
- ----------
See Notes to Financial Statements.
- -----
5
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1997
INVESTMENT INCOME:
<S> <C> <C>
Interest .......................................................................... $6,273,980
EXPENSES:
Management fee ............................................... $463,593
Shareholder account services ................................. 271,544
Distribution and service fees ................................ 148,448
Registration ................................................. 68,566
Custody and related services ................................. 37,000
Shareholder reports and communications ....................... 34,933
Auditing and legal fees ...................................... 24,649
Directors' fees and expenses ................................. 12,987
Miscellaneous ................................................ 7,571
----------
TOTAL EXPENSES .................................................................... 1,069,291
----------
INCREASE IN NET ASSETS FROM OPERATIONS-- NET INVESTMENT INCOME .................... $5,204,689
==========
</TABLE>
- ----------
See Notes to Financial Statements.
- ----
6
<PAGE>
<TABLE>
<CAPTION>
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STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1996
------------- -----------------
<S> <C> <C>
OPERATIONS:
INCREASE IN NET ASSETS FROM OPERATIONS -- NET INVESTMENT INCOME ............... $ 5,204,689 $ 9,382,018
------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A .................................................................... (4,657,093) (8,838,245)
Class B .................................................................... (127,513) (29,542)
Class D .................................................................... (420,083) (514,231)
------------ --------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS ..................................... (5,204,689) (9,382,018)
------------ --------------
CAPITAL SHARE TRANSACTIONS:*
Proceeds from sale of shares:
Class A .................................................................... 175,920,572 302,318,619
Class B .................................................................... 3,356,603 2,516,484
Class D .................................................................... 10,041,333 8,286,958
Net asset value of shares issued in payment of dividends:
Class A .................................................................... 4,108,180 7,769,306
Class B .................................................................... 107,403 23,729
Class D .................................................................... 302,704 395,206
Exchanged from associated Funds:
Class A .................................................................... 623,767,874 1,123,234,216
Class B .................................................................... 17,946,512 5,538,322
Class D .................................................................... 160,338,991 144,499,447
------------ --------------
Total ......................................................................... 995,890,172 1,594,582,287
------------ --------------
Cost of shares redeemed:
Class A .................................................................... (203,558,452) (315,244,457)
Class B .................................................................... (1,165,678) (57,036)
Class D .................................................................... (9,928,183) (16,603,403)
Exchanged into associated Funds:
Class A .................................................................... (609,265,470) (1,086,522,720)
Class B .................................................................... (18,320,710) (5,528,062)
Class D .................................................................... (157,711,811) (128,823,731)
------------ --------------
Total ......................................................................... (999,950,304) (1,552,779,409)
------------ --------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS .................................................... (4,060,132) 41,802,878
------------ --------------
INCREASE (DECREASE) IN NET ASSETS ............................................. (4,060,132) 41,802,878
NET ASSETS:
Beginning of Period ........................................................... 233,752,165 191,949,287
------------ --------------
END OF PERIOD ................................................................. $229,692,033 $ 233,752,165
============ ==============
</TABLE>
- ----------
* The Fund began offering Class B shares on April 22, 1996.
See Notes to Financial Statements.
- ----
7
<PAGE>
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NOTES TO FINANCIAL STATEMENTS
1. MULTIPLE CLASSES OF SHARES -- 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, the commencement of Class D shares,
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 0.75%, 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 after 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
on which a separate vote of any class is required.
2. SIGNIFICANT ACCOUNTING POLICIES -- The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Fund:
a. SECURITY VALUATION -- 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. FEDERAL TAXES -- There is no provision for federal income 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. SECURITY TRANSACTIONS AND RELATED INVESTMENT
INCOME -- 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. REPURCHASE AGREEMENTS -- 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. MULTIPLE CLASS ALLOCATIONS -- 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
attributable to a particular class, are charged directly to such class. For
the six months ended June 30, 1997, distribution and service fees were the
only class-specific expenses.
3. MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS -- The
Manager manages the affairs of the Fund and provides the necessary personnel and
facilities. Compensation of all officers of the Fund, all
- ----
8
<PAGE>
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NOTES TO FINANCIAL STATEMENTS
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.
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, 1997, was
equivalent to an annual rate of 0.41% of the Fund's average daily net assets.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to distribution of its shares. Under the Plan, with
respect to Class A shares, 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 ClassA shares during the six months ended June 30, 1997.
Under the Plan, with respect to Class B and Class D shares, 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 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 provides 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, 1997, 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 $34,391 and $114,057, respectively.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year after purchase. For the
six months ended June 30, 1997, such charges amounted to $14,254.
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 Bshares sold. The aggregate amount of such payments
and the Class B shares distribution fees retained by the Distributor, for the
six months ended June 30, 1997, was $9,303.
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, 1997, Seligman Services, Inc. received distribution and service fees of
$4,607, pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $271,544 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.
----
9
<PAGE>
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NOTES TO FINANCIAL STATEMENTS
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, 1997, of $146,313 is
included in other liabilities. Deferred fees and related accrued interest are
not deductible for federal income tax purposes until such amounts are paid.
4. LOSS CARRYFORWARD -- At December 31, 1996, the Fund had a net loss
carryforward for federal income tax purposes of $4,627, which is available for
offset against future taxable net gains, expiring in 1999.
- ----
10
<PAGE>
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FINANCIAL HIGHLIGHTS
The Fund's financial highlights are presented below. "Per share operating
performance" data is designed to allow investors to trace the operating
performance of each Class, on a per share basis, from the beginning net asset
value to the ending net asset value, so that investors can understand what
effect the individual items have on their investment, assuming it was held
throughout the period. Generally, 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.
"Total return based on net asset value" measures each Class's performance
assuming that investors purchased Fund shares at net asset value as of the
beginning of the period, invested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value on the last day of the
period. The total return computations do not reflect any sales charges investors
may incur in purchasing or selling shares of the Fund. Total returns for periods
of less than one year are not annualized.
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX
MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------
6/30/97 1996 1995 1994 1993 1992
---------- ------ ------ ------ ------ ------
<S> <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
------ ------ ------ ------ ------ ------
Net investment income .023 .046 .051 .034 .024 .030
Dividends paid or declared ......................... (.023) (.046) (.051) (.034) (.024) (.030)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ..................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET
ASSET VALUE: 2.34% 4.71% 5.18% 3.46% 2.40% 3.10%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ..................... .80%+ .79% .86% .82% .77% .76%
Net investment income to average net assets ........ 4.66%+ 4.61% 5.06% 3.41% 2.37% 3.04%
NET ASSETS, END OF PERIOD
(000s omitted) ..................................... $199,922 $208,950 $177,395 $194,406 $173,902 $193,158
Without management fee waiver or
reimbursement of expenses:**
Net investment income per share .................. $.023 $.029
Ratios:
Expenses to average net assets ................... .86% .85%
Net investment income to average
net assets ....................................... 2.28% 2.95%
</TABLE>
- ----------
See footnotes on page 12.
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11
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<TABLE>
<CAPTION>
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FINANCIAL HIGHLIGHTS
CLASS B CLASS D
------------------------------------------------------------------
SIX SIX
MONTHS 4/22/96* MONTHS YEAR ENDED DECEMBER 31, 5/3/93*
ENDED TO ENDED -------------------------- TO
6/30/97 12/31/96 6/30/97 1996 1995 1994 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 ............................... .018 .025 .018 .036 .040 .024 .003
Dividends paid or declared .......................... (.018) (.025) (.018) (.036) (.040) (.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: 1.83% 2.44% 1.83% 3.67% 4.08% 2.35% .30%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ...................... 1.80%+ 1.78%+ 1.80%+ 1.79% 1.90% 1.90% 1.74%+
Net investment income to average net assets ......... 3.66%+ 3.58%+ 3.66%+ 3.61% 4.02% 2.32% 1.39%+
NET ASSETS, END OF PERIOD
(000s omitted) ...................................... $4,418 $2,493 $25,352 $22,309 $14,554 $3,458 $26
Without management fee waiver or
reimbursement of expenses:**
Net investment income per share ................... $.013 $.002
Ratios:
Expenses to average net assets .................... 3.23% 1.83%+
Net investment income to average
net assets ........................................ .99% 1.30%+
</TABLE>
- ----------
* Commencement of offering of shares.
** The Manager, at its discretion, waived a portion of its management fees for
the Fund for the years 1992 and 1993, and reimbursed certain expenses for
Class D shares in 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 statement of assets and liabilities, including
the portfolio of investments, of Seligman Cash Management Fund, Inc. as of June
30, 1997, 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, 1996 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, 1997, 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, 1997, 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.
DELOITTE & TOUCHE LLP
New York, New York
August 1, 1997
- --------------------------------------------------------------------------------
----
13
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
FRED E. BROWN
DIRECTOR EMERITUS
DIRECTOR AND CONSULTANT, J. & W. Seligman & Co.
Incorporated
JOHN R. GALVIN 2
DEAN, Fletcher School of Law and Diplomacy at
Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3
PRESIDENT, Sarah Lawrence College
TRUSTEE, Committee for Economic Development
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
RETIRED CHAIRMAN AND SENIOR PARTNER, Sullivan &
Cromwell, Law Firm
DIRECTOR, Commonwealth Aluminum Corporation
BETSY S. MICHEL 2
DIRECTOR OR TRUSTEE, Various Organizations
WILLIAM C. MORRIS 1
CHAIRMAN
CHAIRMAN OF THE BOARD, J. & W. Seligman & Co.
Incorporated
CHAIRMAN, Carbo Ceramics Inc.
DIRECTOR, Kerr-McGee Corporation
JAMES C. PITNEY 3
RETIRED PARTNER, Pitney, Hardin, Kipp & Szuch,
Law Firm
JAMES Q. RIORDAN 3
DIRECTOR, The Brooklyn Union Gas Company
TRUSTEE, Committee for Economic Development
DIRECTOR, Dow Jones & Co., Inc.
DIRECTOR, Public Broadcasting Service
RICHARD R. SCHMALTZ 1
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
TRUSTEE EMERITUS, Colby College
ROBERT L. SHAFER 3
DIRECTOR OR TRUSTEE, Various Organizations
JAMES N. WHITSON 2
EXECUTIVE VICE PRESIDENT AND DIRECTOR,
Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
PRESIDENT
PRESIDENT, J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
- ----------------
MEMBER: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
- --------------------------------------------------------------------------------
- ----
14
<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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR MORE INFORMATION
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>
SELIGMAN FINANCIAL SERVICES, INC.
AN AFFILIATE OF
[GRAPHIC LOGO OMITTED]
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
CHARGES, MANAGEMENT FEE, AND OTHER COSTS. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
TXCM1 6/97
