Supplement, dated May 25, 1995, to the Prospectus, dated May 1, 1995, of
Seligman High-Income Fund Series (the "Fund")
The Fund may invest up to 10% of its total assets (taken at cost), but
not more than 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. The Fund may purchase restricted
securities that can be offered and sold to "qualified institutional buyers"
under Rule 144A of the 1933 Act, and the Fund's Board of Directors may
determine, when appropriate, that specific Rule 144A securities are liquid and
not subject to the limitation on illiquid securities. The Board of Directors may
also delegate the responsibilities of determining the liquidity of Rule 144A
securities to the Manager. Should such a determination be made, the security
will be carefully monitored (focusing on such factors, among 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 restricted securities offered and sold under Rule 144
A will develop. This investment practice could have the effect of increasing the
level of illiquidity in the Fund to the extent that qualified institutional
buyers become for a time uninterested in purchasing Rule 144A securities.
TXS-5/95
