- --------------------------------------------------------
Seligman
New Jersey
Tax-Exempt
Fund, Inc.
- --------------------------------------------------------
8th Annual Report
September 30, 1995
- --------------------------------------------------------
(JWS LOGO GOES HERE)
To the Shareholders
We are pleased to update you on Seligman New Jersey Tax-Exempt Fund for
the fiscal year ended September 30, 1995.
During the past 12 months, total dividends for Class A shares were
$0.391 per share. The net asset value of Class A shares was $7.59 per
share on September 30, up from $7.40 a year ago. For Class D shares, total
dividends were $0.332 per share. The net asset value of Class D shares was
$7.67 per share on September 30, up from $7.48 a year ago. A capital gain
distribution of $0.103 per share was paid on November 17, 1994, to Class A
and D shareholders of record November 10, 1994.
The past 12 months have been a particularly turbulent period for fixed-
income markets. During the fourth quarter of 1994, a strengthening economy
continued to fuel fears of an acceleration in the inflation rate. By mid-
November, municipal bond yields had climbed to their highest levels since
1991. Investors, until now conspicuous by their absence, were attracted by
higher yields and cautiously began buying. The municipal market, however,
was still trying to absorb an oversupply of inventory as well as
attempting to overcome the aftershocks of the Orange County, California,
debacle and thus improved at a slower rate than the U.S. Treasury market.
As 1994 came to a close, the bond market recovery was firmly under way.
The Federal Reserve Board's (FRB) decision on February 1 to once again
raise the federal funds rate helped to sustain the rally by boosting
investor confidence in the FRB's ability to contain inflation.
The U.S. economy finally began to exhibit signs of moderating during
the second quarter of 1995, spurring further declines in long-term yields.
The FRB, encouraged by economic reports, voted on July 6 to lower the
federal funds rate in order to minimize the risk of a recession. While the
bond markets initially reacted positively to this news, it wasn't long
before the next round of economic reports proved surprisingly robust,
prompting speculation that the economy was not as weak as believed. Long-
term yields reversed their decline and spiked sharply, dashing hopes of an
imminent FRB easing. The municipal market began to improve in late August
as signs of economic strength abated. By September 30, long-term yields
were essentially unchanged from a year ago.
For much of the past year, municipal market participants have been
focusing on tax reform legislation. Investors, concerned about the impact
on the tax-exempt status of municipal securities, have been demanding
higher yields as compensation. Currently, long-term municipal bonds,
compared with taxable bonds, are the most attractive they have been all
year.
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.
For any additional information about Seligman New Jersey Tax-Exempt
Fund, or your investment in its shares, please write or call using the
toll-free telephone numbers listed on page 15 of this report.
By order of the Board of Directors,
/s/ William Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
November 3, 1995
<PAGE>
Seligman New Jersey Tax-Exempt Fund, Inc.
Highlights September 30, 1995 Class A Class D
Net Assets (millions) $73.6 $1.2
Yield* 4.14% 3.57%
Dividends** $0.391 $0.332
Capital Gain Distributions** $0.103 $0.103
Net asset value per share $7.59 $7.67
Maximum offering price per share $7.97 $7.67
Moody's/S&P Ratings+
Aaa/AAA 69%
Aa/AA 15
A/A 13
Baa/BBB 3
Holdings by Market Sector(dagger)
Revenue Bonds 77%
General Obligation Bonds 23
Weighted Average Maturity (years) 18.8
*Current yield representing the annualized yield for the 30-day period
ended September 30, 1995.
**Represents per share amount paid or declared during the year ended
September 30, 1995.
+Percentages based on current market value of long-term holdings.
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. A small portion of the Fund's income dividends may be
subject to applicable state and local taxes and to the federal alternative
minimum tax. Past performance is not indicative of future investment
results.
<PAGE>
Annual Performance Overview
The following is a biography of your Portfolio Manager, a discussion with
him regarding Seligman New Jersey Tax-Exempt Fund, and a chart and table
comparing your Fund's performance to the performance of the Lehman
Brothers Municipal Bond Index.
Your Portfolio Manager
(Photo of Thomas G. Moles goes here)
Thomas G. Moles is a Managing Director of J. & W. Seligman & Co.
Incorporated, as well as President and Senior Portfolio Manager of
Seligman Select Municipal Fund and Seligman Quality Municipal Fund, and
Vice President and Senior Portfolio Manager of the Seligman tax-exempt
mutual funds which include 19 separate portfolios. He is responsible for
more than $2 billion in tax-exempt securities. Mr. Moles, with more than
25 years of experience, has spearheaded Seligman's tax-exempt efforts
since joining the firm in 1983.
Factors Affecting Seligman New Jersey Tax-Exempt Fund
"In general, the investment environment for municipal securities in 1995
was much more advantageous than in 1994. Looking back, interest rates
continued to move higher during the fourth quarter of 1994 as negative
market sentiment prevailed. The net asset values on long-term municipal
bond mutual funds, including your Fund, declined as a result. The
municipal market was further impacted by the Orange County, California,
bankruptcy, which undermined confidence in the market.
"During the first half of 1995, yields on municipal bonds trended lower as
the economy exhibited signs of moderating. The municipal market, however,
underperformed the U.S. Treasury market due to concerns regarding tax
reform. During the third quarter, stronger-than-expected economic reports
caused a brief spike in interest rates. By September 30, however, the
overall decline in long-term yields over the past 12 months had caused the
net asset value of your Fund to improve."
Your Manager's Investment Strategy
"For much of the past year, there has been little difference between
yields on 20-year and 30-year municipal bonds. We took advantage of the
narrow yield spread and shortened maturities where opportunities allowed.
By implementing this strategy, the Fund was able to maintain yields while
lessening volatility.
"As the bond market gradually improved, your Fund assumed a less defensive
posture. Shorter-term prerefunded positions were reduced and replaced with
long-term bonds, as long-term bonds generally realize greater price
appreciation than shorter-term bonds in a declining interest rate
environment.
"The Fund continues to concentrate new purchases in higher-quality
municipal bonds. The market has not been offering enough of an additional
yield on lower-rated bonds to compensate for their increased risk. In
addition, the Fund has focused on bonds issued to provide for essential
services, such as water and sewer facilities, transportation projects,
etc. These bonds generally offer increased security because revenues
derived from the projects are often pledged as repayment for the principal
and interest on the bonds."
Looking Ahead
"The municipal market faces many challenges in the months to come. With
the Federal government shifting more and more responsibilities to
individual states, we are concerned about the impact on state budgets.
Additionally, the possibility exists that future tax reform legislation
may affect the tax-exempt status of municipal securities. At present,
however, tax reform is not a consideration in our decision making process.
We will continue to stay abreast of the latest developments and adjust our
strategy accordingly. Despite the challenges, we remain optimistic about
the prospects for the municipal market. We believe a moderating economy
and a vigilant Federal Reserve Board should keep inflation in check and
prevent a repeat of the dramatic interest rate increases that occurred in
1994."
<PAGE>
Performance Comparison Chart and Table September 30, 1995
This chart compares a $10,000 hypothetical investment made in Seligman New
Jersey Tax-Exempt Fund Class A shares, with and without the maximum
initial sales charge of 4.75%, since inception on February 16, 1988,
through September 30, 1995, to a $10,000 hypothetical investment made in
the Lehman Brothers Municipal Bond Index (Lehman Index) for the same
periods. The performance of Seligman New Jersey Tax-Exempt Fund Class D
shares is not shown in this chart but is included in the table below. It
is important to keep in mind that the Lehman Index excludes the effects of
any fees or sales charges, and does not reflect state-specific bond market
performance.
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman New Jersey Tax-Exempt Fund
Class A with Class A without Lehman
sales charge sales charge Index
2/16/88 $9,520.00 $10,000.00 $10,000.00
3/31/88 $9,093.00 $9,552.00 $9,883.50
6/30/88 $9,402.00 $9,876.00 $10,075.11
9/30/88 $9,707.00 $10,196.00 $10,333.43
12/31/88 $10,013.00 $10,518.00 $10,526.08
3/31/89 $10,110.00 $10,620.00 $10,595.79
6/30/89 $10,747.00 $11,289.00 $11,223.00
9/30/89 $10,668.00 $11,206.00 $11,230.81
12/31/89 $11,070.00 $11,628.00 $11,661.72
3/31/90 $11,046.00 $11,603.00 $11,713.96
6/30/90 $11,315.00 $11,886.00 $11,987.46
9/30/90 $11,206.00 $11,771.00 $11,994.49
12/31/90 $11,820.00 $12,416.00 $12,511.84
3/31/91 $12,065.00 $12,673.00 $12,794.67
6/30/91 $12,316.00 $12,937.00 $13,067.79
9/30/91 $12,772.00 $13,416.00 $13,575.64
12/31/91 $13,125.00 $13,787.00 $14,030.81
3/31/92 $13,106.00 $13,767.00 $14,072.51
6/30/92 $13,691.00 $14,381.00 $14,605.90
9/30/92 $14,011.00 $14,717.00 $14,994.54
12/31/92 $14,304.00 $15,026.00 $15,267.36
3/31/93 $14,856.00 $15,605.00 $15,834.40
6/30/93 $15,438.00 $16,216.00 $16,352.50
9/30/93 $15,975.00 $16,781.00 $16,905.21
12/31/93 $16,074.00 $16,885.00 $17,143.02
3/31/94 $15,169.00 $15,934.00 $16,201.97
6/30/94 $15,258.00 $16,027.00 $16,380.33
9/30/94 $15,297.00 $16,068.00 $16,492.57
12/31/94 $15,085.00 $15,846.00 $16,256.88
3/31/95 $16,108.00 $16,920.00 $17,405.48
6/30/95 $16,426.00 $17,254.00 $17,824.74
9/30/95 $16,791.00 $17,638.00 $18,337.23
The table below shows the average annual total returns for the one-year,
five-year, and since-inception periods through September 30, 1995, for
Seligman New Jersey Tax-Exempt Fund 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, 1995, for Seligman New
Jersey Tax-Exempt Fund 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.
<TABLE>
Average Annual Total Returns
<CAPTION>
Since Since
One Five Inception One Inception
Year Years 2/16/88 Year 2/1/94
----- ----- ------- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
Seligman New Jersey Seligman New Jersey
Tax-Exempt Fund Tax-Exempt Fund
Class A with Sales Charge 4.54% 7.37% 7.04% Class D with CDSL 7.79% n/a
Class A without Sales Charge 9.77 8.42 7.73 Class D without CDSL 8.79 1.70%
Lehman Index 11.18 8.86 8.32* Lehman Index 11.18 3.43
*From 2/29/88.
</TABLE>
The performance of Class D shares will be greater than or less than the
performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders. Performance data quoted represent
changes in prices and assume that all distributions within the periods are
invested in additional shares. The investment return and principal value
of an investment will fluctuate so that shares, if redeemed, may be worth
more or less than their original cost. Past performance is not indicative
of future investment results.
<PAGE>
<TABLE>
Portfolio of Investments September 30, 1995
<CAPTION>
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
- ---------- ----------- -----------
<C> <S> <C> <C>
$3,750,000 Bergen County, NJ Utility Authority Water Pollution Control Rev., Zero Coupon Bond
due 12/15/2009 Aaa/AAA $ 1,739,250
2,500,000 Brick Township Municipal Utilities Authority, NJ Rev., 6.50% due 12/1/2012 Aaa/AAA 2,699,475
1,000,000 Delran Sewerage Authority, NJ Subordinated Sewer Rev., 7.50% due 3/1/2013 Aaa/AAA 1,101,820
1,000,000 Hamilton Township Municipal Utilities Authority, NJ Rev., 6% due 8/15/2017 Aaa/AAA 1,010,180
3,000,000 Howell Township, NJ G.O.'s, 6.80% due 1/1/2014 Aaa/AAA 3,248,100
700,000 Lenape, NJ Regional High School District G.O.'s, 7 5/8% due 1/1/2009 Aaa/AAA 853,475
1,250,000 Logan Township, NJ School District Certificates of Participation (Pacificorp Capital, Inc.),
7% due 6/15/2014 Aaa/AAA 1,373,175
1,500,000 Marlboro Township Municipal Utilities Authority Monmouth County, NJ Water Rev.,
6% due 12/1/2018 Aaa/AAA 1,514,295
3,000,000 Mercer County, NJ Improvement Authority Rev. (Resource Recovery Project),
6.70% due 4/1/2013* Aaa/AAA 3,111,990
3,000,000 Morris County, NJ G.O.'s, 5% due 7/15/2011 Aaa/AAA 2,824,620
2,250,000 New Jersey Building Authority State Building Rev. (Garden State Savings Bonds),
Zero Coupon Bond due 6/15/2008 Aa/AA- 1,141,538
1,000,000 New Jersey Building Authority State Building Rev., 7.20% due 6/15/2013 Aa/AA- 1,085,310
500,000 New Jersey Economic Development Authority Rev. (Jersey Central Power &
Light Co. Project), 7.10% due 7/1/2015 Aaa/AAA 556,510
1,000,000 New Jersey Economic Development Authority Water Facilities Rev. (Hackensack Water Co.
Project), 7% due 10/1/2017* NR/A 1,033,600
1,000,000 New Jersey Economic Development Authority Water Facilities Rev. (Hackensack Water Co.
Project), 7% due 1/1/2019 Aaa/AAA 1,050,570
1,000,000 New Jersey Economic Development Authority Water Facilities Rev. (Middlesex Water Co.
Project), 5.20% due 10/1/2022 Aaa/AAA 919,900
3,500,000 New Jersey Economic Development Authority Water Facilities Rev. (New Jersey-American
Water Co., Inc. Project), 5.50% due 6/1/2023* Aaa/AAA 3,346,525
3,000,000 New Jersey Educational Facilities Financing Authority Rev. (Trenton State College),
7.20% due 7/1/2019 Aaa/AAA 3,344,040
1,495,000 New Jersey Health Care Facilities Financing Authority Rev. (Chilton Memorial Hospital),
5% due 7/1/2013 A/A- 1,307,721
1,000,000 New Jersey Health Care Facilities Financing Authority Rev. (St. Clare's Riverside Medical
Center), 7.75% due 7/1/2014 Aaa/AAA 1,079,920
2,000,000 New Jersey Health Care Facilities Financing Authority Rev. (St. Clare's Riverside Medical
Center), 5.75% due 7/1/2014 Aaa/AAA 1,986,180
2,000,000 New Jersey Health Care Facilities Financing Authority Rev. (Hackensack Medical Center),
6 5/8% due 7/1/2017 Aaa/AAA 2,124,060
1,000,000 New Jersey Health Care Facilities Financing Authority Rev. (Holy Name Hospital),
6.75% due 7/1/2020 Aaa/AAA 1,061,860
2,500,000 New Jersey Health Care Facilities Financing Authority Rev. (The Medical Center
at Princeton), 7% due 7/1/2022 Aaa/AAA 2,760,900
2,500,000 New Jersey Health Care Facilities Financing Authority Rev. (Englewood Hospital &
Medical Center), 6.75% due 7/1/2024 Baa/BBB 2,518,600
1,100,000 New Jersey Housing & Mortgage Finance Agency (Home Mortgage Purchase Rev.),
7 7/8% due 10/1/2016 Aaa/AAA 1,152,899
220,000 New Jersey Housing & Mortgage Finance Agency (Home Buyer Rev.),
7.65% due 10/1/2016 Aaa/AAA 236,293
1,000,000 New Jersey Housing & Mortgage Finance Agency (Home Buyer Rev.),
5 3/8% due 4/1/2025* Aaa/AAA 895,070
560,000 New Jersey Housing & Mortgage Finance Agency (Home Buyer Rev.),
7.70% due 10/1/2029* Aaa/AAA 589,803
1,325,000 New Jersey Wastewater Treatment Trust Loan Rev., 7.25% due 5/15/2006 Aa/AA 1,420,387
1,000,000 New Jersey Wastewater Treatment Trust Loan Rev., 7 3/8% due 5/15/2007 Aaa/AAA 1,094,490
1,625,000 New Jersey Wastewater Treatment Trust Loan Rev., 7.25% due 5/15/2007 Aa/AA 1,736,979
2,000,000 Oradell School District, NJ Certificates of Participation, 7.20% due 10/1/2009 Aaa/AAA 2,241,100
1,000,000 Paterson, NJ Water System G.O.'s, 7 1/8% due 7/1/2015 Aaa/AAA 1,065,910
3,000,000 Port Authority of New York & New Jersey Consolidated Rev., 4.75% due 1/15/2029 A1/AA- 2,469,390
3,500,000 Salem County, NJ Improvement Authority Rev. (Correctional Facility
& Courthouse Annex), 5.70% due 5/1/2017 Aaa/AAA 3,448,515
2,500,000 Salem County, NJ Pollution Control Financing Authority Waste Disposal Rev.
(E. I. duPont de Nemours & Co.), 6 1/8% due 7/15/2022* Aa3/AA 2,510,675
1,750,000 South Jersey Port Corporation, NJ Marine Terminal Rev., 6 7/8% due 1/1/2020 NR/A+ 1,813,000
5,000,000 Union County, NJ Improvement Authority Rev. (Correctional Facilities), Zero Coupon
Bond due 6/15/2007 Aaa/AA+ 2,694,200
2,500,000 University of Medicine & Dentistry of New Jersey, 7.20% due 12/1/2019 A/AA 2,757,675
1,000,000 Western Monmouth Utilities Authority, NJ Sewer Rev., 6% due 2/1/2014 Aaa/AAA 1,006,190
-----------
Total Municipal Bonds (Cost $67,975,396)--96.2% 71,926,190
Variable Rate Demand Notes (Cost $1,200,000)--1.6% 1,200,000
Other Assets Less Liabilities--2.2% 1,624,413
-----------
NET ASSETS--100.0% $74,750,603
===========
* 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.
</TABLE>
<PAGE>
<TABLE>
Statement of Assets and Liabilities For the year ended September 30, 1995
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value:
Long-term holdings (cost $67,975,396) $71,926,190
Short-term holdings (cost $1,200,000) 1,200,000 $73,126,190
-----------
Cash 231,780
Interest receivable 1,303,225
Receivable for Capital Stock sold 359,456
Expenses prepaid to shareholder service agent 35,411
Other 9,855
-----------
Total Assets 75,065,917
-----------
Liabilities:
Dividends payable 133,501
Payable for Capital Stock repurchased 56,253
Accrued expenses, taxes, and other 125,560
-----------
Total Liabilities 315,314
-----------
Net Assets $74,750,603
==========
Composition of Net Assets:
Capital Stock, at par ($.001 par value; 50,000,000 shares authorized;
9,845,254 shares outstanding):
Class A $ 9,690
Class D 155
Additional paid-in capital 70,758,980
Undistributed net realized gain 30,984
Net unrealized appreciation of investments 3,950,794
-----------
Net Assets $74,750,603
===========
Net Asset Value per share:
Class A ($73,560,792 (divided by) 9,690,206 shares) $7.59
=====
Class D ($1,189,811 (divided by) 155,048 shares) $7.67
=====
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
Year Ended September 30
----------------------------
1995 1994
----------- -----------
<S> <C> <C>
Operations:
Net investment income $ 3,889,418 $ 4,167,938
Net realized gain on investments 33,365 1,022,309
Net change in unrealized appreciation of investments 2,800,005 (8,662,877)
----------- -----------
Increase (decrease) in net assets from operations 6,722,788 (3,472,630)
----------- -----------
Distributions to shareholders:
Net investment income:
Class A (3,838,302) (4,147,445)
Class D (51,116) (20,493)
Net realized gain on investments:
Class A (1,010,909) (965,694)
Class D (13,739) --
----------- -----------
Decrease in net assets from distributions (4,914,066) (5,133,632)
----------- ------------
<CAPTION>
Capital share transactions:*
Shares
-----------------------
Year Ended September 30
-----------------------
1995 1994
--------- ---------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A 548,270 828,366 4,058,926 6,506,607
Class D 63,760 140,466 466,899 1,083,038
Shares issued in payment of dividends:
Class A 305,485 323,064 2,251,536 2,513,538
Class D 4,801 1,624 35,924 12,377
Exchanged from associated Funds:
Class A 512,716 150,576 3,727,736 1,154,376
Class D 1,613 -- 12,373 --
Shares issued in payment of gain distributions:
Class A 109,013 87,409 742,377 699,267
Class D 1,519 10,467 --
--------- --------- ----------- -----------
Total 1,547,177 1,531,505 11,306,238 11,969,203
--------- ------------ ----------- -----------
Cost of shares repurchased:
Class A (1,428,147) (1,288,638) (10,436,724) (9,918,118)
Class D (48,118) (5,241) (359,695) (39,659)
Exchanged into associated Funds:
Class A (345,862) (115,220) (2,493,426) (886,677)
Class D (316) (5,060) (2,400) (37,852)
--------- ------------ ----------- -----------
Total (1,822,443) (1,414,159) (13,292,245) (10,882,306)
--------- ------------ ----------- -----------
Increase (decrease) in net assets from
capital share transactions (275,266) 117,346 (1,986,007) 1,086,897
========= ============ ----------- -----------
Decrease in net assets (177,285) (7,519,365)
Net Assets:
Beginning of year 74,927,888 82,447,253
----------- ------------
End of year $74,750,603 $74,927,888
=========== ===========
- -------------------
*The Fund began offering Class D shares on February 1, 1994.
See notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
1. Seligman New Jersey Tax-Exempt Fund, Inc. (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 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 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. 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. 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.
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
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 capital
gain for federal income tax purposes. Where such differences are
permanent in nature, they are reclassified in the components of net
assets based on their ultimate characterization for federal income tax
purposes. Any such reclassifications will have no effect on net
assets, results of operations or net asset value per share of the
Fund.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended September 30, 1995, amounted to $3,336,380
and $8,087,718, respectively.
At September 30, 1995, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes, and the tax basis gross unrealized appreciation and depreciation
of investments amounted to $4,616,400 and $665,606, respectively.
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the
affairs of the Fund and provides the necessary personnel and facilities.
Compensation of all officers of the Fund, all directors of the Fund who
are employees or consultants of the Manager, and all personnel of the Fund
and the Manager is paid by the Manager. The Manager's fee, calculated
daily and payable monthly, is equal to 0.50% per annum of the Fund's
average daily net assets. During the year ended September 30, 1995, the
Manager, at its discretion, waived a portion of its fees equal to $34,752.
The management fee reflected in the Statement of Operations represents
0.45% 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 concessions of $18,565 from the sale of Class A shares, after
commissions of $135,667 paid to dealers.
The Fund has an Administration, Shareholder Services and Distribution
Plan (the "Plan") with respect to Class A shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee of up to 0.25% on an annual basis, payable quarterly, of
the average daily net assets of the Class A shares attributable to the
particular service organizations for providing personal services and/or
the maintenance of shareholder accounts. The Distributor charges such fees
to the Fund pursuant to the Plan. For the year ended September 30, 1995,
fees paid aggregated $159,902, or 0.22% per annum of the average daily net
assets of Class A shares.
The Fund has a Plan with respect to Class D shares under which
service organizations can enter into agreements with the Distributor and
receive a continuing fee for providing personal services and/or the
maintenance of shareholder accounts of up to 0.25% on an annual basis of
the average daily net assets of the Class D shares for which the
organizations are responsible, and fees for providing other distribution
assistance of up to 0.75% on an annual basis of such average daily net
assets. Such fees are paid monthly by the Fund to the Distributor pursuant
to the Plan. For the year ended September 30, 1995, fees paid amounted to
$11,520, 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 of Class D shares occurring within one year of purchase. For
the year ended September 30, 1995, such charges amounted to $1,586.
Effective April 1, 1995, Seligman Services, Inc., 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, Seligman Services, Inc. received
commissions of $135 from sales of shares of the Fund. Seligman Services,
Inc. also received distribution and service fees of $4,199, pursuant to
the Plan.
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost $117,394 for shareholder account services.
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 $8,000 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
September 30, 1995, of $30,675 is included in other liabilities. Deferred
fees and related accrued interest are not deductible for federal income
tax purposes until such amounts are paid.
5. Class-specific expenses charged to Class A and Class D during the year
ended September 30, 1995, which are included in the corresponding captions
of the Statement of Operations, were as follows:
Class A Class D
-------- -------
Distribution
and service fees $159,902 $11,520
Registration 894 998
Shareholder reports and
communications 809 7
<PAGE>
Financial Highlights
The Fund's financial highlights are presented below. The per share
operating performance data is designed to allow investors to trace the
operating performance, on a per share basis, from the Fund's beginning net
asset value to the ending net asset value so that they can understand what
effect the individual items have on their investment assuming it was held
throughout the period. Generally, the per share amounts are derived by
converting the actual dollar amounts incurred for each item as disclosed
in the financial statements to their equivalent per share amounts using
average shares outstanding.
The total return based on net asset value measures the Fund's
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 the Fund. The total returns for periods of less than one year
are not annualized.
<TABLE>
Class A Class D
--------------------------------------------------------- ------------------
<CAPTION>
Year Ended September 30 Year 2/1/94*
--------------------------------------------------------- Ended to
1995 1994 1993 1992 1991 9/30/95 9/30/94
----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $7.40 $8.24 $7.74 $7.49 $7.01 $7.48 $8.14
----- ----- ----- ----- ----- ----- -----
Net investment income .39 .41 .42 .44 .44 .33 .23
Net realized and unrealized
investment gain (loss) .29 (.74) .61 .27 .51 .29 (.66)
----- ----- ----- ----- ----- ----- -----
Increase (decrease) from
investment operations .68 (.33) 1.03 .71 .95 .62 (.43)
Dividends paid or declared (.39) (.41) (.42) (.44) (.44) (.33) (.23)
Distributions from net gain realized (.10) (.10) (.11) (.02) (.03) (.10) --
----- ----- ----- ----- ----- ----- -----
Net increase (decrease) in
net asset value .19 (.84) .50 .25 .48 .19 (.66)
----- ----- ----- ----- ----- ----- -----
Net asset value, end of period $7.59 $7.40 $8.24 $7.74 $7.49 $7.67 $7.48
===== ===== ===== ===== ===== ===== =====
Total return based on
net asset value 9.77% (4.25)% 14.02% 9.70% 13.97% 8.79% -5.47%
Ratios/Supplemental Data:
Expenses to average net assets 1.01% .90% 0.86% 0.85% .81% 1.89% 1.75%+
Net investment income to
average net assets 5.29% 5.24% 5.37% 5.74% 6.02% 4.45% 4.37%+
Portfolio turnover 4.66% 12.13% 15.90% 27.13% 14.64% 4.66% 12.13%++
Net assets, end of period
(000's omitted) $73,561 $73,942 $82,447 $74,256 $65,044 $1,190 $986
Without management fee waiver:**
Net investment income per share $.39 $.40 $.40 $.42 $.42 $.33 $.22
Expenses to average net assets 1.06% 1.07% 1.11% 1.10% 1.11% 1.94% 1.87%+
Net investment income to
average net assets 5.24% 5.07% 5.12% 5.49% 6.01% 4.40% 4.25%+
- -----------------
*Commencement of offering of Class D shares.
**The Manager, at its discretion, waived a portion of its fees for the periods presented.
+Annualized.
++For the year ended September 30, 1994.
See notes to financial statements.
</TABLE>
<PAGE>
Report of Independent Auditors
The Board of Directors and Shareholders,
Seligman New Jersey Tax-Exempt Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Seligman New Jersey Tax-Exempt
Fund, Inc. as of September 30, 1995, 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, 1995 by
correspondence with the Fund's custodian. 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 New
Jersey Tax-Exempt Fund, Inc. as of September 30, 1995, the results of its
operations, the changes in its net assets, and the financial highlights
for the respective stated periods, in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche LLP
- -------------------------
DELOITTE & TOUCHE LLP
New York, New York
November 3, 1995
<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, Daniel Industries, 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
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
President
Managing Director,
- ---------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
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>
Seligman Financial Services, Inc.
an affiliate of
JWS LOGO GOES HERE
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 New Jersey Tax-Exempt Fund, Inc., which contains information
about the sales charges, management fee, and other costs. Please read the
prospectus carefully before investing or sending money.
TECNJ2 9/95
