Supplement, dated March 28, 2000,
to the Statement of Additional Information, dated May 1, 1999,
as supplemented on December 15, 1999,
of Seligman Portfolios, Inc. (the "Fund")
Effective March 28, 2000, the following section is added at the bottom of page
26 of the Fund's Statement of Additional Information following the section
entitled "Taxation of the Fund."
Calculation of Performance Data
From time to time the average annual total return and other total return data,
as well as yield, of one or more of the Portfolios may be included in
advertisements or information furnished to present or prospective Contract
owners. Total return and yield figures are based on each Portfolio's historical
performance and are not intended to indicate future performance. Average annual
total return and yield are determined in accordance with formulas specified by
the SEC.
The average annual total returns for each Portfolio are computed by assuming a
hypothetical initial investment of $1,000 in the Portfolio, and assuming that
all of the dividends and capital gain distributions paid by the Portfolio, if
any, are reinvested over the relevant time period. It is then assumed that at
the end of each period, the entire amount is redeemed. The average annual total
return is then calculated by calculating the annual rate required for the
initial payment to grow to the amount which would have been received upon such
redemption (i.e., the average annual compound rate of return).
Annualized yield quotations (with respect to Seligman Bond Portfolio and
Seligman High-Yield Bond Portfolio) are computed by dividing each Portfolio's
net investment income per share earned during the 30-day period by the offering
price per share on the last day of the period. Income is computed by totaling
the dividends and interest earned on all portfolio investments during the 30-day
period and subtracting from that amount the total of all recurring expenses
incurred during the period. The 30-day yield is then annualized on a
bond-equivalent basis assuming semi-annual reinvestment and compounding of net
investment income. The annualized yield for the 30-day period ended December 31,
1998 for Seligman Bond Portfolio and Seligman High-Yield Bond Portfolio was
5.48% and 10.81%, respectively. The average number of shares of Seligman Bond
Portfolio and Seligman High-Yield Bond Portfolio was 675,183 and 2,600,820,
respectively, which was the average daily number of shares outstanding during
the 30-day period that were eligible to receive dividends. Yield quotations may
be of limited use for comparative purposes because they do not reflect charges
imposed at the Account level which, if included, would decrease the yield.
The average annual total returns for each of the Portfolios (except Seligman
Cash Management Portfolio and Seligman Large-Cap Growth Portfolio, which
commenced operations on May 1, 1999) for the one-, five- and ten-year periods
ended December 31, 1998 (or for the period the Portfolio has been in operation)
are presented below. The returns for periods of less than one year are not
annualized. The average annual total return quotations may be of limited use for
comparative purposes because they do not reflect charges imposed at the Account
level which, if included, would decrease average annual total return.
<PAGE>
<TABLE>
<CAPTION>
SEC Average Annual Returns
Inception Date
(if less than 10 years) One Year Five Years Ten Years
<S> <C> <C> <C> <C>
Seligman Bond Portfolio 8.20% 6.33% 7.43%
Seligman Capital Portfolio 22.19 15.54 15.98
Seligman Common Stock Portfolio
24.16 18.16 16.55
Seligman Communications
and Information Portfolio 10/11/94 36.49 25.67*
Seligman Frontier Portfolio 10/11/94 (1.46) 17.88*
Seligman Global Growth Portfolio 05/1/96 21.60 12.16*
Seligman Global Smaller
Companies Portfolio 10/11/94 6.58 11.60*
Seligman Global Technology
Portfolio 05/1/96 36.80 22.02*
Seligman International Growth
Portfolio 05/3/93 15.81 8.67 10.20*
Seligman High-Yield Bond Portfolio
05/1/95 1.02 10.25*
Seligman Income Portfolio 7.76 7.77 10.29
Seligman Large-Cap Value Portfolio
05/1/98 (0.26)*
Seligman Small-Cap Value Portfolio
05/1/98 (17.00)*
* Since inception.
</TABLE>
The current yield of Seligman Cash Management Portfolio is computed by
determining the net change exclusive of capital changes in the value of a
hypothetical pre-existing account having a balance of 1 share at the beginning
of a seven-day calendar period, dividing the net change in account value by the
value of the account at the beginning of the period, and multiplying the return
over the seven-day period by 365/7. For purposes of the calculation, net change
in account value reflects the value of additional shares purchased with
dividends from the original share and dividends declared on both the original
share and any such additional shares, but does not reflect realized gains or
losses or unrealized appreciation or depreciation. Effective yield is computed
by annualizing the seven-day return with all dividends reinvested in additional
Portfolio shares.
The following are examples of the yield calculations for Seligman Cash
Management Portfolio for the seven-day period ended December 31, 1998. Yield
quotations may be of limited use for comparative purposes because they do not
reflect charges imposed at the Account level which, if included, would decrease
the yield.
<PAGE>
<TABLE>
<S> <C>
Total dividends per share from net investment income
(seven days ended December 31, 1998) $0.000946
Annualized (365 day basis) 0.049327
Average net asset value per share 1.000
Annualized historical net yield per share (seven
days ended December 31, 1998)* 4.93%
Effective yield (seven days ended December 31, 1998)** 5.04%
Weighted average life to maturity of investments was 60 days at December 31,
1998
______________
* This represents the annualized average net investment income per share for
the seven days ended December 31, 1998.
** Annualized average of net investment income for the same period with
dividends reinvested.
</TABLE>
From time to time, reference may be made in advertising or promotional material
to performance information, including mutual fund rankings, prepared by Lipper
Analytical Services, Inc., an independent reporting service which monitors the
performance of mutual funds. In calculating the total return of the Portfolio's,
the Lipper analysis assumes investment of all dividends and distributions paid
but does not take into account applicable sales charges. Each Portfolio may also
refer in advertisements in other promotional material to articles, comments,
listings and columns in the financial press pertaining to the Portfolio's
performance. Examples of such financial and other press publications include
BARRON'S, BUSINESS WEEK, CDA/WIESENBERGER MUTUAL FUNDS INVESTMENT REPORT,
CHRISTIAN SCIENCE MONITOR, FINANCIAL PLANNING, FINANCIAL TIMES, FINANCIAL WORLD,
FORBES, FORTUNE, INDIVIDUAL INVESTOR, INVESTMENT ADVISOR, INVESTORS BUSINESS
DAILY, KIPLINGER'S, LOS ANGELES TIMES, MONEY MAGAZINE, MORNINGSTAR, INC.,
PENSION AND INVESTMENTS, SMART MONEY, THE NEW YORK TIMES, THE WALL STREET
JOURNAL, USA TODAY, U.S. NEWS AND WORLD REPORT, WORTH MAGAZINE, WASHINGTON POST
and YOUR MONEY.
A Portfolio's advertising or promotional material may make reference to the
Portfolio's "Beta," "Standard Deviation," or "Alpha." Beta measures the
volatility of the Portfolio, as compared to that of the overall market. Standard
deviation measures how widely the Portfolio's performance has varied from its
average performance, and is an indicator of the Portfolio's potential for
volatility. Alpha measures the difference between the returns of the Portfolio
and the returns of the market, adjusted for volatility.
