- --------------------------------------------------------------------------------
MID-YEAR REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[LOGO]
June 30, 1995
- --------------------------------------------------------------------------------
<PAGE>
Seligman Portfolios, Inc.
the underlying investment vehicle for
=========================================
TRILLIUM
A VARIABLE
ANNUITY
-----------------------------------------
-----------------------------------------
-----------------------------------------
July 28, 1995
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios,
Inc. (the "Fund"), the underlying investment vehicle for your Trillium variable
annuity, and Canada Life Insurance Company of America, as issuer of The Canada
Life of America Variable Annuity Account 2 (the "Variable Account"), are pleased
to provide the Mid-Year Report for the Variable Account and the Fund for the six
months ended June 30, 1995.
The performance of the 10 sub-accounts of the Variable Account, which
invests in and is based upon the performance of the Fund (adjusted for the
current fees and charges, excluding the CDSL, associated with the Variable
Account), was as follows for the six-month period ended June 30, 1995: the
Capital Sub-Account's total return was 11.69%; the Cash Management Sub-Account's
total return was 1.72%; the Common Stock Sub-Account's total return was 13.00%;
the Communications and Information Sub-Account's total return was 39.51%; the
Fixed Income Securities Sub-Account's total return was 9.76%; the Frontier
Sub-Account's total return was 14.98%; the Global Sub-Account's total return was
0.71%; the Global Smaller Companies Sub-Account's total return was 4.27%; the
High-Yield Bond Sub-Account's (commencement of operations) May 25, 1995, through
June 30, 1995, total return was 0.18%; and the Income Sub-Account's total return
was 9.66%. The Variable Account commenced operations on June 21, 1993. The Fund
was first created in June 1988.
Since we last reported, the recent stream of reports shows that the long
awaited slowdown is under way. The Federal Reserve Board (FRB), concerned that
growth at an accelerated rate would swell inflationary pressures, increased
short-term interest rates seven times, beginning in early 1994. However,
evidence of this current slowdown and moderate inflation led the FRB to lower
rates in early July--the first decrease in three years.
In the financial markets, with signs pointing toward a slowing economy and
prospects favoring declining interest rates, the bond market rallied this past
quarter. Investor demand for equities also continued to be strong, as shown by
the equity market moving to new highs and all broad market indices posting
positive returns.
Looking ahead, the economy is likely to regain strength later this year as
consumers respond to lower interest rates, exports are stimulated by a weaker
dollar, and business capital spending remains strong.
Respectfully,
/s/ D. Allen Loney /s/ William Morris
D. Allen Loney William C. Morris
President Chairman
Canada Life Insurance Company of America J. & W. Seligman & Co. Incorporated
<PAGE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
Statement of Net Assets (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Cash Common Communications
Capital Management Stock and Information
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Assets:
Investment in Seligman Portfolios, Inc., at market
(see Note 3 for cost values) ........................ $1,643,084 $1,953,383 $3,925,644 $11,618,718
Due (to) from Canada Life Insurance Company of
America (Note 6) .................................... (14,015) (2,907) 11,355 (76,622)
Receivable (payable) for investments sold (purchased) . (1,355) (9,935) 8,249 109,514
---------- ---------- ---------- -----------
Net assets ............................................ $1,627,714 $1,940,541 $3,945,248 $11,651,610
========== ========== ========== ===========
Net assets attributable to:
Policyholders' liability reserve ...................... $1,627,714 $1,940,541 $3,945,248 $11,651,610
---------- ---------- ---------- -----------
Net assets ............................................ $1,627,714 $1,940,541 $3,945,248 $11,651,610
========== ========== ========== ===========
Number of units outstanding ........................... 79,670 1,527,985 188,365 803,000
========== ========== ========== ===========
Net asset value per unit .............................. $20.4307 $1.2700 $20.9447 $14.5101
========== ========== ========== ===========
</TABLE>
- ----------------
See accompanying notes.
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Global
Fixed Income Smaller
Securities Frontier Global Companies
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Assets:
Investment in Seligman Portfolios, Inc., at market
(see Note 3 for cost values) ........................ $1,087,300 $2,171,136 $2,143,715 $1,294,838
Due (to) from Canada Life Insurance Company of
America (Note 6) .................................... 2,324 (8,901) (10,677) (2,837)
Receivable (payable) for investments sold (purchased) . 8,332 9,880 23,629 1,752
---------- ---------- ---------- ----------
Net assets ............................................ $1,097,956 $2,172,115 $2,156,667 $1,293,753
========== ========== ========== ==========
Net assets attributable to:
Policyholders' liability reserve ...................... $1,097,956 $2,172,115 $2,156,667 $1,293,753
---------- ---------- ---------- ----------
Net assets ............................................ $1,097,956 $2,172,115 $2,156,667 $1,293,753
========== ========== ========== ==========
Number of units outstanding ........................... 75,940 179,244 190,137 120,235
========== ========== ========== ==========
Net asset value per unit .............................. $14.4582 $12.1182 $11.3427 $10.7602
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
High-Yield
Bond Income
Sub-Account Sub-Account Combined
------------ ------------ ----------
<S> <C> <C> <C>
Net Assets:
Investment in Seligman Portfolios, Inc., at market
(see Note 3 for cost values) ........................ $116,308 $3,195,292 $29,149,418
Due (to) from Canada Life Insurance Company of
America (Note 6) .................................... (2,033) 17,640 (86,673)
Receivable (payable) for investments sold (purchased) . 19 12,769 162,854
-------- ---------- -----------
Net assets ............................................ $114,294 $3,225,701 $29,225,599
======== ========== ===========
Net assets attributable to:
Policyholders' liability reserve ...................... $114,294 $3,225,701 $29,225,599
-------- ---------- -----------
Net assets ............................................ $114,294 $3,225,701 $29,225,599
======== ========== ===========
Number of units outstanding ........................... 11,409 187,471
======== ==========
Net asset value per unit .............................. $10.0179 $17.2064
======== ==========
</TABLE>
- ----------------
See accompanying notes.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Statement of Operations (unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
Cash Common Communications
Capital Management Stock and Information
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net investment income:
Dividend and capital gain distributions ............... $ -- $22,013 $ -- $ --
Less mortality and expense risk charges (Note 6) ...... 3,750 16,016 14,713 92,316
-------- ------- -------- ----------
Net investment income ................................. (3,750) 5,997 (14,713) (92,316)
-------- ------- -------- ----------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on investments ............... (21,831) -- (7,119) 19,184
Net unrealized appreciation (depreciation)
on investments ...................................... 190,359 -- 382,880 1,801,432
-------- ------- -------- ----------
Net realized and unrealized gain on investments ....... 168,528 -- 375,761 1,820,616
-------- ------- -------- ----------
Net increase in net assets
resulting from operations ........................... $164,778 $ 5,997 $361,048 $1,728,300
======== ======= ======== ==========
</TABLE>
- ----------------
*For the period May 25, 1995 (commencement of operations) to June 30, 1995.
See accompanying notes.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Global
Fixed Income Smaller
Securities Frontier Global Companies
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net investment income:
Dividend and capital gain distributions ............... $ -- $ -- $ -- $ --
Less mortality and expense risk charges (Note 6) ..... 5,135 12,931 13,454 5,653
------- -------- ------- -------
Net investment income ................................. (5,135) (12,931) (13,454) (5,653)
------- -------- ------- -------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on investments ............... (4,156) 3,896 (7,737) 1,977
Net unrealized appreciation (depreciation)
on investments ...................................... 98,543 117,243 33,051 28,320
------- -------- ------- -------
Net realized and unrealized gain on investments ....... 94,387 121,139 25,314 30,297
------- -------- ------- -------
Net increase in net assets
resulting from operations ........................... $89,252 $108,208 $11,860 $24,644
======= ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
For the six months ended June 30, 1995
- -----------------------------------------------------------------------------------------------------------------------------------
High-Yield
Bond Income
Sub-Account* Sub-Account Combined
------------ ------------ ---------
<S> <C> <C> <C>
Net investment income:
Dividend and capital gain distributions ............... $ -- $ -- $ 22,013
Less mortality and expense risk charges (Note 6) ..... 72 20,864 184,904
---- -------- ----------
Net investment income ................................. (72) (20,864) (162,891)
---- -------- ----------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on investments ............... -- (1,282) (17,068)
Net unrealized appreciation (depreciation)
on investments ...................................... 316 273,069 2,925,213
---- -------- ----------
Net realized and unrealized gain on investments ....... 316 271,787 2,908,145
---- -------- ----------
Net increase in net assets
resulting from operations ........................... $244 $250,923 $2,745,254
==== ======== ==========
</TABLE>
- ----------------
See accompanying notes.
-- 1 -- & -- 2 --
<PAGE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Cash Management Common Stock
Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- ----------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
----------- ---------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........... $ (3,750) $ 114,890 $ 5,997 $ 10,177 $ (14,713) $ 169,210
Net realized gain (loss) on investments (21,831) (12,916) -- -- (7,119) (1,721)
Unrealized appreciation
(depreciation) on investments ..... 190,359 (124,248) -- -- 382,880 (179,355)
---------- ---------- ---------- -------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations ......... 164,778 (22,274) 5,997 10,177 361,048 (11,866)
---------- ---------- ---------- -------- ---------- ----------
Capital transactions:
Net increase from unit
transactions (Note 5) ............. 322,299 1,071,495 1,392,412 463,427 1,219,749 1,716,567
---------- ---------- ---------- -------- ---------- ----------
Net increase in net assets arising
from capital transactions ......... 322,299 1,071,495 1,392,412 463,427 1,219,749 1,716,567
---------- ---------- ---------- -------- ---------- ----------
Total increase in net assets ........... 487,077 1,049,221 1,398,409 473,604 1,580,797 1,704,701
Net assets, beginning of period ........ 1,140,637 91,416 542,132 68,528 2,364,451 659,750
---------- ---------- ---------- -------- ---------- ----------
Net assets, end of period .............. $1,627,714 $1,140,637 $1,940,541 $542,132 $3,945,248 $2,364,451
========== ========== ========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Communications Fixed Income
and Information Securities Frontier
Sub-Account Sub-Account Sub-Account
------------------------- ------------------------ -------------------------
Six Months 10/11/94* Six Months Year Six Months 10/11/94*
Ended to Ended Ended Ended to
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
------------ --------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........... $ (92,316) $ (875) $ (5,135) $ 35,441 $ (12,931) $ (216)
Net realized gain (loss) on investments 19,184 15 (4,156) (10,205) 3,896 7
Unrealized appreciation
(depreciation) on investments ..... 1,801,432 18,098 98,543 (39,410) 117,243 6,405
----------- -------- ---------- -------- ---------- --------
Net increase (decrease) in net assets
resulting from operations ......... 1,728,300 17,238 89,252 (14,174) 108,208 6,196
----------- -------- ---------- -------- ---------- --------
Capital transactions:
Net increase from unit
transactions (Note 5) ............. 9,428,850 477,222 157,550 656,499 1,941,549 116,162
----------- -------- ---------- -------- ---------- --------
Net increase in net assets arising
from capital transactions ......... 9,428,850 477,222 157,550 656,499 1,941,549 116,162
----------- -------- ---------- -------- ---------- --------
Total increase in net assets ........... 11,157,150 494,460 246,802 642,325 2,049,757 122,358
Net assets, beginning of period ........ 494,460 -- 851,154 208,829 122,358 --
----------- -------- ---------- -------- ---------- --------
Net assets, end of period .............. $11,651,610 $494,460 $1,097,956 $851,154 $2,172,115 $122,358
=========== ======== ========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Global Smaller
Global Companies High-Yield Bond
Sub-Account Sub-Account Sub-Account
------------------------- -------------------------- ---------------
Six Months Year Six Months 10/11/94* 5/25/95*
Ended Ended Ended to to
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95
---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........... $ (13,454) $ 9,277 $ (5,653) $ 279 $ (72)
Net realized gain (loss) on investments (7,737) 6,044 1,977 2 --
Unrealized appreciation
(depreciation) on investments ..... 33,051 (21,540) 28,320 3,794 316
---------- ---------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations ......... 11,860 (6,219) 24,644 4,075 244
---------- ---------- ---------- -------- --------
Capital transactions:
Net increase from unit
transactions (Note 5) ............. 450,416 1,167,854 1,137,641 127,393 114,050
---------- ---------- ---------- -------- --------
Net increase in net assets arising
from capital transactions ......... 450,416 1,167,854 1,137,641 127,393 114,050
---------- ---------- ---------- -------- --------
Total increase in net assets ........... 462,276 1,161,635 1,162,285 131,468 114,294
Net assets, beginning of period ........ 1,694,391 532,756 131,468 -- --
---------- ---------- ---------- -------- --------
Net assets, end of period .............. $2,156,667 $1,694,391 $1,293,753 $131,468 $114,294
========== ========== ========== ======== ========
</TABLE>
- ----------------
*Commencement of operations.
See accompanying notes.
<TABLE>
<CAPTION>
Income
Sub-Account Combined
------------------------ --------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94
---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........... $ (20,864) $ 110,698 $ (162,891) $ 448,881
Net realized gain (loss) on investments (1,282) (15,131) (17,068) (33,905)
Unrealized appreciation
(depreciation) on investments ..... 273,069 (163,064) 2,925,213 (499,320)
---------- ---------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations ......... 250,923 (67,497) 2,745,254 (84,344)
---------- ---------- ----------- ----------
Capital transactions:
Net increase from unit
transactions (Note 5) ............. 1,015,329 1,560,635 17,179,845 7,357,254
---------- --------- ----------- ----------
Net increase in net assets arising
from capital transactions ......... 1,015,329 1,560,635 17,179,845 7,357,254
---------- ---------- ----------- ----------
Total increase in net assets ........... 1,266,252 1,493,138 19,925,099 7,272,910
Net assets, beginning of period ........ 1,959,449 466,311 9,300,500 2,027,590
---------- ---------- ----------- ----------
Net assets, end of period .............. $3,225,701 $1,959,449 $29,225,599 $9,300,500
========== ========== =========== ==========
</TABLE>
-- 3 -- & -- 4 --
<PAGE>
Canada Life of America Variable Annuity Account 2
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization
Canada Life of America Variable Annuity Account 2 ("Variable Annuity Account 2")
was established on February 26, 1993 as a separate investment account of Canada
Life Insurance Company of America ("CLICA") to receive and invest premium
payments under variable annuity policies issued by CLICA. Variable Annuity
Account 2 is registered as a unit investment trust under the Investment Company
Act of 1940, as amended. The assets of Variable Annuity Account 2 are invested
in the shares of Seligman Portfolios, Inc. (the "Fund") a diversified, open-end,
management investment company. Variable Annuity Account 2 has ten sub-accounts,
each of which invests only in the shares of the corresponding portfolio of the
Fund. The assets of Variable Annuity Account 2 are the property of CLICA. The
portion of Variable Annuity Account 2 assets applicable to the policies will not
be charged with liabilities arising out of any other business CLICA may conduct.
2. Significant Accounting Policies
Investments
Investments in shares of the Fund are valued at the reported net asset values of
the respective portfolios. Realized gains and losses are computed on the basis
of average cost. The difference between cost and current market value of
investments owned is recorded as an unrealized gain or loss on investments.
Dividends
Dividends are recorded on the ex-dividend date and reflect the dividends
declared by the Fund from their accumulated net investment income and net
realized investment gains. Dividends in the Cash Management Portfolio are
declared daily and paid monthly. Dividends in the Capital, Common Stock,
Communications and Information, Fixed Income Securities, Frontier, Global,
Global Smaller Companies, High-Yield Bond and Income Portfolios are declared and
paid annually. Dividends paid to the Variable Annuity Account 2 are reinvested
in additional shares of the respective Fund at the net asset value per share.
Federal Income Taxes
Variable Annuity Account 2 is not taxed separately because the operations of
Variable Annuity Account 2 will be included in the Federal income tax return of
CLICA, which is taxed as a "life insurance company" under the provisions of the
Internal Revenue Code.
3. Investments
The investment by Variable Annuity Account 2 in the individual Portfolios of the
Fund is as follows:
<TABLE>
<CAPTION>
Number of Shares Market Price Market Value Cost
---------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Capital 114,901 $14.30 $ 1,643,084 $ 1,592,128
Cash Management 1,953,383 1.00 1,953,383 1,953,383
Common Stock 250,041 15.70 3,925,644 3,797,304
Communications and Information 790,927 14.69 11,618,718 9,799,188
Fixed Income Securities 106,078 10.25 1,087,300 1,053,758
Frontier 177,091 12.26 2,171,136 2,047,488
Global 186,248 11.51 2,143,715 2,107,617
Global Smaller Companies 119,450 10.84 1,294,838 1,262,724
High-Yield Bond 11,596 10.03 116,308 115,992
Income 289,691 11.03 3,195,292 3,130,157
----------- -----------
$29,149,418 $26,859,739
=========== ===========
</TABLE>
4. Security Purchases and Sales
The aggregate cost of purchases and the proceeds from sales of investments are
presented below:
<TABLE>
<CAPTION>
Aggregate Cost of Purchases Proceeds from Sales
--------------------------- -------------------
<S> <C> <C>
Capital $ 643,105 $ 328,297
Cash Management 2,166,234 750,096
Common Stock 1,644,714 454,183
Communications and Information 9,531,185 227,747
Fixed Income Securities 359,502 217,177
Frontier 1,996,841 69,255
Global 786,388 373,579
Global Smaller Companies 1,189,325 56,316
High-Yield Bond 115,992 --
Income 1,607,792 624,350
----------- ----------
$20,041,078 $3,101,000
=========== ==========
</TABLE>
-- 5 --
<PAGE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5. Summary of Changes from Unit Transactions
The following table represents a summary of changes from unit transactions
attributable to contract holders for the periods indicated. The Communications
and Information, Frontier and Global Smaller Companies Sub-Accounts commenced
operations on October 11, 1994. The High-Yield Bond Sub-Account commenced
operations on May 25, 1995.
Six months ended June 30, 1995 Year ended December 31, 1994
------------------------------- -----------------------------
Units Amount Units Amount
--------- ----------- --------- ----------
<S> <C> <C> <C> <C>
Capital
Accumulation Units:
Contract purchases and net transfers in 34,499 $ 646,038 68,845 $1,206,771
Terminated contracts and net transfers out (17,187) (323,739) (11,147) (135,276)
--------- ----------- --------- ----------
17,312 $ 22,299 57,698 $1,071,495
========= =========== ========= ==========
Cash Management
Accumulation Units:
Contract purchases and net transfers in 1,709,424 $ 2,125,069 895,094 $ 919,388
Terminated contracts and net transfers out (615,665) (732,657) (517,005) (455,961)
--------- ----------- --------- ----------
1,093,759 $ 1,392,412 378,089 $ 463,427
========= =========== ========= ==========
Common Stock
Accumulation Units:
Contract purchases and net transfers in 73,063 $ 1,458,842 94,149 $1,729,749
Terminated contracts and net transfers out (12,268) (239,093) (1,785) (13,182)
--------- ----------- --------- ----------
60,795 $ 1,219,749 92,364 $1,716,567
========= =========== ========= ==========
Communications and Information
Accumulation Units:
Contract purchases and net transfers in 775,226 $ 9,658,547 47,541 $ 477,222
Terminated contracts and net transfers out (19,767) (229,697) -- --
--------- ----------- --------- ----------
755,459 $ 9,428,850 47,541 $ 477,222
========= =========== ========= ==========
Fixed Income Securities
Accumulation Units:
Contract purchases and net transfers in 25,943 $ 358,270 60,800 $ 705,025
Terminated contracts and net transfers out (14,617) (200,720) (11,270) (48,526)
--------- ----------- --------- ----------
11,326 $ 157,550 49,530 $ 656,499
========= =========== ========= ==========
Frontier
Accumulation Units:
Contract purchases and net transfers in 171,932 $ 1,989,764 11,609 $ 116,162
Terminated contracts and net transfers out (4,297) (48,215) -- --
--------- ----------- --------- ----------
167,635 $ ,941,549 11,609 $ 116,162
========= =========== ========= ==========
Global
Accumulation Units:
Contract purchases and net transfers in 71,259 $ 794,465 119,532 $1,203,916
Terminated contracts and net transfers out (31,562) (344,049) (16,093) (36,062)
--------- ----------- --------- ----------
39,697 $ 450,416 103,439 $1,167,854
========= =========== ========= ==========
Global Smaller Companies
Accumulation Units:
Contract purchases and net transfers in 112,874 $ 1,194,203 12,740 $ 127,393
Terminated contracts and net transfers out (5,379) (56,562) -- --
--------- ----------- --------- ----------
107,495 $ 1,137,641 12,740 $ 127,393
========= =========== ========= ==========
High-Yield Bond
Accumulation Units:
Contract purchases and net transfers in 11,409 $ 114,050
Terminated contracts and net transfers out -- --
--------- -----------
11,409 $ 114,050
========= ===========
Income
Accumulation Units:
Contract purchases and net transfers in 68,530 $ 1,113,964 117,463 $1,805,921
Terminated contracts and net transfers out (5,937) (98,635) (20,059) (245,286)
--------- ----------- --------- ----------
62,593 $ 1,015,329 97,404 $1,560,635
========= =========== ========= ==========
Net increase from unit transactions $17,179,845 $7,357,254
=========== ==========
</TABLE>
-- 6 --
<PAGE>
<TABLE>
<CAPTION>
Canada Life of America Variable Annuity Account 2
- ------------------------------------------------------------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
6. Mortality and Expense Risk (M and E) Charges
CLICA assumes mortality and expense risks related to the operations of Variable
Annuity Account 2 and deducts a charge equal to an effective annual rate of
1.25% of the net asset value of each of the Funds at each valuation period. In
addition, at each valuation period an effective annual rate of 0.35% of the net
asset value of each Fund is deducted as daily administration fees.
7. Net Assets
Net assets at June 30, 1995 consisted of the following:
Net
Net Unrealized
Realized Appreciation
Accumulated Accumulated Gain (Depreciation)
Unit M and E Investment (Loss) on on
Sub-Account Transactions Charges Income Investments Investments Combined
- ----------- ------------ ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Capital $ 1,481,630 $ (13,623) $143,531 $(34,780) $ 50,956 $ 1,627,714
Cash Management 1,924,111 (22,881) 39,311 -- -- 1,940,541
Common Stock 3,579,608 (35,516) 281,797 (8,981) 128,340 3,945,248
Communications and
Information 9,906,072 (93,191) -- 19,199 1,819,530 11,651,610
Fixed Income Securities 1,023,367 (11,039) 66,578 (14,492) 33,542 1,097,956
Frontier 2,057,711 (13,147) -- 3,903 123,648 2,172,115
Global 2,125,297 (32,452) 29,338 (1,614) 36,098 2,156,667
Global Smaller
Companies 1,265,034 (5,911) 537 1,979 32,114 1,293,753
High-Yield Bond 114,050 (72) -- -- 316 114,294
Income 3,037,517 (44,185) 183,944 (16,710) 65,135 3,225,701
----------- --------- -------- -------- ---------- -----------
$26,514,397 $(272,017) $745,036 $(51,496) $2,289,679 $29,225,599
=========== ========= ======== ======== ========== ===========
</TABLE>
-- 7 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Largest Portfolio Changes* (unaudited)
- --------------------------------------------------------------------------------
During the six months ended June 30, 1995
Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Amgen............................... 1,800 1,800
Borders Group....................... 10,000 10,000
Bristol-Myers Squibb................ 2,000 2,000
Hospitality Franchise Systems....... 4,400 4,400
Masco............................... 4,600 4,600
Mirage Resorts...................... 5,200 5,200
Phelps Dodge........................ 2,100 2,100
USF&G............................... 7,900 7,900
Value Health........................ 3,200 3,200
Viacom (Class B).................... 3,000 3,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- ---------- --------
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Cisco Systems....................... 4,500 shs. --
CUC International................... 3,400 --
Eaton............................... 2,000 --
OfficeMax........................... 5,700 --
Paging Network...................... 4,300 --
Parametric Technology............... 4,800 --
Powersoft........................... 1,700 --
Sensormatic Electronics............. 3,500 --
Teva Pharmaceutical................. 4,500 --
Xilinx.............................. 2,000 --
- --------------------------------------------------------------------------------
Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
Atlantic Richfield.................. 2,100 2,100
Campbell Soup....................... 4,700 4,700
Federal National Mortgage
Association..................... 3,700 3,700
General Mills....................... 4,100 4,100
Panhandle Eastern................... 9,300 9,300
Procter & Gamble.................... 4,500 4,500
Royal Dutch Petroleum............... 2,700 3,700
Rubbermaid.......................... 7,500 7,500
State Street Boston................. 6,300 6,300
Tenneco............................. 5,000 5,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- ---------- --------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
Alco Standard....................... 5,000 shs. --
British Airways (ADRs).............. 6,250 --
British Petroleum (ADRs)............ 5,000 --
First Data.......................... 6,000 --
First Financial Management.......... 5,000 --
Scott Paper......................... 4,400 --
Vodafone Group (ADSs)............... 9,195 --
Convertible Preferred Stocks
Freeport-McMoRan $4.375 ............ 5,000 --
Subordinated Convertible Bonds
Compania de Telefonos de
Chile S.A. 4 1/2%, 1/15/2003..... $350,000 --
Network Equipment 7 1/4%,
5/15/2014....................... 300,000 --
- --------------------------------------------------------------------------------
Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Common Stocks
Aspect Telecommunications........... 5,000 5,000
Asyst Technologies.................. 6,000 6,000
Bell Microproducts.................. 20,000 20,000
Cisco Systems....................... 4,500 4,500
Compaq Computers.................... 5,000 5,000
Credence Systems.................... 6,900 9,000**
Lattice Semiconductor............... 8,000 8,000
Mentor Graphics..................... 11,500 11,500
National Semiconductor.............. 10,000 10,000
Submicron Systems................... 20,000 20,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- ---------- --------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Common Stocks
Corel............................... 700 shs. --
Delrina............................. 700 --
Quickturn Design Systems............ 1,000 --
Sanmina............................. 400 --
Standard Microsystems............... 400 --
Viewlogic Systems................... 600 --
Western Digital..................... 600 --
- ----------
See footnotes on page P-3.
-- P-1 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Largest Portfolio Changes* (unaudited) (continued)
- --------------------------------------------------------------------------------
During the six months ended June 30, 1995
Principal Amount
or Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
U.S. Government Agency
Government National Mortgage
Association 7 1/2%, 6/15/2023... $292,996 $292,996
Corporate Bonds
AEGON N.V. 8%, 8/15/2006............ 150,000 150,000
American Home Products
7.90%, 2/15/2005............... 150,000 150,000
Capital One Bank 8 1/8%.,
3/1/2000....................... 150,000 150,000
Golden West Financial 6.70%,
7/1/2002........................ 150,000 150,000
James River 6.70%, 11/15/2003....... 150,000 150,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- -------- --------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
U.S. Government Securities
U.S. Treasury Notes
8 7/8%, 2/15/1996............... $600,000 $300,000
Corporate Bonds
Banco Nacional de Comericio
Exterior 7 1/4%, 2/2/2004........ 150,000 --
USX 9 1/8%, 1/15/2013............... 100,000 --
Asset-backed Securities
Ford Credit Grantor Trust
7.30%, 10/15/1999............... 145,874 --
- --------------------------------------------------------------------------------
Principal Amount
or Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
Arch Communications Group........... 2,165 shs. 2,165 shs.
Community Psychiatric Centers....... 3,085 3,085
Electronics for Imaging............. 780 980
Jacor Communications................ 2,450 2,450
Leasing Solutions................... 3,100 3,100
Nu-Kote Holdings (Class A).......... 1,480 1,710
T. Rowe Price....................... 1,050 1,225
SITEL............................... 4,000 4,000
SunGard Data Systems................ 675 800
Wolverine Tube...................... 1,515 1,515
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- -------- --------
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
Aldila.............................. 500 shs. --
Brothers Gourmet Coffees............ 400 --
Dorsey Trailers..................... 400 --
Duracraft........................... 150 --
Ernst Home Centers.................. 600 --
Nautica Enterprises................. 200 --
Standard Microsystems............... 200 --
Viewlogic Systems................... 300 --
Western Digital..................... 300 --
- --------------------------------------------------------------------------------
Principal Amount
or Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Common Stocks
Deutsche Bank....................... 420 shs. 420 shs.
L.M. Ericsson (Series B)............ 1,320 1,320
Groupe Danone....................... 150 150
Jurong Shipyard..................... 4,000 4,000
Kao................................. 2,000 2,000
Mitsubishi Materials................ 8,000 8,000
Nomura Securities................... 2,000 2,000
Norsk Hydro......................... 600 600
Pioneer Electronics................. 1,000 3,000
Toshiba............................. 4,000 12,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- -------- --------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Common Stocks
ABN-AMRO Holdings................... 350 shs. --
Bekaert............................. 20 --
City Developments................... 3,400 --
Daiwa House Industry................ 2,000 2,000 shs.
Fuji Bank........................... 1,000 1,000
Mitsubishi Rayon.................... 13,000 --
News Corp........................... 3,000 3,204
Repsol.............................. 400 --
TPI Polene.......................... 3,250 --
Tuntex Distinct (GDRs).............. 1,200 --
- ----------
See footnotes on page P-3.
-- P-2 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Largest Portfolio Changes* (unaudited) (continued)
- --------------------------------------------------------------------------------
During the six months ended June 30, 1995
Principal Amount
or Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
Common Stocks
Danske Traelastkompagne............. 223 shs. 293 shs.
LEM Holdings........................ 67 67
Montupet............................ 131 131
Namura Shipbuilding................. 1,000 1,000
Otra N.V............................ 94 94
Sylea............................... 205 205
Tilbury Douglas..................... 2,500 2,500
Thorkild Kristensen................. 325 325
Valmet Oy........................... 910 910
Wace Group.......................... 1,600 3,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- -------- --------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
Common Stocks
Aldila.............................. 375 shs. --
Coflexip (ADRs)..................... 170 --
DeVRY............................... 125 --
Duracraft........................... 120 --
Sullivan Dental Products............ 270 --
SunGard Data Systems................ 20 80 shs.
Western Digital..................... 230 --
- --------------------------------------------------------------------------------
Principal Amount
or Shares
----------------------
Holdings
Additions Increase 6/30/95
- --------- -------- --------
SELIGMAN INCOME PORTFOLIO
Common Stocks
Bell Atlantic....................... 4,000 shs. 4,000 shs.
Convertible Preferred Stocks
Mobile Telecommunication
Technologies $2.25.............. 6,500 6,500
National City $4.00................. 3,300 3,300
Unocal $3.50........................ 4,000 4,000
Subordinated Convertible Bonds
EMC 4 1/4%, 1/1/2001................ $200,000 $200,000
James River 6.70%, 11/15/2003....... 350,000 350,000
LDDS Communications
5%, 8/15/2003................... 250,000 250,000
MascoTech 4 1/2%, 12/15/2003........ 300,000 300,000
Corporate Bonds
AEGON N.V. 8%, 8/15/2006............ 250,000 250,000
Capital One Bank
8 1/8%, 3/1/2000................ 250,000 250,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/95
- ---------- -------- --------
SELIGMAN INCOME PORTFOLIO
Common Stocks
Dominion Resources.................. 3,000 shs. --
Unicom.............................. 5,304 --
Convertible Preferred Stocks
Consolidated Freightways $1.54...... 10,000 --
Subordinated Convertible Bonds
Arvin Industries 7 1/2%, 9/30/2014.. $200,000 --
Bank of Boston 7 3/4%, 6/15/2011.... 200,000 --
Century Telephone 6%, 2/1/2007...... 150,000 --
Compania de Telefonos de Chile
S.A. 4 1/2%, 1/15/2003.......... 250,000 --
Quantum 6 3/8%, 4/1/2002............ 250,000 --
Seagate Technology 6 3/4%,
5/1/2012........................ 350,000 --
Corporate Bonds
Banco Nacional de Comericio
Exterior 7 1/4%, 2/2/2004........ 250,000 --
- ----------
* Largest portfolio changes from the previous year-end to the current midyear
are based on cost of purchases and proceeds from sales of securities.
** Includes 1,700 shares received as a result of a 3-for-2 stock split.
-- P-3 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited)
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
COMMON STOCKS -- 92.9% Shares Value
------ -----
AUTOMOTIVE AND RELATED -- 6.9%
Chrysler .......................................... 2,100 $ 100,538
Cooper Tire & Rubber .............................. 5,000 121,875
Harley-Davidson ................................... 4,800 117,000
Phelps Dodge ...................................... 2,100 123,900
-----------
463,313
-----------
BASIC MATERIALS -- 3.5%
Louisiana Pacific ................................. 4,600 120,750
Nucor ............................................. 2,100 112,350
-----------
233,100
-----------
BUSINESS SERVICES AND SUPPLIES -- 5.6%
Grainger (W.W.) ................................... 1,900 111,625
Interpublic Group of Companies .................... 3,600 135,000
USF&G ............................................. 7,900 128,375
-----------
375,000
-----------
COMPUTER GOODS AND SERVICES -- 10.0%
Ceridian* ......................................... 5,400 199,125
EMC* .............................................. 6,300 152,775
FIserv* ........................................... 6,000 167,625
Intel ............................................. 2,400 151,950
-----------
671,475
-----------
CONSUMER GOODS AND SERVICES -- 7.4%
Masco ............................................. 4,600 124,200
Newell ............................................ 5,800 142,100
Tambrands ......................................... 2,700 115,425
UST Inc. .......................................... 4,000 119,000
-----------
500,725
-----------
DRUGS AND HEALTH CARE -- 17.1%
Amgen* ............................................ 1,800 144,675
Arrow International ............................... 3,000 125,625
Beverly Enterprises ............................... 7,800 96,525
Bristol-Myers Squibb .............................. 2,000 136,250
Columbia/HCA Healthcare ........................... 2,900 125,425
Community Psychiatric Centers ..................... 6,800 76,500
Dentsply International* ........................... 3,200 115,400
Protein Design Labs* .............................. 4,900 102,288
Sunrise Medical* .................................. 4,000 124,500
Value Health* ..................................... 3,200 103,200
-----------
1,150,388
-----------
FINANCIAL SERVICES -- 4.6%
MBNA .............................................. 4,800 162,000
Travelers ......................................... 3,300 144,375
-----------
306,375
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-4 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued) Shares or
Principal
Amount Value
--------- -----
FOOD AND FOOD SERVICES -- 3.4%
Brinker International* ............................ 5,200 shs.$ 89,700
PepsiCo ........................................... 3,000 136,875
-----------
226,575
-----------
LEISURE AND RELATED -- 9.0%
Circus Circus Enterprises* ........................ 3,700 130,425
Hospitality Franchise Systems* .................... 4,400 152,350
Mattel ............................................ 6,250 162,500
Mirage Resorts* ................................... 5,200 159,250
-----------
604,525
-----------
RETAIL TRADE -- 8.2%
American Eagle Outfitters ......................... 3,500 54,250
Borders Group ..................................... 10,000 143,750
Home Depot ........................................ 3,500 142,187
Illinois Tool Works ............................... 2,700 148,500
Nordstrom ......................................... 1,600 66,100
-----------
554,787
-----------
SOFTWARE -- 3.7%
Microsoft* ........................................ 1,900 171,831
Sybase* ........................................... 2,720 79,050
-----------
250,881
-----------
SPECIALTY CHEMICALS -- 2.0%
Schulman, A ....................................... 4,687 134,751
-----------
TELECOMMUNICATIONS -- 11.5%
British Sky Broadcasting (ADRs) ................... 4,900 128,013
Century Telephone Enterprises ..................... 4,000 113,500
DSC Communications* ............................... 3,400 158,312
MCICommunications ................................. 3,300 72,394
Motorola .......................................... 2,400 161,100
Viacom (Class B) .................................. 3,000 139,125
-----------
772,444
-----------
Total Common Stocks (Cost $5,139,225) ............. 6,244,339
-----------
REPURCHASE AGREEMENTS -- 5.2% (5 1/4% maturing
7/5/1995) (Cost $350,000)
HSBC Securities, Inc., collateralized by:
$350,000 U.S. Treasury Notes 6 1/2%, 5/15/1997,
with a fair market value of $357,204 ........... $350,000 350,000
-----------
Total Investments -- 98.1% (Cost $5,489,225) ...... 6,594,339
Other Assets Less Liabilities -- 1.9% ............. 126,944
-----------
Net Assets -- 100.0% .............................. $6,721,283
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-5 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO Annualized
Yield on
Purchase Principal
Date Amount Value
---------- --------- -----
U.S. GOVERNMENT SECURITIES -- 48.2%
U.S. Treasury Bills, 9/14/1995 ................. 5.79% $1,600,000 $ 1,581,284
U.S. Treasury Bills, 8/24/1995 ................. 5.81 350,000 347,044
-----------
Total U.S. Government Securities
(Cost $1,928,328) ............................ 1,928,328
-----------
COMMERCIAL PAPER -- 31.6%
AT&T Capital Corp., 8/16/1995 .................. 5.94 175,000 173,672
Associates Corp. of North America, 9/26/1995 ... 5.68 175,000 172,598
American Express Credit Corp., 7/12/1995 ....... 6.00 150,000 149,725
Ford Motor Credit Corp., 8/2/1995 .............. 5.96 175,000 174,073
John Deere Capital Corp., 10/4/1995 ............ 5.67 175,000 172,382
General Electric Capital Corp., 7/26/1995 ...... 6.08 125,000 124,480
Hewlett-Packard Company, 9/5/1995 .............. 5.90 150,000 148,377
Pitney Bowes Credit Corp., 8/8/1995 ............ 6.01 150,000 149,062
-----------
Total Commercial Paper (Cost $1,264,369) ....... 1,264,369
-----------
REPURCHASE AGREEMENTS -- 16.2%
(5 1/4% maturing 7/5/1995) (Cost $650,000)
HSBC Securities, Inc., collateralized by:
$650,000 U.S. Treasury Notes 6 1/2%, 5/15/1997,
with a fair market value of $663,380 ......... 5.25 650,000 650,000
-----------
Total Investments -- 96.0% (Cost $3,842,697) ... 3,842,697
Other Assets Less Liabilities -- 4.0% .......... 160,417
-----------
Net Assets -- 100.0% ........................... $ 4,003,114
===========
SELIGMAN COMMON STOCK PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 91.9%
ADVERTISING -- 1.1%
Omnicom Group ..................................... 4,200 $ 254,625
-----------
APPAREL AND TEXTILES -- 1.4%
Liz Claiborne ..................................... 5,800 123,250
Unifi ............................................. 8,400 202,125
-----------
325,375
-----------
AUTOMOTIVE AND RELATED -- 2.2%
Echlin ............................................ 6,300 218,925
General Motors .................................... 2,800 110,600
United Technologies ............................... 2,300 179,688
-----------
509,213
-----------
BUILDING AND CONSTRUCTION -- 0.9%
Cemex S.A. (ADSs) ................................. 16,875 60,431
Sherwin-Williams .................................. 4,000 142,500
-----------
202,931
-----------
- ----------
See notes to financial statements.
-- P-6 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
CHEMICALS -- 5.0%
Air Products and Chemicals ........................ 6,200 $ 345,650
Crompton & Knowles ................................ 7,600 107,350
Dow Chemical ...................................... 7,800 560,625
Lubrizol .......................................... 4,200 148,575
-----------
1,162,200
-----------
COMPUTERS AND BUSINESSSERVICES -- 2.1%
International Business Machines ................... 5,200 499,200
-----------
CONSUMER GOODS AND SERVICES -- 12.0%
Coca-Cola ......................................... 4,800 306,000
Colgate-Palmolive ................................. 4,200 307,125
Eastman Kodak ..................................... 3,200 194,000
Gillette .......................................... 8,200 365,925
International Flavors & Fragrances ................ 5,900 293,525
PepsiCo ........................................... 12,100 552,063
Procter & Gamble .................................. 4,500 323,437
Rubbermaid ........................................ 7,500 208,125
UST Inc. .......................................... 8,400 249,900
-----------
2,800,100
-----------
DRUGS AND HEALTH CARE -- 6.6%
Abbott Laboratories ............................... 6,200 251,100
American Home Products ............................ 2,000 154,750
Bard (C.R.) ....................................... 5,000 150,000
Bausch & Lomb ..................................... 2,500 103,750
Bristol-Myers Squibb .............................. 2,900 197,563
Mallinckrodt Group ................................ 3,700 131,350
Schering-Plough ................................... 12,600 555,975
-----------
1,544,488
-----------
ELECTRIC AND GAS UTILITIES -- 0.8%
PacifiCorp ........................................ 9,500 178,125
-----------
ELECTRONICS -- 1.2%
Motorola .......................................... 4,200 281,925
-----------
ENERGY -- 10.8%
Anadarko Petroleum ................................ 2,900 125,062
Atlantic Richfield ................................ 2,100 230,475
Baker Hughes ...................................... 7,000 143,500
Enron ............................................. 8,400 295,050
Mobil ............................................. 2,400 230,400
Panhandle Eastern ................................. 9,300 226,688
Pennzoil .......................................... 4,300 202,637
Royal Dutch Petroleum ............................. 3,700 450,937
Schlumberger ...................................... 5,400 335,475
Sonat ............................................. 9,200 280,600
-----------
2,520,824
-----------
- ----------
See notes to financial statements.
-- P-7 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
FINANCE AND INSURANCE -- 14.9%
Aetna Life & Casualty ............................. 3,200 $ 201,200
Ahmanson (H.F.) ................................... 8,300 182,600
American International Group ...................... 4,600 524,400
Bank of New York .................................. 6,400 258,400
Chubb ............................................. 4,000 320,500
Federal National Mortgage Association ............. 3,700 349,188
General Re ........................................ 3,100 415,013
Great Western Financial ........................... 6,600 136,125
Household International ........................... 2,400 118,800
KeyCorp ........................................... 5,100 160,012
Morgan (J.P.) ..................................... 1,900 133,238
NationsBank ....................................... 5,814 311,776
PNC Bank .......................................... 5,900 155,612
State Street Boston ............................... 6,300 232,313
-----------
3,499,177
-----------
FOOD -- 5.3%
Campbell Soup ..................................... 4,700 230,300
ConAgra ........................................... 4,050 141,244
CPC International ................................. 4,200 259,350
General Mills ..................................... 4,100 210,637
Sara Lee .......................................... 9,500 270,750
Wendy's International ............................. 7,100 126,912
-----------
1,239,193
-----------
INDUSTRIAL EQUIPMENT -- 2.5%
Emerson Electric .................................. 2,200 157,300
General Electric .................................. 7,900 445,362
-----------
602,662
-----------
OFFICE EQUIPMENT -- 1.0%
Pitney Bowes ...................................... 6,400 245,600
-----------
PAPER PRODUCTS -- 0.8%
Kimberly-Clark .................................... 3,000 179,625
-----------
PRINTING AND PUBLISHING -- 2.4%
Donnelley (R.R.) .................................. 3,000 108,000
Knight-Ridder Newspapers .......................... 5,600 318,500
Tribune ........................................... 2,000 122,750
-----------
549,250
-----------
RETAIL TRADE -- 7.3%
American Stores ................................... 6,700 188,437
Dillard Department Stores ......................... 4,200 123,375
Kmart ............................................. 5,800 84,825
Limited ........................................... 5,900 129,800
May Department Stores ............................. 4,800 199,800
Nordstrom ......................................... 6,700 276,794
Penney (J.C.) ..................................... 4,000 192,000
Sears, Roebuck .................................... 4,000 239,500
- ----------
See notes to financial statements.
-- P-8 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares or
Principal
Amount Value
--------- -----
RETAIL TRADE (continued)
Wal-Mart .......................................... 6,600 shs. $ 176,550
Woolworth ......................................... 7,200 108,900
-----------
1,719,981
-----------
TECHNOLOGY -- 1.1%
Cray Research ..................................... 11,000 268,125
-----------
TELECOMMUNICATIONS -- 2.8%
ALLTEL ............................................ 9,100 230,913
American Telephone & Telegraph .................... 4,200 223,125
GTE ............................................... 6,200 211,575
-----------
665,613
-----------
TELEPHONE UTILITIES -- 0.9%
NYNEX ............................................. 5,300 213,325
-----------
TOBACCO -- 1.3%
Philip Morris ..................................... 4,200 312,375
-----------
TRANSPORTATION -- 2.1%
Conrail ........................................... 2,900 161,313
NFC ............................................... 40,000 102,685
Roadway Services .................................. 4,850 227,950
-----------
491,948
-----------
MISCELLANEOUS -- 5.4%
Corning ........................................... 12,200 399,550
Dover ............................................. 2,200 160,050
Minnesota Mining & Manufacturing .................. 8,200 469,450
Tenneco ........................................... 5,000 230,000
-----------
1,259,050
-----------
Total Common Stocks (Cost $16,311,655) ............ 21,524,930
-----------
SUBORDINATED CONVERTIBLE BONDS -- 1.5%
EMC 4 1/4%, 1/1/2001 ............................... $125,000 168,750
MascoTech 4 1/2%, 12/15/2003 ....................... 250,000 182,188
-----------
Total Subordinated Convertible Bonds (Cost $318,260) 350,938
-----------
REPURCHASE AGREEMENTS -- 5.3% (5 1/4%
maturing 7/5/1995)
(Cost $1,250,000)
HSBC Securities, Inc., collateralized by:
$1,250,000 U.S. Treasury Notes 6 1/2%,
5/15/1997, with a fair market value of $1,275,730 1,250,000 1,250,000
-----------
Total Investments -- 98.7% (Cost $17,879,915) ..... 23,125,868
Other Assets Less Liabilities -- 1.3% ............. 296,242
-----------
Net Assets -- 100.0% .............................. $23,422,110
===========
- ----------
See notes to financial statements.
-- P-9 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
------ -----
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
COMMON STOCKS -- 90.5%
COMMUNICATIONS INFRASTRUCTURE -- 14.7%
Act Networks ...................................... 5,800 $ 98,600
Aspect Telecommunications* ........................ 5,000 225,000
Boston Technology ................................. 7,000 130,812
Cabletron Systems ................................. 2,500 133,125
CIDCO* ............................................ 6,000 188,625
Cisco Systems* .................................... 4,500 227,531
DSC Communications* ............................... 3,700 172,281
Lannet Data Communications* ....................... 8,500 204,000
Madge N.V ......................................... 3,500 98,438
Motorola .......................................... 2,000 134,250
Premisys Communications ........................... 2,700 174,488
-----------
1,787,150
-----------
COMPUTER HARDWARE/PERIPHERALS -- 14.0%
Adaptec* .......................................... 4,500 165,937
Compaq Computers* ................................. 5,000 226,875
Electronics for Imaging* .......................... 3,000 157,125
EMC* .............................................. 9,500 230,375
Komag* ............................................ 4,000 208,500
Mentor Graphics ................................... 11,500 199,812
Read-Rite* ........................................ 7,000 186,813
Tektronix ......................................... 4,000 197,000
Vicor ............................................. 3,000 134,437
-----------
1,706,874
-----------
COMPUTER SOFTWARE --17.9%
BMC Software* ..................................... 2,000 154,000
CoATS Software .................................... 3,200 36,000
CBT Group (ADRs) .................................. 1,200 51,600
Compuware* ........................................ 6,200 191,425
Expert Software ................................... 7,500 136,875
FTP Software* ..................................... 6,000 181,500
MapInfo* .......................................... 1,000 35,375
Netmanage* ........................................ 8,000 138,000
Network General ................................... 8,000 218,500
Oracle Systems* ................................... 5,000 192,813
Parametric Technology* ............................ 4,000 198,500
Renaissance Solutions ............................. 4,000 53,500
Softkey International ............................. 8,000 254,000
Synopsys* ......................................... 2,000 125,000
VMark Software .................................... 12,000 210,000
-----------
2,177,088
-----------
CONTRACT MANUFACTURING -- 2.5%
Altron* ........................................... 5,000 120,625
Merix* ............................................ 6,000 180,000
-----------
300,625
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-10 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares or
Principal
Amount Value
--------- -----
INFORMATION SERVICES -- 0.9%
SunGard Data Systems* ............................. 2,000 shs. $ 105,000
-----------
SEMICONDUCTORS -- 21.5%
Advanced Micro Devices* ........................... 5,500 200,063
Alliance Semiconductors* .......................... 3,500 170,625
Atmel* ............................................ 3,000 166,312
Bell Microproducts* ............................... 20,000 196,250
Cypress Semiconductor* ............................ 5,200 210,600
Exar* ............................................. 4,000 117,000
Integrated Device Technology* ..................... 2,500 115,469
Intel ............................................. 3,000 189,937
Lattice Semiconductor ............................. 8,000 275,500
Linear Technology ................................. 3,000 197,250
Maxim Intergrated Products* ....................... 4,000 204,000
Microchip Technology* ............................. 3,000 109,500
National Semiconductor* ........................... 10,000 277,500
Xilinx* ........................................... 2,000 187,750
-----------
2,617,756
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 19.0%
Applied Materials* ................................ 2,500 216,250
Asyst Technologies ................................ 6,000 222,750
Cognex* ........................................... 3,500 140,438
Credence Systems* ................................. 9,000 270,000
Electro Scientific* ............................... 5,200 173,550
Electroglas* ...................................... 2,000 115,000
FSI International* ................................ 4,000 94,000
Fusion Systems* ................................... 2,000 67,750
KLA Instruments* .................................. 1,800 139,275
Lam Research* ..................................... 2,500 159,687
Mattson Technology* ............................... 3,500 163,188
Novellus Systems* ................................. 3,000 203,250
PRI Automation* ................................... 4,000 132,000
Submicron Systems ................................. 20,000 217,500
-----------
2,314,638
-----------
Total Common Stocks (Cost $9,214,729) ............. 11,009,131
-----------
SHORT-TERM HOLDINGS -- 8.2%
Bank of Montreal, Toronto,
Fixed Time Deposit 6 1/16%, 7/5/1995 ............. $500,000 500,000
First National Bank of Chicago, Grand Cayman,
Fixed Time Deposit, 6%, 7/5/1995 ................. 500,000 500,000
-----------
Total Short-Term Holdings (Cost $1,000,000) ....... 1,000,000
-----------
Total Investments -- 98.7% (Cost $10,214,729) ...... 12,009,131
Other Assets Less Liabilities -- 1.3% .............. 161,775
-----------
Net Assets -- 100.0% ............................... $12,170,906
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-11 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
Principal
Amount Value
--------- -----
U.S. GOVERNMENT SECURITIES AND AGENCIES -- 54.1%
U.S. GOVERNMENT SECURITIES -- 37.9%
U.S. Treasury Bonds 8 7/8%, 2/15/2019 ............. $900,000 $ 1,128,093
U.S. Treasury Notes 8 7/8%, 2/15/1996 ............. 300,000 305,813
-----------
Total U.S. Government Securities (Cost $1,339,791) 1,433,906
-----------
U.S. GOVERNMENT AGENCIES -- 16.2%
Government National Mortgage Association:
10%, 12/15/2020+ ............................... 289,755 315,652
7 1/2%, 6/15/2023+ ............................. 292,996 294,736
-----------
Total U.S. Government Agencies (Cost $586,847) .... 610,388
-----------
Total U.S. Government Securities and Agencies
(Cost $1,926,638) ............................... 2,044,294
-----------
CORPORATE BONDS -- 35.5%
AEGON N.V. 8%, 8/15/2006 .......................... 150,000 162,246
American Home Products 7.90%, 2/15/2005 ........... 150,000 160,375
Capital One Bank 8 1/8%, 3/1/2000 ................. 150,000 157,209
First USA Bank 5 3/4%, 1/15/1999 .................. 100,000 96,906
General Motors Acceptance 5 5/8%, 2/1/1999 ........ 150,000 145,418
Golden West Financial 6.70%, 7/1/2002 ............. 150,000 148,375
James River 6.70%, 11/15/2003 ..................... 150,000 145,016
News America Holdings 8 1/4%, 8/10/2018 ........... 150,000 154,995
United Telecommunications 9 1/2%, 4/1/2003 ........ 150,000 172,371
-----------
Total Corporate Bonds (Cost $1,279,072) ........... 1,342,911
-----------
REPURCHASE AGREEMENTS -- 5.3% (5 1/4%
maturing 7/5/1995) (Cost $200,000)
HSBC Securities, Inc., collateralized by:
$200,000 U.S. Treasury Notes 6 1/2%, 5/15/1997,
with a fair market value of $204,117 ........... 200,000 200,000
-----------
Total Investments -- 94.9% (Cost $3,405,710) ...... 3,587,205
Other Assets Less Liabilities -- 5.1% ............. 193,361
-----------
Net Assets -- 100.0% .............................. $3,780,566
===========
- ----------
+ Investments in mortgage-backed securities are subject to principal
paydowns. As a result of prepayments from refinancing or satisfaction of
the underlying mortgage instruments, the average life may be less than the
stated maturity. This in turn may impact the ultimate yield realized from
these investments.
See notes to financial statements.
-- P-12 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 56.1%
ADVERTISING -- 2.3%
DIMAC* ............................................ 1,500 $ 23,250
Heritage Media (Class A) .......................... 1,135 32,773
-----------
56,023
-----------
APPAREL -- 0.8%
St. John Knits .................................... 450 20,194
-----------
BROADCASTING -- 3.0%
EZ Communications (Class A)* ...................... 1,000 18,250
Jacor Communications* ............................. 2,450 40,119
United Video Satellite Group (Class A)* ........... 502 14,495
-----------
72,864
-----------
BUSINESS GOODS AND SERVICES -- 2.6%
Interim Services* ................................. 400 9,950
Nu-Kote Holdings (Class A)* ....................... 1,710 53,865
-----------
63,815
-----------
CAPITAL GOODS -- 4.2%
DT Industries ..................................... 1,500 17,062
Fusion Systems* ................................... 475 16,091
Greenfield Industries ............................. 540 15,525
Oak Industries .................................... 240 6,180
Wolverine Tube* ................................... 1,515 48,669
-----------
103,527
-----------
COMMUNICATIONS -- 9.0%
Arch Communications Group* ........................ 2,165 47,765
Aspect Telecommunications* ........................ 530 23,850
Premisys Communications ........................... 850 54,931
ProNet* ........................................... 1,190 24,172
SITEL* ............................................ 4,000 70,750
-----------
221,468
-----------
COMPUTER SOFTWARE AND SERVICES -- 6.4%
BISYS Group* ...................................... 1,575 34,847
CoATS Software .................................... 2,500 28,125
Expert Software ................................... 1,500 27,375
SPS Transaction Services* ......................... 700 24,237
SunGard Data Systems .............................. 800 42,000
-----------
156,584
-----------
DRUGS AND HEALTH CARE -- 6.4%
AmeriSource Health (Class A) ...................... 1,330 30,590
Benson Eyecare .................................... 2,250 22,781
Community Psychiatric Centers ..................... 3,085 34,706
Lincare Holdings* ................................. 1,100 29,288
Living Centers of America* ........................ 710 19,259
Protein Design Labs* .............................. 980 20,457
-----------
157,081
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-13 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
------ -----
ELECTRONICS -- 6.1%
Cognex ............................................ 400 $ 16,050
Cypress Semiconductor* ............................ 620 25,110
Electroglas* ...................................... 430 24,725
Electronics for Imaging* .......................... 980 51,328
Lam Research* ..................................... 500 31,938
-----------
149,151
-----------
FARM EQUIPMENT -- 1.5%
AGCO .............................................. 960 36,000
-----------
FINANCIAL SERVICES -- 5.0%
Commerce Bancorp .................................. 850 16,416
Leasing Solutions* ................................ 3,100 35,650
T. Rowe Price ..................................... 1,225 47,316
Roosevelt Financial Group ......................... 1,400 23,275
-----------
122,657
-----------
FOOD --0.9%
Canandaigua Wine (Class A)* ....................... 515 22,982
-----------
MEDICAL PRODUCTS AND TECHNOLOGY -- 1.6%
Dentsply International ............................ 625 22,539
Patterson Dental* ................................. 680 16,065
-----------
38,604
-----------
OIL AND GAS -- 2.1%
Coflexip (ADRs) ................................... 900 22,837
Pogo Producing .................................... 1,230 28,136
-----------
50,973
-----------
RESTAURANTS --0.2%
International House of Pancakes* .................. 200 5,200
-----------
RETAIL TRADE -- 1.4%
Casey's General Store ............................. 1,905 33,933
-----------
TRANSPORTATION -- 0.8%
U.S. Xpress Enterprises (Class A)* ................ 2,510 20,864
-----------
UTILITIES -- 1.8%
California Energy* ................................ 1,900 31,113
Trigen Energy ..................................... 860 15,158
-----------
46,271
-----------
Total Common Stocks (Cost $1,247,162) ............. 1,378,191
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-14 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Principal
Amount Value
--------- -----
SHORT-TERM HOLDINGS -- 28.5%
ABN-AMRO Bank, Grand Cayman,
Fixed Time Deposit 6%, 7/5/1995 .................. $100,000 $ 100,000
Bank of Montreal, Toronto,
Fixed Time Deposit, 6 1/16%, 7/5/1995 ............ 100,000 100,000
Canadian Imperial Bank of Commerce, Grand Cayman,
Fixed Time Deposit, 6.06%, 7/5/1995 .............. 100,000 100,000
First National Bank of Chicago, Grand Cayman,
Fixed Time Deposit, 6%, 7/5/1995 ................. 100,000 100,000
Society National Bank, Grand Cayman,
Fixed Time Deposit, 6%, 7/5/1995 ................. 100,000 100,000
Swiss Bank, Grand Cayman,
Fixed Time Deposit, 5 15/16%, 7/5/1995 ........... 100,000 100,000
Union Bank of Switzerland, Grand Cayman,
Fixed Time Deposit, 6 1/8%, 7/5/1995 ............. 100,000 100,000
-----------
Total Short-Term Holdings (Cost $700,000) ......... 700,000
-----------
Total Investments -- 84.6% (Cost $1,947,162) ...... 2,078,191
Other Assets Less Liabilities -- 15.4% ............ 377,346
-----------
Net Assets -- 100.0% .............................. $ 2,455,537
===========
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 82.0%
BANKING --7.2%
Banco de Santander (Spain) ........................ 636 $ 25,135
Deutsche Bank (Germany) ........................... 420 20,446
Fuji Bank (Japan) ................................. 1,000 20,188
Malayan Banking (Malaysia) ........................ 1,500 11,874
Siam Commercial Bank (Thailand) ................... 1,000 9,560
Societe Generale (France) ......................... 190 22,240
Sumitomo Trust and Banking (Japan) ................ 2,000 24,320
United Overseas Bank (Singapore) .................. 2,684 25,364
-----------
159,127
-----------
BUILDING MATERIALS AND PRODUCTS -- 0.8%
Caradon (UK) ...................................... 5,000 18,815
-----------
CHEMICALS -- 3.6%
Akzo Nobel (Netherlands) .......................... 190 22,727
Bayer A.G. (Germany) .............................. 85 21,132
Norsk Hydro (Netherlands) ......................... 600 25,181
Toyo Ink Manufacturing (Japan) .................... 2,000 11,097
-----------
80,137
-----------
COMMERCIAL SERVICES -- 2.2%
Jurong Shipyard (Singapore) ....................... 4,000 28,633
Kvaerner Industries (Norway) ...................... 466 20,427
-----------
49,060
-----------
- ----------
See notes to financial statements.
-- P-15 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
CONSTRUCTION AND PROPERTY -- 3.8%
Daiwa House Industry (Japan) ...................... 2,000 $ 30,695
LaFarge Coppee (France) ........................... 251 19,545
Siam Cement (Thailand) ............................ 200 12,769
Uralita (Spain) ................................... 1,800 21,750
-----------
84,759
-----------
CONSUMER PRODUCTS -- 5.9%
CSK (Japan) ....................................... 1,000 23,139
Kao (Japan) ....................................... 2,000 24,084
L'Oreal (France) .................................. 95 23,868
Nestle (Switzerland) .............................. 25 26,069
Unilever (UK) ..................................... 1,700 34,493
-----------
131,653
-----------
DRUGS AND HEALTH CARE -- 1.2%
Roche Holdings (Switzerland) ...................... 4 25,812
-----------
ELECTRONICS -- 7.9%
Farnell Electronics (UK) .......................... 2,350 23,756
Mitsubishi High-Tech (Japan) ...................... 1,000 23,611
Pioneer Electronics (Japan) ....................... 3,000 51,001
Toshiba (Japan) ................................... 12,000 76,076
-----------
174,444
-----------
FINANCE AND INSURANCE -- 6.7%
Assicurazioni Generali (Italy) .................... 775 18,231
AXA (France) ...................................... 398 21,527
Internationale Nederlanden Group (Netherlands) .... 413 22,860
Legal & General Group (UK) ........................ 3,000 25,448
Nomura Securities (Japan) ......................... 2,000 34,945
Zurich Versicherung (Switzerland) ................. 20 25,168
-----------
148,179
-----------
INDUSTRIAL GOODS AND SERVICES -- 2.7%
BBC Brown Boverie (Switzerland) ................... 26 26,953
BTR (UK) .......................................... 6,600 33,623
BTR Warrants* (UK) ................................ 33 14
-----------
60,590
-----------
LEISURE AND HOTELS -- 1.5%
Granada Group (UK) ................................ 3,400 32,961
-----------
MANUFACTURING -- 6.3%
Delta Group (UK) .................................. 2,500 19,333
FKI Babcock (UK) .................................. 8,700 22,057
FKI Babcock Rights* (UK) .......................... 1,925 1,028
Gadjah Tungal (Indonesia) ......................... 19,000 26,875
Hocheng Group (GDRs)* (Taiwan) .................... 1,000 14,750
Yamaha (Japan) .................................... 5,000 54,601
-----------
138,644
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-16 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
MEDIA -- 5.7%
News Corp. (Australia) ............................ 3,204 $ 17,889
Nippon Television Network (Japan) ................. 110 24,804
Reed Elsevier (Netherlands) ....................... 2,250 26,594
Reuters Holdings (UK) ............................. 3,900 32,585
WPP Group (UK) .................................... 13,200 25,467
-----------
127,339
-----------
METALS -- 0.5%
Sumitomo Sitex (Japan) ............................ 1,000 10,743
-----------
PAPER AND PACKAGING -- 2.4%
Nippon Paper (Japan) .............................. 5,000 32,466
Stora Kopparbergs (Sweden) ........................ 1,500 20,326
-----------
52,792
-----------
RESOURCES -- 4.3%
British Petroleum (UK) ............................ 4,700 33,761
Broken Hill Proprietary (Australia) ............... 1,705 20,977
MIM Holdings (Australia) .......................... 8,000 9,888
Societe Nationale ELF Aquitaine (France) .......... 300 22,203
YPF Sociedad Anonima (ADRs) (Argentina) ........... 400 7,550
-----------
94,379
-----------
RETAILING -- 4.8%
Aoyama Trading (Japan) ............................ 600 10,058
Carrefour Supermarche (France) .................... 45 23,085
Groupe Danone (France) ............................ 150 25,268
Karstadt (Germany) ................................ 40 17,533
Tesco (UK) ........................................ 6,800 31,444
-----------
107,388
-----------
TELECOMMUNICATIONS -- 6.0%
L.M. Ericsson (Series B) (Sweden) ................. 1,320 26,330
Grupo Carso (ADRs)*+ (Mexico) ..................... 1,000 10,625
Hong Kong Telecommunications (Hong Kong) .......... 7,800 15,423
Nippon Telegraph & Telephone (Japan) .............. 7 58,674
Tele Danmark (ADRs) (Denmark) ..................... 375 20,882
-----------
131,934
-----------
TEXTILES -- 1.6%
Mitsubishi Materials (Japan) ...................... 8,000 35,889
-----------
TOBACCO -- 1.6%
B.A.T. Industries (UK) ............................ 4,500 34,514
-----------
TRANSPORTATION -- 5.3%
East Japan Railways (Japan) ....................... 12 61,626
Lufthansa (Germany) ............................... 155 22,457
- ----------
+ Rule 144A security.
* Non-income producing security.
See notes to financial statements.
-- P-17 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
TRANSPORTATION (continued)
Perusahaan Otomobil Nasional (Malaysia) ........... 3,000 shs. $ 10,829
Swire Pacific (Hong Kong) ......................... 3,000 22,875
-----------
117,787
-----------
Total Common Stocks (Cost $1,754,146) ............. 1,816,946
-----------
CONVERTIBLE BONDS -- 1.7%
CONGLOMERATE -- 0.7%
Daewoo (Korea) Zero Coupon Bonds due 12/31/2004 ... $25,000 14,438
-----------
ELECTRONICS -- 0.4%
Teco Electronics & Machinery (Taiwan) 2 3/4%,
due 4/15/2004 ................................... 10,000 9,300
-----------
MANUFACTURING -- 0.6%
Gujurat Ambuja Cement (India) 3 1/2%, 6/30/1999 ... 10,000 13,668
-----------
Total Convertible Bonds (Cost $40,869) ............ 37,406
-----------
Total Investments -- 83.7% (Cost $1,795,015) ...... 1,854,352
Other Assets Less Liabilities -- 16.3% ............ 360,709
-----------
Net Assets -- 100.0% .............................. $2,215,061
===========
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
COMMON STOCKS -- 51.9%
ADVERTISING -- 1.3%
DIMAC* (US) ....................................... 465 shs. $ 7,207
Heritage Media (Class A) (US) ..................... 340 9,818
-----------
17,025
-----------
AUTOMOTIVE PARTS MANUFACTURING -- 1.5%
Montupet (France) ................................. 131 19,661
-----------
BUILDING AND CONSTRUCTION -- 0.9%
Ashtead Group (UK) ................................ 1,600 11,608
-----------
BUSINESS SERVICES -- 2.2%
BISYS Group* (US) ................................. 400 8,850
International Business Communications Holdings (UK) 2,500 11,241
Nu-Kote Holdings (Class A)* (US) .................. 145 4,567
SunGard Data Systems* (US) ........................ 80 4,200
-----------
28,858
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-18 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
CAPITAL GOODS -- 0.5%
Fusion Systems* (US) .............................. 200 $ 6,775
-----------
CHEMICALS -- 1.2%
Dalloz* (France) .................................. 53 9,300
Toshiba Chemical (Japan) .......................... 1,000 6,788
-----------
16,088
-----------
COMPUTER SOFTWARE -- 0.4%
Synopsys (US) ..................................... 85 5,312
-----------
CONSTRUCTION AND PROPERTY -- 3.8%
Danske Traelastkompagne (Denmark) ................. 293 20,360
Polypipe (UK) ..................................... 4,900 12,110
Tilbury Douglas (UK) .............................. 2,500 16,942
-----------
49,412
-----------
CONSUMER GOODS AND SERVICES--3.0%
Birkby (UK) ....................................... 1,500 3,683
Canandaigua Wine (Class A)* (US) .................. 115 5,134
Courts (Singapore) ................................ 5,000 7,445
Rentsch, Walter (Switzerland) ..................... 67 11,246
Sorini (Indonesia) ................................ 1,000 3,951
St. John Knits (US) ............................... 150 6,731
-----------
38,190
-----------
DRUGS AND HEALTH CARE -- 1.2%
F.H. Faulding (Australia) ......................... 1,100 4,884
Horizon Mental Health Management (US) ............. 300 3,787
Protein Design Labs* (US) ......................... 340 7,098
-----------
15,769
-----------
ELECTRICAL DISTRIBUTION -- 0.9%
Trifast (UK) ...................................... 2,600 11,110
-----------
ELECTRONICS -- 2.8%
Electro Scientific Industries (US) ................ 140 4,672
ISA International (UK) ............................ 6,500 12,023
Otra N.V. (Netherlands) ........................... 94 19,701
-----------
36,396
-----------
FARM EQUIPMENT -- 0.6%
AGCO (US) ......................................... 200 7,500
-----------
FINANCIAL SERVICES -- 1.3%
Finnveden (Sweden) ................................ 1,190 10,805
T. Rowe Price (US) ................................ 140 5,407
-----------
16,212
-----------
LEISURE -- 0.5%
Speedway Motorsports (US) ......................... 275 5,947
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-19 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
MANUFACTURING -- 7.7%
Angpanne Foreningen (Class B) (Sweden) ............ 800 $ 12,326
David Brown Group (UK) ............................ 2,500 9,009
David Brown Group Rights* (UK) .................... 357 1,286
Equipements et Composants pour l'Industrie
Automobile (France) ............................. 40 5,491
Forsheda (Class B) (Sweden) ....................... 543 13,147
Kalmar Industries* (Sweden) ....................... 563 8,829
Namura Shipbuilding (Japan) ....................... 1,000 3,424
Nichicon (Japan) .................................. 1,000 12,042
Sodick (Japan) .................................... 1,000 7,308
Tsudakoma (Japan) ................................. 1,000 6,422
Valmet Oy (Finland) ............................... 910 20,566
-----------
99,850
-----------
MEDIA -- 0.9%
Katz Media Group (US) ............................. 300 4,762
United Video Satellite Group (Class A)* (US) ...... 245 7,074
-----------
11,836
-----------
MEDICAL PRODUCTS AND TECHNOLOGY -- 1.8%
Hitachi Medical (Japan) ........................... 1,000 15,347
Life Sciences International (UK) .................. 4,000 7,781
-----------
23,128
-----------
METALS -- 1.3%
Nakayama Steel Works (Japan) ...................... 1,000 5,501
Sumitomo Sitex (Japan) ............................ 1,000 10,743
-----------
16,244
-----------
PAPER AND PACKAGING -- 2.1%
Bobst AG (Switzerland) ............................ 6 9,132
Rengo (Japan) ..................................... 1,000 6,871
Wace Group (UK) ................................... 3,000 10,954
-----------
26,957
-----------
RESTAURANTS --1.3%
International House of Pancakes* (US) ............. 145 3,770
Pizza Express (UK) ................................ 5,000 12,517
-----------
16,287
-----------
RETAILING --2.6%
Adelsten (Class B) (Norway) ....................... 30 3,604
Frost Group (UK) .................................. 3,000 13,155
General Nutrition Companies* (US) ................. 130 4,534
Hornbach Baumarkt (Germany) ....................... 19 12,850
-----------
34,143
-----------
TECHNOLOGY --3.8%
Credence Systems* (US) ............................ 255 7,650
Electronics for Imaging* (US) ..................... 170 8,904
Exar* (US) ........................................ 435 12,724
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-20 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares or
Principal
Amount Value
---------- -----
TECHNOLOGY (continued)
FSI International* (US) ........................... 300 shs. $ 7,050
PRI Automation* (US) .............................. 230 7,590
Sanmina* (US) ..................................... 140 5,373
-----------
49,291
-----------
MISCELLANEOUS --8.3%
BUT (France) ...................................... 42 9,364
Industria Macchine Auto (Italy) ................... 300 1,420
Jean Pascale (Germany) ............................ 36 11,028
LEM Holdings (Switzerland) ........................ 67 19,811
Sylea (France) .................................... 205 20,610
Technip* (France) ................................. 128 7,980
TH Loy Industries (Malaysia) ...................... 2,000 8,450
Thorkild Kristensen (Denmark) ..................... 325 19,693
Yue Yuen Industrial (Hong Kong) ................... 40,000 9,719
-----------
108,075
-----------
Total Common Stocks (Cost $642,135) ............... 671,674
-----------
CONVERTIBLE BONDS -- 0.5% (Cost $6,502)
MANUFACTURING -- 0.5%
Gujurat Ambuja Cement (India) 3 1/2%, 6/30/1999 ... $5,000 6,834
-----------
Total Investments -- 52.4% (Cost $648,637) ........ 678,508
Other Assets Less Liabilities -- 47.6% ............ 616,372
-----------
Net Assets -- 100.0% .............................. $ 1,294,880
===========
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Principal
Amount Value
--------- -----
CORPORATE BONDS -- 50.1%
ALUMINUM -- 3.1%
Kaiser Aluminum 12 3/4%, due 2/1/2003 ............. $8,000 $ 8,600
-----------
BROADCASTING -- 4.9%
Allbritton Communications 11 1/2%, due 8/15/2004 .. 7,000 7,385
NWCG Holdings 0%/13 1/2%, due 6/15/1999 ........... 10,000 6,225
-----------
13,610
-----------
CABLE SYSTEMS -- 9.2%
Cablevision Systems 10 3/4%, due 4/1/2004 ......... 8,000 8,390
Comcast 10 5/8%, due 7/15/2012 .................... 8,000 8,590
Le Groupe Videotron Ltee 10 5/8%, due 2/15/2005 ... 8,000 8,480
-----------
25,460
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-21 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
-------- -----
CELLULAR -- 2.9%
Centennial Cellular Corp., 10 1/8%, due 5/15/2005 . $8,000 $ 7,960
-----------
GAMING/HOTEL -- 8.8%
Aztar Corp., 11 3/4%, due 6/15/2002 ............... 8,000 8,000
Hollywood Casino Corp., 14%, due 4/1/1998 ......... 8,000 8,840
Trump Plaza Funding, Inc., 10 7/8%, due 6/15/2001.. 8,000 7,400
-----------
24,240
-----------
HEALTH CARE -- 3.2%
OrNda Healthcorp., 12 1/4%, due 5/15/2002 ......... 8,000 8,840
-----------
HOME BUILDING AND LAND DEVELOPMENT -- 2.9%
Continental Homes Holding Corp., 12%, due 8/1/1999 8,000 8,120
-----------
PAPER AND PACKAGING -- 2.9%
Stone Container 9 7/8%, due 2/1/2001 .............. 8,000 8,000
-----------
PUBLISHING -- 3.0%
K-III Communications 10 5/8%, due 5/1/2002 ........ 8,000 8,400
-----------
RETAILING -- 3.1%
Thrifty Payless 11 3/4%, due 4/15/2003 ............ 8,000 8,520
-----------
SUPERMARKETS -- 3.0%
Pathmark Stores 11 5/8%, due 6/15/2002 ............ 8,000 8,440
-----------
TELECOMMUNICATIONS -- 3.1%
Mobile Telecommunication Technologies 13 1/2%,
due 12/15/2002 .................................. 8,000 8,540
-----------
Total Investments -- 50.1% (Cost $138,188) ........ 138,730
Other Assets Less Liabilities -- 49.9% ............ 138,170
-----------
Net Assets -- 100.0% .............................. $ 276,900
===========
SELIGMAN INCOME PORTFOLIO
Shares Value
------ -----
CONVERTIBLE SECURITIES -- 48.6%
CONVERTIBLE PREFERRED STOCKS -- 16.0%
BANKING AND FINANCE -- 2.7%
Alexander & Alexander (Series A) $3.625+ .......... 1,500 $ 75,375
National City $4.00 ............................... 3,300 232,650
-----------
308,025
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-22 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
ENERGY -- 1.9%
Unocal $3.50+ ..................................... 4,000 shs. $ 215,000
-----------
ENVIRONMENTAL SERVICES -- 0.9%
Browning Ferris 7 1/4% ............................ 3,000 109,500
-----------
FOOD -- 2.5%
ConAgra (Series E) $1.6875 ........................ 8,000 283,000
-----------
RETAILING -- 0.7%
TJX Companies $3.125 .............................. 2,000 84,375
-----------
TRANSPORTATION -- 4.4%
GATX $3.875 ....................................... 5,000 280,000
Sea Containers $4.00 .............................. 5,000 227,500
-----------
507,500
-----------
TELECOMMUNICATIONS -- 2.1%
Mobile Telecommunication Technologies $2.25+ ...... 6,500 242,125
-----------
MISCELLANEOUS -- 0.8%
Corning (Delaware) 6% ............................. 1,700 86,913
-----------
Total Convertible Preferred Stocks (Cost $1,785,545) 1,836,438
-----------
SUBORDINATED CONVERTIBLE BONDS -- 32.6%
DIVERSIFIED -- 1.9%
MascoTech 4 1/2%, 12/15/2003 ...................... $300,000 218,625
-----------
DRUGS AND HEALTH CARE -- 1.4%
Pharmaceutical Marketing Services 6 1/4%, 2/1/2003+ 235,000 159,800
-----------
ELECTRONICS -- 1.7%
Micropolis 6%, 3/15/2012 .......................... 350,000 198,187
-----------
ENERGY -- 4.9%
Kelley Oil & Gas 8 1/2%, 4/1/2000 ................. 285,000 237,263
Santa Fe Pipelines 10.418%, 8/15/2010 ............. 250,000 321,250
-----------
558,513
-----------
ENTERTAINMENT/PUBLISHING -- 1.3%
Time Warner 8 3/4%, 1/10/2015 ..................... 140,000 145,600
-----------
ENVIRONMENTAL SERVICES -- 2.1%
USA Waste Services 8 1/2%, 10/15/2002 ............. 200,000 236,500
-----------
INDUSTRIAL GOODS AND SERVICES -- 3.0%
James River 6.70%, 11/15/2003 ..................... 350,000 338,370
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-23 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount Value
--------- -----
INSURANCE -- 1.8%
Trenwick Group 6%, 12/15/1999 ..................... $200,000 $ 203,000
-----------
MACHINERY -- 1.8%
Cooper Industries 7.05%, 1/1/2015 ................. 200,000 207,500
-----------
RETAILING -- 1.6%
CML Group 5 1/2%, 1/15/2003 ....................... 250,000 187,500
-----------
TECHNOLOGY -- 3.2%
Bay Networks, 5 1/4%, 5/15/2003+ .................. 100,000 95,125
EMC 4 1/4%, 1/1/2001 .............................. 200,000 270,000
-----------
365,125
-----------
TELECOMMUNICATIONS -- 4.5%
LDDS Communications 5%, 8/15/2003 ................. 250,000 238,750
Network Equipment 7 1/4%, 5/15/2014 ............... 300,000 282,000
-----------
520,750
-----------
TEXTILES -- 2.6%
Unifi 6%, 3/15/2002 ............................... 300,000 300,375
-----------
TRANSPORTATION -- 0.8%
Airborne Freight 6 3/4%, 8/15/2001 ................ 100,000 98,000
-----------
Total Subordinated Convertible Bonds (Cost $3,670,423) 3,737,845
-----------
Total Convertible Securities (Cost $5,455,968) .... 5,574,283
-----------
CORPORATE BONDS -- 17.5%
AUTOMOTIVE -- 6.0%
Chrysler Financial 6 1/2%, 6/15/1998 .............. 200,000 200,182
Ford Motor Credit 6 3/4%, 8/15/2008 ............... 250,000 243,125
General Motors Acceptance 5 5/8%, 2/1/1999 ........ 250,000 242,363
-----------
685,670
-----------
BANKING AND FINANCE -- 3.1%
Capital One Bank 8 1/8%, 3/1/2000 ................. 250,000 262,015
First USA Bank 5 3/4%, 1/15/1999 .................. 100,000 96,906
-----------
358,921
-----------
INSURANCE -- 2.4%
AEGON N.V. 8%, 8/15/2006 .......................... 250,000 270,410
-----------
TELECOMMUNICATIONS -- 3.5%
United Telecommunications 9 1/2%, 4/1/2003 ........ 350,000 402,198
-----------
MISCELLANEOUS -- 2.5%
Tenneco Credit 9 5/8%, 8/15/2001 .................. 250,000 285,249
-----------
Total Corporate Bonds (Cost $1,958,084) ........... 2,002,448
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-24 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1995
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Shares or
Principal
Amount Value
--------- -----
COMMON STOCKS -- 21.9%
BANKING AND FINANCE -- 4.4%
Bank of Boston .................................... 8,539 shs. $ 320,213
Chemical Banking .................................. 3,820 180,495
-----------
500,708
-----------
CHEMICALS -- 2.2%
Dow Chemical ...................................... 3,500 251,562
-----------
ELECTRIC AND GAS UTILITIES -- 4.6%
Atlanta Gas and Light ............................. 3,000 104,250
CINergy ........................................... 9,718 255,098
Entergy ........................................... 2,600 62,725
New England Electric .............................. 3,000 103,500
-----------
525,573
-----------
MINERALS -- 2.2%
Freeport-McMoRan .................................. 14,250 251,156
-----------
RETAILING -- 0.4%
Kmart ............................................. 3,200 46,800
-----------
STEEL -- 1.4%
Inland Steel Industries ........................... 5,406 164,883
-----------
TRANSPORTATION -- 2.4%
Consolidated Freightways .......................... 10,000 221,250
NFC ............................................... 20,000 51,342
-----------
272,592
-----------
UTILITIES/TELECOMMUNICATIONS -- 4.3%
Bell Atlantic ..................................... 4,000 224,000
Century Telephone ................................. 5,921 168,008
GTE ............................................... 3,000 102,375
-----------
494,383
-----------
Total Common Stocks (Cost $2,031,698) ............. 2,507,657
-----------
U.S. GOVERNMENT SECURITIES -- 4.4% (Cost $504,296)
U.S. Treasury Notes 7 1/4%, 11/15/1996 ............ $500,000 509,531
-----------
REPURCHASE AGREEMENTS -- 6.1% (5 1/4% maturing
7/5/1995) (Cost $700,000)
HSBC Securities, Inc., collateralized by:
$700,000 U.S. Treasury Notes 6 1/2%, 5/15/1997,
with a fair market value of $714,409 ........... 700,000 700,000
-----------
Total Investments -- 98.5% (Cost $10,650,046) ..... 11,293,919
Other Assets Less Liabilities -- 1.5% ............. 174,762
-----------
Net Assets -- 100.0% .............................. $11,468,681
===========
- ----------
See notes to financial statements.
-- P-25 --
<PAGE>
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman
ASSETS: Seligman Cash Common Communications Fixed Income
Investments, at value (see Capital Management Stock and Information Securities
portfolios of investments): Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Common Stocks ............................ $6,244,339 $ -- $21,524,930 $11,009,131 $ --
Convertible Securities ................... -- -- 350,938 -- --
U.S. Government Securities
and Agencies .......................... -- 1,928,328 -- -- 2,044,294
Corporate Bonds .......................... -- -- -- -- 1,342,911
Commercial Paper ......................... -- 1,264,369 -- -- --
Repurchase Agreements .................... 350,000 650,000 1,250,000 -- 200,000
Fixed Time Deposits ...................... -- -- -- 1,000,000 --
---------- ---------- ----------- ----------- ----------
Total Investments ........................ 6,594,339 3,842,697 23,125,868 12,009,131 3,587,205
Cash ..................................... 110,819 170,186 159,880 1,011,195 137,306
Receivable for Capital Stock sold ........ 26,066 -- 80,991 482,928 --
Interest and dividends receivable ........ 4,868 284 56,766 368 73,186
Receivable from associated companies ..... 1,111 1,682 1,111 1,827 1,207
Receivable for securities sold ........... -- -- 182,211 -- --
Other .................................... -- -- -- -- --
---------- ---------- ----------- ----------- ----------
Total Assets ............................. 6,737,203 4,014,849 23,606,827 13,505,449 3,798,904
---------- ---------- ----------- ----------- ----------
LIABILITIES:
Payable for Capital Stock repurchased .... 1,675 116 7,384 -- 5,477
Payable for securities purchased ......... -- -- 155,726 1,318,621 --
Accrued expenses, taxes, and other ....... 14,245 11,619 21,607 15,922 12,861
---------- ---------- ----------- ----------- ----------
Total Liabilities ........................ 15,920 11,735 184,717 1,334,543 18,338
---------- ---------- ----------- ----------- ----------
NET ASSETS ............................... $6,721,283 $4,003,114 $23,422,110 $12,170,906 $3,780,566
========== ========== =========== =========== ==========
COMPOSITION OF NET ASSETS:
Capital Stock, at par .................... $ 470 $ 4,004 $ 1,492 $ 828 $ 369
Additional paid-in capital ............... 5,531,715 3,999,504 15,920,907 10,368,008 3,593,559
Undistributed/accumulated net
investment income (loss) .............. 14,198 -- 257,531 (15,999) 112,743
Accumulated net realized gain (loss) ..... 69,786 (394) 1,996,245 23,667 (107,600)
Net unrealized appreciation/
depreciation of investments ........... 1,105,114 -- 5,287,497 1,794,402 181,495
Net unrealized appreciation/depreciation
on translation of assets and liabilities
denominated in foreign currencies ..... -- -- (41,562) -- --
---------- ---------- ----------- ----------- ----------
NET ASSETS ............................... $6,721,283 $4,003,114 $23,422,110 $12,170,906 $3,780,566
========== ========== =========== =========== ==========
Shares of Capital Stock
($.001 par value) outstanding ......... 470,095 4,003,508 1,491,709 828,398 368,668
========== ========== =========== =========== ==========
Net Asset Value per share ................ $ 14.30 $ 1.00 $ 15.70 $ 14.69 $ 10.25
========== ========== =========== =========== ==========
</TABLE>
- ----------------
See notes to financial statements.
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Henderson Seligman
ASSETS: Seligman Henderson Global Smaller High-Yield Seligman
Investments, at value (see Frontier Global Companies Bond Income
portfolios of investments): Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
Common Stocks ............................ $1,378,191 $1,816,946 $ 671,674 $ -- $ 2,507,657
Convertible Securities ................... -- 37,406 6,834 -- 5,574,283
U.S. Government Securities
and Agencies .......................... -- -- -- -- 509,531
Corporate Bonds .......................... -- -- -- 138,730 2,002,448
Commercial Paper ......................... -- -- -- -- --
Repurchase Agreements .................... -- -- -- -- 700,000
Fixed Time Deposits ...................... 700,000 -- -- -- --
---------- ---------- ---------- -------- -----------
Total Investments ........................ 2,078,191 1,854,352 678,508 138,730 11,293,919
Cash ..................................... 502,992 372,193 677,951 154,013 151,206
Receivable for Capital Stock sold ........ 136,119 13,062 69,505 1,900 14,336
Interest and dividends receivable ........ 731 6,805 549 3,872 131,136
Receivable from associated companies ..... 1,418 2,794 4,827 7,059 1,111
Receivable for securities sold ........... 32,464 39,071 -- -- 112,090
Other .................................... -- -- -- 11,000 --
---------- ---------- ---------- -------- -----------
Total Assets ............................. 2,751,915 2,288,277 1,431,340 316,574 11,703,798
---------- ---------- ---------- -------- -----------
LIABILITIES:
Payable for Capital Stock repurchased .... -- -- -- -- 2,867
Payable for securities purchased ......... 286,533 59,068 125,955 24,385 215,745
Accrued expenses, taxes, and other ....... 9,845 14,148 10,505 15,289 16,505
---------- ---------- ---------- -------- -----------
Total Liabilities ........................ 296,378 73,216 136,460 39,674 235,117
---------- ---------- ---------- -------- -----------
NET ASSETS ............................... $2,455,537 $2,215,061 $1,294,880 $276,900 $11,468,681
========== ========== ========== ======== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par .................... $ 200 $ 192 $ 119 $ 28 $ 1,040
Additional paid-in capital ............... 2,322,137 2,165,618 1,262,336 275,984 10,493,550
Undistributed/accumulated net
investment income (loss) .............. (2,397) (24,827) 3,019 346 305,056
Accumulated net realized gain (loss) ..... 4,568 11,394 (995) -- 25,171
Net unrealized appreciation/
depreciation of investments ........... 131,029 (89,410) 17,988 542 638,437
Net unrealized appreciation/depreciation
on translation of assets and liabilities
denominated in foreign currencies ..... -- 152,094 12,413 -- 5,427
---------- ---------- ---------- -------- -----------
NET ASSETS ............................... $2,455,537 $2,215,061 $1,294,880 $276,900 $11,468,681
========== ========== ========== ======== ===========
Shares of Capital Stock
($.001 par value) outstanding ......... 200,239 192,479 119,450 27,597 1,040,159
========== ========== ========== ======== ===========
Net Asset Value per share ................ $ 12.26 $ 11.51 $ 10.84 $ 10.03 $ 11.03
========== ========== ========== ======== ===========
</TABLE>
-- P-26 -- & -- P-27 --
<PAGE>
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Operations (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman
Seligman Cash Common Communications Fixed Income
Capital Management Stock and Information Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends* .................................. $ 27,687 $ -- $ 276,739 $ 429 $ --
Interest .................................... 7,776 90,278 44,134 168 126,330
-------- -------- ---------- ---------- --------
Total investment income ..................... 35,463 90,278 320,873 597 126,330
-------- -------- ---------- ---------- --------
Expenses:
Management fee .............................. 12,327 6,458 42,859 13,103 7,209
Auditing fee ................................ 4,917 4,917 4,917 7,167 4,917
Legal fee ................................... 1,595 1,595 1,595 1,595 1,595
Shareholder reports and communications ...... 1,345 1,345 1,345 1,103 1,345
Directors' fees and expenses ................ 1,208 1,208 1,208 1,189 1,208
Registration ................................ 1,203 1,243 1,318 3,118 1,118
Custody and related services ................ -- -- 5,699 -- --
Miscellaneous ............................... 892 658 1,624 411 1,364
-------- -------- ---------- ---------- --------
Total expenses before reimbursement ......... 23,487 17,424 60,565 27,686 18,756
Reimbursement of expenses ................... (4,999) (17,424) -- (11,090) (7,946)
-------- -------- ---------- ---------- --------
Total expenses after reimbursement .......... 18,488 -- 60,565 16,596 10,810
-------- -------- ---------- ---------- --------
Net investment income (loss) ................ 16,975 90,278 260,308 (15,999) 115,520
-------- -------- ---------- ---------- --------
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions:
Net realized gain (loss) on investments ..... 69,786 -- 1,996,245 23,667 (26,569)
Net realized gain (loss) from foreign
currency transactions .................... -- -- -- -- --
Net change in unrealized appreciation/
depreciation of investments .............. 661,496 -- 587,540 1,775,891 275,834
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies .................... -- -- (41,522) -- --
-------- -------- ---------- ---------- --------
Net gain on investments and foreign
currency transactions .................... 731,282 -- 2,542,263 1,799,558 249,265
-------- -------- ---------- ---------- --------
Increase in net assets from operations ...... $748,257 $ 90,278 $2,802,571 $1,783,559 $364,785
======== ======== ========== ========== ========
- ----------------
*Net of foreign tax withheld as follows: $ 69 $ -- $ 4,944 $ -- $ --
</TABLE>
**For the period May 1, 1995 (commencement of operations) to June 30, 1995.
See notes to financial statements.
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
For the six months ended June 30, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Henderson Seligman
Seligman Henderson Global Smaller High-Yield Seligman
Frontier Global Companies Bond Income
Portfolio Portfolio Portfolio Portfolio** Portfolio
--------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends* .................................. $ 883 $ 19,005 $ 2,643 $ -- $ 81,071
Interest .................................... 117 6,042 3,828 432 259,153
-------- -------- -------- -------- ----------
Total investment income ..................... 1,000 25,047 6,471 432 340,224
-------- -------- -------- -------- ----------
Expenses:
Management fee .............................. 2,685 9,341 2,222 62 21,581
Auditing fee ................................ 7,167 4,917 7,167 2,597 4,917
Legal fee ................................... 1,595 1,595 1,595 693 1,595
Shareholder reports and communications ...... 1,103 1,103 1,103 375 1,345
Directors' fees and expenses ................ 1,189 1,189 1,189 532 1,208
Registration ................................ 1,498 1,253 1,318 1,163 1,318
Custody and related services ................ -- 12,712 4,996 1,163 --
Miscellaneous ............................... 412 5,904 1,859 560 2,445
-------- -------- -------- -------- ----------
Total expenses before reimbursement ......... 15,649 38,014 21,449 7,145 34,409
Reimbursement of expenses ................... (12,252) (26,108) (18,543) (7,059) (2,018)
-------- -------- -------- -------- ----------
Total expenses after reimbursement .......... 3,397 11,906 2,906 86 32,391
-------- -------- -------- -------- ----------
Net investment income (loss) ................ (2,397) 13,141 3,565 346 307,833
-------- -------- -------- -------- ----------
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions:
Net realized gain (loss) on investments ..... 4,568 (37,424) (1,035) -- 44,284
Net realized gain (loss) from foreign
currency transactions .................... -- 12,204 (506) -- --
Net change in unrealized appreciation/
depreciation of investments .............. 121,969 (86,630) 14,709 542 740,304
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies .................... -- 124,380 11,840 -- 5,447
-------- -------- -------- -------- ----------
Net gain on investments and foreign
currency transactions .................... 126,537 12,530 25,008 542 790,035
-------- -------- -------- -------- ----------
Increase in net assets from operations ...... $124,140 $ 5,671 $ 28,573 $ 888 $1,097,868
======== ======== ======== ======== ==========
- ----------------
*Net of foreign tax withheld as follows: $ -- $ 2,719 $ 339 $ -- $ --
</TABLE>
**For the period May 1, 1995 (commencement of operations) to June 30, 1995.
See notes to financial statements.
-- P-28 -- & -- P-29 --
<PAGE>
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman
Capital Portfolio Cash Management Portfolio Common Stock Portfolio
-------------------------- --------------------------- -------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ....... $ 16,975 $ 5,975 $ 90,278 $ 127,857 $ 260,308 $ 515,701
Net realized gain (loss) on
investments ..................... 69,786 642,271 -- (240) 1,996,245 1,108,365
Net realized gain from foreign
currency transactions ........... -- -- -- -- -- 20
Net change in unrealized
appreciation/depreciation
of investments .................. 661,496 (912,365) -- -- 587,540 (1,604,789)
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies .............. -- -- -- -- (41,522) (40)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations ................. 748,257 (264,119) 90,278 127,617 2,802,571 19,257
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
Net investment income .............. -- (7,465) (90,278) (127,857) -- (517,958)
Realized gain on investments ....... -- (641,977) -- -- -- (1,108,564)
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from
distributions ................... -- (649,442) (90,278) (127,857) -- (1,626,522)
----------- ----------- ----------- ----------- ----------- -----------
Capital share transactions:
Net proceeds from sale of shares ... 1,104,941 3,619,176 2,539,315 2,322,638 5,700,078 9,040,524
Investment of dividends ............ -- 7,465 90,278 127,857 -- 517,958
Shares issued in payment of gain
distributions ................... -- 641,977 -- -- -- 1,108,564
----------- ----------- ----------- ----------- ----------- -----------
Total .............................. 1,104,941 4,268,618 2,629,593 2,450,495 5,700,078 10,667,046
----------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased ......... (1,074,289) (3,298,449) (1,856,320) (2,322,134) (5,248,112) (10,753,287)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from capital share transactions . 30,652 970,169 773,273 128,361 451,966 (86,241)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets .. 778,909 56,608 773,273 128,121 3,254,537 (1,693,506)
Net Assets:
Beginning of period ................ 5,942,374 5,885,766 3,229,841 3,101,720 20,167,573 21,861,079
----------- ----------- ----------- ----------- ----------- -----------
End of period ...................... $ 6,721,283 $ 5,942,374 $ 4,003,114 $ 3,229,841 $23,422,110 $20,167,573
=========== =========== =========== =========== =========== ===========
</TABLE>
- ----------------
* Commencement of operations.
See notes to financial statements.
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman
Communications and Fixed Income Seligman
Information Portfolio Securities Portfolio Frontier Portfolio
------------------------ ----------------------- ----------------------
Six Months 10/11/94* Six Months Year Six Months 10/11/94*
Ended to Ended Ended Ended to
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
----------- -------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operations: $ (15,999) $ (442) $ 115,520 $ 179,900 $ (2,397) $ (106)
Net investment income (loss) .......
Net realized gain (loss) on 23,667 -- (26,569) (81,031) 4,568 --
investments .....................
Net realized gain from foreign -- -- -- -- -- --
currency transactions ...........
Net change in unrealized
appreciation/depreciation 1,775,891 18,511 275,834 (225,410) 121,969 9,060
of investments ..................
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies .............. -- -- -- -- -- --
----------- -------- ---------- ---------- ---------- ---------
Increase (decrease) in net assets
from operations ................. 1,783,559 18,069 364,785 (126,541) 124,140 8,954
----------- -------- ---------- ---------- ---------- ---------
Distributions to shareholders:
Net investment income .............. -- -- -- (181,555) -- --
Realized gain on investments ....... -- -- -- -- -- --
----------- -------- ---------- ---------- ---------- ---------
Decrease in net assets from
distributions ................... -- -- -- (181,555) -- --
----------- -------- ---------- ---------- ---------- ---------
Capital share transactions:
Net proceeds from sale of shares ... 9,983,468 476,552 631,182 2,264,201 2,188,321 159,997
Investment of dividends ............ -- -- -- 181,555 -- --
Shares issued in payment of gain
distributions ................... -- -- -- -- -- --
----------- -------- ---------- ---------- ---------- ---------
Total .............................. 9,983,468 476,552 631,182 2,445,756 2,188,321 159,997
----------- -------- ---------- ---------- ---------- ---------
Cost of shares repurchased ......... (90,742) -- (821,775) (2,306,325) (25,875) --
----------- -------- ---------- ---------- ---------- ---------
Increase (decrease) in net assets
from capital share transactions . 9,892,726 476,552 (190,593) 139,431 2,162,446 159,997
----------- -------- ---------- ---------- ---------- ---------
Increase (decrease) in net assets .. 11,676,285 494,621 174,192 (168,665) 2,286,586 168,951
Net Assets:
Beginning of period ................ 494,621 -- 3,606,374 3,775,039 168,951 --
----------- -------- ---------- ---------- ---------- ---------
End of period ...................... $12,170,906 $494,621 $3,780,566 $3,606,374 $2,455,537 $168,951
=========== ======== ========== ========== ========== =========
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Seligman
Henderson
Global Portfolio
------------------------
Six Months Year
Ended Ended
6/30/95 12/31/94
----------- -----------
Operations: $ 13,141 $ 13,397
Net investment income (loss) .......
Net realized gain (loss) on (37,424) 9,138
investments .....................
Net realized gain from foreign 12,204 3,259
currency transactions ...........
Net change in unrealized
appreciation/depreciation (86,630) (44,914)
of investments ..................
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies .............. 124,380 29,924
----------- -----------
Increase (decrease) in net assets
from operations ................. 25,671 10,804
----------- -----------
Distributions to shareholders:
Net investment income .............. -- (9,661)
Realized gain on investments ....... -- (17,511)
----------- -----------
Decrease in net assets from
distributions ................... -- (27,172)
----------- -----------
Capital share transactions:
Net proceeds from sale of shares ... 755,738 1,317,845
Investment of dividends ............ -- 9,661
Shares issued in payment of gain
distributions ................... -- 17,511
----------- -----------
Total .............................. 755,738 1,345,017
----------- -----------
Cost of shares repurchased ......... (342,653) (200,626)
----------- -----------
Increase (decrease) in net assets
from capital share transactions . 413,085 1,144,391
----------- -----------
Increase (decrease) in net assets .. 438,756 1,128,023
Net Assets:
Beginning of period ................ 1,776,305 648,282
----------- -----------
End of period ...................... $2,215,061 $1,776,305
=========== ===========
-- -30 & -- P-31 --
<PAGE>
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman
Henderson Seligman
Global Smaller High-Yield Seligman
Companies Portfolio Bond Portfolio Income Portfolio
---------------------------- ------------- -----------------------------
Six Months 10/11/94* 5/1/95* Six Months Year
Ended to to Ended Ended
6/30/95 12/31/94 6/30/95 6/30/95 12/31/94
---------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income ................ $ 3,565 $ 517 $ 346 $ 307,833 $ 678,957
Net realized gain (loss) on
investments ....................... (1,035) -- -- 44,284 (19,113)
Net realized gain (loss) from
foreign currency transactions ..... (506) (58) -- -- 10
Net change in unrealized
appreciation/depreciation
of investments .................... 14,709 3,279 542 740,304 (1,298,035)
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies ................ 11,840 573 -- 5,447 (20)
---------- -------- -------- ----------- -----------
Increase (decrease) in net assets
from operations ................... 28,573 4,311 888 1,097,868 (638,201)
---------- -------- -------- ----------- -----------
Distributions to shareholders:
Net investment income ................ -- (537) -- -- (685,315)
Realized gain on investments ......... -- -- -- -- --
---------- -------- -------- ----------- -----------
Decrease in net assets from
distributions ..................... -- (537) -- -- (685,315)
---------- -------- -------- ----------- -----------
Capital share transactions:
Net proceeds from sale of shares ..... 1,180,741 127,199 276,012 3,385,478 4,595,781
Investment of dividends .............. -- 537 -- -- 685,315
Shares issued in payment of gain
distributions ..................... -- -- -- -- --
---------- -------- -------- ----------- -----------
Total ................................ 1,180,741 127,736 276,012 3,385,478 5,281,096
---------- -------- -------- ----------- -----------
Cost of shares repurchased ........... (45,944) -- -- (3,064,942) (5,127,246)
---------- -------- -------- ----------- -----------
Increase in net assets from
capital share transactions ........ 1,134,797 127,736 276,012 320,536 153,850
---------- -------- -------- ----------- -----------
Increase (decrease) in net assets .... 1,163,370 131,510 276,900 1,418,404 (1,169,666)
Net Assets:
Beginning of period .................. 131,510 -- -- 10,050,277 11,219,943
---------- -------- -------- ----------- -----------
End of period ........................ $1,294,880 $131,510 $276,900 $11,468,681 $10,050,277
========== ======== ======== =========== ===========
</TABLE>
- ----------------
* Commencement of operations.
See notes to financial statements.
-- P-32 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management
investment company consisting of ten separate portfolios (the "Portfolios"),
"Seligman Capital Portfolio" ("Capital Portfolio"), "Seligman Cash Management
Portfolio" ("Cash Management Portfolio"), "Seligman Common Stock Portfolio"
("Common Stock Portfolio"), "Seligman Communications and Information Portfolio"
("Communications and Information Portfolio"), "Seligman Fixed Income Securities
Portfolio" ("Fixed Income Securities Portfolio"), "Seligman Frontier Portfolio"
("Frontier Portfolio"), "Seligman Henderson Global Portfolio" ("Global
Portfolio"), "Seligman Henderson Global Smaller Companies Portfolio" ("Global
Smaller Companies Portfolio"), "Seligman High-Yield Bond Portfolio" ("High-Yield
Bond Portfolio") and "Seligman Income Portfolio" ("Income Portfolio"), each
designed to meet different investment goals. Shares of the Fund are currently
provided as the investment medium for Canada Life of America Variable Annuity
Account 2 ("CLVA-2") and Canada Life of America Annuity Account 3 ("CLVA-3"),
each established by Canada Life Insurance Company of America ("Canada Life").
CLVA-2 is registered as a unit investment trust under the Investment Company Act
of 1940 (the "1940 Act") and funds variable annuity contracts (the "CLVA-2
Contracts") issued by Canada Life and distributed by Seligman Financial
Services, Inc. CLVA-3 is not registered or regulated as an investment company
under the 1940 Act in reliance on the exemption provided in Section 3(c)(11) of
the 1940 Act and funds variable annuity contracts (the "CLVA-3 Contracts")
issued by Canada Life and distributed by Seligman Financial Services, Inc.
CLVA-3 Contracts may be purchased only by pension or profit-sharing employee
benefit plans that satisfy the requirements for qualification set forth in
Section 401 of the Internal Revenue Code of 1986, as amended. Shares of the Fund
are also provided as the investment medium for other variable annuity accounts
established by Canada Life or its affiliates ("Canada Life Separate Accounts").
Shares of the Fund (except Communications and Information Portfolio, Frontier
Portfolio, Global Portfolio, Global Smaller Companies Portfolio, and High-Yield
Bond Portfolio) are also provided as the investment medium for Seligman Mutual
Benefit Plan (the "Mutual Benefit Plan") established by MBLLife Assurance
Corporation ("MBL Life"). Significant accounting policies followed, all in
conformity with generally accepted accounting principles, are given below:
a. Investments in U.S. Government securities, bonds, convertible securities,
and stocks are valued at the most current market values or, in their absence,
at fair market value determined in accordance with procedures approved by the
Board of Directors. Securities traded on national exchanges are valued at the
last sales prices or, in their absence and in the case of over-the-counter
securities, a mean of closing bid and asked prices. Short-term holdings
maturing in 60 days or less are valued at amortized cost. Investments held by
Cash Management Portfolio are valued using the amortized cost method which
approximates fair value.
b. The Portfolios may invest up to 10% of their total assets in foreign
securities (except Global Portfolio and Global Smaller Companies Portfolio
which may invest up to 100% of their total assets in foreign securities).
Investments in foreign securities will usually be denominated in foreign
currencies, and the Portfolios may temporarily hold funds in foreign
currencies. The Portfolios may also invest in U.S. dollar-denominated
American Depository Receipts ("ADRs"), American Depository Shares ("ADSs"),
European Depository Receipts ("EDRs"), and Global Depository Receipts
("GDRs"). ADRs and ADSs are issued by domestic banks or trust companies and
evidence ownership of securities issued by foreign corporations. ADRs and
ADSs are traded on United States exchanges or over-the-counter and are not
included in the 10% limitation. EDRs and GDRs are receipts similar to ADRs
and ADSs and are typically issued by foreign banks or trust companies and
traded in Europe. The books and records of the Portfolios are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and liabilities,
at the closing daily rate of exchange as reported by a pricing service;
(ii) purchases and sales of investment securities, income and expenses, at
the rate of exchange prevailing on the respective dates of such
transactions.
The net asset values per share of Portfolios which invest in securities
denominated in foreign currencies will be affected by changes in currency
exchange rates. Changes in foreign currency exchange rates may also affect
the value of dividends and interest earned, gains and losses realized on
sales of securities and net investment income and gains, if any, to be
distributed to shareholders of the Portfolios. The rate of exchange between
the U.S. dollar and other currencies is determined by the forces of supply
and demand in the foreign exchange markets.
Net realized foreign exchange gains (losses) arise from sales of portfolio
securities, sales and maturities of short-term securities, sales of foreign
currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Portfolios' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of portfolio securities and other foreign currency
denominated assets and liabilities at period end, resulting from changes in
exchange rates.
The Portfolios separate that portion of the results of operations resulting
from changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities held in the Portfolios. Similarly,
the Portfolios separate the effect of changes in foreign exchange rates from
the fluctuations arising from changes in the market prices of portfolio
securities sold during the period.
-- P-33 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
c. The Global Portfolio and Global Smaller Companies Portfolio may enter into
forward currency contracts in order to hedge their exposure to changes in
foreign currency exchange rates on their foreign portfolio holdings, or other
amounts receivable or payable in foreign currency. A forward contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. Certain risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts. The contracts are valued daily at current exchange rates and
any unrealized gain or loss is included in net unrealized appreciation or
depreciation on translation of assets and liabilities denominated in foreign
currencies and forward currency contracts. The gain or loss, if any, arising
from the difference between the settlement value of the forward contract and
the closing of such contract, is included in net realized gain or loss from
foreign currency transactions. For federal income tax purposes, certain open
forward currency contracts are treated as sold on the last day of the fiscal
year and any gains or losses are recognized immediately. As a result, the
amount of income distributable to shareholders may vary from the amount
recognized for financial statement purposes.
d. The Portfolios' policy is to comply with the requirements of the Internal
Revenue Code applicable to Regulated Investment Companies and to distribute
substantially all of their taxable net income and net gain realized to
shareholders.
e. Investment transactions are recorded on trade dates. Interest income is
recorded on the accrual basis. The Portfolios amortize market discounts and
premiums on purchases of portfolio securities. Dividends receivable and
payable are recorded on ex-dividend dates. The Portfolios may enter into
repurchase agreements with commercial banks and with broker/dealers deemed to
be creditworthy by the Manager. Securities purchased subject to repurchase
agreements are deposited with the Portfolios' custodians and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. Procedures have been established to monitor, on a daily basis, the
market value of the repurchase agreements' underlying securities to ensure
the existence of the proper level of collateral.
f. Expenses directly attributable to each Portfolio are charged to such
Portfolio, and expenses that are applicable to more than one Portfolio are
allocated among them.
g. 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 primarily are caused by differences in the timing of the
recognition of certain components of income, expense or capital gain and the
recharacterization of foreign exchange gains or losses to either ordinary
income or 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 values per share of the Portfolios.
2. Until April 15, 1993, the Fund functioned exclusively as the investment
vehicle for the separate account options of the Mutual Benefit Plan issued by
Mutual Benefit Life Insurance Company in Rehabilitation ("Mutual Benefit Life").
On July 16, 1991, the Superior Court of New Jersey (the "Court") entered an
Order appointing the New Jersey Insurance Commissioner as Rehabilitator of
Mutual Benefit Life. The Commissioner was granted immediate exclusive possession
and control of, and title to, the business and assets of Mutual Benefit Life,
including the assets and liabilities of the Mutual Benefit Plan.
On November 10, 1993, the Court issued an Order of Confirmation which provided
for implementation of the Third Amended Plan of Rehabilitation of Mutual Benefit
Life (the "Plan of Rehabilitation"). On April 29, 1994, the Plan of
Rehabilitation was implemented. Substantially all of the assets and liabilities
of Mutual Benefit Life were transferred to MBL Life. In addition, the assets and
liabilities of the Mutual Benefit Plan were transferred to a separate account of
MBL Life. As a separate account, the assets and liabilities of the Mutual
Benefit Plan are maintained separate and apart from MBL Life's other assets and
liabilities. Also, as of April 29, 1994, the ownership of the stock of MBLLife
was transferred to a Trust. The Commissioner is the sole Trustee of the Trust.
MBL Life has decided that it will not accept applications for new contracts nor
will it accept additional purchase payments under existing contracts. In
addition, requests for transfers of amounts to the Fixed Accumulation Account
from the Plan will not be accepted. The ultimate impact of this decision on the
level of the Plan's assets cannot currently be determined. However, the impact
is not expected to be material.
-- P-34 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the period ended June 30, 1995, were as follows:
Portfolio Purchases Sales
-------- --------- -----
Capital $2,783,778 $2,945,817
Common Stock 8,170,928 8,340,396
Communications
and Information 9,076,883 204,372
Fixed Income Securities 3,193,235 3,102,869
Frontier 1,272,476 180,834
Global 863,566 525,920
Global Smaller Companies 560,606 50,252
High-Yield Bond 138,185 --
Income 3,410,705 2,394,304
Identified cost of investments sold is used for both financial statement and
federal income tax purposes.
At June 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 portfolio securities,
including the effects of foreign currency translations, were as follows:
Unrealized Unrealized
Portfolio Appreciation Depreciation
-------- ------------ -----------
Capital $1,377,147 $272,033
Common Stock 5,496,368 250,415
Communications
and Information 1,833,515 39,113
Fixed Income Securities 185,736 4,241
Frontier 143,705 12,676
Global 134,589 75,252
Global Smaller Companies 55,177 25,306
High-Yield Bond 692 150
Income 1,027,025 383,152
At December 31, 1994, the Cash Management Portfolio, the Fixed Income Securities
Portfolio and the Income Portfolio had net capital loss carryforwards of $394,
$81,031 and $19,113, respectively, which are available for offset against future
taxable net gains. These net capital loss carryforwards will expire in varying
amounts through 2002.
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities, exclusive of and
in addition to those retained by the Fund. 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 is calculated daily and payable monthly, equal to 0.40%, on an
annual basis, of Capital Portfolio's, Cash Management Portfolio's, Common Stock
Portfolio's, Fixed Income Securities Portfolio's, and Income Portfolio's daily
net assets; equal to 0.75%, on an annual basis of Communications and Information
Portfolio's and Frontier Portfolio's daily net assets; and equal to 0.50%, on an
annual basis of High-Yield Bond Portfolio's daily net assets. The Manager's fee
from the Global Portfolio and the Global Smaller Companies Portfolio is
calculated daily and payable monthly, equal to an annual rate of 1.00% of the
average daily net assets of each Portfolio, of which 0.90% is paid to Seligman
Henderson Co. (the "Subadviser"), a 50% owned affiliate of the Manager. The
Manager or Subadviser has agreed to reimburse expenses, other than the
management fee, which exceed 0.20% per annum of the average daily net assets of
each of the Portfolios (except Cash Management, Global and Global Smaller
Companies portfolios). The Manager, at its discretion, has elected to waive all
of its fee for, and reimburse all of the expenses of, the Cash Management
Portfolio until such time as the Manager determines. Effective May 1, 1995, the
Manager and Subadviser have agreed to reimburse expenses, other than management
fee, which exceed 0.40% (previously 0.20%) per annum of the average daily net
assets of Global and Global Smaller Companies Portfolios. For the six months
ended June 30, 1995, the Manager waived fees and/or reimbursed expenses of
$4,999, $17,424, $11,090, $7,946, $12,252, and $2,018, for the Capital
Portfolio, Cash Management Portfolio, Communications and Information Portfolio,
Fixed Income Securities Portfolio, Frontier Portfolio, and Income Portfolio,
respectively. For the same period, the Manager and Subadviser waived all of
their fees and the Subadviser reimbursed expenses totalling $26,108 and $18,543
for the Global Portfolio and Global Smaller Companies Portfolio, respectively.
For the period from May 1, 1995 (commencement of operations) to June 30, 1995,
the Manager reimbursed expenses of $7,059 for the High-Yield Bond Portfolio.
-- P-35 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)(continued)
- --------------------------------------------------------------------------------
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the CLVA-2 and CLVA-3 contracts and an affiliate of the Manager,
received commissions of $72,164 from Canada Life.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, and/or the Subadviser.
Fees of $19,000 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 annual cost of such fees and interest is included in directors'
fees and expenses, and the accumulated balance thereof at June 30, 1995, is
included in other liabilities. Deferred fees and the related accrued interest
are not deductible for federal income tax purposes until such amounts are paid.
5. At June 30, 1995, there were 20,000,000 shares of Capital Stock authorized
for each of the Capital, Common Stock, Communications and Information, Fixed
Income Securities, Frontier, Global, Global Smaller Companies, High-Yield Bond,
and Income Portfolios, and 100,000,000 shares for the Cash Management Portfolio,
all at a par value of $.001 per share.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
Capital Portfolio Cash Management Portfolio Common Stock Portfolio
------------------------- --------------------------- -------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares................ 83,695 250,641 2,539,315 2,322,638 389,444 602,357
Shares issued in payment of
dividends.................. -- 587 90,278 127,857 -- 37,506
Shares issued in payment
of gain distributions...... -- 50,470 -- -- -- 80,272
------- ------- --------- --------- ------- -------
Total......................... 83,695 301,698 2,629,593 2,450,495 389,444 720,135
------- ------- --------- --------- ------- -------
Shares repurchased............ (81,518) (227,501) (1,856,320) (2,322,134) (360,795) (716,170)
------- ------- --------- --------- ------- -------
Increase in shares............ 2,177 74,197 773,273 128,361 28,649 3,965
======= ======= ========= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Communications and Fixed Income
Information Portfolio Securities Portfolio Frontier Portfolio
--------------------------- ------------------------ --------------------------
Six Months 10/11/94* Six Months Year Six Months 10/11/94*
Ended to Ended Ended Ended to
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares................ 789,512 47,368 65,139 229,957 186,535 15,970
Shares issued in payment
of dividends............... -- -- -- 19,564 -- --
------- ------- -------- ------- ------- -------
Total......................... 789,512 47,368 65,139 249,521 186,535 15,970
------- ------- -------- ------- ------- -------
Shares repurchased............ (8,482) -- (85,537) (233,817) (2,266) --
------- ------- -------- ------- ------- -------
Increase (decrease) in shares. 781,030 47,368 (20,398) 15,704 184,269 15,970
======= ======= ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Global Smaller High-Yield
Global Portfolio Companies Portfolio Bond Portfolio Income Portfolio
---------------------- ------------------------ -------------- ----------------------
Six Months Year Six Months 10/11/94* 5/1/95* Six Months Year
Ended Ended Ended to to Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 6/30/95 12/31/94
-------- -------- -------- -------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Sale of shares ............... 66,839 114,731 111,046 12,701 27,597 328,807 423,636
Shares issued in payment
of dividends .............. -- 855 -- 53 -- -- 68,876
Shares issued in payment
of gain distributions ..... -- 1,550 -- -- -- -- --
------- ------- -------- ------- -------- ------- -------
Total ........................ 66,839 117,136 111,046 12,754 27,597 328,807 492,512
------- ------- -------- ------- -------- ------- -------
Shares repurchased ........... (31,048) (17,445) (4,350) -- -- (296,224) (470,827)
------- ------- -------- ------- -------- ------- -------
Increase in shares ........... 35,791 99,691 106,696 12,754 27,597 32,583 21,685
======= ======= ======== ======= ======== ======= =======
</TABLE>
- ----------
* Commencement of operations.
-- P-36 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Financial Highlights (unaudited)
- -------------------------------------------------------------------------------
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 Portfolio'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 a Portfolio's performance
assuming investors purchased shares of a Portfolio 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 returns exclude the effect of all
administration fees and asset based sales charges associated with variable
annuity contracts.
The total returns for periods of less than one year are not annualized.
<TABLE>
<CAPTION>
Capital Portfolio
------------------------------------------------------------------
Six Months Year Ended December 31
Ended -----------------------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ............ $12.700 $14.950 $16.980 $17.740 $11.230 $11.620
------- ------- ------- ------- ------- -------
Net investment income (loss) .................... 0.037 0.015 0.021 (0.022) 0.079 0.044
Net realized and unrealized gain (loss)
on investments ................................ 1.563 (0.699) 1.928 1.202 6.547 (0.414)
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations .. 1.600 (0.684) 1.949 1.180 6.626 (0.370)
Dividends paid .................................. -- (0.018) (0.021) -- (0.088) (0.020)
Distributions from net gain realized ............ -- (1.548) (3.958) (1.940) (0.028) --
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value ...... 1.600 (2.250) (2.030) (0.760) 6.510 (0.390)
------- ------- ------- ------- ------- -------
Net asset value, end of period .................. $14.300 $12.700 $14.950 $16.980 $17.740 $11.230
======= ======= ======= ======= ======= =======
Total return based on net asset value ........... 12.60% (4.59)% 11.65% 6.80% 59.05% (3.18)%
Ratios/Supplemental Data:
Expenses to average net assets .................. 0.60%+ 0.60% 0.71% 0.91% 0.60% 2.15%
Net investment income (loss) to average
net assets .................................... 0.55%+ 0.10% 0.09% (0.14)% 0.56% 0.18%
Portfolio turnover .............................. 47.95% 67.39% 65.30% 54.95% 31.44% 28.94%
Net assets, end of period (000's omitted) ....... $6,721 $5,942 $5,886 $5,497 $5,812 $3,560
Without management fee waiver and
expense reimbursement:*
Net investment income (loss) per share .......... $0.027 $(0.036) $ (0.003) $ (0.035)
Ratios:
Expenses to average net assets ............... 0.76%+ 0.96% 0.83% 1.37%
Net investment income (loss) to average
net assets ................................. 0.39%+ (0.26)% (0.03)% (0.21)%
</TABLE>
<TABLE>
<CAPTION>
Cash Management Portfolio
-------------------------------------------------------------------
Six Months Year Ended December 31
Ended -----------------------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ............ $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income ........................... 0.027 0.040 0.030 0.035 0.056 0.075
Dividends paid .................................. (0.027) (0.040) (0.030) (0.035) (0.056) (0.075)
------ ------ ------ ------ ------ ------
Net asset value, end of period .................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return based on net asset value ........... 2.77% 4.03% 3.00% 3.53% 5.70% 7.79%
Ratios/Supplemental Data:
Expenses to average net assets .................. -- -- -- -- -- --
Net investment income to average net assets ..... 5.59%+ 3.98% 2.96% 3.50% 5.49% 7.53%
Net assets, end of period (000's omitted) ....... $4,003 $3,230 $3,102 $4,230 $5,849 $3,994
Without management fee waiver and
expense reimbursement:*
Net investment income per share ................. $0.022 $0.025 $ 0.019 $0.025 $ 0.048 $0.045
Ratios:
Expenses to average net assets ............... 1.08%+ 1.48% 1.07% 0.97% 0.83% 2.97%
Net investment income to average net assets .. 4.51%+ 2.50% 1.89% 2.53% 4.66% 4.56%
</TABLE>
- ----------
* The Manager, at its discretion, waived management fees and/or reimbursed
expenses for certain periods presented.
+ Annualized.
-- P-37 --
<PAGE>
Financial Highlights (unaudited) (continued)
<TABLE>
<CAPTION>
Communications and
Common Stock Portfolio Information Portfolio
--------------------------------------------------------- -------------------------
Six Months Year Ended December 31 Six Months 10/11/94*
Ended ---------------------------------------------- Ended to
6/30/95 1994 1993 1992 1991 1990 6/30/95 12/31/94
---------- ------- ------- ------- ------- ------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ......... $13.780 $14.980 $15.600 $14.740 $11.580 $12.260 $10.440 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss) ................. 0.178 0.365 0.392 0.346 0.362 0.356 (0.052) (0.016)
Net realized and unrealized gain (loss)
on investments ............................. 1.742 (0.356) 1.479 1.445 3.459 (0.743) 4.302 0.456
------- ------- ------- ------- ------- ------- ------- -------
Increase (decrease) from investment
operations ................................. 1.920 0.009 1.871 1.791 3.821 (0.387) 4.250 0.440
Dividends paid ............................... -- (0.385) (0.394) (0.369) (0.355) (0.263) -- --
Distributions from net gain realized ......... -- (0.824) (2.097) (0.562) (0.306) (0.030) -- --
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value ... 1.920 (1.200) (0.620) 0.860 3.160 (0.680) 4.250 0.440
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period ............... $15.700 $13.780 $14.980 $15.600 $14.740 $11.580 $14.690 $10.440
======= ======= ======= ======= ======= ======= ======= =======
Total return based on net asset value ........ 13.93% 0.04% 11.94% 12.14% 33.16% (3.15)% 40.71% 4.40%
Ratios/Supplemental Data:
Expenses to average net assets ............... 0.57%+ 0.60% 0.55% 0.56% 0.60% 0.88% 0.95%+ 0.95%+
Net investment income (loss) to
average net assets ......................... 2.43%+ 2.45% 2.10% 2.21% 2.63% 3.01% (0.92)%+ (0.95)%+
Portfolio turnover ........................... 39.34% 15.29% 10.70% 12.57% 27.67% 13.78% 6.03% --
Net assets, end of period (000's omitted) .... $23,422 $20,168 $21,861 $24,987 $26,103 $18,030 $12,171 $495
Without management fee waiver and
expense reimbursement:**
Net investment income (loss) per share ....... $0.361 $0.350 $(0.088) $(0.436)
Ratios:
Expense to average net assets .............. 0.62% 0.71% 1.58%+ 13.96%+
Net investment income (loss) to
average net assets ....................... 2.43% 2.52% (1.55)%+ (13.96)%+
</TABLE>
<TABLE>
<CAPTION>
Fixed Income Securities Portfolio Frontier Portfolio
--------------------------------------------------------- -------------------------
Six Months Year Ended December 31 Six Months 10/11/94*
Ended ---------------------------------------------- Ended to
6/30/95 1994 1993 1992 1991 1990 6/30/95 12/31/94
---------- ------- ------- ------- ------- ------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ......... $9.270 $10.110 $10.660 $10.990 $10.310 $10.220 $10.580 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss) ................. 0.309 0.499 0.713 0.706 0.798 0.680 (0.034) (0.012)
Net realized and unrealized gain (loss)
on investments ............................. 0.671 (0.841) 0.142 (0.092) 0.699 (0.054) 1.714 0.592
------- ------- ------- ------- ------- ------- ------- -------
Increase (decrease) from investment
operations ................................. 0.980 (0.342) 0.855 0.614 1.497 0.626 1.680 0.580
Dividends paid ............................... -- (0.498) (0.711) (0.772) (0.817) (0.536) -- --
Distributions from net gain realized ......... -- -- (0.694) (0.172) -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value ... 0.980 (0.840) (0.550) (0.330) 0.680 0.090 1.680 0.580
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period ............... $10.250 $9.270 $10.110 $10.660 $10.990 $10.310 $12.260 $10.580
======= ======= ======= ======= ======= ======= ======= =======
Total return based on net asset value ........ 10.57% (3.39)% 7.98% 5.60% 14.58% 6.14% 15.88% 5.80%
Ratios/Supplemental Data:
Expenses to average net assets ............... 0.60%+ 0.60% 0.74% 1.00% 0.60% 1.73% 0.95%+ 0.95%+
Net investment income (loss) to
average net assets ......................... 6.41%+ 5.12% 5.41% 6.22% 7.30% 6.59% (0.67)%+ (0.70)%+
Portfolio turnover ........................... 95.59% 237.23% 33.21% 23.40% 6.34% 6.62% 38.74% --
Net assets, end of period (000's omitted) .... $3,781 $3,606 $3,775 $4,750 $5,369 $4,600 $2,456 $169
Without management fee waiver and
expense reimbursement:**
Net investment income (loss) per share ....... $0.288 $0.430 $0.675 $0.712 $(0.206) $(1.319)
Ratios:
Expense to average net assets .............. 1.04%+ 1.31% 1.07% 1.42% 4.38%+ 40.47%+
Net investment income (loss) to
average net assets ....................... 5.97%+ 4.41% 5.08% 6.48% (4.10)%+ (40.22)%+
</TABLE>
- ----------
* Commencement of operations.
** The Manager, at its discretion, waived management fees and/or reimbursed
expenses for certain periods presented.
+ Annualized.
-- P-38 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Smaller
Global Portfolio Companies Portfolio
---------------------------------------- -----------------------------
Six Months Year ended 5/3/93* to Six Months 10/11/94* to
Ended 6/30/95 12/31/94 12/31/93 Ended 6/30/95 12/31/94
------------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ......... $11.340 $11.370 $10.000 $10.310 $10.000
------- ------- ------- ------- -------
Net investment income ........................ 0.083 0.131 0.021 0.075 0.058
Net realized and unrealized gain (loss) on
investments ................................ (0.149) (0.306) 1.518 0.262 0.266
Net realized and unrealized gain (loss) from
foreign currency transactions .............. 0.236 0.325 (0.099) 0.193 0.029
------- ------- ------- ------- -------
Increase from investment operations .......... 0.170 0.150 1.440 0.530 0.353
Dividends paid ............................... -- (0.064) (0.053) -- (0.043)
Distributions from net gain realized ......... -- (0.116) (0.017) -- --
------- ------- ------- ------- -------
Net increase (decrease) in net asset value ... 0.170 (0.030) 1.370 0.530 0.310
------- ------- ------- ------- -------
Net asset value, end of period ............... $11.510 $11.340 $11.370 $10.840 $10.310
======= ======= ======= ======= =======
Total return based on net asset value ......... 1.50% 1.32% 14.40% 5.14% 3.53%
Ratios/Supplemental Data:
Expenses to average net assets ................ 1.27%+ 1.20% 1.20%+ 1.31%+ 1.20%+
Net investment income to average net assets ... 1.41%+ 1.17% 1.30%+ 1.61%+ 3.14%+
Portfolio turnover ............................ 31.72% 47.34% 2.82% 9.83% --
Net assets, end of period (000's omitted) .... $2,215 $1,776 $648 $1,295 $132
Without management fee waiver and
expense reimbursement:**
Net investment income (loss) per share ........ $(0.071) $(0.419) $(1.004) $(0.315) $(1.225)
Ratios:
Expenses to average net assets ............. 4.07%+ 6.12% 17.94%+ 9.67%+ 37.25%+
Net investment loss to average net assets .. (1.39)%+ (3.75)% (15.44)%+ (6.75)%+ (32.91)%+
</TABLE>
<TABLE>
<CAPTION>
High-Yield Bond
Portfolio Income Portfolio
--------------- -----------------------------------------------------------
5/1/95* Six Months Year Ended December 31
to Ended -----------------------------------------------
6/30/95 6/30/95 1994 1993 1992 1991 1990
--------------- --------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ......... $10.000 $9.970 $11.380 $11.390 $11.250 $9.500 $10.780
------- ------ ------- ------- ------- ------ -------
Net investment income ........................ 0.022 0.295 0.689 0.828 0.862 0.896 0.829
Net realized and unrealized gain (loss)
on investments ............................. 0.008 0.765 (1.369) 0.576 0.896 2.024 (1.487)
------- ------ ------- ------- ------- ------ -------
Increase (decrease) from investment operations 0.030 1.060 (0.680) 1.404 1.758 2.920 (0.658)
Dividends paid ............................... -- -- (0.730) (0.828) (0.987) (0.904) (0.622)
Distributions from net gain realized ......... -- -- -- (0.586) (0.631) (0.266) --
------- ------ ------- ------- ------- ------ -------
Net increase (decrease) in net asset value ... 0.030 1.060 (1.410) (0.010) 0.140 1.750 (1.280)
------- ------ ------- ------- ------- ------ -------
Net asset value, end of period ............... $10.030 $11.030 $9.970 $11.380 $11.390 $11.250 $ 9.500
======= ====== ======= ======= ======= ====== =======
Total return based on net asset value ......... 0.30% 10.63% (5.96)% 12.37% 15.72% 30.89% (6.10)%
Ratios/Supplemental Data:
Expenses to average net assets ................ 0.70%+ 0.60%+ 0.60% 0.64% 0.68% 0.60% 1.40%
Net investment income to average net assets ... 2.80%+ 5.70%+ 6.34% 6.40% 7.53% 8.05% 8.19%
Portfolio turnover ............................ -- 24.71% 29.76% 38.38% 39.46% 43.67% 21.64%
Net assets, end of year (000's omitted) ....... $277 $11,469 $10,050 $11,220 $11,363 $11,509 $7,419
Without management fee waiver and
expense reimbursement:**
Net investment income per share ............... $(0.420) $0.293 $0.670 $0.826 $0.867
Ratios:
Expenses to average net assets ............. 40.70%+ 0.64%+ 0.77% 0.65% 0.93%
Net investment income to average net assets. (37.20)%+ 5.66%+ 6.17% 6.39% 7.72%
</TABLE>
- ----------
* Commencement of operations.
** The Manager and/or Subadviser, at their discretion, waived management fees
and/or reimbursed expenses for certain periods presented.
+ Annualized.
See notes to financial statements.
-- P-39 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
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
Chairman and Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
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
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
- --------------------------------------------------------------------------------
Executive Officers
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Ronald T. Schroeder
President
Leonard J. Lovito
Vice President
Loris D. Muzzatti
Vice President
Charles C. Smith, Jr.
Vice President
Lawrence P. Vogel
Vice President
Paul H. Wick
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- --------------------------------------------------------------------------------
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, New York 10017
Subadviser
Seligman Henderson Co.
100 Park Avenue
New York, New York 10017
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, New York 10017
Custodians
Investors Fiduciary Trust Company
Morgan Stanley Trust Company
General Counsel
Sullivan & Cromwell
Independent Auditors
Ernst & Young LLP
-- P-40 --
