File No. 33-44186
811-6485
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |X|
Pre-Effective Amendment No. |_|
Post-Effective Amendment No. 25 |X|
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |X|
Amendment No. 27 |X|
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SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
(Exact name of registrant as specified in charter)
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100 PARK AVENUE, NEW YORK, NEW YORK 10017
(Address of principal executive office)
Registrant's Telephone Number: 212-850-1864 or Toll Free: 800-221-2450
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THOMAS G. ROSE, Treasurer, 100 Park Avenue, New York, New York 10017
(Name and address of agent for service)
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It is proposed that this filing will become effective (check appropriate box):
|X| immediately upon filing pursuant to paragraph (b)
|_| on (DATE) pursuant to paragraph (b)
|_| 60 days after filing pursuant to paragraph (a)(1)
|_| on (date) pursuant to paragraph (a)(1)
|_| 75 days after filing pursuant to paragraph (a)(2)
|_| on (date) pursuant to paragraph (a)(2) of rule 485.
If appropriate, check the following box:
|_| This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Registrant has registered an indefinite amount of securities under the
Securities Act of 1933 pursuant to Rule 24f-2(a)(1) and a Rule 24f-2 Notice for
Registrant's most recent fiscal year was filed with the Commission on December
22, 1997.
<PAGE>
<TABLE>
<CAPTION>
File No. 33-44186
811-6485
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
POST-EFFECTIVE AMENDMENT NO. 25
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(A)
FORM N-1A PART A-ITEM NO. LOCATION IN PROSPECTUS
- ------------------------- ----------------------
<S> <C>
1. Cover Page Cover Page
2. Synopsis Summary of Fund Expenses
3. Condensed Financial Information Not applicable
4. General Description of Registrant Cover Page; Organization and Capitalization
5. Management of Fund Management Services
5a. Manager's Discussion of Fund Performance Management Services
6. Capital Stock and Other Securities Organization and Capitalization
7. Purchase of Securities Being Offered Alternative Distribution System; Purchase of Shares; Administration,
Shareholder Services and Distribution Plan
8. Redemption or Repurchase Telephone Transactions; Redemption of Shares; Exchange Privilege
9. Legal Proceedings Not applicable
PART B-ITEM NO. LOCATION IN STATEMENT OF ADDITIONAL INFORMATION
- --------------- -----------------------------------------------
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History General Information; Appendix B; Appendix C
13. Investment Objectives and Policies Investment Objective, Policies and Risks; Investment Limitations
14. Management of the Registrant Management and Expenses
15. Control Persons and Principal Directors and Officers
Holders of Securities
16. Investment Advisory and Other Services Management and Expenses; Distribution Services
17. Brokerage Allocation Portfolio Transactions; Administration, Shareholder Services and Distribution
Plan
18. Capital Stock and Other Securities General Information
19. Purchase, Redemption and Pricing of Purchase and Redemption of Fund Shares; Valuation
Securities Being Offered
20. Tax Status Taxes
21. Underwriters Distribution Services
22. Calculation of Performance Data Performance
23. Financial Statements Financial Statements
</TABLE>
<PAGE>
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
SELIGMAN HENDERSON INTERNATIONAL FUND
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
100 Park Avenue o New York, New York 10017
New York City Telephone: (212) 850-1864
Toll-Free Telephone: (800) 221-2450 all continental United States
For Retirement Plan Information -- Toll-Free Telephone: (800) 445-1777
March 1, 1998
SELIGMAN HENDERSON INTERNATIONAL FUND (the "International Fund") seeks
long-term capital appreciation primarily by making investments in securities of
non-United States issuers.
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND (the "Emerging Markets
Growth Fund") seeks long-term capital appreciation by investing at least 65% of
its assets in equity securities of companies in emerging markets. BECAUSE OF THE
SPECIAL RISKS INVOLVED WITH INVESTING IN SECURITIES OF EMERGING MARKET
COMPANIES, AN INVESTMENT IN THE EMERGING MARKETS GROWTH FUND SHOULD BE
CONSIDERED SPECULATIVE AND NOT APPROPRIATE FOR INDIVIDUALS WHO REQUIRE SAFETY OF
PRINCIPAL OR STABLE INCOME FROM THEIR INVESTMENTS.
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND (the "Global Growth
Opportunities Fund") seeks long-term capital appreciation by investing primarily
in equity securities of companies that have the potential to benefit from global
economic or social trends.
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND (the "Global Smaller
Companies Fund") seeks long-term capital appreciation primarily by making global
investments in companies with small to medium market capitalization.
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND (the "Global Technology Fund")
seeks long-term capital appreciation by making global investments of at least
65% of its assets in securities of companies with business operations in
technology and technology-related industries.
The International Fund, The Emerging Markets Growth Fund, the Global Growth
Opportunities Fund, the Global Smaller Companies Fund and the Global Technology
Fund (each individually, a "Series") are each a separate series of Seligman
Henderson Global Fund Series, Inc. (the "Fund"), an open-end diversified
management investment company. The Fund may offer additional series in the
future. There can be no assurance that a Series will achieve its investment
objective. For a description of each Series' investment objective and policies,
including the risk factors associated with an investment in the Fund, see
"Investment Objectives and Policies."
The Fund is managed by J. & W. Seligman & Co. Incorporated (the "Manager").
Seligman Henderson Co. (the "Subadviser") supervises and directs the Fund's
global investments. The Fund's distributor is Seligman Financial Services, Inc.,
an affiliate of the Manager.
(continued on following page)
This Prospectus sets forth concisely the information a prospective investor
should know about the Fund and the Series before investing. Please read it
carefully before you invest and keep it for future reference. Additional
information, including a Statement of Additional Information, has been filed
with the Securities and Exchange Commission. The Statement of Additional
Information is available upon request without charge by calling or writing the
Fund at the telephone numbers or the address set forth above. The Statement of
Additional Information is dated the same date as this Prospectus and is
incorporated herein by reference in its entirety.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
Each Series offers three classes of shares. Class A shares are sold subject
to an initial sales load of up to 4.75% and an annual service fee currently
charged at a rate of up to .25% of the average daily net asset value of the
Class A shares. Class A Shares purchased in an amount of $1,000,000 or more are
sold without an initial sales load but are subject to a contingent deferred
sales load ("CDSL") of 1% on redemptions within eighteen months of purchase.
Class B shares are sold without an initial sales load but are subject to a CDSL
of 5% on redemptions in the first year after purchase of such shares, declining
to 1% in the sixth year and 0% thereafter, an annual distribution fee of .75%
and an annual service fee of up to .25% of the average daily net asset value of
the Class B shares. 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 load but are
subject to a CDSL of 1% imposed on redemptions within one year of purchase, an
annual distribution fee of up to .75% and an annual service fee of up to .25% of
the average daily net asset value of the Class D shares. Any CDSL payable upon
redemption of shares will be assessed on the lesser of the current net asset
value or the original purchase price of the shares redeemed. No CDSL will be
imposed on shares acquired through the reinvestment of dividends or
distributions received from any class of shares. See "Alternative Distribution
System." Shares of a Series may be purchased through any authorized investment
dealer.
TABLE OF CONTENTS
PAGE
----
Summary of Series Expenses .......................... 3
Financial Highlights ................................ 8
Alternative Distribution System ..................... 14
Investment Objectives and Policies .................. 16
Management Services ................................. 24
Purchase of Shares .................................. 27
Telephone Transactions .............................. 34
Redemption of Shares ................................ 35
Administration, Shareholder Services and
Distribution Plans ............................... 37
PAGE
----
Exchange Privilege .................................. 38
Further Information about Transactions in the
Series ........................................... 40
Dividends and Gain Distributions .................... 40
Federal Income Taxes ................................ 41
Shareholder Information ............................. 43
Advertising a Series' Performance ................... 45
Organization and Capitalization ..................... 45
2
<PAGE>
SUMMARY OF SERIES EXPENSES
The purpose of the following tables is to assist investors in
understanding the various costs and expenses which shareholders of the Fund bear
directly or indirectly. The sales load on Class A shares is a one-time charge
paid at the time of purchase of shares. Reductions in initial sales loads are
available in certain circumstances. Class A shares are not subject to an initial
sales load for purchases of $1,000,000 or more; however, such shares are subject
to a CDSL, a one-time charge, only if the shares are redeemed within eighteen
months of purchase. The CDSLs on Class B and Class D shares are one-time charges
paid only if shares are redeemed within six years or one year of purchase,
respectively. For more information concerning reductions in sales loads and for
a more complete description of the various costs and expenses, see "Purchase of
Shares," "Redemption of Shares" and "Management Services" herein. Each Series'
Administration, Shareholder Services and Distribution Plan to which the caption
"12b-1 Fees" relates is discussed under "Administration, Shareholder Services
and Distribution Plans" herein.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
CLASS A CLASS B CLASS D
------- ------- -------
(INITIAL SALES (DEFERRED SALES (DEFERRED SALES
LOAD ALTERNATIVE) LOAD ALTERNATIVE) LOAD ALTERNATIVE)
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) ................... 4.75% None None
Sales Load on Reinvested Dividends ...................... None None None
Deferred Sales Load (as a percentage of original
purchase price or redemption proceeds,
whichever is lower) ................................... None; 5% in 1st year 1% in first year
except 1% in 4% in 2nd year None thereafter
first 18 months 3% in 3rd and
if initial sales 4th years
load was waived 2% in 5th year
in full due to size 1% in 6th year
of purchase None thereafter
Redemption Fees ......................................... None None None
Exchange Fees ........................................... None None None
ANNUAL SERIES OPERATING EXPENSES FOR FISCAL 1997 CLASS A CLASS B CLASS D
------- ------- -------
(as a percentage of average net assets)
Management Fees ......................................... 1.00% 1.00% 1.00%
12b-1 Fees .............................................. .20 1.00* 1.00*
Other Expenses .......................................... .58 .58 .58
---- ---- ----
Total Series Operating Expenses ......................... 1.78% 2.58% 2.58%
==== ==== ====
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay the following
expenses on a $1,000 investment, assuming
(1) 5% annual return and
(2) redemption at the end of each time period ............. Class A $65 $101 $139 $247
Class B+ 76 110 157 272
Class D 36 80 137 291
An investor would pay the following expenses on the
same investment, assuming no redemption ................... Class B+ $26 $ 80 $137 $272
Class D 26 80 137 291
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE 5%
ANNUAL RETURN USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
- ----------
* Includes an annual distribution fee of .75% and an annual service fee of
.25%. Pursuant to the Rules of the National Association of Securities
Dealers Inc., the aggregate deferred sales loads and distribution fees on
Class B and Class D shares of each Series may not exceed 6.25% of total
gross sales, subject to certain exclusions. The maximum sales charge rule is
applied separately to each class. The 6.25% limitation is imposed on each
Series rather than on a per shareholder basis. Therefore, a long-term Class
B or Class D shareholder of a Series may pay more in total sales loads
(including distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ The expenses shown for the ten-year period reflect the conversion of Class B
shares to Class A shares after 8 years.
3
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES (continued)
EMERGING MARKETS GROWTH FUND
CLASS A CLASS B CLASS D
-------------- -------------- ---------------
(INITIAL SALES (DEFERRED SALES (DEFERRED SALES
LOAD ALTERNATIVE) LOAD ALTERNATIVE) LOAD ALTERNATIVE)
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) ........................ 4.75% None None
Sales Load on Reinvested Dividends ........................... None None None
Deferred Sales Load (as a percentage of original
purchase price or redemption proceeds,
whichever is lower) ........................................ None; 5% in 1st year 1% in first year
except 1% in 4% in 2nd year None thereafter
first 18 months 3% in 3rd and
if initial sales 4th years
load was waived 2% in 5th year
in full due to size 1% in 6th year
of purchase None thereafter
Redemption Fees .............................................. None None None
Exchange Fees ................................................ None None None
ANNUAL SERIES OPERATING EXPENSES FOR FISCAL 1997 CLASS A CLASS B CLASS D
------- ------- -------
(as a percentage of average net assets)
Management Fees .............................................. 1.25% 1.25% 1.25%
12b-1 Fees ................................................... .23 1.00* 1.00*
Other Expenses ............................................... .79 .79 .79
---- ---- ----
Total Series Operating Expenses .............................. 2.27% 3.04% 3.04%
==== ==== ====
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and
(2) redemption at the end of each time period ............. Class A $69 $115 $163 $296
Class B+ 81 124 180 318
Class D 41 94 160 336
An investor would pay the following expenses on the
same investment, assuming no redemption ................... Class B+ $31 $ 94 $160 $318
Class D 31 94 160 336
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE 5%
ANNUAL RETURN USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
- ----------
* Includes an annual distribution fee of .75% and an annual service fee of
.25%. Pursuant to the Rules of the National Association of Securities Dealers
Inc., the aggregate deferred sales loads and distribution fees on Class B and
Class D shares of each Series may not exceed 6.25% of total gross sales,
subject to certain exclusions. The maximum sales charge rule is applied
separately to each class. The 6.25% limitation is imposed on each Series
rather than on a per shareholder basis. Therefore, a long-term Class B or
Class D shareholder of a Series may pay more in total sales loads (including
distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ The expenses shown for the ten-year period reflect the conversion of Class B
shares to Class A shares after 8 years.
4
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES (continued)
GLOBAL GROWTH OPPORTUNITIES FUND
CLASS A CLASS B CLASS D
------- ------- -------
(INITIAL SALES (DEFERRED SALES (DEFERRED SALES
LOAD ALTERNATIVE) LOAD ALTERNATIVE) LOAD ALTERNATIVE)
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) ................... 4.75% None None
Sales Load on Reinvested Dividends ...................... None None None
Deferred Sales Load (as a percentage of original
purchase price or redemption proceeds,
whichever is lower) ................................... None; 5% in 1st year 1% in first year
except 1% in 4% in 2nd year None thereafter
first 18 months 3% in 3rd and
if initial sales 4th years
load was waived 2% in 5th year
in full due to size 1% in 6th year
of purchase None thereafter
Redemption Fees ......................................... None None None
Exchange Fees ........................................... None None None
ANNUAL SERIES OPERATING EXPENSES FOR FISCAL 1997 CLASS A CLASS B CLASS D
------- ------- -------
(as a percentage of average net assets)
Management Fees ......................................... 1.00% 1.00% 1.00%
12b-1 Fees .............................................. .24 1.00* 1.00*
Other Expenses .......................................... .45 .45 .45
---- ---- ----
Total Series Operating Expenses ......................... 1.69% 2.45% 2.45%
==== ==== ====
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and
(2) redemption at the end of each time period ........ Class A $64 $ 98 $135 $238
Class B+ 75 106 151 260
Class D 35 76 131 279
An investor would pay the following expenses on the
same investment, assuming no redemption .............. Class B+ $25 $ 76 $131 $260
Class D 25 76 131 279
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE 5%
ANNUAL RETURN USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
- ----------------
* Includes an annual distribution fee of .75% and an annual service fee of
.25%. Pursuant to the Rules of the National Association of Securities Dealers
Inc., the aggregate deferred sales loads and distribution fees on Class B and
Class D shares of each Series may not exceed 6.25% of total gross sales,
subject to certain exclusions. The maximum sales charge rule is applied
separately to each class. The 6.25% limitation is imposed on each Series
rather than on a per shareholder basis. Therefore, a long-term Class B or
Class D shareholder of a Series may pay more in total sales loads (including
distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ The expenses shown for the ten-year period reflect the conversion of Class B
shares to Class A shares after 8 years.
5
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES (continued)
GLOBAL SMALLER COMPANIES FUND
CLASS A CLASS B CLASS D
------- ------- -------
(INITIAL SALES (DEFERRED SALES (DEFERRED SALES
LOAD ALTERNATIVE) LOAD ALTERNATIVE) LOAD ALTERNATIVE)
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) .................. 4.75% None None
Sales Load on Reinvested Dividends ..................... None None None
Deferred Sales Load (as a percentage of original
purchase price or redemption proceeds,
whichever is lower) .................................. None; 5% in 1st year 1% during
except 1% in 4% in 2nd year first year
first 18 months 3% in 3rd and None thereafter
if initial sales 4th years
load was waived 2% in 5th year
in full due to size 1% in 6th year
of purchase None thereafter
Redemption Fees ........................................ None None None
Exchange Fees .......................................... None None None
ANNUAL SERIES OPERATING EXPENSES FOR FISCAL 1997 CLASS A CLASS B CLASS D
------- ------- -------
(as a percentage of average net assets)
Management Fees ........................................ 1.00% 1.00% 1.00%
12b-1 Fees ............................................. .24 1.00* 1.00*
Other Expenses ......................................... .43 .43 .43
---- ---- ----
Total Series Operating Expenses ........................ 1.67% 2.43% 2.43%
==== ==== ====
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay the following expenses
on a $1,000 investment, assuming
(1) 5% annual return and
(2) redemption at the end of each time period ....... Class A $64 $ 98 $134 $236
Class B+ 75 106 150 258
Class D 35 76 130 277
An investor would pay the following expenses on the
same investment, assuming no redemption Class B+ $25 $ 76 $130 $258
.................................................... Class D 25 76 130 277
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE 5%
ANNUAL RETURN USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
- ----------------
* Includes an annual distribution fee of .75% and an annual service fee of
.25%. Pursuant to the Rules of the National Association of Securities Dealers
Inc., the aggregate deferred sales loads and distribution fees on Class B and
Class D shares of each Series may not exceed 6.25% of total gross sales,
subject to certain exclusions. The maximum sales charge rule is applied
separately to each class. The 6.25% limitation is imposed on each Series
rather than on a per shareholder basis. Therefore, a long-term Class B or
Class D shareholder of a Series may pay more in total sales loads (including
distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ The expenses shown for the ten-year period reflect the conversion of Class B
shares to Class A shares after 8 years.
6
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF SERIES EXPENSES (continued)
GLOBAL TECHNOLOGY FUND
CLASS A CLASS B CLASS D
------- ------- -------
(INITIAL SALES (DEFERRED SALES (DEFERRED SALES
LOAD ALTERNATIVE) LOAD ALTERNATIVE) LOAD ALTERNATIVE)
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) ................. 4.75% None None
Sales Load on Reinvested Dividends .................... None None None
Deferred Sales Load (as a percentage of original
purchase price or redemption proceeds,
whichever is lower) ................................. None; 5% in 1st year 1% during
except 1% in 4% in 2nd year first year
first 18 months 3% in 3rd and None thereafter
if initial sales 4th years
load was waived 2% in 5th year
in full due to size 1% in 6th year
of purchase None thereafter
Redemption Fees ....................................... None None None
Exchange Fees ......................................... None None None
ANNUAL SERIES OPERATING EXPENSES FOR FISCAL 1997 CLASS A CLASS B CLASS D
------- ------- -------
(as a percentage of average net assets)
Management Fees ....................................... 1.00% 1.00% 1.00%
12b-1 Fees ............................................ .25 1.00* 1.00*
Other Expenses ........................................ .42 .42 .42
---- ---- ----
Total Series Operating Expenses ....................... 1.67% 2.42% 2.42%
==== ==== ====
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay the following
expenses on a $1,000 investment, assuming
(1) 5% annual return and
(2) redemption at the end of each time period ........ Class A $64 $ 98 $134 $236
Class B+ 75 105 149 257
Class D 35 75 129 276
An investor would pay the following expenses on the
same investment, assuming no redemption .............. Class B+ $25 $ 75 $129 $257
Class D 25 75 129 276
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN AND THE 5%
ANNUAL RETURN USED IN THIS EXAMPLE IS A HYPOTHETICAL RATE.
- ----------
* Includes an annual distribution fee of .75% and an annual service fee of
.25%. Pursuant to the Rules of the National Association of Securities Dealers
Inc., the aggregate deferred sales loads and distribution fees on Class B and
Class D shares of each Series may not exceed 6.25% of total gross sales,
subject to certain exclusions. The maximum sales charge rule is applied
separately to each class. The 6.25% limitation is imposed on each Series
rather than on a per shareholder basis. Therefore, a long-term Class B or
Class D shareholder of a Series may pay more in total sales loads (including
distribution fees) than the economic equivalent of 6.25% of such
shareholder's investment in such shares.
+ The expenses shown for the ten-year period reflect the conversion of Class B
shares to Class A shares after 8 years.
7
<PAGE>
FINANCIAL HIGHLIGHTS
Each Series' financial highlights for the periods presented below have been
audited by Deloitte & Touche LLP, independent auditors. This information, which
is derived from the financial and accounting records of the Series, should be
read in conjunction with the financial statements and notes contained in the
Fund's 1997 Annual Report, which is incorporated by reference in the Fund's
Statement of Additional Information, copies of which may be obtained from the
Fund at the telephone numbers or address provided on the cover page of this
Prospectus.
"Per share operating performance data" is designed to allow investors to
trace the operating performance, on a per share basis, from the beginning net
asset value to the ending net asset value so that they can understand what
effect the individual items have on their investment assuming it was held
throughout the period.
Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item as disclosed in the financial statements
to their equivalent per share amounts. The total return based on net asset value
measures a Class's performance assuming investors purchased Fund shares at net
asset value as of the beginning of each period, invested dividends and capital
gains paid at net asset value, and then sold their shares at the net asset value
per share on the last day of the period. The total return computations do not
reflect any sales loads investors may incur in purchasing or selling shares of a
Series. The total returns for periods of less than one year are not annualized.
"Average commission rate paid" represents the average commissions paid by
the Series to purchase or sell securities. It is determined by dividing the
total commission dollars paid by the number of shares purchased and sold during
the period for which commissions were paid.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31, 4/7/92*
----------------------------------------------------- TO
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 1994 1993 10/31/92
------ ------ ------ ------ ------ -------
NET ASSET VALUE, BEGINNING OF YEAR ................... $17.17 $16.71 $17.67 $15.98 $11.89 $12.00
------ ------ ------ ------ ------ ------
Net investment income (loss) (0.04) 0.05 0.06 0.04 0.04 0.08
Net realized and unrealized investment gain (loss) ... 2.47 1.77 (0.42) 0.91 4.25 (0.23)
Net realized and unrealized gain (loss) on foreign
currency transactions ................................ (0.79) (0.44) 0.09 1.08 (0.17) 0.04
------ ------ ------ ------ ------ ------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ....... 1.64 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 ........... 0.75 0.46 (0.96) 1.69 4.09 (0.11)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ......................... $17.92 $17.17 $16.71 $17.67 $15.98 $11.89
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ............... 9.83% 8.43% (1.24)% 12.85% 34.78% (0.92)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ....................... 1.78% 1.81% 1.69% 1.63% 1.75% 1.75%+
Net investment income (loss) to average net assets ... (0.23)% 0.28% 0.35% 0.27% 0.27% 1.25%+
Portfolio turnover ................................... 83.11% 55.71% 60.70% 39.59% 46.17% 12.77%
Average commission rate paid ......................... $0.0201 $0.0180
NET ASSETS, END OF YEAR (000s omitted) ............... $46,107 $50,998 $48,763 $62,922 $33,134 $14,680
Without expense reimbursement and/or
management fee waiver:**
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>
- ----------------
* Commencement of investment operations.
** The Manager and Subadviser, at their discretion, waived a portion of their
fees and, in some cases, the Subadviser reimbursed certain expenses for the
periods presented.
+ Annualized.
The data provided above for the International Fund's Class A shares
reflects historical information and therefore has not been adjusted to reflect,
for the period prior to its implementation on September 21, 1993, the effect of
the Administration, Shareholder Services and Distribution Plan.
8
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (continued)
INTERNATIONAL FUND (continued)
CLASS B CLASS D
------------------- ------------------------------------------------------
YEAR 4/22/96* YEAR ENDED OCTOBER 31, 9/21/93*
ENDED TO ----------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 1997 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 ........................ (0.18) (0.03) (0.18) (0.08) (0.07) (0.09) (0.03)
Net realized and unrealized
investment gain (loss) ................... 2.42 (0.54) 2.42 1.75 (0.43) 0.91 1.17
Net realized and unrealized
gain (loss) on foreign
currency transactions .................... (0.79) (0.07) (0.79) (0.44) 0.09 1.08 (0.41)
------ ------ ------ ------ ------ ------ ------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS ................................. 1.45 (0.64) 1.45 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 ............................ 0.56 (0.64) 0.56 0.31 (1.10) 1.57 0.73
------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ............. $17.30 $16.74 $17.30 $16.74 $16.43 $17.53 $15.96
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE:...... 8.90% (3.68)% 8.90% 7.62% (2.08)% 12.03% 4.79%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............. 2.58% 2.66%+ 2.58% 2.64% 2.50% 2.50% 2.50%+
Net investment loss to average net assets .. (1.03)% (0.35)%+ (1.03)% (0.47)% (0.44)% (0.53)% (1.86)%+
Portfolio turnover ......................... 83.11% 55.71%+++ 83.11% 55.71% 60.70% 39.59% 46.17%++
Average commission rate paid ............... $0.0201 $0.0180+++ $0.0201 $0.0180
NET ASSETS, END OF PERIOD (000s omitted) ... $6,350 $2,843 $40,977 $47,917 $31,273 $19,903 $1,648
Without expense reimbursement and/or
management fee waiver:**
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>
- ----------
* 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.
9
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
EMERGING MARKETS GROWTH FUND
CLASS A
-------------------
YEAR 5/28/96*
ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
------- -------
NET ASSET VALUE, BEGINNING OF PERIOD .................. $6.78 $7.14
----- -----
Net investment loss (0.05) (0.02)
Net realized and unrealized investment gain (loss) .... 1.05 (0.25)
Net realized and unrealized loss on foreign
currency transactions ................................. (0.44) (0.09)
----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ........ 0.56 (0.36)
Dividends paid ........................................ -- --
Distributions from net gain realized .................. -- --
----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ............ 0.56 (0.36)
----- -----
NET ASSET VALUE, END OF PERIOD ........................ $7.34 $6.78
===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ................ 8.26% (5.04)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ........................ 2.27% 2.22%+
Net investment loss to average net assets ............. (0.56)% (0.69)%+
Portfolio turnover .................................... 84.09% 12.24%
Average commission rate paid .......................... $0.0013 $0.0156
NET ASSETS, END OF PERIOD (000s omitted) .............. $44,061 $19,864
Without expense reimbursement and/or
management fee waiver:**
Net investment loss per share ....................... $(0.05)
Ratios:
Expenses to average net assets ...................... 3.02%+
Net investment loss to average net assets ........... (1.49)%+
<TABLE>
<CAPTION>
CLASS B CLASS D
--------------------- -------------------
YEAR 5/28/96* YEAR 5/28/96*
ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 10/31/97 10/31/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................... $6.76 $7.14 $6.76 $7.14
----- ----- ----- -----
Net investment loss .................................... (0.11) (0.04) (0.11) (0.04)
Net realized and unrealized investment gain (loss) ..... 1.06 (0.25) 1.06 (0.25)
Net realized and unrealized loss on foreign
currency transactions .................................. (0.44) (0.09) (0.44) (0.09)
----- ----- ----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ......... 0.51 (0.38) 0.51 (0.38)
Dividends paid ......................................... -- -- -- --
Distributions from net gain realized ................... -- -- -- --
----- ----- ----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ............. 0.51 (0.38) 0.51 (0.38)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ......................... $7.27 $6.76 $7.27 $6.76
===== ===== ===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ................. 7.54% (5.32)% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......................... 3.04% 3.00%+ 3.04% 3.00%+
Net investment loss to average net assets .............. (1.33)% (1.47)%+ (1.33)% (1.47)%+
Portfolio turnover ..................................... 84.09% 12.24% 84.09% 12.24%
Average commission rate paid ........................... $0.0013 $0.0156 $0.0013 $0.0156
NET ASSETS, END OF PERIOD (000s omitted) ............... $28,819 $10,541 $31,259 $13,664
Without expense reimbursement and/or
management fee waiver:**
Net investment loss per share ........................ $(0.07) $(0.07)
Ratios:
Expenses to average net assets ....................... 3.80%+ 3.80%+
Net investment loss to average net assets ............ (2.27)%+ (2.27)%+
</TABLE>
- ----------
* Commencement of operations.
** The Manager and Subadviser, at their discretion, waived a portion of their
fees and, in some cases, the Subadviser reimbursed certain expenses for the
periods presented.
+ Annualized.
10
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
GLOBAL GROWTH OPPORTUNITIES FUND
CLASS A
-----------------------
YEAR 11/1/95*
ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
-------- --------
NET ASSET VALUE, BEGINNING OF PERIOD ................. $8.08 $7.14
------ ------
Net investment loss .................................. (0.05) (0.03)
Net realized and unrealized investment gain .......... 1.47 1.12
Net realized and unrealized loss on foreign
currency transactions ................................ (0.30) (0.15)
------ ------
INCREASE FROM INVESTMENT OPERATIONS .................. 1.12 0.94
Dividends paid ....................................... -- --
Distributions from net gain realized ................. -- --
------ ------
NET INCREASE IN NET ASSET VALUE ...................... 1.12 0.94
------ ------
NET ASSET VALUE, END OF PERIOD ....................... $9.20 $8.08
====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ............... 13.86% 13.17%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ....................... 1.69% 1.91%
Net investment loss to average net assets ............ (0.59)% (0.53)%
Portfolio turnover ................................... 79.32% 31.44%
Average commission rate paid ......................... $0.0251 $0.0160
NET ASSETS, END OF PERIOD (000s omitted) ............. $109,060 $107,509
<TABLE>
<CAPTION>
CLASS B CLASS D
---------------------- ----------------------
YEAR 4/22/96* YEAR 11/1/95*
ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 10/31/97 10/31/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ................. $8.02 $8.04 $8.02 $7.14
------ ------- ------ ------
Net investment loss .................................. (0.12) (0.04) (0.12) (0.09)
Net realized and unrealized investment gain .......... 1.46 0.06 1.46 1.12
Net realized and unrealized loss on foreign
currency transactions ................................ (0.30) (0.04) (0.30) (0.15)
------ ------- ------ ------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ....... 1.04 (0.02) 1.04 0.88
Dividends paid ....................................... -- -- -- --
Distributions from net gain realized ................. -- -- -- --
------ ------- ------ ------
NET INCREASE (DECREASE) IN NET ASSET VALUE ........... 1.04 (0.02) 1.04 0.88
------ ------- ------ ------
NET ASSET VALUE, END OF PERIOD ....................... $9.06 $8.02 $9.06 $8.02
====== ======= ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ............... 12.97% (0.25)% 12.97% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ....................... 2.45% 2.53%+ 2.45% 2.67%
Net investment loss to average net assets ............ (1.35)% (1.13)%+ (1.35)% (1.25)%
Portfolio turnover ................................... 79.32% 31.44%++ 79.32% 31.44%
Average commission rate paid ......................... $0.0251 $0.0160++ $0.0251 $0.0160
NET ASSETS, END OF PERIOD (000s omitted) ............. $19,311 $ 9,257 $64,300 $53,540
</TABLE>
- ----------------
* Commencement of operations.
+ Annualized.
++ For the year ended October 31, 1996.
11
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (continued)
GLOBAL SMALLER COMPANIES FUND
CLASS A
-----------------------------------------------------------------
YEAR ENDED OCTOBER 31, 9/9/92*
------------------------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 1994 1993 10/31/92
------ ------ ------ ------ ----- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ................... $15.14 $13.90 $11.93 $ 9.98 $7.15 $7.14
------ ------ ------ ------ ----- -----
Net investment loss -- -- (0.02) (0.08) (0.02) --
Net realized and unrealized investment gain .......... 1.61 2.38 2.24 1.57 3.07 0.02
Net realized and unrealized gain (loss) on foreign
currency transactions ................................ (0.40) (0.18) 0.08 0.52 (0.20) (0.01)
------ ------ ------ ------ ----- -----
INCREASE FROM INVESTMENT OPERATIONS .................. 1.21 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 IN NET ASSET VALUE ...................... 0.48 1.24 1.97 1.95 2.83 0.01
------ ------ ------ ------ ----- -----
NET ASSET VALUE, END OF YEAR ......................... $15.62 $15.14 $13.90 $11.93 $9.98 $7.15
====== ====== ====== ====== ===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ............... 8.28% 16.95% 20.10% 20.28% 39.86% 0.14%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ....................... 1.67% 1.75% 1.83% 1.92% 1.98% 1.75%+
Net investment income (loss) to average net assets ... 0.02% 0.01% (0.20)% (0.77)% (0.29)% 0.13%+
Portfolio turnover ................................... 57.24% 45.38% 63.05% 62.47% 60.03% --
Average commission rate paid ......................... $0.0166 $0.0211
NET ASSETS, END OF YEAR (000s omitted) ............... $434,397 $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>
CLASS B CLASS D
-------------------- -----------------------------------------------------
YEAR 4/22/96* YEAR ENDED OCTOBER 31, 5/3/93*
ENDED TO ----------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 1997 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 ...................... (0.11) (0.06) (0.11) (0.11) (0.12) (0.16) (0.05)
Net realized and unrealized
investment gain ........................ 1.56 0.33 1.57 2.34 2.20 1.57 1.60
Net realized and unrealized
gain (loss) on foreign
currency transactions .................. (0.40) 0.01 (0.40) (0.18) 0.08 0.51 (0.13)
------ ------ ------ ------ ------ ------ ------
INCREASE FROM INVESTMENT OPERATIONS ...... 1.05 0.28 1.06 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 IN NET ASSET VALUE .......... 0.32 0.28 0.33 1.09 1.83 1.86 1.42
------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ........... $15.04 $14.72 $15.05 $14.72 $13.63 $11.80 $9.94
====== ====== ====== ====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ... 7.39% 1.94% 7.47% 16.14% 19.11% 19.45% 16.67%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ........... 2.43% 2.54%+ 2.43% 2.51% 2.61% 2.70% 2.75%+
Net investment loss to average net assets. (0.74)% (0.80)%+ (0.74)% (0.75)% (0.97)% (1.53)% (1.35)%+
Portfolio turnover ....................... 57.24% 45.38%+++ 57.24% 45.38% 63.05% 62.47% 60.03%++
Average commission rate paid ............. $0.0166 $0.0211+++ $0.0166 $0.0211
NET ASSETS, END OF PERIOD (000s omitted) . $247,600 $103,968 $370,625 $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>
- ----------
* 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.
12
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (continued)
GLOBAL TECHNOLOGY FUND
CLASS A
-------------------------------------------
YEAR ENDED OCTOBER 31, 5/23/94*
------------------------------ TO
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 10/31/94
------ ------ ------ --------
NET ASSET VALUE, BEGINNING OF PERIOD ............................. $11.31 $13.05 $ 8.37 $7.14
------ ------ ------ -----
Net investment loss .............................................. (0.16) (0.08) (0.10) (0.01)
Net realized and unrealized investment gain (loss) ............... 4.06 (0.92) 4.90 1.08
Net realized and unrealized
gain (loss) on foreign currency transactions .................... (0.07) 0.05 (0.05) 0.16
------ ------ ------ -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ................... 3.83 (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 ....................... 3.83 (1.74) 4.68 1.23
------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD ................................... $15.14 $11.31 $13.05 $8.37
====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSET VALUE: ........................... 33.86% (7.33)% 57.31% 17.23%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................................... 1.67% 1.75% 1.91% 2.00%+
Net investment loss to average net assets ........................ (1.10)% (0.74)% (0.89)% (0.45)%+
Portfolio turnover ............................................... 94.06% 73.00% 87.42% 29.20%
Average commission rate paid ..................................... $0.0226 $0.0182
NET ASSETS, END OF PERIOD (000s omitted) ......................... $583,257 $499,858 $447,732 $50,719
Without expense reimbursement and/or management fee waiver:**
Net investment loss per share .................................. $(0.02)
Ratios:
Expenses to average net assets ................................. 2.18%+
Net investment loss to average net assets ...................... (0.63)%+
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS D
------------------- -------------------------------------------
YEAR 4/22/96* YEAR ENDED OCTOBER 31, 5/23/94*
ENDED TO ----------------------------- TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 1997 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 .................................. (0.26) (0.08) (0.26) (0.17) (0.18) (0.04)
Net realized and unrealized investment gain (loss) ... 3.97 (0.39) 3.97 (0.91) 4.85 1.08
Net realized and unrealized gain (loss) on foreign
currency transactions .............................. (0.07) 0.09 (0.07) 0.05 (0.05) 0.16
------ ------ ------ ------ ------ ------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ....... 3.64 (0.38) 3.64 (1.03) 4.62 1.20
Dividends paid ....................................... -- -- -- -- -- --
Distributions from net gain realized ................. -- -- -- (0.77) (0.07) --
------ ------ ------ ------ ------ ------
NET INCREASE (DECREASE) IN NET ASSET VALUE ........... 3.64 (0.38) 3.64 (1.80) 4.55 1.20
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ....................... $14.73 $11.09 $14.73 $11.09 $12.89 $8.34
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ............... 32.82% (3.31)% 32.82% (8.07)% 55.95% 16.81%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ....................... 2.42% 2.51%+ 2.42% 2.52% 2.66% 2.75%+
Net investment loss to average net assets ............ (1.85)% (1.40)%+ (1.85)% (1.50)% (1.63)% (1.22)%+
Portfolio turnover ................................... 94.06% 73.00%++ 94.06% 73.00% 87.42% 29.20%
Average commission rate paid ......................... $0.0226 $0.0182++ $0.0226 $0.0182
NET ASSETS, END OF PERIOD (000s omitted) ............. $53,046 $18,840 $232,882 $197,412 $161,622 $6,499
Without expense reimbursement and/or
management fee waiver:**
Net investment loss per share ...................... $(0.06)
Ratios:
Expenses to average net assets ..................... 3.36%+
Net investment loss to average net assets .......... (1.83)%+
</TABLE>
- ----------
* Commencement of operations.
** The Manager and Subadviser, at their discretion, waived a portion of their
fees and, in some cases, the Subadviser reimbursed certain expenses for the
periods presented.
+ Annualized.
++ For the year ended October 31, 1996.
13
<PAGE>
ALTERNATIVE DISTRIBUTION SYSTEM
Each Series offers three classes of shares. Class A shares are sold to
investors who have concluded that they would prefer to pay an initial sales load
and have the benefit of lower continuing fees. Class B shares are sold to
investors choosing to pay no initial sales load, a higher distribution fee and a
CDSL with respect to redemptions within six years of purchase and who desire
shares to convert automatically to Class A shares after eight years. Class D
shares are sold to investors choosing to pay no initial sales load, a higher
distribution fee and, with respect to redemptions within one year of purchase, a
CDSL. The Alternative Distribution System allows investors to choose the method
of purchasing shares that is most beneficial in light of the amount of the
purchase, the length of time the shares are expected to be held and other
relevant circumstances. Investors should determine whether under their
particular circumstances it is more advantageous to incur an initial sales load
and be subject to lower ongoing fees, as discussed below, or to have the entire
initial purchase price invested in a Series with the investment thereafter being
subject to higher ongoing fees and either a CDSL for a six-year period with
automatic conversion to Class A shares after eight years or a CDSL for a
one-year period with no automatic conversion to Class A shares.
Investors who expect to maintain their investment for an extended period of
time might choose to purchase Class A shares because over time the accumulated
continuing distribution fees of Class B and Class D shares may exceed the
initial sales load and lower distribution fee of Class A shares. This
consideration must be weighed against the fact that the amount invested in a
Series will be reduced by the initial sales load on Class A shares deducted at
the time of purchase. Furthermore, the higher distribution fees on Class B and
Class D shares will be offset to the extent any return is realized on the
additional funds initially invested therein that would have been equal to the
amount of the initial sales load on Class A shares.
Investors who qualify for reduced initial sales loads, as described under
"Purchase of Shares" below, might also choose to purchase Class A Shares because
the sales load deducted at the time of purchase would be less or waived in full.
However, investors should consider the effect of the 1% CDSL imposed on shares
on which the initial sales load was waived in full because the amount of Class A
shares purchased reached $1,000,000. In addition, Class B shares will be
converted automatically to Class A shares after a period of approximately eight
years, and thereafter investors will be subject to lower ongoing fees. Shares
purchased through reinvestment of dividends and distributions on Class B shares
also will convert automatically to Class A shares along with the underlying
shares on which they were earned.
Alternatively, some investors might choose to have all of their funds
invested initially in Class B or Class D shares, although remaining subject to a
higher continuing distribution fee and, for a six-year or one-year period, a
CDSL as described below. For example, an investor who does not qualify for
reduced sales loads would have to hold Class A shares for more than 6.33 years
for the Class B or Class D distribution fee to exceed the initial sales load
plus the distribution fee on Class A shares. This example does not take into
account the time value of money, which further reduces the impact of the Class B
and Class D shares' 1% distribution fee, fluctuations in net asset value or the
effect of the return on the investment over this period of time.
Investors should bear in mind that total asset based sales charges (i.e.,
the higher continuing distribution fee plus the CDSL) on Class B shares that are
redeemed may exceed the total asset based sales charges that would be payable on
the same amount of Class A or Class D shares, particularly if the Class B shares
are redeemed shortly after purchase or if the investor qualifies for a reduced
sales load on the Class A shares.
Investors should understand that the purpose and function of the initial
sales load (and deferred sales load, when applicable) with respect to Class A
shares is the same as those of the deferred sales loads and higher distribution
fees with respect to Class B and Class D shares in that the sales loads and fees
applicable
14
<PAGE>
to each class provide for the financing of the distribution of the shares of the
Series.
Class B and Class D shares are subject to the same ongoing distribution
fees but Class D shares are subject to a CDSL for a shorter period of time (one
year as opposed to six years) than Class B shares. However, unlike Class D
shares, Class B shares automatically convert to Class A shares, which are
subject to lower ongoing distribution fees.
The three classes of shares of a 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,
potentially, certain other class expenses and has exclusive voting rights with
respect to any matter on which a separate vote of any class is required by the
Investment Company Act of 1940, as amended (the "1940 Act"), or Maryland law.
The net income attributable to each class and dividends payable on the shares of
each class will be reduced by the amount of distribution and other expenses of
each class. Class B and Class D shares bear higher distribution fees, which will
cause the Class B and Class D shares to pay lower dividends than the Class A
shares. The three classes also have separate exchange privileges.
The Directors of the Fund believe that no conflict of interest currently
exists between the Class A, Class B and Class D shares of each Series. On an
ongoing basis, the Directors, in the exercise of their fiduciary duties under
the 1940 Act and Maryland law, will seek to ensure that no such conflict arises.
For this purpose, the Directors will monitor the Fund for the existence of any
material conflict among the classes and will take such action as is reasonably
necessary to eliminate any such conflicts that may develop.
DIFFERENCES BETWEEN CLASSES. The primary differences between Class A, Class
B and Class D shares are their sales load structures and ongoing expenses as set
forth below. The primary differences between Class B and Class D shares are that
Class D shares are subject to a shorter CDSL period and a lower CDSL rate but
Class B shares automatically convert to Class A shares after eight years,
resulting in a reduction in ongoing fees. Investors in Class B shares should
take into account whether they intend to redeem their shares within the CDSL
period and, if not, whether they intend to remain invested until the end of the
conversion period and thereby take advantage of the reduction in ongoing fees
resulting from the conversion into Class A shares. Other investors, however, may
elect to purchase Class D shares if they determine that it is advantageous to
have all their assets invested initially and they are uncertain as to the length
of time they intend to hold their assets in one of the Series or another
Seligman Mutual Fund for which the exchange privilege is available. Although
Class D shareholders are subject to a shorter CDSL period at a lower rate, they
forgo the Class B automatic conversion feature, making their investment subject
to higher distribution fees for an indefinite period of time. Each class has
advantages and disadvantages for different investors, and investors should
choose the class that best suits their circumstances and their objectives.
<TABLE>
<CAPTION>
ANNUAL
12B-1 FEES
INITIAL (AS A % OF AVERAGE OTHER
SALES LOAD DAILY NET ASSETS) INFORMATION
---------- ---------------- ----------
<S> <C> <C> <C>
CLASS A Maximum initial Service fee of Initial sales load
sales load of .25%. waived or
4.75% of the reduced for
public offering certain
price. purchases. CDSL
of 1% on redemptions within 18
months of purchase on shares on
which initial sales load was waived
in full due to the size of the
purchase.
CLASS B None Service fee of CDSL of:
.25%; 5% in 1st year
Distribution fee 4% in 2nd year
of .75% until 3% in 3rd and 4th
conversion* years
2% in 5th year 1% in 6th year 0%
after 6th year.
CLASS D None Service fee of CDSL of 1% on
.25%; Distribu- redemptions
tion fee of within one year
.75%. of purchase.
</TABLE>
- ----------
* Conversion occurs at the end of the month which precedes the 8th anniversary
of the purchase date. If Class B shares of a Series are exchanged for Class B
shares of one of the other Seligman Mutual Funds (identified under "Exchange
Privilege") the conversion period applicable to the Class B shares acquired in
the exchange will apply, and the holding period of the shares exchanged will
be tacked onto the holding period of the shares acquired.
15
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
The International Fund, the Emerging Markets Growth Fund, the Global Growth
Opportunities Fund, the Global Smaller Companies Fund and the Global Technology
Fund are each a separate series of Seligman Henderson Global Fund Series, Inc.,
an open-end diversified management investment company incorporated under the
laws of the state of Maryland on November 22, 1991.
SELIGMAN HENDERSON INTERNATIONAL FUND. The investment objective of the
International Fund is long-term capital appreciation. The Series seeks to
achieve this objective primarily by making investments in securities of
non-United States issuers. The investment objective is a fundamental policy and
may not be changed without shareholder approval. There can be no assurance that
the Series will achieve its investment objective.
The International Fund may invest in securities of issuers domiciled in any
country. Under normal conditions investments will be made in three principal
regions: The United Kingdom/Continental Europe, the Pacific Basin and Latin
America. Continental European countries include Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands,
Norway, Portugal, Spain, Sweden and Switzerland. Pacific Basin countries include
Australia, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand,
Pakistan, the People's Republic of China, the Philippines, Singapore, Taiwan and
Thailand. Latin American countries include Argentina, Brazil, Chile, Mexico and
Venezuela.
Under normal market conditions it is anticipated that at least five
countries will be represented in the International Fund's portfolio. Investments
will not normally be made in securities of issuers organized in the United
States and Canada, although under exceptional conditions a large portion of the
Series' assets may temporarily be invested in the United States.
Securities may be included in the International Fund's portfolio without
regard to minimum capitalization of their issuers. The Series will generally
purchase securities of medium-to large-sized companies in the principal
international markets, although it may purchase securities of companies that
have a lower market capitalization in smaller regional markets.
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND. The investment objective
of the Emerging Markets Growth Fund is long-term capital appreciation. The
Series seeks to achieve its objective by investing at least 65% of its assets in
equity securities of companies in emerging markets. The investment objective is
a fundamental policy and may not be changed without shareholder approval. There
can be no assurance that the Series will achieve its objective.
The Emerging Markets Growth Fund may invest in securities of issuers
domiciled in any country. Under normal conditions, the Series will maintain
investments in at least three emerging countries. The Series seeks to benefit
from policies of economic development that are being adopted by many developing
or emerging countries. These policies include domestic price reform, reducing
internal budget deficits, privatizations, encouraging foreign investments and
developing capital markets. Countries adopting such policies have normally
experienced an acceleration of economic growth that, in many cases, has resulted
in higher returns in the longer term than those of more developed countries.
Examples of countries successfully adopting policies of economic development
include South Korea, Taiwan, Malaysia, Thailand, Chile, Poland and Argentina.
Examples of countries in the course of adopting policies of economic development
include China, India, Russia and Brazil.
An emerging market is a market in any country that the International Bank
for Reconstruction and Development (the "World Bank") generally considers to be
an emerging country. There are currently more than 150 countries which are
considered to be emerging countries, approximately 60 of which currently have
stock markets. These countries generally include every nation in the world
except the United States, Canada, Japan, Australia, New Zealand and most nations
located in Western Europe such as Austria, Belgium, Denmark, Finland, France,
Germany, Great Britain, Ireland, Italy, the Netherlands, Norway, Spain, Sweden
and Switzerland. INVESTING IN EMERGING MARKETS
16
<PAGE>
ENTAILS A SUBSTANTIAL DEGREE OF RISK, AND, AS SUCH, AN INVESTMENT IN THE
EMERGING MARKETS GROWTH FUND SHOULD BE CONSIDERED SPECULATIVE AND NOT
APPROPRIATE FOR INDIVIDUALS WHO REQUIRE SAFETY OF PRINCIPAL OR STABLE INCOME
FROM THEIR INVESTMENTS. ADDITIONALLY, AN INVESTMENT IN THE EMERGING MARKETS
GROWTH FUND SHOULD NOT BE CONSIDERED TO BE A COMPLETE INVESTMENT PROGRAM. SEE
"EMERGING MARKET INVESTMENT RISK FACTORS."
Currently, investing in many emerging markets is not feasible or may
involve unacceptable risks. The Emerging Markets Growth Fund will focus its
investments on those emerging countries in which it believes the economies are
developing strongly and in which markets are becoming more sophisticated. The
Series intends to invest primarily in markets in some or all of the following
emerging countries: Argentina, Brazil, Bulgaria, Chile, China, Colombia,
Croatia, Czech Republic, Ghana, Greece, Hungary, India, Indonesia, Jordan,
Kenya, Malaysia, Mexico, Morocco, Namibia, Nigeria, Pakistan, Peru, the
Philippines, Poland, Portugal, Russia, Slovakia, South Africa, South Korea, Sri
Lanka, Taiwan, Thailand, Turkey, Uruguay, Venezuela and Zimbabwe. As more
markets develop, the Emerging Markets Growth Fund expects to expand and further
diversify its investments.
A company in an emerging market is defined as a company: (i) the principal
securities trading market for the equity securities of which is an emerging
market; (ii) that (alone or on a consolidated basis) derives 50% or more of its
total revenue from either goods produced, sales made or services performed in
emerging countries; or (iii) organized under the laws of, and with a principal
office in, an emerging country.
The Subadviser uses a top-down method in selecting investments on behalf of
the Emerging Markets Growth Fund, i.e., first identifying geographic regions and
individual countries and then identifying specific securities within these
areas. For allocating investments among geographic regions and individual
countries, the Subadviser will consider for each country such factors as current
and forecast economic growth; valuation, size and potential of securities
markets; expected levels of inflation; the balance of payments and external
reserves; the outlook for the currency and interest rates; and financial, social
and political conditions influencing investment opportunities. The Subadviser
will select securities for inclusion in the Series' portfolio based on, among
other factors, evaluation of a company's growth prospects, quality of
management, liquidity and the relative valuation of the securities in the
markets that the Subadviser has selected for investment.
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND. The investment
objective of the Global Growth Opportunities Fund is long-term capital
appreciation. The Series seeks to achieve its objective by investing primarily
in equity securities of companies that have the potential to benefit from global
economic or social trends. The Subadviser believes that such trends are
reshaping the world as it moves towards the new millennium. The trends focused
on include global economic liberalization and the flow of capital through trade
and investment; the globalization of the world's economy; the expansion of
technology as an increasingly important influence on society; the increased
awareness of the importance of protecting the environment; and the increase in
life expectancy leading to changes in consumer demographics and a greater need
for healthcare, security and leisure. The investment objective is a fundamental
policy and may not be changed without shareholder approval. There can be no
assurance that the Series will achieve its investment objective.
The Global Growth Opportunities Fund may invest in securities of issuers
domiciled in any country. Under normal conditions investments will be made in
four principal regions: The United Kingdom/Continental Europe, the Pacific
Basin, Latin America (all of which are defined above under "Seligman Henderson
International Fund") and North America. North America includes the United States
and Canada. Under normal market conditions, the Series' assets will be invested
in securities of issuers located in at least three different countries, one of
which may be the United States.
The Subadviser will select securities for inclusion in the Global Growth
Opportunities Fund's portfolio based on, among other factors, evaluation of a
company's growth prospects, quality of management, liquidity and the relative
valuation of the securities in
17
<PAGE>
the markets that the Subadviser has selected for investment. Securities may be
included in the Series' portfolio without regard to the minimum capitalization
of the issuer.
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND. The investment objective
of the Global Smaller Companies Fund is long-term capital appreciation. The
Series seeks to achieve this objective primarily by making global investments in
securities of emerging companies, i.e., companies with small to medium market
capitalization. The investment objective is a fundamental policy and may not be
changed without shareholder approval. There can be no assurance that the Series
will achieve its investment objective.
The Global Smaller Companies Fund may invest in securities of issuers
domiciled in any country. Under normal conditions investments will be made in
four principal regions: the United Kingdom/Continental Europe, the Pacific
Basin, Latin America (all of which are described above under "Seligman Henderson
International Fund") and North America (which is described above under "Seligman
Henderson Global Growth Opportunities Fund"). Under normal market conditions,
the Series' assets will be invested in securities of issuers located in at least
three different countries, one of which may be the United States.
Under normal market conditions, the Global Smaller Companies Fund will
invest at least 65% of its assets in securities of small- to medium-sized
companies with market capitalizations up to $1 billion, although up to 35% of
its total assets may be invested in securities of companies with market
capitalizations over $1 billion. The Board of Directors of the Fund will
periodically review and revise the capitalization requirements of smaller
companies as circumstances may require. The Global Smaller Companies Fund
anticipates that it will continue to hold the securities of smaller companies as
those companies grow or expand so long as those investments continue to offer
prospects of long-term growth. In extraordinary circumstances, the Series may
invest for temporary defensive purposes, without limit, in large capitalization
companies or increase its investments in debt securities.
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND. The investment objective of the
Global Technology Fund is long-term capital appreciation. The Series seeks to
achieve its objective by making global investments of at least 65% of its assets
in securities of companies with business operations in technology and
technology-related industries. The investment objective is a fundamental policy
and may not be changed without shareholder approval. There can be no assurance
that the Series will achieve its investment objective.
The Global Technology Fund may invest in securities of issuers domiciled in
any country. Under normal conditions investments will be made in four principal
regions: the United Kingdom/Continental Europe, the Pacific Basin, Latin America
(all of which are defined above under "Seligman Henderson International Fund")
and North America (which is described above under "Seligman Henderson Global
Growth Opportunities Fund"). Under normal market conditions, the Series' assets
will be invested in securities of issuers located in at least three different
countries, one of which may be the United States.
The use of existing and developing technologies is an increasingly
important component of human societies in every part of the civilized world. The
Global Technology Fund defines technology as the use of science to create new
products and services. As such, the industry comprises not only information
technology and communications but also medical, environmental and
bio-technology. The Series expects to invest in a broad range of technologies.
The technology market is global in its scope and has exhibited and continues to
demonstrate rapid growth both through increasing demand for existing products
and services and the broadening of the technology market. Penetration rates
remain low while emerging technologies such as multimedia and genetic
engineering are opening up completely new markets. The application of new
technology to traditional industries is, in many cases, revolutionizing both
manufacturing and distribution industries. Nonetheless, older technologies such
as photography and print also are typically represented.
The Subadviser expects to take advantage of valuation anomalies in
international markets created by the emergence of established U.S. technology
18
<PAGE>
trends in overseas markets and the relative immaturity of the technology sectors
in those countries' securities markets.
Securities of large companies that are well established in the world
technology market can be expected to grow with the market and will frequently be
held in the Global Technology Fund's portfolio; however, rapidly changing
technologies and the expansion of technology and technology-related industries
provide a favorable environment for investment in companies of small- to
medium-size. Consequently, the Series' investments are not subject to any
minimum capitalization requirement and securities may be included in the Series'
portfolio without regard to the capitalization of the issuer.
GENERAL. In allocating investments among geographic regions and individual
countries, the Subadviser will consider such factors as the relative economic
growth potential of the various economies and securities markets; expected
levels of inflation; financial, social and political conditions influencing
investment opportunities; and the outlook for currency relationships.
Each Series may invest in all types of securities, many of which will be
denominated in currencies other than the U.S. dollar. Each Series will normally
invest its assets in equity securities, including common stock, securities
convertible into or exchangeable for common stock, depositary receipts and
warrants. A Series may, however, invest up to 25% of its assets in preferred
stock and debt securities. Dividends or interest income are considered only when
the Subadviser believes that such income will favorably influence the market
value of a security in light of each Series' objective of capital appreciation.
Equity securities in which each Series will invest may be listed on a U.S. or
foreign stock exchange or traded in U.S. or foreign over-the-counter markets.
Debt securities in which each Series may invest are not required to be
rated by a recognized rating agency. As a matter of policy, each Series, with
the exception of the Emerging Markets Growth Fund, will invest only in
"investment grade" debt securities or, in the case of unrated securities, debt
securities that are, in the opinion of the Subadviser, of equivalent quality to
"investment grade" securities. "Investment grade" debt securities are rated
within the four highest rating categories as determined by Moody's Investors
Service, Inc. ("Moody's") or Standard & Poor's Rating Service ("S&P").
Securities rated within the highest of the four investment grade categories
(i.e., Aaa by Moody's and AAA by S&P) are judged to be of the best quality and
carry the smallest degree of risk. For capital appreciation, the Emerging
Markets Growth Fund may invest up to 5% of its assets in governmental and
corporate debt securities that, at the time of purchase by the Series, are rated
Baa or lower by Moody's and BBB or lower by S&P or, if unrated, deemed by the
Subadviser to be of comparable quality. The Emerging Markets Growth Fund will
not invest in debt securities rated lower than C by Moody's or C by S&P or, if
unrated, deemed by the Subadviser to be of comparable quality. Securities rated
Baa/BBB or lower lack high quality investment characteristics and may also have
speculative characteristics. (Appendix A to the Statement of Additional
Information contains a description of these rating categories.) Debt securities
are interest-rate sensitive; accordingly, their value tends to decrease when
interest rates rise and increase when interest rates fall.
Each Series may invest in securities represented by European Depositary
Receipts ("EDRs"), American Depositary Receipts ("ADRs") and Global Depositary
Receipts ("GDRs") (collectively, "Depositary Receipts"). ADRs are receipts
generally issued by a domestic bank or trust company that represent the deposit
of a security of a foreign issuer. ADRs may be publicly traded on exchanges or
over-the-counter in the United States and are quoted and settled in dollars at a
price that generally reflects the dollar equivalent of the home country share
price. EDRs and GDRs are receipts similar to ADRs and are typically issued by
foreign banks or trust companies and traded in Europe. Depositary Receipts may
be issued as sponsored or unsponsored programs. In sponsored programs, the
issuer has made arrangements to have its securities traded in the form of a
Depositary Receipt. In unsponsored programs, the issuer may not be directly
involved in the creation of the
19
<PAGE>
program. Although regulatory requirements with respect to sponsored and
unsponsored programs are generally similar, the issuers of unsponsored
Depositary Receipts are not obligated to disclose material information in the
United States and, therefore, the import of such information may not be
reflected in the market value of such securities. For purposes of a Series'
investment policies, an investment in Depositary Receipts will be deemed to be
an investment in the underlying security.
By investing in foreign securities, a Series will attempt to take advantage
of differences among economic trends and the performance of securities markets
in various countries. To date, the market values of securities of issuers
located in different countries have moved relatively independently of each
other. During certain periods, the return on equity investments in some
countries has exceeded the return on similar investments in the United States.
The Subadviser believes that, in comparison with investment companies investing
solely in domestic securities, it may be possible to obtain significant
appreciation from a portfolio of foreign investments and securities from various
markets that offer different investment opportunities and are affected by
different economic trends. International and global diversification reduces the
effect events in any one country will have on a Series' entire investment
portfolio. Of course, a decline in the value of a Series' investments in one
country may offset potential gains from investments in another country.
FOREIGN INVESTMENT RISK FACTORS. Investments in securities of foreign
issuers may involve risks that are not associated with domestic investments, and
there can be no assurance that a Series' foreign investments will present less
risk than a portfolio of domestic securities. Foreign issuers may lack uniform
accounting, auditing and financial reporting standards, practices and
requirements, and there is generally less publicly available information about
foreign issuers than there is about U.S. issuers. Governmental regulation and
supervision of foreign stock exchanges, brokers and listed companies may be less
pervasive than is customary in the United States. Securities of some foreign
issuers are less liquid, and their prices are more volatile, than securities of
comparable domestic issuers. Foreign securities settlements may in some
instances be subject to delays and related administrative uncertainties which
could result in temporary periods when assets of a Series are uninvested and no
return is earned thereon and may involve a risk of loss to a Series. Foreign
securities markets may have substantially less volume than U.S. markets and far
fewer traded issues. Fixed brokerage commissions on foreign securities exchanges
are generally higher than in the United States and transaction costs with
respect to smaller capitalization companies may be higher than those of larger
capitalization companies. Income from foreign securities may be reduced by a
withholding tax at the source or other foreign taxes. In some countries, there
may also be the possibility of expropriation or confiscatory taxation (in which
a Series could lose its entire investment in a certain market), limitations on
the removal of moneys or other assets of a Series, political or social
instability or revolution, or diplomatic developments that could affect
investments in those countries. In addition, it may be difficult to obtain and
enforce a judgment in a court outside the United States.
Each Series may invest in sovereign debt. The actions of governments
concerning their respective economies could have an important effect on their
ability or willingness to service their sovereign debt. Such actions could have
significant effects on market conditions and on the prices of securities and
instruments held by a Series, including the securities and instruments of
foreign private issuers. Factors which may influence the ability or willingness
of foreign sovereigns to service debt include, but are not limited to, the
availability of sufficient foreign exchange on the date of payment is due, the
relative size of its debt service burden to the economy as a whole, its balance
of payments (including export performance) and cash flow situation, its access
to international credits and investments, fluctuations in interest and currency
rates and reserves, and its government's policies towards the International
Monetary Fund, the World Bank and other international agencies. If a foreign
sovereign defaults on all or a portion of its foreign debt, a Series may have
20
<PAGE>
limited legal recourse against the issuer and/or guarantor. Remedies must, in
some cases, be pursued in the courts of the defaulting party itself, and the
ability of the holder of foreign sovereign debt securities to obtain recourse
may be subject to the political climate in the prevailing country.
EMERGING MARKET INVESTMENT RISK FACTORS. Some of the risks described in the
preceding paragraphs may be more severe for investments in emerging or
developing countries. By comparison with the United States and other developed
countries, emerging or developing countries may have relatively unstable
governments, economies based on a less diversified industrial base and
securities markets that trade a smaller number of securities. Companies in
emerging markets may generally be smaller, less seasoned and more recently
organized than many domestic companies. Prices of securities traded in the
securities markets of emerging or developing countries tend to be volatile.
Furthermore, foreign investors are subject to many restrictions in emerging or
developing countries. These restrictions may require, among other things,
governmental approval prior to making investments or repatriating income or
capital, or may impose limits on the amount or type of securities held by
foreigners or on the companies in which the foreigners may invest.
The economies of individual emerging countries may differ favorably or
unfavorably from the U.S. economy in such respects as growth of gross domestic
product, rates of inflation, currency depreciation, capital reinvestment,
resource self-sufficiency and balance of payment position and may be based on a
substantially less diversified industrial base. Further, the economies of
developing countries generally are heavily dependent upon international trade
and, accordingly, have been, and may continue to be, adversely affected by trade
barriers, exchange controls, managed adjustments in relative currency values and
other protectionist measures imposed or negotiated by the countries with which
they trade. These economies also have been, and may continue to be, adversely
affected by economic conditions in the countries with which they trade.
FOREIGN CURRENCY RISK FACTORS. Investments in foreign securities will
usually be denominated in foreign currency, and each Series may temporarily hold
funds in foreign currencies. The value of a Series' in-vestments denominated in
foreign currencies may be affected, favorably or unfavorably, by the relative
strength of the U.S. dollar, changes in foreign currency and U.S. dollar
exchange rates and exchange control regulations. A Series may incur costs in
connection with conversions between various currencies. A Series' net asset
value 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 the sale of securities and net
investment income and gains, if any, to be distributed to shareholders by a
Series. The rate of exchange between the U.S. dollar and other currencies is
determined by the forces of supply and demand in the foreign exchange markets
(which in turn are affected by interest rates, trade flow and numerous other
factors, including, in some countries, local governmental intervention).
TECHNOLOGY INVESTMENT RISK FACTORS. The value of the Global Technology Fund
shares may be susceptible to factors affecting technology and technology-related
industries and to greater risk and market fluctuation than an investment in a
fund that invests in a broader range of portfolio securities. As such, the
Global Technology Fund is not an appropriate investment for individuals who
require safety of principal or stable income from their investments. Technology
and technology-related industries may be subject to greater governmental
regulation than many other industries in certain countries; changes in
governmental policies and the need for regulatory approvals may have a material
adverse effect on these industries. Additionally, these companies may be subject
to risks of developing technologies, competitive pressures and other factors and
are dependent upon consumer and business acceptance as new technologies evolve.
Securities of smaller, less experienced companies also may involve greater
risks, such as limited product lines, markets and financial or managerial
resources, and trading in such securities may be subject to more
21
<PAGE>
abrupt price movements than trading in the securities of larger companies.
SMALLER COMPANY INVESTMENT RISK FACTORS. The Subadviser believes that
smaller companies generally have greater earnings and sales growth potential
than larger companies. However, investments in such companies may involve
greater risks, such as limited product lines, markets and financial or
managerial resources. Less frequently traded securities may be subject to more
abrupt price movements than securities of larger companies.
YEAR 2000 RISKS. The Fund is dependent upon service providers and their
computer systems for its day-to-day operations, and many of the Fund's service
providers in turn depend upon computer systems of other persons. Many computer
systems currently cannot properly recognize or process date sensitive
information relating to the year 2000 and beyond. The Manager, Subadviser,
Seligman Financial Services, Inc., and the Fund's custodian have been evaluating
the impact the year 2000 issue may have on their computer systems. They expect
that any modifications to their computer systems necessary to address the year
2000 issue will be made and tested in a timely manner. They are also working
with vendors and other persons whose systems are linked to theirs to obtain
satisfactory assurances regarding the year 2000 issue. Seligman Data Corp.,
which provides certain corporate and shareholder account services to the Fund at
cost, has informed the Fund that it does not expect that the cost to the Fund of
its services will increase materially as a result of the modifications to its
computer systems necessary to prepare for the year 2000. The costs of systems
remediation by persons other than Seligman Data Corp. will not be borne directly
by the Fund. There can be no assurance that the remedial actions taken by the
Fund's service providers will be sufficient or timely. Inadequate remediation
could have an adverse effect on the Fund's operations, including pricing and
securities trading and settlement, and the provision of shareholder services.
DERIVATIVES. Each series may invest in financial instruments commonly known
as "derivatives" only for hedging or investment purposes. A Series will not
invest in derivatives for speculative purposes, i.e., where the derivative
investment exposes the Series to undue risk of loss, such as where the risk of
loss is greater than the cost of the investment.
A derivative is generally defined as an instrument whose value is derived
from, or based upon, some underlying index, reference rate (e.g., interest rates
or currency exchange rates), security, commodity or other asset. A Series will
not invest in a specific type of derivative without prior approval from the
Fund's Board of Directors, after consideration of, among other things, how the
derivative instrument serves the Series' investment objective, and the risk
associated with the investment. The only types of derivatives in which each
Series is currently permitted to invest are stock purchase rights and warrants,
and, as described more fully below, forward currency exchange contracts and put
options.
A Series may not invest in rights and warrants, if, at the time of
acquisition, the investment in rights and warrants would exceed 5% of such
Series' net assets (valued at the lower of cost or market). In addition, no more
than 2% of net assets of a Series may be invested in warrants not listed on the
New York or American Stock Exchanges. For purposes of this restriction, warrants
acquired in units or attached to securities will be deemed to have been
purchased without cost.
FORWARD CURRENCY EXCHANGE CONTRACTS. The Subadviser will consider changes
in exchange rates in making investment decisions. As one way of managing
exchange rate risk, each Series may enter into forward currency exchange
contracts (agreements to purchase or sell foreign currencies at a future date).
A Series will usually enter into these contracts to fix the U.S. dollar value of
a security that it has agreed to buy or sell for the period between the date the
trade was entered into and the date the security is delivered and paid for. A
Series may also use these contracts to hedge the U.S. dollar value of securities
it already owns. A Series may be required to cover certain forward currency
contract positions by establishing a segregated account with its custodian that
will contain only liquid assets, such as U.S. Government securities or other
liquid high-grade debt obligations.
Although a Series will seek to benefit by using forward contracts,
anticipated currency movements may not be accurately predicted and the Series
may therefore incur a gain or loss on a forward contract. A forward contract may
help reduce a Series' losses on securities denominated in foreign currency, but
it may also reduce the potential gain on the securities depending on changes in
the currency's value relative to the U.S. dollar or other currencies.
OPTIONS TRANSACTIONS. Each Series may purchase put options on portfolio
securities in an attempt to hedge against a decrease in the price of a security
held by such Series. A Series will not purchase options for speculative
purposes. Purchasing a put option gives a Series the right to sell, and
obligates the writer to buy, the underlying security at the exercise price at
any time during the option period.
When a Series purchases an option, it is required to pay a premium to the
party writing the option and a commission to the broker selling the option. If
the option is exercised by the Series, the premium and the commission paid may
be greater than the amount of the brokerage commission charged if the security
were to be purchased or sold directly. See "Investment Objectives, Policies and
Risks" in the Statement of Additional Information.
22
<PAGE>
BORROWING. Each Series may from time to time borrow money from banks for
temporary, extraordinary or emergency purposes and may invest the funds in
additional securities. Such borrowing will not exceed 5% of a Series' total
assets (except the Emerging Markets Growth Fund, where such borrowings will not
exceed 10% of such Series' total assets) and will be made at prevailing interest
rates.
LENDING OF PORTFOLIO SECURITIES. Each Series may lend its portfolio
securities to brokers, dealers and other institutional investors in an amount
not to exceed 331/3% of a Series' total assets taken at market value, for which
it will receive collateral in cash or securities issued or guaranteed by the
U.S. Government to be maintained in an amount equal to at least 100% of the
current market value of the loaned securities. The lending of portfolio
securities could involve the risk of delays in receiving additional collateral
or in the recovery of securities and possible loss of rights in collateral in
the event that a borrower fails financially.
REPURCHASE AGREEMENTS. Each Series may enter into repurchase agreements
with commercial banks or broker/dealers under which the Series acquires a U.S.
Government or a short-term money market instrument subject to resale at a
mutually agreed-upon price and time. The resale price reflects an agreed upon
interest rate effective for the period the Series holds the instrument that is
unrelated to the interest rate on the instrument.
A Series' repurchase agreements will at all times be fully collateralized,
and the Series will make payment for such securities only upon physical delivery
or evidence of book entry transfer to the account of its custodian. Repurchase
agreements could involve certain risks in the event of bankruptcy or other
default of the seller, including possible delays and expenses in liquidating the
underlying security, decline in the value of the underlying security and loss of
interest.
OTHER INVESTMENT COMPANIES. Certain emerging markets have restrictions that
preclude or limit direct foreign investment in the securities of their
companies. However, indirect foreign investment is permitted in certain emerging
markets through governmentally authorized investment vehicles or companies,
including closed-end investment companies, which may be acquired at prices in
excess of their net asset values. In accordance with the 1940 Act, each Series
may invest up to 10% of its assets in shares of other investment companies. If a
Series invests in other investment companies, shareholders would bear not only
their proportionate share of Series' expenses (including operating expenses and
advisory fees), but also similar expenses of the underlying investment
companies.
ILLIQUID SECURITIES. Each Series may invest up to 15% of its net assets in
illiquid securities, including restricted securities (i.e., securities not
readily market-able without registration under the Securities Act of 1933 (the
"1933 Act")) and other securities that are not readily marketable, such as
repurchase agreements of more than one week's duration. A Series may purchase
restricted securities that may be offered and sold only to "qualified
institutional buyers" under Rule 144A of the 1933 Act, and the Manager, acting
pursuant to procedures approved by the Fund's Board of Directors, may determine,
when appropriate, that specific Rule 144A securities are liquid and not subject
to the 15% limitation on illiquid securities. Should this determination be made,
the Manager, acting pursuant to such procedures, will carefully monitor the
security (focusing on such factors, among others, as trading activity and
availability of information) to determine that the Rule 144A security continues
to be liquid. It is not possible to predict with assurance exactly how the
market for Rule 144A securities will further evolve. This investment practice
could have the effect of increasing the level of illiquidity in a Series, if and
to the extent that qualified institutional buyers become for a time uninterested
in purchasing Rule 144A securities.
SHORT SALES. Each Series may sell securities short "against-the-box." A
short sale "against-the-box" is a short sale in which a Series owns an equal
amount of the securities sold short or securities convertible into or
exchangeable without payment of further consideration for securities of the same
issue as, and equal in amount to, the securities sold short.
TEMPORARY INVESTMENTS. When the Subadviser believes that market conditions
warrant a temporary
23
<PAGE>
defensive position, a Series may invest up to 100% of its assets in short-term
instruments such as commercial paper, bank certificates of deposit, bankers'
acceptances, or repurchase agreements for such securities and securities of the
U.S. Government and its agencies and instrumentalities, as well as cash and cash
equivalents denominated in foreign currencies. Investments in domestic bank
certificates of deposit and bankers' acceptances will be limited to banks that
have total assets in excess of $500 million and are subject to regulatory
supervision by the U.S. Government or state governments. A Series' investments
in commercial paper of U.S. issuers will be limited to (a) obligations rated
Prime-1 by Moody's or A-1 by S&P or (b) unrated obligations issued by companies
having an outstanding unsecured debt issue currently rated A or better by S&P's.
A description of various commercial paper ratings and debt securities ratings
appears in Appendix A to the Statement of Additional Information. A Series'
investments in foreign short-term instruments will be limited to those that, in
the opinion of the Subadviser, equate generally to the standards established for
U.S. short-term instruments.
Except as noted above, the foregoing investment policies are not
fundamental and the Board of Directors of the Fund may change such policies
without the vote of a majority of outstanding voting securities of a Series. A
more detailed description of each Series' investment policies, including a list
of those restrictions on each Series' investment activities which cannot be
changed without such a vote, appears in the Statement of Additional Information.
Under the 1940 Act, a "vote of a majority of the outstanding voting securities"
of a Series means the affirmative vote of the lesser of (1) more than 50% of the
outstanding shares of the Series, or (2) 67% or more of the shares of the Series
present at a shareholders' meeting, if more than 50% of the outstanding shares
of the Series are represented at the meeting in person or by proxy.
MANAGEMENT SERVICES
THE MANAGER. The Board of Directors provides broad supervision over the
affairs of the Fund. Pursuant to a Management Agreement between J. & W.
Seligman & Co. Incorporated and the Fund, on behalf of the Series, the Manager
administers the business and other affairs of the Fund. The address of the
Manager is 100 Park Avenue, New York, NY 10017.
The Manager also serves as manager of seventeen other investment companies
which, together with the Fund, comprise the "Seligman Group." These other
companies are: Seligman Capital Fund, Inc., Seligman Cash Management Fund, Inc.,
Seligman Common Stock Fund, Inc., Seligman Communications and Information Fund,
Inc., Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman High
Income Fund Series, Seligman Income Fund, Inc., Seligman Municipal Fund Series,
Inc., Seligman Municipal Series Trust, Seligman New Jersey Municipal Fund, Inc.,
Seligman Pennsylvania Municipal Fund Series, Seligman Portfolios, Inc., Seligman
Quality Municipal Fund, Inc., Seligman Select Municipal Fund, Inc., Seligman
Value Fund Series, Inc. and Tri-Continental Corporation. The aggregate assets of
the Seligman Group at January 31, 1998 were approximately $18.2 billion. The
Manager also provides investment management or advice to institutional and other
accounts having an aggregate value at January 31, 1998 of approximately $6.5
billion.
Mr. William C. Morris is Chairman of the Manager and Chairman of the Board
and Chief Executive Officer of the Fund. Mr. Morris owns a majority of the
outstanding voting securities of the Manager.
The Manager provides senior management for Seligman Data Corp., a
wholly-owned subsidiary of certain investment companies in the Seligman Group,
which performs, at cost, certain recordkeeping functions for the Fund, maintains
the records of shareholder accounts and furnishes dividend paying, redemption
and related services.
The Manager is entitled to receive a management fee from each Series,
calculated daily and payable monthly, equal to an annual rate of 1.25% of the
average daily net assets of the Emerging Markets Growth Fund and 1.00% of the
average daily net assets of each other Series, of which 1.15% and .90%,
respectively, are paid to the Subadviser for services described below. The
management fees are higher
24
<PAGE>
than those of many domestic investment companies but are comparable to those of
most international and global equity funds. Each Series pays all of its expenses
other than those assumed by the Manager or the Subadviser, including fees for
necessary professional and brokerage services, costs of regulatory compliance,
costs associated with maintaining corporate existence, custody and shareholder
services, shareholder relations and insurance costs.
The management fee rate paid by each Series and the total expenses for each
Series' Class A, Class B and Class D shares, expressed as a percentage of
average daily net assets of that Series or Class, are presented in the following
table for the fiscal year ended October 31, 1997.
MANAGEMENT
FEE RATE
FOR THE
FISCAL YEAR EXPENSE RATIOS FOR
ENDED THE FISCAL YEAR
SERIES 10/31/97 ENDED 10/31/97
----- ------- -----------------------
CLASS A CLASS B CLASS D
------- ------- -------
International Fund 1.00% 1.78% 2.58% 2.58%
Emerging Markets
Growth Fund 1.25% 2.27% 3.04% 3.04%
Global Growth
Opportunities Fund 1.00% 1.69% 2.45% 2.45%
Global Smaller
Companies Fund 1.00% 1.67% 2.43% 2.43%
Global Technology
Fund 1.00% 1.67% 2.42% 2.42%
THE SUBADVISER. Seligman Henderson Co. serves as Subadviser to the Fund
pursuant to Subadvisory Agreements between the Manager and the Subadviser (the
"Subadvisory Agreements"). The Subadvisory Agreements provide that the
Subadviser will supervise and direct the Series' global investments in
accordance with each Series' investment objective, policies and restrictions.
The Subadviser was founded in 1991 as a joint venture between the Manager
and Henderson International, Inc., a controlled affiliate of Henderson plc. The
Subadviser, headquartered in New York, was created to provide international and
global investment management services to institutional and individual investors
and investment companies. The Subadviser also serves as Subadviser to Seligman
Capital Fund, Inc., Seligman Common Stock Fund, Inc., Seligman Communications
and Information Fund, Inc., Seligman Frontier Fund, Inc., Seligman Growth Fund,
Inc., Seligman Income Fund, Inc., certain portfolios of Seligman Portfolios,
Inc., Seligman Value Fund Series, Inc. and Tri-Continental Corporation. The
address of the Subadviser is 100 Park Avenue, New York, NY 10017.
On February 10, 1998, AMP Ltd. made an offer to purchase all of the
outstanding shares of Hendersen plc. The offer is subject to various conditions.
The Manager and the Fund's Board of Directors are monitoring the status of the
offer and its implications for the subadvisor's relationship with the Fund.
PORTFOLIO MANAGEMENT. The Subadviser's Global Policy Group provides global
investment policy, including country weightings, asset allocations and industry
sector guidelines, as appropriate for each Series. The Group also provides
overall policy with respect to identifying the global economic or social trends
which will serve as the focus around which investments will be made with respect
to the Global Growth Opportunities Fund.
The Chairman of the Group is Mr. Iain C. Clark, who has been Chief
Investment Officer of the Subadviser since April 1992. Mr. Clark is responsible
for the day-to-day investment activities of the International Fund and the
international investments of the Global Smaller Companies Fund, including the
selection of individual securities for purchase or sale. He has been a Director
and Senior Portfolio Manager of Henderson plc since 1985.
Mr. Arsen Mrakovcic, a Vice President of the Fund, has responsibility for
overseeing the domestic investments of the Global Smaller Companies Fund. Mr.
Mrakovcic, a Managing Director of the Manager since January 1996, joined the
Manager in June 1992 as a Portfolio Assistant. He was appointed Co-Portfolio
Manager of Seligman Frontier Fund, Inc. and Vice President, Investment Officer
of the Manager on January 1, 1995. He has been the sole Portfolio Manager of
Seligman Frontier Fund, Inc. since October 1, 1995. Mr. Mrakovcic is also Vice
President of Seligman Portfolios, Inc. and Portfolio Manager of its Seligman
Frontier Portfolio and Co-Portfolio Manager of its Seligman Henderson Global
Smaller Companies Portfolio.
The Manager's discussion of the International Fund's and the Global Smaller
Companies Fund's performance as well as line graphs illustrating comparative
performance information between the International
25
<PAGE>
Fund and the Lipper International Funds Average and the Morgan Stanley Capital
International Europe-Australasia-Far East Index, and between the Global Smaller
Companies Fund and the Lipper Global Small Cap Funds Average, the Morgan Stanley
Capital International World Index and the Salomon Brothers World EM Index are
included in the Fund's fiscal 1997 Annual Report to shareholders.
Mr. Peter Bassett has responsibility for directing and overseeing the
investments of the Emerging Markets Growth Fund. Mr. Bassett has been head of
Emerging Market Investments and Divisional Director, Henderson Investment
Management, Henderson plc, since 1993. He was previously Deputy Head of the Far
East Desk and Director at Touche Remnant & Co.
The Manager's discussion of the Emerging Market Growth Fund's performance
as well as a line graph illustrating comparative performance information between
the Emerging Markets Growth Fund and the Lipper Emerging Markets Funds Average
and the Morgan Stanley Capital International Emerging Markets Free Index is
included in the Fund's fiscal 1997 Annual Report to shareholders.
Messrs. Richard R. Schmaltz and Nitin Mehta have responsibility for
directing and overseeing the Global Growth Opportunities Fund's domestic and
international investments, respectively.
Mr. Schmaltz is primarily responsible for directing and overseeing the
domestic investments of the Global Growth Opportunities Fund as a member of the
Seligman Growth Team. Mr. Schmaltz joined the Manager in September 1996 as a
Managing Director, Director of Investments. In November 1997, Mr. Schmaltz also
was named Director of the Manager. From May 1993 to September 1996, Mr. Schmaltz
was Director, Investment Research at Neuberger and Berman. Prior thereto, Mr.
Schmaltz was Executive Vice President of McGlinn Capital. Mr. Schmaltz is also
responsible for directing and overseeing the domestic investments of the
Seligman Henderson Global Growth Opportunities Portfolio of Seligman Portfolios,
Inc. ("SPI"), and for the day-to-day management of Seligman Capital Fund, Inc.,
Seligman Growth Fund, Inc., and the Seligman Capital Portfolio of SPI.
Mr. Mehta has been a portfolio manager with Henderson plc since September
1994. From May 1993 to September 1994, Mr. Mehta was Head of Currency Management
and Derivatives at Quorum Capital Management. From February 1993 to May 1993 he
was a consultant with International Finance Corporation. From 1986 through 1992,
he was Head of Equity Investments at Shearson Lehman Global Asset Management.
The Manager's discussion of the Global Growth Opportunities Fund's
performance as well as a line graph illustrating comparative performance
information between the Global Growth Opportunities Fund and the Lipper Global
Funds Average and the Morgan Stanley Capital International World Index is
included in the Fund's fiscal 1997 Annual Report to shareholders.
Mr. Paul H. Wick and Mr. Brian Ashford-Russell have responsibility for
directing and overseeing the domestic and international investments,
respectively, of the Global Technology Fund.
Mr. Wick, a Vice President of the Fund, has been a Managing Director of the
Manager since January 1995 and was elected Director of the Manager in November
1997. He joined the Manager in 1987 as an Associate, Investment Research. From
April 1989 to December 1989, he was co-Portfolio Manager of Seligman High-Yield
Bond Series. Mr. Wick has been Vice President and Portfolio Manager of Seligman
Communications and Information Fund, Inc. since January 1990 and December 1989,
respectively. He is also Vice President of Seligman Portfolios, Inc. and
Portfolio Manager of its Seligman Communications and Information Portfolio and
Co-Portfolio Manager of its Seligman Henderson Global Technology Portfolio.
Previously, Mr. Wick was Vice President and Portfolio Manager of Seligman
Frontier Fund, Inc.
Mr. Ashford-Russell has been a Portfolio Manager with Henderson plc since
February 1993. He was previously a Portfolio Manager with Touche Remnant & Co.
26
<PAGE>
The Manager's discussion of the Global Technology Fund's performance as
well as a line graph illustrating comparative performance information between
the Global Technology Fund and the Lipper Global Funds Average and the Morgan
Stanley Capital International World Index are included in the Fund's fiscal 1997
Annual Report to shareholders.
PORTFOLIO TRANSACTIONS. The Management Agreement and Subadvisory Agreement
each recognize that in the purchase and sale of portfolio securities, the
Manager and the Subadviser will seek the most favorable price and execution and,
consistent with that policy, may give consideration to the research, statistical
and other services furnished by brokers or dealers to the Manager and the
Subadviser. The use of brokers who provide investment and market research and
securities and economic analysis may result in higher brokerage charges than the
use of brokers selected on the basis of the most favorable brokerage commission
rates, and research and analysis received may be useful to the Manager and
Subadviser in connection with their services to other clients as well as to the
Series. In over-the-counter markets, orders are placed with responsible primary
market-makers unless a more favorable execution or price is believed to be
obtainable.
Consistent with the Rules of the National Association of Securities
Dealers, Inc., and subject to seeking the most favorable price and execution
available and such other policies as the Directors of the Fund may determine,
the Manager and the Subadviser may consider sales of shares of the Series of the
Fund and, if permitted by applicable laws, may consider sales of shares of the
other Seligman Mutual Funds as a factor in the selection of brokers or dealers
to execute portfolio transactions for the Series.
PORTFOLIO TURNOVER. A change in securities held by a Series is known as
"portfolio turnover," which may result in the payment by such Series of dealer
spreads or underwriting commissions and other transactions costs on the sale of
securities as well as on the reinvestment of the proceeds in other securities.
High portfolio turnover involves correspondingly greater transactions costs and
a possible increase in short-term capital gains or losses. Although it is the
policy of each Series to hold securities for investment, changes will be made
from time to time when the Subadviser believes such changes will strengthen a
Series' portfolio. The portfolio turnover of any Series is not expected to
exceed 100%.
PURCHASE OF SHARES
Seligman Financial Services, Inc. ("SFSI"), an affiliate of the Manager,
acts as general distributor of the Series' shares. Its address is 100 Park
Avenue, New York, NY 10017.
Each Series issues three classes of shares: Class A shares are sold to
investors choosing the initial sales load alternative; Class B shares are sold
to investors choosing to pay no initial sales load, a higher distribution fee
and a CDSL with respect to redemptions within six years of purchase and who
desire shares to convert automatically to Class A shares after eight years; and
Class D shares are sold to investors choosing no initial sales load, a higher
distribution fee and a CDSL on redemptions within one year of purchase. See
"Alternative Distribution System" above.
Shares of the Series may be purchased through any authorized investment
dealer. All orders will be executed at the net asset value per share next
determined after receipt of the purchase order plus, in the case of Class A
shares, a sales load which, except for shares purchased under one of the reduced
sales load plans, will vary with the size of the purchase as shown in the
schedule under "Class A Shares--Initial Sales Load" below.
THE MINIMUM AMOUNT FOR INITIAL INVESTMENT IN A SERIES IS $1,000; SUBSEQUENT
INVESTMENTS MUST BE IN THE MINIMUM AMOUNT OF $100 FOR EACH SERIES (EXCEPT FOR
INVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS). THE FUND RESERVES THE
RIGHT TO RETURN INVESTMENTS THAT DO NOT SATISFY THESE MINIMUMS. EXCEPTIONS TO
THESE MINIMUMS ARE AVAILABLE FOR FUND ACCOUNTS ESTABLISHED CONCURRENTLY WITH THE
INVEST-A-CHECK(R) SERVICE. THE MINIMUM AMOUNT FOR INITIAL INVESTMENT IN THE
SELIGMAN TIME HORIZON MATRIXSM ASSET ALLOCATION PROGRAM IS $10,000. FOR
INFORMATION ABOUT THIS PROGRAM, CONTACT YOUR FINANCIAL ADVISOR.
27
<PAGE>
The minimum amount for initial investment in the Fund is $500 for investors
who purchase shares of the Fund through Merrill Lynch's MFA or MFA Select
programs. There is no minimum investment required for investors who purchase
shares of the Series through wrap fee programs.
Purchase orders placed for Class B shares must be for an amount LESS THAN
$250,000.
Orders received by an authorized dealer by the close of regular trading on
the New York Stock Exchange ("NYSE") (normally, 4:00 p.m. Eastern time) and
accepted by SFSI before the close of business (5:00 p.m. Eastern time) on the
same day will be executed at the Series' net asset value determined as of the
close of regular trading on the NYSE on that day plus, in the case of Class A
shares, any applicable sales load. Orders accepted by dealers after the close of
regular trading on the NYSE, or received by SFSI after the close of business,
will be executed at the Series' net asset value as next determined plus, in the
case of Class A shares, any applicable sales load. The authorized dealer through
which a shareholder purchases shares is responsible for forwarding the order to
SFSI promptly.
Payment for dealer purchases may be made by check or by wire. To wire
payments, dealer orders must first be placed through SFSI's order desk and
assigned a purchase confirmation number. Funds in payment of the purchase may
then be wired to Mellon Bank, N.A., ABA #043000261, A/C (Name of Series) (A, B
or D), A/C #107-1011. WIRE TRANSFERS MUST INCLUDE THE PURCHASE CONFIRMATION
NUMBER AND CLIENT ACCOUNT REGISTRATION AND ACCOUNT NUMBER. Persons other than
dealers who wish to wire payment should contact Seligman Data Corp. for specific
wire instructions. Although the Fund makes no charge for this service, the
transmitting bank may impose a wire service fee.
Current shareholders may purchase additional shares of a Series at any time
through any authorized dealer or by sending a check, payable to "Seligman Group
of Funds," in a postage-paid return envelope or directly to SELIGMAN DATA CORP.,
P.O. BOX 3947, NEW YORK, NY 10008-3947. Checks for investment must be in U.S.
dollars drawn on a domestic bank. The check should be accompanied by an
investment slip (provided on the bottom of shareholder account statements) and
include the shareholder's name, address, account number, Series name, and class
of shares (A, B or D). Checks sent directly to Seligman Data Corp. and received
in good order will be invested at such Series' net asset value determined as of
the close of regular trading on the NYSE on that day plus, in the case of Class
A shares, any applicable sales load.
IF A SHAREHOLDER DOES NOT PROVIDE THE REQUIRED INFORMATION, SELIGMAN DATA
CORP. WILL SEEK FURTHER CLARIFICATION AND MAY BE FORCED TO RETURN THE CHECK TO
THE SHAREHOLDER. IF ONLY THE CLASS DESIGNATION IS MISSING, THE INVESTMENT WILL
AUTOMATICALLY BE MADE IN CLASS A SHARES FOR NEW ACCOUNTS OR IN THE SHAREHOLDER'S
EXISTING CLASS FOR ADDITIONAL PURCHASES. Credit card convenience checks and
third party checks (i.e., checks made payable to someone other than the
"Seligman Group of Funds") may not be used to open a new fund account or
purchase additional shares of the Fund.
28
<PAGE>
Seligman Data Corp. may charge a $10.00 service fee for checks returned to
it as uncollectible. This fee may be deducted from the shareholder's account.
For the protection of the Fund and its shareholders, no redemption proceeds will
be remitted to a shareholder with respect to shares purchased by check (unless
certified) until the Fund receives notice that the check has cleared, which may
be up to 15 days from the credit of the shares to the shareholder's account.
VALUATION. The net asset value of a Series' shares is determined as of the
close of regular trading on the NYSE (normally, 4:00 p.m. Eastern time) each
day. Net asset value is calculated separately for each class of shares of a
Series. 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. Short-term holdings maturing in 60 days or
less are generally valued at amortized cost if their original maturity was 60
days or less. Short-term holdings with more than 60 days remaining to maturity
will be valued at current market value until the 61st day prior to maturity, and
will then be valued on an amortized cost basis based on the value of such date
unless the Board determines that this amortized cost value does not represent
fair market value. Any securities for which recent market quotations are not
readily available are valued at fair value determined in accordance with
procedures approved by the Fund's Board of Directors.
Although the legal rights of the Class A, Class B and Class D shares of
each Series are substantially identical, the different expenses borne by each
class will result in different net asset values and dividends. The net asset
value of Class B and Class D shares will generally be lower than the net asset
value of Class A shares as a result of the higher distribution fee charged to
Class B and Class D shares. In addition, net asset value per share of the three
classes will be affected to the extent any other expenses differ among classes.
CLASS A SHARES--INITIAL SALES LOAD. Class A shares of each Series are
subject to an initial sales load which varies with the size of the purchase as
shown in the following schedule, and an annual service fee of up to .25% of the
average daily net asset value of Class A shares. See "Administration,
Shareholder Services and Distribution Plans."
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<PAGE>
- --------------------------------------------------------------------------------
CLASS A SHARES--SALES LOAD SCHEDULE
SALES LOAD AS A
PERCENTAGE OF REGULAR
-------------------- DEALER
NET AMOUNT DISCOUNT
INVESTED AS A % OF
OFFERING (NET ASSET OFFERING
AMOUNT OF PURCHASE PRICE VALUE) PRICE
------------------- -------- ---------- --------
Less than $ 50,000 4.75% 4.99% 4.25%
$ 50,000 - 99,999 4.00 4.17 3.50
100,000 - 249,999 3.50 3.63 3.00
250,000 - 499,999 2.50 2.56 2.25
500,000 - 999,999 2.00 2.04 1.75
1,000,000 or more* 0 0 0
- ----------
* Shares acquired at net asset value pursuant to the above schedule will be
subject to a CDSL of 1% if redeemed within 18 months of purchase. See
"Purchase of Shares-- Contingent Deferred Sales Load."
- --------------------------------------------------------------------------------
There is no initial sales load on purchases of Class A shares of $1,000,000
or more ("NAV sales"); however, such shares are subject to a CDSL of 1% if
redeemed within eighteen months of purchase.
SFSI shall pay broker/dealers, from its own resources, a fee on NAV sales,
calculated as follows: 1.00% of NAV sales up to but not including $2 million;
.80% of NAV sales from $2 million up to but not including $3 million; .50% of
NAV sales from $3 million up to but not including $5 million; and .25% of NAV
sales from $5 million and above. The calculation of the fee will be based on
assets held by a "single person" as defined below.
SFSI shall also pay broker/dealers, from its own resources, a fee on sales
of certain Class A shares of the Seligman Mutual Funds participating in an
"eligible employee benefit plan" (as defined below under "Special Programs")
that are attributable to the particular broker/dealer. The shares eligible for
the fee are those on which an initial sales load was not paid because either the
participating eligible employee benefit plan has at least (i) $500,000 invested
in the Seligman Mutual Funds or (ii) 50 eligible employees to whom such plan is
made available. Class A shares representing only an initial purchase of Seligman
Cash Management Fund are not eligible for the fee. Such shares will become
eligible for the fee once they are exchanged for shares of another Seligman
Mutual Fund. The payment is based on cumulative sales for each Plan during a
single calendar year, or portion thereof. The payment schedule, for each
calendar year, is as follows: 1.00% of sales up to but not including $2 million;
.80% of sales from $2 million up to but not including $3 million; .50% of sales
from $3 million up to but not including $5 million; and .25% of sales from $5
million and above.
REDUCED SALES LOADS. Reductions in sales loads apply to purchases of Class
A shares by a "single person," including an individual, members of a family unit
comprising husband, wife and minor children purchasing securities for their own
account, or a trustee or other fiduciary purchasing for a single fiduciary
account or single trust. Purchases made by a trustee or other fiduciary for a
fiduciary account may not be aggregated with purchases made on behalf of any
other fiduciary or individual account.
Shares purchased without an initial sales load in accordance with the sales
load schedule or pursuant to a Volume Discount, Right of Accumulation or Letter
of Intent are subject to a CDSL of 1% on redemptions within eighteen months of
purchase.
o VOLUME DISCOUNTS are provided if the total amount being invested in Class A
shares of a Series of the Fund alone, or in any combination of shares of the
Seligman Mutual Funds that are sold with an initial sales load, reaches levels
indicated in the above sales load schedule.
o THE RIGHT OF ACCUMULATION allows an investor to combine the amount being
invested in shares of any Seligman Mutual Fund sold with an initial sales load
with the total net asset value of shares already owned that were sold with an
initial sales load, including shares of Seligman Cash Management Fund that were
acquired by the investor through an exchange of shares of another Seligman
Mutual Fund on which there was an initial sales load, to determine reduced sales
loads in accordance with the sales load schedule. An investor or a dealer
purchasing shares on behalf of an investor must indicate that the investor has
existing accounts when making investments or opening new accounts.
30
<PAGE>
o A LETTER OF INTENT allows an investor to purchase Class A shares over a
13-month period at reduced sales loads, based upon the total amount the investor
intends to purchase plus the total net asset value of shares of the other
Seligman Mutual Funds already owned that were sold with an initial sales load
and the total net asset value of shares of Seligman Cash Management Fund that
were acquired by the investor through an exchange of shares of another Seligman
Mutual Fund on which there was an initial sales load. An investor or a dealer
purchasing shares on behalf of an investor must indicate that the investor has
existing accounts when making investments or opening new accounts. For more
information concerning terms of Letters of Intent, see "Terms and Conditions."
SPECIAL PROGRAMS. Each Series may sell Class A shares at net asset value to
present and retired directors, trustees, officers, employees and their spouses
(and family members of the foregoing) of the Fund, the other investment
companies in the Seligman Group, the Manager and other companies affiliated with
the Manager. Family members are defined to include lineal descendants and lineal
ancestors, siblings (and their spouses and children) and any company or
organization controlled by any of the foregoing. Such sales also may be made to
employee benefit and thrift plans for such persons and to any investment
advisory, custodial, trust or other fiduciary account managed or advised by the
Manager or any affiliate.
Class A shares also may be issued without an initial sales load in
connection with the acquisition of cash and securities owned by other investment
companies; to any registered unit investment trust which is the issuer of
periodic payment plan certificates, the net proceeds of which are invested in
Fund shares; to separate accounts established and maintained by an insurance
company which are exempt from registration under Section 3(c)(11) of the 1940
Act; to registered representatives and employees (and their spouses and minor
children) of any dealer that has a sales agreement with SFSI; to financial
institution trust departments; to registered investment advisers exercising
discretionary investment authority with respect to the purchase of Fund shares;
to accounts of financial institutions or broker/dealers that charge account
management fees, provided the Manager or one of its affiliates has entered into
an agreement with respect to such accounts; pursuant to sponsored arrangements
with organizations which make recommendations to or permit group solicitations
of, its employees, members or participants in connection with the purchase of
shares of the Fund; to other investment companies in the Seligman Group in
connection with a deferred fee arrangement for outside directors; and to
"eligible employee benefit plans" which have at least (i) $500,000 invested in
the Seligman Mutual Funds or (ii) 50 eligible employees to whom such plan is
made available. "Eligible employee benefit plans" means any plan or arrangement,
whether or not tax qualified, which provides for the purchase of Fund shares.
Sales of shares to such plans must be made in connection with a payroll
deduction system of plan funding or other system acceptable to Seligman Data
Corp.
Section 403(b) plans sponsored by public educational institutions are not
eligible for net asset value purchases based on the aggregate investment made by
the plan or number of eligible employees. Employee benefit plans eligible for
net asset sales, as described above, will be subject to a CDSL of 1% for
terminations at the plan level only, on redemptions of shares purchased within
eighteen months of plan termination. Sales pursuant to a 401(k) alliance program
which has an agreement with SFSI are available at net asset value and are not
subject to a CDSL.
CLASS B SHARES. Class B shares are sold without an initial sales load but
are subject to a CDSL if the shares are redeemed within six years of purchase at
rates set forth in the table below, charged as a percentage of the current net
asset value or the original purchase, whichever is less.
YEARS SINCE PURCHASE CDSL
- -------------------- ----
less than 1 year ..................................... 5%
1 year or more but less than 2 years ................. 4%
2 years or more but less than 3 years ................ 3%
3 years or more but less than 4 years ................ 3%
4 years or more but less than 5 years ................ 2%
5 years or more but less than 6 years ................ 1%
6 years or more ...................................... 0%
31
<PAGE>
Class B shares are also subject to an annual distribution fee of .75% and
an annual service fee of up to .25% of the average daily net asset value of the
Class B shares. SFSI will make a 4% payment to dealers in respect of purchases
of Class B shares. Approximately eight years after purchase, Class B shares will
convert automatically to Class A shares, which are subject to an annual service
fee of .25% but no distribution fee. Shares purchased through reinvestment of
dividends and distributions on Class B shares also will convert automatically to
Class A shares along with the underlying shares on which they were earned.
Conversion occurs at the end of the month which precedes the eighth anniversary
of the purchase date. If Class B shares of a Series are exchanged for Class B
shares of another Seligman Mutual Fund, the conversion period applicable to the
Class B shares acquired in the exchange will apply, and the holding period of
the shares exchanged will be tacked onto the holding period of the shares
acquired. Class B shareholders of a Series exercising the exchange privilege
will continue to be subject to such Series' CDSL schedule if such schedule is
higher or longer than the CDSL schedule relating to the new Class B shares. In
addition, Class B shares of a Series acquired by exchange will be subject to
such Series' CDSL schedule if such schedule is higher or longer than the CDSL
schedule relating to the Class B shares of the fund from which the exchange has
been made.
CLASS D SHARES. Class D shares are sold without an initial sales load but
are subject to a CDSL if the shares are redeemed within one year, an annual
distribution fee of up to .75%, and an annual service fee of up to .25%, of the
average daily net asset value of the Class D shares. SFSI will make a 1% payment
to dealers in respect of purchases of Class D shares. SFSI will make a 1%
payment to dealers in respect of purchases of Class D shares. Unlike Class B
shares, Class D shares do not automatically convert to Class A shares after
eight years.
CONTINGENT DEFERRED SALES LOAD. A CDSL will be imposed on redemptions of
Class B or Class D shares which were purchased during the preceding six years
(for Class B shares) or twelve months (for Class D shares). The amount of any
CDSL will initially be used by SFSI to defray the expense of the payment of 4%
(in the case of Class B shares) or 1% (in the case of Class D shares) made by it
to Service Organizations (as defined under "Administration, Shareholder Services
and Distribution Plans") at the time of sale. Pursuant to an agreement with FEP
Capital, L.P. ("FEP") to fund such payments in respect of Class B shares, SFSI
has assigned any Class B CDSL to FEP.
A CDSL of 1% will also be imposed on redemptions of Class A shares
purchased during the preceding eighteen months if such shares were acquired at
net asset value pursuant to the sales load schedule provided under "Class A
Shares--Initial Sales Load." Employee benefit plans eligible for net asset sales
as described above under "Special Programs" may be subject to a CDSL of 1% for
terminations at the plan level only, on redemptions of shares purchased within
eighteen months prior to plan termination.
The 1% CDSL normally imposed on redemptions of certain Class A shares
(i.e., those purchased during the proceeding eighteen months at net asset value
pursuant to the sales load schedule provided under "Class A Shares--Initial
Sales Load") will be waived on shares that were purchased through Dean Witter
Reynolds, Inc. ("Dean Witter") by certain Chilean institutional investors (i.e.
pension plans, insurance companies and mutual funds). Upon redemption of such
shares within an eighteen month period, Dean Witter will reimburse SFSI a pro
rata portion of the fee it received from SFSI at the time of the sale of such
shares.
To minimize the application of a CDSL to a redemption, shares acquired
pursuant to the investment of dividends and capital gain distributions (which
are not subject to a CDSL) will be redeemed first; followed by shares held for a
period of time longer than the applicable CDSL period. Shares held for the
longest period of time within the applicable CDSL period will then be redeemed.
Additionally, for those shares determined to be subject to a CDSL, the CDSL will
be assessed on the current net asset value or original purchase price, whichever
is less. No CDSL will be
32
<PAGE>
imposed on shares acquired through the investment of dividends or gain
distributions from any Class A, Class B or Class D shares of Seligman Mutual
Funds.
For example, assume an investor purchased 100 Class D shares in January at
a price of $10.00 per share. During the first year, 5 additional Class D shares
were acquired through investment of dividends and distributions. In January of
the following year, an additional 50 Class D shares were purchased at a price of
$12.00 per share. In March of that year, the investor chooses to redeem
$1,500.00 from the account which now holds 155 Class D shares with a total value
of $1,898.75 ($12.25 per share). The CDSL for this transaction would be
calculated as follows:
Total shares to be redeemed
(122.449 @ $12.25) as follows: ............. $1,500.00
=========
Dividend/Distribution shares
(5 @ $12.25) ............................... $ 61.25
Shares held more than 1 year
(100 @ $12.25) ............................. 1,225.00
Shares held less than 1 year subject
to CDSL (17.449 @ $12.25) .................. $ 213.75
---------
Gross proceeds of redemption ............... 1,500.00
Less CDSL (17.449 shares @ $12.00 =
$209.39 x 1% = $2.09) .................... (2.09)
---------
Net proceeds of redemption ................. $1,497.91
=========
For federal income tax purposes, the amount of the CDSL will reduce the
gain or increase the loss, as the case may be, on the amount recognized on the
redemption of shares.
The CDSL will be waived or reduced in the following instances:
(a) on redemptions following the death or disability (as defined in section
72(m)(7) of the Internal Revenue Code of 1986, as amended (the "Code")) of a
shareholder or beneficial owner; (b) in connection with (i) distributions from
retirement plans qualified under section 401(a) of the Code when such
redemptions are necessary to make distributions to plan participants (such
payments include, but are not limited to death, disability, retirement, or
separation of service), (ii) distributions from a custodial account under
section 403(b)(7) of the Code or an individual retirement account (an "IRA") due
to death, disability, minimum distribution requirements after attainment of age
701/2, or, for accounts established prior to January 1, 1998, attainment of age
591/2, and (iii) a tax-free return of an excess contribution to an IRA; (c) in
whole or in part, in connection with shares sold to current and retired
Directors of the Fund; (d) in whole or in part, in connection with shares sold
to any state, county, or city or any instrumentality, department, authority, or
agency thereof, which is prohibited by applicable investment laws from paying a
sales load or commission in connection with the purchase of shares of any
registered investment management company; (e) in whole or in part, in connection
with automatic cash withdrawals; (f) in connection with participation in the
Merrill Lynch Small Market 401(k) Program; and (g) in connection with the
redemption of shares of a Series if such Series is combined with another mutual
fund in the Seligman Group, or another similar reorganization transaction.
If, with respect to a redemption of any Class A, Class B or Class D shares
sold by a dealer, the CDSL is waived because the redemption qualifies for a
waiver as set forth above, the dealer shall remit to SFSI promptly upon notice
an amount equal to the payment or a portion of the payment made by SFSI at the
time of sale of such shares.
SFSI may from time to time assist dealers by, among other things, providing
sales literature to, and holding informational programs for the benefit of,
dealers' registered representatives. Dealers may limit the participation of
registered representatives in such informational programs by means of sales
incentive programs which may require the sale of minimum dollar amounts of
shares of the Seligman Mutual Funds. SFSI may from time to time pay a bonus or
other incentive to dealers that sell shares of the Seligman Mutual Funds. In
some instances, these bonuses or incentives may be offered only to certain
dealers which employ registered representatives who have sold or may sell a
significant amount of shares of the Fund and/or certain other mutual funds
managed by the Manager during a specified period of time. Such bonus or other
incentive
33
<PAGE>
may take the form of payment for travel expenses, including lodging, incurred in
connection with trips taken by qualifying registered representatives and members
of their families to places within or outside the United States. The cost to
SFSI of such promotional activities and payments will not exceed the amounts of
the sales loads retained by SFSI in respect of sales of shares of the Fund and
the other Seligman Mutual Funds effected through participating dealers and shall
be consistent with the Rules of the National Association of Securities Dealers,
Inc. as then in effect.
TELEPHONE TRANSACTIONS
A shareholder with telephone transaction privileges, and THE SHAREHOLDER'S
BROKER/DEALER REPRESENTATIVE, has the ability to effect the following
transactions via telephone: (i) redemption of Series shares with proceeds sent
to the address of record (up to $50,000 per day per fund account), (ii) exchange
of Series shares for shares of the same class of another Seligman Mutual Fund,
(iii) change of a dividend and/or capital gain distribution option, and (iv)
change of address. All telephone transactions are effected through Seligman Data
Corp. at (800) 221-2450.
FOR INVESTORS WHO PURCHASED SHARES BY COMPLETING AND SUBMITTING AN ACCOUNT
APPLICATION: Unless an election is made otherwise on the Account Application, a
shareholder and the shareholder's broker/dealer of record, as designated on the
Account Application, will automatically receive telephone services.
FOR INVESTORS WHO PURCHASE SHARES THROUGH A BROKER/DEALER: Telephone
services for a shareholder and the shareholder's representative may be elected
by completing a supplemental election form available from the broker/dealer of
record.
FOR ACCOUNTS REGISTERED AS IRAS: Telephone services will include only
exchanges or address changes.
FOR CORPORATIONS OR GROUP RETIREMENT PLANS: Telephone redemptions are not
permitted. Additionally, group retirement plans are not permitted to change a
dividend or gain distribution option. Group retirement plans that may allow plan
participants to place telephone exchanges directly with the Fund must first
provide a letter of authorization signed by the plan custodian or trustee, and
provide a telephone services election form signed by each plan participant.
All Seligman Mutual Fund accounts with the same account number (i.e.,
registered exactly the same) as an existing account, including any new fund in
which the shareholder invests in the future, will automatically include
telephone services if the existing account has telephone services. Telephone
services may also be elected at any time on a supplemental telephone services
election form.
For accounts registered jointly (such as joint tenancies, tenants in common
and community property registrations), each owner, by accepting or requesting
telephone services, authorizes each of the other owners to effect telephone
transactions on his or her behalf.
During times of drastic economic or market changes, a shareholder or the
shareholder's representative may experience difficulty in contacting Seligman
Data Corp. to request a redemption or exchange of Fund shares via telephone. In
these circumstances, the shareholder or the shareholder's representative should
consider using other redemption or exchange procedures. (See "Redemption of
Shares" below.) Use of these other redemption or exchange procedures may result
in the request being processed at a later time than if a telephone transaction
had been used, and a Series' net asset value may fluctuate during such periods.
The Fund and Seligman Data Corp. will employ reasonable procedures to
confirm that instructions communicated by telephone are genuine. These will
include: recording all telephone calls requesting account activity, requiring
that the caller provide certain requested personal and/or account information at
the time of the call for the purpose of establishing the caller's identity, and
sending a written confirmation of redemptions, exchanges or address changes to
the
34
<PAGE>
address of record each time activity is initiated by telephone. As long as the
Fund and Seligman Data Corp. follow instructions communicated by telephone that
were reasonably believed to be genuine at the time of their receipt, neither
they nor any of their affiliates will be liable for any loss to the shareholder
caused by an unauthorized transaction. In any instance where the Fund or
Seligman Data Corp. is not reasonably satisfied that instructions received by
telephone are genuine, the requested transaction will not be executed, and
neither they nor any of their affiliates will be liable for any losses which may
occur due to a delay in implementing the transaction. If the Fund or Seligman
Data Corp. does not follow the procedures described above, the Fund or Seligman
Data Corp. may be liable for any losses due to unauthorized or fraudulent
instructions. Telephone transactions must be effected through a representative
of Seligman Data Corp., i.e., requests may not be communicated via Seligman Data
Corp.'s automated telephone answering system. Shareholders, of course, may
refuse or cancel telephone services. Telephone services may be terminated by a
shareholder at any time by sending a written request to Seligman Data Corp.
TELEPHONE SERVICES MAY NOT BE ESTABLISHED BY A SHAREHOLDER'S BROKER/DEALER
WITHOUT THE WRITTEN AUTHORIZATION OF THE SHAREHOLDER. Written acknowledgment of
the addition of telephone services to an existing account or termination of
telephone services will be sent to the shareholder at the address of record.
REDEMPTION OF SHARES
A shareholder may redeem shares held in book credit ("uncertificated") form
without charge except a CDSL, if applicable, at any time by SENDING A WRITTEN
REQUEST to Seligman Data Corp., P.O. Box 3947, New York, NY 10008-3947; or if
the request is being sent by overnight delivery service to 100 Park Avenue, New
York, NY 10017. The redemption request must be signed by all persons in whose
name the shares are registered. A shareholder may redeem shares that are not in
book credit form without charge, except a CDSL, if applicable, by surrendering
certificates in proper form to the same address. Certificates should be sent
certified or registered mail. Return receipt is advisable; however, this may
increase mailing time. Share certificates must be endorsed for transfer or
accompanied by an endorsed stock power signed by all shareowners exactly as
their name(s) appear(s) on the account registration. The shareholder's letter of
instruction or endorsed stock power should specify the Series name, account
number, class of shares (A, B or D) and the number of shares or dollar amount to
be redeemed. The Fund cannot accept conditional redemption requests (i.e.,
requests to sell shares at a specific price or on a future date).
If the redemption proceeds are (i) $50,000 or more, (ii) to be paid to
someone other than the shareholder of record (regardless of the amount) or (iii)
to be mailed to other than the address of record (regardless of the amount), the
signature(s) of the shareholder(s) must be guaranteed by an eligible financial
institution including, but not limited to, the following: banks, trust
companies, credit unions, securities brokers and dealers, savings and loan
associations and participants in the Securities Transfer Association Medallion
Program (STAMP), the Stock Exchange Medallion Program (SEMP) or the New York
Stock Exchange Medallion Signature Program (MSP). The Fund reserves the right to
reject a signature guarantee where it is believed that the Fund will be placed
at risk by accepting such guarantee. A signature guarantee is also necessary in
order to change the account registration. Notarization by a notary public is not
an acceptable signature guarantee. ADDITIONAL DOCUMENTATION MAY BE REQUIRED BY
SELIGMAN DATA CORP. IN THE EVENT OF A REDEMPTION BY A CORPORATION, EXECUTOR,
ADMINISTRATOR, TRUSTEE, CUSTODIAN OR RETIREMENT PLAN. FOR FURTHER INFORMATION
WITH RESPECT TO REDEMPTION REQUIREMENTS, PLEASE CONTACT THE SHAREHOLDER SERVICES
DEPARTMENT OF SELIGMAN DATA CORP. FOR ASSISTANCE.
In the case of Class A shares (except for shares purchased without an
initial sales load due to the size of the purchase), and in the case of Class B
shares redeemed after six years and Class D shares redeemed after one year, a
shareholder will receive the net asset value per share next determined after
receipt of a request in good order. If Class A shares which were purchased
without an initial sales load because the purchase amount was $1,000,000 or more
are
35
<PAGE>
redeemed within eighteen months of purchase, a shareholder will receive the net
asset value per share next determined after receipt of a request in good order,
less a CDSL of 1% described under "Purchase of Shares--Class A Shares--InitiaL
Sales Load" above. If Class B shares are redeemed within six years of purchase,
a shareholder will receive the net asset value per share next determined after
receipt of a request in good order less the applicable CDSL as described under
"Purchase of Shares--Class B Shares" above. If Class D shares are redeemed
within one year of purchase, a shareholder will receive the net asset value per
share next determined after receipt of a request in good order, less a CDSL of
1% as described under "Purchase of Shares--Class D Shares" above.
A shareholder may "sell" shares to the Fund through an investment dealer
and, in that way, be certain, providing the order is timely, of receiving the
net asset value established at the end of the day on which the dealer is given
the repurchase order (less any applicable CDSL in the case of Class D shares).
The Fund makes no charge for this transaction, but the dealer may charge a
service fee. "Sell" or repurchase orders received from an authorized dealer
before the close of regular trading on the NYSE (normally, 4:00 p.m. Eastern
time) and received by SFSI, the repurchase agent, before the close of business
on the same day will be executed at the net asset value per share determined as
of the close of regular trading on the NYSE on that day, less any applicable
CDSL. Repurchase orders received from authorized dealers after the close of the
NYSE or not received by SFSI prior to the close of business, will be executed at
the net asset value determined as of the close of the NYSE on the next trading
day, less any applicable CDSL. Shares held in a "street name" account with a
broker/dealer may be sold to the Fund only through a broker/dealer.
TELEPHONE REDEMPTIONS. Telephone redemptions of uncertificated shares may
be made once per day, in an amount of up to $50,000 per fund account. Proceeds
will be sent to the address of record. Telephone redemption requests received by
Seligman Data Corp. at (800) 221-2450 by the close of regular trading on the
NYSE (normally, 4:00 p.m. Eastern time) will be processed at the Fund's net
asset value determined as of the close of business on that day. Redemption
requests by telephone will not be accepted within 30 days following an address
change. IRAs, group retirement plans, corporations and trusts for which the name
of the current trustee does not appear in the account registration are not
eligible for telephone redemptions. The Fund reserves the right to suspend or
terminate its telephone redemption service at any time without notice.
For more information about telephone redemptions, and the circumstances
under which shareholders may bear the risk of loss for a fraudulent transaction,
see "Telephone Transactions" above.
GENERAL. With respect to shares redeemed, a check for the proceeds, less
any applicable CDSL, will be sent to the shareholder's address of record within
seven calendar days after acceptance of the redemption order and will be made
payable to all of the registered owners on the account. With respect to shares
repurchased by the Fund, a check for the proceeds will be sent to the investment
dealer within seven days after acceptance of the repurchase order and will be
made payable to the investment dealer. Payment of redemption proceeds will be
delayed on redemptions of shares purchased by check (unless certified) until
Seligman Data Corp. receives notice that the check has cleared, which may be up
to 15 days from the credit of such shares to the shareholder's account. No
interest is paid on the redemption proceeds after the redemption but before the
funds are paid. The proceeds of a redemption or repurchase may be more or less
than the shareholder's cost.
The Fund reserves the right to redeem shares owned by a shareholder whose
investment in a Series has a value of less than a minimum specified by the
Fund's Board of Directors, which is presently $500. Shareholders would be sent a
notice before such redemption is processed stating that the value of their
investment in a Series is less than the specified minimum and that they have
sixty days to make an additional investment.
REINSTATEMENT PRIVILEGE. If a shareholder redeems Class A shares and then
decides to reinvest
36
<PAGE>
them, or to shift the investment to another Series of the Fund or to one of the
other Seligman Mutual Funds, a shareholder may, within 120 calendar days of the
date of the redemption, use all or any part of the proceeds of the redemption to
reinstate, free of an initial sales load, all or any part of the investment in
Class A shares of the Series or any of the other Seligman Mutual Funds. If a
shareholder redeems Class B or Class D shares and the redemption was subject to
a CDSL, the shareholder may reinstate the investment in shares of the same class
of the Series or of any of the other Seligman Mutual Funds within 120 calendar
days of the date of redemption and receive a credit for the applicable CDSL
paid. Such investment will be reinstated at the net asset value per share
established as of the close of the NYSE on the day the request is received.
Seligman Data Corp. must be informed that the purchase is a reinstated
investment. REINSTATED SHARES MUST BE REGISTERED EXACTLY AND BE OF THE SAME
CLASS AS THE SHARES PREVIOUSLY REDEEMED; AND THE FUND'S MINIMUM INITIAL
INVESTMENT AMOUNT MUST BE MET AT THE TIME OF REINSTATEMENT.
Generally, exercise of the Reinstatement Privilege does not alter the
federal income tax status of any capital gain realized on a sale of a Series'
shares, but to the extent that any shares are sold at a loss and the proceeds
are reinvested in shares of the same Series, some or all of the loss will not be
allowed as a deduction, depending upon the percentage of the proceeds
reinvested.
ADMINISTRATION, SHAREHOLDER
SERVICES AND DISTRIBUTION PLANS
Under each Series' Administration, Shareholder Services and Distribution
Plan (the "Plans"), each Series may pay to SFSI an administration, shareholder
services and distribution fee in respect of each Series' Class A, Class B and
Class D shares. Payments under the Plans may include, but are not limited to:
(i) compensation to securities dealers and other organizations ("Service
Organizations") for providing distribution assistance with respect to assets
invested in a Series, (ii) compensation to Service Organizations for providing
administration, accounting and other shareholder services with respect to
Series' shareholders, and (iii) otherwise promoting the sale of shares of each
Series, including paying for the preparation of advertising and sales literature
and the printing and distribution of such promotional materials and prospectuses
to prospective investors and defraying SFSI's costs incurred in connection with
its marketing efforts with respect to shares of the Series. The Manager, in its
sole discretion, may also make similar payments to SFSI from its own resources
which may include the management fee that the Manager receives from each Series.
Under the Plans, each Series reimburses SFSI for its expenses with respect
to Class A shares at an annual rate of up to .25% of the average daily net asset
value of such Series' Class A shares. It is expected that the proceeds from the
fee in respect of Class A shares will be used primarily to compensate Service
Organizations which enter into agreements with SFSI. Such Service Organizations
will receive from SFSI a continuing fee of up to .25%, on an annual basis,
payable quarterly, of the average daily net assets of a Series' Class A shares
attributable to the particular Service Organization for providing personal
services and/or the maintenance of shareholder accounts. The fee payable from
time to time is, within such limit, determined by the Directors of the Fund.
Under the Plans, each Series reimburses SFSI for its expenses with respect
to Class B and Class D shares at an annual rate of up to 1% of the respective
average daily net asset value of such Series' Class B and Class D shares.
Proceeds from a Series' Class B distribution fees are used to pay Service
Organizations a continuing fee of up to .25% on an annual basis of the average
net asset value of Class B shares attributable to particular Service
Organizations for providing personal service and/or the maintenance of
shareholder accounts and will also be used by SFSI to defray the expense of the
payment of 4% made by it to Service Organizations at the time of sale of Class B
shares. Proceeds from Class D distribution fees are used primarily to compensate
Service Organizations for administration, shareholder services and distribution
assistance (including a continuing fee of up to .25%, on an annual basis, of the
average daily net
37
<PAGE>
asset value of a Series' Class D shares attributable to particular Service
Organizations for providing personal service and/or the maintenance of
shareholder accounts) and will initially be used by SFSI to defray the expense
of the payment of 1% made by it to Service Organizations at the time of the sale
of Class D shares. The amounts expended by SFSI in any one year upon the initial
purchase of Class B and Class D shares may exceed the amounts received by it
from the Plan payments retained. Expenses of administration, shareholder
services and distribution of a Series' Class B and Class D shares in one fiscal
year may be paid from a Series' Class B and Class D Plan fees, respectively,
received in any other fiscal year.
The Plan as it relates to the Class A and Class D shares of the
International Fund was first approved by the Fund's Board of Directors on July
15, 1993 and by the shareholders of the International Fund on September 21,
1993. The Plan as it relates to the Class A, B, and D shares of the Emerging
Markets Growth Fund was first approved by the Fund's Board of Directors on March
21, 1996 and by the sole shareholder of each class of the Fund on May 10, 1996.
The Plan as it relates to the Class A and Class D shares of the Global Growth
Opportunities Fund was approved by the Fund's Board of Directors on September
21, 1995 and by the sole shareholder of the Global Growth Opportunities Fund on
October 30, 1995. The Plan as it relates to the Class A and Class D shares of
the Global Smaller Companies Fund was first approved by the Fund's Board of
Directors on July 16, 1992 and by the shareholders of the Global Smaller
Companies Fund on May 20, 1993. The Plan as it relates to the Class A and Class
D shares of the Global Technology Fund was first approved by the Directors on
March 17, 1994 and by the sole shareholder of the Global Technology Fund on May
20, 1994. The Plan as it relates to Class B shares was approved by the Directors
of the Fund on March 21, 1996. The Plans are reviewed by the Directors annually.
The total amounts paid for the fiscal year ended October 31, 1997 in respect of
each Series' Class A, Class B and Class D shares' average daily net assets
pursuant to the Plans were as follows:
% OF AVERAGE NET ASSETS
---------------------------------
SERIES CLASS A CLASS B CLASS D
------ ------- ------- -------
International Fund .20% 1.00% 1.00%
Emerging Markets
Growth Fund .23% 1.00% 1.00%
Global Growth
Opportunities Fund .24% 1.00% 1.00%
Global Smaller
Companies Fund .24% 1.00% 1.00%
Global Technology
Fund .25% 1.00% 1.00%
Seligman Services, Inc. ("SSI"), an affiliate of the Manager, is a limited
purpose broker/dealer. SSI acts as a broker/dealer of record for most
shareholder accounts that do not have a designated broker/dealer of record,
including all such shareholder accounts established after April 1, 1995, and
receives compensation for providing personal service and account maintenance to
such accounts of record.
EXCHANGE PRIVILEGE
A shareholder may, without charge, exchange at net asset value any part or
all of an investment in a Series for shares of another Series or for shares of
any of the other Seligman Mutual Funds. Exchanges may be made by mail, or by
telephone if the shareholder has telephone services.
Class A, Class B and Class D shares may be exchanged only for Class A,
Class B and Class D shares, respectively, of another Seligman Mutual Fund on the
basis of relative net asset value.
If shares that are subject to a CDSL are exchanged for shares of another
Seligman Mutual Fund, then for purposes of assessing the CDSL payable upon
disposition of the acquired shares, the applicable holding period shall be
reduced by the period for which the original shares were held.
Class B shareholders of the Fund exercising the exchange privilege will
continue to be subject to the Series' CDSL schedule if such schedule is higher
or longer than the CDSL schedule relating to the new
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Class B shares. In addition, Class B shares of the Series acquired through
exchange will be subject to the Series' CDSL schedule if such schedule is higher
or longer than the CDSL schedule relating to the Class B shares of the fund from
which such shares were exchanged.
Aside from the Series described in this Prospectus, the Seligman Mutual
Funds available under the Exchange Privilege are:
o SELIGMAN CAPITAL FUND, INC. seeks aggressive capital appreciation. Current
income is not an objective.
o SELIGMAN CASH MANAGEMENT FUND, INC. invests in high-quality money market
instruments. Shares are sold at net asset value.
o SELIGMAN COMMON STOCK FUND, INC. seeks favorable current income and long-term
growth of both income and capital value without exposing capital to undue risk.
o SELIGMAN COMMUNICATIONS AND INFORMATION FUND, INC. invests in shares of
companies in the communications, information and related industries to produce
capital gain. Income is not an objective.
o SELIGMAN FRONTIER FUND, INC. seeks to produce growth in capital value, income
may be considered but will only be incidental to the fund's investment
objective.
o SELIGMAN GROWTH FUND, INC. seeks longer-term growth in capital value and an
increase in future income.
o SELIGMAN HIGH INCOME FUND SERIES seeks high current income by investing in
debt securities. The Fund consists of the Seligman U.S. Government Securities
Series and the Seligman High-Yield Bond Series.
o SELIGMAN INCOME FUND, INC. seeks high current income and the possibility of
improvement of future income and capital value.
o SELIGMAN MUNICIPAL FUND SERIES, INC. consists of several State Series and a
National Series. The National Municipal Series seeks to provide maximum income
exempt from regular federal income taxes; individual state series, each seeking
to maximize income exempt from regular federal income taxes and from personal
income taxes in designated states, are available for Colorado, Georgia,
Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New York,
Ohio, Oregon and South Carolina. (Does not currently offer Class B shares.)
o SELIGMAN MUNICIPAL SERIES TRUST includes the Seligman California Municipal
Quality Series, the Seligman California Municipal High-Yield Series, the
Seligman Florida Municipal Series and the Seligman North Carolina Municipal
Series, each of which invests in municipal securities of its designated state.
(Does not currently offer Class B shares.)
o SELIGMAN NEW JERSEY MUNICIPAL FUND, INC. invests in investment grade New
Jersey municipal securities. (Does not currently offer Class B shares.)
o SELIGMAN PENNSYLVANIA MUNICIPAL FUND SERIES invests in investment grade
Pennsylvania municipal securities. (Does not currently offer Class B shares.)
o SELIGMAN VALUE FUND SERIES, INC. consists of the Seligman Large-Cap Value Fund
and the Seligman Small-Cap Value Fund, each of which seeks long-term capital
appreciation by investing in equity securities of value companies primarily
located in the U.S.
All permitted exchanges will be based on the net asset values of the
respective funds determined at the close of regular trading on the NYSE
(normally, 4:00 p.m. Eastern Time) on that day. Telephone requests for exchanges
must be received by the close of regular trading on the NYSE by Seligman Data
Corp. at (800) 221-2450, and will be processed as of the close of business on
that day. Requests received after the close of regular trading on the NYSE will
be processed at the net asset values per share calculated the following business
day. The registration of an account into which an exchange is made must be
identical to the registration of the account from which shares are exchanged.
When establishing a new account by an exchange of shares, the shares being
exchanged must have a value of at least the minimum initial investment required
by the mutual fund into which the
39
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exchange is being made. The method of receiving distributions, unless otherwise
indicated, will be carried over to the new fund account, as will telephone
services. Account services, such as Invest-A-Check(R) Service, Directed
Dividends and Automatic Cash Withdrawal Service will not be carried over tO the
new fund account unless specifically requested and permitted by the new fund.
Exchange orders may be placed to effect an exchange of a specific number of
shares, an exchange of shares equal to a specific dollar amount or an exchange
of all shares held. Shares for which certificates have been issued may not be
exchanged via telephone and may be exchanged only upon receipt of an exchange
request together with certificates representing shares to be exchanged in proper
form.
The Exchange Privilege via mail is generally applicable to investments in
group retirement plans, although some restrictions may apply. The terms of the
exchange offer described herein may be modified at any time; and not all of the
mutual funds in the Seligman Group are available to residents of all states.
Before making any exchange, a shareholder should contact an authorized
investment dealer or Seligman Data Corp. to obtain prospectuses of any of the
Seligman Mutual Funds.
A broker/dealer representative of record will be able to effect exchanges
on behalf of a shareholder only if the shareholder has telephone services or the
broker/dealer has entered into a Telephone Exchange Agreement with SFSI wherein
the broker/dealer must agree to indemnify SFSI and the Seligman Mutual Funds
from any loss or liability incurred as a result of the acceptance of telephone
exchange orders.
Written confirmation of all exchanges will be forwarded to the shareholder
to whom the exchanged shares are registered and a duplicate confirmation will be
sent to the dealer of record listed on the account. SFSI reserves the right to
reject any telephone exchange request. Any rejected telephone exchange order may
be processed by mail. For more information about telephone exchange privileges,
which, unless objected to, are assigned to certain shareholders automatically,
and the circumstances under which shareholders may bear the risk of loss for a
fraudulent transaction, see "Telephone Transactions" above.
Exchanges of shares are sales and may result in a gain or loss for federal
income tax purposes.
FURTHER INFORMATION ABOUT TRANSACTIONS IN THE SERIES
Because excessive trading (including short-term, "market timing" trading)
can hurt a Series' performance, the Fund, on behalf of a Series, may refuse any
exchange (1) from any shareholder account from which there have been two
exchanges in the preceding three month period, or (2) where the exchanged shares
equal in value the lesser of $1,000,000 or 1% of the Series' net assets. The
Fund may also refuse any exchange or purchase order from any shareholder account
if the shareholder or the shareholder's broker/dealer has been advised that
previous patterns of purchases and redemptions or exchanges have been considered
excessive. Accounts under common ownership or control, including those with the
same taxpayer ID number and those administered so as to redeem or purchase
shares based upon certain predetermined market indicators, will be considered
one account for this purpose. Additionally, the Fund reserves the right to
refuse any order for the purchase of shares.
DIVIDENDS AND GAIN DISTRIBUTIONS
Dividends payable from each Series' net investment income are distributed
at least annually. Payments vary in amount depending on income received from
portfolio securities and the cost of operations. Each Series distributes
substantially all of any taxable net long-term and short-term gain realized on
investments to shareholders at least annually. Dividends and gains distributions
will generally be taxable to shareholders in the year in which they are declared
by the Fund if paid before February 1 of the following year.
Shareholders may elect: (1) to receive both dividends and gain
distributions in shares; (2) to receive dividends in cash and gain distributions
in shares; or (3) to receive both dividends and gain distributions in cash.
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Cash dividends and gain distributions are paid by check and sent to the
shareholder's address of record.
In the case of prototype retirement plans, dividends and capital gain
distributions are reinvested in additional shares. Unless another election is
made, dividends and capital gain distributions will be credited to shareholder
accounts in additional shares. Shares acquired through a dividend or gain
distribution and credited to a shareholder's account are not subject to an
initial sales load or a CDSL. Dividends and gain distributions paid in shares
are invested on the payable date using the net asset value of the ex-dividend
date. Shareholders may elect to change their dividend and gain distribution
options by writing Seligman Data Corp. at the address listed below. If the
shareholder has telephone services, changes may also be telephoned to Seligman
Data Corp. between 8:30 a.m. and 6:00 p.m. Eastern time, by either the
shareholder or the broker/dealer of record on the account. For information about
telephone services, see "Telephone Transactions." These elections must be
received by Seligman Data Corp. before the record date for the dividend or
distribution in order to be effective for such dividend or gain distribution.
The per share dividends from net investment income on Class B and Class D
shares will be lower than the per share dividends on Class A shares as a result
of the higher distribution fees applicable with respect to Class B and Class D
shares. Per share dividends of the three classes may also differ as a result of
differing class expenses. Distributions of net capital gains, if any, will be
paid in the same amount for Class A, Class B and Class D shares. See "Purchase
of Shares--Valuation."
Shareholders exchanging shares of a mutual fund for shares of another
Seligman Mutual Fund will continue to receive dividends and gains as elected
prior to such exchange unless otherwise specified. In the event that a
shareholder redeems all shares in an account between the record date and the
payable date, the value of dividends or gain distributions declared and payable
will be paid in cash regardless of the existing election. A transfer or exchange
of all shares (closing an account), between the record date and payable date,
will result in the value of dividends or gain distributions being paid to the
new fund account in accordance with the option on the closed account, unless
Seligman Data Corp. is instructed otherwise.
FEDERAL INCOME TAXES
Each Series intends to continue to qualify as a regulated investment
company under the Code. For each year so qualified, each Series will not be
subject to federal income taxes on its net investment income and capital gains,
if any, realized during any taxable year, which it distributes to its
shareholders, provided that at least 90% of its net investment income and net
short-term capital gains are distributed to shareholders each year.
Dividends from net investment income and distributions from net short-term
capital gains are taxable as ordinary income to shareholders, whether received
in cash or reinvested in additional shares. To the extent designated as derived
from a Series' dividend income that would be eligible for the dividends received
deduction if the Series were not a regulated investment company, they are
eligible, subject to certain restrictions, for the 70% dividends received
deduction for corporations.
Distributions of net capital gains (i.e., the excess of net long-term
capital gains over any net short-term losses) are taxable as long-term capital
gain, whether received in cash or invested in additional shares, regardless of
how long shares have been held by a shareholder. Such distributions are not
eligible for the dividends received deduction allowed to corporate shareholders.
Shareholders receiving distributions in the form of additional shares issued by
a Series will be treated for federal income tax purposes as having
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received a distribution in an amount equal to the fair market value on the date
of distribution of the shares received. Individual shareholders will be subject
to federal income tax on distributions of net capital gains at a maximum rate of
28% if designated as derived from a Series' capital gains from property held for
more than one year and at a maximum rate of 20% if designated as derived from
the a Series' capital gains from property held for more than eighteen months.
Any gain or loss realized upon a sale or redemption of shares of a Series
by a shareholder who is not a dealer in securities will generally be treated as
a long-term capital gain or loss if the shares have been held for more than one
year and otherwise as a short-term capital gain or loss. Individual shareholders
will be subject to federal income tax on net capital gain at a maximum rate of
28% in respect of shares held for more than one year and at a maximum rate of
20% in respect of shares held for more than eighteen months. Net capital gain of
a corporate shareholder is taxed at the same rate as ordinary income. However,
if shares on which a long-term capital gain distribution has been received are
subsequently sold or redeemed and such shares have been held for six months or
less, any loss realized will be treated as long-term capital loss to the extent
that it offsets the long-term capital gain distribution. In addition, no loss
will be allowed on the sale or other disposition of shares of a Series if,
within a period beginning 30 days before the date of such sale or disposition
and ending 30 days after such date, the holder acquires (such as through
dividend reinvestment) securities that are substantially identical to the shares
of such Series.
In determining gain or loss on shares of a Series that are sold or
exchanged within 90 days after acquisition, a shareholder generally will not be
permitted to include in the tax basis attributable to such shares the sales load
incurred in acquiring such shares to the extent of any subsequent reduction of
the sales load by reason of the Exchange or Reinstatement Privilege offered by
the Fund. Any sales load not taken into account in determining the tax basis of
shares sold or exchanged within 90 days after acquisition will be added to the
shareholder's tax basis in the shares acquired pursuant to the Exchange or
Reinstatement Privilege.
A Series will generally be subject to an excise tax of 4% on the amount of
any income or capital gains, above certain permitted levels, distributed to
shareholders on a basis such that such income or gain is not taxable to
shareholders in the calendar year in which it was earned. Furthermore, dividends
declared in October, November or December payable to shareholders of record on a
specified date in such a month and paid in the following January will be treated
as having been paid by the Series and received by each shareholder in December.
Under this rule, therefore, shareholders may be taxed in one year on dividends
or distributions actually received in January of the following year.
Portions of a Series' investment income may be subject to foreign income
taxes withheld at source. Each Series intends to operate so as to meet the
requirements of the Code to enable it, subject to certain limitations imposed by
the Code, to "pass through" to its shareholders credit for foreign taxes paid,
but there can be no assurance that a Series will be able to do so. See "Taxes"
in the Statement of Additional Information.
UNLESS A SHAREHOLDER INCLUDES A CERTIFIED TAXPAYER IDENTIFICATION NUMBER
(SOCIAL SECURITY NUMBER FOR INDIVIDUALS) ON THE ACCOUNT APPLICATION AND
CERTIFIES THAT THE SHAREHOLDER IS NOT SUBJECT TO BACKUP WITHHOLDING, THE FUND IS
REQUIRED TO WITHHOLD AND REMIT TO THE U.S. TREASURY A PORTION OF DISTRIBUTIONS
AND OTHER REPORTABLE PAYMENTS TO THE SHAREHOLDER. THE RATE OF BACKUP WITHHOLDING
IS 31%. SHAREHOLDERS SHOULD BE AWARE THAT, UNDER REGULATIONS PROMULGATED BY THE
INTERNAL REVENUE SERVICE, THE FUND MAY BE FINED $50 ANNUALLY FOR EACH ACCOUNT
FOR WHICH A CERTIFIED TAXPAYER IDENTIFICATION NUMBER IS NOT PROVIDED. IN THE
EVENT THAT SUCH A FINE IS IMPOSED, THE FUND MAY CHARGE A SERVICE FEE OF UP TO
$50 THAT MAY BE DEDUCTED FROM THE SHAREHOLDER'S ACCOUNT AND OFFSET AGAINST ANY
UNDISTRIBUTED DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE FUND ALSO RESERVES
THE RIGHT TO CLOSE ANY ACCOUNT WHICH DOES NOT HAVE A CERTIFIED TAXPAYER
IDENTIFICATION NUMBER.
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Shareholders are urged to consult their tax advisors concerning the effect
of federal income taxes in their individual circumstances.
SHAREHOLDER INFORMATION
Shareholders will be sent reports semi-annually regarding the Fund. General
information about the Fund and its Series may be requested by writing the
Corporate Communications/Investor Relations Department, J. & W. Seligman & Co.
Incorporated, 100 Park Avenue, New York, NY 10017 or telephoning the Corporate
Communications/Investor Relations Department toll-free at (800) 221-7844 from
all continental United States or (212) 850-1864 the New York City area.
Information about shareholder accounts may be requested by writing Shareholder
Services, Seligman Data Corp. at the same address or by calling toll-free by
dialing (800) 221-2450 from all continental United States, or (212) 682-7600
outside the continental United States. Seligman Data Corp. may be telephoned
Monday through Friday (except holidays), between the hours of 8:30 a.m. and 6:00
p.m. Eastern time, and calls will be answered by a service representative.
24 HOUR TELEPHONE ACCESS IS AVAILABLE BY DIALING (800) 622-4597 ON A
TOUCHTONE PHONE, WHICH PROVIDES INSTANT ACCESS TO PRICE, YIELD, ACCOUNT BALANCE,
MOST RECENT TRANSACTION AND OTHER INFORMATION. IN ADDITION, ACCOUNT STATEMENTS
AND FORM 1099-DIV CAN BE ORDERED. TO INSURE PROMPT DELIVERY OF DISTRIBUTION
CHECKS, ACCOUNT STATEMENTS AND OTHER INFORMATION, SELIGMAN DATA CORP. SHOULD BE
NOTIFIED IMMEDIATELY IN WRITING OF ANY ADDRESS CHANGE. ADDRESS CHANGES MAY BE
TELEPHONED TO SELIGMAN DATA CORP. IF THE SHAREHOLDER HAS TELEPHONE SERVICES. FOR
MORE INFORMATION ABOUT TELEPHONE SERVICES, SEE "TELEPHONE TRANSACTIONS" ABOVE.
ACCOUNT SERVICES. Shareholders are sent confirmation of financial
transactions.
Other investor services are available. These include:
o INVEST-A-CHECK(R) SERVICE enables a shareholder to authorize additional
purchases of shares automatically bY electronic funds transfer from a checking
or savings account, if the bank that maintains the account is a member of the
Automated Clearing House ("ACH") or by preauthorized checks to be drawn on the
shareholder's checking account at regular monthly intervals in fixed amounts of
$100 or more per fund, or regular quarterly intervals in fixed amounts of $250
or more per fund, to purchase shares. Accounts may be established concurrently
with the Invest-A-Check(R) Service only if accompanied by a check for aT least
$100 in conjunction with the monthly investment option or a check for at least
$250 in conjunction with the quarterly investment option. For investments into
the Seligman Time Horizon MatrixSM Asset Allocation Program, the minimum amount
is $500 at regular monthly intervals or $1,000 at regular quarterly intervals.
By utilizing the Invest-a-Check(R) Service to establish an account, you are
agreeing to continue the service until the Fund's minimuM investment is met. If
you elect to cancel the service prior to meeting the minimum, your account may
be subject to closure. (See "Terms and Conditions.")
o AUTOMATIC DOLLAR-COST-AVERAGING SERVICE permits a shareholder of Seligman
Cash Management Fund to exchange a specified amount, at regular monthly
intervals in fixed amounts of $100 or more per fund, or regular quarterly
intervals in fixed amounts of $250 or more per fund, from shares of any class of
the Cash Management Fund into shares of the same class of any other Seligman
Mutual Fund registered in the same name. For exchanges into the Seligman Time
Horizon MatrixSM Asset Allocation Program, the minimum amount is $500 at regular
monthly intervals or $1,000 at regular quarterly intervals. The shareholder's
Cash Management Fund account must have a dollar value of at least $5,000 at the
initiation of the service. Exchanges will be made at the public offering price.
o DIVIDENDS FROM OTHER INVESTMENTS permits a shareholder to order dividends
payable on shares of other companies to be paid to and invested in additional
shares of a Series or another Seligman Mutual Fund. (Dividend checks must
include the shareholder's name, account number, the name of the fund
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and the class of shares in which the investment is to be made.) If the dividends
are to be invested in a new fund account, the first investment must meet the
required minimum purchase amount for such Fund.
o AUTOMATIC CD TRANSFER SERVICE permits a shareholder to instruct a bank to
invest the proceeds of a maturing bank certificate of deposit ("CD") in shares
of any designated Seligman Mutual Fund. Shareholders who wish to use this
service should contact Seligman Data Corp. or a broker to obtain the necessary
documentation. Banks may charge a penalty on CD assets withdrawn prior to
maturity. Accordingly, it will not normally be advisable to liquidate a CD
before its maturity.
o AUTOMATIC CASH WITHDRAWAL SERVICE permits payments in fixed amounts of
$50 or more at regular intervals to be made to a shareholder who owns or
purchases shares worth $5,000 or more held as book credits. Payments will be
sent by check to the address designated by the shareholder who has current bank
information on file with Seligman Data Corp. Holders of Class A shares purchased
at net asset value because the purchase amount was $1,000,000 or more should
bear in mind that withdrawals will be subject to a 1% CDSL if made within
eighteen months of purchase of such shares. Holders of Class B and Class D
shares may elect to use this service immediately, although certain withdrawals
may be subject to a CDSL. (See "Terms and Conditions.")
o DIRECTED DIVIDENDS allows a shareholder to pay dividends to another
person or to direct the payment of such dividends to another Seligman Mutual
Fund for purchase at net asset value. Dividends on Class A, Class B and Class D
shares may be directed only to shares of the same class of another Seligman
Mutual Fund.
o OVERNIGHT DELIVERY to service shareholder requests is available for a
$15.00 fee which will be deducted from a shareholder's account, if requested.
o COPIES OF ACCOUNT STATEMENTS will be sent to each shareholder free of
charge for the current year and most recent prior year. Copies of year-end
statements for prior years are available for a fee of $10.00 per year, per
account, with a maximum charge of $150 per account. Statement requests should be
forwarded, along with a check, to Seligman Data Corp.
TAX-DEFERRED RETIREMENT PLANS. Shares of each Series may be purchased for
all types of tax-deferred retirement plans. SFSI makes available plans, plan
forms and custody agreements for:
--Individual Retirement Accounts (IRAs);
--Savings Incentive Match Plans for Employees (SIMPLE IRAs);
--Simplified Employee Pension Plans (SEPs);
--Section 401(k) Plans for corporations and their employees;
--Section 403(b)(7) Plans for employees of public school systems and
certain non-profit organizations who wish to make deferred compensation
arrangements; and
--Money Purchase Pension and Profit Sharing Plans for sole proprietorships,
corporations and partnerships.
These types of plans may be established only upon receipt of a written
application form. The Fund may register an IRA investment for which an account
application has not been received as an ordinary taxable account.
For more information, write Retirement Plan Services, Seligman Data Corp.,
100 Park Avenue, New York, NY 10017 or telephone toll-free (800) 445-1777
44
<PAGE>
from all continental United States. You also may receive information through an
authorized dealer.
ADVERTISING A SERIES' PERFORMANCE
From time to time, a Series advertises its "total return" and "average
annual total return", each of which is calculated separately for Class A, Class
B and Class D shares. THESE FIGURES ARE BASED ON HISTORICAL EARNINGS AND ARE NOT
INTENDED TO INDICATE FUTURE PERFORMANCE. The "total return" shows what an
investment in shares of Class A, Class B and Class D of a Series would have
earned over a specified period of time (for example, one, five and ten year
periods or since inception) assuming the payment of the maximum front-end sales
load, if any (or CDSL upon redemption, if applicable), when the investment was
made and that all distributions and dividends paid by the Series were reinvested
on the reinvestment dates during the period. The "average annual total return"
is the annual rate required for initial payment to grow to the amount which
would be received at the end of the specified period (one, five and ten year
periods or since inception of the Series), i.e., the average annual compound
rate of return. Total return and average annual total return may also be
presented without the effect of an initial sales load or CDSL, as applicable.
The total return and average annual total return for Class A shares of the
International Fund quoted from time to time are not adjusted for the period
prior to September 21, 1993 for the annual administration, shareholder services
and distribution fee. Such fee, if reflected, would reduce the performance
quoted. The waiver by the Manager and Subadviser of their fees and reimbursement
of certain expenses during certain periods (as set forth under "Financial
Highlights" herein) would positively affect the performance results quoted.
From time to time, reference may be made in advertising or promotional
material to performance information, including mutual fund rankings, prepared by
Lipper Analytical Services, Inc. ("Lipper"), an independent reporting service
that monitors the performance of mutual funds. In calculating the total return
of a Series' Class A, Class B and Class D shares, the Lipper analysis assumes
investment of all dividends and distributions paid but does not take into
account applicable sales loads. A Series may also refer in advertisements or in
other promotional material to articles, comments, listings and columns in the
financial press pertaining to the Series' performance. Examples of such
financial and other press publications include BARRON'S, BUSINESS WEEK,
CDA/WEISENBERGER MUTUAL FUND INVESTMENT REPORT, CHRISTIAN SCIENCE MONITOR,
FINANCIAL PLANNING, FINANCIAL TIMES, FINANCIAL WORLD, FORBES, FORTUNE,
INDIVIDUAL INVESTOR, INVESTMENT ADVISOR, INVESTORS BUSINESS DAILY, KIPLINGER'S,
LOS ANGELES TIMES, MONEY MAGAZINE, MORNINGSTAR, INC., PENSIONS AND INVESTMENTS,
SMART MONEY, THE NEW YORK TIMES, USA TODAY, U.S. NEWS AND WORLD REPORT, THE WALL
STREET JOURNAL, WASHINGTON POST, WORTH MAGAZINE and YOUR MONEY.
ORGANIZATION AND CAPITALIZATION
The International Fund, the Emerging Markets Growth Fund, the Global Growth
Opportunities Fund, the Global Smaller Companies Fund and the Global Technology
Fund are each separate series of Seligman Henderson Global Fund Series, Inc., an
open-end investment company incorporated under the laws of the state of Maryland
on November 22, 1991. The name of the Fund was changed from Seligman
International Fund Series Inc., to its present name on May 25, 1993. The
Directors of the Fund are authorized to issue, create and classify shares of
capital stock in separate series without further action by shareholders. To
date, shares in the five Series described herein have been authorized. Shares of
capital stock of each Series have a par value $.001 and are divided into three
classes. Each share of a Series' Class A, Class B and Class D common stock is
equal as to earnings, assets and voting privileges, except that each class bears
its own separate distribution and, potentially, certain other class expenses and
has exclusive voting rights with respect to any matter to which a separate vote
of any class is required by the 1940 Act or Maryland law. The Fund has adopted a
plan (the "Multiclass Plan") pursuant to Rule 18f-3 under the 1940 Act
permitting the issuance and sale of multiple classes of common stock. In
accordance with the Articles of Incorporation, the Board of Directors may
authorize the
45
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creation of additional classes of common stock with such characteristics as are
permitted by the Multiclass Plan and Rule 18f-3. The 1940 Act requires that
where more than one class exists, each class must be preferred over all other
classes in respect of assets specifically allocated to such class. All shares
have non-cumulative voting rights for the election of directors. Each
outstanding share is fully paid and non-assessable, and each is freely
transferable. There are no liquidation, conversion or preemptive rights.
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TERMS AND CONDITIONS
GENERAL ACCOUNT INFORMATION
Investments will be made in as many shares of a Series, including fractions
to the third decimal place, as can be purchased at the net asset value plus a
sales load, if applicable, at the close of business on the day payment is
received. If a check in payment of a purchase of shares is dishonored for any
reason, Seligman Data Corp. will cancel the purchase and may redeem additional
shares, if any, held in the shareholder's account in an amount sufficient to
reimburse the Fund for any loss it may have incurred and charge a $10.00 return
check fee. Shareholders will receive dividends from investment income and any
distributions from gain realized on investments in shares or in cash according
to the option elected. Dividend and gain options may be changed by notifying
Seligman Data Corp. These option changes must be received by Seligman Data Corp.
before the record date for the dividend or distribution to be effective for such
dividend or distribution. Stock certificates will not be issued, unless
requested. Replacement stock certificates and certain waiver of probate
procedures will be subject to a surety fee.
INVEST-A-CHECK(R) SERVICE
The Invest-A-Check(R) Service is available to all shareholders. The
application is subject to acceptance by thE shareholder's bank and Seligman Data
Corp. The electronic funds transfer ("ACH debit") or preauthorized check in the
amount specified will be invested in the shareholder's account on the fifth day
(unless otherwise specified) of each month (or on the prior business day if such
day of the month falls on a weekend or holiday) in which an investment is
scheduled and invested at the close of business on the same date. By utilizing
the Invest-A-Check(R) Service to establisH an account, you are agreeing to
continue the Service until the Fund's minimum investment amount is met. If you
elect to cancel the Service prior to meeting the minimum, your account may be
subject to closure. If an ACH debit or preauthorized check is not honored by the
shareholder's bank, or if the value of shares held falls below the required
minimum, the Invest-A-Check(R) Service may be suspended. In the event that a
check or ACH debit is returned uncollectable, Seligman DatA Corp. will cancel
the purchase, redeem shares held in the shareholder's account for an amount
sufficient to reimburse the Fund for any loss it may have incurred as a result,
and charge a $10.00 return check fee. This fee will be deducted from the
shareholder's account. The Invest-A-Check(R) Service may be reinstated upon
written request indicating that the causE of interruption has been corrected.
The Invest-A-Check(R) Service may be terminated by the shareholder or Seligman
DatA Corp. at any time by written notice. The shareholder agrees to hold the
Fund and its agents free from all liability which may result from acts done in
good faith and pursuant to these terms. Instructions for establishing
Invest-A-Check(R) Service are given on the Account Application. In the event the
shareholder exchanges all of the shares from one Seligman Mutual Fund to
another, the Invest-A-Check(R) Service will be terminated in the Seligman Mutual
Fund that was closed as a result of the exchange of all shares and the
shareholder must re-apply for the Invest-A-Check(R) Service in the Seligman
Mutual Fund into which the exchange was made. In the event of a partial
exchange, the Invest-A-Check(R) Service will be continued, subject to the above
conditions, in the Seligman Mutual Fund from which the exchange was made.
Accounts established in conjunction with the Invest-A-Check(R) Service must be
accompanied by a check for at least $100 in connection with the monthly
investment option or a check for at least $250 in connection with the quarterly
investment option. If the shareholder uses the Invest-A-Check(R) Service to make
an IRA or group retirement plan investment, the purchase will be credited as a
current year contribution.
AUTOMATIC CASH WITHDRAWAL SERVICE
A sufficient number of full and fractional shares will be redeemed to
provide the amount required for a scheduled payment and any applicable CDSL.
Redemptions will be made at the net asset value at the close of business on the
specific day designated by the shareholder of each month (or on the prior
business day if the day specified falls on a weekend or holiday), less, in the
case of Class B or Class D shares, any applicable CDSL. Automatic withdrawals of
Class A shares which were purchased at net asset value because the purchase
amount was $1,000,000 or more will be subject to a CDSL if made within eighteen
months of purchase of such shares. Under this Service, a Class B, or Class D
shareholder who requests both dividends and capital gain distributions in
additional shares may withdraw up to 12%, or 10%, respectively, of the value of
the shareholder's fund account (at the time of election) per annum, without the
imposition of a CDSL. A minimum payment amount of $50 per cycle is needed to
establish this Service. A shareholder may change the amount of scheduled
payments or may suspend payments by written notice to Seligman Data Corp. at
least ten days prior to the effective date of such a change or suspension. The
Service may be terminated by the shareholder or Seligman Data Corp. at any time
by written notice. It will be terminated upon proper notification of the death
or legal incapacity of the shareholder. This Service is considered terminated in
the event a withdrawal of shares, other than to make scheduled withdrawal
payments, reduces the value of shares remaining on deposit to less than $5,000.
Continued payments in excess of dividend income invested will reduce and
ultimately exhaust capital. Withdrawals, concurrent with purchases of shares of
this or any other investment company, will be disadvantageous because of the
payment of duplicative sales loads, if applicable. For this reason, additional
purchases of Fund shares are discouraged when the Withdrawal Service is in
effect.
LETTER OF INTENT--CLASS A SHARES ONLY
Seligman Financial Services, Inc. will hold in escrow shares equal to 5% of
the minimum purchase amount specified. Dividends and distributions on the
escrowed shares will be paid directly to the shareholder or credited to the
shareholder's account. All shares held in escrow will be deposited into the
shareholder's account in book credit form, or, if requested, delivered to the
shareholder upon completion of the Letter of Intent. The shareholder may include
toward completion of a Letter of Intent the total asset value of shares of the
Seligman Mutual Funds on which an initial sales load was paid as of the date of
the Letter. If the total amount invested within the thirteen-month period does
not equal or exceed the specified minimum purchase, the shareholder will be
requested to pay the difference between the amount of the sales load paid and
the amount of the sales load applicable to the total purchase made. If, within
20 days following the mailing of a written request, the shareholder has not paid
this additional sales load to Seligman Financial Services, Inc., sufficient
escrowed shares will be redeemed for payment of the additional sales load.
Shares remaining in escrow after this payment will be released to the
shareholder's account. The intended purchase amount may be increased at any time
during the thirteen-month period by filing a revised Agreement for the same
period, provided that the Dealer furnishes evidence that an amount representing
the reduction in sales load under the new Agreement, which becomes applicable on
purchases already made under the original Agreement, will be refunded to the
Fund and that the required additional escrowed shares will be purchased by the
shareholder.
Shares of Seligman Cash Management Fund, Inc. which have been acquired by an
exchange of shares of another Seligman Mutual Fund on which there is an initial
sales load may be taken into account in completing a Letter of Intent, or for
Right of Accumulation. However, shares of the Seligman Cash Management Fund
which have been purchased directly may not be used for purposes of determining
reduced sales loads on additional purchases of the other Seligman Mutual Funds.
47
<PAGE>
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
- --------------------------------------------------------------------------------
Seligman Henderson International Fund
Seligman Henderson Emerging Markets Growth Fund
Seligman Henderson Global Growth
Opportunities Fund
Seligman Henderson Global Smaller
Companies Fund
Seligman Henderson Global Technology Fund
================================================================================
100 Park Avenue
New York, New York 10017
INVESTMENT MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, New York 10017
GENERAL DISTRIBUTOR
Seligman Financial Services, Inc.
100 Park Avenue
New York, New York 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, New York 10017
PORTFOLIO SECURITIES CUSTODIAN
Morgan Stanley Trust Company (NY)
One Pierrepont Plaza
Brooklyn, New York 11201
GENERAL COUNSEL
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
EQSH1 3/98
================================================================================
PROSPECTUS
Seligman Henderson International Fund
Seligman Henderson Emerging Markets Growth Fund
Seligman Henderson Global Growth Opportunities Fund
Seligman Henderson Global Smaller
Companies Fund
Seligman Henderson Global Technology Fund
March 1, 1998
================================================================================
A CAPITAL APPRECIATION FUND
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
March 1, 1998
SELIGMAN HENDERSON INTERNATIONAL FUND
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND series of
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
100 Park Avenue
New York, New York 10017
New York City Telephone (212) 850-1864
Toll Free Telephone: (800) 221-2450 - all continental United States
For Retirement Plan Information - Toll-Free Telephone: (800) 445-1777
This Statement of Additional Information expands upon and supplements
the information contained in the current Prospectus, dated March 1, 1998, which
includes the Seligman Henderson International Fund (the "International Fund"),
the Seligman Henderson Emerging Markets Growth Fund (the "Emerging Markets
Growth Fund"), the Seligman Henderson Global Growth Opportunities Fund (the
"Global Growth Opportunities Fund"), the Seligman Henderson Global Smaller
Companies Fund (the "Global Smaller Companies Fund") and the Seligman Henderson
Global Technology Fund (the "Global Technology Fund"), each a separate series
(individually, a "Series") of Seligman Henderson Global Fund Series, Inc. (the
"Fund"). It should be read in conjunction with the Fund's Prospectus, which may
be obtained by writing or calling the Fund at the above address or telephone
numbers. This Statement of Additional Information, although not in itself a
Prospectus, is incorporated by reference into the Prospectus in its entirety.
Each Series of the Fund offers three classes of shares. Class A shares
may be purchased at net asset value plus a sales load of up to 4.75%. Class A
shares purchased in an amount of $1,000,000 or more are sold without an initial
sales load but are subject to a contingent deferred sales load ("CDSL") of 1%
(of the current net asset value or original purchase price, whichever is less)
if such shares are redeemed within eighteen months of purchase. Class B shares
may be purchased at net asset value and are subject to a CDSL, if applicable, in
the following amount (as a percentage of the current net asset value or the
original purchase price, whichever is less, if redemption occurs within the
indicated number of years of purchase of such shares: 5% (less than 1 year), 4%
(1 year but less than 2 years), 3% (2 but less than 4 years), 2% (4 but less
that 5 years), 1% (5 but less than 6 years) and 0% (6 or more years). Class B
shares automatically convert to Class A shares after approximately eight years,
resulting in lower ongoing fees. Shares purchased through reinvestment of
dividends and distributions on Class B shares also will convert automatically to
Class A shares along with the underlying shares on which they were earned. Class
D shares may be purchased at net asset value and are subject to a CDSL of 1% if
redeemed within one year of purchase.
TABLE OF CONTENTS
Page
Investment Objectives, Policies and Risks......... 2
Investment Limitations............................ 5
Directors and Officers............................ 6
Management and Expenses........................... 11
Administration, Shareholder Services
And Distribution Plans.......................... 12
Portfolio Transactions............................ 13
Purchase And Redemption Of Series Shares.......... 14
Distribution Services............................. 16
Page
Valuation......................................... 18
Taxes............................................. 19
Performance....................................... 20
General Information............................... 23
Financial Statements.............................. 24
Appendix A........................................ 25
Appendix B........................................ 28
Appendix C........................................ 30
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Each Series' Class A, Class B and Class D shares represent an identical
legal interest in the investment portfolio of such Series and have the same
rights except for certain class expenses and except that Class B and Class D
shares bear higher distribution fees that generally will cause the Class B and
Class D shares to have higher expense ratios and pay lower dividends than Class
A shares. Each Class has exclusive voting rights with respect to its
distribution plan. Although holders of Class A, Class B and Class D shares have
identical legal rights, the different expenses borne by each Class will result
in different net asset values and dividends. The three classes also have
different exchange privileges.
INVESTMENT OBJECTIVES, POLICIES AND RISKS
The International Fund, the Emerging Markets Growth Fund, the Global
Growth Opportunities Fund, the Global Smaller Companies Fund and the Global
Technology Fund are each separate Series of Seligman Henderson Global Fund
Series, Inc. The International Fund seeks to achieve long-term capital
appreciation primarily by making investments in securities of non-U.S. issuers.
The Emerging Markets Growth Fund seeks long-term capital appreciation by
investing at least 65% of its net assets in equity securities of companies in
emerging markets. The Global Growth Opportunities Fund seeks long-term capital
appreciation primarily by investing in equity securities of companies that have
the potential to benefit from global economic or social trends. The Global
Smaller Companies Fund seeks to achieve long-term capital appreciation primarily
by making global investments in securities of emerging companies, i.e.,
companies with small- to medium-market capitalization. The Global Technology
Fund seeks to achieve long-term capital appreciation by making global
investments of at least 65% of its assets in securities of companies with
business operations in technology and technology-related industries. There can
be no assurance that a Series will achieve its investment objective. The
following information regarding the Series' investment policies supplements the
information contained in the Prospectus.
PURCHASING PUT OPTIONS ON SECURITIES. A Series may purchase put options to
protect its portfolio holdings in an underlying security against a decline in
market value. This hedge protection is provided during the life of the put
option since a Series, as holder of the put option, can sell the underlying
security at the put exercise price regardless of any decline in the underlying
security's market price. In order for a put option to be profitable, the market
price of the underlying security must decline sufficiently below the exercise
price to cover the premium and transaction costs. By using put options in this
manner, a Series will reduce any profit it might otherwise have realized in the
underlying security by the premium paid for the put option and by transaction
costs.
Because a purchased put option gives the purchaser a right and not an
obligation, the purchaser is not required to exercise the option. If the
underlying position incurs a gain, a Series would let the put option expire
resulting in a reduced profit on the underlying security equal to the cost of
the put option. The cost of the put option is limited to the premium plus
commission paid. A Series' maximum financial exposure will be limited to these
costs.
A Series may purchase options listed on public exchanges as well as
over-the-counter. Options listed on an exchange are generally considered very
liquid. OTC options are considered less liquid, and therefore, will only be
considered where there is not a comparable listed option. Because options will
be used solely for hedging, and due to their relatively low cost and short
duration, liquidity is not a significant concern.
A Series' ability to engage in option transactions may be limited by
tax considerations.
FOREIGN CURRENCY TRANSACTIONS. A forward foreign currency exchange contract is
an agreement to purchase or sell a specific currency at a future date and at a
price set at the time the contract is entered into. A Series will generally
enter into forward foreign currency exchange contracts to fix the U.S. dollar
value of a security it has agreed to buy or sell for the period between the date
the trade was entered into and the date the security is delivered and paid for,
or to hedge the U.S. dollar value of securities it owns.
A Series may enter into a forward contract to sell or buy the amount of
a foreign currency it believes may experience a substantial movement against
another currency (including the U.S. dollar). In this case the contract would
approximate the value of some or all of a Series' portfolio securities
denominated in such foreign currency. If appropriate, a Series may hedge all or
part of its foreign currency exposure through the use of a basket of currencies
or a proxy currency where such currencies or proxy currency act as an effective
proxy for other currencies. In these circumstances, a Series may enter into a
forward contract where the amount of the foreign currency to be sold exceeds the
value of the securities denominated in such currency. The use of this basket
hedging technique may be more efficient and economical than entering into
separate forward contracts for each currency held in a Series. The precise
matching of the forward contract amounts and the value of the securities
involved will not generally be
-2-
<PAGE>
possible since the future value of such securities in foreign currencies will
change as a consequence of market movement in the value of those securities
between the date the forward contract is entered into and the date it matures.
The projection of short-term currency market movement is extremely difficult,
and the successful execution of a short-term hedging strategy is highly
uncertain. Under certain circumstances, a Series may commit a substantial
portion or the entire value of its assets to the consummation of these
contracts. The Subadviser will consider the effect a substantial commitment of
its assets to forward contracts would have on the investment program of each
Series and its ability to purchase additional securities.
Except as set forth above and immediately below, a Series will also not
enter into such forward contracts or maintain a net exposure to such contracts
where the consummation of the contracts would oblige a Series to deliver an
amount of foreign currency in excess of the value of such Series' portfolio
securities or other assets denominated in that currency. A Series, in order to
avoid excess transactions and transaction costs, may nonetheless maintain a net
exposure to forward contracts in excess of the value of its portfolio securities
or other assets denominated in that currency provided the excess amount is
"covered" by cash or liquid, high-grade debt securities, denominated in any
currency, having a value at least equal at all times to the amount of such
excess. Under normal circumstances, consideration of the prospect for currency
parities will be incorporated into the longer-term investment decisions made
with regard to overall diversification strategies. However, the Subadviser
believes that it is important to have the flexibility to enter into such forward
contracts when it determines that the best interests of a Series will be served.
At the maturity of a forward contract, a Series may either sell the
portfolio security and make delivery of the foreign currency, or it may retain
the security and terminate its contractual obligation to deliver the foreign
currency by purchasing an "offsetting" contract obligating it to purchase, on
the same maturity date, the same amount of the foreign currency.
As indicated above, it is impossible to forecast with absolute
precision the market value of portfolio securities at the expiration of the
forward contract. Accordingly, it may be necessary for a Series to purchase
additional foreign currency on the spot market (and bear the expense of such
purchase) if the market value of the security is less than the amount of foreign
currency such Series is obligated to deliver and if a decision is made to sell
the security and make delivery of the foreign currency. Conversely, it may be
necessary to sell on the spot market some of the foreign currency received upon
the sale of the portfolio security if its market value exceeds the amount of
foreign currency a Series is obligated to deliver. However, a Series may use
liquid, high-grade debt securities, denominated in any currency, to cover the
amount by which the value of a forward contract exceeds the value of the
securities to which it relates.
If a Series retains the portfolio security and engages in an offsetting
transaction, such Series will incur a gain or a loss (as described below) to the
extent that there has been movement in forward contract prices. If a Series
engages in an offsetting transaction, it may subsequently enter into a new
forward contract to sell the foreign currency. Should forward prices decline
during the period between a Series' entering into a forward contract for the
sale of a foreign currency and the date it enters into an offsetting contract
for the purchase of the foreign currency, such Series will realize a gain to the
extent the price of the currency it has agreed to sell exceeds the price of the
currency it has agreed to purchase. Should forward prices increase, a Series
will suffer a loss to the extent the price of the currency it has agreed to
purchase exceeds the price of the currency it has agreed to sell.
The Series' dealing in forward foreign currency exchange contracts will
generally be limited to the transactions described above. However, each Series
reserves the right to enter into forward foreign currency contracts for
different purposes and under different circumstances. Of course, a Series is not
required to enter into forward contracts with regard to its foreign
currency-denominated securities and will not do so unless deemed appropriate by
the Subadviser. It also should be realized that this method of hedging against a
decline in the value of a currency does not eliminate fluctuations in the
underlying prices of the securities. It simply establishes a rate of exchange at
a future date. Additionally, although such contracts tend to minimize the risk
of loss due to a decline in the value of the hedged currency, at the same time,
they tend to limit any potential gain which might result from an increase in the
value of that currency.
Investors should be aware of the costs of currency conversion. Although
foreign exchange dealers do not charge a fee for conversion, they do realize a
profit based on the difference (the "spread") between the prices at which they
are buying and selling various currencies. Thus, a dealer may offer to sell a
foreign currency to a Series at one rate, while offering a lesser rate of
exchange should such Series desire to resell that currency to the dealer.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
commercial banks and with broker/dealers to invest cash for the short-term. A
repurchase agreement is an agreement under which the Fund acquires a money
market instrument, generally a U.S. Government obligation, subject to resale at
an agreed upon price and date. Such resale price reflects an agreed upon
interest rate effective for the period of time the instrument is held by the
Fund and is unrelated to the interest rate
-3-
<PAGE>
on the instrument. Repurchase agreements could involve certain risks in the
event of bankruptcy or other default by the seller, including possible delays
and expenses in liquidating the securities underlying the agreement, decline in
value and the underlying securities and loss of interest. Repurchase agreements
usually are for short periods, such as one week or less, but may be for longer
periods. However, as a matter of fundamental policy, the Fund will not enter
into repurchase agreements of more than one week's duration if more than 10% of
its net assets would be so invested. The Fund to date has not entered into any
repurchase agreements and has no present intention of doing so in the future.
BORROWING. Each Series may from time to time borrow money for temporary,
extraordinary or emergency purposes in an amount up to 5% (10% for the Emerging
Markets Growth Fund) of its total assets from banks at prevailing interest rates
and invest the funds in additional securities. A Series' borrowings are limited
so that immediately after such borrowing the value of the Series' assets
(including borrowings) less its liabilities (not including borrowings) is at
least three times the amount of the borrowings. Should a Series, for any reason,
have borrowings that do not meet the above test, then within three business
days, such Series must reduce such borrowings so as to meet the foregoing test.
Under these circumstances, a Series may have to liquidate portfolio securities
at a time when it is disadvantageous to do so. Gains made with additional funds
borrowed will generally cause the net asset value of a Series' shares to rise
faster than could be the case without borrowings. Conversely, if investment
results fail to cover the cost of borrowings, the net asset value of a Series
could decrease faster than if there had been no borrowings.
LENDING OF PORTFOLIO SECURITIES. A Series may lend portfolio securities to
certain institutional borrowers of securities and may invest the cash collateral
and obtain additional income or receive an agreed upon amount of interest from
the borrower. Loans made by a Series will generally be short-term. Loans are
subject to termination at the option of each Series or the borrower. A Series
may pay reasonable administrative and custodial fees in connection with a loan
and may pay a negotiated portion of the interest earned on the cash or
equivalent collateral to the borrower or placing broker. A Series does not have
the right to vote securities on loan, but would terminate the loan and regain
the right to vote if that were considered important with respect to the
investment.
ILLIQUID SECURITIES. A Series may invest up to 15% of its net assets in illiquid
securities, including restricted securities (i.e., securities not readily
marketable without registration under the Securities Act of 1933 (the "1933
Act")) and other securities that are not readily marketable. Each Series does
not currently expect to invest more than 5% of its assets in such securities. A
Series may purchase restricted securities that can be offered and sold to
"qualified institutional buyers" under Rule 144A of the 1933 Act, and the
Manager, acting pursuant to procedures approved by the Fund's Board of
Directors, may determine, when appropriate, that specific Rule 144A securities
are liquid and not subject to the 15% limitation on illiquid securities. Should
this determination be made, the Manager, acting pursuant to such procedures,
will carefully monitor the security (focusing on such factors, among others, as
trading activity and availability of information) to determine that the Rule
144A security continues to be liquid. It is not possible to predict with
assurance the level of liquidity in the market for securities. This investment
practice could have the effect of increasing the level of illiquidity in the
Series to the extent that qualified institutional buyers become for a time
uninterested in purchasing Rule 144A securities.
Except as otherwise specifically noted above and below, the Series'
investment policies are not fundamental and the Board of Directors of the Fund
may change such policies without the vote of a majority of a Series' outstanding
voting securities (as defined below).
PORTFOLIO TURNOVER. A Series may generally change its portfolio investments at
any time in accordance with the Subadviser's appraisal of factors affecting any
particular issuer or the market or economy in general. Each Series anticipates
that its annual rate of portfolio turnover will not exceed 100%. High portfolio
turnover involves correspondingly greater transactions costs and a possible
increase in short-term capital gains or losses. The portfolio turnover rates for
the International Fund for the fiscal years ended October 31, 1997 and 1996 were
83.11% and 55.71%, respectively. The portfolio turnover rates for the Emerging
Markets Growth Fund for the fiscal year ended October 31, 1997 and for the
period May 28, 1996 (commencement of operations) through October 31, 1996 were
84.09% and 12.24%, respectively. The portfolio turnover rates for the Global
Growth Opportunities Fund for the fiscal years ended October 31, 1997 and 1996
were 79.32% and 31.44%, respectively. The portfolio turnover rates for the
Global Smaller Companies Fund for the fiscal years ended October 31, 1997 and
1996 were 57.24% and 45.38%, respectively. The portfolio turnover rates for the
Global Technology Fund for the fiscal years ended October 31, 1997 and 1996 were
94.06% and 73.00%, respectively.
-4-
<PAGE>
INVESTMENT LIMITATIONS
Under each Series' fundamental policies, which cannot be changed except
by vote of a majority of the outstanding voting securities of each Series, each
Series may not:
1. As to 75% of the value of its total assets, invest more than 5% of its
total assets, at market value, in the securities of any one issuer (except
securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities).
2. Invest more than 25% of its total assets, at market value, in the
securities of issuers principally engaged in the same industry (except
securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities).
3. Own more than 10% of the outstanding voting securities of any issuer, or
more than 10% of any class of securities of one issuer.
4. Invest more than 5% of the value of its total assets, at market value, in
the securities of issuers which, with their predecessors, have been in
business less than three years; provided, however, that securities
guaranteed by a company that (including predecessors) has been in
operation at least three continuous years shall be excluded from this
limitation.
5. Purchase securities of open-end or closed-end investment companies, except
as permitted by the Investment Company Act of 1940, as amended (the "1940
Act"), and other applicable law.
6. Invest in warrants if, at the time of acquisition, the investment in
warrants, valued at the lower of cost or market value, would exceed 5% of
such Series net assets. For purposes of this restriction, warrants
acquired by a Series in units or attached to securities may be deemed to
have been purchased without cost.
7. Make loans of money or securities other than (a) through the purchase of
securities in accordance with a Series' investment objective, (b) through
repurchase agreements and (c) by lending portfolio securities in an amount
not to exceed 33 1/3% of any Series' total assets.
8. Issue senior securities or borrow money except from banks and then in
amounts not in excess of 5% (10% for Emerging Markets Growth Fund) of its
total assets, as described in the Prospectus and on page 4 herein.
9. Buy any securities or other property on margin (except for such short-term
credits as are necessary for the clearance of transactions).
10. Invest in companies for the purpose of exercising control or management.
11. Underwrite securities of other issuers except to the extent that a Series
may be deemed an underwriter when purchasing or selling portfolio
securities.
12. Purchase or retain securities of any issuer (other than the shares of the
Series) if to the Fund's knowledge, those officers and directors of the
Fund and the officers and directors of the Manager or Subadviser, who
individually own beneficially more than 1/2 of 1% of the outstanding
securities of such issuer, together own beneficially more than 5% of such
outstanding securities.
13. Purchase or sell real estate (although it may purchase securities secured
by real estate or interests therein, or issued by companies or investment
trusts that invest in real estate or interests therein).
14. Make short sales except short sales against-the-box.
Under the 1940 Act, a "vote of a majority of the outstanding voting
securities" of a Series means the affirmative vote of the lesser of (l) more
than 50% of the outstanding shares of the Series or (2) 67% or more of the
shares present at a shareholders' meeting if more than 50% of the outstanding
shares of the Series are represented at the meeting in person or by proxy.
-5-
<PAGE>
DIRECTORS AND OFFICERS
Directors and officers of the Fund, together with information as to their
principal business occupations during the past five years are shown below. Each
Director who is an "interested person" of the Fund, as defined in the 1940 Act,
is indicated by an asterisk. Unless otherwise indicated, their addresses are 100
Park Avenue, New York, NY 10017.
WILLIAM C. MORRIS* Director, Chairman of the Board, Chief Executive
(59) Officer and Chairman of the Executive Committee
Chairman, J. & W. Seligman & Co. Incorporated,
investment managers and advisers; Chairman and Chief
Executive Officer, the Seligman Group of Investment
Companies; Chairman, Seligman Financial Services,
Inc., broker/dealer; Seligman Services, Inc.,
broker/dealer; and Carbo Ceramics Inc., ceramic
proppants for oil and gas industry; Director,
Seligman Data Corp., shareholder service agent;
Kerr-McGee Corporation, diversified energy company;
and Sarah Lawrence College; and a Member of the
Board of Governors of the Investment Company
Institute; formerly, President, J. & W. Seligman &
Co. Incorporated; Chairman, Seligman Advisors, Inc.,
advisers; Seligman Holdings, Inc., holding company;
Seligman Securities, Inc., broker/dealer and J. & W.
Seligman Trust Company, trust company; and Director,
Daniel Industries Inc., manufacturer of oil and gas
metering equipment.
BRIAN T. ZINO* Director, President and Member of the Executive
(45) Committee
Director and President, J. & W. Seligman & Co.
Incorporated, investment managers and advisers;
President (with the exception of Seligman Quality
Municipal Fund, Inc. and Seligman Select Municipal
Fund, Inc.), and Director or Trustee, the Seligman
Group of Investment Companies; Chairman, Seligman
Data Corp., shareholder service agent; Director,
Seligman Financial Services, Inc., broker/dealer;
Seligman Services, Inc., broker/dealer; and Seligman
Henderson Co., advisers; formerly, Director,
Seligman Advisors, Inc., advisers; Seligman
Securities, Inc., broker/dealer and J. & W. Seligman
Trust Company, trust company.
RICHARD R. SCHMALTZ* Director and Member of the Executive Committee
(57)
Managing Director, Director of Investments, J. & W.
Seligman & Co. Incorporated; Director of Seligman
Henderson Co. and Trustee Emeritus of Colby College;
formerly, Director, Investment Research at Neuberger
& Berman from May 1993 to September 1996 and
Executive Vice President of McGlinn Capital from
July 1987 to September 1993.
JOHN R. GALVIN Director
(68)
Dean, Fletcher School of Law and Diplomacy at Tufts
University; Director or Trustee, the Seligman Group
of Investment Companies; Chairman, American Council
on Germany; a Governor of the Center for Creative
Leadership; Director, USLIFE Corporation, life
insurance; Raytheon Co., electronics; National
Defense University; and the Institute for Defense
Analysis; and formerly, Ambassador, U.S. State
Department for negotiations in Bosnia; Distinguished
Policy Analyst at Ohio State University and Olin
Distinguished Professor of National Security Studies
at the United States Military Academy. From June,
1987 to June, 1992, he was the Supreme Allied
Commander, Europe and the Commander-in-Chief, United
States European Command. Tufts University, Packard
Avenue, Medford, MA 02155
-6-
<PAGE>
ALICE S. ILCHMAN Director
(62)
President, Sarah Lawrence College; Director or
Trustee, the Seligman Group of Investment Companies;
and the Committee for Economic Development;
Chairman, The Rockefeller Foundation, charitable
foundation; formerly, Trustee, The Markle
Foundation, philanthropic organization; and
Director, NYNEX, telephone company; and
International Research and Exchange Board,
intellectual exchanges.
Sarah Lawrence College, Bronxville, New York 10708
FRANK A. McPHERSON Director
(64)
Director, various corporations; Director or Trustee,
the Seligman Group of Investment Companies;
Director, Kimberly-Clark Corporation, consumer
products; Bank of Oklahoma Holding Company; Oklahoma
City Chamber of Commerce; Baptist Medical Center;
Oklahoma Chapter of the Nature Conservancy; Oklahoma
Medical Research Foundation; and National Boys and
Girls Clubs of America; Chairman, Oklahoma City
Public Schools Foundation; and Member of the
Business Roundtable and National Petroleum Council;
formerly, Chairman of the Board and Chief Executive
Officer, Kerr-McGee Corporation, energy and
chemicals.
123 Robert S. Kerr Avenue, Oklahoma City, OK 73102
JOHN E. MEROW Director
(68)
Retired Chairman and Senior Partner, Sullivan &
Cromwell, law firm; Director or Trustee, the
Seligman Group of Investment Companies; Director,
Commonwealth Industries, Inc.; the Foreign Policy
Association; Municipal Art Society of New York; the
U.S. Council for International Business; The New
York and Presbyterian Hospital; Chairman, American
Australian Association; The New York and
Presbyterian Hospital Care Network, Inc.;
Vice-Chairman, U.S.-New Zealand Council; Member of
the American Law Institute and Council on Foreign
Relations.
125 Broad Street, New York, NY 10004
BETSY S. MICHEL Director
(55)
Attorney; Director or Trustee, the Seligman Group of
Investment Companies; Trustee, Geraldine R. Dodge
Foundation, charitable foundation; and Chairman of
the Board of Trustees of St. George's School
(Newport, RI); formerly, Director, the National
Association of Independent Schools (Washington,
D.C.), education.
St. Bernard's Road, P.O. Box 449, Gladstone, NJ
07934
JAMES C. PITNEY Director
(71)
Retired Partner, Pitney, Hardin, Kipp & Szuch, law
firm; Director or Trustee, the Seligman Group of
Investment Companies; Director, Public Broadcasting
Service (PBS); formerly, Director, Public Service
Enterprise Group, public utility.
Park Avenue at Morris County, P.O. Box 1945,
Morristown, NJ 07962-1945
JAMES Q. RIORDAN Director
(70)
Director, various corporations; Director or Trustee,
the Seligman Group of Investment Companies; The
Houston Exploration Company; The Brooklyn Museum;
The Brooklyn Union Gas Company; the Committee for
Economic Development; Dow Jones & Co. Inc. and
Public Broadcasting Service; formerly, Co-Chairman
of the Policy Council of the Tax Foundation;
Director, Tesoro Petroleum Companies, Inc.; and
Director and President, Bekaert Corporation.
675 Third Avenue, Suite 3004, New York, NY 10017
-7-
<PAGE>
ROBERT L. SHAFER Director
(65)
Director, various corporations; Director or Trustee,
the Seligman Group of Investment Companies and
USLIFE Corporation, life insurance; formerly, Vice
President, Pfizer Inc., pharmaceuticals.
230 Park Avenue, New York, NY 10169 - 0079
JAMES N. WHITSON Director
(62)
Executive Vice President, Chief Operating Officer
and Director, Sammons Enterprises, Inc.; Director or
Trustee, the Seligman Group of Investment Companies;
C-SPAN; and CommScope, Inc., manufacturer of coaxial
cables; formerly, Director, Red Man Pipe and Supply
Company, piping and other materials.
300 Crescent Court, Suite 700, Dallas, TX 75202
PETER BASSETT Vice President and Portfolio Manager
(42)
Portfolio Manager, Seligman Henderson Co., advisers;
and Henderson plc, investment management; formerly,
Portfolio Manager, Touche Remnant & Co., investment
management.
IAIN C. CLARK Vice President and Portfolio Manager
(47)
Managing Director and Chief Investment Officer,
Seligman Henderson Co., advisers; Director and
Senior Portfolio Manager, Henderson plc, investment
management.
NITIN MEHTA Vice President and Portfolio Manager
(37)
Portfolio Manager, Seligman Henderson Co., advisers;
and Henderson plc, investment management; formerly,
Head of Currency Management and Derivatives, Quorum
Capital Management; Investment Officer,
International Finance Corp., investment management;
and Director of Equities, Shearson Lehman Global
Asset Management.
BRIAN ASHFORD-RUSSELL Vice President and Portfolio Manager
(39)
Portfolio Manager, Seligman Henderson Co., advisers;
and Henderson plc, investment management; formerly,
Portfolio Manager, Touche Remnant & Co., investment
management.
PAUL H. WICK Vice President and Portfolio Manager
(35)
Director and Managing Director (formerly, Vice
President, Investment Officer), J. & W. Seligman &
Co. Incorporated, investment managers and advisers;
Vice President and Portfolio Manager, two other
open-end investment companies with the Seligman
Group of Investment Companies; Portfolio Manager,
Seligman Henderson Co., advisers; formerly, Senior
Vice President and Portfolio Manager, Chuo Trust,
JWS Advisors, Inc., advisers.
ARSEN MRAKOVCIC Vice President and Portfolio Manager
(32)
Managing Director (formerly, Vice President,
Investment Officer), J. & W. Seligman & Co.
Incorporated, investment managers and advisers; Vice
President and Portfolio Manager, one other open-end
investment company with the Seligman Group of
Investment Companies; formerly, Portfolio Assistant,
J. & W. Seligman & Co. Incorporated.
-8-
<PAGE>
LAWRENCE P. VOGEL Vice President
(41)
Senior Vice President, Finance, J. & W. Seligman &
Co. Incorporated, investment managers and advisers;
Seligman Financial Services, Inc., broker/dealer;
and Seligman Data Corp., shareholder service agent;
Vice President, the Seligman Group of Investment
Companies; and Seligman Services, Inc.,
broker/dealer; and Treasurer, Seligman Henderson
Co., advisers; formerly, Senior Vice President,
Finance, Seligman Advisors, Inc., advisers; and
Treasurer, Seligman Holdings, Inc., holding company.
FRANK J. NASTA Secretary
(33)
Senior Vice President, Law and Regulation and
Corporate Secretary, J. & W. Seligman & Co.
Incorporated, investment managers and advisers;
Corporate Secretary, the Seligman Group of
Investment Companies; Seligman Financial Services,
Inc.; broker/dealer; Seligman Henderson Co.,
advisers; Seligman Services, Inc., broker/dealer;
and Seligman Data Corp., shareholder service agent;
formerly, Senior Vice President, Law and Regulation
and Corporate Secretary, Seligman Advisors, Inc.,
advisers; and an attorney at Seward & Kissel, law
firm.
THOMAS G. ROSE Treasurer
(40)
Treasurer, the Seligman Group of Investment
Companies and Seligman Data Corp., shareholder
service agent.
The Executive Committee of the Board of Directors of the Fund acts on
behalf of the Board between meetings to determine the value of securities and
assets owned by the Series of the Fund for which no market valuation is
available and to elect or appoint officers of the Fund to serve until the next
meeting of the Board.
<TABLE>
<CAPTION>
Compensation Table
------------------
Pension or Total Compensation
Aggregate Retirement Benefits from Fund and
Compensation Accrued as part of Fund Complex Paid
Position with Fund from Fund (1) Fund Expenses to Directors (1)(2)
------------------ ------------- ------------- -------------------
<S> <C> <C> <C>
William C. Morris, Director and Chairman N/A N/A N/A
Brian T. Zino, Director and President N/A N/A N/A
Richard R. Schmaltz, Director N/A N/A N/A
Ronald T. Schroeder, Director** N/A N/A N/A
Fred E. Brown, Director Emeritus*** N/A N/A N/A
John R. Galvin, Director $4,930.92 N/A $67,000.00
Alice S. Ilchman, Director 4,842.00 N/A 65,000.00
Frank A. McPherson, Director 4,895.23 N/A 66,000.00
John E. Merow, Director 4,842.01 N/A 65,000.00
Betsy S. Michel, Director 4,930.95 N/A 67,000.00
James C. Pitney, Director 4,788.85 N/A 64,000.00
James Q. Riordan, Director 4,877.75 N/A 66,000.00
Robert L. Shafer, Director 4,877.73 N/A 66,000.00
James N. Whitson, Director 4,948.42(d) N/A 67,000.00(d)
</TABLE>
- -----------------------
(1) For the Fund's fiscal year ended October 31, 1997. Effective January 16,
1998, the per meeting fee for Directors was increased by $1,000, which is
allocated among all Funds in the Fund Complex.
-9-
<PAGE>
(2) As defined in the Fund's Prospectus, the Seligman Group of Investment
Companies consists of eighteen investment companies.
** Retired May 15, 1997.
*** Retired as Director and designated Director Emeritus on March 20, 1997.
(d) Deferred.
The Fund has a compensation arrangement under which outside directors
may elect to defer receiving their fees. Under this arrangement, interest will
be accrued on the deferred balances. The annual cost of such interest will be
included in the Directors' fees and expenses, and the accumulated balance
thereof will be included in other liabilities in the Series' financial
statements. The total amount of deferred compensation (including interest)
payable to Mr. Whitson as of October 31, 1997 was $16,118. Messrs. Merow and
Pitney no longer defer current compensation; however, they have accrued deferred
compensation in the amounts of $14,047 and $1,780, respectively, as of October
31, 1997. The Fund has applied for and received exemptive relief that would
permit a director who has elected deferral of his or her fees to choose a rate
of return equal to either (i) the interest rate on short-term Treasury bills, or
(ii) the rate of return on the shares of any of the investment companies advised
by the manager, as designated by the director. The Fund may, but is not
obligated to, purchase shares of such investment companies to hedge its
obligations in connection with this deferral arrangement.
Directors and officers of the Fund are also directors and officers of
some or all of the other investment companies in the Seligman Group.
As of February 2, 1998, directors and officers of the Fund as a group
owned directly or indirectly 67,290 Class A shares, or 2.53% of the outstanding
shares of the Class A capital stock of the International Fund; 73,543 Class A
shares, or 1.33% of the outstanding shares of the Class A capital stock of the
Emerging Markets Growth Fund; and less than 1% of the outstanding shares of the
Class A capital stock of each of the Global Growth Opportunities Fund, Global
Smaller Companies Fund and the Global Technology Fund. No directors or officers
owned Class B or Class D shares of any Series of the Fund as of such date.
As of February 2, 1998, 300,691 Class A shares of the International
Fund which represented 5.52% of such Series' capital stock and 11.29% of such
Series' Class A capital stock then outstanding; 1,011,208 Class A shares of the
Emerging Markets Growth Fund, which represented 7.78% of such Series' capital
stock and 18.23% of such Series' Class A capital stock then outstanding;
4,620,897 Class A shares of the Global Growth Opportunities Fund, which
represented 22.57% of such Series' capital stock and 40.56% of such Series'
Class A capital stock then outstanding; 6,947,472 Class A shares of the Global
Smaller Companies Fund, which represented 10.43% of such Series' capital stock
and 26.27% of such Series' Class A capital stock then outstanding; and 8,711,149
Class A shares of the Global Technology Fund, which represented 13.19% of such
Series' capital stock and 20.19% of such Series' Class A capital stock then
outstanding were registered in the name of MLPF&S for the Sole Benefit of its
Customers, 4800 Deer Lake Drive East, Jacksonville, FL 32246.
As of February 2, 1998, 1,578,751 Class B shares of the Emerging
Markets Growth Fund, which represented 12.14% of such Series' capital stock and
42.57% shares of such Series' Class B capital stock then outstanding, and
6,182,534 Class B shares of the Global Smaller Company Fund, which represented
9.28% of such Series' capital stock and 36.93% of such Series' Class B capital
stock then outstanding, were registered in the name of MLPF&S for the Sole
Benefit of its Customers, 4800 Deer Lake Drive East, Jacksonville, FL 32246.
As of February 2, 1998, 877,886 Class D shares of the International
Fund, which represented 16.12% of such Series' capital stock and 36.81% of such
Series' Class D capital stock then outstanding; 1,367,852 Class D shares of the
Emerging Markets Growth Fund, which represented 10.52% of such Series' capital
stock and 36.54% of such Series' Class D capital stock then outstanding;
3,622,046 Class D shares of the Global Growth Opportunities Fund, which
represented 17.69% of such Series' capital stock and 51.90% of such Series'
Class D capital stock then outstanding; 11,454,309 Class D shares of the Global
Smaller Companies Fund, which represented 17.20% of such Series' capital stock
and 48.91% of such Series' Class D capital stock then outstanding; and 5,705,282
Class D shares of the Global Technology Fund, which represented 8.64% of such
Series' capital stock and 31.06% of such Series' D capital stock then
outstanding were registered in the name of MLPF&S for the Sole Benefit of its
Customers, 4800 Deer Lake Drive East, Jacksonville, FL 32246.
-10-
<PAGE>
MANAGEMENT AND EXPENSES
Under the Management Agreement dated March 19, 1992, subject to the
control of the Board of Directors, J. & W. Seligman & Co. Incorporated (the
"Manager") administers the business and other affairs of each Series. The
Manager provides the Fund with such office space, administrative and other
services and executive and other personnel as are necessary for Fund operations.
The Manager pays all of the compensation of Directors of the Fund who are
employees, consultants and/or directors of the Manager and of the officers and
employees of the Fund. The Manager also provides senior management for Seligman
Data Corp., the Fund's shareholder service agent. The Manager receives a fee for
its services, 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 .90%,
respectively, are paid to Seligman Henderson Co. (the "Subadviser"). The
following chart indicates the management fees paid by each Series as well as the
percentage such fee represents of a Series' average daily net assets for fiscal
1997, 1996 and 1995 or for such periods that a Series has been operational.
<TABLE>
<CAPTION>
Annualized % of
Management Fee Paid Average Daily Net Assets
------------------- ------------------------
<S> <C> <C>
International Fund
Year ended 10/31/97 $ 993,229 1.00%
Year ended 10/31/96 963,308 1.00
Year ended 10/31/95 796,849** .96**
Emerging Markets Growth Fund
Year ended 10/31/97 $1,110,307 1.25%
5/28/96* - 10/31/96 66,785** .45**
Global Growth Opportunities Fund
Year ended 10/31/97 $1,903,374 1.00%
Year ended 10/31/96 1,318,826 1.00
Global Smaller Companies Fund
Year ended 10/31/97 $9,494,033 1.00%
Year ended 10/31/96 4,279,964 1.00
Year ended 10/31/95 1,148,074 1.00
Global Technology Fund
Year ended 10/31/97 $8,488,410 1.00%
Year ended 10/31/96 7,054,213 1.00
Year ended 10/31/95 2,127,260 1.00
</TABLE>
- --------------------------------
* Commencement of operations.
** During the year/period, the Manager and Subadviser, at their discretion,
elected to waive a portion of their fees.
Each Series of the Fund pays all its expenses other than those assumed
by the Manager, or the Subadviser, including brokerage commissions;
administration, shareholder services and distribution fees; fees and expenses of
independent attorneys and auditors; taxes and governmental fees, including fees
and expenses of qualifying the Series' shares under federal and state securities
laws; cost of stock certificates and expenses of repurchase or redemption of
shares; expenses of printing and distributing reports, notices and proxy
materials to shareholders; expenses of printing and filing reports and other
documents with governmental agencies; expenses of shareholders' meetings;
expenses of corporate data processing and related services; shareholder record
keeping and shareholder account services fees and disbursements of custodians;
expenses of disbursing dividends and distributions; fees and expenses of
Directors of the Fund not employed by (or serving as a Director of) the Manager
or its affiliates; insurance premiums; and extraordinary expenses such as
litigation expenses. The Fund's expenses are allocated between the Series in a
manner determined by the Directors to be fair and equitable.
The Management Agreement provides that the Manager will not be liable
to the Fund for any error of judgment or mistake of law, or for any loss arising
out of any investment, or for any act or omission in performing its duties under
the Agreement, except for willful misfeasance, bad faith, gross negligence, or
reckless disregard of its obligations and duties under the Agreement.
The Management Agreement was initially approved by the Board of
Directors of the Fund at a meeting held on March 19, 1992 and by the
shareholders on May 20, 1993. The Management Agreement will continue in effect
until December 31 of each year if (1) such continuance is approved in the manner
required by the 1940 Act (i.e., by a vote of a majority of the Board of
Directors or of the outstanding voting securities of the Series and by a vote of
a majority of the Directors who are not parties to the
-11-
<PAGE>
Management Agreement or interested persons of any such party) and (2) if the
Manager has not notified the Fund at least 60 days prior to December 31 of any
year that it does not desire such continuance. The Management Agreement may be
terminated by the Fund, without penalty, on 60 days' written notice to the
Manager and will terminate automatically in the event of its assignment. The
Fund has agreed to change its name upon termination of the Management Agreement
if continued use of the name would cause confusion in the context of the
Manager's business.
The Manager is a successor firm to an investment banking business
founded in 1864 which has thereafter provided investment services to
individuals, families, institutions and corporations. On December 29, 1988, a
majority of the outstanding voting securities of the Manager was purchased by
Mr. William C. Morris and a simultaneous recapitalization of the Manager
occurred. See Appendix B for further history of the Manager.
Under the Subadvisory Agreement dated March 19, 1992, the Subadviser
supervises and directs the investment of the assets of the Fund's Series,
including making purchases and sales of portfolio securities consistent with
each Series' investment objective and policies. For these services the
Subadviser is paid, by the Manager, a fee as described above. The Subadvisory
Agreement was approved by the Board of Directors of the Fund at a meeting held
on March 19, 1992 and by shareholders of the Fund on May 20, 1993. The
Subadvisory Agreement will continue in effect until December 31 of each year if
such continuance is approved in the manner required by the 1940 Act (by a vote
of a majority of the Board of Directors or of the outstanding voting securities
of the Series and by a vote of a majority of the Directors who are not parties
to the Subadvisory Agreement or interested persons of any such party) and (2) if
the Subadviser shall not have notified the Manager in writing at least 60 days
prior to December 31 of any year that it does not desire such continuance. The
Subadvisory Agreement may be terminated at any time by the Fund, on 60 days'
written notice to the Subadviser. The Subadvisory Agreement will terminate
automatically in the event of its assignment or upon the termination of the
Management Agreement.
The Subadviser is a New York general partnership formed by the Manager and
Henderson International, Inc., a controlled affiliate of Henderson plc.
Henderson plc, headquartered in London, is one of the largest independent money
managers in Europe. See Appendix C for further history of the Subadviser. On
February 10, 1998, AMP Ltd. made an offer to purchase all of the outstanding
shares of Henderson plc. The offer is subject to various conditions. The Manager
and the Fund's Board of Directors are monitoring the status of the offer and its
implications for the Subadviser's relationship with the Fund.
Officers, directors and employees of the Manager are permitted to engage in
personal securities transactions, subject to the Manager's Code of Ethics (the
"Ethics Code"). The Ethics Code proscribes certain practices with regard to
personal securities transactions and personal dealings, provides a framework for
the reporting and monitoring of personal securities transactions by the
Manager's Compliance Officer, and sets forth a procedure of identifying, for
disciplinary action, those individuals who violate the Ethics Code. The Ethics
Code prohibits each of the officers, directors and employees (including all
portfolio managers) of the Manager from purchasing or selling any security that
the officer, director or employee knows or believes (i) was recommended by the
Manager for purchase or sale by any client, including the Fund, within the
preceding two weeks, (ii) has been reviewed by the Manager for possible purchase
or sale within the preceding two weeks, (iii) is being purchased or sold by any
client, (iv) is being considered by a research analyst, (v) is being acquired in
a private placement, unless prior approval has been obtained from the Manager's
Compliance Officer, or (vi) is being acquired during an initial or secondary
public offering. The Ethics Code also imposes a strict standard of
confidentiality and requires portfolio managers to disclose any interest they
may have in the securities or issuers that they recommend for purchase by any
client.
The Ethics Code also prohibits (i) each portfolio manager or member of an
investment team from purchasing or selling any security within seven calendar
days of the purchase or sale of the security by a client's account (including
investment company accounts) for which the portfolio manager or investment team
manages and (ii) each employee from engaging in short-term trading (a purchase
and sale or vice-versa within 60 days). Any profit realized pursuant to either
of these prohibitions must be disgorged.
Officers, directors and employees are required, except under very limited
circumstances, to engage in personal securities transactions through the
Manager's order desk. The order desk maintains a list of securities that may not
be purchased due to a possible conflict with clients. All officers, directors
and employees are also required to disclose all securities beneficially owned by
them on December 31 of each year.
ADMINISTRATION, SHAREHOLDER SERVICES AND DISTRIBUTION PLANS
Each Series of the Fund has adopted an Administration, Shareholder
Services and Distribution Plan for each Class (the "Plan") in accordance with
Section 12(b) of the 1940 Act and Rule 12b-1 thereunder.
-12-
<PAGE>
The Plan with respect to the International Fund was originally approved
on July 15, 1993 by the Board of Directors of the Fund, including a majority of
the Directors who are not "interested persons" (as defined in the 1940 Act) and
who have no direct or indirect financial interest in the operation of the Fund
("Qualified Directors") and by the shareholders of such Series on September 21,
1993. The Plan with respect to the Emerging Markets Growth Fund was originally
approved on March 21, 1996 by the Board of Directors of the Fund, including a
majority of the Qualified Directors, and by the sole shareholder of each Class
of the Fund on May 10, 1996. The Plan with respect to the Global Growth
Opportunities Fund was originally approved on September 21, 1995 by the Board of
Directors of the Fund, including a majority of the Qualified Directors, and by
the sole shareholder of such Series on October 30, 1995. The Plan with respect
to the Global Smaller Companies Fund was originally approved on July 16, 1992 by
the Board of Directors of the Fund, including a majority of the Qualified
Directors. Amendments to the Plan in respect of Class D shares of the Global
Smaller Companies Fund were approved by the Board of Directors of the Fund,
including a majority of the Qualified Directors, on March 18, 1993 and the
amended Plan was approved by the shareholders of the Global Smaller Companies
Fund on May 20, 1993. The Plan with respect to the Global Technology Fund was
originally approved on March 17, 1994 by the Board of Directors of the Fund,
including a majority of the Qualified Directors, and by the sole shareholder of
such Series on that date. The Plans were approved in respect of the Class B
shares of each Series (other than the Emerging Markets Growth Fund) on March 21,
1996 by the Board of Directors of the Fund, including a majority of the
Qualified Directors, and by the sole shareholder of each such class on that
date, and became effective in respect of the Class B shares on April 22, 1996.
The Plans will continue in effect through December 31 of each year so long as
such continuance is approved annually by a majority vote of both the Directors
and the Qualified Directors of the Fund, cast in person at a meeting called for
the purpose of voting on such approval. The Plans may not be amended to increase
materially the amounts payable to Service Organizations (as defined in the
Fund's Prospectus) with respect to a Class without the approval of a majority of
the outstanding voting securities of such Class. If the amount payable in
respect of Class A shares under the Plans is proposed to be increased
materially, the Fund will either (i) permit holders of Class B shares to vote as
a separate class on the proposed increase or (ii) establish a new class of
shares subject to the same payment under the Plans as existing Class A shares,
in which case Class B shares will thereafter convert into the new class instead
of into Class A shares. No material amendment to the Plans may be made except by
a majority of both the Directors and Qualified Directors.
The Plans require that the Treasurer of the Fund shall provide to the
Directors and the Directors shall review, at least quarterly, a written report
of the amounts expended (and purposes therefor) under the Plans. Rule 12b-1 also
requires that the selection and nomination of Directors who are not "interested
persons" of the Fund be made by such disinterested Directors.
PORTFOLIO TRANSACTIONS
The Management Agreement recognizes that in the purchase and sale of
portfolio securities of the Series, the Manager and the Subadviser will seek the
most favorable price and execution, and consistent with that policy, may give
consideration to the research, statistical and other services furnished by
brokers or dealers to the Manager and the Subadviser for their use. Such
services include supplemental investment research, analysis and reports
concerning issuers, industries and securities deemed by the Manager and
Subadviser to be beneficial to the Fund. In addition, the Manager and the
Subadviser are authorized to place orders with brokers who provide supplemental
investment and market research and statistical and economic analysis through the
use of such brokers selected solely on the basis of seeking the most favorable
price and execution, although such research and analysis may be useful to the
Manager and the Subadviser in connection with their services to clients other
than the Fund.
In over-the-counter markets, the Fund deals with responsible primary
market-makers unless a more favorable execution or price is believed to be
obtainable. The Fund may buy securities from or sell securities to dealers
acting as principal, except dealers with which its directors and/or officers are
affiliated.
When two or more of the investment companies in the Seligman Group or
other investment advisory clients of the Manager or the Subadviser desire to buy
or sell the same security at the same time, the securities purchased or sold are
allocated by the Manager and the Subadviser in a manner believed to be equitable
to each. There may be possible advantages or disadvantages of such transactions
with respect to price or the size of positions readily obtainable or saleable.
Total brokerage commissions paid to others for the execution, research
and statistical services for the International Fund for the fiscal years ended
October 31, 1997, 1996 and 1995 were $409,545, $337,391 and $230,997,
respectively; for the Emerging Markets Growth Fund for the fiscal year ended
October 31, 1997 and for the period from May 28, 1996 (commencement of
operations) through October 31, 1996 were $419,950 and $151,798, respectively;
for the Global Growth Opportunities Fund for the fiscal years ended October 31,
1997 and 1996 were $585,985 and $635,930, respectively; for the Global Smaller
Companies Fund for the fiscal years ended October 31, 1997, 1996, and 1995 were
$1,910,979, $1,558,525 and $359,655, respectively; and for the
-13-
<PAGE>
Global Technology Fund for the fiscal years ended October 31, 1997, 1996 and
1995 were $936,431, $1,072,773 and $735,490, respectively.
PURCHASE AND REDEMPTION OF SERIES SHARES
Each Series issues three classes of shares: Class A shares may be
purchased at a price equal to the next determined net asset value per share,
plus a sales load. Class A shares purchased at net asset value without an
initial sales load due to the size of the purchase are subject to a CDSL of 1%
if such shares are redeemed within eighteen months of purchase. Class B shares
may be purchased at a price equal to the next determined net asset value without
an initial sales load, but a CDSL may be charged on redemptions within 6 years
of purchase. Class D shares may be purchased at a price equal to the next
determined net asset value without an initial sales load, but a CDSL may be
charged on redemptions within one year of purchase. See "Alternative
Distribution System," "Purchase of Shares," and "Redemption of Shares" in the
Prospectus.
SPECIMEN PRICE MAKE-UP
Under the current distribution arrangements between the Fund and the
Distributor, Class A shares are sold subject to a sales load of up to 4.75% and
Class B and Class D shares are sold at net asset value. Using each Series' net
asset value at October 31, 1997, the maximum offering prices of each Series'
shares are as follows:
<TABLE>
<CAPTION>
CLASS A SHARES
Net Asset Maximum Sales Load Maximum Offering
Series Value Per Share (4.75% of Offering Price) Price Per Share
------ --------------- ------------------------- ---------------
<S> <C> <C> <C>
International Fund $17.92 $.89 $18.81
Emerging Markets Growth Fund 7.34 .37 7.71
Global Growth Opportunities Fund 9.20 .46 9.66
Global Smaller Companies Fund 15.62 .78 16.40
Global Technology Fund 15.14 .76 15.90
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES CLASS D SHARES
Net Asset Value and Maximum Net Asset Value and Maximum
Series Offering Price Per Share* Offering Price Per Share**
------ ------------------------- --------------------------
<S> <C> <C>
International Fund $17.30 $17.30
Emerging Markets Growth Fund 7.27 7.27
Global Growth Opportunities Fund 9.06 9.06
Global Smaller Companies Fund 15.04 15.05
Global Technology Fund 14.73 14.73
</TABLE>
- ----------
* Class B shares are subject to a CDSL declining from 5% in the first year
after purchase to 0% after six years.
** Class D shares are subject to a CDSL of 1% on redemptions within one year
of purchase. See "Redemption of Shares" in the Fund's Prospectus.
CLASS A SHARES - REDUCED INITIAL SALES LOADS
REDUCTIONS AVAILABLE. Shares of any Seligman Mutual Fund sold with an
initial sales load in a continuous offering will be eligible for the following
reductions:
VOLUME DISCOUNTS are provided if the total amount being invested in
Class A shares of a Series alone, or in any combination of Class A shares of the
other mutual funds in the Seligman Group which are sold with an initial sales
load, reaches levels indicated in the sales load schedule set forth in the
Prospectus.
THE RIGHT OF ACCUMULATION allows an investor to combine the amount
being invested in Class A shares of a Series of the Fund and shares of the other
mutual funds in the Seligman Group sold with an initial sales load with the
total net asset value of shares of those mutual funds already owned that were
sold with an initial sales load and the total net asset value of shares of
-14-
<PAGE>
Seligman Cash Management Fund which were acquired through an exchange of shares
of another Seligman Mutual Fund (as defined in the Prospectus) on which there
was an initial sales load at the time of purchase, to determine reduced sales
loads in accordance with the schedule in the Prospectus. The value of the shares
owned, including the value of shares of Seligman Cash Management Fund acquired
in an exchange of shares of another mutual fund in the Seligman Group on which
there was an initial sales load at the time of purchase will be taken into
account in orders placed through a dealer, however, only if Seligman Financial
Services, Inc. ("SFSI") is notified by the investor or the dealer of the amount
owned at the time the purchase is made and is furnished sufficient information
to permit confirmation.
A LETTER OF INTENT allows an investor to purchase Class A shares over a
13-month period at reduced initial sales loads in accordance with the schedule
in the Prospectus, based on the total amount of Class A shares of the Fund that
the letter states the investor intends to purchase plus the total net asset
value of shares that were sold with an initial sales load of the other mutual
funds in the Seligman Group already owned and the total net asset value of
shares of Seligman Cash Management Fund, Inc. which were acquired through an
exchange of shares of another mutual fund in the Seligman Group on which there
was an initial sales load at the time of purchase. Reduced initial sales loads
also may apply to purchases made within a 13-month period starting up to 90 days
before the date of execution of a letter of intent. For more information
concerning the terms of the letter of intent see "Terms and Conditions - Letter
of Intent - Class A Shares Only" in the back of the Prospectus.
Class A shares purchased without an initial sales load in accordance
with the sales load schedule in the Fund's prospectus, or pursuant to a Volume
Discount, Right of Accumulation or Letter of Intent are subject to a CDSL of 1%
on redemptions of such shares within eighteen months of purchase.
PERSONS ENTITLED TO REDUCTIONS. Reductions in initial sales loads apply
to purchases of Class A shares by a "single person," including an individual;
members of a family unit comprising husband, wife and minor children; or a
trustee or other fiduciary purchasing for a single fiduciary account. Employee
benefit plans qualified under Section 401 of the Internal Revenue Code, of 1986,
as amended, organizations tax exempt under Section 501(c)(3) or (13), and
non-qualified employee benefit plans that satisfy uniform criteria are
considered "single persons" for this purpose. The uniform criteria are as
follows:
1. Employees must authorize the employer, if requested by the Series,
to receive in bulk and to distribute to each participant on a timely basis the
Fund's Prospectus, reports and other shareholder communications.
2. Employees participating in a plan will be expected to make regular
periodic investments (at least annually). A participant who fails to make such
investments may be dropped from the plan by the employer or the Series 12 months
and 30 days after the last regular investment in his account. In such event, the
dropped participant would lose the discount on share purchases to which the plan
might then be entitled.
3. The employer must solicit its employees for participation in such an
employee benefit plan or authorize and assist an investment dealer in making
enrollment solicitations.
ELIGIBLE EMPLOYEE BENEFIT PLANS. The table of sales loads in the
Prospectus applies to sales to "eligible employee benefit plans" (as defined in
the Prospectus), except that each Series may sell shares at net asset value to
"eligible employee benefit plans," which have at least (i) $500,000 invested in
the Seligman Mutual Funds or (ii) 50 eligible employees to whom such plan is
made available. Such sales must be made in connection with a payroll deduction
system of plan funding or other systems acceptable to Seligman Data Corp. Such
sales are believed to require limited sales effort and sales-related expenses
and therefore are made at net asset value. Contributions or account information
for plan participation also should be transmitted to Seligman Data Corp. by
methods which it accepts. Additional information about "eligible employee
benefit plans" is available from investment dealers or SFSI.
PAYMENT IN SECURITIES. In addition to cash, the Series may accept
securities in payment for Series shares sold at the applicable public offering
price (net asset value plus any applicable sales load), although the Series does
not presently intend to accept securities in payment for Series shares.
Generally, a Series will only consider accepting securities (l) to increase its
holdings in a portfolio security, or (2) if the Manager determines that the
offered securities are a suitable investment in a sufficient amount for
efficient management. Although no minimum has been established, it is expected
that the Series would not accept securities with a value of less than $100,000
per issue in payment for shares. A Series may reject in whole or in part offers
to pay for shares with securities, may require partial payment in cash for
applicable sales loads, and may discontinue accepting securities as payment for
shares at any time without notice. A Series will not accept restricted
securities in payment for shares. A Series will value accepted securities in the
manner provided for valuing portfolio securities of the Series. Any securities
accepted by the Series in
-15-
<PAGE>
payment for Series shares will have an active and substantial market and have a
value which is readily ascertainable. (See "Valuation.")
FURTHER TYPES OF REDUCTIONS. Class A shares of each Series may be issued
without a sales load in connection with the acquisition of cash and securities
owned by other investment companies and other personal holding companies to
financial institution trust departments, to registered investment advisers
exercising investment discretionary authority with respect to the purchase of
Series shares, or pursuant to sponsored arrangements with organizations which
make recommendations to, or permit group solicitation of, its employees, members
or participants in connection with the purchase of shares of the Series, to
separate accounts established and maintained by an insurance company which are
exempt from registration under Section 3(c)(11) of the 1940 Act, to registered
representatives and employees (and their spouses and minor children) of any
dealer that has a sales agreement with SFSI; to financial institution trust
departments; to registered investment advisers exercising discretionary
investment authority with respect to the purchase of Fund shares; to accounts of
financial institutions or broker/dealers that charge account management fees,
provided the manager or one of its affiliates has entered into an agreement with
respect to such accounts; pursuant to sponsored arrangements with organizations
which make recommendations to or permit group solicitations of, its employees,
members or participants in connection with the purchase of shares of the Fund;
to other investment companies in the Seligman Group in connection with a
deferred fee arrangement for outside directors; and to "eligible employee
benefit plans" which have at least (i) $500,000 invested in the Seligman Mutual
Funds or (ii) 50 eligible employees to whom such plan is made available.
"Eligible employee benefit plan" means any plan or arrangement, whether or not
tax qualified, which provides for the purchase of Fund shares. Sales of shares
to such plans must be made in connection with a payroll deduction system of plan
funding or other system acceptable to Seligman Data Corp.
Class A shares may be issued without a sales load to present and
retired directors, trustees, officers, employees (and their family members, as
defined in the Prospectus) of the Funds, the other investment companies in the
Seligman Group, the Manager and other companies affiliated with the Manager.
Such sales may also be made to employee benefit plans and thrift plans for such
persons and to any investment advisory, custodial, trust or other fiduciary
account managed or advised by the Manager or any affiliate. The sales may be
made for investment purposes only, and shares may be resold only to the Fund.
Class A shares may be sold at net asset value to these persons since
such shares require less sales effort and lower sales related expenses as
compared with sales to the general public.
MORE ABOUT REDEMPTIONS. The procedures for redemption of Series' shares
under ordinary circumstances are set forth in the Prospectus. In unusual
circumstances, payment may be postponed, or the right of redemption postponed
for more than seven days, if the orderly liquidation of portfolio securities is
prevented by the closing of, or restricted trading on, the NYSE during periods
of emergency, or such other periods as ordered by the Securities and Exchange
Commission. Under these circumstances, redemption proceeds may be made in
securities, subject to the review of some state securities commissions. If
payment is made in securities, a shareholder may incur brokerage expenses in
converting these securities to cash.
DISTRIBUTION SERVICES
SFSI, an affiliate of the Manager, acts as general distributor of the
shares of the Series of the Fund and of the other mutual funds in the Seligman
Group. The Fund and SFSI are parties to a Distributing Agreement dated January
1, 1993. As general distributor of the Fund's capital stock, SFSI allows
commissions to all dealers, as indicated in the Prospectus, up to 4.25% on
purchases to which the 4.75% maximum sales load applies. SFSI receives the
balance of sales loads and any CDSLs paid by investors on Class D shares.
The following tables set forth the concessions received by SFSI, dealer
commissions and total commissions paid by each Series on sales of Class A shares
for the fiscal years ended October 31, 1997, 1996 and 1995. Also included in the
table are the amounts of CDSL retained by SFSI on sales of Class D shares of
each Series for the fiscal years ended October 31, 1997, 1996 and 1995.
-16-
<PAGE>
<TABLE>
<CAPTION>
Fiscal 1997
SFSI Dealer Total CDSL
Series Concessions Commissions Commissions Retained
- ------ ----------- ----------- ----------- --------
<S> <C> <C> <C> <C>
International Fund $ 17,927 $ 134,739 $ 152,666 $ 13,490
Emerging Markets Growth Fund 69,894 552,204 622,098 13,185
Global Growth Opportunities Fund 44,965 358,779 403,744 14,175
Global Smaller Companies Fund 400,220 3,231,906 3,632,126 172,825
Global Technology Fund 210,590 1,713,143 1,923,733 52,154
Fiscal 1996
SFSI Dealer Total CDSL
Series Concessions Commissions Commissions Retained
- ------ ----------- ----------- ----------- --------
International Fund $ 42,719 $ 331,586 $ 374,305 $ 11,127
Emerging Markets Growth Fund* 31,761 749,016 780,777 1,677
Global Growth Opportunities Fund 201,990 4,179,489 4,381,479 21,849
Global Smaller Companies Fund 810,616 6,498,877 7,309,493 62,753
Global Technology Fund 930,729 7,535,643 8,466,372 173,702
Fiscal 1995
SFSI Dealer Total CDSL
Series Concessions Commissions Commissions Retained
- ------ ----------- ----------- ----------- --------
International Fund $ 24,712 $ 340,375 $ 365,087 $ 9,926
Global Smaller Companies Fund 149,478 1,581,277 1,730,755 20,784
Global Technology Fund 1,452,931 13,763,930 15,216,861 47,859
</TABLE>
- ----------------------------
* For the period 5/28/96 to 10/31/96.
SFSI has sold its rights to collect any CDSL imposed on redemptions of
Class B shares to FEP Capital, L.P. ("FEP"). SFSI has also sold its rights to
substantially all of the distribution fee with respect to Class B shares
receivable by it pursuant to the Plans to FEP, which provides funding to SFSI to
enable it to pay commissions to dealers at the time of the sale of the related
Class B shares. In connection with the sale of its rights to collect any CDSL
and the distribution fees with respect to Class B shares, SFSI receives payments
from FEP based on the value of Class B shares sold. The aggregate amounts of
such payments together with the Class B distribution fees retained by SFSI for
the fiscal year ended October 31, 1997 and for the period ended October 31, 1996
amounted to the following:
Series Amount
------ ------
1997 1996
---- ----
International Fund $ 10,837 $ 7,499
Emerging Markets Growth Fund 59,915 29,634
Global Growth Opportunities Fund 28,585 24,532
Global Smaller Companies Fund 446,351 269,847
Global Technology Fund 86,256 50,272
Effective April 1, 1995, Seligman Services, Inc., an affiliate of the
Manager, became eligible to receive commissions from certain sales of Series
shares, as well as distribution and service fees pursuant to the Plans. For the
periods ended October 31, 1997, 1996 and 1995, Seligman Services, Inc. received
commissions from sales of the Series of the Fund and distribution and service
fees, pursuant to the Plans, as follows:
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<PAGE>
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
Distribution and Distribution and Distribution and
Series Commissions Service Fees Commissions Service Fees Commissions Service Fees
------ ----------- ------------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
International Fund $ 1,009 $18,553 $ 3,204 $15,809 $ 1,843 $10,799
Emerging Markets Growth Fund 7,957 5,900 2,722 568 --- ---
Global Growth Opportunities Fund 1,921 6,876 9,362 3,281 --- ---
Global Smaller Companies Fund 35,359 45,222 137,567 25,474 16,474 4,833
Global Technology Fund 38,720 86,328 190,014 36,015 240,079 6,303
</TABLE>
Class A shares may be sold at net asset value to present and retired
Directors, trustees, officers, employees (and their family members, as defined
in the Prospectus) of the Fund, the other investment companies in the Seligman
Group, the Manager and other companies affiliated with the Manager and the
Subadviser. Such sales also may be made to employee benefit plans for such
persons and to any investment advisory, custodial, trust or other fiduciary
account managed or advised by the Manager or any affiliate. These sales may be
made for investment purposes only, and shares may be resold only to the Series.
VALUATION
The net asset value per share of each class of a Series of the Fund is
determined as of the close of regular trading on the NYSE (normally, 4:00 p.m.
Eastern time), on each day that the NYSE is open. The Fund and the NYSE are
currently closed on New Year's Day, Martin Luther King, Jr. Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day. The Fund will also determine net asset value for each class
of a Series on each day in which there is a sufficient degree of trading in a
Series' portfolio securities that the net asset value of Series shares might be
materially affected. Net asset value per share for a class of a Series is
computed by dividing that class' share of the value of the net assets of such
Series (i.e., the value of its assets less liabilities) by the total number of
outstanding shares of such class. All expenses of a Series, including the
Manager's fee, are accrued daily and taken into account for the purpose of
determining net asset value. The net asset value of Class B and Class D shares
of a Series will generally be lower than the net asset value of Class A shares
of such Series as a result of the higher distribution fee with respect to such
shares.
Portfolio securities, including open short positions and options
written, are valued at the last sale price on the securities exchange or
securities market on which such securities primarily are traded. 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 not recent sales
transactions are valued based on quotations provided by primary market maker in
such securities. Other securities not listed on an exchange or securities
market, or securities in which there were no transactions, are valued at the
average of the most recent bid and asked price, except in the case of open short
positions where the asked price is available. 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
obligations with less than sixty days remaining to maturity are generally valued
at amortized cost. Short-term obligations with more than sixty days remaining to
maturity will be valued at current market value until the sixtieth day prior to
maturity, and will then be valued on an amortized cost basis based on the value
on such date unless the Board determines that this amortized cost value does not
represent fair market value.
Generally, trading in foreign securities, as well as U.S. Government
securities, money market instruments and repurchase agreements, is substantially
completed each day at various times prior to the close of regular trading on the
NYSE. The values of such securities used in computing the net asset value of the
Series shares are determined as of such times. Foreign currency exchange rates
are also generally determined prior to the close of regular trading on the NYSE.
Occasionally, events affecting the value of such securities and such exchange
rates may occur between the times at which they are determined and the close of
regular trading on the NYSE, which will not be reflected in the computation of
net asset value. If during such periods events occur which materially affect the
value of such securities, the securities will be valued at their fair market
value as determined in accordance with procedures approved by the Board of
Directors.
For purposes of determining the net asset value per share of a Series,
all assets and liabilities initially expressed in foreign currencies will be
converted into U.S. dollars at the mean between the bid and offer prices of such
currencies against U.S. dollars
-18-
<PAGE>
quoted by a major bank that is a regular participant in the foreign exchange
market or on the basis of a pricing service that takes into account the quotes
provided by a number of such major banks.
TAXES
FOREIGN INCOME TAXES. Investment income received by the Series from sources
within foreign countries may be subject to foreign income taxes withheld at
source. The United States has entered into tax treaties with many foreign
countries which entitle the Series to a reduced rate of such taxes or exemption
from taxes on such income. It is impossible to determine the effective rate of
foreign tax in advance since the amount of each Series' assets to be invested
within various countries is not known.
U.S. FEDERAL INCOME TAXES. Each Series intends for each taxable year to qualify
for tax treatment as a "regulated investment company" under the Code.
Qualification relieves a Series of Federal income tax liability on that part of
its net ordinary income and net realized capital gains which it pays out to its
shareholders. Such qualification does not, of course, involve governmental
supervision of management or investment practices or policies. Investors should
consult their own counsel for a complete understanding of the requirements a
Series must meet to qualify for such treatment. The information set forth in the
Prospectus and the following discussion relate solely to the U.S. Federal income
taxes on dividends and distributions by a Series and assumes that each Series
qualifies as a regulated investment company. Investors should consult their own
counsel for further details, including their possible entitlement to foreign tax
credits that might be "passed through" to them under the rules described below,
and the application of state and local tax laws to his or her particular
situation.
Each Series intends to declare and distribute dividends in the amounts
and at the times necessary to avoid the application of the 4% Federal excise tax
imposed on certain undistributed income of regulated investment companies. Each
Series will be required to pay the 4% excise tax to the extent it does not
distribute to its shareholders during any calendar year at least 98% of its
ordinary income for the calendar year plus 98% of its capital gain net income
for the twelve months ended October 31 of such year. Certain distributions of
the Series which are paid in January of a given year but are declared in the
prior October, November or December to shareholders of record as of a specified
date during such a month will be treated as having been distributed to
shareholders and will be taxable to shareholders as if received in December.
Dividends of net ordinary income and distributions of any net realized
short-term capital gain are taxable to shareholders as ordinary income. Since
each Series expects to derive a substantial portion of its gross income
(exclusive of capital gains) from sources other than qualifying dividends, it is
expected that only a portion of each Series' dividends or distributions will
qualify for the dividends received deduction for corporations.
The excess of net long-term capital gains over the net short-term
capital losses realized and distributed by each Series to its shareholders will
be taxable to the shareholders as long-term capital gains, irrespective of the
length of time a shareholder may have held Series shares. Individual
shareholders will be subject to federal income tax on net capital gain at a
maximum rate of 28% in respect of shares held for more than one year and at a
maximum rate of 20% in respect of shares held for more than eighteen months. Net
capital gain of a corporate shareholder is taxed at the same rate as ordinary
income. Any dividend or distribution received by a shareholder on shares of a
Series shortly after the purchase of such shares will have the effect of
reducing the net asset value of such shares by the amount of such dividend or
distribution. Furthermore, such dividend or distribution, although in effect a
return of capital, would be taxable to the shareholder as described above. If a
shareholder has held shares in a Series for six months or less and during that
period has received a distribution taxable to the shareholder as a long-term
capital gain, any loss recognized by the shareholder on the sale of those shares
during that period will be treated as a long-term capital loss to the extent of
the distribution.
Dividends and distributions are taxable in the manner discussed
regardless of whether they are paid to the shareholder in cash or are reinvested
in additional shares of a Series' common stock.
Each Series generally will be required to withhold tax at the rate of
31% with respect to a portion of distributions and other reportable payments to
noncorporate shareholder unless the shareholder certifies on his Account
Application that the social security or taxpayer identification number provided
is correct and that the shareholder has not been notified by the Internal
Revenue Service that he is subject to backup withholding.
Income received by a Series from sources within various foreign
countries may be subject to foreign income tax. If more than 50% of the value of
a Series' total assets at the close of its taxable year consists of the stock or
securities of foreign corporations, such Series may elect to "pass through" to
its shareholders the amount of foreign income taxes paid by such Series.
-19-
<PAGE>
Pursuant to such election, shareholders would be required: (i) to include in
gross income, even though not actually received, their respective pro-rata
shares of a Series' gross income from foreign sources; and (ii) either to deduct
their pro-rata share of foreign taxes in computing their taxable income, or to
use such share as a foreign tax credit against Federal income tax (but not
both). No deduction for foreign taxes could be claimed by a shareholder who does
not itemize deductions.
Shareholders who choose to utilize a credit (rather than a deduction)
for foreign taxes will be subject to the limitation that the credit may not
exceed the shareholder's U.S. tax (determined without regard to the availability
of the credit) attributable to his or her total foreign source taxable income.
For this purpose, the portion of dividends and distributions paid by a Series
from its foreign source income will be treated as foreign source income. Each
Series' gains from the sale of securities will generally be treated as derived
from U.S. sources, however, and certain foreign currency gains and losses
likewise will be treated as derived from U.S. sources. The limitation on the
foreign tax credit is applied separately to foreign source "passive income,"
such as the portion of dividends received from a Series which qualifies as
foreign source income. In addition, the foreign tax credit is allowed to offset
only 90% of the alternative minimum tax imposed on corporations and individuals.
Because of these limitations, shareholders may be unable to claim a credit for
the full amount of their proportionate shares of the foreign income taxes paid
by a Series.
Each Series intends for each taxable year to meet the requirements of
the Code to "pass through" to its shareholders foreign income taxes paid, but
there can be no assurance that a Series will be able to do so. Each shareholder
will be notified within 60 days after the close of each taxable year of each
Series whether the foreign taxes paid by such Series will "pass through" for
that year, and, if so, the amount of each shareholder's pro-rata share (by
country) of (i) the foreign taxes paid, and (ii) such Series' gross income from
foreign sources. Of course, shareholders who are not liable for Federal income
taxes, such as retirement plans qualified under Section 401 of the Code, will
not be affected by any such "pass through" of foreign tax credits.
INVESTMENTS IN PASSIVE FOREIGN INVESTMENT COMPANIES. If a Series purchases
shares in certain foreign investment entities, referred to as "passive foreign
investment companies," the Series itself may be subject to U.S. Federal income
tax, and an additional charge in the nature of interest, on a portion of any
"excess distribution" from such company or gain from the disposition of such
shares, even if the distribution or gain is paid by such Series as a dividend to
its shareholders. If a Series were able and elected to treat a passive foreign
investment company as a "qualified electing fund," in lieu of the treatment
described above, such Series would be required each year to include in income,
and distribute to shareholders in accordance with the distribution requirements
set forth above, its pro rata share of the ordinary earnings and net capital
gains of the company, whether or not distributed to such Series.
CERTAIN FOREIGN CURRENCY TRANSACTIONS. Gains or losses attributable to foreign
currency contracts, or to fluctuations in exchange rates that occur between the
time a Series accrues interest or other receivables or accrues expenses or other
liabilities denominated in a foreign currency and the time the Fund actually
collects such receivables or pays such liabilities are treated as ordinary
income or ordinary loss. Similarly, gains or losses on disposition of debt
securities denominated in a foreign currency attributable to fluctuations in the
value of the foreign currency between the date of acquisition of the security
and the date of disposition also are treated as ordinary gain or loss. These
gains or losses increase or decrease the amount of a Series' net investment
income available to be distributed to its shareholders as ordinary income.
OPTIONS TRANSACTIONS. A special "marked-to-market" system governs the taxation
of "section 1256 contracts," which include certain listed options. Each Series
may invest in such section 1256 contracts. In general, gain or loss on section
1256 contracts will be taken into account for tax purposes when actually
realized. In addition, any section 1256 contracts held at the end of a taxable
year will be treated as sold at fair market value (that is, marked-to-market),
and the resulting gain or loss will be recognized for tax purposes. In general,
gain or loss recognized by a Series on the actual or deemed disposition of a
section 1256 contract will be treated as 60% long-term and 40% short-term
capital gain or loss, regardless of the period of time the section 1256 contract
is actually held by such Series. Each Series can elect to exempt its section
1256 contracts which are part of a "mixed" straddle from the application of
section 1256.
PERFORMANCE
The average annual total returns for the one-year and five-year periods
ended October 31, 1997 and for the period April 7, 1992 (inception) through
October 31, 1997 for the Class A shares of the International Fund were 4.59%,
11.25% and 9.86%, respectively; for the one-year period ended October 31, 1997
and for the period May 28, 1996 (inception) through October 31, 1997 for the
Class A shares of the Emerging Markets Growth Fund were 3.09% and (1.50)%,
respectively; for the one-year period ended October 31, 1997 and for the period
November 1, 1995 (inception) through October 31, 1997 for the Class A shares of
the Global Growth Opportunities Fund were 8.49% and 10.75%, respectively; for
the one-year and five-year periods ended October
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<PAGE>
31, 1997 and for the period September 9, 1992 (inception) through October 31,
1997 for the Class A shares of the Global Smaller Companies Fund were 3.11%,
19.49% and 18.92%, respectively; for the one-year period ended October 31, 1997
and for the period May 23, 1994 (inception) through October 31, 1997 for the
Class A shares of the Global Technology Fund were 27.55% and 25.36%,
respectively. These returns were computed by assuming a hypothetical initial
investment of $1,000 in Class A shares of each Series. From this $1,000, the
maximum sales load of $47.50 (4.75% of public offering price) was deducted. It
was then assumed that all of the dividends and distributions paid by the Series'
Class A shares over the relevant time period, were reinvested. It was then
assumed that at the end of these periods, the entire amounts were redeemed. The
average annual total return was then calculated by calculating the annual rate
required for the initial payment to grow to the amount which would have been
received upon redemption (i.e., the average annual compound rate of return).
The total returns for the one-year period ended October 31, 1997 for the
Class B shares of the International Fund, Emerging Markets Growth Fund, the
Global Growth Opportunities Fund, the Global Smaller Companies Fund and the
Global Technology Fund were 3.90%, 2.54%, 7.97%, 2.39% and 27.82%, respectively;
for the period April 22, 1996 (inception) through October 31, 1997 for the Class
B shares of the International Fund, the Global Growth Opportunities Fund, the
Global Smaller Companies Fund and the Global Technology Fund were 0.60%, 5.61%,
3.56% and 15.39%, respectively. The total return for the period May 28, 1996
(inception) through October 31, 1997 for the Class B shares of the Emerging
Markets Growth Fund was (1.53)%. These returns were computed by assuming a
hypothetical initial investment of $1,000 in Class B shares of each Series and
that all of the dividends and distributions paid by the Series' Class B shares
over the relevant time period, were reinvested. It was then assumed that at the
end of these periods, the entire amount was redeemed, subtracting the applicable
CDSL (5% for the one-year period and 4% for the period since inception).
The average annual total returns for the one-year period ended October 31,
1997 and for the period September 21, 1993 (inception) through October 31, 1997
for the Class D shares of the International Fund, were 7.90% and 7.52%,
respectively; for the one-year period ended October 31, 1997 and for the period
May 28, 1996 (inception) through October 31, 1997 for the Class D shares of the
Emerging Markets Growth Fund were 6.54% and 1.27%, respectively; for the
one-year period ended October 31, 1997 and the period November 1, 1995
(inception) through October 31, 1997 for the Class D shares of the Global Growth
Opportunities Fund were 11.97% and 12.65%, respectively; for the one-year period
ended October 31, 1997 and for the period May 3, 1993 (inception) through
October 31, 1997 for Class D shares of the Global Smaller Companies Fund were
6.47% and 17.57%, respectively; for the one-year period ended October 31, 1997
and for the period May 23, 1994 (inception) through October 31, 1997 for the
Class D shares of the Global Technology Fund were 31.82% and 26.12%,
respectively. These returns were computed by assuming a hypothetical initial
investment of $1,000 in Class D shares of each Series and that all of the
dividends and distributions paid by the Series' Class D shares over the relevant
time period, were reinvested. It was then assumed that at the end of these
periods, the entire amount was redeemed, subtracting the 1% CDSL, if applicable.
The tables below illustrate the total returns on a $1,000 investment in each
of the Series' Class A, Class B and Class D shares from the commencement of a
Series' operations through October 31, 1997, assuming investment of all
dividends and capital gain distributions.
<TABLE>
<CAPTION>
CLASS A SHARES
Year/ Value of Value of Value Total Value
Period Initial Capital Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ ---------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
10/31/92 $ 944 $ -- $ -- $ 944
10/31/93 1,268 -- 4 1,272
10/31/94 1,402 28 5 1,435
10/31/95 1,326 87 5 1,418
10/31/96 1,363 169 5 1,537
10/31/97 1,422 261 5 1,688 68.81%
EMERGING MARKETS GROWTH FUND
10/31/96 904 -- -- 904
10/31/97 979 -- -- 979 (2.13)
GLOBAL GROWTH OPPORTUNITIES FUND
10/31/96 1,077 -- -- 1,077
10/31/97 1,227 -- -- 1,227 22.67
</TABLE>
-21-
<PAGE>
<TABLE>
<CAPTION>
Year/ Value of Value of Value Total Value
Period Initial Capital Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ ----------
<S> <C> <C> <C> <C> <C>
GLOBAL SMALLER COMPANIES FUND
10/31/92 $ 953 $ -- $ -- $ 953
10/31/93 1,330 -- 3 1,333
10/31/94 1,591 10 3 1,604
10/31/95 1,853 69 4 1,926
10/31/96 2,019 230 4 2,253
10/31/97 2,083 352 4 2,439 143.91%
GLOBAL TECHNOLOGY FUND
10/31/94 1,116 -- -- 1,116
10/31/95 1,740 16 -- 1,756
10/31/96 1,508 116 3 1,627
10/31/97 2,019 156 3 2,178 117.79
CLASS B SHARES
Year/ Value of Value of Value Total Value
Period Initial Capital Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ ----------
INTERNATIONAL FUND
10/31/96 $ 963 $ -- $ -- $ 963
10/31/97 955 54 -- 1,009 0.91%
EMERGING MARKETS GROWTH FUND
10/31/96 947 -- -- 947
10/31/97 978 -- -- 978 (2.18)
GLOBAL GROWTH OPPORTUNITIES FUND
10/31/96 998 -- -- 998
10/31/97 1,087 -- -- 1,087 8.69
GLOBAL SMALLER COMPANIES FUND
10/31/96 1,019 -- -- 1,019
10/31/97 1,002 53 -- 1,055 5.48
GLOBAL TECHNOLOGY FUND
10/31/96 967 -- -- 967
10/31/97 1,244 -- -- 1,244 24.42
CLASS D SHARES
Year/ Value of Value of Value Total Value
Period Initial Capital Gain of of Total
Ended 1 Investment 2 Distributions Dividends Investment 2 Return 1,3
- ------- ------------ ------------- --------- ------------ ----------
INTERNATIONAL FUND
10/31/93 $ 1,048 $ -- $ -- $ 1,048
10/31/94 1,151 23 -- 1,174
10/31/95 1,079 71 -- 1,150
10/31/96 1,099 138 -- 1,237
10/31/97 1,136 211 -- 1,347 34.74%
EMERGING MARKETS GROWTH FUND
10/31/96 947 -- -- 947
10/31/97 1,018 -- -- 1,018 1.82
GLOBAL GROWTH OPPORTUNITIES FUND
10/31/96 1,123 -- -- 1,123
10/31/97 1,269 -- -- 1,269 26.89
-22-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
GLOBAL SMALLER COMPANIES FUND
10/31/93 $ 1,167 $ -- $ -- $ 1,167
10/31/94 1,385 9 -- 1,394
10/31/95 1,600 60 -- 1,660
10/31/96 1,728 200 -- 1,928
10/31/97 1,767 305 -- 2,072 107.15%
GLOBAL TECHNOLOGY FUND
10/31/94 1,168 -- -- 1,168
10/31/95 1,806 16 -- 1,822
10/31/96 1,554 121 -- 1,675
10/31/97 2,063 161 -- 2,224 122.41
</TABLE>
- -----------------------
1 From commencement of operations on:
<TABLE>
<CAPTION>
Class A Shares Class B Shares Class D Shares
-------------- -------------- --------------
<S> <C> <C> <C>
International Fund 4/7/92 4/22/96 9/21/93
Emerging Markets Growth Fund 5/28/96 5/28/96 5/28/96
Global Growth Opportunities Fund 11/1/95 4/22/96 11/1/95
Global Smaller Companies Fund 9/9/92 4/22/96 5/3/93
Global Technology Fund 5/23/94 4/22/96 5/23/94
</TABLE>
2 The "Value of Initial Investment" as of the date indicated reflects the
effect of the maximum sales load or CDSL, if applicable, assumes that all
dividends and capital gain distributions were taken in cash and reflects
changes in the net asset value of the shares purchased with the
hypothetical initial investment. "Total Value of Investment" reflects the
effect of the CDSL, if applicable, and assumes investment of all dividends
and capital gain distributions.
3 "Total Return" for each class of shares of a Series is calculated by
assuming a hypothetical initial investment of $1,000 at the beginning of
the period specified; subtracting the maximum sales load for Class A
shares; determining total value of all dividends and capital gain
distributions that would have been paid during the period on such shares
assuming that each dividend or capital gain distribution was invested in
additional shares at net asset value; calculating the total value of the
investment at the end of the period; subtracting the CDSL on Class B and
Class D shares, if applicable; and finally, by dividing the difference
between the amount of the hypothetical initial investment at the beginning
of the period and its total value at the end of the period by the amount
of the hypothetical initial investment. The International Fund's total
return and average annual total return quoted from time to time through
September 21, 1993 for Class A shares does not reflect the deduction of
the administration, shareholder services and distribution fee effective on
that date, which fee if reflected would reduce the performance quoted.
No adjustments have been made for any income taxes payable by investors
on dividends invested or gain distributions taken in shares.
Waiver by the Manager and Subadviser of a portion of their fees during
the period (as set forth under "Management and Expenses" herein and "Financial
Highlights" in the Prospectus) positively affected the performance results
provided in this section.
GENERAL INFORMATION
CAPITAL STOCK. The Board of Directors is authorized to classify or reclassify
and issue any unissued capital stock of the Fund into any number of series or
classes without further action by shareholders. To date, shares of five series
have been authorized, which shares constitute interests in the International
Fund, the Emerging Markets Growth Fund, the Global Growth Opportunities Fund,
the Global Smaller Companies Fund and the Global Technology Fund. The 1940 Act
requires that where more than one series or class exists, each series or class
must be preferred over all other series or classes in respect of assets
specifically allocated to such series or class.
Rule 18f-2 under the 1940 Act provides that any matter required to be
submitted by the provisions of the 1940 Act or applicable state law, or
otherwise, to the holders of the outstanding voting securities of an investment
company such as the Fund shall not be deemed to have been effectively acted upon
unless approved by the holders of a majority of the outstanding shares of each
class or series affected by such matter. Rule 18f-2 further provides that a
class or series shall be deemed to be affected by a
-23-
<PAGE>
matter unless it is clear that the interests of each class or Series in the
matter are substantially identical or that the matter does not affect any
interest of such class or series. However, the Rule exempts the selection of
independent public accountants, the approval of principal distributing contracts
and the election of directors from the separate voting requirements of the Rule.
CUSTODIAN AND RECORDKEEPING AGENTS. Morgan Stanley Trust Company (NY), One
Pierrepont Plaza, Brooklyn, New York 11201, serves as custodian for the Fund.
Investors Fiduciary Trust Company, 801 Pennsylvania, Kansas City, Missouri
64105, maintains, under the general supervision of the Manager, certain
accounting records and determines the net asset value for the each Series.
ACCOUNTANTS. Deloitte & Touche LLP, independent auditors, have been selected as
auditors of the Fund. Their address is Two World Financial Center, New York, NY
10281.
FINANCIAL STATEMENTS
The Annual Report to Shareholders for the Fund for the fiscal year
ended October 31, 1997 contains a schedule of the investments of each Series as
of October 31, 1997, as well as certain other financial information as of that
date. The financial statements and notes included in the Annual Report, and the
Independent Auditor's Report thereon, are incorporated herein by reference. The
Annual Report will be furnished without charge to investors who request copies
of this Statement of Additional Information.
-24-
<PAGE>
APPENDIX A
MOODY'S INVESTORS SERVICE, INC. ("MOODY'S")
DEBT SECURITIES
Aaa: Bonds which are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk. Interest payments are
protected by a large or by an exceptionally stable margin and principal is
secure. While the various protective elements are likely to change, such changes
as can be visualized are most unlikely to impair the fundamentally strong
position of such issues.
Aa: Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than Aaa bonds because margins of
protection may not be as large or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which make the
long-term risks appear somewhat larger than in Aaa securities.
A: Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the future.
Baa: Bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present but
certain protective elements may be characteristically lacking or may be
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact may have speculative characteristics as well.
Ba: Bonds which are rated Ba are judged to have speculative elements;
their future cannot be considered as well-assured. Often the protection of
interest and principal payments may be very moderate, and thereby not well
safeguarded during other good and bad times over the future. Uncertainty of
position characterizes bonds in this class.
B: Bonds which are rated B generally lack characteristics of a
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may be
small.
Caa: Bonds which are rated Caa are of poor standing. Such issues may be
in default or there may be present elements of danger with respect to principal
or interest.
Ca: Bonds which are rated Ca represent obligations which are
speculative in high degree. Such issues are often in default or have other
marked shortcomings.
C: Bonds which are rated C are the lowest rated class of bonds, and
issues so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers (1, 2 and 3) in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; modifier 2 indicates a mid-range ranking; and modifier 3
indicates that the issuer ranks in the lower end of its generic rating category.
COMMERCIAL PAPER
Moody's Commercial Paper Ratings are opinions of the ability of issuers
to repay punctually promissory senior debt obligations not having an original
maturity in excess of one year. Issuers rated "Prime-1" or "P-1" indicate the
highest quality repayment ability of the rated issue.
The designation "Prime-2" or "P-2" indicates that the issuer has a
strong ability for repayment of senior short-term promissory obligations.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternative liquidity is maintained.
-25-
<PAGE>
The designation "Prime-3" or "P-3" indicates that the issuer has an
acceptable capacity for repayment of short-term promissory obligations. The
effect of industry characteristics and market compositions may be more
pronounced. Variability in earnings and profitability may result in changes in
the level of debt protection measurements and may require relatively high
financial leverage. Adequate alternate liquidity is maintained.
Issues rated "Not Prime" do not fall within any of the Prime rating
categories.
STANDARD & POOR'S RATING SERVICE ("S&P")
DEBT SECURITIES
AAA: Debt issues rated AAA are highest grade obligations. Capacity to
pay interest and repay principal is extremely strong.
AA: Debt issues rated AA have a very high degree of safety and very
strong capacity to pay interest and repay principal and differ from the highest
rated issues only in small degree.
A: Debt issues rated A are regarded as upper medium grade. They have a
strong degree of safety and capacity to pay interest and repay principal
although it is somewhat more susceptible in the long term to the adverse effects
of changes in circumstances and economic conditions than debt in higher rated
categories.
BBB: Debt issues rated BBB are regarded as having a satisfactory degree
of safety and capacity to pay interest and re-pay principal. Whereas they
normally exhibit adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened capacity to pay
interest and re-pay principal for bonds in this category than for bonds in
higher rated categories.
BB, B, CCC, CC: Debt issues rated BB, B, CCC and CC are regarded on
balance, as predominantly speculative with respect to capacity to pay interest
and pre-pay principal in accordance with the terms of the bond. BB indicates the
lowest degree of speculation and CC the highest degree of speculation. While
such bonds will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposure to adverse
conditions.
C: The rating C is reserved for income bonds on which no interest is
being paid.
D: Debt issues rated D are in default, and payment of interest and/or
repayment of principal is in arrears.
NR: Indicates that no rating has been requested, that there is
insufficient information on which to base a rating or that S&P does not rate a
particular type of bond as a matter of policy.
COMMERCIAL PAPER
S&P Commercial Paper ratings are current assessments of the likelihood of timely
payment of debts having an original maturity of no more than 365 days.
A-1: The A-1 designation indicates that the degree of safety regarding
timely payment is very strong.
A-2: Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated "A-1."
A-3: Issues carrying this designation have adequate capacity for timely
payment. They are, however, more vulnerable to the adverse effects of changes in
circumstances than obligations carrying the higher designations.
B: Issues rated "B" are regarded as having only a speculative capacity
for timely payment.
C: This rating is assigned to short-term debt obligations with a
doubtful capacity of payment.
D: Debt rated "D" is in payment default.
-26-
<PAGE>
NR: Indicates that no rating has been requested, that there is
insufficient information on which to base a rating or that S&P does not rate a
particular type of bond as a matter of policy.
The ratings assigned by S&P may be modified by the addition of a plus
(+) or minus (-) sign to show relative standing within its major rating
categories.
-27-
<PAGE>
APPENDIX B
HISTORY OF J. & W. SELIGMAN & CO. INCORPORATED
Seligman's beginnings date back to 1837, when Joseph Seligman, the oldest of
eight brothers, arrived in the United States from Germany. He earned his living
as a pack peddler in Pennsylvania, and began sending for his brothers. The
Seligmans became successful merchants, establishing businesses in the South and
East.
Backed by nearly thirty years of business success - culminating in the sale of
government securities to help finance the Civil War - Joseph Seligman, with his
brothers, established the international banking and investment firm of J. & W.
Seligman & Co. In the years that followed, the Seligman Complex played a major
role in the geographical expansion and industrial development of the United
States.
THE SELIGMAN COMPLEX:
...Prior to 1900
o Helps finance America's fledgling railroads through underwritings.
o Is admitted to the New York Stock Exchange in 1869. Seligman remained a
member of the NYSE until 1993, when the evolution of its business made it
unnecessary.
o Becomes a prominent underwriter of corporate securities, including New
York Mutual Gas Light Company, later part of Consolidated Edison.
o Provides financial assistance to Mary Todd Lincoln and urges the Senate to
award her a pension.
o Is appointed U.S. Navy fiscal agent by President Grant.
o Becomes a leader in raising capital for America's industrial and urban
development.
...1900-1910
o Helps Congress finance the building of the Panama Canal.
...1910s
o Participates in raising billions for Great Britain, France and Italy,
helping to finance World War I.
...1920s
o Participates in hundreds of successful underwritings including those for
some of the Country's largest companies: Briggs Manufacturing, Dodge
Brothers, General Motors, Minneapolis-Honeywell Regulatory Company, Maytag
Company United Artists Theater Circuit and Victor Talking Machine Company.
o Forms Tri-Continental Corporation in 1929, today the nation's largest,
diversified closed-end equity investment company, with over $2 billion in
assets and one of its oldest.
...1930s
o Assumes management of Broad Street Investing Co. Inc., its first mutual
fund, today known as Seligman Common Stock Fund, Inc.
o Establishes Investment Advisory Service.
...1940s
o Helps shape the Investment Company Act of 1940.
o Leads in the purchase and subsequent sale to the public of Newport News
Shipbuilding and Dry Dock Company, a prototype transaction for the
investment banking industry.
o Assumes management of National Investors Corporation, today Seligman
Growth Fund, Inc.
o Establishes Whitehall Fund, Inc., today Seligman Income Fund, Inc.
-28-
<PAGE>
...1950-1989
o Develops new open-end investment companies. Today, manages more than 40
mutual fund portfolios.
o Helps pioneer state-specific, municipal bond funds, today managing a
national and 18 state-specific municipal funds.
o Establishes J. & W. Seligman Trust Company and J. & W. Seligman Valuations
Corporation.
o Establishes Seligman Portfolios, Inc., an investment vehicle offered
through variable annuity products.
...1990s
o Introduces Seligman Select Municipal Fund, Inc. and Seligman Quality
Municipal Fund, Inc. two closed-end funds that invest in high quality
municipal bonds.
o In 1991 establishes a joint venture with Henderson plc, of London, known
as Seligman Henderson Co., to offer global and international investment
products.
o Introduces to the public Seligman Frontier Fund, Inc., a small
capitalization mutual fund.
o Launches Seligman Henderson Global Fund Series, Inc., which today offers
five separate series: Seligman Henderson International Fund, Seligman
Henderson Global Smaller Companies Fund, Seligman Henderson Global
Technology Fund Seligman Henderson Global Growth Opportunities Fund and
Seligman Henderson Emerging Markets Growth Fund.
o Launches Seligman Value Fund Series, Inc., which currently offers two
separate series: Seligman Large-Cap Value Fund and Seligman Small-Cap
Value Fund.
-29-
<PAGE>
APPENDIX C
HISTORY OF HENDERSON PLC
Henderson's origins can be traced back to the year 1872, when its founder, Sir
Alexander Henderson, joined the London Stock Exchange. In the years that
followed, Sir Alexander and the Henderson brothers began a long tradition of
global investing.
...Prior to 1900:
o Alexander Henderson joins the London Stock Exchange in 1872.
Invests in railways in South America and Spain, mining and gold interests
in Mexico, Australia, and Chile, and wheat field developments in Canada
and the United States.
o Invests in the Argentine Transandine Railway in 1887.
o Helps finance the building of Manchester Ship Canal in England in 1887.
Launches TR Smaller Companies Investment Trust in 1887.
o Launches The Bankers Investment Trust in 1888.
o Launches Electric and General Investment Company in 1890.
o Launches TR City of London Trust in 1891.
o Helps finance the building of the Great Central Railway in England in
1894.
o Alexander Henderson is elected to British Parliament in 1898.
...1900-1910
o Alexander Henderson is knighted in 1902.
o Finances British Central African Company in 1902 to build railways across
Africa.
o Launches TR Property Investment Trust in 1905.
o Helps establish the National Bank of Turkey in 1909.
o Establishes Witan Investment Company in 1909.
...1910s
o Alexander Henderson achieves peerage as the first Lord Faringdon in 1916.
o Helps establish The British Trade Corporation in 1917, dedicated to
developing international trade for English companies.
...1920-1989
o Presides over the 1922 merger of the Great Central Railway with the London
and North Eastern Railway.
o Henderson Administration, today Henderson plc, is formally incorporated in
1934.
o Henderson is one of the first United Kingdom investors in Occidental
Petroleum in 1959.
o Begins managing a series of retail unit trusts in 1974 that are focused on
international markets, including Japan, North America, Europe, and the
Pacific. Today, Henderson manages 22 retail unit trusts, eight exempt unit
trusts, and 20 investment trusts.
o Launches the Luxembourg-based Henderson Horizon Funds in 1983, including
European Smaller Companies Fund and Global Bond Fund. Today, Henderson
offers 12 Henderson Horizon Funds.
o Henderson is listed on the London Stock Exchange in 1983.
...1990s
o Establishes a joint venture in 1991 with New York-based J. & W. Seligman &
Co., known as Seligman Henderson Co., to offer global investment products.
o Launches Seligman Henderson Global Fund Series, Inc., which today offers
five separate series: Seligman Henderson International Fund, Seligman
Henderson Global Smaller Companies Fund, Seligman Henderson Global
Technology Fund, Seligman Henderson Global Growth Opportunities Fund, and
Seligman Henderson Emerging Markets Growth Fund.
o Is, today, the largest investment trust manager in the United Kingdom and
one of the largest independent money managers in Europe.
o Has been the recipient of Micropal's "Best Investment Trust Manager of the
Year" award for the years 1994, 1995, and 1996.
-30-
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON INTERNATIONAL FUND
SHARES VALUE
--------- --------
COMMON STOCKS 96.50%
ARGENTINA 0.03%
SIDERCA (CLASS A)
Manufacturer and producer
of steel (Metals) ........................... 11,274 $ 27,637
-----------
AUSTRALIA 1.19%
AUSTRALIAN GAS LIGHT
Natural oil and gas distributor
and transporter (Resources) ................. 25,000 166,642
BRAMBLES INDUSTRIES
Operator of diversified
transportation and commercial
services (Industrial Goods
and Services) ............................... 5,400 103,589
BROKEN HILL PROPRIETARY
Resource company with interests
in steel, oil, and minerals
(Resources) ................................. 13,305 131,630
ICI AUSTRALIA
Diversified manufacturer of
products such as paints,
explosives, and pharmaceuticals
(Manufacturing) ............................. 20,900 156,910
LEND LEASE
Construction company
(Construction and Property) ................. 7,400 151,197
SANTOS
Independent producer and
explorer of oil and natural gas
(Resources) ................................. 10,600 48,641
WESTPAC BANKING
Provider of banking
services (Banking) .......................... 34,400 199,852
WOODSIDE PETROLEUM
Oil and gas explorer and
producer (Resources) ........................ 18,000 151,683
-----------
1,110,144
-----------
BELGIUM 1.32%
CREDIT COMMUNAL HOLDING/DEXIA*
Special-purpose banking
(Financial Services) ........................ 11,302 1,230,132
-----------
BRAZIL 2.85%
COMPANHIA ENERGETICA DE MINAS
GERAIS "CEMIG" (ADRS)
Provider of electrical utility
services (Utilities) ........................ 20,700 807,300
PETROLEO BRASILEIRO "PETROBRAS"
Oil and gas producer and
distributor (Resources) ..................... 46,200 917,754
TELECOMUNICACOES BRASILEIRAS
"TELEBRAS" (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 9,286 940,207
-----------
2,665,261
-----------
CROATIA 0.34%
PLIVA (GDRS)*
Manufacturer of pharmaceutical
products (Health and Household) ............. 22,000 320,100
-----------
CZECH REPUBLIC 0.38%
SPT TELECOM
Provider of telecommunications
services (Telecommunications) ............... 3,100 355,988
-----------
DENMARK 0.66%
NOVO NORDISK (CLASS B)
Producer and supplier of
insulin and industrial enzymes
(Health and Household) ...................... 5,701 615,621
-----------
FRANCE 11.28%
ACCOR
Hotel operator and provider
of related services
(Leisure and Hotels) ........................ 6,780 1,258,191
AXA-UAP
Provider of insurance and
financial services (Insurance) .............. 19,642 1,340,589
BANQUE NATIONALE DE PARIS
Provider of commercial,
investment, and private
banking services (Banking) .................. 23,800 1,048,648
CARREFOUR SUPERMARCHE
Supermarket operator in
Europe, the Americas, and
Taiwan (Retailing) .......................... 1,736 902,878
CIE GENERALE DES EAUX
Water purification and
distribution; energy production
(Industrial Goods and Services) ............. 9,780 1,137,278
ELF AQUITAINE
Oil and gas exploration;
manufacturer of chemical
compounds (Resources) ....................... 12,140 1,497,716
FRANCE TELECOM*
Provider of telecommunications
services (Telecommunications) ............... 16,028 604,569
LAFARGE
Producer and seller of
building materials
(Construction and Property) ................. 13,528 842,425
- ---------
See footnotes on page 12.
- -----
8
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON INTERNATIONAL FUND
SHARES VALUE
--------- --------
FRANCE (CONTINUED)
SGS-THOMSON MICROELECTRONICS*
Manufacturer of semiconductor
integrated circuits (Electronics) ........... 12,726 $ 902,647
USINOR SACILOR
Producer of steel products
(Metals) .................................... 61,070 1,007,730
-----------
10,542,671
-----------
GERMANY 9.53%
ADIDAS
Manufacturer of sporting
goods (Retailing) ........................... 7,572 1,099,900
BAYER
Producer of specialty chemicals,
pharmaceuticals, and plastics
(Chemicals) ................................. 29,208 1,048,003
BAYERISCHE VEREINSBANK*
Provider of universal banking
services (Banking) .......................... 19,124 1,105,638
LUFTHANSA
Airline services worldwide;
operator of Penta hotels
(Transportation) ............................ 63,416 1,112,014
MANNESMANN
Plant and machinery construction;
automotive technology
(Industrial Goods and Services) ............. 3,352 1,416,106
METRO
Department store
operator (Retailing) ........................ 713 31,360
SKW TROSTBERG
Conglomerate involved in
construction materials, chemicals,
and agrochemicals (Chemicals) ............... 27,023 930,506
THYSSEN
Manufacturer of steel
products (Metals) ........................... 5,536 1,222,248
VOLKSWAGEN
Manufacturer of economy
and luxury cars and trucks
(Automotive and Related) .................... 1,580 935,409
-----------
8,901,184
-----------
HONG KONG 0.72%
CHEUNG KONG
Real estate investment
and development
(Construction and Property) ................. 7,000 48,674
HANG SENG BANK
Provider of commercial
banking and related financial
services (Banking) .......................... 7,900 68,729
HUTCHISON WHAMPOA Holding company with major
interests in finance and property
investment (Industrial Goods
and Services) ............................... 17,000 117,659
NEW WORLD DEVELOPMENT
Property investor and developer
(Construction and Property) ................. 14,000 49,263
NEW WORLD INFRASTRUCTURE*
Developer and operator
of infrastructure projects
(Construction and Property) ................. 50,000 98,965
SUN HUNG KAI PROPERTIES
Property developer
(Construction and Property) ................. 6,000 44,243
SWIRE PACIFIC
Conglomerate with major
interests in property
development and aviation
(Construction and Property) ................. 17,000 90,828
TELEVISION BROADCASTS
Television broadcasting,
program production, and licensing
(Media) ..................................... 34,000 94,567
WHARF HOLDINGS
Real estate investment manager
(Construction and Property) ................. 31,000 63,363
-----------
676,291
-----------
HUNGARY 1.33%
MOL MAGYAR OLAJ-ES GAZIPARI (GDRS)
Oil and gas producer and
distributor (Resources) ..................... 28,300 614,110
MOL MAGYAR OLAJ-ES
GAZIPARI (GDRS)+
Oil and gas producer and
distributor (Resources) ..................... 29,000 623,500
-----------
1,237,610
-----------
INDIA 1.66%
GUJURAT AMBUJA CEMENT (GDRS)
Cement producer
(Building Materials) ........................ 60,300 508,027
- ---------
See footnotes on page 12.
-----
9
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON INTERNATIONAL FUND
SHARES VALUE
--------- --------
INDIA (CONTINUED)
HINDALCO INDUSTRIES (GDRS)+
Producer of aluminum and
aluminum products (Metals) .................. 18,200 $ 525,980
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
communications services
(Telecommunications) ........................ 39,000 511,875
-----------
1,545,882
-----------
ITALY 3.77%
ENI
Refiner and marketer of oil
and gas (Resources) ......................... 188,211 1,056,156
ISTITUTO NAZIONALE DELLE ASSICURAZIONI
Provider of life and non-life
insurance products (Insurance) .............. 37,120 828,171
TELECOM ITALIA
Provider of telecommunications
services (Telecommunications) ............... 405,806 1,636,141
-----------
3,520,468
-----------
JAPAN 15.58%
AOYAMA TRADING
Retailer of clothing
(Retailing) ................................. 7,500 201,422
AUTOBACS SEVEN
Manufacturer and retailer of
automobile and truck parts
(Retailing) ................................. 10,000 521,327
BANK OF TOKYO MITSUBISHI
Provider of a broad range
of financial services
(Financial Services) ........................ 48,000 626,590
BENESSE
Provider of educational
services (Business Services) ................ 7,000 208,947
CSK
Information services company
(Business Services) ......................... 21,000 660,015
DAI NIPPON PRINTING
Provider of printing services for
commercial and industrial uses
(Industrial Goods and Services) ............. 25,000 498,877
DENNY'S
Restaurant operator (Restaurants) ........... 9,000 234,223
EAST JAPAN RAILWAY
Provider of railway services
(Transportation) ............................ 114 554,502
FUJITSU BUSINESS SYSTEMS
Electronic and communications
equipment dealer
(Business Services) ......................... 8,000 163,632
HOKKAI CAN
Manufacturer of cans for the
food industry (Manufacturing) ............... 46,000 139,603
ISHIKAWAJIMA-HARIMA
Manufacturer of industrial heavy
machinery and equipment
(Industrial Goods and Services) ............. 232,000 526,615
JAPAN AIRPORT TERMINAL
Provider of management and
maintenance services for Haneda
airport terminal (Transportation) ........... 22,000 215,848
JAPAN TOBACCO
Tobacco producer (Tobacco) .................. 63 517,012
KAO
Manufacturer of cosmetics
and personal care products
(Consumer Products) ......................... 36,000 502,869
MITSUBISHI MATERIALS
Non-ferrous smelter and
cement producer (Metals) .................... 263,000 743,494
MITSUI CHEMICALS
Producer of petrochemical
products (Chemicals) ........................ 254,400 812,252
MITSUI MARINE & FIRE
Provider of non-life insurance
(Insurance) ................................. 73,000 429,733
MITSUI O.S.K. LINES
Shipping company
(Transportation) ............................ 308,000 494,255
NITTO DENKO
Producer of industrial materials
(Industrial Goods and Services) ............. 27,000 487,154
NOMURA SECURITIES
Securities firm
(Financial Services) ........................ 58,000 675,148
PIONEER ELECTRONIC+
Manufacturer of audio
equipment, including
laser disks (Electronics) ................... 36,000 592,666
SECOM
Security services pioneer
(Retailing) ................................. 7,000 452,814
- ---------
See footnotes on page 12.
- -----
10
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON INTERNATIONAL FUND
SHARES VALUE
--------- --------
JAPAN (CONTINUED)
SUMITOMO BANK
Provider of commercial
banking services (Banking) .................. 59,000 $ 627,920
SUMITOMO METAL INDUSTRIES
Blast furnace and steel
producer (Metals) ........................... 349,000 699,335
SUMITOMO REALTY & DEVELOPMENT
Real estate developer
(Construction and Property) ................. 96,000 701,621
SUMITOMO TRUST AND BANKING
Trust bank with commercial
banking operations (Banking) ................ 48,000 365,977
TOHO
Producer and distributor of movies,
TV dramas, and videos (Media) ............... 2,000 262,742
TOSHIBA
Diversified manufacturer of
consumer and industrial
electronics (Electronics) ................... 154,000 697,847
TSUBAKI NAKASHIMA
Manufacturer of ball bearings
(Manufacturing) ............................. 36,000 246,944
YAMAHA
Manufacturer of musical
instruments and audio
equipment (Manufacturing) ................... 35,000 453,979
YORK-BENIMARU
Supermarket chain operator
(Retailing) ................................. 13,000 236,717
-----------
14,552,080
-----------
MEXICO 1.85%
DESC (ADRS)
Diversified product manufacturer;
financial services provider
(Manufacturing) ............................. 34,894 1,182,034
GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) ........................ 30,400 547,200
-----------
1,729,234
-----------
NETHERLANDS 5.42%
AKZO NOBEL
Manufacturer of diversified
chemicals (Chemicals) ....................... 8,277 1,453,201
ELSEVIER
Global printer and publisher
of professional trade journals
and magazines (Media) ....................... 49,587 776,189
ING GROEP
Worldwide underwriter of
reinsurance; provider of financial
and consumer credit (Insurance) ............. 32,884 1,375,440
PHILIPS ELECTRONICS
Consumer and industrial
electronics (Electronics) ................... 18,757 1,463,210
-----------
5,068,040
-----------
PORTUGAL 1.70%
ELECTRICIDADE DE PORTUGAL
Generator and distributor
of electricity (Utilities) .................. 30,378 531,679
PORTUGAL TELECOM
Provider of telecommunications
services (Telecommunications) ............... 12,300 507,375
TELECEL-COMUNICACAOES PESSOAIS*
Cellular communications
operator (Telecommunications) ............... 6,100 549,363
-----------
1,588,417
-----------
RUSSIA 1.65%
TATNEFT (ADRS)+
Oil and gas explorer and
producer (Resources) ........................ 10,240 1,472,000
TATNEFT (ADRS)
Oil and gas explorer and
producer (Resources) ........................ 480 70,440
-----------
1,542,440
-----------
SPAIN 4.33%
BANCO BILBAO VIZCAYA
Provider of banking services
(Banking) ................................... 41,889 1,116,007
ENDESA
Producer, transmitter, and
distributor of electricity
to other utilities (Utilities) .............. 71,784 1,347,087
SOL MELIA
Hotel manager and franchise
company (Leisure and Hotels) ................ 11,862 357,054
TELEFONICA DE ESPANA
Provider of telecommunications
services (Telecommunications) ............... 45,050 1,224,906
-----------
4,045,054
-----------
SWEDEN 3.43%
ASTRA
Developer, manufacturer, and
marketer of pharmaceuticals
(Health and Household) ...................... 54,322 875,695
- ---------
See footnotes on page 12.
-----
11
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON INTERNATIONAL FUND
SHARES VALUE
--------- --------
SWEDEN (CONTINUED)
ELECTROLUX (SERIES B)
Manufacturer of appliances
and outdoor and industrial
products (Consumer Products) ................ 9,989 $ 825,097
L.M. ERICSSON TELEFON (SERIES B)
Manufacturer of
telecommunications equip-
ment (Telecommunications) ................... 34,175 1,502,498
-----------
3,203,290
-----------
SWITZERLAND 5.50%
CS HOLDINGS
Banking group (Banking) ..................... 8,497 1,192,609
NOVARTIS
Manufacturer of pharmaceuticals
(Health and Household) ...................... 903 1,409,100
ROCHE HOLDINGS
European pharmaceutical
company and chemical producer
(Health and Household) ...................... 143 1,252,083
ZURICH VERSICHERUNGS
Provider of insurance services
(Insurance) ................................. 3,134 1,288,969
-----------
5,142,761
-----------
TAIWAN 0.24%
THE ROC TAIWAN FUND
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 26,000 225,875
-----------
UNITED KINGDOM 21.74%
B.A.T. INDUSTRIES
Manufacturer of tobacco
products; financial services
company (Tobacco) ........................... 180,000 1,578,777
BRITISH BIOTECH
Biotechnology company
(Health and Household) ...................... 215,000 365,625
BRITISH PETROLEUM
Oil producer, refiner, and
distributor (Resources) ..................... 100,000 1,468,532
BUNZL
Distributor and manufacturer
of paper and plastic products
(Manufacturing) ............................. 295,000 1,225,759
CARADON
Supplier of building products
(Building Materials) ........................ 180,000 573,004
DIXONS GROUP
Consumer electronics retailer
(Retailing) ................................. 73,000 849,428
FKI BABCOCK
Electrical engineering company
(Industrial Goods and Services) ............. 290,000 949,896
GRANADA GROUP
Television group with additional
leisure interests, including
hotels (Leisure and Hotels) ................. 111,000 1,524,995
LAPORTE
Producer and seller of
specialty chemicals (Chemicals) ............. 70,000 775,817
NATIONAL POWER
Electric power generation
(Utilities) ................................. 140,000 1,162,260
RAILTRACK GROUP
Monopoly provider of rail
services (Transportation) ................... 102,101 1,619,131
RENTOKIL
Provider of commercial services
such as pest control and office
maintenance (Business Services) ............. 109,200 437,272
REUTERS HOLDINGS
International news and
information organization (Media) ............ 90,000 974,861
ROLLS ROYCE
Aerospace; power generation,
transmission, and distribution
systems (Industrial Goods
and Services) ............................... 249,500 876,807
ROYAL BANK OF SCOTLAND
Provider of banking services
(Banking) ................................... 122,000 1,279,575
TESCO
Supermarket chain (Retailing) ............... 233,000 1,841,617
UNITED UTILITIES
Provider of water utility
services (Utilities) ........................ 90,000 1,093,231
WPP GROUP
Provider of worldwide marketing
services, including advertising,
public relations, and market
research (Media) ............................ 375,500 1,717,529
-----------
20,314,116
-----------
TOTAL INVESTMENTS 96.50%
(Cost $80,689,715) ............................. 90,160,296
OTHER ASSETS
LESS LIABILITIES 3.50% ........................ 3,273,737
-----------
NET ASSETS 100.00% ............................ $93,434,033
===========
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
- -----
12
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SHARES VALUE
--------- --------
COMMON STOCKS 82.58%
ARGENTINA 3.11%
BANCO RIO DE LA PLATA (ADRS)*
Provider of commercial and
investment banking services
(Financial Services) ........................ 45,300 $ 475,650
IRSA INVERSIONES Y REPRESENTACIONES
(GDRS)
Real estate developer
(Construction and Property) ................. 39,300 1,326,375
PEREZ (ADRS)
Producer of oil and gas, and
provider of energy services
(Resources) ................................. 111,810 1,396,216
SIDERCA
Manufacturer and
producer of steel (Metals) .................. 15,637 38,333
-----------
3,236,574
-----------
BRAZIL 9.59%
COMPANHIA DE SANEAMENTO
BASICO DO ESTADO SAO PAULO "SABESP"
Provider of water treatment
and distribution services
(Electric Utilities) ........................ 10,144,000 2,208,218
COMPANHIA ENERGETICA DE
MINAS GERAIS "CEMIG" (ADRS)
Provider of electrical utility
services (Electric Utilities) ............... 64,500 2,515,500
COMPANHIA PARANAENSE DE
ENERGIA "COPEL" (ADRS)
Provider of electrical utility
services (Electric Utilities) ............... 39,800 475,112
ERICSSON TELECOMUNICACOES*
Manufacturer of
telecommunications equipment
(Telecommunications) ........................ 7,700,000 239,556
PETROLEO BRASILEIRO "PETROBRAS"
Oil and gas producer and
distributor (Resources) ..................... 9,700,000 1,944,399
TELECOMUNICACOES BRASILEIRAS
"TELEBRAS" (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 25,700 2,602,125
-----------
9,984,910
-----------
CHILE 5.73%
BANCO SANTANDER CHILE (ADRS)
Provider of banking services
(Financial Services) ........................ 74,600 969,800
COMPANIA DE TELECOMUNICACIONES
DE CHILE "CTC" (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 66,000 1,831,500
DISTRIBUCION Y SERVICIO (ADRS)*
Supermarket operator
(Consumer Goods and Services) ............... 77,000 1,352,312
ENERSIS (ADRS)
Provider of electric utility
services (Electric Utilities) ............... 54,800 1,808,400
-----------
5,962,012
-----------
CHINA 5.10%
CHINA EVERBRIGHT*
Department store and
supermarket operator;
property investor and
developer (Diversified) ..................... 920,000 987,840
CNPC HONG KONG*
Explorer and producer
of crude oil (Resources) .................... 1,900,000 792,691
HUANENG POWER INTERNATIONAL
(ADRS)*
Developer and manufacturer
of coal-fired power plants
(Electric Utilities) ........................ 103,000 2,266,000
QINGLING MOTORS*
Manufacturer of
lightweight trucks
(Automotive Manufacturing) .................. 1,930,000 1,260,867
-----------
5,307,398
-----------
EGYPT 3.65%
COMMERCIAL INTERNATIONAL BANK+
Provider of banking services
(Financial Services) ........................ 54,000 1,188,000
MIBANK (GDSS)+
Diversified banking services
provider (Financial Services) ............... 62,000 988,900
MIBANK (GDSS)
Diversified banking services
provider (Financial Services) ............... 18,000 281,250
SUEZ CEMENT (GDRS)*+
Cement manufacturer
(Construction and Property) ................. 58,000 1,342,700
-----------
3,800,850
-----------
ESTONIA 0.81%
SOCIETIE GENERAL BALTIC REPUBLICS FUND
Investor in the Baltic
Republics (Financial Services) .............. 3,200 848,000
-----------
- ---------
See footnotes on page 21.
- -----
18
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SHARES VALUE
--------- --------
GREECE 1.13%
ALPHA CREDIT BANK
Provider of banking services
(Financial Services) ........................ 6,000 $ 395,379
MAILLIS
Producer of packaging
and packaging systems
(Manufacturing) ............................. 54,000 779,112
-----------
1,174,491
-----------
HUNGARY 2.95%
MOL MAGYAR OLAJ-ES GAZIPARI
(GDRS)+
Oil and gas producer and
distributor (Resources) ..................... 45,000 967,500
OTP BANK (GDRS)+
Provider of commercial banking
services (Financial Services) ............... 19,620 591,151
RICHTER GEDEON (GDRS)
Manufacturer of pharmaceuticals
and cosmetics (Drugs and
Health Care) ................................ 16,300 1,515,900
-----------
3,074,551
-----------
INDIA 5.13%
BSES (GDRS)*
Provider of electric utility
services (Electric Utilities) ............... 41,000 662,150
HINDALCO INDUSTRIES (GDRS)
Producer of aluminum and
aluminum products (Metals) .................. 45,000 1,300,500
MAHINDRA & MAHINDRA (GDRS)
Manufacturer of automobiles,
automobile components, and
farm equipment (Manufacturing) .............. 71,000 745,500
RELIANCE INDUSTRIES (GDRS)
Manufacturer of synthetic
fibers and petrochemicals
(Diversified) ............................... 50,000 1,050,000
STATE BANK OF INDIA (GDRS)
Provider of banking services
(Financial Services) ........................ 20,400 388,110
STATE BANK OF INDIA (GDRS)+
Provider of banking services
(Financial Services) ........................ 29,600 529,100
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
telecommunications services
(Telecommunications) ........................ 51,000 669,375
-----------
5,344,735
-----------
INDONESIA 0.29%
BANK DAGANG NASIONAL INDONESIA
Provider of commercial banking
services (Financial Services) ............... 354,000 47,871
KAWASAN INDUSTRI JABABEKA
Developer of industrial estates
and facilities (Construction
and Property) ............................... 580,000 255,409
-----------
303,280
-----------
LEBANON 1.25%
BANQUE AUDI (GDRS)+
Commercial bank
(Financial Services) ........................ 47,200 1,298,000
-----------
LITHUANIA 0.83%
HERMIS BANK (GDRS)
Provider of commercial and
retail banking services
(Financial Services) ........................ 75,000 862,500
-----------
MALAYSIA 0.08%
FRASER & NEAVE HOLDINGS
Manufacturer of glass bottles and
glass products (Manufacturing) .............. 32,900 80,793
-----------
MEXICO 10.26%
ALFA
Producer of steel, chemicals,
and food products (Industrial
Goods and Services) ......................... 207,900 1,526,669
DESC (ADRS)
Diversified product
manufacturer; financial
services provider (Diversified) ............. 59,975 2,031,653
FOMENTO ECONOMICO MEXICANO "FEMSA"
(SERIES B)*
Beverage and packaging
producer; retail store operator
(Consumer Goods and Services) ............... 297,500 2,099,373
GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) ........................ 95,600 1,720,800
GRUPO TELEVISA (GDRS)*
Provider of television and
other media services
(Leisure and Hotels) ........................ 44,700 1,385,700
- ---------
See footnotes on page 21.
-----
19
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SHARES VALUE
--------- --------
MEXICO (CONTINUED)
PANAMERICAN BEVERAGES (ADRS)
Producer of Coca-Cola and
other beverages (Consumer
Goods and Services) ......................... 62,100 $ 1,925,100
-----------
10,689,295
-----------
PHILIPPINES 1.24%
PHILIPPINE LONG DISTANCE TELEPHONE
Telephone utility
(Telecommunications) ........................ 30,000 742,574
SM PRIME HOLDINGS
Developer and operator
of retail properties
(Construction and Property) ................. 3,150,000 552,475
-----------
1,295,049
-----------
POLAND 0.32%
KGHM POLSKA MIEDZ*
Producer of copper, silver,
and related products (Metals) ............... 34,000 336,600
-----------
PORTUGAL 4.21%
JERONIMO MARTINS
Retailer of food and
consumer products (Retailing) ............... 19,333 1,259,300
PORTUGAL TELECOM
Provider of telecommunications
services (Telecommunications) ............... 6,000 245,200
PORTUGAL TELECOM (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 18,000 742,500
SONAE INVESTIMENTOS
Hypermarket operator (Retailing) ............ 32,000 1,190,824
TELECEL-COMUNICACAOES PESSOAIS*
Cellular communications
operator (Telecommunications) ............... 10,550 950,128
-----------
4,387,952
-----------
RUSSIA 8.59%
LUKOIL HOLDING (ADRS)
Prospector, extractor, and
transporter of oil and gas
(Resources) ................................. 10,800 943,615
MOSENERGO (ADRS)
Producer and distributor of
electric and thermal energy
(Electric Utilities) ........................ 29,500 1,316,467
NIZHNY NOVGOROD TELEPHONE (RDCS)*
Telephone utility
(Telecommunications) ........................ 13 2,145,000
ROSTELKOM (RDCS)*
Provider of long distance and
international telecommunications
services (Telecommunications) ............... 22 671,000
SURGUTNEFTEGAZ (ADRS)
Oil and natural gas provider
(Resources) ................................. 101,500 938,875
TATNEFT (ADRS)+
Oil and gas explorer and
producer (Resources) ........................ 20,400 2,932,500
-----------
8,947,457
-----------
SAUDI ARABIA 1.39%
SAUDI ARABIA INVESTMENT FUND*
Closed-end fund investing in
Saudi Arabia (Miscellaneous) ................ 158,400 1,445,400
-----------
SLOVENIA 0.25%
SKB BANKA (GDRS)+
Provider of commercial,
savings, and investment
banking services
(Financial Services) ........................ 14,000 255,500
-----------
SOUTH AFRICA 6.00%
BARLOW
Producer and distributor of
products used in building
and construction and other
industries (Construction
and Property) ............................... 100,000 1,007,374
LIBERTY LIFE ASSOCIATION OF AFRICA
Provider of life and health
insurance (Financial Services) .............. 43,000 1,071,762
METRO CASH & CARRY
Retailer of food and consumer
products (Retailing) ........................ 1,280,000 1,153,848
SASOL
Fuel and chemical producer
(Diversified) ............................... 76,000 915,567
- ---------
See footnotes on page 21.
- -----
20
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND
SHARES VALUE
--------- --------
SOUTH AFRICA (CONTINUED)
SOUTH AFRICAN BREWERIES
Producer of beer and other
beverages (Consumer Goods
and Services) ............................... 42,500 $ 1,126,389
STANDARD BANK INVESTMENT
Provider of commercial banking
services (Financial Services) ............... 23,000 974,556
-----------
6,249,496
-----------
SOUTH KOREA 0.49%
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics and semiconductors
(Manufacturing) ............................. 10,491 469,062
SK TELECOM
Provider of mobile
telecommunications
and paging services
(Telecommunications) ........................ 130 43,937
-----------
512,999
-----------
TAIWAN 8.56%
CHINA STEEL (GDRS)
Producer of steel and steel
products (Metals) ........................... 60,475 887,471
FORMOSA FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 90 824,130
FORMOSA GROWTH FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 102,000 1,811,520
HOTUNG INVESTMENT HOLDINGS*
Investor in unlisted
technology-related companies
(Financial Services) ........................ 2,500,000 593,750
SILICONWARE PRECISION INDUSTRIES
(GDRS)
Integrated circuit packaging
(Industrial Goods and Services) ............. 112,000 1,078,000
SYNNEX TECHNOLOGY INTERNATIONAL
(GDRS)
Manufacturer of PCs and
peripherals (Consumer Goods
and Services) ............................... 57,000 994,650
TAIPEI FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 90 907,740
TAIWAN OPPORTUNITIES FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 140,000 1,813,000
-----------
8,910,261
-----------
THAILAND 0.34%
EXPLORATION & PRODUCTION
Producer of natural gas
(Resources) ................................. 35,000 356,522
-----------
TURKEY 1.28%
MIGROS TURK
Retailer of food and consumer
products (Retailing) ........................ 1,268,750 1,330,253
-----------
TOTAL INVESTMENTS 82.58%
(Cost $86,155,869) ............................. 85,994,878
OTHER ASSETS
LESS LIABILITIES 17.42% ....................... 18,143,965
------------
NET ASSETS 100.00% ............................ $104,138,843
============
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
-----
21
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SHARES VALUE
--------- --------
COMMON STOCKS 96.30%
AUSTRALIA 0.35%
PACIFICA GROUP
Manufacturer of industrial
products, mainly automobile
components (Automotive
and Related) ................................ 215,300 $ 679,643
-----------
BRAZIL 2.44%
COMPANHIA ENERGETICA DE MINAS
GERAIS "CEMIG" (ADRS)
Provider of electrical utility services
(Electric and Gas Utilities) ................ 18,100 705,900
PETROLEO BRASILEIRO"PETROBRAS"
Oil and gas producer and
distributor (Resources) ..................... 81,000 1,609,049
TELECOMUNICACOES BRASILEIRAS
"TELEBRAS" (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 23,550 2,384,437
-----------
4,699,386
-----------
CHINA 0.51%
HUANENG POWER INTERNATIONAL (ADRS)*
Developer and manufacturer
of coal-fired power plants
(Electric and Gas Utilities) ................ 45,000 990,000
-----------
FINLAND 3.15%
NOKIA
Developer and manufacturer
of mobile phones and networks
(Telecommunications) ........................ 29,055 2,531,684
OUTOKUMPU
Manufacturer of diversified
metal products (Industrial
Goods and Services) ......................... 90,770 1,347,359
RAISION TEHTAAT
Processor and marketer
of agricultural products
(Consumer Goods and Services) ............... 20,300 2,191,464
-----------
6,070,507
-----------
FRANCE 5.27%
ACCOR
Hotel operator and
provider of related services
(Entertainment and Leisure) ................. 13,558 2,516,012
CAP GEMINI
Provider of computer
consulting services (Computer
and Technology Related) ..................... 29,080 2,301,297
GENSET*
Biomedical research company
(Drugs and Health Care) ..................... 36,000 672,750
SGS-THOMSON MICROELECTRONICS*
Manufacturer of semiconductor
integrated circuits (Electronics) ........... 36,070 2,558,421
VALEO
Manufacturer of automobile
components (Automotive
and Related) ................................ 31,698 2,107,011
-----------
10,155,491
-----------
GERMANY 5.84%
ADIDAS
Manufacturer of sporting goods
(Consumer Goods and Services) ............... 27,080 3,933,609
LUFTHANSA
Airline services worldwide;
operator of Penta hotels
(Transportation) ............................ 128,000 2,244,509
METRO
Department store operator
(Retailing) ................................. 44,400 1,952,834
PORSCHE*
Manufacturer of luxury sports cars
(Automotive and Related) .................... 2,115 3,115,064
-----------
11,246,016
-----------
HONG KONG 0.77%
KWOON CHUNG BUS HOLDINGS
Provider of bus services
(Transportation) ............................ 1,800,000 541,397
NG FUNG HONG
Food wholesaler and distributor
(Consumer Goods and Services) ............... 1,000,000 937,904
-----------
1,479,301
-----------
HUNGARY 2.78%
MOL MAGYAR OLAJ-ES GAZIPARI
(GDRS)
Oil and gas producer and
distributor (Resources) ..................... 110,000 2,387,000
RICHTER GEDEON (GDRS)
Manufacturer of
pharmaceuticals and cosmetics
(Drugs and Health Care) ..................... 32,000 2,976,000
-----------
5,363,000
-----------
- ------------
See footnotes on page 31.
-----
27
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SHARES VALUE
--------- --------
INDIA 1.07%
STATE BANK OF INDIA (GDRS)+
Provider of banking services
(Financial Services) ........................ 42,300 $ 756,113
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
telecommunications services
(Telecommunications) ........................ 100,000 1,312,500
-----------
2,068,613
-----------
INDONESIA 0.35%
GULF INDONESIA RESOURCES*
Developer and producer of
oil and natural gas (Resources) ............. 32,000 672,000
-----------
IRELAND 0.83%
ELAN (ADRS)*
Developer, manufacturer,
and marketer of drug
delivery systems (Drugs
and Health Care) ............................ 32,000 1,596,000
-----------
ITALY 1.73%
AEROPORTI DI ROMA
Manager, operator, and
developer of airfields and
terminals (Transportation) .................. 139,600 1,263,518
MEDIOLANUM*
Life insurer; provider of
a wide range of financial
services (Financial Services) ............... 124,000 2,075,803
-----------
3,339,321
-----------
JAPAN 9.62%
ASAHI DIAMOND INDUSTRIES
Manufacturer of diamond-tipped
tools (Manufacturing and
Industrial Equipment) ....................... 100 582
BELLSYSTEM 24
Telemarketer (Business Goods
and Services) ............................... 8,400 1,159,391
DAITEC
Developer of point-of-sale
systems for Nippon Oil Company
(Business Goods and Services) ............... 38,700 611,374
DDI
Provider of long distance and mobile
telecommunications services
(Telecommunications) ........................ 250 835,620
DIAMOND COMPUTER SERVICE
Provider of data processing
and software development
services (Computer and
Technology Related) ......................... 59,000 1,005,654
HIS
Travel agency specializing
in overseas and package tours
(Entertainment and Leisure) ................. 46,200 1,501,971
HOGY MEDICAL
Producer of disposable surgical
gowns and medical supplies
(Drugs and Health Care) ..................... 37,300 1,221,934
KEYENCE
Manufacturer of detection
devices and measuring control
equipment (Electronics) ..................... 9,500 1,421,801
KYOCERA
Supplier of semiconductor
packaging, capacitors, and
cellular components (Electronics) ........... 25,000 1,432,194
MEITEC
Provider of software engineering
services (Computer and
Technology Related) ......................... 59,100 1,744,450
NOMURA SECURITIES
Securities firm
(Financial Services) ........................ 140,000 1,629,667
ORIENTAL LAND
Operator of Tokyo Disneyland
(Entertainment and Leisure) ................. 17,000 883,429
SANYO SHINPAN FINANCE
Consumer finance company
(Financial Services) ........................ 29,000 1,584,186
SECOM
Security services pioneer
(Support Services) .......................... 23,000 1,487,819
SHIMACHU
Furniture retailer (Retailing) .............. 28,500 606,635
SOFTBANK
PC wholesaler (Computer
and Technology Related) ..................... 22,400 720,778
TSUTSUMI JEWELRY
Manufacturer and retailer
of jewelry (Retailing) ...................... 49,500 691,444
-----------
18,538,929
-----------
MEXICO 2.86%
DESC (ADRS)
Diversified product
manufacturer; financial
services provider (Diversified) ............. 123,274 4,175,907
- ------------
See footnotes on page 31.
- -----
28
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SHARES VALUE
--------- --------
MEXICO (CONTINUED)
GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) ........................ 73,600 $ 1,324,800
-----------
5,500,707
-----------
NETHERLANDS 5.58%
ELSEVIER
Global printer and publisher
of professional trade journals
and magazines (Publishing) .................. 117,615 1,841,035
GUCCI GROUP
Manufacturer and marketer
of apparel (Consumer Goods
and Services) ............................... 27,405 996,857
HEINEKEN
Brewery and soft drink producer
(Consumer Goods and Services) ............... 11,885 1,926,242
KONINKLIJKE KNP BT
Producer of paper and plastic
packaging products (Business
Goods and Services) ......................... 55,530 1,259,649
KONINKLIJKE VAN OMMEREN
Provider of logistic services
to marine transport industry
(Transportation) ............................ 49,615 1,769,691
PHILIPS ELECTRONICS
Consumer and industrial
electronics (Electronics) ................... 37,900 2,956,531
-----------
10,750,005
-----------
NORWAY 1.53%
TOMRA SYSTEMS
Provider of recycling systems
used mainly for beverage cans
(Business Goods and Services) ............... 115,000 2,944,356
-----------
RUSSIA 0.84%
TATNEFT (ADRS)
Oil and gas explorer and
producer (Resources) ........................ 11,000 1,614,258
-----------
SINGAPORE 1.43%
ADVANCED SYSTEMS AUTOMATION
Manufacturer of machines for
packaging integrated circuits
(Manufacturing and Industrial
Equipment) .................................. 340,000 660,362
DATACRAFT ASIA
Researcher, designer, and
producer of communications
hardware and software
(Telecommunications) ........................ 418,000 953,040
ELECTRONIC RESOURCES
Distributor of electronic
components and computer
peripherals (Electronics) ................... 500,000 552,206
WANT WANT HOLDINGS (CLASS A)*
Manufacturer of rice crackers
(Consumer Goods and Services) ............... 210,400 420,800
WANT WANT HOLDINGS*
Manufacturer of rice crackers
(Consumer Goods and Services) ............... 83,600 162,184
-----------
2,748,592
-----------
SOUTH KOREA 0.22%
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics and semiconductors
(Electronics) ............................... 11,382 214,835
SAMSUNG ELECTRONICS+
Manufacturer of consumer
electronics and semiconductors
(Electronics) ............................... 4,777 213,584
-----------
428,419
-----------
SPAIN 3.19%
AGUAS DE BARCELONA
Drinking water supplier; liquid
and solid waste management
(Consumer Goods and Services) ............... 38,875 1,549,569
SOL MELIA*
Hotel manager and franchise
company (Entertainment
and Leisure) ................................ 62,376 1,877,560
TABACALERA (CLASS A)
Manufacturer and marketer
of tobacco products (Tobacco) ............... 37,990 2,726,767
-----------
6,153,896
-----------
SWEDEN 4.16%
AUTOLIV (ADRS)
Manufacturer and worldwide
retailer of automobile airbags
and other safety equipment
(Automotive and Related) .................... 54,950 2,166,679
KALMAR INDUSTRIES
Manufacturer of forklifts and
special lift trucks (Manufacturing
and Industrial Equipment) ................... 83,600 1,459,046
- ------------
See footnotes on page 31.
-----
29
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SHARES VALUE
--------- --------
SWEDEN (CONTINUED)
KALMAR INDUSTRIES (RIGHTS)*
Manufacturer of forklifts and
special lift trucks (Manufacturing
and Industrial Equipment) ................... 83,600 $ 73,509
L.M. ERICSSON TELEFON (SERIES B)
Manufacturer of telecommu-
nications equipment
(Telecommunications) ........................ 97,950 4,306,355
-----------
8,005,589
-----------
SWITZERLAND 1.54%
SWISSAIR
International airline operator
(Transportation) ............................ 2,221 2,966,391
-----------
TAIWAN 0.55%
HOTUNG INVESTMENT HOLDINGS*
Investor in unlisted
technology-related
companies (Financial Services) .............. 2,400,000 570,000
SYNNEX TECHNOLOGY INTERNATIONAL (GDRS)*
Manufacturer of PCs and
peripherals (Computer and
Technology Related) ......................... 28,400 495,580
-----------
1,065,580
-----------
THAILAND 0.38%
SERM SUK
Manufacturer and distributor
of Pepsi-Cola drinks under
franchise (Consumer Goods
and Services) ............................... 50,500 737,739
-----------
UNITED KINGDOM 11.40%
AIRTOURS
Tour operator (Entertainment
and Leisure) ................................ 40,000 792,488
BODYCOTE INTERNATIONAL
Diversified manufacturer and
distributor (Industrial Goods
and Services) ............................... 100,000 1,721,525
BRITISH BIOTECH
Biotechnology company
(Drugs and Health Care) ..................... 300,000 510,175
CAPITAL RADIO
Radio broadcasting company
(Entertainment and Leisure) ................. 150,000 1,181,192
CRT GROUP
Provider of training and
recruitment services; publisher
of multimedia products
(Support Services) .......................... 350,000 1,888,232
DIXONS GROUP
Consumer electronics retailer
(Retailing) ................................. 90,000 1,047,240
GRANADA GROUP
Television group with additional
leisure interests including hotels
(Entertainment and Leisure) ................. 128,800 1,769,543
HALMA
Producer of fire detection and
security equipment (Electronics) ............ 503,066 1,003,006
LADBROKE GROUP
Leisure group with interests
in hotels and gaming
(Entertainment and Leisure) ................. 500,000 2,232,537
PARITY
Provider of software engineering
and consulting services
(Computer and
Technology Related) ......................... 300,000 2,885,125
PIZZA EXPRESS
Operator of restaurant
chain (Restaurants) ......................... 245,000 3,054,010
ROLLS ROYCE
Aerospace; power generation,
transmission, and distribution
systems (Aerospace) ......................... 450,000 1,581,415
WPP GROUP
Provider of worldwide
marketing services, including
advertising, public relations,
and market research (Business
Goods and Services) ......................... 500,000 2,286,989
-----------
21,953,477
-----------
UNITED STATES 27.91%
ADAPTEC*
Manufacturer of computer
input-output systems (Computer
and Technology Related) ..................... 20,000 970,625
AMERICAN INTERNATIONAL GROUP
Commercial and industrial
insurer (Financial Services) ................ 24,750 2,526,047
BIOGEN*
Developer of genetically
engineered drugs (Drugs and
Health Care) ................................ 28,000 934,500
BOSTON SCIENTIFIC*
Developer, producer, and
marketer of medical devices
(Drugs and Health Care) ..................... 13,400 609,700
- ------------
See footnotes on page 31.
- -----
30
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND
SHARES VALUE
--------- --------
UNITED STATES (CONTINUED)
CARDINAL HEALTH
Distributor of pharmaceutical
products (Drugs and Health Care) ............ 32,500 $ 2,413,125
COMPAQ COMPUTERS
Global PC manufacturer
(Computer and Technology
Related) .................................... 41,200 2,626,500
DAYTON HUDSON
General merchandise retailer,
specializing in large stores
(Retailing) ................................. 19,000 1,193,437
DISNEY, WALT
Theme parks and hotel operator;
film production (Entertainment
and Leisure) ................................ 25,000 2,056,250
DONALDSON, LUFKIN & JENRETTE
Integrated investment and
merchant banker and broker
(Financial Services) ........................ 12,000 843,000
GENERAL ELECTRIC
Supplier of electrical equipment
and other industrial and
consumer products (Diversified) ............. 41,500 2,679,344
HEWLETT-PACKARD
Manufacturer of computers
and peripherals (Computer
and Technology Related) ..................... 35,300 2,177,569
INTEL
Manufacturer of microprocessors
and FLASH memory circuits
(Computer and Technology
Related) .................................... 31,000 2,387,969
INTERPUBLIC GROUP OF COMPANIES
Global advertising through
agencies in various countries
(Business Goods and Services) ............... 55,350 2,629,125
MBNA
Issuer of credit cards; deposit,
loan, and transaction processing
(Financial Services) ........................ 135,225 3,558,108
MERCK
Developer and manufacturer
of pharmaceuticals (Drugs
and Health Care) 18,600 1,660,050
MICROSOFT*
Producer of microcomputer
software (Computer and
Technology Related) ......................... 33,800 4,391,887
PEPSICO
Manufacturer and marketer
of soft drinks and consumer
products (Consumer Goods
and Services) ............................... 74,500 2,742,531
PFIZER
Ethical drugs; hospital products;
and specialty chemicals
(Drugs and Health Care) 64,400 4,556,300
PROCTER & GAMBLE
Manufacturer and distributor
of household and personal
care products (Consumer Goods
and Services) ............................... 35,600 2,420,800
TRAVELERS
Provider of broad-based financial
services (Financial Services) ............... 40,900 2,863,000
UNITED HEALTHCARE
Owner and manager of HMO
and specialty managed care
centers (Drugs and Health Care) ............. 51,700 2,394,356
WORLDCOM*
Provider of interstate long distance
telecommunications services
(Telecommunications) ........................ 81,200 2,727,812
XEROX
Developer, manufacturer, and
marketer of office automation
products (Business Goods
and Services) ............................... 30,500 2,419,031
-----------
53,781,066
-----------
TOTAL INVESTMENTS 96.30%
(Cost $155,631,405) ............................ 185,548,282
OTHER ASSETS
LESS LIABILITIES 3.70% ........................ 7,122,961
-----------
NET ASSETS 100.00% ............................ $192,671,243
============
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
-----
31
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
COMMON STOCKS 97.70%
AUSTRALIA 0.88%
AUSTRALIA NATIONAL INDUSTRIES
Manufacturer and distributor
of castings and forgings, and
specialty steels (Industrial
Goods and Services) ......................... 1,173,000 $ 1,176,941
BRISTILE*
Manufacturer of building
and construction products
(Construction and Property) ................. 243,280 241,537
CSL
Developer, manufacturer,
and marketer of human and
veterinary pharmaceutical and
diagnostic products (Medical
Products and Technology) .................... 110,620 699,092
FUTURIS
Mini-conglomerate with interests
in automobile components, building
materials, and financial services
(Automotive Parts
Manufacturing) .............................. 1,049,822 1,222,769
HIH WINTERTHUR INTERNATIONAL HOLDINGS
General insurance provider
(Financial Services) ........................ 599,800 1,115,252
JUPITERS
Casino hotel operator
(Leisure and Hotels) ........................ 610,000 1,121,377
SAVAGE RESOURCES
Explorer and producer of
diversified minerals (Resources) ............ 1,559,000 896,975
SIMSMETAL
Processor and resaler of scrap
metal (Metals) .............................. 203,000 1,139,480
SKILLED ENGINEERING
Provider of personnel
placement and outsourcing
services (Business Services) ................ 627,734 585,798
HENRY WALKER GROUP
Provider of civil engineering
and mining services
(Support Services) .......................... 738,500 1,114,062
-----------
9,313,283
-----------
AUSTRIA 0.71%
BAU HOLDINGS (VOTING PREFERENCE SHARES)
Construction and civil engineering
(Construction and Property) ................. 103,250 5,114,630
BAU HOLDINGS
Construction and civil engineering
(Construction and Property) ................. 37,894 2,355,003
-----------
7,469,633
-----------
BELGIUM 0.60%
TELINFO
Developer of telecommunications
networks for business
(Telecommunications) 119,040 6,361,400
TELINFO (RIGHTS)*
Developer of telecommunications
networks for business
(Telecommunications) 18,900 1,060
-----------
6,362,460
-----------
CANADA 0.71%
FINNING INTERNATIONAL
Lessor of construction
equipment (Construction and
Property) ................................... 250,000 3,351,658
TARRAGON OIL AND GAS*
Explorer, developer, and producer
of oil and gas (Resources) .................. 370,000 4,120,589
-----------
7,472,247
-----------
CHILE 0.10%
DISTRIBUCION Y SERVICIO (ADRS)*
Supermarket operator (Retailing) ............ 58,000 1,018,625
-----------
CHINA 0.08%
QINGLING MOTORS
Manufacturer of lightweight
trucks (Automotive Parts
Manufacturing) ................................. 1,363,000 890,446
-----------
DENMARK 1.98%
DANSKE TRAELASTKOMPAGNI
Timber supply company
(Construction and Property) ................. 85,981 7,859,252
SYDBANK
Commercial financial services
provider (Financial Services) ............... 109,700 5,672,699
THORKILD KRISTENSEN
Property development
(Construction and Property) ................. 72,983 5,938,541
THORKILD KRISTENSEN*
Property development
(Construction and Property) ................. 17,328 1,409,959
-----------
20,880,451
-----------
- -------------------
See footnotes on page 48.
-----
37
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
FINLAND 2.97%
KCI KONECRANES INTERNATIONAL
Manufacturer of cranes and
other heavy-duty lifting
equipment (Capital Goods) ................... 91,900 $ 3,454,621
NOKIAN TYRES*
Manufacturer of tires
(Automotive Parts Manufacturing) ............ 119,506 3,363,511
RAUMA
Manufacturer of forestry-related
machinery (Capital Goods) ................... 453,550 8,481,002
TAMRO
Pharmaceutical distributor for
Scandinavia and the Baltics
(Drugs and Health Care) ..................... 1,487,230 9,174,415
VALMET
Manufacturer of paper and
pulp machinery (Capital Goods) .............. 433,290 6,765,719
-----------
31,239,268
-----------
FRANCE 4.34%
ASSYSTEM
Global industrial consultant for
the nuclear, steel, oil, automobile,
space, and transportation industries
(Industrial Goods and Services) ............. 112,657 3,270,244
CENTRALE POUR L'INDUSTRIE
Diversified holding company with
interests in financial services and
insurance (Financial Services) .............. 5,743 319,527
ECIA
Manufacturer of automobile
components (Automotive Parts
Manufacturing) .............................. 43,848 7,235,456
L'EUROPEENNE D'EXTINCTEURS++
Manufacturer and distributor of
fire extinguishers (Manufacturing) .......... 142,402 9,497,650
IMS INTERNATIONAL METAL SERVICE
Distributor and broker of specialized
metal products (Metals) ..................... 124,070 1,811,491
MONTUPET
Manufacturer of automobile
components (Automotive Parts
Manufacturing) .............................. 32,068 3,629,326
REXEL
European electrical distributor
(Electrical Distribution) ................... 6,900 1,824,119
RUBIS
Chemical storage and distribution
company (Transportation) .................... 79,799 1,813,159
SYLEA
Manufacturer of automobile
components (Automotive Parts
Manufacturing) .............................. 86,233 7,599,000
TECHNIP
Engineering contractor
(Construction and Property) ................. 33,090 3,487,702
VIRBAC
Manufacturer of veterinary
drugs and products
(Veterinary Products) ....................... 66,532 5,159,364
-----------
45,647,038
-----------
GERMANY 2.99%
GERRY WEBER INTERNATIONAL*
Designer and manufacturer
of ladies' apparel (Manufacturing) .......... 4,281 132,546
HORNBACH BAUMARKT
Large home improvement and
garden center retailer (Retailing) .......... 118,090 3,485,396
HUCKE
Manufacturer of textiles and
clothing (Manufacturing) .................... 256,805 5,944,732
MOEBEL WALTHER
Retailer of furniture and related
products (Retailing) ........................ 109,770 4,446,830
PLETTAC
Manufacturer of scaffolding,
lightweight construction
sheds, and related products
(Construction and Property) ................. 33,913 6,172,423
PLETTAC (RIGHTS)*
Manufacturer of scaffolding,
lightweight construction
sheds, and related products
(Construction and Property) ................. 33,863 29,396
TARKETT
Manufacturer and distributor
of hardwood flooring
(Consumer Goods and Services) ............... 455,420 11,227,693
-----------
31,439,016
-----------
HONG KONG 0.72%
BEIJING DATANG POWER GENERATION*
Generator and distributor of
electric power (Electric Utilities) ......... 1,347,000 679,599
ESPRIT HOLDINGS
Retail and wholesale distributor
of high-quality fashion products
(Retailing) ................................. 1,511,000 537,548
- -------------------
See footnotes on page 48.
- -----
38
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
HONG KONG (CONTINUED)
JARDINE INTERNATIONAL MOTOR HOLDINGS
Seller and servicer of cars with
operations in many countries
(Retailing) ................................. 1,903,000 $ 1,378,629
JOHNSON ELECTRIC HOLDINGS
Designer, manufacturer, and
marketer of micromotors
(Electronics) ............................... 272,000 742,458
KWOON CHUNG BUS HOLDINGS
Provider of bus services
(Transportation) ............................ 1,472,000 442,743
LI & FUNG
Export trader and wholesale
distributor of consumer products
(Consumer Goods and Services) ............... 1,571,000 1,575,065
SOUTH CHINA MORNING POST
English language newspaper
(Media) ..................................... 2,569,000 2,226,688
-----------
7,582,730
-----------
INDIA 0.21%
GUJURAT AMBUJA CEMENT (GDRS)
Cement producer
(Building Materials) ........................ 260,000 2,190,500
-----------
INDONESIA 0.03%
KAWASAN INDUSTRI JABABEKA
Developer of industrial estates
and facilities (Construction
and Property) ............................... 830,000 365,499
---------
ISRAEL 0.22%
ZAG INDUSTRIES*
Designer, developer, and
manufacturer of plastic consumer
products (Manufacturing) .................... 220,000 2,268,750
---------
ITALY 0.91%
LA DORIA++
Producer of food, specializing
in fruits, fruit juices, and canned
tomatoes (Consumer Goods
and Services) ............................... 2,252,166 6,478,379
INDUSTRIE NATUZZI (ADRS)+
Manufacturer of leather
furniture (Manufacturing) ................... 127,380 2,850,128
INSTRUMENTATION LABORATORIES (ADRS)*
Developer, manufacturer and
distributor of in vitro diagnostic
instruments (Medical Products
and Technology) ............................. 95,500 250,687
-----------
9,579,194
-----------
JAPAN 8.19%
AIYA
Operator of restaurant chain
(Restaurants) ............................... 121,000 1,146,919
AOYAMA TRADING
Retailer of clothing (Retailing) ............ 84,000 2,255,924
ASAHI DIAMOND INDUSTRIES
Manufacturer of diamond-tipped
tools (Manufacturing) ....................... 166,670 970,059
ASATSU
Advertising agency (Advertising) ............ 90,100 1,872,869
DANTO
Manufacturer of wall and floor
tiles (Building Materials) .................. 132,000 987,778
ENPLAS
Manufacturer of electronic
components and engineering
plastics (Electronics) ...................... 39,000 518,833
FORVAL
Seller of telephones
(Telecommunications) ........................ 77,000 1,235,636
FUJI FIRE AND MARINE INSURANCE
Non-life insurance firm
(Financial Services) ........................ 832,000 2,656,423
FUJICCO
Food manufacturer (Consumer
Goods and Services) ......................... 131,300 1,179,047
FUJITSU BUSINESS SYSTEMS
Distributor of computer
equipment (Business Services) ............... 105,000 2,147,668
GLORY KOGYO
Manufacturer and major exporter
of currency-handling machines
(Manufacturing) ............................. 153,000 2,506,111
HIS
Travel agency specializing in
overseas and package tours
(Leisure and Hotels) ........................ 40,700 1,323,165
HIGASHI NIHON HOUSE
Home builder (Construction
and Property) ............................... 252,000 1,885,757
HITACHI INFORMATION SYSTEMS
Leading data processing firm
(Computer Software) ......................... 134,000 1,325,850
HITACHI MEDICAL
Manufacturer of medical
equipment (Medical Products
and Technology) ............................. 171,000 1,734,597
- -------------------
See footnotes on page 48.
-----
39
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
JAPAN (CONTINUED)
HOGY MEDICAL
Producer of disposable surgical
gowns and medical supplies
(Medical Products and
Technology) ................................. 20,000 $ 655,192
HOKKAI CAN
Manufacturer of cans for the
food industry (Manufacturing) ............... 366,000 1,110,751
HOKUSHIN
Producer of fiber board
(Manufacturing) ............................. 264,000 932,901
HORIBA INSTRUMENTS
Manufacturer of instruments
and analyzers (Electronics) ................. 178,000 2,012,805
ICHIYOSHI SECURITIES
Kansai-based securities
business (Financial Services) ............... 740,000 1,433,608
IINO KAIUN*
Shipping company
(Transportation) ............................ 825,000 1,852,083
JAPAN INFORMATION PROCESSING SERVICE
Computer software developer
(Computer Software) ......................... 74,450 804,731
JOSHIN DENKI
Budget electrical appliance
retailer (Retailing) ........................ 196,000 855,575
KENTUCKY FRIED CHICKEN
Fast food restaurants
(Restaurants) ............................... 102,000 1,094,038
KISSEI PHARMACEUTICAL
Manufacturer, seller, importer,
and exporter of medical products
(Drugs and Health Care) ..................... 62,000 1,010,393
KOMATSU SEIREN
Printer of long-staple fabrics
(Manufacturing) ............................. 194,000 1,572,711
KOMORI
Manufacturer of offset printing
machines (Capital Goods) .................... 133,000 2,432,859
MASPRO DENKOH
Manufacturer of reception-related
telecommunications equipment
(Telecommunications) ........................ 123,100 1,248,707
MITSUBISHI CABLE INDUSTRIES
Manufacturer of wire and cable
products (Manufacturing) .................... 332,000 952,357
MITSUI HOME
Home builder (Construction
and Property) ............................... 320,000 2,064,688
NAKAYAMA STEEL WORKS
Small blast furnace company,
mainly for the housing industry
(Metals) .................................... 709,000 1,685,990
NAMURA SHIPBUILDING
Shipbuilder (Capital Goods) ................. 229,000 704,498
NICHICON
Manufacturer of electrical
equipment (Manufacturing) ................... 162,000 2,006,984
NIPPON SEIKI
Manufacturer of automobile
components (Automotive Parts
Manufacturing) .............................. 159,700 1,327,846
NISHIO RENT ALL
Rentor of construction equipment
(Construction and Property) ................. 114,000 1,080,569
NISSHA PRINTING
Integrated printing firm
(Paper and Printing) ........................ 126,000 1,058,119
NISSHIN FIRE & MARINE INSURANCE
Non-life insurance company
(Financial Services) ........................ 404,000 1,135,379
NITTETSU MINING
Open cast coal miner (Resources) ............ 396,000 2,219,207
NOVA
Provider of language instruction
courses (Consumer Goods
and Services) ............................... 132,000 867,049
OKINAWA ELECTRIC POWER
Supplier of electricity to Okinawa
Island (Electric Utilities) ................. 69,800 1,096,882
RENGO
Manufacturer of paper board
(Paper and Printing) ........................ 260,000 1,026,856
RYOYO ELECTRO
Distributor of electronic goods
(Electronics) ............................... 151,000 1,983,704
SAGAMI CHAIN
Noodle restaurant chain
(Restaurants) ............................... 133,000 1,481,833
SANKYO
Manufacturer of pachinko game
equipment (Manufacturing) ................... 102,000 2,179,596
SANYO SPECIAL STEEL
Steel manufacturer (Metals) ................. 1,179,000 2,009,603
- -------------------
See footnotes on page 48.
- -----
40
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
JAPAN (CONTINUED)
SHIMACHU
Furniture retailer (Retailing) .............. 60,000 $ 1,277,127
SHOHKOH FUND
Finance company
(Financial Services) ........................ 3,800 1,105,845
SODICK
Manufacturer of electrodischargers
(Manufacturing) ............................. 348,000 1,678,224
SUNDRUG
Operator of outlet drug stores
(Retailing) ................................. 95,800 1,632,909
TAKASAGO
Specialty chemicals producer,
including fragrances, flavorings,
and aromatic chemicals
(Chemicals) ................................. 111,000 525,144
TOEI
Producer of movies, particularly
of animated movies (Media) .................. 228,000 1,080,569
TOKYO STYLE
Manufacturer of women's
ready-to-wear apparel
(Manufacturing) ............................. 96,000 1,013,719
TOWA PHARMACEUTICAL
Large generic drug wholesaler
(Drugs and Health Care) ..................... 187,000 1,819,157
TOYO INK MANUFACTURING
Ink manufacturer (Chemicals) ................ 305,000 907,874
TSUBAKI NAKASHIMA
Manufacturer of ball bearings
(Manufacturing) ............................. 359,900 2,468,758
TSUDAKOMA
Manufacturer of air-jet looms
(Manufacturing) ............................. 625,000 2,078,656
TSUTSUMI JEWELRY
Manufacturer and retailer of
jewelry (Retailing) ......................... 118,400 1,653,879
XEBIO
Retailer of outdoor clothing
(Retailing) ................................. 131,800 2,125,983
YOKOHAMA REITO
Cold storage, freezing, and loading
services (Distribution) ..................... 140,000 1,175,688
-----------
86,187,682
-----------
MALAYSIA 0.08%
CHEMICAL COMPANY OF MALAYSIA
Producer of industrial chemicals
and pharmaceuticals (Chemicals) ............. 231,000 276,416
CHEMICAL COMPANY OF MALAYSIA (WARRANTS)*
Producer of industrial chemicals
and pharmaceuticals (Chemicals) ............. 53,250 15,217
KFC HOLDINGS
Fast food restaurants
(Restaurants) ............................... 271,000 540,467
-----------
832,100
-----------
NETHERLANDS 3.18%
CMG
Information technology
consulting (Support Services) ............... 489,300 11,354,198
GETRONICS
Computer systems integration
consultant (Support Services) ............... 164,226 5,402,559
GUCCI GROUP
Designer, producer, and
distributor of luxury accessories
and apparel (Consumer Goods
and Services) ............................... 39,700 1,444,087
OTRA
Holding company for various
technical product wholesale
companies (Electronics) ..................... 479,803 7,633,509
SAMAS GROEP
Manufacturer of office
furniture (Manufacturing) ................... 168,812 7,667,366
-----------
33,501,719
-----------
NORWAY 0.87%
EKORNES
Manufacturer of home
furnishings (Manufacturing) ................. 1,007,000 9,167,046
-----------
SINGAPORE 0.33%
BUKIT SEMBAWANG ESTATES
Property developer
(Construction and Property) ................. 54,200 412,821
EXCEL MACHINE TOOLS*
Manufacturer of computerized
numerical-controlled machine
tools (Manufacturing) ....................... 2,039,000 899,464
INFORMATICS HOLDINGS
Operator of computer training
schools (Business Services) ................. 1,893,000 780,990
VENTURE MANUFACTURING
Contract manufacturer for the
electronics industry (Electronics) .......... 98,000 335,893
WANT WANT HOLDINGS (CLASS A)*
Manufacturer of rice crackers
(Consumer Goods and Services) ............... 393,400 786,800
- -------------------
See footnotes on page 48.
-----
41
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
SINGAPORE (CONTINUED)
WANT WANT HOLDINGS*
Manufacturer of rice crackers
(Consumer Goods and Services) ............... 159,400 $ 309,236
-----------
3,525,204
-----------
SWEDEN 3.54%
ANGPANNEFORENINGEN (CLASS B)
Engineering consultancy
(Business Services) ......................... 161,250 2,449,041
BT INDUSTRIES
Manufacturer of forklifts
(Capital Goods) ............................. 268,694 5,727,557
BURE INVESTMENT AKTIEBOLAGET
Investment company
(Financial Services) ........................ 287,527 3,505,025
FINNVEDEN (SERIES B)
Industrial conglomerate
(Manufacturing) ............................. 392,510 8,628,317
IRO
Manufacturer of textile
machinery (Capital Goods) ................... 130,120 1,785,553
KALMAR INDUSTRIES
Manufacturer of forklifts and
special lift trucks (Capital Goods) ......... 235,700 4,113,603
KALMAR INDUSTRIES (RIGHTS)*
Manufacturer of forklifts and
special lift trucks (Capital Goods) ......... 235,700 207,250
MUNSKJO
Producer of specialty paper
(Paper and Printing) ........................ 387,800 3,771,569
PLM
Manufacturer of food packaging
(Manufacturing) ............................. 443,130 7,025,376
-----------
37,213,291
-----------
SWITZERLAND 2.90%
FOTOLABO CLUB
Film processor (Retailing) .................. 13,314 3,221,091
HERO
Producer and exporter of
food and beverages (Consumer
Goods and Services) ......................... 7,340 3,864,945
KARDEX
Manufacturer and distributor
of industrial storage and
retrieval systems (Industrial
Goods and Services) ......................... 2,022 535,948
PRODEGA++
Food retailer (Retailing) ................... 12,353 6,460,636
SELECTA GROUP*
Owner and operator of food
and beverage vending machines
(Consumer Goods and Services) ............... 47,255 6,590,515
SIG SCHWEIZERISCHE INDUSTRIE-GESELLSCHAFT*
Industrial conglomerate
(Manufacturing) ............................. 4,293 5,681,844
TAG HEUER (ADRS)*
Designer and producer of
sports watches (Retailing) .................. 36,870 4,197,673
-----------
30,552,652
-----------
TAIWAN 0.20%
HOTUNG INVESTMENT HOLDINGS*
Investor in unlisted technology-
related companies
(Financial Services) ........................ 1,922,000 456,475
TAIWAN AMERICAN FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) ................... 104,000 1,646,320
-----------
2,102,795
-----------
THAILAND 0.10%
HANA MICROELECTRONICS
Circuit board manufacturer
(Electronics) ............................... 288,000 493,714
HANA MICROELECTRONICS (RFD LINE)
Circuit board manufacturer
(Electronics) ............................... 288,000 522,336
-----------
1,016,050
-----------
UNITED KINGDOM 18.15%
ABACUS POLAR
Distributor of electronic
components (Electrical
Distribution) ............................... 1,167,500 3,716,567
AEA TECHNOLOGY
Provider of engineering and
research and development services
(Industrial Goods and Services) ............. 380,000 2,966,887
ALLIED LEISURE
Bowling alley operator
(Leisure and Hotels) ........................ 4,525,000 2,653,494
ASHTEAD GROUP
Rentor of equipment for
the construction industry
(Construction and Property) ................. 2,582,500 15,035,802
BRITISH POLYTHENE INDUSTRIES
Manufacturer and converter
of polythene (Manufacturing) ................ 270,000 2,103,527
- -------------------
See footnotes on page 48.
- -----
42
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED KINGDOM (CONTINUED)
BTG
Technology transfer company
assisting in the commercialization
of technological innovations
(Technology) ................................ 258,000 $ 2,943,732
CAPITAL RADIO
Commercial radio station
(Media) ..................................... 1,050,200 8,269,921
CHIROSCIENCE GROUP
Pharmaceutical company
specializing in pharmaceuticals
for cancer, pain, and
inflammatory disorders
(Drugs and Health Care) ..................... 185,000 798,142
CLINTON CARDS
Retailer of greeting cards
(Retailing) ................................. 2,650,000 4,883,937
COBHAM
High-integrity engineering
(Manufacturing) ............................. 470,000 6,618,614
CRT GROUP
Provider of training and
recruitment services; publisher
of multimedia products
(Support Services) .......................... 1,474,400 7,954,313
DAVID BROWN GROUP
Diversified engineering company;
manufacturer of transmission
equipment and pumps
(Manufacturing) ............................. 1,781,232 6,177,636
DAWSON GROUP
Rentor of commercial vehicles
(Transportation) ............................ 1,389,600 4,819,385
DOMNICK HUNTER GROUP
Manufacturer of filtration,
purification, and separation
products (Manufacturing) .................... 860,700 4,881,372
DRUCK HOLDINGS
Worldwide engineering group
(Industrial Goods and Services) ............. 421,200 1,975,959
ELECTRONICS BOUTIQUE*
Electronic games retailer
(Retailing) ................................. 7,250,000 5,041,010
F.I. GROUP
Designer and builder of
software applications
(Computer Software) ......................... 617,200 6,938,729
FAIREY GROUP
Electrical and electronic
engineering (Electronics) ................... 738,600 7,610,547
GAMES WORKSHOP GROUP
Manufacturer and retailer
of specialty games (Retailing) .............. 542,600 6,159,147
GWR GROUP
Local commercial radio
station operator (Media) .................... 1,733,700 5,184,939
HAMLEY'S
Toy store (Retailing) ....................... 359,700 2,064,108
IBC GROUP
Business communications
(Business Services) ......................... 1,180,000 8,056,401
ISA INTERNATIONAL
Distributor of computer
consumables (Business Services) ............. 1,902,589 4,000,555
NATIONAL EXPRESS GROUP
Long distance coach services
operating in the UK and
Europe (Transportation) ..................... 700,000 6,514,987
PARITY
Provider of software engineering
and consulting services
(Computer Software) ......................... 1,229,100 11,820,357
PEPTIDE THERAPEUTICS
Biopharmaceuticals
development company
(Drugs and Health Care) ..................... 135,000 696,652
PIZZA EXPRESS
Operator of restaurant chain
(Restaurants) ............................... 917,300 11,434,464
POLYPIPE
Manufacturer of plastic piping
and molded plastic products
(Building Materials) ........................ 2,439,600 8,869,718
SAVE GROUP
Gas station chain (Retailing) ............... 455,633 847,363
SHIRE PHARMACEUTICALS*
Biotechnology company
specializing in metabolic bone
and Alzheimer's diseases
(Drugs and Health Care) ..................... 247,500 1,078,152
STOVES
Manufacturer of ovens
(Manufacturing) ............................. 477,500 2,100,072
TILBURY DOUGLAS
Building contractor
(Construction and Property) ................. 736,300 7,833,575
- -------------------
See footnotes on page 48.
-----
43
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED KINGDOM (CONTINUED)
TRIFAST
Manufacturer and distributor
of fasteners for the
electronics industry
(Electrical Distribution) ................... 417,000 $ 3,678,459
TRINITY INTERNATIONAL HOLDINGS
Publisher of regional
newspapers in the UK, US,
and Canada (Media) .......................... 1,257,600 9,955,792
UNIONAMERICA HOLDINGS (ADRS)
Provider of property and
casualty reinsurance
(Financial Services) ........................ 150,000 2,981,250
VANGUARD MEDICA GROUP
Emerging biopharmaceutical
company planning to develop
and commercialize new drugs
(Drugs and Health Care) ..................... 145,000 1,102,949
WELLINGTON HOLDINGS
Producer of sealing systems
and rubber compounds
(Manufacturing) ............................. 440,000 1,245,865
-----------
191,014,379
-----------
UNITED STATES 42.71%
ACCUSTAFF*
Provider of temporary
personnel services
(Business Services) ......................... 465,200 13,287,275
ACUSON*
Designer, producer, and
retailer of medical diagnostic
ultrasound imaging systems
(Medical Products and
Technology) ................................. 125,000 2,343,750
ACXIOM*
Provider of data processing
services (Computer Software) ................ 200,000 3,287,500
ADVO*
Direct mail advertising services
(Business Services) ......................... 195,600 4,388,775
AERIAL COMMUNICATIONS*
Provider of cellular telephone
services (Telecommunications) ............... 300,000 2,568,750
AFFILIATED COMPUTER SERVICES*
Provider of information
technology services and
electronic funds transfer
processing (Business Services) .............. 113,800 2,859,225
ALLIED WASTE INDUSTRIES
Provider of integrated waste
disposal services (Industrial
Goods and Services) ......................... 400,000 8,125,000
ALTERNATIVE RESOURCES*
Provider of technical
human resource services
(Business Services) ......................... 50,000 1,218,750
AMERICAN CAPITAL STRATEGIES*
Provider of commercial financing
(Financial Services) ........................ 113,200 2,016,375
AMERICAN HOMEPATIENT*
Provider of home health
care services (Drugs and
Health Care) ................................ 220,000 5,637,500
AMERICAN HOMESTAR*
Retailer and producer of
manufactured homes
(Manufacturing) ............................. 300,000 6,825,000
AMERICAN MANAGEMENT SYSTEMS*
Provider of information
technology consulting services
(Business Services) ......................... 50,000 1,075,000
AMERISOURCE HEALTH (CLASS A)*
Wholesale distributor of
pharmaceuticals (Drugs and
Health Care) ................................ 151,600 9,001,250
ANALYSTS INTERNATIONAL
Provider of diversified
computer software services
(Business Services) ......................... 50,000 2,250,000
ANCHOR GAMING*
Installer and operator
of gaming machines
(Leisure and Hotels) ........................ 3,700 290,450
ANTEC*
Developer and supplier of fiber
optic transmission, construction,
and maintenance equipment
for the cable television industry
(Telecommunications) ........................ 149,100 2,357,644
ARCH COMMUNICATIONS GROUP*
Provider of nationwide paging
services (Telecommunications) ............... 273,600 2,120,400
ASYST TECHNOLOGIES*
Miniature clean-room
environment devices for
the manufacture of silicon
wafers (Technology) ......................... 250,000 7,273,438
- -------------------
See footnotes on page 48.
- -----
44
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
AVANT!*
Developer and marketer
of software products that
assist design engineers
(Computer Software) ......................... 87,100 $ 2,275,488
BA MERCHANT SERVICES (CLASS A)*
Provider of payment processing
services (Business Services) ................ 250,400 3,740,350
BACOU USA*
Designer and manufacturer of
personal protective gear
(Industrial Goods and Services) ............. 205,000 3,549,063
BDM INTERNATIONAL*
Information technology company,
providing systems and services
to public sector and commercial
customers (Business Services) ............... 175,000 3,860,938
BERG ELECTRONICS*
Manufacturer of electronic
connectors (Electronics) .................... 175,200 4,095,300
BISYS GROUP*
Provider of data processing services
for banks (Business Services) ............... 150,400 4,671,800
BLACK BOX*
Provider of communications
and networking solutions
(Electrical Distribution) ................... 100,000 4,075,000
BUDGET GROUP*
Owner and operator of
Budget Rent-a-Car franchises
(Consumer Goods and Services) ............... 350,000 12,250,000
BURR-BROWN*
Manufacturer of microelectric
data devices for business
end-users (Technology) ...................... 110,000 3,306,875
CABOT OIL & GAS
Explorer, developer, and producer
of oil and gas (Technology) ................. 36,400 873,600
CALENERGY*
Developer of geothermal energy
power (Electric Utilities) .................. 207,600 7,110,300
CALPINE*
Developer of power generation
facilities (Electric Utilities) ............. 500,000 7,937,500
CANANDAIGUA BRANDS (CLASS A)*
Wine, imported beer, and
distilled spirits (Consumer
Goods and Services) ......................... 150,000 7,471,875
CARRIAGE SERVICES*
Provider of funeral services
and products (Consumer Goods
and Services) ............................... 139,800 2,341,650
CELADON GROUP*
Provider of transportation and
international freight services
(Transportation) ............................ 300,000 4,331,250
CERIDIAN*
Provider of data processing
services (Business Services) ................ 354,700 13,855,469
CHART INDUSTRIES
Designer and producer of
standard and custom-built
industrial process equipment
(Industrial Goods and Services) ............. 46,000 989,000
CMP MEDIA (CLASS A)*
Magazine and newspaper
publisher (Media) ........................... 54,700 1,008,531
COGNEX*
Manufacturer of machine vision
systems (Electronics) ....................... 266,700 7,092,553
COINMACH LAUNDRY*
Provider of coin-operated
laundry equipment and services
(Consumer Goods and Services) ............... 13,100 275,100
COLLABORATIVE CLINICAL RESEARCH*
Manager of a clinical research
network (Drugs and Health Care) ............. 150,000 900,000
COMPDENT*
Provider of managed care
dental services (Medical
Products and Technology) .................... 300,000 6,215,625
CONTINENTAL NATURAL GAS*
Independent owner and
operator of natural gas pipelines
(Resources) ................................. 210,000 2,401,875
CORPORATE EXPRESS*
Office products supplier
(Retailing) ................................. 518,900 7,621,344
COX RADIO (CLASS A)*
Operator of radio stations
(Media) ..................................... 285,000 9,707,813
CREDENCE SYSTEMS*
Manufacturer of automated
semiconductor test equipment
(Technology) ................................ 158,800 4,674,675
DOMINICK'S SUPERMARKETS*
Supermarket operator (Retailing) ............ 150,000 5,475,000
- -------------------
See footnotes on page 48.
-----
45
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
EAGLE GEOPHYSICAL*
Company specializing in
seismic data collection
(Energy Services) ........................... 100,000 $ 1,762,500
EQUITY INTERNATIONAL*
Funeral services provider
(Consumer Goods and Services) ............... 158,500 3,229,437
FACTSET RESEARCH SYSTEMS*++
Provider of on-line database
services to the financial
community (Business Services) ............... 500,000 13,343,750
FLANDERS*
Designer, manufacturer, and
marketer of a range of air
filtration products (Consumer
Goods and Services) ......................... 194,500 1,543,844
FRONTIER INSURANCE GROUP
Provider of specialty insurance
products (Financial Services) ............... 115,800 3,901,012
GENERAL SEMICONDUCTOR*
Designer and manufacturer
of power semiconductors
(Technology) ................................ 304,700 3,465,962
GLENAYRE TECHNOLOGIES*
Manufacturer of paging
infrastructure equipment
(Telecommunications) ........................ 211,700 2,738,869
GTECH HOLDINGS*
Operator of state and local
lottery systems (Leisure
and Hotels) ................................. 100,000 3,225,000
GULF SOUTH MEDICAL SUPPLY*
Distributor of medical
supplies (Medical Products
and Technology) ............................. 137,300 4,496,575
HA-LO INDUSTRIES*
Distributor of specialty
advertising products (Advertising) .......... 115,000 3,220,000
IMNET SYSTEMS*
Developer, marketer, and
installer of electronic
information and document
management systems
(Computer Software) ......................... 75,800 1,383,350
IMPERIAL CREDIT*
Mortgage banking operations
(Financial Services) ........................ 101,300 2,538,831
INSIGNIA FINANCIAL*
Real estate management
services (Financial Services) ............... 215,700 4,664,512
INSO*
Marketer and developer of
textual information software
(Computer Software) ......................... 81,600 974,100
INTEGRATED DEVICE TECHNOLOGY*
Designer, manufacturer, and
marketer of integrated circuits
and modules (Technology) .................... 75,700 872,916
INTEGRATED HEALTH SERVICES
Operator of geriatric medical
facilities (Drugs and Health Care) .......... 70,000 2,222,500
INTERSTATE HOTELS*
Hotel management company
(Leisure and Hotels) ........................ 81,300 2,499,975
IVEX PACKAGING*
Manufacturer of specialty
packages (Consumer Goods
and Services) ............................... 151,700 3,204,663
JACOR COMMUNICATIONS*
Radio broadcasting (Media) .................. 147,400 6,153,950
JOURNAL REGISTER*
Newspaper publisher (Media) ................. 200,000 3,487,500
JP FOODSERVICE*
Distributor to food service
industry (Business Services) ................ 127,200 4,062,450
KEMET*
Manufacturer and supplier
of ceramic capacitors
(Technology) ................................ 311,700 6,818,438
KENDLE INTERNATIONAL*
Provider of a variety of
clinical research services
(Drugs and Health Care) ..................... 100,000 1,506,250
LATTICE SEMICONDUCTOR*
Designer and developer of
programmable logic devices
(Technology) ................................ 104,800 5,230,175
MAPICS
Supplier of applications software, including
solutions for business planning,
production, logistics, and asset management needs
(Computer Software) ......................... 722,500 8,173,281
- -------------------
See footnotes on page 48.
- -----
46
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
MARCAM SOLUTIONS*
Supplier of business planning
applications and services
(Computer Software) ......................... 185,000 $ 1,884,687
MEDALLION FINANCIAL
Provider of loan financing
for the purchase of taxicab
medallions and related assets
(Financial Services) ........................ 300,000 6,281,250
METALS USA*
Metals processor (Metals) ................... 60,000 885,000
NCS HEALTHCARE (CLASS A)*
Health care facility and
pharmacy services (Drugs and
Health Care) ................................ 320,000 7,460,000
OCULAR SCIENCES*
Manufacturer and marketer
of soft contact lenses (Medical
Products and Technology) .................... 150,000 3,281,250
OCWEN FINANCIAL*
Specializes in savings and loans
(Financial Services) ........................ 57,400 3,153,412
OM GROUP
Producer of specialty chemicals
(Chemicals) ................................. 200,000 7,550,000
OMNICARE
Provider of pharmacy services
to long-term care institutions
(Drugs and Health Care) ..................... 116,700 3,245,719
PERSONNEL GROUP OF AMERICA*
Personnel staffing services
(Business Services) ......................... 111,000 3,850,312
PETERSEN COMPANIES*
Special-interest magazine
publisher (Media) ........................... 140,000 2,765,000
PHYCOR*
Operator of multi-specialty
medical clinics (Drugs and
Health Care) ................................ 82,300 1,895,472
PHYSICIAN SALES & SERVICES*
Distributor of medical
supplies, equipment, and
pharmaceuticals
(Drugs and Health Care) ..................... 71,300 1,729,025
PIERCE LEAHY*
Archive records management
services (Business Services) ................ 105,500 2,954,000
PMC-SIERRA*
Provider of high-speed
networking circuits (Technology) ............ 190,300 5,007,269
PMT SERVICES*
Marketer of electronic credit
card authorization and payment
services (Business Services) ................ 227,700 3,636,084
POLYMER GROUP*
Manufacturer and marketer
of polyolefin products
(Manufacturing) ............................. 100,000 968,750
PRIDE INTERNATIONAL*
Provider of oil and gas well
services (Industrial Goods
and Services) ............................... 68,300 2,253,900
PRISON REALTY TRUST
Real estate investment trust
investing in prisons
(Construction and Property) ................. 129,000 4,450,500
PSW TECHNOLOGIES*
Provider of high-value
solutions to technology vendors
and business end-users
(Business Services) ......................... 160,000 2,470,000
QUORUM HEALTH GROUP*
Owner and operator of
acute-care hospitals
(Drugs and Health Care) ..................... 64,100 1,552,422
RDO EQUIPMENT (CLASS A)*
Owner and operator of
John Deere stores (Retailing) ............... 250,000 5,421,875
ROSLYN BANCORP
Savings bank (Financial Services) ........... 97,700 2,094,444
SANTA FE ENERGY RESOURCES*
Explorer, producer, and
developer of oil and gas
(Resources) ................................. 252,200 3,294,362
SIMON TRANSPORTATION SERVICES*++
Provider of temperature-
controlled transportation
services (Transportation) ................... 270,000 6,108,750
SITEL*
Telemarketer
(Business Services) ......................... 200,000 1,775,000
SOLA INTERNATIONAL*
Designer and manufacturer
of optical supplies (Consumer
Goods and Services) ......................... 73,000 2,491,125
- -------------------
See footnotes on page 48.
-----
47
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
SOURCE SERVICES*
Specialty staffing services
(Business Services) ......................... 200,000 $ 5,737,500
STANFORD TELECOMMUNICATIONS*
Designer, manufacturer,
and marketer of digital
telecommunications
products and systems
(Telecommunications) ........................ 42,700 1,032,806
STEINWAY MUSICAL INSTRUMENTS*
Manufacturer of musical
equipment (Consumer
Goods and Services) ......................... 198,000 4,702,500
SYNOPSYS*
Supplier of integrated
circuit design software
(Computer Software) ......................... 124,100 4,824,387
TOTAL RENAL CARE HOLDINGS*
Provider of dialysis services
(Drugs and Health Care) ..................... 270,999 8,350,157
UNITED VIDEO SATELLITE GROUP
(CLASS A)*
Satellite-delivered
program services (Media) .................... 12,200 327,875
UNIVERSAL OUTDOOR HOLDINGS*
Outdoor advertising, such as
billboards (Advertising) .................... 196,400 8,273,350
VALLEY NATIONAL GASES*
Packager and distributor of
gases (Chemicals) ........................... 350,000 3,762,500
VISHAY INTERTECHNOLOGY*
Developer and manufacturer
of electronic resistive
systems (Electronics) ....................... 178,300 4,268,056
WATERS*
Manufacturer of liquid
chromatography instruments
(Medical Products
and Technology) ............................. 107,900 4,747,600
WATSON PHARMACEUTICALS*
Manufacturer of off-patent
medications (Medical Products
and Technology) ............................. 129,200 4,102,100
WISCONSIN CENTRAL TRANSPORTATION*
Operator of regional railroad
systems (Transportation) .................... 135,600 4,195,125
YOUTH SERVICES*
Operator of residential and
community-based programs
for at-risk youths
(Support Services) .......................... 215,700 3,060,244
--------------
449,597,704
--------------
TOTAL COMMON STOCKS
(Cost $968,154,390) ............................ 1,028,429,762
PREFERRED STOCKS 0.66%
(Cost $7,870,811)
GERMANY 0.66%
GERRY WEBER INTERNATIONAL*
Designer and manufacturer
of ladies' apparel
(Manufacturing) ............................. 274,911 6,920,703
-----------
TOTAL INVESTMENTS 98.36%
(Cost $976,025,200) ............................ 1,035,350,465
OTHER ASSETS
LESS LIABILITIES 1.64% ........................ 17,271,229
--------------
NET ASSETS 100.00% ............................ $1,052,621,694
==============
- ------------------
* Non-income producing security.
+ Rule 144A security.
++ Affiliated issuers (a Series' holdings representing 5% or more of the
outstanding voting securities).
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
- -----
48
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
COMMON STOCKS 96.88%
AUSTRALIA 0.59%
COCHLEAR
Developer and marketer
of hearing aids (Medical
Products and Technology) .................... 1,650,000 $ 5,093,979
-----------
BERMUDA 1.26%
GEMSTAR INTERNATIONAL*
Developer and marketer of
television and video
recording products (Media) .................. 500,000 10,968,750
-----------
BRAZIL 0.44%
TELECOMUNICACOESBRASILEIRAS
"TELEBRAS" (ADRS)
Provider of telecommunications
services (Telecommunications) ............... 38,000 3,847,500
-----------
FINLAND 0.77%
NOKIA
Manufacturer and developer
of telecommunications
systems and equipment
(Telecommunications) ........................ 77,000 6,709,334
-----------
FRANCE 1.73%
ALCATEL ALSTHOM
Developer of equipment
and systems for public
telecommunications
(Telecommunications) ........................ 45,000 5,411,710
ALTRAN TECHNOLOGIES
Computer services provider
(Computer and Business Services) ........... 9,500 2,527,884
ATOS*
Computer services provider
and systems integrator
(Computer and Business
Services) ................................... 42,816 4,793,954
UNILOG
Computer consultants
(Computer and
Business Services) .......................... 17,241 2,308,750
-----------
15,042,298
-----------
GERMANY 0.65%
FRESENIUS
Dialysis equipment and services
(Medical Products and Technology) .............. 33,000 5,652,941
-----------
HONG KONG 0.44%
ELEC & ELTEK INTERNATIONAL HOLDINGS
Manufacturer of printed
circuit boards (Electronics) ................ 10,502,500 3,872,202
-----------
HUNGARY 0.42%
RICHTER GEDEON (GDRS)
Manufacturer of pharmaceuticals
and cosmetics (Medical Products
and Technology) ............................. 39,000 3,627,000
-----------
INDIA 0.15%
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
telecommunications services
(Telecommunications) ........................ 102,500 1,345,313
-----------
ISRAEL 1.74%
ECI TELECOMMUNICATIONS
Provider of digital
telecommunications and
data transmissions systems
(Networking/Communications
Infrastructure) ............................. 550,000 15,159,375
-----------
ITALY 0.96%
TELECOM ITALIA
Provider of telecommunications
services (Telecommunications) ............... 1,333,333 8,338,735
-----------
JAPAN 8.19%
ADVANTEST
Producer of measuring
instruments and semiconductor
testing devices (Electronics
Capital Equipment) .......................... 74,000 6,122,059
AVAL DATA
Manufacturer of computer
peripherals (Computer
Hardware/Peripherals) ....................... 200,000 1,496,633
CANON
Manufacturer of printers
and photocopiers (Computer
Hardware/Peripherals) ....................... 316,000 7,672,071
CSK
Information services
company (Computer and
Business Services) .......................... 255,000 8,014,467
GLORY KOGYO
Manufacturer and major
exporter of currency-handling
machines (Miscellaneous) .................... 122,000 1,998,337
HIROSE ELECTRONICS
Manufacturer of specialized
connectors (Electronics) .................... 81,100 5,293,382
HITACHI
Manufacturer of diversified
electronics (Electronics) ................... 600,000 4,614,617
- ---------------
See footnotes on page 59.
- -----
54
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
JAPAN (CONTINUED)
MIMASU SEMICONDUCTOR
Wafer inspection devices
(Electronics Capital Equipment) ............. 180,000 $ 3,367,423
MURATA MANUFACTURING
Manufacturer of capacitors
(Electronics) ............................... 167,000 6,776,087
NEC
Manufacturer and marketer
of computers and
telecommunications devices
(Networking/Communications
Infrastructure) ............................. 413,000 4,532,801
ROHM
Producer of custom
linear integrated circuits
(Semiconductors) ............................ 81,000 8,014,467
SECOM
Security services pioneer
(Computer and
Business Services) .......................... 109,000 7,050,969
TDK
Magnetic tapes and heads
for disk drives (Computer
Hardware/Peripherals) ....................... 75,000 6,223,497
-----------
71,176,810
-----------
LUXEMBOURG 1.45%
MILLICOM INTERNATIONAL CELLULAR*
Cellular services operator
(Telecommunications) ........................ 300,000 12,581,250
-----------
NETHERLANDS 3.17%
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital Equipment) ............. 110,000 8,085,000
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital Equipment) ............. 16,000 1,157,814
CMG
Information technology
consulting (Computer and
Business Services) .......................... 376,540 8,737,604
PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) ............................... 123,300 9,618,476
-----------
27,598,894
-----------
SINGAPORE 0.88%
VENTURE MANUFACTURING
Contract manufacturer
for the electronics industry
(Electronics) ............................... 2,224,000 7,622,723
-----------
SOUTH KOREA 0.61%
CHUNG HO COMPUTER
Manufacturer of ATMs and
cash dispensers (Computer
Hardware/Peripherals) ....................... 35,200 572,684
SAMSUNG ELECTRONICS (GDRS)
(1/2 NON-VOTING)*+
Manufacturer of consumer
electronics and semiconductors
(Semiconductors) ............................ 253,130 2,578,129
SK TELECOMMUNICATIONS (ADRS)
Provider of mobile
telecommunications and
paging services
(Telecommunications) ........................ 386,250 2,124,375
-----------
5,275,188
-----------
SPAIN 0.30%
TELEFONICA DE ESPANA
Provider of telecommunications
services (Telecommunications) ............... 96,000 2,610,232
-----------
SWEDEN 1.23%
L.M. ERICSSON TELEFON (SERIES B)
Manufacturer of
telecommunications
equipment (Networking/
Communications Infrastructure) .............. 137,000 6,023,181
PHARMACIA & UPJOHN
Global pharmaceutical and
biotechnology company
(Medical Products and
Technology) ................................. 147,800 4,696,283
-----------
10,719,464
-----------
TAIWAN 4.22%
ACCTON TECHNOLOGY (GDRS)
Distributor of electronic
components (Distribution) ................... 465,750 1,723,275
- ---------------
See footnotes on page 59.
-----
55
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
TAIWAN (CONTINUED)
SILICONWARE PRECISION INDUSTRIES (GDRS)*
Integrated circuit packaging
(Electronics Capital Equipment) ............. 308,000 $ 2,964,500
SYNNEX TECHNOLOGY INTERNATIONAL (GDRS)*
Manufacturer of PCs and
peripherals (Distribution) .................. 178,000 3,106,100
TAIWAN SEMICONDUCTOR
MANUFACTURING (ADRS)*
Manufacturer of integrated
circuits (Semiconductors) ................... 1,007,500 19,941,875
UNITED MICRO ELECTRONICS*
Manufacturer of integrated
circuits (Semiconductors) ................... 2,492,026 4,670,033
UNITED TELECOMMUNICATIONS+
Provider of telecommunications
services (Telecommunications) ............... 7,600 1,998,800
YAGEO (GDRS)*
Manufacturer of passive
components (Electronics) .................... 208,020 2,185,292
YAGEO (GDRS)*+
Manufacturer of passive
components (Electronics) .................... 5,980 62,821
-----------
36,652,696
-----------
UNITED KINGDOM 11.16%
ABACUS POLAR
Distributor of electronic
components (Distribution) ................... 1,240,000 3,947,360
ACORN COMPUTER*
Supplier to the educational
computer market (Computer
Hardware/Peripherals) ....................... 695,000 1,630,213
ADMIRAL
Computer software and
services (Computer and
Business Services) .......................... 950,000 9,311,313
ANITE GROUP*
Supplier of data communications
and software products
(Networking/Communications
Infrastructure) ............................. 1,950,000 1,404,865
ASTEC
Designer and manufacturer
of power conversion products
and electronic components
(Computer Hardware/
Peripherals) ................................ 3,650,000 7,766,548
AZLAN
Networking equipment
distributor (Distribution) .................. 857,900 934,290
AZLAN (RIGHTS)*
Networking equipment
distributor (Distribution) .................. 1,715,800 689,937
BTG
Technology transfer
company assisting in the
commercialization of
technological inventions
(Computer and
Business Services) .......................... 585,000 6,674,741
CODA GROUP
Developer of financial
accounting software
(Computer Software) ......................... 370,000 1,087,953
COLT TELECOMMUNICATIONS*
Telecommunications
services provider
(Telecommunications) ........................ 598,800 5,131,672
CRT GROUP
Provider of training and
recruitment services;
publisher of multimedia
products (Computer and
Business Services) .......................... 900,000 4,855,454
EIDOS*
Developer of entertainment
software (Computer Software) ................ 242,000 2,838,212
FILTRONIC COMTEK
Designer and manufacturer
of sophisticated devices for
mobile telecommunications
systems (Networking/
Communications Infrastructure) .............. 175,000 1,385,388
FREEPAGES GROUP
Provider of classified
information by telephone
and the Internet
(Telecommunications) ........................ 4,000,000 2,412,648
GENERAL ELECTRIC
Supplier of diversified
electronics (Electronics) ................... 1,250,000 7,947,916
- ---------------
See footnotes on page 59.
- -----
56
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
UNITED KINGDOM (CONTINUED)
ILION GROUP++
Networking equipment
distributor (Distribution) .................. 1,616,914 $ 7,368,639
LINX PRINTING TECHNOLOGY++
Manufacturer of specialized
printers (Miscellaneous) .................... 570,000 1,456,385
LOGICA
Supplier of computer
services (Computer and
Business Services) .......................... 611,542 8,657,938
MISYS
Provider of computer services
and software and hardware
solutions (Computer Software) ............... 231,428 5,825,884
PREMIER FARNELL
Distributor of electronic
components (Distribution) ................... 350,000 2,720,931
PSION
Manufacturer of hand-held
computers (Computer
Hardware/Peripherals) ....................... 490,500 3,677,592
SHIRE PHARMACEUTICALS*
Biotechnology company
specializing in metabolic bone
and Alzheimer's diseases
(Medical Products and
Technology) ................................. 611,551 2,664,020
VODAFONE
Cellular services operator
(Telecommunications) ........................ 1,200,000 6,589,545
-----------
96,979,444
-----------
UNITED STATES 56.52%
3COM*
Supplier of adapter cards,
hubs, and routers for local
area computer networks
(Networking/Communications
Infrastructure) ............................. 200,000 8,293,750
3DO*
Developer of video game
software and game platforms
(Computer Software) ......................... 750,000 2,578,125
ACTIVISION*
Developer of entertainment
software (Computer Software) ................ 300,000 4,350,000
ADAPTEC*
Manufacturer of computer
input-output systems
(Electronics) ............................... 225,000 10,919,531
ADFLEX SOLUTIONS*
Flexible circuit boards
(Electronics) ............................... 175,100 3,917,863
AMERICAN POWER CONVERSION*
Manufacturer of constant-power
supply products (Computer
Hardware/Peripherals) ....................... 500,000 13,531,250
APPLIED MATERIALS*
Manufacturer of semiconductor
fabrication equipment
(Electronics Capital Equipment) ............. 230,000 7,669,063
ASPECT TELECOMMUNICATIONS*
Developer and manufacturer of
automated call distribution
equipment (Networking/
Communications Infrastructure) .............. 200,000 4,750,000
BMC SOFTWARE*
Developer of mainframe
and Unix utility software
(Computer Software) ......................... 200,000 12,050,000
CADENCE DESIGN SYSTEM*
Electronic design automation
software (Computer Software) ................ 200,000 10,650,000
CIDCO*
Manufacturer of telephone
caller identification systems
(Networking/Communications
Infrastructure) ............................. 200,000 3,737,500
CISCO SYSTEMS*
Manufacturer of computer
network routers and switches
(Networking/Communications
infrastructure) ............................. 150,000 12,304,688
CMP MEDIA (CLASS A)*
Publisher of technology
industry trade magazines (Media) ............ 700,000 12,906,250
COGNEX*
Manufacturer of machine
vision systems (Electronics) ................ 350,000 9,307,813
CREATIVE TECHNOLOGY*
Producer of PC audio
products (Computer
Hardware/Peripherals) ....................... 800,000 20,350,000
- ---------------
See footnotes on page 59.
-----
57
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
CREDENCE SYSTEMS*
Manufacturer of automated
semiconductor test equipment
(Electronics Capital Equipment) ............. 350,000 $10,303,125
ELECTRO SCIENTIFIC INDUSTRIES*
Manufacturer of memory circuit
repair systems (Electronics
Capital Equipment) .......................... 200,000 9,650,000
ELECTRONICS FOR IMAGING*
Peripherals for color
copiers (Electronics) ....................... 400,000 18,675,000
EMC*
Manufacturer of enterprise
storage devices (Computer
Hardware/Peripherals) ....................... 350,000 19,600,000
ETEC SYSTEMS*
Photomask manufacturing
systems (Electronics Capital
Equipment) .................................. 200,000 8,962,500
FLEXTRONICS INTERNATIONAL*
Contract manufacturer of
electronic components
(Electronics) ............................... 200,000 7,600,000
GARTNER GROUP (CLASS A)*
Provider of information
technology consulting and
training services (Computer
and Business Services) ...................... 300,000 8,456,250
GASONICS INTERNATIONAL*
Developer and supplier
of photoresist removal
equipment (Electronics) ..................... 485,000 7,547,812
GENRAD*
Manufacturer and seller of
computer-controlled test and
development equipment
(Electronics) ............................... 100,000 2,950,000
HADCO*
Manufacturer of complex
printed circuit boards
(Electronics) ............................... 100,000 5,537,500
IN FOCUS SYSTEMS*
Manufacturer of portable
projection systems (Computer
Hardware/Peripherals) ....................... 300,000 9,862,500
INTERNATIONAL RECTIFIER*
Designer and manufacturer of
power semiconductors
(Semiconductors) ............................ 300,000 4,106,250
UNITED STATES (CONTINUED)
KLA-TENCOR*
Manufacturer of wafer
and metrology equipment
(Electronics Capital
Equipment) .................................. 300,000 13,153,125
KULICKE & SOFFA INDUSTRIES*
Manufacturer of semiconductor
packaging equipment
(Electronics) ............................... 700,000 17,937,500
LATTICE SEMICONDUCTOR*
Designer and manufacturer of
programmable logic devices
(Semiconductors) ............................ 200,000 9,981,250
LEXMARK INTERNATIONAL GROUP
(CLASS A)*
Manufacturer of laser and
inkjet printers and cartridges
(Computer Hardware/
Peripherals) ................................ 475,000 14,517,187
MAXIM INTEGRATED PRODUCTS*
Manufacturer of linear and
mixed-signal integrated
circuits (Semiconductors) ................... 250,000 16,554,687
MICROCHIP TECHNOLOGY*
Supplier of field programmable
microcontrollers
(Semiconductors) ............................ 364,600 14,470,063
NETWORK APPLIANCES*
Designer, manufacturer,
and marketer of network
data storage devices
(Networking/Communications
Infrastructure) ............................. 80,000 4,000,000
NETWORK GENERAL*
Local area network
management software
(Computer Software) ......................... 495,000 9,992,812
NOVELLUS SYSTEMS*
Designer and manufacturer of
chemical vapor deposition
equipment (Electronics
Capital Equipment) .......................... 400,000 17,775,000
PARAMETRIC TECHNOLOGY*
Developer of mechanical
design software
(Computer Software) ......................... 400,000 17,625,000
PMC-SIERRA*
Provider of high-speed
networking circuits
(Semiconductors) ............................ 300,000 7,893,750
- ---------------
See footnotes on page 59.
- -----
58
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS October 31, 1997
SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
READ-RITE*
Manufacturer of recording heads
for disk drives (Computer
Hardware/Peripherals) ....................... 600,000 $11,943,750
STORAGE TECHNOLOGY*
Designer and manufacturer of
tape- and disk-based
data storage equipment
(Computer Hardware/Peripherals) ............. 350,000 20,540,625
STRUCTURAL DYNAMICS RESEARCH*
Developer of mechanical design
software (Computer Software) ................ 650,000 12,390,625
SYNOPSYS*
Developer of integrated circuit
design software (Computer
Software) ................................... 300,000 11,662,500
TELEGROUP
Alternative provider of
international telecommunications
services (Telecommunications) ............... 197,200 2,156,875
TERADYNE*
Manufacturer of semiconductor
test equipment (Electronics
Capital Equipment) .......................... 400,000 14,975,000
VEECO INSTRUMENTS++
Ion beam etching and surface
measurement systems
(Electronics Capital Equipment) ............. 200,000 7,925,000
VESTCOM INTERNATIONAL
Provider of computer output and
document management
services (Computer and
Business Services) .......................... 300,000 5,418,750
VIEWLOGIC SYSTEMS*
Developer of electronic
design automation software
(Computer Software) ......................... 400,000 9,750,000
-----------
491,230,269
-----------
TOTAL INVESTMENTS 96.88%
(Cost $742,710,990) ............................ 842,104,397
OTHER ASSETS
LESS LIABILITIES 3.12% ......................... 27,080,674
------------
NET ASSETS 100.00% ............................ $869,185,071
============
- ----------
* Non-income producing security.
+ Rule 144A security.
++ Affiliated issuers (a Series' holdings representing 5% or more of the
outstanding voting securities).
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
-----
59
<PAGE>
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES October 31, 1997
<TABLE>
<CAPTION>
EMERGING GLOBAL GLOBAL
MARKETS GROWTH SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND FUND
------------- ------------ --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Common stocks* .................. $ 90,160,296 $ 85,994,878 $ 185,548,282 $ 1,028,429,762 $ 842,104,397
Preferred stocks ................ -- -- -- 6,920,703 --
------------ ------------- ------------- --------------- -------------
Total investments .................. 90,160,296 85,994,878 185,548,282 1,035,350,465 842,104,397
Cash ............................... 1,554,950 14,791,110 7,390,541 21,883,789 35,847,573
Receivable for
securities sold ................... 1,341,635 4,481,690 4,886,287 3,815,689 2,102,550
Receivable for
Capital Stock sold ................ 720,842 1,308,258 533,256 4,933,899 4,243,109
Receivable for
dividends and interest ............ 325,097 4,852 324,080 2,742,496 456,477
Unrealized appreciation
on forward
currency contracts ................ 143,198 -- 198,152 737,580 10,386
Expenses prepaid
to shareholder
service agent ..................... 50,154 89,923 106,013 594,399 550,335
Other .............................. 8,360 8,716 11,860 30,322 16,419
------------ ------------- ------------- --------------- -------------
TOTAL ASSETS ....................... 94,304,532 106,679,427 198,998,471 1,070,088,639 885,331,246
------------ ------------- ------------- --------------- -------------
LIABILITIES:
Payable for
securities purchased .............. 404,935 1,519,648 5,159,626 11,319,025 11,539,519
Payable for Capital
Stock repurchased ................. 206,179 685,121 697,143 3,861,731 2,965,367
Unrealized depreciation
on forward
currency contracts ................ 12,292 5,095 77,181 162,883 604
Accrued expenses,
taxes, and other .................. 247,093 330,720 393,278 2,123,306 1,640,685
------------ ------------- ------------- --------------- -------------
TOTAL LIABILITIES .................. 870,499 2,540,584 6,327,228 17,466,945 16,146,175
------------ ------------- ------------- --------------- -------------
NET ASSETS ......................... $ 93,434,033 $ 104,138,843 $ 192,671,243 $ 1,052,621,694 $ 869,185,071
============ ============= ============= =============== =============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ......................... $ 2,572 $ 6,002 $ 11,847 $ 27,801 $ 38,526
Class B ......................... 367 3,966 2,131 16,468 3,600
Class D ......................... 2,368 4,302 7,093 24,624 15,805
Additional
paid-in capital ................... 79,537,136 107,971,639 155,546,926 955,660,047 639,534,986
Accumulated net
investment loss ................... (11,851) (1,128) (2,528) (9,902) (6,536)
Undistributed/accumulated
net realized gain
(loss) on investments ............. 4,297,539 (3,622,200) 7,209,733 36,840,429 130,196,451
Net unrealized
appreciation of
investments ....................... 10,288,435 2,039,703 33,877,264 81,741,299 107,030,541
Net unrealized
depreciation on
translation of
assets and liabilities
denominated in foreign
currencies and
forward currency
contracts ......................... (682,533) (2,263,441) (3,981,223) (21,679,072) (7,628,302)
------------ ------------- ------------- --------------- -------------
NET ASSETS ......................... $ 93,434,033 $ 104,138,843 $ 192,671,243 $ 1,052,621,694 $ 869,185,071
============ ============= ============= =============== =============
NET ASSETS:
Class A ......................... $ 46,107,207 $ 44,061,005 $ 109,059,872 $ 434,397,158 $ 583,256,963
Class B ......................... $ 6,350,018 $ 28,819,063 $ 19,310,861 $ 247,599,456 $ 53,046,347
Class D ......................... $ 40,976,808 $ 31,258,775 $ 64,300,510 $ 370,625,080 $ 232,881,761
SHARES OF CAPITAL
STOCK OUTSTANDING:
Class A ......................... 2,572,397 6,001,798 11,847,437 27,801,385 38,526,473
Class B ......................... 366,981 3,966,125 2,130,485 16,467,994 3,600,055
Class D ......................... 2,367,991 4,301,925 7,093,440 24,624,081 15,804,927
NET ASSET VALUE
PER SHARE:
CLASS A ............................ $17.92 $7.34 $9.20 $15.62 $15.14
CLASS B ............................ $17.30 $7.27 $9.06 $15.04 $14.73
CLASS D ............................ $17.30 $7.27 $9.06 $15.05 $14.73
</TABLE>
- ----------
* Includes affiliated issuers (a Series' holdings representing 5% or more of
the outstanding voting securities) with cost of $33,161,555 and $18,766,668,
and value of $41,889,165 and $16,750,024, respectively, for the Global
Smaller Companies Fund and the Global Technology Fund.
See Notes to Financial Statements.
- -----
60
<PAGE>
================================================================================
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
EMERGING GLOBAL GLOBAL
MARKETS GROWTH SMALLER GLOBAL
INTERNATIONAL GROWTH OPPORTUNITIES COMPANIES TECHNOLOGY
FUND FUND FUND FUND FUND
------------- ------------ --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends* ......................... $ 1,434,361 $ 1,103,505 $ 1,837,111 $ 14,523,587 $ 2,806,192
Interest ........................... 104,229 417,283 262,461 1,605,052 2,035,983
------------ ----------- ------------ ------------ -------------
TOTAL INVESTMENT INCOME** .......... 1,538,590 1,520,788 2,099,572 16,128,639 4,842,175
------------ ----------- ------------ ------------ -------------
EXPENSES:
Management fees .................... 993,229 1,110,307 1,903,374 9,494,033 8,488,410
Distribution and service fees ...... 601,623 590,104 1,045,286 6,396,967 4,126,955
Shareholder account services ....... 223,102 270,481 473,913 2,610,379 2,355,588
Custody and related services ....... 141,092 142,960 139,586 694,600 441,993
Registration ....................... 71,477 142,330 89,436 372,146 228,705
Shareholder reports
and communications ................ 71,016 75,730 88,324 342,336 404,769
Auditing and legal fees ............ 53,973 57,973 53,973 53,973 53,972
Directors' fees and expenses ....... 8,653 8,194 9,537 17,174 15,253
Miscellaneous ...................... 9,147 4,933 8,556 31,392 41,174
------------ ----------- ------------ ------------ -------------
TOTAL EXPENSES ..................... 2,173,312 2,403,012 3,811,985 20,013,000 16,156,819
------------ ----------- ------------ ------------ -------------
NET INVESTMENT LOSS ................ (634,722) (882,224) (1,712,413) (3,884,361) (11,314,644)
------------ ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)
on investments*** ................. 12,612,987 (148,704) 14,475,563 48,603,936 160,468,225
Net realized loss from
foreign currency
transactions*** ................... (6,357,450) (2,880,868) (5,288,647) (7,015,314) (2,395,338)
Net change in unrealized
appreciation/depreciation
of investments ..................... 1,745,746 2,540,710 16,851,124 49,634,066 83,247,639
Net change in unrealized
depreciation on translation
of assets and liabilities
denominated in foreign
currencies and forward
currency contracts ................ 1,928,031 (1,858,237) (1,171,623) (18,276,737) (1,868,340)
------------ ----------- ------------ ------------ -------------
NET GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ............. 9,929,314 (2,347,099) 24,866,417 72,945,951 239,452,186
------------ ----------- ------------ ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .................... $ 9,294,592 $(3,229,323) $ 23,154,004 $ 69,061,590 $ 228,137,542
============ =========== ============ ============ =============
- ----------
* Includes dividend income
from affiliated
issuers as follows: ........... -- -- -- $ 288,652 $ 150,923
** Net of foreign taxes
withheld as follows: .......... $165,480 $82,248 $197,366 2,104,238 525,966
*** Includes net realized gain
(including effect of foreign
currency transactions) from
affiliated issuers as follows: . -- -- -- 393,071 29,759,731
See Notes to Financial Statements
</TABLE>
-----
61
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS GLOBAL GROWTH
FUND GROWTH FUND OPPORTUNITIES FUND
---------------------------- ---------------------------- ---------------------------
YEAR ENDED OCTOBER 31, YEAR 5/28/96* YEAR 11/1/95*
____________________________ ENDED TO ENDED TO
1997 1996 10/31/97 10/31/96 10/31/97 10/31/96
---------- ---------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ........... $ (634,722) $ (58,354) $ (882,224) $ (165,128) $ (1,712,413) $ (985,123)
Net realized gain
(loss) on investments ........ 12,612,987 3,110,034 (148,704) (904,503) 14,475,563 (572,959)
Net realized gain
(loss) from foreign
currency transactions ......... (6,357,450) 2,141,677 (2,880,868) (48,331) (5,288,647) 280,999
Net change in unrealized
appreciation/depreciation
of investments ............... 1,745,746 6,001,037 2,540,710 (501,007) 16,851,124 17,026,140
Net change in
unrealized
appreciation/depreciation
on translation of assets and
liabilities denominated in
foreign currencies and
forward currency contracts ... 1,928,031 (4,614,858) (1,858,237) (405,204) (1,171,623) (2,809,600)
------------- ------------- ------------- ------------ ------------- -------------
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS .............. 9,294,592 6,579,536 (3,229,323) (2,024,173) 23,154,004 12,939,457
------------- ------------- ------------- ------------ ------------- -------------
DISTRIBUTIONS
TO SHAREHOLDERS:
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 .................... 8,433,918 12,139,764 24,772,191 19,208,602 12,893,684 106,023,483
Class B .................... 3,830,342 2,847,268 21,632,060 11,237,933 9,863,991 9,447,410
Class D .................... 7,260,659 18,419,176 16,452,673 12,152,846 11,847,943 48,762,322
Exchanged from
associated Funds:
Class A .................... 42,509,534 18,336,472 32,454,783 3,554,578 4,188,658 13,737,482
Class B .................... 546,088 52,151 3,193,456 20,098 1,014,306 147,370
Class D .................... 17,279,201 6,116,903 18,323,632 2,931,518 5,672,140 8,540,034
Shares issued in payment of gain distributions:
Class A .................... 1,907,643 1,773,043 -- -- -- --
Class B .................... 145,807 -- -- -- -- --
Class D .................... 2,266,472 1,649,485 -- -- -- --
------------- ------------- ------------- ------------ ------------- -------------
Total ......................... 84,179,664 61,334,262 116,828,795 49,105,575 45,480,722 186,658,101
------------- ------------- ------------- ------------ ------------- -------------
Cost of
shares repurchased:
Class A .................... (16,889,634) (15,705,367) (12,525,580) (997,418) (24,937,167) (15,204,795)
Class B .................... (285,808) (5,615) (2,633,033) (133,610) (1,352,960) (34,193)
Class D .................... (13,972,244) (4,688,461) (4,107,703) (404,805) (8,496,389) (3,136,356)
Exchanged into
associated Funds:
Class A .................... (43,254,302) (15,800,882) (19,719,002) (993,426) (5,055,701) (7,098,155)
Class B .................... (811,812) (1,437) (2,336,033) (96,640) (980,251) (169,376)
Class D .................... (21,316,046) (5,428,114) (12,208,736) (386,045) (5,447,579) (3,648,119)
------------- ------------- ------------- ------------ ------------- -------------
Total ......................... (96,529,846) (41,629,876) (53,530,087) (3,011,944) (46,270,047) (29,290,994)
------------- ------------- ------------- ------------ ------------- -------------
INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS ............... (12,350,182) 19,704,386 63,298,708 46,093,631 (789,325) 157,367,107
------------- ------------- ------------- ------------ ------------- -------------
INCREASE (DECREASE)
IN NET ASSETS ................ (8,323,972) 21,721,760 60,069,385 44,069,458 22,364,679 170,306,564
NET ASSETS:
Beginning of period ........... 101,758,005 80,036,245 44,069,458 -- 170,306,564 --
------------- ------------- ------------- ------------ ------------- -------------
END OF PERIOD ................. $ 93,434,033 $ 101,758,005 $ 104,138,843 $ 44,069,458 $ 192,671,243 $ 170,306,564
============= ============= ============= ============ ============= =============
</TABLE>
- ----------
See footnotes on page 63.
- -----
62
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
------------------------------- -----------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
------------------------------- -----------------------------
1997 1996 1997 1996
-------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ....................................... $ (3,884,361) $ (1,521,537) $ (11,314,644) $ (6,732,322)
Net realized gain (loss) on investments ................... 48,603,936 36,490,841 160,468,225 (19,588,016)
Net realized gain (loss) from foreign
currency transactions ..................................... (7,015,314) 1,559,761 (2,395,338) 5,689,533
Net change in unrealized appreciation/depreciation
of investments ............................................ 49,634,066 14,883,512 83,247,639 (26,884,293)
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities denominated in
foreign currencies and forward currency contracts ......... (18,276,737) (6,531,471) (1,868,340) (2,377,802)
--------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ......... 69,061,590 44,881,106 228,137,542 (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 ................................................ 161,210,830 216,788,438 53,544,965 202,973,417
Class B ................................................ 160,923,469 105,243,040 30,651,040 19,512,733
Class D ................................................ 129,977,455 177,428,825 27,634,257 93,281,519
Shares issued in payment of dividends-- Class A ........... -- -- -- 530,711
Exchanged from associated Funds:
Class A ................................................ 38,707,367 71,523,117 131,077,214 49,024,078
Class B ................................................ 8,353,794 576,794 7,378,122 119,863
Class D ................................................ 22,459,122 32,459,050 31,456,056 36,228,561
Shares issued in payment of gain distributions:
Class A ................................................ 15,752,220 7,033,698 -- 27,593,949
Class B ................................................ 4,800,702 -- -- --
Class D ................................................ 13,378,106 6,106,235 -- 10,345,726
--------------- ------------- ------------- -------------
Total ..................................................... 555,563,065 617,159,197 281,741,654 439,610,557
--------------- ------------- ------------- -------------
Cost of shares repurchased:
Class A ................................................ (100,080,081) (30,945,950) (119,817,104) (88,142,523)
Class B ................................................ (19,743,793) (900,770) (4,478,196) (232,986)
Class D ................................................ (61,956,065) (17,014,912) (46,935,136) (27,805,782)
Exchanged into associated Funds:
Class A ................................................ (46,909,181) (34,854,479) (141,838,011) (74,146,717)
Class B ................................................ (17,273,307) (326,119) (6,449,635) (142,667)
Class D ................................................ (29,350,663) (11,852,034) (37,285,917) (51,102,325)
--------------- ------------- ------------- -------------
Total ..................................................... (275,313,090) (95,894,264) (356,803,999) (241,573,000)
--------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS ................................ 280,249,975 521,264,933 (75,062,345) 198,037,557
--------------- ------------- ------------- -------------
INCREASE IN NET ASSETS .................................... 312,817,684 551,777,083 153,075,197 106,755,713
NET ASSETS:
Beginning of year ......................................... 739,804,010 188,026,927 716,109,874 609,354,161
--------------- ------------- ------------- -------------
END OF YEAR ............................................... $ 1,052,621,694 $ 739,804,010 $ 869,185,071 $ 716,109,874
=============== ============= ============= =============
</TABLE>
- ----------
* Commencement of operations.
** The Fund began offering Class B shares on April 22, 1996, for the then
existing Series.
See Notes to Financial Statements.
------
63
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
1. MULTIPLE CLASSES OF SHARES -- 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 commencements 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 of 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, if applicable, of 1% imposed on 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. SIGNIFICANT ACCOUNTING POLICIES -- 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. SECURITY VALUATION -- 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. FOREIGN SECURITIES -- Investments in foreign securities will primarily be
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 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
- ------
64
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
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. FORWARD CURRENCY CONTRACTS -- The Fund may enter into forward currency
contracts in order to hedge its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings, or other amounts
receivable or payable in foreign currency. A forward contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. Certain risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms
of their contracts. The contracts are valued daily at current exchange rates
and any unrealized gain or loss is included in net unrealized appreciation
or depreciation on translation of assets and liabilities denominated in
foreign currencies and forward currency contracts. The gain or loss, if any,
arising from the difference between the settlement value of the forward
contract and the closing of such contract, is included in net realized gain
or loss from foreign currency transactions.
d. FEDERAL TAXES -- There is no provision for federal income tax. Each Series
has elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized, if
any, annually. Withholding taxes on foreign dividends and interest have been
provided for in accordance with the Fund's understanding of the applicable
country's tax rules and rates.
e. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME 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.
f. MULTIPLE CLASS ALLOCATIONS -- All income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares based upon the relative value of
shares of each class. Class-specific expenses, which include distribution
and service fees and any other items that are specifically attributed to a
particular class, are charged directly to such class. For the year ended
October 31, 1997, distribution and service fees were the only class-specific
expenses.
g. DISTRIBUTIONS TO SHAREHOLDERS -- The treatment for financial statement
purposes of distributions made to shareholders during the year from net
investment income or net realized gains may differ from their ultimate
treatment for federal income tax purposes. These differences primarily are
caused by differences in the timing of the recognition of certain components
of income, expense, or 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.
3. PURCHASES AND SALES OF SECURITIES-- Purchases and sales of portfolio
securities, excluding short-term investments, for the year ended October, 31,
1997, were as follows:
SERIES PURCHASES SALES
- ---------------- ----------- -----------
International Fund .................. $ 79,865,255 $ 99,302,267
Emerging Markets
Growth Fund ..................... 112,355,044 64,788,036
Global Growth
Opportunities Fund .............. 145,135,570 151,477,122
Global Smaller
Companies Fund .................. 774,347,865 522,198,426
Global Technology Fund .............. 756,086,666 852,872,407
At October 31, 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 .................. $ 14,200,412 $ 4,729,831
Emerging Markets
Growth Fund ..................... 9,004,036 9,321,675
Global Growth
Opportunities Fund .............. 45,822,004 15,905,127
Global Smaller
Companies Fund .................. 172,405,198 113,079,933
Global Technology Fund .............. 185,026,748 85,633,341
4. MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS -- 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 the Emerging Markets Growth Fund and 1.00% per annum of each
of the
-----
65
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
other Series' average daily net assets, of which 1.15% and 0.90%, respectively,
are paid to the Subadviser.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares, and an affiliate of the Manager, received
concessions after commissions were paid to dealers for sale of Class A shares as
follows:
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
- ---------------- ------------ -----------
International Fund .................. $ 17,927 $ 134,739
Emerging Markets
Growth Fund ..................... 69,894 552,204
Global Growth
Opportunities Fund .............. 44,965 358,779
Global Smaller
Companies Fund .................. 400,220 3,231,906
Global Technology Fund .............. 210,590 1,713,143
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 year
ended October 31, 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 $101,145, $88,081,
$270,908, $997,468, and $1,450,470, respectively, or 0.20%, 0.23%, 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 year ended October 31, 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 .................. $ 48,895 $ 451,583
Emerging Markets Growth Fund ........ 229,582 272,441
Global Growth
Opportunities Fund .............. 152,725 621,653
Global Smaller
Companies Fund .................. 1,899,699 3,499,800
Global Technology Fund .............. 377,706 2,298,779
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares occurring within one year of purchase and on certain redemptions
of Class Ashares occurring within 18 months of purchase. For the year ended
October 31, 1997, such charges were as follows:
SERIES AMOUNT
- ---------------- ---------
International Fund ....................... $ 13,490
Emerging Markets Growth Fund ............. 13,185
Global Growth Opportunities Fund ......... 14,175
Global Smaller Companies Fund ............ 172,825
Global Technology Fund ................... 52,154
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 year ended October 31, 1997, were as follows:
SERIES AMOUNT
- ---------------- ---------
International Fund ....................... $ 10,837
Emerging Markets Growth Fund ............. 59,915
Global Growth Opportunities Fund ......... 28,585
Global Smaller Companies Fund ............ 446,351
Global Technology Fund ................... 86,256
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of Fund shares, as well as distribution and
service fees pursuant to the Plan. For the year ended October 31, 1997, Seligman
Services, Inc. received commissions from the sale of Fund shares and
distribution and service fees, pursuant to the Plan, as follows:
DISTRIBUTION
SERIES COMMISSIONS AND SERVICE FEES
- ----------------- ------------ -----------------
International Fund ............. $ 1,009 $18,553
Emerging Markets
Growth Fund ................ 7,957 5,900
Global Growth
Opportunities Fund ......... 1,921 6,876
Global Smaller
Companies Fund ............. 35,359 45,222
Global Technology Fund ......... 38,720 86,328
- -----
66
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
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 $ 223,102
Emerging Markets Growth Fund 270,481
Global Growth Opportunities Fund 473,913
Global Smaller Companies Fund 2,610,379
Global Technology Fund 2,355,588
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.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. Deferred fees and the related accrued interest are not deductible for
federal income tax purposes until such amounts are paid. The annual cost of such
fees and interest is included in directors' fees and expenses, and the following
accumulated balances thereof at October 31, 1997 are included in other
liabilities:
SERIES AMOUNT
- ---------------- --------
International Fund $11,851
Emerging Markets GrowthFund 1,128
Global Growth Opportunities Fund 2,528
Global Smaller Companies Fund 9,902
Global Technology Fund 6,536
5. COMMITTED LINE OF CREDIT -- The Fund has a $100 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
0.50% 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. LOSS CARRYFORWARD -- 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, 1997, the
Emerging Markets Growth Fund had a net capital loss carryforward for federal
income tax purposes of $3,465,552, which is available for offset against future
taxable capital gains, expiring in various amounts through 2005. Accordingly, no
capital gain distributions are expected to be paid to shareholders until net
capital gains have been realized in excess of the available capital loss
carryforward.
7. AFFILIATED ISSUERS -- As defined under the Investment Company Act of 1940, as
amended, affiliated issuers are those issuers in which a Series' holdings
represent 5% or more of the outstanding voting securities. A summary of the
Fund's transactions in the securities of these issuers during the year ended
October 31, 1997 is as follows:
<TABLE>
<CAPTION>
GROSS
PURCHASES GROSS SALES
BEGINNING AND AND ENDING REALIZED DIVIDEND ENDING
AFFILIATE SHARES ADDITIONS REDUCTIONS SHARES GAIN INCOME VALUE
- --------- ------ ---------- ----------- ------ -------- ------- ---------
GLOBAL SMALLER
COMPANIES FUND
<S> <C> <C> <C> <C> <C> <C> <C>
La Doria ................... 857,766 1,394,400 -- 2,252,166 $ -- $163,926 $ 6,478,379
L'Europeenne
d'Extincteurs ............ 131,660 32,282 21,540 142,402 393,071 82,617 9,497,650
FactSet Research
Systems ................. -- 500,000 -- 500,000 -- -- 13,343,750
Prodega .................... 4,450 7,903 -- 12,353 -- 42,109 6,460,636
Simon Transportation
Services ................. -- 270,000 -- 270,000 -- -- 6,108,750
----------- -------- -----------
$ 393,071* $288,652 $41,889,165
=========== ======== ===========
GLOBAL TECHNOLOGY
FUND
Asyst Technologies ......... 300,000 150,000 450,000 -- $14,740,041 $ -- $ --
Linx Printing
Technology ............... 820,000 -- 250,000 570,000 281,287 42,459 1,456,385
IlionGroup ................. 1,669,914 -- 53,000 1,616,914 54,767 108,464 7,368,639
Veeco Instruments .......... 400,000 400,000 600,000 200,000 14,683,636 -- 7,925,000
----------- -------- -----------
$29,759,731* $150,923 $16,750,024
=========== ======== ===========
</TABLE>
- ----------
* Includes net realized gain (loss) from foreign currency transactions of
$(141,739) and $20,294, for the Global Smaller Companies Fund and the Global
Technology Fund, respectively.
-----
67
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
8. CAPITAL STOCK SHARE TRANSACTIONS -- The Fund has 2,000,000,000 shares of
Capital Stock authorized. The Board of Directors, at its discretion, may
classify any unissued shares of Capital Stock among any Series of the Fund. As
of October 31, 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
-------------------------- -------------------------- --------------------------
YEAR 5/28/96* YEAR 11/1/95*
YEAR ENDED OCTOBER 31, ENDED TO ENDED TO
--------------------------
1997 1996 10/31/97 10/31/96 10/31/97 10/31/96
------------ ------------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 469,762 707,786 2,993,423 2,715,379 1,449,286 14,315,714
Class B 219,118 167,160 2,612,415 1,589,508 1,123,386 1,161,258
Class D 418,939 1,095,491 2,012,007 1,719,727 1,356,808 6,425,478
Exchanged from
associated Funds:
Class A 2,324,501 1,076,633 4,057,896 501,328 476,273 1,797,362
Class B 30,506 3,104 391,346 2,904 110,609 18,033
Class D 987,349 365,666 2,226,146 415,187 649,300 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 4,709,540 3,624,161 14,293,233 6,944,033 5,165,662 24,826,338
--------- --------- --------- --------- --------- ---------
Shares repurchased:
Class A (966,373) (918,125) (1,498,674) (143,005) (2,814,964) (1,897,331)
Class B (15,472) (327) (312,134) (19,141) (147,394) (4,203)
Class D (822,399) (278,839) (502,678) (58,321) (965,125) (393,805)
Exchanged into
associated Funds:
Class A (2,337,951) (922,041) (2,482,147) (142,402) (568,846) (910,057)
Class B (45,879) (87) (284,989) (13,784) (110,456) (20,748)
Class D (1,216,560) (323,609) (1,454,997) (55,146) (626,078) (461,631)
--------- --------- --------- --------- --------- ---------
Total (5,404,634) (2,443,028) (6,535,619) (431,799) (5,232,863) (3,687,775)
--------- --------- --------- --------- --------- ---------
Increase
(decrease) in shares (695,094) 1,181,133 7,757,614 6,512,234 (67,201) 21,138,563
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
-------------------------- --------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
-------------------------- --------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Sale of shares:
<S> <C> <C> <C> <C>
Class A 10,709,397 14,815,923 3,700,869 17,384,851
Class B 11,006,362 7,109,733 2,147,619 1,722,202
Class D 8,914,612 12,391,966 1,953,820 8,129,479
Shares issued in payment
of dividends-- Class A -- -- -- 46,553
Exchanged from
associated Funds:
Class A 2,567,331 4,872,301 9,603,055 4,299,624
Class B 578,628 38,810 599,186 10,746
Class D 1,545,821 2,260,491 2,118,807 3,216,569
Shares issued
in payment of
gain distributions:
Class A 1,069,396 543,143 -- 2,420,521
Class B 335,948 -- -- --
Class D 936,187 481,944 -- 918,803
--------- --------- --------- ---------
Total 37,663,682 42,514,311 20,123,356 38,149,348
--------- --------- --------- ---------
Shares repurchased:
Class A (6,615,043) (2,088,149) (8,669,868) (7,730,984)
Class B (1,358,539) (60,958) (325,415) (21,522)
Class D (4,192,374) (1,186,520) (3,500,176) (2,466,759)
Exchanged into
associated Funds:
Class A (3,071,754) (2,373,469) (10,296,821) (6,549,438)
Class B (1,159,574) (22,416) (519,418) (13,343)
Class D (1,979,913) (822,351) (2,561,251) (4,547,765)
--------- --------- --------- ---------
Total (18,377,197) (6,553,863) (25,872,949) (21,329,811)
--------- --------- --------- ---------
Increase
(decrease) in shares 19,286,485 35,960,448 (5,749,593) 16,819,537
========== ========== ========== ==========
</TABLE>
- ----------------
* Commencement of operations.
- ------
68
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
9. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS-- At October 31, 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 DATE VALUE US $ (DEPRECIATION)
- ----------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
Purchases:
German deutschemarks ......................... 166,181 96,757 11/03/97 96,172 $ (585)
Swedish kronor ............................... 480,790 64,246 11/03/97 64,054 (192)
Hong Kong dollars ............................ 932,460 120,000 11/21/97 120,300 300
---------
(477)
---------
Sales:
Netherland guilders .......................... 382,720 197,584 11/03/97 196,418 1,166
Swiss francs ................................. 706,505 504,574 11/03/97 502,725 1,849
Australian dollars ........................... 174,218 122,162 11/05/97 122,240 (78)
Japanese yen ................................. 25,705,417 213,660 11/05/97 213,731 (71)
Japanese yen ................................. 944,000,000 8,000,000 11/20/97 7,860,117 139,883
Hong Kong dollars ............................ 4,583,740 580,000 11/21/97 591,366 (11,366)
---------
131,383
---------
$ 130,906
=========
EMERGING MARKETS GROWTH FUND
Sales:
Hong Kong dollars ............................ 2,054,780 260,000 11/21/97 265,095 $ (5,095)
=========
GLOBAL GROWTH OPPORTUNITIES FUND
Purchases:
Singapore dollars ............................ 1,115,458 708,227 11/03/97 708,002 $ (225)
Netherland guilders .......................... 1,197,587 615,789 11/04/97 614,620 (1,169)
Swiss francs ................................. 1,109,521 791,723 11/04/97 789,498 (2,225)
Japanese yen ................................. 1,180,000,000 9,868,036 11/20/97 9,825,146 (42,890)
Hong Kong dollars ............................ 4,446,855 569,964 11/21/97 573,706 3,742
---------
(42,767)
---------
Sales:
Japanese yen ................................. 178,156,208 1,480,809 11/04/97 1,481,302 (493)
Japanese yen ................................. 1,180,000,000 10,000,000 11/20/97 9,825,146 174,854
Hong Kong dollars ............................ 12,170,620 1,540,000 11/21/97 1,570,179 (30,179)
Japanese yen ................................. 1,199,350,000 10,000,000 11/21/97 9,980,444 19,556
---------
163,738
---------
$ 120,971
=========
GLOBAL SMALLER COMPANIES FUND
Purchases:
German deutschemarks ......................... 2,099,320 1,222,312 11/03/97 1,214,920 $ (7,392)
Swiss francs ................................. 732,782 523,341 11/03/97 521,423 (1,918)
French francs ................................ 588,808 101,870 11/04/97 101,739 (131)
British pounds ............................... 262,780 439,710 11/05/97 440,275 565
Hong Kong dollars ............................ 7,770,500 1,000,000 11/21/97 1,002,503 2,503
---------
(6,373)
---------
Sales:
S. Korean wons ............................... 696,832,112 721,657 11/03/97 721,657 --
Swedish kronor ............................... 307,299 41,064 11/03/97 40,940 124
Malaysia ringgits ............................ 333,649 97,644 11/04/97 99,315 (1,671)
Singapore dollars ............................ 2,202,084 1,395,048 11/04/97 1,397,705 (2,657)
Japanese yen ................................. 63,088,294 524,381 11/05/97 524,556 (175)
Japanese yen ................................. 4,956,000,000 42,000,000 11/20/97 41,265,612 734,388
Hong Kong dollars ............................ 60,062,800 7,600,000 11/21/97 7,748,939 (148,939)
---------
581,070
---------
$ 574,697
=========
GLOBAL TECHNOLOGY FUND
Purchases:
French francs ................................ 131,319 22,814 11/03/97 22,690 $ (124)
British pounds ............................... 83,464 139,668 11/04/97 139,839 171
French francs ................................ 2,154,393 372,732 11/04/97 372,252 (480)
---------
(433)
---------
Sales:
Japanese yen ................................. 2,350,605,000 19,605,121 11/28/97 19,594,906 10,215
---------
$ 9,782
=========
</TABLE>
-----
69
<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
assuming 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. 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 periods beginning November 1, 1995.
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------
INTERNATIONAL FUND YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 1994 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR ................ $17.17 $16.71 $17.67 $15.98 $11.89
------ ------ ------ ------ ------
Net investment income (loss) ...................... (0.04) 0.05 0.06 0.04 0.04
Net realized and unrealized
investment gain (loss) ........................... 2.47 1.77 (0.42) 0.91 4.25
Net realized and unrealized
gain (loss) on foreign
currency transactions ............................. (0.79) (0.44) 0.09 1.08 (0.17)
------ ------ ------ ------ ------
INCREASE (DECREASE)
FROM INVESTMENT OPERATIONS ....................... 1.64 1.38 (0.27) 2.03 4.12
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 ............................... 0.75 0.46 (0.96) 1.69 4.09
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR ...................... $17.92 $17.17 $16.71 $17.67 $15.98
====== ====== ====== ====== ======
TOTAL RETURN
BASED ON NET ASSET VALUE: ........................ 9.83% 8.43% (1.24)% 12.85% 34.78%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .................... 1.78% 1.81% 1.69% 1.63% 1.75%
Net investment income
(loss) to average net assets ..................... (0.23)% 0.28% 0.35% 0.27% 0.27%
Portfolio turnover ................................ 83.11% 55.71% 60.70% 39.59% 46.17%
Average commission rate paid ...................... $0.0201 $0.0180
NET ASSETS, END OF YEAR
(000s omitted) ................................... $46,107 $50,998 $48,763 $62,922 $33,134
Without expense reimbursement
and/or management fee waiver:**
Net investment loss per share ................... $(0.04)
Ratios:
Expenses to average net assets .................. 2.30%
Net investment
loss to average net assets ..................... (0.28)%
</TABLE>
- ----------
See footnotes on page 75.
- -----
70
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B CLASS D
---------------------- ---------------------------------------------------------
YEAR 4/22/96* YEAR ENDED OCTOBER 31, 9/21/93*
INTERNATIONAL FUND (CONTINUED) ENDED TO ----------------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 1997 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 ..................... (0.18) (0.03) (0.18) (0.08) (0.07) (0.09) (0.03)
Net realized and unrealized
investment gain (loss) ................. 2.42 (0.54) 2.42 1.75 (0.43) 0.91 1.17
Net realized and unrealized
gain (loss) on foreign
currency transactions ................... (0.79) (0.07) (0.79) (0.44) 0.09 1.08 (0.41)
------ ------ ------ ------ ------ ------ ------
INCREASE (DECREASE)
FROM INVESTMENT
OPERATIONS ............................. 1.45 (0.64) 1.45 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 ........................ 0.56 (0.64) 0.56 0.31 (1.10) 1.57 0.73
------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD .......................... $17.30 $16.74 $17.30 $16.74 $16.43 $17.53 $15.96
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED
ON NET ASSETVALUE: ..................... 8.90% (3.68)% 8.90% 7.62% (2.08)% 12.03% 4.79%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .......... 2.58% 2.66%+ 2.58% 2.64% 2.50% 2.50% 2.50%+
Net investment loss
to average net assets .................. (1.03)% (0.35)%+ (1.03)% (0.47)% (0.44)% (0.53)% (1.86)%+
Portfolio turnover ...................... 83.11% 55.71%+++ 83.11% 55.71% 60.70% 39.59% 46.17%++
Average commission
rate paid .............................. $0.0201 $0.0180+++ $0.0201 $0.0180
NET ASSETS, END OF
PERIOD (000s omitted) .................. $6,350 $2,843 $40,977 $47,917 $31,273 $19,903 $1,648
Without expense
reimbursement and/or
management fee waiver:**
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 75.
-----
71
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------- ----------------------
YEAR 5/28/96* YEAR 5/28/96*
EMERGING MARKETS GROWTH FUND ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 10/31/97 10/31/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ............................ $6.78 $7.14 $6.76 $7.14
----- ----- ----- -----
Net investment loss ............................................. (0.05) (0.02) (0.11) (0.04)
Net realized and unrealized
investment gain (loss) ......................................... 1.05 (0.25) 1.06 (0.25)
Net realized and unrealized
loss on foreign currency transactions .......................... (0.44) (0.09) (0.44) (0.09)
----- ----- ----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS .................. 0.56 (0.36) 0.51 (0.38)
Dividends paid .................................................. -- -- -- --
Distributions from net gain realized ............................ -- -- -- --
----- ----- ----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ...................... 0.56 (0.36) 0.51 (0.38)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD .................................. $7.34 $6.78 $7.27 $6.76
===== ===== ===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .......................... 8.26% (5.04)% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .................................. 2.27% 2.22%+ 3.04% 3.00%+
Net investment loss to average net assets ....................... (0.56)% (0.69)%+ (1.33)% (1.47)%+
Portfolio turnover .............................................. 84.09% 12.24% 84.09% 12.24%
Average commission rate paid .................................... $0.0013 $0.0156 $0.0013 $0.0156
NET ASSETS, END OF PERIOD (000s omitted) ........................ $44,061 $19,864 $28,819 $10,541
Without expense reimbursement
and/or management fee waiver:**
Net investment loss per share ................................. $(0.05) $(0.07)
Ratios:
Expenses to average net assets ................................ 3.02%+ 3.80%+
Net investment loss to average net assets ..................... (1.49)%+ (2.27)%+
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------
YEAR 5/28/96*
EMERGING MARKETS GROWTH FUND ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
-------- --------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ............................ $6.76 $7.14
----- -----
Net investment loss ............................................. (0.11) (0.04)
Net realized and unrealized
investment gain (loss) ......................................... 1.06 (0.25)
Net realized and unrealized
loss on foreign currency transactions .......................... (0.44) (0.09)
----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS .................. 0.51 (0.38)
Dividends paid .................................................. -- --
Distributions from net gain realized ............................ -- --
----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ...................... 0.51 (0.38)
----- -----
NET ASSET VALUE, END OF PERIOD .................................. $7.27 $6.76
===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .......................... 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .................................. 3.04% 3.00%+
Net investment loss to average net assets ....................... (1.33)% (1.47)%+
Portfolio turnover .............................................. 84.09% 12.24%
Average commission rate paid .................................... $0.0013 $0.0156
NET ASSETS, END OF PERIOD (000s omitted) ........................ $31,259 $13,664
Without expense reimbursement and/or management fee waiver:**
Net investment loss per share ................................. $(0.07)
Ratios: .......................................................
Expenses to average net assets ................................ 3.80%+
Net investment loss to average net assets ..................... (2.27)%+
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------ ------------------------
YEAR 11/1/95* YEAR 4/22/96*
GLOBAL GROWTH OPPORTUNITIES FUND ENDED TO ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96 10/31/97 10/31/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $8.08 $7.14 $8.02 $8.04
----- ----- ----- -----
Net investment loss ....................................... (0.05) (0.03) (0.12) (0.04)
Net realized and
unrealized investment gain ............................... 1.47 1.12 1.46 0.06
Net realized and
unrealized loss on
foreign currency transactions ............................ (0.30) (0.15) (0.30) (0.04)
----- ----- ----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ............ 1.12 0.94 1.04 (0.02)
Dividends paid ............................................ -- -- -- --
Distributions from net gain realized ...................... -- -- -- --
----- ----- ----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ................ 1.12 0.94 1.04 (0.02)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ............................ $9.20 $8.08 $9.06 $8.02
===== ===== ===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .................... 13.86% 13.17% 12.97% (0.25)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............................ 1.69% 1.91% 2.45% 2.53%+
Net investment loss to average net assets ................. (0.59)% (0.53)% (1.35)% (1.13)%+
Portfolio turnover ........................................ 79.32% 31.44% 79.32% 31.44%+++
Average commission rate paid .............................. $0.0251 $0.0160 $0.0251 $0.0160+++
NET ASSETS, END OF PERIOD (000s omitted) .................. $109,060 $107,509 $19,311 $ 9,257
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------
YEAR 11/1/95*
GLOBAL GROWTH OPPORTUNITIES FUND ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
-------- --------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $8.02 $7.14
----- -----
Net investment loss ....................................... (0.12) (0.09)
Net realized and unrealized investment gain ............... 1.46 1.12
Net realized and unrealized loss on
foreign currency transactions ............................ (0.30) (0.15)
----- -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ............ 1.04 0.88
Dividends paid ............................................ -- --
Distributions from net gain realized ...................... -- --
----- -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ................ 1.04 0.88
----- -----
NET ASSET VALUE, END OF PERIOD ............................ $9.06 $8.02
===== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .................... 12.97% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............................ 2.45% 2.67%
Net investment loss to average net assets ................. (1.35)% (1.25)%
Portfolio turnover ........................................ 79.32% 31.44%
Average commission rate paid .............................. $0.0251 $0.0160
NET ASSETS, END OF PERIOD (000s omitted) .................. $64,300 $53,540
</TABLE>
- ----------
See footnotes on page 75.
- -----
72
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES FUND YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 1994 1993
--------- --------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR .............. $15.14 $13.90 $11.93 $ 9.98 $7.15
------ ------ ------ ------ -----
Net investment income (loss) .................... -- -- (0.02) (0.08) (0.02)
Net realized and unrealized
investment gain ................................ 1.61 2.38 2.24 1.57 3.07
Net realized and unrealized
gain (loss) on foreign
currency transactions .......................... (0.40) (0.18) 0.08 0.52 (0.20)
------ ------ ------ ------ -----
INCREASE FROM INVESTMENT OPERATIONS ............. 1.21 2.20 2.30 2.01 2.85
Dividends paid -- -- -- -- (0.02)
Distributions from net gain realized ............ (0.73) (0.96) (0.33) (0.06) --
------ ------ ------ ------ -----
NET INCREASE IN NET ASSET VALUE ................. 0.48 1.24 1.97 1.95 2.83
------ ------ ------ ------ -----
NET ASSET VALUE, END OF YEAR .................... $15.62 $15.14 $13.90 $11.93 $9.98
====== ====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .......... 8.28% 16.95% 20.10% 20.28% 39.86%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .................. 1.67% 1.75% 1.83% 1.92% 1.98%
Net investment income (loss)
to average net assets .......................... 0.02% 0.01% (0.20)% (0.77)% (0.29)%
Portfolio turnover .............................. 57.24% 45.38% 63.05% 62.47% 60.03%
Average commission rate paid .................... $0.0166 $0.0211
NET ASSETS, END OF YEAR (000s omitted) .......... $434,397 $350,359 $102,479 $46,269 $20,703
Without management fee waiver and
expense reimbursement:**
Net investment loss per share ................. $(0.18)
Ratios:
Expenses to average net assets ................ 3.90%
Net investment loss to average net assets ..... (2.21)%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------
YEAR 4/22/96*
ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
-------- --------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ......................... $14.72 $14.44
------ ------
Net investment loss .......................................... (0.11) (0.06)
Net realized and unrealized investment gain .................. 1.56 0.33
Net realized and unrealized gain (loss) on foreign
currency transactions ........................................ (0.40) 0.01
------ ------
INCREASE FROM INVESTMENT OPERATIONS .......................... 1.05 0.28
Dividends paid -- --
Distributions from net gain realized ......................... (0.73) --
------ ------
NET INCREASE IN NET ASSET VALUE .............................. 0.32 0.28
------ ------
NET ASSET VALUE, END OF PERIOD ............................... $15.04 $14.72
====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ....................... 7.39% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............................... 2.43% 2.54%+
Net investment loss to average net assets .................... (0.74)% (0.80)%+
Portfolio turnover ........................................... 57.24% 45.38%+++
Average commission rate paid ................................. $0.0166 $0.0211+++
NET ASSETS, END OF PERIOD (000s omitted) ..................... $247,600 $103,968
Without management fee waiver and
expense reimbursement:**
Net investment loss per share ..............................
Ratios:
Expenses to average net assets .............................
Net investment loss to average net assets ..................
</TABLE>
<TABLE>
<CAPTION>
CLASS D
----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 5/3/93*
----------------------------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 1994 10/31/93
-------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ............ $14.72 $13.63 $11.80 $ 9.94 $8.52
------ ------ ------ ------ ------
Net investment loss ............................. (0.11) (0.11) (0.12) (0.16) (0.05)
Net realized and unrealized
investment gain ................................ 1.57 2.34 2.20 1.57 1.60
Net realized and unrealized
gain (loss) on foreign
currency transactions .......................... (0.40) (0.18) 0.08 0.51 (0.13)
------ ------ ------ ------ ------
INCREASE FROM INVESTMENT OPERATIONS ............. 1.06 2.05 2.16 1.92 1.42
Dividends paid -- -- -- -- --
Distributions from net gain realized ............ (0.73) (0.96) (0.33) (0.06) --
------ ------ ------ ------ ------
NET INCREASE IN NET ASSET VALUE ................. 0.33 1.09 1.83 1.86 1.42
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .................. $15.05 $14.72 $13.63 $11.80 $9.94
====== ====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSET VALUE: .......... 7.47% 16.14% 19.11% 19.45% 16.67%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .................. 2.43% 2.51% 2.61% 2.70% 2.75%+
Net investment loss to average net assets ....... (0.74)% (0.75)% (0.97)% (1.53)% (1.35)%+
Portfolio turnover .............................. 57.24% 45.38% 63.05% 62.47% 60.03%++
Average commission rate paid .................... $0.0166 $0.0211
NET ASSETS, END OF PERIOD (000s omitted) ........ $370,625 $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 75.
-----
73
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
YEAR ENDED OCTOBER 31, 5/23/94*
GLOBAL TECHNOLOGY FUND ------------------------------------------ TO
PER SHARE OPERATING PERFORMANCE: 1997 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 ............................................ (0.16) (0.08) (0.10) (0.01)
Net realized and unrealized
investment gain (loss) ........................................ 4.06 (0.92) 4.90 1.08
Net realized and unrealized gain
(loss) on foreign currency transactions ....................... (0.07) 0.05 (0.05) 0.16
------ ------ ------ -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ................. 3.83 (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 ..................... 3.83 (1.74) 4.68 1.23
------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD ................................. $15.14 $11.31 $13.05 $8.37
====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSETVALUE: .......................... 33.86% (7.33)% 57.31% 17.23%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................................. 1.67% 1.75% 1.91% 2.00%+
Net investment loss to average net assets ...................... (1.10)% (0.74)% (0.89)% (0.45)%+
Portfolio turnover ............................................. 94.06% 73.00% 87.42% 29.20%
Average commission rate paid ................................... $0.0226 $0.0182
NET ASSETS, END OF PERIOD (000s omitted) ....................... $583,257 $499,858 $447,732 $50,719
Without expense reimbursement
and/or management fee waiver:**
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 75.
- -----
74
<PAGE>
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
------------------------
YEAR 4/22/96*
GLOBAL TECHNOLOGY FUND (CONTINUED) ENDED TO
PER SHARE OPERATING PERFORMANCE: 10/31/97 10/31/96
--------- ---------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ....................................... $11.09 $11.47
------ ------
Net investment loss ........................................................ (0.26) (0.08)
Net realized and unrealized investment gain (loss) ......................... 3.97 (0.39)
Net realized and unrealized gain (loss) on foreign
currency transactions .................................................... (0.07) 0.09
------ ------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ............................. 3.64 (0.38)
Dividends paid ............................................................. -- --
Distributions from net gain realized ....................................... -- --
------ ------
NET INCREASE (DECREASE) IN NET ASSET VALUE ................................. 3.64 (0.38)
------ ------
NET ASSET VALUE, END OF PERIOD ............................................. $14.73 $11.09
====== ======
TOTAL RETURN BASED ON NET ASSETVALUE: ...................................... 32.82% (3.31)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............................................. 2.42% 2.51%+
Net investment loss to average net assets .................................. (1.85)% (1.40)%+
Portfolio turnover ......................................................... 94.06% 73.00%+++
Average commission rate paid ............................................... $0.0226 $0.0182+++
NET ASSETS, END OF PERIOD (000s omitted) ................................... $53,046 $18,840
Without expense reimbursement and/or management fee waiver:**
Net investment loss per share ............................................
Ratios:
Expenses to average net assets ...........................................
Net investment loss to average net assets ................................
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------------------------
YEAR ENDED OCTOBER 31, 5/23/94*
GLOBAL TECHNOLOGY FUND (CONTINUED) ------------------------------------------- TO
PER SHARE OPERATING PERFORMANCE: 1997 1996 1995 10/31/94
-------- -------- -------- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $11.09 $12.89 $ 8.34 $7.14
------ ------ ------ -----
Net investment loss ....................................... (0.26) (0.17) (0.18) (0.04)
Net realized and unrealized investment gain (loss) ........ 3.97 (0.91) 4.85 1.08
Net realized and unrealized gain (loss) on foreign
currency transactions ................................... (0.07) 0.05 (0.05) 0.16
------ ------ ------ -----
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ............ 3.64 (1.03) 4.62 1.20
Dividends paid ............................................ -- -- -- --
Distributions from net gain realized ...................... -- (0.77) (0.07) --
------ ------ ------ -----
NET INCREASE (DECREASE) IN NET ASSET VALUE ................ 3.64 (1.80) 4.55 1.20
------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD ............................ $14.73 $11.09 $12.89 $8.34
====== ====== ====== =====
TOTAL RETURN BASED ON NET ASSETVALUE: ..................... 32.82% (8.07)% 55.95% 16.81%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............................ 2.42% 2.52% 2.66% 2.75%+
Net investment loss to average net assets ................. (1.85)% (1.50)% (1.63)% (1.22)%+
Portfolio turnover ........................................ 94.06% 73.00% 87.42% 29.20%
Average commission rate paid .............................. $0.0226 $0.0182
NET ASSETS, END OF PERIOD (000s omitted) .................. $232,882 $197,412 $161,622 $6,499
Without expense reimbursement
and/or management fee waiver:**
Net investment loss per share ........................... $(0.06)
Ratios: .................................................
Expenses to average net assets .......................... 3.36%+
Net investment loss to average net assets ............... (1.83)%+
</TABLE>
- ----------
* Commencement of operations.
** The Manager and Subadviser, at their discretion, waived a portion of their
fees and, in some cases, the Subadviser reimbursed certain expenses for the
periods presented.
+ Annualized.
++ For the year ended October 31, 1993.
+++ For the year ended October 31, 1996.
See Notes to Financial Statements.
-----
75
<PAGE>
================================================================================
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the International Fund, the Emerging Markets
Growth Fund, the Global Growth Opportunities Fund, the Global Smaller Companies
Fund, and the Global Technology Fund Series of Seligman Henderson Global Fund
Series, Inc. as of October 31, 1997, the related statements of operations for
the year then ended and of changes in net assets (1) for the year 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 October
31, 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 principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Henderson Global Fund Series, Inc. as of October 31, 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
December 5, 1997
- --------------------------------------------------------------------------------
- -----
76
<PAGE>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements:
Part A - Financial Highlights for the Seligman Henderson
International Fund: Class A shares from April 7, 1992
(commencement of operations) to October 31, 1997.
Class B shares from April 22, 1996 (commencement of
operations) to October 31, 1997.
Class D shares from September 21, 1993 (commencement of
operations) to October 31, 1997.
Financial Highlights for the Seligman Henderson Emerging
Markets Growth Fund:
Class A, Class B and Class D shares from May 28, 1996
(commencement of operations) to October 31, 1997.
Financial Highlights for the Seligman Henderson Global
Growth Opportunities Fund:
Class A and Class D shares from November 1, 1995
(commencement of operations) to October 31, 1997.
Class B shares from April 22, 1996 (commencement of
operations) to October 31, 1997. Financial Highlights for
the Seligman Henderson Global Smaller Companies Fund:
Class A shares from September 9, 1992 (commencement of
operations) to October 31, 1997.
Class B shares from April 22, 1996 (commencement of
operations) to October 31, 1997.
Class D shares from May 3, 1993 (commencement of operations)
to October 31, 1997.
Financial Highlights for the Seligman Henderson Global
Technology Fund:
Class A and Class D shares from May 23, 1994 (commencement
of operations) to October 31, 1997.
Class B shares from April 22, 1996 (commencement of
operations) to October 31, 1997.
Part B - Required financial statements for each Series of the
Registrant, which are included in the Registrant's Annual
Report to Shareholders dated October 31, 1997, are
incorporated by reference in the Statement of Additional
Information. These financial statements are: Portfolios of
Investments as of October 31, 1997; Statements of Assets and
Liabilities as of October 31, 1997; Statements of Operations
for the year ended October 31, 1997; Statements of Changes
in Net Assets for the years ended October 31, 1997 and 1996
for the Seligman Henderson International Fund, the Seligman
Henderson Global Smaller Companies Fund, Seligman Henderson
Global Technology Fund, and the Seligman Henderson Global
Growth Opportunities Fund; and for the year ended October
31, 1997 and for the period May 28, 1996 (commencement of
operations) to October 31, 1996 for the Seligman Emerging
Markets Growth Fund; Notes to Financial Statements;
Financial Highlights from commencement of operations of each
of these five Series through October 31, 1997; Report of
Independent Auditors.
(b) Exhibits: Exhibits listed below have been previously filed
and are incorporated by reference herein, except Exhibits
marked with an asterisk (*) which are attached hereto.
(1) Form of Articles of Amendment and Restatement of Articles of
Incorporation of Registrant are incorporated by reference to
Registrant's Post-Effective Amendment No. 23, filed on February 27,
1997.
(2) Amended and Restated By-Laws of Registrant are incorporated by
reference to Registrant's Post-Effective Amendment No. 23, filed on
February 27, 1997.
(3) Not applicable.
(4) Specimen Stock Certificates for Class A and Class D Shares with
respect to Seligman Henderson International Fund are incorporated by
reference to Exhibit 4 of the Registrant's Post-Effective Amendment
No. 6, filed on April 23, 1993 and Post-Effective Amendment No. 8,
filed on September 21, 1993. Specimen Stock Certificate for Class B
Shares with respect to Seligman Henderson International Fund is
incorporated by reference to Form SE filed on April 16, 1996.
<PAGE>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION (CONTINUED)
(4a) Specimen Stock Certificates for Class A and Class D Shares with
respect to Seligman Henderson Global Smaller Companies Fund
(formerly, Seligman Henderson Global Emerging Companies Fund) are
incorporated by reference to Exhibit 4a to the Registrant's
Post-Effective Amendment No. 10, filed on August 10, 1992. Specimen
Stock Certificate for Class B Shares with respect to Seligman
Henderson Global Emerging Companies Fund is incorporated by reference
to Form SE filed on April 16, 1996.
(4b) Specimen Stock Certificates for Class A and Class D Shares with
respect to Seligman Henderson Global Technology Fund are incorporated
by reference to Exhibit 4b of the Registrant's Post-Effective
Amendment No. 11, filed on May 10, 1994. Specimen Stock Certificate
for Class B Shares with respect to Seligman Henderson Global
Technology Fund is incorporated by reference to Form SE filed on
April 16, 1996.
(4c) Specimen Stock Certificates for Class A and Class D Shares with
respect to Seligman Henderson Global Growth Opportunities Fund are
incorporated by reference to Form SE, filed on behalf of the
Registrant on October 30, 1995. Specimen Stock Certificate for Class
B Shares with respect to Seligman Henderson Global Growth
Opportunities Fund is incorporated by reference to Form SE filed on
April 16, 1996.
(4d) Specimen Stock Certificates for Class A, Class B and Class D Shares
with respect to Seligman Henderson Emerging Markets Growth Fund are
incorporated by reference to Form SE, filed on behalf of the
Registrant on May 15, 1996.
(4e) Additional rights of security holders are set forth in Article FIFTH
and SEVENTH of the Registrant's Articles of Incorporation and
Articles I and IV of Registrant's By-Laws which are filed as Exhibit
1 and Exhibit 2, respectively, of this Post-Effective Amendment No.
23 to the Registrant's Registration Statement on Form N-1A.
(5a) Revised Management Agreement between the Registrant and J. & W.
Seligman & Co. Incorporated is incorporated by reference to
Registrant's Post-Effective Amendment No. 21, filed May 20, 1996.
(5b) Subadvisory Agreement between the Manager and the Subadviser with
respect to the Fund, the Seligman Henderson International Fund, the
Seligman Henderson Global Smaller Companies Fund, the Seligman
Henderson Global Technology Fund and the Seligman Henderson Global
Growth Opportunities Fund is incorporated by reference to the
Registrant's Post-Effective Amendment No. 17, filed on October 27,
1995.
(5c) Subadvisory Agreement between the Manager and the Subadviser with
respect to the Seligman Henderson Emerging Markets Growth Fund is
incorporated by reference to Registrant's Post-Effective Amendment
No. 21, filed on May 20, 1996.
(6) Distributing Agreement between the Registrant and Seligman Financial
Services, Inc. is incorporated by reference to Exhibit 6 of the
Registrant's Post-Effective Amendment No. 17, filed October 27, 1995.
(6a) Sales Agreement between Seligman Financial Services, Inc. and Dealers
is incorporated by reference to the Registrant's Post-Effective
Amendment No. 20, filed on April 19, 1996.
(6b) Form of Sales Agreement between Seligman Financial Services, Inc. and
Dean Witter Reynolds, Inc. (Incorporated by reference to Exhibit 6b
of Registration Statement No. 2-33566, Post-Effective Amendment No.
53, filed on April 28, 1997.)
(6c) Form of Sales Agreement between Seligman Financial Services, Inc. and
Dean Witter Reynolds, Inc. with respect to certain Chilean
institutional investors. (Incorporated by reference to Exhibit 6c of
Registration Statement No. 2-33566, Post-Effective Amendment No. 53,
filed on April 28, 1997.)
(6d) Form of Dealer Agreement between Seligman Financial Services, Inc.
and Smith Barney Inc. (Incorporated by reference to Exhibit 6d of
Registration Statement No. 2-33566, Post-Effective Amendment No. 53,
filed on April 28, 1997.)
(7) Matched Accumulation Plan of J. & W. Seligman & Co. Incorporated is
incorporated by reference to Exhibit 7 of Registration Statement No.
2-92487, Post-Effective Amendment No. 21, filed on January 29, 1997.
<PAGE>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION (CONTINUED)
(7a) Deferred Compensation Plan for Directors of Seligman Group of Funds
is incorporated by reference to Exhibit 7a of Registration Statement
No. 2-92487, Post-Effective Amendment No. 21, filed on January 29,
1997.
(8) Custody Agreement, dated May 1, 1996, between Registrant and Morgan
Stanley Trust Company is incorporated by reference to Exhibit 8 of
the Registrant's Post-Effective Amendment No. 22 filed on November
20, 1996.
(9) Recordkeeping Agreement between Registrant and Investors Fiduciary
Trust Company is incorporated by reference to Registrant's
Post-Effective Amendment No. 23, filed on February 27, 1997.
(10) Opinion and Consent of Counsel is incorporated by reference to
Registrant's Post-Effective Amendment No. 23, filed on February 27,
1997.
(11) Consent of Independent Auditors.*
(12) Not applicable.
(13) Form of Purchase Agreement for Initial Capital between Registrant's
Seligman Henderson International Fund's Class A and Class D Shares
and J. & W. Seligman & Co. Incorporated is incorporated by reference
to Registrant's Post-Effective Amendment No. 23 filed on February 27,
1997. Form of Purchase Agreement for Initial Capital between
Registrant's Seligman Henderson International Fund's Class B shares
and J. & W. Seligman & Co. Incorporated is incorporated by reference
to Exhibit 13a of the Registrant's Post-Effective Amendment No. 20,
filed on April 19, 1996.
(13a) Form of Purchase Agreement for Initial Capital between Registrant's
Seligman Henderson Global Smaller Companies Fund's Class D Shares and
J. & W. Seligman & Co. Incorporated is incorporated by reference to
Registrant's Post-Effective Amendment No. 23 filed on February 27,
1997. Form of Purchase Agreement for Initial Capital between
Registrant's Seligman Henderson Global Smaller Companies Fund's Class
B shares and J. & W. Seligman & Co. Incorporated is incorporated by
reference to Exhibit 13b of the Registrant's Post-Effective Amendment
No. 20, filed on April 19, 1996.
(13b) Form of Purchase Agreement for Initial Capital between Registrant's
Seligman Henderson Global Technology Fund's Class A and D Shares and
J. & W. Seligman & Co. Incorporated is incorporated by reference to
Registrant's Post-Effective Amendment No. 23 filed on February 27,
1997. Form of Purchase Agreement for Initial Capital between
Registrant's Seligman Henderson Global Technology Fund's Class B
shares and J. & W. Seligman & Co. Incorporated is incorporated by
reference to Exhibit 13c of the Registrant's Post-Effective Amendment
No. 20, filed on April 19, 1996.
(13c) Form of Purchase Agreement for Initial Capital between Registrant's
Seligman Henderson Global Growth Opportunities Fund's Class B shares
and J. & W. Seligman & Co. Incorporated is incorporated by reference
to Exhibit 13d of the Registrant's Post-Effective Amendment No. 20,
filed April 19, 1996.
(13d) Copy of Purchase Agreement for Initial Capital between Registrant's
Seligman Henderson Emerging Markets Growth Fund Class A, Class B and
Class D Shares and J. & W. Seligman & Co. Incorporated is
incorporated by reference to Registrant's Post-Effective Amendment
No. 21, filed on May 20, 1996.
(14) The Seligman IRA Plan Agreement is incorporated by reference to
Exhibit 14 of Registration Statement No. 333-20621, Pre-Effective
Amendment No. 2, filed on April 17, 1997.
(14a) The Seligman Simple IRA Plan Set-Up Kit is incorporated by reference
to Exhibit 14 of Registration Statement No. 333-20621, Pre-Effective
Amendment No. 2, filed on April 17, 1997.
(14b) The Seligman Simple IRA Plan Agreement is incorporated by reference
to Exhibit 14 of Registration Statement No. 333-20621, Pre-Effective
Amendment No. 2, filed on April 17, 1997.
<PAGE>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION (CONTINUED)
(15) Administration, Shareholder Services and Distribution Plans for each
of the Seligman Henderson International Fund, the Seligman Henderson
Global Smaller Companies Fund, the Seligman Henderson Global
Technology Fund and the Seligman Henderson Global Growth
Opportunities Fund and amended form of Administration, Shareholder
Services and Distribution Agreement of the Registrant is incorporated
by reference to Exhibit 15 of the Registrant's Post-Effective
Amendment No. 20, filed April 19, 1996.
(15a) Administration, Shareholder Services and Distribution Plan of
Seligman Henderson Emerging Markets Growth Fund is incorporated by
reference to Registrant's Post-Effective Amendment No. 21, filed on
May 20, 1996.
(16) Schedule for Computation of each Performance Quotation provided in
Registration Statement in response to Item 22 is incorporated by
reference to Registrant's Post-Effective Amendment No. 23, filed on
February 27, 1997.
(17) Financial Data Schedules meeting the requirements of Rule 483 under
the Securities Act of 1933.*
(18) Copy of Multiclass Plan entered into by Registrant pursuant to Rule
18f-3 under the Investment Company Act of 1940 is incorporated by
reference to Exhibit 18 of Registrant's Post-Effective Amendment No.
19 filed on March 5, 1996.
Other Exhibits Powers of Attorney
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT - None
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
<TABLE>
<CAPTION>
(1) (2)
Number of Record
Title of Class Holders as of February 2, 1998
-------------- ------------------------------
<S> <C> <C>
Seligman Henderson Class A Common Stock (Par Value $.001) 2,648
International Fund Class B Common Stock (Par Value $.001) 622
Class D Common Stock (Par Value $.001) 2,548
Seligman Henderson Class A Common Stock (Par Value $.001) 4,574
Emerging Markets Growth Fund Class B Common Stock (Par Value $.001) 2,278
Class D Common Stock (Par Value $.001) 2,246
Seligman Henderson Global Class A Common Stock (Par Value $.001) 6,576
Growth Opportunities Fund Class B Common Stock (Par Value $.001) 1,295
Class D Common Stock (Par Value $.001) 3,055
Seligman Henderson Global Class A Common Stock (Par Value $.001) 28,463
Smaller Companies Fund Class B Common Stock (Par Value $.001) 16,740
Class D Common Stock (Par Value $.001) 17,271
Seligman Henderson Global Class A Common Stock (Par Value $.001) 49,883
Technology Fund Class B Common Stock (Par Value $.001) 4,487
Class D Common Stock (Par Value $.001) 16,802
</TABLE>
<PAGE>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION (CONTINUED)
ITEM 27. INDEMNIFICATION
Reference is made to the provisions of Articles Twelfth and
Thirteenth of Registrant's Amended and Restated Articles of
Incorporation filed as Exhibit 24(b)(1) and Article VII of
Registrant's Amended and Restated By-laws filed as Exhibit 24(b)(2)
to Registrant's Post-Effective Amendment No. 23 to the Registration
Statement.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised by the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of
expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER - The Manager
also serves as investment manager to seventeen other associated
investment companies. They are Seligman Capital Fund, Inc., Seligman
Cash Management Fund, Inc., Seligman Common Stock Fund, Inc.,
Seligman Communications and Information Fund, Inc., Seligman Frontier
Fund, Inc., Seligman Growth Fund, Inc., Seligman High Income Fund
Series, Seligman Income Fund, Inc., Seligman Municipal Fund Series,
Inc., Seligman Municipal Series Trust, Seligman New Jersey Municipal
Fund, Inc., Seligman Pennsylvania Municipal Fund Series, Seligman
Portfolios, Inc., Seligman Quality Municipal Fund, Inc., Seligman
Select Municipal Fund, Inc., Seligman Value Fund Series, Inc. and
Tri-Continental Corporation.
The Subadviser also serves as subadviser to nine other associated
investment companies. They are Seligman Capital Fund, Inc., Seligman
Common Stock Fund, Inc., Seligman Communications and Information
Fund, Inc., Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc.,
Seligman Income Fund, Inc., the Global Portfolio, the Global Smaller
Companies Portfolio, the Global Technology Portfolio and the Global
Growth Opportunities Portfolio of Seligman Portfolios, Inc., Seligman
Value Fund Series, Inc. and Tri-Continental Corporation.
The Manager and Subadviser each have an investment advisory service
division which provides investment management or advice to private
clients. The list required by this Item 28 of officers and directors
of the Manager and the Subadviser, respectively, together with
information as to any other business, profession, vocation or
employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to
Schedules A and D of Form ADV, filed by the Manager and the
Subadviser, respectively, pursuant to the Investment Advisers Act of
1940 (SEC File No. 801-15798 and SEC File No. 801-40670) on June 3,
1997.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) The names of each investment company (other than the Registrant)
for which Registrant's principal underwriter currently
distributing securities of the Registrant also acts as a
principal underwriter, depositor or investment adviser follow:
Seligman Capital Fund, Inc., Seligman Cash Management Fund,
Inc., Seligman Common Stock Fund, Inc., Seligman Communications
and Information Fund, Inc., Seligman Frontier Fund, Inc.,
Seligman Growth Fund, Inc., Seligman High Income Fund Series,
Seligman Income Fund, Inc., Seligman Municipal Fund Series,
Inc., Seligman Municipal Series Trust, Seligman New Jersey
Municipal Fund, Inc., Seligman Pennsylvania Municipal Fund
Series, Seligman Portfolios, Inc. and Seligman Value Fund
Series, Inc.
<PAGE>
File No. 33-44186
811-6485
(b) Name of each director, officer or partner of Registrant's
principal underwriter named in response to Item 21:
<TABLE>
<CAPTION>
SELIGMAN FINANCIAL SERVICES, INC.
AS OF JANUARY 31, 1998
----------------------
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
---------------- ---------------- ---------------
<S> <C> <C>
William C. Morris* Director Chairman of the Board
and Chief Executive
Officer
Brian T. Zino* Director Director and President
Ronald T. Schroeder* Director None
Fred E. Brown* Director Director Emeritus
William H. Hazen* Director None
Thomas G. Moles* Director None
David F. Stein* Director None
Stephen J. Hodgdon* President None
Charles W. Kadlec* Chief Investment Strategist None
Lawrence P. Vogel* Senior Vice President, Finance Vice President
Ed Lynch* Senior Vice President, Director None
of Marketing
Mark R. Gordon* Senior Vice President, National None
Sales Manager
Gerald I. Cetrulo, III Senior Vice President of Sales None
140 West Parkway
Pompton Plains, NJ 07444
Bradley W. Larson Senior Vice President of Sales None
367 Bryan Drive
Alamo, CA 94526
Michelle L. McCann* Vice President, Manager, Retirement None
Plans Marketing
Michael R. Sanders* Vice President, Product Manager None
Managed Money Services
Charles L. von Breitenbach, II* Vice President, Product Manager None
Managed Money Services
Robert T. Hausler* Global Mutual Funds, None
Product Management
Marsha E. Jacoby* Vice President, National Accounts None
Manager
William W. Johnson* Vice President, Order Desk None
Tracy A. Salomon* Vice President, Retirement None
Marketing Manager
Helen Simon* Vice President, Sales None
Administration Manager
J. Brereton Young* Vice President, Mutual Funds None
Product Manager
Peter J. Campagna Vice President, Regional Retirement None
1130 Green Meadow Court Plans Manager
Acworth, GA 30102
Charles E. Wenzel Vice President, Regional Retirement None
703 Greenwood Road Plans Manager
Wilmington, DE 19807
James R. Besher Regional Vice President None
14000 Margaux Lane
Town & Country, MO 63017
</TABLE>
<PAGE>
File No. 33-44186
811-6485
<TABLE>
<CAPTION>
PART C. OTHER INFORMATION (continued)
SELIGMAN FINANCIAL SERVICES, INC.
AS OF JANUARY 31, 1998
----------------------
(1) (2) (3)
Name And Principal Positions And Offices Positions And Offices
Business Address With Underwriter With Registrant
---------------- ---------------- ---------------
<S> <C> <C>
Richard B. Callaghan Regional Vice President None
7821 Dakota Lane
Orland Park. IL 60462
Bradford C. Davis Regional Vice President None
241 110th Avenue SE
Bellevue, WA 98004
Christopher J. Derry Regional Vice President None
2380 Mt. Lebanon Church Road
Alvaton, KY 42122
Kenneth Dougherty Regional Vice President None
8640 Finlarig Drive
Dublin, OH 43017
Andrew Draluck Regional Vice President None
4032 E. Williams Drive
Phoenix, AZ 85024
Jonathan G. Evans Senior Vice President of Sales None
222 Fairmont Way
Ft. Lauderdale, FL 33326
Edward S. Finocchiaro Regional Vice President None
120 Screenhouse Lane
Duxbury, MA 02332
Michael C. Forgea Regional Vice President None
32 W. Anapamu Street #186
Santa Barbara, CA 93101
David Gardner Regional Vice President None
2403 Cayenne Drive
McKinney, TX 75070
Carla A. Goehring Regional Vice President None
11426 Long Pine
Houston, TX 77077
Judith L. Lyon Regional Vice President None
7105 Harbor Landing
Alpharetta, CA 30005
David L. Meyncke Regional Vice President None
4957 Cross Pointe Drive
Oldsmar, FL 34677-5212
Timothy O'Connell Regional Vice President None
11908 Acacia Glen Court
San Diego, CA 92128
Thomas Parnell Regional Vice President None
1575 Edgecomb Road
St. Paul, MN 55116
Juliana Perkins Regional Vice President None
2348 Adrian Street
Newbury Park, CA 91320
David Petzke Regional Vice President None
4016 Saint Lucia Street
Boulder, CO 80301
Nicholas Roberts Regional Vice President None
200 Broad Street, Apt. 2225
Stamford, CT 06901
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
File No. 33-44186
811-6485
PART C. OTHER INFORMATION (continued)
SELIGMAN FINANCIAL SERVICES, INC.
AS OF JANUARY 31, 1998
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
---------------- ---------------- ---------------
<S> <C> <C> <C>
Diane H. Snowden Regional Vice President None
11 Thackery Lane
Cherry Hill, NJ 08003
Bruce M. Tuckey Senior Vice President of Sales None
41644 Chathman Drive
Novi, MI 48375
Andrew S. Veasey Senior Vice President of Sales None
14 Woodside Drive
Rumson, NJ 07760
Steve Wilson Regional Vice President None
83 Kaydeross Park
Saratoga Springs, NY 12866
Kelli A. Wirth-Dumser Regional Vice President None
7121 Jardiniere Court
Charlotte, NC 28226
Frank J. Nasta* Secretary Secretary
Aurelia Lacsamana* Treasurer None
Gail S. Cushing* Assistant Vice President, National None
Accounts Manager
Jeffrey S. Dean* Assistant Vice President, Marketing None
Sandra Floris* Assistant Vice President, Order Desk None
Keith Landry* Assistant Vice President, Order Desk None
Joseph M. McGill* Assistant Vice President and None
Compliance Officer
Jack Talvy Assistant Vice President, None
Internal Marketing Service Manager
Joyce Peress* Assistant Secretary None
</TABLE>
* The principal business address of each of these directors and/or officers is
100 Park Avenue, New York, NY 10017.
(c) Not applicable.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
(1) Morgan Stanley Trust Company
1 Pierrepont Plaza
Brooklyn New York 11201;
(2) Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, Missouri 64105; and
(3) Seligman Data Corp.
100 Park Avenue
New York, NY 10017
<PAGE>
PART C. OTHER INFORMATION (continued)
ITEM 31. MANAGEMENT SERVICES - Seligman Data Corp., the Registrant's
shareholder service agent, has an agreement with First Data
Investor Services Group ("FDISG") pursuant to which FDISG
provides a data processing system for certain shareholder
accounting and recordkeeping functions performed by Seligman
Data Corp. For the fiscal periods ended October 31, 1997, 1996
and 1995, the approximate cost of these services was:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Seligman Henderson International Fund $ 32,000 $ 27,000 $ 17,800
Seligman Henderson Emerging Markets Growth Fund 42,000 6,600* --
Seligman Henderson Global Growth Opportunities Fund 58,100 38,700 6,000
Seligman Henderson Global Smaller Companies Fund 312,800 140,600 37,800
Seligman Henderson Global Technology Fund 382,800 346,700 108,100
</TABLE>
* For the period May 28, 1996 (commencement of operations) to
October 31, 1996.
ITEM 32. UNDERTAKINGS - The Registrant undertakes (1) to furnish a copy
of the Registrant's latest annual report, upon request and
without charge, to every person to whom a prospectus is
delivered and (2) if requested to do so by the holders of at
least ten percent of its outstanding shares, to call a meeting
of shareholders for the purpose of voting upon the removal of
a director or directors and to assist in communications with
other shareholders as required by Section 16(c) of the
Investment Company Act of 1940.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Post-Effective Amendment pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Post-Effective Amendment No. 25 to its Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of New
York, State of New York, on the 25TH day of February, 1998.
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
By: /s/ WILLIAM C. MORRIS
-------------------------------
William C. Morris, Chairman
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, this Post-Effective Amendment No. 25 to its
Registration Statement has been signed below by the following persons in the
capacities indicated on February 25, 1998.
SIGNATURE TITLE
/s/ WILLIAM C. MORRIS Chairman of the Board (Principal
- --------------------------------- executive officer) and Director
William C. Morris*
/s/ BRIAN T. ZINO President and Director
- ---------------------------------
Brian T. Zino
/s/ THOMAS G. ROSE Treasurer (Principal financial and
- --------------------------------- and accounting officer)
Thomas G. Rose
John R. Galvin, Director )
Alice S. Ilchman, Director )
Frank A. McPherson, Director )
John E. Merow, Director ) /s/ BRIAN T. ZINO
Betsy S. Michel, Director ) ---------------------------
James C. Pitney, Director ) Brian T. Zino, Attorney-in-fact*
James Q. Riordan, Director )
Richard R. Schmaltz, Director )
Robert L. Shafer, Director )
James N. Whitson, Director )
<PAGE>
SELIGMAN HENDERSON GLOBAL FUND SERIES, INC.
POST-EFFECTIVE AMENDMENT NO. 25
EXHIBIT INDEX
FORM N-1A ITEM NO. DESCRIPTION
24(b)(11) Opinion and Consent of Independent Auditors
24(b)(17) Financial Data Schedules
Other Exhibits Powers of Attorney
Consent of Independent Auditors
CONSENT OF INDEPENDENT AUDITORS
Seligman Henderson Global Fund Series, Inc.:
We consent to the use in Post-Effective Amendment No. 25 to Registration
Statement No. 33-44186 of our report dated December 5, 1997, appearing in the
Annual Report to Shareholders for the year ended October 31, 1997, incorporated
by reference in the Statement of Additional Information, and to the reference to
us under the caption "Financial Highlights" in the Prospectus, which is also
part of such Registration Statement.
DELOITTE & TOUCHE LLP
New York, New York
February 23, 1998
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ John R. Galvin (L.S.)
-----------------------------
John R. Galvin
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, her attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in her name and stead, in her capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ Alice S. Ilchman (L.S.)
-----------------------------
Alice S. Ilchman
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/Frank A. McPherson (L.S.)
-----------------------------
Frank A. McPherson
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ John E. Merow (L.S.)
----------------------------
John E. Merow
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, her attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in her name and stead, in her capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ Betsy S. Michel (L.S.)
-----------------------------
Betsy S. Michel
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ William C. Morris (L.S.)
-----------------------------
William C. Morris
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 20th day of November, 1997.
/s/ James C. Pitney (L.S.)
-----------------------------
James C. Pitney
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/James Q. Riordan (L.S.)
-----------------------------
James Q. Riordan
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ Richard R. Schmaltz (L.S.)
---------------------------------
Richard R. Schmaltz
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ Robert L. Shafer (L.S.)
-------------------------------
Robert L. Shafer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ James N. Whitson (L.S.)
------------------------------
James N. Whitson
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of SELIGMAN
HENDERSON GLOBAL FUND SERIES, INC., a Maryland corporation, which proposes to
file with the Securities and Exchange Commission an Amendment to Registration
Statement on Form N-1A and further amendments thereto, as necessary, under the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
hereby constitutes and appoints William C. Morris and Brian T. Zino, and each of
them individually, his attorneys-in-fact and agent, with full power of
substitution and resubstitution, for in his name and stead, in his capacity as
such director, to sign and file such Amendment to Registration Statement or
further amendments thereto, and any and all applications or other documents to
be filed with the Securities and Exchange Commission pertaining thereto, with
full power and authority to do and perform all acts and things requisite and
necessary to be done on the premises.
Executed this 18th day of September, 1997.
/s/ Brian T. Zino (L.S.)
---------------------------
Brian T. Zino
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON INTERNATIONAL FUND CLASS A
<NUMBER>011
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 80690
<INVESTMENTS-AT-VALUE> 90160
<RECEIVABLES> 2438
<ASSETS-OTHER> 1706
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 94304
<PAYABLE-FOR-SECURITIES> 405
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 465
<TOTAL-LIABILITIES> 870
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 79542
<SHARES-COMMON-STOCK> 2572<F1>
<SHARES-COMMON-PRIOR> 2970<F1>
<ACCUMULATED-NII-CURRENT> (12)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4298
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9606
<NET-ASSETS> 46107<F1>
<DIVIDEND-INCOME> 715<F1>
<INTEREST-INCOME> 48<F1>
<OTHER-INCOME> (177)<F1>
<EXPENSES-NET> (881)<F1>
<NET-INVESTMENT-INCOME> (295)<F1>
<REALIZED-GAINS-CURRENT> 6612
<APPREC-INCREASE-CURRENT> 3674
<NET-CHANGE-FROM-OPS> 9295
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2600)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2794<F1>
<NUMBER-OF-SHARES-REDEEMED> (3304)<F1>
<SHARES-REINVESTED> 112<F1>
<NET-CHANGE-IN-ASSETS> (8324)
<ACCUMULATED-NII-PRIOR> (11)
<ACCUMULATED-GAINS-PRIOR> 3944
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 493<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 882<F1>
<AVERAGE-NET-ASSETS> 49276<F1>
<PER-SHARE-NAV-BEGIN> 17.17<F1>
<PER-SHARE-NII> (.04)<F1>
<PER-SHARE-GAIN-APPREC> 1.68<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.89)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.92<F1>
<EXPENSE-RATIO> 1.78<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON INTERNATIONAL FUND CLASS B
<NUMBER> 012
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 80690
<INVESTMENTS-AT-VALUE> 90160
<RECEIVABLES> 2438
<ASSETS-OTHER> 1706
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 94304
<PAYABLE-FOR-SECURITIES> 405
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 465
<TOTAL-LIABILITIES> 870
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 79542
<SHARES-COMMON-STOCK> 367<F1>
<SHARES-COMMON-PRIOR> 170<F1>
<ACCUMULATED-NII-CURRENT> (12)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4298
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9606
<NET-ASSETS> 6350<F1>
<DIVIDEND-INCOME> 74<F1>
<INTEREST-INCOME> 2<F1>
<OTHER-INCOME> (17)<F1>
<EXPENSES-NET> (126)<F1>
<NET-INVESTMENT-INCOME> (67)<F1>
<REALIZED-GAINS-CURRENT> 6612
<APPREC-INCREASE-CURRENT> 3674
<NET-CHANGE-FROM-OPS> 9295
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (155)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 249<F1>
<NUMBER-OF-SHARES-REDEEMED> (61)<F1>
<SHARES-REINVESTED> 9<F1>
<NET-CHANGE-IN-ASSETS> (8324)
<ACCUMULATED-NII-PRIOR> (11)
<ACCUMULATED-GAINS-PRIOR> 3944
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 126<F1>
<AVERAGE-NET-ASSETS> 4890<F1>
<PER-SHARE-NAV-BEGIN> 16.74<F1>
<PER-SHARE-NII> (.18)<F1>
<PER-SHARE-GAIN-APPREC> 1.63<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.89)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.30<F1>
<EXPENSE-RATIO> 2.58<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON INTERNATIONAL FUND CLASS D
<NUMBER> 014
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 80690
<INVESTMENTS-AT-VALUE> 90160
<RECEIVABLES> 2438
<ASSETS-OTHER> 1706
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 94304
<PAYABLE-FOR-SECURITIES> 405
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 465
<TOTAL-LIABILITIES> 870
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 79542
<SHARES-COMMON-STOCK> 2368<F1>
<SHARES-COMMON-PRIOR> 2863<F1>
<ACCUMULATED-NII-CURRENT> (12)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4298
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9606
<NET-ASSETS> 40977<F1>
<DIVIDEND-INCOME> 645<F1>
<INTEREST-INCOME> 54<F1>
<OTHER-INCOME> (162)<F1>
<EXPENSES-NET> (1166)<F1>
<NET-INVESTMENT-INCOME> (629)<F1>
<REALIZED-GAINS-CURRENT> 6612
<APPREC-INCREASE-CURRENT> 3674
<NET-CHANGE-FROM-OPS> 9295
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2513)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1406<F1>
<NUMBER-OF-SHARES-REDEEMED> (2039)<F1>
<SHARES-REINVESTED> 138<F1>
<NET-CHANGE-IN-ASSETS> (8324)
<ACCUMULATED-NII-PRIOR> (11)
<ACCUMULATED-GAINS-PRIOR> 3944
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 451<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1166<F1>
<AVERAGE-NET-ASSETS> 45158<F1>
<PER-SHARE-NAV-BEGIN> 16.74<F1>
<PER-SHARE-NII> (.18)<F1>
<PER-SHARE-GAIN-APPREC> 1.63<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.89)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.30<F1>
<EXPENSE-RATIO> 2.58<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND CLASS A
<NUMBER> 051
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 86156
<INVESTMENTS-AT-VALUE> 85995
<RECEIVABLES> 5885
<ASSETS-OTHER> 14799
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 106679
<PAYABLE-FOR-SECURITIES> 1520
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1020
<TOTAL-LIABILITIES> 2540
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107986
<SHARES-COMMON-STOCK> 6002<F1>
<SHARES-COMMON-PRIOR> 2931<F1>
<ACCUMULATED-NII-CURRENT> (1)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3622)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (224)
<NET-ASSETS> 44061<F1>
<DIVIDEND-INCOME> 479<F1>
<INTEREST-INCOME> 181<F1>
<OTHER-INCOME> (138)<F1>
<EXPENSES-NET> (875)<F1>
<NET-INVESTMENT-INCOME> (353)<F1>
<REALIZED-GAINS-CURRENT> (2712)
<APPREC-INCREASE-CURRENT> 682
<NET-CHANGE-FROM-OPS> (3229)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7051<F1>
<NUMBER-OF-SHARES-REDEEMED> (3980)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 60069
<ACCUMULATED-NII-PRIOR> (1)
<ACCUMULATED-GAINS-PRIOR> (910)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 482<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 875<F1>
<AVERAGE-NET-ASSETS> 38623<F1>
<PER-SHARE-NAV-BEGIN> 6.78<F1>
<PER-SHARE-NII> (.05)<F1>
<PER-SHARE-GAIN-APPREC> .61<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.34<F1>
<EXPENSE-RATIO> 2.27<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND CLASS B
<NUMBER> 052
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 86156
<INVESTMENTS-AT-VALUE> 85995
<RECEIVABLES> 5885
<ASSETS-OTHER> 14799
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 106679
<PAYABLE-FOR-SECURITIES> 1520
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1020
<TOTAL-LIABILITIES> 2540
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107986
<SHARES-COMMON-STOCK> 3966<F1>
<SHARES-COMMON-PRIOR> 1559<F1>
<ACCUMULATED-NII-CURRENT> (1)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3622)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (224)
<NET-ASSETS> 28819<F1>
<DIVIDEND-INCOME> 285<F1>
<INTEREST-INCOME> 108<F1>
<OTHER-INCOME> (82)<F1>
<EXPENSES-NET> (698)<F1>
<NET-INVESTMENT-INCOME> (387)<F1>
<REALIZED-GAINS-CURRENT> (2712)
<APPREC-INCREASE-CURRENT> 682
<NET-CHANGE-FROM-OPS> (3229)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3004<F1>
<NUMBER-OF-SHARES-REDEEMED> (597)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 60069
<ACCUMULATED-NII-PRIOR> (1)
<ACCUMULATED-GAINS-PRIOR> (910)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 698<F1>
<AVERAGE-NET-ASSETS> 22958<F1>
<PER-SHARE-NAV-BEGIN> 6.76<F1>
<PER-SHARE-NII> (.11)<F1>
<PER-SHARE-GAIN-APPREC> .62<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.27<F1>
<EXPENSE-RATIO> 3.04<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON EMERGING MARKETS GROWTH FUND CLASS D
<NUMBER> 054
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 86156
<INVESTMENTS-AT-VALUE> 85995
<RECEIVABLES> 5885
<ASSETS-OTHER> 14799
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 106679
<PAYABLE-FOR-SECURITIES> 1520
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1020
<TOTAL-LIABILITIES> 2540
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107986
<SHARES-COMMON-STOCK> 4302<F1>
<SHARES-COMMON-PRIOR> 2021<F1>
<ACCUMULATED-NII-CURRENT> (1)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3622)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (224)
<NET-ASSETS> 31259<F1>
<DIVIDEND-INCOME> 340<F1>
<INTEREST-INCOME> 128<F1>
<OTHER-INCOME> (97)<F1>
<EXPENSES-NET> (830)<F1>
<NET-INVESTMENT-INCOME> (459)<F1>
<REALIZED-GAINS-CURRENT> (2712)
<APPREC-INCREASE-CURRENT> 682
<NET-CHANGE-FROM-OPS> (3229)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4238<F1>
<NUMBER-OF-SHARES-REDEEMED> (1957)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 60069
<ACCUMULATED-NII-PRIOR> (1)
<ACCUMULATED-GAINS-PRIOR> (910)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 341<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 830<F1>
<AVERAGE-NET-ASSETS> 27244<F1>
<PER-SHARE-NAV-BEGIN> 6.76<F1>
<PER-SHARE-NII> (.11)<F1>
<PER-SHARE-GAIN-APPREC> .62<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.27<F1>
<EXPENSE-RATIO> 3.04<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND CLASS A
<NUMBER> 041
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 155631
<INVESTMENTS-AT-VALUE> 185548
<RECEIVABLES> 5849
<ASSETS-OTHER> 7601
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 198998
<PAYABLE-FOR-SECURITIES> 5160
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1167
<TOTAL-LIABILITIES> 6327
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 155568
<SHARES-COMMON-STOCK> 11847<F1>
<SHARES-COMMON-PRIOR> 13306<F1>
<ACCUMULATED-NII-CURRENT> (3)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7210
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29896
<NET-ASSETS> 109060<F1>
<DIVIDEND-INCOME> 1092<F1>
<INTEREST-INCOME> 153<F1>
<OTHER-INCOME> (156)<F1>
<EXPENSES-NET> (1912)<F1>
<NET-INVESTMENT-INCOME> (823)<F1>
<REALIZED-GAINS-CURRENT> 9450
<APPREC-INCREASE-CURRENT> 15679
<NET-CHANGE-FROM-OPS> 23154
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1925<F1>
<NUMBER-OF-SHARES-REDEEMED> (3384)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 22365
<ACCUMULATED-NII-PRIOR> (2)
<ACCUMULATED-GAINS-PRIOR> (266)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1128<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1912<F1>
<AVERAGE-NET-ASSETS> 112900<F1>
<PER-SHARE-NAV-BEGIN> 8.08<F1>
<PER-SHARE-NII> (.05)<F1>
<PER-SHARE-GAIN-APPREC> 1.17<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.20<F1>
<EXPENSE-RATIO> 1.69<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND CLASS B
<NUMBER> 042
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 155631
<INVESTMENTS-AT-VALUE> 185548
<RECEIVABLES> 5849
<ASSETS-OTHER> 7601
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 198998
<PAYABLE-FOR-SECURITIES> 5160
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1167
<TOTAL-LIABILITIES> 6327
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 155568
<SHARES-COMMON-STOCK> 2130<F1>
<SHARES-COMMON-PRIOR> 1154<F1>
<ACCUMULATED-NII-CURRENT> (3)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7210
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29896
<NET-ASSETS> 19311<F1>
<DIVIDEND-INCOME> 146<F1>
<INTEREST-INCOME> 23<F1>
<OTHER-INCOME> (21)<F1>
<EXPENSES-NET> (375)<F1>
<NET-INVESTMENT-INCOME> (227)<F1>
<REALIZED-GAINS-CURRENT> 9450
<APPREC-INCREASE-CURRENT> 15679
<NET-CHANGE-FROM-OPS> 23154
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1234<F1>
<NUMBER-OF-SHARES-REDEEMED> (258)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 22365
<ACCUMULATED-NII-PRIOR> (2)
<ACCUMULATED-GAINS-PRIOR> (266)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 153<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 373<F1>
<AVERAGE-NET-ASSETS> 15273<F1>
<PER-SHARE-NAV-BEGIN> 8.02<F1>
<PER-SHARE-NII> (.12)<F1>
<PER-SHARE-GAIN-APPREC> 1.16<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.06<F1>
<EXPENSE-RATIO> 2.45<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES FUND CLASS D
<NUMBER> 044
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 155631
<INVESTMENTS-AT-VALUE> 185548
<RECEIVABLES> 5849
<ASSETS-OTHER> 7601
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 198998
<PAYABLE-FOR-SECURITIES> 5160
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1167
<TOTAL-LIABILITIES> 6327
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 155568
<SHARES-COMMON-STOCK> 7093<F1>
<SHARES-COMMON-PRIOR> 6679<F1>
<ACCUMULATED-NII-CURRENT> (3)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7210
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29896
<NET-ASSETS> 64300<F1>
<DIVIDEND-INCOME> 599<F1>
<INTEREST-INCOME> 87<F1>
<OTHER-INCOME> (86)<F1>
<EXPENSES-NET> (1525)<F1>
<NET-INVESTMENT-INCOME> (925)<F1>
<REALIZED-GAINS-CURRENT> 9450
<APPREC-INCREASE-CURRENT> 15679
<NET-CHANGE-FROM-OPS> 23154
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2006<F1>
<NUMBER-OF-SHARES-REDEEMED> (1592)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 22365
<ACCUMULATED-NII-PRIOR> (2)
<ACCUMULATED-GAINS-PRIOR> (266)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 622<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1525<F1>
<AVERAGE-NET-ASSETS> 62165<F1>
<PER-SHARE-NAV-BEGIN> 8.02<F1>
<PER-SHARE-NII> (.12)<F1>
<PER-SHARE-GAIN-APPREC> 1.16<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.06<F1>
<EXPENSE-RATIO> 2.45<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL SMALLER COS FUND CLASS A
<NUMBER> 021
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 976025
<INVESTMENTS-AT-VALUE> 1035350
<RECEIVABLES> 12087
<ASSETS-OTHER> 22652
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1070089
<PAYABLE-FOR-SECURITIES> 11319
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6148
<TOTAL-LIABILITIES> 17467
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 955729
<SHARES-COMMON-STOCK> 27801<F1>
<SHARES-COMMON-PRIOR> 23142<F1>
<ACCUMULATED-NII-CURRENT> (10)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36841
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60062
<NET-ASSETS> 434397<F1>
<DIVIDEND-INCOME> 6189<F1>
<INTEREST-INCOME> 767<F1>
<OTHER-INCOME> (213)<F1>
<EXPENSES-NET> (6866)<F1>
<NET-INVESTMENT-INCOME> (123)<F1>
<REALIZED-GAINS-CURRENT> 42083
<APPREC-INCREASE-CURRENT> 31357
<NET-CHANGE-FROM-OPS> 69062
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (16938)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13277<F1>
<NUMBER-OF-SHARES-REDEEMED> (9687)<F1>
<SHARES-REINVESTED> 1069<F1>
<NET-CHANGE-IN-ASSETS> 312818
<ACCUMULATED-NII-PRIOR> (7)
<ACCUMULATED-GAINS-PRIOR> 35628
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4092<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6866<F1>
<AVERAGE-NET-ASSETS> 409454<F1>
<PER-SHARE-NAV-BEGIN> 15.14<F1>
<PER-SHARE-NII> 0<F1>
<PER-SHARE-GAIN-APPREC> 1.21<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.73)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.62<F1>
<EXPENSE-RATIO> 1.67<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL SMALLER COS FUND CLASS B
<NUMBER> 022
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 976025
<INVESTMENTS-AT-VALUE> 1035350
<RECEIVABLES> 12087
<ASSETS-OTHER> 22652
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1070089
<PAYABLE-FOR-SECURITIES> 11319
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6148
<TOTAL-LIABILITIES> 17467
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 955729
<SHARES-COMMON-STOCK> 16468<F1>
<SHARES-COMMON-PRIOR> 7065<F1>
<ACCUMULATED-NII-CURRENT> (10)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36841
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60062
<NET-ASSETS> 247600<F1>
<DIVIDEND-INCOME> 3037<F1>
<INTEREST-INCOME> 193<F1>
<OTHER-INCOME> (99)<F1>
<EXPENSES-NET> (4628)<F1>
<NET-INVESTMENT-INCOME> (1497)<F1>
<REALIZED-GAINS-CURRENT> 42083
<APPREC-INCREASE-CURRENT> 31357
<NET-CHANGE-FROM-OPS> 69062
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (5227)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11585<F1>
<NUMBER-OF-SHARES-REDEEMED> (2518)<F1>
<SHARES-REINVESTED> 336<F1>
<NET-CHANGE-IN-ASSETS> 312818
<ACCUMULATED-NII-PRIOR> (7)
<ACCUMULATED-GAINS-PRIOR> 35628
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1903<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4628<F1>
<AVERAGE-NET-ASSETS> 189970<F1>
<PER-SHARE-NAV-BEGIN> 14.72<F1>
<PER-SHARE-NII> (.11)<F1>
<PER-SHARE-GAIN-APPREC> 1.16<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.73)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.04<F1>
<EXPENSE-RATIO> 2.43<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL SMALLER COS FUND CLASS D
<NUMBER> 024
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 976025
<INVESTMENTS-AT-VALUE> 1035350
<RECEIVABLES> 12087
<ASSETS-OTHER> 22652
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1070089
<PAYABLE-FOR-SECURITIES> 11319
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6148
<TOTAL-LIABILITIES> 17467
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 955729
<SHARES-COMMON-STOCK> 24624<F1>
<SHARES-COMMON-PRIOR> 19400<F1>
<ACCUMULATED-NII-CURRENT> (10)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36841
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60062
<NET-ASSETS> 370625<F1>
<DIVIDEND-INCOME> 5298<F1>
<INTEREST-INCOME> 645<F1>
<OTHER-INCOME> (182)<F1>
<EXPENSES-NET> (8519)<F1>
<NET-INVESTMENT-INCOME> (2758)<F1>
<REALIZED-GAINS-CURRENT> 42083
<APPREC-INCREASE-CURRENT> 31357
<NET-CHANGE-FROM-OPS> 69062
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (14329)<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10460<F1>
<NUMBER-OF-SHARES-REDEEMED> (6172)<F1>
<SHARES-REINVESTED> 936<F1>
<NET-CHANGE-IN-ASSETS> 312818
<ACCUMULATED-NII-PRIOR> (7)
<ACCUMULATED-GAINS-PRIOR> 35628
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3499<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8519<F1>
<AVERAGE-NET-ASSETS> 349980<F1>
<PER-SHARE-NAV-BEGIN> 14.72<F1>
<PER-SHARE-NII> (.11)<F1>
<PER-SHARE-GAIN-APPREC> 1.17<F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.73)<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.05<F1>
<EXPENSE-RATIO> 2.43<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND CLASS A
<NUMBER> 031
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 742711
<INVESTMENTS-AT-VALUE> 842104
<RECEIVABLES> 7352
<ASSETS-OTHER> 35875
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 885331
<PAYABLE-FOR-SECURITIES> 11540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4606
<TOTAL-LIABILITIES> 16146
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 639593
<SHARES-COMMON-STOCK> 38526<F1>
<SHARES-COMMON-PRIOR> 44189<F1>
<ACCUMULATED-NII-CURRENT> (6)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 130196
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 99402
<NET-ASSETS> 583257<F1>
<DIVIDEND-INCOME> 1925<F1>
<INTEREST-INCOME> 1391<F1>
<OTHER-INCOME> (599)<F1>
<EXPENSES-NET> (9687)<F1>
<NET-INVESTMENT-INCOME> (6970)<F1>
<REALIZED-GAINS-CURRENT> 158948
<APPREC-INCREASE-CURRENT> 81380
<NET-CHANGE-FROM-OPS> 228138
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13304<F1>
<NUMBER-OF-SHARES-REDEEMED> (18967)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 153075
<ACCUMULATED-NII-PRIOR> (4)
<ACCUMULATED-GAINS-PRIOR> (16564)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5811<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9687<F1>
<AVERAGE-NET-ASSETS> 581193<F1>
<PER-SHARE-NAV-BEGIN> 11.31<F1>
<PER-SHARE-NII> (.16)<F1>
<PER-SHARE-GAIN-APPREC> 3.99<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.14<F1>
<EXPENSE-RATIO> 1.67<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class A only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND CLASS B
<NUMBER> 032
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 742711
<INVESTMENTS-AT-VALUE> 842104
<RECEIVABLES> 7352
<ASSETS-OTHER> 35875
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 885331
<PAYABLE-FOR-SECURITIES> 11540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4606
<TOTAL-LIABILITIES> 16146
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 639593
<SHARES-COMMON-STOCK> 3600<F1>
<SHARES-COMMON-PRIOR> 1698<F1>
<ACCUMULATED-NII-CURRENT> (6)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 130196
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 99402
<NET-ASSETS> 53046<F1>
<DIVIDEND-INCOME> 121<F1>
<INTEREST-INCOME> 91<F1>
<OTHER-INCOME> (39)<F1>
<EXPENSES-NET> (913)<F1>
<NET-INVESTMENT-INCOME> (740)<F1>
<REALIZED-GAINS-CURRENT> 158948
<APPREC-INCREASE-CURRENT> 81380
<NET-CHANGE-FROM-OPS> 228138
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2747<F1>
<NUMBER-OF-SHARES-REDEEMED> (845)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 153075
<ACCUMULATED-NII-PRIOR> (4)
<ACCUMULATED-GAINS-PRIOR> (16564)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 379<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 913<F1>
<AVERAGE-NET-ASSETS> 37771<F1>
<PER-SHARE-NAV-BEGIN> 11.09<F1>
<PER-SHARE-NII> (.26)<F1>
<PER-SHARE-GAIN-APPREC> 3.90<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.73<F1>
<EXPENSE-RATIO> 2.42<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class B only. All other data are fund level.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> SELIGMAN HENDERSON GLOBAL TECHNOLOGY FUND CLASS D
<NUMBER> 034
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 742711
<INVESTMENTS-AT-VALUE> 842104
<RECEIVABLES> 7352
<ASSETS-OTHER> 35875
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 885331
<PAYABLE-FOR-SECURITIES> 11540
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4606
<TOTAL-LIABILITIES> 16146
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 639593
<SHARES-COMMON-STOCK> 15805<F1>
<SHARES-COMMON-PRIOR> 17794<F1>
<ACCUMULATED-NII-CURRENT> (6)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 130196
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 99402
<NET-ASSETS> 232882<F1>
<DIVIDEND-INCOME> 760<F1>
<INTEREST-INCOME> 554<F1>
<OTHER-INCOME> (237)<F1>
<EXPENSES-NET> (5557)<F1>
<NET-INVESTMENT-INCOME> (4480)<F1>
<REALIZED-GAINS-CURRENT> 158948
<APPREC-INCREASE-CURRENT> 81380
<NET-CHANGE-FROM-OPS> 228138
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0<F1>
<DISTRIBUTIONS-OF-GAINS> 0<F1>
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4072<F1>
<NUMBER-OF-SHARES-REDEEMED> (6061)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 153075
<ACCUMULATED-NII-PRIOR> (4)
<ACCUMULATED-GAINS-PRIOR> (16564)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2298<F1>
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5557<F1>
<AVERAGE-NET-ASSETS> 229878<F1>
<PER-SHARE-NAV-BEGIN> 11.09<F1>
<PER-SHARE-NII> (.26)<F1>
<PER-SHARE-GAIN-APPREC> 3.90<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.73<F1>
<EXPENSE-RATIO> 2.42<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Class D only. All other data are fund level.
</FN>
</TABLE>
