<PAGE>
SELIGMAN
-----------------
CASH MANAGEMENT
FUND, INC.
ANNUAL REPORT
DECEMBER 31, 1999
--------
A Money Market Mutual Fund
Seeking to Preserve Capital
and to Maximize Liquidity
and Current Income
SELIGMAN ADVISORS, 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.
TXCM2 12/99
<PAGE>
TO THE SHAREHOLDERS
The past fiscal year was characterized by steadily rising interest rates,
above-trend economic growth in the US, and accelerating international growth.
During this time, the Federal Reserve Board increased the federal funds rate
three times in an attempt to slow the robust US economy. These increases
reversed all the Fed's 1998 actions. In 1998, the Fed had eased monetary policy
in response to the worldwide economic crisis, which many feared could disrupt US
economic growth, possibly even pulling the US into a recession. Not only did the
US economy avoid recession, it continued to expand at a remarkable pace,
surprising most economic commentators.
By the beginning of 1999, the world's economies were recovering strongly and the
US entered its ninth year of uninterrupted expansion. This positive global and
domestic economic environment caused the Fed to quickly resume its vigilance
regarding inflation.
As early as May 1999, the Fed announced its bias toward a more restrictive
monetary policy, and in June voted to raise the federal funds rate 25 basis
points -- the first of three identical hikes which would leave this key rate 75
basis points higher by year-end. In response to the strong economy and the
federal funds rate increases, the 30-year Treasury bond yield moved
significantly higher, from 5.08% on December 31, 1998, to 6.48% on December 31,
1999. While the rising rate environment negatively impacted most fixed-income
securities, money-market investors benefited from increasing yields.
We believe that, in the coming year, bond market volatility will subside and
yields will stabilize. While the Federal Reserve Board is likely to remain
cautious regarding inflationary pressures, we believe it will not be as
aggressive as it was in 1999. In addition, we believe that markets have already
priced in some future rate increases by the Fed, and that yields are thus
unlikely to move significantly higher.
Thank you for your continued support of Seligman Cash Management Fund. A
discussion with your Portfolio Manager, as well as the Fund's investment
results, portfolio of investments, and financial statements, follows this
letter. We look forward to serving your investment needs for many years to come.
By order of the Board of Directors,
/s/ William C. Morris
- -----------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-----------------------
Brian T. Zino
President
February 4, 2000
1
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGER, GARY S. ZELTZER
Q: What economic and market factors influenced Seligman Cash Management Fund
during the past fiscal year?
A: During the past fiscal year, the Federal Reserve Board, concerned about the
possibility of inflation, raised the federal funds rate three times, for a
total of 75 additional basis points. These rate hikes were a complete
reversal of the Fed's easier monetary policy of 1998.
The Fed's actions, along with increased inflation concerns among market
participants, caused the 30-year US Treasury bond yield to increase by
nearly 140 basis points and the 90-day US Treasury bill yield to increase
by more than 80 basis points. Seligman Cash Management Fund benefited from
this rising rate environment and, on December 31, 1999, the Fund's 30-day
effective yield was 4.75%, up nearly a full percentage point from its 3.79%
yield on December 31, 1998.
Q: What was your investment strategy?
A: In 1999, financial markets were highly volatile, and Seligman Cash
Management Fund experienced significant swings in cash flows. In order to
manage these fluctuations, we remained in the short end of the market. On
December 31, 1999, the Fund's weighted average maturity was 11 days. We
continued to remain focused on maintaining high credit quality for the
Fund.
Q: What is your outlook?
A: We believe that the economy will slow moderately from the robust pace of
the past few years, and that the Federal Reserve Board will thus be less
aggressive than it was in 1999. Such a scenario should allow interest rates
to stabilize. Seligman Cash Management Fund will continue to pursue
high-quality, short-term investment instruments that can provide a
competitive yield, along with stability of principal, for the Fund's
shareholders.
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.
Taxable Fixed Income Team: Gary Zeltzer (Portfolio Manager), Brian Turner,
Nicholas Walsh, Deborah Joseph (Administrative Assistant)
2
<PAGE>
INVESTMENT RESULTS
December 31, 1999
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS D
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Net Assets............................. $293,775,631 $42,611,873 $5,305,459 $29,077,740
Net Asset Value per Share.............. $1.00 $1.00 $1.00 $1.00
Number of Shareholders................. 11,482 2,558 126 2,060
Dividends*............................. $0.042 $0.032 $0.022 $0.032
Annualized Net Yield per Share......... 4.22% 3.21% 3.63% 3.21%
Annualized Effective Yield per Share With
Dividends Invested Monthly........... 4.30% 3.26% 3.70% 3.26%
<FN>
- ------------------
* For the year ended December 31, 1999, except Class C shares, which are for the
period May 27, 1999 (commencement of offering of shares), to December 31,
1999.
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.
</FN>
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ------------ ------------
<S> <C> <C> <C>
US GOVERNMENT SECURITIES 40.3%
US Treasury Bills, 2/17/2000......................................... 5.19% $30,000,000 $29,805,733
US Treasury Bills, 1/20/2000......................................... 5.20 30,000,000 29,920,992
US Treasury Bills, 1/20/2000......................................... 5.37 45,000,000 44,877,331
US Treasury Bills, 1/13/2000......................................... 5.37 30,000,000 29,948,150
US Treasury Bills, 1/13/2000......................................... 5.47 15,000,000 14,973,600
------------
TOTAL US GOVERNMENT SECURITIES (Cost $149,525,806)................... 149,525,806
------------
FIXED TIME DEPOSITS 36.4%
ABN-AMRO Bank, Grand Cayman, 4.75%, 1/3/2000......................... 4.82 15,000,000 15,000,000
Bank of Montreal, Grand Cayman, 5.00%, 1/3/2000...................... 5.07 15,000,000 15,000,000
Banc One, Grand Cayman, 4.25%, 1/3/2000.............................. 4.31 15,000,000 15,000,000
Canadian Imperial Bank of Commerce, Grand Cayman, 4.50%, 1/3/2000.... 4.56 15,000,000 15,000,000
Credit Communal de Belgique, Grand Cayman, 4.75%, 1/3/2000........... 4.82 15,000,000 15,000,000
First Union National Bank, Grand Cayman, 4.50%, 1/3/2000............. 4.56 15,000,000 15,000,000
HSBC Bank, Grand Cayman, 4.75%, 1/3/2000............................. 4.82 15,000,000 15,000,000
National Westminster Bank, Nassau, 4.50%, 1/3/2000................... 4.56 15,000,000 15,000,000
UBS, Grand Cayman, 4.50%, 1/3/2000................................... 4.56 15,000,000 15,000,000
------------
TOTAL FIXED TIME DEPOSITS (Cost $135,000,000)........................ 135,000,000
------------
REPURCHASE AGREEMENT 23.6% (Cost $87,300,000)
State Street Bank & Trust 3.50%, dated 12/31/1999, maturing 1/3/2000
collaterized by: $83,845,000 US Treasury Notes 7.50%, 2/15/2005,
with a fair market value of $89,923,762........................... 3.55 87,300,000 87,300,000
------------
TOTAL INVESTMENTS 100.3% (Cost $371,825,806)....................... 371,825,806
OTHER ASSETS LESS LIABILITIES (0.3)%................................ (1,055,103)
------------
NET ASSETS 100.0%.................................................... $370,770,703
============
</TABLE>
- ------------------
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
ASSETS:
Investments, at value:
US Government securities (Cost $149,525,806)..... $149,525,806
Fixed time deposits (Cost $135,000,000).......... 135,000,000
Repurchase Agreement (Cost $87,300,000).......... 87,300,000 $371,825,806
------------
Cash............................................................... 69,003
Receivable for Capital Stock sold.................................. 6,982,533
Investment in, and expenses prepaid to, shareholder service agent.. 70,263
Interest receivable................................................ 25,779
Other.............................................................. 165,315
------------
Total Assets....................................................... 379,138,699
------------
LIABILITIES:
Payable for Capital Stock redeemed................................. 7,833,493
Accrued expenses and other......................................... 534,503
------------
Total Liabilities.................................................. 8,367,996
------------
Net Assets......................................................... $370,770,703
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.01 par value; 1,400,000,000 shares
authorized; 370,760,003 shares outstanding):
Class A......................................................... $ 2,937,681
Class B......................................................... 426,098
Class C......................................................... 53,053
Class D......................................................... 290,768
Additional paid-in capital......................................... 367,062,174
Undistributed net realized gain.................................... 929
------------
NET ASSETS:
Applicable to 293,768,047 Class A shares, 42,609,803 Class B
shares, 5,305,323 Class C shares, and 29,076,830 Class D
shares, equivalent to $1.00 per share........................... $370,770,703
============
- ------------------
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
INVESTMENT INCOME:
Interest..................................................... $19,859,823
-----------
EXPENSES:
Management fee.................................. $1,627,094
Distribution and service fees................... 1,001,224
Shareholder account services.................... 700,586
Registration.................................... 151,641
Custody and related services.................... 86,859
Auditing and legal fees......................... 60,897
Shareholder reports and communications.......... 60,134
Directors' fees and expenses.................... 14,243
Miscellaneous................................... 18,294
----------
Total Expenses Before Fee Waiver............................. 3,720,972
Fee Waiver................................................... (387,345)
-----------
Total Expenses After Fee Waiver.............................. 3,333,627
-----------
Net Investment Income........................................ 16,526,196
NET REALIZED
GAIN ON INVESTMENTS:
Net Realized Gain on Investments............................. 24,060
-----------
Increase in Net Assets from Operations....................... $16,550,256
===========
- --------------
See Notes to Financial Statements.
6
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
--------------------------------
OPERATIONS: 1999 1998
-------------- --------------
Net investment income......................... $ 16,526,196 $ 13,401,519
Net realized gain (loss) on investments....... 24,060 (22,865)
-------------- --------------
Increase in Net Assets from Operations........ 16,550,256 13,378,654
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A....................................... (13,239,900) (11,137,647)
Class B....................................... (1,322,133) (649,323)
Class C....................................... (35,705) --
Class D....................................... (1,914,210) (1,614,549)
-------------- --------------
Decrease in Net Assets from Distributions..... (16,511,948) (13,401,519)
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares................. 578,692,226 504,180,586
Investment of dividends....................... 12,459,279 10,848,889
Exchanged from associated Funds............... 8,209,614,219 6,095,906,910
-------------- --------------
Total......................................... 8,800,765,724 6,610,936,385
-------------- --------------
Cost of shares redeemed....................... (829,766,335) (565,615,022)
Exchanged into associated Funds............... (7,950,126,099) (5,937,011,542)
-------------- --------------
Total......................................... (8,779,892,434) (6,502,626,564)
-------------- --------------
Increase in Net Assets from Capital Share
Transactions................................ 20,873,290 108,309,821
-------------- --------------
Increase in Net Assets........................ 20,911,598 108,286,956
NET ASSETS:
Beginning of year............................. 349,859,105 241,572,149
-------------- --------------
End of Year................................... $ 370,770,703 $ 349,859,105
============== ==============
- ------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Multiple Classes of Shares -- Seligman Case Management Fund, Inc. (the
"Fund") offers four classes of shares: Class A shares, Class B shares, Class C
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 are subject to a contingent deferred sales
charge ("CDSC") of 1% if redeemed within 18 months of original purchase. Class B
shares are subject to a distribution fee of 0.75% and a service fee of up to
0.25% on an annual basis, and a CDSC, 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
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
purchase. The Fund began offering Class C shares on May 27, 1999. Class C
shares acquired by an exchange from another Seligman investment company 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 CDSC, if applicable, of 1% imposed on redemptions made
within 18 months of the original 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 CDSC, if applicable, of 1% imposed on redemptions made within one
year of purchase. The four 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-specific 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. Investments of certain other funds in the Seligman Group of
Investment Companies purchased to offset the Fund's liability for deferred
directors' fees 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 agreements, 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 year ended December 31, 1999, distribution and service fees were the
only class-specific expenses.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. Capital Share Transactions -- The Fund has authorized 1,400,000,000 shares of
$0.01 par value Capital Stock. Transactions in shares of Capital Stock, each at
a value of $1.00 per share, were as follows:
Year Ended December 31,
-------------------------------
1999 1998
-------------- --------------
Class A
Sale of shares.................. 546,954,171 460,655,703
Investment of
dividends...................... 10,306,371 9,076,847
Exchanged from
associated Funds............... 5,622,443,254 4,153,086,377
-------------- --------------
Total........................... 6,179,703,796 4,622,818,927
-------------- --------------
Shares redeemed................. (707,787,966) (525,764,601)
Exchanged into
associated Funds............... (5,451,596,881) (4,030,213,963)
-------------- --------------
Total........................... (6,159,384,847) (4,555,978,564)
-------------- --------------
Increase in Shares.............. 20,318,949 66,840,363
============== ==============
Class B
Sale of shares.................. 8,649,264 10,830,398
Investment of
dividends...................... 1,098,450 538,909
Exchanged from
associated Funds............... 187,602,839 96,955,102
-------------- --------------
Total........................... 197,350,553 108,324,409
-------------- --------------
Shares redeemed................. (17,403,964) (7,423,097)
Exchanged into
associated Funds............... (161,526,822) (87,569,652)
-------------- --------------
Total........................... (178,930,786) (94,992,749)
-------------- --------------
Increase in Shares.............. 18,419,767 13,331,660
============== ==============
May 27, 1999*
To
December 31, 1999
-----------------
Class C
Sale of shares.................. 1,846,950
Investment of
dividends...................... 25,130
Exchanged from
associated funds............... 34,648,180
----------
Total........................... 36,520,260
----------
Shares redeemed................. (231,691)
Exchanged into
associated funds............... (30,983,246)
-----------
Total........................... (31,214,937)
-----------
Increase in Shares.............. 5,305,323
===========
- -------------
*Commencement of offering of shares.
Year Ended December 31,
--------------------------------
1999 1998
--------------- --------------
Class D
Sale of shares.................. 21,241,859 32,694,485
Investment of
dividends...................... 1,029,328 1,233,133
Exchanged from
associated Funds............... 2,364,919,946 1,845,865,431
-------------- ---------------
Total........................... 2,387,191,133 1,879,793,049
-------------- ---------------
Shares redeemed................. (104,342,716) (32,427,324)
Exchanged into
associated Funds............... (2,306,019,150) (1,819,227,927)
-------------- ---------------
Total........................... (2,410,361,866) (1,851,655,251)
-------------- ---------------
Increase (Decrease)
in Shares...................... (23,170,733) 28,137,798
============== ===============
4. 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 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. Effective January 25, 1999, the Manager, at its discretion, agreed to
waive a portion of its management fee equal to an annual rate of 0.10%. The
management fee for the year ended December 31, 1999, was equivalent to an annual
rate of 0.30% 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 Advisors, 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,
at tributable to the particular service organizations for providing personal
services
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 year ended December 31, 1999.
Under the Plan, with respect to Class B shares, Class C shares issued in
exchange from another Seligman investment company 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, Class C, and Class D shares for which the organizations
are responsible; and, for Class C and Class D shares, 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 year ended December 31, 1999, 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 $403,004 and $591,652, respectively. For the period ended
December 31, 1999, fees incurred under the Plan for Class C shares aggregated
$6,568, or 0.67% per annum of the average daily net assets of Class C shares.
The Distributor is entitled to retain any CDSC imposed on certain
redemptions of Class A and Class C shares occurring within 18 months of purchase
and on redemptions of Class D shares occurring within one year of purchase. For
the year ended December 31, 1999, such charges amounted to $515,829.
The Distributor has sold its rights to collect any CDSC imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSC 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 of such payments
retained by the Distributor, for the year ended December 31, 1999, amounted to
$12,345.
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 year ended December 31, 1999,
Seligman Services, Inc. received commissions of $13,170 from the sale of shares
of the Fund. Seligman Services, Inc. also received distribution and service fees
of $11,299, pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $700,586 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 December 31, 1999, of $146,666,
is included in other liabilities. Deferred fees and related accrued earnings are
not deductible for federal income tax purposes until such amounts are paid.
10
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand each Class's financial
performance for the past five years or from its inception if less than five
years. Certain information reflects financial results for a single share of a
Class that was held throughout the periods shown. Per share amounts are
calculated using average shares out standing. "Total return" shows the rate that
you would have earned (or lost) on an investment in each Class, assuming you
reinvested all your dividends. Total returns do not reflect any sales charges
and are not annualized for periods of less than one year.
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Year............... $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income............................ 0.042 0.045 0.047 0.046 0.051
------ ------ ------ ------ ------
Total from Investment Operations................. 0.042 0.045 0.047 0.046 0.051
------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income............. (0.042) (0.045) (0.047) (0.046) (0.051)
------ ------ ------ ------ ------
Total Distributions.............................. (0.042) (0.045) (0.047) (0.046) (0.051)
------ ------ ------ ------ ------
Net Asset Value, End of Year..................... $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
TOTAL RETURN: 4.30% 4.59% 4.80% 4.71% 5.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)........... $293,776 $273,427 $206,604 $208,950 $177,395
Ratio of expenses to average net assets.......... 0.57% 0.71% 0.78% 0.79% 0.86%
Ratio of net income to average net assets........ 4.21% 4.50% 4.70% 4.61% 5.06%
Without management fee waiver:**
Ratio of expenses to average net assets....... 0.66%
Ratio of net income to average net assets..... 4.12%
</TABLE>
- ------------------
See footnotes on page 13.
11
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------- --------
YEAR ENDED DECEMBER 31, 4/22/96* 5/27/99*
-------------------------------- to to
1999 1998 1997 12/31/96 12/31/99
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Period..................... $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income.................................... 0.032 0.035 0.037 0.025 0.022
------ ------ ------ ------ ------
Total from Investment Operations......................... 0.032 0.035 0.037 0.025 0.022
------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income..................... (0.032) (0.035) (0.037) (0.025) (0.022)
------ ------ ------ ------ ------
Total Distributions...................................... (0.032) (0.035) (0.037) (0.025) (0.022)
------- ------- ------- ------- ------
Net Asset Value, End of Period........................... $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
TOTAL RETURN: 3.26% 3.56% 3.77% 2.44% 2.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)................. $42,612 $24,189 $10,858 $2,493 $5,305
Ratio of expenses to average net assets.................. 1.57% 1.71% 1.78% 1.78%+ 1.25%+
Ratio of net income to average net assets................ 3.21% 3.50% 3.70% 3.58%+ 3.64%+
Without management fee waiver:**
Ratio of expenses to average net assets............... 1.66% 1.35%+
Ratio of net income to average net assets............. 3.12% 3.54%+
</TABLE>
- ------------------
See footnotes on page 13.
12
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS D
---------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Year.......... $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income....................... 0.032 0.035 0.037 0.036 0.040
------ ------ ------ ------ ------
Total from Investment Operations............ 0.032 0.035 0.037 0.036 0.040
------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income........ (0.032) (0.035) (0.037) (0.036) (0.040
------ ------ ------ ------ ------
Total Distributions......................... (0.032) (0.035) (0.037) (0.036) (0.040)
------ ------ ------ ------ ------
Net Asset Value, End of Year................ $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
TOTAL RETURN: 3.26% 3.56% 3.77% 3.67% 4.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)...... $29,078 $52,243 $24,110 $22,309 $14,554
Ratio of expenses to average net assets..... 1.57% 1.71% 1.78% 1.79% 1.90%
Ratio of net income to average net assets... 3.21% 3.50% 3.70% 3.61% 4.02%
Without management fee waiver:**
Ratio of expenses to average net assets.. 1.66%
Ratio of net income to average net assets 3.12%
</TABLE>
- ------------------
* Commencement of offering of shares.
** The Manager, at its discretion, waived a portion of its fees for the period
ended December 31, 1999.
+ Annualized.
See Notes to Financial Statements.
13
<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
December 31, 1999, the related statements of operations for the year then ended
and of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for 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
December 31, 1999, 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 referred to
above present fairly, in all material respects, the financial position of
Seligman Cash Management Fund, Inc. as of December 31, 1999, 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
February 4, 2000
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 Advisors, 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>
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
Director, Conoco Inc.
John E. Merow 2,4
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Director, New York Presbyterian Hospital
Betsy S. Michel 2,4
Trustee, The Geraldine R. Dodge Foundation
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, KeySpan Energy Corporation
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, ICI Mutual Insurance Company
Member of the Board of Governors,
Investment Company Institute
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
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
15
