Supplement, dated August 11, 2000, to the
Statement of Additional Information, dated May 1, 2000,
of Seligman Value Fund Series, Inc. (the "Series")
on behalf of its
Seligman Large-Cap Value Fund
Seligman Small-Cap Value Fund
(collectively, the "Funds")
Effective August 11, 2000, the following disclosure replaces (a) the last
two full paragraphs in the discussion of "Calculation of Performance Data" on
page 28 and (b) the first full paragraph under the section "General Information
-- Custodian" also on page 28 of the Series' Statement of Additional
Information:
Page 28
From time to time, reference may be made in advertisements, sales literature or
other promotional material (collectively, "Promotional Material") to performance
information, including mutual fund rankings prepared by independent reporting
services which monitor the performance of mutual funds, including but not
limited to Lipper Analytical Services, Inc. and Morningstar, Inc. In calculating
the total return of each Fund's Class A, Class B, Class C, and Class D shares,
the Lipper analysis assumes investment of all dividends and distributions paid,
but does not take into account applicable sales charges. Morningstar's rankings
are calculated using a fund's average annual returns for a certain period and a
risk factor that reflects a fund's performance relative to three-month Treasury
Bill monthly returns. Morningstar's ratings range from five stars (highest) to
one star (lowest) and represent Morningstar's assessment of the historical risk
level and total return of a fund for 3-, 5-, and 10-year periods and, on an
overall basis, based on weighted-average of those periods. Ratings are not
absolute and do not represent future performance results.
Each Fund's Promotional Material may disclose (i) the top ten holdings included
in the Fund's portfolio holdings, (ii) market sectors and statistical data
describing portfolio composition, (iii) discussions of general economic or
financial principals, (iv) discussions of general economic trends, (v)
descriptions of investment strategies for each Fund (vi) descriptions or
comparisons of various savings and investment products, which may not include a
Fund and (vii) comparisons of investment products (including a Fund) with
relevant market or industry indices or appropriate benchmarks. Each Fund may
also include calculations, such as hypothetical compounding examples, which
describe hypothetical investment results. Such performance examples will be
based on an express set of assumptions and are not indicative of the future
performance of the Fund.
From time to time, each Fund's Promotional Materials may portray the historical
returns of various asset classes. Such presentations will typically compare the
average annual rates of return of inflation, U.S. Treasury bills, bonds,
large-cap stocks, and small-cap stocks. There are important differences between
each of these investments that should be considered in viewing any such
comparison. The market value of stocks will fluctuate with market conditions,
and small-stock prices generally will fluctuate more than large-stock prices.
Stocks are generally more volatile than bonds. In return for this volatility,
stocks have generally performed better than bonds or cash over time. Bond prices
generally will fluctuate inversely with interest rates and other market
conditions, and the prices of bonds with longer maturities generally will
fluctuate more than those of shorter-maturity bonds. Interest rates for bonds
may be fixed at the time of issuance, and payment of principal and interest may
be guaranteed by the issuer and, in the case of U.S. Treasury obligations,
backed by the full faith and credit of the U.S. Treasury.
Each Fund may also refer in Promotional Material to selections from editorials
or articles about the Fund, including reprints of comments, listings and columns
in the financial and other press, the sources of which include BARRON'S,
BUSINESS WEEK, CDA/WIESENBERGER MUTUAL FUNDS INVESTMENT REPORT, CHRISTIAN
SCIENCE MONITOR, FINANCIAL PLANNING, FINANCIAL TIMES, FINANCIAL WORLD, FORBES,
FORTUNE, INDIVIDUAL INVESTOR, INVESTMENT ADVISOR, INVESTORS BUSINESS DAILY,
KIPLINGER'S, LOS ANGELES TIMES, MONEY MAGAZINE, MORNINGSTAR, INC., PENSION AND
INVESTMENTS, SMART MONEY, THE NEW YORK TIMES, THE WALL STREET JOURNAL, USA
TODAY, U.S. NEWS AND WORLD REPORT, WORTH MAGAZINE, WASHINGTON POST and YOUR
MONEY.
Each Fund's Promotional Material may make reference to a Fund's "Beta,"
"Standard Deviation," or "Alpha." Beta measures the volatility of a Fund, as
compared to that of the overall market. Standard deviation measures how widely
the Fund's performance has varied from its average performance, and is an
indicator of the Fund's potential for volatility. Alpha measures the difference
between the returns of a Fund and the returns of the market, adjusted for
volatility.
Page 28
"Custodian. State Street Bank & Trust Company, 801 Pennsylvania, Kansas City,
Missouri 64105, serves as custodian of the Series. It also maintains, under the
general supervision of Seligman, the accounting records and determines the net
asset value for each Fund of the Series."
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