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SELIGMAN HENDERSON
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GLOBAL FUND SERIES, INC.
[LOGO]
Global Technology Fund
Global Smaller Companies Fund
International Fund
ANNUAL REPORT OCTOBER 31, 1995
==============================
Investing for Capital Appreciation
<PAGE>
[Photo of Seligman]
Seligman
Established 1864
[Photo of Henderson]
Henderson
Investing Since 1872
Seligman Henderson --
The Experienced Global Managers
Seligman Henderson Co. is a joint venture established by J. & W. Seligman & Co.
of New York and Henderson Administration Group plc of London. With early
investments in industries such as railroads, electricity, and automobiles,
Seligman and Henderson were among the pioneers of global growth stock investing
in the late 19th and early 20th centuries. Together, the two firms have more
than 200 years of investment experience, and manage $32 billion in combined
assets.
Hardly newcomers to the investment company business, Seligman manages more than
40 investment companies, including Tri-Continental Corporation, which was
established in 1929. Henderson manages more than 60 investment companies,
including four portfolios that were launched before 1900.
Seligman Henderson is headquartered in New York, and Henderson has additional
offices in London, Singapore, and Tokyo. Seligman and Henderson combined employ
more than 100 investment professionals who seek investment opportunities by
focusing on companies around the world. Seligman Henderson places heavy emphasis
on company visits and meetings with management to confirm expectations of a
company's quality and direction. In fact, the investment professionals meet with
the managements of more than 5,000 companies around the world annually.
Seligman Henderson believes that investors looking for the best long-term growth
possibilities need to broaden their view to include non-US stocks. With teams of
dedicated professionals seeking exciting global investment opportunities,
Seligman Henderson provides investors insight into the world's changing markets.
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Seligman Henderson Global Technology Fund
Seligman Henderson Global Technology Fund, which commenced operations on May 23,
1994, seeks long-term capital appreciation by investing in securities of
companies around the world operating in the technology and technology-related
industries.
Seligman Henderson Global
Smaller Companies Fund
Seligman Henderson Global Smaller Companies Fund, which commenced operations on
August 31, 1992, seeks long-term capital appreciation by investing in
smaller-company stocks, with market capitalizations up to $750 million, in the
US and around the world.
Seligman Henderson
International Fund
Seligman Henderson International Fund, which commenced operations on April 2,
1992, seeks long-term capital appreciation by investing primarily in the stocks
of larger-sized companies outside the US with prospects for above-average
growth.
In addition to the Funds detailed in this report, the newest addition to the
Seligman Henderson Global Fund Series, Inc. is Seligman Henderson Global Growth
Opportunities Fund, introduced on November 1, 1995.
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<PAGE>
[LOGO]
To the Shareholders
We are pleased to provide you with this Annual Report for Seligman Henderson
Global Fund Series, Inc., which includes Seligman Henderson Global Technology
Fund, Seligman Henderson Global Smaller Companies Fund, and Seligman Henderson
International Fund. The Funds' investment results for the 12 months ended
October 31, 1995, were strong. In particular, Seligman Henderson Global
Technology Fund and Seligman Henderson Global Smaller Companies Fund
significantly outperformed the major market indices. Below is a brief overview
of global markets since we last reported to you in April. For your convenience,
Fund-specific information, including interviews with the Portfolio Managers, are
in the pages that follow.
Global Economic and Market Overview
Since April, we have seen a slowing in growth in most of the world's major
economies. In addition, inflation rates have consistently declined and have been
lower than expected, most notably in the US, Germany, and Japan. Historically,
this environment has been very positive for global equity investing.
The US economy continued to be marked by modest but sustained economic growth
and subdued inflation, providing a supportive backdrop for the US equity
markets, which continued to outpace international markets.
The UK economy was weaker than anticipated, with the growth rate of consumer
spending and exports both declining. Continental Europe experienced similar
weakness; despite a satisfactory start at the beginning of 1995, declining
consumer spending and export trends point to a slowing in economic growth.
Overall, European market performance varied. Switzerland, the UK, and Germany
performed reasonably and, by contrast, France and Italy fell sharply due to
ongoing political problems and scandals. Nevertheless, the outlook for the UK
and Continental Europe remains positive based on our belief that both the
current political turmoil and the slowdown in economic growth are temporary.
Japan's economy remained stagnant and governmental authorities have been able to
do little to improve the situation. However, the sharp change in the Yen/Dollar
relationship, with the Dollar strengthening substantially, was an important
turnaround. It was induced by a major change in sentiment, particularly in the
US, with the realization that any further strengthening of the Yen could
seriously damage Japan's economy, with probable negative effects globally. The
Japanese stock market declined in the past six months; however, this masked a
sharp gain in the past three months, with the market rising almost 25% from its
low in local currency terms. Looking ahead, the promise of additional government
spending, interest rates at an all-time low of 0.5%, and a weakened Yen, all
point to a positive outlook for Japan in 1996.
Elsewhere in Asia, the picture was mixed. For example, economic growth has
slowed considerably in Hong Kong, but inflation remains high. China's economy,
however, has returned to a more sustainable growth path, thus helping control
inflation. By contrast, Malaysia and Thailand continue to show evidence of
overheating, with current account deficits worsening, and inflation poised to
rise. Market performance varied: Hong Kong, Korea, and Indonesia all remained
relatively firm, each rising by more than 10%, while Malaysia and Thailand both
fell sharply in recent months.
We remain positive on the outlook for Seligman Henderson Global Fund Series, as
discussed in more detail in the pages ahead. We hope you enjoy the new format of
this report, and we welcome any comments or suggestions. Seligman Henderson
looks forward to continuing to help you meet your global investment needs in the
years ahead.
By order of the Board of Directors,
/s/ William Morris /s/ Brian T. Zino /s/ Iain C. Clark
William C. Morris Brian T. Zino Iain C. Clark
Chairman President Chief Investment Officer
Seligman Henderson Co.
December 1, 1995
1
<PAGE>
SELIGMAN
HENDERSON
GLOBAL
TECHNOLOGY
FUND
Interview with
Brian Ashford-Russell
and Paul H. Wick,
Portfolio Managers
[Photo of International Team]
International Team:
From Left: Michael Wood-Martin,
Brian Ashford-Russell
(Portfolio Manager),
Nicky Barker
[Photo of US Team]
US Team:
From Left: Gus Scacco,
Carlene Palia, Shanean Austin,
Bruce Zirman, (seated)
Arsen Mrakovcic, Paul Wick
(Portfolio Manager)
Economic Factors Affecting
Seligman Henderson Global Technology Fund
"In the past 12 months, the economic background worldwide has been largely
supportive for technology shares. While economic growth in most major economies
slowed in the second and third quarters of 1995, capital spending trends
remained robust and, most importantly from the perspective of the technology
investor, it is quite clear that technology is accounting for an increasing
proportion of business investment. Even the depressed consumer sector has
witnessed the same trend: despite continuing weakness in consumption spending
around the globe, the one area where consumer demand appears to remain strong is
technology, particularly personal computing. Although the implementation of
technology overseas significantly lags the US, it is accelerating strongly and
we continue to see evidence of growing demand for technology goods and
services."
Your Managers' Investment Strategy
"Throughout the year, we have maintained a weighting in the US towards the high
end of our expected long-term range, reflecting our optimism about earnings
prospects for the US technology group. In May, we expanded our commitment to
Japan based on our belief that the semiconductor cycle, particularly insofar as
it affects production equipment suppliers, was two years behind the US but
likely to catch up rapidly. This prospect, together with our bearishness on the
Yen and the emergence of -- for the first time in 12 years -- a valuation gap
between US and Japanese technology shares, led us to double our weighting in
Japan, with highly favorable results. In Europe, our emphasis has rightly been
on the UK, where our portfolio has performed exceptionally well. On the other
hand, we have maintained a modest position in the Pacific markets."
Sector Performance
"For much of the year, we positioned your Fund to take advantage of the
extremely strong growth in the components market, where supply has struggled to
keep up with demand. Component suppliers and manufacturers of related production
equipment have enjoyed strong revenue growth and outstanding earnings expansion.
More recently, we increased our exposure to the networking market where the
combination of increasing global penetration and the explosive growth of
Internet usage is being reflected in an acceleration of revenue growth. We have
maintained a massively underweighted position in telecommunications carriers,
reflecting our bearish view on the secular outlook for these companies, and we
cut back our weighting in the mobile communications equipment suppliers during
the late summer."
Looking Ahead
"We believe that the next 12 months will continue to support our fundamental
thesis that the global technology market remains in the early stages of a major
secular expansion. International demand for technology is accelerating and will
counterbalance any slowdown in the rate of growth in the US. Corporate earnings
growth for the general industrial sector is slowing and, in doing so, is
highlighting the exceptional growth potential of the technology sector. The
sector should continue to outperform on the back of strong relative earnings and
increasing attention from international investors."
2
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SELIGMAN
HENDERSON
GLOBAL
TECHNOLOGY FUND
Percentage of
Investments by
Country as of
October 31, 1995
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United States 55.4%
Japan 16.9
United Kingdom 9.4
Israel 3.1
Italy 2.0
Taiwan 2.0
Canada 1.8
Netherlands 1.3
Sweden 1.2
Denmark 0.9
Germany 0.9
Hong Kong 0.9
France 0.8
Singapore 0.8
South Korea 0.8
Austria 0.7
Norway 0.7
Finland 0.3
Brazil 0.1
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Total 100.0%
Major Portfolio
Holdings at October 31, 1995
Security Value
- -----------------------------------
Cypress Semiconductor $10,575,000
Lam Research 10,348,750
Novellus Systems 9,625,000
Tencor Instruments 9,405,000
KLA Instruments 8,600,000
Intel 8,392,500
Tower Semiconductor 7,783,750
Integrated Device
Technology 7,625,000
ESS Technology 7,527,656
Synopsys 7,450,000
Performance Comparison Chart and Table
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Technology Fund, Class A and D shares, with and without the
maximum initial sales charge of 4.75% or the 1% contingent deferred sales load
("CDSL") as applicable, since inception on May 23, 1994, through October 31,
1995, to a $10,000 hypothetical investment made in the Lipper Global Fund
Average (Lipper Average) and the Morgan Stanley Capital International World
Index (MSCI World Index) for the same period. It is important to keep in mind
that the index and average exclude the effects of any fees or sales charges.
[GRAPH]
The table below shows the average annual total returns for the one-year and
since-inception periods through October 31, 1995, for Seligman Henderson Global
Technology Fund Class A shares, with and without the maximum initial sales
charge of 4.75%, for the Lipper Average, and for the MSCI World Index. Also
included in the table are the average annual total returns for the one-year and
since-inception periods through October 31, 1995, for Seligman Henderson Global
Technology Fund Class D shares, with and without the effect of the 1% CDSL
imposed on shares redeemed within one year of purchase, the Lipper Average, and
the MSCI World Index.
Average Annual Total Returns
Since
One Inception
Year 5/23/94
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Seligman Henderson Global
Technology Fund
Class A with sales charge 49.79% 47.78%
Class A without sales charge 57.31 52.91
Lipper Average 5.43 7.02*
MSCI World Index 10.03 10.65*
Seligman Henderson Global
Technology Fund
Class D with CDSL 54.95% n/a
Class D without CDSL 55.95 51.61%
Lipper Average 5.43 7.02*
MSCI World Index 10.03 10.65*
* From 5/31/94.
Largest Portfolio Changes* During the Six Months Ended October 31
Shares
--------------------------
Holdings
Additions 10/31/95
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Cypress Semiconductor 230,000 300,000
Information Storage Device 350,000 350,000
Integrated Device Technology 400,000 400,000
KLA Instruments 200,000 200,000
Lam Research 130,000 170,000
Micron Technology 100,000 100,000
Novellus Systems 140,000 140,000
3 Com 120,000 120,000
Teltrend 107,000 107,000
Zilog 200,000 200,000
Shares
--------------------------
Holdings
Reductions 10/31/95
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Advanced Micro Devices 50,000 --
Altron 70,000 --
CBT Group ADRs 40,000 --
Cognex 55,000 --
DSC Communications 60,000 --
Electroglas 40,000 --
Electronics for Imaging 40,000 --
Exar 55,000 --
FSI International 58,000(1) --
Motorola 24,000 --
* 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 29,000 shares received as a result of a 2-for-1 stock split.
3
<PAGE>
SELIGMAN
HENDERSON
GLOBAL
SMALLER
COMPANIES FUND
Interview with
Iain C. Clark and
Arsen Mrakovcic,
Portfolio Managers
[Photo of International Team]
International Team:
From Left: Heather Manners,
Andrew Stack, William Garnett,
Stephen Peak. Missing from photo:
Iain Clark (Portfolio Manager)
[Photo of U.S. Team]
US Team:
From Left: Gus Scacco,
Carlene Palia, Shanean Austin,
Bruce Zirman,
(seated) Arsen Mrakovcic
(Portfolio Manager), Paul Wick
Economic Factors Affecting
Seligman Henderson Global Smaller Companies Fund
"Generally, the economic background in the past 12 months has had a rather mixed
effect on smaller companies worldwide. In Japan, smaller companies performed
poorly as the economy continued to suffer from the strong Yen. European smaller
companies performed reasonably well in the early part of the year. However, with
more recent evidence of slowing economies and fears over what 1996 will bring,
smaller companies have begun to underperform larger companies. By contrast, in
the US, economic factors have had little impact on smaller companies, which have
been boosted by the strength of the technology sector."
Your Managers' Investment Strategy
"In the past 12 months, your Fund's weighting in the US has increased, due
largely to the significant outperformance of US positions that we have held in
the portfolio. Recently, however, we have directed most of the new cash into
international markets, where we feel there are better opportunities. However,
given the continued strong performance of the US, this weighting remains quite
high.
"In addition, our weightings in the UK and Continental Europe have also risen.
In Continental Europe, we have continued to focus on France and Sweden, where we
see the most dynamic smaller companies. The strength or weakness of currencies,
however, has affected smaller companies in each country in contrasting ways. For
example, the strong French Franc has hurt smaller companies in France. By
contrast, the weak Swedish Krona has been a major benefit to export-related
smaller companies in Sweden.
"In Japan, the weighting dropped from 17% to 14%, in part reflecting the poor
performance of Japanese smaller companies. Overall, the US market provided the
strongest performance and we will continue to maintain it as our largest country
weighting."
Looking Ahead
"Outside the US, smaller companies have generally suffered in recent months as
economic growth around the world has slowed. Our economic forecasts suggest that
economic growth should improve during 1996, and this should provide a reasonably
benign backdrop for smaller companies. We see particularly attractive value in
Continental Europe; however, the area with the most potential is Japan -provided
its economy strengthens next year. We believe this will be the case and,
therefore, we are likely to increase our Japanese weighting steadily over the
next few months. Overall, smaller companies continue to provide an abundance of
exciting investment opportunities and we believe the background for investing
should be very positive."
4
<PAGE>
SELIGMAN
HENDERSON
GLOBAL SMALLER
COMPANIES FUND
Percentage of
Investments by
Country as of
October 31, 1995
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United States 36.8%
Japan 14.4
United Kingdom 13.8
Sweden 6.6
France 4.4
Germany 3.7
Switzerland 3.0
Finland 2.2
Indonesia 1.6
Italy 1.6
Netherlands 1.4
Singapore 1.3
Australia 1.2
Hong Kong 1.2
Austria 1.1
Canada 0.8
Denmark 0.8
Norway 0.8
Belgium 0.7
India 0.6
Malaysia 0.6
Thailand 0.4
Argentina 0.3
Spain 0.3
Brazil 0.2
Mexico 0.2
- ------------------------------------
Total 100.0%
Major Portfolio
Holdings at October 31, 1995
Security Value
- ------------------------------------
Electronics for Imaging $3,723,750
SunGard Data Systems 3,345,000
BMC Industries 3,090,000
Hummingbird
Communications 2,580,000
SITEL 2,275,000
Credence Systems 2,250,000
Dimac 2,207,562
Synopsys 2,160,500
Nu-Kote Holdings
(Class A) 2,056,250
Nokian Tyres 2,034,665
Performance Comparison Chart and Table
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Smaller Companies Fund Class A shares, with and without the
maximum initial sales charge of 4.75%, since the commencement of investment
operations through October 31, 1995, to a $10,000 hypothetical investment made
in the Lipper Global Small Company Fund Average (Lipper Average) and the Morgan
Stanley Capital International World Index (MSCI World Index) for the same
period. The performance of Seligman Henderson Global Smaller Companies Fund
Class D shares is not shown in the chart, but is included in the table below. It
is important to keep in mind that the index and average exclude the effects of
any fees or sales charges.
[Graph]
The table below shows the average annual total returns for the one-year and
since-commencement-of-investment-operations periods through October 31, 1995,
for Seligman Henderson Global Smaller Companies Fund Class A shares, with and
without the maximum initial sales charge of 4.75%, for the Lipper Average, and
for the MSCI World Index. Also included in the table are the average annual
total returns for the one-year and since-inception periods through October 31,
1995, for Seligman Henderson Global Smaller Companies Fund Class D shares, with
and without the effect of the 1% CDSL imposed on shares redeemed within one year
of purchase, the Lipper Average, and the MSCI World Index.
Average Annual Total Returns
One Since
Year 9/9/92*
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Seligman Henderson Global
Smaller Companies Fund
Class A with sales charge 14.44% 23.20%
Class A without sales charge 20.10 25.14
Lipper Average 7.31 15.09+
MSCI World Index 10.03 12.83+
Since
One Inception
Year 5/3/93
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Seligman Henderson Global
Smaller Companies Fund
Class D with CDSL 18.11% n/a
Class D without CDSL 19.11 22.51%
Lipper Average 7.31 12.75++
MSCI World Index 10.03 11.08++
* Commencement of investment operations.
+ From 8/31/92.
++ From 4/30/93.
Largest Portfolio Changes# During the Six Months Ended October 31
Shares
---------------------------
Holdings
Additions 10/31/95
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Applied Extrusion
Technologies 100,000 100,000
Bau Holdings 41,400 41,400
Hummingbird
Communications 60,000 60,000
Nokian Tyres 200,890 200,890
Plettac 6,630 6,630
SITEL 100,000 100,000
Stayer Group 609,900 609,900
SunGard Data Systems 30,000 90,000(1)
Sylea 19,320 19,320
Synopsys 58,000 58,000
Shares
---------------------------
Holdings
Reductions 10/31/95
- --------------------------------------------------------------------------------
Altera 36,000 --
Cognex 60,000 --
DeVry 25,000 --
Exar 60,000 --
FSI International 63,000(2) --
General Nutrition Companies 37,000 --
Mattson Technology 38,000 --
Nautica Enterprises 35,000 --
PRI Automation 30,000 25,000
Speedway Motorsports 60,000 --
# 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 30,000 shares received as a result of a 2-for-1 stock split.
(2) Includes 25,000 shares received as a result of a 2-for-1 stock split.
5
<PAGE>
SELIGMAN
HENDERSON
INTERNATIONAL
FUND
Interview with
Iain C. Clark,
Portfolio Manager
[Photo of International Team]
International Team
From Left: Tim Stevenson,
James Robinson,
Iain Clark (Portfolio Manager),
Peter Basset, David Thornton
Economic Factors Affecting
Seligman Henderson International Fund
"Overall, economic factors have played a relatively modest role in the direction
of international stock markets. Economies have generally been slowing steadily
in the more mature countries of the world, although there are some signs of
overheating in Asia. The consistent decline in inflation almost everywhere has
been a very positive feature, with rates of inflation invariably coming in lower
than consensus estimates. This factor has helped bond markets, and long-bond
yields have declined virtually everywhere, providing a positive backdrop for
international equity investing."
Your Manager's Investment Strategy
"In the past 12 months, we made a number of changes to your Fund's country
weightings. The weighting in Japan decreased from 34% a year ago to around 29%
currently. Most of the decline took place in the third quarter of 1995. It
should be noted that at the end of 1994 we hedged approximately one-third of the
assets tied to the Yen. However, in early July of this year we increased our
hedged position to 50%. Having initially hedged somewhat early, this increase
proved timely and helped to protect these assets as the Yen weakened sharply
during the third quarter of 1995.
"On the other hand, we increased the UK weighting from 13% to more than 19%.
Most of the increase was made in February of this year and proved successful as
the UK market has performed quite well in 1995. We also increased our overall
weighting in Continental Europe, with the principal additions to France and
Sweden. European stock markets did not perform particularly well in local
currency terms, but most currencies rose sharply against the US Dollar, thus
providing reasonable US Dollar returns."
Looking Ahead
"The key economic question going forward is whether the current slowdown in
global growth is just temporary or whether it presages a move towards recession.
We support the former view, as we see modest growth in consumer spending next
year helping to keep economies moving along -- although not at a particularly
rapid pace. This scenario should also be reasonably favorable for inflation, and
there still appear to be very few significant inflationary pressures on a global
basis. With this background in mind, we continue to favor financial assets. In
the short term, interest rates are likely to fall further in the US and Europe,
and long-bond yields should remain relatively stable. Provided there is some
economic growth next year, corporate earnings should continue to improve,
leading to a positive stock market background. We do not anticipate any major
changes to our strategy, although we will be looking to invest your Fund's small
amount of cash into Continental Europe and Japan, where we still see reasonable
value."
6
<PAGE>
SELIGMAN
HENDERSON
INTERNATIONAL
FUND
Percentage of
Investments by
Country as of
October 31, 1995
- ------------------------------------
Japan 28.7%
United Kingdom 19.2
France 8.7
Switzerland 5.8
Germany 4.4
Netherlands 3.9
Singapore 3.1
Australia 3.0
Hong Kong 3.0
Sweden 2.7
Spain 2.3
Norway 2.1
Thailand 1.9
India 1.8
Malaysia 1.6
Indonesia 1.3
South Korea 1.3
Denmark 1.2
Italy 1.2
Taiwan 1.1
Mexico 1.0
Argentina 0.7
- ------------------------------------
Total 100.0%
Major Portfolio
Holdings at October 31, 1995
Security Value
- ------------------------------------
East Japan Railway $2,227,376
Toshiba 2,227,317
Nippon Telegraph
& Telephone 2,152,230
Yamaha 1,915,112
Pioneer Electronic 1,875,361
Reuters Holdings 1,489,286
Granada Group 1,433,945
BTR 1,372,275
Tesco 1,339,218
B.A.T. Industries 1,240,581
Performance Comparison Chart and Table
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson International Fund Class A shares, with and without the maximum
initial sales charge of 4.75%, since the commencement of investment operations
through October 31, 1995, to a $10,000 hypothetical investment made in the
Morgan Stanley Capital International Europe-Australia-Far East Index (EAFE
Index) for the same period. The performance of Seligman Henderson International
Fund Class D shares is not shown in the chart, but is included in the table
below. It is important to keep in mind that the index excludes the effects of
any fees or sales charges.
[Graph]
The table below shows the average annual total returns for the one-year and
since-commencement-of-investment-operations periods through October 31, 1995,
for Seligman Henderson International Fund Class A shares, with and without the
maximum initial sales charge of 4.75%, and for the EAFE Index. Also included in
the table are the average annual total returns for the one-year and
since-inception periods through October 31, 1995, for Seligman Henderson
International Fund Class D shares, with and without the effect of the 1% CDSL
imposed on shares redeemed within one year of purchase, and for the EAFE Index.
Average Annual Total Returns*
One Since
Year 4/7/92**
- --------------------------------------------------------------------------------
Seligman Henderson
International Fund
Class A with sales charge -5.92% 10.28%
Class A without sales charge -1.24 11.79
EAFE Index -0.07 11.92+
Since
One Inception
Year 9/21/93
- --------------------------------------------------------------------------------
Seligman Henderson
International Fund
Class D with CDSL -3.02% n/a
Class D without CDSL -2.08 6.83%
EAFE Index -0.07 6.37++
* No adjustment was made to the performance of Seligman Henderson
International Fund Class A shares for periods prior to September 21, 1993,
the commencement date for the annual Administration, Shareholder Services
and Distribution Plan fee of up to 0.25% of average daily net assets.
** Commencement of investment operations.
+ From 3/31/92.
++ From 9/30/93.
Largest Portfolio Changes# During the Past Six Months Ended October 31
Shares
---------------------------
Holdings
Additions 10/31/95
- --------------------------------------------------------------------------------
Caradon 222,000 222,000
Cie Generale des Eaux 10,752 10,752
Deutsche Bank 16,695 18,295
Mitsubishi Materials 233,000 233,000
Mitsui Marine & Fire 166,000 166,000
Mitsui O.S.K. Lines 407,000 407,000
Norsk Hydro 21,181 21,181
Royal Bank of Scotland 148,000 148,000
Stora Kopparbergs 60,507 73,507
Sumitomo Metal Industries 425,000 425,000
Shares
---------------------------
Holdings
Reductions 10/31/95
- --------------------------------------------------------------------------------
Daiwa House Industry 87,000 --
Fuji Bank 65,000 --
Legal & General 125,000 --
L'Oreal 3,200 --
Mitsubishi Rayon 656,000 --
Nippon Paper 210,000 --
Nippon Telegraph
& Telephone 88 262
Toshiba 108,000 307,000
TPI Polene 117,500 --
Yamaha 110,000 120,000
# Largest portfolio changes from the previous period to the current period
are based on cost of purchases and proceeds from sales of securities.
7
<PAGE>
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS October 31, 1995
Shares Value
------ -----
COMMON STOCKS--87.5%
BROADCASTING--0.4%
Australis Media* (Australia)
Satellite broadcasting 300,000 $ 223,881
Bell Cablemedia ADRs* (UK)
Cable television operator 170,000 2,528,750
------------
2,752,631
------------
COMPUTER AND BUSINESS
SERVICES--2.5%
Admiral (UK)
Computer software and services 140,000 1,735,285
Computer Learning Centers* (US)
Information technology and
computer-related education
and training 90,000 900,000
Logica (UK)
Computer services 725,000 5,531,794
McDonnell Information Systems (UK)
Developer and supplier of computer
solutions to niche markets 125,000 148,406
NTT Data Communications Systems (Japan)
Value-added network operator 110 2,757,135
Unilog (France)
Computer consultants 17,241 1,168,510
Unipalm Group* (UK)
Distributor of networking products 344,500 2,770,345
------------
15,011,475
------------
COMPUTER HARDWARE/
PERIPHERALS--8.1%
Acorn Computer* (UK)
Leading UK supplier to the
educational computer market 850,000 1,964,503
Astec (UK)
Designer and manufacturer of
power conversion products and
electronic components 1,500,000 2,659,440
Creative Technology* (Singapore)
Sound and video multimedia
products 125,000 1,468,750
Dell Computer* (US)
Developer and manufacturer of
IBM-compatible personal
computers 120,000 5,587,500
In Focus Systems* (US)
Manufacturer of liquid crystal
display products 125,000 4,109,375
Komag* (US)
Manufacturer of thin film
magnetic media for hard-disk drives 80,000 4,565,000
Microcom* (US)
Manufacturer of modems 200,000 4,362,500
Mylex* (US)
Peripheral interface circuit boards 200,000 3,737,500
Psion (UK)
Manufacturer of hand-held
computers 333,000 3,189,191
Read-Rite* (US)
Manufacturer of thin film
magnetic read-write heads
for hard-disk drives 110,000 $3,843,125
Seagate Technology* (US)
Global hard-disk drive supplier 160,000 7,160,000
3DO* (US)
Developer of video game
software and game platforms 600,000 6,525,000
------------
49,171,884
------------
COMPUTER SOFTWARE--6.7%
Coda Group (UK)
Developer and supplier of financial
accounting software 100,000 330,847
Corel Systems (Canada)
Developer and manufacturer of
graphics software 200,000 3,425,000
Data Systems & Software* (US)
Real-time systems integrator
and consultants 100,000 912,500
Hummingbird Communications
(Canada)
X-Windows networking software 140,000 6,020,000
Learmonth & Burchett Management
Systems* (UK)
Supplier of computer aided
software engineering tools and
consultancy services 600,000 3,552,252
Microsoft* (US)
Microcomputer software 60,000 6,003,750
Misys (UK)
Provider of software products and
services for the financial services
industry 363,000 3,442,028
Network General* (US)
Local area network software 50,000 2,068,750
Parametric Technology* (US)
Developer of mechanical
design software 100,000 6,681,250
Synopsys* (US)
Integrated circuit design software 200,000 7,450,000
Touchstone Software (US)
Personal computer utility software 160,000 1,150,000
------------
41,036,377
------------
CONTRACT MANUFACTURING--0.6%
Hana Microelectronics (Thailand)
Contract manufacturer 70,000 247,566
Rainford Group* (UK)
Contract manufacturer specializing
in the cellular base station market 127,500 787,147
Venture Manufacturing (Singapore)
Contract manufacturer 941,000 2,875,925
------------
3,910,638
------------
- --------
See footnotes on page 19.
8
<PAGE>
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------ -----
DISTRIBUTORS--0.7%
Electrocomponents (UK)
Distributor of electronic
components 600,000 $ 3,077,352
Eurodis Electron (UK)
Supplier of electronic components,
and computer products and systems 400,000 1,494,352
------------
4,571,704
------------
ELECTRONICS--11.1%
Eurotherm (UK)
Manufacturer of electronic
equipment 100,000 892,812
Hirose Electronics (Japan)
Manufacturer of specialist
connectors 68,250 4,363,563
Hitachi (Japan)
Manufacturer of
diversified electronics 346,000 3,557,057
Kyocera (Japan)
Supplier of semiconductor
packaging; capacitors;
and cellular components 65,000 5,333,138
Murata Manufacturing (Japan)
Manufacturer of ceramic
capacitors and filters 160,000 5,623,929
Nichicon (Japan)
Manufacturer of capacitors 74,000 999,853
Philips Electronics (Netherlands)
Consumer and industrial
electronics 98,000 3,784,742
Saes Getters Di Risp (Italy)
Market leader in vacuum maintenance
technology and gas purification 100,000 848,123
Saes Getters Spa (Italy)
Market leader in vacuum maintenance
technology and gas purification 55,000 1,050,416
Samsung Electronics GDSs+
(South Korea)
Manufacturer of consumer
electronics and semiconductors 58,000 3,842,500
Samsung Electronics GDRs*
(South Korea)
Manufacturer of consumer
electronics and semiconductors 578 66,256
Samsung Electronics ADS*+
(South Korea)
Manufacturer of consumer
electronics and semiconductors 31 3,554
Samsung Electronics GDSs
(South Korea)
Manufacturer of consumer
electronics and semiconductors 160 18,341
Samsung Electronics GDRs*+
(South Korea)
Manufacturer of consumer
electronics and semiconductors 3,562 227,078
SDL* (US)
Electro-optical integrated circuits 155,000 4,030,000
Secom (Japan)
Manufacturer of electronic
instrumentation 70,000 4,564,547
Speedfam International* (US)
Chemical mechanical polishing
equipment 250,000 4,000,000
TDK (Japan)
Leader in magnetic tapes and
heads for disk drives 100,000 5,159,837
Toshiba (Japan)
Diversified manufacturer of
consumer and industrial
electronics 440,000 3,192,246
Unitech (UK)
Manufacturer of power supplies 726,000 6,068,082
Varitronix International (Hong Kong)
Manufacturer of LCDs 1,070,000 2,041,377
Vicor* (US)
Manufacturer of modular
power converters 220,000 4,427,500
Yageo GDRs*+ (Taiwan)
Manufacturer of passive
components 216,520 2,381,720
Yamaichi Electronics (Japan)
Manufacturer of integrated
circuits' sockets 29,000 880,208
------------
67,356,879
------------
INDUSTRIAL GOODS AND
SERVICES--1.4%
Celsius Industries (Series B) (Sweden)
Systems integrator 71,000 1,343,460
Fuji Machine Manufacturing (Japan)
SMT equipment 110,000 4,146,473
Siliconware Precision Industries GDRs*
(Taiwan)
I.C. packaging 178,000 2,815,070
------------
8,305,003
------------
MEDICAL PRODUCTS AND
TECHNOLOGY--0.8%
Fresenius (Germany)
Dialysis equipment 6,000 4,793,523
Towa Pharmaceutical (Japan)
Supplier of generic pharmaceuticals 3,000 140,990
------------
4,934,513
------------
NETWORKING/COMMUNICATIONS INFRASTRUCTURE--9.6%
Alantec* (US)
Intelligent switching hubs 145,000 5,129,375
Aspect Telecommunications* (US)
Automated call distribution
equipment 160,000 5,540,000
CIDCO* (US)
Telephone call identification devices 180,000 5,298,750
- --------
See footnotes on page 19.
9
<PAGE>
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------ -----
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE (continued)
Colonial Data Technologies (US)
Manufacturer of telephone call
identifiers 150,000 $ 2,062,500
Cray Electronics Holdings (UK)
Data communications; networking
and software systems 1,550,000 1,079,606
ECI Telecommunications (Israel)
Electronic telecommunications
systems 150,000 2,859,375
L.M. Ericsson (Series B) (Sweden)
Manufacturer of telecom-
munications equipment 236,700 5,031,994
Glenayre Technologies* (US)
Manufacturer of paging
infrastructure equipment 70,000 4,523,750
Lannet Data Communications*
(Israel)
Intelligent switching hubs 200,000 5,787,500
Nera ADRs* (Norway)
Designer and manufacturer of
wireless telecommunications
equipment and systems 100,000 3,512,500
P-Com* (US)
Wireless base station systems 270,000 4,725,000
Tekelec* (US)
Telecommunications test
equipment 125,000 1,843,750
Telemetrix (UK)
Networking components 1,150,000 2,402,994
Teltrend* (US)
T-1 transmission equipment 107,000 3,196,625
3 Com* (US)
Supplier of adapter cards, hubs,
and routers for local area
computer networks 120,000 5,632,500
------------
58,626,219
------------
PRINTING AND PUBLISHING--0.3%
Toyo Ink Manufacturing (Japan)
Digital printing 340,000 1,577,912
------------
SEMICONDUCTORS--22.1%
Adaptec* (US)
Peripheral interconnect systems 120,000 5,355,000
Advanced Semiconductors GDSs*+
(Taiwan)
I.C. packaging 224,500 2,848,905
Altera* (US)
Manufacturer of integrated
circuits 110,000 6,661,875
Atmel* (US)
High-performance semiconductor
manufacturing 140,000 4,383,750
Aval Data (Japan)
Manufacturer of computer peripherals 120,000 2,537,818
Austria Mikro Systeme (Austria)
Manufacturer of semiconductors 21,200 3,922,561
Cypress Semiconductor* (US)
High-speed memory circuits 300,000 10,575,000
DSP Communications* (US)
Digital signal processors 150,000 5,456,250
ESS Technology* (US)
Audio integrated circuits 252,500 7,527,656
Information Storage Devices* (US)
Audio recording circuits 350,000 7,437,500
Integrated Device Technology* (US)
Manufacturer of memory circuits
and microprocessors 400,000 7,625,000
Intel (US)
Microprocessors and FLASH
memory circuits 120,000 8,392,500
Linear Technology (US)
Producer of high-performance
analog semiconductors 100,000 4,387,500
LSI Logic* (US)
Manufacturer of complex
logic circuits 100,000 4,712,500
Microchip Technology* (US)
Field programmable
microcontrollers 150,000 5,943,750
Micron Technology* (US)
Memory circuits 100,000 7,062,500
Mimasu Semiconductor (Japan)
Manufacturer of silicon wafers 150,000 3,965,340
NEC (Japan)
Manufacturer of diversified electronics 413,000 5,458,951
Quality Semiconductor* (US)
High-speed logic circuits 275,000 2,303,125
Rohm (Japan)
Producer of custom linear
integrated circuits 82,000 4,985,754
SGS Thomson Microelectric ADRs*
(France)
Manufacturer of semiconductor
integrated circuits and
discrete devices 75,000 3,393,750
Tokyo Seimitsu (Japan)
Manufacturer of wafer probes 20,000 391,639
Tower Semiconductor* (Israel)
Semiconductor foundry services 260,000 7,783,750
Xilinx* (US)
Field programmable gate arrays 100,000 4,606,250
Zilog* (US)
Manufacturer of microprocessors
and microcontrollers 200,000 7,062,500
------------
134,781,124
------------
SEMICONDUCTOR CAPITAL
EQUIPMENT--18.1%
Advantest (Japan)
Manufacturer of semiconductor
testing equipment 105,000 5,962,696
Ando Electric* (Japan)
Electronic measuring instruments
and systems 140,000 2,741,470
- --------
See footnotes on page 19.
10
<PAGE>
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT (continued)
Applied Materials* (US)
World's largest supplier of
semiconductor fabrication
equipment 140,000 $ 7,026,250
ASM Lithography Holdings*
(Netherlands)
Manufacturer of steppers 66,800 3,289,900
ASM Pacific Technology
(Hong Kong)
Manufacturer of semiconductor
production equipment 2,754,000 2,600,365
Brooks Automation* (US)
Systems and modules for
semiconductor manufacturing 220,000 4,015,000
Credence Systems* (US)
Automated semiconductor test
equipment 170,000 6,375,000
ETEC Systems* (US)
Photomask manufacturing systems 400,000 4,350,000
Fusion Systems* (US)
Photoresist strip systems 40,000 1,105,000
KLA Instruments* (US)
Wafer inspection devices 200,000 8,600,000
Lam Research* (US)
Manufacturer of plasma-
etching equipment 170,000 10,348,750
Nikon (Japan)
Electronic instrumentation 405,000 5,789,396
Novellus Systems* (US)
Chemical vapor disposition
equipment 140,000 9,625,000
PRI Automation* (US)
Semiconductor factory automation
equipment 50,000 1,868,750
Semitool* (US)
Wafer cleaning equipment 235,000 3,760,000
Sumitomo Sitix (Japan)
Supplier of silicon wafers 45,000 806,286
Tencor Instruments* (US)
Wafer inspection devices 220,000 9,405,000
Teradyne* (US)
Semiconductor test equipment 160,000 5,340,000
Tokyo Electron (Japan)
Largest Japanese producer of
semiconductor production
equipment 140,000 6,086,063
Ultratech Stepper* (US)
Photolithography systems 160,000 6,400,000
Veeco Instruments* (US)
Ion beam etching and surface
measurement systems 200,000 4,750,000
------------
110,244,926
------------
Shares or
Prin. Amt.
----------
TELECOMMUNICATIONS--3.5%
DDI (Japan)
Long distance and cellular
operator 578 shs. 4,691,457
Pakistan Telecom GDRs* (Pakistan)
Telecommunications services 2,800 266,000
Telebras ADRs (Brazil)
Telecommunications services 8,000 322,316
Telecom Italia (Italy)
Cellular operator 1,960,000 2,979,865
Telecom Italia Mobile* (Italy)
Cellular operator 3,650,000 6,133,972
Tele Danmark (Series B) (Denmark)
Telecommunications services 90,250 4,709,127
Vodafone (UK)
Cellular operator 500,000 2,065,815
------------
21,168,552
------------
MISCELLANEOUS--1.6%
Glory Kogyo (Japan)
Manufacturer and major exporter
of currency-handling machines 140,000 4,920,938
Isotron (UK)
Irradiation services 400,000 1,924,928
Linx Printing Technology (UK)
Manufacturer of ink jet printers 845,000 1,351,011
Traffic Master* (UK)
Supplier of traffic
information services 400,000 1,336,052
------------
9,532,929
------------
TOTAL COMMON STOCKS
(Cost $487,450,810) 532,982,766
------------
CONVERTIBLE BONDS--0.5%
(Cost $3,562,130)
SEMICONDUCTORS--0.5%
United Micro Electronics
(Taiwan) 1 1/4%, 6/8/2004
Manufacturer of semiconductors $2,120,000 2,907,050
------------
PREFERRED STOCKS--0.3%
(Cost $2,381,646)
COMMUNICATIONS
INFRASTRUCTURE--0.3%
Nokia (Finland)
Manufacturer of cellular equipment 33,500 shs. 1,917,418
------------
TAL INVESTMENTS--88.3%
(Cost $493,394,586) 537,807,234
OTHER ASSETS LESS
LIABILITIES--11.7% 71,546,927
------------
NET ASSETS--100.0% $609,354,161
============
- --------
See footnotes on page 19.
11
<PAGE>
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------- -----
COMMON STOCKS--92.8%
ADVERTISING--3.2%
Asatsu (Japan)
Advertising agency 27,000 $ 933,177
DIMAC (US)
Business services; direct marketing 84,500 2,207,562
Heritage Media (Class A)* (US)
Broadcasting and in-store advertising 55,000 1,526,250
Katz Media Group* (US)
Advertising broker 70,000 1,260,000
Princedale Group (UK)
Marketing services company 369,165 157,785
------------
6,084,774
------------
AUTOMOTIVE PARTS
MANUFACTURING--4.3%
Forsheda (Sweden)
Manufacturer of automobile
components 63,396 1,156,565
Kiekert* (Germany)
Manufacturer of automobile
locking systems 26,000 1,634,059
Linamar* (Canada)
Auto parts supplier to all major
US car manufacturers 24,000 375,699
Montupet (France)
Manufacturer of automobile components 5,487 726,911
Nippon Seiki (Japan)
Manufacturer of automobile
components 70,000 774,465
Nokian Tyres* (Finland)
Manufacturer of tires 200,890 2,034,665
Sylea (France)
Manufacturer of automobile
components 19,320 1,455,785
------------
8,158,149
------------
BUILDING MATERIALS--1.5%
Mulia Industrindo (Indonesia)
Manufacturer of ceramic tiles and glass 345,000 1,017,834
Polypipe (UK)
Manufacturer of plastic piping and
molded plastic products 640,000 1,742,567
------------
2,760,401
------------
BUSINESS SERVICES--4.7%
BISYS Group* (US)
Data processing service for banks 65,000 1,811,875
International Business Communications
Holdings (UK)
Organizer of conferences and
publisher 335,000 1,585,612
Nu-Kote Holdings (Class A)* (US)
Manufacturer of products for
printing equipment 100,000 2,056,250
SunGard Data Systems* (US)
Computer services aimed at
disaster recovery 120,000 3,345,000
------------
8,798,737
------------
CAPITAL GOODS--2.3%
Fusion Systems* (US)
Manufacturer of ultraviolet
curing systems 70,000 1,933,750
Stayer Group* (Italy)
Power tools 609,900 1,475,178
Tsubakimoto Precision (Japan)
Manufacturer of ball bearings 67,000 852,793
------------
4,261,721
------------
CHEMICALS--2.9%
Applied Extrusion Technologies* (US)
Polypropylene film products 100,000 1,543,750
Chemical Company of Malaysia
(Malaysia)
Producer of industrial chemicals
and pharmaceuticals 177,000 355,394
Dalloz* (France)
Manufacturer of polycarbonate-
injected plastic for use in sunglasses
and protective eyewear 5,860 1,319,874
Hoganas (Series B) (Sweden)
Producer of metal powders 45,000 1,214,474
Toshiba Chemical (Japan)
Producer of synthetic resin molded
products and insulating materials 37,000 306,115
Toyo Ink Manufacturing (Japan)
Ink manufacturer 158,000 733,265
------------
5,472,872
------------
COMPUTER SOFTWARE--1.4%
Dendrite International* (US)
Sales management and software 85,000 1,487,500
Imnet Systems* (US)
Electronic information and document
management systems 35,000 896,875
Inference (Class A)* (US)
Marketing; customer service; and
financial and insurance software 17,000 206,125
------------
2,590,500
------------
CONSTRUCTION AND
PROPERTY--5.2%
Asas Dunia Berhad (Malaysia)
Property developer 39,000 122,835
Ashstead Group (UK)
Equipment hire for the construction
sector 180,000 1,205,296
Bau Holdings (Austria)
Construction/civil engineering 41,400 1,920,242
Bukit Sembawang Estates (Singapore)
Property developer 36,000 769,155
Danske Traelastkompagni (Denmark)
Timber supply company 18,700 1,335,225
Ex-Lands (UK)
UK and European property
company 166,615 63,300
Higashi Nihon House (Japan)
House builder 57,000 764,576
- ----------
See footnotes on page 19.
12
<PAGE>
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------- -----
CONSTRUCTION AND
PROPERTY (continued)
Mitsui Home (Japan)
House builder 52,000 $ 738,239
New Asia Realty (Hong Kong)
Holding company with interests in
properties and real estate 149,000 255,358
Ruberoid (UK)
Bitumous waterproofing systems 572,246 1,358,798
Tilbury Douglas (UK)
Small contractor in the UK 180,000 1,202,447
------------
9,735,471
------------
CONSUMER GOODS
AND SERVICES--6.2%
Apcoa Parking* (Germany)
Automobile parking lots 16,360 1,103,718
Canandaigua Wine (Class A)* (US)
Wine, imported beer, and
distilled spirits 36,000 1,728,000
Central Parking* (US)
Owner and operator of domestic and
international parking facilities 35,500 878,625
Fujitsu Business Systems (Japan)
Distributor of electronic and
communications equipment 32,000 808,342
Le Creuset (France)
Manufacturer of quality cookware 40,000 112,077
Marieberg Tidnings (Series A) (Sweden)
Newspaper publisher and
distributor 45,600 1,086,287
Rentsch, Walter Holdings (Switzerland)
Swiss distributor of Canon, Inc.
products 5,340 911,937
St. John Knits (US)
Apparel manufacturer 40,000 1,915,000
SITEL* (US)
Telemarketer 100,000 2,275,000
Sorini (Indonesia)
Manufacturer of Sorbitol and
Maltodexin, etc 150,000 858,653
------------
11,677,639
------------
DRUGS AND
HEALTH CARE--1.9%
Darya Varia Lab (Indonesia)
Manufacturer of generic
pharmaceuticals 59,500 99,887
F.H. Faulding (Australia)
Pharmaceutical wholesaler
and producer 149,149 656,475
Horizon Mental Health
Management (US)
Psychiatric care provider 80,000 1,250,000
Nacional de Drogas (Series L)*
(Mexico)
Pharmaceutical wholesaler 100,000 318,471
Protein Design Labs* (US)
Biotechnology company that
develops antibodies and other
proteins to treat diseases 70,000 1,163,750
------------
3,488,583
------------
ELECTRICAL DISTRIBUTION--1.3%
Rexel (France)
European electrical distributor 5,155 833,869
Trifast (UK)
Manufacturer and distributor of
fasteners for the electronics
industry 279,000 1,563,466
------------
2,397,335
------------
ELECTRICAL UTILITIES--1.0%
California Energy* (US)
Developer of geothermal
energy power 70,000 1,268,750
Central Costanera ADSs+ (Argentina)
Electrical power generation
company 20,000 555,000
------------
1,823,750
------------
ELECTRONICS--7.4%
BMC Industries (US)
Television aperture masks 80,000 3,090,000
Electro Scientific Industries* (US)
Laser trimming systems, memory
repair systems, and test and
production equipment 60,000 1,875,000
Enplas (Japan)
Producer of plastics for engineering 34,000 739,022
Foster Electric (Japan)
Speaker manufacturer with
worldwide production 122,000 597,249
Horiba Instruments (Japan)
Manufacturer of instruments
and analyzers 66,000 743,134
ISA International (UK)
Supplier of computer
consumables 611,003 1,421,810
Lem Holdings (Switzerland)
Manufacturer of electrical components 3,960 1,505,915
Microtest* (US)
Network diagnostic tools and
enhancements 100,000 1,512,500
Otra NV (Netherlands)
Holding company for various
technical product wholesale
companies 8,185 1,684,156
Techniche* (Australia)
Industrial holding company whose
main investment is in
telecommunications equipment 270,000 742,234
------------
13,911,020
------------
- ----------
See footnotes on page 19.
13
<PAGE>
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------- -----
FINANCIAL SERVICES--5.2%
Finnveden (Series B)* (Sweden)
Industrial conglomerate 161,500 $ 1,643,611
Ichiyoshi Securities (Japan)
Kansai-based securities business 141,000 722,015
Jayhawk Acceptance* (US)
Consumer finance company 70,000 853,125
Manhattan Card (Hong Kong)
Operator of credit card business 1,800,000 768,306
Protector Forsikring* (Norway)
Provider of non-life insurance
policies 44,800 1,046,628
Roosevelt Financial Group (US)
Largest St. Louis-based savings
institution 60,000 960,000
T. Rowe Price (US)
Investment advisor to the
T. Rowe Price mutual funds and
institutional money managers 30,000 1,485,000
Sirrom Capital (US)
Business specialty lender 67,000 1,193,438
World Acceptance* (US)
Small-loan consumer financier 90,000 1,170,000
------------
9,842,123
------------
INDUSTRIAL GOODS
AND SERVICES--1.3%
Angpanneforeningen (Class B) (Sweden)
Engineering consultancy 110,500 1,865,963
Finning (Canada)
Lessor of construction equipment 40,000 596,347
------------
2,462,310
------------
MANUFACTURING--12.8%
AGCO (US)
Farm equipment 33,000 1,476,750
Andayani Megah (Indonesia)
Manufacturer of tire cord 1,000,000 853,148
Asahi Diamond Industries (Japan)
Manufacturer of diamond-tipped tools 64,000 820,874
Danto (Japan)
Manufacturer of wall and
floor tiles 57,000 652,959
Danto Rights* (Japan)
Manufacturer of wall and
floor tiles 11,400 125,011
David Brown Group (UK)
Diversified engineering company
that manufactures transmission
equipment and pumps 387,331 1,373,445
De Rigo Spa ADRs (Italy)
Manufacturer of sunglasses 25,000 515,625
Dominick Hunter (UK)
Producer of gas filters 299,600 1,512,911
Futuris (Australia)
Mini-conglomerate with interests
in building materials, auto
components, and financial services 785,442 729,699
Glory Kogyo (Japan)
Manufacturer and major exporter
of currency-handling machines 22,000 773,290
Hokushin (Japan)
Producer of fiber board 86,000 757,821
Industrie Natuzzi ADRs* (Italy)
Manufacturer of leather furniture 21,240 849,600
Iro* (Sweden)
Manufacturer of textile machinery 150,000 1,831,888
Kalmar Industries (Sweden)
Manufacturer of heavy-lift trucks 47,500 773,464
Namura Shipbuilding (Japan)
Shipbuilder 147,000 820,385
Nichicon (Japan)
Manufacturer of electrical equipment 61,000 824,203
Oakley* (US)
Manufacturer of sunglasses 34,250 1,181,625
Opta Food Ingredients* (US)
Manufacturer of food additives 110,000 1,650,000
Plettac (Germany)
Manufacturer of scaffolding,
light-weight construction sheds,
and related products 6,630 1,516,074
Singamas Container (Hong Kong)
Dry-goods freight manufacturer 1,300,000 218,592
Singamas Container Warrants*
(Hong Kong)
Dry-goods freight manufacturer 260,000 6,689
Sodick (Japan)
Manufacturer of electro dischargers 82,000 778,773
Stoves* (UK)
Manufacturer of ovens 267,500 901,954
Tsudakoma (Japan)
Manufacturer of air-jet looms 135,000 767,954
Valmet Oy (Finland)
Manufacturer of paper and pulp
machinery 30,055 835,343
Wellington Holdings (UK)
Producer of sealing systems and
rubber compounds 200,000 785,168
Yue Yuen Industrial Holdings
(Hong Kong)
Manufacturer of athletic footwear 3,100,000 811,959
------------
24,145,204
------------
MEDIA--2.3%
Audiofina* (Luxembourg)
Radio and television broadcasting 31 16,590
Capital Radio (UK)
Commercial radio station in
London 200,000 1,440,530
Hodder Headline (UK)
Book publisher and distributor 100,000 417,912
Sistem Televisyen of Malaysia (Malaysia)
Media conglomerate operating the
TV3 channel 164,000 516,535
- ----------
See footnotes on page 19.
14
<PAGE>
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------- -----
MEDIA (continued)
Trinity International Holdings (UK)
Publisher of regional newspapers
in the UK, US, and Canada 100,000 $ 519,224
Trinity International Holdings Rights* (UK)
Publisher of regional newspapers
in the UK, US, and Canada 100,000 204,207
United Video Satellite Group
(Class A)* (US)
Satellite-delivered program services 45,000 1,192,500
------------
4,307,498
------------
MEDICAL PRODUCTS AND
TECHNOLOGY--1.0%
Arjo (Sweden)
Manufacturer of patient handling
equipment 33,000 512,476
Hitachi Medical (Japan)
Manufacturer of medical
equipment 61,000 776,423
Summit Medical Systems* (US)
Clinical outcomes database software 39,000 633,750
------------
1,922,649
------------
METALS--1.2%
Nakayama Steel Works (Japan)
Small blast furnace company
producing mainly for the
housing industry 147,000 748,421
Sanyo Special Steel (Japan)
Steel manufacturer 203,000 755,275
Sumitomo Sitix (Japan)
Producer of silicon wafers 46,000 824,203
------------
2,327,899
------------
OIL SERVICES--0.2%
EnServ* (Canada)
Diversified oil field services
company 60,000 480,805
------------
PAPER AND PRINTING--2.1%
Bobst AG (Switzerland)
Manufacturer of machinery for the
paper and package industries 659 997,782
Munskjo (Sweden)
Specialty paper producer 100,000 723,709
Rengo (Japan)
Manufacturer of paper board 115,000 799,432
Wace Group (UK)
Provider of pre-press and printing
services 400,000 1,526,012
------------
4,046,935
------------
RESOURCES--0.5%
Nittetsu Mining (Japan)
Open cast coal miner 112,000 970,480
------------
Shares or
Prin. Amt.
----------
RESTAURANTS--2.2%
Aiya (Japan)
Restaurant chain 68,000 758,995
Kentucky Fried Chicken (Japan)
Fast food restaurant 55,000 726,979
Pizza Express (UK)
Operator of restaurant chain 600,000 1,833,114
Sagami Chain (Japan)
Noodle restaurant chain 44,000 784,060
------------
4,103,148
------------
RETAILING--5.6%
Adelsten (Class B) (Norway)
Clothing retailers 2,775 278,480
Clinton Cards (UK)
Retailer of greeting cards 319,673 521,224
Courts (Singapore)
Retailer of household furniture 560,000 879,519
D'Ieteren Trading (Belgium)
Automobile rental 14,765 1,172,493
Fotolabo Club (Switzerland)
Film processor 3,130 1,030,475
Frost Group (UK)
Gas station chain 373,333 1,317,899
Hornbach Baumarkt (Germany)
A large home improvement and
garden center retailer 22,090 1,105,951
Jardine International Motor Holdings
(Hong Kong)
Holding company for Jardine
Matheson Group 20,000 23,153
Jean Pascale (Germany)
Clothing retailer 36,525 1,089,408
Jean Pascale Rights* (Germany)
Clothing retailer 36,525 32,163
Lojas Arapua GDRs*+ (Brazil)
Specialist electrical retailers 50,000 468,500
Prodega (Switzerland)
Food retailer 2,700 903,169
Tsutsumi Jewelry (Japan)
Manufacturer and retailer of jewelry 17,000 840,554
Xebio (Japan)
Retailer of outdoor clothing 22,000 818,525
------------
10,481,513
------------
TECHNOLOGY--7.8%
ADE* (US)
Manufacturer of metrology and
inspection systems for the
semiconductor industry 87,000 1,283,250
Asyst Technologies* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 43,000 1,832,875
Credence Systems* (US)
Manufacturer of semiconductor
test equipment 60,000 2,250,000
- ----------
See footnotes on page 19.
15
<PAGE>
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------- -----
TECHNOLOGY (continued)
Electronics for Imaging* (US)
Color copier servers 45,000 $ 3,723,750
Getronics (Netherlands)
Computer systems' integration
house and consultant 17,726 845,057
PRI Automation* (US)
Semiconductor factory
automation systems 25,000 934,375
Sanmina* (US)
Manufacturer of electronic
circuit boards 30,000 1,627,500
Synopsys* (US)
Integrated circuit design software 58,000 2,160,500
------------
14,657,307
------------
TELECOMMUNICATIONS--2.6%
Arch Communications Group* (US)
Nationwide paging services 55,000shs. 1,498,750
Hummingbird Communications* (US)
X-Windows networking software 60,000 2,580,000
Loxley (Thailand)
Supplier of computer and
telecommunications equipment 40,000 804,292
------------
4,883,042
------------
TEXTILES AND APPAREL--1.4%
Claremont Garments (UK)
Producer of women's clothing
for a major UK retailer 245,000 1,144,113
Lassila & Tikanoja (Finland)
Industrial conglomerate 28,200 1,082,687
Renown* (Japan)
Clothing manufacturer 150,000 409,752
------------
2,636,552
------------
TRANSPORTATION--1.9%
Comfort (Singapore)
Taxi operator 755,000 630,279
Iino Kaiun* (Japan)
Shipping company 131,000 646,439
Rubis (France)
Chemical storage and distribution
company 33,110 813,547
Stena Lines (Sweden)
Ferry operator 150,000 764,418
Tonami Transport (Japan)
Regional transport company 117,000 670,142
------------
3,524,825
------------
VETERINARY PRODUCTS--0.4%
Virbac (France)
Manufacturer of animal drugs
and veterinary products 4,972 661,739
------------
MISCELLANEOUS--1.0%
Technip* (France)
Engineering contractors 28,590 1,861,587
------------
TOTAL COMMON STOCKS
(Cost $154,684,111) 174,476,568
------------
CONVERTIBLE BONDS--0.9%
CONSTRUCTION AND PROPERTY--0.1%
Ex-Lands (UK)
7 1/2%, due 1/1/2020
UK and European property
company 233,261# 235,891
------------
MANUFACTURING--0.5%
Gujarat Ambuja Cement (India)
3 1/2%, due 6/30/1999
Cement producer $ 750,000 1,039,688
------------
PUBLISHING--0.3%
Grupo Anaya (Spain)
7%, due 3/18/1998
Publishing company 72,000,000++ 501,557
------------
TOTAL CONVERTIBLE BONDS
(Cost $1,897,322) 1,777,136
------------
TOTAL INVESTMENTS--93.7%
(Cost $156,581,433) 176,253,704
OTHER ASSETS LESS
LIABILITIES--6.3% 11,773,223
------------
NET ASSETS--100.0% $188,026,927
============
- ----------
See footnotes on page 19.
16
<PAGE>
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS October 31, 1995
Shares Value
------ -----
COMMON STOCKS--92.9%
BANKING--10.1%
Banco de Santander (Spain)
Worldwide banking operation 22,496 $ 980,812
Deutsche Bank (Germany)
Worldwide banking operation 18,295 825,006
Grupo Financiero Banamex
Accival (Series B) (Mexico)
One of the largest financial
companies in Mexico involved
in banking and stockbroking 100,000 172,682
Malayan Banking (Malaysia)
Provider of banking services 77,000 621,457
Royal Bank of Scotland (UK)
Provider of banking services 148,000 1,201,877
Siam Commercial Bank (Thailand)
Provider of banking services 74,000 864,534
Societe Generale (France)
Provider of full banking and
financial services 9,748 1,117,752
Sumitomo Trust and Banking
(Japan)
Trust bank 107,000 1,236,207
United Overseas Bank (Singapore)
Comprehensive banking
operation, with substantial
interests in Malaysia 123,660 1,084,814
------------
8,105,141
------------
BUILDING MATERIALS--2.6%
LaFarge Coppee (France)
Global manufacturer of building
materials, including cement
and concrete 12,291 815,659
Siam Cement (Thailand)
Cement manufacturer 9,800 534,298
Uralita* (Spain)
Manufacturer of building materials 71,482 720,561
------------
2,070,518
------------
CHEMICALS--3.7%
Akzo Nobel (Netherlands)
Producer of chemicals, fibers,
paints, hospital supplies, and
diagnostics 7,443 846,791
Bayer (Germany)
Producer of specialty chemicals,
pharmaceuticals, and plastics 3,835 1,013,117
Norsk Hydro (Norway)
Natural resources processor 21,181 843,431
Toyo Ink Manufacturing (Japan)
Ink manufacturer 57,000 264,532
------------
2,967,871
------------
CONSUMER PRODUCTS--5.8%
CSK (Japan)
Information services company 34,000 965,389
Groupe Danone (France)
Food processing 5,048 807,258
KAO (Japan)
Manufacturer of cosmetics and
personal care products 55,000 667,744
Nestle (Switzerland)
Allied companies engaged
in food processing,
pharmaceuticals, and cosmetics 978 1,024,489
Unilever (UK)
A major producer of consumer
goods and personal care products 61,000 1,186,759
------------
4,651,639
------------
ELECTRONICS--7.5%
Farnell Electronics (UK)
Manufacturer and distributor of
electronic and electrical equipment 92,000 975,761
Pioneer Electronic (Japan)
Manufacturer of audio equipment,
including laser disks 122,000 1,875,361
Samsung Electronics GDSs+ (South Korea)
Manufacturer of consumer
electronics and semiconductors 14,000 927,500
Samsung Electronics GDRs*+
(South Korea)
Manufacturer of consumer
electronics and semiconductors 148 16,965
Toshiba (Japan)
Diversified manufacturer of
consumer and industrial
electronics 307,000 2,227,317
------------
6,022,904
------------
FINANCIAL SERVICES--1.4%
Nomura Securities (Japan)
Japan's largest securities firm 60,000 1,098,546
------------
HEALTH AND HOUSEHOLD--1.4%
Roche Holdings (Switzerland)
European pharmaceutical
company and chemicals producer 157 1,140,185
------------
INDUSTRIAL GOODS AND
SERVICES--4.3%
BBC Brown Boveri (Switzerland)
Manufacturer of heavy equipment
for electric power generation and
distribution 893 1,035,282
BTR (UK)
Global company that manufactures
a broad range of industrial goods 258,000 1,372,275
Cie Generale des Eaux (France)
Water purification and distribution;
energy production 10,752 1,000,611
------------
3,408,168
------------
- ----------
See footnotes on page 19.
17
<PAGE>
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------ -----
INSURANCE--6.5%
Assicurazione Generali (Italy)
Provider of life and non-life
insurance services and
investment and related services 40,375 $ 942,316
AXA (France)
Provider of financial services
and insurance 17,637 980,836
Internationale Nederlanden Group
(Netherlands)
Worldwide underwriter of
reinsurance; provider of
financing and consumer credit 18,618 1,109,183
Mitsui Marine & Fire (Japan)
Provider of non-life insurance 166,000 999,559
Zurich Versicherung (Switzerland)
Provider of insurance services 4,126 1,180,414
------------
5,212,308
------------
LEISURE AND
HOTELS--1.8%
Granada Group (UK)
Television group with additional
leisure interests 134,000 1,433,945
------------
MANUFACTURING--7.1%
Caradon (UK)
Supplier of building products 222,000 695,823
Delta Group (UK)
Manufacturer of cable, electrical
equipment, and building products 82,000 546,483
FKI Babcock (UK)
Electrical engineering company 354,500 914,713
Gadjah Tunggal (Indonesia)
Manufacturer of tires 1,563,000 985,908
Hocheng Group GDRs (Taiwan)
Manufacturer of bathroom
fixtures 33,533 301,797
Tokyo Steel Manufacturing (Japan)
Leading producer of H beams 19,000 353,454
Yamaha (Japan)
Manufacturer of musical instruments
and audio equipment 120,000 1,915,112
------------
5,713,290
------------
MEDIA--6.2%
News Corp. (Australia)
Global printer and publisher of
professional trade journals
and magazines 128,620 648,390
Nippon Television Network (Japan)
Japanese television broadcasters 3,030 723,866
Reed Elsevier (Netherlands)
Global printer and publisher of
professional trade journals and
magazines 79,333 1,024,624
Reuters Holdings (UK)
Holding company for the Reuters
news organization 160,000 1,489,286
WPP Group (UK)
Owner of major global
advertising agencies 443,000 1,079,954
------------
4,966,120
------------
METALS--4.3%
Hindalco GDRs (India)
A large aluminum producer 20,000 637,400
Mitsubishi Materials (Japan)
Non-ferrous smelter
and cement producer 233,000 1,053,958
Sumitomo Metal Industries (Japan)
Blast furnace and steel producer 425,000 1,152,641
Sumitomo Sitix (Japan)
Titanium producer 32,000 573,359
------------
3,417,358
------------
PAPER AND
PACKAGING--1.1%
Stora Kopparbergs (Sweden)
Manufacturer of forestry products 73,507 892,169
------------
RESOURCES--5.0%
British Petroleum (UK)
Oil producer, refiner, and
distributor 143,000 1,053,748
Broken Hill Proprietary (Australia)
The largest resources company in
Australia with interests in steel,
oil, and minerals 81,100 1,098,051
ELF Aquitaine (France)
Oil and gas exploration;
manufacturer of chemical compounds 12,512 853,126
MIM Holdings (Australia)
International minerals and metals
exploration company 373,000 502,750
YPF Sociedad Anonima ADRs
(Argentina)
Oil and gas producer 30,000 513,750
------------
4,021,425
------------
RESTAURANTS--0.5%
Denny's (Japan)
Restaurant operator 14,000 420,816
------------
RETAILING--4.6%
Aoyama Trading (Japan)
Suit and clothing retailer 13,600 367,513
Carrefour Supermarche (France)
Supermarket operator in Europe,
the Americas, and Taiwan 1,750 1,029,117
Joshin Denki (Japan)
Electrical appliance retailer 28,000 342,684
- ----------
See footnotes on page 19.
18
<PAGE>
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (continued) October 31, 1995
Shares Value
------ -----
RETAILING (continued)
Karstadt (Germany)
Department store chain 1,460 $ 632,461
Tesco (UK)
Supermarket chain 282,000 1,339,218
------------
3,710,993
------------
SHIPBUILDING--2.5%
Jurong Shipyard (Singapore)
Leading ship repair company
in Singapore 186,000 1,236,930
Kvaerner Industries (Norway)
Engineering company specializing
in shipbuilding 19,082 759,848
------------
1,996,778
------------
TELECOMMUNICATIONS--7.4%
Grupo Carso ADRs*+ (Mexico)
Holding company with a substantial
stake in Telmex and a number
of industrial subsidiaries 45,000 607,275
Hong Kong Telecommunications
(Hong Kong)
Provider of telecommunications
services 590,000 1,030,228
L.M. Ericsson (Series B) (Sweden)
Manufacturer of telecommunications
equipment 55,135 1,172,112
Nippon Telegraph & Telephone (Japan)
Telecommunications company 262 2,152,230
Tele Danmark (Series B) (Denmark)
Provider of telecommunications
services 17,948 936,503
------------
5,898,348
------------
TOBACCO--1.6%
B.A.T. Industries (UK)
Manufacturer of tobacco and a
financial services company 151,000 1,240,581
------------
TRANSPORTATION--7.5%
East Japan Railway (Japan)
Provider of railway services 471 2,227,376
Lufthansa (Germany)
Operator of international airline
services 6,313 865,255
Shares or
Prin. Amt.
----------
Mitsui O.S.K. Lines (Japan)
Shipping company 407,000shs. 1,067,959
Perusahaan Otomobil Nasional
(Malaysia)
Manufacturer of automobiles 171,000 612,638
Swire Pacific (Hong Kong)
Conglomerate with major
interests in property
development and aviation 160,000 1,200,316
------------
5,973,544
------------
TOTAL COMMON STOCKS
(Cost $71,218,340) 74,362,647
------------
CONVERTIBLE BONDS--1.5%
ELECTRONICS--0.6%
Teco Electronics & Machinery
(Taiwan) 2 3/4%, due 4/15/2004
Manufacturer of household
appliances and electrical
equipment $ 680,000 533,800
------------
BUILDING MATERIALS--0.9%
Gujarat Ambuja Cement (India)
3 1/2%, due 6/30/1999
Cement manufacturer 500,000 693,125
------------
TOTAL CONVERTIBLE BONDS
(Cost $1,311,325) 1,226,925
------------
TOTAL INVESTMENTS--94.4%
(Cost $72,529,665) 75,589,572
OTHER ASSETS LESS
LIABILITIES--5.6% 4,446,673
------------
NET ASSETS--100.0% $ 80,036,245
============
- ----------
* Non-income producing security.
# Principal amount reported in British pounds.
++ Principal amount reported in Spanish pesetas.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
19
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES October 31, 1995
<TABLE>
<CAPTION>
Global Global Smaller
Technology Companies International
Fund Fund Fund
------------- ------------- -------------
<S> <C> <C> <C>
Assets:
Investments, at value (see portfolios of investments):
Common stocks ........................................................ $ 532,982,766 $ 174,476,568 $ 74,362,647
Convertible bonds .................................................... 2,907,050 1,777,136 1,226,925
Preferred stocks ..................................................... 1,917,418 -- --
------------- ------------- -------------
Total investments ...................................................... 537,807,234 176,253,704 75,589,572
Cash ................................................................... 61,003,890 13,071,176 3,001,296
Receivable for Capital Stock sold ...................................... 10,585,213 1,879,126 176,113
Receivable for securities sold ......................................... 8,914,541 1,311,102 --
Net unrealized appreciation on forward currency
contracts ............................................................. 2,881,737 674,538 1,477,117
Receivable for dividends and interest .................................. 313,169 364,535 419,041
Expenses prepaid to shareholder service agent .......................... 279,572 68,273 27,781
Receivable from associated companies ................................... -- -- 14,532
Deferred organizational expenses ....................................... -- 11,660 9,791
Other .................................................................. 32,736 16,680 8,163
------------- ------------- -------------
Total Assets ........................................................... 621,818,092 193,650,794 80,723,406
------------- ------------- -------------
Liabilities:
Payable for securities purchased ....................................... 10,167,190 4,908,046 190,303
Payable for Capital Stock repurchased .................................. 1,106,658 309,510 289,245
Accrued expenses, taxes, and other ..................................... 1,190,083 406,311 207,613
------------- ------------- -------------
Total Liabilities ...................................................... 12,463,931 5,623,867 687,161
------------- ------------- -------------
Net Assets ............................................................. $ 609,354,161 $ 188,026,927 $ 80,036,245
============= ============= =============
Composition of Net Assets:
Capital Stock, at par:
Class A .............................................................. $ 34,318 $ 7,372 $ 2,918
Class D .............................................................. 12,543 6,274 1,903
Additional paid-in capital ............................................. 523,539,713 154,200,386 72,096,814
Undistributed/accumulated net investment income (loss) ................. 670,912 (5,461) (8,862)
Undistributed net realized gain on investments ......................... 37,811,640 13,465,499 3,397,526
Net unrealized appreciation of investments ............................. 50,667,195 17,223,721 2,541,652
Net unrealized appreciation (depreciation) on translation of
assets and liabilities denominated in foreign currencies and
forward currency contracts ........................................... (3,382,160) 3,129,136 2,004,294
------------- ------------- -------------
Net Assets ............................................................. $ 609,354,161 $ 188,026,927 $ 80,036,245
============= ============= =============
Net Assets:
Class A .............................................................. $ 447,732,498 $ 102,479,209 $ 48,763,413
Class D .............................................................. $ 161,621,663 $ 85,547,718 $ 31,272,832
Shares of Capital Stock outstanding:
Class A .............................................................. 34,318,111 7,372,309 2,918,455
Class D .............................................................. 12,543,400 6,274,218 1,902,875
Net Asset Value per share:
Class A .............................................................. $ 13.05 $ 13.90 $ 16.71
Class D .............................................................. $ 12.89 $ 13.63 $ 16.43
</TABLE>
- ----------
See notes to financial statements.
20
<PAGE>
STATEMENT OF OPERATIONS For the year ended October 31, 1995
<TABLE>
<CAPTION>
Global Global Smaller
Technology Companies International
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Investment income:
Interest ........................................................................... $ 1,418,344 $ 689,708 $ 267,958
Dividends .......................................................................... 771,103 1,187,223 1,421,497
------------ ------------ ------------
Total investment income* ........................................................... 2,189,447 1,876,931 1,689,455
------------ ------------ ------------
Expenses:
Management fees .................................................................... 2,127,260 1,148,074 796,849
Shareholder account services ....................................................... 896,048 362,883 192,478
Distribution and service fees ...................................................... 890,672 664,376 309,988
Registration ....................................................................... 248,293 63,704 41,282
Custody and related services ....................................................... 150,071 129,971 120,500
Auditing and legal fees ............................................................ 62,029 59,965 58,848
Shareholder reports and communications ............................................. 59,718 62,694 54,871
Directors' fees and expenses ....................................................... 10,410 9,714 9,448
Amortization of organizational expenses ............................................ -- 6,083 7,344
Miscellaneous ...................................................................... 4,412 6,274 6,167
------------ ------------ ------------
Total expenses ..................................................................... 4,448,913 2,513,738 1,597,775
------------ ------------ ------------
Net investment income (loss) ....................................................... (2,259,466) (636,807) 91,680
------------ ------------ ------------
Net realized and unrealized gain (loss) on investments and foreign currency
transactions:
Net realized gain on investments ................................................... 37,630,540 13,624,396 107,795
Net realized gain from foreign currency transactions ............................... 3,115,205 612,519 2,665,639
Net change in unrealized appreciation of investments ............................... 45,696,354 9,286,138 (1,749,894)
Net change in unrealized appreciation on translation of
assets and liabilities denominated in foreign currencies
and forward currency contracts ................................................... (4,035,567) 122,958 (2,193,540)
------------ ------------ ------------
Net gain (loss) on investments and foreign currency
transactions ....................................................................... 82,406,532 23,646,011 (1,170,000)
------------ ------------ ------------
Increase (decrease) in net assets from operations .................................. $ 80,147,066 $ 23,009,204 $ (1,078,320)
============ ============ ============
- ----------
*Net of foreign taxes withheld as follows: ......................................... $ 107,223 $ 168,158 $ 168,947
</TABLE>
See notes to financial statements.
21
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Global Global Smaller
Technology Fund Companies Fund International Fund
----------------------------- ----------------------------- ----------------------------
Year ended October 31 Year ended October 31
Year ended 5/23/94* to ----------------------------- ----------------------------
10/31/95 10/31/94 1995 1994 1995 1994
------------- ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ..... $ (2,259,466) $ (67,662) $ (636,807) $ (678,464) $ 91,680 $ 75,496
Net realized gain on
investments .................... 37,630,540 704,929 13,624,396 3,266,517 107,795 3,522,706
Net realized gain (loss) from
foreign currency transactions .. 3,115,205 (50,053) 612,519 (182,742) 2,665,639 24,244
Net change in unrealized
appreciation/depreciation
of investments ................. 45,696,354 4,970,841 9,286,138 4,948,657 (1,749,894) (1,230,974)
Net change in unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts ..... (4,035,567) 653,407 122,958 3,205,881 (2,193,540) 4,659,861
------------- ------------ ------------- ------------ ------------ ------------
Increase (decrease) in net
assets from operations ......... 80,147,066 6,211,462 23,009,204 10,559,849 (1,078,320) 7,051,333
------------- ------------ ------------- ------------ ------------ ------------
Distributions to shareholders:
Net investment income--
Class A ........................ -- -- -- -- -- (25,793)
Net realized gain on investments:
Class A ........................ (506,847) -- (1,358,384) (158,731) (2,535,690) (762,068)
Class D ........................ (84,094) -- (1,134,039) (90,380) (858,276) (83,469)
------------- ------------ ------------- ------------ ------------ ------------
Decrease in net assets from
distributions .................. (590,941) -- (2,492,423) (249,111) (3,393,966) (871,330)
------------- ------------ ------------- ------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares:
Class A ........................ 360,662,688 45,695,152 49,499,681 20,287,082 14,368,837 25,380,280
Class D ........................ 141,486,971 5,533,969 40,513,236 25,897,256 15,310,748 18,420,000
Shares issued in payment of
dividends--Class A ............. -- -- -- -- -- 966
Exchanged from associated Funds:
Class A ........................ 27,074,750 1,899,467 15,768,458 3,539,187 9,722,723 2,407,044
Class D ........................ 19,697,655 456,736 5,514,387 947,336 2,556,052 909,398
Shares issued in payment of
gain distributions:
Class A ........................ 470,951 -- 1,265,938 146,652 2,386,633 722,715
Class D ........................ 81,693 -- 1,065,232 84,031 815,096 70,003
------------- ------------ ------------- ------------ ------------ ------------
Total ............................ 549,474,708 53,585,324 113,626,932 50,901,544 45,160,089 47,910,406
------------- ------------ ------------- ------------ ------------ ------------
Cost of shares repurchased:
Class A ........................ (33,194,965) (2,482,871) (8,956,953) (3,603,074) (26,669,397) (3,283,415)
Class D ........................ (6,863,194) (54,697) (4,830,211) (2,704,805) (2,728,512) (620,963)
Exchanged into associated
Funds:
Class A ........................ (19,854,654) (36,732) (12,541,162) (940,600) (10,430,952) (585,482)
Class D ........................ (16,982,122) (4,223) (4,374,915) (424,467) (3,647,337) (1,558,697)
------------- ------------ ------------- ------------ ------------ ------------
Total ............................ (76,894,935) (2,578,523) (30,703,241) (7,672,946) (43,476,198) (6,048,557)
------------- ------------ ------------- ------------ ------------ ------------
Increase in net assets
from capital share
transactions ................... 472,579,773 51,006,801 82,923,691 43,228,598 1,683,891 41,861,849
------------- ------------ ------------- ------------ ------------ ------------
Increase (decrease) in
net assets ..................... 552,135,898 57,218,263 103,440,472 53,539,336 (2,788,395) 48,041,852
Net Assets:
Beginning of period .............. 57,218,263 -- 84,586,455 31,047,119 82,824,640 34,782,788
------------- ------------ ------------- ------------ ------------ ------------
End of period .................... $ 609,354,161 $ 57,218,263 $ 188,026,927 $ 84,586,455 $ 80,036,245 $ 82,824,640
============= ============ ============= ============ ============ ============
</TABLE>
- ----------
* Commencement of operations.
See notes to financial statements.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
1. Seligman Henderson Global Fund Series, Inc. (the "Fund") consists of three
separate Series: the "Global Technology Fund," the "Global Smaller Companies
Fund" (formerly the "Global Emerging Companies Fund"), and the "International
Fund." Each Series of the Fund offers two classes of shares. The Global
Technology Fund had no operations prior to its commencement on May 23, 1994,
other than those relating to organizational matters. All shares existing prior
to the commencement of Class D shares (May 3, 1993, in the case of the Global
Smaller Companies Fund, and September 21, 1993, in the case of the International
Fund) were classified as Class A shares.
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 up
to 0.75% and a service fee of up to 0.25% on an annual basis, 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
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
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
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
Global Smaller Companies Fund and International 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 value of shares 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.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended October 31, 1995, were as follows:
Series Purchases Sales
------ --------- -----
Global Technology Fund $586,190,564 $169,767,088
Global Smaller
Companies Fund 144,395,789 66,564,364
International Fund 50,612,871 47,012,608
At October 31, 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
------ ------------ ------------
Global Technology Fund $65,971,531 $21,558,883
Global Smaller
Companies Fund 29,512,841 9,840,570
International Fund 8,013,311 4,953,404
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 year ended October 31, 1995, the Manager,
at its discretion, waived a portion of its fees for the International Fund equal
to $29,129.
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:
Distributor Dealer
Series Concessions Commissions
------ ------------ -----------
Global Technology Fund $1,452,931 $13,763,930
Global Smaller
Companies Fund 149,478 1,581,277
International Fund 24,712 340,375
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 year ended October 31, 1995, fees incurred by the Global
Technology Fund, the Global Smaller Companies Fund and the International Fund,
aggregated $388,913, $137,362 and $63,874 respectively, or 0.24%, 0.22%, and
0.11%, 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 year ended October 31, 1995,
fees incurred by the Global Technology Fund, the Global Smaller Companies Fund
and the International Fund, amounted to $501,759, $527,014, and $246,114,
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 year ended
October 31, 1995, such charges amounted to $47,859 for the Global Technology
24
<PAGE>
Fund, $20,784 for the Global Smaller Companies Fund, and $9,926 for the
International Fund.
Effective April 1, 1995, Seligman Services, Inc., an affiliate of Manager
became eligible to receive commissions from certain sales of Fund shares, as
well as distribution and service fees pursuant to the Plan. For the period ended
October 31, 1995, Seligman Services, Inc. received commissions from sales of the
Fund and distribution and service fees, pursuant to the Plan, as follows:
Distribution and
Series Commissions service fees
------ ----------- ------------
Global Technology Fund $240,079 $ 6,303
Global Smaller Companies Fund 16,474 4,833
International Fund 1,843 10,799
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost, for shareholder account services the following
amounts:
Series Amount
------ --------
Global Technology Fund $896,048
Global Smaller Companies Fund 362,883
International Fund 192,478
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 incurred for the legal services of Sullivan & Cromwell, a member of
which firm is a director of the Fund, were as follows:
Series Amount
------ -------
Global Technology Fund $14,200
Global Smaller Companies Fund 14,500
International Fund 13,800
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. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The annual cost of such
fees and interest is included in directors' fees and expenses, and the following
accumulated balances thereof at October 31, 1995, are included in other
liabilities:
Series Amount
------ ------
Global Technology Fund $2,506
Global Smaller Companies Fund 5,461
International Fund 8,862
5. Class-specific expenses charged to Class A and Class D for the year ended
October 31, 1995, which are included in the corresponding captions of the
Statements of Operations, were as follows:
Shareholder
Distribution reports and
Series and service fees Registration communications
------ ---------------- ------------ --------------
Global Technology Fund:
Class A $388,913 $ 45,115 $ 4,745
Class D 501,759 7,157 1,156
Global Smaller Companies Fund:
Class A 137,362 8,722 3,490
Class D 527,014 8,120 2,477
International Fund:
Class A 63,874 6,931 2,572
Class D 246,114 6,732 1,955
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
6. At October 31, 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>
Global Technology Fund: 11/1/95 $ 995,186 JPY(1) 101,250,276 $ (3,849)
11/2/95 2,020,730 GBP(2) 1,281,376 7,688
11/10/95 $18,879,459 JPY(1) 1,709,535,000 2,115,167
1/5/96 12,000,000 JPY(1) 1,166,184,000 457,852
1/5/96 17,000,000 JPY(1) 1,686,825,000 304,879
----------
$2,881,737
==========
Global Smaller Companies Fund:
11/1/95 139,605 JPY(1) 14,203,428 $ (540)
11/1/95 373,581 SEK(3) 2,480,203 366
11/2/95 166,813 GBP(2) 105,779 635
11/2/95 1,029,991 IDR(4) 2,336,019,605 (1,361)
11/2/95 10,533 ITL(5) 16,827,048 38
11/2/95 112,551 MYR(6) 286,274 155
11/2/95 650,168 SEK(3) 919,662 460
11/3/95 165,453 HKD(7) 1,279,234 9
11/3/95 188,880 ITL(5) 301,451,969 504
11/10/95 6,000,000 JPY(1) 543,090,000 674,272
----------
$ 674,538
==========
International Fund: 11/3/95 332,225 FRF(8) 1,627,670 $ (1,054)
11/3/95 86,774 ITL(5) 138,491,976 (232)
11/10/95 13,750,000 JPY(1) 1,244,581,250 1,545,206
11/10/95 1,250,000 JPY(1) 120,656,250 (66,803)
----------
$1,477,117
==========
</TABLE>
- ----------
(1) Japanese yen
(2) British pounds
(3) Swedish kronas
(4) Indonesian rupiahs
(5) Italian lira
(6) Malaysian ringgits
(7) Hong Kong dollars
(8) French francs
26
<PAGE>
7. The Fund has 2,000,000,000 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 October 31, 1995, the Board of Directors
had classified 500,000,000 shares each, for the Global Technology Fund, the
Global Smaller Companies Fund, and the International Fund, all at par value of
$.001 per share. In addition, 500,000,000 shares were allocated to Seligman
Henderson Global Growth Opportunities Fund, a new Series which commenced
operations on November 1, 1995. Transactions in shares of Capital Stock were as
follows:
<TABLE>
<CAPTION>
Global Global Smaller
Technology Fund Companies Fund International Fund
-------------------------- ---------------------------- --------------------------
Year ended Year ended
Year 5/23/94* October 31 October 31
ended to -------------------------- --------------------------
10/31/95 10/31/95 1995 1994 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .............................. 30,447,088 6,132,488 3,891,326 1,882,978 883,953 1,527,360
Class D .............................. 12,061,813 726,187 3,258,190 2,398,991 957,943 1,103,072
Shares issued in payment
of dividends--Class A ................ -- -- -- -- -- 545
Exchanged from associated Funds:
Class A .............................. 2,337,457 249,622 1,207,701 321,062 582,898 144,172
Class D .............................. 1,690,219 60,800 425,098 86,334 156,168 53,559
Shares issued in payment of gain
distributions:
Class A .............................. 59,388 -- 117,325 14,114 152,467 44,311
Class D .............................. 10,354 -- 99,928 8,119 52,587 4,297
----------- ----------- ----------- ----------- ----------- -----------
Total .................................. 46,606,319 7,169,097 8,999,568 4,711,598 2,786,016 2,877,316
----------- ----------- ----------- ----------- ----------- -----------
Shares repurchased:
Class A .............................. (2,851,418) (319,927) (732,207) (328,149) (1,626,181) (194,987)
Class D .............................. (578,504) (7,166) (398,296) (247,483) (172,007) (36,905)
Exchanged into associated Funds:
Class A .............................. (1,731,922) (4,665) (989,792) (87,401) (635,170) (34,565)
Class D .............................. (1,419,748) (555) (357,856) (39,069) (227,011) (92,115)
----------- ----------- ----------- ----------- ----------- -----------
Total .................................. (6,581,592) (332,313) (2,478,151) (702,102) (2,660,369) (358,572)
----------- ----------- ----------- ----------- ----------- -----------
Increase in shares ..................... 40,024,727 6,836,784 6,521,417 4,009,496 125,647 2,518,744
=========== =========== =========== =========== =========== ===========
</TABLE>
- ----------
* Commencement of operations.
27
<PAGE>
FINANCIAL HIGHLIGHTS
The Fund's financial highlights are presented below. 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 incurred 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.
Per Share Operating Performance:
<TABLE>
<CAPTION>
Net Realized
& Unrealized Increase Net
Net Asset Net Net Realized Gain (Loss) (Decrease) Increase
Value at Investment & Unrealized from Foreign from Distributions (Decrease)
Fiscal Year Beginning Income Gain (Loss) Currency Investment Dividends from Net Gain in Net
or Period of Period (Loss)*** on Investments Transactions Operations Paid Realized Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Global Technology Fund
Class A:
Year ended 10/31/95 $ 8.37 $(0.10) $4.90 $(0.05) $ 4.75 $ -- $(0.07) $4.68
5/23/94*-10/31/94 7.14 (0.01) 1.08 0.16 1.23 -- -- 1.23
Class D:
Year ended 10/31/95 8.34 (0.18) 4.85 (0.05) 4.62 -- (0.07) 4.55
5/23/94*-10/31/94 7.14 (0.04) 1.08 0.16 1.20 -- -- 1.20
Global Smaller
Companies Fund
Class A:
Year ended 10/31/95 11.93 (0.02) 2.24 0.08 2.30 -- (0.33) 1.97
Year ended 10/31/94 9.98 (0.08) 1.57 0.52 2.01 -- (0.06) 1.95
Year ended 10/31/93 7.15 (0.02) 3.07 (0.20) 2.85 (0.02) -- 2.83
9/9/92**-10/31/92 7.14 -- 0.02 (0.01) 0.01 -- -- 0.01
Class D:
Year ended 10/31/95 11.80 (0.12) 2.20 0.08 2.16 -- (0.33) 1.83
Year ended 10/31/94 9.94 (0.16) 1.57 0.51 1.92 -- (0.06) 1.86
5/3/93*-10/31/93 8.52 (0.05) 1.60 (0.13) 1.42 -- -- 1.42
International Fund
Class A:
Year ended 10/31/95 17.67 0.06 (0.42) 0.09 (0.27) -- (0.69) (0.96)
Year ended 10/31/94 15.98 0.04 0.91 1.08 2.03 (0.01) (0.33) 1.69
Year ended 10/31/93 11.89 0.04 4.25 (0.17) 4.12 (0.03) -- 4.09
4/7/92**-10/31/92 12.00 0.08 (0.23) 0.04 (0.11) -- -- (0.11)
Class D:
Year ended 10/31/95 17.53 (0.07) (0.43) 0.09 (0.41) -- (0.69) (1.10)
Year ended 10/31/94 15.96 (0.09) 0.91 1.08 1.90 -- (0.33) 1.57
9/21/93*-10/31/93 15.23 (0.03) 1.17 (0.41) 0.73 -- -- 0.73
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data***
----------------------------------------------------------
Net Investment
Net Asset Total Return Expenses to Income (Loss) Net Assets at
Fiscal Year Value at Based on Average to Average Portfolio End of Period
or Period End of Period Net Asset Value Net Assets Net Assets Turnover (000's omitted)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Technology Fund
Class A:
Year ended 10/31/95 $13.05 57.31% 1.91% (0.89)% 87.42% $ 447,732
5/23/94*-10/31/94 8.37 17.23 2.00+ (0.45)+ 29.20 50,719
Class D:
Year ended 10/31/95 12.89 55.95 2.66 (1.63) 87.42 161,622
5/23/94*-10/31/94 8.34 16.81 2.75+ (1.22)+ 29.20 6,499
Global Smaller
Companies Fund
Class A:
Year ended 10/31/95 13.90 20.10 1.83 (0.20) 63.05 102,479
Year ended 10/31/94 11.93 20.28 1.92 (0.77) 62.47 46,269
Year ended 10/31/93 9.98 39.86 1.98 (0.29) 60.03 20,703
9/9/92**-10/31/92 7.15 0.14 1.75+ 0.13+ -- 1,562
Class D:
Year ended 10/31/95 13.63 19.11 2.61 (0.97) 63.05 85,548
Year ended 10/31/94 11.80 19.45 2.70 (1.53) 62.47 38,317
5/3/93*-10/31/93 9.94 16.67 2.75+ (1.35)+ 60.03++ 10,344
International Fund
Class A:
Year ended 10/31/95 16.71 (1.24) 1.69 0.35 60.70 48,763
Year ended 10/31/94 17.67 12.85) 1.63 0.27 39.59 62,922
Year ended 10/31/93 15.98 34.78 1.75 0.27 46.17 33,134
4/7/92**-10/31/92 11.89 (0.92) 1.75+ 1.25+ 12.77 14,680
Class D:
Year ended 10/31/95 16.43 (2.08 2.50 (0.44) 60.70 31,273
Year ended 10/31/94 17.53 12.03 2.50 (0.53) 39.59 19,903
9/21/93*-10/31/93 15.96 4.79 2.50+ (1.86)+ 46.17++ 1,648
</TABLE>
Without Management Fee Waiver
and/or Expense Reimbursement***
-----------------------------------------------------
Ratio of
Ratio of Net Investment
Net Investment Expenses to Income (Loss)
Fiscal Year Income (Loss) Average to Average
or Period per Share Net Assets Net Assets
- --------------------------------------------------------------------------------
Global Technology Fund
Class A:
Year ended 10/31/95
5/23/94*-10/31/94 $(0.02) 2.18%+ (0.63)%+
Class D:
Year ended 10/31/95
5/23/94*-10/31/94 (0.06) 3.36+ (1.83)+
Global Smaller
Companies Fund
Class A:
Year ended 10/31/95
Year ended 10/31/94
Year ended 10/31/93 (0.18) 3.90 (2.21)
9/9/92**-10/31/92 (0.07) 12.28+ (10.44)+
Class D:
Year ended 10/31/95
Year ended 10/31/94
5/3/93*-10/31/93 (0.11) 4.25+ (2.85)+
International Fund
Class A:
Year ended 10/31/95
Year ended 10/31/94
Year ended 10/31/93 (0.04) 2.30 (0.28)
4/7/92**-10/31/92 -- 2.92+ 0.08+
Class D:
Year ended 10/31/95 (0.09) 2.62 (0.56)
Year ended 10/31/94 (0.11) 2.67 (0.70)
9/21/93*-10/31/93 (0.11) 8.49+ (7.84)+
- --------------
* Commencement of operations.
** Commencement of investment operations.
*** The Manager and Subadviser, at their discretion, waived a portion of their
fees, and in some cases, the Subadviser reimbursed certain expenses for the
periods presented.
+ Annualized.
++ For the year ended October 31, 1993.
See notes to financial statements.
29
<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 Global Technology Fund, the Global Smaller
Companies Fund and the International Fund Series of Seligman Henderson Global
Fund Series, Inc. as of October 31, 1995, the related statements of operations
for the year then ended and of changes in net assets (1) for the year ended
October 31, 1995 and for the period from May 23, 1994 (commencement of
operations) to October 31, 1994 for the Global Technology Fund and (2) for each
of the years in the two-year period then ended for the Global Smaller Companies
Fund and the International 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 October
31, 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 October 31, 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
December 1, 1995
- --------------------------------------------------------------------------------
30
<PAGE>
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin (2)
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, USLife Corporation
Alice S. Ilchman (3)
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Chairman, The Rockefeller Foundation
Frank A. McPherson (2)
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
Director, Commonwealth Aluminum Corporation
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, Law Firm
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)
President
Managing Director, J. & W. Seligman & Co. Incorporated
Chairman and Director, Seligman Data Corp.
- ----------
Member: (1) Executive Committee
(2) Audit Committee
(3) Director Nominating Committee
- --------------------------------------------------------------------------------
31
<PAGE>
EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Brian T. Zino
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
32
<PAGE>
SELIGMAN HENDERSON CO.
100 PARK AVENUE NEW YORK NEW YORK 10017
----------------------------------------------------------
NEW YORK LONDON TOKYO
This report is intended 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 sales
charges, management fees, and other costs. Please read the
prospectus carefully before investing or sending money.
EQSH2 10/95
