SELIGMAN
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SELECT
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MUNICIPAL
FUND, INC.
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First Quarter Report
March 31, 1995
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To the Stockholders
We are pleased to provide you with Seligman Select Municipal Fund's First
Quarter Report.
During the past three months, your Fund paid Common Stockholders federally
tax-free monthly dividends of $0.07 per share on January 30, February 28, and
March 28, for a total of $0.21 per share. The annualized distribution rate based
on current net asset value was 6.94% at March 31, which is equivalent to a
taxable yield of 11.49% based on the maximum federal tax rate of 39.6%.
Preferred Stockholders were paid dividends at annual rates ranging from 3.86% to
4.80%. Earnings on your Fund's assets in excess of the preferred dividend
requirements constituted dividend income for Common Stockholders.
At March 31, your Fund's net asset value was $12.11 per share, compared to
$11.54 at December 31, 1994, and your Fund's market price was $12.125 per share,
compared to $10.50 at December 31, 1994. For the first quarter, total return
based on net asset value was 6.80%, and based on market price was 17.53% (Total
return reflects change in price, net asset value or market, as applicable, and
assumes that any distributions paid within the period are reinvested in
additional shares.)
The municipal market rally intensified going into 1995 as a direct result of
the dramatic decline in new issue volume. Issuance is generally light at the
start of a new year but begins to pick up after the month of January. This year,
however, volume is not expected to pick up. The Federal Reserve Board's decision
on February 1 to raise the federal funds rate again further contributed to the
improvement in long-term yields. This action had a positive effect on investor
psychology by reinforcing expectations that the Fed ultimately will achieve its
goal of stable inflation and moderate economic growth. By the end of the first
quarter, long-term municipal yields (as measured by the Bond Buyer 20-Bond
General Obligation Index) had declined from 6.71% on December 29, 1994, to
6.07%, exactly where they stood on March 31, 1994.
Looking forward, your Manager is optimistic about the prospects for the
municipal market. The lack of supply of new issue municipal bonds should
continue to contribute to the positive performance of the municipal bond market.
Additionally, a moderating economy and a vigilant Federal Reserve Board should
keep inflation in check and prevent a repeat of the dramatic interest rate
increases that characterized most of 1994.
Seligman Select Municipal Fund's Fifth Annual Meeting of Stockholders will be
held on May 18, 1995, at the Powerhouse Theater of the Milwaukee Repertory
Theater, 108 East Wells Street, Milwaukee, WI 53202. We encourage those
Stockholders who are able to attend to do so.
For any additional information about Seligman Select Municipal Fund, or your
investment in its shares, please write or call using the toll-free telephone
numbers listed on the back panel of this report.
By order of the Board of Directors,
/s/William C. Morris
William C. Morris
Chairman
/s/Thomas G. Moles
Thomas G. Moles
President
April 28, 1995
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Portfolio of Investments (unaudited)
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Face Ratings
State Amount Municipal Bonds Moody's/S&P Market Value
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<S> <C> <C> <C> <C>
Alaska-- 4.5% $10,000,000 Alaska Housing Finance Corp. (Collateralized
Home Mortgage Rev.), 7.65% due 6/1/2024 ........... Aaa/AAA $ 10,541,600
Arizona-- 0.9% 2,000,000 Phoenix Street and Highway User Rev., 6 1/2% due
7/1/2009 .......................................... NR/AA 2,119,280
California-- 2.5% 6,000,000 San Joaquin Hills Transportation Corridor Agency
Senior Lien Toll Road Rev. (Orange County),
6 3/4% due 1/1/2032 ................................ NR/NR 5,840,460
Delaware-- 3.1% 6,500,000 Delaware Economic Development Authority
Exempt Facilities Rev. (Delmarva Power and
Light Co. Project), 7.60% due 3/1/2020* ........... Aaa/AAA 7,077,330
District of 9,000,000 Metropolitan Washington, D.C. Airports Authority
Columbia-- 7.7% Airport System Rev., 7.60% due 10/1/2014* ......... A1/AA- 9,493,110
7,500,000 District of Columbia G.O.'s, 7 1/2% due 6/1/2009 ..... Aaa/AAA 8,342,700
Florida-- 8.2% 5,700,000 Brevard County Utility Rev., 7 3/8% due 3/1/2014 ..... Aaa/AAA 6,203,709
1,105,000 Brevard County Utility Rev., 7 3/8% due 3/1/2014 ..... Aaa/AAA 1,185,411
3,085,000 Florida Housing Finance Agency (Home Ownership
Rev.), 7.90% due 3/1/2022* ........................ Aaa/NR 3,217,871
3,000,000 Florida Municipal Power Agency Rev. (St. Lucie
Project), 5 1/2% due 10/1/2012 ..................... Aaa/AAA 2,898,630
5,325,000 Orange County Housing Finance Authority
(Mortgage Rev.), 7.80% due 10/1/2022* ............. Aaa/NR 5,665,853
Illinois-- 2.3% 5,000,000 Chicago O'Hare International Airport International
Terminal Special Rev., 7 5/8% due 1/1/2010* ........ Aaa/AAA 5,414,900
Indiana-- 2.3% 5,000,000 Indiana Employment Development Commission
Environmental Rev. (Public Service Company of
Indiana Inc.), 7 1/2% due 3/15/2015* ............... Aaa/AAA 5,385,050
Louisiana-- 5.1% 10,000,000 Louisiana Public Facilities Authority Hospital Rev.
(Southern Baptist Hospitals, Inc. Project), 8%
due 5/15/2012 ..................................... NR/AAA 11,775,900
Massachusetts -- 6.9% 5,370,000 Massachusetts Housing Finance Agency (Multi-
Family Residential Development Rev.), 7.65%
due 2/1/2028* ..................................... Aaa/AAA 5,620,618
5,285,000 Massachusetts Port Authority Rev., 7 3/4% due
7/1/2018* ......................................... Aaa/AAA 5,434,248
4,500,000 Massachusetts State G.O.'s Consolidated Loan,
7 3/8% due 12/1/2008 ............................... Aaa/AAA 4,949,370
Nebraska-- 1.8% 4,050,000 Nebraska Investment Finance Authority (Single
Family Mortgage Rev.), 8 1/8% due 8/15/2038* ....... Aaa/AAA 4,263,354
Nevada-- 5.5% 7,000,000 Clark County Industrial Development Rev. (Nevada
Power Company Project), 7.80% due 6/1/2020* ....... Aaa/AAA 7,632,030
5,000,000 Washoe County Water Facility Rev. (Sierra Pacific
Power Company Project), 6.65% due 6/1/2017* ....... Aaa/AAA 5,171,700
New Hampshire -- 6.0% 6,365,000 New Hampshire Housing Finance Authority (Single
Family Residential Mortgage Rev.), 7.90% due
7/1/2022* ......................................... Aa/A+ 6,633,603
6,950,000 New Hampshire State Industrial Development
Authority Pollution Control Rev. (The
Connecticut Light and Power Company
Project), 7 3/8% due 12/1/2019* .................... Aaa/AAA 7,397,580
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March 31, 1995
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Face Ratings
State Amount Municipal Bonds Moody's/S&P Market Value
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<S> <C> <C> <C> <C>
New Jersey-- 1.9% $ 4,110,000 New Jersey Housing & Mortgage Finance Agency
(Home Buyer Rev.), 7.70% due 10/1/2029* ........... Aaa/AAA $ 4,334,735
New York-- 7.8% 10,000,000 New York State Energy Research & Development
Authority Electric Facilities Rev. (Consolidated
Edison Co. NY Inc. Project), 7 1/2% due 1/1/2026* .. Aaa/AAA 10,750,300
7,500,000 New York State Thruway Authority Rev., 6% due
1/1/2025 .......................................... Aaa/AAA 7,371,375
New York and 6,000,000 Port Authority of New York and New Jersey, 8%
New Jersey-- 2.7% due 12/1/2023* .................................... Aaa/AAA 6,282,840
Ohio-- 3.0% 6,575,000 Ohio Housing Finance Agency (Single Family
Mortgage Rev.), 7.65% due 3/1/2029* ............... NR/AAA 6,892,310
Pennsylvania-- 2.5% 2,500,000 Allegheny County Airport Rev. (Greater Pittsburgh
International Airport), 6.80% due 1/1/2010* ....... Aaa/AAA 2,658,750
3,000,000 Lehigh County Industrial Development Authority
Pollution Control Rev. (Pennsylvania Power &
Light Company Project), 6.40% due 11/1/2021 ....... Aaa/AAA 3,057,810
South Dakota-- 4.7% 10,000,000 South Dakota Student Loan Corporation Student
Loan Rev., 7 5/8% due 8/1/2006* .................... Aaa/AAA 10,829,200
Tennessee-- 2.6% 6,000,000 Humphreys County Industrial Development Board
Solid Waste Disposal Rev. (E.I. du Pont de
Nemours & Co. Project), 6.70% due 5/1/2024* ....... Aa2/AA 6,160,020
Texas-- 8.8% 10,000,000 Lower Colorado River Authority Rev., 6% due
1/1/2017 .......................................... Aaa/AAA 9,938,800
5,000,000 Matagorda County Navigation District No. 1
Pollution Control Rev. (Houston Lighting and
Power Company Project), 7 7/8% due 11/1/2016* ...... Aaa/AAA 5,276,950
5,000,000 Matagorda County Navigation District No. 1
Pollution Control Rev. (Central Power and Light
Co. Project), 7 7/8% due 12/1/2016* ................ Aaa/AAA 5,287,650
Washington-- 3.9% 2,000,000 Grant County Public Utility District No. 002 (Priest
Rapids Hydroelectric Development Rev.), 7.70%
due 1/1/2018* ..................................... A1/A+ 2,171,220
6,000,000 Snohomish County Public Utility District Rev., 6%
due 1/1/2018 ...................................... Aaa/AAA 5,825,460
1,000,000 Spokane Regional Solid Waste Management System
Rev., 7 3/4% due 1/1/2011* ......................... Aaa/AAA 1,095,420
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Total Municipal Bonds (Cost $208,465,018) -- 94.7% ................................................... 220,197,147
Short-Term Holdings (Cost $8,000,000) -- 3.4% ........................................................ 8,000,000
Other Assets Less Liabilities -- 1.9% ................................................................ 4,412,822
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NET INVESTMENT ASSETS -- 100.0%....................................................................... $232,609,969
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* Interest income earned from this security is subject to the federal
alternative minimum tax.
Note: Investments in tax-exempt securities and other short-term holdings
maturing in more than 60 days are valued based upon quotations provided by an
independent pricing service or, in their absence, at fair value determined in
accordance with procedures approved by the Board of Directors. Short-term
holdings maturing in 60 days or less are generally valued at amortized cost.
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Seligman Select Municipal Fund, Inc.
Managed by
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J. & W. SELIGMAN & CO.
INCORPORATED
Investment Managers and Advisors
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
(800) 874-1092 Stockholder Services
(800) 622-4597 24-Hour Automated
Telephone Access Service
Photo: Courtesy Michigan Travel Bureau
CESEL3a 3/95
