================================================================================
SELIGMAN
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
International Fund
Emerging Markets Growth Fund
Global Growth Opportunities Fund
Global Smaller Companies Fund
Global Technology Fund
================================================================================
Investing Around the World for Capital Appreciation
OCTOBER 31, 1996 o ANNUAL REPORT
<PAGE>
[PHOTO]
SELIGMAN
ESTABLISHED 1864
[PHOTO]
HENDERSON
INVESTING SINCE 1872
SELIGMAN
ESTABLISHED 1864
HENDERSON
INVESTING SINCE 1872
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, 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
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 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.
GLOBAL INVESTMENT CAPABILITIES
Seligman and Henderson combined employ more than 100 investment professionals,
organized into investment teams. Seligman Henderson believes its team approach
to managing global investments ensures a free exchange of ideas and information
from investment professionals, with unique insight into each of the world's
geographic regions. Seligman Henderson is headquartered in New York, and
Henderson has additional offices in London, Singapore, and Tokyo.
<PAGE>
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS
We are pleased to provide you with this Annual Report for Seligman Henderson
Global Fund Series, Inc., which includes Seligman Henderson International Fund,
Seligman Henderson Emerging Markets Growth Fund, Seligman Henderson Global
Growth Opportunities Fund, Seligman Henderson Global Smaller Companies Fund, and
Seligman Henderson Global Technology Fund. The Funds' overall investment results
for the 12 months ended October 31, 1996, were mixed. For your convenience,
Fund-specific information, including comments from the Portfolio Managers,
begins on page 3.
The fundamental economic and market background remained strong in most of the
world's major financial markets for the six months ended October 31, 1996. In
particular, inflation remained stable and, in many countries, short-term
interest rates were flat, or declined.
In the US, the economy remained remarkably stable, and equities continued to
perform well. They were supported by declining long-term interest rates, strong
inflows into mutual funds, and solid corporate earnings. As a result, the US
equity market continued to outpace most international equity markets.
In the UK, the economy continued to grow due to strengthening consumer
spending. This led to some upward pressure on interest rates, but also to a very
strong currency. Overall, conditions proved positive for Continental European
equity markets, although most currencies weakened against the US Dollar, which
reduced returns in Dollar terms. The overall background was one of low interest
rates and tight fiscal policies. There was a concerted effort by several
countries to meet their budget deficit targets (fiscal policy) as required by
the Maastricht Treaty in order to achieve monetary union by the year 1999.
In Japan, the economy slowed somewhat but still progressed, interest rates
reached record low levels, and corporate profits were generally satisfactory.
However, domestic investors cautiously remained on the sidelines while
significant new fund raising and equity sales by life insurance companies kept
the supply of stock high. This supply imbalance left the market trading in a
relatively narrow range.
In the Pacific, the Hong Kong stock market performed exceptionally well, but
both Thailand and South Korea fell sharply. In Thailand, a combination of
political worries, capital outflows, and the banking sector's debts caused
investors to flee the market. In South Korea, a corporate profit collapse was
the overriding factor.
Elsewhere, Latin American economies and stock markets made a reasonable
recovery following a very difficult 1995. Finally, Central European markets all
performed well due to very low stock valuations.
Going forward, we anticipate that the fundamental economic environment will
remain solid, and should reasonably support the equity markets. However, there
are signs of some excesses in the financial markets, including high mutual fund
sales, a large number of initial public offerings (IPOs), and volatile Japanese
money seeking high returns. As always, there could be short-term volatility, but
we remain confident in the long-term outlook.
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.
December 2, 1996
1
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
<TABLE>
<CAPTION>
EMERGING GLOBAL GROWTH
HIGHLIGHTS INTERNATIONAL MARKETS GROWTH OPPORTUNITIES
October 31, 1996 FUND FUND* FUND*
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS:
<S> <C> <C> <C>
Class A (in millions) $ 51.0 $19.9 $107.5
Class B (in millions) 2.9 10.5 9.3
Class D (in millions) 47.9 13.7 53.5
----------- --------- -----------
Total $101.8 $44.1 $170.3
- --------------------------------------------------------------------------------------------------------------------
DIVIDENDS (Class A)** -- -- --
- --------------------------------------------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS
(Class A and Class D)*** $0.916 -- --
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
October 31, 1996
Class A $17.17 $6.78 $8.08
Class B 16.74 6.76 8.02
Class D 16.74 6.76 8.02
April 30, 1996
Class A 17.78 n/a 8.16
Class B 17.40 n/a 8.13
Class D 17.40 n/a 8.13
October 31, 1995
Class A 16.71 n/a n/a
Class D 16.43 n/a n/a
- --------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER
SHARE:
October 31, 1996
Class A $18.03 $7.12 $8.48
Class B 16.74 6.76 8.02
Class D 16.74 6.76 8.02
April 30, 1996
Class A 18.67 n/a 8.56
Class B 17.40 n/a 8.13
Class D 17.40 n/a 8.13
October 31, 1995
Class A 17.54 n/a n/a
Class D 16.43 n/a n/a
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
HIGHLIGHTS COMPANIES TECHNOLOGY
October 31, 1996 FUND FUND
- -------------------------------------------------------------------------------
NET ASSETS:
<S> <C> <C>
Class A (in millions) $350.3 $499.9
Class B (in millions) 104.0 18.8
Class D (in millions) 285.5 197.4
----------- -----------
Total $739.8 $716.1
- -------------------------------------------------------------------------------
DIVIDENDS (Class A)** -- $0.019
- -------------------------------------------------------------------------------
CAPITAL GAIN DISTRIBUTIONS
(Class A and Class D)*** $0.955 $0.771
- -------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
October 31, 1996
Class A $15.14 $11.31
Class B 14.72 11.09
Class D 14.72 11.09
April 30, 1996
Class A 15.15 12.19
Class B 14.78 12.00
Class D 14.78 12.00
October 31, 1995
Class A 13.90 13.05
Class D 13.63 12.89
- -------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER
SHARE:
October 31, 1996
Class A $15.90 $11.87
Class B 14.72 11.09
Class D 14.72 11.09
April 30, 1996
Class A 15.91 12.80
Class B 14.78 12.00
Class D 14.78 12.00
October 31, 1995
Class A 14.59 13.70
Class D 13.63 12.89
- -------------------------------------------------------------------------------
</TABLE>
* Commencement of operations May 28, 1996, and November 1, 1995, for Emerging
Markets Growth Fund and Global Growth Opportunities Fund, respectively.
** Represents per share amount paid on December 27, 1995.
*** Represents per share amount paid on December 27, 1995. On November 22, 1996,
payments of $0.885 and $0.730 were made to Class A, Class B, and Class D
shares of the International and Global Smaller Companies Funds,
respectively.
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.
2
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
INTERNATIONAL FUND
IAIN C. CLARK,
PORTFOLIO MANAGER
[GROUP PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) TIM STEVENSON, JAMES ROBINSON, IAIN
CLARK, (PORTFOLIO MANAGER), PETER BASSETT, DAVID THORNTON, MISSING FROM PHOTO:
BEN ELWES, KIRSTEEN MORRISON
SELIGMAN HENDERSON INTERNATIONAL FUND, WHICH COMMENCED INVESTMENT OPERATIONS ON
APRIL 7, 1992, SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN
THE STOCKS OF LARGER-SIZED COMPANIES OUTSIDE THE U.S. WITH PROSPECTS FOR ABOVE-
AVERAGE GROWTH.
Over the past 12 months, we have seen mixed results in both the
international economies and stock markets. European markets performed
reasonably well, while the Pacific posted poor results.
UNITED KINGDOM
In the UK, the economy was quite healthy, primarily due to strengthened
consumer spending. As a result, the Fund directly benefited from its
significant position in consumer-related issues such as Granada Group, a
television broadcasting and leisure group, and Tesco, a supermarket chain.
Additionally, the UK stock market was up 16.6%, posting the best
performance in the six months ended October 31. Returns were largely
driven by the strength of Sterling, which rose 8.5% against the US Dollar.
Overall, the Fund's weighting in the UK was maintained at approximately
17% throughout the period.
CONTINENTAL EUROPE
Though economic conditions in Continental Europe were unimpressive at
April 30, the last six months brought a turn for the better in most
markets. In particular, Germany benefited from increased new orders,
improved business confidence, and low interest rates. Otherwise,
Continental Europe focused on meeting the Maastricht budget deficit
criteria for entry into the European Monetary Union in 1999. The emphasis
on Maastricht requirements resulted in a number of austerity budgets,
which will limit overall GNP growth. However, it is essential that
Continental European economies grow at 2% or more in order to achieve
these budget targets, which suggests that interest rates could remain low
despite the budget constraints.
Within the portfolio, we continued to increase the overall investment in
Continental Europe to end the period at almost 39%. Specifically, the
Fund's weightings in Spain, Sweden, and Germany were increased, while the
holdings in Switzerland and the Netherlands were reduced. More
specifically, positions in economically-sensitive stocks such as Michelin
(France), Sol Melia (Spain), Electrolux (Sweden), and Volkswagen (Germany)
were increased.
JAPAN
Japan's slow rate of economic recovery did not meet the expectations we
had when we last reported to you. There were doubts about the pace of the
recovery, as evidenced in the most recent Tankan Survey -- a measure of
business confidence -- that suggested a slowdown in manufacturing, which
put pressure on economically-sensitive stocks. Nonetheless, the Fund's
focus on economically-sensitive stocks was maintained, as we continue to
believe that the economy will improve. Companies such as Sankyo, a
manufacturer of pachinko game equipment, and Tsubakimoto Nakishima, a
manufacturer of ball bearings, were purchased, as they should both benefit
from a growing economy.
Further, the Yen continued to weaken sharply. As a result,
export-related holdings provided very strong results, with leading
electronics stocks such as Toshiba and Alps Electric posting solid
returns.
3
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
INTERNATIONAL FUND
PACIFIC/EMERGING MARKETS
The large decline in exports negatively affected the Asian markets,
though performance was very mixed. Hong Kong rose quite significantly,
performing strongly due to a stable economy. In Australia and Taiwan,
where the economies were also reasonably steady, the markets rose only
modestly. Elsewhere, markets in South Korea, Thailand, and Singapore
experienced sharp declines due largely to a considerable slowdown in
their economies and, in Thailand, from worrisome political developments.
These economies were severely affected by the collapse of prices in the
electronics sector. In Singapore, for example, electronics make up more
than 50% of total exports. Overall, the weighting in the Pacific was
reduced to 15.4%. In contrast, the weighting in Latin America and
Emerging Europe was increased with purchases in Peru, Brazil, Hungary,
and the Czech Republic.
OUTLOOK
The fundamental economic background is quite positive, and we expect that
moderate growth and low levels of inflation should continue around the
world. The outlook for corporate profits will be important for future
performance. We anticipate reasonable performance in the UK and
improvements in Continental Europe and Japan, although some of these
expectations may be already reflected in stock market prices. As both the
bond and equity markets were partly fueled by excess Japanese liquidity,
a short-term setback could be provoked when this cash flow dries up.
Nonetheless, we anticipate that the fundamental background will continue
to remain positive, and believe that markets could rise further in the
medium term.
4
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
INTERNATIONAL FUND
PERFORMANCE COMPARISON CHART AND TABLE
The following chart compares a $10,000 hypothetical investment made in
Seligman Henderson International Fund Class A shares, with and without
the maximum initial sales charge of 4.75%, since the commencement of
investment operations on April 7, 1992, through October 31, 1996, to a
$10,000 hypothetical investment made in the Lipper International Funds
Average (Lipper Int'l Average) and the Morgan Stanley Capital
International EAFE (Europe, Australasia, Far East) Index(R) (MSCI EAFE
Index) for the same period. The performances of Seligman Henderson
International Fund Class B and Class D shares are not shown in the chart,
but are included in the table below. It is important to keep in mind that
the Average and Index do not include any fees or sales charges.
<TABLE>
<CAPTION>
[THE FOLLOWING TABLE REPRESENTS A GRAPH]
SELIGMAN HENDERSON INTERNATIONAL FUND
WITH SALES WITHOUT LIPPER INTERNATIONAL
CHARGE SALES CHARGE FUNDS AVERAGE MSCI EAFE INDEX
------ ------------ ------------- ---------------
<S> <C> <C> <C> <C>
4/7/92 .......... 9,523.81 10,000.00 10,000.00 10,000.00
4/30/92 ......... 10,248.00 10,050.00
7/31/92 ......... 9,444.45 9,916.66 10,080.63 9,962.57
10/31/92 ........ 9,436.51 9,908.33 9,652.69 9,843.01
1/31/93 ......... 9,662.00 10,145.09 9,876.17 9,994.60
4/30/93 ......... 11,269.67 11,833.16 11,209.89 12,266.37
7/31/93 ......... 11,444.77 12,017.01 11,553.25 12,770.52
10/31/93 ........ 12,718.18 13,354.09 12,731.44 13,571.23
1/31/94 ......... 14,011.78 14,712.37 14,183.96 14,411.29
4/30/94 ......... 13,646.25 14,328.57 13,595.51 14,344.99
7/31/94 ......... 13,971.16 14,669.73 13,773.03 14,613.25
10/31/94 ........ 14,352.93 15,070.58 14,093.07 14,980.04
1/31/95 ......... 12,724.46 13,360.68 12,610.31 13,808.60
4/30/95 ......... 13,530.34 14,206.86 13,461.92 15,189.46
7/31/95 ......... 14,438.01 15,159.92 14,295.42 15,675.52
10/31/95 ........ 14,175.04 14,883.80 13,941.04 14,970.12
1/31/96 ......... 15,146.16 15,903.46 14,827.84 16,083.90
4/30/96 ......... 15,916.00 16,711.80 15,633.94 16,973.84
7/31/96 ......... 15,173.01 15,931.66 15,124.66 16,277.43
10/31/96 ........ 15,369.95 16,138.44 15,510.41 16,588.33
</TABLE>
TOTAL RETURNS*
FOR PERIODS ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
AVERAGE ANNUAL
--------------------------------------------
SINCE SINCE
INCEPTION ONE INCEPTION SINCE
4/22/96 YEAR 9/21/93 4/7/92
------------ ------- ------------ -------
CLASS A
<S> <C> <C> <C> <C>
With Sales Charge n/a 3.30% n/a 9.86%
Without Sales Charge n/a 8.43 n/a 11.04
CLASS B
With 5% CDSL (8.50)% n/a n/a n/a
Without CDSL (3.68) n/a n/a n/a
CLASS D
With 1% CDSL n/a 6.62 n/a n/a
Without CDSL n/a 7.62 7.08% n/a
LIPPER INT'L AVERAGE** (0.79)+ 11.26 8.09++ 10.04+++
MSCI EAFE INDEX** (2.27)+ 10.80 7.79++ 11.67+++
</TABLE>
* Return figures reflect any change in price per share and assume the
reinvestment of dividend and capital gain distributions. Return figures for
Class A shares are calculated with and without the effect of the initial
4.75% maximum sales charge. No adjustment was made to the performance of
Seligman Henderson International Fund Class A shares for periods prior to
September 21, 1993, the commencement date for the annual Administration,
Shareholder Services and Distribution Plan fee of up to 0.25% of average
daily net assets. Returns for Class B shares are calculated with and
without the effect of the maximum 5% contingent deferred sales load
("CDSL"), charged only on certain redemptions made within one year of the
date of purchase, declining to 1% in the sixth year and 0% thereafter.
Returns for Class D shares are calculated with and without the effect of
the 1% CDSL, charged only on redemptions made within one year of the date
of purchase.
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. 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.
** The Lipper Int'l Average and the MSCI EAFE Index are unmanaged benchmarks
that assume reinvestment of estimated dividends and do not reflect fees and
expenses. The monthly performance of the Lipper Int'l Average is used in
the performance chart and table. Investors may not invest directly in an
average or an index.
+ From April 30, 1996.
++ From September 30, 1993.
+++ From March 31, 1992.
5
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
INTERNATIONAL FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED OCTOBER 31, 1996
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/96
- ------------- ----------- ------------
Accor ...................................... 9,115 9,115
Istituto Nazionale delle
Assicurazioni ........................... 794,477 794,477
Koninklijke Ahold .......................... 20,213 20,213
Mannesmann ................................. 3,127 3,127
Pharmacia & Upjohn ......................... 29,027 29,027
Samsung Electronics ........................ 14,690 14,690
Sandoz ..................................... 947 947
STET Societa' Finanzaria
Telefonica .............................. 461,410 461,410
VEBA ....................................... 21,989 21,989
Volkswagen ................................. 3,078 3,078
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 23,049 shares received as a result of a 10-for-1 stock split.
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/96
- -------------- ----------- ------------
Assicurazione Generali .................... 52,795 --
East Japan Railway ........................ 162 339
LaFarge Coppee ............................ 16,979 --
Nestle .................................... 1,222 --
Norsk Hydro ............................... 29,442 --
Perusahaan Otomobil Nasional .............. 115,000 73,000
Roussel Uclaf ............................. 5,979 --
Siemens ................................... 25,610(1) --
Unilever .................................. 43,000 --
YPF Sociedad An--nima (ADRs) .............. 30,000 --
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT OCTOBER 31, 1996
Japan 23.7%
United Kingdom 16.7
France 8.8
Germany 8.3
Sweden 4.8
Switzerland 4.8
Netherlands 4.5
Spain 4.5
Australia 3.5
Hong Kong 2.9
Italy 2.3
Malaysia 2.1
Singapore 1.9
Brazil 1.3
Taiwan 1.2
India 1.1
Mexico 1.1
South Korea 1.1
Thailand 0.9
Denmark 0.8
Indonesia 0.8
Peru 0.7
China 0.5
Philippines 0.5
Croatia 0.4
Czech Republic 0.4
Hungary 0.4
- ---------------------------------------
Total 100.0%
MAJOR PORTFOLIO HOLDINGS
AT OCTOBER 31, 1996
SECURITY VALUE
- ----------- ------------
Pioneer Electronic .................................... $2,428,697
Toshiba ............................................... 2,399,368
Nippon Telegraph & Telephone .......................... 2,393,023
East Japan Railway .................................... 1,555,919
Siebe ................................................. 1,415,637
Granada Group ......................................... 1,381,900
CSK ................................................... 1,352,348
Iberdrola ............................................. 1,351,023
ING Groep ............................................. 1,347,683
Tesco ................................................. 1,347,407
6
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
EMERGING MARKETS GROWTH FUND
[GROUP PHOTO]
INTERNATIONAL TEAM:(FROM LEFT) PETER BASSETT (PORTFOLIO MANAGER), JAMES SYME,
MONICA BALL, NICHOLAS VARDY, ELEANOR DALE. MISSING FROM PHOTO:KIRSTEEN MORRISON
PETER BASSETT,
PORTFOLIO MANAGER
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND, WHICH COMMENCED OPERATIONS ON
MAY 28, 1996, SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN
EQUITY SECURITIES OF EMERGING MARKETS AROUND THE WORLD.
Since the commencement of Seligman Henderson Emerging Markets Growth Fund
on May 28, 1996, the International Finance Corporation Composite, a
leading emerging market index, fell 4.8%, due particularly to weakness in
the Pacific region. This decline occurred despite improving fundamentals
in the emerging markets, increasing evidence of a slowdown in the US
economy, and stable US interest rates. However, economic growth in
emerging markets remained strong, with recoveries in Latin America,
Northeast Asia, and Southern Europe offsetting slowdowns in India and
some parts of Southeast Asia.
CENTRAL/SOUTHERN EUROPE
The economies of Central and Southern Europe continued to recover due to
increasing economic growth rates in Central Europe and an economic
recovery in Southern Europe. The markets within these regions showed
strength, with solid gains in Hungary, Russia, the Baltic Republics, and
Croatia. Since inception, the Fund has had significant exposure to
Central/Southern Europe and now has a weighting of 20.4% in the region,
with many profitable investments in companies such as Komercni Banka in
the Czech Republic, a financial institution, EGIS in Hungary, a
pharmaceutical manufacturer, and Gazprom in Russia, a natural gas
producer.
PACIFIC
Within the Pacific, Taiwan was the best-performing larger market. The
Fund's exposure to Taiwan is in companies such as China Steel, one of the
world's leading steel producers. In China, both locally- and Hong
Kong-listed equity securities performed well. As a result, the Fund
benefited from its overweight position of 7.5% in China, and specifically
from Qingling Motors, a Chinese manufacturer of lightweight trucks listed
in Hong Kong. Elsewhere, markets were disappointing, with Thailand
declining the most. As a whole, Pacific markets have fallen 7.7% since
the end of May, and therefore, our overall exposure to the region was
reduced, to end the period at approximately 36%.
INDIAN SUBCONTINENT/AFRICA
The Indian Subcontinent/African markets were largely disappointing in the
period, with declines in South Africa, India, and Pakistan. The Fund's
relatively modest position in the Indian Subcontinent, however, limited
the region's effect on the portfolio. Weakness in the South African Rand
contributed to the South African market's poor performance in US Dollar
terms. Nonetheless, export stocks such as Anglo-American Corporation of
South Africa and Gencor were added as they should benefit from a weaker
Rand. In India, additions were made to solid domestic companies showing
strong profit growth, as they should lead the local equity market when it
rebounds. One such stock is Tata Engineering and Locomotive, the dominant
manufacturer of commercial vehicles in India. Elsewhere, Pakistan became
increasingly unstable during the period, and we therefore avoided
investment in the market.
7
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
EMERGING MARKETS GROWTH FUND
LATIN AMERICA
Since the launch of the Fund, Latin American markets were flat overall.
However, particular markets and selected stocks showed strong gains.
Mexico fell due to currency weakness, and Argentina fell as the political
environment worsened. Meanwhile, Brazil, the largest market within the
region, rose 10% as the benefits of the Real Reform Plan continued to
trickle down. The Fund saw solid gains in several Brazilian utility
stocks, including Cemig and Companhia Energetica de Sao Paulo. Despite
the decline of the Argentine market, Disco, a retailer, also performed
well. Further, the Fund saw sizeable returns in Chile from its holdings
in Santa Isabel, a retailer.
OUTLOOK
We believe the outlook for the Fund, and for emerging markets in general,
is positive, as strong growth in most emerging economies is anticipated
in 1997. It is also expected that the combination of growth and reform,
experienced in Central/Southern Europe in 1996, will continue and that
opportunities should present themselves in other markets, with good
prospects in Brazil, India, and China.
8
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
EMERGING MARKETS GROWTH FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON CHART AND TABLE
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Emerging Markets Growth Fund, with and without the maximum initial
sales charge of 4.75% for Class A shares, with the maximum 5% contingent
deferred sales load ("CDSL") for Class B shares, and with the 1% CDSL for Class
D shares, since the commencement of operations on May 28, 1996, through October
31, 1996, to a $10,000 hypothetical investment made in the Lipper Emerging
Markets Funds Average (Lipper EMF Average) and the Morgan Stanley Capital
International Emerging Markets Free Index (MSCI EMF Index) for the same period.
It is important to keep in mind that the Average and Index do not include any
fees or sales charges.
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
CLASS A WITH CLASS A WITHOUT CLASS B WITH CLASS D WITH
SALES CHARGE SALES CHARGE CDSL CDSL LIPPER EMF AVG MSCI EMFINDEX
---------- ---------- ---- ---- -------------- -------------
<C> <C> <C> <C> <C> <C> <C> <C>
5/28/96 9,538.29 10,014.00 10,014.00 10,014.00 10,000.00 10,000.00
6/30/96 9,498.27 9,971.99 9,985.99 9,985.99 10,126.00 10,062.00
7/31/96 9,018.02 9,467.79 9,453.78 9,453.78 9,523.50 9,374.77
8/31/96 9,404.89 9,873.95 9,859.94 9,859.94 9,794.92 9,614.76
9/30/96 9,404.89 9,873.95 9,859.94 9,859.94 9,854.67 9,697.45
10/31/96 9,044.70 9,495.80 8,994.40 9,373.11 9,590.57 9,438.52
</TABLE>
TOTAL RETURNS*
FOR THE PERIOD ENDED OCTOBER 31, 1996
SINCE
5/28/96
------------
CLASS A
With Sales Charge (9.55)%
Without Sales Charge (5.04)
CLASS B
With 5% CDSL (10.06)
Without CDSL (5.32)
CLASS D
With 1% CDSL (6.27)
Without CDSL (5.32)
LIPPER EMF AVERAGE** (4.09)+
MSCI EMF INDEX** (5.61)+
* Return figures reflect any change in price per share and assume the
reinvestment of dividend and capital gain distributions. Return figures
for Class A shares are calculated with and without the effect of the
initial 4.75% maximum sales charge. Returns for Class B shares are
calculated with and without the effect of the maximum 5% contingent
deferred sales load ("CDSL"), charged only on certain redemptions made
within one year of the date of purchase, declining to 1% in the sixth
year and 0% thereafter. Returns for Class D shares are calculated with
and without the effect of the 1% CDSL, charged only on redemptions made
within one year of the date of purchase.
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. 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.
** The Lipper EMF Average and the MSCI EMF Index are unmanaged benchmarks
that assume reinvestment of estimated dividends and do not reflect fees
and expenses. The monthly performance of the Lipper EMF Average is used
in the performance comparison chart and table. Investors may not invest
directly in an average or an index.
+ From May 31, 1996.
9
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
EMERGING MARKETS
GROWTH FUND
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT OCTOBER 31, 1996
Brazil 13.2%
India 7.6
Mexico 7.6
China 7.5
Taiwan 6.4
Malaysia 6.0
South Africa 6.0
South Korea 5.6
Thailand 4.4
Czech Republic 4.2
Philippines 4.2
Hungary 4.1
Croatia 4.0
Argentina 3.9
Portugal 3.1
Chile 2.8
Indonesia 1.8
Russia 1.8
Turkey 1.8
Peru 1.5
Greece 1.4
Egypt 1.1
- ---------------------------------------
Total 100.0%
MAJOR PORTFOLIO HOLDINGS
AT OCTOBER 31, 1996
SECURITY VALUE
- ----------- -----------
Telebras (ADRs) ........................................ $1,457,286
Cemig (ADRs) ........................................... 1,034,111
Samsung Electronics (GDRs) ............................. 1,007,301
Pliva (GDRs) ........................................... 975,000
Gedeon Richter (GDRs) .................................. 864,000
Companhia Vale do Rio Doce (ADRs) ...................... 819,940
Disco (ADRs) ........................................... 810,000
Formosa Fund ........................................... 795,420
EGIS ................................................... 783,459
Hindalco Industries (GDRs) ............................. 781,650
As Seligman Henderson Emerging Markets Growth Fund began operations on May 28,
1996, "Largest Portfolio Changes" are not applicable for this reporting period.
10
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
NITIN MEHTA AND
LORIS MUZZATTI,
PORTFOLIO MANAGERS
[GROUP PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) DAVID THORNTON, PETER BASSETT, MICHAEL
WOOD-MARTIN, HEATHER MANNERS, IAIN CLARK, STACEY NAVIN, BEN ELWES, NITIN MEHTA
(PORTFOLIO MANAGER). MISSING FROM PHOTO: KIRSTEEN MORRISON US TEAM:
[GROUP PHOTO]
(FROM LEFT) LOUISE OH, NATALIE BILLON, LOUISE KNIGHT, DAVE LEVY, KEN LONDONER,
(SEATED) LORIS MUZZATTI (PORTFOLIO MANAGER). MISSING FROM PHOTO: MICHELLE BORRE
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.
Growth investing around the world saw mixed results in the last 12
months. In the UK and Continental Europe, growth stocks significantly
outperformed value stocks, while disappointing economic growth in the
Pacific led to much weaker performance. Nonetheless, we have continued to
focus our portfolio strategy on four major global themes: "Consumer is
King;" "Global Trade;" "Productivity;" and "Quality of Life."
UNITED STATES
In the past 12 months, the US financial markets were influenced by
rapidly changing perceptions about the pace of economic growth and the
future path of interest rates, as well as the impending presidential
election, which further increased investor uncertainty. However, these
issues were resolved to the advantage of investors. The economy's growth
remained healthy with inflationary pressures abating, thus allowing the
Federal Reserve Board to leave interest rates unchanged at its September
24 meeting. Meanwhile, the financial markets reacted indifferently to the
presidential election, having already anticipated its outcome. After a
short setback in July, the equity markets began their ascent, climbing to
new highs by October 31.
During the period, the US weighting was increased slightly and it now
stands at 26.3%. Under the Consumer is King theme, Saks Holdings was
purchased, due to its rapid expansion potential, as was Liz Claiborne,
which has positive earnings growth potential. In the Quality of Life
theme, the focus was on tourism, and Sun International Hotels, Sabre
Group Holdings, and Viacom were purchased. The Fund's exposure to
technology was also increased after the brief market reversal in July,
with the purchase of Intel and increases in Microsoft and Sterling
Software.
The stable economic environment in the US should provide a positive
backdrop for the ongoing performance of select growth stocks. The Fund's
portfolio holdings in the US are attractively valued and have good
long-term prospects.
CONTINENTAL EUROPE
As foreseen in our April 30, 1996, Mid-Year Report, the outlook for the
economies in Continental Europe changed significantly in the last six
months as continued declines in interest rates finally yielded evidence
of an economic recovery. In addition, weaker exchange rates against the
US Dollar improved the prospects for exports.
We believe that economic growth will accelerate and spread throughout
Continental Europe. Therefore, the Fund's Continental European weighting
was substantially increased to approximately 26% with the addition of
several economically-sensitive growth stocks. For example, in the
Consumer is King theme, the Fund invested in three leading brands: SMH
Neuenberg in Switzerland, the maker of Swatch watches; Puma in Germany, a
producer of athletic footwear; and Porsche in Germany, a manufacturer of
luxury sports cars. In the Quality of Life theme, two hotel companies
were added: Accor in France and Sol Melia in Spain. Finally, under the
Productivity theme, two French securities were purchased: SGS-Thomson
Microelectronics and Valeo, which are, respectively, a specialized
semiconductor maker, and an auto components manufacturer benefiting from
the consolidation among auto suppliers.
11
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
JAPAN
Japan held great promise for economic growth six months ago, but
ultimately failed to meet our expectations. Despite very low interest
rates, falling bond yields, and the stimulating effects of a weaker
currency, domestic and foreign equity investors remained on the
sidelines. The resulting stock market performance was among the poorest
in the world. Although we believe that Japan's economic recovery will
eventually gain momentum, it may take longer than originally expected.
Consequently, the Fund's exposure to the market was reduced, to end the
period at 16.9%.
PACIFIC
Overall, the Pacific markets experienced mixed fortunes. While Hong Kong
rose significantly due to improving property prices and the receding
likelihood of a US interest rate increase, other markets fared poorly.
The decline in semiconductor prices and other commodity electronic
products caused a sharp slowdown in exports, notably in Singapore,
impeding economic growth. As a result, corporate profit forecasts were
downgraded. Furthermore, political problems, particularly in Thailand and
Indonesia, added to a deteriorating investment environment. While we
believe that the setback in the overall region's export growth is largely
a cyclical phenomenon, and therefore temporary, the recovery may take
some time. Therefore, the Fund's weighting in the Pacific markets was
reduced, to end the period at approximately 11.5%.
EMERGING MARKETS
Performance in the emerging markets also varied widely. The Fund's
investments in Central Europe and Latin America enjoyed handsome returns,
while those in South Africa suffered from currency depreciation.
Additionally, the gains made in India in the first quarter of 1996 were
significantly reduced.
Recently, the Fund made its first investment in Russia, purchasing
Gazprom, the world's leading provider of natural gas. With ownership of a
quarter of the world's gas reserves, and rising demand from Western
Europe, we believe that Gazprom could enjoy growing profitability.
OUTLOOK
We believe that a combination of higher global economic growth, subdued
inflation, and widespread corporate restructuring supports a positive
investment environment in which the current equity bull market can
continue. Just as the US market enjoyed the rewards of a long business
expansion in the last few years, we believe international markets are now
poised to benefit from similar conditions. In particular, we favor the
outlook for Continental Europe. A cyclical economic recovery, together
with structural improvements, should allow corporate profits to grow
substantially over the next few years. We are therefore optimistic for
the Fund's investments for the next fiscal year and continue to see ample
opportunities for growth investing around the world.
12
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
PERFORMANCE COMPARISON CHART AND TABLE
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Growth Opportunities Fund, with and without the maximum initial
sales charge of 4.75% for Class A shares, and with the 1% contingent deferred
sales load ("CDSL") for Class D shares, since the commencement of operations on
November 1, 1995, through October 31, 1996, to a $10,000 hypothetical investment
made in the Lipper Global Funds Average (Lipper Global Average) and the Morgan
Stanley Capital International World Index (MSCI World Index) for the same
period. The performance of Seligman Henderson Global Growth Opportunities Fund
Class B shares is not shown in the chart but is included in the table below. It
is important to keep in mind that the Average and Index do not include any fees
or sales charges.
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
<TABLE>
<CAPTION>
CLASS A CLASS A CLASS D LIPPER MSCI WORLD
WITH WITHOUT WITH GLOBAL MSCI WORLD
SALES CHARGE SALES CHARGE CDSL AVERAGE INDEX
------------ ------------ ---- ------- -----
<S> <C> <C> <C> <C> <C>
11/1/95 9,520.00 10,000.00 10,000.00 10,000.00 10,000.00
11/30/95 9,560.00 10,042.02 10,028.01 10,187.00 10,349.00
12/31/95 9,840.00 10,336.13 10,322.13 10,371.38 10,653.26
1/31/96 10,106.66 10,616.24 10,602.24 10,674.23 10,848.22
2/29/96 10,293.33 10,812.32 10,784.31 10,804.45 10,916.56
3/31/96 10,560.00 11,092.44 11,064.42 10,977.33 11,099.96
4/30/96 10,880.00 11,428.57 11,386.55 11,376.90 11,363.03
5/31/96 11,066.66 11,624.65 11,568.63 11,523.66 11,374.39
6/30/96 11,093.33 11,652.66 11,596.64 11,483.33 11,433.54
7/31/96 10,626.66 11,162.46 11,106.44 10,951.65 11,031.08
8/31/96 10,826.66 11,372.55 11,302.52 11,250.63 11,160.14
9/30/96 10,986.66 11,540.61 11,456.58 11,583.65 11,598.73
10/31/96 10,773.33 11,316.52 11,132.49 11,568.59 11,682.24
</TABLE>
TOTAL RETURNS*
FOR PERIODS ENDED OCTOBER 31, 1996
SINCE ONE YEAR
INCEPTION AND SINCE
4/22/96 11/1/95
------------ ------------
CLASS A
With Sales Charge n/a 7.73%
Without Sales Charge n/a 13.17
CLASS B
With 5% CDSL (5.24)% n/a
Without CDSL (0.25) n/a
CLASS D
With 1% CDSL n/a 11.33
Without CDSL n/a 12.33
LIPPER GLOBAL AVERAGE** 1.68+ 15.69++
MSCI WORLD INDEX** 2.81+ 16.82++
* Return figures reflect any change in price per share and assume the
reinvestment of dividend and capital gain distributions. Return figures for
Class A shares are calculated with and without the effect of the initial
4.75% maximum sales charge. Returns for Class B shares are calculated with
and without the effect of the maximum 5% contingent deferred sales load
("CDSL"), charged only on certain redemptions made within one year of the
date of purchase, declining to 1% in the sixth year and 0% thereafter.
Returns for Class D shares are calculated with and without the effect of the
1% CDSL, charged only on redemptions made within one year of the date of
purchase.
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. 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.
** The Lipper Global Average and the MSCI World Index are unmanaged benchmarks
that assume reinvestment of estimated dividends and do not reflect fees and
expenses. The monthly performance of the Lipper Global Average is used in
the performance comparison chart and table. Investors may not invest
directly in an average or an index.
+ From April 30, 1996.
++ From October 31, 1995.
13
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED OCTOBER 31, 1996
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/96
- ------------- ----------- ------------
Accor ......................................... 16,763 16,763
Intel ......................................... 17,000 17,000
Liz Claiborne ................................. 43,000 43,000
Porsche ....................................... 2,480 2,480
SGS-Thomson
Microelectronics ........................... 51,770 51,770
Saks Holdings ................................. 50,000 50,000
Sol Melia ..................................... 77,226 77,226
Sun International Hotels ...................... 42,000 42,000
Tabacalera .................................... 48,400 48,400
Valeo ......................................... 38,460 38,460
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 26,400 shares received as a result of a 2-for-1 stock split.
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/96
- -------------- ----------- ------------
Amgen .................................... 19,000 7,500
BSES (GDRs) .............................. 75,000 --
Boeing ................................... 12,000 6,900
Disney, Walt ............................. 19,700 --
Lojas Americanas (ADRs) .................. 48,000 --
LVMH (Louis Vuitton
Moet-Hennessy) ........................ 6,310 --
Nippon Television Network ................ 6,200 --
PepsiCo .................................. 31,900(1) 20,000
H.M. Sampoerna ........................... 142,000 --
STIC ..................................... 663,000 --
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT OCTOBER 31, 1996
United States 26.3%
Japan 16.9
United Kingdom 10.5
Sweden 6.9
France 6.2
Germany 4.7
Hong Kong 3.7
India 2.9
Spain 2.3
Australia 2.2
Thailand 1.8
Hungary 1.7
Singapore 1.5
South Africa 1.4
Switzerland 1.4
Denmark 1.2
Netherlands 1.2
Brazil 1.0
Malaysia 1.0
Finland 0.9
Norway 0.8
Russia 0.8
South Korea 0.8
Italy 0.7
Peru 0.7
China 0.4
Indonesia 0.1
- ---------------------------------------
Total 100.0%
MAJOR PORTFOLIO HOLDINGS
AT OCTOBER 31, 1996
SECURITY VALUE
- ----------- -----------
Serm Suk ................................................ $2,956,375
Gedeon Richter .......................................... 2,862,000
SGS-Thomson Microelectronics ............................ 2,738,383
L.M. Ericsson Telefon (Series B) ........................ 2,649,288
Kyocera ................................................. 2,504,432
Secom ................................................... 2,439,491
Sanyo Shinpan Finance ................................... 2,368,407
Shimachu ................................................ 2,334,796
Microsoft ............................................... 2,320,581
Valeo ................................................... 2,303,943
14
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
IAIN C. CLARK AND
ARSEN MRAKOVCIC,
PORTFOLIO MANAGERS
[CAPTION OF GROUP PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) HEATHER MANNERS, ANDREW STACK, WILLIAM GARNETT,
STEPHEN PEAK. MISSING FROM PHOTO: IAIN CLARK (PORTFOLIO MANAGER), MIRANDA
RICHARDS
US TEAM: (FROM LEFT) LARRY ROSSO, STORM BOSWICK, CAROLYN ROGERS, GUS SCACCO, TED
HILLENMEYER, (SEATED) ARSEN MRAKOVCIC (PORTFOLIO MANAGER), PAUL WICK, BRUCE
ZIRMAN. MISSING FROM PHOTO:PAUL KRIEGER
[PHOTO]
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND, WHICH COMMENCED INVESTMENT
OPERATIONS ON SEPTEMBER 9, 1992, SEEKS LONG-TERM CAPITAL APPRECIATION BY
INVESTING IN SMALLER-COMPANY STOCKS IN THE US AND AROUND THE WORLD.
Overall, with most regions experiencing a rally in the first half of 1996
and then a sharp correction in July, smaller companies around the world
had a turbulent 12 months. Performance worldwide was less consistent
following July. While smaller companies in Hong Kong and Malaysia reached
new highs, they were still below their July levels elsewhere.
UNITED STATES
In the US, the initial public offering market that supported
smaller-company performance earlier in the year began to taper off in
May. It slowed dramatically in July and the US smaller-company market
fell more than 7%. Earlier this year we reduced our weighting in the US
to 31.1%, from a weighting of approximately 37% in November 1995. This
reduction limited the impact of the July drop on the Fund's performance.
We also took the decline of smaller-company stocks as a buying
opportunity, using available cash to purchase companies such as Watson
Pharmaceuticals, a manufacturer of off-patent drugs, Maxim Integrated
Products, a manufacturer of integrated circuits, and Drilex
International, a provider of precision drilling products, which were very
attractive following the setback.
Within three months of the July correction, larger-company indices marked
new highs due to changing perceptions of economic growth and the future
direction of interest rates. Smaller companies, however, did not match
the surge of larger companies. The smaller-company indices remained below
their previous highs despite evidence of better earnings growth and more
reasonable valuation levels. However, current US smaller-company
valuations could provide support for stronger future performance.
UNITED KINGDOM
The last six months were much stronger for the UK than the November 1995
to April 1996 period. In US Dollar terms, the UK was the best performing
market for the six months ended October 31. However, in absolute terms,
smaller-company indices were still short of the levels previous to the
July setback, and smaller companies underperformed larger companies.
Nonetheless, there is little doubt that the economic background in the UK
has improved. This year was marked by the end of the property slump,
falling unemployment, and strong consumer spending. Indeed, interest
rates were raised in order to dampen strong consumption. In addition,
Sterling strengthened over the period, climbing almost 9% against the US
Dollar since May.
Throughout the period, the Fund's overall UK weighting remained unchanged
at approximately 15%. However, we shifted the portfolio to increase the
Fund's exposure to the outsourcing/technology sectors, with the purchase
of CRT Group, a provider of training and recruitment services, and Kewill
Systems, a computer systems and services company. Four biotechnology
stocks were also added: Chiroscience Group; Peptide Therapeutics; Shire
Pharmaceuticals; and Vanguard Medica Group.
CONTINENTAL EUROPE
Overall, Continental European markets also showed improved performance.
In US Dollar terms, Continental European smaller companies rose almost 6%
in the six months prior to July. Thereafter, the pattern of performance
matched global trends -- an equity market setback in July followed by
underperformance compared to larger companies. As the summer progressed
and clearer evidence of economic recovery emerged, particularly from June
onwards,
15
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
Continental European governments shifted their attention to fiscal policy
and meeting the Maastricht criteria for entry into the European Monetary
Union by 1999.
Continental Europe remains our favored area for the longer term. We
anticipate that economic growth should strengthen in the coming months
and consumer spending should continue to improve. In light of this
forecast, our exposure to Continental Europe was slightly increased in
June, and at this time the portfolio's weighting stands at 27.5%.
Existing holdings were added to, and new stocks were purchased: Rauma
Group (Finland), a manufacturer of forestry-related machinery; Assystem
(France), an industrial consultant; La Doria (Italy), a food producer;
L'Europeenne d'Extincteurs (France), a distributor of fire extinguishers;
and Hucke (Germany), a manufacturer of textiles and clothing.
JAPAN
Japan seemed to hold great promise at April 30, but failed to meet our
expectations and reward our increased weighting. The poor market
performance was due to the slow pace of economic recovery in the second
quarter of 1996, moribund consumer spending, and the recent Tankan Survey
-- a measure of business confidence -- that suggested a slowdown in
manufacturing. The weakness of the Yen, which benefits larger exporters
more than domestically-oriented smaller companies, also contributed to
the disappointing performance of smaller companies.
Despite recent underperformance, we still like this region for its
long-term potential. Historically, smaller-company stocks have
outperformed as the economy recovered. Though economic growth has taken
longer and has been more tentative than initially anticipated, we do not
doubt that the recovery will come, and that smaller companies should
benefit when it does. The Fund's Japanese weighting is focused on
cyclical stocks such as Namura Shipbuilding, a shipbuilder, Tsubakimoto
Nakishima, a manufacturer of ball bearings, and Sanyo Special Steel, a
steel manufacturer.
PACIFIC
After delivering strong market performance up to April 30, 1996, smaller
companies in the Pacific were weak in the past six months due to
collapsing markets in Thailand, South Korea, and Indonesia. It became
clear that growth in the Pacific region was slowing, albeit from high
levels, partly as a result of a decrease in exports. This raised concerns
about currencies and the balance of payments. The Fund's weighting in the
Pacific was decreased in the period to 7.3%, though exposure in Malaysia
was increased with the purchases of Southern Bank, a commercial bank, and
Sime UEP Properties, a property company, and in Hong Kong with the
purchases of Mandarin Oriental, a manager of hotels, and Guangnan
Holdings, a food distributor.
OUTLOOK
Going forward, it is anticipated that the global economy will experience
the strongest growth seen in a decade, and that any resulting increase in
inflation or interest rates is likely to be muted. Such an environment
should provide a constructive backdrop for the performance of smaller
companies around the world.
We believe Continental Europe offers strong potential for the coming
year, and we will maintain our weighting there. Japanese smaller
companies will require firm evidence of the economic recovery taking hold
in order to perform well, but there are strong possibilities for 1997.
Elsewhere, select smaller companies in the US and UK offer attractive
opportunities, with strong long-term prospects.
16
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN
HENDERSON
GLOBAL SMALLER
COMPANIES
FUND
PERFORMANCE COMPARISON CHART AND TABLE
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Smaller Companies Fund Class A shares, with and without the
maximum initial sales charge of 4.75%, since the commencement of investment
operations on September 9, 1992, through October 31, 1996, to a $10,000
hypothetical investment made in the Lipper Global Small Company Funds Average
(Lipper GSC Average) and the Morgan Stanley Capital International World Index
(MSCI World Index) for the same period. The performances of Seligman Henderson
Global Smaller Companies Fund Class B and Class D shares are not shown in the
chart, but are included in the table below. It is important to keep in mind that
the Average and Index do not include any fees or sales charges.
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
CLASS A CLASS A LIPPER
WITH WITHOUT GSC MSCI WORLD
SALES CHARGE SALES CHARGE AVERAGE INDEX
------------ ------------ ------- -----
8/31/92 9,520.00 10,000.00 10,000.00 10,000.00
10/31/92 9,533.33 10,014.00 10,080.67 9,644.00
10,527.99 11,058.82 11,016.17 9,934.28
11,342.97 11,914.89 11,574.32 11,263.49
12,224.76 12,841.14 12,258.93 11,667.85
10/31/93 13,333.67 14,005.96 13,839.31 12,313.08
15,149.91 15,913.78 14,979.59 12,995.23
14,894.50 15,645.49 14,210.16 12,659.95
14,262.69 14,981.83 13,814.77 12,904.29
10/31/94 16,037.13 16,845.73 14,590.18 13,318.52
14,756.97 15,501.03 13,353.59 12,677.90
16,461.30 17,291.29 14,182.38 13,960.90
18,567.46 19,503.65 15,926.70 14,788.78
10/31/95 19,260.27 20,231.39 15,830.86 14,654.20
19,921.84 20,926.32 16,567.49 15,896.88
22,540.40 23,676.90 18,455.92 16,650.39
21,930.39 23,036.14 17,539.05 16,165.86
10/31/96 22,525.52 23,661.28 18,238.36 17,119.65
TOTAL RETURNS*
FOR PERIODS ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
AVERAGE ANNUAL
--------------------------------------------------
SINCE SINCE
INCEPTION ONE INCEPTION SINCE
4/22/96 YEAR 5/3/93 9/9/92
------------ -------- ------------ ------------
CLASS A
<S> <C> <C> <C> <C>
With Sales Charge n/a 11.42% n/a 21.64%
Without Sales Charge n/a 16.95 n/a 23.09
CLASS B
With 5% CDSL (3.06)% n/a n/a n/a
Without CDSL 1.94 n/a n/a n/a
CLASS D
With 1% CDSL n/a 15.14 n/a n/a
Without CDSL n/a 16.14 20.63% n/a
LIPPER GSC AVERAGE** (1.18)+ 15.21 13.85++ 15.50+++
MSCI WORLD INDEX** 2.81+ 16.82 12.69++ 13.77+++
</TABLE>
* Return figures reflect any change in price per share and assume the
reinvestment of dividend and capital gain distributions. Return figures for
Class A shares are calculated with and without the effect of the initial
4.75% maximum sales charge. Returns for Class B shares are calculated with
and without the effect of the maximum 5% contingent deferred sales load
("CDSL"), charged only on certain redemptions made within one year of the
date of purchase, declining to 1% in the sixth year and 0% thereafter.
Returns for Class D shares are calculated with and without the effect of
the 1% CDSL, charged only on redemptions made within one year of the date
of purchase. Performance data quoted represent changes in prices and assume
that all distributions within the periods are invested in additional
shares. 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.
** The Lipper GSC Average and the MSCI World Index are unmanaged benchmarks
that assume reinvestment of estimated dividends and do not reflect fees and
expenses. The monthly performance of the Lipper GSC Average is used in the
performance comparison chart and table. Investors may not invest directly
in an average or an index.
+ From April 30, 1996.
++ From April 30, 1993.
+++ From August 31, 1992.
17
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED OCTOBER 31, 1996
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/96
- ------------- ----------- ------------
AmeriSource Health (Class A) .............. 150,000 150,000
Assystem .................................. 78,780 78,780
Berg Electronics .......................... 300,000 350,000
CalEnergy ................................. 275,000 425,000
L'Europeenne d'Extincteurs ................ 131,660 131,660
Memtec (ADRs) ............................. 150,000 150,000
Rauma Group ............................... 431,500 431,500
Roosevelt Financial Group ................. 300,000 360,000
Universal Outdoor Holdings ................ 255,000 255,000
Waters .................................... 244,000 244,000
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
(1) Includes 10,000 shares received as a result of a 3-for-2 stock split.
SHARES
---------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/96
- -------------- ----------- ------------
Anchor Gaming ............................. 39,000 --
Applied Extrusion
Technologies ........................... 200,000 --
Chesapeake Energy ......................... 40,000(1) --
D'Ieteren Trading ......................... 30,815 --
Hoganas (Series B) ........................ 95,900 --
Marieberg Tidnings (Series A) ............. 82,700 --
Oakley .................................... 86,000 --
Outdoor Systems ........................... 59,700 --
StrataCom ................................. 55,000 --
Sumitomo Sitix ............................ 85,000 --
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT OCTOBER 31, 1996
United States 31.1%
Japan 18.4
United Kingdom 14.8
France 5.0
Sweden 4.8
Germany 4.7
Finland 4.2
Hong Kong 2.1
Netherlands 1.9
Switzerland 1.8
Australia 1.7
Norway 1.7
Denmark 1.6
Malaysia 1.5
Austria 0.9
Italy 0.9
Singapore 0.9
Canada 0.5
Indonesia 0.5
India 0.2
South Korea 0.2
Taiwan 0.2
Thailand 0.2
Argentina 0.1
Brazil 0.1
- ---------------------------------------
Total 100.0%
MAJOR PORTFOLIO HOLDINGS
AT OCTOBER 31, 1996
SECURITY VALUE
- ----------- ------------
CalEnergy .............................................. $12,325,000
Berg Electronics ....................................... 9,887,500
Rauma Group ............................................ 7,882,233
L'Europeenne d'Extincteurs ............................. 7,737,977
Waters ................................................. 7,564,000
Universal Outdoor Holdings ............................. 7,442,813
Dendrite International ................................. 7,321,875
Assystem ............................................... 6,799,004
EKORNES ................................................ 6,562,089
Moebel Walther ......................................... 6,477,509
18
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL TECHNOLOGY FUND
BRIAN ASHFORD-RUSSELL
AND PAUL H. WICK,
PORTFOLIO MANAGERS
[CAPTION GROUP PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) TIM WOOLEY, EMMA PARKINSON, NICKI BARKER, BRIAN
ASHFORD-RUSSELL (PORTFOLIO MANAGER)
[PHOTO]
US TEAM: (FROM LEFT) LARRY ROSSO, STORM BOSWICK, CAROLYN ROGERS, GUS SCACCO, TED
HILLENMEYER, (SEATED) ARSEN MRAKOVCIC, PAUL WICK (PORTFOLIO MANAGER), BRUCE
ZIRMAN. MISSING FROM PHOTO:PAUL KRIEGER
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 the last 12 months, modest economic growth and subdued inflationary
pressures provided a healthy backdrop for the equity markets worldwide.
Though Japan and a few countries in the Pacific were notable exceptions,
equity share prices generally increased. The global technology market, on
the other hand, gave its investors quite an exciting ride. Volatility was
most pronounced in the US, where the first half of 1996 brought a
significant inventory correction in the personal computer (PC) and
components markets.
WORLDWIDE TECHNOLOGY MARKETS
Indeed, US technology shares suffered a dramatic correction in July, and,
at their lows, had fallen more than 20% in little more than six weeks'
time. More important, individual shares fell far more dramatically, none
so much as the many initial public offerings that came to market in late
Spring. In Asia, technology shares also suffered from the sharp falls in
component prices that accompanied the liquidation of surplus inventory.
European shares, however, provided a stabilizing influence in the global
technology market, and, although returns in the period were decidedly
mixed, individual companies performed well.
Since July, there has been a recovery in the technology market. In
October, the conditions that had undermined technology stocks seemed to
have finally ended. The inventory correction that adversely affected the
technology market for much of the last 12 months, though painful while it
lasted, seemed to have drawn to a close. PC demand appeared to be
stronger going into the fourth quarter, and was particularly robust
within the corporate market. Consequently, at October 31, technology
shares around the world looked far healthier than they had for quite some
time.
INVESTMENT STRATEGY
With regard to country and industry allocation, the Fund's weighting in
the US was increased in August to almost 57%, and the industry mix was
changed significantly from a year ago. Early in 1996, we de-emphasized
the portfolio's exposure to semiconductors, which was a large portion of
the Fund's US assets in 1995, in view of the deteriorating supply and
demand conditions. These assets were redeployed into
networking/communications, with purchases of Cisco Systems, 3Com, U.S.
Robotics, and Cabletron Systems. The networking/communications industry
remains extremely buoyant as the leading companies continue to deliver
exceptional earnings growth. Outside the US, a significant weighting in
the outsourcing industry was maintained, which improved the performance
of the Fund. In Europe, the combination of rapid changes in technology,
the approaching new millennium, and the shift to a common currency is
generating a tremendous increase in orders for information technology
consultancy companies. More recently, we increased our exposure to
companies that should benefit from the strength of PC demand in
anticipation of strong earnings in the fourth quarter of 1996.
OUTLOOK
Following 12 difficult months, the technology sector's valuations now
look far more attractive. Earnings growth has been strong, and
consequently price-to-earnings ratios have come down sharply. It is
expected that strong earnings growth will continue into 1997, and we
believe that technology stocks will provide stronger earnings than the
equity markets in general.
19
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN
HENDERSON
GLOBAL
TECHNOLOGY
FUND
PERFORMANCE COMPARISON CHART AND TABLE
The following chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Technology Fund, with and without the maximum initial sales
charge of 4.75% for Class A shares, and without the 1% contingent deferred sales
load ("CDSL") for Class D shares, since the commencement of operations on May
23, 1994, through October 31, 1996, to a $10,000 hypothetical investment made in
the Lipper Global Funds Average (Lipper Global Average) and the Morgan Stanley
Capital International World Index (MSCI World Index) for the same period. The
performance of Seligman Henderson Global Technology Fund Class B shares is not
shown in the chart, but is included in the table below. It is important to keep
in mind that the Average and Index do not include any fees or sales charges.
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
CLASS A CLASS A CLASS D LIPPER
WITH WITHOUT WITH GLOBAL MSCI WORLD
SALES CHARGE SALES CHARGE CDSL AVERAGE INDEX
------------ ------------ ---- ------- -----
<S> <C> <C> <C> <C> <C>
5/31/94 $9,520.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
7/31/94 $9,613.33 $10,098.04 $10,084.03 $10,086.16 $10,165.00
10/31/94 $11,160.00 $11,722.69 $11,680.67 $10,447.58 $10,491.30
1/31/95 $10,694.90 $11,234.15 $11,149.86 $9,558.11 $9,986.67
4/30/95 $13,264.37 $13,933.17 $13,820.73 $10,254.09 $10,997.32
7/31/95 $16,856.25 $17,706.14 $17,523.22 $11,224.31 $11,649.46
10/31/95 $17,555.79 $18,440.96 $18,215.67 $11,061.83 $11,543.45
1/31/96 $15,895.38 $16,696.83 $16,458.19 $11,807.65 $12,522.33
4/30/96 $17,535.27 $18,419.39 $18,119.11 $12,584.94 $13,115.89
7/31/96 $15,003.51 $15,759.99 $15,476.74 $12,114.53 $12,734.22
10/31/96 $16,269.39 $17,089.69 $16,745.08 $12,796.98 $13,485.54
</TABLE>
TOTAL RETURNS*
FOR PERIODS ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------
SINCE
INCEPTION ONE SINCE
4/22/96 YEAR 5/23/94
------------ ------ ------------
CLASS A
<S> <C> <C>
With Sales Charge n/a (11.72)% 22.04%
Without Sales Charge n/a (7.33) 24.52
CLASS B
With 5% CDSL (8.15)% n/a n/a
Without CDSL (3.31) n/a n/a
CLASS D
With 1% CDSL n/a (8.93) n/a
Without CDSL n/a (8.07) 23.48
LIPPER GLOBAL AVERAGE** 1.68+ 15.69 10.72++
MSCI WORLD INDEX** 2.81+ 16.82 13.15++
</TABLE>
* Return figures reflect any change in price per share and assume the
reinvestment of dividend and capital gain distributions. Return figures
for Class A shares are calculated with and without the effect of the
initial 4.75% maximum sales charge. Returns for Class B shares are
calculated with and without the effect of the maximum 5% contingent
deferred sales load ("CDSL"), charged only on certain redemptions made
within one year of the date of purchase, declining to 1% in the sixth year
and 0% thereafter. Returns for Class D shares are calculated with and
without the effect of the 1% CDSL, charged only on redemptions made within
one year of the date of purchase.
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. 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.
** The Lipper Global Average and the MSCI World Index are unmanaged
benchmarks that assume reinvestment of estimated dividends and do not
reflect fees and expenses. The monthly performance of the Lipper Global
Average is used in the performance comparison chart and table. Investors
may not invest directly in an average or an index.
+ From April 30, 1996.
++ From May 31, 1994.
20
<PAGE>
- --------------------------------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL TECHNOLOGY FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED OCTOBER 31, 1996
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/96
- ------------- ----------- ------------
ADE ........................................ 400,000 400,000
America Online ............................. 400,000 400,000
Azlan ...................................... 640,000 640,000
C-Cube Microsystems ........................ 150,000 150,000
Cabletron Systems .......................... 130,000 130,000
Gateway 2000 ............................... 200,000 200,000
HADCO ...................................... 550,000 550,000
Intel ...................................... 80,000 200,000
Storage Technology ......................... 250,000 250,000
Structural Dynamics Research ............... 350,000 350,000
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/96
- -------------- ----------- ------------
Altera ..................................... 150,000 --
Dell Computer .............................. 150,000 --
Electronics for Imaging .................... 150,000 --
KLA Instruments ............................ 350,000 --
Lam Research ............................... 200,000 --
LSI Logic .................................. 300,000 --
Olivetti ................................... 13,000,000 --
Speedfam International ..................... 400,000 --
Tektronix .................................. 160,000 --
Unitech .................................... 462,200 --
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT OCTOBER 31, 1996
United States 56.9%
United Kingdom 15.2
Japan 10.2
Netherlands 2.4
South Korea 2.1
Sweden 1.9
France 1.7
Israel 1.5
Italy 1.3
Taiwan 1.2
Canada 0.9
Germany 0.9
Singapore 0.8
Finland 0.7
Australia 0.6
Denmark 0.6
Hong Kong 0.3
Luxembourg 0.3
Belgium 0.2
Norway 0.2
Brazil 0.1
- ---------------------------------------
Total 100.0%
MAJOR PORTFOLIO HOLDINGS
AT OCTOBER 31, 1996
SECURITY VALUE
- ----------- -------------
Intel ............................................... $21,962,500
Cisco Systems ....................................... 18,543,750
HADCO ............................................... 16,671,875
Logica .............................................. 13,223,031
EMC ................................................. 13,125,000
3Com ................................................ 12,183,750
Glenayre Technologies ............................... 11,559,375
Synopsys ............................................ 11,312,500
America Online ...................................... 10,850,000
Microchip Technology ................................ 10,837,500
21
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996
SHARES VALUE
------ -----
COMMON STOCKS 98.3%
BANKING 11.0%
BANCO DE SANTANDER (SPAIN)
Worldwide banking operation 22,284 $ 1,142,546
CS HOLDINGS (SWITZERLAND)
Banking group 11,215 1,116,635
DEUTSCHE BANK (GERMANY)
Worldwide banking operation 23,950 1,110,484
HSBC HOLDINGS (UK)
Provider of banking services 56,800 1,156,965
MALAYAN BANKING (MALAYSIA)
Provider of banking services 69,000 682,628
ROYAL BANK OF SCOTLAND (UK)
Provider of banking services 122,000 1,011,607
SIAM COMMERCIAL BANK (THAILAND)
Provider of banking services 53,300 484,678
SOCIETE GENERALE (FRANCE)
Provider of full banking and
financial services 10,303 1,108,466
SUMITOMO TRUST AND BANKING (JAPAN)
Trust bank 106,000 1,172,093
UTD OVERSEAS BANK (SINGAPORE)
Comprehensive banking
operation with substantial
interests in Malaysia 85,660 833,186
WESTPAC BANKING (AUSTRALIA)
Provider of banking services 235,400 1,341,752
-----------
11,161,040
-----------
BUILDING MATERIALS 1.5%
CARADON (UK)
Supplier of building products 242,000 951,131
GUJURAT AMBUJA CEMENT (GDSS)
(INDIA)
Cement producer 67,200 571,200
-----------
1,522,331
-----------
BUSINESS SERVICES 3.0%
CSK (JAPAN)
Information services company 46,000 1,352,348
RENTOKIL (UK)
Provider of commercial services such
as pest control and office maintenance 160,400 1,076,802
S.I.T.A. (FRANCE)
Collection, cleaning, and waste
recycling services 3,286 675,621
-----------
3,104,771
-----------
CHEMICALS 4.1%
BAYER (GERMANY)
Producer of specialty chemicals,
pharmaceuticals, and plastics 32,101 1,210,201
DSM (NETHERLANDS)
Manufacturer of commodity chemicals 8,973 857,738
SANDOZ (SWITZERLAND)
Global research-based pharmaceutical
and nutrition group 947 1,091,141
SKW TROSTBERG (GERMANY)
Conglomerate involved in
construction materials, chemicals,
and agrochemicals 23,971 702,265
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 68,000 342,536
-----------
4,203,881
-----------
CONSTRUCTION AND
PROPERTY 4.7%
DBS LAND (SINGAPORE)
Property developer 196,000 617,849
EMPRESAS ICA SOCIEDAD
CONTROLADORA (ADRS)* (MEXICO)
Construction company 40,000 520,000
LAND AND HOUSE (THAILAND)
Residential property developer 44,700 371,434
SUN HUNG KAI PROPERTIES (HONG KONG)
Property developer 99,000 1,126,702
SWIRE PACIFIC (HONG KONG)
Conglomerate with major
interests in property
development and aviation 94,000 829,701
UNITED ENGINEERS (MALAYSIA)
Construction, principally
managing expressways 117,000 925,999
UNITED INDUSTRIAL (SINGAPORE)
Property company, mainly in
commercial rentals 523,000 434,441
-----------
4,826,126
-----------
CONSUMER PRODUCTS 2.4%
ELECTROLUX (SERIES B) (SWEDEN)
Manufacturer of appliances and
outdoor and industrial products 12,586 699,961
KAO (JAPAN)
Manufacturer of cosmetics and
personal care products 62,000 729,092
MATTHEW CLARK (UK)
Manufacturer and wholesaler of
alcoholic beverages 80,000 408,815
SANKYO (JAPAN)
Manufacturer of pachinko game
equipment 16,000 556,033
---------
2,393,901
---------
ELECTRONICS 6.7%
ALPS ELECTRIC (JAPAN)
Manufacturer of electrical equipment 66,000 816,674
PIONEER ELECTRONIC (JAPAN)
Manufacturer of audio equipment,
including laser disks 123,000 2,428,697
SAMSUNG ELECTRONICS (GDSS) (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 14,690 1,032,967
- ----------
See footnotes on page 42.
22
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
SHARES VALUE
------ -----
ELECTRONICS (CONTINUED)
SAMSUNG ELECTRONICS (GDRS)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 4,219 $ 75,942
SAMSUNG ELECTRONICS (GDRS) (VOTING)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 126 4,836
SAMSUNG ELECTRONICS (GDSS) (VOTING)*+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 420 19,173
TOSHIBA (JAPAN)
Diversified manufacturer of
consumer and industrial
electronics 384,000 2,399,368
----------
6,777,657
----------
FINANCIAL SERVICES 1.2%
GUANGDONG INVESTMENTS (CHINA)
Diversified investment company
investing in China 690,000 495,260
NOMURA SECURITIES (JAPAN)
Securities firm 43,000 709,434
----------
1,204,694
----------
HEALTH AND HOUSEHOLD 3.9%
British Biotech (UK)
Biotechnology company 170,000 626,650
EGIS (HUNGARY)
Manufacturer of pharmaceutical
products 7,000 421,862
NOVO NORDISK (CLASS B) (DENMARK)
Producer and supplier of insulin and
industrial enzymes 4,520 750,716
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 29,027 1,012,254
PLIVA (GDRS) (CROATIA)
Manufacturer of pharmaceutical
products 7,500 365,625
ROCHE HOLDINGS (SWITZERLAND)
European pharmaceutical
company and chemicals producer 102 769,022
----------
3,946,129
----------
INDUSTRIAL GOODS AND
SERVICES 4.7%
ABB (SWEDEN)
Manufacturer of heavy equipment
for electric power generation and
distribution 938 1,155,486
CIE GENERALE DES EAUX (FRANCE)
Water purification and distribution;
energy production 10,944 1,305,643
CITIC PACIFIC* (HONG KONG)
Holding company with interests in
Cathay Pacific Airlines, telecom-
munications, and power stations 185,000 899,603
INDUSTRIAL GOODS AND
SERVICES (CONTINUED)
SIEBE (UK)
Designer and manufacturer of
control devices and process
control technology 90,000 $1,415,637
----------
4,776,369
----------
INSURANCE 5.9%
AXA (FRANCE)
Provider of insurance and
financial services 20,534 1,280,205
ING GROEP (NETHERLANDS)
Worldwide underwriter of
reinsurance; provider of
financial and consumer credit 43,308 1,347,683
ISTITUTO NAZIONALE DELLE
ASSICURAZIONI (ITALY)
Second largest domestic insurer 794,477 1,096,693
MITSUI MARINE & FIRE (JAPAN)
Provider of non-life insurance 168,000 1,091,005
ZURICH VERSICHERUNG (SWITZERLAND)
Provider of insurance services 4,255 1,161,065
----------
5,976,651
----------
LEISURE AND HOTELS 3.2%
ACCOR (FRANCE)
Hotel operator and provider of
related services 9,115 1,142,612
GRANADA GROUP (UK)
Television group with additional
leisure interests 96,000 1,381,900
SOL MELIA (SPAIN)
Hotel manager and
franchise company 26,451 702,944
---------
3,227,456
---------
MANUFACTURING 8.0%
FKI BABCOCK (UK)
Electrical engineering company 300,000 1,025,294
HOKKAI CAN (JAPAN)
Manufacturer of cans for
the food industry 32,000 212,304
MANNESMANN (GERMANY)
Plant and machinery construction;
automotive technology 3,127 1,215,970
MICHELIN (FRANCE)
Manufacturer of all-purpose tires 19,467 936,964
PERUSAHAAN OTOMOBIL NASIONAL (MALAYSIA)
Manufacturer of automobiles 73,000 462,208
ROLLS ROYCE (UK)
Aerospace; power generation,
transmission, and distribution
systems 241,000 996,227
SMH NEUENBERG (SWITZERLAND)
Watch manufacturer of brands
including Swatch and Omega 4,741 663,665
TOKYO STEEL MANUFACTURING (JAPAN)
Producer of H beams 23,000 355,243
23
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
SHARES VALUE
------ -----
MANUFACTURING (CONTINUED)
VOLKSWAGEN (GERMANY)
Manufacturer of economy and
luxury cars and trucks 3,078 $1,216,188
YAMAHA (JAPAN)
Manufacturer of musical instruments
and audio equipment 70,000 1,062,747
----------
8,146,810
----------
MEDIA 4.9%
ELSEVIER (NETHERLANDS)
Global printer and publisher of
professional trade journals and
magazines 69,899 1,159,535
NEWS CORP. (AUSTRALIA)
Global printer and publisher of
professional trade journals
and magazines 162,946 926,193
NIPPON TELEVISION NETWORK (JAPAN)
Japanese television broadcasters 2,630 761,650
REUTERS HOLDINGS (UK)
Holding company for the Reuters
news organization 69,000 858,488
WPP GROUP (UK)
Provider of worldwide marketing
services, including advertising,
public relations, and market research 340,000 1,261,599
----------
4,967,465
----------
METALS 3.8%
COMPANHIA VALE DO RIO DOCE (ADRS) (BRAZIL)
Producer of iron ore and gold;
transport operator 30,000 630,723
HINDALCO INDUSTRIES (GDRS)+ (INDIA)
Major aluminum producer 30,000 521,100
MITSUBISHI MATERIALS (JAPAN)
Non-ferrous smelter
and cement producer 273,000 1,212,269
SUMITOMO METAL INDUSTRIES (JAPAN)
Blast furnace and steel producer 444,000 1,219,587
TSUBAKIMOTO NAKISHIMA (JAPAN)
Manufacturer of ball bearings 32,000 314,524
----------
3,898,203
----------
PAPER AND PRINTING 0.7%
STORA KOPPARBERGS (SWEDEN)
Manufacturer of forestry products 53,937 692,545
----------
RESOURCES 4.4%
BRITISH PETROLEUM (UK)
Oil producer, refiner, and
distributor 103,000 1,108,017
BROKEN HILL PROPRIETARY (AUSTRALIA)
Resources company with interests
in steel, oil, and minerals 48,046 637,097
ELF AQUITAINE (FRANCE)
Oil and gas exploration;
manufacturer of chemical compounds 14,956 1,193,805
GAS NATURAL (SPAIN)
Producer of natural gas 3,463 605,042
RESOURCES (CONTINUED)
NIPPON OIL (JAPAN)
Oil distributor 60,000 $ 342,255
WMC (AUSTRALIA)
Mineral and petroleum producer 94,000 590,112
----------
4,476,328
----------
RESTAURANTS 0.4%
DENNY'S (JAPAN)
Restaurant operator 14,000 443,528
----------
RETAILING 6.4%
ADIDAS (GERMANY)
Sporting goods 7,427 624,118
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 14,800 377,955
CARREFOUR SUPERMARCHE (FRANCE)
Supermarket operator in Europe,
the Americas, and Taiwan 2,088 1,156,636
CENTROS COMERCIALES PRYCA (SPAIN)
Owner and operator of
hypermarkets 29,430 674,989
JOSHIN DENKI (JAPAN)
Budget electrical appliance retailer 34,000 417,727
KONINKLIJKE AHOLD (NETHERLANDS)
International retailing organization,
focusing on distributing and selling
food products 20,213 1,177,145
SM PRIME HOLDINGS (PHILIPPINES)
Operator of shopping malls 2,352,000 501,187
TESCO (UK)
Supermarket chain 249,000 1,347,407
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer
of jewelry 7,000 220,535
---------
6,497,699
---------
TELECOMMUNICATIONS 7.9%
GRUPO CARSO (ADRS)*+ (MEXICO)
Holding company with a substantial
stake in Telmex and a number
of industrial subsidiaries 65,000 584,675
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Manufacturer of telecommunications
equipment 46,462 1,256,674
NIPPON TELEGRAPH & TELEPHONE (JAPAN)
Telecommunications company 343 2,393,023
SPT TELECOM (CZECH REPUBLIC)
Provider of telecommunications
services 3,500 373,591
STET SOCIETA' FINANZARIA TELEFONICA (ITALY)
Holding company for a number of
telecommunications businesses 461,410 1,228,254
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 9,686 716,511
TELEFONICA DEL PERU (ADRS) (PERU)
Provider of telecommunications
services 33,500 690,938
- ----------
See footnotes on page 42.
24
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
SHARES VALUE
------ -----
TELECOMMUNICATIONS (CONTINUED)
TELEKOMMUNIKASI (Indonesia)
Domestic telecommunications
monopoly 16,000 $ 23,956
TELEKOMMUNIKASI (ADRS) (INDONESIA)
Domestic telecommunications
monopoly 27,000 810,000
------------
8,077,622
------------
TOBACCO 1.1%
B.A.T. INDUSTRIES (UK)
Manufacturer of tobacco products;
financial services company 168,000 1,170,202
------------
TRANSPORTATION 4.7%
BAA (UK)
One of the world's largest owners
and operators of airports, including
Heathrow and Gatwick 116,000 939,201
EAST JAPAN RAILWAY (JAPAN)
Provider of railway services 339 1,555,919
LUFTHANSA (GERMANY)
Airline services worldwide;
operator of Penta hotels 82,380 1,075,053
MITSUI O.S.K. LINES (JAPAN)
Shipping company 435,000 1,213,954
------------
4,784,127
------------
UTILITIES 2.5%
IBERDROLA (SPAIN)
Provider of electric utility services 127,375 $ 1,351,023
VEBA (GERMANY)
Provider of electric energy 21,989 1,171,442
------------
2,522,465
------------
MISCELLANEOUS 1.2%
TAIWAN AMERICAN FUND (TAIWAN)
Fund investing in Taiwan25,500 332,520
TAIWAN FUND (TAIWAN)
Mainstream closed-end fund 90,000 877,500
------------
1,210,020
------------
TOTAL INVESTMENTS 98.3%
(Cost $94,249,303) 100,008,020
OTHER ASSETS LESS LIABILITIES 1.7% 1,749,985
------------
NET ASSETS 100.0% $101,758,005
============
- ----------
See footnotes on page 42.
25
<PAGE>
- --------------------------------------------------------------------------------
EMERGING MARKETS GROWTH FUND
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1996
SHARES VALUE
------ -----
COMMON STOCKS 91.7%
AUTOMOTIVE MANUFACTURING 3.3%
QINGLING MOTORS*(CHINA)
Manufacturer of lightweight trucks 1,800,000 $ 756,567
TATA ENGINEERING AND LOCOMOTIVE
(GDRS) (INDIA)
Manufacturer of commercial
automotive vehicles 53,000 715,500
---------
1 ,472,067
---------
CONSTRUCTION AND PROPERTY 3.9%
CITIC PACIFIC (CHINA)
Holding company with interests in
Cathay Pacific Airlines, telecom-
munications, and power stations 147,000 714,820
GRUPO ARA (MEXICO)
Provider of construction and
engineering services 137,000 292,049
GRUPO TRIBASA (ADRS) (MEXICO)
Provider of construction and
engineering services 61,300 283,512
IJM (MALAYSIA)
Provider of construction
and property services 200,000 435,299
---------
1 ,725,680
---------
CONSUMER GOODS AND SERVICES 7.2%
COMPANHIA CERVEJARA BRAHMA (BRAZIL)
Producer of beer and
other beverages 59,500 766,063
HELLENIC BOTTLING (GREECE)
Producer of Coca-Cola and
other beverages 17,600 565,764
PANAMERICAN BEVERAGES (ADRS) (MEXICO)
Producer of Coca-Cola and
other beverages 13,600 593,300
SAN MIGUEL (CLASS B) (PHILIPPINES)
Producer of beer and
other beverages 176,000 636,225
SOUTH AFRICAN BREWERIES (SOUTH AFRICA)
Producer of beer and
other beverages 23,100 600,064
---------
3,161,416
---------
DRUGS AND HEALTH CARE 6.0%
EGIS (HUNGARY)
Manufacturer of pharmaceutical
products 13,000 783,459
GEDEON RICHTER (GDRS) (HUNGARY)
Manufacturer of pharmaceuticals;
cosmetics; and pesticides 16,000 864,000
PLIVA (GDRS) (CROATIA)
Manufacturer of pharmaceutical
products 20,000 975,000
---------
2,622,459
---------
ELECTRIC UTILITIES 6.9%
BSES (GDRS)*+ (INDIA)
Provider of electrical utility services 31,000 589,000
ELECTRIC UTILITIES (CONTINUED)
CEMIG (ADRS) (BRAZIL)
Provider of electrical utility services 32,600 $1,034,111
COMPANHIA ENERGETICA DE SAO PAULO
(ADRS) (BRAZIL)
Provider of electrical utility services 38,700 392,124
ELECTRICITY GENERATING PUBLIC COMPANY
(THAILAND)
Provider of electrical utility services 150,000 435,072
HUANENG POWER INTERNATIONAL (ADRS)*
(CHINA)
Developer and manufacturer of
coal-fired power plants 18,000 274,500
KOREA ELECTRIC POWER (ADRS) (SOUTH KOREA)
Provider of electrical utility services 17,000 306,000
---------
3,030,807
---------
FINANCIAL SERVICES 13.8%
BANGKOK BANK (THAILAND)
Provider of banking services 55,000 586,368
BANK INTERNASIONAL (INDONESIA)
Provider of banking services 424,000 682,609
COMMERCIAL INTERNATIONAL BANK+ (EGYPT)
Provider of banking services 30,000 431,400
FINANCE ONE PUBLIC COMPANY (THAILAND)
Provider of financial services 50,200 141,669
GRUPO FINANCIERO BANAMEX ACCIVAL
(CLASS B) (MEXICO)
Provider of banking services 131,000 278,437
GUANGDONG INVESTMENTS (CHINA)
Diversified company investing
in China 940,000 674,702
KOMERCNI BANKA (GDRS) (CZECH REPUBLIC)
Provider of banking services 23,000 572,125
KOREA EXCHANGE BANK (SOUTH KOREA)
Provider of banking services 47,000 461,325
MALAYAN BANKING (MALAYSIA)
Provider of banking services 64,000 633,162
METROPOLITAN BANK & TRUST (PHILIPPINES)
Provider of banking services 25,000 551,750
STATE BANK OF INDIA (GDRS) (INDIA)
Provider of banking services 29,600 436,600
ZAGREBACKA BANKA (GDRS)*+ (CROATIA)
Provider of banking services 35,000 651,875
---------
6,102,022
---------
INDUSTRIAL GOODS AND SERVICES 4.4%
ALFA (MEXICO)
Producer of steel, chemicals, and
food products 154,300 640,819
SKODA PLZEN (CZECH REPUBLIC)
Manufacturer of engineering
equipment 19,000 603,700
UNITED ENGINEERS (MALAYSIA)
Construction, principally
managing expressways 88,000 696,478
---------
1 ,940,997
---------
- ----------
See footnotes on page 42.
26
<PAGE>
- --------------------------------------------------------------------------------
EMERGING MARKETS GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
SHARES VALUE
------ -----
LEISURE AND HOTELS 2.5%
GRUPO TELEVISA (GDRS)* (MEXICO)
Provider of television and other
media services 19,300 $ 506,625
SHANGRI-LA ASIA (CHINA)
Developer of hotels and associated
properties 420,000 600,210
----------
1,106,835
----------
MANUFACTURING 5.0%
CROMPTON GREAVES (GDRS)+ (INDIA)
Manufacturer of power generation
equipment 130,000 560,300
FRASER & NEAVE HOLDINGS (MALAYSIA)
Manufacturer of glass bottles and
glass products 126,000 638,227
SAMSUNG ELECTRONICS (GDRS)+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 14,325 1,007,301
----------
2,205,828
----------
METALS 7.1%
CHINA STEEL (GDRS) (TAIWAN)
Producer of steel and steel products 24,500 468,440
COMPANHIA VALE DO RIO DOCE (ADRs) (Brazil)
Producer of iron ore and gold;
transport operator 39,000 819,940
HINDALCO INDUSTRIES (GDRS)+ (INDIA)
Producer of aluminum and
aluminum products 45,000 781,650
POHANG IRON & STEEL (ADRS) (SOUTH KOREA)
Producer of steel and steel
products 24,000 498,000
USINAS SIDERURGICAS DE MINAS GERAIS
(ADRS)+ (BRAZIL)
Producer of steel and steel products 51,600 537,398
----------
3,105,428
----------
RESOURCES 8.7%
ANGLO-AMERICAN CORPORATION OF SOUTH AFRICA
(SOUTH AFRICA)
Producer of a wide variety of
minerals 10,000 600,979
EXPLORATION & PRODUCTION (THAILAND)
Producer of oil and gas 43,000 616,862
GAZPROM (ADRS)*+ (RUSSIA)
Producer of natural gas 41,750 730,625
GENCOR (SOUTH AFRICA)
Holding company with interests in
gold, platinum, and coal mining 172,500 598,691
PEREZ (ADRS) (ARGENTINA)
Producer of oil and gas, and
provider of energy services 61,600 776,252
QUIMICA MINERA CHILE (ADRS) (CHILE)
Producer of fertilizer and iodine;
manufacturer of industrial chemicals 8,500 488,750
----------
3,812,159
----------
RETAILING 10.8%
BOMPRECO SUPERMERCADOS NORDE
(GDRS)* (BRAZIL)
Large retailer of food and
consumer products 19,900 $ 328,350
CIFRA (ADRS)* (MEXICO)
Retailer of food and consumer
products 364,250 464,564
DISCO (ADRS)* (ARGENTINA)
Retailer of food and consumer
products 36,000 810,000
JERONIMO MARTINS (PORTUGAL)
Retailer of food and consumer
products 7,000 636,612
MATAHARI PUTRA PRIMA RIGHTS* (INDONESIA)
Retailer of consumer products 136,000 59,116
METRO CASH & CARRY (SOUTH AFRICA)
Retailer of food and consumer
products 202,000 602,150
MIGROS TURK (TURKEY)
Retailer of food and consumer
products 725,000 729,740
SANTA ISABEL (ADRS) (CHILE)
Retailer of food and consumer
products 22,500 632,813
SM PRIME HOLDINGS (PHILIPPINES)
Developer and operator of
retail properties 2,400,000 511,416
-----------
4,774,761
-----------
TELECOMMUNICATIONS 7.3%
PORTUGAL TELECOM (PORTUGAL)
Provider of telecommunications
services 6,000 155,570
PORTUGAL TELECOM (ADRS) (PORTUGAL)
Provider of telecommunications
services 18,000 465,750
SPT TELECOM* (CZECH REPUBLIC)
Provider of telecommunications
services 4,900 523,028
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 19,700 1,457,286
TELEFONICA DEL PERU (PERU)
Provider of telecommunications
services 30,000 618,750
-----------
3,220,384
-----------
MISCELLANEOUS 4.8%
FORMOSA FUND* (TAIWAN)
Closed-end fund investing in Taiwan 90 795,420
TAIPEI FUND* (TAIWAN)
Closed-end fund investing in Taiwan 90 756,000
TAIWAN OPPORTUNITIES FUND* (TAIWAN)
Closed-end fund investing in Taiwan 53,000 557,560
-----------
2,108,980
-----------
TOTAL INVESTMENTS 91.7% 40,389,823
(Cost $41,301,272 )
OTHER ASSETS LESS LIABILITIES 8.3% 3,679,635
-----------
NET ASSETS 100.0% $44,069,458
===========
- -----------
See footnotes on page 42.
27
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS October 31, 1996
SHARES VALUE
------ -----
COMMON STOCKS 98.1%
AEROSPACE 1.5%
BOEING (US)
Aerospace manufacturer 6,900 $ 658,088
ROLLS ROYCE (UK)
Aerospace; power generation,
transmission, and distribution
systems 450,000 1,860,175
-----------
2,518,263
-----------
AUTOMOTIVE AND RELATED 4.1%
AUTOLIV (SWEDEN)
Manufacturer and worldwide retailer
of automobile airbags and other
safety equipment 46,550 1,973,462
PORSCHE* (GERMANY)
Manufacturer of luxury sportscars 2,480 1,683,572
TATA ENGINEERING AND LOCOMOTIVE
(GDRS) (INDIA)
Manufacturer of commercial
automotive vehicles 80,000 1,080,000
VALEO (FRANCE)
Manufacturer of automotive
components 38,460 2,303,943
-----------
7,040,977
-----------
BUSINESS GOODS AND SERVICES 3.8%
FIRST DATA (US)
Information processing 20,200 1,610,950
INTERPUBLIC GROUP OF COMPANIES (US)
Global advertising through
three agencies in various countries 36,900 1,789,650
TOMRA SYSTEMS (NORWAY)
Provider of recycling systems,
mainly for beverage cans 90,000 1,273,850
WPP GROUP (UK)
Provider of worldwide marketing
services, including advertising,
public relations, and market research 500,000 1,855,293
-----------
6,529,743
-----------
COMPUTER AND
TECHNOLOGY RELATED 5.2%
ELECTRONIC DATA SYSTEMS (US)
Computer systems and services 15,000 675,000
INFORMIX* (US)
Designer, manufacturer, and supporter
of database management systems 51,300 1,138,219
MICROSOFT* (US)
Producer of microcomputer software 16,900 2,320,581
PARITY (UK)
Software and consultancy 300,000 1,628,264
STERLING COMMERCE* (US)
Developer of electronic data
interchange software 41,248 1,160,109
STERLING SOFTWARE* (US)
Computer software; management
of data processing software 25,900 841,750
COMPUTER AND
TECHNOLOGY RELATED (CONTINUED)
3COM* (US)
Supplier of adapter cards, hubs, and
routers for local area computer
networks 15,000 $ 1,015,312
-----------
8,779,235
-----------
CONSUMER GOODS AND
SERVICES 13.4%
ADIDAS (GERMANY)
Manufacturer of sporting goods 27,080 2,275,630
APCOA PARKING* (GERMANY)
Operator of parking garages
throughout Europe 11,000 1,109,244
ASSA ABLOY (SERIES B) (SWEDEN)
Developer, manufacturer, and
marketer of mechanical locks for
doors and windows 120,000 1,841,651
COCA-COLA AMATIL (AUSTRALIA)
Manufacturer and marketer of
Coca-Cola products for Australia,
the Pacific, and Eastern Europe 156,000 2,142,680
GUANGNAN HOLDINGS (HONG KONG)
Distributor of live and fresh
food products 1,250,000 848,712
LIZ CLAIBORNE (US)
Designer and distributor of
women's apparel 43,000 1,816,750
MODERN PHOTO FILM (INDONESIA)
Producer and distributor of Fuji
photo film and other photographic
materials 84,000 224,037
OAKLEY* (US)
Manufacturer of designer sunglasses
and goggles 88,800 1,320,900
PEPSICO (US)
Soft drinks, snack foods, and
restaurants 20,000 592,500
PROCTER & GAMBLE (US)
Manufacturer of household products 17,800 1,762,200
PUMA* (GERMANY)
Manufacturer and marketer of footwear
and other sporting goods 21,340 629,405
RAISION TEHTAAT (FINLAND)
Processor and marketer of
agricultural products 24,000 1,431,433
SERM SUK (THAILAND)
Manufacturer and distributor of
Pepsi-Cola drinks under franchise 96,700 2,956,375
SMH NEUENBERG (SWITZERLAND)
Watch manufacturer of brands
including Swatch and Omega 13,000 1,819,795
SOUTH AFRICAN BREWERIES (SOUTH AFRICA)
Investor in the beverage, retail, and
hotel industries 39,149 1,016,965
WANT WANT HOLDINGS* (SINGAPORE)
Manufacturer of rice crackers 418,000 1,028,280
-----------
22,816,557
-----------
- ----------
See footnotes on page 42.
28
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS October 31, 1996
SHARES VALUE
------ -----
DISTRIBUTORS 1.2%
RYOYO ELECTRO (Japan)
Distributor of electronic goods 118,000 $ 2,091,795
-----------
DIVERSIFIED 1.2%
CITIC PACIFIC* (HONG KONG)
Holding company with interests
in Cathay Pacific Airlines,
telecommunications, and
power stations 432,000 2,100,694
-----------
DRUGS AND HEALTH CARE 9.4%
AMGEN* (US)
Biotechnology company 7,500 459,844
ARTERIAL VASCULAR ENGINEERING* (US)
Manufacturer of coronary
care equipment 54,000 833,625
BRITISH BIOTECH* (UK)
Biotechnology company 300,000 1,105,852
COLUMBIA/HCA HEALTHCARE (US)
Provider of medical services in
several specialty hospitals 43,650 1,560,487
GEDEON RICHTER (HUNGARY)
Manufacturer of pharmaceuticals;
cosmetics; and pesticides 53,000 2,862,000
GUIDANT (US)
Health care products, cardiac rhythm
management, and catheters 38,000 1,752,750
HOGY MEDICAL (JAPAN)
Largest producer of disposable
surgical gowns and medical supplies 34,600 1,563,756
PFIZER (US)
Ethical drugs; hospital products; and
specialty chemicals 22,200 1,837,050
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 50,600 1,764,566
ROUSSEL UCLAF (FRANCE)
Pharmaceutical, chemical, and
agroveterinary products 4,435 1,171,652
UNITED HEALTHCARE (US)
Owner and manager of HMO and
specialty managed care centers 27,900 1,056,713
-----------
15,968,295
-----------
ELECTRIC AND GAS UTILITIES 1.2%
GAZPROM (ADRS)*+ (RUSSIA)
Producer of natural gas 75,000 1,312,500
HUANENG POWER INTERNATIONAL* (CHINA)
Developer and manufacturer of
coal-fired power plants 45,000 686,250
-----------
1,998,750
-----------
ELECTRONICS 8.2%
ADAPTEC* (US)
Manufacturer of computer
data-flow systems 10,000 608,125
ELECTRONICS (CONTINUED)
DAITEC (JAPAN)
Developer of point-of-sale systems
for Nippon Oil Company 20,900 $ 1,219,702
INTEL (US)
Microprocessors and FLASH
memory circuits 17,000 1,866,813
KEYENCE (JAPAN)
Manufacturer of detection devices
and measuring control equipment 19,500 2,258,885
KYOCERA (JAPAN)
Supplier of semiconductor packaging,
capacitors, and cellular components 38,000 2,504,432
NIHON DEMPA KOGYO (JAPAN)
Manufacturer of quartz electronic
parts in Malaysia and China 65,000 1,357,613
SAMSUNG ELECTRONICS (GDRS)+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 4,700 330,493
SAMSUNG ELECTRONICS (GDRS)* (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 23,270 1,062,276
SGS-THOMSON MICROELECTRONICS* (FRANCE)
Manufacturer of semiconductor
integrated circuits 51,770 2,738,383
-----------
13,946,722
-----------
ENTERTAINMENT AND LEISURE 10.7%
ACCOR (FRANCE)
Hotel operator and provider
of related services 16,763 2,101,328
CAPITAL RADIO (UK)
Radio broadcasting company 125,000 1,187,021
GRANADA GROUP (UK)
Television group with additional
leisure interests including hotels 128,800 1,854,050
HIS (JAPAN)
Travel agency specializing in
overseas and package tours 34,100 1,807,495
INDIAN HOTELS (GDRS)* (INDIA)
Owner, operator, and manager of
luxury hotels 70,000 1,636,250
INTERNATIONAL GAME TECHNOLOGY (US)
Designer and manufacturer of
video games 60,000 1,267,500
SABRE GROUP HOLDINGS* (US)
Travel reservations system provider 51,200 1,561,600
SOL MELIA* (SPAIN)
Hotel manager and franchise
company 77,226 2,052,307
SUN INTERNATIONAL HOTELS* (US)
Operator of resort and
casino hotels 42,000 1,984,500
TELEVISION BROADCASTING (HONG KONG)
Television broadcasting,
production, and licensing group 444,000 1,556,122
VIACOM (CLASS B) (US)
Diversified entertainment
communications company 39,300 1,282,163
-----------
18,290,336
-----------
- ----------
See footnotes on page 42.
29
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
FINANCIAL SERVICES 7.2%
AMERICAN INTERNATIONAL GROUP (US)
Commercial and industrial insurer 16,500 $ 1,792,313
DONALDSON, LUFKIN & JENRETTE (US)
Investment and merchant bank 48,100 1,545,213
MALAYSIA ASSURANCE (MALAYSIA)
Provider of life and general
insurance 33,000 161,931
MANHATTAN CARD (HONG KONG)
Operator of credit card business 3,530,000 1,746,214
MBNA (US)
Issuers of credit cards; deposit,
loan, and transaction processing 60,100 2,268,775
MEDIOLANUM* (ITALY)
Life insurer; provider of a wide
range of financial services 124,000 1,228,414
SANYO SHINPAN FINANCE (JAPAN)
Consumer finance company 39,000 2,368,407
STATE BANK OF INDIA (GDRS)* (INDIA)
Provider of banking services 73,800 1,088,550
-----------
12,199,817
-----------
INDUSTRIAL GOODS AND
SERVICES 1.2%
ABB (SWEDEN)
Manufacturer of heavy equipment
for electric power generation and
distribution 1,626 2,003,006
-----------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT 4.5%
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 200,000 2,071,084
DOMNICK HUNTER GROUP (UK)
Manufacturer of filtration,
purification, and separation
products 200,000 1,298,705
KALMAR INDUSTRIES (SWEDEN)
Manufacturer of forklifts and
special lift trucks 83,600 1,295,721
LARSEN & TOUBRO (GDRS) (INDIA)
Producer of engineering
equipment 76,000 1,102,000
SIEBE (UK)
Designer and manufacturer of
control devices and process
control technology 115,000 1,808,870
-----------
7,576,380
-----------
PAPER AND PACKAGING 0.3%
BOBST (SWITZERLAND)
Manufacturer of machinery for the
paper and package industries 410 529,314
-----------
PUBLISHING 2.1%
ELSEVIER (NETHERLANDS)
Global printer and publisher of
professional trade journals and
magazines 122,250 $ 2,027,971
SINGAPORE PRESS HOLDING (SINGAPORE)
Newspaper publisher, printer, and
distributor 93,000 1,545,048
-----------
3,573,019
-----------
RESOURCES 1.6%
GENCOR (SOUTH AFRICA)
Holding company with interests in
gold, platinum, and coal mining 367,000 1,273,736
WMC (AUSTRALIA)
Mineral and petroleum producer 232,500 1,459,585
-----------
2,733,321
-----------
RESTAURANTS 1.2%
PIZZA EXPRESS (UK)
Restaurant operator in the UK 245,000 2,055,429
-----------
RETAIL TRADE 5.8%
HOME DEPOT (US)
Retailer of home improvement
products and building materials 33,800 1,850,550
JOSHIN DENKI (JAPAN)
Budget electrical appliance retailer 178,000 2,186,924
SAKS HOLDINGS* (US)
Worldwide fashion retailer 50,000 1,750,000
SHIMACHU (JAPAN)
Furniture retailer 85,000 2,334,796
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer of jewelry 56,000 1,764,283
-----------
9,886,553
-----------
SUPPORT SERVICES 4.3%
CRT GROUP (UK)
Provider of training and recruitment
services; publisher of multimedia
products 250,000 1,055,808
RENTOKIL (UK)
Provider of commercial services
such as pest control and office
maintenance 265,000 1,779,006
SECOM (JAPAN)
Security services pioneer 41,000 2,439,491
S.I.T.A. (FRANCE)
Collection, cleaning, and waste
recycling services 9,800 2,014,937
-----------
7,289,242
-----------
- ----------
See footnotes on page 42.
30
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
TELECOMMUNICATIONS 5.7%
DDI (JAPAN)
Long distance and mobile
telecommunications services 295 $ 2,213,471
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Global telecommunications
equipment and systems, wired
and mobile 97,950 2,649,288
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 22,000 1,627,426
TELEFONICA DEL PERU (PERU)
Provider of telecommunications
services 60,000 1,237,500
WORLDCOM* (US)
Provider of interstate long distance
telecommunications services 81,200 1,984,325
-----------
9,712,010
-----------
TOBACCO 1.0%
TABACALERA (SPAIN)
Manufacturer and marketer of
tobacco products 48,400 $ 1,769,299
-----------
TRANSPORTATION 3.3%
KOBENHAVNS LUFTHAVNE (DENMARK)
Operator of Copenhagen airport 20,100 2,086,475
LUFTHANSA (GERMANY)
Airline services worldwide;
operator of Penta hotels 164,000 2,140,188
METACORP (MALAYSIA)
Constructor and operator
of toll roads 470,000 1,432,133
-----------
5,658,796
-----------
TOTAL INVESTMENTS 98.1%
(Cost $152,918,544) 167,067,553
OTHER ASSETS LESS LIABILITIES 1.9% 3,239,011
-----------
NET ASSETS 100.0% $170,306,564
===========
- ----------
See footnotes on page 42.
31
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS October 31, 1996
SHARES VALUE
------ -----
COMMON STOCKS 96.2%
ADVERTISING 2.0%
ASATSU (JAPAN)
Advertising agency 99,100 $ 3,661,351
HERITAGE MEDIA (CLASS A)* (US)
Broadcasting and in-store advertising 110,000 1,677,500
KATZ MEDIA GROUP* (US)
Advertising broker 90,000 753,750
SNYDER COMMUNICATIONS (US)
Provider of marketing services 50,700 988,650
UNIVERSAL OUTDOOR HOLDINGS* (US)
Outdoor advertising such as billboards 255,000 7,442,813
-----------
14,524,064
-----------
AUTOMOTIVE PARTS
MANUFACTURING 3.1%
DURA AUTOMOTIVE SYSTEMS (CLASS A)* (US)
Designer and manufacturer
of assembly systems and
automotive parts 53,500 1,263,938
ECIA (FRANCE)
Manufacturer of automobile
components 5,301 714,190
FUTURIS (AUSTRALIA)
Mini-conglomerate with interests in
building materials, automobile
components, and financial services 1,908,282 2,417,106
KOITO MANUFACTURING (JAPAN)
Maker of automotive lighting
equipment 102,000 689,250
MONTUPET (FRANCE)
Manufacturer of automobile
components 19,592 2,517,165
NIPPON SEIKI (JAPAN)
Manufacturer of automobile
components 205,700 2,599,456
NOKIAN TYRES* (FINLAND)
Manufacturer of tires 323,340 6,184,001
SYLEA (FRANCE)
Manufacturer of automobile
components 56,020 6,464,540
-----------
22,849,646
-----------
BUILDING MATERIALS 2.6%
APOGEE ENTERPRISES (US)
Manufacturer and distributor of
energy-efficient aluminum
window systems 150,000 5,756,250
DANTO (JAPAN)
Manufacturer of wall and floor tiles 334,000 3,693,199
GUJURAT AMBUJA CEMENT (GDSS) (INDIA)
Cement producer 200,000 1,700,000
MALAYAN CEMENT (MALAYSIA)
Cement producer 975,000 2,179,957
MULIA INDUSTRINDO (INDONESIA)
Manufacturer of ceramic tiles
and glass 2,080,100 1,964,633
POLYPIPE (UK)
Manufacturer of plastic piping and
molded plastic products 1,300,000 4,284,262
-----------
19,578,301
-----------
BUSINESS SERVICES 3.9%
BISYS GROUP* (US)
Data processing service for banks 50,000 $ 1,865,625
CORT BUSINESS SERVICES* (US)
Rentor of furniture 140,000 2,940,000
FACTSET RESEARCH SYSTEMS* (US)
Provider of on-line database services
to the financial community 250,000 6,000,000
IBC GROUP (UK)
Business communications 770,000 3,696,753
ISA INTERNATIONAL (UK)
Distributor of computer
consumables 1,201,803 4,077,998
LASON* (US)
Provider of record management
services 40,000 695,000
NU-KOTE HOLDINGS (CLASS A)* (US)
Manufacturer of products for
printing equipment 100,000 956,250
SERVICE EXPERTS* (US)
Provider of air-conditioning
equipment and services 120,000 3,150,000
SITEL* (US)
Telemarketer 100,000 1,968,750
SKILLED ENGINEERING (AUSTRALIA)
Provider of personnel placement
and outsourcing services 652,000 2,064,623
SOURCE SERVICES* (US)
Specialty staffing services 75,000 1,256,250
-----------
28,671,249
-----------
CAPITAL GOODS 2.5%
BT INDUSTRIES (SWEDEN)
Manufacturer of forklifts 239,800 4,117,489
FUSION SYSTEMS* (US)
Manufacturer of ultraviolet
curing systems 70,000 1,268,750
INDUSTRIA MACCHINE AUTOMATION (ITALY)
Packaging machinery 525,000 2,082,455
IRO* (SWEDEN)
Manufacturer of textile machinery 278,730 3,176,507
KALMAR INDUSTRIES* (SWEDEN)
Manufacturer of forklifts and
special lift trucks 119,900 1,858,336
KCI KONECRANES INTERNATIONAL* (FINLAND)
Manufacturer of cranes and other
heavy-duty lifting equipment 150,000 4,126,593
NAMURA SHIPBUILDING (JAPAN)
Shipbuilder 229,000 852,093
PHOTON DYNAMICS* (US)
Semiconductor test equipment 100,000 675,000
-----------
18,157,223
-----------
CHEMICALS 0.6%
CHEMICAL COMPANY OF MALAYSIA (MALAYSIA)
Producer of industrial chemicals
and pharmaceuticals 425,000 1,303,423
CHEMICAL COMPANY OF MALAYSIA
WARRANTS* (MALAYSIA)
Producer of industrial chemicals
and pharmaceuticals 53,250 60,478
- ----------
See footnotes on page 42.
32
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
CHEMICALS (CONTINUED)
TOSHIBA CHEMICAL (JAPAN)
Producer of synthetic resin molded
products and insulating materials 14,000 $ 98,412
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 655,000 3,299,430
-----------
4,761,743
-----------
COMPUTER SOFTWARE 4.2%
DENDRITE INTERNATIONAL* (US)
Sales management and software 275,000 7,321,875
F.I. GROUP* (UK)
Designer and builder of
software applications 425,100 2,916,059
FUJITSU BUSINESS SYSTEMS (JAPAN)
Distributor of computer equipment 133,000 3,361,474
HITACHI INFORMATION SYSTEMS (JAPAN)
Leading data processing firm 38,000 486,880
KEWILL SYSTEMS (UK)
Computer systems and services
company 235,000 1,807,080
MENTOR GRAPHICS* (US)
Computer-aided engineering
systems 200,000 1,687,500
NATIONAL PROCESSING* (US)
Provider of low-cost transaction
processing services 46,500 883,500
PARITY (UK)
Software and consultancy 890,800 4,834,858
POMEROY COMPUTER RESOURCES* (US)
Provider of professional
computer services 138,000 3,156,750
SOFTWARE 2000* (US)
Developer and marketer of
business software applications 182,800 1,302,450
SYNOPSYS* (US)
Integrated circuit design software 70,000 3,167,500
-----------
30,925,926
-----------
CONSTRUCTION AND
PROPERTY 7.5%
ASAS DUNIA (MALAYSIA)
Property developer 68,000 244,875
ASHTEAD GROUP (UK)
Equipment rentor for the
construction sector 1,355,000 5,149,130
BAU HOLDINGS (AUSTRIA)
Construction and civil engineering 22,276 1,398,185
BAU HOLDINGS (VOTING PREFERENCE SHARES)
(AUSTRIA)
Construction and civil engineering 103,250 4,884,655
BUKIT SEMBAWANG ESTATES (SINGAPORE)
Property developer 62,000 1,448,207
DANSKE TRAELASTKOMPAGNI (DENMARK)
Timber supply company 75,670 6,296,907
HIGASHI NIHON HOUSE (JAPAN)
House builder 253,000 3,641,246
CONSTRUCTION AND
PROPERTY (CONTINUED)
KAMPA-HAUS (GERMANY)
Residential construction 160,832 $ 5,618,122
MITSUI HOME (JAPAN)
House builder 214,000 2,854,585
NEW ASIA REALTY (HONG KONG)
Holding company with interests in
property and real estate 821,000 3,344,606
NISHIO RENT ALL (JAPAN)
Rentor of construction equipment 104,800 1,940,570
PLETTAC (GERMANY)
Manufacturer of scaffolding,
lightweight construction sheds,
and related products 19,290 3,896,777
SIME UEP PROPERTIES (MALAYSIA)
Property company involved in both
investment and development 403,000 1,108,370
STO* (GERMANY)
Producer and marketer of
building materials 7,000 3,400,231
THORKILD KRISTENSE (DENMARK)
Property development 67,250 4,788,530
TILBURY DOUGLAS (UK)
Small contractor 448,100 3,675,472
TIPCO ASPHALT (THAILAND)
Manufacturer and distributor of
asphalt emulsion 272,000 1,471,250
-----------
55,161,718
-----------
CONSUMER GOODS AND
SERVICES 4.9%
AMERICAN DISPOSAL SERVICES* (US)
Provider of pollution control
equipment 175,000 2,800,000
CANANDAIGUA WINE (CLASS A)* (US)
Wine, imported beer, and
distilled spirits 150,000 3,431,250
CHILDTIME LEARNING CENTERS* (US)
Provider of childcare services 225,000 2,671,875
EKORNES (NORWAY)
Manufacturer of home furnishings 299,700 6,562,089
FINE HOST* (US)
Provider of catering services 196,000 2,793,000
LA DORIA (ITALY)
Producer of food, specializing in
canned tomatoes, fruits,
and fruit juices 857,766 3,159,370
OPTA FOOD INGREDIENTS* (US)
Manufacturer of food additives 215,000 1,773,750
ST. JOHN KNITS (US)
Apparel manufacturer 70,000 3,202,500
SORINI (INDONESIA)
Manufacturer of Sorbitol and
Maltodextrin, etc. 675,000 347,744
STEINWAY MUSICAL INSTRUMENTS* (US)
Manufacturer of musical equipment 90,000 1,597,500
TARKETT (GERMANY)
Manufacturer and distributor of
hardwood flooring 98,650 2,129,371
TEAM RENTAL GROUP* (US)
Owner and operator of Budget
Rent-a-Car franchises 203,000 3,857,000
- ----------
See footnotes on page 42.
33
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
CONSUMER GOODS AND
SERVICES (continued)
WANT WANT HOLDINGS (SINGAPORE)
Manufacturer of rice crackers 766,000 $ 1,884,360
-----------
36,209,809
-----------
DRUGS AND HEALTH CARE 6.3%
AMERICAN ONCOLOGY RESOURCES* (US)
Provider of management services
to oncology practices 100,000 793,750
AMERISOURCE HEALTH (CLASS A)* (US)
Wholesale distributor of
pharmaceuticals 150,000 6,356,250
CARDIOVASCULAR DYNAMICS* (US)
Designer, developer, and
manufacturer of catheters
used for vascular diseases 61,500 799,500
CHIROSCIENCE GROUP (UK)
Pharmaceutical company specializing
in pharmaceuticals for cancer, pain,
and inflammatory disorders 80,000 463,498
COLLABORATIVE CLINICAL RESEARCH* (US)
Manager of clinical research network 52,000 721,500
DARYA VARIA LAB (INDONESIA)
Manufacturer of generic
pharmaceuticals 752,560 1,122,718
FPA MEDICAL MANAGEMENT* (US)
Provider of regional health care
management services 200,000 3,762,500
GENERAL SURGICAL INNOVATIONS* (US)
Developer of surgical devices 22,000 156,750
HORIZON MENTAL HEALTH
MANAGEMENT* (US)
Psychiatric care provider 150,000 3,956,250
INTENSIVA HEALTHCARE* (US)
Provider of acute long-term care
for the critically ill 225,000 1,603,125
MEDICIS PHARMACEUTICAL (CLASS A)* (US)
Developer of skin care products 100,000 5,025,000
PEPTIDE THERAPEUTICS (UK)
Biopharmaceutical development
company 130,000 400,922
SHIRE PHARMACEUTICALS* (UK)
Biotechnology company specializing
in metabolic bone diseases and
Alzheimer's diseases 175,000 562,487
TAMRO (FINLAND)
Health care wholesaler for
Scandinavia and the Baltic states 748,500 5,436,208
TOTAL RENAL CARE HOLDINGS* (US)
Provider of dialysis services 55,000 2,145,000
TOWA PHARMACEUTICAL (JAPAN)
Large generic drug wholesaler 58,000 951,821
VANGUARD MEDICA GROUP (UK)
Emerging biopharmaceutical
company planning to develop and
commercialize new drugs 61,500 495,437
DRUGS AND HEALTH CARE (CONTINUED)
WATERS* (US)
Manufacturer of liquid
chromatography instruments 244,000 $ 7,564,000
WATSON PHARMACEUTICALS* (US)
Manufacturer of off-patent
medications 125,000 4,156,250
-----------
46,472,966
-----------
ELECTRIC UTILITIES 1.9%
CALENERGY* (US)
Developer of geothermal
energy power 425,000 12,325,000
CENTRAL COSTANERA (ADSS)+ (ARGENTINA)
Electrical power generation
company 20,000 630,000
OKINAWA ELECTRIC POWER (JAPAN)
Supplier of electricity to
Okinawa Island 54,500 1,353,532
-----------
14,308,532
-----------
ELECTRICAL DISTRIBUTION 0.9%
ABACUS POLAR (UK)
Distributor of electronic components 717,500 1,798,251
REXEL (FRANCE)
European electrical distributor 7,155 2,116,554
TRIFAST (UK)
Manufacturer and distributor of
fasteners for the electronics
industry 349,000 2,405,395
-----------
6,320,200
-----------
ELECTRONICS 5.1%
BERG ELECTRONICS* (US)
Manufacturer of electronic
connectors 350,000 9,887,500
BMC INDUSTRIES (US)
Television aperture masks 200,000 5,925,000
ELECTRO SCIENTIFIC INDUSTRIES* (US)
Laser trimming systems, memory
repair systems, and test and
production equipment 120,000 2,430,000
ENPLAS (JAPAN)
Manufacturer of electronic
components and engineering plastics 39,000 759,807
FAIREY GROUP (UK)
Electrical and electronic engineering 250,000 2,780,905
FOSTER ELECTRIC (JAPAN)
Speaker manufacturer with
worldwide production 122,000 572,795
HORIBA INSTRUMENTS (JAPAN)
Manufacturer of instruments
and analyzers 322,000 3,560,509
LOJACK* (US)
Manufacturer of stolen vehicle
tracking devices 400,000 4,200,000
OTRA (NETHERLANDS)
Holding company for various technical
product wholesale companies 217,930 4,076,693
- ----------
See footnotes on page 42.
34
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
ELECTRONICS (continued)
RYOYO ELECTRO (JAPAN)
Distributor of electronic goods 191,000 $ 3,385,871
-----------
37,579,080
-----------
FINANCIAL SERVICES 6.1%
CENTRALE POUR L'INDUSTRIE (FRANCE)
Diversified holding company with
interests in financial services
and insurance 5,743 361,079
FINNVEDEN (SERIES B)* (SWEDEN)
Industrial conglomerate 357,550 5,161,372
FOKUS BANK (NORWAY)
Provider of banking services 647,000 3,764,216
FUJI FIRE AND MARINE INSURANCE (JAPAN)
Non-life insurance firm 687,000 3,116,972
HAMBRECHT & QUIST GROUP* (US)
Investment bank 100,000 1,987,500
ICHIYOSHI SECURITIES (JAPAN)
Kansai-based securities business 602,000 2,932,075
JAYHAWK ACCEPTANCE* (US)
Consumer finance company 125,000 1,757,813
MANHATTAN CARD (HONG KONG)
Operator of credit card business 4,815,000 2,381,875
MUTUAL RISK MANAGEMENT (US)
Provider of risk management
services to insurance brokers 85,066 2,722,112
NEWCOURT CREDIT GROUP (CANADA)
Financial services company 60,000 1,863,591
NISSHIN FIRE & MARINE INSURANCE (JAPAN)
Non-life insurance company 404,000 1,786,889
T. ROWE PRICE (US)
Investment advisor to the
T. Rowe Price mutual funds and
institutional money managers 60,000 2,040,000
PROTECTOR FORSIKRING* (NORWAY)
Provider of non-life insurance
policies 44,800 1,572,975
ROOSEVELT FINANCIAL GROUP (US)
Largest St. Louis-based savings
institution 360,000 6,232,500
SOUTHERN BANK (MALAYSIA)
Commercial bank 480,000 1,548,081
SSANGYONG INVESTMENT (SOUTH KOREA)
Securities firm 80,000 1,219,970
UNIONAMERICA HOLDINGS (ADRS) (UK)
Provider of property and casualty
reinsurance 200,000 3,725,000
WORLD ACCEPTANCE* (US)
Small-loan consumer financier 90,000 585,000
-----------
44,759,020
-----------
INDUSTRIAL GOODS AND
SERVICES 6.1%
ANGPANNEFORENINGEN (CLASS B) (SWEDEN)
Engineering consultancy 165,750 2,669,711
ASSYSTEM (FRANCE)
Global industrial consultant for the
nuclear, steel, oil, automobile,
space, and transportation industries 78,780 6,799,004
INDUSTRIAL GOODS
AND SERVICES (CONTINUED)
BACOU USA* (US)
Designer and manufacturer of
personal protective gear 125,000 $ 2,085,938
DRILEX INTERNATIONAL (US)
Provider of precision drilling
products and services 150,000 2,493,750
DRUCK HOLDINGS (UK)
Worldwide engineering group 300,000 1,611,176
FINNING (CANADA)
Lessor of construction equipment 80,000 1,597,790
FORSHEDA (SWEDEN)
Manufacturer of automobile
components 187,896 6,452,541
KARDEX (SWITZERLAND)
Manufacturer and distributor of
industrial storage and retrieval
systems 1,839 532,266
KOMORI (JAPAN)
Top maker of offset
printing machines 157,000 3,527,161
MAXIM INTEGRATED PRODUCTS* (US)
Manufacturer of linear and
mixed-signal integrated circuits 50,000 1,759,375
MEMTEC (ADRS) (AUSTRALIA)
Researcher, developer, and
producer of filtration and
separation products 150,000 5,146,875
MITSUBISHI CABLE INDUSTRIES (JAPAN)
Maker of electrical wires and cables 332,000 1,823,888
NATIONAL OILWELL (US)
Designer and manufacturer of
oil and gas drilling equipment 60,000 1,395,000
PRINTRAK INTERNATIONAL* (US)
Designer, developer, and
manufacturer of automated
fingerprint identification systems 195,000 1,986,562
TECHNIP* (FRANCE)
Engineering contractors 33,390 2,913,626
THERMO FIBERGEN* (US)
Developer of equipment that
recovers materials from pulp
mill residue 39,000 492,375
VISUAL ACTION HOLDINGS (UK)
Rentor of cameras and related
equipment 565,000 2,110,274
-----------
45,397,312
-----------
LEISURE AND HOTELS 2.5%
ALLIED LEISURE (UK)
UK's largest bowling alley operator 4,100,000 3,569,812
CAPSTAR HOTEL* (US)
Owner and renovator of hotels 49,000 882,000
GTECH HOLDINGS* (US)
Operator of state and local
lottery systems 150,000 4,425,000
MANDARIN ORIENTAL* (HONG KONG)
Operator and manager of
hotels in the Pacific 1,200,000 1,620,000
- ----------
See footnotes on page 42.
35
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
LEISURE AND HOTELS (CONTINUED)
SANKYO (JAPAN)
Manufacturer of pachinko
game equipment 98,000 $ 3,405,704
SUN INTERNATIONAL HOTELS* (US)
Operator of resort and casino hotels 100,000 4,725,000
-----------
18,627,516
-----------
MANUFACTURING 12.8%
AGCO (US)
Manufacturer of farm equipment 66,000 1,674,750
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 337,000 3,489,776
BRITISH POLYTHENE INDUSTRIES (UK)
Manufacturer and converter of
polythene 250,000 2,974,165
COBHAM (UK)
High-integrity engineering 330,000 3,187,442
DAVID BROWN GROUP (UK)
Diversified engineering company;
manufacturer of transmission
equipment and pumps 1,097,332 4,366,410
DOMNICK HUNTER (UK)
Manufacturer of filtration,
purification, and separation products 575,700 3,738,323
L'EUROPEENNE D'EXTINCTEURS (FRANCE)
Seller and distributor of fire
extinguishers 131,660 7,737,977
GERRY WEBER INTERNATIONAL* (GERMANY)
Designer and manufacturer of
ladies' apparel 2,854 109,100
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 132,000 3,394,120
HOKKAI CAN (JAPAN)
Manufacturer of cans for
the food industry 402,000 2,667,065
HOKUSHIN (JAPAN)
Producer of fiber board 287,000 2,669,767
HUCKE (GERMANY)
Manufacturer of textiles
and clothing 231,850 4,446,752
INDUSTRIE NATUZZI (ADRS)*+ (ITALY)
Manufacturer of leather furniture 33,240 1,508,265
KOMATSU SEIREN (JAPAN)
Printer of long-staple fabrics 224,000 1,985,432
LASSILA & TIKANOJA (FINLAND)
Industrial conglomerate 27,800 1,645,839
LINTEC (JAPAN)
Largest maker of gum
and adhesive tapes 112,000 1,700,395
NICHICON (JAPAN)
Manufacturer of electrical equipment 297,000 3,701,097
PLM (SWEDEN)
Manufacturer of food packaging 416,100 6,417,540
RAUMA GROUP (FINLAND)
Manufacturer of forestry-related
machinery 431,500 7,882,233
MANUFACTURING (continued)
ROCKSHOX (US)
Designer and manufacturer of
high-performance bicycle
suspension products 63,500 $ 809,625
SAMAS GROEP (NETHERLANDS)
Manufacturer of office furniture 154,750 5,279,861
SIG SCHWEIZERISCHE INDUSTRIE-GESELLSCHAFT*
(SWITZERLAND)
Industrial conglomerate 3,866 4,695,300
SODICK (JAPAN)
Manufacturer of electrodischargers 399,000 3,921,720
STOVES* (UK)
Manufacturer of ovens 432,500 1,918,052
TSUBAKIMOTO NAKISHIMA (JAPAN)
Manufacturer of ball bearings 355,000 3,489,250
TSUDAKOMA (JAPAN)
Manufacturer of air-jet looms 583,000 3,233,488
VALMET (FINLAND)
Manufacturer of paper and pulp
machinery 299,710 4,564,547
WELLINGTON HOLDINGS (UK)
Producer of sealing systems and
rubber compounds 440,000 1,843,901
-----------
95,052,192
-----------
MEDIA 2.5%
AAMULEHTI YHTYMAE (FINLAND)
Publisher 14,050 411,262
AUDIOFINA (LUXEMBOURG)
Radio and television broadcasting 310 13,351
CAPITAL RADIO (UK)
Commercial radio station in
London 465,200 4,417,619
GWR GROUP (UK)
Local radio operator 875,000 2,933,479
SOUTH CHINA MORNING POST (HONG KONG)
English language newspaper 3,875,000 3,307,554
TOEI (JAPAN)
Producer of movies, particularly of
animated movies 258,000 1,895,094
TRINITY INTERNATIONAL HOLDINGS (UK)
Publisher of regional newspapers
in the UK, US, and Canada 552,600 3,817,651
UNITED VIDEO SATELLITE GROUP
(CLASS A)* (US)
Satellite-delivered program services 102,500 1,819,375
-----------
18,615,385
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY 1.9%
HITACHI MEDICAL (JAPAN)
Manufacturer of medical equipment 201,000 3,139,798
IDX SYSTEMS* (US)
Health care information systems 150,000 4,387,500
IMNET SYSTEMS* (US)
Electronic information and document
management systems 200,000 2,750,000
NCS HEALTHCARE (CLASS A)* (US)
Health care facility and pharmacy
services 130,000 3,948,750
-----------
14,226,048
-----------
- ----------
See footnotes on page 42.
36
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
METALS 0.9%
NAKAYAMA STEEL WORKS (JAPAN)
Small blast furnace company,
mainly for the housing industry 647,000 $ 3,486,248
SANYO SPECIAL STEEL (JAPAN)
Steel manufacturer 1,026,000 3,529,548
-----------
7,015,796
-----------
PAPER AND PRINTING 1.9%
APPLIED GRAPHICS TECHNOLOGIES* (US)
Provider of digital pre-press services 53,000 824,813
BOBST (SWITZERLAND)
Manufacturer of machinery for the
paper and package industries 1,969 2,541,998
MUNSKJO (SWEDEN)
Producer of specialty paper 400,000 3,950,737
NISSHA PRINTING (JAPAN)
Integrated printing firm 180,000 2,148,311
RENGO (JAPAN)
Manufacturer of paper board 548,000 3,496,235
ROTTNEROS (SWEDEN)
Manufacturer of pulp, wooden
boards, and other forest products 143,000 165,141
WACE GROUP (UK)
Provider of pre-press and printing
services 687,500 777,616
-----------
13,904,851
-----------
RESOURCES 0.8%
NITTETSU MINING (JAPAN)
Open cast coal miner 435,000 3,722,027
QNI (AUSTRALIA)
Producer of nickel and cobalt 1,229,000 2,471,262
-----------
6,193,289
-----------
RESTAURANTS 2.1%
AIYA (JAPAN)
Operator of restaurant chain 156,000 2,231,505
KENTUCKY FRIED CHICKEN (JAPAN)
Fast food restaurants 194,000 3,268,802
KFC HOLDINGS (MALAYSIA)
Fast food restaurants 430,000 1,701,622
KFC HOLDINGS (RIGHTS)* (MALAYSIA)
Fast food restaurants 86,000 104,139
PIZZA EXPRESS (UK)
Operator of restaurant chain 675,000 5,662,916
SAGAMI CHAIN (JAPAN)
Noodle restaurant chain 155,000 2,897,323
-----------
15,866,307
-----------
RETAILING 6.3%
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 131,000 3,345,415
CLINTON CARDS (UK)
Retailer of greeting cards 736,043 1,730,927
COURTS (SINGAPORE)
Retailer of household furniture 1,076,000 1,428,555
RETAILING (CONTINUED)
DESIGNER HOLDINGS* (US)
Developer and marketer of
designer sportswear 210,000 $ 4,016,250
D'IETEREN TRADING (BELGIUM)
Rentor of automobiles 7,550 725
FOTOLABO CLUB (SWITZERLAND)
Film processor 7,945 3,095,292
FROST GROUP (UK)
Gas station chain 355,633 795,816
GUANGNAN HOLDINGS (HONG KONG)
Distributor of live and fresh food
products 3,336,000 2,265,044
HAMLEY'S (UK)
Toy store 209,700 1,348,041
HORNBACH BAUMARKT (GERMANY)
Large home improvement and
garden center retailer 118,090 3,891,580
JARDINE INTERNATIONAL MOTOR HOLDINGS
(HONG KONG)
Holding company for Jardine
Matheson Group 1,846,000 2,315,766
JEAN PASCALE (GERMANY)
Clothing retailer 45,656 541,643
JOSHIN DENKI (JAPAN)
Budget electrical appliance retailer 141,000 1,732,339
LOJAS ARAPUA (GDRS)*+ (BRAZIL)
Specialist electrical appliance
retailers 50,000 949,490
MOEBEL WALTHER (GERMANY)
Retailer of furniture and related
products 105,000 6,477,509
PET CITY HOLDINGS (UK)
Retailer of pet products 275,000 2,271,310
PRODEGA (SWITZERLAND)
Food retailer 4,450 1,302,011
SHIMACHU (JAPAN)
Furniture retailer 63,000 1,730,496
TAG HEUER (ADRS)* (SWITZERLAND)
Designer and producer of
sports watches 58,800 940,800
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer of jewelry 96,400 3,037,086
XEBIO (JAPAN)
Retailer of outdoor clothing 98,000 3,182,097
-----------
46,398,192
-----------
SUPPORT SERVICES 0.9%
CMG (UK)
Information technology
consulting 467,900 5,733,973
CRT Group (UK)
Provider of training and recruitment
services; publisher of multimedia
products 250,000 1,055,808
-----------
6,789,781
-----------
- ----------
See footnotes on page 42.
37
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
TECHNOLOGY 1.4%
ASYST TECHNOLOGIES* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 125,000 $ 2,046,875
BTG (UK)
Technology transfer company
assisting in the commercialization
of technological innovations 44,600 1,732,949
CREDENCE SYSTEMS* (US)
Manufacturer of automated
semiconductor test equipment 90,000 1,231,875
GETRONICS (NETHERLANDS)
Computer systems integration
house and consultant 160,416 3,935,026
OPAL* (US)
Semiconductor inspection
equipment 150,000 1,275,000
-----------
10,221,725
-----------
TELECOMMUNICATIONS 1.2%
AMERICAN PORTABLE TELECOM* (US)
Provider of cellular telephone
services 300,000 2,325,000
ARCH COMMUNICATIONS GROUP* (US)
Provider of nationwide paging
services 300,000 3,468,750
BOSTON COMMUNICATIONS* (US)
Wireless telephone support services 80,600 669,988
ICT GROUP* (US)
Call center teleservices 140,000 770,000
KVH INDUSTRIES* (US)
Digital navigation systems and
satellite communications 175,000 1,312,500
------------
8,546,238
------------
TRANSPORTATION 2.6%
COMFORT (SINGAPORE)
Taxi operator 2,078,000 1,844,160
DAWSON GROUP (UK)
Rentor of commercial vehicles 1,018,400 2,593,823
TRANSPORTATION (CONTINUED)
HUB GROUP (CLASS A)* (US)
Freight transportation services 150,000 $ 3,309,375
IINO KAIUN* (JAPAN)
Shipping company 799,000 3,295,568
METACORP (MALAYSIA)
Constructor and operator of toll roads 760,000 2,315,789
NATIONAL EXPRESS GROUP (UK)
Long distance coach services
operating in the UK and Europe 335,000 2,576,050
RUBIS (FRANCE)
Chemical storage and distribution
company 78,810 2,386,713
TONAMI TRANSPORT (JAPAN)
Regional transport company 117,000 665,344
------------
18,986,822
------------
VETERINARY PRODUCTS 0.5%
VIRBAC (FRANCE)
Manufacturer of animal drugs
and veterinary products 33,972 3,893,734
------------
MISCELLANEOUS 0.2%
TAIWAN AMERICAN FUND (TAIWAN)
Fund investing in Taiwan 111,000 1,447,440
------------
TOTAL COMMON STOCKS
(Cost $682,871,564) 711,462,105
------------
PREFERRED STOCKS 0.4%
(Cost $3,217,925)
MANUFACTURING 0.4%
GERRY WEBER INTERNATIONAL (GERMANY)
Designer and manufacturer
of ladies' apparel 76,934 2,854,760
-----------
TOTAL INVESTMENTS 96.6%
(Cost $686,089,489) 714,316,865
OTHER ASSETS LESS LIABILITIES 3.4% 25,487,145
------------
NET ASSETS 100.0% $739,804,010
============
- ----------
See footnotes on page 42.
38
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS October 31, 1996
SHARES VALUE
------ -----
COMMON STOCKS 97.6%
BROADCASTING 0.4%
BELL CABLEMEDIA (ADRS)* (UK)
Cable television operator 170,000 $ 2,762,500
-----------
COMPUTER AND BUSINESS
SERVICES 11.4%
ADMIRAL (UK)
Computer software and services 950,000 4,916,526
ALTRAN TECHNOLOGIES (FRANCE)
Computer services 9,693 2,895,721
AZLAN (UK)
Integrator of networking
equipment 640,000 7,603,446
BTG (UK)
Technology transfer company
assisting in the commercialization
of technological inventions 135,000 5,245,475
CEGEDIM (FRANCE)
Consulting services 16,700 1,311,492
CMG (NETHERLANDS)
Information technology consulting 845,700 10,363,799
CRT GROUP (UK)
Provider of training and recruitment
services; publisher of multimedia
products 805,000 3,399,702
CSK (JAPAN)
Information services company 255,000 7,496,709
ENATOR* (SWEDEN)
Supplier of computer services 71,000 1,575,129
LOGICA (UK)
Supplier of computer services 1,000,000 13,223,031
MERKANTILDATA (NORWAY)
Systems integrator and distributor 78,500 1,203,159
PERSONA (UK)
Networking distribution 1,669,914 8,560,760
SECOM (JAPAN)
Security services pioneer 109,000 6,485,476
SLIGOS (FRANCE)
Supplier of computer services 50,912 5,477,455
UNILOG (FRANCE)
Computer consultants 17,241 1,817,872
-----------
81,575,752
-----------
COMPUTER HARDWARE/
PERIPHERALS 14.7%
ACORN COMPUTER* (UK)
Supplier to the educational
computer market 695,000 2,256,500
ASTEC (UK)
Designer and manufacturer of
power conversion products and
electronic components 3,650,000 9,088,494
CANON (JAPAN)
Manufacturer of printers and
photocopiers 370,000 7,078,543
COMPUTER HARDWARE/
PERIPHERALS (CONTINUED)
CHUNG HO COMPUTER (SOUTH KOREA)
Manufacturer of ATMs and cash
dispensers 35,100 $ 1,690,747
EMC* (US)
Manufacturer of enterprise
storage devices 500,000 13,125,000
GATEWAY 2000* (US)
Marketer of personal computers 200,000 9,412,500
KOMAG* (US)
Manufacturer of thin film
magnetic media for hard-disk drives 330,000 9,116,250
LEXMARK INTERNATIONAL GROUP
(CLASS A)* (US)
Manufacturer of laser and
ink jet printers 400,000 9,450,000
PSION (UK)
Manufacturer of hand-held
computers 914,900 6,290,831
RASTER GRAPHICS (US)
Manufacturer of high performance
printing systems 223,900 1,875,163
READ-RITE* (US)
Manufacturer of recording heads
for disk drives 250,000 4,406,250
SAMSUNG DISPLAY DEVICES (GDSS)
(SOUTH KOREA)
Manufacturer of computer monitors 65,000 4,090,772
SEAGATE TECHNOLOGY* (US)
Global hard-disk drive supplier 160,000 10,680,000
STORAGE TECHNOLOGY* (US)
Tape and disk-based data
storage equipment 250,000 10,656,250
TDK (JAPAN)
Magnetic tapes
and heads for disk drives 74,000 4,338,043
VARITRONIX INTERNATIONAL (HONG KONG)
Manufacturer of color printers,
digital video storage, and
editing systems 1,070,000 1,951,166
-----------
105,506,509
-----------
COMPUTER SOFTWARE 13.8%
AMERICA ONLINE (US)
Interactive/Internet services 400,000 10,850,000
CADENCE DESIGN SYSTEMS* (US)
Software for computer-aided
engineering 200,000 7,300,000
CODA GROUP (UK)
Developer of financial accounting
software 670,000 1,417,509
EIDOS* (UK)
Developer of entertainment software 242,000 2,880,961
HUMMINGBIRD COMMUNICATIONS (CANADA)
X-Windows networking software 150,000 4,312,500
INFORMIX* (US)
Developer of database management
systems 200,000 4,437,500
- ----------
See footnotes on page 42.
39
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
COMPUTER SOFTWARE (continued)
LEARMONTH & BURCHETT MANAGEMENT
SYSTEMS* (UK)
Supplier of computer-aided
software and engineering tools 600,000 $ 703,058
LERNOUT & HAUSPIE SPEECH PRODUCTS*
(BELGIUM)
Developer of advanced speech
technologies 83,500 1,398,625
MENTOR GRAPHICS* (US)
Computer-aided engineering systems 500,000 4,218,750
MICROSOFT* (US)
Producer of microcomputer software 60,000 8,238,750
MISYS (UK)
Provider of software products and
services for the financial services
industry 300,100 4,432,210
NETWORK GENERAL* (US)
Local area network management
software 300,000 7,181,250
ORACLE SYSTEMS* (US)
Database management software
systems 100,000 4,231,250
PARAMETRIC TECHNOLOGY* (US)
Developer of mechanical
design software 200,000 9,762,500
PC DOCS GROUP INTERNATIONAL* (CANADA)
Document software products 200,000 1,662,500
SAPIENT* (US)
Designer and developer of enterprise
application software 75,000 3,431,250
STRUCTURAL DYNAMICS RESEARCH (US)
Developer of mechanical design
software 350,000 6,190,625
SYNOPSYS* (US)
Integrated circuit design software 250,000 11,312,500
3DO* (US)
Developer of video game software
and game platforms 700,000 3,981,250
VIRTUALITY GROUP* (UK)
Designer of virtual reality systems
and related software 600,000 1,284,058
-----------
99,227,046
-----------
DISTRIBUTORS 1.2%
ABACUS POLAR (UK)
Distributor of electronic
components 1,240,000 3,107,778
ELECTROCOMPONENTS (UK)
Distributor of electronic
components 800,000 5,383,605
-----------
8,491,383
-----------
ELECTRONICS 12.2%
ADAPTEC* (US)
Manufacturer of computer
input-output systems 100,000 6,081,250
ADE* (US)
Manufacturer of semiconductor
inspection systems 400,000 3,675,000
ELECTRONICS (CONTINUED)
ADFLEX SOLUTIONS (US)
Flexible circuit boards 150,000 $ 1,331,250
ELECTRO SCIENTIFIC INDUSTRIES* (US)
Manufacturer of memory
circuit repair systems 200,000 4,050,000
ELECTROSTAR (US)
Manufacturer of memory
circuit repair systems 625,000 7,695,313
GENERAL ELECTRIC (UK)
Supplier of diversified electronics 1,250,000 7,720,216
HADCO* (US)
Printed circuit boards 550,000 16,671,875
HIROSE ELECTRONICS (JAPAN)
Manufacturer of specialized
connectors 91,200 5,410,373
HITACHI (JAPAN)
Manufacturer of
diversified electronics 600,000 5,318,122
MERIX* (US)
Electronic circuit boards 150,000 3,131,250
MURATA MANUFACTURING (JAPAN)
Manufacturer of capacitors 167,000 5,363,931
PHILIPS ELECTRONICS (NETHERLANDS)
Consumer and industrial
electronics 49,000 1,723,698
RACAL ELECTRONICS (UK)
Data communications 1,000,000 4,508,036
VENTURE MANUFACTURING (SINGAPORE)
Contract manufacturer 3,140,000 5,707,064
VICOR* (US)
Manufacturer of modular
power converters 290,000 5,256,250
YAGEO (GDRS)*+ (TAIWAN)
Manufacturer of passive
components 387,487 3,834,029
-----------
87,477,657
-----------
MEDIA 0.3%
AUSTRALIS MEDIA* (AUSTRALIA)
Satellite broadcasting 300,000 43,936
TV FILME* (BRAZIL)
Owner and operator of subscription
TV systems in Brazil 120,000 1,770,000
-----------
1,813,936
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY 2.2%
COCHLEAR (AUSTRALIA)
Developer of hearing aids 1,650,000 4,310,534
FRESENIUS (GERMANY)
Dialysis equipment 29,700 6,332,477
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 147,800 5,154,208
-----------
15,797,219
-----------
- ----------
See footnotes on page 42.
40
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE 13.6%
ANITE GROUP* (UK)
Supplier of data communications
and software products 2,450,000 $ 1,275,921
CABLETRON SYSTEMS* (US)
Manufacturer of computer
interconnection equipment 130,000 8,108,750
CIDCO* (US)
Manufacturer of telephone call
identifiers 200,000 3,825,000
CISCO SYSTEMS* (US)
Computer network routers and
switches 300,000 18,543,750
COLONIAL DATA TECHNOLOGIES* (US)
Manufacturer of caller identification
devices 200,000 1,912,500
ECI TELECOMMUNICATIONS (ISRAEL)
Telecommunications equipment
supplier 400,000 8,025,000
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Manufacturer of telecommunications
equipment 256,700 6,943,056
FILTRONIC COMTEC (UK)
Designer and manufacturer of
sophisticated devices for mobile
telecommunications systems 250,000 819,828
GEMSTAR INTERNATIONAL* (US)
Television and video recording
products 250,000 5,484,375
GLENAYRE TECHNOLOGIES* (US)
Manufacturer of paging
infrastructure equipment 450,000 11,559,375
NEC (JAPAN)
Manufacturer of diversified
electronics 413,000 4,494,252
NOKIA (FINLAND)
Manufacturer and developer of
telecommunications systems and
equipment 103,900 4,788,313
TELEMETRIX (UK)
Networking components 180,000 183,088
3COM* (US)
Supplier of adapter cards, hubs,
and routers for local area
computer networks 180,000 12,183,750
U.S. ROBOTICS* (US)
Modems and remote access
concentrators 150,000 9,440,625
-----------
97,587,583
-----------
SEMICONDUCTORS 14.6%
ATMEL* (US)
Non-volatile memory circuits 300,000 7,631,250
C-CUBE MICROSYSTEMS* (US)
Video compression circuits 150,000 5,831,250
ESS TECHNOLOGY* (US)
Mixed-signal semiconductor audio
solutions 300,000 4,762,500
SEMICONDUCTORS (CONTINUED)
INTEL (US)
Microprocessors and FLASH
memory circuits 200,000 $ 21,962,500
INTERNATIONAL RECTIFIER* (US)
Power semiconductors 450,000 5,568,750
KYOCERA (JAPAN)
Supplier of semiconductor packaging,
capacitors, and cellular components 65,000 4,283,896
LATTICE SEMICONDUCTOR* (US)
Programmable logic devices 200,000 6,825,000
MAXIM INTEGRATED PRODUCTS* (US)
Manufacturer of linear and
mixed-signal integrated circuits 300,000 10,556,250
MICROCHIP TECHNOLOGY* (US)
Field programmable
microcontrollers 300,000 10,837,500
ROHM (JAPAN)
Producer of custom linear
integrated circuits 97,000 5,745,941
SAMSUNG ELECTRONICS (GDRS)
((CENT) NON-VOTING)*+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 187,430 4,029,745
S3* (US)
Supplier of multimedia acceleration
solutions for PCs 400,000 7,500,000
TOWER SEMICONDUCTOR* (ISRAEL)
Semiconductor foundry services 350,000 2,428,125
XILINX* (US)
Field programmable gate arrays 200,000 6,537,500
-----------
104,500,207
-----------
SEMICONDUCTOR CAPITAL
EQUIPMENT 7.3%
ASM LITHOGRAPHY (NETHERLANDS)
Manufacturer of semiconductor
production equipment 126,000 4,520,250
ASYST TECHNOLOGIES* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 300,000 4,912,500
AVAL DATA (JAPAN)
Manufacturer of computer
peripherals 200,000 1,878,017
BROOKS AUTOMATION* (US)
Systems and modules for
semiconductor manufacturing 250,000 2,515,625
CREDENCE SYSTEMS* (US)
Manufacturer of automated
semiconductor test equipment 250,000 3,421,875
DUPONT PHOTOMASKS* (US)
Designer and manufacturer of
photomasks used in the production of
semiconductors 95,000 3,449,688
MIMASU SEMICONDUCTOR (JAPAN)
Wafer inspection devices 180,000 2,764,370
NOVELLUS SYSTEMS* (US)
Chemical vapor deposition
equipment 150,000 6,187,500
- ----------
See footnotes on page 42.
41
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) October 31, 1996
SHARES VALUE
------ -----
SEMICONDUCTOR CAPITAL
EQUIPMENT (CONTINUED)
OPAL* (US)
Semiconductor inspection equipment 85,000 $ 722,500
SHINKAWA (JAPAN)
Producer of wire bonders 28,000 503,730
SILICONWARE PRECISION INDUSTRIES
(GDRS)* (TAIWAN)
IC packaging 284,800 2,314,000
TENCOR INSTRUMENTS* (US)
Wafer inspection devices 500,000 9,500,000
ULTRATECH STEPPER* (US)
Photolithography systems 300,000 5,062,500
VEECO INSTRUMENTS* (US)
Ion beam etching and surface
measurement systems 400,000 4,850,000
-----------
52,602,555
-----------
TELECOMMUNICATIONS 4.4%
DDI (JAPAN)
Long distance and cellular services
operator 800 6,002,633
KOREA MOBILE TELECOM (GDSS)
(SOUTH KOREA)
Cellular services operator 375,000 4,687,500
MILLICOM INTERNATIONAL CELLULAR*
(LUXEMBOURG)
Cellular services operator 50,000 2,000,000
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 8,000 591,791
TELECOM ITALIA (ITALY)
Provider of telecommunications
services 2,700,000 6,013,125
TELECOM ITALIA MOBILE* (ITALY)
Cellular services operator 1,600,000 3,305,045
TELE DANMARK (SERIES B) (DENMARK)
Provider of telecommunications
services 80,000 4,021,790
VODAFONE (UK)
Cellular services operator 1,200,000 4,638,233
-----------
31,260,117
-----------
MISCELLANEOUS 1.5%
CELSIUS INDUSTRIES (SERIES B) (SWEDEN)
Producer of defense and
technology products 71,000shs. $ 922,421
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 175,000 4,499,781
ISOTRON (UK)
Irradiation services 475,000 2,744,287
LINX PRINTING TECHNOLOGY (UK)
Manufacturer of specialized
printers 820,000 1,514,668
TRAFFIC MASTER* (UK)
Supplier of traffic information
services 168,750 920,018
-----------
10,601,175
-----------
TOTAL COMMON STOCKS
(Cost $680,319,551) 699,203,639
-----------
CONVERTIBLE BONDS 0.4%
(Cost $3,562,130)
SEMICONDUCTORS 0.4%
UNITED MICRO ELECTRONICS
(TAIWAN) 11/4%, 6/8/2004
Manufacturer of
semiconductors $2,120,000 2,602,300
-----------
TOTAL INVESTMENTS 98.0%
(Cost $683,881,681) 701,805,939
OTHER ASSETS LESS LIABILITIES 2.0% 14,303,935
-----------
NET ASSETS 100.0% $716,109,874
===========
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
42
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 1996
<TABLE>
<CAPTION>
EMERGING MARKETS GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND* FUND FUND FUND
--------------- --------------- -------------- ------------- ------------
ASSETS:
Investments, at value (see portfolios of investments):
<S> <C> <C> <C> <C> <C>
Common stocks ....................... $ 100,008,020 $ 40,389,823 $ 167,067,553 $ 711,462,105 $ 699,203,639
Convertible bonds ................... -- -- -- -- 2,602,300
Preferred stocks .................... -- -- -- 2,854,760 --
------------- ------------ ------------- ------------- -------------
Total investments ....................... 100,008,020 40,389,823 167,067,553 714,316,865 701,805,939
Cash .................................... 1,557,767 3,568,132 6,399,532 22,481,634 6,093,293
Receivable for dividends and interest ... 537,437 9,978 239,610 1,267,735 991,849
Unrealized appreciation on
forward currency contracts .......... 426,975 57 403,944 1,246,933 111,303
Receivable for securities sold .......... 268,168 496,869 1,147,183 -- 13,026,388
Receivable for Capital Stock sold ....... 166,124 615,558 312,617 9,516,202 1,530,978
Expenses prepaid to shareholder
service agent ....................... 48,916 66,544 106,529 372,684 477,856
Deferred organizational expenses ........ 2,448 -- -- 5,577 --
Other ................................... 2,712 36,478 25,338 15,045 21,685
------------- ------------ ------------- ------------- -------------
Total Assets ............................ 103,018,567 45,183,439 175,702,306 749,222,675 724,059,291
------------- ------------ ------------- ------------- -------------
LIABILITIES:
Payable for securities purchased ........ 403,030 862,571 4,136,236 4,181,176 3,178,045
Payable for Capital Stock repurchased ... 358,922 129,640 538,378 3,045,785 3,418,413
Unrealized depreciation on forward
currency contracts .................. 242,849 38 310,458 771,300 2
Accrued expenses, taxes, and other ...... 255,761 121,732 410,670 1,420,404 1,352,957
------------- ------------ ------------- ------------- -------------
Total Liabilities ....................... 1,260,562 1,113,981 5,395,742 9,418,665 7,949,417
------------- ------------ ------------- ------------- -------------
Net Assets .............................. $ 101,758,005 $ 44,069,458 $ 170,306,564 $ 739,804,010 $ 716,109,874
============= ============ ============= ============= =============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ............................. $ 2,970 $ 2,931 $ 13,306 $ 23,142 $ 44,189
Class B ............................. 170 1,560 1,154 7,065 1,698
Class D ............................. 2,863 2,021 6,679 19,400 17,794
Additional paid-in capital .............. 91,886,622 45,879,438 156,336,183 675,429,358 714,591,581
Accumulated net investment loss ......... (10,972) (492) (1,657) (7,397) (4,288)
Undistributed/accumulated net
realized gain (loss) on investments . 3,944,227 (909,789) (265,641) 35,627,544 (16,564,040)
Net unrealized appreciation
(depreciation) of investments ....... 8,542,689 (501,007) 17,026,140 32,107,233 23,782,902
Net unrealized depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts ...... (2,610,564) (405,204) (2,809,600) (3,402,335) (5,759,962)
------------- ------------ ------------- ------------- -------------
Net Assets .............................. $ 101,758,005 $ 44,069,458 $ 170,306,564 $ 739,804,010 $ 716,109,874
============= ============ ============= ============= =============
NET ASSETS:
Class A ............................. $ 50,998,137 $ 19,863,816 $ 107,509,360 $ 350,358,490 $ 499,858,181
Class B ............................. $ 2,842,580 $ 10,541,066 $ 9,257,369 $ 103,968,103 $ 18,839,423
Class D ............................. $ 47,917,288 $ 13,664,576 $ 53,539,835 $ 285,477,417 $ 197,412,270
SHARES OF CAPITAL STOCK
OUTSTANDING:
Class A ............................. 2,969,647 2,931,300 13,305,688 23,142,058 44,189,238
Class B ............................. 169,850 1,559,487 1,154,340 7,065,169 1,698,083
Class D ............................. 2,862,966 2,021,447 6,678,535 19,399,748 17,793,727
NET ASSET VALUE PER SHARE:
Class A ............................. $17.17 $6.78 $8.08 $15.14 $11.31
Class B ............................. $16.74 $6.76 $8.02 $14.72 $11.09
Class D ............................. $16.74 $6.76 $8.02 $14.72 $11.09
</TABLE>
- ----------
See Notes to Financial Statements.
43
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
EMERGING MARKETS GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND* FUND FUND FUND
------------- --------------- -------------- ------------- ------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Dividends ................................ $ 1,852,697 $ 131,091 $ 1,550,279 $ 6,246,889 $ 3,314,208
Interest ................................. 199,144 96,637 286,534 1,285,796 3,840,628
----------- ----------- ------------ ------------ ------------
Total investment income** ................ 2,051,841 227,728 1,836,813 7,532,685 7,154,836
----------- ----------- ------------ ------------ ------------
EXPENSES:
Management fees .......................... 963,308 66,785 1,318,826 4,279,964 7,054,213
Distribution and service fees ............ 527,357 94,471 628,050 2,600,618 3,185,685
Shareholder account services ............. 232,136 101,900 414,699 1,308,931 2,573,587
Custody and related services ............. 131,646 34,892 156,947 412,697 434,334
Registration ............................. 88,503 29,748 140,962 249,624 313,721
Shareholder reports and
communications ....................... 79,116 30,772 78,120 111,386 236,880
Auditing and legal fees .................. 63,756 30,584 72,309 63,756 63,757
Directors' fees and expenses ............. 8,559 2,452 7,896 8,400 8,415
Amortization of organizational
expenses ............................. 7,343 -- -- 6,083 --
Miscellaneous ............................ 8,471 1,252 4,127 12,763 16,566
----------- ----------- ------------ ------------ ------------
Total expenses ........................... 2,110,195 392,856 2,821,936 9,054,222 13,887,158
----------- ----------- ------------ ------------ ------------
Net investment loss ...................... (58,354) (165,128) (985,123) (1,521,537) (6,732,322)
----------- ----------- ------------ ------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on
investments .............................. 3,110,034 (904,503) (572,959) 36,490,841 (19,588,016)
Net realized gain (loss) from foreign
currency transactions ................ 2,141,677 (48,331) 280,999 1,559,761 5,689,533
Net change in unrealized
appreciation of investments .......... 6,001,037 (501,007) 17,026,140 14,883,512 (26,884,293)
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency
contracts ............................ (4,614,858) (405,204) (2,809,600) (6,531,471) (2,377,802)
----------- ----------- ------------ ------------ ------------
Net gain (loss) on investments and
foreign currency transactions ........ 6,637,890 (1,859,045) 13,924,580 46,402,643 (43,160,578)
----------- ----------- ------------ ------------ ------------
Increase (decrease) in net assets
from operations ...................... $ 6,579,536 $(2,024,173) $ 12,939,457 $ 44,881,106 $(49,892,900)
=========== =========== ============ ============ ============
- ----------------------
* The Series began operations on May 28, 1996.
** Net of foreign taxes withheld as follows: $217,108 $5,762 $145,774 $811,644 $459,248
See Notes to Financial Statements.
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
EMERGING GLOBAL
MARKETS GROWTH
INTERNATIONAL FUND GROWTH OPPORTUNITIES
------------------ FUND FUND
YEAR ENDED OCTOBER 31, ---- ----
---------------------------- 5/28/96* 11/1/95*
1996 1995 TO 10/31/96 TO 10/31/96
------------ ------------- ------------- ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) .................... $ (58,354) $ 91,680 $ (165,128) $ (985,123)
Net realized gain (loss) on
investments .................................. 3,110,034 107,795 (904,503) (572,959)
Net realized gain (loss) from
foreign currency
transactions ................................. 2,141,677 2,665,639 (48,331) 280,999
Net change in unrealized
appreciation/depreciation
of investments ............................... 6,001,037 (1,749,894) (501,007) 17,026,140
Net change in unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts ................... (4,614,858) (2,193,540) (405,204) (2,809,600)
------------- ------------ ------------ -------------
Increase (decrease) in net
assets from operations ....................... 6,579,536 (1,078,320) (2,024,173) 12,939,457
------------- ------------ ------------ -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income--
Class A ...................................... -- -- -- --
Net realized gain on investments:
Class A ...................................... (2,689,619) (2,535,690) -- --
Class D ...................................... (1,872,543) (858,276) -- --
------------- ------------ ------------ -------------
Decrease in net assets from
distributions ................................ (4,562,162) (3,393,966) -- --
------------- ------------ ------------ -------------
CAPITAL SHARE
TRANSACTIONS:** Net proceeds from sale of shares:
Class A ...................................... 12,139,764 14,368,837 19,208,602 106,023,483
Class B ...................................... 2,847,268 -- 11,237,933 9,447,410
Class D ...................................... 18,419,176 15,310,748 12,152,846 48,762,322
Shares issued in payment of
dividends--Class A ........................... -- -- -- --
Exchanged from associated Funds:
Class A ...................................... 18,336,472 9,722,723 3,554,578 13,737,482
Class B ...................................... 52,151 -- 20,098 147,370
Class D ...................................... 6,116,903 2,556,052 2,931,518 8,540,034
Shares issued in payment of gain distributions:
Class A ...................................... 1,773,043 2,386,633 -- --
Class D ...................................... 1,649,485 815,096 -- --
------------- ------------ ------------ -------------
Total ........................................... 61,334,262 45,160,089 49,105,575 186,658,101
------------- ------------ ------------ -------------
Cost of shares repurchased:
Class A ......................................... (15,705,367) (26,669,397) (997,418) (15,204,795)
Class B ...................................... (5,615) -- (133,610) (34,193)
Class D ...................................... (4,688,461) (2,728,512) (404,805) (3,136,356)
Exchanged into associated Funds:
Class A ...................................... (15,800,882) (10,430,952) (993,426) (7,098,155)
Class B ...................................... (1,437) -- (96,640) (169,376)
Class D ...................................... (5,428,114) (3,647,337) (386,045) (3,648,119)
------------- ------------ ------------ -------------
Total ........................................... (41,629,876) (43,476,198) (3,011,944) (29,290,994)
------------- ------------ ------------ -------------
Increase in net assets from
capital share transactions ................... 19,704,386 1,683,891 46,093,631 157,367,107
------------- ------------ ------------ -------------
Increase (decrease) in net assets ............... 21,721,760 (2,788,395) 44,069,458 170,306,564
NET ASSETS:
Beginning of period ............................. 80,036,245 82,824,640 -- --
------------- ------------ ------------ -------------
End of period ................................... $ 101,758,005 $ 80,036,245 $ 44,069,458 $ 170,306,564
============= ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
COMPANIES FUND TECHNOLOGY FUND
-------------- ---------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
----------------------------- --------------------------------
1996 1995 1996 1995
------------- ------------ ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) .................... $ (1,521,537) $ (636,807) $ (6,732,322) $ (2,259,466)
Net realized gain (loss) on
investments .................................. 36,490,841 13,624,396 (19,588,016) 37,630,540
Net realized gain (loss) from
foreign currency
transactions ................................. 1,559,761 612,519 5,689,533 3,115,205
Net change in unrealized
appreciation/depreciation
of investments ............................... 14,883,512 9,286,138 (26,884,293) 45,696,354
Net change in unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts ................... (6,531,471) 122,958 (2,377,802) (4,035,567)
------------- ------------- ------------- -------------
Increase (decrease) in net
assets from operations ....................... 44,881,106 23,009,204 (49,892,900) 80,147,066
------------- ------------- ------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income--
Class A ...................................... -- -- (734,205) --
Net realized gain on investments:
Class A ...................................... (7,753,041) (1,358,384) (29,793,277) (506,847)
Class D ...................................... (6,615,915) (1,134,039) (10,861,462) (84,094)
------------- ------------- ------------- -------------
Decrease in net assets from
distributions ................................ (14,368,956) (2,492,423) (41,388,944) (590,941)
------------- ------------- ------------- -------------
CAPITAL SHARE
TRANSACTIONS:** Net proceeds from sale of shares:
Class A ...................................... 216,788,438 49,499,681 202,973,417 360,662,688
Class B ...................................... 105,243,040 -- 19,512,733 --
Class D ...................................... 177,428,825 40,513,236 93,281,519 141,486,971
Shares issued in payment of
dividends--Class A ........................... -- -- 530,711 --
Exchanged from associated Funds:
Class A ...................................... 71,523,117 15,768,458 49,024,078 27,074,750
Class B ...................................... 576,794 -- 119,863 --
Class D ...................................... 32,459,050 5,514,387 36,228,561 19,697,655
Shares issued in payment of gain distributions:
Class A ...................................... 7,033,698 1,265,938 27,593,949 470,951
Class D ...................................... 6,106,235 1,065,232 10,345,726 81,693
------------- ------------- ------------- -------------
Total ........................................... 617,159,197 113,626,932 439,610,557 549,474,708
------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ......................................... (30,945,950) (8,956,953) (88,142,523) (33,194,965)
Class B ...................................... (900,770) -- (232,986) --
Class D ...................................... (17,014,912) (4,830,211) (27,805,782) (6,863,194)
Exchanged into associated Funds:
Class A ...................................... (34,854,479) (12,541,162) (74,146,717) (19,854,654)
Class B ...................................... (326,119) -- (142,667) --
Class D ...................................... (11,852,034) (4,374,915) (51,102,325) (16,982,122)
------------- ------------- ------------- -------------
Total ........................................... (95,894,264) (30,703,241) (241,573,000) (76,894,935)
------------- ------------- ------------- -------------
Increase in net assets from
capital share transactions ................... 521,264,933 82,923,691 198,037,557 472,579,773
------------- ------------- ------------- -------------
Increase (decrease) in net assets ............... 551,777,083 103,440,472 106,755,713
552,135,898
NET ASSETS:
Beginning of period ............................. 188,026,927 84,586,455 609,354,161 57,218,263
------------- ------------- ------------- -------------
End of period ................................... $ 739,804,010 $ 188,026,927 $ 716,109,874 $ 609,354,161
============= ============= ============= =============
</TABLE>
- -------------
* Commencement of operations.
** The then existing Series began offering Class B shares on April 22, 1996.
See Notes to Financial Statements.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Seligman Henderson Global Fund Series, Inc. (the "Fund") consists of five
separate Series: Seligman Henderson International Fund (the "International
Fund"), Seligman Henderson Emerging Markets Growth Fund (the "Emerging Markets
Growth 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 and
the Emerging Markets Growth Fund had no operations prior to their commencement
on November 1, 1995 and May 28, 1996, respectively, 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, for the then existing Series.
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 A shares
purchased in an amount of $1,000,000 or more are sold without an initial sales
charge but are subject to a contingent deferred sales load ("CDSL") of 1% on
redemptions within 18 months of purchase. 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 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 principally traded in
foreign currencies, 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.
46
<PAGE>
The contracts are valued daily at current exchange rates and any unrealized gain
or loss is included in net unrealized appreciation or depreciation on
translation of assets and liabilities denominated in foreign currencies and
forward currency contracts. The gain or loss, if any, arising from the
difference between the settlement value of the forward contract and the closing
of such contract, is included in net realized gain or loss from foreign currency
transactions.
d. There is no provision for federal income or excise tax. Each Series has
elected or will elect 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 year/period ended October 31, 1996, distribution and
service fees were the only class-specific expenses.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year/period ended October 31, 1996, were as follows:
SERIES PURCHASES SALES
------ ---------- -----
International Fund $ 69,643,562 $ 50,836,064
Emerging Markets Growth
Fund 45,700,203 3,489,142
Global Growth
Opportunities Fund 195,637,900 41,744,084
Global Smaller
Companies Fund 677,107,236 183,809,901
Global Technology Fund 676,636,882 462,613,676
At October 31, 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 $ 11,056,102 $ 5,297,385
Emerging Markets Growth
Fund 2,161,699 3,073,148
Global Growth
Opportunities Fund 23,014,538 8,865,529
Global Smaller
Companies Fund 86,279,564 58,052,188
Global Technology Fund 110,839,125 92,914,867
4. J. &W. Seligman &Co. Incorporated (the "Manager") manages the affairs of the
Fund and provides or arranges for the necessary personnel and facilities.
Seligman Henderson Co. (the "Subadviser"), an entity owned 50% each by the
Manager and Henderson plc, supervises and directs the Fund's global investments.
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
Manager, is paid by the Manager or by Henderson plc. The Manager receives a fee,
calculated daily and payable monthly, equal to 1.25% per annum of the average
daily net assets of Emerging Markets Growth Fund and 1.00% per annum of the
other Series' average daily net assets, of which 1.15% and 0.90%, respectively,
are paid to the Subadviser. During the period ended October 31, 1996, the
Manager and Subadviser, at their discretion, waived a portion of their fees for
the Emerging Markets GrowthFund equal to $119,524. The management fee reflected
in the statements of operations represents 0.45% 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 $ 42,719 $ 331,586
Emerging Markets Growth
Fund 31,761 749,016
Global Growth
Opportunities Fund 201,990 4,179,489
Global Smaller
Companies Fund 810,616 6,498,877
Global Technology Fund 930,729 7,535,643
47
<PAGE>
- --------------------------------------------------------------------------------
NOTES OT FINANCIAL STATEMENTS (CONTINUED)
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares, under which service organizations
can enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis, payable quarterly, of the average daily net
assets of the Class A shares attributable to the particular service
organizations for providing personal services and/or the maintenance of
shareholder accounts. The Distributor charges such fees to the Fund pursuant to
the Plan. For the year/period ended October 31, 1996, fees incurred by the
International Fund, the Emerging Markets Growth Fund, the Global Growth
Opportunities Fund, the Global Smaller Companies Fund, and the Global Technology
Fund, aggregated $90,323, $15,432, $220,454, $534,241, and $1,192,495,
respectively, or 0.17%, 0.22%, 0.24%, 0.24%, and 0.23%, respectively, per annum
of the average daily net assets of Class A shares.
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 year/period ended October 31, 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 $ 7,987 $ 429,047
Emerging Markets Growth
Fund 34,000 45,039
Global Growth
Opportunities Fund 29,251 378,345
Global Smaller
Companies Fund 270,075 1,796,302
Global Technology Fund 52,605 1,940,585
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares occurring within one year of purchase. For the year/period ended
October 31, 1996, such charges were as follows:
SERIES AMOUNT
------ --------
International Fund $ 11,127
Emerging Markets Growth
Fund 1,677
Global Growth
Opportunities Fund 21,849
Global Smaller
Companies Fund 62,753
Global Technology Fund 173,702
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 year/period ended October 31, 1996 were as follows:
SERIES AMOUNT
------ ---------
International Fund $ 7,499
Emerging Markets Growth
Fund 29,634
Global Growth
Opportunities Fund 24,532
Global Smaller
Companies Fund 269,847
Global Technology Fund 50,272
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 year/period ended October 31, 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 $ 3,204 $15,809
Emerging Markets Growth
Fund 2,722 568
Global Growth
Opportunities Fund 9,362 3,281
Global Smaller
Companies Fund 137,567 25,474
Global Technology Fund 190,014 36,015
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
SERIES AMOUNT
------ ---------
International Fund $ 230,137
Emerging Markets Growth Fund 101,900
Global Growth Opportunities Fund 412,700
Global Smaller Companies Fund 1,306,931
Global Technology Fund 2,571,588
48
<PAGE>
- --------------------------------------------------------------------------------
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 $15,750
Emerging Markets GrowthFund 7,000
Global Growth Opportunities Fund 15,750
Global Smaller Companies Fund 15,750
Global Technology Fund 15,750
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 annual cost of such
fees and interest is included in directors' fees and expenses, and the following
accumulated balances thereof at October 31, 1996, are included in other
liabilities:
SERIES AMOUNT
------ --------
International Fund $10,972
Emerging Markets GrowthFund 492
Global Growth Opportunities Fund 1,657
Global Smaller Companies Fund 7,397
Global Technology Fund 4,288
5. Effective July 31, 1996, the Fund entered into an $80 million committed line
of credit facility with a group of banks. Borrowings pursuant to the credit
facility are subject to interest at a rate equal to the federal funds rate plus
0.75% per annum. The Fund incurs a commitment fee of 0.10% per annum on the
unused portion of the credit facility. The credit facility may be drawn upon
only for temporary purposes and is subject to certain other customary
restrictions. The credit facility commitment expires one year from the date of
the agreement but is renewable with the consent of the participating banks. The
Fund made no borrowings during the period ended October 31, 1996.
6. In accordance with current federal income tax law, each of the Series' net
realized capital gains and losses are considered separately for purposes of
determining taxable capital gains. At October 31, 1996, the net loss
carryforwards for the Emerging Markets Growth Fund, the Global Growth
Opportunities Fund, and the Global Technology Fund amounted to $909,789,
$174,512 and $16,489,188, respectively, which are available for offset against
future taxable net gains, expiring in 2004. Accordingly, no capital gain
distributions are expected to be paid to shareholders of the Emerging Markets
Growth Fund, the Global Growth Opportunities Fund, and the Global Technology
Fund until net capital gains have been realized in excess of the available
capital loss carryforwards.
49
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. The Fund has 2,000,000,000 shares of Capital Stock authorized. The Board of
Directors, at its discretion, may classify any unissued shares of Capital Stock
among any Series of the Fund. As of October 31, 1996, the Board of Directors had
classified 400,000,000 shares for the International Fund, 100,000,000 shares for
the Emerging Markets Growth 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.
<TABLE>
<CAPTION>
EMERGING GLOBAL
MARKETS GROWTH
GROWTH OPPORTUNITIES
INTERNATIONAL FUND FUND FUND
------------------------------ ------------- -------------
YEAR ENDED OCTOBER 31, 5/28/96* 11/1/95
------------------------------
1996 1995 TO 10/31/96 TO 10/31/96
------------ ------------- ------------- ------------
Sale of shares:
<S> <C> <C> <C> <C>
Class A .................................... 707,786 883,953 2,715,379 14,315,714
Class B .................................... 167,160 -- 1,589,508 1,161,258
Class D .................................... 1,095,491 957,943 1,719,727 6,425,478
Shares issued in payment
of dividends--Class A ...................... -- -- -- --
Exchanged from associated
Funds:
Class A .................................... 1,076,633 582,898 501,328 1,797,362
Class B .................................... 3,104 -- 2,904 18,033
Class D .................................... 365,666 156,168 415,187 1,108,493
Shares issued in payment of gain distributions:
Class A .................................... 106,939 152,467 -- --
Class D .................................... 101,382 52,587 -- --
---------- ---------- ---------- -----------
Total ......................................... 3,624,161 2,786,016 6,944,033 24,826,338
---------- ---------- ---------- -----------
Shares repurchased:
Class A .................................... (918,125) (1,626,181) (143,005) (1,897,331)
Class B .................................... (327) -- (19,141) (4,203)
Class D .................................... (278,839) (172,007) (58,321) (393,805)
Exchanged into associated
Funds:
Class A .................................... (922,041) (635,170) (142,402) (910,057)
Class B .................................... (87) -- (13,784) (20,748)
Class D .................................... (323,609) (227,011) (55,146) (461,631)
---------- ---------- ---------- -----------
Total ......................................... (2,443,028) (2,660,369) (431,799) (3,687,775)
---------- ---------- ---------- -----------
Increase in shares ............................ 1,181,133 125,647 6,512,234 21,138,563
========== ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
COMPANIES FUND TECHNOLOGY FUND
------------------------ -----------------------------
*YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
-------------------------- ----------------------------
1996 1995 1996 1995
------------- ------------ ------------- -------------
Sale of shares:
<S> <C> <C> <C> <C>
Class A ...................................14,815,923 3,891,326 17,384,851 30,447,088
Class B ................................... 7,109,733 -- 1,722,202 --
Class D ...................................12,391,966 3,258,190 8,129,479 12,061,813
Shares issued in payment
of dividends--Class A ..................... -- -- 46,553 --
Exchanged from associated
Funds:
Class A ................................... 4,872,301 1,207,701 4,299,624 2,337,457
Class B ................................... 38,810 -- 10,746 --
Class D ................................... 2,260,491 425,098 3,216,569 1,690,219
Shares issued in payment of gain distributions
Class A ................................... 543,143 117,325 2,420,521 59,388
Class D ................................... 481,944 99,928 918,803 10,354
---------- ---------- ----------- -----------
Total ........................................42,514,311 8,999,568 38,149,348 46,606,319
---------- ---------- ----------- -----------
Shares repurchased:
Class A ...................................(2,088,149) (732,207) (7,730,984) (2,851,418)
Class B ................................... (60,958) -- (21,522) --
Class D ...................................(1,186,520) (398,296) (2,466,759) (578,504)
Exchanged into associated
Funds:
Class A ...................................(2,373,469) (989,792) (6,549,438) (1,731,922)
Class B ................................... (22,416) -- (13,343) --
Class D ................................... (822,351) (357,856) (4,547,765) (1,419,748)
----------- ---------- ----------- -----------
Total ........................................(6,553,863) (2,478,151) (21,329,811) (6,581,592)
----------- ---------- ----------- -----------
Increase in shares .......................... 35,960,448 6,521,417 16,819,537 40,024,727
=========== ========== =========== ===========
</TABLE>
50
<PAGE>
- --------------------------------------------------------------------------------
8. At October 31, 1996, the Fund had outstanding forward exchange currency
contracts to purchase or sell foreign currencies as follows:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US $ DATE VALUE US $ (DEPRECIATION)
----------- ------------- ------------- ------------- ------------- ---------------
International Fund
Purchases:
<S> <C> <C> <C> <C> <C>
British Pounds 224,769 366,103 11/04/96 365,800 $ (303)
Japanese Yen 533,765,000 4,928,806 11/13/96 4,686,260 (242,546)
-----------
(242,849)
-----------
Sales:
Swiss Francs 1,343,184 1,068,648 11/01/96 1,059,293 9,355
French Francs 14,087,640 2,800,000 11/08/96 2,749,398 50,602
GermanDeutschemarks 3,105,900 2,100,000 11/08/96 2,046,722 53,278
Japanese Yen 533,765,000 5,000,000 11/13/96 4,686,260 313,740
-----------
426,975
-----------
$ 184,126
===========
EMERGING MARKETS GROWTH FUND
Sales:
IndonesianRupiahs 1,037,255,129 445,365 11/04/96 445,308 $ 57
Thai Bahts 12,229,065 429,289 11/04/96 429,327 (38)
-----------
$ 19
-----------
GLOBAL GROWTH OPPORTUNITIES FUND
Purchases:
MalaysianRinggits 360,669 142,613 11/01/96 142,726 $ 113
Japanese Yen 683,219,200 6,308,871 11/13/96 5,998,413 (310,458)
-----------
(310,345)
-----------
SALES:
French Francs 4,716,755 923,224 11/05/96 920,980 2,244
Japanese Yen 683,219,200 6,400,000 11/13/96 5,998,413 401,587
-----------
403,831
-----------
$ 93,486
===========
GLOBAL SMALLER COMPANIES FUND
Purchases:
British Pounds 676,272 1,095,898 11/01/96 1,100,598 $ 4,700
Malaysian Ringgits 691,826 273,557 11/01/96 273,774 217
Malaysian Ringgits 53,707 21,257 11/04/96 21,253 (4)
Japanese Yen 1,697,372,700 15,673,602 11/13/96 14,902,306 (771,296)
-----------
(766,383)
-----------
SALES:
French Francs 32,703,450 6,500,000 11/08/96 6,382,531 117,469
German Deutschemarks 7,395,000 5,000,000 11/08/96 4,873,147 126,853
Japanese Yen 1,697,372,700 15,900,000 11/13/96 14,902,306 997,694
-----------
1,242,016
-----------
$ 475,633
===========
GLOBAL TECHNOLOGY FUND
Purchases:
Japanese Yen 21,330 189 10/28/96 187 $ (2)
-----------
Sales:
Japanese Yen 4,650,605,000 41,387,641 01/31/97 41,276,338 111,303
-----------
$ 111,301
===========
</TABLE>
- ----------
* Commencement of operations.
51
<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 each Class' beginning net asset value to
the ending net asset value so that they can 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 each Class' performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset value,
and then sold their shares at the net asset value per share on the last day of
the period. The total return computations do not reflect any sales charges
investors may incur in purchasing or selling shares of each Series. The total
returns for periods of less than one year are not annualized.
Average commission rate paid represents the average commissions 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 the
fiscal periods beginning November 1, 1995.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- ----------
YEAR ENDED OCTOBER 31, 4/7/92* 4/22/96**
----------------------------------------- TO TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 1994 1993 10/31/92 10/31/96
----- ----- ----- ----- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.71 $17.67 $15.98 $11.89 $12.00 $17.38
------ ------ ------ ------ ------ ------
Net investment income (loss)***......................... 0.05 0.06 0.04 0.04 0.08 (0.03)
Net realized and unrealized
investment gain (loss)................................ 1.77 (0.42) 0.91 4.25 (0.23) (0.54)
Net realized and unrealized gain (loss) on
foreign currency transactions......................... (0.44) 0.09 1.08 (0.17) 0.04 (0.07)
------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations.......... 1.38 (0.27) 2.03 4.12 (0.11) (0.64)
Dividends paid.......................................... -- -- (0.01) (0.03) -- --
Distributions from net gain realized.................... (0.92) (0.69) (0.33) -- -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value.............. 0.46 (0.96) 1.69 4.09 (0.11) (0.64)
------ ------ ------ ------ ------ ------
Net asset value, end of period.......................... $17.17 $16.71 $17.67 $15.98 $11.89 $16.74
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: 8.43% (1.24)% 12.85% 34.78% (0.92)% (3.68)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.81% 1.69% 1.63% 1.75% 1.75%+ 2.66%+
Net investment income (loss) to average
net assets............................................ 0.28% 0.35% 0.27% 0.27% 1.25%+ (0.35)%+
Portfolio turnover...................................... 55.71% 60.70% 39.59% 46.17% 12.77% 55.71%+++
Average commission rate paid............................ $0.0180 $0.0180+++
Net assets, end of period (000s omitted)................ $50,998 $48,763 $62,922 $33,134 $14,680 $2,843
Without management fee waiver and expense
reimbursement***
Net investment income (loss) per share.................. $(0.04) --
Ratios:
Expenses to average net assets........................ 2.30% 2.92%+
Net investment income (loss) to
average net assets.................................. (0.28)% 0.08%+
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS D
----------------------------------------
YEAR ENDED OCTOBER 31, 9/21/93**
----------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 1994 10/31/93
----- ----- ----- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.43 $17.53 $15.96 $15.23
------ ------ ------ ------
Net investment income (loss)***......................... (0.08) (0.07) (0.09) (0.03)
Net realized and unrealized
investment gain (loss)................................ 1.75 (0.43) 0.91 1.17
Net realized and unrealized gain (loss) on
foreign currency transactions......................... (0.44) 0.09 1.08 (0.41)
------ ------ ------ ------
Increase (decrease) from investment operations.......... 1.23 (0.41) 1.90 0.73
Dividends paid.......................................... -- -- -- --
Distributions from net gain realized.................... (0.92) (0.69) (0.33) --
------ ------ ------ ------
Net increase (decrease) in net asset value.............. 0.31 (1.10) 1.57 0.73
------ ------ ------ ------
Net asset value, end of period.......................... $16.74 $16.43 17.53 15.96
====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: 7.62% (2.08)% 12.03 4.79%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 2.64% 2.50% 2.50% 2.50%+
Net investment income (loss) to average
net assets............................................ 0.47% (0.44)% (0.53)% (1.86)%+
Portfolio turnover...................................... 55.71% 60.70% 39.59% 46.17%++
Average commission rate paid............................ $0.0180
Net assets, end of period (000s omitted)................ $47,917 $31,273 $19,903 $1,648
Without management fee waiver and expense
reimbursement***
Net investment income (loss) per share.................. $(0.09) $(0.11) $(0.11)
Ratios:
Expenses to average net assets........................ 2.62% 2.67% 8.49%+
Net investment income (loss) to
average net assets.................................. (0.56)% (0.70)% (7.84)%+
</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 year ended October 31, 1996.
See Notes to Financial Statements.
52
<PAGE>
<TABLE>
<CAPTION>
EMERGING MARKETS GROWTH FUND
--------------------------------------------
CLASS A CLASS B CLASS D
---------- ---------- ----------
5/28/96** 5/28/96** 5/28/96**
PER SHARE OPERATING PERFORMANCE: TO 10/31/96 TO 10/31/96 TO 10/31/96
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period...................... $7.14 $7.14 $7.14
------ ------ ------
Net investment income (loss)***........................... (0.02) (0.04) (0.04)
Net realized and unrealized investment gain (loss)........ (0.25) (0.25) (0.25)
Net realized and unrealized gain (loss) on
foreign currency transactions........................... (0.09) (0.09) (0.09)
------ ------ ------
Increase (decrease) from investment operations............ (0.36) (0.38) (0.38)
Dividends paid............................................ -- -- --
Distributions from net gain realized...................... -- -- --
------ ------ ------
Net increase (decrease) in net asset value................ (0.36) (0.38) (0.38)
------ ------ ------
Net asset value, end of period............................ $6.78 $6.76 $6.76
====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: (5.04)% (5.32)% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets............................ 2.22%+ 3.00%+ 3.00%+
Net investment income (loss) to average
net assets.............................................. (0.69)%+ (1.47)%+ (1.47)%+
Portfolio turnover........................................ 12.24% 12.24% 12.24%
Average commission rate paid.............................. $0.0156 $0.0156 $0.0156
Net assets, end of period (000s omitted).................. $19,864 $10,541 $13,664
Without management fee waiver and expense
reimbursement***
Net investment loss per share............................. $(0.05) $(0.07) $(0.07)
Ratios:
Expenses to average net assets.......................... 3.02%+ 3.80%+ 3.80%+
Net investment loss to average net assets............... (1.49)%+ (2.27)%+ (2.27)%+
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH OPPORTUNITIES FUND
--------------------------------------------
CLASS A CLASS B CLASS D
---------- ---------- ----------
11/1/95** 4/22/96** 11/1/95**
PER SHARE OPERATING PERFORMANCE: TO 10/31/96 TO 10/31/96 TO 10/31/96
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period...................... $7.14 $8.04 $7.14
------ ------ ------
Net investment income (loss)***........................... (0.03) (0.04) (0.09)
Net realized and unrealized investment gain (loss)........ 1.12 0.06 1.12
Net realized and unrealized gain (loss) on
foreign currency transactions........................... (0.15) (0.04) (0.15)
------ ------ ------
Increase (decrease) from investment operations............ 0.94 (0.02) 0.88
Dividends paid............................................ -- -- --
Distributions from net gain realized...................... -- -- --
------ ------ ------
Net increase (decrease) in net asset value................ 0.94 (0.02) 0.88
------ ------ ------
Net asset value, end of period............................ $8.08 $8.02 $8.02
====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: 13.17% (0.25)% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets............................ 1.91% 2.53%+ 2.67%
Net investment income (loss) to average
net assets.............................................. (0.53)% (1.13)%+ (1.25)%
Portfolio turnover........................................ 31.44% 31.44%+++ 31.44%
Average commission rate paid.............................. $0.0160 $0.0160+++ $0.0160
Net assets, end of period (000s omitted).................. $107,509 $9,257 $53,540
Without management fee waiver and expense
reimbursement***
Net investment loss per share.............................
Ratios:
Expenses to average net assets..........................
Net investment loss to average net assets...............
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- ----------
YEAR ENDED OCTOBER 31, 9/9/92* 4/22/96**
----------------------------------------- TO TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 1994 1993 10/31/92 10/31/96
----- ----- ----- ----- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.90 $11.93 $9.98 $7.15 $7.14 $14.44
------ ------ ------ ------ ------ ------
Net investment income (loss)***......................... -- (0.02) (0.08) (0.02) -- (0.06)
Net realized and unrealized investment gain............. 2.38 2.24 1.57 3.07 0.02 0.33
Net realized and unrealized investment gain on
foreign currency transactions......................... (0.18) 0.08 0.52 (0.20) (0.01) 0.01
------ ------ ------ ------ ------ ------
Increase from investment operations..................... 2.20 2.30 2.01 2.85 0.01 0.28
Dividends paid.......................................... -- -- -- (0.02) -- --
Distributions from net gain realized.................... (0.96) (0.33) (0.06) -- -- --
------ ------ ------ ------ ------ ------
Net increase in net asset value......................... 1.24 1.97 1.95 2.83 0.01 0.28
------ ------ ------ ------ ------ ------
Net asset value, end of period.......................... $15.14 $13.90 $11.93 $9.98 $7.15 $14.72
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: 16.95% 20.10% 20.28% 39.86% 0.14% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 1.75% 1.83% 1.92% 1.98% 1.75%+ 2.54%
Net investment income (loss) to average
net assets............................................ 0.01% (0.20)% (0.77)% (0.29)% 0.13%+ (0.80)%
Portfolio turnover...................................... 45.38% 63.05% 62.47% 60.03% -- 45.38%+++
Average commission rate paid............................ $0.0211 $0.0211+++
Net assets, end of period (000s omitted)................ $350,359 $102,479 $46,269 $20,703 $1,562 $103,968
Without management fee waiver and expense
reimbursement***
Net investment loss per share........................... $(0.18) $(0.07)
Ratios:
Expenses to average net assets........................ 3.90% 12.28%+
Net investment income (loss) to
average net assets.................................. 2.21% (10.44)%+
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES FUND
- ----------------------------------------------------------------------------------------------------
CLASS D
-----------------------------------------
YEAR ENDED OCTOBER 31, 5/3/93**
----------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 1994 10/31/93
----- ----- ----- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.63 $11.80 $9.94 $8.52
------ ------ ------ ------
Net investment income (loss)***......................... (0.11) (0.12) (0.16) (0.05)
Net realized and unrealized investment gain............. 2.34 2.20 1.57 1.60
Net realized and unrealized investment gain on
foreign currency transactions......................... (0.18) 0.08 0.51 (0.13)
------ ------ ------ ------
Increase from investment operations..................... 2.05 2.16 1.92 1.42
Dividends paid.......................................... -- -- -- --
Distributions from net gain realized.................... (0.96) (0.33) (0.06) --
------ ------ ------ ------
Net increase in net asset value......................... 1.09 1.83 1.86 1.42
------ ------ ------ ------
Net asset value, end of period.......................... $14.72 $13.63 $11.80 $9.94
====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: 16.14% 19.11% 19.45% 16.67%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets.......................... 2.51% 2.61% 2.70% 2.75%+
Net investment income (loss) to average
net assets............................................ (0.75)% (0.97)% (1.53)% (1.35)%+
Portfolio turnover...................................... 45.38% 63.05% 62.47% 60.03%++
Average commission rate paid............................ $0.0211
Net assets, end of period (000s omitted)................ $285,477 $85,548 $38,317 $10,344
Without management fee waiver and expense
reimbursement***
Net investment loss per share........................... $(0.11)
Ratios:
Expenses to average net assets........................ 4.25%+
Net investment income (loss) to
average net assets.................................. (2.85)%+
</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 year ended October 31, 1996.
See Notes to Financial Statements.
53
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
GLOBAL TECHNOLOGY FUND
---------------------------------------------------------
CLASS A CLASS B
------------------------------------------ ----------
YEAR ENDED OCTOBER 31, 5/23/94** 4/22/96**
--------------------------- TO TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 10/31/94 10/31/96
------ ------ -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.05 $8.37 $7.14 $11.47
------ ------ ------ ------
Net investment loss***.................................... (0.08) (0.10) (0.01) (0.08)
Net realized and unrealized investment gain (loss)........ (0.92) 4.90 1.08 (0.39)
Net realized and unrealized gain (loss) on
foreign currency transactions........................... 0.05 (0.05) 0.16 0.09
------ ------ ------ ------
Increase (decrease) from investment operations............ (0.95) 4.75 1.23 (0.38)
Dividends paid............................................ (0.02) -- -- --
Distributions from net gain realized...................... (0.77) (0.07) -- --
------ ------ ------ ------
Net increase (decrease) in net asset value................ (1.74) 4.68 1.23 (0.38)
------ ------ ------ ------
Net asset value, end of period $11.31 $13.05 $8.37 $11.09
====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: (7.33)% 57.31% 17.23% (3.31)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets............................ 1.75% 1.91% 2.00%+ 2.51%+
Net investment income (loss) to average
net assets.............................................. (0.74)% (0.89)% (0.45)%+ (1.40)%+
Portfolio turnover........................................ 73.00% 87.42% 29.20% 73.00%+++
Average commission rate paid $0.0182 $0.0182+++
Net assets, end of period (000s omitted).................. $499,858 $447,732 $50,719 $18,840
Without management fee waiver and expense
reimbursement***
Net investment loss per share............................. $(0.02)
Ratios:
Expenses to average net assets.......................... 2.18%+
Net investment loss to average net assets............... (0.63)%+
</TABLE>
<TABLE>
<CAPTION>
GLOBAL TECHNOLOGY FUND
- ----------------------------------------------------------------------------------------------------
CLASS D
---------------------------------------
YEAR ENDED OCTOBER 31, 5/23/94**
-------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1996 1995 10/31/94
----- ----- -------
<S> <C> <C> <C>
Net asset value, beginning of period $12.89 $8.34 $7.14
------ ------ ------
Net investment loss***.................................... (0.17) (0.18) (0.04)
Net realized and unrealized investment gain (loss)........ (0.91) 4.85 1.08
Net realized and unrealized gain (loss) on
foreign currency transactions........................... 0.05 (0.05) 0.16
------ ------ ------
Increase (decrease) from investment operations............ (1.03) 4.62 1.20
Dividends paid............................................ -- -- --
Distributions from net gain realized...................... (0.77) (0.07) --
------ ------ ------
Net increase (decrease) in net asset value................ (1.80) 4.55 1.20
------ ------ ------
Net asset value, end of period $11.09 $12.89 $8.34
====== ====== ======
TOTAL RETURN BASED ON NET ASSET
VALUE: (8.07)% 55.95% 16.81%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets............................ 2.52% 2.66% 2.75%+
Net investment income (loss) to average
net assets.............................................. (1.50)% (1.63)% (1.22)%+
Portfolio turnover........................................ 73.00% 87.42% 29.20%
Average commission rate paid $0.0182
Net assets, end of period (000s omitted).................. $197,412 $161,622 $6,499
Without management fee waiver and expense
reimbursement***
Net investment loss per share............................. $(0.06)
Ratios:
Expenses to average net assets.......................... 3.36%+
Net investment loss to average net assets............... (1.83)%+
</TABLE>
- ----------
** 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, 1996.
See Notes to Financial Statements.
54
<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 Emerging Markets
Growth 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 October 31, 1996, the related statements of operations for
the year/period then ended and of changes in net assets (1) for each of the
years in the two-year period then ended, for the International Fund, the Global
Smaller Companies Fund, and the Global Technology Fund, (2) for the year then
ended for the Global Growth Opportunities Fund, and (3) for the period May 28,
1996 (commencement of operations) to October 31, 1996, for the Emerging Markets
Growth Fund and the financial highlights for each of the periods presented.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 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 October 31, 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
December 2, 1996
================================================================================
55
<PAGE>
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
================================================================================
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2
DEAN, Fletcher School of Law and
Diplomacy at Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3
PRESIDENT, Sarah Lawrence College
TRUSTEE,
Committee for Economic Development
DIRECTOR, NYNEX
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2
CHAIRMAN AND CEO,
Kerr-McGee Corporation
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
DIRECTOR,
Commonwealth Aluminum Corporation
BETSY S. MICHEL 2
DIRECTOR OR TRUSTEE,
Various Organizations
WILLIAM C. MORRIS 1
CHAIRMAN
CHAIRMAN OF THE BOARD,
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 OR TRUSTEE,
Various Organizations
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
PRESIDENT AND MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
- ----------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
================================================================================
56
<PAGE>
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
================================================================================
William C. Morris
CHAIRMAN
Brian T. Zino
PRESIDENT
Brian Ashford-Russell
VICE PRESIDENT
Peter Bassett
VICE PRESIDENT
Iain C. Clark
VICE PRESIDENT
Nitin Mehta
VICE PRESIDENT
Arsen Mrakovcic
VICE PRESIDENT
Loris D. Muzzatti
VICE PRESIDENT
Lawrence P. Vogel
VICE PRESIDENT
Paul H. Wick
VICE PRESIDENT
Thomas G. Rose
TREASURER
Frank J. Nasta
SECRETARY
- --------------------------------------------------------------------------------
MANAGER
J.& W. Seligman &Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan &Cromwell
INDEPENDENT AUDITORS
Deloitte &Touche LLP
SUBADVISER
Seligman Henderson Co.
100 Park Avenue
New York, NY 10017
GENERAL DISTRIBUTOR
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
(800) 445-1777 Retirement Plan
Services
(800) 622-4597 24-Hour Automated
Telephone Access
Service
================================================================================
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.
