Supplement dated September 21, 1995, the Prospectus dated May 1, 1995
of the High-Yield Bond Series of Seligman High Income Fund Series (the "Fund")
Today the Fund's Trustees unanimously approved and recommended to
shareholders for approval at a special meeting of shareholders to be held on
December 12, 1995, proposed amendments to the Management Agreement between the
Fund and J. & W. Seligman & Co. Incorporated (the "Manager"). The proposed
amendments would revise the fee schedule in the Management Agreement as follows:
pursuant to a new schedule of management fees which would apply, subject to
shareholder approval, effective January 1, 1996, the Fund would pay a management
fee equal to an annual rate of 0.65% on the first $1 billion of average daily
net assets of the Fund and 0.55% on the average daily net assets of the Fund in
excess of $1 billion. The current practice of computing management fees daily
and paying them monthly will remain unchanged.
The following replaces the "Annual Series Operating Expense" table and the
"Example" located on page 2 of the Fund's prospectus:
<TABLE>
<CAPTION>
Annual Series Operating Expenses for 1994 Class A Class D
(as a percentage of average net assets)
<S> <C> <C>
Management Fees.............................................................. .65% .65%
12b-1 Fees................................................................... .21% 1.00%
Other Expenses............................................................... .42% .67%
---- -----
Total Fund Operating Expenses................................................ 1.28% 2.34%
===== =====
<CAPTION>
Example 1 year 3 years 5 years 10 years
------ ------- ------- --------
You 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:
<S> <C> <C> <C> <C>
Class A......................................................................... $70 $86 $114 $195
Class D......................................................................... $34+ $73 $125 $268
</TABLE>
This 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%
annual return used in this example is a hypothetical rate.
+ Assuming (i) 5% annual return and (ii) no redemption at the end of year
one, the expenses on a $1,000 investment would be $24.
The current fee arrangements with the Manager are described in the
Prospectus under the section entitled "Management Services."
