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M I D - Y E A R R E P O R T
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SELIGMAN
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PORTFOLIOS,
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INC.
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[LOGO]
June 30, 1996
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<PAGE>
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SELIGMAN
PORTFOLIOS,
INC.
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-------------
-------------
July 26, 1996
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios,
Inc., is pleased to provide the enclosed unaudited financial statements and
accompanying information for Seligman Portfolios, Inc., the underlying
investment vehicle for your policy, for the six months ended June 30, 1996.
In the first half of 1996, the Federal Reserve Board's continuing efforts
to achieve a "soft landing" -- a healthy moderation of economic growth that does
not slip into recession -- appeared to have come to fruition. Economic data for
the second quarter of 1996 indicated continued growth in output, employment, and
incomes. More than half the early corporate earnings reports reflected the
positive effects of the strong economy, and earnings estimates rose to higher
levels. Inflation remained low and, more important, commodity price indices
declined from their recent eight-year highs, which suggested that future
inflationary pressures were in check. Overall, the economy seemed quite healthy
at the end of the second quarter.
In the fixed-income markets, higher corporate profits and uncertainty over
the future direction of interest rates created much confusion. The benchmark
30-year Treasury bond yield fluctuated widely, reacting to the shifting
perceptions of economic growth and inflationary pressures. It ended the month of
June at 6.87%, up from 5.95% at the beginning of the year. Additionally, the
yield on the benchmark three-month Treasury bill began the year at 5.08% and
increased to 5.16% by June 30.
While fundamentals remained strong in the US, a mid-July sell-off in the
US equity markets was triggered by disappointing earnings reports from several
important technology and health care companies. This led to an overall negative
assessment that other corporate profits would fall short of expectations and
economic growth would slow, causing future earnings disappointments. A broad
decline in equity prices ensued, which was aggravated by uncertainty over the
future direction of interest rates. This culminated on July 15, when the price
of five out of six companies on the New York Stock Exchange declined. Although
the downturn affected Seligman Portfolios, Inc., some of the lost ground was
regained by the end of the month. While viewpoints differ over the likely
direction of financial markets and the economy over the next year, we believe
that the longer-term outlook for the US economy and the equity markets remains
sound.
For international markets, the first half of the year was characterized by
higher stock prices, volatile bond markets, a strong US Dollar, and subdued
inflation. In Europe, stagnant economic growth forced central banks to lower
interest rates. As a result, European markets were among the best performers in
the world, though weaker currencies reduced much of the gains. In Japan, massive
fiscal expansion, easy monetary policy, and a weaker Yen boosted economic growth
to a 23-year record. Japan's stock market responded by rising almost 8%, but
here too, most of the gains were eroded by the weaker Yen. Looking ahead, a
combination of economic recovery and low inflation should support rising
earnings and higher stock prices in the next six months.
We thank you for your continued confidence in Seligman Portfolios, Inc.,
and look forward to serving your investment needs in 1996 and the years ahead.
Respectfully,
/s/ William C. Morris
William C. Morris
Chairman
J. & W. Seligman & Co. Incorporated
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Largest Portfolio Changes* (unaudited)
- --------------------------------------------------------------------------------
During the Six Months Ended June 30, 1996
Shares or
Additions Principal Amount
--------------------- ---------------------
Holdings
Increase 6/30/96
-------- --------
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Berg Electronics ............................ 7,000shs. 7,000shs.
Garden Botanika ............................. 7,500 7,500
International Game Technology ............... 7,300 7,300
Pfizer ...................................... 2,800 2,800
St. Jude Medical ............................ 3,800 3,800
Southwest Airlines .......................... 3,400 3,400
Sun International Hotels .................... 4,500 4,500
TCSI ........................................ 5,000 7,500(1)
360(degree)Communications ................... 4,800 4,800
Western Wireless (Class A) .................. 8,450 8,450
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
AMP ......................................... 4,800 4,800
Echlin ...................................... 8,000 11,300
First Brands ................................ 12,000 12,000
Fleet Financial Group ....................... 6,000 6,000
Frontier .................................... 7,800 7,800
General Signal .............................. 7,400 7,400
Lockheed Martin ............................. 4,100 4,100
Mead ........................................ 3,500 3,500
United Healthcare ........................... 4,500 4,500
Vishay Intertechnology ...................... 10,750 11,000(3)
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Common Stocks
America Online .............................. 15,000 15,000
Cognex ...................................... 35,000 35,000
Hadco ....................................... 27,000 27,000
Hummingbird Communications .................. 20,000 20,000
International Rectifier ..................... 40,000 40,000
K-III Communications ........................ 70,000 70,000
Lexmark International Group ................. 50,000 50,000
Oak Technology .............................. 10,000 20,000(5)
Sun Microsystems ............................ 13,000 13,000
Xerox ....................................... 7,000 21,000(6)
- --------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
U.S. Government Securities
U.S. Treasury Bonds 8 3/4%,
5/15/2020 ................................. $600,000 $600,000
U.S. Treasury Notes 7 1/4%, 8/15/2004 ........ 500,000 500,000
U.S. Government Agencies
Federal National Mortgage Association
7%, 5/1/2026 .............................. 507,867 507,867
Corporate Bonds
Continental Cablevision 8.30%,
5/15/2006 ................................. 200,000 200,000
Asset-Backed Securities
Advanta 7.44%, 8/25/2018 .................... 200,000 200,000
- --------------------------------------------------------------------------------
Shares or
Reductions Principal Amount
--------------------- --------------------
Holdings
Decrease 6/30/96
-------- --------
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Altera ...................................... 2,200shs. --
Arbor Software .............................. 2,000 --
Arrow International ......................... 3,000 --
BMC Software ................................ 1,500 --
Chris-Craft Industries ...................... 3,600 --
HFS ......................................... 2,400 2,400 shs.(2)
Mirage Resorts .............................. 2,300 2,900
Sequent Computer Systems .................... 6,000 --
Sunrise Medical ............................. 4,000 --
Tambrands ................................... 1,600 --
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
Aetna Life & Casualty ....................... 3,200 --
Air Products and Chemicals .................. 6,200 --
Cray Research ............................... 11,000 --
General Electric ............................ 3,300 4,600
Gillette .................................... 5,200 3,000
Hasbro ...................................... 9,400 --
Knight-Ridder Newspapers .................... 5,600 --
PepsiCo ..................................... 5,800 12,600(4)
Royal Dutch Petroleum ....................... 1,500 2,200
State Street Boston ......................... 6,300 --
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Common Stocks
Altera ...................................... 17,000 --
Altron ...................................... 37,500(7) --
Applied Materials ........................... 17,000 --
Compaq Computers ............................ 17,000 --
Cypress Semiconductor ....................... 52,000 --
Electronics for Imaging ..................... 3,000 7,000
KLA Instruments ............................. 25,000 --
LSI Logic ................................... 22,000 --
Tekelec ..................................... 50,000 --
VLSI Technology ............................. 40,000 --
- --------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
U.S. Government Securities
U.S. Treasury Bonds 8 7/8%,
2/15/2019 ................................. $1,200,000 --
Corporate Bonds
Golden West Financial
6.70%, 7/1/2002 ........................... 150,000 --
News America Holdings
8 1/4%, 8/10/2018 .......................... 150,000 --
- --------------------------------------------------------------------------------
- ----------
See footnotes on page P-3.
-- P-1 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Largest Portfolio Changes* (unaudited) (continued)
- --------------------------------------------------------------------------------
During the Six Months Ended June 30, 1996
Additions Shares
--------------------- ---------------------
Holdings
Increase 6/30/96
-------- --------
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
AMRE ........................................ 13,100 13,100
Avondale Industries ......................... 13,500 13,500
Cardiac Pathways ............................ 17,850 17,850
Control Data Systems ........................ 10,500 10,500
DST Systems ................................. 6,800 11,200
General Nutrition ........................... 11,500 11,500
R.P. Scherer ................................ 7,800 7,800
Sunquest Information Systems ................ 21,000 21,000
Walsh International ......................... 20,000 20,000
Watson Pharmaceuticals ...................... 10,600 10,600
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Common Stocks
Accor ....................................... 522 522
CITIC Pacific ............................... 15,000 15,000
DBS Land .................................... 15,000 15,000
DSM ......................................... 667 667
Guangdong Investments ....................... 95,000 95,000
HSBC Holdings ............................... 3,600 3,600
Istituto Nazionale
delle Assicurazioni ....................... 56,453 56,453
Sandoz ...................................... 74 74
Sun Hung Kai Properties ..................... 6,000 6,000
Taiwan Fund ................................. 5,000 5,000
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO
Common Stocks
AmeriSource Health (Class A) ................ 3,300 3,300
Asahi Diamond Industries .................... 8,000 10,090(8)
Assystem .................................... 1,000 1,000
Imnet Systems ............................... 3,300 3,300
Moebel Walther .............................. 3,800 3,800
Samas Groep ................................. 2,800 2,800
Southern Pacific Funding .................... 11,500 11,500
Tamro ....................................... 25,000 25,000
Tsudakoma ................................... 16,000 20,000
Waters ...................................... 5,000 5,000
- --------------------------------------------------------------------------------
Shares or
Reductions Principal Amount
--------------------- --------------------
Holdings
Decrease 6/30/96
-------- --------
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
Aspect Telecommunications ................... 4,880 --
The Carbide/Graphite Group .................. 9,300 --
Central Parking ............................. 4,000 --
Clintrials Research ......................... 3,730 --
Cypress Semiconductor ....................... 10,900 --
Eagle USA Airfreight ........................ 4,000 --
Falcon Drilling ............................. 7,200 --
Lam Research ................................ 3,960 --
SITEL ....................................... 7,200 --
ThermoLase .................................. 4,500 --
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Common Stocks
Farnell Electronics ......................... 4,300 --
Gadjah Tunggal .............................. 76,000 --
Hong Kong Telecommunications ................ 29,400 --
Jurong Shipyard ............................. 9,000 --
Karstadt .................................... 101 --
LaFarge Coppee .............................. 855 --
Roche Holdings .............................. 7 --
Siam Cement ................................. 700 --
Tele Danmark (Series B) ..................... 1,004 --
Unilever .................................... 2,900 --
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO
Common Stocks
Amisys Managed Care Systems ................. 5,000 --
Applied Extrusion Technology ................ 3,500 --
Central Parking ............................. 1,000 --
COREstaff ................................... 2,500 --
Eagle USA Airfreight ........................ 3,000 --
Learning Tree International ................. 2,500 --
Norland Medical Systems ..................... 2,000 --
Parexel International ....................... 1,000 --
Protein Design Labs ......................... 1,840 --
SITEL ....................................... 500 2,000(9)
- --------------------------------------------------------------------------------
- ----------
See footnotes on page P-3.
-- P-2 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
During the Six Months Ended June 30, 1996
Shares or
Additions Principal Amount
--------------------- ---------------------
Holdings
Increase 6/30/96
-------- --------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Corporate Bonds
Aztar 13 3/4%, 10/1/2004 ..................... $100,000 $100,000
Cablevision Systems 10 1/2%,
5/15/2006 ................................ 200,000 200,000
Charter Communications 11 1/4%,
3/15/2006 ................................. 150,000 150,000
IMO Industries 11 3/4%, 5/1/2006 ............. 200,000 200,000
Jitney-Jungle Stores 12%,
3/1/2006 .................................. 200,000 200,000
Midland Cogeneration Venture
11 3/4%, due 7/23/2005 ..................... 150,000 250,000
Pricecellular Wire 0% (12 1/4%),
10/1/2003 ................................. 200,000 200,000
Trump Hotels & Casino Resorts
Funding 15 1/2%, 6/15/2005 ................. 100,000 150,000
Unisys 12%, 4/15/2003 ....................... 150,000 150,000
S.D. Warren 12%, 12/15/2004 ................. 150,000 150,000
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Common Stocks
Central and South West ...................... 1,900 shs. 1,900 shs.
Convertible Preferred Stocks
Browning-Ferris Industries 7 1/4% ............ 7,500 7,500
FSA 7 5/8% ................................... 7,500 7,500
Kmart Financing 7 3/4% ....................... 2,000 2,000
Subordinated Convertible Bonds
General Signal 5 3/4%, 6/1/2002 .............. $200,000 $200,000
Molten Metal Technology
5 1/2%, 5/1/2006 ........................... 200,000 200,000
Xilinx 5 1/4%, 11/1/2002 ..................... 250,000 250,000
- --------------------------------------------------------------------------------
Shares or
Reductions Principal Amount
--------------------- --------------------
Holdings
Decrease 6/30/96
-------- --------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Corporate Bonds
Arcadian Partners 10 3/4%, 5/1/2005 $100,000 --
Casino Magic Finance 11 1/2%,
10/15/2001 ................................ 100,000 --
Grand Casinos 10 1/8%, 12/1/2003 ............. 50,000 --
Olympic Financial 13%, 5/1/2000 ............. 75,000 --
People's Choice Television
0% (13 1/8%), 6/1/2004 ..................... 100,000 --
Regency Health Services 9 7/8%,
10/15/2002 ................................ 100,000 --
Thrifty Payless 12 1/4%, 4/15/2004 ........... 50,000 --
TransTexas Gas 11 1/2%,
6/15/2002 ................................. 100,000 --
Trump Plaza Funding 10 7/8%,
6/15/2001 ................................. 50,000 --
Trump Taj Mahal 11.35%,
11/15/1999 ................................ 100,000 --
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Subordinated Convertible Bonds
Kelley Oil & Gas 8 1/2%, 4/1/2000 ............ 285,000 --
Time Warner 8 3/4%, 1/10/2015 ................ 76,750 --
Unifi 6%, 3/15/2002 ......................... 300,000 --
- --------------------------------------------------------------------------------
* Largest portfolio changes from the previous year end to the current midyear
are based on cost of purchases and proceeds from sales of securities.
(1) Includes 2,500 shares received as a result of a 3-for-2 stock split.
(2) Includes 2,400 shares received as a result of a 2-for-1 stock split.
(3) Includes 250 shares received as a result of a 5% stock dividend.
(4) Includes 6,300 shares received as a result of a 2-for-1 stock split.
(5) Includes 10,000 shares received as a result of a 2-for-1 stock split.
(6) Includes 14,000 shares received as a result of a 3-for-1 stock split.
(7) Includes 12,500 shares received as a result of a 3-for-2 stock split.
(8) Includes 90 shares received as a result of a 3% stock dividend.
(9) Includes 1,000 shares received as a result of a 2-for-1 stock split.
-- P-3 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited)
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 86.3%
AEROSPACE -- 1.2%
Litton Industries* ............................. 3,400 $ 147,900
------------
AUTOMOTIVE AND RELATED -- 2.8%
Cooper Tire & Rubber ........................... 5,000 111,250
Harley-Davidson ................................ 5,800 238,525
------------
349,775
------------
BASIC MATERIALS -- 4.8%
Minerals Technologies .......................... 5,000 171,250
Nucor .......................................... 2,100 106,312
Olin ........................................... 2,300 205,275
Schulman, A .................................... 4,687 114,246
------------
597,083
------------
BUSINESS SERVICES AND SUPPLIES -- 2.7%
HFS* ........................................... 2,400 168,000
Interpublic Group of Companies ................. 3,600 168,750
------------
336,750
------------
COMPUTER GOODS AND SERVICES -- 6.0%
Berg Electronics ............................... 7,000 166,250
Comshare ....................................... 7,000 215,250
Flserv* ........................................ 6,000 181,500
Intel .......................................... 2,400 176,250
------------
739,250
------------
CONSUMER GOODS AND SERVICES -- 7.0%
Estee Lauder* .................................. 2,500 105,625
Masco .......................................... 4,600 139,150
Newell ......................................... 5,800 177,625
Oakley* ........................................ 5,400 245,700
Tommy Hilfiger* ................................ 3,700 198,412
------------
866,512
------------
DRUGS AND HEALTH CARE -- 14.2%
Amgen* ......................................... 3,600 193,950
Biogen* ........................................ 1,700 92,969
Columbia/HCA Healthcare ........................ 2,900 154,787
Express Scripts (Class A)* ..................... 2,000 91,750
Flamel Technologies* ........................... 5,000 39,687
Guidant ........................................ 5,000 246,250
Humana* ........................................ 5,300 94,737
IDEC Pharmaceuticals* .......................... 1,500 34,688
InControl* ..................................... 6,000 69,000
Mid Atlantic Medical Services* ................. 7,400 105,450
Oxford Health Plans* ........................... 5,000 205,312
Pfizer ......................................... 2,800 199,850
Physio-Control International* .................. 6,200 108,888
St. Jude Medical* .............................. 3,800 126,825
------------
1,764,143
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-4 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
Shares Value
------ -----
FINANCIAL SERVICES -- 8.9%
Amerin* ........................................ 7,200 $ 191,700
Donaldson, Lufkin & Jenrette ................... 6,000 186,000
MBNA ........................................... 7,200 205,200
Progressive (Ohio) ............................. 3,700 171,125
Transatlantic Holdings ......................... 1,700 119,213
Travelers ...................................... 4,950 225,844
------------
1,099,082
------------
FOOD AND FOOD SERVICES -- 3.2%
Brinker International* ......................... 5,200 78,000
Hart Brewing ................................... 10,650 111,825
PepsiCo ........................................ 6,000 212,250
------------
402,075
------------
INDUSTRIAL GOODS AND SERVICES -- 1.5%
Illinois Tool Works ............................ 2,700 182,587
------------
LEISURE AND RELATED -- 11.5%
British Sky Broadcasting (ADSs) ................ 4,900 199,062
Circus Circus Enterprises* ..................... 3,700 151,700
Infinity Broadcasting* ......................... 5,550 166,500
International Game Technology .................. 7,300 123,188
Mattel ......................................... 7,812 223,618
Mirage Resorts* ................................ 2,900 156,600
Sun International Hotels* ...................... 4,500 218,250
Viacom (Class B) ............................... 4,600 178,825
------------
1,417,743
------------
RETAIL TRADE -- 5.4%
Garden Botanika* ............................... 7,500 163,125
Home Depot ..................................... 3,500 189,000
Nordstrom ...................................... 2,600 115,375
Office Depot* .................................. 4,800 97,800
OfficeMax* ..................................... 4,100 97,887
------------
663,187
------------
SOFTWARE -- 8.3%
Activision* .................................... 17,500 228,594
Checkfree* ..................................... 4,400 87,725
Edmark ......................................... 3,500 70,438
Microsoft* ..................................... 1,900 228,119
Objective Systems Integrators* ................. 1,900 69,350
Sterling Software* ............................. 3,300 254,100
Sybase* ........................................ 4,020 95,224
------------
1,033,550
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-5 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
TELECOMMUNICATIONS -- 8.0%
Century Telephone Enterprises .................. 4,100 shs. $ 130,688
MRV Communications ............................. 2,350 98,994
TCSI* .......................................... 7,500 180,000
360(degree)Communications* ..................... 4,800 115,200
Western Wireless (Class A) ..................... 8,450 182,203
WorldCom* ...................................... 5,100 282,094
-----------
989,179
-----------
TRANSPORTATION -- 0.8%
Southwest Airlines ............................. 3,400 99,025
-----------
Total Common Stocks (Cost $8,506,528) .......... 10,687,841
REPURCHASE AGREEMENTS -- 12.7% (Cost $1,575,000)
HSBC Securities, Inc. 4 1/2%, dated 6/26/1996,
maturing 7/3/1996 collateralized by:
$1,475,000 U.S. Treasury Notes 8 3/4%, 11/15/2008,
with a fair market value of $1,634,003 ..... $ 1,575,000 1,575,000
-----------
Total Investments-- 99.0% (Cost $10,081,528) ... 12,262,841
Other Assets Less Liabilities-- 1.0% ........... 118,741
-----------
Net Assets-- 100.0% ............................ $12,381,582
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-6 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO
Annualized
Yield on
Purchase Principal
Date Amount Value
-------- --------- -----
COMMERCIAL PAPER -- 51.8%
American Express Credit Corp., 7/10/1996 .... 5.35% $ 400,000 $ 399,472
American General Finance Corp., 7/25/1996 ... 5.35 450,000 448,419
Associates Corp. of North America, 7/18/1996 5.36 450,000 448,876
BellSouth Telecommunications Corp., 7/30/1996 5.32 450,000 448,097
Beneficial Corp., 8/30/1996 ................. 5.33 475,000 470,836
CoreStates Financial Corp., 7/1/1996 ........ 5.29 400,000 400,000
Ford Motor Credit Corp., 8/16/1996 .......... 5.34 360,000 357,576
General Electric Capital Corp., 8/14/1996 ... 5.34 450,000 447,101
J.P. Morgan & Co., 7/11/1996 ................ 5.35 400,000 399,413
John Deere Capital Corp., 8/15/1996 ......... 5.38 450,000 447,019
Norwest Financial, 8/30/1996 ................ 5.33 475,000 470,836
----------
Total Commercial Paper (Cost $4,737,645) .... 4,737,645
----------
U.S. GOVERNMENT SECURITIES -- 40.0%
U.S. Treasury Bills, 8/22/1996 .............. 5.17 1,600,000 1,588,421
U.S. Treasury Bills, 9/19/1996 .............. 5.23 2,100,000 2,076,340
----------
Total U.S. Government Securities (Cost $3,664,761) 3,664,761
----------
FIXED TIME DEPOSIT -- 4.9% (cost $450,000)
National Westminster Bank, Nassau, 7/1/1996 . 5.06 450,000 450,000
----------
BANK NOTES -- 3.3% (cost $300,020)
NBD Bank, Detroit, 9/3/1996 ................. 5.34 300,000 300,020
----------
Total Investments-- 100.0% (Cost $9,152,426) 9,152,426
Other Assets Less Liabilities ............... (2,883)
----------
Net Assets-- 100.0% ......................... $9,149,543
==========
SELIGMAN COMMON STOCK PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 90.7%
ADVERTISING -- 1.2%
Omnicom Group .................................. 8,400 $ 390,600
------------
AEROSPACE/DEFENSE -- 4.3%
Avondale Industries* ........................... 8,000 143,500
General Dynamics ............................... 3,000 186,000
General Motors (Class H) ....................... 4,400 264,550
Lockheed Martin ................................ 4,100 344,400
Raytheon ....................................... 3,500 180,688
United Technologies ............................ 2,800 322,000
------------
1,441,138
------------
APPAREL AND TEXTILES -- 1.5%
Liz Claiborne .................................. 7,000 242,375
Unifi .......................................... 9,700 272,812
------------
515,187
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-7 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
AUTOMOTIVE AND RELATED -- 3.1%
Echlin ......................................... 11,300 $ 427,988
Genuine Parts .................................. 3,800 173,850
Harley-Davidson ................................ 5,200 213,850
The Pep Boys ................................... 6,200 210,800
------------
1,026,488
------------
CAPITAL GOODS-- 0.6%
Ingersoll-Rand ................................. 4,500 196,875
------------
CHEMICALS -- 1.6%
Dow Chemical ................................... 2,400 182,400
Morton International ........................... 4,200 156,450
Olin ........................................... 2,200 196,350
------------
535,200
------------
COMPUTER HARDWARE/PERIPHERALS -- 1.5%
Compaq Computer ................................ 4,300 211,775
Dell Computer .................................. 5,500 279,469
------------
491,244
------------
COMPUTER SOFTWARE-- 0.6%
Synopsys* ...................................... 5,100 203,363
------------
CONSTRUCTION -- 0.7%
Sherwin-Williams ............................... 4,800 223,200
------------
CONSUMER GOODS AND SERVICES -- 9.5%
Coca-Cola ...................................... 5,600 273,700
Colgate-Palmolive .............................. 5,200 440,700
Eastman Kodak .................................. 4,000 311,000
First Brands ................................... 12,000 324,000
Gillette ....................................... 3,000 187,125
International Flavors & Fragrances ............. 6,700 319,087
RJR Nabisco Holdings ........................... 4,400 136,400
PepsiCo ........................................ 12,600 445,725
Procter & Gamble ............................... 5,300 480,312
Rubbermaid ..................................... 8,900 242,525
------------
3,160,574
------------
DRUGS AND HEALTH CARE -- 7.5%
Abbott Laboratories ............................ 6,200 269,700
American Home Products ......................... 3,600 216,450
Bard (C.R.) .................................... 6,200 210,800
Baxter International ........................... 3,600 170,100
Biomet ......................................... 12,000 171,000
Bristol-Myers Squibb ........................... 2,000 180,000
Guidant ........................................ 3,300 162,525
Mallinckrodt Group ............................. 4,500 174,937
Medtronic ...................................... 2,400 134,400
Nellcor Puritan Bennett* ....................... 3,200 155,600
Schering-Plough ................................ 6,600 414,150
United Healthcare .............................. 4,500 227,250
------------
2,486,912
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-8 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
ELECTRIC AND GAS UTILITIES -- 1.0%
FPL Group ...................................... 7,200 $ 331,200
------------
ELECTRONICS -- 2.2%
Motorola ....................................... 5,000 314,375
Vishay Intertechnology* ........................ 11,000 259,875
Xilinx ......................................... 4,800 152,100
------------
726,350
------------
ENERGY -- 11.1%
Anadarko Petroleum ............................. 3,500 203,000
Atlantic Richfield ............................. 2,500 296,250
Baker Hughes ................................... 7,000 230,125
Enron .......................................... 7,500 306,562
Mobil .......................................... 2,800 313,950
PanEnergy ...................................... 10,800 355,050
Royal Dutch Petroleum .......................... 2,200 338,250
Schlumberger ................................... 5,000 421,250
Sonat .......................................... 9,200 414,000
Texaco ......................................... 5,300 444,538
Union Pacific Resources ........................ 13,800 369,150
------------
3,692,125
------------
ENVIRONMENTAL SERVICES -- 0.5%
Browning-Ferris Industries ..................... 6,000 174,000
------------
FINANCE AND INSURANCE -- 10.0%
American International Group ................... 4,800 473,400
BankAmerica .................................... 2,200 166,650
Bank of New York ............................... 4,800 246,000
Federal National Mortgage Association .......... 10,400 348,400
Fleet Financial Group .......................... 6,000 261,000
General Re ..................................... 3,500 532,875
Household International ........................ 2,000 152,000
Mellon Bank .................................... 3,100 176,700
NationsBank .................................... 5,814 480,382
PNC Bank ....................................... 5,900 175,525
St. Paul Companies ............................. 3,000 160,500
Travelers ...................................... 3,750 171,094
------------
3,344,526
------------
FOOD -- 4.8%
Campbell Soup .................................. 2,800 197,400
ConAgra ........................................ 5,250 238,219
CPC International .............................. 5,000 360,000
General Mills .................................. 4,900 267,050
Sara Lee ....................................... 11,400 369,075
Sysco .......................................... 5,000 171,250
------------
1,602,994
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-9 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
INDUSTRIAL EQUIPMENT -- 3.3%
AMP ............................................ 4,800 $ 192,600
Emerson Electric ............................... 2,600 234,975
General Electric ............................... 4,600 397,900
General Signal ................................. 7,400 280,275
------------
1,105,750
------------
LEISURE AND ENTERTAINMENT -- 0.5%
Disney, Walt ................................... 2,900 182,338
------------
METALS AND MINING -- 0.5%
Reynolds Metals ................................ 3,000 156,375
------------
OFFICE EQUIPMENT -- 0.6%
Pitney Bowes ................................... 4,100 195,775
------------
PAPER AND PACKAGING -- 1.8%
International Paper ............................ 4,300 158,563
Kimberly-Clark ................................. 3,300 254,925
Mead ........................................... 3,500 181,562
------------
595,050
------------
PRINTING AND PUBLISHING -- 1.3%
Donnelley (R.R.) ............................... 3,800 132,525
Reader's Digest (Class A) ...................... 3,200 136,000
Tribune ........................................ 2,400 174,300
------------
442,825
------------
RESTAURANTS -- 0.9%
McDonald's ..................................... 3,000 140,250
Wendy's International .......................... 8,600 160,175
------------
300,425
------------
RETAIL TRADE -- 6.7%
American Stores ................................ 8,200 338,250
Dillard Department Stores ...................... 5,000 182,500
Kmart .......................................... 5,800 71,775
Limited ........................................ 3,862 83,033
May Department Stores .......................... 6,000 262,500
Nordstrom ...................................... 6,700 297,312
Penney (J. C.) ................................. 4,000 210,000
Sears, Roebuck ................................. 4,800 233,400
Tandy .......................................... 3,500 165,812
Wal-Mart ....................................... 8,100 205,537
Woolworth ...................................... 8,500 191,250
------------
2,241,369
------------
STEEL -- 0.3%
Nucor .......................................... 2,200 111,375
------------
TECHNOLOGY -- 1.5%
Hewlett-Packard ................................ 1,960 195,265
Intel .......................................... 2,800 205,625
Teradyne ....................................... 6,400 110,400
------------
511,290
------------
- ----------
See notes to financial statements.
-- P-10 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
TELECOMMUNICATIONS -- 3.4%
ALLTEL ......................................... 11,000 shs. $ 338,250
American Telephone & Telegraph ................. 2,500 155,000
Frontier ....................................... 7,800 238,875
GTE ............................................ 3,900 174,525
Loral Space & Communications* .................. 14,000 190,750
Teleport Communications ........................ 1,500 28,500
-----------
1,125,900
-----------
TELEPHONE UTILITIES -- 0.9%
NYNEX .......................................... 3,500 166,250
SBC Communications ............................. 2,900 142,825
-----------
309,075
-----------
TOBACCO -- 3.1%
Philip Morris .................................. 4,800 499,200
Schweitzer-Mauduit International ............... 7,400 208,125
UST Inc. ....................................... 9,900 339,075
-----------
1,046,400
-----------
TRANSPORTATION -- 0.9%
Caliber System ................................. 4,850 164,900
Conrail ........................................ 1,800 119,475
-----------
284,375
-----------
MISCELLANEOUS/DIVERSIFIED -- 3.3%
Corning (Delaware) ............................. 9,200 353,050
Dover .......................................... 2,800 129,150
Minnesota Mining & Manufacturing ............... 4,600 317,400
Tenneco ........................................ 5,900 301,638
-----------
1,101,238
-----------
Total Common Stocks (Cost $22,767,124)......... 30,251,536
-----------
SUBORDINATED CONVERTIBLE BONDS -- 1.0%
EMC 4 1/4%, 1/1/2001 $ 125,000 134,688
MascoTech 4 1/2%, 12/15/2003 250,000 198,750
-----------
Total Subordinated Convertible Bonds (Cost $324,732) 333,438
-----------
REPURCHASE AGREEMENTS -- 10.8% (Cost $3,600,000)
HSBC Securities, Inc.4 1/2%, dated 6/26/1996,
maturing 7/3/1996 collateralized by:
$3,345,000 U.S. Treasury Notes 8 3/4%, 11/15/2008,
with a fair market value of $3,705,587 ..... 3,600,000 3,600,000
-----------
Total Investments-- 102.5% (Cost $26,691,856) .. 34,184,974
Other Assets Less Liabilities-- (2.5)% ......... (834,916)
-----------
Net Assets-- 100.0% ............................ $33,350,058
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-11 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 75.4%
COMMUNICATIONS INFRASTRUCTURE -- 14.3%
Bay Networks* .................................. 20,000 $ 515,000
Cabletron Systems .............................. 9,000 617,625
CIDCO* ......................................... 20,000 705,000
Cisco Systems* ................................. 20,000 1,133,750
ECI Telecommunications ......................... 30,000 695,625
Glenayre Technologies* ......................... 20,000 998,750
Madge Networks* ................................ 15,000 221,250
Network General ................................ 36,000 769,500
StrataCom* ..................................... 5,000 282,188
3Com* .......................................... 25,000 1,142,187
------------
7,080,875
------------
COMPUTER HARDWARE/PERIPHERALS -- 16.5%
Adaptec* ....................................... 16,000 757,000
C-Cube Microsystems* ........................... 10,000 330,625
Dell Computer .................................. 17,000 863,813
Electronics for Imaging* ....................... 7,000 486,062
EMC* ........................................... 55,000 1,024,375
Hewlett-Packard ................................ 2,000 199,250
Komag* ......................................... 22,000 577,500
Lexmark International Group .................... 50,000 1,006,250
Seagate Technology* ............................ 13,000 585,000
Sun Microsystems* .............................. 13,000 765,375
Tektronix ...................................... 10,000 447,500
Xerox .......................................... 21,000 1,123,500
------------
8,166,250
------------
COMPUTER SOFTWARE -- 18.0%
Aspect Development* ............................ 25,000 634,375
Cadence Design Systems* ........................ 5,000 168,750
Dialogic* ...................................... 5,000 298,750
GT Interactive Software* ....................... 30,000 506,250
Hummingbird Communications* .................... 20,000 607,500
Infonautics (Class A)* ......................... 5,000 40,000
Informix* ...................................... 25,000 560,938
Mentor Graphics ................................ 70,000 1,133,125
Metatools* ..................................... 5,000 116,875
Microsoft ...................................... 10,000 1,200,625
Oracle Systems* ................................ 22,500 887,344
Parametric Technology* ......................... 23,000 996,188
Siebel Systems* ................................ 20,000 607,500
Structural Dynamics Research* .................. 5,000 109,375
Synopsys* ...................................... 15,000 598,125
Wonderware* .................................... 25,000 475,000
------------
8,940,720
------------
CONTRACT MANUFACTURING/CIRCUIT BOARDS -- 3.3%
Hadco* ......................................... 27,000 573,750
Merix* ......................................... 20,000 397,500
Sanmina* ....................................... 10,000 270,000
Solectron* ..................................... 10,000 378,750
------------
1,620,000
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-12 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
INFORMATION SERVICES -- 0.2%
MetroMail* ..................................... 5,000 shs. $ 111,875
----------
INTERNET/ONLINE -- 1.9%
America Online* ................................ 15,000 654,375
CompuServe* .................................... 15,000 316,875
----------
971,250
----------
PUBLISHING -- 1.8%
K-III Communications* .......................... 70,000 875,000
----------
SEMICONDUCTORS -- 13.5%
Analog Devices ................................. 16,000 408,000
Atmel .......................................... 15,000 452,812
Information Storage Devices* ................... 35,000 328,125
Intel .......................................... 13,000 954,687
International Rectifier* ....................... 40,000 645,000
Lattice Semiconductor* ......................... 24,000 579,000
Linear Technology .............................. 13,000 389,188
Maxim Integrated Products* ..................... 20,000 546,250
Microchip Technology* .......................... 20,000 500,000
Oak Technology ................................. 20,000 188,750
S3 ............................................. 40,000 495,000
Xilinx* ........................................ 30,000 950,625
Zilog .......................................... 10,000 240,000
----------
6,677,437
----------
SEMICONDUCTOR CAPITAL EQUIPMENT-- 3.6%
Asyst Technologies* ............................ 10,000 178,750
Cognex ......................................... 35,000 570,937
Credence Systems* .............................. 15,000 201,563
Electro Scientific* ............................ 15,000 309,375
Novellus Systems* .............................. 15,000 543,750
----------
1,804,375
----------
TELECOMMUNICATIONS -- 2.3%
Brite Voice Systems* ........................... 2,000 42,500
Millicom International Cellular* ............... 5,000 236,562
Paging Network* ................................ 5,000 119,063
Pairgain Technologies* ......................... 5,000 310,312
U.S. Robotics .................................. 5,000 426,875
----------
1,135,312
----------
Total Common Stocks (Cost $40,809,008) ......... 37,383,094
----------
SHORT-TERM HOLDINGS -- 28.0%
REPURCHASE AGREEMENTS -- 27.4%
HSBC Securities, Inc. 4 1/2%, dated 6/26/1996,
maturing 7/3/1996 collateralized by:
$12,550,000 U.S. Treasury Notes 8 3/4%, 11/15/2008,
with a fair market value of $13,902,876 ...... $ 13,600,000 13,600,000
FIXED TIME DEPOSITS-- 0.6%
National Westminster Bank, Nassau, 5 1/16%, 7/1/1996 275,000 275,000
-----------
Total Short-Term Holdings (Cost $13,875,000) ... 13,875,000
-----------
Total Investments-- 103.4% (Cost $54,684,008) .. 51,258,094
Other Assets Less Liabilities-- (3.4)% ......... (1,694,923)
-----------
Net Assets-- 100.0% ............................ $49,563,171
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-13 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
Principal
Amount Value
--------- -----
U.S. GOVERNMENT SECURITIES AND AGENCIES -- 51.6%
U.S. GOVERNMENT SECURITIES -- 28.4%
U.S. Treasury Bonds 8 3/4%, 5/15/2020 ........... $600,000 $ 717,187
U.S. Treasury Notes 7 1/4%, 8/15/2004 ........... 500,000 517,812
----------
Total U.S. Government Securities (Cost $1,264,899) 1,234,999
----------
U.S. GOVERNMENT AGENCIES -- 23.2%
Federal National Mortgage Association
7%, 5/1/2026+ ............................... 507,867 489,295
Government National Mortgage Association Obligations:
10%, 12/15/2020+ ............................ 224,491 244,835
7 1/2%, 6/15/2023+ ........................... 278,485 274,740
----------
Total U.S. Government Agencies (Cost $1,000,814) 1,008,870
----------
Total U.S. Government Securities
and Agencies (Cost $2,265,713) ............... 2,243,869
----------
CORPORATE BONDS -- 29.4%
AEGON 8%, 8/15/2006 ............................ 150,000 156,747
American Home 7.90%, 2/15/2005 ................. 150,000 157,194
Capital One Bank 8 1/8%, 3/1/2000 ............... 150,000 155,019
Continental Cablevision 8.30%, due 5/15/2006 ... 200,000 207,299
First Union 6.55%, 10/15/2035 .................. 200,000 190,372
First USA Bank 5 3/4%, 1/15/1999 ................ 100,000 97,592
General Motors Acceptance 5 5/8%, 2/1/1999 ...... 150,000 146,755
United Telecommunications 9 1/2%, 4/1/2003 ...... 150,000 166,902
----------
Total Corporate Bonds (Cost $1,260,556) ........ 1,277,880
----------
ASSET-BACKED SECURITIES -- 4.6% (Cost $199,969)
Advanta 7.44%, 8/25/2018+ ...................... 200,000 200,140
----------
SHORT-TERM HOLDINGS -- 12.8%
Canadian Imperial Bank of Commerce, Grand Cayman,
Fixed Time Deposit, 5.20%, 7/3/1996 .......... 185,000 185,000
First National Bank of Chicago, Grand Cayman,
Fixed Time Deposit, 4 15/16%, 7/3/1996 ........ 185,000 185,000
National Westminster Bank, Nassau, Fixed
Time Deposit, 5 1/16%, 7/3/1996 ............... 185,000 185,000
----------
Total Short-Term Holdings (Cost $555,000) ...... 555,000
----------
Total Investments-- 98.4% (Cost $4,281,238) .... 4,276,889
Other Assets Less Liabilities-- 1.6% ........... 68,284
----------
Net Assets-- 100.0% ............................ $4,345,173
==========
- ----------
+ Investments in mortgage-backed and asset-backed securities are subject to
principal paydowns. As a result of prepayments from refinancing or
satisfaction of the underlying instruments, the average life may be less
than the original maturity. This in turn may impact the ultimate yield
realized on these investments.
See notes to financial statements.
-- P-14 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 93.9%
ADVERTISING -- 0.9%
Heritage Media (Class A)* ...................... 4,045 $ 161,294
Katz Media Group* .............................. 3,530 50,744
------------
212,038
------------
AEROSPACE AND DEFENSE -- 2.2%
Avondale Industries* ........................... 13,500 242,156
BDM International* ............................. 5,710 265,515
------------
507,671
------------
APPAREL -- 0.8%
St. John Knits ................................. 4,120 183,855
------------
BUSINESS GOODS AND SERVICES -- 18.3%
AccuStaff* ..................................... 7,500 205,313
Affiliated Computer Services (Class A)* ........ 1,400 65,975
Barefoot ....................................... 6,730 73,189
Bell & Howell Holdings* ........................ 6,290 205,211
BISYS Group* ................................... 4,875 183,117
Ceridian* ...................................... 6,700 338,350
Corporate Express* ............................. 11,500 460,719
DST Systems* ................................... 11,200 358,400
Fair Isaac ..................................... 1,700 75,225
HFS* ........................................... 6,000 420,000
Intelliquest Information Group ................. 5,500 182,187
Inter-Tel* ..................................... 8,600 225,750
May & Speh* .................................... 7,800 120,900
National Data .................................. 5,950 203,788
Nu-Kote Holdings (Class A)* .................... 7,200 118,350
Profit Recovery Group International* ........... 3,500 69,562
US Office Products* ............................ 5,800 242,875
Vincam Group* .................................. 13,000 344,500
Walsh International* ........................... 20,000 183,750
Wilmar Industries* ............................. 3,000 76,500
------------
4,153,661
------------
CAPITAL GOODS -- 4.0%
DT Industries .................................. 2,900 53,288
Fusion Systems* ................................ 1,245 31,436
Greenfield Industries .......................... 5,090 169,242
Oak Industries* ................................ 6,430 190,489
UCAR International* ............................ 8,100 337,163
Wolverine Tube* ................................ 3,855 134,925
------------
916,543
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-15 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
------ -----
COMMUNICATIONS -- 3.9%
Arch Communications Group* ..................... 5,865 $ 108,503
CIDCO* ......................................... 4,880 172,020
Glenayre Technologies* ......................... 5,000 249,687
KVH Industries* ................................ 20,000 186,250
MobileMedia (Class A)* ......................... 3,720 44,640
Omnipoint* ..................................... 3,800 99,038
ProNet* ........................................ 1,370 16,868
------------
877,006
------------
COMPUTER HARDWARE/PERIPHERALS -- 2.1%
Electronics for Imaging* ....................... 2,720 188,870
Planar Systems* ................................ 9,010 127,829
Pomeroy Computer Resources* .................... 11,000 160,875
------------
477,574
------------
COMPUTER SOFTWARE AND SERVICES -- 8.7%
Amisys Managed Care Systems* ................... 20,000 521,250
CompuServe* .................................... 6,500 137,312
Control Data Systems ........................... 10,500 225,094
Mentor Graphics* ............................... 13,000 210,438
MetroMail* ..................................... 6,200 138,725
SPS Transaction Services* ...................... 2,570 46,260
SunGard Data Systems* .......................... 3,600 144,225
Sunquest Information Systems* .................. 21,000 312,375
Synopsys* ...................................... 5,540 220,907
Zilog* ......................................... 1,000 24,000
------------
1,980,586
------------
CONSTRUCTION AND SERVICES -- 1.3%
AMRE* .......................................... 13,100 286,562
------------
CONSUMER GOODS AND SERVICES -- 2.1%
Oakley* ........................................ 10,700 486,850
------------
DRUGS AND HEALTH CARE -- 12.3%
American HomePatient* .......................... 2,000 88,000
AmeriSource Health (Class A)* .................. 5,330 177,223
Community Psychiatric Centers .................. 8,885 84,407
General Nutrition* ............................. 11,500 200,531
National Surgery Centers* ...................... 4,350 117,994
Omnicare ....................................... 10,000 265,000
Parexel International* ......................... 9,000 430,875
Protein Design Labs* ........................... 3,050 68,244
R.P. Scherer* .................................. 7,800 353,925
Total Renal Care Holdings* ..................... 9,200 388,700
Vivra* ......................................... 6,400 210,400
Watson Pharmaceuticals* ........................ 10,600 401,475
------------
2,786,774
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-16 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
------ -----
ELECTRONICS -- 4.4%
Cognex* ........................................ 16,460 $ 268,504
Credence Systems* .............................. 5,000 67,188
Electroglas* ................................... 5,000 70,937
Lattice Semiconductor* ......................... 3,170 76,476
Maxim Integrated Products ...................... 5,100 139,294
Sanmina* ....................................... 6,000 162,000
Vicor* ......................................... 9,060 211,211
------------
995,610
------------
FARM EQUIPMENT -- 0.4%
AGCO ........................................... 3,420 94,905
------------
FINANCIAL SERVICES -- 5.5%
CMAC Investment ................................ 3,100 178,250
Commerce Bancorp ............................... 2,625 62,016
First Investors Financial Services Group* ...... 3,900 43,631
First Savings Bank of Washington ............... 3,700 57,581
Flushing Financial* ............................ 3,300 56,513
GCR Holdings ................................... 3,800 100,225
Jayhawk Acceptance* ............................ 8,300 114,644
Klamath First Bancorp .......................... 3,500 50,969
Leasing Solutions* ............................. 3,900 60,450
T. Rowe Price .................................. 4,850 149,744
Roosevelt Financial Group ...................... 7,300 140,981
Southern Pacific Funding* ...................... 11,500 201,250
Statewide Financial* ........................... 3,800 46,312
------------
1,262,566
------------
FOOD AND BEVERAGES -- 0.6%
Canandaigua Wine (Class A)* .................... 4,575 137,822
------------
GAMING -- 1.2%
GTECH Holdings* ................................ 8,900 263,662
------------
INSURANCE -- 1.7%
First Commonwealth* ............................ 6,200 173,600
Meadowbrook Insurance Group .................... 6,900 212,175
------------
385,775
------------
MANUFACTURING -- 1.3%
American Homestar* ............................. 4,000 102,000
Buckeye Cellulose* ............................. 7,000 193,375
------------
295,375
------------
MEDIA AND BROADCASTING -- 3.9%
Argyle Television (Class A)* ................... 8,600 212,850
Chancellor Broadcasting (Class A)* ............. 4,400 138,325
Evergreen Media (Class A)* ..................... 5,800 246,500
Jacor Communications* .......................... 5,550 172,397
Paxson Communications* ......................... 12,800 136,000
------------
906,072
------------
MEDICAL PRODUCTS AND TECHNOLOGY -- 7.7%
Cardiac Pathways* .............................. 17,850 262,172
CompDent* ...................................... 3,900 180,862
Dentsply International ......................... 7,385 312,478
ESC Medical Systems* ........................... 16,500 451,687
Rural/Metro* ................................... 4,800 163,800
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-17 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
MEDICAL PRODUCTS AND TECHNOLOGY (continued)
Sybron International* .......................... 7,080 shs. $ 177,000
Waters* ........................................ 6,400 211,200
-----------
1,759,199
-----------
OIL AND GAS -- 1.4%
Pogo Producing ................................. 4,510 171,944
Santa Fe Energy Resources ...................... 12,000 142,500
-----------
314,444
-----------
PUBLISHING -- 1.6%
Applied Graphics Technologies* ................. 15,000 240,000
World Color Press .............................. 5,200 131,950
-----------
371,950
-----------
RESTAURANTS -- 1.0%
Longhorn Steaks* ............................... 8,700 215,325
-----------
RETAIL TRADE -- 1.8%
Casey's General Stores ......................... 8,795 173,701
Consolidated Stores* ........................... 2,500 91,875
Friedman's (Class A)* .......................... 3,800 97,375
Saks Holdings* ................................. 1,600 54,600
-----------
417,551
-----------
SPECIALTY CHEMICALS -- 1.8%
Minerals Technologies .......................... 6,400 219,200
Sealed Air* .................................... 5,480 184,265
-----------
403,465
-----------
TRANSPORTATION -- 1.6%
United Transnet* ............................... 15,100 371,838
-----------
UTILITIES -- 1.4%
CalEnergy* ..................................... 12,060 307,530
-----------
Total Common Stocks (Cost $20,604,448) ......... 21,372,209
REPURCHASE AGREEMENTS -- 9.4% (Cost $2,150,000)
HSBC Securities, Inc. 4 1/2%, dated 6/26/1996,
maturing 7/3/1996 collateralized by:
$2,000,000 U.S. Treasury Notes 8 3/4%, 11/15/2008,
with a fair market value of $2,215,598 ..... $ 2,150,000 2,150,000
-----------
Total Investments-- 103.3% (Cost $22,754,448) .. 23,522,209
Other Assets Less Liabilities-- (3.3)% ......... (759,065)
-----------
Net Assets-- 100.0% ............................ $22,763,144
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-18 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 97.6%
AEROSPACE/DEFENSE-- 0.7%
Rolls-Royce (UK) ............................... 12,000 $ 41,704
------------
BANKING -- 10.6%
Banco de Santander (Spain) ..................... 1,749 81,510
CS Holdings (Switzerland) ...................... 429 40,727
Deutsche Bank (Germany) ........................ 1,608 76,067
HSBC Holdings (Hong Kong) ...................... 3,600 54,414
Malayan Banking (Malaysia) ..................... 3,500 33,681
Royal Bank of Scotland (UK) .................... 6,200 47,423
Siam Commercial Bank (Thailand) ................ 2,600 37,680
Societe Generale (France) ...................... 756 83,028
Sumitomo Trust Banking (Japan) ................. 5,000 68,415
UTD Overseas Bank (Singapore) .................. 3,684 35,246
Westpac Banking (Australia) .................... 10,500 46,526
------------
604,717
------------
BUILDING MATERIALS -- 0.7%
Gujurat Ambuja Cement (GDSs) (India) ........... 3,360 39,480
------------
CHEMICALS -- 5.9%
Bayer (Germany) ................................ 2,595 91,174
DSM (Netherlands) .............................. 667 66,150
Norsk Hydro (Norway) ........................... 1,434 70,090
Sandoz (Switzerland) ........................... 74 84,479
Toyo Ink Manufacturing (Japan) ................. 4,000 22,914
------------
334,807
------------
CONSTRUCTION AND PROPERTY -- 2.6%
DBS Land (Singapore) ........................... 15,000 51,446
Land and House (Thailand) ...................... 3,000 37,806
Sun Hung Kai Properties (Hong Kong) ............ 6,000 60,653
------------
149,905
------------
CONSUMER PRODUCTS -- 6.2%
CSK (Japan) .................................... 3,000 89,213
KAO (Japan) .................................... 4,000 54,002
Matthew Clark (UK) ............................. 4,000 47,724
Nestle (Switzerland) ........................... 73 83,221
Sankyo (Japan) ................................. 1,000 38,312
United Industrial (Singapore) .................. 40,000 40,816
------------
353,288
------------
ELECTRONICS -- 6.4%
Alps Electric (Japan) .......................... 3,000 36,397
Pioneer Electronic (Japan) ..................... 7,000 166,659
Samsung Electronics (GDRs)*+ (South Korea) ..... 301 7,450
Samsung Electronics (GDSs)*+ (South Korea) ..... 1,000 24,750
Samsung Electronics (GDRs) (Voting)*+ (South Korea) 9 461
Samsung Electronics (GDSs) (Voting)*+ (South Korea) 30 1,523
Toshiba (Japan) ................................ 18,000 128,073
------------
365,313
------------
- ----------
* Non-income producing security.
+ Rule 144A security.
See notes to financial statements.
-- P-19 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
ENGINEERING -- 2.0%
Siebe (UK) ..................................... 5,000 $ 70,904
United Engineers (Malaysia) .................... 6,000 41,620
------------
112,524
------------
FINANCE AND INSURANCE -- 9.5%
Assicurazione Generali (Italy) ................. 3,665 84,427
AXA (France) ................................... 1,532 83,710
ING Groep (Netherlands) ........................ 3,017 89,866
Istituto Nazionale delle Assicurazioni (Italy) . 56,453 84,060
Mitsui Marine & Fire (Japan) ................... 10,000 79,453
Nomura Securities (Japan) ...................... 2,000 39,042
Zurich Versicherung (Switzerland) .............. 297 80,795
------------
541,353
------------
HEALTH AND HOUSEHOLD -- 1.4%
Roussel-Uclaf (France) ......................... 338 80,997
------------
INDUSTRIAL GOODS & SERVICES -- 5.2%
ABB (Switzerland) .............................. 70 86,446
Cie Generale des Eaux (France) ................. 797 88,922
CITIC Pacific* (China) ......................... 15,000 60,653
Guangdong Investments (China) .................. 95,000 60,137
------------
296,158
------------
LEISURE AND HOTELS -- 2.6%
Accor (France) ................................. 522 72,927
Granada Group (UK) ............................. 5,400 72,219
------------
145,146
------------
MANUFACTURING -- 6.1%
Adidas (Germany) ............................... 605 50,312
Caradon (UK) ................................... 11,500 38,539
FKI Babcock (UK) ............................... 16,125 42,530
Siemens (Germany) .............................. 1,540 82,428
SMH Neuenberg (Switzerland) .................... 295 46,009
Tokyo Steel Manufacturing (Japan) .............. 1,000 19,612
Yamaha (Japan) ................................. 4,000 66,043
------------
345,473
------------
MEDIA -- 5.0%
Elsevier (Netherlands) ......................... 5,585 84,636
News Corp. (Australia) ......................... 9,220 52,320
Nippon Television Network (Japan) .............. 110 34,116
Reuters Holdings (UK) .......................... 4,000 48,345
WPP Group (UK) ................................. 19,000 63,379
------------
282,796
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-20 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
METALS -- 3.8%
Hindalco Industries (GDRs)+ (India) ............ 500 $ 18,937
Mitsubishi Materials (Japan) ................... 13,000 70,677
Sumitomo Metal Industries (Japan) .............. 25,000 76,625
Sumitomo Sitix (Japan) ......................... 1,000 22,075
Tsubaki Nakashima (Japan) ...................... 2,000 24,812
------------
213,126
------------
PAPER AND PACKAGING -- 1.7%
Hokkai Can (Japan) ............................. 3,000 23,672
Stora Kopparbergs (Sweden) ..................... 5,595 73,742
------------
97,414
------------
RESOURCES -- 5.0%
British Petroleum (UK) ......................... 5,800 50,798
Broken Hill Proprietary (Australia) ............ 3,206 44,335
ELF Aquitaine (France) ......................... 1,171 86,025
Nippon Oil (Japan) ............................. 3,000 20,333
WMC (Australia) ................................ 7,000 50,135
YPF Sociedad Anomima (ADRs) (Argentina) ........ 1,400 31,500
------------
283,126
------------
RESTAURANTS -- 0.6%
Denny's (Japan) ................................ 1,000 35,485
------------
RETAILING -- 4.7%
Aoyama Trading (Japan) ......................... 800 20,944
Carrefour Supermarche (France) ................. 106 59,318
Carrefour Supermarche (Rights)* (France) ....... 106 29,536
Joshin Denki (Japan) ........................... 2,000 28,826
SM Prime Holdings (Philippines) ................ 162,000 42,062
Tesco (UK) ..................................... 14,300 65,228
Tsutsumi Jewelry (Japan) ....................... 500 24,173
------------
270,087
------------
SUPPORT SERVICES -- 1.0%
Rentokil (UK) .................................. 9,400 59,649
------------
TELECOMMUNICATIONS -- 5.7%
Grupo Carso (ADRs)*+ (Mexico) .................. 1,000 14,169
L.M. Ericsson (Series B) (Sweden) .............. 3,820 82,282
Nippon Telegraph & Telephone (Japan) ........... 19 140,734
Olivetti (Italy) ............................... 68,362 36,841
Telekommunikasi (Indonesia) .................... 500 755
Telekommunikasi (ADRs) (Indonesia) ............. 1,650 49,088
------------
323,869
------------
- ----------
* Non-income producing security.
+ Rule 144A security.
See notes to financial statements.
-- P-21 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
TOBACCO -- 1.1%
B.A.T. Industries (UK) ......................... 8,000 $ 62,184
----------
TRANSPORTATION -- 6.7%
British Airport Authority (UK) ................. 6,000 43,566
East Japan Railway (Japan) ..................... 20 104,903
Lufthansa (Germany) ............................ 518 73,240
Mitsui O.S.K. Lines (Japan) .................... 22,000 75,859
Perusahaan Otomobil Nasional (Malaysia) ........ 8,000 43,625
Swire Pacific (Hong Kong) ...................... 5,000 42,793
----------
383,986
----------
UTILITIES -- 1.4%
Iberdrola (Spain) .............................. 7,654 78,440
----------
MISCELLANEOUS -- 1.0%
Taiwan Fund (Taiwan) ........................... 5,000 56,875
----------
Total Investments-- 97.6% (Cost $5,156,152) .... 5,557,902
Other Assets Less Liabilities-- 2.4% ........... 139,119
----------
Net Assets-- 100.0% ............................ $5,697,021
==========
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 92.5%
APPAREL AND TEXTILES -- 1.3%
Liz Claiborne (US) ............................. 100 $ 3,463
------------
COMPUTER AND TECHNOLOGY RELATED -- 10.7%
CMG* (UK) ...................................... 1,100 11,230
Informix* (US) ................................. 200 4,487
Microsoft* (US) ................................ 100 12,006
------------
27,723
------------
CONSUMER GOODS AND SERVICES -- 16.7%
Oakley* (US) ................................... 100 4,550
PepsiCo (US) ................................... 100 3,538
Puma* (Germany) ................................ 360 12,944
R.J. Reynolds (Malaysia) ....................... 4,000 11,788
SMH Neuenberg (Switzerland) .................... 67 10,450
------------
43,270
------------
DIVERSIFIED -- 4.7%
CITIC Pacific* (China) ......................... 3,000 12,131
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-22 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
Shares Value
------ -----
DRUGS AND HEALTH CARE -- 10.3%
Amgen* (US) .................................... 100 $ 5,387
Columbia/HCA Healthcare (US) ................... 100 5,338
Hogy Medical (Japan) ........................... 200 10,855
United Healthcare (US) ......................... 100 5,050
--------
26,630
--------
ENTERTAINMENT AND LEISURE -- 12.1%
Accor (France) ................................. 75 10,478
Granada Group (UK) ............................. 900 12,037
Sun International Hotels (US) .................. 100 4,850
Viacom (Class B) (US) .......................... 100 3,887
--------
31,252
--------
FINANCIAL SERVICES -- 6.0%
MBNA (US) ...................................... 100 2,850
Sanyo Shinpan Finance (Japan) .................. 200 12,789
--------
15,639
--------
INDUSTRIAL GOODS AND SERVICES -- 4.3%
ABB (Switzerland) .............................. 9 11,114
--------
MANUFACTURING AND INDUSTRIAL EQUIPMENT -- 3.7%
Larsen & Toubro (GDSs) (India) ................. 500 9,435
--------
MEDIA -- 4.6%
Chubu Nippon Broadcasting (Japan) .............. 500 11,904
--------
RESOURCES -- 4.4%
WMC (Australia) ................................ 1,600 11,459
--------
RETAILING -- 3.7%
Tsutsumi Jewelry (Japan) ....................... 200 9,669
--------
TELECOMMUNICATIONS -- 10.0%
DDI (Japan) .................................... 1 8,721
L.M. Ericsson Telefon (Series B) (Sweden) ...... 470 10,124
Telebras (ADRs) (Brazil) ....................... 100 7,151
--------
25,996
--------
Total Investments-- 92.5% (Cost $239,596) ...... 239,685
Other Assets Less Liabilities-- 7.5% ........... 19,360
--------
Net Assets-- 100.0% ............................ $259,045
========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-23 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
Shares Value
------ -----
COMMON STOCKS--94.3%
ADVERTISING -- 1.5%
Asatsu (Japan) ................................. 1,000 $ 43,330
Heritage Media (Class A)* (US) ................. 1,340 53,433
Katz Media Group* (US) ......................... 2,200 31,625
Outdoor Systems* (US) .......................... 1,300 45,175
------------
173,563
------------
AUTOMOTIVE PARTS MANUFACTURING -- 4.5%
Equipements et Composants pour I'lndustrie
Automobile (France) .......................... 410 56,325
Forsheda (Sweden) .............................. 4,958 107,162
Industria Macchine Auto (Italy) ................ 10,300 72,490
Montupet (France) .............................. 439 57,498
Nippon Seiki (Japan) ........................... 3,000 49,532
Nokian Tyres* (Finland) ........................ 5,000 73,252
Sylea (France) ................................. 855 94,896
------------
511,155
------------
BUILDING MATERIALS -- 1.5%
Gujurat Ambuja Cement (GDSs) (India) ........... 839 9,858
Malayan Cement (Malaysia) ...................... 11,000 26,464
Mulia Industrindo (Indonesia) .................. 32,800 48,641
Mulia Industrindo (Rights)* (Indonesia) ........ 7,120 5,317
Polypipe (UK) .................................. 17,500 55,117
Tipco Asphalt (Thailand) ....................... 5,000 29,536
------------
174,933
------------
BUSINESS SERVICES -- 3.0%
BISYS Group* (US) .............................. 1,600 60,100
Cort Business Services (US) .................... 2,400 46,800
Fujitsu Business Systems (Japan) ............... 2,000 55,279
IBC Holdings (UK) .............................. 10,000 48,717
Nu-Kote Holdings (Class A)* (US) ............... 1,690 27,779
SIG Schweitz Industrie (Switzerland) ........... 46 53,211
SunGard Data Systems* (US) ..................... 1,160 46,472
------------
338,358
------------
CAPITAL GOODS -- 0.6%
Fusion Systems* (US) ........................... 800 20,200
Tsubakimoto Precision (Japan) .................. 4,000 49,624
------------
69,824
------------
CHEMICALS -- 1.3%
Chemical Company of Malaysia (Malaysia) ........ 5,000 16,038
Chemical Company of Malaysia (Warrants)* (Malaysia) 1,250 1,608
Hoganas (Series B) (Sweden) .................... 2,200 76,880
Toyo Ink Manufacturing (Japan) ................. 10,000 57,286
------------
151,812
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-24 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
COMMERCIAL SERVICES -- 0.7%
ICT Group* (US) ................................ 1,500 $ 28,688
Physician Support Systems (US) ................. 900 20,138
Skilled Engineering (Australia) ................ 13,000 36,322
------------
85,148
------------
COMPUTER SOFTWARE -- 6.1%
CMG (UK) ....................................... 7,400 75,546
CSG Systems International (US) ................. 2,500 64,375
Dendrite International* (US) ................... 4,000 138,500
F.I. Group* (UK) ............................... 4,300 25,685
Imnet Systems (US) ............................. 3,300 100,238
Mentor Graphics (US) ........................... 4,400 71,225
Parity (UK) .................................... 13,000 52,844
Pomeroy Computer Resources * (US) .............. 2,000 29,250
Software 2000* (US) ............................ 4,200 68,512
Synopsys* (US) ................................. 1,670 66,591
------------
692,766
------------
CONSTRUCTION AND PROPERTY -- 6.8%
Allied Leisure (UK) ............................ 50,000 34,133
Asas Dunia (Malaysia) .......................... 5,000 19,848
Ashstead Group (UK) ............................ 22,500 59,345
Bau Holdings (Voting Preference Shares) (Austria) 1,380 70,169
Bukit Sembawang Estates (Singapore) ............ 2,000 52,013
Danske Traelastkompagni (Denmark) .............. 1,143 83,888
Higashi Nihon House (Japan) .................... 3,000 52,543
Kampa-Haus (Germany) ........................... 2,880 125,279
Metacorp (Malaysia) ............................ 8,000 23,095
Mitsui Home (Japan) ............................ 4,000 64,949
New Asia Realty (Hong Kong) .................... 16,000 51,675
Sto (Germany) .................................. 200 99,728
Tilbury Douglas (UK) ........................... 5,700 44,925
------------
781,590
------------
CONSUMER GOODS AND SERVICES -- 5.2%
Apcoa Parking* (Germany) ....................... 675 61,116
Canandaigua Wine (Class A)* (US) ............... 3,415 102,877
Childtime Learning Centers* (US) ............... 4,600 50,025
Ekornes (Norway) ............................... 7,500 110,090
Oakley* (US) ................................... 2,000 91,000
Revlon (Class A) (US) .......................... 700 20,388
St. John Knits (US) ............................ 900 40,163
SITEL* (US) .................................... 2,000 83,500
Sorini (Indonesia) ............................. 2,000 11,004
Want Want* (Singapore) ......................... 8,000 21,400
------------
591,563
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-25 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
DRUGS AND HEALTH CARE -- 3.3%
AmeriSource Health (Class A)* (US) ............. 3,300 $ 109,725
Darya-Varia Lab (Indonesia) .................... 10,720 22,175
Horizon Mental Health Management (US) .......... 2,400 68,400
Tamro (Finland) ................................ 25,000 149,736
Towa Pharmaceutical (Japan) .................... 1,000 31,562
------------
381,598
------------
ELECTRIC UTILITIES -- 1.2%
CalEnergy* (US) ................................ 5,200 132,600
------------
ELECTRICAL DISTRIBUTION -- 0.3%
Trifast (UK) ................................... 5,600 34,145
------------
ELECTRONICS -- 5.3%
Abacus Polar (UK) .............................. 10,500 32,907
Berg Electronics (US) .......................... 1,200 28,500
BMC Industries (US) ............................ 600 17,250
Credence Systems* (US) ......................... 2,125 28,555
Electro Scientific Industries* (US) ............ 2,790 57,544
Enplas (Japan) ................................. 1,000 21,072
Druck (UK) ..................................... 300 16,119
Fairey Group (UK) .............................. 5,000 51,044
Horiba Instruments (Japan) ..................... 4,000 55,827
ISA International (UK) ......................... 19,500 53,550
Lem Holdings (Switzerland) ..................... 67 19,563
LoJack* (US) ................................... 8,000 91,000
Otra (Netherlands) ............................. 3,640 83,700
Ryoyo Electro (Japan) .......................... 2,000 43,056
------------
599,687
------------
FINANCIAL SERVICES -- 8.0%
Finnveden (Series B)* (Sweden) ................. 7,550 97,802
Fokus Bank (Norway) ............................ 13,000 70,734
Ichiyoshi Securities (Japan) ................... 8,000 51,740
Jayhawk Acceptance* (US) ....................... 3,200 44,200
Manhattan Card (Hong Kong) ..................... 84,500 40,391
Mutual Risk Management (US) .................... 266 8,333
Nisshin Fire & Marine Insurance (Japan) ........ 16,000 78,814
T. Rowe Price (US) ............................. 1,400 43,225
Roosevelt Financial Group (US) ................. 8,000 154,500
Southern Pacific Funding* (US) ................. 11,500 201,250
Ssangyong Investment & Securities* (South Korea) 2,000 35,996
UnionAmerica Holdings (ADRs) (UK) .............. 4,500 68,063
World Acceptance* (US) ......................... 2,200 16,225
------------
911,273
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-26 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
INDUSTRIAL GOODS AND SERVICES -- 1.7%
Angpanneforeningen (Class B) (Sweden) .......... 5,325 $ 69,782
BTG* (UK) ...................................... 500 12,373
Mitsubishi Cable (Japan) ....................... 4,000 27,001
Technip* (France) .............................. 923 84,892
------------
194,048
------------
LEISURE AND HOTELS -- 2.2%
Anchor Gaming* (US) ............................ 700 42,088
Fine Host* (US) ................................ 4,000 48,250
GTECH Holdings* (US) ........................... 3,100 91,838
Stratosphere* (US) ............................. 3,300 19,903
Sun International Hotels* (US) ................. 1,000 48,500
------------
250,579
------------
MANUFACTURING -- 15.6%
AGCO (US) ...................................... 800 22,200
Asahi Diamond Industries (Japan) ............... 10,090 131,619
Assystem (France) .............................. 1,000 116,422
Bacou USA (US) ................................. 2,500 43,906
British Polythene Industries (UK) .............. 4,500 51,595
Cobham (UK) .................................... 4,700 46,341
Danto (Japan) .................................. 4,000 54,002
David Brown Group (UK) ......................... 19,657 65,265
Domnick Hunter (UK) ............................ 9,500 58,515
Futuris (Australia) ............................ 32,512 37,359
Glory Kogyo (Japan) ............................ 2,000 66,226
Hokushin (Japan) ............................... 4,000 51,083
Iro* (Sweden) .................................. 11,570 118,508
Kalmar Industries (Sweden) ..................... 4,563 96,224
Lassila & Tikanoja (Finland) ................... 1,800 108,586
Lintec (Japan) ................................. 2,000 34,481
Memtec (ADRs) (Australia) ...................... 1,500 54,562
Namura Shipbuilding (Japan) .................... 5,000 28,278
Nichicon (Japan) ............................... 4,000 58,016
Nissha Printing (Japan) ........................ 2,000 29,008
Opta Food Ingredients (US) ..................... 5,000 50,625
Plettac (Germany) .............................. 420 97,550
Samas Groep (Netherlands) ...................... 2,800 103,212
Sodick (Japan) ................................. 4,000 47,799
Stoves* (UK) ................................... 7,500 29,789
Tsudakoma (Japan) .............................. 20,000 141,391
Wellington Holdings (UK) ....................... 9,000 37,841
------------
1,780,403
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-27 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
MEDIA -- 2.7%
Capital Radio (UK) ............................. 9,210 $ 93,452
GWR Group (UK) ................................. 13,500 45,242
South China Morning Post (Hong Kong) ........... 66,000 45,190
Teoi (Japan) ................................... 3,000 24,903
Trinity International Holdings (UK) ............ 7,500 50,385
United Video Satellite Group (Class A)* (US) ... 890 19,135
Visual Action Holdings (UK) .................... 9,800 34,971
------------
313,278
------------
MEDICAL PRODUCTS AND TECHNOLOGY -- 3.8%
Cardiovascular Dynamics* (US) .................. 1,150 14,159
CNS* (US) ...................................... 2,200 53,213
Hitachi Medical (Japan) ........................ 3,000 53,364
IDX Systems* (US) .............................. 2,000 77,750
NCS HealthCare (Class A)* (US) ................. 2,500 75,312
Waters* (US) ................................... 5,000 165,000
------------
438,798
------------
METALS -- 1.2%
Nakayama Steel Works (Japan) ................... 9,000 59,193
Sanyo Special Steel (Japan) .................... 12,000 50,791
Sumitomo Sitix (Japan) ......................... 1,000 22,075
------------
132,059
------------
PAPER AND PRINTING -- 2.7%
Applied Extrusion Technology (US) .............. 2,000 32,000
Bobst (Switzerland) ............................ 42 60,479
PLM (Sweden) ................................... 6,700 108,994
Rengo (Japan) .................................. 8,000 56,192
Wace Group (UK) ................................ 18,400 49,102
------------
306,767
------------
RESOURCES -- 0.9%
Nittetsu Mining (Japan) ........................ 6,000 61,300
QNI (Australia) ................................ 19,000 42,469
------------
103,769
------------
RESTAURANTS -- 1.9%
Aiya (Japan) ................................... 2,000 31,562
Kentucky Fried Chicken (Japan) ................. 3,000 58,563
KFC Holdings Malaysia (Malaysia) ............... 5,000 27,065
Pizza Express (UK) ............................. 11,500 65,659
Sagami Chain (Japan) ........................... 2,000 38,860
------------
221,709
------------
RETAILING -- 5.3%
Courts (Singapore) ............................. 18,000 28,699
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-28 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
RETAILING (continued)
Fotolabo Club (Switzerland) .................... 175 $ 72,457
Frost Group (UK) ............................... 8,600 12,809
Hamleys (UK) ................................... 3,500 20,635
Hornbach Baumarkt (Germany) .................... 1,530 68,763
Jardine International Motor Holdings (Hong Kong) 40,000 49,091
Jean Pascale (Germany) ......................... 1,612 30,143
Moebel Walther (Germany) ....................... 3,800 172,030
Pet City Holdings (UK) ......................... 6,000 38,446
Siam Makro Public (Thailand) ................... 5,000 25,007
Tsutsumi Jewelry (Japan) ....................... 1,000 48,347
Xebio (Japan) .................................. 1,000 37,491
-----------
603,918
-----------
TECHNOLOGY -- 1.6%
Asyst Technologies* (US) ....................... 2,600 46,475
Electronics for Imaging* (US) .................. 940 65,271
Opal (Israel) .................................. 3,400 43,350
Photon Dynamics* (US) .......................... 2,300 22,425
-----------
177,521
-----------
TELECOMMUNICATIONS -- 1.0%
American Portable Telecom* (US) ................ 3,800 39,900
Arch Communications Group* (US) ................ 1,600 29,600
KVH Industries* (US) ........................... 5,000 46,563
-----------
116,063
-----------
TEXTILES AND APPAREL -- 0.8%
Designer Holdings* (US) ........................ 2,300 61,237
Komatsu Seiren (Japan) ......................... 3,000 35,576
-----------
96,813
-----------
TRANSPORTATION -- 1.7%
Comfort (Singapore) ............................ 28,000 27,778
Dawson Group (UK) .............................. 10,000 29,634
HUB Group (Class A) (US) ....................... 3,500 71,094
Iino Kaiun* (Japan) ............................ 13,000 70,322
-----------
198,828
-----------
MISCELLANEOUS -- 1.9%
BT Industries (Sweden) ......................... 7,000 107,548
Thorkild Kristensen (Denmark) .................. 1,652 107,180
-----------
214,728
-----------
Total Investments-- 94.3% (Cost $10,041,947) ... 10,779,296
Other Assets Less Liabilities-- 5.7% ........... 651,926
-----------
Net Assets-- 100.0% ............................ $11,431,222
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-29 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO
Shares Value
------ -----
COMMON STOCKS--83.3%
BROADCASTING -- 1.7%
Bell Cablemedia (ADRs)* (UK) ................... 450 $ 7,538
------------
COMMUNICATIONS INFRASTRUCTURE -- 6.4%
Cisco Systems* (US) ............................ 100 5,669
3Com* (US) ..................................... 100 4,569
U.S. Robotics (US) ............................. 200 17,075
------------
27,313
------------
COMPUTER HARDWARE/PERIPHERALS -- 7.0%
Canon (Japan) .................................. 1,000 20,798
Hewlett-Packard (US) ........................... 50 4,981
Sun Microsystems* (US) ......................... 75 4,416
------------
30,195
------------
COMPUTER SOFTWARE -- 22.9%
Azlan Group (UK) ............................... 680 7,364
Dialogic* (US) ................................. 250 14,937
FORE Systems* (US) ............................. 300 10,819
GT Interactive Software* (US) .................. 150 2,531
IKOS Systems* (US) ............................. 200 4,262
Informix* (US) ................................. 300 6,731
Logica (UK) .................................... 810 8,106
Metatools* (US) ................................ 175 4,091
Microsoft* (US) ................................ 50 6,003
Pairgain Technologies* (US) .................... 75 4,655
PC Dos Group International* (US) ............... 125 2,477
Performance Technologies* (US) ................. 200 2,875
SAP (Germany) .................................. 105 15,445
Synopsys* (US) ................................. 100 3,987
Wonderware* (US) ............................... 200 3,800
------------
98,083
------------
CONTRACT MANUFACTURING -- 1.9%
Venture Manufacturing (Singapore) .............. 4,000 7,370
Venture Manufacturing (Rights)* (Singapore) .... 1,000 709
------------
8,079
------------
ELECTRONICS -- 9.9%
Astec (UK) ..................................... 3,300 7,680
Benchmark Electronics* (US) .................... 200 5,800
Hadco* (US) .................................... 250 5,312
Intel (US) ..................................... 100 7,344
Lernout & Hauspie Speech Products* (Belgium) ... 480 10,800
Macromedia* (US) ............................... 125 2,750
Sanmina* (US) .................................. 100 2,700
------------
42,386
------------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-30 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares or
Principal
Amount Value
--------- -----
INFORMATION SERVICES-- 3.5%
BTG* (UK) ...................................... 280 shs. $ 6,929
Electronic Data Systems (US) ................... 75 4,031
First Data (US) ................................ 50 3,981
--------
14,941
--------
INTERNET/ONLINE -- 5.4%
America Online* (US) ........................... 125 5,453
CSK (Japan) .................................... 600 17,843
--------
23,296
--------
PRINTING AND PUBLISHING -- 3.3%
Gartner Group (Class A)* (US) .................. 300 11,006
News Corp. (ADRs) (Australia) .................. 150 3,019
--------
14,025
--------
TELECOMMUNICATIONS-- 21.3%
Airtouch Communications* (US) .................. 200 5,650
American Telephone & Telegraph (US) ............ 50 3,100
Brite Voice Systems* (US) ...................... 175 3,719
DDI (Japan) .................................... 2 17,441
L.M. Ericsson Telefon (Series B) (Sweden) ...... 700 15,078
Korea Mobile Telecommunications (GDSs) (Korea) . 426 6,920
Natural Microsystems* (US) ..................... 300 10,612
Northern Telecom (US) .......................... 200 10,875
Paging Network* (US) ........................... 225 5,358
T-Netix* (US) .................................. 350 3,850
Telecom Italia Mobile* (Italy) ................. 3,840 8,571
--------
91,174
--------
Total Common Stocks (Cost $361,177) ............ 357,030
--------
SHORT-TERM HOLDINGS -- 35.0%
Bank of Montreal, Toronto, Fixed Time Deposit,
5%, 7/1/1996 ................................. $50,000 50,000
First National Bank of Chicago, Grand Cayman,
Fixed Time Deposit, 5 1/2%, 7/1/1996 .......... 50,000 50,000
National Westminster Bank, Nassau, Fixed Time
Deposit, 5 1/16%, 7/1/1996 .................... 50,000 50,000
--------
Total Short-Term Holdings (Cost $150,000) ...... 150,000
--------
Total Investments-- 118.3% (Cost $511,177) ..... 507,030
Other Assets Less Liabilities-- (18.3)% ........ (78,466)
--------
Net Assets-- 100.0% ............................ $428,564
========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-31 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Principal
Amount Value
--------- -----
CORPORATE BONDS--106.6%
AEROSPACE -- 1.5%
UNC 11%, 6/1/2006+ ............................. $ 100,000 $ 101,750
------------
AUTOMOTIVE -- 1.5%
Hayes Wheels International 11%, 7/15/2006 ...... 100,000 102,250
------------
BROADCASTING -- 4.6%
Allbritton Communications 11 1/2%, 8/15/2004 ... 100,000 102,250
Paxson Communications 11 5/8%, 10/1/2002 ....... 100,000 104,500
SFX Broadcasting 10 3/4%, 5/15/2006+ ........... 100,000 100,000
------------
306,750
------------
CABLE SYSTEMS -- 14.0%
Cablevision Systems 10 1/2%, 5/15/2006 ......... 200,000 195,000
Charter Communications 11 1/4%, 3/15/2006+ ..... 150,000 150,000
Comcast 10 5/8%, 7/15/2012 ..................... 150,000 157,125
Le Groupe Videotron Ltee 10 5/8%, 2/15/2005 .... 100,000 105,250
Rogers Cable Systems 11%, 12/1/2015 ............ 150,000 154,875
Rogers Communications 10 7/8%, 4/15/2004 ....... 100,000 102,000
United International 0% (14%#), 11/15/1999 ..... 100,000 66,000
------------
930,250
------------
CELLULAR -- 6.2%
Centennial Cellular 10 1/8%, 5/15/2005 ......... 150,000 145,125
Commnet Cellular 11 1/4%, 7/1/2005 ............. 100,000 107,000
Pricecellular Wire 0% (12 1/4%**), 10/1/2003 ... 200,000 159,000
------------
411,125
------------
CHEMICALS-- 3.9%
NL Industries 11 3/4%, 10/15/2003 .............. 150,000 153,750
Texas Petrochemicals 11 1/8%, 7/1/2006+ ........ 100,000 102,000
------------
255,750
------------
COMPUTER AND RELATED SERVICES -- 2.3%
Unisys 12%, 4/15/2003+ ......................... 150,000 154,125
------------
CONSUMER PRODUCTS -- 4.1%
Remington Products 11%, 5/15/2006+ ............. 100,000 99,500
Williamhouse-Regency 13%, 11/15/2005+ .......... 150,000 169,875
------------
269,375
------------
ENERGY -- 3.9%
Benton Oil & Gas 11 5/8%, 5/1/2003+ ............ 100,000 103,500
Mesa Operating 10 5/8%, 7/1/2006 ............... 50,000 51,063
United Meridian 10 3/8%, 10/15/2005 ............ 100,000 102,875
------------
257,438
------------
FOOD -- 0.8%
Keebler 10 3/4%, 7/1/2006+ ..................... 50,000 51,625
------------
- ----------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
# Represents effective yield on zero coupon bond.
See notes to financial statements.
-- P-32 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
--------- -----
GAMING/HOTEL -- 18.4%
Alliance Gaming 12 7/8%, 6/30/2003 ............. $ 100,000 $ 100,250
Aztar 11%, 10/1/2002 ........................... 100,000 104,250
Aztar 13 3/4%, 10/1/2004 ....................... 100,000 115,250
Coast Hotels & Casino 13%, 12/15/2002+ ......... 100,000 108,875
Hollywood Casino 12 3/4%, 11/1/2003 ............ 100,000 100,500
PRT Funding 11 5/8%, 4/15/2004 ................. 100,000 92,500
Showboat Marina Casino 13 1/2%, 3/15/2003+ ..... 100,000 108,000
Stratosphere 14 1/4%, 5/15/2002 ................ 100,000 111,500
Trump Atlantic City Funding 11 1/4%, 5/1/2006 .. 100,000 101,000
Trump Hotels & Casino Resorts
Funding 15 1/2%, 6/15/2005 ................... 150,000 178,125
Wyndham Hotel 10 1/2%, 5/15/2006 ............... 100,000 99,875
------------
1,220,125
------------
HEALTH CARE/MEDICAL PRODUCTS -- 4.7%
Dade International 13%, 2/1/2005+ .............. 100,000 104,000
Graphic Controls 12%, 9/15/2005 ................ 100,000 106,500
Paracelsus Healthcare 9 7/8%, 10/15/2003 ....... 100,000 99,000
------------
309,500
------------
LEISURE -- 1.6%
Premier Parks 12%, 8/15/2003 ................... 100,000 106,750
------------
MANUFACTURING -- 4.6%
Exide Electronics 11 1/2%, 3/1/2006+ ........... 100,000 102,500
IMO Industries 11 3/4%, 5/1/2006+ .............. 200,000 205,500
------------
308,000
------------
PAGING -- 5.7%
Metrocall 10 3/8%, 10/1/2007 ................... 100,000 94,000
Mobile Telecommunication Technologies 13 1/2%,
12/15/2002 ................................... 150,000 158,625
ProNet 11 7/8%, 6/15/2005 ...................... 100,000 99,250
ProNet 10 7/8%, 9/15/2006 ...................... 25,000 24,063
------------
375,938
------------
PAPER AND PACKAGING -- 4.0%
Silgan 11 3/4%, 6/15/2002 ...................... 100,000 103,750
S.D. Warren 12%, 12/15/2004 .................... 150,000 159,750
------------
263,500
------------
SUPERMARKETS -- 6.1%
Jitney-Jungle Stores 12%, 3/1/2006 ............. 200,000 205,000
Pathmark Stores 11 5/8%, 6/15/2002 ............. 100,000 100,000
Smiths Food & Drug 11 1/4%, 5/15/2007 .......... 100,000 101,750
------------
406,750
------------
TELECOMMUNICATIONS -- 9.3%
Brooks Fiber Properties 0% (10 7/8%**), 3/1/2006+ 100,000 53,750
Fonorola 12 1/2%, 8/15/2002 .................... 200,000 217,000
Intermedia Communications of Florida 0%
(12 1/2%**), 5/15/2006 ....................... 100,000 55,500
IXC Communications 13%, 10/1/2005+ ............. 100,000 105,000
NextLink Communications 12 1/2%, 4/15/2006+ .... 100,000 100,000
Teleport Communications Group 9 7/8%, 7/1/2006 .. 25,000 25,125
Teleport Communications Group 0%
(11 1/8%**), 7/1/2007 ........................ 100,000 58,750
------------
615,125
------------
- ----------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See notes to financial statements.
-- P-33 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
--------- -----
THEATERS -- 1.5%
Plitt Theatres 10 7/8%, 6/15/2004 .............. $ 100,000 $ 101,000
----------
UTILITIES -- 5.5%
AES 10 1/4%, 7/15/2006 ......................... 100,000 100,875
Midland Cogeneration Venture
11 3/4%, 7/23/2005 ........................... 250,000 264,375
----------
365,250
----------
MISCELLANEOUS -- 2.4%
Herff Jones 11%, 8/15/2005 ..................... 100,000 104,500
Oregon Steel 11%, 6/15/2003 .................... 50,000 51,562
----------
156,062
----------
Total Corporate Bonds (Cost $7,045,576) ........ 7,068,438
----------
CONVERTIBLE BONDS -- 1.6% (Cost $106,520)
COMPUTER AND RELATED SERVICES
EMC 4 1/4%, 1/1/2001 ........................... 100,000 107,750
----------
SHORT-TERM HOLDINGS-- 3.8% (Cost $250,000) ..... 250,000 250,000
----------
Total Investments-- 112.0% (Cost $7,402,096) ... 7,426,188
Other Assets Less Liabilities-- (12.0)% ........ (794,154)
----------
Net Assets-- 100.0% ............................ $6,632,034
==========
SELIGMAN INCOME PORTFOLIO
Principal
Amount Value
--------- -----
CONVERTIBLE SECURITIES -- 45.2%
SUBORDINATED CONVERTIBLE BONDS -- 25.6%
DRUGS AND HEALTH CARE -- 1.4%
Pharmaceutical Marketing Services
6 1/4%, 2/1/2003+ ......................... $ 235,000 $ 180,950
------------
ELECTRONICS -- 1.7%
Streamlogic 6%, 3/15/2012 ................... 350,000 213,500
------------
ENERGY -- 2.4%
Santa Fe Pipelines 11.162%, 8/15/2010 ....... 250,000 306,250
------------
ENVIRONMENTAL SERVICES -- 1.6%
Molten Metal Technology
5 1/2%, 5/1/2006+ ......................... 200,000 198,000
------------
INSURANCE -- 1.7%
Trenwick Group 6%, 12/15/1999 ............... 200,000 218,250
------------
MACHINERY -- 1.7%
Cooper Industries 7.05%, 1/1/2015 ........... 200,000 213,500
------------
RETAILING -- 1.4%
CML Group 5 1/2%, 1/15/2003 ................. 250,000 171,250
------------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-34 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount
or Shares Value
--------- -----
TECHNOLOGY -- 3.5%
EMC 4 1/4%, 1/1/2001 ......................... $ 200,000 $ 215,500
Xilinx 5 1/4%, 11/1/2002+ ................... 250,000 228,750
------------
444,250
------------
TELECOMMUNICATIONS -- 5.9%
LDDS Communications 5%, 8/15/2003 ........... 250,000 360,625
MascoTech 4 1/2%, 12/15/2003 ................ 300,000 238,500
Network Equipment 7 1/4%, 5/15/2014 ......... 147,000 137,996
------------
737,121
------------
TRANSPORTATION -- 0.8%
Airborne Freight 6 3/4%, 8/15/2001 .......... 100,000 100,250
------------
MISCELLANEOUS -- 3.5%
General Signal 5 3/4%, 6/1/2002 ............. 200,000 211,000
TriMas 5%, 8/1/2003 ......................... 200,000 228,500
------------
439,500
------------
Total Subordinated Convertible Bonds
(Cost $3,092,175) ......................... 3,222,821
------------
CONVERTIBLE PREFERRED STOCKS -- 19.6%
ENERGY -- 2.6%
Snyder Oil (Class A) 6% ..................... 5,000 shs. 95,000
Unocal $3.50+ ............................... 4,000 226,500
------------
321,500
------------
ENVIRONMENTAL SERVICES -- 1.9%
Browning-Ferris Industries 7 1/4% ........... 7,500 238,125
------------
INSURANCE -- 5.9%
Alexander & Alexander (Series A) $3.625+ .... 1,500 70,500
American General 3% ......................... 4,500 236,250
FSA 7 5/8% .................................. 7,500 203,438
St. Paul Capital 6% ......................... 4,500 236,250
------------
746,438
------------
PAPER AND FOREST PRODUCTS -- 1.0%
International Paper Capital 5 1/4%+ ......... 3,000 130,500
------------
RETAILING -- 1.9%
Kmart Financing 7 3/4% ...................... 2,000 108,500
TJX $3.125 .................................. 2,000 129,000
------------
237,500
------------
TELECOMMUNICATIONS -- 1.3%
Mobile Telecommunication
Technologies $2.25+ ....................... 6,500 161,687
------------
TRANSPORTATION -- 4.2%
GATX $3.875 ................................. 5,000 291,250
Sea Containers $4.00 ........................ 5,000 235,000
------------
526,250
------------
MISCELLANEOUS -- 0.8%
Corning (Delaware) 6% ....................... 1,700 97,113
------------
Total Convertible Preferred Stocks
(Cost $2,472,786) ......................... 2,459,113
------------
Total Convertible Securities
(Cost $5,564,961) ......................... 5,681,934
------------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-35 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount
or Shares Value
--------- -----
CORPORATE BONDS -- 19.3%
AUTOMOTIVE -- 5.4%
Chrysler Financial 6 1/2%, 6/15/1998 ........ $ 200,000 $ 200,251
Ford Motor Credit 6 3/4%, 8/15/2008 ......... 250,000 236,177
General Motors Acceptance 5 5/8%, 2/1/1999 .. 250,000 244,592
------------
681,020
------------
BANKING AND FINANCE -- 6.5%
Capital One Bank 8 1/8%, 3/1/2000 ........... 250,000 258,366
First USA Bank 5 3/4%, 1/15/1999 ............ 100,000 97,592
MBNA 6.15%, 10/1/2003 ....................... 500,000 469,356
------------
825,314
------------
INSURANCE -- 2.1%
AEGON 8%, 8/15/2006 ......................... 250,000 261,245
------------
TELECOMMUNICATIONS -- 3.1%
United Telecommunications 9 1/2%, 4/1/2003 .. 350,000 389,439
------------
MISCELLANEOUS -- 2.2%
Tenneco Credit 9 5/8%, 8/15/2001 ............ 250,000 276,023
------------
Total Corporate Bonds (Cost $2,435,825) ..... 2,433,041
------------
COMMON STOCKS -- 18.5%
BANKING AND FINANCE--2.2%
National City ............................... 7,866 shs. 276,293
------------
ELECTRIC AND GAS UTILITIES -- 5.5%
AGL Resources ............................... 6,000 113,250
Central and South West ...................... 1,900 55,100
CINergy ..................................... 9,718 310,976
Entergy ..................................... 2,600 73,775
FPL Group ................................... 3,000 138,000
------------
691,101
------------
FOOD -- 3.0%
ConAgra ..................................... 8,141 369,398
------------
INSURANCE -- 0.6%
GCR Holdings ................................ 3,000 79,125
------------
RETAILING -- 0.3%
Kmart ....................................... 3,200 39,600
------------
STEEL -- 0.9%
Inland Steel Industries ..................... 5,406 106,093
------------
TRANSPORTATION -- 2.1%
Consolidated Freightways .................... 10,000 211,250
NFC ......................................... 20,000 57,405
------------
268,655
------------
- ----------
See notes to financial statements.
-- P-36 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
June 30, 1996
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Shares or
Principal
Amount Value
--------- -----
UTILITIES/TELECOMMUNICATIONS -- 3.9%
Bell Atlantic ............................... 4,000 shs. $ 255,000
GTE ......................................... 3,000 134,250
Network Equipment Technologies .............. 4,857 103,211
------------
492,461
------------
Total Common Stocks (Cost $1,864,891) ....... 2,322,726
------------
U.S. GOVERNMENT SECURITIES -- 8.1%
U.S. Treasury Notes 7 3/4%, 12/31/1999 ...... $ 500,000 521,250
U.S. Treasury Notes 6 1/2%, 5/15/2005 ....... 500,000 493,125
------------
Total U.S. Government Securities
(Cost $1,047,200) ......................... 1,014,375
------------
REPURCHASE AGREEMENTS -- 9.5% (Cost $1,200,000)
HSBC Securities, Inc. 4 1/2%, dated 6/26/1996,
maturing 7/3/1996 collateralized by:
$1,125,000 U.S. Treasury Notes
8 3/4%, 11/15/2008, with a fair market
value of $1,246,274 ..................... 1,200,000 1,200,000
------------
Total Investments-- 100.6% (Cost $12,112,877) 12,652,076
Other Assets Less Liabilities-- (0.6)% ...... (75,198)
------------
Net Assets-- 100.0% ......................... $ 12,576,878
============
- ----------
See notes to financial statements.
-- P-37 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Seligman Cash Common Communications
Capital Management Stock and Information
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common Stocks .............................. $ 10,687,841 $ -- $ 30,251,536 $ 37,383,094
Convertible Securities ..................... -- -- 333,438 --
U.S. Government Securities
and Agencies ........................... -- 3,664,761 -- --
Corporate Bonds ............................ -- -- -- --
Asset-Backed Securities .................... -- -- -- --
Repurchase Agreements ...................... 1,575,000 -- 3,600,000 13,600,000
Certificates of Deposit .................... -- -- -- --
Commercial Paper ........................... -- 4,737,645 -- --
Fixed Time Deposits ........................ -- 450,000 -- 275,000
Bank Notes ................................. -- 300,020 -- --
------------ ------------ ------------ ------------
Total Investments .......................... 12,262,841 9,152,426 34,184,974 51,258,094
Cash ....................................... 166,525 8,428 114,901 3,947
Receivable from associated companies ....... 42,440 -- -- --
Interest and dividends receivable .......... 3,810 1,579 47,590 15,186
Receivable for securities sold ............. -- -- 32,390 --
Receivable for Capital Stock sold .......... -- -- -- 756
Unrealized appreciation on foreign curren-
cies and forward currency contracts .... -- -- -- --
Other ...................................... -- -- -- --
------------ ------------ ------------ ------------
Total Assets ............................... 12,475,616 9,162,433 34,379,855 51,277,983
------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ........... 44,625 -- 24,000 1,657,669
Payable for Capital Stock repurchased ...... 30,786 54 974,828 --
Payable to custodian ....................... -- -- -- --
Unrealized depreciation on foreign curren-
cies and forward currency contracts .... -- -- -- --
Accrued expenses, taxes, and other ......... 18,623 12,836 30,969 57,143
------------ ------------ ------------ ------------
Total Liabilities .......................... 94,034 12,890 1,029,797 1,714,812
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 12,381,582 $ 9,149,543 $ 33,350,058 $ 49,563,171
============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ...................... $ 729 $ 9,150 $ 1,934 $ 3,794
Additional paid-in capital ................. 9,532,188 9,140,791 22,938,301 54,896,875
Undistributed/accumulated net
investment income (loss) ............... 10,354 -- 323,910 (54,370)
Undistributed/accumulated net
realized gain (loss) .................. 656,998 (398) 2,592,795 (1,857,214)
Net unrealized appreciation
(depreciation) of investments .......... 2,181,313 -- 7,493,118 (3,425,914)
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts ............. -- -- -- --
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 12,381,582 $ 9,149,543 $ 33,350,058 $ 49,563,171
============ ============ ============ ============
Shares of Capital Stock
($.001 par value) outstanding ........... 728,503 9,149,941 1,933,693 3,794,455
============ ============ ============ ============
Net Asset Value per share .................. $ 17.00 $ 1.00 $ 17.25 $ 13.06
============ ============ ============ ============
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman
Seligman Seligman Henderson
Fixed Income Seligman Henderson Global Growth
Securities Frontier Global Opportunities
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common Stocks .............................. $ -- $ 21,372,209 $ 5,557,902 $ 239,685
Convertible Securities ..................... -- -- -- --
U.S. Government Securities
and Agencies ........................... 2,243,869 -- -- --
Corporate Bonds ............................ 1,277,880 -- -- --
Asset-Backed Securities .................... 200,140 -- -- --
Repurchase Agreements ...................... -- 2,150,000 -- --
Certificates of Deposit .................... -- -- -- --
Commercial Paper ........................... -- -- -- --
Fixed Time Deposits ........................ 555,000 -- -- --
Bank Notes ................................. -- -- -- --
------------ ------------ ------------ ------------
Total Investments .......................... 4,276,889 23,522,209 5,557,902 239,685
Cash ....................................... 22,612 -- 210,234 17,014
Receivable from associated companies ....... -- -- 1,096 2,579
Interest and dividends receivable .......... 56,190 2,915 22,827 16
Receivable for securities sold ............. 216,419 21,932 -- --
Receivable for Capital Stock sold .......... -- -- -- --
Unrealized appreciation on foreign curren-
cies and forward currency contracts .... -- -- 23,901 --
Other ...................................... -- -- -- 2,000
------------ ------------ ------------ ------------
Total Assets ............................... 4,572,110 23,547,056 5,815,960 261,294
------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ........... 207,095 558,262 97,595 --
Payable for Capital Stock repurchased ...... 5,577 2,335 -- --
Payable to custodian ....................... -- 194,015 -- --
Unrealized depreciation on foreign curren-
cies and forward currency contracts .... -- -- 2,382 --
Accrued expenses, taxes, and other ......... 14,265 29,300 18,962 2,249
------------ ------------ ------------ ------------
Total Liabilities .......................... 226,937 783,912 118,939 2,249
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 4,345,173 $ 22,763,144 $ 5,697,021 $ 259,045
============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ...................... $ 432 $ 1,387 $ 436 $ 26
Additional paid-in capital ................. 4,249,308 19,138,835 5,174,329 258,599
Undistributed/accumulated net
investment income (loss) ............... 118,583 (35,065) 60,517 331
Undistributed/accumulated net
realized gain (loss) .................. (18,801) 2,890,226 38,536 --
Net unrealized appreciation
(depreciation) of investments .......... (4,349) 767,761 549,438 774
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts ............. -- -- (126,235) (685)
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 4,345,173 $ 22,763,144 $ 5,697,021 $ 259,045
============ ============ ============ ============
Shares of Capital Stock
($.001 par value) outstanding ........... 432,210 1,387,195 436,277 25,867
============ ============ ============ ============
Net Asset Value per share .................. $ 10.05 $ 16.41 $ 13.06 $ 10.01
============ ============ ============ ============
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman
Henderson Henderson Seligman
Global Smaller Global High-Yield Seligman
Companies Technology Bond Income
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common Stocks .............................. $ 10,779,296 $ 357,030 $ -- $ 2,322,726
Convertible Securities ..................... -- -- 107,750 5,681,934
U.S. Government Securities
and Agencies ........................... -- -- -- 1,014,375
Corporate Bonds ............................ -- -- 7,068,438 2,433,041
Asset-Backed Securities .................... -- -- -- --
Repurchase Agreements ...................... -- -- -- 1,200,000
Certificates of Deposit .................... -- -- -- --
Commercial Paper ........................... -- -- -- --
Fixed Time Deposits ........................ -- 150,000 250,000 --
Bank Notes ................................. -- -- -- --
------------ ------------ ------------ ------------
Total Investments .......................... 10,779,296 507,030 7,426,188 12,652,076
Cash ....................................... 815,129 -- -- 63,081
Receivable from associated companies ....... 2,245 2,823 -- --
Interest and dividends receivable .......... 12,745 104 144,993 156,397
Receivable for securities sold ............. 83,571 -- 381,346 --
Receivable for Capital Stock sold .......... -- -- -- --
Unrealized appreciation on foreign curren-
cies and forward currency contracts .... 18,714 -- -- --
Other ...................................... -- 2,000 -- --
------------ ------------ ------------ ------------
Total Assets ............................... 11,711,700 511,957 7,952,527 12,871,554
------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ........... 254,278 54,052 614,617 202,176
Payable for Capital Stock repurchased ...... -- -- -- 73,290
Payable to custodian ....................... -- 26,596 691,605 --
Unrealized depreciation on foreign curren-
cies and forward currency contracts .... 718 134 -- --
Accrued expenses, taxes, and other ......... 25,482 2,611 14,271 19,210
------------ ------------ ------------ ------------
Total Liabilities .......................... 280,478 83,393 1,320,493 294,676
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 11,431,222 $ 428,564 $ 6,632,034 $ 12,576,878
============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ...................... $ 816 $ 43 $ 598 $ 1,162
Additional paid-in capital ................. 9,942,298 432,871 6,327,289 11,783,443
Undistributed/accumulated net
investment income (loss) ............... 49,912 (47) 264,139 332,884
Undistributed/accumulated net
realized gain (loss) .................. 682,863 (138) 15,916 (79,816)
Net unrealized appreciation
(depreciation) of investments .......... 868,460 (4,410) 24,092 535,729
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts ............. (113,127) 245 -- 3,476
------------ ------------ ------------ ------------
NET ASSETS ................................. $ 11,431,222 $ 428,564 $ 6,632,034 $ 12,576,878
============ ============ ============ ============
Shares of Capital Stock
($.001 par value) outstanding ........... 816,026 43,481 598,193 1,161,682
============ ============ ============ ============
Net Asset Value per share .................. $ 14.01 $ 9.86 $ 11.09 $ 10.83
============ ============ ============ ============
</TABLE>
- ----------
See notes to financial statements.
-- P-38 & P-39 --
<PAGE>
<TABLE>
Seligman Portfolios, Inc.
- -----------------------------------------------------------------------------------------------------
Statements of Operations (unaudited) For the six months ended June 30, 1996
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Seligman Seligman Seligman
Seligman Cash Common Communications
Capital Management Stock and Information
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Dividends* ............................ $ 25,593 $ -- $ 302,649 $ 14,830
Interest .............................. 20,492 233,380 101,465 132,108
----------- ----------- ----------- -----------
Total investment income ............... 46,085 233,380 404,114 146,938
----------- ----------- ----------- -----------
Expenses:
Management fee ........................ 21,576 17,543 63,319 168,455
Auditing fee .......................... 5,367 4,717 10,067 13,267
Legal fee ............................. 1,986 1,986 1,986 1,986
Registration .......................... 1,649 2,655 719 13,073
Directors' fees and expenses .......... 1,079 1,079 1,079 1,061
Shareholder reports and
communications ..................... 659 659 659 637
Custody and related services .......... 200 400 1,397 1,500
Miscellaneous ......................... 635 563 3,599 766
----------- ----------- ----------- -----------
Total expenses before
reimbursement ...................... 33,151 29,602 82,825 200,745
Reimbursement of expenses ............. (798) (29,602) -- --
----------- ----------- ----------- -----------
Total expenses after
reimbursement ...................... 32,353 -- 82,825 200,745
----------- ----------- ----------- -----------
Net investment income (loss) .......... 13,732 233,380 321,289 (53,807)
----------- ----------- ----------- -----------
Netrealized and unrealized gain (loss) on investments and foreign currency
transactions:
Net realized gain (loss) on investments 652,420 -- 2,429,929 (1,857,214)
Net realized gain (loss) from foreign
currency transactions .............. -- -- (56,144) --
Net change in unrealized appreciation/
depreciation of investments ........ 740,858 -- 748,693 413,174
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies and forward
currency contracts ................. -- -- 55,242 --
----------- ----------- ----------- -----------
Net gain (loss) on investments
and foreign currency
transactions ....................... 1,393,278 -- 3,177,720 (1,444,040)
----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ............. $ 1,407,010 $ 233,380 $ 3,499,009 $(1,497,847)
=========== =========== =========== ===========
- ----------
* Net of foreign tax withheld as follows: $ 208 $ -- $ 1,371 $ 450
**For the period May 1, 1996, (commencement of operations) to June 30, 1996.
See notes to financial statements.
</TABLE>
Seligman Portfolios, Inc.
<TABLE>
- -----------------------------------------------------------------------------------------------------
Statements of Operations (unaudited) (continued) For the six months ended June 30, 1996
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Seligman
Seligman Seligman Henderson
Fixed Income Seligman Henderson Global Growth
Securities Frontier Global Opportunities
Portfolio Portfolio Portfolio Portfolio**
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Dividends* ............................ $ -- $ 13,462 $ 58,305 $ 16
Interest .............................. 134,691 33,513 10,380 364
----------- ----------- ----------- -----------
Total investment income ............... 134,691 46,975 68,685 380
----------- ----------- ----------- -----------
Expenses:
Management fee ........................ 8,486 64,328 25,718 153
Auditing fee .......................... 3,667 7,517 3,967 1,108
Legal fee ............................. 1,986 1,986 1,986 266
Registration .......................... 893 5,885 1,507 320
Directors' fees and expenses .......... 1,079 1,061 1,061 290
Shareholder reports and
communications ..................... 659 637 637 110
Custody and related services .......... 200 200 26,832 200
Miscellaneous ......................... 999 614 6,667 334
----------- ----------- ----------- -----------
Total expenses before
reimbursement ...................... 17,969 82,228 68,375 2,781
Reimbursement of expenses ............. (5,239) (751) (32,376) (2,579)
----------- ----------- ----------- -----------
Total expenses after
reimbursement ...................... 12,730 81,477 35,999 202
----------- ----------- ----------- -----------
Net investment income (loss) .......... 121,961 (34,502) 32,686 178
----------- ----------- ----------- -----------
Netrealized and unrealized gain (loss) on investments and foreign currency
transactions:
Net realized gain (loss) on investments 78,572 2,884,065 48,572 --
Net realized gain (loss) from foreign
currency transactions .............. -- -- 19,712 153
Net change in unrealized appreciation/
depreciation of investments ........ (359,561) 277,709 274,801 774
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies and forward
currency contracts ................. -- -- (105,831) (685)
----------- ----------- ----------- -----------
Net gain (loss) on investments
and foreign currency
transactions ....................... (280,989) 3,161,774 237,254 242
----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ............. $ (159,028) $ 3,127,272 $ 269,940 $ 420
=========== =========== =========== ===========
- ----------
* Net of foreign tax withheld as follows: $ -- $ -- $ 6,554 $ --
**For the period May 1, 1996, (commencement of operations) to June 30, 1996.
See notes to financial statements.
</TABLE>
Seligman Portfolios, Inc.
<TABLE>
- -----------------------------------------------------------------------------------------------------
Statements of Operations (unaudited) (continued) For the six months ended June 30, 1996
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Seligman Seligman
Henderson Henderson Seligman
Global Smaller Global High-Yield Seligman
Companies Technology Bond Income
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Dividends* ............................ $ 65,745 $ 60 $ -- $ 121,123
Interest .............................. 18,099 726 284,281 251,709
----------- ----------- ----------- -----------
Total investment income ............... 83,844 786 284,281 372,832
----------- ----------- ----------- -----------
Expenses:
Management fee ........................ 37,452 232 14,100 24,542
Auditing fee .......................... 5,117 1,133 4,367 5,467
Legal fee ............................. 1,986 266 1,986 1,986
Registration .......................... 3,634 378 3,379 418
Directors' fees and expenses .......... 1,061 290 1,061 1,079
Shareholder reports and
communications ..................... 637 110 637 659
Custody and related services .......... 24,224 400 250 800
Miscellaneous ......................... 8,838 334 3,102 1,593
----------- ----------- ----------- -----------
Total expenses before
reimbursement ...................... 82,949 3,143 28,882 36,544
Reimbursement of expenses ............. (30,519) (2,823) (9,150) --
----------- ----------- ----------- -----------
Total expenses after
reimbursement ...................... 52,430 320 19,732 36,544
----------- ----------- ----------- -----------
Net investment income (loss) .......... 31,414 466 264,549 336,288
----------- ----------- ----------- -----------
Netrealized and unrealized gain (loss) on investments and foreign currency
transactions:
Net realized gain (loss) on investments 694,062 (138) 15,916 (79,816)
Net realized gain (loss) from foreign
currency transactions .............. 7,862 (513) -- (26)
Net change in unrealized appreciation/
depreciation of investments ........ 668,067 (4,410) (33,296) 46,319
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies and forward
currency contracts ................. (77,359) 245 -- --
----------- ----------- ----------- -----------
Net gain (loss) on investments
and foreign currency
transactions ....................... 1,292,632 (4,816) (17,380) (33,523)
----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ............. $ 1,324,046 $ (4,350) $ 247,169 $ 302,765
=========== =========== =========== ===========
- ----------
* Net of foreign tax withheld as follows: $ 9,290 $ 5 $ -- $ 294
**For the period May 1, 1996, (commencement of operations) to June 30, 1996.
See notes to financial statements.
</TABLE>
-- P-40 & P-41 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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
6/30/96 12/31/95 6/30/96 12/31/95 6/30/96 12/31/95
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) .... $ 13,732 $ 23,072 $ 233,380 $ 251,624 $ 321,289 $ 570,657
Net realized gain (loss) on
investments .................. 652,420 673,773 -- (4) 2,429,929 3,074,117
Net realized gain (loss) from
foreign currency transactions -- -- -- -- (56,144) (85)
Net change in unrealized
appreciation/depreciation
of investments ............... 740,858 996,837 -- -- 748,693 2,044,468
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts ........... -- -- -- -- 55,242 (55,202)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations .............. 1,407,010 1,693,682 233,380 251,620 3,499,009 5,633,955
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income ........... -- (26,627) (233,380) (251,624) -- (564,862)
Realized gain on investments .... -- (666,241) -- -- -- (2,855,419)
------------ ------------ ------------ ------------ ------------ ------------
Decrease in net assets from
distributions ................ -- (692,868) (233,380) (251,624) -- (3,420,281)
------------ ------------ ------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares 3,127,993 3,644,132 6,869,464 8,777,333 5,900,574 12,083,995
Investment of dividends ......... -- 26,627 233,380 251,624 -- 564,862
Shares issued in payment of gain
distributions ................ -- 666,241 -- -- -- 2,855,419
------------ ------------ ------------ ------------ ------------ ------------
Total ........................... 3,127,993 4,337,000 7,102,844 9,028,957 5,900,574 15,504,276
------------ ------------ ------------ ------------ ------------ ------------
Cost of shares repurchased ...... (1,446,937) (1,986,672) (5,752,812) (4,459,283) (4,885,570) (9,049,478)
------------ ------------ ------------ ------------ ------------ ------------
Increase in net assets from
capital share transactions ... 1,681,056 2,350,328 1,350,032 4,569,674 1,015,004 6,454,798
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets 3,088,066 3,351,142 1,350,032 4,569,670 4,514,013 8,668,472
Net Assets:
Beginning of period ............. 9,293,516 5,942,374 7,799,511 3,229,841 28,836,045 20,167,573
------------ ------------ ------------ ------------ ------------ ------------
End of period ................... $ 12,381,582 $ 9,293,516 $ 9,149,543 $ 7,799,511 $ 33,350,058 $ 28,836,045
============ ============ ============ ============ ============ ============
- ----------
* Commencement of operations.
See notes to financial statements.
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman
Communications and Fixed Income Seligman
Information Portfolio Securities Portfolio Frontier Portfolio
--------------------------- -------------------------- ---------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/96 12/31/95 6/30/96 12/31/95 6/30/96 12/31/95
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) .... $ (53,807) $ (146,275) $ 121,961 $ 237,456 $ (34,502) $ (21,483)
Net realized gain (loss) on
investments .................. (1,857,214) 2,629,030 78,572 (16,342) 2,884,065 489,661
Net realized gain (loss) from
foreign currency transactions -- -- -- -- -- --
Net change in unrealized
appreciation/depreciation
of investments ............... 413,174 (3,857,599) (359,561) 449,551 277,709 481,517
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts ........... -- -- -- -- -- --
----------- ----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets
from operations .............. (1,497,847) (1,374,844) (159,028) 670,665 3,127,272 949,695
----------- ----------- ---------- ---------- ----------- -----------
Distributions to shareholders:
Net investment income ........... -- -- -- (239,920) -- --
Realized gain on investments .... -- (2,505,145) -- -- -- (463,105)
----------- ----------- ---------- ---------- ----------- -----------
Decrease in net assets from
distributions ................ -- (2,505,145) -- (239,920) -- (463,105)
----------- ----------- ---------- ---------- ----------- -----------
Capital share transactions:
Net proceeds from sale of shares 16,852,917 40,177,251 858,597 1,663,791 8,726,955 11,465,250
Investment of dividends ......... -- -- -- 239,920 -- --
Shares issued in payment of gain
distributions ................ -- 2,505,145 -- -- -- 463,105
----------- ----------- ---------- ---------- ----------- -----------
Total ........................... 16,852,917 42,682,396 858,597 1,903,711 8,726,955 11,928,355
----------- ----------- ---------- ---------- ----------- -----------
Cost of shares repurchased ...... (4,233,992) (854,935) (850,944) (1,444,282) (1,567,194) (107,785)
----------- ----------- ---------- ---------- ----------- -----------
Increase in net assets from
capital share transactions ... 12,618,925 41,827,461 7,653 459,429 7,159,761 11,820,570
----------- ----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets 11,121,078 37,947,472 (151,375) 890,174 10,287,033 12,307,160
Net Assets:
Beginning of period ............. 38,442,093 494,621 4,496,548 3,606,374 12,476,111 168,951
----------- ----------- ---------- ---------- ----------- -----------
End of period ................... $49,563,171 $38,442,093 $4,345,173 $4,496,548 $22,763,144 $12,476,111
=========== =========== ========== ========== =========== ===========
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman
Seligman Henderson
Henderson Global Growth
Global Portfolio Opportunities Portfolio
-------------------------- -----------------------
Six Months Year 5/1/96*
Ended Ended to
6/30/96 12/31/95 6/30/96
----------- ----------- -----------
<S> <C> <C> <C>
Operations:
Net investment income (loss) .... $ 32,686 $ 25,610 $ 178
Net realized gain (loss) on
investments .................. 48,572 (39,978) --
Net realized gain (loss) from
foreign currency transactions 19,712 82,120 153
Net change in unrealized
appreciation/depreciation
of investments ............... 274,801 277,417 774
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts ........... (105,831) (48,118) (685)
----------- ----------- -----------
Increase (decrease) in net assets
from operations .............. 269,940 297,051 420
----------- ----------- -----------
Distributions to shareholders:
Net investment income ........... -- (48,883) --
Realized gain on investments .... -- (27,517) --
----------- ----------- -----------
Decrease in net assets from
distributions ................ -- (76,400) --
----------- ----------- -----------
Capital share transactions:
Net proceeds from sale of shares 2,253,378 2,562,936 266,119
Investment of dividends ......... -- 48,883 --
Shares issued in payment of gain
distributions ................ -- 27,517 --
----------- ----------- -----------
Total ........................... 2,253,378 2,639,336 266,119
----------- ----------- -----------
Cost of shares repurchased ...... (1,009,526) (453,063) (7,494)
----------- ----------- -----------
Increase in net assets from
capital share transactions ... 1,243,852 2,186,273 258,625
----------- ----------- -----------
Increase (decrease) in net assets 1,513,792 2,406,924 259,045
Net Assets:
Beginning of period ............. 4,183,229 1,776,305 --
----------- ----------- -----------
End of period ................... $ 5,697,021 $ 4,183,229 $ 259,045
=========== =========== ===========
</TABLE>
- ----------
* Commencement of operations.
See notes to financial statements.
-- P-42 & P43 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman
Seligman Henderson
Henderson Global
Global Smaller Technology
Companies Portfolio Portfolio
---------------------------- ------------
Six Months Year 5/1/96*
Ended Ended to
6/30/96 12/31/95 6/30/96
------------ ------------ ------------
<S> <C> <C> <C>
Operations:
Net investment income ............ $ 31,414 $ 11,002 $ 466
Net realized gain (loss) on
investments ................... 694,062 147,181 (138)
Net realized gain (loss) from
foreign currency transactions . 7,862 4,162 (513)
Net change in unrealized
appreciation/depreciation
of investments ................ 668,067 197,114 (4,410)
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts ............ (77,359) (36,341) 245
------------ ------------ ------------
Increase (decrease) in net assets
from operations ............... 1,324,046 323,118 (4,350)
------------ ------------ ------------
Distributions to shareholders:
Net investment income ............ -- (20,531) --
Realized gain on investments ..... -- (148,062) --
------------ ------------ ------------
Decrease in net assets from
distributions ................. -- (168,593) --
------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares . 5,868,737 4,665,264 461,408
Investment of dividends .......... -- 20,531 --
Shares issued in payment of gain
distributions ................. -- 148,062 --
------------ ------------ ------------
Total ............................ 5,868,737 4,833,857 461,408
------------ ------------ ------------
Cost of shares repurchased ....... (598,177) (283,276) (28,494)
------------ ------------ ------------
Increase (decrease)in net assets
from capital share transactions 5,270,560 4,550,581 432,914
------------ ------------ ------------
Increase (decrease) in net assets 6,594,606 4,705,106 428,564
Net Assets:
Beginning of period .............. 4,836,616 131,510 --
------------ ------------ ------------
End of period .................... $ 11,431,222 $ 4,836,616 $ 428,564
============ ============ ============
</TABLE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman
High-Yield Seligman
Bond Portfolio Income Portfolio
---------------------------- -------------------------------
Six Months 5/1/95* Six Months Year
Ended to Ended Ended
6/30/96 12/31/95 6/30/96 12/31/95
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ............ $ 264,549 $ 58,661 $ 336,288 $ 635,679
Net realized gain (loss) on
investments ................... 15,916 4,799 (79,816) 639,249
Net realized gain (loss) from
foreign currency transactions . -- -- (26) (43)
Net change in unrealized
appreciation/depreciation
of investments ................ (33,296) 57,388 46,319 591,277
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts ............ -- -- -- 3,496
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations ............... 247,169 120,848 302,765 1,869,658
------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income ............ -- (60,233) -- (644,348)
Realized gain on investments ..... -- (4,951) -- (636,880)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions ................. -- (65,184) -- (1,281,228)
------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares . 5,232,785 3,188,047 2,939,704 5,410,208
Investment of dividends .......... -- 60,233 -- 644,348
Shares issued in payment of gain
distributions ................. -- 4,951 -- 636,880
------------ ------------ ------------ ------------
Total ............................ 5,232,785 3,253,231 2,939,704 6,691,436
------------ ------------ ------------ ------------
Cost of shares repurchased ....... (1,857,342) (299,473) (3,285,071) (4,710,663)
------------ ------------ ------------ ------------
Increase (decrease)in net assets
from capital share transactions 3,375,443 2,953,758 (345,367) 1,980,773
------------ ------------ ------------ ------------
Increase (decrease) in net assets 3,622,612 3,009,422 (42,602) 2,569,203
Net Assets:
Beginning of period .............. 3,009,422 -- 12,619,480 10,050,277
------------ ------------ ------------ ------------
End of period .................... $ 6,632,034 $ 3,009,422 $ 12,576,878 $ 12,619,480
============ ============ ============ ============
</TABLE>
- ----------
* Commencement of operations.
See notes to financial statements.
-- P-44 --
<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 twelve 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 Growth Opportunities Portfolio" ("Global
Growth Opportunities Portfolio"), "Seligman Henderson Global Smaller Companies
Portfolio" ("Global Smaller Companies Portfolio"),"Seligman Henderson Global
Technology Portfolio" ("Global Technology 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"), which is offered by Canada Life
Insurance Company of America ("CLICA"), Canada Life of New York Variable Annuity
Account 2 ("CLNYVA-2") which is offered by Canada Life Insurance Company of New
York ("CLNY"), and Canada Life of America Annuity Account 3 ("CLVA-3"), which is
offered by Canada Life Insurance Company of America. CLVA-2 and CLNYVA-2 are
registered as unit investment trusts under the Investment Company Act of 1940,
as amended (the "1940 Act") and fund variable annuity contracts (the "CLVA-2
Contracts") issued by CLICA and CLNY and distributed by Seligman Financial
Services, Inc. CLVA-3 is not registered or regulated as a unit investment trust
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 CLICA 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 CLICA or its affiliates ("Canada Life Separate Accounts"). Shares
of the Capital, Cash Management,Common Stock, Fixed Income Securities and Income
Portfolios are also provided as the investment medium for Seligman Mutual
Benefit Plan (the "Mutual Benefit Plan"), a separate account of MBLLife
Assurance Corporation ("MBL Life"). Significant accounting policies followed,
all in conformity with generally accepted accounting principles, are given
below:
a. Investments in US Government securities and agencies, 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, Global Growth Opportunities Portfolio,
Global Smaller Companies Portfolio, and Global Technology 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 US dollar-denominated
American Depository Receipts ("ADRs"), American Depository Shares ("ADSs"),
European Depository Receipts ("EDRs"), Global Depository Receipts ("GDRs"),
and Global Depository Shares ("GDSs"). 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,GDRs,and GDSs 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 US dollars. Foreign
currency amounts are translated into US 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 US 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 US 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.
-- P-45 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
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.
c. The Global Portfolio, Global Growth Opportunities Portfolio, Global
Smaller Companies Portfolio and Global Technology 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. 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 Insurance Company in Rehabilitation("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 MBL Life
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.
-- P-46 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Purchases and sales of portfolio securities, excluding US Government
obligations and short-term investments, for the six months ended June 30, 1996,
were as follows:
<TABLE>
<CAPTION>
Portfolio Purchases Sales
-------- --------- -----
<S> <C> <C>
Capital $3,954,066 $3,512,311
Common Stock 9,829,944 7,039,953
Communications
and Information 46,720,470 45,419,992
Fixed Income Securities 1,731,845 1,163,656
Frontier 18,237,078 11,846,433
Global 2,342,296 929,920
Global Growth Opportunities 239,596 --
Global Smaller Companies 7,994,841 2,924,859
Global Technology 370,127 8,812
High-Yield Bond 7,957,195 3,609,264
Income 1,238,071 605,336
</TABLE>
For the six months ended June 30, 1996, purchases and sales of US Government
obligations were $3,493,906 and $3,737,919, respectively, for the Fixed Income
Securities Portfolio.
Identified cost of investments sold is used for both financial statement and
federal income tax purposes.
At June 30, 1996, 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 transactions, were as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized
Portfolio Appreciation Depreciation
-------- ------------ -----------
<S> <C> <C>
Capital $2,729,822 $548,509
Common Stock 7,756,531 263,413
Communications
and Information 1,624,757 5,050,673
Fixed Income Securities 44,815 49,164
Frontier 2,111,595 1,343,834
Global 543,877 142,127
Global Growth Opportunities 3,974 3,885
Global Smaller Companies 1,134,652 397,303
Global Technology 7,776 11,923
High-Yield Bond 103,250 79,158
Income 961,013 421,814
</TABLE>
At December 31, 1995, the Cash Management Portfolioandthe Fixed Income
Securities Portfolio had net capital loss carryforwards of $398 and $97,373,
respectively, which are available for offset against future taxable net gains.
These net capital loss carryforwards will expire in varying amounts through
2003.
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides orarrangesforthe 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 or by Seligman Henderson Co. (the"Subadviser"), a 50%-owned affiliate of
the Manager. The Manager's fee is calculated daily and payable monthly, equal to
0.40%, on an annual basis, of Capital, Cash Management, Common Stock, Fixed
Income Securities, and Income Portfolios' daily net assets; equal to 0.75%, on
an annual basis, of Communications and Information and Frontier Portfolios'
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, the Global
Growth Opportunities, the Global Smaller Companies and the Global Technology
Portfolios is calculated daily and payable monthly, equal to an annual rate of
1.00% of the daily net assets of each Portfolio, of which 0.90% is paid to the
Subadviser. The Manager 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 theCash Management, Global, Global Growth
Opportunities, Global Smaller Companies, and Global Technology Portfolios). The
Manager, at its discretion, has elected to waive all of its fee for, and
reimburse all of the expenses of, the Cash
-- P-47 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
Management Portfolio until such time as the Manager determines. The Manager and
Subadviser have agreed to reimburse expenses, other than management fee, which
exceed 0.40% per annum of the average daily net assets of theGlobal, Global
Growth Opportunities, Global Smaller Companies and Global Technology Portfolios.
For the six months ended June30, 1996, the Manager reimbursed expenses and/or
waived fees of $798, $29,602, $5,239, $751, and $9,150, for the Capital, Cash
Management, Fixed Income Securities, Frontier, and High-Yield Bond Portfolios,
respectively. For the same period, the Manager and Subadviser waived all of
their fees and the Subadviser reimbursed expenses totalling $32,376 for the
Global Portfolio; and for the Global Smaller Companies Portfolio, the Manager
waived all its fee and the Subadviser waived a portion of its fee totalling
$30,519. For the period from May 1, 1996 (commencement of operations) to June
30, 1996, the Manager and Subadviser waived their fees and the Subadviser
reimbursed expenses totalling $2,579 and $2,823, respectively, for the Global
Growth Opportunities Portfolio and the Global Technology Portfolio,
respectively.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the CLVA-2 Contracts and an affiliate of the Manager, received
concessions of $213,551 from Canada Life Insurance Company of America and $5,227
from Canada Life Insurance Company of New York, after commissions paid to
dealers.
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 cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1996, 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, 1996, the Fund had outstanding foreign currencies and forward
currency contracts to purchase or sell foreign currencies as follows:
<TABLE>
<CAPTION>
Unrealized
Foreign In Exchange Settlement Appreciation
Contract Currency for US $ Date US $ Value (Depreciation)
---------- ----------- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
GLOBAL PORTFOLIO
Purchases:
French Francs 9,292 1,800 7/1/96 1,803 $ 3
Japanese Yen 1,633,706 14,876 7/2/96 14,902 26
Japanese Yen 18,309,425 170,000 8/13/96 167,654 (2,146)
-------
(2,117)
-------
Sales:
British Pounds 8,665 13,361 7/1/96 13,443 (82)
Swiss Francs 8,062 6,438 7/1/96 6,431 7
French Francs 927,038 180,000 8/8/96 180,154 (154)
German Deutschemarks 182,292 120,000 8/8/96 119,866 134
Japanese Yen 46,497,375 450,000 8/13/96 426,269 23,731
-------
23,636
-------
$21,519
=======
GLOBAL SMALLER COMPANIES PORTFOLIO
Purchases:
British Pounds 1,981 3,054 7/1/96 3,073 $ 19
Japanese Yen 4,751,017 43,262 7/2/96 43,339 77
Japanese Yen 5,385,125 50,000 8/13/96 49,368 (632)
-------
(536)
-------
Sales:
Japanese Yen 1,224,228 11,204 7/1/96 11,167 37
French Francs 515,020 100,000 8/8/96 100,086 (86)
German Deutschemarks 167,101 110,000 8/8/96 109,877 123
Japanese Yen 36,164,625 350,000 8/13/96 331,542 18,458
-------
18,532
-------
$17,996
=======
GLOBAL TECHNOLOGY PORTFOLIO
Purchases:
German Deutschemarks 11,250 7,387 7/1/96 7,382 $ (5)
Japanese Yen 4,275,380 39,127 7/1/96 39,000 (127)
Swedish Kronor 50,925 7,673 7/1/96 7,671 (2)
-------
$ (134)
=======
</TABLE>
-- P-48 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. At June 30, 1996, there were 20,000,000 shares of Capital Stock authorized
for each of the Global Growth Opportunities and Global Technology Portfolios;
80,000,000 shares for the Capital and Fixed Income Securities Portfolios; and
100,000,000 shares for each of the Cash Management, Common Stock, Communications
and Information, Frontier, Global, Global Smaller Companies, High-Yield Bond,
and Income Portfolios, all at a par value of $.001 per share. Transactions in
shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
Cash Management Common Stock Communications and
Capital Portfolio Portfolio Portfolio Information Portfolio
--------------------- -------------------- --------------------- ------------------------
Six Months Year Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended Ended Ended
6/30/96 12/31/95 6/30/96 12/31/95 6/30/96 12/31/95 6/30/96 12/31/95
-------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sale of shares................... 193,728 249,315 6,869,464 8,777,333 358,435 774,737 1,265,322 2,671,618
Shares issued in payment of
dividends.................... -- 1,811 233,380 251,624 -- 36,751 -- --
Shares issued in payment
of gain distributions........ -- 45,323 -- -- -- 185,779 -- 187,370
------- ------- --------- --------- ------- ------- --------- ---------
Total............................ 193,728 296,449 7,102,844 9,028,957 358,435 997,267 1,265,322 2,858,988
------- ------- --------- --------- ------- ------- --------- ---------
Shares repurchased............... (88,519) (141,073) (5,752,812) (4,459,283) (292,825) (592,244) (318,889) (58,334)
------- ------- --------- --------- ------- ------- --------- ---------
Increase in shares............... 105,209 155,376 1,350,032 4,569,674 65,610 405,023 946,433 2,800,654
======= ======= ========= ========= ======= ======= ========= =========
<CAPTION>
Fixed Income Global Growth
Securities Portfolio Frontier Portfolio Global Portfolio Opportunities Portfolio
-------------------- ------------------- ---------------------- -----------------------
Six Months Year Six Months Year Six Months Year 5/1/96*
Ended Ended Ended Ended Ended Ended to
6/30/96 12/31/95 6/30/96 12/31/95 6/30/96 12/31/95 6/30/96
--------- ------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Sale of shares................... 85,681 163,349 571,581 877,490 176,702 214,972 26,616
Shares issued in payment
of dividends................. -- 23,069 -- -- -- 3,942 --
Shares issued in payment
of gain distributions........ -- -- -- 34,820 -- 2,219 --
-------- ------- -------- ------- ------- ------- --------
Total............................ 85,681 186,418 571,581 912,310 176,702 221,133 26,616
-------- ------- -------- ------- ------- ------- --------
Shares repurchased............... (84,224) (144,731) (104,320) (8,346) (78,110) (40,136) (749)
-------- ------- -------- ------- ------- ------- --------
Increase in shares............... 1,457 41,687 467,261 903,964 98,592 180,997 25,867
======== ======= ======== ======= ======= ======= ========
<CAPTION>
Global Smaller Global Technology High-Yield
Companies Portfolio Portfolio Bond Portfolio Income Portfolio
--------------------- ---------------- -------------------- -----------------------
Six Months Year 5/1/96* Six Months 5/1/95* Six Months Year
Ended Ended to Ended to Ended Ended
6/30/96 12/31/95 6/30/96 6/30/96 12/31/95 6/30/96 12/31/95
--------- --------- --------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Sale of shares................... 445,111 411,729 46,330 479,818 309,043 274,215 504,495
Shares issued in payment
of dividends................. -- 1,778 -- -- 5,742 -- 61,075
Shares issued in payment
of gain distributions........ -- 12,819 -- -- 472 -- 60,368
-------- ------- -------- ------- ------- ------- -------
Total............................ 445,111 426,326 46,330 479,818 315,257 274,215 625,938
-------- ------- -------- ------- ------- ------- -------
Shares repurchased............... (43,522) (24,643) (2,849) (168,313) (28,569) (307,017) (439,030)
-------- ------- -------- ------- ------- ------- -------
Increase (decrease) in shares.... 401,589 401,683 43,481 311,505 286,688 (32,802) 186,908
======== ======= ======== ======= ======= ======= =======
</TABLE>
-- P-49 --
- --------------
* Commencement of operations.
<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 amount.
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. Average commission rate paid represents the average commission paid
by the Portfolios to purchase or sell portfolio securities. It is determined by
dividing the total commission dollars paid by the number of shares purchased and
sold during the period for which commissions were paid. This rate is provided
for the period beginning January 1, 1996.
<TABLE>
<CAPTION>
Capital Portfolio
----------------------------------------------------------------------------
Six Months Year Ended December 31
Ended ----------------------------------------------------------------
6/30/96 1995 1994 1993 1992 1991
---------- ----------------------------------------------------------------
Per Share Operating Performance:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $ 14.910 $ 12.700 $ 14.950 $ 16.980 $ 17.740 $ 11.230
-------- -------- --------- ---------- ---------- ---------
Net investment income (loss) ................. 0.020 0.048 0.015 0.021 (0.022) 0.079
Net realized and unrealized gain (loss)
on investments .............................. 2.070 3.385 (0.699) 1.928 1.202 6.547
-------- -------- --------- ---------- ---------- ---------
Increase (decrease) from investment
operations .................................. 2.090 3.433 (0.684) 1.949 1.180 6.626
Dividends paid ............................... -- (0.047) (0.018) (0.021) -- (0.088)
Distributions from net realized gain ......... -- (1.176) (1.548) (3.958) (1.940) (0.028)
-------- -------- --------- ---------- ---------- ---------
Net increase (decrease) in net asset value 2.090 2.210 (2.250) (2.030) (0.760) 6.510
-------- -------- --------- ---------- ---------- ---------
Net asset value, end of period ............... $ 17.000 $ 14.910 $ 12.700 $ 14.950 $ 16.980 $ 17.740
======== ======== ========= ========== ========== =========
Total Return Based On Net Asset Value: ....... 14.02% 27.17% (4.59)% 11.65% 6.80% 59.05%
Ratios/Supplemental Data:
Expenses to average net assets ............... 0.60%+ 0.60% 0.60% 0.71% 0.91% 0.60%
Net investment income (loss) to average
net assets .................................. 0.25%+ 0.32% 0.10% 0.09% (0.14)% 0.56%
-------- -------- --------- ---------- ---------- ---------
Portfolio turnover ........................... 34.96% 122.20% 67.39% 65.30% 54.95% 31.44%
Average commission rate paid ................. $ 0.0536
Net assets, end of period (000's omitted) .... $ 12,382 $ 9,294 $ 5,942 $ 5,886 $ 5,497 $ 5,812
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ....... $ 0.019 $ 0.035 $ (0.036) $ (0.003) $ (0.035)
Ratios:
Expenses to average net assets ........... 0.61%+ 0.71% 0.96% 0.83% 1.37%
Net investment income (loss) to average
net assets ............................... 0.24%+ 0.21% (0.26)% (0.03)% (0.21)%
</TABLE>
<TABLE>
<CAPTION>
Cash Management Portfolio
----------------------------------------------------
Six Months Year Ended December 31
Ended ---------------------------------------
6/30/96 1995 1994 1993 1992 1991
---------- ---- ---- ---- ---- ----
<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 ......................... 0.026 0.055 0.040 0.030 0.035 0.056
Dividends paid ................................ (0.026) (0.055) (0.040) (0.030) (0.035) (0.056)
------ ------ ------ ------ ------ ------
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: ........ 2.68% 5.60% 4.03% 3.00% 3.53% 5.70%
Ratios/Supplemental Data:
Expenses to average net assets ................ -- -- -- -- -- --
Net investment income to average net assets ... 5.32%+ 5.48% 3.98% 2.96% 3.50% 5.49%
Net assets, end of period (000's omitted) ..... $9,150 $7,800 $3,230 $3,102 $4,230 $5,849
Without management fee waiver and
expense reimbursement:++
Net investment income per share ............... $0.023 $0.046 $0.025 $0.019 $0.025 $ 0.048
Ratios:
Expenses to average net assets ............. 0.68%+ 0.87% 1.48% 1.07% 0.97% 0.83%
Net investment income to average net assets 4.64%+ 4.61% 2.50% 1.89% 2.53% 4.66%
</TABLE>
- --------------
+ Annualized
++ The Manager, at its discretion, reimbursed expenses and/or waived
management fees for certain periods presented. See notes to financial
statements.
-- P-50 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Communications and
Common Stock Portfolio Information Portfolio
------------------------------------------------------- ----------------------------
Six Months Year Ended December 31 Six Months Year 10/11/94**
Ended -------------------------------------------- Ended Ended to
6/30/96 1995 1994 1993 1992 1991 6/30/96 12/31/95 12/31/94
-------- ---- ---- ---- ---- ---- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ..... $15.440 $13.780 $14.980 $15.600 $14.740 $11.580 $13.500 $10.440 $10.000
--------------------------------------------------------------------------------------
Net investment income (loss) ............. 0.166 0.349 0.365 0.392 0.346 0.362 (0.014) 0.000 (0.016)
Net realized and unrealized gain (loss)
on investments ......................... 1.644 3.400 (0.356) 1.479 1.445 3.459 (0.426) 4.015 0.456
--------------------------------------------------------------------------------------
Increase from investment operations ...... 1.810 3.749 0.009 1.871 1.791 3.821 (0.440 4.015 0.440
Dividends paid .......................... -- (0.345) (0.385) (0.394) (0.369) (0.355) -- -- --
Distributions from net realized gain .... -- (1.744) (0.824) (2.097) (0.562) (0.306) -- (0.955) --
--------------------------------------------------------------------------------------
Net increase (decrease) in net asset value 1.810 1.660 (1.200) (0.620) 0.860 3.160 (0.440) 3.060 0.440
--------------------------------------------------------------------------------------
Net asset value, end of period ........... $17.250 $15.440 $13.780 $14.980 $15.600 $14.740 $13.060 $13.500 $10.440
======================================================================================
Total Return Based On Net Asset Value .... 11.72% 27.28% 0.04% 11.94% 12.14% 33.16% (3.26)% 38.55% 4.40%
Ratios/Supplemental Data:
Expenses to average net assets ........... 0.52%+ 0.54% 0.60% 0.55% 0.56% 0.60% 0.89% 0.95% 0.95%+
Net investment income (loss) to
average net assets ..................... 2.03%+ 2.42% 2.45% 2.10% 2.21% 2.63% (0.24)%+ (0.89)% (0.95)%+
Portfolio turnover ....................... 24.94% 55.48% 15.29% 10.70% 12.57% 27.67% 113.32% 96.62% --
Average commission rate paid ............. $0.0537 $0.0537
Net assets, end of period (000's omitted) $33,350 $28,836 $20,168 $21,861 $24,987 $26,103 $49,563 $38,442 $ 495
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ... $0.361 $0.350 $(0.436)
Ratios:
Expenses to average net assets ......... 0.62% 0.71% 13.96%+
Net investment income (loss) to
average net assets ................... 2.43% 2.52% (13.96)%+
</TABLE>
<TABLE>
<CAPTION>
Fixed Income Securities Portfolio Frontier Portfolio
--------------------------------------------------------- --------------------------------
Six Months Year Ended December 31 Six Months Year 10/11/94**
Ended ---------------------------------------------- Ended Ended to
6/30/96 1995 1994 1993 1992 1991 6/30/96 12/31/95 12/31/94
------- ------ ------- ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period .. $10.440 $ 9.270 $10.110 $10.660 $10.990 $10.310 $13.560 $10.580 $10.000
------- ------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss) .......... 0.282 0.605 0.499 0.713 0.706 0.798 (0.025) (0.001) (0.012)
Net realized and unrealized gain (loss)
on investments ...................... (0.672) 1.171 (0.841) 0.142 (0.092) 0.699 2.875 3.512 0.592
------- ------- ------- ------- ------- ------- ------- ------- -------
Increase (decrease) from investment
operations .......................... (0.390) 1.776 (0.342) 0.855 0.614 1.497 2.850 3.511 0.580
Dividends paid -- (0.606) (0.498) (0.711) (0.772) (0.817) -- -- --
Distributions from net realized gain .. -- -- -- (0.694) (0.172) -- -- (0.531) --
------- ------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset
value ................................. (0.390) 1.170 (0.840) (0.550) (0.330) 0.680 2.850 2.980 0.580
------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period ........ $10.050 $10.440 $ 9.270 $10.110 $10.660 $10.990 $16.410 $13.560 $10.580
======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return Based On Net Asset Value: (3.74)% 19.18% (3.39)% 7.98% 5.60% 14.58% 21.02% 33.28% 5.80%
Ratios/Supplemental Data:
Expenses to average net assets ........ 0.60%+ 0.60% 0.60% 0.74% 1.00% 0.60% 0.95%+ 0.95% 0.95%+
Net investment income (loss) to
average net assets .................. 5.75%+ 6.22% 5.12% 5.41% 6.22% 7.30% (0.40)%+ (0.55)% (0.70)%+
Portfolio turnover .................... 135.65% 114.42% 237.23% 33.21% 23.40% 6.34% 73.62% 106.48% --
Average commission rate paid $ 0.0562
Net assets, end of period (000's omitted) $ 4,345 $ 4,497 3,606 $ 3,775 $ 4,750 $ 5,369 $ 22,763 $ 12,476 $ 169
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share $ 0.270 $ 0.571 $ 0.430 $ 0.675 $ 0.712 $ (0.025) $ (0.019) $ (1.319)
Ratios:
Expenses to average net assets ...... 0.85%+ 0.99% 1.31% 1.07% 1.42% 0.96%+ 1.37% 40.47%+
Net investment income (loss) to
average net assets ................ 5.50%+ 5.83% 4.41% 5.08% 6.48% (0.41)%+ (0.97)% (40.22)%+
</TABLE>
- --------------
** Commencement of investment operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived
management fees for certain periods presented.
See notes to financial statements.
-- P-51 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Financial Highlights (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Growth
Global Portfolio Opportunities Portfolio
------------------------------------------- -----------------------
Six Months 5/3/93* 5/1/96*
Ended Year Ended December 31 to to
6/30/96 1995 1994 12/31/93 6/30/96
--------- -------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ................. $ 12.390 $ 11.340 $ 11.370 $ 10.000 $ 10.000
------- ------ ------- ------- -------
Net investment income ................................ 0.076 0.154 0.131 0.021 0.007
Net realized and unrealized gain (loss) on
investments ....................................... 0.723 0.896 (0.306) 1.518 0.010
Net realized and unrealized gain (loss) from
foreign currency transactions ..................... (0.129) 0.236 0.325 (0.099) (0.007)
------- ------ ------- ------- -------
Increase from investment operations .................. 0.670 1.286 0.150 1.440 0.010
Dividends paid ....................................... -- (0.151) (0.064) (0.053) --
Distributions from net realized gain ................. -- (0.085) (0.116) (0.017) --
------- ------ ------- ------- -------
Net increase (decrease) in net asset value ........... 0.670 1.050 (0.030) 1.370 0.010
------- ------ ------- ------- ------
Net asset value, end of period ....................... $ 13.060 $ 12.390 $ 11.340 $ 11.370 $ 10.010
======= ====== ======= ======= =======
Total Return Based On Net Asset Value: ............... 5.41% 11.34% 1.32% 14.40% 0.10%
Ratios/Supplemental Data:
Expenses to average net assets ....................... 1.40%+ 1.35% 1.20% 1.20%+ 1.40%+
Net investment income to average net assets .......... 1.27%+ 1.01% 1.17% 1.30%+ 1.24%+
Portfolio turnover ................................... 19.12% 41.40% 47.34% 2.82% --
Average commission rate paid ......................... $0.0151 $ 0.0569
Net assets, end of period (000's omitted) ............ $5,697 $4,183 $1,776 $648 $259
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ............... $0.002 $ 0.001 $ (0.419) $(1.004) $ (0.093)
Ratios:
Expenses to average net assets .................... 2.66%+ 3.40% 6.12% 17.94%+ 19.31%+
Net investment income (loss) to
average net assets ............................ 0.01%+ (1.04)% (3.75)% (15.44)%+ (16.67)%+
</TABLE>
<TABLE>
<CAPTION>
Global Smaller Global
Companies Portfolio Technology Portfolio
------------------------------------ --------------------
Six Months Year 10/11/94** 5/1/96*
Ended Ended to to
6/30/96 12/31/95 12/31/94 6/30/96
--------- -------- --------- ------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ................. $ 11.670 $ 10.310 $ 10.000 $ 10.000
-------- -------- -------- --------
Net investment income ................................ 0.039 0.051 0.058 0.011
Net realized and unrealized gain (loss) on
investments ....................................... 2.467 2.037 0.266 (0.143)
Net realized and unrealized gain (loss) from
foreign currency transactions ..................... (0.166) (0.301) 0.029 (0.008)
-------- -------- -------- --------
Increase from investment operations .................. 2.340 1.787 0.353 (0.140)
Dividends paid ....................................... -- (0.052) (0.043) --
Distributions from net realized gain ................. -- (0.375) -- --
-------- -------- -------- --------
Net increase (decrease) in net asset value ........... 2.340 1.360 0.310 (0.140)
-------- -------- -------- --------
Net asset value, end of period ....................... $ 14.010 $ 11.670 $ 10.310 $ 9.860
======== ======== ======== --------
Total Return Based On Net Asset Value: ................ 20.05% 17.38% 3.53% (1.40)%
Ratios/Supplemental Data:
Expenses to average net assets ........................ 1.40%+ 1.39% 1.20%+ 1.40%+
Net investment income to average net assets ........... 0.84%+ 0.64% 3.14%+ 2.04%+
Portfolio turnover .................................... 41.82% 55.65% -- 2.47%
Average commission rate paid .......................... $ 0.0249 $ 0.1255
Net assets, end of period (000's omitted) ............. $ 11,431 $ 4,837 $ 132 $ 429
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ................ $ 0.002 $ (0.051) $ (1.225) $ (0.054)
Ratios:
Expenses to average net assets .................... 2.21%+ 3.84% 37.25%+ 13.74%+
Net investment income (loss) to
average net assets ............................ 0.03%+ (1.81)% (32.91)%+ (10.30)%+
</TABLE>
* Commencement of operations
** Commencement of investment operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived
management fees for certain periods presented.
See notes to financial statements.
-- P-52 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
High-Yield Bond
Portfolio Income Portfolio
--------------------- ----------------------------------------------------------
Six Months 5/1/95* Six Months Year Ended December 31
Ended to Ended -----------------------------------------------
6/30/96 12/31/95 6/30/96 1995 1994 1993 1992 1991
-------- -------- -------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period .......... $10.500 $10.000 $10.560 $ 9.970 $11.380 $11.390 $11.250 $ 9.500
------- ------- ------- ------- ------- ------- ------- -------
Net investment income ......................... 0.443 0.218 0.289 0.604 0.689 0.828 0.862 0.896
Net realized and unrealized gain (loss)
on investments ............................. 0.147 0.519 (0.019) 1.187 (1.369) 0.576 0.896 2.024
------- ------- ------- ------- ------- ------- ------- -------
Increase (decrease) from
investment operations ...................... 0.590 0.737 0.270 1.791 (0.680) 1.404 1.758 2.920
Dividends paid ................................ -- (0.219) -- (0.604) (0.730) (0.828) (0.987) (0.904)
Distributions from net realized gain .......... -- (0.018) -- (0.597) -- (0.586) (0.631) (0.266)
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value .... 0.590 0.500 0.270 0.590 (1.410) (0.010) 0.140 1.750
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period ................ $11.090 $10.500 $10.830 $10.560 $ 9.970 $11.380 $11.390 $11.250
======= ======= ======= ======= ======= ======= ======= =======
Total Return Based On Net Asset Value: ........ 5.62% 7.37% 2.56% 17.98% (5.96)% 12.37% 15.72% 30.89%
Ratios/Supplemental Data:
Expenses to average net assets ................ 0.70%+ 0.70%+ 0.60%+ 0.60% 0.60% 0.64% 0.68% 0.60%
Net investment income to average net assets ... 9.38%+ 7.46%+ 5.48%+ 5.55% 6.34% 6.40% 7.53% 8.05%
Portfolio turnover ............................ 68.25% 67.55% 5.50% 51.22% 29.76% 38.38% 39.46% 43.67%
Average commission rate paid $ 0.0600
Net assets, end of period (000's omitted) ..... $ 6,632 $ 3,009 $ 12,577 $12,619 $ 10,050 $ 11,220 $ 11,363 $11,509
Without management fee waiver and
expense reimbursement:++
Net investment income per share ............... $ 0.428 $ 0.117 $ 0.602 $ 0.670 0.826 $ 0.867
Ratios:
Expenses to average net assets ............. 1.02%+ 4.38%+ 0.62% 0.77% 0.65% 0.93%
Net investment income to average net assets 9.06%+ 3.78%+ 5.53% 6.17% 6.39% 7.72%
</TABLE>
- ---------------
* Commencement of operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived
management fees for certain periods presented.
See notes to financial statements.
-- P-53 --
<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
Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
Director, Commonwealth Aluminum Corporation
Betsy S. Michel 2
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
James Q. Riordan 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Ronald T. Schroeder 1
Managing Director,
J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Director or Trustee,
Various Organizations
James N. Whitson 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
President
Managing Director,
J. & W. Seligman & Co. Incorporated
- --------------
Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
- --------------------------------------------------------------------------------
Executive Officers
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Brian T.Zino
President
Brian Ashford-Russell
Vice President
Daniel J. Charleston
Vice President
Iain Clark
Vice President
Leonard J. Lovito
Vice President
Nitin Mehta
Vice President
Arsen Mrakovcic
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
