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SELIGMAN
[Photo]
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
INTERNATIONAL FUND
GLOBAL GROWTH OPPORTUNITIES FUND
GLOBAL SMALLER COMPANIES FUND
GLOBAL TECHNOLOGY FUND
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INVESTING AROUND THE WORLD FOR CAPITAL APPRECIATION
APRIL 30, 1996 o MID-YEAR REPORT
<PAGE>
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- --------------- J. & W. SELIGMAN & CO. INCORPORATED
OVER THE LONG TERM
J. & W. Seligman & Co. Incorporated has been providing
financial services for more than 130 years. Since 1864,
[PHOTO] Seligman has followed a long-term approach to making
money for its clients by managing investment products
and providing services of the highest quality.
SELIGMAN HENDERSON CO.
- --------------- THE EXPERIENCED GLOBAL MANAGER
SELIGMAN
ESTABLISHED 1864 The global and international
funds in the Seligman Group of Funds are managed by
Seligman Henderson Co., a joint venture established by
Seligman of New York and Henderson Administration Group
plc of London. Together, the two firms have more than
200 years of investment experience, and manage more than
$30 billion in combined assets.
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, giving its mutual fund shareholders unique
access to global markets.
Seligman Henderson's top-down investment style generally
focuses on determining where assets should be placed in
terms of geographical region and country. Seligman and
Henderson combined employ more than 100 investment
professionals who seek investment opportunities by
focusing on companies around the world with
above-average earnings.
- --------------- ---------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL FUND
Seligman Henderson International Fund, which commenced
[PHOTO] 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.
- ---------------
HENDERSON SELIGMAN HENDERSON GLOBAL GROWTH
INVESTING SINCE 1872 OPPORTUNITIES FUND
Seligman Henderson Global Growth Opportunities Fund,
which commenced operations on November 1, 1995, seeks
long-term capital appreciation by investing primarily in
the stocks of companies that have the potential to
benefit from global economic or social trends.
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, in the US and around the world.
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 that operate in the
technology and technology-related industries.
IN ADDITION TO THE FUNDS DETAILED IN THIS REPORT, THE
NEWEST ADDITION TO THE SELIGMAN HENDERSON GLOBAL FUND
SERIES, INC. IS SELIGMAN HENDERSON EMERGING MARKETS
GROWTH FUND, INTRODUCED ON MAY 28, 1996. THE FUND SEEKS
LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN
EQUITY SECURITIES OF EMERGING MARKETS AROUND THE WORLD.
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TO THE SHAREHOLDERS Since we last reported to you in October 1995, economic
activity around the world has been mixed. The economic
environment in the US, UK, and Japan improved somewhat,
while in Continental Europe the overall rate of economic
activity continued to decline. In virtually all markets,
however, short-term interest rates fell but long-term
bonds showed some weakness. Overall, inflation remains
subdued, probably near a low, and is not likely to rise
enough to damage the expectations for stable interest
rates for the remainder of the year.
Through the six months ended April 30, the US economy
proved resilient, continuing its moderate,
non-inflationary growth, with earlier pessimistic
forecasts having turned positive. Although capital
spending declined in the first quarter, increased
consumer spending, solid employment growth, and a slight
increase in personal income all pointed to a healthy
economy. The US stock market performed well, with
continued support from corporate earnings and heavy
inflows into mutual funds. However, the strength derived
from falling long-term bond yields, seen earlier in the
period, had disappeared by March.
There has been quite a contrast between the UK and
Continental Europe since November 1995. Even though
short-term interest rates declined in both, the UK's
economy is showing signs of recovery while Continental
Europe's economy is still clearly slowing. There are,
however, positive forecasts for Continental Europe's
economy in the second half of 1996. In the equity
markets, the UK stock market performed poorly, as
political turmoil created uncertainty which will endure
until elections are held. By contrast, in Continental
Europe, equities have recovered strongly since the
beginning of 1996, supported by both falling interest
rates and the anticipated improvement in corporate
profits spurred by expectations of economic recovery.
The narrowing differential in long-term interest rates
between peripheral Continental European countries and
Germany has also proven to be a very positive background
for equity investing. However, Continental European
currencies generally weakened against the US Dollar
during the six-month period, dampening returns in US
Dollar terms.
Japan's economy finally started to show signs of
progress. The government pushed forward with proposals
to use public money to help bail out the beleaguered
financial system. Also, the major banks finally
disclosed the scale of their losses and announced major
write-offs. Thus, the long-running financial crisis
seems nearly at an end. At the same time, Japan's stock
market continued to recover from its slow start in the
beginning of 1996, and from its lows of a year ago.
Elsewhere in Asia, the picture was mixed. While China's
more controlled expansion and declining rate of
inflation are promising, its continued belligerence
toward Taiwan, particularly before its elections, is
cause for concern. With the exceptions of Korea and
Taiwan, both beset by political difficulties, most Asian
stock markets rose in the last six-month period,
supported by strong cash flows from the US. Markets in
Taiwan and Korea, however, showed signs of progress in
April.
We remain positive on the outlook for Seligman Henderson
Global Fund Series, Inc., as discussed in more detail in
the pages ahead. Seligman Henderson looks forward to
continuing to help you meet your global investment needs
for years to come.
By order of the Board of Directors,
/s/ William C. 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.
May 31, 1996
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1
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<TABLE>
<CAPTION>
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SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
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GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL OPPORTUNITIES COMPANIES TECHNOLOGY
HIGHLIGHTS April 30, 1996 FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS (in millions):
Class A $52.9 $104.5 $228.1 $565.2
Class B 0.3 1.2 5.9 1.5
Class D 45.9 42.9 183.7 219.4
----- ------ ------ ------
Total $99.1 $148.6 $417.7 $786.1
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DIVIDENDS (Class A)* -- -- -- $0.019
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CAPITAL GAIN DISTRIBUTIONS
(Class A and Class D)* $0.916 -- $0.955 $0.771
- ---------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS:
Class A
One Year:
With sales charge(1) 12.01% N/A 30.45% 25.94%
Without sales charge(2) 17.63 N/A 36.93 32.20
Since inception: 4/7/92 11/1/95 9/9/92 5/23/94
With sales charge(1) 12.11% 8.80% 24.82% 33.58%
Without sales charge(2) 13.46 14.29 26.50 37.01
Class B
Since inception April 22, 1996:
With 5% CDSL(1) (4.88) (3.88) (2.65) (0.38)
Without CDSL(2) 0.12 1.12 2.35 4.62
Class D
One Year:
With 1% CDSL(1) 15.77 N/A 34.85 30.10
Without CDSL(2) 16.77 N/A 35.85 31.10
Since inception: 9/21/93 11/1/95 5/3/93 5/23/94
With 1% CDSL(1) N/A 12.87% N/A N/A
Without CDSL(2) 10.13% 13.87 24.67% 35.85%
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NET ASSET VALUE PER SHARE:
Class A $17.78 $8.16 $15.15 $12.19
Class B 17.40 8.13 14.78 12.00
Class D 17.40 8.13 14.78 12.00
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MAXIMUM OFFERING PRICE PER SHARE:
Class A $18.67 $8.57 $15.91 $12.80
Class B 17.40 8.13 14.78 12.00
CLASS D 17.40 8.13 14.78 12.00
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</TABLE>
* Represents per share amount paid during the six months ended April 30,
1996.
(1) Represents the average compound rate of return per year over the specified
period and reflects change in price and assumes all distributions within
the periods are reinvested in additional shares; also reflects the effect
of the 4.75% maximum initial sales charge for Class A or contingent
deferred sales load ("CDSL") for Classes B and D, if applicable. No
adjustment was made to the International Fund Class A shares' performance
for periods prior to September 21, 1993, the commencement date of the
annual Administration, Shareholder Services and Distribution Plan fee of up
to 0.25% of average daily net assets of Class A shares.
(2) Represents the rate of return as above, but does not reflect the effect of
the 4.75% maximum initial sales charge or CDSL.
NOTE: THERE ARE SPECIFIC RISKS ASSOCIATED WITH GLOBAL INVESTING, SUCH AS
CURRENCY FLUCTUATIONS, FOREIGN TAXATION, DIFFERENCES IN FINANCIAL REPORTING
PRACTICES, AND RAPID CHANGES IN POLITICAL AND ECONOMIC CONDITIONS. THE
PERFORMANCES OF CLASS B AND CLASS D SHARES WILL BE GREATER OR LESS THAN THE
PERFORMANCE SHOWN FOR CLASS A SHARES, BASED ON THE DIFFERENCES IN SALES
CHARGES AND FEES PAID BY SHAREHOLDERS AND THE LENGTH OF THE HOLDING PERIOD.
THE RATES OF RETURN WILL VARY AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE. SHARES, IF REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE INVESTMENT
RESULTS.
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2
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SELIGMAN HENDERSON Overall, the economic background since November 1995 has
INTERNATIONAL FUND been rather beneficial for large-capitalization
companies in the international stock markets. The US,
UK, and most emerging markets in Asia and Europe have
IAIN C. CLARK, continued to grow satisfactorily, and there are signs of
PORTFOLIO MANAGER a recovery in Japan. The only weak area has been
Continental Europe, where declining interest rates
should lead to stronger economic growth later in the
- ------------------ year. In general, inflation continued to be low and
short-term interest rates either remained stable or
declined further. Thus, investors have become more
positive about the economic outlook for the rest of
[PHOTO] 1996. This has had contrasting effects on bonds and
equities; long-term bond yields have risen (and prices
have fallen) while most equity markets have performed
well.
- ------------------
INTERNATIONAL TEAM: In the six months ended April 30, our top-down
(FROM LEFT) TIM management style led us to change your Fund's country
STEVENSON, JAMES and currency weightings, as we pursued our objective of
ROBINSON, IAIN CLARK long-term capital appreciation. In Europe, we made a
(PORTFOLIO MANAGER), significant reduction in the UK at the end of 1995, and
PETER BASSETT, DAVID continued to reduce the weighting through the first
THORNTON. MISSING FROM quarter of 1996. Overall, the UK weighting declined from
PHOTO: BEN ELWES, 19.2% to its current level of 13.7%. In contrast, we
WILLIAM PITMAN increased Continental Europe's weighting, most
significantly in France. Though we favor Continental
Europe, it is likely that the currencies there will
weaken against the US Dollar. We have therefore
introduced some modest hedges against both the German
Deutschemark and French Franc to protect our assets in
these countries against a strong US Dollar.
In the Far East, we increased our weightings in most of
the smaller markets, particularly in Hong Kong and
Malaysia. In addition, we reduced our Yen hedge from
56.5% of the assets to 34.8%, which reflects profit
taking after the US Dollar's strong rise in 1995 and the
early part of 1996. Currently, 15.6% of the portfolio's
assets are hedged.
Looking ahead, it is expected that the major economies
will grow at or above trend in the latter part of 1996
and into 1997, although high consumer debt levels
throughout the world suggest that growth will not
accelerate too quickly. We anticipate a slight pickup
globally in the rate of inflation and short-term
interest rates, with Continental Europe as the probable
exception. Long-term yields, however, will probably
trade near current levels. Therefore, stock markets will
likely focus on the growth of corporate profits. The UK
is already farther down the profit recovery path than
elsewhere, and we expect only modest increases in the
future. In contrast, Japan and Continental Europe are
the main attractions for equity markets, as both have
additional potential for significant profits recovery.
The picture is mixed in the Pacific, with some signs of
overheating in Malaysia and Thailand. Liquidity flows,
nonetheless, continue to be strong and should keep
markets bubbling, and we expect stock markets overall to
make further progress during the course of 1996.
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SELIGMAN HENDERSON INTERNATIONAL FUND
PERCENTAGE OF INVESTMENTS BY COUNTRY AT APRIL 30, 1996
----------------------------------------------------------------------------
Japan 28.6% Sweden 2.8% Norway 1.4%
United Kingdom 13.7 Australia 2.7 Thailand 1.2
France 10.1 Malaysia 2.7 South Korea 0.9
Switzerland 7.1 Spain 2.7 Taiwan 0.9
Germany 6.7 ItalY 2.2 Indonesia 0.8
Hong Kong 5.3 Singapore 2.1 Argentina 0.7
Netherlands 4.3 India 1.8 Mexico 0.7
Philippines 0.6
-----------------------
Total 100.0%
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3
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SELIGMAN HENDERSON Since November, the expectations for global economic
GLOBAL GROWTH growth have turned more positive. In the US, growth
OPPORTUNITIES FUND appears to be picking up as the impact of bad weather,
government shutdowns, and inventory surpluses fades
NITIN MEHTA AND away. Continental Europe's economies are still subdued,
LORIS MUZZATTI, although lower short-term interest rates and weaker
PORTFOLIO MANAGERS currencies should help revive growth later this year.
Additionally, there is growing evidence that the
- ------------------- Japanese economy is bouncing back in response to
aggressive fiscal and monetary stimuli. Despite the
widespread re-acceleration of economic growth, inflation
remains low globally.
Since the inception of your Fund in November 1995, we
[PHOTO] have remained fully invested. The six-month period since
then was characterized by slow economic expansion which
favored growth stocks. In this slow growth environment,
we pursued the Fund's objective of capital appreciation
by investing in growth stocks across a range of
- ------------------- capitalization sizes. Our portfolio strategy is focused
INTERNATIONAL TEAM: on four major growth themes: "Consumer is King," "Global
(FROM LEFT) DAVID Trade," "Productivity," and "Quality of Life." The
THORNTON, PETER greatest emphasis has been on the consumption theme,
BASSETT, MICHAEl which led to several rewarding stock selections in both
WOOD-MARTIN, HEATHER the Far East and emerging markets, including Indian
MANNERS, IAIN CLARK, Hotels in India, and Serm Suk, a Pepsi bottler in
STACEY NAVIN, BEN Thailand. We will continue to concentrate your Fund's
ELWES, NITIN MEHTA holdings in consumer goods, technology, health care, and
(PORTFOLIO MANAGER). media, as we believe these sectors offer the best
MISSING FROM PHOTO:* earnings growth potential over the next few years.
ANDREW STACK
Your Fund's assets are broadly diversified, with
approximately 25% invested in the US, and the remainder
- ------------------ of the portfolio invested internationally throughout
Europe, Japan, the Pacific, and the emerging markets. In
addition, we placed partial hedges against the Japanese
Yen, German Deutschemark, French Franc, and Swedish
Krona to protect the Fund's assets against a strong US
Dollar.
[PHOTO]
Looking ahead, we believe that the re-acceleration of
global economic growth will continue to be gradual
rather than explosive. Quite simply, in an environment
where governments are intent on reducing deficits and
corporations are competitively restructuring, runaway
- ------------------ expansion is unlikely. This backdrop implies a blend of
US TEAM: (FROM LEFT) modest growth and low inflation, which is ideal for
LOUISE OH, NATALIE further market gains and particularly beneficial for
BILLON, LOUISE KNIGHT, growth stocks and your Fund. Additionally, market
DAVE LEVY, KEN valuations relative to prospective earnings growth are
LONDONER, (SEATED) no longer as attractive in the US and the Pacific. We
Loris Muzzatti may, therefore, reduce your Fund's investments in both
(PORTFOLIO MANAGER) areas and reallocate a portion of the assets to Europe,
where we believe interest rates should remain steady and
growth is expected later this year.
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SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
PERCENTAGE OF INVESTMENTS BY COUNTRY AT APRIL 30, 1996
---------------------------------------------------------------------------
United States 25.0% Germany 3.7% Brazil 1.6%
Japan 20.7 India 3.6 Malaysia 1.6
United Kingdom 9.9 Australia 2.4 Denmark 1.5
Sweden 5.0 Singapore 2.1 Italy 1.4
Hong Kong 4.2 Indonesia 2.0 Hungary 1.3
Switzerland 4.2 South Africa 1.9 Netherlands 1.3
France 3.7 Thailand 1.9 China 0.5
Finland 0.5
--------------------
Total 100.0%
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4
<PAGE>
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SELIGMAN HENDERSON When we last reported to you in October 1995, the global
GLOBAL SMALLER economic background was not particularly beneficial for
COMPANIES FUND smaller companies. There has been, however, a
significant change since the beginning of 1996. In most
IAIN C. CLARK AND countries, the growth outlook has become more positive,
ARSEN MRAKOVCIC, which has been reinforced by the strong performance of
PORTFOLIO MANAGERS smaller companies and your Fund. This is particularly
true in 1996, during which smaller companies have
- -------------------- outperformed larger companies in all regions.
Within the portfolio, we continued to decrease the US
weighting and directed most of the new cash flow into
the international markets. We specifically reduced our
[PHOTO] US investment in technology and thus avoided much of the
sector's volatility. Currently, the US weighting is
being maintained at approximately 31%. Otherwise, both
Continental Europe's and Japan's weighting increased
slightly. As your Fund increased in size, we added a
number of holdings so that by April 30 it held 197
- -------------------- stocks. We continue to maintain a broad investment
INTERNATIONAL TEAM: strategy, as we believe smaller companies are attractive
(FROM LEFT) HEATHER in virtually all major markets.
MANNERS, ANDREW STACK,
WILLIAM GARNETT, Looking at currencies, we reduced a portion of the
STEPHEN PEAK. MISSING hedged Japanese Yen assets as we had taken some profits
FROM PHOTO: IAIN CLARK following the Yen's weakness in 1995. We also introduced
(PORTFOLIO MANAGER) partial hedges against the French Franc and German
Deutschemark, seeking to mitigate any US Dollar strength
against European currencies.
- --------------------
Looking ahead, we do not foresee any major changes to
our country strategy. Our economic forecast suggests
improving trends in virtually all markets, and we
believe the background for smaller companies is very
promising; this has been particularly evident in their
[PHOTO] strong performance thus far in 1996. We anticipate that
after generally poor performance for the last two years,
smaller companies should continue this strong growth
trend for quite some time, and we believe that the next
12 months, at least, should be rewarding in almost every
market.
- --------------------
US TEAM: (FROM LEFT)
GUS SCACCO, CARLENE
PALIA, SHANEAN AUSTIN,
BRUCE ZIRMAN,
(SEATED) ARSEN MRAKOVCIC
(PORTFOLIO MANAGER),
PAUL WICK
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SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
PERCENTAGE OF INVESTMENTS BY COUNTRY AT APRIL 30, 1996
----------------------------------------------------------------------------
United States 30.8% Norway 1.8% Austria 0.8%
Japan 18.3 Finland 1.6 Canada 0.7
United Kingdom 15.3 Australia 1.3 India 0.4
Sweden 7.0 Italy 1.3 Thailand 0.3
France 4.9 Singapore 1.2 Argentina 0.2
Switzerland 3.2 Denmark 1.1 Brazil 0.1
Germany 2.4 Malaysia 1.1 Spain 0.1
Netherlands 2.4 Belgium 1.0 -------------------
Hong Kong 1.8 Indonesia 0.9 Total 100.0%
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----
5
<PAGE>
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SELIGMAN HENDERSON After enjoying exceptionally strong performance in the
GLOBAL TECHNOLOGY FUND first nine months of 1995, the technology sector lost
some of its momentum since we last reported to you in
BRIAN ASHFORD-RUSSELL October 1995. The US technology sector saw a correction
AND PAUL H. WICK, of close to 20% between early November and mid-January
PORTFOLIO MANAGERS before recovering to finish modestly up for the
reporting period ended April 30. Despite a healthy
- ------------------- recovery over the last four months, prices of US
semiconductor stocks remain some 30% below last autumn's
peak. In Europe, performance was mixed, though
individual stocks in the UK showed substantial
increases. Volatility in the US was duplicated in Japan,
[PHOTO] although the correction there was more subdued and the
return in the six months ended April 30 exceeded that of
the US.
Although demand in the technology industry remained
firm, it failed to meet the high fourth quarter 1995
- ------------------- expectations and left many manufacturers, particularly
INTERNATIONAL TEAM: in the personal computer industry, with excess
(FROM LEFT) TIM WOOLEY, inventories early in 1996. The subsequent inventory
EMMA PARKINSON, NICKI adjustment had dramatic consequences on the
BARKER, BRIAN semiconductor industry, transforming what was previously
ASHFORD-RUSSELL a seller's market into a buyer's paradise. Component
(PORTFOLIO MANAGER) pricing, particularly of memory chips, fell sharply and
raised fears of a general downturn in the component
industry. To a large extent, these fears proved
- ------------------- unfounded, but did much to increase volatility in the
technology market and helped produce the deep correction
in semiconductor share prices seen in both the US and
the Far East.
[PHOTO] Within the portfolio, we reduced our semiconductor
exposure in all regions by December. To offset the
impact of the setback in the semiconductor industry, we
increased your Fund's exposure to the networking and
communications sectors in the US. Demand in these
industries continues to be robust and earnings growth
- ------------------- remains outstanding. As of April 30, 56.0% of our assets
US TEAM: (FROM LEFT) were invested in the US, reflecting our enthusiasm for
GUS SCACCO, CARLENE the US technology market.
PALIA, SHANEAN AUSTIN,
BRUCE ZIRMAN, Outside the US, the six-month period proved more
(SEATED) ARSEN rewarding, with the majority of our gains coming from
MRAKOVCIC, PAUL WICK Europe. In Europe, we have focused on the outsourcing
(PORTFOLIO MANAGER) theme and have established significant positions in
computer service companies such as Logica and CMG, both
in the UK, and built up new positions in Altran
Technologies and Admiral, in France and the UK,
respectively. Throughout the period we maintained a
significant weighting in the UK. On the other hand, we
cut back our Japanese exposure in the first quarter of
1996, due to concerns that the US technology market's
weakness would impact its Japanese counterpart. Overall,
both UK and Japanese technology stocks made progress
during the period, but stocks in Continental Europe and
Asia remained subdued.
Looking ahead, we believe that the third quarter of 1996
will mark the end of the inventory adjustment that has
plagued the US technology market, and that renewed
economic momentum in the second half of the year,
combined with major new product cycles, will lead to
improved US stock performance. We are currently adding
to your Fund's communications exposure, as we believe
that the recent underperformance in this area is coming
to an end. In Japan, we anticipate that we will increase
your Fund's position in software and in the rapidly
growing mobile communications market. Following a
difficult first three months of the year, the technology
sector is beginning to show renewed vigor. We believe
that the long-term prospects for the technology industry
around the world remain outstanding. With the
anticipated acceleration in the economies of the US,
Europe, and Japan, we expect that the second half of
1996 will see an increase in demand, which bodes well
for your Fund's performance.
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
PERCENTAGE OF INVESTMENTS BY COUNTRY AT APRIL 30, 1996
----------------------------------------------------------------------------
United States 56.0% South Korea 1.4% Denmark 0.9%
United Kingdom 14.0 France 1.3 Hong Kong 0.9
Japan 11.2 Netherlands 1.3 Singapore 0.8
Italy 3.6 Taiwan 1.1 Australia 0.7
Israel 2.4 Germany 1.0 Thailand 0.6
Canada 1.4 Sweden 1.0 Luxembourg 0.3
Brazil 0.1
--------------------
Total 100.0%
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6
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SELIGMAN HENDERSON
INTERNATIONAL
FUND
MAJOR PORTFOLIO HOLDINGS
AT APRIL 30, 1996
SECURITY VALUE
- -------- ----------
Pioneer Electronic ..................... $2,743,102
East Japan Railway ..................... 2,669,135
Nippon Telegraph & Telephone ........... 2,651,160
Toshiba ................................ 2,575,630
ING Groep .............................. 1,580,819
Mitsui O.S.K. Lines .................... 1,575,411
Carrefour Supermarche .................. 1,546,468
Elsevier ............................... 1,526,476
Cie Generale des Eaux .................. 1,497,616
ABB .................................... 1,459,307
LARGEST PORTFOLIO CHANGES*
DURING THE SIX MONTHS ENDED APRIL 30, 1996
SHARES
---------------------
HOLDINGS
ADDITIONS INCREASE 4/30/96
- -------- ---------- ----------
Citic Pacific ................ 269,000 269,000
DBS Land ..................... 213,000 213,000
Guangdong Investments ........ 1,450,000 1,450,000
HSBC Holdings ................ 65,200 65,200
Iberdrola .................... 132,840 132,840
Olivetti ..................... 1,232,523 1,232,523
Siebe ........................ 90,000 90,000
Siemens ...................... 2,561 2,561
Sun Hung Kai Properties ...... 118,000 118,000
Westpac Banking .............. 190,000 190,000
HOLDINGS
REDUCTIONS DECREASE 4/30/96
- -------- ---------- ----------
Akzo Nobel ................... 7,443 --
BTR .......................... 258,000 --
Farnell Electronics .......... 92,000 --
Gadjah Tunggal ............... 1,563,000 --
Groupe Danone ................ 5,048 --
Hong Kong Telecommunication .. 590,000 --
Jurong Shipyard .............. 186,000 --
Reuters Holdings ............. 91,000 69,000
United Overseas Bank ......... 69,000 54,660
Yamaha ....................... 50,000 70,000
- ---------------
* Largest portfolio changes from the previous period to the current period
are based on cost of purchases and proceeds from sales of securities.
SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
MAJOR PORTFOLIO HOLDINGS
AT APRIL 30, 1996
SECURITY VALUE
- -------- ---------
Shimachu ............................... $2,605,194
Serm Suk ............................... 2,602,800
Keyence ................................ 2,564,689
Ryoyo Electro .......................... 2,563,736
DDI .................................... 2,527,567
Kyocera ................................ 2,403,240
Secom .................................. 2,397,903
Joshin Denki ........................... 2,341,291
Asahi Diamond Industries ............... 2,316,212
Tsutsumi Jewelry ....................... 2,297,260
- --------------------------------------------------------------------------------
As Seligman Henderson Global Growth Opportunities Fund began operations on
November 1, 1995, "Largest Portfolio Changes" are not applicable for this
reporting period.
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7
<PAGE>
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SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
MAJOR PORTFOLIO HOLDINGS
AT APRIL 30, 1996
SECURITY VALUE
- -------- ---------
IDX Systems ............................. $4,625,000
Sun International Hotels ................ 4,275,000
Oakley .................................. 3,956,000
CalEnergy ............................... 3,900,000
Dendrite International .................. 3,860,000
Sylea ................................... 3,845,385
Canandaigua Wine (Class A) .............. 3,812,500
D'Ieteren Trading ....................... 3,763,677
Industria Macchine Automation ........... 3,698,071
SIG Schweitz Industrie .................. 3,628,468
LARGEST PORTFOLIO CHANGES*
DURING THE SIX MONTHS ENDED APRIL 30, 1996
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 4/30/96
- ------------- -------- --------
Canandaigua Wine (Class A) .... 89,000 125,000
Childtime Learning Centers .... 225,000 225,000
Fokus Bank .................... 647,000 647,000
GTECH Holdings ................ 110,000 110,000
IDX Systems ................... 125,000 125,000
Industria Macchine Automation . 525,000 525,000
LoJack ........................ 276,000 276,000
PLM ........................... 193,600 193,600
SIG Schweitz Industrie ........ 3,200 3,200
Virbac ........................ 20,000 24,972
HOLDINGS
REDUCTIONS DECREASE 4/30/96
- ------------- -------- --------
Apcoa Parking ................. 16,360 --
BMC Industries ................ 110,000(1) 50,000
Dalloz ........................ 5,860 --
DIMAC ......................... 84,500 --
Electronics for Imaging ....... 45,000 --
Hummingbird Communications .... 60,000 --
Protein Design Labs ........... 70,000 --
Sanmina ....................... 45,000(2) --
SITEL ......................... 70,000 30,000
SunGard Data Systems .......... 71,800 48,200
- ----------
* 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 80,000 shares received as a result of a 2-for-1 stock split.
(2) Includes 15,000 shares received as a result of a 3-for-2 stock split.
SELIGMAN HENDERSON
GLOBAL TECHNOLOGY
FUND
MAJOR PORTFOLIO HOLDINGS
AT APRIL 30, 1996
SECURITY VALUE
- ----------- ------------
Synopsys ............................... $12,412,500
Tencor Instruments ..................... 12,343,750
Atmel .................................. 11,981,250
Glenayre Technologies .................. 11,160,000
Komag .................................. 11,096,250
LSI Logic .............................. 10,800,000
StrataCom .............................. 10,412,000
EMC .................................... 10,250,000
KLA Instruments ........................ 10,150,000
Zilog .................................. 9,406,250
LARGEST PORTFOLIO CHANGES*
DURING THE SIX MONTHS ENDED APRIL 30, 1996
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 4/30/96
- --------- -------- --------
EMC ......................... 500,000 500,000
LSI Logic ................... 200,000 300,000
Maxim Integrated Products ... 250,000 250,000
Mentor Graphics ............. 500,000 500,000
Oak Technology .............. 500,000 500,000
Olivetti .................... 13,000,000 13,000,000
S3 .......................... 500,000 500,000
StrataCom ................... 200,000 200,000
Tektronix ................... 160,000 160,000
U.S. Robotics ............... 50,000 50,000
HOLDINGS
REDUCTIONS DECREASE 4/30/96
- ------------- -------- --------
Advantest ................... 105,000 --
Alantec ..................... 145,000 --
Applied Materials ........... 140,000 --
Aspect Telecommunications ... 160,000 --
Cypress Semiconductor ....... 600,000(1) --
DSP Communications .......... 150,000 --
ESS Technology .............. 252,500 --
In Focus Systems ............ 125,000 --
Micron Technology ........... 100,000 --
SDL ......................... 155,000 --
- -------------
* 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 300,000 shares received as a result of a 2-for-1 stock split.
- ----
8
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1996
SHARES VALUE
------ -----
COMMON STOCKS 96.2%
BANKING 10.7%
BANCO DE SANTANDER (SPAIN)
Worldwide banking operation 26,960 $ 1,250,902
CS HOLDINGS (SWITZERLAND)
Banking group 6,637 601,787
DEUTSCHE BANK (GERMANY)
Worldwide banking operation 27,026 1,294,479
HSBC HOLDINGS (HONG KONG)
Provider of banking services 65,200 973,537
MALAYAN BANKING (MALAYSIA)
Provider of banking services 84,000 818,575
ROYAL BANK OF SCOTLAND (UK)
Provider of banking services 108,000 844,732
SIAM COMMERCIAL BANK (THAILAND)
Provider of banking services 42,000 618,711
SOCIETE GENERALE (FRANCE)
Provider of full banking and
financial services 12,044 1,397,756
SUMITOMO TRUST AND BANKING (JAPAN)
Trust bank 92,000 1,341,530
UNITED OVERSEAS BANK (SINGAPORE)
Comprehensive banking
operation with substantial
interests in Malaysia 54,660 532,605
WESTPAC BANKING (AUSTRALIA)
Provider of banking services 190,000 923,567
------------
10,598,181
------------
BUILDING MATERIALS 2.7%
CARADON (UK)
Supplier of building products 222,000 769,500
GUJURAT AMBUJA CEMENT (GDSS) (INDIA)
Cement producer 67,200 823,200
LAFARGE COPPEE (FRANCE)
Global manufacturer of building
materials, including cement
and concrete 16,979 1,087,050
------------
2,679,750
------------
BUSINESS SERVICES 2.4%
CSK (JAPAN)
Information services company 46,000 1,424,827
RENTOKIL (UK)
Provider of commercial services
such as pest control and office
maintenance 160,400 924,620
------------
2,349,447
------------
CHEMICALS 4.1%
BAYER (GERMANY)
Producer of specialty chemicals,
pharmaceuticals, and plastics 4,365 1,405,037
DSM (NETHERLANDS)
Manufacturer of commodity chemicals 9,236 943,605
NORSK HYDRO (NORWAY)
Natural resources processor 29,442 1,342,541
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 68,000 421,253
------------
4,112,436
------------
CONSTRUCTION AND PROPERTY 3.0%
LAND AND HOUSE (THAILAND)
Residential property developer 37,000 571,428
SWIRE PACIFIC (HONG KONG)
Conglomerate with major
interests in property
development and aviation 121,000 1,032,410
UNITED ENGINEERS (MALAYSIA)
Construction, principally managing
expressways 116,000 795,477
UNITED INDUSTRIAL (SINGAPORE)
Property company, mainly in
commercial rental 589,000 599,054
------------
2,998,369
------------
CONSUMER PRODUCTS 3.0%
KAO (JAPAN)
Manufacturer of cosmetics and
personal care products 62,000 827,258
NESTLE (SWITZERLAND)
Allied companies engaged in food
processing, pharmaceuticals,
and cosmetics 1,222 1,357,123
UNILEVER (UK)
Major producer of consumer
goods and personal care products 43,000 788,006
------------
2,972,387
------------
ELECTRONICS 8.4%
ALPS ELECTRIC (JAPAN)
Manufacturer of electrical
equipment 66,000 773,696
PIONEER ELECTRONIC (JAPAN)
Manufacturer of audio equipment,
including laser disks 123,000 2,743,102
SAMSUNG ELECTRONICS (GDRS)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 4,219 177,198
SAMSUNG ELECTRONICS (GDSS)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 14,000 588,000
SAMSUNG ELECTRONICS (GDRS) (VOTING)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 126 9,765
SAMSUNG ELECTRONICS (GDSS) (VOTING)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 420 33,075
SIEMENS (GERMANY)
Global power; engineering; and
telecommunications 2,561 1,399,861
TOSHIBA (JAPAN)
Diversified manufacturer of
consumer and industrial
electronics 332,000 2,575,630
------------
8,300,327
------------
FINANCIAL SERVICES 0.8%
NOMURA SECURITIES (JAPAN)
Japan's largest securities firm 35,000 760,543
------------
- ----------------
See footnotes on page 23.
----
9
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
HEALTH AND HOUSEHOLD 2.8%
ROCHE HOLDINGS (SWITZERLAND)
European pharmaceutical
company and chemicals producer 177 $ 1,389,952
ROUSSEL-UCLAF (FRANCE)
Pharmaceutical, chemical, and
agro-veterinary products 5,979 1,408,592
------------
2,798,544
------------
INDUSTRIAL GOODS AND SERVICES 6.1%
ABB (SWITZERLAND)
Manufacturer of heavy equipment
for electric power generation and
distribution 1,213 1,459,307
CIE GENERALE DES EAUX (FRANCE)
Water purification and distribution;
energy production 13,777 1,497,616
CITIC PACIFIC* (HONG KONG)
Holding company with interests in
Cathay Pacific Airlines; telecom-
munications; and power stations 269,000 1,057,179
GUANGDONG INVESTMENTS (HONG KONG)
Guangdong-based conglomerate 1,450,000 895,085
SIEBE (UK)
Designer and manufacturer of
control devices and process
control technology 90,000 1,166,457
------------
6,075,644
------------
INSURANCE 7.1%
ASSICURAZIONE GENERALI (ITALY)
Provider of life and non-life
insurance services and
investment and related services 52,795 1,316,811
AXA (FRANCE)
Provider of insurance and
financial services 22,911 1,364,467
ING GROEP (NETHERLANDS)
Worldwide underwriter of
reinsurance; provider of
financial and consumer credit 20,467 1,580,819
MITSUI MARINE & FIRE (JAPAN)
Provider of non-life insurance 168,000 1,420,214
ZURICH VERSICHERUNG (SWITZERLAND)
Provider of insurance services 4,734 1,321,028
------------
7,003,339
------------
LEISURE AND HOTELS 3.2%
DBS LAND (SINGAPORE)
Property developer 213,000 863,514
GRANADA GROUP (UK)
Television group with additional
leisure interests 96,000 1,192,137
SUN HUNG KAI PROPERTIES (HONG KONG)
Property developer 118,000 1,125,037
------------
3,180,688
------------
MANUFACTURING 4.2%
FKI BABCOCK (UK)
Electrical engineering company 300,000 755,032
HOKKAI CAN (JAPAN)
Manufacturer of cans for
the food industry 32,000 271,737
ROLLS ROYCE (UK)
Aerospace; power generation,
transmission, and distribution
systems 218,000 778,633
SMH NEUENBERG (SWITZERLAND)
Watch manufacturer of brands
including Swatch and Omega 4,500 669,481
TOKYO STEEL MANUFACTURING (JAPAN)
Leading producer of H beams 22,000 442,411
YAMAHA (JAPAN)
Manufacturer of musical instruments
and audio equipment 70,000 1,254,229
------------
4,171,523
------------
MEDIA 5.1%
ELSEVIER (NETHERLANDS)
Global printer and publisher of
professional trade journals and
magazines 101,345 1,526,476
NEWS CORP. (AUSTRALIA)
Global printer and publisher of
professional trade journals
and magazines 146,946 862,229
NIPPON TELEVISION NETWORK (JAPAN)
Japanese television broadcasters 2,630 824,656
REUTERS HOLDINGS (UK)
Holding company for the Reuters
news organization 69,000 781,978
WPP GROUP (UK)
Provider of worldwide marketing
services; including advertising,
public relations, and market
research 340,000 1,045,290
------------
5,040,629
------------
METALS 4.0%
HINDALCO (GDRS)+ (INDIA)
Major aluminum producer 20,000 885,000
MITSUBISHI MATERIALS (JAPAN)
Non-ferrous smelter
and cement producer 229,000 1,374,982
SUMITOMO METAL INDUSTRIES (JAPAN)
Blast furnace and steel producer 415,000 1,328,949
SUMITOMO SITIX (JAPAN)
Titanium producer 18,000 418,585
------------
4,007,516
------------
PAPER AND PACKAGING 1.3%
STORA KOPPARBERGS (SWEDEN)
Manufacturer of forestry products 95,127 1,275,913
------------
- --------------------
See footnotes on page 23.
- ----
10
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
SHARES VALUE
------ -----
RESOURCES 4.2%
BRITISH PETROLEUM (UK)
Oil producer, refiner, and
distributor 103,000 $ 930,581
BROKEN HILL PROPRIETARY (AUSTRALIA)
Largest resources company in
Australia with interests in steel,
oil, and minerals 53,282 820,996
ELF AQUITAINE (FRANCE)
Oil and gas exploration;
manufacturer of chemical compounds 18,118 1,346,760
NIPPON OIL (JAPAN)
One of the largest oil distributors
in Japan 60,000 414,582
YPF SOCIEDAD ANONIMA (ADRS) (ARGENTINA)
Oil and gas producer 30,000 656,250
------------
4,169,169
------------
RESTAURANTS 0.5%
DENNY'S (JAPAN)
Restaurant operator 14,000 531,046
------------
RETAILING 5.4%
ADIDAS (GERMANY)
Sporting goods 11,611 877,075
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 13,600 426,438
CARREFOUR SUPERMARCHE (FRANCE)
Supermarket operator in Europe,
the Americas, and Taiwan 1,980 1,546,468
JOSHIN DENKI (JAPAN)
Electrical appliance retailer 34,000 460,138
SM PRIME HOLDINGS (PHILIPPINES)
Operator of shopping malls 2,085,000 606,081
TESCO (UK)
Supermarket chain 249,000 1,052,592
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer
of jewelry 7,000 349,583
------------
5,318,375
------------
TELECOMMUNICATIONS 6.4%
GRUPO CARSO (ADRS)*+ (MEXICO)
Holding company with a substantial
stake in Telmex and a number
of industrial subsidiaries 45,000 688,194
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Manufacturer of telecommunications
equipment 69,050 1,399,401
NIPPON TELEGRAPH & TELEPHONE (JAPAN)
Telecommunications company 343 2,651,160
OLIVETTI (ITALY)
Telecommunications; office
and computer equipment 1,232,523 789,257
TELEKOMMUNIKASI (INDONESIA)
Domestic telecommunications
monopoly 12,000 20,034
TELEKOMMUNIKASI (ADRS) (INDONESIA)
Domestic telecommunications
monopoly 22,000 750,750
------------
6,298,796
------------
TOBACCO 1.1%
B.A.T. INDUSTRIES (UK)
Manufacturer of tobacco products
and a financial services company 146,000 1,105,647
------------
TRANSPORTATION 7.5%
BAA (UK)
One of the world's largest owner
and operator of airports, including
Heathrow and Gatwick 110,000 906,792
EAST JAPAN RAILWAY (JAPAN)
Provider of railway services 501 2,669,135
LUFTHANSA (GERMANY)
Operator of international airline
services 8,713 1,380,666
MITSUI O.S.K. LINES (JAPAN)
Shipping company 435,000 1,575,411
PERUSAHAAN OTOMOBIL NASIONAL
(MALAYSIA)
Manufacturer of automobiles 188,000 927,334
------------
7,459,338
------------
UTILITIES 1.3%
IBERDROLA (SPAIN)
Electric utility 132,840 1,298,416
------------
MISCELLANEOUS 0.9%
TAIWAN FUND (TAIWAN)
Mainstream closed-end fund 80,000 860,000
------------
TOTAL INVESTMENTS 96.2%
(Cost $83,331,654) 95,366,023
OTHER ASSETS LESS LIABILITIES 3.8% 3,769,871
------------
NET ASSETS 100.0% $99,135,894
============
- --------------------
See footnotes on page 23.
----
11
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
COMMON STOCKS 94.4%
AEROSPACE 2.1%
BOEING (US)
Aerospace manufacturer 18,900 $ 1,552,162
ROLLS ROYCE (UK)
Aerospace; power generation,
transmission, and distribution
systems 450,000 1,607,269
-----------
3,159,431
-----------
AUTOMOTIVE AND RELATED 1.1%
AUTOLIV (ADRS)*+ (SWEDEN)
Manufacturer and retailer of
automobile airbags and other safety
equipment around the world 29,675 1,618,334
-----------
BUSINESS GOODS AND SERVICES 3.2%
FIRST DATA (US)
Information processing 20,200 1,532,675
INTERPUBLIC GROUP OF COMPANIES (US)
Global advertising through
three agencies in various countries 34,400 1,608,200
WPP GROUP (UK)
Provider of worldwide marketing
services; including advertising,
public relations, and market
research 500,000 1,537,191
-----------
4,678,066
-----------
COMPUTER AND TECHNOLOGY RELATED 5.9%
INFORMIX* (US)
Designer, manufacturer, and supporter
of database management systems 44,000 1,157,750
MICROSOFT* (US)
Producer of microcomputer software 15,400 1,743,087
OBJECTIVE SYSTEMS INTEGRATORS* (US)
Developer of client/server software
products 31,500 1,421,437
OLIVETTI (ITALY)
Telecommunications; office and
computer equipment 3,012,265 1,928,930
PARITY (UK)
Software and consultancy 200,000 723,384
STERLING SOFTWARE* (US)
Computer software; management
of data processing software 23,400 1,819,350
-----------
8,793,938
-----------
CONSTRUCTION AND PROPERTY 1.0%
STIC (SINGAPORE)
Turnkey developer of industrial
parks 663,000 1,527,824
-----------
CONSUMER GOODS AND SERVICES 15.0%
ADIDAS (GERMANY)
Manufacturer of sporting goods 27,080 2,045,577
APCOA PARKING* (GERMANY)
Operator of parking garages
throughout Europe 15,500 1,357,206
COCA-COLA AMATIL (AUSTRALIA)
Manufacturer and marketer of
Coca-Cola products for Australia,
the Far East, and Eastern Europe 156,000 1,642,977
LVMH (LOUIS VUITTON MOET-HENNESSY)
(FRANCE)
Producers of wine, spirits,
and luxury products 6,310 1,613,505
MODERN PHOTO FILM (INDONESIA)
Producer and distributor of Fuji
photo film and other photographic
materials 260,000 1,270,131
OAKLEY* (US)
Manufacturer of designer
sunglasses and goggles 41,500 1,909,000
PEPSICO (US)
Global soft drinks, snack foods,
and restaurants 25,500 1,619,250
PROCTER & GAMBLE (US)
Household products 16,800 1,420,650
H.M. SAMPOERNA (INDONESIA)
Manufacturer of cigarettes
specializing in filter-less
hand-rolled clove cigarettes 142,000 1,567,275
RAISION TEHTAAT (FINLAND)
Processor and marketer of
agricultural products 20,000 661,697
R.J. REYNOLDS BERHAD (MALAYSIA)
Manufacturer and marketer of
tobacco products 300,000 950,433
SERM SUK (THAILAND)
Manufacturer and distributor of
Pepsi Cola drinks under franchise 84,700 2,602,800
SMH NEUENBERG (SWITZERLAND)
Watch manufacturer 13,000 1,934,057
SOUTH AFRICAN BREWERIES (SOUTH AFRICA)
Investor in the beverage, retail,
and hotel industries 39,150 1,130,196
YUE YUEN INDUSTRIAL HOLDINGS
(HONG KONG)
Holding company for athletic
footwear manfacturers 2,594,000 630,450
-----------
22,355,204
-----------
DISTRIBUTORS 1.7%
RYOYO ELECTRO (JAPAN)
Distributor of electronic goods 100,000 2,563,736
-----------
DIVERSIFIED 1.1%
CITIC PACIFIC* (HONG KONG)
Holding company with interests
in Cathay Pacific Airlines;
telecommunications; and power
stations 432,000 1,697,775
-----------
- -------------
See footnotes on page 23.
- ----
12
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
DRUGS AND HEALTH CARE 10.5%
AMGEN* (US)
Biotechnology company 26,500 $ 1,522,094
BIOCHEM PHARMACEUTICAL* (US)
Researcher and developer of
therapeutic products 18,000 817,875
COLUMBIA/HCA HEALTHCARE (US)
Provider of medical services in
several specialty hospitals 28,500 1,514,062
GUIDANT (US)
Healthcare products; cardiac rhythm
management; catheters 34,800 1,953,150
HOGY MEDICAL (JAPAN)
Largest producer of disposable
surgical gowns and medical supplies 22,000 1,132,237
PFIZER (US)
Ethical drugs; hospital products;
and specialty chemicals 22,200 1,526,250
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 50,600 1,924,181
RICHTER GEDEON (HUNGARY)
Manufacturer of pharmaceuticals,
cosmetics, and pesticides 53,000 1,868,250
ROUSSEL-UCLAF (FRANCE)
Pharmaceutical, chemical, and
agro-veterinary products 8,435 1,987,201
UNITED HEALTHCARE (US)
Owner and manager of HMO and
specialty managed care centers 23,400 1,365,975
-----------
15,611,275
-----------
ELECTRIC AND GAS UTILITIES 1.5%
BSES (GDRS) (INDIA)
Electric utility supplying Bombay 75,000 1,509,375
HUANENG POWER INTERNATIONAL (ADRS)*
(CHINA)
Developer and manufacturer of
coal-fired power plants in China 45,000 703,125
-----------
2,212,500
-----------
ELECTRONICS 3.4%
KEYENCE (JAPAN)
Manufacturer of detection devices
and measuring control equipment 19,500 2,564,689
KYOCERA (JAPAN)
World's largest manufacturer of
IC ceramic packages 32,000 2,403,240
NIHON DEMPA KOGYO (JAPAN)
Manufacturer of quartz electronic
parts in Malaysia and China 3,000 70,336
-----------
5,038,265
-----------
ENTERTAINMENT AND LEISURE 5.4%
DISNEY, WALT (US)
Theme parks; films; and consumer
products 19,700 1,220,169
GRANADA GROUP (UK)
Television group with additional
leisure interests including hotels 128,800 1,599,450
HIS (JAPAN)
Travel agency specializing in
overseas and package tours 28,000 1,643,841
INDIAN HOTELS (GDRS)* (INDIA)
Owner, operator, and manager of
luxury hotels 70,000 2,047,150
VIACOM (CLASS B) (US)
Diverse entertainment
communications company 36,600 1,500,600
-----------
8,011,210
-----------
FINANCIAL SERVICES 5.8%
AMERICAN INTERNATIONAL GROUP (US)
Commercial and industrial insurer 15,500 1,417,281
DONALDSON, LUFKIN & JENRETTE (US)
Leading investment and
merchant bank 44,600 1,505,250
MANHATTAN CARD (HONG KONG)
Operator of credit card business 3,070,000 1,825,656
MBNA (US)
Issuers of credit cards; deposit,
loan, and transaction processing 53,500 1,518,063
SANYO SHINPAN (JAPAN)
Consumer finance company 33,000 2,295,926
-----------
8,562,176
-----------
INDUSTRIAL GOODS AND SERVICES 1.3%
ABB (SWITZERLAND)
Manufacturer of heavy equipment
for electric power generation and
distribution 1,626 1,956,169
-----------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT 5.3%
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 169,950 2,316,212
DOMNICK HUNTER GROUP (UK)
Manufacturer of filtration,
purification, and separation
products 195,000 1,169,622
KALMAR INDUSTRIES (SWEDEN)
Manufacturer of heavy-lift trucks 83,600 1,515,609
LARSEN & TOUBRO (GDRS) (INDIA)
Producer of a range of engineering
equipment 76,000 1,434,120
SIEBE (UK)
Designer and manufacturer of
control devices and process
control technology 115,000 1,490,472
-----------
7,926,035
-----------
- ----------
See footnotes on page 23.
----
13
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
MEDIA 3.7%
CAPITAL RADIO (UK)
Local commercial radio broadcaster 100,000 $ 1,032,329
IBC GROUP (UK)
Publisher and organizer of seminars
and conferences 145,000 716,753
NIPPON TELEVISION NETWORK (JAPAN)
Telecaster with nationwide
network NNN 6,200 1,944,055
TELEVISION BROADCASTING (HONG KONG)
TV broadcasting; program production;
rental of films; and advertising 444,000 1,779,375
-----------
5,472,512
-----------
PAPER AND PACKAGING 1.3%
BOBST (SWITZERLAND)
Manufacturer of machinery for the
paper and package industries 1,270 1,940,491
-----------
PUBLISHING 3.1%
ELSEVIER (NETHERLANDS)
Global printer and publisher of
professional trade journals and
magazines 122,250 1,841,351
SINGAPORE PRESS HOLDING (SINGAPORE)
Newspaper publisher, printer, and
distributor 78,000 1,475,676
WACE GROUP (UK)
Provider of pre-press and printing
services 300,000 1,216,189
-----------
4,533,216
-----------
RESOURCES 2.1%
GENCOR (SOUTH AFRICA)
Holding company with interests in
gold, platinum, and coal mining 367,000 1,470,543
WESTERN MINING (AUSTRALIA)
Mineral and petroleum producer 232,500 1,697,060
-----------
3,167,603
-----------
RESTAURANTS 0.9%
PIZZA EXPRESS (UK)
Restaurant operator in the UK 245,000 1,284,911
-----------
RETAILING 6.6%
HOME DEPOT (US)
Retailer of home improvement
products and building materials 31,700 1,503,769
JOSHIN DENKI (JAPAN)
Budget electrical retailer 173,000 2,341,291
LOJAS AMERICANAS (ADRS) (BRAZIL)
Retailer 48,000 1,112,674
SHIMACHU (JAPAN)
Furniture retailer 77,000 2,605,194
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer
of jewelry 46,000 2,297,260
-----------
9,860,188
-----------
SUPPORT SERVICES 3.8%
RENTOKIL (UK)
Provider of commercial services
such as pest control and office
maintenance 265,000 1,527,584
SECOM (JAPAN)
Security service pioneer 34,000 2,397,903
SITA (FRANCE)
Collection, cleaning, and waste
recycling services 7,650 1,657,253
-----------
5,582,740
-----------
TELECOMMUNICATIONS 5.1%
DDI (JAPAN)
Long distance and mobile
telecommunications services 295 2,527,567
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Global telecommunications
equipment and systems, wired
and mobile 97,950 1,985,102
TELEBRAS (ADRS) (BRAZIL)
Telecommunications 22,000 1,191,791
WORLDCOM* (US)
Provider of interstate long distance
telecommunications services 40,600 1,905,663
-----------
7,610,123
-----------
TRANSPORTATION 3.5%
KOBENHAUNS LUFTHAVNE (DENMARK)
Operator of Copenhagen airport 21,920 2,043,909
LUFTHANSA (GERMANY)
Airline services worldwide;
operator of Penta hotels 11,450 1,814,373
METACORP BERHAD (MALAYSIA)
Constructor and operator of
toll roads 470,000 1,338,226
-----------
5,196,508
-----------
TOTAL INVESTMENTS 94.4%
(Cost $125,340,757) 140,360,230
OTHER ASSETS LESS LIABILITIES 5.6% 8,254,593
------------
NET ASSETS 100.0% $148,614,823
============
- -------------
See footnotes on page 23.
- ----
14
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1996
SHARES VALUE
------ -----
COMMON STOCKS 90.2%
ADVERTISING 1.6%
ASATSU (JAPAN)
Advertising agency 47,000 $ 2,060,519
HERITAGE MEDIA (CLASS A)* (US)
Broadcasting and in-store
advertising 55,000 2,110,625
KATZ MEDIA GROUP* (US)
Advertising broker 90,000 1,327,500
OUTDOOR SYSTEMS* (US)
Outdoor advertising such as
billboards 59,700 1,373,100
-----------
6,871,744
-----------
AUTOMOTIVE PARTS MANUFACTURING 3.5%
ECIA (FRANCE)
Manufacturer of automobile
components 4,575 654,836
FORSHEDA (SWEDEN)
Manufacturer of automobile
components 158,296 3,103,111
MONTUPET (FRANCE)
Manufacturer of automobile
components 15,129 2,487,360
NIPPON SEIKI (JAPAN)
Manufacturer of automobile
components 115,000 1,742,673
NOKIAN TYRES* (FINLAND)
Manufacturer of tires 235,090 2,819,495
SYLEA (FRANCE)
Manufacturer of automobile
components 42,120 3,845,385
-----------
14,652,860
-----------
BUILDING MATERIALS 1.6%
GUJURAT AMBUJA CEMENT (GDSS) (INDIA)
Cement producer 126,000 1,543,500
MALAYAN CEMENT BERHAD (MALAYSIA)
Cement producer 526,000 1,307,828
MULIA INDUSTRINDO (INDONESIA)
Manufacturer of ceramic tiles
and glass 896,500 1,732,553
POLYPIPE (UK)
Manufacturer of plastic piping and
molded plastic products 745,000 2,144,457
-----------
6,728,338
-----------
BUSINESS SERVICES 4.6%
BISYS GROUP* (US)
Data processing service for banks 50,000 1,900,000
CORT BUSINESS SERVICES* (US)
Rentor of furniture 90,000 1,597,500
DATA PROCESSING RESOURCES* (US)
Information technology staffing
services 20,000 497,500
HOKKAI CAN (JAPAN)
Can producer for the food industry 77,000 653,867
IBC GROUP (UK)
Business communications 600,000 2,965,874
NU-KOTE HOLDINGS (CLASS A)* (US)
Manufacturer of products for
printing equipment 100,000 1,775,000
SCB COMPUTER TECHNOLOGY* (US)
Provider of information technology
services 43,800 1,144,275
SIG SCHWEITZ INDUSTRIE (SWITZERLAND)
Industrial conglomerate 3,200 3,628,468
SITEL* (US)
Telemarketer 30,000 1,672,500
SKILLED ENGINEERING (AUSTRALIA)
Provider of personnel placement
and outsourcing services 602,000 1,609,911
SUNGARD DATA SYSTEMS* (US)
Computer services aimed at
disaster recovery 48,200 1,614,700
-----------
19,059,595
-----------
CAPITAL GOODS 1.2%
FUSION SYSTEMS* (US)
Manufacturer of ultraviolet
curing systems 70,000 2,003,750
PHOTON DYNAMICS* (US)
Semiconductor test equipment 100,000 968,750
TSUBAKIMOTO PRECISION (JAPAN)
Manufacturer of ball bearings 159,000 2,121,515
-----------
5,094,015
-----------
CHEMICALS 2.2%
APPLIED EXTRUSION TECHNOLOGIES* (US)
Polypropylene film products 200,000 2,800,000
CHEMICAL COMPANY OF MALAYSIA (MALAYSIA)
Producer of industrial chemicals
and pharmaceuticals 213,000 679,078
HOGANAS (SERIES B) (SWEDEN)
Producer of metal powders 95,900 3,180,364
TOSHIBA CHEMICAL (JAPAN)
Producer of synthetic resin molded
products and insulating materials 37,000 320,896
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 332,000 2,056,707
-----------
9,037,045
-----------
COMPUTER SOFTWARE 3.9%
CMG (UK)
Computer applications management 245,300 2,014,753
DENDRITE INTERNATIONAL* (US)
Sales management and software 160,000 3,860,000
IMNET SYSTEMS* (US)
Electronic information and
document management systems 100,000 3,337,500
PARITY (UK)
Software and consultancy 695,000 2,513,759
SYKES ENTERPRISES (US)
Computer related consulting
services 25,000 903,125
SYNOPSYS* (US)
Integrated circuit design software 70,000 2,896,250
TRANSITION SYSTEMS (US)
Developer of computer software 31,000 747,875
-----------
16,273,262
-----------
- -----------
See footnotes on page 23.
----
15
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
CONSTRUCTION AND PROPERTY 5.4%
ASAS DUNIA BERHAD (MALAYSIA)
Property developer 188,000 $ 799,166
ASHSTEAD GROUP (UK)
Equipment rentor for the
construction sector 1,000,000 2,893,536
BAU HOLDINGS (AUSTRIA)
Construction and civil engineering 19,696 1,170,911
BAU HOLDINGS (VOTING PREFERENCE SHARES)
(AUSTRIA)
Construction and civil engineering 41,400 1,949,728
BUKIT SEMBAWANG ESTATES (SINGAPORE)
Property developer 67,000 1,820,341
DANSKE TRAELASTKOMPAGNI (DENMARK)
Timber supply company 47,100 3,392,439
HIGASHI NIHON HOUSE (JAPAN)
House builder 112,000 1,814,629
KAMPA-HAUS (GERMANY)
Residential construction 68,552 2,396,532
MITSUI HOME (JAPAN)
House builder 114,000 1,901,358
NEW ASIA REALTY (HONG KONG)
Holding company with interests in
properties and real estate 501,000 1,677,492
THORKILD KRISTENSE (DENMARK)
Property development 12,100 711,825
TILBURY DOUGLAS (UK)
Small contractor in the UK 260,000 1,912,145
-----------
22,440,102
-----------
CONSUMER GOODS AND SERVICES 5.1%
CANANDAIGUA WINE (CLASS A)* (US)
Wine, imported beer, and
distilled spirits 125,000 3,812,500
CHILDTIME LEARNING CENTERS* (US)
Provider of child care services 225,000 2,179,688
EKORNES (NORWAY)
Manufacturer of home furnishings 149,700 2,028,502
FUJITSU BUSINESS SYSTEMS (JAPAN)
Distributor of computer equipment 61,000 1,592,947
LE CREUSET (FRANCE)
Manufacturer of quality cookware 40,000 105,493
MARIEBERG TIDNINGS (SERIES A) (SWEDEN)
Diversified holding company 82,700 1,938,110
OAKLEY* (US)
Manufacturer of designer sunglasses
and goggles 86,000 3,956,000
OPTA FOOD INGREDIENTS* (US)
Manufacturer of food additives 190,000 2,695,625
ST. JOHN KNITS (US)
Apparel manufacturer 35,000 2,078,125
SORINI (INDONESIA)
Manufacturer of Sorbitol and
Maltodextrin, etc. 150,000 824,565
-----------
21,211,555
-----------
DRUGS AND HEALTH CARE 1.4%
DARYA VARIA LAB (INDONESIA)
Manufacturer of generic
pharmaceuticals 300,500 672,689
DARYA VARIA LAB (RIGHTS)* (INDONESIA)
Manufacturer of generic
pharmaceuticals 36,060 15
HORIZON MENTAL HEALTH
MANAGEMENT* (US)
Psychiatric care provider 100,000 2,100,000
TOTAL RENAL CARE HOLDINGS* (US)
Provider of dialysis services 55,000 2,103,750
TOWA PHARMACEUTICAL (JAPAN)
Large generic drug wholesaler 39,000 1,037,026
-----------
5,913,480
-----------
ELECTRIC UTILITIES 1.1%
CALENERGY* (US)
Developer of geothermal
energy power 150,000 3,900,000
CENTRAL COSTANERA (ADSS)+ (ARGENTINA)
Electrical power generation
company 20,000 685,000
-----------
4,585,000
-----------
ELECTRICAL DISTRIBUTION 1.4%
ABACUS POLAR (UK)
Electronic component distributor 355,000 1,498,008
BARNETT* (US)
Distributor of plumbing, electrical,
and hardware products 40,000 960,000
REXEL (FRANCE)
European electrical distributor 7,155 1,714,709
TRIFAST (UK)
Manufacturer and distributor of
fasteners for the electronics
industry 304,000 1,800,503
-----------
5,973,220
-----------
ELECTRONICS 6.2%
BERG ELECTRONICS* (US)
Manufacturer of electronic
connectors 50,000 1,331,250
BMC INDUSTRIES (US)
Television aperture masks 50,000 1,337,500
ELECTRO SCIENTIFIC INDUSTRIES* (US)
Laser trimming systems, memory
repair systems, and test and
production equipment 120,000 2,880,000
ENPLAS (JAPAN)
Manufacturer of electronic
components and engineering plastics 34,000 793,900
FAIREY GROUP (UK)
Electrical and electronic engineer 175,000 1,743,280
FOSTER ELECTRIC (JAPAN)
Speaker manufacturer with
worldwide production 122,000 867,401
HORIBA INSTRUMENTS (JAPAN)
Manufacturer of instruments
and analyzers 165,000 2,343,102
ISA INTERNATIONAL (UK)
Supplier of computer
consumables 886,003 2,296,631
- ------------
See footnotes on page 23.
- ----
16
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
ELECTRONICS (continued)
LOJACK* (US)
Manufacturer of stolen vehicle
tracking devices 276,000 $ 3,484,500
OTRA (NETHERLANDS)
Holding company for various technical
product wholesale companies 145,050 3,598,940
RYOYO ELECTRO (JAPAN)
Distribution of electronic goods 89,000 2,281,725
STRATACOM (US)
Manufacturer of wide area network
computer systems 55,000 2,863,438
-----------
25,821,667
-----------
FINANCIAL SERVICES 4.9%
CENTRALE POUR L'INDUSTRIE (FRANCE)
Diversified holding company with
interests in financial services
and insurance 5,743 374,684
FINNVEDEN (SERIES B)* (SWEDEN)
Industrial conglomerate 207,550 2,202,576
FOKUS BANK (NORWAY)
Provider of banking services 647,000 3,487,154
ICHIYOSHI SECURITIES (JAPAN)
Kansai-based securities business 299,000 2,194,234
JAYHAWK ACCEPTANCE* (US)
Consumer finance company 125,000 1,640,625
MANHATTAN CARD (HONG KONG)
Operator of credit card business 3,522,000 2,094,450
NEWCOURT CREDIT GROUP (CANADA)
Financial services company 50,000 1,075,348
PROTECTOR FORSIKRING* (NORWAY)
Provider of non-life insurance
policies 44,800 1,145,911
ROOSEVELT FINANCIAL GROUP (US)
Largest St. Louis-based savings
institution 60,000 1,155,000
T. ROWE PRICE (US)
Investment advisor to the
T. Rowe Price mutual funds and
institutional money managers 30,000 1,680,000
UNIONAMERICA HOLDINGS (ADRS) (UK)
Provider of property and casualty
reinsurance 150,000 2,475,000
WORLD ACCEPTANCE* (US)
Small-loan consumer financier 90,000 905,625
-----------
20,430,607
-----------
INDUSTRIAL GOODS AND SERVICES 2.7%
ANGPANNEFORENINGEN (CLASS B) (SWEDEN)
Engineering consultancy 110,500 1,987,000
FINNING (CANADA)
Lessor of construction equipment 40,000 651,815
INDUSTRIA MACCHINE AUTOMATION (ITALY)
Packaging machinery 525,000 3,698,071
TECHNIP* (FRANCE)
Engineering contractors 33,390 3,002,517
VISUAL ACTION HOLDINGS (UK)
Rentor of cameras and related
equipment 500,000 1,936,559
-----------
11,275,962
-----------
LEISURE AND HOTELS 3.4%
ALLIED LEISURE (UK)
UK's largest bowling alley
operator 2,350,000 1,629,121
ANCHOR GAMING* (US)
Operator of gaming machines in
Colorado and Nevada 39,000 1,725,750
GRAND CASINO* (US)
Developer of casinos 75,000 2,428,125
GTECH HOLDINGS* (US)
Operator of state and local
lottery systems 110,000 3,121,250
STRATOSPHERE* (US)
Operator of resort and casino
hotels 100,000 1,050,000
SUN INTERNATIONAL HOTELS* (US)
Operator of resort and casino
hotels 100,000 4,275,000
-----------
14,229,246
-----------
MANUFACTURING 12.1%
AGCO (US)
Manufacturer of farm equipment 66,000 1,666,500
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 163,170 2,223,808
BRITISH POLYTHENE INDUSTRIES (UK)
Manufacturer and converter of
polythene 165,000 1,909,734
BT INDUSTRIES (SWEDEN)
Manufacturer of forklifts 231,000 3,013,221
COBHAM (UK)
High integrity engineering 175,000 1,566,578
DANTO (JAPAN)
Manufacturer of wall and
floor tiles 156,000 2,022,016
DAVID BROWN GROUP (UK)
Diversified engineering company;
manufacturer of transmission
equipment and pumps 687,332 2,361,724
DOMNICK HUNTER GROUP (UK)
Manufacturer of filtration,
purification, and separation
products 412,100 2,471,800
FUTURIS (AUSTRALIA)
Mini-conglomerate with interests
in building materials, automobile
components, and financial
services 1,453,282 1,691,757
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 58,000 2,072,909
HOKUSHIN (JAPAN)
Producer of fiber board 179,000 2,166,595
INDUSTRIE NATUZZI (ADRS)*+ (ITALY)
Manufacturer of leather furniture 21,240 1,104,480
IRO* (SWEDEN)
Manufacturer of textile machinery 278,730 2,670,379
KALMAR INDUSTRIES (SWEDEN)
Manufacturer of heavy-lift trucks 108,900 1,974,280
LASSILA & TIKANOJA (FINLAND)
Industrial conglomerate 58,200 2,358,785
LEM HOLDINGS (SWITZERLAND)
Manufacturer of electrical
components 5,495 1,701,307
NAMURA SHIPBUILDING (JAPAN)
Shipbuilder 216,000 1,307,219
- -------------
See footnotes on page 23.
----
17
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
MANUFACTURING (CONTINUED)
NICHICON (JAPAN)
Manufacturer of electrical
equipment 149,000 $ 2,470,908
PLETTAC (GERMANY)
Manufacturer of scaffolding,
lightweight construction sheds,
and related products 14,790 3,343,902
SAMAS GROEP (NETHERLANDS)
Manufacturer of office furniture 71,548 2,589,746
SODICK (JAPAN)
Manufacturer of electro dischargers 159,000 2,030,593
STOVES* (UK)
Manufacturer of ovens 417,500 1,610,735
TSUDAKOMA (JAPAN)
Manufacturer of air-jet looms 282,000 2,203,860
VALMET (FINLAND)
Manufacturer of paper and pulp
machinery 25,710 356,194
WELLINGTON HOLDINGS (UK)
Producer of sealing systems and
rubber compounds 350,000 1,350,317
YUE YUEN INDUSTRIAL HOLDINGS
(HONG KONG)
Manufacturer of athletic
footwear 1,630,000 396,158
-----------
50,635,505
-----------
MEDIA 2.6%
AAMULEHTI YHTYMAE (FINLAND)
Publisher 14,050 363,158
AUDIOFINA* (LUXEMBOURG)
Radio and television broadcasting 310 16,002
CAPITAL RADIO (UK)
Commercial radio station in
London 312,700 3,228,094
GWR GROUP (UK)
Local radio operator 440,000 1,432,300
HODDER HEADLINE (UK)
Book publisher and distributor 100,000 388,819
SOUTH CHINA MORNING POST (HONG KONG)
English language newspaper 1,808,000 1,227,102
TRINITY INTERNATIONAL HOLDINGS (UK)
Publisher of regional newspapers
in the UK, US, and Canada 300,000 1,962,179
UNITED VIDEO SATELLITE GROUP
(CLASS A)* (US)
Satellite-delivered program
services 90,000 2,047,500
-----------
10,665,154
-----------
MEDICAL PRODUCTS AND TECHNOLOGY 2.7%
CNS* (US)
Manufacturer of nasal breathing
devices 25,000 490,625
HITACHI MEDICAL (JAPAN)
Manufacturer of medical equipment 112,000 1,889,350
IDX SYSTEMS* (US)
Health care information systems 125,000 4,625,000
NCS HEALTHCARE (CLASS A)* (US)
Health care facility and pharmacy
services 105,000 3,478,125
PHYSICAL SUPPORT SYSTEMS* (US)
Health care information systems 40,000 985,000
-----------
11,468,100
-----------
METALS 1.5%
NAKAYAMA STEEL WORKS (JAPAN)
Small blast furnace company,
mainly for the housing industry 309,000 2,456,097
SANYO SPECIAL STEEL (JAPAN)
Steel manufacturer 427,000 2,026,648
SUMITOMO SITIX (JAPAN)
Producer of silicon wafers 85,000 1,976,650
-----------
6,459,395
-----------
OIL SERVICES 0.7%
CHESAPEAKE ENERGY* (US)
Developer and producer of oil
and gas 30,000 2,122,500
ENSERV* (CANADA)
Diversified oil field services
company 80,000 1,027,636
-----------
3,150,136
-----------
PAPER AND PRINTING 3.5%
APPLIED GRAPHICS TECHNOLOGIES (US)
Provider of digital pre-press
services 53,000 718,813
BOBST (SWITZERLAND)
Manufacturer of machinery for the
paper and package industries 1,969 3,008,524
MUNSKJO (SWEDEN)
Specialty paper producer 400,000 3,154,202
PLM (SWEDEN)
Manufacturer of food packaging 193,600 3,024,732
RENGO (JAPAN)
Manufacturer of paper board 246,000 1,852,180
WACE GROUP (UK)
Provider of pre-press and printing
services 700,000 2,837,775
-----------
14,596,226
-----------
RESOURCES 0.9%
NITTETSU MINING (JAPAN)
Open cast coal miner 184,000 2,034,215
QNI (AUSTRALIA)
Producer of nickel and cobalt 640,000 1,585,685
-----------
3,619,900
-----------
RESTAURANTS 2.6%
AIYA (JAPAN)
Operator of restaurant chain 127,000 1,997,141
KENTUCKY FRIED CHICKEN (JAPAN)
Fast food restaurants 109,000 2,285,442
KFC HOLDINGS MALAYSIA (MALAYSIA)
Fast food restaurants 130,000 782,002
PIZZA EXPRESS (UK)
Operator of restaurant chain 625,000 3,277,834
SAGAMI CHAIN (JAPAN)
Noodle restaurant chain 130,200 2,308,048
-----------
10,650,467
-----------
RETAILING 6.4%
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 35,000 1,097,451
CLINTON CARDS (UK)
Retailer of greeting cards 628,473 1,420,710
- -----------
See footnotes on page 23.
- ----
18
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
RETAILING (CONTINUED)
COURTS (SINGAPORE)
Retailer of household furniture 806,000 $1,324,225
D'IETEREN TRADING (BELGIUM)
Rentor of automobiles 30,815 3,763,677
FOTOLABO CLUB (SWITZERLAND)
Film processor 5,510 2,525,694
FROST GROUP (UK)
Gas station chain 355,633 696,744
HAMLEY'S (UK)
Toy store 64,000 346,260
HORNBACH BAUMARKT (GERMANY)
Large home improvement and
garden center retailer 58,090 2,205,397
JARDINE INTERNATIONAL MOTOR HOLDINGS
(HONG KONG)
Holding company for Jardine
Matheson Group 1,076,000 1,391,026
JEAN PASCALE (GERMANY)
Clothing retailer 45,656 1,294,186
JOSHIN DENKI (JAPAN)
Budget electrical retailer 81,000 1,096,211
LOJAS ARAPUA (GDRS)*+ (BRAZIL)
Specialist electrical retailers 50,000 543,750
PET CITY HOLDINGS (UK)
Retailer of pet products 270,000 1,688,649
PRODEGA (SWITZERLAND)
Food retailer 4,450 1,395,657
SHIMACHU (JAPAN)
Furniture retailer 32,000 1,082,678
SIAM MAKRO PUBLIC (THAILAND)
Operator of wholesale store 221,000 1,067,696
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer of jewelry 37,400 1,867,772
XEBIO (JAPAN)
Retailer of outdoor clothing 51,000 1,895,640
-----------
26,703,423
-----------
TECHNOLOGY 2.4%
ASYST TECHNOLOGIES* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 90,000 3,138,750
CREDENCE SYSTEMS* (US)
Manufacturer of semiconductor
test equipment 90,000 1,946,250
GETRONICS (NETHERLANDS)
Computer systems integration
house and consultant 40,104 2,786,138
OPAL* (US)
Semiconductor inspection equipment 150,000 2,203,125
-----------
10,074,263
-----------
PRIN.AMT.
OR SHARES
---------
TELECOMMUNICATIONS 0.8%
ARCH COMMUNICATIONS GROUP* (US)
Nationwide paging services 65,000shs.1,543,750
KVH INDUSTRIES* (US)
Digital navigation systems and
satellite communications 175,000 1,739,063
------------
3,282,813
------------
TRANSPORTATION 3.0%
COMFORT (SINGAPORE)
Taxi operator 1,394,000 1,269,075
DAWSON GROUP (UK)
Rentor of commercial vehicles 400,000 1,308,119
HUB GROUP* (CLASS A) (US)
Freight transportation services 150,000 3,525,000
IINO KAIUN* (JAPAN)
Shipping company 354,000 2,051,294
METACORP BERHAD (MALAYSIA)
Constructor and operator of
toll roads 210,000 597,931
RUBIS (FRANCE)
Chemical storage and distribution
company 78,810 2,957,280
TONAMI TRANSPORT (JAPAN)
Regional transport company 117,000 836,312
------------
12,545,011
------------
VETERINARY PRODUCTS 0.8%
VIRBAC (FRANCE)
Manufacturer of animal drugs
and veterinary products 24,972 3,453,574
------------
TOTAL COMMON STOCKS
(Cost $325,238,808) 376,901,665
------------
CONVERTIBLE BONDS 0.1%
(Cost $519,069)
PUBLISHING 0.1%
GRUPO ANAYA (SPAIN)
7%, DUE 3/18/1998
Publishing company 72,000,000++ 480,471
------------
TOTAL INVESTMENTS 90.3%
(Cost $325,757,877) 377,382,136
OTHER ASSETS LESS LIABILITIES 9.7% 40,360,441
------------
NET ASSETS 100.0% $417,742,577
============
- ----------
See footnotes on page 23.
----
19
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1996
SHARES VALUE
------ -----
COMMON STOCKS 88.3%
BROADCASTING 0.4%
AUSTRALIS MEDIA* (AUSTRALIA)
Satellite broadcasting 300,000 $ 134,500
BELL CABLEMEDIA ADRS* (UK)
Cable television operator 170,000 2,890,000
-----------
3,024,500
-----------
COMPUTER AND BUSINESS SERVICES 2.2%
ADMIRAL (UK)
Computer software and services 140,000 2,622,568
BTG (UK)
Technology transfer company
assisting in the commercialization
of technological inventions 150,000 3,289,136
LOGICA (UK)
Computer services 1,071,000 9,216,229
UNILOG (FRANCE)
Computer consultants 17,241 1,827,479
-----------
16,955,412
-----------
COMPUTER HARDWARE/PERIPHERALS 11.3%
ACORN COMPUTER* (UK)
Leading UK supplier to the
educational computer market 825,000 3,245,055
ASTEC (UK)
Designer and manufacturer of
power conversion products and
electronic components 2,500,000 5,236,999
AVAL DATA (JAPAN)
Manufacturer of computer
peripherals 139,000 2,424,304
CANON (JAPAN)
Manufacturer of printers and
photocopiers 300,000 5,947,105
CREATIVE TECHNOLOGY* (SINGAPORE)
Sound and video multimedia
products 225,000 1,659,375
DELL COMPUTER* (US)
Developer and manufacturer of
IBM-compatible personal
computers 150,000 6,900,000
ELECTRONICS FOR IMAGING* (US)
Color copier servers 150,000 9,206,250
EMC* (US)
Manufacturer of enterprise
storage devices 500,000 10,250,000
KOMAG* (US)
Manufacturer of thin film
magnetic media for hard-disk drives 330,000 11,096,250
LEXMARK INTERNATIONAL GROUP* (US)
Manufacturer of laser and
ink jet printers 250,000 5,406,250
LINX PRINTING TECHNOLOGY (UK)
Manufacturer of ink jet printers 845,000 1,540,883
MICROCOM* (US)
Manufacturer of modems 100,000 2,450,000
PSION (UK)
Manufacturer of hand-held
computers 435,000 7,506,239
SEAGATE TECHNOLOGY* (US)
Global hard-disk drive supplier 160,000 9,280,000
TEKTRONIX (US)
Manufacturer of color printers,
digital video storage, and
editing systems 160,000 6,340,000
-----------
88,488,710
-----------
COMPUTER SOFTWARE 14.1%
ALTRAN TECHNOLOGIES (FRANCE)
Computer services 15,000 4,050,290
CADENCE DESIGN SYSTEMS* (US)
Software for computer-aided
engineering 100,000 5,225,000
CMG (UK)
Information technology consulting 853,700 7,011,799
CODA GROUP (UK)
Developer and supplier of financial
accounting software 920,000 3,466,215
CSK (JAPAN)
Information services company 150,000 4,646,176
DATA SYSTEMS & SOFTWARE* (US)
Real-time systems integrator
and consultants 100,000 821,875
EIDOS (UK)
Developer of entertainment software 50,000 620,151
HUMMINGBIRD COMMUNICATIONS (CANADA)
X-Windows networking software 150,000 6,300,000
INFORMIX* (US)
Designer, manufacturer, and supporter
of database management systems 200,000 5,262,500
LEARMONTH & BURCHETT MANAGEMENT
SYSTEMS* (UK)
Supplier of computer-aided
software and engineering tools 600,000 1,745,164
MENTOR GRAPHICS* (US)
Computer-aided engineering systems 500,000 7,968,750
MICRO FOCUS (UK)
Electronic design automation
software 58,300 929,570
MICROSOFT* (US)
Microcomputer software 60,000 6,791,250
MISYS (UK)
Provider of software products and
services for the financial services
industry 300,100 3,731,192
NETWORK GENERAL* (US)
Local area network software 150,000 6,637,500
ORACLE SYSTEMS* (US)
Database management software
systems 187,500 6,316,406
PARAMETRIC TECHNOLOGY* (US)
Developer of mechanical
design software 200,000 8,037,500
- ----------
See footnotes on page 23.
- ----
20
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
COMPUTER SOFTWARE (CONTINUED)
PC DOCS GROUP INTERNATIONAL* (CANADA)
Software products 151,000 $ 3,114,375
PERSONA (UK)
Networking distribution 1,669,914 6,140,611
SLIGOS (FRANCE)
Computer services 30,000 2,883,946
SUPERSCAPE (UK)
Developer of virtual reality
software for arcade games 35,000 321,755
SYNOPSYS* (US)
Integrated circuit design software 300,000 12,412,500
3DO* (US)
Developer of video game software
and game platforms 700,000 6,300,000
-----------
110,734,525
-----------
CONTRACT MANUFACTURING 0.7%
HANA MICROELECTRONICS (THAILAND)
Contract manufacturer 70,000 385,308
RAINFORD GROUP* (UK)
Contract manufacturer
specializing in the cellular
base station market 372,519 1,549,477
VENTURE MANUFACTURING* (SINGAPORE)
Contract manufacturer 1,112,000 3,796,302
-----------
5,731,087
-----------
DISTRIBUTORS 1.3%
ABACUS POLAR (UK)
Distributor of electronic
components 1,240,000 5,232,478
ELECTROCOMPONENTS (UK)
Distributor of electronic
components 800,000 4,810,504
-----------
10,042,982
-----------
ELECTRONICS 11.1%
ADAPTEC* (US)
Manufacturer of computer
data flow systems 100,000 5,762,500
ELECTROSTAR (US)
Manufacturer of rigid printed
circuit boards 500,000 6,312,500
EUROTHERM (UK)
Manufacturer of electronic
equipment 34,500 319,238
GENERAL ELECTRIC (UK)
Supplier of diversified
electronics 850,000 4,592,358
HIROSE ELECTRONICS (JAPAN)
Manufacturer of specialized
connectors 68,200 4,198,923
HITACHI (JAPAN)
Manufacturer of
diversified electronics 416,000 4,480,152
KYOCERA (JAPAN)
Supplier of semiconductor
packaging; capacitors;
and cellular components 65,000 4,881,582
MURATA MANUFACTURING (JAPAN)
Manufacturer of capacitors 110,000 4,256,374
PCD* (US)
Designer of electronic connectors 300,000 4,125,000
PHILIPS ELECTRONICS (NETHERLANDS)
Consumer and industrial
electronics 98,000 3,461,381
SAES GETTERS DI RISP (ITALY)
Market leader in vacuum maintenance
technology and gas purification 100,000 1,985,112
SAES GETTERS SPA (ITALY)
Market leader in vacuum maintenance
technology and gas purification 55,000 1,391,179
SAMSUNG ELECTRONICS (GDRS)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 18,814 790,188
SAMSUNG ELECTRONICS (GDSS)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 127,430 5,352,060
SAMSUNG ELECTRONICS (GDRS)
(VOTING)*+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 564 43,710
SAMSUNG ELECTRONICS (GDSS)
(VOTING)*+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 1,872 147,420
SECOM (JAPAN)
Manufacturer of electronic
instrumentation 86,000 6,065,285
SPEEDFAM INTERNATIONAL* (US)
Chemical mechanical polishing
equipment 400,000 5,900,000
TDK (JAPAN)
Leader in magnetic tapes and
heads for disk drives 100,000 5,708,840
TOSHIBA (JAPAN)
Supplier of diversified electronics 440,000 3,413,486
UNITECH (UK)
Manufacturer of power supplies 462,200 4,834,116
VARITRONIX INTERNATIONAL (HONG KONG)
Manufacturer of LCDs 1,070,000 1,964,242
VICOR* (US)
Manufacturer of modular
power converters 320,000 4,860,000
YAGEO (GDRS)*+ (TAIWAN)
Manufacturer of passive
components 276,777 2,560,187
-----------
87,405,833
-----------
INDUSTRIAL GOODS AND SERVICES 1.3%
CELSIUS INDUSTRIES (SERIES B) (SWEDEN)
Systems integrator 71,000 1,925,537
FUJI MACHINE MANUFACTURING (JAPAN)
SMT equipment 110,000 3,606,386
FUSION SYSTEMS* (US)
Manufacturer of ultraviolet
curing systems 40,000 1,145,000
- -----------
See footnotes on page 23.
----
21
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
INDUSTRIAL GOODS AND SERVICES (CONTINUED)
SHINKAWA (JAPAN)
Producer of wire bonders which are
integral in the manufacture of
integrated circuits 31,500 $ 882,630
SILICONWARE PRECISION INDUSTRIES (GDRS)*
(TAIWAN)
IC packaging 178,000 2,403,000
-----------
9,962,553
-----------
MEDICAL PRODUCTS AND TECHNOLOGY 1.7%
COCHLEAR (AUSTRALIA)
Developer of hearing aids 2,045,000 4,986,334
FRESENIUS (GERMANY)
Dialysis equipment 45,000 6,924,887
ML LABS (UK)
Pharmaceuticals 263,000 1,625,052
TOWA PHARMACEUTICAL (JAPAN)
Supplier of generic pharmaceuticals 3,300 87,748
-----------
13,624,021
-----------
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE 9.6%
CIDCO* (US)
Telephone call identification
devices 200,000 7,125,000
CISCO SYSTEMS* (US)
Computer network routers 50,000 2,596,875
COLONIAL DATA TECHNOLOGIES* (US)
Manufacturer of telephone call
identifiers 220,000 5,005,000
CRAY ELECTRONICS HOLDINGS (UK)
Data communications; networking
and software systems 2,450,000 1,772,291
ECI TELECOMMUNICATIONS (ISRAEL)
Electronic telecommunications
systems 300,000 7,875,000
L.M. ERICSSON TELEFON (SERIES B)
(SWEDEN)
Manufacturer of telecom-
munications equipment 256,700 5,202,407
GLENAYRE TECHNOLOGIES* (US)
Manufacturer of paging
infrastructure equipment 240,000 11,160,000
MADGE NETWORKS (NETHERLANDS)
Worldwide supplier of switched
networking solutions 200,000 5,912,500
STRATACOM* (US)
Manufacturer of wide area
computer networks 200,000 10,412,500
TELEMETRIX (UK)
Networking components 1,010,000 1,628,669
3COM* (US)
Supplier of adapter cards, hubs,
and routers for local area
computer networks 200,000 9,212,500
U.S. ROBOTICS* (US)
Modems and remote access routers 50,000 7,831,250
-----------
75,733,992
-----------
SEMICONDUCTORS 17.0%
ALTERA* (US)
Manufacturer of programmable
logic devices 150,000 7,921,875
ATMEL* (US)
Non-volatile memory circuits 300,000 11,981,250
INFORMATION STORAGE DEVICES* (US)
Audio recording circuits 600,000 6,262,500
INTEL (US)
Microprocessors and FLASH
memory circuits 120,000 8,137,500
INTERNATIONAL RECTIFIER* (US)
Power semiconductors 350,000 7,875,000
LATTICE SEMICONDUCTOR* (US)
Programmable logic devices 200,000 6,537,500
LINEAR TECHNOLOGY (US)
Producer of high-performance
analog semiconductors 125,000 4,312,500
LSI LOGIC* (US)
Manufacturer of complex
logic circuits 300,000 10,800,000
MAXIM INTEGRATED PRODUCTS* (US)
Linear and mixed-signal integrated
circuits 250,000 8,609,375
MICROCHIP TECHNOLOGY* (US)
Field programmable
microcontrollers 300,000 7,668,750
MIMASU SEMICONDUCTOR (JAPAN)
Manufacturer of silicon wafers 150,000 3,716,941
NEC (JAPAN)
Manufacturer of diversified
electronics 413,000 5,235,073
OAK TECHNOLOGY* (US)
Video and CD-ROM controller
circuits 500,000 8,968,750
ROHM (JAPAN)
Producer of custom linear
integrated circuits 82,000 5,204,861
S3* (US)
Supplier of multimedia acceleration
solution for PCs 500,000 7,125,000
TOWER SEMICONDUCTOR* (ISRAEL)
Semiconductor foundry services 350,000 5,600,000
XILINX* (US)
Field programmable gate arrays 225,000 8,310,937
ZILOG* (US)
Manufacturer of microprocessors
and microcontrollers 250,000 9,406,250
-----------
133,674,062
-----------
SEMICONDUCTOR CAPITAL EQUIPMENT 9.3%
ASM PACIFIC TECHNOLOGY (HONG KONG)
Manufacturer of semiconductor
production equipment 260,000 255,451
BROOKS AUTOMATION* (US)
Systems and modules for
semiconductor manufacturing 70,000 1,032,500
CREDENCE SYSTEMS* (US)
Automated semiconductor test
equipment 250,000 5,406,250
- -------------
See footnotes on page 23.
- ----
22
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1996
SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT (CONTINUED)
ETEC SYSTEMS* (US)
Photomask manufacturing systems 175,000 $ 4,320,313
KLA INSTRUMENTS* (US)
Wafer inspection devices 350,000 10,150,000
LAM RESEARCH* (US)
Manufacturer of plasma etching
equipment 200,000 8,100,000
NOVELLUS SYSTEMS* (US)
Chemical vapor deposition equipment 150,000 8,175,000
OPAL* (ISRAEL)
Semiconductor inspection equipment 230,000 3,378,125
SEMITOOL* (US)
Wafer cleaning equipment 300,000 4,668,750
SUMITOMO SITIX (JAPAN)
Supplier of silicon wafers 45,000 1,046,462
TENCOR INSTRUMENTS* (US)
Wafer inspection devices 500,000 12,343,750
ULTRATECH STEPPER* (US)
Photolithography systems 275,000 7,150,000
VEECO INSTRUMENTS* (US)
Ion beam etching and surface
measurement systems 400,000 7,050,000
-----------
73,076,601
-----------
TELECOMMUNICATIONS 7.1%
ADVANCED INFORMATION SERVICES (THAILAND)
Cellular services operator 220,000 3,723,417
DDI (JAPAN)
Long distance and cellular
operator 800 6,854,420
HONG KONG TELECOMMUNICATIONS
(HONG KONG)
Provider of telecommunications
services 2,000,000 3,813,685
KOREA MOBILE TELECOM (GDSS) (KOREA)
Cellular services operator 60,000 3,416,100
MILLICOM INTERNATIONAL CELLULAR
(LUXEMBOURG)
Cellular services operator 50,000 2,362,500
OLIVETTI (ITALY)
Telecommunications; office and
computer equipment 13,000,000 8,324,662
PAKISTAN TELECOM (GDRS)* (PAKISTAN)
Telecommunications services 2,800 287,000
RACAL ELECTRONICS (UK)
Data communications 800,000 4,159,458
TELEBRAS (ADRS) (BRAZIL)
Telecommunications services 8,000 433,378
TELECOM ITALIA (ITALY)
Telecommunications services 2,700,000 5,506,764
TELECOM ITALIA MOBILE* (ITALY)
Cellular operator 3,650,000 8,063,716
TELE DANMARK (SERIES B) (DENMARK)
Telecommunications services 120,000 6,042,214
VODAFONE (UK)
Cellular operator 800,000 3,200,974
-----------
56,188,288
-----------
PRIN.AMT.
OR SHARES
---------
MISCELLANEOUS 1.2%
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 140,000shs.5,003,574
ISOTRON (UK)
Irradiation services 400,000 1,850,657
TRAFFIC MASTER* (UK)
Supplier of traffic
information services 450,000 2,373,604
-----------
9,227,835
-----------
TOTAL COMMON STOCKS
(Cost $644,560,950) 693,870,401
-----------
CONVERTIBLE BONDS 0.3%
(Cost $3,562,130)
SEMICONDUCTORS 0.3%
UNITED MICRO ELECTRONICS
(TAIWAN) 1 1/4%, 6/8/2004
Manufacturer of semiconductors $2,120,000 2,660,600
------------
PREFERRED STOCKS
(Cost $300,120)
COMMUNICATIONS INFRASTRUCTURE
NOKIA (FINLAND)
Manufacturer of cellular\
equipment 5,500shs. 196,638
------------
TOTAL INVESTMENTS 88.6%
(Cost $648,423,200) 696,727,639
OTHER ASSETS LESS LIABILITIES 11.4% 89,385,421
------------
NET ASSETS 100.0% $786,113,060
============
- -------------
* Non-income producing security.
++ 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.
----
23
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 1996
<TABLE>
<CAPTION>
GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND
------------ -------------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see portfolios of investments):
Common stocks .................................... $95,366,023 $140,360,230 $376,901,665 $693,870,401
Convertible bonds ................................ -- -- 480,471 2,660,600
Preferred stocks ................................. -- -- -- 196,638
----------- ----------- ----------- -----------
Total investments ................................... 95,366,023 140,360,230 377,382,136 696,727,639
Cash ................................................ 2,058,379 9,196,320 41,647,780 97,333,367
Receivable for securities sold ...................... 2,032,107 336,277 1,478,298 9,304,945
Receivable for Capital Stock sold ................... 461,802 1,566,467 12,158,217 3,485,757
Receivable for dividends and interest ............... 412,649 307,199 722,839 434,810
Unrealized appreciation on forward currency
contracts ........................................ 169,689 75,348 309,995 2,142
Expenses prepaid to shareholder service agent ....... 44,530 76,156 163,769 500,997
Receivable from associated companies ................ -- 3,141 -- --
Deferred organizational expenses .................... 6,120 -- 8,618 --
Other ............................................... 30,695 36,939 34,700 60,271
----------- ----------- ----------- -----------
Total Assets ........................................ 100,581,994 151,958,077 433,906,352 807,849,928
----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities purchased .................... 923,630 2,740,085 14,962,349 18,286,738
Payable for Capital Stock repurchased ............... 168,902 151,665 412,092 1,407,961
Unrealized depreciation on forward
currency contracts ............................... 93,310 135,831 159,070 817,398
Accrued expenses, taxes, and other .................. 260,258 315,673 630,264 1,224,771
----------- ----------- ----------- -----------
Total Liabilities ................................... 1,446,100 3,343,254 16,163,775 21,736,868
----------- ----------- ----------- -----------
NET ASSETS .......................................... $99,135,894 $148,614,823 $417,742,577 $786,113,060
=========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A .......................................... $ 2,978 $ 12,814 $ 15,053 $ 46,369
Class B .......................................... 15 152 401 122
Class D .......................................... 2,640 5,273 12,429 18,284
Additional paid-in capital .......................... 85,552,186 133,621,918 349,756,881 733,002,839
Accumulated net investment loss ..................... (220,167) (474,311) (1,301,953) (3,344,800)
Undistributed net realized gain on investments ...... 1,680,463 490,860 17,475,645 8,894,664
Net unrealized appreciation of investments .......... 13,850,907 16,877,858 54,918,878 56,510,418
Net unrealized depreciation on translation of assets
and liabilities denominated in foreign currencies
and forward currency contracts ................... (1,733,128) (1,919,741) (3,134,757) (9,014,836)
----------- ------------ ------------ ------------
NET ASSETS .......................................... $99,135,894 $148,614,823 $417,742,577 $786,113,060
=========== ============ ============ ============
NET ASSETS:
Class A .......................................... $52,947,509 $104,531,499 $228,092,818 $565,200,318
Class B .......................................... $ 267,390 $ 1,232,537 $ 5,923,471 $ 1,468,670
Class D .......................................... $45,920,995 $ 42,850,787 $183,726,288 $219,444,072
SHARES OF CAPITAL STOCK OUTSTANDING:
Class A .......................................... 2,978,106 12,813,778 15,053,399 46,368,739
Class B .......................................... 15,367 151,569 400,684 122,389
Class D .......................................... 2,639,596 5,273,440 12,428,519 18,284,241
NET ASSET VALUE PER SHARE:
Class A .......................................... $17.78 $8.16 $15.15 $12.19
Class B .......................................... $17.40 $8.13 $14.78 $12.00
Class D .......................................... $17.40 $8.13 $14.78 $12.00
</TABLE>
- -------------
See notes to financial statements.
- ----
24
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1996
<TABLE>
<CAPTION>
GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND
------------ -------------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ........................................... $ 624,779 $ 495,885 $ 1,144,056 $ 747,606
Interest ............................................ 84,112 137,464 434,038 2,183,873
---------- ---------- ---------- ----------
Total investment income* ............................ 708,891 633,349 1,578,094 2,931,479
---------- ---------- ---------- ----------
EXPENSES:
Management fees ..................................... 451,828 457,033 1,305,686 3,347,573
Distribution and service fees ....................... 229,273 218,684 750,272 1,516,969
Shareholder account services ........................ 108,213 195,774 398,276 1,380,972
Custody and related services ........................ 72,306 82,218 118,189 209,822
Shareholder reports and communications .............. 39,636 36,300 42,746 74,401
Auditing and legal fees ............................. 35,178 39,002 35,178 35,179
Registration ........................................ 22,161 48,465 51,984 85,321
Directors' fees and expenses ........................ 4,367 3,939 4,300 4,393
Amortization of organizational expenses ............. 3,671 -- 3,042 --
Miscellaneous ....................................... 4,968 1,201 6,050 8,712
---------- ---------- ---------- ----------
Total expenses ...................................... 971,601 1,082,616 2,715,723 6,663,342
---------- ---------- ---------- ----------
Net investment loss ................................. (262,710) (449,267) (1,137,629) (3,731,863)
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments .................... 1,197,471 235,922 17,302,711 9,688,987
Net realized gain from foreign currency transactions 1,699,033 229,894 917,528 2,499,132
Net change in unrealized appreciation of investments 11,309,255 16,877,858 37,695,157 5,843,223
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities
denominated in foreign currencies and forward
currency contracts .............................. (3,737,422) (1,919,741) (6,263,893) (5,632,676)
----------- ----------- ----------- -----------
Net gain on investments and foreign currency
transactions ..................................... 10,468,337 15,423,933 49,651,503 12,398,666
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS .............. $10,205,627 $14,974,666 $48,513,874 $ 8,666,803
=========== =========== =========== ===========
- ----------
*Net of foreign taxes withheld as follows: .......... $93,151 $53,446 $156,225 $98,457
</TABLE>
See notes to financial statements.
25
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL GROWTH
OPPORTUNITIES GLOBAL SMALLER GLOBAL
INTERNATIONAL FUND FUND COMPANIES FUND TECHNOLOGY FUND
-------------------------- -------------- ----------------------- ---------------------------
SIX MONTHS YEAR ENDED SIX MONTHS SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 4/30/96 10/31/95 ENDED 4/30/96 ENDED 4/30/96 10/31/95 ENDED 4/30/96 10/31/95
------------ ----------- -------------- ----------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss) ................ $ (262,710) $ 91,680 $(449,267) $(1,137,629) $ (636,807) $(3,731,863) $(2,259,466)
Net realized gain on
investments ........... 1,197,471 107,795 235,922 17,302,711 13,624,396 9,688,987 37,630,540
Net realized gain from
foreign currency
transactions .......... 1,699,033 2,665,639 229,894 917,528 612,519 2,499,132 3,115,205
Net change in unrealized
appreciation/depreciation
of investments ........ 11,309,255 (1,749,894) 16,877,858 37,695,157 9,286,138 5,843,223 45,696,354
Net change in unrealized
appreciation/depreciation
on translation of assets
and liabilities denominated
in foreign currencies
and forward currency
contracts ............. (3,737,422) (2,193,540) (1,919,741) (6,263,893) 122,958 (5,632,676) (4,035,567)
---------- ---------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations 10,205,627 (1,078,320) 14,974,666 48,513,874 23,009,204 8,666,803 80,147,066
---------- ---------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ............... -- -- -- -- -- (734,205) --
Net realized gain on investments:
Class A ............... (2,689,619) (2,535,690) -- (7,753,041) (1,358,384) (29,793,277) (506,847)
Class D ............... (1,872,543) (858,276) -- (6,615,915) (1,134,039) (10,861,462) (84,094)
---------- ---------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from
distributions ......... (4,562,162) (3,393,966) -- (14,368,956) (2,492,423) (41,388,944) (590,941)
---------- ---------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:*
Net proceeds from sale of
shares:
Class A ............... 7,118,540 14,368,837 92,162,718 90,486,686 49,499,681 159,065,467 360,662,688
Class B ............... 267,056 -- 1,222,645 5,849,082 -- 1,444,826 --
Class D ............... 11,001,660 15,310,748 35,279,266 72,983,919 40,513,236 71,957,914 141,486,971
Shares issued in payment
of dividends--Class A -- -- -- -- -- 530,705 --
Exchanged from associated
Funds:
Class A ............... 10,549,709 9,722,723 9,017,899 27,148,026 15,768,458 19,610,094 27,074,750
Class D ............... 3,922,245 2,556,052 5,451,432 13,655,610 5,514,387 11,850,414 19,697,655
Shares issued in payment
of gain distributions:
Class A ............... 1,773,104 2,386,633 -- 7,033,570 1,265,938 27,593,626 470,951
Class D ............... 1,649,485 815,096 -- 6,106,305 1,065,232 10,345,798 81,693
---------- ---------- ----------- ----------- ----------- ----------- -----------
Total ................... 36,281,799 45,160,089 143,133,960 223,263,198 113,626,932 302,398,844 549,474,708
---------- ---------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased:
Class A ............... (11,186,463) (26,669,397) (4,093,992) (6,407,312) (8,956,953) (36,283,544) (33,194,965)
Class B ............... -- -- -- (51) -- -- --
Class D ............... (1,852,106) (2,728,512) (1,024,921) (6,315,927) (4,830,211) (11,201,435) (6,863,194)
Exchanged into associated Funds:
Class A ............... (7,329,443) (10,430,952) (3,681,750) (12,089,358) (12,541,162) (28,510,052) (19,854,654)
Class D ............... (2,457,603) (3,647,337) (693,140) (2,879,818) (4,374,915) (16,922,773) (16,982,122)
----------- ----------- ------------ ------------ ------------ ------------ ------------
Total ................... (22,825,615) (43,476,198) (9,493,803) (27,692,466) (30,703,241) (92,917,804) (76,894,935)
----------- ----------- ------------ ------------ ------------ ------------ ------------
Increase in net assets
from capital share
transactions .......... 13,456,184 1,683,891 133,640,157 195,570,732 82,923,691 209,481,040 472,579,773
----------- ----------- ------------ ------------ ------------ ------------ ------------
Increase (decrease) in
net assets ............ 19,099,649 (2,788,395) 148,614,823 229,715,650 103,440,472 176,758,899 552,135,898
NET ASSETS:
Beginning of period ..... 80,036,245 82,824,640 -- 188,026,927 84,586,455 609,354,161 57,218,263
----------- ----------- ------------ ------------ ------------ ------------ ------------
End of period ........... $99,135,894 $80,036,245 $148,614,823 $417,742,577 $188,026,927 $786,113,060 $609,354,161
=========== =========== ============ ============ ============ ============ ============
- ---------
*The Fund began offering Class B shares on April 22, 1996.
See notes to financial statements.
</TABLE>
- ----
26
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Seligman Henderson Global Fund Series, Inc. (the "Fund") consists of four
separate Series: Seligman Henderson International Fund (the "International
Fund"), Seligman Henderson Global Growth Opportunities Fund (the "Global Growth
Opportunities Fund"), Seligman Henderson Global Smaller Companies Fund (the
"Global Smaller Companies Fund"), and Seligman Henderson Global Technology Fund
(the "Global Technology Fund"). The Global Growth Opportunities Fund had no
operations prior to its commencement on November 1, 1995, other than those
relating to organizational matters. Each Series of the Fund offers three classes
of shares. 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.
The Fund began offering Class B shares on April 22, 1996.
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 B 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 a contingent
deferred sales load ("CDSL"), if applicable, of 5% on redemptions in the first
year after purchase, declining to 1% in the sixth year and 0% thereafter. Class
B shares will automatically convert to Class A shares on the last day of the
month that precedes the eighth anniversary of their date of purchase. 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 CDSL of 1% imposed on certain redemptions made within one year of
purchase. The three 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 other 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 US dollars. Foreign
currency amounts are translated into US dollars on the following basis:
(i) market value of investment securities, other assets, and
liabilities, at the 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, which are to be distributed to shareholders of the Fund. The rate of
exchange between the US dollar and other currencies is determined by the
forces of supply and demand in the foreign exchange markets.
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 US dollar equivalents 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.
----
27
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
d. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized, if
any, annually. Withholding taxes on foreign dividends and interest have
been provided for in accordance with the Fund's understanding of the
applicable country's tax rules and rates.
e. The treatment for financial statement purposes of distributions made during
the year from net investment income or net realized gains may differ from
their ultimate treatment for federal income tax purposes. These differences
primarily are caused by differences in the timing of the recognition of
certain components of income, expense or capital gain; and the
recharacterization of foreign exchange gains or losses to either ordinary
income or realized capital gains for federal income tax purposes. Where
such differences are permanent in nature, they are reclassified in the
components of net assets based on their ultimate characterization for
federal income tax purposes. Any such reclassifications will have no effect
on net assets, results of operations, or net asset value per share of the
Fund.
f. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income
tax purposes. Dividends receivable and payable are recorded on ex-dividend
dates. Interest income is recorded on an accrual basis.
g. Deferred organizational expenses are being amortized on a straight-line
basis over a five-year period, beginning with the commencement of
operations of the International Fund and the Global Smaller Companies Fund.
h. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares
based upon the relative value of shares of each class. Class-specific
expenses, which include distribution and service fees and any other items
that are specifically attributed to a particular class, are charged
directly to such class. For the six months ended April 30, 1996,
distribution and service fees were the only class-specific expenses.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended April 30, 1996, were as follows:
Series Purchases Sales
------ ---------- -----
International Fund $ 35,487,441 $ 25,509,682
Global Growth
Opportunities Fund 138,463,331 13,170,207
Global Smaller
Companies Fund 235,882,416 83,808,803
Global Technology Fund 407,016,356 258,362,593
At April 30, 1996, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio
securities, including the effects of foreign currency translations, were as
follows:
Total Total
Unrealized Unrealized
Series Appreciation Depreciation
------ ------------ -----------
International Fund $13,625,442 $ 1,591,073
Global Growth
Opportunities Fund 16,587,453 1,567,980
Global Smaller
Companies Fund 58,948,524 7,324,265
Global Technology Fund 93,911,598 45,607,159
4. J.&W. Seligman & Co. Incorporated (the "Manager") manages the affairs of the
Fund and provides or arranges for 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 or by Seligman Henderson Co. (the "Subadviser"),
a 50%-owned affiliate of 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 the Subadviser. During the six months
ended April 30, 1996, the Manager, at its discretion, waived a portion of its
fees for the Global Growth Opportunities Fund equal to $36,845. The management
fee reflected in the statements of operations represents 0.93% per annum of that
Series' average daily net assets.
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
------ ------------ -----------
International Fund $ 26,299 $ 202,485
Global Growth
Opportunities Fund 146,572 3,735,511
Global Smaller
Companies Fund 362,557 2,908,355
Global Technology Fund 735,226 5,971,724
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares, under which service organizations
can enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis, payable quarterly, of the average daily net
assets of the Class A shares attributable to the particular service
organizations for providing personal services and/or the maintenance of
shareholder accounts. The Distributor charges such fees to the Fund pursuant to
the Plan. For the six months ended April 30, 1996, fees incurred by the
International Fund, the Global Growth Opportunities Fund, the Global Smaller
Companies Fund, and the Global Technology Fund, aggregated $39,461, $91,800,
$165,852, and $605,876, respectively, or 0.15%, 0.25%, 0.23%, and 0.25%,
respectively, per annum of the average daily net assets of Class A shares.
- ----
28
<PAGE>
- --------------------------------------------------------------------------------
The Fund has a Plan with respect to Class B and 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 B and Class D shares for which the organizations are
responsible; and, for Class D shares only, 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.
With respect to Class B shares, a distribution fee of up to 0.75% on an
annual basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to substantially all
of this fee to a third party (the "Purchaser"), which provided funding to the
Distributor to enable it to pay commissions to dealers at the time of the sale
of the related Class B shares.
For the six months ended April 30, 1996, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B and Class
D shares, were as follows:
Series Class B Class D
------ ------- ---------
International Fund $ 39 $189,773
Global Growth
Opportunities Fund 173 126,711
Global Smaller
Companies Fund 689 583,731
Global Technology Fund 154 910,939
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares. For the six months ended April 30, 1996, such charges were as
follows:
Series Class D
------ --------
International Fund $ 3,764
Global Growth
Opportunities Fund 8,038
Global Smaller
Companies Fund 19,288
Global Technology Fund 90,987
The Distributor has sold its rights to collect any CDSL imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSL and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amounts of such
payments and the Class B share distribution fees retained by the Distributor for
the six months ended April 30, 1996 were as follows:
Series Amount
------ --------
International Fund $ 611
Global Growth
Opportunities Fund 2,501
Global Smaller
Companies Fund 9,068
Global Technology Fund 2,485
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of Fund shares, as well as distribution and
service fees pursuant to the Plan. For the six months ended April 30, 1996,
Seligman Services, Inc. received commissions from sales of Fund shares and
distribution and service fees, pursuant to the Plan, as follows:
Distribution and
Series Commissions service fees
------ ------------ --------------
International Fund $ 1,725 $ 6,639
Global Growth
Opportunities Fund 7,239 979
Global Smaller
Companies Fund 58,877 7,251
Global Technology Fund 160,105 13,552
Seligman Data Corp., which is owned by certain associated investment
companies, charged the following amounts at cost, for shareholder account
services:
Series Amount
------ ---------
International Fund $ 108,213
Global Growth Opportunities Fund 195,774
Global Smaller Companies Fund 398,276
Global Technology Fund 1,380,972
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
------ ---------
International Fund $8,750
Global Growth Opportunities Fund 8,750
Global Smaller Companies Fund 8,750
Global Technology Fund 8,750
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 cost of such fees
and interest is included in directors' fees and expenses, and the following
accumulated balances thereof at April 30, 1996, are included in other
liabilities:
Series Amount
------ ---------
International Fund $9,925
Global Growth Opportunities Fund 847
Global Smaller Companies Fund 6,441
Global Technology Fund 3,410
- ----
29
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
5. At April 30, 1996, the Fund had outstanding forward exchange currency
contracts to purchase or sell foreign currencies as follows:
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US $ DATE VALUE US $ (DEPRECIATION)
-------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
Purchases:
Swiss Francs 822,420 669,941 05/01/96 661,375 $ (8,566)
German Deutschemarks 222,544 145,549 05/02/96 145,421 (128)
---------
(8,694)
---------
Sales:
German Deutschemarks 207,428 136,331 05/02/96 135,543 788
German Deutschemarks 2,923,000 2,000,000 05/08/96 1,907,661 92,339
French Francs 17,191,080 3,400,000 05/09/96 3,323,438 76,562
Japanese Yen 1,004,634,500 9,500,000 05/13/96 9,584,616 (84,616)
---------
85,073
---------
$ 76,379
=========
GLOBAL GROWTH OPPORTUNITIES FUND
Purchases:
Japanese Yen 7,136,162 68,531 05/01/96 68,012 $ (519)
Thai Bahts 10,225,152 405,021 05/02/96 404,917 (104)
---------
(623)
---------
Sales:
Hong Kong Dollars 10,523,581 1,360,603 05/02/96 1,360,462 141
German Deutschemarks 1,461,250 1,000,000 05/08/96 953,667 46,333
Swedish Kronor 9,829,400 1,400,000 05/08/96 1,449,253 (49,253)
French Francs 5,540,590 1,100,000 05/09/96 1,071,126 28,874
Japanese Yen 1,020,520,000 9,650,216 05/13/96 9,736,171 (85,955)
---------
(59,860)
---------
$ (60,483)
=========
GLOBAL SMALLER COMPANIES FUND
Purchases:
British Pounds 619,979 935,672 05/01/96 934,339 $ (1,333)
Dutch Guilders 676,233 394,420 05/01/96 394,788 368
Hong Kong Dollars 2,961,851 382,940 05/01/96 382,901 (39)
Hong Kong Dollars 2,621,759 338,956 05/01/96 338,934 (22)
Japanese Yen 70,038,599 658,134 05/01/96 667,511 9,377
Japanese Yen 148,569,767 1,426,772 05/01/96 1,415,962 (10,810)
Belgian Francs 41,437,500 1,318,826 05/02/96 1,316,312 (2,514)
Finnish Markkas 1,770,218 365,710 05/02/96 366,047 337
Malaysian Ringgits 30,313 12,169 05/02/96 12,157 (12)
Swedish Kronor 202,606 29,909 05/02/96 29,862 (47)
---------
(4,695)
---------
Sales:
Thai Bahts 5,097,392 201,909 05/02/96 201,857 52
German Deutschemarks 6,284,450 4,300,000 05/08/96 4,101,471 198,529
French Francs 22,752,900 4,500,000 05/09/96 4,398,668 101,332
Japanese Yen 1,713,166,200 16,200,000 05/13/96 16,344,293 (144,293)
---------
155,620
---------
$ 150,925
=========
GLOBAL TECHNOLOGY FUND
Purchases:
British Pounds 355,471 536,477 05/02/96 535,713 $ (764)
Thai Bahts 38,126,640 1,510,205 05/02/96 1,509,816 (389)
---------
(1,153)
---------
Sales:
Hong Kong Dollars 6,322,414 817,399 05/01/96 817,346 53
Hong Kong Dollars 1,938,837 250,674 05/02/96 250,648 26
Thai Bahts 58,427,708 2,315,803 05/02/96 2,313,740 2,063
Japanese Yen 4,650,605,000 44,588,734 10/31/96 45,404,979 (816,245)
---------
(814,103)
---------
$(815,256)
=========
</TABLE>
- ----
30
<PAGE>
- --------------------------------------------------------------------------------
6. 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
among any Series of the Fund. As of April 30, 1996, the Board of Directors had
classified 400,000,000 shares for the International Fund and 500,000,000 shares
each for the Global Growth Opportunities Fund, the Global Smaller Companies Fund
and the Global Technology Fund, all at a par value of $.001 per share. In
addition, 100,000,000 shares were allocated to the Seligman Henderson Emerging
Markets Growth Fund, a new Series which commenced operations on May 28, 1996.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
GLOBAL GROWTH
OPPORTUNITIES GLOBAL SMALLER GLOBAL
INTERNATIONAL FUND FUND COMPANIES FUND TECHNOLOGY FUND
------------------------ ---------- ------------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
4/30/96 10/31/95 4/30/96 4/30/96 10/31/95 4/30/96 10/31/95
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ...................... 419,130 883,953 12,621,664 6,518,306 3,891,326 13,555,837 30,447,088
Class B ...................... 15,367 -- 151,569 400,687 -- 122,389 --
Class D ...................... 659,067 957,943 4,768,705 5,355,091 3,258,190 6,246,135 12,061,813
Shares issued in payment
of dividends--Class A ........ -- -- -- -- -- 46,553 --
Exchanged from associated
Funds:
Class A ...................... 625,084 582,898 1,218,907 1,955,933 1,207,701 1,691,792 2,337,457
Class D ...................... 235,890 156,168 730,768 992,437 425,098 1,035,883 1,690,219
Shares issued in payment of
gain distributions:
Class A ...................... 106,942 152,467 -- 543,133 117,325 2,420,493 59,388
Class D ...................... 101,382 52,587 -- 481,950 99,928 918,810 10,354
--------- --------- --------- --------- --------- --------- ---------
Total ........................... 2,162,862 2,786,016 19,491,613 16,247,537 8,999,568 26,037,892 46,606,319
--------- --------- --------- --------- --------- --------- ---------
Shares repurchased:
Class A ...................... (658,185) (1,626,181) (535,187) (462,318) (732,207) (3,173,616) (2,851,418)
Class B ...................... -- -- -- (3) -- -- --
Class D ...................... (111,139) (172,007) (133,747) (462,679) (398,296) (981,447) (578,504)
Exchanged into associated
Funds:
Class A ...................... (433,320) (635,170) (491,606) (873,964) (989,792) (2,490,431) (1,731,922)
Class D ...................... (148,479) (227,011) (92,286) (212,498) (357,856) (1,478,540) (1,419,748)
--------- --------- --------- --------- --------- --------- ---------
Total ........................... (1,351,123) (2,660,369) (1,252,826) (2,011,462) (2,478,151) (8,124,034) (6,581,592)
--------- --------- --------- --------- --------- --------- ---------
Increase in shares .............. 811,739 125,647 18,238,787 14,236,075 6,521,417 17,913,858 40,024,727
========= ========= ========= ========= ========= ========= =========
----
31
</TABLE>
<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
PER SHARE OPERATING PERFORMANCE:
<TABLE>
<CAPTION>
NET REALIZED
NET REALIZED & UNREALIZED INCREASE
NET ASSET NET UNREALIZED GAIN (LOSS) (DECREASE) DISTRIBUTIONS
VALUE AT INVESTMENT& GAIN (LOSS) FROM FOREIGN FROM FROM NET INCREASE
BEGINNING INCOME ON CURRENCY INVESTMENT DIVIDENDS NET GAIN (DECREASE) IN
FISCAL YEAR OR PERIOD OF PERIOD (LOSS)*** INVESTMENTS TRANSACTIONS OPERATIONS PAID REALIZED NET ASSET VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
CLASS A:
Six months ended 4/30/96 $16.71 $(0.02) $ 2.39 $(0.38) $ 1.99 $ -- $(0.92) $ 1.07
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 B:
4/22/96**- 4/30/96 17.38 -- 0.02 -- 0.02 -- -- 0.02
CLASS D:
Six months ended 4/30/96 16.43 (0.09) 2.36 (0.38) 1.89 -- (0.92) 0.97
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
GLOBAL GROWTH
OPPORTUNITIES FUND
CLASS A:
Six months ended 4/30/96 7.14 (0.02) 1.16 (0.12) 1.02 -- -- 1.02
Class B:
4/22/96**- 4/30/96 8.04 -- 0.09 -- 0.09 -- -- 0.09
CLASS D:
Six months ended 4/30/96 7.14 (0.05) 1.16 (0.12) 0.99 -- -- 0.99
GLOBAL SMALLER
COMPANIES FUND
CLASS A:
Six months ended 4/30/96 13.90 (0.03) 2.51 (0.27) 2.21 -- (0.96) 1.25
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 B:
4/22/96**- 4/30/96 14.44 -- 0.34 -- 0.34 -- -- 0.34
CLASS D:
Six months ended 4/30/96 13.63 (0.09) 2.47 (0.27) 2.11 -- (0.96) 1.15
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
GLOBAL TECHNOLOGY FUND
CLASS A:
Six months ended 4/30/96 13.05 (0.05) 0.03 (0.05) (0.07) (0.02) (0.77) (0.86)
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 B:
4/22/96**- 4/30/96 11.47 -- 0.53 -- 0.53 -- -- 0.53
CLASS D:
Six months ended 4/30/96 12.89 (0.09) 0.02 (0.05) (0.12) -- (0.77) (0.89)
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
</TABLE>
- --------------
*Commencement of investment operations.
**Commencement of 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.
+++For the six months ended April 30, 1996.
See notes to financial statements.
- ----
32
<PAGE>
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.
Average commission rate paid represents the average commission paid by the
Series to purchase or sell portfolio securities. It is determined by dividing
the total commission dollars paid by the number of shares purchased and sold
during the period for which commissions were paid. This rate is provided for
fiscal periods beginning November 1, 1995.
<TABLE>
<CAPTION>
WITHOUT MANAGEMENT FEE WAIVER
RATIOS/SUPPLEMENTAL DATA*** AND/OR EXPENSE REIMBURSEMENT***
---------------------------------------------------------------- ------------------------------------
RATIO OF NET
INVESTMENT
NET INVESTMENT NET RATIO OF INCOME
NET ASSET TOTAL RETURN EXPENSES TO INCOME (LOSS) AVERAGE NET ASSETS AT INVESTMENT EXPENSES TO (LOSS
VALUE AT BASED ON AVERAGE TO AVERAGE PORTFOLIO COMMISSION END OF PERIOD INCOME (LOSS) AVERAGE TO AVERAGE
END OF PERIOD NET ASSET VALUE NET ASSETS NET ASSETS TURNOVER RATE PAID (000'S OMITTED) PER SHARE NET ASSET NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$17.78 12.28% 1.79%+ (0.26)%+ 29.45% $0.015 $ 52,948
16.71 (1.24) 1.69 0.35 60.70 48,763
17.67 12.85 1.63 0.27 39.59 62,922
15.98 34.78 1.75 0.27 46.17 33,134 $(0.04) 2.30% (0.28)%
11.89 (0.92) 1.75+ 1.25+ 12.77 14,680 -- 2.92+ 0.08+
17.40 0.12 2.75+ 2.36+ 29.45+++ 0.015+++ 267
17.40 11.87 2.64+ (1.03)+ 29.45 0.015 45,921
16.43 (2.08) 2.50 (0.44) 60.70 31,273 (0.09) 2.62 (0.56)
17.53 12.03 2.50 (0.53) 39.59 19,903 (0.11) 2.67 (0.70)
15.96 4.79 2.50+ (1.86)+ 46.17++ 1,648 (0.11) 8.49+ (7.84)+
8.16 14.29 2.00+ (0.74)+ 12.53 0.015 104,531 (0.03) 2.07+ (0.81)+
8.13 1.12 2.75+ (0.72)+ 12.53+++ 0.015+++ 1,233 -- 2.90+ (0.87)+
8.13 13.87 2.75+ (1.41)+ 12.53 0.015 42,851 (0.05) 2.82+ (1.48)+
15.15 17.03 1.74+ (0.52)+ 33.43 0.020 228,093
13.90 20.10 1.83 (0.20) 63.05 102,479
11.93 20.28 1.92 (0.77) 62.47 46,269
9.98 39.86 1.98 (0.29) 60.03 20,703 (0.18) 3.90 (2.21)
7.15 0.14 1.75+ 0.13+ -- 1,562 (0.07) 12.28+ (10.44)+
14.78 2.35 2.57+ 0.18+ 33.43+++ 0.020+++ 5,924
14.78 16.61 2.51+ (1.30)+ 33.43 0.020 183,726
13.63 19.11 2.61 (0.97) 63.05 85,548
11.80 19.45 2.70 (1.53) 62.47 38,317
9.94 16.67 2.75+ (1.35)+ 60.03++ 10,344 (0.11) 4.25+ (2.85)+
12.19 (0.12) 1.79+ (0.91)+ 43.32 0.018 565,200
13.05 57.31 1.91 (0.89) 87.42 447,732
8.37 17.23 2.00+ (0.45)+ 29.20 50,719 (0.02) 2.18+ (0.63)+
12.00 4.62 2.67+ (1.53)+ 43.32+++ 0.018+++ 1,469
12.00 (0.53) 2.54+ (1.66)+ 43.32 0.018 219,444
12.89 55.95 2.66 (1.63) 87.42 161,622
8.34 16.81 2.75+ (1.22)+ 29.20 6,499 (0.06) 3.36+ (1.83)+
---
33
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ---------------------------------------------------------
AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.:
We have audited the accompanying statements of assets
and liabilities, including the portfolios of
investments, of the International Fund, the Global
Growth Opportunities Fund, the Global Smaller Companies
Fund, and the Global Technology Fund Series of Seligman
Henderson Global Fund Series, Inc. as of April 30,
1996, the related statements of operations for the six
months then ended and of changes in net assets (1) for
the six months then ended and for the year ended
October 31, 1995, for the International Fund, the
Global Smaller Companies Fund and the Global Technology
Fund and (2) for the six months then ended for the
Global Growth Opportunities Fund, and the financial
highlights for each of the periods presented. These
financial statements and financial highlights are the
responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of
securities owned at April 30, 1996, by correspondence
with the Fund's custodian and brokers; where replies
were not received from brokers, we performed other
auditing procedures. An audit also includes assessing
the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe
that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects,
the financial position of each Series of Seligman
Henderson Global Fund Series, Inc. as of April 30,
1996, 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.
DELOITTE & TOUCHE LLP
New York, New York
May 31, 1996
---------------------------------------------------------
- ----
34
<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 ANDCEO, 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, 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
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
---------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
--------------------------------------------------------
- ----
35
<PAGE>
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS ----------------------------------------------------------
William C. Morris Arsen Mrakovcic
CHAIRMAN VICE PRESIDENT
Brian T. Zino Loris D. Muzzatti
PRESIDENT VICE PRESIDENT
Brian Ashford-Russell Lawrence P. Vogel
VICE PRESIDENT VICE PRESIDENT
Peter Bassett Paul H. Wick
VICE PRESIDENT VICE PRESIDENT
Iain C. Clark Thomas G. Rose
VICE PRESIDENT TREASURER
Nitin Mehta Frank J. Nasta
VICE PRESIDENT SECRETARY
-------------------------------------------------------------
MANAGER
J. & W. Seligman & Co. SHAREHOLDER SERVICE AGENT
Incorporated Seligman Data Corp.
100 Park Avenue 100 Park Avenue
New York, NY 10017 New York, NY 10017
GENERAL COUNSEL
SULLIVAN & CROMWELL IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
INDEPENDENT AUDITORS
Deloitte & Touche LLP (800) 445-1777 Retirement Plan
Services
SUBADVISER
Seligman Henderson Co.
100 Park Avenue (800) 622-4597 24-Hour Automated
New York, NY 10017 Telephone Access
Service
GENERAL DISTRIBUTOR
Seligman Financial
Services, Inc.
100 Park Avenue
New York, NY 10017
-------------------------------------------------------------
- ----
36
<PAGE>
OVERALL
YELLOW
TINT
- ---
37
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
AN AFFILIATE OF
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
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.
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EQSH3 4/96 Printed On Recycled Paper
<PAGE>
