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A N N U A L 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]
December 31, 1995
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<PAGE>
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SELIGMAN
PORTFOLIOS,
INC.
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-----------------------------
-----------------------------
February 2, 1996
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios,
Inc., is pleased to provide the enclosed audited financial statements and
accompanying information for Seligman Portfolios, Inc., the underlying
investment vehicle for your policy, for the 12 months ended December 31, 1995.
It can be unanimously concluded that 1995 was a banner year for the US
financial markets. After a pessimistic start, many factors including low
inflation, falling interest rates, and strong corporate earnings paved the way
for a memorable year.
Overall, the market indices tell the best story. The Standard & Poor's 500
Composite Stock Price Index, the Ibbotson Long-Term Government Bond Index, and
the Wilshire 5000 were up 30% or more for the year. The leading market indices
have only twice, since the end of World War II, risen more than 1995's strong
advance.
In spite of the historic advances, the financial markets did teeter towards
the end of the year due to the Federal budget stalemate between the White House
and Congress. Nevertheless, the deadlock in Washington did not deter the Federal
Reserve Board from lowering short-term interest rates on December 19 -- a move
that quickly rejuvenated the financial markets.
Looking forward, the slowing economy, the budget negotiations, and the 1996
Presidential election are a few of the factors that may create somewhat more
volatile markets in the year ahead. We remain optimistic about each portfolio's
performance and will continue to search for, and invest in, those companies that
can sustain earnings growth in a challenging and competitive global business
environment -- a strategy we believe is key to investment performance.
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 MORRIS
William C. Morris
Chairman
J. & W. Seligman & Co. Incorporated
<PAGE>
Seligman Portfolios, Inc.
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Largest Portfolio Changes* (unaudited)
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During the six months ended December 31, 1995
<TABLE>
<CAPTION>
Shares or Shares or
Additions Principal Amount Reductions Principal Amount
--------------------- --------------------- --------------------- ---------------------
Holdings Holdings
Increase 12/31/95 Decrease 12/31/95
-------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SELIGMAN CAPITAL PORTFOLIO
Common Stocks Common Stocks
Comshare ....................... 7,000 shs. 7,000 shs. Borders Group .................. 10,000 shs. --
Donaldson, Lufkin & Jenrette ... 6,000 6,000 Bristol-Myers Squibb ........... 2,000 --
Guidant ........................ 5,000 5,000 Ceridian ....................... 5,400 --
Hart Brewing ................... 10,650 10,650 Chrysler ....................... 2,100 --
Mid Atlantic Medical Services .. 7,400 7,400 DSC Communications ............. 3,400 --
Minerals Technologies .......... 5,000 5,000 EMC ............................ 6,300 --
Olin ........................... 2,300 2,300 HFS Group ...................... 2,000 2,400 shs.
Oxford Health Plans ............ 2,500 2,500 Motorola ....................... 2,400 --
Progressive (Ohio) ............. 3,700 3,700 Phelps Dodge ................... 2,100 --
WorldCom ....................... 5,100 5,100 USF&G .......................... 7,900 --
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks Common Stocks
Applied Materials .............. 3,400 3,400 Ahmanson (H.F.) ................ 8,300 --
Disney, Walt ................... 2,400 2,400 American International Group ... 2,900 4,000(1)
FPL Group ...................... 6,000 6,000 Chubb .......................... 4,000 --
Harley-Davidson ................ 5,200 5,200 Dow Chemical ................... 3,900 3,900
Hasbro ......................... 9,400 9,400 GTE ............................ 6,200 --
Hewlett-Packard ................ 1,700 1,700 International Business Machines 5,200 --
Morton International ........... 4,200 4,200 KeyCorp ........................ 5,100 --
Texaco ......................... 4,800 4,800 Minnesota Mining & Manufacturing 4,000 4,200
Travelers ...................... 2,500 2,500 PacifiCorp ..................... 9,500 --
Union Pacific Resources ........ 13,800 13,800 Pennzoil ....................... 4,300 --
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Common Stocks Common Stocks
Altera ......................... 17,000 17,000 Advanced Micro Devices ......... 5,500 --
KLA Instruments ................ 17,200 25,000(2) Aspect Telecommunications ...... 16,500(3) --
LSI Logic ...................... 22,000 22,000 Bell Microproducts ............. 20,000 --
Microsoft ...................... 10,000 10,000 BMC Software ................... 2,000 --
Silicon Valley Group ........... 25,000 25,000 Cognex ......................... 5,500(4) --
Simware ........................ 100,000 100,000 Mattson Technology ............. 3,500 --
Tekelec ........................ 50,000 50,000 Premisys Communications ........ 2,700 --
Tencor Instruments ............. 27,000 27,000 PRI Automation ................. 4,000 --
Teradyne ....................... 30,000 30,000 Softkey International .......... 8,000 --
Tower Semiconductor ............ 26,500 26,500 Submicron Systems .............. 20,000 --
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
U.S. Government Securities U.S. Government Securities
U.S. Treasury Bonds 8 7/8%, U.S. Treasury Notes 8 7/8%,
2/15/2019 .................... $300,000 $1,200,000 2/15/1996 .................... $300,000 --
Corporate Bonds Corporate Bonds
First Union 6.55%, 10/15/2035 200,000 200,000 James River 6.70%, 11/15/2003 . 150,000 --
</TABLE>
See footnotes on page P-3.
-- P-1 --
<PAGE>
Seligman Portfolios, Inc.
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Largest Portfolio Changes* (unaudited) (continued)
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During the six months ended December 31, 1995
<TABLE>
<CAPTION>
Additions Shares Reductions Shares
--------------------- --------------------- --------------------- ---------------------
Holdings Holdings
Increase 12/31/95 Decrease 12/31/95
-------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SELIGMAN FRONTIER PORTFOLIO
Common Stocks Common Stocks
Amisys Managed Care Systems .... 20,000 20,000 Benson Eyecare ................. 2,250 --
California Energy .............. 10,160 12,060 C*ATS Software ................. 2,500 --
Ceridian ....................... 4,300 4,300 Expert Software ................ 1,500 --
Cognex ......................... 7,080 9,060(5) EZ Communications (Class A) .... 1,000 --
Credence Systems ............... 5,640 5,640 Lincare Holdings ............... 1,100 --
Cypress Semiconductor .......... 7,780 10,900(6) Living Centers of America ...... 710 --
Lam Research ................... 3,460 3,960 Patterson Dental ............... 680 --
Planar Systems ................. 9,010 9,010 Premisys Communications ........ 850 --
Tencor Instruments ............. 4,600 4,600 Trigen Energy .................. 860 --
Vicor .......................... 6,580 8,760(7) U.S. Xpress Enterprises (Class A) 2,510 --
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Common Stocks Common Stocks
Cie Generale des Eaux .......... 652 652 Akzo Nobel ..................... 190 --
East Japan Railway ............. 13 25 BTR ............................ 6,600 --
Mitsui Marine & Fire ........... 8,000 8,000 Daiwa House Industry ........... 2,000 --
Mitsui O.S.K. Lines ............ 20,000 20,000 Fuji Bank ...................... 1,000 --
Nipppon Telegraph & Telephone .. 8 15 Groupe Danone .................. 150 --
Pioneer Electronics ............ 3,000 6,000 L'Oreal ........................ 95 --
Roussel ........................ 383 383 Legal & General Group .......... 3,000 --
Samsung Electronics ............ 1,000 1,000 Mitsubishi High-Tech ........... 1,000 --
Sumitomo Metal Industries ...... 21,000 21,000 Nippon Paper ................... 5,000 --
Zurich Versicherung ............ 173 193 Yamaha ......................... 1,000 4,000
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO
Common Stocks Common Stocks
Amisys Managed Care Systems .... 5,000 5,000 Adelsten (Class B) ............. 30 --
Bau Holdings ................... 1,380 1,380 Exar ........................... 435 --
BT Industries .................. 5,000 5,000 F.H. Faulding .................. 1,100 --
Electro Scientific Industries .. 1,750 1,890 FSI International .............. 300 --
Fotolabo Club .................. 175 175 General Nutrition .............. 130 --
Hornbach Baumarkt .............. 1,034 1,530(8) International House of Pancakes 145 --
Iro ............................ 4,700 4,700 Life Sciences International .... 4,000 --
Opta Food Ingredients .......... 3,700 3,700 PRI Automation ................. 230 --
Otra N.V ....................... 270 3,640(9) Speedway Motorsports ........... 275 --
Plettac ........................ 240 240 Valmet Oy ...................... 910 --
</TABLE>
See footnotes on page P-3.
-- P-2 --
<PAGE>
Seligman Portfolios, Inc.
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During the six months ended December 31, 1995
<TABLE>
<CAPTION>
Principal Amount Principal Amount
Additions or Shares Reductions or Shares
--------------------- --------------------- --------------------- ---------------------
Holdings Holdings
Increase 12/31/95 Decrease 12/31/95
-------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Corporate Bonds Corporate Bonds
Comcast 10 5/8%, 7/15/2012 ..... $92,000 $100,000 Cablevision Systems 10 3/4%,
Fonorola 12 1/2%, 8/15/2002 .... 100,000 100,000 4/1/2004 ....................... $8,000 --
IXC Communications 13%, Continental Homes Holdings 12%,
10/15/2005 ................... 100,000 100,000 8/1/1999 ....................... 8,000 --
Midland Cogeneration Hollywood Casino 14%,
Venture 11 3/4%, 4/1/1998 ....................... 8,000 --
7/23/2005 .................... 100,000 100,000 K-III Communications 10 5/8%,
Mobile Telecommunication 5/1/2002 ....................... 8,000 --
Technologies Kaiser Aluminum 12 3/4%,
13 1/2%, 12/15/2002 .......... 92,000 100,000 2/1/2003 ....................... 8,000 --
Premier Parks 12%, 8/15/2003 ... 100,000 100,000 NWCG Holdings 0%/13 1/2%,
Rogers Cable Systems 11%, 6/15/1999 ...................... 10,000 --
12/1/2015 .................... 100,000 100,000 OrNda Healthcorp 12 1/4%,
TransTexas Gas 11 1/2%, 5/15/2002 ...................... 8,000 --
6/15/2002 .................... 100,000 100,000 Stone Container 9 7/8%,
United Meridian 10 3/8%, 2/1/2001 ....................... 8,000 --
10/15/2005 ................... 100,000 100,000
Williamhouse-Regency 13%,
11/15/2005 ................... 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Common Stocks Common Stocks
FPL Group ...................... 3,000 shs. 3,000 shs. Bank of Boston ................. 8,539 shs. --
Network Equipment Technologies . 4,857 4,857 Century Telephone .............. 5,921 --
Chemical Banking ............... 3,820 --
Convertible Preferred Stocks Dow Chemical ................... 3,500 --
American General 3% ............ 4,500 4,500 New England Electric ........... 3,000 --
International Paper Capital 5 1/4% 3,000 3,000
St. Paul Capital 6% ............ 4,500 4,500 Convertible Preferred Stocks
Snyder Oil (Class A) 6% ........ 5,000 5,000 Browning-Ferris 7 1/4% ........ 3,000 --
Subordinated Convertible Bonds Subordinated Convertible Bonds
TriMas 5%, 8/1/2003 ............ $200,000 $200,000 Bay Networks 5 1/4%, 5/15/2003 $100,000 --
Corporate Bonds James River 6.70%, 11/15/2003 .. 350,000 --
MBNA 6.15%, 10/1/2003 .......... 500,000 500,000
USA Waste Services 8 1/2%,
U.S. Government Securities 10/15/2002 ................... 200,000 --
U.S. Treasury Notes 7 3 1/44%,
12/31/1999 ................... 500,000 500,000 U.S. Government Securities
U.S. Treasury Notes 6 1 1/42%, U.S. Treasury Notes 7 1/4%,
5/15/2005 .................... 500,000 500,000 11/15/1996 ................... 500,000 --
</TABLE>
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* Largest portfolio changes from the previous midyear to the current year-end
are based on cost of purchases and proceeds from sales of securities.
(1) Includes 2,300 shares received as a result of a 3-for-2 stock split.
(2) Includes 6,000 shares received as a result of a 2-for-1 stock split.
(3) Includes 11,500 shares received as a result of a 2-for-1 stock split.
(4) Includes 2,000 shares received as a result of a 2-for-1 stock split.
(5) Includes 1,580 shares received as a result of a 2-for-1 stock split.
(6) Includes 2,500 shares received as a result of a 2-for-1 stock split.
(7) Includes 2,180 shares received as a result of a 2-for-1 stock split.
(8) Includes 477 shares received as a result of a 10-for-1 stock split.
(9) Includes 3,276 shares received as a result of a 10-for-1 stock split.
-- P-3 --
<PAGE>
Seligman Portfolios, Inc.
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Annual Performance Overview
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The following charts compare a $10,000 hypothetical investment made in each of
the Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash
Management Portfolio), since inception through December 31, 1995, to a $10,000
hypothetical investment made in the appropriate benchmark indices and/or
averages for the same period. Accompanying each chart is a discussion of the
economic factors, investment strategy, and sector performance that affected the
Portfolio during the past year.
Seligman Capital Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Five Since
Year Yrs. Inception
---- ---- ---------
Seligman Capital 27.17% 18.14% 13.59%
Portfolio
Lipper Capital
Appreciation 30.40 17.62 13.60*
S&P 500 37.58 16.59 14.95*
*From June 30, 1988.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman Lipper
Capital Capital
Date Porftolio Appreciation S&P 500
---- --------- ------------ -------
6/21/88 ........ $10,000 $10,000 $10,000
6/30/88 ........ $10,000 $10,000 $10,000
9/30/88 ........ $10,090 $ 9,871 $10,034
12/31/88 ....... $10,060 $ 9,954 $10,344
3/31/89 ........ $10,240 $10,724 $11,077
6/30/89 ........ $10,840 $11,606 $12,055
9/30/89 ........ $12,040 $12,807 $13,346
12/31/89 ....... $11,717 $12,600 $13,621
3/31/90 ........ $11,344 $12,298 $13,211
6/30/90 ........ $12,715 $13,060 $14,042
9/30/90 ........ $ 9,720 $10,833 $12,113
12/31/90 ....... $11,344 $11,561 $13,199
3/31/91 ........ $13,596 $13,731 $15,116
6/30/91 ........ $13,778 $13,539 $15,081
9/30/91 ........ $15,455 $14,728 $15,888
12/31/91 ....... $18,042 $16,105 $17,220
3/31/92 ........ $16,842 $16,187 $16,785
6/30/92 ........ $15,601 $15,591 $17,104
9/30/92 ........ $16,791 $15,937 $17,643
12/31/92 ....... $19,268 $17,625 $18,531
3/31/93 ........ $19,904 $18,286 $19,341
6/30/93 ........ $19,552 $18,794 $19,435
9/30/93 ........ $20,846 $20,106 $19,938
12/31/93 ....... $21,514 $20,562 $20,340
3/31/94 ........ $20,837 $19,884 $19,626
6/30/94 ........ $19,010 $19,029 $19,708
9/30/94 ........ $20,736 $20,304 $20,672
12/31/94 ....... $20,526 $19,959 $20,669
3/31/95 ........ $21,802 $21,286 $22,681
6/30/95 ........ $23,112 $23,238 $24,847
9/30/95 ........ $25,196 $25,478 $26,821
12/31/95 ....... $26,102 $26,026 $28,436
Strong growth in corporate profits, with modest inflation and lower interest
rates, provided a beneficial economic environment for the strong US equity
markets in 1995. These favorable economic factors helped your portfolio's
technology and interest-sensitive issues post significant gains during the year.
On the other hand, poor retail sales, including the downhearted holiday period,
made it very difficult for retailers and industries associated with this sector.
Overweighting the technology sector of your portfolio, when the end-markets in
telecommunications and computer-related products were strong, contributed
positively to performance. Conversely, our underweighting of the utilities
sector, which benefited from the decline in interest rates, negatively affected
performance.
The financial sector was the strongest performing sector, benefiting from both a
favorable economic environment and strong individual company performance. The
basic materials sector, however, was the weakest sector, due mainly to declining
steel prices and generally poor earnings results.
Looking ahead, your portfolio is well positioned to take advantage of continued
strength in the US equity markets. Our well-diversified portfolio of strong,
profitable companies should provide good relative earnings gains in an
environment where the S&P 500 earnings growth is expected to slow.
Seligman Common Stock Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Five Since
Year Yrs. Inception
---- ---- ---------
Seligman Common 27.28% 16.31% 13.55%
Stock Portfolio
Lipper Capital
Appreciation 30.75 15.32 12.82*
S&P 500 37.58 16.59 14.95*
*From June 30, 1988.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman Lipper
Common Growth
Stock and
Date Portfolio Income S&P 500
---- --------- ------ -------
6/21/88 ........ $10,000 $10,000 $10,000
6/30/88 ........ $10,000 $10,000 $10,000
9/30/88 ........ $10,190 $10,031 $10,034
12/31/88 ....... $10,180 $10,231 $10,344
3/31/89 ........ $10,581 $10,889 $11,077
6/30/89 ........ $11,223 $11,663 $12,055
9/30/89 ........ $12,317 $12,664 $13,346
12/31/89 ....... $12,635 $12,659 $13,621
3/31/90 ........ $12,522 $12,352 $13,211
6/30/90 ........ $13,315 $12,979 $14,042
9/30/90 ........ $10,965 $11,289 $12,113
12/31/90 ....... $12,237 $12,117 $13,199
3/31/91 ........ $14,425 $13,860 $15,116
6/30/91 ........ $14,287 $13,802 $15,081
9/30/91 ........ $15,281 $14,574 $15,888
12/31/91 ....... $16,295 $15,622 $17,220
3/31/92 ........ $16,604 $15,629 $16,785
6/30/92 ........ $16,472 $15,656 $17,104
9/30/92 ........ $17,146 $16,066 $17,643
12/31/92 ....... $18,272 $17,029 $18,531
3/31/93 ........ $18,928 $17,820 $19,341
6/30/93 ........ $19,127 $17,979 $19,435
9/30/93 ........ $19,608 $18,626 $19,938
12/31/93 ....... $20,454 $19,055 $20,340
3/31/94 ........ $19,621 $18,470 $19,626
6/30/94 ........ $19,730 $18,409 $19,708
9/30/94 ........ $20,727 $19,204 $20,672
12/31/94 ....... $20,463 $18,902 $20,669
3/31/95 ........ $21,933 $20,411 $22,681
6/30/95 ........ $23,314 $22,066 $24,847
9/30/95 ........ $24,769 $23,644 $26,821
12/31/95 ....... $26,044 $24,715 $28,436
Stable economic growth in the US, coupled with declining interest rates,
provided a positive backdrop for strong performance by financial markets in
1995. Also, the con tinuation of low inflation bene fited both stocks and bonds,
which made these in vestments more attractive relative to real assets such as
gold or real estate.
Our decision to modestly over weight financial stocks, based on our expectation
for a decline in interest rates in 1995, contributed greatly to your portfolio's
strong performance. We continue to remain broadly diversified in our stock
selection. While a strategy of betting heavily on individual sectors might have
improved near-term performance, we believe it would have jeopardized your
portfolio's long-term performance.
-- P-4 --
<PAGE>
Seligman Portfolios, Inc.
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December 31, 1995
- --------------------------------------------------------------------------------
Looking forward, we believe that continued low inflation and modest economic
growth should provide a positive environment for investors in 1996. Stock
selection, though, will be an important factor in performance. We are committed
to the maintenance of a broadly diversified portfolio, focusing on companies
with reasonable current income and good earnings and dividend growth prospects.
Seligman Communications and Information Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Since
Year Inception
---- ---------
Seligman Communications 38.55% 35.26%
and Information Portfolio
Lipper Science and
Technology 37.68 34.16*
S&P 500 37.58 29.23*
*From September 30, 1994.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman
Communications Lipper
and Science
Information and
Date Portfolio Technology S&P 500
---- --------- ---------- -------
10/11/94 ....... $10,000 $10,000 $10,000
12/31/94 ....... $10,440 $10,514 $10,020
3/31/95 ........ $11,030 $11,188 $10,996
6/30/95 ........ $14,690 $13,367 $12,046
9/30/95 ........ $16,950 $15,421 $13,003
12/31/95 ....... $14,464 $14,447 $13,786
Virtually every major segment of technology experienced robust growth during the
year: the global personal computer market grew 23% to a record 64 million units;
wireless telephone handsets and infrastructure equipment sales expanded by 35%;
the global semiconductor industry grew 40% to a record $150 billion; and the
Internet was transformed from a small on-line community of scien tists and
academics into a mass-market information super highway.
The fourth quarter however, witnessed a decline in technology stock prices. We
believe a number of factors were responsible, including pricing pressure on
certain types of memory chips, a slower than expected start for Microsoft's new
operating system, Windows 95, and slower unit growth in the US cellular phone
market.
In spite of the recent adversity in the technology sector, we remain optimistic
regarding the appreciation potential of your portfolio's holdings in 1996. Large
segments of the US technology sector are trading at unusually low relative
valuations to the broader market indices. In the past, such valuations have
augured favorably for subsequent returns. Therefore, we remain as enthused as
ever about the prospects for technology - the world's fastest growing major
industry. If anything, the pace of change has accelerated, and with it, the
potential opportunities.
Seligman Fixed Income Securities Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- --------------------------------------------------
Average Annual Total Returns+
One Five Since
Year Yrs. Inception
---- ---- ---------
Seligman Fixed Income 19.18% 8.51% 7.74%
Securities Portfolio
Lipper Fixed Income
Average 15.31 9.01 8.44*
Lehman Brothers Gov't
Bond Index 18.34 9.37 9.64*
*From June 30, 1988.
- --------------------------------------------------
The following table is represented as a line chart in the printed material
Lehman
Seligman Brothers Lipper
Fixed Government Fixed
Income Bond Income
Date Portfolio Index Average
---- --------- ----- -------
6/21/88 ........ $10,000 $10,000 $10,000
6/30/88 ........ $10,000 $10,000 $10,000
9/30/88 ........ $10,100 $10,169 $10,172
12/31/88 ....... $10,101 $10,265 $10,301
3/31/89 ........ $10,121 $10,373 $10,405
6/30/89 ........ $10,670 $11,207 $11,000
9/30/89 ........ $10,691 $11,300 $11,077
12/31/89 ....... $10,979 $11,725 $11,312
3/31/90 ........ $10,797 $11,580 $11,170
6/30/90 ........ $11,119 $11,985 $11,551
9/30/90 ........ $11,162 $12,085 $11,532
12/31/90 ....... $11,653 $12,748 $11,933
3/31/91 ........ $11,924 $13,025 $12,393
6/30/91 ........ $12,094 $13,201 $12,648
9/30/91 ........ $12,727 $13,953 $13,348
12/31/91 ....... $13,352 $14,701 $13,990
3/31/92 ........ $13,121 $14,444 $13,966
6/30/92 ........ $13,485 $15,016 $14,473
9/30/92 ........ $14,081 $15,757 $14,984
12/31/92 ....... $14,099 $15,764 $14,981
3/31/93 ........ $14,548 $16,476 $15,587
6/30/93 ........ $14,879 $16,952 $15,993
9/30/93 ........ $15,249 $17,503 $16,385
12/31/93 ....... $15,224 $17,444 $16,511
3/31/94 ........ $14,787 $16,919 $16,108
6/30/94 ........ $14,622 $16,725 $15,900
9/30/94 ........ $14,742 $16,796 $15,991
12/31/94 ....... $14,708 $16,855 $15,927
3/31/95 ........ $15,215 $17,648 $16,541
6/30/95 ........ $16,263 $18,743 $17,388
9/30/95 ........ $16,596 $19,074 $17,717
12/31/95 ....... $17,530 $19,946 $18,360
One of the key factors to your portfolio's performance is the movement of
interest rates. In 1995, moderating economic growth, subdued inflation, and the
potential for a credible deficit reduction accord helped lower interest rates.
The Federal Reserve Board (FRB) reduced the federal funds rate twice during the
year, resulting in a rally in bond prices. This led to a positive total return
for your portfolio.
We were neutral as we entered 1995, and began extending the maturities of the
issues in the portfolio by purchasing long-term bonds when economic growth
started to moderate and bring down the rate of inflation and interest rates. We
used this strategy in order to take advantage of declining interest rates, as
long-term bonds perform better than short-term bonds in a declining interest
rate environment.
We favored U.S. Treasury securities in 1995 over GNMA mortgage-backed
securities, as Treasury securities tend to outperform mortgage-backed securities
in a declining interest rate environment. Mortgage-backed securities' average
maturities shorten as interest rates decline due to the refinancing of
mortgages. In addition, your portfolio's position in investment-grade corporate
-- P-5 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Annual Performance Overview (continued)
- --------------------------------------------------------------------------------
bonds, which represented 32.3% of the portfolio at December 31, contributed to
its strong performance.
Sluggish income growth and high consumer debt will more than likely slow
economic growth in the first half of 1996. This moderating growth trend, coupled
with a potential balanced-budget accord, could prompt the FRB to ease monetary
policy further and lead to continued interest rate declines. If this scenario
comes to fruition, we expect that we will continue to hold and purchase
long-maturity Treasury Bonds.
Seligman Frontier Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Since
Year Inception
---- ---------
Seligman Frontier Portfolio 33.28% 32.48%
Lipper Small Company Fund 31.45 24.28*
NASDAQ 39.93 29.08*
*From September 30, 1994.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Lipper
Small
Seligman Company
Frontier Fund
Date Portfolio Index NASDAQ
---- --------- ----- ------
10/11/94 ....... $10,000 $10,000 $10,000
12/31/94 ....... $10,580 $9,987 $9,839
3/31/95 ........ $11,300 $10,548 $10,692
6/30/95 ........ $12,260 $11,525 $12,213
9/30/95 ........ $13,780 $12,967 $13,654
12/31/95 ....... $14,101 $13,128 $13,766
The economic growth and con sumer demand in 1995, although slightly slower than
1994's pace, remained strong for the companies in your portfolio, leading to its
strong returns.
During the last quarter of 1995, retail sales slowed, which prompted retailers
to adjust inventories. These adjustments, in turn, had a negative impact on the
trucking industry as the need for new shipments and deliveries abated.
Consequently, both the retail and trucking industries had a difficult year, and
while we took action as quickly as possible, your portfolio experienced some
losses. On the upside, the continued demand for personal computers, pagers,
computer networking, and electronics in automobiles, created strong growth in
earnings and share prices for the companies in the technology segment of your
portfolio. Finally, the financial sector also performed well as it benefited
from the benign interest rate environment and strong demand for new loans.
The outlook for the year ahead is similar to what we have been experiencing.
Moderate inflation and low interest rates make for a favorable investment
environment. Valuations in the small-cap universe are reasonable. This is
especially true of the stocks in your portfolio. Corporate earnings continue to
look good, and the managements of the corporations in your portfolio continue to
express positive outlooks for the coming year.
Seligman Henderson Global Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Since
Year Inception
---- ---------
Seligman Henderson Global
Portfolio 11.34% 10.05%
EAFE Index 11.54 10.53
MSCI World Index 21.31 13.04
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman
Henderson MSCI
Global EAFE World
Date Portfolio Index Index
---- --------- ----- -----
5/3/93 ......... $10,000 $10,000 $10,000
6/30/93 ........ $10,010 $10,057 $10,148
9/30/93 ........ $10,480 $10,731 $10,637
12/31/93 ....... $11,439 $10,830 $10,821
3/31/94 ........ $10,987 $11,216 $10,900
6/30/94 ........ $11,399 $11,797 $11,241
9/30/94 ........ $11,751 $11,816 $11,495
12/31/94 ....... $11,591 $11,704 $11,425
3/31/95 ........ $11,428 $11,931 $11,975
6/30/95 ........ $11,765 $12,027 $12,502
9/30/95 ........ $12,603 $12,538 $13,216
12/31/95 ....... $12,905 $13,055 $13,860
Overall, economic factors have played a relatively modest role in the direction
of international stock markets. Economies have gener ally been growing steadily
in the more mature countries of the world, although there are some signs of
overheating in the Pacific. The consistent decline in inflation almost
everywhere has been a very positive feature with rates of inflation invariably
coming in lower than consensus estimates. This factor has helped bond markets,
and long-bond yields have declined virtually everywhere, providing a positive
backdrop for international equity investing.
The key economic question going forward is whether the slowdown in global growth
is just temporary or whether it presages a move towards recession. We support
the former view as we see modest growth in consumer spending next year helping
to keep economies moving along -- although not at a particularly rapid pace.
-- P-6 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
This scenario should also be reasonably favorable for inflation, and there still
appears to be very few significant inflationary pressures on a global basis.
With this background in mind, we continue to favor financial assets. Provided
there is some economic growth this year, corporate earnings should continue to
improve leading to a positive stock market background.
Seligman Henderson Global Smaller Companies Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Since
Year Inception
---- ---------
Seligman Henderson Global
Smaller Companies Portfolio 17.38% 17.30%
Lipper Global Small
Companies Average 15.62 8.54*
MSCI World Index 21.31 16.11*
*From September 30, 1994.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman
Henderson Lipper
Global Global
Smaller Small MSCI
Companies Companies World
Date Portfolio Average Index
---- --------- ------- -----
10/11/94 ....... $10,000 $10,000 $10,000
12/31/94 ....... $10,353 $ 9,584 $ 9,939
3/31/95 ........ $10,594 $ 9,470 $10,417
6/30/95 ........ $10,886 $10,182 $10,876
9/30/95 ........ $11,860 $11,047 $11,497
12/31/95 ....... $12,152 $11,081 $12,057
Generally, the economic back ground has had a rather mixed effect on smaller
companies worldwide. In Japan, smaller companies performed poorly as the economy
continued to suffer from the effects of the strong Yen. European smaller
companies performed reasonably well in the early part of the year. However, with
more recent evidence of slowing economies and fears over what 1996 will bring,
smaller companies have begun to underperform larger companies. By contrast, in
the US, economic factors have had little impact on smaller companies, which have
been boosted by the strength of the technology sector.
Outside the US, smaller companies have generally suffered in recent months as
economic growth around the world has slowed. Our economic forecasts suggest that
economic growth should improve during 1996, and this would provide a reasonably
benign backdrop for smaller companies. We see particularly attractive value in
Continental Europe; however, the area with the most potential to improve is
Japan -- provided its economy does improve next year. We believe this will be
the case and, therefore, we are likely to increase our Japanese weighting
steadily over the next few months. Overall, smaller companies continue to
provide an abundance of exciting investment opportunities, and we believe the
background for investing should be very positive.
Seligman High-Yield Bond Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Return+
Since
Inception
---------
Seligman High Yield Bond Portfolio 7.37%
Lipper High-Yield Bond Fund Index 8.79
Merrill Lynch Master Index 10.50
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Lipper
Seligman High-Yield Merrill
High-Yield Bond Lynch
Bond Fund Master
Date Portfolio Index Index
---- --------- ----- -----
5/1/95 ......... $10,000 $10,000 $10,000
5/31/95 ........ $10,000 $10,225 $10,312
6/30/95 ........ $10,030 $10,261 $10,390
7/31/95 ........ $10,160 $10,469 $10,509
8/31/95 ........ $10,150 $10,489 $10,573
9/30/95 ........ $10,300 $10,600 $10,693
10/31/95 ....... $10,440 $10,671 $10,769
11/30/95 ....... $10,540 $10,723 $10,875
12/31/95 ....... $10,737 $10,879 $11,050
The decline in interest rates during 1995 had a positive impact on the
performance and growth of your portfolio throughout the year. Increased demand
for high current income was evident as investors infused $10.2 billion into
high-yield mutual funds.
Your portfolio continued its strategy of investing in credits with improving
cash flows, strong industry fundamentals, and seasoned management teams. The
hotel and gaming sectors performed well, in particular those located in Atlantic
City, as fears of increased competition subsided. Additionally, strong demand
within the communications area helped advance many of your portfolio's holdings
in this sector. Finally, the health care and utility sectors continue to show
positive trends.
We continue to find the high-yield marketplace an attractive investment for
those seeking a high level of current income. We expect credit quality to show
steady improvements within the media sectors, with tele commu ni cations reform
as the driving force.
-- P-7 --
<PAGE>
- --------------------------------------------------------------------------------
Annual Performance Overview (continued) December 31, 1995
- --------------------------------------------------------------------------------
Seligman Income Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
- ----------------------------------------------
Average Annual Total Returns+
One Five Since
Year Yrs. Inception
---- ---- ---------
Seligman Income 17.98% 13.56% 10.03%
Portfolio
Lipper Income 22.10 12.69 10.69*
S&P 500 37.58 16.59 14.95*
*From June 30, 1988.
- ----------------------------------------------
The following table is represented as a line chart in the printed material
Seligman
Income Lipper
Date Portfolio S&P 500 Income
---- --------- ------- ------
6/21/88 ........ $10,000 $10,000 $10,000
6/30/88 ........ $10,000 $10,000 $10,000
9/30/88 ........ $10,090 $10,034 $10,160
12/31/88 ....... $10,110 $10,344 $10,272
3/31/89 ........ $10,452 $11,077 $10,615
6/30/89 ........ $11,097 $12,055 $11,183
9/30/89 ........ $11,379 $13,346 $11,622
12/31/89 ....... $11,587 $13,621 $11,776
3/31/90 ........ $11,566 $13,211 $11,593
6/30/90 ........ $11,673 $14,042 $11,918
9/30/90 ........ $10,512 $12,113 $11,311
12/31/90 ....... $10,880 $13,199 $11,790
3/31/91 ........ $12,105 $15,116 $12,793
6/30/91 ........ $12,609 $15,081 $13,032
9/30/91 ........ $13,639 $15,888 $13,910
12/31/91 ....... $14,241 $17,220 $14,680
3/31/92 ........ $14,823 $16,785 $14,826
6/30/92 ........ $15,190 $17,104 $15,288
9/30/92 ........ $15,747 $17,643 $15,838
12/31/92 ....... $16,479 $18,531 $16,122
3/31/93 ........ $17,376 $19,341 $16,955
6/30/93 ........ $17,853 $19,435 $17,337
9/30/93 ........ $18,389 $19,938 $17,903
12/31/93 ....... $18,518 $20,340 $18,075
3/31/94 ........ $17,736 $19,626 $17,539
6/30/94 ........ $17,199 $19,708 $17,453
9/30/94 ........ $17,785 $20,672 $17,789
12/31/94 ....... $17,413 $20,669 $17,546
3/31/95 ........ $18,042 $22,681 $18,512
6/30/95 ........ $19,265 $24,847 $19,601
9/30/95 ........ $20,400 $26,821 $20,501
12/31/95 ....... $20,544 $28,436 $21,421
The dramatic decline in interest rates in 1995 had a very positive impact on
your portfolio. Investors' expectations for stable economic growth coupled with
modest inflation greatly benefited income-sensitive investments such as bonds,
convertible securities, and higher yielding equities - traditional investments
for your portfolio.
The financial, technology, and utility industries - three of the larger sectors
in the convertible and equity portions of your portfolio - did particularly
well. Additionally, the bonds held in your portfolio contributed not only high
current income, but also solid capital appreciation. Issue selection will be
extremely important for your portfolio's performance in 1996. We will pay
particular attention to identifying value, both in the stock and bond markets.
- ----------
+ Performance data quoted represent past performance and assume that all
dividends and distributions are invested in additional shares. The investment
return and principal value of an investment will fluctuate so that shares, if
redeemed, may be worth more or less than their original cost. Past performance
is not indicative of future investment results.
-- P-8 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 95.2%
AUTOMOTIVE AND RELATED -- 3.1%
Cooper Tire & Rubber ........................ 5,000 $ 123,125
Harley-Davidson ............................. 5,800 166,750
-----------
289,875
-----------
BASIC MATERIALS -- 3.1%
Nucor ....................................... 2,100 119,962
Olin ........................................ 2,300 170,775
-----------
290,737
-----------
BUSINESS SERVICES AND SUPPLIES -- 1.7%
Interpublic Group of Companies .............. 3,600 156,150
-----------
COMPUTER GOODS AND SERVICES -- 5.5%
Altera* ..................................... 2,200 109,312
FIserv* ..................................... 6,000 179,625
Intel ....................................... 2,400 136,350
Sequent Computer Systems .................... 6,000 86,250
-----------
511,537
-----------
CONSUMER GOODS AND SERVICES -- 8.6%
Estee Lauder* ............................... 2,500 87,187
Masco ....................................... 4,600 144,325
Newell ...................................... 5,800 150,075
Oakley* ..................................... 5,400 183,600
Tambrands ................................... 1,600 76,400
Tommy Hilfiger* ............................. 3,700 156,787
-----------
798,374
-----------
DRUGS AND HEALTH CARE -- 11.5%
Amgen* ...................................... 3,600 213,525
Arrow International ......................... 3,000 121,875
Columbia/HCA Healthcare ..................... 2,900 147,175
Humana* ..................................... 5,300 145,087
Mid Atlantic Medical Services ............... 7,400 179,450
Oxford Health Plans ......................... 2,500 184,375
Sunrise Medical * ........................... 4,000 74,000
-----------
1,065,487
-----------
FINANCIAL SERVICES -- 11.5%
Amerin* ..................................... 7,200 192,150
Donaldson, Lufkin & Jenrette ................ 6,000 187,500
MBNA ........................................ 4,800 177,000
Progressive (Ohio) .......................... 3,700 180,838
Transatlantic Holdings ...................... 1,700 124,738
Travelers ................................... 3,300 207,488
-----------
1,069,714
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-9 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
Shares Value
------ -----
FOOD AND FOOD SERVICES -- 4.4%
Brinker International* ...................... 5,200 $ 78,650
Hart Brewing ................................ 10,650 159,750
PepsiCo ..................................... 3,000 167,625
-----------
406,025
-----------
LEISURE AND RELATED -- 10.4%
Chris-Craft Industries* ..................... 3,600 155,700
Circus Circus Enterprises* .................. 3,700 103,137
HFS Group* .................................. 2,400 196,200
Infinity Broadcasting* ...................... 3,700 137,825
Mattel ...................................... 6,250 192,187
Mirage Resorts* ............................. 5,200 179,400
-----------
964,449
-----------
MEDICAL EQUIPMENT -- 3.5%
Guidant ..................................... 5,000 211,250
Physio-Control International* ............... 6,200 112,375
-----------
323,625
-----------
RETAIL TRADE -- 5.5%
Home Depot .................................. 3,500 167,562
Illinois Tool Works ......................... 2,700 159,300
Nordstrom ................................... 2,400 96,900
OfficeMax* .................................. 4,100 91,738
-----------
515,500
-----------
SOFTWARE -- 14.9%
3DO* ........................................ 6,500 65,812
7th Level* .................................. 3,800 54,388
Activision* ................................. 17,500 193,594
Arbor Software .............................. 2,000 94,000
BMC Software* ............................... 1,500 63,938
Comshare .................................... 7,000 185,500
Microsoft* .................................. 1,900 166,844
Objective Systems Integrators* .............. 1,900 103,787
Spectrum Holobyte* .......................... 7,000 45,063
Sterling Software* .......................... 3,300 205,838
Sybase* ..................................... 4,020 144,218
Symantec* ................................... 2,700 62,606
-----------
1,385,588
-----------
SPECIALTY CHEMICALS -- 1.1%
Schulman, A ................................. 4,687 104,872
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-10 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
Shares
or
Principal
Amount Value
------ -----
TECHNOLOGIES -- 3.6%
Litton Industries* .......................... 3,400 shs. $ 151,300
Minerals Technologies ....................... 5,000 182,500
-----------
333,800
-----------
TELECOMMUNICATIONS -- 6.8%
British Sky Broadcasting (ADRs) ............. 4,900 184,362
Century Telephone Enterprises ............... 4,100 130,175
Viacom (Class B) ............................ 3,000 142,125
WorldCom* ................................... 5,100 180,413
-----------
637,075
-----------
Total Common Stocks (Cost $7,412,353) ....... 8,852,808
REPURCHASE AGREEMENTS -- 10.8% (Cost $1,000,000)
HSBC Securities, Inc. 5%, maturing 1/3/1996
collateralized by: $985,000 U.S.
Treasury Notes 6 7/8%, 3/31/1997,
with a fair market value
of $1,020,059 ............................ $ 1,000,000 1,000,000
-----------
Total Investments -- 106.0% (Cost $8,412,353) 9,852,808
Other Assets Less Liabilities -- (6.0)% ..... (559,292)
-----------
Net Assets -- 100.0% ........................ $ 9,293,516
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-11 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO
Annualized
Yield on
Purchase Principal
Date Amount Value
--------- --------- ---------
U.S. GOVERNMENT SECURITIES -- 45.5%
U.S. Treasury Bills, 3/7/1996 ............... 5.50% $1,600,000 $1,584,365
U.S. Treasury Bills, 4/25/1996 .............. 5.37 2,000,000 1,966,906
----------
Total U.S. Government Securities (Cost $3,551,271) 3,551,271
----------
BANKERS' ACCEPTANCES -- 2.5% (Cost $198,047)
Chase Manhattan Bank, New York, 3/4/1996 .... 5.76 200,000 198,047
----------
CERTIFICATES OF DEPOSIT -- 6.4%
Harris Trust & Savings, Chicago, 3/1/1996 ... 5.79 300,000 300,010
Wachovia Bank of Georgia, 1/25/1996 ......... 5.86 200,000 200,003
----------
Total Certificates of Deposit (Cost $500,013) 500,013
----------
COMMERCIAL PAPER -- 37.6%
American Express Credit Corp., 1/17/1996 .... 5.75 250,000 249,371
American General Finance Corp., 2/21/1996 ... 5.74 300,000 297,603
AT&T Capital Corp., 3/15/1996 ............... 5.60 300,000 296,596
Associates Corp. of North America, 4/16/1996 5.55 350,000 344,383
Beneficial Corp., 2/21/1996 ................. 5.57 300,000 297,658
CoreStates Financial Corp., 3/27/1996 ....... 5.61 300,000 296,044
Ford Motor Credit Corp., 2/12/1996 .......... 5.73 300,000 298,023
General Electric Capital Corp., 2/21/1996 ... 5.75 300,000 297,603
John Deere Capital Corp., 1/31/1996 ......... 5.77 250,000 248,821
Pitney Bowes Credit Corp., 2/2/1996 ......... 5.71 300,000 298,493
----------
Total Commercial Paper (Cost $2,924,595) .... 2,924,595
----------
REPURCHASE AGREEMENTS -- 7.7% (cost $600,000)
HSBC Securities, Inc. 5%, maturing 1/3/1996
collateralized by:
$590,000 U.S. Treasury Notes 6 7/8%, 3/31/1997,
with a fair market value of $611,000 ..... 600,000 600,000
----------
Total Investments -- 99.7% (Cost $7,773,926). 7,773,926
Other Assets Less Liabilities -- 0.3% ....... 25,585
----------
Net Assets -- 100.0% ........................ $7,799,511
==========
SELIGMAN COMMON STOCK PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 84.2%
ADVERTISING -- 1.1%
Omnicom Group ............................... 8,400 $ 312,900
-----------
AEROSPACE/DEFENSE -- 1.7%
General Motors (Class H) .................... 5,600 275,100
United Technologies ......................... 2,300 218,212
-----------
493,312
-----------
- ----------
See notes to financial statements.
-- P-12 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
APPAREL AND TEXTILES -- 1.2%
Liz Claiborne ............................... 5,800 $ 160,950
Unifi ....................................... 8,400 186,375
-----------
347,325
-----------
AUTOMOTIVE AND RELATED -- 1.8%
Echlin ...................................... 3,300 120,450
Genuine Parts ............................... 3,000 123,000
Harley-Davidson ............................. 5,200 149,500
The Pep Boys ................................ 5,400 138,375
-----------
531,325
-----------
BUILDING AND CONSTRUCTION -- 0.8%
Cemex S.A. (ADSs) ........................... 16,875 60,557
Sherwin-Williams ............................ 4,000 163,000
-----------
223,557
-----------
CHEMICALS -- 2.4%
Air Products and Chemicals .................. 6,200 327,050
Crompton & Knowles .......................... 7,600 100,700
Dow Chemical ................................ 3,900 274,463
-----------
702,213
-----------
CONSUMER GOODS AND SERVICES -- 11.3%
Coca-Cola ................................... 4,800 356,400
Colgate-Palmolive ........................... 4,200 295,050
Eastman Kodak ............................... 3,200 214,400
Gillette .................................... 8,200 427,425
International Flavor & Fragrance ............ 5,900 283,200
Lowe's ...................................... 4,300 144,050
Morton International ........................ 4,200 150,675
RJR Nabisco Holdings ........................ 4,400 135,850
PepsiCo ..................................... 12,100 676,088
Procter & Gamble ............................ 4,500 373,500
Rubbermaid .................................. 7,500 191,250
-----------
3,247,888
-----------
DRUGS AND HEALTH CARE -- 6.2%
Abbott Laboratories ......................... 6,200 258,850
American Home Products ...................... 2,000 194,000
Bard (C.R.) ................................. 5,000 161,250
Bausch & Lomb ............................... 2,500 99,062
Bristol-Myers Squibb ........................ 2,900 249,037
Guidant ..................................... 3,800 160,550
Mallinckrodt Group .......................... 3,700 134,588
Schering-Plough ............................. 9,600 525,600
-----------
1,782,937
-----------
- ----------
See notes to financial statements.
-- P-13 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
ELECTRIC AND GAS UTILITIES -- 1.0%
FPL Group ................................... 6,000 $ 278,250
-----------
ELECTRONICS -- 0.8%
Motorola .................................... 4,200 239,400
-----------
ENERGY -- 11.5%
Anadarko Petroleum .......................... 2,900 156,962
Atlantic Richfield .......................... 2,100 232,575
Baker Hughes ................................ 7,000 170,625
Enron ....................................... 6,300 240,187
Mobil ....................................... 2,400 268,800
Panhandle Eastern ........................... 9,300 259,238
Royal Dutch Petroleum ....................... 3,700 522,163
Schlumberger ................................ 5,400 373,950
Sonat ....................................... 9,200 327,750
Texaco ...................................... 4,800 376,800
Union Pacific Resources ..................... 13,800 350,175
-----------
3,279,225
-----------
FINANCE AND INSURANCE -- 11.1%
Aetna Life & Casualty ....................... 3,200 221,600
American International Group ................ 4,000 370,000
Bank of New York ............................ 4,800 234,000
BankAmerica ................................. 2,200 142,450
Federal National Mortgage Association ....... 2,600 322,725
General Re .................................. 3,100 480,500
Household International ..................... 1,600 94,600
Morgan (J.P.) ............................... 1,900 152,475
NationsBank ................................. 5,814 404,800
PNC Bank .................................... 5,900 190,275
St. Paul Companies .......................... 2,500 139,062
State Street Boston ......................... 6,300 283,500
Travelers ................................... 2,500 157,187
-----------
3,193,174
-----------
FOOD -- 4.4%
Campbell Soup ............................... 4,700 282,000
ConAgra ..................................... 4,050 167,062
CPC International ........................... 4,200 288,225
General Mills ............................... 4,100 236,775
Sara Lee .................................... 9,500 302,813
-----------
1,276,875
-----------
INDUSTRIAL EQUIPMENT -- 2.6%
Emerson Electric ............................ 2,200 179,850
General Electric ............................ 7,900 568,800
-----------
748,650
-----------
- ----------
See notes to financial statements.
-- P-14 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
------ -----
LEISURE AND ENTERTAINMENT -- 1.5%
Disney, Walt ................................ 2,400 $ 141,600
Hasbro ...................................... 9,400 291,400
-----------
433,000
-----------
OFFICE EQUIPMENT -- 1.0%
Pitney Bowes ................................ 6,400 300,800
-----------
PAPER PRODUCTS -- 1.3%
International Paper ......................... 3,500 132,563
Kimberly-Clark .............................. 3,000 248,250
-----------
380,813
-----------
PRINTING AND PUBLISHING -- 2.5%
Donnelley (R.R.) ............................ 3,000 118,125
Knight-Ridder Newspapers .................... 5,600 350,000
Reader's Digest (Class A) ................... 2,700 138,375
Tribune ..................................... 2,000 122,250
-----------
728,750
-----------
RESTAURANTS -- 0.5%
Wendy's International ....................... 7,100 150,875
-----------
RETAIL TRADE -- 5.5%
American Stores ............................. 6,700 179,225
Dillard Department Stores ................... 4,200 119,700
Kmart ....................................... 5,800 42,050
Limited ..................................... 5,900 102,512
May Department Stores ....................... 6,800 287,300
Nordstrom ................................... 6,700 270,513
Penney (J. C.) .............................. 4,000 190,500
Sears, Roebuck .............................. 4,000 156,000
Wal-Mart .................................... 6,600 147,675
Woolworth ................................... 7,200 93,600
-----------
1,589,075
-----------
STEEL -- 0.4%
Nucor ....................................... 2,200 125,675
-----------
TECHNOLOGY -- 2.9%
Applied Materials ........................... 3,400 133,663
Cray Research ............................... 11,000 272,250
Hewlett-Packard ............................. 1,700 142,375
Intel ....................................... 2,400 136,350
Teradyne .................................... 5,700 142,500
-----------
827,138
-----------
TELECOMMUNICATIONS -- 1.9%
ALLTEL ...................................... 9,100 268,450
American Telephone & Telegraph .............. 4,200 271,950
-----------
540,400
-----------
- ----------
See notes to financial statements.
-- P-15 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares
or
Principal
Amount Value
------ -----
TELEPHONE UTILITIES -- 1.0%
NYNEX ....................................... 5,300 shs. $ 286,200
-----------
TOBACCO -- 2.3%
Philip Morris ............................... 4,200 380,100
Schweitzer-Mauduit International ............ 300 6,938
UST Inc. .................................... 8,400 280,350
-----------
667,388
-----------
TRANSPORTATION -- 1.8%
Caliber System .............................. 4,850 236,437
Conrail ..................................... 2,900 203,000
NFC ......................................... 40,000 88,145
-----------
527,582
-----------
MISCELLANEOUS/DIVERSIFIED -- 3.7%
Corning (Delaware) .......................... 12,200 390,400
Dover ....................................... 4,400 162,250
Minnesota Mining & Manufacturing ............ 4,200 278,250
Tenneco ..................................... 5,000 248,125
-----------
1,079,025
-----------
Total Common Stocks (Cost $17,603,035) ...... 24,293,752
-----------
SUBORDINATED CONVERTIBLE BONDS -- 1.1%
EMC 4 1/4%, 1/1/2001 ........................ $ 125,000 124,375
MascoTech 4 1/2%, 12/15/2003 ................ 250,000 195,625
-----------
Total Subordinated Convertible Bonds
(Cost $321,514)............................ 320,000
-----------
REPURCHASE AGREEMENTS -- 13.9% (Cost $4,000,000)
HSBC Securities, Inc. 5%, maturing 1/3/1996
collateralized by:
$3,950,000 U.S. Treasury Notes 6 7/8%, 3/31/1997,
with a fair market value of $4,090,591 .... 4,000,000 4,000,000
-----------
Total Investments -- 99.2% (Cost $21,924,549) 28,613,752
Other Assets Less Liabilities -- 0.8% ....... 222,293
-----------
Net Assets -- 100.0% ........................ $28,836,045
===========
- ----------
See notes to financial statements.
-- P-16 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 97.6%
COMMUNICATIONS INFRASTRUCTURE -- 11.1%
3Com* ....................................... 18,000 $ 840,375
CIDCO* ...................................... 31,000 786,625
Cisco Systems* .............................. 8,000 597,500
ECI Telecommunications ...................... 30,000 686,250
General Scanning* ........................... 20,000 195,000
Madge Networks* ............................. 10,000 445,625
StrataCom* .................................. 2,500 183,125
Tekelec* .................................... 50,000 528,125
-----------
4,262,625
-----------
COMPUTER HARDWARE/PERIPHERALS -- 14.6%
Adaptec* .................................... 16,000 656,000
Compaq Computers* ........................... 17,000 816,000
Electronics for Imaging* .................... 10,000 433,750
EMC* ........................................ 35,000 538,125
Komag* ...................................... 12,500 573,438
Mylex* ...................................... 20,000 386,250
Read-Rite* .................................. 20,000 463,750
Seagate Technology* ......................... 13,000 617,500
Tektronix ................................... 15,000 736,875
Vicor* ...................................... 20,000 397,500
-----------
5,619,188
-----------
COMPUTER SOFTWARE -- 21.4%
FTP Software* ............................... 23,000 668,437
Glenayre Technologies* ...................... 12,000 747,000
Informix* ................................... 27,000 811,687
Mentor Graphics ............................. 30,000 543,750
Microsoft ................................... 10,000 878,125
Netmanage* .................................. 15,000 346,875
Network General ............................. 18,000 596,250
Oracle Systems* ............................. 18,000 762,750
Parametric Technology* ...................... 12,000 796,500
Simware* .................................... 100,000 606,250
Smith Micro Software* ....................... 50,000 350,000
Symantec* ................................... 30,000 695,625
Synopsys* ................................... 11,000 419,375
-----------
8,222,624
-----------
CONTRACT MANUFACTURING -- 3.5%
Altron* ..................................... 25,000 746,875
Merix* ...................................... 20,000 593,750
-----------
1,340,625
-----------
SEMICONDUCTORS -- 23.3%
Altera* ..................................... 17,000 844,687
Cypress Semiconductor* ...................... 52,000 663,000
Integrated Device Technology* ............... 40,000 517,500
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-17 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares Value
------ -----
SEMICONDUCTORS (continued)
Intel ....................................... 13,000 $ 738,563
Lattice Semiconductor ....................... 24,000 784,500
Linear Technology ........................... 10,000 393,750
LSI Logic* .................................. 22,000 720,500
Maxim Integrated Products* .................. 20,000 770,000
Microchip Technology* ....................... 21,000 769,125
National Semiconductor* ..................... 30,000 667,500
Tower Semiconductor* ........................ 26,500 574,719
VLSI Technology* ............................ 40,000 722,500
Xilinx* ..................................... 20,000 607,500
Zycon ....................................... 15,000 170,625
-----------
8,944,469
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 23.7%
Amtel ....................................... 30,000 667,500
Applied Materials ........................... 17,000 668,312
Asyst Technologies .......................... 20,000 707,500
Credence Systems* ........................... 25,000 568,750
Electro Scientific* ......................... 25,000 721,875
Electroglas* ................................ 30,000 757,500
Fusion Systems* ............................. 2,000 55,500
Information Storage Devices* ................ 35,000 385,000
KLA Instruments* ............................ 25,000 653,125
Lam Research* ............................... 16,000 730,000
Novellus Systems* ........................... 13,000 703,625
Silicon Valley Group* ....................... 25,000 632,813
Tencor Instruments* ......................... 27,000 658,125
Teradyne* ................................... 30,000 750,000
Varian Associates ........................... 10,000 477,500
-----------
9,137,125
-----------
Total Common Stocks (Cost $41,365,744) ...... 37,526,656
Short-Term Holdings -- 2.6% (Cost $1,000,000) 1,000,000
-----------
Total Investments -- 100.2% (Cost $42,365,744) 38,526,656
Other Assets Less Liabilities -- (0.2)% ..... (84,563)
-----------
Net Assets -- 100.0% ........................ $38,442,093
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-18 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN FIXED INCOME SECURITIES PORTFOLIO
Principal
Amount Value
------ -----
U.S. GOVERNMENT SECURITIES AND AGENCIES -- 49.7%
U.S. GOVERNMENT SECURITIES -- 36.0%
(Cost $1,411,772)
U.S. Treasury Bonds 8 7/8%, 2/15/2019 ....... $ 1,200,000 $ 1,619,250
-----------
U.S. GOVERNMENT AGENCIES -- 13.7%
Government National Mortgage Association:
10%, 12/15/2020+ ......................... 288,116 316,748
7 1/2%, 6/15/2023+ ....................... 291,440 300,001
-----------
Total U.S. Government Agencies (Cost $583,506) 616,749
-----------
Total U.S. Government Securities and Agencies
(Cost $1,995,278) ......................... 2,235,999
-----------
CORPORATE BONDS -- 32.3%
AEGON N.V. 8%, 8/15/2006 .................... 150,000 169,296
American Home 7.90%, 2/15/2005 .............. 150,000 169,029
Capital One Bank 8 1/8%, 3/1/2000 ........... 150,000 161,535
First Union 6.55%, 10/15/2035 ............... 200,000 206,979
First USA Bank 5 3/4%, 1/15/1999 ............ 100,000 99,565
General Motors Acceptance 5 5/8%, 2/1/1999 .. 150,000 149,692
Golden West Financial 6.70%, 7/1/2002 ....... 150,000 154,454
News America Holdings 8 1/4%, 8/10/2018 ..... 150,000 164,067
United Telecommunications 9 1/2%, 4/1/2003 .. 150,000 178,041
-----------
Total Corporate Bonds (Cost $1,338,167) ..... 1,452,658
-----------
REPURCHASE AGREEMENTS -- 11.1% (Cost $500,000)
HSBC Securities, Inc. 5%, maturing 1/2/1996
collateralized by:
$495,000 U.S. Treasury Notes 6 1/8%, 7/31/1996,
with a fair market value of $509,761 ...... 500,000 500,000
-----------
Total Investments -- 93.1% (Cost $3,833,445). 4,188,657
Other Assets Less Liabilities -- 6.9% ....... 307,891
-----------
Net Assets -- 100.0% ........................ $ 4,496,548
===========
- ----------
+ Investments in mortgage-backed securities are subject to principal paydowns.
As a result of prepayments from refinancing or satisfaction of the underlying
mortgage instruments, the average life may be less than the stated maturity.
This in turn may impact the ultimate yield realized from these investments.
See notes to financial statements.
-- P-19 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 94.8%
ADVERTISING -- 1.9%
DIMAC* ...................................... 2,790 $ 76,028
Heritage Media (Class A)* ................... 4,045 103,653
Katz Media Group* ........................... 3,530 62,216
-----------
241,897
-----------
AEROSPACE/DEFENSE -- 1.2%
BDM International* .......................... 5,110 148,190
-----------
APPAREL -- 0.9%
St. John Knits .............................. 2,060 109,438
-----------
BROADCASTING -- 2.5%
Argyle Television* .......................... 3,100 53,475
Evergreen Media (Class A)* .................. 4,800 153,600
Jacor Communications* ....................... 4,350 73,950
United Video Satellite Group (Class A)* ..... 962 26,215
-----------
307,240
-----------
BUSINESS GOODS AND SERVICES -- 16.1%
Barefoot .................................... 6,730 69,403
Bell & Howell Holdings* ..................... 4,890 136,920
BISYS Group* ................................ 4,875 148,687
Ceridian* ................................... 4,300 177,375
Corporate Express* .......................... 6,000 180,000
DST Systems* ................................ 4,400 125,400
HFS Group* .................................. 1,500 122,625
Interim Services* ........................... 2,140 74,098
Inter-Tel* .................................. 7,800 120,900
National Data ............................... 5,550 138,056
Nu-Kote Holdings (Class A)* ................. 7,200 123,300
SITEL* ...................................... 7,200 219,600
SPS Transaction Services .................... 2,570 76,136
US Office Products* ......................... 7,700 173,731
United Transnet* ............................ 8,100 124,538
-----------
2,010,769
-----------
CAPITAL GOODS -- 4.6%
The Carbide/Graphite Group* ................. 9,300 133,687
DT Industries ............................... 2,900 38,425
Fusion Systems* ............................. 1,245 34,549
Greenfield Industries ....................... 2,390 74,389
Oak Industries* ............................. 3,330 62,437
UCAR International .......................... 4,600 155,250
Wolverine Tube* ............................. 1,955 72,946
-----------
571,683
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-20 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
------ -----
COMMUNICATIONS -- 6.9%
ADFlex Solutions* ........................... 4,000 $ 106,000
Arch Communications Group* .................. 5,165 124,283
Aspect Telecommunications* .................. 4,880 162,870
Cellular Communications International* ...... 180 9,022
CIDCO* ...................................... 4,880 123,830
Madge Networks* ............................. 3,939 175,532
MobileMedia (Class A)* ...................... 3,720 82,305
ProNet* ..................................... 2,470 73,019
-----------
856,861
-----------
COMPUTER HARDWARE PERIPHERALS -- 2.3%
Electronics for Imaging* .................... 2,720 117,980
Planar Systems* ............................. 9,010 172,316
-----------
290,296
-----------
COMPUTER SOFTWARE AND SERVICES -- 7.6%
Amisys Managed Care Systems* ................ 20,000 382,500
Mentor Graphics* ............................ 6,780 122,888
Netmanage* .................................. 6,110 141,294
Oak Technology* ............................. 500 21,312
SunGard Data Systems* ....................... 3,600 101,250
Synopsys* ................................... 4,840 184,525
-----------
953,769
-----------
CONSUMER GOODS AND SERVICES -- 4.7%
Buckeye Cellulose* .......................... 7,100 156,200
Central Parking ............................. 4,000 115,000
Oakley* ..................................... 5,700 193,800
ThermoLase* ................................. 4,500 116,437
-----------
581,437
-----------
DRUGS AND HEALTH CARE -- 9.8%
AmeriSource Health* ......................... 3,630 119,790
Clintrials Research* ........................ 3,730 75,532
Community Psychiatric Centers ............... 8,885 108,841
National Surgery Centers* ................... 2,200 50,050
Omnicare .................................... 4,200 187,950
Parexel International* ...................... 9,000 306,000
Protein Design Labs* ........................ 3,050 70,150
Total Renal Care Holdings* .................. 6,400 188,800
Vivra* ...................................... 4,800 120,600
-----------
1,227,713
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-21 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
------ -----
ELECTRONICS -- 16.2%
Cognex* ..................................... 9,060 $ 317,100
Credence Systems* ........................... 5,640 128,310
Cypress Semiconductor* ...................... 10,900 138,975
Electro Scientific Industries* .............. 4,330 125,029
Electroglas* ................................ 5,620 141,905
Information Storage Devices* ................ 8,400 92,400
Lam Research* ............................... 3,960 180,675
Lattice Semiconductor* ...................... 3,170 103,619
Microchip Technology* ....................... 3,000 109,875
Sanmina* .................................... 3,270 170,040
Semitool* ................................... 1,400 18,113
Silicon Valley Group* ....................... 1,000 25,313
Tencor Instruments* ......................... 4,600 112,125
Ultratech Stepper* .......................... 3,100 79,825
Vicor * ..................................... 8,760 174,105
Xilinx* ..................................... 2,200 66,825
Zilog* ...................................... 1,000 36,625
-----------
2,020,859
-----------
FARM EQUIPMENT -- 0.7%
AGCO ........................................ 1,710 87,210
-----------
FINANCIAL SERVICES -- 5.9%
Commerce Bancorp ............................ 2,500 55,156
First Investors Financial Services Group* ... 3,900 32,175
First Savings Bank of Washington* ........... 3,700 48,562
Flushing Financial* ......................... 3,300 50,325
GCR Holdings* ............................... 2,600 58,175
Jayhawk Acceptance* ......................... 8,300 77,813
Klamath First Bancorp* ...................... 3,500 47,469
Leasing Solutions* .......................... 3,900 58,988
T. Rowe Price ............................... 2,425 118,825
Roosevelt Financial Group ................... 7,300 140,525
Statewide Financial* ........................ 3,800 49,400
-----------
737,413
-----------
FOOD AND BEVERAGES -- 0.6%
Canandaigua Wine (Class A)* ................. 2,175 71,231
-----------
GAMING -- 0.9%
GTECH Holdings* ............................. 4,200 109,200
-----------
INSURANCE -- 1.4%
Capmac Holdings* ............................ 500 12,562
First Commonwealth * ........................ 6,200 159,650
-----------
172,212
-----------
MEDICAL PRODUCTS AND TECHNOLOGY -- 2.1%
Dentsply International ...................... 4,485 179,120
Sybron International* ....................... 3,280 77,900
-----------
257,020
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-22 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares
or
Principal
Amount Value
------ -----
OIL AND GAS -- 1.9%
Falcon Drilling* ............................ 7,200 shs. $ 106,650
Pogo Producing .............................. 4,510 127,408
-----------
234,058
-----------
RESTAURANTS -- 1.3%
Consolidated Products* ...................... 2,411 36,014
Longhorn Steaks* ............................ 7,000 126,875
-----------
162,889
-----------
RETAIL TRADE -- 0.9%
Casey's General Store ....................... 5,295 115,497
-----------
SPECIALTY CHEMICALS -- 1.7%
Minerals Technologies ....................... 3,700 135,050
Sealed Air* ................................. 2,780 78,188
-----------
213,238
-----------
TRANSPORTATION -- 0.8%
Eagle USA Airfreight* ....................... 4,000 104,500
-----------
UTILITIES -- 1.9%
California Energy* .......................... 12,060 235,170
-----------
Total Common Stocks (Cost $11,329,213) ...... 11,819,790
REPURCHASE AGREEMENTS -- 12.0% (Cost $1,500,000)
HSBC Securities, Inc. 5%, maturing 1/3/1996
collateralized by:
$1,480,000 U.S. Treasury Notes 6 7/8%,
3/31/1997 with a fair market value
of $1,532,677 ............................. $ 1,500,000 1,500,000
-----------
Total Investments -- 106.8%
(Cost $12,829,213) ........................ 13,319,790
Other Assets Less Liabilities -- (6.8)% ..... (843,679)
-----------
Net Assets -- 100.0% ........................ $12,476,111
===========
SELIGMAN HENDERSON GLOBAL PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 93.5%
BANKING -- 9.8%
Banco de Santander (Spain) .................. 1,279 $ 64,000
Deutsche Bank (Germany) ..................... 962 45,605
Malayan Banking (Malaysia) .................. 3,500 29,500
Royal Bank of Scotland (UK) ................. 5,500 50,016
Siam Commercial Bank (Thailand) ............. 3,100 40,857
Societe Generale (France) ................... 556 68,558
Sumitomo Trust Banking (Japan) .............. 4,000 56,425
United Overseas Bank (Singapore) ............ 5,684 54,662
-----------
409,623
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-23 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
BUILDING MATERIALS -- 2.7%
LaFarge Coppee (France) ..................... 855 $ 54,946
Siam Cement (Thailand) ...................... 700 38,793
Uralita (Spain) ............................. 2,134 19,288
-----------
113,027
-----------
CHEMICALS -- 2.8%
Bayer (Germany) ............................. 206 54,608
Norsk Hydro (Norway) ........................ 1,006 42,208
Toyo Ink Manufacturing (Japan) .............. 4,000 19,710
-----------
116,526
-----------
CONSUMER PRODUCTS -- 5.2%
CSK (Japan) ................................. 2,000 62,415
KAO (Japan) ................................. 3,000 37,101
Nestle (Switzerland) ........................ 54 59,709
Unilever (UK) ............................... 2,900 59,540
-----------
218,765
-----------
DRUGS AND HEALTH CARE -- 1.3%
Roche Holdings (Switzerland) ................ 7 55,351
-----------
ELECTRONICS -- 8.6%
Farnell Electronics (UK) .................... 4,300 47,979
Olivetti (Italy) ............................ 43,461 34,840
Pioneer Electronics (Japan) ................. 6,000 109,565
Samsung Electronics+ (South Korea) .......... 1,000 58,250
Toshiba (Japan) ............................. 14,000 109,430
-----------
360,064
-----------
ENGINEERING -- 0.6%
Siebe (UK) .................................. 2,000 24,643
-----------
FINANCE AND INSURANCE -- 8.3%
Assicurazione Generali (Italy) .............. 2,513 60,847
AXA (France) ................................ 936 62,953
Internationale Nederlanden Group (Netherlands) 966 64,400
Mitsui Marine & Fire (Japan) ................ 8,000 56,889
Nomura Securities (Japan) ................... 2,000 43,478
Zurich Versicherung (Switzerland) ........... 193 57,699
-----------
346,266
-----------
INDUSTRIAL GOODS & SERVICES -- 3.1%
BBC Brown Boveri (Switzerland) .............. 55 63,865
Cie Generale des Eaux (France) .............. 652 64,967
-----------
128,832
-----------
LEISURE AND HOTELS -- 1.4%
Granada Group (UK) .......................... 6,000 60,057
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-24 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares Value
------ -----
MANUFACTURING -- 5.7%
Adidas (Germany) ............................ 589 $ 31,080
Caradon (UK) ................................ 10,000 30,339
FKI Babcock (UK) ............................ 16,125 41,289
Gadjah Tunggal (Indonesia) .................. 76,000 42,795
Tokyo Steel Manufacturing (Japan) ........... 1,000 18,357
Yamaha (Japan) .............................. 4,000 71,884
-----------
235,744
-----------
MEDIA -- 5.5%
News Corp. (Australia) ...................... 7,204 38,419
Nippon Television Network (Japan) ........... 110 29,333
Reed Elsevier (Netherlands) ................. 4,660 62,017
Reuters Holdings (UK) ....................... 5,000 45,780
WPP Group (UK) .............................. 22,000 55,991
-----------
231,540
-----------
METALS -- 3.7%
Hindalco Industries (GDRs) (India) .......... 500 17,000
Mitsubishi Materials (Japan) ................ 11,000 56,860
Sumitomo Metal Industries (Japan) ........... 21,000 63,507
Sumitomo Sitix (Japan) ...................... 1,000 18,164
-----------
155,531
-----------
PAPER AND PACKAGING -- 1.1%
Stora Kopparbergs (Sweden) .................. 3,854 46,152
-----------
RESOURCES -- 5.4%
British Petroleum (UK) ...................... 5,700 47,678
Broken Hill Proprietary (Australia) ......... 4,861 68,600
ELF Aquitaine (France) ...................... 784 57,652
MIM Holdings (Australia) .................... 16,384 22,635
YPF Sociedad Anomima (ADRs) (Argentina) ..... 1,400 30,275
-----------
226,840
-----------
RESTAURANTS -- 0.8%
Denny's (Japan) ............................. 1,000 33,333
-----------
RETAILING -- 5.5%
Aoyama Trading (Japan) ...................... 600 19,130
Carrefour Supermarche (France) .............. 85 51,469
Joshin Denki (Japan) ........................ 2,000 26,087
Karstadt (Germany) .......................... 101 41,342
Tesco (UK) .................................. 14,300 65,909
Tsutsumi Jewelry (Japan) .................... 500 24,976
-----------
228,913
-----------
- ----------
See notes to financial statements.
-- P-25 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
SHIPBUILDING -- 2.2%
Jurong Shipyard (Singapore) ................. 9,000 shs. $ 69,363
Kvaerner Industries (Norway) ................ 713 23,842
-----------
93,205
-----------
SUPPORT SERVICES -- 0.7%
Rentokil (UK) ............................... 5,900 30,672
-----------
TELECOMMUNICATIONS -- 7.1%
Grupo Carso (ADRs)*+ (Mexico) ............... 1,000 10,669
Hong Kong Telecommunications (Hong Kong) .... 29,400 52,470
L.M. Ericsson (Series B) (Sweden) ........... 3,040 59,529
Nippon Telegraph & Telephone (Japan) ........ 15 121,015
Tele Danmark (Series B) (Denmark) ........... 1,004 54,695
-----------
298,378
-----------
TOBACCO -- 1.6%
B.A.T. Industries (UK) ...................... 7,500 66,050
-----------
TRANSPORTATION -- 8.0%
East Japan Railway (Japan) .................. 25 121,256
Lufthansa (Germany) ......................... 365 50,437
Mitsui O.S.K. Lines (Japan) ................. 20,000 63,961
Perusahaan Otomobil Nasional (Malaysia) ..... 10,000 35,250
Swire Pacific (Hong Kong) ................... 8,000 62,076
-----------
332,980
-----------
UTILITIES -- 0.8%
Iberdrola (Spain) ........................... 3,486 31,794
-----------
MISCELLANEOUS -- 1.6%
Roussel (France) ............................ 383 64,790
-----------
Total Common Stocks (Cost $3,661,623) ....... 3,909,076
-----------
CONVERTIBLE BONDS -- 1.0%
ELECTRONICS -- 0.4%
Teco Electronics & Machinery (Taiwan) 2 3/4%,
4/15/2004 ................................... $ 20,000 15,675
-----------
MANUFACTURING -- 0.6%
Gujurat Ambuja Cement (India) 3 1/2%, 6/30/1999 20,000 26,900
-----------
Total Convertible Bonds (Cost $43,724) ...... 42,575
-----------
Total Investments -- 94.5% (Cost $3,705,347). 3,951,651
Other Assets Less Liabilities -- 5.5% ....... 231,578
-----------
Net Assets -- 100.0% ........................ $ 4,183,229
===========
- ----------
* Non-income producing security.
+ Rule 144A security.
See notes to financial statements.
-- P-26 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
Shares Value
------ -----
COMMON STOCKS -- 91.5%
ADVERTISING -- 1.4%
DIMAC* (US) ................................. 965 $ 26,296
Heritage Media (Class A)* (US) .............. 1,140 29,213
Katz Media Group* (US) ...................... 800 14,100
-----------
69,609
-----------
AUTOMOTIVE PARTS MANUFACTURING -- 5.1%
Forsheda (Sweden) ........................... 3,458 54,692
Industria Macchine Auto (Italy) ............. 300 2,021
Kiekert* (Germany) .......................... 700 41,664
Montupet (France) ........................... 439 48,316
Nokian Tyres* (Finland) ..................... 5,000 50,487
Sylea (France) .............................. 655 47,257
-----------
244,437
-----------
BUILDING MATERIALS -- 1.3%
Mulia Industrindo (Indonesia) ............... 8,000 22,567
Polypipe (UK) ............................... 15,000 40,736
-----------
63,303
-----------
BUSINESS SERVICES -- 3.1%
BISYS Group* (US) ........................... 1,000 30,500
Fujitsu Business Systems (Japan) ............ 1,000 26,280
International Business Communications
Holdings (UK) ............................. 7,000 31,068
Nu-Kote Holdings (Class A)*(US) ............. 1,690 28,941
SunGard Data Systems*(US) ................... 1,160 32,625
-----------
149,414
-----------
CAPITAL GOODS -- 1.5%
Fusion Systems* (US) ........................ 800 22,200
Stayer Group* (Italy) ....................... 13,320 21,809
Tsubakimoto Precision (Japan) ............... 2,000 27,633
-----------
71,642
-----------
CHEMICALS -- 1.0%
Chemical Company of Malaysia (Malaysia) ..... 3,000 5,967
Dalloz* (France) ............................ 53 11,018
Toshiba Chemical (Japan) .................... 1,000 8,271
Toyo Ink Manufacturing (Japan) .............. 5,000 24,638
-----------
49,894
-----------
COMMERCIAL SERVICES -- 0.4%
Skilled Engineering (Australia) ............. 7,000 17,781
-----------
COMPUTER SOFTWARE -- 1.0%
Dendrite International* (US) ................ 900 16,425
Synopsys* (US) .............................. 870 33,169
-----------
49,594
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-27 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
CONSTRUCTION AND PROPERTY -- 6.8%
Asas Dunia Berhad (Malaysia) ................ 2,000 $ 5,672
Ashstead Group (UK) ......................... 15,000 40,271
Bau Holdings (Austria) ...................... 1,380 51,746
Bukit Sembawang Estates (Singapore) ......... 1,000 21,919
Danske Traelastkompagni (Denmark) ........... 993 66,950
Higashi Nihon House (Japan) ................. 2,000 32,850
Mitsui Home (Japan) ......................... 2,000 31,884
New Asia Realty ( Hong Kong) ................ 9,000 17,226
Ruberoid (UK) ............................... 13,000 28,848
Tilbury Douglas (UK) ........................ 4,500 31,075
-----------
328,441
-----------
CONSUMER GOODS AND SERVICES -- 5.6%
Apcoa Parking* (Germany) .................... 675 44,217
Canandaigua Wine (Class A)* (US) ............ 1,215 39,791
Central Parking* (US) ....................... 1,000 28,750
Oakley* (US) ................................ 2,000 68,000
Rentsch, Walter Holdings (Switzerland) ...... 67 10,915
St. John Knits (US) ......................... 450 23,906
SITEL* (US) ................................. 1,500 45,750
Sorini (Indonesia) .......................... 2,000 10,103
-----------
271,432
-----------
DRUGS AND HEALTH CARE -- 2.4%
Darya-Varia Lab (Indonesia) ................. 5,000 9,102
Horizon Mental Health Management (US) ....... 1,800 29,925
Parexel International* (US) ................. 1,000 34,000
Protein Design Lab* (US) .................... 1,840 42,320
-----------
115,347
-----------
ELECTRICAL DISTRIBUTION -- 0.7%
Trifast (UK) ................................ 5,600 32,762
-----------
ELECTRONICS -- 5.7%
Credence Systems* (US) ...................... 1,325 30,144
Electro Scientific Industries* (US) ......... 1,890 54,574
Enplas (Japan) .............................. 1,000 18,647
Horiba Instruments (Japan) .................. 2,000 25,894
ISA International (UK) ...................... 16,500 39,176
Lem Holdings (Switzerland) .................. 67 23,630
Otra N.V. (Netherlands) ..................... 3,640 64,515
Sanmina* (US) ............................... 340 17,680
-----------
274,260
-----------
FINANCIAL SERVICES -- 4.6%
Finnveden (Series B)* (Sweden) .............. 3,250 33,289
Fokus Bank (Norway) ......................... 6,500 35,064
Ichiyoshi Securities (Japan) ................ 4,000 27,053
Manhattan Card (Hong Kong) .................. 60,500 25,820
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-28 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
FINANCIAL SERVICES (continued)
Jayhawk Acceptance* (US) .................... 3,200 $ 30,000
T. Rowe Price (US) .......................... 340 16,660
Roosevelt Financial Group (US) .............. 2,400 46,200
World Acceptance* (US) ...................... 900 9,844
-----------
223,930
-----------
GAMING -- 0.7%
Grand Casinos (US) .......................... 600 13,988
GTECH Holdings* (US) ........................ 700 18,200
-----------
32,188
-----------
INDUSTRIAL GOODS & SERVICES -- 1.1%
Angpanneforeningen (Class B) (Sweden) ....... 3,550 54,009
-----------
MANUFACTURING -- 13.9%
AGCO (US) ................................... 400 20,400
Asahi Diamond Industries (Japan) ............ 2,000 28,019
Danto (Japan) ............................... 2,200 27,208
David Brown Group (UK) ...................... 9,357 28,606
Dominick Hunter (UK) ........................ 9,300 47,049
Equipments et Composants pour l'Industrie
Automobile (France) ....................... 380 40,118
Futuris (Australia) ......................... 20,000 19,609
Glory Kogyo (Japan) ......................... 1,000 36,715
Hokushin (Japan) ............................ 2,000 23,768
Iro* (Sweden) ............................... 4,700 53,097
Kalmar Industries (Sweden) .................. 3,563 59,037
Namura Shipbuilding (Japan) ................. 5,000 27,536
Nichicon (Japan) ............................ 2,000 29,372
Opta Food Ingredients (US) .................. 3,700 46,712
Plettac (Germany) ........................... 240 59,311
Sodick (Japan) .............................. 3,000 28,116
Stoves* (UK) ................................ 5,000 20,174
Tsudakoma (Japan) ........................... 4,000 25,121
Wellington Holdings (UK) .................... 9,000 34,637
Yue Yuen Industrial Holdings (Hong Kong) .... 64,000 16,967
-----------
671,572
-----------
MEDIA -- 1.7%
Capital Radio (UK) .......................... 4,500 37,221
Hodder Headline (UK) ........................ 2,700 10,559
Nippon Television Network (Japan) ........... 1,000 11,981
Sistem Televisyen of Malaysia (Malaysia) .... 3,000 10,811
United Video Satellite Group (Class A)* (US) 445 12,126
-----------
82,698
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-29 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
------ -----
MEDICAL PRODUCTS AND TECHNOLOGY -- 2.6%
Hitachi Medical (Japan) ..................... 2,000 $ 28,599
IDX Systems (US) ............................ 800 27,700
Norland Medical Systems (US) ................ 2,000 45,750
Summit Medical Systems* (US) ................ 1,000 21,250
-----------
123,299
-----------
METALS -- 1.4%
Nakayama Steel Works (Japan) ................ 4,000 21,952
Sanyo Special Steel (Japan) ................. 6,000 25,971
Sumitomo Sitix (Japan) ...................... 1,000 18,164
-----------
66,087
-----------
PAPER AND PACKAGING -- 2.6%
Applied Extrusion Technology (US) ........... 3,500 44,188
Bobst AG (Switzerland) ...................... 6 9,359
Rengo (Japan) ............................... 5,000 33,333
Wace Group (UK) ............................. 10,000 38,020
-----------
124,900
-----------
RESOURCES -- 1.6%
California Energy (US) ...................... 2,500 48,750
Nittetsu Mining (Japan) ..................... 3,000 29,855
-----------
78,605
-----------
RESTAURANTS -- 2.7%
Aiya (Japan) ................................ 2,000 25,121
Kentucky Fried Chicken (Japan) .............. 2,000 32,850
Pizza Express (UK) .......................... 11,500 38,726
Sagami Chain (Japan) ........................ 2,000 33,043
-----------
129,740
-----------
RETAILING -- 8.2%
Courts (Singapore) .......................... 11,000 16,800
Fotolabo Club (Switzerland) ................. 175 69,757
Frost Group (UK) ............................ 9,000 27,235
Hamleys (UK) ................................ 6,500 35,204
Hornbach Baumarkt (Germany) ................. 1,530 65,716
Jardine International Motor Holdings (Hong Kong) 16,000 18,209
Jean Pascale (Germany) ...................... 1,612 48,927
Pet City (UK) ............................... 5,100 30,233
Tsutsumi Jewelry (Japan) .................... 1,000 49,952
Xebio (Japan) ............................... 1,000 35,266
-----------
397,299
-----------
SUPPORT SERVICES -- 1.9%
COREstaff* (US) ............................. 2,500 92,188
-----------
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-30 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
TECHNOLOGY -- 5.1%
Amisys Managed Care Systems* (US) ........... 5,000 shs. $ 95,625
Asyst Technologies* (US) .................... 800 28,300
Electronics for Imaging* (US) ............... 940 40,773
Learning Tree International (US) ............ 2,500 39,375
Opal (US) ................................... 2,500 32,500
Photon Dynamics* (US) ....................... 1,500 11,813
-----------
248,386
-----------
TELECOMMUNICATIONS -- 1.0%
Arch Communications Group* (US) ............. 1,100 26,469
Loxley (Thailand) ........................... 1,000 20,326
-----------
46,795
-----------
TRANSPORTATION -- 2.4%
Comfort Group (Singapore) ................... 20,000 16,970
Eagle USA Airfreight* (US) .................. 3,000 78,375
Iino Kaiun* (Japan) ......................... 4,000 22,725
-----------
118,070
-----------
MISCELLANEOUS -- 4.0%
BT Industries (Sweden) ...................... 5,000 54,227
BUT (France) ................................ 210 11,342
Technip* (France) ........................... 923 63,395
Thorkild Kristensen (Denmark) ............... 1,252 66,779
-----------
195,743
-----------
Total Common Stocks (Cost $4,264,531)........ 4,423,425
-----------
CONVERTIBLE BONDS -- 0.1% (Cost $6,313)
MANUFACTURING -- 0.1%
Gujurat Ambuja Cement (India)
3 1/2%, 6/30/1999 ......................... $ 5,000 6,725
-----------
Total Investments -- 91.6% (Cost $4,270,844). 4,430,150
Other Assets Less Liabilities -- 8.4% ....... 406,466
-----------
Net Assets -- 100.0% ........................ $ 4,836,616
===========
- ----------
* Non-income producing security.
See notes to financial statements.
-- P-31 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Principal
Amount Value
------ -----
CORPORATE BONDS -- 91.2%
BROADCASTING -- 0.2%
Allbritton Communications 1 1/2%, 8/15/2004 . $ 7,000 $ 7,394
-----------
CABLE SYSTEMS -- 14.9%
Comcast 10 5/8%, 7/15/2012 .................. 100,000 113,375
Le Groupe Videotron Ltee 10 5/8%, 2/15/2005.. 100,000 107,125
People's Choice Television
0% (13 1/8%**), 6/1/2004 .................. 100,000 57,750
Rogers Cable Systems 11%, 12/1/2015 ......... 100,000 108,000
United International 0% (14%#), 11/15/1999 .. 100,000 62,500
-----------
448,750
-----------
CELLULAR -- 3.5%
Centennial Cellular 10 1/8%, 5/15/2005 ...... 100,000 105,250
-----------
CHEMICALS -- 3.6%
Arcadian Partners 10 3/4%, 5/1/2005 ........ 50,000 55,250
NL Industries 11 3/4%, 10/15/2003 ........... 50,000 53,625
-----------
108,875
-----------
CONSUMER PRODUCTS -- 3.5%
Williamhouse-Regency 13%, 11/15/2005+ ....... 100,000 105,500
-----------
ENERGY--7.0%
TransTexas Gas 11 1/2%, 6/15/2002 ........... 100,000 103,750
United Meridian 10 3/8%, 10/15/2005 ......... 100,000 106,250
-----------
210,000
-----------
FINANCIAL SERVICES -- 2.7%
Olympic Financial 13%, 5/1/2000 ............. 75,000 82,125
-----------
GAMING/HOTEL -- 14.1%
Aztar 11%, 10/1/2002 ........................ 50,000 50,125
Casino Magic Finance 11 1/2%, 10/15/2001 .... 75,000 64,875
Grand Casinos 10 1/8%, 12/1/2003 ............ 50,000 52,375
Stratosphere 14 1/4%, 5/15/2002 ............. 50,000 56,750
Trump Hotels & Casino Resorts Funding
15 1/2%, 6/15/2005 ........................ 50,000 53,750
Trump Plaza Funding 10 7/8%, 6/15/2001 ...... 50,000 52,000
Trump Taj Mahal 11.35%, 11/15/1999 .......... 100,000 95,113
-----------
424,988
-----------
HEALTH CARE -- 4.1%
Dade International 13%, 2/1/2005 ............ 20,000 22,400
Regency Health Services 9 7/8%, 10/15/2002 .. 100,000 99,750
-----------
122,150
-----------
- ----------
+ 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.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
------ -----
LEISURE -- 3.4%
Premier Parks 12%, 8/15/2003 ................ $ 100,000 $ 103,000
-----------
MANUFACTURING -- 3.4%
Howmet 10%, 12/1/2003+ ...................... 50,000 52,750
RBX 11 1/4%, 10/15/2005+ .................... 50,000 49,250
-----------
102,000
-----------
PAGING -- 6.3%
Metrocall 10 3/8%, 10/1/2007 ................ 100,000 106,500
ProNet 11 7/8%, 6/15/2005 ................... 75,000 82,875
-----------
189,375
-----------
RETAILING -- 2.1%
Thrifty Payless 11 3/4%, 4/15/2003 .......... 10,000 10,875
Thrifty Payless 12 1/4%, 4/15/2004 .......... 50,000 53,750
-----------
64,625
-----------
SUPERMARKETS -- 5.1%
Pathmark Stores 11 5/8%, 6/15/2002 .......... 100,000 101,000
Ralph's Grocery 10.45%, 6/15/2004 ........... 50,000 50,875
-----------
151,875
-----------
TELECOMMUNICATIONS -- 10.8%
Fonorola 12 1/2%, 8/15/2002 ................. 100,000 105,500
IXC Communications 13%, 10/1/2005+ .......... 100,000 106,500
Mobile Telecommunication Technologies
13 1/2%, 12/15/2002 ....................... 100,000 111,500
-----------
323,500
-----------
THEATRES -- 3.0%
Plitt Theatres 10 7/8%, 6/15/2004 ........... 100,000 90,500
-----------
UTILITIES -- 3.5%
Midland Cogeneration Venture 11 3/4%, 7/23/2005 100,000 105,257
-----------
Total Corporate Bonds -- (Cost $2,681,011) .. 2,745,164
-----------
CONVERTIBLE BONDS -- 3.0%
COMPUTERS AND RELATED SERVICES -- 1.6%
EMC 4 1/4%, 1/1/2001 ........................ 50,000 49,750
-----------
SEMICONDUCTORS -- 1.4%
Integrated Device Technologies 5 1/2%, 6/1/2002 50,000 41,125
-----------
Total Convertible Bonds (Cost $97,640) ...... 90,875
-----------
Total Investments -- 94.2% (Cost $2,778,651). 2,836,039
Other Assets Less Liabilitie s -- 5.8% ...... 173,383
-----------
Net Assets -- 100.0% ......................... $ 3,009,422
===========
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-33 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Principal
Amount Value
------ -----
CONVERTIBLE SECURITIES -- 41.0%
SUBORDINATED CONVERTIBLE BONDS -- 23.9%
CONSUMER GOODS AND SERVICES -- 2.4%
Unifi 6%, 3/15/2002 ......................... $ 300,000 $ 302,250
-----------
DRUGS AND HEALTH CARE -- 1.7%
Pharmaceutical Marketing Services
6 1/4%, 2/1/2003+ ........................... 235,000 211,500
-----------
ELECTRONICS -- 1.4%
Micropolis 6%, 3/15/2012 .................... 350,000 173,250
-----------
ENERGY -- 3.8%
Kelley Oil & Gas 8 1/2%, 4/1/2000 ........... 285,000 159,244
Sante Fe Pipelines 11.162%, 8/15/2010 ....... 250,000 316,875
-----------
476,119
-----------
ENTERTAINMENT/PUBLISHING -- 0.6%
Time Warner 8 1/4%, 1/10/2015 ............... 76,750 79,436
-----------
INSURANCE -- 1.9%
Trenwick Group 6%, 12/15/1999 ............... 200,000 236,000
-----------
MACHINERY -- 1.6%
Cooper Industries 7.05%, 1/1/2015 ........... 200,000 207,000
-----------
RETAILING -- 1.4%
CML Group 5 1/2%, 1/15/2003 ................. 250,000 181,250
-----------
TECHNOLOGY -- 1.6%
EMC 4 1/4%, 1/1/2001 ........................ 200,000 199,000
-----------
TELECOMMUNICATIONS -- 3.3%
LDDS Communications 5%, 8/15/2003 ........... 250,000 263,750
Network Equipment 7 1/4%, 5/15/2014 ......... 147,000 153,431
-----------
417,181
-----------
TRANSPORTATION -- 0.8%
Airborne Freight 6 3/4%, 8/15/2001 .......... 100,000 100,500
-----------
MISCELLANEOUS/DIVERSIFIED -- 3.4%
MascoTech 4 1/2%,12/15/2003 ................. 300,000 234,750
TriMas 5%, 8/1/2003 ......................... 200,000 196,000
-----------
430,750
-----------
Total Subordinated Convertible Bonds
(Cost $3,129,412) ........................... 3,014,236
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-34 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Shares or
Principal
Amount Value
------ -----
CONVERTIBLE PREFERRED STOCKS -- 17.1%
BANKING AND FINANCE -- 2.1%
National City $4.00 ......................... 3,300 shs. $ 259,875
-----------
ENERGY -- 2.5%
Snyder Oil (Class A) 6% ..................... 5,000 98,750
Unocal $3.50+ ............................... 4,000 214,500
-----------
313,250
-----------
INSURANCE -- 4.4%
Alexander & Alexander (Series A) $3.625+ .... 1,500 74,812
American General (Series A) $3.00 ........... 4,500 235,688
St. Paul Capital 6% ......................... 4,500 253,125
-----------
563,625
-----------
PAPER -- 1.1%
International Paper Capital 5 1/4%+ ......... 3,000 136,125
-----------
RETAILING -- 0.7%
TJX $3.125 .................................. 2,000 89,500
-----------
TELECOMMUNICATIONS -- 1.6%
Mobile Telecommunication Technologies $2.25+ 6,500 208,000
-----------
TRANSPORTATION -- 4.0%
GATX $3.875 ................................. 5,000 287,500
Sea Containers $4.00 ........................ 5,000 218,750
-----------
506,250
-----------
MISCELLANEOUS -- 0.7%
Corning (Delaware) 6% ....................... 1,700 85,638
-----------
Total Convertible Preferred Stocks
(Cost $2,143,676) ........................... 2,162,263
-----------
Total Convertible Securities (Cost $5,273,088) 5,176,499
-----------
CORPORATE BONDS -- 20.4%
AUTOMOTIVE -- 5.7%
Chrysler Financial 6 1/2%, 6/15/1998 ........ $ 200,000 203,392
Ford Motor Credit 6 3/4%, 8/15/2008 ......... 250,000 258,437
General Motors Acceptance 5 1/4%, 2/1/1999... 250,000 249,486
-----------
711,315
-----------
BANKING AND FINANCE -- 6.9%
Capital One Bank 8 1/8%, 3/1/2000 ........... 250,000 269,225
First USA Bank 5 3/4%, 1/15/1999 ............ 100,000 99,565
MBNA 6.15%, 10/1/2003 ....................... 500,000 498,158
-----------
866,948
-----------
INSURANCE -- 2.2%
AEGON N.V. 8%, 8/15/2006 .................... 250,000 282,160
-----------
TELECOMMUNICATIONS -- 3.3%
United Telecommunications 9 1/2%, 4/1/2003... 350,000 415,430
-----------
- ----------
+ Rule 144A security.
See notes to financial statements.
-- P-35 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued) December 31, 1995
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount
or Shares Value
--------- -----
MISCELLANEOUS -- 2.3%
Tenneco Credit 9 5/8%, 8/15/2001 ............ $ 250,000 $ 290,565
-----------
Total Corporate Bonds (Cost $2,438,843) ..... 2,566,418
-----------
COMMON STOCKS -- 16.1%
ELECTRIC AND GAS UTILITIES -- 5.0%
Atlanta Gas and Light ....................... 6,000 shs. 118,500
CINergy ..................................... 9,718 297,614
Entergy ..................................... 2,600 76,050
FPL Group ................................... 3,000 139,125
-----------
631,289
-----------
FOOD -- 2.7%
ConAgra ..................................... 8,141 335,807
-----------
INSURANCE -- 0.5%
GCR Holdings ................................ 3,000 67,125
-----------
RETAILING -- 0.2%
Kmart ....................................... 3,200 23,200
-----------
STEEL -- 1.1%
Inland Steel Industries ..................... 5,406 135,826
-----------
TRANSPORTATION -- 2.4%
Consolidated Freightways .................... 10,000 265,000
NFC ......................................... 20,000 44,072
-----------
309,072
-----------
UTILITIES/TELECOMMUNICATIONS -- 4.2%
Bell Atlantic ............................... 4,000 267,500
GTE ......................................... 3,000 132,000
Network Equipment Technologies .............. 4,857 132,964
-----------
532,464
-----------
Total Common Stocks (Cost $1,596,384) ....... 2,034,783
-----------
U.S. GOVERNMENT SECURITIES -- 8.5%
U.S. Treasury Notes 7 3/4%, 12/31/1999 ...... $ 500,000 542,968
U.S. Treasury Notes 6 1/2%, 5/15/2005 ....... 500,000 532,969
-----------
Total U.S. Government Securities
(Cost $1,052,426) ........................... 1,075,937
-----------
REPURCHASE AGREEMENTS -- 7.9% (Cost $1,000,000)
HSBC Securities, Inc. 5%, maturing 1/3/1996
collateralized by:
$985,000 U.S. Treasury Notes
6 7/8%, 3/31/1997, with a fair
market value of $1,020,059 ................. 1,000,000 1,000,000
-----------
Total Investments -- 93.9% (Cost $11,360,741) 11,853,637
Other Assets Less Liabilities -- 6.1% ........ 765,843
-----------
Net Assets -- 100.0% ......................... $12,619,480
===========
- ----------
See notes to financial statements.
-- P-36 --
<PAGE>
This page intentionally left blank.
-- P-37 --
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman
Seligman Cash Common Communications Fixed Income
Capital Management Stock and Information Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common Stocks ............................... $ 8,852,808 $ -- $ 24,293,752 $ 37,526,656 $ --
Convertible Securities ...................... -- -- 320,000 -- --
U.S. Government Securities
and Agencies ............................ -- 3,551,271 -- -- 2,235,999
Corporate Bonds ............................. -- -- -- -- 1,452,658
Bankers' Acceptances ........................ -- 198,047 -- -- --
Certificates of Deposit ..................... -- 500,013 -- -- --
Commercial Paper ............................ -- 2,924,595 -- -- --
Fixed Time Deposits ......................... -- -- -- 1,000,000 --
Repurchase Agreements ....................... 1,000,000 600,000 4,000,000 -- 500,000
------------ ------------ ------------ ------------ ------------
Total Investments ........................... 9,852,808 7,773,926 28,613,752 38,526,656 4,188,657
Cash ........................................ 570,808 72,616 1,905,436 649,128 118,589
Receivable for securities sold .............. 157,325 -- 494,985 933,765 123,164
Receivable for Capital Stock sold ........... 49,426 -- 126,453 297,973 --
Interest and dividends receivable ........... 3,283 3,017 54,449 1,158 80,257
Receivable from associated companies ........ -- 433 -- -- 747
------------ ------------ ------------ ------------ ------------
Total Assets ................................ 10,633,650 7,849,992 31,195,075 40,408,680 4,511,414
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ............ 1,321,967 -- 2,302,454 1,920,699 --
Payable for Capital Stock repurchased ....... 584 37,549 30,347 -- 320
Accrued expenses, taxes, and other .......... 17,583 12,932 26,229 45,888 14,546
------------ ------------ ------------ ------------ ------------
Total Liabilities ........................... 1,340,134 50,481 2,359,030 1,966,587 14,866
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 9,293,516 $ 7,799,511 $ 28,836,045 $ 38,442,093 $ 4,496,548
============ ============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ....................... $ 623 $ 7,800 $ 1,868 $ 2,848 $ 431
Additional paid-in capital .................. 7,851,238 7,792,109 21,923,363 42,278,896 4,241,656
Undistributed (dividends in excess of)
net investment income ................... (3,378) -- 2,933 (563) (3,378)
Accumulated net realized gain (loss) ....... 4,578 (398) 218,698 -- (97,373)
Net unrealized appreciation
(depreciation) of investments ........... 1,440,455 -- 6,744,425 (3,839,088) 355,212
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies ...... -- -- (55,242) -- --
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 9,293,516 $ 7,799,511 $ 28,836,045 $ 38,442,093 $ 4,496,548
============ ============ ============ ============ ============
Shares of Capital Stock
($.001 par value) outstanding ............ 623,294 7,799,909 1,868,083 2,848,022 430,753
============ ============ ============ ============ ============
Net Asset Value per share ................... $ 14.91 $ 1.00 $ 15.44 $ 13.50 $ 10.44
============ ============ ============ ============ ============
</TABLE>
- ----------
See notes to financial statements.
-- P-38 --
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
December 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Henderson Seligman
Seligman Henderson Global Smaller High-Yield Seligman
Frontier Global Companies Bond Income
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common Stocks ............................... $ 11,819,790 $ 3,909,076 $ 4,423,425 $ -- $ 2,034,783
Convertible Securities ...................... -- 42,575 6,725 90,875 5,176,499
U.S. Government Securities
and Agencies ............................ -- -- -- -- 1,075,937
Corporate Bonds ............................. -- -- -- 2,745,164 2,566,418
Bankers' Acceptances ........................ -- -- -- -- --
Certificates of Deposit ..................... -- -- -- -- --
Commercial Paper ............................ -- -- -- -- --
Fixed Time Deposits ......................... -- -- -- -- --
Repurchase Agreements ....................... 1,500,000 -- -- -- 1,000,000
------------ ------------ ------------ ------------ ------------
Total Investments ........................... 13,319,790 3,951,651 4,430,150 2,836,039 11,853,637
Cash ........................................ 761,034 178,499 577,847 118,140 569,704
Receivable for securities sold .............. 207,174 16,857 18,418 -- --
Receivable for Capital Stock sold ........... 79,769 86,790 22,629 11,213 68,781
Interest and dividends receivable ........... 2,341 5,467 3,756 51,126 153,218
Receivable from associated companies ........ -- 1,390 3,910 3,069 --
------------ ------------ ------------ ------------ ------------
Total Assets ................................ 14,370,108 4,240,654 5,056,710 3,019,587 12,645,340
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ............ 1,874,745 39,829 204,052 -- --
Payable for Capital Stock repurchased ....... -- -- -- -- 4,975
Accrued expenses, taxes, and other .......... 19,252 17,596 16,042 10,165 20,885
------------ ------------ ------------ ------------ ------------
Total Liabilities ........................... 1,893,997 57,425 220,094 10,165 25,860
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 12,476,111 $ 4,183,229 $ 4,836,616 $ 3,009,422 $ 12,619,480
============ ============ ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ....................... $ 920 $ 338 $ 414 $ 287 $ 1,194
Additional paid-in capital .................. 11,979,541 3,930,575 4,672,140 2,952,157 12,128,778
Undistributed (dividends in excess of)
net investment income ................... (563) (1,917) (563) (410) (3,378)
Accumulated net realized gain (loss) ....... 6,161 -- -- -- --
Net unrealized appreciation
(depreciation) of investments ........... 490,052 274,637 200,393 57,388 489,410
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies ...... (20,404) (35,768) -- 3,476
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 12,476,111 $ 4,183,229 $ 4,836,616 $ 3,009,422 $ 12,619,480
============ ============ ============ ============ ============
Shares of Capital Stock
($.001 par value) outstanding ............ 919,934 337,685 414,437 286,688 1,194,484
============ ============ ============ ============ ============
Net Asset Value per share ................... $ 13.56 $ 12.39 $ 11.67 $ 10.50 $ 10.56
============ ============ ============ ============ ============
</TABLE>
- ----------
See notes to financial statements.
-- P-39 --
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Statements of Operations For the year ended December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman
Seligman Cash Common Communications Fixed Income
Capital Management Stock and Information Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends* ............................ $ 50,339 $ -- $ 566,641 $ 6,609 $ --
Interest .............................. 15,565 251,624 132,407 3,041 260,351
----------- ----------- ----------- ----------- -----------
Total investment income ............... 65,904 251,624 699,048 9,650 260,351
----------- ----------- ----------- ----------- -----------
Expenses:
Management fee ........................ 28,551 18,365 94,380 123,216 15,262
Auditing fee .......................... 10,267 10,267 10,267 12,517 10,267
Legal fee ............................. 3,408 3,408 3,408 3,408 3,408
Shareholder reports and
communications ..................... 2,445 2,445 2,445 2,203 2,445
Directors' fees and expenses .......... 2,323 2,323 2,323 2,285 2,323
Registration .......................... 2,103 1,943 4,618 8,118 1,618
Custody and related services .......... -- -- 7,967 -- --
Miscellaneous ......................... 1,448 1,163 2,983 4,178 2,338
----------- ----------- ----------- ----------- -----------
Total expenses before
reimbursement ...................... 50,545 39,914 128,391 155,925 37,661
Reimbursement of expenses ............. (7,713) (39,914) -- -- (14,766)
----------- ----------- ----------- ----------- -----------
Total expenses after
reimbursement ...................... 42,832 -- 128,391 155,925 22,895
----------- ----------- ----------- ----------- -----------
Net investment income (loss) .......... 23,072 251,624 570,657 (146,275) 237,456
----------- ----------- ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions:
Net realized gain (loss) on investments 673,773 (4) 3,074,117 2,629,030 (16,342)
Net realized gain (loss) from foreign
currency transactions .............. -- -- (85) -- --
Net change in unrealized appreciation/
depreciation of investments ........ 996,837 -- 2,044,468 (3,857,599) 449,551
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies ............... -- -- (55,202) -- --
----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments
and foreign currency
transactions ....................... 1,670,610 (4) 5,063,298 (1,228,569) 433,209
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ............. $ 1,693,682 $ 251,620 $ 5,633,955 $(1,374,844) $ 670,665
=========== =========== =========== =========== ===========
- ----------
* Net of foreign tax withheld as follows: $ 69 $ -- $ 4,659 $ -- $ --
**For the period May 1, 1995 (commencement of operations) to December 31, 1995.
See notes to financial statements.
</TABLE>
-- P-40 --
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
For the year ended December 31, 1995
- ------------------------------------------------------------------------------------------------------------------
Seligman Seligman Henderson Seligman
Seligman Henderson Global Smaller High-Yield Seligman
Frontier Global Companies Bond Income
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends* ............................ $ 5,811 $ 41,548 $ 15,129 $ -- $ 186,426
Interest .............................. 9,720 18,345 19,766 64,165 517,963
----------- ----------- ----------- ----------- -----------
Total investment income ............... 15,531 59,893 34,895 64,165 704,389
----------- ----------- ----------- ----------- -----------
Expenses:
Management fee ........................ 29,219 25,312 17,210 3,941 45,797
Auditing fee .......................... 12,517 10,267 12,517 11,350 10,267
Legal fee ............................. 3,408 3,528 3,694 12,507 3,408
Shareholder reports and
communications ..................... 2,203 2,203 2,203 2,203 2,445
Directors' fees and expenses .......... 2,285 2,285 2,285 1,629 2,323
Registration .......................... 3,118 2,153 2,118 1,538 2,618
Custody and related services .......... -- 31,847 21,303 25 --
Miscellaneous ......................... 819 8,511 4,685 1,237 3,762
----------- ----------- ----------- ----------- -----------
Total expenses before
reimbursement ...................... 53,569 86,106 66,015 34,430 70,620
Reimbursement of expenses ............. (16,555) (51,823) (42,122) (28,926) (1,910)
----------- ----------- ----------- ----------- -----------
Total expenses after
reimbursement ...................... 37,014 34,283 23,893 5,504 68,710
----------- ----------- ----------- ----------- -----------
Net investment income (loss) .......... (21,483) 25,610 11,002 58,661 635,679
----------- ----------- ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions:
Net realized gain (loss) on investments 489,661 (39,978) 147,181 4,799 639,249
Net realized gain (loss) from foreign
currency transactions .............. -- 82,120 4,162 -- (43)
Net change in unrealized appreciation/
depreciation of investments ........ 481,517 277,417 197,114 57,388 591,277
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated
in foreign currencies ............... -- (48,118) (36,341) -- 3,496
----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments
and foreign currency
transactions ....................... 971,178 271,441 312,116 62,187 1,233,979
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ............. $ 949,695 $ 297,051 $ 323,118 $ 120,848 $ 1,869,658
=========== =========== =========== =========== ===========
- ----------
* Net of foreign tax withheld as follows $ -- $ 4,863 $ 2,124 $ -- $ 425
**For the period May 1, 1995 (commencement of operations) to December 31, 1995.
See notes to financial statements.
</TABLE>
-- P-41 --
<PAGE>
<TABLE>
<CAPTION>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman
Capital Portfolio Cash Management Portfolio Common Stock Portfolio
---------------------------- ---------------------------- ----------------------------
Year Ended December 31 Year Ended December 31 Year Ended December 31
---------------------------- ---------------------------- ----------------------------
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income ............. $ 23,072 $ 5,975 $ 251,624 $ 127,857 $ 570,657 $ 515,701
Net realized gain (loss) on
investments ................... 673,773 642,271 (4) (240) 3,074,117 1,108,365
Net realized gain (loss) from
foreign currency transactions . -- -- -- -- (85) 20
Net change in unrealized
appreciation/depreciation
of investments ................ 996,837 (912,365) -- -- 2,044,468 (1,604,789)
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies ............ -- -- -- -- (55,202) (40)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations ............... 1,693,682 (264,119) 251,620 127,617 5,633,955 19,257
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income ............. (26,627) (7,465) (251,624) (127,857) (564,862) (517,958)
Realized gain on investments ...... (666,241) (641,977) -- -- (2,855,419) (1,108,564)
------------ ------------ ------------ ------------ ------------ ------------
Decrease in net assets from
distributions ................. (692,868) (649,442) (251,624) (127,857) (3,420,281) (1,626,522)
------------ ------------ ------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares .. 3,644,132 3,619,176 8,777,333 2,322,638 12,083,995 9,040,524
Investment of dividends ........... 26,627 7,465 251,624 127,857 564,862 517,958
Shares issued in payment of gain
distributions ................. 666,241 641,977 -- -- 2,855,419 1,108,564
------------ ------------ ------------ ------------ ------------ ------------
Total ............................. 4,337,000 4,268,618 9,028,957 2,450,495 15,504,276 10,667,046
------------ ------------ ------------ ------------ ------------ ------------
Cost of shares repurchased ........ (1,986,672) (3,298,449) (4,459,283) (2,322,134) (9,049,478) (10,753,287)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets
from capital share transactions 2,350,328 970,169 4,569,674 128,361 6,454,798 (86,241)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets . 3,351,142 56,608 4,569,670 128,121 8,668,472 (1,693,506)
Net Assets:
Beginning of period ............... 5,942,374 5,885,766 3,229,841 3,101,720 20,167,573 21,861,079
------------ ------------ ------------ ------------ ------------ ------------
End of period ..................... $ 9,293,516 $ 5,942,374 $ 7,799,511 $ 3,229,841 $ 28,836,045 $ 20,167,573
============ ============ ============ ============ ============ ============
</TABLE>
- ----------------
** Commencement of investment operations.
See notes to financial statements.
P-42
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman
Communications and Fixed Income
Information Portfolio Securities Portfolio
Year 10/11/94** Year Ended December 31
Ended to ----------------------------
12/31/95 12/31/94 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ............. $ (146,275) $ (442) $ 237,456 $ 179,900
Net realized gain (loss) on
investments ................... 2,629,030 -- (16,342) (81,031)
Net realized gain (loss) from
foreign currency transactions . -- -- -- --
Net change in unrealized
appreciation/depreciation (3,857,599) 18,511 449,551 (225,410)
of investments ................
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies ............ -- -- -- --
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations ............... (1,374,844) 18,069 670,665 (126,541)
------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income ............. -- -- (239,920) (181,555)
Realized gain on investments ...... (2,505,145) -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from
distributions ................. (2,505,145) -- (239,920) (181,555)
------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares .. 40,177,251 476,552 1,663,791 2,264,201
Investment of dividends ........... -- -- 239,920 181,555
Shares issued in payment of gain
distributions ................. 2,505,145 -- -- --
------------ ------------ ------------ ------------
Total ............................. 42,682,396 476,552 1,903,711 2,445,756
------------ ------------ ------------ ------------
Cost of shares repurchased ........ (854,935) -- (1,444,282) (2,306,325)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from capital share transactions 41,827,461 476,552 459,429 139,431
------------ ------------ ------------ ------------
Increase (decrease) in net assets . 37,947,472 494,621 890,174 (168,665)
Net Assets:
Beginning of period ............... 494,621 -- 3,606,374 3,775,039
------------ ------------ ------------ ------------
End of period ..................... $ 38,442,093 $ 494,621 $ 4,496,548 $ 3,606,374
============ ============ ============ ============
<CAPTION>
Seligman
Henderson
Seligman Global Portfolio
Frontier Portfolio -----------------------------
----------------------------
Year 10/11/94** Year Ended December 31
Ended to -----------------------------
12/31/95 12/31/94 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ............. $ (21,483) $ (106) $ 25,610 $ 13,397
Net realized gain (loss) on
investments ................... 489,661 -- (39,978) 9,138
Net realized gain (loss) from
foreign currency transactions . -- -- 82,120 3,259
Net change in unrealized
appreciation/depreciation 481,517 9,060 277,417 (44,914)
of investments ................
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies ............ -- -- (48,118) 29,924
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations ............... 949,695 8,954 297,051 10,804
------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income ............. -- -- (48,883) (9,661)
Realized gain on investments ...... (463,105) -- (27,517) (17,511)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions ................. (463,105) -- (76,400) (27,172)
------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares .. 11,465,250 159,997 2,562,936 1,317,845
Investment of dividends ........... -- -- 48,883 9,661
Shares issued in payment of gain
distributions ................. 463,105 -- 27,517 17,511
------------ ------------ ------------ ------------
Total ............................. 11,928,355 159,997 2,639,336 1,345,017
------------ ------------ ------------ ------------
Cost of shares repurchased ........ (107,785) -- (453,063) (200,626)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
from capital share transactions 11,820,570 159,997 2,186,273 1,144,391
------------ ------------ ------------ ------------
Increase (decrease) in net assets . 12,307,160 168,951 2,406,924 1,128,023
Net Assets:
Beginning of period ............... 168,951 -- 1,776,305 648,282
------------ ------------ ------------ ------------
End of period ..................... $ 12,476,111 $ 168,951 $ 4,183,229 $ 1,776,305
============ ============ ============ ============
</TABLE>
P-43
<PAGE>
<TABLE>
<CAPTION>
Seligman Porfolios , Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman
Henderson Seligman Seligman
Global Smaller High-Yield Income Portfolio
Companies Portfolio Bond Portfolio ----------------
------------------- --------------
Year 10/11/94** 5/1/95* Year Ended December 31
Ended to to ----------------------
12/31/95 12/31/94 12/31/95 1995 1994
-------- -------- -------- ---- ----
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income .................... $ 11,002 $ 517 $ 58,661 $ 635,679 $ 678,957
Net realized gain (loss) on
investments .......................... 147,181 -- 4,799 639,249 (19,113)
Net realized gain (loss) from
foreign currency transactions ........ 4,162 (58) -- (43) 10
Net change in unrealized
appreciation/depreciation
of investments ....................... 197,114 3,279 57,388 591,277 (1,298,035)
Net change in unrealized
appreciation/depreciation on
translation of assets and
liabilities denominated in
foreign currencies ................... (36,341) 573 -- 3,496 (20)
------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets
from operations ...................... 323,118 4,311 120,848 1,869,658 (638,201)
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
Net investment income .................... (20,531) (537) (60,233) (644,348) (685,315)
Realized gain on investments ............. (148,062) -- (4,951) (636,880) --
------------ ------------ ------------ ------------ ------------
Decrease in net assets from
distributions ........................ (168,593) (537) (65,184) (1,281,228) (685,315)
------------ ------------ ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares ......... 4,665,264 127,199 3,188,047 5,410,208 4,595,781
Investment of dividends .................. 20,531 537 60,233 644,348 685,315
Shares issued in payment of gain
distributions ........................ 148,062 -- 4,951 636,880 --
------------ ------------ ------------ ------------ ------------
Total .................................... 4,833,857 127,736 3,253,231 6,691,436 5,281,096
------------ ------------ ------------ ------------ ------------
Cost of shares repurchased ............... (283,276) -- (299,473) (4,710,663) (5,127,246)
------------ ------------ ------------ ------------ ------------
Increase in net assets from
capital share transactions ........... 4,550,581 127,736 2,953,758 1,980,773 153,850
------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets ........ 4,705,106 131,510 3,009,422 2,569,203 (1,169,666)
Net Assets:
Beginning of period ...................... 131,510 -- -- 10,050,277 11,219,943
------------ ------------ ------------ ------------ ------------
End of period ............................ $ 4,836,616 $ 131,510 $ 3,009,422 $ 12,619,480 $ 10,050,277
============ ============ ============ ============ ============
</TABLE>
- ----------------
* Commencement of operations.
** Commencement of investment operations.
See notes to financial statements
P-44
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management
investment company consisting of ten separate portfolios (the "Portfolios"),
"Seligman Capital Portfolio" ("Capital Portfolio"), "Seligman Cash Management
Portfolio" ("Cash Management Portfolio"), "Seligman Common Stock Portfolio"
("Common Stock Portfolio"), "Seligman Communications and Information Portfolio"
("Communications and Information Portfolio"), "Seligman Fixed Income Securities
Portfolio" ("Fixed Income Securities Portfolio"), "Seligman Frontier Portfolio"
("Frontier Portfolio"), "Seligman Henderson Global Portfolio" ("Global
Portfolio"), "Seligman Henderson Global Smaller Companies Portfolio" ("Global
Smaller Companies Portfolio"), "Seligman High-Yield Bond Portfolio" ("High-Yield
Bond Portfolio") and "Seligman Income Portfolio" ("Income Portfolio"), each
designed to meet different investment goals. Shares of the Fund are currently
provided as the investment medium for Canada Life of America Variable Annuity
Account 2 ("CLVA-2") and Canada Life of America Annuity Account 3 ("CLVA-3"),
each established by Canada Life Insurance Company of America ("Canada Life").
CLVA-2 is registered as a unit investment trust under the Investment Company Act
of 1940 (the "1940 Act") and funds variable annuity contracts (the "CLVA-2
Contracts") issued by Canada Life and distributed by Seligman Financial
Services, Inc. CLVA-3 is not registered or regulated as an investment company
under the 1940 Act in reliance on the exemption provided in Section 3(c)(11) of
the 1940 Act and funds variable annuity contracts (the "CLVA-3 Contracts")
issued by Canada Life and distributed by Seligman Financial Services, Inc.
CLVA-3 Contracts may be purchased only by pension or profit-sharing employee
benefit plans that satisfy the requirements for qualification set forth in
Section 401 of the Internal Revenue Code of 1986, as amended. Shares of the Fund
are also provided as the investment medium for other variable annuity accounts
established by Canada Life or its affiliates ("Canada Life Separate Accounts").
Shares of the Fund (except Communications and Information Portfolio, Frontier
Portfolio, Global Portfolio, Global Smaller Companies Portfolio, and High-Yield
Bond Portfolio) are also provided as the investment medium for Seligman Mutual
Benefit Plan (the "Mutual Benefit Plan") 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 U.S. Government securities, bonds, convertible
securities, and stocks are valued at the most current market values or, in
their absence, at fair market value determined in accordance with
procedures approved by the Board of Directors. Securities traded on
national exchanges are valued at the last sales prices or, in their absence
and in the case of over-the-counter securities, a mean of closing bid and
asked prices. Short-term holdings maturing in 60 days or less are valued at
amortized cost. Investments held by Cash Management Portfolio are valued
using the amortized cost method which approximates fair value.
b. The Portfolios may invest up to 10% of their total assets in foreign
securities (except Global Portfolio and Global Smaller Companies Portfolio
which may invest up to 100% of their total assets in foreign securities).
Investments in foreign securities will usually be denominated in foreign
currencies, and the Portfolios may temporarily hold funds in foreign
currencies. The Portfolios may also invest in U.S. dollar-denominated
American Depository Receipts ("ADRs"), American Depository Shares ("ADSs"),
European Depository Receipts ("EDRs"), and Global Depository Receipts
("GDRs"). ADRs and ADSs are issued by domestic banks or trust companies and
evidence ownership of securities issued by foreign corporations. ADRs and
ADSs are traded on United States exchanges or over-the-counter and are not
included in the 10% limitation. EDRs and GDRs are receipts similar to ADRs
and ADSs and are typically issued by foreign banks or trust companies and
traded in Europe. The books and records of the Portfolios are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and
liabilities, at the closing daily rate of exchange as reported by a
pricing service;
(ii) purchases and sales of investment securities, income and
expenses, at the rate of exchange prevailing on the respective dates
of such transactions.
The net asset values per share of Portfolios which invest in securities
denominated in foreign currencies will be affected by changes in currency
exchange rates. Changes in foreign currency exchange rates may also affect
the value of dividends and interest earned, gains and losses realized on
sales of securities and net investment income and gains, if any, to be
distributed to shareholders of the Portfolios. The rate of exchange between
the U.S. dollar and other currencies is determined by the forces of supply
and demand in the foreign exchange markets.
Net realized foreign exchange gains (losses) arise from sales of portfolio
securities, sales and maturities of short-term securities, sales of foreign
currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on
the Portfolios' books, and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of portfolio securities and other foreign
currency denominated assets and liabilities at period end, resulting from
changes in exchange rates.
The Portfolios separate that portion of the results of operations resulting
from changes in the foreign exchange rates from the fluctuations arising
from changes in the market prices of securities held in the Portfolios.
Similarly, the Portfolios separate the effect of changes in foreign
exchange rates from the fluctuations arising from changes in the market
prices of portfolio securities sold during the period.
P-45
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
c. The Global Portfolio and Global Smaller Companies Portfolio may enter
into forward currency contracts in order to hedge their exposure to changes
in foreign currency exchange rates on their foreign portfolio holdings, or
other amounts receivable or payable in foreign currency. A forward contract
is a commitment to purchase or sell a foreign currency at a future date at
a negotiated forward rate. Certain risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms
of their contracts. The contracts are valued daily at current exchange
rates and any unrealized gain or loss is included in net unrealized
appreciation or depreciation on translation of assets and liabilities
denominated in foreign currencies and forward currency contracts. The gain
or loss, if any, arising from the difference between the settlement value
of the forward contract and the closing of such contract, is included in
net realized gain or loss from foreign currency transactions. For federal
income tax purposes, certain open forward currency contracts are treated as
sold on the last day of the fiscal year and any gains or losses are
recognized immediately. As a result, the amount of income distributable to
shareholders may vary from the amount recognized for financial statement
purposes.
d. The Portfolios' policy is to comply with the requirements of the
Internal Revenue Code applicable to Regulated Investment Companies and to
distribute substantially all of their taxable net income and net gain
realized to shareholders.
e. Investment transactions are recorded on trade dates. Interest income is
recorded on the accrual basis. The Portfolios amortize market discounts and
premiums on purchases of portfolio securities. Dividends receivable and
payable are recorded on ex-dividend dates. The Portfolios may enter into
repurchase agreements with commercial banks and with broker/dealers deemed
to be creditworthy by the Manager. Securities purchased subject to
repurchase agreements are deposited with the Portfolios' custodians and,
pursuant to the terms of the repurchase agreement, must have an aggregate
market value greater than or equal to the repurchase price plus accrued
interest at all times. Procedures have been established to monitor, on a
daily basis, the market value of the repurchase agreements' underlying
securities to ensure the existence of the proper level of collateral. The
repurchase agreements held at December 31, 1995, by various portfolios,
were purchased on December 27, 1995 and matured on or before January 3,
1996.
f. Expenses directly attributable to each Portfolio are charged to such
Portfolio, and expenses that are applicable to more than one Portfolio are
allocated among them.
g. The treatment for financial statement purposes of distributions made
during the year from net investment income or net realized gains may differ
from their ultimate treatment for federal income tax purposes. These
differences primarily are caused by differences in the timing of the
recognition of certain components of income, expense or capital gain and
the recharacterization of foreign exchange gains or losses to either
ordinary income or realized capital gain for federal income tax purposes.
Where such differences are permanent in nature, they are reclassified in
the components of net assets based on their ultimate characterization for
federal income tax purposes. Any such reclassification will have no effect
on net assets, results of operations, or net asset values per share of the
Portfolios.
2. Until April 15, 1993, the Fund functioned exclusively as the investment
vehicle for the separate account options of the Mutual Benefit Plan issued by
Mutual Benefit Life Insurance Company in Rehabilitation ("Mutual Benefit Life").
On July 16, 1991, the Superior Court of New Jersey (the "Court") entered an
Order appointing the New Jersey Insurance Commissioner as Rehabilitator of
Mutual Benefit Life. The Commissioner was granted immediate exclusive possession
and control of, and title to, the business and assets of Mutual Benefit Life,
including the assets and liabilities of the Mutual Benefit Plan.
On November 10, 1993, the Court issued an Order of Confirmation which provided
for implementation of the Third Amended Plan of Rehabilitation of Mutual Benefit
Life (the "Plan of Rehabilitation"). On April 29, 1994, the Plan of
Rehabilitation was implemented. Substantially all of the assets and liabilities
of Mutual Benefit Life were transferred to MBL Life. In addition, the assets and
liabilities of the Mutual Benefit Plan were transferred to a separate account of
MBL Life. As a separate account, the assets and liabilities of the Mutual
Benefit Plan are maintained separate and apart from MBL Life's other assets and
liabilities. Also, as of April 29, 1994, the ownership of the stock of MBLLife
was transferred to a Trust. The Commissioner is the sole Trustee of the Trust.
MBL Life has decided that it will not accept applications for new contracts nor
will it accept additional purchase payments under existing contracts. In
addition, requests for transfers of amounts to the Fixed Accumulation Account
from the Plan will not be accepted.
P-46
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended December31, 1995, were as follows:
Portfolio Purchases Sales
--------- --------- -----
Capital $ 9,827,294 $ 8,320,193
Common Stock 12,084,887 12,040,847
Communications
and Information 53,884,929 15,466,766
Fixed Income Securities 4,126,842 3,924,761
Frontier 14,387,330 3,698,729
Global 3,182,368 942,185
Global Smaller Companies 4,806,988 818,870
High-Yield Bond 3,628,139 858,011
Income 6,011,862 5,187,899
Identified cost of investments sold is used for both financial statement and
federal income tax purposes.
At December 31, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio
securities, including the effects of foreign currency transactions, were as
follows:
Unrealized Unrealized
Portfolio Appreciation Depreciation
--------- ------------ ------------
Capital $ 1,812,197 $ 371,742
Common Stock 7,041,926 352,723
Communications
and Information 1,453,741 5,292,829
Fixed Income Securities 355,387 175
Frontier 1,150,964 660,912
Global 332,449 86,145
Global Smaller Companies 412,876 253,570
High-Yield Bond 74,070 16,682
Income 1,009,354 516,458
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 the necessary personnel and facilities, exclusive of and
in addition to those retained by the Fund. Compensation of all officers of the
Fund, all directors of the Fund who are employees or consultants of the Manager,
and all personnel of the Fund and the Manager is paid by the Manager. The
Manager's fee is calculated daily and payable monthly, equal to 0.40%, on an
annual basis, of Capital, 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 and the Global
Smaller Companies 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 Seligman Henderson Co. (the "Subadviser"), a 50% owned
affiliate of the Manager. 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 Cash Management Portfolio, Global and
Global Smaller Companies Portfolios). The Manager, at its discretion, has
elected to waive all of its fee for, and reimburse all of the expenses of, the
Cash Management Portfolio until such time as the Manager determines. Effective
May 1, 1995 the Manager and Subadviser have agreed to reimburse expenses, other
than management fee, which exceed 0.40% (previously 0.20%) per annum of the
average daily net assets of Global and Global Smaller Companies Portfolios. For
the year ended December31, 1995, the Manager reimbursed expenses and/or waived
fees of $7,713, $39,914, $14,766, $16,555, and $1,910, for the Capital, Cash
Management, Fixed Income Securities, Frontier, and Income Portfolios,
respectively. For the same period, the Manager and Subadviser waived all of
their fees and the Subadviser reimbursed expenses totalling $51,823 and $42,122
for the Global Portfolio and Global Smaller Companies Portfolio, respectively.
For the period from May 1, 1995 (commencement of operations) to December31,
1995, the Manager reimbursed expenses and waived fees totalling $28,926 for the
High-Yield Bond Portfolio.
P-47
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the CLVA-2 contracts and an affiliate of the Manager, received
concessions of $370,407 from Canada Life 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 $36,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive fees
may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The annual cost of such fees and interest is included in directors'
fees and expenses, and the accumulated balance thereof at December31, 1995, is
included in other liabilities. Deferred fees and the related accrued interest
are not deductible for federal income tax purposes until such amounts are paid.
5. At December31, 1995, there were 20,000,000 shares of Capital Stock authorized
for each of the Capital, Common Stock, Communications and Information, Fixed
Income Securities, Frontier, Global, Global Smaller Companies, High-Yield Bond,
and Income Portfolios, and 100,000,000 shares for the Cash Management Portfolio,
all at a par value of $.001 per share.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
Capital Portfolio Cash Management Portfolio Common Stock Portfolio
----------------------- --------------------------- ------------------------
Year Ended December 31 Year Ended December 31 Year Ended December 31
----------------------- --------------------------- ------------------------
1995 1994 1995 1994 1995 1994
-------- -------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares ....................... 249,315 250,641 8,777,333 2,322,638 774,737 602,357
Shares issued in payment of
dividends ......................... 1,811 587 251,624 127,857 36,751 37,506
Shares issued in payment
of gain distributions ............. 45,323 50,470 -- -- 185,779 80,272
-------- -------- ---------- ---------- -------- --------
Total ................................ 296,449 301,698 9,028,957 2,450,495 997,267 720,135
-------- -------- ---------- ---------- -------- --------
Shares repurchased ................... (141,073) (227,501) (4,459,283) (2,322,134) (592,244) (716,170)
-------- -------- ---------- ---------- -------- --------
Increase in shares ................... 155,376 74,197 4,569,674 128,361 405,023 3,965
======== ======== ========== ========== ======== ========
<CAPTION>
Fixed Income
Communications and Securities Portfolio
Information Portfolio --------------------------- Frontier Portfolio
----------------------- ------------------------
Year 10/11/94** Year Ended December 31 Year 10/11/94**
Ended to --------------------------- Ended to
12/31/95 12/31/94 1995 1994 12/31/95 12/31/94
-------- -------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares ....................... 2,671,618 47,368 163,349 229,957 877,490 15,970
Shares issued in payment
of dividends ...................... -- -- 23,069 19,564 -- --
Shares issued in payment
of gain distributions ............. 187,370 -- -- -- 34,820 --
--------- -------- ---------- ---------- -------- --------
Total ................................ 2,858,988 47,368 186,418 249,521 912,310 15,970
-------- -------- ---------- ---------- -------- --------
Shares repurchased ................... (58,334) -- (144,731) (233,817) (8,346) --
--------- -------- ---------- ---------- -------- --------
Increase in shares ................... 2,800,654 47,368 41,687 15,704 903,964 15,970
========= ======== ========== ========== ======== =========
<CAPTION>
High-Yield
Global Portfolio Global Smaller Bond Income Portfolio
---------------------- Companies Portfolio Portfolio ----------------------
------------------- ----------
Year Ended December 31 Year 10/11/94** 5/1/95* Year Ended December 31
---------------------- Ended to to ----------------------
1995 1994 12/31/95 12/31/94 12/31/95 1995 1994
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Sale of shares ...................... 214,972 114,731 411,729 12,701 309,043 504,495 423,636
Shares issued in payment
of dividends ..................... 3,942 855 1,778 53 5,742 61,075 68,876
Shares issued in payment
of gain distributions ............ 2,219 1,550 12,819 -- 472 60,368 --
-------- -------- -------- ------ -------- -------- --------
Total ............................... 221,133 117,136 426,326 12,754 315,257 625,938 492,512
-------- -------- -------- ------ -------- -------- --------
Shares repurchased .................. (40,136) (17,445) (24,643) -- (28,569) (439,030) (470,827)
-------- -------- -------- ------ -------- -------- --------
Increase in shares .................. 180,997 99,691 401,683 12,754 286,688 186,908 21,685
======== ======== ======== ====== ======== ======== ========
</TABLE>
P-48
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from 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.
<TABLE>
<CAPTION>
Capital Portfolio
-----------------------------------------------------------------------
Year Ended December 31
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ................... $12.700 $14.950 $16.980 $17.740 $11.230
------- ------- ------- ------- -------
Net investment income (loss) ......................... 0.048 0.015 0.021 (0.022) 0.079
Net realized and unrealized gain (loss) on investments 3.385 (0.699) 1.928 1.202 6.547
------- ------- ------- ------- -------
Increase (decrease) from investment operations ....... 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 ........... 2.210 (2.250) (2.030) (0.760) 6.510
------- ------- ------- ------- -------
Net asset value, end of year ......................... $14.910 $12.700 $14.950 $16.980 $17.740
======= ======= ======= ======= =======
Total return based on net asset value ................ 27.17% (4.59)% 11.65% 6.80% 59.05%
Ratios/Supplemental Data:
Expenses to average net assets ....................... 0.60% 0.60% 0.71% 0.91% 0.60%
Net investment income (loss) to average net assets ... 0.32% 0.10% 0.09% (0.14)% 0.56%
Portfolio turnover ................................... 122.20% 67.39% 65.30% 54.95% 31.44%
Net assets, end of year (000's omitted) .............. $9,294 $5,942 $5,886 $5,497 $5,812
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ............... $0.035 $(0.036) $(0.003) $(0.035)
Ratios:
Expenses to average net assets .................... 0.71% 0.96% 0.83% 1.37%
Net investment income (loss) to average net assets 0.21% (0.26)% (0.03)% (0.21)%
<CAPTION>
Cash Management Portfolio
-----------------------------------------------------------------------
Year Ended December 31
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ................... $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income ................................ 0.055 0.040 0.030 0.035 0.056
Dividends paid ....................................... (0.055) (0.040) (0.030) (0.035) (0.056)
------- ------- ------- ------- -------
Net asset value, end of year ......................... $1.000 $1.000 $1.000 $1.000 $1.000
======= ======= ======= ======= =======
Total return based on net asset value ................ 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 .......... 5.48% 3.98% 2.96% 3.50% 5.49%
Net assets, end of year (000's omitted) .............. $7,800 $3,230 $3,102 $4,230 $5,849
Without management fee waiver and
expense reimbursement:++
Net investment income per share ...................... $0.046 $0.025 $0.019 $0.025 $0.048
Ratios:
Expenses to average net assets .................... 0.87% 1.48% 1.07% 0.97% 0.83%
Net investment income to average net assets ....... 4.61% 2.50% 1.89% 2.53% 4.66%
</TABLE>
- ----------
++ The Manager, at its discretion, reimbursed expenses and/or waived management
fees for certain periods presented.
P-49
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stock Portfolio
----------------------
Year Ended December 31
---------------------------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ..... $13.780 $14.980 $15.600 $14.740 $11.580
----------- ----------- ----------- ----------- -----------
Net investment income (loss) ............. 0.349 0.365 0.392 0.346 0.362
Net realized and unrealized gain (loss)
on investments ......................... 3.400 (0.356) 1.479 1.445 3.459
----------- ----------- ----------- ----------- -----------
Increase from investment operations ...... 3.749 0.009 1.871 1.791 3.821
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)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value 1.660 (1.200) (0.620) 0.860 3.160
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ........... $15.440 $13.780 $14.980 $15.600 $14.740
=========== =========== =========== =========== ===========
Total return based on net asset value .... 27.28% 0.04% 11.94% 12.14% 33.16%
Ratios/Supplemental Data:
Expenses to average net assets ........... 0.54% 0.60% 0.55% 0.56% 0.60%
Net investment income (loss) to
average net assets ..................... 2.42% 2.45% 2.10% 2.21% 2.63%
Portfolio turnover ....................... 55.48% 15.29% 10.70% 12.57% 27.67%
Net assets, end of period (000's omitted) $28,836 $20,168 $21,861 $24,987 $26,103
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ... $0.361 $0.350
Ratios:
Expense to average net assets .......... 0.62% 0.71%
Net investment income (loss) to
average net assets ................... 2.43% 2.52%
</TABLE>
<TABLE>
<CAPTION>
Communications and
Information Portfolio
---------------------
10/11/94**
Year Ended to
12/31/95 12/31/94
-------- --------
<S> <C> <C>
Net asset value, beginning of period ..... $10.440 $10.000
----------- --------
Net investment income (loss) ............. 0.000 (0.016)
Net realized and unrealized gain (loss)
on investments ......................... 4.015 0.456
----------- --------
Increase from investment operations ...... 4.015 0.440
Dividends paid ........................... -- --
Distributions from net realized gain ..... (0.955) --
----------- --------
Net increase (decrease) in net asset value 3.060 0.440
----------- --------
Net asset value, end of period ........... $13.500 $10.440
=========== ========
Total return based on net asset value .... 38.55% 4.40
Ratios/Supplemental Data:
Expenses to average net assets ........... 0.95% 0.95%+
Net investment income (loss) to
average net assets ..................... (0.89)% (0.95)%+
Portfolio turnover ....................... 96.62% --
Net assets, end of period (000's omitted) $38,442 $495
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ... (0.436)
Ratios:
Expense to average net assets .......... 13.96%+
Net investment income (loss) to
average net assets ................... (13.96)%+
</TABLE>
<TABLE>
<CAPTION>
Fixed Income Securities Portfolio
---------------------------------
Year Ended December 31
------------------------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ...... $9.270 $10.110 $10.660 $10.990 $10.310
---------- ---------- ---------- ---------- ----------
Net investment income (loss) .............. 0.605 0.499 0.713 0.706 0.798
Net realized and unrealized gain (loss)
on investments .......................... 1.171 (0.841) 0.142 (0.092) 0.699
---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment
operations .............................. 1.776 (0.342) 0.855 0.614 1.497
Dividends paid ............................ (0.606) (0.498) (0.711) (0.772) (0.817)
Distributions from net realized gain ...... -- -- (0.694) (0.172)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value 1.170 (0.840) (0.550) (0.330) 0.680
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $10.440 $9.270 $10.110 $10.660 $10.990
========== ========== ========== ========== ==========
Total return based on net asset value ..... 19.18% (3.39)% 7.98% 5.60% 14.58%
Ratios/Supplemental Data:
Expenses to average net assets ............ 0.60% 0.60% 0.74% 1.00% 0.60%
Net investment income (loss) to
average net assets ...................... 6.22% 5.12% 5.41% 6.22% 7.30%
Portfolio turnover ........................ 114.42% 237.23% 33.21% 23.40% 6.34%
Net assets, end of period (000's omitted) . $4,497 $3,606 $3,775 $4,750 $5,369
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share .... $0.571 $0.430 $0.675 $0.712
Ratios:
Expense to average net assets ........... 0.99% 1.31% 1.07% 1.42%
Net investment income (loss) to
average net assets .................... 5.83% 4.41% 5.08% 6.48%
</TABLE>
<TABLE>
Frontier Portfolio
------------------
10/11/94**
Year Ended to
12/31/95 12/31/94
-------- --------
<S> <C> <C>
Net asset value, beginning of period ...... $10.580 10.000
----------- --------
Net investment income (loss) .............. (0.001) (0.012)
Net realized and unrealized gain (loss)
on investments .......................... 3.512 0.592
----------- --------
Increase (decrease) from investment
operations .............................. 3.511 0.580
Dividends paid ............................ -- --
Distributions from net realized gain ...... -- (0.531)
----------- --------
Net increase (decrease) in net asset value 2.980 0.580
----------- --------
Net asset value, end of period ............ $13.560 $10.580
=========== ========
Total return based on net asset value ..... 33.28% 5.80%
Ratios/Supplemental Data:
Expenses to average net assets ............ 0.95% 0.95%+
Net investment income (loss) to
average net assets ...................... (0.55)% (0.70)%+
Portfolio turnover ........................ 106.48% --
Net assets, end of period (000's omitted) . $12,476 $169
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share .... $(0.019) $(1.319)
Ratios:
Expense to average net assets ........... 1.37% 40.47%+
Net investment income (loss) to
average net assets .................... (0.97)% (40.22)%+
- ----------
** Commencement of investment operations.
+Annualized.
++The Manager, at its discretion, reimbursed expenses and/or waived management
fees for certain periods presented.
P-50
</TABLE>
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Portfolio
-----------------------------------
Year Ended December 31 5/3/93*
--------------------- to
1995 1994 12/31/93
---- ---- --------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ........ $11.340 $11.370 $10.000
---------- ---------- --------
Net investment income ....................... 0.154 0.131 0.021
Net realized and unrealized gain (loss) on
investments ............................... 0.896 (0.306) 1.518
Net realized and unrealized gain (loss) from
foreign currency transactions ............. 0.236 0.325 (0.099)
---------- ---------- --------
Increase from investment operations ......... 1.286 0.150 1.440
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 .. 1.050 (0.030) 1.370
---------- ---------- --------
Net asset value, end of period .............. $12.390 $11.340 $11.370
========== ========== ========
Total return based on net asset value ........ 11.34% 1.32% 14.40%
Ratios/Supplemental Data:
Expenses to average net assets ............... 1.35% 1.20% 1.20%+
Net investment income to average net assets .. 1.01% 1.17% 1.30%+
Portfolio turnover ........................... 41.40% 47.34% 2.82%
Net assets, end of period (000's omitted) ... $4,183 $1,776 $648
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ....... $0.001 $(0.419) $(1.004)
Ratios:
Expenses to average net assets ............ 3.40% 6.12% 17.94%+
</TABLE>
<TABLE>
<CAPTION>
Global Smaller
Companies Portfolio
-------------------------------
10/11/94**
Year Ended to
12/31/95 12/31/94
-------- --------
<S> <C> <C>
Net asset value, beginning of period ........ $10.310 $10.000
---------------- --------------
Net investment income ....................... 0.051 0.058
Net realized and unrealized gain (loss) on
investments ............................... 2.037 0.266
Net realized and unrealized gain (loss) from
foreign currency transactions ............. (0.301) 0.029
---------------- --------------
Increase from investment operations ......... 1.787 0.353
Dividends paid .............................. (0.052) (0.043)
Distributions from net realized gain ........ (0.375) .--
---------------- --------------
Net increase (decrease) in net asset value .. 1.360 0.310
---------------- --------------
Net asset value, end of period .............. $11.670 $10.310
================ ==============
Total return based on net asset value ........ 17.38% 3.53%
Ratios/Supplemental Data:
Expenses to average net assets ............... 1.39% 1.20%+
Net investment income to average net assets .. 0.64% 3.14
Portfolio turnover ........................... 55.65% --
Net assets, end of period (000's omitted) ... $4,837 $132
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share ....... $(0.051) $(1.225)
Ratios:
Expenses to average net assets ............ 3.84% 37.25%+
Net investment loss to average net assets . (1.81)% (32.91)%+
</TABLE>
<TABLE>
<CAPTION>
High-Yield Bond
Portfolio
---------
5/1/95*
to
12/31/95
--------
<S> <C>
Per Share Operating Performance:
Net asset value, beginning of period ........ $10.000
----------
Net investment income ....................... 0.218
Net realized and unrealized gain (loss)
on investments ............................ 0.519
----------
Increase (decrease) from
investment operations ..................... 0.737
Dividends paid .............................. (0.219)
Distributions from net realized gain ........ (0.018)
----------
Net increase (decrease) in net asset value .. 0.500
----------
Net asset value, end of period .............. $10.500
==========
Total return based on net asset value ....... 7.37%
Ratios/Supplemental Data:
Expenses to average net assets .............. 0.70%+
Net investment income to average net assets . 7.46%+
Portfolio turnover .......................... 67.55%
Net assets, end of year (000's omitted) ..... $3,009
Without management fee waiver and
expense reimbursement:++
Net investment income per share ............. $0.117
Ratios:
Expenses to average net assets ............ 4.38%+
Net investment income to average net assets 3.78%+
</TABLE>
<TABLE>
<CAPTION>
Income Portfolio
--------------------------------------------------------------------
Year Ended December 31
--------------------------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $9.970 $11.380 $11.390 $11.250 $9.500
----------- ----------- ----------- ----------- -----------
Net investment income ....................... 0.604 0.689 0.828 0.862 0.896
Net realized and unrealized gain (loss)
on investments ............................ 1.187 (1.369) 0.576 0.896 2.024
----------- ----------- ----------- ----------- -----------
Increase (decrease) from
investment operations ..................... 1.791 (0.680) 1.404 1.758 2.920
Dividends paid .............................. (0.604) (0.730) (0.828) (0.987) (0.904)
Distributions from net realized gain ........ (0.597) .-- (0.586) (0.631) (0.266)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset value .. 0.590 (1.410) (0.010) 0.140 1.750
----------- ----------- ----------- ----------- -----------
Net asset value, end of period .............. $10.560 $9.970 $11.380 $11.390 $11.250
=========== =========== =========== =========== ===========
Total return based on net asset value ....... 17.98% (5.96)% 12.37% 15.72% 30.89%
Ratios/Supplemental Data:
Expenses to average net assets .............. 0.60% 0.60% 0.64% 0.68% 0.60%
Net investment income to average net assets . 5.55% 6.34% 6.40% 7.53% 8.05%
Portfolio turnover .......................... 51.22% 29.76% 38.38% 39.46% 43.67%
Net assets, end of year (000's omitted) ..... $12,619 $10,050 $11,220 $11,363 $11,509
Without management fee waiver and
expense reimbursement:++
Net investment income per share ............. $0.602 $0.670 $0.826 $0.867
Ratios:
Expenses to average net assets ............ 0.62% 0.77% 0.65% 0.93%
Net investment income to average net assets 5.53% 6.17% 6.39% 7.72%
</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.
P-51
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
- --------------------------------------------------------------------------------
The Director and Shareholders,
Seligman Portfolios, Inc.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Seligman Portfolios, Inc. (comprising,
respectively, the Seligman Capital Portfolio, Seligman Cash Management
Portfolio, Seligman Common Stock Portfolio, Seligman Communications and
Information Portfolio, Seligman Fixed Income Securities Portfolio, Seligman
Frontier Portfolio, Seligman Henderson Global Portfolio, Seligman Henderson
Global Smaller Companies Portfolio, Seligman High-Yield Bond Portfolio, and
Seligman Income Portfolio, collectively referred to as the "Fund") as of
December 31, 1995, and the related statements of operations for the year then
ended, the statements of changes in nets assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures include confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting the Seligman Portfolios, Inc. at
December 31, 1995, the results of their operations for the year then ended, the
changes in their net assets, for each of the two years in the period then ended,
and the financial highlights for each of the indicated periods, in conformity
with generally accepted accounting principles.
/s/ Ernst & Young LLP
New York, New York
February 2, 1996
P-52
<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)
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson (2)
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino (1)
President
Managing Director,
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
Daniel J. Charleston
Vice President
Leonard J. Lovito
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
P-53
<PAGE>
