------------------------
Seligman
Frontier
Fund, Inc.
------------------------
A Capital
Appreciation Fund
------------------------
Mid-Year Report
March 31, 1995
------------------------
[LOGO]
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To the Shareholders
- --------------------------------------------------------------------------------
Seligman Frontier Fund reached its midyear on March 31, 1995, with net asset
value of the Class A shares at $11.16 per share, compared to $10.35 on December
31, 1994, and $11.62 at September 30, 1994. For the Class D shares, net asset
value was $10.87, compared to $10.10 and $11.40, respectively.
Total returns for the past three and six months were 7.83% and 8.73%,
respectively, for Class A shares, and 7.62% and 8.25%, respectively, for Class D
shares. This compares to the 9.74% and 9.72% total returns for the Standard &
Poor's 500 Composite Stock Price Index, and the 8.68% and 6.91% total returns
for the NASDAQ Composite Index, respectively, for the same periods. (Total
return reflects change in net asset value and assumes distributions paid within
the period, if any, are reinvested in additional shares. Class A returns do not,
however, reflect the effect of the maximum initial sales charge of 4.75%, and
Class D returns do not reflect the effect of the 1% contingent deferred sales
load.) For both Class A and D shares, net realized gain per share from
investment transactions for the six months ended March 31, 1995, totaled $0.19.
At March 31, net unrealized gain per share totaled $1.44. For long-term
performance results please refer to page 2.
After seven short-term interest rate increases by the Federal Reserve Board
in 1994, the economy began to show signs of slowing in the first quarter of
1995. For instance, sales of previously owned homes fell to their lowest level
in two years, reflecting the delayed impact of higher interest rates on the
housing market. Retail sales were also sluggish, as consumers have backed off in
the past several months. Nevertheless, consumer confidence still remains
relatively high.
Investors, encouraged by signs of slower economic growth and by hopes of a
less stringent monetary policy, boosted financial markets in the first quarter.
The bond market bounced back from the lows experienced in late 1994, and the
stock market reached new highs, notwithstanding several negative factors
including Mexico's currency crisis, the collapse of Barings (the U.K.'s oldest
and one of its most prestigious banks), and the continual weakening of the U.S.
dollar. However, by quarter end, the plunging dollar had caused both bonds and
stocks to lose some ground.
We are optimistic that the economy will continue to expand at a moderate pace
in 1995, with inflation remaining in check. This, combined with the gradual
strengthening of the economies of U.S. trading partners, is expected to provide
a good foundation for a positive investment environment.
Your Fund's portfolio benefited from the heavy weightings in both the
technology and health care sectors, with the electronics, semiconductor, and
medical suppliers/services industries performing notably well. Your Manager
increased your Fund's weighting in telecommunications throughout the past
quarter, particularly in the wireless communications industry where demand is
strong for both products and services.
Looking forward, as the current outlook for the market remains positive, your
Fund's portfolio is well positioned.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
April 28, 1995
1
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Seligman Frontier Fund
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Largest Portfolio Changes*
During Past Three Months
Shares
-------------------------
Holdings
Additions Increase 3/31/95
- --------- -------- --------
Arch Communications Group .................... 90,000 90,000
California Energy ............................ 110,000 110,000
Canandaigua Wine (Class A) ................... 45,000 70,000
Casey's General Store ........................ 100,000 100,000
Dentsply International ....................... 50,000 50,000
Exar ......................................... 90,000 120,000
Living Centers of America .................... 45,000 45,000
Palmer Wireless .............................. 120,000 120,000
US Xpress Enterprises ........................ 150,000 150,000
Werner Enterprises ........................... 80,000 80,000
Holdings
Reductions Decrease 3/31/95
- ---------- -------- --------
Brothers Gourmet Coffees ....................... 87,400 --
Ceridian ....................................... 44,200 --
Corporate Express .............................. 60,000 --
Integrated Device Technology ................... 16,400 40,000
Integrated Silicon Systems ..................... 41,700 --
Standard Microsystems .......................... 53,900 --
Sunglass Hut ................................... 30,000 --
Viewlogic Systems .............................. 67,300 --
Vivra .......................................... 27,000 --
Western Digital ................................ 84,600 --
- ----------
* Largest portfolio changes from the previous quarter to the current quarter are
based on cost of purchases and proceeds from sales of securities.
Major Portfolio Holdings
at March 31, 1995
Security Value
- -------- ----------
Electronics for Imaging ................................. $4,665,375
Fusion Systems .......................................... 3,272,500
Heritage Media (Class A) ................................ 3,090,000
AGCO .................................................... 2,981,250
Canandaigua Wine (Class A) .............................. 2,922,500
Nu-Kote Holdings (Class A) .............................. 2,890,625
SunGard Data Systems .................................... 2,763,750
Exar .................................................... 2,565,000
T. Rowe Price ........................................... 2,537,500
Electroglas ............................................. 2,392,500
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Long-Term Investment Results
Average Annual Total Returns
March 31, 1995
Class A*
One Five Ten
Year Years Years
------ ------ ------
With Sales Charge 11.32% 17.70% 15.65%
Without Sales Charge 16.88 18.86 16.21
Class D**
Since
One Inception
Year 5/3/93
------ ---------
With CDSL 14.55% n/a
Without CDSL 15.55 22.76%
* The maximum initial sales charge for Class Ashares is 4.75%. No adjustment
was made to 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 Class A
shares.
** The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL")imposed
on certain shares redeemed within one year of purchase.
----------
These rates of return reflect changes in prices and assume that all
distributions within the period are reinvested in additional shares. The rates
of return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
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2
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Portfolio of Investments March 31, 1995
- --------------------------------------------------------------------------------
Shares Value
------ -----
Common Stocks--87.7%
Advertising--3.9%
Dimac* ................................... 150,000 $ 2,137,500
Heritage Media (Class A)* ................ 120,000 3,090,000
------------
5,227,500
------------
Apparel--3.7%
Cygne Designs* ........................... 130,000 1,495,000
Nautica Enterprises* ..................... 70,000 2,196,250
St. John Knits* .......................... 35,000 1,277,500
------------
4,968,750
------------
Broadcasting--4.3%
EZ Communications (Class A)* ............. 94,000 1,562,750
Jacor Communications* .................... 140,000 1,872,500
United Video Satellite
Group (Class A) ....................... 90,000 2,373,750
------------
5,809,000
------------
Business Goods and Services--3.5%
Interim Services* ........................ 60,000 1,781,250
Nu-Kote Holdings (Class A)* .............. 125,000 2,890,625
------------
4,671,875
------------
Capital Goods--9.5%
Dorsey Trailer* .......................... 120,000 1,230,000
DT Industries ............................ 190,000 2,232,500
Fusion Systems* .......................... 110,000 3,272,500
Greenfield Industries .................... 80,000 2,250,000
Oak Industries ........................... 80,000 2,060,000
Wolverine Tube* .......................... 70,000 1,750,000
------------
12,795,000
------------
Communications--5.2%
Arch Communications Group* ............... 90,000 1,738,125
Aspect Telecommunications* ............... 30,000 1,095,000
Cellular Communications Intl.* ........... 15,000 712,500
Palmer Wireless* ......................... 120,000 1,725,000
Pronet* .................................. 95,000 1,715,937
------------
6,986,562
------------
Computer Software and Services--4.0%
Bisys Group* ............................. 65,000 1,462,500
SPS Transaction Services* ................ 33,000 1,155,000
SunGard Data Systems ..................... 60,000 2,763,750
------------
5,381,250
------------
Consumer Goods--1.0%
Duracraft* ............................... 39,100 1,363,612
------------
Drugs and Health Care--5.2%
Community Psychiatric Centers* ........... 100,000 1,287,500
Lincare Holdings* ........................ 65,000 1,917,500
Living Centers of America* ............... 45,000 1,693,125
Protein Design Labs* ..................... 105,000 2,119,688
------------
7,017,813
------------
Electronics--16.7%
Altera* .................................. 40,000 2,230,000
Cognex ................................... 75,000 2,137,500
Cypress Semiconductor* ................... 80,000 2,230,000
Electroglas* ............................. 55,000 2,392,500
Electronics for Imaging* ................. 87,000 4,665,375
Exar* .................................... 120,000 2,565,000
Integrated Device Technology* ............ 40,000 1,482,500
Lam Research* ............................ 35,000 1,570,625
Sanmina* ................................. 56,500 1,829,188
Xilinx* .................................. 20,000 1,352,500
------------
22,455,188
------------
Farm Equipment--2.2%
AGCO ..................................... 90,000 2,981,250
------------
Financial Services--6.4%
Commerce Bancorp ......................... 90,000 1,518,750
Leasing Solutions* ....................... 170,000 1,689,375
T. Rowe Price ............................ 70,000 2,537,500
Roosevelt Financial Group ................ 99,200 1,562,400
World Acceptance* ........................ 50,000 1,293,750
------------
8,601,775
------------
Food--2.2%
Canandaigua Wine (Class A)* .............. 70,000 2,922,500
------------
Medical Products and Technology--4.4%
Dentsply International ................... 50,000 1,743,750
Patterson Dental* ........................ 64,300 1,583,387
Sullivan Dental Products* ................ 100,000 1,600,000
Sybron International* .................... 26,700 961,200
------------
5,888,337
------------
Oil and Gas--2.5%
Coflexip ................................. 70,000 1,925,000
Pogo Producing ........................... 70,000 1,426,250
------------
3,351,250
------------
Restaurants--1.6%
International House of Pancakes* ......... 75,000 2,184,375
------------
3
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Portfolio of Investments (continued) March 31, 1995
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Shares Value
------ -----
Retail Trade--4.1%
Casey's General Store .................... 100,000 $ 1,575,000
Central Tractor Farm & Country* .......... 100,000 1,250,000
Ernst Home Center* ....................... 85,000 1,083,750
General Nutrition Companies* ............. 60,000 1,650,000
------------
5,558,750
------------
Specialty Chemicals--2.1%
Airgas* .................................. 50,000 1,325,000
Sealed Air* .............................. 35,000 1,509,375
------------
2,834,375
------------
Transportation--3.2%
Transport Corp. of America* .............. 113,200 1,266,425
US Xpress Enterprises* ................... 150,000 1,387,500
Werner Enterprises ....................... 80,000 1,600,000
------------
4,253,925
------------
Utilities--2.0%
California Energy* ....................... 110,000 1,760,000
Trigen Energy ............................ 48,000 960,000
------------
2,720,000
------------
Total Common Stocks
(Cost $100,465,758 ) ................. 117,973,087
------------
Principal
Amount Value
--------- -----
Short-Term Holdings--11.7%
Canadian Imperial Bank of
Commerce, Grand Cayman
Fixed Time Deposit
65/16%, 4/3/95 ........................ $5,707,000 $ 5,707,000
First National Bank of Chicago,
Grand Cayman Fixed Time
Deposit 63/4%, 4/3/95 ................. 5,000,000 5,000,000
National Westminster Bank,
Grand Cayman Fixed Time
Deposit 61/8%, 4/3/95 ................. 5,000,000 5,000,000
------------
Total Short-Term Holdings
(Cost $15,707,000) ....................................... 15,707,000
------------
Total Investments--99.4%
(Cost $116,172,758) ...................................... 133,680,087
Other Assets Less
Liabilities--0.6% ........................................ 823,401
------------
Net Assets--100.0% .......................................... $134,503,488
============
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* Non-income producing security.
See notes to financial statements.
4
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Statement of Assets and Liabilities March 31, 1995
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<TABLE>
<S> <C> <C>
Assets:
Investments, at value:
Common stocks (cost $100,465,758) ........................................... $117,973,087
Short-term holdings (cost $15,707,000) ...................................... 15,707,000
------------
$133,680,087
Cash ........................................................................... 696,267
Receivable for Capital Stock sold .............................................. 4,197,247
Receivable for securities sold ................................................. 1,282,489
Expenses prepaid to shareholder service agent .................................. 34,224
Receivable for dividends and interest .......................................... 33,917
Other .......................................................................... 19,719
------------
Total Assets ................................................................... 139,943,950
------------
Liabilities:
Payable for securities purchased ............................................... 4,999,102
Payable for Capital Stock repurchased .......................................... 251,403
Accrued expenses, taxes, and other ............................................. 189,957
------------
Total Liabilities .............................................................. 5,440,462
------------
Net Assets ..................................................................... $134,503,488
============
Composition of Net Assets:
Capital Stock, at par ($0.10 par value; 50,000,000 shares authorized;
12,146,664 shares outstanding):
Class A ..................................................................... $ 850,237
Class D ..................................................................... 364,429
Additional paid-in capital ..................................................... 116,068,603
Accumulated net investment loss ................................................ (355,327)
Undistributed net realized gain ................................................ 68,217
Net unrealized appreciation of investments ..................................... 17,507,329
------------
Net Assets ..................................................................... $134,503,488
============
Net Asset Value per share:
Class A ($94,895,123 / 8,502,371 shares) .................................... $11.16
======
Class D ($39,608,365 / 3,644,293 shares) .................................... $10.87
======
</TABLE>
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See notes to financial statements.
5
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Statement of Operations For the Six Months Ended March 31, 1995
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<TABLE>
<S> <C> <C>
Investment income:
Interest ....................................................................... $ 312,057
Dividends ...................................................................... 77,379
----------
Total investment income ........................................................ $ 389,436
Expenses:
Management fee ................................................................. 327,453
Shareholder account services ................................................... 152,887
Distribution and service fees .................................................. 130,902
Registration ................................................................... 39,438
Auditing and legal fees ........................................................ 20,531
Custody and related services ................................................... 13,518
Directors' fees and expenses ................................................... 12,508
Shareholder reports and communications ......................................... 9,704
Miscellaneous .................................................................. 3,513
----------
Total expenses ................................................................. 710,454
----------
Net investment loss ............................................................ (321,018)
Net realized and unrealized gain on investments:
Net realized gain on investments ............................................... 2,284,227
Net change in unrealized appreciation of investments ........................... 7,425,448
----------
Net gain on investments ........................................................ 9,709,675
----------
Increase in net assets from operations ......................................... $9,388,657
==========
</TABLE>
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See notes to financial statements.
6
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Statements of Changes in Net Assets
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<TABLE>
<CAPTION>
Six Months Ended Year Ended
3/31/95 9/30/94
---------------- ----------
<S> <C> <C>
Operations:
Net investment loss ........................................................... $ (321,018) $ (511,703)
Net realized gain on investments .............................................. 2,284,227 7,083,185
Net change in unrealized appreciation of investments .......................... 7,425,448 (1,269,713)
------------ ------------
Increase in net assets from operations ........................................ 9,388,657 5,301,769
------------ ------------
Distributions to shareholders:
Net realized gain on investments:
Class A .................................................................... (7,039,282) (7,595,277)
Class D .................................................................... (1,338,879) (243,455)
------------ ------------
Decrease in net assets from distributions ..................................... (8,378,161) (7,838,732)
------------ ------------
</TABLE>
Capital share transactions:
<TABLE>
<CAPTION>
Shares
--------------------------------
Six Months Ended Year Ended
3/31/95 9/30/94
---------------- ----------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A ............................. 3,148,517 1,149,853 33,439,193 12,717,598
Class D ............................. 2,757,479 753,094 28,388,302 8,168,738
Exchanged from associated Funds:
Class A ............................. 948,838 422,026 10,186,854 4,766,454
Class D ............................. 381,307 41,042 3,811,138 436,688
Shares issued in payment of gain
distributions:
Class A ............................. 630,353 694,769 6,606,096 7,302,029
Class D ............................. 125,619 21,147 1,286,339 221,199
--------- --------- ------------ -----------
Total .................................. 7,992,113 3,081,931 83,717,922 33,612,706
--------- --------- ------------ -----------
Cost of shares repurchased:
Class A ............................. (359,474) (419,801) (3,791,803) (4,586,161)
Class D ............................. (54,516) (15,175) (567,672) (161,528)
Exchanged into associated Funds:
Class A ............................. (896,977) (181,131) (9,785,185) (2,054,292)
Class D ............................. (382,880) (58,422) (3,876,198) (633,007)
--------- --------- ------------ -----------
Total .................................. (1,693,847) (674,529) (18,020,858) (7,434,988)
--------- --------- ------------ -----------
Increase in net assets from capital
share transactions .................. 6,298,266 2,407,402 65,697,064 26,177,718
========= ========= ------------ -----------
Increase in net assets ................. 66,707,560 23,640,755
Net Assets:
Beginning of period .................... 67,795,928 44,155,173
------------ -----------
End of period .......................... $134,503,488 $67,795,928
============ ===========
</TABLE>
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See notes to financial statements.
7
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Notes to Financial Statements
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1. Effective May 3, 1993, Seligman Frontier Fund, Inc. (the "Fund") began
offering two classes of shares. All shares existing prior to May 3, 1993, have
been classified as Class A shares. Class A shares are sold with an initial sales
charge of up to 4.75% and a continuing service fee of up to 0.25% on an annual
basis. Class D shares are sold without an initial sales charge but are subject
to a higher distribution fee and contingent deferred sales load ("CDSL") of 1%
imposed on certain redemptions made within one year of purchase. The two classes
of shares represent interests in the same portfolio of investments, have the
same rights and are generally identical in all respects except that each class
bears its separate distribution and certain class expenses and has exclusive
voting rights with respect to any matter to which a separate vote of any class
is required.
2. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. Investments in stocks are valued at current market values or, in their
absence, at fair value determined in accordance with procedures approved by
the Board of Directors. Securities traded on national exchanges are valued at
last sales prices or, in their absence and in the case of over-the-counter
securities, a mean of bid and asked prices. Short-term holdings maturing in
60 days or less are valued at amortized cost.
b. There is no provision for federal income or excise tax. The Fund has elected
to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Dividends receivable and payable are recorded on ex-dividend dates.
Interest income is recorded on an accrual basis.
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 proportion of the value of shares outstanding of each
class. Class-specific expenses, which include distribution and service fees
and any other items that can be specifically attributed to a particular
class, are charged directly to such class.
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 realized capital gain for federal
income tax purposes. Where such differences are permanent in nature, they are
reclassified in the components of net assets based on their ultimate
characterization for federal income tax purposes. Any such reclassification
will have no effect on net assets, results of operations, or net asset value
per share of the Fund.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended March 31, 1995, amounted to $80,256,545
and $30,016,258, respectively.
At March 31, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio securities
amounted to $19,721,720 and $2,214,391, respectively.
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities. Compensation of
all officers of the Fund, all directors of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund and the Manager is
8
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- --------------------------------------------------------------------------------
paid by the Manager. The Manager receives a fee, calculated daily and payable
monthly, equal to 0.75% per annum of the Fund's average daily net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the Fund's shares, and an affiliate of the Manager, received
commissions of $113,237 from sales of Class A shares after concessions of
$908,535 were paid to dealers.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares under which service organizations
can enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis, payable quarterly, of average daily net assets
of Class A shares attributable to the particular service organizations for
providing personal services and/or the maintenance of shareholder accounts. The
Distributor charges such fees to the Fund pursuant to the Plan. For the six
months ended March 31, 1995, fees paid aggregated $33,892, or 0.10% per annum of
average daily net assets of Class A shares.
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class D shares for which the organizations are responsible and
fees for providing other distribution assistance of up to 0.75% on an annual
basis of such average daily net assets. Such fees are paid monthly by the Fund
to the Distributor pursuant to the Plan. For the six months ended March 31,
1995, fees paid amounted to $97,010, or 1% per annum of the average daily net
assets of Class D shares.
The Distributor is entitled to retain any CDSL imposed on certain redemptions
occurring within one year of purchase. For the six months ended March 31, 1995,
such charges amounted to $4,204.
Seligman Data Corp., which is owned by certain associated investment
companies, charged the Fund at cost $152,887 for shareholder account services.
Certain officers and directors of the Fund are officers or directors of the
Manager, Seligman Financial Services, Inc., and/or Seligman Data Corp.
Fees of $6,500 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at March 31, 1995, of $37,605 is
included in other liabilities.
5. Class-specific expenses charged to Class A and Class D during the six months
ended March 31, 1995, which are included in the corresponding captions of the
Statement of Operations, were as follows:
Class A Class D
------- -------
Distribution and service fees ......... $33,892 $97,010
Registration .......................... 5,254 4,678
Shareholder reports and
communications ..................... 1,271 744
9
<PAGE>
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Financial Highlights
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from the Fund's beginning net asset value to
the ending net asset value so that they can understand what effect the
individual items have on their investment assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item as disclosed in the financial statements
to their equivalent per share amounts.
The total return based on net asset value measures the Fund's performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset value,
and then sold their shares at the net asset value per share on the last day of
the period. The total return computations do not reflect any sales charges
investors may incur in purchasing or selling shares of the Fund. The total
returns for periods of less than one year are not annualized.
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------
Six Months Year Ended September 30
Ended -----------------------------------------------
3/31/95 1994 1993 1992 1991 1990
---------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ........... $11.62 $12.83 $10.22 $10.71 $ 7.01 $ 8.99
------ ------ ------ ------ ------ ------
Net investment loss ............................ (0.03) (0.08) (0.03) (0.07) (0.03) --
Net realized and unrealized
investment gain (loss) ...................... 0.96 1.10 4.54 0.58 3.76 (1.98)
------ ------ ------ ------ ------ ------
Increase (decrease) from
investment operations ....................... 0.93 1.02 4.51 0.51 3.73 (1.98)
Dividends paid ................................. -- -- -- -- (0.01)** --
Distributions from net gain realized ........... (1.39) (2.23) (1.90) (1.00) (0.02) --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value ..... (0.46) (1.21) 2.61 (0.49) 3.70 (1.98)
------ ------ ------ ------ ------ ------
Net asset value, end of period ................. $11.16 $11.62 $12.83 $10.22 $10.71 $ 7.01
====== ====== ====== ====== ====== ======
Total return based on net asset value .......... 8.73% 9.79% 50.67% 4.91% 53.34% (22.02)%
Ratios/Supplemental Data:
Expenses to average net assets ................. 1.42%+ 1.34% 1.25% 1.37% 1.28% 1.26%
Net investment loss to average net assets ...... (0.54)%+ (0.87)% (0.27)% (0.71)% (0.35)% --
Portfolio turnover ............................. 38.26% 124.76% 129.13% 129.46% 38.56% 38.55%
Net assets, end of period (000's omitted) ...... $94,895 $58,478 $43,188 $27,178 $23,449 $17,127
</TABLE>
- ----------
See footnotes on page 11.
10
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class D
-------------------------------------------
Six Months Year 5/3/93*
Ended Ended to
3/31/95 9/30/94 9/30/93
---------- ------- --------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $11.40 $12.80 $10.12
------ ------ ------
Net investment loss (0.07) (0.23) (0.04)
Net realized and unrealized investment gain 0.93 1.06 2.72
------ ------ ------
Increase (decrease) from investment operations 0.86 0.83 2.68
Dividends paid -- -- --
Distributions from net gain realized (1.39) (2.23) --
------ ------ ------
Net increase (decrease) in net asset value (0.53) (1.40) 2.68
------ ------ ------
Net asset value, end of period $10.87 $11.40 $12.80
====== ====== ======
Total return based on net asset value 8.25% 8.06% 26.48%
Ratios/Supplemental Data:
Expenses to average net assets 2.37%+ 2.72% 2.24%+
Net investment loss to average net assets (1.42)%+ (2.25)% (1.94)%+
Portfolio turnover 38.26% 124.76% 129.13%++
Net assets, end of period (000's omitted) $39,608 $9,318 $967
</TABLE>
- ----------
The per share data for the fiscal years 1990 through 1992 have been restated to
reflect the 2-for-1 stock split effected on April 16, 1992, as a 100% stock
dividend. The per share data for the year ended September 30, 1994, and the six
months ended March 31, 1995, are based on average shares outstanding for the
periods.
* Commencement of offering of Class D shares.
** Excess of taxable dividend over net investment income was charged against
additional paid-in capital.
+ Annualized.
++ For the year ended September 30, 1993.
See notes to financial statements.
11
<PAGE>
================================================================================
Report of Independent Auditors
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Frontier Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Frontier Fund, Inc. as of March 31,
1995, the related statements of operations for the six months then ended and of
changes in net assets for the six months then ended and for the year ended
September 30, 1994, and the financial highlights for the periods presented.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1995, 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 Seligman Frontier
Fund, Inc. as of March 31, 1995, the results of its operations, the changes in
its net assets, and the financial highlights for the respective stated periods,
in conformity with generally accepted accounting principles.
/s/ DELOITTE & TOUCHE LLP
---------------------
New York, New York
April 28, 1995
12
<PAGE>
================================================================================
Board of Directors
- --------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
Alice S. Ilchman 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
John E. Merow
Partner, Sullivan & Cromwell, Attorneys
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, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
Douglas R. Nichols, Jr. 2
Management Consultant
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
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
Herman J. Schmidt 2
Director, H.J. Heinz Company
Director, HON Industries, Inc.
Director, MAPCO, Inc.
Ronald T. Schroeder 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
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
Managing Director, J. & W. Seligman & Co. Incorporated
- ----------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
13
<PAGE>
================================================================================
Executive Officers
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Ronald T. Schroeder
President
Paul H. Wick
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) 445-1777 Retirement Plan Services
(800) 622-4597 24-Hour Automated Telephone Access Service
14
<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 Frontier Fund, Inc., which contains information about the sales
charges, management fee, and other costs. Please read the prospectus carefully
before investing or sending money.
EQFR3b 3/95
