<PAGE>
- ----------------------------
M I D - Y E A R R E P O R T
- ----------------------------
- -------------
SELIGMAN
- -------------
PORTFOLIOS,
- -------------
INC.
- -------------
J%WS
June 30, 1997
<PAGE>
-------------
SELIGMAN
-------------
PORTFOLIOS,
-------------
INC.
-------------
August 1, 1997
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios, Inc., is
pleased to provide the enclosed unaudited financial statements and accompanying
information for Seligman Portfolios, Inc., the underlying investment vehicle for
your policy, for the six months ended June 30, 1997.
Thus far, 1997 has shown great promise for both the domestic economy and the
financial markets. Instead of increasing inflation, the growing economy actually
generated lower producer prices for six consecutive months. The Federal Reserve
Board's decision to leave the federal funds rate unchanged in May also helped
tame inflation fears and gave further support to the already strong financial
markets. Low unemployment and high consumer confidence levels continued, while
consumer spending was relatively restrained.
While low interest rates generally supported the appreciation of the equity
market, investors remained primarily focused on the large, more liquid stocks
with predictable earnings. Consequently, the 25 largest stocks were responsible
for the majority of the equity market's gains. However, beginning in May, the
market's advances broadened to include a greater number of smaller- and
mid-capitalization stocks.
In the fixed-income markets, the enduring absence of inflationary pressures
and the lack of Fed intervention after the March increase prompted a moderate
rally, with bond prices rising and yields falling. After the uncertainties of
the first quarter, when the inflationary outlook was unclear, market
participants became optimistic in the second quarter as the low interest rate
environment persisted. Consequently, the yield on the benchmark 30-year US
Treasury bond fell to 6.78% on June 30, from a high of 7.17% on April 14. The
yield on the benchmark three-month US Treasury bill fell to 5.17% at June 30,
having reached a high of 5.40% on March 21.
The long-term outlook for the US economy and financial markets remains
positive. Productivity improvements, driven in large part by the deployment of
technology, have helped reduce corporate costs and increased profitability.
While the broadening of the market that took place in the second quarter is a
positive trend, market volatility has increased this year, and the possibility
of a short-term correction in the US markets is real.
Internationally, economic growth has improved without bringing any serious
signs of inflation. Overall, monetary conditions for the major economies have
remained quite benign. Only in the UK have we seen any increase in interest
rates. Against this backdrop, international markets have performed strongly thus
far this year, and we expect further progress to be made. In particular, Japan
has made an extremely strong recovery with both the market and the Yen
improving. Our favored regions continue to be Continental Europe, Japan, and the
emerging markets where economic and corporate profit growth has the greatest
potential.
We thank you for your continued confidence in Seligman Portfolios, Inc., and
look forward to serving your investment needs in the years ahead.
Respectfully,
/s/ William C. Morris
-------------------------
William C. Morris
Chairman
J. & W. Seligman & Co. Incorporated
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Largest Portfolio Changes (unaudited)
- -------------------------------------------------------------------------------
During the Six Months Ended June 30, 1997
Principal Amount
or Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN BOND PORTFOLIO
US Government Agencies
Government National Mortgage
Association 7-1/2%, 3/15/2026........ $290,301 $290,301
Corporate Bonds
Anixter 8%, 9/15/2003.................. 200,000 200,000
Barrett Resources
7.55%, 2/1/2007....................... 200,000 200,000
Cott 8-1/2%, 5/1/2007.................. 200,000 200,000
Harman International
7.32%, 7/1/2007....................... 200,000 200,000
Loewen Group International
7-1/2%, 4/15/2001..................... 200,000 200,000
The Money Store
8.05%, 4/15/2002...................... 200,000 200,000
Oryx Energy 8-1/8%, 10/15/2005......... 200,000 200,000
Owens-Illinois 7.85%, 5/15/2004........ 200,000 200,000
Time Warner 9-1/8%, 1/15/2013.......... 200,000 200,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
US Government Securities
US Treasury Bonds 7-7/8%,
2/15/2021............................ $400,000 --
US Treasury Notes 7%,
7/15/2006............................ 800,000 --
Corporate Bonds
AEGON 8%, 8/15/2006.................... 150,000 --
American Home, 7.90%,
2/15/2005............................ 150,000 --
First Union 6.55%, 10/15/2035.......... 200,000 --
Kohls 7-3/8%, 10/15/2011............... 200,000 --
NewPort News 8-5/8%, 12/1/2006......... 200,000 --
Oryx Energy 10%, 4/1/2001.............. 200,000 --
United Telecommunications
9-1/2%, 4/1/2003..................... 150,000 --
Principal Amount
or Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Cardinal Health........................ 4,700 shs. 4,700 shs.
Coca-Cola.............................. 13,300 13,300
Covance................................ 19,200 19,200
IKON Office Solutions.................. 5,200 5,200
Lowe's................................. 6,900 6,900
Newbridge Networks..................... 5,900 5,900
Quantum................................ 5,900 11,800 (1)
Reynolds & Reynolds (Class A).......... 14,400 14,400
US Surgical............................ 6,300 6,300
Universal Health Services (Class B).... 8,100 8,100
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
Guidant................................ 2,600 shs. 1,400 shs.
Home Depot............................. 3,500 --
Illinois Tool Works.................... 2,700 --
Intel.................................. 2,400 --
MGM Grand.............................. 4,700 --
Microsoft.............................. 5,000 --
Saks Holdings.......................... 5,200 --
Seagate Technology..................... 5,000 --
Tencor Instruments..................... 5,000 --
United Healthcare...................... 3,700 --
Principal Amount
or Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
Ahmanson (H.F.)........................ 8,000 shs. 8,000 shs.
CIGNA.................................. 1,800 1,800
GATX................................... 5,000 5,000
Illinois Tool Works.................... 5,000 10,000 (2)
James River............................ 7,000 7,000
Mead................................... 5,500 9,000
QUALCOMM............................... 4,000 4,000
United Technologies.................... 3,900 7,500
Westinghouse Electric.................. 15,000 15,000
Williams Cos. ......................... 9,000 9,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
ALLTEL................................. 11,000 shs. --
Campbell Soup.......................... 2,800 --
Electronic Data Systems................ 5,000 --
First Brands........................... 12,000 --
Great Western Financial................ 5,000 --
PanEnergy.............................. 4,800 --
Sonat.................................. 9,200 --
Teradyne............................... 6,400 --
Xilinx................................. 7,800 --
Convertible Bonds
Masco Tech 4-1/2%, 12/15/2003 $250,000 --
- --------------------------
See footnotes on page P-4.
-- P-1 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Largest Portfolio Changes (unaudited) (continued)
- -------------------------------------------------------------------------------
During the Six Months Ended June 30, 1997
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN COMMUNICATIONS AND
INFORMATION PORTFOLIO
Common Stocks
Advanced Micro Devices................. 56,000 56,000
Altera................................. 23,400 23,400
BMC Software........................... 30,100 30,100
Lattice Semiconductor.................. 23,900 23,900
Novellus Systems....................... 27,600 27,600
Quantum................................ 42,600 68,800 (3)
Read-Rite.............................. 50,500 50,500
Storage Technology..................... 43,300 43,300
Teradyne............................... 36,700 36,700
Western Digital........................ 27,600 40,800 (4)
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
Cabletron Systems...................... 40,000 --
Cisco Systems.......................... 19,000 6,000
Gateway 2000........................... 20,000 --
Intel.................................. 13,000 --
Microsoft.............................. 20,000 --
Simulation Sciences.................... 160,000 --
Sun Microsystems....................... 40,000 --
Tellabs................................ 40,000 --
3Com................................... 25,000 --
U.S. Robotics.......................... 25,000 --
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
Administaff............................ 25,000 25,000
Black Box.............................. 10,800 10,800
Ceridian............................... 16,500 28,400
Corporate EXPRESS...................... 51,000 51,000
DONCASTERS (ADRs)...................... 22,800 22,800
First Commonwealth..................... 45,500 71,700
General Cable.......................... 15,900 15,900
Jacor Communications................... 9,900 14,350
Pittston Brink's Group................. 20,300 20,300
ProMedCo Management.................... 50,000 50,000
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
Amisys Managed Care Systems............ 20,000 --
Drilex International................... 20,000 --
Health Management Associates
(Class A)............................ 17,000 --
Maxim Integrated Products.............. 8,500 --
National Data.......................... 10,150 --
National Surgery Centers............... 7,700 13,050
ONTRACK Data International............. 30,000 --
T. Rowe Price.......................... 7,750 --
Printrak International................. 24,800 --
Watson Pharmaceuticals................. 9,700 10,400
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO
Common Stocks
Boston Scientific...................... 1,000 1,000
Desc (ADRs)............................ 2,200 2,220 (5)
Empresas ICA Sociedad
Controladora (ADRs).................. 3,000 3,000
Essilor International.................. 185 185
HFS.................................... 800 800
HIS.................................... 1,000 1,000
Metro.................................. 590 590
Microsoft.............................. 400 700
MOL Magyar Olaj-es-Gazipari
(GDRs)............................... 2,800 2,800
Travelers Group........................ 800 800
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
Assa Abloy (Series B).................. 1,130 --
CITIC Pacific.......................... 3,000 --
Grupo Carso (ADRs)..................... 1,900 --
Guidant................................ 300 --
Joshin Denki........................... 2,000 --
Kobenhavns Lufthavne................... 190 --
MGM Grand.............................. 400 --
Singapore Press Holdings............... 1,000 --
SMH Neuenberg.......................... 152 --
Societe Industrielle de
Transports Automobiles............... 105 --
- -------------------------
See footnotes on page P-4.
-- P-2 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
During the Six Months Ended June 30, 1997
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN HENDERSON GLOBAL
SMALLER COMPANIES PORTFOLIO
Common Stocks
Administaff............................ 10,000 10,000
Calpine................................ 9,600 9,600
Compdent............................... 6,000 6,000
Corporate EXPRESS...................... 12,000 12,000
IMS International Metal Service........ 860 860
Kardex................................. 484 484
Selecta Group.......................... 920 920
Virbac................................. 1,360 1,360
Zag Industries......................... 5,500 15,000
Preferred Stocks
Gerry Weber International.............. 3,329 4,993 (6)
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
BMC Industries......................... 4,900 --
Fine Host.............................. 4,900 --
Fokus Bank............................. 13,000 --
FPA Medical Management................. 7,000 --
Horizon Mental Health
Management........................... 5,550 (7) --
Kampas-Haus............................ 2,880 --
LoJack................................. 9,800 --
Maxim Integrated Products.............. 1,700 --
Sto (Voting Preference Shares)......... 235 --
Watson Pharmaceuticals................. 3,800 3,600
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN HENDERSON GLOBAL
TECHNOLOGY PORTFOLIO
Common Stocks
Admiral................................ 7,000 7,000
Elec & Eltek International
Holdings............................. 150,000 150,000
EMC.................................... 1,000 1,000
Hirose Electric........................ 600 600
M.M.T. Computing....................... 5,000 5,000
Premier Farnell........................ 3,500 3,500
Rohm................................... 1,000 1,000
Secom.................................. 1,000 1,000
TDK.................................... 1,000 1,000
VERO Group............................. 12,500 12,500
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
America Online......................... 525 --
Cisco Systems.......................... 400 --
Dialogic............................... 1,650 --
Intel.................................. 200 --
Microsoft.............................. 350 --
Northern Telecom....................... 400 --
Sun Microsystems....................... 800 --
U.S. Robotics.......................... 600 --
VeriFons............................... 1,500 --
Xionics Document Technologies.......... 2,000 --
Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN HENDERSON INTERNATIONAL
PORTFOLIO
Common Stocks
Akzo Nobel............................. 688 688
Companhia Energetica de Minas
Gerais (ADRs)........................ 1,900 1,900
Mitsubishi Materials................... 30,000 45,000
Murata Manufacturing................... 5,000 5,000
Pioneer Electronic..................... 5,000 11,000
Railtrack Group........................ 9,500 9,500
Sumitomo Metal Industries.............. 44,000 69,000
Thyssen................................ 373 373
Toshiba................................ 21,000 42,000
United Utilities....................... 8,000 8,000
Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Common Stocks
Banco de Santander..................... 1,393 --
DSM.................................... 647 --
Iberdrola.............................. 6,731 --
Istituto Nazionale delle
Assicurazioni........................ 50,522 --
Koninklijke Ahold...................... 1,216 --
Nippon Telegraph & Telephone........... 1,700 --
Pharmacia & Upjohn..................... 1,983 --
Samsung Electronics.................... 916 204
Siebe.................................. 3,800 --
Societe Generale...................... 604 --
- -------------------------
See footnotes on page P-4.
-- P-3 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Largest Portfolio Changes (unaudited) (continued)
- -------------------------------------------------------------------------------
During the Six Months Ended June 30, 1997
Principal Amount
or Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Corporate Bonds
Berry Plastics 12-1/4%, 4/15/2004...... $400,000 $400,000
Casino America 12-1/2%, 8/1/2003....... 150,000 275,000
Crown Paper 11%, 9/1/2005.............. 150,000 150,000
French Fragrances 10-3/8%,
5/15/2007............................ 150,000 150,000
General Tractor 10-5/8%, 4/1/2007...... 175,000 175,000
Paging Network 10%, 10/15/2008......... 200,000 200,000
Riddell Sports 10-1/2%, 7/15/2007...... 150,000 150,000
Syratech 11%, 4/15/2007................ 150,000 150,000
TCI Satellite Entertainment
10-7/8%, 2/15/2007................... 250,000 250,000
Preferred Stocks
Sinclair Capital 11-5/8%............... 1,500 shs. 1,500 shs.
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Corporate Bonds
Allbritton Communications
11-1/2%, 8/15/2004................... $100,000 --
Allied Waste North America
10-1/4%, 12/1/2006................... 100,000 --
Dade International 11-1/8%,
5/1/2006............................. 100,000 $100,000
Grand Union 12%, 9/1/2004.............. 150,000 --
IMO Industries 11-3/4%, 5/1/2006....... 150,000 --
Omnipoint 11-5/8%, 8/15/2006........... 150,000 --
Rogers Communications
10-7/8%, 4/15/2004................... 100,000 --
Silgan 11-3/4%, 6/15/2002.............. 100,000 --
Stuart Entertainment
12-1/2%, 11/15/2004.................. 100,000 --
UNC 11%, 6/1/2006...................... 100,000 --
Principal Amount
or Shares
---------------------
Holdings
Additions Increase 6/30/97
- --------- -------- --------
SELIGMAN INCOME PORTFOLIO
Convertible Preferred Stocks
Greenfield Capital Trust 6%............ 3,000 shs. 3,000 shs.
McKesson 5%............................ 4,000 4,000
Common Stocks
SBC Communications..................... 2,000 2,000
Weyerhaeuser........................... 3,000 3,000
Corporate Bonds
Federated Department Stores
10%, 2/15/2001....................... $500,000 $500,000
Harman International
7.32%, 7/1/2007...................... 300,000 300,000
Loewen Group International
7-1/2%, 4/15/2002.................... 300,000 300,000
Norfolk Southern 6.95%,
5/1/2002............................. 300,000 300,000
Owens-Illinois 7.85%, 5/15/2004........ 300,000 300,000
Time Warner 9-1/8%, 1/15/2003.......... 300,000 300,000
Principal Amount
or Shares
----------------------
Holdings
Reductions Decrease 6/30/97
- ---------- -------- --------
Subordinated Convertible Bonds
BroadBand Technology
5%, 5/15/2001........................ $250,000 --
Pharmaceutical Marketing
Services 6-1/4%, 2/1/2003............ 235,000 --
Platinum Technology
6-3/4%, 11/15/2001................... 200,000 --
Trenwick Group 6%, 12/15/1999.......... 200,000 --
TriMas 5%, 8/1/2003.................... 200,000 --
Convertible Preferred Stocks
American General 3%.................... 4,500 shs. --
Common Stocks
CINergy................................ 8,718 1,000 shs.
Corporate Bonds
AEGON 8%, 8/15/2006.................... $250,000 --
MBNA 6.15%, 10/1/2003.................. 500,000 --
United Telecommunications
9-1/2%, 4/1/2003..................... 350,000 --
- -------------------------------------------------------------------------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
(1) Includes 5,900 shares received as a result of a 2-for-1 stock split.
(2) Includes 5,000 shares received as a result of a 2-for-1 stock split.
(3) Includes 33,400 shares received as a result of a 2-for-1 stock split.
(4) Includes 13,200 shares received as a result of a 2-for-1 stock split.
(5) Includes 20 shares received as a result of a 1-for-10 stock split.
(6) Includes 1,664 shares received as a result of a 1-for-2 stock split.
(7) Includes 1,850 shares received as a result of a 3-for-2 stock split.
-- P-4 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (unaudited) JUNE 30, 1997
- -------------------------------------------------------------------------------
SELIGMAN BOND PORTFOLIO
Principal
Amount Value
-------- -----
US GOVERNMENT SECURITIES
AND AGENCIES -- 30.7%
US GOVERNMENT
SECURITIES -- 13.4%
US Treasury Bonds
8-3/4%, 5/15/2020................... $400,000 $485,500
US Treasury Notes 6-1/4%,
10/31/2001.......................... 300,000 298,782
----------
Total US Government Securities
(Cost $779,158)..................... 784,282
----------
US GOVERNMENT
AGENCIES -- 17.3%
Federal National
Mortgage Association
7-1/2%, 11/1/2026+.................. 484,572 486,240
Government National
Mortgage Association:
7-1/2%, 6/15/2023+.................. 238,017 240,260
7-1/2%, 3/15/2026+.................. 290,301 291,391
----------
Total US Government Agencies
(Cost $987,642)..................... 1,017,891
----------
Total US Government
Securities and Agencies
(Cost $1,766,800)................... 1,802,173
----------
CORPORATE BONDS -- 51.8%
Anixter 8%, 9/15/2003.................. 200,000 203,466
Barrett Resources 7.55%,
2/1/2007............................ 200,000 199,283
Capital One Bank 8-1/8%,
3/1/2000............................ 150,000 155,017
Cott 8-1/2%, 5/1/2007.................. 200,000 200,000
First USA Bank
5-3/4%, 1/15/1999................... 100,000 99,242
General Motors Acceptance
5-5/8%, 2/1/1999.................... 150,000 148,583
Geon 6-7/8%, 12/15/2005................ 200,000 194,014
CORPORATE BONDS (continued)
Harman International
7.32%, 7/1/2007..................... 200,000 199,438
Loewen Group International
7-1/2%, 4/15/2001................... 200,000 202,516
The Money Store
8.05%, 4/15/2002.................... 200,000 202,562
Norfolk Southern
6.95%, 5/1/2002..................... 200,000 202,184
Oryx Energy
8-1/8%, 10/15/2005.................. 200,000 206,236
Owens-Illinois
7.85%, 5/15/2004.................... 200,000 203,997
Petroleum Georgia Pacific
7-1/2%, 3/31/2007................... 200,000 202,721
Time Warner
9-1/8%, 1/15/2013................... 200,000 222,289
Woolworth 7%, 6/1/2000................. 200,000 200,846
----------
Total Corporate Bonds
(Cost $3,013,284)................... 3,042,394
----------
FIXED TIME
DEPOSITS -- 7.7%
Canadian Imperial Bank of
Commerce, Grand Cayman
5.45%, 7/2/1997..................... 225,000 225,000
First National Bank of Chicago,
Grand Cayman 5.35%,
7/2/1997............................ 225,000 225,000
----------
Total Fixed Time Deposits
(Cost $450,000)..................... 450,000
----------
Total Investments -- 90.2%
(Cost $5,230,084)................... 5,294,567
Other Assets Less
Liabilities-- 9.8%.................. 572,867
----------
Net Assets-- 100.0%.................... $5,867,434
----------
----------
- -----------------------
+ 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 original maturity.
This in turn may impact the ultimate yield realized from these investments
See Notes to Financial Statements.
-- P-5 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- -------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 99.1%
AEROSPACE -- 0.9%
Litton Industries*..................... 3,400 $ 164,263
----------
AUTOMOTIVE AND
RELATED -- 1.6%
Harley-Davidson........................ 6,000 287,625
----------
BASIC MATERIALS -- 4.4%
Minerals Technologies.................. 5,000 187,500
Nucor.................................. 4,000 226,000
Olin................................... 6,100 238,281
Schulman, A............................ 4,687 115,857
----------
767,638
----------
BUSINESS SERVICES AND
SUPPLIES -- 6.0%
AccuStaff*............................. 6,400 151,600
IKON Office Solutions.................. 5,200 129,675
Interpublic Group
of Companies........................ 4,600 282,038
Reynolds & Reynolds
(Class A)........................... 14,400 226,800
Snyder Communications*................. 9,300 250,519
----------
1,040,632
----------
CAPITAL GOODS -- 2.0%
Westinghouse Electric.................. 14,790 342,019
----------
CONSUMER GOODS AND
SERVICES -- 4.4%
Coca-Cola.............................. 13,300 305,900
Estee Lauder (Class A)................. 2,500 125,625
Newell................................. 8,600 340,775
----------
772,300
----------
DRUGS AND
HEALTH CARE -- 19.0%
Amgen*................................. 1,300 75,522
Biogen*................................ 2,000 67,813
Boston Scientific*..................... 3,000 184,312
Cardinal Health........................ 4,700 269,075
Centocor............................... 4,700 145,847
Columbia/HCA Healthcare................ 7,900 310,569
Covance*............................... 19,200 370,800
DRUGS AND
HEALTH CARE (continued)
Guidant................................ 1,400 119,000
HCIA*.................................. 7,500 251,250
Humana*................................ 8,400 194,250
KOS Pharmaceuticals*................... 4,300 116,638
McKesson............................... 2,500 193,750
Mid Atlantic Medical Services*......... 7,400 115,162
Pfizer................................. 2,800 334,600
US Surgical............................ 6,300 234,675
Universal Health Services
(Class B)*.......................... 8,100 311,850
----------
3,295,113
----------
ENERGY -- 4.2%
Barrett Resources*..................... 4,300 128,731
ENSCO International *.................. 4,300 226,825
Petroleum Geo-Services
(ADRs)*............................. 4,000 195,500
Santa Fe International*................ 5,500 187,000
----------
738,056
----------
FINANCIAL SERVICES -- 21.6%
AFLAC.................................. 2,500 118,125
Amerin*................................ 7,200 174,600
Donaldson, Lufkin & Jenrette
Securities.......................... 3,600 215,100
GreenPoint Financial................... 5,800 386,063
Hartford Life (Class A)................ 4,900 183,750
MBNA................................... 10,000 366,250
Nationwide Financial
Services............................ 8,000 212,500
Old Republic International............. 2,900 87,906
Progressive (Ohio)..................... 3,700 321,900
Provident Cos.......................... 3,000 160,500
St. Paul Bancorp....................... 3,125 103,906
Schwab (Charles)....................... 5,800 235,987
TCF Financial.......................... 3,600 177,750
Transatlantic Holdings................. 1,700 168,725
Travelers.............................. 7,800 491,888
Washington Mutual...................... 5,800 346,731
----------
3,751,681
----------
INDUSTRIAL GOODS AND
SERVICES -- 0.4%
Ionics*................................ 1,500 68,250
----------
- -------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-6 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
June 30, 1997
- -------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
Shares or
Principal
Amount Value
-------- -----
LEISURE AND
RELATED -- 5.9%
British Sky Broadcasting
(ADRs).............................. 4,900 shs.$ 218,969
Circus Circus*......................... 6,100 150,213
Mattel................................. 7,812 264,631
Mirage Resorts*........................ 7,100 179,275
Sun International Hotels*.............. 5,700 210,544
----------
1,023,632
----------
PRINTING AND
PUBLISHING -- 0.9%
World Color Press*..................... 6,300 149,625
----------
RETAIL TRADE -- 4.1%
Barnes & Noble*........................ 4,100 176,300
Gucci Group............................ 1,500 96,562
Lowe's................................. 6,900 256,163
Nine West Group*....................... 4,600 175,662
----------
704,687
----------
TECHNOLOGY -- 19.9%
Activision*............................ 12,500 179,687
Adaptec*............................... 4,400 152,900
Arrow Electronics*..................... 3,000 159,375
BMC Software*.......................... 3,300 182,944
Ceridian*.............................. 5,000 211,250
DST Systems*........................... 5,000 166,562
Fiserv*................................ 10,100 451,975
Linear Technology...................... 3,000 154,969
Maxim Integrated Products*............. 3,000 170,437
Newbridge Networks*.................... 5,900 256,650
Quantum*............................... 11,800 240,056
Sterling Commerce*..................... 8,900 292,587
Symantec*.............................. 20,100 392,578
TECHNOLOGY (continued)
Vishay Intertechnology*................ 6,510 188,383
Xilinx*................................ 5,400 264,769
----------
3,465,122
----------
TELECOMMUNICATIONS -- 3.8%
Century Telephone
Enterprises......................... 4,100 138,119
EchoStar Communications
(Class A)*.......................... 5,000 78,437
QUALCOMM*.............................. 2,500 127,266
WorldCom*.............................. 10,200 326,081
----------
669,903
----------
Total Common Stocks
(Cost $14,476,453).................. 17,240,546
REPURCHASE
AGREEMENTS -- 6.6%
(Cost $1,150,000)
HSBC Securities, Inc., 5%,
dated 6/25/1997, maturing
7/2/1997 collateralized by:
$1,216,000 US Treasury
Notes 5-7/8%, 11/15/2005,
with a fair market value of
$1,178,169.......................... $1,150,000 1,150,000
----------
Total Investments -- 105.7%
(Cost $15,626,453).................. 18,390,546
Other Assets Less
Liabilities-- (5.7)%................ (999,335)
-----------
Net Assets-- 100.0%.................... $17,391,211
-----------
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-7 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- -------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO
Annualized
Yield on Principal
Purchase Date Amount Value
------------- ------ -----
COMMERCIAL
PAPER -- 36.2%
American Express
Credit Corp.,
9/2/1997.............. 5.54% $ 540,000 $ 534,755
American General
Finance Corp.,
8/5/1997.............. 5.55 520,000 517,154
Associates Corp. of
North America,
8/19/1997............. 5.56 500,000 496,189
Beneficial Corp.,
7/8/1997.............. 4.95 600,000 599,349
Ford Motor Credit Corp.,
8/25/1997............. 5.52 400,000 396,614
General Electric Capital
Corp., 9/25/1997...... 5.56 400,000 394,697
John Deere Capital
Corp., 8/12/1997...... 5.54 500,000 496,739
----------
Total Commercial Paper
(Cost $3,435,497)..... 3,435,497
----------
US GOVERNMENT
SECURITIES -- 32.5 %
US Treasury Bills,
7/24/1997............. 5.06 1,500,000 1,495,007
US Treasury Bills,
9/11/1997............. 5.04 1,600,000 1,583,872
----------
Total US Government
Securities
(Cost $3,078,879)..... 3,078,879
----------
BANK NOTES -- 11.6%
Huntington National Bank,
7/1/1997.............. 5.65 600,000 600,000
Wachovia Bank of Georgia,
7/17/1997............. 5.68 500,000 500,008
----------
Total Bank Notes
(Cost $1,100,008)..... 1,100,008
----------
FIXED TIME
DEPOSITS -- 5.3%
Canadian Imperial Bank
of Commerce,
Grand Cayman,
7/2/1997.............. 5.44 300,000 300,000
First National Bank of
Chicago,
Grand Cayman,
7/2/1997.............. 5.45 205,000 205,000
----------
Total Fixed Time
Deposits
(Cost $505,000)....... 505,000
----------
REPURCHASE
AGREEMENTS -- 12.7%
(Cost $1,200,000)
HSBC Securities, Inc.
5%, dated 6/25/1997,
maturing 7/2/1997
collateralized by:
$1,131,000 US
Treasury Notes
7-7/8%, 8/15/2001, with
a fair market value of
$1,227,664...................... 1,200,000 1,200,000
----------
Total Investments -- 98.3 %
(Cost $9,319,384)............... 9,319,384
Other Assets Less
Liabilities -- 1.7%............. 158,821
----------
Net Assets-- 100.0%................ $9,478,205
----------
----------
- --------------
See Notes to Financial Statements.
-- P-8 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
June 30, 1997
- -------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 75.4%
ADVERTISING -- 0.6%
Omnicom Group.................... 4,200 $ 258,825
----------
AEROSPACE/DEFENSE -- 3.2%
Avondale Industries*............. 8,000 169,500
General Dynamics................. 3,000 225,000
General Motors (Class H)......... 2,400 138,600
Raytheon......................... 5,500 280,500
United Technologies.............. 7,500 622,500
----------
1,436,100
----------
APPAREL AND TEXTILES -- 0.7%
Liz Claiborne.................... 7,000 326,375
----------
AUTOMOTIVE AND RELATED -- 3.4%
Borg-Warner Automotive........... 6,900 373,031
Dura Automotive Systems*......... 10,000 280,000
Echlin........................... 7,400 266,400
Harley-Davidson.................. 7,700 369,119
Magna International (Class A).... 4,000 240,750
----------
1,529,300
----------
CHEMICALS -- 1.5%
DuPont........................... 2,000 125,750
Hercules......................... 3,000 143,625
Morton International............. 6,600 199,238
Olin............................. 6,000 234,375
----------
702,988
----------
COMPUTER GOODS AND
SERVICES -- 1.9%
Automatic Data Processing........ 4,200 197,400
Compaq Computer.................. 4,300 426,775
Computer Associates
International................. 4,000 222,750
----------
846,925
----------
COMPUTER SOFTWARE -- 0.4%
Synopsys*........................ 5,100 188,222
----------
CONSTRUCTION -- 0.6%
Sherwin-Williams................. 9,600 296,400
----------
CONSUMER GOODS AND
SERVICES -- 5.3%
Colgate-Palmolive................ 10,400 678,600
Eastman Kodak.................... 4,000 307,000
International Flavors &
Fragrances.................... 6,700 338,350
RJR Nabisco Holdings............. 4,400 145,200
PepsiCo.......................... 12,600 473,288
Procter & Gamble................. 3,300 466,125
----------
2,408,563
----------
DRUGS AND HEALTH CARE -- 6.5%
Abbott Laboratories.............. 6,200 413,850
American Home Products........... 6,600 504,900
Baxter International............. 6,000 313,500
Bristol-Myers Squibb............. 4,000 324,000
Guidant.......................... 3,500 297,500
Medtronic........................ 3,000 243,000
Schering-Plough.................. 13,200 631,950
United Healthcare................ 4,500 234,000
----------
2,962,700
----------
ELECTRIC AND GAS
UTILITIES -- 0.7%
FPL Group........................ 7,200 331,650
----------
ELECTRICAL
EQUIPMENT -- 1.2%
Thomas & Betts................... 3,500 183,969
Westinghouse Electric............ 15,000 346,875
----------
530,844
----------
ELECTRONICS -- 4.2%
AMP.............................. 12,800 534,400
Arrow Electronics*............... 3,500 185,938
KEMET*........................... 15,000 374,062
Motorola......................... 6,000 456,000
Vishay Intertechnology*.......... 12,000 347,250
----------
1,897,650
----------
ENERGY -- 6.5%
Atlantic Richfield............... 5,000 352,500
Baker Hughes..................... 7,000 270,813
Enron............................ 7,500 306,094
- --------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-9 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- -------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value
-------- -----
ENERGY (continued)
Royal Dutch Petroleum............ 8,800 $ 478,500
Schlumberger..................... 3,000 375,000
Texaco........................... 5,300 576,375
Union Pacific Resources.......... 7,800 194,025
Williams Cos..................... 9,000 393,750
----------
2,947,057
----------
ENVIRONMENTAL
SERVICES -- 0.4%
Browning-Ferris Industries....... 6,000 199,500
----------
FINANCE AND INSURANCE -- 12.2%
Ahmanson (H.F.).................. 8,000 344,000
American International Group..... 4,800 717,000
BankAmerica...................... 4,400 284,075
Bank of New York................. 9,600 417,600
CIGNA............................ 1,800 319,500
Federal National Mortgage
Association................... 10,400 453,700
General Re....................... 3,500 637,000
Hartford Financial Services
Group......................... 4,000 331,000
Mellon Bank...................... 6,200 279,775
NationsBank...................... 11,628 750,006
PNC Bank......................... 5,900 245,588
St. Paul Companies............... 3,000 228,750
TIG Holdings..................... 7,000 218,750
Travelers........................ 5,000 315,313
----------
5,542,057
----------
FOOD -- 3.1%
ConAgra.......................... 5,250 336,656
CPC International................ 3,000 276,937
General Mills.................... 4,900 319,112
Sara Lee......................... 11,400 474,525
----------
1,407,230
----------
LEISURE AND
ENTERTAINMENT -- 0.5%
Disney, Walt..................... 2,900 232,725
----------
MACHINERY AND INDUSTRIAL
EQUIPMENT -- 5.4%
Emerson Electric................. 5,200 286,325
GATX............................. 5,000 288,750
MACHINERY AND INDUSTRIAL
EQUIPMENT (continued)
General Electric................. 9,200 601,450
General Signal................... 5,600 244,300
Illinois Tool Works.............. 10,000 499,375
Ingersoll-Rand................... 4,500 277,875
Parker-Hannifin.................. 4,300 260,956
----------
2,459,031
----------
METALS AND MINING -- 1.4%
Allegheny Teledyne............... 7,000 189,000
Reynolds Metals.................. 3,000 213,750
Worthington Industries........... 12,500 229,297
----------
632,047
----------
OFFICE EQUIPMENT -- 0.9%
IKON Office Solutions............ 5,000 124,687
Pitney Bowes..................... 4,100 284,950
----------
409,637
----------
PAPER AND PACKAGING -- 2.5%
James River...................... 7,000 259,000
Kimberly-Clark................... 6,600 328,350
Mead............................. 9,000 560,250
----------
1,147,600
----------
PRINTING AND PUBLISHING -- 0.5%
Tribune.......................... 4,800 230,700
----------
RESTAURANTS -- 0.5%
McDonald's....................... 4,500 217,406
----------
RETAIL TRADE -- 2.8%
Kmart............................ 5,800 71,050
May Department Stores............ 4,000 189,000
OfficeMax*....................... 10,000 144,375
The Pep Boys..................... 11,200 381,500
Wal-Mart......................... 8,100 273,881
Woolworth........................ 8,500 204,000
----------
1,263,806
----------
TECHNOLOGY -- 1.8%
Hewlett-Packard.................. 5,000 280,000
Intel............................ 2,000 283,187
- ---------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-10 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares or
Principal
Amount Value
-------- -----
TECHNOLOGY (continued)
Sun Microsystems................. 6,600shs.$ 245,644
----------
808,831
----------
TELECOMMUNICATIONS -- 1.8%
Loral Space &
Communications*............... 14,000 210,000
QUALCOMM*........................ 4,000 203,625
WorldCom*........................ 13,000 415,594
----------
829,219
----------
TELEPHONE UTILITIES -- 1.1%
Bell Atlantic.................... 800 60,700
GTE.............................. 3,900 171,112
SBC Communications............... 4,000 247,500
----------
479,312
----------
TRANSPORTATION -- 0.8%
Burlington Northern Santa Fe..... 4,000 359,500
----------
MISCELLANEOUS/
DIVERSIFIED --- 3.0%
Corning ......................... 9,200 511,750
Minnesota Mining &
Manufacturing................. 4,000 408,000
Republic Industries*............. 6,500 161,688
Tenneco.......................... 5,900 266,606
-----------
1,348,044
-----------
Total Common Stocks
(Cost $22,592,175)............ $34,230,244
-----------
SHORT-TERM
HOLDINGS -- 25.2%
FIXED TIME DEPOSITS -- 1.0%
Canadian Imperial Bank of
Commerce, Grand Cayman
5.45.%, 7/2/1997.............. $ 475,000 475,000
REPURCHASE
AGREEMENTS -- 24.2%
HSBC Securities, Inc., 5%, dated
6/25/1997, maturing 7/2/1997
collateralized by: $11,235,000
US Treasury Notes 4-3/4%,
8/31/1998, with a fair
market value of $11,262,477. . 11,000,000 11,000,000
-----------
Total Short-Term Holdings
(Cost $11,475,000)............ 11,475,000
-----------
Total Investments -- 100.6%
(Cost $34,067,175)............ 45,705,244
Other Assets Less
Liabilities-- (0.6)%.......... (278,864)
-----------
Net Assets-- 100.0%.............. $45,426,380
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 93.3%
COMMUNICATIONS
INFRASTRUCTURE -- 5.6%
Aspect Telecommunications*....... 29,800 $ 659,325
CIDCO*........................... 40,000 548,750
Cisco Systems*................... 6,000 402,937
DSP Communications*.............. 30,000 331,875
ECI Telecommunications........... 42,300 1,259,747
Network General*................. 24,400 362,187
Oak Industries*.................. 18,800 540,500
-----------
4,105,321
-----------
COMPUTER HARDWARE/
PERIPHERALS -- 21.5%
Adaptec*......................... 28,600 993,850
American Power Conversion*....... 44,100 833,766
Creative Technology*............. 29,000 489,375
Data General..................... 15,100 392,600
Electronics for Imaging*......... 35,600 1,680,988
EMC*............................. 76,700 2,991,300
HMT Technology*.................. 29,200 376,862
- -------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-11 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- -------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares Value
-------- -----
COMPUTER HARDWARE/
PERIPHERALS (continued)
In Focus Systems*................ 16,900 $ 436,231
Lexmark International Group
(Class A)*.................... 54,500 1,655,437
Mylex*........................... 37,600 359,550
Quantum*......................... 68,800 1,399,650
Read-Rite*....................... 50,500 1,052,609
Storage Technology*.............. 43,300 1,926,850
Western Digital*................. 40,800 1,290,300
-----------
15,879,368
-----------
COMPUTER SOFTWARE -- 11.8%
Activision*...................... 27,000 388,125
ANSYS*........................... 22,600 173,738
BMC Software*.................... 30,100 1,668,669
Cadence Design
Systems*...................... 35,300 1,182,550
Computer Associates
International................. 5,600 311,850
Gemstar International*........... 14,800 274,725
Parametric Technology*........... 31,700 1,348,241
Pure Atria*...................... 18,600 263,888
Rational Software*............... 9,200 154,388
Structural Dynamics
Research*..................... 48,900 1,285,153
Synopsys*........................ 29,600 1,092,425
3DO*............................. 41,400 146,194
Vantive*......................... 10,000 283,750
Viewlogic Systems*............... 9,200 135,125
-----------
8,708,821
-----------
CONTRACT MANUFACTURING/
CIRCUIT BOARDS -- 2.8%
ADFlex Solutions*................ 15,000 226,875
Altron*.......................... 16,900 256,669
Hadco*........................... 9,800 639,450
Praegitzer Industries*........... 9,400 104,575
SCI Systems*..................... 13,100 835,125
-----------
2,062,694
-----------
ELECTRONICS CAPITAL
EQUIPMENT -- 20.3%
Applied Materials*............... 17,200 1,217,437
ASM Lithography*................. 3,800 221,944
Asyst Technologies*.............. 9,400 411,250
Cognex*.......................... 37,600 998,750
Credence Systems*................ 33,800 1,012,944
ELECTRONICS CAPITAL
EQUIPMENT (continued)
Electro Scientific Industries*... 15,000 627,656
Etec Systems*.................... 18,700 801,178
Fusion Systems................... 20,000 791,875
Integrated Process Equipment*.... 18,200 460,688
InTEST*.......................... 100,000 912,500
KLA-Tencor*...................... 41,300 2,014,666
Kulicke & Soffa Industries*...... 29,000 939,781
Novellus Systems*................ 27,600 2,380,500
Teradyne*........................ 36,700 1,440,475
Veeco Instruments*............... 20,500 795,656
-----------
15,027,300
-----------
INFORMATION
SERVICES -- 2.7%
Computer Sciences*............... 15,000 1,081,875
MAXIMUS*......................... 50,000 893,750
-----------
1,975,625
-----------
MEDIA -- 5.7%
Clear Channel
Communications*............... 11,500 707,250
Cox Radio (Class A)*............. 16,900 433,063
Evergreen Media
(Class A)*.................... 29,000 1,292,312
Westinghouse Electric............ 76,000 1,757,500
-----------
4,190,125
-----------
SEMICONDUCTORS -- 20.3%
Advanced Micro
Devices*...................... 56,000 2,016,000
Altera*.......................... 23,400 1,182,431
Analog Devices*.................. 29,100 772,969
AVX.............................. 16,500 445,500
Cypress Semiconductor*........... 18,000 261,000
International Rectifier*......... 60,000 1,117,500
Lattice Semiconductor*........... 23,900 1,348,856
Linear Technology................ 11,300 583,716
LSI Logic*....................... 14,000 448,000
Maxim Integrated Products*....... 34,000 1,931,625
Microchip Technology*............ 44,500 1,322,484
Micron Technology*............... 11,000 439,312
PMC-Sierra*...................... 3,600 94,275
Texas Instruments................ 6,900 580,031
Vishay Intertechnology*.......... 23,200 671,350
VLSI Technology*................. 41,000 967,344
Xilinx*.......................... 17,000 833,531
-----------
15,015,924
-----------
- ------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-12 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares Value
-------- -----
TELECOMMUNICATIONS -- 2.6%
Millicom International Cellular*. 5,600 $ 269,500
Star Telecommunications.......... 60,000 813,750
WorldCom*........................ 26,000 831,188
-----------
1,914,438
-----------
Total Common Stocks
(Cost $60,240,045)............ 68,879,616
SHORT-TERM HOLDINGS -- 4.7%
(Cost $3,475,000)............. 3,475,000
-----------
Total Investments -- 98.0%
(Cost $63,715,045)............ 72,354,616
Other Assets Less
Liabilities-- 2.0%............ 1,473,046
-----------
Net Assets-- 100.0%.............. $73,827,662
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 99.3%
ADVERTISING -- 1.7%
Acxiom........................... 1,900 $ 39,069
ADVO*............................ 22,000 357,500
HA-LO Industries*................ 11,200 262,500
-----------
659,069
-----------
AEROSPACE AND DEFENSE -- 1.4%
Avondale Industries*............. 25,500 540,281
-----------
BUSINESS GOODS AND
SERVICES -- 18.5%
AccuStaff*....................... 38,400 909,600
Administaff*..................... 25,000 604,688
American Pad & Paper*............ 25,500 430,313
BDM International*............... 15,020 343,583
Bell & Howell Holdings*.......... 6,690 206,136
Ceridian*........................ 28,400 1,199,900
Corporate EXPRESS................ 51,000 734,719
DST Systems*..................... 20,800 692,900
Fiserv*.......................... 6,600 295,350
MetroMail*....................... 15,200 376,200
OMI*............................. 24,300 232,369
Personnel Group of America*...... 10,100 291,006
TeleSpectrum Worldwide*.......... 35,300 249,306
US Xpress Enterprises*........... 12,300 238,313
Wilmar Industries*............... 14,500 357,969
-----------
7,162,352
-----------
CAPITAL GOODS -- 6.5%
Carbide/Graphite Group*.......... 10,000 231,250
DONCASTERS (ADRs)*............... 22,800 527,250
Fusion Systems*.................. 3,745 148,279
CAPITAL GOODS (continued)
General Cable*................... 15,900 407,437
Oak Industries*.................. 16,230 466,612
UCAR International*.............. 12,100 553,575
Wyman-Gordon*.................... 6,700 181,319
-----------
2,515,722
-----------
CHEMICALS -- 0.9%
Polymer Group*................... 21,600 348,300
-----------
COMMUNICATIONS -- 2.4%
Arch Communications Group*....... 13,565 105,129
CIDCO*........................... 11,480 157,491
Glenayre Technologies*........... 16,100 264,141
Omnipoint*....................... 18,700 310,303
Western Wireless (Class A)*...... 5,800 92,256
-----------
929,320
-----------
COMPUTER SOFTWARE AND
SERVICES -- 5.2%
Affiliated Computer Services
(Class A)*.................... 8,000 224,000
American Management
Systems*...................... 6,000 160,875
Analysts International........... 5,000 167,500
Black Box*....................... 10,800 434,362
Control Data Systems*............ 18,600 274,350
PSW Technolgies*................. 19,100 228,006
Sunquest Information Systems*.... 21,000 318,938
Synopsys*........................ 5,200 191,912
-----------
1,999,943
-----------
- ---------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-13 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
-------- -----
CONSUMER GOODS AND
SERVICES -- 6.6%
American Homestar*............... 14,125 $ 300,156
Carriage Services (Class A)*..... 10,200 219,300
Coinmach Laundry*................ 23,600 566,400
Education Management*............ 15,300 393,975
Educational Medical*............. 25,000 214,062
Pittston Brink's Group........... 20,300 609,000
Zag Industries*.................. 25,000 253,906
-----------
2,556,799
-----------
DRUGS AND HEALTH
CARE -- 10.7%
American HomePatient*............ 16,200 406,012
American Medserve*............... 25,000 328,125
AmeriSource
Health (Class A)*............. 9,730 485,284
HealthCor Holdings*.............. 13,700 131,863
National Surgery Centers*........ 13,050 461,644
Omnicare......................... 8,900 279,237
R.P. Scherer*.................... 12,500 645,312
Sierra Health Services*.......... 5,500 171,875
Specialty Care Network*.......... 20,000 240,000
Total Renal Care Holdings*....... 13,500 542,531
Watson Pharmaceuticals*.......... 10,400 438,750
-----------
4,130,633
-----------
ELECTRONICS -- 9.6%
ADFlex Solutions*................ 6,000 90,750
Cognex*.......................... 34,460 915,344
Credence Systems*................ 10,500 314,672
Electro Scientific Industries*... 4,200 175,744
Electronics for Imaging*......... 12,100 571,347
International Rectifier*......... 13,800 257,025
KEMET*........................... 11,400 284,288
Lattice Semiconductor*........... 9,870 557,038
PMT Services*.................... 13,200 200,887
Vishay Intertechnology*.......... 11,340 328,151
-----------
3,695,246
-----------
ENVIRONMENTAL
MANAGEMENT -- 1.8%
Allied Waste Industries*......... 19,600 333,812
American Disposal Services*...... 15,000 339,375
-----------
673,187
-----------
FARM EQUIPMENT -- 0.5%
RDO Equipment (Class A)*......... 9,000 201,375
-----------
FINANCIAL SERVICES -- 4.7%
CMAC Investment.................. 6,800 324,700
Commerce Bancorp................. 5,381 208,514
FINOVA Group..................... 4,000 306,000
First Investors Financial Services
Group*........................ 5,100 37,613
Hamilton Bancorp*................ 8,100 215,662
HealthCare Financial
Partners*..................... 4,900 99,225
Leasing Solutions*............... 6,100 92,263
PFF Bancorp*..................... 3,400 64,175
Primark *........................ 7,000 186,375
Roslyn Bancorp*.................. 8,000 182,750
Statewide Financial.............. 5,100 91,162
-----------
1,808,439
-----------
GAMING AND HOTELS -- 1.5%
GTECH Holdings*.................. 12,100 390,225
Interstate Hotels*............... 6,900 203,119
-----------
593,344
-----------
INDEPENDENT POWER
PRODUCERS -- 3.8%
CalEnergy*....................... 28,360 1,077,680
Calpine*......................... 19,700 374,300
-----------
1,451,980
-----------
INDUSTRIAL GOODS AND
SERVICES -- 1.5%
Hirsch International (Class A)*.. 3,100 68,394
Memtec (ADRs).................... 18,700 497,887
-----------
566,281
-----------
INSURANCE -- 5.1%
CompDent*........................ 16,500 346,500
First Commonwealth *............. 71,700 1,362,300
Trigon Healthcare*............... 11,200 271,600
-----------
1,980,400
-----------
- ---------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-14 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value
-------- -----
MEDIA AND
BROADCASTING -- 4.7%
Argyle Television (Class A)*..... 12,100 $ 306,281
Chancellor Broadcasting
(Class A)*.................... 8,800 351,450
Evergreen Media (Class A)*....... 7,900 352,044
Jacor Communications*............ 14,350 550,233
Paxson Communications
(Class A)*.................... 20,300 258,825
-----------
1,818,833
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 6.3%
Collaborative Clinical
Research*..................... 20,000 143,750
Dentsply International........... 8,685 425,022
Medical Manager*................. 20,000 298,750
ProMedCo Management*............. 50,000 431,250
Suburban Ostomy Supply*.......... 15,700 148,169
Sybron International*............ 12,280 489,665
Thermoquest...................... 10,100 156,550
Waters*.......................... 9,300 333,637
-----------
2,426,793
-----------
OIL AND GAS -- 1.9%
Pogo Producing................... 11,410 441,424
Santa Fe Energy Resources*....... 19,600 287,875
-----------
729,299
-----------
PLASTICS -- 0.2%
Spartech......................... 7,000 91,000
-----------
PUBLISHING -- 0.9%
Journal Register*................ 18,200 361,725
-----------
RETAIL TRADE -- 2.9%
Barnes & Noble*.................. 5,000 215,000
Borders Group*................... 13,800 332,925
Copart*.......................... 8,000 133,750
Gucci Group...................... 3,700 238,188
Party City*...................... 11,000 180,813
-----------
1,100,676
-----------
Total Investments -- 99.3%
(Cost $34,358,660)............ 38,340,997
Other Assets Less
Liabilities-- 0.7%............ 269,722
-----------
Net Assets-- 100.0%.............. $38,610,719
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 92.9%
AEROSPACE -- 1.2%
Boeing (US)...................... 300 $ 15,919
Rolls-Royce (UK)................. 9,200 35,123
-----------
51,042
-----------
AUTOMOTIVE AND RELATED -- 3.8%
Autoliv (Sweden)................. 1,100 43,037
Nokia Tyres* (Finland)........... 530 39,618
Pacific BBA (Australia).......... 7,900 29,813
Valeo (France)................... 740 45,969
-----------
158,437
-----------
BUSINESS GOODS AND
SERVICES -- 7.3%
Daitec (Japan)................... 600 25,677
First Data (US).................. 800 35,150
HFS* (US)........................ 800 46,400
Interpublic Group of
Companies (US)............... 700 42,919
Tomra Systems (Norway)........... 2,550 52,269
Vedior (Netherlands)............. 500 13,227
WPP Group (UK)................... 10,500 43,056
Xerox (US)....................... 600 47,325
-----------
306,023
-----------
- ------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-15 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
Shares Value
-------- -----
COMPUTER AND TECHNOLOGY
RELATED -- 9.1%
Adaptec* (US).................... 400 $ 13,900
CMG* (UK)........................ 1,100 24,017
Diamond Computer Service
(Japan)....................... 2,000 41,397
Hewlett-Packard (US)............. 500 28,000
Intel (US)....................... 300 42,478
K.R. Precision Public
(Thailand).................... 4,000 29,940
Meitec (Japan)................... 1,000 29,782
Microsoft* (US).................. 700 88,528
Parity (UK)...................... 2,500 20,690
Synnex Technology International
(GDRs)* (Taiwan).............. 1,500 34,313
Xilinx* (US)..................... 500 24,516
-----------
377,561
-----------
CONSTRUCTION AND
PROPERTY -- 0.8%
Ashtead Group (UK)............... 7,000 32,197
-----------
CONSUMER GOODS AND
SERVICES -- 6.9%
Adidas (Germany)................. 620 69,357
Gucci Group (Netherlands)........ 655 42,166
Liz Claiborne (US)............... 300 13,988
Ng Fung Hong (Hong Kong)......... 18,000 26,952
Procter & Gamble (US)............ 300 42,375
Raision Tehtaat (Finland)........ 400 27,519
Sociedade General de Aguas
de Barcelona (Spain).......... 865 35,413
Want Want Holdings*
(Singapore)................... 8,400 27,888
-----------
285,658
-----------
DISTRIBUTORS -- 0.5%
Ryoyo Electro (Japan)............ 1,000 19,738
-----------
DIVERSIFIED -- 2.5%
Bodycote International (UK)...... 3,000 38,302
Desc (ADRs)* (Mexico)............ 2,220 64,657
-----------
102,959
-----------
DRUGS AND HEALTH CARE -- 10.3%
Biogen* (US)..................... 400 13,563
Boston Scientific* (US).......... 1,000 61,438
British Biotech* (UK)............ 7,000 26,549
Cardinal Health (US)............. 600 34,350
Centocor* (US)................... 700 21,722
Columbia/HCA Healthcare
(US).......................... 1,300 51,106
Essilor International (France)... 185 49,905
Hogy Medical (Japan)............. 1,100 46,594
Pfizer (US)...................... 400 47,800
Pharmacia & Upjohn
(Sweden)...................... 275 9,487
Richter Gedeon (GDRs)
(Hungary)..................... 480 44,160
United Healthcare (US)........... 400 20,800
-----------
427,474
-----------
ELECTRIC AND GAS
UTILITIES -- 0.7%
Gazprom (ADRs)*+ (Russia)........ 800 13,400
Shandong Huaneng Power
(ADRs) (China)................ 1,500 16,125
-----------
29,525
-----------
ELECTRONICS -- 7.4%
Electronic Resources
(Singapore)................... 20,000 31,475
Keyence (Japan).................. 220 32,664
Kyocera (Japan).................. 600 47,686
Nihon Dempa Kogyo (Japan)........ 1,300 23,616
Philips Electronics
(Netherlands)................. 865 61,990
Samsung Electronics
(South Korea)................. 390 42,977
Samsung Electronics
(Rights)* (South Korea)....... 6 223
SGS-Thomson Microelectronics*
(France)...................... 845 66,729
-----------
307,360
-----------
- ------------------
* Non-income producing security.
+ Rule 144A Security.
See Notes to Financial Statements.
-- P-16 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
Shares Value
-------- -----
ENTERTAINMENT AND
LEISURE -- 8.2%
Accor (France)................... 260 $ 38,940
Crown* (Australia)............... 9,333 15,004
Disney, Walt (US)................ 500 40,125
Granada Group (UK)............... 3,000 39,425
HIS (Japan)...................... 1,000 52,838
Ladbroke Group (UK).............. 8,000 31,274
Oriental Land (Japan)............ 300 21,380
Sol Melia* (Spain)............... 1,380 56,684
Sun International Hotels* (US)... 1,200 44,325
-----------
339,995
-----------
FINANCIAL SERVICES -- 7.8%
American International Group
(US).......................... 300 44,813
Donaldson, Lufkin & Jenrette
Securities (US)............... 200 11,950
Malaysia Assurance (Malaysia).... 3,300 19,219
MBNA (US)....................... 1,750 64,094
Mediolanum* (Italy).............. 2,400 27,111
Nomura Securities (Japan)........ 3,000 41,397
Sanyo Shinpan Finance
(Japan)....................... 440 27,245
State Bank of India (GDRs)*+
(India)....................... 700 18,287
Travelers (US)................... 800 50,450
Uniao de Bancos Brasileiros
(GDRs)* (Brazil).............. 600 22,275
-----------
326,841
-----------
INDUSTRIAL GOODS AND
SERVICES -- 3.3%
ABB (Switzerland)................ 39 59,054
Empresas ICA Sociedad
Controladora (ADRs)*
(Mexico)...................... 3,000 48,187
Outokumpu (Finland).............. 1,500 29,773
-----------
137,014
-----------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT -- 2.0%
Advanced Systems
Automation* (Singapore)....... 17,000 32,105
Asahi Diamond Industries
(Japan)....................... 3,060 28,328
Kalmar Industries (Sweden)....... 1,300 22,324
-----------
82,757
-----------
PUBLISHING -- 1.2%
Elsevier (Netherlands)........... 2,920 48,818
-----------
RESOURCES -- 2.8%
Gencor (South Africa)............ 5,000 23,046
MOL Magyar Olaj-es Gazipari
(GDRs)*+ (Hungary)............ 2,800 62,300
Tatneft (ADRs)*+ (Russia)........ 300 32,327
-----------
117,673
-----------
RESTAURANTS -- 1.0%
KFC Holdings (Malaysia).......... 6,000 22,583
Pizza Express (UK)............... 2,000 20,927
-----------
43,510
-----------
RETAILING -- 3.8%
Adolfo Dominguez* (Spain)........ 500 19,689
Dixons Group (UK)................ 2,800 21,752
Metro* (Germany)................. 590 64,309
Shimachu (Japan)................. 1,000 30,044
Tsutsumi Jewelry (Japan)......... 900 22,795
-----------
158,589
-----------
SUPPORT SERVICES -- 1.1%
CRT Group (UK)................... 6,500 25,897
Rentokil (UK).................... 6,000 21,060
-----------
46,957
-----------
- -------------------
* Non-income producing security.
+ Rule 144A Security.
See Notes to Financial Statements.
-- P-17 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
Shares Value
-------- -----
TELECOMMUNICATIONS -- 7.6%
Datacraft Asia (Singapore)....... 10,000 $ 31,800
DDI (Japan)...................... 5 36,943
L.M. Ericsson Telefon
(Series B) (Sweden)........... 1,800 71,034
Grupo Iusacell (ADRs)*
(Mexico)...................... 1,400 25,725
Telebras (ADRs) (Brazil)......... 430 65,252
Telefonica del Peru (ADRs)
(Peru)........................ 550 14,403
Videsh Sanchar Nigam (GDRs)*
(India)....................... 900 18,787
WorldCom* (US)................... 1,600 51,150
-----------
315,094
-----------
TOBACCO -- 1.3%
Tabacalera (Series A) (Spain).... 980 52,630
-----------
TRANSPORTATION -- 2.3%
Koninklijke Van Ommeren
(Netherlands)................. 1,010 39,228
Lufthansa (Germany).............. 2,970 57,163
-----------
96,391
-----------
Total Common Stocks
(Cost $3,445,914)............. 3,864,243
PREFERRED STOCKS -- 1.3%
(Cost $40,097)
AUTOMOTIVE AND
RELATED -- 1.3%
Porsche (Non-Voting)*
(Germany)..................... 40 52,090
-----------
Total Investments -- 94.2%
(Cost $3,486,011)............. 3,916,333
Other Assets Less
Liabilities-- 5.8%............ 242,876
-----------
Net Assets-- 100.0%.............. $4,159,209
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 91.5%
ADVERTISING -- 1.4%
Asatsu (Japan)................... 2,900 $ 107,389
Universal Outdoor Holdings*
(US).......................... 6,000 209,625
-----------
317,014
-----------
AUTOMOTIVE PARTS
MANUFACTURING -- 2.8%
Calsonic (Japan)................. 2,000 12,716
ECIA (France).................... 910 138,768
Futuris (Australia).............. 29,273 47,060
Han Kook Tire Manufacturing
(South Korea)................. 300 13,007
Montupet (France)................ 778 85,802
Nippon Seiki (Japan)............. 5,300 53,231
Nokian Tyres* (Finland).......... 2,985 80,533
Qingling Motors (Hong Kong)...... 32,000 16,523
Sylea (France)................... 1,743 166,715
-----------
614,355
-----------
BUILDING MATERIALS -- 2.1%
Apogee Enterprises (US).......... 4,400 94,325
Danto (Japan).................... 4,000 47,860
Excel Machine Tools*
(Singapore)................... 36,000 20,018
Gujurat Ambuja Cement (GDSs)
(India)....................... 10,839 104,325
Malayan Cement (Malaysia)........ 18,750 31,349
Polypipe (UK).................... 41,000 141,863
Tipco Asphalt (Thailand)......... 5,000 27,163
-----------
466,903
-----------
BUSINESS GOODS AND
SERVICES -- 8.0%
AccuStaff* (US).................. 8,000 189,500
Administaff* (US)................ 10,000 241,875
Alternative Resources* (US)...... 1,800 36,619
BA Merchant Services* (US)....... 3,800 72,438
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-18 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
-------- -----
BUSINESS GOODS AND
SERVICES (continued)
BDM International (US)........... 3,700 $ 84,638
Ceridan* (US).................... 4,000 169,000
Corporate EXPRESS* (US).......... 12,000 172,875
FactSet Research Systems*
(US).......................... 9,500 232,750
Fujitsu Business Systems
(Japan)....................... 3,000 84,105
IBC Group (UK)................... 22,800 148,108
ISA International (UK)........... 32,400 104,291
Rent-Way* (US)................... 2,000 29,250
Skilled Engineering (Australia).. 17,100 31,362
Source Services* (US)............ 3,800 101,413
Yokohama Reito (Japan)........... 5,000 58,079
-----------
1,756,303
-----------
CAPITAL GOODS -- 3.9%
Bobst (Switzerland)............. 42 71,367
BT Industries (Sweden)........... 8,100 162,714
Fusion Systems* (US)............. 800 31,675
Iro* (Sweden).................... 9,170 112,308
Kalmar Industries (Sweden)....... 4,563 78,356
Namura Shipbuilding (Japan)...... 13,000 64,716
Rauma (Finland).................. 8,231 188,755
Valmet (Finland)................. 8,915 154,276
-----------
864,167
-----------
CHEMICALS -- 0.5%
Chemical Company of Malaysia
(Malaysia).................... 10,000 27,139
Chemical Company of Malaysia
(Warrants)* (Malaysia)........ 1,250 1,154
Toyo Ink Manufacturing
(Japan)....................... 21,000 84,000
-----------
112,293
-----------
COMPUTER SOFTWARE -- 3.2%
Acxiom* (US)..................... 4,000 82,250
Black Box* (US).................. 3,000 120,656
F.I. Group* (UK)................. 9,720 84,403
Hitachi Information Systems
(Japan)....................... 4,000 51,703
Informatics Holdings
(Singapore)................... 33,000 19,735
Japan Information Processing
Service (Japan)............... 3,250 48,253
MAPICS* (US)..................... 5,000 73,438
COMPUTER SOFTWARE
(continued)
Mentor Graphics* (US)............ 4,400 40,769
Parity (UK)...................... 21,000 173,794
-----------
695,001
-----------
CONSTRUCTION AND
PROPERTY -- 6.0%
Ashtead Group (UK)............... 38,300 176,164
Bau Holdings (Non-Voting
Preference Shares)
(Austria)..................... 2,600 187,630
Bau Holdings (Voting
Preference Shares)
(Austria)..................... 1,380 74,944
Bukit Sembawang Estates
(Singapore)................... 1,000 18,465
Danske Traelastkompagni
(Denmark).................... 2,043 186,861
Higashi Nihon House (Japan)...... 7,000 75,197
Kawasan Industri Jababeka
(Indonesia)................... 17,000 22,718
Lai Sun Development
(Hong Kong)................... 19,000 21,337
Mitsui Home (Japan).............. 8,000 78,952
New Asia Realty
(Hong Kong)................... 6,000 23,699
Nishio Rent All (Japan).......... 3,000 41,921
Plettac (Germany)................ 541 124,143
Thorkild Kristensen (Denmark) ... 1,652 124,463
Tilbury Douglas (UK)............. 11,700 125,536
Wing Tai Holdings
(Singapore)................... 9,000 25,936
-----------
1,307,966
-----------
CONSUMER GOODS AND
SERVICES -- 6.7%
American Disposal
Service* (US)................. 5,000 113,125
Budget Group* (US)............... 6,400 220,800
Canandaigua Wine
(Class A)* (US)............... 2,415 81,959
Childtime Learning
Centers* (US)................. 4,600 44,275
Ekornes (Norway)................. 29,400 249,088
Fujicco (Japan).................. 3,000 40,349
La Doria (Italy)................. 50,700 133,547
- ------------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-19 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
-------- -----
CONSUMER GOODS AND
SERVICES (continued)
Li & Fung (Hong Kong)............ 4,000 $ 4,492
Sola International* (US)......... 3,400 113,900
Steinway Musical
Instruments* (US)............. 3,800 74,100
Tarkett (Germany)................ 9,500 245,246
Want Want Holdings*
(Singapore)................... 16,400 54,448
Youth Services
International* (US)........... 8,600 105,888
-----------
1,481,217
-----------
DRUGS AND HEALTH CARE -- 4.9%
American Oncology
Resources* (US)............... 5,000 84,063
AmeriSource Health
(Class A)* (US)............... 3,600 179,550
Chiroscience Group (UK).......... 2,750 11,093
Collaborative Clinical
Research* (US)................ 2,900 20,844
Darya Varia Lab (Indonesia)...... 15,720 18,987
Peptide Therapeutics Group*
(UK).......................... 2,750 14,021
Shire Pharmaceuticals* (UK)...... 5,500 21,501
Tamro (Finland).................. 30,000 208,125
Total Renal Care Holdings*
(US).......................... 4,100 164,769
Towa Pharmaceutical (Japan)...... 3,000 39,301
Trigon Healthcare* (US).......... 1,400 33,950
Vanguard Medica
Group* (UK)................... 1,250 10,033
Waters* (US)..................... 3,500 125,562
Watson Pharmaceuticals* (US)..... 3,600 151,875
-----------
1,083,674
-----------
ELECTRIC UTILITIES -- 2.5%
Beijing Datang Power
Generation* (Hong Kong)....... 47,000 21,689
CalEnergy* (US).................. 7,700 292,600
Calpine* (US).................... 9,600 182,400
Okinawa Electric
Power (Japan)................. 2,200 43,808
-----------
540,497
-----------
ELECTRICAL
DISTRIBUTION -- 0.6%
Abacus Polar (UK)................ 19,500 60,497
Trifast (UK)..................... 7,600 65,109
-----------
125,606
-----------
ELECTRONICS -- 3.9%
ADFlex Solutions* (US)........... 1,200 18,150
Berg Electronics* (US)........... 5,500 197,656
Electro Scientific Industries*
(US).......................... 2,790 116,744
Enplas (Japan)................... 1,000 18,253
Fairey Group (UK)................ 11,200 90,454
Hana Microelectronics
(Thailand).................... 6,000 33,561
Horiba Instruments (Japan)....... 8,000 102,707
Johnson Electric Holdings
(Hong Kong)................... 10,000 29,818
Otra (Netherlands)............... 9,840 157,990
Ryoyo Electro (Japan)............ 5,000 98,690
-----------
864,023
-----------
FINANCIAL SERVICES -- 3.6%
Bure Investment Aktiebolaget
(Sweden)...................... 4,700 59,390
Dah Sing Financial Group
(Hong Kong)................... 10,000 55,376
HIH Winterthur International
Holdings (Australia).......... 12,400 29,948
Ichiyoshi Securities (Japan)..... 18,000 69,642
Medallion Financial (US)......... 6,000 113,625
Mutual Risk Management (US)...... 2,066 94,778
Nisshin Fire & Marine Insurance
(Japan)....................... 16,000 64,838
Philippine National Bank*
(Philippines)................. 412 2,796
Shohkoh Fund (Japan)............. 200 60,611
Southern Bank (Malaysia)......... 10,000 22,385
Sydbank (Denmark)................ 2,300 105,010
UnionAmerica Holdings
(ADRs) (UK)................... 3,500 72,188
Wing Hang Bank (Hong Kong)....... 7,200 43,496
-----------
794,083
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-20 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
-------- -----
INDUSTRIAL GOODS AND
SERVICES -- 4.4%
AEA Technology (UK).............. 6,500 $ 43,629
Allied Waste Industries (US)..... 7,700 131,141
Angpanneforeningen (Class B)
(Sweden)...................... 4,375 69,741
Assystem (France)................ 2,260 129,237
Bacou USA* (US).................. 3,100 49,988
Druck Holdings (UK).............. 11,500 44,956
First Aviation Services* (US).... 3,800 36,100
Kardex (Switzerland)............. 484 138,286
Memtec (ADRs) (Australia)........ 7,900 210,338
Technip* (France)................ 923 107,134
-----------
960,550
-----------
LEISURE AND HOTELS -- 1.5%
Allied Leisure (UK).............. 97,500 53,523
GTECH Holdings* (US)............. 3,700 119,325
Interstate Hotels* (US).......... 1,500 44,156
Jupiters (Australia)............. 10,000 24,907
Sun International Hotels* (US)... 2,500 92,344
-----------
334,255
-----------
MANUFACTURING -- 11.4%
American Homestar* (US).......... 6,000 127,500
Asahi Diamond Industries
(Japan)....................... 10,300 95,354
Australian National Industries
(Australia)................... 27,000 33,013
British Polythene Industries
(UK).......................... 5,500 46,524
Cobham (UK)...................... 8,950 107,196
David Brown Group (UK)........... 27,157 98,257
Domnick Hunter Group (UK)........ 20,000 117,942
L'Europeenne d'Extincteurs
(France)..................... 2,100 144,391
L'Europeenne d'Extincteurs
(Rights)* (France)............ 420 26,755
Finnveden (Series B)*
(Sweden)..................... 6,150 123,542
Glory Kogyo (Japan).............. 4,000 89,083
Hokkai Can (Japan)............... 7,000 35,581
Hokushin (Japan)................. 10,000 58,253
Hucke (Germany).................. 5,692 147,920
KEMET* (US)...................... 4,000 99,750
Komatsu Seiren (Japan)........... 5,000 52,838
MANUFACTURING (continued)
Mitsubishi Cable Industries
(Japan)....................... 10,000 43,843
Nichicon (Japan)................. 7,000 94,760
PLM (Sweden).................... 9,500 164,366
Samas Groep (Netherlands)........ 3,163 136,071
SIG Schweizerische Industrie-
Gesellschaft* (Switzerland)... 90 133,813
Sodick (Japan)................... 10,000 81,310
Stoves* (UK)..................... 9,500 44,012
Tsubaki Nakashima (Japan)........ 11,000 103,755
Tsudakoma (Japan)................ 20,000 94,672
Venture Manufacturing
(Singapore).................. 7,500 24,446
Wellington Holdings (UK)......... 9,500 33,582
Zag Industries* (US)............. 15,000 152,344
-----------
2,510,873
-----------
MEDIA -- 3.0%
Capital Radio (UK)............... 15,000 134,120
Cox Radio (Class A)* (US)........ 6,500 166,563
GWR Group (UK)................... 24,000 68,669
South China Morning Post
(Hong Kong)................... 67,000 65,728
Toei (Japan)..................... 8,000 54,847
Trinity International Holdings
(UK).......................... 20,100 142,439
United Video Satellite Group
(Class A)* (US)............... 890 18,523
-----------
650,889
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 3.4%
Acuson* (US)..................... 3,000 69,000
ChiRex* (US)..................... 1,900 22,919
Compdent* (US)................... 6,000 126,000
Hitachi Medical (Japan).......... 5,000 72,926
Imnet Systems* (US).............. 4,800 148,800
Instrumentation Laboratories
(ADRs)* (Italy)............... 6,000 17,250
Kissei Pharmaceutical
(Japan)....................... 2,000 44,017
NCS HealthCare
(Class A)* (US)............... 6,100 187,194
Sybron International* (US)....... 1,700 67,788
-----------
755,894
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-21 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value
-------- -----
METALS -- 1.4%
Amtek Engineering
(Singapore)................... 13,000 $ 22,823
IMS International Metal
Service (France).............. 860 118,995
Nakayama Steel Works
(Japan)...................... 18,000 77,817
Sanyo Special Steel (Japan)...... 28,000 78,253
-----------
297,888
-----------
MINING SERVICES -- 0.1%
Savage Resources (Australia)..... 33,400 30,250
-----------
PAPER AND PRINTING -- 1.0%
Munksjo (Sweden)................. 8,400 86,547
Nissha Printing (Japan).......... 4,000 46,114
Rengo (Japan).................... 14,000 87,913
-----------
220,574
-----------
RESOURCES -- 0.6%
Nittetsu Mining (Japan).......... 12,000 93,799
QNI (Australia).................. 4,000 7,215
Seoul City Gas (South Korea)..... 500 22,748
-----------
123,762
-----------
RESTAURANTS -- 1.6%
Aiya (Japan)..................... 3,000 39,825
Kentucky Fried Chicken
(Japan)....................... 5,000 68,996
KFC Holdings (Malaysia).......... 6,000 22,583
Pizza Express (UK)............... 16,500 172,646
Sagami Chain (Japan)............. 3,000 46,900
-----------
350,950
-----------
RETAILING -- 5.7%
Courts (Singapore)............... 8,200 11,586
Dominick's Supermarkets*
(US)......................... 2,900 77,213
Electronics Boutique* (UK)....... 129,800 72,334
Fotolabo Club (Switzerland)...... 185 58,941
Frost Group (UK)................. 8,600 10,658
Games Workshop Group (UK)........ 7,000 79,008
Guangnan Holdings
(Hong Kong)................... 48,000 74,971
Guangnan Holdings (Warrants)*
(Hong Kong)................... 10,000 5,954
RETAILING (continued)
Hamley's (UK).................... 4,100 17,562
Hero (Switzerland)............... 150 83,762
Hornbach Baumarkt
(Germany)..................... 1,530 63,810
Jardine International Motor
Holdings (Hong Kong).......... 42,000 53,130
Moebel Walther (Germany)......... 2,700 157,990
RDO Equipment
(Class A)* (US)............... 4,800 107,400
Sa Sa International Holdings*
(Hong Kong)................... 36,000 11,908
Selecta Group * (Switzerland).... 920 139,938
Sundrug (Japan).................. 2,400 52,402
Tsutsumi Jewelry (Japan)......... 3,000 75,983
Xebio (Japan).................... 3,600 88,664
-----------
1,243,214
-----------
SPECIALTY CHEMICALS -- 0.1%
Lautan Luas* (Indonesia)......... 25,000 26,727
-----------
SUPPORT SERVICES -- 1.7%
CMG (UK)......................... 10,400 227,068
CRT Group (UK)................... 27,000 107,570
Henry Walker Group (Australia)... 16,000 33,571
-----------
368,209
-----------
TECHNOLOGY -- 1.7%
Asyst Technologies* (US)......... 2,900 126,875
BTG (UK)......................... 5,000 52,483
Credence Systems* (US)........... 3,125 93,652
PMC-Sierra* (US)................. 4,000 104,750
-----------
377,760
-----------
TELECOMMUNICATIONS -- 0.6%
Aerial Communications* (US)...... 7,300 62,963
Arch Communications
Group* (US)................... 7,600 58,900
-----------
121,863
-----------
TEXTILES AND APPAREL -- 0.4%
Esprit Holdings (Hong Kong)...... 46,000 32,658
Tokyo Style (Japan).............. 4,000 55,546
-----------
88,204
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-22 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares or
Principal
Amount Value
-------- -----
TRANSPORTATION -- 1.9%
Celadon Group* (US).............. 6,000 $ 68,250
Dawson Group (UK)................ 23,600 82,443
Iino Kaiun* (Japan).............. 26,000 79,703
Kwong Chung Bus Holdings
(Hong Kong).................. 8,000 4,957
National Express Group (UK)...... 11,500 85,799
Simon Transportation Services*
(US).......................... 4,600 91,138
-----------
412,290
-----------
VETERINARY PRODUCTS -- 0.6%
Virbac (France).................. 1,360 135,405
-----------
MISCELLANEOUS -- 0.3%
Taiwan American Fund*
(Taiwan)...................... 3,000 56,520
-----------
Total Common Stocks
(Cost $18,222,701)............ 20,089,179
-----------
PREFERRED STOCKS -- 0.7%
(Cost $148,363)
CONSUMER GOODS AND
SERVICES-- 0.7%
Gerry Weber International
(Germany)..................... 4,993 157,511
-----------
FIXED TIME
DEPOSITS -- 7.3%
First National Bank of Chicago,
Grand Cayman 5-1/2%,
7/1/1997...................... $800,000 $ 800,000
National Westminster Bank,
Nassau 5-7/8%, 7/1/1997...... 800,000 800,000
-----------
Total Fixed Time Deposits
(Cost $1,600,000)............. 1,600,000
-----------
Total Investments -- 99.5%
(Cost $19,971,064)............ 21,846,690
Other Assets Less
Liabilities-- 0.5%............ 113,792
-----------
Net Assets-- 100.0%.............. $21,960,482
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 77.0%
COMPUTER AND BUSINESS
SERVICES -- 13.9%
Admiral (UK)..................... 7,000 $ 46,462
Azlan Group (UK)................. 4,710 27,423
Brunel International*
(Netherlands)................. 500 11,112
BTG* (UK)........................ 2,400 25,192
CRT Group (UK)................... 8,700 34,662
CSK (Japan)...................... 1,000 37,904
Firearms Training
Systems* (US)................. 600 8,363
Information Highway*
(Sweden)...................... 2,000 20,995
Logica (UK)...................... 1,740 20,044
COMPUTER AND BUSINESS
SERVICES (continued)
M.M.T. Computing (UK)............ 5,000 40,756
Panavision* (US)................. 300 5,981
Secom (Japan).................... 1,000 73,450
-----------
352,344
-----------
COMPUTER HARDWARE/
PERIPHERALS -- 12.0%
Astec (UK)....................... 12,600 28,925
Canon (Japan).................... 2,000 54,498
EMC* (US)........................ 1,000 39,000
In Focus Systems* (US)........... 350 9,034
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-23 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares Value
-------- -----
COMPUTER HARDWARE/
PERIPHERALS (continued)
Lexmark International Group
(Class A)* (US)............... 900 $ 27,337
Mylex* (US)...................... 300 2,869
Quantum* (US).................... 1,000 20,344
Read-Rite* (US).................. 700 14,591
Storage Technology* (US)......... 800 35,600
TDK (Japan)...................... 1,000 73,450
-----------
305,648
-----------
COMPUTER SOFTWARE -- 6.9%
Activision* (US)................. 400 5,750
BMC Software* (US)............... 400 22,175
Cadence Design
Systems* (US)................. 400 13,400
Cap Gemini* (France)............. 400 21,104
Informatics Holdings
(Singapore)................... 70,000 41,862
Network General* (US)............ 600 8,906
Parametric Technology* (US)...... 300 12,759
Structural Dynamics Research*
(US).......................... 1,000 26,281
Synopsys* (US)................... 500 18,453
3DO* (US)........................ 1,400 4,944
-----------
175,634
-----------
DISTRIBUTORS -- 2.1%
Abacus Polar (UK)................ 8,500 26,371
Premier Farnell (UK)............. 3,500 27,277
-----------
53,648
-----------
ELECTRONICS -- 7.6%
Adaptec* (US).................... 500 17,375
ADFlex Solutions* (US)........... 300 4,538
American Power Conversion*
(US).......................... 600 11,344
Elec & Eltek International
Holdings (Hong Kong).......... 150,000 44,049
Hadco* (US)...................... 300 19,575
Hirose Electronics (Japan)....... 600 41,188
Venture Manufacturing
(Singapore)................... 11,000 35,854
VERO Group (UK).................. 12,500 20,274
-----------
194,197
-----------
ELECTRONICS CAPITAL
EQUIPMENT -- 15.1%
Amtek Engineering
(Singapore)................... 16,000 28,090
Applied Materials* (US).......... 500 35,391
ASM Lithography Holding*
(Netherlands)................. 800 46,725
Asyst Technologies* (US)......... 600 26,250
Credence Systems* (US)........... 500 14,984
Electro Scientific Industries*
(US).......................... 400 16,737
Etec Systems* (US)............... 650 27,848
KLA-Tencor* (US)................. 800 39,025
Novellus Systems* (US)........... 400 34,500
Siliconware Precision Industries
(GDRs)* (Taiwan).............. 3,150 53,550
Teradyne* (US)................... 700 27,475
Veeco Instruments* (US).......... 900 34,931
-----------
385,506
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 1.2%
Pharmacia &
Upjohn (Sweden)............... 920 31,120
-----------
NETWORKING/
COMMUNICATIONS
INFRASTRUCTURE -- 3.3%
Aspect Telecom* (US)............. 300 6,638
CIDCO* (US)...................... 400 5,488
DSP Communications* (US)......... 1,300 14,381
ECI Telecommunications
(Israel)...................... 1,000 29,781
L.M. Ericsson Telefon
(Series B) (Sweden)........... 700 27,624
-----------
83,912
-----------
SEMICONDUCTORS -- 10.3%
Advanced Micro Devices* (US)..... 600 21,600
International Rectifier* (US).... 900 16,762
Lattice Semiconductor* (US)...... 400 22,575
Maxim Integrated Products* ..(US) 600 34,088
Microchip Technology* (US)....... 900 26,747
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-24 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares or
Principal
Amount Value
-------- -----
SEMICONDUCTORS(continued)
PMC-Sierra* (US)................. 1,000 shs. $ 26,187
Rohm (Japan)..................... 1,000 103,057
Xilinx* (US)..................... 200 9,806
-----------
260,822
-----------
TELECOMMUNICATIONS -- 4.6%
Gemstar International* (US)...... 900 16,706
Millicom International Cellular*
(Luxembourg).................. 500 24,062
Nokia (Finland).................. 520 38,871
SK Telecommunications (ADRs)
(South Korea)................. 438 4,407
Videsh Sanchar Nigam (GDRs)*
(India)....................... 1,000 20,875
WorldCom* (US)................... 400 12,787
-----------
117,708
-----------
Total Common Stocks
(Cost $1,666,935)............. 1,960,539
-----------
FIXED TIME
DEPOSITS -- 15.7%
Bank of Montreal, Toronto 5-1/4%,
7/1/1997...................... $100,000 100,000
FIXED TIME
DEPOSITS (continued)
Canadian Imperial Bank
of Commerce, Grand
Cayman 5.35%, 7/1/1997........ 100,000 100,000
First National Bank of Chicago,
Grand Cayman 5-1/2%,
7/1/1997...................... 100,000 100,000
National Westminster Bank,
Nassau 5-7/8%, 7/1/1997....... 100,000 100,000
-----------
Total Fixed Time Deposits
(Cost $400,000)............... 400,000
-----------
Total Investments -- 92.7%
(Cost $2,066,935)............. 2,360,539
Other Assets Less
Liabilities-- 7.3%............ 186,617
-----------
Net Assets-- 100.0%.............. $2,547,156
-----------
-----------
- -------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO
Shares Value
-------- -----
COMMON STOCKS -- 92.5%
AUTOMOTIVE AND
RELATED -- 2.1%
Michelin (Class B) (France)...... 1,579 $ 94,836
Volkswagen (Germany)............. 150 113,760
-----------
208,596
-----------
BANKING -- 5.5%
Banco Bilbao Vizcaya (Spain)..... 1,148 93,296
CS Holdings (Switzerland)........ 948 121,788
Hang Seng Bank
(Hong Kong).................. 1,000 14,264
HSBC Holdings (Hong Kong)........ 800 24,061
BANKING (continued)
Malayan Banking (Malaysia)....... 750 7,874
PT Internasional Indonesia
(Indonesia)................... 12,000 10,300
Royal Bank of Scotland (UK)...... 8,500 79,112
Sumitomo Trust and Banking
(Japan)....................... 10,000 107,424
Uniao de Bancos Brasileiros
(GDRs)* (Brazil)............. 1,680 62,370
UTD Overseas Bank (Singapore)2,084 21,432
Westpac Banking (Australia)...... 3,000 18,046
-----------
559,967
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-25 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued)
Shares Value
-------- -----
BUILDING MATERIALS -- 1.0%
Caradon (UK)..................... 16,200 $ 54,302
Gujurat Ambuja Cement (GDSs)
(India)....................... 5,060 48,703
-----------
103,005
-----------
BUSINESS SERVICES-- 2.2%
CSK (Japan)...................... 4,300 162,987
Rentokil (UK).................... 16,800 58,968
-----------
221,955
-----------
CHEMICALS -- 2.9%
Akzo Nobel (Netherlands)......... 688 94,333
Bayer (Germany).................. 2,325 89,631
SKW Trostberg (Germany).......... 2,035 68,061
Toyo Ink Manufacturing
(Japan)...................... 10,000 40,000
-----------
292,025
-----------
COMMERCIAL SERVICES -- 0.5%
Benesse (Japan).................. 1,000 55,895
-----------
CONSTRUCTION AND
PROPERTY -- 3.3%
China Resources Enterprise
(Hong Kong)................... 2,000 9,810
DBS Land (Singapore)............. 5,000 15,808
Empresas ICA Sociedad
Controladora (ADRs)*
(Mexico)..................... 5,130 82,401
Hong Kong Land Holdings
(Hong Kong)................... 5,400 14,364
IJM (Malaysia).................. 4,000 8,399
IRSA Inversiones y
Representaciones (GDRs)
(Argentina)................... 1,500 65,625
Kawasan Industri Jababeka
(Indonesia)................... 7,000 9,354
Lend Lease (Australia)........... 1,250 26,416
New World Infrastructure*
(Hong Kong)................... 4,000 11,308
Sun Hung Kai Properties
(Hong Kong)................... 2,200 26,481
Swire Pacific (Hong Kong)....... 2,500 22,509
CONSTRUCTION AND
PROPERTY (continued)
United Engineers (Malaysia)...... 2,200 15,864
Wharf Holdings (Hong Kong)....... 3,000 13,011
Wing Tai Holdings (Singapore).... 5,000 14,409
-----------
335,759
-----------
CONSUMER PRODUCTS -- 1.6%
Electrolux (Series B) (Sweden)... 864 62,482
KAO (Japan)..................... 6,000 83,319
Matthew Clark (UK)............... 3,100 12,634
-----------
158,435
-----------
ELECTRONICS -- 10.1%
Alps Electric (Japan)............ 4,000 55,895
Murata Manufacturing
(Japan)....................... 5,000 199,127
Philips Electronics
(Netherlands)................. 1,870 134,014
Pioneer Electronic+ (Japan)...... 11,000 267,074
Samsung Electronics+
(South Korea)................. 204 22,480
Samsung Electronics (Rights)*
(South Korea)................. 3 111
SGS-Thomson
Microelectronics* (France)... 901 71,151
Toshiba (Japan).................. 42,000 270,341
-----------
1,020,193
-----------
FINANCIAL SERVICES -- 3.0%
BHW Holding* (Germany)........... 2,687 45,473
Credit Communal Holding/Dexia*
(Belgium)..................... 902 96,937
Nomura Securities (Japan)........ 7,000 96,594
Shohkoh Fund (Japan)............. 200 60,611
-----------
299,615
-----------
HEALTH AND HOUSEHOLD -- 3.5%
British Biotech (UK)............. 16,500 62,581
Novartis* (Switzerland).......... 71 113,542
Novo Nordisk (Class B)
(Denmark)..................... 484 52,801
Pliva (GDRs)* (Croatia)......... 1,850 28,120
Roche Holdings (Switzerland)..... 11 99,524
-----------
356,568
-----------
- -----------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
-- P-26 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued)
Shares Value
-------- -----
INDUSTRIAL GOODS AND
SERVICES -- 4.6%
ABB (Switzerland)................ 77 $ 116,595
Cie Generale des Eaux
(France)..................... 533 68,307
Cie Generale des Eaux
(Warrants)* (France).......... 681 431
FKI Babcock (UK)................. 26,125 73,880
Hutchison Whampoa*
(Hong Kong).................. 2,000 17,297
Mannesmann (Germany)............. 274 122,448
Rolls-Royce (UK)................. 18,000 68,719
-----------
467,677
-----------
INSURANCE -- 4.8%
AXA-UAP (France)................. 1,574 97,911
ING Groep (Netherlands).......... 2,917 134,558
Mitsui Marine &Fire (Japan)...... 19,000 137,397
Zurich Versicherung
(Switzerland)................. 305 121,415
-----------
491,281
-----------
LEISURE AND HOTELS -- 2.7%
Accor (France)................... 478 71,590
Granada Group (UK)............... 10,500 137,987
Sol Melia (Spain)................ 1,468 60,299
-----------
269,876
-----------
MANUFACTURING -- 4.1%
Desc (ADRs) (Mexico)............. 2,723 79,307
Hokkai Can (Japan)............... 8,000 40,664
Sankyo (Japan)................... 3,100 93,135
Tokyo Steel Manufacturing
(Japan)....................... 3,100 34,655
Tsubaki Nakashima (Japan)........ 4,000 37,729
Yamaha (Japan)................... 7,000 128,384
-----------
413,874
-----------
MEDIA -- 2.0%
Elsevier (Netherlands)........... 6,281 105,009
News Corp. (Australia)........... 3,600 17,254
WPP Group (UK)................... 19,000 77,910
-----------
200,173
-----------
METALS -- 7.1%
Companhia Vale do Rio Doce
(ADRs) (Brazil)............... 900 20,064
Hindalco Industries (GDRs)+
(India)....................... 1,500 52,500
Mitsubishi Materials (Japan)..... 45,000 180,000
Siderca (Class A) (Argentina).... 25,000 64,259
Sumitomo Metal Industries
(Japan)....................... 69,000 196,454
Thyssen (Germany)................ 373 89,765
Usinor Sacilor (France).......... 6,242 112,608
-----------
715,650
-----------
PAPER AND PACKAGING -- 0.5%
Bunzl (UK)....................... 15,500 50,150
-----------
RESOURCES -- 7.0%
British Petroleum (UK)........... 8,000 99,344
Broken Hill Proprietary
(Australia)................... 2,100 30,880
ELF Aquitaine (France)........... 917 98,946
ENI (Italy)...................... 15,071 85,479
MOL Magyar Olaj-es Gazipari
(GDRs)*+ (Hungary)............ 2,600 57,850
MOL Magyar Olaj-es Gazipari
(GDRs)* (Hungary)............. 3,000 66,750
Nippon Oil (Japan)............... 8,000 43,808
Petroleo Brasileiro (ADRs)
(Brazil)...................... 3,995 109,472
Tatneft (ADRs)*+ (Russia)........ 860 91,590
Tatneft (ADRs)* (Russia)......... 100 10,776
Woodside Petroleum
(Australia).................. 2,000 17,208
-----------
712,103
-----------
RESTAURANTS -- 0.3%
Denny's (Japan).................. 1,000 30,131
-----------
RETAILING -- 6.3%
Adidas (Germany)................. 576 64,435
Aoyama Trading (Japan)........... 1,200 38,568
Autobacs Seven (Japan)........... 1,000 79,301
- -----------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
-- P-27 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued)
Shares or
Principal
Amount Value
-------- -----
RETAILING (continued)
Carrefour Supermarche
(France)...................... 138shs$ 100,241
Dixons Group (UK)................ 7,000 54,380
Joshin Denki (Japan)............. 4,000 41,223
Metro (Germany).................. 879 95,809
Tesco (UK)....................... 21,044 129,350
Tsutsumi Jewelry (Japan)......... 1,300 32,926
-----------
636,233
-----------
TELECOMMUNICATIONS -- 6.5%
L.M. Ericsson Telefon (Series B)
(Sweden)...................... 3,027 119,456
Grupo Iusacell (ADRs)*
(Mexico)...................... 700 12,863
Portugal Telecom (ADRs)
(Portugal).................... 900 36,113
SPT Telecom
(Czech Republic).............. 200 20,985
Telebras (ADRs) (Brazil)......... 850 128,988
Telecel-Comunicacaoes
Pessoais* (Portugal).......... 410 34,011
Telecom Italia (Italy)........... 35,199 122,377
Telefonica de Espana (Spain)..... 2,958 85,553
Telefonica del Peru (ADRs)
(Peru)........................ 1,070 28,021
Telekomunikasi (ADRs)
(Indonesia)................... 550 17,875
Videsh Sanchar Nigam (GDRs)*+
(India)....................... 2,400 50,100
-----------
656,342
-----------
TOBACCO -- 1.1%
B.A.T. Industries (UK)........... 12,000 107,296
-----------
TRANSPORTATION -- 4.6%
East Japan Railway (Japan)....... 26 133,520
Lufthansa (Germany).............. 5,759 110,842
Mitsui O.S.K. Lines (Japan)..... 59,000 121,607
Railtrack Group (UK)............. 9,500 98,849
-----------
464,818
-----------
UTILITIES -- 4.1%
Companhia Energetica de Minas
Gerais (ADRs) (Brazil)...... 1,900 95,657
Electricidade de Portugal
(Portugal).................. 549 10,075
National Power (UK)............ 12,500 108,543
Tenaga Nasional (Malaysia)..... 3,000 14,620
United Utilities (UK).......... 8,000 87,899
VEBA (Germany)................. 1,687 95,327
-----------
412,121
-----------
MISCELLANEOUS -- 1.1%
Sime Darby (Malaysia).......... 4,400 14,643
Taiwan American Fund
(Taiwan).................... 1,500 28,260
Taiwan Fund (Taiwan)........... 1,200 14,025
Taiwan Opportunities Fund*
(Taiwan).................... 3,500 53,935
-----------
110,863
-----------
Total Common Stocks
(Cost $8,065,776)........... 9,350,601
-----------
FIXED TIME DEPOSITS -- 7.9%
First National Bank of Chicago,
Grand Cayman 5-1/2%,
7/1/1997.................... $400,000 400,000
National Westminster Bank,
Nassau 5-7/8%, 7/1/1997..... 400,000 400,000
-----------
Total Fixed Time Deposits
(Cost $800,000)............. 800,000
-----------
Total Investments -- 100.4%
(Cost $8,865,776)........... 10,150,601
Other Assets Less
Liabilities-- (0.4)%........... (39,940)
-----------
Net Assets-- 100.0%............ $10,110,661
-----------
-----------
- -----------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
-- P-28 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Principal
Amount Value
-------- -----
CORPORATE BONDS -- 93.6%
ADVERTISING -- 0.9%
Adams Outdoor Advertising
10-3/4%, 3/15/2006............. $100,000 $ 107,000
Outdoor Systems
8-7/8%, 6/15/2007+............. 50,000 48,812
-----------
155,812
-----------
AUTOMOTIVE AND
RELATED -- 0.3%
Petro Stopping Centers
10-1/2%, 2/1/2007+............. 50,000 52,125
-----------
BROADCASTING -- 3.5%
Allbritton Communications
9-3/4%, 11/30/2007............. 75,000 73,500
Capstar Broadcasting Partners
0% (12-3/4%**), 2/1/2009+...... 200,000 129,000
Paxson Communications
11-5/8%, 10/1/2002............. 200,000 217,500
SFX Broadcasting
10-3/4%, 5/15/2006............. 150,000 162,000
-----------
582,000
-----------
CABLE SYSTEMS -- 12.8%
Cablevision Systems 10-1/2%,
5/15/2016..................... 250,000 276,250
Charter Communications
Southeast 11-1/4%, 3/15/2006.. 250,000 270,625
Charter Communications
Southeast 0% (14%**),
3/15/2007..................... 250,000 170,000
Comcast 10-5/8%, 7/15/2012....... 150,000 178,500
Echostar 12-1/2%, 7/1/2002+...... 100,000 99,500
Heartland Wireless
Communications
14%, 10/15/2004............... 200,000 81,000
Intermedia Capital Partners IV,
11-1/4%, 8/1/2006............. 250,000 273,750
NTL 0% (11-1/2%**), 2/1/2006..... 100,000 69,750
NTL 10%, 2/15/2007+.............. 125,000 127,812
Rogers Cablesystems
11%, 12/1/2015................ 200,000 219,000
TCI Satellite Entertainment
10-7/8%, 2/15/2007+........... 250,000 252,500
CABLE SYSTEMS (continued)
Wireless One
13%, 10/15/2003............... 150,000 93,750
-----------
2,112,437
-----------
CELLULAR -- 4.3%
Centennial Cellular
10-1/8%, 5/15/2005............. 150,000 156,375
Commnet Cellular
11-1/4%, 7/1/2005.............. 150,000 173,625
Dobson Communications
11-3/4%, 4/15/2007............. 75,000 73,125
PriceCellular Wireless
0% (12-1/4%**), 10/1/2003...... 100,000 94,500
PriceCellular Wireless
10-3/4%, 11/1/2004............. 200,000 211,000
-----------
708,625
-----------
CHEMICALS -- 1.6%
NL Industries
11-3/4%, 10/15/2003............ 100,000 109,375
Texas Petrochemicals
11-1/8%, 7/1/2006.............. 150,000 162,750
-----------
272,125
-----------
COMPUTER AND RELATED
SERVICES -- 3.3%
Unisys 12%, 4/15/2003............ 250,000 271,875
Unisys 11-3/4%, 10/15/2004........ 250,000 271,250
-----------
543,125
-----------
CONSUMER PRODUCTS -- 10.3%
American Pad & Paper
13%, 11/15/2005............... 60,000 69,900
Anchor Advanced
11-3/4%, 4/1/2004+............. 100,000 106,500
Berry Plastics
12-1/4%, 4/15/2004............. 400,000 443,000
French Fragrances
10-3/8%, 5/15/2007+............ 150,000 155,250
Leiner Health Products
9-5/8%, 7/1/2007+.............. 15,000 15,244
Leslie's Poolmart
10-3/8%, 7/15/2004+............ 45,000 46,125
- ------------------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
-- P-29 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
-------- -----
CONSUMER PRODUCTS (continued)
North Atlantic Trading
11%, 6/15/2004+............... $ 50,000 $ 50,875
Renaissance Cosmetics
11-3/4%, 2/15/2004............ 75,000 79,125
Riddell Sports
10-1/2%, 7/15/2007+........... 150,000 154,125
Ryder TRS 10%, 12/1/2006......... 150,000 155,250
Spinnaker Industries
10-3/4%, 10/15/2006+.......... 150,000 151,875
Syratech 11%, 4/15/2007.......... 150,000 160,313
William Carter
10-3/8%, 12/1/2006............ 100,000 105,250
-----------
1,692,832
-----------
CONTAINERS -- 1.4%
Plastic Containers
10%, 12/15/2006............... 100,000 105,000
U.S. Can 10-1/8%, 10/15/2006..... 125,000 134,063
-----------
239,063
-----------
ENERGY -- 1.8%
Abraxas Petroleum
11-1/2%, 11/1/2004............. 100,000 108,500
ICO 10-3/8%, 6/1/2007+............ 50,000 51,625
Pacalta Resources
10-3/4%, 6/15/2004+............ 100,000 101,750
TransAmerican Energy
11-1/2%, 6/15/2002+............ 30,000 29,175
-----------
291,050
-----------
EQUIPMENT -- 1.1%
EV International
11%, 3/15/2007+............... 40,000 42,600
Williams Scotsman
9-7/8%, 6/1/2007+............. 125,000 125,625
-----------
168,225
-----------
FINANCIAL SERVICES -- 1.3%
AMRESCO
10%, 3/15/2004................ 100,000 102,000
Dollar Financial Group
10-7/8%, 11/15/2006........... 100,000 107,500
-----------
209,500
-----------
FOOD -- 2.2%
AmeriKing 10-3/4%, 12/1/2006..... 100,000 104,750
Gorges/Quik-to-Fix Foods
11-1/2%, 12/1/2006............ 150,000 155,250
International Home Foods
10-3/8%, 11/1/2006............ 100,000 103,500
-----------
363,500
-----------
FUNERAL -- 0.7%
Prime Succession Acquisition
10-3/4%, 8/15/2004............ 100,000 109,500
-----------
GAMING/HOTEL -- 10.7%
Alliance Gaming
12-7/8%, 6/30/2003............ 100,000 113,500
Aztar 13-3/4%, 10/1/2004......... 150,000 171,750
Casino America
12-1/2%, 8/1/2003............. 275,000 287,375
Casino Magic of Louisiana
13%, 8/15/2003+............... 90,000 76,500
Coast Hotels & Casinos
13%, 12/15/2002............... 250,000 280,625
Showboat 13%, 8/1/2009........... 125,000 144,688
Showboat Marina Casino
Partnership
13-1/2%, 3/15/2003............ 150,000 171.750
Trump Atlantic City Funding
11-1/4%, 5/1/2006............. 250,000 245,000
Trump Hotels & Casino Resorts
Funding 15-1/2%, 6/15/2005.... 240,000 279,600
-----------
1,770,788
-----------
HEALTH CARE/MEDICAL
PRODUCTS -- 3.2%
Dade International
11-1/8%, 5/1/2006............. 100,000 112,250
Graphic Controls
12%, 9/15/2005................ 100,000 112,000
IMED 9-3/4%, 12/1/2006+.......... 150,000 153,000
Paracelsus Healthcare
10%, 8/15/2006................ 150,000 153,562
-----------
530,812
-----------
- -----------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
-- P-30 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
-------- -----
LEISURE -- 2.7%
Affinity Group Holdings
11%, 4/1/2007+................ $100,000 $ 105,250
AMF Group 10-7/8%, 3/15/2006..... 40,000 43,400
AMF Group 0% (12-1/4%**),
3/15/2006..................... 100,000 71,625
Premier Parks
12%, 8/15/2003............... 150,000 167,250
Premier Parks
9-3/4%, 1/15/2007............. 50,000 51,875
-----------
439,400
-----------
MANUFACTURING -- 0.5%
Blue Bird Body
10-3/4%, 11/15/2006........... 50,000 53,375
International Knife & Saw
11-3/8%, 11/15/2006........... 25,000 26,813
-----------
80,188
-----------
METALS -- 1.8%
Renco Metals
11-1/2%, 7/1/2003............. 150,000 161,250
Royal Oak Mines
11%, 8/15/2006................ 150,000 144,000
-----------
305,250
-----------
PAGING -- 3.7%
Mobile Telecommunication
Technologies
13-1/2%, 12/15/2002........... 250,000 265,000
Paging Network
10%, 10/15/2008............... 200,000 193,000
ProNet 11-7/8%, 6/15/2005........ 150,000 148,125
-----------
606,125
-----------
PAPER AND PACKAGING -- 1.9%
Crown Paper 11%, 9/1/2005........ 150,000 150,750
S.D. Warren 12%, 12/15/2004...... 150,000 167,625
-----------
318,375
-----------
PUBLISHING -- 1.5%
Petersen Publishing
11-1/8%, 11/15/2006........... 150,000 168,000
Von Hoffmann Press
10-3/8, 5/15/2007+............ 80,000 84,400
-----------
252,400
-----------
RECORD STORAGE -- 1.5%
Pierce Leahy 11-1/8%, 7/15/2006.. 230,000 251,000
-----------
RESTAURANTS -- 0.6%
AFC Enterprises
10-1/4%, 5/15/2007+........... 100,000 100,500
-----------
RETAILING -- 1.7%
Central Tractor
10-5/8%, 4/1/2007............. 175,000 182,000
Cole National Group
9-7/8%, 12/31/2006............ 100,000 105,250
-----------
287,250
-----------
SUPERMARKETS -- 2.6%
Jitney-Jungle Stores of America
12%, 3/1/2006................. 250,000 279,687
Pathmark Stores
11-5/8%, 6/15/2002............ 150,000 152,250
-----------
431,937
-----------
TECHNOLOGY -- 1.4%
Therma-Wave
10-5/8%, 5/15/2004+........... 85,000 90,525
Viasystems 9-3/4%, 6/1/2007+..... 85,000 86,700
Wavetek 10-1/8%, 6/15/2007+...... 50,000 51,563
-----------
228,788
-----------
TELECOMMUNICATIONS -- 10.4%
Brooks Fiber Properties
0% (10-7/8%**), 3/1/2006...... 100,000 68,625
- ------------------------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
-- P-31 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount
or Shares Value
-------- -----
TELECOMMUNICATIONS (continued)
Brooks Fiber Properties
10%, 6/1/2007+................ $ 30,000 $ 30,525
Fonorola 12-1/2%, 8/15/2002...... 200,000 223,000
Globalstar 11-1/4%, 6/15/2004+... 35,000 32,988
ICG Holdings
0% (11-5/8%**), 3/15/2007+.... 150,000 88,500
Intermedia Communications of
Florida 13-1/2%, 6/1/2005..... 100,000 122,500
Intermedia Communications of
Florida 0% (12-1/2%**),
5/15/2006..................... 100,000 69,250
ITC DeltaCom 11%, 6/1/2007+...... 50,000 51,062
IXC Communications
12-1/2%, 10/1/2005............ 250,000 285,000
NEXTLINK Communications
12-1/2%, 4/15/2006+........... 250,000 268,750
Powertel 11-1/8%, 6/1/2007+...... 40,000 40,400
Qwest Communications
International
10-7/8%, 4/1/2007+............ 50,000 54,750
Sprint Spectrum
11%, 8/15/2006................ 200,000 222,000
Talton Holdings
11%, 6/30/2007+............... 75,000 75,750
Verio 13-1/2%, 6/15/2004+........ 75,000 75,937
-----------
1,709,037
-----------
TEXTILES -- 0.5%
Anvil Knitwear
10-7/8%, 3/15/2007+........... 75,000 76,125
-----------
THEATERS -- 1.6%
Plitt Theaters
10-7/8%, 6/15/2004............ 250,000 265,000
-----------
UTILITIES -- 1.8%
Midland Cogeneration Venture
11-3/4%, 7/23/2005............ 250,000 291,875
-----------
Total Corporate Bonds
(Cost $15,049,726)........... 15,444,769
-----------
PREFERRED STOCKS -- 4.2%
BROADCASTING -- 3.0%
Capstar Broadcasting
Partners 12%+................. 750 shs. 75,937
Chancellor Radio Broadcasting
12%+.......................... 1,300 148,525
SFX Broadcasting 12-5/8%......... 1,000 108,250
Sinclair Capital 11-5/8%+........ 1,500 159,000
-----------
491,712
-----------
FOOD -- 0.2%
AmeriKing 13%.................... 1,310 37,007
-----------
PAPER AND PACKAGING -- 0.6%
S.D. Warren 14%.................. 2,100 90,825
-----------
TELECOMMUNICATIONS -- 0.4%
NEXTLINK Communications
14%........................... 1,294 68,259
NEXTLINK Communications
(Warrants)+................... 1,250 1,250
-----------
69,509
-----------
Total Preferred Stocks
(Cost $642,570)............... 689,053
-----------
CONVERTIBLE PREFERRED STOCKS -- 0.3%
(Cost $50,000)
BROADCASTING -- 0.3%
Evergreen Media 6%+.............. 1,000 55,125
-----------
Total Investments -- 98.1%
(Cost $15,742,296)............ 16,188,947
Other Assets Less
Liabilities-- 1.9%............ 320,819
-----------
Net Assets-- 100.0%.............. $16,509,766
-----------
-----------
- ------------------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
-- P-32 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Principal
Amount
or Shares Value
--------- -----
CONVERTIBLE
SECURITIES -- 25.0%
SUBORDINATED
CONVERTIBLE BONDS -- 7.9%
DIVERSIFIED -- 2.0%
MascoTech 4-1/2%, 12/15/2003.... $300,000 $ 274,125
-----------
ELECTRONICS -- 0.6%
Park Electrochemical 5-1/2%,
3/1/2006+.................... 100,000 89,750
-----------
ENERGY -- 2.3%
Santa Fe Pipelines 11.162%,
8/15/2010.................... 250,000 308,750
-----------
TECHNOLOGY -- 2.1%
Xilinx 5-1/4%, 11/1/2002+....... 250,000 288,438
-----------
TRANSPORTATION -- 0.9%
Airborne Freight
6-3/4%, 8/15/2001............ 100,000 117,000
-----------
Total Subordinated
Convertible Bonds
(Cost $893,310).............. 1,078,063
-----------
CONVERTIBLE PREFERRED
STOCKS -- 17.1%
DRUGS AND HEALTH
CARE -- 1.8%
McKesson 5%+.................... 4,000 shs. 243,000
-----------
ENERGY -- 2.8%
Snyder Oil (Class A) 6%.......... 5,000 126,250
Unocal 6-1/4%.................... 4,464 257,796
-----------
384,046
-----------
ENVIRONMENTAL
SERVICES -- 1.8%
Browning-Ferris
Industries 7-1/4%............. 7,500 249,375
-----------
INDUSTRIAL EQUIPMENT -- 1.0%
Greenfield Capital Trust 6%+..... 3,000 139,125
-----------
INSURANCE -- 4.2%
FSA 7-5/8%....................... 7,500 263,437
St. Paul Capital 6%.............. 4,500 311,625
-----------
575,062
-----------
OFFICE EQUIPMENT-- 1.7%
IKON Office Solutions $5.04...... 3,500 225,313
-----------
RETAILING -- 0.8%
Kmart Financing 7-3/4%............ 2,000 109,750
-----------
TRANSPORTATION -- 1.9%
Sea Containers $4.00............. 5,000 251,250
-----------
MISCELLANEOUS -- 1.1%
Corning (Delaware) 6%............ 1,700 147,900
-----------
Total Convertible Preferred Stocks
(Cost $2,090,138)............. 2,324,821
-----------
Total Convertible Securities
(Cost $2,983,448)............. 3,402,884
-----------
CORPORATE BONDS -- 23.2%
AUTOMOTIVE -- 5.1%
Chrysler Financial 6-1/2%,
6/15/1998..................... $200,000 200,917
Ford Motor Credit 6-3/4%,
8/15/2008..................... 250,000 241,548
General Motors Acceptance 5-5/8%,
2/1/1999...................... 250,000 247,639
-----------
690,104
-----------
- --------------
+ Rule 144A security.
See Notes to Financial Statements.
-- P-33 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Portfolios of Investments (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount
or Shares Value
--------- -----
BANKING AND FINANCE -- 2.6%
Capital One Bank 8-1/8%,
3/1/2000...................... $250,000 $ 258,362
First USA Bank
5-3/4%, 1/15/1999............. 100,000 99,242
-----------
357,604
-----------
CONSUMER GOODS AND
SERVICES -- 2.2%
Harman International Industries
7.32%, 7/1/2007............... 300,000 299,157
-----------
ELECTRONICS -- 0.1%
StreamLogic 14%, 10/7/1998....... 33,999 11,900
-----------
FUNERAL SERVICES -- 2.2%
Loewen Group International
7-1/2%, 4/15/2001.............. 300,000 303,774
-----------
MEDIA -- 2.5%
Time Warner 9-1/8%, 1/15/2013..... 300,000 333,433
-----------
PAPER AND PACKAGING -- 2.3%
Owens-Illinois 7.85%,
5/15/2004..................... 300,000 305,996
-----------
RETAILING -- 4.0%
Federated Department Stores 10%,
2/15/2001..................... 500,000 548,755
-----------
TRANSPORTATION -- 2.2%
Norfolk Southern
6.95%, 5/1/2002............... 300,000 303,277
-----------
Total Corporate Bonds
(Cost $3,216,971)............. 3,154,000
-----------
Shares Value
--------- -----
COMMON STOCKS -- 21.7%
CONSUMER GOODS AND
SERVICES -- 0.7%
General Mills.................... 1,500 shs. 97,687
-----------
DIVERSIFIED -- 0.7%
Tenneco.......................... 2,000 90,375
-----------
ELECTRIC AND GAS
UTILITIES -- 2.2%
AGL Resources.................... 6,000 123,750
CINergy.......................... 1,000 34,813
FPL Group........................ 3,000 138,188
-----------
296,751
-----------
FOOD -- 3.8%
ConAgra.......................... 8,141 522,042
-----------
INDUSTRIAL EQUIPMENT -- 1.3%
Cooper Industries................ 1,332 66,267
General Signal................... 2,500 109,062
-----------
175,329
-----------
PAPER AND PACKAGING -- 1.9%
Union Camp....................... 2,000 100,000
Weyerhaeuser..................... 3,000 156,000
-----------
256,000
-----------
RETAILING -- 0.3%
Kmart............................ 3,200 39,200
-----------
STEEL -- 1.0%
Inland Steel Industries.......... 5,406 141,232
-----------
- ---------------
See Notes to Financial Statements.
-- P-34 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
June 30, 1997
- ------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Shares or
Principal
Amount Value
--------- -----
TRANSPORTATION -- 5.7%
CNF Transportation............... 10,000 shs. $ 322,500
Consolidated Freightways*........ 5,000 82,031
GATX............................. 5,747 331,889
NFC.............................. 20,000 43,417
-----------
779,837
-----------
UTILITIES/
TELECOMMUNICATIONS -- 4.1%
Bell Atlantic.................... 4,000 303,500
GTE.............................. 3,000 131,625
SBC Communications............... 2,000 123,750
-----------
558,875
-----------
Total Common Stocks
(Cost $2,165,956)............. 2,957,328
-----------
US GOVERNMENT
SECURITIES -- 7.5%
US Treasury Notes
7-3/4%, 12/31/1999............ $500,000 517,969
US Treasury Notes
6-1/2%, 5/15/2005............. 500,000 499,375
-----------
Total US Government Securities
(Cost $1,036,718)............. 1,017,344
-----------
REPURCHASE
AGREEMENTS -- 20.9%
(Cost $2,850,000)
HSBC Securities, Inc., 5%, dated
6/25/1997, maturing 7/2/1997
collateralized by: $2,911,000
US Treasury Notes 4-3/4%,
8/31/1998, with a fair market
value of $2,918,119........... 2,850,000 2,850,000
-----------
Total Investments -- 98.3%
(Cost $12,253,093)............ 13,381,556
Other Assets Less
Liabilities-- 1.7% 227,381
-----------
Net Assets-- 100.0% $13,608,937
-----------
-----------
- -----------------
* Non-income producing security.
See Notes to Financial Statements.
-- P-35 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) June 30, 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Seligman Seligman Cash Common Communications
Bond Capital Management Stock and Information
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ----------- ----------- --------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings............................ $4,844,567 $17,240,546 $ -- $34,230,244 $68,879,616
Short-term holdings........................... 450,000 1,150,000 9,319,384 11,475,000 3,475,000
---------- ----------- ----------- ----------- -----------
Total Investments............................. 5,294,567 18,390,546 9,319,384 45,705,244 72,354,616
Cash.......................................... 300,932 208,215 -- -- 16,256
Receivable for securities sold................ 403,444 181,512 -- -- 716,804
Interest and dividends receivable............. 64,110 4,378 14,989 43,945 3,878
Receivable for Capital Stock sold............. 15,174 9,980 157,262 41,029 1,930,003
Receivable from associated companies.......... 1,910 26,258 3,890 -- --
Unrealized appreciation on foreign
currencies and forward currency
contracts................................. -- -- -- -- --
---------- ----------- ----------- ----------- -----------
Total Assets.................................. 6,080,137 18,820,889 9,495,525 45,790,218 75,021,557
---------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities purchased.............. 200,000 1,409,847 -- 172,845 712,850
Payable for Capital Stock repurchased......... 494 1,028 151 2,691 412,500
Payable to custodian.......................... -- -- 5,250 153,341 --
Unrealized depreciation on foreign
currencies and forward currency
contracts.................................. -- -- -- -- --
Accrued expenses, taxes, and other............ 12,209 18,803 11,919 34,961 68,545
---------- ----------- ----------- ----------- -----------
Total Liabilities............................. 212,703 1,429,678 17,320 363,838 1,193,895
---------- ----------- ----------- ----------- -----------
Net Assets.................................... $5,867,434 $17,391,211 $ 9,478,205 $45,426,380 $73,827,662
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
COMPOSITION OF NET ASSETS:
Capital Stock, at par......................... $ 578 $ 995 $ 9,479 $ 2,503 $ 4,665
Additional paid-in capital.................... 5,720,852 13,909,665 9,469,124 32,236,021 67,412,997
Undistributed/accumulated
net investment income (loss).............. 161,496 14,457 -- 401,251 (139,142)
Undistributed/accumulated net
realized gain (loss)...................... (79,975) 702,001 (398) 1,148,536 (2,090,429)
Net unrealized appreciation
of investments............................ 64,483 2,764,093 -- 11,638,069 8,639,571
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts................ -- -- -- -- --
---------- ----------- ----------- ----------- -----------
Net Assets.................................... $5,867,434 $17,391,211 $9,478,205 $45,426,380 $73,827,662
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
Shares of Capital Stock Outstanding
($.001 par value).......................... 578,445 995,383 9,478,603 2,502,654 4,664,882
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
Net Asset Value per Share..................... $10.14 $17.47 $1.00 $18.15 $15.83
---------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- -----------
- -----------------
See Notes to Financial Statements.
</TABLE>
-- P-36 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) (continued) June 30,1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Henderson Henderson Henderson
Seligman Global Growth Global Smaller Global
Frontier Opportunities Companies Technology
Portfolio Portfolio Portfolio Portfolio
----------- ------------- ------------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings............................ $38,340,997 $3,916,333 $20,246,690 $1,960,539
Short-term holdings........................... -- -- 1,600,000 400,000
----------- ---------- ----------- ----------
Total Investments............................. 38,340,997 3,916,333 21,846,690 2,360,539
Cash.......................................... 278,953 388,979 184,832 175,352
Receivable for securities sold................ 52,080 -- 68,732 24,742
Interest and dividends receivable............. 2,113 4,595 24,125 1,278
Receivable for Capital Stock sold............. 197,534 22,773 39,651 2,714
Receivable from associated companies.......... -- 2,792 2,235 2,050
Unrealized appreciation on foreign
currencies and forward currency
contracts................................. -- -- 8,044 --
----------- ---------- ----------- ----------
Total Assets.................................. 38,871,677 4,335,472 22,174,309 2,566,675
----------- ---------- ----------- ----------
LIABILITIES:
Payable for securities purchased.............. 221,212 165,716 178,654 9,027
Payable for Capital Stock repurchased......... -- -- -- 2,698
Payable to custodian.......................... -- -- -- --
Unrealized depreciation on foreign
currencies and forward currency
contracts.................................. -- -- 20 --
Accrued expenses, taxes, and other............ 39,746 10,547 35,153 7,794
----------- ---------- ----------- ----------
Total Liabilities............................. 260,958 176,263 213,827 19,519
----------- ---------- ----------- ----------
Net Assets.................................... $38,610,719 $4,159,209 $21,960,482 $2,547,156
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
COMPOSITION OF NET ASSETS:
Capital Stock, at par......................... $ 2,346 $ 369 $ 1,557 $ 227
Additional paid-in capital.................... 33,945,529 3,737,365 19,787,965 2,322,941
Undistributed/accumulated
net investment income (loss).............. (74,100) 6,593 25,400 (2,865)
Undistributed/accumulated net
realized gain (loss)...................... 754,607 (15,355) 261,865 (66,771)
Net unrealized appreciation
of investments............................ 3,982,337 463,891 3,277,801 281,365
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts................ -- (33,654) (1,394,106) 12,259
----------- ---------- ----------- ----------
Net Assets.................................... $38,610,719 $4,159,209 $21,960,482 $2,547,156
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
Shares of Capital Stock Outstanding
($.001 par value).......................... 2,345,686 369,463 1,556,534 226,586
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
Net Asset Value per Share..................... $16.46 $11.26 $14.11 $11.24
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
Seligman Seligman
Henderson High-Yield Seligman
International Bond Income
Portfolio Portfolio Portfolio
------------- ---------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings............................ $ 9,350,601 $16,188,947 $10,330,639
Short-term holdings........................... 800,000 -- 3,050,917
----------- ----------- -----------
Total Investments............................. 10,150,601 16,188,947 13,381,556
Cash.......................................... 270,857 57,780 160,686
Receivable for securities sold................ -- 99,653 302,214
Interest and dividends receivable............. 35,687 350,479 95,353
Receivable for Capital Stock sold............. 19 3,167 2,030
Receivable from associated companies.......... 1,682 2,759 --
Unrealized appreciation on foreign
currencies and forward currency
contracts................................. 8,809 -- --
----------- ----------- -----------
Total Assets.................................. 10,467,655 16,702,785 13,941,839
----------- ---------- -----------
LIABILITIES:
Payable for securities purchased.............. 268,330 173,809 300,000
Payable for Capital Stock repurchased......... 52,339 -- 16,872
Payable to custodian.......................... -- -- --
Unrealized depreciation on foreign
currencies and forward currency
contracts.................................. 12,573 -- --
Accrued expenses, taxes, and other............ 23,752 19,210 16,030
----------- ----------- -----------
Total Liabilities............................. 356,994 193,019 332,902
----------- ----------- -----------
Net Assets.................................... $10,110,661 $16,509,766 $13,608,937
----------- ----------- -----------
----------- ----------- -----------
COMPOSITION OF NET ASSETS:
Capital Stock, at par......................... $ 682 $ 1,394 $ 1,208
Additional paid-in capital.................... 8,472,832 15,489,557 12,251,628
Undistributed/accumulated
net investment income (loss).............. 36,397 644,901 343,185
Undistributed/accumulated net
realized gain (loss)...................... 320,085 (72,737) (115,558)
Net unrealized appreciation
of investments............................ 1,544,340 446,651 1,119,872
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts................ (263,675) -- 8,602
----------- ----------- -----------
Net Assets.................................... $10,110,661 $16,509,766 $13,608,937
----------- ----------- -----------
----------- ----------- -----------
Shares of Capital Stock Outstanding
($.001 par value).......................... 682,320 1,393,910 1,207,661
----------- ----------- -----------
----------- ----------- -----------
Net Asset Value per Share..................... $14.82 $11.84 $11.27
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
- -----------------------
See Notes to Financial Statements.
-- P-37 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Operations (unaudited) For the Six Months Ended June 30, 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Seligman Seligman Cash Common Communications
Bond Capital Management Stock and Information
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ---------- --------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.......................................... $180,211 $ 31,178 $261,062 $ 237,578 $ 119,269
Dividends*........................................ -- 33,935 -- 272,833 15,071
-------- ---------- -------- ---------- ----------
Total Investment Income........................... 180,211 65,113 261,062 510,411 134,340
-------- ---------- -------- ---------- ----------
EXPENSES:
Management fees................................... 10,313 31,145 19,354 80,677 242,223
Auditing fees..................................... 3,050 5,050 4,100 10,050 14,700
Shareholder reports and
communications................................. 2,389 2,389 2,389 2,389 1,361
Custody and related services...................... 1,449 7,797 9,555 8,302 7,594
Directors' fees and expenses...................... 1,373 1,402 1,382 1,466 1,526
Registration...................................... 1,249 1,890 1,584 4,333 3,288
Legal fees........................................ 852 852 852 852 852
Miscellaneous..................................... 386 465 432 713 861
-------- ---------- -------- ---------- ----------
Total Expenses Before
Waiver/Reimbursement........................... 21,061 50,990 39,648 108,782 272,405
Waiver/reimbursement of expenses.................. (5,593) (4,262) (39,648) -- --
-------- ---------- -------- ---------- ----------
Total Expenses After Waiver/
Reimbursement.................................. 15,468 46,728 -- 108,782 272,405
-------- ---------- -------- ---------- ----------
Net Investment Income (Loss)...................... 164,743 18,385 261,062 401,629 (138,065)
-------- ---------- -------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments........... (25,504) 702,001 -- 1,143,487 1,455,856
Net realized loss from foreign
currency transactions.......................... -- -- -- -- --
Net change in unrealized appreciation
of investments................................. 1,110 656,745 -- 3,908,598 3,827,436
Netchange in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign currencies
and forward currency contracts................. -- -- -- -- --
-------- ---------- -------- ---------- ----------
Net Gain (Loss) on Investments
and Foreign Currency
Transactions................................... (24,394) 1,358,746 -- 5,052,085 5,283,292
-------- ---------- -------- ---------- ----------
Increase in Net Assets
from Operations................................ $140,349 $1,377,131 $261,062 $5,453,714 $5,145,227
-------- ---------- -------- ---------- ----------
-------- ---------- -------- ---------- ----------
<FN>
- --------------------
* Net of foreign tax withheld as follows: $ -- $ 238 $ -- $ 1,214 $ 835
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-38 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Operations (unaudited) (continued)
For the Six Months Ended June 30, 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Henderson Henderson Henderson
Seligman Global Growth Global Smaller Global
Frontier Opportunities Companies Technology
Portfolio Portfolio Portfolio Portfolio
---------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.......................................... $ 58,417 $ 9,502 $ 32,160 $ 4,703
Dividends*........................................ 13,726 16,822 130,720 5,878
---------- -------- ---------- --------
Total Investment Income........................... 72,143 26,324 162,880 10,581
---------- -------- ---------- --------
EXPENSES:
Management fees................................... 124,194 13,443 93,488 9,486
Auditing fees..................................... 8,250 2,300 5,400 2,250
Shareholder reports and
communications................................. 1,361 1,361 1,361 1,361
Custody and related services...................... 5,512 13,526 42,423 6,028
Directors' fees and expenses...................... 1,431 1,345 1,388 1,345
Registration...................................... 3,043 1,782 2,470 1,178
Legal fees........................................ 852 852 852 852
Miscellaneous..................................... 523 331 420 331
---------- -------- ---------- --------
Total Expenses Before
Waiver/Reimbursement........................... 145,166 34,940 147,802 22,831
Waiver/reimbursement of expenses.................. -- (16,119) (16,915) (9,553)
---------- -------- ---------- --------
Total Expenses After Waiver/
Reimbursement.................................. 145,166 18,821 130,887 13,278
---------- -------- ---------- --------
Net Investment Income (Loss)...................... (73,023) 7,503 31,993 (2,697)
---------- -------- ---------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments........... 754,607 13,775 279,934 (61,900)
Net realized loss from foreign
currency transactions.......................... -- (20,088) (56,980) (4,717)
Net change in unrealized appreciation
of investments................................. 2,798,324 433,305 2,884,673 221,703
Netchange in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign currencies
and forward currency contracts................. -- (25,830) (1,228,937) 3,398
---------- -------- ---------- --------
Net Gain (Loss) on Investments
and Foreign Currency
Transactions................................... 3,552,931 401,162 1,878,690 158,484
---------- -------- ---------- --------
Increase in Net Assets
from Operations................................ $3,479,908 $408,665 $1,910,683 $155,787
---------- -------- ---------- --------
---------- -------- ---------- --------
<FN>
- ------------------
* Net of foreign tax withheld as follows: $ -- $ 1,477 $ 19,706 $ 540
See Notes to Financial Statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Seligman Seligman
Henderson High-Yield Seligman
International Bond Income
Portfolio Portfolio Portfolio
------------- ---------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.......................................... $ 16,798 $678,367 $254,153
Dividends*........................................ 87,063 14,250 133,199
---------- -------- --------
Total Investment Income........................... 103,861 692,617 387,352
---------- -------- --------
EXPENSES:
Management fees................................... 40,221 33,418 26,799
Auditing fees..................................... 3,450 4,150 4,750
Shareholder reports and
communications................................. 1,361 1,361 2,389
Custody and related services...................... 40,063 13,348 2,225
Directors' fees and expenses...................... 1,360 1,373 1,397
Registration...................................... 1,806 2,496 1,289
Legal fees........................................ 852 852 852
Miscellaneous..................................... 386 387 487
---------- -------- --------
Total Expenses Before
Waiver/Reimbursement........................... 89,499 57,385 40,188
Waiver/reimbursement of expenses.................. (33,191) (10,593) --
---------- -------- --------
Total Expenses After Waiver/
Reimbursement.................................. 56,308 46,792 40,188
---------- -------- --------
Net Investment Income (Loss)...................... 47,553 645,825 347,164
---------- -------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments........... 428,275 (72,810) (115,558)
Net realized loss from foreign
currency transactions.......................... (120,614) -- (51)
Net change in unrealized appreciation
of investments................................. 891,209 181,704 705,898
Netchange in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign currencies
and forward currency contracts................. (90,099) -- (2,305)
---------- -------- --------
Net Gain (Loss) on Investments
and Foreign Currency
Transactions................................... 1,108,771 108,894 587,984
---------- -------- --------
Increase in Net Assets
from Operations................................ $1,156,324 $754,719 $935,148
---------- -------- --------
---------- -------- --------
<FN>
- ------------------
* Net of foreign tax withheld as follows: $ 10,779 $ -- $ --
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-39 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Changes in Net Assets
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Bond Portfolio Capital Portfolio Cash Management Portfolio
---------------------- ------------------------ -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
6/30/97 Ended 6/30/97 Ended 6/30/97 Ended
(unaudited) 12/31/96 (unaudited) 12/31/96 (unaudited) 12/31/96
---------- --------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 164,743 $ 269,490 $ 18,385 $ 34,560 $ 261,062 $ 483,722
Net realized gain (loss) on
investments..................... (25,504) 42,902 702,001 793,791 -- --
Net realized gain (loss)
from foreign currency
transactions.................... -- -- -- -- -- --
Net change in unrealized
appreciation/depreciation
of investments.................. 1,110 (291,839) 656,745 666,893 -- --
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies and
forward currency contracts...... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Increase in Net Assets
from Operations................. 140,349 20,553 1,377,131 1,495,244 261,062 483,722
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income.............. -- (269,359) -- (35,038) (261,062) (483,722)
Realized gain on investments....... -- -- -- (852,588) -- --
---------- ---------- ---------- ---------- ---------- ----------
Decrease in Net Assets From
Distributions................... -- (269,359) -- (887,626) (261,062) (483,722)
---------- ---------- ---------- ---------- ---------- ----------
CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares.......................... 1,189,851 2,178,074 3,536,688 6,122,881 13,379,606 16,950,432
Investment of dividends............ -- 269,359 -- 35,038 261,062 483,722
Shares issued in payment
of gain distributions........... -- -- -- 852,588 -- --
---------- ---------- ---------- ---------- ---------- ----------
Total.............................. 1,189,851 2,447,433 3,536,688 7,010,507 13,640,668 17,434,154
---------- ---------- ---------- ---------- ---------- ----------
Cost of shares repurchased......... (477,647) (1,680,294) (1,835,665) (2,598,584) (13,917,355) (15,478,773)
---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net
Assets From Capital
Share Transactions.............. 712,204 767,139 1,701,023 4,411,923 (276,687) 1,955,381
---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in
Net Assets...................... 852,553 518,333 3,078,154 5,019,541 (276,687) 1,955,381
Net Assets:
Beginning of Period................ 5,014,881 4,496,548 14,313,057 9,293,516 9,754,892 7,799,511
---------- ---------- ----------- ----------- ---------- ----------
End of Period...................... $5,867,434 $5,014,881 $17,391,211 $14,313,057 $9,478,205 $9,754,892
---------- ---------- ----------- ----------- ---------- ----------
---------- ---------- ----------- ----------- ---------- ----------
<FN>
- ---------------------
* Commencement of operations.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-40 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman
Common Stock Communications and Seligman
Portfolio Information Portfolio Frontier Portfolio
---------------------- ------------------------ -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
6/30/97 Ended 6/30/97 Ended 6/30/97 Ended
(unaudited) 12/31/96 (unaudited) 12/31/96 (unaudited) 12/31/96
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 401,629 $ 666,793 $ (138,065) $ (159,892) $ (73,023) $ (80,539)
Net realized gain (loss) on
investments..................... 1,143,487 4,441,023 1,455,856 (3,546,285) 754,607 3,410,956
Net realized gain (loss)
from foreign currency
transactions.................... -- (56,144) -- -- -- --
Net change in unrealized
appreciation/depreciation
of investments.................. 3,908,598 985,046 3,827,436 8,651,223 2,798,324 693,961
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies and
forward currency contracts...... -- 55,242 -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Increase in Net Assets
from Operations................. 5,453,714 6,091,960 5,145,227 4,945,046 3,479,908 4,024,378
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income.............. -- (669,792) -- -- -- --
Realized gain on investments....... -- (4,598,840) -- -- -- (3,392,252)
----------- ----------- ----------- ----------- ----------- -----------
Decrease in Net Assets From
Distributions................... -- (5,268,632) -- -- -- (3,392,252)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares.......................... 6,186,864 11,490,927 18,486,550 27,653,569 10,573,066 17,892,649
Investment of dividends............ -- 669,792 -- -- -- --
Shares issued in payment
of gain distributions........... -- 4,598,840 -- -- -- 3,392,252
----------- ----------- ----------- ----------- ----------- -----------
Total.............................. 6,186,864 16,759,559 18,486,550 27,653,569 10,573,066 21,284,901
----------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased......... (3,382,598) (9,250,532) (10,449,062) (10,395,761) (7,114,276) (2,721,117)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net
Assets From Capital
Share Transactions.............. 2,804,266 7,509,027 8,037,488 17,257,808 3,458,790 18,563,784
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in
Net Assets...................... 8,257,980 8,332,355 13,182,715 22,202,854 6,938,698 19,195,910
Net Assets:
Beginning of Period................ 37,168,400 28,836,045 60,644,947 38,442,093 31,672,021 12,476,111
----------- ----------- ----------- ----------- ----------- -----------
End of Period...................... $45,426,380 $37,168,400 $73,827,662 $60,644,947 $38,610,719 $31,672,021
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Seligman Seligman
Henderson Henderson
Global Growth Global Smaller
Opportunities Portfolio Companies Portfolio
-------------------------- -----------------------
Six Months Six Months
Ended 5/1/96* Ended Year
6/30/97 to 6/30/97 Ended
(unaudited) 12/31/96 (unaudited) 12/31/96
---------- --------- ----------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 7,503 $ 1,510 $ 31,993 $ 24,879
Net realized gain (loss) on
investments..................... 13,775 (9,589) 279,934 1,146,142
Net realized gain (loss)
from foreign currency
transactions.................... (20,088) 297 (56,980) 34,461
Net change in unrealized
appreciation/depreciation
of investments.................. 433,305 30,586 2,884,673 192,735
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies and
forward currency contracts...... (25,830) (7,824) (1,228,937) (129,401)
---------- ---------- ----------- -----------
Increase in Net Assets
from Operations................. 408,665 14,980 1,910,683 1,268,816
---------- ---------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income.............. -- (1,843) -- (21,782)
Realized gain on investments....... -- -- -- (1,150,819)
---------- ---------- ----------- -----------
Decrease in Net Assets From
Distributions................... -- (1,843) -- (1,172,601)
---------- ---------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares.......................... 2,691,785 1,707,364 3,895,487 11,760,606
Investment of dividends............ -- 1,843 -- 21,782
Shares issued in payment
of gain distributions........... -- -- -- 1,150,819
---------- ---------- ----------- -----------
Total.............................. 2,691,785 1,709,207 3,895,487 12,933,207
---------- ---------- ----------- -----------
Cost of shares repurchased......... (530,931) (132,654) (721,935) (989,791)
---------- ---------- ----------- -----------
Increase (Decrease) in Net
Assets From Capital
Share Transactions.............. 2,160,854 1,576,553 3,173,552 11,943,416
---------- ---------- ----------- -----------
Increase (Decrease) in
Net Assets...................... 2,569,519 1,589,690 5,084,235 12,039,631
Net Assets:
Beginning of Period................ 1,589,690 -- 16,876,247 4,836,616
---------- ---------- ----------- -----------
End of Period...................... $4,159,209 $1,589,690 $21,960,482 $16,876,247
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
<FN>
- ---------------------
* Commencement of operations.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-41 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman
Henderson Henderson Seligman
Global Technology International High-Yield Seligman
Portfolio Portfolio Bond Portfolio Income Portfolio
--------------------- -------------------- --------------------- -----------------------
Six Months Six Months Six Months Six Months
Ended 5/1/96* Ended Year Ended Year Ended Year
6/30/97 to 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended
(unaudited) 12/31/96 (unaudited) 12/31/96 (unaudited) 12/31/96 (unaudited) 12/31/96
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss). $ (2,697) $ (2,332) $ 47,553 $ 40,190 $ 645,825 $ 700,400 $ 347,164 $ 665,263
Net realized gain (loss) on
investments .............. (61,900) 9,847 428,275 99,382 (72,810) 71,419 (115,558) 188,849
Net realized gain (loss)
from foreign currency
transactions.............. (4,717) (762) (120,614) 29,228 -- -- (51) (24)
Net change in unrealized
appreciation/depreciation
of investments ........... 221,703 59,662 891,209 378,494 181,704 207,559 705,898 (75,436)
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currenciesand
forward currency contracts. 3,398 8,861 (90,099) (153,172) -- -- (2,305) 7,431
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Increase in Net Assets
From Operations .......... 155,787 75,276 1,156,324 394,122 754,719 979,378 935,148 786,083
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income........ -- -- -- (36,924) -- (700,656) -- (693,657)
Realized gain on investments. -- (10,437) (128,691) -- (71,346) -- (198,872)
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Decrease in Net Assets
From Distributions ....... -- (10,437) -- (165,615) -- (772,002) -- (892,529)
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares ................... 1,673,286 1,484,242 2,343,455 4,060,684 7,564,036 9,904,511 1,026,512 5,080,349
Investment of dividends -- -- -- 36,924 -- 700,656 -- 693,657
Shares issued in payment of
gain distributions ....... -- 10,437 -- 128,691 -- 71,346 -- 198,872
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Total ....................... 1,673,286 1,494,679 2,343,455 4,226,299 7,564,036 10,676,513 1,026,512 5,972,878
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Cost of shares repurchased... (645,632) (195,803) (631,390) (1,395,763) (2,985,349) (2,716,951) (2,069,513) (4,769,122)
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net
Assets From Capital
Share Transactions ....... 1,027,654 1,298,876 1,712,065 2,830,536 4,578,687 7,959,562 (1,043,001) 1,203,756
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
Increase (Decrease) in
Net Assets ............... 1,183,441 1,363,715 2,868,389 3,059,043 5,333,406 8,166,938 (107,853) 1,097,310
Net Assets:
Beginning of Period ......... 1,363,715 -- 7,242,272 4,183,229 11,176,360 3,009,422 13,716,790 12,619,480
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
End of Period ............... $2,547,156 $1,363,715 $10,110,661 $7,242,272 $16,509,766 $11,176,360 $13,608,937 $13,716,790
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
<FN>
- ---------------------
* Commencement of operations.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-42 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
- ------------------------------------------------------------------------------
1. Organization -- Seligman Portfolios, Inc. (the "Fund") is an open-end
diversified management investment company consisting of twelve separate
portfolios (the "Portfolios"): "Seligman Bond Portfolio" ("Bond Portfolio"),
"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 Frontier Portfolio"
("Frontier Portfolio"), "Seligman Henderson Global Growth Opportunities
Portfolio" ("Global Growth Opportunities Portfolio"), "Seligman Henderson Global
Smaller Companies Portfolio" ("Global Smaller Companies Portfolio"),"Seligman
Henderson Global Technology Portfolio" ("Global Technology Portfolio"),
"Seligman Henderson International Portfolio" ("International Portfolio"),
"Seligman High-Yield Bond Portfolio" ("High-Yield Bond Portfolio"), and
"Seligman Income Portfolio" ("Income Portfolio"), each designed to meet
different investment goals. Shares of the Fund are currently provided as the
investment medium for Canada Life of America Variable Annuity Account 2
("CLVA-2"), which is offered by Canada Life Insurance Company of America
("CLICA"), Canada Life of New York Variable Annuity Account 2 ("CLNYVA-2") which
is offered by Canada Life Insurance Company of New York ("CLNY"), and Canada
Life of America Annuity Account 3 ("CLVA-3"), which is offered by Canada Life
Insurance Company of America. CLVA-2 and CLNYVA-2 are registered as unit
investment trusts under the Investment Company Act of 1940, as amended (the
"1940 Act") and fund variable annuity contracts (the "CLVA-2 Contracts") issued
by CLICA and CLNY and distributed by Seligman Financial Services, Inc. CLVA-3 is
not registered or regulated as a unit investment trust under the 1940 Act in
reliance on the exemption provided in Section 3(c)(11) of the 1940 Act, and
funds variable annuity contracts (the "CLVA-3 Contracts") issued by CLICA and
distributed by Seligman Financial Services, Inc. CLVA-3 Contracts may be
purchased only by pension or profit-sharing employee benefit plans that satisfy
the requirements for qualification set forth in Section 401 of the Internal
Revenue Code of 1986, as amended. Shares of the Fund are also provided as the
investment medium for other variable annuity accounts established by CLICA or
its affiliates ("Canada Life Separate Accounts"). Shares of the Bond, Capital,
Cash Management, Common Stock, and Income Portfolios are also provided as the
investment medium for Seligman Mutual Benefit Plan (the "Mutual Benefit Plan"),
a separate account of MBLLife Assurance Corporation ("MBL Life"). However, 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 its Fixed Accumulation Account from the
Mutual Benefit Plan will not be accepted.
2. Significant Accounting Policies -- The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Fund:
a. Security Valuation --Investments in US Government securitiesandagencies,
bonds, convertible securities, and stocks are valued at the most current
market values or, in their absence, at fair market values 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. Foreign Securities -- The Portfolios may invest up to 10% of their total
assets in foreign securities (except Global Growth Opportunities Portfolio,
Global Smaller Companies Portfolio, Global Technology Portfolio, and
International Portfolio, which may invest up to 100% of their total assets in
foreign securities). Investments in foreign securities will usually be
denominated in foreign currencies, and the Portfolios may temporarily hold
funds in foreign currencies. The Portfolios may also invest in US
dollar-denominated American Depositary Receipts ("ADRs"), American Depositary
Shares ("ADSs"), European Depositary Receipts ("EDRs"), Global Depositary
Receipts ("GDRs"), and Global Depositary Shares ("GDSs"). ADRs and ADSs are
issued by domestic banks or trust companies and evidence ownership of
securities issued by foreign corporations. ADRs and ADSs are traded on United
States exchanges or over-the-counter and are not included in the 10%
limitation. EDRs,GDRs,and GDSs are receipts similar to ADRs and ADSs and are
typically issued by foreign banks or trust companies and traded in Europe.
The books and records of the Portfolios are maintained in US dollars. Foreign
currency amounts are translated into US dollars on the following basis:
(i) market value of investment securities, other assets and liabilities,
at the closing daily rate of exchange as reported by a pricing
service;
(ii) purchases and sales of investment securities, income and expenses, at
the rate of exchange prevailing on the respective dates of such
transactions.
The net asset values per share of Portfolios which invest in securities
denominated in foreign currencies will be affected by changes in currency
exchange rates. Changes in foreign currency exchange rates may also affect
the value of dividends and interest earned, gains and losses realized on
sales of securities, and net investment income and gains, if any, to be
distributed to shareholders of the Portfolios. The rate of exchange between
the US dollar and other currencies is determined by the forces of supply and
demand in the foreign exchange markets.
Net realized foreign exchange gains or 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 from the difference between
the amounts of dividends, interest and foreign withholding
-- P-43 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- ------------------------------------------------------------------------------
taxes recorded on the Portfolios' books, and the US dollar equivalent of
the amounts actually received or paid. Net unrealized foreign exchange gains
and losses arise from changes in the value of portfolio securities and other
foreign currency-denominated assets and liabilities at period end, resulting
from changes in exchange rates.
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.
e. Forward Currency Contracts -- The Global Growth Opportunities Portfolio,
Global Smaller Companies Portfolio, Global Technology Portfolio, and
International 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. Federal Taxes -- 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. Security Transactions and Related Investment Income --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, except that certain dividends from foreign
securities where the ex-dividend dates may have passed are recorded as soon
as the Fund is informed of the dividend.
f. Repurchase Agreements --The Portfolios may enter into repurchase
agreements with commercial banks and with broker/dealers deemed to be
creditworthy by J. & W. Seligman & Co. Incorporated (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.
g. Expense Allocations -- 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.
h. Distributions to Shareholders -- 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.
3. Purchases and Sales of Securities --Purchases and sales of portfolio
securities, excluding US Government obligations and short-term investments, for
the six months ended June 30, 1997, were as follows:
Portfolio Purchases Sales
-------- --------- -----
Bond $ 4,319,226 $ 2,919,099
Capital 9,227,328 6,608,635
Common Stock 6,264,568 5,952,891
Communications and Information 92,358,595 87,939,380
Frontier 22,372,189 16,463,596
Global Growth Opportunities 2,886,282 756,354
Global Smaller Companies 7,648,142 5,458,166
Global Technology 1,906,623 1,526,211
International 4,732,361 2,767,519
-- P-44 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Portfolio Purchases Sales
-------- --------- -----
High-Yield Bond $10,763,596 $5,259,085
Income 4,230,428 5,430,060
For the six months ended June 30, 1997, purchases and sales of US Government
obligations were $984,328 and $2,163,393, respectively, for the Bond Portfolio.
Identified cost of investments sold is used for both financial statement and
federal income tax purposes.
At June 30, 1997, with the exception of the Communications and Information
Portfolio, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes. With regard
to the Communications and Information Portfolio, the cost of investments was
$63,793,986. 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
-------- ------------ -----------
Bond $ 67,689 $ 3,206
Capital 3,304,675 540,583
Common Stock 11,807,711 169,641
Communications and Information 10,651,488 2,090,858
Frontier 5,442,792 1,460,455
Global Growth Opportunities 482,051 51,729
Global Smaller Companies 3,177,662 1,302,036
Global Technology 378,591 84,987
International 1,411,327 126,502
High-Yield Bond 652,202 205,551
Income 1,395,666 267,203
4. Management Fee, Administrative Services, and Other Transactions -- The
Manager manages the affairs of the Fund and provides orarrangesforthe necessary
personnel and facilities. SeligmanHendersonCo.(the"Subadviser"),an entity
owned50% each bytheManager and Henderson plc, supervises and directs the Fund's
foreign investments. 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 ManagerorbyHenderson plc. The Manager's
fee is calculated daily and payable monthly, equal to 0.40%, on an annual basis,
of Bond, Capital, Cash Management, Common Stock, 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 Global Growth Opportunities, Global Smaller Companies, Global Technology
and International Portfolios is calculated daily and payable monthly, equal to
an annual rate of 1.00% of the daily net assets of each Portfolio, of which
0.90% is paid to the Subadviser. The Manager has agreed to reimburse expenses,
other than the management fee, which exceed 0.20% per annum of the average daily
net assets of each of the Portfolios (except theCash Management, Global Growth
Opportunities, Global Smaller Companies, Global Technology and International
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. The Manager and Subadviser have agreed to
reimburse expenses, other than the management fee, which exceed 0.40% per annum
of the average daily net assets of theGlobal Growth Opportunities, Global
Smaller Companies, Global Technology and International Portfolios. For the six
months ended June 30, 1997, the Manager reimbursed expenses and/or waived fees
of $5,593, $4,262, $39,648, and $10,593 for the Bond, Capital, Cash Management,
and High-Yield Bond Portfolios, respectively. For the same period, the Manager
waived all its fee and the Subadviser waived a portion of its fee for the Global
Smaller Companies Portfolio and the International Portfolio, totalling $16,915
and $33,191, respectively. For the same period, the Manager and Subadviser
waived their fees and the Subadviser reimbursed expenses totalling $16,119 and
$9,553, for the Global Growth Opportunities Portfolio and the Global Technology
Portfolio, respectively.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the CLVA-2 Contracts and an affiliate of the Manager, received
concessions of $163,309 from Canada Life Insurance Company of America and
$12,891 from Canada Life Insurance Company of New York, after commissions paid
to dealers.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, and/or the Subadviser.
-- P-45 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- ------------------------------------------------------------------------------
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1997, 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. Loss Carryforward -- At December 31, 1996, the Bond Portfolio, the Cash
Management Portfolio, the Communications and Information Portfolio,andthe Global
Growth Opportunities Portfolio had net capital loss carryforwards for federal
income tax purposes of $54,471, $398, $3,288,623 and $9,630, respectively, which
are available for offset against future taxable net gains. These net capital
loss carryforwards will expire in varying amounts through 2004.
6. Outstanding Forward Exchange Currency Contracts -- At June 30, 1997, the Fund
had outstanding forward exchange currency contracts to purchase or sell foreign
currencies as follows:
<TABLE>
<CAPTION>
Unrealized
Foreign In Exchange Settlement Appreciation
Contract Currency for US $ Date US $ Value (Depreciation)
-------- -------- ---------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C>
GLOBAL SMALLER COMPANIES PORTFOLIO
Purchases:
British Pounds 4,916 8,196 7/1/97 8,178 $ (18)
Singapore Dollars 32,359 22,636 7/3/97 22,634 (2)
Hong Kong Dollars 341,086 44,025 7/7/97 44,028 3
-------
(17)
-------
Sales:
French Francs 1,849,312 320,000 8/14/97 315,082 4,918
German Deutschemarks 394,335 230,000 8/19/97 226,877 3,123
-------
8,041
-------
$ 8,024
========
INTERNATIONAL PORTFOLIO
Purchases:
Japanese Yen 910,661 7,957 7/2/97 7,953 $ (4)
French Francs 2,138,267 369,591 8/14/97 364,314 (5,277)
German Deutschemarks 394,335 229,966 8/19/97 226,877 (3,089)
Swiss Francs 217,950 153,996 8/19/97 150,031 (3,965)
-------
(12,335)
-------
Sales:
French Francs 695,892 118,229 7/2/97 118,436 (207)
French Francs 2,138,267 370,000 8/14/97 364,314 5,686
German Deutschemarks 394,335 230,000 8/19/97 226,877 3,123
Swiss Francs 217,950 150,000 8/19/97 150,031 (31)
-------
8,571
-------
$ (3,764)
====+===
</TABLE>
-- P-46 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
7. Capital Stock Transactions -- At June 30, 1997, there were 20,000,000 shares
of Capital Stock authorized for each of the Global Growth Opportunities and
Global Technology Portfolios; 80,000,000 shares for the Bond and Capital
Portfolios; and 100,000,000 shares for each of the Cash Management, Common
Stock, Communications and Information, Frontier, Global Smaller Companies,
International, High-Yield Bond, and Income Portfolios, all at a par value of
$.001 per share. Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
Bond Capital Cash Management
Portfolio Portfolio Portfolio
---------------------- -------------------- ---------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
-------- -------- --------- -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 119,281 214,510 212,787 371,812 13,379,606 16,950,432
Shares issued in payment
of dividends..................... -- 27,071 -- 2,189 261,062 483,722
Shares issued in payment
of gain distributions............ -- -- -- 53,253 -- --
------- ------- ------- ------- ---------- ----------
Total............................... 119,281 241,581 212,787 427,254 13,640,668 17,434,154
------- ------- ------- ------- ---------- ----------
Shares repurchased.................. (48,148) (165,022) (111,310) (156,642) (13,917,355) (15,478,773)
------- ------- ------- ------- ---------- ----------
Increase (Decrease)
in Shares........................ 71,133 76,559 101,477 270,612 (276,687) 1,955,381
------- ------- ------- ------- ---------- ----------
------- ------- ------- ------- ---------- ----------
<CAPTION>
Communications
Common Stock and Information Frontier
Portfolio Portfolio Portfolio
---------------------- --------------------- --------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 367,245 676,407 1,236,666 2,058,865 698,357 1,141,808
Shares issued in payment
of dividends..................... -- 41,705 -- -- -- --
Shares issued in payment
of gain distributions -- 286,354 -- -- -- 229,516
-------- --------- --------- --------- -------- ---------
Total............................... 367,245 1,004,466 1,236,666 2,058,865 698,357 1,371,324
-------- --------- --------- --------- -------- ---------
Shares repurchased.................. (199,668) (537,472) (701,243) (777,428) (466,918) (177,011)
-------- --------- --------- --------- -------- ---------
Increase in Shares.................. 167,577 466,994 535,423 1,281,437 231,439 1,194,313
-------- --------- --------- --------- -------- ---------
-------- --------- --------- --------- -------- ---------
</TABLE>
-- P-47 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Growth Global Smaller Global
Opportunities Companies Technology
Portfolio Portfolio Portfolio
-------------------- -------------------- ---------------------
Six Months 5/1/96* Six Months Year Six Months 5/1/96*
Ended to Ended Ended Ended to
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 260,602 173,750 299,486 877,250 156,341 150,969
Shares issued in payment
of dividends..................... -- 186 -- 1,708 -- --
Shares issued in payment
of gain distributions............ -- -- -- 90,260 -- 1,023
------- ------- ------- ------- ------- -------
Total............................... 260,602 173,936 299,486 969,218 156,341 151,992
------- ------- ------- ------- ------- -------
Shares repurchased.................. (51,479) (13,596) (54,466) (72,141) (61,872) (19,875)
------- ------- ------- ------- ------- -------
Increase in Shares.................. 209,123 160,340 245,020 897,077 94,469 132,117
======= ======= ======= ======= ======= =======
<CAPTION>
International High-Yield Bond Income
Portfolio Portfolio Portfolio
-------------------- -------------------- --------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
------- ------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 170,734 316,262 659,426 885,932 95,018 468,320
Shares issued in payment
of dividends..................... -- 2,864 -- 62,670 -- 65,750
Shares issued in payment
of gain distributions............ -- 9,983 -- 6,382 -- 18,850
------- ------- ------- ------- ------- -------
Total............................... 170,734 329,109 659,426 954,984 95,018 552,920
------- ------- ------- ------- ------- -------
Shares repurchased.................. (47,062) (108,146) (264,313) (242,875) (191,101) (443,660)
------- ------- ------- ------- ------- -------
Increase (Decrease)
in Shares........................ 123,672 220,963 395,113 712,109 (96,083) (109,260)
======= ======= ======= ======= ======= =======
<FN>
- -----------------------
* Commencement of operations.
</FN>
</TABLE>
8. Committed Line of Credit --Effective July 23, 1997, the Communications and
Information Portfolio, Frontier Portfolio, Global Growth Opportunities
Portfolio, Global Smaller Companies Portfolio, Global Technology Portfolio,
International Portfolio, and High-Yield Bond Portfolio, collectively, entered
into a $12 million committed line of credit facility with a group of banks.
Borrowing pursuant to the credit facility will be subject to interest at a rate
equal to the federal funds rate plus 0.50% per annum. The portfolios will incur
a commitment fee of 0.10% per annum on the unused portion of the credit
facility. The credit facility may be drawn upon only for temporary purposes and
is subject to certain other customary restrictions. The credit facility
commitment will expire one year from the date of the agreement but is renewable
with the consent of the participating banks.
-- P-48 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------
The Fund's financial highlights are presented below. "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 investors 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.
"Total return based on net asset value" measures each Portfolio's performance
assuming that investors purchased shares of a Portfolio at net asset value at
the beginning of the period, invested dividends and capital gains paid at net
asset value, and then sold their shares at the net asset value on the last day
of the period. The total returns exclude the effect of all administration fees
and asset based sales charges associated with variable annuity contracts. The
total returns for periods of less than one year are not annualized.
"Average commission rate paid" represents the average commission paid by the
Portfolios to purchase or sell portfolio securities. It is determined by
dividing the total commission dollars paid by the number of shares purchased and
sold during the period for which commissions were paid. This rate is provided
for the period beginning January 1, 1996.
<TABLE>
<CAPTION>
Bond Portfolio
--------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/97 -------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........ $9.890 $10.440 $9.270 $10.110 $10.660 $10.990
------- -------- ------- ------- ------- -------
Net investment income....................... 0.308 0.565 0.605 0.499 0.713 0.706
Net realized and unrealized gain (loss)
on investments.......................... (0.058) (0.552) 1.171 (0.841) 0.142 (0.092)
------- -------- ------- ------- ------- -------
Increase (Decrease) from
Investment Operations....................... 0.250 0.013 1.776 (0.342) 0.855 0.614
Dividends paid.............................. -- (0.563) (0.606) (0.498) (0.711) (0.772)
Distributions from net realized gain ....... -- -- -- -- (0.694) (0.172)
------- -------- ------- ------- ------- -------
Net Increase (Decrease) in Net Asset Value.. 0.250 (0.550) 1.170 (0.840) (0.550) (0.330)
------- -------- ------- ------- ------- -------
Net Asset Value, End of Period.............. $10.140 $9.890 $10.440 $9.270 $10.110 $10.660
======= ======== ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 2.53% 0.09% 19.18% (3.39)% 7.98% 5.60%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.............. 0.60%+ 0.60% 0.60% 0.60% 0.74% 1.00%
Net investment income to average net assets. 6.39%+ 5.97% 6.22% 5.12% 5.41% 6.22%
Portfolio turnover.......................... 116.88% 199.74% 114.42% 237.23% 33.21% 23.40%
Net Assets, End
of Period (000s omitted).................. $5,867 $5,015 $4,497 $3,606 $3,775 $4,750
Without management fee waiver and
expense reimbursement:++
Net investment income per share.......... $0.297 $0.545 $0.571 $0.430 $0.675
Ratios:
Expenses to average net assets........... 0.82%+ 0.79% 0.99% 1.31% 1.07%
Net investment income to average
net assets........................... 6.17%+ 5.78% 5.83% 4.41% 5.08%
<FN>
- ------------------------
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-49 --
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Financial Highlights (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Portfolio
-------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/97 ------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 1993 1992
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $16.010 $14.910 $12.700 $14.950 $16.980 $17.740
------- ------- ------- ------- ------- -------
Net investment income........................ 0.016 0.043 0.048 0.015 0.021 (0.022)
Net realized and unrealized gain
(loss) on investments...................... 1.444 2.121 3.385 (0.699) 1.928 1.202
Increase (Decrease) from ------- ------- ------- ------- ------- -------
Investment Operations...................... 1.460 2.164 3.433 (0.684) 1.949 1.180
Dividends paid............................... -- (0.042) (0.047) (0.018) (0.021) --
Distributions from net realized gain......... -- (1.022) (1.176) (1.548) (3.958) (1.940)
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Net Asset Value... 1.460 1.100 2.210 (2.250) (2.030) (0.760)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period............... $17.470 $16.010 $14.910 $12.700 $14.950 $16.980
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 9.12% 14.51% 27.17% (4.59)% 11.65% 6.80%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets............... 0.60%+ 0.59% 0.60% 0.60% 0.71% 0.91%
Net investment income (loss) to
average net assets......................... 0.24%+ 0.29% 0.32% 0.10% 0.09% (0.14)%
Portfolio turnover........................... 44.35% 88.78% 122.20% 67.39% 65.30% 54.95%
Average commission rate paid................. $0.0553 $0.0557
Net Assets, End of Period (000s omitted)..... $17,391 $14,313 $9,294 $5,942 $5,886 $5,497
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share.... $0.012 $0.035 $(0.036) $(0.003)
Ratios:
Expenses to average net assets............ 0.65%+ 0.71% 0.96% 0.83%
Net investment income (loss) to
average net assets...................... 0.19%+ 0.21% (0.26)% (0.03)%
<CAPTION>
Cash Management Portfolio
-------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/97 -----------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 1993 1992
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------- ------- ------- ------- ------- -------
Net investment income.......................... 0.027 0.053 0.055 0.040 0.030 0.035
Dividends paid................................. (0.027) (0.053) (0.055) (0.040) (0.030) (0.035)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 2.70% 5.43% 5.60% 4.03% 3.00% 3.53%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets................. -- -- -- -- -- --
Net investment income to average net assets.... 5.40%+ 5.30% 5.48% 3.98% 2.96% 3.50%
Net Assets, End of Period (000s omitted)....... $9,478 $9,755 $7,800 $3,230 $3,102 $4,230
Without management fee waiver and
expense reimbursement:++
Net investment income per share............. $0.023 $0.047 $0.046 $0.025 $ 0.019 $0.025
Ratios:
Expenses to average net assets.............. 0.82%+ 0.63% 0.87% 1.48% 1.07% 0.97%
Net investment income to average net assets. 4.58%+ 4.67% 4.61% 2.50% 1.89% 2.53%
<FN>
- ------------------------
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-50 --
<PAGE>
- -------------------------------------------------------------------------------
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stock Portfolio
--------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/97 ------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 1993 1992
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $15.920 $15.440 $13.780 $14.980 $15.600 $14.740
--------- -------- -------- -------- -------- --------
Net investment income............................. 0.166 0.334 0.349 0.365 0.392 0.346
Net realized and unrealized gain (loss)
on investments.................................. 2.064 2.789 3.400 (0.356) 1.479 1.445
--------- -------- -------- -------- -------- --------
Increase from Investment Operations............... 2.230 3.123 3.749 0.009 1.871 1.791
Dividends paid.................................... -- (0.336) (0.345) (0.385) (0.394) (0.369)
Distributions from net realized gain ............. -- (2.307) (1.744) (0.824) (2.097) (0.562)
--------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net Asset Value........ 2.230 0.480 1.660 (1.200) (0.620) 0.860
--------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.................... $18.150 $15.920 $15.440 $13.780 $14.980 $15.600
--------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- --------
TOTAL RETURN BASED ON NET ASSET VALUE: 14.01% 20.08% 27.28% 0.04% 11.94% 12.14%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.54%+ 0.53% 0.54% 0.60% 0.55% 0.56%
Net investment income to average net assets....... 1.99%+ 1.99% 2.42% 2.45% 2.10% 2.21%
Portfolio turnover................................ 19.19% 50.33% 55.48% 15.29% 10.70% 12.57%
Average commission rate paid...................... $0.0592 $0.0561
Net Assets, End of Period (000s omitted).......... $45,426 $37,168 $28,836 $20,168 $21,861 $24,987
Without management fee waiver and
expense reimbursement:++
Net investment income per share................. $0.361
Ratios:
Expenses to average net assets.................. 0.62%
Net investment income to
average net assets............................ 2.43%
<CAPTION>
Communications and Information Portfolio
-------------------------------------------------------------------
Six Months
Ended Year Ended December 31, 10/11/94**
6/30/97 ------------------------- to
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 12/31/94
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $14.690 $13.500 $10.440 $10.000
-------- -------- -------- --------
Net investment loss............................... (0.031) -- -- (0.016)
Net realized and unrealized gain
on investments.................................. 1.171 1.190 4.015 0.456
-------- -------- -------- --------
Increase from Investment Operations............... 1.140 1.190 4.015 0.440
Dividends paid.................................... -- -- -- --
Distributions from net realized gain ............. -- -- (0.955) --
-------- -------- -------- --------
Net Increase in Net Asset Value 1.140 1.190 3.060 0.440
-------- -------- -------- --------
Net Asset Value, End of Period.................... $15.830 $14.690 $13.500 $10.440
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN BASED ON NET ASSET VALUE: 7.76% 8.81% 38.55% 4.40%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.84%+ 0.87% 0.95% 0.95%+
Net investment income (loss) to average net assets (0.43)%+ (0.32)% (0.89)% (0.95)%+
Portfolio turnover................................ 144.36% 167.20% 96.62% --
Average commission rate paid...................... $0.0543 $0.0530
Net Assets, End of Period (000s omitted).......... $73,828 $60,645 $38,442 $495
Without management fee waiver and
expense reimbursement:++
Net investment loss per share................... $(0.436)
Ratios:
Expenses to average net assets.................. 13.96%+
Net investment loss to
average net assets............................ (13.96)%+
<FN>
- ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of operations.
** Commencement of investment operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-51 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Financial Highlights (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Growth
Frontier Portfolio Opportunities Portfolio
---------------------------------------------- -----------------------
Six Months Six Months
Ended Year Ended December 31, 10/11/94** Ended 5/1/96*
6/30/97 --------------------- to 6/30/97 to
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 12/31/94 (unaudited) 12/31/96
----------- -------- ------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $14.980 $13.560 $10.580 $10.000 $ 9.910 $10.000
------- ------- ------- ------- ------- -------
Net investment income (loss)........... (0.033) 0.001 (0.001) (0.012) 0.028 0.008
Net realized and unrealized gain
on investments....................... 1.513 3.220 3.512 0.592 1.527 0.018
Net realized and unrealized loss
from foreign currency transactions... -- -- -- -- (0.205) (0.104)
------- ------- ------- ------- ------- -------
Increase (Decrease) from
Investment Operations................ 1.480 3.221 3.511 0.580 1.350 (0.078)
Dividends paid......................... -- -- -- -- -- (0.012)
Distributions from net realized gain .. -- (1.801) (0.531) -- -- --
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Net
Asset Value.......................... 1.480 1.420 2.980 0.580 1.350 (0.090)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period......... $16.460 $14.980 $13.560 $10.580 $11.260 $ 9.910
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
TOTAL RETURN BASED ON
NET ASSET VALUE: 9.88% 23.93% 33.28% 5.80% 13.62% (0.78)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets......... 0.88%+ 0.92% 0.95% 0.95%+ 1.40%+ 1.40%+
Net investment income (loss) to
average net assets................... (0.44)%+ (0.37)% (0.55)% (0.70)%+ 0.56%+ 0.37%+
Portfolio turnover..................... 51.42% 119.74% 106.48% -- 31.09% 12.99%
Average commission rate paid........... $0.0531 $0.0532 $0.0281 $0.0522
Net Assets, End of Period (000s omitted) $38,611 $31,672 $12,476 $169 $4,159 $1,590
Without management fee waiver and
expense reimbursement:++
Net investment loss per share........ $(0.019) $(1.319) $(0.033) $(0.255)
Ratios:
Expenses to average net assets....... 1.37% 40.47%+ 2.60%+ 6.04%+
Net investment loss to average
net assets......................... (0.97)% (40.22)%+ (0.64)%+ (4.27)%+
<FN>
- ----------------------
* Commencement of operations.
** Commencement of investment operations.
+ Annualized.
++ The Manager and/or Subadviser, at their discretion, reimbursed expenses
and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-52 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Smaller Global Technology
Companies Portfolio Portfolio
----------------------------------------------- -----------------------
Six Months Six Months
Ended Year Ended December 31, 10/11/94** Ended 5/1/96*
6/30/97 --------------------- to 6/30/97 to
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 12/31/94 (unaudited) 12/31/96
----------- -------- ------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period. $12.870 $11.670 $10.310 $10.000 $10.320 $10.000
------- ------- ------- ------- ------- -------
Net investment income (loss)......... 0.017 0.022 0.051 0.058 (0.014) (0.004)
Net realized and unrealized gain
on investments..................... 2.229 2.305 2.037 0.266 0.892 0.305
Net realized and unrealized gain (loss)
from foreign currency transactions. (1.006) (0.158) (0.301) 0.029 0.042 0.099
------- ------- ------- ------- ------- -------
Increase from Investment Operations.. 1.240 2.169 1.787 0.353 0.920 0.400
Dividends paid....................... -- (0.018) (0.052) (0.043) -- --
Distributions from net realized gain -- (0.951) (0.375) -- -- (0.080)
------- ------- ------- ------- ------- -------
Net Increase in Net Asset Value...... 1.240 1.200 1.360 0.310 0.920 0.320
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period....... $14.110 $12.870 $11.670 $10.310 $11.240 $10.320
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
TOTAL RETURN BASED ON
NET ASSET VALUE: 9.63% 18.66% 17.38% 3.53% 8.91% 4.01%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets....... 1.40%+ 1.40% 1.39% 1.20%+ 1.40%+ 1.40%+
Net investment income (loss) to
average net assets................. 0.34%+ 0.23% 0.64% 3.14%+ (0.28)%+ 0.60%+
Portfolio turnover................... 30.56% 62.31% 55.65% -- 90.18% 45.04%
Average commission rate paid......... $0.0191 $0.0219 $0.0173 $0.0160
Net Assets, End of Period (000s omitted) $21,960 $16,876 $4,837 $132 $2,547 $1,364
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share $0.006 $(0.044) $(0.051) $(1.225) $(0.067) $(0.202)
Ratios:
Expenses to average net assets..... 1.58%+ 1.90% 3.84% 37.25%+ 2.41%+ 4.71%+
Net investment income (loss) to
average net assets............... 0.16%+ (0.27)% (1.81)% (32.91)%+ (1.29)%+ (2.71)%+
<FN>
- ----------------------
* Commencement of operations.
** Commencement of investment operations.
+ Annualized.
++ The Manager and/or Subadviser, at their discretion, reimbursed expenses
and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-53 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Financial Highlights (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International High-Yield Bond
Portfolio Portfolio
------------------------------------------------- --------------------------------
Six Months Six Months
Ended Year Ended December 31, 5/3/93* Ended Year 5/1/95*
6/30/97 -------------------------- to 6/30/97 Ended to
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 12/31/93 (unaudited) 12/31/96 12/31/95
---------- ------- ------- ------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $12.960 $12.390 $11.340 $11.370 $10.000 $11.190 $10.500 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Net investment income................... 0.061 0.074 0.154 0.131 0.021 0.545 0.768 0.218
Net realized and unrealized gain
on investments........................ 2.432 1.124 0.896 (0.306) 1.518 0.105 0.766 0.519
Net realized and unrealized gain (loss)
from foreign currency transactions.... (0.633) (0.323) 0.236 0.325 (0.099) -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Increase from Investment Operations..... 1.860 0.875 1.286 0.150 1.440 0.650 1.534 0.737
Dividends paid.......................... -- (0.068) (0.151) (0.064) (0.053) -- (0.766) (0.219)
Distributions from net realized gain ... -- (0.237) (0.085) (0.116) (0.017) -- (0.078) (0.018)
------- ------- ------- ------- ------- ------- ------- -------
Net Increase in Net Asset Value......... 1.860 0.570 1.050 (0.030) 1.370 0.650 0.690 0.500
------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of Period.......... $14.820 $12.960 $12.390 $11.340 $11.370 $11.840 $11.190 $10.500
------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- -------
TOTAL RETURN BASED ON
NET ASSET VALUE: 14.35% 7.08% 11.34% 1.32% 14.40% 5.81% 14.62% 7.37%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......... 1.40%+ 1.40% 1.35% 1.20% 1.20%+ 0.70%+ 0.70% 0.70%+
Net investment income to
average net assets.................... 1.18%+ 0.70% 1.01% 1.17% 1.30%+ 9.66%+ 9.77% 7.46%+
Portfolio turnover...................... 36.85% 48.53% 41.40% 47.34% 2.82% 40.31% 117.01% 67.55%
Average commission rate paid............ $0.0217 $0.0191
Net Assets, End of Period (000s omitted) $10,111 $7,242 $4,183 $1,776 $648 $16,510 $11,176 $3,009
Without management fee waiver and
expense reimbursement:++
Net investment income (loss) per share $(0.006) $(0.042) $0.001 $(0.419) $(1.004) $0.536 $0.747 $0.117
Ratios:
Expenses to average net assets........ 2.23%+ 2.30% 3.40% 6.12% 17.94%+ 0.86%+ 0.88% 4.38%+
Net investment income (loss) to
average net assets.................. 0.35%+ (0.20)% (1.04)% (3.75)% (15.44)%+ 9.50%+ 9.59% 3.78%+
<FN>
- ----------------------
* Commencement of operations.
+ Annualized.
++ The Manager and/or Subadviser, at their discretion, reimbursed expenses
and/or waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-54 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income Portfolio
-------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/97 -----------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1996 1995 1994 1993 1992
----------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $10.520 $10.560 $ 9.970 $11.380 $11.390 $11.250
------- ------- ------- ------- ------- -------
Net investment income ............................ 0.275 0.579 0.604 0.689 0.828 0.862
Net realized and unrealized gain (loss)
on investments.................................. 0.475 0.126 1.187 (1.369) 0.576 0.896
------- ------- ------- ------- ------- -------
Increase (Decrease) from Investment Operations.... 0.750 0.705 1.791 (0.680) 1.404 1.758
Dividends paid.................................... -- (0.579) (0.604) (0.730) (0.828) (0.987)
Distributions from net realized gain ............. -- (0.166) (0.597) -- (0.586) (0.631)
------- ------- ------- ------- ------- -------
Net Increase (Decrease) in Net Asset Value........ 0.750 (0.040) 0.590 (1.410) (0.010) 0.140
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period.................... $11.270 $10.520 $10.560 $ 9.970 $11.380 $11.390
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
TOTAL RETURN BASED ON NET ASSET VALUE: 7.13% 6.66% 17.98% (5.96)% 12.37% 15.72%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.60%+ 0.59% 0.60% 0.60% 0.64% 0.68%
Net investment income to average
net assets...................................... 5.18%+ 5.37% 5.55% 6.34% 6.40% 7.53%
Portfolio turnover................................ 39.78% 19.59% 51.22% 29.76% 38.38% 39.46%
Average commission rate paid...................... $0.0600 $0.0600
Net Assets, End of Period (000s omitted).......... $13,609 $13,717 $12,619 $10,050 $11,220 $11,363
Without management fee waiver and
expense reimbursement:++
Net investment income per share................. $0.602 $0.670 $0.826
Ratios:
Expenses to average net assets.................. 0.62% 0.77% 0.65%
Net investment income to average
net assets.................................... 5.53% 6.17% 6.39%
<FN>
- ----------------------
* Commencement of operations
** Commencement of investment operations.
+ Annualized.
++ The Manager, at its discretion, waived management fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
-- P-55 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Board of Directors
- ------------------------------------------------------------------------------
Fred E. Brown
Director Emeritus
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin2
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, USLIFE Corporation
Alice S. Ilchman3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
Frank A. McPherson2
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Aluminum Corporation
Betsy S. Michel2
Director or Trustee,
Various Organizations
William C. Morris1
Chairman
Chairman of the Board,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
James C. Pitney3
Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
James Q. Riordan3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Richard R. Schmaltz1
Managing Director,
J. & W. Seligman & Co. Incorporated
Trustee Emeritus, Colby College
Robert L. Shafer3
Director or Trustee,
Various Organizations
James N. Whitson2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino1
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
- ----------------------------------
Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
-- P-56 --
<PAGE>
Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------
Executive Officers
- ------------------------------------------------------------------------------
William C. Morris
Chairman
Brian T. Zino
President
Brian Ashford-Russell
Vice President
Daniel J. Charleston
Vice President
Iain C. Clark
Vice President
Leonard J. Lovito
Vice President
Nitin Mehta
Vice President
Arsen Mrakovcic
Vice President
Loris D. Muzzatti
Vice President
Charles C. Smith, Jr.
Vice President
Lawrence P. Vogel
Vice President
Paul H. Wick
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- --------------------------------------------------------------------------
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, New York 10017
Subadviser
Seligman Henderson Co.
100 Park Avenue
New York, New York 10017
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, New York 10017
Custodians
Investors Fiduciary Trust Company
Morgan Stanley Trust Company
General Counsel
Sullivan & Cromwell
Independent Auditors
Ernst & Young LLP
-- P-57 --
