<PAGE>
- ------------------------------------------------------------------------------
MID-YEAR REPORT
- ------------------------------------------------------------------------------
SELIGMAN
PORTFOLIOS,
INC.
J&WS
June 30, 1998
<PAGE>
SELIGMAN
PORTFOLIOS,
INC.
July 31, 1998
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, 1998.
The US economy continued to grow throughout the first half of the year,
bringing the expansion into an unprecedented eighth year. Inflation remained
low, wages rose, consumer spending was strong, and the labor market remained
tight. Further, the supply of consumer goods kept pace with demand, which helped
the economic expansion remain balanced.
Within the US equity market, the dominant investment trend in the first half
of 1998 continued to be a "flight to quality." Investors stressed the importance
of quality, liquidity, and safety. Consequently, the market remained "narrow,"
with demand for large-capitalization growth stocks far outpacing demand for
their value counterparts, as well as small-capitalization and mid-capitalization
stocks. The market effectively became two-tiered, as the 30 largest companies in
the S&P 500 accounted for more than half of its gains. Within the fixed-income
markets, the Asian financial crisis began to favorably impact the bond market,
as both foreign and domestic investors sought the safety and quality of US
Treasury securities. This sent yields down and prices up. Further, the potential
for slower economic growth, coupled with the Asian crisis, caused the Federal
Reserve Board to leave short-term interest rates unchanged in the first half of
the year. The 30-year US Treasury bond yield finished the period at 5.63% on
June 30, down from 5.92% on December 31, 1997.
Looking ahead, while the Asian financial crisis only modestly affected the US
economy in the first half of 1998, we believe its full impact is yet to come.
This leads us to believe that the current benign business environment could
become less stable. Some early warning economic indicators started flashing
cautionary signals toward the end of the second quarter as the economy began to
decelerate. US corporate profits were being pressured. The basic fundamental
case remains positive, yet investor expectations, at least for the short term,
seem to be on the high side.
Internationally, the most important factor influencing the markets has been
the Asian financial crisis. Thus far, events in the region have not impacted the
global economy to the degree that was originally anticipated. Growth continues
to be strong in Europe and in select emerging markets. Some industrialized
nations have even derived unexpected benefits from the crisis in the form of
less expensive imported goods. However, the Asian crisis is not over and, more
important, Japan has experienced no economic growth this year -- though there is
hope that the announced government stimulus package will be effective.
Nonetheless, we believe the steps being taken by the governments should, in the
long run, restore their countries' financial health, and the economies and stock
markets should return to growth in the longer term.
Thank you for your continued confidence in Seligman Portfolios, Inc. We 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.
- ------------------------------------------------------------------------------
PORTFOLIO OVERVIEW (unaudited)
- ------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN BOND PORTFOLIO
US GOVERNMENT SECURITIES
US Treasury Notes
6-5/8%, 2/15/2007................ $ 300,000 $ 300,000
US GOVERNMENT AGENCY SECURITIES
Government National Mortgage
Association 6-1/2%, 4/15/2028.... 1,008,064 1,008,064
CORPORATE BONDS
AT&T Capital 6-1/4%, 5/15/2001..... 200,000 200,000
Chrysler Financial 6.09%, 4/6/2001. 200,000 200,000
Dell Computer 6.55%, 4/15/2008..... 200,000 200,000
Equifax 6.30%, 7/1/2005............ 200,000 200,000
Philip Morris 7-1/8%, 8/15/2002.... 200,000 200,000
Viacom 7-3/4%, 6/1/2005............ 200,000 200,000
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
US GOVERNMENT SECURITIES
US Treasury Bonds
6-5/8%, 2/15/2027................ $500,000 $900,000
US GOVERNMENT AGENCY SECURITIES
Federal National Mortgage
Association 7-1/2%, 11/1/2026.... 463,195 --
Government National Mortgage
Association 7-1/2%, 6/15/2023.... 215,496 --
Government National Mortgage
Association 7-1/2%, 3/15/2026.... 269,170 --
CORPORATE BONDS
Anixter 8%, 9/15/2003.............. 200,000 --
First Data 6-3/8%, 12/15/2007...... 200,000 --
Geon 6-7/8%, 12/15/2005............ 200,000 --
The Money Store 8.05%, 4/15/2002... 200,000 --
Oryx Energy 8-1/8%, 10/15/2005..... 200,000 --
Owens-Illinois 7.85%, 5/15/2004.... 200,000 --
- ------------------------------------------------------------------------------
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN CAPITAL PORTFOLIO
COMMON STOCKS
AutoZone.......................... 17,500 shs. 17,500 shs.
Budget Group (Class A)............ 15,200 15,200
Diebold........................... 8,800 8,800
Laidlaw........................... 28,200 28,200
Liz Claiborne..................... 9,200 9,200
Microchip Technology.............. 12,200 12,200
Network Associates................ 5,600 8,400 (1)
Omnicare.......................... 9,900 9,900
Proffitt's........................ 11,000 11,000
TJX Companies..................... 8,900 17,800 (2)
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Coca-Cola Enterprises............. 17,600 shs. --
GreenPoint Financial.............. 6,400 --
Gulfstream Aerospace.............. 10,600 --
Humana............................ 15,500 --
MBNA.............................. 15,000 --
McKesson.......................... 5,000 (3) --
Pfizer............................ 3,800 --
Travelers......................... 11,700 --
US Surgical....................... 10,600 --
Washington Mutual................. 6,400 --
- ------------------------------------------------------------------------------
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN COMMON STOCK PORTFOLIO
COMMON STOCKS
Baxter International.............. 9,900 9,900
British Petroleum (ADRs).......... 6,600 6,600
Chevron........................... 7,300 7,300
Edison International.............. 22,900 22,900
Exxon............................. 9,500 25,600
GTE............................... 16,200 16,200
Kimberly-Clark.................... 11,700 11,700
Marsh & McLennan.................. 7,900 11,850 (4)
May Department Stores............. 12,100 12,100
US WEST Communications Group...... 13,900 13,900
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
AMP............................... 13,400 --
Applied Materials................. 18,700 --
Arrow Electronics................. 16,600 --
Bell Atlantic..................... 6,500 --
Compaq Computer................... 22,500 (5) --
First Union....................... 10,600 --
Illinois Tool Works............... 10,500 --
RJR Nabisco Holdings.............. 27,500 7,300 shs.
Sherwin-Williams.................. 17,700 --
TIG Holdings...................... 22,400 --
- -------------
See footnotes on page P-8.
P-1
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIO OVERVIEW (unaudited) (continued)
- ------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN COMMUNICATIONS
AND INFORMATION PORTFOLIO
COMMON STOCKS
Ascend Communications............. 23,300 23,300
Autodesk.......................... 36,700 36,700
Creative Technology............... 55,100 136,800
Electronic Arts................... 33,500 45,500
International Business
Machines........................ 9,100 9,100
SCI Systems....................... 28,600 28,600
Sinclair Broadcast Group
(Class A)....................... 22,100 44,200 (6)
SMART Modular Technologies........ 42,300 42,300
Xerox............................. 9,600 9,600
Ziff-Davis........................ 57,600 57,600
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Adaptec........................... 35,600 --
Applied Materials................. 38,400 --
Cisco Systems..................... 17,450 17,500
Computer Sciences................. 19,200 --
Gateway 2000...................... 22,000 --
Lexmark International Group
(Class A)....................... 27,100 35,200
Parametric Technology............. 27,200 38,900 (7)
Read-Rite......................... 74,100 --
Tellabs........................... 17,300 --
VLSI Technology................... 50,000 --
- ------------------------------------------------------------------------------
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN FRONTIER PORTFOLIO
COMMON STOCKS
CalEnergy......................... 11,300 28,660
ESG Re............................ 12,700 12,700
Metamor Worldwide................. 10,000 10,000
Microchip Technology.............. 18,800 18,800
Personnel Group of America........ 19,600 42,400 (8)
Provant........................... 16,700 16,700
Province Healthcare............... 24,300 24,300
Sinclair Broadcast Group
(Class A)....................... 6,300 12,600 (9)
UCAR International................ 18,900 28,400
Universal Health Services
(Class B)....................... 10,000 10,000
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
AmeriSource Health (Class A)...... 9,730 --
Anchor Gaming..................... 7,800 --
CCA Prison Realty Trust........... 12,800 --
Chancellor Media (Class A)........ 8,954 --
DONCASTERS (ADRs)................. 22,800 --
GTECH Holdings.................... 12,300 --
Gulf South Medical Supply......... 12,400 --
National Surgery Centers.......... 19,575 --
Scherer (R.P.).................... 12,600 --
Synopsys.......................... 11,300 --
- -------------
See footnotes on page P-8.
P-2
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL
GROWTH OPPORTUNITIES PORTFOLIO
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
COMMON STOCKS
Centros Comerciales Continente.... 4,000 4,000
ConAgra........................... 3,600 3,600
ECIA.............................. 251 251
Hachette Filipacchi Medias........ 400 400
Hellenic Telecommunication
Organization.................... 3,750 4,166 (10)
Kroger............................ 1,500 1,500
Lilly (Eli)....................... 1,300 1,300
Philip Morris..................... 2,300 2,300
PolyGram.......................... 1,390 1,390
Superdiplo........................ 3,600 3,600
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Autoliv (ADRs).................... 2,100 --
Compaq Computer................... 2,200 (11) --
Desc (ADRs)....................... 2,650 --
Elsevier.......................... 4,500 --
Heineken.......................... 395 --
Intel............................. 800 --
Kalmar Industries................. 2,300 --
MBNA.............................. 1,200 2,275
MOL Magyar Olaj-es
Gazipari (GDRs)................. 3,460 1,740
Pfizer............................ 500 1,300
- ------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
----------------------
JUNE 30, DECEMBER 31,
ISSUES COST VALUE 1998 1997
------ ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
Aerospace............................................ 1 $ 50,559 $ 52,050 0.6 1.0
Automotive and Related............................... 5 195,134 221,584 2.7 2.9
Business Goods and Services.......................... 7 506,410 598,666 7.4 6.8
Computer and Technology Related...................... 8 390,419 627,340 7.7 9.6
Construction and Property............................ 2 93,620 130,101 1.6 1.7
Consumer Goods and Services.......................... 11 695,899 853,973 9.6 8.9
Diversified.......................................... 1 92,572 118,300 1.5 3.3
Drugs and Health Care................................ 10 794,934 937,343 11.6 11.0
Electric and Gas Utilities........................... 3 79,684 49,470 0.6 0.6
Electronics.......................................... 5 226,383 240,233 3.7 3.3
Entertainment and Leisure............................ 8 530,627 616,883 7.1 6.2
Financial Services................................... 9 517,068 637,199 7.9 9.0
Industrial Goods and Services........................ 2 137,645 167,823 1.3 2.8
Manufacturing and Industrial Equipment............... 1 20,281 6,356 0.1 0.9
Publishing........................................... 1 95,758 115,494 1.4 1.3
Resources............................................ 3 134,082 103,843 1.3 4.3
Restaurants.......................................... 1 100,508 114,317 1.4 0.9
Retailing............................................ 5 315,104 400,639 6.4 2.9
Support Services..................................... 2 102,202 102,703 1.3 1.9
Telecommunications................................... 9 562,128 722,425 8.9 8.1
Tobacco.............................................. 2 165,194 203,086 2.5 1.9
Transportation....................................... 3 232,663 315,994 3.9 4.5
--- ---------- ---------- ----- -----
99 6,038,874 7,335,822 90.5 93.8
Other Assets Less Liabilities........................ 3 663,643 768,227 9.5 6.2
--- ---------- ---------- ----- -----
NET ASSETS........................................... 102 $6,702,517 $8,104,049 100.0 100.0
=== ========== ========== ===== =====
<FN>
- -------------
See footnotes on page P-8.
</FN>
</TABLE>
P-3
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIO OVERVIEW (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL
SMALLER COMPANIES PORTFOLIO
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
COMMON STOCKS
Barnes & Noble.................... 3,200 3,200
EduTrek International (Class A)... 3,900 4,000
Etam Developpement................ 1,659 1,659
Genset (ADRs)..................... 2,840 2,840
Horizon Medical Products.......... 10,000 10,000
ICON (ADRs)....................... 5,000 5,000
Microchip Technology.............. 4,000 4,000
Pre-Paid Legal Services........... 3,200 3,200
Province Healthcare............... 4,600 4,600
UCAR International................ 5,800 5,800
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Berg Electronics.................. 11,000 --
FactSet Research Systems.......... 4,700 1,200
GTECH Holdings.................... 3,700 --
Kendle International.............. 5,000 --
NCS HealthCare (Class A).......... 4,800 1,300
Otra.............................. 9,140 --
Rauma............................. 8,231 --
Source Services................... 5,700 --
Universal Outdoor Holdings........ 6,000 --
Zag Industries.................... 14,200 --
- ------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
----------------------
JUNE 30, DECEMBER 31,
ISSUES COST VALUE 1998 1997
------ ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
Advertising.......................................... 2 $ 124,676 $ 110,160 0.5 2.0
Automotive Parts Manufacturing....................... 5 407,955 700,434 3.0 2.7
Building Materials................................... 2 318,799 222,252 0.9 1.4
Business Services.................................... 22 1,694,286 2,197,929 9.4 10.1
Capital Goods........................................ 9 502,989 451,804 1.9 2.3
Chemicals............................................ 6 229,563 240,646 1.0 1.2
Computer Software.................................... 12 718,897 1,723,076 7.3 5.1
Construction and Property............................ 10 1,112,671 1,426,561 6.1 6.3
Consumer Goods and Services.......................... 26 1,570,453 1,910,938 8.2 6.8
Distributors......................................... 2 23,674 20,830 0.1 0.1
Drugs and Health Care................................ 22 1,241,807 1,398,686 6.0 6.5
Electric Utilities................................... 3 377,201 391,728 1.7 0.2
Electrical Distribution.............................. 2 108,371 156,438 0.7 0.6
Electronics.......................................... 12 575,768 436,721 1.9 5.8
Energy............................................... 1 32,128 19,013 0.1 0.9
Financial Services................................... 17 830,555 973,790 4.2 4.6
Independent Power Producers.......................... -- -- -- -- 1.2
Industrial Goods and Services........................ 8 522,442 633,909 2.7 3.1
Leisure and Hotels................................... 4 186,448 124,999 0.5 1.5
Manufacturing........................................ 25 1,407,715 1,688,008 7.2 7.6
Media................................................ 15 1,132,620 1,399,023 6.0 5.3
Medical Products and Technology...................... 11 698,233 613,999 2.6 1.9
Metals............................................... 3 186,569 139,332 0.6 0.9
Paper and Printing................................... 2 119,489 100,256 0.4 0.5
Resources............................................ 3 84,424 72,778 0.3 --
Restaurants.......................................... 4 187,523 331,654 1.4 1.4
Retailing............................................ 18 1,252,234 1,391,459 5.9 4.1
Support Services..................................... 3 288,795 303,636 1.3 1.6
Technology........................................... 20 1,270,036 1,148,899 4.9 3.7
Telecommunications................................... 10 569,814 662,930 2.8 1.6
Transportation....................................... 6 408,662 500,929 2.1 2.6
<FN>
- --------------
See footnotes on page P-8.
</FN>
</TABLE>
P-4
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL
SMALLER COMPANIES PORTFOLIO (continued)
DIVERSIFICATION OF NET ASSETS* (continued)
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
----------------------
JUNE 30, DECEMBER 31,
ISSUES COST VALUE 1998 1997
------ ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS (continued)
Veterinary Products............................... 1 $ 140,050 $ 108,156 0.5 0.5
Miscellaneous..................................... 1 26,500 31,820 0.1 0.2
--- ----------- ----------- ----- -----
287 18,351,347 21,632,793 92.3 94.3
Other Assets Less Liabilities..................... 5 1,846,771 1,808,864 7.7 5.7
--- ----------- ----------- ----- -----
NET ASSETS........................................ 292 $20,198,118 $23,441,657 100.0 100.0
=== =========== =========== ===== =====
</TABLE>
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL
TECHNOLOGY PORTFOLIO
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
COMMON STOCKS
Cable & Wireless............... 6,000 6,000
Creative Technology............ 3,000 5,500
Electronic Arts................ 1,800 1,800
General Electric............... 8,700 8,700
Genset (ADRs).................. 1,500 1,500
HNC Software................... 1,400 1,400
Mannesmann..................... 900 9,000 (12)
NEC............................ 5,000 5,000
Novartis....................... 50 50
Telecomunicacoes Brasileiras
"Telebras" (ADRs)........... 500 500
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Admiral........................ 1,680 5,320
AMF Bowling.................... 9,000 --
Cisco Systems.................. 750 --
LHS Group...................... 1,000 --
Misys.......................... 500 1,100
MMC Networks................... 6,000 --
Philips Electronics............ 1,150 --
Read-Rite...................... 1,900 --
Dr. Solomon's Group (ADRs)..... 1,650 --
VERO Group..................... 12,500 --
DIVERSIFICATION OF NET ASSETS*
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
----------------------
JUNE 30, DECEMBER 31,
ISSUES COST VALUE 1998 1997
------ ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
Computer and Business Services..................... 9 $ 364,049 $ 587,230 11.0 13.7
Computer Hardware/Peripherals...................... 9 475,926 579,335 10.8 10.3
Computer Software.................................. 19 902,887 1,175,785 22.0 15.0
Distributors....................................... 2 61,114 30,980 0.6 1.3
Electronics........................................ 9 398,020 336,912 6.3 9.5
Electronics Capital Equipment...................... 11 659,237 521,605 9.8 8.9
Media.............................................. 2 115,616 108,826 2.0 1.6
Medical Products and Technology.................... 7 360,499 360,149 6.8 4.2
Networking/Communications Infrastructure........... 6 274,936 344,088 6.4 6.7
Semiconductors..................................... 5 265,516 214,062 4.0 5.3
Telecommunications................................. 8 351,539 474,099 8.9 3.8
Miscellaneous...................................... 1 46,045 44,807 0.8 6.1
--- ---------- ---------- ----- -----
88 4,275,384 4,777,878 89.4 86.4
Other Assets Less Liabilities...................... 2 567,421 567,421 10.6 13.6
--- ---------- ---------- ----- -----
NET ASSETS......................................... 90 $4,842,805 $5,345,299 100.0 100.0
=== ========== ========== ===== =====
<FN>
- --------------
See footnotes on page P-8.
</FN>
</TABLE>
P-5
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIO OVERVIEW (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON
INTERNATIONAL PORTFOLIO
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
COMMON STOCKS
Alcatel........................... 836 836
Alstom............................ 3,005 3,005
Bayerische Motoren Werke "BMW".... 119 119
Deutsche Bank..................... 1,721 1,721
Lloyd TSB......................... 7,500 7,500
Mitsui............................ 50,000 50,000
Nestle............................ 69 69
Samsung Electronics............... 1,950 1,950
Schneider......................... 1,408 1,408
Vendex International.............. 1,562 1,562
SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
COMMON STOCKS
Banque Nationale de Paris......... 2,209 --
Credit Communal Holding/Dexia..... 990 --
Desc (ADRs)....................... 5,423 --
Endesa............................ 6,415 615
Magyar Tavkozlesi "Matav" (ADRs).. 2,740 4,100
Novo Nordisk (Class B)............ 546 --
Roche Holdings.................... 13 --
SKW Trostberg..................... 2,556 --
Thyssen........................... 525 --
Usinor Sacilor.................... 5,884 --
DIVERSIFICATION OF NET ASSETS*
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
----------------------
JUNE 30, DECEMBER 31,
ISSUES COST VALUE 1998 1997
------ ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
Banking.............................................. 14 $1,189,460 $ 1,570,169 14.6 9.6
Building Materials................................... 1 60,524 50,242 0.5 0.5
Business Services.................................... 4 96,068 68,090 0.6 0.7
Chemicals............................................ 5 323,262 419,861 3.9 4.6
Construction and Property............................ 3 267,470 317,753 3.0 2.7
Consumer Products.................................... 5 373,220 478,593 4.5 0.8
Distributors......................................... 1 259,996 269,484 2.5 --
Electronics.......................................... 5 427,319 403,842 3.8 2.1
Financial Services................................... 6 204,422 165,318 1.5 2.5
Health and Household................................. 4 327,427 313,649 2.9 7.1
Industrial Goods and Services........................ 8 488,832 689,551 6.4 6.3
Insurance............................................ 4 421,929 736,881 6.9 5.6
Leisure and Hotels................................... 2 228,440 378,652 3.5 3.2
Manufacturing........................................ 6 399,471 405,847 3.8 4.6
Media................................................ 3 112,923 176,300 1.6 4.0
Metals............................................... 1 5,199 4,754 0.1 2.3
Resources............................................ 7 635,967 674,676 6.3 9.5
Restaurants.......................................... 1 25,850 24,793 0.2 0.2
Retailing............................................ 10 646,147 797,940 7.4 5.2
Telecommunications................................... 12 833,182 1,140,907 10.6 11.3
Tobacco.............................................. 2 165,732 196,641 1.8 2.0
Transportation....................................... 5 309,842 463,545 4.3 3.6
Utilities............................................ 6 423,528 464,420 4.4 5.7
Miscellaneous........................................ 4 77,116 68,269 0.6 0.2
--- ---------- ----------- ----- -----
119 8,303,326 10,280,177 95.7 94.3
Other Assets Less Liabilities........................ 1 466,089 466,089 4.3 5.7
--- ---------- ----------- ----- -----
NET ASSETS........................................... 120 $8,769,415 $10,746,266 100.0 100.0
=== ========== =========== ===== =====
<FN>
- --------------
See footnotes on page P-8.
</FN>
</TABLE>
P-6
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED JUNE 30, 1998
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
CORPORATE BONDS
Advanstar Communications
9-1/4%, 5/1/2008............. $225,000 $225,000
Facilicom International
10-1/2%, 1/15/2008........... 325,000 325,000
Global Health Sciences 11%,
5/1/2008..................... 275,000 275,000
Great Lakes Carbon 10-1/4%,
5/15/2008.................... 200,000 200,000
Packaged Ice 9-3/4%, 2/1/2005... 200,000 200,000
Pinnacle Holdings 0% (10%),
3/15/2008.................... 550,000 550,000
PSINet 10%, 2/15/2005.......... 250,000 250,000
PREFERRED STOCKS
Liberty Group Publishing 14-3/4% 8,868 shs. 8,868 shs.
Nebco Evans Holdings 11-1/4% ... 2,566 2,566
Nextel Communications 11-1/8%... 255 255
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
CORPORATE BONDS
Gorges/Quik-to-Fix Foods
11-1/2%, 12/1/2006.............. $150,000 $100,000
IXC Communications 12-1/2%,
10/1/2005....................... 325,000 --
Mobile Telecommunication
Technologies
13-1/2%, 12/15/2002............. 150,000 225,000
Petersen Publishing
11-1/8%, 11/15/2006............. 110,000 --
Plitt Theaters 10-7/8%, 6/15/2004.. 125,000 --
PriCellular Wireless 10-3/4%,
11/1/2004....................... 225,000 --
Showboat 13%, 8/1/2009............. 125,000 --
SUBORDINATED CONVERTIBLE BONDS.....
EMC 3-1/4%, 3/15/2002.............. 75,000 --
Xilinx 5-1/4%, 11/1/2002........... 150,000 --
CONVERTIBLE PREFERRED STOCKS
Chancellor Media $3................ 1,376 shs. --
- ------------------------------------------------------------------------------
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
ADDITIONS INCREASE 6/30/98
- --------- -------- --------
SELIGMAN INCOME PORTFOLIO
COMMON STOCKS
Texaco.......................... 3,200 shs. 3,200 shs.
CORPORATE BONDS
Chrysler Financial 6.09%,
4/6/2001..................... $300,000 $300,000
Consumers Energy 6-3/8%,
2/1/2008..................... 300,000 300,000
Dell Computer 6.55%,
4/15/2008.................... 400,000 400,000
Petroleum Geo-Services
7-1/2%, 3/31/2007............ 400,000 400,000
Time Warner 7-3/4%, 6/15/2005... 500,000 500,000
Viacom 7-3/4%, 6/1/2005......... 300,000 300,000
US GOVERNMENT SECURITIES
US Treasury Notes 5-3/4%,
11/30/2002................... 500,000 500,000
US Treasury Notes 6-5/8%,
5/15/2007.................... 500,000 500,000
US Treasury Notes 6-1/2%,
10/15/2016................... 300,000 300,000
PRINCIPAL AMOUNT
OR SHARES
----------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/98
- ---------- -------- --------
CORPORATE BONDS
General Motors Acceptance
5-5/8%, 2/1/1999............. $250,000 --
Owens-Illinois 7.85%,
5/15/2004.................... 300,000 --
US GOVERNMENT SECURITIES
US Treasury Notes 7-3/4%,
12/31/1999................... 500,000 --
SUBORDINATED CONVERTIBLE BONDS
Masco Tech 4-1/2%, 12/15/2003... 300,000 --
Santa Fe Pipelines
11.162%, 8/15/2010........... 250,000 --
Xilinx 5-1/4%, 11/1/2002........ 250,000 --
CONVERTIBLE PREFERRED STOCKS
Browning-Ferris Industries 7-1/4% 7,500 shs. --
IKON Office Solutions $5.04..... 3,500 --
McKesson 5%..................... 4,000 --
Sea Containers $4.00............ 5,000 --
- -------------
See footnotes on page P-8.
P-7
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIO OVERVIEW (unaudited) (continued)
- ------------------------------------------------------------------------------
- --------------
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
* "Diversification of Net Assets" is included for the Seligman Henderson
Portfolios because their portfolio holdings are listed by country rather
than by industry in the "Portfolios of Investments."
(1) Includes 2,800 shares received as a result of a 3-for-2 stock split.
(2) Includes 8,900 shares received as a result of a 2-for-1 stock split.
(3) Includes 2,500 shares received as a result of a 2-for-1 stock split.
(4) Includes 3,950 shares received as a result of a 3-for-2 stock split.
(5) Includes 11,250 shares received as a result of a 2-for-1 stock split.
(6) Includes 22,100 shares received as a result of a 2-for-1 stock split.
(7) Includes 34,400 shares received as a result of a 2-for-1 stock split.
(8) Includes 12,700 shares received as a result of a 2-for-1 stock split.
(9) Includes 6,300 shares received as a result of a 2-for-1 stock split.
(10) Includes 416 shares received as a result of a 1-for-9 stock split.
(11) Includes 1,100 shares received as a result of a 2-for-1 stock split.
(12) Includes 8,100 shares received as a result of a 10-for-1 stock split.
P-8
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN BOND PORTFOLIO
PRINCIPAL
AMOUNT VALUE
----------- -----------
US GOVERNMENT AND
GOVERNMENT AGENCY
SECURITIES -- 53.5%
US GOVERNMENT
SECURITIES -- 38.3%
US Treasury Bonds
8-3/4%, 5/15/2020.............. $ 500,000 $ 686,876
US Treasury Bonds
6-5/8%, 2/15/2027.............. 900,000 1,017,001
US Treasury Notes
6-1/4%, 10/31/2001............. 300,000 306,281
US Treasury Notes
6-1/4%, 6/30/2002.............. 200,000 205,000
US Treasury Notes
6-5/8%, 5/15/2007.............. 300,000 322,500
-----------
Total US Government
Securities (Cost $2,428,513)... 2,537,658
-----------
US GOVERNMENT
AGENCY SECURITIES -- 15.2%
(Cost $1,005,251)
Government National Mortgage
Association 6-1/2%, 4/15/2028+. 1,008,064 1,006,805
-----------
TOTAL US GOVERNMENT AND
GOVERNMENT AGENCY SECURITIES
(Cost $3,433,764).............. 3,544,463
-----------
CORPORATE BONDS -- 41.6%
AT&T Capital 6-1/4%, 5/15/2001.... 200,000 200,196
Associates Corp. of North
America 6-1/2%, 8/15/2002...... 200,000 203,260
Barrett Resources 7.55%,
2/1/2007....................... 200,000 209,615
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS (continued)
Capital One Bank
8-1/8%, 3/1/2000............... $ 150,000 $ 154,613
Chrysler Financial
6.09%, 4/6/2001................ 200,000 200,642
Dell Computer
6.55%, 4/15/2008............... 200,000 203,120
Equifax 6.30%, 7/1/2005........... 200,000 199,328
First USA Bank
5-3/4%, 1/15/1999.............. 100,000 99,978
Loewen Group International
7-1/2%, 4/15/2001.............. 200,000 203,708
Petroleum Geo-Services
7-1/2%, 3/31/2007.............. 200,000 217,585
Philip Morris 7-1/8%, 8/15/2002... 200,000 205,882
Time Warner 9-1/8%, 1/15/2013..... 200,000 246,682
Viacom 7-3/4%, 6/1/2005........... 200,000 214,247
Woolworth 7%, 6/1/2000............ 200,000 202,833
-----------
TOTAL CORPORATE BONDS
(Cost $2,699,074).............. 2,761,689
-----------
SHORT-TERM HOLDINGS -- 3.8%
(Cost $250,000)................ 250,000
-----------
TOTAL INVESTMENTS -- 98.9%
(Cost $6,382,838).............. 6,556,152
OTHER ASSETS LESS
LIABILITIES-- 1.1%............. 74,402
-----------
NET ASSETS-- 100.0%............... $ 6,630,554
-----------
-----------
- -------------
+ 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-9
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 89.3%
BASIC MATERIALS -- 1.7%
Corn Products International*..... 4,200 $ 142,275
Minerals Technologies............ 5,000 254,375
-----------
396,650
-----------
CAPITAL GOODS -- 7.2%
Diebold.......................... 8,800 254,100
Molex............................ 7,300 182,956
Rayovac*......................... 20,900 474,169
RELTEC*.......................... 6,300 283,500
U.S. Filter*..................... 9,200 258,175
Vishay Intertechnology*.......... 13,345 239,376
-----------
1,692,276
-----------
COMMUNICATION SERVICES -- 4.2%
Century Telephone Enterprises.... 9,900 454,163
Frontier......................... 7,900 248,850
Tele-Communications (Series A)
TCI Ventures Group*........... 14,000 280,437
-----------
983,450
-----------
CONSUMER CYCLICALS -- 21.9%
Authentic Fitness................ 13,200 208,725
AutoZone*........................ 17,500 558,906
Budget Group (Class A)*.......... 15,200 485,450
Echlin........................... 3,200 157,000
Harley-Davidson.................. 7,600 294,500
Interpublic Group of
Companies..................... 9,900 600,806
Jones Apparel Group*............. 15,200 555,750
Laidlaw (Canada)................. 28,200 343,687
Liz Claiborne.................... 9,200 480,700
Lowe's Companies................. 9,200 373,175
Proffitt's*...................... 11,000 444,125
Snyder Communications*........... 5,200 228,800
TJX Companies.................... 17,800 429,425
-----------
5,161,049
-----------
CONSUMER STAPLES -- 12.2%
Aurora Foods*.................... 7,000 147,875
Cardinal Health.................. 3,000 281,250
CBS.............................. 17,700 561,975
Clear Channel
Communications*............... 1,000 109,125
Clorox........................... 3,300 314,738
Dial............................. 14,500 376,094
ITT Educational Services*........ 10,200 328,950
SHARES VALUE
----------- -----------
CONSUMER STAPLES (continued)
Kroger*.......................... 6,600 $ 282,975
Newell........................... 5,900 293,894
Sinclair Broadcast Group
(Class A)*.................... 6,000 172,125
-----------
2,869,001
-----------
ENERGY -- 5.0%
Barrett Resources*............... 9,400 351,912
Camco International.............. 3,400 264,775
Cooper Cameron*.................. 3,600 183,600
Tosco............................ 6,700 196,812
Transocean Offshore.............. 4,300 191,350
-----------
1,188,449
-----------
FINANCIAL SERVICES -- 12.7%
AFLAC............................ 8,600 260,687
Life Re.......................... 3,600 295,200
Nationwide Financial Services
(Class A)..................... 8,000 408,000
Ocwen Financial*................. 10,500 282,188
Old Republic International....... 8,850 259,416
Progressive (Ohio)............... 3,700 521,700
Provident Companies.............. 7,900 272,550
Schwab (Charles)................. 11,600 377,000
SouthTrust....................... 6,950 302,759
-----------
2,979,500
-----------
HEALTH CARE -- 8.3%
Biogen*.......................... 4,300 210,700
Covance*......................... 21,700 488,250
HEALTHSOUTH*..................... 8,000 213,500
Omnicare......................... 9,900 377,437
Universal Health Services
(Class B)*.................... 11,500 671,312
-----------
1,961,199
-----------
TECHNOLOGY -- 15.0%
ADC Telecommunications*.......... 7,200 263,025
BMC Software*.................... 8,000 415,750
Cadence Design Systems*.......... 7,200 225,000
Fiserv*.......................... 9,600 407,700
Gartner Group (Class A)*......... 14,300 500,053
HNC Software*.................... 6,300 257,316
Maxim Integrated Products*....... 10,500 333,047
Microchip Technology*............ 12,200 319,488
Network Associates*.............. 8,400 401,888
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-10
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO (continued)
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
TECHNOLOGY (continued)
Synopsys*........................ 8,600 shs. $ 393,719
-----------
3,516,986
-----------
UTILITIES -- 1.1%
AES*............................. 4,700 247,044
-----------
TOTAL COMMON STOCKS
(Cost $17,211,566)............ 20,995,604
-----------
SHORT-TERM HOLDINGS -- 11.0%
REPURCHASE AGREEMENTS -- 8.5%
(Cost $2,000,000)
HSBC Securities, Inc. 5%,
dated 6/24/1998,
maturing 7/1/1998
collateralized by:
$1,993,000 US Treasury
Notes 5-7/8%, 11/15/2005,
with a fair market value of
$2,044,653.............. $ 2,000,000 2,000,000
PRINCIPAL
AMOUNT VALUE
----------- -----------
FIXED TIME DEPOSITS -- 2.5%
(Cost $600,000)
First National Bank of Chicago,
Grand Cayman 5.40%,
dated 6/30/1998,
maturing 7/6/1998.............. $ 600,000 $ 600,000
-----------
TOTAL SHORT-TERM HOLDINGS
(Cost $2,600,000).............. 2,600,000
-----------
TOTAL INVESTMENTS -- 100.3%
(Cost $19,811,566)............. 23,595,604
OTHER ASSETS LESS
LIABILITIES-- (0.3)%........... (82,126)
-----------
NET ASSETS-- 100.0%............... $23,513,478
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ---------- ----------
US GOVERNMENT
SECURITIES -- 69.4 %
US Treasury Bills,
7/23/1998............. 5.07% $ 700,000 $ 697,887
US Treasury Notes,
4-3/4%, 8/31/1998..... 5.30 1,500,000 1,498,547
US Treasury Notes,
4-3/4%, 9/30/1998..... 5.36 2,500,000 2,496,058
US Treasury Notes,
5-7/8%, 10/31/1998.... 5.35 1,700,000 1,702,634
----------
TOTAL US GOVERNMENT
SECURITIES
(Cost $6,395,126)..... 6,395,126
----------
COMMERCIAL
PAPER -- 27.4%
American Express Credit
Corp., 7/13/1998...... 5.54 500,000 499,088
American General Finance
Corp., 8/6/1998....... 5.53 490,000 487,329
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ---------- ----------
COMMERCIAL
PAPER (continued)
Associates Corp. of North
America, 8/28/1998 5.57% $ 530,000 $ 525,304
General Electric Capital
Corp., 9/4/1998....... 5.58 530,000 524,737
Norwest Financial, Inc.,
8/10/1998............. 5.55 490,000 487,022
----------
TOTAL COMMERCIAL PAPER
(Cost $2,523,480)................ 2,523,480
----------
OTHER INVESTMENTS
(Cost $3,970).................... 3,897
----------
TOTAL INVESTMENTS -- 96.8%
(Cost $8,922,576)................ 8,922,503
OTHER ASSETS LESS
LIABILITIES-- 3.2%............... 290,453
----------
NET ASSETS-- 100.0%................. $9,212,956
----------
----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-11
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 96.8%
AEROSPACE/DEFENSE -- 3.2%
General Dynamics................. 11,400 $ 530,100
United Technologies.............. 14,200 1,313,500
-----------
1,843,600
-----------
AUTOMOTIVE AND RELATED -- 4.8%
Chrysler......................... 21,100 1,189,513
Dana............................. 8,700 465,450
Eaton............................ 5,500 427,625
Harley-Davidson.................. 18,200 705,250
-----------
2,787,838
-----------
BASIC MATERIALS -- 0.8%
Aluminum Company of
America....................... 7,500 494,531
-----------
BUSINESS SERVICES AND
SUPPLIES -- 1.3%
Xerox............................ 7,400 752,025
-----------
CHEMICALS -- 2.2%
duPont (E.I.) de Nemours......... 9,100 679,088
Goodrich (B.F.).................. 12,400 615,350
-----------
1,294,438
-----------
COMPUTER GOODS AND
SERVICES -- 4.0%
International Business
Machines...................... 9,100 1,044,794
Microsoft*....................... 12,000 1,300,875
-----------
2,345,669
-----------
CONSUMER GOODS AND
SERVICES -- 9.6%
Anheuser-Busch................... 17,900 844,656
Avon Products.................... 6,800 527,000
Coca-Cola........................ 11,700 1,000,350
General Mills.................... 7,900 540,162
PepsiCo.......................... 18,200 749,612
Philip Morris.................... 23,400 921,375
Procter & Gamble................. 9,100 828,669
RJR Nabisco Holdings............. 7,300 173,375
-----------
5,585,199
-----------
DRUGS AND HEALTH
CARE -- 11.0%
Abbott Laboratories.............. 16,600 678,525
American Home Products........... 19,800 1,024,650
Baxter International............. 9,900 532,744
SHARES VALUE
----------- -----------
DRUGS AND HEALTH
CARE (continued)
Bristol-Myers Squibb............. 9,700 $ 1,114,894
Johnson & Johnson................ 9,900 730,125
Merck............................ 7,800 1,043,250
Pfizer........................... 4,900 532,569
Schering-Plough.................. 8,700 797,137
-----------
6,453,894
-----------
ELECTRIC AND GAS
UTILITIES -- 3.9%
Edison International............. 22,900 676,981
Unicom*.......................... 17,600 617,100
The Williams Cos................. 29,100 982,125
-----------
2,276,206
-----------
ELECTRONICS -- 1.6%
Raytheon (Class B)............... 16,000 946,000
-----------
ENERGY -- 10.5%
British Petroleum
(ADRs) (United Kingdom)....... 6,600 582,450
Chevron.......................... 7,300 606,356
Exxon............................ 25,600 1,825,600
Mobil............................ 18,500 1,417,562
Royal Dutch Petroleum
(Netherlands)................. 15,700 860,556
Schlumberger..................... 3,000 204,937
Texaco........................... 11,000 656,562
-----------
6,154,023
-----------
FINANCE AND
INSURANCE -- 16.3%
ACE (Bermuda).................... 13,700 534,300
Ahmanson (H.F.).................. 12,200 866,200
American General................. 15,200 1,082,050
American International Group..... 8,400 1,226,400
BankAmerica...................... 8,400 726,075
Bank of New York................. 16,400 995,275
Citicorp......................... 3,042 454,019
Federal National Mortgage
Association................... 10,900 662,175
Marsh & McLennan................. 11,850 716,184
Mellon Bank...................... 11,400 793,725
St. Paul Companies............... 16,900 710,856
Travelers........................ 12,400 751,750
-----------
9,519,009
-----------
FOOD -- 2.9%
ConAgra.......................... 27,300 865,069
Sara Lee......................... 14,800 827,875
-----------
1,692,944
-----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-12
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
SHARES VALUE
----------- -----------
MACHINERY AND INDUSTRIAL
EQUIPMENT -- 4.7%
GATX............................. 11,600 $ 508,950
General Electric................. 24,300 2,211,300
-----------
2,720,250
-----------
METALS AND MINING -- 0.8%
Allegheny Teledyne............... 20,900 478,088
-----------
PAPER AND PACKAGING -- 3.5%
Fort James....................... 13,300 591,850
Kimberly-Clark................... 11,700 536,738
Mead............................. 16,400 520,700
Union Camp....................... 7,600 377,150
-----------
2,026,438
-----------
PRINTING AND PUBLISHING -- 0.7%
Gannett.......................... 6,100 433,481
-----------
RETAIL TRADE -- 3.9%
May Department Stores............ 12,100 792,550
Penney (J.C.).................... 11,200 809,900
Wal-Mart Stores.................. 10,800 656,100
-----------
2,258,550
-----------
TECHNOLOGY -- 1.2%
Intel............................ 9,700 718,709
-----------
TELECOMMUNICATIONS -- 2.8%
American Telephone &
Telegraph..................... 5,700 325,613
SHARES VALUE
----------- -----------
TELECOMMUNICATIONS (continued)
Sprint........................... 5,900 $ 415,950
WorldCom*........................ 18,500 894,359
-----------
1,635,922
-----------
TELEPHONE UTILITIES -- 4.9%
Ameritech........................ 14,600 655,175
GTE.............................. 16,200 901,125
SBC Commuications................ 16,300 652,000
US WEST Communications
Group......................... 13,900 653,300
-----------
2,861,600
-----------
TRANSPORTATION -- 0.8%
Norfolk Southern ................ 15,900 474,019
-----------
MISCELLANEOUS/
DIVERSIFIED -- 1.4%
AlliedSignal .................... 17,900 794,313
-----------
TOTAL COMMON STOCKS
(Cost $44,963,531)............ 56,546,746
SHORT-TERM HOLDINGS -- 3.9%
(Cost $2,300,000)............. 2,300,000
-----------
TOTAL INVESTMENTS -- 100.7%
(Cost $47,263,531)............ 58,846,746
OTHER ASSETS LESS
LIABILITIES-- (0.7)%.......... (404,822)
-----------
NET ASSETS-- 100.0%.............. $58,441,924
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 95.7%
COMMUNICATIONS
INFRASTRUCTURE -- 5.8%
Aspect Telecommunications*....... 31,900 $ 875,256
Cisco Systems*................... 17,500 1,611,641
ECI Telecommunications (Israel).. 45,200 1,711,950
Excel Switching*................. 50,000 1,246,875
Oak Industries*.................. 16,600 587,225
-----------
6,032,947
-----------
SHARES VALUE
----------- -----------
COMPUTER HARDWARE/
PERIPHERALS -- 18.3%
American Power Conversion*....... 39,400 $ 1,177,075
Apex PC Solutions................ 13,200 367,950
Creative Technology*
(Singapore)................... 136,800 1,697,175
Electronics for Imaging*......... 88,400 1,861,925
EMC*............................. 134,800 6,040,725
Encad*........................... 18,500 251,484
In Focus Systems*................ 15,400 109,244
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-13
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
SHARES VALUE
----------- -----------
COMPUTER HARDWARE/
PERIPHERALS (continued)
Lexmark International Group
(Class A)*.................... 35,200 $ 2,147,200
SMART Modular Technologies*...... 42,300 622,603
Splash Technology Holdings*...... 17,200 295,087
STB Systems*..................... 21,900 272,381
Storage Technology*.............. 58,600 2,541,775
Unisys*.......................... 27,800 785,350
Xerox............................ 9,600 975,600
-----------
19,145,574
-----------
COMPUTER SOFTWARE -- 21.3%
3Dfx Interactive*................ 20,900 357,259
3DO*............................. 41,400 132,609
Activision*...................... 15,400 159,294
ANSYS*........................... 21,200 206,700
Autodesk......................... 36,700 1,414,097
Broderbund Software*............. 9,700 221,281
Cadence Design Systems*.......... 42,600 1,331,250
Citrix Systems*.................. 20,700 1,416,009
Computer Associates
International................. 16,100 894,556
Compuware*....................... 36,700 1,875,141
Electronic Arts*................. 45,500 2,459,844
The Learning Company*............ 36,300 1,075,387
Microsoft*....................... 3,900 422,784
Network Associates*.............. 73,800 3,530,869
Parametric Technology*........... 38,900 1,053,947
Platinum Technology*............. 37,500 1,072,266
Structural Dynamics
Research*..................... 63,700 1,467,091
Synopsys*........................ 53,037 2,428,100
Tecnomatix Technologies*
(Israel)...................... 9,500 190,297
VERITAS Software*................ 13,500 558,141
-----------
22,266,922
-----------
CONTRACT MANUFACTURING/
CIRCUIT BOARDS -- 2.8%
ADFlex Solutions*................ 7,800 69,712
Hadco*........................... 21,000 489,562
Jabil Circuit*................... 13,500 446,344
Sanmina*......................... 19,500 842,766
SCI Systems*..................... 28,600 1,076,075
-----------
2,924,459
-----------
ELECTRONICS CAPITAL
EQUIPMENT -- 10.3%
Asyst Technologies*.............. 19,300 242,456
SHARES VALUE
----------- -----------
ELECTRONICS CAPITAL
EQUIPMENT (continued)
Cognex*.......................... 49,900 $ 930,947
Credence Systems*................ 42,800 814,537
Electro Scientific Industries*... 21,300 674,278
Etec Systems*.................... 36,800 1,296,050
International Business
Machines...................... 9,100 1,044,794
KLA-Tencor*...................... 34,300 950,753
Kulicke & Soffa Industries*...... 31,300 530,144
Novellus Systems*................ 42,400 1,514,475
Orbotech* (Israel)............... 24,900 903,403
Photronics*...................... 6,100 134,581
Teradyne*........................ 62,800 1,679,900
-----------
10,716,318
-----------
INFORMATION SERVICES -- 6.1%
BISYS Group*..................... 19,000 779,594
First Data....................... 51,900 1,728,919
Galileo International............ 15,600 702,975
Gartner Group (Class A)*......... 53,800 1,881,319
Information Resources*........... 30,700 568,909
Whittman-Hart*................... 14,700 712,031
-----------
6,373,747
-----------
MEDIA -- 16.6%
Belo (A.H.) (Class A)............ 37,800 921,375
Cablevision Systems (Class A)*... 6,600 551,100
CBS.............................. 113,300 3,597,275
Chancellor Media*................ 66,600 3,307,106
CKS Group*....................... 10,000 179,375
Clear Channel
Communications*............... 21,673 2,365,066
Cox Radio (Class A)*............. 15,500 670,375
Lamar Advertising (Class A)*..... 10,600 378,287
MediaOne Group*.................. 9,800 430,587
Outdoor Systems*................. 28,500 798,000
Sinclair Broadcast Group
(Class A)*.................... 44,200 1,267,987
Time Warner...................... 18,900 1,614,769
USA Networks*.................... 18,800 472,937
Ziff-Davis*...................... 57,600 799,200
-----------
17,353,439
-----------
SEMICONDUCTORS -- 7.5%
Amkor Technology*................ 94,000 878,313
Dallas Semiconductor............. 29,200 905,200
DSP Communications*.............. 10,300 141,625
Integrated Device Technology*.... 40,800 291,338
Lattice Semiconductor*........... 43,200 1,227,150
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-14
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
SHARES VALUE
-------- ----------
SEMICONDUCTORS (continued)
Maxim Integrated Products*....... 49,000 $1,554,219
Microchip Technology*............ 56,700 1,484,831
MMC Networks*.................... 9,300 296,147
PMC-Sierra* (Canada)............. 3,800 177,888
SIPEX*........................... 7,800 167,456
Xilinx*.......................... 19,400 660,206
-----------
7,784,373
-----------
TELECOMMUNICATIONS -- 7.0%
AirTouch Communications*......... 11,700 683,719
Ascend Communications*........... 23,300 1,154,078
Cincinnati Bell.................. 9,700 277,663
General Communications*.......... 34,900 209,400
Level One Communications*........ 32,500 764,766
MCI Communications............... 29,100 1,690,528
Nextel Communications
(Class A)*.................... 19,100 474,516
Qwest Communications
International*................ 2,800 97,563
Tekelec*......................... 5,700 255,788
Tele-Communications
(Series A) TCI Group* ........ 19,300 741,241
SHARES OR
PRINCIPAL
AMOUNT VALUE
--------- -------------
TELECOMMUNICATIONS
(continued)
Tele-Communications
(Series A) TCI Ventures
Group*.................... 50,800 shs. $ 1,017,588
------------
7,366,850
------------
TOTAL COMMON STOCKS
(Cost $97,352,275)........ 99,964,629
------------
SUBORDINATED CONVERTIBLE
BONDS -- 0.2%
(Cost $190,000)
COMPUTER SOFTWARE -- 0.2%
Activision 6-3/4%, 1/1/2005.... $190,000 164,350
------------
SHORT-TERM HOLDINGS -- 3.3%
(Cost $3,500,000)......... 3,500,000
------------
TOTAL INVESTMENTS -- 99.2%
(Cost $101,042,275)....... 103,628,979
OTHER ASSETS LESS
LIABILITIES-- 0.8%........ 792,337
------------
NET ASSETS-- 100.0%.......... $104,421,316
------------
------------
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
SHARES VALUE
-------- ---------
COMMON STOCKS -- 96.1%
CAPITAL GOODS -- 11.9%
Allied Waste Industries*......... 30,500 $ 731,047
American Disposal Services *..... 7,600 356,487
Cognex*.......................... 28,860 538,419
Corporate Express*............... 56,800 718,875
Flanders*........................ 16,000 76,000
Fusion Systems (Rights)*......... 3,745 234
Innovative Valve Technologies*... 9,100 66,259
Integrated Electrical Services*.. 10,800 217,350
Kemet*........................... 40,600 534,144
Lamalie Associates*.............. 9,900 185,006
Metamor Worldwide*............... 10,000 352,187
Oak Industries*.................. 22,630 800,536
UCAR International*.............. 28,400 828,925
Waste Connections*............... 10,000 199,375
Waterlink*....................... 12,700 107,950
-----------
5,712,794
-----------
COMMUNICATION SERVICES -- 0.0%
Arch Communications Group*....... 3,965 15,488
-----------
SHARES VALUE
-------- ---------
CONSUMER CYCLICALS -- 18.9%
AccuStaff*....................... 38,600 $ 1,206,250
American Homestar*............... 32,737 784,665
Analysts International........... 7,500 213,281
Barnes & Noble*.................. 15,400 576,537
Borders Group*................... 7,600 281,200
Career Education*................ 10,000 247,500
CMP Media (Class A)*............. 3,100 53,669
Copart*.......................... 14,400 331,650
Duane Reade*..................... 13,600 408,000
HA-LO Industries*................ 12,700 395,287
Journal Register*................ 28,100 470,675
Market Facts*.................... 9,700 207,337
Personnel Group of America*...... 42,400 848,000
Petersen Companies
(Class A)*.................... 16,700 427,937
Pittston Brink's Group........... 11,900 438,812
PMT Services*.................... 33,400 849,612
Polymer Group*................... 18,700 217,388
Pre-Paid Legal Services*......... 7,100 224,094
Primark*......................... 7,100 222,319
- ------------
* Non-income producing security.
See Notes to Financial Statements.
P-15
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE
-------- ---------
CONSUMER CYCLICALS (continued)
RDO Equipment (Class A)*......... 8,300 $ 139,025
Vlasic Foods International*...... 21,100 243,513
Ziff-Davis*...................... 8,400 116,550
Zindart (ADRs)* (Hong Kong)...... 9,100 124,272
-----------
9,027,573
-----------
CONSUMER STAPLES -- 13.1%
Aurora Foods*.................... 12,200 257,725
Carriage Services (Class A)*..... 19,100 479,887
Coinmach Laundry*................ 42,300 1,001,981
Educational Medical*............. 30,600 276,356
EduTrek International
(Class A)*.................... 23,700 579,169
Equity Corporation*.............. 17,100 410,400
Hearst-Argyle Television
(Class A)*.................... 18,381 737,538
Jacor Communications*............ 13,350 788,484
Premier Parks*................... 4,000 266,500
Provant*......................... 16,700 307,906
Sinclair Broadcast Group
(Class A)*.................... 12,600 361,462
U.S. Foodservice*................ 18,300 641,644
Youth Services International*.... 20,800 153,400
-----------
6,262,452
-----------
ENERGY -- 4.3%
Cabot Oil & Gas.................. 11,400 228,000
Calpine*......................... 31,800 641,962
Eagle Geophysical*............... 10,800 114,075
McDermott International.......... 11,600 399,475
Pogo Producing................... 11,410 286,676
Pride International*............. 6,200 105,012
Santa Fe Energy Resources*....... 25,300 271,975
-----------
2,047,175
-----------
FINANCIAL SERVICES -- 9.3%
American Capital Strategies*..... 13,900 317,094
Crusader Holding*................ 3,300 54,037
DST System*...................... 9,100 509,600
ESG Re........................... 12,700 280,194
First Commonwealth Financial..... 71,700 1,071,019
First Investors Financial
Services Group*............... 2,000 12,750
First Sierra Financial*.......... 7,100 216,106
FirstService*.................... 16,000 204,000
Freedom Securities*.............. 1,500 27,187
Imperial Credit Industries*...... 21,100 490,575
Insignia Financial Group*........ 23,500 575,750
SHARES VALUE
-------- ---------
FINANCIAL SERVICES (continued)
Ocwen Financial*................. 9,600 $ 258,000
Stirling Cooke Brown
Holdings...................... 1,900 53,200
T&W Financial*................... 15,000 383,437
-----------
4,452,949
-----------
HEALTH CARE -- 15.4%
American Dental Partners......... 10,000 140,625
American HomePatient*............ 21,200 404,125
AMSurg (Class A)*................ 10,000 76,250
Castle Dental Centers*........... 55,000 537,969
Collaborative Clinical
Research*..................... 20,000 82,500
CompDent*........................ 21,300 333,478
Dentsply International........... 13,270 330,091
Hanger Orthopedic Group*......... 20,800 423,800
HealthCor Holdings*.............. 13,700 17,981
IMNET Systems*................... 11,800 158,194
NCS Healthcare (Class A)*........ 5,400 154,237
Omnicare......................... 5,400 205,875
Orthalliance (Class A)*.......... 15,000 214,219
PMR*............................. 11,400 114,712
Professional Detailing*.......... 5,500 134,406
Province Healthcare*............. 24,300 661,416
PSS World Medical*............... 33,000 482,625
Quorum Health Group*............. 9,100 240,866
Renex*........................... 50,000 290,625
Schein Pharmaceutical*........... 7,100 189,038
Somnus Medical
Technologies*................. 20,000 161,250
Total Renal Care Holdings*....... 22,500 776,250
Triangle Pharmaceuticals*........ 12,200 179,188
Universal Health Services
(Class B)*.................... 10,000 583,750
Watson Pharmaceuticals*.......... 10,500 490,219
-----------
7,383,689
-----------
TECHNOLOGY -- 19.8%
Aavid Thermal Technologies*...... 3,000 87,188
ADE*............................. 5,700 83,719
Affiliated Computer Services
(Class A)*.................... 11,400 438,900
American Management
Systems*...................... 6,000 179,625
Amkor Technology*................ 6,100 56,997
ANTEC*........................... 22,200 516,844
Avant!*.......................... 30,000 741,563
AVX.............................. 12,700 203,994
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-16
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE
-------- ---------
TECHNOLOGY (continued)
BISYS Group*..................... 12,800 $ 525,200
Black Box*....................... 10,800 358,763
Burr-Brown*...................... 31,350 663,248
Ceridian*........................ 19,900 1,169,125
CIDCO*........................... 1,600 7,450
Credence Systems*................ 28,400 540,488
General Semiconductors*.......... 33,100 326,863
Glenayre Technologies*........... 32,200 348,163
Global-Tech Appliances*.......... 2,900 41,688
HMT Technology*.................. 14,000 116,813
Indus International*............. 9,200 109,825
Inso*............................ 10,800 148,500
Integrated Device
Technology*................... 18,100 129,245
Lattice Semiconductor*........... 4,570 129,817
Microchip Technology*............ 18,800 492,325
Micrografx*...................... 3,000 42,938
National Instruments*............ 5,000 178,906
Omnipoint*....................... 18,000 413,438
PMC-Sierra* (Canada)............. 12,700 594,519
PSW Technologies*................ 23,700 134,053
Thermoquest*..................... 12,700 189,706
Unigraphics Solutions*........... 6,700 93,800
Waters*.......................... 7,300 430,244
-----------
9,493,947
-----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
-------- ---------
TRANSPORTATION -- 1.6%
Marine Transport*............ 2,610 shs. $ 10,685
OMI*......................... 26,100 208,800
US Xpress Enterprises
(Class A)*................ 11,800 196,175
Wisconsin Central Transport*.. 15,300 335,166
-----------
750,826
-----------
UTILITIES -- 1.8%
CalEnergy*................... 28,660 861,591
-----------
TOTAL COMMON STOCKS
(Cost $42,738,012)........ 46,008,484
REPURCHASE
AGREEMENTS -- 15.1%
(Cost $7,200,000)
HSBC Securities, Inc., 5%,
dated 6/30/1998, maturing
7/1/1998 collateralized by:
$5,806,000 US Treasury
Notes 9-3/8%, 2/15/2006,
with a fair market value
of $7,364,328 $7,200,000 7,200,000
-----------
TOTAL INVESTMENTS -- 111.2%
(Cost $49,938,012)....... 53,208,484
OTHER ASSETS
LESS LIABILITIES-- (11.2)%... (5,357,344)
-----------
NET ASSETS-- 100.0%.......... $47,851,140
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO
SHARES VALUE
-------- ---------
COMMON STOCKS -- 90.5%
AUSTRALIA -- 0.2%
Pacifica Group
(Automotive and Related)...... 5,200 $ 11,910
Telstra* (Telecommunications).... 2,500 6,407
----------
18,317
----------
BRAZIL -- 1.6%
Companhia Energetica de
Minas Gerais "CEMIG"
(ADRs) (Electric and
Gas Utilities)................ 465 14,008
Companhia Paranaense de
Energia "Copel" (ADRs)
(Electric and Gas Utilities).. 1,800 16,650
SHARES VALUE
-------- ---------
BRAZIL (continued)
Petroleo Brasileiro "Petrobras"
(ADRs) (Resources)............ 2,480 $ 46,100
Telecomunicacoes Brasileiras
"Telebras" (ADRs)
(Telecommunications).......... 510 55,686
----------
132,444
----------
CHINA -- 0.2%
Huaneng Power
International (ADRs)*
(Electric and Gas
Utilities).................... 1,400 18,812
----------
- ---------------
* Non-income producing 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
-------- ---------
FINLAND -- 3.5%
Nokia (Series A)
(Telecommunications).......... 2,900 $ 212,894
Raision Tehtaat (Consumer
Goods and Services)........... 4,000 72,047
----------
284,941
----------
FRANCE -- 8.5%
Accor (Entertainment
and Leisure).................. 540 150,750
Cap Gemini (Computer and
Technology Related)........... 1,111 174,141
ECIA (Automotive
and Related).................. 251 69,574
Genset (ADRs)* (Drugs and
Health Care).................. 2,500 73,516
Hachette Filipacchi Medias
(Publishing).................. 400 115,494
Valeo (Automotive
and Related).................. 1,030 105,024
----------
688,499
----------
GERMANY -- 4.9%
Adidas-Salomon (Consumer
Goods and Services)........... 910 157,035
Lufthansa (Transportation)....... 5,300 132,793
Metro (Retailing)................ 1,740 105,382
Metro (Rights)* (Retailing)...... 1,740 67
----------
395,277
----------
GREECE -- 1.6%
Hellenic Telecommunication
Organization
(Telecommunications).......... 4,166 106,652
National Bank of Greece
(Financial Services).......... 800 20,560
----------
127,212
----------
HUNGARY -- 1.3%
Magyar Tavkozlesi "Matav"
(ADRs)*
(Telecommunications).......... 2,070 60,936
MOL Magyar Olaj-es Gazipari
(GDRs)*+ (Resources).......... 1,740 46,893
----------
107,829
----------
INDIA -- 0.3%
Videsh Sanchar Nigam (GDRs)+.....
(Telecommunications).......... 1,950 20,329
----------
SHARES VALUE
-------- ---------
IRELAND -- 1.8%
Elan (ADRs)* (Drugs and
Health Care).................. 2,250 $ 144,703
----------
ITALY -- 2.1%
Aeroporti di Roma (Transportation) 8,250 51,842
Mediolanum*. (Financial Services) 3,600 114,019
----------
165,861
----------
JAPAN -- 5.9%
Bellsystem 24 (Business Goods
and Services)................. 300 44,842
Daitec (Business Goods
and Services)................. 800 12,648
Diamond Computer Service
(Computer and Technology
Related)...................... 3,000 41,824
H.I.S. (Entertainment and
Leisure)...................... 2,000 28,314
Hogy Medical (Drugs and
Health Care).................. 900 27,552
Keyence (Electronics)............ 400 43,405
Kyocera (Electronics)............ 1,100 53,595
Meitec (Computer and
Technology Related)........... 2,000 68,988
Nomura Securities (Financial
Services)..................... 4,000 46,423
Sanyo Shinpan Finance............
(Financial Services).......... 1,000 35,213
Secom (Support Services)......... 1,000 57,562
Softbank (Computer and
Technology Related)........... 500 19,403
----------
479,769
----------
MEXICO -- 0.9%
Grupo Iusacell (ADRs)*
(Telecommunications).......... 1,200 16,500
Panamerican Beverages
(Class A) (Consumer Goods
and Services)................. 1,700 53,444
----------
69,944
----------
NETHERLANDS -- 4.1%
Gucci Group (Consumer Goods
and Services)................. 1,300 68,900
Koninklijke KNP BT (Business
Goods and Services)........... 2,615 67,356
- ---------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
P-18
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
NETHERLANDS (continued)
Philips Electronics
(Electronics)................. 1,500 $ 125,843
PolyGram (Entertainment
and Leisure).................. 1,390 70,787
----------
332,886
----------
NORWAY -- 1.7%
Tomra Systems (Business
Goods and Services)........... 4,700 141,012
----------
RUSSIA -- 0.1%
Tatneft (ADRs)* (Resources)...... 1,400 10,850
----------
SINGAPORE -- 0.1%
Advanced Systems Automation
(Manufacturing and Industrial
Equipment).................... 16,000 6,356
----------
SOUTH KOREA -- 0.1%
Samsung Electronics (GDRs)*
(Electronics)................. 660 9,230
----------
SPAIN -- 5.8%
Actividades de Construccion y
Servicios (Construction
and Property)................. 2,500 75,010
Aguas de Barcelona (Consumer
Goods and Services)........... 2,000 111,415
Aguas de Barcelona (Rights)*.....
(Consumer Goods
and Services)................. 10 545
Centros Comerciales Continente
(Retailing)................... 4,000 91,217
Superdiplo* (Retailing).......... 3,600 77,873
Tabacalera (Class A) (Tobacco)... 5,500 112,523
----------
468,583
----------
SWEDEN -- 4.1%
Astra (Class A) (Drugs and
Health Care).................. 4,735 96,512
Autoliv (SDRs) (Automotive
and Related).................. 1,100 35,076
L.M. Ericsson Telefon (Series B).
(Telecommunications).......... 5,400 157,334
SHARES VALUE
-------- ---------
SWEDEN (continued)
Skandia Forsakrings
(Financial Services).......... 3,100 $ 44,192
----------
333,114
----------
SWITZERLAND -- 2.7%
Helvetia Patria Holding
(Financial Services).......... 75 88,598
Sairgroup (Transportation)....... 400 131,359
----------
219,957
----------
TAIWAN -- 0.1%
Siliconeware Precision Industries
(GDRs)* (Electronics)......... 1,020 8,160
----------
UNITED KINGDOM -- 12.0%
Airtours (Entertainment
and Leisure).................. 8,500 63,920
Ashtead Group (Construction
and Property)................. 14,000 55,091
Bodycote International (Industrial
Goods and Services)........... 6,000 105,546
British Biotech (Drugs and
Health Care).................. 14,000 8,579
CMG* (Computer and
Technology Related)........... 2,200 69,055
CRT Group (Support Services)..... 6,500 45,141
Games Workshop Group
(Entertainment and Leisure)... 4,500 43,519
Granada Group
(Entertainment and Leisure)... 4,500 82,836
Halma (Industrial Goods
and Services)................. 30,000 62,277
Ladbroke Group
(Entertainment and Leisure)... 13,000 71,694
Parity (Computer and
Technology Related)........... 5,625 73,673
Pizza Express (Restaurants)...... 8,000 114,317
Rolls Royce (Aerospace).......... 12,600 52,050
WPP Group (Business Goods
and Services)................. 19,000 124,980
----------
972,678
----------
UNITED STATES -- 26.9%
American International Group
(Financial Services).......... 650 94,900
American Telephone & Telegraph...
(Telecommunications).......... 1,500 85,687
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-19
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
UNITED STATES (continued)
Bristol-Myers Squibb (Drugs
and Health Care).............. 1,100 $ 126,431
Cardinal Health (Drugs
and Health Care).............. 1,200 112,500
Coca-Cola Enterprises (Consumer
Goods and Services)........... 1,700 66,725
ConAgra (Consumer Goods
and Services)................. 3,600 114,075
Dayton Hudson (Retailing)........ 2,600 126,100
Disney, Walt (Entertainment
and Leisure).................. 1,000 105,063
General Electric (Diversified)... 1,300 118,300
Hewlett-Packard (Computer
and Technology Related)....... 1,200 71,850
Interpublic Group of Companies
(Business Goods and
Services)..................... 1,750 106,203
Kroger* (Consumer Goods
and Services)................. 1,500 64,312
Lilly (Eli) (Drugs and
Health Care).................. 1,300 85,881
MBNA (Financial Services)........ 2,275 75,075
Merck (Drugs and
Health Care).................. 900 120,375
Microsoft* (Computer and
Technology Related)........... 1,000 108,406
PepsiCo (Consumer Goods
and Services)................. 1,100 45,306
Pfizer(Drugs and Health Care) 1,300 141,294
Philip Morris (Tobacco).......... 2,300 90,563
Procter & Gamble (Consumer
Goods and Services)........... 1,100 100,169
Travelers (Financial Services)... 1,950 118,219
SHARES OR
PRINCIPAL
AMOUNT VALUE
-------- ---------
UNITED STATES (continued)
Xerox (Business Goods and
Services).................. 1,000 shs. $ 101,625
----------
2,179,059
----------
TOTAL COMMON STOCKS
(Cost $6,038,874)......... 7,335,822
----------
PREFERRED STOCKS -- 2.6%
(Cost $103,690)
GERMANY
Porsche (Non-Voting)*
(Automotive and
Related)................... 72 208,274
----------
FIXED TIME DEPOSITS -- 6.2%
Canadian Imperial Bank of
Commerce, Grand Cayman
5-3/4%, dated 6/30/1998,
maturing 7/2/1998.......... $250,000 250,000
First National Bank of Chicago,
Grand Cayman 5.40%,
dated 6/30/1998,
maturing 7/2/1998......... 250,000 250,000
----------
TOTAL FIXED TIME DEPOSITS
(Cost $500,000)............ 500,000
----------
TOTAL INVESTMENTS -- 99.3%
(Cost $6,642,564)......... 8,044,096
OTHER ASSETS LESS
LIABILITIES-- 0.7%........ 59,953
----------
NET ASSETS-- 100.0%.......... $8,104,049
----------
----------
- ----------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO
SHARES VALUE
-------- ---------
COMMON STOCKS -- 92.3%
AUSTRALIA -- 0.6%
BRL Hardy
(Consumer Goods and
Services)..................... 7,000 $ 22,532
CSL (Medical Products and
Technology)................... 3,200 20,699
Futuris (Automotive Parts
Manufacturing)................ 16,273 14,304
SHARES VALUE
-------- ---------
AUSTRALIA (continued)
HIH Winterthur International
Holdings
(Financial Services).......... 11,300 $ 19,935
Hoyts Cinemas Group (Leisure
and Hotels)................... 13,000 16,899
National Foods (Consumer
Goods and Services)........... 12,500 21,356
Pasminco (Metals)................ 18,000 13,705
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-20
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
AUSTRALIA (continued)
Henry Walker Group
(Support Services)............ 14,000 $ 14,906
----------
144,336
----------
AUSTRIA -- 0.9%
Bau Holdings (Construction
and Property)................. 2,600 147,187
Bau Holdings (Voting Preference
Shares) (Construction
and Property)................. 1,380 65,645
----------
212,832
----------
BELGIUM -- 1.1%
Telinfo (Telecommunications)..... 2,350 260,915
----------
BERMUDA -- 0.1%
Dairy Farm International
Holdings (Retailing).......... 12,500 13,375
----------
CANADA -- 0.8%
PMC-Sierra* (Technology)......... 2,600 121,713
Teleglobe (Telecommunications)... 2,600 69,411
----------
191,124
----------
DENMARK -- 2.2%
Danske Traelastkompagni
(Construction and Property)... 2,043 194,020
Sydbank (Financial Services)..... 2,300 127,917
Thorkild Kristensen(.Construction
and Property)................. 2,065 191,912
----------
513,849
----------
FINLAND -- 1.3%
Tamro (Series A) (Drugs and
Health Care).................. 30,000 193,763
Valmet (Capital Goods)........... 6,715 115,574
----------
309,337
----------
FRANCE -- 5.3%
ECIA (Automotive Parts
Manufacturing)................ 910 252,240
Etam Developpement*
(Retailing)................... 1,659 128,649
Genset (ADRs)* (Drugs and
Health Care).................. 2,840 83,514
IMS International Metal
Service (Metals).............. 8,100 112,261
SHARES VALUE
-------- ---------
FRANCE (continued)
L'Europeenne d'Extincteurs
(Manufacturing)............... 1,610 $ 129,897
L'Europeenne d'Extincteurs
(Warrants)*
(Manufacturing)............... 246 2,801
Montupet (Automotive Parts
Manufacturing)................ 6,440 255,012
Sylea (Automotive Parts
Manufacturing)................ 1,807 166,661
Virbac (Veterinary Products)..... 1,360 108,156
----------
1,239,191
----------
GERMANY -- 1.5%
Moebel Walther (Retailing)....... 3,400 159,845
Tarkett (Consumer Goods
and Services)................. 5,484 181,991
----------
341,836
----------
HONG KONG -- 0.4%
Esprit Holdings (Retailing)...... 32,000 9,707
Johnson Electric Holdings
(Electronics)................. 5,500 20,376
Li & Fung (Consumer Goods
and Services)................. 14,000 22,589
Shenzhen Expressway (Series H)...
(Transportation).............. 90,000 16,613
Yanzhou Coal Mining (Series H)*
(Resources)................... 30,000 5,731
Zindart (ADRs)*...(Consumer Goods
and Services)................. 2,100 28,678
----------
103,694
----------
INDIA -- 0.2%
Gujurat Ambuja Cement (GDRs).....
(Building Materials).......... 10,839 51,214
----------
IRELAND -- 0.3%
Esat Telecom Group (ADRs)*
(Telecommunications).......... 1,600 60,600
----------
ITALY -- 0.5%
La Doria (Consumer Goods
and Services)................. 41,700 125,281
----------
JAPAN -- 4.6%
Aiya (Restaurants)............... 2,000 15,379
Asahi Diamond Industries
(Manufacturing)............... 3,000 13,474
- -------------
* 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
-------- ---------
JAPAN (continued)
Asatsu (Advertising)............. 1,900 $ 38,572
Benesse (Business Services)...... 1,000 34,853
Enplas (Electronics)............. 1,000 17,534
Forval (Telecommunications)...... 1,000 8,623
Fujicco (Consumer Goods
and Services)................. 2,000 21,990
Fujitsu Business Systems
(Business Services)........... 2,000 27,308
Glory Kogyo (Manufacturing)...... 2,000 30,326
Higashi Nihon House
(Construction and
Property)..................... 3,000 11,448
H.I.S. (Leisure and Hotels)...... 1,000 14,157
Hitachi Information Systems
(Computer Software)........... 2,000 19,259
Hitachi Medical (Medical
Products and Technology)...... 2,000 21,559
Hogy Medical (Medical Products
and Technology)............... 700 21,429
Hokkai Can (Manufacturing)....... 7,000 16,600
Horiba Instruments
(Electronics)................. 4,000 41,680
Iino Kaiun* (Transportation)..... 15,000 28,457
Japan Information Processing
Service (Computer
Software)..................... 2,200 18,972
Kentucky Fried Chicken
(Restaurants)................. 2,000 19,978
Kissei Pharmaceutical (Drugs
and Health Care).............. 1,000 14,732
Komatsu Seiren (Manufacturing)... 4,000 19,547
Maspro Denkoh
(Telecommunications).......... 2,000 17,118
Mitsubishi Cable Industries
(Manufacturing)............... 7,000 13,330
Mitsubishi Gas Chemical
(Chemicals)................... 3,000 9,033
Mitsui Home (Construction and
Property)..................... 5,000 22,313
Namura Shipbuilding
(Capital Goods)............... 4,000 9,371
Nichicon (Manufacturing)......... 2,000 22,277
Nippon Broadcasting System
(Media)....................... 1,000 42,039
SHARES VALUE
-------- ---------
JAPAN (continued)
Nippon Seiki (Automotive Parts
Manufacturing)................ 2,000 $ 12,217
Nishio Rent All (Construction and
Property)..................... 2,000 16,097
Nissha Printing (Paper and
Printing)..................... 3,000 18,325
Nisshin Fire & Marine Insurance
(Financial Services).......... 8,000 20,121
Nittetsu Mining (Resources)...... 4,000 14,372
Nova (Consumer Goods and
Services)..................... 3,000 8,580
Okinawa Electric Power
(Electric Utilities).......... 1,200 18,540
Olympus Optical (Electronics).... 2,000 17,333
Otsuka Kagu (Retailing).......... 500 22,996
Ryoyo Electro (Electronics)...... 3,000 35,184
Sagami Chain (Restaurants)....... 2,000 17,649
Sanyo Special Steel (Metals)..... 12,000 13,366
Sodick (Manufacturing)........... 5,000 14,372
Sundrug (Retailing).............. 1,800 19,015
Takasago (Chemicals)............. 4,000 18,109
TOEI (Media)..................... 4,000 12,562
Tokyo Style (Manufacturing)...... 2,000 19,547
Towa Pharmaceutical (Drugs and
Health Care).................. 2,000 13,510
Toyo Ink Manufacturing
(Chemicals)................... 7,000 15,594
Tsubaki Nakashima
(Manufacturing)............... 9,000 48,960
Tsudakoma (Manufacturing)........ 11,000 20,395
Tsutsumi Jewelry (Retailing)..... 3,000 39,452
Xebio (Retailing)................ 2,600 38,770
Yokohama Reito (Distributors).... 1,000 6,992
----------
1,073,416
----------
NETHERLANDS -- 4.0%
Benckiser (Series B)* (Consumer
Goods and Services)........... 2,700 165,716
CMG* (Computer Software)......... 18,000 564,998
Samas Groep (Manufacturing)...... 3,036 213,000
----------
943,714
----------
NEW ZEALAND -- 0.0%
Sky Network Television*
(Media)....................... 8,000 9,939
----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-22
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
NORWAY -- 0.8%
Ekornes (Manufacturing).......... 13,800 $ 169,215
Tandberg Television* (Media)..... 2,600 21,919
----------
191,134
----------
PHILIPPINES -- 0.1%
Philippine Long Distance Telephone
(Telecommunications).......... 1,000 22,782
----------
SINGAPORE -- 0.2%
Excel Machine Tools*
(Manufacturing)............... 40,000 5,692
Keppel FELS (Industrial
Goods and Services)........... 5,000 14,971
Venture Manufacturing
(Electronics)................. 4,500 8,538
Want Want Holdings*
(Consumer Goods
and Services)................. 13,920 10,301
----------
39,502
----------
SOUTH KOREA -- 0.1%
L.G. Chemical* (Chemicals)....... 1,000 5,535
Samsung Display Devices
(Electronics)................. 228 6,227
----------
11,762
----------
SWEDEN -- 2.1%
Angpanneforeningen (Series B)
(Business Services)........... 4,375 76,591
BT Industries (Capital Goods).... 770 15,502
Bure Investment Aktiebolaget
(Financial Services).......... 4,700 74,640
Finnveden (Series B)
(Manufacturing)............... 3,600 82,381
Munksjo (Paper and Printing)..... 8,400 81,931
PLM (Manufacturing).............. 9,500 149,681
----------
480,726
----------
SWITZERLAND -- 2.5%
Bon Appetit Holding
(Retailing)................... 197 130,944
Bon Appetit Holding (Warrants)*
(Retailing)................... 197 4,019
Hero (Consumer Goods
and Services)................. 150 101,678
Kardex (Industrial Goods
and Services)................. 484 149,707
SHARES VALUE
-------- ---------
SWITZERLAND (continued)
Selecta Group* (Consumer
Goods and Services)........... 850 $ 181,244
SIG Schweizerische
Industrie-Gesellschaft
Holding (Manufacturing)....... 36 29,260
----------
596,852
----------
TAIWAN -- 0.1%
Taiwan American Fund*
(Miscellaneous)............... 2,000 31,820
----------
THAILAND -- 0.1%
Hana Microelectronics
(Electronics)................. 5,000 12,827
----------
UNITED KINGDOM -- 19.8%
AEA Technology (Industrial
Goods and Services)........... 6,500 98,356
Allied Leisure (Leisure
and Hotels)................... 97,500 40,643
Ashtead Group (Construction
and Property)................. 106,600 419,478
BTG (Technology)................. 7,000 97,460
Capital Radio (Media)............ 20,500 242,177
Chiroscience Group (Drugs
and Health Care).............. 4,250 19,665
Clinton Cards (Retailing)........ 40,000 92,707
Cobham (Manufacturing)........... 8,950 156,694
CRT Group
(Support Services)............ 30,000 208,342
David Brown Group
(Manufacturing)............... 40,657 140,667
Dawson Group (Transportation).... 26,600 110,882
Domnick Hunter Group
(Manufacturing)............... 20,000 124,221
Druck Holdings (Industrial
Goods and Services)........... 11,500 54,649
Electronics Boutique*
(Retailing)................... 129,800 191,539
F.I. Group (Computer
Software)..................... 14,196 362,749
Fairey Group (Electronics)....... 15,200 83,003
Games Workshop Group
(Retailing)................... 9,400 90,907
GWR Group (Media)................ 24,000 89,639
IBC Group
(Business Services)........... 27,800 232,232
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-23
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
UNITED KINGDOM (continued)
ICON (ADRs)* (Consumer
Goods and Services)........... 5,000 $ 126,563
National Express Group
(Transportation).............. 14,000 226,083
Parity (Computer Software)....... 25,312 331,522
Peptide Therapeutics (Drugs and
Health Care).................. 2,750 10,455
Pizza Express (Restaurants)...... 19,500 278,648
Polypipe (Building Materials).... 70,500 171,038
Save Group (Retailing)........... 8,600 18,068
Shire Pharmaceuticals*
(Drugs and Health Care)....... 5,500 38,655
Tilbury Douglas (Construction
and Property)................. 50,500 242,086
Trifast (Electrical Distribution) 8,000 80,035
Trinity (Media).................. 26,100 211,285
Vanguard Medica Group
(Drugs and Health Care)....... 3,500 18,675
Vanguard Medica Group (Warrants)*
(Drugs and Health Care)....... 500 392
Wellington Holdings
(Manufacturing)............... 9,500 26,533
----------
4,636,048
----------
UNITED STATES -- 42.7%
Aavid Thermal Technologies*
(Technology).................. 700 20,344
AccuStaff*
(Business Services)........... 8,600 268,750
Acuson* (Medical Products
and Technology)............... 3,000 54,563
Acxiom* (Computer Software)...... 4,300 107,634
ADE* (Technology)................ 1,600 23,500
Aerial Communications*
(Communication Services)...... 6,400 39,600
Affiliated Computer Services
(Class A)* (Business
Services)..................... 1,900 73,150
Allied Waste Industries (Industrial
Goods and Services)........... 5,900 141,416
American Capital Strategies*
(Financial Services).......... 2,200 50,188
American Disposal Services*
(Consumer Goods and
Services)..................... 1,600 75,050
American HomePatient* (Drugs
and Health Care).............. 2,800 53,375
SHARES VALUE
-------- ---------
UNITED STATES (continued)
American Homestar*
(Manufacturing)............... 7,200 $ 172,575
American Management Systems*
(Business Services)........... 1,000 29,938
Amkor Technology*
(Technology).................. 1,300 12,147
Analysts International
(Business Services)........... 1,500 42,656
ANTEC*
(Telecommunications).......... 3,900 90,797
Arch Communications Group*
(Telecommunications).......... 3,900 15,234
Asyst Technologies*
(Technology).................. 4,900 61,556
Aurora Foods* (Consumer
Goods and Services)........... 2,400 50,700
Avant!* (Computer Software)...... 4,300 106,291
AVX (Electronics)................ 2,800 44,975
BA Merchant Services (Class A)*
(Business Services)........... 4,900 98,919
Bacou USA* (Industrial Goods
and Services)................. 3,100 65,003
Barnes & Noble* (Retailing)...... 3,200 119,800
BISYS Group*
(Business Services)........... 2,900 118,991
Black Box* (Electrical
Distribution)................. 2,300 76,403
Budget Group* (Consumer
Goods and Services)........... 1,400 44,713
Burr-Brown* (Technology)......... 6,000 126,938
Cabot Industrial Trust*
(Financial Services).......... 1,300 27,788
Cabot Oil & Gas (Technology)..... 2,400 48,000
CalEnergy* (Electric Utilities).. 5,900 177,369
Calpine* (Electric Utilities).... 9,700 195,819
Canandaigua Brands (Class A)*
(Consumer Goods
and Services)................. 2,615 128,625
Carriage Services* (Consumer
Goods and Services)........... 3,500 87,938
Castle Dental Centers*(Drugs
and Health Care).............. 6,000 58,688
CCA Prison Realty Trust
(Constuction and Property).... 3,800 116,375
Celadon Group*
(Transportation).............. 2,100 40,031
Ceridian* (Business Services).... 3,900 229,125
CMP Media (Class A)* (Media)..... 700 12,119
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-24
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
UNITED STATES (continued)
Cognex* (Electronics)............ 5,400 $100,744
Coinmach Laundry* (Consumer
Goods and Services)........... 4,500 106,594
Collaborative Clinical Research*
(Drugs and Health Care)....... 2,900 11,963
Compdent* (Medical Products
and Technology)............... 6,000 93,938
Copart* (Consumer Goods
and Services)................. 2,800 64,488
Corporate Express*
(Retailing)................... 10,500 132,891
Cox Radio (Class A)*
(Media)....................... 4,000 173,000
Credence Systems*
(Technology).................. 5,425 103,245
Crusader Holding*
(Financial Services).......... 700 11,463
Duane Reade* (Retailing)......... 3,000 90,000
Eagle Geophysical* (Energy)...... 1,800 19,013
EduTrek International (Class A)*
(Educational Services)........ 4,000 97,750
Equity International*(Consumer
Goods and Services)........... 3,000 72,000
FactSet Research Systems*
(Business Services)........... 1,200 39,000
FirstService* (Business
Services)..................... 4,100 52,275
Flanders*(Consumer Goods
and Services)................. 4,200 19,950
Freedom Securities*
(Financial Services).......... 300 5,438
Fusion Systems (Rights)*
(Capital Goods)............... 800 50
General Cable
(Manufacturing)............... 1,500 43,313
General Semiconductor*
(Technology).................. 6,200 61,225
Glenayre Technologies*
(Telecommunications).......... 7,200 77,850
Global-Tech Appliances*
(Computer Software)........... 600 8,625
HA-LO Industries*
(Advertising)................. 2,300 71,588
HCC Insurance Holdings
(Financial Services).......... 1,500 33,000
Hearst-Argyle Television (Class A)*
(Media)....................... 3,500 140,438
SHARES VALUE
-------- ---------
UNITED STATES (continued)
HMT Technology*
(Technology).................. 3,100 $ 25,866
Horizon Medical Products* (Medical
Products and Technology)...... 10,000 91,563
Imnet Systems*
(Computer Software)........... 2,200 29,494
Imperial Credit Commercial
Mortgage Investment
(Financial Services).......... 2,400 31,275
Imperial Credit Industries*
(Financial Services).......... 4,700 109,275
Indus International*
(Technology).................. 2,000 23,875
Innovative Valve Technologies*
(Capital Goods)............... 2,200 16,019
Insignia Financial*
(Financial Services).......... 4,400 107,800
Inso* (Computer Software)........ 2,200 30,250
Integrated Device Technology*
(Technology).................. 2,900 20,708
Integrated Electrical Services*
(Electronics)................. 2,400 48,300
Ivex Packaging*
(Capital Goods)............... 3,300 76,725
Jacor Communications*
(Media)....................... 2,900 171,281
Journal Register* (Media)........ 5,400 90,450
Kemet* (Technology).............. 7,800 102,619
Keystone Automotive Industries*
(Distributors)................ 600 13,838
LandCARE USA* (Consumer
Goods and Services)........... 5,300 44,056
Lattice Semiconductor*...........
(Technology).................. 1,000 28,406
MAPICS (Computer Software)....... 5,000 98,594
Marcam Solutions*
(Computer Software)........... 2,500 44,688
Market Facts*
(Business Services)........... 2,300 49,163
McDermott International (Industrial
Goods and Services)........... 2,500 86,094
Medallion Financial
(Financial Services).......... 3,400 92,863
Metamor Worldwide*
(Business Services)........... 2,200 77,481
Microchip Technology*
(Technology).................. 4,000 104,750
Micrografx* (Business Services).. 700 10,019
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-25
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE
-------- ---------
UNITED STATES (continued)
MMI (Financial Services)......... 2,926 $ 67,664
Mutual Risk Management
(Financial Services).......... 3,332 121,410
Nanogen* (Medical Products
and Technology)............... 5,300 34,616
National Instruments*
(Technology).................. 1,000 35,781
NCS HealthCare (Class A)*
(Drugs and Health Care)....... 1,300 37,131
Oak Industries*
(Capital Goods).............. 600 21,225
Ocwen Financial*
(Financial Services).......... 2,300 61,813
OM Group (Chemicals)............. 3,000 123,750
Omnicare (Drugs and
Health Care).................. 1,100 41,938
Personnel Group of America*
(Business Services)........... 8,200 164,000
Petersen Companies (Class A)*
(Media)....................... 3,000 76,875
Physicians' Specialty*(Drugs
and Health Care).............. 10,000 86,250
PMT Services*
(Business Services)........... 7,500 190,781
Polymer Group*
(Manufacturing)............... 2,000 23,250
Premier Parks* (Leisure
and Hotels)................... 800 53,300
Pre-Paid Legal Services*
(Business Services)........... 3,200 101,000
Pride International* (Industrial
Goods and Services)........... 1,400 23,713
Professional Detailing*(Drugs
and Health Care).............. 5,000 122,188
Provant* (Business Services)..... 3,500 64,531
Province Healthcare*(Drugs
and Health Care).............. 4,600 125,206
PSS World Medical* (Drugs
and Health Care).............. 7,400 108,225
PSW Technologies*
(Business Services)........... 4,300 24,322
Quorum Health Group*
(Drugs and Health Care)....... 1,500 39,703
RDO Equipment (Class A)*
(Retailing)................... 5,300 88,775
Renex* (Medical Products
and Technology)............... 9,000 52,313
SHARES VALUE
-------- ---------
UNITED STATES (continued)
Santa Fe Energy Resources*
(Resources)................... 4,900 $ 52,675
Schein Pharmaceutical* (Drugs
and Health Care).............. 1,700 45,263
Sinclair Broadcast Group
(Class A)* (Media)............ 2,800 80,325
Somnus Medical Technologies*
(Medical Products and
Technology)................... 5,000 40,313
Stanford Telecommunications*
(Technology).................. 900 13,416
Steinway Musical Instruments*
(Consumer Goods and
Services)..................... 2,900 93,525
Stirling Cooke Brown Holdings
(Financial Services).......... 400 11,200
Total Renal Care Holdings*
(Drugs and Health Care)....... 6,833 235,739
Triangle Pharmaceuticals*........
(Drugs and Health Care)....... 2,700 39,656
UCAR International*
(Capital Goods)............... 5,800 169,288
Unigraphics Solutions*
(Technology).................. 1,400 19,600
U.S. Foodservice*
(Business Services)........... 5,500 192,844
Valley National Gases*
(Chemicals)................... 6,100 68,625
Vlasic Foods International*
(Consumer Goods and
Services)..................... 2,800 56,350
Waterlink* (Capital Goods)....... 3,300 28,050
Waters* (Medical Products
and Technology)............... 1,600 94,300
Watson Pharmaceuticals* (Medical
Products and Technology)...... 1,900 88,706
Wilmar Industries* (Consumer
Goods and Services)........... 1,900 48,450
Wisconsin Central Transportation*
(Transportation).............. 3,600 78,863
Youth Services*
(Support Services)............ 10,900 80,388
Ziff-Davis* (Publishing)......... 1,800 24,975
----------
10,014,687
----------
TOTAL COMMON STOCKS
(Cost $18,351,347)............ 21,632,793
----------
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-26
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES OR
PRINCIPAL
AMOUNT VALUE
-------- ---------
PREFERRED STOCKS -- 0.5%
(Cost $148,363)
GERMANY -- 0.5%
Gerry Weber International*
(Manufacturing)............ 4,993 shs. $ 109,636
----------
SUBORDINATED
CONVERTIBLE BONDS -- 0.2%
FRANCE -- 0.1%
L'Europeenne d'Extincteurs 4-1/4%,
1/1/2005 (Manufacturing)... $24,600 21,836
JAPAN -- 0.1%
Gunma Bank 0.45%, 9/28/2001
(Financial Services)....... 4,000,000** 30,038
----------
TOTAL SUBORDINATED CONVERTIBLE
BONDS (Cost $51,054)....... 51,874
----------
PRINCIPAL
AMOUNT VALUE
-------- ---------
FIXED TIME DEPOSITS -- 5.1%
Canadian Imperial Bank of Commerce,
Grand Cayman 5-3/4%,
dated 6/30/1998,
maturing 7/2/1998............. $900,000 $ 900,000
First National Bank of Chicago,
Grand Cayman 5.40%,
dated 6/30/1998,
maturing 7/2/1998............. 300,000 300,000
----------
TOTAL FIXED TIME DEPOSITS
(Cost $1,200,000)............. 1,200,000
----------
TOTAL INVESTMENTS -- 98.1%
(Cost $19,750,764)............ 22,994,303
OTHER ASSETS LESS
LIABILITIES-- 1.9%............ 447,354
-----------
NET ASSETS-- 100.0%.............. $23,441,657
-----------
-----------
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO
SHARES VALUE
-------- ---------
COMMON STOCKS -- 89.4%
BRAZIL -- 1.0%
Telecomunicacoes Brasileiras
"Telebras" (ADRs)
(Telecommunications).......... 500 $ 54,594
----------
CANADA -- 0.4%
PMC-Sierra*
(Semiconductors).............. 500 23,406
----------
DENMARK -- 0.8%
NeuroSearch*
(Miscellaneous)............... 580 44,807
----------
FINLAND -- 1.9%
Nokia (Series A)
(Telecommunications).......... 1,400 102,776
----------
FRANCE -- 4.3%
Alcatel (Telecommunications)..... 300 60,932
Cap Gemini*
(Computer Software)........... 377 59,092
Genset (ADRs)* (Medical
Products and Technology)...... 1,500 44,109
Rhone Poulenc (Medical
Products and Technology)...... 1,200 67,515
----------
231,648
----------
SHARES VALUE
-------- ---------
GERMANY -- 1.7%
Mannesmann (Electronics
Capital Equipment)............ 900 $ 91,145
----------
HONG KONG -- 0.5%
Elec & Eltek International
Holdings (Electronics)........ 150,000 28,656
----------
HUNGARY -- 0.5%
Richter Gedeon (GDRs) (Medical
Products and Technology)...... 350 28,000
----------
INDIA -- 0.2%
Videsh Sanchar Nigam (GDRs)*+
(Telecommunications)......... 1,000 10,425
----------
ISRAEL -- 4.4%
Check Point Software Technologies*
(Computer Software)........... 1,000 32,750
ECI Telecommunications
(Networking/Communications
Infrastructure)............... 3,000 113,625
Orbotech* (Electronics).......... 1,500 54,422
Tecnomatix Technologies*
(Computer Software)........... 1,700 34,053
----------
234,850
----------
- -------------
* Non-income producing security.
** Principal amount reported in Japanese yen.
+ Rule 144A security.
See Notes to Financial Statements.
P-27
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued) June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE
----------- -----------
ITALY -- 1.3%
Telecom Italia
(Telecommunications).......... 9,500 $ 69,806
-----------
JAPAN -- 2.7%
CSK (Computer and
Business Services)............ 1,000 19,834
Hirose Electronics
(Electronics)................. 400 19,460
NEC (Networking/Communications
Infrastructure)............... 5,000 46,459
Secom (Computer and
Business Services)............ 1,000 57,562
-----------
143,315
-----------
LUXEMBOURG -- 0.7%
Scandinavian Broadcasting System*
(Media)....................... 1,200 36,113
-----------
NETHERLANDS -- 3.2%
CMG* (Computer Software)......... 5,400 169,500
-----------
NORWAY -- 2.9%
Merkantildata
(Computer Software)........... 9,000 113,879
Provida* (Computer Software)..... 2,000 38,351
-----------
152,230
-----------
SINGAPORE -- 3.1%
Creative Technology* (Computer
Hardware/Peripherals)......... 5,500 68,234
Flextronics International*
(Electronics)................. 1,000 43,469
Informatics Holdings
(Computer Software)........... 70,000 15,979
Venture Manufacturing
(Electronics)................. 20,000 37,946
-----------
165,628
-----------
SOUTH KOREA -- 0.1%
SK Telecommunications Group
(ADRs) (Telecommunications) 438 2,436
-----------
SWEDEN -- 3.2%
L.M. Ericsson Telefon (Series B)
(Networking/Communications
Infrastructure)............... 2,900 84,494
Information Highway* (Computer
and Business Services)........ 2,000 43,766
SHARES VALUE
----------- -----------
SWEDEN (continued)
Pharmacia & Upjohn (Medical
Products and Technology)...... 920 $ 42,221
-----------
170,481
-----------
SWITZERLAND -- 1.6%
Novartis
(Medical Products and
Technology)................... 50 83,054
-----------
TAIWAN -- 1.4%
Siliconeware Precision Industries
(GDRs)* (Electronics Capital
Equipment).................... 5,024 40,192
Taiwan Semiconductor
Manufacturing (ADRs)*
(Semiconductors).............. 2,000 33,750
-----------
73,942
-----------
UNITED KINGDOM -- 19.5%
Abacus Polar (Distributors)...... 8,500 13,181
Admiral (Computer and
Business Services)............ 5,320 113,765
Astec (Computer Hardware/
Peripherals).................. 12,600 17,123
BTG (Computer and
Business Services)............ 3,600 50,122
Cable & Wireless
(Telecommunications).......... 6,000 72,982
Celltech* (Medical Products
and Technology)............... 9,400 48,980
COLT Telecom Group*
(Telecommunications).......... 2,500 100,148
General Electric (Electronics)... 8,700 74,925
Isotron (Medical Products
and Technology)............... 5,000 46,270
Logica (Computer and
Business Services)............ 2,690 86,903
M.M.T. Computing (Computer
and Business Services)........ 4,500 91,915
Misys (Computer Software)........ 1,100 62,526
Premier Farnell (Distributors)... 3,500 17,799
Psion (Computer Hardware/
Peripherals).................. 11,600 125,722
RM (Networking/Communication
Infrastructure)............... 10,000 61,694
Spring Group (Computer
and Business Services)........ 8,700 60,419
-----------
1,044,474
-----------
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-28
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE
----------- -----------
UNITED STATES -- 34.0%
3DO* (Computer Software)......... 3,800 $ 12,172
Activision*
(Computer Software)........... 1,000 10,344
American Power Conversion*
(Computer Hardware/
Peripherals).................. 1,400 41,825
Aspect Telecommunications*
(Networking/Communications
Infrastructure)............... 1,000 27,438
Autodesk (Computer Software)..... 500 19,266
Cadence Design System*
(Computer Software)........... 2,000 62,500
CMP Media (Class A)* (Media)..... 4,200 72,713
Cognex* (Electronics
Capital Equipment)............ 2,000 37,312
Credence Systems* (Electronics
Capital Equipment)............ 1,400 26,644
Electro Scientific Industries*
(Electronics Capital
Equipment).................... 1,200 37,988
Electronic Arts*
(Computer Software)........... 1,800 97,312
Electronics for Imaging*
(Electronics)................. 2,500 52,656
EMC* (Computer Hardware/
Peripherals).................. 3,300 147,881
Etec Systems* (Electronics
Capital Equipment)............ 1,050 36,980
Gartner Group (Class A)*
(Computer and Business
Services)..................... 1,800 62,944
Genesys Telecommunications
Laboratories*
(Computer Software)........... 1,300 43,022
Hadco* (Electronics)............. 400 9,325
HNC Software*
(Computer Software)........... 1,400 57,181
In Focus Systems* (Computer
Hardware/Peripherals)......... 1,300 9,222
KLA-Tencor* (Electronics
Capital Equipment)............ 1,300 36,034
Kulicke & Soffa Industries*
(Electronics Capital
Equipment).................... 2,500 42,344
Lattice Semiconductor*
(Semiconductors).............. 1,000 28,406
Lexmark International Group
(Class A)* (Computer
Hardware/Peripherals)......... 1,400 85,400
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
UNITED STATES (continued)
Maxim Integrated Products*
(Semiconductors)............. 2,400 shs. $ 76,125
Microchip Technology*
(Semiconductors)............. 2,000 52,375
NeoMagic* (Computer
Hardware/Peripherals)........ 1,500 23,203
Network Associates*
(Computer Software).......... 1,849 88,463
Novellus Systems* (Electronics
Capital Equipment)........... 2,300 82,153
Parametric Technology*
(Computer Software).......... 1,700 46,059
REMEC* (Networking/
Communications
Infrastructure).............. 900 10,378
Sawtek* (Electronics)........... 1,100 16,053
Storage Technology* (Computer
Hardware/Peripherals)........ 1,400 60,725
Structural Dynamics Research*
(Computer Software).......... 4,200 96,731
Synopsys* (Computer
Software).................... 2,547 116,605
Teradyne* (Electronics Capital
Equipment)................... 2,000 53,500
Veeco Instruments (Electronics
Capital Equipment)........... 1,500 37,313
-----------
1,816,592
-----------
TOTAL COMMON STOCKS
(Cost $4,275,384)............ 4,777,878
-----------
FIXED TIME DEPOSITS -- 6.5%.....
Canadian Imperial Bank of
Commerce, Grand Cayman
5-3/4%, dated 6/30/1998,
maturing 7/2/1998............ $150,000 150,000
First National Bank of Chicago,
Grand Cayman 5.40%,
dated 6/30/1998,
maturing 7/2/1998............ 200,000 200,000
-----------
TOTAL FIXED TIME DEPOSITS
(Cost $350,000).............. 350,000
-----------
TOTAL INVESTMENTS -- 95.9%
(Cost $4,625,384)............ 5,127,878
OTHER ASSETS LESS
LIABILITIES-- 4.1%........... 217,421
-----------
NET ASSETS-- 100.0%............. $ 5,345,299
-----------
-----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-29
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 95.7%
AUSTRALIA -- 0.9%
Colonial (Financial Services).... 14,000 $ 42,290
Colonial (Rights)*
(Financial Services).......... 2,800 646
Rio Tinto (Metals)............... 400 4,754
Telstra* (Telecommunications) 2,400 6,150
Westpac Banking (Banking)........ 7,000 42,680
-----------
96,520
-----------
BRAZIL -- 2.0%
Companhia Energetica de
Minas Gerais "CEMIG"
(ADRs) (Utilities)............ 1,347 40,578
Companhia Paranaense de
Energia "Copel" (ADRs)
(Utilities)................... 4,000 37,000
Petroleo Brasileiro "Petrobras"
(ADRs) (Resources)............ 2,925 54,372
Telecomunicacoes Brasileiras
"Telebras"(ADRs)
(Telecommunications).......... 730 79,707
-----------
211,657
-----------
DENMARK -- 0.9%
Tele Danmark (Series B)*
(Telecommunications).......... 1,009 96,702
-----------
FRANCE --14.1%
Accor (Leisure and Hotels)....... 664 185,367
Alcatel (Telecommunications)..... 836 169,796
Alstom* (Manufacturing).......... 3,005 98,664
AXA-UAP (Insurance).............. 1,739 195,106
Carrefour Supermarche
(Retailing)................... 204 128,743
ELF Aquitaine (Resources)........ 1,145 160,578
Etam Developpement*
(Retailing)................... 945 73,281
Lafarge (Construction and
Property)..................... 1,738 179,223
Rhodia* (Chemicals).............. 841 23,395
Schneider (Electronics).......... 1,408 111,996
Vivendi (Industrial Goods
and Services)................. 905 192,769
-----------
1,518,918
-----------
GERMANY -- 10.8%
Adidas-Salomon (Retailing)....... 766 132,186
Bayer (Chemicals)................ 2,799 144,130
Bayerische Motoren Werke
"BMW" (Manufacturing)......... 119 119,856
SHARES VALUE
----------- -----------
GERMANY (continued)
Bayerische Motoren Werke
"BMW"* (Manufacturing)........ 34 $ 33,755
Bayerische Vereinsbank
(Banking)..................... 2,136 181,347
Deutsche Bank (Banking).......... 1,721 145,495
Lufthansa (Transportation)....... 6,388 160,053
Mannesmann (Industrial Goods
and Services)................. 2,410 244,066
-----------
1,160,888
-----------
GREECE -- 1.4%
Hellenic Telecommunications
Organization
(Telecommunications).......... 4,111 105,244
National Bank of Greece
(Banking)..................... 1,600 41,120
-----------
146,364
-----------
HONG KONG -- 0.2%
Citic Pacific (Miscellaneous).... 2,000 3,537
Hutchison Whampoa
(Industrial Goods and
Services)..................... 2,000 10,559
Television Broadcasts
(Media)....................... 3,000 7,939
-----------
22,035
-----------
HUNGARY -- 2.2%
Magyar Tavkozlesi "Matav"
(ADRs)
(Telecommunications).......... 4,100 120,694
MOL Magyar Olaj-es Gazipari
(GDRs)*+ (Resources).......... 4,400 118,580
-----------
239,274
-----------
IRELAND -- 0.8%
Bank of Ireland (Banking)........ 4,000 82,236
-----------
ITALY -- 5.3%
Banca Popolare di Bresci
(Banking)..................... 6,936 130,872
ENI (Resources).................. 20,858 136,457
Istituto Nazionale delle
Assicurazioni (Insurance)..... 4,568 148,269
Telecom Italia
(Telecommunications).......... 32,408 156,603
-----------
572,201
-----------
- ----------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
P-30
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued)
SHARES VALUE
----------- -----------
JAPAN -- 9.6%
Aoyama Trading (Retailing)....... 500 $ 12,288
Bank of Tokyo-Mitsubishi
(Financial Services).......... 3,000 31,670
Banyu Pharmaceutical
(Health and Household)........ 1,000 10,779
Benesse (Business Services)...... 500 17,427
Canon (Business Services)........ 1,000 22,637
CSK (Business Services).......... 1,000 19,834
Dai Nippon Printing (Industrial
Goods and Services)........... 2,000 31,835
Daiwa Securities (Financial
Services)..................... 9,000 38,612
Denny's (Restaurants)............ 1,000 24,793
East Japan Railway
(Transportation).............. 6 28,113
Fujitsu Business Systems
(Business Services)........... 600 8,192
Ishikawajima-Harima (Industrial
Goods and Services)........... 16,000 29,090
Japan Airport Terminal
(Transportation).............. 1,000 5,533
Japan Tobacco (Tobacco).......... 4 26,991
KAO (Consumer Products).......... 2,000 30,757
Kirin Brewery (Consumer
Products)..................... 3,000 28,242
Mitsui* (Distributors)........... 50,000 269,484
Mitsui Chemicals (Chemicals)..... 13,000 36,808
Nippon Telegraph & Telephone
(Telecommunications).......... 4 33,057
Nitto Denko (Industrial Goods
and Services)................. 2,000 29,967
Pioneer Electronic
(Electronics)................. 3,000 57,131
Shohkoh Fund (Financial
Services)..................... 100 24,505
Sumitomo Bank (Banking).......... 3,000 29,104
Sumitomo Realty & Development
(Construction and Property)... 7,000 30,786
Sumitomo Trust and Banking
(Banking)..................... 4,000 17,822
Takefuji (Financial Services).... 600 27,595
Toho (Media)..................... 100 10,492
Toshiba (Electronics)............ 11,000 44,820
Tsubaki Nakashima
(Manufacturing)............... 3,000 16,320
Yamaha (Manufacturing)........... 3,000 29,104
SHARES VALUE
----------- -----------
JAPAN (continued)
York-Benimaru (Retailing)........ 700 $ 13,129
-----------
1,036,917
-----------
MEXICO -- 0.9%
Grupo Iusacell (ADRs)*
(Telecommunications).......... 2,220 30,525
Panamerican Beverages
(Class A) (Consumer
Products)..................... 2,200 69,162
-----------
99,687
-----------
NETHERLANDS -- 7.2%
Akzo Nobel (Chemicals)........... 594 131,783
Benckiser (Series B)*
(Consumer Products)........... 3,308 203,032
ING Groep (Insurance)............ 3,175 207,487
Philips Electronics (Electronics) 1,544 129,535
Vedior* (Miscellaneous).......... 1,541 43,472
Vendex International
(Retailing).................. 1,562 59,928
-----------
775,237
-----------
PHILIPPINES -- 0.1%
Philippine Long Distance
Telephone
(Telecommunications).......... 200 4,556
-----------
PORTUGAL -- 1.1%
Electricidade de Portugal
(Utilities)................... 4,966 115,209
-----------
RUSSIA -- 0.6%
Lukoil Holding (ADRs)
(Resources)................... 760 25,407
Tatneft (ADRs) (Resources)....... 5,300 41,075
-----------
66,482
-----------
SOUTH KOREA -- 0.6%
Samsung Electronics
(Electronics)................. 1,950 60,360
-----------
SPAIN -- 4.9%
Actividades de Construccion y
Servicios (Construction and
Property)..................... 3,591 107,744
- --------------
* Non-income producing security.
See Notes to Financial Statements.
P-31
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued)
SHARES VALUE
----------- -----------
SPAIN (continued)
Banco Bilbao Vizcaya
(Banking)..................... 3,042 $ 155,985
Centros Comerciales
Continente (Retailing)........ 3,803 86,725
Endesa (Utilities)............... 615 13,444
Telefonica de Espana
(Telecommunications).......... 3,403 157,201
-----------
521,099
-----------
SWEDEN -- 4.5%
Astra (Class A) (Health and
Household).................... 7,217 147,102
L.M. Ericsson Telefon (Series B)
(Telecommunications).......... 6,201 180,672
Nordbanken Holding (Banking) 21,318 155,946
-----------
483,720
-----------
SWITZERLAND -- 7.5%
CS Holdings (Banking)............ 846 187,907
Nestle (Consumer Products)....... 69 147,400
Novartis (Health and
Household).................... 84 139,530
UBS* (Banking)................... 398 147,728
Zurich Versicherung (Insurance).. 292 186,019
-----------
808,584
-----------
TAIWAN -- 0.2%
The ROC Taiwan Fund
(Miscellaneous)............... 1,200 8,100
Taiwan Opportunities Fund*
(Miscellaneous)............... 1,000 13,160
-----------
21,260
-----------
UNITED KINGDOM -- 19.9%
Associated British Ports
Holdings (Transportation)..... 14,500 80,752
B.A.T. Industries (Tobacco)...... 17,000 169,650
SHARES VALUE
----------- -----------
UNITED KINGDOM (continued)
British Biotech (Health and
Household).................... 26,500 $ 16,238
British Petroleum (Resources).... 9,500 138,207
Bunzl (Manufacturing)............ 23,000 108,148
Caradon (Building Materials)..... 16,200 50,242
FKI Babcock (Industrial Goods
and Services)................. 27,000 78,560
Granada Group (Leisure and
Hotels)....................... 10,500 193,285
The Great Universal Stores
(Retailing)................... 4,400 57,995
Kingfisher (Retailing)........... 4,500 72,857
Laporte (Chemicals).............. 7,000 83,745
Lloyd TSB (Banking).............. 7,500 104,671
National Power (Utilities)....... 13,500 126,956
Railtrack Group (Transportation). 7,699 189,094
Rolls Royce (Industrial Goods
and Services)................. 17,600 72,705
Royal Bank of Scotland
(Banking)..................... 8,500 147,256
Tesco (Retailing)................ 16,500 160,808
United Utilities (Utilities)..... 9,000 131,233
WPP Group (Media)................ 24,000 157,869
-----------
2,140,271
-----------
TOTAL COMMON STOCKS
(Cost $8,303,326)............. 10,280,177
SHORT-TERM HOLDINGS -- 2.8%
(Cost $300,000)............... 300,000
-----------
TOTAL INVESTMENTS -- 98.5%
(Cost $8,603,326)............. 10,580,177
OTHER ASSETS LESS
LIABILITIES-- 1.5%............ 166,089
-----------
NET ASSETS-- 100.0% $10,746,266
-----------
-----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-32
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
PRINCIPAL
AMOUNT VALUE
----------- -----------
CORPORATE BONDS -- 87.9%
ADVERTISING -- 0.4%
Adams Outdoor Advertising
10-3/4%, 3/15/2006............. $ 125,000 $ 137,187
-----------
AUTOMOTIVE AND RELATED -- 0.6%
Diamond Triumph Automotive
9-1/4%, 4/1/2008+.............. 175,000 178,937
-----------
BROADCASTING -- 1.8%
Capstar Broadcasting Partners 0%
(12-3/4%**), 2/1/2009.......... 200,000 153,500
Cumulus Media 10-3/8%,
7/1/2008....................... 70,000 71,400
Paxson Communications 11-5/8%,
10/1/2002...................... 175,000 188,563
SFX Broadcasting 10-3/4%,
5/15/2006...................... 132,000 146,520
-----------
559,983
-----------
CABLE SYSTEMS AND
SATELLITE VIDEO-- 8.8%
Charter Communications
Southeast Holdings 11-1/4%,
3/15/2006..................... 250,000 276,875
Charter Communications
Southeast Holdings 0%
(14%**), 3/15/2007............ 325,000 268,937
CSC Holdings 10-1/2%,
5/15/2016..................... 175,000 205,187
Digital Television Services
12-1/2%, 8/1/2007.............. 200,000 229,000
EchoStar DBS 12-1/2%,
7/1/2002...................... 350,000 391,125
Intermedia Capital Partners IV,
11-1/4%, 8/1/2006+............. 425,000 484,500
Northland Cable Television
10-1/4%, 11/15/2007............ 200,000 214,500
Rogers Cablesystems 11%,
12/1/2015..................... 270,000 313,875
TCI Satellite Entertainment
10-7/8%, 2/15/2007............ 350,000 350,000
-----------
2,733,999
-----------
CELLULAR -- 2.0%
American Cellular 10-1/2%,
5/15/2008+.................... 150,000 150,375
PRINCIPAL
AMOUNT VALUE
----------- -----------
CELLULAR (continued)
Centennial Cellular 10-1/8%,
5/15/2005..................... $ 125,000 $ 140,625
Price Communications Wireless
11-3/4%, 7/15/2007............. 300,000 331,500
-----------
622,500
-----------
CHEMICALS -- 1.0%
Koppers Industries 9-7/8%
12/1/2007..................... 45,000 46,350
Marsulex 9-5/8%, 7/1/2008+........ 30,000 30,637
Texas Petrochemicals 11-1/8%,
7/1/2006...................... 200,000 218,000
-----------
294,987
-----------
COMPUTER AND RELATED
SERVICES -- 3.1%
DecisionOne 9-3/4%, 8/1/2007...... 250,000 242,500
DecisionOne Holdings 0%
(11-1/2%**), 8/1/2008.......... 220,000 134,200
Unisys 12%, 4/15/2003............ 250,000 283,125
Unisys 11-3/4%, 10/15/2004........ 250,000 289,688
-----------
949,513
-----------
CONSUMER PRODUCTS -- 6.6%
AKI 10-1/2%, 7/1/2008+............ 45,000 45,450
AKI Holding 0% (13-1/2%**),
7/1/2009+..................... 45,000 23,850
American Pad & Paper 13%
11/15/2005.................... 110,000 111,650
Amscan Holdings 9-7/8%,
12/15/2007.................... 200,000 203,000
Anchor Advanced Products
11-3/4%, 4/1/2004.............. 225,000 248,625
Carson 10-3/8%,11/1/2007.......... 150,000 154,875
Diamond Brands 0% (12-7/8%**),
4/15/2009+.................... 175,000 94,500
Diamond Brands Operating
10-1/8%, 4/15/2008+............ 150,000 151,125
French Fragrances 10-3/8%,
5/15/2007..................... 220,000 236,500
Global Health Sciences 11%,
5/1/2008+..................... 275,000 272,937
Iron Age 9-7/8%, 5/1/2008+........ 150,000 149,250
Iron Age Holdings 0% (12-1/8%**),
5/1/2009+..................... 80,000 45,200
Moll Industries 10-1/2%, 7/1/2008+ 125,000 128,125
- --------------
+Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
P-33
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL
AMOUNT VALUE
----------- -----------
CONSUMER PRODUCTS
(continued)
Ryder TRS 10%, 12/1/2006......... $ 150,000 $ 174,000
-----------
2,039,087
-----------
CONTAINERS -- 0.7%
U.S. Can 10-1/8%, 10/15/2006...... 215,000 227,900
-----------
ENERGY -- 1.1%
Abraxas Petroleum 11-1/2%,
11/1/2004..................... 150,000 155,625
Gothic Production 11-1/8%,
5/1/2005+..................... 35,000 33,687
Universal Compression
0% (9-7/8%**), 2/15/2008+...... 95,000 60,325
Universal Compression Holdings
0% (11-3/8%**), 2/15/2009+..... 140,000 83,300
-----------
332,937
-----------
EQUIPMENT -- 1.3%
Neff 10-1/4%, 6/1/2008+........... 85,000 85,850
Williams Scotsman 9-7/8%,
6/1/2007...................... 300,000 313,500
-----------
399,350
-----------
FINANCIAL SERVICES -- 2.3%........
AMRESCO 10%, 3/15/2004........... 210,000 216,825
Dollar Financial Group, 10-7/8%,
11/15/2006.................... 150,000 162,000
Ocwen Capital Trust I, 10-7/8%,
8/1/2027...................... 150,000 164,250
Veritas Capital Trust 10%,
1/1/2028...................... 150,000 157,875
-----------
700,950
-----------
FOOD -- 3.1%
AFC Enterprises 10-1/4%,
5/15/2007...................... 200,000 213,000
AmeriKing 10-3/4%, 12/1/2006...... 150,000 161,250
AmeriServe Food Distributors
10-1/8%, 7/15/2007............. 275,000 284,625
Gorges/Quik-to-Fix Foods
11-1/2%, 12/1/2006............. 100,000 99,500
Packaged Ice 9-3/4%, 2/1/2005+.... 200,000 204,000
-----------
962,375
-----------
GAMING/HOTEL -- 8.1%
Alliance Gaming 10%,
8/1/2007+..................... 125,000 125,312
PRINCIPAL
AMOUNT VALUE
----------- -----------
GAMING/HOTEL (continued)
Ameristar Casinos 10-1/2%,
8/1/2004...................... $ 250,000 $ 261,250
Aztar 13-3/4%, 10/1/2004.......... 100,000 114,000
Casino America 12-1/2%,
8/1/2003...................... 450,000 510,750
Casino Magic of Louisiana 13%,
8/15/2003..................... 150,000 173,250
Coast Hotels & Casinos 13%,
12/15/2002.................... 250,000 287,500
Fitzgeralds Gaming 12-1/4%,
12/15/2004.................... 150,000 147,750
Showboat Marina Casino
Partnership 13-1/2%,
3/15/2003..................... 150,000 174,750
Trump Atlantic City Funding
11-1/4%, 5/1/2006.............. 450,000 438,750
Trump Hotels & Casino Resorts
Funding 15-1/2%, 6/15/2005..... 250,000 282,500
-----------
2,515,812
-----------
HEALTH CARE/MEDICAL
PRODUCTS -- 5.1%
Alaris Medical 9-3/4%, 12/1/2006.. 225,000 231,750
Alliance Imaging 9-5/8%,
12/15/2005.................... 150,000 152,250
Dade International 11-1/8%,
5/1/2006...................... 250,000 280,000
Everest Healthcare Services
9-3/4%, 5/1/2008+.............. 200,000 205,500
Graphic Controls 12%,
9/15/2005..................... 175,000 195,125
Paracelsus Healthcare 10%,
8/15/2006..................... 250,000 249,375
Pediatric Services of America
10%, 4/15/2008................ 100,000 99,500
Sun Healthcare Group 9-1/2%,
7/1/2007...................... 150,000 153,000
-----------
1,566,500
-----------
INDUSTRIAL/
MANUFACTURING -- 3.2%
Airxcel 11%, 11/15/2007.......... 200,000 210,500
Alliance Laundry Systems
9-5/8%, 5/1/2008+.............. 100,000 100,750
BPC Holding 12-1/2%, 6/15/2006.... 150,000 165,000
Coyne International Enterprises
11-1/4%, 6/1/2008+............. 130,000 130,975
- --------------
+ 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-34
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL
AMOUNT VALUE
----------- -----------
INDUSTRIAL/
MANUFACTURING (continued)
Day International Group 9-1/2%,
3/15/2008..................... $ 150,000 $ 150,750
Great Lakes Acquisition 0%
(13-1/8%**), 5/15/2009+........ 60,000 33,000
Great Lakes Carbon 10-1/4%,
5/15/2008+.................... 200,000 205,000
-----------
995,975
-----------
LEISURE-- 2.5%
Affinity Group Holding
11%, 4/1/2007................. 250,000 268,750
AMF Bowling Worldwide 0%
(12-1/4%**), 3/15/2006......... 175,000 141,531
Premier Parks 12%, 8/15/2003..... 100,000 111,500
Premier Parks 9-1/4%, 4/1/2006.... 125,000 129,688
Premier Parks 0% (10%**),
4/1/2008...................... 175,000 117,031
-----------
768,500
-----------
METALS -- 1.2%
Renco Metals 11-1/2%, 7/1/2003.... 175,000 188,125
Royal Oak Mines 11%,
8/15/2006..................... 225,000 190,125
-----------
378,250
-----------
PAGING -- 4.6%
Metrocall 9-3/4%, 11/1/2007....... 300,000 306,000
Mobile Telecommunication
Technologies 13-1/2%,
12/15/2002.................... 225,000 259,875
Paging Network 10%,
10/15/2008.................... 600,000 624,000
ProNet 11-7/8%, 6/15/2005......... 225,000 246,375
-----------
1,436,250
-----------
PAPER AND PACKAGING -- 0.8%.......
Crown Paper 11%, 9/1/2005........ 200,000 217,500
Graham Packaging 0%
(10-3/4%**),1/15/2009+......... 55,000 34,650
-----------
252,150
-----------
PRINTING AND
PUBLISHING -- 4.5%
Advanstar Communications 9-1/4%,
5/1/2008+..................... 225,000 227,531
PRINCIPAL
AMOUNT VALUE
----------- -----------
PRINTING AND
PUBLISHING (continued)
American Lawyer Media 9-3/4%,
12/15/2007.................... $ 200,000 $ 208,000
American Lawyer Media Holdings
0% (12-1/4%**), 12/15/2008..... 45,000 28,856
Liberty Group Publishing 9-3/8%,
2/1/2008...................... 125,000 126,875
Liberty Group Publishing 0%
(11-5/8%**), 2/1/2009.......... 175,000 105,875
NBC Acquisition 0% (10-3/4%**),
2/15/2009..................... 300,000 174,000
Perry-Judd 10-5/8%, 12/15/2007.... 100,000 105,500
Regional Independent Media
Group 10-1/2%, 7/1/2008+....... 130,000 132,600
TransWestern Holdings 0%
(11-7/8%**), 11/15/2008........ 250,000 165,000
Von Hoffman Press 10-3/8%,
5/15/2007+.................... 110,000 116,050
Von Hoffman Press 10-7/8%,
5/15/2007+.................... 15,000 15,769
-----------
1,406,056
-----------
RECORD STORAGE -- 0.3%
Pierce Leahy 11-1/8%, 7/15/2006... 75,000 84,188
-----------
RETAILING -- 2.8%
Central Tractor 10-5/8%,
4/1/2007...................... 200,000 213,000
Cole National Group 9-7/8%,
12/31/2006.................... 150,000 162,750
Frank's Nursery & Crafts 10-1/4%,
3/1/2008+..................... 100,000 101,500
Musicland Group 9-7/8%,
3/15/2008..................... 175,000 172,813
SpinCycle 0% (12-3/4%**),
5/1/2005+..................... 35,000 25,025
TM Group Holdings 11%,
5/15/2008+.................... 175,000 180,031
-----------
855,119
-----------
SUPERMARKETS -- 2.2%
Jitney-Jungle Stores of America
12%, 3/1/2006................. 225,000 254,813
Jitney-Jungle Stores of America
10-3/8%, 9/15/2007............. 250,000 268,125
- --------------
+ 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-35
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL
AMOUNT VALUE
----------- -----------
SUPERMARKETS (continued)
Pathmark Stores 11-5/8%,
6/15/2002....................... $ 150,000 $ 151,875
-----------
674,813
-----------
TECHNOLOGY -- 3.2%
Advanced Micro Devices 11%,
8/1/2003......................... 250,000 264,375
Hadco 9-1/2%, 6/15/2008+............ 125,000 125,000
MCMS 9-3/4%, 3/1/2008............... 175,000 162,750
Therma-Wave 10-5/8%, 5/15/2004...... 150,000 135,750
Viasystems 9-3/4%, 6/1/2007......... 300,000 297,750
-----------
985,625
-----------
TELECOMMUNICATIONS -- 13.8%
BTI Telecom 10-1/2%, 9/15/2007...... 250,000 251,250
Crown Castle International 0%
(10-5/8%**),11/15/2007........... 200,000 137,500
Exodus Communications 11-1/4%,
7/1/2008+........................ 55,000 55,412
Facilicom International 10-1/2%,
1/15/2008........................ 325,000 321,750
GCI 9-3/4%, 8/1/2007................ 150,000 158,250
GlobalStar 11-1/4%, 6/15/2004....... 225,000 219,375
ICG Holdings 0% (11-5/8%**),
3/15/2007........................ 125,000 88,125
ITC DeltaCom 11%, 6/1/2007.......... 100,000 113,250
IXC Communications 9%
4/15/2008........................ 90,000 90,675
Level 3 Communications 9-1/8%,
5/1/2008......................... 180,000 176,175
MJD Communications 9-1/2%,
5/1/2008+........................ 70,000 71,750
Nextel Communications 0%
(10.65%**), 9/15/2007............ 250,000 169,375
NEXTLINK Communications
12-1/2%, 4/15/2006............... 400,000 456,000
Pinnacle Holdings 0% (10%**),
3/15/2008........................ 550,000 363,000
Powertel 11-1/8%, 6/1/2007.......... 275,000 290,813
PSINet 10%, 2/15/2005............... 250,000 256,250
RCN 10%, 10/15/2007................. 190,000 196,175
Sprint Spectrum 11%, 8/15/2006...... 200,000 231,500
Talton Holdings 11%, 6/30/2007...... 200,000 216,000
Verio 13-1/2%, 6/15/2004+........... 50,000 57,500
Verio (units) 13-1/2%, 6/15/2004+. 100 142,000
Verio 10-3/8%, 4/1/2005+............ 125,000 129,063
PRINCIPAL
AMOUNT
OR SHARES VALUE
----------- -----------
TELECOMMUNICATIONS (continued)
Viatel (units) 11-1/4%, 4/15/2008+.. 70 $ 73,500
-----------
4,264,688
-----------
TEXTILES -- 0.4%
Tropical Sportswear
Int'l 11%, 6/15/2008+........... $ 125,000 126,563
-----------
THEATERS -- 1.2%
Clearview Cinema Group 10-7/8%,
6/1/2008+....................... 125,000 127,813
Hollywood Theaters 10-5/8%,
8/1/2007........................ 250,000 260,000
-----------
387,813
-----------
TRANSPORTATION -- 0.7%
Atlas Air 10-3/4%, 8/1/2005......... 200,000 213,000
-----------
UTILITIES -- 0.5%...................
Midland Cogeneration Venture
11-3/4%, 7/23/2005............... 125,000 150,346
-----------
TOTAL CORPORATE BONDS
(Cost $26,457,575).............. 27,201,353
-----------
PREFERRED STOCKS -- 6.8%
BROADCASTING -- 1.3%
Capstar Broadcasting
Partners 12%..................... 923 shs. 109,145
Cumulus Media 13-3/4%............... 40 41,100
SFX Broadcasting 12-3/4%............ 797 90,260
Sinclair Capital 11-5/8%............ 1,500 166,635
-----------
407,140
-----------
CABLE SYSTEMS AND
SATELLITE VIDEO -- 0.7%
Pegasus Communications
12-3/4% (Series A)............... 128 144,534
Pegasus Communications
(units) 12-3/4%.................. 50 58,125
-----------
202,659
-----------
CELLULAR -- 0.5%
Rural Cellular 11-3/8%+............. 165 165,825
-----------
FOOD -- 0.9%
Nebco Evans Holding 11-1/4%......... 2,566 262,409
-----------
- ---------------
+ 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-36
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
SHARES VALUE
----------- -----------
HEALTH CARE/MEDICAL
PRODUCTS -- 0.4%
River Holding 11-1/2%+.............. 1,250 $ 127,188
-----------
INDUSTRIAL/
MANUFACTURING -- 0.3%
Day International Group 12-1/4%..... 100 101,750
-----------
PRINTING AND
PUBLISHING -- 0.8%
Liberty Group Publishing 14-3/4%+... 8,869 232,799
-----------
TECHNOLOGY -- 0.3%
MCMS 12-1/2%........................ 1,125 107,156
-----------
TELECOMMUNICATIONS -- 1.6%
IXC Communications 12-1/2%
(Series B)....................... 131 152,085
Nextel Communications 11-1/8%+...... 255 263,288
NEXTLINK Communications 14%......... 1,483 87,126
-----------
502,499
-----------
SHARES VALUE
----------- -----------
TOTAL PREFERRED STOCKS
(Cost $2,020,846).............. $ 2,109,425
-----------
CONVERTIBLE PREFERRED
STOCKS -- 0.6%
BROADCASTING -- 0.4%
Chancellor Media $3+.............. 1,250 128,438
-----------
TELECOMMUNICATIONS -- 0.2%
IXC Communications 6-3/4%+........ 1,160 55,825
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $121,730)............... 184,263
-----------
SHORT-TERM HOLDINGS -- 2.9%
(Cost $900,000)............... 900,000
-----------
TOTAL INVESTMENTS -- 98.2%
(Cost $29,500,151)............ 30,395,041
OTHER ASSETS LESS
LIABILITIES-- 1.8% ........... 555,598
-----------
NET ASSETS-- 100.0%.............. $30,950,639
-----------
-----------
- -----------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 41.8%
AEROSPACE -- 1.2%
General Dynamics................. 3,800 $ 176,700
-----------
AUTOMOTIVE AND RELATED -- 2.0%
Chrysler......................... 3,600 202,950
Eaton............................ 1,100 85,525
-----------
288,475
-----------
BANKING AND FINANCE -- 4.5%
Ahmanson (H.F.).................. 2,700 191,700
BankAmerica...................... 900 77,794
Bank of New York................. 2,200 133,512
Citicorp......................... 800 119,400
Hartford Financial Services
Group......................... 1,100 125,812
-----------
648,218
-----------
CHEMICALS -- 1.5%
duPont (E.I.) de Nemours......... 1,300 97,012
Goodrich (B.F.).................. 2,400 119,100
-----------
216,112
-----------
SHARES VALUE
----------- -----------
CONSUMER GOODS AND
SERVICES -- 6.5%
Anheuser-Busch................... 1,400 $ 66,062
Avon Products.................... 1,700 131,750
General Mills.................... 2,500 170,937
Kimberly-Clark................... 2,000 91,750
RJR Nabisco Holdings............. 1,700 40,375
Russell.......................... 3,600 108,675
Sara Lee......................... 4,300 240,531
The Stanley Works................ 2,100 87,281
-----------
937,361
-----------
DIVERSIFIED -- 0.4%
Alexander & Baldwin.............. 2,100 61,031
-----------
DRUGS AND HEALTH CARE -- 2.4%
American Home Products........... 2,200 113,850
Bristol-Myers Squibb............. 2,000 229,875
-----------
343,725
-----------
- --------------
+ Rule 144A security.
See Notes to Financial Statements.
P-37
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
SHARES VALUE
----------- -----------
ELECTRIC AND GAS
UTILITIES -- 3.7%
FPL Group........................ 2,500 $ 157,500
Unicom........................... 4,700 164,794
The Williams Companies........... 6,000 202,500
-----------
524,794
-----------
ENERGY -- 5.6%
Exxon............................ 1,900 135,494
Mobil............................ 1,900 145,587
Royal Dutch Petroleum
(Netherlands)................. 2,300 126,069
Texaco........................... 3,600 214,875
Unocal........................... 5,100 182,325
-----------
804,350
-----------
FOOD -- 0.8%
ConAgra.......................... 3,600 114,075
-----------
INSURANCE -- 3.7%
American General................. 2,200 156,613
Lincoln National................. 1,500 137,063
Marsh & McLennan................. 2,250 135,984
St. Paul Companies............... 2,600 109,363
-----------
539,023
-----------
MACHINERY AND
EQUIPMENT -- 1.5%
GATX............................. 4,800 210,600
-----------
METALS AND MINING -- 0.8%
Allegheny Teledyne............... 5,100 116,663
-----------
PAPER AND PACKAGING -- 1.1%
Mead............................. 1,800 57,150
Union Camp....................... 1,100 54,588
Weyerhaeuser..................... 1,100 50,806
-----------
162,544
-----------
RETAILING -- 2.0%
May Department Stores............ 1,900 124,450
Penney (J.C.).................... 2,300 166,319
-----------
290,769
-----------
TOBACCO -- 1.2%
Philip Morris.................... 4,400 173,250
-----------
SHARES OR
PRINCIPAL
AMOUNT VALUE
----------- -----------
TRANSPORTATION -- 0.4%
Norfolk Southern................. 1,800 $ 53,663
-----------
UTILITIES/
TELECOMMUNICATIONS -- 2.5%
GTE.............................. 3,700 shs. 205,813
SBC Communications............... 4,000 160,000
-----------
365,813
-----------
TOTAL COMMON STOCKS
(Cost $5,311,888)............. 6,027,166
-----------
CORPORATE BONDS -- 28.3%
AUTOMOTIVE -- 3.9%
Chrysler Financial 6.09%,
4/6/2001...................... $ 300,000 300,963
Ford Motor Credit 6-3/4%,
8/15/2008..................... 250,000 259,207
-----------
560,170
-----------
BANKING AND FINANCE -- 4.6%
Associates Corp. of North
America 6-1/2%, 8/15/2002...... 300,000 304,889
Capital One Bank 8-1/8%,
3/1/2000...................... 250,000 257,689
First USA Bank 5-3/4%, 1/15/1999.. 100,000 99,978
-----------
662,556
-----------
ELECTRIC AND GAS
UTILITIES -- 2.1%
Consumers Energy 6-3/8%,
2/1/2008+..................... 300,000 299,089
-----------
ENERGY -- 3.0%
Petroleum Geo-Services 7-1/2%,
3/31/2007..................... 400,000 435,169
-----------
FUNERAL SERVICES -- 2.1%
Loewen Group International
7-1/2%, 4/15/2001.............. 300,000 305,562
-----------
MEDIA -- 6.0%
Time Warner 7-3/4%, 6/15/2005..... 500,000 536,895
Viacom 7-3/4%, 6/1/2005........... 300,000 321,371
-----------
858,266
-----------
- --------------
+ Rule 144A security.
See Notes to Financial Statements.
P-38
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
PRINCIPAL
AMOUNT VALUE
----------- -----------
RETAILING -- 3.8%
Federated Department Stores
10%, 2/15/2001................ $ 500,000 $ 546,156
-----------
TECHNOLOGY -- 2.8%
Dell Computer 6.55%, 4/15/2008... 400,000 406,240
-----------
OTHER............................ 1,700
-----------
TOTAL CORPORATE BONDS
(Cost $4,115,111)............. 4,074,908
-----------
US GOVERNMENT
SECURITIES -- 20.4%
US Treasury Notes 6-1/4%,
6/30/2002..................... 500,000 512,501
US Treasury Notes 5-3/4%,
11/30/2002.................... 300,000 302,531
US Treasury Notes 6-1/2%,
5/15/2005..................... 500,000 527,969
US Treasury Notes 6-1/2%,
10/15/2006.................... 500,000 531,250
US Treasury Notes 6-5/8%,
5/15/2007..................... 1,000,000 1,075,001
-----------
TOTAL US GOVERNMENT
SECURITIES (Cost $2,894,881).. 2,949,252
-----------
SHARES VALUE
----------- -----------
CONVERTIBLE PREFERRED
STOCKS -- 4.7%
BANKING AND
FINANCE -- 2.5%
Salomon Smith Barney 7-5/8% ....... 7,500 $ 357,187
-----------
INSURANCE -- 2.2%
St. Paul Capital 6%............... 4,500 324,000
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $439,020)............... 681,187
-----------
SHORT-TERM HOLDINGS -- 2.8%
(Cost $400,000)............... 400,000
-----------
TOTAL INVESTMENTS -- 98.0%
(Cost $13,160,900)............ 14,132,513
OTHER ASSETS LESS
LIABILITIES-- 2.0%............. 287,442
-----------
NET ASSETS-- 100.0%............... $14,419,955
-----------
-----------
- ------------
See Notes to Financial Statements.
P-39
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
SELIGMAN LARGE-CAP VALUE PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 80.7%
AEROSPACE -- 3.1%
Goodrich (B.F.).................. 700 $ 34,738
-----------
AUTOMOTIVE AND RELATED -- 6.4%
Ford Motor....................... 550 32,450
General Motors................... 600 40,088
-----------
72,538
-----------
BANKING -- 9.4%
BankAmerica...................... 300 25,931
Bank of New York................. 700 42,481
Summit Bancorp................... 800 38,000
-----------
106,412
-----------
ENERGY -- 3.2%
Texaco........................... 600 35,812
-----------
FINANCE AND INSURANCE -- 11.1%
The Equitable Companies.......... 600 44,963
Travelers........................ 600 36,375
Washington Mutual................ 1,025 44,491
-----------
125,829
-----------
FOOD -- 4.4%
Dole Food........................ 1,000 49,688
-----------
HOUSEHOLD PRODUCTS AND
FURNISHINGS -- 10.3%
Armstrong World Industries....... 500 33,687
Dial............................. 1,800 46,688
Kimberly-Clark................... 800 36,700
-----------
117,075
-----------
INDUSTRIAL EQUIPMENT -- 4.0%
General Electric................. 500 45,500
-----------
SHARES VALUE
----------- -----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 2.4%
Baxter International............. 500 $ 26,906
-----------
OFFICE EQUIPMENT -- 3.6%
Xerox............................ 400 40,650
-----------
PACKAGING -- 2.1%
Crown Cork & Seal................ 500 23,750
-----------
PAPER AND FOREST
PRODUCTS -- 5.6%
Champion International........... 500 24,594
Georgia-Pacific.................. 650 38,309
-----------
62,903
-----------
RETAIL TRADE -- 7.8%
May Department Stores............ 400 26,200
Penney (J.C.).................... 350 25,309
Sears, Roebuck................... 600 36,638
-----------
88,147
-----------
SPECIALTY MATERIALS -- 3.3%
Raychem.......................... 1,250 36,953
-----------
TOBACCO -- 4.0%
Philip Morris.................... 1,150 45,281
-----------
TOTAL INVESTMENTS -- 80.7%
(Cost $921,679)............... 912,182
OTHER ASSETS LESS
LIABILITIES-- 19.3%........... 218,016
-----------
NET ASSETS-- 100.0%.............. $ 1,130,198
-----------
-----------
- --------------
See Notes to Financial Statements.
P-40
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
June 30, 1998
- ------------------------------------------------------------------------------
SELIGMAN SMALL-CAP VALUE PORTFOLIO
SHARES VALUE
----------- -----------
COMMON STOCKS -- 77.7%
ADVERTISING -- 2.9%
True North Communications........ 1,000 $ 29,250
-----------
APPAREL AND TEXTILES -- 3.3%
Cutter & Buck*................... 1,250 33,516
-----------
BUILDING AND
CONSTRUCTION -- 1.9%
Dal-Tile International*.......... 1,900 18,644
-----------
CAPITAL GOODS -- 6.9%
Apogee Enterprises............... 2,200 33,687
BMC Industries................... 4,100 35,875
-----------
69,562
-----------
COMPUTER SOFTWARE -- 3.3%
Dialogic*........................ 1,100 32,587
-----------
DISTRIBUTORS -- 5.3%
Cubic............................ 1,050 25,069
Elsag Bailey Process Auto
(ADRs)* (Netherlands)......... 1,150 27,672
-----------
52,741
-----------
GARDEN PRODUCTS -- 2.7%
Acorn Products*.................. 3,700 26,594
-----------
INDUSTRIAL GOODS AND
SERVICES -- 3.6%
Furon............................ 2,000 36,250
-----------
MACHINERY -- 3.6%
Stewart & Stevenson Services..... 2,000 35,750
-----------
MANUFACTURING -- 3.3%
Mueller Industries*.............. 900 33,413
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 3.3%
ChiRex*.......................... 1,900 33,309
-----------
SHARES VALUE
----------- -----------
OIL AND GAS -- 6.9%
Friede Goldman International*.... 1,400 $ 40,381
Marine Drilling*................. 1,800 28,744
-----------
69,125
-----------
PLASTICS -- 2.5%
Lamson & Sessions*............... 4,000 24,750
-----------
PRINTING AND PUBLISHING -- 6.4%
Cadmus Communications............ 1,550 37,684
Merrill.......................... 1,200 26,587
-----------
64,271
-----------
RESTAURANTS -- 6.5%
Apple South...................... 2,100 27,431
Foodmaker*....................... 2,250 37,969
-----------
65,400
-----------
RETAIL TRADE -- 5.6%
Abercrombie & Fitch
(Class A)* ................... 700 30,800
The Wet Seal (Class A)*.......... 800 25,700
-----------
56,500
-----------
SPECIALTY CHEMICALS -- 3.7%
Dexter........................... 1,150 36,584
-----------
SPECIALTY METALS/STEEL -- 2.6%
Olympic Steel*................... 2,100 26,513
-----------
TOBACCO -- 3.4%
Consolidated Cigar Holding*...... 2,800 34,300
-----------
TOTAL INVESTMENTS -- 77.7%
(Cost $832,508)................ 779,059
OTHER ASSETS LESS
LIABILITIES-- 22.3%............ 224,230
-----------
NET ASSETS-- 100.0%.............. $ 1,003,289
-----------
-----------
- -------------
* Non-income producing security.
See Notes to Financial Statements.
P-41
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (unaudited) June 30, 1998
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN
SELIGMAN SELIGMAN COMMUNICATIONS
SELIGMAN SELIGMAN CASH COMMON AND
BOND CAPITAL MANAGEMENT STOCK INFORMATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings................. $6,306,152 $20,995,604 $ 3,897 $56,546,746 $100,128,979
Short-term holdings................ 250,000 2,600,000 8,918,606 2,300,000 3,500,000
---------- ----------- ---------- ----------- ------------
Total Investments.................. 6,556,152 23,595,604 8,922,503 58,846,746 103,628,979
Cash............................... 195,210 54,831 229,892 -- 28,660
Interest and dividends
receivable...................... 87,957 6,659 70,491 93,333 13,437
Receivable for Capital
Stock sold...................... 4,526 625 -- 12,749 221,434
Receivable from associated
companies....................... 1,929 29,995 4,991 -- --
Receivable for securities sold..... -- -- -- 51,128 1,155,732
Unrealized appreciation on
foreign currencies and
forward currency contracts...... -- -- -- -- --
Other.............................. -- -- -- -- --
---------- ----------- ---------- ----------- ------------
TOTAL ASSETS....................... 6,845,774 23,687,714 9,227,877 59,003,956 105,048,242
---------- ----------- ---------- ----------- ------------
LIABILITIES:
Payable for securities purchased... 199,062 147,000 -- 307,279 526,534
Payable for Capital Stock
redeemed........................ 55 726 28 16,042 --
Payable to custodian............... -- -- -- 195,431 --
Unrealized depreciation on
foreign currencies and
forward currency contracts...... -- -- -- -- --
Accrued expenses, taxes,
and other....................... 16,103 26,510 14,893 43,280 100,392
---------- ----------- ---------- ----------- ------------
TOTAL LIABILITIES.................. 215,220 174,236 14,921 562,032 626,926
---------- ----------- ---------- ----------- ------------
NET ASSETS......................... $6,630,554 $23,513,478 $9,212,956 $58,441,924 $104,421,316
---------- ----------- ---------- ----------- ------------
---------- ----------- ---------- ----------- ------------
COMPOSITION OF NET ASSETS:
Capital Stock, at par.............. $ 624 $ 1,140 $ 9,213 $ 3,172 $ 7,052
Additional paid-in-capital......... 6,209,237 16,545,864 9,204,143 43,428,730 98,494,644
Undistributed/accumulated net
investment income (loss)........ 186,257 12,037 -- 460,675 (248,658)
Undistributed/accumulated net
realized gain (loss)............ 61,122 3,170,399 (327) 2,966,132 3,581,574
Net unrealized appreciation
(depreciation) of investments... 173,314 3,784,038 (73) 11,583,215 2,586,704
Net unrealized depreciation on
translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts...... -- -- -- -- --
---------- ----------- ---------- ----------- ------------
NET ASSETS......................... $6,630,554 $23,513,478 $9,212,956 $58,441,924 $104,421,316
---------- ----------- ---------- ----------- ------------
---------- ----------- ---------- ----------- ------------
SHARES OF CAPITAL STOCK
OUTSTANDING
($0.001 par value).............. 624,036 1,140,211 9,213,356 3,172,204 7,052,179
---------- ----------- ---------- ----------- ------------
---------- ----------- ---------- ----------- ------------
NET ASSET VALUE PER SHARE.......... $10.63 $20.62 $1.00 $18.42 $14.81
---------- ----------- ---------- ----------- ------------
---------- ----------- ---------- ----------- ------------
</TABLE>
- --------------
See Notes to Financial Statements.
P-42
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued) June 30, 1998
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN SELIGMAN
HENDERSON HENDERSON HENDERSON SELIGMAN
SELIGMAN GLOBAL GROWTH GLOBAL SMALLER GLOBAL HENDERSON
FRONTIER OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings................. $46,008,484 $7,544,096 $21,794,303 $4,777,878 $10,280,177
Short-term holdings................ 7,200,000 500,000 1,200,000 350,000 300,000
----------- ---------- ----------- ---------- -----------
Total Investments.................. 53,208,484 8,044,096 22,994,303 5,127,878 10,580,177
Cash............................... 98,416 424,823 354,698 200,982 237,310
Interest and dividends
receivable...................... 2,260 15,081 50,891 2,949 56,656
Receivable for Capital
Stock sold...................... 4,279 -- 1,259 17,696 7,206
Receivable from associated
companies....................... -- 1,387 1,514 2,828 3,475
Receivable for securities sold..... 641,097 10,634 175,999 47,482 7,095
Unrealized appreciation on
foreign currencies and
forward currency contracts...... -- 12,058 25,393 -- 19,186
Other.............................. -- -- -- 1,333 --
----------- ---------- ----------- ---------- -----------
TOTAL ASSETS....................... 53,954,536 8,508,079 23,604,057 5,401,148 10,911,105
----------- ---------- ----------- ---------- -----------
LIABILITIES:
Payable for securities purchased... 606,286 382,208 116,398 42,607 126,410
Payable for Capital Stock
redeemed........................ 5,444,133 5,177 9,463 -- 14,110
Payable to custodian............... -- -- -- -- --
Unrealized depreciation on
foreign currencies and
forward currency contracts...... -- 100 208 -- 68
Accrued expenses, taxes,
and other....................... 52,977 16,545 36,331 13,242 24,251
----------- ---------- ----------- ---------- -----------
TOTAL LIABILITIES.................. 6,103,396 404,030 162,400 55,849 164,839
----------- ---------- ----------- ---------- -----------
NET ASSETS......................... $47,851,140 $8,104,049 $23,441,657 $5,345,299 $10,746,266
----------- ---------- ----------- ---------- -----------
----------- ---------- ----------- ---------- -----------
COMPOSITION OF NET ASSETS:
Capital Stock, at par.............. $ 2,797 $ 616 $ 1,555 $ 415 $ 672
Additional paid-in-capital......... 40,994,502 6,676,395 19,731,469 4,591,586 8,235,517
Undistributed/accumulated net
investment income (loss)........ (112,576) 32,884 (5,589) (5,967) 59,239
Undistributed/accumulated net
realized gain (loss)............ 3,695,945 (17,899) 446,630 256,828 454,600
Net unrealized appreciation
(depreciation) of investments... 3,270,472 1,544,433 3,832,090 532,396 2,199,147
Net unrealized depreciation on
translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts...... -- (132,380) (564,498) (29,959) (202,909)
----------- ---------- ----------- ---------- -----------
NET ASSETS......................... $47,851,140 $8,104,049 $23,441,657 $5,345,299 $10,746,266
----------- ---------- ----------- ---------- -----------
----------- ---------- ----------- ---------- -----------
SHARES OF CAPITAL STOCK
OUTSTANDING
($0.001 par value).............. 2,797,285 615,837 1,554,735 415,184 671,896
----------- ---------- ----------- ---------- -----------
----------- ---------- ----------- ---------- -----------
NET ASSET VALUE PER SHARE.......... $17.11 $13.16 $15.08 $12.87 $15.99
----------- ---------- ----------- ---------- -----------
----------- ---------- ----------- ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN SELIGMAN
HIGH-YIELD SELIGMAN LARGE-CAP SMALL-CAP
BOND INCOME VALUE VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings................. $29,495,041 $13,732,513 $ 912,182 $ 779,059
Short-term holdings................ 900,000 400,000 -- --
----------- ----------- ---------- ----------
Total Investments 30,395,041 14,132,513 912,182 779,059
Cash............................... 76,671 185,491 217,122 281,514
Interest and dividends
receivable...................... 633,902 110,090 893 337
Receivable for Capital
Stock sold...................... 12,795 8,566 -- 6
Receivable from associated
companies....................... 1,532 -- 2,516 2,525
Receivable for securities sold..... 228,734 12,201 -- --
Unrealized appreciation on
foreign currencies and
forward currency contracts...... -- -- -- --
Other.............................. -- -- 1,667 1,667
----------- ----------- ---------- ----------
TOTAL ASSETS....................... 31,348,675 14,448,861 1,134,380 1,065,108
----------- ----------- ---------- ----------
LIABILITIES:
Payable for securities purchased... 364,826 -- -- 57,590
Payable for Capital Stock
redeemed........................ -- 6,853 10 --
Payable to custodian............... -- -- -- --
Unrealized depreciation on
foreign currencies and
forward currency contracts...... -- -- -- --
Accrued expenses, taxes,
and other....................... 33,210 22,053 4,172 4,229
----------- ----------- ---------- ----------
TOTAL LIABILITIES.................. 398,036 28,906 4,182 61,819
----------- ----------- ---------- ----------
NET ASSETS......................... $30,950,639 $14,419,955 $1,130,198 $1,003,289
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
COMPOSITION OF NET ASSETS:
Capital Stock, at par.............. $ 2,464 $ 1,263 $ 114 $ 110
Additional paid-in-capital......... 28,596,710 12,791,440 1,134,535 1,050,444
Undistributed/accumulated net
investment income (loss)........ 1,251,947 288,337 314 (568)
Undistributed/accumulated net
realized gain (loss)............ 204,628 367,302 4,732 6,752
Net unrealized appreciation
(depreciation) of investments... 894,890 971,613 (9,497) (53,449)
Net unrealized depreciation on
translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts...... -- -- -- --
----------- ----------- ---------- ----------
NET ASSETS......................... $30,950,639 $14,419,955 $1,130,198 $1,003,289
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
SHARES OF CAPITAL STOCK
OUTSTANDING
($0.001 par value).............. 2,463,568 1,263,251 113,914 109,613
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
NET ASSET VALUE PER SHARE.......... $12.56 $11.41 $9.92 $9.15
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
</TABLE>
P-43
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (unaudited)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN
SELIGMAN SELIGMAN COMMUNICATIONS
SELIGMAN SELIGMAN CASH COMMON AND
BOND CAPITAL MANAGEMENT STOCK INFORMATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest........................... $210,345 $ 36,350 $251,694 $ 71,108 $ 142,152
Dividends.......................... -- 45,312 -- 499,500 39,927
-------- ---------- -------- ----------- ----------
TOTAL INVESTMENT INCOME**.......... 210,345 81,662 251,694 570,608 182,079
-------- ---------- -------- ----------- ----------
EXPENSES:..........................
Management fee..................... 13,286 43,427 18,841 109,969 370,134
Auditing fee....................... 2,937 5,137 3,537 9,937 16,587
Shareholder reports and
communications.................. 2,791 2,791 2,791 2,791 2,691
Registration....................... 2,402 3,466 2,291 5,710 7,816
Directors' fees and expenses....... 2,317 2,411 2,338 2,623 2,902
Custody and related services....... 1,623 7,055 1,871 7,681 27,457
Legal fee.......................... 766 766 766 766 766
Miscellaneous...................... 692 522 356 708 723
-------- ---------- -------- ----------- ----------
TOTAL EXPENSES BEFORE
WAIVER/REIMBURSEMENT............ 26,814 65,575 32,791 140,185 429,076
Waiver/reimbursement of
expenses........................ (6,869) (438) (32,791) -- --
-------- ---------- -------- ----------- ----------
TOTAL EXPENSES AFTER
WAIVER/REIMBURSEMENT............ 19,945 65,137 -- 140,185 429,076
-------- ---------- -------- ----------- ----------
NET INVESTMENT INCOME (LOSS)....... 190,400 16,525 251,694 430,423 (246,997)
-------- ---------- -------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments... 113,020 3,033,222 71 2,964,546 3,581,574
Net realized loss from foreign
currency transactions........... -- -- -- -- --
Net change in unrealized
appreciation/depreciation
of investments.................. (48,643) (200,220) (73) 3,329,956 8,312,783
Net change 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.................... 64,377 2,833,002 (2) 6,294,502 11,894,357
-------- ---------- -------- ----------- -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS.......... $254,777 $2,849,527 $251,692 $6,724,925 $11,647,360
-------- ---------- -------- ----------- -----------
-------- ---------- -------- ----------- -----------
- --------------------
* For the period May 1, 1998, commencement
of operations, to June 30, 1998.
** Net of foreign tax withheld
as follows: $ -- $ -- $ -- $ 2,173 $ 757
</TABLE>
See Notes to Financial Statements.
P-44
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
For the Six Months Ended June 30, 1998
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN SELIGMAN
HENDERSON HENDERSON HENDERSON SELIGMAN
SELIGMAN GLOBAL GROWTH GLOBAL SMALLER GLOBAL HENDERSON
FRONTIER OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest........................... $ 72,150 $ 12,005 $ 33,293 $ 12,928 $ 6,486
Dividends.......................... 31,096 46,532 132,001 11,307 132,342
---------- ---------- ---------- -------- ----------
TOTAL INVESTMENT INCOME**.......... 103,246 58,537 165,294 24,235 138,828
---------- ---------- ---------- -------- ----------
EXPENSES:..........................
Management fee..................... 176,869 34,398 111,873 22,977 50,464
Auditing fee....................... 8,437 3,087 5,287 2,737 3,487
Shareholder reports and
communications.................. 2,691 2,657 2,657 2,657 2,657
Registration....................... 3,881 2,440 2,918 2,318 2,431
Directors' fees and expenses....... 2,563 2,295 2,407 2,283 2,331
Custody and related services....... 18,289 12,364 39,592 7,844 29,285
Legal fee.......................... 766 885 885 885 885
Miscellaneous...................... 707 779 785 641 520
---------- ---------- ---------- -------- ----------
TOTAL EXPENSES BEFORE
WAIVER/REIMBURSEMENT............ 214,203 58,905 166,404 42,342 92,060
Waiver/reimbursement of
expenses........................ -- (10,749) (9,785) (10,187) (21,417)
---------- ---------- ---------- -------- ----------
TOTAL EXPENSES AFTER
WAIVER/REIMBURSEMENT............ 214,203 48,156 156,619 32,155 70,643
---------- ---------- ---------- -------- ----------
NET INVESTMENT INCOME (LOSS)....... (110,957) 10,381 8,675 (7,920) 68,185
---------- ---------- ---------- -------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments... 3,695,945 15,850 632,728 266,846 512,579
Net realized loss from foreign
currency transactions........... -- (11,718) (198,762) (7,239) (63,984)
Net change in unrealized
appreciation/depreciation
of investments.................. 230,618 1,132,829 2,688,774 557,567 1,106,647
Net change in unrealized
appreciation/depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts.. -- (11,681) 137,585 1,651 43,061
---------- ---------- ---------- -------- ----------
NET GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.................... 3,926,563 1,125,280 3,260,325 818,825 1,598,303
---------- ---------- ---------- -------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS.......... $3,815,606 $1,135,661 $3,269,000 $810,905 $1,666,488
---------- ---------- ---------- -------- ----------
---------- ---------- ---------- -------- ----------
- --------------------
* For the period May 1, 1998, commencement
of operations, to June 30, 1998.
** Net of foreign tax withheld
as follows: $ -- $ 5,090 $ 19,313 $ 1,622 $ 16,148
---------- ---------- ---------- -------- ----------
</TABLE>
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN SELIGMAN
HIGH-YIELD SELIGMAN LARGE-CAP SMALL-CAP
BOND INCOME VALUE VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Interest........................... $1,271,046 $222,626 $ -- $ --
Dividends.......................... 67,773 97,124 1,139 370
---------- -------- ------- --------
TOTAL INVESTMENT INCOME**.......... 1,338,819 319,750 1,139 370
---------- -------- ------- --------
EXPENSES:..........................
Management fee..................... 68,431 28,354 825 938
Auditing fee....................... 6,037 4,037 1,050 1,050
Shareholder reports and
communications.................. 2,691 2,787 1,000 1,000
Registration....................... 3,894 2,090 374 374
Directors' fees and expenses....... 2,417 2,369 863 871
Custody and related services....... 18,726 2,198 960 960
Legal fee.......................... 766 766 312 312
Miscellaneous...................... 522 695 267 267
---------- -------- ------- --------
TOTAL EXPENSES BEFORE
WAIVER/REIMBURSEMENT............ 103,484 43,296 5,651 5,772
Waiver/reimbursement of
expenses........................ (7,678) (765) (4,826) (4,834)
---------- -------- ------- --------
TOTAL EXPENSES AFTER
WAIVER/REIMBURSEMENT............ 95,806 42,531 825 938
---------- -------- ------- --------
NET INVESTMENT INCOME (LOSS)....... 1,243,013 277,219 314 (568)
---------- -------- ------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments... 204,628 366,405 4,732 6,752
Net realized loss from foreign
currency transactions........... -- -- -- --
Net change in unrealized
appreciation/depreciation
of investments.................. 58,938 137,960 (9,497) (53,449)
Net change 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.................... 263,566 504,365 (4,765) (46,697)
---------- -------- ------- --------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS.......... $1,506,579 $781,584 $(4,451) $(47,265)
---------- -------- ------- --------
---------- -------- ------- --------
- --------------------
* For the period May 1, 1998, commencement
of operations, to June 30, 1998.
** Net of foreign tax withheld
as follows: $ -- $ 318 $ -- $ --
</TABLE>
P-45
<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
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- ---------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............. $ 190,400 $ 359,627 $ 16,525 $ 28,503 $ 251,694 $ 512,275
Net realized gain on investments......... 113,020 2,573 3,033,222 1,456,363 71 --
Net realized loss from foreign
currency transactions................. -- -- -- -- -- --
Net change in unrealized appreciation/
depreciation of investments........... (48,643) 158,584 (200,220) 1,876,910 (73) --
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............................ 254,777 520,784 2,849,527 3,361,776 251,692 512,275
---------- ---------- ----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................... -- (360,523) -- (29,292) (251,694) (512,275)
Realized gain on investments............. -- -- -- (1,319,186) -- --
---------- ---------- ----------- ----------- ---------- ----------
DECREASE IN NET ASSETS
FROM DISTRIBUTIONS.................... -- (360,523) -- (1,348,478) (251,694) (512,275)
---------- ---------- ----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares......... 851,803 3,014,160 4,911,925 7,491,753 12,176,616 25,875,970
Investment of dividends.................. -- 360,523 -- 29,292 251,694 512,275
Shares issued in payment of gain
distributions......................... -- -- -- 1,319,186 -- --
---------- ---------- ----------- ----------- ---------- ----------
Total.................................... 851,803 3,374,683 4,911,925 8,840,231 12,428,310 26,388,245
---------- ---------- ----------- ----------- ---------- ----------
Cost of shares redeemed.................. (1,708,063) (1,317,788) (4,647,766) (4,766,794) (11,850,638) (27,507,851)
---------- ---------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS.......................... (856,260) 2,056,895 264,159 4,073,437 577,672 (1,119,606)
---------- ---------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS............................ (601,483) 2,217,156 3,113,686 6,086,735 577,670 (1,119,606)
---------- ---------- ----------- ----------- ---------- ----------
NET ASSETS:
Beginning of Period...................... 7,232,037 5,014,881 20,399,792 14,313,057 8,635,286 9,754,892
---------- ---------- ----------- ----------- ---------- ----------
END OF PERIOD............................ $6,630,554 $7,232,037 $23,513,478 $20,399,792 $9,212,956 $8,635,286
---------- ---------- ----------- ----------- ---------- ----------
---------- ---------- ----------- ----------- ---------- ----------
</TABLE>
- ----------------
See Notes to Financial Statements.
P-46
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN
COMMON STOCK COMMUNICATIONS AND
PORTFOLIO INFORMATION PORTFOLIO
------------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............. $ 430,423 $ 858,211 $ (246,997) $ (378,304)
Net realized gain on investments......... 2,964,546 6,975,977 3,581,574 25,855,124
Net realized loss from foreign
currency transactions................. -- -- -- --
Net change in unrealized appreciation/
depreciation of investments........... 3,329,956 523,788 8,312,783 (10,538,214)
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............................ 6,724,925 8,357,976 11,647,360 14,938,606
----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................... -- (827,581) -- --
Realized gain on investments............. -- (6,979,440) -- (22,307,569)
----------- ----------- ------------ -----------
DECREASE IN NET ASSETS
FROM DISTRIBUTIONS.................... -- (7,807,021) -- (22,307,569)
----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares......... 4,617,784 12,649,970 90,114,474 50,718,332
Investment of dividends.................. -- 827,581 -- --
Shares issued in payment of gain
distributions......................... -- 6,979,440 -- 22,307,569
----------- ----------- ------------ -----------
Total.................................... 4,617,784 20,456,991 90,114,474 73,025,901
----------- ----------- ------------ -----------
Cost of shares redeemed.................. (3,637,948) (7,439,183) (84,973,355) (38,669,048)
----------- ----------- ------------ -----------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS.......................... 979,836 13,017,808 5,141,119 34,356,853
----------- ----------- ------------ -----------
INCREASE (DECREASE) IN
NET ASSETS............................ 7,704,761 13,568,763 16,788,479 26,987,890
NET ASSETS:
Beginning of Period...................... 50,737,163 37,168,400 87,632,837 60,644,947
----------- ----------- ------------ -----------
END OF PERIOD............................ $58,441,924 $50,737,163 $104,421,316 $87,632,837
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
</TABLE>
<TABLE>
<CAPTION>
SELIGMAN HENDERSON
SELIGMAN GLOBAL GROWTH
FRONTIER PORTFOLIO OPPORTUNITIES PORTFOLIO
----------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
----------- ----------- ---------- ----------
OPERATIONS:
Net investment income (loss)............. $ (110,957) $ (184,281) $ 10,381 $ 283
Net realized gain on investments......... 3,695,945 4,064,832 15,850 141,228
Net realized loss from foreign
currency transactions................. -- -- (11,718) (73,436)
Net change in unrealized appreciation/
depreciation of investments........... 230,618 1,855,841 1,132,829 381,018
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency
contracts............................. -- -- (11,681) (112,875)
----------- ----------- ---------- ----------
INCREASE IN NET ASSETS FROM
OPERATIONS............................ 3,815,606 5,736,392 1,135,661 336,218
----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................... -- -- -- --
Realized gain on investments............. -- (3,889,283) -- (60,644)
----------- ----------- ---------- ----------
DECREASE IN NET ASSETS
FROM DISTRIBUTIONS.................... -- (3,889,283) -- (60,644)
----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares......... 111,352,340 18,870,587 2,086,987 4,394,619
Investment of dividends.................. -- -- -- --
Shares issued in payment of gain
distributions......................... -- 3,889,283 -- 60,644
----------- ----------- ---------- ----------
Total.................................... 111,352,340 22,759,870 2,086,987 4,455,263
----------- ----------- ---------- ----------
Cost of shares redeemed.................. (110,290,079) (13,305,727) (567,831) (871,295)
----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS.......................... 1,062,261 9,454,143 1,519,156 3,583,968
----------- ----------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS............................ 4,877,867 11,301,252 2,654,817 3,859,542
NET ASSETS:
Beginning of Period...................... 42,973,273 31,672,021 5,449,232 1,589,690
----------- ----------- ---------- ----------
END OF PERIOD............................ $47,851,140 $42,973,273 $8,104,049 $5,449,232
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
</TABLE>
P-47
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN HENDERSON SELIGMAN HENDERSON SELIGMAN HENDERSON
GLOBAL SMALLER GLOBAL TECHNOLOGY INTERNATIONAL
COMPANIES PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ----------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- ----------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss)......................... $ 8,675 $ 48,159 $ (7,920) $ 3,172 $ 68,185 $ 37,783
Net realized gain on
investments........................... 632,728 813,641 266,846 513,781 512,579 665,686
Net realized gain (loss)
from foreign currency
transactions.......................... (198,762) (407,259) (7,239) (12,358) (63,984) (422,188)
Net change in unrealized
appreciation/depreciation
of investments........................ 2,688,774 750,188 557,567 (84,833) 1,106,647 439,369
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies and
forward currency contracts............ 137,585 (536,914) 1,651 (40,471) 43,061 (72,394)
----------- ----------- ---------- ---------- ----------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS................ 3,269,000 667,815 810,905 379,291 1,666,488 648,256
----------- ----------- ---------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................... -- (26,233) -- (3,585) -- (17,648)
Realized gain on investments............. -- (475,283) -- (503,962) -- (308,510)
----------- ----------- ---------- ---------- ----------- ----------
DECREASE IN NET ASSETS
FROM DISTRIBUTIONS.................... -- (501,516) -- (507,547) -- (326,158)
----------- ----------- ---------- ---------- ----------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale
of shares............................. 1,684,700 5,959,379 2,290,517 3,874,388 920,912 3,331,657
Investment of dividends.................. -- 26,233 -- 3,585 -- 17,648
Shares issued in payment
of gain distributions................. -- 475,283 -- 503,962 -- 308,510
----------- ----------- ---------- ---------- ----------- ----------
Total.................................... 1,684,700 6,460,895 2,290,517 4,381,935 920,912 3,657,815
----------- ----------- ---------- ---------- ----------- ----------
Cost of shares redeemed.................. (2,016,633) (2,998,851) (1,442,351) (1,931,166) (1,023,599) (2,039,720)
----------- ----------- ---------- ---------- ----------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS.......................... (331,933) 3,462,044 848,166 2,450,769 (102,687) 1,618,095
----------- ----------- ---------- ---------- ----------- ----------
INCREASE IN NET ASSETS................... 2,937,067 3,628,343 1,659,071 2,322,513 1,563,801 1,940,193
NET ASSETS:
Beginning of Period...................... 20,504,590 16,876,247 3,686,228 1,363,715 9,182,465 7,242,272
----------- ----------- ---------- ---------- ----------- ----------
END OF PERIOD............................ $23,441,657 $20,504,590 $5,345,299 $3,686,228 $10,746,266 $9,182,465
----------- ----------- ---------- ---------- ----------- ----------
----------- ----------- ---------- ---------- ----------- ----------
</TABLE>
- --------------
* Commencement of operations.
See Notes to Financial Statements.
P-48
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELIGMAN SELIGMAN
SELIGMAN SELIGMAN LARGE-CAP SMALL-CAP
HIGH-YIELD BOND PORTFOLIO INCOME PORTFOLIO VALUE PORTFOLIO VALUE PORTFOLIO
------------------------- ------------------------- --------------- ---------------
SIX MONTHS SIX MONTHS 5/1/98* 5/1/98*
ENDED YEAR ENDED YEAR TO TO
6/30/98 ENDED 6/30/98 ENDED 6/30/98 6/30/98
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) (unaudited)
----------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss)......................... $ 1,243,013 $ 1,628,914 $ 277,219 $ 640,866 $ 314 $ (568)
Net realized gain on
investments........................... 204,628 186,257 366,405 731,075 4,732 6,752
Net realized gain (loss)
from foreign currency
transactions.......................... -- -- -- 5,037 -- --
Net change in unrealized
appreciation/depreciation
of investments........................ 58,938 571,005 137,960 419,679 (9,497) (53,449)
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies and
forward currency contracts............ -- -- -- (10,907) -- --
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS................ 1,506,579 2,386,176 781,584 1,785,750 (4,451) (47,265)
----------- ----------- ----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................... -- (1,614,526) -- (625,869) -- --
Realized gain on investments............. -- (193,743) -- (735,166) -- --
----------- ----------- ----------- ----------- ---------- ----------
DECREASE IN NET ASSETS
FROM DISTRIBUTIONS.................... -- (1,808,269) -- (1,361,035) -- --
----------- ----------- ----------- ----------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale
of shares............................. 8,742,515 16,215,266 1,064,036 2,166,510 994,352 917,604
Investment of dividends.................. -- 1,614,526 -- 625,869 -- --
Shares issued in payment
of gain distributions................. -- 193,743 -- 735,166 -- --
----------- ----------- ----------- ----------- ---------- ----------
Total.................................... 8,742,515 18,023,535 1,064,036 3,527,545 994,352 917,604
----------- ----------- ----------- ----------- ---------- ----------
Cost of shares redeemed.................. (2,566,235) (6,510,022) (1,260,945) (3,833,770) (7,152) (14,499)
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS.......................... 6,176,280 11,513,513 (196,909) (306,225) 987,200 903,105
----------- ----------- ----------- ----------- ---------- ----------
INCREASE IN NET ASSETS................... 7,682,859 12,091,420 584,675 118,490 982,749 855,840
NET ASSETS:
Beginning of Period...................... 23,267,780 11,176,360 13,835,280 13,716,790 147,449 147,449
----------- ----------- ----------- ----------- ---------- ----------
END OF PERIOD............................ $30,950,639 $23,267,780 $14,419,955 $13,835,280 $1,130,198 $1,003,289
----------- ----------- ----------- ----------- ---------- ----------
----------- ----------- ----------- ----------- ---------- ----------
</TABLE>
- --------------
* Commencement of operations.
See Notes to Financial Statements.
P-49
<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 14 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"), Seligman Income Portfolio ("Income Portfolio"),
Seligman Large-Cap Value Portfolio ("Large-Cap Value Portfolio"), and Seligman
Small-Cap Value Portfolio ("Small-Cap Value 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 CLICA. 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 Bond, Capital,CashManagement,CommonStock,
andIncomePortfolios 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 andGovernment Agency
securities, 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 an exchange are valued at the last sales prices or, in their
absence and in the case of over-the-counter securities, at the 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 generally valued using the amortized cost method which approximates fair
value. Other investments represent shares of certain other funds in the
Seligman Group of Investment Companies purchased to offset the Cash
Management Portfolio's liability for deferred directors' fees. Such
investments are valued at current market values.
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, (together, the "Seligman Henderson Portfolios"),
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 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.
P-50
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
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 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 Seligman Henderson Portfolios 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 during 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, 1998, were as follows:
PORTFOLIO PURCHASES SALES
--------- ----------- -----------
Bond $ 2,225,049 $ 2,292,727
Capital 11,551,847 13,366,140
Cash Management 3,899 --
Common Stock 19,407,600 17,551,298
Communications and Information 62,753,906 60,511,322
Frontier 20,759,450 19,056,043
Global Growth Opportunities 2,425,506 1,197,090
P-51
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
PORTFOLIO PURCHASES SALES
--------- ----------- ----------
Global Smaller Companies $ 5,452,239 $6,353,557
Global Technology 2,305,099 1,528,062
International 3,505,880 3,445,347
High-Yield Bond 14,932,993 8,011,808
Income 5,449,652 5,485,651
Large-Cap Value 948,535 31,588
Small-Cap Value 858,639 32,883
For the six months ended June 30, 1998, purchases and sales of US Government
obligations were $1,091,438 and $1,288,188, respectively, for the Bond
Portfolio, and $1,369,953 and $520,469, respectively, for the Income Portfolio.
Identified cost of investments sold is used for both financial statement and
federal income tax purposes.
At June 30, 1998, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes. 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 $ 173,450 $ 136
Capital 4,203,271 419,233
Cash Management 27 100
Common Stock 12,563,358 980,143
Communications and Information 15,857,507 13,270,803
Frontier 7,471,192 4,200,720
Global Growth Opportunities 1,706,889 305,357
Global Smaller Companies 5,506,431 2,262,892
Global Technology 1,055,834 553,340
International 2,550,830 573,979
High-Yield Bond 1,075,991 181,101
Income 1,217,888 246,275
Large-Cap Value 26,923 36,420
Small-Cap Value 17,239 70,688
4. MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS -- The
Manager manages the affairs of the Fund and provides or arranges for the
necessary personnel and facilities. Prior to July 1, 1998, Seligman Henderson
Co. (the "Subadviser"), an entity owned 50% each by the Manager and Henderson
International, Inc., a subsidiary of Henderson plc, supervised and directed the
global investments of the Seligman Henderson Portfolios. Compensation of all
officers of the Fund, all directors of the Fund who are employees or consultants
of the Manager, and all personnel of the Fund and the Manager is paid by the
Manager or by Henderson plc.
The Manager's fee, which is calculated daily and payable monthly, is equal to
0.40%, on an annual basis, of each of Bond, Capital, Cash Management, Common
Stock, and Income Portfolios' daily net assets; equal to 0.75%, on an annual
basis, of each 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 of the Seligman Henderson
Portfolios is calculated daily and payable monthly, equal to an annual rate of
1.00% of the daily net assets of each Portfolio. The Manager's fee of Large-Cap
Value Portfolio is equal to 0.80% per annum of the first $500 million of average
daily net assets, 0.70% per annum of the next $500 million of average daily net
assets, and 0.60% per annum in excess of $1 billion of average daily net assets
of the Portfolio. The Manager's fee for the Small-Cap Value Portfolio is equal
to 1.00% per annum of the first $500 million of average daily net assets, 0.90%
per annum of the next $500 million of average daily net assets, and 0.80% per
annum in excess of $1 billion of average daily net assets of the Portfolio.
The Manager has agreed to reimburse expenses, other than the management fee
that exceed 0.20% per annum of the average daily net assets of each of Bond,
Capital, Common Stock, Communications and Information, Frontier, High-Yield Bond
and Income Portfolios. The Manager, at its discretion and until it determines
otherwise, has elected to waive all of its fee for, and reimburse all of the
expenses of, the Cash Management Portfolio. The Manager and the Subadviser
(through June 30, 1998) have agreed to reimburse expenses, other than the
management fee, which exceed 0.40% per annum of the average daily net
P-52
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
assets of each of the Seligman Henderson Portfolios. The Manager, at its
discretion, has also agreed to reimburse all expenses, other than the management
fees, of the Large-Cap Value and Small-Cap Value Portfolios. For the six months
ended June 30, 1998, the Manager waived fees and/or reimbursed expenses of
$6,869, $438, $32,791, $7,678 and $765 for Bond, Capital, Cash Management,
High-Yield Bond, and Income Portfolios, respectively. For the same period, the
Manager waived all of its fees and the Subadviser waived a portion of its fee,
for Global Growth Opportunities, Global Smaller Companies, Global Technology,
and International Portfolios, totalling $10,749, $9,785, $10,187 and $21,417,
respectively. For the period May 1, 1998, commencement of operations, to June
30, 1998, the Manager reimbursed expenses of $4,826 and $4,834, for Large-Cap
Value and Small-Cap Value Portfolios, respectively.
On March 30, 1998, AMP Limited, an Australian life insurance and financial
services company, completed an acquisition of Henderson plc, which resulted in
the termination of the Fund's subadvisory agreements. The Fund's Board of
Directors approved interim subadvisory agreements pursuant to which the
Subadviser continued to supervise and direct the global investments of the
Seligman Henderson Portfolios, subject to shareholder approval. The Fund's
directors also approved a proposed new subadvisory agreement pursuant to which
Henderson Investment Management Limited ("HIML"), a wholly-owned subsidiary of
Henderson plc would replace the Subadviser as subadviser to the Seligman
Henderson Portfolios, and be responsible for furnishing investment advice,
research, and assistance with respect to non-US investments. Under the new
agreement, the Manager is responsible for the US investments of the Seligman
Henderson Portfolios and has overall responsibility for management of the
Portfolios. Both the interim subadvisory agreements and the new subadvisory
agreement were approved by vote of the shareholders of the Seligman Henderson
Portfolios on June 30, 1998.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the CLVA-2 Contracts and an affiliate of the Manager, received
concessions of $122,407 from Canada Life Insurance Company of America and $6,932
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 and the Distributor.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of the
other funds in the Seligman Group of Investment Companies. The cost of such fees
and earnings accrued thereon is included in directors' fees and expenses, and
the accumulated balances thereof at June 30, 1998, are included in other
liabilities. Deferred fees and related accrued earnings are not deductible for
the federal income tax purposes until such amounts are paid.
5. LOSS CARRYFORWARD -- At December 31, 1997, the Bond Portfolio and the Cash
Management Portfolio had net capital loss carryfowards for federal income tax
purposes of $51,898 and $398, respectively, which are available for offset
against future taxable net gains. These net capital loss carryforwards will
expire in varying amounts through 2003.
6. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS -- At June 30,1998, the Fund
had outstanding forward exchange currency contracts to purchase or sell foreign
currencies as follows:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT US $ APPRECIATION
CONTRACT CURRENCY FOR US $ DATE VALUE (DEPRECIATION)
- -------- -------- ----------- ---------- --------- --------------
<S> <C> <C> <C> <C> <C>
GLOBAL GROWTH OPPORTUNITIES PORTFOLIO
Purchases:
German deutschemarks 149,327 82,433 7/1/98 82,592 $ 159
Japanese yen 4,772,100 34,393 7/2/98 34,293 (100)
Japanese yen 19,841,500 140,000 8/20/98 143,602 3,602
-------
3,661
-------
Sales:
Japanese yen 34,777,860 260,000 8/20/98 251,703 8,297
-------
$11,958
=======
GLOBAL SMALLER COMPANIES PORTFOLIO
Purchases:
Japanese yen 39,683,000 280,000 8/20/98 287,204 $ 7,204
-------
Sales:
Singapore dollar 21,972 12,819 7/1/98 13,027 (208)
Japanese yen 76,243,770 570,000 8/20/98 551,811 18,189
-------
17,981
-------
$25,185
=======
</TABLE>
P-53
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT US $ APPRECIATION
CONTRACT CURRENCY FOR US $ DATE VALUE (DEPRECIATION)
- -------- -------- ----------- ---------- --------- --------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL PORTFOLIO
Purchases:
Portuguese escudos 8,600,000 46,532 7/2/98 46,464 $ (68)
Japanese yen 28,345,000 200,000 8/20/98 205,146 5,146
-------
5,078
-------
Sales:
Japanese yen 58,854,840 440,000 8/20/98 425,960 14,040
-------
$19,118
=======
</TABLE>
7. CAPITAL STOCK TRANSACTIONS -- At June 30, 1998, there were 20,000,000 shares
of Capital Stock authorized for each of Global Growth Opportunities, Global
Technology, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000 shares
for each of Bond, Capital, International, and Income Portfolios; and 100,000,000
shares for each of Cash Management, Common Stock, Communications and
Information, Frontier, Global Smaller Companies, and High-Yield Bond Portfolios,
all at a par value of $0.001 per share. Transactions in shares of Capital Stock
were as follows:
<TABLE>
<CAPTION>
BOND CAPITAL CASH MANAGEMENT
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 81,769 292,591 254,845 421,000 12,176,616 25,875,970
Shares issued in payment
of dividends..................... -- 35,242 -- 1,659 251,694 512,275
Shares issued in payment
of gain distributions............ -- -- -- 74,699 -- --
-------- -------- -------- -------- ----------- -----------
Total............................... 81,769 327,833 254,845 497,358 12,428,310 26,388,245
-------- -------- -------- -------- ----------- -----------
Shares redeemed..................... (164,259) (128,619) (241,870) (264,028) (11,850,638) (27,507,851)
-------- -------- -------- -------- ----------- -----------
Increase (decrease) in shares....... (82,490) 199,214 12,975 233,330 577,672 (1,119,606)
======== ======== ======== ======== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
COMMUNICATIONS
COMMON STOCK AND INFORMATION FRONTIER
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 263,995 706,222 6,104,241 2,968,727 6,535,251 1,172,506
Shares issued in payment
of dividends..................... -- 51,724 -- -- -- --
Shares issued in payment
of gain distributions............ -- 436,215 -- 1,783,179 -- 255,874
-------- --------- ---------- ---------- ----------- -----------
Total............................... 263,995 1,194,161 6,104,241 4,751,906 6,535,251 1,428,380
-------- --------- ---------- ---------- ----------- -----------
Shares redeemed..................... (208,644) (412,385) (5,748,098) (2,185,329) (6,461,325) (819,268)
-------- --------- ---------- ---------- ----------- -----------
Increase in shares.................. 55,351 781,776 356,143 2,566,577 73,926 609,112
======== ========= ========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH GLOBAL SMALLER GLOBAL
OPPORTUNITIES COMPANIES TECHNOLOGY
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 165,864 409,426 114,618 447,087 184,806 329,216
Shares issued in payment
of dividends..................... -- -- -- 2,062 -- 347
Shares issued in payment
of gain distributions............ -- 5,564 -- 37,365 -- 48,881
-------- -------- -------- -------- --------- ---------
Total............................... 165,864 414,990 114,618 486,514 184,806 378,444
-------- -------- -------- -------- --------- ---------
Shares redeemed..................... (44,280) (81,077) (140,058) (217,853) (117,841) (162,342)
-------- -------- -------- -------- --------- ---------
Increase (decrease) in shares....... 121,584 333,913 (25,440) 268,661 66,965 216,102
======== ======== ======== ======== ========= =========
</TABLE>
P-54
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD BOND INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares...................... 60,430 239,540 709,078 1,357,028 94,828 192,283
Shares issued in payment
of dividends..................... -- 1,313 -- 136,132 -- 58,547
Shares issued in payment
of gain distributions............ -- 22,955 -- 16,336 -- 68,771
-------- -------- -------- --------- --------- ---------
Total............................... 60,430 263,808 709,078 1,509,496 94,828 319,601
-------- -------- -------- --------- --------- ---------
Shares redeemed..................... (66,747) (144,243) (206,078) (547,725) (112,528) (342,394)
-------- -------- -------- --------- --------- ---------
Increase (decrease) in shares....... (6,317) 119,565 503,000 961,771 (17,700) (22,793)
======== ======== ======== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
LARGE-CAP SMALL-CAP
VALUE VALUE
PORTFOLIO PORTFOLIO
---------- ----------
5/1/98* 5/1/98*
TO TO
6/30/98 6/30/98
(unaudited) (unaudited)
----------- -----------
<S> <C> <C>
Sale of shares...................... 99,895 96,465
Shares redeemed..................... (726) (1,597)
------ ------
Increase in shares.................. 99,169 94,868
====== ======
<FN>
- -------------------
* Commencement of operations.
</FN>
</TABLE>
8. COMMITTED LINE OF CREDIT --Effective July 1, 1998, Communications and
Information, Frontier, Global Growth Opportunities, Global Smaller Companies,
Global Technology, International, and High-Yield Bond Portfolios terminated
their $12 million committed line of credit facility and all of the Portfolios
except the Cash Management Portfolio, entered into a joint $800 million
committed line of credit that is shared by substantially all funds in the
Seligman Group of Investment Companies. Each Portfolio's borrowings are limited
to 10% (5% for the Seligman Henderson Portfolios) of its net assets. Borrowings
pursuant to the credit facility are subject to interest at a rate equal to the
overnight federal funds rate plus 0.50% on an overnight basis. Each Portfolio
incurs a commitment fee of 0.08% per annum on its share of 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 expires one year from the date of the agreement but is
renewable with the consent of the participating banks. To date, none of the
Portfolios have borrowed from the credit facility.
9. SUBSEQUENT EVENT -- On July 15, 1998, MBL Life entered into an agreement with
Anchor National Life Insurance Company ("Anchor National"), a subsidiary of
SunAmerica, Inc., pursuant to which Anchor National will purchase the individual
life and individual and group annuity businesses of MBL Life (the
"Acquisition"). It is anticipated that the Acquisition will occur no later than
December 31, 1998; however, it is subject to certain judicial and regulatory
approvals. MBL Life has indicated that, as part of the approval process, it
intends to seek a court order to terminate the Mutual Benefit Plan.
This termination, which under the proposed court order would occur six months
after the acquisition, will cause the Mutual Benefit Plan assets to be withdrawn
from the Fund. At June 30, 1998, the Mutual Benefit Plan assets held in the Fund
were as follows:
Bond Portfolio $ 1,608,844
Capital Portfolio 5,105,156
Cash Management Portfolio 856,332
Common Stock Portfolio 14,359,513
Income Portfolio 3,801,428
Because the Manager currently limits the expenses incurred by these
portfolios, the withdrawal of Mutual Benefit Plan assets is not expected to have
a significant impact on the ratio of expenses to average net assets for any of
these portfolios.
P-55
<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.
<TABLE>
<CAPTION>
BOND PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED 6/30/98 -----------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $10.240 $ 9.890 $10.440 $ 9.270 $10.110 $10.660
------- ------- ------- ------- ------- -------
Net investment income............................. 0.294 0.538 0.565 0.605 0.499 0.713
Net realized and unrealized gain (loss)
on investments.................................. 0.096 0.350 (0.552) 1.171 (0.841) 0.142
------- ------- ------- ------- ------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS...................................... 0.390 0.888 0.013 1.776 (0.342) 0.855
Dividends paid.................................... -- (0.538) (0.563) (0.606) (0.498) (0.711)
Distributions from net realized gain.............. -- -- -- -- -- (0.694)
------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSET VALUE........ 0.390 0.350 (0.550) 1.170 (0.840) (0.550)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $10.630 $10.240 $ 9.890 $10.440 $ 9.270 $10.110
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 3.81% 8.98% 0.09% 19.18% (3.39)% 7.98%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.60%+ 0.60% 0.60% 0.60% 0.60% 0.74%
Net investment income to average net assets....... 5.73%+ 6.22% 5.97% 6.22% 5.12% 5.41%
Portfolio turnover................................ 52.17% 170.12% 199.74% 114.42% 237.23% 33.21%
NET ASSETS, END OF PERIOD (000s omitted).......... $6,631 $7,232 $5,015 $4,497 $3,606 $3,775
Without management fee waiver and
expense reimbursement:++
Net investment income per share................ $0.284 $0.515 $ 0.545 $0.571 $0.430 $0.675
Ratios:
Expenses to average net assets................. 0.81%+ 0.83% 0.79% 0.99% 1.31% 1.07%
Net investment income to average net assets.... 5.52%+ 5.99% 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-56
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED 6/30/98 -----------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $18.100 $16.010 $14.910 $12.700 $14.950 $16.980
------- ------- ------- ------- ------- -------
Net investment income............................. 0.015 0.029 0.043 0.048 0.015 0.021
Net realized and unrealized gain (loss)
on investments.................................. 2.505 3.350 2.121 3.385 (0.699) 1.928
------- ------- ------- ------- ------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS...................................... 2.520 3.379 2.164 3.433 (0.684) 1.949
Dividends paid.................................... -- (0.028) (0.042) (0.047) (0.018) (0.021)
Distributions from net realized gain.............. -- (1.261) (1.022) (1.176) (1.548) (3.958)
------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSET VALUE........ 2.520 2.090 1.100 2.210 (2.250) (2.030)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $20.620 $18.100 $16.010 $14.910 $12.700 $14.950
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE:............ 13.92% 21.31% 14.51% 27.17% (4.59)% 11.65%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.60%+ 0.60% 0.59% 0.60% 0.60% 0.71%
Net investment income to average net assets....... 0.15%+ 0.16% 0.29% 0.32% 0.10% 0.09%
Portfolio turnover................................ 56.06% 93.97% 88.78% 122.20% 67.39% 65.30%
NET ASSETS, END OF PERIOD (000s omitted).......... $23,513 $20,400 $14,313 $9,294 $5,942 $5,886
Without management fee waiver:++
Net investment income (loss) per share......... $0.015 $0.026 $0.035 $(0.036) $(0.003)
Ratios:
Expenses to average net assets................. 0.60%+ 0.62% 0.71% 0.96% 0.83%
Net investment income (loss) to average
net assets................................... 0.15%+ 0.14% 0.21% (0.26)% (0.03)%
</TABLE>
<TABLE>
<CAPTION>
CASH MANAGEMENT PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED 6/30/98 -----------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- -------
<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............................. 0.026 0.054 0.053 0.055 0.040 0.030
Dividends paid.................................... (0.026) (0.054) (0.053) (0.055) (0.040) (0.030)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 2.68% 5.52% 5.43% 5.60% 4.03% 3.00%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... -- -- -- -- -- --
Net investment income to average net assets....... 5.34% 5.39% 5.30% 5.48% 3.98% 2.96%
NET ASSETS, END OF PERIOD (000s omitted).......... $9,213 $8,635 $9,755 $7,800 $3,230 $3,102
Without management fee waiver and
expense reimbursement:++
Net investment income per share................ $0.023 $0.046 $0.047 $0.046 $0.025 $0.019
Ratios:
Expenses to average net assets................. 0.70%+ 0.79% 0.63% 0.87% 1.48% 1.07%
Net investment income to average net assets.... 4.64%+ 4.60% 4.67% 4.61% 2.50% 1.89%
<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-57
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED 6/30/98 -----------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $16.280 $15.920 $15.440 $13.780 $14.980 $15.600
------- ------- ------- ------- ------- -------
Net investment income............................. 0.134 0.328 0.334 0.349 0.365 0.392
Net realized and unrealized gain (loss)
on investments.................................. 2.006 3.013 2.789 3.400 (0.356) 1.479
------- ------- ------- ------- ------- -------
INCREASE FROM INVESTMENT OPERATIONS............... 2.140 3.341 3.123 3.749 0.009 1.871
Dividends paid.................................... -- (0.316) (0.336) (0.345) (0.385) (0.394)
Distributions from net realized gain.............. -- (2.665) (2.307) (1.744) (0.824) (2.097)
------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSET VALUE........ 2.140 0.360 0.480 1.660 (1.200) (0.620)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $18.420 $16.280 $15.920 $15.440 $13.780 $14.980
======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 13.14% 21.31% 20.08% 27.28% 0.04% 11.94%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.51%+ 0.53% 0.53% 0.54% 0.60% 0.55%
Net investment income to average net assets....... 1.57%+ 1.92% 1.99% 2.42% 2.45% 2.10%
Portfolio turnover................................ 33.36% 80.13% 50.33% 55.48% 15.29% 10.70%
NET ASSETS, END OF PERIOD (000s omitted).......... $58,442 $50,737 $37,168 $28,836 $20,168 $21,861
Without management fee waiver:++
Net investment income per share................ $0.361
Ratios:
Expenses to average net assets................. 0.62%
Net investment income to average net assets.... 2.43%
</TABLE>
<TABLE>
<CAPTION>
COMMUNICATIONS AND INFORMATION PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, 10/11/94*
6/30/98 ------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94
----------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $13.090 $14.690 $13.500 $10.440 $10.000
------- ------- ------- ------- -------
Net investment loss............................... (0.036) -- -- -- (0.016)
Net realized and unrealized gain
on investments.................................. 1.756 3.049 1.190 4.015 0.456
------- ------- ------- ------- -------
INCREASE FROM INVESTMENT OPERATIONS............... 1.720 3.049 1.190 4.015 0.440
Dividends paid.................................... -- -- -- -- --
Distributions from net realized gain.............. -- (4.649) -- (0.955) --
------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSET VALUE........ 1.720 (1.600) 1.190 3.060 0.440
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.................... $14.810 $13.090 $14.690 $13.500 $10.440
======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: 13.14% 22.22% 8.81% 38.55% 4.40%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.................... 0.87%+ 0.87% 0.87% 0.95% 0.95%+
Net investment loss to average net assets......... 0.50)%+ (0.49)% (0.32)% (0.89)% (0.95)%+
Portfolio turnover................................ 62.86% 277.14% 167.20% 96.62% --
NET ASSETS, END OF PERIOD (000s omitted).......... $104,421 $87,633 $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 income to average net assets.... 13.96%+
<FN>
- ---------------
* 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-58
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL GROWTH
FRONTIER PORTFOLIO OPPORTUNITIES PORTFOLIO
-------------------------------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, 10/11/94* ENDED YEAR 5/1/96**
PER SHARE OPERATING 6/30/98 ----------------------------- TO 6/30/98 ENDED TO
PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94 (unaudited) 12/31/97 12/31/96
----------- ------- ------- ------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD......................... $15.780 $14.980 $13.560 $10.580 $10.000 $11.030 $ 9.910 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss)........ (0.037) -- 0.001 (0.001) (0.012) 0.018 0.006 0.008
Net realized and unrealized gain
on investments................... 1.367 2.386 3.220 3.512 0.592 2.133 1.799 0.018
Net realized and unrealized loss
on foreign currency transactions. -- -- -- -- -- (0.021) (0.561) (0.104)
------- ------- ------- ------- ------- ------- ------- -------
INCREASE (DECREASE) FROM
INVESTMENT OPERATIONS............ 1.330 2.386 3.221 3.511 0.580 2.130 1.244 (0.078)
Dividends paid...................... -- -- -- -- -- -- -- (0.012)
Distributions from net realized gain -- (1.586) (1.801) (0.531) -- -- (0.124) --
------- ------- ------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN
NET ASSET VALUE.................. 1.330 0.800 1.420 2.980 0.580 2.130 1.120 (0.090)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...... $17.110 $15.780 $14.980 $13.560 $10.580 $13.160 $11.030 $ 9.910
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON
NET ASSET VALUE: 8.43% 16.33% 23.93% 33.28% 5.80% 19.31% 12.57% (0.78)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets...... 0.91%+ 0.89% 0.92% 0.95% 0.95%+ 1.40%+ 1.40% 1.40%+
Net investment income (loss) to
average net assets............... 0.47)%+ (0.49)% (0.37)% (0.55)% (0.70)%+ 0.30%+ 0.01% 0.37%+
Portfolio turnover.................. 42.56% 101.68% 119.74% 106.48% -- 18.45% 77.85% 12.99%
NET ASSETS, END OF PERIOD
(000s omitted)................... $47,851 $42,973 $31,672 $12,476 $169 $8,104 $5,449 $1,590
Without management fee waiver and
expense reimbursement:++
Net investment loss per share.... $(0.019) $(1.319) -- $(0.072) $(0.255)
Ratios:
Expenses to average net assets... 1.37% 40.47%+ 1.71%+ 2.11% 6.04%+
Net investment loss to
average net assets............. (0.97)% (40.22)%+ (0.01)%+ (0.70)% (4.27)%+
<FN>
- ----------------
* Commencement of investment operations.
** 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-59
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES PORTFOLIO GLOBAL TECHNOLOGY PORTFOLIO
-------------------------------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, 10/11/94* ENDED YEAR 5/1/96**
PER SHARE OPERATING 6/30/98 ----------------------------- TO 6/30/98 ENDED TO
PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94 (unaudited) 12/31/97 12/31/96
----------- ------- ------- ------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD......................... $12.980 $12.870 $11.670 $10.310 $10.000 $10.590 $10.320 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss)........ 0.006 0.016 0.022 0.051 0.058 (0.019) 0.012 (0.004)
Net realized and unrealized gain
on investments................... 2.222 1.166 2.305 2.037 0.266 2.318 2.151 0.305
Net realized and unrealized gain
(loss) on foreign currency
transactions..................... (0.128) (0.747) (0.158) (0.301) 0.029 (0.019) (0.194) 0.099
------- ------- ------- ------- ------- ------- ------- -------
INCREASE FROM
INVESTMENT OPERATIONS............ 2.100 0.435 2.169 1.787 0.353 2.280 1.969 0.400
Dividends paid...................... -- (0.017) (0.018) (0.052) (0.043) -- (0.012) --
Distributions from net realized gain -- (0.308) (0.951) (0.375) -- -- (1.687) (0.080)
------- ------- ------- ------- ------- ------- ------- -------
NET INCREASE IN
NET ASSET VALUE.................. 2.100 0.110 1.200 1.360 0.310 2.280 0.270 0.320
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...... $15.080 $12.980 $12.870 $11.670 $10.310 $12.870 $10.590 $10.320
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON
NET ASSET VALUE: 16.18% 3.43% 18.66% 17.38% 3.53% 21.53% 19.53% 4.01%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets...... 1.40%+ 1.40% 1.40% 1.39% 1.20%+ 1.40%+ 1.40% 1.40%+
Net investment income (loss) to
average net assets............... 0.08%+ 0.24% 0.23% 0.64% 3.14%+ (0.34)%+ 0.12% 0.60%+
Portfolio turnover.................. 26.43% 64.81% 62.31% 55.65% -- 36.94% 167.36% 45.04%
NET ASSETS, END OF PERIOD
(000s omitted)................... $23,442 $20,505 $16,876 $4,837 $132 $5,345 $3,686 $1,364
Without management fee waiver and
expense reimbursement:++
Net investment income (loss)
per share...................... $(0.001) $0.006 $(0.044) $(0.051) $(1.225) $(0.046) $(0.070) $(0.202)
Ratios:
Expenses to average net assets... 1.49%+ 1.56% 1.90% 3.84% 37.25%+ 1.84%+ 2.10% 4.71%+
Net investment income (loss) to
average net assets............. (0.01)%+ 0.08% (0.27)% (1.81)% (32.91)%+ (0.78)%+ (0.58)% (2.71)%+
<FN>
- --------------
* Commencement of investment operations.
** 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-60
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO HIGH-YIELD BOND PORTFOLIO
---------------------------------------------------- ---------------------------------------
SIX MONTHS SIX MONTHS YEAR ENDED
PER SHARE OPERATING ENDED YEAR ENDED DECEMBER 31, 5/3/93* ENDED DECEMBER 31, 5/1/95*
6/30/98 -------------------------------- TO 6/30/98 --------------- TO
PERFORMANCE: (unaudited) 1997 1996 1995 1994 12/31/93 (unaudited) 1997 1996 12/31/95
--------- ------ ------ ------ ------ ------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD........................ $13.540 $12.960 $12.390 $11.340 $11.370 $10.000 $11.870 $11.190 $10.500 $10.000
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net investment income............... 0.101 0.026 0.074 0.154 0.131 0.021 0.556 0.908 0.768 0.218
Net realized and unrealized gain
(loss) on investments............ 2.444 2.110 1.124 0.896 (0.306) 1.518 0.134 0.780 0.766 0.519
Net realized and unrealized gain
(loss) on foreign currency
transactions..................... (0.095) (1.057) (0.323) 0.236 0.32 (0.099) -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
INCREASE FROM INVESTMENT
OPERATIONS....................... 2.450 1.079 0.875 1.286 0.150 1.440 0.690 1.688 1.534 0.737
Dividends paid...................... -- (0.027) (0.068) (0.151) (0.064) (0.053) -- (0.900) (0.766) (0.219)
Distributions from net realized gain -- (0.472) (0.237) (0.085) (0.116) (0.017) -- (0.108) (0.078) (0.018)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET
ASSET VALUE...................... 2.450 0.580 0.570 1.050 (0.030) 1.370 0.690 0.680 0.690 0.500
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...... $15.990 $13.540 $12.960 $12.390 $11.340 $11.370 $12.560 $11.870 $11.190 $10.500
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN BASED ON
NET ASSET VALUE: 18.09% 8.35% 7.08% 11.34% 1.32% 14.40% 5.81% 15.09% 14.62% 7.37%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets...... 1.40%+ 1.40% 1.40% 1.35% 1.20% 1.20%+ 0.70%+ 0.70% 0.70% 0.70%+
Net investment income to
average net assets............... 1.35%+ 0.43% 0.70% 1.01% 1.17% 1.30%+ 9.08%+ 9.61% 9.77% 7.46%+
Portfolio turnover.................. 35.25% 89.43% 48.53% 41.40% 47.34% 2.82% 30.34% 74.54% 117.01% 67.55%
NET ASSETS, END OF PERIOD
(000s omitted)................... $10,746 $9,182 $7,242 $4,183 $1,776 $648 $30,951 $23,268 $11,176 $3,009
Without management fee waiver and
expense reimbursement:++
Net investment income (loss)
per share........................ $0.070 $(0.069) $(0.042) $0.001 $(0.419) $(1.004) $0.555 $0.897 $0.747 $0.117
Ratios:
Expenses to average net assets... 1.82%+ 2.07% 2.30% 3.40% 6.12% 17.94%+ 0.76%+ 0.79% 0.88% 4.38%+
Net investment income (loss)
average net assets............... 0.93%+ (0.24)% (0.20)% (1.04)% (3.75)% (15.44)%+ 9.02%+ 9.52% 9.59% 3.78%+
<FN>
- ---------------
* 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-61
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
6/30/98 ----------------------------------------------------
PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993
---------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................... $10.800 $10.520 $10.560 $9.970 $11.380 $11.390
------- ------ ------- ------ ------- -------
Net investment income .................................. 0.216 0.556 0.579 0.604 0.689 0.828
Net realized and unrealized gain (loss) on investments.. 0.394 0.907 0.126 1.187 (1.369) 0.576
------- ------ ------- ------ ------- -------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ......... 0.610 1.463 0.705 1.791 (0.680) 1.404
Dividends paid ......................................... -- (0.544) (0.579) (0.604) (0.730) (0.828)
Distributions from net realized gain ................... -- (0.639) (0.166) (0.597) -- (0.586)
------- ------ ------- ------ ------- -------
NET INCREASE (DECREASE) IN NET ASSET VALUE ............. 0.610 0.280 (0.040) 0.590 (1.410) (0.010)
------- ------ ------- ------ ------- -------
NET ASSET VALUE, END OF PERIOD ......................... $11.410 $10.800 $10.520 $10.560 $9.970 $11.380
======= ======= ======= ======= ====== =======
TOTAL RETURN BASED ON NET ASSET VALUE:.................. 5.65% 14.02% 6.66% 17.98% (5.96)% 12.37%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......................... 0.60%+ 0.60% 0.59% 0.60% 0.60% 0.64%
Net investment income to average net assets ............ 3.91%+ 4.71% 5.37% 5.55% 6.34% 6.40%
Portfolio turnover ..................................... 44.96% 96.99% 19.59% 51.22% 29.76% 38.38%
NET ASSETS, END OF PERIOD (000s omitted) ............... $14,420 $13,835 $13,717 $12,619 $10,050 $11,220
Without management fee waiver:++
Net investment income per share ..................... $0.216 $0.553 $0.602 $0.670 $0.826
Ratios:
Expenses to average net assets ...................... 0.61%+ 0.63% 0.62% 0.77% 0.65%
Net investment income to average net assets ......... 3.90%+ 4.68% 5.53% 6.17% 6.39%
LARGE-CAP SMALL-CAP
VALUE VALUE
PORTFOLIO PORTFOLIO
5/1/98* 5/1/98*
TO TO
6/30/98 6/30/98
PER SHARE OPERATING PERFORMANCE: (unaudited) (unaudited)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ............. $10.000 $10.000
------- -------
Net investment income (loss)...................... 0.004 (0.007)
Net realized and unrealized loss on investments .. (0.084) (0.843)
------- -------
DECREASE FROM INVESTMENT OPERATIONS .............. (0.080) (0.850)
Dividends paid ................................... -- --
Distributions from net realized gain ............. -- --
------- -------
NET DECREASE IN NET ASSET VALUE .................. (0.080) (0.850)
------- -------
NET ASSET VALUE, END OF PERIOD ................... $9.920 $9.150
======= =======
TOTAL RETURN BASED ON NET ASSET VALUE:............ (0.080)% (8.50)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................... 0.80%+ 1.00%+
Net investment income (loss) to average net assets 0.31%+ (0.60)%+
Portfolio turnover ............................... 4.23% 5.13%
NET ASSETS, END OF PERIOD (000s omitted) ......... $1,130 $1,003
Without expense reimbursement:++
Net investment loss per share ................. $(0.051) $(0.062)
Ratios: .......................................
Expenses to average net assets ................ 5.52%+ 6.14%+
Net investment loss to average net assets...... (4.41)%+ (5.74)%+
<FN>
- ----------------
* Commencement of operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses or waived management
fees for certain periods presented.
See Notes to Financial Statements.
</FN>
</TABLE>
P-62
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
PROXY RESULTS
- ------------------------------------------------------------------------------
Shareholders of the Seligman Henderson Portfolios of Seligman Portfolios, Inc.
voted on the following proposals at a Special Meeting of Shareholders held on
June 30, 1998, in New York, New York. All proposals were approved. The
description of each proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
---------- ---------- ----------
<S> <C> <C> <C>
Approval of an interim subadvisory agreement
between J. & W. Seligman & Co. Incorporated
and Seligman Henderson Co.:
Seligman Henderson Global Growth
Opportunities Portfolio 525,499 14,528 23,485
Seligman Henderson Global Smaller
Companies Portfolio 1,498,340 11,945 47,863
Seligman Henderson Global
Technology Portfolio 357,448 1,942 26,231
Seligman Henderson International
Portfolio 666,380 926 10,510
Approval of a new subadvisory agreement
between J. & W. Seligman & Co. Incorporated
and Henderson Investment Management
Limited, effective July 1, 1998:
Seligman Henderson Global Growth
Opportunities Portfolio 502,196 16,497 44,819
Seligman Henderson Global Smaller
Companies Portfolio 1,450,810 14,829 92,509
Seligman Henderson Global
Technology Portfolio 346,676 73 38,872
Seligman Henderson International
Portfolio 657,730 2,582 17,504
</TABLE>
P-63
<PAGE>
SELIGMAN PORTFOLIOS, INC.
- ------------------------------------------------------------------------------
BOARD OF DIRECTORS
- ------------------------------------------------------------------------------
JOHN R. GALVIN 2, 4
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, Raytheon Company
ALICE S. ILCHMAN 3, 4
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
FRANK A. MCPHERSON 2, 4
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
JOHN E. MEROW 2, 4
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Trustee, The New York and Presbyterian Hospital
BETSY S. MICHEL 2, 4
Trustee, The Geraldine R. Dodge Foundation
Chairman of the Board of Trustees, St. George's School
WILLIAM C. MORRIS 1
Chairman
Chairman of the Board,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
JAMES C. PITNEY 3, 4
Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
JAMES Q. RIORDAN 3, 4
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Public Broadcasting Service
RICHARD R. SCHMALTZ 1
Managing Director, Director of Investments,
J. & W. Seligman & Co. Incorporated
Trustee Emeritus, Colby College
ROBERT L. SHAFER 3, 4
Retired Vice President, Pfizer Inc.
JAMES N. WHITSON 2, 4
Director and Consultant,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, CommScope, Inc.
BRIAN T. ZINO 1
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
Director Emeritus
FRED E. BROWN
Director and Consultant,
J. & W. Seligman & Co. Incorporated
- -----------------
Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
- ------------------------------------------------------------------------------
EXECUTIVE OFFICERS
- ------------------------------------------------------------------------------
WILLIAM C. MORRIS
Chairman
BRIANT.ZINO
President
BRIAN ASHFORD-RUSSELL
Vice President
DANIEL J. CHARLESTON
Vice President
IAIN C. CLARK
Vice President
NITIN MEHTA
Vice President
ARSEN MRAKOVCIC
Vice President
MARION S. SCHULTHEIS
Vice President
CHARLES C. SMITH, JR.
Vice President
LAWRENCE P. VOGEL
Vice President
PAUL H. WICK
Vice President
GARY S. ZELTZER
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
Henderson Investment
Management Limited
3 Finsbury Avenue
London EC2M 2PA
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-64
