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SELIGMAN
[WORLD MAP]
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
International Fund
Emerging Markets Growth Fund
Global Growth Opportunities Fund
Global Smaller Companies Fund
Global Technology Fund
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INVESTING AROUND THE WORLD FOR CAPITAL APPRECIATION
APRIL 30, 1997 o MID-YEAR REPORT
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J. & W. SELIGMAN & CO. INCORPORATED
OVER THE LONG TERM
J. & W. Seligman & Co. Incorporated has been providing financial services for
more than 130 years. Since 1864, 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 investments of 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 in 1991. Together, the two firms have more
than 200 years of investment experience, and manage more than $35 billion in
combined assets. Seligman manages more than 50 investment portfolios, including
Tri-Continental Corporation, which was established in 1929. Henderson manages
more than 60 investment portfolios, including four 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.
[PHOTO]
SELIGMAN
ESTABLISHED 1864
[PHOTO]
HENDERSON
INVESTING SINCE 1872
[WORLD MAP]
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TO THE SHAREHOLDERS
We are pleased to provide you with this Mid-Year 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. Overall, the
investment results for the six months ended April 30, 1997, were strong.
Fund-specific information begins on page 2.
In the US, economic growth improved steadily during the period, with
exceptionally low inflation. Nevertheless, the Federal Reserve Board raised
interest rates on March 25. The positive economic fundamentals were supported by
the strength of the US Dollar, which rose quite strongly against most European
currencies and the Yen. In the equity market, corporate profit growth remained
solid, first quarter earnings exceeded analysts' expectations, and continued net
mutual fund inflows improved the overall performance of the equity market,
despite increased volatility in March and April.
Economic strength persisted in the UK, driven by improving consumption that
led to a very strong Sterling. Sterling's strength, however, began to dampen the
profit outlook for export companies. The UK equity market rose despite concerns
about the possibility of rising interest rates and lower corporate earnings
growth. However, the main event affecting the UK was the General Election on May
1, which marked a landslide victory for the Labour Party after 18 years of
Conservative rule. The first action of the new government was to increase
short-term interest rates by 0.25%, and to allow the Bank of England to set
interest rate policy. Overall, this news was seen as positive, prompting a
further rise in both the equity and bond markets.
In Continental Europe, economic growth took some time to get under way, but
improved by late 1996. The significant weakness of most currencies against the
US Dollar accelerated the process, leading to an export-driven recovery. While
easy monetary policy continued with no significant changes in interest rates,
fiscal policy remained tight, as most countries sought to meet the budget
deficit criteria required for monetary union by the Maastricht Treaty. Overall,
the background was favorable for the Continental European equity markets, which
performed very well as a group through April. However, the Socialist victory in
the recent French elections has caused some concern as to whether the austere
fiscal policies dictated by the Maastricht Treaty are still politically
feasible. Though European Monetary Union remains likely, it may be delayed, or
may include more countries than originally planned, such as Italy and Spain.
Nonetheless, the current upswing in the economic cycle may help the French
Socialist government reconcile domestic needs for jobs and economic growth with
the sober fiscal practices outlined in the Maastricht Treaty. While the French
markets will probably be volatile in the short term, they should stabilize as
policy changes are implemented.
In Japan, interest rates stood at record lows. This substantially weakened
the Yen, which created a positive environment for the export sector. The
domestic economy improved somewhat, at least statistically, but confidence
remained very low. Consequently, the equity markets posted poor results despite
the continued recovery of corporate profits.
Elsewhere in the Pacific, the picture was mixed. China appeared to be easing
monetary policy, giving a boost to the economies of Hong Kong and Taiwan. The
Thai equity market collapsed, leading to fears of overheating and currency
problems elsewhere in Southeast Asia. In Latin America, markets posted very
strong performance, as the economies generally improved and there were
significant international cash inflows.
Looking ahead, we believe the overall environment for global equity markets
and the Funds remains favorable. Global equity markets should continue to be
supported by reasonable economic growth, stable inflation, and stable-to-easy
monetary policies.
By order of the Board of Directors,
/s/William C. Morris /s/Brian T. Zino /s/Iain C. Clark
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William C. Morris Brian T. Zino Iain C. Clark
Chairman President Chief Investment Officer
Seligman Henderson Co.
May 30, 1997
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1
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SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
<TABLE>
<CAPTION>
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EMERGING GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INVESTMENT RESULTS INTERNATIONAL MARKETS GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
APRIL 30, 1997 FUND FUND FUND FUND FUND
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<S> <C> <C> <C> <C> <C>
NET ASSETS (in millions)
Class A $46.6 $39.6 $106.5 $386.5 $520.1
Class B 4.7 22.2 14.6 179.7 32.4
Class D 42.5 28.2 59.3 331.8 203.7
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Total $93.8 $90.0 $180.4 $898.0 $756.2
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CAPITAL GAIN DISTRIBUTIONS
(Class A, Class B, and Class D)* $0.885 -- -- $0.730 --
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TOTAL RETURNS**
Class A
Six Months:
With sales charge1 0.86% 12.22% 0.35% (6.79)% 8.76%
Without sales charge2 5.91 17.85 5.32 (2.12) 14.15
Class B
Six Months:
With CDSL1 0.44 12.31 (0.01) (7.17) 8.80
Without CDSL2 5.44 17.31 4.99 (2.53) 13.80
Class D
Six Months:
With CDSL1 4.44 16.31 3.99 (3.46) 12.80
Without CDSL2 5.44 17.31 4.99 (2.53) 13.80
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AVERAGE ANNUAL TOTAL
RETURNS
Class A
One Year:
With sales charge1 (2.60)% n/a (0.70)% (6.85)% 0.86%
Without sales charge2 2.28 n/a 4.29 (2.18) 5.91
Five Years:
With sales charge1 9.97 n/a n/a n/a n/a
Without sales charge2 11.06 n/a n/a n/a n/a
Since inception: 4/7/92 5/28/96** 11/1/95 9/9/92 5/23/94
With sales charge1 10.10 6.53 8.81 18.57 23.44
Without sales charge2 11.16 11.91 12.45 19.84 25.52
Class B
One Year:
With CDSL1 (3.37)% n/a (1.43)% (7.55)% 0.17%
Without CDSL2 1.44 n/a 3.57 (2.93) 5.17
Since inception: 4/22/96 5/28/96** 4/22/96 4/22/96 4/22/96
With CDSL1 (2.25) 6.06 0.71 (4.33) 5.89
Without CDSL2 1.52 11.06 4.62 (0.63) 9.80
Class D
One Year:
With CDSL1 0.48 n/a 2.57 (3.85) 4.17
Without CDSL2 1.44 n/a 3.57 (2.93) 5.17
Since inception: 9/21/93 5/28/96** 11/1/95 5/3/93 5/23/94
With CDSL1 n/a 10.06 n/a n/a n/a
Without CDSL2 7.65 11.06 11.65 17.10 24.52
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</TABLE>
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SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
<TABLE>
<CAPTION>
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EMERGING GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL MARKETS GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND FUND
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<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
April 30, 1997
Class A $17.28 $7.99 $8.51 $14.12 $12.91
Class B 16.75 7.93 8.42 13.65 12.62
Class D 16.75 7.93 8.42 13.65 12.62
October 31, 1996
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
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MAXIMUM OFFERING PRICE PER
SHARE
April 30, 1997
Class A $18.14 $8.39 $8.93 $14.82 $13.55
Class B 16.75 7.93 8.42 13.65 12.62
Class D 16.75 7.93 8.42 13.65 12.62
October 31, 1996
Class A 18.03 7.12 8.48 15.90 11.87
Class B 16.74 6.76 8.02 14.72 11.09
Class D 16.74 6.76 8.02 14.72 11.09
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</TABLE>
* Represents per share amount paid on November 22, 1996.
** Returns for periods of less than one year are not annualized.
1 Represents the average compound rate of return per year over the specified
period, and reflects the changes in price and assumes all distributions
within the periods are invested in additional shares; also reflects the
effect of the 4.75% maximum initial sales charge for Class A or the
contingent deferred sales load ("CDSL") for Classes B and D, if applicable.
No adjustment was made to the International Fund Class A shares' performance
for periods prior to September 21, 1993, the commencement date of the annual
Administration, Shareholder Services and Distribution Plan fee of up to
0.25% of average daily net assets of Class A shares.
2 Represents the rate of return as above, but does not reflect the effect of
the 4.75% maximum initial sales charge or CDSL.
THE PERFORMANCES OF CLASS B AND CLASS D SHARES WILL BE GREATER OR LESS THAN THE
PERFORMANCE SHOWN FOR CLASS A SHARES, BASED ON THE DIFFERENCES IN SALES CHARGES
AND FEES PAID BY SHAREHOLDERS. 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.
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.
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3
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SELIGMAN HENDERSON
INTERNATIONAL FUND
IAIN C. CLARK,
PORTFOLIO MANAGER
[PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) JAMES ROBINSON, BEN ELWES, IAIN C. CLARK
(PORTFOLIO MANAGER), DAVID THORNTON, PETER BASSETT, (SEATED) STACEY NAVIN,
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 US.
During the past six months, international markets generally rose, and the
Morgan Stanley Capital International EAFE (Europe, Australasia, Far East)
Index was up 1.72% in US Dollar terms. Japan was the notable exception, as
both its stock market and currency were weak. Changing expectations
regarding the outlook for US interest rates led to increased volatility and
a developing divergence in performance among international equity markets.
UK
In the UK, the healthy rate of economic growth, which ran at a 4%
annualized rate, characterized the period. Though the UK market performed
well in the last six months, the recent strength of Sterling may hamper
future corporate profitability. The UK weighting was reduced from 16.7% to
15.6%, and strategy was changed to focus on domestic-related stocks --
whose profits would not be subject to currency-related losses -- such as
United Utilities, a water utility.
CONTINENTAL EUROPE
In Continental Europe, economic growth continued, albeit unevenly. The
underlying trend is upward, and very low interest rate levels combined with
weak domestic currencies should ensure that growth continues. The Fund's
overall investment in Continental Europe was increased from 38.8% to 43.4%.
Specifically, the Fund's holdings in Spain and Sweden were slightly
reduced, while holdings in the Netherlands and Germany were increased.
Regarding sector allocations, holdings in banking were reduced, while the
Fund's weighting in certain industrial cyclical sectors, including metal
stocks such as Thyssen, a German steel products manufacturer, were
increased in anticipation of heightened economic growth.
JAPAN
The economic recovery in Japan continued slowly. Domestic investors,
however, remained extremely nervous, and focused on the potential for
further fiscal tightening in 1997. We believe equity prices should rise,
given our positive view of Japan's rate of growth and the market's low
equity valuations, as measured by both price-to-book value and
price-to-cash flow ratios. New investments in Japan have been primarily in
domestic-related companies that should benefit from an economic upturn,
such as Autobacs Seven, a manufacturer and retailer of automobile and truck
parts.
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4
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SELIGMAN HENDERSON
INTERNATIONAL FUND
PACIFIC/EMERGING MARKETS
In the Pacific, where the electronics sector accounts for a significant
percentage of regional exports, economic growth was assisted by the
worldwide acceleration of the electronics industry. As for the stock
markets, performance was mixed. The best-performing markets were in Hong
Kong, China, and Taiwan, which were boosted by strong domestic liquidity.
Overall, the Fund's weighting in the Pacific was reduced to 8.3% from
15.4%, as we believe better investment opportunities exist elsewhere. On
the other hand, the Fund's weighting in the emerging markets was increased
from 5.4% to 11.3%. We expect Latin American and Emerging European markets
will perform well due to strong economic growth and increased capital
inflows.
OUTLOOK
Overall, the economic and interest-rate backgrounds remain positive for
most international markets. We expect several more years of growth with low
inflation. Despite the recent Socialist victory in France, our preferred
regions are Continental Europe, Japan, and the emerging markets, where
corporate profit growth still has the potential to be strongest.
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5
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SELIGMAN HENDERSON
INTERNATIONAL FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED APRIL 30, 1997
SHARES
---------------------
HOLDINGS
ADDITIONS INCREASE 4/30/97
- --------- . -------- ---------
Akzo Nobel (Netherlands) .......... 7,456 7,456
Banco Bilbao Vizcaya (Spain) ...... 14,678 14,678
Credit Communal Holding/
Dexia (Belgium) ................. 9,305 9,305
Desc (ADRs) (Mexico) .............. 29,694 29,694
Dixons Group (UK) ................. 85,000 85,000
ENI (Italy) ....................... 167,631 167,631
IRSA Inversiones y
Representaciones (GDRs)
(Argentina) ..................... 19,000 19,000
National Power (UK) ............... 125,000 125,000
Philips Electronics (Netherlands).. 22,412 22,412
Usinor Sacilor (France) ........... 83,996 83,996
SHARES
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HOLDINGS
REDUCTIONS DECREASE 4/30/97
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BAA (UK) ......................... 116,000 --
Banco de Santander (Spain) ....... 22,284 --
Deutsche Bank (Germany) .......... 23,950 --
DSM (Netherlands) ................ 8,973 --
HSBC Holdings (UK) ................ 38,800 18,000
Istituto Nazionale delle
Assicurazioni (Italy) .......... 794,477 --
Nippon Telegraph
& Telephone (Japan) ............. 112 231
Siebe (UK) ....................... 90,000 --
Societe Generale (France) ........ 10,303 --
Westpac Banking (Australia) ...... 174,000 61,400
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT APRIL 30, 1997
Japan 21.4%
United Kingdom 15.6
Germany 10.1
France 9.9
Netherlands 6.5
Switzerland 6.5
Spain 3.7
Brazil 3.0
Sweden 2.6
Italy 2.5
Australia 1.8
Hong Kong 1.7
Mexico 1.6
Argentina 1.5
India 1.5
Peru 1.2
Malaysia 1.1
Taiwan 1.1
Belgium 1.0
Singapore 1.0
China 0.7
Denmark 0.6
Portugal 0.6
Russia 0.6
Hungary 0.5
Croatia 0.4
Czech Republic 0.4
Indonesia 0.4
South Korea 0.4
Thailand 0.1
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Total 100.0%
LARGEST PORTFOLIO HOLDINGS
AT APRIL 30, 1997
SECURITY VALUE
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Toshiba (Japan) ....................... $1,990,706
Pioneer Electronic (Japan) ............ 1,930,850
Nippon Telegraph & Telephone (Japan) .. 1,628,298
Mitsubishi Materials (Japan) .......... 1,493,266
Sumitomo Metal Industries (Japan) ..... 1,416,114
STET Societa' Finanzaria
Telefonica (Italy) .................. 1,370,370
ING Groep (Netherlands) ............... 1,369,761
Cie Generale des Eaux (France) ........ 1,287,802
Usinor Sacilor (France) ............... 1,270,855
Tesco (UK) ............................ 1,270,708
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SELIGMAN HENDERSON
EMERGING MARKETS GROWTH FUND
PETER BASSETT,
PORTFOLIO MANAGER
[PICTURE]
INTERNATIONAL TEAM:(FROM LEFT) NICHOLAS VARDY, MONICA BALL, PETER BASSETT
(PORTFOLIO MANAGER), KIRSTEEN MORRISON
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.
In the last six months, the International Finance Corporation (IFC)
Global Composite Index, a leading emerging markets index, rose 7.8% in US
Dollar terms. Capital inflows to emerging markets were strong, as both
North American and European investors renewed their interest in these
markets. The regions which benefited most from this investment trend were
Emerging Europe, particularly Eastern Europe, and Latin America, which was
quietly successful in 1996. In contrast, limited inflows to the Pacific
reflected a decline in investor interest, which was due primarily to a
downturn in economic conditions.
LATIN AMERICA
During the past six months, Latin American markets were strong, as
reflected by the 20% increase in the IFC Latin America Index. While the
32.7% rise in the Brazilian market -- caused by foreign recognition of the
value this market offered -- was notable, other markets also performed
well. The continuing performance of the Argentinean economy pushed its
market ahead 23.8%, while Mexico's market rose 15.5%. Smaller markets were
also buoyant, with Colombia up 20.2% and Peru rising 11.2%. The Fund
continued to hold larger core companies such as Telebras, a provider of
telecommunications services in Brazil, and added stocks such as IRSA
Inversiones y Representaciones, a real estate developer in Argentina.
CENTRAL/SOUTHERN EUROPE
Central/Southern Europe remained one of the most exciting emerging
investment areas. The Russian market's 66.2% increase drove the region's
overall results, though many other markets also benefited from significant
capital inflows, with Hungary up 39.5%. The only significant exception in
Central Europe was the Czech Republic, which experienced domestic economic
problems, and where the market was flat over the period. Southern European
markets were also buoyant, with Greece rising 33.6%, Portugal up 16.6%, and
Turkey up 28.6%. Investments in this region included some of the Fund's
best performers, such as Tatneft, an explorer and producer of oil and gas
in Russia; Pliva, a manufacturer of pharmaceutical products in Croatia; and
Portugal Telecom, a provider of telecommunications services. Overall, the
decision to overweight Central/Southern Europe was highly beneficial.
PACIFIC
Pacific markets were mixed in the last six months. Taiwan rose 25.1% as
lower interest rates increased domestic liquidity. On the other hand, South
Korea's market was adversely affected by both the Yen's weakness and
political uncertainty, falling 23.1%. Overall, markets in the Association
of South East Asian Nations (ASEAN) countries were weak, though Indonesia
managed to rise 7.0%. In Thailand, worries about the domestic currency and
financial system caused the market to fall 27.6%. With the exception of
Taiwan, the Fund was not significantly invested in this region, a policy
which lifted the Fund's performance relative to the IFC Global Composite
Index.
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7
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SELIGMAN HENDERSON
EMERGING MARKETS
GROWTH FUND
INDIAN SUBCONTINENT/AFRICA
Generally, equity markets in the Indian Subcontinent performed well due
to foreign and domestic investments, with India rising 11.1%. Here,
investors were attracted by falling domestic interest rates and a budget
which included substantial economic reforms. Despite political instability
toward the end of the period, the Indian market had a strong rally in
April. The market in Pakistan was similarly lifted due to hopes of reform,
rising 11.3% as negotiations between the new government and the
International Monetary Fund proceeded. South Africa continued to be
hampered by high domestic interest rates, and the market posted an increase
of only 5.5%. Overall, the Fund benefited from its investments in quality
growth stocks, including Videsh Sanchar Nigam, a provider of international
telecommunications services in India, which had particularly strong
performance.
OUTLOOK
The combination of steady economic growth in most of the world and benign
interest rate levels creates a promising environment for emerging markets
and the Fund. Sentiment among international investors remains extremely
positive, with low valuations and good growth forecasts attracting
increased attention. We believe the resulting inflows of capital are likely
to drive emerging markets higher. Current markets for which the outlook is
positive, and in which the Fund is substantially invested, include Brazil,
Russia, Hungary, Taiwan, and China. The Fund continues to maintain a
portfolio of larger, high-quality companies that should benefit from this
positive economic environment.
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8
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SELIGMAN HENDERSON
EMERGING MARKETS
GROWTH FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED APRIL 30, 1997
SHARES
-------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/97
- ------------- ----------- -----------
Banco Santander Chile
(ADRs) (Chile) .................. 65,200 65,200
Bufete Industrial
(ADRs) (Mexico) ................. 50,200 50,200
Empresas ICA Sociedad
Controladora (ADRs) (Mexico) .... 72,500 72,500
Liberty Life Association
of Africa (South Africa) ........ 43,000 43,000
Lojas Arapua (ADRs) (Brazil) ...... 49,235,300 49,235,300
Nizhny Novgorod Telephone
(RDCs) (Russia) ................. 13 13
Petroleo Brasileiro (Brazil) ...... 7,400,000 7,400,000
Siliconware Precision
Industries (GDRs) (Taiwan) ...... 80,000 80,000
Taiwan Opportunities
Fund (Taiwan) ................... 87,000 140,000
Tatneft (ADRs) (Russia) ........... 20,400 20,400
SHARES
-------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/97
- ------------- ----------- -----------
Bangkok Bank (Thailand) ........... 55,000 --
Companhia Cervejara
Brahma (Brazil) ................. 59,500 --
Companhia Energetica de
Sao Paulo (ADRs) (Brazil) 38,700 --
Disco (ADRs) (Argentina) .......... 36,000 --
Hellenic Bottling (Greece) ........ 17,600 --
Komercni Banka
(GDRs) (Czech Republic) ......... 23,000 --
Quimica Minera
Chile (ADRs) (Chile) ............ 8,500 --
Santa Isabel (ADRs) (Chile) ....... 22,500 --
South African Breweries
(South Africa) .................. 23,100 --
SPT Telecom (Czech Republic) ...... 4,900 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT APRIL 30, 1997
Brazil ............. 13.8%
Taiwan ............. 10.5
Mexico ............. 10.2
China .............. 7.2
India .............. 6.9
Russia ............. 5.9
South Africa ....... 5.9
Malaysia ........... 4.8
Argentina .......... 3.9
Hungary ............ 3.6
Philippines ........ 3.6
South Korea ........ 3.3
Egypt .............. 3.0
Indonesia .......... 2.9
Croatia ............ 2.9
Portugal ........... 2.9
Chile .............. 2.2
Peru ............... 2.2
Thailand ........... 2.0
Turkey ............. 0.9
Slovenia ........... 0.8
Greece ............. 0.5
Czech Republic ..... 0.1
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Total .............. 100.0%
LARGEST PORTFOLIO HOLDINGS
AT APRIL 30, 1997
SECURITY VALUE
- ----------- ------------
Telebras (ADRs) (Brazil) ................ $3,358,284
Taiwan Opportunities Fund (Taiwan) ...... 2,230,200
Qingling Motors (China) ................. 1,591,021
Siliconware Precision Industries
(GDRs) (Taiwan) ....................... 1,573,600
Petroleo Brasileiro (Brazil) ............ 1,555,733
Tatneft (ADRs) (Russia) ................. 1,496,952
Hindalco Industries (GDRs) (India) ...... 1,462,500
Perez (ADRs) (Argentina) ................ 1,426,806
China Steel (GDRs) (Taiwan) ............. 1,390,925
China Everbright-IHD Holdings (China) ... 1,370,601
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9
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SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
NITIN MEHTA AND
LORIS MUZZATTI,
PORTFOLIO MANAGERS
[PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) BEN ELWES, DAVID THORNTON, MICHAEL WOOD-MARTIN,
PETER BASSETT, (SEATED) STACEY NAVIN, NITIN MEHTA (PORTFOLIO MANAGER), KIRSTEEN
MORRISON
[PHOTO]
US TEAM: (FROM LEFT) LOUISE OH, NATALIE BILLON, LOUISE KNIGHT (ADMINISTRATIVE
ASSISTANT), 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.
With the notable exception of Japan, most global stock markets continued
to rally during the last six months. However, economic growth became more
differentiated by region; activity accelerated in the US and the UK while
growth was relatively sluggish in Japan and Continental Europe.
Importantly, the global interest rate cycle turned, as the UK and US
central banks increased interest rates after a sustained period of interest
rate stability, to rein in rapid economic growth.
US
As economic growth seemed to accelerate in the last quarter of 1996,
fears of inflationary pressures made investors cautious. However, these
fears were dispelled early in 1997, as economic evidence revealed that
inflation remained surprisingly subdued. As a result, the stock market
rallied strongly in the first quarter of 1997, but was dampened by the
Federal Reserve Board's increase in short-term interest rates on March 25.
However, a combination of lower-than-expected increases in inflationary
indicators and better-than-expected corporate earnings for the first
quarter allowed the market to reclaim earlier losses. In the period, new
purchases for the portfolio were concentrated primarily under the LEISURE
theme. The most significant additions to the portfolio under this theme
were Walt Disney, a leading operator of theme parks and hotels, and MGM
Grand, an owner and operator of resort and casino hotels.
UK
In the UK, the economy surged as the General Election neared, led by the
consumer and service sectors. Interest rates were raised to slow rapid
economic growth, which caused a substantial appreciation of Sterling.
Therefore, we reduced the Fund's exposure to stocks with significant
foreign earnings.
CONTINENTAL EUROPE
Early signs of greater economic vigor in Continental Europe abated late
in 1996. Both tighter fiscal policy, a result of the planned European
Monetary Union, and higher unemployment, due to corporate restructurings,
slowed economic growth. While the French elections may reduce enthusiasm
for fiscal austerity, there are indications that Continental European
economies are finally gathering momentum.
During the period, the export sector benefited from the continued
weakness of European currencies against the US Dollar. The Fund's strategy
of investing in businesses such as Adidas and Porsche, which have global
brand recognition, helped performance. As we expect the economic recovery
to broaden, generating higher investment and consumption, we further
focused on the CONSUMER IS KING theme. Several consumer growth stocks were
added to the portfolio, particularly in retail, eye-wear manufacturing, and
consumer electronics.
- ----
10
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SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
JAPAN
The Japanese market suffered a slump between November 1996 and January
1997, due to heightened fears that the government's decision to tighten
fiscal policy would stall economic growth. In addition, a weaker currency
exacerbated the losses of foreign investors, including the Fund. In
response to a rise in the consumption tax, we reduced investments in the
CONSUMER IS KING theme in favor of TECHNOLOGY. The Fund remains invested in
certain growth stocks that should benefit from increased domestic demand as
the economic environment improves.
PACIFIC
Overall, the Pacific economies and markets continued to suffer from lower
exports due to the rise of the US Dollar; structural problems related to
past excesses in the property market, as in Thailand; and the downturn in
the prices of commodity electronic products, such as memory chips. During
the period, the Fund's exposure to the region was reduced from 11.5% to
9.3%.
EMERGING MARKETS
Emerging markets surged higher in the first quarter of the new year, with
Eastern Europe and Latin America enjoying the most spectacular rises, due
to ample global inflows to this previously overlooked area. Improving
economic fundamentals and marked undervaluations were the major factors
behind the markets' rallies.
As the investment climate improved, the Fund's holdings in the emerging
markets were increased from 8.5% to 12.5%, primarily under the GLOBAL TRADE
theme, covering resources and infrastructure companies. The Fund invested
2.8% of its assets in Mexico, where inflation fell, growth increased, and
the currency was more stable. Two undervalued European energy stocks,
Gazprom in Russia and MOL Magyar Olaj-es Gazipari in Hungary, were also
added.
OUTLOOK
We believe that the rise in US interest rates seen in March does not
herald a global bear market. On the contrary, it is likely to extend the
long and enviable US economic expansion. In fact, the world economy is
generally in good shape, with strong prospects for low-inflationary growth
for several more years.
In the near term, we believe the US stock market may be nearing full
valuation. After a spectacular rise in corporate earnings since 1991, an
economic slowdown in the second half of 1997 could reduce earnings growth.
In a slower-growth economic environment, growth stocks should once again
command a premium. In Continental Europe, improving economic growth should
allow corporate earnings to rise. Similarly, Japanese growth should also
become much more robust as the economy finally escapes the grip of
deflation.
----
11
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SELIGMAN HENDERSON
GLOBAL GROWTH
OPPORTUNITIES FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED APRIL 30, 1997
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/97
- ------------- ----------- ------------
Boston Scientific (US) ............ 40,000 40,000
Desc (ADRs) (Mexico) .............. 108,474 108,474
Disney, Walt (US) ................. 25,000 25,000
Empresas ICA Sociedad
Controladora (ADRs) (Mexico) .... 134,000 134,000
HFS (US) .......................... 25,000 25,000
Koninklijke Van
Ommeren (Netherlands) ........... 39,715 39,715
Ladbroke Group (UK) ............... 500,000 500,000
MGM Grand (US) .................... 45,000 45,000
MOL Magyar Olaj-es
Gazipari (GDRs) (Hungary) ....... 110,000 110,000
Philips Electronics (Netherlands) . 37,900 37,900
SHARES
---------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/97
- -------------- ----------- ------------
Assa Abloy (Series B) (Sweden) .... 120,000 --
Coca-Cola Amatil (Australia) ...... 156,000 --
Guidant (US) ...................... 38,000 --
Home Depot (US) ................... 33,800 --
Joshin Denki (Japan) .............. 178,000 --
Kobenhavns Lufthavne
(Denmark) ....................... 20,100 --
Siebe (UK) ........................ 115,000 --
Singapore Press
Holding (Singapore) ............. 93,000 --
S.I.T.A. (France) ................. 9,800 --
SMH Neuenberg (Switzerland) ....... 13,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
PERCENTAGE OF INVESTMENTS BY COUNTRY
At April 30, 1997
United States ......... 24.4%
Japan ................. 12.3
United Kingdom ........ 11.9
Germany ............... 6.9
France ................ 5.6
Sweden ................ 4.4
Netherlands ........... 4.0
Spain ................. 3.3
Mexico ................ 2.8
Hungary ............... 2.6
Brazil ................ 2.5
Hong Kong ............. 2.2
Finland ............... 2.1
Thailand .............. 1.7
India ................. 1.6
Norway ................ 1.5
China ................. 1.4
Australia ............. 1.2
Malaysia .............. 1.2
Switzerland ........... 1.1
Peru .................. 1.0
Russia ................ 1.0
South Africa .......... 0.9
Singapore ............. 0.8
South Korea ........... 0.8
Italy ................. 0.7
Portugal .............. 0.1
- -----------------------------
Total 100.0%
LARGEST PORTFOLIO HOLDINGS
AT APRIL 30, 1997
SECURITY VALUE
- ----------- -----------
Telebras (ADRs) (Brazil) ................. $4,355,454
Microsoft (US) ........................... 4,108,813
SGS-Thomson Microelectronics (France) .... 3,996,312
Porsche (Germany) ........................ 3,140,693
L.M. Ericsson Telefon (Series B) (Sweden) 3,100,396
MBNA (US) ................................ 2,974,950
Tabacalera (Spain) ....................... 2,894,159
Adidas (Germany) ......................... 2,810,883
Desc (ADRs) (Mexico) ..................... 2,793,205
Pizza Express (UK) ....................... 2,741,596
- ----
12
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SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
IAIN C. CLARK AND
ARSEN MRAKOVCIC,
PORTFOLIO MANAGERS
[PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) ANDREW MCNALLY, WILLIAM GARNETT, HEATHER
MANNERS, ANDREW STACK, (SEATED) MIRANDA RICHARDS, IAIN C. CLARK (PORTFOLIO
MANAGER)
[PHOTO]
US TEAM: (FROM LEFT) RICK RUVKUN, LAWRENCE ROSSO, BRUCE ZIRMAN, (SEATED) ARSEN
MRAKOVCIC (PORTFOLIO MANAGER), TED HILLENMEYER. MISSING FROM PHOTO: HILARY SHANE
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.
In the six months ended April 30, equity market performance was split
along geographic lines. Western equity markets, including the US, UK, and
Continental Europe rose, while the Pacific region and Japan declined.
Within this broad regional picture, there were variations among countries.
In Europe, for example, performance in US Dollar terms ranged from a 4%
decrease in the Austrian equity market to a 19% increase in the Spanish
equity market. In general, however, small companies did not fare as well as
larger companies.
US
The performance of US small companies was disappointing, as they
continued to trail larger companies. The degree of divergence in
performance was surprising because the strength of the US Dollar, which has
been rising for some time, has historically been negative for larger
companies, whose foreign profits are reduced when the Dollar is strong.
However, significant mutual fund inflows into index funds and larger
companies' better-than-expected earnings growth mitigated the effect of the
rising Dollar. At the same time, small companies were more vulnerable to
the Federal Reserve Board's decision to increase interest rates, and more
susceptible to any earnings disappointments. Within the portfolio, new
purchases were concentrated in the retailing and consumer goods and
services sectors.
UK
The strength of the UK economy gathered pace and credibility in the last
six months, so much so that it was deemed necessary to raise interest rates
on May 2 to prevent the economy from overheating. Sterling strengthened
substantially in the last six months. The market as a whole stagnated
toward the end of the period, before the May 1 election and the threatened
interest rate increase. However, small companies performed well early in
1997. Generally, new purchases for the portfolio focused on niche areas of
the economy, including Games Workshop Group, a manufacturer and retailer of
specialty fantasy games; Electronics Boutique, an electronic games
retailer; and AEA Technology, a provider of engineering and research and
development services.
CONTINENTAL EUROPE
In Continental Europe, small companies generally moved in line with large
companies. There were clear signs of economic recovery in Europe --
especially in the export sectors of core Continental European countries
such as Germany and France. The Fund's weighting in France was increased
from 5% to 5.8%, while the weighting in Sweden and Denmark was decreased
because attractive valuations became hard to find. New purchases for the
Fund focused on stocks likely to benefit from the expected economic
recovery, and included strong niche companies involved in the automobile
parts industry such as ECIA and Montupet, both in France.
----
13
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SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
JAPAN
Japanese small companies underperformed larger companies substantially
over the period. While larger companies fell around 16%, small companies
fell more than 24% in US Dollar terms. This divergence was only partially
explained by the weakness of the Yen, which favored larger, export-related
companies. The continued pessimism regarding the domestic economy further
impacted small companies, which reached historically low valuations by the
end of April. Over the last six months, the Fund's weighting in Japan fell
from 18.4% to 13.8% -- largely as a result of market moves. New purchases
were focused in defensive sectors of the market, such as health care and
food-related stocks, and included Fujicco, a food manufacturer; Yokohama
Reito, a cold storage, freezing, and loading services company; and Hogy
Medical, a producer of disposable surgical gowns and medical supplies.
PACIFIC
In the Pacific, small-company stocks performed satisfactorily,
particularly in Hong Kong and Malaysia. The former was buoyed by improving
economic conditions in China, and the latter by continued economic growth.
In December, the Fund's exposure to the region's technology sector was
increased. Three stocks were purchased in Singapore: Amtek Engineering, a
manufacturer of precision metal parts; Informatics Holdings, an operator of
computer training schools; and Venture Manufacturing, a contract
manufacturer. A Hong Kong stock, Johnson Electric Holdings, a designer,
manufacturer, and marketer of micromotors, was also added. In March, the
strategic decision to re-enter the Thai market was implemented with the
purchase of Hana Microelectronics, a circuit board manufacturer. Tipco
Asphalt, a manufacturer and distributor of asphalt emulsion in Thailand,
was also added toward the end of April. Overall, the Fund's Pacific
weighting remained virtually unchanged at 7.2%, and most new additions were
focused in Indonesia and Malaysia.
OUTLOOK
The performance of small companies was disappointing relative to larger
companies in virtually all markets. In part, this reflected the liquidity
surge in global equity markets that focused on large-company stocks and
left small companies behind. Yet, in many areas, small companies have more
attractive valuations and their forecasted earnings growth is at least
equal to that of larger companies. We continue to believe small companies
will outperform, as investors begin to reassess the relative merits of
large and small companies.
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14
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SELIGMAN HENDERSON
GLOBAL SMALLER
COMPANIES FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED APRIL 30, 1997
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 4/30/97
- ------------- -------- --------
AccuStaff (US) ................ 350,000 350,000
Calpine (US) .................. 500,000 500,000
Ceridian (US) ................. 225,000 225,000
Cox Radio (Class A) (US) ...... 350,000 350,000
ECIA (France) ................. 36,166 41,467
Maxim Integrated Products (US) 125,000 175,000
Memtec (ADRs) (Australia) ..... 260,000 410,000
OM Group (US) ................. 200,000 200,000
Sola International (US) ....... 175,000 175,000
Watson Pharmaceuticals (US) ... 285,000 410,000
SHARES
--------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/97
- ------------- -------- --------
BMC Industries (US) ........... 200,000 --
Fine Host (US) ................ 196,000 --
FPA Medical Management (US) ... 200,000 --
Horizon Mental Health
Management (US) ............. 222,500 1 --
HUB Group (Class A) (US) ...... 150,000 --
Kampa-Haus (Germany) .......... 90,632 70,200
Medicis Pharmaceutical
(Class A) (US) .............. 100,000 --
Pomeroy Computer
Resources (US) .............. 138,000 --
Roosevelt Financial
Group (US) .................. 360,000 --
Synopsys (US) ................. 70,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
1 Includes 72,500 shares received as a result of a 3-for-2 stock split.
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT APRIL 30, 1997
United States ......... 32.6%
United Kingdom ........ 15.8
Japan ................. 13.8
France ................ 5.8
Germany ............... 4.6
Finland ............... 4.3
Sweden ................ 3.7
Netherlands ........... 3.1
Australia ............. 2.3
Hong Kong ............. 2.1
Norway ................ 2.0
Switzerland ........... 1.8
Denmark ............... 1.4
Singapore ............. 1.2
Italy ................. 1.0
Austria ............... 0.9
Canada ................ 0.8
Malaysia .............. 0.7
Brazil ................ 0.5
Israel ................ 0.4
India ................. 0.3
Taiwan ................ 0.3
Thailand .............. 0.3
China ................. 0.1
Indonesia ............. 0.1
South Korea ........... 0.1
- -----------------------------
Total 100.0%
LARGEST PORTFOLIO HOLDINGS
AT APRIL 30, 1997
SECURITY VALUE
- ----------- ------------
CalEnergy (US) .......................... $15,650,000
Watson Pharmaceuticals (US) ............. 14,657,500
Ekornes (Norway) ........................ 11,687,504
FactSet Research Systems (US) ........... 10,125,000
Pizza Express (UK) ...................... 9,623,564
AmeriSource Health (Class A) (US) ....... 9,594,375
Memtec (ADRs) (Australia) ............... 9,430,000
Universal Outdoor Holdings (US) ......... 9,416,000
Maxim Integrated Products (US) .......... 9,242,188
Rauma (Finland) ......................... 8,978,135
----
15
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SELIGMAN HENDERSON
GLOBAL TECHNOLOGY FUND
BRIAN ASHFORD-RUSSELL
AND PAUL H. WICK,
PORTFOLIO MANAGERS
[PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) EMMA PARKINSON, TIM WOOLLEY, DAVID MAGLIOCCO,
BRIAN ASHFORD-RUSSELL (PORTFOLIO MANAGER)
[PHOTO]
US TEAM: (FROM LEFT) PAUL KRIEGER, LAWRENCE ROSSO, (SEATED) PAUL WICK (PORTFOLIO
MANAGER), CAROLYN ROGERS, STORM BOSWICK
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.
Technology stocks around the world had mixed performance in the last six
months. Overall, Japanese technology stocks produced the best relative
returns, although the overall market performed poorly. Over the period, UK
electronics stocks posted weak performance, while US technology stocks were
remarkably volatile. The Fund's performance improved in the last six
months, benefiting from its significant weighting in the components and
semiconductor markets, and its very modest exposure to smaller-company US
technology stocks.
GLOBAL TECHNOLOGY MARKETS
COMMUNICATIONS
In the US, technology stocks experienced a pronounced sell-off from their
January highs, triggered by several disappointing earnings announcements
from networking companies. Product transition issues, combined with a
spending pause in the domestic telecommunications market and weak Japanese
demand, led to a number of earnings shortfalls and some dramatic stock
price declines. The Fund avoided the difficulties in networking, having
sold any remaining investments in January, and only returned to this sector
in April with the purchase of Ascend Communications, a developer of network
access products in the US. At the time of purchase, the stock was down more
than 50% from its late 1996 high.
WIRELESS COMMUNICATIONS
Overall, the Fund benefited from the strategic decision to substantially
increase its exposure to the wireless communications sector in Continental
Europe. After a difficult 1995-96, demand for both handsets and
infrastructure is expanding rapidly, as digital networks are built across
the globe. Nokia in Finland, L.M. Ericsson Telefon in Sweden, and Filtronic
Comtek in the UK all produced excellent returns over the six-month period.
COMPUTING AND SEMICONDUCTORS
While networking stocks led the US technology market for much of 1996,
starting in September, market leadership came from the personal computer,
data storage, and component manufacturing sectors. These areas benefited
from firm underlying demand and an end to the inventory correction that
affected performance in the second and third quarters of 1996. In the US,
stocks such as Seagate Technology, EMC, Maxim Integrated Products, and
Applied Materials delivered outstanding returns; as did international
stocks such as ASM Lithography Holding in the Netherlands, Rohm and TDK in
Japan, and Siliconware Precision Industries in Taiwan. Indeed, the greater
stability shown by non-US technology stocks in the last six months reflects
in part the relative preponderance of component and storage-related
companies in the Asian technology universe. In the US, the Fund's heavy
exposure to component-related areas was maintained, as the underlying
fundamentals showed steady improvement.
- ----
16
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SELIGMAN HENDERSON
GLOBAL TECHNOLOGY FUND
SOFTWARE AND SERVICES
Outside the US, the Fund's considerable investment in the software and
services sectors was maintained. Demand in these areas remained very
strong, boosted by many companies' need to upgrade their applications
software to be "Year 2000 compliant." Earnings results from CMG in the
Netherlands; Logica and Admiral in the UK; Altran Technologies in France;
and CSK in Japan were outstanding and supported the Fund's continued
overweighting in the computer and business services area.
OUTLOOK
The technology market improved in April, following a period in which
sentiment deteriorated to extremely depressed levels, particularly in the
US market. Although it is likely that the technology sector will continue
to display volatility, especially around the quarterly reporting seasons,
the underlying fundamentals are healthy. Computer demand remains robust and
supports the steadily improving trends in the components market. We also
believe demand in the networking area should re-accelerate later in the
year, as the longer- term outlook for both wireline and wireless
communications infrastructure spending is very positive. Further, we
believe the millennium factor may accelerate spending in new applications
software and should ensure strong demand for information technology service
providers. Much of the volatility seen in recent quarters reflects a
gradual shift in the ownership of the technology group from opportunistic
momentum investors to more stable, value-conscious buyers. This promising
development, together with a solid fundamental outlook for the industry,
encourages us to be optimistic about the Fund's prospects.
----
17
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SELIGMAN HENDERSON
GLOBAL TECHNOLOGY FUND
LARGEST PORTFOLIO CHANGES
DURING THE SIX MONTHS ENDED APRIL 30, 1997
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 4/30/97
- ------------- -------- --------
Applied Materials (US) ......... 280,000 280,000
Ascend Communications (US) ..... 150,000 150,000
BMC Software (US) .............. 200,000 200,000
Burr-Brown (US) ................ 375,000 375,000
C-Cube Microsystems (US) ....... 200,000 350,000
Etec Systems (US) .............. 250,000 250,000
Quantum (US) ................... 250,000 250,000
Tecnomatix Technologies
(Israel) ..................... 350,000 350,000
Teradyne (US) .................. 400,000 400,000
Vanstar (US) ................... 500,000 500,000
SHARES
--------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/97
- ------------- -------- --------
America Online (US) ............ 400,000 --
Atmel (US) ..................... 300,000 --
Cisco Systems (US) ............. 300,000 --
Electrostar (US) ............... 625,000 --
Hadco (US) ..................... 400,000 150,000
Intel (US) ..................... 200,000 --
Microsoft (US) ................. 100,000 1 --
3Com (US) ...................... 180,000 --
U.S. Robotics (US) ............. 150,000 --
Xilinx (US) .................... 200,000 --
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 40,000 shares received as a result of a 2-for-1 stock split.
PERCENTAGE OF INVESTMENTS BY COUNTRY
AT APRIL 30, 1997
United States .......... 55.4%
United Kingdom ......... 14.1
Japan .................. 9.2
Netherlands ............ 3.3
Israel ................. 3.2
Taiwan ................. 2.4
Sweden ................. 2.0
France ................. 1.6
South Korea ............ 1.3
Singapore .............. 1.1
Germany ................ 0.9
Italy .................. 0.9
Luxembourg ............. 0.9
Bermuda ................ 0.9
Australia .............. 0.7
Finland ................ 0.7
Hong Kong .............. 0.7
India .................. 0.3
Spain .................. 0.3
Brazil ................. 0.1
- -----------------------------
Total 100.0%
LARGEST PORTFOLIO HOLDINGS
AT APRIL 30, 1997
SECURITY VALUE
- ----------- -----------
EMC (US) ................................ $19,096,875
Tencor Instruments (US) ................. 18,185,956
Veeco Instruments (US) .................. 17,256,250
Seagate Technology (US) ................. 16,056,250
Maxim Integrated Products (US) .......... 15,843,750
Applied Materials (US) .................. 15,347,500
Microchip Technology (US) ............... 15,264,844
Teradyne (US) ........................... 13,100,000
ECI Telecommunications (Israel) ......... 11,962,500
Komag (US) .............................. 11,926,563
- ----
18
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INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS 96.6%
AUTOMOTIVE AND RELATED 2.6%
MICHELIN (FRANCE)
Manufacturer of all-purpose tires 19,942 $1,115,548
PERUSAHAAN OTOMOBIL NASIONAL (MALAYSIA)
Manufacturer of automobiles 27,000 161,368
VOLKSWAGEN (GERMANY)
Manufacturer of economy and
luxury cars and trucks 1,877 1,191,781
---------
2,468,697
---------
BANKING 5.6%
BANCO BILBAO VIZCAYA (SPAIN)
Provider of banking services 14,678 989,562
CS HOLDINGS (SWITZERLAND)
Banking group 10,866 1,226,211
HSBC HOLDINGS (UK)
Provider of banking services 18,000 455,426
MALAYAN BANKING (MALAYSIA)
Provider of banking services 29,600 294,844
ROYAL BANK OF SCOTLAND (UK)
Provider of banking services 102,000 968,988
SUMITOMO TRUST AND BANKING (JAPAN)
Trust bank 68,000 562,337
UTD OVERSEAS BANK (SINGAPORE)
Comprehensive banking
operation with substantial
interests in Malaysia 39,660 372,832
WESTPAC BANKING (AUSTRALIA)
Provider of banking services 61,400 331,082
---------
5,201,282
---------
BUILDING MATERIALS 1.5%
CARADON (UK)
Supplier of building products 200,000 807,774
GUJURAT AMBUJA CEMENT (GDRS)
(INDIA)
Cement producer 67,200 638,400
---------
1,446,174
---------
BUSINESS SERVICES 2.2%
CSK (JAPAN)
Information services company 43,200 1,027,518
RENTOKIL (UK)
Provider of commercial
services such as pest control
and office maintenance 160,400 1,054,524
---------
2,082,042
---------
CHEMICALS 3.4%
AKZO NOBEL (NETHERLANDS)
Manufacturer of diversified
chemicals 7,456 961,966
BAYER (GERMANY)
Producer of specialty chemicals,
pharmaceuticals, and plastics 29,601 1,179,042
SKW TROSTBERG (GERMANY)
Conglomerate involved in
construction materials, chemicals,
and agrochemicals 23,971 734,669
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 83,000 300,701
---------
3,176,378
---------
CONSTRUCTION AND
PROPERTY 4.1%
DBS LAND (SINGAPORE)
Property developer 94,000 304,085
EMPRESAS ICA SOCIEDAD CONTROLADORA
(ADRS) (MEXICO)
Construction company 47,000 699,125
HONGKONG LAND HOLDINGS* (HONG KONG)
Commercial property developer 94,000 195,520
IRSA INVERSIONES Y REPRESENTACIONES
(GDRS) (ARGENTINA)
Real estate developer 19,000 662,625
LEND LEASE (AUSTRALIA)
Construction company 18,900 361,931
SUN HUNG KAI PROPERTIES (HONG KONG)
Property developer 39,000 422,895
SWIRE PACIFIC (HONG KONG)
Conglomerate with major
interests in property development
and aviation 54,000 416,505
UNITED ENGINEERS (MALAYSIA)
Construction, principally
managing expressways 48,000 340,426
WHARF HOLDINGS (HONG KONG)
Real estate investment manager 51,000 192,898
WING TAI HOLDINGS (SINGAPORE)
Real estate investment manager 83,000 214,571
---------
3,810,581
---------
CONSUMER PRODUCTS 1.4%
ELECTROLUX (SERIES B) (SWEDEN)
Manufacturer of appliances and
outdoor and industrial products 11,293 648,609
KAO (JAPAN)
Manufacturer of cosmetics and
personal care products 53,000 617,784
---------
1,266,393
---------
ELECTRONICS 7.2%
ALPS ELECTRIC (JAPAN)
Manufacturer of
electrical equipment 44,000 512,877
PHILIPS ELECTRONICS (NETHERLANDS)
Consumer and
industrial electronics 22,412 1,171,606
PIONEER ELECTRONIC+ (JAPAN)
Manufacturer of audio equipment,
including laser disks 108,000 1,930,850
- -----------
See footnotes on page 41.
----
19
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
ELECTRONICS (CONTINUED)
SAMSUNG ELECTRONICS+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 5,115 $ 409,710
SGS-THOMSON MICROELECTRONICS* (FRANCE)
Manufacturer of semiconductor
integrated circuits 9,726 750,785
TOSHIBA (JAPAN)
Diversified manufacturer of
consumer and industrial electronics 355,000 1,990,706
---------
6,766,534
---------
FINANCIAL SERVICES 2.3%
BHW HOLDING* (GERMANY)
Provider of mortgage banking
services 35,088 591,462
CREDIT COMMUNAL HOLDING/DEXIA*
(BELGIUM)
Special-purpose banking 9,305 925,546
NOMURA SECURITIES (JAPAN)
Securities firm 53,000 592,738
---------
2,109,746
---------
HEALTH AND HOUSEHOLD 5.3%
BRITISH BIOTECH (UK)
Biotechnology company 215,000 843,896
EGIS (HUNGARY)
Manufacturer of pharmaceutical
products 7,000 435,495
NOVARTIS (SWITZERLAND)
Manufacturer of pharmaceuticals 947 1,250,220
NOVO NORDISK (CLASS B) (DENMARK)
Producer and supplier of insulin
and industrial enzymes 5,613 555,992
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 18,374 529,997
PLIVA (GDRS)* (CROATIA)
Manufacturer of pharmaceutical
products 22,000 331,650
ROCHE HOLDINGS (SWITZERLAND)
European pharmaceutical
company and chemicals producer 124 1,049,490
---------
4,996,740
---------
INDUSTRIAL GOODS AND
SERVICES 6.2%
ABB (SWITZERLAND)
Manufacturer of heavy equipment
for electric power generation and
distribution 888 1,077,553
CIE GENERALE DES EAUX (FRANCE)
Water purification and distribution;
energy production 9,234 1,287,802
CITIC PACIFIC (CHINA)
Holding company with interests in
Cathay Pacific Airlines and Dragon
Air; telecommunications; and
power stations 53,000 286,668
FKI BABCOCK (UK)
Electrical engineering company 270,000 798,672
HUTCHISON WHAMPOA (HONG KONG)
Holding company with interests
in finance, property investment,
ports, retail and manufacturing,
and telecommunications 48,000 356,285
MANNESMANN (GERMANY)
Plant and machinery construction;
automotive technology 3,127 1,231,777
ROLLS ROYCE (UK)
Aerospace; power generation,
transmission, and distribution
systems 202,000 796,153
---------
5,834,910
---------
INSURANCE 5.3%
AXA-UAP (FRANCE)
Provider of insurance and
financial services 20,062 1,235,829
ING GROEP (NETHERLANDS)
Worldwide underwriter of
reinsurance; provider of
financial and consumer credit 34,834 1,369,761
MITSUI MARINE & FIRE (JAPAN)
Provider of non-life insurance 191,000 1,086,099
ZURICH VERSICHERUNGS (SWITZERLAND)
Provider of insurance services 3,814 1,254,912
---------
4,946,601
---------
LEISURE AND HOTELS 2.8%
ACCOR (FRANCE)
Hotel operator and provider of
related services 5,473 785,814
GRANADA GROUP (UK)
Television group with additional
leisure interests, including hotels 83,000 1,200,609
SOL MELIA (SPAIN)
Hotel manager and
franchise company 19,235 660,254
---------
2,646,677
---------
MANUFACTURING 3.5%
DESC (ADRS) (MEXICO)
Diversified product manufacturer;
financial services provider 29,694 764,621
HOKKAI CAN (JAPAN)
Manufacturer of cans for
the food industry 60,000 283,532
SANKYO (JAPAN)
Manufacturer of pachinko game
equipment 28,900 666,905
TOKYO STEEL MANUFACTURING (JAPAN)
Producer of H beams 26,900 288,131
TSUBAKI NAKASHIMA (JAPAN)
Manufacturer of ball bearings 39,000 307,159
YAMAHA (JAPAN)
Manufacturer of musical instruments
and audio equipment 46,000 927,463
---------
3,237,811
---------
- ---------
See footnotes on page 41.
- ----
20
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
MEDIA 2.9%
ELSEVIER (NETHERLANDS)
Global printer and publisher of
professional trade journals and
magazines 75,863 $1,216,647
NEWS CORP. (AUSTRALIA)
Global printer and publisher of
professional trade journals
and magazines 80,946 373,312
WPP GROUP (UK)
Provider of worldwide marketing
services, including advertising,
public relations, and market research 275,000 1,128,568
---------
2,718,527
---------
METALS 7.1%
COMPANHIA VALE DO RIO DOCE (ADRS)
(BRAZIL)
Producer of iron ore and gold;
transport operator 23,500 596,592
HINDALCO INDUSTRIES (GDRS)+ (INDIA)
Producer of aluminum and
aluminum products 16,000 520,000
MITSUBISHI MATERIALS (JAPAN)
Non-ferrous smelter
and cement producer 400,000 1,493,266
SIDERCA (CLASS A) (ARGENTINA)
Manufacturer and producer
of steel 320,000 676,898
SUMITOMO METAL INDUSTRIES (JAPAN)
Blast furnace and steel producer 569,000 1,416,114
THYSSEN (GERMANY)
Manufacturer of steel products 3,138 685,921
USINOR SACILOR (FRANCE)
Producer of steel products 83,996 1,270,855
---------
6,659,646
---------
RESOURCES 5.8%
BRITISH PETROLEUM (UK)
Oil producer, refiner,
and distributor 95,000 1,093,177
BROKEN HILL PROPRIETARY (AUSTRALIA)
Resources company with interests
in steel, oil, and minerals 38,605 544,667
ELF AQUITAINE (FRANCE)
Oil and gas exploration;
manufacturer of chemical
compounds 12,566 1,220,063
ENI (ITALY)
Refiner and marketer of oil and gas 167,631 851,904
NIPPON OIL (JAPAN)
Oil distributor 71,000 334,394
PETROLEO BRASILEIRO (BRAZIL)
Oil and gas producer and distributor 40,800 865,070
TATNEFT (ADRS)*+ (RUSSIA)
Oil and gas explorer and producer 7,140 523,933
----------
5,433,208
----------
RESTAURANTS 0.3%
DENNY'S (JAPAN)
Restaurant operator 11,000 286,761
---------
RETAILING 7.8%
ADIDAS (GERMANY)
Manufacturer of sporting goods 7,427 770,917
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 12,400 349,626
AUTOBACS SEVEN (JAPAN)
Manufacturer and retailer of
automobile and truck parts 4,400 292,825
CARREFOUR SUPERMARCHE (FRANCE)
Supermarket operator in Europe,
the Americas, and Taiwan 2,028 1,267,696
CHINA EVERBRIGHT-IHD HOLDINGS* (CHINA)
Department store and
supermarket operator; property
investor and developer 306,000 306,134
DIXONS GROUP (UK)
Consumer electronics retailer 85,000 699,042
JOSHIN DENKI (JAPAN)
Budget electrical appliance retailer 29,000 244,388
KONINKLIJKE AHOLD (NETHERLANDS)
International retailing organization,
focusing on distributing and
selling food products 17,354 1,186,400
METRO (GERMANY)
Department store operator 6,222 607,340
TESCO (UK)
Supermarket chain 219,000 1,270,708
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer
of jewelry 15,800 322,297
----------
7,317,373
----------
TELECOMMUNICATIONS 9.3%
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Manufacturer of telecommunications
equipment 36,239 1,147,067
NIPPON TELEGRAPH & TELEPHONE (JAPAN)
Telecommunications company 231 1,628,298
PORTUGAL TELECOM (PORTUGAL)
Provider of telecommunications
services 9,300 344,100
SPT TELECOM (CZECH REPUBLIC)
Provider of telecommunications
services 3,100 327,899
- ---------
See footnotes on page 41.
----
21
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
TELECOMMUNICATIONS (CONTINUED)
STET SOCIETA' FINANZARIA TELEFONICA (ITALY)
Holding company for a number of
telecommunications businesses 369,018 $ 1,370,370
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 11,086 1,270,646
TELECEL-COMUNICACAOES PESSOAIS*
(PORTUGAL)
Cellular communications operator 2,800 241,382
TELECOMASIA* (THAILAND)
Integrated telephone
service provider 70,000 104,853
TELEFONICA DE ESPANA (SPAIN)
Provider of telecommunications
services 27,154 696,734
TELEFONICA DEL PERU (ADRS) (PERU)
Provider of telecommunications
services 43,500 1,044,000
TELEKOMMUNIKASI (INDONESIA)
Domestic telecommunications
monopoly 4,000 5,782
TELEKOMMUNIKASI (ADRS) (INDONESIA)
Domestic telecommunications
monopoly 13,000 370,500
VIDESH SANCHAR NIGAM (GDRS)*+ (INDIA)
Provider of international
communications services 10,500 204,750
---------
8,756,381
---------
TOBACCO 1.3%
B.A.T. INDUSTRIES (UK)
Manufacturer of tobacco products;
financial services company 143,000 1,210,897
---------
TRANSPORTATION 3.3%
EAST JAPAN RAILWAY (JAPAN)
Provider of railway services 234 1,011,782
LUFTHANSA (GERMANY)
Airline services worldwide;
operator of Penta hotels 84,350 1,179,427
MITSUI O.S.K. LINES (JAPAN)
Shipping company 527,000 933,882
---------
3,125,091
---------
UTILITIES 4.1%
IBERDROLA (SPAIN)
Provider of electric utility
services 92,528 1,057,320
NATIONAL POWER (UK)
Electric power generation 125,000 1,083,872
UNITED UTILITIES (UK)
Provider of water utility services 65,000 716,798
VEBA (GERMANY)
Provider of electric energy 19,219 998,570
----------
3,856,560
----------
MISCELLANEOUS 1.3%
SIME DARBY (MALAYSIA)
Owner and manager of plantations 70,000 216,153
TAIWAN AMERICAN FUND* (TAIWAN)
Closed-end fund investing
in Taiwan 25,500 496,995
TAIWAN REPUBLIC OF CHINA FUND
(TAIWAN)
Closed-end fund investing
in Taiwan 42,600 548,475
-----------
1,261,623
-----------
TOTAL INVESTMENTS 96.6%
(Cost $81,930,432) 90,616,633
OTHER ASSETS LESS LIABILITIES 3.4% 3,198,465
-----------
NET ASSETS 100.0% $93,815,098
===========
- --------
See footnotes on page 41.
- ----
22
<PAGE>
- --------------------------------------------------------------------------------
EMERGING MARKETS GROWTH FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS 89.2%
AUTOMOTIVE MANUFACTURING 2.8%
QINGLING MOTORS (CHINA)
Manufacturer of lightweight
trucks 2,900,000 $ 1,591,021
SANLUIS (MEXICO)
Manufacturer of automobile
components; mining owner
and operator 155,000 897,081
---------
2,488,102
---------
CONSTRUCTION AND PROPERTY 5.9%
BUFETE INDUSTRIAL (ADRS)* (MEXICO)
Provider of building and heavy
construction services 50,200 960,075
EMPRESAS ICA SOCIEDAD CONTROLADORA
(ADRS) (MEXICO)
Construction company 72,500 1,078,437
IJM (MALAYSIA)
Provider of construction
and property services 270,000 591,681
IRSA INVERSIONES Y REPRESENTACIONES
(GDRS) (ARGENTINA)
Real estate developer 23,000 802,125
SM PRIME HOLDINGS (PHILIPPINES)
Developer and operator of
retail properties 3,150,000 824,232
SUEZ CEMENT (GDRS)* (EGYPT)
Cement manufacturer 58,000 1,104,900
---------
5,361,450
---------
CONSUMER GOODS AND SERVICES 2.1%
AL-AHRAM BEVERAGES (GDRS)* (EGYPT)
Producer of beer and soft drinks 4,285 81,307
PANAMERICAN BEVERAGES (ADRS)
(MEXICO)
Producer of Coca-Cola and
other beverages 39,200 1,136,800
SAN MIGUEL (CLASS B) (PHILIPPINES)
Producer of beer and
other beverages 233,000 671,521
---------
1,889,628
---------
DIVERSIFIED 4.1%
CHINA EVERBRIGHT-IHD HOLDINGS* (CHINA)
Department store and supermarket
operator; property investor
and developer 1,370,000 1,370,601
DESC (ADRS) (MEXICO)
Diversified product manufacturer;
financial services provider 37,875 975,281
GUANGDONG INVESTMENTS (CHINA)
Diversified holding company
investing in China 940,000 879,740
RENONG (MALAYSIA)
Diversified operator involved in
engineering and construction,
financial services, and
telecommunications 330,000 452,307
---------
3,677,929
---------
DRUGS AND HEALTH CARE 3.5%
EGIS (HUNGARY)
Manufacturer of pharmaceutical
products 13,000 808,777
PLIVA (GDRS)* (CROATIA)
Manufacturer of pharmaceutical
products 74,000 1,115,550
RICHTER GEDEON (GDRS) (HUNGARY)
Manufacturer of pharmaceuticals,
cosmetics, and pesticides 16,300 1,230,650
---------
3,154,977
---------
ELECTRIC UTILITIES 7.6%
BSES (GDRS)*+ (INDIA)
Provider of electric utility
services 41,000 963,500
CEMIG (ADRS) (BRAZIL)
Provider of electric utility
services 18,300 832,804
CENTRAIS ELETRICAS DE SANTA
CATARINA (GDRS)* (BRAZIL)
Electricity distributor 6,200 878,850
ELECTRICITY GENERATING PUBLIC COMPANY
(THAILAND)
Provider of electric utility
services 150,000 401,991
ENERSIS (ADRS) (CHILE)
Provider of electric utility
services 22,500 708,750
HUANENG POWER INTERNATIONAL
(ADRS)* (CHINA)
Developer and manufacturer of
coal-fired power plants 38,000 921,500
KOREA ELECTRIC POWER (ADRS)
(SOUTH KOREA)
Provider of electric utility
services 34,000 578,000
LUZ DEL SUR (ADRS)+ (PERU)
Electricity distributor 34,600 636,294
MOSENERGO (ADRS) (RUSSIA)
Producer and distributor of
electric and thermal energy 23,000 915,278
---------
6,836,967
---------
FINANCIAL SERVICES 13.1%
ALPHA CREDIT BANK (GREECE)
Provider of banking services 2,400 170,755
BANCO SANTANDER CHILE (ADRS) (CHILE)
Provider of banking services 65,200 1,043,200
BANK INTERNASIONAL (INDONESIA)
Provider of banking services 1,663,335 1,189,319
BANK INTERNASIONAL (WARRANTS)*
(INDONESIA)
Provider of banking services 125,630 40,713
CHO HUNG BANK (GDRS) (SOUTH KOREA)
Provider of commercial, retail, and
international banking services 65,000 387,400
COMMERCIAL INTERNATIONAL BANK+ (EGYPT)
Provider of banking services 54,000 1,211,220
GRUPO FINANCIERO BANAMEX ACCIVAL
(CLASS B) (MEXICO)
Provider of banking services 496,000 1,058,400
- -------
See footnotes on page 41.
----
23
<PAGE>
- --------------------------------------------------------------------------------
EMERGING MARKETS GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
FINANCIAL SERVICES (CONTINUED)
KOREA EXCHANGE BANK (SOUTH KOREA)
Provider of banking services 47,000 $ 303,498
LIBERTY LIFE ASSOCIATION OF AFRICA
(SOUTH AFRICA)
Provider of life and health
insurance 43,000 1,201,158
MALAYAN BANKING (MALAYSIA)
Provider of banking services 81,000 806,837
METROPOLITAN BANK & TRUST (PHILIPPINES)
Provider of banking services 25,809 528,512
RASHID HUSSAIN (MALAYSIA)
Financial and investment banking
and brokerage services 110,000 731,931
SKB BANKA (GDRS)*+ (SLOVENIA)
Provider of commercial, savings,
and investment banking services 18,000 641,250
STATE BANK OF INDIA (GDRS)*+ (INDIA)
Provider of banking services 29,600 728,900
STATE BANK OF INDIA (GDRS)* (INDIA)
Provider of banking services 20,400 482,970
ZAGREBACKA BANKA (GDRS)*+ (CROATIA)
Provider of banking services 35,000 1,246,875
----------
11,772,938
----------
INDUSTRIAL GOODS
AND SERVICES 4.5%
ALFA (MEXICO)
Producer of steel, chemicals, and
food products 174,800 944,597
CITIC PACIFIC (CHINA)
Holding company with interests in
Cathay Pacific Airlines and
Dragon Air; telecommunications;
and power stations 147,000 795,097
SILICONWARE PRECISION INDUSTRIES
(GDRS) (TAIWAN)
Integrated circuitpackaging 80,000 1,573,600
SKODA PLZEN (CZECH REPUBLIC)
Manufacturer of engineering
equipment 3,600 115,167
UNITED ENGINEERS (MALAYSIA)
Construction, principally
managing expressways 88,000 624,114
----------
4,052,575
----------
LEISURE AND HOTELS 1.3%
GRUPO TELEVISA (GDRS)* (MEXICO)
Provider of television and other
media services 50,600 1,170,125
----------
MANUFACTURING 3.1%
FRASER & NEAVE HOLDINGS (MALAYSIA)
Manufacturer of glass bottles
and glass products 126,000 622,520
MANUFACTURING (CONTINUED)
MAHINDRA & MAHINDRA (GDRS) (INDIA)
Manufacturer of automobiles,
automobile components, and
farm equipment 71,000 887,500
MAILLIS (GREECE)
Producer of packaging and
packaging systems 23,400 230,840
SAMSUNG ELECTRONICS+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 10,320 826,629
SHANGHAI INDUSTRIAL HOLDINGS (CHINA)
Manufacturer of miscellaneous goods 44,000 247,644
---------
2,815,133
---------
METALS 7.6%
CHINA STEEL (GDRS) (TAIWAN)
Producer of steel and steel products 60,475 1,390,925
COMPANHIA VALE DO RIO DOCE (ADRS)
(BRAZIL)
Producer of iron ore and gold;
transport operator 43,900 1,114,485
HINDALCO INDUSTRIES (GDRS)+ (INDIA)
Producer of aluminum and
aluminum products 45,000 1,462,500
POHANG IRON & STEEL (ADRS)
(SOUTH KOREA)
Producer of steel and
steel products 24,000 579,000
SIDERCA (ARGENTINA)
Steel manufacturer and producer 410,000 867,276
SIDERURGICA NACIONAL (BRAZIL)
Manufacturer of steel products 24,000,000 846,581
USINAS SIDERURGICAS DE MINAS GERAIS
(ADRS)+ (BRAZIL)
Producer of steel and steel
products 51,600 606,465
---------
6,867,232
---------
RESOURCES 10.0%
ANGLO-AMERICAN CORPORATION OF SOUTH
AFRICA (SOUTH AFRICA)
Producer of a wide variety
of minerals 18,400 1,174,820
EXPLORATION & PRODUCTION (THAILAND)
Producer of natural gas 35,000 447,550
GAZPROM (ADRS)*+ (RUSSIA)
Producer of oil and gas 21,750 342,562
GENCOR (SOUTH AFRICA)
Holding company with interests in
gold, platinum, and coal mining 258,500 1,086,769
LUKOIL HOLDING (ADRS) (RUSSIA)
Prospector, extractor, and
transporter of oil and gas 11,000 625,127
MOL MAGYAR OLAJ-ES GAZIPARI
(GDRS)*+ (HUNGARY)
Oil and gas producer and distributor 45,000 821,250
PEREZ (ADRS) (ARGENTINA)
Producer of oil and gas, and
provider of energy services 88,600 1,426,806
- --------
See footnotes on page 41.
- ----
24
<PAGE>
- --------------------------------------------------------------------------------
EMERGING MARKETS GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
RESOURCES (CONTINUED)
PETROLEO BRASILEIRO (BRAZIL)
Oil and gas producer
and distributor 7,400,000 $ 1,555,733
TATNEFT (ADRS)*+ (RUSSIA)
Oil and gas explorer and producer 20,400 1,496,952
---------
8,977,569
---------
RETAILING 5.2%
JERONIMO MARTINS (PORTUGAL)
Retailer of food and
consumer products 9,333 558,959
LOJAS ARAPUA (BRAZIL)
Specialist electrical
appliance retailers 49,235,300 1,014,254
MATAHARI PUTRA PRIMA (INDONESIA)
Retailer of consumer products 816,000 1,137,531
METRO CASH & CARRY (SOUTH AFRICA)
Retailer of food and
consumer products 1,280,000 1,237,410
MIGROS TURK (TURKEY)
Retailer of food and
consumer products 725,000 735,267
---------
4,683,421
---------
TELECOMMUNICATIONS 12.3%
NIZHNY NOVGOROD TELEPHONE (RDCS)*+
(RUSSIA)
Telephone utility 13 1,365,000
PHILIPPINE LONG DISTANCE TELEPHONE
(PHILIPPINES)
Telephone utility 15,000 856,087
PORTUGAL TELECOM (PORTUGAL)
Provider of telecommunications
services 6,000 221,307
PORTUGAL TELECOM (ADRS) (PORTUGAL)
Provider of telecommunications
services 18,000 666,000
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 29,300 3,358,284
TELECEL-COMUNICACAOES PESSOAIS*
(PORTUGAL)
Cellular communications operator 10,550 909,493
TELECOMASIA* (THAILAND)
Integrated telephone
service provider 500,000 748,947
TELECOM DO RIO DE JANEIRO (BRAZIL)
Telephone utility 5,200,000 865,281
TELEFONICA DEL PERU (ADRS) (PERU)
Provider of telecommunications
services 46,300 1,111,200
VIDESH SANCHAR NIGAM (GDRS)* (INDIA)
Provider of international
telecommunications services 51,000 994,500
-----------
11,096,099
-----------
MISCELLANEOUS 6.1%
FORMOSA FUND* (TAIWAN)
Closed-end fund investing in Taiwan 90 1,079,010
TAIPEI FUND* (TAIWAN)
Closed-end fund investing in Taiwan 90 1,069,020
TAIWAN OPPORTUNITIES FUND* (TAIWAN)
Closed-end fund investing in Taiwan 140,000 2,230,200
TAIWAN REPUBLIC OF CHINA FUND (TAIWAN)
Closed-end fund investing in Taiwan 87,000 1,120,125
-----------
5,498,355
-----------
TOTAL INVESTMENTS 89.2%
(Cost $70,353,482) 80,342,500
OTHER ASSETS LESS LIABILITIES 10.8% 9,683,120
-----------
NET ASSETS 100.0% $90,025,620
===========
- --------
See footnotes on page 41.
----
25
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS 95.1%
AEROSPACE 1.4%
BOEING (US)
Aerospace manufacturer 6,900 $ 680,512
ROLLS ROYCE (UK)
Aerospace; power
generation, transmission, and
distribution systems 450,000 1,773,609
----------
2,454,121
----------
AUTOMOTIVE AND RELATED 4.8%
AUTOLIV (ADRS) (SWEDEN)
Manufacturer and worldwide retailer
of automobile airbags and other
safety equipment 54,950 2,002,326
PACIFIC BBA (AUSTRALIA)
Manufacturer of industrial
products, mainly automobile
components 296,100 1,097,543
PORSCHE* (GERMANY)
Manufacturer of luxury sportscars 2,480 3,140,693
VALEO (FRANCE)
Manufacturer of automobile
components 38,460 2,375,092
----------
8,615,654
----------
BUSINESS GOODS AND SERVICES 6.4%
DAITEC (JAPAN)
Developer of point-of-sale systems
for Nippon Oil Company 24,900 804,048
FIRST DATA (US)
Information processing 40,400 1,393,800
HFS* (US)
Global service provider in the
hotel industry 25,000 1,481,250
INTERPUBLIC GROUP OF COMPANIES (US)
Global advertising through
agencies in various countries 36,900 2,089,463
SNYDER COMMUNICATIONS* (US)
Provider of marketing services 50,000 1,037,500
TOMRA SYSTEMS (NORWAY)
Provider of recycling systems,
mainly for beverage cans 135,000 2,620,069
WPP GROUP (UK)
Provider of worldwide marketing
services, including advertising,
public relations, and market
research 500,000 2,051,941
----------
11,478,071
----------
COMPUTER AND
TECHNOLOGY RELATED 8.0%
ADAPTEC* (US)
Manufacturer of computer
input-output systems 20,000 741,250
INTEL (US)
Microprocessors and FLASH
memory circuits 10,000 1,531,250
K. R. PRECISION PUBLIC COMPANY
(THAILAND)
Manufacturer and distributor of
computer parts and tools 150,000 999,234
MEITEC (JAPAN)
Provider of software
engineering services 75,000 1,500,354
MICROSOFT* (US)
Producer of microcomputer software 33,800 4,108,813
PARITY (UK)
Software and consultancy 300,000 2,389,191
STERLING COMMERCE* (US)
Developer of electronic data
interchange software 41,248 1,067,292
STERLING SOFTWARE* (US)
Computer software; management
of data processing software 25,900 789,950
XILINX* (US)
Field programmable gate arrays 25,000 1,223,438
----------
14,350,772
----------
CONSUMER GOODS
AND SERVICES 8.6%
ADIDAS (GERMANY)
Manufacturer of sporting goods 27,080 2,810,883
APCOA PARKING (GERMANY)
Operator of parking garages
throughout Europe 11,000 1,078,182
GUANGNAN HOLDINGS (HONG KONG)
Distributor of live and fresh
food products 1,080,000 1,554,488
GUANGNAN HOLDINGS (WARRANTS)*
(HONG KONG)
Distributor of live and fresh
food products 178,571 99,698
GUCCI GROUP (NETHERLANDS)
Manufacturer and marketer
of apparel 14,650 1,016,344
LIZ CLAIBORNE (US)
Designer and distributor of
women's apparel 15,100 683,275
PROCTER & GAMBLE (US)
Manufacturer of household products 17,800 2,238,350
PUMA (GERMANY)
Manufacturer and marketer of footwear
and other sporting goods 21,340 726,841
RAISION TEHTAAT (FINLAND)
Processor and marketer of
agricultural products 24,000 1,991,835
SERM SUK (THAILAND)
Manufacturer and distributor of
Pepsi-Cola drinks under franchise 96,700 1,925,115
WANT WANT HOLDINGS* (SINGAPORE)
Manufacturer of rice crackers 418,000 1,396,120
----------
15,521,131
----------
DISTRIBUTORS 0.6%
RYOYO ELECTRO (JAPAN)
Distributor of electronic goods 70,000 1,119,162
----------
- --------
See footnotes on page 41.
- ----
26
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
DIVERSIFIED 3.2%
BODYCOTE INTERNATIONAL (UK)
Diversified manufacturer
and distributor 100,000 $1,178,342
CITIC PACIFIC (CHINA)
Holding company with interests
in Cathay Pacific Airlines and
Dragon Air; telecommunications;
and power stations 232,000 1,254,848
DESC (ADRS) (MEXICO)
Diversified product manufacturer;
financial services provider 108,474 2,793,205
REPUBLIC INDUSTRIES* (US)
Provider of pollution
control services 25,000 620,313
----------
5,846,708
----------
DRUGS AND HEALTH CARE 8.6%
AMGEN* (US)
Biotechnology company 21,000 1,235,063
BIOGEN* (US)
Developer of genetically
engineered drugs 23,000 738,875
BOSTON SCIENTIFIC* (US)
Developer, producer, and
marketer of medical devices 40,000 1,930,000
BRITISH BIOTECH (UK)
Biotechnology company 300,000 1,177,530
CENTOCOR* (US)
Developer of human health care
products for cancer and
cardiovascular diseases 38,000 1,071,125
COLUMBIA/HCA HEALTHCARE (US)
Provider of medical services in
several specialty hospitals 48,500 1,697,500
HOGY MEDICAL (JAPAN)
Producer of disposable
surgical gowns and medical supplies 34,600 1,188,123
PFIZER (US)
Ethical drugs; hospital products;
and specialty chemicals 22,200 2,131,200
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 37,380 1,078,223
RICHTER GEDEON (HUNGARY)
Manufacturer of pharmaceuticals,
cosmetics, and pesticides 32,000 2,416,000
UNITED HEALTHCARE (US)
Owner and manager of HMO and
specialty managed care centers 18,700 909,288
----------
15,572,927
----------
ELECTRIC AND GAS UTILITIES 1.3%
GAZPROM (ADRS)*+ (RUSSIA)
Producer of oil and gas 82,200 1,294,650
HUANENG POWER INTERNATIONAL* (CHINA)
Developer and manufacturer of
coal-fired power plants 45,000 1,091,250
----------
2,385,900
----------
ELECTRONICS 6.3%
KEYENCE (JAPAN)
Manufacturer of detection devices
and measuring control equipment 13,200 1,611,404
KYOCERA (JAPAN)
Supplier of semiconductor packaging,
capacitors, and cellular components 23,000 1,376,703
NIHON DEMPA KOGYO (JAPAN)
Manufacturer of quartz electronic
parts in Malaysia and China 65,000 890,762
PHILIPS ELECTRONICS (NETHERLANDS)
Consumer and industrial electronics 37,900 1,981,254
SAMSUNG ELECTRONICS (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 23,270 1,050,059
SAMSUNG ELECTRONICS+
(SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 4,700 376,469
SGS-THOMSON MICROELECTRONICS* (FRANCE)
Manufacturer of semiconductor
integrated circuits 51,770 3,996,312
----------
11,282,963
----------
ENTERTAINMENT AND LEISURE 10.6%
ACCOR (FRANCE)
Hotel operator and provider
of related services 11,233 1,612,835
CAPITAL RADIO (UK)
Radio broadcasting company 150,000 1,310,398
CROWN* (AUSTRALIA)
Casino operator 583,333 1,015,105
DISNEY, WALT (US)
Theme parks and hotel operator;
film production 25,000 2,050,000
GRANADA GROUP (UK)
Television group with additional
leisure interests including hotels 128,800 1,863,114
HIS (Japan)
Travel agency specializing in
overseas and package tours 35,000 1,474,758
LADBROKE GROUP (UK)
Leisure group with interests
in hotels and gaming 500,000 1,881,285
- --------
See footnotes on page 41.
----
27
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
ENTERTAINMENT AND LEISURE (CONTINUED)
MGM GRAND* (US)
Owner and operator of resort
and casino hotels 45,000 $ 1,518,750
ORIENTAL LAND (JAPAN)
Operator of Tokyo Disneyland 17,000 1,008,191
SOL MELIA* (SPAIN)
Hotel manager and
franchise company 77,226 2,650,833
SUN INTERNATIONAL HOTELS* (US)
Operator of resort and
casino hotels 42,000 1,275,750
TELEVISION BROADCASTING (HONG KONG)
Television broadcasting,
production, and licensing group 378,000 1,551,700
----------
19,212,719
----------
FINANCIAL SERVICES 7.4%
AMERICAN INTERNATIONAL GROUP (US)
Commercial and industrial insurer 16,500 2,120,250
DONALDSON, LUFKIN & JENRETTE (US)
Integrated investment and
merchant banker and broker 12,000 517,500
MALAYSIA ASSURANCE (MALAYSIA)
Provider of life and
general insurance 217,000 1,167,224
MANHATTAN CARD (HONG KONG)
Operator of credit card business 1,664,000 515,529
MBNA (US)
Issuer of credit cards; deposit,
loan, and transaction processing 90,150 2,974,950
MEDIOLANUM* (ITALY)
Life insurer; provider of a wide
range of financial services 124,000 1,189,275
NOMURA SECURITIES (JAPAN)
Securities firm 125,000 1,397,968
SANYO SHINPAN FINANCE (JAPAN)
Consumer finance company 31,900 1,565,228
STATE BANK OF INDIA (GDRS)*+ (INDIA)
Provider of banking services 73,800 1,817,325
----------
13,265,249
----------
INDUSTRIAL GOODS AND
SERVICES 3.1%
ABB (SWITZERLAND)
Manufacturer of heavy
equipment for electric power
generation and distribution 1,626 1,973,086
EMPRESAS ICA SOCIEDAD CONTROLADORA
(ADRS) (MEXICO)
Construction company 134,000 1,993,250
OUTOKUMPU (FINLAND)
Manufacturer of diversified
metal products 83,500 1,591,793
---------
5,558,129
---------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT 1.5%
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 175,100 1,373,550
KALMAR INDUSTRIES (SWEDEN)
Manufacturer of forklifts and
special lift trucks 83,600 1,387,109
---------
2,760,659
---------
MEDICAL PRODUCTS AND
TECHNOLOGY 0.9%
ESSILOR INTERNATIONAL (FRANCE)
Optical supplies manufacturer 5,890 1,624,688
---------
PUBLISHING 1.3%
ELSEVIER (NETHERLANDS)
Global printer and publisher
of professional trade journals
and magazines 144,615 2,319,251
---------
RESOURCES 2.2%
GENCOR (SOUTH AFRICA)
Holding company with interests in
gold, platinum, and coal mining 367,000 1,542,918
MOL MAGYAR OLAJ-ES GAZIPARI (GDRS)*+
(HUNGARY)
Oil and gas producer
and distributor 110,000 1,969,000
TATNEFT (ADRS)*+(RUSSIA)
Oil and gas explorer and producer 5,500 400,608
---------
3,912,526
---------
RESTAURANTS 2.0%
KFC HOLDINGS (MALAYSIA)
Fast food restaurants 220,000 902,861
PIZZA EXPRESS (UK)
Operator of restaurant chain 245,000 2,741,596
---------
3,644,457
---------
RETAIL TRADE 3.1%
ADOLFO DOMINGUEZ* (SPAIN)
Clothing manufacturer and retailer 1,500 51,386
DIXONS GROUP (UK)
Consumer electronics retailer 130,000 1,069,122
METRO (GERMANY)
Department store operator 18,500 1,805,817
SHIMACHU (JAPAN)
Furniture retailer 70,000 1,681,500
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer of jewelry 49,500 1,009,727
---------
5,617,552
---------
SUPPORT SERVICES 2.5%
CRT GROUP (UK)
Provider of training and
recruitment services; publisher
of multimedia products 350,000 1,308,367
- -------
See footnotes on page 41.
- ----
28
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL GROWTH OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
SUPPORT SERVICES (CONTINUED)
RENTOKIL (UK)
Provider of commercial
services such as pest control
and office maintenance 265,000 $ 1,742,200
SECOM (JAPAN)
Security services pioneer 26,000 1,546,034
-----------
4,596,601
-----------
TELECOMMUNICATIONS 7.6%
DDI (JAPAN)
Long distance and mobile
telecommunications services 240 1,593,447
L.M. ERICSSON TELEFON (SERIES B) (SWEDEN)
Manufacturer of telecommunications
equipment 97,950 3,100,396
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 38,000 4,355,454
TELECEL-COMUNICACAOES PESSOAIS* (PORTUGAL)
Cellular communications operator 1,850 159,484
TELEFONICA DEL PERU (ADRS) (PERU)
Provider of telecommunications
services 70,000 1,680,000
VIDESH SANCHAR NIGAM (GDRS)* (INDIA)
Provider of international
telecommunications services 45,400 885,300
WORLDCOM* (US)
Provider of interstate long distance
telecommunications services 81,200 1,943,725
-----------
13,717,806
-----------
TOBACCO 1.6%
TABACALERA (SPAIN)
Manufacturer and marketer of
tobacco products 57,550 2,894,159
-----------
TRANSPORTATION 2.1%
KONINKLIJKE VAN OMMEREN (NETHERLANDS)
Provider of logistic services to
marine transport industry 39,715 1,549,445
LUFTHANSA (GERMANY)
Airline services worldwide;
operator of Penta hotels 164,000 2,293,135
-----------
3,842,580
-----------
TOTAL INVESTMENTS 95.1%
(Cost $149,031,570) 171,593,785
OTHER ASSETS LESS LIABILITIES 4.9% 8,786,619
-----------
NET ASSETS 100.0% $180,380,404
===========
- --------
See footnotes on page 41.
----
29
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS 95.0%
ADVERTISING 1.4%
ASATSU (JAPAN)
Advertising agency 118,100 $ 3,348,508
UNIVERSAL OUTDOOR HOLDINGS* (US)
Outdoor advertising
such as billboards 352,000 9,416,000
-----------
12,764,508
-----------
AUTOMOTIVE PARTS
MANUFACTURING 3.1%
ECIA (FRANCE)
Manufacturer of automobile
components 41,467 6,530,012
FUTURIS (AUSTRALIA)
Mini-conglomerate with interests
in automobile components,
building materials, and
financial services 2,299,822 3,463,706
KOITO MANUFACTURING (JAPAN)
Manufacturer of automobile
lighting equipment 102,000 618,571
MONTUPET (FRANCE)
Manufacturer of automobile
components 23,430 2,632,584
NIPPON SEIKI (JAPAN)
Manufacturer of automobile
components 168,700 1,527,959
NOKIAN TYRES* (FINLAND)
Manufacturer of tires 256,340 6,170,088
QINGLING MOTORS (CHINA)
Manufacturer of
lightweight trucks 1,500,000 822,942
SYLEA (FRANCE)
Manufacturer of automobile
components 73,523 6,293,503
-----------
28,059,365
-----------
BUILDING MATERIALS 1.9%
APOGEE ENTERPRISES (US)
Manufacturer and distributor of
energy-efficient aluminum
window systems 230,000 3,435,625
DANTO (JAPAN)
Manufacturer of wall and
floor tiles 282,000 2,665,197
GUJURAT AMBUJA CEMENT (GDRS) (INDIA)
Cement producer 260,000 2,470,000
MALAYAN CEMENT (MALAYSIA)
Cement producer 886,750 1,469,790
POLYPIPE (UK)
Manufacturer of plastic piping
and molded plastic products 1,525,000 5,985,777
TIPCO ASPHALT (THAILAND)
Manufacturer and distributor of
asphalt emulsion 250,000 1,263,400
-----------
17,289,789
-----------
BUSINESS SERVICES 5.5%
ACCUSTAFF* (US)
Provider of temporary
personnel services 350,000 6,387,500
BA MERCHANT SERVICES (CLASS A)* (US)
Provider of payment
processing services 200,000 2,800,000
CERIDIAN* (US)
Provider of data processing
services 225,000 7,509,375
FACTSET RESEARCH SYSTEMS* (US)
Provider of on-line database
services to the financial
community 500,000 10,125,000
FUJITSU BUSINESS SYSTEMS (JAPAN)
Distributor of computer equipment 147,000 2,963,850
IBC GROUP (UK)
Business communications 987,400 5,881,670
ISA INTERNATIONAL (UK)
Distributor of computer
consumables 1,299,003 4,972,040
SITEL* (US)
Telemarketer 239,500 2,365,063
SKILLED ENGINEERING (AUSTRALIA)
Provider of personnel placement
and outsourcing services 995,000 1,979,943
SOURCE SERVICES* (US)
Specialty staffing services 200,000 3,325,000
YOKOHAMA REITO (JAPAN)
Cold storage, freezing, and
loading services 103,000 1,062,692
-----------
49,372,133
-----------
CAPITAL GOODS 4.9%
BOBST (SWITZERLAND)
Manufacturer of machinery for the
paper and packaging industries 2,912 4,248,234
BT INDUSTRIES (SWEDEN)
Manufacturer of forklifts 250,960 4,644,442
FUSION SYSTEMS* (US)
Manufacturer of ultraviolet
curing systems 70,000 1,859,375
IRO (SWEDEN)
Manufacturer of textile machinery 274,630 2,944,342
KALMAR INDUSTRIES (SWEDEN)
Manufacturing of forklifts and
special lift trucks 214,750 3,563,178
KCI KONECRANES INTERNATIONAL (FINLAND)
Manufacturer of cranes and other
heavy-duty lifting equipment 150,000 5,776,785
KOMORI (JAPAN)
Manufacturer of offset
printing machines 196,000 4,183,350
NAMURA SHIPBUILDING (JAPAN)
Shipbuilder 229,000 649,287
RAUMA (FINLAND)
Manufacturer of forestry-related
machinery 435,750 8,978,135
VALMET (FINLAND)
Manufacturer of paper and
pulp machinery 408,510 6,914,432
-----------
43,761,560
-----------
- -------
See footnotes on page 41.
- ----
30
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
CHEMICALS 1.4%
CHEMICAL COMPANY OF MALAYSIA (MALAYSIA)
Producer of industrial chemicals
and pharmaceuticals 439,000 $ 1,364,332
CHEMICAL COMPANY OF MALAYSIA
(WARRANTS)* (MALAYSIA)
Producer of industrial chemicals
and pharmaceuticals 53,250 55,588
OM GROUP (US)
Producer of specialty chemicals 200,000 5,575,000
TOSHIBA CHEMICAL (JAPAN)
Producer of synthetic resin molded
products and insulating materials 14,000 60,755
TOYO INK MANUFACTURING (JAPAN)
Ink manufacturer 854,000 3,093,959
VALLEY NATIONAL GASES* (US)
Packager and distributor of gases 300,000 2,568,750
-----------
12,718,384
-----------
COMPUTER SOFTWARE 2.7%
ACXIOM* (US)
Provider of data processing
services 200,000 2,650,000
BLACK BOX* (US)
Provider of communications and
networking solutions 100,000 2,381,250
DIAMOND COMPUTER SERVICE (JAPAN)
Provider of data processing and
software development services 6,000 77,026
F.I. GROUP (UK)
Designer and builder of
software applications 527,200 4,297,144
HITACHI INFORMATION SYSTEMS (JAPAN)
Leading data processing firm 155,000 1,477,121
INFORMATICS HOLDINGS (SINGAPORE)
Operator of computer
training schools 1,385,000 689,293
JAPAN INFORMATION PROCESSING
SERVICE (JAPAN)
Computer software developer 20,750 228,794
MARCAM* (US)
Supplier of business planning
applications and services 270,000 3,172,500
MENTOR GRAPHICS* (US)
Electronic design automation
software 200,000 1,418,750
PARITY (UK)
Software and consultancy 1,040,800 8,288,900
-----------
24,680,778
-----------
CONSTRUCTION AND
PROPERTY 6.4%
ASHTEAD GROUP (UK)
Rentor of equipment for
the construction industry 1,807,100 8,091,654
-----------
BAU HOLDINGS (AUSTRIA)
Construction and civil engineering 29,924 2,119,100
BAU HOLDINGS (VOTING PREFERENCE SHARES)
(AUSTRIA)
Construction and civil engineering 103,250 5,549,481
BUKIT SEMBAWANG ESTATES (SINGAPORE)
Property developer 64,000 1,318,311
DANSKE TRAELASTKOMPAGNI (DENMARK)
Timber supply company 81,791 7,641,986
HIGASHI NIHON HOUSE (JAPAN)
Home builder 290,000 2,855,005
KAMPA-HAUS (GERMANY)
Residential construction 70,200 2,638,640
MITSUI HOME (JAPAN)
Home builder 320,000 3,049,539
NEW ASIA REALTY (HONG KONG)
Holding company with interests
in property and real estate 579,000 2,137,635
NISHIO RENT ALL (JAPAN)
Rentor of construction equipment 114,000 1,292,904
PLETTAC (GERMANY)
Manufacturer of scaffolding,
lightweight construction sheds,
and related products 32,273 7,175,718
SIME UEP PROPERTIES (MALAYSIA)
Property company involved in both
investment and development 403,000 802,853
STO (GERMANY)
Producer and marketer of
building materials 912 326,976
THORKILD KRISTENSE (DENMARK)
Property development 69,313 5,001,888
TILBURY DOUGLAS (UK)
Small contractor 552,000 6,459,592
WING TAI HOLDINGS (SINGAPORE)
Real estate investment
holding company 440,000 1,137,485
-----------
57,598,767
-----------
CONSUMER GOODS AND
SERVICES 5.7%
AMERICAN DISPOSAL SERVICES* (US)
Provider of pollution
control equipment 175,000 2,821,875
BUDGET GROUP* (US)
Owner and operator of Budget
Rent-a-Car franchises 350,000 7,350,000
CANANDAIGUA WINE (CLASS A)* (US)
Wine, imported beer, and
distilled spirits 150,000 3,862,500
CHILDTIME LEARNING CENTERS* (US)
Provider of childcare services 225,000 2,165,625
EKORNES (NORWAY)
Manufacturer of home furnishings 1,568,000 11,687,504
- --------
See footnotes on page 41.
----
31
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
CONSUMER GOODS AND SERVICES (CONTINUED)
FUJICCO (JAPAN)
Food manufacturer 61,000 $ 682,208
GERRY WEBER INTERNATIONAL* (GERMANY)
Designer and manufacturer
of ladies' apparel 2,854 130,380
LA DORIA++ (ITALY)
Producer of food, specializing in
canned tomatoes, fruits
and fruit juices 2,252,166 5,979,610
SOLA INTERNATIONAL* (US)
Designer and manufacturer of
optical supplies 175,000 4,375,000
STEINWAY MUSICAL INSTRUMENTS* (US)
Manufacturer of musical equipment 200,000 3,425,000
TARKETT (GERMANY)
Manufacturer and distributor of
hardwood flooring 323,800 5,804,545
WANT WANT HOLDINGS* (SINGAPORE)
Manufacturer of rice crackers 797,000 2,661,980
-----------
50,946,227
-----------
DRUGS AND HEALTH CARE 6.8%
AMERICAN ONCOLOGY RESOURCES* (US)
Provider of management services
to oncology practices 200,000 1,787,500
AMERISOURCE HEALTH (CLASS A)* (US)
Wholesale distributor of
pharmaceuticals 215,000 9,594,375
CHIROSCIENCE GROUP (UK)
Pharmaceutical company specializing
in pharmaceuticals for cancer, pain,
and inflammatory disorders 110,000 596,241
COLLABORATIVE CLINICAL RESEARCH* (US)
Manager of clinical research network150,000 937,500
DARYA VARIA LAB (INDONESIA)
Manufacturer of generic
pharmaceuticals 775,560 949,503
HOGY MEDICAL (JAPAN)
Producer of disposable
surgical gowns and medical supplies 4,000 137,355
INTENSIVA HEALTHCARE* (US)
Provider of acute long-term care
for the critically ill 225,000 1,687,500
PARKWAY HOLDINGS (SINGAPORE)
Hospital manager 482,000 1,965,715
PEPTIDE THERAPEUTICS (UK)
Biopharmaceuticals development
company 135,000 695,547
SHIRE PHARMACEUTICALS* (UK)
Biotechnology company specializing
in metabolic bone and
Alzheimer's diseases 247,500 876,931
TAMRO (FINLAND)
Health care wholesaler for
Scandinavia and the Baltics 1,419,130 8,744,543
TOTAL RENAL CARE HOLDINGS* (US)
Provider of dialysis services 215,000 6,906,875
TOWA PHARMACEUTICAL (JAPAN)
Large generic drug wholesaler 118,000 1,254,627
TRIGON HEALTHCARE* (US)
Managed health care company 100,000 1,900,000
VANGUARD MEDICA GROUP (UK)
Emerging biopharmaceutical
company planning to develop and
commercialize new drugs 65,000 633,867
WATERS* (US)
Manufacturer of liquid
chromatography instruments 269,000 7,969,125
WATSON PHARMACEUTICALS* (US)
Manufacturer of off-patent
medications 410,000 14,657,500
-----------
61,294,704
-----------
ELECTRIC UTILITIES 3.2%
BEIJING DATANG POWER GENERATION*
(HONG KONG)
Generator and distributor of
electric power 2,200,000 1,143,082
CALENERGY* (US)
Developer of geothermal
energy power 400,000 15,650,000
CALPINE* (US)
Developer of power
generation facilities 500,000 8,125,000
CENTRAIS ELETRICAS DE SANTA CATARINA
(GDRS)* (BRAZIL)
Distributor of electricity 17,300 2,452,275
FIRST PHILIPPINE HOLDINGS (PHILIPPINES)
Generator and distributor of
electric power 148,750 259,480
OKINAWA ELECTRIC POWER (JAPAN)
Supplier of electricity to
Okinawa Island 76,600 1,303,111
-----------
28,932,948
-----------
ELECTRICAL DISTRIBUTION 0.8%
ABACUS POLAR (UK)
Distributor of electronic
components 717,500 2,478,075
REXEL (FRANCE)
European electrical distributor 6,900 1,840,552
TRIFAST (UK)
Manufacturer and distributor
of fasteners for the
electronics industry 369,000 3,061,651
-----------
7,380,278
-----------
- --------
See footnotes on page 41.
- ----
32
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
ELECTRONICS 5.2%
BERG ELECTRONICS* (US)
Manufacturer of electronic
connectors 250,000 $ 7,500,000
ELECTRO SCIENTIFIC INDUSTRIES* (US)
Manufacturer of memory
circuit repair systems 120,000 3,352,500
ENPLAS (JAPAN)
Manufacturer of electronic
components and engineering plastics 39,000 614,318
FAIREY GROUP (UK)
Electrical and electronic engineering454,100 3,834,163
FOSTER ELECTRIC (JAPAN)
Speaker manufacturer with
worldwide production 122,000 446,799
HANA MICROELECTRONICS (THAILAND)
Circuit board manufacturer 225,100 1,318,541
HANA MICROELECTRONICS (RFD LINE)
(THAILAND)
Circuit board manufacturer 62,900 339,544
HORIBA INSTRUMENTS (JAPAN)
Manufacturer of instruments
and analyzers 322,000 3,017,878
JOHNSON ELECTRIC HOLDINGS (HONG KONG)
Designer, manufacturer, and
marketer of micromotors 455,000 1,233,444
LOJACK* (US)
Manufacturer of stolen vehicle
tracking devices 500,000 4,968,750
MAXIM INTEGRATED PRODUCTS* (US)
Manufacturer of linear and
mixed-signal integrated circuits 175,000 9,242,188
OTRA (NETHERLANDS)
Holding company for various technical
product wholesale companies 472,803 7,533,935
RYOYO ELECTRO (JAPAN)
Distributor of electronic goods 191,000 3,053,714
-----------
46,455,774
-----------
FINANCIAL SERVICES 3.2%
BURE INVESTMENT AKTIEBOLAGET (SWEDEN)
Investment company 32,663 412,717
CENTRALE POUR L'INDUSTRIE (FRANCE)
Diversified holding company
with interests in financial
services and insurance 5,743 345,792
DAH SING FINANCIAL (HONG KONG)
Chinese-owned bank 489,800 2,035,933
FOKUS BANK (NORWAY)
Provider of banking services 552,100 5,396,379
FUJI FIRE AND MARINE INSURANCE (JAPAN)
Non-life insurance firm 1,083,000 3,582,421
ICHIYOSHI SECURITIES (JAPAN)
Kansai-based securities business 740,000 2,243,837
MUTUAL RISK MANAGEMENT (US)
Provider of risk management
services to insurance brokers 135,066 4,963,676
NEWCOURT CREDIT GROUP (CANADA)
Financial services company 120,000 2,212,437
NISSHIN FIRE & MARINE INSURANCE
(JAPAN)
Non-life insurance company 404,000 1,272,742
PHILIPPINE NATIONAL BANK (PHILIPPINES)
Commercial bank 19,425 127,437
SOUTHERN BANK (MALAYSIA)
Commercial bank 480,000 1,185,752
SOUTHERN BANK (RFD LINE) (MALAYSIA)
Commercial bank 33,000 81,520
UNIONAMERICA HOLDINGS (ADRS) (UK)
Provider of property and casualty
reinsurance 200,000 3,350,000
WING HANG BANK (HONG KONG)
Commercial bank 343,200 1,253,784
-----------
28,464,427
-----------
INDUSTRIAL GOODS
AND SERVICES 4.7%
AEA TECHNOLOGY (UK)
Provider of engineering and
research and development services 260,000 2,068,519
ALLIED WASTE INDUSTRIES (US)
Provider of integrated waste
disposal services 400,000 4,500,000
ANGPANNEFORENINGEN (CLASS B) (SWEDEN)
Engineering consultancy 162,750 2,949,649
ASSYSTEM (FRANCE)
Global industrial consultant for the
nuclear, steel, oil, automobile,
space, and transportation
industries 109,435 8,541,543
BACOU USA* (US)
Designer and manufacturer of
personal protective gear 200,000 3,012,500
DRILEX INTERNATIONAL (US)
Provider of precision drilling
products and services 150,000 2,109,375
DRUCK HOLDINGS (UK)
Worldwide engineering group 346,200 1,434,831
FINNING INTERNATIONAL (CANADA)
Lessor of construction equipment 80,000 1,787,133
FIRST AVIATION SERVICES* (US)
Service provider to
aircraft operators 200,000 1,687,500
KARDEX (SWITZERLAND)
Manufacturer and distributor
of industrial storage and
retrieval systems 1,839 550,075
- ---------
See footnotes on page 41.
----
33
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
INDUSTRIAL GOODS AND SERVICES (CONTINUED)
MEMTEC (ADRS) (AUSTRALIA)
Researcher, developer, and
producer of filtration and
separation products 410,000 $ 9,430,000
TECHNIP* (FRANCE)
Engineering contractors 33,390 3,534,030
VISUAL ACTION HOLDINGS (UK)
Rentor of cameras
and related equipment 94,100 256,176
-----------
41,861,331
-----------
LEISURE AND HOTELS 1.2%
ALLIED LEISURE (UK)
Bowling alley operator 4,525,000 2,794,703
GTECH HOLDINGS* (US)
Operator of state and local
lottery systems 100,000 3,075,000
MANDARIN ORIENTAL* (HONG KONG)
Operator and manager of
hotels in the Pacific 1,247,000 1,446,520
SUN INTERNATIONAL HOTELS* (US)
Operator of resort and
casino hotels 125,000 3,796,875
-----------
11,113,098
-----------
MANUFACTURING 11.4%
AMERICAN HOMESTAR* (US)
Retailer and producer of
manufactured homes 300,000 4,950,000
ASAHI DIAMOND INDUSTRIES (JAPAN)
Manufacturer of
diamond-tipped tools 400,670 3,143,005
BRITISH POLYTHENE INDUSTRIES (UK)
Manufacturer and converter
of polythene 270,000 2,834,848
COBHAM (UK)
High-integrity engineering 385,000 3,970,323
DAVID BROWN GROUP (UK)
Diversified engineering company;
manufacturer of transmission
equipment and pumps 1,312,332 4,276,531
DOMNICK HUNTER (UK)
Manufacturer of filtration,
purification, and separation
products 695,700 4,127,132
L'EUROPEENNE D'EXTINCTEURS++ (FRANCE)
Seller and distributor
of fire extinguishers 130,760 8,487,792
L'EUROPEENNE D'EXTINCTEURS (RIGHTS)*
(FRANCE)
Seller and distributor
of fire extinguishers 130,760 1,906,613
FINNVEDEN (SERIES B) (SWEDEN)
Industrial conglomerate 383,215 6,798,581
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 155,000 2,807,750
HOKKAI CAN (JAPAN)
Manufacturer of cans for
the food industry 402,000 1,899,661
HOKUSHIN (JAPAN)
Producer of fiber board 270,000 1,446,011
HUCKE (GERMANY)
Manufacturer of textiles
and clothing 248,530 7,042,138
INDUSTRIE NATUZZI (ADRS)+ (ITALY)
Manufacturer of leather furniture 66,480 1,479,180
KOMATSU SEIREN (JAPAN)
Printer of long-staple fabrics 224,000 1,690,100
MITSUBISHI CABLE INDUSTRIES (JAPAN)
Manufacturer of wire and
cable products 332,000 1,257,714
NICHICON (JAPAN)
Manufacturer of electrical
equipment 297,000 3,251,398
PLM (SWEDEN)
Manufacturer of food packaging 419,720 6,803,375
RISO KAGAKU (JAPAN)
Manufacturer of copying machines 1,000 59,069
SAMAS GROEP (NETHERLANDS)
Manufacturer of office furniture 157,480 6,079,184
SANKYO (JAPAN)
Manufacturer of pachinko
game equipment 185,000 4,269,119
SIG SCHWEIZERISCHE INDUSTRIE-GESELLSCHAFT*
(SWITZERLAND)
Industrial conglomerate 4,113 5,564,154
SODICK (JAPAN)
Manufacturer of electrodischargers 348,000 3,069,702
STOVES (UK)
Manufacturer of ovens 452,500 2,070,287
TOKYO STYLE (JAPAN)
Manufacturer of women's
ready-to-wear apparel 135,000 1,626,762
TSUBAKI NAKASHIMA (JAPAN)
Manufacturer of ball bearings 442,000 3,481,137
TSUDAKOMA (JAPAN)
Manufacturer of air-jet looms 648,000 2,378,263
VENTURE MANUFACTURING (SINGAPORE)
Contract manufacturer 278,000 787,862
WELLINGTON HOLDINGS (UK)
Producer of sealing systems
and rubber compounds 440,000 1,662,682
ZAG INDUSTRIES* (ISRAEL)
Designer, developer, and
manufacturer of plastic
consumer products 220,000 3,107,500
-----------
102,327,873
-----------
- -------
See footnotes on page 41.
- ----
34
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
MEDIA 3.3%
AAMULEHTI YHTYMAE (FINLAND)
Publisher 7,950 $ 274,022
CAPITAL RADIO (UK)
Commercial radio station 660,200 5,767,499
COX RADIO (CLASS A)* (US)
Operator of radio stations 350,000 7,087,500
GWR GROUP (UK)
Local radio operator 1,097,500 3,540,777
SOUTH CHINA MORNING POST
(HONG KONG)
English language newspaper 3,875,000 3,326,459
TOEI (JAPAN)
Producer of movies, particularly of
animated movies 313,000 1,740,395
TRINITY INTERNATIONAL HOLDINGS (UK)
Publisher of regional newspapers
in the UK, US, and Canada 827,600 6,147,099
UNITED VIDEO SATELLITE GROUP (CLASS A)*
(US)
Satellite-delivered program
services 102,500 1,614,375
-----------
29,498,126
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY 2.7%
ACUSON* (US)
Designer, producer, and retailer of
medical diagnostic ultrasound
imaging systems 125,000 3,031,250
CHIREX* (US)
Contract manufacturer in the
pharmaceutical industry 100,000 1,006,250
COMPDENT* (US)
Provider of managed care
dental services 200,000 3,212,500
HITACHI MEDICAL (JAPAN)
Manufacturer of medical
equipment 193,000 2,492,872
IMNET SYSTEMS* (US)
Electronic information and
document management systems 150,000 2,728,125
INSTRUMENTATION LABORATORIES (ADRS)*
(ITALY)
Developer, manufacturer,
and distributor of in vitro
diagnostics instruments 319,900 1,239,613
NCS HEALTHCARE (CLASS A)* (US)
Health care facility and
pharmacy services 320,000 7,320,000
SYBRON INTERNATIONAL* (US)
Manufacturer of laboratory
and dental supplies 86,000 2,859,500
-----------
23,890,110
-----------
METALS 0.9%
AMTEK ENGINEERING (SINGAPORE)
Manufacturer of precision
metal parts 615,000 1,062,764
-----------
IMS INTERNATIONAL METAL SERVICE (FRANCE)
Distributor and broker of specialized
metal products 11,043 1,687,849
NAKAYAMA STEEL WORKS (JAPAN)
Small blast furnace company,
mainly for the housing industry 709,000 2,563,054
SANYO SPECIAL STEEL (JAPAN)
Steel manufacturer 1,284,000 3,033,788
-----------
8,347,455
-----------
PAPER AND PRINTING 0.9%
MUNSKJO (SWEDEN)
Producer of specialty paper 387,800 3,588,449
NISSHA PRINTING (JAPAN)
Integrated printing firm 180,000 1,601,953
RENGO (JAPAN)
Manufacturer of paper board 514,000 2,542,270
ROTTNEROS (SWEDEN)
Manufacturer of pulp, wooden
boards, and other forest products 143,000 158,787
-----------
7,891,459
-----------
RESOURCES 1.1%
NITTETSU MINING (JAPAN)
Open cast coal miner 492,000 3,169,694
QNI (AUSTRALIA)
Producer of nickel and cobalt 1,272,000 2,362,400
SEOUL CITY GAS (SOUTH KOREA)
Distributor of natural gas 22,000 1,159,193
TARRAGON OIL & GAS* (CANADA)
Explorer, developer, and
producer of oil and gas 270,000 3,189,776
-----------
9,881,063
-----------
RESTAURANTS 1.9%
AIYA (JAPAN)
Operator of restaurant chain 142,000 1,621,643
KENTUCKY FRIED CHICKEN (JAPAN)
Fast food restaurants 187,000 2,253,367
KFC HOLDINGS (MALAYSIA)
Fast food restaurants 271,000 1,112,160
MOS FOOD SERVICES (JAPAN)
Fast food restaurants 58,000 785,697
PIZZA EXPRESS (UK)
Operator of restaurant chain 860,000 9,623,564
SAGAMI CHAIN (JAPAN)
Noodle restaurant chain 162,750 1,897,062
-----------
17,293,493
-----------
RETAILING 7.6%
AOYAMA TRADING (JAPAN)
Retailer of suits and clothing 148,000 4,172,954
CLINTON CARDS (UK)
Retailer of greeting cards 736,043 2,823,246
CORPORATE EXPRESS* (US)
Office products supplier 500,000 4,937,500
COURTS (SINGAPORE)
Retailer of household furniture 546,500 691,294
- --------
See footnotes on page 41.
----
35
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
RETAILING (CONTINUED)
DOMINICK'S SUPERMARKETS* (US)
Supermarket operator 150,000 $ 3,075,000
ELECTRONICS BOUTIQUE* (UK)
Electronic games retailer 7,099,981 3,202,239
FOTOLABO CLUB (SWITZERLAND)
Film processor 8,714 2,861,225
GAMES WORKSHOP GROUP (UK)
Manufacturer and retailer
of specialty fantasy games 280,000 2,962,597
GUANGNAN HOLDINGS (HONG KONG)
Distributor of live and
fresh food products 2,339,000 3,366,619
GUANGNAN HOLDINGS (WARRANTS)*
(HONG KONG)
Distributor of live and
fresh food products 501,285 279,872
HAMLEY'S (UK)
Toy store 269,700 1,389,549
HORNBACH BAUMARKT (GERMANY)
Large home improvement and
garden center retailer 118,090 3,755,826
JARDINE INTERNATIONAL MOTOR HOLDINGS
(HONG KONG)
Holding company for Jardine
Matheson Group, which sells
and services cars 1,919,000 2,229,494
JOSHIN DENKI (JAPAN)
Budget electrical appliance
retailer 196,000 1,651,729
LINENS 'N THINGS* (US)
Home textiles retailer 150,000 3,187,500
LOJAS ARAPUA (ADRS)*+ (BRAZIL)
Specialist electrical
appliance retailer 104,000 2,161,078
MOEBEL WALTHER (GERMANY)
Retailer of furniture and
related products 105,300 4,871,335
PRODEGA++ (SWITZERLAND)
Food retailer 6,550 1,959,211
RDO EQUIPMENT (CLASS A)* (US)
Owner and operator of
John Deere stores 250,000 4,125,000
SAVE GROUP (UK)
Gas station chain 455,633 877,540
Shimachu (Japan)
Furniture retailer 77,000 1,849,650
SUNDRUG (JAPAN)
Operator of outlet drug stores 52,800 844,168
TSUTSUMI JEWELRY (JAPAN)
Manufacturer and retailer
of jewelry 118,400 2,415,185
UGLY DUCKLING* (US)
Used car sales and finance
company 130,000 1,876,875
VIKING OFFICE PRODUCTS* (US)
Office products retailer 175,000 2,406,250
XEBIO (JAPAN)
Retailer of outdoor clothing 172,700 4,053,288
-----------
68,026,224
-----------
SUPPORT SERVICES 1.7%
CMG (NETHERLANDS)
Information technology
consulting 467,900 8,289,209
CRT GROUP (UK)
Provider of training and
recruitment services;
publisher of multimedia
products 1,195,000 4,467,137
HENRY WALKER GROUP (AUSTRALIA)
Provider of civil engineering
and mining services 1,200,000 2,228,680
-----------
14,985,026
-----------
TECHNOLOGY 1.8%
ASYST TECHNOLOGIES* (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 125,000 2,609,375
BTG (UK)
Technology transfer company
assisting in the commercialization
of technological innovations 258,000 2,673,212
CREDENCE SYSTEMS* (US)
Manufacturer of automated
semiconductor test equipment 140,000 2,240,000
GETRONICS (NETHERLANDS)
Computer systems integration
consultant 159,296 4,830,997
SIERRA SEMICONDUCTOR* (US)
Integrated circuit supplier 200,000 3,387,500
-----------
15,741,084
-----------
TELECOMMUNICATIONS 0.5%
AERIAL COMMUNICATIONS* (US)
Provider of cellular telephone
services 300,000 1,481,250
ARCH COMMUNICATIONS GROUP* (US)
Provider of nationwide paging
services 350,000 2,012,500
KVH INDUSTRIES* (US)
Digital navigation systems and
satellite communications 175,000 940,625
-----------
4,434,375
-----------
TRANSPORTATION 2.2%
CELADON GROUP* (US)
Provider of transportation and
international freight services 300,000 3,168,750
COMFORT (SINGAPORE)
Taxi operator 157,000 119,375
DAWSON GROUP (UK)
Rentor of commercial vehicles 1,076,600 3,534,591
IINO KAIUN* (JAPAN)
Shipping company 1,068,000 2,868,300
NATIONAL EXPRESS GROUP (UK)
Long distance coach services
operating in the UK and Europe 460,000 3,854,074
- -------
See footnotes on page 41.
- ----
36
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
TRANSPORTATION (CONTINUED)
RUBIS (FRANCE)
Chemical storage and
distribution company 77,210 $ 2,033,062
SIMON TRANSPORTATION SERVICES* (US)
Povider of temperature-controlled
transportation services 240,000 4,140,000
TONAMI TRANSPORT (JAPAN)
Regional transport company 117,000 457,974
-----------
20,176,126
-----------
VETERINARY PRODUCTS 0.6%
VIRBAC (FRANCE)
Manufacturer of animal drugs
and veterinary products 58,152 5,835,650
-----------
MISCELLANEOUS 0.3%
TAIWAN AMERICAN FUND* (TAIWAN)
Closed-end fund
investing in Taiwan 124,000 2,416,760
-----------
TOTAL COMMON STOCKS
(Cost $850,544,211) 853,438,895
-----------
PREFERRED STOCKS 0.9%
(Cost $7,551,037)
CONSUMER GOODS AND SERVICES 0.9%
GERRY WEBER INTERNATIONAL (GERMANY)
Designer and manufacturer
of ladies' apparel 174,901 7,737,192
-----------
TOTAL INVESTMENTS 95.9%
(Cost $858,095,248) 861,176,087
OTHER ASSETS LESS LIABILITIES 4.1% 36,837,365
-----------
NET ASSETS 100.0% $898,013,452
===========
- --------
See footnotes on page 41.
----
37
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS 95.9.%
COMPUTER AND BUSINESS
SERVICES 11.3%
ADMIRAL (UK)
Computer software and services 950,000 $ 6,137,539
ALTRAN TECHNOLOGIES (FRANCE)
Computer services 8,000 2,785,831
AXIME (FRANCE)
Computer services provider and
systems integrator 42,816 5,155,988
AZLAN (UK)
Integrator of networking
equipment 857,900 8,191,776
BTG (UK)
Technology transfer company
assisting in the commercialization
of technological inventions 650,000 6,734,837
CEGEDIM (FRANCE)
Consulting services 16,700 1,546,959
CMG (NETHERLANDS)
Information technology consulting 590,000 10,452,304
CRT GROUP (UK)
Provider of training and
recruitment services; publisher of
multimedia products 900,000 3,364,371
CSK (JAPAN)
Information services company 255,000 6,065,212
ENATOR* (SWEDEN)
Supplier of computer services 85,200 1,718,137
FIREARMS TRAINING SYSTEMS* (US)
Developer of interactive
simulation systems for military
and police forces 242,500 3,440,469
LOGICA (UK)
Supplier of computer services 591,300 8,337,021
PANAVISION* (US)
Manufacturer of high-precision
film camera systems 138,200 2,332,125
PERSONA++ (UK)
Networking distribution 1,669,914 10,490,040
SECOM (JAPAN)
Security services pioneer 109,000 6,481,452
UNILOG (FRANCE)
Computer consultants 17,241 2,182,667
-----------
85,416,728
-----------
COMPUTER HARDWARE/
PERIPHERALS 19.4%
ACORN COMPUTER* (UK)
Supplier to the educational
computer market 695,000 2,502,027
ASTEC (UK)
Designer and manufacturer of
power conversion products and
electronic components 3,650,000 8,898,518
AVAL DATA (JAPAN)
Manufacturer of computer
peripherals 200,000 1,669,686
CANON (JAPAN)
Manufacturer of printers
and photocopiers 370,000 8,771,363
CHUNG HO COMPUTER (SOUTH KOREA)
Manufacturer of ATMs and
cash dispensers 35,200 1,321,973
EMC* (US)
Manufacturer of enterprise
storage devices 525,000 19,096,875
GATEWAY 2000* (US)
Marketer of personal computers 175,000 9,592,188
IN FOCUS SYSTEMS* (US)
Manufacturer of portable
projection systems 200,000 3,562,500
JABIL CIRCUIT* (US)
Manufacturer of circuit board
assembly systems 150,000 7,246,875
KOMAG* (US)
Manufacturer of thin
film magnetic media for
hard-disk drives 425,000 11,926,563
LEXMARK INTERNATIONAL GROUP
(CLASS A)* (US)
Manufacturer of laser and
inkjet printers and cartridges 475,000 11,043,750
MYLEX* (US)
Data storage management devices 200,000 1,881,250
PSION (UK)
Manufacturer of hand-held
computers 500,000 3,250,600
QUANTUM* (US)
Designer and manufacturer of
hard-disk and tape drives 250,000 10,421,875
READ-RITE* (US)
Manufacturer of recording heads
for disk drives 400,000 10,375,000
SEAGATE TECHNOLOGY* (US)
Global hard-disk drive supplier 350,000 16,056,250
STORAGE TECHNOLOGY* (US)
Tape- and disk-based data
storage equipment 300,000 10,537,500
TDK (JAPAN)
Magnetic tapes
and heads for disk drives 95,000 6,846,105
VARITRONIX INTERNATIONAL (HONG KONG)
Manufacturer of color printers,
digital video storage, and
editing systems 1,070,000 1,491,751
-----------
146,492,649
-----------
- --------
See footnotes on page 41.
- ----
38
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
COMPUTER SOFTWARE 10.6%
BMC SOFTWARE* (US)
Developer of mainframe and
Unix utility software 200,000 $ 8,637,500
CADENCE DESIGN SYSTEMS* (US)
Electronic design
automation software 250,000 8,000,000
CODA GROUP (UK)
Developer of financial
accounting software 670,000 1,415,636
EIDOS* (UK)
Developer of entertainment
software 242,000 3,382,574
MENTOR GRAPHICS* (US)
Electronic design
automation software 600,000 4,256,250
MISYS (UK)
Provider of software products
and services for the financial
services industry 208,800 4,199,613
NETWORK GENERAL* (US)
Local area network
management software 325,000 4,489,063
PARAMETRIC TECHNOLOGY* (US)
Developer of mechnical
design software 200,000 9,037,500
STRUCTURAL DYNAMICS RESEARCH* (US)
Developer of mechnical
design software 530,000 11,163,125
SYNOPSYS* (US)
Integrated circuit design software 300,000 9,618,750
TECNOMATIX TECHNOLOGIES* (ISRAEL)
Developer of computer-aided
production software 350,000 8,925,000
3DO* (US)
Developer of video game software
and game platforms 750,000 2,625,000
VIEWLOGIC SYSTEMS* (US)
Developer of electronic design
automation software 300,000 4,200,000
-----------
79,950,011
-----------
DISTRIBUTORS 1.2%
ABACUS POLAR (UK)
Distributor of electronic
components 1,240,000 4,282,665
ACCTON TECHNOLOGY (GDRS) (TAIWAN)
Distributor of
computer networks 345,000 2,001,000
PREMIER FARNELL* (UK)
Distributor of electronic
components 350,000 2,665,086
-----------
8,948,751
-----------
ELECTRONICS 9.8%
ADAPTEC* (US)
Manufacturer of computer
input-output systems 250,000 9,265,625
ADFLEX SOLUTIONS* (US)
Flexible circuit boards 200,000 3,000,000
BURR-BROWN* (US)
Manufacturer of analog and
mixed-signal integrated circuits 375,000 11,109,375
ELEC & ELTEK INTERNATIONAL HOLDINGS
(HONG KONG)
Manufacturer of printed
circuit boards 14,500,000 3,743,578
GENERAL ELECTRIC (UK)
Supplier of diversified
electronics 1,250,000 7,456,064
HADCO* (US)
Manufacturer of complex
printed circuit boards 150,000 6,393,750
HIROSE ELECTRONICS (JAPAN)
Manufacturer of specialized
connectors 101,100 5,525,982
HITACHI (JAPAN)
Manufacturer of diversified
electronics 600,000 5,434,354
MURATA MANUFACTURING (JAPAN)
Manufacturer of capacitors 167,000 6,155,470
PHILIPS ELECTRONICS (NETHERLANDS)
Consumer and industrial
electronics 64,000 3,345,653
VENTURE MANUFACTURING (SINGAPORE)
Contract manufacturer 2,800,000 7,935,301
YAGEO (GDRS)* (TAIWAN)
Manufacturer of passive
components 250,000 4,406,175
YAGEO (GDRS)+ (TAIWAN)
Manufacturer of passive
components 4,272 75,293
-----------
73,846,620
-----------
MEDICAL PRODUCTS AND
TECHNOLOGY 2.4%
BIORA* (SWEDEN)
Developer, manufacturer, and
marketer of periodontal products 60,000 566,688
COCHLEAR (AUSTRALIA)
Developer and marketer
of hearing aids 1,650,000 4,892,795
FRESENIUS (GERMANY)
Dialysis equipment 29,700 6,612,213
FRESENIUS (RIGHTS)* (GERMANY)
Dialysis equipment 29,700 115,070
PHARMACIA & UPJOHN (SWEDEN)
Global pharmaceutical and
biotechnology company 147,800 4,263,280
SHIRE PHARMACEUTICALS* (UK)
Biotechnology company
specializing in metabolic bone
and alzheimer's diseases 611,551 2,166,819
-----------
18,616,865
-----------
- --------
See footnotes on page 41.
----
39
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
NETWORKING/COMMUNICATIONS
INFRASTRUCTURE 6.7%
ANITE GROUP* (UK)
Supplier of data communications
and software products 1,950,000 $ 1,600,514
ASCEND COMMUNICATIONS* (US)
Developer of network
access products 150,000 6,871,875
CABLETRON SYSTEMS* (US)
Manufacturer of local area
network switches and hubs 260,000 8,970,000
CIDCO* (US)
Manufacturer of telephone
call identification systems 200,000 2,575,000
DSP COMMUNICATIONS* (US)
Developer of chipsets for the
wireless personal communications
services (PCS) market 250,000 1,976,563
ECI TELECOMMUNICATIONS (ISRAEL)
Provider of digital
telecommunications and data
transmissions systems 550,000 11,962,500
L.M. ERICSSON TELEFON (SERIES B)
(SWEDEN)
Manufacturer of
telecommunications equipment 207,000 6,552,138
FILTRONIC COMTEK (UK)
Designer and manufacturer of
sophisticated devices for mobile
telecommunications systems 203,700 1,023,017
NEC (JAPAN)
Manufacturer and marketer of
computers and telecommunications
devices 413,000 5,041,742
TELEMETRIX (UK)
Networking components 180,000 149,203
VANSTAR* (US)
Computer reseller and provider of
PCnetwork infrastructure services 500,000 3,687,500
-----------
50,410,052
-----------
SEMICONDUCTORS 10.9%
C-CUBE MICROSYSTEMS* (US)
Video compression circuits 350,000 8,640,625
ESS TECHNOLOGY* (US)
Mixed-signal semiconductor
audio and video circuits 400,000 5,475,000
INTERNATIONAL RECTIFIER* (US)
Power semiconductors 500,000 5,750,000
LATTICE SEMICONDUCTOR* (US)
Programmable logic devices 200,000 11,200,000
MAXIM INTEGRATED PRODUCTS* (US)
Manufacturer of linear and
mixed-signal integrated circuits 300,000 15,843,750
MICROCHIP TECHNOLOGY* (US)
Field programmable
microcontrollers 487,500 15,264,844
ROHM (JAPAN)
Producer of custom linear
integrated circuits 97,000 7,517,366
S3* (US)
Supplier of multimedia
acceleration circuits for PCs 600,000 5,718,750
SAMSUNG ELECTRONICS (GDRS)
(1/2 NON-VOTING)*+ (SOUTH KOREA)
Manufacturer of consumer
electronics and semiconductors 187,430 4,404,605
TOWER SEMICONDUCTOR (ISRAEL)
Semiconductor foundry services 200,000 2,512,500
-----------
82,327,440
-----------
SEMICONDUCTOR CAPITAL
EQUIPMENT 16.4%
ADE* (US)
Manufacturer of semiconductor
measurement systems 400,000 7,400,000
ADVANTEST (JAPAN)
Producer of measuring instruments
and semiconductor testing devices 37,000 2,054,422
APPLIED MATERIALS*++ (US)
Manufacturer of semiconductor
fabrication equipment 280,000 15,347,500
ASM LITHOGRAPHY HOLDING*
(NETHERLANDS)
Manufacturer of semiconductor
production equipment 21,500 1,607,983
ASM LITHOGRAPHY HOLDING*
(NETHERLANDS)
Manufacturer of semiconductor
production equipment 110,000 8,751,875
ASYST TECHNOLOGIES*++ (US)
Miniature clean-room environment
devices for the manufacture of
silicon wafers 300,000 6,262,500
CREDENCE SYSTEMS* (US)
Manufacturer of automated
semiconductor test equipment 275,000 4,400,000
ELECTRO SCIENTIFIC INDUSTRIES* (US)
Manufacturer of memory
circuit repair systems 200,000 5,587,500
ETEC SYSTEMS* (US)
Photomask manufacturing systems 250,000 7,234,375
MIMASU SEMICONDUCTOR (JAPAN)
Wafer inspection devices 180,000 2,750,256
NOVELLUS SYSTEMS* (US)
Chemical vapor deposition
equipment 100,000 5,750,000
SHINKAWA (JAPAN)
Producer of wire bonders 28,000 557,927
- --------
See footnotes on page 41.
- ----
40
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 1997
SHARES VALUE
------ -----
SILICONWARE PRECISION INDUSTRIES
(GDRS)* (TAIWAN)
Integrated circuit packaging 220,000 $ 4,327,400
TENCOR INSTRUMENTS* (US)
Wafer inspection devices 408,100 18,185,956
TERADYNE* (US)
Manufacturer of semiconductor
test equipment 400,000 13,100,000
ULTRATECH STEPPER* (US)
Photolithography systems 196,000 3,515,750
VEECO INSTRUMENTS*++ (US)
Ion beam etching and surface
measurement systems 550,000 17,256,250
-----------
124,089,694
-----------
TELECOMMUNICATIONS 5.3%
COLT TELECOMMUNICATIONS* (UK)
Telecommunications services
provider 598,800 2,725,043
FREEPAGES GROUP (UK)
Provider of classified information
by telephone and the Internet 4,000,000 2,632,986
MILLICOM INTERNATIONAL CELLULAR*
(Luxembourg)
Cellular services operator 150,000 6,871,875
NOKIA (FINLAND)
Manufacturer and developer
of telecommunications systems
and equipment 80,280 5,014,795
SK TELECOMMUNICATIONS (ADRS) (SOUTH KOREA)
Provider of mobile
telecommunications and
paging services 386,250 3,669,375
TELEBRAS (ADRS) (BRAZIL)
Provider of telecommunications
services 8,000 916,937
TELECOM ITALIA (ITALY)
Provider of telecommunications
services 2,400,000 6,322,992
TELEFONICA DE ESPANA (SPAIN)
Provider of telecommunications
services 96,000 2,463,225
SHARES OR
PRIN. AMT. VALUE
---------- -----
TELECOMMUNICATIONS (CONTINUED)
UNITED TELECOMMUNICATIONS (TAIWAN)
Provider of telecommunications
services 7,600 $1,998,800
shs.
VIDESH SANCHAR NIGAM (GDRS)* (INDIA)
Provider of international
telecommunications services 102,500 1,998,750
VODAFONE (UK)
Cellular services operator 1,200,000 5,373,242
-----------
39,988,020
-----------
MISCELLANEOUS 1.9%
CELSIUS INDUSTRIES (SERIES B) (SWEDEN)
Producer of defense and
technology products 71,000 1,268,666
GEMSTAR INTERNATIONAL* (BERMUDA)
Interactive programming guides 500,000 6,437,500
GLORY KOGYO (JAPAN)
Manufacturer and major exporter
of currency-handling machines 141,000 2,554,147
ISOTRON (UK)
Irradiation services 475,000 2,570,818
LINX PRINTING TECHNOLOGY++ (UK)
Manufacturer of specialized
printers 820,000 1,932,482
-----------
14,763,613
-----------
TOTAL COMMON STOCKS
(Cost $657,660,789) 724,850,443
-----------
CONVERTIBLE BONDS 0.8%
SEMICONDUCTORS 0.8%
EIDOS (UK)
61/4%, 7/31/2002 $1,600,000 1,522,000
UNITED MICRO ELECTRONICS (TAIWAN)
11/4%, 6/8/2004 2,120,000 4,632,200
-----------
TOTAL CONVERTIBLE BONDS
(Cost $5,162,130) 6,154,200
-----------
TOTAL INVESTMENTS 96.7%
(Cost $662,822,919) 731,004,643
OTHER ASSETS LESS LIABILITIES 3.3% 25,203,950
-----------
NET ASSETS 100.0% $756,208,593
===========
- -------
* Non-income producing security.
+ Rule 144A Security.
++ Affiliated issuer (a Series' holdings of an issuer representing 5% or more of
the outstanding voting securities of the issuer).
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
----
41
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 1997
EMERGING MARKETS GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND FUND
------------- ----------------- -------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see portfolio
of investments):
Common stocks* .................... $90,616,633 $80,342,500 $171,593,785 $853,438,895 $724,850,443
Convertible bonds ................. -- -- -- -- 6,154,200
Preferred stocks .................. -- -- -- 7,737,192 --
----------- ----------- ------------ ------------ ------------
Total investments .................... 90,616,633 80,342,500 171,593,785 861,176,087 731,004,643
Cash ................................. 2,537,446 12,325,319 8,813,054 31,865,837 25,111,022
Receivable for securities sold ....... 751,622 69,535 1,386,708 7,297,763 2,822,372
Receivable for Capital Stock sold .... 580,710 1,256,299 345,030 4,483,517 995,685
Receivable for dividends and interest 429,279 11,841 539,586 2,591,893 591,223
Unrealized appreciation on
forward currency contracts ........ 412,986 -- 322,592 1,143,189 220,600
Expenses prepaid to shareholder
service agent ..................... 55,136 50,130 108,272 590,866 603,213
Other ................................ 21,349 49,766 29,493 90,782 50,822
----------- ----------- ------------ ------------ ------------
Total Assets ......................... 95,405,161 94,105,390 183,138,520 909,239,934 761,399,580
----------- ----------- ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased ..... 1,050,642 3,636,414 1,828,155 5,288,556 --
Payable for Capital Stock repurchased 291,287 198,086 569,281 4,330,471 3,934,880
Unrealized depreciation on forward
currency contracts ................ 568 -- 1,054 1,807 --
Accrued expenses, taxes, and other ... 247,566 245,270 359,626 1,605,648 1,256,107
----------- ----------- ------------ ------------ ------------
Total Liabilities .................... 1,590,063 4,079,770 2,758,116 11,226,482 5,190,987
----------- ----------- ------------ ------------ ------------
Net Assets ........................... $93,815,098 $90,025,620 $180,380,404 $898,013,452 $756,208,593
=========== =========== ============ ============ ============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................... $ 2,699 $ 4,958 $ 12,512 $ 27,370 $ 40,270
Class B ........................... 280 2,796 1,732 13,165 2,565
Class D ........................... 2,536 3,560 7,043 24,304 16,144
Additional paid-in capital ........... 83,631,579 82,950,751 157,509,552 894,088,710 653,748,472
Accumulated net investment loss ...... (812,802) (585,236) (957,734) (3,724,932) (5,860,354)
Undistributed/accumulated net
realized gain (loss) on investments 1,911,788 (2,331,989) 939,705 3,435,739 39,872,876
Net unrealized appreciation
of investments .................... 16,247,418 10,856,457 30,861,041 45,641,799 83,414,051
Net unrealized depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts .... (7,168,400) (875,677) (7,993,447) (41,492,703) (15,025,431)
----------- ----------- ------------ ------------ ------------
Net Assets ........................... $93,815,098 $90,025,620 $180,380,404 $898,013,452 $756,208,593
=========== =========== ============ ============ ============
NET ASSETS:
Class A ........................... $46,640,419 $39,596,268 $106,530,796 $386,491,384 $520,089,313
Class B ........................... $ 4,685,586 $22,184,950 $ 14,580,108 $179,667,227 $ 32,372,966
Class D ........................... $42,489,093 $28,244,402 $ 59,269,500 $331,854,841 $203,746,314
SHARES OF CAPITAL STOCK
OUTSTANDING:
Class A ........................... 2,698,979 4,958,306 12,512,125 27,369,982 40,269,478
Class B ........................... 279,820 2,796,425 1,732,316 13,164,750 2,565,454
Class D ........................... 2,536,290 3,559,711 7,042,744 24,304,537 16,143,581
NET ASSET VALUE PER SHARE:
Class A ........................... $17.28 $7.99 $8.51 $14.12 $12.91
Class B ........................... $16.75 $7.93 $8.42 $13.65 $12.62
Class D ........................... $16.75 $7.93 $8.42 $13.65 $12.62
</TABLE>
- ----------------
* Includes affiliated issuers (a Series' holdings of an issuer representing 5%
or more of the outstanding voting securities of the issuer) with cost of
$16,350,979 and $25,909,597, and value of $16,426,613 and $35,941,272,
respectively, for the Global Smaller Companies Fund and the Global Technology
Fund.
See Notes to Financial Statements.
- ----
42
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 1997
<TABLE>
<CAPTION>
EMERGING MARKETS GLOBAL GROWTH GLOBAL SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND FUND
------------- ----------------- -------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ............................ $ 434,769 $ 204,601 $ 879,517 $4,717,508 $1,384,008
Interest ............................. 58,337 131,205 132,922 852,016 684,001
---------- ---------- ---------- ------------ ------------
Total Investment Income* ............. 493,106 335,806 1,012,439 5,569,524 2,068,009
---------- ---------- ---------- ------------ ------------
EXPENSES:
Management fees ...................... 481,228 379,154 884,305 4,222,667 3,920,961
Distribution and service fees ........ 291,454 203,625 475,009 2,800,636 1,906,081
Shareholder account services ......... 127,067 99,258 260,058 1,413,891 1,311,823
Custody and related services ......... 65,819 47,290 68,492 322,705 209,153
Shareholder reports and
communications .................... 59,537 54,019 55,330 84,650 84,229
Registration ......................... 40,789 71,925 53,831 130,649 81,124
Auditing and legal fees .............. 28,685 32,684 28,685 28,683 28,684
Directors' fees and expenses ......... 5,028 4,766 4,797 4,992 4,832
Miscellaneous ........................ 6,625 2,098 5,327 17,340 17,255
---------- ---------- ---------- ------------ ------------
Total Expenses ....................... 1,106,232 894,819 1,835,834 9,026,213 7,564,142
---------- ---------- ---------- ------------ ------------
Net Investment Loss .................. (613,126) (559,013) (823,395) (3,456,689) (5,496,133)
---------- ---------- ---------- ------------ ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on
investments** ..................... 4,470,485 (1,183,183) 2,796,701 5,120,168 56,036,130
Net realized gain (loss) from foreign
currency transactions** ........... (1,423,246) (264,748) (1,724,037) (1,078,938) 40,853
Net change in unrealized
appreciation/depreciation of
investments ....................... 7,704,729 11,357,464 13,834,901 13,534,566 59,631,149
Net change in unrealized
depreciation on translation of assets
and liabilities denominated in
foreign currencies and forward
currency contracts ................ (4,557,836) (470,473) (5,183,847) (38,090,368) (9,265,469)
---------- ---------- ---------- ------------ ------------
Net Gain (Loss) on Investments and
Foreign Currency Transactions ..... 6,194,132 9,439,060 9,723,718 (20,514,572) 106,442,663
---------- ---------- ---------- ------------ ------------
Increase (Decrease) in Net Assets
From Operations ................... $5,581,006 $8,880,047 $8,900,323 $(23,971,261) $100,946,530
========== ========== ========== ============ ============
- -------------------
* Net of foreign taxes withheld
as follows: $62,300 $22,818 $96,907 $712,709 $283,590
** Includes net realized gain from
affiliated issuers as follows: -- -- -- $ 98,808 $679,866
See Notes to Financial Statements.
</TABLE>
----
43
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS GLOBAL GROWTH
FUND GROWTH FUND OPPORTUNITIES FUND
----------------------- -------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS 5/28/96* SIX MONTHS 11/1/95*
ENDED ENDED ENDED TO ENDED TO
4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
----------------------- ------------- ----------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $ (613,126) $ (58,354) $ (559,013) $ (165,128) $ (823,395) $ (985,123)
Net realized gain (loss) on investments 4,470,485 3,110,034 (1,183,183) (904,503) 2,796,701 (572,959)
Net realized gain (loss) from foreign
currency transactions (1,423,246) 2,141,677 (264,748) (48,331) (1,724,037) 280,999
Net change in unrealized
appreciation/depreciation
of investments 7,704,729 6,001,037 11,357,464 (501,007) 13,834,901 17,026,140
Net change in unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in foreign
currencies and forward currency
contracts (4,557,836) (4,614,858) (470,473) (405,204) (5,183,847) (2,809,600)
----------- ----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets
from operations 5,581,006 6,579,536 8,880,047 (2,024,173) 8,900,323 12,939,457
----------- ----------- ---------- ---------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income-- Class A -- -- -- -- -- --
Net realized gain on investments:
Class A ............................ (2,600,409) (2,689,619) -- -- -- --
Class B ............................ (155,283) -- -- -- -- --
Class D ............................ (2,512,690) (1,872,543) -- -- -- --
----------- ----------- ---------- ---------- ----------- -----------
Decrease in net assets from
distributions (5,268,382) (4,562,162) -- -- -- --
----------- ----------- ---------- ---------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:**
Net proceeds from sale of shares:
Class A ............................ 4,132,869 12,139,764 10,117,976 19,208,602 7,340,827 106,023,483
Class B ............................ 1,793,175 2,847,268 8,892,601 11,237,933 5,370,129 9,447,410
Class D ............................ 3,920,861 18,419,176 7,043,817 12,152,846 7,334,841 48,762,322
Shares issued in payment of
dividends -- Class A -- -- -- -- -- --
Exchanged from associated Funds:
Class A ............................ 13,827,747 18,336,472 17,783,292 3,554,578 2,280,346 13,737,482
Class B ............................ 134,307 52,151 1,749,942 20,098 220,857 147,370
Class D ............................ 6,908,062 6,116,903 9,869,738 2,931,518 3,088,918 8,540,034
Shares issued in payment of
gain distributions:
Class A ............................ 1,907,644 1,773,043 -- -- -- --
Class B ............................ 145,807 -- -- -- -- --
Class D ............................ 2,266,472 1,649,485 -- -- -- --
----------- ----------- ---------- ---------- ----------- -----------
Total 35,036,944 61,334,262 55,457,366 49,105,575 25,635,918 186,658,101
----------- ----------- ---------- ---------- ----------- -----------
Cost of shares repurchased:
Class A ............................ (11,742,074) (15,705,367) (3,013,507) (997,418) (13,674,834) (15,204,795)
Class B ............................ (33,470) (5,615) (420,272) (133,610) (342,856) (34,193)
Class D ............................ (9,343,204) (4,688,461) (1,486,488) (404,805) (4,411,267) (3,136,356)
Exchanged into associated Funds:
Class A ............................ (12,809,462) (15,800,882) (9,171,286) (993,426) (2,607,777) (7,098,155)
Class B ............................ (228,570) (1,437) (697,843) (96,640) (443,525) (169,376)
Class D ............................ (9,135,695) (5,428,114) (3,591,855) (386,045) (2,982,142) (3,648,119)
----------- ----------- ---------- ---------- ----------- -----------
Total ................................ (43,292,475) (41,629,876) (18,381,251) (3,011,944) (24,462,401) (29,290,994)
----------- ----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets
from capital share transactions .... (8,255,531) 19,704,386 37,076,115 46,093,631 1,173,517 157,367,107
----------- ----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets .... (7,942,907) 21,721,760 45,956,162 44,069,458 10,073,840 170,306,564
NET ASSETS:
Beginning of period .................. 101,758,005 80,036,245 44,069,458 -- 170,306,564 --
----------- ----------- ---------- ---------- ----------- -----------
End of period ........................ $ 93,815,098 $101,758,005 $90,025,620 $44,069,458 $180,380,404 $170,306,564
=========== =========== ========== ========== =========== ===========
</TABLE>
- ----------
See footnotes on page 45.
- ------
44
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
----------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/97 10/31/96 4/30/97 10/31/96
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ..................................... $ (3,456,689) $ (1,521,537) $ (5,496,133) $ (6,732,322)
Net realized gain (loss) on investments ................. 5,120,168 36,490,841 56,036,130 (19,588,016)
Net realized gain (loss) from foreign
currency transactions ................................. (1,078,938) 1,559,761 40,853 5,689,533
Net change in unrealized appreciation/depreciation
of investments ........................................ 13,534,566 14,883,512 59,631,149 (26,884,293)
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities denominated in
foreign currencies and forward currency contracts ..... (38,090,368) (6,531,471) (9,265,469) (2,377,802)
------------- ------------- ------------- -------------
Increase (decrease) in net assets from operations ....... (23,971,261) 44,881,106 100,946,530 (49,892,900)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income-- Class A ......................... -- -- -- (734,205)
Net realized gain on investments:
Class A ............................................... (16,938,227) (7,753,041) -- (29,793,277)
Class B ............................................... (5,226,787) -- -- --
Class D ............................................... (14,328,867) (6,615,915) -- (10,861,462)
------------- ------------- ------------- -------------
Decrease in net assets from
distributions ......................................... (36,493,881) (14,368,956) -- (41,388,944)
------------- ------------- ------------- -------------
CAPITAL SHARE
TRANSACTIONS:**
Net proceeds from sale of shares:
Class A ............................................... 100,663,697 216,788,438 24,129,193 202,973,417
Class B ............................................... 94,249,519 105,243,040 12,634,195 19,512,733
Class D ............................................... 80,266,611 177,428,825 12,684,784 93,281,519
Shares issued in payment of
dividends-- Class A ................................... -- -- -- 530,711
Exchanged from associated Funds:
Class A ............................................... 24,530,302 71,523,117 76,493,817 49,024,078
Class B ............................................... 6,181,844 576,794 5,864,623 119,863
Class D ............................................... 13,721,780 32,459,050 6,932,522 36,228,561
Shares issued in payment of gain
distributions:
Class A ............................................... 15,751,599 7,033,698 -- 27,593,949
Class B ............................................... 4,800,702 -- -- --
Class D ............................................... 13,376,946 6,106,235 -- 10,345,726
------------- ------------- ------------- -------------
Total ................................................... 353,543,000 617,159,197 138,739,134 439,610,557
Cost of shares repurchased:
Class A ............................................... (52,399,467) (30,945,950) (71,028,950) (88,142,523)
Class B ............................................... (9,532,852) (900,770) (2,112,760) (232,986)
Class D ............................................... (24,997,053) (17,014,912) (28,462,687) (27,805,782)
Exchanged into associated Funds:
Class A ............................................... (26,509,144) (34,854,479) (80,826,240) (74,146,717)
Class B ............................................... (8,983,641) (326,119) (5,558,193) (142,667)
Class D ............................................... (12,446,259) (11,852,034) (11,598,115) (51,102,325)
------------- ------------- ------------- -------------
Total ................................................... (134,868,416) (95,894,264) (199,586,945) (241,573,000)
------------- ------------- ------------- -------------
Increase (decrease) in net assets from
capital share transactions ............................ 218,674,584 521,264,933 (60,847,811) 198,037,557
------------- ------------- ------------- -------------
Increase in net assets .................................. 158,209,442 551,777,083 40,098,719 106,755,713
NET ASSETS:
Beginning of period ..................................... 739,804,010 188,026,927 716,109,874 609,354,161
------------- ------------- ------------- -------------
End of period ........................................... $ 898,013,452 $ 739,804,010 $ 756,208,593 $ 716,109,874
============= ============= ============= =============
- ----------
* Commencement of operations.
** The Fund began offering Class B shares on April 22, 1996, for the then existing Series.
See Notes to Financial Statements.
</TABLE>
-----
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 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 a 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 on which a separate vote of any class is
required. 2. The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to make
certain estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the Fund:
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. Other securities not listed
on an exchange or security market, or securities in which there were no
transactions, are valued at the mean of the most recent bid and asked
prices. 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
- -----
46
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
portfolio holdings, or other amounts receivable or payable in foreign
currency. A forward contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. Certain risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts. The contracts are
valued daily at current exchange rates and any unrealized gain or loss is
included in net unrealized appreciation or depreciation on translation of
assets and liabilities denominated in foreign currencies and forward
currency contracts. The gain or loss, if any, arising from the difference
between the settlement value of the forward contract and the closing of
such contract, is included in net realized gain or loss from foreign
currency transactions.
d. There is no provision for federal income 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, and realized 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, except that certain dividends from foreign securities where the
ex-dividend dates may have passed are recorded as soon as the Fund is
informed of the dividends. Interest income is recorded on an accrual
basis.
g. All income, expenses (other than class-specific expenses), and realized
and unrealized gains or losses are allocated daily to each class of shares
based upon the relative value of shares of each class. Class-specific
expenses, which include distribution and service fees and any other items
that are specifically attributed to a particular class, are charged
directly to such class. For the six months ended April 30, 1997,
distribution and service fees were the only class-specific expenses.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended April 30, 1997, were as follows:
SERIES PURCHASES SALES
- ---------------- ----------- -----------
International Fund $ 26,336,050 $ 41,506,505
Emerging Markets Growth
Fund 47,383,344 16,908,934
Global Growth
Opportunities Fund 57,653,180 62,654,371
Global Smaller
Companies Fund 384,499,478 215,755,637
Global Technology Fund 311,989,927 385,835,888
At April 30, 1997, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio
securities, including the effects of foreign currency translations, were as
follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
- ---------------- ------------ ------------
International Fund $ 13,424,878 $ 4,738,677
Emerging Markets Growth
Fund 12,083,275 2,094,257
Global Growth
Opportunities Fund 33,687,971 11,125,756
Global Smaller
Companies Fund 107,145,754 104,064,915
Global Technology Fund 146,457,030 78,275,306
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 six months ended April 30, 1997, the
Manager, at its discretion, waived a portion of its fees for the Emerging
Markets GrowthFund equal to $9,932. The management fee reflected in the
statements of operations represents 1.22% 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:
<PAGE>
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
- ---------------- ------------ -----------
International Fund $ 8,164 $ 62,584
Emerging Markets Growth
Fund 33,029 261,087
Global Growth
Opportunities Fund 24,191 193,624
Global Smaller
Companies Fund 258,978 2,093,881
Global Technology Fund 92,043 751,603
-----
47
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Each Series of the Fund has an Administration, Shareholder Services and
Distribution Plan (the "Plan") with respect to distribution of its shares. Under
the Plan, with respect to Class A shares, service organizations can enter into
agreements with the Distributor and receive a continuing fee of up to 0.25% on
an annual basis, payable quarterly, of the average daily net assets of the Class
A shares attributable to the particular service organizations for providing
personal services and/or the maintenance of shareholder accounts. The
Distributor charges such fees to the Fund pursuant to the Plan. For the six
months ended April 30, 1997, 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 $47,804,
$30,574, $129,349, $461,462, and $692,416, respectively, or 0.20%, 0.22%, 0.24%,
0.24%, and 0.25%, respectively, per annum of the average daily net assets of
Class A shares.
Under the Plan, with respect to Class B and Class D shares, 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 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 provides funding to the
Distributor to enable it to pay commissions to dealers at the time of the sale
of the related Class B shares.
For the six months ended April 30, 1997, 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 $ 17,973 $ 225,677
Emerging Markets Growth
Fund 75,631 97,420
Global Growth
Opportunities Fund 59,956 285,704
Global Smaller
Companies Fund 746,084 1,593,090
Global Technology Fund 141,752 1,071,913
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares occurring within one year of purchase. For the six months ended
April 30, 1997, such charges were as follows:
SERIES AMOUNT
- ---------------- ---------
International Fund $ 9,324
Emerging Markets Growth Fund 6,421
Global Growth Opportunities Fund 10,800
Global Smaller Companies Fund 97,086
Global Technology Fund 34,672
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 shares distribution fees retained by the Distributor
for the six months ended April 30, 1997, were as follows:
SERIES AMOUNT
---------------- ---------
International Fund $ 4,931
Emerging Markets Growth Fund 24,116
Global Growth Opportunities Fund 14,919
Global Smaller Companies Fund 254,210
Global Technology Fund 35,110
Seligman Services, Inc., an affiliate of the Manager, is eligible to
receive commissions from certain sales of Fund shares, as well as distribution
and service fees pursuant to the Plan. For the six months ended April 30, 1997,
Seligman Services, Inc. received commissions from sales of Fund shares and
distribution and service fees, pursuant to the Plan, as follows:
DISTRIBUTION
SERIES COMMISSIONS AND SERVICE FEES
----------------- ------------ ----------------
International Fund $ 694 $ 8,949
Emerging Markets Growth
Fund 1,064 1,725
Global Growth
Opportunities Fund 1,102 3,033
Global Smaller
Companies Fund 26,058 22,579
Global Technology Fund 15,546 39,197
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 $ 127,067
Emerging Markets Growth Fund 99,258
Global Growth Opportunities Fund 260,058
GLOBAL SMALLER COMPANIES FUND 1,413,891
Global Technology Fund 1,311,823
<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.
- -----
48
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fees of $30,000 were incurred by the Fund for the legal services of
Sullivan & Cromwell, a retired member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The cost of such fees
and interest is included in directors' fees and expenses, and the following
accumulated balances thereof at April 30, 1997 are included in other
liabilities:
SERIES AMOUNT
---------------- --------
International Fund $11,773
Emerging Markets GrowthFund 1,031
Global Growth Opportunities Fund 2,226
Global Smaller Companies Fund 8,109
Global Technology Fund 4,926
5. The Fund has 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. To date, the Fund has not borrowed from the credit
facility.
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.
7. Affiliated issuers, as defined under the Investment Company Act of 1940, as
amended, are those in which a Series' holdings of an issuer represent 5% or more
of the outstanding voting securities of the issuer. A summary of the Fund's
transactions in the securities of these issuers during the six months ended
April 30, 1997 is as follows:
<TABLE>
<CAPTION>
ACQUISITIONS DISPOSITIONS
BEGINNING -------------------- -------------------- ENDING REALIZED DIVIDEND ENDING
AFFILIATE SHARES SHARES COST SHARES COST SHARES GAIN INCOME VALUE
- ----------- ---------- ----------- ------- ---------- ------- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GLOBAL SMALLER COMPANIES FUND
La Doria .............. 857,766 1,394,400 $ 4,670,222 -- $ -- 2,252,166 $ -- -- $ 5,979,610
L'Europeenne
d'Extincteurs ....... 131,660 3,500 214,589 4,400 203,447 130,760 98,808* -- 8,487,792
Prodega ............... 4,450 2,100 559,042 -- -- 6,550 -- -- 1,959,211
----------- ----------- --------- ---------
$ 5,443,853 $ 203,447 $ 98,808 $16,426,613
=========== =========== ========= ===========
GLOBAL TECHNOLOGY FUND
Asyst Technologies .... 300,000 -- $ -- -- $ -- 300,000 $ -- -- $ 6,262,500
Linx Printing ......... 820,000 -- -- -- -- 820,000 -- -- 1,932,482
Persona ............... 1,669,914 -- -- -- -- 1,669,914 -- -- 10,490,040
Veeco Instruments ..... 400,000 200,000 5,222,671 50,000 1,000,000 550,000 679,866 -- 17,256,250
----------- ----------- --------- -----------
$ 5,222,671 $ 1,000,000 $ 679,866 $35,941,272
=========== =========== ========= ===========
</TABLE>
- ----------
* Includes net realized loss from foreign currency transactions of $7,831.
-----
49
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
8. The Fund has 2,000,000,000 shares of Capital Stock authorized. The Board of
Directors, at its discretion, may classify any unissued shares of Capital Stock
among any Series of the Fund. As of April 30, 1997, 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>
INTERNATIONAL EMERGING MARKETS GLOBAL GROWTH
FUND GROWTH FUND OPPORTUNITIES FUND
----------------------- --------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS 5/28/96* SIX MONTHS 11/1/95*
ENDED ENDED ENDED TO ENDED TO
4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
------------- ---------- ------------- ----------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 244,726 707,786 1,322,074 2,715,379 872,871 14,315,714
Class B .................................... 108,971 167,160 1,161,368 1,589,508 645,812 1,161,258
Class D .................................... 238,104 1,095,491 926,899 1,719,727 881,793 6,425,478
Shares issued in payment
of dividends-- Class A ..................... -- -- -- -- -- --
Exchanged from associated Funds:
Class A .................................... 814,808 1,076,633 2,389,493 501,328 272,325 1,797,362
Class B .................................... 8,149 3,104 224,249 2,904 26,481 18,033
Class D .................................... 419,536 365,666 1,270,619 415,187 373,020 1,108,493
Shares issued in payment of gain distributions:
Class A .................................... 112,811 106,939 -- -- -- --
Class B .................................... 8,858 -- -- -- -- --
Class D .................................... 137,696 101,382 -- -- -- --
--------- --------- --------- --------- --------- ---------
Total 2,093,659 3,624,161 7,294,702 6,944,033 3,072,302 24,826,338
--------- --------- --------- --------- --------- ---------
Shares repurchased:
Class A .................................... (693,898) (918,125) (397,643) (143,005) (1,627,914) (1,897,331)
Class B .................................... (2,036) (327) (57,013) (19,141) (41,022) (4,203)
Class D .................................... (568,010) (278,839) (196,722) (58,321) (529,264) (393,805)
Exchanged into associated Funds:
Class A .................................... (749,115) (922,041) (1,286,918) (142,402) (310,845) (910,057)
Class B .................................... (13,972) (87) (91,666) (13,784) (53,295) (20,748)
Class D .................................... (554,002) (323,609) (462,532) (55,146) (361,340) (461,631)
-------- -------- -------- ------- -------- --------
Total (2,581,033) (2,443,028) (2,492,494) (431,799) (2,923,680) (3,687,775)
--------- --------- --------- --------- --------- ---------
Increase (decrease) in shares (487,374) 1,181,133 4,802,208 6,512,234 148,622 21,138,563
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
------------------------ -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/97 10/31/96 4/30/97 10/31/96
----------- -------- ---------- --------
<S> <C> <C> <C> <C>
Sale of shares:
Class A .................................... 6,883,702 14,815,923 1,854,384 17,384,851
Class B .................................... 6,638,697 7,109,733 996,496 1,722,202
Class D .................................... 5,649,633 12,391,966 994,758 8,129,479
Shares issued in payment
of dividends-- Class A ..................... -- -- -- 46,553
Exchanged from associated Funds:
Class A .................................... 1,668,254 4,872,301 5,994,927 4,299,624
Class B .................................... 434,759 38,810 502,984 10,746
Class D .................................... 966,365 2,260,491 562,483 3,216,569
Shares issued in payment of gain distributions:
Class A .................................... 1,069,354 543,143 -- 2,420,521
Class B .................................... 335,948 -- -- --
Class D .................................... 936,106 481,944 -- 918,803
---------- ---------- ---------- ----------
Total ........................................ 24,582,818 42,514,311 10,906,032 38,149,348
---------- ---------- ---------- ----------
Shares repurchased:
Class A .................................... (3,598,482) (2,088,149) (5,507,800) (7,730,984)
Class B .................................... (691,804) (60,958) (171,790) (21,522)
Class D .................................... (1,776,906) (1,186,520) (2,272,493) (2,466,759)
Exchanged into associated Funds:
Class A .................................... (1,794,904) (2,373,469) (6,261,271) (6,549,438)
Class B .................................... (618,019) (22,416) (460,319) (13,343)
Class D .................................... (870,409) (822,351) (934,894) (4,547,765)
---------- ---------- ---------- ----------
Total ........................................ (9,350,524) (6,553,863) (15,608,567) (21,329,811)
---------- ---------- ---------- ----------
Increase (decrease) in shares ................ 15,232,294 35,960,448 (4,702,535) 16,819,537
========== ========== ========== ==========
</TABLE>
- --------------------
* Commencement of operations.
- -----
50
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
9. At April 30, 1997, 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)
----------- ------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
Purchases:
Belgian Francs ................. 2,700,276 75,765 05/05/97 75,659 $ (106)
Portuguese Escudos ............. 41,520,164 239,447 05/05/97 239,102 (345)
Spanish Pesetas ................ 8,744,740 60,031 05/06/97 59,914 (117)
----------
(568)
----------
Sales:
French Francs .................. 26,502,240 4,800,000 05/07/97 4,544,669 255,331
GermanDeutschemarks ............ 4,347,980 2,600,000 05/12/97 2,513,429 86,571
Swiss Francs ................... 2,781,240 1,960,000 05/12/97 1,888,916 71,084
----------
412,986
----------
$ 412,418
==========
GLOBAL GROWTH OPPORTUNITIES FUND
Purchases:
French Francs .................. 5,504,276 945,265 05/05/97 944,211 $ (1,054)
----------
Sales:
French Francs .................. 28,236,500 5,000,000 05/12/97 4,843,892 156,108
German Deutschemarks ........... 8,361,500 5,000,000 05/12/97 4,833,516 166,484
----------
322,592
----------
$ 321,538
==========
GLOBAL SMALLER COMPANIES FUND
Purchases:
Japanese Yen ................... 125,276,950 988,205 05/01/97 986,665 $ (1,540)
British Pounds ................. 27,651 45,057 05/02/97 44,941 (116)
Thai Bahts ..................... 10,277,258 393,614 05/02/97 393,463 (151)
----------
(1,807)
----------
Sales:
Philippine Pesos ............... 8,771,971 332,096 05/05/97 332,096
German Deutschemarks ........... 1,099,456 636,259 05/05/97 635,781 478
French Francs .................. 73,433,290 13,300,000 05/05/97 12,590,147 709,853
German Deutschemarks ........... 21,739,900 13,000,000 05/12/97 12,567,142 432,858
----------
1,143,189
----------
$1,141,382
==========
GLOBAL TECHNOLOGY FUND
Sales:
Japanese Yen ................... 2,350,605,000 18,956,492 07/31/97 18,735,892 $ 220,600
==========
</TABLE>
-----
51
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The Fund's financial highlights are presented below. "Per share operating
performance" data is designed to allow investors to trace the operating
performance of each Class, on a per share basis, from the beginning net asset
value to the ending net asset value, so that investors 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.
"Total return based on net asset value" measures each Class's performance
but assumes that investors purchased Fund shares at net asset value as of the
beginning of the period, invested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value 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
each 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 the commissions were paid. This rate is
provided for the fiscal periods beginning November 1, 1995.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
--------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------
SIX
MONTHS YEAR ENDED OCTOBER 31, 4/7/92*
ENDED --------------------------------------- TO
4/30/97 1996 1995 1994 1993 10/31/92
--------- ----- ---- ----- ---- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $17.17 $16.71 $17.67 $15.98 $11.89 $12.00
------ ------ ------ ------ ------ ------
Net investment income (loss) ................. (0.08) 0.05 0.06 0.04 0.04 0.08
Net realized and unrealized
investment gain (loss) .................... 2.11 1.77 (0.42) 0.91 4.25 (0.23)
Net realized and unrealized gain (loss) on
foreign currency transactions .............. (1.03) (0.44) 0.09 1.08 (0.17) 0.04
------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations 1.00 1.38 (0.27) 2.03 4.12 (0.11)
Dividends paid ............................... -- -- -- (0.01) (0.03) --
Distributions from net gain realized ......... (0.89) (0.92) (0.69) (0.33) -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value ... 0.11 0.46 (0.96) 1.69 4.09 (0.11)
Net asset value, end of period ............... $17.28 $17.17 $16.71 $17.67 $15.98 $11.89
TOTAL RETURN BASED ON NET ASSET VALUE: ....... 5.91% 8.43% (1.24)% 12.85% 34.78% (0.92)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.89%+ 1.81% 1.69% 1.63% 1.75% 1.75%+
Net investment income (loss) to average
net assets ................................. (0.87)%+ 0.28% 0.35% 0.27% 0.27% 1.25%+
Portfolio turnover ........................... 27.78% 55.71% 60.70% 39.59% 46.17% 12.77%
Average commission rate paid ................. $0.0175 $0.0180
Net assets, end of period (000s omitted) ..... $46,640 $50,998 $48,763 $62,922 $33,134 $14,680
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>
- ----------
See footnotes on page 57.
- ------
52
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL FUND (continued)
---------------------------------------------------------------------------------------
CLASS B CLASS D
---------------------------------------------------------------------------------------
SIX SIX YEAR ENDED
MONTHS 4/22/96** MONTHS OCTOBER 31, 9/21/93**
ENDED TO ENDED ------------------------------ TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 10/31/96 4/30/97 1996 1995 1994 10/31/93
-------- ------- --------- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $16.74 $17.38 $16.74 $16.43 $17.53 $15.96 $15.23
------ ------ ------ ------ ------ ------ ------
Net investment loss .......................... (0.14) (0.03) (0.14) (0.08) (0.07) (0.09) (0.03)
Net realized and unrealized
investment gain (loss) ..................... 2.07 (0.54) 2.07 1.75 (0.43) 0.91 1.17
Net realized and unrealized gain (loss) on
foreign currency transactions .............. (1.03) (0.07) (1.03) (0.44) 0.09 1.08 (0.41)
------ ------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations 0.90 (0.64) 0.90 1.23 (0.41) 1.90 0.73
Dividends paid -- -- -- -- -- -- --
Distributions from net gain realized ......... (0.89) -- (0.89) (0.92) (0.69) (0.33) --
------ ------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value ... 0.01 (0.64) 0.01 0.31 (1.10) 1.57 0.73
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ............... $16.75 $16.74 $16.75 $16.74 $16.43 $17.53 $15.96
------ ------ ------ ------ ------ ------ ------
TOTAL RETURN BASED ON NET ASSETVALUE: ........ 5.44% (3.68)% 5.44% 7.62% (2.08)% 12.03% 4.79%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 2.69%+ 2.66%+ 2.69%+ 2.64% 2.50% 2.50% 2.50%+
Net investment loss to average
net assets ................................. (1.67)%+ (0.35)%+ (1.67)%+ (0.47)% (0.44)% (0.53)% (1.86)%+
Portfolio turnover 27.78% 55.71%+++ 27.78% 55.71% 60.70% 39.59% 46.17%++
Average commission rate paid ................. $0.0175 $0.0180+++ $0.0175 $0.0180
Net assets, end of period (000s omitted) ..... $4,686 $2,843 $42,489 $47,917 $31,273 $19,903 $1,648
Without management fee waiver and expense
reimbursement***
Net investment loss per share $(0.09) $(0.11) $(0.11)
Ratios:
Expenses to average net assets 2.62% 2.67% 8.49%+
Net investment loss to
average net assets (0.56)% (0.70)% (7.84)%+
</TABLE>
- ----------
See footnotes on page 57.
-----
53
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
EMERGING MARKETS GROWTH FUND
------------------------------------------------------------------------------
CLASS A CLASS B CLASS D
-------------------------- ----------------------- -----------------------
SIX MONTHS 5/28/96** SIX MONTHS 5/28/96** SIX MONTHS 5/28/96**
ENDED TO ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
------------- ----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $6.78 $7.14 $6.76 $7.14 $6.76 $7.14
------ ------ ------ ------ ------ ------
Net investment loss ........................... (0.05) (0.02) (0.08) (0.04) (0.08) (0.04)
Net realized and unrealized investment
gain (loss) ................................. 1.35 (0.25) 1.34 (0.25) 1.34 (0.25)
Net realized and unrealized loss on foreign
currency transactions ....................... (0.09) (0.09) (0.09) (0.09) (0.09) (0.09)
------ ------ ------ ------ ------ ------
Increase (decrease) from investment
operations .................................. 1.21 (0.36) 1.17 (0.38) 1.17 (0.38)
Dividends paid ................................ -- -- -- -- -- --
Distributions from net gain realized .......... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value .... 1.21 (0.36) 1.17 (0.38) 1.17 (0.38)
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $7.99 $6.78 $7.93 $6.76 $7.93 $6.76
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ........ 17.85% (5.04)% 17.31% (5.32)% 17.31% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................ 2.44%+ 2.22%+ 3.22%+ 3.00%+ 3.22%+ 3.00%+
Net investment loss to average net assets ..... (1.36)%+ (0.69)%+ (2.14)%+ (1.47)%+ (2.14)%+ (1.47)%+
Portfolio turnover ............................ 29.59% 12.24% 29.59% 12.24% 29.59% 12.24%
Average commission rate paid .................. $0.0015 $0.0156 $0.0015 $0.0156 $0.0015 $0.0156
Net assets, end of period (000s omitted) ...... $39,596 $19,864 $22,185 $10,541 $28,245 $13,664
Without management fee waiver and expense
reimbursement***
Net investment loss per share ................. $(0.05) $(0.05) $(0.08) $(0.07) $(0.08) $(0.07)
Ratios:
Expenses to average net assets .............. 2.47%+ 3.02%+ 3.25%+ 3.80%+ 3.25%+ 3.80%+
Net investment loss to average net assets ... (1.39)%+ (1.49)%+ (2.17)%+ (2.27)%+ (2.17)%+ (2.27)%+
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH OPPORTUNITIES FUND
-----------------------------------------------------------------------------------
CLASS A CLASS B CLASS D
--------------- ----------- -------------- ---------- ----------- ----------
SIX MONTHS 11/1/95** SIX MONTHS 4/22/96** SIX MONTHS 11/1/95**
ENDED TO ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
-------------- ----------- -------------- --------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $8.08 $7.14 $8.02 $8.04 $8.02 $7.14
------ ------ ------ ------ ------ ------
Net investment loss ........................... (0.02) (0.03) (0.05) (0.04) (0.05) (0.09)
Net realized and unrealized investment gain ... 0.77 1.12 0.77 0.06 0.77 1.12
Net realized and unrealized loss on foreign
currency transactions ....................... (0.32) (0.15) (0.32) (0.04) (0.32) (0.15)
------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations 0.43 0.94 0.40 (0.02) 0.40 0.88
Dividends paid ................................ -- -- -- -- -- --
Distributions from net gain realized .......... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value .... 0.43 0.94 0.40 (0.02) 0.40 0.88
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $8.51 $8.08 $8.42 $8.02 $8.42 $8.02
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ........ 5.32% 13.17% 4.99% (0.25)% 4.99% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................ 1.78%+ 1.91% 2.54%+ 2.53%+ 2.54%+ 2.67%
Net investment loss to average net assets ..... (0.63)%+ (0.53)% (1.39)%+ (1.13)%+ (1.39)%+ (1.25)%
Portfolio turnover ............................ 33.56% 31.44% 33.56% 31.44%+++ 33.56% 31.44%
Average commission rate paid .................. $0.0323 $0.0160 $0.0323 $0.0160+++ $0.0323 $0.0160
Net assets, end of period (000s omitted) ...... $106,531 $107,509 $14,580 $ 9,257 $59,269 $53,540
- ---------------
See footnotes on page 57.
</TABLE>
- -----
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------
SIX
MONTHS YEAR ENDED OCTOBER 31, 9/9/92*
ENDED ---------------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 1996 1995 1994 1993 10/31/92
--------- ----- ----- ------ ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $15.14 $13.90 $11.93 $9.98 $7.15 $7.14
------ ------ ------ ------ ------ ------
Net investment income (loss) ................. (0.03) -- (0.02) (0.08) (0.02) --
Net realized and unrealized investment gain ... 0.40 2.38 2.24 1.57 3.07 0.02
Net realized and unrealized gain (loss) on
foreign currency transactions ............... (0.66) (0.18) 0.08 0.52 (0.20) (0.01)
------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations (0.29) 2.20 2.30 2.01 2.85 0.01
Dividends paid -- -- -- -- (0.02) --
Distributions from net gain realized .......... (0.73) (0.96) (0.33) (0.06) -- --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value .... (1.02) 1.24 1.97 1.95 2.83 0.01
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $14.12 $15.14 $13.90 $11.93 $9.98 $7.15
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ........ (2.12)% 16.95% 20.10% 20.28% 39.86% 0.14%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................ 1.71%+ 1.75% 1.83% 1.92% 1.98% 1.75%+
Net investment income (loss) to average
net assets .................................. (0.40)%+ 0.01% (0.20)% (0.77)% (0.29)% 0.13%+
Portfolio turnover ............................ 26.56% 45.38% 63.05% 62.47% 60.03% --
Average commission rate paid .................. $0.0179 $0.0211
Net assets, end of period (000s omitted) ...... $386,491 $350,359 $102,479 $46,269 $20,703 $1,562
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 loss to
average net assets ........................ (2.21)% (10.44)%+
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER COMPANIES FUND (CONTINUED)
--------------------------------------------------------------------------------
CLASS B CLASS D
---------------------- -------------------------------------------------------
SIX SIX YEAR ENDED
MONTHS 4/22/96** MONTHS OCTOBER 31, 5/3/93**
ENDED TO ENDED ------------------------------ TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 10/31/96 4/30/97 1996 1995 1994 10/31/93
-------- ------- --------- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $14.72 $14.44 $14.72 $13.63 $11.80 $9.94 $8.52
------ ------ ------ ------ ------ ------ ------
Net investment loss ........................... (0.08) (0.06) (0.08) (0.11) (0.12) (0.16) (0.05)
Net realized and unrealized investment gain ... 0.40 0.33 0.40 2.34 2.20 1.57 1.60
Net realized and unrealized gain (loss) on
foreign currency transactions ............... (0.66) 0.01 (0.66) (0.18) 0.08 0.51 (0.13)
------ ------ ------ ------ ------ ------ ------
Increase (decrease) from investment operations (0.34) 0.28 (0.34 2.05 2.16 1.92 1.42
Dividends paid ................................ -- -- -- -- -- -- --
Distributions from net gain realized .......... (0.73) -- (0.73) (0.96) (0.33) (0.06) --
------ ------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value .... (1.07) 0.28 (1.07) 1.09 1.83 1.86 1.42
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $13.65 $14.72 $13.65 $14.72 $13.63 $11.80 $9.94
====== ====== ====== ====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ........ (2.53)% 1.94% (2.53)% 16.14% 19.11% 19.45% 16.67%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................ 2.47%+ 2.54%+ 2.47%+ 2.51% 2.61% 2.70% 2.75%+
Net investment loss to average
net assets .................................. (1.16)%+ (0.80)%+ (1.16)%+ (0.75)% (0.97)% (1.53)% (1.35)%+
Portfolio turnover ............................ 26.56% 45.38%+++ 26,56% 45.38% 63.05% 62.47% 60.03%++
Average commission rate paid .................. $0.0179 $0.0211+++ $0.0179 $0.0211
Net assets, end of period (000s omitted) ...... $179,667 $103,968 $331,855 $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 loss to average net assets (2.85)%+
</TABLE>
- ---------------
See footnotes on page 57.
-----
55
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
GLOBAL TECHNOLOGY FUND
--------------------------------------------------
CLASS A
--------------------------------------------------
SIX YEAR ENDED
MONTHS OCTOBER 31, 5/23/94**
ENDED ------------------- TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 1996 1995 10/31/94
--------- ----- ----- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................ $11.31 $13.05 $8.37 $7.14
------ ------ ------ ------
Net investment loss ................................. (0.08) (0.08) (0.10) (0.01)
Net realized and unrealized investment gain (loss) .. 1.83 (0.92) 4.90 1.08
Net realized and unrealized gain (loss) on foreign
currency transactions ............................. (0.15) 0.05 (0.05) 0.16
------ ------ ------ ------
Increase (decrease) from investment operations ...... 1.60 (0.95) 4.75 1.23
Dividends paid ...................................... -- (0.02) -- --
Distributions from net gain realized ................ -- (0.77) (0.07) --
------ ------ ------ ------
Net increase (decrease) in net asset value .......... 1.60 (1.74) 4.68 1.23
------ ------ ------ ------
Net asset value, end of period ...................... $12.91 $11.31 $13.05 $8.37
====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSETVALUE: ............... 14.15% (7.33)% 57.31% 17.23%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ...................... 1.69%+ 1.75% 1.91% 2.00%+
Net investment loss to average net assets ........... (1.17)%+ (0.74)% (0.89)% (0.45)%+
Portfolio turnover .................................. 41.24% 73.00% 87.42% 29.20%
Average commission rate paid ........................ $0.0175 $0.0182
Net assets, end of period (000s omitted) ............ $520,090 $499,858 $447,732 $50,719
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>
- --------------------
See footnotes on page 57.
- ----
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL TECHNOLOGY FUND (continued)
-----------------------------------------------------------------------
CLASS B CLASS D
---------------------------------- ---------------------------------
SIX SIX YEAR ENDED
MONTHS 4/22/96** MONTHS OCTOBER 31, 5/23/94**
ENDED TO ENDED ------------------ TO
PER SHARE OPERATING PERFORMANCE: 4/30/97 10/31/96 4/30/97 1996 1995 10/31/94
-------- ------- --------- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $11.09 $11.47 $11.09 $12.89 $8.34 $7.14
------ ------ ------ ------ ------ ------
Net investment loss ......................... (0.12) (0.08) (0.12) (0.17) (0.18) (0.04)
Net realized and unrealized investment
gain (loss) ............................... 1.80 (0.39) 1.80 (0.91) 4.85 1.08
Net realized and unrealized gain
(loss) on foreign currency transactions .. (0.15) 0.09 (0.15) 0.05 (0.05) 0.16
------ ------ ------ ------ ------ ------
Increase (decrease) from investment
operations ................................ 1.53 (0.38) 1.53 (1.03) ` 4.62 1.20
Dividends paid .............................. -- -- -- -- -- --
Distributions from net gain realized ........ -- -- -- (0.77) (0.07) --
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value .. 1.53 (0.38) 1.53 (1.80) 4.55 1.20
------ ------ ------ ------ ------ ------
Net asset value, end of period .............. $12.62 $11.09 $12.62 $11.09 $12.89 $8.34
------ ------ ------ ------ ------ ------
TOTAL RETURN BASED ON NET ASSETVALUE: ....... 13.80% (3.31)% 13.80% (8.07)% 55.95% 16.81%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .............. 2.44%+ 2.51%+ 2.44%+ 2.52% 2.66% 2.75%+
Net investment loss to average net assets ... (1.92)%+ (1.40)%+ (1.92)%+ (1.50)% (1.63)% (1.22)%+
Portfolio turnover .......................... 41.24% 73.00%+++ 41.24% 73.00% 87.42% 29.20%
Average commission rate paid ................ $0.0175 $0.0182+++ $0.0175 $0.0182
Net assets, end of period (000s omitted) .... $32,373 $18,840 $203,746 $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 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.
----
57
<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 April 30, 1997, the related statements of operations for the
six months then ended and of changes in net assets (1) for the six months then
ended, (2) for the year ended October 31, 1996 for the International Fund, the
Global Growth Opportunities Fund, the Global Smaller Companies Fund, and the
Global Technology 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 April
30, 1997, 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 princples used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Henderson Global Fund Series, Inc. as of April 30, 1997, 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
June 6, 1997
- ----
58
<PAGE>
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
Fred E. Brown
DIRECTOR EMERITUS
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
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
John E. Merow
RETIRED CHAIRMAN AND SENIOR 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
RETIRED 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
Richard R. Schmaltz
MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
TRUSTEE EMERITUS, Colby College
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, J. & W. Seligman & Co.
Incorporated
CHAIRMAN AND PRESIDENT,
Seligman Data Corp.
- --------------------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating
Committee
- --------------------------------------------------------------------------------
----
59
<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
- --------------------------------------------------------------------------------
CORRESPONDENCE
- --------------------------------------------------------------------------------
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
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Seligman Financial Services Inc.
an affiliate of
JWS
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.
EQSH3 4/97
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