<PAGE>
S E L I G M A N
----------------------------
CASH MANAGEMENT
FUND, INC.
Mid-Year Report
June 30, 1998
-------------
A Money Market Mutual Fund Seeking to
Preserve Capital and to Maximize
Liquidity and Current Income
<PAGE>
TO THE SHAREHOLDERS
During the first six months of 1998, Seligman Cash Management Fund continued to
invest in high-quality money market instruments to preserve its shareholders'
capital while maximizing liquidity. An interview with the Seligman Taxable Fixed
Income Team regarding the Fund appears on page 2.
The US economy continued to grow in the first half of 1998, bringing the
expansion into an unprecedented eighth year. Inflation remained low, wages were
high, consumer spending was strong, and the labor market was tight. According to
the Conference Board, consumer confidence rose to a 29-year high in June,
reflecting these positive fundamentals. Further, the supply of consumer goods
kept pace with demand, which helped the economic expansion remain balanced.
Earlier in the year, it was anticipated that the Federal Reserve Board would
raise short-term interest rates. However, by the second quarter of the year,
there was widespread sentiment, supported by economic indicators, that the
growth of the domestic economy was beginning to slow. This, coupled with the
mounting effects of the Asian financial crisis, again prevented the Fed from
raising interest rates. However, Seligman Cash Management Fund's seven-day
effective yield, based on Class A shares, of 4.80% on June 30 was slightly
higher than its yield on December 31, 1997.
Looking ahead, while the Asian financial crisis only modestly affected the US
economy in the first half of 1998, we believe its full impact is yet to come.
This leads us to believe that the current benign business environment could
become less stable. In fact, US corporations are beginning to see pressure on
their corporate profits.
While we expect the economy to remain healthy, it may not grow at the strong
pace seen over the past few years. Investors should maintain a realistic outlook
for the future. We believe the Fed will not be raising interest rates in the
coming months, which should result in stable short-term rates and little change
in the yield of your Fund.
As of July 1, the portfolio management responsibilities of Seligman Cash
Management Fund were fully assumed by Mr. Gary S. Zeltzer, a Managing Director
of J. & W. Seligman & Co. Incorporated, and head of the Seligman Taxable Fixed
Income Team. Mr. Zeltzer is supported by a group of investment professionals
dedicated to the objectives of Seligman Cash Management Fund.
As you may know, companies are modifying their computer systems to recognize
dates of January 1, 2000, and beyond. This is often referred to as the "Y2K"
problem. Unless systems are updated, many applications may interpret the last
two digits of the year to mean 1900 instead of 2000. J. & W. Seligman & Co.
Incorporated, the Seligman Investment Companies, and Seligman Data Corp., your
shareholder service agent, have jointly established a team to ensure that your
investment and shareholder services are not disrupted. This team is supported by
consulting firms specializing in Y2K solutions. Substantial work has been
performed to date, and we are confident that there will be no disruption in the
services provided by your Fund.
Thank you for your continued interest in Seligman Cash Management Fund. We look
forward to serving your investment needs in the many years to come. The Fund's
portfolio of investments and financial statements 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
July 31, 1998
1
<PAGE>
INTERVIEW WITH THE SELIGMAN TAXABLE FIXED INCOME TEAM
Q. How did economic and market factors influence Seligman Cash Management
Fund's results in the first half of 1998?
A. Despite a robust US economy and tight labor market, the Federal Reserve
Board has not raised short-term interest rates since March 1997. The Asian
financial crisis effectively began to slow the growth of the domestic
economy, thereby preventing the Fed from tightening monetary policy.
Early in the year, the belief was that the US economy would continue to grow
at a healthy pace. With this possibility in mind, the fixed-income market
began "pricing in" an anticipated interest rate hike. However, as the Asian
crisis spread through Eastern Europe, Russia, and Latin America, the
pressure on US Treasury bills eased, with the three-month Treasury bill
trading as low as 4.97% on June 1. Nevertheless, the seven-day effective
yield for Seligman Cash Management Fund's Class A shares was 4.80% on June
30--slightly higher than the yield on December 31, 1997.
Q. What was your investment strategy?
A. We continued to invest a substantial portion of Seligman Cash Management
Fund's assets in US Treasury securities. These higher-quality,
government-guaranteed securities have lower yields, but also carry lower
credit risk than other money market instruments. We compensated for the
slight loss in yields by maintaining a longer average maturity than we have
in years past, since securities with longer maturities usually provide
higher yields than those with shorter maturities.
Q. What is the outlook?
A. The effects of the global economic events in the first six months of 1998
have rippled through the financial markets around the world, and have slowed
the economies of many nations. Indeed, the expansion of the US economy began
to cool in the second quarter, and there are many indications that this
slowdown could continue throughout the balance of the year. We believe this
could keep the Fed from raising interest rates in the foreseeable future,
which should result in relatively stable short-term interest rates and
little change in the yield of Seligman Cash Management Fund.
A Team Approach
Seligman Cash Management Fund is managed by the Seligman Taxable Fixed Income
Team, headed by Gary S. Zeltzer. Mr. Zeltzer 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.
[PHOTO]
Seligman Taxable Fixed Income Team: (from left) Susan Egan, Nicholas Walsh, Gary
S. Zeltzer (Portfolio Manager)
2
<PAGE>
INVESTMENT RESULTS
June 30, 1998
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
------------ ----------- -----------
<S> <C> <C> <C>
Net Assets ........................................... $248,125,562 $12,795,948 $47,893,944
Net Asset Value per Share ............................ $1.00 $1.00 $1.00
Number of Shareholders ............................... 9,873 749 1,331
Dividends* ........................................... $0.023 $0.018 $0.018
Annualized Net Yield per Share* ...................... 4.64% 3.64% 3.64%
Annualized Effective Yield per Share With
Dividends Invested Monthly* ........................ 4.73% 3.69% 3.69%
</TABLE>
- ------------------
* For the six months ended June 30, 1998.
Investment in the Fund is 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>
PORTFOLIO OF INVESTMENTS
June 30, 1998
ANNUALIZED PRINCIPAL
YIELD ON AMOUNT
PURCHASE DATE OR SHARES VALUE
------------- ------------ ------------
<S> <C> <C> <C>
US GOVERNMENT SECURITIES 56.6%
US Treasury Notes:
5 1/4%, due 7/31/1998...................................... 5.10 - 5.32% $30,000,000 $ 30,002,534
4 3/4%, due 8/31/1998...................................... 5.42 - 5.47 35,000,000 34,959,787
4 3/4%, due 9/30/1998...................................... 5.39 30,000,000 29,953,381
4 3/4%, due 10/31/1998..................................... 5.48 40,000,000 39,904,688
5 1/2%, due 11/15/1998..................................... 5.49 40,000,000 40,000,000
------------
TOTAL US GOVERNMENT SECURITIES (Cost $174,820,390)........... 174,820,390
------------
FIXED TIME DEPOSITS 25.4%
Bank of Montreal, Grand Cayman, 7/1/1998...................... 6.08 12,700,000 12,700,000
Bank of Nova Scotia, Grand Cayman, 7/1/1998................... 6.21 12,700,000 12,700,000
Bayerische Vereinsbank, Grand Cayman, 7/1/1998................ 6.08 12,700,000 12,700,000
Canadian Imperial Bank of Commerce, Grand Cayman, 7/1/1998.... 6.21 12,700,000 12,700,000
Credit Communal de Belgique, Grand Cayman, 7/1/1998........... 6.27 2,070,000 2,070,000
First National Bank of Chicago, Grand Cayman, 7/1/1998........ 6.21 12,700,000 12,700,000
Republic National Bank of New York, Grand Cayman, 7/1/1998.... 6.21 12,700,000 12,700,000
------------
TOTAL FIXED TIME DEPOSITS (Cost $78,270,000).................. 78,270,000
------------
OTHER INVESTMENTS (Cost $86,679).............................. 7,479 shs. 83,426
------------
TOTAL INVESTMENTS (Cost $253,177,069) 82.0%................... 253,173,816
OTHER ASSETS LESS LIABILITIES 18.0%.......................... 55,641,638
------------
NET ASSETS 100.0%............................................ $308,815,454
============
</TABLE>
- ------------------
See Notes to Financial Statements.
4
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
<S> <C> <C>
ASSETS:
Investments, at value:
US Government securities (Cost $174,820,390).................... $174,820,390
Fixed time deposits (Cost $78,270,000).......................... 78,270,000
Other (Cost $86,679)............................................ 83,426 $253,173,816
------------
Receivable for Capital Stock sold.................................................... 64,400,394
Interest receivable.................................................................. 2,185,164
Investment in, and expenses prepaid to, shareholder service agent.................... 57,547
Other................................................................................ 118,516
------------
Total Assets......................................................................... 319,935,437
------------
LIABILITIES:
Payable for Capital Stock redeemed................................................... 9,353,090
Payable to custodian................................................................. 1,178,994
Accrued expenses, taxes, and other................................................... 587,899
------------
Total Liabilities.................................................................... 11,119,983
------------
Net Assets........................................................................... $308,815,454
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.01 par value; 1,400,000,000 shares authorized;
308,822,773 shares outstanding):
Class A........................................................................... $ 2,481,323
Class B........................................................................... 127,961
Class D........................................................................... 478,944
Additional paid-in capital........................................................... 305,734,545
Accumulated net realized loss........................................................ (4,066)
Net unrealized depreciation of investments........................................... (3,253)
------------
NET ASSETS:
Applicable to 248,132,346 Class A shares, 12,796,082 Class B shares, and
47,894,345 Class D shares, equivalent to $1.00 per share.......................... $308,815,454
============
</TABLE>
- ------------------
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1998
<S> <C> <C>
INVESTMENT INCOME:
Interest ............................................................................ $7,413,452
EXPENSES:
Management fee.......................................................... $543,255
Shareholder account services............................................ 255,400
Distribution and service fees........................................... 246,917
Registration............................................................ 98,479
Custody and related services............................................ 65,000
Shareholder reports and communications.................................. 32,407
Auditing and legal fees................................................. 24,926
Directors' fees and expenses............................................ 4,549
Miscellaneous........................................................... 7,210
----------
Total Expenses....................................................................... 1,278,143
----------
Net Investment Income ............................................................... 6,135,309
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments........................................ 561
Net change in unrealized appreciation of investments.................... (3,253)
----------
Net Loss on Investments ............................................................. (2,692)
----------
Increase in Net Assets from Operations .............................................. $6,132,617
=========
</TABLE>
- ------------------
See Notes to Financial Statements.
6
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
OPERATIONS: JUNE 30, 1998 DECEMBER 31, 1997
---------------- -----------------
<S> <C> <C>
Net investment income.................................................... $ 6,135,309 $ 10,731,480
Net realized gain on investments......................................... 561 --
Net change in unrealized appreciation of investments..................... (3,253) --
-------------- --------------
Increase in Net Assets from Operations................................... 6,132,617 10,731,480
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A............................................................... (5,232,561) (9,504,798)
Class B............................................................... (201,444) (287,754)
Class D............................................................... (701,304) (938,928)
-------------- --------------
Decrease in Net Assets from Distributions................................ (6,135,309) (10,731,480)
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares:
Class A............................................................... 244,811,541 369,012,050
Class B............................................................... 5,476,275 6,725,313
Class D............................................................... 27,806,080 26,841,455
Investment of dividends:
Class A............................................................... 4,336,312 8,286,168
Class B............................................................... 163,911 234,246
Class D............................................................... 502,286 641,267
Exchanged from associated Funds:
Class A............................................................... 1,759,285,062 1,337,682,789
Class B............................................................... 28,589,408 49,941,825
Class D............................................................... 754,403,664 533,443,570
-------------- --------------
Total.................................................................... 2,825,374,539 2,332,808,683
-------------- --------------
Cost of shares redeemed:
Class A............................................................... (277,451,839) (390,596,218)
Class B............................................................... (963,403) (2,106,850)
Class D............................................................... (15,155,038) (18,366,686)
Exchanged into associated Funds:
Class A............................................................... (1,689,457,365) (1,326,730,395)
Class B............................................................... (31,328,485) (46,429,595)
Class D............................................................... (743,772,412) (540,758,955)
-------------- --------------
Total.................................................................... (2,758,128,542) (2,324,988,699)
-------------- --------------
Increase in Net Assets from
Capital Share Transactions............................................... 67,245,997 7,819,984
-------------- --------------
Increase in Net Assets................................................... 67,243,305 7,819,984
NET ASSETS:
Beginning of period ..................................................... 241,572,149 233,752,165
-------------- --------------
End of Period............................................................ $ 308,815,454 $ 241,572,149
============== ==============
</TABLE>
- ------------------
See Notes to Financial Statements.
7
<PAGE>
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.
Class A shares acquired by an exchange from another Seligman investment company
originally purchased in an amount of $1,000,000 or more without an initial sales
charge, is subject to a contingent deferred sales load ("CDSL") of 1%, if
redeemed within 18 months of original purchase. 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 CDSL, if applicable, of 5% on redemptions in the first year of 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, if applicable, of 1% imposed on 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 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
its short-term 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. Other investments represent shares of certain other funds in
the Seligman Group of Investment Companies purchased to offset the Fund's
liability for deferred directors' fees. Such investments are valued at
current market values.
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.
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.
Dividends are declared daily and paid monthly.
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, 1998, distribution and service fees were the
only class-specific expenses.
3. Management Fee, Distribution 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 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
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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, 1998, was
equivalent to an annual rate of 0.40% 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 Class A shares during the six months ended June 30, 1998.
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 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, 1998, 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 $55,219 and $191,698, respectively.
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares occurring within one year of purchase and on certain redemptions
of Class A shares occurring within 18 months of purchase. For the six months
ended June 30, 1998, such charges amounted to $128,808.
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
retained by the Distributor for the six months ended June 30, 1998, amounted to
$8,222.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the six months ended June 30, 1998,
Seligman Services, Inc. received commissions of $3,811 from the sale of shares
of the Fund. Seligman Services, Inc. also received distribution and service fees
of $5,751 pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $255,400 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.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of the
Fund or other funds in the Seligman Group of Investment Companies. The cost of
such fees and earnings accrued thereon is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1998, of $138,068 is
included in other liabilities. Deferred fees and related accrued earnings are
not deductible for federal income tax purposes until such amounts are paid.
4. Loss Carryforward -- At December 31, 1997, 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.
9
<PAGE>
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 --------------------------------------------------
6/30/98 1997 1996 1995 1994 1993
------- ------ ------ ------ ------ ------
<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................................... 0.023 0.047 0.046 0.051 0.034 0.024
Dividends paid or declared.............................. (0.023) (0.047) (0.046) (0.051) (0.034) (0.024)
------ ------ ------ ------ ------ ------
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% 4.80% 4.71% 5.18% 3.46% 2.40%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 0.75%+ 0.78% 0.79% 0.86% 0.82% 0.77%
Net investment income to average net assets............. 4.64%+ 4.70% 4.61% 5.06% 3.41% 2.37%
Net Assets, End of Period (000s omitted)................ $248,125 $206,604 $208,950 $177,395 $194,406 $173,902
Without management fee waiver or
reimbursement of expenses:**
Net investment income per share...................... $0.023
Ratios:
Expenses to average net assets....................... 0.86%
Net investment income to average net assets.......... 2.28%
</TABLE>
- ------------------
See footnotes on page 11.
10
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B CLASS D
-------------------------- -------------------------------------------------------
SIX SIX
MONTHS YEAR 4/22/96* MONTHS YEAR ENDED DECEMBER 31, 5/3/93*
ENDED ENDED TO ENDED ---------------------------------- TO
6/30/98 12/31/97 12/31/96 6/30/98 1997 1996 1995 1994 12/31/93
------- -------- -------- ------- ------ ------ ------ ------ --------
<S> <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
------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment income....................... 0.018 0.037 0.025 0.018 0.037 0.036 0.040 0.024 0.003
Dividends paid or declared.................. (0.018) (0.037) (0.025) (0.018) (0.037) (0.036) (0.040) (0.024) (0.003)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period.............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: 1.83% 3.77% 2.44% 1.83% 3.77% 3.67% 4.08% 2.35% 0.30%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.............. 1.75%+ 1.78% 1.78%+ 1.75%+ 1.78% 1.79% 1.90% 1.90% 1.74%+
Net investment income to average net assets. 3.64%+ 3.70% 3.58%+ 3.64%+ 3.70% 3.61% 4.02% 2.32% 1.39%+
Net Assets, End of Period (000s omitted).... $12,796 $10,858 $2,493 $47,894 $24,110 $22,309 $14,554 $3,458 $26
Without management fee waiver or
reimbursement of expenses:**
Net investment income per share.......... $0.013 $0.002
Ratios:
Expenses to average net assets........... 3.23% 1.83%+
Net investment income to average net
assets................................ 0.99% 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 year 1993, 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, 1998, 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, 1997, 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, 1998, 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, 1998, 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, 1998
12
<PAGE>
BOARD OF DIRECTORS
John R. Galvin 2, 4
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, Raytheon Company
Alice S. Ilchman 3, 4
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
Frank A. McPherson 2, 4
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow 2, 4
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Trustee, The New York and Presbyterian Hospital
Betsy S. Michel 2, 4
Trustee, The Geraldine R. Dodge Foundation
Chairman of the Board of Trustees, St. George's School
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, 4
Retired Partner, Pitney, Hardin, Kipp & Szuch,
Law Firm
James Q. Riordan 3, 4
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Public Broadcasting Service
Robert L. Shafer 3, 4
Retired Vice President, Pfizer Inc.
James N. Whitson 2, 4
Director and Consultant, Sammons Enterprises, Inc.
Director, C-SPAN
Director, CommScope, Inc.
Brian T. Zino 1
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
Director Emeritus
Fred E. Brown
Director and Consultant, 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
Lawrence P. Vogel
Vice President
Gary S. Zeltzer
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
(212) 682-7600 Outside the
United States
(800) 622-4597 24-Hour
Automated
Telephone Access Service
14
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
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.
TXCM3 6/98
