================================================================================
To the Shareholders
- --------------------------------------------------------------------------------
Seligman Growth Fund completed the first six months of 1995 with the net asset
value of Class A shares at $5.10 on June 30, up from $4.75 at March 31, and
$4.54 at December 31, 1994, and the net asset value of Class D shares at $4.89
per share, up from $4.57 and $4.38, respectively, for the same periods. Total
returns for the three- and six-month periods were 7.37% and 12.34%,
respectively, for Class A shares, and 7.00% and 11.64%, respectively, for Class
D shares, which compares to the 9.55% and 20.21% total returns of the Standard &
Poor's 500 Composite Stock Price Index (S&P 500) for the same periods. Although
the S&P 500, which is comprised of stocks of many different companies from a
variety of sectors, performed favorably, it is important to note that only a few
sectors of the market, notably technology and financial, were good performers,
and only a handful of stocks consistently performed better than the S&P 500
itself. (Total return reflects change in net asset value and assumes any
distributions paid within the period are reinvested in additional shares. Class
A returns do not, however, reflect the effect of the maximum initial sales
charge of 4.75%, and Class D returns do not reflect the effect of the 1%
contingent deferred sales load.)
For both Class A and D shares, net realized gain per share from investment
transactions for the six months totaled $0.44. At June 30, net unrealized gain
per share totaled $0.85. Longer-term performance results appear on page 2 of
this report.
After four years of expansion, the recent stream of economic reports shows
that the long awaited slowdown is under way. The Federal Reserve Board (FRB),
concerned that growth at an accelerated rate would swell inflationary pressures,
increased short-term interest rates seven times, beginning in early 1994.
However, evidence of this current slowdown and moderate inflation led the FRB to
lower rates in early July--the first decrease in three years.
In the financial markets, with signs pointing toward a slowing economy and
prospects favoring declining interest rates, the bond market rallied this past
quarter. Investor demand for equities also continued to be strong, as shown by
the Dow Jones Industrial Average moving to new highs and all broad market equity
indices posting positive returns.
Looking ahead, we believe the economy is likely to regain strength later
this year as consumers respond to lower interest rates, exports are stimulated
by a weaker dollar, and business capital spending remains strong.
Since we last reported, your Manager broadened the Fund's technology
exposure by taking profits in some high-performing stocks, such as Applied
Materials, and employing the proceeds in selected networking issues such as
Cisco Systems. Additionally, a sizable position in IBM gives your Fund's
technology holdings a more conservative cast.
Your Manager further reduced the cyclical area, notably auto-related and
retail stocks, and added to stocks of companies with prospects for consistent
earnings growth in a slow economy, including Pfizer and Philip Morris. Your
Manager is optimistic about your Fund's future performance and believes the Fund
provides good value, and appreciation potential, in light of well-above-average
underlying earnings growth.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
August 4, 1995
<PAGE>
================================================================================
SELIGMAN GROWTH FUND, INC.
- --------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES*
During Past Three Months
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/95
- --------- -------- ---------
Amgen..................... 100,000 100,000
Boeing.................... 125,000 125,000
Circus Circus Enterprises. 100,000 100,000
Cisco Systems............. 175,000 175,000
Citicorp.................. 175,000 175,000
Computer Software......... 50,000 50,000
DSC Communications........ 175,000 175,000
Enron..................... 150,000 150,000
General Electric.......... 150,000 150,000
Schering-Plough........... 150,000 200,000 +
HOLDINGS
REDUCTIONS DECREASE 6/30/95
- --------------- -------- ---------
Century Telephone Enterprises 200,000 --
Columbia/HCA Healthcare... 150,000 200,000
Forest Laboratories....... 100,000 --
Harley-Davidson........... 300,000 200,000
Home Depot................ 150,000 100,000
Lam Research.............. 75,000 75,000
Medtronic................. 75,000 25,000
Merck..................... 100,000 --
Nordstrom................. 150,000 150,000
U.S. Healthcare........... 100,000 --
* Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
+ Includes 50,000 shares received as a result of a 2-for-1 stock split.
MAJOR PORTFOLIO HOLDINGS
at June 30, 1995
SECURITY VALUE
- ---------- ------------
Intel.................................... $17,410,938
American International Group............. 17,100,000
First Data............................... 12,796,875
Pfizer................................... 11,546,875
Interpublic Group of Companies........... 11,250,000
Hospitality Franchise Systems............ 10,387,500
United Healthcare........................ 10,343,750
Citicorp................................. 10,128,125
Motorola................................. 10,068,750
General Motors (Class E)................. 9,787,500
LONG-TERM INVESTMENT RESULTS
AVERAGE ANNUAL TOTAL RETURNS
June 30, 1995
Class A*
ONE FIVE TEN
YEAR YEARS YEARS
----- ------ ------
With Sales Charge 12.74% 8.82% 11.58%
Without Sales Charge 18.37 9.87 12.12
Class D**
SINCE
ONE INCEPTION
YEAR 5/3/93
----- ---------
With CDSL 15.83% n/a
Without CDSL 16.83 7.65%
* The maximum initial sales charge for Class A shares is 4.75%. No adjustment
was made to performance for periods prior to the commencement date, January
1, 1993, for the continuing Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% on an annual basis of average daily net
assets of Class A shares.
** The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL") imposed
on certain shares redeemed within one year of purchase.
- --------------------------------------------------------------------------------
These rates of return reflect changes in prices and assume that all
distributions within the period are reinvested in additional shares. The rates
of return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS June 30, 1995
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
COMMON STOCKS 97.8%
AEROSPACE 1.4%
Boeing........................ 125,000 $ 7,828,125
------------
AUTOMOTIVE AND RELATED 2.3%
Autoliv (ADRs)+*.............. 50,000 2,678,125
Echlin........................ 150,000 5,212,500
Harley-Davidson............... 200,000 4,875,000
------------
12,765,625
------------
BUILDING AND CONSTRUCTION 0.2%
Wolseley...................... 200,000 1,106,583
------------
BUSINESS SERVICES 9.5%
Alco Standard................. 75,000 5,990,625
Asatsu........................ 27,000 863,821
First Data.................... 225,000 12,796,875
General Motors (Class E)...... 225,000 9,787,500
Interpublic Group of Companies 300,000 11,250,000
Reynolds & Reynolds (Class A). 200,000 5,887,500
SunGard Data Systems*......... 125,000 6,562,500
------------
53,138,821
------------
CHEMICALS 2.3%
Air Products & Chemicals...... 150,000 8,362,500
Bayer AG...................... 5,700 1,417,063
European Vinyls*.............. 45,300 2,112,420
Toyo Ink Manufacturing........ 119,000 660,292
------------
12,552,275
------------
CONSUMER GOODS AND SERVICES 6.1%
Coca-Cola..................... 125,000 7,968,750
Gillette...................... 200,000 8,925,000
PepsiCo....................... 175,000 7,984,375
Procter & Gamble.............. 125,000 8,984,375
------------
33,862,500
------------
DRUGS AND HEALTH CARE 13.5%
Amgen*........................ 100,000 8,037,500
Arjo.......................... 50,000 440,217
Cardinal Health............... 40,000 1,890,000
Columbia/HCA Healthcare....... 200,000 8,650,000
Cordis*....................... 47,200 3,162,400
Genzyme*...................... 75,000 3,009,375
Johnson & Johnson............. 100,000 6,762,500
Medtronic..................... 25,000 1,928,125
Oxford Health Plans*.......... 50,000 2,350,000
PacifiCare Health Systems
(Class B)*................. 114,000 5,799,750
Pfizer........................ 125,000 11,546,875
Protein Design Laboratories*.. 125,000 2,609,375
Schering-Plough............... 200,000 8,825,000
United Healthcare ............ 250,000 10,343,750
------------
75,354,867
------------
ELECTRONICS 0.6%
Farnell Electronics........... 160,000 1,617,461
Sensormatic Electronics....... 50,000 1,775,000
------------
3,392,461
------------
ENERGY 1.4%
Enron......................... 150,000 5,268,750
Huaneng Power International
(ADRs)*.................... 73,000 1,341,375
YPF Sociedad Anonima (ADRs)... 75,000 1,415,625
------------
8,025,750
------------
FINANCIAL SERVICES 12.8%
American International Group.. 150,000 17,100,000
Citicorp...................... 175,000 10,128,125
Den Norske Bank*.............. 850,000 2,304,570
First USA..................... 100,000 4,437,500
General Re.................... 50,000 6,693,750
Green Tree Financial.......... 200,000 8,875,000
Internationale Nederlanden
Bank....................... 33,825 1,872,248
MGIC Investment............... 150,000 7,031,250
Norwest....................... 150,000 4,312,500
UTD Overseas Bank............. 228,000 2,154,331
Wells Fargo................... 35,000 6,308,750
------------
71,218,024
------------
FOOD AND FOOD SERVICES 1.0%
McDonald's.................... 150,000 5,868,750
------------
INDUSTRIAL EQUIPMENT 4.2%
BBC Brown Boverie............. 2,000 2,073,314
FKI Babcock................... 700,000 1,774,679
FKI Babcock (Rights)*......... 175,000 93,477
Foster Electric*.............. 98,000 456,998
General Electric.............. 150,000 8,456,250
General Instrument*........... 75,000 2,878,125
Glory Kogyo................... 25,000 770,321
Horiba Instruments............ 76,000 879,287
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS (continued) June 30, 1995
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
Illinois Tool Works........... $ 75,000 $ 4,125,000
Keyence....................... 6,500 729,001
Sodick........................ 6,000 43,846
Tsudakoma..................... 140,000 899,120
------------
23,179,418
------------
LEISURE AND ENTERTAINMENT 9.9%
Capital Cities/ABC............ 75,000 8,100,000
Carnival (Class A)............ 100,000 2,337,500
Circus Circus Enterprises*.... 100,000 3,525,000
Disney, Walt.................. 125,000 6,953,125
Granada Group................. 230,000 2,229,749
Hospitality Franchise Systems* 300,000 10,387,500
MGM Grand..................... 200,000 5,475,000
Mirage Resorts*............... 225,000 6,890,625
Scandinavian Broadcast System. 125,000 2,484,375
Viacom (Class B).............. 150,000 6,956,250
------------
55,339,124
------------
METALS 0.2%
Sumitomo Sitix................ 82,000 880,940
------------
PRINTING AND PUBLISHING 0.4%
Reed Elsevier................. 200,000 2,363,883
------------
RETAIL TRADE 5.2%
Aiya.......................... 40,000 481,672
Barnes & Noble*............... 175,000 5,950,000
Eckerd*....................... 100,000 3,200,000
Home Depot.................... 100,000 4,062,500
Hornbach Baumarkt............. 2,500 1,690,777
Nordstrom..................... 150,000 6,196,875
Office Depot*................. 100,000 2,812,500
Renown*....................... 240,000 708,341
Stop & Shop*.................. 150,000 3,843,750
------------
28,946,415
------------
STEEL 0.2%
Pohang Iron & Steel (ADSs).... 40,000 1,180,000
------------
TECHNOLOGY 18.7%
Applied Materials*............ 75,000 6,487,500
Cisco Systems*................ 175,000 8,848,438
Computer Software............. 50,000 3,387,500
EMC*.......................... 300,000 7,275,000
Hewlett-Packard............... 50,000 3,725,000
Intel......................... 275,000 17,410,938
International Business
Machines................... 100,000 9,600,000
Lam Research*................. 75,000 4,790,625
Linear Technology............. 100,000 6,575,000
Microsoft*.................... 85,000 7,687,188
Oracle Systems*............... 225,000 8,676,562
Silicon Graphics*............. 125,000 4,984,375
Tektronix..................... 50,000 2,462,500
3Com*......................... 75,000 5,025,000
Xilinx*....................... 75,000 7,040,625
------------
103,976,251
------------
TELECOMMUNICATIONS 4.3%
American Telephone
& Telegraph................ 50,000 2,656,250
DSC Communications*........... 175,000 8,148,437
Indosat (ADSs)................ 15,500 592,875
Motorola...................... 150,000 10,068,750
Telecom Italia................ 600,000 1,628,021
Telefonos de Mexico, S.A.
(ADRs)..................... 30,000 888,750
------------
23,983,083
------------
TOBACCO 1.7%
Philip Morris................. 125,000 9,296,875
------------
TRANSPORTATION 0.6%
Jurong Shipyard............... 180,000 1,288,475
Kvaerner Industries........... 36,815 1,613,775
Namura Shipbuilding........... 107,000 366,330
------------
3,268,580
------------
MISCELLANEOUS 1.3%
Land and General Berhad....... 500,000 1,671,452
Tokyo Style................... 2,000 30,222
Tyco International............ 100,000 5,400,000
------------
7,101,674
------------
TOTAL INVESTMENTS 97.8%
(Cost $451,636,553) ............ 544,630,024
OTHER ASSETS LESS
LIABILITIES 2.2% .............. 12,523,443
------------
NET ASSETS 100.0% ................. $557,153,467
============
- ------------------
* Non-income producing security.
+ Rule 144A security.
See notes to financial statements.
<PAGE>
================================================================================
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value:
Common stocks (cost $451,636,553) ............................. $544,630,024
Cash ............................................................ 3,412,699
Receivable for securities sold .................................. 14,616,934
Receivable for dividends and interest ........................... 648,457
Investment in, and expenses prepaid to, shareholder service agent 271,032
Receivable for Capital Stock sold ............................... 158,381
Other ........................................................... 56,065
------------
Total Assets .................................................... 563,793,592
------------
LIABILITIES:
Payable for securities purchased ................................ 5,242,859
Payable for Capital Stock repurchased ........................... 577,756
Accrued expenses, taxes, and other .............................. 819,510
------------
Total Liabilities ............................................... 6,640,125
------------
Net Assets ...................................................... $557,153,467
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($1 par value; 150,000,000 shares
109,261,911 authorized; shares outstanding):
Class A ....................................................... $108,484,892
Class D ....................................................... 777,019
Additional paid-in capital ...................................... 306,362,635
Undistributed net investment income ............................. 701,164
Undistributed net realized gain ................................. 47,833,983
Net unrealized appreciation of investments ...................... 89,017,495
Net unrealized appreciation on translation of assets and
liabilities denominated in foreign currencies ............... 3,976,279
------------
Net Assets ...................................................... $557,153,467
============
NET ASSET VALUE PER SHARE:
Class A ($553,352,723 / 108,484,892 shares) ..................... $5.10
=====
Class D ($3,800,744 / 777,019 shares) ........................... $4.89
=====
- ------------------
See notes to financial statements.
<PAGE>
================================================================================
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $112,584) $ 2,985,482
Interest ............................................ 287,855
-----------
Total investment income ............................. $ 3,273,337
EXPENSES:
Management fee ...................................... 1,289,590
Distribution and service fees ....................... 506,076
Shareholder account services ........................ 454,112
Shareholder reports and communications .............. 59,749
Registration ........................................ 51,259
Auditing and legal fees ............................. 46,428
Directors' fees and expenses ........................ 25,165
Miscellaneous ....................................... 28,692
-----------
Total expenses ...................................... 2,461,071
-----------
Net investment income ............................... 812,266
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments ..................... 47,700,685
Net realized gain from foreign currency
transactions ....................................... 450,024
Net change in unrealized appreciation of
investments ........................................ 10,234,218
Net change in unrealized appreciation on translation
of assets and liabilities denominated in foreign
of assets and ................................... 3,482,837
-----------
Net gain on investments and foreign currency transactions ........ 61,867,764
-----------
Increase in net assets from operations ........................... $62,680,030
===========
- ----------------
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
================================================================================
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income........................................................ $ 812,266 $ 747,696
Net realized gain on investments............................................. 47,700,685 51,360,333
Net realized gain (loss) from foreign currency transactions.................. 450,024 (32,375)
Net change in unrealized appreciation of investments......................... 10,234,218 (75,155,232)
Net change in unrealized appreciation on translation of assets and
liabilities denominated in foreign currencies................................ 3,482,837 493,442
----------- ------------
Increase (decrease) in net assets from operations............................ 62,680,030 (22,586,136)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income-- Class A.............................................. -- (1,043,314)
Net realized gain on investments:
Class A.................................................................... -- (52,165,692)
Class D.................................................................... -- (180,695)
----------- ------------
Decrease in net assets from distributions.................................... -- (53,389,701)
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
-----------------------------------
SIX MONTHS
ENDED YEAR ENDED
CAPITAL SHARE TRANSACTIONS: JUNE 30, 1995 DECEMBER 31, 1994
------------- -----------------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A................................ 1,260,703 1,199,567 6,029,416 6,135,690
Class D................................ 467,500 183,876 2,149,974 922,899
Investment of dividends-- Class A........ -- 164,106 -- 733,553
Exchanged from associated Funds:
Class A................................ 2,535,398 4,032,992 12,034,506 20,642,340
Class D................................ 24,311 14,699 110,616 70,526
Shares issued in payment of gain distributions:
Class A................................ -- 9,228,545 -- 41,252,296
Class D................................ -- 40,305 -- 173,521
---------- ----------- ------------ ------------
Total.................................... 4,287,912 14,864,090 20,324,512 69,930,825
---------- ----------- ------------ ------------
Cost of shares repurchased:
Class A................................ (4,690,654) (9,117,651) (22,449,737) (46,398,985)
Class D................................ (46,505) (33,070) (212,209) (164,282)
Exchanged into associated Funds:
Class A................................ (3,711,221) (4,857,920) (17,952,020) (24,834,019)
Class D................................ (66,050) (37,097) (306,956) (176,395)
---------- ----------- ------------ ------------
Total.................................... (8,514,430) (14,045,738) (40,920,922) (71,573,681)
---------- ----------- ------------ ------------
Increase (decrease) in net assets from
capital share transactions............ (4,226,518) 818,352 (20,596,410) (1,642,856)
========== ========== ------------ ------------
Increase (decrease) in net assets............................................ 42,083,620 (77,618,693)
NET ASSETS:
Beginning of period.......................................................... 515,069,847 592,688,540
------------ ------------ ------------
End of period (including undistributed net investment income and dividends
in excess of net investment income of $701,164 and $(196,776), respectively) $557,153,467 $515,069,847
============ ============ ============
</TABLE>
- --------------
See notes to financial statements.
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Growth Fund, Inc. (the "Fund") offers two classes of shares. All
shares existing prior to May 3, 1993, were classified as Class A shares. Class A
shares are sold with an initial sales charge of up to 4.75% and a continuing
service fee of up to 0.25% on an annual basis. Class D shares are sold without
an initial sales charge but are subject to a distribution fee of up to 0.75% and
a service fee of up to 0.25% on an annual basis, and a contingent deferred sales
load ("CDSL") of 1% imposed on certain redemptions made within one year of
purchase. The two 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 class
expenses and has exclusive voting rights with respect to any matter to which a
separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. Investments in stocks and U.S. Government securities are valued at current
market values or, in their absence, at fair value determined in accordance
with procedures approved by the Board of Directors. Securities traded on
national exchanges are valued at last sales prices or, in their absence and
in the case of over-the-counter securities, a mean of bid and asked prices.
Short-term holdings maturing in 60 days or less are valued at amortized
cost.
b. The books and records of the Fund are maintained in U.S. dollars. The market
value of investment securities and other assets and liabili-ties denominated
in foreign currencies are translated into U.S. dollars at the closing daily
rate of exchange as reported by a pricing service. Purchases and sales of
investment securities, income, and expenses are translated into U.S. dollars
at the rate of exchange prevailing on the respective dates of such
transactions.
The Fund separates that portion of the results of operations resulting
from changes in the foreign exchange rates from the fluctuations arising
from changes in the market prices of securities held in the portfolio.
Similarly, the Fund separates the effect of changes in foreign exchange
rates from the fluctuations arising from changes in the market prices of
portfolio securities sold during the period.
c. There is no provision for federal income or excise tax. The Fund has elected
to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized.
d. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Dividends receivable and payable are recorded on ex-dividend
dates. Interest income is recorded on an accrual basis.
e. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares based
upon the relative value of shares of each class. Class-specific expenses,
which include distribution and service fees and any other items that are
specifically attributed to a particular class, are charged directly to such
class.
f. The treatment for financial statement purposes of distributions made during
the period from net investment income or net realized gains may differ from
their ultimate treatment for federal income tax purposes. These differences
are caused primarily by differences in the timing of the recognition of
certain components of income, expense, or capital gain, and the
recharacterization of foreign exchange gains or losses to either ordinary or
realized capital gain for federal income tax purposes. Where such
differences are permanent in nature, they are reclassified in the components
of net assets based on their ultimate characterization for federal income
tax purposes. Any such reclassifications will have no effect on net assets,
results of operations, or net asset value per share of the Fund.
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended June 30, 1995, amounted to $358,606,440
and $370,057,675, respectively.
At June 30, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio
securities, including the effects of foreign currency translations, amounted to
$102,499,168 and $9,505,697, respectively.
4. J. & W. Seligman & Co. Incorporated (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 payable
monthly, equal to a per annum percentage of the Fund's daily net assets. The
management fee is calculated on a sliding scale of 0.50% to 0.44%, based on
average daily net assets of all investment companies managed by the Manager. The
management fee for the six months ended June 30, 1995, was equivalent to an
annual rate of 0.49% of the average daily net assets of the Fund. Seligman
Henderson Co. (the "Subadviser"), a 50% owned affiliate of the Manager, is
entitled to a portion of the Manager's fee for acting as Subadviser for certain
of the international investments of the Fund.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of Fund shares and an affiliate of the Manager, received
concessions of $9,815 from sales of Class A shares after commissions of $76,994
paid to dealers.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares under which service organizations
can enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis, payable quarterly, of the average daily net
assets of the Class A shares attributable to the particular service
organizations for providing personal services and/or the maintenance of
shareholder accounts. The Distributor charges such fees to the Fund pursuant to
the Plan. For the six months ended June 30, 1995, fees paid aggregated $492,992,
or 0.19% per annum of the average daily net assets of Class A shares.
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class D shares for which the organizations are responsible, and
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. For the six months ended June 30, 1995,
fees paid amounted to $13,084, or 1% per annum of the average daily net assets
of Class D shares.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions occurring within one year of purchase. For the six months ended June
30, 1995, such charges amounted to $819.
For the six months ended June 30, 1995, Seligman Services, Inc., an
affiliate of the Manager, received commissions of $5,302 from sales of Class A
shares of the Fund. Seligman Services, Inc. also received $884 from the
Distributor for the sale of Class D shares of the Fund.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $446,057 for shareholder account services.
The Fund's investment in Seligman Data Corp. is recorded at a cost of $43,170.
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Certain officers and directors of the Fund are officers or directors of the
Manager, the Subadviser, the Distributor, Seligman Services, Inc., and/or
Seligman Data Corp.
Fees of $14,000 were incurred by the Fund for legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1995 of $206,213 is
included in other liabilities. Deferred fees and the related accrued interest
are not deductible for federal income tax purposes until such amounts are paid.
5. Class-specific expenses charged to Class A and Class D during the six months
ended June 30, 1995, which are included in the corresponding captions of the
Statement of Operations, were as follows:
CLASS A CLASS D
--------- ---------
Distribution and service fees..... $492,992 $13,084
Registration...................... 21,208 4,946
Shareholder reports and
communications................. 14,269 542
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from the Fund's beginning net asset value to
the ending net asset value so that they can understand what effect the
individual items have on their investment, assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item, as disclosed in the financial statements,
to their equivalent per share amounts.
The total return based on net asset value measures the Fund's performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset value,
and then sold their shares at the net asset value per share on the last day of
the period. The total return computations do not reflect any sales charges
investors may incur in purchasing or selling shares of the Fund. The total
returns for periods of less than one year are not annualized.
<TABLE>
<CAPTION>
CLASS A CLASS D
---------------------------------------------------- -------------------------------
SIX SIX
MONTHS YEAR ENDED DECEMBER 31 MONTHS YEAR 5/3/93*
ENDED ---------------------------------------- ENDED ENDED TO
6/30/95** 1994** 1993 1992 1991 1990 6/30/95** 12/31/94** 12/31/93
--------- ----- ---- ---- ---- ---- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period.................. $4.54 $5.26 $6.04 $5.95 $4.57 $5.10 $4.38 $5.23 $5.67
----- ----- ----- ----- ----- ----- ----- ----- -----
Net investment income (loss).. .01 .01 .01 .03 .04 .10 (.02) (.12) (.03)
Net realized and unrealized
investment gain (loss)..... .51 (.22) .35 .64 1.70 (.36) .49 (.23) .72
Net realized and unrealized gain
on foreign currency
transactions .............. .04 -- -- -- -- -- .04 -- --
----- ----- ----- ----- ----- ----- ----- ----- -----
Increase (decrease) from
investment operations...... .56 (.21) .36 .67 1.74 (.26) .51 (.35) .69
Dividends paid................ -- (.01) (.01) (.03) (.04) (.10) -- -- --
Distributions from
net gain realized.......... -- (.50) (1.13) (.55) (.32) (.17) -- (.50) (1.13)
Net increase (decrease) in
net asset value............ .56 (.72) (.78) .09 1.38 (.53) .51 (.85) (.44)
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period $5.10 $4.54 $5.26 $6.04 $5.95 $4.57 $4.89 $4.38 $5.23
===== ===== ===== ===== ===== ===== ===== ===== =====
TOTAL RETURN BASED
ON NET ASSET VALUE: 12.34% (3.84)% 6.20% 11.30% 38.45% (5.16)% 11.64% (6.56)% 12.40%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .92%+ .90% .89% .77% .76% .71% 2.13%+ 2.93% 2.17%+
Net investment income (loss)
to average net assets...... .31%+ .14% .18% .49% .77% 2.04% (.86)%+ (2.34)% (1.03)%+
Portfolio turnover............ 69.42% 93.59% 105.64% 46.96% 12.60% 26.39% 69.42% 93.59% 105.64%++
Net assets, end of period
(000's omitted)............ $553,353 $513,328$591,491 $614,860 $598,423 $478,063 $3,801 $1,742 $1,197
- ----------------
*Commencement of offering of Class D shares.
**Per share amounts for the six months ended June 30, 1995, and for the year
ended December 31, 1994, are calculated based on average shares outstanding.
+Annualized.
++For the year ended December 31, 1993.
See notes to financial statements.
</TABLE>
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Growth Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Growth Fund, Inc. as of June 30, 1995,
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, 1994, and the financial highlights for 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, 1995 by correspondence with the Fund's custodians and brokers; where replies
were not received from brokers, we performed other auditing procedures. 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 Growth
Fund, Inc. as of June 30, 1995, 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 & Touch LLP
DELOITTE & TOUCHE LLP
New York, New York
August 4, 1995
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin 2, 4
Dean, Fletcher School of Law and
Diplomacy at Tufts University
Director, USLIFE Corporation
Alice S. Ilchman 3, 4
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Chairman, The Rockefeller Foundation
Frank A. McPherson 2, 4
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Chairman and Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
Betsy S. Michel 2, 4
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3, 4
Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
James Q. Riordan 3, 4
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Ronald T. Schroeder 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3, 4
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2, 4
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
Managing Director, J. & W. Seligman & Co. Incorporated
- ---------------
Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
<PAGE>
================================================================================
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Ronald T. Schroeder
President
David Watts
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- --------------------------------------------------------------------------------
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
Subadviser
Seligman Henderson Co.
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
<PAGE>
Seligman Financial Services, Inc.
an affiliate of
[LOGO]
J. & W. Seligman & Co.
incorporated
established 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Growth Fund, Inc., which contains information about the sales charges,
management fee, and other costs. Please read the prospectus carefully before
investing or sending money.
EQGR3b 6/95
- --------------------------------------------------------------------------------
MID-YEAR REPORT
- --------------------------------------------------------------------------------
SELIGMAN
GROWTH
FUND, INC.
- --------------------------------------------------------------------------------
June 30, 1995
[LOGO]
- --------------------------------------------------------------------------------
A Growth Stock Fund
Established in 1937
