File No. 2-86008
811-3828
As filed with the Securities and Exchange Commission on January __, 1997
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. __ [ ]
Post-Effective Amendment No. 30 [X]
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 29 [X]
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SELIGMAN MUNICIPAL FUND SERIES, INC.
(Exact name of registrant as specified in charter)
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100 PARK AVENUE, NEW YORK, NEW YORK 10017
(Address of principal executive offices)
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Registrant's Telephone Number: 212-850-1864 or
Toll-Free 800-221-2450
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THOMAS G. ROSE, Treasurer
100 Park Avenue
New York, New York 10017
(Name and address of agent for service)
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It is proposed that this filing will become effective (check the
appropriate box).
[X] immediately upon filing pursuant to paragraph (b) of rule 485
[ ] on ____(date)______ pursuant to paragraph (b) of rule 485
[ ] 60 days after filing pursuant to paragraph (a)(i) of rule 485
[ ] on (date) pursuant to paragraph (a)(i) of rule 485
[ ] 75 days after filing pursuant to paragraph (a)(ii) of rule 485
[ ] on (date) pursuant to paragraph (a)(ii) of rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Registrant has registered an indefinite amount of securities under the
Securities Act of 1933 pursuant to Rule 24f-2(a)(1) and a Rule 24f-2 Notice was
filed by Registrant for its fiscal year ended September 30, 1996 on November 26,
1996.
<PAGE>
<TABLE>
<CAPTION>
File No. 2-86008
CROSS REFERENCE SHEET
POST-EFFECTIVE AMENDMENT NO. 30
Pursuant to Rule 481(a)
Item in Part A of Form N-1A Location in Prospectus
--------------------------- ----------------------
<S> <C> <C>
1. Cover Page Cover Page
2. Synopsis Summary of Series Expenses
3. Condensed Financial Information Financial Highlights
4. General Description of Registrant Cover Page; Organization and Capitalization
5. Management of the Fund Management Services
5a. Management's Discussion of Fund Management Services
Performance
6. Capital Stock and Other Securities Organization and Capitalization
7. Purchase of Securities Being Offered Alternative Distribution System; Purchase of Shares; Administration,
Shareholder Services and Distribution Plan
8. Redemption or Repurchase Telephone Transactions; Redemption of Shares; Exchange Privilege; Further
Information About Transactions In The Funds
9. Pending Legal Proceedings Not Applicable
Item in Part B of Form N-1A Location in Statement of Additional Information
- --------------------------- -----------------------------------------------
10. Cover Page Cover Page
11. Table Of Contents Table Of Contents
12. General Information and History Investment Objectives, Policies and Risks; General Information; Appendix C
13. Investment Objectives and Policies Investment Objectives, Policies And Risks; Investment Limitations
14. Management of the Fund Directors and Officers; Management And Expenses
15. Control Persons and Principal Directors and Officers
Holders of Securities
16. Investment Advisory and Other Services Management And Expenses; Distribution Services
17. Brokerage Allocations Administration, Shareholder Services and Distribution Plan;
Portfolio Transactions
18. Capital Stock and Other Securities General Information
19. Purchase, Redemption and Pricing of Purchase and Redemption of Fund Shares; Valuation
Securities Being Offered
20. Tax Status Taxes; Appendix B
21. Underwriters Distribution Services
22. Calculation of Performance Data Performance Information
23. Financial Statements Financial Statements
</TABLE>
<PAGE>
================================================================================
PROSPECTUS
SELIGMAN MUNICIPAL FUND
SERIES, INC.
SELIGMAN MUNICIPAL
SERIES TRUST
SELIGMAN NEW JERSEY
MUNICIPAL FUND, INC.
SELIGMAN PENNSYLVANIA MUNICIPAL FUND SERIES
February 1, 1997
================================================================================
Seeking Income
Free From Regular Income Tax
SELIGMAN MUNICIPAL FUND
SERIES, INC.
SELIGMAN MUNICIPAL
SERIES TRUST
SELIGMAN NEW JERSEY
MUNICIPAL FUND, INC.
SELIGMAN PENNSYLVANIA
MUNICIPAL FUND SERIES
================================================================================
100 Park Avenue
New York, NY 10017
Table of Contents
Page
Summary of Series Expenses ................. 3
Financial Highlights ....................... 10
Alternative Distribution System ............ 18
Investment Objectives and Policies ......... 19
Management Services ........................ 27
Purchase of Shares ......................... 29
Telephone Transactions ..................... 33
Redemption of Shares ....................... 34
Administration, Shareholder Services
and Distribution Plans .................. 37
Exchange Privilege ......................... 38
Further Information about
Transactions in the Funds ............... 39
Dividends and Distributions ................ 40
Taxes ...................................... 40
Shareholder Information .................... 51
Advertising a Series' Performance .......... 52
Organization and Capitalization ............ 53
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH SUCH
OFFERING MAY NOT LAWFULLY BE MADE.
THIS PROSPECTUS IS INTENDED TO CONSTITUTE AN OFFER BY EACH FUND ONLY OF THE
SECURITIES OF WHICH IT IS THE ISSUER AND IS NOT INTENDED TO CONSTITUTE AN OFFER
BY ANY FUND OF THE SECURITIES OF ANY OTHER FUND WHOSE SECURITIES ARE ALSO
OFFERED BY THIS PROSPECTUS. NO FUND INTENDS TO MAKE ANY REPRESENTATION AS TO THE
ACCURACY OR COMPLETENESS OF THE DISCLOSURE IN THIS PROSPECTUS RELATING TO ANY
OTHER FUND.
MUNI-1 2/97
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
National Municipal Series, Colorado Municipal Series, Georgia Municipal Series,
Louisiana Municipal Series, Maryland Municipal Series, Massachusetts
Municipal Series, Michigan Municipal Series, Minnesota Municipal
Series, Missouri Municipal Series, New York Municipal Series,
Ohio Municipal Series, Oregon Municipal Series and
South Carolina Municipal Series
SELIGMAN MUNICIPAL SERIES TRUST
California Municipal High-Yield Series, California Municipal Quality Series,
Florida Municipal Series and North Carolina Municipal Series
SELIGMAN NEW JERSEY MUNICIPAL FUND, INC.
SELIGMAN PENNSYLVANIA MUNICIPAL FUND SERIES
100 Park Avenue o New York, NY 10017
New York Telephone: (212) 850-1864
Toll-Free Telephone: (800) 221-2450--all continental United States
February 1, 1997
This prospectus offers shares of nineteen different series (the "Series")
which include National Municipal Series (the "National Series") and twelve
individual state Series of Seligman Municipal Fund Series, Inc. (the "Municipal
Fund"), four individual state Series of Seligman Municipal Series Trust (the
"Municipal Trust"), Seligman New Jersey Municipal Fund, Inc. (the "New Jersey
Fund"), and Seligman Pennsylvania Municipal Fund Series (the "Pennsylvania Fund"
and collectively with the Municipal Fund, the Municipal Trust and the New Jersey
Fund, the "Funds"). Each of the Funds is a non-diversified, open-end management
investment company.
The Municipal Fund offers the following state Series: Colorado Municipal
Series, Georgia Municipal Series, Louisiana Municipal Series, Maryland Municipal
Series, Massachusetts Municipal Series, Michigan Municipal Series, Minnesota
Municipal Series, Missouri Municipal Series, New York Municipal Series, Ohio
Municipal Series, Oregon Municipal Series and South Carolina Municipal Series
(collectively, the "Municipal Fund State Series"). The Municipal Trust offers
the following state Series: California Municipal Quality Series, California
Municipal High-Yield Series, Florida Municipal Series and North Carolina
Municipal Series (collectively, the "Municipal Trust State Series", and together
with the Municipal Fund State Series, the New Jersey Fund and the Pennsylvania
Fund, the "Series").
This Prospectus sets forth concisely the information a prospective investor
should know about the Funds and each individual Series before investing. Please
read it carefully before you invest and keep it for future reference. Additional
information about the Funds, including Statements of Additional Information, has
been filed with the Securities and Exchange Commission. Statements of Additional
Information are available upon request and without charge by calling or writing
the Funds at the telephone numbers or the address set forth above. Each
Statement of Additional Information is dated the same date as this Prospectus
and is incorporated herein by reference in its entirety.
(continued on following page)
SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE
BOARD OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<PAGE>
The Municipal Fund's National Municipal Series seeks to provide to its
shareholders maximum income exempt from regular federal income taxes to the
extent consistent with preservation of capital and with consideration given to
opportunities for capital gain by investing in investment grade securities the
interest on which is exempt from regular federal income taxes. The investment
objective of each of the individual Municipal Fund State Series is to maximize
income exempt from regular federal income taxes and from personal income taxes
in that state, consistent with the preservation of capital and with
consideration given to opportunities for capital gain by investing in investment
grade municipal securities of the designated state, its political subdivisions,
municipalities and public authorities.
The Municipal Trust State Series, except for the California Municipal
High-Yield Series, each seek high income exempt from regular federal income
taxes and from personal income taxes in their respective state (other than
Florida which does not impose an individual income tax) consistent with
preservation of capital and with consideration given to capital gain, by
investing in municipal securities rated in the four highest rating categories,
except that the California Municipal Quality Series pursues its investment
objective by investing only in municipal securities rated in the three highest
rating categories of Moody's Investors Service, Inc. ("Moody's") or Standard &
Poor's Corporation ("S&P").
The California Municipal High-Yield Series seeks the maximum amount of
income exempt from regular federal income taxes and California personal income
taxes consistent with preservation of capital and with consideration given to
capital gain by investing primarily in California municipal securities that are
rated in the medium and lower rating categories of Moody's or S&P or which are
unrated. The Series may invest up to 100% of its portfolio in lower rated bonds,
commonly known as "junk bonds." Such securities generally offer a higher current
yield than those in the higher rating categories but also involve greater price
volatility and risk of loss of principal and income. The California Municipal
High-Yield Series invests primarily in high-yield, high risk securities and
therefore may not be suitable for all investors. Investors should carefully
assess the risks associated with an investment in this Series. See "Investment
Objectives and Policies--Seligman California Municipal High-Yield Series," in
this Prospectus.
The New Jersey Fund seeks to maximize income exempt from regular federal
income tax and New Jersey personal income tax consistent with preservation of
capital and with consideration given to opportunities for capital gain by
investing in "investment grade" New Jersey municipal securities. Investment
grade securities are rated within the four highest rating categories of
"Moody's" or "S&P". Throughout this Prospectus, the New Jersey gross income tax
is referred to as the New Jersey personal income tax.
The Pennsylvania Fund seeks to provide a high level of income exempt from
regular federal and Pennsylvania income taxes consistent with preservation of
capital by investing primarily in investment grade Pennsylvania municipal
securities. Capital appreciation is not a consideration in the selection of
investments. The Fund may also invest in Pennsylvania municipal securities that
are unrated but are believed by the Manager (as defined below) to be of
comparable quality to investment grade securities.
There can be no assurance that a Series will achieve its objective.
Investment advisory and management services are provided to the Funds by J.
& W. Seligman & Co. Incorporated (the "Manager") and each Fund's distributor is
Seligman Financial Services, Inc., an affiliate of the Manager. Each Series
offers two classes of shares. Class A shares are sold subject to an initial
sales load of up to 4.75% and an annual service fee currently charged at a rate
of up to .25% of the average daily net asset value of the Class A shares. Class
A shares purchased in an amount of $1,000,000 or more are sold without an
initial sales load but are subject to a contingent deferred sales load ("CDSL")
of 1% on redemptions within eighteen months of purchase. Class D shares are sold
without an initial sales load but are subject to a CDSL of 1% imposed on certain
redemptions within one year of purchase, an annual distribution fee of up to
.75% and an annual service fee of up to .25% of the average daily net asset
value of the Class D shares. Any CDSL payable upon redemption of shares will be
assessed on the lesser of the current net asset value or the original purchase
price of the shares redeemed. No CDSL will be imposed on shares acquired through
the reinvestment of dividends or distributions received from any class of
shares. See "Alternative Distribution System." Shares of the Series may be
purchased through any authorized investment dealer.
2
<PAGE>
SUMMARY OF SERIES EXPENSES
The purpose of this table is to assist investors in understanding the
various costs and expenses which shareholders of a Series bear directly or
indirectly. The sales load on Class A shares is a one-time charge paid at the
time of purchase of shares. Reductions in initial sales loads are available in
certain circumstances. Class A shares are not subject to an initial sales load
for purchases of $1,000,000 or more; however, such shares are subject to a CDSL,
a one time charge, only if the shares are redeemed within eighteen months of
purchase. The CDSL on Class D shares is a one-time charge paid only if shares
are redeemed within one year of purchase. For more information concerning
reduction in sales loads and for more complete descriptions of the various costs
and expenses see "Purchase of Shares," "Redemption of Shares" and "Management
Services" herein. Each Fund's Administration, Shareholder Services and
Distribution Plan, to which the caption "12b-1 Fees" relates is discussed under
"Administration, Shareholder Services And Distribution Plans" herein.
<TABLE>
<CAPTION>
NAT'L SERIES CO SERIES GA SERIES
------------------------ ------------------------ ---------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES
FOR FISCAL 1996 (as
percentage of average
net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .09 1.00* .10 1.00* .09 1.00*
Other Expenses............ .21 .17 .25 .25 .24 .23
---- ---- ---- ---- ---- ----
Total Series Operating
Expenses ................. .80% 1.67% .85% 1.75% .83% 1.73%
==== ==== ==== ==== ==== ====
</TABLE>
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
NAT'L SERIES CO SERIES GA SERIES
---------------------- ------------------------ -------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
- ------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 55 $ 27+ $ 56 $ 28+ $ 56 $ 28+
3 yrs.................... 72 53 73 55 73 54
5 yrs.................... 90 91 92 95 91 94
10 yrs.................... 142 198 147 206 145 204
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1%. Pursuant to the rules of the National Association of
Securities Dealers, Inc., the aggregate deferred sales loads and annual
distribution fees on Class D shares of each Series may not exceed 6.25% of
total gross sales, subject to certain exclusions. The 6.25% limitation is
imposed on the Series rather than on a per shareholder basis. Therefore, a
long-term Class D shareholder of a Series may pay more in total sales loads
(including distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: NAT'L--$17; CO--$18; GA--$18.
3
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES--(continued)
LA SERIES MD SERIES MA SERIES
------------------------- --------------------------- ---------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as ....
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996
(as percentage of
average net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .10 1.00* .10 1.00* .10 1.00*
Other Expenses............ .22 .22 .24 .22 .20 .20
---- ---- ---- ---- ---- ----
Total Series Operating
Expenses ................. .82% 1.72% .84% 1.72% .80% 1.70%
==== ==== ==== ==== ==== ====
</TABLE>
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
LA SERIES MD SERIES MA SERIES
---------------------- ------------------------ -------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 55 $ 27+ $ 56 $ 27+ $ 55 $ 27+
3 yrs.................... 72 54 73 54 72 54
5 yrs.................... 91 93 92 93 90 92
10 yrs.................... 144 203 146 203 142 201
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1%. Pursuant to the rules of the National Association of
Securities Dealers, Inc., the aggregate deferred sales loads and annual
distribution fees on Class D shares of each Series may not exceed 6.25% of
total gross sales, subject to certain exclusions. The 6.25% limitation is
imposed on the Series rather than on a per shareholder basis. Therefore, a
long-term Class D shareholder of a Series may pay more in total sales loads
(including distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: LA--$17; MD--$17; MA--$17.
4
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES--(continued)
MI SERIES MN SERIES MO SERIES
-------------------------- --------------------------- ---------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996
(as percentage of
average net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .10 1.00* .10 1.00* .10 1.00*
Other Expenses............ .18 .18 .21 .21 .26 .26
---- ---- ---- ---- ----- ----
Total Series Operating
Expenses ................. .78% 1.68% .81% 1.71% .86% 1.76%
==== ==== ==== ==== ==== ====
</TABLE>
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
MI SERIES MN SERIES MO SERIES
---------------------- ------------------------- ------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 55 $ 27+ $ 55 $ 27+ $ 56 $ 28+
3 yrs.................... 71 53 72 54 74 55
5 yrs.................... 89 91 90 93 93 95
10 yrs.................... 140 199 143 202 149 207
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1%. Pursuant to the rules of the National Association of
Securities Dealers, Inc., the aggregate deferred sales loads and annual
distribution fees on Class D shares of each Series may not exceed 6.25% of
total gross sales, subject to certain exclusions. The 6.25% limitation is
imposed on the Series rather than on a per shareholder basis. Therefore, a
long-term Class D shareholder of a Series may pay more in total sales loads
(including distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: MI--$17; MN--$17; MO--$18.
5
<PAGE>
SUMMARY OF SERIES EXPENSES--(continued)
<TABLE>
<CAPTION>
NY SERIES OH SERIES OR SERIES
------------------------- --------------------------- ---------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996
(as percentage of
average net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .09 1.00* .10 1.00* .10 1.00*
Other Expenses............ .18 .18 .21 .17 .26 .26
---- ---- ---- ---- ---- ----
Total Series Operating
Expenses ................. 77% 1.68% .77% 1.67% .86% 1.76%
=== ==== ==== ==== ==== ====
</TABLE>
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
NY SERIES OH SERIES OR SERIES
---------------------- ------------------------- ------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 55 $ 27+ $ 55 $ 27+ $ 56 $ 28+
3 yrs.................... 71 53 71 53 74 55
5 yrs.................... 88 91 88 91 93 95
10 yrs.................... 138 199 138 198 149 207
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1%. Pursuant to the rules of the National Association of
Securities Dealers, Inc., the aggregate deferred sales loads and annual
distribution fees on Class D shares of each Series may not exceed 6.25% of
total gross sales, subject to certain exclusions. The 6.25% limitation is
imposed on the Series rather than on a per shareholder basis. Therefore, a
long-term Class D shareholder of a Series may pay more in total sales loads
(including distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: NY--$17; OH--$17; OR--$18.
6
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES--(continued)
SC SERIES CA HIGH-YIELD SERIES CA QUALITY SERIES
-------------------------- --------------------------- ---------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996
(as percentage of average
net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .10 1.00* .10 1.00* .10 1.00*
Other Expenses............ .20 .20 .24 .24 .19 .19
---- ---- ---- ---- ---- ----
Total Series Operating
Expenses ................. .80% 1.70% .84% 1.74% .79% 1.69%
==== ==== ==== ==== ==== ====
</TABLE>
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
SC SERIES CA HIGH-YIELD SERIES CA QUALITY SERIES
---------------------- ------------------------- ------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 55 $ 27+ $ 56 $ 28+ $ 55 $ 27+
3 yrs.................... 72 54 73 55 72 53
5 yrs.................... 90 92 92 94 89 92
10 yrs.................... 141 201 146 205 141 200
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1% (collectively, "distribution fee"). Pursuant to the
rules of the National Association of Securities Dealers, Inc., the aggregate
deferred sales loads and annual distribution fees on Class D shares of each
Series may not exceed 6.25% of total gross sales, subject to certain
exclusions. The 6.25% limitation is imposed on the Series rather than on a
per shareholder basis. Therefore, a long-term Class D shareholder of a
Series may pay more in total sales loads (including distribution fees) than
the economic equivalent of 6.25% of such shareholder's investment in such
shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: SC--$17; CA HIGH-YIELD--$18;
CA QUALITY--$17.
7
<PAGE>
SUMMARY OF SERIES EXPENSES--(continued)
<TABLE>
<CAPTION>
FL SERIES NC SERIES NJ FUND
------------------------ ------------------------ --------------------------
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ --------
(INITIAL (DEFERRED (INITIAL (DEFERRED (INITIAL (DEFERRED
SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE) ALTERNATIVE)
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price)............. 4.75% None 4.75% None 4.75% None
Sales Load on Reinvested
Dividends .................. None None None None None None
Deferred Sales Load (as
percentage of original
price or redemption
proceeds, whichever
is lower) ................ None; 1% during None; 1% during None; 1% during
Except 1% in the first year; except 1% in the first year; except 1% in the first year;
first 18 months none first 18 months none first 18 months none
if initial sales thereafter if initial sales thereafter if initial sales thereafter
load was waived load was waived load was waived
in full due to in full due to in full due to
size of size of size of
purchase purchase purchase
Redemption Fees............. None None None None None None
Exchange Fees............... None None None None None None
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996
(as percentage of average
net assets)
Management Fees........... .50% .50% .50% .50% .50% .50%
12b-1 Fees................ .24 1.00* .24 1.00* .23 1.00*
Other Expenses............ .23 .23 .32 .32 .29 .29
---- ---- ---- ---- ---- ----
Total Series Operating
Expenses ................. 97% 1.73% 1.06% 1.82% 1.02% 1.79%
==== ==== ==== ==== ==== ====
</TABLE>
In fiscal 1996, the Manager, in its discretion, waived a portion of its fee
from the Florida Series and from the North Carolina Series. In fiscal 1997, the
Manager does not expect to waive any of its fees, and the expense information in
the table has been restated to reflect the discontinuance of the management fee
waiver.
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
<TABLE>
<CAPTION>
FL SERIES NC SERIES NJ FUND
---------------------- ------------------------- ------------------------
EXAMPLE CLASS A CLASS D CLASS A CLASS D CLASS A CLASS D
- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
An investor would pay the
following expenses on a $1,000
investment, assuming 1) 5%
annual return and (2) redemption
at the end of each time period:
1 yr..................... $ 57 $ 28+ $ 58 $ 28+ $ 57 $ 28+
3 yrs.................... 77 54 80 57 78 56
5 yrs.................... 99 94 103 99 101 97
10 yrs.................... 161 204 171 214 166 211
</TABLE>
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1% (collectively, "distribution fee"). Pursuant to the
rules of the National Association of Securities Dealers, Inc., the aggregate
deferred sales loads and annual distribution fees on Class D shares of each
Series may not exceed 6.25% of total gross sales, subject to certain
exclusions. The 6.25% limitation is imposed on the Series rather than on a
per shareholder basis. Therefore, a long-term Class D shareholder of a
Series may pay more in total sales loads (including distribution fees) than
the economic equivalent of 6.25% of such shareholder's investment in such
shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: FL--$18; NC--$18; NJ--$18.
8
<PAGE>
SUMMARY OF SERIES EXPENSES--(continued)
PA FUND
------------------------
CLASS A CLASS D
------ ------
(INITIAL (DEFERRED
SALES LOAD SALES LOAD
ALTERNATIVE) ALTERNATIVE)
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases (as percentage of
offering price).............................. 4.75% None
Sales Load on Reinvested Dividends........... None None
Deferred Sales Load (as percentage
of original price or redemption
proceeds, whichever is lower).............. None; 1% during
except 1% in the first
first 18 months year;
if initial sales None
load was waived thereafter
in full due to
size of purchase
Redemption Fees.............................. None None
Exchange Fees................................ None None
CLASS A CLASS D
------ ------
ANNUAL SERIES OPERATING
EXPENSES FOR FISCAL 1996 (as
percentage of average
net assets)
Management Fees............................ .50% .50%
12b-1 Fees................................. .23 1.00*
Other Expenses............................. .38 .38
---- ----
Total Series Operating Expenses............ 1.11% 1.88%
==== ====
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE
5% USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
PA FUND
---------------------
Example Class A Class D
- ------- ------ ------
An investor would pay the following
expenses on a $1,000 investment,
assuming (1) 5% annual return and
(2) redemption at the end of each
time period:
1 yr............................................... $ 58 29+
3 yrs.............................................. 81 59
5 yrs.............................................. 106 102
10 yrs.............................................. 176 220
* Includes an annual distribution fee of up to .75 of 1% and an annual service
fee of up to .25 of 1% (collectively, "distribution fee"). Pursuant to the
rules of the National Association of Securities Dealers, Inc., the aggregate
deferred sales loads and annual distribution fees on Class D shares of each
Series may not exceed 6.25% of total gross sales, subject to certain
exclusions. The 6.25% limitation is imposed on the Series rather than on a
per shareholder basis. Therefore, a long-term Class D shareholder of a
Series may pay more in total sales loads (including distribution fees) than
the economic equivalent of 6.25% of such shareholder's investment in such
shares.
+ Assuming (1) 5% annual return and (2) no redemption at the end of one year,
the expenses on a $1,000 investment would be: PA--$19.
9
<PAGE>
FINANCIAL HIGHLIGHTS
Each Series' financial highlights for Class A and Class D shares for the
periods presented below have been audited by Deloitte & Touche LLP, independent
auditors. This information, which is derived from the financial and accounting
records of the Funds, should be read in conjunction with the fiscal 1996
financial statements and notes contained in the fiscal 1996 Annual Report of
each Fund which may be obtained by calling or writing the Funds at the telephone
numbers or address provided on the cover page of this Prospectus.
The per share operating performance data is designed to allow investors to
trace the operating performance, on a per share basis, from a Series' beginning
net asset value to the ending net asset value so that they may understand the
effect that 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 a Series' performance assuming investors
purchased shares at the 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 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. Total returns for periods of less than one year
are not annualized.
<TABLE>
<CAPTION>
NET REALIZED (DECREASE)
NET ASSET VALUE NET & UNREALIZED FROM DIVIDENDS DISTRIBUTIONS NET INCREASE NET ASSET
PER SHARE OPERATING AT BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR FROM NET (DECREASE) IN VALUE AT
PERFORMANCE: OF PERIOD INCOME0 GAIN (LOSS) OPERATIONS DECLARED GAIN REALIZED NET ASSET VALUE END OF PERIOD
------------ --------- ------- ---------------------- -------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
National Series--Class A
Year ended 9/30/96....... $7.58 $0.40 $0.12 $0.52 $(0.40) -- $0.12 $7.70
Year ended 9/30/95....... 7.18 0.40 0.40 0.80 (0.40) -- 0.40 7.58
Year ended 9/30/94....... 8.72 0.41 (1.04) (0.63) (0.41) $(0.50) (1.54) 7.18
Year ended 9/30/93....... 8.07 0.45 0.78 1.23 (0.45) (0.13) 0.65 8.72
Year ended 9/30/92....... 7.90 0.48 0.20 0.68 (0.48) (0.03) 0.17 8.07
Year ended 9/30/91....... 7.44 0.49 0.54 1.03 (0.49) (0.08) 0.46 7.90
Year ended 9/30/90....... 7.73 0.51 (0.19) 0.32 (0.51) (0.10) (0.29) 7.44
Year ended 9/30/89....... 7.64 0.53 0.11 0.64 (0.53) (0.02) 0.09 7.73
Year ended 9/30/88....... 7.41 0.54 0.55 1.09 (0.54) (0.32) 0.23 7.64
Year ended 9/30/87....... 8.48 0.59 (0.74) (0.15) (0.59) (0.33) (1.07) 7.41
National Series--Class D
Year ended 9/30/96....... 7.57 0.33 0.13 0.46 (0.33) -- 0.13 7.70
Year ended 9/30/95....... 7.18 0.32 0.39 0.71 (0.32) -- 0.39 7.57
2/1/94*- 9/30/94 ........ 8.20 0.22 (1.02) (0.80) (0.22) -- (1.02) 7.18
Colorado Series--Class A
Year ended 9/30/96....... 7.30 0.37 (0.03) 0.34 (0.37) -- (0.03) 7.27
Year ended 9/30/95....... 7.09 0.38 0.21 0.59 (0.38) -- 0.21 7.30
Year ended 9/30/94....... 7.76 0.37 (0.59) (0.22) (0.37) (0.08) (0.67) 7.09
Year ended 9/30/93....... 7.34 0.39 0.49 0.88 (0.39) (0.07) 0.42 7.76
Year ended 9/30/92....... 7.22 0.42 0.12 0.54 (0.42) -- 0.12 7.34
Year ended 9/30/91....... 6.91 0.44 0.31 0.75 (0.44) -- 0.31 7.22
Year ended 9/30/90....... 7.06 0.46 (0.15) 0.31 (0.46) -- (0.15) 6.91
Year ended 9/30/89....... 6.87 0.46 0.19 0.65 (0.46) -- 0.19 7.06
Year ended 9/30/88....... 6.38 0.46 0.53 0.99 (0.46) (0.04) 0.49 6.87
Year ended 9/30/87....... 7.07 0.47 (0.66) (0.19) (0.47) (0.03) (0.69) 6.38
Colorado Series--Class D
Year ended 9/30/96....... 7.29 0.31 (0.02) 0.29 (0.31) -- (0.02) 7.27
Year ended 9/30/95....... 7.09 0.30 0.20 0.50 (0.30) -- 0.20 7.29
2/1/94*- 9/30/94......... 7.72 0.20 (0.63) (0.43) (0.20) -- (0.63) 7.09
Georgia Series--Class A
Year ended 9/30/96....... 7.81 0.39 0.11 0.50 (0.39) (0.05) 0.06 7.87
Year ended 9/30/95....... 7.48 0.39 0.43 0.82 (0.39) (0.10) 0.33 7.81
Year ended 9/30/94....... 8.43 0.41 (0.86) (0.45) (0.41) (0.09) (0.95) 7.48
Year ended 9/30/93....... 7.85 0.43 0.62 1.05 (0.43) (0.04) 0.58 8.43
Year ended 9/30/92....... 7.63 0.46 0.25 0.71 (0.46) (0.03) 0.22 7.85
Year ended 9/30/91....... 7.18 0.47 0.46 0.93 (0.47) (0.01) 0.45 7.63
Year ended 9/30/90....... 7.30 0.48 (0.10) 0.38 (0.48) (0.02) (0.12) 7.18
Year ended 9/30/89....... 7.09 0.48 0.22 0.70 (0.48) (0.01) 0.21 7.30
Year ended 9/30/88....... 6.49 0.49 0.60 1.09 (0.49) -- 0.60 7.09
6/15/87*- 9/30/87........ 7.14 0.13 (0.65) (0.52) (0.13) -- (0.65) 6.49
Georgia Series--Class D
Year ended 9/30/96....... 7.82 0.32 0.11 0.43 (0.32) (0.05) 0.06 7.88
Year ended 9/30/95....... 7.49 0.32 0.43 0.75 (0.32) (0.10) 0.33 7.82
2/1/94*- 9/30/94......... 8.33 0.22 (0.84) (0.62) (0.22) -- (0.84) 7.49
Louisiana Series--Class A
Year ended 9/30/96....... 8.14 0.42 0.08 0.50 (0.42) (0.06) 0.02 8.16
Year ended 9/30/95....... 7.94 0.43 0.34 0.77 (0.43) (0.14) 0.20 8.14
Year ended 9/30/94....... 8.79 0.44 (0.77) (0.33) (0.44) (0.08) (0.85) 7.94
Year ended 9/30/93....... 8.38 0.46 0.51 0.97 (0.46) (0.10) 0.41 8.79
Year ended 9/30/92....... 8.18 0.49 0.24 0.73 (0.49) (0.04) 0.20 8.38
Year ended 9/30/91....... 7.70 0.50 0.50 1.00 (0.50) (0.02) 0.48 8.18
Year ended 9/30/90....... 7.88 0.52 (0.12) 0.40 (0.52) (0.06) (0.18) 7.70
Year ended 9/30/89....... 7.79 0.53 0.15 0.68 (0.53) (0.06) 0.09 7.88
Year ended 9/30/88....... 7.36 0.55 0.49 1.04 (0.55) (0.06) 0.43 7.79
Year ended 9/30/87....... 7.93 0.55 (0.49) 0.06 (0.55) (0.08) (0.57) 7.36
Louisiana Series--Class D
Year ended 9/30/96....... 8.14 0.35 0.08 0.43 (0.35) (0.06) 0.02 8.16
Year ended 9/30/95....... 7.94 0.35 0.34 0.69 (0.35) (0.14) 0.20 8.14
2/1/94*- 9/30/94......... 8.73 0.24 (0.79) (0.55) (0.24) -- (0.79) 7.94
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
RATIO OF ADJUSTED
NET ADJUSTED RATIO OF NET
TOTAL RETURN RATIO OF INVESTMENT ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES INCOME NET ASSETS AT INVESTMENT EXPENSES TO INCOME
NET ASSET TO AVERAGE TO AVERAGE PORTFOLIO END OF PERIOD INCOME AVERAGE NET TO AVERAGE
VALUE NET ASSETS0 NET ASSETS0 TURNOVER (000'S OMITTED) PER SHARE0 ASSETS0 NET ASSETS0
----- ----------- ----------- -------- --------------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
National Series--Class A
Year ended 9/30/96....... 6.97% 0.80% 5.19% 33.99% $ 98,767
Year ended 9/30/95....... 11.48 0.86 5.46 24.91 104,184
Year ended 9/30/94....... (7.83) 0.85 5.30 24.86 111,374
Year ended 9/30/93....... 16.00 0.86 5.49 72.68 136,394
Year ended 9/30/92....... 8.84 0.77 6.02 63.99 132,130
Year ended 9/30/91....... 14.24 0.80 6.35 71.67 136,326
Year ended 9/30/90....... 4.10 0.78 6.64 55.01 133,412
Year ended 9/30/89....... 8.62 0.78 6.86 71.90 140,376
Year ended 9/30/88....... 16.43 0.83 7.35 40.58 135,667
Year ended 9/30/87....... (2.37) 0.74 7.15 64.79 133,341
National Series--Class D
Year ended 9/30/96....... 6.13 1.67 4.27 33.99 4,826
Year ended 9/30/95....... 10.17 1.95 4.40 24.91 1,215
2/1/94*- 9/30/94 ........ (9.96) 1.76+ 4.37+ 24.86++ 446
Colorado Series--Class A
Year ended 9/30/96....... 4.76 0.85 5.07 12.39 52,295
Year ended 9/30/95....... 8.56 0.93 5.31 14.70 54,858
Year ended 9/30/94....... (2.92) 0.86 5.06 10.07 58,197
Year ended 9/30/93....... 12.54 0.90 5.21 14.09 67,912
Year ended 9/30/92....... 7.74 0.81 5.81 23.22 64,900
Year ended 9/30/91....... 11.15 0.84 6.19 14.60 64,310
Year ended 9/30/90....... 4.38 0.85 6.47 31.89 63,173
Year ended 9/30/89....... 9.70 0.86 6.56 -- 62,515
Year ended 9/30/88....... 16.19 0.88 6.89 12.95 66,257
Year ended 9/30/87....... (3.18) 0.77 6.61 16.70 79,961 $0.46 0.85% 6.53%
Colorado Series--Class D
Year ended 9/30/96....... 3.95 1.75 4.17 12.39 255
Year ended 9/30/95....... 7.26 2.02 4.23 14.70 193
2/1/94*- 9/30/94......... (5.73) 1.78+ 4.05+ 10.07++ 96
Georgia Series--Class A
Year ended 9/30/96....... 6.56` 0.83 4.94 16.24 50,995
Year ended 9/30/95....... 11.66 0.91 5.26 3.36 57,678 0.39 0.96 5.21
Year ended 9/30/94....... (5.52) 0.73 5.21 19.34 61,466 0.40 0.93 5.01
Year ended 9/30/93....... 13.96 0.63 5.34 12.45 64,650 0.40 0.93 5.04
Year ended 9/30/92....... 9.64 0.47 5.95 10.24 44,585 0.43 0.87 5.55
Year ended 9/30/91....... 13.30 0.59 6.30 6.07 28,317 0.43 1.09 5.80
Year ended 9/30/90....... 5.19 0.53 6.53 5.83 19,002 0.44 1.03 6.03
Year ended 9/30/89....... 10.15 0.64 6.59 -- 14,452 0.44 1.19 6.04
Year ended 9/30/88....... 17.51 0.36 7.15 6.32 9,752 0.43 1.35 6.17
6/15/87*- 9/30/87........ (7.61) 0.17+ 6.64+ 21.71 6,382 0.07 2.87+ 3.94+
Georgia Series--Class D
Year ended 9/30/96....... 5.60 1.73 4.03 16.24 2,327
Year ended 9/30/95....... 10.58 1.90 4.28 3.36 2,079 0.31 1.95 4.23
2/1/94*- 9/30/94......... (7.57) 1.76+ 4.28+ 19.34++ 849 0.21 1.90+ 4.15+
Louisiana Series--Class A
Year ended 9/30/96....... 6.32 0.82 5.15 10.08 57,264
Year ended 9/30/95....... 10.30 0.89 5.44 4.82 61,988
Year ended 9/30/94....... (3.83) 0.87 5.31 17.16 61,441
Year ended 9/30/93....... 12.10 0.87 5.40 9.21 67,529
Year ended 9/30/92....... 9.13 0.80 5.89 25.45 57,931
Year ended 9/30/91....... 13.49 0.83 6.31 20.85 50,089
Year ended 9/30/90....... 5.20 0.81 6.62 31.54 43,475
Year ended 9/30/89....... 9.04 0.84 6.82 12.94 43,908
Year ended 9/30/88....... 14.69 0.85 7.19 36.01 42,521
Year ended 9/30/87....... 0.62 0.73 7.02 10.20 49,661
Louisiana Series--Class D
Year ended 9/30/96....... 5.37 1.72 4.25 10.08 389
Year ended 9/30/95....... 9.17 1.91 4.41 4.82 465
2/1/94*- 9/30/94......... (6.45) 1.78+ 4.33+ 17.16++ 704
</TABLE>
- ----------
+ Annualized.
++ For the year ended 9/30/94.
11
<PAGE>
<TABLE>
<CAPTION>
NET REALIZED (DECREASE)
NET ASSET VALUE NET & UNREALIZED FROM DIVIDENDS DISTRIBUTIONS NET INCREASE NET ASSET
PER SHARE OPERATING AT BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR FROM NET (DECREASE) IN VALUE AT
PERFORMANCE: OF PERIOD INCOME0 GAIN (LOSS) OPERATIONS DECLARED GAIN REALIZED NET ASSET VALUE END OF PERIOD
------------ --------- ------- ---------------------- -------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Maryland Series--Class A
Year ended 9/30/96....... $7.96 $0.40 $0.06 $0.46 $(0.40) $(0.03) $0.03 $7.99
Year ended 9/30/95....... 7.71 0.41 0.38 0.79 (0.41) (0.13) 0.25 7.96
Year ended 9/30/94....... 8.64 0.42 (0.76) (0.34) (0.42) (0.17) (0.93) 7.71
Year ended 9/30/93....... 8.15 0.44 0.59 1.03 (0.44) (0.10) 0.49 8.64
Year ended 9/30/92....... 7.94 0.46 0.24 0.70 (0.46) (0.03) 0.21 8.15
Year ended 9/30/91....... 7.45 0.47 0.49 0.96 (0.47) -- 0.49 7.94
Year ended 9/30/90....... 7.59 0.48 (0.14) 0.34 (0.48) -- (0.14) 7.45
Year ended 9/30/89....... 7.39 0.48 0.20 0.68 (0.48) -- 0.20 7.59
Year ended 9/30/88....... 6.87 0.47 0.56 1.03 (0.47) (0.04) 0.52 7.39
Year ended 9/30/87....... 7.59 0.48 (0.72) (0.24) (0.48) -- (0.72) 6.87
Maryland Series--Class D
Year ended 9/30/96....... 7.97 0.33 0.05 0.38 (0.33) (0.03) 0.02 7.99
Year ended 9/30/95....... 7.72 0.33 0.38 0.71 (0.33) (0.13) 0.25 7.97
2/1/94*- 9/30/94 ........ 8.46 0.23 (0.74) (0.51) (0.23) -- (0.74) 7.72
Massachusetts Series--Class A
Year ended 9/30/96....... 7.91 0.41 0.05 0.46 (0.41) (0.11) (0.06) 7.85
Year ended 9/30/95....... 7.66 0.42 0.28 0.70 (0.42) (0.03) 0.25 7.91
Year ended 9/30/94....... 8.54 0.44 (0.67) (0.23) (0.44) (0.21) (0.88) 7.66
Year ended 9/30/93....... 8.06 0.47 0.55 1.02 (0.47) (0.07) 0.48 8.54
Year ended 9/30/92....... 7.86 0.49 0.24 0.73 (0.49) (0.04) 0.20 8.06
Year ended 9/30/91....... 7.26 0.50 0.62 1.12 (0.50) (0.02) 0.60 7.86
Year ended 9/30/90....... 7.65 0.50 (0.31) 0.19 (0.50) (0.08) (0.39) 7.26
Year ended 9/30/89....... 7.62 0.52 0.08 0.60 (0.52) (0.05) 0.03 7.65
Year ended 9/30/88....... 7.20 0.53 0.51 1.04 (0.53) (0.09) 0.42 7.62
Year ended 9/30/87....... 8.07 0.55 (0.69) (0.14) (0.55) (0.18) (0.87) 7.20
Massachusetts Series--Class D
Year ended 9/30/96....... 7.90 0.34 0.05 0.39 (0.34) (0.11) (0.06) 7.84
Year ended 9/30/95....... 7.66 0.34 0.27 0.61 (0.34) (0.03) 0.24 7.90
2/1/94*- 9/30/94 ........ 8.33 0.24 (0.67) (0.43) (0.24) -- (0.67) 7.66
Michigan Series--Class A
Year ended 9/30/96....... 8.54 0.45 0.06 0.51 (0.45) (0.14) (0.08) 8.46
Year ended 9/30/95....... 8.28 0.46 0.30 0.76 (0.46) (0.04) 0.26 8.54
Year ended 9/30/94....... 9.08 0.46 (0.71) (0.25) (0.46) (0.09) (0.80) 8.28
Year ended 9/30/93....... 8.68 0.47 0.59 1.06 (0.47) (0.19) 0.40 9.08
Year ended 9/30/92....... 8.38 0.50 0.35 0.85 (0.50) (0.05) 0.30 8.68
Year ended 9/30/91....... 7.89 0.51 0.51 1.02 (0.51) (0.02) 0.49 8.38
Year ended 9/30/90....... 8.14 0.52 (0.16) 0.36 (0.52) (0.09) (0.25) 7.89
Year ended 9/30/89....... 7.94 0.54 0.23 0.77 (0.54) (0.03) 0.20 8.14
Year ended 9/30/88....... 7.48 0.54 0.58 1.12 (0.54) (0.12) 0.46 7.94
Year ended 9/30/87....... 8.54 0.56 (0.77) (0.21) (0.56) (0.29) (1.06) 7.48
Michigan Series--Class D
Year ended 9/30/96....... 8.54 0.37 0.05 0.42 (0.37) (0.14) (0.09) 8.45
Year ended 9/30/95....... 8.28 0.37 0.30 0.67 (0.37) (0.04) 0.26 8.54
2/1/94*- 9/30/94......... 9.01 0.25 (0.73) (0.48) (0.25) -- (0.73) 8.28
Minnesota Series--Class A
Year ended 9/30/96....... 7.82 0.42 (0.12) 0.30 (0.42) (0.02) (0.14) 7.68
Year ended 9/30/95....... 7.72 0.45 0.11 0.56 (0.45) (0.01) 0.10 7.82
Year ended 9/30/94....... 8.28 0.45 (0.44) 0.01 (0.45) (0.12) (0.56) 7.72
Year ended 9/30/93....... 7.89 0.47 0.51 0.98 (0.47) (0.12) 0.39 8.28
Year ended 9/30/92....... 7.81 0.49 0.09 0.58 (0.49) (0.01) 0.08 7.89
Year ended 9/30/91....... 7.49 0.49 0.32 0.81 (0.49) -- 0.32 7.81
Year ended 9/30/90....... 7.60 0.49 (0.06) 0.43 (0.49) (0.05) (0.11) 7.49
Year ended 9/30/89....... 7.52 0.51 0.11 0.62 (0.51) (0.03) 0.08 7.60
Year ended 9/30/88....... 7.12 0.51 0.48 0.99 (0.51) (0.08) 0.40 7.52
Year ended 9/30/87....... 7.99 0.53 (0.66) (0.13) (0.53) (0.21) (0.87) 7.12
Minnesota Series--Class D
Year ended 9/30/96....... 7.82 0.35 (0.12) 0.23 (0.35) (0.02) (0.14) 7.68
Year ended 9/30/95....... 7.73 0.38 0.10 0.48 (0.38) (0.01) 0.09 7.82
2/1/94*- 9/30/94 ........ 8.22 0.25 (0.49) (0.24) (0.25) -- (0.49) 7.73
Missouri Series--Class A
Year ended 9/30/96....... 7.70 0.39 0.08 0.47 (0.39) (0.07) 0.01 7.71
Year ended 9/30/95....... 7.41 0.40 0.36 0.76 (0.40) (0.07) 0.29 7.70
Year ended 9/30/94....... 8.31 0.40 (0.79) (0.39) (0.40) (0.11) (0.90) 7.41
Year ended 9/30/93....... 7.80 0.42 0.57 0.99 (0.42) (0.06) 0.51 8.31
Year ended 9/30/92....... 7.72 0.44 0.15 0.59 (0.44) (0.07) 0.08 7.80
Year ended 9/30/91....... 7.22 0.46 0.50 0.96 (0.46) -- 0.50 7.72
Year ended 9/30/90....... 7.28 0.45 (0.06) 0.39 (0.45) -- (0.06) 7.22
Year ended 9/30/89....... 7.10 0.47 0.18 0.65 (0.47) -- 0.18 7.28
Year ended 9/30/88....... 6.57 0.48 0.58 1.06 (0.48) (0.05) 0.53 7.10
Year ended 9/30/87....... 7.32 0.47 (0.75) (0.28) (0.47) -- (0.75) 6.57
Missouri Series--Class D
Year ended 9/30/96....... 7.70 0.32 0.09 0.41 (0.32) (0.07) 0.02 7.72
Year ended 9/30/95....... 7.41 0.32 0.36 0.68 (0.32) (0.07) 0.29 7.70
2/1/94*- 9/30/94 ........ 8.20 0.22 (0.79) (0.57) (0.22) -- (0.79) 7.41
</TABLE>
- ----------
o During the periods stated, the Manager, at its discretion, reimbursed
certain expenses and/or waived all or portions of its fees. The adjusted
net investment income per share and adjusted ratios reflect what the
results would have been had the Manager not reimbursed certain expenses
and/or not waived its fees .
* Commencement of offering of shares.
12
<PAGE>
<TABLE>
<CAPTION>
RATIO OF ADJUSTED
NET ADJUSTED RATIO OF NET
TOTAL RETURN RATIO OF INVESTMENT ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES INCOME NET ASSETS AT INVESTMENT EXPENSES TO INCOME
NET ASSET TO AVERAGE TO AVERAGE PORTFOLIO END OF PERIOD INCOME AVERAGE NET TO AVERAGE
VALUE NET ASSETS0 NET ASSETS0 TURNOVER (000'S OMITTED) PER SHARE0 ASSETS0 NET ASSETS0
----- ----------- ----------- -------- --------------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Maryland Series--Class A
Year ended 9/30/96 .......... 6.00% 0.84% 5.05% 5.56% $ 54,041
Year ended 9/30/95 .......... 10.90 0.96 5.31 3.63 56,290
Year ended 9/30/94 .......... (4.08) 0.92 5.17 17.68 57,263
Year ended 9/30/93 .......... 13.23 0.97 5.28 14.10 64,472
Year ended 9/30/92 .......... 9.15 0.86 5.76 29.57 57,208
Year ended 9/30/91 .......... 13.26 0.88 6.09 18.84 54,068
Year ended 9/30/90 .......... 4.47 0.87 6.26 16.50 47,283
Year ended 9/30/89 .......... 9.43 0.87 6.38 2.19 46,643
Year ended 9/30/88 .......... 15.73 0.91 6.63 17.42 45,939
Year ended 9/30/87 .......... (3.41) 0.87 6.45 21.48 50,580
Maryland Series--Class D
Year ended 9/30/96 .......... 4.91 1.72 4.14 5.56 2,047
Year ended 9/30/95 .......... 9.75 2.02 4.27 3.63 630
2/1/94*- 9/30/94 ............ (6.21) 1.80+ 4.26+ 17.68++ 424
Massachusetts Series--Class A
Year ended 9/30/96 .......... 5.97 0.80 5.24 26.30 109,872
Year ended 9/30/95 .......... 9.58 0.86 5.51 16.68 115,711
Year ended 9/30/94 .......... (2.94) 0.85 5.46 12.44 120,149
Year ended 9/30/93 .......... 13.18 0.88 5.65 20.66 139,504
Year ended 9/30/92 .......... 9.75 0.77 6.27 27.92 128,334
Year ended 9/30/91 .......... 15.84 0.83 6.64 14.37 118,022
Year ended 9/30/90 .......... 2.48 0.79 6.66 19.26 110,246
Year ended 9/30/89 .......... 8.18 0.79 6.81 7.51 122,515
Year ended 9/30/88 .......... 15.15 0.84 7.02 21.77 126,150
Year ended 9/30/87 .......... (2.16) 0.79 6.95 16.14 131,404
Massachusetts Series--Class D
Year ended 9/30/96 .......... 5.01 1.70 4.32 26.30 1,405
Year ended 9/30/95 .......... 8.33 1.95 4.47 16.68 890
2/1/94*- 9/30/94 ............ (5.34) 1.78+ 4.52+ 12.44++ 1,099
Michigan Series--Class A
Year ended 9/30/96 .......... 6.16 0.78 5.29 19.62 148,178
Year ended 9/30/95 .......... 9.56 0.87 5.50 20.48 151,589
Year ended 9/30/94 .......... (2.90) 0.84 5.32 10.06 151,095
Year ended 9/30/93 .......... 12.97 0.83 5.41 6.33 164,638
Year ended 9/30/92 .......... 10.55 0.76 5.93 32.12 144,524
Year ended 9/30/91 .......... 13.34 0.80 6.28 22.81 129,004
Year ended 9/30/90 .......... 4.57 0.80 6.47 26.36 112,689
Year ended 9/30/89 .......... 9.91 0.81 6.67 8.24 111,180
Year ended 9/30/88 .......... 15.98 0.88 7.06 34.00 104,904
Year ended 9/30/87 .......... (2.87) 0.79 6.89 15.40 104,053
Michigan Series--Class D
Year ended 9/30/96 .......... 5.09 1.68 4.39 19.62 1,486
Year ended 9/30/95 .......... 8.36 2.01 4.40 20.48 1,172
2/1/94*- 9/30/94 ............ (5.47) 1.75+ 4.40+ 10.06++ 671
Minnesota Series--Class A
Year ended 9/30/96 .......... 3.99 0.81 5.47 26.89 126,173
Year ended 9/30/95 .......... 7.61 0.87 5.89 5.57 132,716
Year ended 9/30/94 .......... 0.12 0.85 5.70 3.30 134,990
Year ended 9/30/93 .......... 13.06 0.90 5.89 5.73 144,600
Year ended 9/30/92 .......... 7.71 0.80 6.29 12.08 151,922
Year ended 9/30/91 .......... 11.10 0.80 6.28 2.61 182,979
Year ended 9/30/90 .......... 5.79 0.81 6.40 12.10 160,930
Year ended 9/30/89 .......... 8.34 0.83 6.61 7.55 148,425
Year ended 9/30/88 .......... 14.76 0.87 6.95 35.37 132,541
Year ended 9/30/87 .......... (1.94) 0.89 6.85 16.76 118,093
Minnesota Series--Class D
Year ended 9/30/96 3.06 1.71 4.57 26.89 2,036
Year ended 9/30/95 6.45 1.85 4.92 5.57 2,237
2/1/94*- 9/30/94 (3.08) 1.74+ 4.68+ 3.30++ 1,649
Missouri Series--Class A
Year ended 9/30/96 6.27 0.86 5.03 8.04 49,941
Year ended 9/30/95 10.67 0.88 5.31 3.88 51,169 $0.39 0.93% 5.26%
Year ended 9/30/94 (4.85) 0.74 5.18 14.33 52,621 0.39 0.88 5.04
Year ended 9/30/93 13.17 0.71 5.29 17.03 56,861 0.41 0.91 5.09
Year ended 9/30/92 7.87 0.83 5.71 18.80 49,459
Year ended 9/30/91 13.61 0.88 6.10 16.30 47,659
Year ended 9/30/90 5.47 0.84 6.20 30.46 50,875
Year ended 9/30/89 9.33 0.96 6.43 32.81 49,162
Year ended 9/30/88 16.74 0.86 6.88 12.32 58,457
Year ended 9/30/87 (4.20) 0.82 6.51 11.53 59,122 0.47 0.89 6.43
Missouri Series--Class D
Year ended 9/30/96 5.46 1.76 4.13 8.04 565
Year ended 9/30/95 9.49 1.98 4.23 3.88 515 0.32 2.03 4.18
2/1/94*- 9/30/94 (7.16) 1.70+ 4.27+ 14.33++ 350 0.22 1.80+ 4.17+
</TABLE>
- ----------
+ Annualized.
++ For the year ended 9/30/94.
13
<PAGE>
<TABLE>
<CAPTION>
NET REALIZED (DECREASE)
NET ASSET VALUE NET & UNREALIZED FROM DIVIDENDS DISTRIBUTIONS NET INCREASE NET ASSET
PER SHARE OPERATING AT BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR FROM NET (DECREASE) IN VALUE AT
PERFORMANCE: OF PERIOD INCOME0 GAIN (LOSS) OPERATIONS DECLARED GAIN REALIZED NET ASSET VALUE END OF PERIOD
------------ --------- ------- ---------------------- -------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
New York Series--Class A
Year ended 9/30/96....... $7.86 $0.42 $0.12 $0.54 $(0.42) -- $0.12 $7.98
Year ended 9/30/95....... 7.67 0.42 0.36 0.78 (0.42) $(0.17) 0.19 7.86
Year ended 9/30/94....... 8.75 0.43 (0.88) (0.45) (0.43) (0.20) (1.08) 7.67
Year ended 9/30/93....... 8.13 0.45 0.74 1.19 (0.45) (0.12) 0.62 8.75
Year ended 9/30/92....... 7.94 0.49 0.26 0.75 (0.49) (0.07) 0.19 8.13
Year ended 9/30/91....... 7.40 0.50 0.54 1.04 (0.50) -- 0.54 7.94
Year ended 9/30/90....... 7.71 0.51 (0.26) 0.25 (0.51) (0.05) (0.31) 7.40
Year ended 9/30/89....... 7.57 0.52 0.17 0.69 (0.52) (0.03) 0.14 7.71
Year ended 9/30/88....... 7.28 0.52 0.48 1.00 (0.52) (0.19) 0.29 7.57
Year ended 9/30/87....... 8.24 0.55 (0.71) (0.16) (0.55) (0.25) (0.96) 7.28
New York Series--Class D
Year ended 9/30/96....... 7.87 0.34 0.11 0.45 (0.34) -- 0.11 7.98
Year ended 9/30/95....... 7.67 0.34 0.37 0.71 (0.34) (0.17) 0.20 7.87
2/1/94*- 9/30/94 ........ 8.55 0.23 (0.88) (0.65) (0.23) -- (0.88) 7.67
Ohio Series--Class A
Year ended 9/30/96....... 8.11 0.43 0.02 0.45 (0.43) (0.04) (0.02) 8.09
Year ended 9/30/95....... 7.90 0.44 0.28 0.72 (0.44) (0.07) 0.21 8.11
Year ended 9/30/94....... 8.77 0.44 (0.70) (0.26) (0.44) (0.17) (0.87) 7.90
Year ended 9/30/93....... 8.28 0.46 0.56 1.02 (0.46) (0.07) 0.49 8.77
Year ended 9/30/92....... 8.06 0.49 0.26 0.75 (0.49) (0.04) 0.22 8.28
Year ended 9/30/91....... 7.62 0.51 0.45 0.96 (0.51) (0.01) 0.44 8.06
Year ended 9/30/90....... 7.80 0.52 (0.08) 0.44 (0.52) (0.10) (0.18) 7.62
Year ended 9/30/89....... 7.71 0.54 0.11 0.65 (0.54) (0.02) 0.09 7.80
Year ended 9/30/88....... 7.38 0.54 0.53 1.07 (0.54) (0.20) 0.33 7.71
Year ended 9/30/87....... 8.09 0.57 (0.59) (0.02) (0.57) (0.12) (0.71) 7.38
Ohio Series--Class D
Year ended 9/30/96....... 8.15 0.36 0.02 0.38 (0.36) (0.04) (0.02) 8.13
Year ended 9/30/95....... 7.92 0.36 0.30 0.66 (0.36) (0.07) 0.23 8.15
2/1/94*- 9/30/94 ........ 8.61 0.24 (0.69) (0.45) (0.24) -- (0.69) 7.92
Oregon Series--Class A
Year ended 9/30/96....... 7.66 0.40 -- 0.40 (0.40) (0.01) (0.01) 7.65
Year ended 9/30/95....... 7.43 0.40 0.25 0.65 (0.40) (0.02) 0.23 7.66
Year ended 9/30/94....... 8.08 0.40 (0.59) (0.19) (0.40) (0.06) (0.65) 7.43
Year ended 9/30/93....... 7.60 0.42 0.48 0.90 (0.42) -- 0.48 8.08
Year ended 9/30/92....... 7.42 0.42 0.18 0.60 (0.42) -- 0.18 7.60
Year ended 9/30/91....... 6.96 0.44 0.46 0.90 (0.44) -- 0.46 7.42
Year ended 9/30/90....... 7.05 0.44 (0.09) 0.35 (0.44) -- (0.09) 6.96
Year ended 9/30/89....... 6.83 0.44 0.22 0.66 (0.44) -- 0.22 7.05
Year ended 9/30/88....... 6.21 0.45 0.62 1.07 (0.45) -- 0.62 6.83
10/15/86*- 9/30/87....... 7.14 0.43 (0.93) (0.50) (0.43) -- (0.93) 6.21
Oregon Series--Class D
Year ended 9/30/96....... 7.65 0.33 -- 0.33 (0.33) (0.01) (0.01) 7.64
Year ended 9/30/95....... 7.43 0.33 0.24 0.57 (0.33) (0.02) 0.22 7.65
2/1/94*- 9/30/94 ........ 8.02 0.22 (0.59) (0.37) (0.22) -- (0.59) 7.43
South Carolina Series--Class A
Year ended 9/30/96....... 7.97 0.41 0.12 0.53 (0.41) (0.02) 0.10 8.07
Year ended 9/30/95....... 7.61 0.41 0.37 0.78 (0.41) (0.01) 0.36 7.97
Year ended 9/30/94....... 8.52 0.41 (0.79) (0.38) (0.41) (0.12) (0.91) 7.61
Year ended 9/30/93....... 8.00 0.43 0.54 0.97 (0.43) (0.02) 0.52 8.52
Year ended 9/30/92....... 7.71 0.45 0.31 0.76 (0.45) (0.02) 0.29 8.00
Year ended 9/30/91....... 7.23 0.46 0.52 0.98 (0.46) (0.04) 0.48 7.71
Year ended 9/30/90....... 7.37 0.48 (0.14) 0.34 (0.48) -- (0.14) 7.23
Year ended 9/30/89....... 7.21 0.48 0.17 0.65 (0.48) (0.01) 0.16 7.37
Year ended 9/30/88....... 6.67 0.50 0.54 1.04 (0.50) -- 0.54 7.21
6/30/87*-9/30/87......... 7.14 0.11 (0.47) (0.36) (0.11) -- (0.47) 6.67
South Carolina Series--Class D
Year ended 9/30/96....... 7.97 0.34 0.11 0.45 (0.34) (0.02) 0.09 8.06
Year ended 9/30/95....... 7.61 0.34 0.37 0.71 (0.34) (0.01) 0.36 7.97
2/1/94*- 9/30/94 ........ 8.42 0.22 (0.81) (0.59) (0.22) -- (0.81) 7.61
California High-Yield Series--Class A
Year ended 9/30/96....... 6.47 0.36 0.05 0.41 (0.36) (0.02) 0.03 6.50
Year ended 9/30/95....... 6.30 0.37 0.17 0.54 (0.37) -- 0.17 6.47
Year ended 9/30/94....... 6.73 0.37 (0.34) 0.03 (0.37) (0.09) (0.43) 6.30
Year ended 9/30/93....... 6.65 0.39 0.28 0.67 (0.39) (0.20) 0.08 6.73
Year ended 9/30/92....... 6.50 0.41 0.16 0.57 (0.41) (0.01) 0.15 6.65
Year ended 9/30/91....... 6.18 0.42 0.33 0.75 (0.42) (0.01) 0.32 6.50
Year ended 9/30/90....... 6.36 0.42 (0.07) 0.35 (0.42) (0.11) (0.18) 6.18
Year ended 9/30/89....... 6.27 0.44 0.15 0.59 (0.44) (0.06) 0.09 6.36
Year ended 9/30/88....... 5.94 0.44 0.39 0.83 (0.44) (0.06) 0.33 6.27
Year ended 9/30/87....... 6.73 0.46 (0.53) (0.07) (0.46) (0.26) (0.79) 5.94
California High-Yield Series--Class D
Year ended 9/30/96....... 6.48 0.30 0.05 0.35 (0.30) (0.02) 0.03 6.51
Year ended 9/30/95....... 6.31 0.31 0.17 0.48 (0.31) -- 0.17 6.48
2/1/94*- 9/30/94......... 6.67 0.21 (0.36) (0.15) (0.21) -- (0.36) 6.31
</TABLE>
- ----------
o During the periods stated, the Manager, at its discretion, reimbursed
certain expenses and/or waived all or portions of its fees. The adjusted
net investment income per share and adjusted ratios reflect what the
results would have been had the Manager not reimbursed certain expenses
and/or not waived its fees .
* Commencement of offering of shares.
14
<PAGE>
<TABLE>
<CAPTION>
RATIO OF ADJUSTED
NET ADJUSTED RATIO OF NET
TOTAL RETURN RATIO OF INVESTMENT ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES INCOME NET ASSETS AT INVESTMENT EXPENSES TO INCOME
NET ASSET TO AVERAGE TO AVERAGE PORTFOLIO END OF PERIOD INCOME AVERAGE NET TO AVERAGE
VALUE NET ASSETS0 NET ASSETS0 TURNOVER (000'S OMITTED) PER SHARE0 ASSETS0 NET ASSETS0
----- ----------- ----------- -------- --------------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
New York Series--Class A
Year ended 9/30/96 .......... 6.97% 0.77% 5.24% 25.88% $ 82,719
Year ended 9/30/95 ..........10.93 0.88 5.52 34.05 83,980
Year ended 9/30/94 ..........(5.37) 0.87 5.31 28.19 90,914
Year ended 9/30/93 ..........15.26 0.94 5.37 27.90 104,685
Year ended 9/30/92 .......... 9.80 0.79 6.09 42.90 92,681
Year ended 9/30/91 ..........14.56 0.80 6.57 44.57 83,684
Year ended 9/30/90 .......... 3.19 0.79 6.65 32.14 77,766
Year ended 9/30/89 .......... 9.35 0.80 6.78 47.69 75,471
Year ended 9/30/88 ..........14.74 0.86 6.96 62.42 74,238
Year ended 9/30/87 ..........(2.42) 0.77 6.90 20.42 72,782
New York Series--Class D
Year ended 9/30/96 .......... 5.86 1.68 4.33 25.88 1,152
Year ended 9/30/95 .......... 9.87 1.96 4.42 34.05 885
2/1/94*- 9/30/94 ............(7.73) 1.81+ 4.39+ 28.19++ 476
Ohio Series--Class A
Year ended 9/30/96 .......... 5.68 0.77 5.32 12.90 162,243
Year ended 9/30/95 .......... 9.59 0.84 5.56 2.96 170,191
Year ended 9/30/94 ..........(3.08) 0.84 5.34 9.37 171,469
Year ended 9/30/93 ..........12.81 0.85 5.44 30.68 190,083
Year ended 9/30/92 .......... 9.68 0.75 6.02 7.15 170,427
Year ended 9/30/91 ..........12.96 0.77 6.42 13.95 156,179
Year ended 9/30/90 .......... 5.70 0.77 6.63 16.05 136,251
Year ended 9/30/89 .......... 8.74 0.79 6.91 12.72 131,900
Year ended 9/30/88 ..........15.76 0.83 7.20 26.71 122,386
Year ended 9/30/87 ..........(0.66) 0.78 7.05 15.00 119,703
Ohio Series--Class D
Year ended 9/30/96 .......... 4.74 1.67 4.42 12.90 1,011
Year ended 9/30/95 .......... 8.67 1.93 4.48 2.96 660
2/1/94*- 9/30/94 ............(5.36) 1.78+ 4.41+ 9.37++ 324
Oregon Series--Class A
Year ended 9/30/96 .......... 5.27 0.86 5.18 28.65 57,345
Year ended 9/30/95 .......... 9.05 0.86 5.40 2.47 59,549 0.40% 0.91% 5.35%
Year ended 9/30/94 ..........(2.38) 0.78 5.20 9.43 59,884 0.39 0.89 5.09
Year ended 9/30/93 ..........12.21 0.78 5.35 8.08 62,095 0.41 0.93 5.20
Year ended 9/30/92 .......... 8.35 0.68 5.63 0.21 48,797 0.42 0.83 5.48
Year ended 9/30/91 ..........13.25 0.71 6.06 7.60 39,350 0.42 0.91 5.86
Year ended 9/30/90 .......... 4.99 0.72 6.17 4.09 32,221 0.42 0.93 5.96
Year ended 9/30/89 .......... 9.95 0.64 6.34 0.19 30,510 0.42 0.96 6.03
Year ended 9/30/88 ..........17.89 0.54 6.86 3.94 26,609 0.42 1.01 6.39
10/15/86*- 9/30/87 ..........(7.68) 0.52+ 6.44+ 20.16 24,434 0.39 1.11+ 5.85+
Oregon Series--Class D
Year ended 9/30/96 .......... 4.33 1.76 4.28 28.65 1,540
Year ended 9/30/95 .......... 7.86 1.83 4.41 2.47 1,495 0.33 1.88 4.36
2/1/94*- 9/30/94 ............(4.76) 1.72+ 4.32+ 9.43++ 843 0.22 1.82+ 4.22+
South Carolina Series--Class A
Year ended 9/30/96 .......... 6.82 0.80 5.15 20.66 108,163
Year ended 9/30/95 ..........10.69 0.88 5.38 4.13 112,421
Year ended 9/30/94 ..........(4.61) 0.83 5.12 1.81 115,133
Year ended 9/30/93 ..........12.52 0.85 5.19 17.69 120,589
Year ended 9/30/92 ..........10.08 0.81 5.71 3.37 82,882
Year ended 9/30/91 ..........13.95 0.81 6.14 9.05 63,863 0.45 0.91 6.04
Year ended 9/30/90 .......... 4.48 0.73 6.47 15.26 49,234 0.47 0.84 6.35
Year ended 9/30/89 .......... 9.41 0.68 6.48 0.03 46,487 0.46 0.88 6.28
Year ended 9/30/88 ..........16.18 0.33 7.03 12.36 26,385 0.45 1.00 6.36
6/30/87*-9/30/87 ............(5.37) 0.02+ 6.34+ -- 12,033 0.08 2.08+ 4.28+
South Carolina Series--Class D
Year ended 9/30/96 .......... 5.73 1.70 4.25 20.66 2,714
Year ended 9/30/95 .......... 9.63 1.85 4.40 4.13 1,704
2/1/94*- 9/30/94 ............(7.14) 1.74+ 4.29+ 1.81++ 1,478
California High-Yield Series--Class A
Year ended 9/30/96 .......... 6.49 0.84 5.49 34.75 50,264
Year ended 9/30/95 .......... 8.85 0.90 5.84 17.64 51,504
Year ended 9/30/94 .......... 0.41 0.85 5.74 8.36 48,007
Year ended 9/30/93 ..........10.66 0.88 5.94 7.70 51,218
Year ended 9/30/92 .......... 9.00 0.82 6.20 45.50 49,448
Year ended 9/30/91 ..........12.53 0.83 6.67 5.13 49,172
Year ended 9/30/90 .......... 5.57 0.89 6.68 17.66 49,312
Year ended 9/30/89 .......... 9.61 0.89 6.85 14.70 51,079
Year ended 9/30/88 ..........14.72 0.91 7.17 20.79 53,037
Year ended 9/30/87 ..........(1.46) 0.83 7.07 16.89 56,598
California High-Yield Series--Class D
Year ended 9/30/96 .......... 5.53 1.74 4.59 34.75 1,919
Year ended 9/30/95 .......... 7.78 1.91 4.84 17.64 1,277
2/1/94*- 9/30/94 ............(2.47) 1.74+ 4.73+ 8.36+ + 650
</TABLE>
- ----------
+ Annualized.
++ For the year ended 9/30/94.
15
<PAGE>
<TABLE>
<CAPTION>
NET REALIZED (DECREASE)
NET ASSET VALUE NET & UNREALIZED FROM DIVIDENDS DISTRIBUTIONS NET INCREASE NET ASSET
PER SHARE OPERATING AT BEGINNING INVESTMENT INVESTMENT INVESTMENT PAID OR FROM NET (DECREASE) IN VALUE AT
PERFORMANCE: OF PERIOD INCOME0 GAIN (LOSS) OPERATIONS DECLARED GAIN REALIZED NET ASSET VALUE END OF PERIOD
------------ --------- ------- ---------------------- -------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California Quality Series--Class A
Year ended 9/30/96....... $6.65 $0.35 $0.11 $0.46 $(0.35) $(0.01) $0.10 $6.75
Year ended 9/30/95....... 6.39 0.34 0.32 0.66 (0.34) (0.06) 0.26 6.65
Year ended 9/30/94....... 7.28 0.35 (0.73) (0.38) (0.35) (0.16) (0.89) 6.39
Year ended 9/30/93....... 6.85 0.37 0.54 0.91 (0.37) (0.11) 0.43 7.28
Year ended 9/30/92....... 6.65 0.40 0.22 0.62 (0.40) (0.02) 0.20 6.85
Year ended 9/30/91....... 6.22 0.40 0.46 0.86 (0.40) (0.03) 0.43 6.65
Year ended 9/30/90....... 6.47 0.40 (0.13) 0.27 (0.40) (0.12) (0.25) 6.22
Year ended 9/30/89....... 6.29 0.42 0.19 0.61 (0.42) (0.01) 0.18 6.47
Year ended 9/30/88....... 6.01 0.42 0.39 0.81 (0.42) (0.11) 0.28 6.29
Year ended 9/30/87....... 6.73 0.45 (0.59) (0.14) (0.45) (0.13) (0.72) 6.01
California Quality Series--Class D
Year ended 9/30/96....... 6.63 0.28 0.12 0.40 (0.28) (0.01) 0.11 6.74
Year ended 9/30/95....... 6.38 0.28 0.31 0.59 (0.28) (0.06) 0.25 6.63
2/1/94*- 9/30/94 ........ 7.13 0.19 (0.75) (0.56) (0.19) -- (0.75) 6.38
Florida Series--Class A
Year ended 9/30/96....... 7.71 0.38 0.04 0.42 (0.38) (0.08) (0.04) 7.67
Year ended 9/30/95....... 7.34 0.40 0.37 0.77 (0.40) -- 0.37 7.71
Year ended 9/30/94....... 8.20 0.42 (0.74) (0.32) (0.42) (0.12) (0.86) 7.34
Year ended 9/30/93....... 7.56 0.46 0.65 1.11 (0.46) (0.01) 0.64 8.20
Year ended 9/30/92....... 7.37 0.47 0.19 0.66 (0.47) -- 0.19 7.56
Year ended 9/30/91....... 6.90 0.43 0.47 0.90 (0.43) -- 0.47 7.37
Year ended 9/30/90....... 6.99 0.45 (0.09) 0.36 (0.45) -- (0.09) 6.90
Year ended 9/30/89....... 6.71 0.46 0.28 0.74 (0.46) -- 0.28 6.99
Year ended 9/30/88....... 6.02 0.47 0.69 1.16 (0.47) -- 0.69 6.71
11/17/86*- 9/30/87....... 7.14 0.40 (1.12) (0.72) (0.40) -- (1.12) 6.02
Florida Series--Class D
Year ended 9/30/96....... 7.72 0.32 0.04 0.36 (0.32) (0.08) (0.04) 7.68
Year ended 9/30/95....... 7.34 0.34 0.38 0.72 (0.34) -- 0.38 7.72
2/1/94*- 9/30/94 ...... 8.10 0.24 (0.76) (0.52) (0.24) -- (0.76) 7.34
North Carolina Series--Class A
Year ended 9/30/96....... 7.74 0.37 0.11 0.48 (0.37) (0.01) 0.10 7.84
Year ended 9/30/95....... 7.30 0.39 0.45 0.84 (0.39) (0.01) 0.44 7.74
Year ended 9/30/94....... 8.22 0.41 (0.87) (0.46) (0.41) (0.05) (0.92) 7.30
Year ended 9/30/93....... 7.61 0.43 0.63 1.06 (0.43) (0.02) 0.61 8.22
Year ended 9/30/92....... 7.39 0.44 0.22 0.66 (0.44) -- 0.22 7.61
Year ended 9/30/91....... 7.04 0.45 0.35 0.80 (0.45) -- 0.35 7.39
8/27/90*- 9/30/90........ 7.14 0.03 (0.10) (0.07) (0.03) -- (0.10) 7.04
North Carolina Series--Class D
Year ended 9/30/96....... 7.74 0.31 0.10 0.41 (0.31) (0.01) 0.09 7.83
Year ended 9/30/95....... 7.29 0.33 0.46 0.79 (0.33) (0.01) 0.45 7.74
2/1/94*- 9/30/94 ........ 8.17 0.23 (0.88) (0.65) (0.23) -- (0.88) 7.29
New Jersey--Class A
Year ended 9/30/96....... 7.59 0.39 0.01 0.40 (0.39) -- 0.01 7.60
Year ended 9/30/95....... 7.40 0.39 0.29 0.68 (0.39) (0.10) 0.19 7.59
Year ended 9/30/94....... 8.24 0.41 (0.74) (0.33) (0.41) (0.10) (0.84) 7.40
Year ended 9/30/93....... 7.74 0.42 0.61 1.03 (0.42) (0.11) 0.50 8.24
Year ended 9/30/92....... 7.49 0.44 0.27 0.71 (0.44) (0.02) 0.25 7.74
Year ended 9/30/91....... 7.01 0.44 0.51 0.95 (0.44) (0.03) 0.48 7.49
Year ended 9/30/90....... 7.17 0.45 (0.10) 0.35 (0.45) (0.06) (0.16) 7.01
Year ended 9/30/89....... 6.98 0.48 0.19 0.67 (0.48) -- 0.19 7.17
2/16/88*- 9/30/88........ 7.14 0.30 (0.16) 0.14 (0.30) -- (0.16) 6.98
New Jersey--Class D
Year ended 9/30/96....... 7.67 0.33 0.01 0.34 (0.33) -- 0.01 7.68
Year ended 9/30/95....... 7.48 0.33 0.29 0.62 (0.33) (0.10) 0.19 7.67
2/1/94*- 9/30/94......... 8.14 0.23 (0.66) (0.43) (0.23) -- (0.66) 7.48
Pennsylvania--Class A
Year ended 9/30/96....... 7.79 0.38 0.12 0.50 (0.38) (0.09) 0.03 7.82
Year ended 9/30/95....... 7.55 0.38 0.37 0.75 (0.38) (0.13) 0.24 7.79
Year ended 9/30/94....... 8.61 0.39 (0.80) (0.41) (0.39) (0.26) (1.06) 7.55
Year ended 9/30/93....... 8.02 0.42 0.71 1.13 (0.42) (0.12) 0.59 8.61
Year ended 9/30/92....... 7.74 0.46 0.30 0.76 (0.46) (0.02) 0.28 8.02
Year ended 9/30/91....... 7.34 0.47 0.49 0.96 (0.47) (0.09) 0.40 7.74
Year ended 9/30/90....... 7.50 0.47 (0.16) 0.31 (0.47) -- (0.16) 7.34
Year ended 9/30/89....... 7.31 0.49 0.19 0.68 (0.49) -- 0.19 7.50
Year ended 9/30/88....... 6.76 0.50 0.56 1.06 (0.50) (0.01) 0.55 7.31
Year ended 9/30/87....... 7.58 0.51 (0.81) (0.30) (0.51) (0.01) (0.82) 6.76
Pennsylvania--Class D
Year ended 9/30/96....... 7.78 0.32 0.12 0.44 (0.32) (0.09) 0.03 7.81
Year ended 9/30/95....... 7.54 0.31 0.37 0.68 (0.31) (0.13) 0.24 7.78
2/1/94*- 9/30/94......... 8.37 0.22 (0.83) (0.61) (0.22) -- (0.83) 7.54
</TABLE>
- ----------
o During the periods stated, the Manager, at its discretion, reimbursed
certain expenses and/or waived all or portions of its fees. The adjusted
net investment income per share and adjusted ratios reflect what the
results would have been had the Manager not reimbursed certain expenses
and/or not waived its fees .
* Commencement of offering of shares.
16
<PAGE>
<TABLE>
<CAPTION>
RATIO OF ADJUSTED
NET ADJUSTED RATIO OF NET
TOTAL RETURN RATIO OF INVESTMENT ADJUSTED NET RATIO OF INVESTMENT
BASED ON EXPENSES INCOME NET ASSETS AT INVESTMENT EXPENSES TO INCOME
NET ASSET TO AVERAGE TO AVERAGE PORTFOLIO END OF PERIOD INCOME AVERAGE NET TO AVERAGE
VALUE NET ASSETS0 NET ASSETS0 TURNOVER (000'S OMITTED) PER SHARE0 ASSETS0 NET ASSETS0
----- ----------- ----------- -------- --------------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
California Quality Series--Class A
Year ended 9/30/96 ...... 7.00% 0.79% 5.11% 12.84% $ 95,560
Year ended 9/30/95 ...... 10.85 0.89 5.34 11.24 94,947
Year ended 9/30/94 ...... (5.46) 0.81 5.20 22.16 99,020
Year ended 9/30/93 ...... 13.92 0.82 5.30 15.67 111,732
Year ended 9/30/92 ...... 9.56 0.78 5.86 34.25 93,557
Year ended 9/30/91 ...... 14.35 0.78 6.19 20.11 77,884
Year ended 9/30/90 ...... 4.22 0.83 6.31 28.61 61,854
Year ended 9/30/89 ...... 9.86 0.85 6.53 57.85 59,258
Year ended 9/30/88 ...... 14.37 0.86 6.74 46.47 58,608
Year ended 9/30/87 ...... (2.59) 0.77 6.76 15.17 58,872
California Quality Series-- Class D
Year ended 9/30/96 ...... 6.20 1.69 4.21 12.84 1,645
Year ended 9/30/95 ...... 9.61 1.88 4.36 11.24 863
2/1/94*- 9/30/94 ........ (8.01) 1.77+ 4.39+ 22.16++ 812
Florida Series--Class A
Year ended 9/30/96 ...... 5.54 0.97 4.90 18.53 45,200 $ 0.38 0.97% 4.90%
Year ended 9/30/95 ...... 10.87 0.72 5.38 11.82 49,030 0.37 1.03 5.07
Year ended 9/30/94 ...... (3.99) 0.42 5.49 6.17 49,897 0.38 1.00 4.91
Year ended 9/30/93 ...... 15.21 0.23 5.82 16.42 52,855 0.40 1.03 5.01
Year ended 9/30/92 ...... 9.24 0.17 6.32 12.62 37,957 0.41 1.02 5.47
Year ended 9/30/91 ...... 13.41 0.90 6.00 -- 28,173 0.42 1.15 5.75
Year ended 9/30/90 ...... 5.23 0.65 6.44 13.08 24,025 0.44 0.90 6.20
Year ended 9/30/89 ...... 11.28 0.69 6.61 2.41 23,062 0.44 0.94 6.36
Year ended 9/30/88 ...... 19.82 0.67 7.18 1.07 20,457 0.45 0.91 6.93
11/17/86*- 9/30/87 ......(10.74) 0.50+ 6.85+ 28.52 22,228 0.37 1.01+ 6.35+
Florida Series--Class D
Year ended 9/30/96 ...... 4.74 1.73 4.14 18.53 1,277 0.32 1.73 4.14
Year ended 9/30/95 ...... 10.07 1.66 4.53 11.82 603 0.31 1.97 4.22
2/1/94*- 9/30/94 ...... (6.64) 1.29+ 4.61+ 6.17++ 244 0.21 1.84+ 4.06+
North Carolina Series--Class A
Year ended 9/30/96 ...... 6.39 1.05 4.75 15.12 35,934 0.37 1.06 4.74
Year ended 9/30/95 ...... 11.92 0.82 5.21 4.38 37,446 0.36 1.18 4.85
Year ended 9/30/94 ...... (5.80) 0.44 5.29 15.61 38,920 0.35 1.13 4.60
Year ended 9/30/93 ...... 14.46 0.23 5.44 3.13 38,828 0.35 1.22 4.45
Year ended 9/30/92 ...... 9.23 0.14 5.83 12.51 21,836 0.34 1.40 4.57
Year ended 9/30/91 ...... 11.97 0.07 6.10 -- 9,255 0.22 3.22 2.96
8/27/90*- 9/30/90 ....... (1.40) 0.94+ 4.48+ -- 1,377 0.01 4.48+ 1.04+
North Carolina Series--Class D
Year ended 9/30/96 ...... 5.45 1.81 3.99 15.12 1,232 0.31 1.82 3.98
Year ended 9/30/95 ...... 11.19 1.64 4.42 4.38 1,257 0.31 2.00 4.06
2/1/94*- 9/30/94 ........ (8.15) 1.27+ 4.49+ 15.61++ 1,282 0.20 1.95+ 3.82+
New Jersey--Class A
Year ended 9/30/96 ...... 5.37 1.02 5.06 25.65 66.293
Year ended 9/30/95 ...... 9.77 1.01 5.29 4.66 73,561 0.39 1.06 5.24
Year ended 9/30/94 ...... (4.25) 0.90 5.24 12.13 73,942 0.40 1.07 5.07
Year ended 9/30/93 ...... 14.02 0.86 5.37 15.90 82,447 0.40 1.11 5.12
Year ended 9/30/92 ...... 9.70 0.85 5.74 27.13 74,256 0.42 1.10 5.49
Year ended 9/30/91 ...... 13.97 0.81 6.02 14.64 65,044 0.42 1.11 5.72
Year ended 9/30/90 ...... 5.04 0.81 6.32 37.26 54,287 0.43 1.12 6.01
Year ended 9/30/89 ...... 9.91 0.57 6.70 16.10 51,015 0.44 1.17 6.10
2/16/88*- 9/30/88 ....... 1.96 0.40+ 6.92+ 8.20 35,563 0.26 1.36+ 5.96+
New Jersey--Class D
Year ended 9/30/96 ...... 4.56 1.79 4.29 25.65 1,152
Year ended 9/30/95 ...... 8.79 1.89 4.45 4.66 1,190 0.33 1.94 4.40
2/1/94*- 9/30/94 ........ (5.47) 1.75+ 4.37+ 12.13++ 986 0.22 1.87+ 4.25+
Pennsylvania--Class A
Year ended 9/30/96 ...... 6.57 1.11 4.82 4.56 31,139
Year ended 9/30/95 ...... 10.55 1.21 5.05 11.78 33,251
Year ended 9/30/94 ...... (5.00) 1.16 4.91 7.71 34,943
Year ended 9/30/93 ...... 14.71 1.19 5.14 40.74 41,296
Year ended 9/30/92 ...... 10.04 1.01 5.79 32.87 39,431 0.45 1.16 5.64
Year ended 9/30/91 ...... 13.40 0.98 6.16 25.24 37,853 0.45 1.23 5.91
Year ended 9/30/90 ...... 4.13 0.06 6.24 40.64 35,572 0.45 1.31 5.99
Year ended 9/30/89 ...... 9.53 0.92 6.56 9.05 41,856 0.47 1.17 6.30
Year ended 9/30/88 ...... 16.20 0.83 6.96 4.14 30,796 0.48 1.08 6.71
Year ended 9/30/87 ...... (4.21) 0.58 6.78 9.19 30,014 0.47 1.12 6.24
Pennsylvania--Class D
Year ended 9/30/96 ...... 5.76 1.88 4.05 4.56 876
Year ended 9/30/95 ...... 9.53 2.23 4.10 11.78 426
2/1/94*- 9/30/94 ........ (7.50) 2.00+ 4.20+ 7.71++ 43
</TABLE>
- ----------
+ Annualized.
++ For the year ended 9/30/94.
17
<PAGE>
ALTERNATIVE DISTRIBUTION SYSTEM
Each Series offers two classes of shares. Class A shares are sold to
investors who have concluded that they would prefer to pay an initial sales load
and have the benefit of lower continuing charges. Class D shares are sold to
investors choosing to pay no initial sales load, a higher distribution fee and,
with respect to redemptions within one year of purchase, a CDSL. The Alternative
Distribution System allows investors to choose the method of purchasing shares
that is most beneficial in light of the amount of the purchase, the length of
time the shares are expected to be held and other relevant circumstances.
Investors should determine whether under their particular circumstances it is
more advantageous to incur an initial sales load and be subject to lower ongoing
charges, as discussed below, or to have the entire initial purchase price
invested in a Series with the investment thereafter being subject to higher
ongoing charges and, for a one-year period, a CDSL.
Investors who expect to maintain their investment for an extended period of
time might choose to purchase Class A shares because over time the accumulated
continuing distribution fee of Class D shares may exceed the initial sales load
and lower distribution fee of Class A shares. This consideration must be weighed
against the fact that the amount invested in a Series will be reduced by the
initial sales load deducted at the time of purchase. Furthermore, the higher
distribution fees on Class D shares will be offset to the extent any return is
realized on the additional funds initially invested therein that would have been
equal to the amount of the initial sales load on Class A shares.
Investors who qualify for reduced initial sales loads, as described under
"Purchase Of Shares" below, might also choose to purchase Class A shares because
the sales load deducted at the time of purchase would be less. However,
investors should consider the effect of the 1% CDSL imposed on shares on which
the initial sales load was waived in full because the amount of Class A shares
purchased reached $1,000,000 or more.
Alternatively, some investors might choose to have all of their funds
invested initially by purchasing Class D shares, although remaining subject to a
higher continuing distribution fee and, for a one-year period, a CDSL as
described below. For example, an investor who does not qualify for reduced sales
loads would have to hold Class A shares for more than 6.33 years for the Class D
distribution fee to exceed the initial sales load plus the distribution fee on
Class A shares. This example does not take into account the time value of money
which further reduces the impact of the Class D shares' 1% distribution fee,
fluctuations in net asset value or the effect of the return on the investment
over this period of time.
Investors should understand that the purpose and function of the initial
sales load (and deferred sales load, when applicable) with respect to Class A
shares is the same as those of the deferred sales load and higher distribution
fees with respect to Class D shares in that the sales loads and distribution
fees applicable to a Class provide for the financing of the distribution of the
shares of the Series.
The two classes of shares of a Series 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,
potentially, certain other class expenses and has exclusive voting rights with
respect to any matter to which a separate vote of any class is required by the
Investment Company Act of 1940, as amended (the "1940 Act"), or applicable state
law. The net income attributable to each class and dividends payable on the
shares of each class will be reduced by the amount of distribution fee of each
class. Class D shares bear higher distribution expenses which will cause the
Class D shares to pay lower dividends than the Class A shares. The two classes
also have separate exchange privileges.
The Directors or Trustees of each Fund believe that no conflict of interest
currently exists between the Class A and Class D shares of each Series. On an
ongoing basis, they, in the exercise of their fiduciary duties under the 1940
Act and applicable state law, will seek to ensure that no such conflict arises.
For this purpose, they will monitor the Funds for the existence of any material
conflict among the classes and will take such action as is reasonably necessary
to eliminate any such conflicts that may develop.
18
<PAGE>
DIFFERENCES BETWEEN CLASSES. The primary differences between Class A and
Class D shares are their sales load structures and ongoing expenses as set forth
below. Each class has advantages and disadvantages for different investors, and
investors should choose the class that best suits their circumstances and their
objectives.
ANNUAL 12B-1 FEES
(AS A % OF AVERAGE
SALES LOAD DAILY NET ASSETS) OTHER INFORMATION
---------- ------------------ -----------------
CLASS A Maximum initial Service fee of Initial sales load
sales load of 4.75% .25%. waived or reduced
of the public for certain
offering price. purchases.
CDSL of 1% on
redemptions within
18 months of
purchase on
shares on which
initial sales load
was waived in full
due to the size of
the purchase.
CLASS D None Service fee of CDSL of 1% on
.25%; Distribution redemptions within
fee of .75%. one year of
purchase.
INVESTMENT OBJECTIVES AND POLICIES
MUNICIPAL SECURITIES
As used in this Prospectus, "municipal securities" refers to short-term
notes, commercial paper and intermediate and long-term bonds issued by or on
behalf of states, territories and possessions of the United States and the
District of Columbia, and their political subdivisions (such as counties,
cities, boroughs, townships, school districts and authorities), agencies, and
instrumentalities, the interest on which is, in the opinion of counsel to the
issuers, exempt from regular federal income taxes and, in certain instances,
applicable state or local income taxes. Such interest may, however, be subject
to the federal alternative minimum tax. Such securities are traded primarily in
the over-the-counter market.
Municipal bonds are issued to obtain funds for various public purposes,
including the construction of a wide range of public facilities such as
airports, bridges, highways, housing, hospitals, mass transportation, schools,
streets, water and sewer works, and gas and electric utilities. Municipal bonds
also may be issued in connection with the refunding of outstanding obligations,
obtaining funds to lend to other public institutions and for general operating
expenses.
The two principal classifications of municipal bonds are "general obligation
bonds" and "revenue bonds." General obligation bonds are secured by the issuer's
pledge of its faith, credit and taxing power for the payment of principal and
interest. Revenue bonds are payable from the revenues derived from a particular
facility or class of facilities or, in some cases, from the proceeds of a
special excise tax or other specific revenue source, but not from the general
taxing power. In addition, certain types of "industrial development bonds"
issued by or on behalf of public authorities to obtain funds for
privately-operated facilities are eligible for purchase, provided that the
interest paid thereon qualifies as exempt from regular federal income taxes and,
in certain instances, applicable state and/or local taxes. Tax-exempt industrial
development bonds do not generally carry the pledge of the credit of the issuing
municipality. Interest earned from certain municipal securities (including
certain industrial development bonds) that are private activity bonds, as
defined in the Internal Revenue Code of 1986, as amended (the "Code"), is
treated as a preference item for purposes of the alternative minimum tax. Each
Series may invest any portion of its assets in municipal securities the interest
on which is subject to the alternative minimum tax. Under normal circumstances,
each Series will invest at least 80% of its net assets in municipal securities
the interest on which is exempt from regular federal income tax (although such
interest may be subject to the federal alternative minimum tax) and state or
local income tax.
Municipal notes generally are issued to provide for short-term capital needs
and generally have maturities of 5 years or less. They include such securities
as Tax Anticipation Notes, Revenue Anticipation Notes, Bond Anticipation Notes
and Construction Loan Notes. Municipal commercial paper are short-term
obligations generally having a maturity of less than nine months.
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It should be noted that municipal securities may be adversely affected by
local political and economic conditions and developments within a particular
state. For example, adverse conditions in an industry that is significant to the
state could have a correspondingly adverse effect on specific issuers within the
state or on anticipated revenue of the issuing state; conversely, an improving
economic outlook for a significant industry may have a positive effect on such
issuers or revenue. The value of municipal securities is dependent on a variety
of factors, including general conditions in the money markets or the municipal
bond markets, political and economic factors nationally or within a state, the
size of the particular offering, the supply of municipal bonds, the maturity of
the obligation, the credit quality and rating of the issue and the assistance
provided to the bond issuing authority by the applicable state. Under normal
market conditions, if general market interest rates are increasing, the prices
of bonds will decrease. In a market of decreasing interest rates, the opposite
will generally be true. In either case, the longer the maturity, the greater the
effect. A more detailed description of the municipal securities in which each
Series may invest and special factors relating to them is set forth in each
Series' Statement of Additional Information.
SELIGMAN MUNICIPAL FUND SERIES, INC.
The Municipal Fund is a non-diversified, open-end management investment
company, as defined in the 1940 Act, incorporated in Maryland on August 8, 1983.
The Municipal Fund consists of a National Series and twelve state Series, as
described below. The Municipal Fund State Series offer investments in the
following states:
Colorado Minnesota
Georgia Missouri
Louisiana New York
Maryland Ohio
Massachusetts Oregon
Michigan South Carolina
NATIONAL SERIES seeks to maximize income exempt from regular federal income
taxes to the extent consistent with preservation of capital and with
consideration given to opportunities for capital gain. Under normal market
conditions, the National Series attempts to invest 100%, and as a matter of
fundamental policy will invest at least 80%, of the value of its net assets in
securities of states, territories and possessions of the United States and the
District of Columbia, and their political subdivisions, agencies and
instrumentalities, the interest on which is exempt from regular federal income
taxes. Such interest, however, may be subject to the federal alternative minimum
tax. There can be no assurance that the National Series will be able to meet its
investment objective.
MUNICIPAL FUND STATE SERIES each seek to maximize income exempt from regular
federal income taxes and from the personal income taxes of its designated state
to the extent consistent with preservation of capital and with consideration
given to opportunities for capital gain. Each Municipal Fund State Series
attempts to invest 100%, and as a matter of fundamental policy invests at least
80%, of the value of its net assets in securities the interest on which is
exempt from regular federal income taxes and from the personal income taxes of
the designated state. Such interest, however, may be subject to the federal
alternative minimum tax. Each Municipal Fund State Series may also invest in
municipal securities of issuers outside its designated state if such securities
bear interest that is exempt from regular federal income taxes and personal
income taxes of the state. If, in abnormal market conditions, in the judgment of
the Manager, municipal securities satisfying the investment objective of any of
the Municipal Fund State Series are not available or for other defensive
purposes, such Municipal Fund State Series may temporarily invest up to 20% of
the value of its net assets in instruments the interest on which is exempt from
regular federal income taxes, but not State personal income taxes. Such
securities would include those set forth under "Municipal Securities" above,
that would otherwise meet the Series' objective. There can be no assurance that
a Municipal Fund State Series will be able to meet its investment objective.
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<PAGE>
Each Municipal Fund State Series and the National Series are expected to
invest principally, without percentage limitations, in municipal securities that
are rated investment grade on the date of investment. Each Series also may
invest in unrated municipal securities if, based upon credit analysis by the
Manager, it is believed that such securities are of comparable quality to
investment grade securities.
In unusual circumstances, the Municipal Fund may invest up to 20% of the
value of its net assets on a temporary basis in fixed-income securities, the
interest on which is subject to federal, state or local income tax, pending the
investment or reinvestment in municipal securities of proceeds of sales of
shares or sales of portfolio securities or in order to avoid the necessity of
liquidating portfolio investments to meet redemptions of shares by investors or
where market conditions due to rising interest rates or other adverse factors
warrant temporary investing for defensive purposes. Investments in taxable
securities will be substantially in securities issued or guaranteed by the U.S.
Government (such as bills, notes and bonds), its agencies, instrumentalities or
authorities; highly-rated corporate debt securities (rated AA-, or better, by
S&P or Aa3, or better, by Moody's); prime commercial paper (rated A-1+/A-1 by
S&P or P-1 by Moody's) and certificates of deposit of "Acceptable Banking
Institutions". Acceptable Banking Institutions are defined as the 100 largest
(based on assets) banks that are subject to regulatory supervision by the U.S.
Government or state governments and the 50 largest (based on assets) foreign
banks with branches or agencies in the United States. Investments in
certificates of deposit of foreign banks and foreign branches of U.S. banks may
involve certain risks, including different regulation, use of different
accounting procedures, political or other economic developments, exchange
controls, or possible seizure or nationalization of foreign deposits.
SELIGMAN MUNICIPAL SERIES TRUST
The Municipal Trust is a non-diversified open-end management investment
company, organized as an unincorporated business trust under the laws of
Massachusetts on July 27, 1984. The Municipal Trust consists of Seligman North
Carolina Municipal Series, Seligman Florida Municipal Series, Seligman
California Municipal Quality Series and Seligman California Municipal High-Yield
Series.
SELIGMAN NORTH CAROLINA MUNICIPAL SERIES (the "North Carolina Series") and
SELIGMAN FLORIDA MUNICIPAL SERIES (the "Florida Series") each seek high income
exempt from regular federal income taxes (and with respect to the North Carolina
Series, North Carolina personal income taxes) consistent with preservation of
capital and with consideration given to capital gain by investing in North
Carolina or Florida municipal securities, as applicable, and investment grade
commercial paper rated within the two highest rating categories, on the date of
investment. Each Series also may invest in unrated municipal securities if,
based upon credit analysis by the Manager and under the supervision of the
Trustees, it is believed that such securities are of comparable quality to
investment grade securities. There can be no assurance that a Series will be
able to meet its investment objective.
Each Series will attempt to invest 100%, and as a matter of fundamental
policy will invest at least 80%, of the value of its net assets in North
Carolina or Florida municipal securities, as applicable, the interest on which
is exempt from regular federal taxes and, if applicable, North Carolina personal
taxes. Such interest, however, may be subject to the federal alternative minimum
tax. In abnormal market conditions if, in the judgment of the Manager, North
Carolina or Florida municipal securities satisfying such Series' objective may
not be purchased, the Municipal Trust may make temporary investments in
securities issued by states other than North Carolina or Florida. Moreover,
under such conditions and for defensive purposes, a Series may make temporary
investments in high-quality securities, the interest on which is not exempt from
federal income tax or, if applicable, North Carolina personal taxes. Investments
in taxable securities will be substantially in securities issued or guaranteed
by the U.S. Government (such as bills, notes and bonds), its agencies,
instrumentalities or authorities; highly-rated corporate debt securities (rated
21
<PAGE>
AA-, or better, by S&P or Aa3, or better, by Moody's); prime commercial paper
(rated A-1+/A-1 by S&P or P-1 by Moody's) and certificates of deposit of
Acceptable Banking Institutions, as defined under "Seligman Municipal Fund
Series, Inc." Investments in certificates of deposit of foreign banks and
foreign branches of U.S. banks may involve certain risks, as described above.
Each Series is permitted to purchase project notes and standby commitments;
however, neither Series has any present intention of investing in such
securities.
SELIGMAN CALIFORNIA MUNICIPAL QUALITY SERIES (the "California Quality
Series") seeks high income exempt from regular federal income taxes and from the
personal income taxes of California consistent with preservation of capital and
with consideration given to capital gain by investing in California municipal
securities that on the date of investment are within the three highest ratings
of Moody's (Aaa, Aa, A for bonds; MIG1, MIG2, MIG3, for notes; P-1 for
commercial paper) or S&P (AAA, AA, A for bonds; SP-1, SP-2 for notes; A-1+,
A-1/A-2 for commercial paper). The Series also may invest in unrated California
municipal securities if, based upon credit analysis by the Manager, it is
believed that such securities are of comparable quality to the rated securities
in which the series may invest. The securities held by the California Quality
Series ordinarily will have maturities in excess of one year. There can be no
assurance that the California Quality Series will be able to meet its investment
objective.
SELIGMAN CALIFORNIA MUNICIPAL HIGH-YIELD SERIES (the "California High-Yield
Series") seeks the maximum income exempt from regular federal income taxes and
from the personal income taxes of California consistent with preservation of
capital and with consideration given to capital gain by investing in California
municipal securities that on the date of investment are rated within the medium
to lower rating categories of Moody's (Baa or lower for bonds; MIG3 or lower for
notes; P-2 or lower for commercial paper) or S&P (BBB or lower for bonds; A-2 or
lower for commercial paper). The Series may invest in unrated California
municipal securities if, based upon credit analysis by the Manager, it is
believed that such securities are of comparable quality to securities with a
medium or low credit rating. The securities held by the Series ordinarily will
have maturities in excess of one year. There can be no assurance that the Series
will be able to meet its investment objective.
The securities in which the California High-Yield Series invests generally
involve greater volatility of price and risk of loss of principal and income
than securities in higher rating categories. Shares of the California High-Yield
Series are appropriate only for those investors who can bear the risk inherent
in seeking the highest tax-exempt yields.
During the fiscal year ended September 30, 1996 the weighted average ratings
of the California municipal long-term securities held by the California
High-Yield Series were as follows:
PERCENTAGE OF TOTAL
S&P/MOODY'S RATINGS INVESTMENTS
----------------------- --------------------
AAA/Aaa .................................... 6%
AA/Aa ...................................... 9%
A/A ........................................ 37%
BBB/Baa .................................... 24%
BB/Ba ...................................... --
B/B ........................................ --
CCC/Caa .................................... --
Unrated .................................... 24%
California municipal securities in the fourth rating category of Moody's and
S&P, although commonly referred to as investment grade, may have some
speculative characteristics that may affect the issuer's ability to pay interest
and repay principal. California municipal securities rated below the fourth
category are subject to greater risk of loss of principal and interest than
higher-rated securities, as they are predominantly speculative with respect to
the issuer's ability to pay interest and repay principal. California municipal
securities rated below BBB by S&P or Baa by Moody's are also more susceptible to
price volatility due to general economic conditions and changes in interest
rates. Since municipal securities are purchased from and sold to dealers, prices
at which these securities are sold will be affected by the degree of interest of
dealers to bid for them. In certain markets, dealers may be unwilling to make
22
<PAGE>
bids for the securities of certain issuers that the seller considers reasonable.
Furthermore, because the net asset value of the California High-Yield Series'
shares reflects the degree of willingness of dealers to bid for California
municipal securities, the price of the California High-Yield Series' shares may
be subject to greater fluctuation.
Moody's and S&P's ratings are generally accepted measures of credit risk.
They are, however, subject to certain limitations. The rating of an issuer is
based heavily on past developments and does not necessarily reflect probable
future conditions. Ratings also are not updated continuously. For a detailed
description of the ratings, see Appendix A to the Series' Statement of
Additional Information.
The Manager attempts to minimize the risks to the California High-Yield
Series inherent in the investment in lower-rated California municipal securities
through analysis of the particular issuer and security, trends in interest rates
and local and general economic conditions, diversification and when appropriate
by investing a substantial portion of the Series' assets in California municipal
securities rated in the fourth rating category or higher.
Each of the California Quality Series and the California High-Yield Series
will attempt to invest 100%, and as a matter of fundamental policy will invest
at least 80%, of the value of its net assets in securities the interest on which
is exempt from regular federal and California personal income taxes. Such
interest, however, may be subject to the federal alternative minimum tax. In
abnormal market conditions if, in the judgment of the Manager, municipal
securities satisfying a Series' objective may not be purchased, a Series may
make temporary investments in securities the interest on which is exempt only
from regular federal income tax, such as securities issued by states other than
California. Moreover, under such conditions, a Series may make temporary
investments in high-quality securities the interest on which is not exempt from
either federal or California personal income taxes. Investments in taxable
securities will be substantially in securities issued or guaranteed by the U.S.
Government (such as bills, notes and bonds), its agencies, instrumentalities or
authorities; highly-rated corporate debt securities (rated AA-, or better, by
S&P or Aa3, or better, by Moody's); prime commercial paper (rated A-1+/A-1 by
S&P or P-1 by Moody's) and certificates of deposit of Acceptable Banking
Institutions, as defined above under "Seligman Municipal Fund Series, Inc."
Investments in certificates of deposit of foreign banks and foreign branches of
U.S. banks may involve certain risks, as described above.
Furthermore, when economic or market conditions warrant, the California
High-Yield Series may assume a temporary defensive position and invest up to 25%
of the value of its net assets in California municipal securities rated within
the three highest rating categories of Moody's or S&P. The securities which the
Series will hold under this circumstance may have maturities of less than one
year.
Each of the California Quality Series and the California High-Yield Series
may enter into stand-by commitments. Under a stand-by commitment, a Series
obligates a dealer to repurchase at the Series' option specified securities at a
specified price. The exercise of a stand-by commitment is subject to the ability
of the dealer to make payment on demand. A Series would acquire stand-by
commitments solely to facilitate portfolio liquidity and not for trading
purposes. Prior to investing in stand-by commitments the Municipal Trust, if it
deems necessary based upon the advice of counsel, will apply to the Securities
and Exchange Commission for an exemptive order relating to such commitments and
the valuation thereof. There can be no assurance that the Securities and
Exchange Commission will provide such authorization.
The price which a Series would pay for municipal securities with stand-by
commitments generally would be higher than the price which otherwise would be
paid for the municipal securities alone. A Series will only purchase obligations
with stand-by commitments from sellers the Manager deems creditworthy.
Stand-by commitments with respect to portfolio securities of a Series with
maturities of less than 60 days which are separate from the underlying portfolio
securities are not assigned a value. The cost of any such stand-by commitment is
carried as an unrealized loss from the time of purchase until it is exercised or
expires. Stand-by commitments with respect to portfolio securities of a Series
with maturities of 60 days or more which are separate from the underlying
23
<PAGE>
portfolio securities and the underlying portfolio securities are valued at fair
value as determined in accordance with procedures established by the Board of
Trustees. The Board of Trustees would, in connection with the determination of
the value of such a stand-by commitment, consider among other factors the
creditworthiness of the writer of the stand-by commitment, the duration of the
stand-by commitment, the dates on which or the periods during which the stand-by
commitment may be exercised and the applicable rules and regulations of the
Securities and Exchange Commission.
SELIGMAN NEW JERSEY MUNICIPAL FUND, INC.
The New Jersey Fund is a non-diversified, open-end management investment
company, as defined in the 1940 Act, or mutual fund, incorporated in Maryland on
March 13, 1987.
The New Jersey Fund seeks to maximize income exempt from regular federal
income tax and New Jersey personal income tax consistent with preservation of
capital and with consideration given to opportunities for capital gain by
investing in New Jersey municipal securities that are rated investment grade on
the date of investment. The New Jersey Fund also may invest in New Jersey
municipal securities that, while not rated as investment grade, are not rated
lower than B by S&P or Moody's, or if not rated, are believed, based upon credit
analysis by the Manager, to have at least comparable credit to B rated
securities. There can be no assurance that the New Jersey Fund will be able to
meet its investment objective.
The New Jersey Fund will attempt to invest 100%, and as a matter of
fundamental policy, will invest at least 80%, of the value of its net assets in
securities the interest on which is exempt from regular federal income tax and
New Jersey personal income tax. Such interest may, however, be subject to the
federal alternative minimum tax. In abnormal market conditions if, in the
judgment of the Manager, municipal securities satisfying the New Jersey Fund's
objective may not be purchased or for other temporary defensive purposes, the
New Jersey Fund may make investments in securities the interest on which is
exempt only from regular federal income tax, such as securities issued by states
other than New Jersey, or is exempt only from New Jersey personal income tax,
such as securities issued by the U.S. Government (such as Treasury bills, notes
and bonds), its agencies, instrumentalities or authorities. Moreover, under such
conditions, the New Jersey Fund may also make temporary investments in
fixed-income securities the interest on which is not exempt from either federal
income tax or New Jersey personal income tax. Such investments will be
substantially in highly-rated corporate debt securities (rated AA-, or better,
by S&P or Aa3, or better, by Moody's), prime commercial paper (rated A-1+/A-1 by
S&P or P-1 by Moody's), and certificates of deposit of Acceptable Banking
Institutions as defined under "Seligman Municipal Fund Series, Inc." Investments
in certificates of deposit of foreign banks and foreign branches of U.S. banks
may involve certain risks, as described above.
The New Jersey Fund is permitted to purchase project notes and standby
commitments; however, the New Jersey Fund has no present intention of investing
in such securities.
SELIGMAN PENNSYLVANIA MUNICIPAL FUND SERIES
The Pennsylvania Fund is a non-diversified, open-end management investment
company organized as an unincorporated trust under the laws of the Commonwealth
of Pennsylvania by a Declaration of Trust dated May 13, 1986.
The Pennsylvania Fund seeks high income exempt from regular federal income
tax and Pennsylvania income taxes consistent with preservation of capital by
investing in Pennsylvania municipal securities that are rated investment grade
on the date of investment. The Pennsylvania Fund also may invest in unrated
Pennsylvania municipal securities if, based upon credit analysis by the Manager,
it is believed that such securities are of comparable quality to investment
grade securities. The securities which the Pennsylvania Fund will hold
ordinarily will have maturities in excess of one year. There can be no assurance
that the Fund will be able to meet its investment objective.
24
<PAGE>
The Pennsylvania Fund will attempt to invest 100%, and as a matter of
fundamental policy will invest at least 80%, of the value of its net assets in
securities the interest on which is exempt from regular federal and Pennsylvania
income taxes. Such interest, however, may be subject to the federal alternative
minimum tax. In abnormal market conditions if, in the judgment of the Manager,
municipal securities satisfying the Pennsylvania Fund's objectives can not be
purchased, the Pennsylvania Fund may make temporary investments in securities
the interest on which is exempt only from regular federal income tax, such as
securities issued by states other than Pennsylvania , or is exempt only from
Pennsylvania income tax, such as securities issued by the U.S. Government (such
as bills, notes and bonds), its agencies, instrumentalities or authorities.
Moreover, under such conditions, the Pennsylvania Fund may make temporary
investments in fixed-income securities the interest on which is not exempt from
either federal or Pennsylvania income taxes. Such investments will be
substantially in highly-rated corporate debt securities (rated AA-, or better,
by S&P or Aa3, or better, by Moody's), prime commercial paper (rated A-1+/A-1 by
S&P or P-1 by Moody's) and certificates of deposit of Acceptable Banking
Institutions, as defined under "Seligman Municipal Fund Series, Inc."
Investments in certificates of deposit of foreign banks and foreign branches of
U.S. banks may involve certain risks, as described above.
Although the underlying value and quality of particular securities will be
considered in selecting investments for the Pennsylvania Fund, capital
appreciation will not be a factor. However, the Pennsylvania Fund may sell
securities held in its portfolio and, as a result, realize capital gain or loss,
in order to eliminate unsafe investments and investments not consistent with the
preservation of the capital or tax status of the Pennsylvania Fund; honor
redemption orders; meet anticipated redemption requirements and negate gains
from discount purchases; reinvest the earnings from portfolio securities in like
securities; or defray normal administration expenses.
The Pennsylvania Fund is authorized to purchase standby commitments; however,
the Pennsylvania Fund has no present intention of investing in such securities.
GENERAL
Each Fund, as a non-diversified investment company, is not limited by the
1940 Act as to the proportion of its assets that it may invest in the
obligations of a single issuer. However, each Series will comply with the
diversification requirements of the Code, as amended, and has therefore adopted
an investment restriction, which may not be changed without shareholder vote
(except for the New Jersey Fund), prohibiting each Series from purchasing with
respect to 50% of the value of the respective Series' total assets, securities
of any issuer if immediately thereafter more than 5% of such Series' total
assets would be invested in the securities of any single issuer. Furthermore, as
a matter of policy, with respect to 75% of each Series' assets, the respective
Series may not purchase any revenue bonds if thereafter more than 5% of such
Series' assets would be invested in revenue bonds of a single issuer. This
policy is not fundamental and may be changed by the Directors or Trustees, as
applicable, without shareholder approval. In the view of the Manager, the above
restriction and policy reduce the risk that might otherwise be associated with
an investment in a non-diversified investment company.
As a matter of policy, the Directors or Trustees, as applicable, will not
change a Series' investment objective without a vote of a majority of the
outstanding voting security of that Series. Under the 1940 Act, a "vote of a
majority of the outstanding voting securities" of a Series means the affirmative
vote of the lesser of (1) more than 50% of the outstanding shares of the Series
or (2) 67% or more of the shares of the Series present at a shareholder's
meeting if more than 50% of the outstanding shares of the Series are represented
at the meeting in person or by proxy.
A more detailed list of each Series' investment policies, including a list of
those restrictions or investment activities that cannot be changed without a
vote of a majority of the outstanding voting securities of a Series appears in
the Series' Statement of Additional Information.
Investment grade bonds and notes are within the four highest credit rating
categories, and investment grade commercial paper is within the two highest
25
<PAGE>
credit rating categories, of Moody's (Aaa, Aa, A, Baa for bonds; MIG 1, MIG 2,
MIG 3, MIG 4 for notes; P-1--P-2 for commercial paper) or S&P (AAA, AA, A, BBB
for bonds; SP-1--SP-2 for notes; A-1+, A-1/A-2 for commercial paper). Although
bonds and notes rated in the fourth credit rating category are commonly referred
to as investment grade they may have speculative characteristics. Such
characteristics may under certain circumstances lead to a greater degree of
market fluctuations in the value of such securities than do higher rated
municipal securities of similar maturities. A detailed discussion of such
characteristics and circumstances and their effect upon each Series appears in
the Statements of Additional Information under the heading "Investment
Objectives, Policies And Risks." A description of the credit ratings is
contained in Appendix A to the Statements of Additional Information.
ILLIQUID SECURITIES. Each Series may invest up to 15% of its net assets in
illiquid securities including restricted securities, (i.e., securities not
readily marketable without registration under the Securities Act of 1933 (the
"1933 Act")) and other securities that are not readily marketable. Each Series
may purchase restricted securities that can be offered and sold to "qualified
institutional buyers" under Rule 144A of the 1933 Act, and the Manager, acting
pursuant to procedures approved by the Funds' Boards of Directors or Trustees,
may determine, when appropriate, that specific Rule 144A securities are liquid
and not subject to the 15% limitation on illiquid securities. Should this
determination be made, the Manager, acting pursuant to such procedures, will
carefully monitor the security (focusing on such factors, amount others, as
trading activity and availability of information) to determine that the Rule
144A security continues to be liquid. It is not possible to predict with
assurance exactly how the market for Rule 144A securities will further evolve.
This investment practice could have the effect of increasing the level of
illiquidity in a Series, if and to the extent that qualified institutional
buyers become for a time uninterested in purchasing Rule 144A securities.
WHEN ISSUED SECURITIES. Each Series may purchase municipal securities on a
"when issued" basis, which means that delivery of and payment for such
securities normally take place within 45 days after the date of the buyer's
purchase commitment. The payment obligation and the interest rate on when-issued
securities are each fixed at the time the purchase commitment is made, although
no interest accrues to a purchaser prior to the settlement of the purchase of
the securities. As a result the yields obtained and the market value on such
securities may be higher or lower on the date when the instruments are actually
delivered to the buyer. A Series will generally purchase a municipal security
sold on a when issued basis with the intention of actually acquiring the
securities on the settlement date. Any gain realized from any such sale of
securities will be subject to federal and state taxes.
A separate account consisting of cash or high-grade liquid debt securities
equal to the amount of outstanding purchase commitments is established with the
Funds' Custodian in connection with any purchase of when issued securities. The
account is marked to market daily, with additional cash or liquid high-grade
debt securities added when necessary. A Series meets its respective obligation
to purchase when-issued securities from outstanding cash balances, sale of
securities held in the separate account, sale of other securities or, although
they would not normally expect to do so, from the sale of the when-issued
securities themselves (which may have a greater or lesser value than the Series'
payment obligations).
VARIABLE AND FLOATING RATE OBLIGATIONS. The interest rates payable on certain
securities in which a Series may invest are not fixed and may fluctuate based
upon changes in market rates. The interest rate on variable rate obligations is
adjusted at predesignated periods and on floating rate obligations whenever
there is a change in the market rate of interest on which the floating rate is
based.
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The interest rate is set as a specific percentage of a designated base rate,
such as the rate on a Treasury Bond or Bill or the prime rate at a major
commercial bank. Such a bond generally provides that a Series can demand payment
of the bond upon seven days' notice at an amount equal to par plus accrued
interest, which amount, in unusual circumstances, may be more or less than the
amount a Series paid for the bond.
The maturity of floating or variable rate obligations (including
participation interests therein) is deemed to be the longer of (i) the notice
period required before a Series is entitled to receive payment of the obligation
upon demand or (ii) the period remaining until the obligation's next interest
rate adjustment. If not redeemed by a Series through the demand feature, the
obligations mature on a specified date which may range up to thirty years from
the date of issuance.
PARTICIPATION INTERESTS. From time to time, a Series may purchase from banks
participation interests in all or part of specific holdings of municipal
securities. Each participation interest is backed by an irrevocable letter of
credit or guarantee of the selling bank. Participation interests will be
purchased only if, in the opinion of counsel, interest income on such interests
will be tax-exempt when distributed as dividends to shareholders of a Series.
BORROWING. Each Series may borrow money only from banks and only for
temporary or emergency purposes (but not for the purchase of portfolio
securities) in an amount not in excess of 10% of the value of its total assets
at the time the borrowing is made (not including the amount borrowed). Permitted
borrowings may be secured or unsecured. A Series will not purchase additional
portfolio securities if such Series has outstanding borrowings in excess of 5%
of the value of its total assets.
MANAGEMENT SERVICES
THE MANAGER. The Board of Directors or Trustees, as applicable, provides
broad supervision over the affairs of the Funds. Pursuant to Management
Agreements approved by the Directors or Trustees and the shareholders of each
Series, the Manager manages the investment of the assets of each Series and
administers its business and other affairs. The address of the Manager is 100
Park Avenue, New York, NY 10017.
In addition to serving the Funds, the Manager serves as manager of thirteen
other investment companies which, together with the Funds, make up the "Seligman
Group." The thirteen other companies are Seligman Capital Fund, Inc., Seligman
Cash Management Fund, Inc., Seligman Common Stock Fund, Inc., Seligman
Communications and Information Fund, Inc., Seligman Frontier Fund, Inc.,
Seligman Growth Fund, Inc., Seligman Henderson Global Fund Series, Inc.,
Seligman High Income Fund Series, Seligman Income Fund, Inc., Seligman
Portfolios, Inc., Seligman Quality Municipal Fund, Inc., Seligman Select
Municipal Fund, Inc. and Tri-Continental Corporation. The aggregate assets of
the Seligman Group were approximately $14.2 billion at December 31, 1996. The
Manager also provides investment management or advice to individual and
institutional accounts having a December 31, 1996 value of approximately $4.2
billion.
Mr. William C. Morris is Chairman of the Manager and Chairman of the Board
and Chief Executive Officer of each Fund. Mr. Morris owns a majority of the
outstanding voting securities of the Manager.
The Manager also provides senior management for Seligman Data Corp., a wholly
owned subsidiary of certain investment companies in the Seligman Group, which
performs, at cost, certain recordkeep-ing functions for each Fund, maintains the
records of shareholder investment accounts and provides related services.
The Manager is entitled to receive a management fee from each Series for its
services, calculated daily and payable monthly, equal to .50% of the average
daily net assets of each Series on an annual basis. The Manager has from time to
time voluntarily waived a portion of its management fee with respect to one or
more of the Series. Each Fund pays all its expenses other than those assumed by
the Manager; expenses are allocated among the Series of the Municipal Fund and
of the Municipal Trust in a manner determined by the Directors or Trustees to be
fair and equitable. The management fee paid by each Series expressed as a
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<PAGE>
percentage of average daily net assets of that Series is presented in the
following table for the fiscal year ended September 30,1996. Total expenses for
each Series' Class A and D shares, expressed as an annualized percentage of
average daily net assets, are also presented in the following table for the year
ended September 30, 1996.
================================================================================
ANNUALIZED EXPENSE
MANAGEMENT FEE RATE RATIOS FOR
FOR THE YEAR ENDED THE YEAR ENDED
SERIES 9/30/96 9/30/96
------ ------------------- ------------------
CLASS A CLASS D
------- -------
National........... .50% .80% 1.67%
Colorado........... .50% .85% 1.75%
Georgia............ .50% .83% 1.73%
Louisiana.......... .50% .82% 1.72%
Maryland........... .50% .84% 1.72%
Massachusetts...... .50% .80% 1.70%
Michigan........... .50% .78% 1.68%
Minnesota.......... .50% .81% 1.71%
Missouri........... .50% .86% 1.76%
New York........... .50% .77% 1.68%
Ohio............... .50% .77% 1.67%
Oregon............. .50% .86% 1.76%
South Carolina..... .50% .80% 1.70%
California
High-Yield....... .50% .84% 1.74%
California Quality. .50% .79% 1.69%
Florida............ .50%* .97% 1.73%
North Carolina..... .49%* 1.05% 1.81%
New Jersey......... .50% 1.02% 1.79%
Pennsylvania....... .50% 1.11% 1.88%
* During the year ended September 30, 1996 the Manager, at its discretion,
waived a portion of its fees from the Florida and North Carolina Series.
================================================================================
PORTFOLIO MANAGER. Thomas G. Moles, Vice President and Senior Portfolio
Manager of each of the Funds, is a Managing Director of J. & W. Seligman & Co.
Incorporated, as well as President and Senior Portfolio Manager of Seligman
Quality Municipal Fund, Inc. and Seligman Select Municipal Fund, Inc. He is
responsible for approximately $2 billion in municipal securities. Mr. Moles,
with more than 25 years of experience, has spearheaded Seligman's municipal
investment efforts since joining the Manager in 1983.
The Manager's discussion of each Series' performance as well as a line graph
illustrating comparative performance information between each Series of a Fund
and the Lehman Brothers Municipal Bond Index is included in the respective
Fund's fiscal 1996 Annual Report to shareholders. Copies of a Fund's Annual
Report may be obtained, without charge, by calling or writing the Funds at the
telephone numbers or address listed on the cover page of this Prospectus.
PORTFOLIO TRANSACTIONS. Fixed income securities are generally traded on the
over-the-counter market on a "net" basis without a stated commission, through
dealers acting for their own account and not as brokers. Prices paid to dealers
will generally include a "spread", i.e., the difference between the prices at
which a dealer is willing to purchase or to sell the security at that time. In
underwritten offerings, securities are purchased at a fixed price which includes
an amount of compensation to the underwriter.
The Management Agreements recognize that in the purchase and sale of
portfolio securities, the Manager will seek the most favorable price and
execution, and, consistent with that policy, may give consideration to the
research, statistical and other services furnished by dealers to the Manager for
its use in connection with its services to the Funds as well as other clients.
Consistent with the Rules of the National Association of Securities Dealers,
Inc. and subject to seeking the most favorable price and execution available and
such other policies as the Directors or Trustees may determine, the Manager may
consider sales of shares of the Funds (and, under applicable laws, of the other
Seligman Mutual Funds) as a factor in the selection of dealers to execute
portfolio transactions for the Funds.
PORTFOLIO TURNOVER. A change in securities held by any Series is known as
"portfolio turnover" and may involve the payment by such Series of dealer
spreads or underwriting commissions and other transactions costs on the sale of
the securities as well as on the reinvestment of the proceeds in other
securities. While it is the policy of each Series to hold securities for
investment, changes will be made from time to time when the Manager believes
such changes will strengthen the Series' portfolio. The portfolio turnover of
any Series is not expected to exceed 100%.
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<PAGE>
PURCHASE OF SHARES
Seligman Financial Services, Inc. ("SFSI"), an affiliate of the Manager, acts
as general distributor of the Series' shares. Its address is 100 Park Avenue,
New York, NY 10017.
Each Series issues two classes of shares: Class A shares are sold to
investors choosing the initial sales load alternative; and Class D shares are
sold to investors choosing no initial sales load, a higher distribution fee and
a CDSL on redemptions within one year of purchase. See "Alternative Distribution
System" above.
Shares of the Series may be purchased through any authorized investment
dealer. All orders will be executed at the net asset value per share next
computed after receipt of the purchase order plus, in the case of Class A
shares, a sales load which, except for shares purchased under one of the reduced
sales load plans, will vary with the size of the purchase as shown in the
schedule under "Class A shares--Initial Sales Load" below.
THE MINIMUM AMOUNT FOR INITIAL INVESTMENT IS $1,000 FOR EACH SERIES;
SUBSEQUENT INVESTMENTS MUST BE IN THE MINIMUM AMOUNT OF $100 (EXCEPT FOR
INVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS). THE FUNDS RESERVE THE
RIGHT TO RETURN INVESTMENTS THAT DO NOT SATISFY THESE MINIMUMS. EXCEPTIONS TO
THESE MINIMUMS ARE AVAILABLE FOR ACCOUNTS BEING ESTABLISHED CONCURRENTLY WITH
THE INVEST-A-CHECK(R) SERVICE. THE MINIMUM AMOUNT FOR INITIAL INVESTMENT IN THE
SELIGMAN TIME HORIZON MATRIX(SM) ASSET ALLOCATION PROGRAM IS $10,000. FOR
INFORMATION ABOUT THIS PROGRAM, CONTACT SELIGMAN DATA CORP.
Orders received by an authorized dealer before the close of the New York
Stock Exchange ("NYSE") (normally, 4:00 p.m. Eastern time) and accepted by SFSI
before the close of business (5:00 p.m. Eastern time) on the same day will be
executed at the Series' net asset value determined as of the close of the NYSE
on that day plus, in the case of Class A shares, any applicable sales load.
Orders accepted by dealers after the close of the NYSE, or received by SFSI
after the close of business, will be executed at the Series' net asset value
next determined plus, in the case of Class A shares, any applicable sales load.
The authorized dealer through which the shareholder purchases shares is
responsible for forwarding the order to SFSI promptly.
Payment for dealer purchases may be made by check or by wire. To wire
payments, dealer orders must first be placed through SFSI's order desk and
assigned a purchase confirmation number. Funds in payment of the purchase may
then be wired to Mellon Bank, N.A., ABA #043000261, A/C (Name of Fund and
Series) (A or D), A/C #107-1011. WIRE TRANSFERS MUST INCLUDE THE PURCHASE
CONFIRMATION NUMBER AND CLIENT ACCOUNT REGISTRATION AND ACCOUNT NUMBER. Persons
other than dealers who wish to wire payment should contact Seligman Data Corp.
for specific wire instructions. Although the Funds make no charge for this
service, the transmitting bank may impose a wire service fee.
Current shareholders may purchase additional shares of the Fund at any time
through any authorized dealer or by sending a check payable to "Seligman Group
of Funds" in our postage-paid return envelope or directly to Seligman Data
Corp., P.O. Box 3947, New York, NY 10008-3947. Checks for investment must be in
U.S. dollars drawn on a domestic bank. The check should be accompanied by an
investment slip (provided on the bottom of shareholder account statements) and
include the shareholder's name, address, account number, Fund or Series name and
class of shares (A or D). If a shareholder does not provide the required
information, Seligman Data Corp. will seek further clarification and may be
forced to return the check to the shareholder. Orders sent directly to Seligman
Data Corp. will be executed at the net asset value next determined after the
order is accepted plus, in the case of Class A shares, any applicable sales
load.
Seligman Data Corp. may charge a $10.00 processing fee for checks returned to
it as uncollectable. This charge may be deducted from the shareholder's account.
For the protection of the Funds and their shareholders, no redemption proceeds
will be remitted to a shareholder with respect to shares purchased by check
(unless certified) until the Fund receives notice that the check has cleared,
which may be up to 15 days from the credit of such shares to the shareholder's
account.
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<PAGE>
VALUATION. The net asset value of a Series' shares is determined as of the
close of trading on the NYSE (normally, 4:00 p.m. Eastern time), each day,
Monday through Friday, except on days that the NYSE is closed. Net asset value
is calculated separately for each class of a Series. Municipal securities and
short-term holdings maturing in more than 60 days are valued based on quotations
provided by an independent pricing service, approved by the Directors or
Trustees, or in the absence thereof, at fair value as determined in accordance
with procedures approved by the Directors or Trustees. Short-term holdings
maturing in 60 days or less are generally valued at amortized cost. Taxable
securities are valued at market value, or in the absence thereof, fair value as
determined in accordance with procedures approved by the Directors or Trustees.
Although the legal rights of Class A and Class D shares are substantially
identical, the different expenses borne by each class will result in different
net asset values and dividends. The net asset value of Class D shares will
generally be lower than the net asset value of Class A shares as a result of the
higher distribution fee charged to Class D shares. In addition, net asset value
per share of the two classes will be effected to the extent any other class
expenses differ among classes.
CLASS A SHARES -- INITIAL SALES LOAD. Class A shares are subject to an
initial sales load which varies with the size of the purchase as shown in the
following schedule, and an annual service fee of up to .25% of the average daily
net asset value of Class A shares. See "Administration, Shareholder Services and
Distribution Plans" below.
================================================================================
CLASS A SHARES -- SALES LOAD SCHEDULE
SALES LOAD AS A
PERCENTAGE OF REGULAR
-------------------- DEALER
NET AMOUNT DISCOUNT
INVESTED AS A % OF
OFFERING (NET ASSET OFFERING
AMOUNT OF PURCHASE PRICE VALUE) PRICE
------------------ -------- ---------- ---------
Less than $ 50,000 4.75% 4.99% 4.25%
$ 50,000- 99,999 4.00 4.17 3.50
100,000- 249,999 3.50 3.63 3.00
250,000- 499,999 2.50 2.56 2.25
500,000- 999,999 2.00 2.04 1.75
1,000,000- or more* 0 0 0
* Shares acquired at net asset value pursuant to the above schedule will be
subject to a CDSL of 1% if redeemed within 18 months of purchase. See
"Purchase Of Shares--Contingent Deferred Sales Load."
================================================================================
There is no initial sales load on purchases of Class A shares of $1,000,000
or more ("NAV sales"); however, such shares are subject to a CDSL of 1% if
redeemed within eighteen months of purchase.
SFSI shall pay broker/dealers, from its own resources, a fee on NAV sales,
calculated as follows; 1.00% NAV of sales up to but not including $2 million;
.80% of NAV sales from $2 million up to but not including $3 million; .50% of
NAV sales from $3 million up to but not including $5 million; and .25% of NAV
sales from $5 million and above. The calculation of the fee will be based on
assets held by a "single person" as defined below.
SFSI shall also pay broker/dealers, from its own resources, a fee in respect
of certain investments in Class A shares of the Seligman Mutual Funds by an
"eligible employee benefit plan" (as defined below under "Special Programs")
which are attributable to the particular broker/dealer. The shares eligible for
the fee are those on which an initial front-end sales load was not paid because
either the participating eligible employee benefit plan has at least (i)
$500,000 invested in the Seligman Group of Mutual Funds or (ii) 50 eligible
employees to whom such plan is made available. Class A shares representing only
an initial purchase of Seligman Cash Management Fund are not eligible for the
fee. Such shares will become eligible for the fee once they are exchanged for
shares of another Seligman Mutual Fund. The payment is based on cumulative sales
during a single calendar year, or portion thereof. The payment schedule, for
each calendar year is as follows: 1.00% of sales up to but not including $2
million; .80% of sales from $2 million up to but not including $3 million; .50%
of sales from $3 million up to but not including $5 million; and .25% of sales
from $5 million and above.
REDUCED SALES LOADS. Reductions in sales loads apply to purchases of Class A
shares by a "single person," including an individual, members of a family unit
comprising husband, wife and minor children purchasing securities for their own
account, or a trustee or other fiduciary purchasing for a single fiduciary
account or single trust. Purchases made by a trustee or other fiduciary for a
fiduciary account may not be aggregated with purchases made on behalf of any
other fiduciary or individual account.
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<PAGE>
Class A shares purchased without an initial sales load in accordance with the
sales load schedule or pursuant to a Volume Discount, Right of Accumulation or
Letter of Intent are subject to a CDSL of 1% on redemptions within eighteen
months of purchase.
o VOLUME DISCOUNTS are provided if the total amount being invested in Class A
shares of a Series alone, or in any combination of shares of the other Seligman
Mutual Funds that are sold with an initial sales load, reaches levels indicated
in the above sales load schedule.
o THE RIGHT OF ACCUMULATION allows an investor to combine the amount being
invested in shares of the other Seligman Mutual Funds sold with an initial sales
load with the total net asset value of shares of those Funds already owned that
were sold with an initial sales load and the total net asset value of shares of
Seligman Cash Management Fund that were acquired by an investor through an
exchange of shares of another Seligman Mutual Fund on which there was an initial
sales load to determine reduced sales loads in accordance with the sales load
schedule. An investor or a dealer purchasing shares on behalf of an investor
must indicate if the investor has existing accounts when making investments or
opening new accounts.
o A LETTER OF INTENT allows an investor to purchase Class A shares over a
13-month period at reduced initial sales loads, based upon the total amount the
investor intends to purchase plus the total net asset value of shares of the
other Seligman Mutual Funds already owned that were sold with an initial sales
load and the total net asset value of shares of Seligman Cash Management Fund
that were acquired by the investor through an exchange of shares of another
Seligman Mutual Fund on which there was an initial sales load. An investor or a
dealer purchasing shares on behalf of an investor must indicate if the investor
has existing accounts when making investments or opening new accounts. For more
information concerning terms of Letters of Intent, see "Terms and Conditions" on
page 55.
SPECIAL PROGRAMS. Each Series may sell Class A shares at net asset value to
present and retired directors, trustees, officers, employees and their spouses,
(and family members of the foregoing) of the Funds, the other investment
companies in the Seligman Group, the Manager and other companies affiliated with
the Manager. Family members are defined to include lineal descendants and lineal
ancestors, siblings (and their spouses and children) and any company or
organization controlled by any of the foregoing. Such sales also may be made to
employee benefit plans and thrift plans for such persons and to any investment
advisory, custodial, trust or other fiduciary account managed or advised by the
Manager or any affiliate.
Class A shares also may be issued without an initial sales load in connection
with the acquisition of cash and securities owned by other investment companies
and personal holding companies; to any registered unit investment trust which is
the issuer of periodic payment plan certificates, the net proceeds of which are
invested in Series shares; to separate accounts established and maintained by an
insurance company which are exempt from registration under Section 3(c)(11) of
the 1940 Act; to registered representatives and employees (and their spouses and
minor children) of any dealer that has a sales agreement with SFSI; to
shareholders of mutual funds with objectives similar to a Series who purchase
shares with redemption proceeds of such funds (not to exceed the dollar value of
such redemption proceeds); to financial institution trust departments; to
registered investment advisers exercising investment discretionary authority
with respect to the purchase of Series shares, or pursuant to sponsored
arrangements with organizations which make recommendations to or permit group
solicitation of, its employees, members or participants in connection with the
purchase of shares of the Series; to other investment companies in the Seligman
Group; and to "eligible employee benefit plans" which have at least (i) $500,000
invested in the Seligman Group of Mutual Funds or (ii) 50 eligible employees to
whom such plan is made available. "Eligible employee benefit plan" means any
plan or arrangement, whether or not tax qualified, which provides for the
purchase of a Series' shares. Sales of shares to such plans must be made in
connection with a payroll deduction system of plan funding or other system
acceptable to Seligman Data Corp.
Section 403(b) plans sponsored by public educational institutions are not
eligible for net asset value purchases based on the aggregate investment made by
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<PAGE>
the plan or number of eligible employees. Employee benefit plans eligible for
net asset value sales, as described above, will be subject to a CDSL of 1% for
terminations at the plan level only, on redemptions of shares purchased within
eighteen months prior to plan termination. Sales pursuant to a 401(k) alliance
program which has an agreement with SFSI are available at net asset value and
are not subject to a CDSL.
CLASS D SHARES. Class D shares are sold without an initial sales load but are
subject to a CDSL if the shares are redeemed within one year, an annual
distribution fee of up to .75% and an annual service fee of up to .25% of the
average daily net asset value of the Class D shares. SFSI will make a 1% payment
to dealers in respect of purchases of Class D shares.
CONTINGENT DEFERRED SALES LOAD. A CDSL will be imposed on any redemption of
Class D shares which were purchased during the preceding twelve months. The
amount of any CDSL will initially be used by SFSI to defray the expense of the
payment of 1% made by it to Service Organizations (as defined under
"Administration, Shareholder Services and Distribution Plan") at the time of
sale.
A CDSL of 1% will also be imposed on any redemption of Class A shares
purchased during the preceding eighteen months if such shares were acquired at
net asset value pursuant to the sales load schedule provided under "Class A
Shares--Initial Sales Load." Employee Benefit plans eligible for net asset sales
as described above under "Special Programs" may be subject to a CDSL of 1% for
terminations at the plan level only, on redemptions of shares purchased within
eighteen months prior to plan termination. No CDSL will be imposed on shares
acquired though the investment of dividends or distributions from any Class A or
Class D shares of mutual funds in the Seligman Group.
To minimize the application of a CDSL to a redemption, shares acquired
pursuant to the investment of dividends and distributions (which are not subject
to a CDSL) will be redeemed first; followed by shares held for a period of time
longer than the applicable CDSL period. Shares held for the longest period of
time within the applicable CDSL period will then be redeemed. Additionally, for
those shares determined to be subject to a CDSL, the CDSL will be assessed on
the current net asset value or original purchase price, whichever is less.
For example, assume an investor purchased 100 shares in January at a price of
$10.00 per share. During the first year, 5 additional shares were acquired
through investment of dividends and distributions. In January of the following
year, an additional 50 shares were purchased at a price of $12.00 per share. In
March of that year, the investor chooses to redeem $1,500.00 from the account
which now holds 155 shares with a total value of $1,898.75 ($12.25 per share).
The CDSL for this transaction would be calculated as follows:
Total shares to be redeemed
(122.449 @ $12.25) as follows: $1,500.00
=========
Dividend/Distribution shares
(5 @ $12.25) $ 61.25
Shares over 1 year old
(100 @ $12.25) 1,225.00
Shares less than 1 year old subject to
CDSL (17.449 @ $12.25) 213.75
---------
Gross proceeds of redemption $1,500.00
Less CDSL (17.449 shares @ $12.00 =
$209.39 x 1% = $2.09) (2.09)
---------
Net proceeds of redemption $1,497.91
=========
For federal income tax purposes, the amount of the CDSL will reduce the gain
or increase the loss, as the case may be, on the amount recognized on the
redemption of shares.
The CDSL will be waived or reduced in the following instances:
(a) on redemptions following the death or disability of a shareholder, as
defined in section 72(m)(7) of the Code; (b) in connection with (i)
distributions from retirement plans qualified under section 401(a) of the Code
when such redemptions are necessary to make distributions to plan participants
(such payments include, but are not limited to death, disability, retirement, or
separation of service), (ii) distributions from a custodial account under
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<PAGE>
section 403(b)(7) of the Code or an individual retirement account ("IRA") due to
death, disability, or attainment of age 591/2, and (iii) a tax-free return of an
excess contribution to an IRA; (c) in whole or in part, in connection with
shares sold to current and retired Directors or Trustees of the Funds; (d) in
whole or in part, in connection with shares sold to any state, county, or city
or any instrumentality, department, authority, or agency thereof, which is
prohibited by applicable investment laws from paying a sales load or commission
in connection with the purchase of shares of any registered investment
management company; (e) pursuant to an automatic cash withdrawal service; and
(f) in connection with the redemption of shares of a Fund if it is combined with
another mutual fund in the Seligman Group, or another similar reorganization
transaction.
If, with respect to a redemption of any Class A or Class D shares sold by a
dealer, the CDSL is waived because the redemption qualifies for a waiver as set
forth above, the dealer shall remit to SFSI promptly upon notice an amount equal
to the payment or a portion of the payment made by SFSI at the time of sale of
such shares.
SFSI may from time to time assist dealers by, among other things, providing
sales literature to, and holding informational programs for the benefit of,
dealers' registered representatives. Dealers may limit the participation of
registered representatives in such informational programs by means of sales
incentive programs which may require the sale of minimum dollar amounts of
shares of the Seligman Mutual Funds. SFSI may from time to time pay a bonus or
other incentive to dealers that sell shares of the Seligman Mutual Funds. In
some instances, these bonuses or incentives may be offered only to certain
dealers which employ a registered representative who has sold or may sell a
significant amount of shares of a Fund and/or certain other mutual funds managed
by the Manager during a specified period of time. Such bonus or other incentive
may take the form of payment for travel expenses, including lodging, incurred in
connection with trips taken by qualifying registered representatives and members
of their families to places within or outside the United States. The cost to
SFSI of such promotional activities and payments shall be consistent with the
Rules of the National Association of Securities Dealers, Inc., as then in
effect.
TELEPHONE TRANSACTIONS
A shareholder with telephone transaction privileges, AND THE SHAREHOLDER'S
BROKER/DEALER REPRESENTATIVE, will have the ability to effect the following
transactions via telephone: (i) redemption of Series shares, (ii) exchange of
Series shares for shares of the same class of another Seligman Mutual Fund,
(iii) change of a dividend and/or capital gain distribution option, and (iv)
change of address. All telephone transactions are effected through Seligman Data
Corp. at (800) 221-2450.
FOR INVESTORS WHO PURCHASE SHARES BY COMPLETING AND SUBMITTING AN ACCOUNT
APPLICATION (EXCEPT THOSE ACCOUNTS REGISTERED AS TRUSTS (UNLESS THE TRUSTEE AND
SOLE BENEFICIARY ARE THE SAME PERSON), CORPORATIONS OR GROUP RETIREMENT PLANS):
Unless an election is made otherwise on the Account Application, a shareholder
and the shareholder's broker/dealer of record, as designated on the Account
Application, will automatically receive telephone services.
FOR INVESTORS WHO PURCHASE SHARES THROUGH A BROKER/DEALER: Telephone services
for a shareholder and the shareholder's representative may be elected by
completing a supplemental election application available from the broker/dealer
of record.
FOR ACCOUNTS REGISTERED AS TRUSTS (UNLESS THE TRUSTEE AND SOLE BENEFICIARY
ARE THE SAME PERSON), CORPORATIONS OR GROUP RETIREMENT PLANS: Telephone services
are not available.
All Seligman Mutual Funds with the same account number (i.e., registered
exactly the same) as an existing account, including any new fund in which the
shareholder invests in the future, will automatically include telephone services
if the existing account has telephone services. Telephone services may also be
elected at any time on a supplemental telephone services election form.
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<PAGE>
For accounts registered jointly (such as joint tenancies, tenants in common
and community property registrations), each owner, by accepting or requesting
telephone transaction services, authorizes each of the other owners to effect
telephone transactions on his or her behalf.
During times of drastic economic or market changes, a shareholder or the
shareholder's representative may experience difficulty in contacting Seligman
Data Corp. to request a redemption or exchange of Series shares via telephone.
In these circumstances, the shareholder should consider using other redemption
or exchange procedures. Use of these other redemption or exchange procedures may
result in the request being processed at a later time than if a telephone
transaction had been used, and a Series' net asset value may fluctuate during
such periods.
Each Fund and Seligman Data Corp. will employ reasonable procedures to
confirm that instructions communicated by telephone are genuine. These will
include: recording all telephone calls requesting account activity, requiring
that the caller provide certain requested personal and/or account information at
the time of the call for the purpose of establishing the caller's identity, and
sending a written confirmation of redemptions, exchanges or address changes to
the address of record each time activity is initiated by telephone. As long as
each Fund and Seligman Data Corp. follow instructions communicated by telephone
that were reasonably believed to be genuine at the time of their receipt,
neither they nor any of their affiliates will be liable for any loss to the
shareholder caused by an unauthorized transaction. In any instance where a Fund
or Seligman Data Corp. is not reasonably satisfied that instructions received by
telephone are genuine, the requested transaction will not be executed, and
neither they nor any of their affiliates will be liable for any losses which may
occur due to a delay in implementing the transaction. If a Fund or Seligman Data
Corp. does not follow the procedures described above, such Fund or Seligman Data
Corp. may be liable for any losses due to unauthorized or fraudulent
instructions. Telephone transactions must be effected through a representative
of Seligman Data Corp., i.e., requests may not be communicated via Seligman Data
Corp.'s automated telephone answering system. Shareholders, of course, may
refuse or cancel telephone transaction services. Telephone services may be
terminated by a shareholder at any time by sending a written request to Seligman
Data Corp. Written acknowledgment of the addition of telephone services to an
existing account or termination of telephone services will be sent to the
shareholder at the address of record.
REDEMPTION OF SHARES
A shareholder may redeem shares held in book credit form ("uncertificated")
without charge, except a CDSL, if applicable, at any time by SENDING A WRITTEN
REQUEST to Seligman Data Corp., P.O. Box 3947, New York, NY 10008-3947; or if
request is being sent by overnight delivery, to 100 Park Avenue, New York, NY
10017. The redemption request must be signed by all persons in whose name the
shares are registered. A shareholder may redeem shares that are not in book
credit form, by surrendering certificates in proper form to the same address.
Certificates should be sent by registered mail. Share certificates must be
endorsed for transfer or accompanied by an endorsed stock power signed by all
shareowners exactly as their name(s) appear(s) on the account registration. The
shareholder's letter of instruction or endorsed stock power should specify the
name of the Series, the account number, class of shares (A or D) and number of
shares or dollar amount to be redeemed. The Funds cannot accept conditional
redemption requests (i.e., requests to sell shares at a specific price or on a
future date).
If the redemption proceeds are (i) $50,000 or more, (ii) to be paid to
someone other than the shareholder of record (regardless of the amount) or (iii)
to be mailed to other than the address of record (regardless of the amount), the
signature(s) of the shareholder(s) must be guaranteed by an eligible financial
institution including, but not limited to, the following: banks, trust
companies, credit unions, securities brokers and dealers, savings and loan
associations and participants in the Securities Transfer Association Medallion
Program (STAMP), the Stock Exchanges Medallion Program (SEMP) or the New York
Stock Exchange Medallion Signature Program (MSP). A Fund reserves the right to
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reject a signature guarantee where it is believed that the Fund will be placed
at risk by accepting such guarantee. A signature guarantee is also necessary in
order to change the account registration. Notarization by a notary public is not
an acceptable signature guarantee. ADDITIONAL DOCUMENTATION MAY ALSO BE REQUIRED
BY SELIGMAN DATA CORP. IN THE EVENT OF A REDEMPTION BY A CORPORATION, EXECUTOR,
ADMINISTRATOR, TRUSTEE, CUSTODIAN OR RETIREMENT PLAN. FOR FURTHER INFORMATION
WITH RESPECT TO REDEMPTION REQUIREMENTS, PLEASE CONTACT THE SHAREHOLDER SERVICES
DEPARTMENT OF SELIGMAN DATA CORP. FOR ASSISTANCE. In the case of Class A shares
(except for shares purchased without an initial sales load due to the size of
the purchase), and in the case of Class D shares redeemed after one year, a
shareholder will receive the net asset value per share next determined after
receipt of a request in good order. If Class A shares which were purchased
without an initial sales load because the purchase amount was $1,000,000 or
more, are redeemed within eighteen months of purchase, a shareholder will
receive the net asset value per share next determined after receipt of a request
in good order, less a CDSL of 1% as described under "Purchase Of Shares--Class A
Shares--Initial Sales Load" above. If Class D shares are redeemed within one
year of purchase, a shareholder will receive the net asset value per share next
determined after receipt of a request in good order, less a CDSL of 1% as
described under "Purchase of Shares -- Class D Shares" above.
A shareholder may also "sell" shares to a Fund through an investment dealer
and, in that way, be certain, providing the order is timely, of receiving the
net asset value established at the end of the day on which the dealer is given
the repurchase order (less any applicable CDSL). The Funds make no charge for
this transaction, but the dealer may charge a service fee. "Sell" or repurchase
orders received from an authorized dealer before the close of the NYSE and
received by SFSI, the repurchase agent, before the close of business on the same
day will be executed at the net asset value per share determined at the close of
the NYSE on that day, less any applicable CDSL. Repurchase orders received from
authorized dealers after the close of the NYSE or not received by SFSI prior to
the close of business, will be executed at the net asset value determined as of
the close of the NYSE on the next trading day, less any applicable CDSL. Shares
held in a "street name" account with a broker/dealer may be sold to a Fund only
through a broker/dealer.
TELEPHONE REDEMPTIONS. Telephone redemptions of uncertificated shares payable
to the address of record may be made once per day, in an amount of up to $50,000
per account. Telephone redemption requests received by Seligman Data Corp. at
(800) 221-2450 between 8:30 a.m. and 4:00 p.m. Eastern time, on any business day
will be processed as of the close of business on that day. Redemption requests
by telephone will not be accepted within 30 days following an address change.
Qualified Plans, IRAs or other retirement plans are not eligible for telephone
redemptions. Each Fund reserves the right to suspend or terminate its telephone
redemption service at any time without notice.
For more information about telephone redemptions, and the circumstances under
which shareholders may bear the risk of loss for a fraudulent transaction, see
"Telephone Transactions" above.
CHECK REDEMPTION SERVICE. The Check Redemption Service allows a shareholder
who owns or purchases shares in a Series worth $25,000 or more to request
Seligman Data Corp. to provide redemption checks to be drawn on the account
associated with the Series in which the shareholder is invested, in amounts of
$500 or more. The shareholder may elect to use this Service on the Account
Application or by later written request to Seligman Data Corp. Shares for which
certificates have been issued will not be available for redemption under this
Service. Holders of Class A shares should bear in mind that check redemptions of
Class A shares acquired at net asset value due to the size of the purchase may
be subject to a CDSL. Holder of Class D shares may use this Service with respect
to shares that have been held for at least one year. Dividends continue to be
earned through the date preceding the date the check clears for payment. Use of
this Service is subject to Boston Safe Deposit and Trust Co. rules and
regulations covering checking accounts. Separate checkbooks will be furnished
for each Series.
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There is no charge for use of checks. When honoring a check that was
processed for payment, Boston Safe Deposit and Trust Co. will cause a Series to
redeem exactly enough full and fractional shares from an account to cover the
amount of the check and any applicable CDSL. If shares are owned jointly,
redemption checks will need to be signed by all persons, unless otherwise
elected under Section 6 of the Account Application, in which case a single
signature will be acceptable.
In view of daily fluctuations in share value, the shareholder should be
certain that the amount of shares in the account is sufficient in a Series to
cover the amount of checks written on that Series. If insufficient shares are in
the account, the check will be returned marked "insufficient funds." THE FUNDS
WILL NOT REDEEM SHARES OF ONE SERIES TO COVER A CHECK WRITTEN ON ANOTHER SERIES.
SELIGMAN DATA CORP. WILL CHARGE A $10.00 PROCESSING FEE FOR ANY CHECK REDEMPTION
DRAFT RETURNED AS UNCOLLECTABLE. THIS CHARGE MAY BE DEDUCTED FROM THE
SHAREHOLDER'S ACCOUNT.
Check Redemption books cannot be reordered unless the shareholder's account
has a value of $25,000 or more and Seligman Data Corp. has a certified Tax
Identification Number on file.
Cancelled checks will be returned to a shareholder under separate cover the
month after they clear. The Check Redemption Service may be terminated at any
time by a Fund or Boston Safe Deposit and Trust Co. See "Terms and Conditions"
on page 53.
FOR THE PROTECTION OF THE FUNDS AND THEIR SHAREHOLDERS, NO PROCEEDS OF A
CHECK REDEMPTION WILL BE REMITTED TO A SHAREHOLDER WITH RESPECT TO SHARES
PURCHASED BY CHECK (UNLESS CERTIFIED) UNTIL SELIGMAN DATA CORP. HAS RECEIVED
NOTICE THAT THE CHECK HAS CLEARED, WHICH MAY BE UP TO 15 DAYS FROM THE CREDIT OF
SUCH SHARES TO THE SHAREHOLDER'S ACCOUNT.
GENERAL. With respect to shares redeemed, a check for the proceeds will be
sent to the shareholder's address of record within seven calendar days after
acceptance of the redemption order and will be made payable to all of the
registered owners on the account. With respect to shares repurchased, a check
for the proceeds will be sent to the investment dealer within seven calendar
days after acceptance of the repurchase order and will be made payable to the
investment dealer. The Funds will not permit redemptions of shares with respect
to shares purchased by check (unless certified) until Seligman Data Corp. has
received notice that the check has cleared, which may be up to 15 days from the
credit of such shares to the shareholder's account. The proceeds of a redemption
or repurchase may be more or less than the shareholder's cost.
The Funds reserve the right to redeem shares owned by a shareholder whose
investment in a Series has a value of less than minimum amount specified by the
Funds' Directors or Trustees, which is presently $500. Shareholders would be
sent a notice before such redemption is processed stating that the value of
their investment in a Series is less than the specified minimum and that they
have sixty days to make an additional investment.
REINSTATEMENT PRIVILEGE
If a shareholder redeems Class A shares and then decides to reinvest them, or
to shift the investment to one of the other Seligman Mutual Funds, the
shareholder may, within 120 calendar days of the date of redemption, use all or
any part of the proceeds of the redemption to reinstate, free of an initial
sales load, all or any part of the investment in Class A shares of the Series or
any of the other Seligman Mutual Funds. If a shareholder redeems shares and the
redemption was subject to a CDSL, the shareholder may reinstate the investment
in shares of the same class of the Series or any of the other Seligman Mutual
Funds within 120 calendar days of the date of redemption and receive a credit
for the CDSL paid. Such investment will be reinstated at the net asset value per
share established as of the close of the NYSE on the day the request is
accepted. Seligman Data Corp. must be informed that the purchase is a reinstated
investment. REINSTATED SHARES MUST BE REGISTERED EXACTLY AND BE OF THE SAME
CLASS AS THE SHARES PREVIOUSLY RE-DEEMED; AND THE FUND'S MINIMUM INITIAL
INVESTMENT AMOUNT MUST BE MET AT THE TIME OF REINSTATEMENT.
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Generally, exercise of the Reinstatement Privilege does not alter the federal
income tax status of any capital gain realized on a sale of a Series' shares,
but to the extent that any shares are sold at a loss and the proceeds are
reinvested in shares of the same Series, some or all of the loss will not be
allowed as a deduction, depending upon the percentage of the proceeds
reinvested.
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION PLANS
Under each Fund's Administration, Shareholder Services and Distribution Plan
(the "Plan"), each Series may pay to SFSI an administration, shareholder
services and distribution fee in respect of each Series' Class A and Class D
shares. Payments under the Plan may include, but are not limited to: (i)
compensation to securities dealers and other organizations ("Service
Organizations") for providing distribution assistance with respect to assets
invested in a Series, (ii) compensation to Service Organizations for providing
administration, accounting and other shareholder services with respect to
Series' shareholders, and (iii) otherwise promoting the sale of shares of each
Series, including paying for the preparation of advertising and sales literature
and the printing and distribution of such promotional materials and prospectuses
to prospective investors and defraying SFSl's costs incurred in connection with
its marketing efforts with respect to shares of a Series. The Manager, in its
sole discretion, may also make similar payments to SFSI from its own resources,
which may include the management fee that the Manager receives from each Series.
Under its Plan, each Series reimburses SFSI for its expenses with respect to
Class A shares at an annual rate of up to .25% of the average daily net asset
value of a Series' Class A shares. It is expected that the proceeds from the fee
in respect of Class A shares will be used primarily to compensate Service
Organizations which enter into agreements with SFSI. Such Service Organizations
will receive from SFSI a continuing fee of up to .25% on an annual basis,
payable quarterly, of the average daily net assets of a Series' Class A shares
attributable to the particular Service Organization for providing personal
service and/or the maintenance of shareholder accounts. The fee payable from
time to time is, within such limit, determined by the Directors or Trustees of
the Funds.
The Plan, as it relates to Class A shares of the Municipal Fund, was first
approved by the Directors on July 21, 1992 and by the shareholders of each
Series on November 23, 1992. The Plan, as it relates to the Class A shares of
the California High-Yield Series and the California Quality Series, was first
approved by the Trustees on July 21, 1992 and by the shareholders on November
23, 1992. The Plan, as it relates to the Class A shares of the Florida Series,
was first approved by the Trustees on June 21, 1990 and by the shareholders on
December 7, 1990. The Plan, as it relates to Class A shares of the North
Carolina Series, was first approved by the Trustees on June 21, 1990 and by the
shareholders on April 11, 1991. The Plan, as it relates to the Class A shares of
the New Jersey Fund, was first approved by the Directors on January 12, 1988 and
by the shareholders on December 16, 1988. The Plan, as it relates to the Class A
shares of the Pennsylvania Fund, was first approved by the Trustees on June 10,
1986 and by the shareholders on April 23, 1987. The total amounts paid for the
year ended September 30, 1996 in respect of each Series' Class A shares' average
daily net assets pursuant to the Plan were as follows:
% OF
AVERAGE
SERIES NET ASSETS
------ ----------
National.................................... .09%
Colorado.................................... .10
Georgia..................................... .09
Louisiana................................... .10
Maryland.................................... .10
Massachusetts............................... .10
Michigan.................................... .10
Minnesota................................... .10
Missouri.................................... .10
New York.................................... .09
Ohio........................................ .10
Oregon...................................... .10
South Carolina.............................. .10
California High-Yield....................... .10
California Quality.......................... .10
Florida..................................... .24
North Carolina.............................. .24
New Jersey.................................. .23
Pennsylvania................................ .23
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Under its Plan, each Series reimburses SFSI for its expenses with respect to
Class D shares at an annual rate of up to 1% of the average daily net asset
value of the Class D shares. Proceeds from a Series' Class D distribution fee
are used primarily to compensate Service Organizations for administration,
shareholder services and distribution assistance (including a continuing fee of
up to .25% on an annual basis of the average daily net asset value of a Series'
Class D shares attributable to particular Service Organizations for providing
personal services and/or the maintenance of shareholder accounts) and will
initially be used by SFSI to defray the expense of the 1% payment to be made by
it to Service Organizations at the time of the sale of Class D shares. The
amounts expended by SFSI in any one year upon the initial purchase of Class D
shares may exceed the amounts received by it from Plan payments retained.
Expenses of administration, shareholder services and distribution of a Series'
Class D shares in one fiscal year may be paid from a Series' Class D Plan fees
received in any other fiscal year. Each Plan, as it relates to Class D shares,
was approved by the Directors or Trustees on November 18, 1993 and became
effective February 1, 1994. The total amount paid for the year ended September
30, 1996, in respect of each Series' Class D shares pursuant to the Plan was
1.00% per annum of each Series' Class D shares' average daily net assets. Each
Plan is reviewed by the Directors or Trustees annually.
Seligman Services, Inc. ("SSI"), an affiliate of the Manager, is a limited
purpose broker/dealer. SSI acts as broker/dealer of record for shareholder
accounts that do not have a designated broker/dealer of record and receives
compensation from a Series pursuant to its Plan for providing personal service
and account maintenance to such accounts and other distribution services.
EXCHANGE PRIVILEGE
A shareholder may, without charge, exchange at net asset value any part or
all of an investment in a Series for shares of another Series or for shares of
the other mutual funds in the Seligman Group. Exchanges may be made by mail or
by telephone if the shareholder has telephone services.
Class A and Class D shares may be exchanged only for Class A and Class D
shares, respectively, of another Seligman Mutual Fund on the basis of relative
net asset value.
If shares that are subject to a CDSL are exchanged for shares of another
Seligman Mutual Fund, then for purposes of assessing the CDSL payable upon
disposition of the exchanged shares, the applicable holding period shall be
reduced by the holding period of the original shares.
Aside from the Series described in this Prospectus, the Seligman Mutual Funds
available under the Exchange Privilege are:
o SELIGMAN CAPITAL FUND, INC. seeks aggressive capital appreciation. Current
income is not an objective.
o SELIGMAN CASH MANAGEMENT FUND, INC. invests in high quality money market
instruments. Shares are sold at net asset value.
o SELIGMAN COMMON STOCK FUND, INC. seeks favorable current income and
long-term growth of both income and capital value without exposing capital to
undue risk.
o SELIGMAN COMMUNICATIONS AND INFORMATION FUND, INC. invests in shares of
companies in the communications, information and related industries to produce
capital gain. Income is not an objective.
o SELIGMAN FRONTIER FUND, INC. seeks to produce growth in capital value,
income may be considered but will only be incidental to the fund's investment
objective.
o SELIGMAN GROWTH FUND, INC. seeks longer-term growth in capital value and an
increase in future income.
o SELIGMAN HENDERSON GLOBAL FUND SERIES, INC. consists of the Seligman
Henderson Emerging Markets Growth Fund, the Seligman Henderson Global Growth
Opportunities Fund, the Seligman Henderson Global Smaller Companies Fund, the
Seligman Henderson Global Technology Fund and the Seligman Henderson
International Fund all of which seek long-term capital appreciation primarily
through investing in companies either globally or internationally.
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o SELIGMAN HIGH INCOME FUND SERIES seeks high current income by investing in
debt securities. The Fund consists of the Seligman U.S. Government Securities
Series and the Seligman High-Yield Bond Series.
o SELIGMAN INCOME FUND, INC. seeks high current income and the possibility of
improvement of future income and capital value.
All permitted exchanges will be based on the net asset values of the
respective funds determined at the close of the NYSE on that day. Telephone
requests for exchanges received between 8:30 a.m. and 4:00 p.m. Eastern time on
any business day, by Seligman Data Corp. at (800) 221-2450 will be processed as
of the close of business on that day. The registration of an account into which
an exchange is made must be identical to the registration of the account from
which shares are exchanged. When establishing a new account by an exchange of
shares, the shares being exchanged must have a value of at least the minimum
initial investment required by the fund into which the exchange is being made.
THE METHOD OF RECEIVING DISTRIBUTIONS, UNLESS OTHERWISE INDICATED, WILL BE
CARRIED OVER TO THE NEW FUND ACCOUNT, AS WILL TELEPHONE SERVICES. ACCOUNT
SERVICES, SUCH AS INVEST-A-CHECK(R) SERVICE, DIRECTED DIVIDENDS AND AUTOMATIC
CASH WITHDRAWAL SERVICE, WILL NOT BE CARRIED OVER TO THE NEW FUND ACCOUNT UNLESS
SPECIFICALLY REQUESTED AND PERMITTED BY THE NEW FUND. Exchange orders may be
placed to effect an exchange of a specific number of shares, an exchange of
shares equal to a specific dollar amount or an exchange of all shares held.
Shares for which certificates have been issued may not be exchanged via
telephone and may be exchanged only upon receipt of an exchange request together
with certificates representing shares to be exchanged in proper form.
The terms of the exchange offer described herein may be modified at any time;
and not all of the mutual funds in the Seligman Group are available to residents
of all states. Before making any exchange, contact your authorized investment
dealer or Seligman Data Corp. to obtain prospectuses of any of the Seligman
Mutual Funds.
A broker/dealer representative will be able to effect exchanges on behalf of
a shareholder only if the shareholder has telephone services or if the
broker/dealer has entered into a Telephone Exchange Agreement with SFSI wherein
the broker/dealer must agree to indemnify SFSI and the Seligman Group of Mutual
Funds from any loss or liability incurred as a result of acceptance of telephone
exchange orders. Written confirmation of all exchanges will be forwarded to the
shareholder to whom the exchanged shares are registered and a duplicate
confirmation will be sent to the broker/dealer of record listed on the account.
SFSI reserves the right to reject any telephone exchange request. Any
rejected telephone exchange order may be processed by mail. For more information
about telephone exchange privileges, which, unless objected to, are assigned to
certain shareholders automatically, and the circumstances under which
shareholders may bear the risk of loss for a fraudulent transaction, see
"Telephone Transactions" above.
Exchanges of shares are sales and may result in a gain or loss for federal
and state income tax purposes.
FURTHER INFORMATION ABOUT
TRANSACTIONS IN THE FUNDS
Because excessive trading (including short-term, "market timing" trading) can
hurt a Series' performance, a Fund, on behalf of a Series, may refuse any
exchange (1) from any shareholder account from which there have been two
exchanges in the preceding three month period, or (2) where the exchanged shares
equal in value the lesser of $1,000,000 or 1% of the Series' net assets. A Fund
may also refuse any exchange or purchase order from any shareholder account if
the shareholder or the shareholder's broker/dealer has been advised that
previous patterns of purchases and redemptions or exchanges have been considered
excessive. Accounts under common ownership or control, including those with the
same taxpayer ID number and those administered so as to redeem or purchase
shares based upon certain predetermined market indicators, will be considered
one account for this purpose. Additionally, each Fund reserves the right to
refuse any order for the purchase of shares.
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<PAGE>
DIVIDENDS AND DISTRIBUTIONS
Each Series intends to declare dividends of net investment income daily.
Dividends are paid on the 17th day of each month. If the 17th day of the month
falls on a weekend or holiday on which the NYSE is closed, the dividend will be
distributed on the previous business day. Payments vary in amount depending on
income received from portfolio securities, expenses of operation and the number
of days in the period.
Shares will begin earning dividends on the day on which a Series receives
payment and shares are issued. Shares continue to earn dividends through the
date preceding the date they are redeemed or delivered subsequent to repurchase.
Each Series distributes substantially all of any taxable net long-term and
short-term gain realized on investments to shareholders at least annually in
accordance with requirements under the Internal Revenue Code of 1986, as
amended, and other applicable statutory and regulatory requirements.
Shareholders may elect: (1) to receive both dividends and gain distributions
in shares; (2) to receive dividends in cash and gain distributions in shares;
(3) to receive both dividends and gain distributions in cash. In the case of
prototype retirement plans, dividends and gain distributions are reinvested in
additional shares. Unless another election is made, dividends and gain
distributions will be credited to shareholder accounts in additional shares.
Shares acquired through a dividend or gain distribution and credited to a
shareholder's account are not subject to an initial sales load or a CDSL.
Dividends and gain distributions paid in shares are invested on the payable date
using the net asset value of the ex-dividend date. Shareholders may elect to
change their dividend and gain distribution options by writing Seligman Data
Corp. at the address listed below. If the shareholder has telephone services,
changes may also be telephoned to Seligman Data Corp. between 8:30 a.m. and 6:00
p.m. Eastern time, by either the shareholder or the broker/dealer of record on
the account. For information about telephone services, see "Telephone
Transactions." These elections must be received by Seligman Data Corp. before
the record date for the dividend or distribution in order to be effective for
such dividend or distribution.
The per share dividends from net investment income on a Series' Class D
shares will be lower than the per share dividends on a Series' Class A shares as
a result of the higher distribution fee applicable with respect to a Series'
Class D shares. Per share dividends of the two classes may also differ as a
result of differing class expenses, if any. Distributions of net capital gains,
if any, will be paid in the same amount for Class A and Class D shares.
Shareholders exchanging shares for shares of another Seligman Mutual Fund
will continue to receive dividends and gains as elected prior to such exchange
unless otherwise specified. In the event that a share-holder redeems, sells,
transfers or exchanges all shares in an account between the record date and the
payable date, the value of any dividends or gain distributions declared will be
paid in cash regardless of the existing election.
TAXES
FEDERAL INCOME TAXES
Each Series intends to continue to qualify as a regulated investment company
under the Code. Thus qualified, each Series will be relieved of regular federal
income tax on income distributed to shareholders provided that it distributes
each year to its shareholders at least 90% of its net investment income and net
short-term capital gains, if any.
If, at the close of each quarter of its taxable year, at least 50% of each
Series' total assets is invested in obligations exempt from regular federal
income tax the Series will be eligible to pay dividends that are excludable by
shareholders from gross income for regular federal income tax purposes ("exempt
interest dividends"). The total amount of exempt interest dividends paid by a
Series to shareholders with respect to any taxable year cannot exceed the amount
of federally tax-exempt interest received by a Series during the year less any
expenses allocable to such interest.
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<PAGE>
Distributions of net capital gain, i.e., the excess of net long-term capital
gains over net short-term capital losses ("capital gain distributions") are
taxable to shareholders as long-term capital gain, whether received in shares or
cash, regardless of how long a shareholder has held shares in the Series, except
that the portion of net capital gains representing accrued market discount on
tax-exempt obligations acquired after April 30, 1993 will be taxable as ordinary
income. Individual shareholders will be subject to federal income tax on net
capital gains at a maximum rate of 28%. Net capital gain of a corporate
shareholder is taxed at the same rate as ordinary income. Distributions from a
Series' other investment income (other than exempt interest dividends) or from
net realized short-term gain will be taxable to shareholders as ordinary income,
whether received in cash or in additional shares. Distributions will not,
generally, be eligible for the dividends-received deduction for corporations.
Shareholders receiving distributions in the form of additional shares issued by
a Series will be treated for federal income tax purposes as having received a
distribution in an amount equal to the fair market value on the date of
distribution of the shares received.
Interest on indebtedness incurred or continued to purchase or carry shares of
any Series will not be deductible for federal income tax purposes to the extent
that the Series' distributions are exempt from federal income tax.
Any gain or loss realized upon a sale or redemption of shares of a Series by
a shareholder who is not a dealer in securities generally will be treated as a
long-term capital gain or loss if the shares have been held for more than twelve
months and otherwise as a short-term capital gain or loss. However, if shares on
which a long-term capital gain distribution has been received are subsequently
sold or redeemed and such shares have been held for six months or less, any loss
realized will be treated as long-term capital loss to the extent that it offsets
the long-term capital gain distribution. Moreover, any loss realized by a
shareholder upon the sale of shares of a Series held six months or less will be
disallowed to the extent of any exempt-interest dividends received by the
shareholders with respect to such shares. In addition, no loss will be allowed
on the sale or other disposition of shares of a Series if, within a period
beginning 30 days before the date of such sale or disposition and ending 30 days
after such date, the holder acquires (such as through dividend reinvestment)
securities that are substantially identical to the shares of the Series.
In determining gain or loss on shares of a Series that are sold or exchanged
within 90 days after acquisition, a shareholder generally will not be permitted
to include in the tax basis attributable to such shares the sales load incurred
in acquiring such shares to the extent of any subsequent reduction of the sales
load by reason of the Exchange or Reinstatement Privilege offered by a Fund. Any
sales load not taken into account in determining the tax basis of shares sold or
exchanged within 90 days after acquisition will be added to the shareholder's
tax basis in the shares acquired pursuant to the Exchange or Reinstatement
Privilege.
Shareholders are urged to consult their tax advisors concerning the effect of
federal income taxes in their individual circumstances. In particular, persons
who may be "substantial users" (or "related persons" of substantial users) of
facilities financed by industrial development bonds or private activity bonds
should consult their tax advisors before purchasing shares of any Series.
UNLESS A SHAREHOLDER INCLUDES A TAXPAYER IDENTIFICATION NUMBER (SOCIAL
SECURITY NUMBER FOR INDIVIDUALS) ON THE ACCOUNT APPLICATION AND CERTIFIES THAT
SUCH SHAREHOLDER IS NOT SUBJECT TO BACKUP WITHHOLDING, EACH FUND IS REQUIRED TO
WITHHOLD AND REMIT TO THE U.S. TREASURY A PORTION OF NON-EXEMPT DISTRIBUTIONS
AND OTHER REPORTABLE PAYMENTS TO THE SHAREHOLDER. THE RATE OF BACKUP WITHHOLDING
IS 31%. SHAREHOLDERS SHOULD BE AWARE THAT, UNDER REGULATIONS PROMULGATED BY THE
INTERNAL REVENUE SERVICE, A FUND MAY BE FINED UP TO $50 ANNUALLY FOR EACH
ACCOUNT FOR WHICH A CERTIFIED TAXPAYER IDENTIFICATION NUMBER IS NOT PROVIDED. IN
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THE EVENT THAT SUCH A FINE IS IMPOSED, A FUND MAY CHARGE A SERVICE FEE OF UP TO
$50 THAT MAY BE DEDUCTED FROM THE SHAREHOLDER'S ACCOUNT AND OFFSET AGAINST ANY
UNDISTRIBUTED DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. EACH FUND ALSO RESERVES
THE RIGHT TO CLOSE ANY ACCOUNT WHICH DOES NOT HAVE A CERTIFIED TAXPAYER
IDENTIFICATION NUMBER WITH RESPECT TO ANY UNCERTIFIED ACCOUNT IN ANY YEAR, A
CORRESPONDING CHARGE MAY BE MADE AGAINST THAT ACCOUNT.
CALIFORNIA TAXES
In the opinion of Sullivan & Cromwell, counsel to the Funds, provided that at
the end of each quarter of its taxable year at least 50% of the total assets of
the California Quality or California High-Yield Series consist of federally
tax-exempt obligations of the State of California and its political subdivisions
("California Municipal Securities"), shareholders of each such Series who are
subject to California State taxation on dividends will not be subject to
California personal income taxes on dividends from that Series attributable to
interest received by each such Series on California Municipal Securities as well
as on certain other federally tax-exempt obligations the interest on which is
exempt from California personal income taxes. To the extent that the
distributions are derived from other income, including long- or short-term
capital gains, such distributions will not be exempt from California personal
income taxation, and, further to the extent that they constitute long-term
capital gain dividends they will be taxed as long-term gain to a shareholder.
Interest on indebtedness incurred or continued to purchase or carry shares of
the California Quality or California High-Yield Series will not be deductible
for California personal income tax purposes to the extent such Series'
distributions are exempt from California personal income tax.
Prospective investors should be aware that an investment in these Series may
not be suitable for persons who are not residents of the State of California or
who do not receive income subject to income taxes of the State.
COLORADO TAXES
In the opinion of Ireland, Stapleton, Pryor & Pascoe, P.C., Colorado tax
counsel to the Municipal Fund, individuals, trusts, estates and corporations who
are holders of the Colorado Series and who are subject to the Colorado income
tax will not be subject to Colorado income tax or the Colorado alternative
minimum tax on Colorado Series dividends to the extent that such dividends
qualify as exempt-interest dividends of a regulated investment company under
Section 852(b)(5) of the Code, which are derived from interest income received
by the Colorado Series on (a) obligations of the State of Colorado or its
political subdivisions which are issued on or after May 1,1980, or if issued
before May 1,1980, to the extent such interest is specifically exempt from
income taxation under the laws of the State of Colorado authorizing the issuance
of such obligations, (b) obligations of the United States or its possessions to
the extent included in federal taxable income, or (c) obligations of territories
or possessions of the United States to the extent federal law exempts interest
on such obligations from taxation by the states. To the extent that Colorado
Series distributions are attributable to sources not described in the preceding
sentence, such as long or short-term capital gains, such distributions will not
be exempt from Colorado income tax and may be subject to Colorado's alternative
minimum tax. There are no municipal income taxes in Colorado. As intangibles,
shares in the Colorado Series are exempt from Colorado property taxes.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Colorado Series, at least 80% of the value of the net assets
of the Colorado Series will be maintained in debt obligations which are exempt
from regular federal income tax and Colorado income tax.
The Colorado Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Colorado obligations and
exempt from the Colorado income tax.
FLORIDA TAXES
Florida does not presently impose an income tax on individuals and thus
individual shareholders of the Florida Series will not be subject to any Florida
state income tax on distributions received from the Florida Series. However,
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Florida imposes an intangible personal property tax on shares of the Florida
Series owned by a Florida resident on January 1 of each year unless such shares
qualify for an exemption from that tax. The Municipal Trust has received a
Technical Assistance Advisement from the State of Florida, Department of
Revenue, to the effect that shares of the Florida Series owned by a Florida
resident will be exempt from the Florida Intangible Personal Property Tax so
long as the Florida Series' portfolio includes on January 1 of each year only
assets, such as Florida tax-exempt securities and United States Government
securities, that are exempt from the Florida Intangible Personal Property Tax.
Corporate shareholders may be subject to Florida income taxes depending on the
portion of the income related to the Florida Series that is allocable to Florida
under applicable Florida law.
GEORGIA TAXES
In the opinion of King & Spalding, Georgia tax counsel to the Municipal Fund,
under existing Georgia law, shareholders of the Georgia Series will not be
subject to Georgia income taxes on dividends with respect to shares of the
Georgia Series to the extent that such distributions represent "exempt-interest
dividends" for federal income tax purposes that are attributable to
interest-bearing obligations issued by or on behalf of the State of Georgia or
its political subdivisions, or by the governments of Puerto Rico, the Virgin
Islands or Guam (collectively, "Georgia Obligations"), which are held by the
Georgia Series. Dividends, if any, derived from capital gains or other sources
generally will be taxable to shareholders of the Georgia Series for Georgia
income tax purposes.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Georgia Series, at least 80% of the value of the net assets
of the Georgia Series will be maintained in debt obligations which are exempt
from regular federal income tax and Georgia income taxes.
The Georgia Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Georgia Obligations and exempt
from Georgia income taxes.
LOUISIANA TAXES
In the opinion of Liskow & Lewis, Louisiana tax counsel to the Municipal
Fund, based upon a private ruling obtained from the Louisiana Department of
Revenue and Taxation (the "Department"), and subject to the current policies of
the Department, shareholders of the Louisiana Series who are corporations;
individuals and residents of the State of Louisiana; and, for taxable periods
beginning after December 31, 1996, trusts or estates; all of whom are otherwise
subject to Louisiana income tax, will not be subject to Louisiana income tax on
Louisiana Series dividends to the extent that such dividends are attributable to
interest on tax-exempt obligations of the State of Louisiana or its political or
governmental subdivisions, or its governmental agencies or instrumentalities. To
the extent that distributions on the Louisiana Series are attributable to
sources other than those described in the preceding sentence, such
distributions, including but not limited to, long-term or short-term capital
gains, will not be exempt from Louisiana income tax.
Non-resident individuals maintaining their domicile other than in the State
of Louisiana will not be subject to Louisiana income tax on their Louisiana
Series dividends.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Louisiana Series, the Municipal Fund will maintain at least
80% of the value of the net assets of the Louisiana Series in debt obligations
which are exempt from federal income tax and exempt from Louisiana income tax.
The Louisiana Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Louisiana obligations and
exempt from Louisiana income tax.
MARYLAND TAXES
In the opinion of Venable, Baetjer and Howard, LLP, Maryland tax counsel to
the Municipal Fund, as long as dividends paid by the Maryland Series qualify as
interest excludable under Section 103 of the Code and the Maryland Series
qualifies as a "regulated investment company" under the Code, the portion of
exempt-interest dividends that represents interest received by the Maryland
Series on obligations (a) of Maryland or its political subdivisions and
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authorities, or (b) of the United States or an authority, commission,
instrumentality, possession or territory of the United States, will be exempt
from Maryland state and local income taxes when allocated or distributed to a
shareholder of the Maryland Series.
Gain realized by the Maryland Series from the sale or exchange of a bond
issued by Maryland or a political subdivision of Maryland, or of the United
States or an authority, commission or instrumentality of the United States will
not be subject to Maryland state and local income taxes.
To the extent that distributions of the Maryland Series are attributable to
sources other than those described in the preceding sentences, such as interest
received by the Maryland Series on obligations issued by states other than
Maryland, income earned on repurchase contracts, or gains realized by a
shareholder upon a redemption or exchange of Maryland Series shares, such
distributions will be subject to Maryland state and local income taxes.
Income earned on certain private activity bonds will constitute a Maryland
tax preference for individual shareholders. Interest on indebtedness incurred or
continued (directly or indirectly) by a shareholder of the Maryland Series to
purchase or carry shares of the Maryland Series will not be deductible for
Maryland state and local income tax purposes to the extent such interest is
allocable to exempt-interest dividends.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Maryland Series, at least 80% of the value of the net assets
of the Maryland Series will be maintained in debt obligations which are exempt
from regular federal income tax and are exempt from Maryland state and local
income taxes.
The Maryland Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Maryland obligations and
exempt from Maryland state and local income taxes.
MASSACHUSETTS TAXES
In the opinion of Palmer & Dodge, Massachusetts tax counsel to the Municipal
Fund, assuming that the Municipal Fund gives the notices described at the end of
this section, holders of the Massachusetts Series who are subject to the
Massachusetts personal income tax will not be subject to tax on distributions
from the Massachusetts Series to the extent that these distributions qualify as
exempt-interest dividends of a regulated investment company under Section
852(b)(5) of the Code which are directly attributable to interest on obligations
issued by the Commonwealth of Massachusetts, its instrumentalities or its
political subdivisions or by the government of Puerto Rico or by its authority,
by the government of Guam or by its authority, or by the government of the
Virgin Islands or its authority (collectively, "Massachusetts Obligations").
Except to the extent excluded as capital gain, distributions of income to
Massachusetts holders of the Massachusetts Series that are attributable to
sources other than those described in the preceding sentence will be includable
in the Massachusetts income of the holders of the Massachusetts Series.
Distributions will not be subject to tax to the extent that they qualify as
capital gain dividends which are attributable to obligations issued by the
Commonwealth of Massachusetts, its instrumentalities or political subdivisions
under any provision of law which exempts capital gain on the obligation from
Massachusetts income taxation. Distributions which qualify as capital gain
dividends under Section 852(b)(3)(C) of the Code and which are includable in
Federal gross income will be includable in the Massachusetts income of a holder
of the Massachusetts Series as capital gain.
Massachusetts Series dividends are not excluded in determining the
Massachusetts excise tax on corporations.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Massachusetts Series, the Municipal Fund will maintain at
least 80% of the value of the net assets of the Massachusetts Series in debt
obligations which are exempt from regular federal income tax and Massachusetts
personal income tax.
The Massachusetts Series will notify its shareholders within 60 days after
the close of the year as to the interest and capital gains derived from
Massachusetts Obligations and exempt from Massachusetts personal income tax.
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MICHIGAN TAXES
In the opinion of Dickinson, Wright, Moon, Van Dusen & Freeman, Michigan tax
counsel to the Municipal Fund, holders of the Michigan Series who are subject to
the Michigan income tax or single business tax will not be subject to the
Michigan income tax or single business tax on Michigan Series dividends to the
extent that such distributions qualify as exempt-interest dividends of a
regulated investment company under Section 852(b)(5) of the Code which are
attributable to interest on tax-exempt obligations of the State of Michigan, or
its political or governmental subdivisions, its governmental agencies or
instrumentalities (as well as certain other federally tax-exempt obligations,
the interest on which is exempt from Michigan tax, such as, for example, certain
obligations of Puerto Rico) (collectively, "Michigan Obligations"). To the
extent that distributions on the Michigan Series are attributable to sources
other than those described in the preceding sentence, such distributions,
including, but not limited to, long or short-term capital gains, will not be
exempt from Michigan income tax or single business tax. The Michigan Department
of Treasury has issued a bulletin stating that holders of interests in regulated
investment companies who are subject to the Michigan intangibles tax will be
exempt from the tax to the extent that the investment portfolio consists of U.S.
obligations and obligations of the State of Michigan or of its political
subdivisions. In addition, Michigan Series shares owned by certain financial
institutions or by certain other persons subject to the Michigan single business
tax are not subject to the Michigan intangibles tax. To the extent the
distributions on the Michigan Series are not subject to Michigan income tax,
they are not subject to the uniform city income tax imposed by certain Michigan
cities.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Michigan Series, at least 80% of the value of the net assets
of the Michigan Series will be maintained in debt obligations which are exempt
from regular federal income tax and Michigan income and single business taxes.
The Michigan Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Michigan Obligations and
exempt from Michigan income tax.
MINNESOTA TAXES
In the opinion of Faegre & Benson Professional Limited Liability Partnership,
Minnesota tax counsel to the Municipal Fund, provided that the Minnesota Series
qualifies as a "regulated investment company" under the Code, and subject to the
discussion in the paragraph below, shareholders of the Minnesota Series who are
individuals, estates, or trusts and who are subject to the regular Minnesota
personal income tax will not be subject to such regular Minnesota tax on
Minnesota Series dividends to the extent that such distributions qualify as
exempt-interest dividends of a regulated investment company under Section
852(b)(5) of the Code which are derived from interest income on tax-exempt
obligations of the State of Minnesota, or its political or governmental
subdivisions, municipalities, governmental agencies or instrumentalities
("Minnesota Sources"). The foregoing will apply, however, only if the portion of
the exempt- interest dividends from such Minnesota Sources that is paid to all
shareholders represents 95% or more of the exempt-interest dividends that are
paid by the Minnesota Series. If the 95% test is not met, all exempt- interest
dividends that are paid by the Minnesota Series will be subject to the regular
Minnesota personal income tax. Even if the 95% test is met, to the extent that
exempt-interest dividends that are paid by the Minnesota Series are not derived
from the Minnesota Sources described in the first sentence of this paragraph,
such dividends will be subject to the regular Minnesota personal income tax.
Other distributions of the Minnesota Series, including distributions from net
short-term and long-term capital gains, are generally not exempt from the
regular Minnesota personal income tax.
Legislation enacted in 1995 provides that it is the intent of the Minnesota
legislature that interest income on obligations of Minnesota governmental units,
including obligations of the Minnesota Sources described above, and
exempt-interest dividends that are derived from interest income on such
obligations, be included in the net income of individuals, estates, and trusts
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for Minnesota income tax purposes if it is judicially determined that the
exemption by Minnesota of such interest or such exempt-interest dividends
unlawfully discriminates against interstate commerce because interest income on
obligations of governmental issuers located in other states, or exempt-interest
dividends derived from such obligations, is so included. This provision applies
to taxable years that begin during or after the calendar year in which such
judicial decision becomes final, regardless of the date on which the obligations
were issued, and other remedies apply for previous taxable years. The United
States Supreme Court in 1995 denied certiorari in a case in which an Ohio state
court upheld an exemption for interest income on obligations of Ohio
governmental issuers, even though interest income on obligations of non-Ohio
governmental issuers, was subject to tax.The Ohio Supreme Court, in a subsequent
case involving the same taxpayer and the same issue, recently refused to
reconsider the merits of the case on the ground that the previous final state
court judgment barred any claim arising out of the transaction that was the
subject of the previous action. The taxpayer has appealed to the United States
Supreme Court, which has discretion to decide if it will hear the case. Even if
the Court declines to consider the appeal, it cannot be predicted whether a
similar case will be brought in Minnesota or elsewhere, or what the outcome of
such case would be.
Minnesota presently imposes an alternative minimum tax on individuals,
estates, and trusts that is based, in part, on such taxpayers' federal
alternative minimum taxable income, which includes federal tax preference items.
The Code provides that interest on specified private activity bonds is a federal
tax preference item, and that an exempt-interest dividend of a regulated
investment company constitutes a federal tax preference item to the extent of
its proportionate share of the interest on such private activity bonds.
Accordingly, exempt- interest dividends that are attributable to such private
activity bond interest, even though they are derived from the Minnesota Sources
described above, will be included in the base upon which such Minnesota
alternative minimum tax is computed. In addition, the entire portion of
exempt-interest dividends that is received by such shareholders and that is
derived from sources other than the Minnesota Sources described above is also
subject to the Minnesota alternative minimum tax. Further, should the 95% test
that is described above fail to be met, all of the exempt-interest dividends
that are paid by the Minnesota Series, including all of those that are derived
from the Minnesota Sources described above, will be subject to the Minnesota
alternative minimum tax, in the case of shareholders of the Minnesota Series who
are individuals, estates or trusts.
Subject to certain limitations that are set forth in the Minnesota rules,
Minnesota Series dividends, if any, that are derived from interest on certain
United States obligations are not subject to the regular Minnesota personal
income tax or the Minnesota alternative minimum tax, in the case of shareholders
of the Minnesota Series who are individuals, estates, or trusts.
Minnesota Series distributions, including exempt-interest dividends, are not
excluded in determining the Minnesota franchise tax on corporations that is
measured by taxable income and alternative minimum taxable income. Minnesota
Series distributions may also be taken into account in certain cases in
determining the minimum fee that is imposed on corporations, S corporations, and
partnerships.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Minnesota Series, at least 80% of the value of the net assets
of the Minnesota Series will be maintained in debt obligations which are exempt
from the regular federal income tax. Such debt obligations may, however, be
subject to the federal alternative minimum tax. A similar percentage will
generally also apply with respect to the regular Minnesota personal income tax,
and such debt obligations may likewise be subject to the Minnesota alternative
minimum tax, in each case subject to the entire discussion above. The Minnesota
Series will invest so that the 95% test described above is met.
The Minnesota Series will notify its shareholders within 30 days after the
close of the year as to the interest derived from Minnesota obligations and
exempt from the Minnesota personal income tax, subject to the discussion above.
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MISSOURI TAXES
In the opinion of Bryan Cave LLP, Missouri tax counsel to the Municipal Fund,
dividends distributed to individual shareholders of the Missouri Series will be
exempt from the Missouri personal income tax imposed by Chapter 143 of the
Missouri Revised Statutes to the extent that such dividends qualify as exempt
interest dividends of a regulated investment company under Section 852(b)(5) of
the Code and are derived from interest on obligations of the State of Missouri
or any of its political subdivisions or authorities or obligations issued by the
government of Puerto Rico or its authority (collectively, "Missouri
Obligations"). Capital gain dividends, as defined in Section 852(b)(3) of the
Code, distributable by the Fund to individual resident shareholders of the
Missouri Series, to the extent includable in federal adjusted gross income, will
be subject to Missouri income taxation. Shares in the Missouri Series are not
subject to Missouri personal property taxes.
Dividends paid by the Missouri Series, if any, that do not qualify as tax
exempt dividends under Section 852 (b)(5) of the Code, will be exempt from
Missouri income tax only to the extent that such dividends are derived from
interest on certain U.S. obligations that the State of Missouri is expressly
prohibited from taxing under the laws of the United States. The portion of such
dividends that is not subject to taxation by the State of Missouri may be
reduced by interest, or other expenses, in excess of $500 paid or incurred by a
shareholder in any taxable year to purchase or carry shares of the Missouri
Series of the Municipal Fund or other investments producing income that is
includable in federal gross income, but exempt from Missouri income tax.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Missouri Series, at least 80% of the value of the net assets
of the Missouri Series will be maintained in debt obligations which are exempt
from regular federal income tax and Missouri personal income tax.
The Missouri Series will notify its shareholders within 60 days after the
close of the year as to the interest derived from Missouri Obligations and
exempt from the Missouri personal income tax.
NEW JERSEY TAXES
In the opinion of McCarter & English, New Jersey counsel to the New Jersey
Fund, income distributions paid from a "qualified investment fund" are exempt
from the New Jersey personal income tax, to the extent attributable to
tax-exempt obligations specified by New Jersey law. As defined in N.J.S.A.
54A:6-14.1, a "qualified investment fund" is any investment or trust company, or
series of such investment company or trust registered with the Securities and
Exchange Commission, which for the calendar year in which a distribution is
paid, has (i) no investments other than interest-bearing obligations,
obligations issued at a discount, and cash and cash items, including
receivables, and financial options, futures, forward contracts, or other similar
financial instruments related to interest-bearing obligations, obligations
issued at a discount or bond indices related thereto (such financial options,
etc. being referred to herein as "Financial Instruments"), and (ii) which has at
least 80% of the aggregate principal amount of all its investments, excluding
Financial Instruments, to the extent such instruments are authorized by section
851(b) of the Code, cash and cash items, including receivables, invested in
obligations issued by New Jersey, or in obligations that are free from state or
local taxation under New Jersey and federal laws such as obligations issued by
the governments of Puerto Rico, Guam or the Virgin Islands ("Municipal
Securities"). Interest income and gains realized by the New Jersey Fund upon
disposition of obligations and distributed to the shareholders are exempt from
the New Jersey personal income tax to the extent attributable to Municipal
Securities. Gains resulting from the redemption or sale of shares of the New
Jersey Fund would also be exempt from the New Jersey personal income tax.
The New Jersey personal income tax is not applicable to corporations. For all
corporations subject to the New Jersey Corporation Business Tax, interest on
Municipal Securities is included in the net income tax base for purposes of
computing the corporation business tax. Furthermore, any gain upon the
redemption or sale of shares by a corporate shareholder is also included in the
net income tax base for purposes of computing the Corporation Business Tax.
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The New Jersey Fund will notify shareholders by February 15 of each calendar
year as to the amounts of all such dividends and distributions which are exempt
from federal income taxes and New Jersey personal income tax and the amounts, if
any, which are subject to such taxes. Shareholders are, however, urged to
consult with their own tax advisors as to the federal, state or local tax
consequences in their specific circumstances.
Prospective investors should be aware that an investment in a state municipal
fund may not be suitable for persons who do not receive income subject to income
taxes of such state.
NEW YORK STATE AND CITY TAXES
In the opinion of Sullivan & Cromwell, counsel to the Funds, holders of
shares of the New York Series who are subject to New York State and City tax on
dividends will not be subject to New York State and City personal income taxes
on New York Series dividends to the extent that such distributions qualify as
exempt-interest dividends under Section 852(b)(5) of the Code and represent
interest income attributable to federally tax-exempt obligations of the State of
New York and its political subdivisions (as well as certain other federally
tax-exempt obligations the interest on which is exempt from New York State and
City personal income taxes such as, for example, certain obligations of Puerto
Rico) (collectively, "New York Obligations"). To the extent that distributions
on the New York Series are derived from other income, including long or
short-term capital gains, such distributions will not be exempt from State or
City personal income taxes.
Dividends on the New York Series are not excluded in determining New York
State or City franchise taxes on corporations and financial institutions.
Except during temporary defensive periods or when acceptable investments are
unavailable to the New York Series, the Municipal Fund will maintain at least
80% of the value of the net assets of the New York Series in debt obligations
which are exempt from regular federal income tax and New York State and City
personal income taxes.
The Series will notify its shareholders within 45 days after the close of the
year as to the interest derived from New York Obligations and exempt from New
York State and City personal income taxes.
NORTH CAROLINA TAXES
In the opinion of Horack, Talley, Pharr & Lowndes, P.A., tax counsel to the
North Carolina Series, distributions from the North Carolina Series to
shareholders subject to North Carolina income taxes will not be taxable for
North Carolina income tax purposes to the extent the distributions either (i)
qualify as exempt-interest dividends of a regulated investment company under the
Code and are attributable to interest on obligations issued by the State of
North Carolina and its political subdivisions or (ii) are dividends attributable
to interest on direct obligations of the U.S. government and agencies and
possessions of the United States, so long as in both cases the North Carolina
Series provides a supporting statement to the shareholders designating the
portion of the dividends of the North Carolina Series attributable to interest
on obligations issued by the State of North Carolina and its political
subdivisions or direct obligations of the U.S. government and agencies and
possessions of the United States. In the absence of such a statement, the total
amount of the dividends will be taxable for North Carolina income tax purposes.
Distributions attributable to other sources, including exempt-interest dividends
attributable to interest on obligations of states other than North Carolina and
the political subdivisions of such other states as well as capital gains, will
be taxable for North Carolina income tax purposes.
The North Carolina Series will notify its shareholders within 60 days after
the close of its taxable year as to the amount of dividends and distributions to
the shareholders of the North Carolina Series which are exempt from North
Carolina income taxes and the dollar amount, if any, which is subject to North
Carolina income taxes.
OHIO TAXES
In the opinion of Squire, Sanders & Dempsey L.L.P., Ohio tax counsel to the
Municipal Fund, holders of the Ohio Series who are subject to the Ohio personal
income tax, the net income base of the Ohio corporation franchise tax, or school
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district or municipal income taxes in Ohio will not be subject to such taxes on
dividend distributions with respect to shares of the Ohio Series to the extent
that such distributions are properly attributable to interest (including accrued
original issue discount) on obligations issued by or on behalf of the State of
Ohio, political subdivisions thereof, or agencies or instrumentalities thereof
("Ohio Obligations"), or by the government of Puerto Rico, the Virgin Islands or
Guam, provided that the Ohio Series qualifies as a "regulated investment
company" for federal income tax purposes and that at all times at least 50% of
the value of the total assets of the Ohio Series consists of Ohio Obligations or
similar obligations of other states or their subdivisions. It is assumed for
purposes of this discussion of Ohio taxes that these requirements are satisfied.
Shares of the Ohio Series will be included in a corporation's tax base for
purposes of computing the Ohio corporation franchise tax on the net worth basis.
Dividends on shares of the Ohio Series that are attributable to gain from the
sale, exchange or other disposition of Ohio Obligations held by the Ohio Series
are not subject to the Ohio personal income tax, the net income base of the Ohio
corporation franchise tax, or school district or municipal income taxes in Ohio.
The Ohio Series is not subject to the Ohio personal income tax, Ohio school
district income taxes, the Ohio corporation franchise tax, or the Ohio dealers
in intangibles tax, provided that, with respect to the Ohio corporation
franchise tax and the Ohio dealers in intangibles tax, the Municipal Fund
complies with certain reporting requirements.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Ohio Series, the Municipal Fund will maintain at least 80% of
the value of the net assets of the Ohio Series in debt obligations which are
exempt from regular federal income tax and the Ohio personal income tax and the
net income base of the Ohio corporation franchise tax.
The Ohio Series will notify its shareholders within 60 days after the close
of the year as to the status for Ohio tax purposes of distributions with respect
to shares of the Ohio Series.
OREGON TAXES
In the opinion of Schwabe, Williamson & Wyatt, Oregon tax counsel to the
Municipal Fund, under present law, individual shareholders of the Oregon Series
will not be subject to Oregon personal income taxes on distributions received
from the Oregon Series to the extent that such distributions (1) qualify as
"exempt-interest dividends" under Section 852 (b)(5) of the Code and (2) are
derived from interest on obligations of the State of Oregon or any of its
political subdivisions or authorities or from interest on obligations of the
governments of Puerto Rico, Guam, the Virgin Islands or the Northern Mariana
Islands (collectively, "Oregon Obligations"). Other distributions, including any
long-term and short-term capital gains, will generally not be exempt from
personal income taxes in Oregon.
No portion of distributions from the Oregon Series are exempt from Oregon
excise tax on corporations. However, shares of the Oregon Series are not subject
to Oregon property tax.
Except during temporary defensive periods or when acceptable investments are
unavailable to the Oregon Series, at least 80% of the value of the net assets of
the Oregon Series will be maintained in debt obligations, the interest payments
of which are exempt from regular federal income tax and Oregon personal income
taxes.
The Oregon Series will notify its shareholders within 60 days after the close
of the year as to the interest derived from Oregon Obligations and exempt from
Oregon personal income taxes.
PENNSYLVANIA TAXES
In the opinion of Ballard Spahr Andrews & Ingersoll, Pennsylvania tax counsel
to the Pennsylvania Fund, individual shareholders of the Pennsylvania Fund who
are subject to the Pennsylvania personal income tax will not be subject to
Pennsylvania personal income tax on distributions from the Pennsylvania Fund to
the extent that such distributions are attributable to interest paid on
Pennsylvania Municipal Securities or U.S. Government obligations. Distributions
attributable to most other sources, including distributions attributable to gain
on the sale of such instruments, will not be exempt from Pennsylvania personal
income tax.
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The same rules apply under the tax imposed by the Philadelphia School
District on the unearned income of Philadelphia residents, except that all
capital gain distributions are exempt from the School District tax regardless of
the source from which they are paid.
Corporate shareholders who are subject to the Pennsylvania corporate net
income tax will not be subject to corporate net income tax on distributions from
the Pennsylvania Fund that qualify as "exempt-interest dividends" for federal
income tax purposes or are derived from interest on U.S. Government obligations.
Individual shareholders of the Pennsylvania Fund who are subject to the
Pennsylvania personal property tax will be exempt from Pennsylvania personal
property tax on their shares of the Pennsylvania Fund to the extent that the
Pennsylvania Fund portfolio consists of Pennsylvania Municipal Securities and
U.S. Government obligations on the annual assessment date. Corporations are not
subject to Pennsylvania personal property taxes.
Shareholders will receive an annual Statement of Account and information
regarding the federal and Pennsylvania income tax status of all distributions
made during the year. Information will also be provided to individual
Pennsylvania shareholders regarding the portion of the value of their shares, if
any, subject to Pennsylvania personal property tax.
Prospective investors should be aware that an investment in the Pennsylvania
Fund may not be suitable for persons who are not residents of the State of
Pennsylvania or who do not receive income subject to income taxes of the State.
Investors should also be aware that there is litigation in progress in the
Pennsylvania courts that may result in the personal property tax being declared
unconstitutional in whole or in part.
SOUTH CAROLINA TAXES
In the opinion of Sinkler & Boyd, South Carolina tax counsel to the Municipal
Fund, shareholders of the South Carolina Series who are subject to South
Carolina individual or corporate income taxes will not be subject to such taxes
on South Carolina Series' dividends to the extent that such dividends qualify as
either (1) exempt-interest dividends of a regulated investment company under
Section 852(b)(5) of the Code, which are derived from interest on tax-exempt
obligations of the State of South Carolina or any of its political subdivisions
or on obligations of the Government of Puerto Rico that are exempt from federal
income tax; or (2) dividends derived from interest or dividends on obligations
of the United States and its possessions or on obligations or securities of any
authority or commission exempt from state income taxes under the laws of the
United States (collectively, "South Carolina Obligations"). To the extent that
South Carolina Series' distributions are attributable to other sources, such as
long or short-term capital gains, such distributions will not be exempt from
South Carolina taxes.
Except during temporary defensive periods or when acceptable investments are
unavailable to the South Carolina Series, at least 80% of the value of the net
assets of the South Carolina Series will be maintained in debt obligations which
are exempt from regular federal income tax and South Carolina income tax.
The South Carolina Series will notify its shareholders within 60-days after
the close of the year as to the interest derived from South Carolina Obligations
and exempt from South Carolina income taxes.
OTHER STATE AND LOCAL TAXES
The exemption of interest on municipal securities for federal income tax
purposes does not necessarily result in exemption under the income tax laws of
any state or city. Except as noted above with respect to a particular state,
distributions from a Series may be taxable to investors under state and local
law even though all or a part of such distributions may be derived from
federally tax-exempt sources or from obligations which, if received directly,
would be exempt from such income tax. In some states, shareholders of the
National Series may be afforded tax-exempt treatment on distributions to the
extent they are derived from municipal securities issued by that state or its
localities. Prospective investors should be aware that an investment in a
certain Series may not be suitable for persons who are not residents of the
designated state or who do not receive income subject to income taxes in that
state. Shareholders should consult their own tax advisors.
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SHAREHOLDER INFORMATION
Shareholders will be sent semi-annual reports regarding their Fund. General
information about the Funds may be requested by writing the Corporate
Communications/Investor Relations Department, J. & W. Seligman & Co.
Incorporated, 100 Park Avenue, New York, NY 10017 or telephoning the Corporate
Communications/ Investor Relations Department toll-free by dialing (800)
221-7844 from all continental United States, except New York, or (212) 850-1864
in New York State and the Greater New York City area. Information about
shareholder accounts may be requested by writing Shareholder Services, Seligman
Data Corp., at the same address or by toll-free telephone by dialing (800)
221-2450 from all continental United States. Seligman Data Corp. may be
telephoned Monday through Friday (except holidays), between the hours of 8:30
a.m. and 6:00 p.m. Eastern time and calls will be answered by a service
representative. 24-HOUR AUTOMATED TELEPHONE ACCESS IS AVAILABLE BY DIALING (800)
622-4597 ON A TOUCHTONE PHONE WHICH PROVIDES INSTANT ACCESS TO PRICE, YIELD,
ACCOUNT BALANCE, MOST RECENT TRANSACTION AND OTHER INFORMATION. IN ADDITION,
ACCOUNT STATEMENTS, FORM 1099-DIV AND CHECKBOOKS CAN BE ORDERED. TO INSURE
PROMPT DELIVERY OF CHECKS, ACCOUNT STATEMENTS AND OTHER INFORMATION, SELIGMAN
DATA CORP., SHOULD BE NOTIFIED IMMEDIATELY IN WRITING OF ANY ADDRESS CHANGE.
ADDRESS CHANGES MAY BE TELEPHONED TO SELIGMAN DATA CORP. IF THE SHAREHOLDER HAS
TELEPHONE SERVICES. FOR MORE INFORMATION ABOUT TELEPHONE SERVICES, SEE
"TELEPHONE TRANSACTIONS" ABOVE.
ACCOUNT SERVICES. Shareholders are sent confirmation of financial
transactions.
Other investor services are available. These include:
o INVEST-A-CHECK(R) enables a shareholder to authorize additional purchases
of shares automatically by electronic funds transfer from the shareholder's
saving or checking account, if the bank that maintains the account is a
member of the Automated Clearing House ("ACH"), or by preauthorized checks to
be drawn on the shareholder's checking account at regular monthly intervals
in fixed amounts of $100 or more per fund, or regular quarterly intervals in
fixed amounts of $250 or more per fund, to purchase shares. Accounts may be
established concurrently with the Invest-A-Check(R) Service only if
accom-panied by a $100 minimum investment in conjunction with the monthly
investment option, or a $250 minimum investment in conjunction with the
quarterly investment option. For investments into the Seligman Time Horizon
Matrix(SM) Asset Allocation Program, the minimum amount is $500 at regular
monthly intervals or $1,000 at regular quarterly intervals. (See "Terms and
Conditions" on page 55).
o AUTOMATIC DOLLAR-COST-AVERAGING SERVICE permits a shareholder of shares of
Seligman Cash Management Fund to exchange a specified amount, at regular
monthly intervals in fixed amounts of $100 or more per fund, or regular
quarterly intervals of $250 or more per fund, from shares of any class of the
Cash Management Fund into shares of the same class of any other Seligman
Mutual Fund, registered in the same name. For exchanges into the Seligman
Time Horizon MatrixSM Asset Allocation Program, the minimum amount is $500 at
regular monthly intervals or $1,000 at regular quarterly intervals. The
shareholder's Cash Management Fund account must have a dollar value of at
least $5,000 at the initiation of the service and all shares must be in "book
credit" form. Exchanges will be made at the public offering price.
o DIVIDENDS FROM OTHER INVESTMENTS permits a shareholder to order dividends
payable on shares of other companies to be paid to and invested in additional
shares of the Series or another Seligman Mutual Fund. (Dividend checks must
meet or exceed the required minimum purchase amount and include the
shareholder's name, the name of the Series and the class of shares in which
the investment is to be made and the shareholder's account number.)
o AUTOMATIC CD TRANSFER SERVICE permits a shareholder to instruct a bank to
invest the proceeds of a maturing bank certificate of deposit ("CD") in
shares of any designated Seligman Mutual Fund. Shareholders who wish to use
this service, should contact Seligman Data Corp. or a broker to obtain the
necessary documentation. Banks may charge a penalty on CD assets withdrawn
prior to maturity. Accordingly, it will not normally be advisable to
liquidate a CD before its maturity.
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o AUTOMATIC CASH WITHDRAWAL SERVICE permits payments at regular intervals to
be made to a shareholder who owns or purchases shares worth $5,000 or more
held as book credits. Holders of Class A shares purchased at net asset value
because the purchase amount was $1,000,000 or more should bear in mind that
withdrawals may be subject to a 1% CDSL if made within eighteen months of
purchase of such shares. Holders of Class D shares may elect to use this
service with respect to shares that have been held for at least one year.
(See "Terms and Conditions" on page 55).
o DIRECTED DIVIDENDS allows a shareholder to pay dividends to another person
or to direct the payment of such dividends to another Seligman Mutual Fund
for purchase at net asset value. Dividends on Class A and Class D shares may
be directed only to shares of the same class of another Seligman Mutual Fund.
o OVERNIGHT DELIVERY to service shareholder requests is available for a
$15.00 fee which will be deducted from a shareholder's account, if requested.
o COPIES OF ACCOUNT STATEMENTS will be sent to each shareholder free of
charge for the current year and most recent prior year. Copies of year-end
statements for prior years are available for a fee of $10.00 per year, per
account, with a maximum charge of $150 per account. Statement requests should
be forwarded, along with a check, to Seligman Data Corp.
ADVERTISING A SERIES' PERFORMANCE
From time to time, a Series advertises its "yield," "tax equivalent yield,"
"average annual total return" and "total return," each of which is calculated
separately for each Series' Class A and Class D shares. THESE FIGURES ARE BASED
ON HISTORICAL EARNINGS AND ARE NOT INTENDED TO INDICATE FUTURE PERFORMANCE. The
"yield" of a Series' class refers to the income generated by an investment in
the Series over a 30-day period. This income is then "annualized." That is, the
amount of income generated by the investment during that 30-day period is
assumed to be generated each 30-day period for twelve periods and is shown as a
percentage of the investment. The "tax equivalent yield" is calculated similarly
to the "yield," except that the yield is increased using a stated income tax
rate to demonstrate the taxable yield necessary to produce an after-tax yield
equivalent to the Series. The "average annual total return" is the annual rate
required for the initial payment to grow to the amount which would be received
at the end of the specified period (one year, five years, and ten years or since
the inception of the Series), i.e., the average annual compound rate of return,
assuming the payment of the maximum sales load, if any, when the investment was
first made and that all distributions and dividends by the Series were
reinvested on the reinvestment dates during the period. "Total return" is
calculated with these same assumptions and shows the aggregate return on an
investment in a class over a specified period (one year, five years and ten
years or since the inception of the Series). Class A total return and average
annual total return quoted from time to time are not adjusted for periods prior
to commencement dates, December 27, 1990, in the case of the Florida Series, and
January 1, 1993, in the case of the California High-Yield Series, California
Quality Series, and each Series of the Municipal Fund, for the annual
administration, shareholder services and distribution fee. Such fee, if
reflected, would reduce the performance quoted. The waiver by the Manager of its
fees and reimbursement of certain expenses during certain periods (as set forth
under "Financial Highlights" herein) would positively affect the performance
results quoted.
From time to time, reference may be made in advertising or promotional
material to mutual fund rankings prepared by Lipper Analytical Service, Inc.
("Lipper"), an independent reporting service that monitors the performance of
mutual funds. Lipper ranks funds in various categories by making comparative
calculations using total return. Each Series may quote its Lipper ranking in the
Municipal Bond Fund category or the Single State Municipal Bond Fund category or
its Lipper ranking for all municipal bond funds monitored by Lipper. In
addition, each class of a Series may compare its total return over a certain
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period with the average performance of all funds in these Lipper categories for
the same period. In calculating the total return of a Series' Class A and Class
D shares, the Lipper analysis assumes investment of all dividends and
distributions paid but does not take into account applicable sales loads. A
Series may also refer in advertisements, or in other promotional material to
articles, comments, listings and columns in the financial and other press
pertaining to a Series' performance. Examples of such financial and other press
publications 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., PENSIONS AND INVESTMENTS, SMART MONEY, THE NEW YORK
TIMES, THE WALL STREET JOURNAL, USA TODAY, U.S. NEWS AND WORLD REPORT,
WASHINGTON POST, WORTH MAGAZINE and YOUR MONEY.
ORGANIZATION AND CAPITALIZATION
Each Fund is a non-diversified, open-end management investment company, as
defined in the 1940 Act. The Municipal Fund was incorporated in Maryland on
August 8, 1983. The Municipal Trust was established under the laws of the
Commonwealth of Massachusetts by a Declaration of Trust dated July 27, 1984. The
New Jersey Fund was incorporated in Maryland on March 13, 1987. The Pennsylvania
Fund was organized as an unincorporated trust under the laws of the Commonwealth
of Pennsylvania by a Declaration of Trust dated May 13, 1986.
The Directors or Trustees of the Funds have authority to create and classify
shares of capital stock or beneficial interest in separate Series, without
further action by shareholders. The Declarations of Trust of the Pennsylvania
Fund and the Municipal Trust permit the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest in separate Series. To date,
shares of thirteen Series of the Municipal Fund, four Series of the Municipal
Trust, one Series of the New Jersey Fund and one Series of the Pennsylvania Fund
have been authorized, which shares constitute the interests in the Series
described herein. Further series may be added in the future. Each of the Series'
capital stock or shares of beneficial interest has a par value of $.001 per
share and is divided into two classes. Each share of each Series' Class A and
Class D common stock or beneficial interest, as applicable, is equal as to
earnings, assets and voting privileges, except that each class bears its own
separate distribution and, potentially, certain other class expenses and has
exclusive voting rights with respect to any matter to which a separate vote of
any class is required by the 1940 Act or applicable state law. Each Fund has
adopted a plan (the "Multiclass Plan") pursuant to Rule 18f-3 under the 1940 Act
permitting the issuance and sales of multiple classes of common stock, or
beneficial interest. In accordance with the Articles of Incorporation or
Declaration of Trust of each Fund, the Board of Directors or Trustees may
authorize the creation of additional classes of common stock or beneficial
interest with such characteristics as are permitted by the Multiclass Plan and
Rule 18f-3. The 1940 Act requires that where more than one class exists, each
class must be preferred over all other classes in respect of assets specifically
allocated to such class. All shares have noncumulative voting rights for the
election of directors or trustees, as applicable. Each outstanding share is
fully paid and non-assessable, and each is freely transferable. There are no
liquidation, conversion or preemptive rights.
It is the intention of the Funds not to hold Annual Meetings of Shareholders.
The Directors or Trustees may call Special Meetings of Shareholders for action
by shareholder vote as may be required by the 1940 Act, or a Fund's Articles of
Incorporation or Declaration of Trust. Pursuant to the 1940 Act, shareholders
have to approve the adoption of any management contract, distribution plan and
any changes in fundamental investment policies. Shareholders also have the right
to call a meeting of shareholders for the purpose of voting on the removal of
one or more Directors or Trustees.
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The shareholders of a Massachusetts business trust (the Municipal Trust) or a
Pennsylvania trust (the Pennsylvania Fund), could, under certain circumstances,
be held personally liable as partners of its obligations. However, the
Declaration of Trust of each of the Municipal Trust and the Pennsylvania Fund,
contains an express disclaimer of shareholder liability for acts or obligations
of the Trusts and also provides for indemnification and reimbursement of
expenses out of the Trusts, or Series thereof, for any shareholder held
personally liable for obligations of the Trust, or Series thereof.
THERE IS A POSSIBILITY THAT ONE FUND MIGHT BE LIABLE FOR ANY MISSTATEMENT,
INACCURACY, OR INCOMPLETE DISCLOSURE IN THIS PROSPECTUS CONCERNING ANY OTHER
FUND CONTAINED HEREIN. BASED ON THE ADVICE OF COUNSEL, HOWEVER, THE FUNDS
BELIEVE THAT THE POTENTIAL LIABILITY OF EACH FUND WITH RESPECT TO THE DISCLOSURE
IN THIS PROSPECTUS EXTENDS ONLY TO THE DISCLOSURE RELATING TO SUCH FUND.
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TERMS AND CONDITIONS
GENERAL ACCOUNT INFORMATION
Investments will be made in as many shares of a Series, including fractions
to the third decimal place, as can be purchased at the net asset value plus a
sales load, if applicable, at the close of business on the day payment is
received. If your check received in payment of a purchase of shares is
dishonored for any reason, Seligman Data Corp. may cancel the purchase and may
also redeem additional shares, if any, held in the shareholder's account in an
amount sufficient to reimburse the Fund for any loss it may have incurred and
charge a $10.00 return check fee. Shareholders will receive dividends from
investment income and any distributions from gain realized on investments in
shares or in cash according to the option elected. Dividend and gain options may
be changed by notifying Seligman Data Corp. in writing at least five business
days prior to the payable date. Stock certificates will not be issued unless
requested. Replacement stock certificates will be subject to a surety fee.
INVEST-A-CHECK(R) SERVICE
The Invest-A-Check(R) Service is available to all shareholders. The
application is subject to acceptance by the shareholder's bank and Seligman Data
Corp. Checks in the amount specified will be drawn automatically on the
shareholder's bank on the fifth day of each month unless otherwise specified (or
on the prior business day if such day of the month falls on a weekend or
holiday) in which an investment is scheduled and invested at the close of
business on the same date. After the initial investment, the value of shares
held in your Account must equal not less than two regularly scheduled
investments. If a check is not honored by the shareholder's bank, or if the
value of shares held falls below the required minimum, the Service will be
suspended. In the event that a check is returned marked "unpaid," Seligman Data
Corp. will cancel the purchase, redeem shares held in your account for an amount
sufficient to reimburse a Series for any loss it may have incurred as a result,
and charge a $10.00 return check fee. This fee will be deducted from the
shareholder's account. Service will be reinstated upon written request
indicating that the cause of interruption has been corrected. The Service may be
terminated by the shareholder or Seligman Data Corp. at any time by written
notice. The shareholder agrees to hold the Funds and their agents free from all
liability which may result from acts done in good faith and pursuant to these
terms. Instructions for establishing Invest-A-Check(R) Service are given on the
Account Application. In the event the shareholder exchanges all of the shares
from one Seligman Mutual Fund to another, the shareholder must re-apply for the
Invest-A-Check(R) Service in the Seligman Mutual Fund into which the exchange
was made. In the event of a partial exchange, the Invest-A-Check(R) Service will
be continued, subject to the above conditions, in the Seligman Fund from which
the exchange was made. Accounts established in conjunction with the
Invest-A-Check(R) service must be accompanied by a minimum initial investment of
$100.
AUTOMATIC CASH WITHDRAWAL SERVICE
Automatic Cash Withdrawal Service is available to Class A shareholders and
to Class D shareholders with respect to Class D shares held for one year or
more. A sufficient number of full and fractional shares will be redeemed to
provide the amount required for a scheduled payment. Redemptions will be made at
the asset value at the close of business on the specific day designated by the
shareholder of each month (or on the prior business day if the day specified
falls on a weekend or holiday). Automatic withdrawals of Class A shares which
were purchased at net asset value because the purchase amount was $1,000,000 or
more may be subject to a CDSL if made within 18 months of purchase of such
shares. The shareholder may change the amount of scheduled payments or may
suspend payments by written notice to Seligman Data Corp. at least ten days
prior to the effective date of such a change or suspension. The Service may be
terminated by the shareholder or Seligman Data Corp. at any time by written
notice. It will be terminated upon proper notification of the death or legal
incapacity of the shareholder. Continued payments in excess of dividend income
invested will reduce and ultimately exhaust capital. Withdrawals, concurrent
with purchases of shares of this or any other investment company, will be
disadvantageous to you because of the payment of duplicative sales loads, if
applicable. For this reason, additional purchases of Fund shares are discouraged
when the Withdrawal Service is in effect.
LETTER OF INTENT -- CLASS A SHARES ONLY
Seligman Financial Services, Inc. will hold in escrow shares equal to 5% of
the minimum purchase amount specified. Dividends and distributions on the
escrowed shares will be paid to the shareholder or credited to the shareholder's
account. Upon completion of the specified minimum purchase within the
thirteen-month period, all shares held in escrow will be deposited into the
shareholder's account or delivered to the shareholder. The shareholder may
include the total asset value of shares of the Seligman Mutual Funds (on which
an initial sales load was paid) owned as of the date of a Letter of Intent
toward the completion of the Letter. If the total amount invested within the
thirteen-month period does not equal or exceed the specified minimum purchase,
you will be requested to pay the difference between the amount of the sales load
paid and the amount of the sales load applicable to the total purchase made. If,
within 20 days following the mailing of a written request, the shareholder has
not paid this additional sales load to Seligman Financial Services, Inc.,
sufficient escrowed shares will be redeemed for payment of the additional sales
load. Shares remaining in escrow after this payment will be released to the
shareholder's account. The intended purchase amount may be increased at any time
during the thirteen-month period by filing a revised Agreement for the same
period, provided that your Dealer furnishes evidence that an amount representing
the reduction in sales load under the new Agreement, which becomes applicable on
purchases already made under the original Agreement, will be refunded to the
shareholder and that the required additional escrowed shares are being furnished
by the shareholder.
Shares of Seligman Cash Management Fund, Inc. which have been acquired by an
exchange of shares of another Seligman Mutual Fund on which there is a sales
load may be taken into account in completing a Letter of Intent, or for Right of
Accumulation. However, shares of the Cash Management Fund which have been
purchased directly may not be used for purposes of determining reduced sales
loads on additional purchases of the other Seligman Mutual Funds.
CHECK REDEMPTION SERVICE
The Check Redemption Service is available to Class A shareholders and to
Class D shareholders with respect to Class D shares held for one year or more.
For Class A shares which were purchased at net asset value because the purchase
amount was $1,000,000 or more, check redemption within 18 months of purchase may
be subject to a CDSL. If shares are held in joint names, all shareholders must
sign the Check Redemption section of the Account Application. All checks will
require all signatures unless a lesser number is indicated in the Check
Redemption section. Accounts in the names of corporations, trusts, partnerships,
etc. must list all authorized signatories. In all cases, each signature
guarantees the genuineness of the other signatures. Checks may not be drawn for
less than $500.
The shareholder hereby authorizes Boston Safe Deposit and Trust Co. to honor
checks drawn by the shareholder and to effect a redemption of sufficient shares
in the shareholder's account to cover payment of the check and any applicable
CDSL. Shares in one Series cannot be redeemed to cover a check written on
another Series.
Boston Safe Deposit and Trust Co. shall be liable only for its own
negligence. A Fund will not be liable for any loss, expense or cost arising out
of check redemptions. Each Fund reserves the right to change, modify or
terminate this service at any time upon notification mailed to the address of
record of the shareholder(s).
SELIGMAN DATA CORP. WILL CHARGE A $10.00 PROCESSING FEE FOR ANY CHECK
REDEMPTION DRAFT RETURNED AS UNCOLLECTABLE. THIS CHARGE MAY BE DEDUCTED FROM THE
ACCOUNT AGAINST WHICH THE CHECK WAS DRAWN. NO REDEMPTION OF SHARES PURCHASED BY
CHECK (UNLESS CERTIFIED) WILL BE PERMITTED UNTIL THE FUND RECEIVES NOTICE THAT
THE CHECK HAS CLEARED WHICH MAY BE UP TO 15 DAYS FROM THE CREDIT OF THOSE SHARES
TO A SHAREHOLDER'S ACCOUNT.
55
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STATEMENT OF ADDITIONAL INFORMATION
February 1, 1997
SELIGMAN MUNICIPAL FUND SERIES, INC.
100 Park Avenue
New York, NY 10017
New York City Telephone (212) 850-1864
Toll Free Telephone:
(800) 221-2450 - all continental United States
This Statement of Additional Information expands upon and supplements the
information contained in the current Prospectus of Seligman Municipal Fund
Series, Inc. (the "Fund"), dated February 1, 1997. It should be read in
conjunction with the Prospectus, which may be obtained by writing or calling the
Fund at the above address or telephone numbers. This Statement of Additional
Information, although not in itself a Prospectus, is incorporated by reference
into the Prospectus in its entirety.
Each of the Fund's thirteen series offers two classes of shares. Class A
shares may be purchased at net asset value plus a sales load of up to 4.75%.
Class A shares purchased in an amount of $1,000,000 or more are sold without an
initial sales load but are subject to a contingent deferred sales load ("CDSL")
of 1% (of the current net asset value or the original purchase price, whichever
is less) if such shares are redeemed within eighteen months of purchase. Class D
shares may be purchased at net asset value and are subject to a CDSL of 1% if
redeemed within one year.
Each share of Class A and Class D of a Series represents an identical legal
interest in the investment portfolio of a series of the Fund and has the same
rights except for certain class expenses and except that Class D shares bear a
higher distribution fee that generally will cause the Class D shares to have a
higher expense ratio and pay lower dividends than Class A shares. Each Class has
exclusive voting rights with respect to its distribution plan. Although holders
of Class A and Class D shares have identical legal rights, the different
expenses borne by each Class will result in different dividends. The two classes
also have different exchange privileges.
TABLE OF CONTENTS
Page
Investment Objectives, Policies And Risks ................................. 2
Investment Limitations .................................................... 4
Directors And Officers .................................................... 5
Management And Expenses ................................................... 9
Administration, Shareholder Services
And Distribution Plan .................................................... 12
Portfolio Transactions .................................................... 12
Purchase And Redemption of Fund Shares .................................... 12
Distribution Services ..................................................... 15
Taxes ..................................................................... 17
Valuation ................................................................. 17
Performance Information ................................................... 18
General Information ....................................................... 23
Financial Statements ...................................................... 24
Appendix A ................................................................ 25
Appendix B ................................................................ 28
Appendix C ................................................................ 60
TEA1A
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INVESTMENT OBJECTIVES, POLICIES AND RISKS
The Fund is a non-diversified, open-end management investment company, or
mutual fund, incorporated in Maryland on August 8, 1983. The Fund consists of
thirteen separate Series: the National Municipal Series ("National Series") and
the Colorado Municipal Series, the Georgia Municipal Series, the Louisiana
Municipal Series, the Maryland Municipal Series, the Massachusetts Municipal
Series, the Michigan Municipal Series, the Minnesota Municipal Series, the
Missouri Municipal Series, the New York Municipal Series, the Ohio Municipal
Series, the Oregon Municipal Series and the South Carolina Municipal Series
(collectively, the "State Series").
The National Series seeks to maximize income exempt from regular federal
income taxes to the extent consistent with preservation of capital and with
consideration given to opportunities for capital gain. Each State Series seeks
to maximize income exempt from regular federal income taxes and from the
personal income taxes of such state to the extent consistent with preservation
of capital and with consideration given to opportunities for capital gain.
Each Series of the Fund is expected to invest principally, without
percentage limitations, in municipal securities which on the date of investment
are within the four highest ratings of Moody's Investors Service, Inc.
("Moody's") (Aaa, Aa, A, Baa for bonds; MIG 1, MIG 2, MIG 3, MIG 4 for notes;
P-1 - P-2 for commercial paper) or Standard & Poor's Corporation ("S&P") (AAA,
AA, A, BBB for bonds; SP-1 - SP-2, for notes; A-1+, A-1/A-2 for commercial
paper). Municipal Securities rated in these categories are commonly referred to
as investment grade. Each Series of the Fund may invest in municipal securities
which are not rated, or which do not fall into the credit ratings noted above
if, based upon credit analysis by the Manager, it is believed that such
securities are of comparable quality. In determining suitability of investment
in a lower rated or unrated security, the Manager will take into consideration
asset and debt service coverage, the purpose of the financing, history of the
issuer, existence of other rated securities of the issuer and other
considerations as may be relevant, including comparability to other issuers.
Although securities rated in the fourth rating category are commonly
referred to as investment grade, investment in such securities could involve
risks not usually associated with bonds rated in the first three categories.
Bonds rated BBB by S&P are more likely as a result of adverse economic
conditions or changing circumstance to exhibit a weakened capacity to pay
interest and re-pay principal than bonds in higher rating categories and bonds
rated Baa by Moody's lack outstanding investment characteristics and in fact
have speculative characteristics according to Moody's. Municipal securities in
the fourth rating category of S&P or Moody's will generally provide a higher
yield than do higher rated municipal securities of similar maturities; however,
they are subject to a greater degree of fluctuation in value as a result of
changing interest rates and economic conditions. The market value of the
municipal securities will also be affected by the degree of interest of dealers
to bid for them, and in certain markets dealers may be more unwilling to trade
municipal securities rated in the fourth rating categories than in the higher
rating categories.
A description of the credit rating categories is contained in Appendix A to
this Statement.
From time to time, proposals have been introduced before Congress for the
purpose of restricting or eliminating the federal income tax exemption for
interest on municipal securities and for providing state and local governments
with federal credit assistance. Reevaluation of the Fund's investment objectives
and structure might be necessary in the future due to market conditions which
may result from future changes in the tax laws.
Municipal Securities. Municipal securities include notes and bonds issued by or
on behalf of states, territories, and possessions of the United States and the
District of Columbia, and their political subdivisions, agencies, and
instrumentalities, the interest on which is exempt from regular federal income
taxes and in certain instances, applicable state or local income taxes. Such
securities are traded primarily in the over-the-counter market. A Series may
invest, without percentage limitations, in certain private activity bonds, the
interest on which is treated as a preference item for purposes of the
alternative minimum tax. See "Municipal Securities" in the Prospectus.
Under the Investment Company Act of 1940 (the "1940 Act"), the
identification of the issuer of municipal bonds or notes depends on the terms
and conditions of the obligation. If the assets and revenues of an agency,
authority, instrumentality or other political subdivision are separate from
those of the government creating the subdivision and the obligation is backed
only by the assets and revenues of the subdivision, such subdivision is regarded
as the sole issuer. Similarly, in the case of an industrial development revenue
bond or pollution control revenue bond, if the bond is backed only by the assets
and revenues of the nongovernmental user, the nongovernmental user is regarded
as the sole issuer. If in either case the creating government or another entity
guarantees an obligation, the security is treated as an issue of such guarantor
to the extent of the value of the guarantee.
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Municipal bonds are issued to obtain funds for various public purposes,
including the construction of a wide range of public facilities such as
airports, bridges, highways, housing, hospitals, mass transportation, schools,
streets, water and sewer works, and gas and electric utilities. Municipal bonds
also may be issued in connection with the refunding of outstanding obligations,
obtaining funds to lend to other public institutions, and for general operating
expenses. Industrial development bonds, which are considered municipal bonds if
the interest paid thereon is exempt from regular federal income tax (such
interest, however, may be subject to the federal alternative minimum tax), are
issued by or on behalf of public authorities to obtain funds to provide various
privately-operated facilities for business and manufacturing, housing, sports,
pollution control, and for airport, mass transit, port and parking facilities.
The two principal classifications of municipal bonds are "general
obligation" and "revenue". General obligation bonds are secured by the issuer's
pledge of its full faith, credit and taxing power for the payment of principal
and interest. Revenue bonds are payable only from the revenues derived from a
particular facility or class of facilities or, in some cases, from the proceeds
of a special excise tax or other specific revenue source. Although industrial
development bonds ("IDBs") are issued by municipal authorities, they are
generally secured by the revenues derived from payments of the industrial user.
The payment of principal and interest on IDBs is dependent solely on the ability
of the user of the facilities financed by the bonds to meet its financial
obligations and the pledge, if any, of real and personal property so financed as
security for such payment.
Floating Rate and Variable Rate Securities. Each Series may invest in
participation interests purchased from banks in variable rate municipal
securities (such as industrial development bonds) owned by banks. A
participation interest gives the purchaser an undivided interest in the
municipal security in the proportion that the Series' participation interest
bears to the total principal amount of the municipal security and provides the
demand repurchase feature described in the Prospectus. Participations are
frequently backed by an irrevocable letter of credit or guarantee of a bank that
the Manager has determined meets the prescribed quality standards for the
Series. A Series has the right to sell the instrument back to the bank and draw
on the letter of credit on demand, on seven days' notice, for all or any part of
the Series' participation interest in the municipal security, plus accrued
interest. Each Series intends to exercise the demand under the letter of credit
only (1) upon a default under the terms of the documents of the municipal
security, (2) as needed to provide liquidity in order to meet redemptions, or
(3) to maintain a high quality investment portfolio. Banks will retain a service
and letter of credit fee and a fee for issuing repurchase commitments in an
amount equal to the excess of the interest paid on the municipal securities over
the negotiated yield at which the instruments are purchased by a Series.
When-Issued Securities. Each Series may purchase municipal securities on a
"when-issued" basis. Municipal securities purchased on a when-issued basis and
the securities held in each Series are subject to changes in market value based
upon the public's perception of the creditworthiness of the issuer and changes,
real or anticipated, in the level of interest rates (which will generally result
in similar changes in value, i.e., both experiencing appreciation when interest
rates decline and depreciation when interest rates rise). Therefore, to the
extent a Series remains substantially fully invested at the same time that it
has purchased securities on a when-issued basis, there will be a greater
possibility that the market value of a Series' assets will vary. Purchasing a
municipal security on a when-issued basis can involve a risk that the yields
available in the market when the delivery takes place may be higher than those
obtained on the security so purchased.
Taxable Investments. Under normal market conditions, each Series will attempt to
invest 100% and as a matter of fundamental policy will invest at least 80% of
the value of its net assets in securities the interest on which is exempt from
regular federal income tax and California personal income tax. Such interest,
however, may be subject to the federal alternative minimum tax. In abnormal
market conditions, if, in the judgment of the Manager, the municipal securities
satisfying the Series' investment objectives may not be purchased, a Series may,
for defensive purposes, temporarily invest in instruments the interest on which
is exempt from regular federal income taxes, but not California personal income
taxes. Such securities would include those described under "California Municipal
Securities" above that would otherwise meet the Series' objectives.
Also, in abnormal market conditions, a Series may invest on a temporary
basis in fixed-income securities, the interest on which is subject to federal,
state or local income taxes, pending the investment or reinvestment in municipal
securities of proceeds of sales of shares or sales of portfolio securities, in
order to avoid the necessity of liquidating portfolio investments to meet
redemptions of shares by investors or where market conditions due to rising
interest rates or other adverse factors warrant temporary investing for
defensive purposes. Investments in taxable securities will be substantially in
securities issued or guaranteed by the United States Government (such as bills,
notes and bonds), its agencies, instrumentalities or authorities; highly-rated
corporate debt securities (rated AA-, or better, by Standard & Poor's
Corporation ("S&P") or Aa3, or better, by Moody's Investors Service, Inc.
("Moody's")); prime commercial paper (rated A-1+/A-1 by S&P or P-1 by Moody's);
and
3
<PAGE>
certificates of deposit of the 100 largest domestic banks in terms of assets
which are subject to regulatory supervision by the U.S. Government or state
governments and the 50 largest foreign banks in terms of assets with branches or
agencies in the United States. Investments in certificates of deposit of foreign
banks and foreign branches of U.S. banks may involve certain risks, including
different regulation, use of different accounting procedures, political or other
economic developments, exchange controls, or possible seizure or nationalization
of foreign deposits.
Such temporary investments in federal but not state municipal securities
and fully taxable securities will be limited as a matter of fundamental policy
to 20% of the value of a Series' net assets under normal market conditions.
Portfolio Turnover. A Series' investment policies may lead to frequent changes
in investments, particularly in periods of rapidly fluctuating interest rates. A
change in securities held by a Series is known as "portfolio turnover" and may
involve the payment by the Series of dealer spreads or underwriting commissions,
and other transaction costs, on the sale of securities, as well as on the
reinvestment of the proceeds in other securities. A Series' portfolio turnover
rate is calculated by dividing the lesser of purchases or sales of portfolio
securities for the fiscal year by the monthly average of the value of the
portfolio securities owned during the year. Securities whose maturity or
expiration date at the time of acquisition were one year or less are excluded
from the calculation. The portfolio turnover rates for each Series for the
fiscal years ended September 30, 1996 and 1995 were: National - 33.99% and
24.91%; Colorado -12.39% and 14.70%, Georgia - 16.24% and 3.36%, Louisiana -
10.08% and 4.82%, Maryland - 5.56% and 3.63%, Massachusetts - 26.30% and 16.68%,
Michigan - 19.62% and 20.48%; Minnesota - 26.89% and 5.57%; Missouri - 8.04% and
3.88%; New York - 25.88% and 34.05%; Ohio - 12.90% and 2.96%; Oregon - 28.65%
and 2.47% and South Carolina - 20.66% and 4.13%. The fluctuation of portfolio
turnover ratios of certain Series during 1996 and 1995 resulted from conditions
in a specific state and the market in general.
INVESTMENT LIMITATIONS
Under each Series' fundamental policies, which cannot be changed except by
vote of a majority of the outstanding voting securities of the Series, the
Series may not:
1. Borrow money, except from banks for temporary purposes (such as meeting
redemption requests or for extraordinary or emergency purposes) in an
amount not to exceed 10% of the value of its total assets at the time the
borrowing is made (not including the amount borrowed). A Series will not
purchase additional portfolio securities if such Series has outstanding
borrowings in excess of 5% of the value of its total assets;
2. Mortgage or pledge any of its assets, except to secure permitted borrowings
noted above;
3. Invest more than 25% of total assets at market value in any one industry;
except that municipal securities and securities of the U.S. Government, its
agencies and instrumentalities are not considered an industry for purposes
of this limitation;
4. As to 50% of the value of its total assets, purchase securities of any
issuer if immediately thereafter more than 5% of total assets at market
value would be invested in the securities of any issuer (except that this
limitation does not apply to obligations issued or guaranteed by the U.S.
Government or its agencies or instrumentalities);
5. Invest in securities issued by other investment companies, except in
connection with a merger, consolidation, acquisition or reorganization;
6. Purchase or hold any real estate, including limited partnership interests
on real property, except that the Fund may invest in securities secured by
real estate or interests therein or issued by persons (other than real
estate investment trusts) which deal in real estate or interests therein;
7. Purchase or hold the securities of any issuer, if to its knowledge,
directors or officers of the Fund individually owning beneficially more
than 0.5% of the securities of that issuer own in the aggregate more than
5% of such securities;
8. Write or purchase put, call, straddle or spread options; purchase
securities on margin or sell "short"; or underwrite the securities of other
issuers;
9. Purchase or sell commodities or commodity contracts; or
4
<PAGE>
10. Make loans except to the extent that the purchase of notes, bonds or other
evidences of indebtedness or the entry into repurchase agreements or
deposits with banks may be considered loans. The Fund has no present
intention of entering into repurchase agreements.
As a matter of policy, with respect to 75% of a Series' assets, no revenue
bond will be purchased by a Series if as a result of such purchase more than 5%
of such Series' assets would be invested in the revenue bonds of a single
issuer. This policy is not fundamental and may be changed by the Directors
without shareholder approval.
Under the 1940 Act, a "vote of a majority of the outstanding voting
securities" of the Fund or of a particular Series means the affirmative vote of
the lesser of (1) more than 50% of the outstanding shares of the Fund or of such
Series or (2) 67% or more of the shares of the Fund or of such Series present at
a shareholders' meeting if more than 50% of the outstanding shares of the Fund
or of such Series are represented at the meeting in person or by proxy.
DIRECTORS AND OFFICERS
Directors and officers of the Fund, together with information as to their
principal business occupations during the past five years are shown below. Each
Director who is an "interested person" of the Fund, as defined in the 1940 Act,
is indicated by an asterisk. Unless otherwise indicated, their addresses are 100
Park Avenue, New York, NY 10017.
WILLIAM C. MORRIS* Director, Chairman of the Board, Chief
(58) Executive Officer and Chairman of the
Executive Committee
Managing Director and Chairman, J. & W.
Seligman & Co. Incorporated, investment
managers and advisers; and Seligman
Advisors, Inc., advisers; Chairman and
Chief Executive Officer, the Seligman
Group of Investment Companies; Chairman,
Seligman Financial Services, Inc.,
broker/dealer; Seligman Holdings, Inc.,
holding company; Seligman Services,
Inc., broker/dealer; and Carbo Ceramics
Inc., ceramic proppants for oil and gas
industry; Director or Trustee, Seligman
Data Corp., shareholder service agent;
Kerr-McGee Corporation, diversified
energy company; and Sarah Lawrence
College; and a Member of the Board of
Governors of the Investment Company
Institute; formerly, President, J. & W.
Seligman & Co. Incorporated, Chairman,
Seligman Securities, Inc.,
broker/dealer; and J. & W. Seligman
Trust Company, trust company ; formerly,
Daniel Industries, Inc., manufacturer of
oil and gas metering equipment.
BRIAN T. ZINO* Director, President and Member of the
(44) Executive Committee
Director, President and Managing
Director, J. & W. Seligman & Co.
Incorporated, investment managers and
advisers; and Seligman Advisors, Inc.,
advisers; Director or Trustee, the
Seligman Group of Investment Companies;
President, (with the exception of
Seligman Quality Municipal Fund, Inc.
and Seligman Select Municipal Fund,
Inc.) and Director or Trustee, the
Seligman Group of Investment Companies;
Chairman, Seligman Data Corp.,
shareholder service agent; Director,
Seligman Financial Services, Inc.,
broker/dealer; and Seligman Services,
Inc., broker/dealer; Senior Vice
President, Seligman Henderson Co.,
advisers; formerly, Director and
Secretary, Chuo Trust - JWS Advisors,
Inc., advisers; and Director, J. & W.
Seligman Trust Company, trust company
and Seligman Securities, Inc.,
broker/dealer.
5
<PAGE>
RONALD T. SCHROEDER* Director and Member of the Executive
(48) Committee
Director, Managing Director and Chief
Investment Officer, Institutional, J. &
W. Seligman & Co. Incorporated,
investment managers and advisers; and
Seligman Advisors, Inc., advisers;
Director or Trustee, the Seligman Group
of Investment Companies; Director,
Seligman Holdings, Inc., holding
company; Seligman Financial Services,
Inc., broker/dealer; Seligman Henderson
Co., advisers; and Seligman Services,
Inc., broker/dealer; formerly,
President, of the Seligman Group of
Investment Companies, except Seligman
Quality Municipal Fund, Inc. and
Seligman Select Municipal Fund, Inc.;
and Director, J. & W. Seligman Trust
Company, trust company; Seligman Data
Corp., shareholder service agent; and
Seligman Securities, Inc.,
broker/dealer.
FRED E. BROWN* Director
(83)
Director and Consultant, J. & W.
Seligman & Co. Incorporated, investment
managers and advisers; Director or
Trustee, the Seligman Group of
Investment Companies; Seligman Financial
Services, Inc., broker/dealer; Seligman
Services, Inc., broker/dealer; Trudeau
Institute, non-profit biomedical
research organization; Lake Placid
Center for the Arts, cultural
organization; and Lake Placid Education
Foundation, education foundation;
formerly, Director, Seligman Securities,
Inc., broker/dealer; and J. & W.
Seligman Trust Company, trust company.
JOHN R. GALVIN Director
(67)
Dean, Fletcher School of Law and
Diplomacy at Tufts University; Director
or Trustee, the Seligman Group of
Investment Companies; Chairman, American
Council on Germany; a Governor of the
Center for Creative Leadership;
Director, USLIFE, insurance; National
Committee on U.S.-China Relations,
National Defense University; the
Institute for Defense Analysis; Raytheon
Co., electronics; and Consultant,
Thomson CSF, electronics; formerly,
Ambassador, U.S. State Department;
Distinguished Policy Analyst at Ohio
State University and Olin Distinguished
Professor of National Security Studies
at the United States Military Academy.
From June, 1987 to June, 1992, he was
the Supreme Allied Commander, Europe and
the Commander-in-Chief, United States
European Command. Tufts University,
Packard Avenue, Medford, MA 02155
ALICE S. ILCHMAN Director
(61)
President, Sarah Lawrence College;
Director or Trustee, the Seligman Group
of Investment Companies; Chairman, The
Rockefeller Foundation, charitable
foundation; and Director, NYNEX,
telephone company; and the Committee for
Economic Development; formerly, Trustee,
The Markle Foundation, philanthropic
organization; and Director,
International Research and Exchange
Board, intellectual exchanges. Sarah
Lawrence College, Bronxville, New York
10708
FRANK A. McPHERSON Director
(63)
Chairman of the Board and Chief
Executive Officer, Kerr-McGee
Corporation, energy and chemicals;
Director or Trustee, the Seligman Group
of Investment Companies; Director,
Kimberly-Clark Corporation, consumer
products; Bank of Oklahoma Holding
Company; American Petroleum Institute;
Oklahoma City Chamber of Commerce;
Baptist Medical Center; Oklahoma Chapter
of the Nature Conservancy; Oklahoma
Medical Research Foundation; and United
Way Advisory Board; Chairman of Oklahoma
City Public Schools Foundation; and
Member of the Business Roundtable and
National Petroleum Council.
123 Robert S. Kerr Avenue, Oklahoma
City, OK 73102
6
<PAGE>
JOHN E. MEROW* Director
(67)
Chairman and Senior Partner, Sullivan &
Cromwell, law firm; Director or Trustee,
the Seligman Group of Investment
Companies; Municipal Art Society of New
York; Commonwealth Aluminum Corporation;
the U.S. Council for International
Business; and the U.S.-New Zealand
Council; Chairman, American Australian
Association; Member of the American Law
Institute and Council on Foreign
Relations; and Member of the Board of
Governors of Foreign Policy Association
and New York Hospital.
125 Broad Street, New York, NY 10004
BETSY S. MICHEL Director
(54)
Attorney; Director or Trustee, the
Seligman Group of Investment Companies;
Trustee, Geraldine R. Dodge Foundation,
charitable foundation; Chairman of the
Board of Trustees of St. George's School
(Newport, RI); formerly, Director, the
National Association of Independent
Schools (Washington, DC), education.
St. Bernard's Road, P. O. Box 449,
Gladstone, NJ 07934
JAMES C. PITNEY Director
(69)
Partner, Pitney, Hardin, Kipp & Szuch,
law firm; Director or Trustee, the
Seligman Group of Investment Companies
and Public Service Enterprise Group,
public utility.
Park Avenue at Morris County, P.O. Box
1945, Morristown, NJ 07962-1945
JAMES Q. RIORDAN Director
(69)
Director, Various Corporations; Director
or Trustee, the Seligman Group of
Investment Companies; The Houston
Exploration Company, The Brooklyn
Museum; The Brooklyn Union Gas Company;
The Committee for Economic Development;
Dow Jones & Co. Inc. and Public
Broadcasting Service; formerly,
Co-Chairman of the Policy Council of the
Tax Foundation; Director and President,
Bekaert Corporation; and Director,
Tesoro Petroleum Companies, Inc.
675 Third Avenue, Suite 3004, New York,
NY 10017
ROBERT L. SHAFER Director
(64)
Director, Various Corporations; Director
or Trustee, the Seligman Group of
Investment Companies; and USLIFE
Corporation, life insurance; formerly,
Vice President, Pfizer Inc.,
pharmaceuticals.
235 East 42nd Street, New York, NY 10017
JAMES N. WHITSON Director
(61)
Executive Vice President, Chief
Operating Officer and Director, Sammons
Enterprises, Inc.; Director or Trustee,
the Seligman Group of Investment
Companies; Red Man Pipe and Supply
Company and C-SPAN.
300 Crescent Court, Suite 700, Dallas,
TX 75202
7
<PAGE>
THOMAS G. MOLES Vice President and Senior Portfolio
(53) Manager
Director and Managing Director,
(formerly, Vice President and Portfolio
Manager), J. & W. Seligman & Co.
Incorporated, investment managers and
advisers; Vice President and Portfolio
Manager, three other open-end investment
companies in the Seligman Family of
Mutual Funds; President and Portfolio
Manager, Seligman Quality Municipal
Fund, Inc. and Seligman Select Municipal
Fund, Inc., closed-end investment
companies; Director, Seligman Financial
Services, Inc., broker/dealer; Seligman
Services, Inc., broker/dealer; and J. &
W. Seligman Trust Company, trust
company; formerly, Director, Seligman
Securities, Inc., broker/dealer.
LAWRENCE P. VOGEL Vice President
(40)
Senior Vice President, Finance, J. & W.
Seligman & Co. Incorporated, investment
managers and advisers; Seligman
Financial Services, Inc., broker/dealer;
and Seligman Advisors, Inc., advisers;
and Seligman Data Corp., shareholder
service agent; Vice President, the
Seligman Group of Investment Companies;
and Seligman Services, Inc.,
broker/dealer; and Treasurer, Seligman
Holdings, Inc., holding company; and
Seligman Henderson Co., advisers;
formerly, Senior Vice President,
Seligman Securities, Inc.,
broker/dealer; and Senior Vice
President, J. & W. Seligman Trust
Company, trust company.
FRANK J. NASTA Secretary
(32)
Senior Vice President, Law and
Regulation and Corporate Secretary, J. &
W. Seligman & Co. Incorporated,
investment managers and advisers and
Seligman Advisors Inc., advisers;
Secretary, the Seligman Group of
Investment Companies, Seligman Financial
Services, Inc., broker/dealer; Seligman
Henderson Co., advisers; Seligman
Services, Inc., broker/dealer; and
Seligman Data Corp., shareholder service
agent; formerly, Secretary, J. & W.
Seligman Trust Company, trust company,
and attorney, Seward & Kissel, law firm.
THOMAS G. ROSE Treasurer
(39)
Treasurer, the Seligman Group of
Investment Companies and Seligman Data
Corp., shareholder service agent;
formerly, Treasurer, American Investors
Advisors, Inc. and the American
Investors Family of Funds.
The Executive Committee of the Board acts on behalf of the Board between
meetings to determine the value of securities and assets owned by the Series for
which no market valuation is available and to elect or appoint officers of the
Fund to serve until the next meeting of the Board.
8
<PAGE>
Compensation Table
<TABLE>
<CAPTION>
Pension or Total Compensation
Aggregate Retirement Benefits from Fund and
Name and Compensation Accrued as part of Fund Complex Paid
Position with Registrant from Fund(1) Fund Expenses to Directors (2)
------------------------ ------------ ------------- ----------------
<S> <C> <C> <C>
William C. Morris, Director and Chairman N/A N/A N/A
Brian T. Zino, Director and President N/A N/A N/A
Ronald T. Schroeder, Director N/A N/A N/A
Fred E. Brown, Director N/A N/A N/A
John R. Galvin, Director $4,361.72 N/A $ 65,000.00
Alice S. Ilchman, Director 4,397.44 N/A 66,000.00
Frank A. McPherson 4,397.44 N/A 66,000.00
John E. Merow, Director 4,397.44(d) N/A 66,000.00(d)
Betsy S. Michel, Director 4,397.44 N/A 66,000.00
James C. Pitney, Director 4,361.72 N/A 65,000.00
James Q. Riordan, Director 4,397.44 N/A 66,000.00
Robert L. Shafer, Director 4,397.44 N/A 66,000.00
James N. Whitson, Director 4,397.44(d) N/A 66,000.00(d)
</TABLE>
(1) For the fiscal year ended September 30, 1996.
(2) As defined in the Fund's Prospectus, the Seligman Group of Investment
Companies consists of seventeen investment companies.
(d) Deferred. The total amounts of deferred compensation (including interest)
payable in respect of the Fund to Messrs. Merow and Whitson as of September
30, 1996 were $79,414 and $21,927, respectively. Mr. Pitney no longer
defers current compensation; however, he has accrued deferred compensation
in the amount of $57,456 as of September 30, 1996.
The Fund has a compensation arrangement under which outside directors may
elect to defer receiving their fees. Under this arrangement, interest is accrued
on the deferred balances. The annual cost of such interest is included in the
directors' fees and expenses, and the accumulated balance thereof as of
September 30, 1996 of $158,797 is included in other liabilities in the Fund's
financial statements.
Directors and officers of the Funds are also directors and officers of some
or all of the other investment companies in the Seligman Group.
Directors and officers of the Fund as a group owned less than 1% of the
Class A capital stock of the National Series at January 10, 1997. Directors and
officers of the Fund as a group owned 503,629 shares or 4.93% of the Class A
capital stock of the New York Series at January 10, 1997. As of the same date,
no Directors or officers of the Fund owned Class A capital stock of any other
Series of the Fund nor did they own any Class D capital stock of any Series of
the Fund.
MANAGEMENT AND EXPENSES
Under the Management Agreement, dated December 29, 1988, subject to the
control of the Board of Directors, the Manager manages the investment of the
assets of the Fund, including making purchases and sales of portfolio securities
consistent with the Series' investment objectives and policies, and administers
the Fund's business and other affairs. The Manager provides the Fund with such
office space, administrative and other services, and executive and other
personnel as are necessary for Fund operations. The Manager pays all of the
compensation of directors of the Fund who are employees or consultants of the
Manager and of the officers and employees of the Fund.
The Manager is entitled to receive a management fee from each Series for
its services, calculated daily and payable monthly, equal to 0.50% per annum of
the average daily net assets of each Series. The Manager, at its discretion may
waive all or a portion of its management fee with respect to a particular
Series. The following chart indicates the management fees
9
<PAGE>
paid by each Series as well as the percentage such fee represents of a Series'
average daily net assets for the fiscal years ended September 30, 1996, 1995 and
1994.
<TABLE>
<CAPTION>
Series/Fiscal Year Management Fee Paid % of Average Daily Net Assets
- ------------------ ------------------- -----------------------------
<S> <C> <C>
National Series
Year ended 9/30/96 $ 523,545 0.50%
Year ended 9/30/95 540,874 0.50
Year ended 9/30/94 621,285 0.50
Colorado Series
Year ended 9/30/96 267,392 0.50
Year ended 9/30/95 277,393 0.50
Year ended 9/30/94 318,834 0.50
Georgia Series
Year ended 9/30/96 285,693 0.50
Year ended 9/30/95 272,768 0.45*
Year ended 9/30/94 194,686 0.30*
Louisiana Series
Year ended 9/30/96 301,833 0.50
Year ended 9/30/95 309,651 0.50
Year ended 9/30/94 330,062 0.50
Maryland Series
Year ended 9/30/96 283,435 0.50
Year ended 9/30/95 283,135 0.50
Year ended 9/30/94 305,335 0.50
Massachusetts Series
Year ended 9/30/96 571,658 0.50
Year ended 9/30/95 580,271 0.50
Year ended 9/30/94 648,895 0.50
Michigan Series
Year ended 9/30/96 759,311 0.50
Year ended 9/30/95 749,963 0.50
Year ended 9/30/94 791,875 0.50
Minnesota Series
Year ended 9/30/96 659,120 0.50
Year ended 9/30/95 672,792 0.50
Year ended 9/30/94 702,194 0.50
Missouri Series
Year ended 9/30/96 254,770 0.50
Year ended 9/30/95 233,342 0.45*
Year ended 9/30/94 201,744 0.36*
New York Series
Year ended 9/30/96 423,159 0.50
Year ended 9/30/95 432,770 0.50
Year ended 9/30/94 491,715 0.50
Ohio Series
Year ended 9/30/96 839,336 0.50
Year ended 9/30/95 847,530 0.50
Year ended 9/30/94 909,119 0.50
Oregon Series
Year ended 9/30/96 301,447 0.50
Year ended 9/30/95 270,412 0.45*
Year ended 9/30/94 241,140 0.39*
South Carolina Series
Year ended 9/30/96 567,688 0.50
Year ended 9/30/95 563,437 0.50
Year ended 9/30/94 611,278 0.50
</TABLE>
* The Manager waived a portion of its management fee due for this year.
10
<PAGE>
The Fund pays all its expenses other than those assumed by the Manager,
including brokerage commissions, if any, fees and expenses of independent
attorneys and auditors, taxes and governmental fees, including fees and expenses
of qualifying the Fund and its shares under federal and state securities laws,
cost of stock certificates and expenses of repurchase or redemption of shares,
expenses of printing and distributing reports, notices and proxy materials to
shareholders, expenses of printing and filing reports and other documents with
governmental agencies, expenses of shareholders' meetings, expenses of corporate
data processing and related services, shareholder account services, fees and
disbursements of transfer agents and custodians, expenses of disbursing
dividends and distributions, fees and expenses of directors of the Fund not
employed by or serving as a Director of the Manager or its affiliates, insurance
premiums and extraordinary expenses such as litigation expenses. The Fund's
expenses are allocated between the Series in a manner determined by the Board of
Directors to be fair and equitable.
The Management Agreement also provides that the Manager will not be liable
to the Fund for any error of judgment or mistake of law, or for any loss arising
out of any investment, or for any act or omission in performing its duties under
the Management Agreement, except for willful misfeasance, bad faith, gross
negligence, or reckless disregard of its obligations and duties under the
Management Agreement. The Manager also provides senior management for Seligman
Data Corp., the Fund's shareholder service agent.
The Management Agreement was unanimously adopted by the Board of Directors
at a Meeting held on October 11, 1988 and was approved by the shareholders at a
meeting held on December 16, 1988. The Management Agreement with respect to a
Series will continue in effect until December 29 of each year if (1) such
continuance is approved in the manner required by the 1940 Act (i.e., by a vote
of a majority of the Board of Directors or of the outstanding voting securities
of the Series and by a vote of a majority of the Directors who are not parties
to the Management Agreement or interested persons of any such party) and (2) the
Manager shall not have notified the Fund at least 60 days prior to December 29
of any year that it does not desire such continuance. The Management Agreement
may be terminated by a Series, without penalty, on 60 days' written notice to
the Manager and will terminate automatically in the event of its assignment. The
Fund has agreed to change its name upon termination of the Management Agreement
if continued use of the name would cause confusion in the context of the
Manager's business.
The Manager is a successor firm to an investment banking business founded
in 1864 which has thereafter provided investment services to individuals,
families, institutions and corporations. On December 29, 1988, a majority of the
outstanding voting securities of the Manager was purchased by Mr. William C.
Morris and a simultaneous recapitalization of the Manager occurred. See Appendix
C for further history of the Manager.
Officers, directors and employees of the Manager are permitted to engage in
personal securities transactions, subject to the Manager's Code of Ethics (the
"Ethics Code"). The Ethics Code proscribes certain practices with regard to
personal securities transactions and personal dealings, provides a framework for
the reporting and monitoring of personal securities transactions by the
Manager's Director of Compliance, and sets forth a procedure of identifying, for
disciplinary action, those individuals who violate the Ethics Code. The Ethics
Code prohibits each of the officers, directors and employees (including all
portfolio managers) of the Manager from purchasing or selling any security that
the officer, director or employee knows or believes (i) was recommended by the
Manager for purchase or sale by any client, including the Fund, within the
preceding two weeks, (ii) has been reviewed by the Manager for possible purchase
or sale within the preceding two weeks, (iii) is being purchased or sold by any
client, (iv) is being considered by a research analyst, (v) is being acquired in
a private placement, unless prior approval has been obtained from the Manager's
Director of Compliance, or (vi) is being acquired during an initial or secondary
public offering. The Ethics Code also imposes a strict standard of
confidentiality and requires portfolio managers to disclose any interest they
may have in the securities or issuers that they recommend for purchase by any
client.
The Ethics Code also prohibits (i) each portfolio manager or member of an
investment team from purchasing or selling any security within seven calendar
days of the purchase or sale of the security by a client's account (including
investment company accounts) for which the portfolio manager or investment team
manages and (ii) each employee from engaging in short-term trading (a purchase
and sale or vice-versa within 60 days). Any profit realized pursuant to either
of these prohibitions must be disgorged.
Officers, directors and employees are required, except under very limited
circumstances, to engage in personal securities transactions through the
Manager's order desk. The order desk maintains a list of securities that may not
be purchased due to a possible conflict with clients. All officers, directors
and employees are also required to disclose all securities beneficially owned by
them on December 31 of each year.
11
<PAGE>
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION PLAN
An Administration, Shareholder Services and Distribution Plan (the "Plan")
for the Fund is in effect under Section 12(b) of the 1940 Act and Rule 12b-1
thereunder.
The Plan was approved on July 16, 1992 by the Directors including a
majority of the Directors who are not "interested persons" (as defined in the
1940 Act) of the Fund and who have no direct or indirect financial interest in
the operation of the Plan or in any agreement related to the Plan (the
"Qualified Directors") and was approved by shareholders of the Fund on November
23, 1992. The plan became effective on January 1, 1993.
Amendments to the Plan were approved in respect of the Class D shares on
November 18, 1993 by the Directors, including a majority of the Qualified
Directors and became effective with respect to the Class D shares on February 1,
1994. The Plan will continue in effect until December 31 of each year so long as
such continuance is approved annually by a majority vote of both the Directors
and the Qualified Directors of the Fund, cast in person at a meeting called for
the purpose of voting on such approval. The Plan may not be amended to increase
materially the amounts payable under the terms of the Plan without the approval
of a majority of the outstanding voting securities of the Funds and no material
amendment to the Plan may be made except with the approval of a majority of both
the Directors and the Qualified Directors in accordance with the applicable
provisions of the 1940 Act and the rules thereunder.
The Plan requires that the Treasurer of the Fund shall provide to the
Directors, and the Directors shall review at least quarterly, a written report
of the amounts expended (and purposes therefor) made under the Plan. Rule 12b-1
also requires that the selection and nomination of Directors who are not
"interested persons" of the Fund be made by such disinterested Directors.
PORTFOLIO TRANSACTIONS
No brokerage commissions were paid by the Fund during the fiscal years
ended September 30, 1994, 1995 or 1996. When two or more Series of the Fund or
two or more of the investment companies in the Seligman Group or other
investment advisory clients of the Manager desire to buy or sell the same
security at the same time, the securities purchased or sold are allocated by the
Manager in a manner believed to be equitable to each. There may be possible
advantages or disadvantages of such transactions with respect to price or the
size of positions readily obtainable or saleable.
PURCHASE AND REDEMPTION OF FUND SHARES
Each Series of the Fund issues two classes of shares: Class A shares may be
purchased at a price equal to the next determined net asset value per share,
plus a sales load. Class A shares purchased at net asset value without an
initial sales load due to the size of the purchase are subject to a CDSL of 1%
if such shares redeemed within eighteen months of purchase. Class D shares may
be purchased at a price equal to the next determined net asset value without an
initial sales load, but a CDSL may be charged on certain redemptions within one
year of purchase. See "Alternative Distribution System," "Purchase Of Shares,"
and "Redemption Of Shares" in the Fund's Prospectus.
Specimen Price Make-Up
Under the current distribution arrangements between the Fund and the
Distributor, Class A shares are sold at a maximum sales load of 4.75% and Class
D shares are sold at net asset value.* Using each Series' net asset value at
September 30, 1996, the maximum offering price of each Series' shares is as
follows:
<TABLE>
<CAPTION>
CLASS A SHARES
Net Asset Maximum Sales Load Maximum Offering
Name of Series Value Per Share (4.75% of Offering Price) Price Per Share
- --------------- ------------------- ------------------------- ---------------
<S> <C> <C> <C>
National $ 7.70 $ .38 $ 8.08
Colorado 7.27 .36 7.63
Georgia 7.87 .39 8.26
Louisiana 8.16 .41 8.57
Maryland 7.99 .40 8.39
Massachusetts 7.85 .39 8.24
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Net Asset Maximum Sales Load Maximum Offering
Name of Series Value Per Share (4.75% of Offering Price) Price Per Share
- --------------- ------------------- ------------------------- ---------------
<S> <C> <C> <C>
Michigan $8.46 $ .42 $8.88
Minnesota 7.68 .38 8.06
Missouri 7.71 .38 8.09
New York 7.98 .40 8.38
Ohio 8.09 .40 8.49
Oregon 7.65 .38 8.03
South Carolina 8.07 .40 8.47
</TABLE>
CLASS D SHARES
Net Asset Value and Maximum
Name of Series Offering Price Per Share*
- -------------- -------------------------
National $ 7.70
Colorado 7.27
Georgia 7.88
Louisiana 8.16
Maryland 7.99
Massachusetts 7.84
Michigan 8.45
Minnesota 7.68
Missouri 7.72
New York 7.98
Ohio 8.13
Oregon 7.64
South Carolina 8.06
- ---------
* Class D shares are subject to a CDSL of 1% on certain redemptions within one
year of purchase. Class A shares purchased at net asset value due to the size
of the purchase are subject to a CDSL of 1% on redemption within eighteen
months of purchase of such shares. See "Redemption Of Shares" in the
Prospectus.
Class A Shares - Reduced Initial Sales Loads
Reductions Available. Shares of any Seligman Mutual Fund sold with an initial
sales load in a continuous offering will be eligible for the following
reductions:
Volume Discounts are provided if the total amount being invested in Class A
shares of a Series alone, or in any combination of shares of the other mutual
funds in the Seligman Group which are sold with an initial sales load, reaches
levels indicated in the sales load schedule set forth in the Prospectus.
The Right of Accumulation allows an investor to combine the amount being
invested in Class A shares of a Series, Seligman Capital Fund, Seligman Common
Stock Fund, Seligman Communications and Information Fund, Seligman Frontier
Fund, Seligman Growth Fund, Seligman Henderson Global Fund Series, Seligman High
Income Fund Series, Seligman Income Fund, Seligman Municipal Series Trust,
Seligman New Jersey Municipal Fund or Seligman Pennsylvania Municipal Fund
Series that were sold with an initial sales load with the total net asset value
of shares of those Seligman Mutual Funds already owned that were sold with an
initial sales load and the total net asset value of shares of Seligman Cash
Management Fund which were acquired through an exchange of shares of another
mutual fund in the Seligman Group on which there was an initial sales load at
the time of purchase to determine reduced sales loads in accordance with the
schedule in the Prospectuses. The value of the shares owned, including the value
of shares of Seligman Cash Management Fund acquired in an exchange of shares of
another mutual fund in the Seligman Group on which there is an initial sales
load at the time of purchase will be taken into account in orders placed through
a dealer, however, only if Seligman Financial Services, Inc. ("SFSI") is
notified by an investor or dealer of the amount owned at the time the purchase
is made and is furnished sufficient information to permit confirmation.
13
<PAGE>
A Letter of Intent allows an investor to purchase Class A shares of a
Series over a 13-month period at reduced initial sales loads in accordance with
the schedule in the Prospectus, based on the total amount of Class A shares that
the letter states the investor intends to purchase plus the total net asset
value of shares that were sold with an initial sales load of the Seligman
Capital Fund, Seligman Common Stock Fund, Seligman Communications and
Information Fund, Seligman Frontier Fund, Seligman Growth Fund, Seligman
Henderson Global Fund Series, Seligman High Income Fund Series, Seligman Income
Fund, Seligman Municipal Series Trust, Seligman New Jersey Municipal Fund and
Seligman Pennsylvania Municipal Fund Series already owned and the total net
asset value of shares of Seligman Cash Management Fund which were acquired
through an exchange of shares of another mutual fund in the Seligman Group on
which there was an initial sales load at the time of purchase. Reduced initial
sales loads also may apply to purchases made within a 13-month period starting
up to 90 days before the date of execution of a letter of intent. For more
information concerning the terms of the letter of intent, see "Terms and
Conditions - Letter of Intent - Class A" in the Fund's Prospectus.
Class A shares purchased without an initial sales load in accordance with
the sales load schedule in the Prospectus, or pursuant to a Volume Discount,
Right of Accumulation or Letter of Intent are subject to a CDSL of 1% on
redemptions of such shares within eighteen months of purchase.
Persons Entitled to Reductions. Reductions in initial sales loads apply to
purchases of Class A shares of each Series by a "single person," including an
individual; members of a family unit comprising husband, wife and minor
children; or a trustee or other fiduciary purchasing for a single fiduciary
account. Employee benefit plans qualified under Section 401 of the Internal
Revenue Code of 1986, as amended (the "Code"), tax-exempt organizations under
section 501(c)(3) or (13) of the Code, and non-qualified employee benefit plans
that satisfy uniform criteria are considered "single persons" for this purpose.
The uniform criteria are as follows:
1. Employees must authorize the employer, if requested by the Fund, to receive
in bulk and to distribute to each participant on a timely basis the Fund
prospectuses, reports and other shareholder communications.
2. Employees participating in a plan will be expected to make regular periodic
investments (at least annually). A participant who fails to make such
investments may be dropped from the plan by the employer or the Fund 12
months and 30 days after the last regular investment in his account. In such
event, the dropped participant would lose the discount on share purchases to
which the plan might then be entitled.
3. The employer must solicit its employees for participation in such an
employee benefit plan or authorize and assist an investment dealer in making
enrollment solicitations.
Eligible Employee Benefit Plans. The table of sales loads in the Prospectus
applies to sales to "eligible employee benefit plans" (as defined in the
Prospectus), except that the Fund may sell shares at net asset value to
"eligible employee benefit plans," which have at least (i) $500,000 invested in
the Seligman Group of Mutual Funds or (ii) 50 eligible employees to whom such
plan is made available. Such sales must be made in connection with a payroll
deduction system of plan funding or other systems acceptable to Seligman Data
Corp., the Fund's shareholder service agent. Such sales are believed to require
limited sales effort and sales related expenses and therefore are made at net
asset value. Contributions or account information for plan participation also
should be transmitted to Seligman Data Corp. by methods which it accepts.
Additional information about "eligible employee benefit plans" is available from
investment dealers or SFSI.
Further Types of Reductions. Class A shares of each Series may be issued without
a sales load in connection with the acquisition of cash and securities owned by
other investment companies, and personal holding companies, to financial
institution trust departments, to registered investment advisers exercising
investment discretionary authority with respect to the purchase of Series
shares, or pursuant to sponsored arrangements with organizations which make
recommendations to, or permit group solicitation of, its employees, members or
participants in connection with the purchase of shares of the Fund, to separate
accounts established and maintained by an insurance company which are exempt
from registration under Section 3(c)(11) of the 1940 Act, to registered
representatives and employees (and their spouses and minor children) of any
dealer that has a sales agreement with SFSI, to shareholders of mutual funds
with investment objectives similar to the Series' who purchase shares with
redemption proceeds of such funds and to certain unit investment trusts as
described in the Fund's Prospectus.
Class A shares of the Series may be sold at net asset value to present and
retired directors, officers, employees (and family members, as defined in the
Prospectus) of the Fund, the other investment companies in the Seligman Group,
the Manager and other companies affiliated with the Manager. Such sales also may
be made to employee benefit plans for such persons and to any investment
advisory, custodial, trust or other fiduciary account managed or advised by the
Manager or any affiliate. These sales may be made for investment purposes only,
and shares may be resold only to the Series.
14
<PAGE>
Class A shares of each Series may be sold at net asset value to these
persons since such sales require less sales effort and lower sales related
expenses as compared with sales to the general public.
Payment in Securities. In addition to cash, the Fund may accept readily
marketable securities in payment for Series shares sold at the applicable public
offering price. Generally, the Fund will only consider accepting these
securities (1) to increase its holdings in a portfolio security of a Series, or
(2) if the Manager determines that the offered securities are a suitable
investment in a sufficient amount for efficient management. Although no minimum
has been established, it is expected that the Fund would not accept securities
with a value of less than $100,000 per issue in payment for shares. The Fund may
reject in whole or in part offers to pay for shares with securities, may require
partial payment in cash for applicable sales loads, and may discontinue
accepting securities as payment for shares at any time without notice.
More About Redemptions. The procedures for redemption of Fund shares under
ordinary circumstances are set forth in the Prospectus. In unusual
circumstances, payment may be postponed, or the right of redemption postponed
for more than seven days, if the orderly liquidation of portfolio securities is
prevented by the closing of, or restricted trading on, the New York Stock
Exchange during periods of emergency or such other periods as ordered by the
Securities and Exchange Commission. Payment may be made in readily marketable
securities, subject to the review of some state securities commissions. If
payment is made in securities, a shareholder may incur brokerage expenses in
converting these securities to cash.
DISTRIBUTION SERVICES
SFSI, an affiliate of the Manager, acts as general distributor of the
shares of the Fund and of the other mutual funds in the Seligman Group. As
general distributor of the Fund's Common Stock, SFSI allows commissions to all
dealers, of up to 4.25% on purchases of Class A shares to which the 4.75% sales
load applies. SFSI receives the balance of sales loads and any CDSL, if
applicable, paid by investors. The Fund and SFSI are parties to a Distributing
Agreement, dated January 1, 1993.
The following tables set forth the concessions received by SFSI, dealer
commissions and total commissions paid by each Series on sales of Class A shares
of the Fund for the fiscal years ended September 30, 1996, 1995 and 1994. Also
included in the table are the amounts of CDSL retained by SFSI for the fiscal
years ended September 30, 1996 and 1995 and for the period February 1, 1994
through September 30, 1994.
<TABLE>
<CAPTION>
Fiscal 1996
-----------
Series SFSI Concessions Dealer Commissions Total Commissions CDSL Retained
------ ---------------- ------------------ ----------------- -------------
<S> <C> <C> <C> <C>
National $15,618 $ 120,046 $ 135,664 $ 1,933
Colorado 6,810 50,693 57,503 ---
Georgia 10,864 82,566 93,430 280
Louisiana 11,649 85,328 96,977 131
Maryland 10,368 73,461 83,829 370
Massachusetts 13,360 93,885 107,245 641
Michigan 21,956 161,994 183,950 1,551
Minnesota 22,738 168,882 191,620 258
Missouri 7,979 61,487 69,466 1,486
New York 11,497 86,499 97,996 1,810
Ohio 20,073 150,807 170,880 ---
Oregon 13,323 100,702 114,025 192
South Carolina 32,649 237,864 270,513 3,624
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
Fiscal 1995
-----------
Series SFSI Concessions Dealer Commissions Total Commissions CDSL Retained
------ ---------------- ------------------ ----------------- -------------
<S> <C> <C> <C> <C>
National $ 11,153 $ 79,889 $ 91,042 $ 101
Colorado 5,942 44,871 50,813 --
Georgia 12,480 93,530 106,010 378
Louisiana 7,730 54,577 62,307 409
Maryland 8,750 66,429 75,179 --
Massachusetts 12,600 94,205 106,805 323
Michigan 30,006 227,211 257,217 796
Minnesota 18,444 140,533 158,977 700
Missouri 6,965 53,304 60,269 428
New York 14,942 112,407 127,349 940
Ohio 23,679 178,085 201,764 100
Oregon 16,678 123,858 140,536 841
South Carolina 30,670 237,827 268,497 356
<CAPTION>
Fiscal 1994
-----------
Series SFSI Concessions Dealer Commissions Total Commissions CDSL Retained
------ ---------------- ------------------ ----------------- -------------
<S> <C> <C> <C> <C>
National $ 19,575 $ 143,977 $ 163,552 $ --
Colorado 9,703 71,208 80,911 1,960
Georgia 50,838 376,174 427,012 49
Louisiana 16,250 123,857 140,107 84
Maryland 13,558 104,817 118,375 70
Massachusetts 17,927 136,115 154,042 40
Michigan 47,057 353,939 400,996 148
Minnesota 25,673 197,561 223,234 508
Missouri 15,167 114,971 130,138 1,363
New York 11,191 85,746 96,937 --
Ohio 41,962 312,461 354,423 --
Oregon 35,873 273,141 309,014 289
South Carolina 68,528 518,381 586,909 202
</TABLE>
Effective April 1, 1995, Seligman Services, Inc. ("SSI"), an affiliate of
the Manager became eligible to receive commissions from certain sales of Fund
shares, as well as distribution and service fees pursuant to the Plan. For the
period ended September 30, 1995 and for the year ended September 30, 1996, SSI
received commissions and distribution and service fees in the following amounts:
<TABLE>
<CAPTION>
Fiscal 1996 Fiscal 1995
----------- -----------
Distribution and Distribution and
Series Commissions Service Fees Commissions Service Fees
- ------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
National 1,736 6,257 $ 531 $ 2,983
Colorado 4,437 2,997 3,110 1,444
Georgia 525 667 1,598 221
Louisiana --- 647 0 366
Maryland 1,251 1,399 1,327 772
Massachusetts 689 2,555 417 1,059
Michigan 1,315 2,656 245 914
Minnesota 1,717 2,122 11 925
Missouri 1,754 3,149 444 1,371
New York 2,144 8,922 1,211 2,976
Ohio 2,276 2,929 1,245 1,392
Oregon 763 797 750 394
South Carolina 2,229 1,484 1,247 749
</TABLE>
16
<PAGE>
TAXES
Under the Tax Reform Act of 1986, as amended, each Series of the Fund will
be treated as a separate corporation for federal income tax purposes. As a
result, determinations of net investment income, exempt-interest dividends and
net long-term and short-term capital gain and loss will be made separately for
each Series.
Each Series intends to qualify and elect to be treated as a regulated
investment company under the Internal Revenue Code and thus to be relieved of
federal income tax on amounts distributed to shareholders; provided that it
distributes at least 90 percent of its net investment income and net short-term
capital gains, if any.
Qualification as a regulated investment company under the Internal Revenue
Code requires among other things, that (a) at least 90% of the annual gross
income of the Series be derived from dividends, interest, payments with respect
to securities loans and gains from the sale or other disposition of stocks,
securities or currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of investing in such stocks, securities or currencies; (b) the Series
derive less than 30% of its gross annual income from gains from the sale or
other disposition of stock, securities and certain other assets held for less
than three months; and (c) the Series diversify its holdings so that, at the end
of each quarter of the taxable year, (i) at least 50% of the market value of the
Series' assets is represented by cash, United States Government securities and
other securities limited in respect of any one issuer to an amount not greater
than 5% of the Series' assets and 10% of the outstanding voting securities of
such issuer, and (ii) not more than 25% of the value of its assets is invested
in the securities of any one issuer (other than U.S. Government securities).
VALUATION
The net asset value per share of each class of a Series of the Fund is
determined as of the close of the New York Stock Exchange ("NYSE") (normally,
4:00 p.m. Eastern time), on each day that the NYSE is open. The Fund and the
NYSE are currently closed on New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
The Fund will also determine net asset value for each class of a Series on each
day in which there is a sufficient degree of trading in a Series' portfolio
securities that the net asset value of Series shares might be materially
affected. Net asset value per share for a class of a Series is computed by
dividing that class' share of the value of the net assets of such Series (i.e.,
the value of its assets less liabilities) by the total number of outstanding
shares of such class. All expenses of a Series, including the Manager's fee, are
accrued daily and taken into account for the purpose of determining net asset
value. The net asset value of Class D shares of a Series will generally be lower
than the net asset value of Class A shares of such Series as a result of the
higher distribution fee with respect to Class D shares. It is expected, however,
that the net asset value per share of the two classes will tend to converge
immediately after the recording of dividends, which will differ by approximately
the amount of the distribution and other class expenses accrual differential
between the classes.
The securities in which the Fund invests are traded primarily in the
over-the-counter market. Municipal securities and other short-term holdings
maturing in more than 60 days are valued on the basis of quotations provided by
an independent pricing service, approved by the Directors, which uses
information with respect to transactions in bonds, quotations from bond dealers,
market transactions in comparable securities and various relationships between
securities in determining value. In the absence of such quotations, fair value
will be determined in accordance with procedures approved by the Directors.
Short-term holdings having remaining maturities of 60 days or less are generally
valued at amortized cost.
Generally, trading in certain securities such as municipal securities,
corporate bonds, U.S. government securities, and money market instruments is
substantially completed each day at various times prior to the close of the
NYSE. The values of such securities used in determining the net asset value of
the Series shares are computed as of such times. Events affecting the value of
such securities may occur between such times and the close of the NYSE which
will not be reflected in the computation of a Series' net asset value. If events
materially affecting the value of such securities occur during such period, then
these securities and other assets will be valued at their fair market value as
determined in good faith by the Directors.
17
<PAGE>
PERFORMANCE INFORMATION
The annualized yield for the 30-day period ended September 30, 1996 for
each Series' Class A shares was as follows: National-4.92%, Colorado-4.39%,
Georgia-4.75%, Louisiana-4.63%, Maryland-4.59%, Massachusetts-4.83%,
Michigan-4.77%, Minnesota-4.26%, Missouri-4.35%, New York-4.88%, Ohio-4.65%,
Oregon-4.45%, and South Carolina-4.60%. The annualized yield was computed by
dividing a Series' net investment income per share earned during this 30-day
period by the maximum offering price per share (i.e., the net asset value plus
the maximum sales load of 4.75% of the net amount invested) on September 30,
1996, which was the last day of this period. The average number of Class A
shares were: National-12,846,653, Colorado-7,188,075, Georgia-6,511,264,
Louisiana-7,116,918, Maryland-6,786,968, Massachusetts-14,159,923,
Michigan-17,534,272, Minnesota-16,487,875, Missouri-6,482,709, New
York-10,398,423, Ohio-20,105,136, Oregon-7,517,787 and South Carolina-13,445,104
which was the average daily number of shares outstanding during the 30-day
period that were eligible to receive dividends. Income was computed by totaling
the interest earned on all debt obligations during the 30-day period and
subtracting from that amount the total of all recurring expenses incurred during
the period. The 30-day yield was then annualized on a bond-equivalent basis
assuming semi-annual reinvestment and compounding of net investment income, as
described in the Prospectus.
The tax equivalent annualized yield for the 30-day period ended September
30, 1996 for each Series' Class A shares was as follows: National-8.15%,
Colorado-7.65%, Georgia-8.37%, Louisiana-8.15%, Maryland-8.00%,
Massachusetts-9.09%, Michigan-8.26%, Minnesota-8.97%, Missouri-7.66%, New
York-8.69%, Ohio-8.27%, Oregon-8.09% and South Carolina-8.19%. The tax
equivalent annualized yield was computed by first computing the annualized yield
as discussed above. Then the portion of the yield attributable to securities the
income of which was exempt for federal and state income tax purposes was
determined. This portion of the yield was then divided by one minus the
following percentages: National-39.60%, Colorado-42.62%, Georgia-43.22%,
Louisiana-43.22%, Maryland-42.62%, Massachusetts-46.85%, Michigan-42.26%,
Minnesota-44.73%, Missouri-43.22%, New York-43.83%, Ohio-43.83%, Oregon-45.04%
and South Carolina-43.83% which percentages assume the maximum combined federal
and state income tax rate for individual taxpayers that are subject to such
state's personal income taxes. Then the small portion of the yield (for all the
Series except the National Series) attributable to securities the income of
which was exempt only for federal income tax purposes was determined. This
portion of the yield was then divided by one minus 39.6% (39.6% being the
maximum federal income tax rate). These two calculations were then added to the
portion of the Class A shares yield, if any, that was not attributable to
securities, the income of which was not tax exempt.
The average annual total return for the one-year period ended September 30,
1996 for each Series' Class A shares was as follows: National-1.86%,
Colorado-(0.17)%, Georgia-1.50%, Louisiana-1.22%, Maryland-0.93%,
Massachusetts-0.99%, Michigan-1.07%, Minnesota-(0.95)%, Missouri-1.27%, New
York-1.91%, Ohio-0.71%, Oregon-0.30% and South Carolina-1.72%; for the five-year
period ended on September 30, 1996 for each of the Series' Class A shares was:
National-5.75%, Colorado-4.98%, Georgia-6.00%, Louisiana-5.61%, Maryland-5.82%,
Massachusetts-5.93%, Michigan-6.08%, Minnesota-5.38%, Missouri-5.42%, New
York-6.23%, Ohio-5.76%, Oregon-5.35%, and South Carolina-5.89%; for the ten-year
period ended on September 30, 1996 for certain of the Series' Class A shares
was: National-6.86%, Colorado-6.21%, Louisiana-7.03%, Maryland-6.75%,
Massachusetts-6.80%, Michigan-7.02%, Minnesota-6.41%, Missouri, 6.66%, New
York-6.96%, and Ohio-7.03%; and since inception through the period ended on
September 30, 1996 for certain of the Series' Class A shares was: Georgia-7.18%,
Oregon-6.34% and South Carolina-7.20%. These returns were computed by assuming a
hypothetical initial payment of $1,000 in Class A shares of each Series. From
this $1,000, the maximum sales load of $47.50 (4.75% of public offering price)
was deducted. It was then assumed that all of the dividends and distributions by
the Series' Class A shares over the relevant time period were reinvested. It was
then assumed that at the end of the one-year period, the five-year period and
the ten-year period or since inception period of the Series, the entire amount
was redeemed. The average annual total return was then calculated by calculating
the annual rate required for the initial payment to grow to the amount which
would have been received upon redemption (i.e., the average annual compound rate
of return).
The annualized yield for the 30-day period ended September 30, 1996 for
each Series' Class D shares was as follows: National-4.24%, Colorado-3.69%,
Georgia-4.09%, Louisiana-3.97%, Maryland-3.91%, Massachusetts-4.17%,
Michigan-4.11%, Minnesota-3.57%, Missouri-3.68%, New York-4.22%, Ohio-3.98%,
Oregon-3.78% and South Carolina-3.94%. The annualized yield was computed as for
Class A shares by dividing a Series' net investment income per share earned
during this 30-day period by the maximum offering price per share (i.e., the net
asset value) on September 30, 1996 which was the last day of this period. The
average number of Class D shares were: National-434,131, Colorado-35,106,
Georgia-299,809, Louisiana-47,632, Maryland-255,630, Massachusetts-178,932,
Michigan-178,847, Minnesota-265,909, Missouri-71,762, New York-144,151,
Ohio-123,915, Oregon-199,723 and South Carolina-333,612 which was the average
daily number of shares outstanding during the 30-day period that were eligible
to receive dividends.
18
<PAGE>
The tax equivalent annualized yield for the 30-day period ended September
30, 1996 for each Series' Class D shares was as follows: National- 7.02%,
Colorado-6.43%, Georgia-7.20%, Louisiana-6.99%, Maryland-6.81%,
Massachusetts-7.84%, Michigan-7.12%, Minnesota-6.45%, Missouri-6.48%, New
York-7.51%, Ohio-7.08%, Oregon-6.88% and South Carolina-7.01%. The tax
equivalent annualized yield was computed as discussed above for Class A shares.
The average annual total return for the one-year period ended, September
30, 1996 for each Series' Class D shares was as follows: National-5.13%,
Colorado-2.96%, Georgia-4.60%, Louisiana-4.37%, Maryland-3.91%,
Massachusetts-4.02%, Michigan-4.10%, Minnesota-2.08%, Missouri-4.46%, New
York-4.86%, Ohio-3.74%, Oregon-3.33%, and South Carolina-4.73%; and since
inception through the period ended September 30, 1996 for each of the Series'
Class D shares was: National-1.95%, Colorado-1.89%, Georgia-2.91%,
Louisiana-2.79%, Maryland-2.92%, Massachusetts-2.82%, Michigan-2.81%,
Minnesota-2.33%, Missouri-2.64%, New York-2.69%, Ohio-2.83%, Oregon-2.64%, and
South Carolina-2.80%. These returns were computed by assuming a hypothetical
initial payment of $1,000 in Class D shares of each Series and that all of the
dividends and distributions by the Series' Class D shares over the relevant time
period were reinvested. It was then assumed that at the end of the one-year
period and since inception of the Series, the entire amount was redeemed,
subtracting the 1% CDSL, if applicable.
The tables below illustrate the total returns on a $1,000 investment in
each of the Series Class A and Class D shares for the ten years ended September
30, 1996 or from the commencement of a Series' operation through September 30,
1996 assuming investment of all dividends and capital gain distributions.
<TABLE>
<CAPTION>
CLASS A SHARES
Value of Capital Value Total Value
Period/Year Initial Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ ----------
<S> <C> <C> <C> <C> <C>
NATIONAL
9/30/87 $ 832 $ 33 $ 65 $ 930
9/30/88 858 81 144 1,083
9/30/89 869 84 223 1,176
9/30/90 836 96 293 1,225
9/30/91 888 114 397 1,399
9/30/92 907 122 494 1,523
9/30/93 980 158 628 1,766
9/30/94 807 221 600 1,628
9/30/95 852 233 730 1,815
9/30/96 865 237 840 1,942 94.16%
COLORADO
9/30/87 860 3 60 923
9/30/88 926 10 136 1,072
9/30/89 951 10 215 1,176
9/30/90 931 10 286 1,227
9/30/91 973 11 380 1,364
9/30/92 989 11 470 1,470
9/30/93 1,046 27 581 1,654
9/30/94 956 41 609 1,606
9/30/95 984 42 717 1,743
9/30/96 980 42 804 1,826 82.60%
GEORGIA
9/30/87 865 - 15 880
9/30/88 945 - 88 1,033
9/30/89 973 2 163 1,138
9/30/90 957 4 236 1,197
9/30/91 1,017 5 335 1,357
9/30/92 1,047 11 429 1,487
9/30/93 1,124 20 551 1,695
9/30/94 997 34 570 1,601
9/30/95 1,041 61 686 1,788
9/30/96 1,049 74 783 1,906 90.55%
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
Value of Capital Value Total Value
Period/Year Initial Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
LOUISIANA
9/30/87 $ 884 $ 9 $ 64 $ 958
9/30/88 935 18 146 1,099
9/30/89 946 26 226 1,198
9/30/90 924 35 301 1,260
9/30/91 982 41 407 1,430
9/30/92 1,006 49 506 1,561
9/30/93 1,055 71 624 1,750
9/30/94 953 80 649 1,682
9/30/95 977 115 764 1,856
9/30/96 980 129 864 1,973 97.30%
MARYLAND
9/30/87 862 0 58 920
9/30/88 927 7 131 1,065
9/30/89 952 7 206 1,165
9/30/90 935 7 275 1,217
9/30/91 996 7 375 1,378
9/30/92 1,023 13 469 1,505
9/30/93 1,084 34 586 1,704
9/30/94 967 63 604 1,634
9/30/95 999 96 717 1,812
9/30/96 1,003 104 814 1,921 92.09%
MASSACHUSETTS
9/30/87 850 19 63 932
9/30/88 900 34 139 1,073
9/30/89 903 41 217 1,161
9/30/90 857 51 282 1,190
9/30/91 928 58 393 1,379
9/30/92 952 67 494 1,513
9/30/93 1,008 86 618 1,712
9/30/94 904 116 642 1,662
9/30/95 934 127 760 1,821
9/30/96 927 151 852 1,930 93.00%
MICHIGAN
9/30/87 834 29 62 925
9/30/88 885 48 140 1,073
9/30/89 907 53 219 1,179
9/30/90 880 64 289 1,233
9/30/91 934 71 392 1,397
9/30/92 968 82 494 1,544
9/30/93 1,012 123 610 1,745
9/30/94 923 128 643 1,694
9/30/95 952 142 762 1,856
9/30/96 943 171 856 1,970 97.04%
MINNESOTA
9/30/87 849 23 62 934
9/30/88 897 37 138 1,072
9/30/89 906 42 213 1,161
9/30/90 893 49 286 1,228
9/30/91 931 52 382 1,365
9/30/92 940 55 475 1,470
9/30/93 987 82 593 1,662
9/30/94 920 99 645 1,664
9/30/95 932 103 755 1,790
9/30/96 915 106 841 1,862 86.16%
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
Value of Capital Value Total Value
Period/Year Initial Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
MISSOURI
9/30/87 $ 854 $ 0 $ 58 $ 912
9/30/88 923 8 134 1,065
9/30/89 947 8 209 1,164
9/30/90 939 8 280 1,227
9/30/91 1,004 8 383 1,395
9/30/92 1,014 20 470 1,504
9/30/93 1,081 33 589 1,703
9/30/94 964 50 606 1,620
9/30/95 1,001 70 722 1,793
9/30/96 1,003 87 815 1,905 90.52%
NEW YORK
9/30/87 842 26 62 930
9/30/88 875 54 137 1,066
9/30/89 891 59 216 1,166
9/30/90 855 64 284 1,203
9/30/91 918 68 393 1,379
9/30/92 940 82 492 1,514
9/30/93 1,012 113 620 1,745
9/30/94 887 136 628 1,651
9/30/95 909 181 741 1,831
9/30/96 923 184 852 1,959 95.90%
OHIO
9/30/87 869 13 65 947
9/30/88 908 43 145 1,096
9/30/89 919 46 225 1,190
9/30/90 898 60 300 1,258
9/30/91 949 65 407 1,421
9/30/92 975 75 508 1,558
9/30/93 1,033 93 632 1,758
9/30/94 931 116 657 1,704
9/30/95 955 137 775 1,867
9/30/96 953 145 875 1,973 97.30%
OREGON
9/30/87 828 - 51 879
9/30/88 911 - 125 1,036
9/30/89 940 - 199 1,139
9/30/90 928 - 268 1,196
9/30/91 989 - 366 1,355
9/30/92 1,013 - 455 1,468
9/30/93 1,077 - 570 1,647
9/30/94 991 12 605 1,608
9/30/95 1,021 17 715 1,753
9/30/96 1,020 19 807 1,846 84.56%
SOUTH CAROLINA
9/30/87 889 - 12 901
9/30/88 961 - 86 1,047
9/30/89 984 1 160 1,145
9/30/90 964 1 231 1,196
9/30/91 1,028 8 327 1,363
9/30/92 1,067 11 423 1,501
9/30/93 1,136 16 537 1,689
9/30/94 1,015 36 560 1,611
9/30/95 1,063 42 678 1,783
9/30/96 1,076 46 782 1,904 90.44%
</TABLE>
21
<PAGE>
CLASS D SHARES
<TABLE>
<CAPTION>
Value of Capital Value Total Value
Period/Year Initial Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
NATIONAL
9/30/94 $ 876 $ - $ 24 $ 900
9/30/95 923 - 69 992
9/30/96 939 - 114 1,053 5.27%
COLORADO
9/30/94 918 - 25 943
9/30/95 944 - 67 1,011
9/30/96 942 - 109 1,051 5.12%
GEORGIA
9/30/94 899 - 25 924
9/30/95 939 15 68 1,022
9/30/96 946 22 111 1,079 7.94%
LOUISIANA
9/30/94 910 - 25 935
9/30/95 932 18 71 1,021
9/30/96 935 26 115 1,076 7.61%
MARYLAND
9/30/94 913 - 25 938
9/30/95 942 18 69 1,029
9/30/96 944 23 113 1,080 7.98%
MASSACHUSETTS
9/30/94 920 - 27 947
9/30/95 948 4 73 1,025
9/30/96 941 18 118 1,077 7.68%
MICHIGAN
9/30/94 919 - 26 945
9/30/95 948 5 71 1,024
9/30/96 938 22 116 1,076 7.65%
MINNESOTA
9/30/94 940 - 29 969
9/30/95 951 2 79 1,032
9/30/96 934 4 125 1,063 6.33%
MISSOURI
9/30/94 904 - 24 928
9/30/95 939 10 68 1,017
9/30/96 941 20 111 1,072 7.20%
NEW YORK
9/30/94 897 - 26 923
9/30/95 920 23 71 1,014
9/30/96 933 24 116 1,073 7.33%
OHIO
9/30/94 920 - 26 946
9/30/95 947 10 71 1,028
9/30/96 944 15 118 1,077 7.71%
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
Value of Capital Value Total Value
Period/Year Initial Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
OREGON
9/30/94 $926 $ - $ 26 $ 952
9/30/95 954 3 70 1,027
9/30/96 953 4 115 1,072 7.18%
SOUTH CAROLINA
9/30/94 904 - 25 929
9/30/95 947 2 69 1,018
9/30/96 957 4 115 1,076 7.64%
</TABLE>
1 For Class A shares: for certain series, from commencement of operations on:
Georgia 6/15/87
Oregon 10/15/86
South Carolina 6/30/87
For Class D shares: from commencement of operations on February 1, 1994.
2 The "Value of Initial Investment" as of the date indicated reflects the
effect to the maximum sales load, assumes that all dividends and capital
gain distributions were taken in cash and reflects changes in the net asset
value of the shares purchased with the hypothetical initial investment.
"Total Value of Investment" assumes investment of all dividends and capital
gain distributions.
3 Total return for each Series is calculated by assuming a hypothetical
initial investment of $1,000 at the beginning of the period specified,
subtracting the maximum sales load or CDSL, if applicable; determining total
value of all dividends and distributions that would have been paid during
the period on such shares assuming that each dividend or distribution was
invested in additional shares at net asset value; calculating the total
value of the investment at the end of the period; and finally, by dividing
the difference between the amount of the hypothetical initial investment at
the beginning of the period and its value at the end of the period by the
amount of the hypothetical initial investment.
The waiver by the Manager of its fees and reimbursement of certain expenses
during certain of the periods (as set forth under "Management and Expenses"
herein and "Management Services" in the Prospectus) for which the performance
results have been provided in this section positively affected such results.
A Series' total return and average annual total return for Class A shares
quoted herein does not reflect the deduction of the administration, shareholder
services and distribution fee, for periods prior to January 1, 1993, which fee
if reflected would reduce the performance quoted.
GENERAL INFORMATION
The Fund is a Maryland corporation, authorized to issue 1,300,000,000
shares of common stock. The Directors have authority to create and classify
shares of common stock in separate Series, without further action by
shareholders. To date, shares of thirteen Series have been authorized, which
shares constitute the interests in the Series described herein and further
series may be added in the future. The 1940 Act requires that where more than
one class or Series of shares exists, each class or Series must be preferred
over all other classes or Series in respect of assets specifically allocated to
such class or Series.
Rule 18f-2 under the 1940 Act provides that any matter required to be
submitted by the provisions of the 1940 Act or applicable state law, or
otherwise, to be submitted to the holders of the outstanding voting securities
of an investment company such as the Fund shall not be deemed to have been
effectively acted upon unless approved by the holders of a majority of the
outstanding shares of each class or Series affected by such matter. Rule 18f-2
further provides that a class or Series shall be deemed to be affected by a
matter unless it is clear that the interests of each class or Series in the
matter are substantially identical or that the matter does not affect any
interest of such class or Series. However, the Rule exempts the selection of
independent public accountants, the approval of principal distributing contracts
and the election of directors from the separate voting requirements of the Rule.
23
<PAGE>
Custodian. Investors Fiduciary Trust Company, 127 West 10th Street, Kansas
City, Missouri 64105, serves as custodian for the Fund. It also maintains, under
the general supervision of the Manager, the accounting records and determines
the net asset value for the Fund.
Auditors. Deloitte & Touche LLP, independent auditors, have been selected
as auditors of the Fund. Their address is Two World Financial Center, New York,
NY 10281.
FINANCIAL STATEMENTS
The Annual Report to Shareholders for the fiscal year ended September 30,
1996 is incorporated by reference into this Statement of Additional Information.
The Annual Report contains a schedule of the investments of each of the Fund's
Series as of September 30, 1996, as well as certain other financial information
as of that date. The Annual Report will be furnished, without charge, to
investors who request copies of the Fund's Statement of Additional Information.
24
<PAGE>
APPENDIX A
Moody's Investors Service, Inc. ("Moody's")
Municipal Bonds
Aaa: Municipal bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk. Interest payments
are protected by a large or by an exceptionally stable margin and principal is
secure. While the various protective elements are likely to change, such changes
as can be visualized are most unlikely to impair the fundamentally strong
position of such issues.
Aa: Municipal bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than Aaa bonds because margins
of protection may not be as large or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the
long-term risks appear somewhat larger than in Aaa securities.
A: Municipal bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment sometime in the
future.
Baa: Municipal bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present but
certain protective elements may be characteristically lacking or may be
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact may have speculative characteristics as well.
Ba: Municipal bonds which are rated Ba are judged to have speculative
elements; their future cannot be considered as well-assured. Often the
protection of interest and principal payments may be very moderate, and thereby
not well safeguarded during other good and bad times over the future.
Uncertainty of position characterizes bonds in this class.
B: Municipal bonds which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may be
small.
Caa: Municipal bonds which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with respect to
principal or interest.
Ca: Municipal bonds which are rated Ca represent obligations which are
speculative in high degree. Such issues are often in default or have other
marked shortcomings.
C: Municipal bonds which are rated C are the lowest rated class of bonds,
and issues so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers (1, 2 and 3) in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; modifier 2 indicates a mid-range ranking; and modifier 3
indicates that the issuer ranks in the lower end of its generic rating category.
Municipal Notes
Moody's ratings for municipal notes and other short-term loans are
designated Moody's Investment Grade (MIG). This distinction is in recognition of
the differences between short-term and long-term credit risk. Loans bearing the
designation MIG 1 are of the best quality, enjoying strong protection by
established cash flows of funds for their servicing or by established and
broad-based access to the market for refinancing. Loans bearing the designation
MIG 2 are of high quality, with margins of protection ample although not so
large as in the preceding group. Loans bearing the designation MIG 3 are of
favorable quality, with all security elements accounted for but lacking the
undeniable strength of the preceding grades. Market access for refinancing in
particular, is likely to be less well established. Notes bearing the designation
MIG 4 are judged to be of adequate quality, carrying specific risk but having
protection commonly regarded as required of an investment security and not
distinctly or predominantly speculative.
25
<PAGE>
Commercial Paper
Moody's Commercial Paper Ratings are opinions of the ability of issuers to
repay punctually promissory senior debt obligations not having an original
maturity in excess of one year. Issuers rated "Prime-1" or "P-1" indicates the
highest quality repayment capacity of the rated issue.
The designation "Prime-2" or "P-2" indicates that the issuer has a strong
capacity for repayment of senior short-term promissory obligations. Earnings
trends and coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected by
external conditions. Ample alternative liquidity is maintained.
The designation "Prime-3" or "P-3" indicates that the issuer has an
acceptable capacity for repayment of short-term promissory obligations. The
effect of industry characteristics and market compositions may be more
pronounced. Variability in earnings and profitability may result in changes in
the level of debt protection measurements and may require relatively high
financial leverage. Adequate alternate liquidity is maintained.
Issues rated "Not Prime" do not fall within any of the Prime rating
categories.
Standard & Poor's Corporation ("S&P")
Municipal Bonds
AAA: Municipal bonds rated AAA are highest grade obligations. Capacity to
pay interest and repay principal is extremely strong.
AA: Municipal bonds rated AA have a very high degree of safety and very
strong capacity to pay interest and repay principal and differ from the highest
rated issues only in small degree.
A: Municipal bonds rated A are regarded as upper medium grade. They have a
strong degree of safety and capacity to pay interest and repay principal
although they are somewhat more susceptible in the long term to the adverse
effects of changes in circumstances and economic conditions than debt in higher
rated categories.
BBB: Municipal bonds rated BBB are regarded as having a satisfactory degree
of safety and capacity to pay interest and re-pay principal. Whereas they
normally exhibit adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened capacity to pay
interest and re-pay principal for bonds in this category than for bonds in
higher rated categories.
BB, B, CCC, CC: Municipal bonds rated BB, B, CCC and CC are regarded, on
balance, as predominantly speculative with respect to capacity to pay interest
and pre-pay principal in accordance with the terms of the bond. BB indicates the
lowest degree of speculation and CC the highest degree of speculation. While
such bonds will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposure to adverse
conditions.
C: The rating C is reserved for income bonds on which no interest is being
paid.
D: Bonds rated D are in default, and payment of interest and/or repayment
of principal is in arrears.
NR: Indicates that no rating has been requested, that there is insufficient
information on which to base a rating or that S&P does not rate a particular
type of bond as a matter of policy.
Municipal Notes
SP-1: Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be given a
plus (+) designation.
SP-2: Satisfactory capacity to pay principal and interest.
26
<PAGE>
Commercial Paper
S&P Commercial Paper ratings are current assessments of the likelihood of
timely payment of debts having an original maturity of no more than 365 days.
A-1: The A-1 designation indicates that the degree of safety regarding
timely payment is very strong.
A-2: Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated "A-1".
A-3: Issues carrying this designation have adequate capacity for timely
payment. They are, however, more vulnerable to the adverse effects of changes in
circumstances than obligations carrying the higher designations.
B: Issues rated "B" are regarded as having only a speculative capacity for
timely payment.
C: This rating is assigned to short-term debt obligations with a doubtful
capacity of payment.
D: Debt rated "D" is in payment default.
NR: Indicates that no rating has been requested, that there is insufficient
information on which to base a rating or that S&P does not rate a particular
type of bond as a matter of policy.
The ratings assigned by S&P may be modified by the addition of a plus (+)
or minus (-) sign to show relative standing within its major rating categories.
27
<PAGE>
APPENDIX B
Special Factors Affecting the Colorado Municipal Series
Because of limitations contained in the state constitution, the State of
Colorado issues no general obligation bonds secured by the full faith and credit
of the state. Several agencies and instrumentalities of state government are
authorized by statute to issue bonds secured by revenues from specific projects
and activities. Additionally, the state is authorized to issue short-term
revenue anticipation notes.
There are approximately 1,800 units of local government in Colorado,
including counties, statutory cities and towns, home-rule cities and counties,
charter cities, school districts and a variety of water, irrigation and other
special improvement districts, all with various constitutional and statutory
authority to levy taxes and incur indebtedness. The major source of revenue for
funding the indebtedness is the ad valorem property tax, which presently is
imposed and collected solely at the local level, although the state is also
authorized to levy the tax, and revenue from special projects. Residential real
property was assessed at 10.36% of its actual value in 1995. All other property
is assessed at 29% of its actual value except producing mines and oil and gas
leaseholds and lands. Oil and gas leaseholds and lands are assessed at 87.5% on
primary recovery and 75% on secondary recovery.
In November 1992, voters in Colorado adopted a state constitutional
amendment known as Amendment 1 and as the Taxpayer's Bill of Rights ("TABOR").
Its provisions generally apply to the state or any local government, excluding
enterprises. An enterprise is a government-owned business authorized to issue
its own revenue bonds and receiving under 10% of annual revenue in grants from
all Colorado state and local governments combined. TABOR requires voter approval
in advance for nearly all new taxes, tax rate increases, mill levies above that
for the prior year, valuation for assessment ratio increases, extensions of
expiring taxes, and tax policy changes directly causing a net tax revenue gain,
as well as creation of any multiple-fiscal year debt or financial obligations
without adequate present cash reserves pledged irrevocably and held for payments
in all future fiscal years. TABOR also imposes spending limits and revenue
limits on state and local governments.
State General Fund and cash non-exempt revenues appear to be below the
TABOR limit for both fiscal years 1996-97 and 1997-98. According to the Colorado
Legislative Council Staff Report (December 1996), in fiscal year 1996-97, the
state TABOR growth rate limit is estimated to be 6.6%; and for 1997-98, the
state TABOR growth rate limit is estimated to be 5.5%. The same report, however,
forecasts that revenues will exceed the TABOR spending limit by fiscal year
2001-02 while the Colorado Office of State Planning and Budgeting Colorado
Economic Perspective (December 20, 1996) forecasts that the state will remain
within the TABOR limit until fiscal year 2003-04.
The final figure for fiscal year 1995 for assessed value of all taxable
real property in the state is $32,470,109,440, of which approximately 46.7% is
residential, and 32.0% is commercial and industrial. Total revenue from property
taxes in 1995 was $2,668,403,530. Figures for fiscal year 1996 are not yet
available.
The factors outlined below are generally indicative of the current economic
status of the State of Colorado. Forecasts are based on predictions of several
economists. There can be no assurance that additional factors or economic
difficulties and their impact on state and local government finances will not
adversely affect the market value of obligations of the Colorado Municipal
Series or the ability of the respective obligors to pay the debt service on such
obligations.
Colorado experienced an approximately 2.3% increase in population in 1995,
down from a 2.6% increase in 1994, with a net positive migration of
approximately 55,320. Preliminary estimates indicate in-migration and population
growth continued at a somewhat lower rate in 1996 - with estimates ranging from
1.7 to 2.1%. Positive migration into Colorado is expected by Colorado economists
to continue through 1997, though at a slower rate, with population growth of
between 1.6 - 1.9% predicted for that year.
Local economists have predicted employment growth of between 2.4% and 3.5%
in 1997. This is somewhat lower than the approximately 2.5 - 4.4% rate for 1996
and considerably lower than the approximately 4.7 - 4.8% rate for 1995. During
1996, job growth occurred in every major non-agricultural employment sector
except oil, gas and mining. The Colorado Office of State Planning and Budgeting
Colorado Economic Perspective (December 20, 1996) predicts for 1997 reductions
in employment in the oil, gas and mining and construction industries and
positive growth in all other sectors.
28
<PAGE>
The increase in personal income in 1996 is estimated by Colorado economists
at between 6.3% and 7.4%. Colorado economists generally expect a lower rate of
increase of between 6.3% and 7.1% for 1997. In 1996, the Denver-Boulder
metropolitan area's inflation rate outpaced nationwide inflation - projected to
be from 3.7 - 4.0% compared to 2.9 - 3.0% for the nation. Colorado economists
forecast the Denver-Boulder metropolitan area's inflation rate for 1997 at
between 3.5% and 3.8%, as compared to an inflation rate forecast of between 3.0%
and 3.2% for the nation. Retail sales increased by approximately 7.5 - 8.3% in
1996, up from the 1995 increase of between 4.2% and 5.1%. Colorado economists
are forecasting an increase in retail sales of between 7.0% and 8.6% in 1997.
Colorado's home-building industry showed strong growth from 1990 through
1994, faltered in 1995, and increased again in 1996. New housing permits and
contracts, however, are expected to decrease by as much as 15% in 1997, led by a
sharp drop in multi-family construction. Some Colorado economists have expressed
concern that Colorado is heading toward over supply in the multi-family market.
Non-residential construction showed a large increase of approximately 23.4-34.2%
in 1996, with estimates for 1997 that are mixed - one forecast calls for a
decrease of 5% while another expects an increase of 1.8% and yet another expects
an increase of 9.2%.
Colorado's economy has experienced a relative boom over the last several
years, due in large part to the impact of several major public works projects
which have been completed and, more recently, a significant amount of private
construction projects consisting principally of retail, office buildings and
hotels. It is expected that growth will continue to slow in Colorado in 1997,
the primary causes of which will be higher labor, housing and office space
costs, a decline in in-migration and an end of the construction boom. Colorado
is sensitive to the national business cycle and Colorado's growth may be far
lower than forecast to the extent it is affected by that cycle.
Special Factors Affecting the Georgia Municipal Series
Since 1973 the long-term debt obligations of the State of Georgia have been
issued in the form of general obligation debt. Prior to 1973 all of the State's
long-term obligations were issued by ten separate State authorities and secured
by lease rental agreements between the authorities and various State departments
and agencies. Currently, Moody's rates Georgia general obligation bonds Aaa; S&P
rates such bonds AA+ and Fitch rates such bonds AAA. There can be no assurance
that the economic and political conditions on which these ratings are based will
continue or that particular obligation issues may not be adversely affected by
changes in economic, political or other conditions that do not affect the above
ratings.
In addition to general obligation debt, the Georgia Constitution permits
the issuance by the State of certain guaranteed revenue debt. The State may
incur guaranteed revenue debt by guaranteeing the payment of certain revenue
obligations issued by an instrumentality of the State. The Georgia Constitution
prohibits the incurring of any general obligation debt or guaranteed revenue
debt if the highest aggregate annual debt service requirement for the then
current year or any subsequent fiscal year for outstanding general obligation
debt and guaranteed revenue debt, including the proposed debt, and the highest
aggregate annual payments for the then current year or any subsequent fiscal
year of the State under all contracts then in force to which the provisions of
the second paragraph of Article IX, Section VI, Paragraph I(a) of the Georgia
Constitution of 1976 (supplanted by the Constitution of 1983) are applicable,
exceed 10% of the total revenue receipts, less refunds, of the State treasury in
the fiscal year immediately preceding the year in which any such debt is to be
incurred. As of August 1996, the State's highest total annual commitment in any
current or subsequent fiscal year equaled 5.34% of fiscal year 1996 estimated
receipts.
The Georgia Constitution also permits the State to incur public debt to
supply a temporary deficit in the state treasury in any fiscal year created by a
delay in collecting the taxes of that year. Such debt must not exceed, in the
aggregate, 5% of the total revenue receipts, less refunds, of the state treasury
in the fiscal year immediately preceding the year in which such debt is
incurred. The debt incurred must be repaid on or before the last day of the
fiscal year in which it is to be incurred out of the taxes levied for that
fiscal year. No such debt may be incurred in any fiscal year if there is then
outstanding unpaid debt from any previous fiscal year which was incurred to
supply a temporary deficit in the state treasury. No such short-term debt has
been incurred under this provision since the inception of the constitutional
authority referred to in this paragraph.
The obligations held from time-to-time in the Georgia Series will, under
present law, have a very high likelihood of having been validated and confirmed
in a judicial proceeding prior to issuance. The legal effect of a validation in
Georgia is to render incontestable the validity of the pertinent obligations and
the security therefor. Certain obligations of certain governmental entities in
the State are not required to be validated and confirmed; however, the
percentage of such non-validated obligations would be very low in relation to
all outstanding municipal obligations issued within the State.
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The State operates on a fiscal year beginning July 1 and ending June 30.
For example, "fiscal 1996" refers to the year ended June 30, 1996.
Based on data issued by the State of Georgia for the fiscal year 1996,
income tax receipts and sales tax receipts of the State for fiscal year 1996
comprised approximately 48.9% and 38%, respectively of the State tax receipts.
Further, such data shows that total State Treasury Receipts for fiscal 1996
($10,689,757,796) increased by approximately 3.75% over such State Treasury
Receipts in fiscal 1995. As of August 1996, the State estimates Tax Receipts for
1997 at $11,324,027,653.
The average annual unemployment rate of the civilian labor force in the
State for April 1996 was 4.5% according to preliminary data provided by the
Georgia Department of Labor. The Metropolitan Atlanta area, which is the largest
employment center in the area comprised of Georgia and its five bordering states
and which accounts for approximately 42% of the State's population, has for some
time enjoyed a lower rate of unemployment than the State considered as a whole.
In descending order, wholesale and retail trade, services, manufacturing,
government and transportation comprise the largest sources of employment within
the State.
Many factors affect and could have an adverse impact on the financial
condition of the State and other issuers of long-term debt obligations which may
be held in the Georgia Series, including national, social, environmental,
economic and political policies and conditions, many of which are not within the
control of the State or such issuers. It is not possible to predict whether or
to what extent those factors may affect the State and other issuers of long-term
debt obligations which may be held in the portfolio of the Georgia Series and
the impact thereof on the ability of such issuers to meet payment obligations.
The sources of the information are the official statements of issuers
located in Georgia, other publicly available documents and oral statements from
various Federal and State agencies.
Special Factors Affecting the Louisiana Municipal Series
Under Louisiana law, certain bonds and obligations constitute general
obligations of the State of Louisiana or are backed by the full faith and credit
of the State of Louisiana, and certain bonds and obligations do not or are not.
The Louisiana Municipal Series invests in both types of obligations.
The Bond Security and Redemption Fund of the State of Louisiana secures all
general obligation bonds of the State of Louisiana issued pursuant to Article
VII, Sections 6(A) and 6(B) of the constitution of Louisiana and those bonds
issued by State agencies or instrumentalities which are backed by the State's
full faith and credit, pari passu. With certain exceptions, all money deposited
in the State Treasury is credited to the Bond Security and Redemption Fund. In
each fiscal year, an amount sufficient to pay all of the State's current
obligations which are secured by its full faith and credit is allocated from the
Bond Security and Redemption Fund. After such allocation, with certain
exceptions, any money remaining in the Bond Security and Redemption Fund is
credited to the State General Fund.
Any bonds issued by the State of Louisiana other than general obligation
bonds, or any bonds issued by the State of Louisiana or any other issuer that
are not backed by the full faith and credit of the State of Louisiana are not
entitled to the benefits of the Bond Security and Redemption Fund.
The legislature has limited its ability to authorize certain debt and the
State Bond Commission's ability to issue certain bonds. The legislature may not
authorize general obligation bonds or other general obligations secured by the
full faith and credit of the State if the amount of authorized but unissued debt
plus the amount of outstanding debt exceeds twice the average annual revenues of
the Bond Security and Redemption Fund for the last three fiscal years completed
prior to such authorization. This debt limitation is not applicable to or shall
not include the authorization of refunding bonds secured by the full faith and
credit of the State, to authorized or outstanding bond anticipation notes, or to
the issuance of revenue anticipation notes. Bond anticipation notes are issued
in anticipation of the sale of duly authorized bonds or to fund capital
improvements. The State Bond Commission may not issue general obligation bonds
or other general obligations secured by the full faith and credit of the State
at any time when the highest annual debt service requirement for the current or
any subsequent fiscal years for such debt, including the debt service on such
bonds or other obligations then proposed to be sold by the State Bond
Commission, exceeds 10% of the average annual revenues of the Bond Security and
Redemption Fund for the last three fiscal years completed prior to such
issuance. This debt limitation is not applicable to the issuance or sale by the
State Bond Commission of refunding bonds secured by the full faith and credit of
the State of Louisiana or to bond anticipation notes.
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A new limitation on State borrowing has been established as a result of a
constitutional amendment passed by the voters of Louisiana in October 1993. As a
result of the amendment, the State Bond Commission may not approve the issuance
of general obligation bonds secured by the full faith and credit of the State,
or bonds secured by self-support revenues which in the first instance may not be
sufficient to pay debt service and will then draw on the full faith and credit
of the State, if the debt service requirement exceeds a specified percent of the
estimate of money to be received by the State general fund and dedicated funds
for each respective fiscal year as contained in the official forecast adopted by
the Revenue Estimating Conference at its first meeting at the beginning of each
fiscal year. The percentages are set on a graduated scale, beginning with 13.1%
for the 1993-1994 fiscal year and descending to 6.0% for the 2003-2004 fiscal
year and thereafter. The intent of the amendment is to reduce State borrowing
over time so that there is some limit put on the debt service portion of the
State budget.
The State Bond Commission may also issue and sell revenue anticipation
notes to avoid temporary cash flow deficits. These notes are payable from
anticipated cash, as reflected in the most recent official forecast of the
Revenue Estimating Conference. Unless issued in accordance with the provisions
of Article VIII, Section 6(A) of the State Constitution, the notes do not
constitute a full faith and credit obligation of the State.
The foregoing limitations on indebtedness imposed upon the legislature and
the State Bond Commission do not apply to obligations that are not general
obligations of the State of Louisiana or that are not backed by the full faith
and credit of the State of Louisiana.
Although the manner in which the Bond Security and Redemption Fund operates
is intended to adequately fund all obligations that are general obligations of
the State, or that are secured by the full faith and credit of the State, there
can be no assurance that particular bond issues will not be adversely affected
by expected budget gaps.
Since 1993, the State of Louisiana has experienced recurring budget
surpluses which have been applied to reduction of outstanding debts. These
surplus funds, under current laws, are used to retire existing debt. The State
has announced an estimated surplus for 1996-1997. This would be the fourth
consecutive year of budget surplus.
A statewide referendum on the continued legality of video poker, riverboat
gambling, and land based gaming resulted in a continuation of all three forms of
gaming in the major urban areas of Louisiana.
The continuation of general fund surpluses does not assure the revenues for
bonds not entitled to the full faith and credit of the State and that,
therefore, are not secured by the Bond Security and Redemption Fund. Examples of
these bonds include general obligation parish bond issues, revenue bonds issued
by the State of Louisiana or a parish or other political subdivision or agency,
and industrial development bonds. Revenue bonds are payable only from revenues
derived from a specific facility or revenue source. Industrial development bonds
are generally secured solely by the revenues served from payments made by the
industrial users. With respect to bonds issued by local political subdivisions
or agencies, because the 64 parishes within the State of Louisiana are subject
to their own revenue and expenditure problems, current and long-term adverse
developments affecting their revenue sources and their general economy may have
a detrimental impact on such bonds. Similarly, adverse developments affecting
Louisiana's state and local economy could have a detrimental impact on revenue
bonds and industrial development bonds.
Louisiana gained 54,000 jobs from March 1995 to March 1996. Louisiana is in
the second year of employment growth rates exceeding 3% per year. Personal
income rose by more than 7.5% between the first quarter of 1995 and 1996.
Manufacturing employment increased from a 1.3% growth rate in 1995 to a 1.7%
annual rate by the first quarter of 1996. The continued expansion of deep water
oil exploration in the Gulf of Mexico has been a significant contributor to both
the growth of employment and personal income in Louisiana.
Louisiana continues to grow more rapidly than the nation even though the
city of New Orleans is under performing the nation. Much of the growth in the
energy sector, ship building/repair, and manufacturing is outside of the New
Orleans area.
The statewide unemployment rate fell from 8.1% (1994 quarter 3) to 6.5%
(1996 quarter 1) which is similar to the New Orleans area at 6.4%. There is
still adequate labor available for future growth, although skilled labor
shortages are being reported in the ship building/repair and energy sectors of
the state's economy.
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Special Factors Affecting the Maryland Municipal Series
Some of the significant financial considerations relating to the
investments of the Maryland Series are summarized below. This information is
derived principally from official statements released on or before October 9,
1996, relating to issues of Maryland obligations and does not purport to be a
complete description.
The State's total expenditures for the fiscal years ending June 30, 1994,
June 30, 1995 and June 30, 1996 were $12.351 billion, $13.527 billion and
$13.914 billion, respectively. As of October 9, 1996, it was estimated that
total expenditures for fiscal year 1997 would be $14.631 billion. The State's
General Fund, the Fund from which all general costs of state government are paid
and to which taxes and other revenues not specifically directed by law to be
deposited in separate funds are recorded and which represents approximately
55%-60% of each year's total budget, had an unreserved surplus on a budgetary
basis of $60 million in fiscal year 1994, an unreserved surplus of $133 million
in fiscal year 1995 and an unreserved surplus of $13.1 million (of which $3.1
million was designated for fiscal 1997 operations) in fiscal year 1996. The
State Constitution mandates a balanced budget.
In April 1996, the General Assembly approved the $14.631 billion 1997
fiscal year budget (the "1997 Budget"). The 1997 Budget includes $2.9 billion in
aid to local governments (reflecting a $121.5 million increase in funding over
1996 that provides for substantial increases in education, health and police
aid), and $13.2 million in general fund deficiency appropriations for fiscal
year 1996. When the 1997 Budget was enacted, it was estimated that the general
fund surplus on a budgetary basis at June 30, 1996 would be approximately $22.5
million. The State also maintains a Revenue Stabilization Account in its Reserve
Fund which was established in 1986 to retain State revenues for future needs and
to reduce the need for future tax increases. The balance in the Revenue
Stabilization Account at June 30, 1996 was $461.2 million. Based on the 1997
Budget as enacted it is estimated that the balance in the Revenue Stabilization
Account of the State Reserve Fund at June 39, 1997 will be $493.2 million.
The public indebtedness of Maryland and its instrumentalities is divided
into three basic types. The State issues general obligation bonds for capital
improvements and for various State-sponsored projects. The Department of
Transportation of Maryland issues limited, special obligation bonds for
transportation purposes payable primarily from specific, fixed-rate excise taxes
and other revenues related mainly to highway use. Certain authorities issue
obligations payable solely from specific non-tax enterprise fund revenues and
for which the State has no liability and has given no moral obligation
assurance.
According to recent available ratings, general obligation bonds of the
State of Maryland are rated "AAA" by Moody's and "AAA" by S&P, as are those of
the largest county of the State, i.e., Montgomery County in the suburbs of
Washington, D.C. General obligation bonds of Baltimore County, a separate
political entity surrounding Baltimore City and the third largest county in the
State, are also rated "AAA" by Moody's and "AAA" by S&P. General obligation
bonds of Prince George's County, the second largest county, which is also in the
suburbs of Washington, D.C., are rated "AA" by Moody's and "AA" by S&P. The
general obligation bonds of those other counties of the State that are rated by
Moody's carry an "A" rating or better. Baltimore City's is general obligation
bonds are rated "A1" by Moody's and "A" by S&P. The Washington Suburban Sanitary
District, a bi-county agency providing water and sewage services in Montgomery
and Prince George's Counties, issues general obligation bonds rated "AA1" by
Moody's and "AA" by S&P.
While the ratings and other factors mentioned above indicate that Maryland
and its principal subdivisions and agencies, overall, are in satisfactory
economic health, there can, of course, be no assurance that this will continue
or that particular bond issues may not be adversely affected by changes in state
or local economic or political conditions.
Special Factors Affecting the Massachusetts Municipal Series
The Commonwealth of Massachusetts and certain of its cities, towns,
counties and other political subdivisions have at certain times in the past
experienced serious financial difficulties which have adversely affected their
credit standing. The recurrence of such financial difficulties could adversely
affect the market values and marketability of, or result in default in payment
on, outstanding obligations issued by the Commonwealth or its public authorities
or municipalities. In addition, recent developments regarding the Massachusetts
statutes which limit the taxing authority of certain Massachusetts governmental
entities may impair the ability of the issuers of some Massachusetts Municipal
Obligations to maintain debt service on their obligations.
Annual expenditures by the Commonwealth for programs and services provided
by state government for fiscal years 1990 and 1991 exceeded total current year
revenues. In order to fund the fiscal 1990 budgetary deficit (and certain prior
year Medicaid reimbursement payments), the legislature authorized the issuance
of up to $1.42 billion of bonds. Retroactive
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application of the proceeds of such bonds would have resulted in fiscal 1990
positive closing balances of $258.3 million on an adjusted basis. Total
expenditures for fiscal 1991 were $13.935 billion and total revenues were
$13.913 billion, resulting in a $21.2 million operating loss. Application of the
adjusted fiscal 1990 fund balances of $258.3 million resulted in a final fiscal
1991 budgetary surplus of $237.1 million. Total expenditures and other uses for
fiscal 1992 totaled approximately $13.914 billion and total revenues and other
sources totaled approximately $14.226 billion. Overall, the budgeted operating
funds ended fiscal 1992 with an excess of revenues and other sources over
expenditures and other uses of $312 million, and with positive fund balances of
approximately $549 million. Total expenditures and other uses for fiscal 1993
totaled approximately $15.193 billion and total revenues and other sources
totaled approximately $15.206 billion. Overall, the budgeted operating funds
ended fiscal 1993 with an excess of revenues and other sources over expenditures
and other uses of $13 million, and with positive fund balances of approximately
$563 million. Total expenditures and other uses for fiscal 1994 totaled
approximately $15.952 billion and total revenues and other sources totaled
approximately $15.979 billion, resulting in an excess of revenues and other
sources over expenditures and other uses of $27 million and in positive fund
balances of approximately $589 million. Total expenditures and other uses for
fiscal 1995 totaled approximately $16.794 billion and total revenues and other
sources totaled approximately $16.931 billion. Overall, the budgeted operating
funds ended fiscal 1995 with an excess of revenues and other sources over
expenditures and other uses of $137 million, and with positive fund balances of
approximately $726 million. Total expenditures and other uses for fiscal 1996
totaled approximately $17.925 billion and total revenues and other sources
totaled approximately $18.371 billion. Overall, the budgeted operating funds
ended fiscal 1996 with an excess of revenues and other sources over expenditures
and other uses of $446 million, and with positive fund balances of approximately
$1,172 billion.
The fiscal 1997 budget is based on estimated total revenues and other
sources of approximately $17.701 billion. total expenditures and other uses for
fiscal 1997 are currently estimated at approximately $18.169 billion. The fiscal
1997 budget proposes that the $468 million difference between estimated revenues
and other sources and expenditures and other uses be provided for by application
of the beginning fund balances for fiscal 1997, to produce estimated ending fund
balances for fiscal 1997 of approximately $704 million. The fiscal 1997 budget
is based upon numerous spending and revenue estimates, the achievement of which
cannot be assured.
On December 13, 1996, the County of Middlesex defaulted on the payment of
$4,500,000 of its general obligation notes issued in connection with the
operation of the county hospital. Litigation has been brought against the County
by the holders of the notes, and the Governor and members of the legislature are
considering various options to deal with the default, including the abolishment
of county government in Massachusetts.
In Massachusetts, the tax on personal property and real estate is the
principal source of tax revenues available to cities and towns to meet local
costs. "Proposition 2 1/2", an initiative petition adopted by the voters of the
Commonwealth of Massachusetts on November 4, 1980, limits the power of
Massachusetts cities and towns and certain tax-supported districts and public
agencies to raise revenue from property taxes to support their operations,
including the payment of debt service. Proposition 2 1/2 required those cities
and towns with property tax levies in excess of 2 1/2% of the full and fair cash
value of their taxable real estate and personal property to reduce their levies
to the 2 1/2% level. It also limited each year's increase in the tax levy for
all cities and towns to 2 1/2% of the prior year's maximum levy, with an
exception for certain property added to the tax rolls and for certain
substantial valuation increases other than as part of a general reevaluation.
The reductions in local revenues and anticipated reductions in local
personnel and services resulting from Proposition 2 1/2 created strong demand
for substantial increases in state funded local aid, which increased
significantly in fiscal years 1982 through 1989. The effect of this increase in
local aid was to shift a major part of the impact of Proposition 2 1/2 to the
Commonwealth. Because of decreased Commonwealth revenues, local aid declined
significantly in fiscal 1990, 1991 and 1992. Local aid increased somewhat in
fiscal 1993, fiscal 1994, fiscal 1995 and fiscal 1996 and is expected to
increase again in fiscal 1997.
Limitations on state tax revenues have been established by legislation
approved by the Governor on October 23, 1986 and by an initiative petition
approved by the voters on November 4, 1986. The two measures are inconsistent in
several respects, including the methods of calculating the limits and the
exclusions from the limits. The initiative petition, unlike its legislative
counterpart, contains no exclusion for debt service on Commonwealth bonds and
notes. Under both measures, excess revenues are returned to taxpayers in the
form of lower taxes. It is not yet clear how differences between the two
measures will be resolved. State tax revenues in fiscal 1987 did exceed the tax
limit imposed by the initiative petition by an estimated $29.2 million. This
amount was returned to the taxpayers in the form of a tax credit against
calendar year 1987 personal income tax liability pursuant to the provisions of
the initiative petition. State tax revenues since fiscal 1988, have not exceeded
the limit imposed by either the initiative petition or the legislative
enactment.
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The Commonwealth maintains financial information on a budgetary basis.
Since fiscal year 1986, the Comptroller also has prepared annual financial
statements in accordance with generally accepted accounting principles (GAAP) as
defined by the Government Accounting Standards Board. GAAP basis financial
statements indicate that the Commonwealth ended fiscal 1990, 1991, 1992, 1993
and 1994 with fund deficits of approximately $1.896 billion, $761.2 million,
$397.4 million, $184.1 million and $72 million, respectively. GAAP basis
financial statements for fiscal 1995 indicate that the Commonwealth ended such
year with a fund equity of $287.4 million. GAAP basis financial statements for
fiscal 1996 indicate that the Commonwealth ended such year with a fund equity of
$709.2 million.
Special Factors Affecting the Michigan Municipal Series
The principal sectors of Michigan's diversified economy are manufacturing
of durable goods (including automobiles and components and office equipment),
tourism and agriculture. As reflected in historical employment figures, the
State's economy has lessened its dependence upon durable goods manufacturing;
however, such manufacturing continues to be an important part of the State's
economy. These particular industries are highly cyclical and in the period
1995-96 operated at somewhat less than full capacity but at higher levels than
in the immediate prior years. The cyclical nature of these industries and the
Michigan economy can adversely affect the revenue streams of the State and its
political subdivisions because it may adversely impact tax sources, particularly
sales taxes, income taxes and single business taxes.
The Michigan General Fund balances for the 1989-90 and 1990-91 fiscal years
were negative $310 million and $169.4 million, respectively. This negative
balance had been eliminated as of the end of fiscal year 1991-92, which ended
September 30, 1992. General Fund surplus at the end of fiscal years 1992-93
through 1994-95 was transferred, as required by statute, to the Counter-Cyclical
Budget and Economic Stabilization Fund ("BSF"). A General Fund surplus for
fiscal year 1995-96, which ended September 30, 1996, is expected to result in a
preliminary unreserved BSF balance at September 30, 1996 of $994.1 million. The
State's Annual Financial report for fiscal years ending September 30 is
generally available at the end of March of the following year.
Beginning in 1993, the Michigan Legislature enacted several statutes which
significantly affect Michigan property taxes and the financing of primary and
secondary school operations. The property tax and school finance reform measures
included a ballot proposal ("Proposal A") and constitutional amendment which was
approved by voters on March 15, 1994. Under Proposal A as approved, the State
sales and use tax rates were increased from 4% to 6%, the State income tax and
cigarette tax were increased, the Single Business Tax imposed on business
activity within the state was decreased and, beginning in 1994, a State property
tax of 6 mills is now imposed on all real and personal property currently
subject to the general property tax. Proposal A contains additional provisions
regarding the ability of local school districts to levy supplemental property
taxes for operating purposes as well as a limit on assessment increased for each
parcel of property, beginning in 1995 to the lesser of 5% or the rate of
inflation.
Under Proposal A, much of the additional revenue generated by the new taxes
will be dedicated to the State School Aid Fund. Proposal A shifts significant
portions of the cost of local school operations from local school districts to
the State and raises additional State revenues to fund these additional State
expenses. These additional revenues will be included within the State's
constitutional revenue limitations and may impact the State's ability to raise
additional revenues in the future.
Many of Michigan's local school districts have filed lawsuits against the
State regarding the manner in which the State disburses funds to school
districts for special education and special education transportation, bilingual
education, driver education and school lunch programs. The aggregate total
amount of liability on the lower court judgments in these cases, including a
case captioned Donald Durant, et al. v. State of Michigan, which is on appeal
before the Michigan Supreme Court, was estimated at $495 million as of August
1995.
Currently, the State's general obligation bonds are rated Aa by Moody's and
AA by S&P. Moody's upgraded its rating from A1 to Aa in July 1995. To the extent
that the portfolio of Michigan obligations is comprised of revenue or general
obligations of local governments or authorities, rather than general obligations
of the State of Michigan, ratings on such Michigan obligations will be different
from those given to the State of Michigan and their value may be independently
affected by economic matters not directly impacting the State.
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Special Factors Affecting the Minnesota Municipal Series
The information set forth below is derived from official statements
prepared in connection with the issuance of obligations of the State of
Minnesota and other sources that are generally available to investors. The
information is provided as general information intended to give a recent
historical description and is not intended to indicate further or continuing
trends in the financial or other positions of the State of Minnesota. Such
information constitutes only a brief summary, relates primarily to the State of
Minnesota, does not purport to include details relating to all potential issuers
within the State of Minnesota whose securities may be purchased by the Minnesota
Municipal Series, and does not purport to be a complete description.
The State of Minnesota has experienced certain budgeting and financial
problems since 1980.
The State Accounting General Fund balance at June 30, 1987, was positive
$168.5 million. The Commissioner of Finance, in his November 1986 forecast,
estimated an Accounting General Fund balance at June 30, 1989, of negative $800
million. The Legislature in May 1987 enacted measures expected to yield
approximately $700 million in additional revenues for the 1987-1989 biennium by
broadening the bases of corporate income and sales taxes and raising the rate of
the cigarette excise tax to 38 cents a pack from 23 cents. The corporate tax
rate was lowered to 9.5% from 12%, and a minimum tax was imposed.
Accounting General Fund appropriations for the 1987-1989 biennium were
$11.35 billion, an increase of 9.4%. A $250 million budget reserve also was
approved.
The 1988 Legislature increased 1987-1989 expenditures a total of $223.8
million and revenues a total of $125.5 million.
The Accounting General Fund balance at June 30, 1989, was positive $360
million.
The 1989 Legislature authorized $13.35 billion in spending for the
1989-1991 biennium, a 16.2% increase over the previous biennium, after excluding
intergovernmental fund transfers. In addition, the Legislature approved a $550
million budget reserve.
The 1989 Legislature passed an omnibus tax bill that included $272 million
in property tax relief and a $72 million increase in tax revenues. The Governor
vetoed the omnibus tax bill, demanding that a larger share of property tax
relief go to business and that the state-subsidized property tax system be
reformed. At a special session in the Fall of 1989, a bill was enacted that
included $267 million in property tax relief and a $79 million increase in tax
revenues.
The Commissioner of Finance, in his November 1989 forecast, estimated the
Accounting General Fund balance at June 30, 1991, at negative $161 million. The
Commissioner forecast an $89 million decline in revenues, a $60 million increase
in human services expenditures and a net $29 million decrease due to other
fiscal changes.
The 1990 Legislature enacted budget changes that resulted in a $127 million
net savings for the 1989-1991 biennium. A total of $178 million in spending
reductions were enacted, and increased fees and other revenue changes accounted
for a $12 million gain. New spending totaling $63 million was approved.
A November 1990 forecast estimated a $197 million shortfall for the
biennium ending June 30, 1991, and a $1.2 billion shortfall for the biennium
ending June 30, 1993 due to spending pressures and reduced revenues. A March
1991 forecast reduced the estimated shortfall for the biennium ending June 30,
1993, to $1.1 billion.
In January 1991 the Legislature made $197 million in spending reductions
for the biennium ended June 30, 1991. The State Accounting General Fund balance
at June 30, 1991, was $31 million.
The 1991 Legislature authorized $13.886 billion in spending for the
1991-1993 biennium. Giving effect to inclusion in the Accounting General Fund of
$70 million in dedicated revenues previously budgeted in other funds and
dedication of 1.5 percent of existing sales tax as well as a new .5 percent
local option sales tax to a Local Government Trust Fund, the total increase in
authorized spending was 9.2 percent.
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Tax law changes enacted by the 1991 Legislature were expected to yield $590
million in additional revenues for the 1991-1993 biennium. Federal conformity on
individual and corporate income taxes was expected to raise $82 million; changes
in top individual income tax rates and elimination of some deductions and
exemptions were expected to yield an additional $89 million; extension of the
sales tax to kennel services, telephone paging services and some
business-to-business phone services $38 million; a 5 cents a pack cigarette tax
increase to 43 cents $37.2 million; and the .5 percent sales tax increase $370
million.
After the Legislature adjourned in May 1991, the Commissioner of Finance
estimated that at June 30, 1993, the State would have a $400 million budget
reserve, the amount approved by the 1991 Legislature, and a $103.2 million
Accounting General Fund balance.
In February 1992 the Commissioner of Finance estimated the Accounting
General Fund balance at June 30, 1993, at negative $569 million. The balance at
June 30, 1995, was projected at negative $1.75 billion.
The 1992 Legislature reduced expenditures by $262 million for the biennium
ending June 30, 1993, enacted revenue measures expected to increase revenue by
$149 million, and reduced the budget reserve by $160 million to $240 million.
After the Legislature adjourned in April 1992, the Commissioner of Finance
estimated the Accounting General Fund balance at June 30, 1993, at $2.4 million,
and projected the balance at June 30, 1995, at negative $837 million. A November
1992 forecast estimated the balance at June 30, 1993, at positive $217 million
and projected the balance at June 30, 1995, at negative $769 million.
A March 1993 forecast projected an Accounting General Fund balance at June
30, 1995, at negative $163 million out of a budget for the biennium of
approximately $16.7 billion, and estimated a balance at June 30, 1997, at
negative $1.6 billion out of a budget of approximately $18.7 billion.
The 1993 Legislature authorized $16.519 billion in spending for the
1993-1995 biennium, an increase of 13.0 percent from 1991-1993 expenditures.
Resources for the 1993-1995 biennium were projected to be $16.895 billion,
including $657 million carried forward from the previous biennium. The $16.238
billion in projected non-dedicated and dedicated revenues was 10.3 percent
greater than in the previous biennium and included $175 million from revenue
measures enacted by the 1993 Legislature. The Legislature increased the health
care provider tax to raise $79 million, transferred $39 million into the
Accounting General Fund and improved collection of accounts receivable to
generate $41 million.
After the Legislature adjourned in May 1993, the Commissioner of Finance
estimated that at June 30, 1995, the Accounting General Fund balance would be
$16 million and the budget reserve, as approved by the 1993 Legislature, would
be $360 million. The Accounting General Fund balance at June 30, 1993 was $463
million.
The Commissioner of Finance, in a November 1993 forecast, estimated the
Accounting General Fund balance at June 30, 1995, at $430 million, due to
projected increases in revenues and reductions in expenditures, and the balance
at June 30, 1997, at $389 million. The Commissioner recommended that the budget
reserve be increased to $500 million. He estimated that if current laws and
policies continued unchanged, revenue would grow 7.7 percent and expenditures
6.0 percent in the 1995-1997 biennium.
A March 1994 forecast projected an Accounting General Fund balance at June
30, 1995, at $623 million, principally due to a projected $235 million increase
in revenues to $16.6 billion for the biennium. The balance at June 30, 1997, was
estimated to be $247 million.
The 1994 Legislature provided for a $500 million budget reserve;
appropriated to school districts $172 million to allow the districts, for
purposes of state aid calculations, to reduce the portion of property tax
collections that the school districts must recognize in the fiscal year during
which they receive the property taxes; increased expenditures $184 million; and
increased expected revenues $4 million.
Of the $184 million in increased expenditures, criminal justice initiatives
totaled $45 million, elementary and higher education $31 million, environment
and flood relief $18 million, property tax relief $55 million, and transit $11
million. A six-year strategic capital budget plan was adopted with $450 million
in projects financed by bonds supported by the Accounting General Fund. Other
expenditure increases totaled $16.5 million.
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Included in the expected revenue increase of $4 million were conformity
with federal tax changes to increase revenues $27.5 million, a sales tax
phasedown on replacement capital equipment and miscellaneous sales tax
exemptions decreasing revenues $17.3 million, and other measures decreasing
revenues $6.2 million.
After the Legislature adjourned in May 1994, the Commissioner of Finance
estimated the Accounting General Fund balance at June 30, 1995, at $130 million.
The Commissioner of Finance, in a November 1994 forecast, estimated the
Accounting General Fund balance at June 30, 1995, at $268 million, due to
projected increases in revenues and decreases in expenditures, and the balance
at June 30, 1997, at $190 million.
A February 1995 forecast projected an Accounting General Fund balance at
June 30, 1995, at $383 million, due to a $93.5 million increase in projected
revenues and a $21.0 million decrease in expenditures. The balance at June 30,
1997, was projected at $250 million.
The 1995 Legislature authorized $18.220 billion in spending for the
1995-1997 biennium, an increase of $1.395 billion, or 8.3 percent, from
1993-1995 expenditures. Resources for the 1995-1997 biennium were projected to
be $18.774 billion, including $921 million carried forward from the previous
biennium.
The Legislature authorized 7.1 percent more spending for elementary and
secondary education in the 1995-1997 biennium than in 1993-1995, 0.9 percent
more in local government aids, 14.2 percent more for health and human services,
2.3 percent more for higher education, and 25.1 percent more for corrections.
The Legislature set the budget reserve at $350 million and established a
supplementary reserve of $204 million in view of predicted federal cutbacks.
After the Legislature adjourned in May 1995, the Commissioner of Finance
estimated that at June 30, 1997, the Accounting General Fund balance would be
zero. The Accounting General Fund Balance at June 30, 1995, was $481 million.
The Commissioner of Finance, in a November 1995 forecast, estimated the
Accounting General Fund balance at June 30, 1997, at $824 million, due to a $490
million increase in revenues from those projected in May 1995, a $199 million
reduction in projected expenditures, and a $135 million increase in the amount
carried forward from the 1993-1995 biennium. An improved national economic
outlook increased projected net sales tax revenue $257 million and reduced
projected human services expenditures $231 million. The Commissioner estimated
the Accounting General Fund balance at June 30, 1999, at negative $28 million.
Only $15 million of the $824 million projected 1995-1997 surplus was
available for spending. The statute requires that an additional $15 million be
placed in the supplementary budget reserve, and an additional $794 million must
be appropriated to school districts to allow the districts, for purposes of
state aid calculations, to eliminate the 48 percent of property tax collections
that the school districts must recognize in the fiscal year during which they
receive the property taxes.
A February 1996 forecast projected an Accounting general Fund balance at
June 30, 1997, at $873 million, due to a $104 million increase in projected
revenues, a $19 million increase in expenditures, and a $36 million reduction in
the June 30, 1995, ending balance. The amount available for spending increased
from $15 million to $64 million.
In February 1996, the Commissioner of Finance estimated the Accounting
General Fund balance at June 30, 1999, at $54 million.
The 1996 Legislature reduced the State of Minnesota's commitment to
eliminate the so-called school recognition shift. The 1995 Legislature had voted
to allow school districts, for purposes of state aid calculations, to eliminate
the 48 percent of property tax collections that the school districts must
recognize in the fiscal year during which they receive the property taxes. The
1996 Legislature raised the percentage for the 1995-1997 biennium from zero to 7
percent, saving the State $116 million.
The 1996 Legislature increased expenditures $130 million, including $37
million for elementary education and youth development; $14 million for higher
education; $17 million for health systems and human services reforms; $16
million for public safety and criminal justice; and 36 million for
transportation, environment and technology. The Legislature also approved $614
million in capital projects to be funded by general obligation bonds and
appropriations and increased expected revenues $5 million.
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After the Legislature adjourned in April 1996, the Commissioner of Finance
estimated the Accounting General Fund balance at June 30, 1997, at $1 million.
The Accounting General Fund balance at June 30, 1996, was $445 million.
The Commissioner of Finance, in a November 1996 forecast, estimated the
Accounting general Fund balance at June 30, 1997, at $793 million, due to a $646
million increase in revenues from those projected in April 1996, a $209 million
reduction in expenditures, and $63 million in other changes. The longest period
of national economic growth since World War II, through mid-1999, was forecast.
Individual income taxes were forecast to be $427 million more than projected in
April 1996, and sales taxes $81 million more. Of the $209 million reduction in
forecast expenditures, $199 million were health and human services expenditures.
Existing statutes require the first $114 million of the forecast balance to
be dedicated to a new education aid reserve for use in the 1997-1999 biennium.
Another $157 million must be used to increase from 85 to 90 percent the portion
of state aid to school districts that is paid in the fiscal year during which
the districts becomes entitled to the aid.
In November 1996, the Commissioner of Finance estimated the Accounting
General Fund balance at June 30, 1999, at $1.4 billion.
The State of Minnesota has no obligation to pay any bonds of its political
or governmental subdivisions, municipalities, governmental agencies, or
instrumentalities. The creditworthiness of local general obligation bonds is
dependent upon the financial condition of the local government issuer, and the
creditworthiness of revenue bonds is dependent upon the availability of
particular designated revenue sources or the financial conditions of the
underlying obligors. Although most of the bonds owned by the Minnesota Municipal
Series are expected to be obligations other than general obligations of the
State of Minnesota itself, there can be no assurance that the same factors that
adversely affect the economy of the State generally will not also affect
adversely the market value or marketability of such other obligations, or the
ability of the obligors to pay the principal of or interest on such obligations.
At the local level, the property tax base has recovered after its growth
was slowed in many communities in the early 1990's by over capacity in certain
segments of the commercial real estate market. Local finances are also affected
by the amount of state aid that is made available. Further, various of the
issuers within the State of Minnesota, as well as the State of Minnesota itself,
whose securities may be purchased by the Minnesota Municipal Series, may now or
in the future be subject to lawsuits involving material amounts. It is
impossible to predict the outcome of these lawsuits. Any losses with respect to
these lawsuits may have an adverse impact on the ability of these issuers to
meet their obligations.
Legislation enacted in 1995 provides that it is the intent of the Minnesota
legislature that interest income on obligations of Minnesota governmental units,
and exempt-interest dividends that are derived from interest income on such
obligations, be included in the net income of individuals, estates, and trusts
for Minnesota income tax purposes if it is judicially determined that the
exemption by Minnesota of such interest or such exempt interest dividends
unlawfully discriminates against interstate commerce because interest income on
obligations of governmental issuers located in other states, or exempt-interest
dividends derived from such obligations, is so included. This provision applies
to taxable years that begin during or after the calendar year in which such
judicial decision becomes final, regardless of the date on which the obligations
were issued, and other remedies apply for previous taxable years. The United
States Supreme Court in 1995 denied certiorari in a case in which an Ohio state
court upheld an exemption for interest income on obligations of Ohio
governmental issuers, even though interest income on obligations of non-Ohio
governmental issuers was subject to tax. The Ohio Supreme Court, in a subsequent
case involving the same taxpayer and the same issue, recently refused to
reconsider the merits of the case on the ground that the previous final state
court judgment barred any claim arising out of the transaction that was the
subject of the previous action. The taxpayer has appealed to the United States
Supreme Court, which has discretion to decide if it will hear the case. Even if
the court declines to consider the appeal, it cannot be predicted whether a
similar case will be brought in Minnesota or elsewhere, or what the outcome of
such case would be. Should an adverse decision be rendered, the value of the
securities purchased by the Minnesota Municipal Series might be adversely
affected, and the value of the shares of the Minnesota Municipal Series might
also be adversely affected.
The State's bond ratings in October 1996 were Aaa by Moody's and AA+ by
S&P. Economic difficulties and the resultant impact on State and local
government finances may adversely affect the market value of obligations in the
portfolio of the Minnesota Municipal Series or the ability of respective
obligors to make timely payment of the principal and interest on such
obligations.
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Special Factors Affecting the Missouri Municipal Series
Industry and Employment. While Missouri has a diverse economy with a
distribution of earnings and employment among manufacturing, trade and service
sectors closely approximating the average national distribution, the national
economic recession of the early 1980's had a disproportionately adverse impact
on the economy of Missouri. During the 1970's, Missouri characteristically had a
pattern of unemployment levels well below the national averages. However, since
the 1980 to 1983 recession periods Missouri unemployment levels generally
approximated or slightly exceeded the national average. A return to a pattern of
high unemployment could adversely affect the Missouri debt obligations acquired
by the Fund and, consequently, the value of the shares in the Fund.
The Missouri portions of the St. Louis and Kansas City metropolitan areas
contain approximately 1,945,813 and 1,016,475 residents, respectively,
constituting over fifty percent of Missouri's 1995 population census of
approximately 5,339,041. St. Louis is an important site for banking and
manufacturing activity, as well as a distribution and transportation center,
with nine Fortune 500 industrial companies (as well as other major educational,
financial, insurance, retail, wholesale and transportation companies and
institutions) headquartered there. Kansas City is a major agribusiness center
and an important center for finance and industry. Economic reversals in either
of these two areas would have a major impact on the overall economic condition
of the State of Missouri. Additionally, the State of Missouri has a significant
agricultural sector which is experiencing farm-related problems comparable to
those which are occurring in other states. To the extent that these problems
were to intensify, there could possibly be an adverse impact on the overall
economic condition of the State of Missouri.
Defense related business plays an important role in Missouri's economy.
There are a large number of civilians employed at the various military
installations and training bases in the State and recent action of the Defense
Base Closure and Realignment Commission will result in the loss of a substantial
number of civilian jobs in the St. Louis Metropolitan area. Further, aircraft
and related businesses in Missouri are the recipients of substantial annual
dollar volumes of defense contract awards. The contractor receiving the second
largest dollar volume of defense contracts in the United States in 1995 was
McDonnell Douglas Corporation. McDonnell Douglas Corporation is the State's
largest employer, currently employing approximately 20,000 employees in
Missouri. Recent changes in the levels of military appropriations and the
cancellation of the A-12 program have affected McDonnell Douglas Corporation in
Missouri and over the last four years it has reduced its Missouri work force by
approximately 30%. There can be no assurances there will not be further changes
in the levels of military appropriations, and, to the extent that further
changes in military appropriations are enacted by the United States Congress,
Missouri could be disproportionately affected. On December 15, 1996, The Boeing
Company and McDonnell Douglas Corporation announced that The Boeing Company
planned to acquire McDonnell Douglas Corporation. It is impossible to determine
what effect, if any, completion of the acquisition will have on the operations
of McDonnell Douglas Corporation. However, any shift or loss of production
operations now conducted in Missouri would have a negative impact on the economy
of the state and particularly on the economy of the St. Louis metropolitan area.
Desegregation lawsuits in St. Louis and Kansas City continue to require
significant levels of state funding and are sources of uncertainty; litigation
continues on many issues, court orders are unpredictable, and school district
spending patterns have proven difficult to predict. A recent Supreme Court
decision favorable to the State may decrease the level of State funding required
in the future, but the impact of this decision is uncertain. The State paid $282
million for desegregation costs in fiscal 1994 and the budget for fiscal 1995
provided $315 million. This expense accounts for close to 7% of total state
General Revenue Fund spending.
Revenue and Limitations Thereon. Article X, Sections 16-24 of the
Constitution of Missouri (the "Hancock Amendment"), imposes limitations on the
amount of State taxes which may be imposed by the General Assembly of Missouri
(the "general Assembly") as well as on the amount of local taxes, licenses and
fees (including taxes, licenses and fees used to meet debt service commitments
on debt obligations) which may be imposed by local governmental units (such as
cities, countries, school districts, fire protection districts and other similar
bodies) in the State of Missouri in any fiscal year.
The State limit on taxes is tied to total State revenues for fiscal year
1980-81, as defined in the Hancock Amendment, adjusted annually in accordance
with the formula set forth in the amendment, which adjusts the limit based on
increases in the average personal income of Missouri for certain designated
periods. The details of the amendment are complex and clarification from
subsequent legislation and further judicial decisions may be necessary.
Generally, if the total State revenues exceed the State revenue limit imposed by
Section 18 of Article X by more than one percent, the State is required to
refund the excess. The State revenue limitation imposed by the Hancock Amendment
does not apply to taxes imposed for the payment of principal and interest on
bonds, approved by the voters and authorized by the Missouri Constitution. The
revenue
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limit also can be exceeded by a constitutional amendment authorizing new or
increased taxes or revenues adopted by the voters of the State of Missouri.
The Hancock Amendment also limits new taxes, licenses and fees and
increases in taxes, licenses and fees by local governmental units in Missouri.
It prohibits counties and other political subdivisions (essentially all local
governmental units) from levying new taxes, licenses and fees or increasing the
current levy of an existing tax, license or fee without the approval of the
required majority of the qualified voters of that county or other political
subdivision voting thereon.
When a local governmental unit's tax base with respect to certain fees or
taxes is broadened, the Hancock Amendment requires the tax levy or fees to be
reduced to yield the same estimated gross revenue as on the prior base. It also
effectively limits any percentage increase in property tax revenues to the
percentage increase in the general price level (plus the value of new
construction and improvements), even if the assessed valuation of property in
the local governmental unit, excluding the value of new construction and
improvements, increases at a rate exceeding the increase in the general price
level.
Special Factors Affecting the New York Municipal Series
The following information is a summary of special factors affecting the New
York Municipal Series. It does not purport to be a complete description and is
based on information from official statements relating to securities offerings
of New York issuers and, with respect to information about credit ratings, from
newspaper reports.
General
New York (the "State") is the third most populous state in the nation and
has a relatively high level of personal wealth. The State's economy is diverse
with a comparatively large share of the nation's finance, insurance,
transportation, communications and services employment, and a very small share
of the nation's farming and mining activity. The State's location, air transport
facilities and natural harbors have made it an important link in international
commerce. Travel and tourism constitute an important part of the economy. The
State has a declining proportion of its workforce engaged in manufacturing and
an increasing proportion engaged in service industries. This transition reflects
a national trend.
The State has historically been one of the wealthiest states in the nation.
For decades, however, the State economy has grown more slowly than that of the
nation as a whole, resulting in the gradual erosion of its relative economic
affluence. Statewide, urban centers have experienced significant changes
involving migration of the more affluent to the suburbs and an influx of
generally less affluent residents. Regionally, the older Northeast cities have
suffered because of the relative success that the South and the West have had in
attracting people and business. New York City (the "City") has also had to face
greater competition as other major cities have developed financial and business
capabilities which make them less dependent on the specialized services
traditionally available almost exclusively in the City.
Although industry and commerce are broadly spread across the State,
particular activities are concentrated in the following areas: Westchester
County -- headquarters for several major corporations; Buffalo -- diverse
manufacturing base; Rochester -- manufacture of photographic and optical
equipment; Syracuse and Utica-Rome area -- production of machinery and
transportation equipment; Albany-Troy-Schenectady -- government and education
center and production of electrical products; Binghampton -- original site of
the International Business Machines Corporation and continued concentration of
employment in computer and other high technology manufacturing; and the City --
headquarters for the nation's securities business and for a major portion of the
nation's major commercial banks, diversified financial institutions and life
insurance companies. In addition, the City houses the home offices of three
major radio and television broadcasting networks, most of the national magazines
and a substantial portion of the nation's book publishers. The City also retains
leadership in the design and manufacture of men's and women's apparel.
Economic Outlook
The economic and financial condition of the State may be affected by
various financial, social, economic and political factors. Those factors can be
very complex, may vary from fiscal year to fiscal year, and are frequently the
result of actions taken not only by the State and its agencies and
instrumentalities, but also by entities, such as the federal government, that
are not under the control of the State. The State Financial Plan is based upon
forecasts of national and State economic activity. Economic forecasts have
frequently failed to predict accurately the timing and magnitude of changes in
the national and the State economies. Many uncertainties exist in forecasts of
both the national and State economies, including consumer attitudes toward
spending, federal financial and monetary policies, the availability of credit,
and the condition of the world economy, which would have an adverse effect on
the State. There can be no assurance that the State economy will not experience
results in the current fiscal year that are worse than predicted, with
corresponding material and adverse effects on the State's projections of
receipts and disbursements.
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The national economy began the current expansion in 1991 and has added over
11 million jobs since early 1992. However, the recession lasted longer in the
State and the State's economic recovery has lagged behind the nation's. Although
the State has added approximately 240,000 jobs since November 1992, employment
growth in the State has been hindered during recent years by significant
cutbacks in the computer and instrument manufacturing, utility, defense, and
banking industries.
The State has for many years had a very high State and local tax burden
relative to other States. The State and its localities have used these taxes to
develop and maintain their transportation networks, public schools and colleges,
public health systems, other social services and recreational facilities.
Despite these benefits, the burden of State and local taxation, in combination
with the many other causes of regional economic dislocation, may have
contributed to the decisions of some businesses and individuals to relocate
outside, or not locate within, the State.
To stimulate the State's economic growth, the State has developed programs,
including the provision of direct financial assistance, designed to assist
businesses to expand existing operations located within the State and to attract
new businesses to the State.
In addition, the State has provided various tax incentives to encourage
business relocation and expansion. These programs include direct tax abatements
from local property taxes for new facilities (subject to locality approval) and
investment tax credits that are applied against the State corporation franchise
tax. Furthermore, the State has created over 40 "economic development zones" in
economically distressed regions of the State. Businesses in these zones are
provided a variety of tax and other incentives to create jobs and make
investments in the zones.
Current Fiscal Year
The State's current fiscal year commenced on April 1, 1996, and ends on
March 31, 1997, and is referred to herein as the State's 1996-97 fiscal year.
The State's budget for the 1996-97 fiscal year was enacted by the Legislature on
July 13, 1996, more than three months after the start of the fiscal year. The
State Financial Plan for the 1996-97 fiscal year was formulated on July 25, 1996
and is based on the State's budget as enacted by the Legislature and signed into
law by the Governor, as well as actual results for the first quarter of the
current fiscal year.
After adjustments for comparability between fiscal years, the adopted
1996-97 budget projects a year-over-year increase in General Fund disbursements
of 0.2 percent. Adjusted State Funds (excluding federal grants) disbursements
are projected to increase by 1.6 percent from the prior fiscal year. All
Governmental Funds projected disbursements increase by 4.1 percent over the
prior fiscal year, after adjustments for comparability.
The 1996-97 State Financial Plan is projected to be balanced on a cash
basis. As compared to the Governor's proposed budget as revised on March 20,
1996, the State's adopted budget for 1996-97 increases General Fund spending by
$842 million, primarily from increases for education, special education and
higher education ($563 million). The balance represents funding increases to a
variety of other programs, including community projects and increased assistance
to fiscally distressed cites. Resources used to fund these additional
expenditures include $540 million in increased revenues projected for 1996-97
based on higher-than-projected tax collections during the first half of calendar
1996, $110 million in projected receipts from a new State tax amnesty program,
and other resources including certain non-recurring resources. The total amount
of non-recurring resources included in the 1996-97 State budget is projected by
the Division of Budget (the "DOB") to be $1.3 billion, or 3.9 percent of total
General Fund receipts.
The economic and financial condition of the State may be affected by
various financial, social, economic and political factors. Those factors can be
very complex, may vary from fiscal year to fiscal year, and are frequently the
result of actions taken not only by the State and its agencies and
instrumentalities, but also by entities, such as the federal government, that
are not under the control of the State. In addition, the State Financial Plan is
based upon forecasts of national and State economic activity. Economic forecasts
have
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frequently failed to predict accurately the timing and magnitude of changes in
the national and the State economies. The DOB believes that its projections of
receipts and disbursements relating to the current State Financial Plan, and the
assumptions on which they are based, are reasonable. Actual results, however,
could differ materially and adversely from the projections set forth herein, and
those projections may be changed materially and adversely from time to time.
There are also risks and uncertainties concerning the future-year impact of
actions taken in the 1996-97 budget.
The four governmental fund types that comprise the State Financial Plan are
the General Fund, the Special Revenue Funds, the Capital Projects Funds, and the
Debt Service Funds. This fund structure adheres to accounting standards of the
Governmental Accounting Standards Board. The General Fund is the principal
operating fund of the State and is used to account for all financial
transactions, except those required to be accounted for in another fund. It is
the State's largest fund and receives almost all State taxes and other resources
not dedicated to particular purposes. In the State's 1996-97 fiscal year, the
General Fund is expected to account for approximately 47 percent of total
Governmental Funds disbursements and 71 percent of total State Funds
disbursements. General Fund moneys are also transferred to other funds,
primarily to support certain capital projects and debt service payments in other
fund types. The General Fund is projected to be balanced on a cash basis for the
1996-97 fiscal year. Total receipts and transfers from other funds are projected
to be $33.17 billion, an increase of $365 million from the prior fiscal year.
Total General Fund disbursements and transfers to other funds are projected to
be $33.12 billion, an increase of $444 million from the total in the prior
fiscal year.
General Fund Receipts
Major statutory changes adopted with the 1996-97 budget that affect 1996-97
include: tax reductions totaling $83 million, adoption of a tax amnesty program
expected to increase receipts by $110 million, and a variety of measures
increasing miscellaneous receipts by approximately $675 million.
In 1995, the State enacted a tax-reduction program designed to reduce
receipts from the personal income tax by 20 percent over three years. Prior to
1995, the tax had remained substantially unchanged since 1989 as a result of
annual deferrals of tax reductions originally enacted in 1987. The tax-reduction
program is estimated to reduce receipts by $2.3 billion in the 1996-97 fiscal
year, compared to what tax receipts would have been under the pre-1995 rate
structure. The program also includes increases in the standard deduction,
widening tax brackets to increase the income thresholds to which higher tax
rates apply, and modification of certain tax credits. The projected yield of the
personal income tax for the 1996-97 fiscal year is $17.1 billion, an increase of
$103 million from reported collections in the State's 1995-96 fiscal year. The
increase reflects both the effects of the tax reductions noted above and the
fact that reported collections in the preceding year were affected by net refund
reserve account transactions that depressed collections in 1995-96 by $500
million. The income base for the tax is projected to rise approximately 5
percent for the 1996 tax year.
User taxes and fees are comprised of three-quarters of the State 4 percent
sales and use tax (the balance, one percent, flows to support Local Government
Assistance Corporation ("LGAC") debt service requirements), cigarette, alcoholic
beverage container and auto rental taxes, and a portion of the motor fuel excise
levies. Also included in this category are receipts from the motor vehicle
registration fees and alcoholic beverage license fees. Receipts in this category
in the State's 1996-97 fiscal year are expected to total $6.73 billion, an
increase of $97 million from reported 1995-96 results. Underlying growth in the
continuing sales tax base is forecast to be 5 percent, accounting for the
increase in the category as a whole. Projected receipts in 1996-97 are adversely
affected by the full-year effects of reductions in the diesel motor fuel,
container and beer taxes adopted in 1995 and by a temporary reduction of the
sales tax on clothing enacted in 1996.
Business taxes include franchise taxes based generally on net income of
general business, bank and insurance corporations, as well as
gross-receipts-based taxes on utilities and gallonage-based petroleum business
taxes. Total business tax receipts in the State's 1996-97 fiscal year are
projected at $4.62 billion, a decline of $360 million from reported 1995-96
results. The decline results from the continuing effects of tax reductions
originally enacted in 1994 and 1995, valued at approximately $300 million more
in 1996-97 than in 1995-96, and the previously scheduled diversion of petroleum
business and other tax receipts to dedicated transportation funds
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(valued at approximately $130 million more in 1996-97 than in 1995-96). These
factors outweigh the modest growth projected in the bases of the continuing tax
structure.
Other taxes include estate, gift and real estate transfer taxes, a tax on
gains from the sale or transfer of certain real estate where the total
consideration exceeds $1 million, a pari-mutuel tax and other minor levies.
Total receipts from this category in the State's 1996-97 fiscal year are
projected at $948 million, $151 million less than in the preceding year.
Miscellaneous receipts include investment income, abandoned property
receipts, medical provider assessments, receipts from public authorities, and
certain other license and fee revenues. Receipts in this category in the State's
1996-97 fiscal year are expected to total $2.1 billion, an increase of $683
million above the amount received in the prior State fiscal year. This includes
$481 million in surplus revenues from the Medical Malpractice Insurance
Association ("MMIA"), and other various non-recurring resources. MMIA is a
statutorily-created joint underwriting association of property/casualty
insurance companies authorized to write certain personal liability insurance in
the State which provides primary and excess medical malpractice insurance for
medical service providers in the State. It has been reported that certain health
care providers are considering a challenge to the State's right to these surplus
revenues.
Transfers from other funds to the General Fund consist primarily of tax
revenues in excess of debt service requirements, particularly the one percent
sales tax used to support payments to LGAC. In the 1996-97 fiscal year, excess
sales tax revenues are projected to be $1.4 billion, $75 million more than in
the 1995-96 fiscal year. All other transfers are projected to decrease by $82
million, primarily reflecting the non-recurring transfer of $117 million from
the Mass Transportation Operating Assistance Fund to the Revenue Accumulation
fund in 1995-96. As a result, total transfers are virtually unchanged
year-to-year.
General Fund Disbursements
Grants to local governments is the largest category of General Fund
disbursements, and accounts for approximately 70 percent of overall General Fund
spending. Disbursements from this category are projected to total $23.13 billion
in the 1996-97 State Financial Plan, an increase of $597 million (2.6 percent)
from 1995-96 levels. This category of the State Financial Plan includes $11.27
billion in aid for elementary, secondary, and higher education, accounting for
49 cents of every dollar spent in this category. On a school-year basis,
formula-based elementary and secondary education aid increased $217 million from
1995-96 levels. General Fund payments for Medicaid are projected to be $5.29
billion, virtually unchanged from the level of $5.34 billion in 1995-96 and down
from $5.79 billion in 1994-95. Other social service spending is forecast to
increase by only $7 million to $3.17 billion in 1996-97, down from $3.34 billion
in 1994-95.
State operations spending reflects the administrative costs of operating
the State's agencies, including the prison system, mental hygiene institutions,
the State University system ("SUNY"), the Legislature and the court system.
Personal service costs account for approximately 76 percent of this category in
1996-97. Since January 1995, the State's workforce has been reduced by about
15,000 positions, with a decrease of 5,000 positions expected in 1996-97. State
employees will not receive a general salary increase this year as part of the
collective bargaining agreements recently negotiated for the 1995-96 through
1998-99 fiscal years. Disbursements for State operations are projected at $5.82
billion, a decrease of $135 million or 2.3 percent. The lack of growth in this
category reflects the workforce reduction program for 1996-97 that will be
accomplished primarily through attrition, a continued hiring freeze and
implementation of a retirement incentive program.
General State charges primarily reflect the costs of providing fringe
benefits for State employees, including contributions to pension systems, the
employer's share of social security contributions, employer contributions toward
the cost of health insurance and the costs of providing worker's compensation
and unemployment insurance benefits. This category also reflects certain fixed
costs such as payments in lieu of taxes and payments of judgments against the
State or its public officers. Disbursements in this category are projected to
total $2.22 billion in the 1996-97 State Financial Plan, an increase of $138
million from the 1995-96 levels.
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Debt service paid from the General Fund for 1996-97 reflects only the $10
million interest cost of the State's commercial paper program. No cost is
included for a TRAN borrowing, since none is expected to be undertaken. The
State's annual spring borrowing has been eliminated.
Transfers to other funds from the General Fund are made primarily to
finance certain portions of State capital project spending and debt service on
long-term bonds, where these costs are not funded from other sources. Transfers
are projected to total $1.94 billion, a decrease of $161 million or 7.7 percent
from 1995-96 levels. Transfers in support of capital projects decrease $210
million due to the availability of non-recurring revenues, which will be
deposited directly to the Capital Projects Funds in 1996-97, and the
reclassification of economic development programs from capital projects to
grants to local governments. Transfers in support of debt service increase $60
million, reflecting prior year bond sales for prisons, housing programs and
SUNY.
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific
revenue sources such as federal grants that are legally restricted, either by
the Legislature or outside parties, to expenditures for specified purposes.
Although activity in this fund type is expected to comprise approximately 43
percent of total government funds receipts in the 1996-97 fiscal year,
three-quarters of that activity relates to federally-funded programs.
Projected receipts in this fund type total $28.04 billion, an increase of
$2.43 billion (9.5 percent) over the prior year. Projected disbursements in this
fund type total $28.51 billion, an increase of $2.25 billion (8.6 percent) over
1995-96 levels. Disbursements from federal funds, primarily the federal share of
Medicaid and other social services programs, are projected to total $21.31
billion in the 1996-97 fiscal year. Remaining projected spending of $7.20
billion primarily reflects aid to SUNY supported by tuition and dormitory fees,
education aid funded from lottery receipts, operating aid payments to the
Metropolitan Transportation Authority funded from the proceeds of dedicated
transportation taxes, and costs of a variety of self-supporting programs which
deliver services financed by user fees.
Capital Projects Funds
Capital Projects Funds are used to account for the financial resources used
for the acquisition, construction or rehabilitation of major State capital
facilities and for capital assistance grants to certain local governments or
public authorities. This fund type consists of the Capital Projects Fund, which
is supported by tax receipts transferred from the General Fund, and 37 other
capital funds established to distinguish specific capital construction purposes
supported by other revenues. In the 1996-97 fiscal year, activity in these funds
is expected to comprise 6 percent of total governmental receipts.
Total receipts in this fund type are projected at $3.58 billion.
Disbursements from this fund type are projected to be $3.85 billion, a decrease
of $120 million (3.1 percent) over prior-year levels, due in part to a
reclassification of economic development projects to the category of grants to
local governments in the General Fund. The Dedicated Highway and Bridge Trust
Fund is the single largest dedicated fund, comprising an estimated $920 million
(24 percent) of the activity in this fund type. Total spending for capital
projects will be financed through a combination of sources: federal grants (28
percent), public authority bond proceeds (34 percent), general obligation bond
proceeds (12 percent), and pay-as-you-go revenues (26 percent).
Debt Service Funds
Debt Service Funds are used to account for the payment of principal of, and
interest on, long-term debt of the State and to meet commitments under
lease-purchase and other contractual-obligation financing arrangements. This
fund type is expected to comprise 4 percent of total governmental fund receipts
and disbursements in the 1996-97 fiscal year. Receipts in these funds in excess
of debt service requirements may be transferred to the General Fund and Special
Revenue Funds, pursuant to law.
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The Debt Service fund type consists of the General Debt Service Fund, which
is supported primarily by tax receipts transferred from the General Fund, and
other funds established to accumulate moneys for the payment of debt service. In
the 1996-97 fiscal year, total disbursements in this fund type are projected at
$2.58 billion, an increase of $164 million or 6.8 percent. The projected
transfer from the General Fund of $1.59 billion is expected to finance 62
percent of these payments.
The remaining payments are expected to be financed by pledged revenues,
including $1.83 billion in taxes, $234 million in dedicated fees, and $2.35
billion in patient revenues, including transfers of federal and State
reimbursements and State dedicated taxes. After required impoundment for debt
service, $3.7 billion is expected to be transferred to the General Fund and
other funds in support of State operations. The largest transfer -- $1.9 billion
- -- is made to the Special Revenue fund type in support of operations of the
mental hygiene agencies. Another $1.4 billion in excess sales tax is expected to
be transferred to the General Fund, following payment of projected debt service
on LGAC bonds.
Out-year Projections of Receipts and Disbursements
The 1996-97 State Financial Plan includes actions that will have an effect
on the budget outlook for State fiscal year 1996-97 and beyond. The Division of
the Budget estimates that the 1996-97 State Financial Plan contains actions that
provide non-recurring resources or savings totaling approximately $1.3 billion.
These include the use of $481 million in surplus funds available from MMIA, $134
million in savings from a refinancing of certain pension obligations, $88
million in projected savings from bond refundings, and $36 million in surplus
fund transfers. The balance is composed of $314 million in resources carried
forward from the State's 1995-96 fiscal year and various other actions,
including that portion of the proposed tax amnesty program that is projected to
be non-recurring.
The State closed projected budget gaps of $5.0 billion and $3.9 billion for
its 1995-96 and 1996-97 fiscal years, respectively. The 1997-98 gap was
projected at $1.44 billion, based on the Governor's proposed budget of December
1995. As a result of changes made in the enacted budget, that gap is now
expected to be larger. However, the gap is not expected to be as large as those
faced in the prior two fiscal years. The Governor has indicated that he will
propose to close any potential imbalance primarily through General Fund
expenditure reductions and without increases in taxes or deferrals of scheduled
tax reductions.
The out-year projection will be impacted by a variety of factors. Enacted
tax reductions, which reduced receipts in the 1996-97 fiscal year by an
incremental $2.4 billion, are projected to reduce receipts in the 1997-98 fiscal
year by an additional increment of $2.1 billion. The use of up to $1.3 billion
of non-recurring resources in 1996-97, and the annualized costs of certain
program increases in the 1996-97 enacted budget, will both add additional
pressure in closing the 1997-98 gap.
Actions undertaken in the State's 1996-97 fiscal year, such as workforce
reductions, health care and education reforms, and strict controls on State
agency spending, are expected to provide larger recurring savings in 1997-98.
Sustained growth in the State's economy and continued declines in welfare
caseload and Medicaid costs would produce additional savings in the 1997-98
State Financial Plan. Finally, future federal reforms of welfare and/or Medicaid
could potentially provide savings to the State in State fiscal year 1997-98.
Prior Fiscal Years
New York State's financial operations have improved during recent fiscal
years. During the period 1989-90 through 1991-92, the State incurred General
Fund operating deficits that were closed with receipts from the issuance of tax
and revenue anticipation notes ("TRANs"). First, the national recession, and
then the lingering economic slowdown in the New York and regional economy,
resulted in repeated shortfalls in receipts and three budget deficits. For its
1992-93, 1993-94, and 1994-95 fiscal years, the State recorded balanced budgets
on a cash basis, with substantial fund balances in 1992-93 and 1993-94, and
smaller fund balances in 1994-95 and 1995-96.
1995-1996 Fiscal Year
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In his Executive Budget, the Governor indicated that in the 1995-96 fiscal
year, the State Financial Plan, based on then-current law governing spending and
revenues, would be out of balance by almost $4.7 billion, as a result of the
projected structural deficit resulting from the ongoing disparity between
sluggish growth in receipts, the effect of prior-year tax changes, and the rapid
acceleration of spending growth; the impact of unfunded 1994-95 initiatives,
primarily for local aid programs; and the use of one-time solutions, primarily
surplus funds from the prior year, to fund recurring spending in the 1994-95
budget. The Governor proposed additional tax cuts, to spur economic growth and
provide relief for low-and middle-income tax payers, which were larger than
those ultimately adopted, and which added $240 million to the then projected
imbalance or budget gap, bringing the total to approximately $5 billion.
This gap in the 1995-96 State Financial Plan was closed through a series of
actions, mainly spending reductions and cost containment measures and certain
reestimates that are expected to be recurring, but also through the use of
one-time solutions. The State Financial Plan called for (i) nearly $1.6 billion
in savings from cost containment, disbursement reestimates, and other savings in
social welfare programs, including Medicaid, income maintenance, and various
child and family care programs; (ii) $2.2 billion in savings from State agency
actions to reduce spending on the State workforce, the SUNY and the City
University of New York ("CUNY"), mental hygiene programs, capital projects, the
prison system and fringe benefits; (iii) $300 million in savings from local
assistance reforms, including actions affecting school aid and revenue sharing
while proposing program legislations to provide relief from certain mandates
that increase local spending; (iv) over $400 million in revenue measures,
primarily a new Quick Draw Lottery game, changes to tax payment schedules, and
the sale of assets; and (v) $300 million from reestimates in receipts.
As a result of these and other efforts, the State ended its 1995-96 fiscal
year with balances in the General Fund, Special Revenue Funds and Debt Service
Funds of $287 million, $499 million and $160 million, respectively, and a
deficit of $292 million in the Capital Projects Funds.
New York State ended its 1994-95 fiscal year with the General Fund in
balance. The closing fund balance of $158 million reflects $157 million in the
Tax Stabilization Reserve Fund and $1 million in the Contingency Reserve Fund
("CRF"). Compared to the State Financial Plan for 1994-95 as formulated on June
16, 1994, reported receipts fell short of original projections by $1.163
billion, primarily in the categories of personal income and business taxes. Of
this amount, the personal income tax accounts for $800 million, reflecting weak
estimated tax collections and lower withholding due to reduced wage and salary
growth, more severe reductions in brokerage industry bonuses than projected
earlier, and deferral of capital gains realizations in anticipation of potential
Federal tax changes. Business taxes fell short by $373 million, primarily
reflecting lower payments from banks as substantial overpayments of 1993
liability depressed net collections in the 1994-95 fiscal year. These shortfalls
were offset by better performance in the remaining taxes, particularly the user
taxes and fees, which exceeded projections by $210 million. Of this amount, $227
million was attributable to certain restatements for accounting treatment
purposes pertaining to the CRF and Local Government Assistance Corporation
("LGAC"); these restatements had no impact on balance in the General Fund.
1993-94 Fiscal Year
The State ended its 1993-94 fiscal year with a balance of $1.140 billion in
the tax refund reserve account, $265 million in its Contingency Reserve Fund and
$134 million in its Tax Stabilization Reserve Fund. These fund balances were
primarily the result of an improving national economy, State employment growth,
tax collections that exceeded earlier projections and disbursements that were
below expectations. Deposits to the personal income tax refund reserve have the
effect of reducing reported personal income tax receipts in the fiscal year when
made and withdrawals from such reserve increase receipts in the fiscal year when
made. The balance in the tax refund reserve account will be used to pay taxpayer
refunds, rather than drawing from 1994-95 receipts.
1992-93 Fiscal Year
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The State ended its 1992-93 fiscal year with a balance of $671 million in
the tax refund reserve account and $67 million in the Tax Stabilization Reserve
Fund. The State's 1992-93 fiscal year was characterized by performance that was
better than projected for the national and regional economies. National gross
domestic product, State personal income, and State employment and unemployment
performed better than originally projected in April 1992. This favorable
economic performance, particularly at year end, combined with a tax-induced
acceleration of income into 1992, was the primary cause of the General Fund
surplus. Personal income tax collections were more than $700 million higher than
originally projected (before reflecting the tax refund reserve account
transaction), primarily in the withholding and estimated payment components of
the tax. There were, however, large and mainly offsetting variances in other
categories of receipts.
Certain Litigation
Certain litigation pending against New York or its officers or employees
could have a substantial or long-term adverse effect on New York finances. Among
the more significant of these cases are those that involve: (i) the validity of
agreements and treaties by which various Indian tribes transferred to New York
title to certain land in New York; (ii) certain aspects of New York's Medicaid
rates and regulations, including reimbursements to providers of mandatory and
optional Medicaid services, and the eligibility for and nature of home care
services; (iii) challenges to provisions of Section 2807-C of the Public Health
Law, which impose a 13% surcharge on inpatient hospital bills paid by commercial
insurers and employee welfare benefit plans and portions of Chapter 55 of the
laws of 1992, which require hospitals to impose and remit to the State an 11%
surcharge on hospital bills paid by commercial insurers and which require health
maintenance organizations to remit to the State a surcharge of up to 9%; (iv) an
action against the State of New York and City officials alleging that the
present level of shelter allowance for public assistance recipients is
inadequate under statutory standards to maintain proper housing; (v) challenges
to the practice of reimbursing certain Office of Mental Health patient care
expenses from the client's Social Security benefits; (vi) alleged responsibility
of New York officials to assist in remedying racial segregation in the public
schools in the City of Yonkers; (vii) an action seeking reimbursement from the
State for certain costs arising out of the provision of preschool services and
programs for children with handicapping conditions; and (viii) a claim that the
State's Department of Environmental Conservation prevented the completion of a
cogeneration facility by the projected date by failing to provide data in a
timely manner and that the plaintiff thereby suffered damages. In addition,
aspects of petroleum business taxes are the subject of administrative claims and
litigation.
Similarly, certain litigation which by itself did not produce a material
judgment against the State could have an adverse impact on the State Financial
Plan because of the precedential nature of the court's decision. Specifically,
the State Court of Appeals has denied a motion to appeal a lower court decision
in the so-called "GTE Spacenet" case, in which the court ruled the GTE Spacenet
was not subject to the 3.5 percent tax on gross receipts imposed under section
186-a of the tax law. The court decision is limited to provisions of section
186-a as it existed prior to 1995 amendments, and has little prospective effect.
While this litigation in and of itself carries only a small judgment in favor of
GTE Spacenet and similar companies, the consequences of the ruling could
eventually entail refunds to other taxpayers of several hundred million dollars.
Refund claims of over $300 million have been filed which, with interest and
assuming a similar exposure for open years for which claims have yet to be
filed, could approach $600 million in potential claims.
The City of New York
The fiscal health of the State may also be affected by the fiscal health of
the City, which continues to require significant financial assistance from the
State. The State could also be affected by the ability of the City to market its
securities successfully in the public credit markets.
In response to the City's fiscal crisis in 1975, the State took action to
assist the City in returning to fiscal stability. Among those actions, the State
established NYC MAC to provide financing assistance to the City; the New York
State Financial Control Board (the "Control Board") to oversee the City's
financial affairs; and the Office of the State Deputy Comptroller for the City
of New York ("OSDC") to assist the Control Board in exercising its powers and
responsibilities. A "Control Period" existed from 1975 to 1986 during which the
City
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was subject to certain statutorily-prescribed fiscal controls. Although the
Control Board terminated the Control Period in 1986 when certain statutory
conditions were met and suspended certain Control Board powers, upon the
occurrence or "substantial likelihood and imminence" of the occurrence of
certain events, including (but not limited to) a City operating budget deficit
of more than $100 million or impaired access to the public credit markets, the
Control Board is required by law to reimpose a Control Period.
Currently, the City and its Covered Organizations (i.e., those which
receive or may receive moneys from the City directly, indirectly or
contingently) operate under a four-year financial plan (the "Financial Plan")
which the City prepares annually and periodically updates. Implementation of the
Financial Plan is dependent upon the ability of the City and certain Covered
Organizations to market their securities successfully. The City issues
securities to finance, refinance and rehabilitate infrastructure and other
capital needs, as well as for seasonal financing needs. The City currently
projects that if no action is taken, it will exceed its State Constitutional
general debt limit beginning in City fiscal year 1998. The current Financial
Plan includes certain alternative methods of financing a portion of the City's
capital program which require State or other outside approval. Future
developments concerning the City or its Covered Organizations, and public
discussion of such developments, as well as prevailing market conditions and
securities credit ratings, may affect the ability or cost to sell securities
issued by the City or such Covered Organizations and may also affect the market
for their outstanding securities.
The staffs of the Control Board, OSDC and the City Comptroller issue
periodic reports on the City's Financial Plans which analyze the City's
forecasts of revenues and expenditures, cash flow, and debt service requirements
for, and Financial Plan compliance by, the City and its Covered Organizations.
According to recent staff reports, the City's economy has experienced weak
employment and moderate wage and income growth throughout the mid-1990s.
Although this trend is expected to continue for the rest of the decade, there is
the risk of a slowdown in the City's economy in the next few years, which would
depress revenue growth and put further strains on the City's budget. These
reports have also indicated that recent City budgets have been balanced in part
through the use of non-recurring resources; that the City's Financial Plan tends
to rely on actions outside its direct control; that the City has not yet brought
its long-term expenditure growth in line with recurring revenue growth; and that
the City is therefore likely to continue to face substantial future budget gaps
that must be closed with reduced expenditures and/or increased revenues.
Other Localities
Certain localities outside the City have experienced financial problems and
have requested and received additional State assistance during the last several
State fiscal years. The potential impact on the State of any future requests by
localities for additional assistance is not included in the projections of the
State's receipts and disbursements for the State's 1996-97 fiscal year.
Fiscal difficulties experienced by the City of Yonkers resulted in the
re-establishment of the Financial Control Board for the City of Yonkers by the
State in 1984. That Board is charged with oversight of the fiscal affairs of
Yonkers. Future actions taken by the State to assist Yonkers could result in
increased State expenditures for extraordinary local assistance.
Beginning in 1990, the City of Troy experienced a series of budgetary
deficits that resulted in the establishment of a Supervisory Board for the City
of Troy in 1994. The Supervisory Board's powers were increased in 1995, when
Troy MAC was created to help Troy avoid default on certain obligations. The
legislation creating Troy MAC prohibits the City of Troy from seeking federal
bankruptcy protection while Troy MAC bonds are outstanding.
Seventeen municipalities received extraordinary assistance during the 1996
legislative session through $50 million in special appropriations targeted for
distressed cities.
From time to time, federal expenditure reductions could reduce, or in some
cases, eliminate, federal funding of some local programs, and accordingly might
impose substantial increased expenditure requirements on
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affected localities. If the State, the City or any of the public authorities
were to suffer serious financial difficulties jeopardizing their respective
access to the public credit markets, the marketability of notes and bonds issued
by localities within the State could be adversely affected. Localities also face
anticipated and potential problems resulting from certain pending litigation,
judicial decisions and long-range economic trends. Long-range potential problems
of declining urban population, increasing expenditures and other economic trends
could adversely affect localities and require increasing State assistance in the
future.
Authorities
The fiscal stability of the State is related, in part, to the fiscal
stability of its public authorities. Public authorities are not subject to the
constitutional restrictions on the incurrence of debt which apply to the State
itself and may issue bonds and notes within the amounts, and as otherwise
restricted by, their legislative authorization. As of September 30, 1994, there
were 18 public authorities that had aggregate outstanding debt of $70.3 billion.
Some authorities also receive moneys from State appropriations to pay for the
operating costs of certain of their programs.
The Metropolitan Transit Authority (the "MTA"), which receives the bulk of
the appropriated moneys from the State, oversees the operation of the City's bus
and subway system by its affiliates, the New York City Transit Authority and
Manhattan and Bronx Surface Transit Operating Authority (collectively, the
"TA"). The MTA operates certain commuter rail and bus services in the New York
Metropolitan area through MTA's subsidiaries, the Long Island Rail Road Company,
the Metro-North Commuter Railroad Company, and the Metropolitan Suburban Bus
Authority. In addition, the Staten Island Rapid Transit Operating Authority, an
MTA subsidiary, operates a rapid transit line on Staten Island. Through its
affiliated agency, the Triborough Bridge and Tunnel Authority (the "TBTA"), the
MTA operates certain intrastate toll bridges and tunnels. Because fare revenues
are not sufficient to finance the mass transit portion of these operations, the
MTA has depended, and will continue to depend, for operating support upon a
system of State, local government and TBTA support, and, to the extent
available, federal operating assistance, including loans, grants and subsidies.
If current revenue projections are not realized and/or operating expenses exceed
current projections, the TA or commuter railroads may be required to seek
additional State assistance, raise fares or take other actions.
Since 1980, the State has enacted several taxes-including a surcharge on
the profits of banks, insurance corporations and general business corporations
doing business in the 12-county Metropolitan Transportation Region served by the
MTA and a special one-quarter of 1 percent regional sales and use tax-that
provide revenues for mass transit purposes, including assistance to the MTA.
Since 1987 State laws has required that the proceeds of a one-quarter of 1
percent mortgage recording tax paid on certain mortgages in the Metropolitan
Transportation Region be deposited in a special MTA fund for operating or
capital expenses. In 1993, the State dedicated a portion of certain additional
State petroleum business tax receipts to fund operating or capital assistance to
the MTA. For the 1997-97 State fiscal year, total State assistance to the MTA is
estimated at approximately $1.09 billion.
State legislation accompanying the 1996-97 adopted State budget authorized
the MTA, TBTA and TA to issue an aggregate of $6.5 billion in bonds to finance a
portion of a new $11.98 billion MTA capital plan for the 1995 through 1999
calendar years (the "1995-99 Capital Program"), and authorized the MTA to submit
the 1995-99 Capital Program to the Capital Program Review Board for approval.
This plan will supersede the overlapping portion of the MTA's 1992-96 Capital
Program. This is the fourth capital plan since the Legislature authorized
procedures for the adoption, approval and amendment of MTA capital programs and
is designed to upgrade the performance of the MTA's transportation systems by
investing in new rolling stock, maintaining replacement schedules for existing
assets and bringing the MTA system into a state of good repair. The 1995-99
Capital Program assumes the issuance of an estimated $5.1 billion in bonds under
this $6.5 billion aggregate bonding authority. The remainder of the plan is
projected to be financed through assistance from the State, the Federal
Government, and the City, and from various other revenues generated from actions
taken by the MTA.
There can be no assurance that all the necessary governmental actions for
the 1995-99 Capital Program or future capital programs will be taken, that
funding sources currently identified will not be decreased or
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eliminated, or that the 1995-99 Capital Program, or parts thereof, will not be
delayed or reduced. Should funding levels fall below current projections, the
MTA would have to revise its 1995-99 Capital Program accordingly. If the 1995-99
Capital Program is delayed or reduced, ridership and fare revenues may decline,
which could, among other things, impair the MTA's ability to meets its operating
expenses without additional assistance.
Special Factors Affecting the Ohio Municipal Series
As described in the Prospectus under "Ohio Taxes" and except to the extent
investments are in temporary investments, the Ohio Municipal Series will invest
most of its net assets in securities issued by or on behalf of (or in
certificates of participation in lease-purchase obligations of) the State of
Ohio, political subdivisions of the State, or agencies or instrumentalities of
the State or its political subdivisions (Ohio Obligations). The Ohio Municipal
Series is therefore susceptible to general or particular economic, political or
regulatory factors that may affect issuers of Ohio Obligations. The following
information constitutes only a brief summary of some of the many complex factors
that may have an effect. The information does not apply to "conduit" obligations
on which the public issuer itself has no financial responsibility. This
information is derived from official statements of certain Ohio issuers
published in connection with their issuance of securities and from other
publicly available information, and is believed to be accurate. No independent
verification has been made of any of the following information.
Generally, the creditworthiness of Ohio Obligations of local issuers is
unrelated to that of obligations of the State itself, and the State has no
responsibility to make payments on those local obligations.
There may be specific factors that at particular times apply in connection
with investment in particular Ohio Obligations or in those obligations of
particular Ohio issuers. It is possible that the investment may be in particular
Ohio Obligations, or in those of particular issuers, as to which those factors
apply. However, the information below is intended only as a general summary, and
is not intended as a discussion of any specific factors that may affect any
particular obligation or issuer.
General. Ohio is the seventh most populous state. The 1990 Census count of
10,847,000 indicated a 0.5% population increase from 1980. The Census estimate
for 1995 is 11,157,000.
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While diversifying more into the service and other non-manufacturing areas,
the Ohio economy continues to rely in part on durable goods manufacturing
largely concentrated in motor vehicles and equipment, steel, rubber products and
household appliances. As a result, general economic activity, as in many other
industrially-developed states, tends to be more cyclical than in some other
states and in the nation as a whole. Agriculture is an important segment of the
economy, with over half the State's area devoted to farming and approximately
16% of total employment in agribusiness.
In prior years, the State's overall unemployment rate was commonly somewhat
higher than the national figure. For example, the reported 1990 average monthly
State rate was 5.7%, compared to the 5.5% national figure. However, for the last
six years the State rates were below the national rates (4.8% versus 5.6% in
1995). The unemployment rate and its effects vary among geographic areas of the
State.
There can be no assurance that future national, regional or state-wide
economic difficulties, and the resulting impact on State or local government
finances generally, will not adversely affect the market value of Ohio
Obligations held in the Ohio Municipal Series or the ability of particular
obligors to make timely payments of debt service on (or lease payments relating
to) those Obligations.
State Finances. The State operates on the basis of a fiscal biennium for
its appropriations and expenditures, and is precluded by law from ending its
July 1 to June 30 fiscal year (FY) or fiscal biennium in a deficit position.
Most State operations are financed through the General Revenue Fund (GRF), for
which the personal income and sales-use taxes are the major sources. Growth and
depletion of GRF ending fund balances show a consistent pattern related to
national economic conditions, with the ending FY balance reduced during less
favorable and increased during more favorable economic periods. The State has
well-established procedures for, and has timely taken, necessary actions to
ensure resource/expenditure balances during less favorable economic periods.
Those procedures included general and selected reductions in appropriations
spending.
Key biennium-ending fund balances at June 30, 1989 were $475.1 million in
the GRF and $353 million in the Budget Stabilization Fund (BSF, a cash and
budgetary management fund). June 30, 1991 ending fund balances were $135.3
million (GRF) and $300 million (BSF).
The next biennium, 1992-93, presented significant challenges to state
finances, successfully addressed. To allow time to resolve certain budget
differences, an interim appropriations act was enacted effective July 1, 1991;
it included GRF debt service and lease rental appropriations for the entire
biennium, while continuing most other appropriations for a month. Pursuant to
the general appropriations act for the entire biennium passed on July 11, 1991,
$200 million was transferred from the BSF to the GRF in FY 1992.
Based on updated results and forecasts in the course of that FY. both in
light of a continuing uncertain nationwide economic situation, there was
projected and then timely addressed, an FY 1992 imbalance in GRF resources and
expenditures. In response, the Governor ordered most State agencies to reduce
GRF spending in the last six months of FY 1992 by a total of approximately $184
million; the $100.4 million BSF balance, and additional amounts from certain
other funds, were transferred late in the FY to the GRF; and adjustments were
made in the timing of certain tax payments.
A significant GRF shortfall (approximately $520 million) was then projected
for FY 1993. It was addressed by appropriate legislative and administrative
actions, including the Governor's ordering $300 million in selected GRF spending
reductions and subsequent executive and legislative action (a combination of tax
revisions and additional spending reductions). The June 30, 1993 ending GRF fund
balance was approximately $111 million, of which, as a first step to BSF
replenishment, $21 million was deposited in the BSF.
None of the spending reductions were applied to appropriations needed for
debt service or lease rentals relating to any State obligations.
The 1994-95 biennium presented a more affirmative financial picture. Based
on June 30, 1994 balances, an additional $260 million was deposited in the BSF.
The biennium ended June 30, 1995 with a GRF ending fund balance of $928 million,
of which $535.2 million was transferred into the BSF (which had an October 7,
1996 balance of over $828 million).
The GRF Appropriations Act for the 1996-97 biennium was passed on June 28,
1995 and signed (after selective vetoes) by the Governor. All necessary GRF
appropriations for State debt service and lease rental payments then projected
for the biennium were included in that act. In accordance with the
appropriations act, the significant June 30, 1995 GRF fund Balance, after
leaving in the GRF an unreserved and undesignated balance of $70 million, was
transferred to the BSF and
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other Funds including school assistance funds and, in anticipation of possible
federal program changes, a human services stabilization fund.
Debt. The State's incurrence or assumption of debt without a vote of the
people is, with limited exceptions, prohibited by current State constitutional
provisions. The State may incur debt, limited in amount to $750,000, to cover
casual deficits or failures in revenues or to meet expenses not otherwise
provided for. The Constitution expressly precludes the State from assuming the
debts of any local government or corporation. (An exception is made in both
cases for any debt incurred to repel invasion, suppress insurrection or defend
the State in war.)
By 14 constitutional amendments, approved from 1921 to date (the latest
adopted in 1995) Ohio voters authorized the incurrence of State debt and the
pledge of taxes or excises to its payment. At November 4, 1996, $838 million
(excluding certain highway bonds payable primarily from highway use receipts) of
this debt was outstanding. The only such State debt at that date still
authorized to be incurred were portions of the highway bonds, and the following:
(a) up to $100 million of obligations for coal research and development may be
outstanding at any one time ($34.9 million outstanding); (b) $240 million of
obligations previously authorized for local infrastructure improvements, no more
than $120 million of which may be issued in any calendar year ($759 million
outstanding); and (c) up to $200 million in general obligation bonds for parks,
recreation and natural resources purposes which may be outstanding at any one
time ($44.2 million and outstanding, with no more than $50 million to be issued
in any one year.
The electors in 1995 approved a constitutional amendment extending the
local infrastructure bond program (authorizing an additional $1.2 billion of
State full faith and credit obligations to be issued over 10 years for the
purpose), and authorizing additional highway bonds (expected to be payable
primarily from highway use receipts). The latter supersedes the prior $500
million outstanding authorization, and authorizes not more than $1.2 billion to
be outstanding at any time and not more than $220 million to be issued in a
fiscal year.
The Constitution also authorizes the issuance of State obligations for
certain purposes, the owners of which do not have the right to have excises or
taxes levied to pay debt service. Those special obligations include obligations
issued by the Ohio Public Facilities Commission and the Ohio Building Authority,
and certain obligations issued by the State Treasurer, over $4.5 billion were
outstanding or sold and awaiting delivery at November 4, 1996.
A 1990 constitutional amendment authorizes greater State and political
subdivision participation (including financing) in the provision of housing. The
General Assembly may for that purpose authorize the issuance of State
obligations secured by a pledge of all or such portion as it authorizes of State
revenues or receipts (but not by a pledge of the State's full faith and credit).
A 1994 constitutional amendment pledges the full faith and credit and
taxing power of the State to meeting certain guarantees under the State's
tuition credit program which provides for purchase of tuition credits, for the
benefit of State residents, guaranteed to cover a specified amount when applied
to the cost of higher education tuition. (A 1965 constitutional provision that
authorized student loan guarantees payable from available State moneys has never
been implemented, apart from a "guarantee fund" approach funded essentially from
program revenues).
State and local agencies issue obligations that are payable from revenues
from or relating to certain facilities (but not from taxes). By judicial
interpretation, these obligations are not "debt" within constitutional
provisions. In general, payment obligations under lease-purchase agreements of
Ohio public agencies (in which certificates of participation may be issued) are
limited in duration to the agency's fiscal period, and are renewable only upon
appropriations being made available for the subsequent fiscal period.
Debt Rating. State tax-supported bonds are currently rated (uninsured) "Aa1
by Moody's and "AA+" by both S&P (AAA in the case of highway bonds) and Fitch,
and outstanding uninsured State bonds issued by the Ohio Public Facilities
Commissions and Ohio Building Authority are rated "A1" by Moody's and "AA-" by
both S&P and Fitch.
Schools and Municipalities. Local school districts in Ohio receive a major
portion (state-wide aggregate approximately 44% in recent years) of their
operating moneys from State subsidies, but are dependent on local property
taxes, and in approximately 120 districts from voter-authorized income taxes,
for significant portions of their budgets. Litigation, similar to that in other
states, is pending questioning the constitutionality of Ohio's system of school
funding. The trial court concluded that aspects of the system (including basic
operating assistance) are unconstitutional, and ordered the State to provide for
and fund a system complying with the Ohio Constitution. The State appealed and a
court of appeals reversed the trial court's findings for plaintiff districts.
The case is now pending on appeal in the Ohio Supreme Court. A small number
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of the State's 612 local school districts have in any year required special
assistance to avoid year-end deficits. A current program provides for school
district cash need borrowing directly from commercial lenders, with diversion of
State subsidy distributions to repayment if needed. Recent borrowings under this
program totaled $94.5 million for 27 districts (including $75 million for one)
in FY 1993, and $41.1 million for 28 districts in FY 1994, $71.1 million for 29
districts in FY 1995 (including $29.5 million for one), and $87.2 million for 20
districts in FY 1996 (including $42.1 million for one).
Ohio's 943 incorporated cities and villages rely primarily on property and
municipal income taxes for their operations. With other subdivisions, they also
receive local government support and property tax relief moneys distributed by
the State.
For those few municipalities and school districts that on occasion have
faced significant financial problems, there are statutory procedures for a joint
State/local commission to monitor the fiscal affairs and for development of a
financial plan to eliminate deficits and cure any defaults. Since inception for
municipalities in 1979, these procedures have been applied to 24 cities and
villages; for 19 of them the fiscal situation was resolved and the procedures
terminated. The 1996 school district "fiscal emergency" provision has been
applied to two districts, and five districts have been placed on preliminary
"fiscal watch" status.
Property Taxes. At present the State itself does not levy ad valorem taxes
on real or tangible personal property. Those taxes are levied by political
subdivisions and other local taxing districts. The Constitution has since 1934
limited to 1% of true value in money the amount of the aggregate levy (including
a levy for unvoted general obligations) of property taxes by all overlapping
subdivisions, without a vote of the electors or a municipal charter provision,
and statutes limit the amount of that aggregate levy to 10 mills per $1 of
assessed valuation (commonly referred to as the "ten-mill limitation"). Voted
general obligations of subdivisions are payable from property taxes that are
unlimited as to amount or rate.
Litigation. According to recent State official statements, the State is a
party to various legal proceedings seeking damages or injunctive or other relief
and generally incidental to its operations. The ultimate disposition of those
proceedings is not determinable.
Special Factors Effecting the Oregon Tax-Exempt Series
The following information is a summary of special factors affecting the
Oregon Tax-Exempt Series (the "Oregon Series"). It does not purport to be a
complete description and is based in part on (i) the December 1996 Oregon
Economic and Revenue Forecast prepared by the Oregon Department of
Administrative Services, and (ii) a November 14, 1996 Official Statement
prepared by the State of Oregon Housing and Community Services Department and
the Oregon State Treasury for the issue of two State of Oregon general
obligation bonds.
ECONOMIC FORECAST
Short-Term Outlook
Similar to the nation as a whole, economic growth in Oregon is likely to be
restricted to its long-term trend rate by near capacity labor markets and rising
costs. Oregon's jobless rate is unlikely to fall below its current 5.0 percent
for any sustained period. This will have the effect of limiting job growth to
the rate of increase in the state's labor force. The labor force is expected to
increase sufficiently to keep Oregon's employment growth well above the national
average but not enough to match the job growth rates of the 1994 to 1996 period.
The state's tight labor markets and expanding high technology industries should
continue to push Oregon's wages and per capita income up toward the national
average.
Oregon's personal income is forecast to increase 6.3 percent in 1997, down
from an estimated 7.9 percent in 1996 but still well above the national forecast
of 5.0 percent growth. Non-farm payroll employment is expected to increase 2.9
percent in 1997, more than double the projected national rate of job growth.
With the state's overall labor market near full capacity, job expansion
will become increasingly dependent on labor force growth. While the 18 to 24
year old segment of the population is expected to grow over the next five years,
the key to labor force expansion is the rate of net migration. Oregon
experienced rapid net in-migration over the 1990 to 1995 period averaging 40,700
per year. The state continues to be attractive to in-migrants, offering low
unemployment and rising relative wages. Moreover, California's unemployment rate
remains 2 percent above Oregon's rate. These factors should keep Oregon's
population growth well above the national average.
Despite the attraction of Oregon's strong economy, the rate of net
in-migration is likely to slow for two reasons. First, California is well into
an economic recovery with job growth above the national average. This has
already slowed movement into
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Oregon. The net number of driver's licenses surrendered by Californians moving
to Oregon versus Oregonians moving to California, averaged 15,769 over the 1992
to 1995 fiscal years. For fiscal year 1995-96, the net number of licenses
surrendered dropped to 7,790. This trend can be expected to continue. A second
factor is Oregon's rising home prices. Oregon's conventional home repeat price
index increased 9.3 percent per year over the 1990 to 1995 period, the second
fastest growth rate among the states. Home prices are estimated to increase 8.9
percent in 1996, followed by a 7.9 percent projected increase in 1997. These
increases are making Oregon a relatively more expensive place to live. This will
have the effect of reducing the state's attractiveness to some potential
in-migrants.
The state's tight labor markets are expected to continue pushing Oregon's
wages toward the national average. Manufacturing wages grew an estimated 6.3
percent in 1996 while private service wages increased 5.6 percent. In 1997,
manufacturing wages are projected to increase another 4.3 percent while private
service wages rise 4.4 percent. Oregon's annual wages have increased from 89.8
percent of the national average in 1993 to 92.9 percent in 1995. They are
forecast to rise to 94.5 percent in 1997. Wage growth is a key factor
stimulating demand and retail sales in Oregon but it also is a growing concern
among Oregon businesses because higher wages mean higher costs.
It is the expanding high technology manufacturing sector that has been the
catalyst for the state's rapid growth over the 1994 to 1996 period. Though
slowing, high tech should continue to be the driving force behind growth in the
region stretching from the Portland Metropolitan area through Salem and
Corvallis to Eugene. High tech manufacturers are expected to add 2,300 jobs in
1997 with the overwhelming majority of them occurring in this region.
The rest of the state will benefit from a generally healthy agriculture
sector (with the exception of the cattle industry), a stabilizing timber harvest
and increasing cost advantages relative to the Willamette Valley and Portland
metropolitan area. The statewide timber harvest is expected to be 4.2 billion
board feet in 1997, matching the estimate for 1996. Although the harvest is not
expected to show further significant declines, it is forecast to remain at
extremely low levels relative to the post World War II norm. Lumber and wood
products jobs are forecast to decline only 1.4 percent in 1997 after decreasing
an estimated 3.1 percent in 1996.
Personal Income Components
The major components of personal income are expected to grow more slowly in
1997 with the exception of dividend, interest and rent income and transfer
payments. Non-farm proprietor income is forecast to increase 4.3 percent in
1997, down from an estimated 6.2 percent in 1996. Farm proprietor income is
projected to drop 12 percent in 1997 after jumping 29.8 percent in 1995 and 41
percent in 1996. Wage and salary income is expected to increase 6.9 percent in
1997, after growing more than 9 percent in both 1995 and 1996.
The forecast of rising short-term interest rates pushes up dividend,
interest and rent income 7.6 percent in 1997, compared to an estimated 5.2
percent growth rate in 1996. Transfer payments are projected to increase 5.7
percent in 1997, up 0.2 percent from the 1996 estimate.
Goods-Producing Sectors
Construction employment is expected to show less growth in 1997 though it
is likely to remain at a high level of activity. After adding jobs at a double
digit rate each year from 1994 to 1996, construction industry employers are
forecast to expand payroll jobs only 4.1 percent in 1997. Housing starts are
forecast to drop 13.6 percent. While the forecast of 22,100 is below the housing
start level for 1994 through 1996, it is above every year between 1979 and 1994.
Overall manufacturing employment is forecast to increase 0.3 percent in
1997 after averaging 3.0 percent growth for the 1994 to 1996 period. The
expanding high tech sector is likely to make it increasingly difficult for other
manufacturers to find skilled labor at wages consistent with their competitive
position. Metals employment is expected to decline 0.7 percent while
transportation equipment manufacturing job growth drops from 4.0 percent in 1996
to 1.1 percent in 1997. Nondurable goods manufacturers are projected to reduce
employment 1.3 percent in 1997, in line with the estimated 1996 decrease.
Mining employment is forecast to inch up 0.8 percent after jumping 10.2
percent in 1996.
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Service-Producing Sectors
The state's service-producing sectors are expected to continue growing but
they too are likely to be constrained by labor availability. Jobs in the state's
largest sector - non-health services, are expected to grow 5.7 percent, down
from 8.1 percent in 1996. A similar slowing trend is also expected for retail
and wholesale trade which are projected to increase 2.6 and 3.8 percent in 1997,
respectively. Health service employment is forecast to rise 3.4 percent while
financial service jobs are projected to expand 2.3 percent. Job growth rates of
2.1 percent in transportation services and 1.4 percent in communications and
utilities are anticipated in 1997.
The government sector in Oregon is forecast to continue shrinking relative
to the overall economy. Overall government jobs are projected to increase 1.7
percent in 1997, marking the sixth consecutive year in which public sector jobs
have grown more slowly than private sector jobs. Federal government employment
is expected to decline for the fifth year in a row, dipping 1.7 percent. State
government jobs are projected to increase 2.8 percent while local government
jobs (which include tribal employment) increase 1.9 percent.
Forecast Risks
The single best predictor of short-term movements in Oregon's economy is
shifts in the national economy. This means that an overheated national economy
followed by recession is the most visible risk to Oregon's economy over the next
year. An interest rate induced recession would hit the state's credit sensitive
durable goods manufacturing industries such as electronics, timber, metals, and
transportation equipment. The state is now particularly vulnerable to swings in
semiconductor (a component of the electronics industry) production.
Extended Outlook
Oregon's overall job and income growth rates are expected to fall back
toward the national average as rising costs gradually reduce the state's
competitive position. However, Oregon's growth is forecast to continue exceeding
the national average over the next seven years, though the gap is likely to
narrow considerably. The state is expected to move up near the national average
in per capita income and wages by the end of the forecast horizon in 2003.
Jobs and income in the state are expected to grow more slowly than they did
in the previous eight year interval but much faster than the 1979 to 1987
period. Employment is projected to increase 19.8 percent between 1995 and 2003,
while inflation-adjusted personal income rises 27.8 percent. The state's
population is expected to increase 12.7 percent over the next eight years.
<TABLE>
<CAPTION>
Long-Term Oregon Forecast
(Percentage Change)
- ------------------------------------------------------------------------------------------------------
History Forecast
1979-87 1987-95 1995-2003
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Non-farm Payroll Employment 4.1 29.4 19.8
Personal Income 5.0 36.8 27.8
(Inflation Adjusted)
Per Capita Income 0.9 17.5 13.4
(Inflation Adjusted)
Population 4.1 16.4 12.7
- ------------------------------------------------------------------------------------------------------
</TABLE>
By 2003, Oregon's per capita income and wages are expected to be at their
highest level relative to the nation as a whole since 1980. Oregon's per capita
income in 2003 is projected to be $31,085, an increase of $9,168 since 1995.
This would bring the state to within 2.3 percent of the projected national
average. The key factor pushing up Oregon's relative per capita income is
relative wages. Oregon's annual wage rate is forecast to rise from 92.9 percent
of the U. S. average in 1995 to 97.4 percent in 2003.
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Oregon's relative wage rate is being driven by the state's changing
industry mix. The rapid growth of the electronics industry which has payroll per
worker well above the manufacturing average is a major factor contributing to
the change. Electronics employment is expected to increase from 12.2 percent of
manufacturing jobs in 1995 to 18.1 percent in 2003.
Another factor contributing to the state's relative wage growth is tight
labor markets. This is expected to continue with Oregon's non-farm wage and
salary jobs rising from 46.3 percent of the state's population in 1996 to 48.1
percent in 2003. This ratio for the nation is projected to increase from 44.9
percent in 1996 to 46.0 percent in 2003.
LITIGATION
The following summary of litigation relates to matters as to which the
State of Oregon is a party and as to which the State of Oregon has indicated
that the individual claims against the State exceed $10 million. Other
litigation may exist with respect to individual municipal issuers as to which
the State of Oregon is not a party, but which, if decided adversely, could have
a materially adverse effect on the financial condition of the individual
municipal issuer.
Liberty Mutual Insurance Co. v. State of Oregon
In 1993, several out-of-State insurance companies filed an action
challenging Oregon's gross premium tax on out-of-State insurers. The plaintiffs
alleged that the tax violates the Equal Protection Clause of the Fourteenth
Amendment to the United States Constitution because the tax treats domestic and
"foreign" insurers differently. The plaintiffs sought (i) a declaration that the
Oregon gross premium tax law was unconstitutional, (ii) refunds of all premium
taxes paid from 1982 to date, and (iii) the recovery of their attorney fees. Two
other related cases have been filed since 1993, Pacific Mutual Health and Life
Insurance Co. v. DCBS and DCBS v. Stewart Title Guaranty Corp. If claims were
brought by all affected foreign insurers, the possible refund liability exposure
would probably exceed $30 million. In hearings before the 1993 Oregon
Legislative Assembly concerning the gross premium tax laws, the estimates of the
State's potential refund liability in such a case ranged from $27.4 million to
$174.6 million.
However, the 1995 Oregon Legislative Assembly passed HB 2855 which
equalizes the taxation of foreign and domestic insurers by eliminating the
premium tax on foreign insurers and requiring both foreign and domestic insurers
to pay a corporate excise tax. Liberty Mutual and Pacific Mutual have dismissed
their cases due to the passage of HB 2855. Stewart Title has refused to drop its
counter-claim on the equal protection issue. If the Stewart Title case proceeds
to trial on the equal protection issue, and if Stewart prevails, it could open
the door to recovery by other insurers who are not a party to the present action
and who have not allowed the case to be dismissed against them with prejudice.
In that event, the potential refund liability of the State could amount to
several million dollars per year for each year that must be refunded. On
February 20, 1996, the Court ruled in favor of the State on all issues except
the years for which a retaliatory tax could be imposed, with the result that the
State will be unable to collect approximately $750,000. No judgment has been
entered in the case. The parties are pursuing settlement negotiations to arrive
at a consent decree.
Alsea Veneer, Inc. et al v. State of Oregon, et al;
ABC Roofing Co., Inc., et al, v. State of Oregon, et al
Two companion class actions were filed in September 1988 by Workers'
Compensation policyholders insured by the State Accident Insurance Fund
Corporation ("SAIF"). The plaintiffs sought damages based on the Oregon
Legislative Assembly's 1983 transfer of $81 million in surplus reserves from the
Industrial Accident Fund to the State general fund under Oregon Laws 1982
(Special Session 3), chapter 2. Because both cases were brought on behalf of the
same class of employer-policyholders, the combined maximum claims in both cases
could not exceed $81 million, plus interest and attorney fees.
On November 19, 1993, the Oregon Supreme Court issued an opinion ruling
against the State and holding that the State must return to the Industrial
Accident Fund the $81 million that the legislature transferred to the general
fund. The Supreme Court remanded the case to the trial court to fashion a decree
based on evidence of what SAIF would have done with the money if the money had
been available to SAIF.
On remand, the trial court ordered the State to return the $81 million to
SAIF, with interest at the rate Industrial Accident Fund investments have earned
since July 1, 1982. Initial estimates indicated that the amount of principal and
interest owing under the court's ruling would be approximately $280 million.
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In its 1995 session, the Legislative Assembly appropriated $60 million to
the Industrial Accident Fund. To date, the State has repaid $65 million of the
$81 million principal amount. The State has not yet paid any of the interest
obligation. The parties drafted a proposed settlement agreement which the court
approved on February 28, 1996. Under the agreement, the State is obligated to
pay a total of $225 million. Of that amount, $65 million has been paid, $80
million will be payable at the end of the 1997 legislative session, and an
additional $80 million will be payable at the end of the 1999 legislative
session. If the State fails to appropriate the required amounts, the State will
be in breach of the agreement and subject to additional court action from the
plaintiffs.
Taxation of State Retiree Pension Benefits
Class action certification has been granted in an action filed against the
State and other public entities regarding the taxation of Oregon Public
Employees Retirement System benefits. The plaintiff class consists of Public
Employees Retirement System (PERS) members who have separated from service with
their PERS employer. The defendant class is composed of all employers
participating in PERS. The plaintiffs seek enforcement of the Oregon Supreme
Court's decision in Hughes v. State. In Hughes, the court ruled that a statutory
amendment repealing a tax exemption for retirement benefits violated the
constitutional provision against impairment of contract for benefits received
from work performed prior to the date of the amendment. The court left it up to
the Oregon Legislative Assembly to fashion a remedy. The legislature failed to
provide a remedy in its 1993 session. Plaintiffs seek to require public
employers to pay breach of contract damages or increase benefits due to taxation
of previously untaxed pensions.
The 1995 Legislative Assembly passed HB 3349 which provides a remedy to the
PERS beneficiaries. The bill increases the benefits paid to PERS members as
compensation for damages resulting from the taxation of the PERS benefits and
prohibits any class action suit for damages based upon such taxation. The claims
of the PERS beneficiaries are effectively rendered moot by the legislation. The
fiscal impact statement submitted with HB 3349 indicated that the state agencies
will be obligated to pay approximately $27 million in the 1995-97 biennium and
approximately $36 million in the 1997-99 biennium in increased employer
contributions to fund the benefits increase. Of those amounts, only about
one-third are paid out of the general fund.
Local governments have asserted defenses based upon breach of contract
theories and also seek indemnification from the State for any amounts the local
governments must pay toward a remedy. The passage of HB 3349 does not moot the
claims of local governments. If the local governments are successful, liability
would be imposed directly on the State general fund for the amount of increased
benefits that the local governments must pay as a result of HB 3349. The amount
of liability imposed on the State as a result of the local governments' claims
is uncertain. The fiscal impact statements prepared for HB 3349 indicated that
the total increase in contribution that must be paid by local governments,
community colleges and school districts is approximately $44 million for the
1995-97 biennium and $72 million for the 1997-99 biennium, with costs in
subsequent biennia not yet estimated. The trial court ruled against the State on
the breach of contract issues. Plaintiffs, and others, challenged the adequacy
of HB 3349 as a remedy and also sought review and clarification of portions of
the bill.
On the State's motion for reconsideration, the circuit court invalidated HB
3349 and enjoined the payment of increased benefits to PERS retirees under HB
3349 that was scheduled to begin in January 1996. However, on appeal the Oregon
Supreme Court upheld the constitutionality of HB 3349 and ruled that the State
must cover the benefits increase for State employees but need not indemnify or
reimburse the local governments for payments made to plaintiffs or the
retirement fund as a result to HB 3349. The exact measure of damages and the
adequacy of HB 3349 as a remedy are still to be decided by the trial court.
Taxation of Federal Retiree Pension Benefits
Several cases have been filed in the Oregon Tax Court and the State Circuit
Courts challenging whether a 1991 increase in PERS benefits, to offset State
taxation of the PERS benefits, violates a holding by the United States Supreme
Court in Davis v. Michigan Dept. of Treasury. The Davis case holds that state
statutes may not provide disparate tax treatment of state and federal pension
benefits. At this time it is too early to estimate the potential impact of
liability under these cases to the State general fund. However, the Oregon
Supreme Court upheld a ruling by the Oregon Tax Court in one of the cases,
Ragsdale v. Dept. of Revenue, that the increase in PERS benefits did not violate
the Davis holding and is constitutional. Plaintiffs filed a petition for review
with the U.S. Supreme Court of the Oregon Supreme Court's decision. The U.S.
Supreme Court denied review in the Ragsdale case and in a related case, Atkins
v. Department of Revenue.
Suits involving the same plaintiffs and issues have also been filed in the
State Circuit Court and in the Tax Court on behalf of a group of federal
retirees seeking refunds of taxes paid to the State. One case has been stayed in
Circuit Court. The Tax Court ruled in favor of the State, but plaintiffs have
appealed to the Oregon Supreme Court. It is too early to estimate the
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potential liability of the State in these cases. The plaintiffs are also
challenging the provisions of HB 3349 on the same theory as their challenge to
the 1991 benefits increase.
An additional case filed in Multnomah County challenges the PERS benefits
increase on the same grounds that the court ruled against in the Ragsdale case.
It also seeks to find HB 3349 invalid as a diversion of PERS funds. The court
ruled in favor of the State and the plaintiff has appealed to the Oregon Supreme
Court.
Challenge to Initiative Measure Savings
As the result of the passage of Ballot Measure 8 (the "Measure") in the
1994 general election, the State of Oregon could have realized potential savings
exceeding $100 million per year in amounts the State would not have been
required to contribute to PERS. Under the Measure, the State no longer would
have had to make contributions (i) to cover increased benefits due to the
inclusion of accrued sick leave in the benefit calculation or (ii) to "pick up"
employees' mandatory six percent contribution to the retirement system. The
Measure also would have prohibited PERS from providing any guaranteed rate of
return on pension funds.
On June 21, 1996, the Oregon Supreme Court held the Measure invalid on the
ground that the Measure's reductions in retirement benefits constituted
impairments of the contractual rights of public employees, thereby violating the
"Contracts Clause," Article 1, Section 10, clause 1, of the United States
Constitution. Oregon State Police Officers' Association v. State of Oregon. On
August 28, 1996, the State announced that it will not request the United States
Supreme Court to review the Oregon Supreme Court's decision. Because the public
employees in the case were successful, the savings to the State that would have
resulted from the Measure will not occur.
Challenge to Oregon Health Plan
Matthews v. Horne
A class action suit has been filed in federal court seeking to add certain
Medicare beneficiaries, consisting of disabled and elderly persons, to the
groups of persons covered by the Oregon Health Plan (the "Plan"). Under the Plan
certain groups of low income persons are provided specified medical services, as
well as dental care, eye care and prescription benefits. The plaintiff class is
eligible for medical care under the federal Medicare program, but not for the
additional services offered by the Oregon Health Plan. If plaintiffs were
successful, early estimates indicated that it would cost an additional $30
million per biennium to operate the Plan. The State general fund would be
obligated to pay $11 million of the total cost and the federal government would
pay the balance. However, it is possible that if the cost of operating the Plan
increased by such an amount, the Legislative Assembly would discontinue the Plan
entirely. The court ruled in favor of the State on its motion for summary
judgment and dismissal. The court granted the State's motion. The plaintiffs
sought review of the magistrate's decision by a district court judge. The judge
upheld the magistrate's decision. The plaintiffs have filed an appeal with the
US Court of Appeals for the Ninth Circuit.
Bibeau v. Pacific NW Research
This is a federal court class action suit that has been brought on behalf
of inmates and their families for injuries the inmates sustained in radiation
experiments to which the inmates were subjected in the 1960s and 1970s. The
former head of medical services for the Oregon State Police is named as one of
the defendants in the suit. The plaintiffs seek $250 million in damages;
although it is unlikely that they will recover the full amount sought, it is too
early to provide an accurate measure of the damages which plaintiffs may
reasonably recover at this stage of the case. The State has tendered its defense
to the insurance company that provided coverage to the State in the relevant
time frame. Defenses based on statutes of limitation and ultimate repose were
asserted on behalf of the State. The court has ruled against the State on this
motion. It is possible that a potential recovery could exceed the State's
applicable insurance limits.
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Kinross Copper Corp. v. State
An inverse condemnation case has been filed against the State which
involves the denial of a permit by the State's Environmental Quality Commission
("EQC"). The Kinross Copper Corporation acquired land for the purpose of mining
copper. As part of the mining operations, the company intended to dig a huge pit
for which a waste water discharge permit is required. The EQC denied the
company's request for a permit based upon an administrative rule that prohibits
the issuance of a waste water discharge permit in the area where the copper mine
would be located because of the area's proximity to a river that supplies
drinking water for the city of Salem, Oregon and other communities. The company
alleges a "taking" by the state of the company's property and damages of $32
million as the amount of money it would have earned if the company had been
granted a permit and allowed to operate a mine. The State intends to ask the
court to dismiss the case because the administrative rule was in effect at the
time the company purchased its property. Therefore, the company bought the
property subject to the administrative rule and there can be no "taking". While
it is too early in the case to realistically estimate the State's exposure, the
State believes there is only a remote possibility that the plaintiff will
prevail and receive any damages based upon the EQC's denial of the permit.
Pro Se Cases
There are also several pro se cases on the docket in which plaintiffs
representing themselves are suing the State for many millions of dollars. The
State believes that the possibility of it having to pay anything in any of these
cases is negligible.
RECENT LEGISLATIVE ACTION
The 1995 Legislative Assembly passed a balanced budget, as required by the
Oregon Constitution for the 1995-97 fiscal biennium. To complete their work, the
Legislative Assembly met in Regular Session until June 10,1995. The Regular
Session focused upon maintenance of existing services and implementation of
recently passed (November 8, 1994) Ballot Measures, and no new programs were
created.
Under Article V, Section 12 of the Oregon Constitution, the Governor called
the Legislative Assembly into Special Session on July 28, 1995 to consider
passage of a state "match" of federal money for expansion of the light-rail
transportation system in the Portland Metropolitan area. The Special Session
adjourned sine die on August 4,1995 after passing a bill that included not only
light-rail funding, but also funding of transportation systems in rural areas of
the state and other actions. Portions of the light-rail funding bill were
invalidated, however, by the Oregon Supreme Court's January 16, 1996 decision of
Mcintire v. Forbes on the grounds that the funding legislation violated Article
IV, Section 20 of the Oregon Constitution, which requires that legislative acts
must address only one subject and "matters properly connected therewith." The
court held that the light-rail funding bill addressed multiple subjects and was
therefore unconstitutional. The Governor called the Legislative Assembly into a
second special session on February 1, 1996, mainly to consider matters affecting
light-rail funding and the Community Corrections Act. The Legislative Assembly
again passed the light-rail funding package, with terms substantially identical
to those approved in the July 1995 special session. The package was divided into
individual bills, however, to prevent violation of the "single subject" rule.
With respect to the Community Corrections Act, the Legislative Assembly again
approved the Community Corrections Program model for financing expanded capacity
for State felony offenders. In addition, the Legislative Assembly made several
changes to the Community Corrections Act, including, but not limited to (i)
increasing by $41 million the amount allocated to the State for financing County
Corrections Projects through issuance of State certificates of participation,
(ii) allowing counties to enter into intergovernmental agreements to seek State
funding for County Corrections Projects, and (iii) extending the deadline by
which counties must submit funding requests until June 30, 1999.
MAY 1996 REFERENDUM
The Legislative Assembly referred to Oregon voters a proposed
constitutional amendment ("Measure 25"), which was placed on the ballot for the
May 21, 1996 Oregon primary election. Having received a majority of yes votes,
Measure 25 amended Article IV, section 25 of the Oregon Constitution to require
the approval of three-fifths of the members of each house of the Legislative
Assembly, rather than a simple majority, to pass bills for raising revenue.
Measure 25 does not attempt to define characteristics of a "revenue bill,"
but Oregon law generally has interpreted this category to mean tax and possibly
fee legislation. Therefore, Measure 25 could make more difficult the passage of
future bills for raising moneys to fund State operations and programs. However,
the State is unable to predict exactly what fiscal impact it might have.
59
<PAGE>
INITIATIVE MEASURES APPEARING ON THE NOVEMBER 1996 GENERAL ELECTION BALLOT
Sixteen initiative measures appeared on the November 5, 1996 general
election ballot in Oregon. Two of these measures might have affected state and
local government finances in Oregon. Only one of the measures was approved by a
majority of the voters in the election.
Measure 47
Measure 47 amends the Oregon Constitution to reduce the ad valorem property
tax on each property to the lesser of: (1) the tax on the same property for the
tax year ending June 30, 1996 reduced by ten percent; or (2) the tax on the same
property for the tax year ending June 30, 1995. Additionally, under Measure 47,
the property tax on each property cannot exceed the previous year's tax on the
property plus three percent.
Measure 47 contains exemptions from its tax reduction requirement and tax
increase limit. The tax reduction does not apply to that portion of property
taxes levied to pay principal and interest on bonded indebtedness. That portion
of property taxes levied to pay principal and interest on bonded indebtedness
likewise is exempt from the three percent annual ceiling on property tax
increases.
Measure 47 prohibits the use of fees or assessments to pay for government
services that were funded from property tax receipts prior to the measure. The
measure also expressly authorizes the Legislative Assembly to enact legislation
to carry out the measure. It directs the legislature, if the measure makes it
necessary to allocate revenue reductions among political subdivisions of the
State, or departments or agencies within these subdivisions, to redistribute
revenue in a manner that gives priority to public safety and education and
minimizes loss of local control of cities and counties to State government.
Measure 47 directly affects only units of local government that levy and
collect ad valorem property taxes. The State of Oregon does not use or rely on
ad valorem property taxes to generate moneys for the State General Fund, relying
instead primarily on the state income tax. Measure 47 permits but does not
require that local revenue reductions be replaced with State income taxes.
Prior to the election, the Oregon Legislative Revenue Office estimated that
Measure 47 would reduce the property taxes collected by local government taxing
units by $467 million in the 1997-98 tax year, a reduction of 17 percent from
what they otherwise would collect. The reduction for tax years 1998-99 would be
$553 million, or 19.1 percent. These estimates are based on certain assumptions
that may or may not hold true. However, the reduction in revenues available to
local government could generate efforts to seek replacement funding for local
governments from State income taxes and the State General Fund.
At the November 5, 1996 General Election Measure 47 passed. The Amendment
is effective December 5, 1996.
LEVEL OF GENERAL OBLIGATION BOND INDEBTEDNESS
As of September 1, 1996, the total amount outstanding on all of the State
of Oregon's general obligation bonds was approximately $3.64 billion, including
approximately $2.78 billion of Veteran's Welfare Bonds.
VALUE OF REVENUE BONDS AFFECTED BY ECONOMY
Although revenue obligations of Oregon or its political subdivisions may be
payable from a specific project or source, including lease rentals, there can be
no assurance that economic difficulties, with the resulting effect on state and
local governmental finances, will not adversely affect the market value of
municipal obligations held in the portfolio of Seligman Tax-Exempt Fund Series,
Inc. (the "Fund") or the ability of the respective obligors to make required
payments on such obligations.
SMALL ACTIVE MARKET
There is a relatively small active market for municipal bonds of Oregon
issuers other than the general obligation bonds of the State itself, and the
market price of such bonds may, therefore, be volatile. If the Fund were forced
to sell a large volume of these bonds for any reason, such as redemptions of a
large number of its shares, the large sale itself might adversely affect the
value of the Oregon Series' portfolio.
Special Factors Affecting the South Carolina Municipal Series
60
<PAGE>
The State of South Carolina has the power to issue general obligation bonds
based on the full faith and credit of the State. Political subdivisions are also
empowered to issue general obligation bonds, which are backed only by the full
faith and credit of that political subdivision, and not by the resources of the
State of South Carolina or any other political subdivision. Political
subdivisions are empowered to levy ad valorem property taxes on real property
and certain personal property to raise funds for the payment of general
obligation bonds. General obligation debt may be incurred only for a public
purpose which is also a corporate purpose of the applicable political
subdivision.
Under Article X of the Constitution of the State of South Carolina, the
State may issue general obligation debt without either a referendum or a
supermajority of the General Assembly, within limits defined by reference to
anticipated sources of revenue for bonds issued for particular purposes. A
referendum or supermajority of the General Assembly may authorize additional
general obligation debt. Article X further requires the levy and collection of
an ad valorem tax if debt service payments on general obligation debt are not
made. Under Article X of the Constitution of the State of South Carolina,
political subdivisions are empowered to issue aggregate general obligation
indebtedness up to 8% of the assessed value of taxable property within the
political subdivision (exclusive of debt incurred before the effective date of
Article X with respect to such subdivisions) without a referendum. A referendum
may authorize additional general obligation debt. The ordinance or resolution
authorizing bonded debt of a political subdivision also directs the levy and
collection of ad valorem taxes to pay the debt. In addition, Article X of the
South Carolina Constitution provides for withholding by the State Treasurer of
any state appropriations to a political subdivision which has failed to make
punctual payment of general obligation bonds. Such withheld appropriations, to
the extent available, may be applied to the bonded debt. Political subdivisions
are not generally authorized to assess income taxes, or to pledge any form of
tax other than ad valorem property taxes, for the payment of general obligation
bonds. Certain political subdivisions have been authorized to impose a
limited-duration 1% sales tax to defray the debt service on general obligation
bonds.
Industrial development bonds and other forms of revenue bonds issued by the
State or a political subdivision are not secured by the full faith and credit of
the State or the issuing entity. Such bonds are payable only from revenues
derived from a specific facility or revenue source.
The State of South Carolina has not defaulted on its bonded debt since
1879. The State did, however, experience certain budgeting difficulties over
several recent fiscal years through June 30, 1993, resulting in mid-year
cutbacks in funding of state agencies in those years. The State had budget
surpluses at fiscal year end June 30, 1994, June 30, 1995 and June 30, 1996.
Such difficulties have not to date impacted on the State's ability to pay its
indebtedness but did result in S&P lowering its rating on South Carolina general
obligation bonds from AAA to AA+ on January 29, 1993. S&P restored the AAA
rating on South Carolina's general obligation bonds on July 9, 1996. South
Carolina's general obligation bonds are rated Aaa by Moody's. Such ratings apply
only to the general obligation bonded indebtedness of the State, and do not
apply to bonds issued by political subdivisions or to revenue bonds not backed
by the full faith and credit of the State.
61
<PAGE>
APPENDIX C
HISTORY OF J. & W. SELIGMAN & CO. INCORPORATED
Seligman's beginnings date back to 1837, when Joseph Seligman, the oldest
of eight brothers, arrived in the United States from Germany. He earned his
living as a pack peddler in Pennsylvania, and began sending for his brothers.
The Seligmans became successful merchants, establishing businesses in the South
and East.
Backed by nearly thirty years of business success - culminating in the sale
of government securities to help finance the Civil War - Joseph Seligman, with
his brothers, established the international banking and investment firm of J. &
W. Seligman & Co. In the years that followed, the Seligman Complex played a
major role in the geographical expansion and industrial development of the
United States.
The Seligman Complex:
...Prior to 1900
o Helps finance America's fledgling railroads through underwritings.
o Is admitted to the New York Stock Exchange in 1869. Seligman remained a
member of the NYSE until 1993, when the evolution of its business made it
unnecessary.
o Becomes a prominent underwriter of corporate securities, including New York
Mutual Gas Light Company, later part of Consolidated Edison.
o Provides financial assistance to Mary Todd Lincoln and urges the Senate to
award her a pension.
o Is appointed U.S. Navy fiscal agent by President Grant.
o Becomes a leader in raising capital for America's industrial and urban
development.
...1900-1910
o Helps Congress finance the building of the Panama Canal.
...1910s
o Participates in raising billions for Great Britain, France and Italy,
helping to finance World War I.
...1920s
o Participates in hundreds of successful underwritings including those for
some of the Country's largest companies: Briggs Manufacturing, Dodge
Brothers, General Motors, Minneapolis-Honeywell Regulatory Company, Maytag
Company, United Artists Theater Circuit and Victor Talking Machine Company.
o Forms Tri-Continental Corporation in 1929, today the nation's largest,
diversified closed-end equity investment company, with over $2 billion in
assets and one of its oldest.
...1930s
o Assumes management of Broad Street Investing Co. Inc., its first mutual
fund, today known as Seligman Common Stock Fund, Inc.
o Establishes Investment Advisory Service.
...1940s
o Helps shape the Investment Company Act of 1940.
o Leads in the purchase and subsequent sale to the public of Newport News
Shipbuilding and Dry Dock Company, a prototype transaction for the
investment banking industry.
o Assumes management of National Investors Corporation, today Seligman Growth
Fund, Inc.
o Establishes Whitehall Fund, Inc., today Seligman Income Fund, Inc.
62
<PAGE>
...1950-1989
o Develops new open-end investment companies. Today, manages more than 40
mutual fund portfolios.
o Helps pioneer state-specific, municipal bond funds, today managing a
national and 18 state-specific municipal funds.
o Establishes J. & W. Seligman Trust Company and J. & W. Seligman Valuations
Corporation.
o Establishes Seligman Portfolios, Inc., an investment vehicle offered
through variable annuity products.
...1990s
o Introduces Seligman Select Municipal Fund, Inc. and Seligman Quality
Municipal Fund, Inc. two closed-end funds that invest in high quality
municipal bonds.
o In 1991 establishes a joint venture with Henderson Administration Group
plc, of London, known as Seligman Henderson Co., to offer global investment
products.
o Introduces to the public Seligman Frontier Fund, Inc., a small
capitalization mutual fund.
o Launches Seligman Henderson Global Fund Series, Inc., which today offers
five separate series: Seligman Henderson International Fund, Seligman
Henderson Global Smaller Companies Fund, Seligman Henderson Global
Technology Fund, Seligman Henderson Global Growth Opportunities Fund and
Seligman Henderson Emerging Markets Growth Fund.
63
<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 MUNICIPAL FUND SERIES, INC., WHICH CONTAINS INFORMATION ABOUT THE SALES
CHARGES, MANAGEMENT FEES, AND OTHER COSTS. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
TEA2 9/96
- --------------------------------------------------------------------------------
13TH ANNUAL REPORT
- --------------------------------------------------------------------------------
SELIGMAN
MUNICIPAL
FUND
SERIES, INC.
- --------------------------------------------------------------------------------
SEPTEMBER 30, 1996
[LOGO]
- --------------------------------------------------------------------------------
PROVIDING INCOME
FREE FROM REGULAR INCOME TAX
SINCE 1983
<PAGE>
================================================================================
TO THE SHAREHOLDER
- --------------------------------------------------------------------------------
We are pleased to update you on the National and 12 state-specific portfolios of
Seligman Municipal Fund Series, Inc. at their fiscal year-end, September 30,
1996.
After reducing interest rates twice in 1995, and again in January 1996, the
Federal Reserve Board left rates unchanged for the next eight months. The
economy's rate of growth, which slowed in the fourth quarter of 1995, bounced
back in the second quarter of 1996. It continued to grow at a healthy pace all
year with virtually no inflationary repercussions. Reports issued in September
supported this view, showing continued increases in production, new home sales,
wages, and spending.
With the lowest unemployment rate since June 1990, strong personal incomes,
interest rates far below their 1980s levels, and few signs of inflationary
pressure, consumer confidence as measured by The Conference Board rose 25% above
its January 1996 level.
In the municipal bond market, interest rates began to decline in the third
quarter of 1995 and continued to do so until February 1996. However, as the
economy picked up steam late in the first quarter of this year, and continued to
grow in the second quarter, municipal market sentiment turned from enthusiasm to
concern regarding inflation. For the last six months, every Fed meeting was
under intense scrutiny by market participants. The inability of municipal bond
investors to gauge the future direction of rates exaggerated their response to
each economic report, with municipal bond yields drifting up or down in response
to the latest data.
On September 24, the Fed decided to maintain the current fed funds rate.
Once the decision was announced, long-term municipal bond yields, as measured by
the Bond Buyer 20-Bond General Obligation Index, declined slightly and ended the
quarter at 5.76%. The unchanged monetary policy somewhat stabilized the
municipal bond market by the end of the Fund's fourth quarter.
Going forward, we foresee continued, albeit moderate, economic growth and a
benign level of inflation. This environment of modest growth, combined with
relatively stable interest rates, should be beneficial for financial markets in
the months ahead. As always, there could be short-term volatility, but we remain
confident in the long-term outlook.
As we near the end of the year, we encourage you to review your overall
investment portfolio. When doing so, you may wish to consult your financial
advisor to discuss financial issues such as tax planning, and to ensure that you
are following the best investment strategy to help you seek your financial
goals.
At the SPECIAL MEETING OF SHAREHOLDERS, held on September 30, 1996, a
proposal was passed permitting the Fund to invest any portion of its net assets
in securities subject to the federal alternative minimum tax. Consequently, your
Fund's name was changed to Seligman Municipal Fund Series, Inc., and the word
"Municipal" will replace the words "Tax-Exempt" in each Series within the Fund.
For specific results of the SPECIAL MEETING OF SHAREHOLDERS, please refer to
page 61.
A discussion with your Portfolio Manager about your Fund, along with
highlights of performance, long-term investment results, portfolio holdings, and
financial statements, follows this letter.
We thank you for your continued interest in Seligman Municipal Fund Series,
and look forward to serving your investment needs in the 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
October 30, 1996
1
<PAGE>
================================================================================
SELIGMAN MUNICIPAL FUND SERIES, INC.
- --------------------------------------------------------------------------------
HIGHLIGHTS September 30, 1996
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
MASSA-
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND CHUSETTS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $ 98.8 $ 52.3 $ 51.0 $ 57.3 $ 54.0 $ 109.9
Class D 4.8 0.3 2.3 0.4 2.0 1.4
- ------------------------------------------------------------------------------------------------------------------------------------
YIELD*
Class A 4.92% 4.39% 4.75% 4.63% 4.59% 4.83%
Class D 4.24 3.69 4.09 3.97 3.91 4.17
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS**
Class A $ 0.399 $ 0.371 0.388 $ 0.422 $ 0.404 $ 0.411
Class D 0.328 0.305 0.317 0.347 0.331 0.339
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS** -- -- $ 0.054 $ 0.062 $ 0.034 $ 0.107
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
September 30, 1996
Class A $ 7.70 $ 7.27 $ 7.87 $ 8.16 $ 7.99 $ 7.85
Class D 7.70 7.27 7.88 8.16 7.99 7.84
September 30, 1995
Class A 7.58 7.30 7.81 8.14 7.96 7.91
Class D 7.57 7.29 7.82 8.14 7.97 7.90
- ------------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
PER SHARE
September 30, 1996
Class A $ 8.08 $ 7.63 $ 8.26 $ 8.57 $ 8.39 $ 8.24
Class D 7.70 7.27 7.88 8.16 7.99 7.84
September 30, 1995
Class A 7.96 7.66 8.20 8.55 8.36 8.30
Class D 7.57 7.29 7.82 8.14 7.97 7.90
- ------------------------------------------------------------------------------------------------------------------------------------
MOODY'S/S&P RATINGS+
Aaa/AAA 17% 48% 40% 85% 37% 49%
Aa/AA 54 36 32 7 38 19
A/A 23 11 22 6 23 24
Baa/BBB 4 4 6 2 2 8
Non-rated 2 1 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
HOLDINGS BY MARKET SECTOR+
Revenue Bonds 86% 78% 67% 79% 65% 82%
General Obligation Bonds 14 22 33 21 35 18
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY
(Years) 26.3 18.8 20.4 18.9 19.9 21.2
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Current yield representing the annualized yield for the 30-day period ended
September 30, 1996.
** Represents per share amount paid or declared with respect to Class A and
Class D shares during the year ended September 30, 1996.
+ Percentages based on current market values of long-term holdings.
2
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
SOUTH
MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO OREGON CAROLINA
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $ 148.2 $ 126.2 $ 49.9 $ 82.7 $ 162.2 $ 57.3 $ 108.2
Class D 1.5 2.0 0.6 1.2 1.0 1.5 2.7
- ------------------------------------------------------------------------------------------------------------------------------------
YIELD*
Class A 4.77% 4.26% 4.35% 4.88% 4.65% 4.45% 4.60%
Class D 4.11 3.57 3.68 4.22 3.98 3.78 3.94
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS**
Class A $ 0.448$ 0.423 $ 0.387 $ 0.417 $ 0.432 $ 0.397$ 0.414
Class D 0.371 0.353 0.318 0.345 0.361 0.328 0.341
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS** $ 0.143$ 0.020 $ 0.073 -- $ 0.038 $ 0.008$ 0.018
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
September 30, 1996
Class A $ 8.46 $ 7.68 $ 7.71 $ 7.98 $ 8.09 $ 7.65 $ 8.07
Class D 8.45 7.68 7.72 7.98 8.13 7.64 8.06
September 30, 1995
Class A 8.54 7.82 7.70 7.86 8.11 7.66 7.97
Class D 8.54 7.82 7.70 7.87 8.15 7.65 7.97
- ------------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
PER SHARE
September 30, 1996
Class A $ 8.88 $ 8.06 $ 8.09 $ 8.38 $ 8.49 $ 8.03 $ 8.47
Class D 8.45 7.68 7.72 7.98 8.13 7.64 8.06
September 30, 1995
Class A 8.97 8.21 8.08 8.25 8.51 8.04 8.37
Class D 8.54 7.82 7.70 7.87 8.15 7.65 7.97
- ------------------------------------------------------------------------------------------------------------------------------------
MOODY'S/S&P RATINGS+
Aaa/AAA 51% 41% 41% 53% 70% 38% 66%
Aa/AA 20 35 41 11 15 24 12
A/A 25 20 18 22 10 25 21
Baa/BBB 4 -- -- 14 2 5 1
Non-rated 2 4 -- -- 3 8 --
- ------------------------------------------------------------------------------------------------------------------------------------
HOLDINGS BY MARKET SECTOR+
Revenue Bonds 82% 47% 82% 97% 74% 59% 87%
General Obligation Bonds 18 53 18 3 26 41 13
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE MATURITY
(Years) 21.2 16.3 17.5 26.0 19.0 18.4 20
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: The yields have been computed in accordance with current SEC regulations
and will vary, and the principal value of an investment will fluctuate. Shares,
if redeemed, may be worth more or less than their original cost. National
Series' income and a small portion of each State Series' income may be subject
to applicable state and local taxes. A portion of each Series' income dividends
may be subject to the federal alternative minimum tax. Past performance is not
indicative of future investment results.
3
<PAGE>
================================================================================
ANNUAL PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
The following is a discussion with your Portfolio Manager regarding Seligman
Municipal Fund Series, Inc., and a chart and table comparing each Series'
performance to the performance of the Lehman Brothers Municipal Bond Index.
YOUR PORTFOLIO MANAGER
- -------------------------
[PHOTO]
- -------------------------
THOMAS G. MOLES is a Managing Director of J. & W. Seligman & Co. Incorporated,
Vice President and Portfolio Manager of Seligman Municipal Fund Series, Inc. and
the other Seligman municipal mutual funds which include 19 separate portfolios,
and President and Portfolio Manager of Seligman Select Municipal Fund and
Seligman Quality Municipal Fund. He is responsible for more than $2 billion in
municipal securities. Mr. Moles, with more than 25 years of experience, has
spearheaded Seligman's municipal investment efforts since joining the firm in
1983.
WHAT ECONOMIC FACTORS AFFECTED SELIGMAN MUNICIPAL FUND SERIES OVER THE PAST 12
MONTHS?
Throughout the fourth quarter of 1995, the majority of market participants
believed that the economy was growing at a moderate pace and that inflation
remained under control. This bullish outlook caused long-term interest rates to
decline steadily during the fourth quarter of 1995 and into the new year. By
February 1996, however, the economy began to exhibit signs of unexpected
strength and interest rates rose sharply on renewed inflation concerns. Since
then, economic data has been mixed, suggesting weakness in some areas and vigor
in others. Given these conflicting economic reports, market participants have
been unable to form a consensus with respect to the economy. As a result, each
new economic release has led to an amplified shift in interest rates.
On September 24, the Federal Reserve Board stated that it had not seen
sufficient evidence of an acceleration in inflation to warrant an increase in
the fed funds rate. The Fed's decision to hold monetary policy steady helped
stabilize the bond market and prompted a modest decline in long-term yields.
Further, by September 30, 1996, long-term municipal yields, as measured by the
Bond Buyer 20-Bond General Obligation Index, stood at 5.76%, down from 6.00% a
year ago.
WHAT MARKET FACTORS INFLUENCED THE FUND OVER THE PAST 12 MONTHS?
In the municipal bond market, year-to-date new issue supply has increased only
marginally over 1995 levels. However, demand, in particular retail demand, has
been strong, resulting in shortages of certain types of municipal bonds. The
supply imbalance pushed buyers to bid up prices to obtain the specific bonds
they required, which caused a compression of yield spreads, or a narrowing of
yield differentials, within the various sectors of the municipal market. For
example, hospital bonds typically trade at higher yields than similarly rated
general obligation bonds, due to their complexity. This year, many typically
higher-yielding issues such as hospital bonds have been trading at or near
general obligation levels. This market aberration provided us an opportunity to
improve the relative value of the portfolios.
4
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
WHAT WAS YOUR INVESTMENT STRATEGY IN THE PAST 12 MONTHS?
We believe that the economy is expanding at an acceptable rate of growth and
that inflation remains in check. Therefore, we have been comfortable purchasing
long-term municipal bonds in spite of the market's frequent ups and downs.
Yields on long-term municipal bonds are significantly higher than yields on
short-term municipal securities. For that reason, short-term positions were kept
to a minimum.
Further, to better protect the net asset values of the Fund's Series during
periods of rising interest rates, we concentrated new acquisitions in current
coupon bonds rather than in discount or zero coupon bonds, as the prices of
discount and zero coupon bonds are more vulnerable to rising interest rates.
Though we primarily focus on our long-term goals rather than short-term gains,
we continuously search for ways to improve the relative value of the Fund by
taking advantage of aberrations and inefficiencies within the municipal
marketplace.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Thus far, 1996 has been a challenging year for fixed-income investors. The
debate within the municipal markets over the strength of the economy most likely
will continue to influence the direction of interest rates in the short term.
Our team, however, takes a long-term, conservative approach to managing your
Fund. We believe municipal bond funds will continue to play an important role in
helping investors meet their long-term financial goals, and we remain committed
to maintaining diversified portfolios of quality municipal bonds while providing
our Shareholders with competitive yields.
5
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES
- --------------------------------------------------------------------------------
The following charts compare a $10,000 hypothetical investment made in each
Series of Seligman Municipal Fund Series Class A shares, with and without the
maximum initial sales charge of 4.75%, for the 10-year or since-inception (where
applicable) periods ended September 30, 1996, to a $10,000 hypothetical
investment made in the Lehman Brothers Municipal Bond Index (Lehman Index) for
the same periods. The performance of each Series of Seligman Municipal Fund
Series Class D shares is not shown in the charts but is included in the table
below each chart. It is important to keep in mind that the Lehman Index does not
include any fees or sales charges, and does not reflect state-specific bond
market performance.
SELIGMAN NATIONAL MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN NATIONAL MUNICIPAL SERIES CLASS A
LEHMAN BROS.
WITH WITHOUT MUNICIPAL BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............... $ 9,528.09 $ 10,000.00 $ 10,000.00
12/31/86 .............. $ 9,915.79 $ 10,406.89 $ 10,346.00
3/31/87 ............... $ 10,265.11 $ 10,773.50 $ 10,596.37
6/30/87 ............... $ 9,683.28 $ 10,162.85 $ 10,309.21
9/30/87 ............... $ 9,302.34 $ 9,763.05 $ 10,052.51
12/31/87 .............. $ 9,774.75 $ 10,258.85 $ 10,501.86
3/31/88 ............... $ 10,045.66 $ 10,543.19 $ 10,863.12
6/30/88 ............... $ 10,416.15 $ 10,932.03 $ 11,356.24
12/31/88 .............. $ 11,135.46 $ 11,686.98 $ 11,566.34
3/31/89 ............... $ 11,238.83 $ 11,795.46 $ 11,642.67
6/30/89 ............... $ 11,911.28 $ 12,501.21 $ 12,331.92
9/30/89 ............... $ 11,764.04 $ 12,346.68 $ 12,340.55
12/31/89 .............. $ 12,229.02 $ 12,834.68 $ 12,872.09
6/18/90 ............... $ 12,465.94 $ 13,083.35 $ 13,173.30
9/30/90 ............... $ 12,246.51 $ 12,853.05 $ 13,181.20
12/31/90 .............. $ 12,940.57 $ 13,581.50 $ 13,749.31
3/31/91 ............... $ 13,164.21 $ 13,816.22 $ 14,060.05
6/30/91 ............... $ 13,443.24 $ 14,109.08 $ 14,359.53
9/30/91 ............... $ 13,990.13 $ 14,683.05 $ 14,918.11
12/31/91 .............. $ 14,425.26 $ 15,139.74 $ 15,419.36
3/31/92 ............... $ 14,390.28 $ 15,103.03 $ 15,465.62
6/30/92 ............... $ 14,964.14 $ 15,705.32 $ 16,053.31
9/30/92 ............... $ 15,226.90 $ 15,981.08 $ 16,478.73
12/31/92 .............. $ 15,562.42 $ 16,333.22 $ 16,778.64
3/31/93 ............... $ 16,350.58 $ 17,160.42 $ 17,401.13
6/30/93 ............... $ 16,991.22 $ 17,832.79 $ 17,970.14
9/30/93 ............... $ 17,663.80 $ 18,538.69 $ 18,577.54
12/31/93 .............. $ 17,756.13 $ 18,635.59 $ 18,837.62
3/31/94 ............... $ 16,299.82 $ 17,107.15 $ 17,803.44
6/30/94 ............... $ 16,398.49 $ 17,210.70 $ 18,001.05
9/30/94 ............... $ 16,281.59 $ 17,088.02 $ 18,123.46
12/31/94 .............. $ 15,989.75 $ 16,781.73 $ 17,862.48
3/31/95 ............... $ 17,308.69 $ 18,165.99 $ 19,125.36
6/30/95 ............... $ 17,751.48 $ 18,630.72 $ 19,586.28
9/30/95 ............... $ 18,150.50 $ 19,049.51 $ 20,150.37
12/31/95 .............. $ 19,204.14 $ 20,155.35 $ 20,980.56
3/31/96 ............... $ 18,787.59 $ 19,718.17 $ 20,726.70
6/30/96 ............... $ 18,914.67 $ 19,851.54 $ 20,886.29
9/30/96 ............... $ 19,415.38 $ 20,377.05 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman National Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman National Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman National
Municipal Series
Class A with Sales Charge 1.86% 5.75% 6.86%
Class A without Sales Charge 6.97 6.77 7.38
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman National
Municipal Series
Class D with CDSL 5.13% n/a
Class D without CDSL 6.13 1.95%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
6
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN COLORADO MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN COLORADO MUNICIPAL SERIES CLASS A
LEHMAN BROS.
MUNICIPAL BOND
WITH WITHOUT INDEX
SALES CHARGE SALES CHARGE (SERIES A)
------------ ------------ -----------
9/30/86 .............. $ 9,528.30 $ 10,000.00 $ 10,000.00
12/31/86 ............. $ 9,860.92 $ 10,349.08 $ 10,346.00
3/31/87 .............. $ 10,072.31 $ 10,570.93 $ 10,596.37
6/30/87 .............. $ 9,678.75 $ 10,157.89 $ 10,309.21
9/30/87 .............. $ 9,225.33 $ 9,682.02 $ 10,052.51
12/31/87 ............. $ 9,798.58 $ 10,283.65 $ 10,501.86
3/31/88 .............. $ 10,157.58 $ 10,660.41 $ 10,863.12
6/30/88 .............. $ 10,398.37 $ 10,913.12 $ 11,072.78
9/30/88 .............. $ 10,718.49 $ 11,249.09 $ 11,356.24
12/31/88 ............. $ 11,039.67 $ 11,586.17 $ 11,566.34
3/31/89 .............. $ 11,156.27 $ 11,708.54 $ 11,642.67
6/30/89 .............. $ 11,782.41 $ 12,365.68 $ 12,331.92
9/30/89 .............. $ 11,757.65 $ 12,339.70 $ 12,340.55
12/31/89 ............. $ 12,147.84 $ 12,749.21 $ 12,814.43
3/31/90 .............. $ 12,074.71 $ 12,672.45 $ 12,872.09
6/30/90 .............. $ 12,356.92 $ 12,968.63 $ 13,173.30
9/30/90 .............. $ 12,272.38 $ 12,879.92 $ 13,181.20
12/31/90 ............. $ 12,761.01 $ 13,392.74 $ 13,749.31
3/31/91 .............. $ 12,973.78 $ 13,616.06 $ 14,060.05
6/30/91 .............. $ 13,210.03 $ 13,864.00 $ 14,359.53
9/30/91 .............. $ 13,640.86 $ 14,316.16 $ 14,918.11
12/31/91 ............. $ 13,960.14 $ 14,651.24 $ 15,419.36
3/31/92 .............. $ 13,929.36 $ 14,618.93 $ 15,465.62
6/30/92 .............. $ 14,390.82 $ 15,103.23 $ 16,053.31
9/30/92 .............. $ 14,696.95 $ 15,424.51 $ 16,478.73
12/31/92 ............. $ 15,030.79 $ 15,774.87 $ 16,778.64
3/31/93 .............. $ 15,529.89 $ 16,298.67 $ 17,401.13
6/30/93 .............. $ 16,028.12 $ 16,821.55 $ 17,970.14
9/30/93 .............. $ 16,539.56 $ 17,358.31 $ 18,577.54
12/31/93 ............. $ 16,701.27 $ 17,528.02 $ 18,837.62
3/31/94 .............. $ 15,887.17 $ 16,673.62 $ 17,803.44
6/30/94 .............. $ 16,028.86 $ 16,822.32 $ 18,001.05
9/30/94 .............. $ 16,056.65 $ 16,851.48 $ 18,123.46
12/31/94 ............. $ 15,844.98 $ 16,629.33 $ 17,862.48
3/31/95 .............. $ 16,850.04 $ 17,684.14 $ 19,125.36
6/30/95 .............. $ 17,139.83 $ 17,988.27 $ 19,586.28
9/30/95 .............. $ 17,430.50 $ 18,293.33 $ 20,150.37
12/31/95 ............. $ 18,057.45 $ 18,951.30 $ 20,980.56
3/31/96 .............. $ 17,843.67 $ 18,726.95 $ 20,726.70
6/30/96 .............. $ 18,026.74 $ 18,919.08 $ 20,886.29
9/30/96 .............. $ 18,259.41 $ 19,163.26 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Colorado Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Colorado Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Colorado
Municipal Series
Class A with Sales Charge (0.17)% 4.98% 6.21%
Class A without Sales Charge 4.76 6.01 6.72
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Colorado
Municipal Series
Class D with CDSL 2.96% n/a
Class D without CDSL 3.95 1.89%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
7
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN GEORGIA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN GEORGIA MUNICIPAL SERIES CLASS A
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES D)
- ---- ------------ ------------ ----------
6/15/87 ........... $ 9,520.00 $ 10,000.00 $ 10,000.00
6/30/87 ........... $ 9,413.33 $ 9,887.95
9/30/87 ........... $ 8,795.01 $ 9,238.45 $ 9,751.00
12/31/87 .......... $ 9,408.85 $ 9,883.25 $ 10,186.87
3/31/88 ........... $ 9,746.26 $ 10,237.68 $ 10,537.30
6/30/88 ........... $ 10,009.51 $ 10,514.20 $ 10,740.67
9/30/88 ........... $ 10,334.58 $ 10,855.65 $ 11,015.63
12/31/88 .......... $ 10,691.63 $ 11,230.70 $ 11,219.42
3/31/89 ........... $ 10,791.50 $ 11,335.61 $ 11,293.47
6/30/89 ........... $ 11,430.34 $ 12,006.66 $ 11,962.04
9/30/89 ........... $ 11,383.14 $ 11,957.07 $ 11,970.41
12/31/89 .......... $ 11,747.04 $ 12,339.33 $ 12,430.08
3/31/90 ........... $ 11,747.04 $ 12,339.33 $ 12,486.01
6/18/90 ........... $ 12,007.71 $ 12,613.15 $ 12,778.18
9/30/90 ........... $ 11,973.62 $ 12,577.34 $ 12,785.85
12/31/90 .......... $ 12,570.46 $ 13,204.28 $ 13,336.92
3/31/91 ........... $ 12,800.49 $ 13,445.91 $ 13,638.34
6/30/91 ........... $ 13,057.80 $ 13,716.20 $ 13,928.83
9/30/91 ........... $ 13,565.90 $ 14,249.93 $ 14,470.66
12/31/91 .......... $ 13,949.88 $ 14,653.26 $ 14,956.88
3/31/92 ........... $ 13,940.70 $ 14,643.60 $ 15,001.75
6/30/92 ........... $ 14,508.36 $ 15,239.88 $ 15,571.82
9/30/92 ........... $ 14,874.38 $ 15,624.36 $ 15,984.47
12/31/92 .......... $ 15,205.41 $ 15,972.09 $ 16,275.39
3/31/93 ........... $ 15,646.24 $ 16,435.13 $ 16,879.20
6/30/93 ........... $ 16,175.66 $ 16,991.24 $ 17,431.15
9/30/93 ........... $ 16,950.57 $ 17,805.24 $ 18,020.33
12/31/93 .......... $ 17,061.47 $ 17,921.74 $ 18,272.61
3/31/94 ........... $ 15,897.11 $ 16,698.67 $ 17,269.44
6/30/94 ........... $ 15,994.79 $ 16,801.27 $ 17,461.14
9/30/94 ........... $ 16,015.12 $ 16,822.62 $ 17,579.87
12/31/94 .......... $ 15,758.18 $ 16,552.72 $ 17,326.72
3/31/95 ........... $ 16,972.31 $ 17,828.08 $ 18,551.72
6/30/95 ........... $ 17,482.68 $ 18,364.18 $ 18,998.82
9/30/95 ........... $ 17,882.41 $ 18,784.05 $ 19,545.98
12/31/95 .......... $ 18,777.23 $ 19,723.98 $ 20,351.28
3/31/96 ........... $ 18,390.69 $ 19,317.96 $ 20,105.03
6/30/96 ........... $ 18,554.70 $ 19,490.25 $ 20,259.84
9/30/96 ........... $ 19,056.27 $ 20,017.11 $ 20,725.81
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
Georgia Municipal Series Class A shares, with and without the maximum initial
sales charge of 4.75%, and the Lehman Index. Also included in the table are the
average annual total returns for the one-year and since-inception periods
through September 30, 1996, for Seligman Georgia Municipal Series Class D
shares, with and without the effect of the 1% contingent deferred sales load
("CDSL") imposed on shares redeemed within one year of purchase, and the Lehman
Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 6/15/87
---- ----- -------
Seligman Georgia
Municipal Series
Class A with Sales Charge 1.50% 6.00% 7.18%
Class A without Sales Charge 6.56 7.03 7.75
Lehman Index 6.04 7.45 8.20*
* From 6/30/87.
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Georgia
Municipal Series
Class D with CDSL 4.60% n/a
Class D without CDSL 5.60 2.91%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
8
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN LOUISIANA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN LOUISIANA MUNICIPAL SERIES CLASS A
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............... $ 9,519.81 $ 10,000.00 $ 10,000.00
12/31/86 .............. $ 9,849.25 $ 10,346.05 $ 10,346.00
3/31/87 ............... $ 10,216.60 $ 10,731.94 $ 10,596.37
6/30/87 ............... $ 9,867.77 $ 10,365.50 $ 10,309.21
9/30/87 ............... $ 9,578.63 $ 10,061.78 $ 10,052.51
12/31/87 .............. $ 10,092.92 $ 10,602.01 $ 10,501.86
3/31/88 ............... $ 10,417.38 $ 10,942.84 $ 10,863.12
6/30/88 ............... $ 10,636.19 $ 11,172.70 $ 11,072.78
9/30/88 ............... $ 10,985.51 $ 11,539.63 $ 11,356.24
12/31/88 .............. $ 11,227.28 $ 11,793.59 $ 11,566.34
3/31/89 ............... $ 11,360.88 $ 11,933.95 $ 11,642.67
6/30/89 ............... $ 11,974.91 $ 12,578.94 $ 12,331.92
9/30/89 ............... $ 11,978.21 $ 12,582.41 $ 12,340.55
12/31/89 .............. $ 12,365.24 $ 12,988.97 $ 12,814.43
3/31/90 ............... $ 12,367.41 $ 12,991.24 $ 12,872.09
6/30/90 ............... $ 12,670.83 $ 13,309.97 $ 13,173.30
9/30/90 ............... $ 12,601.16 $ 13,236.79 $ 13,181.20
12/31/90 .............. $ 13,213.99 $ 13,880.54 $ 13,749.31
3/31/91 ............... $ 13,491.57 $ 14,172.12 $ 14,060.05
6/30/91 ............... $ 13,772.33 $ 14,467.03 $ 14,359.53
9/30/91 ............... $ 14,301.61 $ 15,023.01 $ 14,918.11
12/31/91 .............. $ 14,718.04 $ 15,460.45 $ 15,419.36
3/31/92 ............... $ 14,701.05 $ 15,442.60 $ 15,465.62
6/30/92 ............... $ 15,305.73 $ 16,077.79 $ 16,053.31
9/30/92 ............... $ 15,607.37 $ 16,394.64 $ 16,478.73
12/31/92 .............. $ 15,871.06 $ 16,671.63 $ 16,778.64
3/31/93 ............... $ 16,475.06 $ 17,306.09 $ 17,401.13
6/30/93 ............... $ 16,973.01 $ 17,829.16 $ 17,970.14
9/30/93 ............... $ 17,495.30 $ 18,377.80 $ 18,577.54
12/31/93 .............. $ 17,687.92 $ 18,580.14 $ 18,837.62
3/31/94 ............... $ 16,735.60 $ 17,579.80 $ 17,803.44
6/30/94 ............... $ 16,807.10 $ 17,654.89 $ 18,001.05
9/30/94 ............... $ 16,824.53 $ 17,673.20 $ 18,123.46
12/31/94 .............. $ 16,647.04 $ 17,486.76 $ 17,862.48
3/31/95 ............... $ 17,741.12 $ 18,636.03 $ 19,125.36
6/30/95 ............... $ 18,089.77 $ 19,002.27 $ 19,586.28
9/30/95 ............... $ 18,556.53 $ 19,492.57 $ 20,150.37
12/31/95 .............. $ 19,493.28 $ 20,476.57 $ 20,980.56
3/31/96 ............... $ 19,176.87 $ 20,144.20 $ 20,726.70
6/30/96 ............... $ 19,238.78 $ 20,209.24 $ 20,886.29
9/30/96 ............... $ 19,729.62 $ 20,724.85 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Louisiana Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Louisiana Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Louisiana
Municipal Series
Class A with Sales Charge 1.22% 5.61% 7.03%
Class A without Sales Charge 6.32 6.65 7.56
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- ------
Seligman Louisiana
Municipal Series
Class D with CDSL 4.37% n/a
Class D without CDSL 5.37 2.79%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
9
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
SELIGMAN MARYLAND MUNICIPAL SERIES CLASS A
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,523.21 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,894.74 $ 10,390.13 $ 10,346.00
3/31/87 ............ $ 10,071.26 $ 10,575.49 $ 10,596.37
6/30/87 ............ $ 9,543.89 $ 10,021.72 $ 10,309.21
9/30/87 ............ $ 9,198.89 $ 9,659.44 $ 10,052.51
12/31/87 ........... $ 9,805.37 $ 10,296.27 $ 10,501.86
3/31/88 ............ $ 10,086.36 $ 10,591.32 $ 10,863.12
6/30/88 ............ $ 10,314.46 $ 10,830.83 $ 11,072.78
9/30/88 ............ $ 10,646.01 $ 11,178.99 $ 11,356.24
12/31/88 ........... $ 10,905.03 $ 11,450.96 $ 11,566.34
3/31/89 ............ $ 11,034.36 $ 11,586.78 $ 11,642.67
6/30/89 ............ $ 11,679.80 $ 12,264.52 $ 12,331.92
9/30/89 ............ $ 11,650.04 $ 12,233.26 $ 12,340.55
12/31/89 ........... $ 12,049.47 $ 12,652.70 $ 12,814.43
3/31/90 ............ $ 12,019.67 $ 12,621.40 $ 12,872.09
6/30/90 ............ $ 12,271.76 $ 12,886.11 $ 13,173.30
9/30/90 ............ $ 12,170.77 $ 12,780.06 $ 13,181.20
12/31/90 ........... $ 12,790.73 $ 13,431.05 $ 13,749.31
3/31/91 ............ $ 13,001.39 $ 13,652.25 $ 14,060.05
6/30/91 ............ $ 13,237.48 $ 13,900.16 $ 14,359.53
9/30/91 ............ $ 13,784.40 $ 14,474.45 $ 14,918.11
12/31/91 ........... $ 14,129.88 $ 14,837.25 $ 15,419.36
3/31/92 ............ $ 14,176.64 $ 14,886.35 $ 15,465.62
6/30/92 ............ $ 14,688.93 $ 15,424.29 $ 16,053.31
9/30/92 ............ $ 15,046.00 $ 15,799.24 $ 16,478.73
12/31/92 ........... $ 15,294.08 $ 16,059.73 $ 16,778.64
3/31/93 ............ $ 15,860.93 $ 16,654.94 $ 17,401.13
6/30/93 ............ $ 16,407.52 $ 17,228.91 $ 17,970.14
9/30/93 ............ $ 17,036.14 $ 17,888.99 $ 18,577.54
12/31/93 ........... $ 17,118.82 $ 17,975.82 $ 18,837.62
3/31/94 ............ $ 16,212.79 $ 17,024.43 $ 17,803.44
6/30/94 ............ $ 16,313.04 $ 17,129.70 $ 18,001.05
9/30/94 ............ $ 16,340.67 $ 17,158.71 $ 18,123.46
12/31/94 ........... $ 16,181.57 $ 16,991.65 $ 17,862.48
3/31/95 ............ $ 17,307.23 $ 18,173.66 $ 19,125.36
6/30/95 ............ $ 17,690.97 $ 18,576.62 $ 19,586.28
9/30/95 ............ $ 18,121.39 $ 19,028.59 $ 20,150.37
12/31/95 ........... $ 18,906.20 $ 19,852.69 $ 20,980.56
3/31/96 ............ $ 18,579.99 $ 19,510.16 $ 20,726.70
6/30/96 ............ $ 18,797.52 $ 19,738.57 $ 20,886.29
9/30/96 ............ $ 19,208.42 $ 20,170.04 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Maryland Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Maryland Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ----- -----
Seligman Maryland
Municipal Series
Class A with Sales Charge 0.93% 5.82% 6.75%
Class A without Sales Charge 6.00 6.86 7.27
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- --------
Seligman Maryland
Municipal Series
Class D with CDSL 3.91% n/a
Class D without CDSL 4.91 2.92%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
10
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN MASSACHUSETTS MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ...... $ 9,527.75 $ 10,000.00 $ 10,000.00
12/31/86 ..... $ 9,861.68 $ 10,350.49 $ 10,346.00
3/31/87 ...... $ 10,163.29 $ 10,667.06 $ 10,596.37
6/30/87 ...... $ 9,676.07 $ 10,155.69 $ 10,309.21
9/30/87 ...... $ 9,322.42 $ 9,784.51 $ 10,052.51
12/31/87 ..... $ 9,856.37 $ 10,344.93 $ 10,501.86
3/31/88 ...... $ 10,242.46 $ 10,750.16 $ 10,863.12
6/30/88 ...... $ 10,480.96 $ 11,000.47 $ 11,072.78
9/30/88 ...... $ 10,734.83 $ 11,266.92 $ 11,356.24
12/31/88 ..... $ 10,950.71 $ 11,493.51 $ 11,566.34
3/31/89 ...... $ 11,005.99 $ 11,551.53 $ 11,642.67
6/30/89 ...... $ 11,657.67 $ 12,235.51 $ 12,331.92
9/30/89 ...... $ 11,613.22 $ 12,188.86 $ 12,340.55
12/31/89 ..... $ 11,900.02 $ 12,489.88 $ 12,814.43
3/31/90 ...... $ 11,896.82 $ 12,486.51 $ 12,872.09
6/30/90 ...... $ 12,143.93 $ 12,745.87 $ 13,173.30
9/30/90 ...... $ 11,901.29 $ 12,491.21 $ 13,181.20
12/31/90 ..... $ 12,544.66 $ 13,166.46 $ 13,749.31
3/31/91 ...... $ 12,919.18 $ 13,559.54 $ 14,060.05
6/30/91 ...... $ 13,220.24 $ 13,875.52 $ 14,359.53
9/30/91 ...... $ 13,786.18 $ 14,469.51 $ 14,918.11
12/31/91 ..... $ 14,171.91 $ 14,874.37 $ 15,419.36
3/31/92 ...... $ 14,251.50 $ 14,957.89 $ 15,465.62
6/30/92 ...... $ 14,790.14 $ 15,523.22 $ 16,053.31
9/30/92 ...... $ 15,130.72 $ 15,880.69 $ 16,478.73
12/31/92 ..... $ 15,458.40 $ 16,224.61 $ 16,778.64
3/31/93 ...... $ 16,014.91 $ 16,808.69 $ 17,401.13
6/30/93 ...... $ 16,593.42 $ 17,415.88 $ 17,970.14
9/30/93 ...... $ 17,124.56 $ 17,973.34 $ 18,577.54
12/31/93 ..... $ 17,239.87 $ 18,094.38 $ 18,837.62
3/31/94 ...... $ 16,431.15 $ 17,245.57 $ 17,803.44
6/30/94 ...... $ 16,565.95 $ 17,387.04 $ 18,001.05
9/30/94 ...... $ 16,621.04 $ 17,444.86 $ 18,123.46
12/31/94 ..... $ 16,475.88 $ 17,292.51 $ 17,862.48
3/31/95 ...... $ 17,491.45 $ 18,358.41 $ 19,125.36
6/30/95 ...... $ 17,818.44 $ 18,701.61 $ 19,586.28
9/30/95 ...... $ 18,213.68 $ 19,116.45 $ 20,150.37
12/31/95 ..... $ 19,014.78 $ 19,920.68 $ 20,980.56
3/31/96 ...... $ 18,651.29 $ 19,575.75 $ 20,726.70
6/30/96 ...... $ 18,851.22 $ 19,785.59 $ 20,886.29
9/30/96 ...... $ 19,300.24 $ 20,256.86 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Massachusetts Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Massachusetts Municipal Series Class D shares, with and
without the effect of the 1% contingent deferred sales load ("CDSL") imposed on
shares redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ---- -----
Seligman Massachusetts
Municipal Series
Class A with Sales Charge 0.99% 5.93% 6.80%
Class A without Sales Charge 5.97 6.96 7.31
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
---- --------
Seligman Massachusetts
Municipal Series
Class D with CDSL 4.02% n/a
Class D without CDSL 5.01 2.82%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
11
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN MICHIGAN MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,520.62 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,821.45 $ 10,315.97 $ 10,346.00
3/31/87 ............ $ 10,077.55 $ 10,584.98 $ 10,596.37
6/30/87 ............ $ 9,652.43 $ 10,138.44 $ 10,309.21
9/30/87 ............ $ 9,247.67 $ 9,713.30 $ 10,052.51
12/31/87 ........... $ 9,780.98 $ 10,273.47 $ 10,501.86
3/31/88 ............ $ 10,132.37 $ 10,642.56 $ 10,863.12
6/30/88 ............ $ 10,408.30 $ 10,932.38 $ 11,072.78
9/30/88 ............ $ 10,725.43 $ 11,265.49 $ 11,356.24
12/31/88 ........... $ 10,997.06 $ 11,550.80 $ 11,566.34
3/31/89 ............ $ 11,110.68 $ 11,670.14 $ 11,642.67
6/30/89 ............ $ 11,809.60 $ 12,404.26 $ 12,331.92
9/30/89 ............ $ 11,787.86 $ 12,381.43 $ 12,340.55
12/31/89 ........... $ 12,174.96 $ 12,788.01 $ 12,814.43
3/31/90 ............ $ 12,166.07 $ 12,778.68 $ 12,872.09
6/30/90 ............ $ 12,454.44 $ 13,081.56 $ 13,173.30
9/30/90 ............ $ 12,326.06 $ 12,946.71 $ 13,181.20
12/31/90 ........... $ 12,886.98 $ 13,535.88 $ 13,749.31
3/31/91 ............ $ 13,154.24 $ 13,816.59 $ 14,060.05
6/30/91 ............ $ 13,443.48 $ 14,120.40 $ 14,359.53
9/30/91 ............ $ 13,970.01 $ 14,673.44 $ 14,918.11
12/31/91 ........... $ 14,434.27 $ 15,161.09 $ 15,419.36
3/31/92 ............ $ 14,461.82 $ 15,190.03 $ 15,465.62
6/30/92 ............ $ 15,046.69 $ 15,804.35 $ 16,053.31
9/30/92 ............ $ 15,443.76 $ 16,221.41 $ 16,478.73
12/31/92 ........... $ 15,778.74 $ 16,573.26 $ 16,778.64
3/31/93 ............ $ 16,313.79 $ 17,135.25 $ 17,401.13
6/30/93 ............ $ 16,912.53 $ 17,764.14 $ 17,970.14
9/30/93 ............ $ 17,447.22 $ 18,325.75 $ 18,577.54
12/31/93 ........... $ 17,590.20 $ 18,475.94 $ 18,837.62
3/31/94 ............ $ 16,776.33 $ 17,621.08 $ 17,803.44
6/30/94 ............ $ 16,872.11 $ 17,721.69 $ 18,001.05
9/30/94 ............ $ 16,941.26 $ 17,794.32 $ 18,123.46
12/31/94 ........... $ 16,739.62 $ 17,582.53 $ 17,862.48
3/31/95 ............ $ 17,840.15 $ 18,738.47 $ 19,125.36
6/30/95 ............ $ 18,147.55 $ 19,061.34 $ 19,586.28
9/30/95 ............ $ 18,560.02 $ 19,494.58 $ 20,150.37
12/31/95 ........... $ 19,381.48 $ 20,357.40 $ 20,980.56
3/31/96 ............ $ 19,067.50 $ 20,027.62 $ 20,726.70
6/30/96 ............ $ 19,211.22 $ 20,178.57 $ 20,886.29
9/30/96 ............ $ 19,703.62 $ 20,695.77 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Michigan Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Michigan Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Michigan
Municipal Series
Class A with Sales Charge 1.07% 6.08% 7.02%
Class A without Sales Charge 6.16 7.12 7.54
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Michigan
Municipal Series
Class D with CDSL 4.10% n/a
Class D without CDSL 5.09 2.81%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
12
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN MINNESOTA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE ALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,523.24 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,837.42 $ 10,329.89 $ 10,346.00
3/31/87 ............ $ 10,125.95 $ 10,632.86 $ 10,596.37
6/30/87 ............ $ 9,676.02 $ 10,160.41 $ 10,309.21
9/30/87 ............ $ 9,338.59 $ 9,806.09 $ 10,052.51
12/31/87 ........... $ 9,784.62 $ 10,274.45 $ 10,501.86
3/31/88 ............ $ 10,155.82 $ 10,664.23 $ 10,863.12
6/30/88 ............ $ 10,392.75 $ 10,913.01 $ 11,072.78
9/30/88 ............ $ 10,716.93 $ 11,253.42 $ 11,356.24
12/31/88 ........... $ 10,981.37 $ 11,531.09 $ 11,566.34
3/31/89 ............ $ 11,030.95 $ 11,583.16 $ 11,642.67
6/30/89 ............ $ 11,694.34 $ 12,279.76 $ 12,331.92
9/30/89 ............ $ 11,610.22 $ 12,191.43 $ 12,340.55
12/31/89 ........... $ 12,067.50 $ 12,671.61 $ 12,814.43
3/31/90 ............ $ 12,071.35 $ 12,675.65 $ 12,872.09
6/30/90 ............ $ 12,345.59 $ 12,963.61 $ 13,173.30
9/30/90 ............ $ 12,282.40 $ 12,897.26 $ 13,181.20
12/31/90 ........... $ 12,854.64 $ 13,498.14 $ 13,749.31
3/31/91 ............ $ 13,021.42 $ 13,673.27 $ 14,060.05
6/30/91 ............ $ 13,262.30 $ 13,926.20 $ 14,359.53
9/30/91 ............ $ 13,645.30 $ 14,328.37 $ 14,918.11
12/31/91 ........... $ 13,822.38 $ 14,514.31 $ 15,419.36
3/31/92 ............ $ 13,968.98 $ 14,668.25 $ 15,465.62
6/30/92 ............ $ 14,394.31 $ 15,114.87 $ 16,053.31
9/30/92 ............ $ 14,697.16 $ 15,432.88 $ 16,478.73
12/31/92 ........... $ 14,883.05 $ 15,628.08 $ 16,778.64
3/31/93 ............ $ 15,494.75 $ 16,270.39 $ 17,401.13
6/30/93 ............ $ 16,079.83 $ 16,884.76 $ 17,970.14
9/30/93 ............ $ 16,617.00 $ 17,448.82 $ 18,577.54
12/31/93 ........... $ 16,890.33 $ 17,735.83 $ 18,837.62
3/31/94 ............ $ 16,344.56 $ 17,162.74 $ 17,803.44
6/30/94 ............ $ 16,460.78 $ 17,284.78 $ 18,001.05
9/30/94 ............ $ 16,636.35 $ 17,469.13 $ 18,123.46
12/31/94 ........... $ 16,461.67 $ 17,285.71 $ 17,862.48
3/31/95 ............ $ 17,284.65 $ 18,149.88 $ 19,125.36
6/30/95 ............ $ 17,605.46 $ 18,486.75 $ 19,586.28
9/30/95 ............ $ 17,902.12 $ 18,798.27 $ 20,150.37
12/31/95 ........... $ 18,339.36 $ 19,257.40 $ 20,980.56
3/31/96 ............ $ 18,120.95 $ 19,028.06 $ 20,726.70
6/30/96 ............ $ 18,270.49 $ 19,185.08 $ 20,886.29
9/30/96 ............ $ 18,616.27 $ 19,548.17 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Minnesota Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Minnesota Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Minnesota
Municipal Series
Class A with Sales Charge (0.95)% 5.38% 6.41%
Class A without Sales Charge 3.99 6.41 6.93
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Minnesota
Municipal Series
Class D with CDSL 2.08% n/a
Class D without CDSL 3.06 2.33%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
13
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN MISSOURI MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,518.85 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,804.66 $ 10,300.25 $ 10,346.00
3/31/87 ............ $ 10,048.49 $ 10,556.41 $ 10,596.37
6/30/87 ............ $ 9,619.54 $ 10,105.77 $ 10,309.21
9/30/87 ............ $ 9,119.13 $ 9,580.07 $ 10,052.51
12/31/87 ........... $ 9,773.73 $ 10,267.77 $ 10,501.86
3/31/88 ............ $ 10,128.45 $ 10,640.42 $ 10,863.12
6/30/88 ............ $ 10,393.69 $ 10,919.06 $ 11,072.78
9/30/88 ............ $ 10,645.43 $ 11,183.54 $ 11,356.24
12/31/88 ........... $ 10,991.21 $ 11,546.79 $ 11,566.34
3/31/89 ............ $ 11,045.43 $ 11,603.73 $ 11,642.67
6/30/89 ............ $ 11,681.05 $ 12,271.49 $ 12,331.92
9/30/89 ............ $ 11,638.94 $ 12,227.24 $ 12,340.55
12/31/89 ........... $ 12,029.13 $ 12,637.15 $ 12,814.43
3/31/90 ............ $ 12,021.95 $ 12,629.61 $ 12,872.09
6/30/90 ............ $ 12,339.69 $ 12,963.40 $ 13,173.30
9/30/90 ............ $ 12,274.94 $ 12,895.38 $ 13,181.20
12/31/90 ........... $ 12,862.48 $ 13,512.62 $ 13,749.31
3/31/91 ............ $ 13,111.83 $ 13,774.55 $ 14,060.05
6/30/91 ............ $ 13,418.13 $ 14,096.35 $ 14,359.53
9/30/91 ............ $ 13,945.88 $ 14,650.77 $ 14,918.11
12/31/91 ........... $ 14,324.41 $ 15,048.44 $ 15,419.36
3/31/92 ............ $ 14,327.52 $ 15,051.71 $ 15,465.62
6/30/92 ............ $ 14,861.34 $ 15,612.50 $ 16,053.31
9/30/92 ............ $ 15,043.56 $ 15,803.93 $ 16,478.73
12/31/92 ........... $ 15,363.22 $ 16,139.74 $ 16,778.64
3/31/93 ............ $ 15,885.99 $ 16,688.94 $ 17,401.13
6/30/93 ............ $ 16,438.77 $ 17,269.66 $ 17,970.14
9/30/93 ............ $ 17,025.32 $ 17,885.85 $ 18,577.54
12/31/93 ........... $ 17,115.11 $ 17,980.17 $ 18,837.62
3/31/94 ............ $ 16,069.96 $ 16,882.19 $ 17,803.44
6/30/94 ............ $ 16,161.41 $ 16,978.27 $ 18,001.05
9/30/94 ............ $ 16,199.73 $ 17,018.53 $ 18,123.46
12/31/94 ........... $ 16,033.87 $ 16,844.29 $ 17,862.48
3/31/95 ............ $ 17,205.36 $ 18,074.98 $ 19,125.36
6/30/95 ............ $ 17,519.87 $ 18,405.4 $ 19,586.28
9/30/95 ............ $ 17,928.84 $ 18,835.04 $ 20,150.37
12/31/95 ........... $ 18,751.67 $ 19,699.46 $ 20,980.56
3/31/96 ............ $ 18,383.13 $ 19,312.29 $ 20,726.70
6/30/96 ............ $ 18,595.95 $ 19,535.87 $ 20,886.29
9/30/96 ............ $ 19,052.20 $ 20,015.18 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Missouri Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman Missouri Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
---- ---- -----
Seligman Missouri
Municipal Series
Class A with Sales Charge 1.27% 5.42% 6.66%
Class A without Sales Charge 6.27 6.44 7.19
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Missouri
Municipal Series
Class D with CDSL 4.46% n/a
Class D without CDSL 5.46 2.64%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
14
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN NEW YORK MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,526.01 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,981.59 $ 10,478.25 $ 10,346.00
3/31/87 ............ $ 10,244.29 $ 10,754.02 $ 10,596.37
6/30/87 ............ $ 9,742.68 $ 10,227.44 $ 10,309.21
9/30/87 ............ $ 9,294.93 $ 9,757.43 $ 10,052.51
12/31/87 ........... $ 9,846.98 $ 10,336.95 $ 10,501.86
3/31/88 ............ $ 10,119.32 $ 10,622.84 $ 10,863.12
6/30/88 ............ $ 10,328.56 $ 10,842.50 $ 11,072.78
9/30/88 ............ $ 10,664.58 $ 11,195.23 $ 11,356.24
12/31/88 ........... $ 10,971.28 $ 11,517.19 $ 11,566.34
3/31/89 ............ $ 11,011.43 $ 11,559.35 $ 11,642.67
6/30/89 ............ $ 11,720.37 $ 12,303.56 $ 12,331.92
9/30/89 ............ $ 11,661.54 $ 12,241.81 $ 12,340.55
12/31/89 ........... $ 12,001.58 $ 12,598.76 $ 12,814.43
3/31/90 ............ $ 11,873.84 $ 12,464.66 $ 12,872.09
6/30/90 ............ $ 12,216.80 $ 12,824.70 $ 13,173.30
9/30/90 ............ $ 12,033.58 $ 12,632.36 $ 13,181.20
12/31/90 ........... $ 12,502.58 $ 13,124.69 $ 13,749.31
3/31/91 ............ $ 12,792.91 $ 13,429.47 $ 14,060.05
6/30/91 ............ $ 13,124.05 $ 13,777.08 $ 14,359.53
9/30/91 ............ $ 13,785.57 $ 14,471.52 $ 14,918.11
12/31/91 ........... $ 14,193.75 $ 14,900.00 $ 15,419.36
3/31/92 ............ $ 14,213.93 $ 14,921.19 $ 15,465.62
6/30/92 ............ $ 14,871.53 $ 15,611.51 $ 16,053.31
9/30/92 ............ $ 15,136.56 $ 15,889.74 $ 16,478.73
12/31/92 ........... $ 15,514.80 $ 16,286.80 $ 16,778.64
3/31/93 ............ $ 16,233.34 $ 17,041.07 $ 17,401.13
6/30/93 ............ $ 16,844.91 $ 17,683.07 $ 17,970.14
9/30/93 ............ $ 17,445.60 $ 18,313.66 $ 18,577.54
12/31/93 ........... $ 17,572.40 $ 18,446.78 $ 18,837.62
3/31/94 ............ $ 16,410.32 $ 17,226.87 $ 17,803.44
6/30/94 ............ $ 16,521.45 $ 17,343.53 $ 18,001.05
9/30/94 ............ $ 16,508.74 $ 17,330.18 $ 18,123.46
12/31/94 ........... $ 16,178.85 $ 16,983.87 $ 17,862.48
3/31/95 ............ $ 17,493.74 $ 18,364.19 $ 19,125.36
6/30/95 ............ $ 17,868.16 $ 18,757.23 $ 19,586.28
9/30/95 ............ $ 18,313.85 $ 19,225.10 $ 20,150.37
12/31/95 ........... $ 19,302.54 $ 20,263.00 $ 20,980.56
3/31/96 ............ $ 18,928.36 $ 19,870.19 $ 20,726.70
6/30/96 ............ $ 19,087.62 $ 20,037.37 $ 20,886.29
9/30/96 ............ $ 19,590.09 $ 20,564.84 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman New York Municipal
Series Class A shares, with and without the maximum initial sales charge of
4.75%, and the Lehman Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through September 30,
1996, for Seligman New York Municipal Series Class D shares, with and without
the effect of the 1% contingent deferred sales load ("CDSL") imposed on shares
redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman New York
Municipal Series
Class A with Sales Charge 1.91% 6.23% 6.96%
Class A without Sales Charge 6.97 7.28 7.48
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman New York
Municipal Series
Class D with CDSL 4.86% n/a
Class D without CDSL 5.86 2.69%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
15
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued)
- --------------------------------------------------------------------------------
SELIGMAN OHIO MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
9/30/86 ............ $ 9,528.86 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,909.36 $ 10,399.31 $ 10,346.00
3/31/87 ............ $ 10,201.63 $ 10,706.03 $ 10,596.37
6/30/87 ............ $ 9,823.53 $ 10,309.23 $ 10,309.21
9/30/87 ............ $ 9,465.75 $ 9,933.76 $ 10,052.51
12/31/87 ........... $ 9,981.60 $ 10,475.12 $ 10,501.86
3/31/88 ............ $ 10,364.18 $ 10,876.61 $ 10,863.12
6/30/88 ............ $ 10,694.04 $ 11,222.79 $ 11,072.78
9/30/88 ............ $ 10,958.00 $ 11,499.80 $ 11,356.24
12/31/88 ........... $ 11,215.46 $ 11,769.98 $ 11,566.34
3/31/89 ............ $ 11,351.54 $ 11,912.79 $ 11,642.67
6/30/89 ............ $ 11,939.12 $ 12,529.43 $ 12,331.92
9/30/89 ............ $ 11,899.79 $ 12,488.14 $ 12,340.55
12/31/89 ........... $ 12,329.80 $ 12,939.41 $ 12,814.43
3/31/90 ............ $ 12,363.21 $ 12,974.48 $ 12,872.09
6/30/90 ............ $ 12,617.31 $ 13,241.14 $ 13,173.30
9/30/90 ............ $ 12,578.24 $ 13,200.14 $ 13,181.20
12/31/90 ........... $ 13,141.49 $ 13,791.25 $ 13,749.31
3/31/91 ............ $ 13,386.83 $ 14,048.71 $ 14,060.05
6/30/91 ............ $ 13,672.93 $ 14,348.95 $ 14,359.53
9/30/91 ............ $ 14,208.01 $ 14,910.49 $ 14,918.11
12/31/91 ........... $ 14,628.38 $ 15,351.64 $ 15,419.36
3/31/92 ............ $ 14,669.28 $ 15,394.56 $ 15,465.62
6/30/92 ............ $ 15,245.13 $ 15,998.88 $ 16,053.31
9/30/92 ............ $ 15,582.77 $ 16,353.20 $ 16,478.73
12/31/92 ........... $ 15,861.84 $ 16,646.06 $ 16,778.64
3/31/93 ............ $ 16,428.91 $ 17,241.18 $ 17,401.13
6/30/93 ............ $ 17,010.61 $ 17,851.64 $ 17,970.14
9/30/93 ............ $ 17,579.36 $ 18,448.50 $ 18,577.54
12/31/93 ........... $ 17,707.99 $ 18,583.49 $ 18,837.62
3/31/94 ............ $ 16,842.03 $ 17,674.72 $ 17,803.44
6/30/94 ............ $ 17,018.04 $ 17,859.43 $ 18,001.05
9/30/94 ............ $ 17,037.57 $ 17,879.94 $ 18,123.46
12/31/94 ........... $ 16,839.10 $ 17,671.65 $ 17,862.48
3/31/95 ............ $ 17,928.31 $ 18,814.71 $ 19,125.36
6/30/95 ............ $ 18,285.98 $ 19,190.06 $ 19,586.28
9/30/95 ............ $ 18,671.32 $ 19,594.45 $ 20,150.37
12/31/95 ........... $ 19,403.74 $ 20,363.08 $ 20,980.56
3/31/96 ............ $ 19,090.78 $ 20,034.64 $ 20,726.70
6/30/96 ............ $ 19,301.78 $ 20,256.07 $ 20,886.29
9/30/96 ............ $ 19,730.99 $ 20,706.50 $ 21,366.68
The table below shows the average annual total returns for the one-, five-, and
10-year periods through September 30, 1996, for Seligman Ohio Municipal Series
Class A shares, with and without the maximum initial sales charge of 4.75%, and
the Lehman Index. Also included in the table are the average annual total
returns for the one-year and since-inception periods through September 30, 1996,
for Seligman Ohio Municipal Series Class D shares, with and without the effect
of the 1% contingent deferred sales load ("CDSL") imposed on shares redeemed
within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
ONE FIVE 10
YEAR YEARS YEARS
----- ------ ------
Seligman Ohio
Municipal Series
Class A with Sales Charge 0.71% 5.76% 7.03%
Class A without Sales Charge 5.68 6.79 7.55
Lehman Index 6.04 7.45 7.89
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Ohio
Municipal Series
Class D with CDSL 3.74% n/a
Class D without CDSL 4.74 2.83%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
16
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN OREGON MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
10/15/86 ........... $ 9,520.00 $ 10,000.00 $ 10,000.00
12/31/86 ........... $ 9,739.36 $ 10,230.41 $ 10,170.00
3/30/87 ............ $ 9,932.37 $ 10,433.16 $ 10,416.11
6/30/87 ............ $ 9,282.37 $ 9,750.39 $ 10,133.84
9/30/87 ............ $ 8,788.47 $ 9,231.59 $ 9,881.50
12/31/87 ........... $ 9,343.08 $ 9,814.16 $ 10,323.21
3/31/88 ............ $ 9,675.20 $ 10,163.02 $ 10,678.33
6/30/88 ............ $ 10,025.46 $ 10,530.94 $ 10,884.42
9/30/88 ............ $ 10,360.96 $ 10,883.35 $ 11,163.06
12/31/88 ........... $ 10,667.96 $ 11,205.83 $ 11,369.58
3/31/89 ............ $ 10,743.56 $ 11,285.24 $ 11,444.61
6/30/89 ............ $ 11,440.47 $ 12,017.28 $ 12,122.14
9/30/89 ............ $ 11,391.86 $ 11,966.22 $ 12,130.62
12/31/89 ........... $ 11,781.78 $ 12,375.80 $ 12,596.44
3/31/90 ............ $ 11,735.60 $ 12,327.29 $ 12,653.12
6/30/90 ............ $ 12,051.00 $ 12,658.60 $ 12,949.20
9/30/90 ............ $ 11,960.13 $ 12,563.14 $ 12,956.97
12/31/90 ........... $ 12,546.86 $ 13,179.46 $ 13,515.42
3/31/91 ............ $ 12,806.69 $ 13,452.38 $ 13,820.87
6/30/91 ............ $ 13,075.79 $ 13,735.06 $ 14,115.25
9/30/91 ............ $ 13,545.48 $ 14,228.43 $ 14,664.34
12/31/91 ........... $ 13,904.60 $ 14,605.65 $ 15,157.06
3/31/92 ............ $ 13,948.67 $ 14,651.94 $ 15,202.53
6/30/92 ............ $ 14,377.50 $ 15,102.41 $ 15,780.22
9/30/92 ............ $ 14,676.59 $ 15,416.57 $ 16,198.40
12/31/92 ........... $ 14,985.89 $ 15,741.47 $ 16,493.21
3/31/93 ............ $ 15,443.91 $ 16,222.57 $ 17,105.11
6/30/93 ............ $ 15,952.27 $ 16,756.57 $ 17,664.45
9/30/93 ............ $ 16,468.60 $ 17,298.93 $ 18,261.51
12/31/93 ........... $ 16,619.69 $ 17,457.63 $ 18,517.17
3/31/94 ............ $ 15,875.56 $ 16,675.98 $ 17,500.57
6/30/94 ............ $ 16,013.45 $ 16,820.82 $ 17,694.83
9/30/94 ............ $ 16,077.03 $ 16,887.61 $ 17,815.16
12/31/94 ........... $ 15,861.06 $ 16,660.75 $ 17,558.62
3/31/95 ............ $ 16,835.71 $ 17,684.52 $ 18,800.01
6/30/95 ............ $ 17,171.00 $ 18,036.72 $ 19,253.09
9/30/95 ............ $ 17,532.12 $ 18,416.06 $ 19,807.58
12/31/95 ........... $ 18,168.21 $ 19,084.22 $ 20,623.65
3/31/96 ............ $ 17,886.63 $ 18,788.44 $ 20,374.11
6/30/96 ............ $ 18,076.55 $ 18,987.93 $ 20,530.99
9/30/96 ............ $ 18,456.54 $ 19,387.10 $ 21,003.20
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
Oregon Municipal Series Class A shares, with and without the maximum initial
sales charge of 4.75%, and the Lehman Index. Also included in the table are the
average annual total returns for the one-year and since-inception periods
through September 30, 1996, for Seligman Oregon Municipal Series Class D shares,
with and without the effect of the 1% contingent deferred sales load ("CDSL")
imposed on shares redeemed within one year of purchase, and the Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 10/15/86
----- ------ ----------
Seligman Oregon
Municipal Series
Class A with Sales Charge 0.30% 5.35% 6.34%
Class A without Sales Charge 5.27 6.38 6.87
Lehman Index 6.04 7.45 7.77*
* From 10/31/8%6
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman Oregon
Municipal Series
Class D with CDSL 3.33% n/a
Class D without CDSL 4.33 2.64%
Lehman Index 6.04 4.40
- ----------
See page 18 for footnotes.
17
<PAGE>
================================================================================
PERFORMANCE COMPARISON CHARTS AND TABLES (continued) September 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN SOUTH CAROLINA MUNICIPAL SERIES
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.]
LEHMAN BROS.
MUNICIPAL
WITH WITHOUT BOND INDEX
DATE SALES CHARGE SALES CHARGE (SERIES A)
6/30/87 ............ $ 9,520.00 $ 10,000.00 $ 10,000.00
9/30/87 ............ $ 9,009.03 $ 9,463.26 $ 9,751.00
12/31/87 ........... $ 9,582.65 $ 10,065.81 $ 10,186.87
3/31/88 ............ $ 9,906.29 $ 10,405.76 $ 10,537.30
6/30/88 ............ $ 10,141.85 $ 10,653.20 $ 10,740.67
9/30/88 ............ $ 10,466.76 $ 10,994.49 $ 11,015.63
12/31/88 ........... $ 10,776.14 $ 11,319.46 $ 11,219.42
3/31/89 ............ $ 10,833.49 $ 11,379.69 $ 11,293.47
6/30/89 ............ $ 11,530.38 $ 12,111.72 $ 11,962.04
9/30/89 ............ $ 11,451.60 $ 12,028.97 $ 11,970.41
12/31/89 ........... $ 11,918.91 $ 12,519.84 $ 12,430.08
3/31/90 ............ $ 11,873.26 $ 12,471.89 $ 12,486.01
6/30/90 ............ $ 12,161.35 $ 12,774.50 $ 12,778.18
9/30/90 ............ $ 11,964.34 $ 12,567.55 $ 12,785.85
12/31/90 ........... $ 12,635.41 $ 13,272.46 $ 13,336.92
3/31/91 ............ $ 12,881.38 $ 13,530.84 $ 13,638.34
6/30/91 ............ $ 13,152.03 $ 13,815.13 $ 13,928.83
9/30/91 ............ $ 13,633.01 $ 14,320.36 $ 14,470.66
12/31/91 ........... $ 14,090.86 $ 14,801.30 $ 14,956.88
3/31/92 ............ $ 14,154.25 $ 14,867.87 $ 15,001.75
6/30/92 ............ $ 14,692.10 $ 15,432.84 $ 15,571.82
9/30/92 ............ $ 15,007.05 $ 15,763.67 $ 15,984.47
12/31/92 ........... $ 15,273.27 $ 16,043.31 $ 16,275.39
3/31/93 ............ $ 15,782.75 $ 16,578.47 $ 16,879.20
6/30/93 ............ $ 16,321.17 $ 17,144.05 $ 17,431.15
9/30/93 ............ $ 16,886.27 $ 17,737.64 $ 18,020.33
12/31/93 ........... $ 17,061.22 $ 17,921.41 $ 18,272.61
3/31/94 ............ $ 16,007.22 $ 16,814.26 $ 17,269.44
6/30/94 ............ $ 16,102.88 $ 16,914.75 $ 17,461.14
9/30/94 ............ $ 16,106.44 $ 16,918.48 $ 17,579.87
12/31/94 ........... $ 15,917.81 $ 16,720.34 $ 17,326.72
3/31/95 ............ $ 17,068.52 $ 17,929.05 $ 18,551.72
6/30/95 ............ $ 17,423.54 $ 18,301.98 $ 18,998.82
9/30/95 ............ $ 17,828.08 $ 18,726.90 $ 19,545.98
12/31/95 ........... $ 18,727.78 $ 19,671.96 $ 20,351.28
3/31/96 ............ $ 18,368.60 $ 19,294.68 $ 20,105.03
6/30/96 ............ $ 18,565.96 $ 19,501.97 $ 20,259.84
9/30/96 ............ $ 19,044.42 $ 20,004.55 $ 20,725.81
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1996, for Seligman
South Carolina Municipal Series Class A shares, with and without the maximum
initial sales charge of 4.75%, and the Lehman Index. Also included in the table
are the average annual total returns for the one-year and since-inception
periods through September 30, 1996, for Seligman South Carolina Municipal Series
Class D shares, with and without the effect of the 1% contingent deferred sales
load ("CDSL") imposed on shares redeemed within one year of purchase, and the
Lehman Index.
AVERAGE ANNUAL TOTAL RETURNS
SINCE
ONE FIVE INCEPTION
YEAR YEARS 6/30/87
----- ------ ----------
Seligman South Carolina
Municipal Series
Class A with Sales Charge 1.72% 5.89% 7.20%
Class A without Sales Charge 6.82 6.91 7.78
Lehman Index 6.04 7.45 8.20
SINCE
ONE INCEPTION
YEAR 2/1/94
------ ----------
Seligman South Carolina
Municipal Series
Class D with CDSL 4.73% n/a
Class D without CDSL 5.73 2.80%
Lehman Index 6.04 4.40
- ----------
No adjustment was made to Class A shares' performance for periods prior to
January 1, 1993, the commencement date for the annual Administration,
Shareholder Services and Distribution Plan fee of up to 0.25% of average daily
net assets of each Series. The performance of Class D shares will be greater
than or less than the performance shown for Class A shares, based on differences
in sales charges and fees paid by shareholders. Performance data quoted
represent changes in price and assume that all distributions within the periods
are invested in additional shares. The investment return and 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.
18
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ------------ -----
<S> <C> <C> <C> <C>
ALASKA -- 4.5% $5,000,000 Valdez Marine Terminal Rev. (BP Pipeline Inc. Project),
5 1/2% due 10/1/2028 ............................................... Aa3/AA $ 4,703,500
ARIZONA -- 2.6% 3,000,000 Phoenix Civic Improvement Corporation (New City Hall Project),
5.10% due 7/1/2028.................................................. Aa/AA+ 2,724,750
CALIFORNIA -- 2.5% 2,500,000 San Joaquin Hills Transportation Corridor Agency Rev.
(Orange County Senior Lien Toll Road), 6 3/4% due 1/1/2032 ......... NR/NR 2,597,275
FLORIDA -- 4.6% 2,750,000 Jacksonville Electric Authority (Electric System Rev.),
5 1/4% due 10/1/2028................................................ Aa1/AA 2,546,060
2,500,000 Jacksonville Health Facilities Authority Hospital Rev. (Daughters
of Charity National Health System -- St. Vincent's Medical
Center Inc.), 5% due 11/15/2015..................................... Aa/AA 2,222,875
ILLINOIS -- 9.4% 1,000,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6.10% due 8/15/2014...................................... Aa/AA 1,012,490
1,250,000 Illinois Health Facilities Authority Rev. (Edward Hospital Project),
6% due 2/15/2019.................................................... A/ A 1,228,763
2,500,000 Illinois Health Facilities Authority Rev. (Northwestern Memorial
Hospital), 6% due 8/15/2024......................................... Aa/AA 2,518,300
5,000,000 Regional Transportation Authority GOs (Cook, DuPage, Kane,
Lake, McHenry, and Will Counties), 5.85% due 6/1/2023............... Aaa/AAA 4,979,450
KENTUCKY -- 2.0% 1,880,000 Trimble County Pollution Control Rev. (Louisville
Gas & Electric Co. Project), 7 5/8% due 11/1/2020*.................. Aa2/AA 2,063,845
MASSA- 2,000,000 Massachusetts Health & Education Facilities Authority Rev.
CHUSETTS -- 2.1% (Amherst College), 6.80% due 11/1/2021.............................. Aa1/AA+ 2,147,920
MICHIGAN -- 2.2% 2,250,000 Michigan State Strategic Fund Pollution Control Rev.
(General Motors Corp.), 6.20% due 9/1/2020.......................... A3/A- 2,282,287
MISSOURI -- 4.9% 5,000,000 St. Louis Industrial Development Authority Pollution Control Rev.
(Anheuser-Busch Companies, Inc. Project), 5 7/8% due 11/1/2026*..... A1/AA- 5,029,650
NEW YORK -- 6.5% 3,410,000 New York City GOs, 7 1/4% due 8/15/2024................................ Baa1/BBB+ 3,602,256
90,000 New York City GOs, 7 1/4% due 8/15/2024 ............................... Baa1/BBB+ 99,600
3,000,000 United Nations Development Corp. Rev., 6 1/4% due 7/1/2026............. A/NR 3,033,870
NORTH 2,000,000 Mercer County Pollution Control Rev. (Otter Tail Power Company
DAKOTA -- 2.0% Project), 6.90% due 2/1/2019........................................ Aa3/AA- 2,134,540
OKLAHOMA -- 4.4%. 5,000,000 Oklahoma Industrial Authority Health Facilities Rev. (Sisters
of Mercy Health System, St. Louis, Inc.), 5% due 6/1/2013........... Aa/AA 4,541,050
SOUTH 2,000,000 Oconee County Pollution Control Rev. (Duke Power Company
CAROLINA -- 2.1% Project), 7 1/2% due 2/1/2017....................................... Aa2/AA- 2,165,700
SOUTH 6,000,000 South Dakota Housing Development Authority Rev.
DAKOTA -- 5.7% (Homeownership Mortgage), 6.15% due 5/1/2026*....................... Aa1/AAA 5,943,120
TENNESSEE -- 3.0% 3,000,000 Metropolitan Government of Nashville & Davidson County GOs,
6.15% due 5/15/2025................................................. Aa/AA 3,074,850
TEXAS -- 25.3% 3,000,000 Brazos River Authority Pollution Control Rev. (Houston Light &
Power Company Project), 7 7/8% due 11/1/2018*....................... A2/A 3,065,850
3,700,000 Harris County Health Facilities Development Corp. Hospital Rev.
(St. Luke's Episcopal Hospital Project), 6 3/4% due 2/15/2021....... Aa/AA 3,920,890
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
19
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES (continued)
FACE RATINGS MARKET
STATE AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
----- ------ --------------- ------------ -----
<S> <C> <C> <C> <C>
TEXAS (continued) $2,000,000 Harris County Health Facilities Development Corp. SCH Health
Care System Rev. (Sisters of Charity of the Incarnate Word),
7.10% due 7/1/2021.................................................. Aa/AA $ 2,156,820
5,000,000 Potter County Industrial Development Corp. Pollution
Control Rev. (Southwestern Public Service Company Project),
5 3/4% due 9/1/2016 ................................................ Aaa/AAA 4,970,400
5,500,000 San Antonio Electric & Gas Rev., 5% due 2/1/2017....................... Aa1/AA 5,002,580
2,000,000 Texas State Turnpike Authority Rev. (Dallas North Thruway --
Addison Airport Toll Tunnel Project), 6 3/4% due 1/1/2015........... Aaa/AAA 2,209,080
2,715,000 Texas Veterans' Housing Assistance GOs, 6.80% due 12/1/2023*........... Aa/AA 2,800,523
2,000,000 Travis County Housing Finance Corporation (Single Family
Mortgage Rev.), 6.95% due 10/1/2027................................. NR/AAA 2,111,360
VIRGINIA -- 4.9% 5,000,000 Fairfax County Industrial Development Authority Health Care
Rev. (Inova Health System Project), 6% due 8/15/2026................ Aa/AA 5,032,500
WASH- 3,000,000 Seattle Metropolitan Sewer Rev., 6.60% due 1/1/2032.................... Aaa/AAA 3,205,140
INGTON -- 3.1%
WISCONSIN 6,000,000 LaCrosse Resource Recovery Rev. (Northern States Power
--5.8% Company Project), 6% due 11/1/2021*................................. A2/AA- 5,970,360
WYOMING -- 3.9% 4,000,000 Sweetwater County Pollution Control Rev. (Idaho Power
Company Project), 6.05% due 7/15/2026............................... A3/A 4,016,640
------------
Total Municipal Bonds (Cost $103,673,349) -- 101.5%.................................................................. 105,114,294
Variable Rate Demand Notes (Cost $2,900,000) -- 2.8% ................................................................ 2,900,000
Other Assets Less Liabilities -- (4.3)%.............................................................................. (4,420,941)
------------
NET ASSETS -- 100.0% ................................................................................................ $103,593,353
============
</TABLE>
<TABLE>
<CAPTION>
COLORADO SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 3,000,000 Adams County, CO Pollution Control Rev. (Public Service Co. of Colorado Project),
5 7/8% due 4/1/2014 .................................................................. Aaa/AAA $ 3,017,160
1,500,000 Colorado Association of School Boards Lease Purchase Finance Program Certificates
of Participation (Pueblo School District No. 60), 7 1/4% due 12/1/2009 ................ Aaa/AAA 1,638,120
3,000,000 Colorado Health Facilities Authority Rev. (Sisters of Charity Health Care Systems, Inc.),
6% due 5/15/2013 ...................................................................... Aaa/AAA 3,049,290
3,000,000 Colorado Health Facilities Authority Rev. (North Colorado Medical Center),
6% due 5/15/2020 ...................................................................... Aaa/AAA 3,029,910
365,000 Colorado Housing Finance Authority Rev., 7 1/4% due 9/1/2006 ............................. A/A 372,840
605,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 7 1/4% due 11/1/2010 .... Aa/AA+ 606,537
2,085,000 Colorado Housing Finance Authority (Single Family Housing Rev.), 5.85% due 11/1/2015 ..... Aa/AA+ 2,091,630
250,000 Colorado Housing Finance Authority (Single Family Residential Housing Rev.),
8% due 3/1/2017 ....................................................................... Aa/NR 255,385
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
20
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 3,500,000 Colorado Springs, CO Utilities Rev., 6 1/8% due 11/15/2020 ............................... Aa/AA $ 3,568,495
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6 7/8% due 9/1/2011 .................................................................. Aa/AA+ 1,089,120
2,000,000 Colorado Water Resources & Power Development Authority (Clean Water Bonds),
6% due 9/1/2014 ....................................................................... Aa/AA 2,038,980
1,000,000 Colorado Water Resources & Power Development Authority (Clean Water Rev.),
6.30% due 9/1/2014 .................................................................... Aa/AA 1,050,090
2,000,000 Denver, CO City & County (St. Anthony Hospital Systems Rev.), 7 3/4% due 5/1/2014 ........ Aaa/AAA 2,180,360
2,500,000 Denver, CO City & County (Sisters of Charity of Leavenworth Health Services
Corporation), 5% due 12/1/2023 ........................................................ Aa/AA 2,212,375
2,250,000 Denver, CO City & County Excise Tax Rev., 6 1/2% due 9/1/2014 ............................ Aaa/AAA 2,356,043
1,985,000 Fort Collins, CO GOs Water Bonds, 6 3/8% due 12/1/2012 ................................... Aa/AA 2,112,397
2,500,000 Fort Collins Pollution Control Rev. (Anheuser-Busch Project), 6% due 9/1/2031 ............ A1/AA- 2,528,800
3,000,000 Fountain Valley Authority, CO Water Treatment Rev., 6.80% due 12/1/2019 .................. Aa/AA 3,266,370
2,000,000 Northgate Public Building Authority, CO (Landowner Assessment Lien),
8 1/4% due 12/1/2001** ................................................................ NR/NR 500,000
1,895,000 Northglenn, CO Joint Water & Wastewater Utility, 6.80% due 12/1/2008 ..................... Aaa/NR 1,941,920
2,500,000 Platte River Power Authority, CO Power Rev., 6 1/8% due 6/1/2014 ......................... Aa/A+ 2,579,125
2,000,000 Pueblo County, CO Single Family Mortgage Rev., 7.05% due 11/1/2027 ....................... NR/AAA 2,101,440
2,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 1,892,240
3,000,000 University of Colorado Hospital Authority Hospital Rev., 6.40% due 11/15/2022 ............ Aaa/AAA 3,154,710
2,000,000 Westminster, CO (Adams & Jefferson Counties) Sales & Use Tax Rev., 7% due 12/1/2008 ...... Aaa/AAA 2,199,800
------------
Total Municipal Bonds (Cost $50,058,496)-- 96.7% ....................................................... 50,833,137
Variable Rate Demand Notes (Cost $800,000)-- 1.5%....................................................... 800,000
Other Assets Less Liabilities-- 1.8% ................................................................... 916,992
------------
NET ASSETS -- 100.0% ................................................................................... $ 52,550,129
============
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,095,000 Augusta, GA Water & Sewer Rev., 6 1/2% due 5/1/2011 .................................... A/NR $ 1,166,974
1,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 7.40% due 11/1/2010* .............................................. A1/AA- 1,181,480
2,000,000 Cartersville, GA Development Authority Rev. Water & Wastewater Facilities
(Anheuser-Busch), 6 3/4% due 2/1/2012* .............................................. A1/AA- 2,152,960
3,000,000 Chatham County, GA School District GOs, 5 1/2% due 8/1/2020 ............................ Aaa/AAA 2,917,860
750,000 Chatham County Hospital Authority, GA Rev. (Memorial Medical Center, Inc.),
7% due 1/1/2021 ..................................................................... Aaa/AAA 817,703
2,000,000 Columbia County, GA School District GOs, 6 1/4% due 4/1/2013 ........................... Aaa/AAA 2,112,900
1,000,000 Columbia County, GA Water & Sewerage Rev., 6 1/4% due 6/1/2012 ......................... Aaa/AAA 1,042,440
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
** Non-income producing, security in default.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
21
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEORGIA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,000,000 DeKalb County, GA GOs, 5 1/4% due 1/1/2020 ................................................. Aa1/AA+ $ 943,560
1,000,000 DeKalb County, GA Water & Sewerage Rev., 5 3/4% due 10/1/2006 .............................. Aaa/AAA 1,047,320
1,000,000 DeKalb County, GA Water & Sewerage Rev., 7% due 10/1/2014 .................................. Aaa/AA 1,106,600
2,000,000 DeKalb County, GA Water & Sewerage Rev., 5 1/4% due 10/1/2023 .............................. Aa/AA 1,892,500
700,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project),
6 3/4% due 4/1/2017 ..................................................................... Aa1/AA 741,706
300,000 DeKalb Private Hospital Authority, GA Rev. (Emory University Project), 7% due 4/1/2021 ..... Aa1/AA 322,683
1,000,000 Fayette County, GA School District GOs, 6 1/8% due 3/1/2015 ................................ Aa/A+ 1,037,970
3,000,000 Fulton County, GA School District GOs, 5 5/8% due 1/1/2021 ................................. Aa/AA 2,966,430
2,975,000 Georgia Housing & Finance Authority Rev. (Single Family Mortgage),
5 1/4% due 12/1/2020 .................................................................... Aa/AA+ 2,695,469
2,500,000 Georgia Municipal Gas Authority Rev. (Southern Storage Gas Project),
6.40% due 7/1/2014 ...................................................................... NR/A- 2,586,725
410,000 Georgia Residential Finance Authority Homeownership Mortgage Rev.,
7.20% due 12/1/2011* .................................................................... Aa/AA+ 428,975
1,000,000 Georgia State GOs, 5 3/4% due 2/1/2011 ..................................................... Aaa/AA+ 1,029,160
1,750,000 Glynn-Brunswick Memorial Hospital Authority Rev. (Southeast Georgia Health
Systems Project), 6% due 8/1/2016 ....................................................... Aaa/AAA 1,776,512
1,500,000 Gwinnett County, GA Hospital Authority Rev. Anticipation Certificates
(Gwinnett Hospital System, Inc. Project), 5% due 9/1/2019 ............................... Aaa/AAA 1,348,830
1,000,000 Gwinnett County, GA School District GOs, 6.40% due 2/1/2012 ................................ Aa1/AA 1,098,900
735,000 Gwinnett County, GA Water & Sewerage Authority Rev., 6 1/2% due 8/1/2006 ................... Aa1/AA+ 736,191
1,500,000 Henry County School District, GA GOs, 6.45% due 8/1/2011 ................................... A1/A+ 1,644,705
1,000,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 7 1/4% due 7/1/2010 ....... A1/AA- 1,063,030
500,000 Metropolitan Atlanta Rapid Transit Authority, GA Sales Tax Rev., 6 1/4% due 7/1/2018 ....... A1/AA- 535,285
2,000,000 Monroe County, GA Development Authority Pollution Control Rev. (Georgia Power
Company Plant-- Scherer Project), 6% due 7/1/2025 ....................................... Aaa/AAA 2,014,260
2,500,000 Private Colleges & Universities Authority, GA (Spelman College Project),
6.20% due 6/1/2014 ...................................................................... Aaa/AAA 2,623,925
1,500,000 Private Colleges & Universities Authority, GA (Mercer University Project),
6 1/2% due 11/1/2015 .................................................................... Aaa/AAA 1,670,130
3,000,000 Private Colleges & Universities Authority, GA (Agnes Scott College Project),
5 5/8% due 6/1/2023 ..................................................................... Aa/AA- 2,944,890
500,000 Private Colleges & Universities Authority, GA (Emory University Project),
6.40% due 10/1/2023 ..................................................................... Aa1/AA 524,205
2,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ........... Baa1/A 1,895,540
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ........... Baa1/A 946,120
2,000,000 Savannah, GA Airport Rev., 6 1/4% due 1/1/2015* ............................................ Aaa/AAA 2,067,980
-----------
Total Municipal Bonds (Cost $49,614,045) -- 95.8% ........................................................ 51,081,918
Variable Rate Demand Notes (Cost $400,000) -- 0.7% ....................................................... 400,000
Other Assets Less Liabilities -- 3.5% .................................................................... 1,840,447
-----------
NET ASSETS -- 100.0% ..................................................................................... $53,322,365
===========
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
22
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,055,000 Alexandria, LA Utilities Rev., 5.30% due 5/1/2013 ........................................ Aaa/AAA $ 1,011,144
3,000,000 Bastrop, LA Industrial Development Board Pollution Control Rev. (International Paper
Company Project), 6.90% due 3/1/2007 .................................................. A3/A- 3,239,370
2,420,000 East Baton Rouge Parish, LA Mortgage Finance Authority (Single Family
Mortgage Rev.), 5.40% due 10/1/2025 ................................................... Aaa/NR 2,243,413
1,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
7 1/4% due 2/1/2009 ................................................................... Aaa/AAA 1,079,310
3,000,000 East Baton Rouge Parish, LA Public Improvement Sales & Use Tax Rev.,
5.90% due 2/1/2018 .................................................................... Aaa/AAA 3,034,500
3,500,000 East Baton Rouge Parish, LA Sales Tax Rev., 4.90% due 2/1/2016 .......................... Aaa/AAA 3,162,810
2,000,000 Houma, LA Utilities Rev., 6 1/4% due 1/1/2012 ............................................ Aaa/AAA 2,099,380
2,000,000 Jefferson Parish, LA Home Mortgage Authority (Single Family Mortgage Rev.),
6% due 12/1/2024* ..................................................................... Aa/NR 1,936,500
1,000,000 Jefferson Parish School Board, LA Sales Tax School Bonds, 6 1/4% due 2/1/2008 ............ Aaa/AAA 1,063,280
3,000,000 Lafayette, LA Public Improvement Sales Tax Rev., 5.20% due 5/1/2011 ...................... Aaa/AAA 2,870,370
500,000 Lafayette, LA Public Power Authority Electric Rev., 5 1/2% due 11/1/2011 ................. Aaa/NR 493,425
500,000 Lafayette, LA Public Power Authority Electric Rev., 5 1/2% due 11/1/2012 ................. Aaa/NR 490,565
2,500,000 Louisiana Housing Finance Agency Mortgage Rev. (Single Family), 6.45% due 6/1/2027* ...... Aaa/AAA 2,537,675
2,500,000 Louisiana Public Facilities Authority Hospital Rev. (Our Lady of Lourdes Regional
Medical Center Project), 6.45% due 2/1/2022 ........................................... Aaa/AAA 2,627,875
2,500,000 Louisiana Public Facilities Authority Rev. (Sisters of Mercy Health System, St. Louis, Inc.),
7 3/8% due 6/1/2019 ................................................................... Aaa/AA 2,730,375
1,900,000 Louisiana Public Facilities Authority Rev. (Sisters of Mercy Health System, St. Louis, Inc.),
5% due 6/1/2019 ....................................................................... Aa/AA 1,747,639
3,000,000 Louisiana Public Facilities Authority Rev. (Tulane University), 5 3/4% due 2/15/2021 ..... Aaa/AAA 2,976,450
4,000,000 Louisiana State GOs, 6 1/2% due 5/1/2011 ................................................. Aaa/AAA 4,295,000
2,000,000 Louisiana State University & Agricultural & Mechanical College Auxiliary Rev.,
5 3/4% due 7/1/2014 ................................................................... Aaa/AAA 2,002,760
1,000,000 Ouachita Parish, LAHospital Service District Rev. (Glenwood Regional Medical Center),
5 3/4% due 5/15/2021 .................................................................. Aaa/AAA 988,250
190,000 Ouachita Parish, LA Industrial Development Rev. (International Paper Company),
6 1/2% due 4/1/2006 ................................................................... NR/NR 189,827
1,250,000 Saint Charles Parish, LA Environmental Improvement Rev. (Louisiana Power
and Light Company Project), 6.20% due 5/1/2023* ....................................... Baa2/BBB 1,232,937
2,960,000 Saint Charles Parish, LA Waterworks & Wastewater District Utility Rev.,
7.15% due 7/1/2016 .................................................................... Aaa/AAA 3,295,427
1,555,000 Shreveport, LA GOs, 7 1/2% due 4/1/2006 .................................................. Aaa/AAA 1,723,982
2,000,000 Shreveport, LA Water & Sewer Rev., 7 1/8% due 12/1/2014 .................................. Aaa/AAA 2,071,500
2,050,000 Sulphur, LA Housing & Mortgage Finance Trust (Residential Mortgage Rev.),
7 1/4% due 12/1/2010 .................................................................. Aaa/AAA 2,176,813
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
23
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES (continued)
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 3,000,000 Tangipahoa Parish, LA Hospital Service District No. 1 Rev. (Northoaks Medical Center),
6 1/4% due 2/1/2024.................................................................... Aaa/AAA $ 3,120,090
------------
Total Municipal Bonds (Cost $54,499,646) -- 97.9% ...................................................... 56,440,667
Variable Rate Demand Notes (Cost $200,000) -- 0.3% ..................................................... 200,000
Other Assets Less Liabilities -- 1.8% .................................................................. 1,013,014
------------
NET ASSETS -- 100.0% ................................................................................... $ 57,653,681
============
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 3,000,000 Anne Arundel County, MD Pollution Control Rev. (Baltimore Gas and
Electric Company Project), 6% due 4/1/2024 .......................................... A2/A $ 3,038,550
2,000,000 Baltimore, MD Consolidated Public Improvement GOs, 6 3/8% due 10/15/2006 ............... Aaa/AAA 2,209,980
2,500,000 Baltimore, MD Port Facilities Rev. (Consolidated Coal Sales Co. Project),
6 1/2% due 10/1/2011 ................................................................ Aa3/AA- 2,717,525
2,000,000 Howard County, MD Metropolitan District Project GOs, 5 1/2% due 8/15/2022 .............. Aaa/AA+ 1,988,940
4,000,000 Maryland Capital Improvement GOs, 5.20% due 4/15/2006 .................................. Aaa/AAA 4,054,960
1,000,000 Maryland Community Development Administration Dept. of Economic & Community
Development (Single Family Program), 7 3/4% due 4/1/2009 ............................ Aa/NR 1,031,150
2,000,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 7.70% due 5/15/2020* ............................ Aa/NR 2,138,980
2,465,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Single Family Program), 6.80% due 4/1/2024* ............................ Aa/NR 2,538,654
2,500,000 Maryland Community Development Administration Dept. of Housing & Community
Development (Multi-Family Housing), 6.70% due 5/15/2027 ............................. Aa/NR 2,607,150
2,710,000 Maryland Health & Higher Educational Facilities Authority Rev. (Good Samaritan
Hospital), 5 3/4% due 7/1/2019 ...................................................... A1/A 2,659,161
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins
University), 7 1/2% due 7/1/2020 .................................................... Aa/AA- 3,208,950
2,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital),
5 1/8% due 7/1/2021 ................................................................. A1/A 1,811,440
2,750,000 Maryland Health & Higher Educational Facilities Authority Rev. (Ann Arundel Medical
Center), 5% due 7/1/2023 ............................................................ Aaa/AAA 2,469,775
3,000,000 Maryland Health & Higher Educational Facilities Authority Rev. (Francis Scott Key
Medical Center), 5% due 7/1/2023 .................................................... Aaa/AAA 2,694,300
1,000,000 Maryland National Capital Park & Planning Commission GOs (Prince George's County),
6.90% due 7/1/2010 .................................................................. Aa/AA 1,098,130
2,000,000 Maryland Transportation Authority Rev. (Baltimore/Washington International
Airport Project), 6 1/4% due 7/1/2014* .............................................. Aaa/AAA 2,094,940
3,000,000 Maryland Transportation Authority Rev. Transportation Facilities Projects, 5 3/4%
due 7/1/2015 ........................................................................ A1/A+ 3,002,610
1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
6.70% due 9/1/2013 ............................................................... Aaa/AAA 1,107,080
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
24
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
MARYLAND SERIES (continued)
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,000,000 Maryland Water Quality Financing Administration Revolving Loan Fund Rev.,
7.10% due 9/1/2013 .................................................................... Aaa/AAA $ 1,124,420
2,500,000 Montgomery County, MD Consolidated Public Improvement GOs,
4.90% due 10/1/2013 ................................................................... Aaa/AAA 2,326,275
455,000 Montgomery County, MD Housing Opportunities Commission (Single Family
Mortgage Rev.), 7 3/8% due 7/1/2017 ................................................... Aa/NR 479,993
2,000,000 Northeast Maryland Waste Disposal Authority Solid Waste Rev. (Montgomery County
Resource Recovery Project), 6.30% due 7/1/2016* ....................................... A/NR 2,019,840
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 946,120
55,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1),
7.80% due 10/15/2021 .................................................................. Aaa/AAA 56,764
650,000 Puerto Rico Housing Finance Corporation (Single Family Mortgage Rev. Portfolio 1-C),
6.85% due 10/15/2023 .................................................................. Aaa/AAA 677,508
1,500,000 University of Maryland Auxiliary Facilities and Tuition Rev., 6 1/2% due 4/1/2011 ........ NR/AAA 1,624,950
2,500,000 Washington Suburban Sanitary District, MD, 6 1/2% due 1/1/2016 ........................... Aa1/AA 2,684,450
------------
Total Municipal Bonds (Cost $52,283,695) -- 97.0% ...................................................... 54,412,595
Variable Rate Demand Notes (Cost $700,000) -- 1.3% ..................................................... 700,000
Other Assets Less Liabilities -- 1.7% .................................................................. 975,684
------------
NET ASSETS -- 100.0% ................................................................................... $ 56,088,279
============
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 5,000,000 Boston, MA Water & Sewer Commission General Rev., 5 1/4% due 11/1/2019 ................... A/A $ 4,737,400
3,000,000 Boston, MA Water & Sewer Commission General Rev., 7.10% due 11/1/2019 .................... Aaa/AAA 3,284,580
5,000,000 Massachusetts Bay Transportation Authority Transportation System Rev.,
6.10% due 3/1/2023 .................................................................... A1/A+ 5,086,100
1,585,000 Massachusetts Education Loan Authority Education Loan Rev., 8% due 6/1/2002 .............. NR/AAA 1,628,286
3,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6% due 7/1/2009 ........................... Aa/AA 3,057,780
2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Daughters of Charity
National Health Systems-- Carney Hospital), 6.10% due 7/1/2014 ........................ Aa/AA 2,530,850
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Newton-Wellesley
Hospital), 6% due 7/1/2018 ............................................................ Aaa/AAA 5,070,650
3,295,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 .................................................................... Aaa/A+ 3,545,288
705,000 Massachusetts Health & Educational Facilities Authority Rev. (Tufts University),
7.40% due 8/1/2018 .................................................................... A1/A+ 753,709
3,500,000 Massachusetts Health &Educational Facilities Authority Rev. (Williams College),
5 3/4% due 7/1/2019 ................................................................... Aa1/AA 3,505,565
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
25
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MASSACHUSETTS SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 2,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
8 1/8% due 7/1/2020 ..................................................................... Baa/BBB $ 2,808,875
2,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Boston College),
6 5/8% due 7/1/2021 ..................................................................... Aaa/AAA 2,152,420
1,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University),
6.35% due 7/1/2022 ...................................................................... NR/AAA 1,043,350
5,000,000 Massachusetts Health & Educational Facilities Authority Rev. (Brigham & Women's
Hospital), 6 3/4% due 7/1/2024 .......................................................... A1/A+ 5,241,800
7,500,000 Massachusetts Health & Educational Facilities Authority Rev. (Harvard University),
5 5/8% due 11/1/2028 .................................................................... Aaa/AAA 7,384,575
1,600,000 Massachusetts Housing Finance Agency Rev. (Residential Development),
6 1/4% due 11/15/2012 ................................................................... Aaa/AAA 1,632,496
4,705,000 Massachusetts Housing Finance Agency Rev. (Single Family Housing),
7.30% due 6/1/2014 ...................................................................... Aa/A+ 4,811,709
3,195,000 Massachusetts Industrial Finance Agency Rev. (Phillips Academy), 5 3/8% due 9/1/2023 ....... Aa1/AA 3,040,138
3,000,000 Massachusetts Industrial Finance Agency Rev. (College of the Holy Cross),
5 5/8% due 3/1/2026 ..................................................................... Aaa/AAA 2,959,500
2,000,000 Massachusetts Industrial Finance Agency Electric Utility Rev. (Nantucket Electric
Company Project), 5 7/8% due 7/1/2017* .................................................. Aaa/AAA 1,998,600
755,000 Massachusetts Municipal Wholesale Electric Company Power Supply System Rev.,
6 3/4% due 7/1/2017 ..................................................................... Baa/BBB+ 789,602
2,450,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan), 6% due 6/1/2013 .......... A1/AA 2,482,585
2,500,000 Massachusetts Special Obligation Rev. (Highway Improvement Loan),
5.80% due 6/1/2014 ...................................................................... A1/AA- 2,512,625
10,000,000 Massachusetts State Consolidated Loan GOs, 5 1/8% due 11/1/2013 ............................. Aaa/AAA 9,461,400
8,475,000 Massachusetts State Port Authority Rev., 7 1/8% due 7/1/2012 ................................ Aa/AA 8,560,089
5,500,000 Massachusetts State Water Resources Authority Rev., 6% due 8/1/2024 ........................ Aaa/AAA 5,568,750
5,000,000 Massachusetts Turnpike Authority Turnpike Rev., 5 1/8% due 1/1/2023 ......................... Aaa/AAA 4,578,750
730,000 Puerto Rico Electric Power Authority Power Rev., 7 1/8% due 7/1/2014 ........................ Baa1/BBB 786,940
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ........... Baa1/A 947,770
4,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 ........... Baa1/A 3,784,480
2,750,000 Puerto Rico Port Authority Rev., 6% due 7/1/2021* .......................................... Aaa/AAA 2,758,690
------------
Total Municipal Bonds (Cost $105,809,930) -- 97.5% ....................................................... 108,505,352
Variable Rate Demand Notes (Cost $1,200,000) -- 1.1% ..................................................... 1,200,000
Other Assets Less Liabilities -- 1.4% .................................................................... 1,571,221
------------
NET ASSETS -- 100.0% ..................................................................................... $111,276,573
============
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
26
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MICHIGAN SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 5,000,000 Capital Region Airport Authority, MI Airport Rev., 6.70% due 7/1/2021* ................... Aaa/AAA $ 5,342,100
5,000,000 Clarkston Community Schools, MI GOs, 5 3/4% due 5/1/2016 ................................. Aaa/AAA 5,007,000
5,000,000 Detroit, MI Distributable State Aid GOs, 7.20% due 5/1/2009 .............................. Aaa/AAA 5,434,200
6,000,000 Detroit, MI Water Supply System Rev., 6 1/4% due 7/1/2012 ................................ Aaa/AAA 6,276,480
3,000,000 Grand Haven, MI Electric System Rev., 5 1/4% due 7/1/2013 ................................ Aaa/AAA 2,858,370
7,000,000 Grand Rapids, MI Water Supply System Rev., 5 3/4% due 1/1/2018 ........................... Aaa/AAA 6,973,750
1,000,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2012 ................................................. Aaa/AAA 1,046,720
1,500,000 Grand Traverse County, MI Hospital Finance Authority (Munson Healthcare
Obligated Group), 6 1/4% due 7/1/2022 ................................................. Aaa/AAA 1,558,575
3,000,000 Holland School District, MI GOs (School Building and Site Bonds), 7 3/8% due 5/1/2019 .... NR/NR 3,172,560
3,000,000 Jackson County, MI Hospital Finance Authority Rev. (W.A. Foote Memorial Hospital),
7 1/4% due 6/1/2012 ................................................................... NR/NR 3,120,510
5,000,000 Kent County, MI Airport Rev., 6.10% due 1/1/2025* ........................................ Aa/AAA 5,094,800
5,000,000 Kent County, MI Refuse Disposal System GOs, 8.40% due 11/1/2010 .......................... Aa/AAA 5,316,600
2,775,000 Kentwood, MI Public Schools Building & Site GOs, 6.40% due 5/1/2015 ...................... Aa/A+ 2,903,538
3,000,000 Lansing, MIBuilding Authority Rev., 5.60% due 6/1/2019 ................................... A1/AA+ 2,962,590
3,250,000 Marquette, MIHospital Finance Authority Hospital Rev. (Marquette General Hospital),
6.10% due 4/1/2019 .................................................................... Aaa/AAA 3,311,880
3,000,000 Michigan Public Power Agency Rev. (Belle River Project), 5 1/4% due 1/1/2018 ............. A1/AA- 2,817,060
4,000,000 Michigan State Building Authority Rev., 6 1/4% due 10/1/2020 ............................. A1/AA- 4,113,960
1,750,000 Michigan State Comprehensive Transportation Rev., 7 5/8% due 5/1/2011 .................... A1/AA- 1,865,045
6,500,000 Michigan State GOs (Environmental Protection Program), 5.40% due 11/1/2019 ............... Aa/AA 6,250,985
4,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
5 1/4% due 3/1/2014 ................................................................... A1//A+ 3,723,280
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 3/4% due 5/15/2016 .................................................................. Aaa/AAA 4,953,200
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Henry Ford Health System),
5 3/4% due 9/1/2017 ................................................................... Aaa/AAA 4,951,750
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Detroit Medical Center),
6 1/2% due 8/15/2018 .................................................................. A/A 5,190,550
1,250,000 Michigan State Hospital Finance Authority Hospital Rev. (Crittenton Hospital),
6 3/4% due 3/1/2020 ................................................................... Aaa/AAA 1,341,888
2,000,000 Michigan State Hospital Finance Authority Hospital Rev. (St. John Hospital),
5 1/4% due 5/15/2026 .................................................................. Aaa/AAA 1,863,740
5,000,000 Michigan State Hospital Finance Authority Hospital Rev. (Sparrow Obligated Group),
6% due 11/15/2036 ..................................................................... Aaa/AAA 5,012,400
2,500,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.80% due 12/1/2016 ................................................................... NR/AA+ 2,607,600
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
27
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MICHIGAN SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 5,000,000 Michigan State Housing Development Authority Rev. (Rental Housing),
6.65% due 4/1/2023 .................................................................... NR/A+ $ 5,165,700
4,000,000 Michigan State Housing Development Authority Rev. (Single Family Mortgage),
6.05% due 12/1/2027 ................................................................... NR/AA+ 3,988,440
3,000,000 Michigan State Strategic Fund Pollution Control Rev. (Detroit Edison Company),
6 1/2% due 2/15/2016 .................................................................. Aaa/AAA 3,191,220
6,000,000 Michigan State Strategic Fund Pollution Control Rev. (General Motors Corp.),
6.20% due 9/1/2020 .................................................................... A3/A- 6,086,100
7,500,000 Michigan State Trunk Line Rev., 5.80% due 11/15/2024 ..................................... Aaa/AAA 7,499,400
2,000,000 Midland, MI Water Supply System Rev., 7.20% due 4/1/2010 ................................. A/A 2,171,400
5,000,000 University of Michigan Hospital Rev., 6 3/8% due 12/1/2024 ............................... Aa/AA 5,106,500
5,000,000 Wayne, MI State University Rev., 5.65% due 11/15/2015 .................................... Aaa/AAA 4,879,800
3,000,000 Wyandotte, MI Electric Rev., 6 1/4% due 10/1/2017 ........................................ Aaa/AAA 3,116,550
------------
Total Municipal Bonds (Cost $140,693,987) -- 97.7% ..................................................... 146,276,241
Variable Rate Demand Notes (Cost $900,000) -- 0.6% ..................................................... 900,000
Other Assets Less Liabilities -- 1.7% .................................................................. 2,488,071
------------
NET ASSETS -- 100.0% ................................................................................... $149,664,312
============
</TABLE>
MINNESOTA SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 6,250,000 Becker, MN Pollution Control Rev. (Northern States Power Company),
6.80% due 4/1/2007 .................................................................... A2/A+ $ 6,630,438
2,000,000 Breckenridge, MN Hospital Facility Rev. (Franciscan Sisters Health Care, Inc.),
9 3/8% due 9/1/2017 ................................................................... NR/NR 2,131,560
1,500,000 Buffalo, MNIndependent School District GOs, 6.15% due 2/1/2022 ........................... Aaa/AAA 1,533,735
3,000,000 Dakota County, MN GOs Capital Improvement, 7.30% due 2/1/2008 ............................ Aaa/NR 3,120,960
5,000,000 Edina, MN Housing Development Rev. (Edina Park Plaza Project), 7.70% due 12/1/2028 ....... Aa/NR 5,260,650
3,545,000 Fridley, MNIndependent School District GOs, 5.35% due 2/1/2021 ........................... Aa/AAA 3,386,964
2,000,000 Goodhue County, MN Hospital Facilities Rev. (St. John's Regional Health Center),
8 3/4% due 9/1/2016 ................................................................... NR/NR 2,124,780
1,200,000 Lakeville, MN Independent School District No. 194 GOs, 6.70% due 2/1/2015 ................ Aaa/AAA 1,258,368
7,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2003 ..................................................................... Aaa/AAA 5,329,125
5,500,000 Minneapolis, MN Community Development Agency Tax Increment Rev., Zero Coupon
Bond due 9/1/2004 ..................................................................... Aaa/AAA 3,693,910
1,400,000 Minneapolis-St. Paul Metropolitan Area (Metropolitan Council of the Twin Cities), MN,
5 1/2% due 12/1/2012 .................................................................. Aaa/AAA 1,393,952
5,000,000 Minneapolis-St. Paul, MN Housing & Redevelopment Authority Health Care Rev
(Children's Health Care), 5 1/2% due 8/15/2025 ........................................ Aaa/AAA 4,790,650
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
28
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MINNESOTA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,500,000 Minneapolis, MNGOs, 6% due 3/1/2016 ...................................................... Aaa/AAA $ 1,530,555
2,000,000 Minneapolis, MN Hospital Facilities Rev. (Lifespan, Inc.-- Abbott-Northwestern
Hospital, Inc.), 7 7/8% due 12/1/2014 ................................................. Aaa/AAA 2,127,460
1,500,000 Minneapolis, MN Tax Increment Rev., 7% due 3/1/2003 ...................................... Aaa/AAA 1,551,135
940,000 Minnesota Housing Finance Agency (Housing Development), 6 1/4% due 2/1/2020 .............. Aa/AA 950,143
5,000,000 Minnesota Housing Finance Agency (Single Family Mortgage), 6.85% due 1/1/2024* ........... Aa/AA+ 5,181,450
5,500,000 Minnesota Public Facilities Authority Water Pollution Control Rev., 7.10% due 3/1/2012 ... Aaa/AAA 6,042,740
5,000,000 Minnesota State GOs, 5.70% due 5/1/2016 .................................................. Aaa/AA+ 5,058,600
5,000,000 North Saint Paul/Maplewood, MN Independent School District GOs, 5 1/8% due 2/1/2025 ...... Aa1/AA 4,578,200
5,000,000 Northern Municipal Power Agency, MN Electric System Rev., 7 1/4% due 1/1/2016 ............ A/A 5,332,450
2,500,000 Northern Municipal Power Agency, MN Electric System Rev., 7.40% due 1/1/2018 ............. Aaa/AAA 2,713,625
2,500,000 Northfield, MN Independent School District GOs, 5 1/4% due 2/1/2017 ...................... Aa1/NR 2,374,025
4,000,000 Plymouth, MN Health Facilities Rev. (Westhealth Project), 6 1/8% due 6/1/2024 ............ Aaa/AAA 4,118,680
2,000,000 Ramsey & Washington Counties, MN Resource Recovery Rev. (Northern States Power
Company Project), 6 3/4% due 12/1/2006 ................................................ A1/AA- 2,099,840
4,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
7.45% due 11/15/2006 .................................................................. NR/AA+ 4,418,840
4,500,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2014 ................................................................. NR/AA+ 4,715,415
1,000,000 Rochester, MN Health Care Facilities Rev. (Mayo Foundation/Mayo Medical Center),
6 1/4% due 11/15/2021 ................................................................. NR/AA+ 1,037,260
2,575,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2016 ....................... Aaa/AA 2,587,772
2,715,000 Rochester, MN Independent School District GOs, 5 5/8% due 2/1/2017 ....................... Aaa/AA 2,728,466
1,000,000 Saint Cloud, MNHospital Facilities Rev. (Saint Cloud Hospital), 5% due 7/1/2020 .......... Aaa/AAA 907,010
2,000,000 Saint Cloud, MN Hydroelectric Generation Facility Gross Rev., 7 3/8% due 12/16/2018 ...... NR/A- 2,049,900
264,312 Saint Paul, MN Science Museum Facilities Rev. (Science Museum of Minnesota Project),
7 1/2% due 12/15/2001 ................................................................. NR/AAA 279,697
45,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2000 .................................................................. NR/CCC 43,146
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2000 .................................................................. NR/CCC 4,786
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2000 .................................................................. NR/CCC 52,642
50,000 Saint Paul Port Authority, MN Industrial Development Rev. Series E,
9 1/8% due 10/1/2001 .................................................................. NR/CCC 47,080
10,000 Saint Paul Port Authority, MN Industrial Development Rev. Series H,
9 1/8% due 12/1/2001 .................................................................. NR/CCC 9,399
55,000 Saint Paul Port Authority, MN Industrial Development Rev. Series I,
9 1/8% due 12/1/2001 .................................................................. NR/CCC 51,693
5,000 Saint Paul Port Authority, MN Industrial Development Rev. Series L,
9 3/4% due 12/1/2001 .................................................................. NR/CCC 4,821
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
29
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
MINNESOTA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 50,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series E,
9 1/8% due 10/1/2002 .................................................................... NR/CCC $ 46,660
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series H,
9 1/8% due 12/1/2002 .................................................................... NR/CCC 9,316
60,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series I,
9 1/8% due 12/1/2002 .................................................................... NR/CCC 55,894
10,000 Saint Paul Port Authority, MNIndustrial Development Rev. Series L,
9 3/4% due 12/1/2002 .................................................................... NR/CCC 9,593
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018 ..................................................................... A/A+ 1,481,730
750,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
5 3/4% due 1/1/2018 ..................................................................... Aaa/AAA 754,507
1,500,000 Southern Minnesota Municipal Power Agency-- Power Supply System Rev.,
4 3/4% due 1/1/2016 ..................................................................... A/A+ 1,315,485
3,500,000 Washington County, MN GOs, 5.90% due 2/1/2010 .............................................. Aa/AA- 3,564,015
3,000,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 7% due 1/1/2013 .............. A1/A 3,083,520
3,090,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 5 1/2% due 1/1/2015 .......... A1/A 3,006,477
9,580,000 Western Minnesota Municipal Power Agency-- Power Supply Rev., 6 3/8% due 1/1/2016 .......... Aaa/AAA 10,267,173
Total Municipal Bonds (Cost $120,753,949) -- 98.9% ....................................................... 126,846,292
Other Assets Less Liabilities -- 1.1% .................................................................... 1,362,726
------------
NET ASSETS -- 100.0% ..................................................................................... $128,209,018
============
</TABLE>
MISSOURI SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 2,000,000 Columbia, MO Water and Electric System Improvement Rev., 6 1/8% due 10/1/2012 ..... A1/AA $ 2,047,560
1,500,000 Hannibal, MO Industrial Development Authority Health Facilities Rev
(Hannibal Regional Hospital), 5 3/4% due 3/1/2022 .............................. Aaa/AAA 1,490,010
3,775,000 Kansas City, MO Water Rev., 6 1/4% due 12/1/2009 .................................. Aa/NR 3,910,145
1,500,000 Kansas City School District Building Corporation, MO Leasehold Rev.,
7.90% due 2/1/2008 ............................................................. Aaa/AAA 1,602,705
1,000,000 Liberty, MO Waterworks Improvement Rev., 6.30% due 10/1/2012 ...................... Aaa/AAA 1,041,470
2,000,000 Little Blue Valley, MO Sewer District Rev., 7 1/4% due 10/1/2007 .................. Aaa/AAA 2,104,600
1,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7 3/8% due 3/1/2006 ............................................................ Aaa/AAA 1,048,290
2,000,000 Missouri School Boards Pooled Financing Program Certificates of Participation,
7% due 3/1/2006 ................................................................ Aaa/AAA 2,089,700
1,000,000 Missouri State Environmental Improvement & Energy Resources Authority Rev
(State Revolving Fund Program), 6.55% due 7/1/2014 ............................. Aa/NR 1,052,560
2,500,000 Missouri State Environmental Improvement & Energy Resources Authority Rev
(Union Electric Company Project), 5.45% due 10/1/2028* ......................... A1/AA- 2,332,200
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
30
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
MISSOURI SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 2,500,000 Missouri State Environmental Improvement & Energy Resources Authority -- Water
Pollution Control Rev. (State Revolving Fund Program), 5.40% due 7/1/2015 ......... Aa/NR $ 2,430,875
2,000,000 Missouri State GOs, 5 5/8% due 4/1/2017 .............................................. Aaa/AAA 2,020,540
2,500,000 Missouri State Health & Educational Facilities Authority Rev. (Lester E. Cox Medical
Centers Project), 5 1/4% due 6/1/2015 ............................................. Aaa/AAA 2,399,275
1,500,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 6 1/4% due 6/1/2015 ..................................... Aa/AA 1,518,960
3,500,000 Missouri State Health & Educational Facilities Authority Rev. (SSM Health Care),
6 1/4% due 6/1/2016 ............................................................... Aaa/AAA 3,642,170
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 7 1/4% due 6/1/2019 ..................................... Aaa/AA 1,089,030
1,000,000 Missouri State Health & Educational Facilities Authority Rev. (Sisters of Mercy Health
System, St. Louis, Inc.), 5% due 6/1/2019 ......................................... Aa/AA 896,250
2,500,000 Missouri State Health Facilities Rev. (Barnes-Jewish, Inc./Christian Health Services),
5 1/4% due 5/15/2021 .............................................................. Aa/AA 2,314,600
860,000 Missouri State Housing Development Commission Housing Development Bonds
(Federally Insured Mortgage Loans), 6% due 10/15/2019 ............................. Aa/AA+ 865,547
1,500,000 St. Louis, MO Industrial Development Authority Pollution Control Rev. (Anheuser-Busch
Companies, Inc. Project), 6.65% due 5/1/2016 ...................................... A1/AA- 1,696,800
1,500,000 St. Louis, MO Municipal Finance Corporation City Justice Center Leasehold
Improvement Rev., 5.95% due 2/15/2016 ............................................. Aaa/AAA 1,527,180
2,400,000 Southeast Missouri Correctional Facility Lease Rev. (Missouri State Project),
5 3/4% due 10/15/2016 ............................................................. Aa/AA 2,369,040
2,000,000 Springfield, MO Public Utility Rev., 5 1/4% due 3/1/2007 ............................. Aa/AA 2,005,800
2,500,000 Springfield, MO Waterworks Rev., 5.60% due 5/1/2023 .................................. Aa/A+ 2,465,850
2,750,000 University of Missouri University Revenues Refunding & Improvement Systems Facilities,
5 1/2% due 11/1/2023 .............................................................. Aa/AA+ 2,648,718
-----------
Total Municipal Bonds (Cost $46,989,665) -- 96.2% .................................................. 48,609,875
Variable Rate Demand Notes (Cost $1,100,000) -- 2.2% ............................................... 1,100,000
Other Assets Less Liabilities -- 1.6% .............................................................. 796,556
-----------
NET ASSETS -- 100.0% ............................................................................... $50,506,431
===========
</TABLE>
NEW YORK SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 5,000,000 Metropolitan Transportation Authority, NY (Commuter Facilities Rev.),
6 1/2% due 7/1/2024 ................................................................... Baa1/BBB+ $ 5,200,700
2,900,000 Metropolitan Transportation Authority, NY (Transit Facilities Rev.),
6.10% due 7/1/2026 .................................................................... Aaa/AAA 2,973,080
2,500,000 Municipal Assistance Corporation for the City of New York, NY, 6.90% due 7/1/2007 ........ Aa/AA- 2,594,125
4,000,000 New York City Municipal Water Finance Authority, NY Water & Sewer System Rev.,
6 1/4% due 6/15/2020 .................................................................. A/A- 4,119,160
2,435,000 New York City, NY GOs, 7 1/4% due 8/15/2024 .............................................. Baa1/BBB+ 2,572,285
65,000 New York City, NY GOs, 7 1/4% due 8/15/2024 .............................................. Baa1/BBB+ 71,934
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
31
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
NEW YORK SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 3,500,000 New York State Dormitory Authority Rev. (Rockefeller University), 7 3/8% due 7/1/2014 ..... Aaa/AAA $ 3,745,105
5,000,000 New York State Dormitory Authority Rev. (Fordham University), 5 3/4% due 7/1/2015 ......... Aaa/AAA 4,982,450
5,000,000 New York State Dormitory Authority Rev. (Skidmore College), 5 3/8% due 7/1/2023 ........... Aaa/AAA 4,745,000
4,500,000 New York State Energy Research & Development Authority Electric Facilities Rev
(Consolidated Edison Co. NY), 6.10% due 8/15/2020 ...................................... Aaa/AAA 4,610,025
1,500,000 New York State Energy Research & Development Authority Gas Facilities Rev
(Brooklyn Union Gas Co. Project), 5 1/2% due 1/1/2021 .................................. Aaa/AAA 1,456,860
2,500,000 New York State Energy Research &Development Authority Gas Facilities Rev
(Brooklyn Union Gas), 6 3/4% due 2/1/2024* ............................................. Aaa/AAA 2,691,875
3,000,000 New York State Environmental Facilities Corporation Pollution Control Rev
(State Water-- Revolving Fund), 6.90% due 11/15/2015 ................................... Aaa/AAA 3,394,530
3,000,000 New York State Housing Finance Agency Rev. (Phillips Village Project),
7 3/4% due 8/15/2017* .................................................................. A/NR 3,321,330
3,000,000 New York State Local Government Assistance Corp., 6% due 4/1/2024 ......................... A/A 3,016,230
4,000,000 New York State Medical Care Facilities Finance Agency Rev. (The Hospital for Special
Surgery), 6 3/8% due 8/15/2024 ......................................................... Aa/AA 4,125,240
2,000,000 New York State Mortgage Agency (Homeownership Mortgage), 7 1/2% due 4/1/2016 .............. Aa/NR 2,109,200
4,000,000 New York State Power Authority General Purpose Rev., 6 1/2% due 1/1/2019 .................. Aaa/AAA 4,281,760
4,000,000 New York State Thruway Authority Rev., 6 1/4% due 4/1/2014 ................................ Baa1/BBB 4,036,760
4,000,000 New York State Thruway Authority General Rev., 6% due 1/1/2025 ............................ Aaa/AAA 4,060,760
2,500,000 Niagara Falls, NY Bridge Commission Toll Bridge System Rev., 5 1/4% due 10/1/2015 ......... Aaa/AAA 2,404,100
4,000,000 Onondaga County, NY Industrial Development Agency Sewer Facilities Rev
(Bristol Myers-Squibb Co. Project), 5 3/4% due 3/1/2024 ................................ Aaa/AAA 4,031,240
2,250,000 Port Authority of New York and New Jersey Consolidated Rev., 6 1/8% due 6/1/2094 .......... A1/AA- 2,346,750
5,000,000 United Nations Development Corporation, NY (A Public Benefit Corporation of the State
of New York Senior Lien), 6% due 7/1/2026 .............................................. A/NR 4,965,150
----------
Total Municipal Bonds (Cost $79,357,217) -- 97.6% ....................................................... 81,855,649
Variable Rate Demand Notes (Cost $900,000) -- 1.1% ...................................................... 900,000
Other Assets Less Liabilities -- 1.3% ................................................................... 1,115,909
----------
NET ASSETS -- 100.0% .................................................................................... $ 83,871,558
============
</TABLE>
OHIO SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 2,000,000 Barberton, OH Sewer System Mortgage Rev., 6 5/8% due 12/1/2006 ........................... Aaa/AAA $ 2,105,480
2,250,000 Beavercreek Local School District, OH GOs (School Improvement Bonds),
5.70% due 12/1/2020 ................................................................... Aaa/AAA 2,238,120
3,450,000 Big Walnut Local School District, OH School Building Construction & Improvement
GOs, 7.20% due 6/1/2007 ............................................................... Aaa/AAA 3,863,069
3,000,000 Clermont County, OH Hospital Facilities Rev. (Mercy Health System), 5 7/8% due 1/1/2015 .. Aaa/AAA 3,006,480
2,000,000 Cleveland, OH Waterworks Improvement Rev., 6% due 1/1/2017 ............................... A1/A+ 1,986,120
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
32
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
OHIO SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 5,000,000 Columbus, OH GOs, 6 1/2% due 1/1/2010 .................................................. Aaa/AAA $ 5,373,700
4,500,000 Columbus, OH Municipal Airport Authority Rev. (Port Columbus International
Airport Project), 6% due 1/1/2020* .................................................. Aaa/AAA 4,518,495
3,000,000 Dayton, OH Water System Mortgage Rev., 6 3/4% due 12/1/2010 ............................ Aaa/AAA 3,146,880
7,000,000 Erie County, OH Franciscan Services Corp. Rev. (Providence Hospital Inc.),
6% due 1/1/2013 ..................................................................... NR/A- 6,787,480
7,750,000 Franklin County, OH GOs, 5 3/8% due 12/1/2020 .......................................... Aaa/AAA 7,509,982
7,500,000 Franklin County, OH Hospital Rev. (Riverside United Methodist Hospital),
5 3/4% due 5/15/2020 ................................................................ Aa/NR 7,385,175
5,000,000 Hamilton County, OH Health Care System Rev. (Sisters of Charity Health Care),
6 1/4% due 5/15/2014 ................................................................ Aaa/AAA 5,226,200
2,500,000 Hamilton County, OH Sewer System Rev., 5 1/2% due 12/1/2017 ............................ Aaa/AAA 2,465,950
8,000,000 Hamilton, OH Electric System Mortgage Rev., 6% due 10/15/2023 .......................... Aaa/AAA 8,147,680
4,000,000 Hudson Local School District, OH GOs, 7.10% due 12/15/2013 ............................. A1/NR 4,447,600
1,095,000 Lake County, OH Hospital Improvement Rev. (Lake Hospital System Inc.),
8% due 1/1/2013 ..................................................................... Aaa/AAA 1,127,138
8,000,000 Lucas County, OH Hospital Improvement Rev. (The Toledo Hospital),
5% due 11/15/2010 ................................................................... Aaa/AAA 7,557,600
1,000,000 Montgomery County, OH Rev. (Sisters of Charity Health Care Systems, Inc.),
6 5/8% due 5/15/2021 ................................................................ Aaa/AAA 1,066,790
5,000,000 Mount Vernon, OH Hospital Rev. (Knox Community Hospital), 7 7/8% due 6/1/2012 .......... NR/NR 5,154,500
2,500,000 Northeast, OH Regional Sewer District Wastewater Rev., 5.60% due 11/15/2013 ............ Aaa/AAA 2,503,925
5,000,000 Ohio Air Quality Development Authority Pollution Control Rev. (Ohio Edison
Company Project), 7.45% due 3/1/2016 ................................................ Aaa/AAA 5,513,050
2,000,000 Ohio Air Quality Development Authority Rev. (Cincinnati Gas & Electric
Company Project), 5.45% due 1/1/2024 ................................................ Aaa/AAA 1,915,060
6,500,000 Ohio Air Quality Development Authority Rev. (JMG Project), 6 3/8% due 1/1/2029* ........ Aaa/AAA 6,846,190
2,000,000 Ohio State Building Authority Workers' Compensation Facilities
(William Green Building), 4 3/4% due 4/1/2014 ....................................... A/AA- 1,775,060
3,000,000 Ohio State GOs Infrastructure Improvement, 6 1/2% due 8/1/2011 ......................... Aa1/AA+ 3,221,250
1,500,000 Ohio State Higher Educational Facilities Commission Mortgage Rev
(University of Dayton Project), 7 1/4% due 12/1/2012 ................................ Aaa/AAA 1,675,155
3,000,000 Ohio State Higher Educational Facilities Commission Rev. (Oberlin College Project),
5 3/8% due 10/1/2015 ................................................................ NR/AA 2,949,180
2,000,000 Ohio State Liquor Profits Rev., 6.85% due 3/1/2000 ..................................... Aaa/AAA 2,145,240
7,000,000 Ohio State Public Facilities Commission Rev. (Higher Education Capital Facilities),
6.30% due 5/1/2006 .................................................................. Aaa/AAA 7,447,440
2,000,000 Ohio State Water Development Authority Rev. (Safe Water), 6 3/4% due 12/1/2007 ......... Aaa/AAA 2,098,240
2,570,000 Ohio State Water Development Authority Rev. (Safe Water), 9 3/8% due 12/1/2010 ......... Aaa/AAA 3,180,735
2,500,000 Ohio State Water Development Authority Solid Waste Disposal Rev. (North Star BHP
Steel, L.L.C. Project-- Cargill, Incorporated, Guarantor), 6.30% due 9/1/2020* ...... Aa3/AA- 2,587,650
8,000,000 Ohio State Water Development Authority Water Development Rev. (Dayton Power &
Light Co. Project), 6.40% due 8/15/2027 ............................................. Aa3/AA- 8,354,320
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
33
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
OHIO SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 8,000,000 Ohio Turnpike Commission, OH Turnpike Rev., 5.70% due 2/15/2017 .......................... Aaa/AAA $ 8,019,360
2,955,000 Pickerington Local School District, OH School Building Construction GOs,
8% due 12/1/2005 ...................................................................... Aaa/AAA 3,389,710
4,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036 ......... Baa1/A 3,784,480
775,000 Toledo, OH Sewer System Rev., 7 3/4% due 11/15/2017 ...................................... Aaa/AAA 845,176
560,000 Toledo, OH Waterworks Rev., 7 3/4% due 11/15/2017 ........................................ Aaa/AAA 610,708
2,500,000 Twinsburg City School District, OH School Improvement GOs,
5.90% due 12/1/2021 ................................................................... Aaa/AAA 2,532,275
3,000,000 University of Toledo, OH General Receipts Bonds, 7.10% due 6/1/2010 ...................... Aaa/AAA 3,303,240
2,000,000 Worthington City School District, OH School Building Construction & Improvement
GOs, 8 3/4% due 12/1/2002 ............................................................. Aaa/AAA 2,289,400
------------
Total Municipal Bonds (Cost $152,982,046) -- 98.1% ..................................................... 160,101,283
Variable Rate Demand Notes (Cost $600,000) -- 0.4% ..................................................... 600,000
Other Assets Less Liabilities -- 1.5% .................................................................. 2,552,234
------------
NET ASSETS -- 100.0% ................................................................................... $163,253,517
============
</TABLE>
OREGON SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<S> <C> <C> <C>
$ 1,000,000 Albany, OR GOs Water Bonds, 6 5/8% due 11/1/2009 ......................................... Aaa/AAA $ 1,002,340
2,000,000 Chemeketa, OR Community College District GOs, 5.95% due 6/1/2016 ......................... Aaa/AAA 2,035,100
1,000,000 Clackamas County, OR Hospital Facility Authority Rev. (Kaiser Permanente),
6 1/4% due 4/1/2021 ................................................................... Aa3/AA 1,009,550
1,500,000 Clackamas & Washington Counties, OR School District No. 3JT GOs
(West Linn-Wilsonville), 5 7/8% due 8/1/2009 .......................................... A1/AA- 1,532,130
1,000,000 Deschutes County Hospital Facility Authority, OR (St. Charles Medical Center),
7.60% due 1/1/2013 .................................................................... A1/NR 1,039,110
400,000 Emerald People's Utility District, OR Electric System Rev., 7.20% due 11/1/2006 .......... Aaa/AAA 401,120
2,000,000 Eugene, OR Electric Utility Rev., 5.80% due 8/1/2022 ..................................... Aaa/AAA 1,997,160
1,500,000 Eugene, OR Trojan Nuclear Project Rev., 5.90% due 9/1/2009 ............................... Aa1/AA- 1,500,240
730,000 Eugene, OR Water Utility System Rev., 6.55% due 8/1/2003 ................................. A1/AA- 746,257
1,000,000 Metropolitan Service District, OR GOs (Oregon Convention Center),
6 1/4% due 1/1/2013 ................................................................... Aa/AA+ 1,051,260
1,250,000 Multnomah County School District, OR GOs, 6.80% due 12/15/2004 ........................... Aa/A+ 1,274,362
1,750,000 Multnomah County School District, OR GOs, 5 1/2% due 6/1/2015 ............................ A1/A+ 1,743,788
2,000,000 North Clackamas Parks & Recreation District-Clackamas County, OR Rev
(Recreational Facilities), 5.70% due 4/1/2013 ......................................... NR/A- 1,985,220
2,000,000 North Wasco County People's Utility District-Wasco County, OR Rev
(Bonneville Power Administration), 5.20% due 12/1/2024 ................................ Aa1/AA- 1,821,400
2,500,000 Ontario, OR Hospital Facility Authority Health Facilities Rev. Catholic Health Corporation
(Dominican Sisters of Ontario Inc., dba Holy Rosary Hospital Project), 7% due 6/1/2012. NR/NR 2,576,075
</TABLE>
- ----------
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
34
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
OREGON SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 750,000 Ontario, OR Hospital Facility Authority Health Facilities Rev. Catholic Health
Corporation (Dominican Sisters of Ontario Inc., dba Holy Rosary Medical
Center Project), 6.10% due 11/15/2017 ................................................. A1/AA- $ 735,120
1,000,000 Oregon Department of Transportation Regional Light Rail Extension Rev.,
6.20% due 6/1/2008 .................................................................... Aaa/AAA 1,068,880
2,850,000 Oregon Health, Housing, Educational &Cultural Facilities Authority Rev.
(Reed College Project), 5 3/8% due 7/1/2025 ........................................... NR/A+ 2,677,461
1,250,000 Oregon Health Sciences University Rev., 5 1/4% due 7/1/2028 .............................. Aaa/AAA 1,174,725
40,000 Oregon Housing Agency Mortgage Rev. (Single Family Mortgage Program),
7 3/8% due 7/1/2020* .................................................................. Aa1/NR 40,943
2,000,000 Oregon Housing & Community Services Department Housing & Finance Rev.
(Assisted or Insured Multi-Unit Program), 5 3/4% due 7/1/2012 ......................... A1/A+ 1,979,380
945,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 5.65% due 7/1/2019* ................................................ Aa/NR 900,765
905,000 Oregon Housing & Community Services Department Mortgage Rev. (Single Family
Mortgage Program), 7% due 7/1/2022* ................................................... Aa/NR 938,784
1,785,000 Oregon State Fair & Exposition Center Rev., 7 3/8% due 10/1/2006 ......................... NR/NR 1,785,178
500,000 Oregon State GOs (Veterans' Welfare), 9% due 10/1/2006 ................................... Aa/AA 654,995
1,500,000 Oregon State GOs (Veterans' Welfare), 5 7/8% due 10/1/2018 ............................... Aa/AA 1,513,905
500,000 Oregon State GOs (Alternate Energy Project), 8.40% due 1/1/2008 .......................... Aa/AA 551,785
250,000 Oregon State GOs (Elderly & Disabled Housing), 7.20% due 8/1/2021 ........................ Aa/AA 258,030
1,000,000 Oregon State GOs (Elderly & Disabled Housing), 6.60% due 8/1/2022* ....................... Aa/AA 1,034,380
500,000 Port of Portland, OR International Airport Rev., 6 1/4% due 7/1/2018* .................... Aaa/AAA 512,930
1,000,000 Port of Portland, OR International Airport Rev., 7.10% due 7/1/2021* ..................... Aaa/AAA 1,095,220
500,000 Port of Portland, OR International Airport Rev., 5 3/4% due 7/1/2025* .................... Aaa/AAA 490,980
1,500,000 Port of Portland, OR International Airport Rev., 5 5/8% due 7/1/2026* .................... Aaa/AAA 1,441,710
2,000,000 Portland, OR GOs, 5.60% due 6/1/2014 ..................................................... Aa/NR 2,009,900
1,250,000 Portland, OR Hospital Facilities Authority Rev. (Legacy Health System),
6 5/8% due 5/1/2011 ................................................................... Aaa/AAA 1,341,000
3,000,000 Portland, OR Sewer System Rev., 6% due 10/1/2012 ......................................... Aaa/AAA 3,096,060
1,000,000 Puerto Rico Highway & Transportation Authority Highway Rev., 5 1/2% due 7/1/2019 ......... Baa1/A 947,770
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2% due 7/1/2036 .......... Baa1/A 946,120
655,000 Puerto Rico Housing Finance Corp. (Single Family Mortgage Rev.),
6.85% due 10/15/2023 .................................................................. Aaa/AAA 682,720
1,000,000 Puerto Rico Ports Authority Rev., 7% due 7/1/2014* ....................................... Aaa/AAA 1,098,500
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2013 ................................ A/A+ 990,380
2,600,000 Salem, OR Pedestrian Safety Improvements GOs, 5 3/4% due 5/1/2011 ....................... Aaa/AAA 2,647,788
1,000,000 Tri-County Metropolitan Transportation District of Oregon GOs (Light Rail Extension),
6% due 7/1/2012 ....................................................................... Aa/AA+ 1,021,570
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
35
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
OREGON SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,110,000 Tualatin Development Commission, OR (Urban Renewal & Redevelopment),
7 3/8% due 1/1/2007 ................................................................. Baa1/NR $ 1,126,006
2,000,000 Unified Sewerage Agency Washington County, OR Sewer Rev., 6 1/8% due 10/1/2012 ......... Aaa/AAA 2,080,040
------------
Total Municipal Bonds (Cost $57,048,547) -- 99.4% .................................................... 58,558,137
Variable Rate Demand Notes (Cost $700,000) -- 1.2% ................................................... 700,000
Other Assets Less Liabilities -- (0.6)% .............................................................. (372,870)
------------
NET ASSETS -- 100.0% ................................................................................. $ 58,885,267
============
</TABLE>
SOUTH CAROLINA SERIES
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 1,125,000 Anderson County, SC GOs, 7 3/4% due 4/1/2009 .............................................. A/A $ 1,179,911
2,500,000 Anderson County, SC Hospital Rev. (Anderson Memorial Hospital), 5 1/4% due 2/1/2012 ....... Aaa/AAA 2,383,325
1,500,000 Beaufort-Jasper Water & Sewer Authority, SC Waterworks & Sewer System Rev.,
6 1/2% due 3/1/2013 .................................................................... Aaa/AAA 1,613,700
3,800,000 Berkeley County, SC Water & Sewer Rev., 5.55% due 6/1/2016 ................................ Aaa/AAA 3,741,594
3,000,000 Charleston County, SC Hospital Facilities Rev. (Bon Secours Health System Project),
5 5/8% due 8/15/2025 ................................................................... Aaa/AAA 2,894,070
745,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 2/1/2004 ..................................................................... A1/A 800,339
770,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.15% due 8/1/2004 ..................................................................... A1/A 827,196
800,000 Charleston County, SC Public Facilities Corp. Certificates of Participation,
7.20% due 2/1/2005 ..................................................................... A1/A 862,088
750,000 Charleston, SC Waterworks & Sewer System Rev., 7 3/4% due 1/1/2011 ........................ Aaa/AAA 798,645
2,500,000 Charleston, SC Waterworks & Sewer System Rev., 6% due 1/1/2012 ............................ A1/AA- 2,540,825
1,500,000 Clemson University, SC Student & Faculty Housing Rev., 6.65% due 6/1/2011 ................. Aaa/AAA 1,608,900
1,000,000 Clinton, SC Utility System Rev., 7.20% due 6/1/2011 ....................................... A/NR 1,076,930
6,000,000 Darlington County, SC Industrial Development Rev. (Nucor Corporation Project),
5 3/4% due 8/1/2023* ................................................................... A1/AA- 5,884,500
2,000,000 Darlington County, SC Industrial Development Rev. (Sonoco Products Company Project),
6% due 4/1/2026 ........................................................................ A2/A 2,000,320
2,500,000 Fairfield County, SC Pollution Control Rev. (South Carolina Electric & Gas Company),
6 1/2% due 9/1/2014 .................................................................... A1/A 2,657,750
1,000,000 Georgetown County, SC Pollution Control Facilities Rev. (International Paper Company),
7 3/8% due 6/15/2005 ................................................................... A3/A- 1,065,800
3,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/2% due 5/1/2016 .............. Aa/AA- 2,905,530
2,000,000 Greenville Hospital System, SC Hospital Facilities Rev., 5 1/4% due 5/1/2023 .............. Aa/AA- 1,834,020
3,000,000 Greenwood County, SC Hospital Facilities Rev. (Self Memorial Hospital),
5 7/8% due 10/1/2017 ................................................................... Aaa/AAA 2,994,600
2,425,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2011 .............................. Aaa/AAA 2,639,176
2,600,000 Lancaster County, SC School District GOs, 6.60% due 7/1/2012 .............................. Aaa/AAA 2,822,846
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
36
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
SOUTH CAROLINA SERIES (continued)
<TABLE>
<CAPTION>
FACE RATINGS MARKET
AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ VALUE
------ --------------- ------------ -----
<C> <S> <C> <C>
$ 2,000,000 Lancaster County, SC Waterworks & Sewer System Rev., 5 1/4% due 5/1/2021 ................ Aaa/AAA $1,876,640
2,720,000 Laurens County, SC Combined Utility System Rev., 5% due 1/1/2018 ........................ Aaa/AAA 2,471,310
1,650,000 Laurens County, SC Combined Utility System Rev., 7 5/8% due 1/1/2018 .................... Aaa/AAA 1,770,235
500,000 Laurens County, SC Health Care System, 7.80% due 1/1/2008 ............................... Aaa/AAA 532,160
1,000,000 Lexington County School District No. 001, SC Certificates of Participation (Red Bank/
White Knoll Elementary Project), 7.10% due 9/1/2011 .................................. Aaa/AAA 1,112,710
1,000,000 Medical University South Carolina Hospital Facilities Rev., 5.60% due 7/1/2011 .......... Aaa/AAA 1,012,950
4,800,000 Mount Pleasant, SC Water & Sewer Rev., 6% due 12/1/2020 ................................. Aaa/AAA 4,851,984
2,000,000 Myrtle Beach, SC Waterworks & Sewer System Rev., 5 1/4% due 3/1/2020 .................... Aaa/AAA 1,872,100
1,500,000 North Charleston Sewer District, SC Rev., 6 3/8% due 7/1/2012 ........................... Aaa/AAA 1,643,625
1,500,000 North Charleston Sewer District, SC Rev., 7 3/4% due 8/1/2018 ........................... Aaa/AAA 1,622,580
5,000,000 Oconee County, SC Pollution Control Facilities Rev. (Duke Power Co. Project),
5.80% due 4/1/2014 ................................................................... Aa2/AA- 5,066,900
1,250,000 Piedmont Municipal Power Agency, SC Electric Rev., 6 1/4% due 1/1/2021 .................. Aaa/AAA 1,351,713
4,000,000 Piedmont Municipal Power Agency, SC Electric Rev., 6.30% due 1/1/2022 ................... Aaa/AAA 4,169,200
1,000,000 Puerto Rico Highway &Transportation Authority Highway Rev., 5 1/2%, due 7/1/2036 ........ Baa1/A 946,120
1,000,000 Puerto Rico Telephone Authority Rev., 5 1/2% due 1/1/2022 ............................... A/A+ 962,950
2,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7.45% due 4/1/2021* .................................................................. A1/A- 2,194,680
1,000,000 Richland County, SC Solid Waste Disposal Facilities Rev. (Union Camp Corp. Project),
7 1/8% due 9/1/2021* ................................................................. A1/A- 1,071,700
1,000,000 Rock Hill, SC Combined Utilities System Rev., 8% due 1/1/2018 ........................... Aaa/AAA 1,067,890
5,000,000 Rock Hill, SC Combined Utilities System Rev., 5% due 1/1/2020 ........................... Aaa/AAA 4,527,850
1,000,000 St. Andrews, SC Public Service District Sewer Systems Rev., 7 3/4% due 1/1/2018 ......... Aaa/AAA 1,061,900
6,000,000 SouthCarolina Public Service Authority Rev., 5 7/8% due 1/1/2023 ........................ Aaa/AAA 6,011,580
2,000,000 SouthCarolina State, GOs 4 1/4% due 3/1/2009 ............................................ Aaa/AAA 1,812,320
1,740,000 South Carolina State Housing Authority (Single Family Mortgage Purchase),
6.70% due 7/1/2010 ................................................................... Aaa/AAA 1,770,189
500,000 South Carolina State Housing Finance & Development Authority (Homeownership
Mortgage), 7.55% due 7/1/2011 ........................................................ Aa/AA 525,500
2,305,000 South Carolina State Housing Finance & Development Authority Rental Housing Rev
(North Bluff Project), 5.60% due 7/1/2016 ............................................ NR/AA 2,222,135
1,000,000 South Carolina State Housing Finance & Development Authority (Multi-Family
Development Rev.), 6 7/8% due 11/15/2023 ............................................. Aaa/NR 1,039,200
4,000,000 Spartanburg,SCWater System Rev., 6.10% due 6/1/2021 ..................................... Aaa/AAA 4,078,600
3,000,000 University of South Carolina Rev., 5 3/4% due 6/1/2026 .................................. Aaa/AAA 2,995,470
2,000,000 Western Carolina Regional Sewer Authority, SC Sewer System Rev., 5 1/2% due 3/1/2010 .... Aaa/AAA 2,007,920
----------
Total Municipal Bonds (Cost $105,281,042) -- 98.1% .................................................... 108,782,176
Variable Rate Demand Notes (Cost $700,000) -- 0.6% .................................................... 700,000
Other Assets Less Liabilities -- 1.3% ................................................................. 1,394,751
------------
NET ASSETS -- 100.0% .................................................................................. $110,876,927
============
</TABLE>
- ----------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
37
<PAGE>
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO
SERIES SERIES
----------- -----------
<S> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ................................................ $105,114,294 $50,833,137
Short-term holdings ............................................... 2,900,000 800,000
------------ -----------
108,014,294 51,633,137
Cash ................................................................. 170,064 15,615
Interest receivable .................................................. 1,714,502 977,388
Receivable for Capital Stock sold .................................... 54,154 98,440
Expenses prepaid to shareholder
service agent ..................................................... 10,884 8,393
Receivable for securities sold ....................................... -- 5,000
Other ................................................................ 4,298 2,364
------------ -----------
Total Assets ......................................................... 109,968,196 52,740,337
------------ -----------
LIABILITIES:
Payable for securities purchased ..................................... 6,000,000 --
Dividend payable ..................................................... 187,116 93,867
Payable for Capital Stock repurchased ................................ 76,232 20,442
Accrued expenses, taxes, and other ................................... 111,495 75,899
------------ -----------
Total Liabilities .................................................... 6,374,843 190,208
------------ -----------
Net Assets ........................................................... $103,593,353 $52,550,129
============ ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ............................................................ $ 12,821 $ 7,193
Class D ............................................................ 627 35
Additional paid-in capital ........................................... 105,351,781 51,806,193
Undistributed/accumulated net realized
gain (loss) ....................................................... (3,212,821) (37,933)
Net unrealized appreciation of investments ........................... 1,440,945 774,641
------------ -----------
Net Assets ........................................................... $103,593,353 $52,550,129
============ ===========
NET ASSETS:
Class A ............................................................ $ 98,766,967 $52,295,116
Class D ............................................................ $ 4,826,386 $ 255,013
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ............................................................ 12,820,977 7,192,957
Class D ............................................................ 627,103 35,095
NET ASSET VALUE PER SHARE:
Class A ............................................................ $7.70 $7.27
Class D ............................................................ $7.70 $7.27
</TABLE>
<TABLE>
<CAPTION>
GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ................................................ $51,081,918 $56,440,667 $54,412,595
Short-term holdings ............................................... 400,000 200,000 700,000
----------- ----------- -----------
51,481,918 56,640,667 55,112,595
Cash ................................................................. 44,568 244,646 14,235
Interest receivable .................................................. 951,563 954,068 1,109,581
Receivable for Capital Stock sold .................................... 1,401 -- 6,264
Expenses prepaid to shareholder
service agent ..................................................... 10,512 6,705 8,126
Receivable for securities sold ....................................... 1,000,000 -- 20,000
Other ................................................................ 2,269 2,184 2,521
----------- ----------- -----------
Total Assets ......................................................... 53,492,231 57,848,270 56,273,322
----------- ----------- -----------
LIABILITIES:
Payable for securities purchased ..................................... -- -- --
Dividend payable ..................................................... 93,359 107,873 100,973
Payable for Capital Stock repurchased ................................ 402 6,016 4,533
Accrued expenses, taxes, and other ................................... 76,105 80,700 79,537
----------- ----------- -----------
Total Liabilities .................................................... 169,866 194,589 185,043
----------- ----------- -----------
Net Assets ........................................................... $53,322,365 $57,653,681 $56,088,279
=========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ............................................................ $ 6,481 $ 7,014 $ 6,765
Class D ............................................................ 295 48 256
Additional paid-in capital ........................................... 51,668,780 54,950,313 53,723,904
Undistributed/accumulated net realized
gain (loss) ....................................................... 178,936 755,285 228,454
Net unrealized appreciation of investments ........................... 1,467,873 1,941,021 2,128,900
----------- ----------- -----------
Net Assets ........................................................... $53,322,365 $57,653,681 $56,088,279
=========== =========== ===========
NET ASSETS:
Class A ............................................................ $50,994,847 $57,264,452 $54,041,025
Class D ............................................................ $ 2,327,518 $ 389,229 $ 2,047,254
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ............................................................ 6,481,361 7,014,115 6,765,277
Class D ............................................................ 295,222 47,689 256,089
NET ASSET VALUE PER SHARE:
Class A ............................................................ $7.87 $8.16 $7.99
Class D ............................................................ $7.88 $8.16 $7.99
</TABLE>
- ----------
See Notes to Financial Statements.
38
<PAGE>
================================================================================
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA
SERIES SERIES SERIES
---------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ............................................... $108,505,352 $146,276,241 $ 126,846,292
Short-term holdings .............................................. 1,200,000 900,000 --
------------ ------------ ------------
109,705,352 147,176,241 126,846,292
Cash ................................................................ 422,466 96,761 12,629
Interest receivable ................................................. 1,828,352 2,840,280 1,973,254
Receivable for Capital Stock sold ................................... 6,490 35,574 14,311
Expenses prepaid to shareholder
service agent .................................................... 14,412 17,005 14,513
Receivable for securities sold ...................................... -- -- --
Other ............................................................... 4,722 6,323 6,181
------------ ------------ ------------
Total Assets ........................................................ 111,981,794 150,172,184 128,867,180
------------ ------------ ------------
LIABILITIES:
Payable for securities purchased .................................... -- -- --
Dividend payable .................................................... 207,742 280,244 243,987
Payable for Capital Stock repurchased ............................... 382,723 92,823 280,721
Accrued expenses, taxes, and other .................................. 114,756 134,805 133,454
------------ ------------ ------------
Total Liabilities ................................................... 705,221 507,872 658,162
------------ ------------ ------------
Net Assets .......................................................... $111,276,573 $149,664,312 $ 128,209,018
============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................................... $ 14,004 $ 17,517 $ 16,423
Class D ........................................................... 179 176 265
Additional paid-in capital .......................................... 107,489,251 142,471,611 123,539,415
Undistributed/accumulated net realized
gain (loss) ...................................................... 1,077,717 1,592,754 (1,439,428)
Net unrealized appreciation of investments .......................... 2,695,422 5,582,254 6,092,343
------------ ------------ ------------
Net Assets .......................................................... $111,276,573 $149,664,312 $ 128,209,018
============ ============ ============
NET ASSETS:
Class A ........................................................... $109,871,715 $148,178,147 $ 126,173,076
Class D ........................................................... $ 1,404,858 $ 1,486,165 $ 2,035,942
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ........................................................... 14,003,651 17,517,430 16,423,181
Class D ........................................................... 179,157 175,819 264,940
NET ASSET VALUE PER SHARE:
Class A ........................................................... $7.85 $8.46 $7.68
Class D ........................................................... $7.84 $8.45 $7.68
</TABLE>
<TABLE>
<CAPTION>
MISSOURI NEW YORK OHIO
SERIES SERIES SERIES
------------- ------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings ............................................... $48,609,875 $ 81,855,649 $160,101,283
Short-term holdings .............................................. 1,100,000 900,000 600,000
----------- ------------ -------------
49,709,875 82,755,649 160,701,283
Cash ................................................................ 55,634 31,854 102,181
Interest receivable ................................................. 985,185 1,365,926 2,919,914
Receivable for Capital Stock sold ................................... 11,098 21,898 46,193
Expenses prepaid to shareholder
service agent .................................................... 5,442 10,877 21,257
Receivable for securities sold ...................................... -- -- --
Other ............................................................... 2,307 3,264 6,929
----------- ------------ -------------
Total Assets ........................................................ 50,769,541 84,189,468 163,797,757
----------- ------------ -------------
LIABILITIES:
Payable for securities purchased .................................... -- -- --
Dividend payable .................................................... 88,459 155,790 306,479
Payable for Capital Stock repurchased ............................... 99,916 62,008 89,597
Accrued expenses, taxes, and other .................................. 74,735 100,112 148,164
----------- ------------ -------------
Total Liabilities ................................................... 263,110 317,910 544,240
----------- ------------ -------------
Net Assets .......................................................... $50,506,431 $ 83,871,558 $163,253,517
=========== ============ =============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................................... $ 6,474 $ 10,372 $ 20,051
Class D ........................................................... 73 144 124
Additional paid-in capital .......................................... 48,336,311 81,147,321 154,733,440
Undistributed/accumulated net realized
gain (loss) ...................................................... 543,363 215,289 1,380,665
Net unrealized appreciation of investments .......................... 1,620,210 2,498,432 7,119,237
----------- ------------ -------------
Net Assets .......................................................... $50,506,431 $ 83,871,558 $163,253,517
=========== ============ =============
NET ASSETS:
Class A ........................................................... $49,940,979 $ 82,719,213 $162,242,942
Class D ........................................................... $ 565,452 $ 1,152,345 $ 1,010,575
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A ........................................................... 6,473,717 10,371,788 20,050,368
Class D ........................................................... 73,284 144,353 124,288
NET ASSET VALUE PER SHARE:
Class A ........................................................... $7.71 $7.98 $8.09
Class D ........................................................... $7.72 $7.98 $8.13
</TABLE>
<TABLE>
<CAPTION>
OREGON SOUTH CAROLINA
SERIES SERIES
------ ------
<S> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Long-term holdings $58,558,137 $108,782,176
Short-term holdings 700,000 700,000
----------- ------------
59,258,137 109,482,176
Cash 25,828 25,502
Interest receivable 1,219,258 1,760,507
Receivable for Capital Stock sold 21,540 55,140
Expenses prepaid to shareholder
service agent 8,533 14,343
Receivable for securities sold -- --
Other 2,668 4,530
----------- ------------
Total Assets 60,535,964 111,342,198
----------- ------------
LIABILITIES:
Payable for securities purchased 1,443,311 --
Dividend payable 106,403 197,654
Payable for Capital Stock repurchased 21,432 156,061
Accrued expenses, taxes, and other 79,551 111,556
----------- ------------
Total Liabilities 1,650,697 465,271
----------- ------------
Net Assets $58,885,267 $110,876,927
=========== ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A $ 7,499 $ 13,400
Class D 201 337
Additional paid-in capital 57,085,025 105,654,559
Undistributed/accumulated net realized
gain (loss) 282,952 1,707,497
Net unrealized appreciation of investments 1,509,590 3,501,134
----------- ------------
Net Assets $58,885,267 $110,876,927
=========== ============
NET ASSETS:
Class A $57,345,429 $108,163,191
Class D $ 1,539,838 $ 2,713,736
SHARES OF CAPITAL STOCK OUTSTANDING:
($.001 par value):
Class A 7,498,730 13,400,425
Class D 201,500 336,525
NET ASSET VALUE PER SHARE:
Class A $7.65 $8.07
Class D $7.64 $8.06
</TABLE>
39
<PAGE>
================================================================================
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL COLORADO GEORGIA LOUISIANA MARYLAND
SERIES SERIES SERIES SERIES SERIES
---------- ------------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $6,267,187 $ 3,162,333 $3,288,852 $3,608,436 $3,339,274
--------- --------- --------- --------- ---------
EXPENSES:
Management fees ........................... 523,545 267,392 285,693 301,833 283,435
Shareholder account services .............. 121,990 65,683 67,100 68,235 73,379
Distribution and service fees ............. 109,177 52,511 75,161 62,786 65,575
Auditing and legal fees ................... 32,702 38,344 34,213 35,670 34,196
Custody and related services .............. 26,997 6,355 13,117 12,922 9,187
Registration .............................. 18,874 4,224 4,991 4,629 7,353
Shareholder reports and communications .... 12,558 9,381 6,226 7,607 7,755
Trustees' fees and expenses ............... 4,670 4,966 4,306 4,382 4,390
Miscellaneous ............................. 5,048 4,757 3,372 1,882 3,294
--------- --------- --------- --------- --------
Total expenses ............................ 855,561 453,613 494,179 499,946 488,564
--------- --------- --------- --------- --------
Net investment income ..................... 5,411,626 2,708,720 2,794,673 3,108,490 2,850,710
--------- --------- --------- --------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.... 1,270,012 230,074 234,736 764,403 237,843
Net change in unrealized appreciation
of investments .......................... 477,663 (404,283) 574,897 (27,213) 207,699
--------- --------- --------- --------- ------
Net gain (loss) on investments ............ 1,747,675 (174,209) 809,633 737,190 445,542
--------- --------- --------- --------- -------
Increase in Net Assets from
Operations .............................. $7,159,301 $ 2,534,511 $3,604,306 $ 3,845,680 $3,296,252
========= ========= ========= ========== ==========
- ----------
See Notes to Financial Statements.
</TABLE>
40
<PAGE>
================================================================================
For the Year Ended September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS MICHIGAN MINNESOTA MISSOURI NEW YORK OHIO
SERIES SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................. $ 6,894,794 $ 9,206,730 $ 8,270,642 $ 2,994,894 $5,090,734 $ 10,227,494
--------- --------- --------- --------- --------- ----------
EXPENSES:
Management fees ........................... 571,658 759,311 659,120 254,770 423,159 839,336
Shareholder account services .............. 152,595 178,366 174,478 60,686 87,366 190,504
Distribution and service fees ............. 118,706 163,525 148,374 54,939 82,699 172,600
Auditing and legal fees ................... 35,220 35,626 37,098 36,904 32,702 33,866
Custody and related services .............. 19,533 25,707 30,532 11,344 16,444 36,248
Registration .............................. 8,336 6,770 3,706 4,615 5,798 5,293
Shareholder reports and communications..... 9,731 10,446 17,163 10,387 8,126 16,136
Trustees' fees and expenses ............... 4,545 4,534 4,566 4,342 4,532 4,564
Miscellaneous ............................. 5,200 10,136 5,923 3,211 4,355 6,744
--------- --------- ---------- --------- --------- ---------
Total expenses ............................ 925,524 1,194,421 1,080,960 441,198 665,181 1,305,291
--------- --------- --------- --------- --------- ---------
Net investment income ..................... 5,969,270 8,012,309 7,189,682 2,553,696 4,425,553 8,922,203
--------- --------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.... 1,211,500 1,595,202 (1,345,678) 702,168 1,161,126 1,396,965
Net change in unrealized appreciation
of investments .......................... (502,191) (620,275) (718,882) (147,019) 36,180 (1,059,760)
------- ------- ---------- ------- --------- -------
Net gain (loss) on investments ............ 709,309 974,927 (2,064,560) 555,149 1,197,306 337,205
------- ------- ---------- ------- --------- -------
Increase in Net Assets from
Operations .............................. $ 6,678,579 $ 8,987,236 $ 5,125,122 $ 3,108,845 $5,622,859 $ 9,259,408
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
SOUTH
OREGON CAROLINA
SERIES SERIES
INVESTMENT INCOME: ----------- ---------
<S> <C> <C>
Interest ................................. $ 3,636,740 $ 6,744,056
----------- ----------
EXPENSES:
Management fees .......................... 301,447 567,688
Shareholder account services ............. 76,118 135,214
Distribution and service fees ............ 72,961 130,776
Auditing and legal fees .................. 37,556 33,902
Custody and related services ............. 18,134 31,792
Registration ............................. 2,915 2,408
Shareholder reports and communications.... 11,334 14,069
Trustees' fees and expenses .............. 4,336 4,321
Miscellaneous ............................ 4,260 4,942
--------- ---------
Total expenses ........................... 529,061 925,112
--------- ---------
Net investment income .................... 3,107,679 5,818,944
--------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments... 286,078 1,720,268
Net change in unrealized appreciation
of investments ......................... (342,324) (81,642)
-------- -------
Net gain (loss) on investments ........... (56,246) 1,638,626
-------- -------
Increase in Net Assets from
Operations ............................. $ 3,051,433 $ 7,457,570
========= =========
</TABLE>
- ----------
See Notes to Financial Statements.
41
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES
--------------- ---------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $5,411,626 $5,912,049 $2,708,720 $2,945,189
Net realized gain (loss) on
investments.................. 1,270,012 (4,331,294) 230,074 318,881
Net change in unrealized
appreciation/depreciation of
investments.................. 477,663 10,223,855 (404,283) 1,121,736
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 7,159,301 11,804,610 2,534,511 4,385,806
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (5,337,292) (5,878,199) (2,698,764) (2,940,344)
Class D.................... (74,334) (33,850) (9,956) (4,845)
Net realized gain on investments:
Class A.................... -- -- -- --
Class D.................... -- -- -- --
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (5,411,626) (5,912,049) (2,708,720) (2,945,189)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 6,105,129 2,851,364 1,368,525 1,419,305
Class D..................... 940,723 885,065 56,953 102,710
Net asset value of shares issued
in payment of dividends:
Class A..................... 2,793,160 3,020,506 1,465,852 1,614,670
Class D..................... 56,590 23,901 5,835 3,014
Exchanged from associated
Funds:
Class A..................... 30,244,931 9,766,862 1,429,514 523,761
Class D..................... 8,276,409 835,262 1,923 --
Net asset value of shares issued
in payment of gain distribution:
Class A..................... -- -- -- --
Class D..................... -- -- -- --
----------- ----------- ---------- ----------
Total.......................... 48,416,942 17,382,960 4,328,602 3,663,460
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (13,127,822) (18,952,660) (5,606,419) (7,041,417)
Class D..................... (326,631) (112,028) (1,000) (10,731)
Exchanged into associated Funds:
Class A..................... (33,145,022) (9,700,508) (1,047,428) (1,293,621)
Class D..................... (5,370,882) (931,548) -- (1,000)
----------- ----------- ---------- ----------
Total.......................... (51,970,357) (29,696,744) (6,654,847) (8,346,769)
----------- ----------- ---------- ----------
Decrease in Net Assets
from Capital Share
Transactions................... (3,553,415) (12,313,784) (2,326,245) (4,683,309)
----------- ----------- ---------- ----------
Increase (Decrease) in Net
Assets......................... (1,805,740) (6,421,223) (2,500,454) (3,242,692)
----------- ----------- ---------- ----------
NET ASSETS:
Beginning of year.............. 105,399,093 111,820,316 55,050,583 58,293,275
----------- ----------- ---------- -----------
End of year.................... $103,593,353 $105,399,093 $ 52,550,129 $ 55,050,583
============ ============ ============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
42
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEORGIA SERIES LOUISIANA SERIES
-------------- ----------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ............... $ 2,794,673 $ 3,154,534 $ 3,108,490 $ 3,363,531
Net realized gain (loss) on
investments ....................... 234,736 362,501 764,403 468,171
Net change in unrealized
appreciation/depreciation of
investments ....................... 574,897 3,043,005 (27,213) 2,190,601
------------ ------------ ------------ ------------
Increase in Net Assets from
Operations .......................... 3,604,306 6,560,040 3,845,680 6,022,303
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ......................... (2,697,792) (3,090,529) (3,091,821) (3,335,643)
Class D ......................... (96,881) (64,005) (16,669) (27,888)
Net realized gain on investments:
Class A ......................... (395,597) (831,300) (467,263)
Class D ......................... (14,504) (13,226) (3,540) (12,456)
------------ ------------ ------------ ------------
Decrease in Net Assets from
Distributions ....................... (3,204,774) (3,999,060) (3,579,293) (4,452,407)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A ......................... 2,193,735 2,570,447 2,360,417 1,592,654
Class D ......................... 1,001,710 1,264,930 95,464 65,763
Net asset value of shares issued in
payment of dividends:
Class A ......................... 1,741,886 1,976,148 1,645,661 1,855,635
Class D ......................... 77,107 57,730 10,639 23,376
Exchanged from associated
Funds:
Class A ......................... 290,528 1,271,396 4,573 250,945
Class D ......................... 7,853 250 -- --
Net asset value of shares issued in
payment of gain distribution:
Class A ......................... 304,162 644,018 317,865 766,089
Class D ......................... 13,827 12,212 3,070 9,263
------------ ------------ ------------ ------------
Total ............................... 5,630,808 7,797,131 4,437,689 4,563,725
------------ ------------ ------------ ------------
Cost of shares repurchased:
Class A ......................... (10,153,419) (10,210,900) (8,844,981) (5,202,189)
Class D ......................... (419,468) (125,984) (185,368) (354,393)
Exchanged into associated
Funds:
Class A ......................... (1,457,061) (2,507,796) (467,638) (269,863)
Class D ......................... (435,462) (71,202) (5,400) --
------------ ------------ ------------ ------------
Total ............................... (12,465,410) (12,915,882) (9,503,387) (5,826,445)
------------ ------------ ------------ ------------
Decrease in Net Assets
from Capital Share
Transactions ........................ (6,834,602) (5,118,751) (5,065,698) (1,262,720)
------------ ------------ ------------ ------------
Increase (Decrease) in Net .......... (6,435,070) (2,557,771) (4,799,311) 307,176
Assets
NET ASSETS:
Beginning of year ................... 59,757,435 62,315,206 62,452,992 62,145,816
------------ ------------ ------------ ------------
End of year ......................... $ 53,322,365 $ 59,757,435 $ 57,653,681 $ 62,452,992
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES MASSACHUSETTS SERIES
--------------- --------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................. $ 2,850,710 $ 3,008,028 $ 5,969,270 $ 6,394,660
Net realized gain (loss) on
investments ......................... 237,843 236,106 1,211,500 1,446,650
Net change in unrealized
appreciation/depreciation of
investments ......................... 207,699 2,550,147 (502,191) 2,623,425
------------ ------------ ------------- -------------
Increase in Net Assets from ........... 3,296,252 5,794,281 6,678,579 10,464,735
------------ ------------ ------------- -------------
Operations
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ........................... (2,793,641) (2,986,376) (5,917,218) (6,351,161)
Class D ........................... (57,069) (21,652) (52,052) (43,499)
Net realized gain on investments:
Class A ........................... (237,764) (980,988) (1,556,813) (490,162)
Class D ........................... (3,924) (7,361) (12,717) (4,647)
------------ ------------ ------------- -------------
Decrease in Net Assets from ........... (3,092,398) (3,996,377) (7,538,800) (6,889,469)
------------ ------------ ------------- -------------
Distributions
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A ........................... 2,002,265 1,825,028 3,289,916 3,096,538
Class D ........................... 1,482,760 365,965 664,274 618,045
Net asset value of shares issued in
payment of dividends:
Class A ........................... 1,630,540 1,711,454 3,456,082 3,662,542
Class D ........................... 47,295 14,257 33,741 33,446
Exchanged from associated
Funds:
Class A ........................... 1,117,092 1,329,821 4,648,026 5,018,822
Class D ........................... -- 15,045 180,514 70,140
Net asset value of shares issued in
payment of gain distribution:
Class A ........................... 175,287 716,294 1,131,226 373,978
Class D ........................... 3,460 5,227 9,793 4,460
------------ ------------ ------------- -------------
Total ................................. 6,458,699 5,983,091 13,413,572 12,877,971
------------ ------------ ------------- -------------
Cost of shares repurchased:
Class A ........................... (6,209,930) (6,866,029) (12,032,238) (14,533,095)
Class D ........................... (122,344) (132,593) (239,034) (126,610)
Exchanged into associated
Funds:
Class A ........................... (1,151,307) (1,469,104) (5,473,480) (5,616,572)
Class D ........................... (10,726) (80,763) (133,437) (824,191)
------------ ------------ ------------- -------------
Total ................................. (7,494,307) (8,548,489) (17,878,189) (21,100,468)
------------ ------------ ------------- -------------
Decrease in Net Assets
from Capital Share .................... (1,035,608) (2,565,398) (4,464,617) (8,222,497)
------------ ------------ ------------- -------------
Transactions (4,647,231)
Increase (Decrease) in Net Assets...... (831,754) (767,494) (5,324,838)
NET ASSETS:
Beginning of year ..................... 56,920,033 57,687,527 116,601,411 121,248,642
------------ ------------ ------------- -------------
End of year ........................... $ 56,088,279 $ 56,920,033 $ 111,276,573 $ 116,601,411
============ ============ ============= =============
</TABLE>
43
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES
--------------- ----------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $8,012,309 $8,244,445 $7,189,682 $7,901,996
Net realized gain (loss) on
investments.................. 1,595,202 2,565,892 (1,345,678) 250,044
Net change in unrealized
appreciation/depreciation of
investments.................. (620,275) 2,886,770 (718,882) 1,679,385
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 8,987,236 13,697,107 5,125,122 9,831,425
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (7,945,727) (8,206,113) (7,091,290) (7,807,472)
Class D.................... (66,582) (38,332) (98,392) (94,524)
Net realized gain on investments:
Class A.................... (2,526,473) (775,115) (339,461) (243,727)
Class D.................... (24,970) (3,791) (5,862) (3,101)
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (10,563,752) (9,023,351) (7,535,005) (8,148,824)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 5,017,723 6,333,074 5,136,193 4,204,185
Class D..................... 643,962 580,729 355,058 859,498
Net asset value of shares issued
in payment of dividends:
Class A..................... 4,892,727 5,053,914 4,809,942 5,253,143
Class D..................... 43,735 30,472 74,558 63,245
Exchanged from associated
Funds:
Class A..................... 2,197,763 864,699 496,211 1,435,131
Class D..................... 210,059 104,572 48,646 159,356
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 1,901,806 582,931 270,799 192,123
Class D..................... 21,146 3,281 4,666 2,291
----------- ----------- ---------- ----------
Total.......................... 14,928,921 13,553,672 11,196,073 12,168,972
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (13,211,454) (14,573,617) (13,463,390) (12,629,875)
Class D..................... (368,116) (181,421) (507,655) (277,761)
Exchanged into associated Funds:
Class A..................... (2,652,409) (2,418,114) (1,423,552) (2,382,699)
Class D..................... (217,280) ( 58,666) (135,371) (247,272)
----------- ----------- ---------- -----------
Total.......................... (16,449,259) (17,231,818) (15,529,968) (15,537,607)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (1,520,338) (3,678,146) (4,333,895) (3,368,635)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (3,096,854) 995,610 (6,743,778) (1,686,034)
NET ASSETS:
Beginning of year.............. 152,761,166 151,765,556 134,952,796 136,638,830
------------ ------------ ------------ ------------
End of year.................... $149,664,312 $152,761,166 $128,209,018 $134,952,796
============ ============ ============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
44
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MISSOURI SERIES NEW YORK SERIES
------------------------ ------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $2,553,696 $2,737,886 $4,425,553 $4,773,085
Net realized gain (loss) on
investments.................. 702,168 331,360 1,161,126 (945,837)
Net change in unrealized
appreciation/depreciation of
investments.................. (147,019) 2,085,364 36,180 5,008,458
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 3,108,845 5,154,610 5,622,859 8,835,706
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (2,529,631) (2,720,786) (4,381,889) (4,746,318)
Class D.................... (24,065) (17,100) (43,664) (26,767)
Net realized gain on investments:
Class A.................... (477,820) (491,076) -- (1,996,017)
Class D.................... (5,541) (3,310) -- (10,892)
----------- ----------- ---------- ----------
Decrease in Net Assets from
Distributions.................. (3,037,057) (3,232,272) (4,425,553) (6,779,994)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 2,604,871 1,490,314 3,350,809 5,616,771
Class D..................... 354,207 221,573 411,499 157,609
Net asset value of shares issued
in payment of dividends:
Class A..................... 1,314,503 1,401,213 2,485,560 2,634,442
Class D..................... 15,852 12,801 31,604 21,246
Exchanged from associated
Funds:
Class A..................... 90,007 365,314 3,161,968 2,263,947
Class D..................... 44,301 -- 184,854 364,576
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 311,188 321,122 -- 1,604,994
Class D..................... 2,649 3,144 -- 9,747
----------- ----------- ---------- ----------
Total.......................... 4,737,578 3,815,481 9,626,294 12,673,332
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (4,836,102) (6,123,870) (9,268,664) (15,940,087)
Class D..................... (304,921) 70,945) (258,544) (156,491)
Exchanged into associated Funds:
Class A..................... (788,552) (814,682) (2,173,151) (5,149,991)
Class D..................... (57,294) ( 15,500) (116,722) (7,500)
----------- ----------- ---------- -----------
Total.......................... (5,986,869) (7,024,997) (11,817,081) (21,254,069)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (1,249,291) (3,209,516) (2,190,787) (8,580,737)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (1,177,503) (1,287,178) (993,481) (6,525,025)
NET ASSETS:
Beginning of year.............. 51,683,934 52,971,112 84,865,039 91,390,064
------------ ------------ ------------ ------------
End of year.................... $ 50,506,431 $ 51,683,934 $ 83,871,558 $ 84,865,039
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES OREGON SERIES
------------------------ --------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------ --------------------------
1996 1995 1996 1995
---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.......... $8,922,203 $9,431,883 $3,107,679 $3,208,270
Net realized gain (loss) on
investments.................. 1,396,965 810,038 286,078 70,060
Net change in unrealized
appreciation/depreciation of
investments.................. (1,059,760) 5,388,960 (342,324) 1,780,874
----------- ----------- ---------- ----------
Increase in Net Assets from
Operations..................... 9,259,408 15,630,881 3,051,433 5,059,204
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (8,882,222) (9,410,971) (3,041,984) (3,154,482)
Class D.................... (39,981) (20,912) (65,695) (53,788)
Net realized gain on investments:
Class A.................... (794,088) (1,594,353) (61,975) (140,983)
Class D.................... (3,482) (3,594) (1,566) (2,232)
----------- ----------- ---------- ---------
Decrease in Net Assets from
Distributions.................. (9,719,773) (11,029,830) (3,171,220) (3,351,485)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 4,520,137 4,802,866 3,453,799 3,693,429
Class D..................... 348,741 277,972 410,708 897,335
Net asset value of shares issued
in payment of dividends:
Class A..................... 5,490,252 5,871,637 1,922,589 1,966,334
Class D..................... 34,422 17,037 51,715 38,946
Exchanged from associated
Funds:
Class A..................... 939,551 787,632 554,373 884,994
Class D..................... 4,272 28,117 21,324 --
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 599,050 1,221,569 46,901 107,524
Class D..................... 3,281 3,510 1,353 1,995
----------- ----------- ---------- ----------
Total.......................... 11,939,706 13,010,340 6,462,762 7,590,557
----------- ----------- ---------- ----------
Cost of shares repurchased:
Class A..................... (16,177,726) (15,867,883) (7,135,242) (6,179,880)
Class D..................... (24,324) (10,683) (304,546) (210,837)
Exchanged into associated Funds:
Class A..................... (2,863,802) (2,675,846) (932,697) (2,472,172)
Class D..................... (10,486) -- (129,221) (118,837)
----------- ----------- ---------- -----------
Total.......................... (19,076,338) (18,554,412) (8,501,706) (8,981,726)
----------- ----------- ---------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (7,136,632) (5,544,072) (2,038,944) (1,391,169)
----------- ----------- ---------- -----------
Increase (Decrease) in Net
Assets......................... (7,596,997) (943,021) (2,158,731) 316,550
NET ASSETS:
Beginning of year.............. 170,850,514 171,793,535 61,043,998 60,727,448
------------ ------------ ------------ ------------
End of year.................... $163,253,517 $170,850,514 $ 58,885,267 $ 61,043,998
============ ============ ============ ============
</TABLE>
45
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
1996 1995
---- ----
OPERATIONS:
<S> <C> <C>
Net investment income.......... $5,818,944 $6,032,145
Net realized gain (loss) on
investments.................. 1,720,268 255,806
Net change in unrealized
appreciation/depreciation of
investments.................. (81,642) 5,014,984
----------- -----------
Increase in Net Assets from
Operations..................... 7,457,570 11,302,935
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................... (5,721,911) (5,962,919)
Class D.................... (97,033) (69,226)
Net realized gain on investments:
Class A.................... (253,251) (207,068)
Class D.................... (5,029) (2,607)
----------- -----------
Decrease in Net Assets from
Distributions.................. (6,077,224) (6,241,820)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of
shares:
Class A..................... 7,339,428 7,883,988
Class D..................... 1,431,442 440,392
Net asset value of shares issued
in payment of dividends:
Class A..................... 3,322,251 3,428,206
Class D..................... 85,491 56,548
Exchanged from associated
Funds:
Class A..................... 844,016 1,353,402
Class D..................... -- 89,667
Net asset value of shares issued
in payment of gain distribution:
Class A..................... 195,931 162,756
Class D..................... 4,927 2,494
----------- -----------
Total.......................... 13,223,486 13,417,453
----------- -----------
Cost of shares repurchased:
Class A..................... (14,837,001) (17,698,986)
Class D..................... (519,148) (360,978)
Exchanged into associated Funds:
Class A..................... (2,478,917) (2,826,362)
Class D..................... (16,928) (78,655)
----------- -----------
Total.......................... (17,851,994) (20,964,981)
----------- -----------
Decrease in Net Assets
from Capital Share
Transactions................... (4,628,508) (7,547,528)
----------- -----------
Increase (Decrease) in Net
Assets......................... (3,248,162) (2,486,413)
NET ASSETS:
Beginning of year.............. 114,125,089 116,611,502
------------ ------------
End of year.................... $110,876,927 $114,125,089
============ ============
</TABLE>
- ----------
See Notes to Financial Statements.
46
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Municipal Fund Series, Inc., formerly, Seligman Tax-Exempt Fund
Series, Inc., (the "Fund") consists of 13 separate series: the "National
Series," the "Colorado Series," the "Georgia Series," the "Louisiana Series,"
the "Maryland Series," the "Massachusetts Series," the "Michigan Series," the
"Minnesota Series," the "Missouri Series," the "New York Series," the "Ohio
Series," the "Oregon Series," and the "South Carolina Series." Each Series of
the Fund offers two classes of shares. All shares existing prior to February 1,
1994, 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 A shares purchased in an amount of $1,000,000 or more are
sold without an initial sales charge but are subject to a contingent deferred
sales load ("CDSC") of 1% on redemptions within 18 months of purchase. 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 CDSL of 1% imposed on certain redemptions made within one year of
purchase. The two classes of shares for each Series 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 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. All tax-exempt securities and other short-term holdings maturing in more than
60 days are valued based upon quotations provided by an independent pricing
service or, in their absence, at fair value determined in accordance with
procedures approved by the Board of Directors. Short-term holdings maturing in
60 days or less are generally valued at amortized cost.
b. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized. Dividends are
declared daily and paid monthly.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Interest income is recorded on the accrual basis. The Fund amortizes
original issue discounts and premiums paid on purchases of portfolio securities.
Discounts other than original issue discounts are not amortized.
d. 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 the shares of each cla 3/4 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 cla
3/4 For the year ended September 30, 1996, distribution and service fees were
the only class-specific expenses.
e. The treatment for financial statement purposes of distributions made during
the year 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, and 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 reclassification will have no effect on net assets, results
of operations, or net asset value per share of the Fund. At September 30, 1996,
realized capital gains for federal tax purposes exceeded realized capital gains
for financial statement purposes for the Minnesota Series by $1,439,428.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended September 30, 1996, were as follows:
SERIES PURCHASES SALES
------ --------- -----
National $35,263,857 $35,494,531
Colorado 6,405,600 9,330,531
Georgia 9,037,810 16,811,229
Louisiana 5,957,485 11,484,148
Maryland 3,512,218 3,033,100
Massachusetts 29,288,895 33,926,280
Michigan 29,300,120 32,144,653
Minnesota 34,276,811 34,781,821
Missouri 3,961,250 6,838,449
New York 21,560,440 24,099,490
Ohio 21,170,955 28,708,510
Oregon 17,038,668 18,193,093
South Carolina 23,148,520 27,825,391
47
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At September 30, 1996, 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
were as follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
-------- ---------------- ----------------
National $2,838,707 $1,397,762
Colorado 2,370,526 1,595,885
Georgia 1,988,118 520,245
Louisiana 2,472,756 531,735
Maryland 2,470,422 341,522
Massachusetts 3,579,573 884,151
Michigan 5,702,789 120,535
Minnesota 6,826,658 734,315
Missouri 2,053,138 432,928
New York 2,879,723 381,291
Ohio 7,847,432 728,195
Oregon 1,775,249 265,659
South Carolina 3,868,077 366,943
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's fee, calculated daily and payable monthly, is
equal to 0.50% per annum of each Series' average daily net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares and an affiliate of the Manager, received
the following concessions after commissions were paid to dealers for the sale of
Class A shares:
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
----- ----------- -----------
National $15,618 $120,046
Colorado 6,810 50,693
Georgia 10,864 82,566
Louisiana 11,649 85,328
Maryland 10,368 73,461
Massachusetts 13,360 93,885
Michigan 21,956 161,994
Minnesota 22,738 168,882
Missouri 7,979 61,487
New York 11,497 86,499
Ohio 20,073 150,807
Oregon 13,323 100,702
South Carolina 32,649 237,864
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 continuing fees 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. For
the year ended September 30, 1996, the Distributor charged such fees to the Fund
pursuant to the Plan as follows:
ANNUALIZED
TOTAL FEES % OF AVERAGE
SERIES PAID NET ASSETS
----- ---------- ----------
National $ 91,913 .09%
Colorado 50,124 .10
Georgia 51,150 .09
Louisiana 58,864 .10
Maryland 51,901 .10
Massachusetts 106,702 .10
Michigan 148,323 .10
Minnesota 126,825 .10
Missouri 49,092 .10
New York 72,626 .09
Ohio 163,554 .10
Oregon 57,596 .10
South Carolina 107,885 .10
48
<PAGE>
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on a 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 year ended September 30, 1996,
fees paid equivalent to 1% per annum of the average daily net assets of Class D
shares were as follows:
SERIES SERIES
------ ------
National $17,264 Minnesota $21,549
Colorado 2,387 Missouri 5,847
Georgia 24,011 New York 10,073
Louisiana 3,922 Ohio 9,046
Maryland 13,674 Oregon 15,365
Massachusetts 12,004 South Carolina 22,891
Michigan 15,202
The Distributor is entitled to retain any CDSL imposed on certain redemptions of
Class D shares occurring within one year of purchase. For the year ended
September 30, 1996, such charges were as follows:
SERIES SERIES
------ ------
National $1,933 Minnesota $ 258
Georgia 280 Missouri 1,486
Louisiana 131 New York 1,810
Maryland 370 Oregon 192
Massachusetts 641 South Carolina 3,624
Michigan 1,551
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of Fund shares, as well as distribution and
service fees pursuant to the Plan. For the year ended September 30, 1996,
Seligman Services, Inc. received commissions from sales of shares of each Series
and distribution and service fees pursuant to the Plan, as follows:
DISTRIBUTION AND
SERIES COMMISSIONS SERVICE FEES
------ ------------- ---------------------
National $1,736 $6,257
Colorado 4,437 2,997
Georgia 525 667
Louisiana -- 647
Maryland 1,251 1,399
Massachusetts 689 2,555
Michigan 1,315 2,656
Minnesota 1,717 2,122
Missouri 1,754 3,149
New York 2,144 8,922
Ohio 2,276 2,929
Oregon 763 797
South Carolina 2,229 1,484
Seligman Data Corp., which is owned by certain associated investment companies,
charged at cost for shareholder account services the following amounts:
SERIES SERIES
------ ------
National $121,990 Minnesota $174,478
Colorado 65,683 Missouri 60,686
Georgia 67,100 New York 87,366
Louisiana 68,235 Ohio 190,504
Maryland 73,379 Oregon 76,118
Massachusetts 152,595 South Carolina 135,214
Michigan 178,366
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
Fees of $46,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
49
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
The Fund has a compensation agreement under which directors who receive fees may
elect to defer receiving such fees. Interest is accrued on the deferred
balances. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The annual cost of such
fees and interest is included in directors' fees and expenses, and the
accumulated balances thereof at September 30, 1996, are as follows:
SERIES SERIES
- ----- -----
National $16,686 Minnesota $14,084
Colorado 10,266 Missouri 10,266
Georgia 9,586 New York 14,084
Louisiana 11,203 Ohio 14,084
Maryland 11,203 Oregon 10,083
Massachusetts 14,084 South Carolina 9,586
Michigan 13,582
5. In accordance with current federal income tax law, each of the Series' net
realized capital gains and losses are considered separately for purposes of
determining taxable capital gains. At September 30, 1996, the net loss
carryforwards for the National and Colorado Series amounted to $3,212,821 and
$37,933, respectively, which are available for offset against future taxable net
gains, expiring in various amounts through 2004. Accordingly, no capital gain
distributions are expected to be paid to shareholders of the National and
Colorado Series until net capital gains have been realized in excess of the
available capital loss carryforwards.
6. The Fund has 1,300,000,000 shares of Capital Stock authorized. At September
30, 1996, 100,000,000 shares were authorized for each Series of the Fund.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
NATIONAL SERIES COLORADO SERIES GEORGIA SERIES
--------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
--------------------------- ------------------------ -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ..................... 787,838 390,656 186,485 197,677 278,594 342,804
Class D ..................... 122,738 119,342 7,709 14,107 125,912 168,888
Shares issued in payment of
dividends:
Class A ..................... 362,598 414,132 200,194 226,321 221,658 263,035
Class D ..................... 7,360 3,246 799 424 9,793 7,605
Exchanged from associated Funds:
Class A ..................... 3,977,611 1,396,452 197,002 73,282 36,617 169,875
Class D ..................... 1,084,989 122,280 258 -- 1,004 32
Shares issued in payment of gain
distributions:
Class A ..................... -- -- -- -- 38,308 94,017
Class D ..................... -- -- -- -- 1,739 1,780
--------- --------- -------- --------- --------- ---------
Total 6,343,134 2,446,108 592,447 511,811 713,625 1,048,036
--------- --------- -------- --------- --------- ---------
Shares repurchased:
Class A ..................... (1,709,147) (2,610,634) (766,043) (997,269) (1,294,735) (1,363,466)
Class D ..................... (42,115) (14,877) (139) (1,468) (53,212) (16,580)
Exchanged into associated Funds:
Class A ..................... (4,341,083) (1,359,162) (142,468) (185,668) (185,879) (337,410)
Class D ..................... (706,332) (131,648) -- (136) (55,816) (9,351)
--------- --------- -------- --------- --------- ---------
Total ............................ (6,798,677) (4,116,321) (908,650) (1,184,541) (1,589,642) (1,726,807)
--------- --------- -------- --------- --------- ---------
Decrease in shares ............... (455,543) (1,670,213) (316,203) (672,730) (876,017) (678,771)
========= ========= ======== ========= ========= =========
</TABLE>
50
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOUISIANA SERIES MARYLAND SERIES MASSACHUSETTS SERIES
---------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
---------------------------- ----------------------- -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ................................... 289,128 203,544 251,027 235,573 420,626 399,337
Class D ................................... 11,771 8,145 187,262 46,497 84,893 80,201
Shares issued in payment of dividends:
Class A ................................... 201,153 235,011 203,932 222,065 439,779 475,382
Class D ................................... 1,298 2,969 5,928 1,836 4,303 4,357
Exchanged from associated Funds:
Class A ................................... 559 32,811 138,972 174,666 598,715 643,216
Class D ................................... -- -- -- 1,883 23,224 8,872
Shares issued in payment of gain distributions:
Class A ................................... 38,670 104,944 21,748 101,029 142,832 51,797
Class D ................................... 374 1,269 429 737 1,238 618
---------- -------- -------- ---------- ---------- ----------
Total ...................................... 542,953 588,693 809,298 784,286 1,715,610 1,663,780
---------- -------- -------- ---------- ---------- ----------
Shares repurchased:
Class A .................................. (1,076,395) (660,838) (777,341) (892,644) (1,532,595) (1,900,781)
Class D .................................. (22,258) (43,956) (15,227) (16,759) (29,941) (16,608)
Exchanged into associated Funds:
Class A .................................. (56,582) (34,105) (144,008) (192,205) (700,147) (722,628)
Class D .................................. (657) -- (1,335) (10,109) (17,262) (108,292)
---------- -------- -------- ---------- ---------- ----------
Total ......................................... (1,155,892) (738,899) (937,911) (1,111,717) (2,279,945) (2,748,309)
---------- -------- -------- ---------- ---------- ----------
Decrease in shares ............................ (612,939) (150,206) (128,613) (327,431) (564,335) (1,084,529)
========== ======== ======== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES MINNESOTA SERIES MISSOURI SERIES
---------------------------- ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
---------------------------- ----------------------- -------------------------
1996 1995 1996 1995 1996 1995
------------- ---------- ---------- -------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................. 590,794 757,584 662,567 544,854 336,439 199,885
Class D .................................. 75,571 69,200 45,645 111,851 45,866 28,871
Shares issued in payment of dividends:
Class A .................................. 577,449 607,709 622,155 681,571 170,657 187,773
Class D .................................. 5,165 3,659 9,641 8,190 2,059 1,688
Exchanged from associated Funds:
Class A .................................. 261,523 104,833 63,682 186,606 11,737 49,003
Class D .................................. 24,587 12,331 6,252 20,768 5,683 --
Shares issued in payment of gain distributions:
Class A .................................. 222,433 75,509 34,629 26,068 40,153 46,811
Class D .................................. 2,476 425 597 310 342 458
---------- ----------- ----------- ----------- ---------- ----------
Total ......................................... 1,759,998 1,631,250 1,445,168 1,580,218 612,936 514,489
---------- ----------- ----------- ----------- ---------- ----------
Shares repurchased:
Class A .................................. (1,562,041) (1,759,378) (1,744,913) (1,640,906) (626,785) (829,527)
Class D .................................. (43,655) (22,079) (65,660) (35,960) (40,183) (9,384)
Exchanged into associated Funds:
Class A .................................. (314,340) (293,434) (183,451) (308,844) (102,871) (108,014)
Class D .................................. (25,575) (7,254) (17,466) (32,624) (7,345) (2,017)
---------- ----------- ---------- ----------- ---------- ----------
Total ......................................... (1,945,611) (2,082,145) (2,011,490) (2,018,334) (777,184) (948,942)
---------- ----------- ---------- ----------- ---------- ----------
Decrease in shares ............................ (185,613) (450,895) (566,322) (438,116) (164,248) (434,453)
========== =========== ========== ========== ========== ==========
</TABLE>
51
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES OHIO SERIES OREGON SERIES
------------------------ ----------------------- ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------------ ----------------------- ------------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
SALE OF SHARES:
Class A .................................... 420,183 759,986 556,577 607,544 449,036 491,549
Class D .................................... 51,905 20,328 42,516 35,134 53,330 119,881
Shares issued in payment of dividends:
Class A .................................... 311,826 346,619 676,616 742,966 250,740 263,145
Class D .................................... 3,961 2,790 4,228 2,142 6,750 5,200
Exchanged from associated Funds:
Class A .................................... 396,166 307,438 115,979 100,205 72,458 117,527
Class D .................................... 22,805 46,880 522 3,512 2,730 --
Shares issued in payment of gain distributions:
Class A .................................... -- 233,284 73,144 166,200 6,052 15,449
Class D .................................... -- 1,417 399 476 175 287
---------- ---------- ---------- ---------- ---------- ----------
Total ......................................... 1,206,846 1,718,742 1,469,981 1,658,179 841,271 1,013,038
---------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A .................................... (1,161,173) (2,115,969) (1,993,888) (2,013,198) (932,734) (827,019)
Class D .................................... (31,991) (20,029) (2,985) (1,314) (39,953) (27,866)
Exchanged into associated Funds:
Class A .................................... (273,410) (706,020) (354,919) (340,747) (122,134) (344,772)
Class D .................................... (14,800) (980) (1,268) -- (16,869) (15,720)
---------- ---------- ---------- ---------- ---------- ----------
Total ......................................... (1,481,374) (2,842,998) (2,353,060) (2,355,259) (1,111,690) (1,215,377)
---------- ---------- ---------- ---------- ---------- ----------
Decrease in shares ............................ (274,528) (1,124,256) (883,079) (697,080) (270,419) (202,339)
========== ========== ========== ========== ========== ==========
</TABLE>
SOUTH CAROLINA SERIES
----------------------------
YEAR ENDED
SEPTEMBER 30,
----------------------------
1996 1995
----------- ----------
Sale of shares:
Class A ................................... 909,638 1,022,961
Class D ................................... 179,334 56,814
Shares issued in payment of dividends:
Class A ................................... 412,361 444,222
Class D ................................... 10,618 7,314
Exchanged from associated Funds:
Class A ................................... 104,833 173,490
Class D ................................... -- 12,150
Shares issued in payment of gain distributions:
Class A ................................... 24,100 22,923
Class D ................................... 607 351
---------- ----------
Total .......................................... 1,641,491 1,740,225
---------- ----------
Shares repurchased:
Class A ................................... (1,840,951) (2,310,043)
Class D ................................... (65,796) (46,819)
Exchanged into associated Funds:
Class A ................................... (308,319) (376,197)
Class D ................................... (2,110) (10,186)
---------- ----------
Total .......................................... (2,217,176) (2,743,245)
---------- ----------
Decrease in shares ............................. (575,685) (1,003,020)
========== ==========
52
<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 a Class' beginning net asset value to
the ending net asset value so that they may 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, based on average shares outstanding.
The total return based on net asset value measures each Class' performance
assuming investors purchased 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 each Series. The total returns for
periods of less than one year are not annualized.
<TABLE>
<CAPTION>
NATIONAL SERIES CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.58 $ 7.18 $ 8.72 $ 8.07 $ 7.90
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.40 0.40 0.41 0.45 0.48
Net realized and unrealized gain (loss) ...... 0.12 0.40 (1.04) 0.78 0.20
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.52 0.80 (0.63) 1.23 0.68
Dividends paid or declared ................... (0.40) (0.40) (0.41) (0.45) (0.48)
Distributions from net gain realized ......... -- -- (0.50) (0.13) (0.03)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... 0.12 0.40 (1.54) 0.65 0.17
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 7.70 $ 7.58 $ 7.18 $ 8.72 $ 8.07
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.97% 11.48% (7.83)% 16.00% 8.84%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.80% 0.86% 0.85% 0.86% 0.77%
Net investment income to average net assets .. 5.19% 5.46% 5.30% 5.49% 6.02%
Portfolio turnover ........................... 33.99% 24.91% 24.86% 72.68% 63.99%
Net assets, end of period (000s omitted) ..... $ 98,767 $ 104,184 $ 111,374 $ 136,394 $ 132,130
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-------------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ------------ ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.57 $ 7.18 $ 8.20
--------- --------- ---------
Net investment income ........................ 0.33 0.32 0.22
Net realized and unrealized gain (loss) ...... 0.13 0.39 (1.02)
--------- --------- ---------
Increase (decrease) from investment operations 0.46 0.71 (0.80)
Dividends paid or declared ................... (0.33) (0.32) (0.22)
Distributions from net gain realized ......... -- -- --
--------- --------- ---------
Net increase (decrease) in net asset value ... 0.13 0.39 (1.02)
--------- --------- ---------
Net asset value, end of period ............... $ 7.70 $ 7.57 $ 7.18
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.13% 10.17% (9.96)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.67% 1.95% 1.76%+
Net investment income to average net assets .. 4.27% 4.40% 4.37%+
Portfolio turnover ........................... 33.99% 24.91% 24.86%++
Net assets, end of period (000s omitted) ..... $ 4,826 $ 1,215 $ 446
</TABLE>
- ----------
See footnotes on page 59.
53
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLORADO SERIES
CLASS A
------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.30 $ 7.09 $ 7.76 $ 7.34 $ 7.22
---------- ---------- ---------- ---------- ----------
Net investment income ........................ 0.37 0.38 0.37 0.39 0.42
Net realized and unrealized gain (loss) ...... (0.03) 0.21 (0.59) 0.49 0.12
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment operations 0.34 0.59 (0.22) 0.88 0.54
Dividends paid or declared ................... (0.37) (0.38) (0.37) (0.39) (0.42)
Distributions from net gain realized ......... -- -- (0.08) (0.07) --
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... (0.03) 0.21 (0.67) 0.42 0.12
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 7.27 $ 7.30 $ 7.09 $ 7.76 $ 7.34
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 4.76% 8.56% (2.92)% 12.54% 7.74%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.85% 0.93% 0.86% 0.90% 0.81%
Net investment income to average net assets .. 5.07% 5.31% 5.06% 5.21% 5.81%
Portfolio turnover ........................... 12.39% 14.70% 10.07% 14.09% 23.22%
Net assets, end of period (000s omitted) ..... $ 52,295 $ 54,858 $ 58,197 $ 67,912 $ 64,900
</TABLE>
<TABLE>
<CAPTION>
COLORADO SERIES CLASS D
-----------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.29 $ 7.09 $ 7.72
------- ------- -------
Net investment income ........................ 0.31 0.30 0.20
Net realized and unrealized gain (loss) ...... (0.02) 0.20 (0.63)
------- ------- -------
Increase (decrease) from investment operations 0.29 0.50 (0.43)
Dividends paid or declared ................... (0.31) (0.30) (0.20)
Distributions from net gain realized ......... -- -- --
------- ------- -------
Net increase (decrease) in net asset value ... (0.02) 0.20 (0.63)
------- ------- -------
Net asset value, end of period ............... $ 7.27 $ 7.29 $ 7.09
======= ======= =======
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 3.95% 7.26% (5.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.75% 2.02% 1.78%+
Net investment income to average net assets .. 4.17% 4.23% 4.05%+
Portfolio turnover ........................... 12.39% 14.70% 10.07%++
Net assets, end of period (000s omitted) ..... $ 255 $ 193 $ 96
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES CLASS A
PER SHARE OPERATING ------------------------------------------------
PERFORMANCE
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.81 $ 7.48 $ 8.43 $ 7.85 $ 7.63
---------- ---------- ---------- ---------- ----------
Net investment income* ....................... 0.39 0.39 0.41 0.43 0.46
Net realized and unrealized gain (loss) ...... 0.11 0.43 (0.86) 0.62 0.25
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment operations 0.50 0.82 (0.45) 1.05 0.71
Dividends paid or declared ................... (0.39) (0.39) (0.41) (0.43) (0.46)
Distributions from net gain realized ......... (0.05) (0.10) (0.09) (0.04) (0.03)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... 0.06 0.33 (0.95) 0.58 0.22
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 7.87 $ 7.81 $ 7.48 $ 8.43 $ 7.85
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.56% 11.66% (5.52)% 13.96% 9.64%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 0.83% 0.91% 0.73% 0.63% 0.47%
Net investment income to average net assets* . 4.94% 5.26% 5.21% 5.34% 5.95%
Portfolio turnover ........................... 16.24% 3.36% 19.34% 12.45% 10.24%
Net assets, end of period (000s omitted) ..... $ 50,995 $ 57,678 $ 61,466 $ 64,650 $ 44,585
Without management fee waiver and expense
reimbursement:*
Net investment income per share .............. $ 0.39 $ 0.40 $ 0.40 $ 0.43
Ratios:
Expenses to average net assets ............... 0.96% 0.93% 0.93% 0.87%
Net investment income to average net assets .. 5.21% 5.01% 5.04% 5.55%
</TABLE>
<TABLE>
<CAPTION>
GEORGIA SERIES CLASS D
PER SHARE OPERATING -----------------------------
PERFORMANCE YEAR ENDED
SEPTEMBER 30, 2/1/94**
---------------- TO
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.82 $ 7.49 $ 8.33
--------- --------- ---------
Net investment income* ....................... 0.32 0.32 0.22
Net realized and unrealized gain (loss) ...... 0.11 0.43 (0.84)
--------- --------- ---------
Increase (decrease) from investment operations 0.43 0.75 (0.62)
Dividends paid or declared ................... (0.32) (0.32) (0.22)
Distributions from net gain realized ......... (0.05) (0.10) --
--------- --------- ---------
Net increase (decrease) in net asset value ... 0.06 0.33 (0.84)
--------- --------- ---------
Net asset value, end of period ............... $ 7.88 $ 7.82 $ 7.49
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.60% 10.58% (7.57)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 1.73% 1.90% 1.76%+
Net investment income to average net assets* . 4.03% 4.28% 4.28%+
Portfolio turnover ........................... 16.24% 3.36% 19.34%++
Net assets, end of period (000s omitted) ..... $ 2,327 $ 2,079 $ 849
Without management fee waiver and expense
reimbursement:*
Net investment income per share .............. $ 0.31 $ 0.21
Ratios:
Expenses to average net assets ............... 1.95% 1.90%+
Net investment income to average net assets .. 4.23% 4.15%+
</TABLE>
- ----------
See footnotes on page 59.
54
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
LOUISIANA SERIES -----------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: -----------------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.14 $ 7.94 $ 8.79 $ 8.38 $ 8.18
---------- ---------- ---------- ---------- ----------
Net investment income ........................ 0.42 0.43 0.44 0.46 0.49
Net realized and unrealized gain (loss) ...... 0.08 0.34 (0.77) 0.51 0.24
---------- ---------- ---------- ---------- ----------
Increase (decrease) from invest.0ent operations 0.50 0.77 (0.33) 0.97 0.73
Dividends paid or declared ................... (0.42) (0.43) (0.44) (0.46) (0.49
Distributions from net gain realized ......... (0.06) (0.14) (0.08) (0.10) (0.04
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... 0.02 0.20 (0.85) 0.41 0.20
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 8.16 $ 8.14 $ 7.94 $ 8.79 $ 8.38
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.32% 10.30% (3.83)% 12.10% 9.13%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.82% 0.89% 0.87% 0.87% 0.80%
Net investment income to average net assets .. 5.15% 5.44% 5.31% 5.40% 5.89%
Portfolio turnover ........................... 10.08% 4.82% 17.16% 9.21% 25.45%
Net assets, end of period (000s omitted) ..... $ 57,264 $ 61,988 $ 61,441 $ 67,529 $ 57,931
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------
YEAR ENDED 2/1/94**
PER SHARE OPERATING SEPTEMBER 30, TO
PERFORMANCE: ----------------
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.14 $ 7.94 $ 8.73
------- ------- -------
Net investment income ........................ 0.35 0.35 0.24
Net realized and unrealized gain (loss) ...... 0.08 0.34 (0.79)
------- ------- -------
Increase (decrease) from investment operations 0.43 0.69 (0.55)
Dividends paid or declared ................... (0.35) (0.35) (0.24)
Distributions from net gain realized ......... (0.06) (0.14) --
------- ------- -------
Net increase (decrease) in net asset value ... 0.02 0.20 (0.79)
------- ------- -------
Net asset value, end of period ............... $ 8.16 $ 8.14 $ 7.94
======= ======= =======
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.37% 9.17% (6.45)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.72% 1.91% 1.78%+
Net investment income to average net assets .. 4.25% 4.41% 4.33%+
Portfolio turnover ........................... 10.08% 4.82% 17.16%++
Net assets, end of period (000s omitted) ..... $ 389 $ 465 $ 704
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES CLASS A
--------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: --------------------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.96 $ 7.71 $ 8.64 $ 8.15 $ 7.94
---------- ---------- ---------- ---------- ----------
Net investment income ........................ 0.40 0.41 0.42 0.44 0.46
Net realized and unrealized gain (loss) ...... 0.06 0.38 (0.76) 0.59 0.24
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment operations 0.46 0.79 (0.34) 1.03 0.70
Dividends paid or declared ................... (0.40) (0.41) (0.42) (0.44) (0.46)
Distributions from net gain realized ......... (0.03) (0.13) (0.17) (0.10) (0.03)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... 0.03 0.25 (0.93) 0.49 0.21
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 7.99 $ 7.96 $ 7.71 $ 8.64 $ 8.15
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.00% 10.90% (4.08)% 13.23% 9.15%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.84% 0.96% 0.92% 0.97% 0.86%
Net investment income to average net assets .. 5.05% 5.31% 5.17% 5.28% 5.76%
Portfolio turnover ........................... 5.56% 3.63% 17.68% 14.10% 29.57%
Net assets, end of period (000s omitted) ..... $ 54,041 $ 56,290 $ 57,263 $ 64,472 $ 57,208
</TABLE>
<TABLE>
<CAPTION>
MARYLAND SERIES CLASS D
---------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------ TO
1996 1995 9/30/94
---- ---- -------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.97 $ 7.72 $ 8.46
--------- --------- ---------
Net investment income ........................ 0.33 0.33 0.23
Net realized and unrealized gain (loss) ...... 0.05 0.38 (0.74)
--------- --------- ---------
Increase (decrease) from investment operations 0.38 0.71 (0.51)
Dividends paid or declared ................... (0.33) (0.33) (0.23)
Distributions from net gain realized ......... (0.03) (0.13) --
--------- --------- ---------
Net increase (decrease) in net asset value ... 0.02 0.25 (0.74)
--------- --------- ---------
Net asset value, end of period ............... $ 7.99 $ 7.97 $ 7.72
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 4.91% 9.75% (6.21)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.72% 2.02% 1.80%+
Net investment income to average net assets .. 4.14% 4.27% 4.26%+
Portfolio turnover ........................... 5.56% 3.63% 17.68%++
Net assets, end of period (000s omitted) ..... $ 2,047 $ 630 $ 424
</TABLE>
- ----------
See footnotes on page 59.
55
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES CLASS A
-------------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ------------------------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.91 $ 7.66 $ 8.54 $ 8.06 $ 7.86
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.41 0.42 0.44 0.47 0.49
Net realized and unrealized gain (loss) ...... 0.05 0.28 (0.67) 0.55 0.24
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.46 0.70 (0.23) 1.02 0.73
Dividends paid or declared ................... (0.41) (0.42) (0.44) (0.47) (0.49)
Distributions from net gain realized ......... (0.11) (0.03) (0.21) (0.07) (0.04)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... (0.06) 0.25 (0.88) 0.48 0.20
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 7.85 $ 7.91 $ 7.66 $ 8.54 $ 8.06
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.97% 9.58% (2.94)% 13.18% 9.75%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.80% 0.86% 0.85% 0.88% 0.77%
Net investment income to average net assets .. 5.24% 5.51% 5.46% 5.65% 6.27%
Portfolio turnover ........................... 26.30% 16.68% 12.44% 20.66% 27.92%
Net assets, end of period (000s omitted) ..... $ 109,872 $ 115,711 $ 120,149 $ 139,504 $ 128,334
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS SERIES CLASS D
-------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------ TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.90 $ 7.66 $ 8.33
--------- --------- ---------
Net investment income ........................ 0.34 0.34 0.24
Net realized and unrealized gain (loss) ...... 0.05 0.27 (0.67)
--------- --------- ---------
Increase (decrease) from investment operations 0.39 0.61 (0.43)
Dividends paid or declared ................... (0.34) (0.34) (0.24)
Distributions from net gain realized ......... (0.11) (0.03) --
--------- --------- ---------
Net increase (decrease) in net asset value ... (0.06) 0.24 (0.67)
--------- --------- ---------
Net asset value, end of period ............... $ 7.84 $ 7.90 $ 7.66
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.01% 8.33% (5.34)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.70% 1.95% 1.78%+
Net investment income to average net assets .. 4.32% 4.47% 4.52%+
Portfolio turnover ........................... 26.30% 16.68% 12.44%++
Net assets, end of period (000s omitted) ..... $ 1,405 $ 809 $ 1,099
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES CLASS A
----------------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ---------------------------------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.54 $ 8.28 $ 9.08 $ 8.68 $ 8.38
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.45 0.46 0.46 0.47 0.50
Net realized and unrealized gain (loss) ...... 0.06 0.30 (0.71) 0.59 0.35
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.51 0.76 (0.25) 1.06 0.85
Dividends paid or declared ................... (0.45) (0.46) (0.46) (0.47) (0.50)
Distributions from net gain realized ......... (0.14) (0.04) (0.09) (0.19) (0.05)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... (0.08) 0.26 (0.80) 0.40 0.30
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 8.46 $ 8.54 $ 8.28 $ 9.08 $ 8.68
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.16% 9.56% (2.90)% 12.97% 10.55%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.78% 0.87% 0.84% 0.83% 0.76%
Net investment income to average net assets .. 5.29% 5.50% 5.32% 5.41% 5.93%
Portfolio turnover ........................... 19.62% 20.48% 10.06% 6.33% 32.12%
Net assets, end of period (000s omitted) ..... $ 148,178 $ 151,589 $ 151,095 $ 164,638 $ 144,524
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN SERIES CLASS D
---------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------ TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.54 $ 8.28 $ 9.01
--------- --------- ---------
Net investment income ........................ 0.37 0.37 0.25
Net realized and unrealized gain (loss) ...... 0.05 0.30 (0.73)
--------- --------- ---------
Increase (decrease) from investment operations 0.42 0.67 (0.48)
Dividends paid or declared ................... (0.37) (0.37) (0.25)
Distributions from net gain realized ......... (0.14) (0.04) --
--------- --------- ---------
Net increase (decrease) in net asset value ... (0.09) 0.26 (0.73)
--------- --------- ---------
Net asset value, end of period ............... $ 8.45 $ 8.54 $ 8.28
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.09% 8.36% (5.47)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.68% 2.01% 1.75%+
Net investment income to average net assets .. 4.39% 4.40% 4.40%+
Portfolio turnover ........................... 19.62% 20.48% 10.06%++
Net assets, end of period (000s omitted) ..... $ 1,486 $ 1,172 $ 671
</TABLE>
- ----------
See footnotes on page 59.
56
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA SERIES CLASS A
-------------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: -------------------------------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.82 $ 7.72 $ 8.28 $ 7.89 $ 7.81
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.42 0.45 0.45 0.47 0.49
Net realized and unrealized gain (loss) ...... (0.12) 0.11 (0.44) 0.51 0.09
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.30 0.56 0.01 0.98 0.58
Dividends paid or declared ................... (0.42) (0.45) (0.45) (0.47) (0.49)
Distributions from net gain realized ......... (0.02) (0.01) (0.12) (0.12) (0.01)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... (0.14) 0.10 (0.56) 0.39 0.08
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 7.68 $ 7.82 $ 7.72 $ 8.28 $ 7.89
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 3.99% 7.61% 0.12% 13.06% 7.71%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.81% 0.87% 0.85% 0.90% 0.80%
Net investment income to average net assets .. 5.47% 5.89% 5.70% 5.89% 6.29%
Portfolio turnover ........................... 26.89% 5.57% 3.30% 5.73% 12.08%
Net assets, end of period (000s omitted) ..... $ 126,173 $ 132,716 $ 134,990 $ 144,600 $ 151,922
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA SERIES CLASS D
---------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ----------------------- TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.82 $ 7.73 $ 8.22
--------- --------- ---------
Net investment income ........................ 0.35 0.38 0.25
Net realized and unrealized gain (loss) ...... (0.12) 0.10 (0.49)
--------- --------- ---------
Increase (decrease) from investment operations 0.23 0.48 (0.24)
Dividends paid or declared ................... (0.35) (0.38) (0.25)
Distributions from net gain realized ......... (0.02) (0.01) --
--------- --------- ---------
Net increase (decrease) in net asset value ... (0.14) 0.09 (0.49)
--------- --------- ---------
Net asset value, end of period ............... $ 7.68 $ 7.82 $ 7.73
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 3.06% 6.45% (3.08)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.71% 1.85% 1.74%+
Net investment income to average net assets .. 4.57% 4.92% 4.68%+
Portfolio turnover ........................... 26.89% 5.57% 3.30%++
Net assets, end of period (000s omitted) ..... $ 2,036 $ 2,237 $ 1,649
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES CLASS A
-------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: --------------------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.70 $ 7.41 $ 8.31 $ 7.80 $ 7.72
---------- ---------- ---------- ---------- ----------
Net investment income* ....................... 0.39 0.40 0.40 0.42 0.44
Net realized and unrealized gain (loss) ...... 0.08 0.36 (0.79) 0.57 0.15
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment operations 0.47 0.76 (0.39) 0.99 0.59
Dividends paid or declared ................... (0.39) (0.40) (0.40) (0.42) (0.44)
Distributions from net gain realized ......... (0.07) (0.07) (0.11) (0.06) (0.07)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... 0.01 0.29 (0.90) 0.51 0.08
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 7.71 $ 7.70 $ 7.41 $ 8.31 $ 7.80
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.27% 10.67% (4.85)% 13.17% 7.87%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 0.86% 0.88% 0.74% 0.71% 0.83%
Net investment income to average net assets* . 5.03% 5.31% 5.18% 5.29% 5.71%
Portfolio turnover ........................... 8.04% 3.88% 14.33% 17.03% 18.80%
Net assets, end of period (000s omitted) ..... $ 49,941 $ 51,169 $ 52,621 $ 56,861 $ 49,459
Without management fee waiver and expense
reimbursement:*
Net investment income per share .............. $ 0.39 $ 0.39 $ 0.41
Ratios:
Expenses to average net assets ............... 0.93% 0.88% 0.91%
Net investment income to average net assets .. 5.26% 5.04% 5.09%
</TABLE>
<TABLE>
<CAPTION>
MISSOURI SERIES CLASS D
------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ---------------------- TO
1996 1995 9/30/94
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.70 $ 7.41 $ 8.20
------- ------- -------
Net investment income* ....................... 0.32 0.32 0.22
Net realized and unrealized gain (loss) ...... 0.09 0.36 (0.79)
------- ------- -------
Increase (decrease) from investment operations 0.41 0.68 (0.57)
Dividends paid or declared ................... (0.32) (0.32) (0.22)
Distributions from net gain realized ......... (0.07) (0.07) --
------- ------- -------
Net increase (decrease) in net asset value ... 0.02 0.29 (0.79)
------- ------- -------
Net asset value, end of period ............... $ 7.72 $ 7.70 $ 7.41
======= ======= =======
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.46% 9.49% (7.16)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 1.76% 1.98% 1.70%+
Net investment income to average net assets* . 4.13% 4.23% 4.27%+
Portfolio turnover ........................... 8.04% 3.88% 14.33%++
Net assets, end of period (000s omitted) ..... $ 565 $ 515 $ 350
Without management fee waiver and expense
reimbursement:*
Net investment income per share .............. $ 0.32 $ 0.22
Ratios:
Expenses to average net assets ............... 2.03% 1.80%+
Net investment income to average net assets .. 4.18% 4.17%+
</TABLE>
57
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK SERIES CLASS A
----------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: ----------------------------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.86 $ 7.67 $ 8.75 $ 8.13 $ 7.94
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.42 0.42 0.43 0.45 0.49
Net realized and unrealized gain (loss) ...... 0.12 0.36 (0.88) 0.74 0.26
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.54 0.78 (0.45) 1.19 0.75
Dividends paid or declared ................... (0.42) (0.42) (0.43) (0.45) (0.49)
Distributions from net gain realized ......... -- (0.17) (0.20) (0.12) (0.07)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... 0.12 0.19 (1.08) 0.62 0.19
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 7.98 $ 7.86 $ 7.67 $ 8.75 $ 8.13
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 6.97% 10.93% (5.37)% 15.26% 9.80%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.77% 0.88% 0.87% 0.94% 0.79%
Net investment income to average net assets .. 5.24% 5.52% 5.31% 5.37% 6.09%
Portfolio turnover ........................... 25.88% 34.05% 28.19% 27.90% 42.90%
Net assets, end of period (000s omitted) ..... $ 82,719 $ 83,980 $ 90,914 $ 104,685 $ 92,681
</TABLE>
<TABLE>
<CAPTION>
NEW YORK SERIES CLASS D
-------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------ TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.87 $ 7.67 $ 8.55
--------- --------- ---------
Net investment income ........................ 0.34 0.34 0.23
Net realized and unrealized gain (loss) ...... 0.11 0.37 (0.88)
--------- --------- ---------
Increase (decrease) from investment operations 0.45 0.71 (0.65)
Dividends paid or declared ................... (0.34) (0.34) (0.23)
Distributions from net gain realized ......... -- (0.17) --
--------- --------- ---------
Net increase (decrease) in net asset value ... 0.11 0.20 (0.88)
--------- --------- ---------
Net asset value, end of period ............... $ 7.98 $ 7.87 $ 7.67
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.86% 9.87% (7.73)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.68% 1.96% 1.81%+
Net investment income to average net assets .. 4.33% 4.42% 4.39%+
Portfolio turnover ........................... 25.88% 34.05% 28.19%++
Net assets, end of period (000s omitted) ..... $ 1,152 $ 885 $ 476
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES CLASS A
------------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: -------------------------------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.11 $ 7.90 $ 8.77 $ 8.28 $ 8.06
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.43 0.44 0.44 0.46 0.49
Net realized and unrealized gain (loss) ...... 0.02 0.28 (0.70) 0.56 0.26
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.45 0.72 (0.26) 1.02 0.75
Dividends paid or declared ................... (0.43) (0.44) (0.44) (0.46) (0.49)
Distributions from net gain realized ......... (0.04) (0.07) (0.17) (0.07) (0.04)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... (0.02) 0.21 (0.87) 0.49 0.22
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 8.09 $ 8.11 $ 7.90 $ 8.77 $ 8.28
=========== =========== =========== =========== ===========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.68% 9.59% (3.08)% 12.81% 9.68%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.77% 0.84% 0.84% 0.85% 0.75%
Net investment income to average net assets .. 5.32% 5.56% 5.34% 5.44% 6.02%
Portfolio turnover ........................... 12.90% 2.96% 9.37% 30.68% 7.15%
Net assets, end of period (000s omitted) ..... $ 162,243 $ 170,191 $ 171,469 $ 190,083 $ 170,427
</TABLE>
<TABLE>
<CAPTION>
OHIO SERIES CLASS D
--------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: --------------------------- TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 8.15 $ 7.92 $ 8.61
--------- --------- ---------
Net investment income ........................ 0.36 0.36 0.24
Net realized and unrealized gain (loss) ...... 0.02 0.30 (0.69)
--------- --------- ---------
Increase (decrease) from investment operations 0.38 0.66 (0.45)
Dividends paid or declared ................... (0.36) (0.36) (0.24)
Distributions from net gain realized ......... (0.04) (0.07) --
--------- --------- ---------
Net increase (decrease) in net asset value ... (0.02) 0.23 (0.69)
--------- --------- ---------
Net asset value, end of period ............... $ 8.13 $ 8.15 $ 7.92
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 4.74% 8.67% (5.36)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.67% 1.93% 1.78%+
Net investment income to average net assets .. 4.42% 4.48% 4.41%+
Portfolio turnover ........................... 12.90% 2.96% 9.37%++
Net assets, end of period (000s omitted) ..... $ 1,011 $ 660 $ 324
</TABLE>
- ----------
See footnotes on page 59.
58
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OREGON SERIES CLASS A
-------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: --------------------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.66 $ 7.43 $ 8.08 $ 7.60 $ 7.42
---------- ---------- ---------- ---------- ----------
Net investment income* ....................... 0.40 0.40 0.40 0.42 0.42
Net realized and unrealized gain (loss) ...... -- 0.25 (0.59) 0.48 0.18
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment operations 0.40 0.65 (0.19) 0.90 0.60
Dividends paid or declared ................... (0.40) (0.40) (0.40) (0.42) (0.42)
Distributions from net gain realized ......... (0.01) (0.02) (0.06) -- --
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value ... (0.01) 0.23 (0.65) 0.48 0.18
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............... $ 7.65 $ 7.66 $ 7.43 $ 8.08 $ 7.60
========== ========== ========== ========== ==========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 5.27% 9.05% (2.38)% 12.21% 8.35%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 0.86% 0.86% 0.78% 0.78% 0.68%
Net investment income to average net assets* . 5.18% 5.40% 5.20% 5.35% 5.63%
Portfolio turnover ........................... 28.65% 2.47% 9.43% 8.08% 0.21%
Net assets, end of period (000s omitted) ..... $ 57,345 $ 59,549 $ 59,884 $ 62,095 $ 48,797
Without management fee waiver and
expense reimbursement:*
Net investment income per share .............. $ 0.40 $ 0.39 $ 0.41 $ 0.42
Ratios:
Expenses to average net assets ............. 0.91% 0.89% 0.93% 0.83%
Net investment income to average net assets 5.35% 5.09% 5.20% 5.48%
</TABLE>
<TABLE>
<CAPTION>
OREGON SERIES CLASS D
----------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------- TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.65 $ 7.43 $ 8.02
--------- --------- ---------
Net investment income* ....................... 0.33 0.33 0.22
Net realized and unrealized gain (loss) ...... -- 0.24 (0.59)
--------- --------- ---------
Increase (decrease) from investment operations 0.33 0.57 (0.37)
Dividends paid or declared ................... (0.33) (0.33) (0.22)
Distributions from net gain realized ......... (0.01) (0.02) --
--------- --------- ---------
Net increase (decrease) in net asset value ... (0.01) 0.22 (0.59)
--------- --------- ---------
Net asset value, end of period ............... $ 7.64 $ 7.65 $ 7.43
========= ========= =========
TOTAL RETURN BASED
ON NET ASSET VALUE: ........................ 4.33% 7.86% (4.76)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets* .............. 1.76% 1.83% 1.72%+
Net investment income to average net assets* . 4.28% 4.41% 4.32%+
Portfolio turnover ........................... 28.65% 2.47% 9.43%++
Net assets, end of period (000s omitted) ..... $ 1,540 $ 1,495 $ 843
Without management fee waiver and
expense reimbursement:*
Net investment income per share .............. $ 0.33 $ 0.22
Ratios:
Expenses to average net assets ............. 1.88% 1.82%+
Net investment income to average net assets 4.36% 4.22%+
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES CLASS A
--------------------------------------------------------------------------------
PER SHARE OPERATING YEAR ENDED SEPTEMBER 30,
PERFORMANCE: --------------------------------------------------------------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.97 $ 7.61 $ 8.52 $ 8.00 $ 7.71
----------- ----------- ----------- ----------- -----------
Net investment income ........................ 0.41 0.41 0.41 0.43 0.45
Net realized and unrealized gain (loss) ...... 0.12 0.37 (0.79) 0.54 0.31
----------- ----------- ----------- ----------- -----------
Increase (decrease) from investment operations 0.53 0.78 (0.38) 0.97 0.76
Dividends paid or declared ................... (0.41) (0.41) (0.41) (0.43) (0.45)
Distributions from net gain realized ......... (0.02) (0.01) (0.12) (0.02) (0.02)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value ... 0.10 0.36 (0.91) 0.52 0.29
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............... $ 8.07 $ 7.97 $ 7.61 $ 8.52 $ 8.00
=========== =========== =========== =========== ===========
TOTAL RETURN BASED ON
NET ASSET VALUE: ........................... 6.82% 10.69% (4.61)% 12.52% 10.08%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 0.80% 0.88% 0.83% 0.85% 0.81%
Net investment income to average net assets .. 5.15% 5.38% 5.12% 5.19% 5.71%
Portfolio turnover ........................... 20.66% 4.13% 1.81% 17.69% 3.37%
Net assets, end of period (000s omitted) ..... $ 108,163 $ 112,421 $ 115,133 $ 120,589 $ 82,882
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA SERIES CLASS D
--------------------------------------
YEAR ENDED
PER SHARE OPERATING SEPTEMBER 30, 2/1/94**
PERFORMANCE: ------------------------ TO
1996 1995 9/30/94
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 7.97 $ 7.61 $ 8.42
--------- --------- ---------
Net investment income ........................ 0.34 0.34 0.22
Net realized and unrealized gain (loss) ...... 0.11 0.37 (0.81)
--------- --------- ---------
Increase (decrease) from investment operations 0.45 0.71 (0.59)
Dividends paid or declared ................... (0.34) (0.34) (0.22)
Distributions from net gain realized ......... (0.02) (0.01) --
--------- --------- ---------
Net increase (decrease) in net asset value ... 0.09 0.36 (0.81)
--------- --------- ---------
Net asset value, end of period ............... $ 8.06 $ 7.97 $ 7.61
========= ========= =========
TOTAL RETURN BASED ON
NET ASSET VALUE: ........................... 5.73% 9.63% (7.14)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.70% 1.85% 1.74%+
Net investment income to average net assets .. 4.25% 4.40% 4.29%+
Portfolio turnover ........................... 20.66% 4.13% 1.81%++
Net assets, end of period (000s omitted) ..... $ 2,714 $ 1,704 $ 1,478
</TABLE>
- ----------
* During the periods stated, the Manager at its discretion, waived all or
portions of its fees for the Georgia, Missouri, and Oregon Series.
** Commencement of offering of Class D shares.
+ Annualized
++ For the year ended September 30, 1994.
See Notes to Financial Statements.
59
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN MUNICIPAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the National, Colorado, Georgia, Louisiana,
Maryland, Massachusetts, Michigan, Minnesota, Missouri, New York, Ohio, Oregon
and South Carolina Series of Seligman Municipal Fund Series, Inc. (formerly
Seligman Tax-Exempt Fund Series, Inc.) as of September 30, 1996, 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
September 30, 1996 by correspondence with the Fund's custodian 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 each Series of
Seligman Municipal Fund Series, Inc. as of September 30, 1996, the results of
their operations, the changes in their net assets, and the financial highlights
for the respective stated periods, in conformity with generally accepted
accounting principles.
/s/DELOITTE & TOUCHE LLP
New York, New York
October 30, 1996
60
<PAGE>
================================================================================
PROXY RESULTS
- --------------------------------------------------------------------------------
Seligman Municipal Fund Series, Inc. Shareholders voted on the following
proposals at the Special Meeting of Shareholders held on September 30, 1996, in
New York, NY. Each Director was elected, and all other proposals were approved.
The description of each proposal and number of shares voted are as follows:
ELECTION OF DIRECTORS:
FOR WITHHELD
--- ---------
Fred E. Brown 85,846,451 2,140,661
John R. Galvin 85,851,675 2,135,437
Alice S. Ilchman 85,818,039 2,169,073
Frank A. McPherson 85,831,415 2,155,697
John E. Merow 85,937,945 2,049,167
Betsy S. Michel 85,974,898 2,012,214
William C. Morris 85,968,753 2,018,359
James C. Pitney 85,895,550 2,091,562
James Q. Riordan 85,913,398 2,073,714
Ronald T. Schroeder 85,962,440 2,024,672
Robert L. Shafer 85,878,304 2,108,808
James N. Whitson 85,947,104 2,040,008
Brian T. Zino 85,976,353 2,010,759
RATIFICATION OF DELOITTE & TOUCHE LLP AS INDEPENDENT AUDITORS:
FOR AGAINST ABSTAIN NON-VOTE
- --- ------- ------- ---------
83,599,827 570,927 3,816,358 n/a
APPROVAL TO PERMIT ANY PORTION OF INVESTMENTS IN SECURITIES SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX:
SERIES FOR AGAINST ABSTAIN NON-VOTE
- --------------- --------- ------- --------- -------
National 6,660,927 419,838 577,103 171,544
Colorado 3,015,391 283,717 415,886 152,733
Georgia 3,947,344 188,085 337,558 103,516
Louisiana 3,581,306 507,762 312,014 104,266
Maryland 3,310,346 367,134 282,861 117,675
Massachusetts 6,572,489 614,584 533,388 586,521
Michigan 7,889,523 718,166 1,005,536 570,903
Minnesota 6,885,355 753,334 741,214 310,607
Missouri 2,980,511 300,450 204,955 54,336
New York 4,635,959 432,369 364,351 347,030
Ohio 9,844,272 878,590 870,677 623,238
Oregon 3,956,882 448,353 537,848 132,156
South Carolina 8,145,526 425,295 634,086 131,602
61
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2
DEAN, Fletcher School of Law
and Diplomacy at Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3
PRESIDENT, Sarah Lawrence College
TRUSTEE, Committee for Economic Development
DIRECTOR, NYNEX
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2
CHAIRMAN AND CEO, Kerr-McGee Corporation
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Aluminum Corporation
BETSY S. MICHEL 2
DIRECTOR OR TRUSTEE, Various Organizations
WILLIAM C. MORRIS 1
CHAIRMAN
CHAIRMAN OF THE BOARD AND PRESIDENT,
J. & W. Seligman & Co. Incorporated
CHAIRMAN, Carbo Ceramics Inc.
DIRECTOR, Kerr-McGee Corporation
JAMES C. PITNEY 3
PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
DIRECTOR, Public Service Enterprise Group
JAMES Q. RIORDAN 3
DIRECTOR, The Brooklyn Union Gas Company
TRUSTEE, Committee for Economic Development
DIRECTOR, Dow Jones & Co., Inc.
DIRECTOR, Public Broadcasting Service
RONALD T. SCHROEDER 1
MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3
DIRECTOR OR TRUSTEE,
Various Organizations
JAMES N. WHITSON 2
EXECUTIVE VICE PRESIDENT AND DIRECTOR,
Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
PRESIDENT
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
- ----------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
62
<PAGE>
================================================================================
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
THOMAS G. MOLES
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
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) 622-4597 24-HOUR AUTOMATED TELEPHONE ACCESS SERVICE
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
Part A- Financial Highlights for Class A shares for the ten years ended
September 30, 1996 or from commencements of operations to September
30, 1996. Financial Highlights for Class D shares for the period
February 1, 1994 (commencement of operations) to September 30, 1996.
Part B - Required Financial Statements for each series of the Fund are
included in the Fund's Annual Report to shareholders, dated September
30, 1996, which is incorporated by reference in the Statement of
Additional Information. These Financial Statements are: Portfolios of
Investments as of September 30, 1996; Statements of Assets and
Liabilities as of September 30, 1996; Statements of Operations for the
year ended September 30, 1996; Statements of Changes in Net Assets for
the years ended September 30, 1996 and September 30, 1995; Notes to
Financial Statements; Financial Highlights for the five years ended
September 30, 1996 for the Fund's Class A shares and for the period
February 1, 1994 (commencement of operations) to September 30, 1996
for the Fund's Class D shares; Report of Independent Auditors.
(b) Exhibits: All Exhibits have been previously filed and are incorporated
herein by reference, except Exhibits marked with an asterisk (*) which
are attached hereto.7
(1) Amended and Restated Articles of Incorporation of Registrant.*
(2) Amended and Restated By-Laws of the Registrant.*
(3) Not applicable.
(4) Copy of Specimen certificate of Capital Stock for Class D Shares.*
(5) Management Agreement between the Registrant and J. & W. Seligman & Co.
Incorporated.*
(6) Distributing Agreement between Registrant and Seligman Financial
Services, Inc.*
(6a) Sales Agreement between Dealers and Seligman Financial Services, Inc.*
(7) Matched Accumulation Plan of J. & W. Seligman & Co. Incorporated.*
(7a) Deferred Compensation Plan for Directors of Seligman Group of Funds.*
(8) Custodian Agreement between Registrant and Investors Fiduciary Trust
Company.*
(9) Not applicable.
(10) Opinion and Consent of Counsel.*
(11) Consent of Independent Auditors.*
(11a) Opinion and Consent of Colorado Counsel.*
(11b) Opinion and Consent of Georgia Counsel.*
(11c) Opinion and Consent of Louisiana Counsel.*
(11d) Opinion and Consent of Maryland Counsel.*
(11e) Opinion and Consent of Massachusetts Counsel.*
(11f) Opinion and Consent of Michigan Counsel.*
(11g) Opinion and Consent of Minnesota Counsel.*
(11h) Opinion and Consent of Missouri Counsel.*
(11i) Opinion and Consent of New York Counsel.*
(11j) Opinion and Consent of Ohio Counsel.*
(11k) Opinion and Consent of Oregon Counsel.*
(11l) Opinion and Consent of South Carolina Counsel.*
(12) Not applicable.
<PAGE>
PART C. OTHER INFORMATION (continued)
(13) Purchase Agreement for Initial Capital for Class D shares.*
(14) Copy of amended Individual Retirement Account Trust and Related Documents.
(Incorporated by reference to Registrant's Post-Effective Amendment No. 24
filed on November 30, 1992.)
(14a)Copy of amended Comprehensive Retirement Plans for Money Purchase and/or
Prototype Profit Sharing Plan. (Incorporated by reference to Registrant's
Post-Effective Amendment No. 24 filed on November 30, 1992.)
(14b)Copy of amended Basic Business Retirement Plans for Money Purchase and/or
Profit Sharing Plans. (Incorporated by reference to Registrant's
Post-Effective Amendment No. 24 filed on November 30, 1992.)
(14c)Copy of amended 403(b)(7) Custodial Account Plan. (Incorporated by
reference to Seligman New Jersey Municipal Fund, Inc. Pre-Effective
Amendment No. 1 filed on January 11, 1988.)
(14d)Copy of amended Simplified Employee Pension Plan (SEP). (Incorporated by
reference to Registrant's Post-Effective Amendment No. 24 filed on November
30, 1992.)
(14e)Copy of the amended J. & W. Seligman & Co. Incorporated (SARSEP) Salary
Reduction and Other Elective Simplified Employee Pension-Individual
Retirement Accounts Contribution Agreement (Under Section 408(k) of the
Internal Revenue Code). (Incorporated by reference to Registrant's
Post-Effective Amendment No. 24 filed on November 30, 1992.)
(15) Amended Administration, Shareholder Services and Distribution Plan and form
of Agreement of the Registrant.*
(16) Schedule for computation of tax equivalent yield and schedule for
computation of each performance quotation provided in Registration
Statement in response to Item 22.*
(17) Financial Data Schedules meeting the requirements of Rule 483 under the
Securities Act of 1933.*
(18) Copy of Multiclass Plan entered into by Registrant pursuant to Rule 18f-3
under the Investment Company Act of 1940.*
Item 25. Persons Controlled by or Under Common Control with Registrant - None.
Item 26. Number of Holders of Securities - As of January 10, 1997, the number
of record holders of each Series' Class A and Class D shares of the
Registrant was as follows:
Class A Class D
Title of Series Record Holders Record Holders
--------------- -------------- --------------
National Municipal Series 2,412 52
Colorado Municipal Series 1,514 11
Georgia Municipal Series 1,194 70
Louisiana Municipal Series 970 7
Maryland Municipal Series 1,543 58
Massachusetts Municipal Series 2,577 34
Michigan Municipal Series 3,659 58
Minnesota Municipal Series 4,137 69
Missouri Municipal Series 1,475 34
New York Municipal Series 1,651 31
Ohio Municipal Series 3,951 36
Oregon Municipal Series 1,635 68
South Carolina Municipal Series 2,280 71
<PAGE>
PART C. OTHER INFORMATION (continued)
Item 27. Indemnification
Reference is made to the provisions of Articles Twelfth and Thirteenth
of Registrant's Amended and Restated Articles of Incorporation filed
as Exhibit 24(b)(1) and Article IV of Registrant's Amended and
Restated By-Laws filed as Exhibit 24(b)(2) to this Post-Effective
Amendment No. 30 to the Registration Statement.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised by the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of
such issue.
Item 28. Business and Other Connections of Investment Adviser
J. & W. Seligman & Co. Incorporated, a Delaware corporation
("Manager"), is the Registrant's investment manager. The Manager also
serves as investment manager to sixteen associated investment
companies. They are Seligman Capital Fund, Inc., Seligman Cash
Management Fund, Inc., Seligman Common Stock Fund, Inc., Seligman
Communications and Information Fund, Inc., Seligman Frontier Fund,
Inc., Seligman Growth Fund, Inc., Seligman Henderson Global Fund
Series, Inc., Seligman High Income Fund Series, Seligman Income Fund,
Inc., Seligman Municipal Series Trust, Seligman New Jersey Municipal
Fund, Inc., Seligman Pennsylvania Municipal Fund Series, Seligman
Portfolios, Inc., Seligman Quality Municipal Fund, Inc., Seligman
Select Municipal Fund, Inc. and Tri-Continental Corporation.
Item 28 The Manager has an investment advisory service division which provides
investment management or advice to private clients. The list required
by this Item 28 of officers and directors of the Manager, together
with information as to any other business, profession, vocation or
employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to
Schedules A and D or Form ADV, filed by the Manager pursuant to the
Investment Advisers Act of 1940 (SEC File No. 801-5798) on August 7,
1996.
Item 29. Principal Underwriters
(a) The names of each investment company (other than the Registrant) for
which each principal underwriter currently distributing securities of
the Registrant also acts as a principal underwriter, depositor or
investment adviser are:
Seligman Capital Fund, Inc.
Seligman Cash Management Fund, Inc.
Seligman Common Stock Fund, Inc.
Seligman Communications and Information Fund, Inc.
Seligman Frontier Fund, Inc.
Seligman Growth Fund, Inc.
Seligman Henderson Global Fund Series, Inc.
Seligman High Income Fund, Inc.
Seligman Income Fund, Inc.
Seligman Municipal Series Trust
Seligman New Jersey Municipal Fund, Inc.
Seligman Pennsylvania Municipal Fund Series
Seligman Portfolios, Inc.
<PAGE>
PART C. OTHER INFORMATION (continued)
(b) Name of each director, officer or partner of each principal
underwriter named in response to Item 21.
<TABLE>
<CAPTION>
Seligman Financial Services, Inc.
As of December 31, 1996
--------------------------------
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
---------------- ---------------- ------------------
<S> <C> <C>
William C. Morris* Director Chairman of the Board and
Chief Executive Officer
Brian T. Zino* Director President and Trustee
Ronald T. Schroeder* Director Trustee
Fred E. Brown* Director Trustee
William H. Hazen* Director None
Thomas G. Moles* Director None
David F. Stein* Director None
Stephen J. Hodgdon* President None
Lawrence P. Vogel* Senior Vice President, Finance Vice President
Ed Lynch* Senior Vice President, Director None
of Marketing
Mark R. Gordon* Senior Vice President, Director None
of Marketing
Gerald I. Cetrulo, III Senior Vice President of Sales None
140 West Parkway
Pompton Plains, NJ 07444
Bradley W. Larson Senior Vice President of Sales None
367 Bryan Drive
Danville, CA 94526
D. Ian Valentine Senior Vice President of Sales None
307 Braehead Drive
Fredericksburg, VA 22401
Bradley F. Hanson Senior Vice President of Sales, None
9707 Xylon Court Regional Sales Manager
Bloomington, MN 55438
Karen J. Bullot* Vice President, Retirement Plans None
John Carl* Vice President, Marketing None
Marsha E. Jacoby* Vice President, National Accounts None
Manager
William W. Johnson* Vice President, Order Desk None
Helen Simon* Vice President, Sales None
Administration Manager
James R. Besher Regional Vice President None
14000 Margaux Lane
Town & Country, MO 63017
Bradford C. Davis Regional Vice President None
255 4th Avenue, #2
Kirkland, WA 98033
Christopher J. Derry Regional Vice President None
2380 Mt. Lebanon Church Road
Alvaton, KY 42122
Jonathan G. Evans Regional Vice President None
222 Fairmont Way
Ft. Lauderdale, FL 33326
David L. Gardner Regional Vice President None
2504 Clublake Trail
McKinney, TX 75070
</TABLE>
<PAGE>
PART C. OTHER INFORMATION (continued)
<TABLE>
<CAPTION>
Seligman Financial Services, Inc.
As of December 31, 1996
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
------------------ --------------------- ----------------------
<S> <C> <C>
Carla A. Goehring Regional Vice President None
11426 Long Pine
Houston, TX 77077
Susan R. Gutterud Regional Vice President None
820 Humboldt, #6
Denver, CO 80218
Mark Lien Regional Vice President None
5904 Mimosa
Sedalia, MO 65301
Randy D. Lierman Regional Vice President None
2627 R.D. Mize Road
Independence, MO 64057
Judith L. Lyon Regional Vice President None
163 Haynes Bridge Road, Ste 205
Alpharetta, CA 30201
David L. Meyncke Regional Vice President None
4718 Orange Grove Way
Palm Harbor, FL 34684
Melinda A. Nawn Regional Vice President None
5850 Squire Hill Court
Cincinnati, OH 45241
Tim O'Connell Regional Vice President None
14872 Summerbreeze Way
San Diego, CA 92128
Juliana Perkins Regional Vice President None
2348 Adrian Street
Newbury Park, CA 91320
Robert H. Ruhm Regional Vice President None
167 Derby Street
Melrose, MA 02176
Diane H. Snowden Regional Vice President None
11 Thackery Lane
Cherry Hill, NJ 08003
Bruce M. Tuckey Regional Vice President None
41644 Chathman Drive
Novi, MI 48375
Andrew S. Veasey Regional Vice President None
14 Woodside
Rumson, NJ 07760
Kelli A. Wirth-Dumser Regional Vice President None
8618 Hornwood Court
Charlotte, NC 28215
Frank J. Nasta* Secretary Secretary
Aurelia Lacsamana* Treasurer None
Jeffrey S. Dean* Assistant Vice President, None
Annuity Product Manager
Sandra Floris* Assistant Vice President, Order Desk None
Keith Landry* Assistant Vice President, Order Desk None
Frank P. Marino* Assistant Vice President, Mutual
Fund Product Manager None
</TABLE>
<PAGE>
PART C. OTHER INFORMATION (continued)
<TABLE>
<CAPTION>
Seligman Financial Services, Inc.
As of December 31, 1996
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
------------------ --------------------- ----------------------
<S> <C> <C>
Joseph M. McGill* Assistant Vice President and None
Compliance Officer
Joyce Peress* Assistant Secretary None
</TABLE>
* The principal business address of each of these directors and/or officers
is 100 Park Avenue, New York, NY 10017.
(c) Not Applicable.
Item 30. Location of Accounts and Records
Custodian: Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, MO 64105 and
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, NY 10017
PART C. OTHER INFORMATION (continued)
Item 31. Management Services - Seligman Data Corp. ("SDC"), the Registrant's
shareholder service agent, has an agreement with First Data Investor
Services Group ("FDISG") pursuant to which FDISG provides a data
processing system for certain shareholder accounting and recordkeeping
functions performed by SDC, which commenced in July 1990. For the
fiscal years ended September 30, 1996, 1995 and 1994, the approximate
cost of these services for each Series was:
1996 1995 1994
---- ---- ----
National Municipal Series $13,300 $14,000 $14,897
Colorado Municipal Series 7,900 8,600 9,357
Georgia Municipal Series 6,900 7,300 7,353
Louisiana Municipal Series 5,100 5,500 5,747
Maryland Municipal Series 8,200 8,600 8,886
Massachusetts Municipal Series 13,900 14,800 15,890
Michigan Municipal Series 18,900 19,800 20,445
Minnesota Municipal Series 21,800 23,200 26,293
Missouri Municipal Series 7,900 8,300 8,621
New York Municipal Series 8,700 9,400 10,094
Ohio Municipal Series 20,600 21,700 22,932
Oregon Municipal Series 8,900 9,500 9,719
South Carolina Municipal Series 12,800 13,900 14,362
Item 32. Undertakings - The Registrant undertakes: (1) if requested to do so by
the holders of at least ten percent of its outstanding shares, to call
a meeting of shareholders for the purpose of voting upon the removal
of a director or directors and to assist in communications with other
shareholders as required by Section 16(c) of the Investment Company
Act of 1940; and (2) to furnish to each person to whom a prospectus is
delivered, a copy of the Registrant's latest annual report to
shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Post-Effective Amendment pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Post-Effective Amendment No. 30 to its Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of New
York, State of New York, on the 28th day of January, 1997.
SELIGMAN MUNICIPAL FUND SERIES, INC.
By: /s/ William C. Morris
--------------------------------
William C. Morris, Chairman*
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 30 has been signed below by the following persons
in the capacities indicated on January 28, 1997.
Signature Title
--------- -----
/s/ William C. Morris Chairman of the Board (Principal
- --------------------------- executive officer) and Director
William C. Morris*
/s/Brian T. Zino President and Director
- ---------------------------
Brian T. Zino
/s/ Thomas G. Rose Treasurer (Principal financial and
- --------------------------- accounting officer)
Thomas G. Rose
Fred E. Brown, Director )
Alice S. Ilchman, Director )
John E. Merow, Director ) /s/ Brian T. Zino
Betsy S. Michel, Director ) ---------------------------------
James C. Pitney, Director ) *Brian T. Zino, Attorney-in-fact
James Q. Riordan, Director )
Robert L. Shafer, Director )
James N. Whitson, Director )
Brian T. Zino, Director )
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
Post-Effective Amendment No. 30 to the
Registration Statement on Form N-1A
EXHIBIT INDEX
24(b)(1) Amended and Restated Articles of Incorporation of Registrant
24(b)(2) Amended and Restated By-Laws of Registrant
24(b)(5) Management Agreement between the Registrant and J. & W. Seligman
& Co. Incorporated
24(b)(6) Distributing Agreement between Registrant and Seligman Financial
Services, Inc.
24(b)(6)(a) Amended Sales Agreement between Seligman Financial Services, Inc.
and Dealer
24(b)(7) Matched Accumulation Plan of J. & W. Seligman & Co. Incorporated
24(b)(7)(a) Deferred Compensation Plan for Directors of Seligman Group of
Funds
24(b)(8) Custodian Agreement between Registrant and Investors Fiduciary
Trust Company
24(b)(10) Opinion and Consent of Counsel
24(b)(11) Consent of Independent Auditors
24(b)(11)(a) Opinion and Consent of Colorado Counsel.*
24(b)(11)(b) Opinion and Consent of Georgia Counsel.*
24(b)(11)(c) Opinion and Consent of Louisiana Counsel.*
24(b)(11)(d) Opinion and Consent of Georgia Counsel.*
24(b)(11)(e) Opinion and Consent of Massachusetts Counsel.*
24(b)(11)(f) Opinion and Consent of Michigan Counsel.*
24(b)(11)(g) Opinion and Consent of Minnesota Counsel.*
24(b)(11)(h) Opinion and Consent of Missouri Counsel.*
24(b)(11)(i) Opinion and Consent of New York Counsel.*
24(b)(11)(j) Opinion and Consent of Ohio Counsel.*
24(b)(11)(k) Opinion and Consent of Oregon Counsel.*
24(b)(11)(l) Opinion and Consent of South Carolina Counsel.*
24(b)(13) Purchase Agreement for Initial Capital for Class D Shares
24(b)(15) Amended Administration, Shareholder Services and Distribution
Plan and form of Agreement of the Registrant
24(b)(16) Performance Data Computation Schedules
24(b)(17) Financial Data Schedules
24(b)(18) Multiclass Plan
FORM OF AMENDED AND RESTATED
ARTICLES OF INCORPORATION
of
SELIGMAN MUNICIPAL FUND SERIES, INC.
FIRST: I, the subscriber, John T. Bostelman, whose post office address is
125 Broad Street, New York, New York 10004, being more than 18 years of age, do,
under and by virtue of the General Laws of the State of Maryland authorizing the
formation of corporations, form a corporation.
SECOND: Name. The name of the corporation (which is hereinafter called the
"Corporation") is
SELIGMAN MUNICIPAL FUND SERIES, INC.
THIRD: Purposes and Powers. The purpose for which the Corporation is formed
and the business or objects to be carried on or promoted by it are to engage in
the business of an investment company, and in connection therewith, to hold part
or all of its funds in cash, to acquire by purchase, subscription, contract,
exchange or otherwise, and to own, hold for investment, resale or otherwise,
sell, assign, negotiate, exchange, transfer or otherwise dispose of, or turn to
account or realize upon, and generally to deal in and with, all forms of stocks,
bonds, debentures, notes, evidences of interest, evidences of indebtedness,
warrants, certificates of deposit, bankers' acceptances, repurchase agreements
and other securities, irrespective of their form, the name by which they may be
described, or the character or form of the entities by which they are issued or
created (hereinafter sometimes called "Securities"), and to make payment
therefor by any lawful means; to exercise any and all rights, powers and
privileges of individual ownership or interest in respect of any and all such
Securities, including the right to vote thereon and to consent and otherwise act
with respect thereto; to do any and all acts and things for the preservation,
protection, improvement and enhancement in value of any and all such Securities;
to acquire or become interested in any such Securities as aforesaid,
irrespective of whether or not such Securities be fully paid or subject to
further payments, and to make payments thereon as called for or in advance of
calls or otherwise;
And, in general, to do any or all such other things in connection with the
objects and purposes of the Corporation hereinbefore set forth, as are, in the
opinion of the Board of Directors of the Corporation, necessary, incidental,
relative or conducive to the attainment of such objects and purposes; and to do
such acts and things; and to exercise any and all such powers to the same extent
authorized or permitted to a Corporation under any laws that may be now or
hereafter applicable or available to the Corporation.
-1-
<PAGE>
In addition, the Corporation may issue, sell, acquire through purchase,
exchange, or otherwise hold, dispose of, resell, transfer, reissue or cancel
shares of its capital stock in any manner and to the extent now or hereafter
permitted by the laws of Maryland and by these Articles of Incorporation.
The foregoing matters shall each be construed as purposes, objects and
powers, and none of such matters shall be in any wise limited by reference to,
or inference from, any other of such matters or any other Article of these
Articles of Incorporation, but shall be regarded as independent purposes,
objects and powers and the enumeration of specific purposes, objects and powers
shall not be construed to limit or restrict in any manner the meaning of general
terms or the general powers of the Corporation now or hereafter conferred by the
laws of the State of Maryland, nor shall the expression of one thing be deemed
to exclude another, although it be of like nature, not expressed.
Nothing herein contained shall be construed as giving the Corporation any
rights, powers or privileges not permitted to it by law.
FOURTH: Principal Office. The post office address of the principal office
of the Corporation in this State is c/o The Corporation Trust Incorporated, 32
South Street, Baltimore, Maryland 21202. The resident agent of the Corporation
is The Corporation Trust Incorporated, the post office address of which is 32
South Street, Baltimore, Maryland 21202. Said resident agent is a Corporation of
the State of Maryland.
FIFTH: Capital Stock. A. The total number of shares of all classes of stock
which the Corporation has authority to issue is 1,300,000,000 shares of common
stock ("Shares") of the par value of $0.001 each, having an aggregate par value
of $1,300,000. The Shares shall initially constitute thirteen classes,
designated as the "National Municipal Series", consisting of 100,000,000 shares,
and the "Colorado Series", consisting of 100,000,000 shares and the "Georgia
Series", consisting of 100,000,000 shares and the "Louisiana Series", consisting
of 100,000,000 shares and the "Maryland Series", consisting of 100,000,000
shares and the "Massachusetts Series", consisting of 100,000,000 shares and the
"Minnesota Series", consisting of 100,000,000 shares and the "Michigan Series",
consisting of 100,000,000 shares and the "Missouri Series", consisting of
100,000,000 shares and the "New York Series", consisting of 100,000,000 shares
and the "Ohio Series", consisting of 100,000,000 shares and the "Oregon Series"
consisting of 100,000,000 shares and the "South Carolina Series", consisting of
100,000 shares (such thirteen classes together with any further class or classes
of shares from time to time created by the Board of Directors, being herein
referred to individually as a "Class" and collectively as "Classes"). The Board
of Directors of the Corporation shall have the power and authority to futher
classify or reclassify any unissued shares from time to time by setting or
changing the preferences, conversion or other rights, voting powers,
restrictions, limitations as to dividends, qualifications, or terms or
conditions of redemption of such unissued shares.
B. A description of the relative preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption of
-2-
<PAGE>
all Classes of Shares is as follows, unless otherwise set forth in the Articles
Supplementary filed with the Maryland State Department of Assessments and
Taxation describing any further Class or Classes from time to time created by
the Board of Directors:
(i) Assets Belonging to Class. All consideration received by the
Corporation for the issue or sale of Shares of a particular Class, together
with all assets in which such consideration is invested or reinvested, all
income, earnings, profits and proceeds thereof, including any proceeds
derived from the sale, exchange or liquidation of such assets, and any
funds or payments derived from any reinvestment of such proceeds in
whatever form the same may be, shall irrevocably belong to that Class for
all purposes, subject only to the rights of creditors, and shall be so
recorded upon the books of the account of the Corporation. Such
consideration, assets, income, earnings, profits and proceeds, including
any proceeds derived from the sale, exchange or liquidation of such assets,
and any funds or payments derived from any reinvestment of such proceeds,
in whatever form the same may be, together with any General Items (as
hereinafter defined) allocated to that Class as provided in the following
sentence, are herein referred to as "assets belonging to" that Class. In
the event that there are any assets, income, earnings, profits or proceeds
thereof, funds or payments which are not readily identifiable as belonging
to any particular Class (collectively, "General Items"), the Board of
Directors shall allocate such General Items to and among any one or more of
the Classes created from time to time in such manner and on such basis as
it, in its sole discretion, deems fair and equitable; and any General Items
so allocated to a particular Class shall belong to that Class. Each such
allocation by the Board of Directors shall be conclusive and binding upon
the stockholders of all Classes for all purposes.
(ii) Liabilities Belonging to Class. The assets belonging to each
particular Class shall be charged with the liabilities of the Corporation
in respect of that Class and with all expenses, costs, charges and reserves
attributable to that Class, and shall be so recorded upon the books of
account of the Corporation. Such liabilities, expenses, costs, charges and
reserves, together with any General Items (as hereinafter defined)
allocated to that Class as provided in the following sentence, so charged
to that Class are herein referred to as "liabilities belonging to" that
Class. In the event three are any general liabilities, expenses, costs,
charges or reserves of the Corporation which are not readily identifiable
as belonging to any particular Class (collectively, "General Items"), the
Board of Directors shall allocate and charge such General Items to and
among any one or more of the Classes created from time to time in such
manner and on such basis as the Board of Directors in its sole discretion
deems fair and equitable; and any General Items so allocated and charged to
a particular Class shall belong to that Class. Each such allocation by the
Board of Directors shall be conclusive and binding upon the stockholders of
all Classes for all purposes.
-3-
<PAGE>
(iii) Dividends. Dividends and distributions on Shares of a particular
Class may be paid to the holders of Shares of that Class at such times, in
such manner and from such of the income and capital gains, accrued or
realized, from the assets belonging to that Class, after providing for
actual and accrued liabilities belonging to that Class, as the Board of
Directors may determine.
(iv) Liquidation. In event of the liquidation or dissolution of the
Corporation, the stockholders of each Class that has been created shall be
entitled to receive, as a Class, when and as declared by the Board of
Directors, the excess of the assets belonging to that Class over the
liabilities belonging to that Class. The assets so distributable to the
stockholders of any particular Class shall be distributed among such
stockholders in proportion to the number of Shares of that Class held by
them and recorded on the books of the Corporation.
(v) Voting. On each matter submitted to vote of the stockholders, each
holder of a Share shall be entitled to one vote for each such Share
standing in his name on the books of the Corporation irrespective of the
Class thereof and all Shares of all Classes shall vote as a single class
("Single Class Voting"); provided, however, that (A) as to any matter with
respect to which a separate vote by that Class shall apply in lieu of
Single Class Voting as described above; (B) in the event that the separate
vote requirements referred to in (A) above apply with respect to one or
more Classes, then, subject to (C) below, the Shares of all other Classes
shall vote as a single class; and (C) as to any matter which does not
affect the interest of a particular Class, only the holders of Shares of
the one or more affected Classes shall be entitled to vote.
(vi) Equality. All Shares of each particular Class shall represent an
equal proportionate interest in the assets belonging to that Class (subject
to the liabilities belonging to that Class), and each Share of any
particular Class shall be equal to each other Share of that Class; but the
provisions of this sentence shall not restrict any distinctions permissible
under these Articles of Incorporation that may exist with respect to
stockholder elections to receive dividends or distributions in cash or
Shares of the same Class or that may otherwise exist with respect to
dividends and distributions on Shares of the same Class.
C. No holder of shares shall be entitled as such, as a matter of right, to
purchase or subscribe for any part of any new or additional issue of shares or
securities of the Corporation.
All Shares now or hereafter authorized, and of any Class, shall be "subject
to redemption" and "redeemable", in the sense used in the General Laws of the
State of Maryland authorizing the formation of corporations, at the redemption
or repurchase price for shares of that Class, determined in the manner set out
in these Articles of Incorporation or in any amendment thereto.
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<PAGE>
In the absence of any contrary specification as to the purpose for which Shares
are repurchased by it, all Shares so repurchased shall be deemed to be "acquired
for retirement" in the sense contemplated by the laws of the State of Maryland.
Shares retired by repurchase or retired by redemption shall thereafter have the
status of authorized by unissued Shares of the Corporation.
All persons who shall acquire Shares shall acquire the same subject to the
provisions of these Articles of Incorporation.
D. The terms of the common stock of each Series of the Corporation as
further set by the Board of Directors are as follows:
(1) The common stock of the each Series shall have two sub-classes of
shares, which shall be designated Class A and Class D. The number of
authorized shares of Class A common stock and Class D common stock of each
Series shall each consist of, until further changed, the sum of x and y
where: x equals the issued and outstanding shares of such sub-class; and y
equals one-half of the authorized but unissued shares of common stock of
all sub-classes of the each Series; provided that at all times the
aggregate authorized, issued and outstanding shares of Class A and Class D
common stock of each Series shall not exceed the authorized number of
shares of common stock of the each Series (i.e., 100,000,000 shares of
common stock until changed by further action of the Board of Directors in
accordance with Section 2-208.1 of the Maryland General Corporation Law);
and, in the event application of the formula above would result, at any
time, in fractional shares, the applicable number of authorized shares of
the Series' sub-class shall be rounded down to the nearest whole number of
shares of such sub-class. Any sub-class of common stock of a Series shall
be referred to herein individually as a "Class" and collectively, together
with any further sub-class or sub-classes from time to time established, as
the "Classes."
(2) All Classes shall represent the same interest in the Corporation
and have identical voting, dividend, liquidation, and other rights;
provided, however, that notwithstanding anything in the charter of the
Corporation to the contrary:
(a) Class A shares may be subject to such front-end sales loads
as may be established by the Board of Directors from time to time in
accordance with the Investment Company Act of 1940, as amended (the
"Investment Company Act") and applicable rules and regulations of the
National Association of Securities Dealers, Inc. (the "NASD").
(b) Class D shares may be subject to such contingent deferred
sales charges as may be established from time to time by the Board of
Directors in accordance with the Investment Company Act and applicable
rules and regulations of the NASD.
(c) Expenses related solely to a particular Class of a Series
(including, without limitation, distribution expenses under a Rule
12b-1 plan and
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<PAGE>
administrative expenses under an administration or service agreement,
plan or other arrangement, however designated, which may differ
between the Classes) shall be borne by that Class of a Series and
shall be appropriately reflected (in the manner determined by the
Board of Directors) in the net asset value, dividends, distribution
and liquidation rights of the shares of that Class.
(d) At such time as shall be permitted under the Investment
Company Act, any applicable rules and regulations thereunder and the
provisions of any exemptive order applicable to the Corporation, and
as may be determined by the Board of Directors and disclosed in the
then current prospectus of a Series, shares of a particular Class of a
Series may be automatically converted into shares of another Class of
a Series; provided, however, that such conversion shall be subject to
the continuing availability of an opinion of counsel to the effect
that such conversion does not constitute a taxable event under federal
income tax law. The Board of Directors, in its sole discretion, may
suspend any conversion rights if such opinion is no longer available.
(e) As to any matter with respect to which a separate vote of any
Class of a Series is required by the Investment Company Act or by the
Maryland General Corporation Law (including, without limitation,
approval of any plan, agreement or other arrangement referred to in
subsection (c) above), such requirement as to a separate vote by that
Class of a Series shall apply in lieu of single class voting, and, if
permitted by the Investment Company Act or any rules, regulations or
orders thereunder and the Maryland General Corporation Law, the
Classes shall vote together as a single Class on any such matter that
shall have the same effect on each such Class. As to any matter that
does not affect the interest of a particular Class, only the holders
of shares of the affected Class shall be entitled to vote.
SIXTH: Directors. The Corporation has ten directors in office, and the
names of the ten directors in office are as follows:
Lane W. Adams Douglas R. Nichols, Jr.
Fred E. Brown Robert G. Olmsted
Stanley R. Currie James C. Pitney
William McBride Love Ronald T. Schroeder
John E. Merow Robert L. Shafer
Betsy S. Michel
The number of directors in office may be changed from time to time in such
lawful manner as the By-Laws of the Corporation shall provide.
SEVENTH: Provisions for Defining, Limiting and Regulating the Powers of the
Corporation, Directors and Stockholders.
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<PAGE>
A. Board of Directors: The Board of Directors shall have the general
management and control of the business and property of the Corporation, and may
exercise all the powers of the Corporation, and may exercise all the powers of
the Corporation, except such as are by statute or by these Articles of
Incorporation or by the By-Laws conferred upon or reserved to the stockholders.
In furtherance and not in limitation of the powers conferred by statute, the
Board of Directors is hereby empowered:
1. To authorize the issuance and sale, from time to time, of Shares of
any Class whether for cash at not less than the par value thereof or for
such other consideration as the Board of Directors may deem advisable, in
the manner and to the extent now or hereafter permitted by the laws of
Maryland; provided, however, the consideration (or the value thereof as
determined by the Board of Directors) per share to be received by the
Corporation upon the sale of shares of any Class (including treasury
Shares) shall not be less than the net asset value (determined as provided
in Article NINTH hereof) per Share of that Class outstanding at the time
(determined by the Board of Directors) as of which the computation of such
net asset value shall be made.
2. To authorize the execution and performance by the Corporation of an
agreement or agreements, which may be exclusive contracts, with J. & W.
Seligman & Co. Marketing, Inc., a Delaware corporation, or any other
person, as distributor, providing for the distribution of Shares of any
Class.
3. To specify, in instances in which it may be desirable, that Shares
of any Class repurchased by the Corporation are not acquired for retirement
and to specify the purposes for which such Shares are repurchased.
4. To authorize the execution and performance by the Corporation of an
agreement or agreements with J. & W. Seligman & Co. Incorporated, a
Delaware corporation, or any successor to the corporation ("Seligman")
providing for the investment and other operations of the Corporation.
The Corporation may in its By-Laws confer powers on the Board of Directors
in addition to the powers expressly conferred by statute.
B. Quorum; Adjournment; Majority Vote: The presence in person or by proxy
of the holders of one-third of the Shares of all Classes issued and outstanding
and entitled to vote thereat shall constitute a quorum for the transaction of
any business at all meetings of the shareholders except as otherwise provided by
law or in these Articles of Incorporation and except that where the holders of
Shares of any Class are entitled to a separate vote as a Class (a "Separate
Class") or where the holders of Shares of two or more (but not all) Classes are
required to vote as a single Class (a "Combined Class"), the presence in person
or by proxy of the holders of one-third of the Shares of that Separate Class or
Combined Class, as the case may be, issued
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<PAGE>
and outstanding and entitled to vote thereat shall constitute a quorum for such
vote. If, however, a quorum with respect to all Classes, a Separate Class or a
Combined Class, as the case may be, shall not be present or represented at any
meeting of the shareholders, the holders of a majority of the Shares of all
Classes, such Separate Class or such Combined Class, as the case may be, present
in person or by proxy and entitled to vote shall have power to adjourn the
meeting from time to time as to all Classes, such Separate Class or such
Combined Class, as the case may be, without notice other than announcement at
the meeting, until the requisite number of Shares entitled to vote at such
meeting shall be present. At such adjourned meeting at which the requisite
number of Shares entitled to vote thereat shall be represented any business may
be transacted which might have been transacted at the meeting as originally
notified. The absence from any meeting of stockholders of the number of Shares
in excess of one-third of the Shares of all Classes or of the affected Class or
Classes, as the case may be, which may be required by the laws of the State of
Maryland, the Investment Company Act of 1940 or any other applicable law, these
Articles of Incorporation, for action upon any given matter shall not prevent
action of such meeting upon any other matter or matters which may properly come
before the meeting, if there shall be present thereat, in person or by proxy,
holders of the number of Shares required for action in respect of such other
matter or matters. Notwithstanding any provision of law requiring any action to
be taken or authorized by the holders of a greater proportion than a majority of
the Shares of all Classes or of the Shares of a particular Class or Classes, as
the case may be, entitled to vote thereon, such action shall be valid and
effective if taken or authorized by the affirmative vote of the holders of a
majority of the Shares of all Classes or of such Class or Classes, as the case
may be, outstanding and entitled to vote thereon.
EIGHTH: Redemptions and Repurchases.
A. The Corporation shall under some circumstances redeem, and may under
other circumstances redeem or repurchase, Shares as follows:
1. Obligation of the Corporation to Redeem Shares. Each holder of
Shares of any Class shall be entitled at his option to require the
Corporation to redeem all or any part of the Shares of that Class owned by
such holder, upon written or telegraphic request to the Corporation or its
designated agent, accompanied by surrender of the certificate or
certificates for such shares, or such other evidence of ownership as shall
be specified by the Board of Directors, for the proportionate interest per
Share in the assets of the Corporation belonging to that Class, or the cash
equivalent thereof (being the net asset value per Share of that Class
determined as provided in Article NINTH hereof, less the amount of any
applicable contingent deferred sales load payable on such redemption),
subject to and in accordance with the provisions of paragraph B of this
Article.
2. Right of the Corporation to Redeem Shares. In addition the Board of
Directors may, from time to time in its discretion, authorize the
Corporation to require the redemption of all or any part of the outstanding
Shares of any Class,
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<PAGE>
for the proportionate interest per Share in the assets of the Corporation
belonging to that Class, or the cash equivalent thereof (being the net
asset value per Share of that Class determined as provided in Article NINTH
hereof), subject to and in accordance with the provisions of paragraph B of
this Article, upon the sending of written notice thereof to each
stockholder any of whose Shares are so redeemed and upon such terms and
conditions as the Board of Directors shall deem advisable.
3. Right of the Corporation to Repurchase Shares. In addition the
Board of Directors may, from time to time in its discretion, authorize the
officers of the Corporation to repurchase Shares of any Class, either
directly or through an agent, subject to and in accordance with the
provision of paragraph B of this Article. The price to be paid by the
Corporation upon any such repurchase shall be determined, in the discretion
of the Board of Directors, in accordance with any provision of the
Investment Company Act of 1940 or any rule or regulation made or adopted
pursuant to Section 22 of the Investment Company Act of 1940 by the
Securities and Exchange Commission or any securities association registered
under the Securities Exchange Act of 1934.
B. The following provisions shall be applicable with respect to redemptions
and repurchases of Shares of any Class pursuant to paragraph A hereof:
1. The time as of which the net asset value per Share of a particular
Class applicable to any redemption pursuant to subparagraph A(1) or A(2) of
this Article shall be computed shall be such time as may be determined by
or pursuant to the direction of the Board of Directors (which time may
differ from Class to Class).
2. Certificates for Shares of any Class to be redeemed or repurchased
shall be surrendered in proper form for transfer, together with such proof
of the authenticity of signatures as may be required by resolution of the
Board of Directors.
3. Payment of the redemption or repurchase price by the Corporation or
its designated agent shall be made in cash within seven days after the time
used for determination of the redemption or repurchase price, but in no
event prior to delivery to the Corporation or its designated agent of the
certificate or certificates for the Shares of the particular Class so
redeemed or repurchased, or of such other evidence of ownership as shall be
specified by the Board of Directors; except that any payment may be made in
whole or in part in securities or other assets of the Corporation belonging
to that Class if, in the event of the closing of the New York Stock
Exchange or the happening of any event at any time prior to actual payment
which makes the liquidation of Securities in orderly fashion impractical or
impossible, the Board of Directors shall determine that payment in cash
would be
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<PAGE>
prejudicial to the best interests of the remaining stockholders of that
Class. In making any such payment in whole or in part in Securities or
other assets of the Corporation belong to that Class, the Corporation
shall, as nearly as may be practicable, deliver Securities or other assets
of a gross value (determined in the manner provided in Article NINTH
hereof) representing the same proportionate interest in the Securities and
other assets of the Corporation belonging to that Class as is represented
by the Shares of that Class so to be paid for. Delivery of the Securities
included in any such payment shall be made as promptly as any necessary
transfers on the books of the several corporations whose Securities are to
be delivered may be made.
4. The right of the holder of Shares of any Class redeemed or
repurchased by the Corporation as provided in this Article to receive
dividends thereon and all other rights of such holder with respect to such
Shares shall forthwith cease and terminate from and after the time as of
which the redemption or repurchase price of such Shares has been determined
(except the right of such holder to receive (a) the redemption or
repurchase price of such Shares form the Corporation or its designated
agent, in cash and/or in securities or other assets of the Corporation
belonging to that Class, and (b) any dividend to which such holder had
previously become entitled as the record holder of such Shares on the
record date for such dividend, and, with respect to Shares otherwise
entitled to vote, except the right of such holder to vote at a meeting of
stockholders such Shares owned of record by him on the record date for such
meeting).
NINTH: Determination of Net Asset Value. For the purposes referred to in
Articles SEVENTH and EIGHTH hereof the net asset value per Share of any Class
shall be determined by or pursuant to the direction of the Board of Directors in
accordance with the following provisions:
A. Such net asset value per Share of a particular Class on any day shall be
computed as follows:
The net asset value per Share of that Class shall be the quotient
obtained by dividing the "net value of the assets" of the Corporation
belonging to that Class by the total number of Shares of that Class at the
time deemed to be outstanding (including Shares sold whether paid for and
issued or not, and excluding Shares redeemed or repurchased on the basis of
previously determined values, whether paid for, received and held in
treasury, or not).
The "net value of the assets" of the Corporation belonging to a
particular Class shall be the "gross value" of the assets belonging to that
Class after deducting the amount of all expenses incurred and accrued and
unpaid belonging to that Class, such reserves belonging to that Class as
may be set up to cover taxes and any other liabilities, and such other
deductions belonging to that Class as in
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<PAGE>
the opinion of the officers of the Corporation are in accordance with
accepted accounting practice.
The "gross value" of the assets belonging to a particular Class shall
be the amount of all cash and receivables and the market value of all
Securities and other assets held by the Corporation and belonging to that
Class at the time as of which the determination is made. Securities held
shall be valued at market value or, in the absence of readily available
market quotations, at fair value, both as determined pursuant to methods
approved by the Board of Directors and in accordance with applicable
statutes and regulations.
B. The Board of Directors is empowered, in its absolute discretion, to
establish other methods for determining such net asset value whenever such other
methods are deemed by it to be necessary or desirable and are consistent with
the provisions of the Investment Company Act of 1940 and the rules and
regulations thereunder.
TENTH: Determination Binding. Any determination made by or pursuant to the
direction of the Board of Directors in good faith, and so far as accounting
matters are involved in accordance with accepted accounting practice, as to the
amount of the assets, obligations or liabilities of the Corporation belonging to
any Class, as to the amount of the net income of the Corporation belonging to
any Class for any period or amounts that are any time legally available for the
payment of dividends of shares of any Class, as to the amount of any reserves or
charges set up with respect to any Class and the propriety thereof, as to the
time of or purpose for creating any reserves or charges with respect to any
Class, as to the use, alteration or cancellation of any reserves or charges with
respect to any Class (whether or not any obligation or liability for which such
reserves or charges shall have been created shall have been paid or discharged
or shall be then or thereafter required to be paid or discharged), as to the
price or closing bid or asked price of any security owned or held by the
Corporation and belonging to any Class, as to the market value of any security
or fair value of any other asset owned by the Corporation and belonging to any
Class, as to the number of Shares of any Class outstanding or deemed to be
outstanding, as to the impracticability or impossibility of liquidating
Securities in orderly fashion, as to the extent to which it is impracticable to
deliver the proportionate interest in the Securities and other assets of the
Corporation belonging to any Class represented by any Shares belonging to any
Class redeemed or repurchased in payment for any such Shares, as to the method
of payment for any such Shares redeemed or repurchased, or as to any other
matters relating to the issue, sale, redemption, repurchase, and/or other
acquisition or disposition of Securities or Shares of the Corporation shall be
final and conclusive and shall be binding upon the Corporation and all holders
of Shares of all Classes past, present and future, and shares of all Classes are
issued and sold on the condition and understanding that any and all such
determinations shall be binding as aforesaid. No provision of these Articles of
Incorporation shall be effective to (a) bind any person to waive compliance with
any provision of the Securities Act of 1933 or the Investment Company Act of
1940 or of any valid rule, regulation or order of the Securities and Exchange
Commission thereunder, or (b) protect or purport to protect any director or
officer of the Corporation against any liability to the Corporation or its
security
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<PAGE>
holders to which he would otherwise be subject by reason of willful misfeasance,
bad faith, gross negligence or reckless disregard of the duties involved in the
conduct of his office.
ELEVENTH: Amendments. The Corporation reserves the right to take any lawful
action and to make any amendment of these Articles of Incorporation, including
the right to make any amendment which changes the terms of any Shares of any
Class now or hereafter authorized by classification, reclassification, or
otherwise, and to make any amendment authorizing any sale, lease, exchange or
transfer of the property and assets of the Corporation or belonging to any Class
or Classes as an entirety, or substantially as an entirety, with or without its
good will and franchise, if a majority of all the Shares of all Classes or of
the affected Class or Classes, as the case may be, at the time issued and
outstanding and entitled to vote, vote in favor of any such action or amendment,
or consent thereto in writing, and reserves the right to make any amendment of
these Articles of Incorporation in any form, manner or substance now or
hereafter authorized or permitted by law.
TWELFTH: Liability. A director or officer of the Corporation shall not be
liable to the Corporation or its shareholders for monetary damages for breach of
fiduciary duty as a Director or Officer, except to the extent such exemption
from liability or limitation thereof is not permitted by law (including the
Investment Company Act of 1940 as currently in effect or as the same may
hereafter be amended). No amendment, modification or repeal of this Article
Twelfth shall adversely affect any right or protection of a Director or Officer
that exists at the time of such amendment, modification or repeal.
THIRTEENTH: Indemnification of Directors, Officers and Employees. The
Corporation shall indemnify to the fullest extent permitted by law (including
the Investment Company Act of 1940 as currently in effect or as the same may
hereafter be amended) any person made or threatened to be made a party to any
action, suit or proceeding, whether criminal, civil, administrative or
investigative, by reason of the fact that such person or such person's testator
or intestate is or was a Director, Officer or employee of the Corporation or
serves or served at the request of the Corporation any other enterprise as a
Director, Officer or employee. To the fullest extent permitted by law (including
the Investment Company Act of 1940 as currently in effect or as the same may
hereafter be amended), expenses incurred by any such person in defending any
such action, suit or proceeding shall be paid or reimbursed by the Corporation
promptly upon receipt by it of an undertaking of such person to repay such
expenses if it shall ultimately be determined that such person is not entitled
to be indemnified by the Corporation. The rights provided to any person by this
Article shall be enforceable against the Corporation by such person who shall be
presumed to have relied upon it in serving or continuing to serve as a Director,
Officer or employee as provided above. No amendment of this Article Thirteenth
shall impair the rights of any person arising at any time with respect to events
occurring prior to such amendment. For purposes of this Article Thirteenth, the
term "Corporation" shall include any predecessor of the Corporation and any
constituent corporation (including any constituent of a constituent) absorbed by
the Corporation in a consolidation or merger; the term "other enterprise" shall
include any corporation, partnership, joint venture, trust
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<PAGE>
or employee benefit plan; service "at the request of the Corporation" shall
include service as a Director, Officer or employee of the Corporation which
imposes duties on, or involves services by, such Director, Officer or employee
with respect to an employee benefit plan, its participants or beneficiaries; any
excise taxes assessed on a person with respect to an employee benefit plan shall
be deemed to be indemnifiable expenses; and action by a person with respect to
any employee benefit plan which such person reasonably believes to be in the
interest of the participants and beneficiaries of such plan shall be deemed to
be action not opposed to the best interests of the Corporation.
I acknowledge this document to be my act, and state under penalties of
perjury that with respect to all matters and facts therein, to the best of my
knowledge, information and belief such matters and facts are true in all
material respects.
DATE: August 5, 1983 /s/ John T. Bostelman
-------------------------------
John T. Bostelman
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AMENDED AND RESTATED
BY-LAWS
of
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
<PAGE>
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
By-Laws
ARTICLE I
Shareholders' Meetings.
SECTION 1. Place of Holding Meetings. Each meeting of shareholders shall be
held at the office of the Corporation in the City of Baltimore, Maryland, or at
such other place within the United States as may be fixed by the Board of
Directors.
SECTION 2. Annual Meetings. The annual meeting of the shareholders of the
Corporation shall be held during the 31-day period commencing April 15 of each
year on such day and at such hour as may from time to time be designated by the
Board of Directors and stated in the notice of such meeting, for the transaction
of such business as may properly be brought before the meeting; provided,
however, that an annual meeting of shareholders shall not be required to be held
in any year in which none of the following is required to be acted on by
shareholders pursuant to the Investment Company Act of 1940: election of
directors; approval of the investment advisory agreement; ratification of the
selection of independent public accountants and approval of a distribution
agreement.
SECTION 3. Special Meetings. Special meetings of the shareholders for any
purpose or purposes may be called by the Chairman of the Board, the President, a
majority of the Board of Directors or a majority of the Executive Committee and
shall be called by the Secretary upon the written request of the holders of
shares entitled to not less than twenty-five percent of all the votes entitled
to be cast at such meeting. Such request shall state the purpose or purposes of
such meeting and the matters proposed to be acted on thereat. The Secretary
shall inform such shareholders of the reasonably estimated cost of preparing and
mailing such notice of meeting, and upon payment to the Corporation of such
costs the Secretary shall give notice stating the purpose or purposes of the
meeting, as required in this Article and by law, to all shareholders entitled to
notice of such meeting. No special meeting need be called upon the request of
the holders of shares entitled to cast less than a majority of all votes
entitled to be cast at such meeting, to consider any matter which is
substantially the same as a matter voted upon at any special meeting of
shareholders held during the preceding twelve months.
SECTION 4. Notice of Shareholders' Meetings. Not less than ten days nor
more than ninety days before the date of every shareholders' meeting, the
Secretary shall give to each shareholder entitled to vote at or to notice of
such meeting, written or printed notice stating the time and place of the
meeting and, in the case of a special meeting, the purpose or purposes for which
the meeting is called, either by mail or presenting it to him personally or by
leaving it at his residence or usual place of business. If mailed, such notice
shall be deemed to be given when deposited in the United States mail addressed
to the shareholder at his post office address as it appears on the records of
the Corporation, with postage thereon prepaid.
<PAGE>
SECTION 5. Quorum; Adjournment; Majority Vote. The presence in person or by
proxy of the holders of one-third of the Shares of all Classes issued and
outstanding and entitled to vote thereat shall constitute a quorum for the
transaction of any business at all meetings of the shareholders except as
otherwise provided by law or in the Articles of Incorporation and except that
where the holders of Shares of any Class are entitled to a separate vote as a
Class (a "Separate Class") or where the holders of Shares of two or more (but
not all) Classes are required to vote as a single Class (a "Combined Class"),
the presence in person or by proxy of the holders of one-third of the Shares of
that Separate Class or Combined Class, as the case may be, issued and
outstanding and entitled to vote thereat shall constitute a quorum for such
vote. If, however, a quorum with respect to all Classes, a Separate Class or a
Combined Class, as the case may be, shall not be present or represented at any
meeting of the shareholders, the holders of a majority of the Shares of all
Classes, such Separate Class or such Combined Class, as the case may be, present
in person or by proxy and entitled to vote shall have power to adjourn the
meeting from time to time as to all Classes, such Separate Class or such
Combined Class, as the case may be, without notice other than announcement at
the meeting, until the requisite number of Shares entitled to vote at such
meeting shall be present. At such adjourned meeting at which the requisite
number of Shares entitled to vote thereat shall be represented any business may
be transacted which might have been transacted at the meeting as originally
notified. The absence from any meeting of stockholders of the number of Shares
in excess of one-third of the Shares of all Classes or of the affected Class or
Classes, as the case may be, which may be required by the laws of the State of
Maryland, the Investment Company Act of 1940 or any other applicable law, the
Articles of Incorporation, for action upon any given matter shall not prevent
action of such meeting upon any other matter or matters which may properly come
before the meeting, if there shall be present thereat, in person or by proxy,
holders of the number of Shares required for action in respect of such other
matter or matters.
SECTION 6. Voting. All elections shall be had and all questions decided by
a majority of the votes cast, without regard to Class, at a duly constituted
meeting, except as otherwise provided by law or by the Articles of Incorporation
or by these By-Laws and except that with respect to a question as to which the
holders of Shares of any Class or Classes are entitled or required to vote as a
Separate Class or a Combined Class, as the case may be, such question shall be
decided as to such Separate Class or such Combined Class, as the case may be, by
a majority of the votes cast by Shares of such Separate Class or such Combined
Class, as the case may be.
With respect to all Shares having voting rights (a) a shareholder may vote
the Shares owned of record by him either in person or by proxy executed in
writing by the shareholder or by his duly authorized attorney-in-fact, provided
that no proxy shall be valid after eleven months from its date unless otherwise
provided in the proxy, and (b) in all elections for directors every shareholder
shall have the right to vote, in person or by proxy, the Shares owned of record
by him, for as many persons as there are directors to be elected and for whose
election he has a right to vote.
SECTION 7. Conduct of Shareholders' Meetings. Each meeting of shareholders
shall be presided over by the Chairman of the Board, or if he is not present, by
the President or a Vice-President of the Corporation designated by the Chairman
of the Board to act as chairman of the meeting, or if none of the foregoing is
present, by a chairman to be elected at the meeting. The Secretary of the
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Corporation, or if he is not present, an Assistant Secretary, or if neither is
present, a secretary to be named at the meeting, shall act as secretary of the
meeting.
ARTICLE II
Board of Directors
SECTION 1. Number; Term. The business and affairs of the Corporation shall
be managed under the direction of a Board of ten members, but from time to time
such number may be increased to not more than twenty or decreased to not less
than three, by vote of a majority of the entire Board of Directors, provided
that the tenure of office of a director shall not be affected by any decrease in
the number of directors so made by the Board.
At each annual meeting of shareholders the shareholders shall elect
directors to hold office until the next annual meeting or until their successors
are elected and qualify, subject to the right of removal granted by law.
Directors need not be shareholders.
SECTION 2. Vacancies. Subject to Section 5 of this Article II, any vacancy
occurring in the Board of Directors for any cause other than by reason of an
increase in the number of directors may be filled by the vote of a majority of
the remaining directors, although such majority is less than a quorum. Any
vacancy occurring by reason of an increase in the number of directors may be
filled by action of a majority of the entire Board of Directors. A director
elected by the Board of Directors to fill a vacancy shall be elected to hold
office until the next annual meeting of shareholders or until his successor is
elected and qualifies.
SECTION 3. Meetings. Meetings of the Board of Directors, regular or
special, may be held at any place in or out of the State of Maryland as the
Board may from time to time determine or as shall be specified or filed in the
respective notices or waivers of notice thereof.
Regular meetings of the Board shall be held at such time as the Board may
from time to time determine. No notice need be given of regular meetings of the
Board.
Special meetings of the Board may be held at any time upon call of the
Chairman of the Board, at the request of the Executive Committee or of a
majority of the directors, by the Secretary, by oral, telegraphic or written
notice duly served on or sent or mailed to each director not less than two days
before such meeting. Such notice need not include a statement of the business to
be transacted at, or the purpose of, such special meeting. A written waiver of
notice, signed by the director entitled to such notice and filed with the
records of the meeting, whether before or after the holding thereof, or actual
attendance at the meeting, shall be deemed equivalent to the giving of notice to
such director.
At all meetings of the Board, a majority of the entire Board, but not less
than two directors, shall constitute a quorum for the transaction of business.
If there be less than a quorum
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present at any meeting of the Board, a majority of those present may adjourn the
meeting from time to time.
The action of a majority of the directors present at a meeting at which a
quorum is present shall be the action of the Board unless the concurrence of a
greater proportion is required for such action by statute, the Articles of
Incorporation or these By-Laws.
SECTION 4. Audit Committee. The Board of Directors may by the affirmative
vote of a majority of the entire Board appoint from its members an Audit
Committee composed of two or more directors, who are not "interested persons"
(as defined in the Investment Company Act of 1940) of the Corporation, as the
Board may from time to time determine. The Audit Committee shall (a) recommend
independent public accountants for selection by the Board, (b) review the scope
of audit, accounting and financial internal controls and the quality and
adequacy of the Corporation's accounting staff with the independent public
accountants and such other persons as may be deemed appropriate, (c) review with
the accounting staff and the independent public accountants the compliance of
transactions of the Corporation with J. & W. Seligman & Co. Incorporated or any
other manager of the affairs of the Corporation and with any affiliate of such
firm or manager with the financial terms of applicable agreements, (d) review
reports of the independent public accounts and comment to the Board when
warranted, (e) report to the Board at least once each year and at such other
times as the committee deems desirable, and (f) be directly available at all
times to the independent public accountants and responsible officers of the
Corporation for consultation on audit, accounting and related financial matters.
SECTION 5. Nominating Committee of Directors. The Board of Directors may by
the affirmative vote of a majority of the entire Board appoint from its members
a Director Nominating Committee composed of two or more directors. The Director
Nominating Committee shall recommend to the Board a slate of persons to be
nominated for election as directors by the shareholders at each annual meeting
of shareholders and a person to be elected to fill any vacancy occurring for any
reason in the Board.
SECTION 6. Portfolio Transactions Committee. The Board of Directors may by
the affirmative vote of a majority of the entire Board appoint from its members
a Portfolio Transactions Committee composed of two or more directors who are not
"interested persons" of the Corporation as the Board may from time to time
determine. The Portfolio Transactions Committee shall maintain familiarity with,
report to the Board concerning, and make such recommendations to the Board as it
may deem appropriate with respect to, the procedures and practices followed in
the handling of orders to buy and sell portfolio securities for the Corporation
and the commissions or other compensation paid in respect of portfolio
transactions.
SECTION 7. Executive Committee. The Board of Directors may appoint from its
members an Executive Committee composed of those directors, as the Board may
from time to time determine, of which committee the Chairman of the Board shall
be a member. In the intervals between meetings of the Board, the Executive
Committee shall have the power of the Board to (a) determine the value of
securities and assets owned by the Corporation, (b) elect or
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appoint officers of the Corporation to serve until the next meeting of the
Board, and (c) take such action as may be necessary to manage the portfolio
security loan business of the Corporation.
All action by the Executive Committee shall be recorded and reported to
the Board at its meeting next succeeding such action.
SECTION 8. Other Committees. The Board of Directors may appoint from among
its members other committees composed of two or more of its directors which
shall have such powers as may be delegated or authorized by the resolution
appointing them.
SECTION 9. Committee Procedures. The Board of Directors may at any time
change the members of any committee, fill vacancies or discharge any committee.
In the absence of any member of any committee, the member or members
thereof present at any meeting, whether or not they constitute a quorum, may
appoint to act in the place of such absent member a member of the Board who,
except in the case of the Executive Committee, is not an "interested person" of
the Corporation.
Each committee may fix its own rules of procedure and may meet as and when
provided by those rules.
Two or more members of any committee, shall constitute a quorum unless the
Board shall otherwise provide.
Copies of the minutes of all meetings of committees other than the
Nominating Committee and the Executive Committee shall be distributed to the
Board unless the Board shall otherwise provide.
SECTION 10. Telephone Meetings. Members of the Board of Directors or a
committee of the Board of Directors may participate in a meeting by means of a
conference telephone or similar communications equipment if all persons
participating in the meeting can hear each other at the same time. Participation
in a meeting by these means constitutes presence in person at the meeting.
SECTION 11. Action Without a Meeting. Any action required or permitted to
be taken at any meeting of the Board of Directors or of any committee thereof
may be taken without a meeting if a written consent to such action is signed by
all members of the Board or of such committee, as the case may be, and such
written consent is filed with the minutes of proceedings of the board or
committee.
SECTION 12. Compensation of Directors. The Board of Directors shall have
the authority to fix the compensation of directors for services in any capacity.
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ARTICLE III
Officers
SECTION 1. Officers. The executive officers of the Corporation shall be
elected by the Board of Directors and shall be a Chairman of the Board, who
shall be the chief executive officer of the Corporation, a President, one or
more Vice-Presidents, a Secretary and a Treasurer. The Chairman of the Board
shall be selected from among the directors. The Board may also appoint such
other officers, employees and agents as it may deem appropriate. Any two or more
offices, except those of President and Vice-President, may be held by the same
person but no person shall execute, acknowledge or verify any instrument in more
than one capacity, if such instrument is required by law, the Articles of
Incorporation or these By-Laws to be executed, acknowledged or verified by two
or more officers.
SECTION 2. Term. Officers shall serve for one year and until their
successors are elected and shall qualify, but any officer may be removed (except
as a director) by action of a majority of the entire Board of Directors
whenever, in the judgment of the Board, the best interests of the Corporation
will be served thereby, but such removal shall be without prejudice to the
contractual rights, if any, of the person so removed.
SECTION 3. Authority and Duties. All officers and agents of the Corporation
shall have such authority and perform such duties in the management of the
property and affairs of the Corporation as generally pertain to their respective
offices, as well as such authority and duties as may be determined by resolution
of the Board of Directors.
Without limiting the generality of the foregoing and subject to the
provisions of the Articles of Incorporation of the Corporation and to the order
of the Board of Directors, the Treasurer shall be the chief financial and
accounting officer of the Corporation and as such shall receive, or cause to be
received, and give, or cause to be given, receipts for all funds and securities
paid or delivered to, or for the account of the Corporation; shall cause such
funds and securities to be deposited for the account of the Corporation with
such custodians as may be designated by the Board of Directors; shall pay or
cause to be paid out of the funds of the Corporation all just debts of the
Corporation upon their maturity; shall maintain, or cause to be maintained,
accurate records of all receipts, disbursements, assets, liabilities and
transactions of the Corporation; shall see that adequate audits thereof are
regularly made; and shall, when required by the Board of Directors, render
accurate statements of the condition of the Corporation.
SECTION 4. Compensation of Officers. The Board of Directors may determine
what, if any, compensation shall be paid to officers of the Corporation.
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ARTICLES IV
Indemnification
The Corporation shall indemnify directors, officers, employees and
agents of the Corporation against judgments, fines, settlements, penalties and
expenses to the fullest extent authorized, and in the manner permitted by
applicable federal and state law.
ARTICLE V
Capital Stock
SECTION 1. Certificates of Stock. Each shareholder of a particular Class
shall be entitled to a certificate or certificates which shall represent and
certify the number of whole Shares of that Class of Stock owned by him in the
Corporation. Each certificate shall be signed by the Chairman of the Board,
President or a Vice-President and countersigned by the Secretary or an Assistant
Secretary or the Treasurer or an Assistant Treasurer and shall be sealed with
the corporate seal. The signatures may be either manual or facsimile signatures
and the seal may be either facsimile or any other form of seal. In case any
officer who has signed any certificate ceases to be an officer of the
Corporation before the certificate is issued, the certificate may nevertheless
be issued by the Corporation with the same effect as if the officer had not
ceased to be such officer as of the date of its issue.
SECTION 2. Lost Certificates. The Board of Directors may determine the
conditions upon which a new certificate of Shares may be issued in place of a
certificate which is alleged to have been lost, destroyed or stolen. It may, in
its discretion, require the owner of such certificate to give bond, with
sufficient surety, to the Corporation to indemnify it against any loss or claim
which may arise by reason of the issuance of a new certificate.
SECTION 3. Record Dates; Closing of Transfer Books. The Board of Directors
may fix, in advance, a date as the record date for the purpose of determining
shareholders of any Class entitled to notice of, or to vote at, any meeting of
shareholders of any Class or shareholders entitled to receive payment of any
dividend or the allotment of any rights to that Class or in order to make a
determination of shareholders of any Class for any other proper purpose. Such
date in any case shall be not more than ninety days, and in the case of a
meeting of shareholders, not less than ten days, prior to the date of the action
that requires such determination.
SECTION 4. Stock Ledger. An original or duplicate stock ledger containing
the names and addresses of all shareholders and the number of Shares of each
Class held by each shareholder, shall be kept by the Secretary at the office of
the Corporation in The City of New York, or in Jersey City, New Jersey, or at
such other office or agency of the Corporation in The City of New York and
Jersey City, as the Board of Directors may from time to time by resolution
determine.
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ARTICLE VI
Checks, Notes, Etc
All checks and drafts on the Corporation's bank accounts and all bills of
exchange and promissory notes, and all acceptances, obligations and other
instruments for the payment of money, shall be signed by such officer or
officers, or agent or agents, as shall be thereunto authorized from time to time
by the Board of Directors.
ARTICLE VII
Books and Records
The books of the Corporation other than the original or duplicate stock
ledger may be kept at such place or places in or out of the State of Maryland as
the Board of Directors may from time to time determine.
ARTICLE VIII
Seal
The Board of Directors shall provide a suitable corporate seal, in such
form and bearing such inscriptions as they may determine.
ARTICLE IX
Fiscal Year
The fiscal year of the Corporation shall be the calendar year, subject,
however, to change from time to time by the Board of Directors.
ARTICLE X
Custodian
All securities and funds of the Corporation shall be held by one or more
custodians each of which shall be a bank or trust company having not less than
$2,500,000 aggregate capital, surplus and undivided profits, as shown by its
last published report, provided any such custodian can be found ready and
willing to act.
The terms of custody of such securities and funds shall include provisions
to the effect that the custodian shall deliver securities owned by the
Corporation only (a) upon sales of such securities for the account of the
Corporation and receipt by the custodian of payment therefor, (b) when such
securities are called, redeemed or retired or otherwise become payable, (c) in
exchange for or upon conversion into other securities alone or other securities
and cash whether
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pursuant to any plan or merger, consolidation, reorganization, recapitalization
or readjustment, or otherwise, (d) upon conversion of such securities pursuant
to their terms into other securities, (e) upon exercise of subscription,
purchase or other similar rights represented by such securities, (f) for the
purpose of exchanging interim receipt or temporary securities for definitive
securities, (g) for the purpose of redeeming in kind Shares of the Corporation,
(h) for loans of securities by the Corporation, or (i) for other proper
corporate purposes.
Such terms of custody shall also include provisions to the effect that the
custodian shall deliver funds of the Corporation only (a) upon the purchase of
securities for the portfolio of the Corporation and the delivery of such
securities to the custodian, (b) for the repurchase or redemption of Shares of
the Corporation, (c) for the payment of dividends, taxes, management or
supervisory fees or operating expenses, (d) for payments in connection with the
conversion, exchange or surrender of securities owned by the Corporation, (e)
for payments in connection with the return of securities loaned by the
Corporation or the reduction of cash collateral, or (f) for other proper
corporate purposes.
Upon the resignation or inability of any such custodian to serve, the
Corporation shall (a) use its best efforts to obtain a successor custodian, (b)
require the funds and securities of the Corporation held by the custodian to be
delivered to the successor custodian, and (c) in the event that no successor
custodian can be found, submit to the shareholders of the Corporation, before
permitting delivery of such funds and securities to anyone other than a
successor custodian, the question whether the Corporation shall be dissolved or
shall function without a custodian; provided, however, that nothing herein
contained shall prevent the termination of any agreement between the Corporation
and any such custodian with respect to any Class of the Corporation's Shares
(and with respect to the assets and liabilities belonging to such Class) by the
affirmative vote of the holders of a majority of the outstanding Shares of such
Class or Classes (voting as a single class) entitled to vote.
Such terms of custody shall further provide that, pending appointment of a
successor custodian or a vote of the shareholders of the affected Class or
Classes to function without a custodian, a custodian shall not deliver funds and
other property of the Corporation to the Corporation, but may deliver them to a
bank or trust company of its own selection having not less than $2,500,000
aggregate capital, surplus, and undivided profits, as shown by its last
published report, as custodian for the Corporation to be held under terms
similar to those under which there were held by the retiring custodian.
Subject to such rules, regulations and orders as the Securities and
Exchange Commission may adopt, the Corporation may authorize or direct a
custodian to deposit all or any part of the securities owned by the Corporation
in a system for the central handling of securities established by a national
securities exchange or a national securities association registered with the
Securities and Exchange Commission under the Securities Exchange Act of 1934, or
such other person as may be permitted by the Commission, pursuant to which
system all securities of any particular class or series of any issuer deposited
within the system are treated as fungible and may be transferred or pledged by
bookkeeping entry without physical delivery of such securities,
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provided that all such deposits shall be subject to withdrawal only upon the
order of the custodian.
The Corporation may also have such transfer agents and registrars of its
Shares as the Board of Directors shall from time to time determine. The Board of
Directors may employ and fix the powers, rights, duties, responsibilities,
privileges, immunities, and compensation of any such custodian, transfer agent,
or registrar, subject, however, in the case of any such custodian, to the
foregoing provisions of this paragraph.
As used herein, the term "receipt by the custodian of payment" shall
include the receipt of (a) a certified or official bank check, (b) an advice
that funds have been or will be credited to the account of the custodian at a
clearing agency registered under the Securities Exchange Act of 1934, or (c) a
bank wire from a correspondent bank of the custodian. As used herein, the term
"delivery of such securities to the custodian" shall include the receipt of (a)
securities in bearer form or in proper form for transfer, or (b) an advice that
securities have been credited to the account of the custodian at a clearing
agency registered under the Securities Exchange Act of 1934, or at the Federal
Reserve Bank of New York.
The Corporation may make such other arrangements for the custody of its
assets (including deposit arrangements) as may be required by any applicable
law, rule or regulation.
ARTICLE XI
Amendments
The Board of Directors is authorized and empowered to make, alter or repeal
the By-Laws of the Corporation, in any manner not inconsistent with the laws of
the State of Maryland or the Articles of Incorporation of the Corporation.
10
$$/(8U$$/(s10h3T MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT, dated as of December 29, l988, between SELIGMAN
TAX-EXEMPT FUND SERIES, INC., a Maryland corporation (the "Corporation"), and J.
& W. SELIGMAN & CO. INCORPORATED, a Delaware corporation (the "Manager").
In consideration of the mutual agreements herein made, the parties hereto
agree as follows:
1. Duties of the Manager. The Manager shall manage the affairs of the
Corporation with respect to each Series as hereinafter defined including, but
not limited to, continuously providing the Corporation with investment
management, including investment research, advice and supervision, determining
which securities shall be purchased or sold by the Corporation, making purchases
and sales of securities on behalf of the Corporation and determining how voting
and other rights with respect to securities of each Series shall be exercised,
subject in each case to the control of the Board of Directors of the Corporation
and in accordance with the objectives, policies and principles set forth in the
Registration Statement and Prospectus as of the Corporation relating to the
Series and the requirements of the Investment Company Act of l940 (the "Act")
and other applicable law. In performing such duties, the Manager shall provide
such office space, such bookkeeping, accounting, internal legal, clerical,
secretarial and administrative services (exclusive of and in addition to, any
such services provided by any others retained by the Corporation) and such
executive and other personnel as shall be necessary for the operations of the
Corporation. The Corporation understands that the Manager also acts as the
manager of the investment companies in the Seligman Group. As used herein a
"Series" means the assets and liabilities of the Corporation attributable to any
of the following classes of its common stock: the National Tax-Exempt Class, the
New York Tax-Exempt Class, the Massachusetts Tax-Exempt Class, Michigan
Tax-Exempt Class, the Minnesota Tax-Exempt Class, the Ohio Tax-Exempt Class and
any other class of the Corporation's Common Stock to which the Corporation and
the Manager agree this Agreement shall apply.
Subject to Section 36 of the Act, the Manager shall not be liable to the
Corporation for any error of judgment or mistake of law or for any loss arising
out of any investment or for any act or omission in the management of the
Corporation and the performance of its duties under this Agreement except for
willful misfeasance, bad faith or gross negligence in the performance of its
duties or by reason of reckless disregard of its obligations and duties under
this Agreement.
2. Expenses. The Manager shall pay all of its expenses arising from the
performance of its obligations under Section l and shall pay any salaries, fees
and expenses of the directors of the Corporaton who are employees of the Manager
or its affiliates. The Manager shall not be required to pay any other expenses
of the Corporation, including, but not limited to, direct charges relating to
the purchase and sale of portfolio securities, interest charges, fees and
expenses of independent attorneys and auditors, taxes and governmental fees,
cost of stock certificates and any other expenses (including clerical expenses)
of issue, sale, repurchase or redemption of
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shares, expenses of registering and qualifying shares for sale, expenses of
printing and distributing reports, notices and proxy materials to shareholders,
expenses of corporate data processing and related services, shareholder
recordkeeping and shareholder account sevices, expenses of printing and filing
reports and other documents filed with governmental agencies, expenses of
printing and distributing prospectuses, expenses of annual and special
shareholders' meetings, fees and disbursements of transfer agents and
custodians, expenses of disbursing dividends and distributions, fees and
expenses of directors of the Corporation who are not employees of the Manager or
its affiliates, membership dues in the Investment Company Institute, insurance
premiums and extraordinary expenses such as litigation expenses.
3. Compensation. (a) As compensation for the services performed and the
facilities and personnel provided by the Manager pursuant to Section l, the
Corporation will pay to the Manager promptly after the end of each month a fee,
calculated on each day during such month, at an annual rate of 0.50% of the
Corporation's average daily net assets attributable to the Series.
(b) If the Manager shall serve hereunder for less than the whole of any
month, the fee hereunder shall be prorated.
4. Purchase and Sale of Securities. The Manager shall purchase securities
from or through and sell securities to or through such persons, brokers or
dealers (including the Manager or an affiliate of the Manager) as the Manager
shall deem appropriate in order to carry out the policy with respect to
allocation of portfolio transactions as set forth in the Registration Statement
and Prospectus(es) of the Corporation relating to the Series or as the Board of
Directors of the Corporation may direct from time to time. In providing the
Corporation with investment management and supervision, it is recognized that
the Manager will seek the most favorable price and execution, and, consistent
with such policy, may give consideration to the research, statistical and other
services furnished by brokers or dealers to the Manager for its use, to the
general attitude of brokers or dealers toward investment companies and their
support of them, and to such other considerations as the Board of Directors of
the Corporation may direct or authorize from time to time.
Notwithstanding the above, it is understood that it is desirable for the
Corporation that the Manager have access to supplemental investment and market
research and security and econonic analysis provided by brokers who execute
brokerage transactions at a higher cost to the Corporation than may result when
allocating brokerage to other brokers on the basis of seeking the most favorable
price and execution. Therefore, the Manager is authorized to place orders for
the purchase and sale of securities for the Series of the Corporaton with such
brokers, subject to review by the Corporation's Board of Directors from time to
time with respect to the extent and continuation of this practice. It is
understood that the services provided by such brokers may be useful to the
Manager in connection with its services to other clients as well as the
Corporation.
The placing of purchase and sale orders may be carried out by the Manager
or any wholly-owned subsidiary of the Manager.
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<PAGE>
If, in connection with purchases and sales of securities for the Series of
the Corporation, the Manager or any subsidiary of the Manager may, without
material risk, arrange to receive a soliciting dealer's fee or other
underwriter's or dealer's discount or commission, the Manager shall, unless
otherwise directed by the Board of Directors of the Corporation, obtain such
fee, discount or commission and the amount thereof shall be applied to reduce
the compensation to be received by the Manager pursuant to Section 3 hereof.
Nothing herein shall prohibit the Board of Directors of the Corporation
from approving the payment by the Corporation of additional compensation to
others for consulting services, supplemental research and security and economic
analysis.
5. Term of Agreement. This Agreement shall continue in full force and
effect with respect to a Series of the Corporation until December 29, 1989, and
from year to year thereafter if such continuance is approved in the manner
required by the Act and if the Manager shall not have notified the Corporation
in writing at least 60 days prior to such December 29 or prior to December 29 of
any year thereafter if it does not desire such continuance; provided, however,
that with respect to a Series of the Corporation which first offers its shares
to the public subsequent to the first meeting of shareholders of the Series
after the date hereof, this Agreement shall continue in full force and effect
until the earlier of (a) two years from the date such shares are first so
offered and (b) the first meeting of shareholders of such Series after such
date. If approved at such meeting by the affirmative vote of a majority of the
outstanding voting securities (as defined by the Act) of such Series, this
Agreement shall continue in full force and effect with respect to such Series,
from year to year thereafter if such continuance is approved in the manner
required by the Act and the Manager shall not have notified the Corporation in
writing at least 60 days prior to the anniversary date of the previous
continuance that it does not desire such continuance with respect to such
Series. This Agreement may be terminated at any time with respect to any or all
Series, without payment of penalty by the Corporation, or on 60 days' written
notice to the Manager by vote of the Board of Directors of the Corporation or by
vote of a majority of the outstanding voting securities of the affected Series
of the Corporation (as defined by the Act). This Agreement shall automatically
terminate in the event of its assignment (as defined by the Act). The failure of
any Series of the Corporation to approve the continuance of this Agreement, or
the termination of this Agreement with respect to any Series shall be without
prejudice to the effectiveness of this Agreement with respect to any other
Series.
6. Right of Manager in Corporate Name. The Manager and the Corporation each
agree that the word "Seligman", which comprises a component of the Corporation's
name, is a property right of the Manager. The Corporation agrees and consents
that (i) it will only use the word "Seligman" as a component of its corporate
name and for no other purpose, (ii) it will not purport to grant to any third
party the right to use the word "Seligman" for any purpose, (iii) the Manager or
any corporate affiliate of the Manager may use or grant to others the right to
use the word "Seligman", or any combination or abbreviation thereof, as all or a
portion of a corporate or business name or for any commercial purpose, including
a grant of such right
-3-
<PAGE>
to any other investment company, and at the request of the Manager, the
Corporation will take such action as may be required to provide its consent to
the use of the word "Seligman", or any combination or abbreviation thereof, by
the Manager or any corporate affiliate of the Manager, or by any person to whom
the Manager or an affiliate of the Manager shall have granted the right to such
use; and (iv) upon the termination of any management agreement into which the
Manager and the Corporation may enter, the Corporation shall, upon request by
the Manager, promptly take action, at its own expense, as may be necessary to
change its corporate name to one not containing the word "Seligman" and
following such change, shall not use the word "Seligman", or any combination
thereof, as a part of its corporate name or for any other commercial purpose,
and shall use its best efforts to cause its officers, directors and shareholders
to take any and all actions which the Manager may request to effect the
foregoing and to reconvey to the Manager any and all rights to such word.
7. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. Anything herein to the
contrary notwithstanding, this Agreement shall not be construed to require, or
to impose any duty upon either of the parties, to do anything in violation of
any applicable laws or regulations.
IN WITNESS WHEREOF, the Corporation and the Manager have caused this
Agreement to be executed by their duly authorized officers as of the date first
above written.
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
By
--------------------------------------
J. & W. SELIGMAN & CO. INCORPORATED
By
--------------------------------------
-4-
DISTRIBUTING AGREEMENT
DISTRIBUTING AGREEMENT, dated as of January 1, 1993, between SELIGMAN
TAX-EXEMPT FUND SERIES, INC., a Maryland corporation (the "Fund"), and SELIGMAN
FINANCIAL SERVICES, INC., a Delaware corporation ("Seligman Financial
Services").
In consideration of the mutual agreements herein made, the parties
hereto agree as follows:
1. Exclusive Distributor. The Fund hereby agrees that Seligman Financial
Services shall be for the period of this Agreement exclusive agent for
distribution within the United States and its territories, and Seligman
Financial Services agrees to use its best efforts during such period to
effect such distribution of shares of Capital Stock ("Shares") of the Fund;
provided, however, that nothing herein shall prevent the Fund, if it so
elects, from selling or otherwise distributing its Shares directly to any
persons other than dealers. The Fund understands that Seligman Financial
Services also acts as agent for distribution of the shares of capital stock
or beneficial interest of other open-end investment companies which have
entered into management agreements with J. & W. Seligman & Co. Incorporated
(the "Manager").
2. Sales of Shares. Seligman Financial Services is authorized, as agent for
the Fund and not as principal, (a) to sell Shares of the Fund to such
dealers as Seligman Financial Services may select pursuant to the terms of
written sales agreements (which may also relate to sales of shares of
capital stock or shares of beneficial interest of other open-end investment
companies which have entered into management agreements with the Manager),
in form or forms approved by the Fund, and (b) to sell Shares of the Fund
to other purchasers on such terms as may be provided in the then current
prospectus of the Fund relating to such Shares; provided, however,that no
sales of Shares shall be confirmed by Seligman Financial Services at any
time when, according to advice received by Seligman Financial Services from
the Fund, the officers of the Fund have for any reason sufficient to them
temporarily or permanently suspended or discontinued the sale and issuance
of the Shares. Each sale of Shares shall be effected by Seligman Financial
Services only at the applicable price determined by the Fund in the manner
prescribed in its then current prospectus relating to such Shares. Seligman
Financial Services shall comply with all applicable laws, rules and
regulations including, without limiting the generality of the foregoing,
all rules or regulations made or adopted pursuant to Section 22 of the
Investment Company Act of 1940 (the "1940 Act") by the
1
<PAGE>
Securities and Exchange Commission or any securities association registered
under the Securities Exchange Act of 1934.
2
<PAGE>
The Fund agrees, as long as its Shares may legally be issued, to fill all
orders confirmed by Seligman Financial Services in accordance with the
provisions of this Agreement.
3. Repurchase Agent. Seligman Financial Services is authorized, as agent for
the Fund and not as principal, to accept offers for resale to the Fund and
to repurchase on behalf of the Fund Shares of each series of the Fund at
net asset values determined by the Fund in conformity with its then current
prospectus relating to such Shares.
4. Compensation. As compensation for the services of Seligman Financial
Services under this Agreement, Seligman Financial Services shall be
entitled to receive the sales charge, determined in conformity with the
Fund's then current prospectus relating to such Shares, on all sales of
Shares of the Fund confirmed by Seligman Financial Services hereunder and
for which payment has been received, less the dealers' concession allowed
in respect of such sales. In addition, in accordance with the terms of the
Fund's Administration, Shareholder Services and Distribution Plans (the
"Plans"), each of the series of the Fund may make payments from time to
time to Seligman Financial Services in accordance with the terms and
limitations of, and for the purposes set forth in the Plans.
5. Expenses. Seligman Financial Services agrees promptly to pay or reimburse
the Fund for all expenses (except expenses incurred by the Fund in
connection with the preparation, printing and distribution of any
prospectus or report or other communication to shareholders, to the extent
that such expenses are incurred to effect compliance with any Federal or
State law or to enable such distribution to shareholder(s) (a) of printing
and distributing copies of any prospectus and of preparing, printing and
distributing any other material used by Seligman Financial Services in
connection with offering Shares of the Fund for sale, and (b) of
advertising in connection with such offering. The Fund agrees to pay all
expenses in connection with the registration of Shares of the Fund under
the Securities Act of 1933 (the "Act"), all fees and related expenses which
may be incurred in connection with the qualification of Shares of the Fund
for sale in such States (as well as the District of Columbia, Puerto Rico
and other territories) as Seligman Financial Services may designate, and
all expenses in connection with maintaining facilities for the issue and
transfer of its Shares, of supplying information, prices and other data to
be furnished by it hereunder, and through Union Data Service Center, Inc.,
of all data processing and related services related to the share
distribution activity contemplated hereby.
3
<PAGE>
The Fund agrees to execute such documents and to furnish such information
as may be reasonably necessary, in the discretion of the Directors of the
Fund, in connection with the qualification of Shares of the Fund for sale
in such States (as well as the District of Columbia, Puerto Rico and other
territories) as Seligman Financial Services may designate. Seligman
Financial Services also agrees to pay all fees and related expenses
connected with its own qualification as a broker or dealer under Federal or
State laws and, except as otherwise specifically provided in this Agreement
or agreed to by the Fund, all other expenses incurred by Seligman Financial
Services in connection with the sale of Shares of the Fund as contemplated
in this Agreement (including the expenses of qualifying the Fund as a
dealer or broker under the laws of such States as may be designated by
Seligman Financial Services, if deemed necessary or advisable by the Fund).
It is understood and agreed that any payments made to Seligman Financial
Services pursuant to the Plans may be used to defray some or all of the
expenses incurred by Seligman Financial Services pursuant to this
Agreement.
6. Prospectus and Other Information. The Fund represents and warrants to and
agrees with Seligman Financial Services that:
(a) A registration statement, including one or more prospectuses relating
to the Shares, has been filed by the Fund under the Act and has become
effective. Such registration statement, as now in effect and as from
time to time hereafter amended, and also any other registration
statement relating to the Shares which may be filed by the Fund under
the Act which shall become effective, is herein referred to as the
"Registration Statement", and any prospectus or prospectuses filed by
the Fund as a part of the Registration Statement, as the "Prospectus".
(b) At all times during the term of this Agreement, except when the
officers of the Fund have suspended or discontinued the sale and
issuance of Shares of the Fund as contemplated by Section 2 hereof,
the Registration Statement and Prospectus will conform in all respects
to the requirements of the Act and the rules and regulations of the
Securities and Exchange Commission, and neither of such documents will
include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the
statement therein not misleading, except that the foregoing does not
apply to any statements or omissions in either of such documents based
upon written information furnished to the Fund by Seligman Financial
Services specifically for use therein.
4
<PAGE>
The Fund agrees to prepare and furnish to Seligman Financial Services from
time to time a copy of its Prospectus, and authorizes Seligman Financial
Services to use such Prospectus, in the form furnished to Seligman
Financial Services from time to time, in connection with the sale of the
Fund's Shares. The Fund also agrees to furnish Seligman Financial Services
from time to time, for use in connection with the sale of such Shares, such
information with respect to the Fund and its Shares as Seligman Financial
Services may reasonably request.
7. Reports. Seligman Financial Services will prepare and furnish to the
Directors of the Fund at least quarterly a written report complying with
the requirements of Rule 12b-1 under the 1940 Act setting forth all amounts
expended under the Plans and the purposes for which such expenditures were
made.
8. Indemnification. (a) The Fund will indemnify and hold harmless Seligman
Financial Services and each person, if any, who controls Seligman Financial
Services within the meaning of the Act against any losses, claims, damages
or liabilities to which Seligman Financial Services or such controlling
person may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Fund's Registration Statement
or Prospectus or any other written sales material prepared by the Fund
which is utilized by Seligman Financial Services in connection with the
sale of Shares or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
(in the case of the Registration Statement and Prospectus) necessary to
make the statements therein not misleading or (in the case of such other
sales material) necessary to make the statements therein not misleading in
the light of the circumstances under which they were made; and will
reimburse Seligman Financial Services and each such controlling person for
any legal or other expenses reasonably incurred by Seligman Financial
Services or such controlling person in connection with investigating or
defending any such loss, claim, damage, liability or action; provided,
however, that the Fund will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based
upon any untrue statement or alleged untrue statement or omission or
alleged omission made in such Registration Statement or Prospectus in
conformity with written information furnished to the Fund by Seligman
Financial Services specifically for use therein; and provided, further,
that nothing herein shall be so construed as to protect Seligman Financial
Services against any liability to the Fund or its security holders to which
Seligman Financial Services would otherwise be
5
<PAGE>
subject by reason of willful misfeasance, bad faith or gross negligence, in
the performance of its duties, or by reason of the reckless disregard by
Seligman Financial Services of its obligations and duties under this
Agreement. This indemnity agreement will be in addition to any liability
which the Fund may otherwise have.
(b) Seligman Financial Services will indemnify and hold harmless the Fund,
each of its Directors and officers and each person, if any, who
controls the Fund within the meaning of the Act, against any losses,
claims, damages or liabilities to which the Fund or any such Director,
officer or controlling person may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in
the Registration Statement or Prospectus or any sales material not
prepared by the Fund which is utilized in connection with the sale of
Shares or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein or (in the case of the Registration Statement and Prospectus)
necessary to make the statements therein not misleading or (in the
case of such other sales material) necessary to make the statements
therein not misleading in the light of the circumstances under which
they were made, in the case of the Registration Statement and
Prospectus to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission
was made in conformity with written information furnished to the Fund
by Seligman Financial Services specifically for use therein; and
Seligman Financial Services will reimburse any legal or other expenses
reasonably incurred by the Fund or any such Director, officer or
controlling person in connection with investigating or defending any
such loss, claim, damage, liability or action. This indemnity
agreement will be in addition to any liability which Seligman
Financial Services may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action, such indemnified party will,
if a claim in respect thereof is to be made against the indemnifying
party under this Section, notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying
party will not relieve it from liability which it may have to any
indemnified party otherwise than under this Section. In case any such
action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may
wish, to assume the defense thereof, with counsel satisfactory to such
indemnified party, and after notice from the indemnifying party to
such indemnified party of its
6
<PAGE>
election to assume the defense thereof, the indemnifying party will
not be liable to such indemnified party under this Section for any
legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable
costs of investigation.
9. Effective Date. This Agreement shall become effective upon its execution by
an authorized officer of the respective parties to this Agreement, but in
no event prior to shareholder approval of the Plans.
10. Term of Agreement. This Agreement shall continue in effect until December
31 of the year in which it is first effective and through December 31 of
each year thereafter if such continuance is approved in the manner required
by the 1940 Act and the rules thereunder and Seligman Financial Services
shall not have notified the Fund in writing at least 60 days prior to the
anniversary date of the previous continuance that it does not desire such
continuance. This Agreement may be terminated at any time, without payment
of penalty on 60 days' written notice to the other party by vote of a
majority of the Directors of the Fund who are not interested persons (as
defined in the 1940 Act) of the Fund and have no direct or indirect
financial interest in the operation of the Plans or any agreement related
thereto, or by vote of a majority of the outstanding voting securities of
the Fund (as defined in the 1940 Act). This Agreement shall automatically
terminate in the event of its assignment (as defined in the 1940 Act).
11. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. Anything herein to the
contrary notwithstanding, this Agreement shall not be construed to require,
or to impose any duty upon, either of the parties to do anything in
violation of any applicable laws or regulations.
IN WITNESS WHEREOF, the Fund and Seligman Financial Services have caused
this Agreement to be executed by their duly authorized officers as of the date
first above written.
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
By
-------------------------------
Ronald T. Schroeder, President
7
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
By
-------------------------------
Donald R. Pitti, President
ADDENDUM
TO
Sales Agreement
covering shares of capital stock
or shares of beneficial interest of
the Seligman Mutual Funds
between
SELIGMAN FINANCIAL SERVICES, INC.
and
DEALER
Dear Dealer:
Your Sales Agreement with Seligman Financial Services, Inc. ("SFSI") is
hereby amended to include the following provisions in connection with the
offering by certain of the Seligman Mutual Funds of Class B shares as described
in each applicable prospectus:
1. Dealer agrees to comply with the attached "Policies and Procedures" with
respect to sales of Seligman Mutual Funds offering three classes of shares.
2. SFSI shall be entitled to a contingent deferred sales load ("CDSL") on
redemptions within six years of purchase on any Class B shares sold and
within one year of purchase on any Class D shares sold. With respect to
omnibus accounts in which Class B shares or Class D shares are held at
Seligman Data Corp. ("SDC") in Dealer's name, Dealer agrees that by the
tenth day of each month it will furnish to SDC a report of each redemption
in the preceding month to which a CDSL was applicable, accompanied by a
check payable to SFSI in payment of the CDSL due.
3. If, with respect to a redemption of any Class B shares or Class D shares
sold by Dealer, the CDSL is waived because the redemption qualifies for a
waiver set forth in the Fund's prospectus, Dealer shall promptly remit to
SFSI an amount equal to the payment made by SFSI to Dealer at the time of
sale with respect to such Class B shares or Class D Shares.
4. The Dealer will comply in all respects with Notice to Members 95-80 of the
National Association of Securities Dealers, Inc. regarding members
obligations and responsibilities regarding mutual fund sales practices.
The sale of any Class A,Class B or Class D shares of a Seligman Mutual Fund
will constitute Dealer's acceptance of and agreement with the terms set forth
herein.
<PAGE>
Exhibit C
POLICIES AND PROCEDURES
In connection with the offering by the Funds of three classes of shares,
one subject to a front-end sales load and a service fee ("Class A Shares"), one
subject to a service fee, a distribution fee, no front-end sales load and a
contingent deferred sales load on redemptions within six years of purchase
("Class B Shares") and one subject to a service fee, a distribution fee, no
front-end sales load and a contingent deferred sales load on redemptions within
one year of purchase ("Class D Shares"), it is important for an investor to
choose the method of purchasing shares which best suits his or her particular
circumstances. To assist investors in these decisions, Seligman Financial
Services has instituted the following policies with respect to orders for
Shares:
1. No purchase order may be placed for Class B Shares or Class D Shares
for amounts of $4,000,000 or more.
2. Any purchase order for less than $4,000,000 may be for either Class A,
Class B or Class D Shares in light of the relevant facts and
circumstances, including:
a. the specific purchase order dollar amount;
b. the length of time the investor expects to hold his Shares; and
c. any other relevant circumstances such as the availability of
purchases under a Letter of Intent, Volume Discount, or Right of
Accumulation.
There are instances when one method of purchasing Shares may be more
appropriate than another. For example, an investor who would qualify for a
significant discount from the maximum sales load on Class A Shares may determine
that payment of such a reduced front-end sales load and service fee is
preferable to payment of higher ongoing distribution fee. On the other hand, an
investor whose order would not qualify for such a discount may wish to have all
of his or her funds invested in Class B or Class D Shares. An investor who
expects to hold his or her shares for longer than eight years might prefer Class
B Shares over Class D Shares because of the conversion feature; once the Class B
Shares have converted to Class A Shares, the ongoing distribution fees will be
reduced. Class D Shares may remain a more attractive choice for shorter-term
investors because of the contingent deferred sales load on such shares is only
1%, and it does not apply if the investor owns his or her shares for at least
one year. If an investor anticipates that he or she will redeem his or her Class
B Shares or Class D Shares while still subject to a contingent deferred sales
charge, the investor may, depending on the amount of the purchase, pay an amount
greater than the sales load and service fee attributable to Class A Shares.
Appropriate supervisory personnel within your organization must ensure that
all employees receiving investor inquiries about the purchase of Shares of a
Fund advise the investor of then available pricing structures offered by the
Fund, and the impact of choosing one method over another. In some instances it
may be appropriate for a supervisory person to discuss a purchase with the
investor.
Questions relating to this policy should be directed to Stephen J. Hodgdon,
President, Seligman Financial Services at (212) 850-1217.
<PAGE>
SALES AGREEMENT
covering shares of capital stock
and/or shares of beneficial interest of
THE SELIGMAN MUTUAL FUNDS
Seligman Capital Fund, Inc.
Seligman Common Stock Fund, Inc.
Seligman Communications and Information Fund, Inc.
Seligman Frontier Fund, Inc.
Seligman Growth Fund, Inc.
Seligman Henderson Global Fund Series, Inc.
Seligman High Income Fund Series
Seligman Income Fund, Inc.
Seligman New Jersey Tax-Exempt Fund, Inc.
Seligman Pennsylvania Tax-Exempt Fund Series
Seligman Tax-Exempt Fund Series, Inc.
Seligman Tax-Exempt Series Trust
between
SELIGMAN FINANCIAL SERVICES, INC.
and
--------------------------------------------------------------
Dealer
The Dealer named above and Seligman Financial Services, Inc., exclusive agent
for distribution of shares of capital stock of Seligman Capital Fund, Inc.,
Seligman Common Stock Fund, Inc., Seligman Communications and Information Fund,
Inc., Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman
Henderson Global Fund Series, Inc., Seligman Income Fund, Inc., Seligman New
Jersey Tax-Exempt Fund, Inc., and Seligman Tax-Exempt Fund Series, Inc., and
shares of beneficial interest of Seligman High Income Fund Series, Seligman
Pennsylvania Tax-Exempt Fund, and Seligman Tax-Exempt Series Trust, agree to the
terms and conditions set forth in this agreement.
Dealer Signature Seligman Financial Services, Inc. Acceptance
- ---------------------------- ----------------------------
Principal Officer Stephen J. Hodgdon, President
SELIGMAN FINANCIAL SERVICES, INC.
- ---------------------------- 100 Park Avenue
Address New York, New York 10017
- ---------------------------- ----------------------------
Employer Identification No. Date
REV 1/95
<PAGE>
The Dealer and Seligman Financial Services, Inc. ("Seligman Financial
Services"), as exclusive agent for distribution of Class A and Class D Shares
(as described in the "Policies and Procedures," as set forth below) of the
Capital Stock and/or Class A and Class D Shares of beneficial interest
(collectively, the "Shares") of Seligman Capital Fund, Inc., Seligman Common
Stock Fund, Inc., Seligman Communications and Information Fund, Inc., Seligman
Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman Henderson Global Fund
Series, Inc., Seligman High Income Fund Series, Seligman Income Fund, Inc.,
Seligman New Jersey Tax-Exempt Fund, Inc., Seligman Pennsylvania Tax-Exempt
Fund, Seligman Tax-Exempt Fund Series, Inc. and Seligman Tax-Exempt Series Trust
and or any other mutual fund for which Seligman Financial Services is exclusive
agent for distribution (herein called the Funds), agree as follows:
1. The Dealer agrees to comply with the attached "Policies and Procedures"
with respect to sales of Seligman Mutual Funds offering two classes of
shares, as set forth below.
2. An order for Shares of one or more of the Funds, placed by the Dealer with
Seligman Financial Services, will be confirmed at the public offering price
as described in each Fund's current prospectus. Unless otherwise agreed
when an order is placed, the Dealer shall remit the purchase price to the
Fund, or Funds, with issuing instruction, within the period of time
prescribed by existing regulations. No wire orders under $1,000 may be
placed for initial purchases.
3. Shares of the Funds shall be offered for sale and sold by the Dealer only
at the applicable public offering price currently in effect, determined in
the manner prescribed in each Fund's prospectus. Seligman Financial
Services will make a reasonable effort to notify the Dealer of any
redetermination or suspension of the current public offering price, but
Seligman Financial Services shall be under no liability for failure to do
so.
4. On each purchase of Shares by the Dealer, the Dealer shall be entitled,
based on the Class of Shares purchased and except as provided in each
Fund's current prospectus, to a concession determined as a percentage of
the price to the investor as set forth in each Fund's current prospectus.
On each purchase of Class A Shares, Seligman Financial Services reserves
the right to receive a minimum concession of $.75 per transaction. No
concessions will be paid to the Dealer for the investment of dividends in
additional shares.
5. Except for sales to and purchases from the Dealer's retail customers, all
of which shall be made at the applicable current public offering price or
the current price bid by Seligman Financial Services on behalf of the Fund,
the Dealer agrees to buy Shares only through Seligman Financial Services
and not from any other sources and to sell shares only to Seligman
Financial Services, the Fund or its redemption agent and not to any other
purchasers.
6. By signing this Agreement, both Seligman Financial Services and the Dealer
warrant that they are members of the National Association of Securities
Dealers, Inc., and agree that termination of such membership at any time
shall terminate this Agreement forthwith regardless of the provisions of
paragraph 10 hereof. Each party further agrees to comply with all rules and
regulations of such Association and specifically to observe the following
provisions:
(a) Neither Seligman Financial Services nor the Dealer shall withhold
placing customers' orders for Shares so as to profit itself as a
result of such withholding.
(b) Seligman Financial Services shall not purchase Shares from any of the
Funds except for the purpose of covering purchase orders already
received, and the Dealer shall not purchase Shares of any of the Funds
through Seligman Financial Services other than for investment, except
for the purpose of covering purchase orders already received.
<PAGE>
(c) Seligman Financial Services shall not accept a conditional order for
Shares on any basis other than at a specified definite price. The
Dealer shall not, as principal, purchase Shares of any of the Funds
from a recordholder at a price lower than the bid price, if any, then
quoted by or for the Fund, but the Dealer shall not be prevented from
selling Shares for the account of a record owner to Seligman Financial
Services, the Fund or its redemption agent at the bid price currently
quoted by or for such Fund, and charging the investor a fair
commission for handling the transaction.
(d) If Class A Shares are repurchased by a Fund or by Seligman Financial
Services as its agent, or are tendered for redemption within seven
business days after confirmation by Seligman Financial Services of the
original purchase order of the Dealer for such Shares, (i) the Dealer
shall forthwith refund to Seligman Financial Services the full
concession allowed to the Dealer on the original sales and (ii)
Seligman Financial Services shall forthwith pay to the Fund Seligman
Financial Services' share of the "sales load" on the original sale by
Seligman Financial Services, and shall also pay to the Fund the refund
which Seligman Financial Services received under (i) above. The Dealer
shall be notified by Seligman Financial Services of such repurchase or
redemption within ten days of the date that such redemption or
repurchase is placed with Seligman Financial Services, the Fund or its
authorized agent. Termination or cancellation of this Agreement shall
not relieve the Dealer or Seligman Financial Services from the
requirements of this clause (d).
7. (a) Seligm an Financial Services shall be entitled to a contingent
deferred sales load ("CDSL") on redemptions within one year of
purchase on any Class D Shares sold. With respect to omnibus accounts
in which Class D Shares are held at Seligman Data Corp. ("SDC") in the
Dealer's name, the Dealer agrees that by the tenth day of each month
it will furnish to SDC a report of each redemption in the preceding
month to which a CDSL was applicable, accompanied by a check payable
to Seligman Financial Services in payment of the CDSL due.
(b) If, with respect to a redemption of any Class D Shares sold by the
Dealer, the CDSL is waived because the redemption qualifies for a
waiver set forth in the Fund's prospectus, the Dealer shall promptly
remit to Seligman Financial Services an amount equal to the payment
made by Seligman Financial Services to the Dealer at the time of sale
with respect to such Class D Shares.
8. In all transactions between Seligman Financial Services and the Dealer
under this Agreement, the Dealer will act as principal in purchasing from
or selling to Seligman Financial Services. The dealer is not for any
purposes employed or retained as or authorized to act as broker, agent or
employee of any Fund or of Seligman Financial Services and the Dealer is
not authorized in any manner to act for any Fund or Seligman Financial
Services or to make any representations on behalf of Seligman Financial
Services. In purchasing and selling Shares of any Fund under this
Agreement, the Dealer shall be entitled to rely only upon matters stated in
the current offering prospectus of the applicable Fund and upon such
written representations, if any, as may be made by Seligman Financial
Services to the Dealer over the signature of Seligman Financial Services.
9. Seligman Financial Services will furnish to the Dealer, without charge,
reasonable quantities of the current offering prospectus of each Fund and
sales material issued from time to time by Seligman Financial Services.
10. Either Party to this Agreement may cancel this Agreement by written notice
to the other party. Such cancellation shall be effective at the close of
business on the 5th day following the date on which such notice was given.
Seligman Financial Services may modify this Agreement at any time by
written notice to the Dealer. Such notice shall be deemed to have been
given on the date upon which it was either delivered personally to the
other party or any officer or member thereof, or was mailed postage-paid,
or delivered to a telegraph office for transmission to the other party at
his or its address as shown herein.
<PAGE>
11. This Agreement shall be construed in accordance with the laws of the State
of New York and shall be binding upon both parties hereto when signed by
Seligman Financial Services and by the Dealer in the spaces provided on the
cover of this Agreement. This Agreement shall not be applicable to Shares
of a Fund in a state in which such Fund Shares are not qualified for sale.
POLICIES AND PROCEDURES
In connection with the offering by the Funds of three classes of shares,
one subject to a front-end sales load and a service fee ("Class A Shares"), one
subject to a service fee, a distribution fee, no front-end sales load and a
contingent deferred sales load on redemptions within six years of purchase
("Class B Shares") and one subject to a service fee, a distribution fee, no
front-end sales load and a contingent deferred sales load on redemptions within
one year of purchase ("Class D Shares"), it is important for an investor to
choose the method of purchasing shares which best suits his or her particular
circumstances. To assist investors in these decisions, Seligman Financial
Services has instituted the following policies with respect to orders for
Shares:
1. No purchase order may be placed for Class B Shares or Class D Shares
for amounts of $4,000,000 or more.
2. Any purchase order for less than $4,000,000 may be for either Class A,
Class B or Class D Shares in light of the relevant facts and
circumstances, including:
a. the specific purchase order dollar amount;
b. the length of time the investor expects to hold his Shares; and
c. any other relevant circumstances such as the availability of
purchases under a Letter of Intent, Volume Discount, or Right of
Accumulation.
There are instances when one method of purchasing Shares may be more
appropriate than another. For example, an investor who would qualify for a
significant discount from the maximum sales load on Class A Shares may determine
that payment of such a reduced front-end sales load and service fee is
preferable to payment of higher ongoing distribution fee. On the other hand, an
investor whose order would not qualify for such a discount may wish to have all
of his or her funds invested in Class B or Class D Shares. An investor who
expects to hold his or her shares for longer than eight years might prefer Class
B Shares over Class D Shares because of the conversion feature; once the Class B
Shares have converted to Class A Shares, the ongoing distribution fees will be
reduced. Class D Shares may remain a more attractive choice for shorter-term
investors because of the contingent deferred sales load on such shares is only
1%, and it does not apply if the investor owns his or her shares for at least
one year. If an investor anticipates that he or she will redeem his or her Class
B Shares or Class D Shares while still subject to a contingent deferred sales
charge, the investor may, depending on the amount of the purchase, pay an amount
greater than the sales load and service fee attributable to Class A Shares.
Appropriate supervisory personnel within your organization must ensure that
all employees receiving investor inquiries about the purchase of Shares of a
Fund advise the investor of then available pricing structures offered by the
Fund, and the impact of choosing one method over another. In some instances it
may be appropriate for a supervisory person to discuss a purchase with the
investor.
Questions relating to this policy should be directed to Stephen J. Hodgdon,
President, Seligman Financial Services at (212) 850-1217.
- --------------------------------------------------------------------------------
J. & W. SELIGMAN & CO. INCORPORATED
MATCHED ACCUMULATION PLAN
(As amended and restated to include
all amendments through January 1, 1995)
- --------------------------------------------------------------------------------
<PAGE>
Table of Contents
Page
----
PREAMBLE ............................................................ 1
ARTICLE I Definitions ............................................. 1
1.1 Definitions ............................................. 1
1.2 Gender .................................................. 17
ARTICLE II Participation ........................................... 17
2.1 Initial Participation ................................... 17
2.2 Reemployment ............................................ 17
ARTICLE III Profit Sharing Contributions ............................ 17
3.1 Amount of Profit Sharing
Contributions ........................................... 17
3.2 Participants Eligible for
Profit Sharing Contributions ............................ 18
3.3 Allocation of Profit Sharing
Contributions ........................................... 18
3.4 Cash Election ........................................... 19
ARTICLE IV Salary Reduction, Voluntary, Matching
and Rollover Contributions .............................. 19
4.1. Salary Reduction Contributions .......................... 19
4.2 Limitation on Optional Deferrals
and Salary Reduction
Contributions ........................................... 20
<PAGE>
4.3 Voluntary Contributions ................................. 22
4.4 Changes in Rates of Salary
Reduction Contributions and/or
Voluntary Contributions ................................. 22
4.5 Matching Contributions .................................. 23
4.6 Limitation on Voluntary
Contributions and Matching
Contributions ........................................... 23
4.7 Rollover Contributions .................................. 26
4.8 Maximum Annual Addition ................................. 26
ARTICLE V Investment of the Trust Fund ............................ 28
5.1 Funds ................................................... 28
5.2 Investment of Prospective
Contributions ........................................... 28
5.3 Investment In Funds ..................................... 29
5.4 Transfers Among Funds ................................... 29
5.5 Reinvestments of Income
and Gains ............................................... 30
5.6 Limitation on Investments
in a Fund ............................................... 30
ARTICLE VI Vesting ................................................. 30
6.1 Certain Participants Hired Before
May 31, 1993 .......................................... 30
6.2 Other Participants .................................... 30
<PAGE>
ARTICLE VII Withdrawals During Service ........................... 32
7.1 In-Service Withdrawals (Other
Than for Hardship) ................................... 32
7.2 Hardship Withdrawals ................................. 33
7.3 Complete Withdrawal .................................. 35
7.4 Payments ............................................. 35
7.5 Rollover Contributions ............................... 35
ARTICLE VIII Loans ................................................ 35
8.1 Amount of Loans ...................................... 35
8.2 Payment of Loan ...................................... 36
8.3 Terms of Loan ........................................ 36
8.4 Repayment of Loan .................................... 36
8.5 Default .............................................. 37
8.6 Termination of Service or Plan ....................... 37
8.7 Maximum Number of Loans .............................. 37
ARTICLE IX Distributions Upon Termination
of Service ........................................... 37
9.1 Termination of Service ............................... 37
9.2 Deferred Distributions ............................... 38
9.3 Commencement of Benefits ............................. 38
<PAGE>
ARTICLE X Payments of Distributions and
Withdrawals .......................................... 39
10.1 Distributions ........................................ 39
10.2 Payments ............................................. 39
10.3 Designation of Beneficiary ........................... 39
10.4 Death Benefits ....................................... 39
10.5 Payments to Minors or Other
Persons Under a Disability ........................... 40
10.6 Dividends or Capital Gain
Distributions ........................................ 40
10.7 Predecessor Plan ..................................... 40
10.8 Direct Rollovers ..................................... 40
ARTICLE XI The Trust Fund ...................................... 41
11.1 Trust Fund ......................................... 41
11.2 Trustee ............................................ 41
11.3 Prohibition Against Diversion ...................... 41
11.4 Recordkeeping ...................................... 41
11.5 Expenses ........................................... 42
11.6 Voting ............................................. 42
ARTICLE XII Valuation of Interests and Statements
of Accounts ........................................ 42
12.1 Valuation .......................................... 42
<PAGE>
12.2 Changes in Valuation ............................... 42
12.3 Statement of Account ............................... 42
ARTICLE XIII Administration ..................................... 43
13.1 Appointment of Committee ........................... 43
13.2 Powers of the Committee ............................ 43
13.3 Procedures of the Committee ........................ 43
13.4 Delegation of Duties ............................... 43
13.5 Payment of Expenses ................................ 44
13.6 Duties and Responsibilities
of the Committee ................................... 44
13.7 Indemnification .................................... 44
ARTICLE XIV Claims Procedure ................................... 45
ARTICLE XV Amendment or Termination of the Plan
or Discontinuance of Employer
Contributions ...................................... 46
15.1 Amendment .......................................... 46
15.2 Termination ........................................ 46
15.3 Merger, Consolidation or
Transfer of Assets or
Liabilities ........................................ 46
15.4 Withdrawal of Employer ............................. 46
ARTICLE XVI General Provisions ................................. 47
16.1 Plan Is Not a Contract of
Employment ......................................... 47
16.2 Plan Is for the Exclusive
Benefit of Beneficiaries ........................... 47
16.3 Nonalienation of Benefits .......................... 47
16.4 Applicable Law ..................................... 47
EXHIBIT A ......................................................... 48
<PAGE>
PREAMBLE
J. & W. Seligman & Co. Incorporated, in order to establish a systematic
method by which its employees may both share in current profits and earn and
accumulate benefits payable upon termination of employment or retirement,
adopted this profit-sharing plan now known as the J. & W. Seligman & Co.
Incorporated Matched Accumulation Plan, effective January 1, 1981.
The Plan was amended from time to time and was last restated effective
January 1, 1989. Effective January 1, 1994, the Plan is again restated in this
Plan document. Except where the context expressly provides otherwise, this Plan,
as amended and restated as of January 1, 1994, applies to employees of an
Employer employed on or after such date; changes effected by any amendments
included in this restated Plan shall not be applicable to any Participant who
retired or died or whose employment otherwise terminated prior to January 1,
1994; all rights and benefits payable with respect to him shall be determined in
accordance with the provisions of the Plan and Trust as in effect on such date
of termination of employment.
<PAGE>
ARTICLE I
Definitions
1.1 Definitions. Wherever used herein, unless the context otherwise
indicates, the following terms shall have the meanings set forth below:
Accounts: The account or accounts established and maintained
in the Trust Fund pursuant to Article V on behalf
of each Participant, representing his interest in
one or more of the Funds established hereunder.
Act: The Employee Retirement Income Security Act of
1974. All references to any section of the Act
shall be deemed to refer not only to such section
but also to any amendment thereof and any
successor statutory provision.
Affiliate: (a) Any corporation or other business entity
(other than the Corporation) that is included in a
controlled group of corporations within which the
Corporation is also included, as provided in
Section 414(b) of the Code, or which is a trade or
business under common control with the
Corporation, as provided in Section 414(c) of the
Code, determined for purposes of Section 4.8, as
if the phrase
<PAGE>
"more than 50 percent" was substituted for the
phrase "at least 80 percent" each place it appears
in Section 1563(a)(1) of the Code, (b) Union Data
Service Center, Inc., (c) any organization
(whether or not incorporated) which is a member of
an affiliated service group (as defined in Section
414(m) of the Code) which includes the Corporation
and any other entity required to be aggregated
with the Corporation pursuant to regulations under
Section 414(o) of the Code and (d) any other
corporation or entity which has been so designated
by the Board for one or more purposes under the
Plan.
Agent: Union Data Service Center, Inc.
Anniversary Year: A period of 365 days beginning on the date an
individual first receives credit for an Hour of
Service beginning with his initial Service or his
reemployment date following a Break in Service.
Average Contribution
Percentage: With respect to any group of eligible Employees
for a Year, the average of the ratios (calculated
separately for each eligible Employee in the
<PAGE>
group) of (a) the aggregate of Voluntary
Contributions and Matching Contributions
(excluding any amounts used to satisfy the minimum
allocation described in Article II of Appendix A)
made on behalf of such eligible Employees for such
Year to (b) such eligible Employees' 414(s)
Compensation for such Year. Such Average
Contribution Percentage shall be computed to the
nearest one-hundredth of one percent of the
eligible Employee's 414(s) Compensation.
Average Deferral
Percentage: With respect to any specified group of eligible
Employees for a Year, the average of the ratios
(calculated separately for each eligible Employee
in the group) of (a) the Optional Deferrals and
Salary Reduction Contributions contributed on
behalf of such eligible Employees for such Year to
(b) such eligible Employees' 414(s) Compensation.
Such Average Deferral Percentage shall be computed
to the nearest one-hundredth of one percent of the
eligible Employee's 414(s) Compensation.
Beneficiary: The person or persons designated by a Participant
as his beneficiary in accordance with Section
10.3.
<PAGE>
Board: The board of directors of the Corporation.
Break in Service: An Anniversary Year during which an individual is
credited with no more than 500 Hours of Service.
Solely for the purpose of determining whether a
Break in Service has occurred, the individual
shall be credited with one Hour of Service (up to
501 such hours) for each hour for which he is
absent from work because of (a) pregnancy, (b)
birth of a child, (c) placement of a child in
connection with his adoption by the individual or
(d) caring for a child immediately following such
child's birth or placement for adoption. Such
hours shall be credited in the Anniversary Year in
which the absence from work began if necessary to
prevent a Break in Service in that year or, in any
other case, in the next following Anniversary
Year.
Cash Distribution: The amount that a Participant elects to receive in
cash rather than to have contributed to the Plan
as an Optional Deferral pursuant to Section 3.4.
<PAGE>
Code: The Internal Revenue Code of 1986. All references
to any section of the Code shall be deemed to
refer not only to such section but also to any
amendment thereof and any successor statutory
provision.
Committee: The committee appointed by the Board pursuant to
Article XIII.
Compensation: The aggregate cash remuneration (exclusive of any
commissions from sales, institutional advisory,
brokerage or wrap fee incentive plans, bonuses,
overtime or any payment made under this Plan or
any other employee benefit plan) received by an
individual from an Employer during the Year for
services rendered for the portion of a Year during
which he is a Participant; provided, however, that
if commissions from sales and/or incentive
payments are part of an individual's compensation
arrangement, Compensation for such individual
shall include such commissions from sales and/or
incentive payments although, except as provided in
the following sentence, Compensation for such
Employees shall not exceed $100,000 ($75,000 prior
to 1993) for any Year. Solely for the purpose of
determining
<PAGE>
the maximum amount of Salary Reduction
Contributions and/or Voluntary Contributions that
may be made on behalf of or by a Participant, the
$100,000 limit included in the preceding sentence
shall not apply. In any event, effective January
1, 1994, Compensation for any Participant shall
not exceed $150,000, as adjusted by the Secretary
of the Treasury or his delegate at the same time
and in the same manner as under Section 415(d) of
the Code.
Continuous Service: An Employee's employment with one or more
Employers or Affiliates commencing on the date an
Employee completes one Hour of Service, measured
in years and completed months, and any period of
time included in any leave of absence of up to two
years authorized by an Employer or an Affiliate
and any absence due to service in the armed
forces, provided that the individual returns to
service with an Employer or Affiliate immediately
after the expiration of such leave of absence or
within 90 days after discharge from the armed
forces (but, if he does not so return, his
Continuous Service shall be deemed to have
terminated at the commencement
<PAGE>
of such period). In the case of an Employee's
severance from the Service of an Employer or
Affiliate by reason of the resignation, discharge,
retirement, or death, of such Employee, Continuous
Service of the Employee will end on the date of
such severance. In the case of an Employee's
severance from the Service of an Employer or
Affiliate for any reason other than those
described in the preceding sentence (including,
without limitation, the disability, vacation, or
layoff of the Employee), Continuous Service of the
Employee will end on the first anniversary of the
date of such severance if the Employee has not
performed an Hour of Service during such period.
Corporation: J. & W. Seligman & Co. Incorporated, a Delaware
corporation, and any successor thereto.
Disability: Physical or mental incapacity which is likely to
be permanent and which prevents an Employee from
engaging in any occupation or performing any work
for compensation or profit for which he is
qualified by education, training or experience, as
<PAGE>
determined by the Committee in its sole discretion
on the basis of medical evidence certified by a
physician or physicians designated by it.
Effective Date: January 1, 1981.
Employee: Any individual who is employed by an Employer
other than any individual who (a) is designated as
a temporary employee by the Committee based on
uniform rules consistently applied to all persons
similarly situated or (b) has an employment
agreement in effect which provides that he will
not be eligible for the Plan.
Employer: The Corporation, any Affiliate or other subsidiary
that (a) has been designated by the Board as an
Employer, (b) has adopted the Plan with the
approval of its board or directors and (c) has not
ceased to be an Employer. In adopting the Plan for
the benefit of its Employees, an entity may limit
the application of the Plan to specified employees
or a group of employees of one or more of its
locations, operations or divisions. In designating
an entity as an Employer, the Board may limit the
participation of all or a
<PAGE>
portion of the Employees of such Employer so that
they are eligible only for (a) Profit Sharing
Contributions as described in Article III or (b)
Salary Reduction Contributions, Voluntary
Contributions, Matching Contributions and Rollover
Contributions as described in Article IV.
Employer Contributions: For any Year, the sum of Profit Sharing
Contributions, Matching Contributions and Salary
Reduction Contributions contributed under the Plan
by one or more Employers on behalf of a
Participant as provided in Articles III and IV.
Family Member: With respect to any Highly Compensated Employee
who is in the group consisting of the ten
employees who receive the highest total pay from
the Corporation or any Affiliate for the Year
(determined without regard to Sections 125 and
402(e)(3) of the Code), or a Five Percent
Shareholder, such individual's spouse, lineal
ascendants or descendants and the spouses of any
lineal ascendants or descendants.
Fiduciary: Any person to the extent that he (a) exercises any
<PAGE>
discretionary authority or discretionary control
respecting management of the Plan or exercises any
authority or control respecting management or
disposition of its assets, (b) renders investment
advice for a fee or other compensation, direct or
indirect, with respect to any moneys or other
property of the Plan, or has any authority or
responsibility to do so, or (c) has any
discretionary authority or responsibility in the
administration of the Plan. Such term includes
persons designated by fiduciaries named in the
Plan to carry out fiduciary responsibilities under
the Plan.
Five Percent Shareholder: Any person who owned (or is considered to own
within the meaning of Code Section 318) more than
five percent of the outstanding stock of an
Employer or stock possessing more than five
percent of the total combined voting power of all
stock of an Employer.
414(s) Compensation: The total pay paid to an Employee by an Employer
or Affiliate for the portion of a Year during
which he was eligible to be a Participant
hereunder prior to reduction for any contributions
made on a salary reduction
<PAGE>
basis and excluded from income under Code Sections
125 and 402(e)(3); provided, however, that the
Committee may select another definition of 414(s)
Compensation so long as such definition complies
with Section 414(s) of the Code.
Fund: One of the funds established pursuant to Section
5.1, and Funds shall mean all such funds.
Highly Compensated
Employee: For any Year, an eligible Employee who:
(a) in the previous Year:
(i) was a Five Percent Shareholder;
(ii) had compensation in excess of
$75,000;
(iii) had compensation in excess of
$50,000 and was in the group consisting
of the top 20% of employees of an
Employer or Affiliate (excluding for
such purpose all employees described in
Code Section 414(g)(8)) when ranked in
order of compensation for the previous
Year; or
(iv) was an officer of an Employer
or an Affiliate and had compensation in
excess of 50 percent of the dollar
limitation in effect under Section
415(b)(1)(A) of the Code; provided,
however, that no more than 50 employees
(or, if lesser, the greater of three
employees or 10 percent of the
employees) shall be treated as officers;
or
<PAGE>
(b) in the current Year:
(i) is a Five Percent Shareholder;
or
(ii) is one of the 100 employees of
an Employer or Affiliate with the
greatest compensation for such Year and
is described in subparagraphs
(a)(ii)-(iv) above for the current Year.
The $75,000 and $50,000 thresholds in
the preceding sentence shall be adjusted
at the same time and in the same manner
as the dollar limit on benefits under a
defined benefit plan is adjusted
pursuant to Section 415(d) of the Code.
The dollar threshold for a particular
look-back year is based on the dollar
threshold in effect for the look-back
year.
A former Employee shall be considered a
Highly Compensated Employee if he was a
Highly Compensated Employee for either
the Year in which his separation from
Service began or for any Year ending on
or after the former Employee's 55th
birthday.
The determination of who is a Highly
Compensated Employee, including the
determinations of the number and
identity of
<PAGE>
Employees in the top-paid group, the top
100 Employees, the number of Employees
treated as officers and the compensation
that is considered, will be made in
accordance with Section 414(q) of the
Code and the regulations thereunder.
Hours of Service: An individual shall be credited with
Hours of Service as follows: (a) if a
record is kept of his actual hours of
Service, one Hour of Service for each
hour for which he is directly or
indirectly paid or entitled to payment
(including such time as paid vacations,
holidays, sickness or layoffs and
including back pay, if any, irrespective
of mitigation of damages) from the
Corporation or an Affiliate; (b) if no
record is kept of his actual hours of
Service, 45 Hours of Service for each
week for which he would otherwise be
entitled to receive credit for an Hour
of Service under (a) above; and (c) 40
Hours of Service for each week included
in any leave of absence of up to two
years authorized by the Corporation or
an Affiliate and in any absence due to
service in the armed forces of the
United States, provided that he returns
to Service
<PAGE>
with the Corporation or an Affiliate
immediately after the expiration of such
leave of absence or within 90 days after
discharge from the armed forces. In the
event he does not so return, his Service
shall be deemed to have terminated at
the commencement of such period. The
foregoing shall be construed so as to
avoid duplication of Hours of Service
for a single hour. The rules issued by
the U.S. Department of Labor relating to
the determination of Hours of Service
for reasons other than the performance
of duties and the crediting of Hours of
Service to computation periods, found in
DOL Regulation 2530.20Ob-2(b) and (c),
are hereby incorporated by reference.
Matching Contributions: Contributions made by the Employers on
behalf of Participants in respect of
Salary Reduction Contributions and
Voluntary Contributions made after May
1, 1993, pursuant to Section 4.5.
Nonhighly Compensated
Employee: For any Year an eligible Employee who is
not a Highly Compensated Employee.
Notice to the Committee: Written notice on a form provided by the
Committee which is properly completed
<PAGE>
and delivered to the Committee or any
member thereof by hand or mail. Notice
to the Committee shall be deemed to have
been given when it is actually received
by the Committee or any member thereof.
Nonelective Deferral: The portion of the Profit Sharing
Contribution for any Year made on behalf
of a Participant that is not subject to
an election to receive a Cash
Distribution.
Optional Deferral: The portion of the Profit Sharing
Contribution for any Year made on behalf
of a Participant that is paid to the
Trust Fund by reason of his failure to
elect to receive a Cash Distribution.
Participant: An Employee who is at the time
participating in the Plan as provided in
Article II or where required by the
context, an individual who formerly
participated in the Plan.
Plan: The J. & W. Seligman & Co. Incorporated
Matched Accumulation Plan, as set forth
in this document and as it may be
amended from time to time.
Predecessor Plan: The J. & W. Seligman & Co. Profit
Sharing Plan, and,
<PAGE>
where the context requires, the Union
Service Corporation Employees' Thrift
Plan.
Profit Sharing
Contributions: Contributions made by Employers on
behalf of Participants pursuant to
Article III including Optional Deferrals
and contributions not subject to an
election to receive a Cash Distribution.
Profit Sharing Contributions made by or
on behalf of each Employer shall be
divided by the Board between Basic
Contributions and Supplemental
Contributions.
Profits: In respect of any Year, the current or
accumulated profits of the Corporation
and its subsidiaries, as determined
under generally accepted accounting
principles, before (a) provision for
Federal, state or local income taxes
based on net income and (b) any
contributions under the Plan.
Retirement: Retirement of a Participant on or after
attainment of an age established
pursuant to the uniform policy of his
Employer.
Rollover Contributions: Contributions transferred or contributed
to the Trust Fund pursuant to Section
4.7.
<PAGE>
Salary Reduction : Contributions made on behalf
Contributions:of Participants pursuant
to Section 4.1.
Service: Service by an individual as an employee
of the Corporation or an Affiliate
(including service prior to the time it
became such to the extent determined by
the Board or as otherwise required by
law) or as a leased employee within the
meaning of Section 414(n)(2) of the Code
if the Corporation or an Affiliate was
the recipient of such leased employee's
services.
Trust Agreement: The agreement of trust as in effect at
any time between the Corporation and the
Trustee relating to the Plan, which
Trust Agreement shall form a part of the
Plan.
Trust Fund: The property which is from time to time
held by the Trustee under the Trust
Agreement, as provided in Article XI.
Trustee: The trustee or trustees under the Trust
Agreement at the particular time.
Valuation Date: The end of each business day.
<PAGE>
Voluntary Contributions: After-tax contributions made by
Participants pursuant to Section 4.3.
Year: A calendar year.
Year of Vesting Service: An Anniversary Year during which an
individual is credited with at least
1,000 Hours of Service, whether or not
he performs Service throughout such
Anniversary Year. If an individual who
was a leased employee within the meaning
of Section 414(n)(2) of the Code becomes
an Employee, and an Employer or
Affiliate was the recipient of such
individual's services as a leased
employee, his period of service as a
leased employee shall be counted in
determining his Years of Vesting
Service, provided that the requirement
described in the preceding sentence
would have been satisfied if he had been
an Employee during such period. If an
individual has a Break in Service, his
Years of Vesting Service before such
break shall be disregarded unless either
(a) at the time of the Break in Service,
he was vested in any portion of his
Account attributable to Profit Sharing
Contributions or Matched Contributions
or (b) the number of consecutive
one-year Breaks in Service was less than
the greater of five or the number of his
Years of Vesting Service prior to such
Break in Service.
1.2 Gender. Wherever used herein, words in the masculine form shall be
deemed to refer to females as well as to males.
<PAGE>
ARTICLE II
Participation
2.1 Initial Participation. An individual who was an Employee on the
Effective Date and who was a participant in a Predecessor Plan became a
Participant on such Date. Thereafter, except as provided in the following
sentence, an Employee shall become a Participant on the first day of the month
coinciding with or next following his completion of six months of Continuous
Service. In the case of an Employee whose participation is limited to the
contributions made under Article IV, he shall be eligible to become a
Participant on the first day of any month coinciding with or next following his
completion of six months of Continuous Service. Solely for the purposes of this
Article II, the term "Service" shall include service with an entity that had
adopted a Predecessor Plan.
2.2 Reemployment. A Participant shall remain such until his termination of
Service. An Employee who was (or was eligible to be) a Participant and whose
Service resumes shall again become a Participant on the date on which he again
becomes an Employee. Each other Employee who resumes employment shall be
eligible to become a Participant upon the first day of the month in which he
meets the requirements of Section 2.1.
<PAGE>
ARTICLE III
Profit Sharing Contributions
3.1 Amount of Profit Sharing Contributions. Subject to the right of the
Board to modify, amend or terminate the Plan, the rights of the Employers to
modify, suspend or discontinue their respective Profit Sharing Contributions
under the Plan and the provisions of this Article III, each Employer shall
contribute to the Plan for each Year out of Profits the amount that the Board
shall determine to be its Profit Sharing Contribution for such Year; provided,
however, that any Profit Sharing Contribution for such Year shall not be greater
than the amount which is allowable as a deduction for Federal income tax
purposes. Notwithstanding the foregoing, if any Employer, which with any other
Employer is includible in an "affiliated group" of corporations within the
meaning of Section 1504(a) of the Code, is prevented from making a contribution
which it would otherwise have made under the Plan by reason of having no current
or accumulated earnings or profits because such earnings or profits are less
than the contribution which it would otherwise have made, then so much of the
Employer Contribution which such Employer was so prevented from making shall be
made for the benefit of the Participants who are Employees of such Employer by
any other Employer or Affiliates includible in such "affiliated group" to the
extent of their respective current or accumulated earnings or profits. Such
Profit Sharing Contributions shall be allocated in accordance with Sections 3.2,
3.3 and 3.4.
3.2 Participants Eligible for Profit Sharing Contributions. Basic
Contributions and Supplemental Contributions for any Year shall be allocated as
of December 31 of such Year, in the manner provided in Section 3.3, to
individuals who are Participants on such December 31, or whose Service as
Participants terminated during such Year by Retirement, Disability or death;
provided, however, that Supplemental Contributions shall only be allocated to a
Participant or former Participant who is not entitled to receive a bonus for
such Year, as determined by his Employer. In the case of any such individual
whose Service terminated during such Year by Retirement, Disability or death and
the value of whose Accounts has been paid pursuant to Article IX prior to the
end of such Year, he (or his Beneficiary) shall
<PAGE>
receive a distribution of the amount equal to his allocable share of Profit
Sharing Contributions for such Year. In the case of each other such individual,
his allocable share of Profit Sharing Contributions (less his Cash Distribution,
if any) for such Year shall be credited to his Accounts.
3.3 Allocation of Profit Sharing Contributions. Subject to Sections 3.4 and
4.2, the Basic Contribution and Supplemental Contribution of each Employer for
any Year shall be allocated among the individuals employed by such Employer and
described in Section 3.2 as entitled to receive an allocation of Basic
Contributions and/or Supplemental Contributions, respectively, in an amount
which bears the same ratio to each such Contribution as the Compensation for
such Year of each such individual as a Participant bears to the total
Compensation of all such individuals as Participants and Employees of such
Employer for such Year.
3.4 Cash Election. Each Participant, in lieu of having his entire share of
Profit Sharing Contributions for any Year paid to the Trust Fund and applied for
his benefit as provided in Article V, may elect, by Notice to the Committee not
later than December 31 of such Year or such other date as the Committee may in
its discretion determine, to receive a Cash Distribution in an amount equal to
33-l/3%, 50% or 66-2/3% of his share of Basic Contributions and/or 33-1/3%, 50%,
66-2/3% or 100% of his share of Supplemental Contributions. Cash Distributions
shall be paid by the Employers to Participants who have elected in any Year to
receive them as soon as practicable after the close of such Year. An election to
receive a Cash Distribution for any Year shall be irrevocable. Upon the death of
a Participant prior to the payment of a Cash Distribution which he has elected,
such Cash Distribution shall be payable to his Beneficiary.
<PAGE>
ARTICLE IV
Salary Reduction, Voluntary, Matching
and Rollover Contributions
4.1 Salary Reduction Contributions. (a) Effective May 1, 1993, subject to
the limits specified below and in Sections 4.2 and 4.8, each Participant may
elect to have his Compensation for each pay period reduced from 1% to 10% (in
whole integers) and such amount shall be contributed to the Trust Fund by his
Employer on his behalf. At any time, the Committee may reduce the rate of future
Salary Reduction Contributions to be made on behalf of Highly Compensated
Employees in order to satisfy the test described in Section 4.2.
(b) In any event, the aggregate of a Participant's Salary Reduction
Contributions, Optional Deferrals and any other elective deferral contributions
(within the meaning of Code Section 402(g)(3)) contributed on behalf of a
Participant for any Year under the Plan or any other plan maintained by the
Corporation or an Affiliate may not exceed $7,000 (or such greater amount as may
be permitted pursuant to Code Section 402(g)(5)). In the event a Participant's
Optional Deferrals and Salary Reduction Contributions exceeds the applicable
limit described in the preceding sentence, such excess (plus any income or minus
any loss allocable thereto, calculated in accordance with regulations issued by
the Secretary of the Treasury) shall be returned to the Participant by April
15th of the following Year.
(c) Salary Reduction Contributions for any pay period will be paid by the
Participant's Employer to the
<PAGE>
Trust Fund as soon as feasible after the end of each pay period.
4.2 Limitation on Optional Deferrals and Salary Reduction Contributions.
(a) If the aggregate of Optional Deferrals and Salary Reduction Contributions
made on behalf of Highly Compensated Employees for any Year is in excess of the
amount permitted under the following provisions for such Highly Compensated
Employees, such excess amounts plus the pro rata share of income and losses
thereon determined in accordance with regulations issued by the Secretary of the
Treasury, shall be distributed to such Highly Compensated Employees by March 15
of the following Year.
(b) All or a portion of the aggregate of Optional Deferrals and Salary
Reduction Contributions for the Highly Compensated Employees shall be deemed to
be excessive for any Year unless one of the following tests is satisfied:
(i) the Average Deferral Percentage of Highly Compensated Employees is
not more than the Average Deferral Percentage of Nonhighly Compensated
Employees multiplied by 1.25, or
(ii) the Average Deferral Percentage of Highly Compensated Employees
is not more than the Average Deferral Percentage of Nonhighly Compensated
Employees multiplied by 2.0; provided, however, that the Average Deferral
Percentage for the Highly Compensated Employees may not exceed the Average
Deferral Percentage for the Nonhighly Compensated Employees by more than
two percentage points.
(c) In the event any portion of a Participant's Optional Deferrals and
Salary Reduction Contributions are returned pursuant to Section 4.1(b) as a
result of the $7,000 (as adjusted by the Secretary of the Treasury) limit
applicable to such contributions, (i) any excess Optional Deferrals and Salary
Reduction Contributions required to be returned pursuant to this Section 4.2
shall be reduced by
<PAGE>
the amount of such excess deferrals and (ii) such Participant's Average Deferral
Percentage shall be determined before such excess deferral is returned;
provided, however, that excess deferrals made on behalf of Nonhighly Compensated
Employees under plans of the Corporation or an Affiliate shall be excluded in
determining such Employee's Average Deferral Percentage.
The amount of Optional Deferrals and Salary Reduction Contributions to be
distributed shall be determined by reducing the maximum amount of Optional
Deferrals and Salary Reduction Contributions to an adjusted maximum percentage,
which shall be the percentage that would cause one of the tests described in
Section 4.2(b) to be satisfied if each Highly Compensated Employee who
designated a percentage greater than such adjusted maximum percentage had
instead designated such percentage. The deferral percentage for each Highly
Compensated Employee shall be the lesser of the percentage otherwise applicable
or the adjusted maximum percentage determined under this subparagraph.
In the event a Participant's Salary Reduction Contributions and/or Optional
Deferrals are distributed to the Participant pursuant to Section 4.1(b) as a
result of being in excess of the dollar limitation applicable to such
contributions or pursuant to this Section 4.2, the value of the related Matching
Contributions plus the pro rata share of income and losses thereon, determined
in accordance with regulations issued by the Secretary of the Treasury, shall be
distributed to the Participant.
In determining the Average Deferral Percentage of a Highly Compensated
Employee who has a Family Member who is an Employee, the Average Deferral
Percentage for the family group (which is treated as one Highly Compensated
Employee) shall be the Average Deferral Percentage determined by combining the
Optional Deferrals, Salary Reduction Contributions and 414(s) Compensation for
all the eligible Family Members. The determination of the Average Deferral
<PAGE>
Percentage and the treatment of excess deferrals of Highly Compensated Employees
with Family Members who are Employees shall satisfy such other requirements as
may be prescribed in regulations issued by the Secretary of the Treasury.
The Average Deferral Percentage for any Highly Compensated Employee for any
Year who is eligible to have pre-tax contributions allocated to his account
under one or more plans described in Code Section 401(k) (other than an employee
stock ownership plan described in Code Section 4975(a)(7)) maintained by the
Corporation or an Affiliate in addition to this Plan shall be determined as if
all such contributions were made to this Plan. In the event this Plan must be
combined with one or more plans (other than an employee stock ownership plan
described in Code Section 4975(e)(7)) in order to satisfy the requirements of
Sections 401(a)(4) or 410(b) of the Code (other than the average benefits test
described in Code Section 410(b)(1) (A)(ii)), then all cash or deferred
arrangements that are included in such plans shall be treated as a single
arrangement for purposes of this Section 4.2.
4.3 Voluntary Contributions. (a) Effective May 1, 1993, subject to the
limits specified below and in Sections 4.6 and 4.8, each Participant may elect
to make Voluntary Contributions to the Plan equal to 1% to 10% of his
Compensation (in whole integers) for each pay period; provided, however, that in
no event may a Participant's Voluntary Contributions exceed the difference
between (i) 10% of his Compensation and (ii) the percentage of his Compensation
contributed as a Salary Reduction Contribution. At any time, the Committee may
reduce the rate of future Contributions to be made by Highly Compensated
Employees in order to satisfy the test described in Section 4.6.
(b) Voluntary Contributions for any pay period will be paid by the
Participant's Employer to the Trust Fund as soon as feasible after the end of
each pay period.
<PAGE>
4.4 Changes in Rates of Salary Reduction Contributions and/or Voluntary
Contributions. A Participant may change the percentage of his Compensation
contributed as a Salary Reduction Contribution and/or Voluntary Contribution;
provided, however, that such change may not be made more frequently than once in
any calendar quarter. In addition, such a Participant may completely suspend
Salary Reduction Contributions and/or Voluntary Contributions at any time,
provided, however, that in the event a Participant suspends making Basic
Contributions he shall not be eligible to resume any contribution until his
Basic Contributions have been suspended for at least three months. Such changes
shall be effective with the first payroll period commencing at least five days
after receipt of the Participant's election by the Committee. If the
Compensation of a Participant is changed, the dollar amount of his Salary
Reduction Contributions and Voluntary Contributions will automatically be
changed so that the percentage contributed is not changed.
4.5 Matching Contributions. Subject to Section 4.6 and 4.8 and to the right
of the Board to modify, amend or terminate the Plan and to the right of the
Employers to modify, suspend or discontinue their respective Matching
Contributions under the Plan, each Employer shall contribute to the Plan for
each pay period on behalf of each Participant in its employ an amount equal to
100% of the first 3% of his Compensation contributed on behalf of or by a
Participant as a Salary Reduction Contribution or Voluntary Contribution for
such pay period; provided, however, that in the case of a Participant for whom
commissions from sales and/or incentive payments are part of his compensation
arrangement, Compensation used to determine the maximum amount of his Matching
Contributions shall not exceed $100,000 for any Year.
4.6 Limitation on Voluntary Contributions and Matching Contributions. (a)
If the aggregate of Voluntary Contributions and Matching Contributions made on
behalf of the Highly Compensated Employees for any Year is in excess
<PAGE>
of the amount permitted under the following provisions for such Highly
Compensated Employees, such excess contributions plus the pro rata share of
income and losses thereon determined in accordance with regulations issued by
the Secretary of the Treasury shall be returned or distributed to such Highly
Compensated Employees to the extent required to satisfy such limitations by
March 15 of the following Year.
(b) All or a portion of the aggregate of Voluntary Contributions and
Matching Contributions for the Highly Compensated Employees shall be deemed to
be excessive for any Year unless one of the following tests is satisfied:
(i) the Average Contribution Percentage of Highly Compensated
Employees is not more than the Average Contribution Percentage of Nonhighly
Compensated Employees multiplied by 1.25, or
(ii) the Average Contribution Percentage of Highly Compensated
Employees is not more than the Average Contribution Percentage of Nonhighly
Compensated Employees multiplied by 2.0; provided, however, that the
Average Contribution Percentage for the Highly Compensated Employees may
not exceed the Average Contribution Percentage for the Nonhighly
Compensated Employees by more than two percentage points.
To the extent permitted by law and to the extent elected by the
Corporation, Optional Deferrals and Salary Reduction Contributions (in excess of
the amount of such contributions used to satisfy the test described in Section
4.2) allocated to a Participant's Account may be aggregated with the Voluntary
Contributions and Matching Contributions allocated to his Account in determining
his Average Contribution Percentage provided that the requirements contained in
Treas. Reg. Section 1.401(m)-1(b)(5) are satisfied. An eligible Employee's
Average Contribution Percentage for purposes of this Section 4.6
<PAGE>
shall be determined after a Participant's excess Optional Deferrals and Salary
Reduction Contributions are distributed to the Participant.
(c) The amount of Voluntary Contributions and Matching Contributions to be
distributed shall be determined by reducing the maximum amount of Voluntary
Contributions and Matching Contributions to an adjusted maximum percentage,
which shall be the percentage that would cause the requirements described in
Section 4.6(b) to be satisfied if each Highly Compensated Employee's Average
Contribution Percentage was reduced to such percentage. The contribution
percentage for each Highly Compensated Employee shall be the lesser of the
percentage otherwise applicable or the adjusted maximum percentage determined
under this subparagraph. A Highly Compensated Employee's contribution percentage
shall be reduced by distributing (i) first, unmatched Voluntary Contributions,
(ii) second, matched Voluntary Contributions and the related Matching
Contributions and (iii) third, other Matching Contributions.
In determining the Average Contribution Percentage of a Highly Compensated
Employee who has a Family Member who is an Employee, the Average Contribution
Percentage for the family group (which is treated as one Highly Compensated
Employee) shall be the Average Contribution Percentage determined by combining
Voluntary Contributions, Matching Contributions, 414(s) Compensation and, to the
extent elected by the Corporation, Optional Deferrals and Salary Reduction
Contributions, of all the eligible Family Members. The determination of the
Average Contribution Percentage and the treatment of excess contributions of
Highly Compensated Employees with Family Members who are Employees shall satisfy
such other requirements as may be prescribed in regulations issued by the
Secretary of the Treasury.
The Average Contribution Percentage for any Highly Compensated Employee for
any Year who is eligible to have matching employer contributions made on his
behalf or to make after-tax contributions under one or more plans
<PAGE>
described in Code Section 401(a) (other than an employee stock ownership plan
described in Code Section 4975(e)(7)) maintained by the Corporation or an
Affiliate in addition to this Plan shall be determined as if all such
contributions were made to this Plan. In the event that this Plan must be
combined with one or more other plans (other than an employee stock ownership
plan described in Code Section 4975(e)(7)) in order to satisfy the requirements
of Code Section 401(a)(4) or 410(b) (other than the average benefits test
described in Code Section 410(b)(2)(A)(ii)), all employee and matching
contributions are treated as made under a single plan for purposes of Section
401(m) of the Code.
(d) In the event that both of the tests described in Sections 4.2(b) and
4.6(b) are satisfied only by using the "2.0/two point" test described in
Sections 4.2(b)(i) and 4.6(b)(i) respectively, the Average Contribution
Percentage for Highly Compensated Employees shall be reduced to the extent
necessary to satisfy the aggregate limit described in the following sentence.
The aggregate limit shall equal the greater of (i) or (ii):
(i) the sum of (A) 1.25 multiplied by the greater of the Average
Contribution Percentage or the Average Deferral Percentage for the Year for
Nonhighly Compensated Employees plus (B) the lesser of the Average
Contribution Percentage or the Average Deferral Percentage for the Year for
Nonhighly Compensated Employees plus two percentage points; provided,
however, that the amount determined under this clause may not exceed the
product of 2.0 multiplied by the lesser of the Average Contribution
Percentage or the Average Deferral Percentage for Nonhighly Compensated
Employees; or
(ii) the sum of (A) 1.25 multiplied by the lesser of the Average
Contribution Percentage or the Average Deferral Percentage for the Year for
Nonhighly Compensated Employees plus (B) the greater of the Average
Contribution Percentage or the Average Deferral Percentage for the Year for
Nonhighly Compensated Employees plus two percentage points; provided,
however, that the amount determined under this clause (B) may not exceed
the product of 2.0 multiplied by the greater of the
<PAGE>
Average Contribution Percentage or the Average Deferral Percentage for
Nonhighly Compensated Employees.
4.7 Rollover Contributions. Subject to procedures established by the
Committee, each Employee shall be entitled to transfer to the Trust Fund all or
part of his balance in excess of his own contributions from an employees' trust
described in Section 401(a) of the Code if such transfer is made (a) within 60
days of the day he receives such balance from such trust or from an individual
retirement account described in Section 408(a) of the Code or an individual
retirement annuity described in Section 408(b) of the Code to which he had
contributed part or all of such balance within 60 days following the day he
received such balance or (b) pursuant to a direct rollover of an eligible
rollover distribution (as defined in Code Section 402(c)(4)) other than a
distribution which the Employee is entitled to receive as a beneficiary. Except
for purposes of Section 7.1, Rollover Contributions shall be treated as Profit
Sharing Contributions. An Employee who has made a Rollover Contribution shall be
considered a Participant for all purposes hereunder except that he shall not be
eligible to share in Profit Sharing Contributions, to have Salary Reduction
Contributions made on his behalf or to make Voluntary Contributions until he
becomes a Participant in accordance with Section 2.1.
4.8 Maximum Annual Addition. Notwithstanding anything to the contrary in
the Plan, the maximum "annual addition" (as hereinafter defined) on behalf of
any Participant for any Year shall not exceed (and, if necessary, shall be
reduced to) the lesser of $30,000 (or, if greater, 25% of the dollar limitation
in effect under Section 415(b)(1)(A) of the Code for the Year) or 25% of his
<PAGE>
total compensation (within the meaning of Code Section 415(c)(3)) for such Year.
The 25% of compensation limitation shall not apply to any contributions
considered "annual additions" pursuant to Code Section 419A(d)(2) after the
Participant's separation from service or Code Section 415(l)(1). The "annual
addition" for a Participant in a Year shall be the sum of (a) the Employer
Contributions allocated to his Account on his behalf for such Year, (b) the
Participant's Voluntary Contributions for such Year and (c) any other amounts
considered an "annual addition" pursuant to Code Section 415(c)(2) under any
plan qualified under Code Section 401(a) maintained by an Employer or Affiliate
or under Code Sections 415(l)(1) and 419A(d)(2).
In any case where a Participant also participates in a defined benefit plan
(as defined in Section 414(j) of the Code) of the Corporation or an Affiliate in
addition to being a Participant in this Plan, the sum of his defined benefit
plan fraction and the defined contribution plan fraction (both as defined
hereinafter) for any Year may not exceed 1.0. The defined benefit plan fraction
for any Year is a fraction the numerator of which is the projected annual
benefit of the Participant under such plan (determined as of the close of the
Year), and the denominator of which is the lesser of:
(a) the product of 1.25, multiplied by the dollar limitation in effect
under Section 415(b)(1)(A) of the Code for such Year; or
(b) the product of 1.4, multiplied by the amount which may be taken
into account under Section 415(b)(1) (B) of the Code with respect to the
Participant under the plan for such Year.
<PAGE>
The defined contribution plan fraction for any Year is a fraction the
numerator of which is the sum of the annual additions to the Participant's
Account as of the close of the Year, and the denominator of which is the
sum of the lesser of the following amounts determined for such Year and for
each prior year of Service with the Corporation or an Affiliate:
(i) the product of 1.25, multiplied by the dollar limitation in effect
under Section 415(c)(1)(A) of the Code for such Year; or
(ii) the product of 1.4, multiplied by the amount which may be taken
into account under Section 415(c)(1)(B) of the Code with respect to the
Participant under the Plan for such Year.
Prior to the end of each Year, the Committee shall determine whether, and to
what extent, the limitation of this Section 4.8 will prohibit the making of
Voluntary Contributions by a Participant or, after all such Voluntary
Contributions by a Participant have been prevented from being made, of Employer
Contributions for such Year on behalf of such Participant. The Committee shall
advise any affected Participant accordingly. Employer Contributions for any Year
which cannot be allocated to Participants and credited to their Accounts within
the limitation of this Section 4.8 shall not be contributed by the Employer for
such Year.
If as a result of a reasonable error in determining the amount of a
Participant's Compensation, the annual addition for a Participant would exceed
the limits described in this Section 4.8, the amount in excess of the
permissible annual addition shall be distributed to the Participant. In
addition, Optional Deferrals, Salary Reduction Contributions and Voluntary
Contributions may be distributed or returned to a Participant to the extent
necessary so that the limitation on annual additions is satisfied.
<PAGE>
ARTICLE V
Investment of the Trust Fund
5.1 Funds. The Trustee shall maintain such Funds, as are selected by the
Committee; provided that the Corporation must serve as manager and provide
investment management and administrative services to each Fund available under
the Plan.
5.2 Investment of Prospective Contributions. Upon first becoming a
Participant, an individual shall select (a) one or more of Funds in which all
his Profit Sharing Contributions shall be invested, (b) one or more Funds in
which his Salary Reduction Contributions shall be invested, (c) one or more
Funds in which his Matching Contributions shall be invested and (d) one or more
Funds in which his Voluntary Contributions shall be invested. Each investment
direction shall be made in 5% increments and a minimum of l0% of any specified
type of contribution must be invested in any one Fund. It shall be the
responsibility of the Committee and not the Trustee, to ensure compliance with
such limits. Any investment direction given by a Participant shall be deemed to
be a continuing direction with respect to all subsequent contributions until
changed. Not more than once in any calendar quarter with respect to each
investment election, a Participant may change his investment direction with
respect to future contributions by Notice to the Committee. In the absence of an
investment direction by the Participant, his Salary Reduction Contributions,
Matching Contributions, Participant Contributions and Rollover Contributions
shall be invested in the Seligman Cash Management Fund (or any successor fund
with similar investments as selected by the Committee).
<PAGE>
5.3 Investment In Funds. As soon as practicable after the end of each Year,
in respect of Profit Sharing Contributions, and as soon as practicable after the
end of each pay period, in respect of Salary Reduction Contributions, Matching
Contributions, and Voluntary Contributions in accordance with the investment
directions of Participants, each Employer shall:
(i) except as provided in subparagraph (ii) below, forward the
contributions made by or on behalf of Participants in its employ, to the
respective Funds on behalf of the Trustee and the Trustee will be advised
by the Agent of the total amount contributed to each such Fund and the
number of shares in each such Fund to be credited to the Accounts of
Participants; and
(ii) in the event that the Tri-Continental Fund is available under the
Plan, with respect to such Fund, forward the contributions made by or on
behalf of Participants in its employ, to the Trustee for investment in such
Fund, in accordance with the methods of purchase described in the current
prospectus of Tri-Continental Corporation, whereupon the Trustee shall
advise the Agent as to the number of shares of common stock of
Tri-Continental Corporation purchased and the value of such shares and
shall deliver such shares to the Agent, and the Agent shall determine the
number of such shares to be credited to the Accounts of Participants, shall
so credit such shares and shall advise the Trustee that it has so credited
such shares.
5.4 Transfers Among Funds. A Participant may, by Notice to the Committee
given at least five business days in advance of any Valuation Date, direct the
Trustee to convert all or any part of his interest in any one or more Funds into
an interest equivalent in value in one or more other Funds; provided, however,
that any transfer involving the Tri-Continental Fund shall be made as soon as
practicable following receipt of such notice. Except as provided in
<PAGE>
Sections 5.6 and 7.4, such direction to the Trustee to convert may be given at
any time but not more than once during any calendar quarter.
5.5 Reinvestment of Income and Gains. Income and gains from investments in
each Fund will be reinvested by the Trustee in the same Fund.
5.6 Limitation on Investments in a Fund. Anything herein to the contrary
notwithstanding, the Committee shall not permit the investment or reinvestment
of moneys in any Fund if to do so would result in the Trustee's holdings of
securities in such Fund to exceed 5% of the total number of such securities then
outstanding. It shall be the responsibility of the Committee and not the Trustee
to ensure that such limit is not exceeded. Whenever it shall appear to any
Employer that the Trustee could not, by reason of the preceding sentence, be
able to invest the contributions to be made to any Fund in the next succeeding
pay period, or to make a transfer permitted by Section 5.4, each Participant who
shall have directed the investment of contributions in such Fund or the transfer
of all or any part of his Account to such Fund shall be notified by the
Committee and shall change his direction with respect to the investment of
future contributions in such Fund, or shall withdraw or change his direction to
transfer all or any part of his interest to such Fund. A change of direction
pursuant to this Section 5.6 shall not in itself disqualify a Participant from
again changing his investment direction in the same quarter.
<PAGE>
ARTICLE VI
Vesting
6.1 Certain Participants Hired Before May 31, 1993. Each Participant
employed by the Corporation or an Affiliate before May 31, 1993, who elects to
have Salary Reduction Contributions made on his behalf and/or to make Voluntary
Contributions by May 31, 1993, or when first eligible, if later, shall at all
times have a fully vested and nonforfeitable interest in his Accounts.
6.2 Other Participants. (a) Except as provided in this Section 6.2, the
interest of any Participant not described in Section 6.1 in the portion of his
Accounts attributable to Matching Contributions shall be vested in accordance
with the following schedule:
Months of Participation Vested Percentage
At least 12 but less than 24 33-l/3%
At least 24 but less than 36 66-2/3%
At least 36 or more 100%
A Participant shall receive credit for one "month of participation" for each
calendar month for which he elects to have Salary Reduction Contributions
contributed on his behalf and/or to make Voluntary Contributions (or elects to
have similar contributions made under the Union Data Service Center Inc.
Employees' Thrift Plan) for any part of such month. However, the interest of any
Participant in the portion of his Accounts attributable to Matching
Contributions who is credited with at least five Years of Vesting Service or who
dies, incurs a Disability or attains age 65 while in the employ of the
Corporation or an Affiliate shall be fully vested and nonforfeitable. In any
event, the interest of any Participant in his Accounts attributable to Profit
Sharing Contributions, Salary Reduction Contributions, Rollover Contributions
and
<PAGE>
Voluntary Contributions shall at all times be fully vested and nonforfeitable.
(b) The unvested portion of a former Participant's Account shall be
forfeited as of the earlier of the date as of which the former Participant
received a distribution of the vested portion of his Accounts pursuant to
Article IX or he incurs five consecutive one-year Breaks in Service. If 100% of
the vested portion of his Accounts is zero, the individual shall be deemed to
have received a distribution of such amount. All such forfeited amounts, reduced
by any forfeited amounts restored to Participant's Accounts pursuant to
paragraph (c) below, shall be applied to reduce future contributions required of
participating Employers.
(c) Following his termination of Service, if a Participant receives a
distribution from his Account in an amount less than 100% of the balance in that
Account and he subsequently resumes employment with an Employer, he may repay to
the Trust Fund the full amount of his prior distribution from his Account
provided that (a) he has not incurred five one-year Breaks in Service and (b)
the repayment is made prior to five years after his resumption of employment. In
the event of such repayment, the amount of his prior distribution plus any
amounts forfeited shall be restored to his Account and upon his subsequent
termination of Service, his vested interest shall include amounts previously
forfeited. In the event such a Participant does not repay the amount of his
prior distribution, his vested interest shall be based only on contributions
made subsequent to his date of reemployment.
(d) If a Participant who has withdrawn all or a portion of his Accounts
attributable to Matching Contributions pursuant to Section 7.2, his vested
interest in his Accounts attributable to Matching Contributions shall be equal
to:
P (AB + D)- D
where P equals the vesting percentage determined under the schedule in
subparagraph (a) at the relevant time, AB equals his account balance
attributable to Matching Contributions at the relevant time and D equals the
amount of the distribution.
<PAGE>
ARTICLE VII
Withdrawals During Service
7.1 In-Service Withdrawals (Other Than For Hardship). Upon Notice to the
Committee a Participant, while he is still an Employee, shall be entitled to
withdraw in cash as of such Valuation Date, in the following order:
(a) up to the amount of his Voluntary Contributions made prior to
January 1, 1987, under the Plan (not including earnings thereon) not
previously withdrawn;
(b) up to the amount attributable to his unmatched Voluntary
Contributions (including earnings thereon) made subsequent to December 31,
1986, under the Plan not previously withdrawn;
(c) an amount, as designated by the Participant, up to the value of
the earnings on the amount referred to in (a) above;
(d) up to the amount attributable to matched Voluntary Contributions
(including earnings thereon)
<PAGE>
made on or subsequent to May 1, 1993; provided, however, that in the event
of a withdrawal of such amount, the Participant shall not be eligible to
receive a Matching Contribution until the expiration of the three-month
period immediately following the receipt of the withdrawal (although he
will be eligible to share in Profit Sharing Contributions, have Salary
Reduction Contributions contributed on his behalf and contribute Voluntary
Contributions);
(e) in the case of a Participant who has attained age 59-1/2, amounts
attributable to that portion of the Profit Sharing Contributions made on
his behalf at least two years prior to the date of withdrawal (except that
such two-year limitation shall not apply if he has been a Participant in
the Plan--including participation in a Predecessor Plan--for a continuous
period of at least five years); and
(f) up to the amount attributable to his Rollover Contributions
(including earnings thereon) under the Plan not previously withdrawn.
The minimum amount of any withdrawal by a Participant under this Section 7.1
shall be equal to the lesser of (i) 10% of the Participant's interest in the
Funds, or (ii) $1,000.
<PAGE>
7.2 Hardship Withdrawals. If a Participant has withdrawn the maximum amount
permitted under Section 7.1, the Committee, under uniform rules prescribed by
it, shall permit a withdrawal of the remaining amount allocated to his Accounts
other than (i) Profit Sharing Contributions not subject to a Cash Distribution
election, (ii) any earnings attributable to Profit Sharing Contributions that
were credited to his Accounts after December 31, 1988, or (iii) earnings
attributable to Salary Reduction Contributions. A withdrawal for hardship shall
be made from the Participant's Accounts in the following order:
(a) up to the amount attributable to unmatched Salary Reduction
Contributions and Optional Deferrals (including earnings thereon credited
to his Accounts on or prior to December 31, 1988);
(b) up to the amount of matched Salary Reduction Contributions; and
(c) up to the amount attributable to vested Matching Contributions
(including earnings thereon).
For these purposes, a withdrawal for financial hardship may be made only if
it is on account of an immediate and heavy financial need of the Participant and
is necessary to satisfy such financial need. An immediate and heavy financial
need shall be considered to exist only if it arises from one or more of the
following circumstances:
(1) medical expenses, as described in Section 213(d) of the Code,
incurred or to be incurred by his spouse, child or other dependent (as
defined in Code Section 152);
(2) costs directly related to the purchase of a principal residence,
excluding mortgage payments, for the Participant or former Participant;
<PAGE>
(3) tuition payments and educational fees for the next 12 months of
post-secondary education for the Participant, his spouse, children or other
dependents;
(4) the need to prevent eviction from, or foreclosure on the mortgage
of, the Participants principal residence; and
(5) any other financial need as may be deemed by the Internal Revenue
Service to constitute an immediate and heavy financial need.
The following conditions must be satisfied for a hardship withdrawal: (A)
the withdrawal may not exceed the amount needed to satisfy the Participant's
immediate financial need created by the hardship (including any taxes or
penalties reasonably anticipated to result from the hardship withdrawal); (B)
the Participant must have obtained all distributions (other than hardship
distributions under other plans) and all nontaxable loans under all plans
maintained by the Corporation or an Affiliate; (C) the Participant will be
suspended from having Optional Deferrals and Salary Reduction Contributions made
on his behalf and from making Voluntary Contributions under the Plan and from
making before-tax contributions or after-tax contributions under any other plan
(other than a welfare plan) maintained by the Corporation or an Affiliate until
the expiration of the 12-month period immediately following the receipt of the
withdrawal; and (D) the maximum dollar amount applicable to Optional Deferrals
and Salary Reduction Contributions for the Year immediately following the Year
in which the hardship withdrawal occurs shall be reduced by the aggregate of the
Participant's Optional Deferrals and Salary Reduction Contributions for the Year
in which the hardship withdrawal occurs.
7.3 Complete Withdrawal. In the event of a complete withdrawal, there shall
be paid in cash to the Participant an amount equal to his payroll deductions
made subsequent to the applicable Valuation Date for such withdrawal.
7.4 Payments. All withdrawals pursuant to Sections 7.1 and 7.2 shall be
made by Notice to the Committee. The Participant shall designate the Fund or
Funds from which the withdrawal is to be made. The withdrawal shall be made
promptly but in no event later than 30 days following Notice to the Committee.
Payments of such withdrawals shall be made as provided in Article X.
7.5 Rollover Contributions. Rollover Contributions shall be treated as
Profit Sharing Contributions, except that solely for the purposes of this
Article VII, amounts transferred under the terms of the Plan in existence
immediately prior to January 1, 1985, shall be treated as Voluntary
Contributions to the extent that they represent the Participant's own
contributions from an employees' trust described in Section 401(a) of the Code.
<PAGE>
ARTICLE VIII
Loans
8.1 Amount of Loans. On the request of a Participant, the Committee may, in
its sole discretion and on such terms and conditions as it shall prescribe under
uniform rules, direct the Trustee to make a loan to the Participant from the
Trust Fund. Any such loan shall be secured by 50% of the value of the
Participant's Accounts in the Plan and shall be for a minimum amount of $500.
The maximum aggregate amount of any loan outstanding with respect to a
Participant at any time shall not exceed the lesser of (i) $50,000, reduced with
respect to loans made, modified or extended after December 31, 1986, by the
excess of the highest outstanding loan balance during the one-year period
preceding the date of such loan, over the outstanding loan balance on the date
of such loan or (ii) for loans granted or renewed after October 18, 1989, 50% of
the value of such Participant's Accounts.
8.2 Payment of Loan. Upon the granting of a loan to a Participant, that
portion of the Participant's interest in his Account shall be redeemed in the
manner described in Section 10.1 and transferred to the Participant. The
Participant shall designate the Fund or Funds from which the loan is to be made.
Upon repayment of principal amounts of the loan and interest, such amounts shall
be reinvested in the same Fund or Funds as current contributions of the same
character as are used to secure the loan are invested or as the Participant
directs, if the Participant is not making current contributions.
8.3 Terms of Loan. Each loan shall be for a period of not more than five
years; provided, however, that such five-year maximum period shall not apply to
a loan used to acquire a dwelling unit used as a principal residence of the
Participant. In no event will the term of any loan exceed 10 years. Each loan
shall bear interest on the unpaid balance thereof at a rate for each successive
<PAGE>
calendar year or part thereof, beginning with the year in which the loan is
made, equal to a rate determined by the Committee; provided, however, that
effective January 1, 1990, such rate shall be equal to one percentage point
above the prime interest rate charged by J. P. Morgan & Co. Incorporated on the
date the application for the loan is received by the Committee (or its
delegatee).
8.4 Repayment of Loan. Each loan shall be repaid by whichever of the
following methods shall be requested by the Participant and agreed to by the
Committee:
(a) equal installment payments of principal and interest (although the
amount of principal and interest in each installment may vary), to be
deducted from the Participant's Compensation in each of his pay periods; or
(b) with respect to loans other than loans made, modified or extended
after December 31, 1986, payment of principal at the conclusion of the term
of the loan and annual payments of interest.
Any loan may be prepaid in full at any time by payment by the Participant of the
unpaid principal and accrued interest of such loan.
8.5 Default. If a Participant defaults on any installment payment of
principal or interest on a loan, the entire unpaid principal amount of such
loan, together with any unpaid accrued interest thereon, shall immediately
become due and payable and shall be satisfied from his interest in his Accounts
determined as of the Valuation Date next preceding the date of default;
provided, however, that no amount in the individual's Accounts will be debited
prior to his termination of employment to the extent such amounts cannot be
withdrawn pursuant to Article VII.
8.6 Termination of Service or Plan. In the absence of a default and in the
event that (a) a Participant who has a loan outstanding shall terminate Service
for any reason or (b) the Plan is terminated, the entire unpaid principal amount
of such loan, together with any unpaid interest thereon, shall become
immediately due and payable and shall be paid by payment of such amounts in cash
by or on behalf of the Participant. If such cash payment is not made, the loan
shall be satisfied as if a default had occurred.
8.7 Maximum Number of Loans. Anything in the Plan to the contrary
notwithstanding, a Participant shall not have more than one loan made pursuant
to this Article VIII outstanding at any time.
<PAGE>
ARTICLE IX
Distributions Upon Termination of Service
9.1 Termination of Service. A Participant whose Service terminates for any
reason shall receive his interest in the Funds. Such interest shall be
distributed as soon as practicable following his termination of employment;
provided, however, that if the value of the Participant's Accounts exceeds
$3,500 such distribution shall not be made prior to the Valuation Date
coinciding with or next following his 65th birthday without his consent. Subject
to Section 9.2, in the event the Participant does not consent to an immediate
distribution of his Accounts, he may elect to receive his distribution as of any
Valuation Date up to the Valuation Date coinciding with or next following his
65th birthday. Such distribution shall be made in a lump sum unless prior to his
distribution date he has elected by Notice to the Committee to receive his
interest in the Funds in annual, quarterly, or monthly installments; provided,
however, that the period over which such installments shall be paid may not
exceed the life expectancy of the Participant or the joint life expectancy of
the Participant and his Beneficiary, determined as of the date of the
Participant's benefit commencement date. The minimum amount of such installments
required to be distributed in any Year shall be determined in accordance with
Code Section 401(a)(9) and the regulations issued thereunder. To the extent any
provision of the Plan is inconsistent with such Code section or such
regulations, the Plan provisions shall be disregarded.
9.2 Deferred Distribution. Notwithstanding anything to the contrary
contained in Section 9.1, if the value of a Participant's Accounts exceeds
$3,500, and his Service terminates (a) because of Disability or (b) for any
reason other than Disability after attainment of his early retirement date as
defined in the J. & W. Seligman & Co. Incorporated Retirement Income Plan, he
may elect by Notice to the Committee to defer his distribution until any
specified date no later than April 1 of the Year following the Year in which he
attains age 70-1/2. The period of deferral may later be reduced upon his
request.
9.3 Commencement of Benefits. Notwithstanding anything herein contained to
the contrary, the distribution of a Participant's interest in the Funds shall
commence no later than the April 1 of the Year following the Year in which such
Participant attains age 70-1/2, even though he continues to be a Participant
after such date. Unless a Participant (or former Participant) elects otherwise
by Notice to the Committee, distributions to a former Participant shall be made
or installment payments shall commence not later than the 60th day after the end
of the Plan Year in which occurs the later of (i) his attainment of age 65 or
(ii) the date on which his employment with an Employer terminates.
<PAGE>
ARTICLE X
Payments of Distributions and Withdrawals
10.1 Distributions. Subject to Section 10.6, all distributions and
withdrawals shall be equal to the value of the number of shares and fractions
thereof which are withdrawn, valued as of the close of business on the Valuation
Date as of which payment is made. Payment of distributions shall be made as soon
as is reasonably practicable after the date of the event giving rise to the
distribution.
10.2 Payments. Distributions and withdrawals shall be paid in cash.
10.3 Designation of Beneficiary. A Participant may by Notice to the
Committee designate one or more Beneficiaries to receive his interest on his
death. Such a designation may be changed or revoked from time to time by Notice
to the Committee and the last designation received by
<PAGE>
the Committee shall be controlling. However, a change or revocation shall not be
effective prior to its receipt by the Committee prior to the Participant's
death. The Beneficiary of a married Participant shall be his surviving spouse,
unless such spouse consents to the designation of someone else as Beneficiary in
a document filed with the Committee that acknowledges the effect of such
election and is witnessed by a notary public or a Plan representative. Such
consent shall not be required if it is established to the satisfaction of the
Committee that the consent cannot be obtained because there is no surviving
spouse, the spouse cannot be located or because of such other circumstances as
may be prescribed in regulations issued by the Secretary of the Treasury. In the
event that a Participant dies without a surviving spouse and without having in
effect at the time of his death a designation of a Beneficiary made as
aforesaid, the Beneficiary shall be, in the following order of priority, his (a)
child or children, per stirpes, (b) parents in equal shares or (c) estate.
10.4 Death Benefits. Upon the death of a Participant, his Account shall be
paid to his Beneficiary in a lump sum. If there is doubt as to the right of any
Beneficiary to receive any amount, the Trustee may either retain such amount
until the rights thereto are determined or pay such amount into any court of
appropriate jurisdiction with no further liability to anyone.
10.5 Payments to Minors or Other Persons Under a Disability. If any person
to whom benefits are otherwise payable is under the age of 18 or is, in the
opinion of the Committee, not able to care for his affairs because of physical
or mental disability, the Committee may, in its sole discretion, direct the
benefits otherwise payable to such person to be made to a third person who, in
the opinion of the Committee, may be expected to apply the payments for the
benefit of the minor or disabled person, without any responsibility on the part
of the Committee or the Trustee in respect of the application of such payments.
Payments so made shall operate as a complete discharge of any and all
<PAGE>
obligations of the Committee, the Trustee and the Trust Fund.
10.6 Dividends or Capital Gain Distributions. Anything in the Plan to the
contrary notwithstanding, in the event of the intended distribution or
withdrawal of the total interest of a Participant in any Fund during the period
between (a) the record date for payment of any dividend or capital gains
distribution declared in respect of shares of such Fund and (b) the date
additional shares shall have been credited to such Participant on account of
such dividend or capital gains distribution, then one share of such Participant
shall remain in such Fund, unless such retention in such Fund would prevent the
Participant from receiving a "lump-sum distribution" within the meaning of
Section 402 of the Code.
10.7 Predecessor Plan. Amounts transferred to the Trust Fund by a
participant or former participant in a Predecessor Plan and not otherwise
payable under this Plan shall be distributed in accordance with the applicable
provisions of such Predecessor Plan.
10.8 Direct Rollovers. Effective for distributions equal to or more than
$200 made on or after January 1, 1993, notwithstanding anything contained in the
Plan to the contrary, a distributee, as defined below, may elect, in accordance
with procedures established by the Committee, to have all or any portion of an
eligible rollover distribution (as defined in Code Section 402(c)(4)) paid
directly into an individual retirement account, individual retirement annuity or
a qualified trust in a direct rollover, provided that in the case of a qualified
trust, the terms of the related plan permit the acceptance of such distributions
and the eligible distributee is not the Participant's surviving spouse.
A distributee includes a Participant, former Participant, the surviving
spouse of a Participant or former Participant or an alternate payee under a
qualified domestic relations order who is the spouse or former spouse of the
Participant or former Participant.
<PAGE>
ARTICLE XI
The Trust Fund
11.1 Trust Fund. The Trust Fund shall be held, invested, reinvested, used
and disbursed by the Trustee in accordance with the directions of the
Participants which shall be in accordance with the provisions of the Plan and
the Trust Agreement. Subject to the provisions of the Act, no person shall have
any interest in, or right to, the Trust Fund or any part thereof, except as
expressly provided in the Plan or the Trust Agreement.
11.2 Trustee. The Board may remove the Trustee at any time upon the notice
required by the provisions of the Trust Agreement, and if the Trustee resigns or
is so removed, the Board shall designate a successor trustee.
11.3 Prohibition Against Diversion. Except as provided in this Section
11.3, no part of the assets of the Trust Fund shall, by reason of any
modification, amendment, termination or otherwise, be used for or diverted to
purposes other than for the exclusive benefit of Participants and their
Beneficiaries. Any contribution made by an Employer under a mistake of fact may
be returned to the Employer within one year after the payment of the
contribution. All contributions are conditioned on their deductibility and to
the extent any deduction is disallowed, the contribution may be returned to the
Employer within one year after the disallowance of the deduction. Both such
returned contributions shall be reduced by Trust Fund losses attributable
thereto but shall not be increased by Trust Fund gains attributable thereto.
11.4 Recordkeeping. Interests in the Funds may, pursuant to directions of
the Trustee, be maintained by the Agent in book credit form. Interest in the
Funds may be registered in the name of the Trustee or its nominee or held in
such other form as will pass by delivery.
11.5 Expenses. Brokerage commissions and transfer taxes incurred in
connection with the purchase or sale of securities shall be added to the cost
thereof or deducted from the proceeds thereof, as the case may be. All other
costs and expenses, including administrative expenses, of the Plan shall be paid
by the Employers in proportion to the value of the assets held by the Trustee
attributable to Participants employed by each Employer if not paid out of the
Trust Fund.
11.6 Voting. Each Participant shall be entitled to instruct the Trustee as
to the manner in which the securities in the Funds represented by shares
credited to his Account in the Funds are to be voted. The Trustee, either itself
or by such proxy as it may select, shall vote the securities in accordance with
such instructions, if any, or in the absence of such instructions, in accordance
with the instructions of the Committee. If no such instructions are received
from the Committee, the shares shall not be voted.
<PAGE>
ARTICLE XII
Valuation of Interests and Statements of Accounts
12.1 Valuation. The value of a Participant's interest in each Fund as of
any Valuation Date shall be determined by multiplying the number of shares or
units (carried to three decimal places) to his credit in such Fund on such Date
by the value of a share or unit in such Fund at the close of business on such
Date.
12.2 Changes in Valuation. In the event a Participant's interest in a Fund
is increased by a contribution or reduced by a distribution or withdrawal on a
Valuation Date, the number of shares or units to his credit in such Fund shall
be increased or reduced, as the case may be, on the basis of the value of a
share or unit in such Fund on the close of business on such Date. All
calculations for a Valuation Date shall be made as soon as practicable after
such Date.
12.3 Statement of Account. As soon as practicable after the end of each
Year, the Committee shall deliver to each Participant a statement setting forth
his interest in the Funds as of the last day of such Year. At the time of any
distribution or withdrawal of a Participant's interest in the Funds, the
Committee shall deliver to the person receiving the payment a statement showing
how the amount of the payment was computed. To the extent permitted by law, any
statement given by the Committee pursuant to this Section 12.3 shall be deemed
correct unless Notice to the Committee is given to the contrary within 90 days
after delivery of the statement.
<PAGE>
ARTICLE XIII
Administration
13.1 Appointment of Committee. The Plan shall be administered by a
Committee consisting of three or more Employees who shall be appointed or
removed from time to time with the approval of the boards of directors of each
of the Employers. A Participant may be a member of the Committee. No member of
the Committee shall receive compensation for his services as such. The Committee
shall report to the Employers annually and at such other times as they may
request.
13.2 Powers of the Committee. The Committee shall have all powers necessary
to administer the Plan except to the extent that any such powers are vested in
any other person by the Plan or the Committee. The Committee may from time to
time establish rules for the administration of the Plan, and it shall have the
exclusive right to interpret the Plan and to decide any matters arising in
connection with the administration and operation of the Plan. All its rules,
interpretations and decisions shall be applied in a uniform manner to all
persons similarly situated, and shall be conclusive and binding on the Employers
and on Participants and their Beneficiaries to the extent permitted by law.
13.3 Procedures of the Committee. A majority of the members of the
Committee at the time in office shall constitute a quorum for the transaction of
business. All resolutions or other action taken by the Committee shall be by
vote of a majority of its members present at any meeting or, without a meeting,
by an instrument in writing signed by all its members.
13.4 Delegation of Duties. The members of the Committee shall elect one of
their number as chairman, and shall elect a secretary who may, but need not, be
one of their number. The Committee may allocate any of its powers or duties
among its members or designate others to carry out any of its powers or duties.
It may authorize one or more of its members to execute or deliver any instrument
or to make any payment on its behalf. It may employ such counsel and agents and
require such clerical, medical, accounting and actuarial services as it may
require to carry out the provisions of the Plan, and to the extent permitted by
law it shall be entitled to rely upon all tables, valuations, certificates,
opinions or other reports furnished by such persons.
13.5 Payment of Expenses. All expenses that arise in connection with the
administration of the Plan and the Trust Agreement shall be paid by the
Employers if not paid out of the Trust Fund in accordance with Section 11.5.
13.6 Duties and Responsibilities of the Committee. (a) Every person who has
any responsibilities with respect to the Plan shall discharge such
<PAGE>
responsibilities solely in the interest of the Participants and their
Beneficiaries, for the exclusive purpose of providing benefits to such persons
and defraying reasonable expenses of administering the Plan, and with the care,
skill, prudence and diligence under the circumstances then prevailing that a
prudent man acting in a like capacity and familiar with such matters would use
in the conduct of an enterprise of like character and with like aims.
(b) The members of the Board, the members of the Committee and any
person the Committee may designate to carry out any of its duties under the
Plan may employ persons to render advice with regard to any responsibility
they may have under the Plan.
(c) No person shall be liable for any of his own acts or omissions
with respect to the Plan, or for the acts or omissions of any other person
with respect to the Plan, except to the extent required by the Act.
(d) Any person or group of persons may serve in more than one
fiduciary capacity under the Plan.
13.7 Indemnification. The Employers shall indemnify each member of the
Committee against all liabilities and expenses, including attorneys' fees,
reasonably incurred by him in connection with any actual or threatened legal
action to which he is or might be a party by reason of his membership on the
Committee, except with respect to any matters as to which he shall be adjudged
to be liable for gross negligence or willful misconduct in the performance of
his duty as such a member.
<PAGE>
ARTICLE XIV
Claims Procedure
All claims for benefits under the Plan by a Participant or Beneficiary shall be
made in writing to a person designated by the Committee for such purpose. If the
designated person receiving a claim for benefits believes that the claim should
be denied, he shall notify the claimant in writing of the denial of the claim
within 90 days (180 days, if the claimant is notified within the initial 90 day
period that an extension is necessary) after his receipt thereof. Such notice
shall (a) set forth the specific reason or reasons for the denial, making
reference to the pertinent provisions of the Plan or the Plan documents on which
the denial is based, (b) describe any additional material or information that
should be received before the claim request may be acted upon favorably, and
explain why such material or information, if any, is needed and (c) inform the
person making the claim of his right pursuant to this Article XIV to request
review of the decision by the Committee. Any such person who believes that he
has submitted all available and relevant information may appeal the denial of a
claim to the Committee by submitting a written request for review to the
Committee within 60 days after the date on which such denial is received. Such
period may be extended by the Committee for good cause shown. The person making
the request for review may examine pertinent Plan documents. The request for
review may discuss any issues relevant to the claim. The Committee shall decide
whether or not to grant the claim within 60 days after receipt of the request
for review, but this period may be extended by the Committee for up to an
additional 60 days in special circumstances. If such an extension of time for
review is required because of special circumstances, written notice of the
extension shall be furnished to the claimant prior to the commencement of the
extension. The Committee's decision shall be in writing, shall include specific
reasons for the decision and shall refer to pertinent provisions of the Plan or
of Plan documents on which the decision is based.
<PAGE>
ARTICLE XV
Amendment or Termination of the Plan or
Discontinuance of Employer Contributions
15.1 Amendment. The Corporation (for itself and the other Employers) may at
any time amend the Plan by action of the Board, but no such amendment shall have
the effect of revesting in any Employer any part of the Trust Fund or of
diverting the Trust Fund to purposes other than for the exclusive benefit of
Participants and their Beneficiaries or of reducing the interest in the Trust
Fund of Participants and their Beneficiaries at the date of such amendment.
15.2 Termination. The Employers expect to continue the Plan indefinitely,
but the continuance of the Plan and the payment of Employer Contributions for
any Year are not contractual obligations. The Corporation reserves the right, by
action of the Board, to terminate the Plan or to discontinue contributions
thereunder. On the complete discontinuance of Employer Contributions or on the
total or partial termination of the Plan, the interest of each affected
Participant shall become immediately fully vested and nonforfeitable and shall
become payable as of the Valuation Date coinciding with or next following the
date of such discontinuance or termination.
15.3 Merger, Consolidation or Transfer of Assets or Liabilities. In the
event of any merger or consolidation of the Plan with, or transfer of assets or
liabilities of the Plan to, any other plan, each Participant shall (if such
other plan then terminates) be entitled to receive a benefit immediately after
such merger, consolidation or transfer which is equal to or greater than the
benefit he would have been entitled to receive immediately before such merger,
consolidation or transfer (if the Plan had then terminated).
15.4 Withdrawal of Employer. Anything in the Plan to the contrary
notwithstanding, if at any time a corporation which is an Employer hereunder
shall cease to be an Employer, the Trustee shall determine that portion of the
Trust Fund which is applicable to any employees of such corporation who were
Participants and shall pay such portion to, or for the benefit of, such
employees or apply such portion by payment thereof to the trustee of any profit
sharing or similar plan of such corporation (or any successor thereto) or
otherwise, all as such corporation shall direct.
<PAGE>
ARTICLE XVI
General Provisions
16.1 Plan Is Not a Contract of Employment. The Plan shall not be deemed to
constitute a contract between any Employer and any Employee or to be a
consideration for, or an inducement for, the employment of any Employee by an
Employer. Nothing contained in the Plan shall be deemed to give any Employee the
right to be retained in the employ of an Employer or to interfere with the right
of an Employer to discharge or to terminate the employment of any Employee at
any time without regard to the effect that such discharge or termination may
have on any rights under the Plan.
16.2 Plan Is for the Exclusive Benefit of Beneficiaries. Anything in the
Plan to the contrary notwithstanding, no part of the property of the Trust Fund
shall, by reason of any modification, amendment or termination, or otherwise, be
used for or diverted to purposes other than for the exclusive benefit of
Participants and their Beneficiaries.
16.3 Nonalienation of Benefits. Except as may be required to comply with a
qualified domestic relations order under Section 414(p) of the Code, any benefit
payable under the Plan shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, lien or charge, and
any attempt to cause any such benefit to be so subjected shall not be recognized
except to such extent as may be required by law.
16.4 Applicable Law. The Plan shall be construed and its provisions
enforced and administered in accordance with the laws of the State of New York
except as any of such laws may be superseded by the Act. Anything in the Plan or
any amendment thereof to the contrary notwithstanding, no provision of the Plan
shall be so construed as to violate the requirements of the Act or the
requirements of the Code necessary for qualification of the Plan under Section
401(a) thereof.
<PAGE>
EXHIBIT A
Top-Heavy Provisions
Effective January 1, 1984, the following special provisions shall apply to
determine if the Plan is a Top Heavy Plan in accordance with Section 416 of the
Code and any special rules that will apply based on such status. In the event
that the provisions contained in this Exhibit A are inconsistent with the terms
contained in the remainder of the Plan, the provisions contained in this Exhibit
A shall take precedence.
ARTICLE I
Definitions
Aggregation Group: All plans maintained by the Corporation
or an Affiliate that are qualified under
the Code, provided that each such plan
satisfies at least one of the following
requirements:
(a) one or more Key Employees are
participants;
(b) the plan enables any plan in
which a Key Employee is a participant to
comply with the coverage and
nondiscrimination requirements of
Sections 401(a)(4) and 410 of the Code;
or
(c) such plan has been designated
as part of the Aggregation Group,
provided that the resulting Aggregation
Group meets the coverage and
nondiscrimination requirements of
Sections 401(a)(4) and 410 of the Code.
<PAGE>
Determination Date: With respect to any Year, the last day
of the preceding Year.
Key Employee: With respect to any Year, an employee or
former employee of the Corporation or an
Affiliate (or beneficiary of such
individual) who is a key employee
determined in accordance with Section
416 of the Code and any regulations
issued thereunder. The determination as
to whether an individual is a Key
Employee shall be based, where
applicable, on a Participant's annual
total pay as described in Code Section
414(q)(7).
Non-Key Employee: With respect to any Year, a Participant
who is not a Key Employee.
Top-Heavy Plan: With respect to any Year, the Plan, if
it is included in the Aggregation Group,
and as of the Determination Date for
such Year, the sum of:
(a) the taggregate Accounts for all
Key Employees under the Plan; and
(b) the aggregate account values
and the aggregate present values of
accrued benefits (excluding amounts
attributable to rollover contributions)
for all Key Employees under all other
plans in the Aggregation Group, exceeds
60% of all such aggregate values for all
individuals under all plans in the
Aggregation Group. In determining the
value of any individual's account or the
present value of his accrued benefits:
(1) the value of such account or
the present value of such accrued
benefits shall be increased by the sum
of the distributions made with respect
to such individual from such plan during
the five-year period ending on the
Determination Date; and
(2) the present value of his
accrued benefits under a defined benefit
plan shall be determined by using a five
percent interest rate assumption and the
mortality table used to determine a
benefit that is the actuarial equivalent
of another benefit under such plan.
Effective January 1, 1985, the value of
an individual's account or the present
value of his accrued benefits shall not
be considered in determining if the Plan
is a Top-Heavy Plan if the individual
has not performed any services for an
Employer at any time within the
five-year period ending on the
Determination Date.
Effective January 1, 1987, the
accrued benefit of a Non-Key Employee
shall be determined under the method
that is used for accrual purposes under
all plans in the Aggregation Group, or
if there is no such method, as if such
benefit accrued not more rapidly than
the slowest accrual rate determined
under Section 411(b)(1)(C) of the Code.
Top-Heavy Year: A year in which the Plan is a Top-Heavy
Plan.
<PAGE>
ARTICLE II
Minimum Allocation
Each Participant who on the last day of any Top-Heavy Year (a) is a Non-Key
Employee and (b) does not participate in a defined benefit plan maintained by
the Corporation or an Affiliate that provides that the minimum benefit
requirements applicable to top-heavy plans will be satisfied in such other plan
shall receive a minimum allocation of aggregate Employer Contributions
(excluding Optional Deferrals and Salary Reduction Contributions) for such Year
equal to a percentage of his total pay (as described in Treasury Regulation
Section 1.415-2(d)) up to $150,000 (as adjusted by the Secretary of the Treasury
to reflect increases in the cost of living) received in such Year. Such
percentage shall be equal to the lesser of three percent or the highest
percentage at which Employer Contributions (including Optional Deferrals and
Salary Reduction Contributions) are allocated to the Accounts of any Key
Employee for such Year (when expressed as a percentage of such Key Employee's
total pay up to $150,000, as adjusted). To the extent necessary to provide this
minimum allocation, the allocations to the Accounts of Key Employees shall be
reduced proportionately.
ARTICLE III
Dual Plan Limit
For any Top-Heavy Year, the denominator of the "defined contribution plan
fraction" and the "defined benefit plan fraction" (as determined under Section
415(e) of the Code and the regulations promulgated thereunder) shall be
calculated by using a factor of 1.0 rather than 1.25.
DEFERRED COMPENSATION PLAN FOR DIRECTORS
OF EACH OF:
Seligman Capital Fund, Inc. Seligman International Fund Series, Inc.
Seligman Cash Management Fund, Inc. Seligman Mutual Benefit Portfolios, Inc.
Seligman Common Stock Fund, Inc. Seligman New Jersey Tax-Exempt Fund, Inc.
Seligman Communications & Seligman Pennsylvania Tax-Exempt Fund Series
Information Fund, Inc. Seligman Quality Municipal Fund, Inc.
Seligman Frontier Fund, Inc. Seligman Select Municipal Fund, Inc.
Seligman Growth Fund, Inc. Seligman Tax-Exempt Fund Series, Inc.
Seligman High Income Fund Series Tri-Continental Corporation
Seligman Income Fund,Inc.
1. Election to Defer Payments. Any member of the Board of Directors/Trustees
of the Fund/Series may elect to have payment of the director's/trustees'
annual retainer or meeting fees or both for Board service deferred as
provided in this Plan. The election shall be made in writing prior to, and
to take effect from, the beginning of a calendar year, or for any
director/trustee in the year in which this Plan is adopted or for a person
elected a director/trustee in other than the last calendar quarter of a
year, prior to, and to take effect from, the beginning of the calendar
quarter next ensuing after that event. Elections shall continue in effect
until terminated in writing, any such termination to take effect on the
first day of the calendar year beginning after receipt of the notice of
termination. An election shall be irrevocable as to payments deferred in
conformity with that election.
2. Deferred Payment Account. Each deferred retainer or fee shall be credited
at the time when it otherwise would have been payable to an account to be
established in the name of the director/trustee on the books of the
Fund/Series. All amounts in such account, including interest credited
thereto, shall bear interest at a rate equivalent to the rate of return
earned on 90-day Treasury Bills in each calendar quarter. Such interest
shall be credited to the account quarterly at the end of each calendar
quarter. Amounts in the account shall not be evidenced by any note or other
security, funded or secured in any way.
3. Payment of Deferred Amounts. All amounts credited to an account pursuant to
any election by the director/trustee made as provided in (1) above shall be
paid to the director/trustee.
(a) in, or beginning in, the calendar year following the calendar
year in which the director/trustee ceases to be a
director/trustee of the Fund/Series, or
(b) in, or beginning in, the calendar year following the earlier of
the calendar year in which the director/trustee ceases to be a
director/trustee of the Fund/Series or attains age 70, and shall
be paid
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(c) in a lump sum payable on the first day of the calendar year in
which payment is to be made, or
(d) in 10 or fewer installments, payable on the first day of each
year commencing with the calendar year in which payment is to
begin,
all as the director/trustee shall specify in making the election.
If the payment is to be made in installments, the amount of each
installment shall be equal to a fraction of the total of the
amounts in the account at the date of the payment, the numerator of
which shall be one and the denominator of which shall be the then
remaining number of unpaid installments (including the installment
then to be paid). If the director/trustee dies at any time before
all amounts in the account have been paid, such amounts shall be
paid at that time in a lump sum to the estate of the
director/trustee.
4. Assignment. No deferred amount or unpaid portion thereof may be assigned or
transferred by the director/trustee except by will or the laws of descent
and distribution.
5. Withholding Taxes. The Fund/Series shall deduct from all payments any
federal, state or local taxes and other charges required by law to be
withheld with respect to such payments.
6. Amendments and Acceleration. The Board of Directors/Trustees of the
Fund/Series may at any time at its sole discretion accelerate the payment
of any unpaid amount for any or all directors/trustees or terminate this
Plan, provided that no such amendment or termination shall adversely affect
the right of directors/trustees to receive deferred amounts credited to
their account.
Revised: March 19, 1992
CUSTODY AGREEMENT
THIS AGREEMENT made the___ day of____________ , 19___ , by and between
INVESTORS FIDUCIARY TRUST COMPANY, a trust company chartered under the laws of
the state of Missouri, having its trust office located at 127 West 10th Street,
Kansas City, Missouri 64105 ("Custodian"), and SELIGMAN TAX-EXEMPT FUND SERIES,
INC., a Maryland corporation, having its principal office and place of business
at One Bankers Trust Plaza, New York, New York 10006 ("Fund").
WITNESSETH:
WHEREAS, Fund desires to appoint Investors Fiduciary Trust Company as
Custodian and Recordkeeper of the securities and monies of Fund and its now
existing and future established portfolios (individually referred to herein as
Portfolio); and WHEREAS, Investors Fiduciary Trust Company is willing to accept
such appointment; NOW THEREFORE, for and in consideration of the mutual promises
contained herein, the parties hereto, intending to be legally bound, mutually
covenant and agree as follows:
1. APPOINTMENT OF CUSTODIAN. Fund hereby constitutes and appoints Custodian as
custodian of the Fund which is to include:
A. Appointment as custodian of the securities and monies at any time
owned by each Portfolio of the Fund; and
B. Appointment as agent to perform certain accounting and recordkeeping
functions required of a duly registered investment company in
compliance with applicable provisions of federal, state, and local
laws, rules and regulations including, as may be required:
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1. Providing information necessary for Fund and each Portfolio to
file required financial reports; maintaining and preserving
required books, accounts and records as the basis for such
reports; and performing certain daily functions in connection
with such accounts and records, and
2. Calculating daily net asset value of each Portfolio of the Fund,
and
3. Acting as liaison with independent auditors.
2. DELIVERY OF CORPORATE DOCUMENTS. Fund has delivered or will deliver to
Custodian prior to the effective date of this Agreement, copies of the
following documents and all amendments or supplements thereto, properly
certified or authenticated:
A. Resolutions of the Board of Directors of Fund appointing Custodian as
custodian hereunder and approving the form of this Agreement; and
B. Resolutions of the Board of Directors of Fund designating certain
persons to give instructions on behalf of Fund to Custodian and
authorizing Custodian to rely upon such instructions.
3. DUTIES AND RESPONSIBILITIES OF CUSTODIAN.
A. Delivery of Assets
Fund will deliver or cause to be delivered to Custodian on the
effective date of this Agreement, or as soon thereafter as
practicable, and from time to time thereafter, all portfolio
securities acquired by it and monies then owned by it (except as
permitted by the Investment Company Act of 1940) or from time to time
coming into its possession during the time this Agreement shall
continue in effect. Custodian shall have no responsibility or
liability whatsoever for or on account of securities or monies not so
delivered. All securities so delivered to Custodian (other than bearer
securities) shall be registered in the
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name of Fund or its nominee, or of a nominee of Custodian, or shall be
properly endorsed and in form for transfer satisfactory to Custodian.
B. Delivery of Accounts and Records
Fund shall turn over to Custodian all of the Fund's relevant accounts
and records previously maintained by it. Custodian shall be entitled
to rely conclusively on the completeness and correctness of the
accounts and records turned over to it by Fund, and Fund shall
indemnify and hold Custodian harmless of and from any and all
expenses, damages and losses whatsoever arising out of or in
connection with any error, omission, inaccuracy or other deficiency of
such accounts and records or in the failure of Fund to provide any
portion of such or to provide any information needed by the Custodian
knowledgeably to perform its function hereunder.
C. Delivery of Assets to Third Parties
Custodian will receive delivery of and keep safely the assets of Fund
delivered to it from time to time and the assets of each Portfolio
segregated in a separate account. Custodian will not deliver, assign,
pledge or hypothecate any such assets to any person except as
permitted by the provisions of this Agreement or any agreement
executed by it according to the terms of section 3.S. of this
Agreement. Upon delivery of any such assets to a subcustodian pursuant
to Section 3.S. of this agreement, Custodian will create and maintain
records identifying those assets which have been delivered to the
subcustodian as belonging to the applicable Portfolio of the Fund. The
Custodian is responsible for the safekeeping of the securities and
monies of Fund only until they have been transmitted to and received
by other persons as permitted under the terms of this Agreement,
except for securities and monies transmitted to United Missouri Bank
of Kansas City, N.A. (UMBKC) and United Missouri
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Trust Company of New York (UMBTC) for which Custodian remains
responsible. Custodian shall be responsible only for the monies and
securities of Fund held by it or its nominees, UMBKC or its nominees,
and eligible foreign subcustodians to the extent the domestic
custodian with which the Custodian contracts is responsible to
Custodian. Custodian may participate directly or indirectly through a
subcustodian in the Depository Trust Company, Treasury/Federal Reserve
Book Entry System, Participant Trust Company or other depository
approved by the Fund (as such entities are defined at 17 CFR Section
270.17f-4(b)).
D. Registration of Securities
Custodian will hold stocks and other registerable portfolio securities
of Fund registered in the name of Fund or its nominee or in the name
of any nominee of Custodian for whose fidelity and liability Custodian
will be fully responsible, or in street certificate form, so-called,
with or without any indication of fiduciary capacity. Unless otherwise
instructed, Custodian will register all such portfolio securities in
the name of its authorized nominee, as defined in the Internal Revenue
Code and any Regulations of the Treasury Department issued thereunder
or in any provision of any subsequent Federal tax law exempting such
transaction from liability for stock transfer taxes. All securities,
and the ownership thereof by a Portfolio of the Fund, which are held
by Custodian hereunder, however, shall at all times be identifiable on
the records of the Custodian. The Fund agrees to hold Custodian and
its nominee harmless for any liability as a record holder of
securities held in custody.
E. Exchange of Securities
Upon receipt of instructions as defined herein in Section 4.A,
Custodian will exchange, or cause to be exchanged, portfolio
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securities held by it for the account of the applicable Portfolio of
the Fund for other securities or cash issued or paid in connection
with any reorganization, recapitalization, merger, consolidation,
split-up of shares, change of par value, conversion or otherwise, and
will deposit any such securities in accordance with the terms of any
reorganization or protective plan. Without instructions, Custodian is
authorized to exchange securities held by it in temporary form for
securities in definitive form, to effect an exchange of shares when
the par value of the stock is changed, and, upon receiving payment
therefor, to surrender bonds or other securities held by it at
maturity or when advised of an earlier mandatory call for redemption,
except that Custodian shall receive instructions prior to surrendering
any convertible security. Pursuant to this paragraph, the Custodian
will inform the Fund of such corporate actions and capital changes
when it is informed of them through the publications it subscribes to.
F. Purchases of Investments of the Fund
Fund will, on each business day on which a purchase of securities
shall be made by it, deliver to Custodian instructions which shall
specify with respect to each such purchase:
1. The name of the Portfolio making such purchase;
2. The name of the issuer and description of the security;
3. The number of shares or the principal amount purchased, and
accrued interest, if any;
4. The trade date;
5. The settlement date;
6. The purchase price per unit and the brokerage commission, taxes
and other expenses payable in connection with the purchase;
7. The total amount payable upon such purchase; and
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8. The name of the person from whom or the broker or dealer through
whom the purchase was made.
In accordance with such instructions, Custodian will pay for out of
monies held for the account of such named Portfolio, but only insofar
as monies are available therein for such purpose, and receive the
portfolio securities so purchased by such named Portfolio, except that
Custodian may in its sole discretion advance funds to the Fund which
may result in an overdraft because the monies held by the Custodian on
behalf of the Fund are insufficient to pay the total amount payable
upon such purchase. Such payment will be made only upon receipt by
Custodian of the securities so purchased in form for transfer
satisfactory to Custodian. Custodian agrees to promptly inform Fund of
any failures by sellers to make proper deliveries of securities
purchased by the Fund.
G. Sales and Deliveries of Investments of the Fund - Other than Options
and Futures
Fund will, on each business day on which a sale of investment
securities of Fund has been made, deliver to Custodian instructions
specifying with respect to each such sale:
1. The name of the Portfolio making such sale;
2. The name of the issuer and description of the securities;
3. The number of shares or principal amount sold, and accrued
interest, if any;
4. The date on which the securities sold were purchased or other
information identifying the securities sold and to be delivered;
5. The trade date;
6. The settlement date;
7. The sale price per unit and the brokerage commission, taxes or
other expenses payable in connection with such sale;
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8. The total amount to be received by Fund upon such sale; and
9. The name and address of the broker or dealer through whom or
person to whom the sale was made.
In accordance with such instructions, Custodian will deliver or cause
to be delivered the securities thus designated as sold for the account
of such Portfolio to the broker or other person specified in the
instructions relating to such sale, such delivery to be made only upon
receipt of payment therefor in such form as is satisfactory to
Custodian, with the understanding that Custodian may deliver or cause
to be delivered securities for payment in accordance with the customs
prevailing among dealers in securities. Custodian agrees to promptly
inform Fund of any failures of purchasers to make proper payment for
securities sold by Fund.
H. Purchases or Sales of Security Options, Options on Indices and
Security Index Futures Contracts Fund will, on each business day on
which a purchase or sale of the following options and/or futures shall
be made by it, deliver to Custodian instructions which shall specify
with respect to each such purchase or sale:
1. The name of the Portfolio making such purchase or sale;
2. Security Options
a. The underlying security;
b. The price at which purchased or sold;
c. The expiration date;
d. The number of contracts;
e. The exercise price;
f. Whether the transaction is an opening, exercising, expiring
or closing transaction;
g. Whether the transaction involves a put or call;
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<PAGE>
h. Whether the option is written or purchased;
i. Market on which option traded;
j. Name and address of the broker or dealer through whom the
sale or purchase was made.
3. Options on Indices
a. The index;
b. The price at which purchased or sold;
c. The exercise price;
d. The premium;
e. The multiple;
f. The expiration date;
g. Whether the transaction is an opening, exercising, expiring
or closing transaction;
h. Whether the transaction involves a put or call;
i. Whether the option is written or purchased;
j. The name and address of the broker or dealer through whom
the sale or purchase was made, or other applicable
settlement instructions.
4. Security Index Futures Contracts
a. The last trading date specified in the contract and, when
available, the closing level, thereof;
b. The index level on the date the contract is entered into
c. The multiple;
d. Any margin requirements;
e. The need for a segregated margin account (in addition to
instructions, and if not already in the possession of
Custodian, Fund shall deliver a substantially complete and
executed custodial safekeeping account and
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procedural agreement which shall be incorporated by
reference into this Custody Agreement); and
f. The name and address of the futures commission merchant
through whom the sale or purchase was made, or other
applicable settlement instructions.
5. Option on Index Future Contracts
a. The underlying index futures contract;
b. The premium;
c. The expiration date;
d. The number of options;
e. The exercise price;
f. Whether the transaction involves an opening, exercising,
expiring or closing transaction;
g. Whether the transaction involves a put or call;
h. Whether the option is written or purchased; and
i. The market on which the option is traded.
I. Securities Pledged or Loaned
If specifically allowed for in the prospectus of the applicable
Portfolio of the Fund:
1. Upon receipt of instructions, Custodian will release or cause to
be released securities held in custody to the pledgee designated
in such instructions by way of pledge or hypothecation to secure
any loan incurred by a Portfolio of the Fund; provided, however,
that the securities shall be released only upon payment to
Custodian of the monies borrowed, except that in cases where
additional collateral is required to secure a borrowing already
made, further securities may be released or caused to be released
for that purpose upon receipt of instructions. Upon receipt of
instructions, Custodian
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will pay, but only from funds available for such purpose, any
such loan upon redelivery to it of the securities pledged or
hypothecated therefor and upon surrender of the note or notes
evidencing such loan.
2. Upon receipt of instructions, Custodian will release securities
held in custody to the borrower designated in such instructions;
provided, however, that the securities will be released only upon
deposit with Custodian of full cash collateral as specified in
such instructions, and that Fund will retain the right to any
dividends, interest or distribution on such loaned securities.
Upon receipt of instructions and the loaned securities, Custodian
will release the cash collateral to the borrower.
J. Routine Matters
Custodian will, in general, attend to all routine and mechanical
matters in connection with the sale, exchange, substitution, purchase,
transfer, or other dealings with securities or other property of Fund
except as may be otherwise provided in this Agreement or directed from
time to time by the Board of Directors of Fund.
K. Deposit Account
Custodian will open and maintain a special purpose deposit account(s)
in the name of Custodian on behalf of each Portfolio (Accounts),
subject only to draft or order by Custodian upon receipt of
instructions. All monies received by Custodian from or for the account
of a Portfolio shall be deposited in said Accounts. Barring events not
in the control of the Custodian such as strikes, lockouts or labor
disputes, riots, war or equipment or transmission failure or damage,
fire, flood, earthquake or other natural disaster, action or
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inaction of governmental authority or other causes beyond its control,
at 9:00 a.m., Kansas City time, on the second business day after
deposit of any check into Fund's Account, Custodian agrees to make Fed
Funds available to the appropriate Portfolio of the Fund in the amount
of the check. Deposits made by Federal Reserve wire will be available
to the Fund immediately and ACH wires will be available to the Fund on
the next business day. Income earned on the portfolio securities will
be credited to the applicable Portfolio of the Fund based on the
schedule attached as Exhibit A, except that income earned on portfolio
securities held by domestic subcustodians other than UMBKC, UMBTC,
Bank of New York (previously Irving Trust Company and hereinafter
referred to as BONY) and Morgan Guaranty and Trust Company (MGT) will
be credited when received. The Custodian will be entitled to reverse
any credited amounts where credits have been made and monies are not
finally collected. If monies are collected after such reversal, the
Custodian will credit the applicable Portfolio in that amount.
Custodian may open and maintain an Account in such other banks or
trust companies as may be designated by it and by properly authorized
resolution of the Board of Directors of Fund, such Account, however,
to be in the name of Custodian on behalf of the applicable portfolio
of the Fund and subject only to its draft or order.
L. Income and other Payments to Fund
Custodian will:
1. Collect, claim and receive and deposit for the Account of each
Portfolio of the Fund all income and other payments which become
due and payable on or after the effective date of this Agreement
with respect to the securities deposited under this Agreement,
and credit the account of the applicable Portfolio
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of the Fund in accordance with the schedule attached hereto as Exhibit
A, except that income earned on portfolio securities held by domestic
subcustodians other than UMBKC, UMBTC, BONY, and MGT will be credited
when received. Income from foreign securities and assets held by
eligible foreign subcustodians shall be credited by Custodian upon
receipt of income from the domestic subcustodian contracting with the
foreign eligible subcustodians. If, for any reason, the Fund is
credited with income that is not subsequently collected, Custodian may
reverse that credited amount;
2. Execute ownership and other certificates and affidavits for all
federal, state and local tax purposes in connection with the
collection of bond and note coupons; and
3. Take such other action as may be necessary or proper in connection
with:
a. the collection, receipt and deposit o f such income and other
payments, including but not limited to the presentation for
payment of:
1. all coupons and other income items requiring presentation;
and
2. all other securities which may mature or be called,
redeemed, retired or otherwise become payable and regarding
which the Custodian has actual knowledge, or notice of which
is contained in publications of the type to which a
custodian for investment companies normally subscribes for
such purpose; and
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b. the endorsement for collection, in the name of the applicable
Portfolio of the Fund, of all checks, drafts or other negotiable
instruments.
Custodian, however, will not be required to institute suit or take
other extraordinary action to enforce collection except upon receipt
of instructions and upon being indemnified to its satisfaction against
the costs and expenses of such suit or other actions. Custodian will
receive, claim and collect all stock dividends, rights and other
similar items and will deal with the same pursuant to instructions.
Unless prior instructions have been received to the contrary,
Custodian will, without further instructions, sell any rights held for
the account of Fund on the last trade date prior to the date of
expiration of such rights.
M. Payment of Dividends and other Distributions
On the declaration of any dividend or other distribution on the shares
of Capital Stock of any Portfolio ("Portfolio Shares") by the Board of
Directors of Fund, Fund shall deliver to Custodian instructions with
respect thereto, including a copy of the Resolution of said Board of
Directors certified by the Secretary or an Assistant Secretary of Fund
wherein there shall be set forth the record date as of which
shareholders entitled to receive such dividend or other distribution
shall be determined, the date of payment of such dividend or
distribution, and the amount payable per share on such dividend or
distribution. Except if the ex-dividend date and the reinvestment date
of any dividend are the same, in which case funds shall remain in the
Custody Account, on the date specified in such Resolution for the
payment of such dividend or other distribution, Custodian will pay out
of the monies held for the account of the applicable Portfolio of the
Fund, insofar as the same shall be available for such purposes, and
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wire to the account of the Dividend Disbursing Agent for Fund, such
amount as may be necessary to pay the amount per share payable in cash
on Portfolio Shares issued and outstanding on the record date
established by such Resolution.
N. Shares of Fund Purchased by Fund
Whenever any Portfolio Shares are repurchased or redeemed by Fund,
Fund or its agent shall advise Custodian of the aggregate dollar
amount to be paid for such shares and shall confirm such advice in
writing. Upon receipt of such advice.
Custodian shall charge such aggregate dollar amount to the Account of
Portfolio and either deposit the same in the account maintained for
the purpose of paying for the repurchase or redemption of Portfolio
Shares or deliver the same in accordance with such advice.
Custodian shall not have any duty or responsibility to determine that
Fund Shares have been removed from the proper shareholder account or
accounts or that the proper number of such shares have been canceled
and removed from the shareholder records.
O. Shares of Fund Purchased from Fund
Whenever Portfolio Shares are purchased from Fund, Fund will deposit
or cause to be deposited with Custodian the amount received for such
shares. Custodian shall not have any duty or responsibility to
determine that Portfolio Shares purchased from Fund have been added to
the proper shareholder account or accounts or that the proper number
of such shares have been added to the shareholder records.
P. Proxies and Notices
Custodian will promptly deliver or mail or have delivered or mailed to
Fund all proxies properly signed, all notices of meetings, all proxy
statements and other notices, requests or announcements affecting
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or relating to securities held by Custodian for Fund and will, upon
receipt of instructions, execute and deliver or cause its nominee to
execute and deliver or mail or have delivered or mailed such proxies
or other authorizations as may be required. Except as provided by this
Agreement or pursuant to instructions hereafter received by Custodian,
neither it nor its nominee will exercise any power inherent in any
such securities, including any power to vote the same, or execute any
proxy, power of attorney, or other similar instrument voting any of
such securities, or give any consent, approval or waiver with respect
thereto, or take any other similar action.
Q. Disbursements
Custodian will pay or cause to be paid insofar as funds are available
for the purpose, bills, statements and other obligations of Fund
(including but not limited to obligations in connection with the
conversion, exchange or surrender of securities owned by Fund,
interest charges, dividend disbursements, taxes, management fees,
custodian fees, legal fees, auditors' fees, transfer agents' fees,
brokerage commissions, compensation to personnel, and other operating
expenses of Fund) pursuant to instructions of Fund setting forth the
name of the person to whom payment is to be made, the amount of the
payment, and the purpose of the payment.
R. Daily Statement of Accounts
Custodian will, within a reasonable time, render to Fund as of the
close of business on each day, a detailed statement of the amounts
received or paid and of securities received or delivered for the
account of Fund during said day. Custodian will, from time to time,
upon request by Fund, render a detailed statement of the securities
and monies held for Fund under this Agreement, and Custodian will
maintain such books and records as are necessary to enable it to do
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so and will permit such persons as are authorized by Fund including
Fund's independent public accountants, access to such records or
confirmation of the contents of such records; and if demanded, will
permit federal and state regulatory agencies to examine the
securities, books and records. Upon the written instructions of Fund
or as demanded by federal or state regulatory agencies, Custodian will
instruct any subcustodian to give such persons as are authorized by
Fund including Fund's independent public accountants, access to such
records or confirmation of the contents of such records; and if
demanded, to permit federal and state regulatory agencies to examine
the books, records and securities held by subcustodian which relate to
Fund. Fund will be entitled to receive reports produced by the
Custodian's portfolio accounting system, including without limitation,
those listed on Exhibit C hereof.
S. Appointment of Subcustodians
1. Notwithstanding any other provisions of this Agreement, all of or
any of the monies or securities of Fund may be held in
Custodian's own custody or in the custody of one or more other
banks or trust companies selected by Custodian and approved by
the Fund's Board of Directors. Any such subcustodian must have
the qualifications required for custodian under the Investment
Company Act of 1940, as amended. The subcustodian may participate
directly or indirectly in the Depository Trust Company,
Treasury/Federal Reserve Book Entry System, Participant Trust
Company or other depository approved by the Fund (as such
entities are defined at 17 CFR Sec. 270.17f-4(b)). The
appointment of UMBKC or any other subcustodian, depository or
clearing agency used by the Custodian and approved by the Fund
will not relieve Custodian
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of any of its obligations hereunder except as provided in Section
3.C hereof. The Custodian will comply with Section 17f-4 of the
Investment Company Act of 1940, as amended, as to depositories
and clearing agencies used by Custodian and approved the Fund.
The Custodian will not be entitled to reimbursement by Fund for
any fees or expenses of any subcustodian, depository or clearing
agency.
2. Notwithstanding any other provisions of this Agreement, Fund's
foreign securities (as defined in Rule 17f-5(c)(1) under the
Investment Company Act of 1940) and Fund's cash or cash
equivalents, in amounts reasonably necessary to effect Fund's
foreign securities transactions, may be held in the custody of
one or more banks or trust companies acting as subcustodians,
according to Section 3.S.1; and thereafter, pursuant to a written
contract or contracts as approved by Fund's Board of Directors,
may be transferred to an account maintained by such subcustodian
with an eligible foreign custodian, as defined in Rule
17f-5(c)(2), provided that any such arrangement involving a
foreign custodian shall be in accordance with the provisions of
Rule 17f-5 under the Investment Company Act of 1940 as that Rule
may be amended from time to time.
T. Accounts and Records
Custodian, with the direction and as interpreted by the Fund, Fund's
accountants and/or other tax advisors, will prepare and maintain as
complete, accurate and current all accounts and records required to be
maintained by Fund under the Internal Revenue Code of 1986 ("Code") as
amended and under the general Rules and Regulations under the
Investment Company Act of 1940 ("Rules") as amended,
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and as agreed upon between the parties and will preserve said records
in the manner and for the periods prescribed in said Code and Rules,
or for such longer period as is agreed upon by the parties. Custodian
relies upon Fund to furnish, in writing, accurate and timely
information to complete Fund's records and perform daily calculation
of the Fund's net asset value, as provided in Section 3.W. below.
Custodian shall incur no liability and Fund shall indemnify and hold
harmless Custodian from and against any liability arising from any
failure of Fund to furnish such information in a timely and accurate
manner, even if Fund subsequently provides accurate but untimely
information. It shall be the responsibility of Fund to furnish
Custodian with the declaration, record and payment dates and amounts
of any dividends or income and any other special actions required
concerning each of its securities when such information is not readily
available from generally accepted securities industry services or
publications.
U. Accounts and Records Property of Fund
Custodian acknowledges that all of the accounts and records maintained
by Custodian pursuant to this Agreement are the property of Fund, and
will be made available to Fund for inspection or reproduction within a
reasonable period of time, upon demand. Custodian will assist Fund's
independent auditors, or upon approval of Fund, or upon demand, any
regulatory body having jurisdiction over the Fund or Custodian, in any
requested review of Fund's accounts and records but shall be
reimbursed for all expenses and employee time invested in any such
review outside of routine and normal periodic reviews. Upon receipt
from Fund of the necessary information, Custodian will supply
necessary data for Fund's completion of any necessary tax returns,
questionnaires, periodic
18
<PAGE>
reports to Shareholders and such other reports and information
requests as Fund and Custodian shall agree upon from time to time.
19
<PAGE>
V. Adoption of Procedures
Custodian and Fund may from time to time adopt procedures as they
agree upon, and Custodian may conclusively assume that no procedure
approved by Fund, or directed by Fund, conflicts with or violates any
requirements of its prospectus, "Articles of Incorporation", Bylaws,
or any rule or regulation of any regulatory body or governmental
agency. Fund will be responsible to notify Custodian of any changes in
statutes, regulations, rules or policies which might necessitate
changes in Custodian's responsibilities or procedures.
W. Calculation of Net Asset Value
Custodian will calculate Fund's net asset value, in accordance with
Fund's prospectus, once daily. Custodian will prepare and maintain a
daily evaluation of securities for which market quotations are
available by the use of outside services normally used and contracted
for this purpose; all other securities will be evaluated in accordance
with Fund's instructions. Custodian will have no responsibility for
the accuracy of the prices quoted by these outside services or for the
information supplied by Fund or upon instructions.
X. Overdrafts
If Custodian shall in its sole discretion advance funds to the account
of the Fund which results in an overdraft because the monies held by
Custodian on behalf of the Fund are insufficient to pay the total
amount payable upon a purchase of securities as specified in Fund's
instructions or for some other reason, the amount of the overdraft
shall be payable by the Fund to Custodian upon demand and shall bear
an interest rate determined by Custodian from the date advanced until
the date of payment. Custodian shall have a lien on the assets of the
Fund in the amount of any outstanding overdraft.
20
<PAGE>
4. INSTRUCTIONS.
A. The term "instructions", as used herein, means written or
facsimile instructions or advice to Custodian from two designated
representatives of Fund. Certified copies of resolutions of the
Board of Directors of Fund naming two or more designated
representatives to give instructions in the name and on behalf of
Fund, may be received and accepted from time to time by Custodian
as conclusive evidence of the authority of any two designated
representatives to act for Fund and may be considered to be in
full force and effect (and Custodian will be fully protected in
acting in reliance thereon) until receipt by Custodian of notice
to the contrary. Unless the resolution delegating authority to
any person to give instructions specifically requires that the
approval of anyone else will first have been obtained, Custodian
will be under no obligation to inquire into the right of the
person giving such instructions to do so. Notwithstanding any of
the foregoing provisions of this Section 4. no authorizations or
instructions received by Custodian from Fund, will be deemed to
authorize or permit any director, trustee, officer, employee, or
agent of Fund to withdraw any of the securities or similar
investments of Fund upon the mere receipt of such authorization
or instructions from such director, trustee, officer, employee or
agent. Notwithstanding any other provision of this Agreement,
Custodian, upon receipt (and acknowledgement if required at the
discretion of Custodian) of the instructions of any two
designated representatives of Fund, will undertake to deliver for
Fund's account monies, (provided such monies are on hand or
available) in connection with Fund's transactions and to wire
transfer such monies to such broker, dealer, subcustodian, bank
or other agent specified in such instructions.
21
<PAGE>
B. If oral instructions are permitted pursuant to Section 4.A.
hereunder, no later than the next business day immediately
following such oral instruction the Fund will send Custodian
written confirmation of such oral instruction. At Custodian's
sole discretion, Custodian may record on tape, or otherwise, any
oral instruction whether given in person or via telephone, each
such recording identifying the parties, the date and the time of
the beginning and ending of such oral instruction.
22
<PAGE>
5. LIMITATION OF LIABILITY OF CUSTODIAN.
A. Custodian shall hold harmless and indemnify Fund from and against
any loss or liability arising out of Custodian's failure to
comply with the terms of this Agreement or arising out of
Custodian's negligence or bad faith. Custodian shall not be
liable for consequential damages. Custodian may request and
obtain the advice and opinion of counsel for Fund, or of its own
counsel with respect to questions or matters of law, and it shall
be without liability to Fund for any action taken or omitted by
it in good faith, in conformity with such advice or opinion. If
Custodian reasonably believes that it could not prudently act
according to the instructions of the Fund or the Fund's counsel,
it may in its discretion, with notice to the Fund, not act
according to such instructions.
B. Custodian may rely upon the advice of Fund and upon statements of
Fund's public accountants and other persons believed by it in
good faith, to be expert in matters upon which they are
consulted, and Custodian shall not be liable for any actions
taken, in good faith, upon such statements.
C. If Fund requires Custodian in any capacity to take, with respect
to any securities, any action which involves the payment of money
by it, or which in Custodian's opinion might make it or its
nominee liable for payment of monies or in any other way,
Custodian, upon notice to Fund given prior to such actions, shall
be and be kept indemnified by Fund in an amount and form
satisfactory to Custodian against any liability on account of
such action.
D. Custodian shall be protected in acting as custodian hereunder
upon any instructions, advice, notice, request, consent,
certificate or other instrument or paper reasonably appearing to
it to be genuine and to have been properly executed and shall,
unless otherwise specifically
23
<PAGE>
provided herein, be entitled to receive as conclusive proof of
any fact or matter required to be ascertained from Fund
hereunder, a certificate signed by the Fund's President, or other
officer specifically authorized for such purpose.
E. Without limiting the generality of the foregoing, Custodian shall
be under no duty or obligation to inquire into, and shall not be
liable for:
1. The validity of the issue of any securities purchased by or
for Fund, the legality of the purchase thereof or evidence
of ownership required by Fund to be received by Custodian,
or the propriety of the decision to purchase or amount paid
therefor;
2. The legality of the sale of any securities by or for Fund,
or the propriety of the amount for which the same are sold;
3. The legality of the issue or sale of any shares of the
Capital Stock of Fund, or the sufficiency of the amount to
be received therefor;
4. The legality of the repurchase or redemption of any Fund
Shares, or the propriety of the amount to be paid therefor;
or
5. The legality of the declaration of any dividend by Fund, or
the legality of the issue of any Fund Shares in payment of
any stock dividend.
F. Custodian shall not be liable for, or considered to be Custodian of,
any money represented by any check, draft, wire transfer, clearing
house funds, uncollected funds, or instrument for the payment of money
received by it on behalf of Fund, until Custodian actually receives
such money, provided only that it shall advise Fund promptly if it
fails to receive any such money in the ordinary course of business,
and use its best efforts and cooperate with Fund toward the end that
such money shall be received.
24
<PAGE>
G. Custodian shall not be responsible for loss occasioned by the acts,
neglects, defaults or insolvency of any broker, bank, trust company,
or any other person with whom Custodian may deal in the absence of
negligence, or bad faith on the part of Custodian, except as provided
in Section 3.S.1 hereof.
H. Notwithstanding anything herein to the contrary, Custodian may, and
with respect to any foreign subcustodian appointed under Section
3.S.2. must, provide Fund for its approval, agreements with banks or
trust companies which will act as subcustodians for Fund pursuant to
Section 3.S of this Agreement.
6. COMPENSATION. Fund will pay to Custodian such compensation as is stated in
the Fee Schedule attached hereto as Exhibit B which may be changed from
time to time as agreed to in writing by Custodian and Fund. Custodian may
charge such compensation against monies held by it for the account of Fund.
Custodian will also be entitled, notwithstanding the provisions of Sections
5.C. or 5.D. hereof, to charge against any monies held by it for the
account of Fund the amount of any loss, damage, liability, advance, or
expense for which it shall be entitled to reimbursement under the
provisions of this Agreement including fees or expenses due to Custodian
for other services provided to the Fund by the Custodian. Custodian will
not be entitled to reimbursement by Fund for any loss or expenses of any
subcustodian.
7. TERMINATION. Either party to this Agreement may terminate the same by
notice in writing, delivered or mailed, postage prepaid, to the other party
hereto and received not less than ninety (90) days prior to the date upon
which such termination will take effect. If the Custodian terminates this
Agreement, the Fund may extend the effective date of the termination ninety
(90) days by written request to the Custodian thirty (30) days prior to the
end of the initial ninety (90) days notice period unless the Custodian in
good
25
<PAGE>
faith could not perform the duties hereunder. Upon termination of this
Agreement, Fund will pay to Custodian such compensation for its
reimbursable disbursements, costs and expenses paid or incurred to such
date and Fund will use its best efforts to obtain a successor custodian.
Unless the holders of a majority of the outstanding shares of "Capital
Stock" of Fund vote to have the securities, funds and other properties held
under this Agreement delivered and paid over to some other person, firm or
corporation specified in the vote, having not less the Two Million Dollars
($2,000,000) aggregate capital, surplus and undivided profits, as shown by
its last published report, and meeting such other qualifications for
custodian as set forth in the Bylaws of Fund, the Board of Directors of
Fund will, forthwith upon giving or receiving notice of termination of this
Agreement, appoint as successor custodian a bank or trust company having
such qualifications. Custodian will, upon termination of this Agreement,
deliver to the successor custodian so specified or appointed, at
Custodian's office, all securities then held by Custodian hereunder, duly
endorsed and in form for transfer, all funds and other properties of Fund
deposited with or held by Custodian hereunder, or will co-operate in
effecting changes in book-entries at the Depository Trust Company or in the
Treasury/Federal Reserve Book-Entry System pursuant to 31 CFR Sec. 306.118.
In the event no such vote has been adopted by the stockholders of Fund and
no written order designating a successor custodian has been delivered to
Custodian on or before the date when such termination becomes effective,
then Custodian will deliver the securities, funds and properties of Fund to
a bank or trust company at the selection of Custodian and meeting the
qualifications for custodian, if any, set forth in the Bylaws of Fund and
having not less that Two Million Dollars ($2,000,000) aggregate capital,
surplus and undivided profits, as shown by its last published report. Upon
either such delivery to a successor custodian,
26
<PAGE>
Custodian will have no further obligations or liabilities under this
Agreement. Thereafter such bank or trust company will be the successor
custodian under this Agreement and will be entitled to reasonable
compensation for its services. In the event that no such successor
custodian can be found, Fund will submit to its shareholders, before
permitting delivery of the cash and securities owned by Fund to anyone
other than a successor custodian, the question of whether Fund will be
liquidated or function without a custodian. Notwithstanding the foregoing
requirement as to delivery upon termination of this Agreement, Custodian
may make any other delivery of the securities, funds and property of Fund
which is permitted by the Investment Company Act of 1940, Fund's
Certificate of Incorporation and Bylaws then in effect or apply to a court
of competent jurisdiction for the appointment of a successor custodian.
8. NOTICES. Notices, requests, instructions and other writings received by
Fund at One Bankers Trust Plaza, New York, New York 10006 such other
address as Fund may have designated to Custodian in writing, will be deemed
to have been properly given to Fund hereunder; and notices, requests,
instructions and other writings received by Custodian at its offices at 127
West 10th Street, Kansas City, Missouri 64105, or to such other address as
it may have designated to Fund in writing, will be deemed to have been
properly given to Custodian hereunder.
9. MISCELLANEOUS.
A. This Agreement is executed and delivered in the State of Missouri and
shall be governed by the laws of said state.
B. All the terms and provisions of this Agreement shall be binding upon,
inure to the benefit of, and be enforceable by the respective
successor and assigns of the parties hereto.
27
<PAGE>
C. No provisions of the Agreement may be amended or modified, in any
manner except by a written agreement properly authorized and executed
by both parties hereto. D. The captions in this Agreement are included
for convenience of reference only, and in no way define or delimit any
of the provisions hereof or otherwise affect their construction or
effect.
E. This Agreement shall become effective at the close of business on
the____ day of______________, 19___.
F. This Agreement may be executed simultaneously in two or more
counterparts, each of which will be deemed an original but all of
which together will constitute one and the same instrument.
G. If any part, term or provision of this Agreement is by the courts held
to be illegal, in conflict with any law or otherwise invalid, the
remaining portion or portions shall be considered severable and not be
affected, and the rights and obligations of the parties shall be
construed and enforced as if the Agreement did not contain the
particular part, term or provision held to be illegal or invalid.
H. Custodian will not release the identity of Fund to an issuer which
requests such information pursuant to the Shareholder Communications
Act of 1985 for the specific purpose of direct communications between
such issuer and Fund unless the Fund directs the Custodian otherwise.
I. This Agreement may not be assigned by either party without prior
written consent of the other party.
J. If any provision of the Agreement, either in its present form or as
amended from time to time, limits, qualifies, or conflicts with the
Investment Company Act of 1940 and the rules and regulations
promulgated thereunder, such statutes, rules and regulations shall
28
<PAGE>
be deemed to control and supersede such provision without nullifying or
terminating the remainder of the provisions of this Agreement.
29
<PAGE>
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly respective authorized officers.
INVESTORS FIDUCIARY TRUST COMPANY
By:_______________________________
Gerard P. Dipoto, Jr.
Senior Vice President
ATTEST:
________________
Cheryl J. Naegler
Assistant Secretary
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
By:_______________________________
Title:____________________________
ATTEST:
________________
Secretary
30
SULLIVAN & CROMWELL
125 Broad Street
New York, New York 10004-2498
November 16, 1984
Seligman California Tax-Exempt Fund Series
One Bankers Trust Plaza
New York, New York 10006
Dear Sirs:
With respect to the Registration Statement on Form N-1A (File No. 2-93569)
(the "Registration Statement") filed by Seligman California Tax-Exempt Fund
Series, an unincorporated business trust organized under the laws of the
Commonwealth of Massachusetts (the "Fund"), with the Securities and Exchange
Commission for the purpose of registering under the Securities Act of 1933, as
amended, an indefinite number of shares of beneficial interest, $.001 par value
(the "Shares"), we, as your counsel, have examined such corporate records,
certificates and other documents and reviewed such questions of law as we have
considered necessary or appropriate for the purposes of this opinion, when
Shares of each Series have been issued and sold in accordance with the terms of
the Distributing Agreement, dated as of September 11, 1984, between the Fund and
Seligman Marketing, Inc., as referred to in the Registration Statement, and as
authorized by the Trustees of the Fund, such Shares of each Series will be
validly issued, fully paid and nonassessable.
We are members only of the New York bar and, in connection with all matters
governed by the laws of the Commonwealth of Massachusetts, we have relied upon
the opinion dated today of Gaston Snow & Ely Bartlett, Boston, Massachusetts,
which opinion we believe you and we are justified in relying upon.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement. In giving this consent, we do not admit that we come
within the category of persons whose consent is required under Section 7 of the
Securities Act of 1933, as amended.
Very truly yours,
Sullivan & Cromwell
CONSENT OF INDEPENDENT AUDITORS
Seligman Municipal Fund Series, Inc.:
We consent to the incorporation by reference in the Statement of Additional
Information in this Post-Effective Amendment No. 30 to Registration Statement
No. 2-86008 of our report dated October 30, 1996, appearing in the annual report
to shareholders for the year ended September 30, 1996, and to the reference to
us under the caption "Financial Highlights" in the Prospectus, which is part of
such Registration Statement.
DELOITTE & TOUCHE LLP
New York, New York
January 24, 1997
January 15, 1997
Ireland, Stapleton, Pryor & Pascoe, P.C.
1675 Broadway Suite 2600
Denver, Colorado 80202
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
With respect to Post-Effective Amendment No. 30 to the Registration
Statement on Form N-1A under the Securities Act of 1933, as amended, of Seligman
Municipal Fund Series, Inc., formerly known as Seligman Tax-Exempt Fund Series,
Inc., we have reviewed the material relative to Colorado taxes in the
Registration Statement. Subject to such review, our opinion dated January 23,
1990 remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "Colorado Taxes." In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
IRELAND, STAPLETON, PRYOR &
PASCOE, P.C.
By:________________________
Vice President
KING & SPALDING
191 Peachtree Street
Atlanta, Georgia 30303-1763
January 3, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
In our capacity as your special Georgia counsel, you have asked that we
render an opinion on certain Georgia tax matters relating to shares of the
Georgia Tax-Exempt Series (the "Georgia Series") to be offered to the public.
We understand that our opinion may be filed as an exhibit to the
Post-Effective Amendment No. 30 to the Registration Statement (the
"Post-Effective Amendment") that you will file with the Securities and Exchange
Commission relating to the shares of the Georgia Series. We further understand
that our opinion will be discussed under the caption "Georgia Taxes" in the
Registration Statement. We consent to the filing of our opinion as an exhibit to
the Registration Statement and to the reference to our firm and opinion under
the heading "Georgia Taxes." In giving such consent, we do not thereby admit
that we are in the category of persons whose consent is required under Section 7
of the Securities Act of 1933, as amended.
In rendering the opinion expressed herein, we have examined such documents
as we have deemed appropriate, including previous amendments to the Registration
Statement and the Notice of Joint Special Meeting of Shareholders and Proxy
Statement dated August 16, 1996. In our examination of documents, we have
assumed, with your consent, that all documents submitted to us as photocopies
faithfully reproduce the originals thereof, that such originals are authentic,
that all such documents have been or will be duly executed to the extent
required, and that all statements set forth in such documents are accurate.
<PAGE>
Based upon the foregoing, it is our opinion that under existing law,
shareholders of the Georgia Series will not be subject to Georgia income taxes
on dividends with respect to shares of the Georgia Series to the extent that
such distributions represent "exempt-interest dividends" for federal income tax
purposes that are attributable to interest-bearing obligations issued by or on
behalf of the State of Georgia or its political subdivisions, or by the
governments of Puerto Rico, the Virgin Islands or Guam, which are held by the
Georgia Series. Dividends, if any, derived from capital gains or other sources
generally will be taxable to shareholders of the Georgia Series for Georgia
income tax purposes.
Our opinion is limited to the tax matters specifically covered thereby, and
we have not been asked to address, nor have we addressed, any other tax
consequences relating to the shares of the Georgia Series.
Very truly yours,
KING & SPALDING
Liskow & Lewis
One Shell Square, 50th Floor
New Orleans, Louisiana 70139-5001
January 21, 1997
Writer's Direct Dial No. (504) 556-4112
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
You have requested our updated opinion with respect to certain Louisiana
income tax consequences of an investment in the Louisiana Municipal Series of
shares of the Seligman Municipal Fund Series, Inc. (the "Fund").
In rendering the opinion contained herein, we have relied upon the accuracy
of the facts and representations previously provided to us as follows:
The Fund is a diversified open-ended investment company incorporated in
Maryland on August 8, 1983, which is, and will maintain its status during all
relevant periods as a regulated investment company for federal income tax
purposes as defined in Section 851 of the Internal Revenue Code of 1986, as
amended, (the "Code").
The Fund consists of several series, one of which is the Louisiana
Municipal Series ("Louisiana Series"). Under normal conditions, the Louisiana
Series attempts to invest 100%, and as a matter of fundamental policy, invests
at least 80% of the value of its net assets in debt securities the interest on
which is exempt from regular federal income tax and Louisiana income tax. Such
interest may, however, be subject to the federal alternative minimum tax. In
unusual circumstances, the Fund may invest up to 20% of the value of its net
assets on a temporary basis in fixed income securities, the interest on which is
subject to both federal and Louisiana income tax, pending the investment or
reinvestment of those assets in tax-
<PAGE>
exempt securities or in order to avoid the necessity of liquidating portfolio
investments to meet redemptions of shares by investors or where market
conditions due to rising interest rates or other adverse factors warrant
temporary investing for defensive purposes.
The Fund's net investment income is declared daily and paid to shareholders
monthly. The Fund distributes substantially all of any taxable net long and
short-term gains realized on investments to shareholders early in the year
following the year in which such gains are realized. The Louisiana Series
notifies its shareholders within forty-five (45) days after the close of the
year as to the interest derived from securities which are exempt from Louisiana
income taxes.
By Act 242 of the 1991 Regular Session of the Louisiana Legislature,
Louisiana Revised Statute 47:293(6) was amended by the addition of subparagraph
(d) which reads:
(d) For the purposes of this Paragraph, income distributed by a trust,
partnership, or mutual fund to an individual taxpayer shall retain the same
character in his hands as it had in the hands of such distributor to the
extent such income similarly retains it character for federal income tax
purposes.
For purposes of confirming the interpretation of this provision of law by
the Louisiana Department of Revenue and Taxation (the "Department"), we have
obtained an updated ruling (the "Ruling") which acknowledges that to the extent
distributions from a fund such as the Fund, to resident individual-shareholders
are attributable to interest from obligations whose interest is exempt from
Louisiana income tax pursuant to Louisiana law or the income from which
Louisiana is prohibited from taxing by the constitution or laws of the United
States, fund dividends will be considered Louisiana tax-exempt interest income
when received by the resident individual-shareholder.
With respect to corporations, the amendment to La. R.S. 47:293 is not
clear, and for that reason, we also sought in
<PAGE>
the Ruling to obtain from the Department its position as to the appropriate tax
treatment of corporations receiving distributions from a fund such as the Fund.
Concerning corporations, the Department has concluded that to the extent, for
federal income tax purposes, distributions from a fund such as the Fund retain
the same character in the hands of the recipient corporation as they had in the
hands of the fund, they will similarly retain their character for Louisiana
income tax purposes.
We have further sought and obtained from the Department as part of the
Ruling the Department's position with respect to the income tax treatment of
income from a fund such as the Fund received by a trust or an estate. For
taxable periods beginning before January 1, 1997, the Department has concluded
that the law is not clear, although the Department is "inclined" to accept
similar treatment by trusts or estates of distributions from a fund such as the
Fund as would be afforded a trust or an estate under federal law. The Department
specifically reserved the right to consider and apply a different interpretation
at any time in the future.
For taxable periods beginning after December 31, 1996, the Department has
concluded that to the extent, for federal income tax purposes, distributions
from a fund such as the Fund retain the same character in the hands of the
recipient trust or estate as they had in the hands of the fund, they will
similarly retain their character for Louisiana income tax purposes. This change
in the Department's conclusion is the result of specific legislation, Act 41 of
the 1996 Regular Session of the Louisiana Legislature, that conformed the
Louisiana income tax applicable to trusts and estates to the corresponding
provisions of the Code. Act 41 is effective for taxable periods beginning after
December 31, 1996.
With regard to each type of possible shareholder in the Fund considered by
the Department, i.e., individual, corporation, trust, or estate, the Department
also stated that the change in fundamental investment policy made by the Fund
allowing it to invest in debt securities the interest from which could be
subject to the federal alternative minimum tax would not affect the Department's
opinion concerning the taxability of
<PAGE>
the Fund dividends in Louisiana. Louisiana does not tax interest in a "specified
private activity bond," as defined in Code section 57(a)(5)(C), issued by the
State of Louisiana or its political or governmental subdivisions, its
governmental agencies, or instrumentalities authorized under the laws of the
State of Louisiana to issue tax-exempt obligations.
We understand that the Department has not issued a written policy setting
forth the right of a taxpayer to rely on a private ruling; nor has the
Department issued a formal written policy stating the conditions under which the
Department may revoke or attempt to revoke a private ruling, and whether such
revocation would be retroactively or prospectively applied. Accordingly, there
can be no assurance that the Department will not issue a formal written policy
in the future which is contrary to its current practices with respect to its
adherence to its private rulings.
Subject to the foregoing and based on the Ruling, it is our opinion that to
the extent distributions from the Fund to its Louisiana resident individual
shareholders and corporate shareholders, and for tax periods beginning after
December 31, 1996, to trust or estate shareholders, are attributable to exempt
interest generated from tax-exempt obligations of the State of Louisiana or its
political or governmental subdivisions, its governmental agencies, or
instrumentalities authorized under the laws of the State of Louisiana to issue
tax-exempt obligations ("Louisiana Tax-Exempt Obligations"), such exempt
interest will not be included in an individual's adjusted gross income within
the definition of La. R.S. 47:293, or a corporation's gross income, or a trust's
or estate's gross income, nor will it constitute taxable income of a
corporation, a trust, an estate, or a resident individual within the definition
of La. R.S. 47:293. As a result of the application of the relevant Louisiana
statutes, distributions received from the Fund by a corporation, a resident
individual, a trust, or an estate (for trusts and estates, for taxable periods
beginning after December 31, 1996) will not be subject to Louisiana income tax
to the extent such distributions are attributable to the interest earned on
Louisiana Tax-Exempt Obligations. To the extent that the distributions under the
Louisiana Series are derived from sources other than interest on Louisiana
Tax-Exempt
<PAGE>
Obligations, including long term or short term capital gains, such distributions
will be subject to Louisiana income tax except to the extent Louisiana is
prohibited from taxing such distributions by the constitution or laws of the
United States.
Because of the uncertainty in the law and the unwillingness of the
Department to commit itself to a binding position, we render no opinion with
respect to the Louisiana tax treatment of distributions from the Fund received
by a trust or an estate for taxable periods beginning before January 1, 1997.
Non-resident individuals, corporations, and trusts and estates maintaining
their legal domicile other than in the State of Louisiana will not be subject to
Louisiana income tax on their Louisiana Series dividends.
No opinion is expressed herein with respect to the legality or the
enforceability of any future policies or changes in policies of the Department
in connection with the binding effect of its private letter rulings.
You have not requested and accordingly, we are not rendering any opinion
with respect to Louisiana franchise, ad valorem, excise, sales, use or other
taxes other than Louisiana state income taxes applicable to dividend
distributions from Louisiana Tax-Exempt Obligations to shareholders who are
individuals, corporations, trusts, and estates.
This opinion is rendered as of the date hereof, and we make no undertakings
to supplement our opinion with facts or circumstances which come to our
attention or changes in the law, rules, regulations or administrative policies
which may affect such opinions.
<PAGE>
We hereby consent to the filing of this opinion as an exhibit to
Post-Effective Amendment No. 30 to the Fund Registration Statement filed with
the Securities and Exchange Commission by or on behalf of the Fund in connection
with the Louisiana Series and to the reference to our firm name therein. In
giving this consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Very truly yours,
LISKOW & LEWIS
By:_____________________________
Venable Baetjer & Howard, LLP
1800 Merchantile Bank & Trust Building
Two Hopkins Plaza
Baltimore, Maryland 21201-2978
January 10, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
With respect to Post-Effective Amendment No. 30 to the Registration
Statement on Form N-1A under the Securities Act of 1933, as amended, of Seligman
Municipal Fund Series, Inc., we have reviewed the material relative to Maryland
Taxes in the Registration Statement. Subject to such review, our opinion as
delivered to you and as filed with the Securities and Exchange Commission
remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "Maryland Taxes." In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Very truly yours,
Venable Baetjer and
Howard, LLP
Palmer & Dodge
One Beacon Street
Boston, MA 02008-3190
Telephone: (617) 573-0100 Facsimile: (617) 227-4420
January 3, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
With respect to Post-Effective Amendment No. 30 to the Registration
Statement on Form N-1A under the Securities Act of 1933, as amended, of Seligman
Municipal Fund Series, Inc., we have reviewed the material relative to
Massachusetts Taxes in the Registration Statement. Subject to such review, our
opinion as delivered to you and as filed with the Securities and Exchange
Commission remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "Massachusetts Taxes." In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Very truly yours,
Palmer & Dodge
DICKINSON, WRIGHT, MOON, VAN DUSEN & FREEMAN
Counsellors at Law
500 Woodward Avenue, Suite 4000
Detroit, Michigan 48226-3425
January 10, 1997
Seligman Municipal fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
With respect to Post-Effective Amendment No. 30 to the Registration
Statement on Form N-1A under the Securities Act of 1933, as amended, of Seligman
Municipal Fund Series, Inc., we have reviewed the material relative to Michigan
Taxes in the Registration Statement. Subject to such review, our opinion as
delivered to you and as filed with the Securities and Exchange Commission
remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "Michigan Taxes." In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Very truly yours,
Dickinson, Wright, Moon,
Van Dusen & Freeman
Faegre & Benson
2200 Norwest Center
90 South Seventh Street
Minneapolis, Minnesota 55402-3901
January 22, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Dear Sir or Madam:
We are Minnesota tax counsel to Seligman Municipal Fund Series, Inc., a
Maryland corporation ("Seligman"). We have been informed that Seligman qualifies
as a regulated investment company as that term is defined and limited in section
851 of the Internal Revenue Code of 1986, as amended (the "Code"), and that it
has taken all other action to ensure that Seligman may pay exempt-interest
dividends as that term is defined in section 852(b)(5)(A) of the Code. We
understand that Seligman has sold separate series of classes of shares, each
generally to residents of specified states, for the purpose of enabling such
residents to receive exempt-interest dividends that are exempt from the regular
federal income tax as well as from the regular income tax imposed by the state
of residence of the recipient shareholder.
You have asked for our opinion as to the Minnesota income tax consequences
of the receipt by a shareholder of the Minnesota Municipal Class of
exempt-interest dividends that are payable with respect to shares of the
Minnesota Municipal Class. In responding to your inquiry, we have reviewed the
Articles of Incorporation of Seligman, as amended and supplemented, and certain
other materials that you have supplied to us. In addition, we have reviewed
certain of the laws of the State of Minnesota, and certain provisions of the
Code.
You have told us that each of the classes of Seligman, including the
Minnesota Municipal Class, is, and intends to continue to qualify as, a "fund"
of Seligman within the meaning of section 851(h) of the Code. As such, you have
informed us that each of the classes of Seligman, including the Minnesota
Municipal Class, is, and intends to continue to qualify as, a separate regulated
investment company, and that Seligman has taken, and will take, all other action
so as to enable the Minnesota Municipal Class to pay exempt-interest dividends
within
<PAGE>
the meaning of the Code. We have also been told that Seligman has in the past
and will in the future attempt to invest the bulk of the assets belonging to the
Minnesota Municipal Class in any combination of tax-exempt obligations of the
State of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, so as to generate as
large a percentage of tax-exempt income as is possible. In addition, we have
been informed that, during all material times, Seligman has invested the assets
belonging to the Minnesota Municipal Class, and has made payments to the
shareholders of the Minnesota Municipal Class, so as to meet the 95% test that
is set forth below, whether based on a fiscal or a calendar year basis. We have
relied, for purposes of this opinion, upon the statements in the documents that
we have reviewed and upon all of the representations that have been made to us,
but have made no independent investigation thereof, and express no opinion with
respect thereto.
Minn. Stat. ss.290.01, subd. 19, provides that the starting point for the
computation of Minnesota taxable income is federal taxable income, to which
various additions, subtractions, and modifications are then made. Minn. Stat.
ss.290.01, subd. 19(a), provides for certain additions in the case of
individuals, estates, and trusts, one of which is the following:
(1)(ii) exempt-interest dividends as defined in section 852(b)(5) of the
Internal Revenue Code, except the portion of the exempt- interest dividends
derived from interest income on obligations of the state of Minnesota or
its political or governmental subdivisions, municipalities, governmental
agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all
shareholders represents 95 percent or more of the exempt-interest dividends
that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated
investment company as defined in
<PAGE>
section 851(h) of the Internal Revenue Code, making the payment;
In addition, Minn. Stat. ss.289A.50, subd. 10, which was enacted by Laws of
Minnesota for 1995, Chapter 264, article 1, section 1, provides as follows:
LIMITATION ON REFUND. If an addition to federal taxable income under
section 290.01, subdivision 19a, clause (1), is judicially determined to
discriminate against interstate commerce, the legislature intends that the
discrimination be remedied by adding interest on obligations of Minnesota
governmental units and Indian tribes to federal taxable income. This
subdivision applies beginning with the taxable years that begin during the
calendar year in which the court's decision is final. Other remedies apply
for previous taxable years.
Accordingly, subject to Minn. Stat. ss.289A.50, subd. 10, to the extent that (1)
the exempt-interest dividends that are paid by the Minnesota Municipal Class are
derived from interest income on obligations of the State of Minnesota or its
political or governmental subdivisions, municipalities, governmental agencies or
instrumentalities (the "specified obligations"), and (2) the 95% test that is
set forth above is met, such exempt-interest dividends (to the extent that they
are not includable in federal taxable income) will likewise be exempt from the
regular Minnesota personal income tax, and only those exempt-interest dividends
that are derived from other sources will be subject to such tax, in the case of
individuals, estates, and trusts.(1)
- ----------
(1) It should be noted that interest income that is derived from obligations
held through repurchase agreements, even though derived from the specified
obligAtions the interest income from which would be exempt, will not
qualify under these rules, and any dividends that are attributable to
such interest will be subject to the regular Minnesota personal income tax.
<PAGE>
As noted above, Minn. Stat. 289A.50, subd. 10, provides that it is the
intent of Minnesota Legislature that interest income on obligations of Minnesota
governmental units, which obligations include the specified obligations, and
exempt-interest dividends that are derived from interest income on such
obligations, be included in the net income of individuals, estates, and trusts
for Minnesota income tax purposes if it is judicially determined that the
exemption by Minnesota of such interest or such exempt-interest dividends
unlawfully discriminates against interstate commerce because interest income on
obligations of governmental units located in other states, or exempt-interest
dividends derived from such obligations, is so included. This provision applies
to taxable years that begin during or after the calendar year in which such
judicial decision becomes final, regardless of the date on which the obligations
were issued, and other remedies apply for previous taxable years. The United
States Supreme Court in 1995 denied certiorari in an a case in which an Ohio
court upheld an exemption for interest income on obligations of Ohio
governmental issuers, even though interest income on obligations of non-Ohio
governmental issuers was subject to tax. The Ohio Supreme Court, in a subsequent
case involving the same taxpayer and the same issue, recently refused to
reconsider the merits of the case on the ground that the previous final state
court judgment barred any claim arising out of the transaction that was the
subject of the previous action. The taxpayer has appealed to the United States
Supreme Court, which has discretion to decide if it will hear the case. Even if
the Court declines to consider the appeal, it cannot be predicted whether a
similar case will be brought in Minnesota or elsewhere, or what the outcome of
such case would be.
Returning to the requirements of Minn. Stat. ss.290.01, subd. 19(a)(ii),
should the 95% test not be met, all exempt-interest dividends paid by the
Minnesota Tax-Exempt Class will be subject to the regular Minnesota personal
income tax, even if derived from the specified obligations. Finally, even if the
95% test is met, to the extent that distributions do not represent
exempt-interest dividends that are derived from interest income on the specified
obligations, such distributions, including, but not limited to, long-term
capital gains, will
<PAGE>
generally be subject to the regular Minnesota personal income tax.
In addition to imposing a regular personal income tax, Minnesota imposes an
alternative minimum tax (see Minn. Stat. ss.290.091) on individuals, estates,
and trusts that is based, in part, on such taxpayers' federal alternative
minimum taxable income, which includes federal tax preference items. The Code
provides that interest on specified private activity bonds is a federal tax
preference item, and that an exempt-interest dividend of a regulated investment
company constitutes a federal tax preference item to the extent of its
proportionate share of the interest on such private activity bonds. Accordingly,
exempt-interest dividends that are attributable to such private activity bond
interest, even though they are also attributable to the specified obligations
described in this letter, will be included in the base upon which such Minnesota
alternative minimum tax is computed. In addition, the entire portion of
exempt-interest dividends that is attributable to interest other than interest
on the specified obligations is subject to the Minnesota alternative minimum
tax. Finally, should the 95% test that is described above fail to be met, all of
the exempt-interest dividends that are received by the shareholders of the
Minnesota Municipal Class who are individuals, estates, or trusts, including all
of those that are attributable to the specified obligations, will be subject to
the Minnesota alternative minimum tax.
Subject to certain limitations that are set forth in the Minnesota rules,
Minnesota Municipal Class dividends, if any, that are derived from interest on
certain United States obligations are not subject to the regular Minnesota
personal income tax or the Minnesota alternative minimum tax, in the case of
shareholders of the Minnesota Municipal Class who are individuals, estates, or
trusts.
The above discussion has related, in general, to individuals, estates, and
trusts. Distributions, including exempt-interest dividends, that are paid to
shareholders of the Minnesota Municipal Class are not excluded in determining
the Minnesota franchise tax on corporations that is measured by taxable income
and alternative minimum taxable income. Minnesota
<PAGE>
Municipal Class distributions may also be taken into account in certain cases in
determining the minimum fee that is imposed on corporations, S corporations, and
partnerships.
The opinions expressed herein represent our judgment regarding the proper
Minnesota tax treatment of the specified shareholders of the Minnesota Municipal
Class who are subject to Minnesota taxation. Our conclusions are based on our
analysis of the Minnesota statutes, tax regulations and case law which exist as
of the date of this opinion, all of which may be subject to prospective or
retroactive change. Our opinion represents our best judgment regarding the
issues presented and is not binding upon the Minnesota Department of Revenue
("Department") or any court. Moreover, our opinion does not provide any
assurance that a position taken in reliance on such opinion will not be
challenged by the Department or rejected by a court.
We hereby consent to the filing of this opinion as an exhibit to the
registration statement to be filed on or about January 27, 1997, with the
Securities and Exchange Commission, and to the reference to us under the heading
"Minnesota Taxes." In giving such consent, we do not thereby admit that we are
in the category of persons whose consent is required under section 7 of the
Securities Act of 1933, as amended.
Very truly yours,
FAEGRE & BENSON LLP
Bryan Cave LLP
3500 One Kansas City Place
Kansas City, Missouri 64105-2100
January 10, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
With respect to Post-Effective Amendment No. 30 of the Registration
Statement on Form N-1A under the Securities Act of 1933, as amended, of Seligman
Fund Series, Inc., we have reviewed the material relative to Missouri Taxes in
the Registration Statement. Subject to such review, our opinion as delivered to
you and as filed with the Securities and Exchange Commission remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "Missouri Taxes." In
giving such consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Sincerely yours,
Bryan Cave LLP
SULLIVAN & CROMWELL
125 Broad Street
New York, New York 10004
January 28, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
We have acted as counsel to Seligman Municipal Fund Series, Inc. (the
"Fund"), and you have requested our opinion regarding the New York State and
City personal income tax consequences to holders of shares of the New York
Municipal Series of the Fund (the "New York Series").
The Fund, a Maryland corporation, is an open-end non-diversified management
investment company authorized by its Articles of Incorporation, Articles of
Amendment and Articles Supplementary to such Articles of Amendment
(collectively, the "Articles") to issue shares representing separate investment
series of the Fund, one of which is the New York Series. The Articles provide
that all consideration received by the Fund for the issue or sale of shares of a
particular series, all assets in which such consideration is invested and all
income and proceeds from such assets shall irrevocably belong to that series
only, subject only to the rights of creditors. Dividends on shares of a
particular series may be paid only from the assets belonging to the series. The
income of the New York Series will consist primarily of interest on obligations
of New York State and its municipalities and public authorities which is
excluded from gross income for Federal income tax purposes by Section 103(a) of
the Internal Revenue Code of 1986, as amended (the "Code") and certain other
interest which is excluded from gross income for
<PAGE>
Federal income tax purposes, such as interest on bonds issued by the Government
of Puerto Rico and exempt pursuant to Section 745 of Title 48 of the United
States Code.
In connection with this opinion, we have assumed with your consent that the
New York Series of the Fund is a regulated investment company taxable under
Subchapter M of the Code and that dividends paid by the New York Series will
constitute in whole or in part "exempt-interest dividends" within the meaning of
Section 852(b)(5) of the Code.
Adjusted gross income for New York State and City personal income tax
purposes is defined as adjusted gross income for Federal income tax purposes
with certain statutory modifications. One modification is that interest received
by a taxpayer on obligations of any state other than New York or a political
subdivision of any such state generally must be added to Federal adjusted gross
income. Regulations promulgated by the New York State Tax Commission provide
that "exempt-interest dividends" attributable to interest on obligations of any
state other than New York or a political subdivision of any such state must be
added to Federal adjusted gross income in calculating adjusted gross income for
New York State and City personal income tax purposes.
On the basis of the foregoing and our consideration of such matters as we
have considered necessary, we advise you that, in our opinion, for New York
State and City personal income tax purposes, owners of shares in the New York
Series will be entitled to exclude from their adjusted gross income for New York
State and City tax purposes any dividends paid by the New York Series which
qualify as "exempt-interest dividends" under Section 852(b)(5) of the Code and
are not derived from interest on obligations of a state other than New York or a
political subdivision of any such state. Such dividends would include, for
example, dividends derived from qualifying interest on obligations issued by the
Government of Puerto Rico.
<PAGE>
In this regard, we have reviewed the Notices of the New York State Income
Tax Bureau, dated February 18, 1977 and March 7, 1977, expressing the view that
not only "exempt-interest dividends" derived from obligations of other states
and their political subdivisions but all "exempt-interest dividends" which are
attributable to interest on obligations of any issuer other than New York State
or one of its political subdivisions (such as obligations issued by the
Government of Puerto Rico) must be added to Federal adjusted gross income.
Insofar as these Notices conflict with the regulations, which were adopted after
the issuance of the Notices and which more closely follow the statutory
language, we regard the regulations as the controlling authority. We note that
the New York State Tax Commission has issued an advisory opinion, TSB-A-82-(5)-I
(Sept. 22, 1982), in which it concluded that "exempt-interest dividends"
attributable to interest on obligations issued by the Governments of Puerto
Rico, the Virgin Islands and Guam, are exempt from New York State and City
personal income tax.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement for the Fund and to the reference to us under the heading
"New York State and City Taxes." In giving such consent, we do not thereby admit
that we are in the category of persons whose consent is required under Section 7
of the Securities Act of 1933, as amended.
Very truly yours,
/s/Sullivan & Cromwell
Squire, Sanders & Dempsey L.L.P.
4900 Key Tower
127 Public Square
Cleveland, Ohio 44114-1304
January 8, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Re: Ohio Municipal Series
Post-Effective Amendment No. 30
Ladies and Gentlemen:
We hereby consent to use of our name and to the reference to our Firm under the
caption "Counsel" in the Statement of Additional Information included in
Post-Effective Amendment No. 30 to the Registration Statement on Form N-1A under
the Securities Act of 1933, as amended, of Seligman Municipal Fund Series, Inc.
Very truly yours,
Squire, Sanders & Dempsey
<PAGE>
January 8, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Re: Ohio Municipal Series
Post-Effective Amendment No. 30
-------------------------------
Ladies and Gentlemen:
You have requested our opinion as to the Ohio tax aspects of the Ohio Municipal
Series ("Ohio Series"), which is part of the Seligman Municipal Fund Series,
Inc. (the "Fund"). We understand that the Fund is a non-diversified, open-end
management company organized as a Maryland corporation in August, 1983. The
Fund's articles of incorporation, as amended, (i) authorize a number of
different classes of common stock, one of which is designated the Ohio Series,
and (ii) provide that all consideration received by the Fund from the issue or
sale of shares of each class, together with all investments of such
consideration, all income, earnings and profits thereon, and all funds or
payments allocated thereto by the Board of Directors of the Fund, shall
irrevocably belong to such class, subject only to the liabilities of that class
and to the rights of creditors of the Fund.
We understand that the Ohio Series will invest primarily in interest-bearing
obligations issued by or on behalf of the State of Ohio, political subdivisions
thereof and agencies and instrumentalities of the State or its political
subdivisions ("Ohio Obligations"), and by the governments of Puerto Rico, the
Virgin Islands and Guam and their authorities or municipalities ("Territorial
Obligations," and, together with Ohio Obligations, "Obligations"). We further
understand that, based on the opinion of bond counsel with respect to each issue
of Obligations held or to be held by the Ohio Series, rendered on the date of
issuance thereof, interest on each such issue is excluded from gross income for
federal income tax purposes under Section 103(a) of the Internal Revenue Code of
1986, as amended (the "Code"), or other provisions of federal law, provided that
certain representations are accurate and certain covenants are satisfied.
We understand that the Ohio Series intends to continue to qualify as a
"regulated investment company" within the meaning of Section 851 of the Code,
and to pay "exempt-interest dividends" within the meaning of Section 852(b) of
the Code, i.e., dividends that are excludable from the shareholders' gross
income for federal income tax purposes. We have assumed for the purposes of this
opinion that the Ohio Series qualifies and will continue to qualify as a
regulated investment company within the meaning of Section 851 of the Code and
that at all times at least 50 percent of the value of the total assets of the
Ohio Series will consist of Ohio Obligations, or
<PAGE>
similar obligations of other states or their subdivisions (but not including,
for this purpose, Territorial Obligations).
Based upon the foregoing and upon an examination of such documents and an
investigation of such other matters of law as we have deemed necessary, we are
of the opinion that under existing law:
1.The Ohio Series is not subject to (a) the Ohio personal income tax, (b) school
district income taxes in Ohio, (c) the Ohio corporation franchise tax, or (d)
the Ohio dealers in intangibles tax; provided that, in the case of the taxes
identified in (c) and (d), if the Ohio Series has a sufficient nexus to the
State of Ohio to be subject to Ohio taxation, the Ohio Series will be exempt
from such taxes only if it timely complies with the annual filing requirement of
Section 5733.09 of the Ohio Revised Code. We note, however, that the Ohio Tax
Commissioner has waived this annual filing requirement for each year (including
1996) since it was originally enacted in 1989.
2.Shareholders who are subject to the Ohio personal income tax or municipal or
school district income taxes in Ohio will not be subject to such taxes on
distributions with respect to shares of the Ohio Series ("Distributions") that
are properly attributable to interest on Obligations.
3.Shareholders who are subject to the Ohio corporation franchise tax computed on
the net income basis will not be subject to such tax on Distributions to the
extent that such Distributions either (a) are properly attributable to interest
on Obligations, or (b) represent "exempt-interest dividends" for federal income
tax purposes. Shares of the Ohio Series will be included in a Shareholder's tax
base for purposes of computing the Ohio corporation franchise tax on the net
worth basis.
4.Shareholders who are subject to the Ohio personal income tax, the Ohio
corporation franchise tax computed on the net income basis, or municipal or
school district income taxes in Ohio will not be subject to such taxes on
Distributions of profit made on the sale, exchange, or other disposition of Ohio
Obligations, including Distributions of "capital gain dividends," as defined in
Section 852(b)(3)(C) of the Code, properly attributable to the sale, exchange,
or other disposition of Ohio Obligations.
5.Distributions properly attributable to proceeds of insurance paid to the Ohio
Series that represent maturing or matured interest on defaulted Obligations held
by the Ohio Series and that are excluded from gross income for federal income
tax purposes are exempt from the Ohio personal income tax and municipal and
school district income taxes in Ohio, and are excluded from the net income base
of the Ohio corporation franchise tax.
<PAGE>
We have not examined any of the obligations to be acquired by the Ohio Series
and express no opinion as to whether such obligations, interest thereon or gain
from the sale or other disposition thereof are in fact exempt from any federal
or Ohio taxes.
Respectfully submitted,
Squire, Sanders & Dempsey
Schwabe Williamson & Wyatt P.C.
1211 Southwest Fifth Avenue
Suite 1600
Porland, Oregon 97204-3795
January 9, 1997
Seligman Tax-Exempt Fund Series, Inc.
One Bankers Trust Plaza
New York, NY 10006
Re: Oregon Series
------------------
Ladies and Gentlemen:
We have acted as Oregon counsel to Seligman Tax-Exempt Fund Series, Inc.
(the "Fund"), and you have requested our opinion regarding the State of Oregon
personal income tax consequences to holders of the Oregon Tax-Exempt Class of
the Common Stock of the Fund (the "Oregon Series").
The Fund, a Maryland corporation, is a nondiversified, open-end management
investment company authorized by its Articles of Incorporation and articles
supplementary thereto to issue multiple classes of Common Stock, one of which is
the Oregon Series. The Articles provide that all consideration received by the
Fund for the issue or sale of shares of a particular class, all assets in which
such consideration is invested and all income and proceeds from such assets
shall belong to that class only, subject only to the rights of creditors.
Dividends on shares of a particular class may be paid only from the assets
belonging to the class.
The income of the Oregon Series will consist primarily of interest on
obligations of the State of Oregon and its municipalities and public
authorities, which is excluded from gross income for Federal income tax purposes
by Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code").
The income of the Oregon Series may also include certain other interest which is
excluded from gross income for Federal income tax purposes, such as interest on
certain bonds issued by the
<PAGE>
Government of Puerto Rico (excluded pursuant to 48 USC Section 745), the
Government of Guam (excluded pursuant to 48 USC Section 1423a) or the Government
of the Virgin Islands (excluded pursuant to 48 USC Section 1574).
In connection with this opinion, we have assumed with your consent that the
Oregon Series is a regulated investment company taxable under Subchapter M of
the Code and that dividends paid by the Fund will constitute in whole or in part
"exempt interest dividends" within the meaning of Section 852(b)(5) of the Code.
For purposes of State of Oregon personal income tax, taxable income is
defined as taxable income for federal income tax purposes with certain statutory
modifications. One modification is that interest or dividends on obligations or
securities of any state other than Oregon, or of any political subdivision or
authority of a state other than Oregon, generally must be added to federal
adjusted gross income. Another modification is that interest or dividends on
obligations of any authority, commission, instrumentality or territorial
possession of the United States which by the laws of the United States is exempt
from federal income tax but not from state income taxes also generally must be
added to federal adjusted gross income.
On the basis of the foregoing, and our consideration of such matters as we
have considered necessary, we advise you that, in our opinion, under present law
for State of Oregon personal income tax purposes, owners of the Oregon Series
will be entitled to exclude from State of Oregon adjusted gross income dividends
paid by the Oregon Series which:
qualify as "exempt-interest dividends" under section 852(b)(5) of
the Code; and
are derived from:
interest or dividends on obligations or securities of the State
of Oregon or of a political subdivision or authority of the State
of Oregon; or
interest or dividends on obligations of any authority,
commission, instrumentality or territoriality of the United
States which, by the laws of the United States, are exempt from
state
<PAGE>
income taxes (such as interest on certain bonds issued by Puerto
Rico, Guam or the Virgin Islands).
In our opinion, under present law, shares of the Oregon Series will not be
subject to Oregon personal property tax.
We express no opinion as to taxation under the Oregon Corporate Excise Tax
or the Oregon Corporate Income Tax of dividends paid by the Oregon Series.
We hereby consent to the filing of this opinion as an exhibit to your
Post-Effective Amendment No. 30 to the Registration Statement under the
Securities Act of 1933, as amended, of Seligman Tax-Exempt Fund Series, Inc.,
and to the reference to us under the heading "Oregon Taxes." In giving such
consent, we do not thereby admit that we are in the category of persons whose
consent is required under Section 7 of the Securities Act of 1933, as amended.
Very truly yours,
SCHWABE, WILLIAMSON & WYATT, P.C.
By: ________________________
Roy D. Lambert
Sinkler & Boyd
The Palmetto Center
1426 Main Street, Suite 1200
Columbia, South Carolina 29201-2834
January 2, 1997
Seligman Municipal Fund Series, Inc.
100 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
With respect to Post-Effective Amendment No. 30 to the Registration
Statement on Form N-1A under Securities Act of 1933, as amended, of Seligman
Municipal Fund Series, Inc., we have reviewed the material relative to South
Carolina Taxes in the Registration Statement. Subject to such review, our
opinion as delivered to you and as filed with the Securities and Exchange
Commissions remains unchanged.
We consent to the filing of this consent as an exhibit to the Registration
Statement and to the reference to us under the heading "South Carolina Taxes."
In giving such consent, we do not thereby admit that we are in the category of
person whose consent is required under Section 7 of the Securities Act of 1933,
as amended.
Very truly yours,
Sinkler & Boyd, P.A.
INVESTMENT LETTER
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
Seligman Tax-Exempt Fund Series, Inc. (the "Fund"), an open-end, non-diversified
management investment company, and the undersigned ("Purchaser"), intending to
be legally bound, hereby agree as follows:
1. The Fund hereby sells to Purchaser and Purchaser purchases 1 Class D share
each (the "Shares") of Capital Stock (each par value $.001) of the Seligman
National Tax-Exempt Series, Seligman Colorado Tax-Exempt Series, Seligman
Georgia Tax-Exempt Series, Seligman Louisiana Tax-Exempt Series, Seligman
Maryland Tax-Exempt Series, Seligman Massachusetts Tax-Exempt Series,
Seligman Michigan Tax-Exempt Series, Seligman Minnesota Tax-Exempt Series,
Seligman Missouri Tax-Exempt Series, Seligman New York Tax-Exempt Series,
Seligman Ohio Tax-Exempt Series, Seligman Oregon Tax-Exempt Series, and
Seligman South Carolina Tax-Exempt Series (collectively, the "Series"),
series of the Fund at a price equivalent to the net asset value of one
share of each Series as of the close of business on January 31, 1994. The
Fund hereby acknowledges receipt from the Purchaser of funds in such amount
in full payment for the Shares.
2. Purchaser represents and warrants to the Fund that the Shares are being
acquired for investment and not with a view to distribution thereof, and
that Purchaser has no present intention to redeem or dispose of the Shares.
IN WITNESS WHEREOF, the parties have executed this agreement as of the 31st day
of January, 1994.
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
By:
-------------------------------------------------
Name: Lawrence P. Vogel
Title: Vice President
J. & W. SELIGMAN & CO. INCORPORATED
By:
-------------------------------------------------
Name: Lawrence P. Vogel
Title: Senior Vice President
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION PLAN
Section 1. Seligman Tax-Exempt Fund Series, Inc. (the "Fund") will pay fees
to Seligman Financial Services, Inc., the principal underwriter of its shares
(the "Distributor"), for administration, shareholder services and distribution
assistance for the Class A and Class D shares of the Fund. As a result, the Fund
is adopting this Administration, Shareholder Services and Distribution Plan (the
"Plan") pursuant to Section 12(b) of the Investment Company Act of 1940, as
amended (the "Act") and Rule 12b-1 thereunder.
Section 2. Pursuant to this Plan, each Series of the Fund may pay to the
Distributor up to 0.25% on an annual basis, payable quarterly, of the average
daily net assets of the Series attributable to the Class A shares and up to
1.00% on an annual basis, payable monthly, of the average daily net assets of
the Series attributable to the Class D Shares. Such fee will be used in its
entirety by the Distributor to make payments for administration, shareholder
services and distribution assistance, including, but not limited to (i)
compensation to securities dealers and other organizations (each, a "Service
Organization" and collectively, the "Service Organizations"), for providing
distribution assistance with respect to assets invested in the Series, (ii)
compensation to Service Organizations for providing administration, accounting
and other shareholder services with respect to the Series' shareholders, and
(iii) otherwise promoting the sale of shares of the Series, including paying for
the preparation of advertising and sales literature and the printing and
distribution of such promotional materials and prospectuses to prospective
investors and defraying the Distributor's costs incurred in connection with its
marketing efforts with respect to shares of the Series. To the extent a Service
Organization provides administration, accounting and other shareholder services,
payment for which is not required to be made pursuant to a plan meeting the
requirements of Rule 12b-1, a portion of the fee paid by the Series shall be
deemed to include compensation for such services. The fees received from the
Series hereunder in respect of the Class A shares may not be used to pay any
interest expense, carrying charges or other financing costs, and fees received
hereunder may not be used to pay any allocation of overhead of the Distributor.
The fees of any particular class of and Series of the Fund may not be used to
subsidize the sale of shares of any other class. The fees payable to Service
Organizations from time to time shall, within such limits, be determined by the
Directors of the Fund.
Section 3. J. & W. Seligman & Co. Incorporated, the Fund's investment
manager (the "Manager"), in its sole discretion, may make payments to the
Distributor for similar purposes. These payments will be made by the Manager
from its own resources, which may include the management fee that the Manager
receives from the Fund.
Section 4. This Plan shall continue in effect through December 31 of each
year so long as such continuance is specifically approved at least annually by
vote of a majority of both (a) the Directors of the Fund and (b) the Qualified
Directors, cast in person at a meeting called for the purpose of voting on such
approval.
1
<PAGE>
Section 5. The Distributor shall provide to the Fund's Directors, and the
Directors shall review, at least quarterly, a written report of the amounts so
expended and the purposes for which such expenditures were made.
Section 6. This Plan may be terminated by the Fund with respect to any
class at any time by vote of a majority of the Qualified Directors, or by vote
of a majority of the outstanding voting securities of such class. If this Plan
is terminated in respect of a class, no amounts (other than amounts accrued but
not yet paid) would be owed by the Fund to the Distributor with respect to such
class.
Section 7. All agreements related to this Plan shall be in writing, and
shall be approved by vote of a majority of both (a) the Directors of the Fund
and (b) the Qualified Directors, cast in person at a meeting called for the
purpose of voting on such approval, provided, however, that the identity of a
particular Service Organization executing any such agreement may be ratified by
such a vote within 90 days of such execution. Any agreement related to this Plan
shall provide:
A. That such agreement may be terminated in respect of any class of any
Series of the Fund at any time, without payment of any penalty, by
vote of a majority of the Qualified Directors or by vote of a majority
of the outstanding voting securities of the class, on not more than 60
days' written notice to any other party to the agreement; and
B. That such agreement shall terminate automatically in the event of its
assignment.
Section 8. This Plan may not be amended to increase materially the amount
of fees permitted pursuant to Section 2 hereof without the approval of a
majority of the outstanding voting securities of the relevant class and no
material amendment to this Plan shall be approved other than by vote of a
majority of both (a) the Directors of the Fund and (b) the Qualified Directors,
cast in person at a meeting called for the purpose of voting on such approval.
Section 9. The Fund is not obligated to pay any administration, shareholder
services or distribution expense in excess of the fee described in Section 2
hereof, and, in the case of Class A shares, any expenses of administration,
shareholder services and distribution of Class A shares of and Series of the
Fund accrued in one fiscal year of the Fund may not be paid from administration,
shareholder services and distribution fees received from the Fund in respect of
Class A shares in any other fiscal year.
Section 10. As used in this Plan, (a) the terms "assignment", "interested
person" and "vote of a majority of the outstanding voting securities" shall have
the respective meanings specified in the Act and the rules and regulations
thereunder, subject to such exemptions as may be granted by the Securities and
Exchange Commission and (b) the term "Qualified Directors" shall mean the
Directors of the Fund who are not "interested persons" of
2
<PAGE>
the Fund and have no direct or indirect financial interest in the operation of
this Plan or in any agreement related to this Plan.
3
<PAGE>
ADMINISTRATION, SHAREHOLDER SERVICES AND
DISTRIBUTION AGREEMENT
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION AGREEMENT, dated as of
____________ , 19___ between Seligman Financial Services, Inc. ("Seligman
Financial Services") ___________________ and (the "Service Organization").
The Parties hereto enter into a Administration, Shareholder Services and
Distribution Agreement ("Service Agreement") with respect to the shares of
Seligman Capital Fund, Inc., Seligman Cash Management Fund, Inc., Seligman
Common Stock Fund, Inc., Seligman Communications and Information Fund, Inc.,
Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman Henderson
Global Fund Series, Inc., Seligman High Income Fund Series, Seligman Income
Fund, Inc., Seligman New Jersey Tax-Exempt Fund, Inc., Seligman Pennsylvania
Tax-Exempt Fund Series, Seligman Tax-Exempt Fund Series, Inc., Seligman
Tax-Exempt Series Trust (the "Funds"), and any other future mutual funds that
may become members of the Seligman Group of Investment Companies which adopt an
Administration, Shareholder Services and Distribution Plan, pursuant to Rule
12b-1 under the Investment Company Act of 1940, as amended (the "Act"), and in
consideration of the mutual agreements herein made, agree as follows:
The Service Organization shall make such use of or provide such
information and services as may be necessary or appropriate (i) to provide
shareholder services to shareholders of the Funds and (ii) to assist Seligman
Financial Services in any distribution of shares of the Funds, including,
without limitation, making use of the Service Organization's name, client lists,
and publications, for the solicitation of sales of shares of the Funds to
Service Organization clients, and such other assistance as Seligman Financial
Services reasonably requests, to the extent permitted by applicable statute,
rule or regulation.
1. Except with respect to the Class D shares of a Fund for the first year
following the sale thereof, Seligman Financial Services shall pay to the
Service Organization a service fee (as defined in the National Association
of Securities Dealers, Inc. Rules of Fair Practice) not to exceed .25 of 1%
per annum of the average daily net assets of each class of shares of each
Fund attributable to the clients of the Service Organization.
2. With respect to the first year following the sale of Class D shares of a
Fund, Seligman Financial Services shall pay to the Service Organization at
or promptly after the time of sale a service fee (as defined in the
National Association of Securities Dealers, Inc. Rules of Fair Practice)
not to exceed .25 of 1% of the net asset value of the Class D shares sold
by the Service Organization. Such service fee shall be paid to the Service
Organization solely for personal services and/or the maintenance of
shareholder accounts to be provided by the Service Organization to the
purchaser of such Class D Shares over the course of the first year
following the sale.
4
<PAGE>
3. Any service fee paid hereunder shall be paid solely for personal services
and/or the maintenance of shareholder accounts. For greater certainty, no
part of a service fee shall be paid for subtransfer agency services,
subaccounting services, or administrative services.
4. In addition to payment of the service fee, from time to time Seligman
Financial Services may make payments to the Service Organization in
addition to those contemplated above for providing distribution assistance
with respect to assets invested in each Fund by its clients.
5. Neither the Service Organization nor any of its employees or agents are
authorized to make any representation concerning the Funds or the Funds'
shares except those contained in the then current Prospectus, copies of
which will be supplied by Seligman Financial Services. The Service
Organization shall have no authority to act as agent for Seligman Financial
Services or the Funds.
6. In consideration of the services provided pursuant to paragraphs 1, 2
and/or 4 above, the Service Organization shall be entitled to receive fees
as are set forth in Exhibit A hereto as may be amended from time to time by
Seligman Financial Services. Seligman Financial Services has no obligation
to make any such payments and the Service Organization agrees to waive
payment of its fee until Seligman Financial Services is in receipt of the
fee from the Fund(s). The payment of fees has been authorized pursuant to
an Administration, Shareholder Services and Distribution Plans (the
"Plans") approved by the Directors/Trustees and the shareholders of the
Funds pursuant to the requirements of the Act and such authorizations may
be withdrawn at any time.
7. It is understood that the Funds reserve the right, at their discretion and
without notice, to suspend or withdraw the sale of shares of the Funds.
This Agreement shall not be construed to authorize the Service Organization
to perform any act that Seligman Financial Services would not be permitted
to perform under the respective Distributing Agreements between each of the
Funds and Seligman Financial Services.
8. Subject to the proviso in Section 6 of the Plans, this Agreement shall
continue until December 31 of the year in which any Plan has first been
approved by shareholders and through December 31 of each year thereafter
provided such continuance is specifically approved at least annually by a
vote of a majority of (i) the Fund's Directors/Trustees and (ii) the
Qualified Directors/Trustees cast in person at a meeting called for the
purpose of voting on such approval and provided further that the Service
Organization shall not have notified Seligman Financial Services in writing
at least 60 days prior to the anniversary date of the previous continuance
that it does not desire such continuance. This Agreement may be terminated
at any time without payment of any penalty with respect to any of the Funds
by vote of a majority of the Qualified Directors/Trustees, or by vote of a
majority of the outstanding voting securities of the particular Fund or
class or series of a Fund, on 60 days' written notice to the Service
Organization and Seligman Financial Services. Notwithstanding anything
contained
5
<PAGE>
herein, in the event that any of the Plans shall be terminated or any of
the Plans or any part thereof shall be found invalid or ordered terminated
by any regulatory or judicial authority, or the Service Organization shall
fail to perform the services contemplated by this Agreement, such
determination to be made in good faith by Seligman Financial Services, this
Agreement may be terminated with respect to such Plan effective upon
receipt of written notice thereof by the Service Organization. This
Agreement will also terminate automatically in the event of its assignment.
9. All communications to Seligman Financial Services shall be sent to it at
its offices, 100 Park Avenue, New York, New York 10017.
Any notice to the Service Organization shall be duly given if mailed or
telegraphed to it at the address shown below.
10. As used in this Agreement, the terms "assignment", "interested person" and
"vote of a majority of the outstanding voting securities" shall have the
respective meanings specified in the Act and in the rules and regulations
thereunder and the term "Qualified Directors/Trustees" shall mean the
Directors/Trustees of a Fund who are not interested persons of the Fund and
have no direct or indirect financial interest in its Plan or in any
agreements related to the Plan.
11. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York. Anything herein to the contrary
notwithstanding, this Agreement shall not be construed to require, or to
impose any duty upon, any of the parties to do anything in violation of any
applicable laws or regulations.
6
<PAGE>
IN WITNESS WHEREOF, Seligman Financial Services and the Service Organization
have caused this Agreement to be executed by their duly authorized offices as of
the date first above written.
SELIGMAN FINANCIAL SERVICES, INC.
By
------------------------------
Stephen J. Hodgdon, President
SERVICE ORGANIZATION
By
------------------------------
Address
-------------------------
---------------------------------
1/95
7
<PAGE>
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION AGREEMENT
EXHIBIT A
<TABLE>
<CAPTION>
The payment schedule for Service Organizations is set forth immediately below:
Average Daily Fees as a Percentage
Net Assets of Each Fund's/Series'
Attributable to Net Assets Attributable
Fund Name Service Organizations to Service Organizations*
Class A Class A Shares/ Class D
Shares Class B Shares+ Shares**
-------------- -------------- -----------
<S> <C> <C> <C>
Seligman Capital Fund, Inc. $100,000 or more .25% 1.00%
Seligman Cash Management Fund, Inc. $100,000 or more -0-/.25% 1.00%
Seligman Common Stock Fund, Inc. $100,000 or more .25% 1.00%
Seligman Communications and Information Fund, Inc. $100,000 or more .25% 1.00%
Seligman Frontier Fund, Inc. $100,000 or more .25% 1.00%
Seligman Growth Fund, Inc. $100,000 or more .25% 1.00%
Seligman Henderson Global Fund Series, Inc:
Seligman Henderson Emerging Markets Growth Fund $100,000 or more .25% 1.00%
Seligman Henderson Global Smaller Companies Fund $100,000 or more .25% 1.00%
Seligman Henderson Global Growth Opportunities Fund $100,000 or more .25% 1.00%
Seligman Henderson Global Technology Fund $100,000 or more .25% 1.00%
Seligman Henderson International Fund $100,000 or more .25% 1.00%
Seligman High Income Fund Series:
U.S. Government Securities Series $100,000 or more .25% 1.00%
High-Yield Bond Series $100,000 or more .25% 1.00%
Seligman Income Fund, Inc. $100,000 or more .25% 1.00%
Seligman New Jersey Municipal Fund, Inc. $100,000 or more .25% 1.00%
Seligman Pennsylvania Municipal Fund Series $100,000 or more .25% 1.00%
Seligman Municipal Fund Series, Inc:
National Series $100,000 or more .10% 1.00%
Colorado Series $100,000 or more .10% 1.00%
Georgia Series $100,000 or more .10% 1.00%
Louisiana Series $100,000 or more .10% 1.00%
Maryland Series $100,000 or more .10% 1.00%
Massachusetts Series $100,000 or more .10% 1.00%
Michigan Series $100,000 or more .10% 1.00%
Minnesota Series $100,000 or more .10% 1.00%
Missouri Series $100,000 or more .10% 1.00%
New York Series $100,000 or more .10% 1.00%
Ohio Series $100,000 or more .10% 1.00%
Oregon Series $100,000 or more .10% 1.00%
South Carolina Series $100,000 or more .10% 1.00%
Seligman Municipal Series Trust:
California Municipal Quality Series $100,000 or more .10% 1.00%
California Municipal High-Yield Series $100,000 or more .10% 1.00%
Florida Municipal Series $100,000 or more .25% 1.00%
North Carolina Municipal Series $100,000 or more .25% 1.00%
</TABLE>
8
<PAGE>
November 21, 1996
* Included in each of the percentages above is the service fee (as defined in
the National Association of Securities Dealers, Inc. Rules of Fair Practice)
with respect to each class of shares referred to in paragraph 1 of this
Agreement. Except as provided in Footnote ** below, Seligman Financial Services
shall pay the fees provided for above to the Service Organization quarterly.
** At or promptly after the time of sale of any Class D Shares, a Service
Organization shall be paid 1.00% of the net asset value of the Class D Shares
sold by it. The difference between .75% and the amount paid is comprised of the
service fee referred to in paragraph 1 of this Agreement for services to be
provided to Class D shareholders over the course of the one year period
immediately following the sale.
+ Class B Shares are not available for the Seligman New Jersey Municipal Fund,
Inc., Seligman Pennsylvania Municipal Fund Series or any Series of Seligman
Municipal Fund Series, Inc. or Seligman Municipal Series Trust.
9
SELIGMAN MUNICIPAL FUND SERIES, INC.
GEORGIA CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.75% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
99.40% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60% *6.00% ) = 43.22%
4.75% *99.40% 4.75% * .60%
TEY = - ----- + - ---- = 8.36%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
GEORGIA CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.09% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
99.40% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60% *6.00% ) = 43.22%
4.09 %*99.40% 4.09% * .60%
TEY = - ----- + - ---- = 7.20%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
COLORADO CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
CO
4.39% - SEC Yield of Fund
39.60% - Federal tax rate
5.00% - State tax rate
100.00% - Federal tax exempt
98.61% - State tax exempt
III) Calculations:
MR = ( 39.60% + 5.00% ) - ( 39.60% * 5.00% )=0 42.62%
4.39% * 98.61% 4.39% * 1.39%
TEY = - ----- + - ---- = 7.65%
(1 - 42.62%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
COLORADO CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
CO
3.69% - SEC Yield of Fund
39.60% - Federal tax rate
5.00% - State tax rate
100.00% - Federal tax exempt
98.61% - State tax exempt
III) Calculations:
MR = ( 39.60% + 5.00% ) - ( 39.60% * 5.00% )=0 42.62%
3.69% * 98.61% 3.69% * 1.39%
TEY = - ----- + - ---- = 6.43%
(1 - 42.62%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MARYLAND CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.59% - Yield of Fund
39.60% - Federal tax rate
5.00% - State tax rate
100.00% - Federal tax exempt
98.67% - State tax exempt
III) Calculations:
MR = ( 39.60% + 5.00% ) - ( 39.60% * 5.00% ) = 42.62%
4.59% * 98.67% 4.59% * 1.33%
TEY = - ----- + - ---- = 7.99%
(1 - 42.62%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MARYLAND CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.91% - Yield of Fund
39.60% - Federal tax rate
5.00% - State tax rate
100.00% - Federal tax exempt
98.67% - State tax exempt
III) Calculations:
MR = ( 39.60% + 5.00% ) - ( 39.60% * 5.00% ) = 42.62%
3.91% * 98.67% 3.91% * 1.33%
TEY = - ----- + - ---- = 6.81%
(1 - 42.62%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MASSACHUSETTS CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.83% - Yield of Fund
39.60% - Federal tax rate
12.00% - State tax rate
100.00% - Federal tax exempt
99.24% - State tax exempt
III) Calculations:
MR = ( 39.60% + 12.00% ) - ( 39.60% * 12.00%) = 46.85%
4.83% * 99.24% 4.83% * 0.76%
TEY = - ----- + - ---- = 9.08%
(1 - 46.85%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MASSACHUSETTS CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.17% - Yield of Fund
39.60% - Federal tax rate
12.00% - State tax rate
100.00% - Federal tax exempt
99.24% - State tax exempt
III) Calculations:
MR = ( 39.60% + 12.00% ) - ( 39.60% * 12.00%) = 46.85%
4.17% * 99.24% 4.17% * 0.76%
TEY = - ----- + - ---- = 7.84%
(1 - 46.85%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
NATIONAL CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.92% - Yield of Fund
39.60% - Federal tax rate
0.00% - State tax rate
100.00% - Federal tax exempt
100.00% - State tax exempt
III) Calculations:
MR = ( 39.60% + 0.00% ) - ( 39.60% * 0.00% ) = 39.60%
4.92% * 100.00% 4.92% * 00.00%
TEY = - ----- + - ---- = 8.15%
(1 - 39.60%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
NATIONAL CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.24% - Yield of Fund
39.60% - Federal tax rate
0.00% - State tax rate
100.00% - Federal tax exempt
100.00% - State tax exempt
III) Calculations:
MR = ( 39.60% + 0.00% ) - ( 39.60% * 0.00% ) = 39.60%
4.24% * 100.00% 4.24% * 00.00%
TEY = - ----- + - ---- = 7.02%
(1 - 39.60%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
LOUISIANA CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.63% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
98.91% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60% *6.00% ) = 43.22%
4.63% * 98.91% 4.63% * 1.09%
TEY = - ----- + - ---- = 8.15%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
LOUISIANA CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.97% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
98.91% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60% *6.00% ) = 43.22%
3.97% * 98.91% 3.97% * 1.09%
TEY = - ----- + - ---- = 6.99%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MICHIGAN CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.77% - Yield of Fund
39.60% - Federal tax rate
4.40% - State tax rate
100.00% - Federal tax exempt
99.75% - State tax exempt
III) Calculations:
MR = ( 39.60% + 4.40% ) - ( 39.60% * 4.40% ) = 42.26%
4.77% * 99.75% 4.77% * .25%
TEY = - ----- + - ---- = 8.26%
(1 - 42.26%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MICHIGAN CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.11% - Yield of Fund
39.60% - Federal tax rate
4.40% - State tax rate
100.00% - Federal tax exempt
99.75% - State tax exempt
III) Calculations:
MR = ( 39.60% + 4.40% ) - ( 39.60% * 4.40% ) = 42.26%
4.11% * 99.75% 4.11% * .25%
TEY = - ----- + - ---- = 7.12%
(1 - 42.26%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MINNESOTA CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.26% - Yield of Fund
39.60% - Federal tax rate
8.50% - State tax rate
100.00% - Federal tax exempt
98.51% - State tax exempt
III) Calculations:
MR = ( 39.60% + 8.500% ) - ( 39.60% * 8.500%) = 44.73%
4.26% * 98.51% 4.26% * 1.49%
TEY = - ----- + - ---- = 7.70%
(1 - 44.73%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MINNESOTA CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.57% - Yield of Fund
39.60% - Federal tax rate
8.50% - State tax rate
100.00% - Federal tax exempt
98.51% - State tax exempt
III) Calculations:
MR = ( 39.60% + 8.500% ) - ( 39.60% * 8.500%) = 44.73%
3.57% * 98.51% 3.57% * 1.49%
TEY = - ----- + - ---- = 6.45%
(1 - 44.73%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
MISSOURI CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.35% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
98.09% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60 % *6.00% ) = 43.22%
4.35% * 98.09% 4.35% *1.91%
TEY = - ----- + - ---- = 7.65%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN TAX-EXEMPT FUND SERIES, INC.
MISSOURI CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.68% - Yield of Fund
39.60% - Federal tax rate
6.00% - State tax rate
100.00% - Federal tax exempt
98.09% - State tax exempt
III) Calculations:
MR = ( 39.60% + 6.00% ) - ( 39.60 % *6.00% ) = 43.22%
3.68% * 98.09% 3.68% *1.91%
TEY = - ----- + - ---- = 6.47%
(1 - 43.22%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
NEW YORK CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.88% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.73% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% *7.00% ) = 43.83%
4.88% * 99.73% 4.88% * 0.27%
TEY = - ----- + - ---- = 8.69%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
NEW YORK CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.22% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.73% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% *7.00% ) = 43.83%
4.22% * 99.73% 4.22% * 0.27%
TEY = - ----- + - ---- = 7.51%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
OHIO CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.65% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.33% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% *7.00% ) = 43.83%
4.65% * 99.33% 4.65% * .67%
TEY = - ----- + - ---- = 8.27%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
OHIO CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.98% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.33% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% *7.00% ) = 43.83%
3.98% * 99.33% 3.98% * .67%
TEY = - ----- + - ---- = 7.08%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
OREGON CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.45% - Yield of Fund
39.60% - Federal tax rate
9.00% - State tax rate
100.00% - Federal tax exempt
97.58% - State tax exempt
III) Calculations:
MR = ( 39.60% + 9.00% ) - ( 39.60% *9.00% ) = 45.04%
4.45% * 97.58% 4.45% * 2.42%
TEY = - ----- + - ---- = 8.08%
(1 - 45.04%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
OREGON CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.78% - Yield of Fund
39.60% - Federal tax rate
9.00% - State tax rate
100.00% - Federal tax exempt
97.58% - State tax exempt
III) Calculations:
MR = ( 39.60% + 9.00% ) - ( 39.60% *9.00% ) = 45.04%
3.78% * 97.58% 3.78% * 2.42%
TEY = - ;----- +- ---- = 6.86%
(1 - 45.04%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
SOUTH CAROLINA CLASS "A"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
4.60% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.69% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% * 7.00% ) = 43.83%
4.60% * 99.69% 4.60% * 0.31%
TEY = - ----- + - ---- = 8.19%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN MUNICIPAL FUND SERIES, INC.
SOUTH CAROLINA CLASS "D"
Tax Equivalent Yield
12/31/96
I) Formulas used in Calculation:
EY SY TY
A) TEY = - + - + -
1 - MR 1 - FT 1
B) MR = (FT + ST) - (FT * ST)
II) Where: TEY = tax equivalent yield
EY = fully exempt portion of yield
SY = state taxable portion of yield (federally exempt)
TY = taxable portion of yield
MR = maximum tax rate
FT = Federal Tax Rate
ST = State Tax Rate
3.94% - Yield of Fund
39.60% - Federal tax rate
7.00% - State tax rate
100.00% - Federal tax exempt
99.69% - State tax exempt
III) Calculations:
MR = ( 39.60% + 7.00% ) - ( 39.60% * 7.00% ) = 43.83%
3.94% * 99.69% 3.94% * 0.31%
TEY = - ----- + - ---- = 7.01%
(1 - 43.83%) (1 - 39.60%) =
<PAGE>
SELIGMAN COLORADO MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $7.42
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ----------- --------- --- ----- ------- -------- --------- -----------
30-Sep-86 7.07 134.771 134.771 $952.83
17-Oct-86 0.026000 G 7.08 0.047 0.495 135.266 $957.68
17-Oct-86 0.042008 D 7.08 0.047 0.800 136.066 $963.35
31-Oct-86 0.000000 7.13 0.085 0.000 136.066 $970.15
17-Nov-86 0.037531 D 7.16 0.132 0.713 136.779 $979.34
30-Nov-86 0.000000 7.22 0.167 0.000 136.779 $987.54
17-Dec-86 0.039348 D 7.16 0.214 0.752 137.531 $984.72
31-Dec-86 7.17 0.252 0.000 137.531 $986.10
19-Jan-87 0.042585 D 7.26 0.304 0.807 138.338 $1,004.33
31-Jan-87 0.000000 7.31 0.337 0.000 138.338 $1,011.25
17-Feb-87 0.036723 D 7.29 0.384 0.697 139.035 $1,013.57
28-Feb-87 0.000000 7.31 0.414 0.000 139.035 $1,016.35
17-Mar-87 0.034975 D 7.31 0.460 0.665 139.700 $1,021.21
31-Mar-87 7.21 0.499 0.000 139.700 $1,007.24
20-Apr-87 0.042903 D 6.80 0.553 0.881 140.581 $955.95
30-Apr-87 0.000000 6.74 0.581 0.000 140.581 $947.52
18-May-87 0.035616 D 6.70 0.630 0.747 141.328 $946.90
31-May-87 0.000000 6.64 0.666 0.000 141.328 $938.42
17-Jun-87 0.038273 D 6.78 0.712 0.798 142.126 $963.61
30-Jun-87 6.81 0.748 0.000 142.126 $967.88
17-Jul-87 0.040329 D 6.85 0.795 0.837 142.963 $979.30
31-Jul-87 0.000000 6.83 0.833 0.000 142.963 $976.44
17-Aug-87 0.036602 D 6.81 0.879 0.768 143.731 $978.81
31-Aug-87 0.000000 6.81 0.918 0.000 143.731 $978.81
17-Sep-87 0.039204 D 6.50 0.964 0.867 144.598 $939.89
30-Sep-87 6.38 1.000 0.000 144.598 $922.54
19-Oct-87 0.040000 G 5.90 1.052 0.980 145.578 $858.91
19-Oct-87 0.040525 D 5.90 1.052 0.993 146.571 $864.77
31-Oct-87 0.000000 6.34 1.085 0.000 146.571 $929.26
17-Nov-87 0.036525 D 6.54 1.132 0.819 147.390 $963.93
30-Nov-87 0.000000 6.54 1.167 0.000 147.390 $963.93
17-Dec-87 0.037551 D 6.52 1.214 0.849 148.239 $966.52
31-Dec-87 6.61 1.252 0.000 148.239 $979.86
18-Jan-88 0.038662 D 6.73 1.301 0.852 149.091 $1,003.38
31-Jan-88 0.000000 6.90 1.337 0.000 149.091 $1,028.73
17-Feb-88 0.037036 D 6.92 1.384 0.798 149.889 $1,037.23
29-Feb-88 0.000000 6.95 1.416 0.000 149.889 $1,041.73
17-Mar-88 0.037150 D 6.81 1.463 0.818 150.707 $1,026.31
31-Mar-88 6.74 1.501 0.000 150.707 $1,015.77
18-Apr-88 0.040535 D 6.72 1.551 0.909 151.616 $1,018.86
30-Apr-88 0.000000 6.76 1.584 0.000 151.616 $1,024.92
17-May-88 0.036448 D 6.75 1.630 0.819 152.435 $1,028.94
31-May-88 0.000000 6.70 1.668 0.000 152.435 $1,021.31
19-Jun-88 0.041568 D 6.78 1.721 0.935 153.370 $1,039.85
30-Jun-88 6.78 1.751 0.000 153.370 $1,039.85
18-Jul-88 0.036285 D 6.76 1.800 0.823 154.193 $1,042.34
31-Jul-88 0.000000 6.77 1.836 0.000 154.193 $1,043.89
17-Aug-88 0.038318 D 6.74 1.882 0.877 155.070 $1,045.17
31-Aug-88 0.000000 6.76 1.921 0.000 155.070 $1,048.27
19-Sep-88 0.042059 D 6.86 1.973 0.951 156.021 $1,070.30
30-Sep-88 6.87 2.003 0.000 156.021 $1,071.86
17-Oct-88 0.035414 D 6.95 2.049 0.795 156.816 $1,089.87
31-Oct-88 0.000000 7.00 2.088 0.000 156.816 $1,097.71
17-Nov-88 0.038676 D 6.93 2.134 0.875 157.691 $1,092.80
30-Nov-88 0.000000 6.88 2.170 0.000 157.691 $1,084.91
19-Dec-88 0.040384 D 6.87 2.222 0.927 158.618 $1,089.71
31-Dec-88 6.96 2.255 0.000 158.618 $1,103.98
17-Jan-89 0.037077 D 7.03 2.301 0.837 159.455 $1,120.97
31-Jan-89 0.000000 7.08 2.340 0.000 159.455 $1,128.94
20-Feb-89 0.042777 D 6.98 2.395 0.977 160.432 $1,119.82
28-Feb-89 0.000000 6.95 2.416 0.000 160.432 $1,115.00
19-Mar-89 0.033993 D 6.92 2.468 0.788 161.220 $1,115.64
31-Mar-89 6.92 2.501 0.000 161.220 $1,115.64
17-Apr-89 0.036768 D 6.97 2.548 0.850 162.070 $1,129.63
30-Apr-89 0.000000 7.05 2.584 0.000 162.070 $1,142.59
17-May-89 0.037675 D 7.10 2.630 0.860 162.930 $1,156.80
31-May-89 0.000000 7.14 2.668 0.000 162.930 $1,163.32
19-Jun-89 0.041479 D 7.16 2.721 0.944 163.874 $1,173.34
30-Jun-89 7.19 2.751 0.000 163.874 $1,178.25
17-Jul-89 0.035018 D 7.20 2.797 0.797 164.671 $1,185.63
31-Jul-89 0.000000 7.23 2.836 0.000 164.671 $1,190.57
17-Aug-89 0.039126 D 7.12 2.882 0.905 165.576 $1,178.90
31-Aug-89 7.10 2.921 0.000 165.576 $1,175.59
18-Sep-89 0.041377 D 7.10 2.970 0.965 166.541 $1,182.44
30-Sep-89 7.06 3.003 0.000 166.541 $1,175.78
17-Oct-89 0.036260 D 7.12 3.049 0.848 167.389 $1,191.81
31-Oct-89 7.09 3.088 0.000 167.389 $1,186.79
17-Nov-89 0.040506 D 7.13 3.134 0.951 168.340 $1,200.26
30-Nov-89 7.17 3.170 0.000 168.340 $1,207.00
18-Dec-89 0.036390 D 7.19 3.219 0.852 169.192 $1,216.49
31-Dec-89 7.18 3.255 0.000 169.192 $1,214.80
17-Jan-90 0.037384 D 7.14 3.301 0.886 170.078 $1,214.36
31-Jan-90 7.07 3.340 0.000 170.078 $1,202.45
20-Feb-90 0.045123 D 7.07 3.395 1.085 171.163 $1,210.12
28-Feb-90 7.09 3.416 0.000 171.163 $1,213.55
19-Mar-90 0.034573 D 7.02 3.468 0.843 172.006 $1,207.48
31-Mar-90 7.02 3.501 0.000 172.006 $1,207.48
17-Apr-90 0.036557 D 7.01 3.548 0.897 172.903 $1,212.05
30-Apr-90 6.88 3.584 0.000 172.903 $1,189.57
17-May-90 0.037760 D 7.03 3.630 0.929 173.832 $1,222.04
31-May-90 7.04 3.668 0.000 173.832 $1,223.78
18-Jun-90 0.038509 D 7.05 3.718 0.950 174.782 $1,232.21
30-Jun-90 7.07 3.751 0.000 174.782 $1,235.71
17-Jul-90 0.036119 D 7.10 3.797 0.889 175.671 $1,247.26
31-Jul-90 7.13 3.836 0.000 175.671 $1,252.53
17-Aug-90 0.040638 D 7.02 3.882 1.017 176.688 $1,240.35
31-Aug-90 6.95 3.921 0.000 176.688 $1,227.98
17-Sep-90 0.036148 D 6.96 3.967 0.918 177.606 $1,236.14
30-Sep-90 6.91 4.003 0.000 177.606 $1,227.26
17-Oct-90 0.037627 D 6.95 4.049 0.962 178.568 $1,241.05
31-Oct-90 7.00 4.088 0.000 178.568 $1,249.98
16-Nov-90 0.040329 D 7.09 4.132 1.016 179.584 $1,273.25
30-Nov-90 7.10 4.170 0.000 179.584 $1,275.05
17-Dec-90 0.036066 D 7.08 4.216 0.915 180.499 $1,277.93
31-Dec-90 7.07 4.255 0.000 180.499 $1,276.13
17-Jan-91 0.037093 D 7.08 4.301 0.946 181.445 $1,284.63
31-Jan-91 7.11 4.340 0.000 181.445 $1,290.07
15-Feb-91 0.038465 D 7.20 4.381 0.969 182.414 $1,313.38
28-Feb-91 7.14 4.416 0.000 182.414 $1,302.44
15-Mar-91 0.032610 D 7.12 4.458 0.835 183.249 $1,304.73
31-Mar-91 7.08 4.501 0.000 183.249 $1,297.40
17-Apr-91 0.036735 D 7.12 4.548 0.945 184.194 $1,311.46
30-Apr-91 7.12 4.584 0.000 184.194 $1,311.46
17-May-91 0.037695 D 7.14 4.630 0.972 185.166 $1,322.09
31-May-91 7.15 4.668 0.000 185.166 $1,323.94
17-Jun-91 0.034160 D 7.08 4.715 0.893 186.059 $1,317.30
30-Jun-91 7.10 4.751 0.000 186.059 $1,321.02
17-Jul-91 0.035945 D 7.13 4.797 0.938 186.997 $1,333.29
31-Jul-91 7.16 4.836 0.000 186.997 $1,338.90
16-Aug-91 0.038399 D 7.19 4.879 0.999 187.996 $1,351.69
31-Aug-91 7.19 4.921 0.000 187.996 $1,351.69
17-Sep-91 0.036031 D 7.22 4.967 0.938 188.934 $1,364.10
30-Sep-91 7.22 5.003 0.000 188.934 $1,364.10
17-Oct-91 0.035868 D 7.22 5.049 0.939 189.873 $1,370.88
31-Oct-91 7.21 5.088 0.000 189.873 $1,368.98
15-Nov-91 0.036703 D 7.22 5.129 0.965 190.838 $1,377.85
30-Nov-91 7.19 5.170 0.000 190.838 $1,372.13
17-Dec-91 0.034890 D 7.20 5.216 0.925 191.763 $1,380.69
31-Dec-91 7.28 5.255 0.000 191.763 $1,396.03
17-Jan-92 0.037743 D 7.28 5.301 0.994 192.757 $1,403.27
31-Jan-92 7.23 5.340 0.000 192.757 $1,393.63
14-Feb-92 0.033056 D 7.16 5.378 0.890 193.647 $1,386.51
29-Feb-92 7.18 5.419 0.000 193.647 $1,390.39
17-Mar-92 0.033176 D 7.14 5.466 0.900 194.547 $1,389.07
31-Mar-92 7.16 5.504 0.000 194.547 $1,392.96
16-Apr-92 0.037769 D 7.19 5.548 1.022 195.569 $1,406.14
30-Apr-92 7.16 5.586 0.000 195.569 $1,400.27
15-May-92 0.031974 D 7.21 5.627 0.867 196.436 $1,416.30
31-May-92 7.21 5.671 0.000 196.436 $1,416.30
17-Jun-92 0.035861 D 7.25 5.718 0.972 197.408 $1,431.21
30-Jun-92 7.29 5.753 0.000 197.408 $1,439.10
17-Jul-92 0.036773 D 7.39 5.800 0.982 198.390 $1,466.10
31-Jul-92 7.47 5.838 0.000 198.390 $1,481.97
17-Aug-92 0.032442 D 7.39 5.885 0.871 199.261 $1,472.54
31-Aug-92 7.34 5.923 0.000 199.261 $1,462.58
17-Sep-92 0.035882 D 7.35 5.970 0.973 200.234 $1,471.72
30-Sep-92 7.34 6.005 0.000 200.234 $1,469.72
16-Oct-92 0.034106 D 7.30 6.049 0.936 201.170 $1,468.54
30-Oct-92 7.20 6.088 0.000 201.170 $1,448.42
17-Nov-92 0.074000 G 7.25 6.137 2.053 203.223 $1,473.37
17-Nov-92 0.033615 D 7.25 6.137 0.933 204.156 $1,480.13
30-Nov-92 7.29 6.173 0.000 204.156 $1,488.30
17-Dec-92 0.032443 D 7.31 6.219 0.906 205.062 $1,499.00
31-Dec-92 0.000000 7.33 6.258 0.000 205.062 $1,503.10
15-Jan-93 0.032814 D 7.34 6.299 0.917 205.979 $1,511.89
29-Jan-93 7.38 6.337 0.000 205.979 $1,520.13
17-Feb-93 0.031295 D 7.46 6.389 0.864 206.843 $1,543.05
26-Feb-93 7.60 6.414 0.000 206.843 $1,572.01
17-Mar-93 0.028301 D 7.51 6.466 0.779 207.622 $1,559.24
31-Mar-93 0.000000 7.48 6.504 0.000 207.622 $1,553.01
16-Apr-93 0.033331 D 7.54 6.548 0.918 208.540 $1,572.39
30-Apr-93 7.51 6.586 0.000 208.540 $1,566.14
17-May-93 0.031641 D 7.53 6.633 0.876 209.416 $1,576.90
31-May-93 7.54 6.671 0.000 209.416 $1,579.00
17-Jun-93 0.033658 D 7.58 6.718 0.930 210.346 $1,594.42
30-Jun-93 0.000000 7.62 6.753 0.000 210.346 $1,602.84
16-Jul-93 0.033655 D 7.64 6.797 0.927 211.273 $1,614.13
30-Jul-93 0.000000 7.60 6.836 0.000 211.273 $1,605.67
17-Aug-93 0.032468 D 7.68 6.885 0.893 212.166 $1,629.43
31-Aug-93 0.000000 7.71 6.923 0.000 212.166 $1,635.80
17-Sep-93 0.035699 D 7.76 6.970 0.976 213.142 $1,653.98
30-Sep-93 0.000000 7.76 7.005 0.000 213.142 $1,653.98
15-Oct-93 0.029831 D 7.82 7.047 0.813 213.955 $1,673.13
29-Oct-93 7.74 7.085 0.000 213.955 $1,656.01
17-Nov-93 0.032413 D 7.59 7.137 0.914 214.869 $1,630.86
17-Nov-93 0.079000 G 7.59 7.137 2.227 217.096 $1,647.76
30-Nov-93 0.000000 7.59 7.173 0.000 217.096 $1,647.76
17-Dec-93 0.033124 D 7.65 7.219 0.940 218.036 $1,667.98
31-Dec-93 7.66 7.258 0.000 218.036 $1,670.16
17-Jan-94 0.029790 D 7.66 7.304 0.848 218.884 $1,676.65
31-Jan-94 0.000000 7.73 7.342 0.000 218.884 $1,691.97
17-Feb-94 0.031912 D 7.62 7.389 0.917 219.801 $1,674.88
28-Feb-94 0.000000 7.51 7.419 0.000 219.801 $1,650.71
17-Mar-94 0.028857 D 7.39 7.466 0.858 220.659 $1,630.67
31-Mar-94 0.000000 7.20 7.504 0.000 220.659 $1,588.74
15-Apr-94 0.031027 D 7.20 7.545 0.951 221.610 $1,595.59
29-Apr-94 0.000000 7.19 7.584 0.000 221.610 $1,593.38
17-May-94 0.030532 D 7.21 7.633 0.938 222.548 $1,604.57
31-May-94 7.24 7.671 0.000 222.548 $1,611.25
17-Jun-94 0.033042 D 7.28 7.718 1.010 223.558 $1,627.50
30-Jun-94 0.000000 7.17 7.753 0.000 223.558 $1,602.91
15-Jul-94 0.028334 D 7.22 7.795 0.877 224.435 $1,620.42
29-Jul-94 0.000000 7.27 7.833 0.000 224.435 $1,631.64
17-Aug-94 0.031954 D 7.24 7.885 0.991 225.426 $1,632.08
31-Aug-94 0.000000 7.24 7.923 0.000 225.426 $1,632.08
16-Sep-94 0.033151 D 7.14 7.967 1.047 226.473 $1,617.02
30-Sep-94 0.000000 7.09 8.005 0.000 226.473 $1,605.69
17-Oct-94 0.030105 D 7.08 8.052 0.963 227.436 $1,610.25
31-Oct-94 0.000000 6.92 8.090 0.000 227.436 $1,573.86
17-Nov-94 0.032332 D 6.64 8.137 1.107 228.543 $1,517.53
30-Nov-94 0.000000 6.76 8.173 0.000 228.543 $1,544.95
16-Dec-94 0.033055 D 6.88 8.216 1.098 229.641 $1,579.93
31-Dec-94 0.000000 6.90 8.258 0.000 229.641 $1,584.52
17-Jan-95 0.031915 D 7.00 8.304 1.047 230.688 $1,614.82
31-Jan-95 0.000000 7.07 8.342 0.000 230.688 $1,630.96
17-Feb-95 0.035579 D 7.18 8.389 1.143 231.831 $1,664.55
28-Feb-95 0.000000 7.23 8.419 0.000 231.831 $1,676.14
17-Mar-95 0.028353 D 7.24 8.466 0.908 232.739 $1,685.03
31-Mar-95 0.000000 7.24 8.504 0.000 232.739 $1,685.03
17-Apr-95 0.030390 D 7.29 8.551 0.970 233.709 $1,703.74
28-Apr-95 0.000000 7.21 8.581 0.000 233.709 $1,685.04
17-May-95 0.031417 D 7.34 8.633 1.000 234.709 $1,722.76
31-May-95 0.000000 7.38 8.671 0.000 234.709 $1,732.15
16-Jun-95 0.032864 D 7.31 8.715 1.055 235.764 $1,723.43
30-Jun-95 0.000000 7.27 8.753 0.000 235.764 $1,714.00
17-Jul-95 0.029773 D 7.33 8.800 0.958 236.722 $1,735.17
31-Jul-95 0.000000 7.28 8.838 0.000 236.722 $1,723.34
17-Aug-95 0.032234 D 7.18 8.885 1.063 237.785 $1,707.30
31-Aug-95 0.000000 7.29 8.923 0.000 237.785 $1,733.45
15-Sep-95 0.030681 D 7.35 8.964 0.993 238.778 $1,755.02
30-Sep-95 0.000000 7.30 9.005 0.000 238.778 $1,743.08
17-Oct-95 0.029825 D 7.37 9.052 0.966 239.744 $1,766.91
31-Oct-95 0.000000 7.35 9.090 0.000 239.744 $1,762.12
17-Nov-95 0.032934 D 7.38 9.137 1.070 240.814 $1,777.21
30-Nov-95 0.000000 7.41 9.173 0.000 240.814 $1,784.43
15-Dec-95 0.028393 D 7.41 9.214 0.923 241.737 $1,791.27
29-Dec-95 0.000000 7.47 9.252 0.000 241.737 $1,805.78
31-Dec-95 0.000000 7.47 9.258 0.000 241.737 $1,805.78
17-Jan-96 0.031562 D 7.45 9.304 1.024 242.761 $1,808.57
31-Jan-96 0.000000 7.46 9.342 0.000 242.761 $1,811.00
16-Feb-96 0.033563 D 7.49 9.386 1.088 243.849 $1,826.43
29-Feb-96 0.000000 7.42 9.422 0.000 243.849 $1,809.36
15-Mar-96 0.027445 D 7.24 9.463 0.924 244.773 $1,772.16
29-Mar-96 0.000000 7.29 9.501 0.000 244.773 $1,784.40
31-Mar-96 0.000000 7.29 9.507 0.000 244.773 $1,784.40
17-Apr-96 0.031656 D 7.25 9.553 1.069 245.842 $1,782.35
30-Apr-96 0.000000 7.24 9.589 0.000 245.842 $1,779.90
17-May-96 0.032811 D 7.28 9.636 1.108 246.950 $1,797.80
31-May-96 0.000000 7.23 9.674 0.000 246.950 $1,785.45
17-Jun-96 0.029588 D 7.20 9.721 1.015 247.965 $1,785.35
30-Jun-96 0.000000 7.27 9.756 0.000 247.965 $1,802.71
17-Jul-96 0.030548 D 7.24 9.803 1.046 249.011 $1,802.84
31-Jul-96 7.25 9.841 0.000 249.011 $1,805.33
17-Aug-96 0.032408 D 7.29 9.888 1.107 250.118 $1,823.36
31-Aug-96 7.21 9.926 0.000 250.118 $1,803.35
17-Sep-96 0.030312 D 7.24 9.973 1.047 251.165 $1,818.43
30-Sep-96 0.000000 7.27 10.008 0.000 251.165 $1,825.97
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 6.21%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VA $1,825.97
TOTAL RETURN FOR PERIOD 82.60%
<PAGE>
SELIGMAN GEORGIA MUNICIPAL FUND CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 9.30 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $7.50
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- --------- --------- --- ----- ------- -------- --------- -----------
15-Jun-87 7.14 133.333 133.333 $952.00
30-Jun-87 7.06 0.041 0.000 133.333 $941.33
31-Jul-87 7.00 0.126 0.000 133.333 $933.33
17-Aug-87 0.068006 D 6.99 0.173 1.297 134.630 $941.06
31-Aug-87 6.98 0.211 0.000 134.630 $939.72
17-Sep-87 0.043489 D 6.61 0.258 0.886 135.516 $895.76
30-Sep-87 6.49 0.293 0.000 135.516 $879.50
19-Oct-87 0.043189 D 6.03 0.345 0.971 136.487 $823.02
31-Oct-87 6.51 0.378 0.000 136.487 $888.53
17-Nov-87 0.039845 D 6.73 0.425 0.808 137.295 $924.00
30-Nov-87 6.72 0.460 0.000 137.295 $922.62
17-Dec-87 0.042326 D 6.70 0.507 0.867 138.162 $925.69
31-Dec-87 6.81 0.545 0.000 138.162 $940.88
18-Jan-88 0.045006 D 6.93 0.595 0.897 139.059 $963.68
31-Jan-88 7.12 0.630 0.000 139.059 $990.10
17-Feb-88 0.041394 D 7.16 0.677 0.804 139.863 $1,001.42
29-Feb-88 7.18 0.710 0.000 139.863 $1,004.22
17-Mar-88 0.038910 D 7.02 0.756 0.775 140.638 $987.28
31-Mar-88 6.93 0.795 0.000 140.638 $974.62
18-Apr-88 0.042212 D 6.92 0.844 0.858 141.496 $979.15
30-Apr-88 6.95 0.877 0.000 141.496 $983.40
17-May-88 0.039066 D 6.90 0.923 0.801 142.297 $981.85
31-May-88 6.87 0.962 0.000 142.297 $977.58
19-Jun-88 0.044143 D 6.98 1.014 0.900 143.197 $999.52
30-Jun-88 6.99 1.044 0.000 143.197 $1,000.95
18-Jul-88 0.039224 D 6.97 1.093 0.806 144.003 $1,003.70
31-Jul-88 6.99 1.129 0.000 144.003 $1,006.58
17-Aug-88 0.040709 D 6.96 1.175 0.842 144.845 $1,008.12
31-Aug-88 6.99 1.214 0.000 144.845 $1,012.47
19-Sep-88 0.044821 D 7.08 1.266 0.917 145.762 $1,031.99
30-Sep-88 7.09 1.296 0.000 145.762 $1,033.45
17-Oct-88 0.038652 D 7.17 1.342 0.786 146.548 $1,050.75
31-Oct-88 7.24 1.381 0.000 146.548 $1,061.01
17-Nov-88 0.042410 D 7.14 1.427 0.870 147.418 $1,052.56
17-Nov-88 0.010000 G 7.14 1.427 0.205 147.623 $1,054.03
30-Nov-88 7.11 1.463 0.000 147.623 $1,049.60
19-Dec-88 0.041863 D 7.10 1.515 0.870 148.493 $1,054.30
31-Dec-88 7.20 1.548 0.000 148.493 $1,069.15
17-Jan-89 0.038192 D 7.26 1.595 0.781 149.274 $1,083.73
31-Jan-89 7.32 1.633 0.000 149.274 $1,092.69
20-Feb-89 0.044314 D 7.20 1.688 0.919 150.193 $1,081.39
28-Feb-89 7.17 1.710 0.000 150.193 $1,076.88
19-Mar-89 0.034957 D 7.14 1.762 0.735 150.928 $1,077.63
31-Mar-89 7.15 1.795 0.000 150.928 $1,079.14
17-Apr-89 0.036399 D 7.22 1.841 0.761 151.689 $1,095.19
30-Apr-89 7.30 1.877 0.000 151.689 $1,107.33
17-May-89 0.040439 D 7.36 1.923 0.833 152.522 $1,122.56
31-May-89 7.39 1.962 0.000 152.522 $1,127.14
19-Jun-89 0.043924 D 7.42 2.014 0.903 153.425 $1,138.41
30-Jun-89 7.45 2.044 0.000 153.425 $1,143.02
17-Jul-89 0.036107 D 7.46 2.090 0.743 154.168 $1,150.09
31-Jul-89 7.50 2.129 0.000 154.168 $1,156.26
17-Aug-89 0.041478 D 7.38 2.175 0.866 155.034 $1,144.15
31-Aug-89 7.36 2.214 0.000 155.034 $1,141.05
18-Sep-89 0.042521 D 7.35 2.263 0.897 155.931 $1,146.09
30-Sep-89 7.30 2.296 0.000 155.931 $1,138.30
17-Oct-89 0.037828 D 7.36 2.342 0.801 156.732 $1,153.55
31-Oct-89 7.33 2.381 0.000 156.732 $1,148.85
17-Nov-89 0.015000 G 7.36 2.427 0.319 157.051 $1,155.90
17-Nov-89 0.042562 D 7.36 2.427 0.906 157.957 $1,162.56
30-Nov-89 7.39 2.463 0.000 157.957 $1,167.30
18-Dec-89 0.036742 D 7.41 2.512 0.783 158.740 $1,176.26
31-Dec-89 7.40 2.548 0.000 158.740 $1,174.68
17-Jan-90 0.037500 D 7.35 2.595 0.810 159.550 $1,172.69
31-Jan-90 7.28 2.633 0.000 159.550 $1,161.52
20-Feb-90 0.045803 D 7.31 2.688 1.000 160.550 $1,173.62
28-Feb-90 7.32 2.710 0.000 160.550 $1,175.23
19-Mar-90 0.036593 D 7.28 2.762 0.807 161.357 $1,174.68
31-Mar-90 7.28 2.795 0.000 161.357 $1,174.68
17-Apr-90 0.038622 D 7.27 2.841 0.857 162.214 $1,179.30
30-Apr-90 7.14 2.877 0.000 162.214 $1,158.21
17-May-90 0.039501 D 7.31 2.923 0.877 163.091 $1,192.20
31-May-90 7.32 2.962 0.000 163.091 $1,193.83
18-Jun-90 0.042435 D 7.32 3.011 0.945 164.036 $1,200.74
30-Jun-90 7.32 3.044 0.000 164.036 $1,200.74
17-Jul-90 0.039056 D 7.36 3.090 0.870 164.906 $1,213.71
31-Jul-90 7.40 3.129 0.000 164.906 $1,220.30
17-Aug-90 0.043979 D 7.29 3.175 0.995 165.901 $1,209.42
31-Aug-90 7.21 3.214 0.000 165.901 $1,196.15
17-Sep-90 0.037461 D 7.24 3.260 0.858 166.759 $1,207.34
30-Sep-90 7.18 3.296 0.000 166.759 $1,197.33
17-Oct-90 0.039015 D 7.22 3.342 0.901 167.660 $1,210.51
31-Oct-90 7.29 3.381 0.000 167.660 $1,222.24
16-Nov-90 0.006000 G 7.41 3.425 0.136 167.796 $1,243.37
16-Nov-90 0.041653 D 7.41 3.425 0.942 168.738 $1,250.35
30-Nov-90 7.43 3.463 0.000 168.738 $1,253.72
17-Dec-90 0.039529 D 7.42 3.510 0.899 169.637 $1,258.71
31-Dec-90 7.41 3.548 0.000 169.637 $1,257.01
17-Jan-91 0.041087 D 7.44 3.595 0.937 170.574 $1,269.07
31-Jan-91 7.47 3.633 0.000 170.574 $1,274.19
15-Feb-91 0.040468 D 7.55 3.674 0.914 171.488 $1,294.73
28-Feb-91 7.45 3.710 0.000 171.488 $1,277.59
15-Mar-91 0.034193 D 7.44 3.751 0.788 172.276 $1,281.73
31-Mar-91 7.43 3.795 0.000 172.276 $1,280.01
17-Apr-91 0.040050 D 7.49 3.841 0.921 173.197 $1,297.25
30-Apr-91 7.50 3.877 0.000 173.197 $1,298.98
17-May-91 0.041831 D 7.51 3.923 0.965 174.162 $1,307.96
31-May-91 7.53 3.962 0.000 174.162 $1,311.44
17-Jun-91 0.037087 D 7.42 4.008 0.871 175.033 $1,298.74
30-Jun-91 7.46 4.044 0.000 175.033 $1,305.75
17-Jul-91 0.038702 D 7.50 4.090 0.903 175.936 $1,319.52
31-Jul-91 7.52 4.129 0.000 175.936 $1,323.04
16-Aug-91 0.041571 D 7.56 4.173 0.967 176.903 $1,337.39
31-Aug-91 7.56 4.214 0.000 176.903 $1,337.39
17-Sep-91 0.038126 D 7.59 4.260 0.889 177.792 $1,349.44
30-Sep-91 7.63 4.296 0.000 177.792 $1,356.55
17-Oct-91 0.037775 D 7.66 4.342 0.877 178.669 $1,368.60
31-Oct-91 7.64 4.381 0.000 178.669 $1,365.03
15-Nov-91 0.031000 G 7.62 4.422 0.727 179.396 $1,367.00
15-Nov-91 0.038439 D 7.62 4.422 0.901 180.297 $1,373.86
30-Nov-91 7.58 4.463 0.000 180.297 $1,366.65
17-Dec-91 0.036525 D 7.61 4.510 0.865 181.162 $1,378.64
31-Dec-91 7.70 4.548 0.000 181.162 $1,394.95
17-Jan-92 0.040900 D 7.71 4.595 0.961 182.123 $1,404.17
31-Jan-92 7.66 4.633 0.000 182.123 $1,395.06
14-Feb-92 0.037225 D 7.60 4.671 0.892 183.015 $1,390.91
29-Feb-92 7.63 4.712 0.000 183.015 $1,396.40
17-Mar-92 0.036919 D 7.56 4.759 0.894 183.909 $1,390.35
31-Mar-92 7.58 4.797 0.000 183.909 $1,394.03
16-Apr-92 0.041498 D 7.64 4.841 0.999 184.908 $1,412.70
30-Apr-92 7.60 4.879 0.000 184.908 $1,405.30
15-May-92 0.035784 D 7.67 4.921 0.863 185.771 $1,424.86
31-May-92 7.66 4.964 0.000 185.771 $1,423.01
17-Jun-92 0.039295 D 7.71 5.011 0.947 186.718 $1,439.60
30-Jun-92 7.77 5.047 0.000 186.718 $1,450.80
17-Jul-92 0.040827 D 7.91 5.093 0.964 187.682 $1,484.56
31-Jul-92 8.02 5.132 0.000 187.682 $1,505.21
17-Aug-92 0.037015 D 7.91 5.178 0.878 188.560 $1,491.51
31-Aug-92 7.85 5.216 0.000 188.560 $1,480.20
17-Sep-92 0.038249 D 7.86 5.263 0.918 189.478 $1,489.30
30-Sep-92 7.85 5.299 0.000 189.478 $1,487.40
16-Oct-92 0.037913 D 7.79 5.342 0.922 190.400 $1,483.22
30-Oct-92 7.66 5.381 0.000 190.400 $1,458.46
17-Nov-92 0.037120 D 7.78 5.430 0.908 191.308 $1,488.38
17-Nov-92 0.041000 G 7.78 5.430 1.003 192.311 $1,496.18
30-Nov-92 7.81 5.466 0.000 192.311 $1,501.95
17-Dec-92 0.036264 D 7.83 5.512 0.891 193.202 $1,512.77
31-Dec-92 0.000000 7.87 5.551 0.000 193.202 $1,520.50
15-Jan-93 0.037356 D 7.87 5.592 0.917 194.119 $1,527.72
29-Jan-93 7.90 5.630 0.000 194.119 $1,533.54
17-Feb-93 0.036487 D 8.01 5.682 0.884 195.003 $1,561.97
26-Feb-93 8.18 5.707 0.000 195.003 $1,595.12
17-Mar-93 0.033521 D 8.03 5.759 0.814 195.817 $1,572.41
31-Mar-93 0.000000 7.99 5.797 0.000 195.817 $1,564.58
16-Apr-93 0.038236 D 8.10 5.841 0.924 196.741 $1,593.60
30-Apr-93 8.06 5.879 0.000 196.741 $1,585.73
17-May-93 0.034298 D 8.08 5.926 0.835 197.576 $1,596.41
31-May-93 8.05 5.964 0.000 197.576 $1,590.49
17-Jun-93 0.036520 D 8.09 6.011 0.892 198.468 $1,605.61
30-Jun-93 0.000000 8.15 6.047 0.000 198.468 $1,617.51
16-Jul-93 0.035729 D 8.19 6.090 0.866 199.334 $1,632.55
30-Jul-93 0.000000 8.14 6.129 0.000 199.334 $1,622.58
17-Aug-93 0.034145 D 8.28 6.178 0.822 200.156 $1,657.29
31-Aug-93 0.000000 8.34 6.216 0.000 200.156 $1,669.30
17-Sep-93 0.038378 D 8.42 6.263 0.912 201.068 $1,692.99
30-Sep-93 0.000000 8.43 6.299 0.000 201.068 $1,695.00
15-Oct-93 0.032059 D 8.51 6.340 0.757 201.825 $1,717.53
29-Oct-93 8.38 6.378 0.000 201.825 $1,691.29
17-Nov-93 0.035615 D 8.19 6.430 0.878 202.703 $1,660.14
17-Nov-93 0.089000 G 8.19 6.430 2.193 204.896 $1,678.10
30-Nov-93 0.000000 8.13 6.466 0.000 204.896 $1,665.80
17-Dec-93 0.036307 D 8.22 6.512 0.905 205.801 $1,691.68
31-Dec-93 0.000000 8.29 6.551 0.000 205.801 $1,706.09
17-Jan-94 0.033034 D 8.26 6.597 0.823 206.624 $1,706.71
31-Jan-94 0.000000 8.36 6.636 0.000 206.624 $1,727.38
17-Feb-94 0.035265 D 8.20 6.682 0.889 207.513 $1,701.61
28-Feb-94 0.000000 8.04 6.712 0.000 207.513 $1,668.40
17-Mar-94 0.031656 D 7.91 6.759 0.830 208.343 $1,647.99
31-Mar-94 0.000000 7.63 6.797 0.000 208.343 $1,589.66
15-Apr-94 0.035604 D 7.62 6.838 0.973 209.316 $1,594.99
29-Apr-94 0.000000 7.63 6.877 0.000 209.316 $1,597.08
17-May-94 0.034126 D 7.61 6.926 0.939 210.255 $1,600.04
31-May-94 7.68 6.964 0.000 210.255 $1,614.76
17-Jun-94 0.037849 D 7.73 7.011 1.029 211.284 $1,633.23
30-Jun-94 0.000000 7.57 7.047 0.000 211.284 $1,599.42
15-Jul-94 0.031563 D 7.64 7.088 0.873 212.157 $1,620.88
29-Jul-94 0.000000 7.71 7.126 0.000 212.157 $1,635.73
17-Aug-94 0.034568 D 7.68 7.178 0.955 213.112 $1,636.70
31-Aug-94 0.000000 7.69 7.216 0.000 213.112 $1,638.83
16-Sep-94 0.034937 D 7.55 7.260 0.986 214.098 $1,616.44
30-Sep-94 0.000000 7.48 7.299 0.000 214.098 $1,601.45
17-Oct-94 0.031464 D 7.49 7.345 0.899 214.997 $1,610.33
31-Oct-94 0.000000 7.30 7.384 0.000 214.997 $1,569.48
17-Nov-94 0.034873 D 6.85 7.430 1.095 216.092 $1,480.23
17-Nov-94 0.103000 CG 6.85 7.430 3.233 219.325 $1,502.38
30-Nov-94 0.000000 6.98 7.466 0.000 219.325 $1,530.89
16-Dec-94 0.034500 D 7.13 7.510 1.061 220.386 $1,571.35
31-Dec-94 0.000000 7.15 7.551 0.000 220.386 $1,575.76
17-Jan-95 0.032572 D 7.31 7.597 0.982 221.368 $1,618.20
31-Jan-95 0.000000 7.39 7.636 0.000 221.368 $1,635.91
17-Feb-95 0.036854 D 7.53 7.682 1.083 222.451 $1,675.06
28-Feb-95 0.000000 7.59 7.712 0.000 222.451 $1,688.40
17-Mar-95 0.029469 D 7.62 7.759 0.860 223.311 $1,701.63
31-Mar-95 0.000000 7.60 7.797 0.000 223.311 $1,697.16
17-Apr-95 0.031693 D 7.66 7.844 0.924 224.235 $1,717.64
28-Apr-95 0.000000 7.55 7.874 0.000 224.235 $1,692.97
17-May-95 0.032683 D 7.77 7.926 0.943 225.178 $1,749.63
31-May-95 0.000000 7.86 7.964 0.000 225.178 $1,769.90
16-Jun-95 0.033796 D 7.77 8.008 0.979 226.157 $1,757.24
30-Jun-95 0.000000 7.73 8.047 0.000 226.157 $1,748.19
17-Jul-95 0.030316 D 7.83 8.093 0.876 227.033 $1,777.67
31-Jul-95 0.000000 7.73 8.132 0.000 227.033 $1,754.97
17-Aug-95 0.033181 D 7.63 8.178 0.987 228.020 $1,739.79
31-Aug-95 0.000000 7.79 8.216 0.000 228.020 $1,776.28
15-Sep-95 0.032386 D 7.87 8.258 0.938 228.958 $1,801.90
30-Sep-95 0.000000 7.81 8.299 0.000 228.958 $1,788.16
17-Oct-95 0.031114 D 7.95 8.345 0.896 229.854 $1,827.34
31-Oct-95 0.000000 7.93 8.384 0.000 229.854 $1,822.74
17-Nov-95 0.033691 D 7.94 8.430 0.975 230.829 $1,832.78
17-Nov-95 0.054000 G 7.94 8.430 1.563 232.392 $1,845.19
30-Nov-95 0.000000 8.01 8.466 0.000 232.392 $1,861.46
15-Dec-95 0.029307 D 7.97 8.507 0.855 233.247 $1,858.98
29-Dec-95 0.000000 8.05 8.545 0.000 233.247 $1,877.64
31-Dec-95 0.000000 8.05 8.551 0.000 233.247 $1,877.64
17-Jan-96 0.032392 D 8.03 8.597 0.941 234.188 $1,880.53
31-Jan-96 0.000000 8.06 8.636 0.000 234.188 $1,887.56
16-Feb-96 0.034845 D 8.07 8.679 1.011 235.199 $1,898.06
29-Feb-96 0.000000 7.97 8.715 0.000 235.199 $1,874.54
15-Mar-96 0.028555 D 7.71 8.756 0.871 236.070 $1,820.10
29-Mar-96 0.000000 7.79 8.795 0.000 236.070 $1,838.99
31-Mar-96 0.000000 7.79 8.800 0.000 236.070 $1,838.99
17-Apr-96 0.032987 D 7.74 8.847 1.006 237.076 $1,834.97
30-Apr-96 0.000000 7.72 8.882 0.000 237.076 $1,830.23
17-May-96 0.034448 D 7.77 8.929 1.051 238.127 $1,850.25
31-May-96 0.000000 7.70 8.967 0.000 238.127 $1,833.58
17-Jun-96 0.031129 D 7.65 9.014 0.969 239.096 $1,829.08
30-Jun-96 0.000000 7.76 9.049 0.000 239.096 $1,855.38
17-Jul-96 0.032035 D 7.74 9.096 0.990 240.086 $1,858.27
31-Jul-96 7.79 9.134 0.000 240.086 $1,870.27
16-Aug-96 0.034276 D 7.88 9.178 1.044 241.130 $1,900.10
31-Aug-96 7.76 9.219 0.000 241.130 $1,871.17
17-Sep-96 0.032339 D 7.82 9.266 0.997 242.127 $1,893.43
30-Sep-96 0.000000 7.87 9.301 0.000 242.127 $1,905.54
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 7.18%
N = NUMBER OF YEARS - 9.301
ERV = ENDING REDEEMABLE VA $1,905.54
TOTAL RETURN FOR PERIOD 90.55%
<PAGE>
SELIGMAN LOUISIANA MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $8.33
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ----------- --------- --- ----- ------- -------- --------- -----------
30-Sep-86 7.93 120.048 120.048 $951.98
17-Oct-86 0.050349 D 7.92 0.047 0.763 120.811 $956.82
17-Oct-86 0.083000 G 7.92 0.047 1.258 122.069 $966.79
31-Oct-86 0.000000 8.00 0.085 0.000 122.069 $976.55
17-Nov-86 0.044694 D 8.03 0.132 0.679 122.748 $985.67
30-Nov-86 0.000000 8.06 0.167 0.000 122.748 $989.35
17-Dec-86 0.043968 D 7.99 0.214 0.675 123.423 $986.15
31-Dec-86 7.98 0.252 0.000 123.423 $984.92
19-Jan-87 0.050952 D 8.13 0.304 0.774 124.197 $1,009.72
31-Jan-87 0.000000 8.21 0.337 0.000 124.197 $1,019.66
17-Feb-87 0.044817 D 8.22 0.384 0.677 124.874 $1,026.46
28-Feb-87 0.000000 8.24 0.414 0.000 124.874 $1,028.96
17-Mar-87 0.041936 D 8.23 0.460 0.636 125.510 $1,032.95
31-Mar-87 8.14 0.499 0.000 125.510 $1,021.65
20-Apr-87 0.051312 D 7.65 0.553 0.842 126.352 $966.59
30-Apr-87 0.000000 7.62 0.581 0.000 126.352 $962.80
18-May-87 0.042932 D 7.60 0.630 0.714 127.066 $965.70
31-May-87 0.000000 7.54 0.666 0.000 127.066 $958.08
17-Jun-87 0.045573 D 7.68 0.712 0.754 127.820 $981.66
30-Jun-87 7.72 0.748 0.000 127.820 $986.77
17-Jul-87 0.048159 D 7.78 0.795 0.791 128.611 $1,000.59
31-Jul-87 0.000000 7.76 0.833 0.000 128.611 $998.02
17-Aug-87 0.043326 D 7.74 0.879 0.720 129.331 $1,001.02
31-Aug-87 0.000000 7.71 0.918 0.000 129.331 $997.14
17-Sep-87 0.046740 D 7.44 0.964 0.812 130.143 $968.26
30-Sep-87 7.36 1.000 0.000 130.143 $957.85
19-Oct-87 0.048191 D 6.84 1.052 0.917 131.060 $896.45
19-Oct-87 0.055000 G 6.84 1.052 1.046 132.106 $903.61
31-Oct-87 0.000000 7.32 1.085 0.000 132.106 $967.02
17-Nov-87 0.044160 D 7.49 1.132 0.779 132.885 $995.31
30-Nov-87 0.000000 7.49 1.167 0.000 132.885 $995.31
17-Dec-87 0.044532 D 7.45 1.214 0.794 133.679 $995.91
31-Dec-87 7.55 1.252 0.000 133.679 $1,009.28
18-Jan-88 0.045774 D 7.64 1.301 0.801 134.480 $1,027.43
31-Jan-88 0.000000 7.79 1.337 0.000 134.480 $1,047.60
17-Feb-88 0.043806 D 7.78 1.384 0.757 135.237 $1,052.14
29-Feb-88 0.000000 7.83 1.416 0.000 135.237 $1,058.91
17-Mar-88 0.043214 D 7.71 1.463 0.758 135.995 $1,048.52
31-Mar-88 7.66 1.501 0.000 135.995 $1,041.72
18-Apr-88 0.047079 D 7.63 1.551 0.839 136.834 $1,044.04
30-Apr-88 0.000000 7.65 1.584 0.000 136.834 $1,046.78
17-May-88 0.042737 D 7.64 1.630 0.765 137.599 $1,051.26
31-May-88 0.000000 7.60 1.668 0.000 137.599 $1,045.75
19-Jun-88 0.049630 D 7.67 1.721 0.890 138.489 $1,062.21
30-Jun-88 7.68 1.751 0.000 138.489 $1,063.60
18-Jul-88 0.044167 D 7.67 1.800 0.797 139.286 $1,068.32
31-Jul-88 0.000000 7.69 1.836 0.000 139.286 $1,071.11
17-Aug-88 0.045682 D 7.67 1.882 0.830 140.116 $1,074.69
31-Aug-88 0.000000 7.68 1.921 0.000 140.116 $1,076.09
19-Sep-88 0.049930 D 7.76 1.973 0.902 141.018 $1,094.30
30-Sep-88 7.79 2.003 0.000 141.018 $1,098.53
17-Oct-88 0.041489 D 7.81 2.049 0.749 141.767 $1,107.20
31-Oct-88 0.000000 7.87 2.088 0.000 141.767 $1,115.71
17-Nov-88 0.045573 D 7.75 2.134 0.834 142.601 $1,105.16
17-Nov-88 0.055000 G 7.75 2.134 1.006 143.607 $1,112.95
30-Nov-88 0.000000 7.77 2.170 0.000 143.607 $1,115.83
19-Dec-88 0.047423 D 7.69 2.222 0.886 144.493 $1,111.15
31-Dec-88 7.77 2.255 0.000 144.493 $1,122.71
17-Jan-89 0.042648 D 7.84 2.301 0.786 145.279 $1,138.99
31-Jan-89 0.000000 7.90 2.340 0.000 145.279 $1,147.70
20-Feb-89 0.050234 D 7.79 2.395 0.937 146.216 $1,139.02
28-Feb-89 0.000000 7.78 2.416 0.000 146.216 $1,137.56
19-Mar-89 0.039927 D 7.75 2.468 0.753 146.969 $1,139.01
31-Mar-89 7.73 2.501 0.000 146.969 $1,136.07
17-Apr-89 0.042131 D 7.78 2.548 0.796 147.765 $1,149.61
30-Apr-89 0.000000 7.85 2.584 0.000 147.765 $1,159.96
17-May-89 0.044387 D 7.91 2.630 0.829 148.594 $1,175.38
31-May-89 0.000000 7.94 2.668 0.000 148.594 $1,179.84
19-Jun-89 0.048499 D 7.98 2.721 0.903 149.497 $1,192.99
30-Jun-89 8.01 2.751 0.000 149.497 $1,197.47
17-Jul-89 0.040421 D 8.03 2.797 0.753 150.250 $1,206.51
31-Jul-89 0.000000 8.05 2.836 0.000 150.250 $1,209.51
17-Aug-89 0.045084 D 7.97 2.882 0.850 151.100 $1,204.27
31-Aug-89 7.94 2.921 0.000 151.100 $1,199.73
18-Sep-89 0.047536 D 7.93 2.970 0.906 152.006 $1,205.41
30-Sep-89 7.88 3.003 0.000 152.006 $1,197.81
17-Oct-89 0.041981 D 7.96 3.049 0.802 152.808 $1,216.35
31-Oct-89 7.90 3.088 0.000 152.808 $1,207.18
17-Nov-89 0.046662 D 7.88 3.134 0.905 153.713 $1,211.26
17-Nov-89 0.063000 G 7.88 3.134 1.222 154.935 $1,220.89
30-Nov-89 7.92 3.170 0.000 154.935 $1,227.09
18-Dec-89 0.040923 D 7.95 3.219 0.798 155.733 $1,238.08
31-Dec-89 7.94 3.255 0.000 155.733 $1,236.52
17-Jan-90 0.041816 D 7.90 3.301 0.824 156.557 $1,236.80
31-Jan-90 7.82 3.340 0.000 156.557 $1,224.28
20-Feb-90 0.050040 D 7.85 3.395 0.998 157.555 $1,236.81
28-Feb-90 7.88 3.416 0.000 157.555 $1,241.53
19-Mar-90 0.039592 D 7.82 3.468 0.798 158.353 $1,238.32
31-Mar-90 7.81 3.501 0.000 158.353 $1,236.74
17-Apr-90 0.042148 D 7.81 3.548 0.855 159.208 $1,243.41
30-Apr-90 7.68 3.584 0.000 159.208 $1,222.72
17-May-90 0.043292 D 7.84 3.630 0.879 160.087 $1,255.08
31-May-90 7.85 3.668 0.000 160.087 $1,256.68
18-Jun-90 0.044897 D 7.86 3.718 0.914 161.001 $1,265.47
30-Jun-90 7.87 3.751 0.000 161.001 $1,267.08
17-Jul-90 0.041056 D 7.92 3.797 0.835 161.836 $1,281.74
31-Jul-90 7.96 3.836 0.000 161.836 $1,288.21
17-Aug-90 0.046548 D 7.82 3.882 0.963 162.799 $1,273.09
31-Aug-90 7.75 3.921 0.000 162.799 $1,261.69
17-Sep-90 0.040658 D 7.77 3.967 0.852 163.651 $1,271.57
30-Sep-90 7.70 4.003 0.000 163.651 $1,260.11
17-Oct-90 0.042099 D 7.73 4.049 0.891 164.542 $1,271.91
31-Oct-90 7.81 4.088 0.000 164.542 $1,285.07
16-Nov-90 0.045065 D 7.91 4.132 0.937 165.479 $1,308.94
16-Nov-90 0.024000 G 7.91 4.132 0.499 165.978 $1,312.89
30-Nov-90 7.93 4.170 0.000 165.978 $1,316.21
17-Dec-90 0.041226 D 7.92 4.216 0.864 166.842 $1,321.39
31-Dec-90 7.92 4.255 0.000 166.842 $1,321.39
17-Jan-91 0.044163 D 7.95 4.301 0.927 167.769 $1,333.76
31-Jan-91 8.00 4.340 0.000 167.769 $1,342.15
15-Feb-91 0.044902 D 8.09 4.381 0.931 168.700 $1,364.78
28-Feb-91 8.01 4.416 0.000 168.700 $1,351.29
15-Mar-91 0.037456 D 7.99 4.458 0.791 169.491 $1,354.23
31-Mar-91 7.96 4.501 0.000 169.491 $1,349.15
17-Apr-91 0.042444 D 8.03 4.548 0.896 170.387 $1,368.21
30-Apr-91 8.04 4.584 0.000 170.387 $1,369.91
17-May-91 0.043974 D 8.03 4.630 0.933 171.320 $1,375.70
31-May-91 8.05 4.668 0.000 171.320 $1,379.13
17-Jun-91 0.038751 D 7.97 4.715 0.833 172.153 $1,372.06
30-Jun-91 8.00 4.751 0.000 172.153 $1,377.22
17-Jul-91 0.042203 D 8.02 4.797 0.906 173.059 $1,387.93
31-Jul-91 8.07 4.836 0.000 173.059 $1,396.59
16-Aug-91 0.043140 D 8.10 4.879 0.922 173.981 $1,409.25
31-Aug-91 8.12 4.921 0.000 173.981 $1,412.73
17-Sep-91 0.040081 D 8.16 4.967 0.855 174.836 $1,426.66
30-Sep-91 8.18 5.003 0.000 174.836 $1,430.16
17-Oct-91 0.039776 D 8.21 5.049 0.847 175.683 $1,442.36
31-Oct-91 8.21 5.088 0.000 175.683 $1,442.36
15-Nov-91 0.036000 G 8.19 5.129 0.772 176.455 $1,445.17
15-Nov-91 0.041007 D 8.19 5.129 0.880 177.335 $1,452.37
30-Nov-91 8.16 5.170 0.000 177.335 $1,447.05
17-Dec-91 0.039127 D 8.17 5.216 0.849 178.184 $1,455.76
31-Dec-91 8.26 5.255 0.000 178.184 $1,471.80
17-Jan-92 0.042545 D 8.25 5.301 0.919 179.103 $1,477.60
31-Jan-92 8.20 5.340 0.000 179.103 $1,468.64
14-Feb-92 0.038782 D 8.16 5.378 0.851 179.954 $1,468.42
29-Feb-92 8.17 5.419 0.000 179.954 $1,470.22
17-Mar-92 0.039214 D 8.11 5.466 0.870 180.824 $1,466.48
31-Mar-92 8.13 5.504 0.000 180.824 $1,470.10
16-Apr-92 0.044012 D 8.18 5.548 0.973 181.797 $1,487.10
30-Apr-92 8.14 5.586 0.000 181.797 $1,479.83
15-May-92 0.036904 D 8.20 5.627 0.818 182.615 $1,497.44
31-May-92 8.20 5.671 0.000 182.615 $1,497.44
17-Jun-92 0.041037 D 8.27 5.718 0.906 183.521 $1,517.72
30-Jun-92 8.34 5.753 0.000 183.521 $1,530.57
17-Jul-92 0.043135 D 8.47 5.800 0.935 184.456 $1,562.34
31-Jul-92 8.55 5.838 0.000 184.456 $1,577.10
17-Aug-92 0.038788 D 8.47 5.885 0.845 185.301 $1,569.50
31-Aug-92 8.40 5.923 0.000 185.301 $1,556.53
17-Sep-92 0.042854 D 8.41 5.970 0.944 186.245 $1,566.32
30-Sep-92 8.38 6.005 0.000 186.245 $1,560.73
16-Oct-92 0.040860 D 8.33 6.049 0.914 187.159 $1,559.03
30-Oct-92 8.21 6.088 0.000 187.159 $1,536.58
17-Nov-92 0.039541 D 8.25 6.137 0.897 188.056 $1,551.46
17-Nov-92 0.100000 G 8.25 6.137 2.269 190.325 $1,570.18
30-Nov-92 8.21 6.173 0.000 190.325 $1,562.57
17-Dec-92 0.038846 D 8.28 6.219 0.893 191.218 $1,583.29
31-Dec-92 0.000000 8.30 6.258 0.000 191.218 $1,587.11
15-Jan-93 0.040083 D 8.32 6.299 0.921 192.139 $1,598.60
29-Jan-93 8.36 6.337 0.000 192.139 $1,606.28
17-Feb-93 0.039240 D 8.45 6.389 0.892 193.031 $1,631.11
26-Feb-93 8.63 6.414 0.000 193.031 $1,665.86
17-Mar-93 0.035006 D 8.52 6.466 0.793 193.824 $1,651.38
31-Mar-93 0.000000 8.50 6.504 0.000 193.824 $1,647.50
16-Apr-93 0.040102 D 8.56 6.548 0.908 194.732 $1,666.91
30-Apr-93 8.53 6.586 0.000 194.732 $1,661.06
17-May-93 0.036261 D 8.55 6.633 0.826 195.558 $1,672.02
31-May-93 8.55 6.671 0.000 195.558 $1,672.02
17-Jun-93 0.039040 D 8.59 6.718 0.889 196.447 $1,687.48
30-Jun-93 0.000000 8.64 6.753 0.000 196.447 $1,697.30
16-Jul-93 0.038175 D 8.68 6.797 0.864 197.311 $1,712.66
30-Jul-93 0.000000 8.63 6.836 0.000 197.311 $1,702.79
17-Aug-93 0.036509 D 8.70 6.885 0.828 198.139 $1,723.81
31-Aug-93 0.000000 8.75 6.923 0.000 198.139 $1,733.72
17-Sep-93 0.039817 D 8.79 6.970 0.898 199.037 $1,749.54
30-Sep-93 0.000000 8.79 7.005 0.000 199.037 $1,749.54
15-Oct-93 0.033779 D 8.88 7.047 0.757 199.794 $1,774.17
29-Oct-93 0.000000 8.79 7.085 0.000 199.794 $1,756.19
17-Nov-93 0.037861 D 8.59 7.137 0.881 200.675 $1,723.80
17-Nov-93 0.084000 G 8.59 7.137 1.954 202.629 $1,740.58
30-Nov-93 0.000000 8.57 7.173 0.000 202.629 $1,736.53
17-Dec-93 0.039087 D 8.65 7.219 0.916 203.545 $1,760.66
31-Dec-93 0.000000 8.69 7.258 0.000 203.545 $1,768.81
17-Jan-94 0.035614 D 8.68 7.304 0.835 204.380 $1,774.02
31-Jan-94 0.000000 8.75 7.342 0.000 204.380 $1,788.33
17-Feb-94 0.037468 D 8.61 7.389 0.889 205.269 $1,767.37
28-Feb-94 0.000000 8.50 7.419 0.000 205.269 $1,744.79
17-Mar-94 0.034074 D 8.37 7.466 0.836 206.105 $1,725.10
31-Mar-94 0.000000 8.12 7.504 0.000 206.105 $1,673.57
15-Apr-94 0.038143 D 8.11 7.545 0.969 207.074 $1,679.37
29-Apr-94 0.000000 8.09 7.584 0.000 207.074 $1,675.23
17-May-94 0.036780 D 8.10 7.633 0.940 208.014 $1,684.91
31-May-94 8.13 7.671 0.000 208.014 $1,691.15
17-Jun-94 0.040469 D 8.17 7.718 1.030 209.044 $1,707.89
30-Jun-94 0.000000 8.04 7.753 0.000 209.044 $1,680.71
15-Jul-94 0.034309 D 8.10 7.795 0.885 209.929 $1,700.42
29-Jul-94 0.000000 8.16 7.833 0.000 209.929 $1,713.02
17-Aug-94 0.037150 D 8.13 7.885 0.959 210.888 $1,714.52
31-Aug-94 0.000000 8.13 7.923 0.000 210.888 $1,714.52
16-Sep-94 0.038271 D 8.01 7.967 1.008 211.896 $1,697.29
30-Sep-94 0.000000 7.94 8.005 0.000 211.896 $1,682.45
14-Oct-94 0.034258 D 7.91 8.044 0.918 212.814 $1,683.36
31-Oct-94 0.000000 7.76 8.090 0.000 212.814 $1,651.44
17-Nov-94 0.037289 D 7.30 8.137 1.087 213.901 $1,561.48
17-Nov-94 0.140000 CG 7.30 8.137 4.081 217.982 $1,591.27
30-Nov-94 0.000000 7.43 8.173 0.000 217.982 $1,619.61
16-Dec-94 0.036695 D 7.56 8.216 1.058 219.040 $1,655.94
31-Dec-94 0.000000 7.60 8.258 0.000 219.040 $1,664.70
17-Jan-95 0.035331 D 7.71 8.304 1.004 220.044 $1,696.54
31-Jan-95 0.000000 7.78 8.342 0.000 220.044 $1,711.94
17-Feb-95 0.039955 D 7.90 8.389 1.113 221.157 $1,747.14
28-Feb-95 0.000000 7.96 8.419 0.000 221.157 $1,760.41
17-Mar-95 0.031971 D 7.99 8.466 0.885 222.042 $1,774.12
31-Mar-95 0.000000 7.99 8.504 0.000 222.042 $1,774.12
17-Apr-95 0.034356 D 8.06 8.551 0.946 222.988 $1,797.28
28-Apr-95 0.000000 7.95 8.581 0.000 222.988 $1,772.75
17-May-95 0.035441 D 8.14 8.633 0.971 223.959 $1,823.03
31-May-95 0.000000 8.18 8.671 0.000 223.959 $1,831.98
16-Jun-95 0.037506 D 8.09 8.715 1.038 224.997 $1,820.23
30-Jun-95 0.000000 8.04 8.753 0.000 224.997 $1,808.98
17-Jul-95 0.033979 D 8.12 8.800 0.942 225.939 $1,834.62
31-Jul-95 0.000000 8.05 8.838 0.000 225.939 $1,818.81
17-Aug-95 0.036550 D 7.96 8.885 1.037 226.976 $1,806.73
31-Aug-95 0.000000 8.12 8.923 0.000 226.976 $1,843.05
15-Sep-95 0.035851 D 8.21 8.964 0.991 227.967 $1,871.61
30-Sep-95 0.000000 8.14 9.005 0.000 227.967 $1,855.65
17-Oct-95 0.034392 D 8.24 9.052 0.951 228.918 $1,886.28
31-Oct-95 0.000000 8.22 9.090 0.000 228.918 $1,881.71
17-Nov-95 0.062000 G 8.22 9.137 1.727 230.645 $1,895.90
17-Nov-95 0.038238 D 8.22 9.137 1.065 231.710 $1,904.66
30-Nov-95 0.000000 8.29 9.173 0.000 231.710 $1,920.88
15-Dec-95 0.032431 D 8.29 9.214 0.906 232.616 $1,928.39
29-Dec-95 0.000000 8.38 9.252 0.000 232.616 $1,949.32
31-Dec-95 0.000000 8.38 9.258 0.000 232.616 $1,949.32
17-Jan-96 0.036296 D 8.35 9.304 1.011 233.627 $1,950.79
31-Jan-96 0.000000 8.38 9.342 0.000 233.627 $1,957.79
16-Feb-96 0.038093 D 8.43 9.386 1.056 234.683 $1,978.38
29-Feb-96 0.000000 8.33 9.422 0.000 234.683 $1,954.91
15-Mar-96 0.031144 D 8.08 9.463 0.905 235.588 $1,903.55
29-Mar-96 0.000000 8.14 9.501 0.000 235.588 $1,917.69
31-Mar-96 0.000000 8.14 9.507 0.000 235.588 $1,917.69
17-Apr-96 0.035847 D 8.09 9.553 1.044 236.632 $1,914.35
30-Apr-96 0.000000 8.06 9.589 0.000 236.632 $1,907.25
17-May-96 0.037043 D 8.10 9.636 1.082 237.714 $1,925.48
31-May-96 0.000000 D 8.04 9.674 0.000 237.714 $1,911.22
17-Jun-96 0.032870 D 7.97 9.721 0.980 238.694 $1,902.39
30-Jun-96 0.000000 8.06 9.756 0.000 238.694 $1,923.87
17-Jul-96 0.033826 D 8.05 9.803 1.003 239.697 $1,929.56
31-Jul-96 8.10 9.841 0.000 239.697 $1,941.55
16-Aug-96 0.036206 D 8.19 9.885 1.060 240.757 $1,971.80
31-Aug-96 8.08 9.926 0.000 240.757 $1,945.32
17-Sep-96 0.034695 D 8.13 9.973 1.027 241.784 $1,965.70
30-Sep-96 0.000000 8.16 10.008 0.000 241.784 $1,972.96
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 7.03%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VA $1,972.96
TOTAL RETURN FOR PERIOD 97.30%
<PAGE>
SELIGMAN MASSACHUSETTS MUNICIPAL SERIES CL A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $8.47
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ----------- --------- --- ----- ------- -------- --------- -----------
30-Sep-86 8.07 118.064 118.064 $952.78
17-Oct-86 0.048830 D 7.92 0.047 0.728 118.792 $940.83
17-Oct-86 0.180000 G 7.92 0.047 2.683 121.475 $962.08
30-Oct-86 0.000000 8.01 0.082 0.000 121.475 $973.01
17-Nov-86 0.043275 D 8.03 0.132 0.655 122.130 $980.70
30-Nov-86 0.000000 8.07 0.167 0.000 122.130 $985.59
17-Dec-86 0.044765 D 8.03 0.214 0.681 122.811 $986.17
31-Dec-86 8.03 0.252 0.000 122.811 $986.17
19-Jan-87 0.050055 D 8.13 0.304 0.756 123.567 $1,004.60
30-Jan-87 0.000000 8.20 0.334 0.000 123.567 $1,013.25
17-Feb-87 0.044098 D 8.20 0.384 0.665 124.232 $1,018.70
28-Feb-87 0.000000 8.21 0.414 0.000 124.232 $1,019.94
17-Mar-87 0.041420 D 8.23 0.460 0.625 124.857 $1,027.57
31-Mar-87 8.14 0.499 0.000 124.857 $1,016.34
20-Apr-87 0.051214 D 7.60 0.553 0.841 125.698 $955.30
30-Apr-87 0.000000 7.56 0.581 0.000 125.698 $950.28
18-May-87 0.042319 D 7.55 0.630 0.705 126.403 $954.34
30-May-87 0.000000 7.47 0.663 0.000 126.403 $944.23
17-Jun-87 0.045046 D 7.62 0.712 0.747 127.150 $968.88
30-Jun-87 7.61 0.748 0.000 127.150 $967.61
17-Jul-87 0.047634 D 7.67 0.795 0.790 127.940 $981.30
30-Jul-87 0.000000 7.68 0.830 0.000 127.940 $982.58
17-Aug-87 0.043312 D 7.67 0.879 0.722 128.662 $986.84
30-Aug-87 0.000000 7.67 0.915 0.000 128.662 $986.84
17-Sep-87 0.046517 D 7.33 0.964 0.817 129.479 $949.08
30-Sep-87 7.20 1.000 0.000 129.479 $932.25
19-Oct-87 0.089000 G 6.59 1.052 1.749 131.228 $864.79
19-Oct-87 0.048114 D 6.59 1.052 0.945 132.173 $871.02
30-Oct-87 0.000000 7.09 1.082 0.000 132.173 $937.11
17-Nov-87 0.043110 D 7.29 1.132 0.782 132.955 $969.24
30-Nov-87 0.000000 7.31 1.167 0.000 132.955 $971.90
17-Dec-87 0.042741 D 7.26 1.214 0.783 133.738 $970.94
31-Dec-87 7.37 1.252 0.000 133.738 $985.65
18-Jan-88 0.044610 D 7.47 1.301 0.799 134.537 $1,004.99
30-Jan-88 0.000000 7.65 1.334 0.000 134.537 $1,029.21
17-Feb-88 0.042652 D 7.68 1.384 0.747 135.284 $1,038.98
29-Feb-88 0.000000 7.71 1.416 0.000 135.284 $1,043.04
17-Mar-88 0.041403 D 7.57 1.463 0.740 136.024 $1,029.70
31-Mar-88 7.53 1.501 0.000 136.024 $1,024.26
18-Apr-88 0.045463 D 7.51 1.551 0.823 136.847 $1,027.72
30-Apr-88 0.000000 7.58 1.584 0.000 136.847 $1,037.30
17-May-88 0.041228 D 7.53 1.630 0.749 137.596 $1,036.10
30-May-88 0.000000 7.47 1.666 0.000 137.596 $1,027.84
19-Jun-88 0.047013 D 7.53 1.721 0.859 138.455 $1,042.57
30-Jun-88 7.57 1.751 0.000 138.455 $1,048.10
18-Jul-88 0.041125 D 7.56 1.800 0.753 139.208 $1,052.41
30-Jul-88 0.000000 7.57 1.833 0.000 139.208 $1,053.80
17-Aug-88 0.043339 D 7.53 1.882 0.801 140.009 $1,054.27
30-Aug-88 0.000000 7.54 1.918 0.000 140.009 $1,055.67
19-Sep-88 0.047342 D 7.63 1.973 0.869 140.878 $1,074.90
30-Sep-88 7.62 2.003 0.000 140.878 $1,073.49
17-Oct-88 0.039987 D 7.69 2.049 0.733 141.611 $1,088.99
30-Oct-88 0.000000 7.77 2.085 0.000 141.611 $1,100.32
17-Nov-88 0.043944 D 7.62 2.134 0.817 142.428 $1,085.30
17-Nov-88 0.053000 G 7.62 2.134 0.985 143.413 $1,092.81
30-Nov-88 0.000000 7.55 2.170 0.000 143.413 $1,082.77
19-Dec-88 0.045464 D 7.52 2.222 0.867 144.280 $1,084.99
31-Dec-88 7.59 2.255 0.000 144.280 $1,095.09
17-Jan-89 0.041609 D 7.65 2.301 0.785 145.065 $1,109.75
30-Jan-89 0.000000 7.71 2.337 0.000 145.065 $1,118.45
20-Feb-89 0.048728 D 7.59 2.395 0.931 145.996 $1,108.11
28-Feb-89 0.000000 7.56 2.416 0.000 145.996 $1,103.73
19-Mar-89 0.038603 D 7.49 2.468 0.752 146.748 $1,099.14
31-Mar-89 7.50 2.501 0.000 146.748 $1,100.61
17-Apr-89 0.041472 D 7.56 2.548 0.805 147.553 $1,115.50
30-Apr-89 0.000000 7.65 2.584 0.000 147.553 $1,128.78
17-May-89 0.042900 D 7.73 2.630 0.819 148.372 $1,146.92
30-May-89 0.000000 7.76 2.666 0.000 148.372 $1,151.37
19-Jun-89 0.047075 D 7.80 2.721 0.895 149.267 $1,164.28
30-Jun-89 7.81 2.751 0.000 149.267 $1,165.78
17-Jul-89 0.039539 D 7.80 2.797 0.757 150.024 $1,170.19
30-Jul-89 0.000000 7.82 2.833 0.000 150.024 $1,173.19
17-Aug-89 0.044364 D 7.72 2.882 0.862 150.886 $1,164.84
31-Aug-89 7.69 2.921 0.000 150.886 $1,160.31
18-Sep-89 0.047063 D 7.70 2.970 0.922 151.808 $1,168.92
30-Sep-89 7.65 3.003 0.000 151.808 $1,161.33
17-Oct-89 0.041388 D 7.72 3.049 0.814 152.622 $1,178.24
31-Oct-89 7.65 3.088 0.000 152.622 $1,167.56
17-Nov-89 0.081000 G 7.59 3.134 1.629 154.251 $1,170.77
17-Nov-89 0.045615 D 7.59 3.134 0.917 155.168 $1,177.73
30-Nov-89 7.62 3.170 0.000 155.168 $1,182.38
18-Dec-89 0.039287 D 7.65 3.219 0.797 155.965 $1,193.13
31-Dec-89 7.63 3.255 0.000 155.965 $1,190.01
17-Jan-90 0.040039 D 7.59 3.301 0.823 156.788 $1,190.02
31-Jan-90 7.52 3.340 0.000 156.788 $1,179.05
20-Feb-90 0.048790 D 7.53 3.395 1.016 157.804 $1,188.26
28-Feb-90 7.56 3.416 0.000 157.804 $1,193.00
19-Mar-90 0.039175 D 7.52 3.468 0.822 158.626 $1,192.87
31-Mar-90 7.50 3.501 0.000 158.626 $1,189.70
17-Apr-90 0.040787 D 7.48 3.548 0.865 159.491 $1,192.99
30-Apr-90 7.34 3.584 0.000 159.491 $1,170.66
17-May-90 0.041465 D 7.50 3.630 0.882 160.373 $1,202.80
31-May-90 7.51 3.668 0.000 160.373 $1,204.40
18-Jun-90 0.042456 D 7.54 3.718 0.903 161.276 $1,216.02
30-Jun-90 7.53 3.751 0.000 161.276 $1,214.41
13-Jul-90 0.038843 D 7.59 3.786 0.825 162.101 $1,230.35
31-Jul-90 7.62 3.836 0.000 162.101 $1,235.21
17-Aug-90 0.044159 D 7.48 3.882 0.957 163.058 $1,219.67
31-Aug-90 7.37 3.921 0.000 163.058 $1,201.74
17-Sep-90 0.039473 D 7.37 3.967 0.873 163.931 $1,208.17
30-Sep-90 7.26 4.003 0.000 163.931 $1,190.14
17-Oct-90 0.041650 D 7.29 4.049 0.937 164.868 $1,201.89
31-Oct-90 7.30 4.088 0.000 164.868 $1,203.54
16-Nov-90 0.044461 D 7.47 4.132 0.981 165.849 $1,238.89
16-Nov-90 0.015000 G 7.47 4.132 0.331 166.180 $1,241.36
30-Nov-90 7.50 4.170 0.000 166.180 $1,246.35
17-Dec-90 0.038953 D 7.52 4.216 0.861 167.041 $1,256.15
31-Dec-90 7.51 4.255 0.000 167.041 $1,254.48
17-Jan-91 0.042693 D 7.55 4.301 0.945 167.986 $1,268.29
31-Jan-91 7.60 4.340 0.000 167.986 $1,276.69
15-Feb-91 0.043989 D 7.70 4.381 0.960 168.946 $1,300.88
28-Feb-91 7.63 4.416 0.000 168.946 $1,289.06
15-Mar-91 0.037084 D 7.62 4.458 0.822 169.768 $1,293.63
31-Mar-91 7.61 4.501 0.000 169.768 $1,291.93
17-Apr-91 0.043036 D 7.68 4.548 0.951 170.719 $1,311.12
30-Apr-91 7.66 4.584 0.000 170.719 $1,307.71
17-May-91 0.044083 D 7.67 4.630 0.981 171.700 $1,316.94
31-May-91 7.68 4.668 0.000 171.700 $1,318.66
17-Jun-91 0.039534 D 7.63 4.715 0.890 172.590 $1,316.86
30-Jun-91 7.66 4.751 0.000 172.590 $1,322.04
17-Jul-91 0.041156 D 7.72 4.797 0.920 173.510 $1,339.50
31-Jul-91 7.75 4.836 0.000 173.510 $1,344.70
16-Aug-91 0.043619 D 7.79 4.879 0.972 174.482 $1,359.21
31-Aug-91 7.79 4.921 0.000 174.482 $1,359.21
17-Sep-91 0.041155 D 7.83 4.967 0.917 175.399 $1,373.37
30-Sep-91 7.86 5.003 0.000 175.399 $1,378.64
17-Oct-91 0.040879 D 7.87 5.049 0.911 176.310 $1,387.56
31-Oct-91 7.86 5.088 0.000 176.310 $1,385.80
15-Nov-91 0.042020 D 7.83 5.129 0.946 177.256 $1,387.91
15-Nov-91 0.044000 G 7.83 5.129 0.991 178.247 $1,395.67
30-Nov-91 7.80 5.170 0.000 178.247 $1,390.33
17-Dec-91 0.040304 D 7.81 5.216 0.920 179.167 $1,399.29
31-Dec-91 7.91 5.255 0.000 179.167 $1,417.21
17-Jan-92 0.044860 D 7.90 5.301 1.017 180.184 $1,423.45
31-Jan-92 7.87 5.340 0.000 180.184 $1,418.05
14-Feb-92 0.039461 D 7.83 5.378 0.908 181.092 $1,417.95
29-Feb-92 7.86 5.419 0.000 181.092 $1,423.38
17-Mar-92 0.039690 D 7.80 5.466 0.921 182.013 $1,419.70
31-Mar-92 7.83 5.504 0.000 182.013 $1,425.16
16-Apr-92 0.044809 D 7.88 5.548 1.035 183.048 $1,442.42
30-Apr-92 7.85 5.586 0.000 183.048 $1,436.93
15-May-92 0.037718 D 7.91 5.627 0.873 183.921 $1,454.82
31-May-92 7.92 5.671 0.000 183.921 $1,456.65
17-Jun-92 0.041382 D 7.95 5.718 0.957 184.878 $1,469.78
30-Jun-92 8.00 5.753 0.000 184.878 $1,479.02
17-Jul-92 0.043405 D 8.11 5.800 0.989 185.867 $1,507.38
31-Jul-92 8.20 5.838 0.000 185.867 $1,524.11
16-Aug-92 0.039073 D 8.11 5.882 0.895 186.762 $1,514.64
31-Aug-92 8.05 5.923 0.000 186.762 $1,503.43
17-Sep-92 0.041672 D 8.07 5.970 0.964 187.726 $1,514.95
30-Sep-92 8.06 6.005 0.000 187.726 $1,513.07
16-Oct-92 0.040998 D 8.02 6.049 0.960 188.686 $1,513.26
30-Oct-92 7.91 6.088 0.000 188.686 $1,492.51
17-Nov-92 0.039179 D 7.97 6.137 0.928 189.614 $1,511.22
17-Nov-92 0.073000 G 7.97 6.137 1.728 191.342 $1,525.00
30-Nov-92 7.99 6.173 0.000 191.342 $1,528.82
17-Dec-92 0.038814 D 8.01 6.219 0.927 192.269 $1,540.07
31-Dec-92 0.000000 8.04 6.258 0.000 192.269 $1,545.84
15-Jan-93 0.040769 D 8.05 6.299 0.974 193.243 $1,555.61
29-Jan-93 8.08 6.337 0.000 193.243 $1,561.40
17-Feb-93 0.041119 D 8.18 6.389 0.971 194.214 $1,588.67
26-Feb-93 8.34 6.414 0.000 194.214 $1,619.74
17-Mar-93 0.036108 D 8.23 6.466 0.852 195.066 $1,605.39
31-Mar-93 0.000000 8.21 6.504 0.000 195.066 $1,601.49
16-Apr-93 0.040201 D 8.32 6.548 0.943 196.009 $1,630.79
30-Apr-93 8.28 6.586 0.000 196.009 $1,622.95
17-May-93 0.036277 D 8.30 6.633 0.857 196.866 $1,633.99
31-May-93 8.29 6.671 0.000 196.866 $1,632.02
17-Jun-93 0.038597 D 8.34 6.718 0.911 197.777 $1,649.46
30-Jun-93 0.000000 8.39 6.753 0.000 197.777 $1,659.35
16-Jul-93 0.038484 D 8.41 6.797 0.905 198.682 $1,670.92
30-Jul-93 0.000000 8.35 6.836 0.000 198.682 $1,658.99
17-Aug-93 0.037374 D 8.45 6.885 0.879 199.561 $1,686.29
31-Aug-93 0.000000 8.49 6.923 0.000 199.561 $1,694.27
17-Sep-93 0.041160 D 8.54 6.970 0.962 200.523 $1,712.47
30-Sep-93 0.000000 8.54 7.005 0.000 200.523 $1,712.47
15-Oct-93 0.034694 D 8.61 7.047 0.808 201.331 $1,733.46
29-Oct-93 8.50 7.085 0.000 201.331 $1,711.31
17-Nov-93 0.205000 G 8.22 7.137 5.021 206.352 $1,696.21
17-Nov-93 0.037573 D 8.22 7.137 0.920 207.272 $1,703.78
30-Nov-93 0.000000 8.19 7.173 0.000 207.272 $1,697.56
17-Dec-93 0.037456 D 8.26 7.219 0.940 208.212 $1,719.83
31-Dec-93 0.000000 8.28 7.258 0.000 208.212 $1,724.00
17-Jan-94 0.034706 D 8.29 7.304 0.872 209.084 $1,733.31
31-Jan-94 0.000000 8.35 7.342 0.000 209.084 $1,745.85
17-Feb-94 0.037514 D 8.23 7.389 0.953 210.037 $1,728.60
28-Feb-94 0.000000 8.13 7.419 0.000 210.037 $1,707.60
17-Mar-94 0.034003 D 8.02 7.466 0.891 210.928 $1,691.64
31-Mar-94 0.000000 7.79 7.504 0.000 210.928 $1,643.13
15-Apr-94 0.037667 D 7.78 7.545 1.021 211.949 $1,648.96
29-Apr-94 0.000000 7.78 7.584 0.000 211.949 $1,648.96
17-May-94 0.036652 D 7.78 7.633 0.999 212.948 $1,656.74
31-May-94 7.82 7.671 0.000 212.948 $1,665.25
17-Jun-94 0.040025 D 7.86 7.718 1.084 214.032 $1,682.29
30-Jun-94 0.000000 7.74 7.753 0.000 214.032 $1,656.61
15-Jul-94 0.033314 D 7.78 7.795 0.916 214.948 $1,672.30
29-Jul-94 0.000000 7.83 7.833 0.000 214.948 $1,683.04
17-Aug-94 0.036389 D 7.81 7.885 1.002 215.950 $1,686.57
31-Aug-94 0.000000 7.81 7.923 0.000 215.950 $1,686.57
16-Sep-94 0.036960 D 7.70 7.967 1.037 216.987 $1,670.80
30-Sep-94 0.000000 7.66 8.005 0.000 216.987 $1,662.12
17-Oct-94 0.034685 D 7.64 8.052 0.985 217.972 $1,665.31
31-Oct-94 0.000000 7.50 8.090 0.000 217.972 $1,634.79
17-Nov-94 0.032000 CG 7.22 8.137 0.966 218.938 $1,580.73
17-Nov-94 0.037479 D 7.22 8.137 1.131 220.069 $1,588.90
30-Nov-94 0.000000 7.31 8.173 0.000 220.069 $1,608.70
16-Dec-94 0.036589 D 7.42 8.216 1.085 221.154 $1,640.96
31-Dec-94 0.000000 7.45 8.258 0.000 221.154 $1,647.60
17-Jan-95 0.035369 D 7.54 8.304 1.037 222.191 $1,675.32
31-Jan-95 0.000000 7.61 8.342 0.000 222.191 $1,690.87
17-Feb-95 0.039887 D 7.72 8.389 1.148 223.339 $1,724.18
28-Feb-95 0.000000 7.79 8.419 0.000 223.339 $1,739.81
17-Mar-95 0.031861 D 7.81 8.466 0.911 224.250 $1,751.39
31-Mar-95 0.000000 7.80 8.504 0.000 224.250 $1,749.15
17-Apr-95 0.033952 D 7.84 8.551 0.971 225.221 $1,765.73
28-Apr-95 0.000000 7.75 8.581 0.000 225.221 $1,745.46
17-May-95 0.035006 D 7.92 8.633 0.995 226.216 $1,791.63
31-May-95 0.000000 7.95 8.671 0.000 226.216 $1,798.42
16-Jun-95 0.036882 D 7.87 8.715 1.060 227.276 $1,788.66
30-Jun-95 0.000000 7.84 8.753 0.000 227.276 $1,781.84
17-Jul-95 0.032644 D 7.92 8.800 0.937 228.213 $1,807.45
31-Jul-95 0.000000 7.85 8.838 0.000 228.213 $1,791.47
17-Aug-95 0.035855 D 7.77 8.885 1.053 229.266 $1,781.40
31-Aug-95 0.000000 7.90 8.923 0.000 229.266 $1,811.20
15-Sep-95 0.034611 D 7.97 8.964 0.996 230.262 $1,835.19
30-Sep-95 0.000000 7.91 9.005 0.000 230.262 $1,821.37
17-Oct-95 0.033750 D 8.01 9.052 0.970 231.232 $1,852.17
31-Oct-95 0.000000 7.98 9.090 0.000 231.232 $1,845.23
17-Nov-95 0.107000 G 7.92 9.137 3.124 234.356 $1,856.10
17-Nov-95 0.037182 D 7.92 9.137 1.086 235.442 $1,864.70
30-Nov-95 0.000000 7.98 9.173 0.000 235.442 $1,878.83
15-Dec-95 0.031155 D 7.96 9.214 0.922 236.364 $1,881.46
29-Dec-95 0.000000 8.03 9.252 0.000 236.364 $1,898.00
31-Dec-95 0.000000 8.03 9.258 0.000 236.364 $1,898.00
17-Jan-96 0.034743 D 8.01 9.304 1.025 237.389 $1,901.49
31-Jan-96 0.000000 8.04 9.342 0.000 237.389 $1,908.61
16-Feb-96 0.036952 D 8.04 9.386 1.091 238.480 $1,917.38
29-Feb-96 0.000000 7.94 9.422 0.000 238.480 $1,893.53
15-Mar-96 0.030618 D 7.71 9.463 0.947 239.427 $1,845.98
29-Mar-96 0.000000 7.79 9.501 0.000 239.427 $1,865.14
31-Mar-96 0.000000 7.79 9.507 0.000 239.427 $1,865.14
17-Apr-96 0.034368 D 7.73 9.553 1.065 240.492 $1,859.00
30-Apr-96 0.000000 7.72 9.589 0.000 240.492 $1,856.60
17-May-96 0.035814 D 7.77 9.636 1.108 241.600 $1,877.23
31-May-96 0.000000 D 7.71 9.674 0.000 241.600 $1,862.74
17-Jun-96 0.032267 D 7.67 9.721 1.016 242.616 $1,860.86
30-Jun-96 0.000000 7.77 9.756 0.000 242.616 $1,885.13
17-Jul-96 0.033746 D 7.76 9.803 1.055 243.671 $1,890.89
31-Jul-96 7.81 9.841 0.000 243.671 $1,903.07
17-Aug-96 0.036294 D 7.88 9.888 1.122 244.793 $1,928.97
31-Aug-96 7.75 9.926 0.000 244.793 $1,897.15
17-Sep-96 0.034141 D 7.81 9.973 1.070 245.863 $1,920.19
30-Sep-96 0.000000 7.85 10.008 0.000 245.863 $1,930.02
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.80%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,930.02
TOTAL RETURN FOR PERIOD 93.00%
<PAGE>
SELIGMAN MARYLAND MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $7.97
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ------------ --------- --- ----- ------- -------- --------- -----------
30-Sep-86 7.59 125.471 125.471 $952.32
17-Oct-86 0.043116 D 7.66 0.047 0.706 126.177 $966.52
17-Oct-86 0.002000 G 7.66 0.047 0.033 126.210 $966.77
31-Oct-86 0.000000 7.73 0.085 0.000 126.210 $975.60
17-Nov-86 0.037668 D 7.76 0.132 0.613 126.823 $984.15
30-Nov-86 0.000000 7.79 0.167 0.000 126.823 $987.95
17-Dec-86 0.042279 D 7.80 0.214 0.687 127.510 $994.58
31-Dec-86 7.76 0.252 0.000 127.510 $989.48
19-Jan-87 0.044633 D 7.85 0.304 0.725 128.235 $1,006.64
30-Jan-87 0.000000 7.89 0.334 0.000 128.235 $1,011.77
17-Feb-87 0.037155 D 7.87 0.384 0.605 128.840 $1,013.97
28-Feb-87 0.000000 7.86 0.414 0.000 128.840 $1,012.68
17-Mar-87 0.037312 D 7.87 0.460 0.611 129.451 $1,018.78
31-Mar-87 7.78 0.499 0.000 129.451 $1,007.13
20-Apr-87 0.044515 D 7.20 0.553 0.800 130.251 $937.81
28-Apr-87 0.000000 7.19 0.575 0.000 130.251 $936.50
18-May-87 0.037158 D 7.18 0.630 0.674 130.925 $940.04
30-May-87 0.000000 7.15 0.663 0.000 130.925 $936.11
17-Jun-87 0.039473 D 7.23 0.712 0.715 131.640 $951.76
30-Jun-87 7.25 0.748 0.000 131.640 $954.39
17-Jul-87 0.042305 D 7.30 0.795 0.763 132.403 $966.54
30-Jul-87 0.000000 7.30 0.830 0.000 132.403 $966.54
17-Aug-87 0.038492 D 7.28 0.879 0.700 133.103 $968.99
31-Aug-87 0.000000 7.29 0.918 0.000 133.103 $970.32
17-Sep-87 0.041532 D 6.94 0.964 0.797 133.900 $929.27
30-Sep-87 6.87 1.000 0.000 133.900 $919.89
19-Oct-87 0.040000 G 6.31 1.052 0.849 134.749 $850.27
19-Oct-87 0.042750 D 6.31 1.052 0.907 135.656 $855.99
31-Oct-87 0.000000 6.79 1.085 0.000 135.656 $921.10
17-Nov-87 0.038569 D 7.09 1.132 0.738 136.394 $967.03
30-Nov-87 0.000000 7.08 1.167 0.000 136.394 $965.67
17-Dec-87 0.038595 D 7.07 1.214 0.745 137.139 $969.57
31-Dec-87 7.15 1.252 0.000 137.139 $980.54
18-Jan-88 0.039383 D 7.24 1.301 0.746 137.885 $998.29
30-Jan-88 0.000000 7.43 1.334 0.000 137.885 $1,024.49
17-Feb-88 0.038525 D 7.46 1.384 0.712 138.597 $1,033.93
29-Feb-88 0.000000 7.50 1.416 0.000 138.597 $1,039.48
17-Mar-88 0.038040 D 7.34 1.463 0.718 139.315 $1,022.57
31-Mar-88 7.24 1.501 0.000 139.315 $1,008.64
18-Apr-88 0.041399 D 7.24 1.551 0.797 140.112 $1,014.41
29-Apr-88 0.000000 7.27 1.581 0.000 140.112 $1,018.61
17-May-88 0.037596 D 7.25 1.630 0.727 140.839 $1,021.08
29-May-88 0.000000 7.21 1.663 0.000 140.839 $1,015.45
19-Jun-88 0.043716 D 7.29 1.721 0.845 141.684 $1,032.88
30-Jun-88 7.28 1.751 0.000 141.684 $1,031.46
18-Jul-88 0.038401 D 7.29 1.800 0.746 142.430 $1,038.31
29-Jul-88 0.000000 7.31 1.830 0.000 142.430 $1,041.16
17-Aug-88 0.039905 D 7.28 1.882 0.781 143.211 $1,042.58
30-Aug-88 0.000000 7.30 1.918 0.000 143.211 $1,045.44
19-Sep-88 0.043889 D 7.39 1.973 0.851 144.062 $1,064.62
30-Sep-88 7.39 2.003 0.000 144.062 $1,064.62
17-Oct-88 0.036889 D 7.47 2.049 0.711 144.773 $1,081.45
30-Oct-88 0.000000 7.52 2.085 0.000 144.773 $1,088.69
17-Nov-88 0.040352 D 7.44 2.134 0.785 145.558 $1,082.95
30-Nov-88 0.000000 7.40 2.170 0.000 145.558 $1,077.13
19-Dec-88 0.041569 D 7.38 2.222 0.820 146.378 $1,080.27
31-Dec-88 7.45 2.255 0.000 146.378 $1,090.52
17-Jan-89 0.038267 D 7.52 2.301 0.745 147.123 $1,106.36
30-Jan-89 0.000000 7.59 2.337 0.000 147.123 $1,116.66
20-Feb-89 0.044829 D 7.50 2.395 0.879 148.002 $1,110.02
28-Feb-89 0.000000 7.46 2.416 0.000 148.002 $1,104.09
19-Mar-89 0.035626 D 7.42 2.468 0.711 148.713 $1,103.45
31-Mar-89 7.42 2.501 0.000 148.713 $1,103.45
17-Apr-89 0.037362 D 7.48 2.548 0.743 149.456 $1,117.93
30-Apr-89 0.000000 7.56 2.584 0.000 149.456 $1,129.89
17-May-89 0.039919 D 7.61 2.630 0.784 150.240 $1,143.33
30-May-89 0.000000 7.67 2.666 0.000 150.240 $1,152.34
19-Jun-89 0.043917 D 7.68 2.721 0.859 151.099 $1,160.44
30-Jun-89 7.73 2.751 0.000 151.099 $1,168.00
17-Jul-89 0.036600 D 7.76 2.797 0.713 151.812 $1,178.06
30-Jul-89 0.000000 7.79 2.833 0.000 151.812 $1,182.62
17-Aug-89 0.041339 D 7.71 2.882 0.814 152.626 $1,176.75
30-Aug-89 0.000000 7.67 2.918 0.000 152.626 $1,170.64
31-Aug-89 7.67 2.921 0.000 152.626 $1,170.64
18-Sep-89 0.043578 D 7.66 2.970 0.868 153.494 $1,175.76
30-Sep-89 7.59 3.003 0.000 153.494 $1,165.02
17-Oct-89 0.038363 D 7.65 3.049 0.770 154.264 $1,180.12
31-Oct-89 7.60 3.088 0.000 154.264 $1,172.41
17-Nov-89 0.043022 D 7.66 3.134 0.866 155.130 $1,188.30
30-Nov-89 7.69 3.170 0.000 155.130 $1,192.95
18-Dec-89 0.037389 D 7.72 3.219 0.751 155.881 $1,203.40
31-Dec-89 7.73 3.255 0.000 155.881 $1,204.96
17-Jan-90 0.038018 D 7.69 3.301 0.771 156.652 $1,204.65
31-Jan-90 7.63 3.340 0.000 156.652 $1,195.25
20-Feb-90 0.046819 D 7.64 3.395 0.960 157.612 $1,204.16
28-Feb-90 7.66 3.416 0.000 157.612 $1,207.31
19-Mar-90 0.036311 D 7.61 3.468 0.752 158.364 $1,205.15
31-Mar-90 7.59 3.501 0.000 158.364 $1,201.98
17-Apr-90 0.038095 D 7.58 3.548 0.796 159.160 $1,206.43
30-Apr-90 7.47 3.584 0.000 159.160 $1,188.93
17-May-90 0.038900 D 7.60 3.630 0.815 159.975 $1,215.81
31-May-90 7.60 3.668 0.000 159.975 $1,215.81
18-Jun-90 0.041117 D 7.62 3.718 0.863 160.838 $1,225.59
30-Jun-90 7.63 3.751 0.000 160.838 $1,227.19
13-Jul-90 0.038019 D 7.66 3.786 0.798 161.636 $1,238.13
31-Jul-90 7.71 3.836 0.000 161.636 $1,246.21
17-Aug-90 0.043082 D 7.58 3.882 0.919 162.555 $1,232.17
31-Aug-90 7.49 3.921 0.000 162.555 $1,217.54
17-Sep-90 0.037528 D 7.50 3.967 0.813 163.368 $1,225.26
30-Sep-90 7.45 4.003 0.000 163.368 $1,217.09
17-Oct-90 0.038904 D 7.48 4.049 0.850 164.218 $1,228.35
31-Oct-90 7.56 4.088 0.000 164.218 $1,241.49
16-Nov-90 0.041354 D 7.68 4.132 0.884 165.102 $1,267.98
30-Nov-90 7.72 4.170 0.000 165.102 $1,274.59
17-Dec-90 0.037264 D 7.71 4.216 0.798 165.900 $1,279.09
31-Dec-90 7.71 4.255 0.000 165.900 $1,279.09
17-Jan-91 0.040879 D 7.72 4.301 0.878 166.778 $1,287.53
31-Jan-91 7.77 4.340 0.000 166.778 $1,295.87
15-Feb-91 0.041406 D 7.84 4.381 0.881 167.659 $1,314.45
28-Feb-91 7.78 4.416 0.000 167.659 $1,304.39
15-Mar-91 0.034880 D 7.75 4.458 0.755 168.414 $1,305.21
31-Mar-91 7.72 4.501 0.000 168.414 $1,300.16
17-Apr-91 0.040828 D 7.80 4.548 0.882 169.296 $1,320.51
30-Apr-91 7.80 4.584 0.000 169.296 $1,320.51
17-May-91 0.042133 D 7.83 4.630 0.911 170.207 $1,332.72
31-May-91 7.85 4.668 0.000 170.207 $1,336.12
17-Jun-91 0.037261 D 7.71 4.715 0.823 171.030 $1,318.64
30-Jun-91 7.74 4.751 0.000 171.030 $1,323.77
17-Jul-91 0.038752 D 7.77 4.797 0.853 171.883 $1,335.53
31-Jul-91 7.80 4.836 0.000 171.883 $1,340.69
16-Aug-91 0.040979 D 7.86 4.879 0.896 172.779 $1,358.04
31-Aug-91 7.87 4.921 0.000 172.779 $1,359.77
17-Sep-91 0.037997 D 7.90 4.967 0.831 173.610 $1,371.52
30-Sep-91 7.94 5.003 0.000 173.610 $1,378.46
17-Oct-91 0.038153 D 7.96 5.049 0.832 174.442 $1,388.56
31-Oct-91 7.95 5.088 0.000 174.442 $1,386.81
15-Nov-91 0.039756 D 7.93 5.129 0.875 175.317 $1,390.26
15-Nov-91 0.031000 G 7.93 5.129 0.682 175.999 $1,395.67
30-Nov-91 7.88 5.170 0.000 175.999 $1,386.87
17-Dec-91 0.038113 D 7.90 5.216 0.849 176.848 $1,397.10
31-Dec-91 7.99 5.255 0.000 176.848 $1,413.02
17-Jan-92 0.041795 D 7.98 5.301 0.926 177.774 $1,418.64
31-Jan-92 7.95 5.340 0.000 177.774 $1,413.30
17-Feb-92 0.037522 D 7.91 5.386 0.843 178.617 $1,412.86
29-Feb-92 7.93 5.419 0.000 178.617 $1,416.43
18-Mar-92 0.036885 D 7.87 5.468 0.837 179.454 $1,412.30
31-Mar-92 7.90 5.504 0.000 179.454 $1,417.69
16-Apr-92 0.040552 D 7.96 5.548 0.914 180.368 $1,435.73
30-Apr-92 7.93 5.586 0.000 180.368 $1,430.32
15-May-92 0.034701 D 7.99 5.627 0.783 181.151 $1,447.40
31-May-92 7.98 5.671 0.000 181.151 $1,445.58
17-Jun-92 0.038530 D 8.02 5.718 0.870 182.021 $1,459.81
30-Jun-92 8.07 5.753 0.000 182.021 $1,468.91
17-Jul-92 0.040246 D 8.17 5.800 0.897 182.918 $1,494.44
31-Jul-92 8.27 5.838 0.000 182.918 $1,512.73
17-Aug-92 0.036276 D 8.21 5.885 0.808 183.726 $1,508.39
31-Aug-92 8.14 5.923 0.000 183.726 $1,495.53
17-Sep-92 0.039469 D 8.15 5.970 0.890 184.616 $1,504.62
30-Sep-92 8.15 6.005 0.000 184.616 $1,504.62
16-Oct-92 0.037597 D 8.10 6.049 0.857 185.473 $1,502.33
30-Oct-92 7.99 6.088 0.000 185.473 $1,481.93
17-Nov-92 0.104000 G 8.00 6.137 2.411 187.884 $1,503.07
17-Nov-92 0.035537 D 8.00 6.137 0.824 188.708 $1,509.66
30-Nov-92 8.02 6.173 0.000 188.708 $1,513.44
17-Dec-92 0.034607 D 8.04 6.219 0.812 189.520 $1,523.74
31-Dec-92 0.000000 8.07 6.258 0.000 189.520 $1,529.43
15-Jan-93 0.036653 D 8.08 6.299 0.860 190.380 $1,538.27
29-Jan-93 8.12 6.337 0.000 190.380 $1,545.89
17-Feb-93 0.037390 D 8.22 6.389 0.866 191.246 $1,572.04
26-Feb-93 8.36 6.414 0.000 191.246 $1,598.82
17-Mar-93 0.033663 D 8.28 6.466 0.778 192.024 $1,589.96
31-Mar-93 0.000000 8.26 6.504 0.000 192.024 $1,586.12
16-Apr-93 0.039608 D 8.32 6.548 0.914 192.938 $1,605.24
30-Apr-93 8.31 6.586 0.000 192.938 $1,603.31
17-May-93 0.035935 D 8.35 6.633 0.830 193.768 $1,617.96
31-May-93 8.34 6.671 0.000 193.768 $1,616.03
17-Jun-93 0.037595 D 8.40 6.718 0.867 194.635 $1,634.93
30-Jun-93 0.000000 8.43 6.753 0.000 194.635 $1,640.77
16-Jul-93 0.037183 D 8.47 6.797 0.854 195.489 $1,655.79
30-Jul-93 0.000000 8.42 6.836 0.000 195.489 $1,646.02
17-Aug-93 0.035159 D 8.51 6.885 0.808 196.297 $1,670.49
31-Aug-93 0.000000 8.55 6.923 0.000 196.297 $1,678.34
17-Sep-93 0.038907 D 8.65 6.970 0.883 197.180 $1,705.61
30-Sep-93 0.000000 8.64 7.005 0.000 197.180 $1,703.64
15-Oct-93 0.032961 D 8.72 7.047 0.745 197.925 $1,725.91
29-Oct-93 8.61 7.085 0.000 197.925 $1,704.13
17-Nov-93 0.036754 D 8.33 7.137 0.873 198.798 $1,655.99
17-Nov-93 0.174000 G 8.33 7.137 4.134 202.932 $1,690.42
30-Nov-93 0.000000 8.30 7.173 0.000 202.932 $1,684.34
17-Dec-93 0.035726 D 8.38 7.219 0.865 203.797 $1,707.82
31-Dec-93 0.000000 8.40 7.258 0.000 203.797 $1,711.89
17-Jan-94 0.032778 D 8.43 7.304 0.792 204.589 $1,724.69
31-Jan-94 0.000000 8.48 7.342 0.000 204.589 $1,734.91
17-Feb-94 0.035361 D 8.36 7.389 0.865 205.454 $1,717.60
28-Feb-94 0.000000 8.25 7.419 0.000 205.454 $1,695.00
17-Mar-94 0.032223 D 8.11 7.466 0.816 206.270 $1,672.85
31-Mar-94 0.000000 7.86 7.504 0.000 206.270 $1,621.28
15-Apr-94 0.035848 D 7.84 7.545 0.943 207.213 $1,624.55
29-Apr-94 0.000000 7.83 7.584 0.000 207.213 $1,622.48
17-May-94 0.035060 D 7.84 7.633 0.927 208.140 $1,631.82
31-May-94 7.89 7.671 0.000 208.140 $1,642.22
17-Jun-94 0.038231 D 7.94 7.718 1.002 209.142 $1,660.59
30-Jun-94 0.000000 7.80 7.753 0.000 209.142 $1,631.31
15-Jul-94 0.032352 D 7.86 7.795 0.861 210.003 $1,650.62
29-Jul-94 0.000000 7.92 7.833 0.000 210.003 $1,663.22
17-Aug-94 0.035625 D 7.89 7.885 0.948 210.951 $1,664.40
31-Aug-94 0.000000 7.90 7.923 0.000 210.951 $1,666.51
16-Sep-94 0.036487 D 7.77 7.967 0.991 211.942 $1,646.79
30-Sep-94 0.000000 7.71 8.005 0.000 211.942 $1,634.07
17-Oct-94 0.032843 D 7.71 8.052 0.903 212.845 $1,641.03
31-Oct-94 0.000000 7.53 8.090 0.000 212.845 $1,602.72
17-Nov-94 0.035959 D 7.09 8.137 1.080 213.925 $1,516.73
17-Nov-94 0.133000 CG 7.09 8.137 3.993 217.918 $1,545.04
30-Nov-94 0.000000 7.20 8.173 0.000 217.918 $1,569.01
16-Dec-94 0.035352 D 7.34 8.216 1.050 218.968 $1,607.23
31-Dec-94 0.000000 7.39 8.258 0.000 218.968 $1,618.17
17-Jan-95 0.033238 D 7.50 8.304 0.970 219.938 $1,649.54
31-Jan-95 0.000000 7.57 8.342 0.000 219.938 $1,664.93
17-Feb-95 0.037744 D 7.70 8.389 1.078 221.016 $1,701.82
28-Feb-95 0.000000 7.77 8.419 0.000 221.016 $1,717.29
17-Mar-95 0.030820 D 7.80 8.466 0.873 221.889 $1,730.73
31-Mar-95 0.000000 7.80 8.504 0.000 221.889 $1,730.73
17-Apr-95 0.033202 D 7.87 8.551 0.936 222.825 $1,753.63
28-Apr-95 0.000000 7.77 8.581 0.000 222.825 $1,731.35
17-May-95 0.034140 D 7.95 8.633 0.957 223.782 $1,779.07
31-May-95 0.000000 8.00 8.671 0.000 223.782 $1,790.26
16-Jun-95 0.035679 D 7.91 8.715 1.009 224.791 $1,778.10
30-Jun-95 0.000000 7.87 8.753 0.000 224.791 $1,769.11
17-Jul-95 0.032255 D 7.97 8.800 0.910 225.701 $1,798.84
31-Jul-95 0.000000 7.91 8.838 0.000 225.701 $1,785.29
17-Aug-95 0.034922 D 7.82 8.885 1.008 226.709 $1,772.86
31-Aug-95 0.000000 7.95 8.923 0.000 226.709 $1,802.34
15-Sep-95 0.033578 D 8.03 8.964 0.948 227.657 $1,828.09
30-Sep-95 0.000000 7.96 9.005 0.000 227.657 $1,812.15
17-Oct-95 0.031936 D 8.06 9.052 0.902 228.559 $1,842.19
31-Oct-95 0.000000 8.04 9.090 0.000 228.559 $1,837.61
17-Nov-95 0.035952 D 8.06 9.137 1.019 229.578 $1,850.40
17-Nov-95 0.034000 G 8.06 9.137 0.964 230.542 $1,858.17
30-Nov-95 0.000000 8.12 9.173 0.000 230.542 $1,872.00
15-Dec-95 0.030526 D 8.10 9.214 0.869 231.411 $1,874.43
29-Dec-95 0.000000 8.17 9.252 0.000 231.411 $1,890.63
31-Dec-95 0.000000 8.17 9.258 0.000 231.411 $1,890.63
17-Jan-96 0.033923 D 8.15 9.304 0.963 232.374 $1,893.85
31-Jan-96 0.000000 8.16 9.342 0.000 232.374 $1,896.17
16-Feb-96 0.036540 D 8.18 9.386 1.038 233.412 $1,909.31
29-Feb-96 0.000000 8.10 9.422 0.000 233.412 $1,890.64
15-Mar-96 0.030007 D 7.88 9.463 0.889 234.301 $1,846.29
29-Mar-96 0.000000 7.93 9.501 0.000 234.301 $1,858.01
31-Mar-96 0.000000 7.93 9.507 0.000 234.301 $1,858.01
17-Apr-96 0.034354 D 7.88 9.553 1.021 235.322 $1,854.34
30-Apr-96 0.000000 7.87 9.589 0.000 235.322 $1,851.98
17-May-96 0.035316 D 7.92 9.636 1.049 236.371 $1,872.06
31-May-96 0.000000 D 7.85 9.674 0.000 236.371 $1,855.51
17-Jun-96 0.032143 D 7.82 9.721 0.972 237.343 $1,856.02
30-Jun-96 0.000000 7.92 9.756 0.000 237.343 $1,879.76
17-Jul-96 0.033303 D 7.90 9.803 1.001 238.344 $1,882.92
31-Jul-96 7.95 9.841 0.000 238.344 $1,894.83
17-Aug-96 0.035542 D 8.02 9.888 1.056 239.400 $1,919.99
31-Aug-96 7.91 9.926 0.000 239.400 $1,893.65
17-Sep-96 0.033466 D 7.96 9.973 1.007 240.407 $1,913.64
30-Sep-96 0.000000 7.99 10.008 0.000 240.407 $1,920.85
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.75%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,920.85
TOTAL RETURN FOR PERIOD 92.09%
<PAGE>
SELIGMAN MICHIGAN MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $8.97
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- --------- --------- --- ----- ------- -------- --------- -----------
30-Sep-86 8.54 111.483 111.483 $952.06
17-Oct-86 0.290000 G 8.30 0.047 3.895 115.378 $957.64
17-Oct-86 0.051564 D 8.30 0.047 0.693 116.071 $963.39
30-Oct-86 0.000000 8.36 0.082 0.000 116.071 $970.35
17-Nov-86 0.045538 D 8.42 0.132 0.628 116.699 $982.61
30-Nov-86 0.000000 8.45 0.167 0.000 116.699 $986.11
17-Dec-86 0.046163 D 8.38 0.214 0.643 117.342 $983.33
31-Dec-86 8.37 0.252 0.000 117.342 $982.15
19-Jan-87 0.051164 D 8.50 0.304 0.706 118.048 $1,003.41
30-Jan-87 0.000000 8.56 0.334 0.000 118.048 $1,010.49
17-Feb-87 0.044683 D 8.56 0.384 0.616 118.664 $1,015.76
28-Feb-87 0.000000 8.59 0.414 0.000 118.664 $1,019.32
17-Mar-87 0.043249 D 8.59 0.460 0.597 119.261 $1,024.45
31-Mar-87 8.45 0.499 0.000 119.261 $1,007.76
20-Apr-87 0.052590 D 7.90 0.553 0.794 120.055 $948.43
30-Apr-87 0.000000 7.88 0.581 0.000 120.055 $946.03
18-May-87 0.043150 D 7.85 0.630 0.660 120.715 $947.61
30-May-87 0.000000 7.77 0.663 0.000 120.715 $937.96
17-Jun-87 0.046119 D 7.96 0.712 0.699 121.414 $966.46
30-Jun-87 7.95 0.748 0.000 121.414 $965.24
17-Jul-87 0.049388 D 8.02 0.795 0.748 122.162 $979.74
30-Jul-87 0.000000 8.02 0.830 0.000 122.162 $979.74
17-Aug-87 0.044895 D 7.99 0.879 0.686 122.848 $981.56
30-Aug-87 0.000000 7.97 0.915 0.000 122.848 $979.10
17-Sep-87 0.048669 D 7.63 0.964 0.784 123.632 $943.31
30-Sep-87 7.48 1.000 0.000 123.632 $924.77
19-Oct-87 0.117000 G 6.77 1.052 2.137 125.769 $851.46
19-Oct-87 0.050058 D 6.77 1.052 0.914 126.683 $857.64
30-Oct-87 0.000000 7.30 1.082 0.000 126.683 $924.79
17-Nov-87 0.044172 D 7.54 1.132 0.742 127.425 $960.78
30-Nov-87 0.000000 7.54 1.167 0.000 127.425 $960.78
17-Dec-87 0.045162 D 7.51 1.214 0.766 128.191 $962.71
31-Dec-87 7.63 1.252 0.000 128.191 $978.10
18-Jan-88 0.047101 D 7.72 1.301 0.782 128.973 $995.67
30-Jan-88 0.000000 7.93 1.334 0.000 128.973 $1,022.76
17-Feb-88 0.044446 D 7.96 1.384 0.720 129.693 $1,032.36
28-Feb-88 0.000000 8.00 1.414 0.000 129.693 $1,037.54
17-Mar-88 0.042945 D 7.84 1.463 0.710 130.403 $1,022.36
31-Mar-88 7.77 1.501 0.000 130.403 $1,013.23
18-Apr-88 0.047323 D 7.75 1.551 0.796 131.199 $1,016.79
30-Apr-88 0.000000 7.80 1.584 0.000 131.199 $1,023.35
17-May-88 0.042937 D 7.78 1.630 0.724 131.923 $1,026.36
30-May-88 0.000000 7.72 1.666 0.000 131.923 $1,018.45
19-Jun-88 0.049230 D 7.78 1.721 0.835 132.758 $1,032.86
30-Jun-88 7.84 1.751 0.000 132.758 $1,040.82
18-Jul-88 0.042722 D 7.84 1.800 0.723 133.481 $1,046.49
30-Jul-88 0.000000 7.85 1.833 0.000 133.481 $1,047.83
17-Aug-88 0.044844 D 7.80 1.882 0.767 134.248 $1,047.13
30-Aug-88 0.000000 7.82 1.918 0.000 134.248 $1,049.82
19-Sep-88 0.049227 D 7.95 1.973 0.831 135.079 $1,073.88
30-Sep-88 7.94 2.003 0.000 135.079 $1,072.53
17-Oct-88 0.041658 D 8.01 2.049 0.703 135.782 $1,087.61
30-Oct-88 0.000000 8.10 2.085 0.000 135.782 $1,099.83
17-Nov-88 0.025000 G 7.97 2.134 0.426 136.208 $1,085.58
17-Nov-88 0.045896 D 7.97 2.134 0.782 136.990 $1,091.81
30-Nov-88 0.000000 7.92 2.170 0.000 136.990 $1,084.96
19-Dec-88 0.047087 D 7.90 2.222 0.817 137.807 $1,088.68
31-Dec-88 7.98 2.255 0.000 137.807 $1,099.70
17-Jan-89 0.042787 D 8.06 2.301 0.732 138.539 $1,116.62
30-Jan-89 0.000000 8.12 2.337 0.000 138.539 $1,124.94
20-Feb-89 0.050330 D 8.03 2.395 0.868 139.407 $1,119.44
28-Feb-89 0.000000 7.98 2.416 0.000 139.407 $1,112.47
19-Mar-89 0.039869 D 7.92 2.468 0.702 140.109 $1,109.66
31-Mar-89 7.93 2.501 0.000 140.109 $1,111.06
17-Apr-89 0.042554 D 8.01 2.548 0.744 140.853 $1,128.23
30-Apr-89 0.000000 8.10 2.584 0.000 140.853 $1,140.91
17-May-89 0.043777 D 8.17 2.630 0.755 141.608 $1,156.94
30-May-89 0.000000 8.20 2.666 0.000 141.608 $1,161.19
19-Jun-89 0.049437 D 8.26 2.721 0.848 142.456 $1,176.69
30-Jun-89 8.29 2.751 0.000 142.456 $1,180.96
17-Jul-89 0.041711 D 8.31 2.797 0.715 143.171 $1,189.75
30-Jul-89 0.000000 8.34 2.833 0.000 143.171 $1,194.05
17-Aug-89 0.045786 D 8.23 2.882 0.797 143.968 $1,184.86
31-Aug-89 8.19 2.921 0.000 143.968 $1,179.10
18-Sep-89 0.048158 D 8.19 2.970 0.847 144.815 $1,186.03
30-Sep-89 8.14 3.003 0.000 144.815 $1,178.79
17-Oct-89 0.042479 D 8.20 3.049 0.750 145.565 $1,193.63
31-Oct-89 8.16 3.088 0.000 145.565 $1,187.81
17-Nov-89 0.047576 D 8.12 3.134 0.853 146.418 $1,188.91
17-Nov-89 0.093000 G 8.12 3.134 1.667 148.085 $1,202.45
30-Nov-89 8.16 3.170 0.000 148.085 $1,208.37
18-Dec-89 0.041643 D 8.18 3.219 0.754 148.839 $1,217.50
31-Dec-89 8.18 3.255 0.000 148.839 $1,217.50
17-Jan-90 0.042607 D 8.13 3.301 0.780 149.619 $1,216.40
31-Jan-90 8.05 3.340 0.000 149.619 $1,204.43
20-Feb-90 0.051617 D 8.05 3.395 0.959 150.578 $1,212.15
28-Feb-90 8.09 3.416 0.000 150.578 $1,218.18
19-Mar-90 0.039654 D 8.05 3.468 0.742 151.320 $1,218.13
31-Mar-90 8.04 3.501 0.000 151.320 $1,216.61
17-Apr-90 0.041854 D 8.03 3.548 0.789 152.109 $1,221.44
30-Apr-90 7.88 3.584 0.000 152.109 $1,198.62
17-May-90 0.042855 D 8.05 3.630 0.810 152.919 $1,231.00
31-May-90 8.07 3.668 0.000 152.919 $1,234.06
18-Jun-90 0.044531 D 8.10 3.718 0.841 153.760 $1,245.46
30-Jun-90 8.10 3.751 0.000 153.760 $1,245.46
17-Jul-90 0.040635 D 8.15 3.797 0.767 154.527 $1,259.40
31-Jul-90 8.19 3.836 0.000 154.527 $1,265.58
17-Aug-90 0.046737 D 8.04 3.882 0.898 155.425 $1,249.62
31-Aug-90 7.96 3.921 0.000 155.425 $1,237.18
17-Sep-90 0.041095 D 7.98 3.967 0.800 156.225 $1,246.68
30-Sep-90 7.89 4.003 0.000 156.225 $1,232.62
17-Oct-90 0.042506 D 7.92 4.049 0.838 157.063 $1,243.94
31-Oct-90 8.00 4.088 0.000 157.063 $1,256.50
16-Nov-90 0.018000 G 8.10 4.132 0.349 157.412 $1,275.04
16-Nov-90 0.045605 D 8.10 4.132 0.884 158.296 $1,282.20
30-Nov-90 8.11 4.170 0.000 158.296 $1,283.78
17-Dec-90 0.041141 D 8.11 4.216 0.803 159.099 $1,290.29
31-Dec-90 8.10 4.255 0.000 159.099 $1,288.70
17-Jan-91 0.044375 D 8.13 4.301 0.868 159.967 $1,300.53
31-Jan-91 8.16 4.340 0.000 159.967 $1,305.33
15-Feb-91 0.045526 D 8.25 4.381 0.883 160.850 $1,327.01
28-Feb-91 8.17 4.416 0.000 160.850 $1,314.14
15-Mar-91 0.038066 D 8.16 4.458 0.750 161.600 $1,318.66
31-Mar-91 8.14 4.501 0.000 161.600 $1,315.42
17-Apr-91 0.043322 D 8.22 4.548 0.852 162.452 $1,335.36
30-Apr-91 8.24 4.584 0.000 162.452 $1,338.60
17-May-91 0.044886 D 8.25 4.630 0.884 163.336 $1,347.52
31-May-91 8.26 4.668 0.000 163.336 $1,349.16
17-Jun-91 0.040487 D 8.17 4.715 0.809 164.145 $1,341.06
30-Jun-91 8.19 4.751 0.000 164.145 $1,344.35
17-Jul-91 0.042375 D 8.23 4.797 0.845 164.990 $1,357.87
31-Jul-91 8.26 4.836 0.000 164.990 $1,362.82
16-Aug-91 0.044853 D 8.30 4.879 0.892 165.882 $1,376.82
31-Aug-91 8.31 4.921 0.000 165.882 $1,378.48
17-Sep-91 0.041466 D 8.34 4.967 0.825 166.707 $1,390.34
30-Sep-91 8.38 5.003 0.000 166.707 $1,397.00
17-Oct-91 0.041579 D 8.43 5.049 0.822 167.529 $1,412.27
31-Oct-91 8.43 5.088 0.000 167.529 $1,412.27
15-Nov-91 0.043296 D 8.39 5.129 0.865 168.394 $1,412.83
15-Nov-91 0.049000 G 8.39 5.129 0.978 169.372 $1,421.03
30-Nov-91 8.34 5.170 0.000 169.372 $1,412.56
17-Dec-91 0.041750 D 8.38 5.216 0.844 170.216 $1,426.41
31-Dec-91 8.48 5.255 0.000 170.216 $1,443.43
17-Jan-92 0.045876 D 8.48 5.301 0.921 171.137 $1,451.24
31-Jan-92 8.44 5.340 0.000 171.137 $1,444.40
14-Feb-92 0.039957 D 8.39 5.378 0.815 171.952 $1,442.68
29-Feb-92 8.40 5.419 0.000 171.952 $1,444.40
17-Mar-92 0.040222 D 8.33 5.466 0.830 172.782 $1,439.27
31-Mar-92 8.37 5.504 0.000 172.782 $1,446.19
16-Apr-92 0.046142 D 8.44 5.548 0.945 173.727 $1,466.26
30-Apr-92 8.39 5.586 0.000 173.727 $1,457.57
15-May-92 0.038326 D 8.46 5.627 0.787 174.514 $1,476.39
31-May-92 8.45 5.671 0.000 174.514 $1,474.64
17-Jun-92 0.041699 D 8.50 5.718 0.856 175.370 $1,490.65
30-Jun-92 8.58 5.753 0.000 175.370 $1,504.67
17-Jul-92 0.043803 D 8.73 5.800 0.880 176.250 $1,538.66
31-Jul-92 8.85 5.838 0.000 176.250 $1,559.81
17-Aug-92 0.039859 D 8.75 5.885 0.803 177.053 $1,549.21
31-Aug-92 8.68 5.923 0.000 177.053 $1,536.82
17-Sep-92 0.042719 D 8.68 5.970 0.871 177.924 $1,544.38
30-Sep-92 8.68 6.005 0.000 177.924 $1,544.38
16-Oct-92 0.041410 D 8.63 6.049 0.854 178.778 $1,542.85
30-Oct-92 0.000000 8.51 6.088 0.000 178.778 $1,521.40
17-Nov-92 0.039887 D 8.47 6.137 0.842 179.620 $1,521.38
17-Nov-92 0.193000 G 8.47 6.137 4.074 183.694 $1,555.89
30-Nov-92 8.49 6.173 0.000 183.694 $1,559.56
17-Dec-92 0.039605 D 8.52 6.219 0.854 184.548 $1,572.35
31-Dec-92 0.000000 8.55 6.258 0.000 184.548 $1,577.89
15-Jan-93 0.041158 D 8.55 6.299 0.888 185.436 $1,585.48
29-Jan-93 8.59 6.337 0.000 185.436 $1,592.90
17-Feb-93 0.041293 D 8.71 6.389 0.879 186.315 $1,622.80
26-Feb-93 8.86 6.414 0.000 186.315 $1,650.75
17-Mar-93 0.036230 D 8.76 6.466 0.771 187.086 $1,638.87
31-Mar-93 0.000000 8.72 6.504 0.000 187.086 $1,631.39
16-Apr-93 0.041084 D 8.83 6.548 0.870 187.956 $1,659.65
30-Apr-93 8.80 6.586 0.000 187.956 $1,654.01
17-May-93 0.037514 D 8.82 6.633 0.799 188.755 $1,664.82
31-May-93 8.82 6.671 0.000 188.755 $1,664.82
17-Jun-93 0.039837 D 8.87 6.718 0.848 189.603 $1,681.78
30-Jun-93 0.000000 8.92 6.753 0.000 189.603 $1,691.26
16-Jul-93 0.039824 D 8.95 6.797 0.844 190.447 $1,704.50
30-Jul-93 0.000000 8.88 6.836 0.000 190.447 $1,691.17
17-Aug-93 0.038518 D 8.99 6.885 0.816 191.263 $1,719.45
31-Aug-93 0.000000 9.03 6.923 0.000 191.263 $1,727.10
17-Sep-93 0.042197 D 9.09 6.970 0.888 192.151 $1,746.65
30-Sep-93 0.000000 9.08 7.005 0.000 192.151 $1,744.73
15-Oct-93 0.035283 D 9.15 7.047 0.741 192.892 $1,764.96
29-Oct-93 9.06 7.085 0.000 192.892 $1,747.60
17-Nov-93 0.039391 D 8.88 7.137 0.856 193.748 $1,720.48
17-Nov-93 0.088000 G 8.88 7.137 1.912 195.660 $1,737.46
30-Nov-93 0.000000 8.85 7.173 0.000 195.660 $1,731.59
17-Dec-93 0.040146 D 8.92 7.219 0.881 196.541 $1,753.15
31-Dec-93 0.000000 8.95 7.258 0.000 196.541 $1,759.04
17-Jan-94 0.036406 D 8.96 7.304 0.799 197.340 $1,768.17
31-Jan-94 0.000000 9.03 7.342 0.000 197.340 $1,781.98
17-Feb-94 0.038840 D 8.89 7.389 0.862 198.202 $1,762.02
28-Feb-94 0.000000 8.78 7.419 0.000 198.202 $1,740.21
17-Mar-94 0.035225 D 8.64 7.466 0.808 199.010 $1,719.45
31-Mar-94 0.000000 8.43 7.504 0.000 199.010 $1,677.65
15-Apr-94 0.039054 D 8.42 7.545 0.923 199.933 $1,683.44
29-Apr-94 0.000000 8.40 7.584 0.000 199.933 $1,679.44
17-May-94 0.038103 D 8.42 7.633 0.905 200.838 $1,691.06
31-May-94 8.46 7.671 0.000 200.838 $1,699.09
17-Jun-94 0.041708 D 8.51 7.718 0.984 201.822 $1,717.51
30-Jun-94 0.000000 8.36 7.753 0.000 201.822 $1,687.23
15-Jul-94 0.035473 D 8.42 7.795 0.850 202.672 $1,706.50
29-Jul-94 0.000000 8.48 7.833 0.000 202.672 $1,718.66
17-Aug-94 0.039433 D 8.45 7.885 0.946 203.618 $1,720.57
31-Aug-94 0.000000 8.46 7.923 0.000 203.618 $1,722.61
16-Sep-94 0.040461 D 8.33 7.967 0.989 204.607 $1,704.38
30-Sep-94 0.000000 8.28 8.005 0.000 204.607 $1,694.15
17-Oct-94 0.035999 D 8.25 8.052 0.893 205.500 $1,695.38
31-Oct-94 0.000000 8.07 8.090 0.000 205.500 $1,658.39
17-Nov-94 0.039472 D 7.72 8.137 1.051 206.551 $1,594.57
17-Nov-94 0.043000 CG 7.72 8.137 1.145 207.696 $1,603.41
30-Nov-94 0.000000 7.85 8.173 0.000 207.696 $1,630.41
16-Dec-94 0.039607 D 7.98 8.216 1.031 208.727 $1,665.64
31-Dec-94 0.000000 8.02 8.258 0.000 208.727 $1,673.99
17-Jan-95 0.037966 D 8.14 8.304 0.974 209.701 $1,706.97
31-Jan-95 0.000000 8.23 8.342 0.000 209.701 $1,725.84
17-Feb-95 0.042935 D 8.34 8.389 1.080 210.781 $1,757.91
28-Feb-95 0.000000 8.41 8.419 0.000 210.781 $1,772.67
17-Mar-95 0.034052 D 8.44 8.466 0.850 211.631 $1,786.17
31-Mar-95 0.000000 8.43 8.504 0.000 211.631 $1,784.05
17-Apr-95 0.036758 D 8.50 8.551 0.915 212.546 $1,806.64
28-Apr-95 0.000000 8.39 8.581 0.000 212.546 $1,783.26
17-May-95 0.038506 D 8.58 8.633 0.954 213.500 $1,831.83
31-May-95 0.000000 8.61 8.671 0.000 213.500 $1,838.24
16-Jun-95 0.040374 D 8.50 8.715 1.014 214.514 $1,823.37
30-Jun-95 0.000000 8.46 8.753 0.000 214.514 $1,814.79
17-Jul-95 0.035884 D 8.54 8.800 0.901 215.415 $1,839.64
31-Jul-95 0.000000 8.47 8.838 0.000 215.415 $1,824.57
17-Aug-95 0.038620 D 8.38 8.885 0.993 216.408 $1,813.50
31-Aug-95 0.000000 8.53 8.923 0.000 216.408 $1,845.96
15-Sep-95 0.036857 D 8.61 8.964 0.926 217.334 $1,871.25
30-Sep-95 8.54 9.005 0.000 217.334 $1,856.03
17-Oct-95 0.036064 D 8.68 9.052 0.903 218.237 $1,894.30
31-Oct-95 0.000000 8.64 9.090 0.000 218.237 $1,885.57
17-Nov-95 0.040612 D 8.55 9.137 1.037 219.274 $1,874.79
17-Nov-95 0.143000 G 8.55 9.137 3.650 222.924 $1,906.00
30-Nov-95 0.000000 8.61 9.173 0.000 222.924 $1,919.38
15-Dec-95 0.034085 D 8.59 9.214 0.885 223.809 $1,922.52
29-Dec-95 0.000000 8.66 9.252 0.000 223.809 $1,938.19
31-Dec-95 0.000000 8.66 9.258 0.000 223.809 $1,938.19
17-Jan-96 0.037863 D 8.64 9.304 0.981 224.790 $1,942.19
31-Jan-96 0.000000 8.67 9.342 0.000 224.790 $1,948.93
16-Feb-96 0.040384 D 8.68 9.386 1.046 225.836 $1,960.26
29-Feb-96 0.000000 8.59 9.422 0.000 225.836 $1,939.93
15-Mar-96 0.032937 D 8.33 9.463 0.893 226.729 $1,888.65
29-Mar-96 0.000000 8.41 9.501 0.000 226.729 $1,906.79
31-Mar-96 0.000000 8.41 9.507 0.000 226.729 $1,906.79
17-Apr-96 0.037900 D 8.35 9.553 1.029 227.758 $1,901.78
30-Apr-96 0.000000 8.33 9.589 0.000 227.758 $1,897.22
17-May-96 0.038845 D 8.37 9.636 1.057 228.815 $1,915.18
31-May-96 0.000000 D 8.30 9.674 0.000 228.815 $1,899.16
17-Jun-96 0.035663 D 8.25 9.721 0.989 229.804 $1,895.88
30-Jun-96 0.000000 8.36 9.756 0.000 229.804 $1,921.16
17-Jul-96 0.036962 D 8.35 9.803 1.017 230.821 $1,927.36
31-Jul-96 8.40 9.841 0.000 230.821 $1,938.90
17-Aug-96 0.039379 D 8.46 9.888 1.074 231.895 $1,961.83
31-Aug-96 8.35 9.926 0.000 231.895 $1,936.32
17-Sep-96 0.036760 D 8.42 9.973 1.012 232.907 $1,961.08
30-Sep-96 0.000000 8.46 10.008 0.000 232.907 $1,970.39
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 7.02%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VA $1,970.39
TOTAL RETURN FOR PERIOD 97.04%
<PAGE>
SELIGMAN MINNESOTA MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $8.39
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- --------- --------- --- ----- ------- -------- --------- -----------
30-Sep-86 7.99 119.190 119.190 $952.33
17-Oct-86 0.214000 G 7.81 0.047 3.266 122.456 $956.38
17-Oct-86 0.048769 D 7.81 0.047 0.744 123.200 $962.19
30-Oct-86 0.000000 7.91 0.082 0.000 123.200 $974.51
17-Nov-86 0.041608 D 7.94 0.132 0.646 123.846 $983.34
30-Nov-86 0.000000 7.99 0.167 0.000 123.846 $989.53
17-Dec-86 0.043420 D 7.92 0.214 0.679 124.525 $986.24
31-Dec-86 7.90 0.252 0.000 124.525 $983.75
19-Jan-87 0.049015 D 8.02 0.304 0.761 125.286 $1,004.79
30-Jan-87 0.000000 8.07 0.334 0.000 125.286 $1,011.06
17-Feb-87 0.043070 D 8.05 0.384 0.670 125.956 $1,013.95
28-Feb-87 0.000000 8.09 0.414 0.000 125.956 $1,018.98
17-Mar-87 0.039939 D 8.13 0.460 0.619 126.575 $1,029.05
31-Mar-87 8.00 0.499 0.000 126.575 $1,012.60
20-Apr-87 0.048863 D 7.52 0.553 0.822 127.397 $958.03
30-Apr-87 0.000000 7.47 0.581 0.000 127.397 $951.66
18-May-87 0.041524 D 7.45 0.630 0.710 128.107 $954.40
30-May-87 0.000000 7.31 0.663 0.000 128.107 $936.46
17-Jun-87 0.042966 D 7.49 0.712 0.735 128.842 $965.03
30-Jun-87 7.51 0.748 0.000 128.842 $967.60
17-Jul-87 0.046776 D 7.55 0.795 0.798 129.640 $978.78
30-Jul-87 0.000000 7.53 0.830 0.000 129.640 $976.19
17-Aug-87 0.041677 D 7.54 0.879 0.717 130.357 $982.89
30-Aug-87 0.000000 7.54 0.915 0.000 130.357 $982.89
17-Sep-87 0.044495 D 7.22 0.964 0.803 131.160 $946.98
30-Sep-87 7.12 1.000 0.000 131.160 $933.86
19-Oct-87 0.044916 D 6.50 1.052 0.906 132.066 $858.43
19-Oct-87 0.084000 G 6.50 1.052 1.695 133.761 $869.45
30-Oct-87 0.000000 7.01 1.082 0.000 133.761 $937.66
17-Nov-87 0.041492 D 7.19 1.132 0.772 134.533 $967.29
30-Nov-87 0.000000 7.21 1.167 0.000 134.533 $969.98
17-Dec-87 0.042480 D 7.14 1.214 0.800 135.333 $966.28
31-Dec-87 7.23 1.252 0.000 135.333 $978.46
18-Jan-88 0.043257 D 7.33 1.301 0.799 136.132 $997.85
30-Jan-88 0.000000 7.52 1.334 0.000 136.132 $1,023.71
17-Feb-88 0.040867 D 7.52 1.384 0.740 136.872 $1,029.28
28-Feb-88 0.000000 7.56 1.414 0.000 136.872 $1,034.75
17-Mar-88 0.040206 D 7.43 1.463 0.741 137.613 $1,022.46
31-Mar-88 7.38 1.501 0.000 137.613 $1,015.58
18-Apr-88 0.044781 D 7.35 1.551 0.838 138.451 $1,017.61
30-Apr-88 0.000000 7.40 1.584 0.000 138.451 $1,024.54
17-May-88 0.040357 D 7.38 1.630 0.757 139.208 $1,027.36
30-May-88 0.000000 7.36 1.666 0.000 139.208 $1,024.57
19-Jun-88 0.045548 D 7.41 1.721 0.856 140.064 $1,037.87
30-Jun-88 7.42 1.751 0.000 140.064 $1,039.27
18-Jul-88 0.039888 D 7.41 1.800 0.754 140.818 $1,043.46
30-Jul-88 0.000000 7.43 1.833 0.000 140.818 $1,046.28
17-Aug-88 0.042399 D 7.38 1.882 0.809 141.627 $1,045.21
30-Aug-88 0.000000 7.39 1.918 0.000 141.627 $1,046.62
19-Sep-88 0.046950 D 7.51 1.973 0.885 142.512 $1,070.27
30-Sep-88 7.52 2.003 0.000 142.512 $1,071.69
17-Oct-88 0.039512 D 7.58 2.049 0.743 143.255 $1,085.87
30-Oct-88 0.000000 7.63 2.085 0.000 143.255 $1,093.04
17-Nov-88 0.042938 D 7.51 2.134 0.819 144.074 $1,082.00
17-Nov-88 0.027000 G 7.51 2.134 0.515 144.589 $1,085.86
30-Nov-88 0.000000 7.49 2.170 0.000 144.589 $1,082.97
19-Dec-88 0.044449 D 7.48 2.222 0.859 145.448 $1,087.95
31-Dec-88 7.55 2.255 0.000 145.448 $1,098.13
17-Jan-89 0.040486 D 7.61 2.301 0.774 146.222 $1,112.75
30-Jan-89 0.000000 7.65 2.337 0.000 146.222 $1,118.60
20-Feb-89 0.046935 D 7.55 2.395 0.909 147.131 $1,110.84
28-Feb-89 0.000000 7.51 2.416 0.000 147.131 $1,104.95
19-Mar-89 0.037397 D 7.47 2.468 0.737 147.868 $1,104.57
31-Mar-89 7.46 2.501 0.000 147.868 $1,103.10
17-Apr-89 0.039644 D 7.52 2.548 0.780 148.648 $1,117.83
30-Apr-89 0.000000 7.62 2.584 0.000 148.648 $1,132.70
17-May-89 0.041352 D 7.69 2.630 0.799 149.447 $1,149.25
30-May-89 0.000000 7.74 2.666 0.000 149.447 $1,156.72
19-Jun-89 0.045029 D 7.77 2.721 0.866 150.313 $1,167.93
30-Jun-89 7.78 2.751 0.000 150.313 $1,169.44
17-Jul-89 0.037685 D 7.80 2.797 0.726 151.039 $1,178.10
30-Jul-89 0.000000 7.83 2.833 0.000 151.039 $1,182.64
17-Aug-89 0.042641 D 7.72 2.882 0.834 151.873 $1,172.46
31-Aug-89 7.68 2.921 0.000 151.873 $1,166.38
18-Sep-89 0.045082 D 7.67 2.970 0.893 152.766 $1,171.72
30-Sep-89 7.60 3.003 0.000 152.766 $1,161.02
17-Oct-89 0.039998 D 7.71 3.049 0.793 153.559 $1,183.94
31-Oct-89 7.66 3.088 0.000 153.559 $1,176.26
17-Nov-89 0.044407 D 7.67 3.134 0.889 154.448 $1,184.62
17-Nov-89 0.055000 G 7.67 3.134 1.101 155.549 $1,193.06
30-Nov-89 7.71 3.170 0.000 155.549 $1,199.28
18-Dec-89 0.038018 D 7.72 3.219 0.766 156.315 $1,206.75
31-Dec-89 7.72 3.255 0.000 156.315 $1,206.75
17-Jan-90 0.038765 D 7.67 3.301 0.790 157.105 $1,205.00
31-Jan-90 7.61 3.340 0.000 157.105 $1,195.57
20-Feb-90 0.046982 D 7.63 3.395 0.967 158.072 $1,206.09
28-Feb-90 7.66 3.416 0.000 158.072 $1,210.83
19-Mar-90 0.036656 D 7.61 3.468 0.761 158.833 $1,208.72
31-Mar-90 7.60 3.501 0.000 158.833 $1,207.13
17-Apr-90 0.039189 D 7.59 3.548 0.820 159.653 $1,211.77
30-Apr-90 7.46 3.584 0.000 159.653 $1,191.01
17-May-90 0.040091 D 7.61 3.630 0.841 160.494 $1,221.36
31-May-90 7.62 3.668 0.000 160.494 $1,222.96
18-Jun-90 0.042201 D 7.65 3.718 0.885 161.379 $1,234.55
30-Jun-90 7.65 3.751 0.000 161.379 $1,234.55
17-Jul-90 0.038599 D 7.68 3.797 0.811 162.190 $1,245.62
31-Jul-90 7.71 3.836 0.000 162.190 $1,250.48
17-Aug-90 0.044359 D 7.60 3.882 0.947 163.137 $1,239.84
31-Aug-90 7.52 3.921 0.000 163.137 $1,226.79
17-Sep-90 0.039151 D 7.55 3.967 0.846 163.983 $1,238.07
30-Sep-90 7.49 4.003 0.000 163.983 $1,228.23
17-Oct-90 0.040430 D 7.53 4.049 0.880 164.863 $1,241.42
31-Oct-90 7.60 4.088 0.000 164.863 $1,252.96
16-Nov-90 0.005000 G 7.70 4.132 0.107 164.970 $1,270.27
16-Nov-90 0.043076 D 7.70 4.132 0.922 165.892 $1,277.37
30-Nov-90 7.72 4.170 0.000 165.892 $1,280.69
17-Dec-90 0.038715 D 7.71 4.216 0.833 166.725 $1,285.45
31-Dec-90 7.71 4.255 0.000 166.725 $1,285.45
17-Jan-91 0.041709 D 7.74 4.301 0.898 167.623 $1,297.40
31-Jan-91 7.78 4.340 0.000 167.623 $1,304.11
15-Feb-91 0.043097 D 7.86 4.381 0.919 168.542 $1,324.74
28-Feb-91 7.77 4.416 0.000 168.542 $1,309.57
15-Mar-91 0.035949 D 7.72 4.458 0.785 169.327 $1,307.20
31-Mar-91 7.69 4.501 0.000 169.327 $1,302.12
17-Apr-91 0.041045 D 7.77 4.548 0.894 170.221 $1,322.62
30-Apr-91 7.77 4.584 0.000 170.221 $1,322.62
17-May-91 0.042724 D 7.77 4.630 0.936 171.157 $1,329.89
31-May-91 7.78 4.668 0.000 171.157 $1,331.60
17-Jun-91 0.038291 D 7.67 4.715 0.854 172.011 $1,319.32
30-Jun-91 7.71 4.751 0.000 172.011 $1,326.20
17-Jul-91 0.039917 D 7.74 4.797 0.887 172.898 $1,338.23
31-Jul-91 7.76 4.836 0.000 172.898 $1,341.69
16-Aug-91 0.042263 D 7.80 4.879 0.937 173.835 $1,355.91
31-Aug-91 7.80 4.921 0.000 173.835 $1,355.91
17-Sep-91 0.039372 D 7.80 4.967 0.877 174.712 $1,362.75
30-Sep-91 7.81 5.003 0.000 174.712 $1,364.50
17-Oct-91 0.039489 D 7.82 5.049 0.882 175.594 $1,373.15
31-Oct-91 7.81 5.088 0.000 175.594 $1,371.39
15-Nov-91 0.040821 D 7.71 5.129 0.930 176.524 $1,361.00
15-Nov-91 0.010000 G 7.71 5.129 0.228 176.752 $1,362.76
30-Nov-91 7.68 5.170 0.000 176.752 $1,357.46
17-Dec-91 0.039645 D 7.70 5.216 0.910 177.662 $1,368.00
31-Dec-91 7.78 5.255 0.000 177.662 $1,382.21
17-Jan-92 0.043788 D 7.79 5.301 0.999 178.661 $1,391.77
31-Jan-92 7.76 5.340 0.000 178.661 $1,386.41
14-Feb-92 0.038880 D 7.75 5.378 0.896 179.557 $1,391.57
29-Feb-92 7.78 5.419 0.000 179.557 $1,396.95
17-Mar-92 0.039536 D 7.74 5.466 0.917 180.474 $1,396.87
31-Mar-92 7.74 5.504 0.000 180.474 $1,396.87
16-Apr-92 0.044800 D 7.80 5.548 1.037 181.511 $1,415.79
30-Apr-92 7.75 5.586 0.000 181.511 $1,406.71
15-May-92 0.037577 D 7.76 5.627 0.879 182.390 $1,415.35
31-May-92 7.74 5.671 0.000 182.390 $1,411.70
17-Jun-92 0.041688 D 7.81 5.718 0.974 183.364 $1,432.07
30-Jun-92 7.85 5.753 0.000 183.364 $1,439.41
17-Jul-92 0.044197 D 7.97 5.800 1.017 184.381 $1,469.52
31-Jul-92 8.05 5.838 0.000 184.381 $1,484.27
17-Aug-92 0.039101 D 7.97 5.885 0.905 185.286 $1,476.73
31-Aug-92 7.91 5.923 0.000 185.286 $1,465.61
17-Sep-92 0.042152 D 7.91 5.970 0.987 186.273 $1,473.42
30-Sep-92 7.89 6.005 0.000 186.273 $1,469.69
16-Oct-92 0.040222 D 7.86 6.049 0.953 187.226 $1,471.60
30-Oct-92 7.74 6.088 0.000 187.226 $1,449.13
17-Nov-92 0.122000 G 7.75 6.137 2.947 190.173 $1,473.84
17-Nov-92 0.038158 D 7.75 6.137 0.922 191.095 $1,480.99
30-Nov-92 7.71 6.173 0.000 191.095 $1,473.34
17-Dec-92 0.038024 D 7.72 6.219 0.941 192.036 $1,482.52
31-Dec-92 0.000000 7.75 6.258 0.000 192.036 $1,488.28
15-Jan-93 0.040041 D 7.76 6.299 0.991 193.027 $1,497.89
29-Jan-93 7.81 6.337 0.000 193.027 $1,507.54
17-Feb-93 0.039951 D 7.90 6.389 0.976 194.003 $1,532.62
26-Feb-93 8.04 6.414 0.000 194.003 $1,559.78
17-Mar-93 0.036811 D 7.97 6.466 0.896 194.899 $1,553.35
31-Mar-93 0.000000 7.95 6.504 0.000 194.899 $1,549.45
16-Apr-93 0.041897 D 8.04 6.548 1.016 195.915 $1,575.16
30-Apr-93 8.02 6.586 0.000 195.915 $1,571.24
17-May-93 0.037088 D 8.03 6.633 0.905 196.820 $1,580.46
31-May-93 8.04 6.671 0.000 196.820 $1,582.43
17-Jun-93 0.039394 D 8.07 6.718 0.961 197.781 $1,596.09
30-Jun-93 0.000000 8.13 6.753 0.000 197.781 $1,607.96
16-Jul-93 0.039442 D 8.15 6.797 0.957 198.738 $1,619.71
30-Jul-93 0.000000 8.11 6.836 0.000 198.738 $1,611.77
17-Aug-93 0.038153 D 8.18 6.885 0.927 199.665 $1,633.26
31-Aug-93 0.000000 8.23 6.923 0.000 199.665 $1,643.24
17-Sep-93 0.042259 D 8.27 6.970 1.020 200.685 $1,659.66
30-Sep-93 0.000000 8.28 7.005 0.000 200.685 $1,661.67
15-Oct-93 0.035539 D 8.33 7.047 0.856 201.541 $1,678.84
29-Oct-93 8.29 7.085 0.000 201.541 $1,670.77
17-Nov-93 0.039478 D 8.12 7.137 0.980 202.521 $1,644.47
17-Nov-93 0.119000 G 8.12 7.137 2.954 205.475 $1,668.46
30-Nov-93 0.000000 8.09 7.173 0.000 205.475 $1,662.29
17-Dec-93 0.039864 D 8.15 7.219 1.005 206.480 $1,682.81
31-Dec-93 0.000000 8.18 7.258 0.000 206.480 $1,689.01
17-Jan-94 0.036169 D 8.19 7.304 0.912 207.392 $1,698.54
31-Jan-94 0.000000 8.23 7.342 0.000 207.392 $1,706.84
17-Feb-94 0.038354 D 8.15 7.389 0.976 208.368 $1,698.20
28-Feb-94 0.000000 8.06 7.419 0.000 208.368 $1,679.45
17-Mar-94 0.034576 D 7.95 7.466 0.906 209.274 $1,663.73
31-Mar-94 0.000000 7.81 7.504 0.000 209.274 $1,634.43
15-Apr-94 0.038119 D 7.77 7.545 1.027 210.301 $1,634.04
29-Apr-94 0.000000 7.77 7.584 0.000 210.301 $1,634.04
17-May-94 0.037233 D 7.79 7.633 1.005 211.306 $1,646.07
31-May-94 7.82 7.671 0.000 211.306 $1,652.41
17-Jun-94 0.040415 D 7.85 7.718 1.088 212.394 $1,667.29
30-Jun-94 0.000000 7.75 7.753 0.000 212.394 $1,646.05
15-Jul-94 0.034493 D 7.79 7.795 0.940 213.334 $1,661.87
29-Jul-94 0.000000 7.83 7.833 0.000 213.334 $1,670.41
17-Aug-94 0.038862 D 7.82 7.885 1.060 214.394 $1,676.56
31-Aug-94 0.000000 7.84 7.923 0.000 214.394 $1,680.85
16-Sep-94 0.039775 D 7.76 7.967 1.099 215.493 $1,672.23
30-Sep-94 0.000000 7.72 8.005 0.000 215.493 $1,663.61
17-Oct-94 0.036163 D 7.70 8.052 1.012 216.505 $1,667.09
31-Oct-94 0.000000 7.58 8.090 0.000 216.505 $1,641.11
17-Nov-94 0.014000 CG 7.37 8.137 0.411 216.916 $1,598.67
17-Nov-94 0.038964 D 7.37 8.137 1.145 218.061 $1,607.11
30-Nov-94 0.000000 7.43 8.173 0.000 218.061 $1,620.19
16-Dec-94 0.038878 D 7.49 8.216 1.132 219.193 $1,641.76
31-Dec-94 0.000000 7.51 8.258 0.000 219.193 $1,646.14
17-Jan-95 0.037383 D 7.57 8.304 1.082 220.275 $1,667.48
31-Jan-95 0.000000 7.63 8.342 0.000 220.275 $1,680.70
17-Feb-95 0.042393 D 7.72 8.389 1.210 221.485 $1,709.86
28-Feb-95 0.000000 7.74 8.419 0.000 221.485 $1,714.29
17-Mar-95 0.033805 D 7.76 8.466 0.965 222.450 $1,726.21
31-Mar-95 0.000000 7.77 8.504 0.000 222.450 $1,728.44
17-Apr-95 0.036411 D 7.80 8.551 1.038 223.488 $1,743.21
28-Apr-95 0.000000 7.73 8.581 0.000 223.488 $1,727.56
17-May-95 0.037949 D 7.84 8.633 1.082 224.570 $1,760.63
31-May-95 0.000000 7.86 8.671 0.000 224.570 $1,765.12
16-Jun-95 0.039595 D 7.82 8.715 1.137 225.707 $1,765.03
30-Jun-95 0.000000 7.80 8.753 0.000 225.707 $1,760.51
17-Jul-95 0.035555 D 7.83 8.800 1.025 226.732 $1,775.31
31-Jul-95 0.000000 7.80 8.838 0.000 226.732 $1,768.51
17-Aug-95 0.038048 D 7.78 8.885 1.109 227.841 $1,772.60
31-Aug-95 0.000000 7.83 8.923 0.000 227.841 $1,784.00
15-Sep-95 0.037446 D 7.88 8.964 1.083 228.924 $1,803.92
30-Sep-95 7.82 9.005 0.000 228.924 $1,790.19
17-Oct-95 0.035918 D 7.84 9.052 1.049 229.973 $1,802.99
31-Oct-95 0.000000 7.81 9.090 0.000 229.973 $1,796.09
17-Nov-95 0.020000 G 7.82 9.137 0.588 230.561 $1,802.99
17-Nov-95 0.039865 D 7.82 9.137 1.172 231.733 $1,812.15
30-Nov-95 0.000000 7.85 9.173 0.000 231.733 $1,819.10
15-Dec-95 0.033703 D 7.84 9.214 0.996 232.729 $1,824.60
29-Dec-95 0.000000 7.88 9.252 0.000 232.729 $1,833.90
31-Dec-95 0.000000 7.88 9.258 0.000 232.729 $1,833.90
17-Jan-96 0.037591 D 7.85 9.304 1.114 233.843 $1,835.67
31-Jan-96 0.000000 7.85 9.342 0.000 233.843 $1,835.67
16-Feb-96 0.039306 D 7.87 9.386 1.168 235.011 $1,849.54
29-Feb-96 0.000000 7.80 9.422 0.000 235.011 $1,833.09
15-Mar-96 0.030341 D 7.63 9.463 0.935 235.946 $1,800.27
29-Mar-96 0.000000 7.68 9.501 0.000 235.946 $1,812.07
31-Mar-96 0.000000 7.68 9.507 0.000 235.946 $1,812.07
17-Apr-96 0.034600 D 7.64 9.553 1.069 237.015 $1,810.79
30-Apr-96 0.000000 7.62 9.589 0.000 237.015 $1,806.05
17-May-96 0.035706 D 7.66 9.636 1.105 238.120 $1,824.00
31-May-96 0.000000 D 7.61 9.674 0.000 238.120 $1,812.09
17-Jun-96 0.032401 D 7.57 9.721 1.019 239.139 $1,810.28
30-Jun-96 0.000000 7.64 9.756 0.000 239.139 $1,827.02
17-Jul-96 0.034048 D 7.62 9.803 1.069 240.208 $1,830.38
31-Jul-96 7.66 9.841 0.000 240.208 $1,839.99
17-Aug-96 0.036042 D 7.72 9.888 1.121 241.329 $1,863.06
31-Aug-96 7.62 9.926 0.000 241.329 $1,838.93
17-Sep-96 0.033860 D 7.66 9.973 1.067 242.396 $1,856.75
30-Sep-96 0.000000 7.68 10.008 0.000 242.396 $1,861.60
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.41%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,861.60
TOTAL RETURN FOR PERIOD 86.16%
<PAGE>
SELIGMAN MISSOURI MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $7.69
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ------------ ---------- --- ------ -------- --------- ---------- -----------
30-Sep-86 7.32 130.039 130.039 $951.89
17-Oct-86 0.041235 D 7.35 0.047 0.730 130.769 $961.15
30-Oct-86 0.000000 7.43 0.082 0.000 130.769 $971.61
17-Nov-86 0.037953 D 7.47 0.132 0.664 131.433 $981.80
30-Nov-86 0.000000 7.48 0.167 0.000 131.433 $983.12
17-Dec-86 0.039767 D 7.41 0.214 0.705 132.138 $979.14
31-Dec-86 7.42 0.252 0.000 132.138 $980.46
19-Jan-87 0.043767 D 7.56 0.304 0.765 132.903 $1,004.75
30-Jan-87 0.000000 7.60 0.334 0.000 132.903 $1,010.06
17-Feb-87 0.036313 D 7.59 0.384 0.636 133.539 $1,013.56
28-Feb-87 0.000000 7.59 0.414 0.000 133.539 $1,013.56
17-Mar-87 0.035171 D 7.58 0.460 0.620 134.159 $1,016.93
31-Mar-87 7.49 0.499 0.000 134.159 $1,004.85
20-Apr-87 0.044181 D 7.10 0.553 0.835 134.994 $958.46
30-Apr-87 0.000000 7.01 0.581 0.000 134.994 $946.31
18-May-87 0.036195 D 6.98 0.630 0.700 135.694 $947.14
30-May-87 0.000000 6.87 0.663 0.000 135.694 $932.22
17-Jun-87 0.039218 D 7.06 0.712 0.754 136.448 $963.32
30-Jun-87 7.05 0.748 0.000 136.448 $961.96
17-Jul-87 0.041353 D 7.10 0.795 0.795 137.243 $974.43
30-Jul-87 0.000000 7.08 0.830 0.000 137.243 $971.68
17-Aug-87 0.037383 D 7.09 0.879 0.724 137.967 $978.19
30-Aug-87 0.000000 7.05 0.915 0.000 137.967 $972.67
17-Sep-87 0.040611 D 6.72 0.964 0.834 138.801 $932.74
30-Sep-87 6.57 1.000 0.000 138.801 $911.92
19-Oct-87 0.042881 D 5.99 1.052 0.994 139.795 $837.37
19-Oct-87 0.046000 G 5.99 1.052 1.066 140.861 $843.76
30-Oct-87 0.000000 6.56 1.082 0.000 140.861 $924.05
17-Nov-87 0.038202 D 6.76 1.132 0.796 141.657 $957.60
30-Nov-87 0.000000 6.76 1.167 0.000 141.657 $957.60
17-Dec-87 0.038919 D 6.73 1.214 0.819 142.476 $958.86
31-Dec-87 6.86 1.252 0.000 142.476 $977.39
18-Jan-88 0.040542 D 6.94 1.301 0.832 143.308 $994.56
30-Jan-88 0.000000 7.16 1.334 0.000 143.308 $1,026.09
17-Feb-88 0.038853 D 7.16 1.384 0.778 144.086 $1,031.66
28-Feb-88 0.000000 7.20 1.414 0.000 144.086 $1,037.42
17-Mar-88 0.039655 D 7.01 1.463 0.815 144.901 $1,015.76
31-Mar-88 6.99 1.501 0.000 144.901 $1,012.86
18-Apr-88 0.041663 D 6.96 1.551 0.867 145.768 $1,014.55
30-Apr-88 0.000000 7.02 1.584 0.000 145.768 $1,023.29
17-May-88 0.037404 D 7.00 1.630 0.779 146.547 $1,025.83
30-May-88 0.000000 6.94 1.666 0.000 146.547 $1,017.04
19-Jun-88 0.042343 D 7.03 1.721 0.883 147.430 $1,036.43
30-Jun-88 7.05 1.751 0.000 147.430 $1,039.38
18-Jul-88 0.036833 D 7.03 1.800 0.772 148.202 $1,041.86
30-Jul-88 0.000000 7.04 1.833 0.000 148.202 $1,043.34
17-Aug-88 0.039140 D 7.01 1.882 0.827 149.029 $1,044.69
30-Aug-88 0.000000 7.02 1.918 0.000 149.029 $1,046.18
19-Sep-88 0.043363 D 7.12 1.973 0.908 149.937 $1,067.55
30-Sep-88 7.10 2.003 0.000 149.937 $1,064.55
17-Oct-88 0.036799 D 7.18 2.049 0.768 150.705 $1,082.06
30-Oct-88 0.000000 7.25 2.085 0.000 150.705 $1,092.61
17-Nov-88 0.040305 D 7.16 2.134 0.848 151.553 $1,085.12
30-Nov-88 0.000000 7.13 2.170 0.000 151.553 $1,080.57
19-Dec-88 0.041940 D 7.13 2.222 0.891 152.444 $1,086.93
31-Dec-88 7.21 2.255 0.000 152.444 $1,099.12
17-Jan-89 0.036860 D 7.28 2.301 0.772 153.216 $1,115.41
30-Jan-89 0.000000 7.33 2.337 0.000 153.216 $1,123.07
20-Feb-89 0.044209 D 7.23 2.395 0.937 154.153 $1,114.53
28-Feb-89 0.000000 7.17 2.416 0.000 154.153 $1,105.28
19-Mar-89 0.035194 D 7.12 2.468 0.762 154.915 $1,102.99
31-Mar-89 7.13 2.501 0.000 154.915 $1,104.54
17-Apr-89 0.036902 D 7.20 2.548 0.794 155.709 $1,121.10
30-Apr-89 0.000000 7.28 2.584 0.000 155.709 $1,133.56
17-May-89 0.038513 D 7.36 2.630 0.815 156.524 $1,152.02
30-May-89 0.000000 7.39 2.666 0.000 156.524 $1,156.71
19-Jun-89 0.042632 D 7.39 2.721 0.903 157.427 $1,163.39
30-Jun-89 7.42 2.751 0.000 157.427 $1,168.11
17-Jul-89 0.035931 D 7.44 2.797 0.760 158.187 $1,176.91
30-Jul-89 0.000000 7.46 2.833 0.000 158.187 $1,180.08
17-Aug-89 0.038933 D 7.37 2.882 0.836 159.023 $1,172.00
31-Aug-89 7.35 2.921 0.000 159.023 $1,168.82
18-Sep-89 0.039373 D 7.34 2.970 0.853 159.876 $1,173.49
30-Sep-89 7.28 3.003 0.000 159.876 $1,163.90
17-Oct-89 0.035159 D 7.35 3.049 0.765 160.641 $1,180.71
31-Oct-89 7.32 3.088 0.000 160.641 $1,175.89
17-Nov-89 0.041750 D 7.38 3.134 0.909 161.550 $1,192.24
30-Nov-89 7.42 3.170 0.000 161.550 $1,198.70
18-Dec-89 0.036159 D 7.42 3.219 0.787 162.337 $1,204.54
31-Dec-89 7.41 3.255 0.000 162.337 $1,202.92
17-Jan-90 0.036596 D 7.36 3.301 0.807 163.144 $1,200.74
31-Jan-90 7.28 3.340 0.000 163.144 $1,187.69
20-Feb-90 0.044918 D 7.29 3.395 1.005 164.149 $1,196.65
28-Feb-90 7.32 3.416 0.000 164.149 $1,201.57
19-Mar-90 0.033814 D 7.29 3.468 0.761 164.910 $1,202.19
31-Mar-90 7.29 3.501 0.000 164.910 $1,202.19
17-Apr-90 0.035764 D 7.29 3.548 0.809 165.719 $1,208.09
30-Apr-90 7.17 3.584 0.000 165.719 $1,188.21
17-May-90 0.036667 D 7.33 3.630 0.829 166.548 $1,220.80
31-May-90 7.34 3.668 0.000 166.548 $1,222.46
18-Jun-90 0.039025 D 7.36 3.718 0.883 167.431 $1,232.29
30-Jun-90 7.37 3.751 0.000 167.431 $1,233.97
17-Jul-90 0.036204 D 7.41 3.797 0.818 168.249 $1,246.73
31-Jul-90 7.45 3.836 0.000 168.249 $1,253.46
17-Aug-90 0.040890 D 7.33 3.882 0.939 169.188 $1,240.15
31-Aug-90 7.28 3.921 0.000 169.188 $1,231.69
17-Sep-90 0.035600 D 7.30 3.967 0.825 170.013 $1,241.09
30-Sep-90 7.22 4.003 0.000 170.013 $1,227.49
17-Oct-90 0.037296 D 7.26 4.049 0.873 170.886 $1,240.63
31-Oct-90 7.35 4.088 0.000 170.886 $1,256.01
16-Nov-90 0.040474 D 7.45 4.132 0.928 171.814 $1,280.01
30-Nov-90 7.46 4.170 0.000 171.814 $1,281.73
17-Dec-90 0.036296 D 7.46 4.216 0.836 172.650 $1,287.97
31-Dec-90 7.45 4.255 0.000 172.650 $1,286.24
17-Jan-91 0.039070 D 7.47 4.301 0.903 173.553 $1,296.44
31-Jan-91 7.51 4.340 0.000 173.553 $1,303.38
15-Feb-91 0.040526 D 7.59 4.381 0.927 174.480 $1,324.30
28-Feb-91 7.50 4.416 0.000 174.480 $1,308.60
15-Mar-91 0.034826 D 7.49 4.458 0.811 175.291 $1,312.93
31-Mar-91 7.48 4.501 0.000 175.291 $1,311.18
17-Apr-91 0.038910 D 7.55 4.548 0.903 176.194 $1,330.26
30-Apr-91 7.57 4.584 0.000 176.194 $1,333.79
17-May-91 0.039340 D 7.59 4.630 0.913 177.107 $1,344.24
31-May-91 7.60 4.668 0.000 177.107 $1,346.01
17-Jun-91 0.036079 D 7.51 4.715 0.851 177.958 $1,336.46
30-Jun-91 7.54 4.751 0.000 177.958 $1,341.80
17-Jul-91 0.037819 D 7.57 4.797 0.889 178.847 $1,353.87
31-Jul-91 7.61 4.836 0.000 178.847 $1,361.03
16-Aug-91 0.040018 D 7.64 4.879 0.937 179.784 $1,373.55
31-Aug-91 7.65 4.921 0.000 179.784 $1,375.35
17-Sep-91 0.036824 D 7.69 4.967 0.861 180.645 $1,389.16
30-Sep-91 7.72 5.003 0.000 180.645 $1,394.58
17-Oct-91 0.036811 D 7.75 5.049 0.858 181.503 $1,406.65
31-Oct-91 7.74 5.088 0.000 181.503 $1,404.83
15-Nov-91 0.038251 D 7.69 5.129 0.903 182.406 $1,402.70
15-Nov-91 0.065000 G 7.69 5.129 1.534 183.940 $1,414.50
30-Nov-91 7.61 5.170 0.000 183.940 $1,399.78
17-Dec-91 0.037063 D 7.66 5.216 0.890 184.830 $1,415.80
31-Dec-91 7.75 5.255 0.000 184.830 $1,432.43
17-Jan-92 0.040674 D 7.75 5.301 0.970 185.800 $1,439.95
31-Jan-92 7.70 5.340 0.000 185.800 $1,430.66
14-Feb-92 0.035542 D 7.66 5.378 0.862 186.662 $1,429.83
29-Feb-92 7.68 5.419 0.000 186.662 $1,433.56
17-Mar-92 0.035506 D 7.62 5.466 0.870 187.532 $1,428.99
31-Mar-92 7.64 5.504 0.000 187.532 $1,432.74
16-Apr-92 0.040657 D 7.70 5.548 0.990 188.522 $1,451.62
30-Apr-92 7.66 5.586 0.000 188.522 $1,444.08
15-May-92 0.034496 D 7.73 5.627 0.841 189.363 $1,463.78
31-May-92 7.73 5.671 0.000 189.363 $1,463.78
17-Jun-92 0.037764 D 7.76 5.718 0.922 190.285 $1,476.61
30-Jun-92 7.81 5.753 0.000 190.285 $1,486.13
17-Jul-92 0.037791 D 7.91 5.800 0.909 191.194 $1,512.34
31-Jul-92 7.99 5.838 0.000 191.194 $1,527.64
17-Aug-92 0.033206 D 7.89 5.885 0.805 191.999 $1,514.87
31-Aug-92 7.82 5.923 0.000 191.999 $1,501.43
17-Sep-92 0.035283 D 7.82 5.970 0.866 192.865 $1,508.20
30-Sep-92 7.80 6.005 0.000 192.865 $1,504.35
16-Oct-92 0.036134 D 7.75 6.049 0.899 193.764 $1,501.67
30-Oct-92 7.64 6.088 0.000 193.764 $1,480.36
17-Nov-92 0.034941 D 7.73 6.137 0.876 194.640 $1,504.57
17-Nov-92 0.057000 G 7.73 6.137 1.429 196.069 $1,515.61
30-Nov-92 7.75 6.173 0.000 196.069 $1,519.53
17-Dec-92 0.035395 D 7.76 6.219 0.894 196.963 $1,528.43
31-Dec-92 0.000000 7.80 6.258 0.000 196.963 $1,536.31
15-Jan-93 0.036053 D 7.80 6.299 0.910 197.873 $1,543.41
29-Jan-93 7.84 6.337 0.000 197.873 $1,551.32
17-Feb-93 0.035878 D 7.95 6.389 0.893 198.766 $1,580.19
26-Feb-93 8.08 6.414 0.000 198.766 $1,606.03
17-Mar-93 0.032362 D 7.99 6.466 0.805 199.571 $1,594.57
31-Mar-93 0.000000 7.96 6.504 0.000 199.571 $1,588.59
16-Apr-93 0.036583 D 8.05 6.548 0.907 200.478 $1,613.85
30-Apr-93 8.03 6.586 0.000 200.478 $1,609.84
17-May-93 0.033214 D 8.04 6.633 0.828 201.306 $1,618.50
31-May-93 8.03 6.671 0.000 201.306 $1,616.49
17-Jun-93 0.035716 D 8.07 6.718 0.891 202.197 $1,631.73
30-Jun-93 0.000000 8.13 6.753 0.000 202.197 $1,643.86
16-Jul-93 0.035346 D 8.16 6.797 0.876 203.073 $1,657.08
30-Jul-93 0.000000 8.10 6.836 0.000 203.073 $1,644.89
17-Aug-93 0.034897 D 8.19 6.885 0.865 203.938 $1,670.25
31-Aug-93 0.000000 8.23 6.923 0.000 203.938 $1,678.41
17-Sep-93 0.038153 D 8.30 6.970 0.937 204.875 $1,700.46
30-Sep-93 0.000000 8.31 7.005 0.000 204.875 $1,702.51
15-Oct-93 0.031803 D 8.37 7.047 0.778 205.653 $1,721.32
29-Oct-93 8.27 7.085 0.000 205.653 $1,700.75
17-Nov-93 0.109000 G 8.07 7.137 2.778 208.431 $1,682.04
17-Nov-93 0.035591 D 8.07 7.137 0.907 209.338 $1,689.36
30-Nov-93 0.000000 8.03 7.173 0.000 209.338 $1,680.98
17-Dec-93 0.035582 D 8.11 7.219 0.918 210.256 $1,705.18
31-Dec-93 0.000000 8.14 7.258 0.000 210.256 $1,711.48
17-Jan-94 0.032565 D 8.14 7.304 0.841 211.097 $1,718.33
31-Jan-94 0.000000 8.21 7.342 0.000 211.097 $1,733.11
17-Feb-94 0.034577 D 8.06 7.389 0.906 212.003 $1,708.74
28-Feb-94 0.000000 7.95 7.419 0.000 212.003 $1,685.42
17-Mar-94 0.031061 D 7.83 7.466 0.841 212.844 $1,666.57
31-Mar-94 0.000000 7.55 7.504 0.000 212.844 $1,606.97
15-Apr-94 0.034219 D 7.51 7.545 0.970 213.814 $1,605.74
29-Apr-94 0.000000 7.52 7.584 0.000 213.814 $1,607.88
17-May-94 0.033270 D 7.53 7.633 0.945 214.759 $1,617.14
31-May-94 0.000000 7.58 7.671 0.000 214.759 $1,627.87
17-Jun-94 0.036033 D 7.65 7.718 1.012 215.771 $1,650.65
30-Jun-94 0.000000 7.49 7.753 0.000 215.771 $1,616.12
15-Jul-94 0.030235 D 7.54 7.795 0.865 216.636 $1,633.44
29-Jul-94 0.000000 7.60 7.833 0.000 216.636 $1,646.43
17-Aug-94 0.033905 D 7.58 7.885 0.969 217.605 $1,649.45
31-Aug-94 0.000000 7.58 7.923 0.000 217.605 $1,649.45
16-Sep-94 0.034756 D 7.47 7.967 1.012 218.617 $1,633.07
30-Sep-94 0.000000 7.41 8.005 0.000 218.617 $1,619.95
17-Oct-94 0.031536 D 7.41 8.052 0.930 219.547 $1,626.84
31-Oct-94 0.000000 7.25 8.090 0.000 219.547 $1,591.72
17-Nov-94 0.070000 CG 6.86 8.137 2.240 221.787 $1,521.46
17-Nov-94 0.034278 D 6.86 8.137 1.097 222.884 $1,528.98
30-Nov-94 0.000000 6.99 8.173 0.000 222.884 $1,557.96
16-Dec-94 0.033564 D 7.13 8.216 1.049 223.933 $1,596.64
31-Dec-94 0.000000 7.16 8.258 0.000 223.933 $1,603.36
17-Jan-95 0.033068 D 7.28 8.304 1.017 224.950 $1,637.64
31-Jan-95 0.000000 7.36 8.342 0.000 224.950 $1,655.63
17-Feb-95 0.037416 D 7.48 8.389 1.125 226.075 $1,691.04
28-Feb-95 0.000000 7.55 8.419 0.000 226.075 $1,706.87
17-Mar-95 0.030320 D 7.58 8.466 0.904 226.979 $1,720.50
31-Mar-95 0.000000 7.58 8.504 0.000 226.979 $1,720.50
17-Apr-95 0.031997 D 7.64 8.551 0.951 227.930 $1,741.39
28-Apr-95 0.000000 7.54 8.581 0.000 227.930 $1,718.59
17-May-95 0.032712 D 7.71 8.633 0.967 228.897 $1,764.80
31-May-95 0.000000 7.75 8.671 0.000 228.897 $1,773.95
16-Jun-95 0.034076 D 7.66 8.715 1.018 229.915 $1,761.15
30-Jun-95 0.000000 7.62 8.753 0.000 229.915 $1,751.95
17-Jul-95 0.030898 D 7.69 8.800 0.924 230.839 $1,775.15
31-Jul-95 0.000000 7.62 8.838 0.000 230.839 $1,758.99
17-Aug-95 0.033413 D 7.55 8.885 1.022 231.861 $1,750.55
31-Aug-95 0.000000 7.69 8.923 0.000 231.861 $1,783.01
15-Sep-95 0.032660 D 7.75 8.964 0.977 232.838 $1,804.49
30-Sep-95 7.70 9.005 0.000 232.838 $1,792.85
17-Oct-95 0.031667 D 7.82 9.052 0.943 233.781 $1,828.17
31-Oct-95 7.79 9.090 0.000 233.781 $1,821.15
17-Nov-95 0.073000 G 7.75 9.137 2.202 235.983 $1,828.87
17-Nov-95 0.035332 D 7.75 9.137 1.066 237.049 $1,837.13
30-Nov-95 0.000000 7.82 9.173 0.000 237.049 $1,853.72
15-Dec-95 0.030062 D 7.81 9.214 0.912 237.961 $1,858.48
29-Dec-95 0.000000 7.88 9.252 0.000 237.961 $1,875.13
31-Dec-95 0.000000 7.88 9.258 0.000 237.961 $1,875.13
17-Jan-96 0.033098 D 7.85 9.304 1.003 238.964 $1,875.87
31-Jan-96 0.000000 7.87 9.342 0.000 238.964 $1,880.65
16-Feb-96 0.034947 D 7.87 9.386 1.061 240.025 $1,889.00
29-Feb-96 0.000000 7.80 9.422 0.000 240.025 $1,872.20
15-Mar-96 0.028425 D 7.56 9.463 0.902 240.927 $1,821.41
29-Mar-96 0.000000 7.63 9.501 0.000 240.927 $1,838.27
31-Mar-96 0.000000 7.63 9.507 0.000 240.927 $1,838.27
17-Apr-96 0.032622 D 7.58 9.553 1.037 241.964 $1,834.09
30-Apr-96 0.000000 7.57 9.589 0.000 241.964 $1,831.67
17-May-96 0.033984 D 7.62 9.636 1.079 243.043 $1,851.99
31-May-96 0.000000 7.56 9.674 0.000 243.043 $1,837.41
17-Jun-96 0.030764 D 7.53 9.721 0.993 244.036 $1,837.59
30-Jun-96 0.000000 7.62 9.756 0.000 244.036 $1,859.55
17-Jul-96 0.031323 D 7.60 9.803 1.006 245.042 $1,862.32
31-Jul-96 7.66 9.841 0.000 245.042 $1,877.02
17-Aug-96 0.033324 D 7.74 9.888 1.055 246.097 $1,904.79
31-Aug-96 7.64 9.926 0.000 246.097 $1,880.18
17-Sep-96 0.031462 D 7.68 9.973 1.008 247.105 $1,897.77
30-Sep-96 0.000000 7.71 10.008 0.000 247.105 $1,905.18
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.66%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,905.18
TOTAL RETURN FOR PERIOD 90.52%
<PAGE>
SELIGMAN NEW YORK MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $8.65
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ------ ------ --------- ---------- -----------
30-Sep-86 8.24 115.607 115.607 $952.60
17-Oct-86 0.050017 D 8.07 0.047 0.717 116.324 $938.73
17-Oct-86 0.246000 G 8.07 0.047 3.524 119.848 $967.17
30-Oct-86 0.000000 8.14 0.082 0.000 119.848 $975.56
17-Nov-86 0.043673 D 8.18 0.132 0.640 120.488 $985.59
30-Nov-86 0.000000 8.25 0.167 0.000 120.488 $994.03
17-Dec-86 0.044185 D 8.21 0.214 0.648 121.136 $994.53
31-Dec-86 8.24 0.252 0.000 121.136 $998.16
19-Jan-87 0.049319 D 8.31 0.304 0.719 121.855 $1,012.62
30-Jan-87 0.000000 8.38 0.334 0.000 121.855 $1,021.14
17-Feb-87 0.044684 D 8.35 0.384 0.652 122.507 $1,022.93
28-Feb-87 0.000000 8.39 0.414 0.000 122.507 $1,027.83
17-Mar-87 0.042727 D 8.42 0.460 0.622 123.129 $1,036.75
31-Mar-87 8.32 0.499 0.000 123.129 $1,024.43
20-Apr-87 0.052001 D 7.69 0.553 0.833 123.962 $953.27
30-Apr-87 0.000000 7.68 0.581 0.000 123.962 $952.03
18-May-87 0.042835 D 7.68 0.630 0.691 124.653 $957.34
30-May-87 0.000000 7.54 0.663 0.000 124.653 $939.88
17-Jun-87 0.045871 D 7.77 0.712 0.736 125.389 $974.27
30-Jun-87 7.77 0.748 0.000 125.389 $974.27
17-Jul-87 0.048094 D 7.81 0.795 0.772 126.161 $985.32
30-Jul-87 0.000000 7.77 0.830 0.000 126.161 $980.27
17-Aug-87 0.043659 D 7.77 0.879 0.709 126.870 $985.78
30-Aug-87 0.000000 7.76 0.915 0.000 126.870 $984.51
17-Sep-87 0.047079 D 7.39 0.964 0.808 127.678 $943.54
30-Sep-87 7.28 1.000 0.000 127.678 $929.50
19-Oct-87 0.185000 G 6.53 1.052 3.617 131.295 $857.36
19-Oct-87 0.048665 D 6.53 1.052 0.952 132.247 $863.57
30-Oct-87 0.000000 7.07 1.082 0.000 132.247 $934.99
17-Nov-87 0.042181 D 7.24 1.132 0.770 133.017 $963.04
30-Nov-87 0.000000 7.25 1.167 0.000 133.017 $964.37
17-Dec-87 0.042052 D 7.23 1.214 0.774 133.791 $967.31
31-Dec-87 7.36 1.252 0.000 133.791 $984.70
18-Jan-88 0.041663 D 7.47 1.301 0.746 134.537 $1,004.99
30-Jan-88 0.000000 7.66 1.334 0.000 134.537 $1,030.55
17-Feb-88 0.041110 D 7.66 1.384 0.722 135.259 $1,036.08
28-Feb-88 0.000000 7.68 1.414 0.000 135.259 $1,038.79
17-Mar-88 0.041786 D 7.50 1.463 0.754 136.013 $1,020.10
31-Mar-88 7.44 1.501 0.000 136.013 $1,011.94
18-Apr-88 0.045347 D 7.41 1.551 0.832 136.845 $1,014.02
30-Apr-88 0.000000 7.44 1.584 0.000 136.845 $1,018.13
17-May-88 0.040814 D 7.41 1.630 0.754 137.599 $1,019.61
30-May-88 0.000000 7.36 1.666 0.000 137.599 $1,012.73
19-Jun-88 0.046248 D 7.45 1.721 0.854 138.453 $1,031.47
30-Jun-88 7.46 1.751 0.000 138.453 $1,032.86
18-Jul-88 0.040687 D 7.44 1.800 0.757 139.210 $1,035.72
30-Jul-88 0.000000 7.46 1.833 0.000 139.210 $1,038.51
17-Aug-88 0.042791 D 7.41 1.882 0.804 140.014 $1,037.50
30-Aug-88 0.000000 7.45 1.918 0.000 140.014 $1,043.10
19-Sep-88 0.046809 D 7.57 1.973 0.866 140.880 $1,066.46
30-Sep-88 7.57 2.003 0.000 140.880 $1,066.46
17-Oct-88 0.039914 D 7.65 2.049 0.735 141.615 $1,083.35
30-Oct-88 0.000000 7.76 2.085 0.000 141.615 $1,098.93
17-Nov-88 0.027000 G 7.63 2.134 0.501 142.116 $1,084.35
17-Nov-88 0.043775 D 7.63 2.134 0.812 142.928 $1,090.54
30-Nov-88 0.000000 7.51 2.170 0.000 142.928 $1,073.39
19-Dec-88 0.045233 D 7.49 2.222 0.863 143.791 $1,076.99
31-Dec-88 7.63 2.255 0.000 143.791 $1,097.13
17-Jan-89 0.041299 D 7.69 2.301 0.772 144.563 $1,111.69
30-Jan-89 0.000000 7.74 2.337 0.000 144.563 $1,118.92
20-Feb-89 0.048510 D 7.61 2.395 0.922 145.485 $1,107.14
28-Feb-89 0.000000 7.59 2.416 0.000 145.485 $1,104.23
19-Mar-89 0.038772 D 7.53 2.468 0.749 146.234 $1,101.14
31-Mar-89 7.53 2.501 0.000 146.234 $1,101.14
17-Apr-89 0.041158 D 7.61 2.548 0.791 147.025 $1,118.86
30-Apr-89 0.000000 7.71 2.584 0.000 147.025 $1,133.56
17-May-89 0.043225 D 7.78 2.630 0.817 147.842 $1,150.21
30-May-89 0.000000 7.82 2.666 0.000 147.842 $1,156.12
19-Jun-89 0.047396 D 7.84 2.721 0.894 148.736 $1,166.09
30-Jun-89 7.88 2.751 0.000 148.736 $1,172.04
17-Jul-89 0.040238 D 7.89 2.797 0.759 149.495 $1,179.52
30-Jul-89 0.000000 7.92 2.833 0.000 149.495 $1,184.00
17-Aug-89 0.044493 D 7.79 2.882 0.854 150.349 $1,171.22
31-Aug-89 7.78 2.921 0.000 150.349 $1,169.72
18-Sep-89 0.046730 D 7.77 2.970 0.904 151.253 $1,175.24
30-Sep-89 7.71 3.003 0.000 151.253 $1,166.16
17-Oct-89 0.041202 D 7.80 3.049 0.799 152.052 $1,186.01
31-Oct-89 7.72 3.088 0.000 152.052 $1,173.84
17-Nov-89 0.045266 D 7.71 3.134 0.893 152.945 $1,179.21
17-Nov-89 0.048000 G 7.71 3.134 0.947 153.892 $1,186.51
30-Nov-89 7.74 3.170 0.000 153.892 $1,191.12
18-Dec-89 0.038734 D 7.75 3.219 0.769 154.661 $1,198.62
31-Dec-89 7.76 3.255 0.000 154.661 $1,200.17
17-Jan-90 0.039931 D 7.69 3.301 0.803 155.464 $1,195.52
31-Jan-90 7.62 3.340 0.000 155.464 $1,184.64
20-Feb-90 0.049491 D 7.61 3.395 1.011 156.475 $1,190.77
28-Feb-90 7.63 3.416 0.000 156.475 $1,193.90
19-Mar-90 0.038547 D 7.58 3.468 0.796 157.271 $1,192.11
31-Mar-90 7.55 3.501 0.000 157.271 $1,187.40
17-Apr-90 0.040618 D 7.54 3.548 0.847 158.118 $1,192.21
30-Apr-90 7.40 3.584 0.000 158.118 $1,170.07
17-May-90 0.041720 D 7.57 3.630 0.871 158.989 $1,203.55
31-May-90 7.59 3.668 0.000 158.989 $1,206.73
18-Jun-90 0.043933 D 7.61 3.718 0.918 159.907 $1,216.89
30-Jun-90 7.64 3.751 0.000 159.907 $1,221.69
17-Jul-90 0.040770 D 7.68 3.797 0.849 160.756 $1,234.61
31-Jul-90 7.76 3.836 0.000 160.756 $1,247.47
17-Aug-90 0.046637 D 7.60 3.882 0.986 161.742 $1,229.24
31-Aug-90 7.51 3.921 0.000 161.742 $1,214.68
17-Sep-90 0.040675 D 7.52 3.967 0.875 162.617 $1,222.88
30-Sep-90 7.40 4.003 0.000 162.617 $1,203.37
17-Oct-90 0.041838 D 7.43 4.049 0.916 163.533 $1,215.05
31-Oct-90 7.45 4.088 0.000 163.533 $1,218.32
16-Nov-90 0.044657 D 7.58 4.132 0.963 164.496 $1,246.88
30-Nov-90 7.58 4.170 0.000 164.496 $1,246.88
17-Dec-90 0.040686 D 7.58 4.216 0.883 165.379 $1,253.57
31-Dec-90 7.56 4.255 0.000 165.379 $1,250.27
17-Jan-91 0.043690 D 7.59 4.301 0.952 166.331 $1,262.45
31-Jan-91 7.63 4.340 0.000 166.331 $1,269.11
15-Feb-91 0.044217 D 7.72 4.381 0.953 167.284 $1,291.43
28-Feb-91 7.61 4.416 0.000 167.284 $1,273.03
15-Mar-91 0.037530 D 7.62 4.458 0.824 168.108 $1,280.98
31-Mar-91 7.61 4.501 0.000 168.108 $1,279.30
17-Apr-91 0.042791 D 7.72 4.548 0.932 169.040 $1,304.99
30-Apr-91 7.71 4.584 0.000 169.040 $1,303.30
17-May-91 0.043819 D 7.72 4.630 0.959 169.999 $1,312.39
31-May-91 7.73 4.668 0.000 169.999 $1,314.09
17-Jun-91 0.039863 D 7.63 4.715 0.888 170.887 $1,303.87
30-Jun-91 7.68 4.751 0.000 170.887 $1,312.41
17-Jul-91 0.040739 D 7.74 4.797 0.899 171.786 $1,329.62
31-Jul-91 7.78 4.836 0.000 171.786 $1,336.50
16-Aug-91 0.043402 D 7.84 4.879 0.951 172.737 $1,354.26
31-Aug-91 7.85 4.921 0.000 172.737 $1,355.99
17-Sep-91 0.040439 D 7.89 4.967 0.885 173.622 $1,369.88
30-Sep-91 7.94 5.003 0.000 173.622 $1,378.56
17-Oct-91 0.040362 D 7.94 5.049 0.883 174.505 $1,385.57
31-Oct-91 7.95 5.088 0.000 174.505 $1,387.31
15-Nov-91 0.041381 D 7.88 5.129 0.916 175.421 $1,382.32
15-Nov-91 0.070000 G 7.88 5.129 1.550 176.971 $1,394.53
30-Nov-91 7.83 5.170 0.000 176.971 $1,385.68
17-Dec-91 0.039672 D 7.84 5.216 0.896 177.867 $1,394.48
31-Dec-91 7.98 5.255 0.000 177.867 $1,419.38
17-Jan-92 0.043858 D 7.93 5.301 0.984 178.851 $1,418.29
31-Jan-92 7.88 5.340 0.000 178.851 $1,409.35
16-Feb-92 0.038439 D 7.84 5.384 0.877 179.728 $1,409.07
29-Feb-92 7.88 5.419 0.000 179.728 $1,416.26
17-Mar-92 0.038371 D 7.82 5.466 0.882 180.610 $1,412.37
31-Mar-92 7.87 5.504 0.000 180.610 $1,421.40
16-Apr-92 0.043736 D 7.94 5.548 0.995 181.605 $1,441.94
30-Apr-92 7.91 5.586 0.000 181.605 $1,436.50
15-May-92 0.037188 D 7.98 5.627 0.846 182.451 $1,455.96
31-May-92 7.99 5.671 0.000 182.451 $1,457.78
17-Jun-92 0.040603 D 8.03 5.718 0.923 183.374 $1,472.49
30-Jun-92 8.11 5.753 0.000 183.374 $1,487.16
17-Jul-92 0.042225 D 8.23 5.800 0.941 184.315 $1,516.91
31-Jul-92 8.38 5.838 0.000 184.315 $1,544.56
17-Aug-92 0.039457 D 8.25 5.885 0.882 185.197 $1,527.88
31-Aug-92 8.16 5.923 0.000 185.197 $1,511.21
17-Sep-92 0.043472 D 8.16 5.970 0.987 186.184 $1,519.26
30-Sep-92 8.13 6.005 0.000 186.184 $1,513.68
16-Oct-92 0.038820 D 8.07 6.049 0.896 187.080 $1,509.74
30-Oct-92 7.95 6.088 0.000 187.080 $1,487.29
17-Nov-92 0.038012 D 7.99 6.137 0.890 187.970 $1,501.88
17-Nov-92 0.117000 G 7.99 6.137 2.739 190.709 $1,523.76
30-Nov-92 8.02 6.173 0.000 190.709 $1,529.49
17-Dec-92 0.035213 D 8.05 6.219 0.834 191.543 $1,541.92
31-Dec-92 0.000000 8.10 6.258 0.000 191.543 $1,551.50
15-Jan-93 0.038034 D 8.10 6.299 0.899 192.442 $1,558.78
29-Jan-93 8.15 6.337 0.000 192.442 $1,568.40
17-Feb-93 0.039700 D 8.29 6.389 0.922 193.364 $1,602.99
26-Feb-93 8.47 6.414 0.000 193.364 $1,637.79
17-Mar-93 0.035402 D 8.38 6.466 0.817 194.181 $1,627.24
31-Mar-93 0.000000 8.36 6.504 0.000 194.181 $1,623.35
16-Apr-93 0.038994 D 8.47 6.548 0.894 195.075 $1,652.29
30-Apr-93 8.44 6.586 0.000 195.075 $1,646.43
17-May-93 0.036167 D 8.46 6.633 0.834 195.909 $1,657.39
31-May-93 8.46 6.671 0.000 195.909 $1,657.39
17-Jun-93 0.038170 D 8.50 6.718 0.880 196.789 $1,672.71
30-Jun-93 0.000000 8.56 6.753 0.000 196.789 $1,684.51
16-Jul-93 0.037180 D 8.59 6.797 0.852 197.641 $1,697.74
30-Jul-93 0.000000 8.51 6.836 0.000 197.641 $1,681.92
17-Aug-93 0.036725 D 8.63 6.885 0.841 198.482 $1,712.90
31-Aug-93 0.000000 8.68 6.923 0.000 198.482 $1,722.82
17-Sep-93 0.039693 D 8.76 6.970 0.899 199.381 $1,746.58
30-Sep-93 0.000000 8.75 7.005 0.000 199.381 $1,744.58
15-Oct-93 0.033277 D 8.82 7.047 0.752 200.133 $1,765.17
29-Oct-93 8.72 7.085 0.000 200.133 $1,745.16
17-Nov-93 0.201000 G 8.39 7.137 4.795 204.928 $1,719.35
17-Nov-93 0.037588 D 8.39 7.137 0.897 205.825 $1,726.87
30-Nov-93 0.000000 8.36 7.173 0.000 205.825 $1,720.70
17-Dec-93 0.037552 D 8.47 7.219 0.913 206.738 $1,751.07
31-Dec-93 0.000000 8.50 7.258 0.000 206.738 $1,757.27
17-Jan-94 0.033966 D 8.49 7.304 0.827 207.565 $1,762.23
31-Jan-94 0.000000 8.56 7.342 0.000 207.565 $1,776.76
17-Feb-94 0.036560 D 8.43 7.389 0.900 208.465 $1,757.36
28-Feb-94 0.000000 8.30 7.419 0.000 208.465 $1,730.26
17-Mar-94 0.033384 D 8.15 7.466 0.854 209.319 $1,705.95
31-Mar-94 0.000000 7.84 7.504 0.000 209.319 $1,641.06
15-Apr-94 0.038201 D 7.79 7.545 1.026 210.345 $1,638.59
29-Apr-94 0.000000 7.82 7.584 0.000 210.345 $1,644.90
17-May-94 0.036008 D 7.83 7.633 0.967 211.312 $1,654.57
31-May-94 7.87 7.671 0.000 211.312 $1,663.03
17-Jun-94 0.039265 D 7.91 7.718 1.049 212.361 $1,679.78
30-Jun-94 0.000000 7.78 7.753 0.000 212.361 $1,652.17
15-Jul-94 0.032800 D 7.84 7.795 0.888 213.249 $1,671.87
29-Jul-94 0.000000 7.91 7.833 0.000 213.249 $1,686.80
17-Aug-94 0.036403 D 7.90 7.885 0.983 214.232 $1,692.43
31-Aug-94 0.000000 7.89 7.923 0.000 214.232 $1,690.29
16-Sep-94 0.036496 D 7.75 7.967 1.009 215.241 $1,668.12
30-Sep-94 0.000000 7.67 8.005 0.000 215.241 $1,650.90
17-Oct-94 0.033544 D 7.66 8.052 0.943 216.184 $1,655.97
31-Oct-94 0.000000 7.45 8.090 0.000 216.184 $1,610.57
17-Nov-94 0.170000 CG 6.88 8.137 5.342 221.526 $1,524.10
17-Nov-94 0.036382 D 6.88 8.137 1.143 222.669 $1,531.96
30-Nov-94 0.000000 7.03 8.173 0.000 222.669 $1,565.36
16-Dec-94 0.035745 D 7.18 8.216 1.109 223.778 $1,606.73
31-Dec-94 0.000000 7.23 8.258 0.000 223.778 $1,617.91
17-Jan-95 0.034658 D 7.36 8.304 1.054 224.832 $1,654.76
31-Jan-95 0.000000 7.44 8.342 0.000 224.832 $1,672.75
17-Feb-95 0.039089 D 7.60 8.389 1.156 225.988 $1,717.51
28-Feb-95 0.000000 7.69 8.419 0.000 225.988 $1,737.85
17-Mar-95 0.031187 D 7.72 8.466 0.913 226.901 $1,751.68
31-Mar-95 0.000000 7.71 8.504 0.000 226.901 $1,749.41
17-Apr-95 0.033787 D 7.81 8.551 0.982 227.883 $1,779.77
28-Apr-95 0.000000 7.69 8.581 0.000 227.883 $1,752.42
17-May-95 0.034992 D 7.91 8.633 1.008 228.891 $1,810.53
31-May-95 0.000000 7.96 8.671 0.000 228.891 $1,821.97
16-Jun-95 0.036839 D 7.83 8.715 1.077 229.968 $1,800.65
30-Jun-95 0.000000 7.77 8.753 0.000 229.968 $1,786.85
17-Jul-95 0.032735 D 7.87 8.800 0.957 230.925 $1,817.38
31-Jul-95 0.000000 7.79 8.838 0.000 230.925 $1,798.91
17-Aug-95 0.035330 D 7.70 8.885 1.060 231.985 $1,786.28
31-Aug-95 0.000000 7.86 8.923 0.000 231.985 $1,823.40
15-Sep-95 0.034908 D 7.93 8.964 1.021 233.006 $1,847.74
30-Sep-95 7.86 9.005 0.000 233.006 $1,831.43
17-Oct-95 0.033691 D 8.00 9.052 0.981 233.987 $1,871.90
31-Oct-95 0.000000 7.98 9.090 0.000 233.987 $1,867.22
17-Nov-95 0.037314 D 8.04 9.137 1.086 235.073 $1,889.99
30-Nov-95 0.000000 8.12 9.173 0.000 235.073 $1,908.79
15-Dec-95 0.031171 D 8.10 9.214 0.905 235.978 $1,911.42
29-Dec-95 0.000000 8.18 9.252 0.000 235.978 $1,930.30
31-Dec-95 0.000000 8.18 9.258 0.000 235.978 $1,930.30
17-Jan-96 0.034694 D 8.16 9.304 1.003 236.981 $1,933.76
31-Jan-96 0.000000 8.18 9.342 0.000 236.981 $1,938.50
16-Feb-96 0.037385 D 8.20 9.386 1.080 238.061 $1,952.10
29-Feb-96 0.000000 8.11 9.422 0.000 238.061 $1,930.67
15-Mar-96 0.030861 D 7.83 9.463 0.938 238.999 $1,871.36
29-Mar-96 0.000000 7.92 9.501 0.000 238.999 $1,892.87
31-Mar-96 0.000000 7.92 9.507 0.000 238.999 $1,892.87
17-Apr-96 0.035366 D 7.86 9.553 1.075 240.074 $1,886.98
30-Apr-96 0.000000 7.84 9.589 0.000 240.074 $1,882.18
17-May-96 0.036351 D 7.87 9.636 1.109 241.183 $1,898.11
31-May-96 0.000000 D 7.80 9.674 0.000 241.183 $1,881.23
17-Jun-96 0.033827 D 7.77 9.721 1.050 242.233 $1,882.15
30-Jun-96 0.000000 7.88 9.756 0.000 242.233 $1,908.80
17-Jul-96 0.034855 D 7.86 9.803 1.074 243.307 $1,912.39
31-Jul-96 7.91 9.841 0.000 243.307 $1,924.56
17-Aug-96 0.037002 D 8.01 9.888 1.124 244.431 $1,957.89
31-Aug-96 7.88 9.926 0.000 244.431 $1,926.12
17-Sep-96 0.034532 D 7.94 9.973 1.063 245.494 $1,949.22
30-Sep-96 0.000000 7.98 10.008 0.000 245.494 $1,959.04
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.96%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,959.04
TOTAL RETURN FOR PERIOD 95.90%
<PAGE>
SELIGMAN OHIO MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $8.49
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
30-Sep-86 8.09 117.786 117.786 $952.89
17-Oct-86 0.050685 D 8.03 0.047 0.743 118.529 $951.79
17-Oct-86 0.117000 G 8.03 0.047 1.716 120.245 $965.57
30-Oct-86 0.000000 8.12 0.082 0.000 120.245 $976.39
17-Nov-86 0.044455 D 8.18 0.132 0.653 120.898 $988.95
30-Nov-86 0.000000 8.24 0.167 0.000 120.898 $996.20
17-Dec-86 0.046408 D 8.15 0.214 0.688 121.586 $990.93
31-Dec-86 8.15 0.252 0.000 121.586 $990.93
19-Jan-87 0.052065 D 8.30 0.304 0.763 122.349 $1,015.50
30-Jan-87 0.000000 8.37 0.334 0.000 122.349 $1,024.06
17-Feb-87 0.045541 D 8.33 0.384 0.669 123.018 $1,024.74
28-Feb-87 0.000000 8.36 0.414 0.000 123.018 $1,028.43
17-Mar-87 0.043462 D 8.39 0.460 0.637 123.655 $1,037.47
31-Mar-87 8.25 0.499 0.000 123.655 $1,020.15
20-Apr-87 0.053581 D 7.71 0.553 0.859 124.514 $960.00
30-Apr-87 0.000000 7.69 0.581 0.000 124.514 $957.51
18-May-87 0.042557 D 7.65 0.630 0.693 125.207 $957.83
30-May-87 0.000000 7.60 0.663 0.000 125.207 $951.57
17-Jun-87 0.045755 D 7.80 0.712 0.734 125.941 $982.34
30-Jun-87 7.80 0.748 0.000 125.941 $982.34
17-Jul-87 0.048880 D 7.87 0.795 0.782 126.723 $997.31
30-Jul-87 0.000000 7.86 0.830 0.000 126.723 $996.04
17-Aug-87 0.044627 D 7.84 0.879 0.721 127.444 $999.16
30-Aug-87 0.000000 7.81 0.915 0.000 127.444 $995.34
17-Sep-87 0.047827 D 7.47 0.964 0.816 128.260 $958.10
30-Sep-87 7.38 1.000 0.000 128.260 $946.56
19-Oct-87 0.201000 G 6.61 1.052 3.900 132.160 $873.58
19-Oct-87 0.049244 D 6.61 1.052 0.956 133.116 $879.90
30-Oct-87 0.000000 7.11 1.082 0.000 133.116 $946.45
17-Nov-87 0.042996 D 7.32 1.132 0.782 133.898 $980.13
30-Nov-87 0.000000 7.33 1.167 0.000 133.898 $981.47
17-Dec-87 0.043982 D 7.32 1.214 0.805 134.703 $986.03
31-Dec-87 7.41 1.252 0.000 134.703 $998.15
18-Jan-88 0.046739 D 7.52 1.301 0.837 135.540 $1,019.26
30-Jan-88 0.000000 7.72 1.334 0.000 135.540 $1,046.37
17-Feb-88 0.044292 D 7.70 1.384 0.780 136.320 $1,049.66
28-Feb-88 0.000000 7.75 1.414 0.000 136.320 $1,056.48
17-Mar-88 0.042925 D 7.59 1.463 0.771 137.091 $1,040.52
31-Mar-88 7.56 1.501 0.000 137.091 $1,036.41
18-Apr-88 0.047176 D 7.56 1.551 0.855 137.946 $1,042.87
30-Apr-88 0.000000 7.64 1.584 0.000 137.946 $1,053.91
17-May-88 0.042702 D 7.63 1.630 0.772 138.718 $1,058.42
30-May-88 0.000000 7.57 1.666 0.000 138.718 $1,050.10
19-Jun-88 0.048903 D 7.63 1.721 0.889 139.607 $1,065.20
30-Jun-88 7.66 1.751 0.000 139.607 $1,069.39
18-Jul-88 0.042747 D 7.62 1.800 0.783 140.390 $1,069.77
30-Jul-88 0.000000 7.64 1.833 0.000 140.390 $1,072.58
17-Aug-88 0.044869 D 7.59 1.882 0.830 141.220 $1,071.86
30-Aug-88 0.000000 7.61 1.918 0.000 141.220 $1,074.68
19-Sep-88 0.049349 D 7.70 1.973 0.905 142.125 $1,094.36
30-Sep-88 7.71 2.003 0.000 142.125 $1,095.78
17-Oct-88 0.041407 D 7.76 2.049 0.758 142.883 $1,108.77
30-Oct-88 0.000000 7.82 2.085 0.000 142.883 $1,117.35
17-Nov-88 0.045848 D 7.71 2.134 0.850 143.733 $1,108.18
17-Nov-88 0.015000 G 7.71 2.134 0.278 144.011 $1,110.32
30-Nov-88 0.000000 7.68 2.170 0.000 144.011 $1,106.00
19-Dec-88 0.047428 D 7.68 2.222 0.889 144.900 $1,112.83
31-Dec-88 7.74 2.255 0.000 144.900 $1,121.53
17-Jan-89 0.043388 D 7.80 2.301 0.806 145.706 $1,136.51
30-Jan-89 0.000000 7.87 2.337 0.000 145.706 $1,146.71
20-Feb-89 0.050861 D 7.75 2.395 0.956 146.662 $1,136.63
28-Feb-89 0.000000 7.74 2.416 0.000 146.662 $1,135.16
19-Mar-89 0.039786 D 7.70 2.468 0.758 147.420 $1,135.13
31-Mar-89 7.70 2.501 0.000 147.420 $1,135.13
17-Apr-89 0.042155 D 7.75 2.548 0.802 148.222 $1,148.72
30-Apr-89 0.000000 7.82 2.584 0.000 148.222 $1,159.10
17-May-89 0.044641 D 7.86 2.630 0.842 149.064 $1,171.64
30-May-89 0.000000 7.89 2.666 0.000 149.064 $1,176.11
19-Jun-89 0.048963 D 7.91 2.721 0.923 149.987 $1,186.40
30-Jun-89 7.96 2.751 0.000 149.987 $1,193.90
17-Jul-89 0.041171 D 7.97 2.797 0.775 150.762 $1,201.57
30-Jul-89 0.000000 8.01 2.833 0.000 150.762 $1,207.60
17-Aug-89 0.045672 D 7.91 2.882 0.870 151.632 $1,199.41
31-Aug-89 7.87 2.921 0.000 151.632 $1,193.34
18-Sep-89 0.048054 D 7.86 2.970 0.927 152.559 $1,199.11
30-Sep-89 7.80 3.003 0.000 152.559 $1,189.96
17-Oct-89 0.042230 D 7.87 3.049 0.819 153.378 $1,207.08
31-Oct-89 7.84 3.088 0.000 153.378 $1,202.48
17-Nov-89 0.046981 D 7.80 3.134 0.924 154.302 $1,203.56
17-Nov-89 0.100000 G 7.80 3.134 1.966 156.268 $1,218.89
30-Nov-89 7.83 3.170 0.000 156.268 $1,223.58
18-Dec-89 0.040052 D 7.85 3.219 0.797 157.065 $1,232.96
31-Dec-89 7.85 3.255 0.000 157.065 $1,232.96
17-Jan-90 0.041066 D 7.80 3.301 0.827 157.892 $1,231.56
31-Jan-90 7.73 3.340 0.000 157.892 $1,220.51
20-Feb-90 0.050477 D 7.75 3.395 1.028 158.920 $1,231.63
28-Feb-90 7.78 3.416 0.000 158.920 $1,236.40
19-Mar-90 0.039380 D 7.74 3.468 0.809 159.729 $1,236.30
31-Mar-90 7.74 3.501 0.000 159.729 $1,236.30
17-Apr-90 0.041332 D 7.72 3.548 0.855 160.584 $1,239.71
30-Apr-90 7.58 3.584 0.000 160.584 $1,217.23
17-May-90 0.042131 D 7.73 3.630 0.875 161.459 $1,248.08
31-May-90 7.75 3.668 0.000 161.459 $1,251.31
18-Jun-90 0.044365 D 7.76 3.718 0.923 162.382 $1,260.08
30-Jun-90 7.77 3.751 0.000 162.382 $1,261.71
17-Jul-90 0.040696 D 7.81 3.797 0.846 163.228 $1,274.81
31-Jul-90 7.85 3.836 0.000 163.228 $1,281.34
17-Aug-90 0.046019 D 7.73 3.882 0.972 164.200 $1,269.27
31-Aug-90 7.67 3.921 0.000 164.200 $1,259.41
17-Sep-90 0.040557 D 7.69 3.967 0.866 165.066 $1,269.36
21-Sep-90 0.000000 7.65 3.978 0.000 165.066 $1,262.75
30-Sep-90 7.62 4.003 0.000 165.066 $1,257.80
17-Oct-90 0.042462 D 7.65 4.049 0.916 165.982 $1,269.76
31-Oct-90 7.73 4.088 0.000 165.982 $1,283.04
16-Nov-90 0.012000 G 7.82 4.132 0.255 166.237 $1,299.97
16-Nov-90 0.044712 D 7.82 4.132 0.949 167.186 $1,307.39
30-Nov-90 7.84 4.170 0.000 167.186 $1,310.74
17-Dec-90 0.040330 D 7.83 4.216 0.861 168.047 $1,315.81
31-Dec-90 7.82 4.255 0.000 168.047 $1,314.13
17-Jan-91 0.043549 D 7.84 4.301 0.933 168.980 $1,324.80
31-Jan-91 7.87 4.340 0.000 168.980 $1,329.87
15-Feb-91 0.044924 D 7.96 4.381 0.954 169.934 $1,352.67
28-Feb-91 7.87 4.416 0.000 169.934 $1,337.38
15-Mar-91 0.037620 D 7.86 4.458 0.813 170.747 $1,342.07
31-Mar-91 7.84 4.501 0.000 170.747 $1,338.66
17-Apr-91 0.042978 D 7.92 4.548 0.927 171.674 $1,359.66
30-Apr-91 7.92 4.584 0.000 171.674 $1,359.66
17-May-91 0.044395 D 7.93 4.630 0.961 172.635 $1,369.00
31-May-91 7.95 4.668 0.000 172.635 $1,372.45
17-Jun-91 0.039847 D 7.85 4.715 0.876 173.511 $1,362.06
30-Jun-91 7.88 4.751 0.000 173.511 $1,367.27
17-Jul-91 0.041547 D 7.93 4.797 0.909 174.420 $1,383.15
31-Jul-91 7.95 4.836 0.000 174.420 $1,386.64
16-Aug-91 0.044151 D 7.99 4.879 0.964 175.384 $1,401.32
31-Aug-91 8.00 4.921 0.000 175.384 $1,403.07
17-Sep-91 0.040787 D 8.03 4.967 0.891 176.275 $1,415.49
30-Sep-91 8.06 5.003 0.000 176.275 $1,420.78
17-Oct-91 0.040713 D 8.08 5.049 0.888 177.163 $1,431.48
31-Oct-91 8.08 5.088 0.000 177.163 $1,431.48
15-Nov-91 0.041820 D 8.05 5.129 0.920 178.083 $1,433.57
15-Nov-91 0.043000 G 8.05 5.129 0.946 179.029 $1,441.18
30-Nov-91 8.00 5.170 0.000 179.029 $1,432.23
17-Dec-91 0.040268 D 8.03 5.216 0.898 179.927 $1,444.81
31-Dec-91 0.000000 8.13 5.255 0.000 179.927 $1,462.81
17-Jan-92 0.044775 D 8.14 5.301 0.990 180.917 $1,472.66
31-Jan-92 8.09 5.340 0.000 180.917 $1,463.62
16-Feb-92 0.039129 D 8.04 5.384 0.880 181.797 $1,461.65
29-Feb-92 8.07 5.419 0.000 181.797 $1,467.10
17-Mar-92 0.038769 D 8.01 5.466 0.880 182.677 $1,463.24
31-Mar-92 8.03 5.504 0.000 182.677 $1,466.90
16-Apr-92 0.044390 D 8.08 5.548 1.004 183.681 $1,484.14
30-Apr-92 8.05 5.586 0.000 183.681 $1,478.63
15-May-92 0.037632 D 8.11 5.627 0.852 184.533 $1,496.56
31-May-92 8.12 5.671 0.000 184.533 $1,498.41
17-Jun-92 0.041040 D 8.17 5.718 0.927 185.460 $1,515.21
30-Jun-92 8.22 5.753 0.000 185.460 $1,524.48
17-Jul-92 0.042525 D 8.34 5.800 0.946 186.406 $1,554.63
31-Jul-92 8.42 5.838 0.000 186.406 $1,569.54
16-Aug-92 0.038418 D 8.34 5.882 0.859 187.265 $1,561.79
31-Aug-92 8.28 5.923 0.000 187.265 $1,550.55
17-Sep-92 0.041091 D 8.28 5.970 0.929 188.194 $1,558.25
21-Sep-92 0.000000 8.27 5.981 0.000 188.194 $1,556.36
30-Sep-92 8.28 6.005 0.000 188.194 $1,558.25
16-Oct-92 0.040858 D 8.23 6.049 0.934 189.128 $1,556.52
30-Oct-92 8.10 6.088 0.000 189.128 $1,531.94
17-Nov-92 0.039134 D 8.16 6.137 0.907 190.035 $1,550.69
17-Nov-92 0.068000 G 8.16 6.137 1.576 191.611 $1,563.55
30-Nov-92 8.19 6.173 0.000 191.611 $1,569.29
17-Dec-92 0.037828 D 8.21 6.219 0.883 192.494 $1,580.38
31-Dec-92 0.000000 8.24 6.258 0.000 192.494 $1,586.15
15-Jan-93 0.039330 D 8.25 6.299 0.918 193.412 $1,595.65
29-Jan-93 8.29 6.337 0.000 193.412 $1,603.39
17-Feb-93 0.039038 D 8.38 6.389 0.901 194.313 $1,628.34
26-Feb-93 8.53 6.414 0.000 194.313 $1,657.49
17-Mar-93 0.034751 D 8.43 6.466 0.801 195.114 $1,644.81
31-Mar-93 0.000000 8.42 6.504 0.000 195.114 $1,642.86
16-Apr-93 0.040241 D 8.49 6.548 0.925 196.039 $1,664.37
30-Apr-93 8.49 6.586 0.000 196.039 $1,664.37
17-May-93 0.036662 D 8.50 6.633 0.846 196.885 $1,673.52
31-May-93 8.50 6.671 0.000 196.885 $1,673.52
17-Jun-93 0.039460 D 8.54 6.718 0.910 197.795 $1,689.17
30-Jun-93 0.000000 8.60 6.753 0.000 197.795 $1,701.04
16-Jul-93 0.038164 D 8.62 6.797 0.876 198.671 $1,712.54
30-Jul-93 0.000000 8.55 6.836 0.000 198.671 $1,698.64
17-Aug-93 0.037216 D 8.64 6.885 0.856 199.527 $1,723.91
31-Aug-93 0.000000 8.70 6.923 0.000 199.527 $1,735.88
17-Sep-93 0.040368 D 8.76 6.970 0.919 200.446 $1,755.91
30-Sep-93 0.000000 8.77 7.005 0.000 200.446 $1,757.91
15-Oct-93 0.034088 D 8.84 7.047 0.773 201.219 $1,778.78
29-Oct-93 8.73 7.085 0.000 201.219 $1,756.64
17-Nov-93 0.037664 D 8.46 7.137 0.896 202.115 $1,709.89
17-Nov-93 0.171000 G 8.46 7.137 4.067 206.182 $1,744.30
30-Nov-93 0.000000 8.43 7.173 0.000 206.182 $1,738.11
17-Dec-93 0.038226 D 8.51 7.219 0.926 207.108 $1,762.49
31-Dec-93 0.000000 8.55 7.258 0.000 207.108 $1,770.77
17-Jan-94 0.034967 D 8.56 7.304 0.846 207.954 $1,780.09
31-Jan-94 0.000000 8.62 7.342 0.000 207.954 $1,792.56
17-Feb-94 0.037493 D 8.49 7.389 0.918 208.872 $1,773.32
28-Feb-94 0.000000 8.37 7.419 0.000 208.872 $1,748.26
17-Mar-94 0.034102 D 8.25 7.466 0.863 209.735 $1,730.31
31-Mar-94 0.000000 8.03 7.504 0.000 209.735 $1,684.17
15-Apr-94 0.037837 D 8.02 7.545 0.989 210.724 $1,690.01
29-Apr-94 0.000000 8.02 7.584 0.000 210.724 $1,690.01
17-May-94 0.036684 D 8.04 7.633 0.961 211.685 $1,701.95
31-May-94 8.08 7.671 0.000 211.685 $1,710.41
17-Jun-94 0.039825 D 8.14 7.718 1.036 212.721 $1,731.55
30-Jun-94 0.000000 8.00 7.753 0.000 212.721 $1,701.77
15-Jul-94 0.033946 D 8.04 7.795 0.898 213.619 $1,717.50
29-Jul-94 0.000000 8.10 7.833 0.000 213.619 $1,730.31
17-Aug-94 0.038069 D 8.07 7.885 1.008 214.627 $1,732.04
31-Aug-94 0.000000 8.08 7.923 0.000 214.627 $1,734.19
16-Sep-94 0.038349 D 7.96 7.967 1.034 215.661 $1,716.66
21-Sep-94 0.000000 7.92 7.981 0.000 215.661 $1,708.04
30-Sep-94 0.000000 7.90 8.005 0.000 215.661 $1,703.72
17-Oct-94 0.034419 D 7.87 8.052 0.943 216.604 $1,704.67
31-Oct-94 0.000000 7.71 8.090 0.000 216.604 $1,670.02
17-Nov-94 0.074000 CG 7.35 8.137 2.181 218.785 $1,608.07
17-Nov-94 0.037572 D 7.35 8.137 1.107 219.892 $1,616.21
30-Nov-94 0.000000 7.47 8.173 0.000 219.892 $1,642.59
16-Dec-94 0.037535 D 7.58 8.216 1.089 220.981 $1,675.04
31-Dec-94 0.000000 7.62 8.258 0.000 220.981 $1,683.88
17-Jan-95 0.036466 D 7.72 8.304 1.044 222.025 $1,714.03
31-Jan-95 0.000000 7.79 8.342 0.000 222.025 $1,729.57
17-Feb-95 0.041404 D 7.91 8.389 1.162 223.187 $1,765.41
28-Feb-95 0.000000 7.98 8.419 0.000 223.187 $1,781.03
17-Mar-95 0.032699 D 8.00 8.466 0.912 224.099 $1,792.79
31-Mar-95 0.000000 8.00 8.504 0.000 224.099 $1,792.79
17-Apr-95 0.035119 D 8.06 8.551 0.976 225.075 $1,814.10
28-Apr-95 0.000000 7.96 8.581 0.000 225.075 $1,791.60
17-May-95 0.036300 D 8.12 8.633 1.006 226.081 $1,835.78
31-May-95 0.000000 8.16 8.671 0.000 226.081 $1,844.82
16-Jun-95 0.038231 D 8.09 8.715 1.068 227.149 $1,837.64
30-Jun-95 0.000000 8.05 8.753 0.000 227.149 $1,828.55
17-Jul-95 0.034696 D 8.13 8.800 0.969 228.118 $1,854.60
31-Jul-95 0.000000 8.06 8.838 0.000 228.118 $1,838.63
17-Aug-95 0.037380 D 7.99 8.885 1.067 229.185 $1,831.19
31-Aug-95 0.000000 8.10 8.923 0.000 229.185 $1,856.40
15-Sep-95 0.036869 D 8.17 8.964 1.034 230.219 $1,880.89
30-Sep-95 8.11 9.005 0.000 230.219 $1,867.08
17-Oct-95 0.035326 D 8.20 9.052 0.992 231.211 $1,895.93
31-Oct-95 0.000000 8.18 9.090 0.000 231.211 $1,891.31
17-Nov-95 0.039263 D 8.19 9.137 1.108 232.319 $1,902.69
17-Nov-95 0.038000 G 8.19 9.137 1.073 233.392 $1,911.48
30-Nov-95 0.000000 8.23 9.173 0.000 233.392 $1,920.82
15-Dec-95 0.033305 D 8.22 9.214 0.946 234.338 $1,926.26
29-Dec-95 0.000000 8.28 9.252 0.000 234.338 $1,940.32
31-Dec-95 0.000000 8.28 9.258 0.000 234.338 $1,940.32
17-Jan-96 0.036956 D 8.27 9.304 1.047 235.385 $1,946.63
31-Jan-96 0.000000 8.29 9.342 0.000 235.385 $1,951.34
16-Feb-96 0.039093 D 8.31 9.386 1.107 236.492 $1,965.25
29-Feb-96 0.000000 8.22 9.422 0.000 236.492 $1,943.96
15-Mar-96 0.032076 D 8.00 9.463 0.948 237.440 $1,899.52
29-Mar-96 0.000000 8.04 9.501 0.000 237.440 $1,909.02
31-Mar-96 0.000000 8.04 9.507 0.000 237.440 $1,909.02
17-Apr-96 0.036712 D 8.01 9.553 1.088 238.528 $1,910.61
30-Apr-96 0.000000 7.99 9.589 0.000 238.528 $1,905.84
17-May-96 0.037392 D 8.02 9.636 1.112 239.640 $1,921.91
31-May-96 0.000000 D 7.97 9.674 0.000 239.640 $1,909.93
17-Jun-96 0.033840 D 7.93 9.721 1.023 240.663 $1,908.46
30-Jun-96 0.000000 8.02 9.756 0.000 240.663 $1,930.12
17-Jul-96 0.035228 D 8.01 9.803 1.058 241.721 $1,936.19
31-Jul-96 8.06 9.841 0.000 241.721 $1,948.27
17-Aug-96 0.037263 D 8.12 9.888 1.109 242.830 $1,971.78
31-Aug-96 8.01 9.926 0.000 242.830 $1,945.07
17-Sep-96 0.035024 D 8.06 9.973 1.055 243.885 $1,965.71
30-Sep-96 0.000000 8.09 10.008 0.000 243.885 $1,973.03
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 7.03%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VA $1,973.03
TOTAL RETURN FOR PERIOD 97.30%
<PAGE>
SELIGMAN OREGON MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 9.97 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $7.50
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
15-Oct-86 7.14 133.333 133.333 $952.00
31-Oct-86 0.000000 7.23 0.044 0.000 133.333 $964.00
30-Nov-86 0.000000 7.24 0.126 0.000 133.333 $965.33
17-Dec-86 0.074416 D 7.22 0.173 1.374 134.707 $972.58
31-Dec-86 7.23 0.211 0.000 134.707 $973.93
19-Jan-87 0.043289 D 7.35 0.263 0.793 135.500 $995.93
31-Jan-87 0.000000 7.40 0.296 0.000 135.500 $1,002.70
17-Feb-87 0.037253 D 7.27 0.342 0.694 136.194 $990.13
28-Feb-87 0.000000 7.41 0.373 0.000 136.194 $1,009.20
17-Mar-87 0.033371 D 7.40 0.419 0.614 136.808 $1,012.38
31-Mar-87 7.26 0.458 0.000 136.808 $993.23
20-Apr-87 0.042277 D 6.60 0.512 0.876 137.684 $908.71
30-Apr-87 0.000000 6.61 0.540 0.000 137.684 $910.09
18-May-87 0.034226 D 6.52 0.589 0.723 138.407 $902.41
31-May-87 0.000000 6.47 0.625 0.000 138.407 $895.49
17-Jun-87 0.036444 D 6.66 0.671 0.757 139.164 $926.83
30-Jun-87 6.67 0.707 0.000 139.164 $928.22
17-Jul-87 0.038073 D 6.71 0.753 0.790 139.954 $939.09
31-Jul-87 0.000000 6.68 0.792 0.000 139.954 $934.89
17-Aug-87 0.033915 D 6.67 0.838 0.712 140.666 $938.24
31-Aug-87 0.000000 6.63 0.877 0.000 140.666 $932.62
17-Sep-87 0.038371 D 6.32 0.923 0.854 141.520 $894.41
30-Sep-87 6.21 0.959 0.000 141.520 $878.84
19-Oct-87 0.040652 D 5.72 1.011 1.006 142.526 $815.25
31-Oct-87 0.000000 7.11 1.044 0.000 142.526 $1,013.36
17-Nov-87 0.036813 D 6.42 1.090 0.817 143.343 $920.26
30-Nov-87 0.000000 6.40 1.126 0.000 143.343 $917.40
17-Dec-87 0.037167 D 6.35 1.173 0.839 144.182 $915.56
31-Dec-87 6.48 1.211 0.000 144.182 $934.30
18-Jan-88 0.037369 D 6.60 1.260 0.816 144.998 $956.99
31-Jan-88 0.000000 6.82 1.296 0.000 144.998 $988.89
17-Feb-88 0.036589 D 6.82 1.342 0.778 145.776 $994.19
29-Feb-88 0.000000 6.86 1.375 0.000 145.776 $1,000.02
17-Mar-88 0.037461 D 6.69 1.422 0.816 146.592 $980.70
31-Mar-88 6.60 1.460 0.000 146.592 $967.51
18-Apr-88 0.040147 D 6.64 1.510 0.886 147.478 $979.25
30-Apr-88 0.000000 6.70 1.542 0.000 147.478 $988.10
17-May-88 0.036180 D 6.65 1.589 0.802 148.280 $986.06
30-May-88 0.000000 6.63 1.625 0.000 148.280 $983.10
19-Jun-88 0.040988 D 6.71 1.679 0.906 149.186 $1,001.04
30-Jun-88 6.72 1.710 0.000 149.186 $1,002.53
18-Jul-88 0.035698 D 6.71 1.759 0.794 149.980 $1,006.37
30-Jul-88 0.000000 6.74 1.792 0.000 149.980 $1,010.87
17-Aug-88 0.036946 D 6.72 1.841 0.825 150.805 $1,013.41
30-Aug-88 0.000000 6.74 1.877 0.000 150.805 $1,016.43
19-Sep-88 0.040238 D 6.81 1.932 0.891 151.696 $1,033.05
30-Sep-88 6.83 1.962 0.000 151.696 $1,036.08
17-Oct-88 0.033680 D 6.90 2.008 0.740 152.436 $1,051.81
30-Oct-88 0.000000 6.96 2.044 0.000 152.436 $1,060.95
17-Nov-88 0.037815 D 6.89 2.093 0.837 153.273 $1,056.05
30-Nov-88 0.000000 6.85 2.129 0.000 153.273 $1,049.92
19-Dec-88 0.039551 D 6.84 2.181 0.886 154.159 $1,054.45
31-Dec-88 6.92 2.214 0.000 154.159 $1,066.78
17-Jan-89 0.035827 D 6.97 2.260 0.792 154.951 $1,080.01
30-Jan-89 0.000000 7.03 2.296 0.000 154.951 $1,089.31
20-Feb-89 0.041132 D 6.94 2.353 0.918 155.869 $1,081.73
28-Feb-89 0.000000 6.91 2.375 0.000 155.869 $1,077.05
19-Mar-89 0.032600 D 6.87 2.427 0.740 156.609 $1,075.90
31-Mar-89 6.86 2.460 0.000 156.609 $1,074.34
17-Apr-89 0.034605 D 6.92 2.507 0.783 157.392 $1,089.15
30-Apr-89 0.000000 7.03 2.542 0.000 157.392 $1,106.47
17-May-89 0.037158 D 7.11 2.589 0.823 158.215 $1,124.91
30-May-89 0.000000 7.14 2.625 0.000 158.215 $1,129.66
19-Jun-89 0.040736 D 7.17 2.679 0.899 159.114 $1,140.85
30-Jun-89 7.19 2.710 0.000 159.114 $1,144.03
17-Jul-89 0.033514 D 7.20 2.756 0.741 159.855 $1,150.96
30-Jul-89 0.000000 7.23 2.792 0.000 159.855 $1,155.75
17-Aug-89 0.037481 D 7.15 2.841 0.838 160.693 $1,148.95
31-Aug-89 7.13 2.879 0.000 160.693 $1,145.74
18-Sep-89 0.039563 D 7.13 2.929 0.892 161.585 $1,152.10
30-Sep-89 7.05 2.962 0.000 161.585 $1,139.17
17-Oct-89 0.035154 D 7.11 3.008 0.799 162.384 $1,154.55
31-Oct-89 7.08 3.047 0.000 162.384 $1,149.68
17-Nov-89 0.039985 D 7.14 3.093 0.909 163.293 $1,165.91
30-Nov-89 7.17 3.129 0.000 163.293 $1,170.81
18-Dec-89 0.035081 D 7.19 3.178 0.797 164.090 $1,179.81
31-Dec-89 7.18 3.214 0.000 164.090 $1,178.17
17-Jan-90 0.035997 D 7.13 3.260 0.828 164.918 $1,175.87
31-Jan-90 7.06 3.299 0.000 164.918 $1,164.32
20-Feb-90 0.043023 D 7.06 3.353 1.005 165.923 $1,171.42
28-Feb-90 7.10 3.375 0.000 165.923 $1,178.05
19-Mar-90 0.032878 D 7.05 3.427 0.774 166.697 $1,175.21
31-Mar-90 7.04 3.460 0.000 166.697 $1,173.55
17-Apr-90 0.034755 D 7.03 3.507 0.824 167.521 $1,177.67
30-Apr-90 6.90 3.542 0.000 167.521 $1,155.89
17-May-90 0.035711 D 7.06 3.589 0.847 168.368 $1,188.68
31-May-90 7.08 3.627 0.000 168.368 $1,192.05
18-Jun-90 0.037434 D 7.12 3.677 0.885 169.253 $1,205.08
30-Jun-90 7.12 3.710 0.000 169.253 $1,205.08
17-Jul-90 0.034471 D 7.16 3.756 0.815 170.068 $1,217.69
31-Jul-90 7.19 3.795 0.000 170.068 $1,222.79
17-Aug-90 0.039149 D 7.07 3.841 0.942 171.010 $1,209.04
31-Aug-90 7.00 3.879 0.000 171.010 $1,197.07
17-Sep-90 0.034018 D 7.02 3.926 0.829 171.839 $1,206.31
30-Sep-90 6.96 3.962 0.000 171.839 $1,196.00
17-Oct-90 0.035556 D 6.99 4.008 0.874 172.713 $1,207.26
31-Oct-90 7.08 4.047 0.000 172.713 $1,222.81
16-Nov-90 0.038827 D 7.18 4.090 0.934 173.647 $1,246.79
30-Nov-90 7.19 4.129 0.000 173.647 $1,248.52
17-Dec-90 0.035365 D 7.18 4.175 0.855 174.502 $1,252.92
31-Dec-90 7.19 4.214 0.000 174.502 $1,254.67
17-Jan-91 0.037879 D 7.23 4.260 0.914 175.416 $1,268.26
31-Jan-91 7.23 4.299 0.000 175.416 $1,268.26
15-Feb-91 0.038693 D 7.32 4.340 0.927 176.343 $1,290.83
28-Feb-91 7.26 4.375 0.000 176.343 $1,280.25
15-Mar-91 0.032349 D 7.25 4.416 0.787 177.130 $1,284.19
31-Mar-91 7.23 4.460 0.000 177.130 $1,280.65
17-Apr-91 0.037670 D 7.29 4.507 0.915 178.045 $1,297.95
30-Apr-91 7.29 4.542 0.000 178.045 $1,297.95
17-May-91 0.039099 D 7.31 4.589 0.952 178.997 $1,308.47
31-May-91 7.33 4.627 0.000 178.997 $1,312.05
17-Jun-91 0.034757 D 7.24 4.674 0.859 179.856 $1,302.16
30-Jun-91 7.27 4.710 0.000 179.856 $1,307.55
17-Jul-91 0.036047 D 7.31 4.756 0.887 180.743 $1,321.23
31-Jul-91 7.33 4.795 0.000 180.743 $1,324.85
16-Aug-91 0.038306 D 7.37 4.838 0.939 181.682 $1,339.00
31-Aug-91 7.37 4.879 0.000 181.682 $1,339.00
17-Sep-91 0.035392 D 7.41 4.926 0.868 182.550 $1,352.70
30-Sep-91 7.42 4.962 0.000 182.550 $1,354.52
17-Oct-91 0.034816 D 7.44 5.008 0.854 183.404 $1,364.53
31-Oct-91 7.43 5.047 0.000 183.404 $1,362.69
15-Nov-91 0.035455 D 7.44 5.088 0.874 184.278 $1,371.03
30-Nov-91 7.42 5.129 0.000 184.278 $1,367.34
17-Dec-91 0.034909 D 7.43 5.175 0.866 185.144 $1,375.62
31-Dec-91 7.51 5.214 0.000 185.144 $1,390.43
17-Jan-92 0.038474 D 7.52 5.260 0.947 186.091 $1,399.40
31-Jan-92 7.49 5.299 0.000 186.091 $1,393.82
16-Feb-92 0.032976 D 7.46 5.342 0.823 186.914 $1,394.38
29-Feb-92 7.47 5.378 0.000 186.914 $1,396.25
17-Mar-92 0.032422 D 7.42 5.425 0.817 187.731 $1,392.96
31-Mar-92 7.43 5.463 0.000 187.731 $1,394.84
16-Apr-92 0.038223 D 7.48 5.507 0.959 188.690 $1,411.40
30-Apr-92 7.46 5.545 0.000 188.690 $1,407.63
15-May-92 0.033119 D 7.50 5.586 0.833 189.523 $1,421.42
31-May-92 7.50 5.630 0.000 189.523 $1,421.42
17-Jun-92 0.035805 D 7.51 5.677 0.904 190.427 $1,430.11
30-Jun-92 7.55 5.712 0.000 190.427 $1,437.72
17-Jul-92 0.036979 D 7.65 5.759 0.920 191.347 $1,463.80
31-Jul-92 7.73 5.797 0.000 191.347 $1,479.11
17-Aug-92 0.033889 D 7.66 5.844 0.847 192.194 $1,472.21
31-Aug-92 7.62 5.882 0.000 192.194 $1,464.52
17-Sep-92 0.036293 D 7.62 5.929 0.915 193.109 $1,471.49
30-Sep-92 7.60 5.964 0.000 193.109 $1,467.63
16-Oct-92 0.036862 D 7.57 6.008 0.940 194.049 $1,468.95
30-Oct-92 7.46 6.047 0.000 194.049 $1,447.61
17-Nov-92 0.037141 D 7.59 6.096 0.950 194.999 $1,480.04
30-Nov-92 7.61 6.132 0.000 194.999 $1,483.94
17-Dec-92 0.034863 D 7.63 6.178 0.891 195.890 $1,494.64
31-Dec-92 0.000000 7.65 6.216 0.000 195.890 $1,498.56
15-Jan-93 0.035854 D 7.66 6.258 0.917 196.807 $1,507.54
29-Jan-93 7.69 6.296 0.000 196.807 $1,513.45
17-Feb-93 0.035356 D 7.77 6.348 0.896 197.703 $1,536.15
26-Feb-93 7.88 6.373 0.000 197.703 $1,557.90
17-Mar-93 0.031612 D 7.80 6.425 0.801 198.504 $1,548.33
31-Mar-93 0.000000 7.78 6.463 0.000 198.504 $1,544.36
16-Apr-93 0.036075 D 7.84 6.507 0.913 199.417 $1,563.43
30-Apr-93 7.82 6.545 0.000 199.417 $1,559.44
17-May-93 0.033507 D 7.84 6.592 0.852 200.269 $1,570.11
31-May-93 7.85 6.630 0.000 200.269 $1,572.11
17-Jun-93 0.035024 D 7.88 6.677 0.890 201.159 $1,585.13
30-Jun-93 0.000000 7.93 6.712 0.000 201.159 $1,595.19
16-Jul-93 0.035055 D 7.96 6.756 0.886 202.045 $1,608.28
30-Jul-93 0.000000 7.92 6.795 0.000 202.045 $1,600.20
17-Aug-93 0.033527 D 8.01 6.844 0.846 202.891 $1,625.16
31-Aug-93 0.000000 8.04 6.882 0.000 202.891 $1,631.24
17-Sep-93 0.036802 D 8.08 6.929 0.924 203.815 $1,646.83
30-Sep-93 0.000000 8.08 6.964 0.000 203.815 $1,646.83
15-Oct-93 0.031237 D 8.12 7.005 0.784 204.599 $1,661.34
29-Oct-93 8.04 7.044 0.000 204.599 $1,644.98
17-Nov-93 0.033726 D 7.92 7.096 0.871 205.470 $1,627.32
17-Nov-93 0.064000 G 7.92 7.096 1.653 207.123 $1,640.41
30-Nov-93 0.000000 7.91 7.132 0.000 207.123 $1,638.34
17-Dec-93 0.033786 D 7.97 7.178 0.878 208.001 $1,657.77
31-Dec-93 0.000000 7.99 7.216 0.000 208.001 $1,661.93
17-Jan-94 0.031328 D 7.98 7.263 0.817 208.818 $1,666.37
31-Jan-94 0.000000 8.03 7.301 0.000 208.818 $1,676.81
17-Feb-94 0.034069 D 7.94 7.348 0.896 209.714 $1,665.13
28-Feb-94 0.000000 7.86 7.378 0.000 209.714 $1,648.35
17-Mar-94 0.030803 D 7.76 7.425 0.832 210.546 $1,633.84
31-Mar-94 0.000000 7.54 7.463 0.000 210.546 $1,587.52
15-Apr-94 0.034593 D 7.52 7.504 0.969 211.515 $1,590.59
29-Apr-94 0.000000 7.52 7.542 0.000 211.515 $1,590.59
17-May-94 0.034086 D 7.54 7.592 0.956 212.471 $1,602.03
31-May-94 7.58 7.630 0.000 212.471 $1,610.53
17-Jun-94 0.037175 D 7.62 7.677 1.037 213.508 $1,626.93
30-Jun-94 0.000000 7.50 7.712 0.000 213.508 $1,601.31
15-Jul-94 0.031188 D 7.55 7.753 0.882 214.390 $1,618.64
29-Jul-94 0.000000 7.59 7.792 0.000 214.390 $1,627.22
17-Aug-94 0.034415 D 7.58 7.844 0.973 215.363 $1,632.45
31-Aug-94 0.000000 7.58 7.882 0.000 215.363 $1,632.45
16-Sep-94 0.035190 D 7.49 7.926 1.012 216.375 $1,620.65
30-Sep-94 0.000000 7.43 7.964 0.000 216.375 $1,607.67
17-Oct-94 0.031802 D 7.43 8.011 0.926 217.301 $1,614.55
31-Oct-94 0.000000 7.24 8.049 0.000 217.301 $1,573.26
17-Nov-94 0.034425 D 6.96 8.096 1.075 218.376 $1,519.90
17-Nov-94 0.018000 CG 6.96 8.096 0.562 218.938 $1,523.81
30-Nov-94 0.000000 7.06 8.132 0.000 218.938 $1,545.70
16-Dec-94 0.034287 D 7.19 8.175 1.044 219.982 $1,581.67
31-Dec-94 0.000000 7.21 8.216 0.000 219.982 $1,586.07
17-Jan-95 0.033272 D 7.32 8.263 1.000 220.982 $1,617.59
31-Jan-95 0.000000 7.38 8.301 0.000 220.982 $1,630.85
17-Feb-95 0.037693 D 7.48 8.348 1.114 222.096 $1,661.28
28-Feb-95 0.000000 7.54 8.378 0.000 222.096 $1,674.60
17-Mar-95 0.030261 D 7.56 8.425 0.889 222.985 $1,685.77
31-Mar-95 0.000000 7.55 8.463 0.000 222.985 $1,683.54
17-Apr-95 0.032293 D 7.61 8.510 0.946 223.931 $1,704.11
28-Apr-95 0.000000 7.53 8.540 0.000 223.931 $1,686.20
17-May-95 0.033135 D 7.67 8.592 0.967 224.898 $1,724.97
31-May-95 0.000000 7.70 8.630 0.000 224.898 $1,731.71
16-Jun-95 0.034977 D 7.63 8.674 1.031 225.929 $1,723.84
30-Jun-95 0.000000 7.60 8.712 0.000 225.929 $1,717.06
17-Jul-95 0.031540 D 7.67 8.759 0.929 226.858 $1,740.00
31-Jul-95 0.000000 7.61 8.797 0.000 226.858 $1,726.39
17-Aug-95 0.033992 D 7.56 8.844 1.020 227.878 $1,722.76
31-Aug-95 0.000000 7.65 8.882 0.000 227.878 $1,743.27
15-Sep-95 0.033642 D 7.70 8.923 0.996 228.874 $1,762.33
30-Sep-95 7.66 8.964 0.000 228.874 $1,753.17
17-Oct-95 0.032355 D 7.74 9.011 0.957 229.831 $1,778.89
31-Oct-95 0.000000 7.72 9.049 0.000 229.831 $1,774.30
17-Nov-95 0.008000 G 7.75 9.096 0.237 230.068 $1,783.03
17-Nov-95 0.035633 D 7.75 9.096 1.057 231.125 $1,791.22
30-Nov-95 0.000000 7.80 9.132 0.000 231.125 $1,802.78
15-Dec-95 0.030420 D 7.78 9.173 0.904 232.029 $1,805.19
29-Dec-95 0.000000 7.83 9.211 0.000 232.029 $1,816.79
31-Dec-95 0.000000 7.83 9.216 0.000 232.029 $1,816.79
17-Jan-96 0.033875 D 7.82 9.263 1.005 233.034 $1,822.33
31-Jan-96 0.000000 7.82 9.301 0.000 233.034 $1,822.33
16-Feb-96 0.036201 D 7.81 9.345 1.080 234.114 $1,828.43
29-Feb-96 0.000000 7.75 9.381 0.000 234.114 $1,814.38
15-Mar-96 0.029749 D 7.55 9.422 0.922 235.036 $1,774.52
29-Mar-96 0.000000 7.61 9.460 0.000 235.036 $1,788.62
31-Mar-96 0.000000 7.61 9.466 0.000 235.036 $1,788.62
17-Apr-96 0.033903 D 7.58 9.512 1.051 236.087 $1,789.54
30-Apr-96 0.000000 7.55 9.548 0.000 236.087 $1,782.46
17-May-96 0.034930 D 7.59 9.595 1.086 237.173 $1,800.14
31-May-96 0.000000 D 7.55 9.633 0.000 237.173 $1,790.66
17-Jun-96 0.031152 D 7.51 9.679 0.984 238.157 $1,788.56
30-Jun-96 0.000000 7.59 9.715 0.000 238.157 $1,807.61
17-Jul-96 0.032377 D 7.58 9.762 1.017 239.174 $1,812.94
31-Jul-96 7.63 9.800 0.000 239.174 $1,824.90
17-Aug-96 0.034303 D 7.68 9.847 1.068 240.242 $1,845.06
31-Aug-96 7.58 9.885 0.000 240.242 $1,821.03
17-Sep-96 0.032111 D 7.61 9.932 1.014 241.256 $1,835.96
30-Sep-96 0.000000 7.65 9.967 0.000 241.256 $1,845.61
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 6.34%
N = NUMBER OF YEARS - 9.967
ERV = ENDING REDEEMABLE VA $1,845.61
TOTAL RETURN FOR PERIOD 84.56%
<PAGE>
SELIGMAN S. CAROLINA MUNICIPAL SERIES CL A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 9.26 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQ $7.50
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
30-Jun-87 7.14 133.333 133.333 $952.00
30-Jul-87 0.000000 7.12 0.082 0.000 133.333 $949.33
30-Aug-87 0.000000 7.07 0.167 0.000 133.333 $942.66
17-Sep-87 0.087032 D 6.69 0.216 1.735 135.068 $903.60
30-Sep-87 6.67 0.252 0.000 135.068 $900.90
19-Oct-87 0.044431 D 6.17 0.304 0.973 136.041 $839.37
30-Oct-87 0.000000 6.67 0.334 0.000 136.041 $907.39
17-Nov-87 0.040284 D 6.83 0.384 0.802 136.843 $934.64
30-Nov-87 0.000000 6.84 0.419 0.000 136.843 $936.01
17-Dec-87 0.041747 D 6.81 0.466 0.839 137.682 $937.61
31-Dec-87 6.96 0.504 0.000 137.682 $958.27
18-Jan-88 0.045605 D 7.05 0.553 0.891 138.573 $976.94
30-Jan-88 0.000000 7.25 0.586 0.000 138.573 $1,004.65
17-Feb-88 0.041577 D 7.27 0.636 0.792 139.365 $1,013.18
28-Feb-88 0.000000 7.30 0.666 0.000 139.365 $1,017.36
17-Mar-88 0.038326 D 7.10 0.715 0.752 140.117 $994.83
31-Mar-88 7.07 0.753 0.000 140.117 $990.63
18-Apr-88 0.042673 D 7.02 0.803 0.852 140.969 $989.60
30-Apr-88 0.000000 7.06 0.836 0.000 140.969 $995.24
17-May-88 0.038843 D 7.05 0.882 0.777 141.746 $999.31
30-May-88 0.000000 6.99 0.918 0.000 141.746 $990.80
19-Jun-88 0.044776 D 7.08 0.973 0.896 142.642 $1,009.91
30-Jun-88 7.11 1.003 0.000 142.642 $1,014.18
18-Jul-88 0.039037 D 7.08 1.052 0.786 143.428 $1,015.47
30-Jul-88 0.000000 7.09 1.085 0.000 143.428 $1,016.90
17-Aug-88 0.041198 D 7.05 1.134 0.838 144.266 $1,017.08
30-Aug-88 0.000000 7.08 1.170 0.000 144.266 $1,021.40
19-Sep-88 0.045145 D 7.21 1.225 0.903 145.169 $1,046.67
30-Sep-88 7.21 1.255 0.000 145.169 $1,046.67
17-Oct-88 0.037970 D 7.29 1.301 0.756 145.925 $1,063.79
30-Oct-88 0.000000 7.36 1.337 0.000 145.925 $1,074.01
17-Nov-88 0.042003 D 7.24 1.386 0.847 146.772 $1,062.63
17-Nov-88 0.009000 G 7.24 1.386 0.181 146.953 $1,063.94
30-Nov-88 0.000000 7.19 1.422 0.000 146.953 $1,056.59
19-Dec-88 0.042462 D 7.20 1.474 0.867 147.820 $1,064.30
31-Dec-88 7.29 1.507 0.000 147.820 $1,077.61
17-Jan-89 0.038832 D 7.36 1.553 0.780 148.600 $1,093.70
30-Jan-89 0.000000 7.40 1.589 0.000 148.600 $1,099.64
20-Feb-89 0.044689 D 7.27 1.647 0.913 149.513 $1,086.96
28-Feb-89 0.000000 7.24 1.668 0.000 149.513 $1,082.47
19-Mar-89 0.035789 D 7.21 1.721 0.742 150.255 $1,083.34
31-Mar-89 7.21 1.753 0.000 150.255 $1,083.34
17-Apr-89 0.038107 D 7.27 1.800 0.788 151.043 $1,098.08
30-Apr-89 0.000000 7.37 1.836 0.000 151.043 $1,113.19
17-May-89 0.039734 D 7.45 1.882 0.806 151.849 $1,131.28
30-May-89 0.000000 7.50 1.918 0.000 151.849 $1,138.87
19-Jun-89 0.043113 D 7.52 1.973 0.871 152.720 $1,148.45
30-Jun-89 7.55 2.003 0.000 152.720 $1,153.04
17-Jul-89 0.036026 D 7.56 2.049 0.728 153.448 $1,160.07
30-Jul-89 0.000000 7.59 2.085 0.000 153.448 $1,164.67
17-Aug-89 0.040619 D 7.47 2.134 0.834 154.282 $1,152.49
31-Aug-89 7.45 2.173 0.000 154.282 $1,149.40
18-Sep-89 0.042894 D 7.45 2.222 0.888 155.170 $1,156.02
30-Sep-89 7.38 2.255 0.000 155.170 $1,145.15
17-Oct-89 0.038183 D 7.48 2.301 0.792 155.962 $1,166.60
31-Oct-89 7.42 2.340 0.000 155.962 $1,157.24
17-Nov-89 0.043275 D 7.50 2.386 0.900 156.862 $1,176.47
30-Nov-89 7.55 2.422 0.000 156.862 $1,184.31
18-Dec-89 0.038306 D 7.56 2.471 0.795 157.657 $1,191.89
31-Dec-89 7.56 2.507 0.000 157.657 $1,191.89
17-Jan-90 0.039032 D 7.49 2.553 0.822 158.479 $1,187.01
31-Jan-90 7.39 2.592 0.000 158.479 $1,171.16
20-Feb-90 0.046511 D 7.40 2.647 0.996 159.475 $1,180.12
28-Feb-90 7.44 2.668 0.000 159.475 $1,186.49
19-Mar-90 0.035207 D 7.41 2.721 0.758 160.233 $1,187.33
31-Mar-90 7.41 2.753 0.000 160.233 $1,187.33
17-Apr-90 0.037533 D 7.39 2.800 0.814 161.047 $1,190.14
30-Apr-90 7.24 2.836 0.000 161.047 $1,165.98
17-May-90 0.039019 D 7.42 2.882 0.847 161.894 $1,201.25
31-May-90 7.44 2.921 0.000 161.894 $1,204.49
18-Jun-90 0.041937 D 7.47 2.970 0.909 162.803 $1,216.14
30-Jun-90 7.47 3.003 0.000 162.803 $1,216.14
17-Jul-90 0.038294 D 7.52 3.049 0.829 163.632 $1,230.51
31-Jul-90 7.57 3.088 0.000 163.632 $1,238.69
17-Aug-90 0.043919 D 7.39 3.134 0.972 164.604 $1,216.42
31-Aug-90 7.29 3.173 0.000 164.604 $1,199.96
17-Sep-90 0.038986 D 7.31 3.219 0.878 165.482 $1,209.67
30-Sep-90 7.23 3.255 0.000 165.482 $1,196.43
17-Oct-90 0.038969 D 7.27 3.301 0.887 166.369 $1,209.50
31-Oct-90 7.38 3.340 0.000 166.369 $1,227.80
16-Nov-90 0.040390 D 7.48 3.384 0.898 167.267 $1,251.16
16-Nov-90 0.037000 G 7.48 3.384 0.823 168.090 $1,257.31
30-Nov-90 7.49 3.422 0.000 168.090 $1,258.99
17-Dec-90 0.037145 D 7.50 3.468 0.832 168.922 $1,266.92
31-Dec-90 7.48 3.507 0.000 168.922 $1,263.54
17-Jan-91 0.040027 D 7.51 3.553 0.900 169.822 $1,275.36
31-Jan-91 7.55 3.592 0.000 169.822 $1,282.16
15-Feb-91 0.041157 D 7.64 3.633 0.915 170.737 $1,304.43
28-Feb-91 7.54 3.668 0.000 170.737 $1,287.36
15-Mar-91 0.034640 D 7.53 3.710 0.785 171.522 $1,291.56
31-Mar-91 7.51 3.753 0.000 171.522 $1,288.13
17-Apr-91 0.039545 D 7.59 3.800 0.894 172.416 $1,308.64
30-Apr-91 7.60 3.836 0.000 172.416 $1,310.36
17-May-91 0.041107 D 7.61 3.882 0.931 173.347 $1,319.17
31-May-91 7.62 3.921 0.000 173.347 $1,320.90
17-Jun-91 0.036819 D 7.50 3.967 0.851 174.198 $1,306.49
30-Jun-91 7.55 4.003 0.000 174.198 $1,315.19
17-Jul-91 0.037903 D 7.58 4.049 0.871 175.069 $1,327.02
31-Jul-91 7.60 4.088 0.000 175.069 $1,330.52
16-Aug-91 0.039406 D 7.64 4.132 0.903 175.972 $1,344.43
31-Aug-91 7.65 4.173 0.000 175.972 $1,346.19
17-Sep-91 0.037115 D 7.69 4.219 0.849 176.821 $1,359.75
30-Sep-91 7.71 4.255 0.000 176.821 $1,363.29
17-Oct-91 0.037240 D 7.74 4.301 0.851 177.672 $1,375.18
31-Oct-91 7.74 4.340 0.000 177.672 $1,375.18
15-Nov-91 0.015000 G 7.74 4.381 0.344 178.016 $1,377.84
15-Nov-91 0.037983 D 7.74 4.381 0.872 178.888 $1,384.59
30-Nov-91 7.69 4.422 0.000 178.888 $1,375.65
17-Dec-91 0.036337 D 7.73 4.468 0.841 179.729 $1,389.31
31-Dec-91 7.84 4.507 0.000 179.729 $1,409.08
17-Jan-92 0.042205 D 7.85 4.553 0.966 180.695 $1,418.46
31-Jan-92 7.79 4.592 0.000 180.695 $1,407.61
16-Feb-92 0.036639 D 7.75 4.636 0.854 181.549 $1,407.00
29-Feb-92 7.77 4.671 0.000 181.549 $1,410.64
17-Mar-92 0.036104 D 7.72 4.718 0.849 182.398 $1,408.11
31-Mar-92 7.76 4.756 0.000 182.398 $1,415.41
16-Apr-92 0.040788 D 7.82 4.800 0.951 183.349 $1,433.79
30-Apr-92 7.78 4.838 0.000 183.349 $1,426.46
15-May-92 0.034604 D 7.85 4.879 0.808 184.157 $1,445.63
31-May-92 7.84 4.923 0.000 184.157 $1,443.79
17-Jun-92 0.037671 D 7.89 4.970 0.879 185.036 $1,459.93
30-Jun-92 7.94 5.005 0.000 185.036 $1,469.19
17-Jul-92 0.038490 D 8.06 5.052 0.884 185.920 $1,498.52
31-Jul-92 8.13 5.090 0.000 185.920 $1,511.53
17-Aug-92 0.034308 D 8.06 5.137 0.791 186.711 $1,504.89
31-Aug-92 8.01 5.175 0.000 186.711 $1,495.56
17-Sep-92 0.037547 D 8.02 5.222 0.874 187.585 $1,504.43
30-Sep-92 8.00 5.258 0.000 187.585 $1,500.68
16-Oct-92 0.037727 D 7.95 5.301 0.890 188.475 $1,498.38
30-Oct-92 7.84 5.340 0.000 188.475 $1,477.64
17-Nov-92 0.035943 D 7.94 5.389 0.853 189.328 $1,503.26
17-Nov-92 0.020000 G 7.94 5.389 0.475 189.803 $1,507.04
30-Nov-92 7.96 5.425 0.000 189.803 $1,510.83
17-Dec-92 0.036673 D 7.99 5.471 0.871 190.674 $1,523.49
31-Dec-92 0.000000 8.01 5.510 0.000 190.674 $1,527.30
15-Jan-93 0.037475 D 8.03 5.551 0.890 191.564 $1,538.26
29-Jan-93 8.07 5.589 0.000 191.564 $1,545.92
17-Feb-93 0.036184 D 8.16 5.641 0.849 192.413 $1,570.09
26-Feb-93 8.31 5.666 0.000 192.413 $1,598.95
17-Mar-93 0.032492 D 8.20 5.718 0.762 193.175 $1,584.04
31-Mar-93 0.000000 8.17 5.756 0.000 193.175 $1,578.24
16-Apr-93 0.037029 D 8.25 5.800 0.867 194.042 $1,600.85
30-Apr-93 8.22 5.838 0.000 194.042 $1,595.03
17-May-93 0.034155 D 8.24 5.885 0.804 194.846 $1,605.53
31-May-93 8.23 5.923 0.000 194.846 $1,603.58
17-Jun-93 0.036029 D 8.29 5.970 0.847 195.693 $1,622.29
30-Jun-93 0.000000 8.34 6.005 0.000 195.693 $1,632.08
16-Jul-93 0.034534 D 8.36 6.049 0.808 196.501 $1,642.75
30-Jul-93 0.000000 8.30 6.088 0.000 196.501 $1,630.96
17-Aug-93 0.034094 D 8.41 6.137 0.797 197.298 $1,659.28
31-Aug-93 0.000000 8.46 6.175 0.000 197.298 $1,669.14
17-Sep-93 0.038615 D 8.53 6.222 0.893 198.191 $1,690.57
30-Sep-93 0.000000 8.52 6.258 0.000 198.191 $1,688.59
15-Oct-93 0.031528 D 8.61 6.299 0.726 198.917 $1,712.68
29-Oct-93 8.51 6.337 0.000 198.917 $1,692.78
17-Nov-93 0.124000 G 8.30 6.389 2.972 201.889 $1,675.68
17-Nov-93 0.034983 D 8.30 6.389 0.838 202.727 $1,682.63
30-Nov-93 0.000000 8.27 6.425 0.000 202.727 $1,676.55
17-Dec-93 0.035538 D 8.35 6.471 0.863 203.590 $1,699.98
31-Dec-93 0.000000 8.38 6.510 0.000 203.590 $1,706.08
17-Jan-94 0.032039 D 8.37 6.556 0.779 204.369 $1,710.57
31-Jan-94 0.000000 8.44 6.595 0.000 204.369 $1,724.87
17-Feb-94 0.034261 D 8.29 6.641 0.845 205.214 $1,701.22
28-Feb-94 0.000000 8.17 6.671 0.000 205.214 $1,676.60
17-Mar-94 0.031133 D 8.04 6.718 0.795 206.009 $1,656.31
31-Mar-94 0.000000 7.77 6.756 0.000 206.009 $1,600.69
15-Apr-94 0.034906 D 7.76 6.797 0.927 206.936 $1,605.82
29-Apr-94 0.000000 7.75 6.836 0.000 206.936 $1,603.75
17-May-94 0.034558 D 7.76 6.885 0.922 207.858 $1,612.98
31-May-94 7.81 6.923 0.000 207.858 $1,623.37
17-Jun-94 0.037650 D 7.86 6.970 0.996 208.854 $1,641.59
30-Jun-94 0.000000 7.71 7.005 0.000 208.854 $1,610.26
15-Jul-94 0.031694 D 7.77 7.047 0.852 209.706 $1,629.42
29-Jul-94 0.000000 7.84 7.085 0.000 209.706 $1,644.10
17-Aug-94 0.035252 D 7.81 7.137 0.947 210.653 $1,645.20
31-Aug-94 0.000000 7.81 7.175 0.000 210.653 $1,645.20
16-Sep-94 0.036241 D 7.69 7.219 0.993 211.646 $1,627.56
30-Sep-94 0.000000 7.61 7.258 0.000 211.646 $1,610.63
17-Oct-94 0.033133 D 7.60 7.304 0.923 212.569 $1,615.52
31-Oct-94 0.000000 7.42 7.342 0.000 212.569 $1,577.26
17-Nov-94 0.036221 D 7.10 7.389 1.084 213.653 $1,516.94
17-Nov-94 0.014000 CG 7.10 7.389 0.419 214.072 $1,519.91
30-Nov-94 0.000000 7.24 7.425 0.000 214.072 $1,549.88
16-Dec-94 0.035489 D 7.37 7.468 1.031 215.103 $1,585.31
31-Dec-94 0.000000 7.40 7.510 0.000 215.103 $1,591.76
17-Jan-95 0.033721 D 7.51 7.556 0.966 216.069 $1,622.68
31-Jan-95 0.000000 7.58 7.595 0.000 216.069 $1,637.80
17-Feb-95 0.038492 D 7.74 7.641 1.075 217.144 $1,680.69
28-Feb-95 0.000000 7.82 7.671 0.000 217.144 $1,698.07
17-Mar-95 0.030424 D 7.84 7.718 0.843 217.987 $1,709.02
31-Mar-95 0.000000 7.83 7.756 0.000 217.987 $1,706.84
17-Apr-95 0.032949 D 7.91 7.803 0.908 218.895 $1,731.46
28-Apr-95 0.000000 7.79 7.833 0.000 218.895 $1,705.19
17-May-95 0.034189 D 8.00 7.885 0.935 219.830 $1,758.64
31-May-95 0.000000 8.04 7.923 0.000 219.830 $1,767.43
16-Jun-95 0.036065 D 7.94 7.967 0.999 220.829 $1,753.38
30-Jun-95 0.000000 7.89 8.005 0.000 220.829 $1,742.34
17-Jul-95 0.032632 D 7.99 8.052 0.902 221.731 $1,771.63
31-Jul-95 0.000000 7.90 8.090 0.000 221.731 $1,751.67
17-Aug-95 0.035083 D 7.82 8.137 0.995 222.726 $1,741.72
31-Aug-95 0.000000 7.96 8.175 0.000 222.726 $1,772.90
15-Sep-95 0.034783 D 8.05 8.216 0.962 223.688 $1,800.69
30-Sep-95 7.97 8.258 0.000 223.688 $1,782.79
17-Oct-95 0.033556 D 8.10 8.304 0.927 224.615 $1,819.38
31-Oct-95 0.000000 8.08 8.342 0.000 224.615 $1,814.89
17-Nov-95 0.018000 G 8.13 8.389 0.497 225.112 $1,830.16
17-Nov-95 0.037026 D 8.13 8.389 1.023 226.135 $1,838.48
30-Nov-95 0.000000 8.19 8.425 0.000 226.135 $1,852.05
15-Dec-95 0.031348 D 8.18 8.466 0.867 227.002 $1,856.88
29-Dec-95 0.000000 8.25 8.504 0.000 227.002 $1,872.77
31-Dec-95 8.25 8.510 0.000 227.002 $1,872.77
17-Jan-96 0.034926 D 8.22 8.556 0.965 227.967 $1,873.89
31-Jan-96 0.000000 8.25 8.595 0.000 227.967 $1,880.73
16-Feb-96 0.037460 D 8.26 8.638 1.034 229.001 $1,891.55
29-Feb-96 0.000000 8.16 8.674 0.000 229.001 $1,868.65
15-Mar-96 0.030889 D 7.92 8.715 0.893 229.894 $1,820.76
29-Mar-96 0.000000 7.99 8.753 0.000 229.894 $1,836.85
31-Mar-96 7.99 8.759 0.000 229.894 $1,836.85
17-Apr-96 0.035327 D 7.94 8.805 1.023 230.917 $1,833.48
30-Apr-96 0.000000 7.92 8.841 0.000 230.917 $1,828.86
17-May-96 0.036316 D 7.97 8.888 1.052 231.969 $1,848.79
31-May-96 0.000000 D 7.91 8.926 0.000 231.969 $1,834.87
17-Jun-96 0.033139 D 7.86 8.973 0.978 232.947 $1,830.96
30-Jun-96 0.000000 7.97 9.008 0.000 232.947 $1,856.59
17-Jul-96 0.034167 D 7.96 9.055 1.000 233.947 $1,862.22
31-Jul-96 8.01 9.093 0.000 233.947 $1,873.92
17-Aug-96 0.036371 D 8.10 9.140 1.050 234.997 $1,903.48
31-Aug-96 7.97 9.178 0.000 234.997 $1,872.93
17-Sep-96 0.033894 D 8.03 9.225 0.992 235.989 $1,894.99
30-Sep-96 0.000000 8.07 9.260 0.000 235.989 $1,904.43
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 7.20%
N = NUMBER OF YEARS - 9.26
ERV = ENDING REDEEMABLE VA $1,904.43
TOTAL RETURN FOR PERIOD 90.44%
<PAGE>
SELIGMAN NATIONAL MUNICIPAL SERIES CLASS A
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 10.00 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 4.75% MAXIMUM OFFERING PRICE EQUALS $8.90
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
30-Sep-86 8.48 112.360 112.360 $952.81
17-Oct-86 0.054170 D 8.18 0.047 0.744 113.104 $925.19
17-Oct-86 0.325000 G 8.18 0.047 4.464 117.568 $961.71
31-Oct-86 0.000000 8.29 0.085 0.000 117.568 $974.64
17-Nov-86 0.045966 D 8.34 0.132 0.648 118.216 $985.92
30-Nov-86 0.000000 8.39 0.167 0.000 118.216 $991.83
17-Dec-86 0.047866 D 8.34 0.214 0.678 118.894 $991.58
31-Dec-86 8.34 0.252 0.000 118.894 $991.58
19-Jan-87 0.053933 D 8.46 0.304 0.758 119.652 $1,012.26
31-Jan-87 0.000000 8.54 0.337 0.000 119.652 $1,021.83
17-Feb-87 0.045955 D 8.53 0.384 0.645 120.297 $1,026.13
28-Feb-87 0.000000 8.57 0.414 0.000 120.297 $1,030.95
17-Mar-87 0.043641 D 8.59 0.460 0.611 120.908 $1,038.60
31-Mar-87 8.49 0.499 0.000 120.908 $1,026.51
20-Apr-87 0.054708 D 7.89 0.553 0.838 121.746 $960.58
30-Apr-87 0.000000 7.86 0.581 0.000 121.746 $956.92
18-May-87 0.045187 D 7.80 0.630 0.705 122.451 $955.12
31-May-87 0.000000 7.75 0.666 0.000 122.451 $949.00
17-Jun-87 0.048072 D 7.90 0.712 0.745 123.196 $973.25
30-Jun-87 7.86 0.748 0.000 123.196 $968.32
17-Jul-87 0.050640 D 7.91 0.795 0.789 123.985 $980.72
31-Jul-87 0.000000 7.90 0.833 0.000 123.985 $979.48
17-Aug-87 0.046253 D 7.91 0.879 0.725 124.710 $986.46
31-Aug-87 0.000000 7.84 0.918 0.000 124.710 $977.73
17-Sep-87 0.049800 D 7.51 0.964 0.827 125.537 $942.78
30-Sep-87 7.41 1.000 0.000 125.537 $930.23
19-Oct-87 0.317000 G 6.53 1.052 6.094 131.631 $859.55
19-Oct-87 0.051326 D 6.53 1.052 0.987 132.618 $866.00
31-Oct-87 0.000000 7.01 1.085 0.000 132.618 $929.65
17-Nov-87 0.044118 D 7.22 1.132 0.810 133.428 $963.35
30-Nov-87 0.000000 7.20 1.167 0.000 133.428 $960.68
17-Dec-87 0.045048 D 7.16 1.214 0.839 134.267 $961.35
31-Dec-87 7.28 1.252 0.000 134.267 $977.46
18-Jan-88 0.045113 D 7.40 1.301 0.819 135.086 $999.64
31-Jan-88 0.000000 7.57 1.337 0.000 135.086 $1,022.60
17-Feb-88 0.043863 D 7.54 1.384 0.786 135.872 $1,024.47
29-Feb-88 0.000000 7.59 1.416 0.000 135.872 $1,031.27
17-Mar-88 0.043842 D 7.42 1.463 0.803 136.675 $1,014.13
31-Mar-88 7.35 1.501 0.000 136.675 $1,004.56
18-Apr-88 0.047627 D 7.35 1.551 0.886 137.561 $1,011.07
30-Apr-88 0.000000 7.38 1.584 0.000 137.561 $1,015.20
17-May-88 0.042509 D 7.36 1.630 0.795 138.356 $1,018.30
31-May-88 0.000000 7.33 1.668 0.000 138.356 $1,014.15
19-Jun-88 0.048265 D 7.44 1.721 0.898 139.254 $1,036.05
30-Jun-88 7.48 1.751 0.000 139.254 $1,041.62
18-Jul-88 0.042265 D 7.46 1.800 0.789 140.043 $1,044.72
31-Jul-88 0.000000 7.48 1.836 0.000 140.043 $1,047.52
17-Aug-88 0.044065 D 7.47 1.882 0.826 140.869 $1,052.29
31-Aug-88 0.000000 7.49 1.921 0.000 140.869 $1,055.11
19-Sep-88 0.048609 D 7.63 1.973 0.897 141.766 $1,081.67
30-Sep-88 7.64 2.003 0.000 141.766 $1,083.09
17-Oct-88 0.041007 D 7.69 2.049 0.756 142.522 $1,095.99
31-Oct-88 0.000000 7.77 2.088 0.000 142.522 $1,107.40
17-Nov-88 0.020000 G 7.67 2.134 0.372 142.894 $1,096.00
17-Nov-88 0.045379 D 7.67 2.134 0.843 143.737 $1,102.46
30-Nov-88 0.000000 7.61 2.170 0.000 143.737 $1,093.84
19-Dec-88 0.046461 D 7.59 2.222 0.880 144.617 $1,097.64
31-Dec-88 7.70 2.255 0.000 144.617 $1,113.55
17-Jan-89 0.042114 D 7.76 2.301 0.785 145.402 $1,128.32
31-Jan-89 0.000000 7.81 2.340 0.000 145.402 $1,135.59
20-Feb-89 0.049937 D 7.69 2.395 0.944 146.346 $1,125.40
28-Feb-89 0.000000 7.67 2.416 0.000 146.346 $1,122.47
19-Mar-89 0.039660 D 7.64 2.468 0.760 147.106 $1,123.89
31-Mar-89 7.64 2.501 0.000 147.106 $1,123.89
17-Apr-89 0.041709 D 7.69 2.548 0.798 147.904 $1,137.38
30-Apr-89 0.000000 7.79 2.584 0.000 147.904 $1,152.17
17-May-89 0.043551 D 7.85 2.630 0.821 148.725 $1,167.49
31-May-89 0.000000 7.88 2.668 0.000 148.725 $1,171.95
19-Jun-89 0.048633 D 7.90 2.721 0.916 149.641 $1,182.16
30-Jun-89 7.96 2.751 0.000 149.641 $1,191.14
17-Jul-89 0.040991 D 7.93 2.797 0.774 150.415 $1,192.79
31-Jul-89 0.000000 7.97 2.836 0.000 150.415 $1,198.81
17-Aug-89 0.045018 D 7.83 2.882 0.865 151.280 $1,184.52
31-Aug-89 7.79 2.921 0.000 151.280 $1,178.47
18-Sep-89 0.046825 D 7.79 2.970 0.909 152.189 $1,185.55
30-Sep-89 7.73 3.003 0.000 152.189 $1,176.42
17-Oct-89 0.040848 D 7.84 3.049 0.793 152.982 $1,199.38
31-Oct-89 7.79 3.088 0.000 152.982 $1,191.73
17-Nov-89 0.097000 G 7.77 3.134 1.910 154.892 $1,203.51
17-Nov-89 0.046111 D 7.77 3.134 0.908 155.800 $1,210.57
30-Nov-89 7.82 3.170 0.000 155.800 $1,218.36
18-Dec-89 0.039357 D 7.82 3.219 0.784 156.584 $1,224.49
31-Dec-89 7.81 3.255 0.000 156.584 $1,222.92
17-Jan-90 0.040230 D 7.75 3.301 0.813 157.397 $1,219.83
31-Jan-90 7.66 3.340 0.000 157.397 $1,205.66
20-Feb-90 0.049177 D 7.68 3.395 1.008 158.405 $1,216.55
28-Feb-90 7.71 3.416 0.000 158.405 $1,221.30
19-Mar-90 0.039075 D 7.66 3.468 0.808 159.213 $1,219.57
31-Mar-90 7.63 3.501 0.000 159.213 $1,214.80
17-Apr-90 0.041403 D 7.62 3.548 0.865 160.078 $1,219.79
30-Apr-90 7.45 3.584 0.000 160.078 $1,192.58
17-May-90 0.042508 D 7.66 3.630 0.888 160.966 $1,233.00
31-May-90 7.68 3.668 0.000 160.966 $1,236.22
18-Jun-90 0.044575 D 7.70 3.718 0.932 161.898 $1,246.61
30-Jun-90 7.70 3.751 0.000 161.898 $1,246.61
17-Jul-90 0.040379 D 7.77 3.797 0.841 162.739 $1,264.48
31-Jul-90 7.82 3.836 0.000 162.739 $1,272.62
17-Aug-90 0.046844 D 7.64 3.882 0.998 163.737 $1,250.95
31-Aug-90 7.54 3.921 0.000 163.737 $1,234.58
17-Sep-90 0.040132 D 7.56 3.967 0.869 164.606 $1,244.42
30-Sep-90 7.44 4.003 0.000 164.606 $1,224.67
17-Oct-90 0.041135 D 7.49 4.049 0.904 165.510 $1,239.67
31-Oct-90 7.59 4.088 0.000 165.510 $1,256.22
16-Nov-90 0.076000 G 7.68 4.132 1.638 167.148 $1,283.70
16-Nov-90 0.043484 D 7.68 4.132 0.937 168.085 $1,290.89
30-Nov-90 7.70 4.170 0.000 168.085 $1,294.25
17-Dec-90 0.038990 D 7.67 4.216 0.854 168.939 $1,295.76
31-Dec-90 7.66 4.255 0.000 168.939 $1,294.07
17-Jan-91 0.042003 D 7.68 4.301 0.924 169.863 $1,304.55
31-Jan-91 7.73 4.340 0.000 169.863 $1,313.04
15-Feb-91 0.043893 D 7.82 4.381 0.953 170.816 $1,335.78
28-Feb-91 7.72 4.416 0.000 170.816 $1,318.70
15-Mar-91 0.036888 D 7.70 4.458 0.818 171.634 $1,321.58
31-Mar-91 7.67 4.501 0.000 171.634 $1,316.43
17-Apr-91 0.041241 D 7.77 4.548 0.911 172.545 $1,340.67
30-Apr-91 7.76 4.584 0.000 172.545 $1,338.95
16-May-91 0.042548 D 7.78 4.627 0.944 173.489 $1,349.74
31-May-91 7.78 4.668 0.000 173.489 $1,349.74
17-Jun-91 0.038589 D 7.66 4.715 0.874 174.363 $1,335.62
30-Jun-91 7.71 4.751 0.000 174.363 $1,344.34
17-Jul-91 0.039946 D 7.75 4.797 0.899 175.262 $1,358.28
31-Jul-91 7.78 4.836 0.000 175.262 $1,363.54
16-Aug-91 0.042517 D 7.82 4.879 0.953 176.215 $1,378.00
31-Aug-91 7.83 4.921 0.000 176.215 $1,379.76
17-Sep-91 0.039141 D 7.86 4.967 0.878 177.093 $1,391.95
30-Sep-91 7.90 5.003 0.000 177.093 $1,399.03
17-Oct-91 0.038751 D 7.91 5.049 0.868 177.961 $1,407.67
31-Oct-91 7.91 5.088 0.000 177.961 $1,407.67
15-Nov-91 0.039814 D 7.90 5.129 0.897 178.858 $1,412.98
15-Nov-91 0.026000 G 7.90 5.129 0.586 179.444 $1,417.61
30-Nov-91 7.85 5.170 0.000 179.444 $1,408.64
17-Dec-91 0.038443 D 7.88 5.216 0.875 180.319 $1,420.91
31-Dec-91 8.00 5.255 0.000 180.319 $1,442.55
17-Jan-92 0.043359 D 7.97 5.301 0.981 181.300 $1,444.96
31-Jan-92 7.92 5.340 0.000 181.300 $1,435.90
14-Feb-92 0.038492 D 7.87 5.378 0.887 182.187 $1,433.81
29-Feb-92 7.91 5.419 0.000 182.187 $1,441.10
17-Mar-92 0.038590 D 7.82 5.466 0.899 183.086 $1,431.73
31-Mar-92 7.86 5.504 0.000 183.086 $1,439.06
16-Apr-92 0.043434 D 7.92 5.548 1.004 184.090 $1,457.99
30-Apr-92 7.88 5.586 0.000 184.090 $1,450.63
15-May-92 0.036848 D 7.96 5.627 0.852 184.942 $1,472.14
31-May-92 7.95 5.671 0.000 184.942 $1,470.29
17-Jun-92 0.040996 D 7.97 5.718 0.951 185.893 $1,481.57
30-Jun-92 8.05 5.753 0.000 185.893 $1,496.44
17-Jul-92 0.042584 D 8.20 5.800 0.965 186.858 $1,532.24
31-Jul-92 8.32 5.838 0.000 186.858 $1,554.66
17-Aug-92 0.038194 D 8.19 5.885 0.871 187.729 $1,537.50
31-Aug-92 8.10 5.923 0.000 187.729 $1,520.60
17-Sep-92 0.041352 D 8.10 5.970 0.958 188.687 $1,528.36
30-Sep-92 8.07 6.005 0.000 188.687 $1,522.70
16-Oct-92 0.039393 D 8.00 6.049 0.929 189.616 $1,516.93
30-Oct-92 7.85 6.088 0.000 189.616 $1,488.49
17-Nov-92 0.127000 G 7.89 6.137 3.052 192.668 $1,520.15
17-Nov-92 0.038664 D 7.89 6.137 0.929 193.597 $1,527.48
30-Nov-92 7.91 6.173 0.000 193.597 $1,531.35
17-Dec-92 0.038283 D 7.93 6.219 0.935 194.532 $1,542.64
31-Dec-92 0.000000 8.00 6.258 0.000 194.532 $1,556.26
15-Jan-93 0.039346 D 8.00 6.299 0.957 195.489 $1,563.91
29-Jan-93 8.04 6.337 0.000 195.489 $1,571.73
17-Feb-93 0.038871 D 8.17 6.389 0.930 196.419 $1,604.74
26-Feb-93 8.39 6.414 0.000 196.419 $1,647.96
17-Mar-93 0.034590 D 8.33 6.466 0.816 197.235 $1,642.97
31-Mar-93 0.000000 8.29 6.504 0.000 197.235 $1,635.08
16-Apr-93 0.040469 D 8.40 6.548 0.950 198.185 $1,664.75
30-Apr-93 8.37 6.586 0.000 198.185 $1,658.81
17-May-93 0.035098 D 8.38 6.633 0.830 199.015 $1,667.75
31-May-93 8.36 6.671 0.000 199.015 $1,663.77
17-Jun-93 0.037438 D 8.43 6.718 0.884 199.899 $1,685.15
30-Jun-93 0.000000 8.50 6.753 0.000 199.899 $1,699.14
16-Jul-93 0.037941 D 8.53 6.797 0.889 200.788 $1,712.72
30-Jul-93 8.45 6.836 0.000 200.788 $1,696.66
17-Aug-93 0.037178 D 8.61 6.885 0.867 201.655 $1,736.25
31-Aug-93 0.000000 8.66 6.923 0.000 201.655 $1,746.33
17-Sep-93 0.039647 D 8.75 6.970 0.914 202.569 $1,772.48
30-Sep-93 0.000000 8.72 7.005 0.000 202.569 $1,766.40
15-Oct-93 0.033308 D 8.84 7.047 0.763 203.332 $1,797.45
29-Oct-93 8.70 7.085 0.000 203.332 $1,768.99
17-Nov-93 0.038478 D 8.05 7.137 0.972 204.304 $1,644.65
17-Nov-93 0.499000 G 8.05 7.137 12.604 216.908 $1,746.11
30-Nov-93 0.000000 8.00 7.173 0.000 216.908 $1,735.26
17-Dec-93 0.035934 D 8.11 7.219 0.961 217.869 $1,766.92
31-Dec-93 8.15 7.258 0.000 217.869 $1,775.63
17-Jan-94 0.032860 D 8.15 7.304 0.878 218.747 $1,782.79
31-Jan-94 0.000000 8.22 7.342 0.000 218.747 $1,798.10
17-Feb-94 0.035133 D 8.04 7.389 0.956 219.703 $1,766.41
28-Feb-94 0.000000 7.87 7.419 0.000 219.703 $1,729.06
17-Mar-94 0.030435 D 7.73 7.466 0.865 220.568 $1,704.99
31-Mar-94 0.000000 7.39 7.504 0.000 220.568 $1,630.00
15-Apr-94 0.035056 D 7.39 7.545 1.046 221.614 $1,637.73
29-Apr-94 0.000000 7.40 7.584 0.000 221.614 $1,639.94
17-May-94 0.033901 D 7.39 7.633 1.017 222.631 $1,645.24
31-May-94 7.44 7.671 0.000 222.631 $1,656.37
17-Jun-94 0.036722 D 7.51 7.718 1.089 223.720 $1,680.14
30-Jun-94 0.000000 7.33 7.753 0.000 223.720 $1,639.87
15-Jul-94 0.030820 D 7.40 7.795 0.932 224.652 $1,662.42
29-Jul-94 0.000000 7.47 7.833 0.000 224.652 $1,678.15
17-Aug-94 0.034170 D 7.43 7.885 1.033 225.685 $1,676.84
31-Aug-94 0.000000 7.43 7.923 0.000 225.685 $1,676.84
16-Sep-94 0.034769 D 7.26 7.967 1.081 226.766 $1,646.32
30-Sep-94 0.000000 7.18 8.005 0.000 226.766 $1,628.18
17-Oct-94 0.031928 D 7.17 8.052 1.010 227.776 $1,633.15
31-Oct-94 6.96 8.090 0.000 227.776 $1,585.32
17-Nov-94 0.034002 D 6.61 8.137 1.172 228.948 $1,513.35
30-Nov-94 0.000000 6.73 8.173 0.000 228.948 $1,540.82
16-Dec-94 0.033919 D 6.91 8.216 1.124 230.072 $1,589.80
31-Dec-94 0.000000 6.95 8.258 0.000 230.072 $1,599.00
17-Jan-95 0.033207 D 7.07 8.304 1.081 231.153 $1,634.25
31-Jan-95 0.000000 7.13 8.342 0.000 231.153 $1,648.12
17-Feb-95 0.037288 D 7.29 8.389 1.182 232.335 $1,693.72
28-Feb-95 0.000000 7.38 8.419 0.000 232.335 $1,714.63
17-Mar-95 0.029960 D 7.41 8.466 0.939 233.274 $1,728.56
31-Mar-95 0.000000 7.42 8.504 0.000 233.274 $1,730.89
17-Apr-95 0.032060 D 7.51 8.551 0.996 234.270 $1,759.37
28-Apr-95 0.000000 7.39 8.581 0.000 234.270 $1,731.26
17-May-95 0.033102 D 7.61 8.633 1.019 235.289 $1,790.55
31-May-95 0.000000 7.66 8.671 0.000 235.289 $1,802.31
16-Jun-95 0.034838 D 7.55 8.715 1.086 236.375 $1,784.63
30-Jun-95 0.000000 7.51 8.753 0.000 236.375 $1,775.18
17-Jul-95 0.031429 D 7.61 8.800 0.976 237.351 $1,806.24
31-Jul-95 0.000000 7.50 8.838 0.000 237.351 $1,780.13
17-Aug-95 0.033669 D 7.40 8.885 1.080 238.431 $1,764.39
31-Aug-95 0.000000 7.55 8.923 0.000 238.431 $1,800.15
15-Sep-95 0.032894 D 7.65 8.964 1.025 239.456 $1,831.84
30-Sep-95 7.58 9.005 0.000 239.456 $1,815.08
17-Oct-95 0.031805 D 7.72 9.052 0.987 240.443 $1,856.22
31-Oct-95 0.000000 7.70 9.090 0.000 240.443 $1,851.41
17-Nov-95 0.035565 D 7.77 9.137 1.101 241.544 $1,876.80
30-Nov-95 0.000000 7.85 9.173 0.000 241.544 $1,896.12
15-Dec-95 0.030452 D 7.85 9.214 0.937 242.481 $1,903.48
29-Dec-95 0.000000 7.92 9.252 0.000 242.481 $1,920.45
31-Dec-95 0.000000 7.92 9.258 0.000 242.481 $1,920.45
17-Jan-96 0.033462 D 7.89 9.304 1.028 243.509 $1,921.29
31-Jan-96 0.000000 7.92 9.342 0.000 243.509 $1,928.59
16-Feb-96 0.036573 D 7.93 9.386 1.123 244.632 $1,939.93
29-Feb-96 0.000000 7.82 9.422 0.000 244.632 $1,913.02
15-Mar-96 0.029674 D 7.55 9.463 0.961 245.593 $1,854.23
29-Mar-96 0.000000 7.65 9.501 0.000 245.593 $1,878.79
31-Mar-96 0.000000 7.65 9.507 0.000 245.593 $1,878.79
17-Apr-96 0.034063 D 7.59 9.553 1.102 246.695 $1,872.42
30-Apr-96 0.000000 7.57 9.589 0.000 246.695 $1,867.48
17-May-96 0.035500 D 7.63 9.636 1.148 247.843 $1,891.04
31-May-96 0.000000 D 7.55 9.674 0.000 247.843 $1,871.21
17-Jun-96 0.031451 D 7.51 9.721 1.038 248.881 $1,869.10
30-Jun-96 0.000000 7.60 9.756 0.000 248.881 $1,891.50
17-Jul-96 0.032601 D 7.59 9.803 1.069 249.950 $1,897.12
31-Jul-96 7.65 9.841 0.000 249.950 $1,912.12
16-Aug-96 0.034735 D 7.73 9.885 1.123 251.073 $1,940.79
31-Aug-96 7.61 9.926 0.000 251.073 $1,910.67
17-Sep-96 0.032902 D 7.66 9.973 1.078 252.151 $1,931.48
30-Sep-96 0.000000 7.70 10.008 0.000 252.151 $1,941.56
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 6.86%
N = NUMBER OF YEARS - 10
ERV = ENDING REDEEMABLE VALUE $1,941.56
TOTAL RETURN FOR PERIOD 94.16%
<PAGE>
SELIGMAN NATIONAL MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQUALS $8.200
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.20 121.951 121.951 $1,000.00
17-Feb-94 0.015495 D 8.04 0.044 0.235 122.186 $982.38
28-Feb-94 7.87 0.074 0.000 122.186 $961.60
17-Mar-94 0.024649 D 7.73 0.121 0.390 122.576 $947.51
31-Mar-94 0.000000 7.38 0.159 0.000 122.576 $904.61
15-Apr-94 0.028887 D 7.39 0.200 0.479 123.055 $909.38
29-Apr-94 0.000000 7.39 0.238 0.000 123.055 $909.38
17-May-94 0.027971 D 7.39 0.288 0.466 123.521 $912.82
31-May-94 7.44 0.326 0.000 123.521 $919.00
17-Jun-94 0.030060 D 7.51 0.373 0.494 124.015 $931.35
30-Jun-94 0.000000 7.32 0.408 0.000 124.015 $907.79
15-Jul-94 0.025295 D 7.39 0.449 0.424 124.439 $919.60
29-Jul-94 0.000000 7.47 0.488 0.000 124.439 $929.56
17-Aug-94 0.028033 D 7.43 0.540 0.470 124.909 $928.07
31-Aug-94 0.000000 7.42 0.578 0.000 124.909 $926.82
16-Sep-94 0.028474 D 7.26 0.622 0.490 125.399 $910.40
30-Sep-94 0.000000 7.18 0.660 0.000 125.399 $900.36
17-Oct-94 0.026372 D 7.17 0.707 0.461 125.860 $902.42
31-Oct-94 6.96 0.745 0.000 125.860 $875.99
17-Nov-94 0.028294 D 6.61 0.792 0.539 126.399 $835.50
30-Nov-94 0.000000 6.73 0.827 0.000 126.399 $850.67
16-Dec-94 0.028392 D 6.90 0.871 0.520 126.919 $875.74
31-Dec-94 0.000000 6.94 0.912 0.000 126.919 $880.82
17-Jan-95 0.027444 D 7.07 0.959 0.493 127.412 $900.80
31-Jan-95 0.000000 7.13 0.997 0.000 127.412 $908.45
17-Feb-95 0.030644 D 7.29 1.044 0.536 127.948 $932.74
28-Feb-95 0.000000 7.38 1.074 0.000 127.948 $944.26
17-Mar-95 0.024603 D 7.41 1.121 0.425 128.373 $951.24
31-Mar-95 0.000000 7.42 1.159 0.000 128.373 $952.53
17-Apr-95 0.025401 D 7.51 1.205 0.434 128.807 $967.34
28-Apr-95 0.000000 7.38 1.236 0.000 128.807 $950.60
17-May-95 0.024867 D 7.61 1.288 0.421 129.228 $983.43
31-May-95 0.000000 7.66 1.326 0.000 129.228 $989.89
16-Jun-95 0.026311 D 7.54 1.370 0.451 129.679 $977.78
30-Jun-95 0.000000 7.52 1.408 0.000 129.679 $975.19
17-Jul-95 0.024595 D 7.60 1.455 0.420 130.099 $988.75
31-Jul-95 0.000000 7.50 1.493 0.000 130.099 $975.74
17-Aug-95 0.026748 D 7.39 1.540 0.471 130.570 $964.91
31-Aug-95 0.000000 7.54 1.578 0.000 130.570 $984.50
15-Sep-95 0.027094 D 7.64 1.619 0.463 131.033 $1,001.09
30-Sep-95 7.57 1.660 0.000 131.033 $991.92
17-Oct-95 0.026168 D 7.71 1.707 0.445 131.478 $1,013.70
31-Oct-95 0.000000 7.69 1.745 0.000 131.478 $1,011.07
17-Nov-95 0.029296 D 7.77 1.792 0.496 131.974 $1,025.44
30-Nov-95 0.000000 7.84 1.827 0.000 131.974 $1,034.68
15-Dec-95 0.025024 D 7.84 1.868 0.421 132.395 $1,037.98
29-Dec-95 0.000000 7.92 1.907 0.000 132.395 $1,048.57
31-Dec-95 0.000000 7.92 1.912 0.000 132.395 $1,048.57
17-Jan-96 0.027359 D 7.89 1.959 0.459 132.854 $1,048.22
31-Jan-96 0.000000 7.91 1.997 0.000 132.854 $1,050.88
16-Feb-96 0.029666 D 7.93 2.041 0.497 133.351 $1,057.47
29-Feb-96 0.000000 7.81 2.077 0.000 133.351 $1,041.47
15-Mar-96 0.024350 D 7.55 2.118 0.430 133.781 $1,010.05
29-Mar-96 0.000000 7.64 2.156 0.000 133.781 $1,022.09
31-Mar-96 0.000000 7.64 2.162 0.000 133.781 $1,022.09
03-Apr-96 0.000000 7.57 2.170 0.000 133.781 $1,012.72
17-Apr-96 0.028046 D 7.59 2.208 0.494 134.275 $1,019.15
17-May-96 0.029365 D 7.62 2.290 0.517 134.792 $1,027.12
31-May-96 0.000000 D 7.55 2.329 0.000 134.792 $1,017.68
17-Jun-96 0.025950 D 7.51 2.375 0.466 135.258 $1,015.79
30-Jun-96 0.000000 7.60 2.411 0.000 135.258 $1,027.96
17-Jul-96 0.026840 D 7.58 2.458 0.479 135.737 $1,028.89
31-Jul-96 7.64 2.496 0.000 135.737 $1,037.03
17-Aug-96 0.028458 D 7.73 2.542 0.500 136.237 $1,053.11
31-Aug-96 7.60 2.581 0.000 136.237 $1,035.40
17-Sep-96 0.027125 D 7.65 2.627 0.483 136.720 $1,045.91
30-Sep-96 0.000000 7.70 2.663 0.000 136.720 $1,052.74
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 1.95%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VALUE $1,052.74
TOTAL RETURN FOR PERIOD 5.27%
<PAGE>
SELIGMAN COLORADO MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $7.720
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 7.72 129.534 129.534 $1,000.00
17-Feb-94 0.014212 D 7.62 0.044 0.242 129.776 $988.89
28-Feb-94 0.000000 7.51 0.074 0.000 129.776 $974.62
17-Mar-94 0.023394 D 7.39 0.121 0.411 130.187 $962.08
31-Mar-94 0.000000 7.20 0.159 0.000 130.187 $937.35
15-Apr-94 0.025084 D 7.19 0.200 0.454 130.641 $939.31
29-Apr-94 0.000000 7.19 0.238 0.000 130.641 $939.31
17-May-94 0.024801 D 7.20 0.288 0.450 131.091 $943.86
31-May-94 7.24 0.326 0.000 131.091 $949.10
17-Jun-94 0.026651 D 7.27 0.373 0.481 131.572 $956.53
30-Jun-94 0.000000 7.17 0.408 0.000 131.572 $943.37
15-Jul-94 0.022949 D 7.21 0.449 0.419 131.991 $951.66
29-Jul-94 0.000000 7.27 0.488 0.000 131.991 $959.57
17-Aug-94 0.026036 D 7.24 0.540 0.475 132.466 $959.05
31-Aug-94 0.000000 7.24 0.578 0.000 132.466 $959.05
16-Sep-94 0.027073 D 7.14 0.622 0.502 132.968 $949.39
30-Sep-94 0.000000 7.09 0.660 0.000 132.968 $942.74
17-Oct-94 0.024680 D 7.08 0.707 0.464 133.432 $944.70
31-Oct-94 0.000000 6.92 0.745 0.000 133.432 $923.35
17-Nov-94 0.026713 D 6.64 0.792 0.537 133.969 $889.55
30-Nov-94 0.000000 6.76 0.827 0.000 133.969 $905.63
16-Dec-94 0.027480 D 6.88 0.871 0.535 134.504 $925.39
31-Dec-94 0.000000 6.90 0.912 0.000 134.504 $928.08
17-Jan-95 0.026068 D 6.99 0.959 0.502 135.006 $943.69
31-Jan-95 0.000000 7.07 0.997 0.000 135.006 $954.49
17-Feb-95 0.028788 D 7.17 1.044 0.542 135.548 $971.88
28-Feb-95 0.000000 7.23 1.074 0.000 135.548 $980.01
17-Mar-95 0.023046 D 7.24 1.121 0.431 135.979 $984.49
31-Mar-95 0.000000 7.23 1.159 0.000 135.979 $983.13
17-Apr-95 0.023525 D 7.28 1.205 0.439 136.418 $993.12
28-Apr-95 0.000000 7.20 1.236 0.000 136.418 $982.21
17-May-95 0.023437 D 7.34 1.288 0.436 136.854 $1,004.51
31-May-95 0.000000 7.37 1.326 0.000 136.854 $1,008.61
16-Jun-95 0.024732 D 7.31 1.370 0.463 137.317 $1,003.79
30-Jun-95 0.000000 7.27 1.408 0.000 137.317 $998.29
17-Jul-95 0.022689 D 7.32 1.455 0.426 137.743 $1,008.28
31-Jul-95 0.000000 7.27 1.493 0.000 137.743 $1,001.39
17-Aug-95 0.025798 D 7.18 1.540 0.495 138.238 $992.55
31-Aug-95 0.000000 7.28 1.578 0.000 138.238 $1,006.37
15-Sep-95 0.025132 D 7.34 1.619 0.473 138.711 $1,018.14
30-Sep-95 7.29 1.660 0.000 138.711 $1,011.20
17-Oct-95 0.024407 D 7.36 1.707 0.460 139.171 $1,024.30
31-Oct-95 0.000000 7.35 1.745 0.000 139.171 $1,022.91
17-Nov-95 0.026914 D 7.37 1.792 0.508 139.679 $1,029.43
30-Nov-95 0.000000 7.41 1.827 0.000 139.679 $1,035.02
15-Dec-95 0.023301 D 7.41 1.868 0.439 140.118 $1,038.27
29-Dec-95 0.000000 7.47 1.907 0.000 140.118 $1,046.68
31-Dec-95 0.000000 7.47 1.912 0.000 140.118 $1,046.68
17-Jan-96 0.025872 D 7.45 1.959 0.487 140.605 $1,047.51
31-Jan-96 0.000000 7.46 1.997 0.000 140.605 $1,048.91
16-Feb-96 0.027323 D 7.48 2.041 0.514 141.119 $1,055.57
29-Feb-96 0.000000 7.42 2.077 0.000 141.119 $1,047.10
15-Mar-96 0.022469 D 7.23 2.118 0.439 141.558 $1,023.46
29-Mar-96 0.000000 7.28 2.156 0.000 141.558 $1,030.54
31-Mar-96 0.000000 7.28 2.162 0.000 141.558 $1,030.54
17-Apr-96 0.026015 D 7.25 2.208 0.508 142.066 $1,029.98
30-Apr-96 0.000000 7.23 2.244 0.000 142.066 $1,027.14
17-May-96 0.026970 D 7.28 2.290 0.526 142.592 $1,038.07
31-May-96 0.000000 D 7.22 2.329 0.000 142.592 $1,029.51
17-Jun-96 0.024360 D 7.19 2.375 0.483 143.075 $1,028.71
30-Jun-96 0.000000 7.26 2.411 0.000 143.075 $1,038.72
17-Jul-96 0.025249 D 7.24 2.458 0.499 143.574 $1,039.48
31-Jul-96 0.000000 7.24 2.496 0.000 143.574 $1,039.48
16-Aug-96 0.026628 D 7.29 2.540 0.524 144.098 $1,050.47
31-Aug-96 0.000000 7.21 2.581 0.000 144.098 $1,038.95
17-Sep-96 0.024805 D 7.24 2.627 0.494 144.592 $1,046.85
30-Sep-96 0.000000 7.27 2.663 0.000 144.592 $1,051.18
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 1.89%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,051.18
TOTAL RETURN FOR PERIOD 5.12%
<PAGE>
SELIGMAN GEORGIA MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.330
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.33 120.048 120.048 $1,000.00
17-Feb-94 0.015635 D 8.20 0.044 0.229 120.277 $986.27
28-Feb-94 0.000000 8.04 0.074 0.000 120.277 $967.03
17-Mar-94 0.025853 D 7.91 0.121 0.393 120.670 $954.50
31-Mar-94 0.000000 7.63 0.159 0.000 120.670 $920.71
15-Apr-94 0.029619 D 7.62 0.200 0.469 121.139 $923.08
17-May-94 0.028156 D 7.62 0.288 0.448 121.587 $926.49
31-May-94 7.69 0.326 0.000 121.587 $935.00
17-Jun-94 0.031157 D 7.74 0.373 0.489 122.076 $944.87
30-Jun-94 0.000000 7.57 0.408 0.000 122.076 $924.12
15-Jul-94 0.025964 D 7.65 0.449 0.414 122.490 $937.05
29-Jul-94 0.000000 7.71 0.488 0.000 122.490 $944.40
17-Aug-94 0.028420 D 7.69 0.540 0.453 122.943 $945.43
31-Aug-94 0.000000 7.70 0.578 0.000 122.943 $946.66
16-Sep-94 0.028582 D 7.56 0.622 0.465 123.408 $932.96
30-Sep-94 0.000000 7.49 0.660 0.000 123.408 $924.33
17-Oct-94 0.025831 D 7.49 0.707 0.426 123.834 $927.52
31-Oct-94 0.000000 7.30 0.745 0.000 123.834 $903.99
17-Nov-94 0.029039 D 6.86 0.792 0.524 124.358 $853.10
17-Nov-94 0.103000 CG 6.86 0.792 1.859 126.217 $865.85
30-Nov-94 0.000000 6.99 0.827 0.000 126.217 $882.26
16-Dec-94 0.028831 D 7.13 0.871 0.510 126.727 $903.56
31-Dec-94 0.000000 7.16 0.912 0.000 126.727 $907.37
17-Jan-95 0.026634 D 7.32 0.959 0.461 127.188 $931.02
31-Jan-95 0.000000 7.40 0.997 0.000 127.188 $941.19
17-Feb-95 0.030143 D 7.53 1.044 0.509 127.697 $961.56
28-Feb-95 0.000000 7.59 1.074 0.000 127.697 $969.22
17-Mar-95 0.023921 D 7.63 1.121 0.400 128.097 $977.38
31-Mar-95 0.000000 7.61 1.159 0.000 128.097 $974.82
17-Apr-95 0.025801 D 7.67 1.205 0.431 128.528 $985.81
28-Apr-95 0.000000 7.55 1.236 0.000 128.528 $970.39
17-May-95 0.026440 D 7.78 1.288 0.437 128.965 $1,003.35
31-May-95 0.000000 7.87 1.326 0.000 128.965 $1,014.95
16-Jun-95 0.026837 D 7.77 1.370 0.445 129.410 $1,005.52
30-Jun-95 0.000000 7.73 1.408 0.000 129.410 $1,000.34
17-Jul-95 0.024262 D 7.84 1.455 0.400 129.810 $1,017.71
31-Jul-95 0.000000 7.75 1.493 0.000 129.810 $1,006.03
17-Aug-95 0.027160 D 7.64 1.540 0.461 130.271 $995.27
31-Aug-95 0.000000 7.80 1.578 0.000 130.271 $1,016.11
15-Sep-95 0.026462 D 7.88 1.619 0.437 130.708 $1,029.98
30-Sep-95 7.82 1.660 0.000 130.708 $1,022.14
17-Oct-95 0.025329 D 7.97 1.707 0.415 131.123 $1,045.05
31-Oct-95 0.000000 7.94 1.745 0.000 131.123 $1,041.12
17-Nov-95 0.054000 G 7.95 1.792 0.891 132.014 $1,049.51
17-Nov-95 0.027274 D 7.95 1.792 0.450 132.464 $1,053.09
30-Nov-95 0.000000 8.02 1.827 0.000 132.464 $1,062.36
15-Dec-95 0.023806 D 7.99 1.868 0.395 132.859 $1,061.54
29-Dec-95 0.000000 8.07 1.907 0.000 132.859 $1,072.17
31-Dec-95 0.000000 8.07 1.912 0.000 132.859 $1,072.17
17-Jan-96 0.026262 D 8.04 1.959 0.434 133.293 $1,071.68
31-Jan-96 0.000000 8.07 1.997 0.000 133.293 $1,075.67
16-Feb-96 0.028202 D 8.08 2.041 0.465 133.758 $1,080.76
29-Feb-96 0.000000 7.98 2.077 0.000 133.758 $1,067.39
15-Mar-96 0.023226 D 7.72 2.118 0.402 134.160 $1,035.72
29-Mar-96 0.000000 7.80 2.156 0.000 134.160 $1,046.45
31-Mar-96 0.000000 7.80 2.162 0.000 134.160 $1,046.45
17-Apr-96 0.027028 D 7.75 2.208 0.468 134.628 $1,043.37
30-Apr-96 0.000000 7.73 2.244 0.000 134.628 $1,040.67
17-May-96 0.028280 D 7.78 2.290 0.489 135.117 $1,051.21
31-May-96 0.000000 D 7.71 2.329 0.000 135.117 $1,041.75
17-Jun-96 0.025654 D 7.67 2.375 0.452 135.569 $1,039.81
30-Jun-96 0.000000 7.77 2.411 0.000 135.569 $1,053.37
17-Jul-96 0.026454 D 7.76 2.458 0.462 136.031 $1,055.60
31-Jul-96 0.000000 7.81 2.496 0.000 136.031 $1,062.40
16-Aug-96 0.028194 D 7.90 2.540 0.485 136.516 $1,078.48
31-Aug-96 0.000000 7.77 2.581 0.000 136.516 $1,060.73
17-Sep-96 0.026650 D 7.84 2.627 0.464 136.980 $1,073.92
30-Sep-96 0.000000 7.88 2.663 0.000 136.980 $1,079.40
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.91%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,079.40
TOTAL RETURN FOR PERIOD 7.94%
<PAGE>
SELIGMAN LOUISIANA MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.730
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.73 114.548 114.548 $1,000.00
17-Feb-94 0.016499 D 8.61 0.044 0.220 114.768 $988.15
28-Feb-94 0.000000 8.49 0.074 0.000 114.768 $974.38
17-Mar-94 0.027941 D 8.37 0.121 0.383 115.151 $963.81
31-Mar-94 0.000000 8.12 0.159 0.000 115.151 $935.03
15-Apr-94 0.031492 D 8.11 0.200 0.447 115.598 $937.50
29-Apr-94 0.000000 8.09 0.238 0.000 115.598 $935.19
17-May-94 0.030403 D 8.10 0.288 0.434 116.032 $939.86
31-May-94 0.000000 8.13 0.326 0.000 116.032 $943.34
17-Jun-94 0.033301 D 8.16 0.373 0.474 116.506 $950.69
30-Jun-94 0.000000 8.03 0.408 0.000 116.506 $935.54
15-Jul-94 0.028372 D 8.10 0.449 0.408 116.914 $947.00
29-Jul-94 8.15 0.488 0.000 116.914 $952.85
17-Aug-94 0.030596 D 8.12 0.540 0.441 117.355 $952.92
31-Aug-94 0.000000 8.13 0.578 0.000 117.355 $954.10
16-Sep-94 0.031499 D 8.01 0.622 0.461 117.816 $943.71
30-Sep-94 0.000000 7.94 0.660 0.000 117.816 $935.46
17-Oct-94 0.028238 D 7.91 0.707 0.421 118.237 $935.25
31-Oct-94 0.000000 7.75 0.745 0.000 118.237 $916.34
17-Nov-94 0.140000 CG 7.30 0.792 2.268 120.505 $879.69
17-Nov-94 0.031032 D 7.30 0.792 0.503 121.008 $883.36
30-Nov-94 0.000000 7.43 0.827 0.000 121.008 $899.09
16-Dec-94 0.030639 D 7.56 0.871 0.490 121.498 $918.52
31-Dec-94 0.000000 7.59 0.912 0.000 121.498 $922.17
17-Jan-95 0.029188 D 7.70 0.959 0.461 121.959 $939.08
31-Jan-95 0.000000 7.78 0.997 0.000 121.959 $948.84
17-Feb-95 0.032564 D 7.89 1.044 0.503 122.462 $966.23
28-Feb-95 0.000000 7.96 1.074 0.000 122.462 $974.80
17-Mar-95 0.025988 D 7.99 1.121 0.398 122.860 $981.65
31-Mar-95 0.000000 7.98 1.159 0.000 122.860 $980.42
17-Apr-95 0.027490 D 8.06 1.205 0.419 123.279 $993.63
28-Apr-95 0.000000 7.95 1.236 0.000 123.279 $980.07
17-May-95 0.028067 D 8.13 1.288 0.426 123.705 $1,005.72
31-May-95 0.000000 8.18 1.326 0.000 123.705 $1,011.91
16-Jun-95 0.029108 D 8.08 1.370 0.446 124.151 $1,003.14
30-Jun-95 0.000000 8.04 1.408 0.000 124.151 $998.17
17-Jul-95 0.026172 D 8.11 1.455 0.401 124.552 $1,010.12
31-Jul-95 0.000000 8.04 1.493 0.000 124.552 $1,001.40
17-Aug-95 0.029451 D 7.96 1.540 0.461 125.013 $995.10
31-Aug-95 0.000000 8.11 1.578 0.000 125.013 $1,013.86
15-Sep-95 0.029631 D 8.21 1.619 0.451 125.464 $1,030.06
30-Sep-95 8.14 1.660 0.000 125.464 $1,021.28
17-Oct-95 0.028309 D 8.24 1.707 0.431 125.895 $1,037.37
31-Oct-95 0.000000 8.22 1.745 0.000 125.895 $1,034.86
17-Nov-95 0.062000 G 8.22 1.792 0.950 126.845 $1,042.67
17-Nov-95 0.031499 D 8.22 1.792 0.482 127.327 $1,046.63
30-Nov-95 0.000000 8.29 1.827 0.000 127.327 $1,055.54
15-Dec-95 0.026685 D 8.29 1.868 0.410 127.737 $1,058.94
29-Dec-95 0.000000 8.37 1.907 0.000 127.737 $1,069.16
31-Dec-95 0.000000 8.37 1.912 0.000 127.737 $1,069.16
17-Jan-96 0.029905 D 8.35 1.959 0.457 128.194 $1,070.42
31-Jan-96 0.000000 8.37 1.997 0.000 128.194 $1,072.98
16-Feb-96 0.031238 D 8.43 2.041 0.475 128.669 $1,084.68
29-Feb-96 0.000000 8.33 2.077 0.000 128.669 $1,071.81
15-Mar-96 0.025603 D 8.08 2.118 0.408 129.077 $1,042.94
29-Mar-96 0.000000 8.14 2.156 0.000 129.077 $1,050.69
31-Mar-96 0.000000 8.14 2.162 0.000 129.077 $1,050.69
17-Apr-96 0.029638 D 8.08 2.208 0.473 129.550 $1,046.76
30-Apr-96 0.000000 8.06 2.244 0.000 129.550 $1,044.17
17-May-96 0.030584 D 8.09 2.290 0.490 130.040 $1,052.02
31-May-96 0.000000 D 8.03 2.329 0.000 130.040 $1,044.22
17-Jun-96 0.027015 D 7.97 2.375 0.441 130.481 $1,039.93
30-Jun-96 0.000000 8.06 2.411 0.000 130.481 $1,051.68
17-Jul-96 0.027973 D 8.05 2.458 0.453 130.934 $1,054.02
31-Jul-96 0.000000 8.09 2.496 0.000 130.934 $1,059.26
16-Aug-96 0.029896 D 8.18 2.540 0.479 131.413 $1,074.96
31-Aug-96 0.000000 8.08 2.581 0.000 131.413 $1,061.82
17-Sep-96 0.028486 D 8.13 2.627 0.460 131.873 $1,072.13
30-Sep-96 0.000000 8.16 2.663 0.000 131.873 $1,076.08
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.79%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,076.08
TOTAL RETURN FOR PERIOD 7.61%
<PAGE>
SELIGMAN MARYLAND MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.460
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.46 118.203 118.203 $1,000.00
17-Feb-94 0.015603 D 8.36 0.044 0.221 118.424 $990.02
28-Feb-94 0.000000 8.25 0.074 0.000 118.424 $977.00
17-Mar-94 0.026231 D 8.12 0.121 0.383 118.807 $964.71
31-Mar-94 0.000000 7.86 0.159 0.000 118.807 $933.82
15-Apr-94 0.029415 D 7.84 0.200 0.446 119.253 $934.94
29-Apr-94 0.000000 7.83 0.238 0.000 119.253 $933.75
17-May-94 0.028896 D 7.84 0.288 0.440 119.693 $938.39
31-May-94 7.89 0.326 0.000 119.693 $944.38
17-Jun-94 0.031339 D 7.94 0.373 0.472 120.165 $954.11
30-Jun-94 0.000000 7.81 0.408 0.000 120.165 $938.49
15-Jul-94 0.026583 D 7.87 0.449 0.406 120.571 $948.89
29-Jul-94 0.000000 7.93 0.488 0.000 120.571 $956.13
17-Aug-94 0.029248 D 7.89 0.540 0.447 121.018 $954.83
31-Aug-94 0.000000 7.90 0.578 0.000 121.018 $956.04
16-Sep-94 0.029944 D 7.77 0.622 0.466 121.484 $943.93
30-Sep-94 0.000000 7.72 0.660 0.000 121.484 $937.86
17-Oct-94 0.027007 D 7.72 0.707 0.425 121.909 $941.14
31-Oct-94 0.000000 7.53 0.745 0.000 121.909 $917.97
17-Nov-94 0.029894 D 7.09 0.792 0.514 122.423 $867.98
17-Nov-94 0.133000 CG 7.09 0.792 2.287 124.710 $884.19
30-Nov-94 0.000000 7.21 0.827 0.000 124.710 $899.16
16-Dec-94 0.029464 D 7.35 0.871 0.500 125.210 $920.29
31-Dec-94 0.000000 7.40 0.912 0.000 125.210 $926.55
17-Jan-95 0.027056 D 7.50 0.959 0.452 125.662 $942.47
31-Jan-95 0.000000 7.58 0.997 0.000 125.662 $952.52
17-Feb-95 0.030210 D 7.71 1.044 0.492 126.154 $972.65
28-Feb-95 0.000000 7.78 1.074 0.000 126.154 $981.48
17-Mar-95 0.024655 D 7.81 1.121 0.398 126.552 $988.37
31-Mar-95 0.000000 7.81 1.159 0.000 126.552 $988.37
17-Apr-95 0.026145 D 7.88 1.205 0.420 126.972 $1,000.54
28-Apr-95 0.000000 7.77 1.236 0.000 126.972 $986.57
17-May-95 0.026664 D 7.96 1.288 0.425 127.397 $1,014.08
31-May-95 0.000000 8.01 1.326 0.000 127.397 $1,020.45
16-Jun-95 0.027431 D 7.92 1.370 0.441 127.838 $1,012.48
30-Jun-95 0.000000 7.88 1.408 0.000 127.838 $1,007.36
17-Jul-95 0.025082 D 7.98 1.455 0.402 128.240 $1,023.36
31-Jul-95 0.000000 7.91 1.493 0.000 128.240 $1,014.38
17-Aug-95 0.028352 D 7.82 1.540 0.465 128.705 $1,006.47
31-Aug-95 0.000000 7.96 1.578 0.000 128.705 $1,024.49
15-Sep-95 0.027511 D 8.04 1.619 0.440 129.145 $1,038.33
30-Sep-95 7.97 1.660 0.000 129.145 $1,029.29
17-Oct-95 0.026088 D 8.07 1.707 0.417 129.562 $1,045.57
31-Oct-95 8.04 1.745 0.000 129.562 $1,041.68
17-Nov-95 0.034000 G 8.07 1.792 0.546 130.108 $1,049.97
17-Nov-95 0.029366 D 8.07 1.792 0.471 130.579 $1,053.77
30-Nov-95 0.000000 8.13 1.827 0.000 130.579 $1,061.61
15-Dec-95 0.025027 D 8.10 1.868 0.403 130.982 $1,060.95
29-Dec-95 0.000000 8.18 1.907 0.000 130.982 $1,071.43
31-Dec-95 0.000000 8.18 1.912 0.000 130.982 $1,071.43
17-Jan-96 0.027778 D 8.15 1.959 0.446 131.428 $1,071.14
31-Jan-96 0.000000 8.17 1.997 0.000 131.428 $1,073.77
16-Feb-96 0.029830 D 8.19 2.041 0.479 131.907 $1,080.32
29-Feb-96 0.000000 8.11 2.077 0.000 131.907 $1,069.77
15-Mar-96 0.024583 D 7.89 2.118 0.411 132.318 $1,043.99
29-Mar-96 0.000000 7.94 2.156 0.000 132.318 $1,050.60
31-Mar-96 0.000000 7.94 2.162 0.000 132.318 $1,050.60
17-Apr-96 0.028268 D 7.89 2.208 0.474 132.792 $1,047.73
30-Apr-96 0.000000 7.88 2.244 0.000 132.792 $1,046.40
17-May-96 0.029025 D 7.93 2.290 0.486 133.278 $1,056.89
31-May-96 0.000000 D 7.86 2.329 0.000 133.278 $1,047.57
17-Jun-96 0.026135 D 7.83 2.375 0.445 133.723 $1,047.05
30-Jun-96 0.000000 7.92 2.411 0.000 133.723 $1,059.09
17-Jul-96 0.027737 D 7.91 2.458 0.469 134.192 $1,061.46
31-Jul-96 0.000000 7.96 2.496 0.000 134.192 $1,068.17
16-Aug-96 0.029069 D 8.02 2.540 0.486 134.678 $1,080.12
31-Aug-96 0.000000 7.91 2.581 0.000 134.678 $1,065.30
17-Sep-96 0.027496 D 7.97 2.627 0.465 135.143 $1,077.09
30-Sep-96 0.000000 7.99 2.663 0.000 135.143 $1,079.79
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.92%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,079.79
TOTAL RETURN FOR PERIOD 7.98%
<PAGE>
SELIGMAN MASSACHUSETTS MUNICIPAL SERIES CL D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQUAL $8.330
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
---------- -------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.33 120.048 120.048 $1,000.00
17-Feb-94 0.016845 D 8.24 0.044 0.245 120.293 $991.21
28-Feb-94 0.000000 8.14 0.074 0.000 120.293 $979.19
17-Mar-94 0.028094 D 8.02 0.121 0.421 120.714 $968.13
31-Mar-94 0.000000 7.79 0.159 0.000 120.714 $940.36
15-Apr-94 0.031307 D 7.78 0.200 0.486 121.200 $942.94
29-Apr-94 0.000000 7.77 0.238 0.000 121.200 $941.72
17-May-94 0.030493 D 7.78 0.288 0.475 121.675 $946.63
31-May-94 7.82 0.326 0.000 121.675 $951.50
17-Jun-94 0.033127 D 7.86 0.373 0.513 122.188 $960.40
30-Jun-94 0.000000 7.73 0.408 0.000 122.188 $944.51
15-Jul-94 0.027500 D 7.78 0.449 0.432 122.620 $953.98
29-Jul-94 0.000000 7.83 0.488 0.000 122.620 $960.11
17-Aug-94 0.030083 D 7.81 0.540 0.472 123.092 $961.35
31-Aug-94 0.000000 7.81 0.578 0.000 123.092 $961.35
16-Sep-94 0.030453 D 7.70 0.622 0.487 123.579 $951.56
30-Sep-94 0.000000 7.66 0.660 0.000 123.579 $946.62
17-Oct-94 0.028858 D 7.64 0.707 0.467 124.046 $947.71
31-Oct-94 0.000000 7.50 0.745 0.000 124.046 $930.35
17-Nov-94 0.031367 D 7.22 0.792 0.539 124.585 $899.50
17-Nov-94 0.032000 CG 7.22 0.792 0.550 125.135 $903.47
30-Nov-94 0.000000 7.31 0.827 0.000 125.135 $914.74
16-Dec-94 0.030611 D 7.42 0.871 0.516 125.651 $932.33
31-Dec-94 0.000000 7.45 0.912 0.000 125.651 $936.10
17-Jan-95 0.029599 D 7.54 0.959 0.493 126.144 $951.13
31-Jan-95 0.000000 7.60 0.997 0.000 126.144 $958.69
17-Feb-95 0.033291 D 7.72 1.044 0.544 126.688 $978.03
28-Feb-95 0.000000 7.79 1.074 0.000 126.688 $986.90
17-Mar-95 0.026846 D 7.80 1.121 0.436 127.124 $991.57
31-Mar-95 0.000000 7.80 1.159 0.000 127.124 $991.57
17-Apr-95 0.027189 D 7.84 1.205 0.441 127.565 $1,000.11
28-Apr-95 0.000000 7.75 1.236 0.000 127.565 $988.63
17-May-95 0.027294 D 7.92 1.288 0.440 128.005 $1,013.80
31-May-95 0.000000 7.94 1.326 0.000 128.005 $1,016.36
16-Jun-95 0.026499 D 7.86 1.370 0.432 128.437 $1,009.51
30-Jun-95 0.000000 7.83 1.408 0.000 128.437 $1,005.66
17-Jul-95 0.024001 D 7.92 1.455 0.389 128.826 $1,020.30
31-Jul-95 0.000000 7.85 1.493 0.000 128.826 $1,011.28
17-Aug-95 0.030761 D 7.77 1.540 0.510 129.336 $1,004.94
31-Aug-95 0.000000 7.90 1.578 0.000 129.336 $1,021.75
15-Sep-95 0.028614 D 7.96 1.619 0.465 129.801 $1,033.22
30-Sep-95 7.90 1.660 0.000 129.801 $1,025.43
17-Oct-95 0.028003 D 8.01 1.707 0.454 130.255 $1,043.34
31-Oct-95 0.000000 7.97 1.745 0.000 130.255 $1,038.13
17-Nov-95 0.030703 D 7.91 1.792 0.506 130.761 $1,034.32
17-Nov-95 0.107000 G 7.91 1.792 1.762 132.523 $1,048.26
30-Nov-95 0.000000 7.98 1.827 0.000 132.523 $1,057.53
15-Dec-95 0.025661 D 7.96 1.868 0.427 132.950 $1,058.28
29-Dec-95 0.000000 8.03 1.907 0.000 132.950 $1,067.59
31-Dec-95 0.000000 8.03 1.912 0.000 132.950 $1,067.59
17-Jan-96 0.028611 D 8.01 1.959 0.475 133.425 $1,068.73
31-Jan-96 0.000000 8.03 1.997 0.000 133.425 $1,071.40
16-Feb-96 0.030294 D 8.03 2.041 0.503 133.928 $1,075.44
29-Feb-96 0.000000 7.94 2.077 0.000 133.928 $1,063.39
15-Mar-96 0.025328 D 7.71 2.118 0.440 134.368 $1,035.98
29-Mar-96 0.000000 7.79 2.156 0.000 134.368 $1,046.73
31-Mar-96 0.000000 7.79 2.162 0.000 134.368 $1,046.73
17-Apr-96 0.028344 D 7.73 2.208 0.493 134.861 $1,042.48
30-Apr-96 0.000000 7.71 2.244 0.000 134.861 $1,039.78
17-May-96 0.029332 D 7.76 2.290 0.510 135.371 $1,050.48
31-May-96 0.000000 D 7.70 2.329 0.000 135.371 $1,042.36
17-Jun-96 0.026662 D 7.66 2.375 0.471 135.842 $1,040.55
30-Jun-96 0.000000 7.76 2.411 0.000 135.842 $1,054.13
17-Jul-96 0.027901 D 7.75 2.458 0.489 136.331 $1,056.57
31-Jul-96 0.000000 7.80 2.496 0.000 136.331 $1,063.38
16-Aug-96 0.030083 D 7.87 2.540 0.521 136.852 $1,077.03
31-Aug-96 0.000000 7.75 2.581 0.000 136.852 $1,060.60
17-Sep-96 0.028320 D 7.81 2.627 0.496 137.348 $1,072.69
30-Sep-96 0.000000 7.84 2.663 0.000 137.348 $1,076.81
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN 2.82%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VALUE $1,076.81
TOTAL RETURN FOR PERIOD 7.68%
<PAGE>
SELIGMAN MICHIGAN MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQUALS $9.010
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
---------- -------- --- ---- ------ --------- -------- ----------
01-Feb-94 0.000000 9.01 110.988 110.988 $1,000.00
17-Feb-94 0.017377 D 8.89 0.044 0.217 111.205 $988.61
28-Feb-94 8.78 0.074 0.000 111.205 $976.38
17-Mar-94 0.028899 D 8.65 0.121 0.372 111.577 $965.14
31-Mar-94 0.000000 8.43 0.159 0.000 111.577 $940.59
15-Apr-94 0.032196 D 8.42 0.200 0.427 112.004 $943.07
29-Apr-94 0.000000 8.41 0.238 0.000 112.004 $941.95
17-May-94 0.031515 D 8.42 0.288 0.419 112.423 $946.60
31-May-94 8.46 0.326 0.000 112.423 $951.10
17-Jun-94 0.034426 D 8.51 0.373 0.455 112.878 $960.59
30-Jun-94 0.000000 8.36 0.408 0.000 112.878 $943.66
15-Jul-94 0.029414 D 8.42 0.449 0.394 113.272 $953.75
29-Jul-94 0.000000 8.49 0.488 0.000 113.272 $961.68
17-Aug-94 0.032555 D 8.45 0.540 0.436 113.708 $960.83
31-Aug-94 0.000000 8.46 0.578 0.000 113.708 $961.97
16-Sep-94 0.033369 D 8.34 0.622 0.455 114.163 $952.12
30-Sep-94 0.000000 8.28 0.660 0.000 114.163 $945.27
17-Oct-94 0.029706 D 8.26 0.707 0.411 114.574 $946.38
31-Oct-94 0.000000 8.07 0.745 0.000 114.574 $924.61
17-Nov-94 0.032982 D 7.72 0.792 0.489 115.063 $888.29
17-Nov-94 0.043000 CG 7.72 0.792 0.638 115.701 $893.21
30-Nov-94 0.000000 7.85 0.827 0.000 115.701 $908.25
16-Dec-94 0.033222 D 7.98 0.871 0.482 116.183 $927.14
31-Dec-94 0.000000 8.02 0.912 0.000 116.183 $931.79
17-Jan-95 0.031599 D 8.14 0.959 0.451 116.634 $949.40
31-Jan-95 0.000000 8.23 0.997 0.000 116.634 $959.90
17-Feb-95 0.035404 D 8.33 1.044 0.496 117.130 $975.69
28-Feb-95 0.000000 8.40 1.074 0.000 117.130 $983.89
17-Mar-95 0.027073 D 8.43 1.121 0.376 117.506 $990.58
31-Mar-95 8.42 1.159 0.000 117.506 $989.40
17-Apr-95 0.028940 D 8.48 1.205 0.401 117.907 $999.85
28-Apr-95 0.000000 8.38 1.236 0.000 117.907 $988.06
17-May-95 0.029409 D 8.57 1.288 0.405 118.312 $1,013.93
31-May-95 0.000000 8.60 1.326 0.000 118.312 $1,017.48
16-Jun-95 0.029811 D 8.49 1.370 0.415 118.727 $1,007.99
30-Jun-95 0.000000 8.45 1.408 0.000 118.727 $1,003.24
17-Jul-95 0.026238 D 8.54 1.455 0.365 119.092 $1,017.05
31-Jul-95 0.000000 8.47 1.493 0.000 119.092 $1,008.71
17-Aug-95 0.030497 D 8.38 1.540 0.433 119.525 $1,001.62
31-Aug-95 0.000000 8.52 1.578 0.000 119.525 $1,018.35
15-Sep-95 0.030224 D 8.61 1.619 0.420 119.945 $1,032.73
30-Sep-95 8.54 1.660 0.000 119.945 $1,024.33
17-Oct-95 0.029674 D 8.67 1.707 0.411 120.356 $1,043.49
31-Oct-95 0.000000 8.63 1.745 0.000 120.356 $1,038.67
17-Nov-95 0.033466 D 8.54 1.792 0.472 120.828 $1,031.87
17-Nov-95 0.143000 G 8.54 1.792 2.015 122.843 $1,049.08
30-Nov-95 0.000000 8.61 1.827 0.000 122.843 $1,057.68
15-Dec-95 0.028072 D 8.59 1.868 0.401 123.244 $1,058.67
29-Dec-95 0.000000 8.65 1.907 0.000 123.244 $1,066.06
31-Dec-95 0.000000 8.65 1.912 0.000 123.244 $1,066.06
17-Jan-96 0.031233 D 8.63 1.959 0.446 123.690 $1,067.44
31-Jan-96 0.000000 8.66 1.997 0.000 123.690 $1,071.16
16-Feb-96 0.033303 D 8.68 2.041 0.475 124.165 $1,077.75
29-Feb-96 0.000000 8.58 2.077 0.000 124.165 $1,065.34
15-Mar-96 0.027184 D 8.33 2.118 0.405 124.570 $1,037.67
29-Mar-96 0.000000 8.40 2.156 0.000 124.570 $1,046.39
17-Apr-96 0.031479 D 8.35 2.208 0.470 125.040 $1,044.08
30-Apr-96 0.000000 8.32 2.244 0.000 125.040 $1,040.33
17-May-96 0.032419 D 8.36 2.290 0.485 125.525 $1,049.39
31-May-96 0.000000 D 8.30 2.329 0.000 125.525 $1,041.86
17-Jun-96 0.029756 D 8.24 2.375 0.453 125.978 $1,038.06
30-Jun-96 0.000000 8.35 2.411 0.000 125.978 $1,051.92
17-Jul-96 0.030866 D 8.34 2.458 0.466 126.444 $1,054.54
31-Jul-96 0.000000 8.39 2.496 0.000 126.444 $1,060.87
16-Aug-96 0.032686 D 8.46 2.540 0.489 126.933 $1,073.85
31-Aug-96 0.000000 8.35 2.581 0.000 126.933 $1,059.89
17-Sep-96 0.030456 D 8.41 2.627 0.460 127.393 $1,071.38
30-Sep-96 0.000000 8.45 2.663 0.000 127.393 $1,076.47
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN - 2.81%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VALUE $1,076.47
TOTAL RETURN FOR PERIOD 7.65%
<PAGE>
SELIGMAN MINNESOTA MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQUA $8.220
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.22 121.655 121.655 $1,000.00
17-Feb-94 0.017395 D 8.15 0.044 0.260 121.915 $993.61
28-Feb-94 8.06 0.074 0.000 121.915 $982.63
17-Mar-94 0.028704 D 7.95 0.121 0.440 122.355 $972.72
31-Mar-94 0.000000 7.81 0.159 0.000 122.355 $955.59
15-Apr-94 0.031766 D 7.77 0.200 0.500 122.855 $954.58
29-Apr-94 0.000000 7.77 0.238 0.000 122.855 $954.58
17-May-94 0.031116 D 7.79 0.288 0.491 123.346 $960.87
31-May-94 7.82 0.326 0.000 123.346 $964.57
17-Jun-94 0.033637 D 7.85 0.373 0.529 123.875 $972.42
30-Jun-94 0.000000 7.75 0.408 0.000 123.875 $960.03
15-Jul-94 0.028819 D 7.79 0.449 0.458 124.333 $968.55
29-Jul-94 0.000000 7.83 0.488 0.000 124.333 $973.53
17-Aug-94 0.032501 D 7.82 0.540 0.517 124.850 $976.33
31-Aug-94 0.000000 7.84 0.578 0.000 124.850 $978.82
16-Sep-94 0.033221 D 7.76 0.622 0.534 125.384 $972.98
30-Sep-94 0.000000 7.73 0.660 0.000 125.384 $969.22
17-Oct-94 0.030303 D 7.70 0.707 0.493 125.877 $969.25
31-Oct-94 0.000000 7.58 0.745 0.000 125.877 $954.15
17-Nov-94 0.032841 D 7.38 0.792 0.560 126.437 $933.11
17-Nov-94 0.014000 CG 7.38 0.792 0.239 126.676 $934.87
30-Nov-94 0.000000 7.43 0.827 0.000 126.676 $941.20
16-Dec-94 0.032847 D 7.49 0.871 0.556 127.232 $952.97
31-Dec-94 0.000000 7.51 0.912 0.000 127.232 $955.51
17-Jan-95 0.031824 D 7.57 0.959 0.535 127.767 $967.20
31-Jan-95 0.000000 7.63 0.997 0.000 127.767 $974.86
17-Feb-95 0.035777 D 7.72 1.044 0.592 128.359 $990.93
28-Feb-95 0.000000 7.75 1.074 0.000 128.359 $994.78
17-Mar-95 0.028087 D 7.76 1.121 0.465 128.824 $999.67
31-Mar-95 0.000000 7.77 1.159 0.000 128.824 $1,000.96
17-Apr-95 0.030389 D 7.80 1.205 0.502 129.326 $1,008.74
28-Apr-95 0.000000 7.74 1.236 0.000 129.326 $1,000.98
17-May-95 0.031710 D 7.84 1.288 0.523 129.849 $1,018.02
31-May-95 0.000000 7.86 1.326 0.000 129.849 $1,020.61
16-Jun-95 0.032629 D 7.82 1.370 0.542 130.391 $1,019.66
30-Jun-95 0.000000 7.80 1.408 0.000 130.391 $1,017.05
17-Jul-95 0.029071 D 7.83 1.455 0.484 130.875 $1,024.75
31-Jul-95 0.000000 7.81 1.493 0.000 130.875 $1,022.13
17-Aug-95 0.031636 D 7.78 1.540 0.532 131.407 $1,022.35
31-Aug-95 0.000000 7.83 1.578 0.000 131.407 $1,028.92
15-Sep-95 0.031421 D 7.88 1.619 0.524 131.931 $1,039.62
30-Sep-95 7.82 1.660 0.000 131.931 $1,031.70
17-Oct-95 0.030110 D 7.84 1.707 0.507 132.438 $1,038.31
31-Oct-95 0.000000 7.82 1.745 0.000 132.438 $1,035.67
17-Nov-95 0.020000 G 7.82 1.792 0.339 132.777 $1,038.32
17-Nov-95 0.033479 D 7.82 1.792 0.567 133.344 $1,042.75
30-Nov-95 0.000000 7.85 1.827 0.000 133.344 $1,046.75
15-Dec-95 0.028279 D 7.84 1.868 0.481 133.825 $1,049.19
29-Dec-95 0.000000 7.88 1.907 0.000 133.825 $1,054.54
31-Dec-95 0.000000 7.88 1.912 0.000 133.825 $1,054.54
17-Jan-96 0.031520 D 7.85 1.959 0.537 134.362 $1,054.74
31-Jan-96 0.000000 7.85 1.997 0.000 134.362 $1,054.74
16-Feb-96 0.032926 D 7.87 2.041 0.562 134.924 $1,061.85
29-Feb-96 0.000000 7.80 2.077 0.000 134.924 $1,052.41
15-Mar-96 0.025256 D 7.63 2.118 0.447 135.371 $1,032.88
29-Mar-96 0.000000 7.68 2.156 0.000 135.371 $1,039.65
31-Mar-96 0.000000 7.68 2.162 0.000 135.371 $1,039.65
17-Apr-96 0.028737 D 7.64 2.208 0.509 135.880 $1,038.12
30-Apr-96 0.000000 7.62 2.244 0.000 135.880 $1,035.41
17-May-96 0.029717 D 7.66 2.290 0.527 136.407 $1,044.88
31-May-96 0.000000 D 7.61 2.329 0.000 136.407 $1,038.06
17-Jun-96 0.027031 D 7.57 2.375 0.487 136.894 $1,036.29
30-Jun-96 0.000000 7.64 2.411 0.000 136.894 $1,045.87
17-Jul-96 0.028476 D 7.62 2.458 0.512 137.406 $1,047.03
31-Jul-96 0.000000 7.66 2.496 0.000 137.406 $1,052.53
16-Aug-96 0.030006 D 7.72 2.540 0.534 137.940 $1,064.90
31-Aug-96 0.000000 7.63 2.581 0.000 137.940 $1,052.48
17-Sep-96 0.028164 D 7.67 2.627 0.507 138.447 $1,061.89
30-Sep-96 0.000000 7.68 2.663 0.000 138.447 $1,063.27
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN 2.33%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VALU $1,063.27
TOTAL RETURN FOR PERIOD 6.33%
<PAGE>
SELIGMAN MISSOURI MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQUA $8.200
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
---------- --------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.20 121.951 121.951 $1,000.00
17-Feb-94 0.015297 D 8.06 0.044 0.231 122.182 $984.79
28-Feb-94 7.95 0.074 0.000 122.182 $971.35
17-Mar-94 0.025275 D 7.83 0.121 0.394 122.576 $959.77
31-Mar-94 0.000000 7.55 0.159 0.000 122.576 $925.45
15-Apr-94 0.028042 D 7.51 0.200 0.458 123.034 $923.99
29-Apr-94 0.000000 7.52 0.238 0.000 123.034 $925.22
17-May-94 0.027364 D 7.53 0.288 0.447 123.481 $929.81
31-May-94 7.58 0.326 0.000 123.481 $935.99
17-Jun-94 0.029458 D 7.65 0.373 0.475 123.956 $948.26
30-Jun-94 0.000000 7.49 0.408 0.000 123.956 $928.43
15-Jul-94 0.024828 D 7.54 0.449 0.408 124.364 $937.70
29-Jul-94 0.000000 7.60 0.488 0.000 124.364 $945.17
17-Aug-94 0.027685 D 7.58 0.540 0.454 124.818 $946.12
31-Aug-94 0.000000 7.59 0.578 0.000 124.818 $947.37
16-Sep-94 0.028363 D 7.47 0.622 0.474 125.292 $935.93
30-Sep-94 0.000000 7.41 0.660 0.000 125.292 $928.41
17-Oct-94 0.025871 D 7.41 0.707 0.437 125.729 $931.65
31-Oct-94 0.000000 7.25 0.745 0.000 125.729 $911.54
17-Nov-94 0.028413 D 6.87 0.792 0.520 126.249 $867.33
17-Nov-94 0.070000 CG 6.87 0.792 1.281 127.530 $876.13
30-Nov-94 0.000000 6.99 0.827 0.000 127.530 $891.43
16-Dec-94 0.027830 D 7.13 0.871 0.498 128.028 $912.84
31-Dec-94 0.000000 7.16 0.912 0.000 128.028 $916.68
17-Jan-95 0.026824 D 7.28 0.959 0.472 128.500 $935.48
31-Jan-95 0.000000 7.36 0.997 0.000 128.500 $945.76
17-Feb-95 0.029530 D 7.48 1.044 0.507 129.007 $964.97
28-Feb-95 0.000000 7.55 1.074 0.000 129.007 $974.00
17-Mar-95 0.024044 D 7.58 1.121 0.409 129.416 $980.97
31-Mar-95 0.000000 7.58 1.159 0.000 129.416 $980.97
17-Apr-95 0.024871 D 7.64 1.205 0.421 129.837 $991.95
28-Apr-95 0.000000 7.54 1.236 0.000 129.837 $978.97
17-May-95 0.024997 D 7.71 1.288 0.421 130.258 $1,004.29
31-May-95 0.000000 7.76 1.326 0.000 130.258 $1,010.80
16-Jun-95 0.025806 D 7.66 1.370 0.439 130.697 $1,001.14
30-Jun-95 7.62 1.408 0.000 130.697 $995.91
17-Jul-95 0.023677 D 7.69 1.455 0.402 131.099 $1,008.15
31-Jul-95 0.000000 7.62 1.493 0.000 131.099 $998.97
17-Aug-95 0.026690 D 7.55 1.540 0.463 131.562 $993.29
31-Aug-95 0.000000 7.69 1.578 0.000 131.562 $1,011.71
15-Sep-95 0.026714 D 7.75 1.619 0.453 132.015 $1,023.12
30-Sep-95 7.70 1.660 0.000 132.015 $1,016.52
17-Oct-95 0.025955 D 7.82 1.707 0.438 132.453 $1,035.78
31-Oct-95 0.000000 7.79 1.745 0.000 132.453 $1,031.81
17-Nov-95 0.073000 G 7.75 1.792 1.248 133.701 $1,036.18
17-Nov-95 0.028948 D 7.75 1.792 0.495 134.196 $1,040.02
30-Nov-95 0.000000 7.82 1.827 0.000 134.196 $1,049.41
15-Dec-95 0.024522 D 7.81 1.868 0.421 134.617 $1,051.36
29-Dec-95 0.000000 7.88 1.907 0.000 134.617 $1,060.78
31-Dec-95 0.000000 7.88 1.912 0.000 134.617 $1,060.78
17-Jan-96 0.027054 D 7.85 1.959 0.464 135.081 $1,060.39
31-Jan-96 0.000000 7.87 1.997 0.000 135.081 $1,063.09
16-Feb-96 0.028370 D 7.87 2.041 0.487 135.568 $1,066.92
29-Feb-96 0.000000 7.80 2.077 0.000 135.568 $1,057.43
15-Mar-96 0.023173 D 7.56 2.118 0.416 135.984 $1,028.04
29-Mar-96 0.000000 7.64 2.156 0.000 135.984 $1,038.92
31-Mar-96 0.000000 7.64 2.162 0.000 135.984 $1,038.92
17-Apr-96 0.026830 D 7.58 2.208 0.481 136.465 $1,034.40
30-Apr-96 0.000000 7.57 2.244 0.000 136.465 $1,033.04
17-May-96 0.028164 D 7.62 2.290 0.504 136.969 $1,043.70
31-May-96 0.000000 D 7.57 2.329 0.000 136.969 $1,036.86
17-Jun-96 0.025919 D 7.53 2.375 0.471 137.440 $1,034.92
30-Jun-96 0.000000 7.62 2.411 0.000 137.440 $1,047.29
17-Jul-96 0.025782 D 7.60 2.458 0.466 137.906 $1,048.09
31-Jul-96 0.000000 7.66 2.496 0.000 137.906 $1,056.36
16-Aug-96 0.027340 D 7.74 2.540 0.487 138.393 $1,071.16
31-Aug-96 0.000000 7.64 2.581 0.000 138.393 $1,057.32
17-Sep-96 0.025778 D 7.69 2.627 0.464 138.857 $1,067.81
30-Sep-96 0.000000 7.72 2.663 0.000 138.857 $1,071.98
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETURN 2.64%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VALU $1,071.98
TOTAL RETURN FOR PERIOD 7.20%
<PAGE>
SELIGMAN NEW YORK MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQU $8.550
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.55 116.959 116.959 $1,000.00
17-Feb-94 0.016202 D 8.43 0.044 0.225 117.184 $987.86
28-Feb-94 8.30 0.074 0.000 117.184 $972.63
17-Mar-94 0.027312 D 8.15 0.121 0.393 117.577 $958.25
31-Mar-94 0.000000 7.85 0.159 0.000 117.577 $922.98
15-Apr-94 0.031676 D 7.79 0.200 0.478 118.055 $919.65
29-Apr-94 0.000000 7.82 0.238 0.000 118.055 $923.19
17-May-94 0.029689 D 7.83 0.288 0.448 118.503 $927.88
31-May-94 7.87 0.326 0.000 118.503 $932.62
17-Jun-94 0.032232 D 7.91 0.373 0.483 118.986 $941.18
30-Jun-94 0.000000 7.78 0.408 0.000 118.986 $925.71
15-Jul-94 0.026909 D 7.85 0.449 0.408 119.394 $937.24
29-Jul-94 0.000000 7.91 0.488 0.000 119.394 $944.41
17-Aug-94 0.029822 D 7.90 0.540 0.451 119.845 $946.78
31-Aug-94 0.000000 7.89 0.578 0.000 119.845 $945.58
16-Sep-94 0.029689 D 7.75 0.622 0.459 120.304 $932.36
30-Sep-94 0.000000 7.67 0.660 0.000 120.304 $922.73
17-Oct-94 0.027554 D 7.66 0.707 0.433 120.737 $924.85
31-Oct-94 0.000000 7.45 0.745 0.000 120.737 $899.49
17-Nov-94 0.030254 D 6.88 0.792 0.531 121.268 $834.32
17-Nov-94 0.170000 CG 6.88 0.792 2.983 124.251 $854.85
30-Nov-94 0.000000 7.03 0.827 0.000 124.251 $873.48
16-Dec-94 0.029921 D 7.18 0.871 0.518 124.769 $895.84
31-Dec-94 0.000000 7.23 0.912 0.000 124.769 $902.08
17-Jan-95 0.028313 D 7.36 0.959 0.480 125.249 $921.83
31-Jan-95 0.000000 7.44 0.997 0.000 125.249 $931.85
17-Feb-95 0.031128 D 7.60 1.044 0.513 125.762 $955.79
28-Feb-95 0.000000 7.69 1.074 0.000 125.762 $967.11
17-Mar-95 0.024694 D 7.72 1.121 0.402 126.164 $973.99
31-Mar-95 0.000000 7.71 1.159 0.000 126.164 $972.72
17-Apr-95 0.026412 D 7.82 1.205 0.426 126.590 $989.93
28-Apr-95 0.000000 7.70 1.236 0.000 126.590 $974.74
17-May-95 0.027873 D 7.91 1.288 0.446 127.036 $1,004.85
31-May-95 0.000000 7.96 1.326 0.000 127.036 $1,011.21
16-Jun-95 0.028325 D 7.84 1.370 0.459 127.495 $999.56
30-Jun-95 0.000000 7.78 1.408 0.000 127.495 $991.91
17-Jul-95 0.025197 D 7.87 1.455 0.408 127.903 $1,006.60
31-Jul-95 0.000000 7.80 1.493 0.000 127.903 $997.64
17-Aug-95 0.027213 D 7.71 1.540 0.451 128.354 $989.61
31-Aug-95 0.000000 7.87 1.578 0.000 128.354 $1,010.15
15-Sep-95 0.028969 D 7.94 1.619 0.468 128.822 $1,022.85
30-Sep-95 7.87 1.660 0.000 128.822 $1,013.83
17-Oct-95 0.028034 D 8.01 1.707 0.451 129.273 $1,035.48
31-Oct-95 0.000000 7.99 1.745 0.000 129.273 $1,032.89
17-Nov-95 0.031005 D 8.05 1.792 0.498 129.771 $1,044.66
30-Nov-95 0.000000 8.12 1.827 0.000 129.771 $1,053.74
15-Dec-95 0.025733 D 8.11 1.868 0.412 130.183 $1,055.78
29-Dec-95 0.000000 8.19 1.907 0.000 130.183 $1,066.20
31-Dec-95 0.000000 8.19 1.912 0.000 130.183 $1,066.20
17-Jan-96 0.028434 D 8.17 1.959 0.453 130.636 $1,067.30
31-Jan-96 0.000000 8.19 1.997 0.000 130.636 $1,069.91
16-Feb-96 0.030230 D 8.21 2.041 0.481 131.117 $1,076.47
29-Feb-96 0.000000 8.12 2.077 0.000 131.117 $1,064.67
15-Mar-96 0.025362 D 7.84 2.118 0.424 131.541 $1,031.28
29-Mar-96 0.000000 7.93 2.156 0.000 131.541 $1,043.12
31-Mar-96 0.000000 7.93 2.162 0.000 131.541 $1,043.12
17-Apr-96 0.029156 D 7.87 2.208 0.487 132.028 $1,039.06
30-Apr-96 0.000000 7.84 2.244 0.000 132.028 $1,035.10
17-May-96 0.030198 D 7.88 2.290 0.506 132.534 $1,044.37
31-May-96 0.000000 D 7.80 2.329 0.000 132.534 $1,033.77
17-Jun-96 0.027863 D 7.78 2.375 0.475 133.009 $1,034.81
30-Jun-96 0.000000 7.89 2.411 0.000 133.009 $1,049.44
17-Jul-96 0.029094 D 7.87 2.458 0.492 133.501 $1,050.65
31-Jul-96 0.000000 7.92 2.496 0.000 133.501 $1,057.33
16-Aug-96 0.030625 D 8.02 2.540 0.510 134.011 $1,074.77
31-Aug-96 0.000000 7.88 2.581 0.000 134.011 $1,056.01
17-Sep-96 0.028632 D 7.94 2.627 0.483 134.494 $1,067.88
30-Sep-96 0.000000 7.98 2.663 0.000 134.494 $1,073.26
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETUR 2.69%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VAL $1,073.26
TOTAL RETURN FOR PERIOD 7.33%
<PAGE>
SELIGMAN OHIO MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.610
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.61 116.144 116.144 $1,000.00
17-Feb-94 0.016707 D 8.49 0.044 0.229 116.373 $988.01
28-Feb-94 8.38 0.074 0.000 116.373 $975.21
17-Mar-94 0.028072 D 8.26 0.121 0.395 116.768 $964.50
31-Mar-94 0.000000 8.04 0.159 0.000 116.768 $938.81
15-Apr-94 0.031364 D 8.04 0.200 0.456 117.224 $942.48
29-Apr-94 0.000000 8.04 0.238 0.000 117.224 $942.48
17-May-94 0.030462 D 8.06 0.288 0.443 117.667 $948.40
31-May-94 8.11 0.326 0.000 117.667 $954.28
17-Jun-94 0.032855 D 8.16 0.373 0.474 118.141 $964.03
30-Jun-94 0.000000 8.02 0.408 0.000 118.141 $947.49
15-Jul-94 0.028136 D 8.07 0.449 0.412 118.553 $956.72
29-Jul-94 0.000000 8.12 0.488 0.000 118.553 $962.65
17-Aug-94 0.031634 D 8.10 0.540 0.463 119.016 $964.03
31-Aug-94 0.000000 8.10 0.578 0.000 119.016 $964.03
16-Sep-94 0.031713 D 7.98 0.622 0.473 119.489 $953.52
30-Sep-94 0.000000 7.92 0.660 0.000 119.489 $946.35
17-Oct-94 0.028513 D 7.89 0.707 0.432 119.921 $946.18
31-Oct-94 0.000000 7.74 0.745 0.000 119.921 $928.19
17-Nov-94 0.074000 CG 7.38 0.792 1.202 121.123 $893.89
17-Nov-94 0.031465 D 7.38 0.792 0.511 121.634 $897.66
30-Nov-94 0.000000 7.50 0.827 0.000 121.634 $912.26
16-Dec-94 0.031595 D 7.60 0.871 0.506 122.140 $928.26
31-Dec-94 0.000000 7.64 0.912 0.000 122.140 $933.15
17-Jan-95 0.029555 D 7.75 0.959 0.466 122.606 $950.20
31-Jan-95 0.000000 7.81 0.997 0.000 122.606 $957.55
17-Feb-95 0.032754 D 7.94 1.044 0.506 123.112 $977.51
28-Feb-95 0.000000 8.00 1.074 0.000 123.112 $984.90
17-Mar-95 0.026349 D 8.03 1.121 0.404 123.516 $991.83
31-Mar-95 0.000000 8.02 1.159 0.000 123.516 $990.60
17-Apr-95 0.027871 D 8.08 1.205 0.426 123.942 $1,001.45
28-Apr-95 0.000000 7.99 1.236 0.000 123.942 $990.30
17-May-95 0.028375 D 8.15 1.288 0.432 124.374 $1,013.65
31-May-95 0.000000 8.18 1.326 0.000 124.374 $1,017.38
16-Jun-95 0.029568 D 8.12 1.370 0.453 124.827 $1,013.60
30-Jun-95 0.000000 8.07 1.408 0.000 124.827 $1,007.35
17-Jul-95 0.026843 D 8.15 1.455 0.411 125.238 $1,020.69
31-Jul-95 0.000000 8.09 1.493 0.000 125.238 $1,013.18
17-Aug-95 0.030308 D 8.01 1.540 0.474 125.712 $1,006.95
31-Aug-95 0.000000 8.13 1.578 0.000 125.712 $1,022.04
15-Sep-95 0.030678 D 8.19 1.619 0.471 126.183 $1,033.44
30-Sep-95 8.15 1.660 0.000 126.183 $1,028.39
17-Oct-95 0.029308 D 8.24 1.707 0.449 126.632 $1,043.45
31-Oct-95 0.000000 8.22 1.745 0.000 126.632 $1,040.92
17-Nov-95 0.038000 G 8.23 1.792 0.585 127.217 $1,047.00
17-Nov-95 0.033404 D 8.23 1.792 0.514 127.731 $1,051.23
30-Nov-95 0.000000 8.27 1.827 0.000 127.731 $1,056.34
15-Dec-95 0.028220 D 8.26 1.868 0.436 128.167 $1,058.66
29-Dec-95 0.000000 8.32 1.907 0.000 128.167 $1,066.35
31-Dec-95 0.000000 8.32 1.912 0.000 128.167 $1,066.35
17-Jan-96 0.030737 D 8.31 1.959 0.474 128.641 $1,069.01
31-Jan-96 0.000000 8.33 1.997 0.000 128.641 $1,071.58
16-Feb-96 0.032407 D 8.35 2.041 0.499 129.140 $1,078.32
29-Feb-96 0.000000 8.26 2.077 0.000 129.140 $1,066.70
15-Mar-96 0.026683 D 8.04 2.118 0.429 129.569 $1,041.73
29-Mar-96 0.000000 8.08 2.156 0.000 129.569 $1,046.92
31-Mar-96 0.000000 8.08 2.162 0.000 129.569 $1,046.92
17-Apr-96 0.030704 D 8.04 2.208 0.495 130.064 $1,045.71
30-Apr-96 0.000000 8.03 2.244 0.000 130.064 $1,044.41
17-May-96 0.031221 D 8.06 2.290 0.504 130.568 $1,052.38
31-May-96 0.000000 D 8.01 2.329 0.000 130.568 $1,045.85
17-Jun-96 0.028269 D 7.97 2.375 0.463 131.031 $1,044.32
30-Jun-96 0.000000 8.06 2.411 0.000 131.031 $1,056.11
17-Jul-96 0.029512 d 8.05 2.458 0.480 131.511 $1,058.66
31-Jul-96 0.000000 8.10 2.496 0.000 131.511 $1,065.24
16-Aug-96 0.031025 d 8.16 2.540 0.500 132.011 $1,077.21
31-Aug-96 0.000000 8.05 2.581 0.000 132.011 $1,062.69
17-Sep-96 0.029169 d 8.10 2.627 0.475 132.486 $1,073.14
30-Sep-96 0.000000 8.13 2.663 0.000 132.486 $1,077.11
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.83%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,077.11
TOTAL RETURN FOR PERIOD 7.71%
<PAGE>
SELIGMAN OREGON MUNICIPAL SERIES CLASS D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.020
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.02 124.688 124.688 $1,000.00
17-Feb-94 0.015315 D 7.93 0.044 0.241 124.929 $990.69
28-Feb-94 7.85 0.074 0.000 124.929 $980.69
17-Mar-94 0.025197 D 7.75 0.121 0.406 125.335 $971.35
31-Mar-94 0.000000 7.54 0.159 0.000 125.335 $945.03
15-Apr-94 0.028493 D 7.52 0.200 0.475 125.810 $946.09
30-Apr-94 0.000000 7.51 0.241 0.000 125.810 $944.83
17-May-94 0.028147 D 7.53 0.288 0.470 126.280 $950.89
31-May-94 0.000000 7.57 0.326 0.000 126.280 $955.94
17-Jun-94 0.030509 D 7.61 0.373 0.506 126.786 $964.84
30-Jun-94 0.000000 7.49 0.408 0.000 126.786 $949.63
15-Jul-94 0.025638 D 7.54 0.449 0.431 127.217 $959.22
29-Jul-94 0.000000 7.59 0.488 0.000 127.217 $965.58
17-Aug-94 0.028301 D 7.58 0.540 0.475 127.692 $967.91
31-Aug-94 0.000000 7.58 0.578 0.000 127.692 $967.91
16-Sep-94 0.028890 D 7.49 0.622 0.493 128.185 $960.11
30-Sep-94 0.000000 7.43 0.660 0.000 128.185 $952.41
17-Oct-94 0.026171 D 7.43 0.707 0.452 128.637 $955.77
31-Oct-94 0.000000 7.24 0.745 0.000 128.637 $931.33
17-Nov-94 0.028532 D 6.95 0.792 0.528 129.165 $897.70
17-Nov-94 0.018000 CG 6.95 0.792 0.333 129.498 $900.01
30-Nov-94 0.000000 7.06 0.827 0.000 129.498 $914.26
16-Dec-94 0.028541 D 7.18 0.871 0.515 130.013 $933.49
31-Dec-94 0.000000 7.21 0.912 0.000 130.013 $937.39
17-Jan-95 0.027627 D 7.31 0.959 0.491 130.504 $953.98
31-Jan-95 0.000000 7.38 0.997 0.000 130.504 $963.12
17-Feb-95 0.031000 D 7.48 1.044 0.541 131.045 $980.22
28-Feb-95 0.000000 7.54 1.074 0.000 131.045 $988.08
17-Mar-95 0.024721 D 7.56 1.121 0.429 131.474 $993.94
31-Mar-95 0.000000 7.55 1.159 0.000 131.474 $992.63
17-Apr-95 0.026218 D 7.60 1.205 0.454 131.928 $1,002.65
28-Apr-95 0.000000 7.52 1.236 0.000 131.928 $992.10
17-May-95 0.026757 D 7.67 1.288 0.460 132.388 $1,015.42
31-May-95 0.000000 7.70 1.326 0.000 132.388 $1,019.39
16-Jun-95 0.028233 D 7.63 1.370 0.490 132.878 $1,013.86
30-Jun-95 0.000000 7.60 1.408 0.000 132.878 $1,009.87
17-Jul-95 0.025519 D 7.67 1.455 0.442 133.320 $1,022.56
31-Jul-95 0.000000 7.61 1.493 0.000 133.320 $1,014.57
17-Aug-95 0.027660 D 7.55 1.540 0.488 133.808 $1,010.25
31-Aug-95 0.000000 7.64 1.578 0.000 133.808 $1,022.29
15-Sep-95 0.027759 D 7.69 1.619 0.483 134.291 $1,032.70
30-Sep-95 7.65 1.660 0.000 134.291 $1,027.33
17-Oct-95 0.026622 D 7.73 1.707 0.462 134.753 $1,041.64
31-Oct-95 0.000000 7.71 1.745 0.000 134.753 $1,038.95
17-Nov-95 0.008000 G 7.74 1.792 0.139 134.892 $1,044.06
17-Nov-95 0.029381 D 7.74 1.792 0.512 135.404 $1,048.03
30-Nov-95 0.000000 7.80 1.827 0.000 135.404 $1,056.15
15-Dec-95 0.025047 D 7.77 1.868 0.436 135.840 $1,055.48
29-Dec-95 0.000000 7.82 1.907 0.000 135.840 $1,062.27
31-Dec-95 0.000000 7.82 1.912 0.000 135.840 $1,062.27
17-Jan-96 0.027838 D 7.81 1.959 0.484 136.324 $1,064.69
31-Jan-96 0.000000 7.81 1.997 0.000 136.324 $1,064.69
16-Feb-96 0.029815 D 7.81 2.041 0.520 136.844 $1,068.75
29-Feb-96 0.000000 7.74 2.077 0.000 136.844 $1,059.17
15-Mar-96 0.024584 D 7.54 2.118 0.446 137.290 $1,035.17
29-Mar-96 0.000000 7.60 2.156 0.000 137.290 $1,043.40
31-Mar-96 0.000000 7.60 2.162 0.000 137.290 $1,043.40
17-Apr-96 0.028066 D 7.57 2.208 0.509 137.799 $1,043.14
30-Apr-96 0.000000 7.55 2.244 0.000 137.799 $1,040.38
17-May-96 0.029031 D 7.59 2.290 0.527 138.326 $1,049.89
31-May-96 0.000000 D 7.54 2.329 0.000 138.326 $1,042.98
17-Jun-96 0.025735 D 7.51 2.375 0.474 138.800 $1,042.39
30-Jun-96 0.000000 7.59 2.411 0.000 138.800 $1,053.49
17-Jul-96 0.026822 d 7.58 2.458 0.491 139.291 $1,055.83
31-Jul-96 0.000000 7.62 2.496 0.000 139.291 $1,061.40
16-Aug-96 0.028254 d 7.68 2.540 0.512 139.803 $1,073.69
31-Aug-96 0.000000 7.57 2.581 0.000 139.803 $1,058.31
17-Sep-96 0.026395 d 7.61 2.627 0.485 140.288 $1,067.59
30-Sep-96 0.000000 7.64 2.663 0.000 140.288 $1,071.80
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.64%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,071.80
TOTAL RETURN FOR PERIOD 7.18%
<PAGE>
SELIGMAN S. CAROLINA MUNICIPAL SERIES CL D
AVERAGE ANNUAL TOTAL RETURN OF AN ASSUMED INVESTMENT OF $1,000.00
RETURN COMPUTATION FOR THE 2.66 YEAR PERIOD ENDED 30-Sep-96
LOAD RATE EQUALS 0.00% MAXIMUM OFFERING PRICE EQ $8.420
DVD PER # OF SHARES CUMUL
DATE SHARE D/G NAV YRS ACQUIRED SHARES VALUE
- ---------- ---------- --- ---- ------ --------- -------- -----------
01-Feb-94 0.000000 8.42 118.765 118.765 $1,000.00
17-Feb-94 0.015094 D 8.29 0.044 0.216 118.981 $986.35
28-Feb-94 8.17 0.074 0.000 118.981 $972.07
17-Mar-94 0.025235 D 8.04 0.121 0.373 119.354 $959.61
31-Mar-94 0.000000 7.76 0.159 0.000 119.354 $926.19
15-Apr-94 0.028494 D 7.75 0.200 0.439 119.793 $928.40
29-Apr-94 0.000000 7.75 0.238 0.000 119.793 $928.40
17-May-94 0.028468 D 7.75 0.288 0.440 120.233 $931.81
31-May-94 7.80 0.326 0.000 120.233 $937.82
17-Jun-94 0.030781 D 7.86 0.373 0.471 120.704 $948.73
30-Jun-94 0.000000 7.70 0.408 0.000 120.704 $929.42
15-Jul-94 0.025914 D 7.77 0.449 0.403 121.107 $941.00
29-Jul-94 0.000000 7.83 0.488 0.000 121.107 $948.27
17-Aug-94 0.028967 D 7.80 0.540 0.450 121.557 $948.14
31-Aug-94 0.000000 7.81 0.578 0.000 121.557 $949.36
16-Sep-94 0.029749 D 7.68 0.622 0.471 122.028 $937.18
30-Sep-94 0.000000 7.61 0.660 0.000 122.028 $928.63
17-Oct-94 0.027359 D 7.60 0.707 0.439 122.467 $930.75
31-Oct-94 0.000000 7.42 0.745 0.000 122.467 $908.71
17-Nov-94 0.014000 CG 7.10 0.792 0.241 122.708 $871.23
17-Nov-94 0.030207 D 7.10 0.792 0.521 123.229 $874.93
30-Nov-94 0.000000 7.23 0.827 0.000 123.229 $890.95
16-Dec-94 0.029533 D 7.37 0.871 0.494 123.723 $911.84
31-Dec-94 0.000000 7.39 0.912 0.000 123.723 $914.31
17-Jan-95 0.028028 D 7.50 0.959 0.462 124.185 $931.39
31-Jan-95 0.000000 7.58 0.997 0.000 124.185 $941.32
17-Feb-95 0.031629 D 7.73 1.044 0.508 124.693 $963.88
28-Feb-95 0.000000 7.81 1.074 0.000 124.693 $973.85
17-Mar-95 0.024859 D 7.84 1.121 0.395 125.088 $980.69
31-Mar-95 0.000000 7.83 1.159 0.000 125.088 $979.44
17-Apr-95 0.026702 D 7.90 1.205 0.423 125.511 $991.54
28-Apr-95 0.000000 7.78 1.236 0.000 125.511 $976.48
17-May-95 0.027632 D 7.99 1.288 0.434 125.945 $1,006.30
31-May-95 0.000000 8.03 1.326 0.000 125.945 $1,011.34
16-Jun-95 0.028898 D 7.93 1.370 0.459 126.404 $1,002.38
30-Jun-95 0.000000 7.88 1.408 0.000 126.404 $996.06
17-Jul-95 0.026200 D 7.98 1.455 0.415 126.819 $1,012.02
31-Jul-95 0.000000 7.89 1.493 0.000 126.819 $1,000.60
17-Aug-95 0.028673 D 7.81 1.540 0.466 127.285 $994.10
31-Aug-95 0.000000 7.95 1.578 0.000 127.285 $1,011.92
15-Sep-95 0.028631 D 8.04 1.619 0.453 127.738 $1,027.01
30-Sep-95 7.97 1.660 0.000 127.738 $1,018.07
17-Oct-95 0.027610 D 8.10 1.707 0.435 128.173 $1,038.20
31-Oct-95 0.000000 8.08 1.745 0.000 128.173 $1,035.64
17-Nov-95 0.018000 G 8.12 1.792 0.284 128.457 $1,043.07
17-Nov-95 0.030372 D 8.12 1.792 0.479 128.936 $1,046.96
30-Nov-95 0.000000 8.18 1.827 0.000 128.936 $1,054.70
15-Dec-95 0.025639 D 8.17 1.868 0.405 129.341 $1,056.72
29-Dec-95 0.000000 8.24 1.907 0.000 129.341 $1,065.77
31-Dec-95 0.000000 8.24 1.912 0.000 129.341 $1,065.77
17-Jan-96 0.028598 D 8.21 1.959 0.451 129.792 $1,065.59
31-Jan-96 0.000000 8.24 1.997 0.000 129.792 $1,069.49
16-Feb-96 0.030649 D 8.25 2.041 0.482 130.274 $1,074.76
29-Feb-96 0.000000 8.15 2.077 0.000 130.274 $1,061.73
15-Mar-96 0.025413 D 7.91 2.118 0.419 130.693 $1,033.78
29-Mar-96 0.000000 7.98 2.156 0.000 130.693 $1,042.93
31-Mar-96 0.000000 7.98 2.162 0.000 130.693 $1,042.93
17-Apr-96 0.029177 D 7.93 2.208 0.481 131.174 $1,040.21
30-Apr-96 0.000000 7.91 2.244 0.000 131.174 $1,037.59
17-May-96 0.030197 D 7.96 2.290 0.498 131.672 $1,048.11
31-May-96 0.000000 D 7.90 2.329 0.000 131.672 $1,040.21
17-Jun-96 0.027450 D 7.86 2.375 0.460 132.132 $1,038.56
30-Jun-96 0.000000 7.97 2.411 0.000 132.132 $1,053.09
17-Jul-96 0.028303 D 7.95 2.458 0.470 132.602 $1,054.19
31-Jul-96 8.00 2.496 0.000 132.602 $1,060.82
16-Aug-96 0.029864 D 8.10 2.540 0.489 133.091 $1,078.04
31-Aug-96 7.96 2.581 0.000 133.091 $1,059.40
17-Sep-96 0.027859 D 8.03 2.627 0.462 133.553 $1,072.43
30-Sep-96 0.000000 8.06 2.663 0.000 133.553 $1,076.44
CALCULATION OF
AVERAGE ANNUAL TOTAL RETURN
P*(1+T)^N = ERV
P = INITIAL PAYMENT - $1,000.00
T = AVG. ANNUAL TOTAL RETU 2.80%
N = NUMBER OF YEARS - 2.663
ERV = ENDING REDEEMABLE VA $1,076.44
TOTAL RETURN FOR PERIOD 7.64%
SELIGMAN GROUP OF MUTUAL FUNDS
Plan for Multiple Classes of Shares
THIS PLAN, as it may be amended from time to time, sets forth the separate
arrangement and expense allocation of each class of shares (a "Class") of each
registered open-end management investment company, or series thereof, in the
Seligman Group of Mutual Funds that offers multiple classes of shares (each, a
"Fund"). The Plan has been adopted pursuant to Rule 18f-3(d) under the
Investment Company Act of 1940, as amended (the "Act"), by a majority of the
Board of Directors or Trustees, as applicable ("Directors"), of each Fund listed
on Schedule I hereto, including a majority of the Directors who are not
interested persons of such Fund within the meaning of Section 2(a)(19) of the
Act ("Disinterested Directors"). Any material amendment to this Plan is subject
to the prior approval of the Board of Directors of each Fund to which it
relates, including a majority of the Disinterested Directors.
1. General
A. Any Fund may issue more than one Class of voting stock, provided that
each Class:
i. Shall have a different arrangement for shareholder services or
the distribution of securities or both, and shall pay all of the
expenses of that arrangement;
ii. May pay a different share of other expenses, not including
advisory or custodial fees or other expenses related to the
management of the Fund's assets, if these expenses are actually
incurred in a different amount by that Class, or if the Class
receives services of a different kind or to a different degree
than other Classes of the same Fund ("Class Level Expenses");
iii. May pay a different advisory fee to the extent that any
difference in amount paid is the result of the application of the
same performance fee provisions in the advisory contract of the
Fund to the different investment performance of each Class;
iv. Shall have exclusive voting rights on any matter submitted to
shareholders that relates solely to its arrangement;
-1-
<PAGE>
v. Shall have separate voting rights on any matter submitted to
shareholders in which the interests of one Class differ from the
interests of any other Class; and
vi. Shall have in all other respects the same rights and obligations
as each other Class of the Fund.
B. i. Except as expressly contemplated by this paragraph B., no types
or categories of expenses shall be designated Class Level
Expenses.
ii. The Directors recognize that certain expenses arising in certain
sorts of unusual situations are properly attributable solely to
one Class and therefore should be borne by that Class. These
expenses ("Special Expenses") may include, for example: (i) the
costs of preparing a proxy statement for, and holding, a special
meeting of shareholders to vote on a matter affecting only one
Class; (ii) the costs of holding a special meeting of Directors
to consider such a matter; (iii) the costs of preparing a special
report relating exclusively to shareholders of one Class; and
(iv) the costs of litigation affecting one Class exclusively. J.
& W. Seligman & Co. Incorporated (the "Manager") shall be
responsible for identifying expenses that are potential Special
Expenses.
iii. Subject to clause iv. below, any Special Expense identified by
the Manager shall be treated as a Class Level Expense.
iv. Any Special Expense identified by the Manager that is material to
the Class in respect of which it is incurred shall be submitted
by the Manager to the Directors of the relevant Fund on a case by
case basis with a recommendation by the Manager as to whether it
should be treated as a Class Level Expense. If approved by the
Directors, such Special Expense shall be treated as a Class Level
Expense of the affected class.
C. i. Realized and unrealized capital gains and losses of a Fund shall
be allocated to each class of that Fund on the basis of the
aggregate net asset value of all outstanding shares ("Record
Shares") of the Class in relation to the aggregate net asset
value of Record Shares of the Fund.
-2-
<PAGE>
ii. Income and expenses of a Fund not charged directly to a
particular Class shall be allocated to each Class of that Fund on
the following basis:
a. For periodic dividend funds, on the basis of the aggregate
net asset value of Record Shares of each Class in relation
to the aggregate net asset value of Record Shares of the
Fund.
b. For daily dividend funds, on the basis of the aggregate net
asset value of Settled Shares of each Class in relation to
the aggregate net asset value of Settled Shares of the Fund.
"Settled Shares" means Record Shares minus the number of
shares of that Class or Fund that have been issued but for
which payment has not cleared and plus the number of shares
of that Class or Fund which have been redeemed but for which
payment has not yet been issued.
D. On an ongoing basis, the Directors, pursuant to their fiduciary
responsibilities under the Act and otherwise, will monitor each Fund
for the existence of any material conflicts among the interests of its
several Classes. The Directors, including a majority of the
Disinterested Directors, shall take such action as is reasonably
necessary to eliminate any such conflicts that may develop. The
Manager and Seligman Financial Services, Inc. (the "Distributor") will
be responsible for reporting any potential or existing conflicts to
the Directors. If a conflict arises, the Manager and the Distributor
will be responsible at their own expense for remedying such conflict
by appropriate steps up to and including separating the classes in
conflict by establishing a new registered management company to
operate one of the classes.
E. The plan of each Fund adopted pursuant to Rule 12b-1 under the Act
(the "Rule 12b-1 Plan") provides that the Directors will receive
quarterly and annual statements complying with paragraph (b)(3)(ii) of
Rule 12b-1, as it may be amended from time to time. To the extent that
the Rule 12b-1 Plan in respect of a specific Class is a reimbursement
plan, then only distribution expenditures properly attributable to the
sale of shares of that Class will be used in the statements to support
the Rule 12b-1 fee charged to shareholders of such Class. In such
cases expenditures not related to the sale of a specific Class will
not be presented to the Directors to support Rule 12b-1 fees charged
to shareholders of such Class. The statements, including the
allocations upon which they are based, will be subject to the review
of the Disinterested Directors.
-3-
<PAGE>
F. Dividends paid by a Fund with respect to each Class, to the extent any
dividends are paid, will be calculated in the same manner, at the same
time and on the same day and will be in the same amount, except that
fee payments made under the Rule 12b-1 Plan relating to the Classes
will be borne exclusively by each Class and except that any Class
Level Expenses shall be borne by the applicable Class.
G. The Directors of each Fund hereby instruct such Fund's independent
auditors to review expense allocations each year as part of their
regular audit process, to inform the Directors and the Manager of any
irregularities detected and, if specifically requested by the
Directors, to prepare a written report thereon. In addition, if any
Special Expense is incurred by a Fund and is classified as a Class
Level Expense in the manner contemplated by paragraph B. above, the
independent auditors for such Fund, in addition to reviewing such
allocation, are hereby instructed to report thereon to the Audit
Committee of the relevant Fund and to the Manager. The Manager will be
responsible for taking such steps as are necessary to remedy any
irregularities so detected, and will do so at its own expense to the
extent such irregularities should reasonably have been detected and
prevented by the Manager in the performance of its services to the
Fund.
2. Specific Arrangements for Each Class
The following arrangements regarding shareholder services, expense
allocation and other indicated matters shall be in effect with respect to the
Class A shares, Class B shares and Class D shares of each Fund. The following
descriptions are qualified by reference to the more detailed description of such
arrangements set forth in the prospectus relating to each Fund, as the same may
from time to time be amended or supplemented (for each Fund, the "Relevant
Prospectus"), provided that no Relevant Prospectus may modify the provisions of
this Plan applicable to Rule 12b-1 fees or Class Level Expenses.
(a) Class A Shares
i. Class A shares are subject to an initial sales load which varies with
the size of the purchase, to a maximum of 4.75% of the public offering
price. Reduced sales loads shall apply in certain circumstances. Class
A shares of Seligman Cash Management Fund, Inc. shall not be subject
to an initial sales load.
-4-
<PAGE>
ii. Class A shares shall be subject to a Rule 12b-1 service fee of up to
0.25% of average daily net assets.
iii. Special Expenses attributable to the Class A shares, except those
determined by the Directors not to be Class Level Expenses of the
Class A shares in accordance with paragraph 1.B.iv., shall be Class
Level Expenses and attributed solely to the Class A shares. No other
expenses shall be treated as Class Level Expenses of the Class A
shares.
iv. The Class A shares shall be entitled to the shareholder services,
including exchange privileges, described in the Relevant Prospectus.
(b) Class D Shares
i. Class D shares are sold without an initial sales load but are subject
to a CDSL of 1% of the lesser of the current net asset value or the
original purchase price in certain cases if the shares are redeemed
within one year.
ii. Class D shares shall be subject to a Rule 12b-1 fee of up to 1.00% of
average daily net assets, consisting of an asset-based distribution
fee of up to 0.75% and a service fee of up to 0.25%.
iii. Special Expenses attributable to the Class D shares, except those
determined by the Directors not to be Class Level Expenses of the
Class D shares in accordance with paragraph 1.B.iv., shall be Class
Level Expenses and attributed solely to the Class D shares. No other
expenses shall be treated as Class Level Expenses of the Class D
shares.
iv. The Class D shares shall be entitled to the shareholder services,
including exchange privileges, described in the Relevant Prospectus.
-5-
<PAGE>
<PAGE>
Schedule I
Seligman Cash Management Fund, Inc.
Seligman Capital Fund, Inc.
Seligman Common Stock, Inc.
Seligman Communications and Information Fund, Inc.
Seligman Frontier Fund, Inc.
Seligman Growth Fund, Inc.
Seligman Income Fund, Inc.
Seligman Henderson Global Growth Opportunities Fund
Seligman Henderson Global Smaller Companies Fund
Seligman Henderson Global Technology Fund
Seligman Henderson International Fund
Seligman High-Yield Bond Fund
Seligman U.S. Government Securities Fund
Seligman National Tax-Exempt Fund
Seligman California Quality Tax-Exempt Fund
Seligman California High-Yield Tax-Exempt Fund
Seligman Colorado Tax-Exempt Fund
Seligman Florida Tax-Exempt Fund
Seligman Georgia Tax-Exempt Fund
Seligman Louisiana Tax-Exempt Fund
Seligman Maryland Tax-Exempt Fund
Seligman Massachusetts Tax-Exempt Fund
Seligman Michigan Tax-Exempt Fund
Seligman Minnesota Tax-Exempt Fund
Seligman Missouri Tax-Exempt Fund
Seligman New Jersey Tax-Exempt Fund, Inc.
Seligman New York Tax-Exempt Fund
Seligman North Carolina Tax-Exempt Fund
Seligman Ohio Tax-Exempt Fund
Seligman Oregon Tax-Exempt Fund
Seligman Pennsylvania Tax-Exempt Fund Series
Seligman South Carolina Tax-Exempt Fund
-6-
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>011
<NAME> SELIGMAN MUNICIPAL FUND SERIES-NATIONAL CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 106573
<INVESTMENTS-AT-VALUE> 108014
<RECEIVABLES> 1784
<ASSETS-OTHER> 170
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 109968
<PAYABLE-FOR-SECURITIES> 6000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 375
<TOTAL-LIABILITIES> 6375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 105365
<SHARES-COMMON-STOCK> 12821<F1>
<SHARES-COMMON-PRIOR> 13743<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3213)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1441
<NET-ASSETS> 98767<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6164<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (826)<F1>
<NET-INVESTMENT-INCOME> 5338<F1>
<REALIZED-GAINS-CURRENT> 1270
<APPREC-INCREASE-CURRENT> 478
<NET-CHANGE-FROM-OPS> 7159
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5338)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4765<F1>
<NUMBER-OF-SHARES-REDEEMED> (6050)<F1>
<SHARES-REINVESTED> 363<F1>
<NET-CHANGE-IN-ASSETS> (1806)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4483)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 515<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 826<F1>
<AVERAGE-NET-ASSETS> 102891<F1>
<PER-SHARE-NAV-BEGIN> 7.58<F1>
<PER-SHARE-NII> .40<F1>
<PER-SHARE-GAIN-APPREC> .12<F1>
<PER-SHARE-DIVIDEND> (.40)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.70<F1>
<EXPENSE-RATIO> .80<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>014
<NAME> SELIGMAN MUNICIPAL FUND SERIES-NATIONAL CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 106573
<INVESTMENTS-AT-VALUE> 108014
<RECEIVABLES> 1784
<ASSETS-OTHER> 170
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 109968
<PAYABLE-FOR-SECURITIES> 6000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 375
<TOTAL-LIABILITIES> 6375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 105365
<SHARES-COMMON-STOCK> 627<F1>
<SHARES-COMMON-PRIOR> 160<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3213)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1441
<NET-ASSETS> 4826<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 103<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (29)<F1>
<NET-INVESTMENT-INCOME> 74<F1>
<REALIZED-GAINS-CURRENT> 1270
<APPREC-INCREASE-CURRENT> 478
<NET-CHANGE-FROM-OPS> 7159
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (75)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1208<F1>
<NUMBER-OF-SHARES-REDEEMED> (748)<F1>
<SHARES-REINVESTED> 7<F1>
<NET-CHANGE-IN-ASSETS> (1806)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4483)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29<F1>
<AVERAGE-NET-ASSETS> 1742<F1>
<PER-SHARE-NAV-BEGIN> 7.57<F1>
<PER-SHARE-NII> .33<F1>
<PER-SHARE-GAIN-APPREC> .13<F1>
<PER-SHARE-DIVIDEND> (.33)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.70<F1>
<EXPENSE-RATIO> 1.67<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>091
<NAME> SELIGMAN MUNICIPAL FUND SERIES - COLORADO CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 50858
<INVESTMENTS-AT-VALUE> 51633
<RECEIVABLES> 1091
<ASSETS-OTHER> 16
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 52740
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 190
<TOTAL-LIABILITIES> 190
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51813
<SHARES-COMMON-STOCK> 7193<F1>
<SHARES-COMMON-PRIOR> 7518<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (38)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 775
<NET-ASSETS> 52295<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3148<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (449)<F1>
<NET-INVESTMENT-INCOME> 2699<F1>
<REALIZED-GAINS-CURRENT> 230
<APPREC-INCREASE-CURRENT> (404)
<NET-CHANGE-FROM-OPS> 2535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2699)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 384<F1>
<NUMBER-OF-SHARES-REDEEMED> (909)<F1>
<SHARES-REINVESTED> 200<F1>
<NET-CHANGE-IN-ASSETS> (2500)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (268)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 266<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 449<F1>
<AVERAGE-NET-ASSETS> 53196<F1>
<PER-SHARE-NAV-BEGIN> 7.30<F1>
<PER-SHARE-NII> .37<F1>
<PER-SHARE-GAIN-APPREC> (.03)<F1>
<PER-SHARE-DIVIDEND> (.37)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.27<F1>
<EXPENSE-RATIO> .85<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>094
<NAME> SELIGMAN MUNICIPAL FUND SERIES - COLORADO CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 50858
<INVESTMENTS-AT-VALUE> 51633
<RECEIVABLES> 1091
<ASSETS-OTHER> 16
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 52740
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 190
<TOTAL-LIABILITIES> 190
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51813
<SHARES-COMMON-STOCK> 35<F1>
<SHARES-COMMON-PRIOR> 26<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (38)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 775
<NET-ASSETS> 255<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 14<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (4)<F1>
<NET-INVESTMENT-INCOME> 10<F1>
<REALIZED-GAINS-CURRENT> 230
<APPREC-INCREASE-CURRENT> (404)
<NET-CHANGE-FROM-OPS> 2535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (10)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1<F1>
<NUMBER-OF-SHARES-REDEEMED> 0<F1>
<SHARES-REINVESTED> 8<F1>
<NET-CHANGE-IN-ASSETS> (2500)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (268)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4<F1>
<AVERAGE-NET-ASSETS> 239<F1>
<PER-SHARE-NAV-BEGIN> 7.29<F1>
<PER-SHARE-NII> .31<F1>
<PER-SHARE-GAIN-APPREC> (.02)<F1>
<PER-SHARE-DIVIDEND> (.31)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.27<F1>
<EXPENSE-RATIO> 1.75<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>131
<NAME> SELIGMAN MUNICIPAL FUND SERIES-GEORGIA CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 50014
<INVESTMENTS-AT-VALUE> 51482
<RECEIVABLES> 1965
<ASSETS-OTHER> 45
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53492
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170
<TOTAL-LIABILITIES> 170
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51675
<SHARES-COMMON-STOCK> 6482<F1>
<SHARES-COMMON-PRIOR> 7387<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 179
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1468
<NET-ASSETS> 50995<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3151<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (453)<F1>
<NET-INVESTMENT-INCOME> 2698<F1>
<REALIZED-GAINS-CURRENT> 235
<APPREC-INCREASE-CURRENT> 574
<NET-CHANGE-FROM-OPS> 3604
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2698)<F1>
<DISTRIBUTIONS-OF-GAINS> (396)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 316<F1>
<NUMBER-OF-SHARES-REDEEMED> (1481)<F1>
<SHARES-REINVESTED> 260<F1>
<NET-CHANGE-IN-ASSETS> (6435)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 354
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 274<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 453<F1>
<AVERAGE-NET-ASSETS> 54631<F1>
<PER-SHARE-NAV-BEGIN> 7.81<F1>
<PER-SHARE-NII> .39<F1>
<PER-SHARE-GAIN-APPREC> .11<F1>
<PER-SHARE-DIVIDEND> (.39)<F1>
<PER-SHARE-DISTRIBUTIONS> (.05)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.87<F1>
<EXPENSE-RATIO> .83<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>134
<NAME> SELIGMAN MUNICIPAL FUND SERIES-GEORGIA CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 50014
<INVESTMENTS-AT-VALUE> 51482
<RECEIVABLES> 1965
<ASSETS-OTHER> 45
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53492
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170
<TOTAL-LIABILITIES> 170
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51675
<SHARES-COMMON-STOCK> 295<F1>
<SHARES-COMMON-PRIOR> 266<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 179
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1468
<NET-ASSETS> 2328<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 138<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (41)<F1>
<NET-INVESTMENT-INCOME> 97<F1>
<REALIZED-GAINS-CURRENT> 235
<APPREC-INCREASE-CURRENT> 574
<NET-CHANGE-FROM-OPS> 3604
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (97)<F1>
<DISTRIBUTIONS-OF-GAINS> (14)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 127<F1>
<NUMBER-OF-SHARES-REDEEMED> (109)<F1>
<SHARES-REINVESTED> 11<F1>
<NET-CHANGE-IN-ASSETS> (6435)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 354
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 41<F1>
<AVERAGE-NET-ASSETS> 2405<F1>
<PER-SHARE-NAV-BEGIN> 7.82<F1>
<PER-SHARE-NII> .32<F1>
<PER-SHARE-GAIN-APPREC> .11<F1>
<PER-SHARE-DIVIDEND> (.32)<F1>
<PER-SHARE-DISTRIBUTIONS> (.05)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.88<F1>
<EXPENSE-RATIO> 1.73<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>071
<NAME> SELIGMAN MUNICIPAL FUND SERIES-LOUISIANA CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 54700
<INVESTMENTS-AT-VALUE> 56641
<RECEIVABLES> 963
<ASSETS-OTHER> 245
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57848
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 194
<TOTAL-LIABILITIES> 194
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54958
<SHARES-COMMON-STOCK> 7014<F1>
<SHARES-COMMON-PRIOR> 7618<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 755
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1941
<NET-ASSETS> 57265<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3585<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (493)<F1>
<NET-INVESTMENT-INCOME> 3092<F1>
<REALIZED-GAINS-CURRENT> 764
<APPREC-INCREASE-CURRENT> (27)
<NET-CHANGE-FROM-OPS> 3846
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3092)<F1>
<DISTRIBUTIONS-OF-GAINS> (467)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 289<F1>
<NUMBER-OF-SHARES-REDEEMED> (1133)<F1>
<SHARES-REINVESTED> 240<F1>
<NET-CHANGE-IN-ASSETS> (4799)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 462
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 300<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 493<F1>
<AVERAGE-NET-ASSETS> 59998<F1>
<PER-SHARE-NAV-BEGIN> 8.14<F1>
<PER-SHARE-NII> .42<F1>
<PER-SHARE-GAIN-APPREC> .08<F1>
<PER-SHARE-DIVIDEND> (.42)<F1>
<PER-SHARE-DISTRIBUTIONS> (.06)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.16<F1>
<EXPENSE-RATIO> .82<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>074
<NAME> SELIGMAN MUNICIPAL FUND SERIES-LOUISIANA CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 54700
<INVESTMENTS-AT-VALUE> 56641
<RECEIVABLES> 962
<ASSETS-OTHER> 245
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57848
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 194
<TOTAL-LIABILITIES> 194
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54958
<SHARES-COMMON-STOCK> 48<F1>
<SHARES-COMMON-PRIOR> 57<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 755
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1941
<NET-ASSETS> 389<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 24<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (7)<F1>
<NET-INVESTMENT-INCOME> 17<F1>
<REALIZED-GAINS-CURRENT> 764
<APPREC-INCREASE-CURRENT> (27)
<NET-CHANGE-FROM-OPS> 3846
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17)<F1>
<DISTRIBUTIONS-OF-GAINS> (4)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12<F1>
<NUMBER-OF-SHARES-REDEEMED> (23)<F1>
<SHARES-REINVESTED> 2<F1>
<NET-CHANGE-IN-ASSETS> (4799)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 462
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7<F1>
<AVERAGE-NET-ASSETS> 392<F1>
<PER-SHARE-NAV-BEGIN> 8.14<F1>
<PER-SHARE-NII> .35<F1>
<PER-SHARE-GAIN-APPREC> .08<F1>
<PER-SHARE-DIVIDEND> (.35)<F1>
<PER-SHARE-DISTRIBUTIONS> (.06)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.16<F1>
<EXPENSE-RATIO> 1.72<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>081
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MARYLAND CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 52984
<INVESTMENTS-AT-VALUE> 55113
<RECEIVABLES> 1146
<ASSETS-OTHER> 14
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 56273
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 185
<TOTAL-LIABILITIES> 185
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53731
<SHARES-COMMON-STOCK> 6765<F1>
<SHARES-COMMON-PRIOR> 7071<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 228
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2129
<NET-ASSETS> 54041<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3259<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> 465<F1>
<NET-INVESTMENT-INCOME> 2794<F1>
<REALIZED-GAINS-CURRENT> 237
<APPREC-INCREASE-CURRENT> 208
<NET-CHANGE-FROM-OPS> 3296
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2794)<F1>
<DISTRIBUTIONS-OF-GAINS> (237)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 390<F1>
<NUMBER-OF-SHARES-REDEEMED> (921)<F1>
<SHARES-REINVESTED> 225<F1>
<NET-CHANGE-IN-ASSETS> (832)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 232
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 276<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 465<F1>
<AVERAGE-NET-ASSETS> 55282<F1>
<PER-SHARE-NAV-BEGIN> 7.96
<PER-SHARE-NII> .40<F1>
<PER-SHARE-GAIN-APPREC> .06<F1>
<PER-SHARE-DIVIDEND> (.40)<F1>
<PER-SHARE-DISTRIBUTIONS> (.03)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.99<F1>
<EXPENSE-RATIO> .84<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>084
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MARYLAND CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 52984
<INVESTMENTS-AT-VALUE> 55113
<RECEIVABLES> 1146
<ASSETS-OTHER> 14
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 56273
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 185
<TOTAL-LIABILITIES> 185
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53731
<SHARES-COMMON-STOCK> 256<F1>
<SHARES-COMMON-PRIOR> 79<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 228
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2129
<NET-ASSETS> 2047<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 81<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> 24<F1>
<NET-INVESTMENT-INCOME> 57<F1>
<REALIZED-GAINS-CURRENT> 237
<APPREC-INCREASE-CURRENT> 208
<NET-CHANGE-FROM-OPS> 3296
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (57)<F1>
<DISTRIBUTIONS-OF-GAINS> (4)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 188<F1>
<NUMBER-OF-SHARES-REDEEMED> (17)<F1>
<SHARES-REINVESTED> 6<F1>
<NET-CHANGE-IN-ASSETS> (832)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 232
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 24<F1>
<AVERAGE-NET-ASSETS> 1379<F1>
<PER-SHARE-NAV-BEGIN> 7.97
<PER-SHARE-NII> .33<F1>
<PER-SHARE-GAIN-APPREC> .05<F1>
<PER-SHARE-DIVIDEND> (.33)<F1>
<PER-SHARE-DISTRIBUTIONS> (.03)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.99<F1>
<EXPENSE-RATIO> 1.72<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>021
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MASSACHUSETTS CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 107010
<INVESTMENTS-AT-VALUE> 109705
<RECEIVABLES> 1855
<ASSETS-OTHER> 422
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 111982
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 705
<TOTAL-LIABILITIES> 705
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107504
<SHARES-COMMON-STOCK> 14004<F1>
<SHARES-COMMON-PRIOR> 14634<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2695
<NET-ASSETS> 109872<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6822<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (905)<F1>
<NET-INVESTMENT-INCOME> 5917<F1>
<REALIZED-GAINS-CURRENT> 1212
<APPREC-INCREASE-CURRENT> (502)
<NET-CHANGE-FROM-OPS> 6679
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5917)<F1>
<DISTRIBUTIONS-OF-GAINS> (1557)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1020<F1>
<NUMBER-OF-SHARES-REDEEMED> (2233)<F1>
<SHARES-REINVESTED> 583<F1>
<NET-CHANGE-IN-ASSETS> (5325)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1436
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 566<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (905)<F1>
<AVERAGE-NET-ASSETS> 112987<F1>
<PER-SHARE-NAV-BEGIN> 7.91<F1>
<PER-SHARE-NII> .41<F1>
<PER-SHARE-GAIN-APPREC> .05<F1>
<PER-SHARE-DIVIDEND> (.41)<F1>
<PER-SHARE-DISTRIBUTIONS> (.11)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.85<F1>
<EXPENSE-RATIO> .80<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>024
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MASSACHUSETTS CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 107010
<INVESTMENTS-AT-VALUE> 109705
<RECEIVABLES> 1855
<ASSETS-OTHER> 422
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 111982
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 705
<TOTAL-LIABILITIES> 705
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107504
<SHARES-COMMON-STOCK> 179<F1>
<SHARES-COMMON-PRIOR> 113<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2695
<NET-ASSETS> 1405<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 72<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (20)<F1>
<NET-INVESTMENT-INCOME> 52<F1>
<REALIZED-GAINS-CURRENT> 1212
<APPREC-INCREASE-CURRENT> (502)
<NET-CHANGE-FROM-OPS> 6679
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (52)<F1>
<DISTRIBUTIONS-OF-GAINS> (13)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 108<F1>
<NUMBER-OF-SHARES-REDEEMED> (47)<F1>
<SHARES-REINVESTED> 5<F1>
<NET-CHANGE-IN-ASSETS> (5325)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1436
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (20)<F1>
<AVERAGE-NET-ASSETS> 1204<F1>
<PER-SHARE-NAV-BEGIN> 7.90<F1>
<PER-SHARE-NII> .34<F1>
<PER-SHARE-GAIN-APPREC> .05<F1>
<PER-SHARE-DIVIDEND> (.34)<F1>
<PER-SHARE-DISTRIBUTIONS> (.11)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.84<F1>
<EXPENSE-RATIO> 1.70<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>031
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MICHIGAN CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 141594
<INVESTMENTS-AT-VALUE> 147176
<RECEIVABLES> 2899
<ASSETS-OTHER> 97
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 150172
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 508
<TOTAL-LIABILITIES> 508
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 142489
<SHARES-COMMON-STOCK> 17517<F1>
<SHARES-COMMON-PRIOR> 17742<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1593
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5582
<NET-ASSETS> 148178<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9115<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (1169)<F1>
<NET-INVESTMENT-INCOME> 7946<F1>
<REALIZED-GAINS-CURRENT> 1595
<APPREC-INCREASE-CURRENT> (620)
<NET-CHANGE-FROM-OPS> (1575)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7946)<F1>
<DISTRIBUTIONS-OF-GAINS> (2526)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 852<F1>
<NUMBER-OF-SHARES-REDEEMED> (1877)<F1>
<SHARES-REINVESTED> 800<F1>
<NET-CHANGE-IN-ASSETS> (3907)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2549
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 752<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1169<F1>
<AVERAGE-NET-ASSETS> 150188<F1>
<PER-SHARE-NAV-BEGIN> 8.54
<PER-SHARE-NII> .45<F1>
<PER-SHARE-GAIN-APPREC> .06<F1>
<PER-SHARE-DIVIDEND> (.45)<F1>
<PER-SHARE-DISTRIBUTIONS> (.14)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.46<F1>
<EXPENSE-RATIO> .78<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>034
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MICHIGAN CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 141594
<INVESTMENTS-AT-VALUE> 147176
<RECEIVABLES> 2899
<ASSETS-OTHER> 97
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 150172
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 508
<TOTAL-LIABILITIES> 508
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 142489
<SHARES-COMMON-STOCK> 176<F1>
<SHARES-COMMON-PRIOR> 137<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1593
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5582
<NET-ASSETS> 1486<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 93<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (26)<F1>
<NET-INVESTMENT-INCOME> 67<F1>
<REALIZED-GAINS-CURRENT> 1595
<APPREC-INCREASE-CURRENT> (620)
<NET-CHANGE-FROM-OPS> (1575)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (67)<F1>
<DISTRIBUTIONS-OF-GAINS> (25)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100<F1>
<NUMBER-OF-SHARES-REDEEMED> (69)<F1>
<SHARES-REINVESTED> 8<F1>
<NET-CHANGE-IN-ASSETS> (3907)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2549
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26<F1>
<AVERAGE-NET-ASSETS> 1519<F1>
<PER-SHARE-NAV-BEGIN> 8.54
<PER-SHARE-NII> .37<F1>
<PER-SHARE-GAIN-APPREC> .05<F1>
<PER-SHARE-DIVIDEND> (.37)<F1>
<PER-SHARE-DISTRIBUTIONS> (.14)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.45<F1>
<EXPENSE-RATIO> 1.68<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>041
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MINNESOTA SERIES CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 120754
<INVESTMENTS-AT-VALUE> 126846
<RECEIVABLES> 2008
<ASSETS-OTHER> 13
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 128867
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 658
<TOTAL-LIABILITIES> 658
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 123556
<SHARES-COMMON-STOCK> 16423<F1>
<SHARES-COMMON-PRIOR> 16969<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1439)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6092
<NET-ASSETS> 126173<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8135<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (1044)<F1>
<NET-INVESTMENT-INCOME> 7091<F1>
<REALIZED-GAINS-CURRENT> 1595
<APPREC-INCREASE-CURRENT> (620)
<NET-CHANGE-FROM-OPS> 1044
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7091)<F1>
<DISTRIBUTIONS-OF-GAINS> (339)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 726<F1>
<NUMBER-OF-SHARES-REDEEMED> (1929)<F1>
<SHARES-REINVESTED> 657<F1>
<NET-CHANGE-IN-ASSETS> (6744)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 245
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 648<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1044<F1>
<AVERAGE-NET-ASSETS> 129568<F1>
<PER-SHARE-NAV-BEGIN> 7.82
<PER-SHARE-NII> .42<F1>
<PER-SHARE-GAIN-APPREC> (.12)<F1>
<PER-SHARE-DIVIDEND> (.42)<F1>
<PER-SHARE-DISTRIBUTIONS> (.02)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.68<F1>
<EXPENSE-RATIO> .81<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>044
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MINNESOTA SERIES CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 120754
<INVESTMENTS-AT-VALUE> 126846
<RECEIVABLES> 2008
<ASSETS-OTHER> 13
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 128867
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 658
<TOTAL-LIABILITIES> 658
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 123556
<SHARES-COMMON-STOCK> 265<F1>
<SHARES-COMMON-PRIOR> 286<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1439)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6092
<NET-ASSETS> 2036<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 135<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (37)<F1>
<NET-INVESTMENT-INCOME> 98<F1>
<REALIZED-GAINS-CURRENT> 1595
<APPREC-INCREASE-CURRENT> (620)
<NET-CHANGE-FROM-OPS> 1044
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (98)<F1>
<DISTRIBUTIONS-OF-GAINS> (6)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52<F1>
<NUMBER-OF-SHARES-REDEEMED> (83)<F1>
<SHARES-REINVESTED> 10<F1>
<NET-CHANGE-IN-ASSETS> (6744)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 245
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 37<F1>
<AVERAGE-NET-ASSETS> 2155<F1>
<PER-SHARE-NAV-BEGIN> 7.82
<PER-SHARE-NII> .35<F1>
<PER-SHARE-GAIN-APPREC> (.12)<F1>
<PER-SHARE-DIVIDEND> (.35)<F1>
<PER-SHARE-DISTRIBUTIONS> (.02)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.68<F1>
<EXPENSE-RATIO> 1.71<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>101
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MISSOURI CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 48090
<INVESTMENTS-AT-VALUE> 49710
<RECEIVABLES> 1003
<ASSETS-OTHER> 56
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50769
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 263
<TOTAL-LIABILITIES> 263
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 48343
<SHARES-COMMON-STOCK> 6474<F1>
<SHARES-COMMON-PRIOR> 6644<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 543
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1620
<NET-ASSETS> 49941<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2961<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (431)<F1>
<NET-INVESTMENT-INCOME> 2530<F1>
<REALIZED-GAINS-CURRENT> 702
<APPREC-INCREASE-CURRENT> (147)
<NET-CHANGE-FROM-OPS> 3109
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2530)<F1>
<DISTRIBUTIONS-OF-GAINS> (478)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 348<F1>
<NUMBER-OF-SHARES-REDEEMED> (729)<F1>
<SHARES-REINVESTED> 211<F1>
<NET-CHANGE-IN-ASSETS> (1178)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 325
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 252<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 431<F1>
<AVERAGE-NET-ASSETS> 50323<F1>
<PER-SHARE-NAV-BEGIN> 7.70<F1>
<PER-SHARE-NII> .39<F1>
<PER-SHARE-GAIN-APPREC> .08<F1>
<PER-SHARE-DIVIDEND> (.39)<F1>
<PER-SHARE-DISTRIBUTIONS> (.07)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.71<F1>
<EXPENSE-RATIO> .86<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>104
<NAME> SELIGMAN MUNICIPAL FUND SERIES-MISSOURI CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 48090
<INVESTMENTS-AT-VALUE> 49710
<RECEIVABLES> 1003
<ASSETS-OTHER> 56
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50769
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 263
<TOTAL-LIABILITIES> 263
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 48343
<SHARES-COMMON-STOCK> 73<F1>
<SHARES-COMMON-PRIOR> 67<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 543
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1620
<NET-ASSETS> 565<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 34<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (10)<F1>
<NET-INVESTMENT-INCOME> 24<F1>
<REALIZED-GAINS-CURRENT> 702
<APPREC-INCREASE-CURRENT> (147)
<NET-CHANGE-FROM-OPS> 3109
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (24)<F1>
<DISTRIBUTIONS-OF-GAINS> (6)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52<F1>
<NUMBER-OF-SHARES-REDEEMED> (48)<F1>
<SHARES-REINVESTED> 2<F1>
<NET-CHANGE-IN-ASSETS> (1178)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 325
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10<F1>
<AVERAGE-NET-ASSETS> 583<F1>
<PER-SHARE-NAV-BEGIN> 7.70
<PER-SHARE-NII> .32<F1>
<PER-SHARE-GAIN-APPREC> .09<F1>
<PER-SHARE-DIVIDEND> (.32)<F1>
<PER-SHARE-DISTRIBUTIONS> (.07)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.72<F1>
<EXPENSE-RATIO> 1.76<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>051
<NAME> SELIGMAN MUNICIPAL FUND SERIES-NEW YORK CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 80257
<INVESTMENTS-AT-VALUE> 82756
<RECEIVABLES> 1403
<ASSETS-OTHER> 32
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 84190
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 318
<TOTAL-LIABILITIES> 318
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 81158
<SHARES-COMMON-STOCK> 10372<F1>
<SHARES-COMMON-PRIOR> 10678<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 215
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2499
<NET-ASSETS> 82719<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5030<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (648)<F1>
<NET-INVESTMENT-INCOME> 4382<F1>
<REALIZED-GAINS-CURRENT> 1161
<APPREC-INCREASE-CURRENT> 36
<NET-CHANGE-FROM-OPS> 5623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4382)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 817<F1>
<NUMBER-OF-SHARES-REDEEMED> (1435)<F1>
<SHARES-REINVESTED> 312<F1>
<NET-CHANGE-IN-ASSETS> (993)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (946)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 418<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 648<F1>
<AVERAGE-NET-ASSETS> 83667<F1>
<PER-SHARE-NAV-BEGIN> 7.86
<PER-SHARE-NII> .42<F1>
<PER-SHARE-GAIN-APPREC> .12<F1>
<PER-SHARE-DIVIDEND> (.42)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.98<F1>
<EXPENSE-RATIO> .77<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>051
<NAME> SELIGMAN MUNICIPAL FUND SERIES-NEW YORK CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 80257
<INVESTMENTS-AT-VALUE> 82756
<RECEIVABLES> 1403
<ASSETS-OTHER> 32
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 84190
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 318
<TOTAL-LIABILITIES> 318
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 81158
<SHARES-COMMON-STOCK> 144<F1>
<SHARES-COMMON-PRIOR> 112<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 215
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2499
<NET-ASSETS> 1153<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 61<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (17)<F1>
<NET-INVESTMENT-INCOME> 44<F1>
<REALIZED-GAINS-CURRENT> 1161
<APPREC-INCREASE-CURRENT> 36
<NET-CHANGE-FROM-OPS> 5623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (44)<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 75<F1>
<NUMBER-OF-SHARES-REDEEMED> (47)<F1>
<SHARES-REINVESTED> 4<F1>
<NET-CHANGE-IN-ASSETS> (993)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (946)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17<F1>
<AVERAGE-NET-ASSETS> 1010<F1>
<PER-SHARE-NAV-BEGIN> 7.87
<PER-SHARE-NII> .34<F1>
<PER-SHARE-GAIN-APPREC> .11<F1>
<PER-SHARE-DIVIDEND> (.34)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.98<F1>
<EXPENSE-RATIO> 1.68<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>061
<NAME> SELIGMAN MUNICIPAL FUND SERIES-OHIO CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 153582
<INVESTMENTS-AT-VALUE> 160701
<RECEIVABLES> 2995
<ASSETS-OTHER> 102
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 163798
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 544
<TOTAL-LIABILITIES> 544
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 154754
<SHARES-COMMON-STOCK> 20051<F1>
<SHARES-COMMON-PRIOR> 20977<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1381
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7119
<NET-ASSETS> 162243<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10172<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (1290)<F1>
<NET-INVESTMENT-INCOME> 8882<F1>
<REALIZED-GAINS-CURRENT> 1397
<APPREC-INCREASE-CURRENT> (1060)
<NET-CHANGE-FROM-OPS> 9259
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8882)<F1>
<DISTRIBUTIONS-OF-GAINS> (794)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 673<F1>
<NUMBER-OF-SHARES-REDEEMED> (2349)<F1>
<SHARES-REINVESTED> 750<F1>
<NET-CHANGE-IN-ASSETS> (7597)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 781
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 835<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1290<F1>
<AVERAGE-NET-ASSETS> 166916<F1>
<PER-SHARE-NAV-BEGIN> 8.11<F1>
<PER-SHARE-NII> .43<F1>
<PER-SHARE-GAIN-APPREC> .02<F1>
<PER-SHARE-DIVIDEND> (.43)<F1>
<PER-SHARE-DISTRIBUTIONS> (.04)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.09<F1>
<EXPENSE-RATIO> .77<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>064
<NAME> SELIGMAN MUNICIPAL FUND SERIES-OHIO CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 153582
<INVESTMENTS-AT-VALUE> 160701
<RECEIVABLES> 2995
<ASSETS-OTHER> 102
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 163798
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 544
<TOTAL-LIABILITIES> 544
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 154754
<SHARES-COMMON-STOCK> 124<F1>
<SHARES-COMMON-PRIOR> 81<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1381
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7119
<NET-ASSETS> 1011<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 55<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (15)<F1>
<NET-INVESTMENT-INCOME> 40<F1>
<REALIZED-GAINS-CURRENT> 1397
<APPREC-INCREASE-CURRENT> (1060)
<NET-CHANGE-FROM-OPS> 9259
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (40)<F1>
<DISTRIBUTIONS-OF-GAINS> (3)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 43<F1>
<NUMBER-OF-SHARES-REDEEMED> (5)<F1>
<SHARES-REINVESTED> 5<F1>
<NET-CHANGE-IN-ASSETS> (7597)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 781
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 15<F1>
<AVERAGE-NET-ASSETS> 903<F1>
<PER-SHARE-NAV-BEGIN> 8.15<F1>
<PER-SHARE-NII> .36<F1>
<PER-SHARE-GAIN-APPREC> .02<F1>
<PER-SHARE-DIVIDEND> (.36)<F1>
<PER-SHARE-DISTRIBUTIONS> (.04)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.13<F1>
<EXPENSE-RATIO> 1.67<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>111
<NAME> SELIGMAN MUNICIPAL FUND SERIES-OREGON CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 57748
<INVESTMENTS-AT-VALUE> 59258
<RECEIVABLES> 1252
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 60536
<PAYABLE-FOR-SECURITIES> 1443
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 208
<TOTAL-LIABILITIES> 1651
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57093
<SHARES-COMMON-STOCK> 7499<F1>
<SHARES-COMMON-PRIOR> 7775<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 282
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1510
<NET-ASSETS> 57345<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3544<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (502)<F1>
<NET-INVESTMENT-INCOME> 3042<F1>
<REALIZED-GAINS-CURRENT> 286
<APPREC-INCREASE-CURRENT> (343)
<NET-CHANGE-FROM-OPS> 3051
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3042)<F1>
<DISTRIBUTIONS-OF-GAINS> (62)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 522<F1>
<NUMBER-OF-SHARES-REDEEMED> (1055)<F1>
<SHARES-REINVESTED> 257<F1>
<NET-CHANGE-IN-ASSETS> (2159)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 60
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 299<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 502<F1>
<AVERAGE-NET-ASSETS> 58701<F1>
<PER-SHARE-NAV-BEGIN> 7.66
<PER-SHARE-NII> .40<F1>
<PER-SHARE-GAIN-APPREC> 0<F1>
<PER-SHARE-DIVIDEND> (.40)<F1>
<PER-SHARE-DISTRIBUTIONS> (.01)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.65<F1>
<EXPENSE-RATIO> .86<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>114
<NAME> SELIGMAN MUNICIPAL FUND SERIES-OREGON CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 57748
<INVESTMENTS-AT-VALUE> 59258
<RECEIVABLES> 1252
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 60536
<PAYABLE-FOR-SECURITIES> 1443
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 208
<TOTAL-LIABILITIES> 1651
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57093
<SHARES-COMMON-STOCK> 201<F1>
<SHARES-COMMON-PRIOR> 195<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 282
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1510
<NET-ASSETS> 1540<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 93<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (27)<F1>
<NET-INVESTMENT-INCOME> 66<F1>
<REALIZED-GAINS-CURRENT> 286
<APPREC-INCREASE-CURRENT> (343)
<NET-CHANGE-FROM-OPS> 3051
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (66)<F1>
<DISTRIBUTIONS-OF-GAINS> (2)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 56<F1>
<NUMBER-OF-SHARES-REDEEMED> (57)<F1>
<SHARES-REINVESTED> 7<F1>
<NET-CHANGE-IN-ASSETS> (2159)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 60
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 27<F1>
<AVERAGE-NET-ASSETS> 1536<F1>
<PER-SHARE-NAV-BEGIN> 7.65<F1>
<PER-SHARE-NII> .33<F1>
<PER-SHARE-GAIN-APPREC> 0<F1>
<PER-SHARE-DIVIDEND> (.33)<F1>
<PER-SHARE-DISTRIBUTIONS> (.01)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.64<F1>
<EXPENSE-RATIO> 1.76<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>151
<NAME> SELIGMAN MUNICIPAL FUND SERIES-SOUTH CAROLINA CL A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 105981
<INVESTMENTS-AT-VALUE> 109482
<RECEIVABLES> 1834
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 111342
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 465
<TOTAL-LIABILITIES> 465
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 105668
<SHARES-COMMON-STOCK> 13400<F1>
<SHARES-COMMON-PRIOR> 14099<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1708
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3501
<NET-ASSETS> 108163<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6608<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (886)<F1>
<NET-INVESTMENT-INCOME> 5722<F1>
<REALIZED-GAINS-CURRENT> 1720
<APPREC-INCREASE-CURRENT> (82)
<NET-CHANGE-FROM-OPS> 7457
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5722)<F1>
<DISTRIBUTIONS-OF-GAINS> (253)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1014<F1>
<NUMBER-OF-SHARES-REDEEMED> (2149)<F1>
<SHARES-REINVESTED> 436<F1>
<NET-CHANGE-IN-ASSETS> (3248)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 246
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 556<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 886<F1>
<AVERAGE-NET-ASSETS> 111150<F1>
<PER-SHARE-NAV-BEGIN> 7.97
<PER-SHARE-NII> .41<F1>
<PER-SHARE-GAIN-APPREC> .12<F1>
<PER-SHARE-DIVIDEND> (.41)<F1>
<PER-SHARE-DISTRIBUTIONS> (.02)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.07<F1>
<EXPENSE-RATIO> .80<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER>154
<NAME> SELIGMAN MUNICIPAL FUND SERIES-SOUTH CAROLINA CL D
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 105981
<INVESTMENTS-AT-VALUE> 109482
<RECEIVABLES> 1834
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 111342
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 465
<TOTAL-LIABILITIES> 465
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 105668
<SHARES-COMMON-STOCK> 337<F1>
<SHARES-COMMON-PRIOR> 214<F1>
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1708
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3501
<NET-ASSETS> 2714<F1>
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 136<F1>
<OTHER-INCOME> 0
<EXPENSES-NET> (39)<F1>
<NET-INVESTMENT-INCOME> 97<F1>
<REALIZED-GAINS-CURRENT> 1720
<APPREC-INCREASE-CURRENT> (82)
<NET-CHANGE-FROM-OPS> 7457
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (97)<F1>
<DISTRIBUTIONS-OF-GAINS> (5)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 180<F1>
<NUMBER-OF-SHARES-REDEEMED> (68)<F1>
<SHARES-REINVESTED> 11<F1>
<NET-CHANGE-IN-ASSETS> (3248)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 246
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39<F1>
<AVERAGE-NET-ASSETS> 2287<F1>
<PER-SHARE-NAV-BEGIN> 7.97
<PER-SHARE-NII> .34<F1>
<PER-SHARE-GAIN-APPREC> .11<F1>
<PER-SHARE-DIVIDEND> (.34)<F1>
<PER-SHARE-DISTRIBUTIONS> (.02)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.06<F1>
<EXPENSE-RATIO> 1.70<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
