TO THE SHAREHOLDERS
We are pleased to provide you with the first combined Mid-Year report for
Seligman Henderson Global Fund Series, Inc. for the six-month period ended April
30, 1995.
ECONOMIC COMMENT
During the past six months, the economic statistics from around the world
have been mixed. Both the US and UK economies have shown signs of slowing. By
contrast, Continental Europe's economies continue to improve, while Japan's
economy was hit by the Kobe earthquake and the strong Yen.
The slowing of the US economy is coupled with very low levels of inflation,
and the debate now is whether the economy will experience a "hard" or "soft"
landing: We believe a "soft" landing is more likely. The UK economy has slowed
from its rapid growth in the latter part of 1994. There is, however, a clear
distinction between the very-strong export sector and the still-weak consumer
area. Additionally, inflation has risen higher than expected. In Continental
Europe, economic statistics have generally been positive. Germany's and France's
economies continue to prosper, and, despite their strong currencies, exports
remain strong.
It has been a very difficult period for Japan's economy. The Kobe
earthquake in January had an immediate effect on businesses in the region and
the port facilities in the area, and a negative impact on psychology, thus
causing the Japanese to become cautious in virtually every respect. Also, the
strength of the Yen has led to continual problems for Japan's exporters. The
economy, which had been improving gradually, has now weakened again. However,
recently the authorities have sought to improve matters through an additional
economic package and a cut in interest rates.
Elsewhere in Asia, the past six
months have been a period of continuing strong growth, except in Hong Kong,
where there is evidence of a slowdown. This stems partially from a decrease in
the high rate of growth in China's economy. This is good news, as China's
economy had been growing too rapidly and there is now some evidence that
inflation is abating.
MARKET COMMENT
In the financial markets, the bond markets have been very strong, led by
the rally in the US. This rally has been a key factor behind the powerful rise
in the US stock market, but stock markets elsewhere have proven more mixed. One
notable feature has been the significant weakness of the US Dollar against, in
particular, the Deutschmark and the Yen. Not only did this ignite fears of
slowing growth in both Japan and Germany, but it also exacerbated tensions in
some of the peripheral markets in Europe and the Pacific. Currency weakness was
seen in Sweden, Italy, Spain, and the UK in Europe, and in the Philippines and
Thailand in the Pacific, highlighting in some cases the very large budget
deficits and investors' concerns over default. These worries led to sharp falls
in some stock markets, although by April 30 most showed improvement. Japan's
market suffered the worst during the six months, as the strong Yen posed a
threat to the economy, and in turn, profits. There was considerable volatility
in some of the Asian markets, including Korea and Taiwan, as a result of rising
short-term interest rates.
In Europe, the UK stock market performed satisfactorily despite the slight
increase in short-term interest rates. However, it was felt that the UK
authorities were being preemptive in their battle against inflation. Continental
Europe showed a mixed picture, with weakness in some countries such as Italy and
Spain, and strength in France after a long period of underperformance.
Comments specific to each portfolio follow this letter.
By order of the Board of Directors,
/s/William C. Morris
William C. Morris
Chairman
/s/Ronald T. Schroeder
Ronald T. Schroeder
President
/s/Iain C. Clark
Iain C. Clark
Chief Investment Officer
Seligman Henderson Co.
June 2, 1995
1
<PAGE>
PORTFOLIO COMMENTS
SELIGMAN HENDERSON INTERNATIONAL FUND
In the past six months, we made minor changes to our country strategy. In
the beginning of February, we increased the Fund's weighting in the UK from
13.4% to 16.9% by adding to existing holdings. We also made small changes in
Continental Europe, adding to our weightings in France and Switzerland and
reducing our weightings in Italy. In France, we added to consumer-oriented
stocks with new holdings such as Groupe Danone and L'Oreal. We also added to the
financial sector with the purchase of Societe Generale.
Overall in Continental Europe, however, we reduced the number of holdings,
particularly in the cyclical and financial areas, with the sales of
Alusuisse-Lonza, Bekaert, Cie Generale des Eaux, Credito Italiano, Muenchener
Ruckversicherung, and Schneider. We made small adjustments to the weighting in
Japan and bought two new holdings, Kao and Nomura Securities. In the Pacific, we
reduced our weighting in Malaysia and sold City Developments, a Singapore
property developer, in favor of Jurong Shipyard, principally a ship repair yard.
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
In the past six months, we made some changes to the country weightings in
the Fund's portfolio, increasing the weighting in the US to 47.4% from 41.5% at
October 31, 1994. This was, principally, a result of the outperformance of US
stocks, particularly in the technology sector where your Fund is well
represented. As can be seen from the LARGEST PORTFOLIO CHANGES, there was a fair
amount of movement within the US portion of the portfolio--some of which was a
result of companies growing above our market capitalization ranges. We also
increased the weighting in Continental Europe, in particular, France and Sweden.
Both countries have thriving small-cap segments and price earnings ratios that
look very low relative to growth rates. For example, we have been able to buy
stocks with single-digit price earnings multiples with growth rates in the range
of 15% to 20%. New purchases in France include Dalloz and Technip, in Finland,
Valmet Oy, and in Sweden, Kalmar Industries and Angpanne Foreningen. Overall, we
increased the Continental European weighting as we believe these markets offer
particularly good value; this was accomplished by reducing the Fund's cash
position.
In the Far East, we made no major changes in country allocation. We did,
however, sell some of the smaller holdings such as George Kent in Malaysia. In
Japan, we continue to focus on stocks benefiting from an anticipated economic
recovery. Although these stocks have generally underperformed over the last few
months, we are confident that we should continue to selectively add to our
holdings.
Looking forward, since the US stock market performed particularly well
during the past six months, especially technology stocks, we anticipate reducing
the US weighting. We've already begun by investing all new cash flow in
international markets. Continental Europe remains the principal area of focus,
as we believe its economic recovery is soundly based and that there is
particularly good value in small companies. We are looking to increase our
weightings in Japan, but will not do so until we are more confident about the
strength of its economic recovery. Although your Fund has performed
satisfactorily in the past six months, small companies in general have
underperformed larger companies. We believe this provides good long-term buying
opportunities for smaller companies, and we remain confident that this is an
attractive segment of the stock market.
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
Throughout the past six months, the technology sector, particularly in the
US, has continued to enjoy a favorable economic backdrop. Capital spending has
remained strong in the US, while in Europe it has begun to gather momentum and,
even in Japan, is showing signs of better health. One feature has been common to
all countries: A significant increase in the proportion of the corporate and the
consumer sectors' expenditures are being directed towards technology-based goods
and services. This development, coupled with clear evidence that the US has
2
<PAGE>
PORTFOLIO COMMENTS (continued)
reasserted its Portfolio Comments (continued) dominance in the technology field
and is aggressively exploiting its position with the aid of a highly competitive
currency, has ensured an exceptionally favorable trading environment for US
technology companies.
The opposite side of this coin is that the Japanese electronics industry
has suffered from intensified competitive pressure, not only from the US, but
also from Korea and Taiwan. This, together with the Yen's relentless rise, has
prevented Japan's technology companies from enjoying the buoyant global
operating environment that has characterized the technology industry throughout
the last six months. Asia's and Europe's technology companies have enjoyed mixed
results, depending on the degree of their exposure to their own domestic markets
and their position in the technology field.
As of April 30, US holdings represented 58.4% of your Fund's assets. Within
this portion of the portfolio, we maintained a very substantial exposure to the
semiconductor industry, in particular, component manufacturers and production
equipment suppliers. This stance has proved extremely rewarding. Demand in the
industry has remained very strong, additions to capacity have lagged, pricing
has been unusually benign, and companies are enjoying exceptional growth in
profits. Significant gains have been achieved in, among others, Altera, Xilinx,
Applied Materials, Credence Systems, and PRI Automation.
Strength in semiconductor demand has been driven by strong personal
computer sales, growth in both the mobile and telecommunications industries, and
the continuing permeation of electronics into new areas of application. The
technology sector has led the US stock market in its recent advance with
reported earnings consistently exceeding analysts' expectations.
In Europe, performance has been more mixed, reflecting the quoted
technology sector's limited geographical and end-market focus. The suppliers to
the cellular industry continue to perform well, and those companies exposed to
the strength in semiconductor demand are producing impressive growth in profits.
We have added to our positions in the UK, focusing on companies with strong but
undervalued earnings momentum such as Learmonth & Burchett Management Systems,
Logica, and Psion.
In both the Pacific and Japan, we have emphasized companies selling into
the components market such as Samsung Electronics, ASM Pacific Technology, and
United Micro Electronics in the Pacific, and Kyocera, Rohm, Hirose Electronics,
Advantest, and Tokyo Electron in Japan. Japanese semiconductor suppliers are
significantly behind their US and Asian counterparts in expanding production
capacity, and we expect the next year to provide a favorable climate for
production equipment suppliers. As for the rest of Japan's technology industry,
much depends on the future direction of the Yen. Currency appreciation has
reduced Japan's competitiveness and pressured profits, but any sharp reversal
could have a very positive impact on earnings.
Your Fund's specialization positions it well to participate in what we
expect to be a strong technology spending environment over the next two to three
years. Demand in the US remains strong, while elsewhere it is accelerating. An
exciting new generation of technology companies is emerging in both Europe and
the Pacific. Valuations for some of these businesses are at a significant
discount to their American counterparts while their own domestic markets are far
behind the US in the implementation of technology. Therefore, we are optimistic
about the future and, although we may see some consolidation in the US, we
expect outperformance from the industry globally over the medium term.
3
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SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
- --------------------------------------------------------------------------------
GLOBAL SMALLER GLOBAL
INTERNATIONAL COMPANIES TECHNOLOGY
HIGHLIGHTS April 30, 1995 FUND FUND FUND
- --------------------------------------------------------------------------------
NET ASSETS:
Class A (in millions) ................. $ 59.6 $ 55.0 $ 96.6
Class D (in millions) ................. 24.3 47.4 23.0
- --------------------------------------------------------------------------------
Capital Gain Distributions* ............ $ 0.694 $ 0.332 $ 0.071
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS:**
Class A
One Year:
With sales charge(1) ................ (5.57)% 5.29 n/a
Without sales charge(2) ............. (0.85) 10.52 n/a
Since inception: ..................... 4/7/92 9/9/92 5/23/94
With sales charge(1) ................ 10.37% 20.80% 32.64%
Without sales charge(2) ............. 12.15 23.07 39.33
Class D
One Year:
With CDSL(1) ........................ (2.76) 8.58 n/a
Without CDSL(2) ..................... (1.82) 9.58 n/a
Since inception: ..................... 9/21/93 5/3/95 5/23/94
With CDSL(1) ........................ n/a n/a 37.21%
Without CDSL(2) ..................... 10.13% 16.84% 38.21
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
Class A ............................... $ 15.95 $ 11.88 $ 9.86
Class D ............................... 15.74 11.70 9.78
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE:
Class A ............................... $ 16.75 $ 12.47 $ 10.35
Class D ............................... 15.74 11.70 9.78
* Represents per share amount paid in respect of Class A and Class D shares
during the six months ended April 30, 1995.
** The Manager and Subadviser, at their discretion, waived all or portions of
their fees and/or reimbursed certain expenses.
(1) Represents the average compound rate of return per year over the specified
period and reflects change in price and assumes all distributions within the
periods are reinvested in additional shares; also reflects the effect of the
4.75% maximum initial sales charge or contingent deferred sales load ("CDSL") of
1%, if applicable. No adjustment was made to the International Fund Class A
shares' performance for periods prior to September 21, 1993, the commencement
date of the annual Administration, Shareholder Services and Distribution Plan
fee of up to 0.25% of average daily net assets of Class A shares.
(2) Represents the rate of return as above, but does not reflect the effect of
the 4.75% maximum initial sales charge or 1% CDSL.
NOTE: THE PERFORMANCE OF CLASS D SHARES WILL BE GREATER OR LESS THAN THE
PERFORMANCE SHOWN FOR CLASS A SHARES, BASED ON THE DIFFERENCES IN SALES CHARGES
AND FEES PAID BY SHAREHOLDERS. THE RATES OF RETURN WILL VARY AND THE PRINCIPAL
VALUE OF AN INVESTMENT WILL FLUCTUATE. SHARES, IF REDEEMED, MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE
INVESTMENT RESULTS.
4
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INTERNATIONAL FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Picture]
IAIN C. CLARK
MAJOR PORTFOLIO HOLDINGS
at April 30, 1995
SECURITY VALUE
- -------- ----------
Nippon Telegraph & Telephone ............................. $3,087,563
Yamaha ................................................... 3,085,782
East Japan Railway ....................................... 3,024,886
Toshiba .................................................. 2,754,349
Mitsubishi Rayon ......................................... 2,733,820
Pioneer Electronic ....................................... 2,521,817
Sumitomo Trust and Banking ............................... 1,734,046
Nippon Paper ............................................. 1,628,139
Fuji Bank ................................................ 1,558,920
Nomura Securities ........................................ 1,453,250
LARGEST PORTFOLIO CHANGES*
November 1, 1994, to April 30, 1995
SHARES
-----------------------
HOLDINGS
ADDITIONS INCREASE 4/30/95
- --------- -------- -------
Groupe Danone .................................... 5,000 5,000
Jurong Shipyard .................................. 160,000 160,000
Kao .............................................. 72,000 72,000
L.M. Ericsson (Series B) ......................... 14,000 14,000
L'Oreal .......................................... 3,200 3,200
Lufthansa ........................................ 6,700 6,700
Nomura Securities ................................ 72,000 72,000
Pioneer Electronic ............................... 25,000 120,000
Societe Generale ................................. 8,000 8,000
Yamaha ........................................... 55,000 230,000
HOLDINGS
REDUCTIONS DECREASE 4/30/95
- ---------- ------- -------
Alusuisse-Lonza .................................. 1,000 --
Bekaert .......................................... 900 --
Cie Generale des Eaux ............................ 5,400 --
City Developments ................................ 176,920 --
Credito Italiano ................................. 606,890 --
Daiwa House Industry ............................. 82,000 87,000
Muenchener Ruckversicherung ...................... 281 --
NSK .............................................. 68,000 16,000
Schneider ........................................ 7,200 --
Tuntex Distinct GDRs ............................. 57,522 4,462
* Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- --------------------------------------------------------------------------------
PERCENTAGE OF INVESTMENTS BY COUNTRY AS OF APRIL 30, 1995
Japan .................................................. 37.0%
United Kingdom ......................................... 16.9
France ................................................. 7.8
Switzerland ............................................ 5.1
Germany ................................................ 4.3
Netherlands ............................................ 4.4
Australia .............................................. 3.0
Singapore .............................................. 2.8
Sweden ................................................. 2.3
Hong Kong .............................................. 1.9
India .................................................. 1.8
Spain .................................................. 1.7
Thailand ............................................... 1.6
Taiwan ................................................. 1.4
Malaysia ............................................... 1.3
Denmark ................................................ 1.1
Argentina .............................................. 1.0
Indonesia .............................................. 1.0
Mexico ................................................. 1.0
Italy .................................................. 0.8
Korea .................................................. 0.8
Norway ................................................. 0.7
Brazil ................................................. 0.3
-----
Total .................................................. 100.0%
=====
- --------------------------------------------------------------------------------
5
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================================================================================
GLOBAL SMALLER COMPANIES FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER
[Picture]
IAIN C. CLARK
MAJOR PORTFOLIO HOLDINGS
at April 30, 1995
SECURITY VALUE
- -------- ----------
Altera .................................................. $2,909,250
Fusion Systems .......................................... 2,196,250
Electronics for Imaging ................................. 2,064,375
Cognex .................................................. 1,777,500
FSI International ....................................... 1,752,750
Canandaigua Wine (Class A) .............................. 1,735,000
Protein Design Labs ..................................... 1,732,500
Exar .................................................... 1,575,000
BMC Industries .......................................... 1,440,000
PRI Automation .......................................... 1,430,000
LARGEST PORTFOLIO CHANGES*
November 1, 1994, to April 30, 1995
SHARES
-----------------------
HOLDINGS
ADDITIONS INCREASE 4/30/95
- --------- -------- -------
AGCO .......................................... 20,000 30,000(1)
BMC Industries ................................ 80,000 80,000
Canandaigua Wine (Class A) .................... 40,000 40,000
Cognex ........................................ 60,000 60,000
Dimac ......................................... 84,500 84,500
Electro Scientific Industries ................. 50,000 50,000
Exar .......................................... 60,000 60,000
Hitachi Medical ............................... 52,000 52,000
Speedway Motorsports .......................... 60,000 60,000
St. John Knits ................................ 30,000 30,000
HOLDINGS
REDUCTIONS DECREASE 4/30/95
- ---------- -------- --------
Alliance Semiconductor ......................... 50,000 --
Asyst Technologies ............................. 40,000 30,000
BWT ............................................ 4,110 --
Electronics for Imaging ........................ 15,000 45,000
FSI International .............................. 32,000 38,000
Integrated Device Technology ................... 33,000 --
Integrated Silicon Systems ..................... 30,000 --
Novellus Systems ............................... 30,000 --
Thai Plastic & Chemicals ....................... 70,000 --
Western Digital ................................ 70,000 --
* Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
(1) Includes 10,000 shares received as a result of a 3-for-2 stock split.
- --------------------------------------------------------------------------------
PERCENTAGE OF INVESTMENTS BY COUNTRY AS OF APRIL 30, 1995
United States .......................................... 47.4%
Japan .................................................. 14.2
United Kingdom ......................................... 9.9
France ................................................. 6.1
Sweden ................................................. 4.4
Switzerland ............................................ 3.4
Netherlands ............................................ 1.7
Australia .............................................. 1.4
Norway ................................................. 1.4
Denmark ................................................ 1.0
Germany ................................................ 1.0
Finland ................................................ 0.9
Canada ................................................. 0.8
Italy .................................................. 0.8
Thailand ............................................... 0.8
Indonesia .............................................. 0.7
Singapore .............................................. 0.7
Argentina .............................................. 0.6
India .................................................. 0.6
Mexico ................................................. 0.6
Spain .................................................. 0.6
Malaysia ............................................... 0.5
Hong Kong .............................................. 0.4
Portugal ............................................... 0.1
-----
Total .................................................. 100.0%
=====
- --------------------------------------------------------------------------------
6
<PAGE>
================================================================================
GLOBAL TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS
[Picture]
BRIAN ASHFORD-RUSSELL
[Picture]
PAUL H. WICK
MAJOR PORTFOLIO HOLDINGS
at April 30, 1995
SECURITY VALUE
- -------- ----------
EMC .................................................... $2,765,000
Altera ................................................. 2,424,375
DSC Communications ..................................... 2,216,250
Cypress Semiconductor .................................. 2,117,500
Intel .................................................. 2,048,750
Applied Materials ...................................... 2,037,750
Lam Research ........................................... 2,025,000
Dell Computer .......................................... 2,023,438
Protein Design Labs .................................... 1,980,000
Tower Semiconductor .................................... 1,912,500
LARGEST PORTFOLIO CHANGES*
November 1, 1994, to April 30, 1995
SHARES
------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/95
- --------- -------- -------
COMMON STOCKS
Adaptec ..................................... 50,000 50,000
Applied Materials ........................... 33,000 33,000
Aspect Telecommunications ................... 40,000 40,000
Cidco ....................................... 50,000 50,000
Cypress Semiconductor ....................... 70,000 70,000
DSC Communications .......................... 42,000 60,000
EMC ......................................... 104,000 140,000
Intel ....................................... 20,000 20,000
Lannet Data Communications .................. 60,000 60,000
PREFERRED STOCKS
Nokia ....................................... 11,000 44,000(1)
HOLDINGS
REDUCTIONS DECREASE 4/30/95
- ------------------------------------------------ ------- -------
COMMON STOCKS
Adtran ......................................... 25,000 --
Arjo ........................................... 44,000 --
Cable & Wireless ............................... 125,000 --
Fuji Photo Film ................................ 35,000 --
Integrated Device Technology ................... 22,000 --
Merix .......................................... 30,000 --
Sanmina ........................................ 25,000 --
Teradyne ....................................... 20,000 --
Triconex ....................................... 40,000 --
Wonderware ..................................... 25,000 --
* Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities. (1) Includes
33,000 shares received as a result of a 4-for-1 stock split.
- --------------------------------------------------------------------------------
PERCENTAGE OF INVESTMENTS BY COUNTRY AS OF APRIL 30, 1995
United States .......................................... 58.4%
Japan .................................................. 13.6
United Kingdom ......................................... 13.0
Israel ................................................. 2.7
Netherlands ............................................ 2.2
Taiwan ................................................. 1.7
Finland ................................................ 1.6
Hong Kong .............................................. 1.0
Sweden ................................................. 1.0
Ireland ................................................ 0.9
Singapore .............................................. 0.9
South Korea ............................................ 0.9
France ................................................. 0.8
Italy .................................................. 0.4
Pakistan ............................................... 0.3
Australia .............................................. 0.2
Brazil ................................................. 0.2
Thailand ............................................... 0.2
-----
Total .................................................. 100.0%
=====
7
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PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
SHARES VALUE
------ -----
COMMON STOCKS--90.8%
BANKING--11.1%
ABN-AMRO HOLDINGS (Netherlands)
Worldwide banking operation .................. 18,990 $ 727,900
BANCO DE SANTANDER (Spain)
Worldwide banking operation .................. 18,200 662,153
BANCO DE SANTANDER RIGHTS (Spain)
Worldwide banking operation .................. 2,566 92,837
C.S. HOLDINGS (Switzerland)
Worldwide banking operation .................. 1,047 437,620
DEUTSCHE BANK (Germany)
Worldwide banking operation .................. 1,600 783,088
FUJI BANK (Japan)
Worldwide banking operation .................. 65,000 1,558,920
GRUPO FINANCIERO BANAMEX
ACCIVAL (SERIES L) (Mexico)
One of the largest financial
companies in Mexico involved
in banking and stockbroking .................. 100,000 169,038
LLOYDS BANK (UK)
Banking operation engaged in a
full range of financial services,
principally in the UK ........................ 19,000 195,623
MALAYAN BANKING (Malaysia)
Provider of banking services ................. 77,000 526,629
SIAM COMMERCIAL BANK (Thailand)
Provider of banking services ................. 70,000 591,990
SOCIETE GENERALE (France)
Provider of full banking and
financial services ........................... 8,000 875,469
SUMITOMO TRUST AND BANKING (Japan)
Trust bank ................................... 115,000 1,734,046
UNITED OVERSEAS BANK (Singapore)
Comprehensive banking
operation, with substantial
interests in Malaysia ........................ 90,550 941,673
-----------
9,296,986
-----------
CHEMICALS--3.3%
AKZO NOBEL (Netherlands)
Producer of chemicals, fibers,
paints, hospital supplies, and
diagnostics .................................. 7,300 843,660
BAYER (Germany)
Producer of specialty chemicals,
pharmaceuticals, and plastics ................ 3,100 762,524
TOYO INK MANUFACTURING (Japan)
Ink manufacturer ............................. 63,000 414,390
CHEMICALS (continued)
TPI POLENE (Thailand)
Manufacturer of polyethylene ................. 117,500 666,447
TUNTEX DISTINCT GDRS* (Taiwan)
Conglomerate with interests
in chemicals and real estate ................. 4,462 52,429
-----------
2,739,450
-----------
CONSTRUCTION AND PROPERTY--2.5%
DAIWA HOUSE INDUSTRY (Japan)
Builder of steel framed pre-
fabricated houses ............................ 87,000 1,446,126
LAFARGE COPPEE (France)
Global manufacturer of building
materials, including cement
and concrete ................................. 8,917 692,163
-----------
2,138,289
-----------
CONSUMER PRODUCTS--6.1%
CSK (Japan)
Information services company ................. 48,000 1,327,872
KAO (Japan)
Manufacturer of cosmetics and
personal care products ....................... 72,000 871,950
L'OREAL (France)
Manufacturer of health
and beauty products .......................... 3,200 839,153
NESTLE (Switzerland)
Allied companies engaged
in food processing,
pharmaceuticals, and cosmetics ............... 920 898,325
UNILEVER (UK)
A major producer of consumer
goods and personal care products ............. 62,000 1,224,791
-----------
5,162,091
-----------
ELECTRONICS--7.4%
FARNELL ELECTRONICS (UK)
Manufacturer and distributor of
electronic and electrical equipment .......... 100,000 938,630
PIONEER ELECTRONIC (Japan)
Manufacturer of audio equipment,
including laser disks ........................ 120,000 2,521,817
TOSHIBA (Japan)
Diversified manufacturer of
consumer and industrial
electronics .................................. 415,000 2,754,349
-----------
6,214,796
-----------
FINANCIAL SERVICES--1.7%
NOMURA SECURITIES (Japan)
Japan's largest securities firm .............. 72,000 1,453,250
-----------
HEALTH AND HOUSEHOLD--1.1%
ROCHE HOLDINGS (Switzerland)
European pharmaceutical
company and chemicals producer ............... 150 901,178
-----------
- ------------------
See footnotes on page 20.
8
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April 30, 1995
- --------------------------------------------------------------------------------
INTERNATIONAL FUND (continued)
SHARES VALUE
------ -----
INDUSTRIAL GOODS AND
SERVICES--2.5%
BBC BROWN BOVERI (Switzerland)
Manufacturer of heavy equipment
for electric power generation and
distribution ................................. 900 $ 888,220
BTR (UK)
Global company that manufactures
a broad range of industrial goods ............ 230,000 1,218,290
-----------
2,106,510
-----------
INSURANCE--5.1%
ASSICURAZIONE GENERALI (Italy)
Provider of life and non-life
insurance services and
investment and related services .............. 25,500 612,421
AXA (France)
Provider of financial services
and insurance ................................ 17,428 915,460
INTERNATIONALE NEDERLANDEN GROUP
(Netherlands)
Worldwide underwriter of
reinsurance; provider of
financing and consumer credit ................. 17,035 894,680
LEGAL & GENERAL (UK)
A major insurance company
operating primarily in the UK ................. 125,000 949,900
ZURICH VERSICHERUNG (Switzerland)
Provider of insurance services ................ 820 870,087
-----------
4,242,548
-----------
LEISURE AND HOTELS--1.6%
GRANADA GROUP (UK)
Television group with additional
leisure interests .............................. 145,000 1,329,498
-----------
MANUFACTURING--7.0%
DELTA GROUP (UK)
Cable, electrical equipment, and
building products manufacturer ................. 81,000 628,576
FKI BABCOCK (UK)
Electrical engineering company ................. 310,000 793,569
GADJAH TUNGGAL (Indonesia)
Tire manufacturer .............................. 866,000 761,095
HOCHENG GROUP GDRS* (Taiwan)
Manufacturer of bathroom
fixtures ....................................... 27,000 594,000
YAMAHA (Japan)
Manufacturer of musical
instruments and audio
equipment ...................................... 230,000 3,085,782
-----------
5,863,022
-----------
MEDIA--5.4%
NEWS CORP. (Australia)
Global printer and publisher of
professional trade journals
and magazines .................................. 140,620 683,793
NIPPON TELEVISION NETWORK (Japan)
Japanese television broadcasters ............... 3,530 783,746
REED ELSEVIER (Netherlands)
Global printer and publisher of
professional trade journals and
magazines ...................................... 85,000 927,769
REUTERS HOLDINGS (UK)
Holding company for the Reuters
news organization .............................. 163,000 1,239,982
WPP GROUP (UK)
Owner of major global
advertising agencies ........................... 480,000 857,808
-----------
4,493,098
-----------
METALS--1.2%
ACESITA ADRS* (Brazil)
Steel manufacturer ............................. 16,950 260,605
HINDALCO GDSS (India)
A large aluminum producer ...................... 25,000 650,000
NSK (Japan)
Manufacturer of ball bearings .................. 16,000 116,450
-----------
1,027,055
-----------
PAPER AND PACKAGING--3.0%
NIPPON PAPER (Japan)
Largest Japanese paper manufacturer ............ 210,000 1,628,139
STORA KOPPARBERGS (Sweden)
Manufacturer of forestry products .............. 13,000 870,854
-----------
2,498,993
-----------
RESOURCES--6.2%
BRITISH PETROLEUM (UK)
Oil producer, refiner, and
distributor .................................... 180,000 1,296,855
BROKEN HILL PROPRIETARY
(Australia) The largest
resources company in Australia
with interests in steel,
oil, and minerals .............................. 81,000 1,179,279
ELF AQUITAINE (France) Oil and gas
exploration; manufacturer of chemical compounds 11,252 895,463
MIM HOLDINGS
(Australia) International minerals and
metals exploration company...................... 346,000 506,260
- ------------------
See footnotes on page 20.
9
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
SHARES VALUE
------ -----
RESOURCES (continued)
REPSOL (Spain)
Oil explorer, refiner, and
distributor .................................... 17,700 $ 561,586
YPF SOCIEDAD ANONIMA ADRS
(Argentina)
Oil and gas producer ........................... 37,000 749,250
-----------
5,188,693
-----------
RETAILING--5.1%
AOYAMA TRADING (Japan)
Suit and clothing retailer ..................... 19,000 367,705
CARREFOUR SUPERMARCHE (France)
Supermarket operator in Europe,
the Americas, and Taiwan ....................... 1,770 884,193
GROUPE DANONE (France)
Food retailer .................................. 5,000 823,792
KARSTADT (Germany)
Retailer ....................................... 2,100 901,502
TESCO (UK)
Supermarket chain .............................. 285,000 1,282,486
-----------
4,259,678
-----------
SHIPBUILDING--2.1%
JURONG SHIPYARD (Singapore)
Leading ship repair company in
Singapore ...................................... 160,000 1,227,856
KVAERNER INDUSTRIES (Norway)
Engineering company specializing
in shipbuilding ................................ 12,920 559,218
-----------
1,787,074
-----------
TELECOMMUNICATIONS--7.4%
GRUPO CARSO ADRS*+ (Mexico)
Holding company with a substantial
stake in Telmex and a number
of industrial subsidiaries ..................... 55,000 635,800
HONG KONG TELECOMMUNICATIONS
(Hong Kong)
Provider of telecommunications
services ....................................... 376,000 735,779
L.M. ERICSSON (SERIES B) (Sweden)
Manufacturer of tele-
communications equipment ....................... 14,000 924,391
NIPPON TELEGRAPH & TELEPHONE
(Japan)
Telecommunications company ..................... 350 3,087,563
TELE DANMARK (Denmark)
Provider of telecommunications
services ....................................... 16,400 854,527
-----------
6,238,060
-----------
TEXTILES--3.3%
MITSUBISHI RAYON (Japan)
Textile manufacturer ........................... 656,000 2,733,820
TOBACCO--1.5%
B.A.T. INDUSTRIES (UK)
Manufacturer of tobacco and a
financial services company ..................... 165,000 1,245,899
TRANSPORTATION--6.1%
EAST JAPAN RAILWAY (Japan)
Provider of railway services ................... 583 3,024,886
LUFTHANSA (Germany)
Operator of international airline
services ....................................... 6,700 884,581
PERUSAHAAN OTOMOBIL
NASIONAL (Malaysia)
Assembler of motor cars ........................ 138,000 469,122
SWIRE PACIFIC (Hong Kong)
Conglomerate with major
interests in property development
and aviation ................................... 117,000 782,065
-----------
5,160,654
-----------
UTILITIES--0.1%
ALCATEL ALSTHOM (France)
Telecommunications, electric
power generation, and
transmission networks .......................... 1,204 111,263
-----------
TOTAL COMMON STOCKS
(Cost $71,691,486) .................................. 76,191,905
-----------
- ------------------
See footnotes on page 20.
10
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
INTERNATIONAL FUND (continued)
PRIN. AMT. VALUE
--------- -----
CONVERTIBLE BONDS--2.3%
CONGLOMERATE--0.8%
DAEWOO (Korea) Zero Coupon
Bond due 12/31/2004
Conglomerate with interests
in construction, shipbuilding,
and auto production ............................ $ 1,140,000 $ 624,150
-----------
ELECTRONICS--0.5%
TECO ELECTRONICS & MACHINERY
(Taiwan) 2 3/4%, due 4/15/2004
Manufacturer of household
appliances and electrical
equipment ...................................... 520,000 448,500
-----------
INSURANCE--0.1%
AXA (France)
4 1/2%, due 1/1/1999
Provider of financial
services and insurance ......................... 295,650** 64,576
-----------
MANUFACTURING--0.9%
GUJARAT AMBUJA (India)
3 1/2%, due 6/30/1999
Cement manufacturer ............................ 600,000 772,500
-----------
TOTAL CONVERTIBLE BONDS
(Cost $2,398,985) .............................. 1,909,726
-----------
TOTAL INVESTMENTS--93.1%
(Cost $74,090,471) .................................. 78,101,631
OTHER ASSETS
LESS LIABILITIES--6.9% ......................... 5,780,212
-----------
NET ASSETS--100.0% .................................. $83,881,843
===========
- ------------------
See footnotes on page 20.
11
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
COMMON STOCKS--90.7%
ADVERTISING--3.7%
ASATSU (Japan)
Advertising agency ...................... 27,000 $1,073,909
DIMAC (US)
Business services, direct marketing ..... 84,500 1,320,313
HERITAGE MEDIA (Class A) (US)
Broadcasting and in-store advertising ... 55,000 1,402,500
-----------
3,796,722
-----------
AUTOMOTIVE PARTS MANUFACTURING--1.0%
LINAMAR (Canada)
Auto parts supplier to all major
US car manufacturers ......................... 24,000 280,694
MONTUPET (France)
Manufacturer of auto components .............. 4,200 697,943
-----------
978,637
-----------
BUILDING MATERIALS--0.9%
POLYPIPE (UK)
Manufacturer of plastic piping and
molded plastic products ...................... 340,000 892,262
-----------
BUSINESS SERVICES--3.9%
BISYS GROUP* (US)
Data processing service for banks ............ 60,000 1,252,500
INTERNATIONAL BUSINESS
COMMUNICATIONS HOLDINGS (UK)
Organizer of conferences and
publisher .................................... 335,000 1,386,130
SUNGARD DATA SYSTEMS (US)
Computer services aimed at
disaster recovery ............................ 30,000 1,391,250
-----------
4,029,880
-----------
CAPITAL GOODS--2.1%
FUSION SYSTEMS* (US)
Manufacturer of ultraviolet
curing systems ............................... 70,000 2,196,250
-----------
CHEMICALS--3.0%
DALLOZ* (France)
Manufactures polycarbonate-
injected plastic for use in sun-
glasses and protective eye wear .............. 5,860 948,858
HOEGANAES (SERIES B) (Sweden)
Producer of metal powders .................... 45,000 759,801
TOSHIBA CHEMICAL (Japan)
Produces synthetic resin molded
products and insulating materials ............ 37,000 292,574
TOYO INK MANUFACTURING (Japan)
Ink manufacturer ............................. 158,000 1,039,264
-----------
3,040,497
-----------
CONSTRUCTION AND PROPERTY--1.8%
BUKIT SEMBAWANG ESTATES (Singapore)
Property developer ............................. 36,000 624,830
DANSKE TRAELASTKOMPAGNE (Denmark)
Timber supply company .......................... 12,100 914,632
EX-LANDS (UK)
UK and European property
company ........................................ 166,615 54,991
TILBURY DOUGLAS (UK)
Small contractor in the UK ..................... 31,500 234,811
-----------
1,829,264
-----------
CONSUMER GOODS AND SERVICES--6.1%
CANANDAIGUA WINE (CLASS A)* (US)
Wine, imported beer, and
distilled spirits .............................. 40,000 1,735,000
DEVRY (US)
Technical and MBA degree schools ............... 25,000 946,875
FUJITSU BUSINESS SYSTEMS (Japan)
Distributor of electronic and
communications equipment ....................... 13,000 371,980
LE CREUSET (France)
Quality cookware manufacturer ................ 40,000 137,816
MARIEBERG TIDNINGS (SERIES A)
(Sweden)
Newspaper publisher and
distributor .................................. 30,000 634,197
RENTSCH, WALTER HOLDINGS
(Switzerland)
Swiss distributor of Canon, Inc.
products ..................................... 5,250 1,007,853
SORINI (Indonesia)
Manufacturer of Sorbitol and
Maltodexin, etc .............................. 100,000 370,578
ST. JOHN KNITS (US)
Apparel manufacturer ......................... 30,000 1,038,750
-----------
6,243,049
-----------
DRUGS AND HEALTH CARE--2.6%
F.H. FAULDING (Australia)
Pharmaceutical wholesaler .................... 90,136 433,056
HORIZON MENTAL HEALTH
MANAGEMENT (US)
Psychiatric care provider ...................... 15,000 166,875
- ------------------
See footnotes on page 20.
12
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND (continued)
SHARES VALUE
------ -----
NACIONAL DE DROGAS (SERIES L)
(Mexico)
Pharmaceutical wholesaler ...................... 100,000 $ 309,623
PROTEIN DESIGN LABS (US)
Biotechnology company that
develops antibodies and other
proteins to treat diseases ..................... 70,000 1,732,500
-----------
2,642,054
-----------
ELECTRICAL DISTRIBUTION--1.5%
REXEL (France)
European electrical wholesaler ................. 5,155 846,195
TRIFAST (UK)
Manufacturer and distributor of
fasteners for the electronics industry ......... 175,000 732,550
-----------
1,578,745
-----------
ELECTRICAL UTILITIES--0.6%
CENTRAL COSTANERA ADSS+
(Argentina)
Electrical power generation
company ........................................ 20,000 590,000
-----------
ELECTRONICS--7.2%
BMC INDUSTRIES (US)
Television aperture masks ...................... 80,000 1,440,000
COGNEX (US)
Manufacturer of machine
vision systems ................................. 60,000 1,777,500
ELECTRO SCIENTIFIC INDUSTRIES (US)
Laser trimming systems, memory
repair systems, and test and
production equipment ........................... 50,000 1,331,250
ENPLAS (Japan)
Producer of plastics for engineering ........... 13,000 302,523
FOSTER ELECTRIC (Japan)
Speaker manufacturer with
worldwide production ........................... 122,000 738,736
ISA INTERNATIONAL (UK)
Supplier of computer
consumables .................................. 325,000 497,087
OTRA NV (Netherlands)
Holding company for various
technical product wholesale
companies .................................... 4,280 861,496
TECHNICHE* (Australia)
A specialist in the transfer and
integration of digital
communications ............................... 177,000 434,215
-----------
7,382,807
-----------
FINANCIAL SERVICES--3.6%
PROTECTOR FORSIKRING* (Norway)
Provider of non-life insurance
policies ..................................... 44,800 897,724
FINANCIAL SERVICES (continued)
ROOSEVELT FINANCIAL GROUP (US)
Largest St. Louis-based savings
institution ................................ 54,000 867,375
T. ROWE PRICE (US)
Investment advisor to the
T. Rowe Price Mutual Funds and
institutional money managers ............... 30,000 1,095,000
WORLD ACCEPTANCE* (US)
Small-loan consumer financier .............. 30,000 855,000
-----------
3,715,099
-----------
FOOD--0.2%
GRUPO HERDEZ (SERIES A)
(Mexico)
Food manufacturer .......................... 453,230 168,397
-----------
LEISURE--1.1%
SPEEDWAY MOTORSPORTS (US)
Owner/operator of
NASCAR racetracks .......................... 60,000 1,102,500
-----------
MANUFACTURING--8.2%
AGCO (US)
Farm equipment ................................. 30,000 1,068,750
ANDAYANI MEGAH (Indonesia)
Manufacturer of tire cord ...................... 284,000 252,777
ANGPANNE FORENINGEN (Sweden)
Manufacturer of electrical
engineering products ........................... 49,900 787,736
DANTO (Japan)
Manufacturer of wall and
floor tiles .................................... 10,000 134,165
DAVID BROWN GROUP (UK)
Diversified engineering company
that manufactures transmission
equipment and pumps ............................ 122,416 435,568
FUTURIS (Australia)
Mini-conglomerate with interests
in building materials and chemicals ............ 535,442 436,548
GLORY KOGYO (Japan)
Manufacturer and major exporter
of currency-handling machines .................. 12,000 364,737
INDUSTRIE NATUZZI ADRS (Italy)
Manufacturer of leather furniture .............. 21,240 793,845
INTERNATIONAL DE CERAMICA* (Mexico)
Manufacturer of ceramic tiles .................. 40,000 63,331
KALMAR INDUSTRIES (Sweden)
Manufacturer of heavy-lift trucks .............. 47,500 648,783
NAMURA SHIPBUILDING (Japan)
Shipbuilder .................................... 58,000 344,316
NICHICON (Japan)
Manufacturer of electrical
equipment ...................................... 33,000 470,169
- ------------------
See footnotes on page 20.
13
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND (continued)
SHARES VALUE
------ -----
MANUFACTURING (continued)
SINGAMAS CONTAINER (Hong Kong)
Dry-goods freight manufacturer ................. 1,700,000 $ 377,680
SODICK (Japan)
Manufacturer of electro dischargers ............ 48,000 387,533
TSUDAKOMA (Japan)
Manufacturer of air-jet looms .................. 115,000 882,042
VALMET OY (Finland)
Manufacturer of paper and pulp
machinery ...................................... 39,700 898,745
-----------
8,346,725
-----------
MEDIA--3.0%
CAPITAL RADIO (UK)
Commercial radio station in London ............. 85,000 515,925
HODDER HEADLINE (UK)
Book publisher and distributor ................. 100,000 555,450
JOURNALGESTE* (Portugal)
Newspaper publisher ............................ 9,400 158,375
TRINITY INTERNATIONAL (UK)
Publisher of regional newspapers
in the UK, US, and Canada ...................... 75,000 403,305
UNITED VIDEO SATELLITE GROUP
(Class A) (US)
Satellite-delivered program services ........... 55,000 1,395,625
-----------
3,028,680
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY--2.5%
ARJO (Sweden)
Manufacturer of patient handling
equipment ...................................... 33,000 511,888
HITACHI MEDICAL (Japan)
Manufacturer of medical
equipment ...................................... 52,000 784,090
LIFE SCIENCES INTERNATIONAL (UK)
Manufacturer of medical equipment .............. 200,000 441,140
SULLIVAN DENTAL PRODUCTS (US)
A leading national distributor of
dental supplies ................................ 60,000 825,000
-----------
2,562,118
-----------
METALS--1.8%
NAKAYAMA STEEL WORKS (Japan)
Small blast furnace company
producing mainly for the
housing industry ............................... 141,000 1,006,127
ODIN MINING & INVESTMENTS* (Australia)
Explorer of precious metals,
mainly gold .................................... 13,750 5,505
SUMITOMO SITIX (Japan)
Titanium producer .............................. 69,000 868,388
-----------
1,880,020
-----------
OIL SERVICE--1.5%
COFLEXIP ADRS (France)
Manufacturer of flexible oil pipes ............. 35,343 1,064,708
ENSERV* (Canada)
Diversified oil field services
company ...................................... 60,000 436,512
-----------
1,501,220
-----------
PAPER AND PACKAGING--3.2%
BOBST AG (Switzerland)
Manufactures machinery for the
paper and package industries ................. 659 897,068
KISHU PAPER (Japan)
Low-cost specialty paper
manufacturer ................................. 91,000 449,463
MUNSKJO (Sweden)
Specialty paper producer ..................... 100,000 837,360
RENGO (Japan)
Manufacturer of paper boards
and jute liners .............................. 47,000 357,697
DAVID S. SMITH HOLDINGS (UK)
Paper and packaging manufacturer
in the UK and France ......................... 31,593 282,299
WACE GROUP (UK)
Provides pre-press and printing
services ..................................... 140,000 504,896
-----------
3,328,783
-----------
RESOURCES--1.1%
NITTETSU MINING (Japan)
Open cast coal miner ......................... 112,000 1,118,338
-----------
RESTAURANTS--2.3%
AIYA (Japan)
Restaurant chain ............................. 65,000 879,786
INTERNATIONAL HOUSE OF
PANCAKES (US)
National restaurant chain .................... 40,000 905,000
PIZZA EXPRESS (UK)
Operator of restaurant chain ................. 250,000 547,400
-----------
2,332,186
-----------
RETAILING--4.2%
ADELSTEN (CLASS B) (Norway)
Retailer concentrated in the
Scandinavian markets ......................... 2,775 400,368
CLINTON CARDS (UK)
Retailer of greetings cards .................. 256,000 342,093
FOTOLABO CLUB (Switzerland)
Film processor ............................... 200 558,464
GENERAL NUTRITION COMPANIES* (US)
A leading US retailer of vitamins
and nutritional supplements .................. 37,000 920,375
- ------------------
See footnotes on page 20.
14
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND (continued)
SHARES VALUE
------ -----
RETAILING (continued)
HELLO DIRECT (US)
Food retailer .................................. 30,000 $ 354,375
HORNBACH BAUMARKT (Germany)
A large home improvement and
garden center retailer ......................... 1,529 969,151
PRODEGA (Switzerland)
Food retailer .................................. 2,700 777,487
-----------
4,322,313
-----------
TECHNOLOGY--14.8%
ALTERA* (US)
Manufacturer of programmable
logic circuits ................................. 36,000 2,909,250
ASYST TECHNOLOGIES* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers ................................. 30,000 1,170,000
CREDENCE SYSTEMS (US)
Manufacturer of semiconductor
test equipment ................................. 35,000 1,277,500
ELECTRONICS FOR IMAGING* (US)
Color copier servers ........................... 45,000 2,064,375
EXAR* (US)
Electrical components--semiconductors .......... 60,000 1,575,000
FSI INTERNATIONAL* (US)
Semiconductor manufacturing
equipment ..................................... 38,000 1,752,750
GETRONICS (Netherlands)
Computer systems' integration
house and consultant .......................... 17,726 722,697
MATTSON TECHNOLOGY (US)
Photo-resist strip equipment .................. 38,000 1,026,000
PRI AUTOMATION (US)
Semiconductor factory automation systems ...... 55,000 1,430,000
SANMINA* (US)
Manufacturer of electronic circuit boards ..... 35,000 1,194,375
-----------
15,121,947
-----------
TELECOMMUNICATIONS--0.7%
LOXLEY (Thailand)
Supplier of computer and
telecommunications equipment .................. 40,000 754,625
TEXTILES AND APPAREL--2.0%
Claremont Garments (UK)
Manufacturer of women's clothing
for a major UK retailer ....................... 88,000 $ 444,875
NAUTICA ENTERPRISES* (US)
Manufacturer of men's sportswear .............. 35,000 975,625
RENOWN* (Japan)
Clothing manufacturer ......................... 150,000 632,235
-----------
2,052,735
-----------
TRANSPORTATION--2.8%
FORTH PORTS (UK)
Holder of the monopoly of ports
in the Forth region of Scotland .............. 40,000 318,780
KELANG CONTAINER (Malaysia)
Provides container handling and
storage facilities ........................... 190,000 457,507
PST VANS (US)
Regional truckload carrier ................... 50,000 784,375
RUBIS ET CIE (France)
Chemical storage and distribution company .... 16,000 444,219
TONAMI TRANSPORT (Japan)
Regional transport company ................... 117,000 872,378
-----------
2,877,259
-----------
VETERINARY PRODUCTS--0.5%
VIRBAC (France)
Manufacturer of animal drugs
and veterinary products ...................... 4,972 539,066
MISCELLANEOUS--2.8%
FROST GROUP (UK)
Gas station chain ............................ 100,000 437,920
NU-KOTE HOLDINGS (CLASS A)* (US)
Manufacturer of products for
printing equipment ........................... 50,000 1,387,500
TECHNIP* (France)
Engineering contractors ...................... 17,390 1,036,105
-----------
2,861,525
-----------
TOTAL COMMON STOCKS
(Cost $80,506,017) ........................... 92,813,703
-----------
- ------------------
See footnotes on page 20.
15
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND (continued)
PRIN. AMT. VALUE
---------- -----
CONVERTIBLE BONDS--1.4%
CONSTRUCTION AND PROPERTY--0.3%
Ex-Lands (UK) 7 1/2%, due 1/1/2020
UK and European property
company ...................................... 233,261(0) $ 289,945
----------
MANUFACTURING--0.5%
GUJURAT AMBUJA CEMENT (India)
3 1/2%, due 6/30/1999
Cement manufacturer .......................... $450,000 579,375
----------
MEDIA
AUDIOFINA (Belgium)
5%, due 12/31/1996
Holding company with radio
and TV interests across Europe .............. 3,100++ 14,842
----------
PUBLISHING--0.6%
GRUPO ANAYA (Spain)
7%, due 3/18/1998
Publishing company........................... 72,000,000+++ $ 582,760
-----------
TOTAL CONVERTIBLE BONDS
(Cost 1,490,391) ............................ 1,466,922
-----------
TOTAL INVESTMENTS--92.1%
(Cost $81,996,408) .......................... 94,280,625
OTHER ASSETS LESS
LIABILITIES--7.9% ........................... 8,103,748
------------
NET ASSETS--100.0% ............................... $102,384,373
============
16
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
COMMON STOCKS--93.1%
BROADCASTING--0.9%
AUSTRALIS MEDIA* (Australia)
Satellite broadcasting ......................... 300,000 $ 183,443
BELL CABLEMEDIA ADRS* (UK)
Cable television operator ...................... 50,000 850,000
-----------
1,033,443
-----------
COMPUTER AND BUSINESS
SERVICES--4.3%
LOGICA (UK)
Computer services .............................. 260,000 1,477,658
SPS TRANSACTION SERVICES* (US)
Transaction processing services ................ 30,000 918,750
SUNGARD DATA SYSTEMS (US)
Computer services aimed at
disaster recovery .............................. 33,000 1,530,375
UNILOG (France)
Computer consultants ........................... 13,441 896,157
UNIPALM GROUP* (UK)
Distributor of networking products ............... 150,000 369,495
-----------
5,192,435
-----------
COMPUTER HARDWARE/
PERIPHERALS--8.7%
DELL COMPUTER* (US)
Developer and manufacturer of
IBM compatible personal
computers ...................................... 37,000 2,023,438
ELECTRONICS FOR IMAGING* (US)
Color copier servers ........................... 40,000 1,835,000
EMC* (US)
Mainframe storage devices ...................... 140,000 2,765,000
LINX PRINTING TECHNOLOGY (UK)
Manufacturer of ink jet printers ............... 595,000 766,360
MYLEX (US)
Computer/electronics ........................... 110,000 1,216,875
PSION (UK)
Manufacturer of hand-held
computers ...................................... 350,000 1,791,930
-----------
10,398,603
-----------
COMPUTER SOFTWARE--12.4%
ACORN COMPUTER* (UK)
Leading UK supplier to the
educational computer market .................... 850,000 1,190,595
COMPUTER SOFTWARE (CONTINUED)
ACT (UK)
Provider of software products and
services for the financial services
industry ....................................... 400,000 708,400
CBT GROUP ADRS (Ireland)
Computer-based training ........................ 40,000 1,065,000
COMPUWARE* (US)
Mainframe systems software ..................... 60,000 1,560,000
Learmonth & Burchett
MANAGEMENT SYSTEMS (UK)
Supplier of computer aided
software engineering tools and
consultancy services ........................... 600,000 1,439,340
MAPINFO* (US)
Developer of desktop mapping
software ....................................... 40,000 1,200,000
MERCURY INTERACTIVE (US)
Automated testing software ..................... 50,000 1,062,500
MISYS (UK)
Provider of software products and
services for the financial services
industry ....................................... 25,000 146,913
OPEN ENVIRONMENT (US)
Client-server application
development tools .............................. 20,000 357,500
PARAMETRIC TECHNOLOGY* (US)
Mechanical design software ..................... 30,000 1,421,250
RENAISSANCE SOLUTIONS (US)
Client-server systems integration
services and management
consulting ..................................... 11,000 140,250
SYNOPSYS* (US)
Developer of design software ................... 28,000 1,522,500
TGV SOFTWARE (US)
Internetworking software
products ....................................... 50,000 950,000
TRANSACTION SYSTEMS
ARCHITECTS (US)
Electronic commerce software and
services provider ............................ 50,000 1,028,125
VMARK SOFTWARE (US)
Software for commercial
applications ................................. 70,000 1,023,750
-----------
14,816,123
-----------
CONTRACT MANUFACTURING--3.8%
ACT MANUFACTURING* (US)
Electronic manufacturing services ............ 56,000 798,000
ALTRON* (US)
Manufacturer of printed circuit
boards ....................................... 70,000 1,067,500
17
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND (CONTINUED)
SHARES VALUE
------ -----
CONTRACT MANUFACTURING (continued)
GLORY KOGYO (Japan)
Manufacturer and major exporter
of currency-handling machines ................ 21,000 $ 638,290
HANA MICROELECTRONICS (Thailand)
Contract manufacturer ........................ 70,000 199,227
RAINFORD* (UK)
Contract manufacturer specializing
in the cellular base station market .......... 150,000 738,990
VENTURE MANUFACTURING* (Singapore)
Contract manufacturer ........................ 441,000 1,050,075
-----------
4,492,082
-----------
DISTRIBUTORS--0.7%
ELECTROCOMPONENTS (UK)
Distributor of electronic
components ................................... 100,000 862,960
-----------
ELECTRONICS--13.2%
GRASEBY (UK)
Electronic components and
environmental and medical
instrumentation .............................. 200,000 466,900
HIROSE ELECTRONICS (Japan)
Manufacturer of specialist
connectors ..................................... 18,000 1,092,075
HITACHI (Japan)
Diversified electronics
manufacturer ................................... 95,000 964,381
KYOCERA (Japan)
Semiconductor packaging,
capacitors, and cellular
component supplier ............................. 18,000 1,389,136
MOTOROLA (US)
Semiconductors and electronic
equipment ...................................... 24,000 1,365,000
MURATA MANUFACTURING (Japan)
Manufacturer of ceramic
capacitors and filters ......................... 30,000 1,203,918
NICHICON (Japan)
Manufacturer of capacitors ..................... 74,000 1,054,319
Philips Electronics (Netherlands)
Consumer and industrial
electronics .................................... 36,000 1,368,347
SAMSUNG ELECTRONICS GDRS+
(South Korea)
Manufacturer of consumer
electronics and semiconductors ................. 18,000 850,500
ELECTRONICS (continued)
Samsung Electronics Rights*
(South Korea)
Manufacturer of consumer
electronics and semiconductors ................. 3,562 168,305
SUMITOMO SITIX (Japan)
Supplier of silicon wafers ..................... 45,000 566,340
TDK (Japan)
Leader in magnetic tapes and
heads for disc drives .......................... 21,000 957,435
TOSHIBA (Japan)
Diversified manufacturer of
consumer and industrial
electronics .................................... 90,000 597,329
UNITECH (UK)
Manufacturer of power supplies ................. 200,000 1,181,740
VARITRONIX INTERNATIONAL (Hong Kong)
Manufacturer of LCDs ........................... 320,000 467,063
YAGEO GDRS*+ (Taiwan)
Manufacturer of passive components ............. 31,152 623,040
YAMAHA (Japan)
Consumer electronics and sound chip technology .. 70,000 939,151
YAMAICHI ELECTRONICS (Japan)
Manufacturer of integrated circuits' sockets ..... 29,000 509,587
-----------
15,764,566
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY--1.8%
PROTEIN DESIGN LABS (US)
Antibody technology research and
development .................................... 80,000 1,980,000
TOWA PHARMACEUTICAL* (Japan)
Supplier of generic pharmaceuticals ............ 3,300 191,202
-----------
2,171,202
-----------
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND (CONTINUED)
SHARES VALUE
------ -----
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE--8.3%
ASPECT TELECOMMUNICATIONS (US)
Automated call distribution
equipment ...................................... 40,000 $ 1,675,000
BOSTON TECHNOLOGY (US)
Voice processing systems ....................... 60,000 903,750
CIDCO (US)
Telecommunications equipment ................... 50,000 1,800,000
DSC COMMUNICATIONS* (US)
Digital telephone switching systems ............ 60,000 2,216,250
LANNET DATA COMMUNICATIONS* (Israel)
Local area networking equipment ................ 60,000 1,170,000
18
<PAGE>
================================================================================
April 30, 1995
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND (CONTINUED)
SHARES VALUE
------ -----
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE (continued)
L.M. ERICSSON (Series B) (Sweden)
Manufacturer of telecom-
munications equipment .......................... 17,000 $1,122,474
S. MEGGA INTERNATIONAL
(Hong Kong)
Manufacturer and distributor of
telecommunications equipment ................... 1,124,000 62,428
TELEMETRIX (UK)
Networking components .......................... 875,000 972,038
-----------
9,921,940
-----------
PRINTING AND PUBLISHING--0.8%
TOYO INK MANUFACTURING (Japan)
Digital printing ............................... 140,000 920,867
-----------
SEMICONDUCTORS--16.8%
ADAPTEC* (US)
Manufacturer, computer data
flow systems .................................. 50,000 1,606,250
ADVANCED MICRO DEVICES* (US)
Microprocessors and
memory circuits ............................... 50,000 1,800,000
ALTERA* (US)
Manufacturer of integrated
circuits ...................................... 30,000 2,424,375
CYPRESS SEMICONDUCTOR* (US)
Electrical components ......................... 70,000 2,117,500
DSP COMMUNICATIONS (US)
Digital signal processor-
based software ................................ 50,000 787,500
EXAR* (US)
Manufacturer of mixed-signal
circuits ...................................... 55,000 1,443,750
INTEL (US)
Semiconductor memory circuits ................. 20,000 2,048,750
LINEAR TECHNOLOGY (US)
Producer of high-performance
analog semiconductors ......................... 27,000 1,603,125
QUALITY SEMICONDUCTOR (US)
Semiconductor manufacturer .................... 98,000 1,139,250
ROHM (Japan)
Producer of custom linear
integrated circuits ........................... 30,000 1,385,574
TOWER SEMICONDUCTOR* (Israel)
Semiconductor foundry services ................ 90,000 1,912,500
XILINX (US)
Field programmable gate arrays ..................... 24,000 1,836,000
-----------
20,104,574
-----------
SEMICONDUCTOR CAPITAL
EQUIPMENT--18.0%
ADVANTEST (Japan)
Manufacturer of semiconductor
testing equipment ............................. 40,000 1,291,778
APPLIED MATERIALS* (US)
World's largest supplier of
semiconductor fabrication
equipment ..................................... 33,000 2,037,750
ASM LITHOGRAPHY HOLDINGS*
(Netherlands)
Semiconductor capital equipment ............... 40,800 1,111,800
ASM PACIFIC TECHNOLOGY (Hong Kong)
Manufacturer of semiconductor
production equipment .......................... 854,000 573,599
ATMEL (US)
High-performance semiconductor
manufacturing ................................. 30,000 1,316,250
COGNEX* (US)
Manufacturer of machine vision
systems ....................................... 55,000 1,629,375
CREDENCE SYSTEMS* (US)
Automated semiconductor test
equipment ..................................... 40,000 1,460,000
ELECTROGLAS* (US)
Semiconductor engineering ..................... 40,000 1,750,000
FSI INTERNATIONAL* (US)
Manufacturer of semiconductor
production equipment .......................... 29,000 1,337,625
FUSION SYSTEMS* (US)
Semiconductor manufacturing
equipment ...................................... 40,000 1,255,000
GENUS* (US)
Semiconductor production
equipment ...................................... 100,000 1,050,000
LAM RESEARCH* (US)
Manufacturer of plasma
etching equipment .............................. 40,000 2,025,000
PRI AUTOMATION (US)
Semiconductor factory automation
software ....................................... 70,000 1,820,000
SEMITOOL (US)
Semiconductor capital equipment ................ 45,000 1,080,000
TOKYO ELECTRON (Japan)
Largest Japanese producer of
semiconductor production
equipment ...................................... 25,000 777,679
UNIPHASE (US)
Optoelectronic inspection
stations ....................................... 50,000 987,500
-----------
21,503,356
-----------
19
<PAGE>
================================================================================
PORTFOLIOS OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND (continued)
SHARES VALUE
------ -----
TELECOMMUNICATIONS--1.8%
DDI (Japan)
Long distance and cellular
operator ....................................... 50 $ 439,300
NTT DATA COMMUNICATIONS (Japan)
Value-added network operator ................... 40 679,133
PAKISTAN TELECOM GDRS* (Pakistan)
Telecommunications services .................... 2,800 295,400
TELEBRAS ADRS (Brazil)
Telecommunications services .................... 8,000 286,117
TELECOM ITALIA (Italy)
Telecommunications services .................... 190,000 505,447
-----------
2,205,397
-----------
MISCELLANEOUS--1.6%
ISOTRON (UK)
Irradiation services supplier .................. 220,000 842,996
TRAFFIC MASTER* (UK)
Supplier of traffic information services ....... 400,000 1,088,360
-----------
1,931,356
-----------
TOTAL COMMON STOCKS
(Cost $94,228,973) ............................. 111,318,904
-----------
CONVERTIBLE BONDS--1.1%
Electronics--0.1%
KINPO ELECTRONICS (Taiwan)
3%, due 7/21/2001
Office equipment .................................... $150,000 114,750
-----------
SEMICONDUCTORS--1.0%
UNITED MICRO ELECTRONICS (Taiwan)
11/4%, due 6/8/2004
Manufacturer of semiconductors ................. 814,000 1,257,121
-----------
TOTAL CONVERTIBLE BONDS
(Cost $1,309,312) .............................. 1,371,871
-----------
PREFERRED STOCKS--1.5%
(Cost $1,706,195)
ELECTRONICS--1.5%
NOKIA (Finland)
Wide-area switching equipment .................. 44,000 shs. 1,792,344
-----------
TOTAL INVESTMENTS--95.7%
(Cost $97,244,480) ............................. 114,483,119
OTHER ASSETS LESS
LIABILITIES--4.3% ........................... 5,123,739
------------
NET ASSETS--100.0% .................................. $119,606,858
------------
- --------------------
*Non-income producing security.
**Principal amount reported in French francs.
(0)Principal amount reported in British pounds.
+Rule 144A security.
++Principal amount reported in Belgian francs.
+++Principal amount reported in Spanish pesetas.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
20
<PAGE>
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES April 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
GLOBAL SMALLER GLOBAL
INTERNATIONAL COMPANIES TECHNOLOGY
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Common stocks ................................... $ 76,191,905 $ 92,813,703 $ 111,318,904
Convertible bonds ............................... 1,909,726 1,466,922 1,371,871
Preferred stocks ..................................... -- -- 1,792,344
--------------- --------------- ---------------
Total investments .................................... 78,101,631 94,280,625 114,483,119
Cash ................................................. 3,682,042 8,251,050 10,242,712
Receivable for securities sold ....................... 2,484,629 112,720 3,513,487
Receivable for Capital Stock sold .................... 761,450 1,273,192 4,376,538
Receivable for dividends and interest ................ 518,638 264,384 122,841
Net unrealized appreciation on forward currency
contracts ....................................... 298,809 141,368 --
Expenses prepaid to shareholder service agent ........ 54,540 77,036 73,587
Deferred organizational expenses ..................... 13,463 14,701 --
Receivable from associated companies ................. 8,537 10,660 --
Other ................................................ 7,331 6,796 14,508
--------------- --------------- ---------------
TOTAL ASSETS ......................................... 85,931,070 104,432,532 132,826,792
--------------- --------------- ---------------
LIABILITIES:
Payable for securities purchased ..................... 1,730,763 1,580,436 12,584,726
Payable for Capital Stock repurchased ................ 153,909 273,334 432,934
Net unrealized depreciation on forward currency
contracts ....................................... -- -- 10,920
Accrued expenses, taxes, and other .................. 164,555 194,389 191,354
------------ ------------ ------------
TOTAL LIABILITIES ............................. 2,049,227 2,048,159 13,219,934
------------ ------------ ------------
NET ASSETS .................................... $ 83,881,843 $102,384,373 $119,606,858
============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ................................................ $ 3,735 $ 4,626 $ 9,797
Class D ................................................ 1,545 4,055 2,348
Additional paid-in capital ............................. 80,248,765 88,639,384 96,600,647
Accumulated net investment loss ........................ (1,553,004) (1,232,734) (448,135)
Undistributed net realized gain on investments ......... 861,120 2,527,185 6,207,445
Net unrealized appreciation (depreciation) of
investments ...................................... (4,125,018) 7,494,357 14,622,788
Net unrealized appreciation on translation of assets and
liabilities denominated in foreign currencies and
forward currency contracts ....................... 8,444,700 4,947,500 2,611,968
------------- ------------- -------------
NET ASSETS ............................................. $ 83,881,843 $ 102,384,373 $ 119,606,858
============= ============= =============
NET ASSETS:
Class A ........................................ $ 59,563,868 $ 54,952,411 $ 96,644,965
Class D ........................................ $ 24,317,975 $ 47,431,962 $ 22,961,893
SHARES OF CAPITAL STOCK OUTSTANDING:
Class A ........................................ 3,735,307 4,625,946 9,796,844
Class D ........................................ 1,544,720 4,055,249 2,347,534
NET ASSET VALUE PER SHARE:
Class A ........................................ $ 15.95 $ 11.88 $ 9.86
Class D ........................................ $ 15.74 $ 11.70 $ 9.78
</TABLE>
- ---------------
See notes to financial statements.
21
<PAGE>
================================================================================
STATEMENTS OF OPERATIONS For the six months ended April 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
Global Smaller Global
International Companies Technology
Fund Fund Fund
------------- -------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends ................................................................. $ 598,871 $ 359,949 $ 204,178
Interest .................................................................. 155,250 227,456 212,310
------------- ------------- -------------
Total investment income* .................................................. 754,121 587,405 416,488
------------- ------------- -------------
EXPENSES:
Management fee ............................................................ 381,970 443,463 400,449
Distribution and service fees ............................................. 126,202 249,266 138,249
Shareholder account services .............................................. 105,570 155,124 146,881
Custody and related services .............................................. 62,694 49,697 32,937
Auditing and legal fees ................................................... 27,891 29,348 30,189
Registration .............................................................. 19,509 20,362 52,052
Shareholder reports and communications .................................... 11,650 12,878 9,084
Directors' fees and expenses .............................................. 4,636 4,831 4,861
Amortization of organizational expenses ................................... 3,672 3,042 --
Miscellaneous ............................................................. 3,804 3,720 2,072
------------- ------------- -------------
Total expenses ............................................................ 747,598 971,731 816,774
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) .............................................. 6,523 (384,326) (400,286)
------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments ................................... (161,454) 1,841,030 5,923,370
Net realized gain (loss) from foreign currency transactions ............... (622,871) (22,183) 239,953
Net change in unrealized appreciation of investments ...................... (8,416,564) (443,226) 9,651,947
Net change in unrealized appreciation on translation of
assets and liabilities denominated in foreign currencies
and forward currency contracts ...................................... 4,246,866 1,941,322 1,958,561
------------- ------------- -------------
Net gain (loss) on investments and foreign currency
transactions ........................................................ (4,954,023) 3,316,943 17,773,831
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ......................... $ (4,947,500) $ 2,932,617 $ 17,373,545
============= ============= =============
*Net of foreign taxes withheld as follows: ................................ $82,833 $54,596 $27,319
- -----------------
See notes to financial statements.
</TABLE>
22
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
INTERNATIONAL FUND COMPANIES FUND TECHNOLOGY FUND
--------------------------- -------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS 5/23/94*
ENDED ENDED ENDED ENDED ENDED TO
4/30/95 10/31/94 4/30/95 10/31/94 4/30/95 10/31/94
---------- --------- --------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............. $ 6,523 $ 75,496 $ (384,326) $ (678,464) $ (400,28) $ (67,662)
Net realized gain (loss) on
investments ............................ (161,454) 3,522,706 1,841,030 3,266,517 5,923,370 704,929
Net realized gain (loss) from
foreign currency transactions .......... (622,871) 24,244 (22,183) (182,742) 239,953 (50,053)
Net change in unrealized
appreciation/depreciation
of investments ......................... (8,416,564) (1,230,974) (443,226) 4,948,657 9,651,947 4,970,841
Net change in unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts ............. 4,246,866 4,659,861 1,941,322 3,205,881 1,958,561 653,407
----------- ----------- ------------ ----------- ------------ ----------
Increase (decrease) in net
assets from operations ................ (4,947,500) 7,051,333 2,932,617 10,559,849 17,373,545 6,211,462
----------- ----------- ------------ ----------- ------------ ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income--
Class A .......................... -- (25,793) -- -- -- --
Net realized gain on investments:
Class A .......................... (2,535,690) (762,068) (1,358,384) (158,731) (506,847) --
Class D .......................... (858,276) (83,469) (1,134,039) (90,380) (84,094) --
----------- ----------- ------------ ----------- ------------ ----------
Decrease in net assets from
distributions .......................... (3,393,966) (871,330) (2,492,423) (249,111) (590,941) --
----------- ----------- ------------ ----------- ------------ ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A .......................... 6,927,197 25,380,280 12,196,011 20,287,082 36,181,058 45,695,152
Class D .......................... 7,166,678 18,420,000 10,541,365 25,897,256 13,804,288 5,533,969
Shares issued in payment of
dividends--Class A ..................... -- 966 -- -- -- --
Exchanged from associated Funds:
Class A .......................... 1,710,918 2,407,044 1,381,011 3,539,187 3,954,470 1,899,467
Class D .......................... 520,577 909,398 557,814 947,336 1,686,702 456,736
Shares issued in payment of gain
distributions:
Class A .......................... 2,386,633 722,715 1,265,594 146,652 470,951 --
Class D .......................... 815,096 70,003 1,065,232 84,031 81,693 --
----------- ----------- ------------ ----------- ------------ ------------
Total .................................... 19,527,099 47,910,406 27,007,027 50,901,544 56,179,162 53,585,324
----------- ----------- ------------ ----------- ------------ ------------
Cost of shares repurchased:
Class A .......................... (6,430,175) (3,283,415) (4,123,198) (3,603,074) (4,759,185) (2,482,871)
Class D .......................... (1,108,456) (620,963) (1,902,629) (2,704,805) (586,872) (54,697)
Exchanged into associated
Funds:
Class A .......................... (1,608,509) (585,482) (2,287,844) (940,600) (3,717,509) (36,732)
Class D .......................... (981,290) (1,558,697) (1,335,632) (424,467) (1,509,605) (4,223)
----------- ----------- ------------ ----------- ------------ -----------
Total .................................... (10,128,430) (6,048,557) (9,649,303) (7,672,946) (10,573,171) (2,578,523)
----------- ----------- ------------ ----------- ------------ -----------
Increase in net assets
from capital share
transactions ........................... 9,398,669 41,861,849 17,357,724 43,228,598 45,605,991 51,006,801
----------- ----------- ------------ ----------- ------------ -----------
Increase in net assets ................... 1,057,203 48,041,852 17,797,918 53,539,336 62,388,595 57,218,263
NET ASSETS:
Beginning of period ...................... 82,824,640 34,782,788 84,586,455 31,047,119 57,218,263 --
----------- ----------- ------------ ----------- ------------ -----------
End of period ............................ $83,881,843 $82,824,640 $102,384,373 $84,586,455 $119,606,858 $57,218,263
=========== =========== ============ =========== ============ ===========
</TABLE>
*Commencement of operations.
- ------------------
See notes to financial statements.
23
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Henderson Global Fund Series, Inc. (the "Fund") consists of three
separate Series: the "International Fund," the "Global Smaller Companies Fund"
(formerly the "Global Emerging Companies Fund"), and the "Global Technology
Fund." Each Series of the Fund offers two classes of shares. All shares that
existed prior to the commencement of Class D shares (September 21, 1993, in the
case of the International Fund, and May 3, 1993, in the case of the Global
Smaller Companies Fund) have been classified as Class A shares. The Global
Technology Fund had no operations prior to its commencement on May 23, 1994,
other than those relating to organizational matters.
Class A shares are sold with an initial sales charge of up to 4.75% and a
continuing service fee of up to 0.25% on an annual basis. Class D shares are
sold without an initial sales charge but are subject to a distribution fee of 1%
and contingent deferred sales load ("CDSL") of 1% imposed on certain redemptions
made within one year of purchase. The two classes of shares for each Series
represent interests in the same portfolio of investments, have the same rights
and are generally identical in all respects except that each class bears its
separate distribution and certain class expenses and has exclusive voting rights
with respect to any matter to which a separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with
generally accepted accounting principles, are given below:
a. Securities traded on a foreign exchange or over-the-counter market are valued
at the last sales price on the primary exchange or market on which they are
traded. United Kingdom securities and securities for which there are no
recent sales transactions are valued based on quotations provided by primary
market makers in such securities. Any securities for which recent market
quotations are not readily available are valued at fair value determined in
accordance with procedures approved by the Board of Directors. Short-term
holdings which mature in more than 60 days are valued at current market
quotations. Short-term holdings maturing in 60 days or less are valued at
amortized cost.
b. Investments in foreign securities will usually be denominated in foreign
currency, and each Series may temporarily hold funds in foreign currencies.
The books and records of the Fund are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets, and liabilities,
at the closing daily rate of exchange as reported by a pricing service;
(ii) purchases and sales of investment securities, income, and expenses, at
the rate of exchange prevailing on the respective dates of such
transactions.
The Fund's net asset values per share 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 Fund. The rate of exchange between the
U.S. dollar and other currencies is determined by the forces of supply and
demand in the foreign exchange markets.
Net realized foreign exchange gains and losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
24
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of portfolio securities and other foreign currency denominated
assets and liabilities at period end, resulting from changes in exchange
rates.
The Fund separates 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 portfolio. Similarly,
the Fund separates 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.
c. The Fund may enter into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its 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.
d. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized, if
any, annually. Withholding taxes on foreign dividends and interest have been
provided for in accordance with the Fund's understanding of the applicable
country's tax rules and rates.
e. 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 reclassifications will have no effect on net assets,
results of operations, or net asset value per share of the Fund.
f. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Dividends receivable and payable are recorded on ex-dividend dates.
Interest income is recorded on an accrual basis.
g. Deferred organizational expenses are being amortized on a straight-line basis
over a five-year period beginning with the commencement of operations of the
International Fund and Global Smaller Companies Fund.
h. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares based
upon the relative proportion of the value of shares outstanding of each
class. Class-specific expenses, which include distribution and service fees
and any other items that can be specifically attributed to a particular
class, are charged directly to such class.
25
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended April 30, 1995, were as follows:
SERIES PURCHASES SALES
- ------ ---------- -----
International Fund ..................... $24,293,951 $16,629,096
Global Smaller
Companies Fund .................... 38,986,062 24,115,229
Global Technology Fund ................. 84,998,431 33,123,570
At April 30, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio
securities, including the effects of foreign currency translations, were as
follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
- ------ ------------ ------------
International Fund ..................... $ 7,848,207 $ 3,837,047
Global Smaller
Companies Fund .................... 16,999,010 4,714,793
Global Technology Fund ................. 19,839,492 2,600,853
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities. Compensation of
all officers of the Fund, all directors of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund and the Manager is
paid by the Manager. The Manager receives a fee, calculated daily and payable
monthly, equal to 1.00% per annum of the Fund's average daily net assets, of
which 0.90% is paid to Seligman Henderson Co. (the "Subadviser"), a 50% owned
affiliate of the Manager. During the six months ended April 30, 1995, the
Manager, at its discretion, waived a portion of its fees for the International
Fund Class D shares equal to $13,168.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares and an affiliate of the Manager, received
concessions after commissions were paid to dealers for sale of Class A shares as
follows:
DEALER DISTRIBUTOR
SERIES COMMISSIONS CONCESSIONS
- ------ ------------ -----------
International Fund ....................... $ 125,244 $ 5,864
Global Smaller
Companies Fund ...................... 372,980 28,171
Global Technology Fund ................... 1,197,173 146,412
The Fund has an Administration, Shareholder Services and Distribution
Plan (the "Plan") with respect to Class A shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee of up to 0.25% on an annual basis, payable quarterly, of the
average daily net assets of the Class A shares attributable to the particular
service organizations for providing personal services and/or the maintenance of
shareholder accounts. The Distributor charges such fees to the Fund pursuant to
the Plan. For the six months ended April 30, 1995, fees incurred by the
International Fund, the Global Smaller Companies Fund and the Global Technology
Fund aggregated $21,162, $46,027, and $74,436, respectively, or 0.07%, 0.19%,
and 0.22%, respectively, per annum of the average daily net assets of Class A
shares.
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class D shares for which the organizations are responsible, and
fees for providing other distribution assistance of up to 0.75% on an annual
basis of such average daily net assets. Such fees are paid monthly by the Fund
to the Distributor pursuant to the Plan. For the six months ended
26
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
April 30, 1995, fees incurred by the International Fund, the Global Smaller
Companies Fund and the Global Technology Fund amounted to $105,040, $203,239,
and $63,813, respectively, or 1% per annum of the average daily net assets of
Class D shares of each Series.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year of purchase. For the six
months ended April 30, 1995, such charges amounted to $3,815 for the
International Fund, $7,004 for the Global Smaller Companies Fund, and $4,725 for
the Global Technology Fund.
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost, for shareholder account services the following
amounts:
SERIES AMOUNT
- ------ --------
International Fund ........................................ $105,570
Global Smaller Companies Fund ............................. 155,124
Global Technology Fund .................................... 146,881
For the six months ended April 30, 1995, Seligman Services, Inc., an
affiliate of the Manager, received commissions of $226, $2,001 and $1,230 for
the sale of Class A shares of the International Fund, the Global Smaller
Companies Fund and the Global Technology Fund, respectively. Seligman Services,
Inc. also received $327, $91 and $671 from the Distributor for the sale of Class
D shares of the International Fund, the Global Smaller Companies Fund and the
Global Technology Fund, respectively.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Subadviser, the Distributor, Seligman Services, Inc. and/or
Seligman Data Corp.
Fees of $15,000 were incurred by the Fund for the legal services of
Sullivan & Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balances thereof at April 30, 1995, were as
follows:
SERIES AMOUNT
- ------ --------
International Fund .......................................... $7,580
Global Smaller Companies Fund ............................... 4,381
Global Technology Fund ...................................... 1,597
5. Class-specific expenses charged to Class A and Class D for the six months
ended April 30, 1995, which are included in the corresponding captions of the
Statements of Operations, were as follows:
<TABLE>
<CAPTION>
SHAREHOLDER
DISTRIBUTION REPORTS AND
SERIES AND SERVICE FEES REGISTRATION COMMUNICATIONS
------ ----------------- ------------ -------------
<S> <C> <C> <C>
International Fund:
Class A ................................ $21,162 $ 3,765 $1,292
Class D ................................ 105,040 3,129 980
Global Smaller Companies Fund:
Class A ................................ 46,027 3,388 2,430
Class D ................................ 203,239 3,881 1,721
Global Technology Fund:
Class A ................................ 74,436 16,537 1,839
Class D ................................ 63,813 6,500 562
</TABLE>
27
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
6. At April 30, 1995, the Fund had outstanding forward exchange currency
contracts to buy/sell foreign currency as follows:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACT CONTRACT IN EXCHANGE APPRECIATION
SERIES DATE TO RECEIVE TO DELIVER FOR (DEPRECIATION)
------ ----------- ---------- ---------- ------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
International Fund: 5/02/95 $ 31,527 NLG1 48,750 $ (227)
5/02/95 53,014 DKK2 288,000 (175)
5/03/95 370,281 CHF3 422,454 (1,648)
5/11/95 $8,500,000 JPY4 689,418,000 300,859
--------
$298,809
========
Global Smaller
Companies Fund: 5/01/95 301,859 IDR5 674,051,824 $ --
5/11/95 4,000,000 JPY4 324,432,000 141,581
5/03/95 104,715 SEK6 761,277 (213)
--------
$141,368
========
Global Technology Fund: 5/01/95 1,151,373 JPY4 96,139,673 $(9,911)
5/03/95 487,507 SEK6 3,544,178 (990)
5/02/95 14,687 SGD7 20,452 (19)
--------
$(10,920)
========
</TABLE>
- ----------------------
1Dutch guilders
2Danish krones
3Swiss francs
4Japanese yen
5Indonesian rupiahs
6Swedish kronas
7Singapore dollar
28
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
7. The Fund has 150,000,000 shares of Capital Stock authorized. The Board of
Directors, at its discretion, may classify any unissued shares of Capital Stock
between any Series of the Fund. As of April 30, 1995, the Board of Directors had
classified 50,000,000 shares, 50,000,000 shares, and 50,000,000 shares, for the
International Fund, the Global Smaller Companies Fund, and the Global Technology
Fund, respectively, all at par value of $.001 per share. Transactions in shares
of Capital Stock were as follows:
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
INTERNATIONAL FUND COMPANIES FUND TECHNOLOGY FUND
----------------------- -------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS 5/23/94*
ENDED ENDED ENDED ENDED ENDED TO
4/30/95 10/31/94 4/30/95 10/31/94 4/30/95 10/31/94
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ............ 435,652 1,527,360 1,079,855 1,882,978 4,200,642 6,132,488
Class D ............ 459,901 1,103,072 951,168 2,398,991 1,604,036 726,187
Shares issued in payment
of dividends--Class A -- 545 -- -- -- --
Exchanged from
associated Funds:
Class A ............ 107,659 144,172 122,799 321,062 449,283 249,622
Class D ............ 33,035 53,559 49,610 86,334 198,152 60,800
Shares issued in
payment of gain
distributions:
Class A ............ 152,467 44,311 117,293 14,114 59,388 --
Class D ............ 52,587 4,297 99,928 8,119 10,354 --
--------- ---------- ---------- ---------- ---------- ----------
Total 1,241,301 2,877,316 2,420,653 4,711,598 6,521,855 7,169,097
--------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A ............ (416,976) (194,987) (367,795) (328,149) (547,068) (319,927)
Class D ............ (72,018) (36,905) (172,279) (247,483) (68,533) (7,166)
Exchanged into
associated Funds:
Class A ............ (103,983) (34,565) (204,162) (87,401) (422,919) (4,665)
Class D ............ (63,980) (92,115) (120,332) (39,069) (175,741) (555)
--------- ---------- ---------- ---------- ---------- ----------
Total ................ (656,957) (358,572) (864,568) (702,102) (1,214,261) (332,313)
--------- ---------- ---------- ---------- ---------- ----------
Increase in shares ... 584,344 2,518,744 1,556,085 4,009,496 5,307,594 6,836,784
========= ========== ========== ========== ========== ==========
</TABLE>
- -----------------
* Commencement of operations
29
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's financial highlights are presented on the following pages. The per
share operating performance data is designed to allow investors to trace the
operating performance, on a per share basis, from a Series' beginning net asset
value to the ending net asset value so that they may 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 for each item as disclosed in the financial statements to their
equivalent per share amounts, based on average shares outstanding. The total
return based on net asset value measures a Series' performance assuming
investors purchased shares at net asset value as of the beginning of the period,
reinvested dividends and capital gains paid at net asset value, and then sold
their shares at the net asset value per share on the last day of the period. The
total return computations do not reflect any sales charges investors may incur
in purchasing or selling shares of each Series. The total returns for periods of
less than one year are not annualized.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
----------------------------------------------------------------------------
CLASS A CLASS D
-------------------------------- -----------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31 4/7/92* SIX MONTHS YEAR 9/21/93**
ENDED --------------------- TO ENDED ENDED TO
4/30/95 1994 1993 10/31/92 4/30/95 10/31/94 10/31/93
----------- ---- ---- -------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ...... $17.67 $15.98 $11.89 $12.00 $17.53 $15.96 $15.23
------ ------ ------ ------ ------ ------ ------
Net investment income (loss) .............. 0.02 0.04 0.04 0.08 (0.04) (0.09) (0.03)
Net realized and unrealized gain
(loss) on investments ................... (1.77) 0.91 4.25 (0.23) (1.78) 0.91 1.17
Net realized and unrealized gain
(loss) on foreign currency
transactions ............................ 0.72 1.08 (0.17) 0.04 0.72 1.08 (0.41)
------ ------ ------ ------ ------ ------ ------
Increase (decrease) from investment
operations .............................. (1.03) 2.03 4.12 (0.11) (1.10) 1.90 0.73
Dividends paid -- (0.01) (0.03) -- -- -- --
Distributions from net gain realized ...... (0.69) (0.33) -- -- (0.69) (0.33) --
------ ------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset
value ................................... (1.72) 1.69 4.09 (0.11) (1.79) 1.57 0.73
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ............ $15.95 $17.67 $15.98 $11.89 $15.74 $17.53 $15.96
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET
ASSET VALUE ............................. (5.73)% 12.85% 34.78% (0.92)% (6.19)% 12.03% 4.79%
RATIOS/SUPPLEMENTAL DATA:***
Expenses to average net assets ............ 1.67%+ 1.63% 1.75% 1.75%+ 2.50%+ 2.50% 2.50%+
Net investment income (loss) to average
net assets .............................. 0.21%+ 0.27% 0.27% 1.25%+ (0.52)%+ (0.53)% (1.86)%+
Portfolio turnover ........................ 22.33% 39.59% 46.17% 12.77% 22.33% 39.59% 46.17%++
Net assets, end of period (000's
omitted) ................................$59,564 $62,922 $33,134 $14,680 $24,318 $19,903 $1,648
Without expense reimbursement:
Net investment income (loss) per share .... $(0.04) -- $(0.05) $(0.11) $(0.11)
Expenses to average net assets ............ 2.30% 2.92%+ 2.62%+ 2.67% 8.49%+
Net investment income (loss) to
average net assets ...................... (0.28)% 0.08%+ (0.64)%+ (0.70)% (7.84)%+
</TABLE>
- ------------------------
See footnotes on page 32.
30
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES FUND
----------------------------------------------------------------------------
CLASS A CLASS D
------------------------------------------- ------------------------------
SIX MONTHS 9/9/92* SIX MONTHS YEAR 5/3/93**
ENDED YEAR ENDED OCTOBER 31 TO ENDED ENDED TO
4/30/95 1994 1993 10/31/92 4/30/95 10/31/94 10/31/93
------- ---- ---- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $11.93 $9.98 $7.15 $7.14 $11.80 $9.94 $8.52
------ ----- ----- ----- ------ ----- -----
Net investment income (loss) ....... (0.03) (0.08) (0.02) -- (0.07) (0.16) (0.05)
Net realized and unrealized gain
(loss) on investments ............ 0.07 1.57 3.07 0.02 0.06 1.57 1.60
Net realized and unrealized gain
(loss) on foreign currency
transactions ..................... 0.24 0.52 (0.20) (0.01) 0.24 0.51 (0.13)
------ ----- ----- ----- ------ ----- -----
Increase from investment
operations ....................... 0.28 2.01 2.85 0.01 0.23 1.92 1.42
Dividends paid ..................... -- -- (0.02) -- -- -- --
Distributions from net gain
realized ......................... (0.33) (0.06) -- -- (0.33) (0.06) --
----- ----- ----- ----- ------ ----- -----
Net increase (decrease) in net
asset value ...................... (0.05) 1.95 2.83 (0.01) (0.10) 1.86 1.42
------ ----- ----- ----- ------ ----- -----
Net asset value, end of period ..... $11.88 $11.93 $9.98 $7.15 $11.70 $11.80 $9.94
====== ====== ===== ===== ====== ====== =====
TOTAL RETURN BASED ON NET
ASSET VALUE ...................... 2.64% 20.28% 39.86% 0.14% 2.24% 19.45% 16.67%
RATIOS/SUPPLEMENTAL DATA:***
Expenses to average net assets ..... 1.82%+ 1.92% 1.98% 1.75%+ 2.63%+ 2.70% 2.75%+
Net investment income (loss) to
average net assets ............... (0.51)%+ (0.77)% (0.29)% 0.13%+ (1.29)%+ (1.53)% (1.35)%+
Portfolio turnover ................. 29.13% 62.47% 60.03% -- 29.13% 62.47% 60.03%++
Net assets, end of period
(000's omitted) .................. $54,952 $46,269 $20,703 $1,562 $47,432 $38,317 $10,344
Without expense reimbursement:
Net investment income (loss) per
share ............................ $(0.18) $(0.07) $(0.11)
Expenses to average net assets ..... 3.90% 12.28%+ 4.25%+
Net investment income (loss) to
average net assets ............... (2.21)% (10.44)%+ (2.85)%+
</TABLE>
- ---------------------
See footnotes on page 32.
31
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL TECHNOLOGY FUND
--------------------------------------------
CLASS A CLASS D
--------------------- ----------------------
SIX MONTHS 5/23/94** SIX MONTHS 5/23/94**
ENDED TO ENDED TO
4/30/95 10/31/94 4/30/95 10/31/94
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ..... $8.37 $7.14 $8.34 $7.14
----- ----- ----- -----
Net investment loss ...................... (0.04) (0.01) (0.07) (0.04)
Net realized and unrealized gain on
investments ............................ 1.37 1.08 1.35 1.08
Net realized and unrealized gain from
foreign currency transactions .......... 0.23 0.16 0.23 0.16
----- ----- ----- -----
Increase from investment operations ...... 1.56 1.23 1.51 1.20
Dividends paid -- -- -- --
Distributions from net realized gain ..... (0.07) -- (0.07) --
----- ----- ----- -----
Net increase in net asset value .......... 1.49 1.23 1.44 1.20
----- ----- ----- -----
Net asset value, end of period ........... $9.86 $8.37 $9.78 $8.34
===== ===== ===== =====
TOTAL RETURN BASED ON NET ASSET VALUE .... 18.86% 17.23% 18.32% 16.81%
RATIOS/SUPPLEMENTAL DATA:***
Expenses to average net assets ........... 1.91%+ 2.00%+ 2.71%+ 2.75%+
Net investment loss to average net
assets ................................. (0.87)%+ (0.45)%+ (1.66)%+ (1.22)%+
Portfolio turnover ....................... 44.56% 29.20% 44.56% 29.20%
Net assets, end of period (000's
omitted) ...............................$96,645 $50,719 $22,962 $6,499
Without fee waiver:
Net investment loss per share ............ $(0.02) $(0.06)
Expenses to average net assets ........... 2.18%+ 3.36%+
Net investment loss to average net
assets ................................. (0.63)%+ (1.83)%+
</TABLE>
- ---------------------
* Commencement of investment operations.
** Commencement of operations.
*** The Manager and Subadviser, at their discretion, waived a portion of their
fees and/or reimbursed certain expenses for the periods presented.
+ Annualized.
++ For the year ended October 31, 1993.
See notes to financial statements.
32
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Henderson Global Fund Series, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the International Fund, the Global Smaller
Companies Fund and the Global Technology Fund Series of Seligman Henderson
Global Fund Series, Inc. as of April 30, 1995, the related statements of
operations for the six months then ended and of changes in net assets (1) for
the six months then ended and for the year ended October 31, 1994, for the
International Fund and the Global Smaller Companies Fund and (2) for the six
months ended April 30, 1995 and for the period from May 23, 1994 (commencement
of operations) to October 31, 1994 for the Global Technology Fund, and the
financial highlights for each of the periods presented. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at
April 30, 1995 by correspondence with the Fund's custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Henderson Global Fund Series, Inc. as of April 30, 1995, the results of
their operations, the changes in their net assets, and the financial highlights
for the respective stated periods, in conformity with generally accepted
accounting principles.
/s/Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
New York, New York
June 2, 1995
33
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
FRED E. BROWN
Director and Consultant,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2
Distinguished Policy Analyst,
Ohio State University
Director, USLife Corporation
ALICE S. ILCHMAN 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
FRANK A. MCPHERSON 2
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Chairman and Director, Baptist Medical Center
JOHN E. MEROW
Partner, Sullivan & Cromwell, Attorneys
BETSY S. MICHEL 2
Director or Trustee,
Various Organizations
WILLIAM C. MORRIS 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
JAMES C. PITNEY 3
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
Director, Public Service Enterprise Group
JAMES Q. RIORDAN 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
RONALD T. SCHROEDER 1
Managing Director, J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
JAMES N. WHITSON 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
BRIAN T. ZINO 1
Managing Director, J. & W. Seligman & Co. Incorporated
- -------------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
34
<PAGE>
================================================================================
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
WILLIAM C. MORRIS
Chairman
RONALD T. SCHROEDER
President
BRIAN ASHFORD-RUSSELL
Vice President
IAIN C. CLARK
Vice President
LAWRENCE P. VOGEL
Vice President
PAUL H. WICK
Vice President
THOMAS G. ROSE
Treasurer
FRANK J. NASTA
Secretary
- --------------------------------------------------------------------------------
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche llp
SUBADVISER
Seligman Henderson Co.
100 Park Avenue
New York, NY 10017
GENERAL DISTRIBUTOR
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
(800) 455-1777 Retirement Plan
Services
(800) 622-4597 24-Hour Automated
Telephone Access
Service
35
<PAGE>
================================================================================
SELIGMAN HENDERSON
GLOBAL FUND
SERIES, INC.
SELIGMAN HENDERSON INTERNATIONAL FUND
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES FUND
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
---------------------------------------
MID-YEAR REPORT
APRIL 30, 1995
---------------------------------------
INVESTING FOR
CAPITAL APPRECIATION
================================================================================
SELIGMAN HENDERSON CO.
100 Park Avenue New York New York 10017
- --------------------------------------------------------------------------------
New York London Tokyo
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Henderson Global Fund Series, Inc., which contains information about
the sales charges, management fee and other costs. Please read the prospectus
carefully before investing or sending money.
EQSH3 4/95
