SELIGMAN [PHOTO OMITTED]
- ------------------------------------------------------
SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
INTERNATIONAL FUND
EMERGING MARKETS
GROWTH FUND
GLOBAL GROWTH
OPPORTUNITIES FUND
GLOBAL SMALLER
COMPANIES FUND
GLOBAL TECHNOLOGY FUND
MID-YEAR REPORT
APRIL 30, 1998
---------------
Investing
Around the World
for Capital
Appreciation
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
<PAGE>
SELIGMAN -- TIMES CHANGE...VALUES ENDURE
J. & W. Seligman & Co. Incorporated is a firm with a long tradition of
investment expertise, offering a broad array of investment choices to help
today's investors seek their long-term financial goals.
[GRAPHIC OMITTED]
James, Jesse and Joseph Seligman, 1870
TIMES CHANGE...
Established in 1864, Seligman's history of providing financial services has been
marked not by fanfare, but rather by a quiet and firm adherence to managing
investments prudently. While the world has changed dramatically in the 134 years
since Seligman first opened its doors, the firm has continued to offer its
clients high-quality investment solutions through changing times.
In the late 19th century, as the country grew, Seligman helped finance the
westward expansion of the railroads, the construction of the Panama Canal, and
the launching of urban transit systems. In the first part of the 20th century,
as America became an industrial power, the firm helped fund the growing capital
needs of the nascent automobile and steel industries.
With the formation of Tri-Continental Corporation in 1929 -- today, the nation's
largest, diversified, publicly-traded closed-end investment company -- Seligman
began shifting its emphasis from investment banking to investment management.
Despite the stock market crash and ensuing depression, Seligman was convinced of
the importance mutual funds could have in building wealth for individual
investors and launched its first open-end fund in 1930.
In the decades that followed, Seligman has continued to offer forward-looking
investment solutions, including funds that focus on technology stocks, municipal
bonds, and international securities.
...VALUES ENDURE
Seligman is proud of its distinctive past and of the traditional values that
continue to shape the firm's business decisions and investment judgment. While
much has changed over the years, the firm's commitment to providing prudent
investment management that seeks to build wealth for clients over time is an
enduring value that will guide Seligman into the new millennium.
TABLE OF CONTENTS
To the Shareholders ....................................................... 1
Market and Economic Overview .............................................. 2
Seligman Henderson International Fund:
Investment Report ....................................................... 3
Performance and Portfolio Overview ...................................... 5
Portfolio of Investments ................................................ 8
Seligman Henderson Emerging Markets Growth Fund:
Investment Report ....................................................... 14
Performance and Portfolio Overview ...................................... 16
Portfolio of Investments ................................................ 19
Seligman Henderson Global Growth Opportunities Fund:
Investment Report ....................................................... 24
Performance and Portfolio Overview ...................................... 26
Portfolio of Investments ................................................ 29
Seligman Henderson Global Smaller Companies Fund:
Investment Report ....................................................... 35
Performance and Portfolio Overview ...................................... 37
Portfolio of Investments ................................................ 40
Seligman Henderson Global Technology Fund:
Investment Report ....................................................... 55
Performance and Portfolio Overview ...................................... 57
Portfolio of Investments ................................................ 60
Statements of Assets and Liabilities ...................................... 67
Statements of Operations .................................................. 68
Statements of Changes in Net Assets ....................................... 69
Notes to Financial Statements ............................................. 71
Financial Highlights ...................................................... 78
Report of Independent Auditors ............................................ 83
Board of Directors ........................................................ 84
Executive Officers and For More Information ............................... 85
Glossary of Financial Terms ............................................... 86
Benchmarks ................................................................ 87
<PAGE>
TO THE SHAREHOLDERS
We are pleased to provide you with the April 30, 1998, Mid-Year Report for
Seligman Henderson Global Fund Series, Inc., which includes the International
Fund, the Emerging Markets Growth Fund, the Global Growth Opportunities Fund,
the Global Smaller Companies Fund, and the Global Technology Fund.
All of the Funds posted strong total returns for the six months ended April 30,
1998, with most outpacing their peers. Fund-specific information, including
investment reports from the Portfolio Managers, begins on page 3.
In the past six months, the most important factor influencing the markets
worldwide has been the economic crisis in the Pacific region. Thus far, events
in the region have not impacted the global economy to the degree that was
originally anticipated. Growth continues to be strong in the US, Europe, and in
select emerging markets. Some industrialized nations have even derived
unexpected benefits from the crisis in the form of less expensive imported
goods. The US, in particular, has seen its financial markets surge ahead,
supported by increased foreign capital inflows.
However, the economic slowdown in the Pacific region is not over and, more
important, Japan has experienced no economic growth this year. Additionally, we
believe the full impact of reduced Asian demand on the global economy has yet to
be seen. The profits of certain multinational companies, particularly in the
technology sector, have already begun to show the influence of the financial
crisis in the Pacific region. Nonetheless, we are optimistic that the steps
being taken by the governments in the Pacific region, specifically Japan, South
Korea, and Indonesia, should restore their countries' financial health in the
long run. Therefore, these economies and stock markets should return to growth
in the longer term. A more detailed discussion of economic and market conditions
in the past six months appears on page 2.
Thank you for your continued support of Seligman Henderson Global Fund Series.
We look forward to serving your global investment needs in the many years to
come.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
June 5, 1998
1
<PAGE>
MARKET AND ECONOMIC OVERVIEW
OVERVIEW
During the six months ended April 30, 1998, the markets and economies of the
East and the West continued to diverge in their performance, as has been the
case for the last 12 months. The US and European stock markets again performed
very well. In contrast, stock markets in the Pacific region were extremely weak.
These relative performances were supported by very positive economic
fundamentals in the West, and very poor fundamentals in the East.
UNITED STATES
In the US, the economy continued to grow quite strongly, while no signs of
rising inflation appeared. Thus far, the primary effect of the crisis in the
Pacific region has been a countering of inflationary pressures, with the reduced
cost of imported goods offsetting the increase in wages caused by the tight
labor market. In the stock market, the reduced growth in corporate profits
during the first quarter of 1998 seems to have been ignored, and the market
posted new highs time and time again.
UNITED KINGDOM
In the past six months, the UK's economy continued to experience the trend of
strong consumer spending and weak manufacturing. In spite of this, bond yields
declined and equity share buybacks increased, resulting in favorable liquidity
and solid performance in the stock market.
CONTINENTAL EUROPE
As in other regions of the West, the economies in Continental Europe were quite
strong. Inflation continued to be exceptionally subdued, and the rates of
economic growth improved. Following a long period of tight fiscal policy, the
Continental European economies now appear well positioned for the European
Economic Monetary Union (EMU), slated to begin in 1999.
In the last six months, we saw exceptional performance from the "Euro-bubble"
stock markets: Ireland, Italy, Spain, and Portugal. In these countries, short-
and long-term interest rates declined and converged with the core Continental
European countries of Germany and France. Retail interest also experienced a
marked resurgence in the Euro-bubble markets, and led to substantial gains.
Another positive factor was the continuing restructuring of businesses as
managements focused on the forthcoming monetary union. Overall, we expect
corporate profit growth in Continental Europe to be the best of the major
regions.
JAPAN
The Japanese economy continued to falter despite a number of substantial fiscal
packages. Further, consumers remained reluctant to spend and the latest
far-reaching fiscal packages may not be sufficient, though they will undoubtedly
boost the economy. Therefore, we believe it may be difficult to achieve a
sustainable economic recovery. The stock market experienced a brief recovery at
the beginning of 1998, but declined again by April 30.
PACIFIC REGION
In early 1998, there were some signs that the currency situation had stabilized
in the Pacific region. However, in Indonesia and South Korea, considerable
problems are unresolved and political tension is on the rise. The stock markets
in the whole region showed signs of recovery, but returned once again to a
downward trend. Overall, the economic situation in the Pacific region remains
poor, and could remain so for some time.
EMERGING MARKETS
The performance of the emerging markets outside the Pacific region was mixed
during the last six months. The stock markets in Brazil and Mexico recovered
strongly, bolstered by the favorable economic fundamentals in North America. In
addition, positive returns were seen in Europe, notably in Hungary and Greece.
By contrast, the Russian stock market was quite weak because of falling oil
prices.
SUMMARY
An unforeseen effect of the Pacific region crisis has been the sustained
liquidity in the US stock market and strong economic growth. We believe that
Western governments--encouraged by stable rates of inflation--refrained from
raising interest rates so as not to exacerbate the situation in the Pacific
region. Economic conditions remain poor in the Pacific region, and at this point
the situation is not expected to change in the near term.
With this background, the bond markets have been generally supportive of equity
markets worldwide. Equity valuations have risen and most stock markets are quite
expensive. After a strong start in 1998, we expect some consolidation as
investors see a decrease in the rate of growth in corporate earnings in the US
and the UK, and as the equity supply increases in Europe. Provided there is no
significant deterioration in the economies of the Pacific region -- particularly
those of China and Japan--further progress should be made later in 1998.
2
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
PERFORMANCE REVIEW
In the six months ended April 30, 1998, Seligman Henderson International Fund
posted a 19.59% total return based on the net asset value of Class A shares,
outpacing the 16.18% total return of its peer group as measured by the Lipper
International Funds Average, and the 15.59% total return of the Morgan Stanley
Capital International EAFE (Europe, Australasia, Far East) Index. Excluding
Japan and the Pacific region, equity markets in the developed world rose
sharply. Continental Europe enjoyed rising economic and corporate profit growth
rates and large-scale restructuring, making it the best-performing region.
Generally, the Fund's strong return was driven by its heavy weighting in the
better-performing Continental European and UK markets.
PORTFOLIO STRATEGY
United Kingdom
o Boosted by strong domestic liquidity, the UK was the
second-best-performing region in the past six months, rising 23%. The main
sources of the liquidity included high cash levels in institutional
portfolios and corporate activity such as share buybacks, mergers, and
acquisitions. These important factors far outweighed the slowing economic
activity and single-digit corporate profit growth rates.
[PHOTO OMITTED]
International Team: (from left) James Robinson, Ben Elwes, Iain C. Clark
(Portfolio Manager), David Thornton, Peter Bassett, (seated) Stacey Navin,
Kirsteen Morrison
The Fund maintained its 20% weighting in the UK, as we believe that the
positive technical backdrop will continue to temper the slowing profit
growth. Our strategy has been to increase exposure to attractively valued
stocks, such as Kingfisher, a retailer with "do-it-yourself" stores in the
UK and electrical outlet stores in France.
Continental Europe
o The Continental European markets provided the largest gains for the Fund,
rising 32% on average, supported by aggressive upgrades to earnings
forecasts. In the coming months, crucial issues for the equity markets in
Continental Europe will include interest rates, earnings, and valuations.
Restructuring will be another key driver for equities, and we believe that
further consolidation will take place.
Our outlook remains positive for Continental European equity markets,
based on strong liquidity, low interest rates, corporate activity,
restructuring, and share buybacks. Our strategy in the past six months was
to add companies that were positioned to benefit from stronger economic
growth, such as Centros Comerciales Continente, a Spanish hypermarket
operator, and Vendex International, a Dutch retailer.
FUND OBJECTIVE
Seligman Henderson International Fund, which commenced investment operations on
April 7, 1992, seeks long-term capital appreciation by investing primarily in
the stocks of larger-sized companies outside the US.
3
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
Japan
o During the six months ended April 30, 1998, the Japanese market fell 10%,
as the already weak economic situation further deteriorated, and concern
over corporate credit risk increased. Additionally, the government failed
to convince investors that the measures it was taking were sufficient to
improve the economy.
Until the government makes fundamental changes to address the country's
economic problems and improve market sentiment, we will maintain a low
weighting in this region. Presently, the Fund's exposure in Japan is 8%,
with a focus toward defensive stocks such as Kirin Brewery and Nippon
Telegraph & Telephone, which have stable earnings.
Pacific Region
o Within the Pacific region, the economic and financial crisis caused
further stock market losses in the past six months. The region continued
to suffer from the negative news regarding trade accounts, corporate
bankruptcies, and social unrest.
We believe the equity markets in the Pacific region may continue to
correct until the economies begin to show improvement and equity
valuations become more attractive. We also believe that a recovery in
Japan is critical for growth in the region. The Fund held the portfolio's
weighting in the region at a low 3%, and sought safety by reducing the
portfolio's exposure to property and financial stocks.
Emerging Markets
o During the period, emerging markets continued to be negatively affected by
the malaise in the Pacific region. One notable exception was the Greek
stock market, which soared as foreign investors focused on its convergence
with European Exchange Rate Mechanism (ERM).
We continue to believe that the economic fundamentals of many emerging
countries are sound. However, relative performance may remain under
pressure until sentiment toward the Pacific region improves. We purchased
Hellenic Telecommunication Organization to give the portfolio exposure to
the Greek market, while we slightly reduced the portfolio's exposure to
other emerging markets.
SUMMARY
Overall, we expect Continental Europe, the UK, and select emerging markets to
offer attractive return potential, as their positive economic and interest rate
backgrounds should be sustained. We also believe that corporate earnings have
the potential to be the greatest in these regions. While we expect that the
economies in Japan and the Pacific region will remain depressed over the next
few months, we believe both regions will improve significantly in the long term.
Note: All figures are in US dollar terms. All specific market performance
information included in the Investment Report is taken from the MSCI country
index for the six-month period ended April 30, 1998, unless otherwise stated.
4
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
Country Allocation
April 30, 1998
MSCI
EAFE
FUND INDEX
------- -------
CONTINENTAL EUROPE ............................. 60.00% 49.85%
Austria ..................................... -- 0.42
Belgium ..................................... 0.99 1.55
Denmark ..................................... 1.57 1.00
Finland ..................................... -- 1.02
France ...................................... 12.90 8.84
Germany ..................................... 9.74 10.30
Greece ...................................... 0.65 --
Hungary ..................................... 3.65 --
Ireland ..................................... -- 0.53
Italy ....................................... 5.32 4.70
Netherlands ................................. 7.35 5.78
Norway ...................................... -- 0.63
Portugal .................................... 0.78 0.73
Spain ....................................... 5.94 3.37
Sweden ...................................... 4.47 3.22
Switzerland ................................. 6.64 7.76
JAPAN .......................................... 7.98 22.00
LATIN AMERICA .................................. 6.54 --
Argentina ................................... 0.61 --
Brazil ...................................... 4.09 --
Mexico ...................................... 1.84 --
PACIFIC ........................................ 3.04 6.47
Australia ................................... 1.02 2.53
Hong Kong ................................... 0.65 2.15
Malaysia .................................... -- 0.78
New Zealand ................................. -- 0.25
Philippines ................................. 0.05 --
Singapore ................................... -- 0.76
South Korea ................................. 1.10 --
Taiwan ...................................... 0.22 --
UNITED KINGDOM ................................. 19.82 21.68
OTHER .......................................... 1.10 --
Russia ...................................... 1.10 --
OTHER ASSETS LESS LIABILITIES .................. 1.52 --
------ ------
TOTAL .......................................... 100.00% 100.00%
====== ======
Largest Industries
April 30, 1998
[The following table was represented as a bar chart in the printed material]
TELECOMMUNICATIONS $12,352,503
BANKING $11,646,146
RETAILING $ 8,696,200
RESOURCES $ 8,607,496
INSURANCE $ 7,391,359
Regional Allocation
April 30, 1998
[The following table was represented as a pie chart in the printed material]
Continental Europe 60.00%
United Kingdom 19.82%
Japan 7.98%
Latin America 6.54%
Pacific 3.04%
Other 1.10%
Other Assets Less Liabilities 1.52%
Largest Portfolio Holdings
April 30, 1998
SECURITY VALUE
- ---------- ----------
ING Groep (Netherlands) .......................................... $2,071,032
Mannesmann (Germany) ............................................. 1,949,368
AXA-UAP (France) ................................................. 1,936,088
Benckiser (Series B) (Netherlands) ............................... 1,921,014
CS Holdings (Switzerland) ........................................ 1,868,169
Magyar Tavkozlesi "Matav"
(ADRs) (Hungary) ............................................... 1,852,600
Zurich Versicherung
(Switzerland) .................................................. 1,848,690
MOL Magyar Olaj-es Gazipari ......................................
(GDRs) (Hungary) ............................................... 1,788,765
WPP Group (UK) ................................................... 1,748,636
Vivendi (France) ................................................. 1,732,134
5
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
Investment Results Per Share
TOTAL RETURNS
For Periods Ended April 30, 1998
<TABLE>
<CAPTION>
AVERAGE ANNUAL
---------------------------------------------------------
CLASS A CLASS B CLASS D
SINCE SINCE SINCE
SIX ONE FIVE INCEPTION INCEPTION INCEPTION
MONTHS* YEAR YEARS 4/7/92 4/22/96 9/21/93
------- ------- ------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Class A**
With Sales Charge 13.93% 18.14% 11.27% 12.28% n/a n/a
Without Sales Charge 19.59 24.01 12.37 13.18 n/a n/a
Class B**
With CDSL+ 13.97 17.88 n/a n/a 11.58% n/a
Without CDSL 18.97 22.88 n/a n/a 10.24 n/a
Class D**
With 1% CDSL 17.97 21.88 n/a n/a n/a n/a
Without CDSL 18.97 22.88 n/a n/a n/a 10.78%
Lipper International
Funds Average*** 16.18 20.58 12.15 12.44++ 12.66++++ 11.50(b)
MSCI EAFE Index*** 15.59 19.22 10.40 12.17+++ 8.86(a) 9.70(c)
</TABLE>
NET ASSET VALUE
APRIL 30, 1998 OCTOBER 31, 1997 APRIL 30, 1997
--------------- ------------------ ---------------
Class A $19.93 $17.92 $17.28
Class B 19.09 17.30 16.75
Class D 19.09 17.30 16.75
CAPITAL GAIN INFORMATION
For the Six Months Ended April 30, 1998
Paid $1.222
Realized 0.671
Unrealized 4.462(d)
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume the investment of
dividends and capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class A shares also reflect the effect of the service
fee of up to 0.25% under the Administration, Shareholder Services and
Distribution Plan after September 21, 1993, only. Returns for Class B
shares are calculated with and without the effect of the maximum 5%
contingent deferred sales load ("CDSL"), charged on redemptions made
within one year of the date of purchase, declining to 1% in the sixth year
and 0% thereafter. Returns for Class D shares are calculated with and
without the effect of the 1% CDSL, charged on redemptions made within one
year of the date of purchase.
*** The Lipper International Funds Average and the Morgan Stanley Capital
International EAFE (Europe, Australasia, Far East) Index (MSCI EAFE Index)
are unmanaged benchmarks that assume reinvestment of dividends. The Lipper
International Funds Average excludes the effect of sales charges and the
MSCI EAFE Index excludes the effect of fees and sales charges. The monthly
performance of the Lipper International Funds Average is used in the
Performance and Portfolio Overview. Investors cannot invest directly in an
average or an index.
+ The CDSL is 5% for periods of one year or less, and 3% since inception.
++ From April 9, 1992.
+++ From March 31, 1992.
++++ From April 25, 1996.
(a) From April 30, 1996.
(b) From September 23, 1993.
(c) From September 30, 1993.
(d) Represents the per share amount of net unrealized appreciation of
portfolio securities as of April 30, 1998.
6
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
This chart compares a $10,000 hypothetical investment made in Seligman
Henderson International Fund Class A shares, with and without the initial 4.75%
maximum sales charge, since the commencement of investment operations on April
7, 1992, through April 30, 1998, to a $10,000 hypothetical investment made in
the Lipper International Funds Average and the Morgan Stanley Capital
International EAFE (Europe, Australasia, Far East) Index (MSCI EAFE Index) for
the same period. It is important to keep in mind that the Index excludes the
effect of fees or sales charges, and the Average excludes the effect of sales
charges.
[GRAPH OMITTED]
There are specific risks associated with global investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and rapid changes in political and economic conditions.
As shown on page 6, the performances of Class B and D shares will be
greater than or less than the performance shown for Class A shares, based on the
differences in sales charges and fees paid by shareholders. Past performance is
not indicative of future investment results.
Largest Portfolio Changes
During the Six Months Ended April 30, 1998
SHARES
-------------------
HOLDINGS
ADDITIONS INCREASE 4/30/98
- ----------- --------- -------
Alcatel Alsthom (France) ............................. 7,625 7,625
Bayerische Motoren Werke
"BMW" (Germany) .................................... 1,116 1,116
Benckiser (Series B)
(Netherlands) ...................................... 32,944 32,944
Deutsche Bank
(Germany) .......................................... 12,556 12,556
Magyar Tavkozlesi "Matav"
(ADRs) (Hungary) ................................... 62,800 62,800
Panamerican Beverages
(Class A) (Mexico) ................................. 31,200 31,200
Samsung Electronics
(South Korea) ...................................... 19,300 19,300
Schneider (France) ................................... 12,600 12,600
Schweizerischer Bankverein
(Switzerland) ...................................... 3,195 3,195
Vendex International
(Netherlands) ...................................... 14,485 14,485
SHARES
--------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/98
- ------------- -------- ---------
Banque Nationale de Paris
(France) ........................................... 23,800 --
Desc (ADRs) (Mexico) ................................. 34,894 --
Elsevier (Netherlands) ............................... 49,587 --
France Telecom (France) .............................. 16,028 --
Nomura Securities (Japan) ............................ 58,000 --
Roche Holdings
(Switzerland) ...................................... 143 --
SKW Trostberg (Germany) .............................. 27,023 --
Thyssen (Germany) .................................... 3,741 1,795
Usinor Sacilor (France) .............................. 61,070 --
Volkswagen(Germany) .................................. 1,580 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
7
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
COMMON STOCKS 98.48%
ARGENTINA 0.61%
Telefonica de Argentina (ADRs)
Provider of telecommunications
services (Telecommunications) 15,900 $ 613,144
----------
AUSTRALIA 1.02%
Colonial
Provider of financial services in
banking, retail insurance, and
investments (Financial Services) 140,000 491,060
Rio Tinto
International mining company
(Metals) 4,000 55,243
Telstra*
Provider of telecommunications
services (Telecommunications) 25,500 59,629
Westpac Banking
Provider of banking services
(Banking) 60,700 406,105
----------
1,012,037
----------
BELGIUM 0.99%
Credit Communal Holding/Dexia*
Special-purpose banking
(Financial Services) 7,245 991,421
----------
BRAZIL 4.09%
Companhia Energetica de Minas
Gerais "Cemig" (ADRs)
Provider of electrical power
(Utilities) 15,000 710,625
Companhia Paranaense
de Energia "Copel" (ADRs)
Provider of electric services
and equipment (Utilities) 39,000 555,750
Petroleo Brasileiro "Petrobras" (ADRs)
Producer and distributor of
oil, petrochemicals, and gas
(Resources) 55,770 1,411,288
Telecomunicacoes Brasileiras
"Telebras" (ADRs)
Provider of telecommunications
services (Telecommunications) 11,536 1,405,950
----------
4,083,613
----------
DENMARK 1.57%
Novo Nordisk (Class B)
Producer and supplier of
insulin and industrial enzymes
(Health and Household) 4,585 742,922
Tele Danmark (Series B)*
Provider of telecommunications
services and equipment
(Telecommunications) 9,828 824,924
----------
1,567,846
----------
FRANCE 12.90%
Accor
Hotel operator and provider
of related services
(Leisure and Hotels) 6,332 1,724,661
Alcatel Alsthom
Developer of telecommunications
equipment and systems
(Telecommunications) 7,625 1,412,858
AXA-UAP
Provider of insurance and
financial services (Insurance) 16,502 1,936,088
Carrefour Supermarche
Supermarket operator in
Europe, the Americas, and
Taiwan (Retailing) 1,924 1,101,484
ELF Aquitaine
Oil and gas exploration;
manufacturer of chemical
compounds (Resources) 11,439 1,499,854
Etam Developpement*
Retailer of women's clothing
and intimate apparel (Retailing) 8,869 837,157
Lafarge
Producer and seller of
building materials
(Construction and Property) 17,890 1,685,003
Schneider
Manufacturer and vendor of
electronics, electronic components,
and automated manufacturing
systems (Electronics) 12,600 942,252
- ----------
See footnotes on page 13.
8
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
FRANCE (continued)
Vivendi
Water purification and
distribution; energy production
(Industrial Goods and Services) 9,323 $1,732,134
----------
12,871,491
----------
GERMANY 9.74%
Adidas-Salomon
Manufacturer and marketer of
sporting goods (Retailing) 7,695 1,272,503
Bayer
Producer of specialty chemicals,
pharmaceuticals, and plastics
(Chemicals) 25,418 1,132,205
Bayerische Motoren Werke "BMW"
Manufacturer and worldwide
vendor of luxury automobiles
and motorcycles (Manufacturing) 1,116 1,230,334
Bayerische Vereinsbank
Provider of universal banking
services (Banking) 19,124 1,426,846
Deutsche Bank
Worldwide banking operation
(Banking) 12,556 973,160
Lufthansa
Airline services worldwide;
operator of Penta hotels
(Transportation) 56,466 1,318,902
Mannesmann
Plant and machinery
construction; automotive
technology (Industrial Goods
and Services) 2,476 1,949,368
Thyssen
Manufacturer of steel
products (Metals) 1,795 410,771
----------
9,714,089
----------
GREECE 0.65%
Hellenic Telecommunication Organization
Provider of telecommunications
services (Telecommunications) 22,600 647,235
----------
HONG KONG 0.65%
Citic Pacific
Holding company with interests in
infrastructure, power generation,
environment, aviation,
telecommunications, credit card
services, and property investment
(Diversified) 21,000 64,503
Hong Kong & China Gas
Producer, distributor and marketer
of gas and gas appliances
(Utilities) 39,600 53,917
Hutchison Whampoa
Holding company with major
interests in finance and
property investment (Industrial
Goods and Services) 70,000 432,729
New World Development
Property investor and developer
(Construction and Property) 11,000 31,303
New World Infrastructure*
Developer and operator
of infrastructure projects
(Construction and Property) 28,000 60,166
----------
642,618
----------
HUNGARY 3.65%
Magyar Tavkozlesi "Matav" (ADRs)
Provider of telecommunications
services (Telecommunications) 62,800 1,852,600
MOL Magyar Olaj-es
Gazipari (GDRs)+*
Oil and gas producer and
distributor (Resources) 58,600 1,788,765
----------
3,641,365
----------
ITALY 5.32%
Banca Popolare di Bresci
Provider of commercial banking
and financial services (Banking) 70,380 1,072,684
ENI
Refiner and marketer of oil
and gas (Resources) 183,910 1,234,891
Istituto Nazionale delle Assicurazioni
Provider of life and non-life
insurance products (Insurance) 43,056 1,295,448
- ----------
See footnotes on page 13.
9
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
ITALY (continued)
Telecom Italia
Provider of telecommunications
services (Telecommunications) 323,776 $1,707,066
----------
5,310,089
----------
JAPAN 7.98%
Aoyama Trading
Retailer of clothing (Retailing) 5,000 114,735
Autobacs Seven
Manufacturer and retailer of
automobile and truck parts
(Retailing) 6,700 221,796
Bank of Tokyo-Mitsubishi
Provider of a broad range
of financial services
(Financial Services) 26,000 320,611
Banyu Pharmaceutical
Producer and vendor of
pharmaceuticals for human
and veterinary use (Health and
Household) 13,000 167,250
Benesse
Provider of educational
services (Business Services) 4,300 138,464
CSK
Information services company
(Business Services) 17,100 362,160
Dai Nippon Printing
Provider of printing services for
commercial and industrial uses
(Industrial Goods and Services) 17,000 287,778
Daiwa Securities
Provider of financial services,
including securities dealing,
brokerage, underwriting, and
distribution (Financial Services) 93,000 349,848
Denny's
Restaurant operator (Restaurants) 6,000 153,482
East Japan Railway
Provider of railway services
(Transportation) 61 302,900
Fujitsu Business Systems
Electronics and communications
equipment dealer
(Business Services) 6,000 92,540
Ishikawajima-Harima
Manufacturer of industrial heavy
machinery and equipment
(Industrial Goods and Services) 147,000 246,631
Japan Airport Terminal
Provider of management and
maintenance services for Haneda
airport terminal (Transportation) 14,000 87,424
Japan Tobacco
Tobacco producer (Tobacco) 38 270,744
KAO
Manufacturer of cosmetics
and personal care products
(Consumer Products) 22,000 321,935
Kirin Brewery
Beer brewery and producer of soft
drinks, food products, whiskey,
and pharmaceuticals (Consumer
Products) 31,000 269,383
Mitsui Chemicals
Producer of petrochemical
products (Chemicals) 122,000 264,349
Mitsui Marine & Fire
Provider of non-life insurance
(Insurance) 47,000 240,101
Mitsui O.S.K. Lines
Shipping company
(Transportation) 144,000 214,513
Nippon Telegraph & Telephone
Provider of telecommunications
services (Telecommunications) 39 340,368
Nitto Denko
Producer of industrial materials
(Industrial Goods and Services) 17,000 258,361
Pioneer Electronic
Manufacturer of audio
equipment (Electronics) 25,000 408,156
Secom
Security services pioneer
(Retailing) 5,000 293,421
Sumitomo Bank
Provider of commercial
banking services (Banking) 31,000 291,540
- ----------
See footnotes on page 13.
10
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
JAPAN (continued)
Sumitomo Realty & Development
Real estate developer
(Construction and Property) 68,000 $ 324,869
Sumitomo Trust and Banking
Trust bank with commercial
banking operations (Banking) 38,000 197,841
Takefuji
Provider of consumer financial
services (Financial Services) 6,000 313,734
Toho
Producer and distributor of movies,
TV dramas, and videos (Media) 1,100 114,953
Toshiba
Diversified manufacturer of
consumer and industrial
electronics (Electronics) 99,000 457,330
Tsubaki Nakashima
Manufacturer of ball bearings
(Manufacturing) 29,000 155,347
Yamaha
Manufacturer of musical
instruments and audio
equipment (Manufacturing) 26,000 234,737
York-Benimaru
Supermarket chain operator
(Retailing) 6,600 142,760
----------
7,960,061
----------
MEXICO 1.84%
Grupo Iusacell (ADRs)*
Provider of wireless
telecommunications services
(Telecommunications) 30,400 589,000
Panamerican Beverages
(Class A)
Producer of Coca-Cola and
other beverages (Consumer
Products) 31,200 1,244,100
----------
1,833,100
----------
NETHERLANDS 7.35%
Akzo Nobel
Manufacturer of diversified
chemicals (Chemicals) 5,593 1,136,912
Benckiser (Series B)*
Producer and supplier of
household cleaning products
(Consumer Products) 32,944 1,921,014
ING Groep
Worldwide underwriter of
reinsurance; provider of
financial and consumer
credit (Insurance) 31,892 2,071,032
Philips Electronics
Consumer and industrial
electronics (Electronics) 14,486 1,275,290
Vendex International
Operator of companies active
in retail trading and business
services (Retailing) 14,485 928,461
----------
7,332,709
----------
PHILIPPINES 0.05%
Philippine Long Distance Telephone
Telephone utility
(Telecommunications) 2,000 53,416
----------
PORTUGAL 0.78%
Electricidade de Portugal
Generator and distributor
of electricity (Utilities) 30,378 777,188
----------
RUSSIA 1.10%
Lukoil Holding (ADRs)
Prospector, extractor, and transporter
of oil and gas (Resources) 8,500 560,210
Tatneft (ADRs)
Oil and gas explorer and
producer (Resources) 27,500 532,812
----------
1,093,022
----------
SOUTH KOREA 1.10%
Samsung Electronics
Manufacturer of consumer
and industrial electronics and
semiconductors (Electronics) 19,300 1,068,612
Samsung Electronics (Rights)*
Manufacturer of consumer and
industrial electronics and
semiconductors (Electronics) 1,535 29,574
----------
1,098,186
----------
- ----------
See footnotes on page 13.
11
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
SPAIN 5.94%
Actividades de Construccion
y Servicios
Designer and builder of public
works projects, residential
homes, and other buildings
(Construction and Property) 34,174 $1,120,422
Banco Bilbao Vizcaya
Provider of banking services
(Banking) 27,711 1,424,571
Centros Comerciales
Continente
Hypermarket chain selling
groceries, kitchen appliances,
auto accessories, and clothing
(Retailing) 38,203 899,307
Endesa
Producer, transmitter, and
distributor of electricity
to other utilities (Utilities) 53,169 1,289,960
Telefonica de Espana
Provider of telecommunications
services (Telecommunications) 28,035 1,169,159
Telefonica de Espana (Rights)*
Provider of telecommunications
services (Telecommunications) 33,667 26,050
----------
5,929,469
----------
SWEDEN 4.47%
Astra (Class A)
Developer, manufacturer, and
marketer of pharmaceuticals
(Health and Household) 66,829 1,371,373
L.M. Ericsson Telefon (Series B)
Manufacturer of
telecommunications equip-
ment (Telecommunications) 31,356 1,651,104
Nordbanken Holding
Provider of banking, financial,
loan, and insurance services
(Banking) 194,678 1,432,139
----------
4,454,616
----------
SWITZERLAND 6.64%
CS Holdings
Banking group (Banking) 8,503 1,868,169
Nestle
Producer of consumer packaged
goods (Consumer Products) 210 406,858
Novartis
Manufacturer of pharmaceuticals
(Health and Household) 845 1,395,206
Schweizerischer Bankverein
Provider of banking services
(Banking) 3,195 1,108,252
Zurich Versicherung
Provider of insurance services
(Insurance) 3,038 1,848,690
----------
6,627,175
----------
TAIWAN 0.22%
The ROC Taiwan Fund
Closed-end fund investing
in Taiwan (Miscellaneous) 26,000 221,000
----------
UNITED KINGDOM 19.82%
Associated British Ports Holdings
Operator of ports
(Transportation) 134,500 795,203
B.A.T. Industries
Manufacturer of tobacco
products; financial services
company (Tobacco) 145,000 1,384,747
British Biotech
Biotechnology company
(Health and Household) 215,000 214,854
British Petroleum
Oil producer, refiner, and
distributor (Resources) 100,000 1,579,676
Bunzl
Distributor and manufacturer
of paper and plastic products
(Manufacturing) 225,000 1,104,477
Dixons Group
Consumer electronics retailer
(Retailing) 73,000 698,674
FKI Babcock
Electrical engineering company
(Industrial Goods and Services) 260,000 895,791
- ----------
See footnotes on page 13.
12
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson International Fund
SHARES VALUE
----------- -----------
UNITED KINGDOM (continued)
Granada Group
Television group with additional
leisure interests, including
hotels (Leisure and Hotels) 94,000 $1,617,742
Kingfisher
Producer and retailer of consumer
goods and merchandise
(Retailing) 43,700 790,084
Laporte
Producer and seller of
specialty chemicals (Chemicals) 70,000 942,454
National Power
Electric power generation
(Utilities) 140,000 1,361,582
Railtrack Group
Provider of rail services
(Transportation) 87,101 1,598,799
Rolls Royce
Aerospace; power generation,
transmission, and distribution
systems (Industrial Goods
and Services) 199,500 938,429
Royal Bank of Scotland
Provider of banking services
(Banking) 92,000 1,444,839
Tesco
Supermarket chain (Retailing) 148,500 1,395,818
United Utilities
Provider of water utility
services (Utilities) 90,000 1,256,884
WPP Group
Provider of worldwide marketing
services, including advertising,
public relations, and market
research (Media) 275,500 1,748,636
-----------
19,768,689
-----------
TOTAL INVESTMENTS 98.48%
(Cost $75,407,283) 98,243,579
OTHER ASSETS
LESS LIABILITIES 1.52% 1,519,939
-----------
NET ASSETS 100.00% $99,763,518
===========
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
13
<PAGE>
INVESTMENT REPORT
Seligman Henderson Emerging Markets Growth Fund
PERFORMANCE REVIEW
During the six months ended April 30, 1998, the emerging markets were
characterized by great volatility: they continued to be negatively affected by
the crisis in the Pacific region in December, but generally rallied during the
first months of 1998. However, this rally did not last for long, and the markets
experienced a sell-off in April. During this period, the Fund posted a total
return of 8.31% based on the net asset value of Class A shares. This compares to
the 3.64% total return posted by the Morgan Stanley Capital International
Emerging Markets Free Index (MSCI EMF Index), and to the 3.79% total return
posted by the Lipper Emerging Markets Funds Average.
Overall, we increased cash levels sharply in advance of the peak of the Pacific
region crisis. In mid-December 1997, however, the portfolio's cash level was
reduced in anticipation of the rebound that occurred in January and February
1998. In late March and April, holdings in the Pacific region were reduced and
the proceeds were invested in the Mediterranean region.
PORTFOLIO STRATEGY
Pacific Region
o During the six months ended April 30, 1998, the markets of the Association
of South East Asian Nations (ASEAN) showed negative performances, despite
some market rallies between January and March. The worst performer in the
area was Indonesia, declining 62%. Intervention by the International
Monetary Fund (IMF) failed to instill confidence in either the economy or
the government, and the crisis has continued beyond April 30. Other
markets in the region also fared poorly, including Thailand, Malaysia, and
the Philippines.
The Fund maintained a low weighting in the region throughout the period.
In January, exposure was increased in Thailand, Malaysia, and the
Philippines in anticipation of market rallies. However, in March, exposure
in Malaysia was reduced as the rally faltered. The Fund continues to
maintain a defensive position in Thailand and the Philippines, with its
holdings in PTT Exploration and Production Public Company, a Thai producer
of natural gas, and in Philippine Long Distance Telephone. The Fund sold
its holdings in Indonesia during the period.
o In the Northern Pacific region, the attack on the Hong Kong dollar in
November 1997 was followed by a currency crisis in December, when South
Korea undertook a refinance package with the IMF. As in the ASEAN markets,
there was a rally in January that lasted until March. However, it was
followed by a retraction in April. Overall, the South Korean, Chinese, and
Taiwanese markets fell significantly in the period.
[PHOTO OMITTED]
International Team: (from left) Nicholas Vardy, Monica Ball, Peter Bassett
(Portfolio Manager), Kirsteen Morrison
FUND OBJECTIVE
Seligman Henderson Emerging Markets Growth Fund, which commenced operations on
may 28, 1996, seeks long-term capital appreciation by investing primarily in
equity securities of emerging markets around the world.
14
<PAGE>
INVESTMENT REPORT
Seligman Henderson Emerging Markets Growth Fund
The Fund maintained its exposure to "Greater China," where the economy
remained more robust than the rest of the region. The Fund remains
conservatively positioned in China, with holdings in large-capitalization
companies that we believe will benefit from continuing growth, such as
Huaneng Power International, China Telecom, and New World Infrastructure.
Currently, the only stock held in South Korea is Samsung Electronics, a
manufacturer of semiconductors.
Latin America
o The Latin American markets were marginally affected by the economic crisis
in the Pacific region, which coincided with a decline in commodity prices.
Chile, a large exporter of copper, was the worst affected market,
declining 14.1%. The Brazilian currency held fairly steady during the
crisis, and the market reacted favorably, gaining 16.6%. The markets in
Argentina and Mexico also gained 13.7% and 14.1%, respectively.
The Fund maintained its exposure to Latin America during the six months
under discussion, and Brazil and Mexico continued to be the countries with
the largest weightings in the Latin America portfolio. Within the
Brazilian portfolio, emphasis remains on privatization stocks such as
Telebras and Petrobras. Within the Mexican portfolio, the emphasis remains
on domestic consumption stocks such as Femsa, Grupo Televisa, and Grupo
Iusacell. Continuing this trend, Pepsi-Gemex was added to the portfolio,
and the Fund sold its remaining export-oriented stocks, Alfa and Desc. In
Argentina, Telefonica de Argentina was added in anticipation of positive
future earnings.
Central/Southern Europe
o During the period, the emerging European markets showed mixed performance.
The Greek market benefited from the currency's entry into the European
Exchange Rate Mechanism (ERM). The Portuguese market also benefited from
that currency's impending integration into the European Economic Monetary
Union (EMU). Other markets on the fringe of EMU also performed well, with
Hungary and Turkey rising. In contrast, the Russian market fell 19% due to
political uncertainty and declining oil prices.
The portfolio's exposure to Greece was increased prior to the country's
entrance into the ERM. Purchases included Alpha Credit Bank, Hellenic
Telecommunication Organization, and Sarantis. The Fund re-entered Poland
with the purchase of Powszechny Bank Kredytowy and Prokom Software. The
portfolio's holdings in Russia were reduced though the partial sale of
energy holdings, including Lukoil Holding, Tatneft, and Gazprom. Finally,
the Fund purchased its first holdings in Israel: NICE-Systems, a computer
telephony integration products company, and Tecnomatix Technologies, a
computer-aided engineering software company.
Indian Subcontinent/Africa
o The Indian Subcontinent/African markets were less volatile during the
period. The Indian market fell 1.5% due to concerns over the Pacific
region economic crisis, while the South African market rose 18.5% due to
lower interest rates.
In India, the portfolio's emphasis was switched to growth stocks through
the purchase of ITC and Mahanagar Telephone Nigam, the Bombay and New
Delhi telephone utility. In South Africa, the Fund increased exposure
through the purchase of Barlow, a cement and civil engineering company.
SUMMARY
Performances in the emerging markets will most likely continue to differ based
on region. It is expected that the emerging European markets will continue to be
strong due to further convergence and integration with the EMU. Even though the
Latin American markets show good value, sentiment is lacking. Opportunities in
the Pacific region remain few, especially in light of weakening growth in China.
As always, we will continue to concentrate on the careful allocation of assets,
a strategy that we believe will be rewarded.
Note: All figures are in US dollar terms. All specific market performance
information included in the Investment Report is taken from the MSCI country
index for the six-month period ended April 30, 1998, unless otherwise stated.
15
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
Investment Results Per Share
TOTAL RETURNS
For Periods Ended April 30, 1998
AVERAGE ANNUAL
---------------------
SINCE
SIX ONE INCEPTION
MONTHS* YEAR 5/28/96
------- ---- ---------
Class A**
With Sales Charge 3.11% (5.24)% 3.08%
Without Sales Charge 8.31 (0.50) 5.75
Class B**
With CDSL+ 2.84 (6.08) 2.98
Without CDSL 7.84 (1.13) 4.98
Class D**
With 1% CDSL 6.70 (2.25) n/a
Without CDSL 7.70 (1.26) 4.91
Lipper Emerging Markets
Funds Average*** 3.79 (5.90) 1.46++
MSCI EMF Index*** 3.64 (14.53) (5.61)+++
NET ASSET VALUE
APRIL 30, 1998 OCTOBER 31, 1997 APRIL 30, 1997
-------------- ---------------- --------------
Class A $7.95 $7.34 $7.99
Class B 7.84 7.27 7.93
Class D 7.83 7.27 7.93
CAPITAL GAIN (LOSS) INFORMATION
For the Six Months Ended April 30, 1998
Realized $(0.210)
Unrealized 0.855(a)
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume the investment of
dividends and capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class B shares are calculated with and without the
effect of the maximum 5% contingent deferred sales load ("CDSL"), charged
on redemptions made within one year of the date of purchase, declining to
1% in the sixth year and 0% thereafter. Returns for Class D shares are
calculated with and without the effect of the 1% CDSL, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Emerging Markets Funds Average and the Morgan Stanley Capital
International Emerging Markets Free Index (MSCI EMF Index) are unmanaged
benchmarks that assume reinvestment of dividends. The Lipper Emerging
Markets Funds Average excludes the effect of sales charges and the MSCI
EMF Index excludes the effect of fees and sales charges. The monthly
performance of the Lipper Emerging Markets Funds Average is used in the
Performance and Portfolio Overview. Investors cannot invest directly in an
average or an index.
+ The CDSL is 5% for periods of one year or less, and 4% since inception.
++ From May 30, 1996.
+++ From May 31, 1996.
(a) Represents the per share amount of net unrealized appreciation of
portfolio securities as of April 30, 1998.
16
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
This chart compares a $10,000 hypothetical investment made in Seligman
Henderson Emerging Markets Growth Fund, with and without the initial 4.75%
maximum sales charge for Class A shares, with the 4% contingent deferred sales
load ("CDSL") for Class B shares, and without the 1% CDSL for Class D shares,
since the commencement of operations on May 28, 1996, through April 30, 1998, to
a $10,000 hypothetical investment made in the Lipper Emerging Markets Funds
Average and the Morgan Stanley Capital International Emerging Markets Free Index
(MSCI EMF Index) for the same period. It is important to keep in mind that the
Index excludes the effect of fees or sales charges, and the Average excludes the
effect of sales charges.
[GRAPH OMITTED]
There are specific risks associated with global investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and rapid changes in political and economic conditions. Past
performance is not indicative of future investment results.
Largest Portfolio Changes
During the Six Months Ended April 30, 1998
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/98
- --------- -------- --------
Banco Rio de la Plata
(ADRs) (Argentina) ....................... 80,400 125,700
China Telecom (China) ...................... 520,000 520,000
Dimension Data Holdings
(South Africa) ........................... 184,000 184,000
Grupo Financiero
Banamex Accival
(Series B) (Mexico) ...................... 655,000 655,000
Magyar Tavkozlesi "Matav"
(ADRs) (Hungary) ......................... 55,000 55,000
New World Infrastructure
(China) .................................. 430,000 430,000
Pepsi-Gemex (GDRs)
(Mexico) ................................. 117,000 117,000
SanLuis (Mexico) ........................... 200,000 200,000
Telefonica de Argentina
(ADRs) (Argentina) ....................... 39,000 39,000
Telefonica del Peru (ADRs)
(Peru) ................................... 78,300 78,300
SHARES
---------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/98
- ---------- -------- --------
ALFA (Mexico) .............................. 207,900 --
Commercial International
Bank (Egypt) ............................. 54,000 --
Companhia Energetica de
Minas Gerais "CEMIG"
(ADRs) (Brazil) .......................... 20,000 44,500
Compania de
Telecomunicaciones de
Chile "CTC" (ADRs) (Chile) ............... 66,000 --
Desc (ADRs) (Mexico) ....................... 59,975 --
Formosa Growth Fund
(Taiwan) ................................. 51,000 51,000
Grupo Iusacell (ADRs)
(Mexico) ................................. 48,800 46,800
Metro Cash & Carry
(South Africa) ........................... 1,280,000 --
Perez (ADRs) (Argentina) ................... 111,810 --
Saudi Arabia Investment
Fund (Saudi Arabia) ...................... 158,400 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
17
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
Country Allocation
April 30, 1998
MSCI
EMF
FUND INDEX
------ ------
CENTRAL/SOUTHERN EUROPE ................................ 30.21% 14.98%
Czech Republic ...................................... -- 1.05
Estonia ............................................. 0.70 --
Greece .............................................. 5.62 4.19
Hungary ............................................. 7.29 1.38
Poland .............................................. 1.03 0.68
Portugal ............................................ 7.68 --
Russia .............................................. 5.60 4.76
Slovenia ............................................ 0.22 --
Turkey .............................................. 2.07 2.92
INDIAN SUBCONTINENT/AFRICA ............................. 17.18 23.27
Egypt ............................................... 1.84 --
India ............................................... 5.01 6.65
Israel .............................................. 1.68 2.62
Jordan .............................................. -- 0.12
Lebanon ............................................. 0.69 --
Pakistan ............................................ -- 0.66
South Africa ........................................ 7.96 13.12
Sri Lanka ........................................... -- 0.10
LATIN AMERICA .......................................... 33.26 38.78
Argentina ........................................... 5.81 4.36
Brazil .............................................. 10.94 16.14
Chile ............................................... 2.76 3.50
Columbia ............................................ -- 0.77
Mexico .............................................. 11.97 11.78
Peru ................................................ 1.78 1.17
Venezuela ........................................... -- 1.06
PACIFIC ................................................ 14.87 22.97
China ............................................... 4.77 0.79
Indonesia ........................................... -- 1.32
Malaysia ............................................ -- 6.17
Philippines ......................................... 1.96 1.62
South Korea ......................................... 1.23 2.31
Taiwan .............................................. 5.23 8.64
Thailand ............................................ 1.68 2.12
OTHER ASSETS LESS LIABILITIES .......................... 4.48 --
------ ------
TOTAL .................................................. 100.00% 100.00%
====== ======
Largest Industries
April 30, 1998
[The following table was represented as a bar chart in the printed material]
TELECOMMUNICATIONS $19,306,216
FINANCIAL SERVICES $14,346,196
CONSUMER GOODS AND SERVICES $10,618,613
ELECTRIC UTILITIES $ 9,835,860
RESOURCES $ 8,008,314
Regional Allocation
April 30, 1998
[The following table was represented as a pie chart in the printed material]
Other Assets Less Liabilities 4.48%
Latin America 33.26%
Central/Southern Europe 30.21%
Indian Subcontinent/Africa 17.18%
Pacific 14.87%
Largest Portfolio Holdings
April 30, 1998
SECURITY VALUE
- -------- ----------
Maillis (Greece) .......................................... $2,629,033
Telecomunicacoes Brasileiras
"Telebras" (ADRs) (Brazil) .............................. 2,571,562
Panamerican Beverages
(Class A) (Mexico) ...................................... 2,476,238
Petroleo Brasileiro "Petrobras"
(Brazil) ................................................ 2,451,723
Companhia de Saneamento Basico
do Estado Sao Paulo "SABESP"
(Brazil) ................................................ 2,421,998
IRSA Inversiones y Representaciones
(GDRs) (Argentina) ...................................... 2,410,250
Jeronimo Martins (Portugal) ............................... 2,228,365
Companhia Energetica de Minas
Gerais "CEMIG" (ADRs) (Brazil) .......................... 2,108,187
Grupo Financiero Banamex Accival
(Series B) (Mexico) ..................................... 2,033,011
Richter Gedeon (GDRs) (Hungary) ........................... 2,002,200
18
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
-------- ------------
COMMON STOCKS 95.42%
ARGENTINA 5.81%
Banco Rio de la Plata (ADRs)*
Provider of commercial and
investment banking services
(Financial Services) 125,700 $ 1,728,375
IRSA Inversiones y Representaciones
(GDRs)
Real estate developer
(Construction and Property) 62,000 2,410,250
Telefonica de Argentina (ADRs)
Provider of telecommunications
services (Telecommunications) 39,000 1,503,938
------------
5,642,563
------------
BRAZIL 10.94%
Companhia de Saneamento Basico
do Estado Sao Paulo "SABESP"
Provider of water treatment
and distribution services
(Electric Utilities) 10,144,000 2,421,998
Companhia Energetica de
Minas Gerais "Cemig" (ADRs)
Provider of electric utility
services (Electric Utilities) 44,500 2,108,187
Companhia Paranaense de
Energia "Copel" (ADRs)
Provider of electric utility
services (Electric Utilities) 76,000 1,083,000
Petroleo Brasileiro "Petrobras"
Oil and gas producer and
distributor (Resources) 9,700,000 2,451,723
Telecomunicacoes Brasileiras
"Telebras" (ADRs)
Provider of telecommunications
services (Telecommunications) 21,100 2,571,562
------------
10,636,470
------------
CHILE 2.76%
Distribucion y Servicio (ADRs)*
Supermarket operator
(Consumer Goods and Services) 60,700 1,069,837
Enersis (ADRs)
Provider of electric services
(Electric Utilities) 54,800 1,613,175
------------
2,683,012
------------
CHINA 4.77%
China Telecom*
Provider of cellular
telecommunication services
(Telecommunications) 520,000 986,514
Huaneng Power International
(ADRs)*
Developer and manufacturer
of coal-fired power plants
(Electric Utilities) 86,000 1,892,000
New World Infrastructure*
Developer and operator of
infrastructure projects
(Construction and Property) 430,000 923,985
Qingling Motors*
Manufacturer of
lightweight trucks
(Automotive Manufacturing) 1,930,000 834,420
------------
4,636,919
------------
EGYPT 1.84%
Paints and Chemical Industries
Manufacturer of industrial and
architectural paints and
printing inks (Manufacturing) 52,200 601,866
Suez Cement (GDRs)*+
Cement manufacturer
(Construction and Property) 58,000 1,183,200
------------
1,785,066
------------
ESTONIA 0.70%
Societie General Baltic Republics Fund
Investor in the Baltic
Republics (Financial Services) 3,200 678,400
------------
GREECE 5.62%
Alpha Credit Bank
Provider of banking services
(Financial Services) 15,000 1,582,575
Hellenic Telecommunication
Organization
Provider of telecommunications
services (Telecommunications) 27,500 787,565
- ----------
See footnotes on page 23.
19
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
-------- ------------
GREECE (continued)
Maillis
Producer of packaging
and packaging systems
(Manufacturing) 54,000 $ 2,629,033
Sarantis
Manufacturer and distributor
of cosmetics
(Drugs and Health Care) 30,000 466,811
------------
5,465,984
------------
HUNGARY 7.29%
Magyar Tavkozlesi "Matav" (ADRs)
Provider of telecommunications
services (Telecommunications) 55,000 1,622,500
MOL Magyar Olaj-es Gazipari
(GDRs)*+
Oil and gas producer and
distributor (Resources) 15,000 457,875
MOL Magyar Olaj-es Gazipari
(GDRs)
Oil and gas producer and
distributor (Resources) 45,000 1,356,750
OTP Bank (GDRs)+
Provider of commercial banking
services (Financial Services) 19,620 927,045
OTP Bank (GDRs)
Provider of commercial banking
services (Financial Services) 15,000 720,000
Richter Gedeon (GDRs)
Manufacturer of pharmaceuticals
and cosmetics (Drugs and
Health Care) 18,800 2,002,200
------------
7,086,370
------------
INDIA 5.01%
Hindalco Industries (GDRs)+
Producer of aluminum and
aluminum products (Metals) 45,000 866,250
ITC (GDRs)*+
Holding company with operations
in tobacco, hotels, financial
services, paper, packaging and
printing, real estate, and
international export
(Diversified) 44,000 1,012,000
Mahanagar Telephone Nigam
(GDRs)*+
Provider of telecommunications
services (Telecommunications) 60,000 967,500
Reliance Industries (GDRs)
Manufacturer of synthetic
fibers and petrochemicals
(Diversified) 50,000 456,250
State Bank of India (GDRs)
Provider of banking services
(Financial Services) 20,400 378,420
State Bank of India (GDRs)+
Provider of banking services
(Financial Services) 29,600 553,520
Videsh Sanchar Nigam (GDRs)*+
Provider of international
telecommunications services
(Telecommunications) 51,000 637,500
------------
4,871,440
------------
ISRAEL 1.68%
NICE-Systems (ADRs)*
Developer, manufacturer, and
distributor of voice and fax
management systems
(Telecommunications) 21,700 935,813
Tecnomatix Technologies*
Developer and retailer of
computer-aided production
engineering software
(Computer and Technology
Related) 27,200 695,300
------------
1,631,113
------------
LEBANON 0.69%
Banque Audi (GDRs)+
Commercial bank
(Financial Services) 24,600 666,660
------------
MEXICO 11.97%
Fomento Economico Mexicano
"Femsa" (Series B)*
Beverage and packaging
producer; retail store operator
(Consumer Goods and Services) 227,500 1,752,577
- ----------
See footnotes on page 23.
20
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
-------- ------------
MEXICO (continued)
Grupo Financiero Banamex
Accival (Series B)*
Provider of banking services
(Financial Services) 655,000 $ 2,033,011
Grupo Iusacell (ADRs)*
Provider of wireless
telecommunications services
(Telecommunications) 46,800 906,750
Grupo Televisa (GDRs)*
Provider of television and
other media services
(Leisure and Hotels) 44,700 1,832,700
Panamerican Beverages (Class A)
Producer of Coca-Cola and
other beverages (Consumer
Goods and Services) 62,100 2,476,238
Pepsi-Gemex (GDRs)
Vendor of Pepsi soft
drink products (Consumer
Goods and Services) 117,000 1,586,812
SanLuis
Manufacturer of auto parts;
operator of gold and silver mines
(Automotive Manufacturing) 200,000 1,048,354
------------
11,636,442
------------
PERU 1.78%
Telefonica del Peru (ADRs)
Provider of telecommunications
services (Telecommunications) 78,300 1,732,387
------------
PHILIPPINES 1.96%
Philippine Long Distance Telephone
Telephone utility
(Telecommunications) 30,000 801,242
Philippine Long Distance
Telephone (ADRs)
Telephone utility
(Telecommunications) 20,000 540,000
SM Prime Holdings
Developer and operator
of retail properties
(Construction and Property) 3,150,000 563,478
------------
1,904,720
------------
POLAND 1.03%
Powszechny Bank Kredytowy*
Provider of financial services
(Financial Services) 20,000 671,279
Prokom Software (GDRs)*
Provider of information
technology solutions
(Computer and Technology
Related) 19,100 329,953
------------
1,001,232
------------
PORTUGAL 7.58%
Jeronimo Martins
Retailer of food and
consumer products (Retailing) 48,332 2,228,365
Portugal Telecom
Provider of telecommunications
services (Telecommunications) 6,000 314,601
Portugal Telecom (ADRs)
Provider of telecommunications
services (Telecommunications) 24,000 1,290,000
Sonae Investimentos
Hypermarket operator (Retailing) 32,000 1,711,939
Telecel-Comunicacaoes Pessoais*
Cellular communications
operator (Telecommunications) 10,550 1,816,594
------------
7,361,499
------------
RUSSIA 5.60%
Gazprom (ADRs)
Agent for the extraction,
transportation, storage, and sale
of natural gas (Resources) 25,000 461,250
Lukoil Holding (ADRs)
Prospector, extractor, and
transporter of oil and gas
(Resources) 8,300 547,028
Mosenergo (ADRs)*
Producer and distributor of
electric and thermal energy
(Electric Utilities) 20,500 717,500
Nizhny Novgorod Telephone (RDCs)*+
Telephone utility
(Telecommunications) 13 1,296,750
- ----------
See footnotes on page 23.
21
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
-------- ------------
RUSSIA (continued)
Rostelecom (RDCs)*+
Provider of long distance and
international telecommunications
services (Telecommunications) 17 $ 595,000
Surgutneftegaz (ADRs)
Oil and natural gas provider
(Resources) 76,500 564,119
Tatneft (ADRs)
Oil and gas explorer and
producer (Resources) 65,000 1,259,375
------------
5,441,022
------------
SLOVENIA 0.22%
SKB Banka (GDRs)+
Provider of commercial, savings,
and investment banking
services (Financial Services) 14,000 213,500
------------
SOUTH AFRICA 7.96%
Barlow
Producer and distributor of
products used in building and
construction and other industries
(Construction and Property) 132,000 1,275,482
Dimension Data Holdings*
Investment holding company of
technology groupings including
communications, distribution,
software, services, interactive
technologies, and the Internet
(Computer and
Technology Related) 184,000 1,277,500
Liberty Life Association of Africa
Provider of life and health
insurance (Financial Services) 43,000 1,454,455
Sasol
Fuel and chemical producer
(Diversified) 93,000 938,186
South African Breweries
Producer of beer and other
beverages (Consumer Goods
and Services) 42,500 1,425,774
Standard Bank Investment
Provider of commercial banking
services (Financial Services) 23,000 1,360,301
------------
7,731,698
------------
SOUTH KOREA 1.23%
Samsung Electronics*
Manufacturer of consumer
and industrial electronics
and semiconductors
(Manufacturing) 21,000 1,162,739
Samsung Electronics (Rights)*
Manufacturer of consumer and
industrial electronics and
semiconductors (Manufacturing) 1,670 32,175
------------
1,194,914
------------
TAIWAN 5.23%
Formosa Growth Fund*
Closed-end fund investing
in Taiwan (Miscellaneous) 51,000 1,082,730
Hotung Investment Holdings
Investor in unlisted
technology-related companies
(Financial Services) 2,500,000 656,250
Siliconware Precision Industries
(GDRs)*
Integrated circuit packaging
(Industrial Goods and Services) 66,000 998,250
Synnex Technology International
(GDRs)*
Manufacturer of PCs and
peripherals (Consumer Goods
and Services) 57,000 1,296,750
Taiwan Opportunities Fund*
Closed-end fund investing
in Taiwan (Miscellaneous) 74,000 1,050,060
------------
5,084,040
------------
THAILAND 1.68%
Bangkok Bank
Provider of retail, commercial,
and corporate banking services
(Financial Services) 287,100 722,405
PTT Exploration and Production
Public Company
Producer of natural gas
(Resources) 86,000 910,194
------------
1,632,599
------------
- ----------
See footnotes on page 23.
22
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
-------- ------------
TURKEY 2.07%
Efes Sinai Yatirim Holding (GDRs)*+
Bottler and marketer of
Coca-Cola soft drinks
(Consumer Goods
and Services) 35,000 $ 643,125
Efes Sinai Yatirim Holding (GDRs)*
Bottler and marketer of
Coca-Cola soft drinks
(Consumer Goods and
Services) 20,000 367,500
Migros Turk
Retailer of food and consumer
products (Retailing) 1,018,750 998,375
------------
2,009,000
------------
TOTAL COMMON STOCKS
(Cost $82,193,875) 92,727,050
------------
PRINCIPAL
AMOUNT VALUE
--------- ------------
CORPORATE BONDS 0.10%
(Cost $92,712)
PORTUGAL 0.10%
Jeronimo Martins
0%, 12/30/2004 (Retailing) 16,875** $ 95,879
------------
TOTAL INVESTMENTS 95.52%
(Cost $82,286,587) 92,822,929
OTHER ASSETS
LESS LIABILITIES 4.48% 4,355,645
------------
NET ASSETS 100.00% $ 97,178,574
============
- ----------
* Non-income producing security.
** Principal amount reported in units of 1,000 Portuguese escudos.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
23
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Growth Opportunities Fund
PERFORMANCE REVIEW
For the six months ended April 30, 1998, Seligman Henderson Global Growth
Opportunities Fund posted a total return of 22.52% based on the net asset value
of Class A shares, outpacing the 16.72% total return of its peers, as measured
by the Lipper Global Funds Average. Stocks around the world, as measured by the
Morgan Stanley Capital International World Index (MSCI World Index), posted a
total return of 19.08% for the period.
The investment backdrop during the period was dominated by the Pacific region's
economic malaise and its consequences for the rest of the world. After the
attack on the Hong Kong dollar was rejected, and the IMF-led assistance averted
a widespread loan default in South Korea, global stock markets recovered
remarkably. Markets were driven higher by a combination of factors, including:
the containment of the Pacific region crisis; a reduction in global inflation
and interest rate expectations; the creation of abundant liquidity through
monetary expansion in the major economies; and the hope of substantial fiscal
stimulus in Japan.
Overall, Continental Europe provided the best returns as economic growth gained
momentum and inflation fell. In contrast, the Japanese market took another
tumble in March as the fiscal stimulus plans proved disappointing. Growth stocks
fared better than value stocks as the impact of the Pacific region contraction
resulted in downward revisions to corporate earnings elsewhere in the world.
PORTFOLIO STRATEGY
The Fund's portfolio remained broadly invested in the four major growth themes:
26% was invested in Productivity; 36% in Quality of Life; 26% in Consumer is
King; and the smallest portion of investments, 12%, in Global Trade. In the six
months ended April 30, 1998, we began to shift away from the higher-growth
Productivity theme toward the more stable growth offered by the Quality of Life
theme.
PRODUCTIVITY
o Within this theme, we reduced the portfolio's exposure to technology
stocks. As a result of excess capacity, reduced demand from the Pacific
region, and lower expenditures by US corporations, the outlook for many
technology sub-sectors, particularly hardware, worsened.
In response, we sold several stocks including Adaptec and Compaq Computer
in the US, and SGS Thomson Microelectronics, a French manufacturer of
semiconductor integrated circuits. While we have reduced the Fund's
investment in the operationally-leveraged commodity end of the technology
sector, we remain committed to software-related stocks such as Microsoft
in the US, Cap Gemini in France, and Meitec in Japan. With increasing
activity in preparation for the year 2000, we expect that the software
sector should still enjoy good demand.
[PHOTO OMITTED]
International Team: (from left) Ben Elwes, David Thornton, Michael Wood-Martin,
Peter Bassett, (seated) Stacey Navin, Nitin Mehta (Portfolio Manager), Kirsteen
Morrison. US Team: (not pictured) Marion S. Schultheis (Portfolio Manager),
Michelle Borre, Dave Levy, Richard R. Schmaltz.
FUND OBJECTIVE
Seligman Henderson Global Growth Opportunities Fund, which commenced operations
on November 1, 1995, seeks long-term capital appreciation by investing primarily
in the stocks of companies that have the potential to benefit from global
economic or social trends.
24
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Growth Opportunities Fund
Quality of Life
o In our search for more stable growth, several health care stocks were
added to the portfolio. The insurance/reinsurance sub-theme was also an
area that was expanded in the past six months.
The stable growth of the health care sub-theme provided the stage for
the addition of several stocks to the Fund: Eli Lilly and Bristol-Myers
Squibb in the US, Elan in Ireland, and Astra in Sweden. In addition, we
invested in Skandia Forsakrings in Sweden and Helvetia Patria in
Switzerland, both potential beneficiaries of the rising demand for retail
investment products throughout Europe. An earlier investment to exploit
this theme was Mediolanum in Italy, a marketer of mutual funds and other
financial services.
Consumer is King
o Within this theme, we shifted the portfolio's exposure away from the
Pacific region, where consumer confidence collapsed, in favor of
Continental Europe and the Americas, where consumption is still strong.
In particular, Centros Comerciales Continente, a "hypermarket" chain
operator in Spain, Hachette Filipacchi Medias, a magazine publisher in
France, Kroger, a supermarket chain in the US, and Panamerican Beverages,
a soft drink bottler in Mexico, were added to the portfolio in the past
six months.
Global Trade
o Major activity was seen in the sub-theme of global communications, where
there has been considerable growth. We have long argued the attraction of
telecommunications in the emerging markets, as these stocks often combine
the benefits of exciting growth with the stability of earnings found in
utilities.
With this in mind, we invested in Matav in Hungary, Telefonica de
Argentina in Argentina, and Hellenic Telecommunication Organization in
Greece. All should benefit from restructurings in preparation for
competition and the application of new technology to create value-added
products. These new holdings are additions to existing holdings, such as
Telebras in Brazil, Videsh Sanchar Nigam in India, and Grupo Iusacell in
Mexico.
SUMMARY
Most stock markets around the world have risen in the six months ended April 30,
1998, in response to a confluence of favorable events. In contrast, the near
future may be more mixed. Many of the positive effects of declining expectations
in terms of inflation and interest rates, combined with rising liquidity, are
already reflected in stock prices. However, the end of the long bull market does
not yet appear in sight. Excess manufacturing capacity in the Pacific region
should keep global inflation at bay for longer than many expected. Outside the
Pacific region, economic recessions do not seem likely.
As in the prior six-month period, we expect that growth in corporate earnings
will receive greater scrutiny. In the US and the UK, earnings growth could
attract greater attention as economic activity subsides to normal levels. In
Continental Europe, where interest rates are bottoming out and valuation levels
are peaking, further market gains will depend on good earnings growth. In the
Pacific region, a deflationary environment will likely make earnings growth more
prized. In summary, we remain positive on global growth stocks.
25
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
Investment Results Per Share
TOTAL RETURNS
For Periods Ended April 30, 1998
AVERAGE ANNUAL
-------------------------------
CLASS B
SINCE SINCE
SIX ONE INCEPTION INCEPTION
MONTHS* YEAR 4/22/96 11/1/95
--------- ------ ---------- ---------
Class A**
With Sales Charge 16.68% 26.22% n/a 17.73%
Without Sales Charge 22.52 32.45 n/a 20.07
Class B**
With CDSL+ 16.96 26.23 15.76% n/a
Without CDSL 21.96 31.23 17.03 n/a
Class D**
With 1% CDSL 20.96 30.23 n/a n/a
Without CDSL 21.96 31.23 n/a 19.12
Lipper Global Funds Average*** 16.72 27.15 17.87++ 19.96(a)
MSCI World Index*** 19.08 29.54 19.82++ 21.62(a)
NET ASSET VALUE
APRIL 30, 1998 OCTOBER 31, 1997 APRIL 30, 1997
-------------- ---------------- --------------
Class A $10.81 $9.20 $8.51
Class B 10.59 9.06 8.42
Class D 10.59 9.06 8.42
CAPITAL GAIN INFORMATION
For the Six Months Ended April 30, 1998
Paid $0.370
Realized 0.423
Unrealized 3.082(b)
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume the investment of
dividends and capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class B shares are calculated with and without the
effect of the maximum 5% contingent deferred sales load ("CDSL"), charged
on redemptions made within one year of the date of purchase, declining to
1% in the sixth year and 0% thereafter. Returns for Class D shares are
calculated with and without the effect of the 1% CDSL, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Global Funds Average and the Morgan Stanley Capital
International World Index (MSCI World Index) are unmanaged benchmarks that
assume reinvestment of dividends. The Lipper Global Funds Average excludes
the effect of sales charges and the MSCIWorld Index excludes the effect of
fees and sales charges. The monthly performance of the Lipper Global Funds
Average is used in the Performance and Portfolio Overview. Investors
cannot invest directly in an average or an index.
+ The CDSL is 5% for periods of one year or less, and 3% since inception.
++ From April 30, 1996.
(a) From October 31, 1995.
(b) Represents the per share amount of net unrealized appreciation of
portfolio securities as of April 30, 1998.
26
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
This chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Growth Opportunities Fund, with and without the initial 4.75%
maximum sales charge for Class A shares, and without the 1% contingent deferred
sales load ("CDSL") for Class D shares, since the commencement of investment
operations on November 1, 1995, through April 30, 1998, to a $10,000
hypothetical investment made in the Lipper Global Funds Average and the Morgan
Stanley Capital International World Index (MSCIWorld Index) for the same period.
It is important to keep in mind that the Index excludes the effect of fees or
sales charges, and the Average excludes the effect of sales charges.
[GRAPH OMITTED]
There are specific risks associated with global investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and rapid changes in political and economic conditions.
As shown on page 26, the performance of Class B shares will be greater
than or less than the performances shown for Class A shares and Class D shares,
based on the differences in sales charges and fees paid by shareholders. Past
performance is not indicative of future investment results.
Largest Portfolio Changes
During the Six Months Ended April 30, 1998
SHARES
------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/98
- --------- -------- --------
Actividades de Construccion
y Servicios (Spain) ...................... 68,000 68,000
American Telephone
& Telegraph (US) ......................... 30,200 30,200
Astra (Class A) (Sweden) ................... 129,415 129,415
Bristol-Myers Squibb (US) .................. 32,900 32,900
Centros Comerciales
Continente (Spain) ....................... 114,000 114,000
Coca-Cola Enterprises (US) ................. 57,300 57,300
Hachette Filipacchi Medias
(France) ................................. 7,300 7,300
Kroger (US) ................................ 56,300 56,300
Lilly (Eli) (US) ........................... 49,700 49,700
PolyGram (Netherlands) ..................... 36,840 36,840
SHARES
------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/98
- ---------- -------- --------
Compaq Computer (US) ....................... 82,400(1) --
Desc (ADRs)(Mexico) ........................ 123,274 --
MBNA (US) .................................. 66,900 68,325
Microsoft (US) ............................. 21,900 33,100(2)
Pfizer (US) ................................ 26,000 38,400
Richter Gedeon (GDRs)
(Hungary) ................................ 32,000 --
SGS-Thomson
Microelectronics (France) ................ 36,070 --
Sol Melia (Spain) .......................... 62,376 --
United Healthcare (US) ..................... 51,700 --
WorldCom (US) .............................. 81,200 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ----------
(1) Includes 41,200 shares received as a result of 2-for-1 stock split.
(2) Includes 21,200 shares received as a result of 2-for-1 stock split.
27
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
COUNTRY ALLOCATION
April 30, 1998
MSCI
WORLD
FUND INDEX
------ ------
CONTINENTAL EUROPE ..................................... 40.80% 23.93%
Austria ............................................. -- 0.20
Belgium ............................................. -- 0.74
Denmark ............................................. -- 0.48
Finland ............................................. 3.49 0.49
France .............................................. 6.72 4.25
Germany ............................................. 6.32 4.94
Greece .............................................. 0.84 --
Hungary ............................................. 1.45 --
Ireland ............................................. 1.43 0.25
Italy ............................................... 2.40 2.26
Netherlands ......................................... 4.73 2.78
Norway .............................................. 1.73 0.30
Portugal ............................................ -- 0.35
Spain ............................................... 5.08 1.62
Sweden .............................................. 4.21 1.55
Switzerland ......................................... 2.40 3.72
JAPAN .................................................. 6.53 10.56
LATIN AMERICA .......................................... 4.16 --
Argentina ........................................... 0.36 --
Brazil .............................................. 2.64 --
Mexico .............................................. 1.16 --
PACIFIC ................................................ 2.55 3.10
Australia ........................................... 0.36 1.21
China ............................................... 0.46 --
HongKong ............................................ -- 1.03
Indonesia ........................................... 0.23 --
Malaysia ............................................ -- 0.37
New Zealand ......................................... -- 0.12
Singapore ........................................... 0.49 0.37
South Korea ......................................... 0.22 --
Taiwan .............................................. 0.79 --
UNITED KINGDOM ......................................... 12.90 10.40
UNITED STATES .......................................... 29.75 49.60
OTHER .................................................. 1.42 2.41
India ............................................... 1.07 --
Russia .............................................. 0.35 --
Canada .............................................. -- 2.41
OTHER ASSETS LESS LIABILITIES .......................... 1.89 --
------ ------
TOTAL .................................................. 100.00% 100.00%
====== ======
Largest Industries
April 30, 1998
[The following table was represented as a bar chart in the printed material]
DRUGS AND HEALTH CARE $25,648,236
COMPUTER AND TECHNOLOGY RELATED $20,877,798
CONSUMER GOODS AND SERVICES $19,753,503
FINANCIAL SERVICES $18,997,047
TELECOMMUNICATIONS $18,662,973
Regional Allocation
April 30, 1998
[The following table was represented as a pie chart in the printed material]
United Kingdom 12.90%
Japan 6.53%
Latin America 4.16%
Pacific 2.55%
Continental Europe 40.80%
United States 29.75%
Other 1.42%
Other Assets Less Liabilities 1.89%
Largest Portfolio Holdings
April 30, 1998
SECURITY VALUE
- -------- ----------
Porsche (Germany) ......................................... $4,628,368
Nokia (Series A) (Finland) ................................ 4,534,989
Parity (UK) ............................................... 4,397,212
Pfizer (US) ............................................... 4,370,400
Cap Gemini (France) ....................................... 4,193,584
Accor (France) ............................................ 3,972,005
Travelers (US) ............................................ 3,753,853
Tomra Systems (Norway) .................................... 3,697,006
Adidas-Salomon (Germany) .................................. 3,692,656
L.M. Ericsson Telefon (Series B)
(Sweden) ................................................ 3,543,797
28
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
COMMON STOCKS 98.11%
ARGENTINA 0.36%
Telefonica de Argentina (ADRs)
Provider of telecommunications
services (Telecommunications) 20,000 $ 771,250
------------
AUSTRALIA 0.36%
Pacifica Group
Manufacturer of industrial
products, mainly automobile
components (Automotive
and Related) 215,300 589,460
Telstra*
Provider of telecommunications
services (Telecommunications) 75,000 175,378
------------
764,838
------------
BRAZIL 2.64%
Companhia Energetica de Minas
Gerais "Cemig" (ADRs)
Provider of electrical power
(Electric and Gas Utilities) 18,100 857,487
Companhia Paranaense de
Energia "Copel" (ADRs)
Provider of electric services and
equipment (Electric and Gas
Utilities) 52,000 741,000
Petroleo Brasileiro "Petrobras"
(ADRs)
Producer and distributor of
oil, petrochemicals, and gas
(Resources) 79,600 2,014,318
Telecomunicacoes Brasileiras
"Telebras" (ADRs)
Provider of telecommunications
services (Telecommunications) 16,650 2,029,219
------------
5,642,024
------------
CHINA 0.46%
Huaneng Power International (ADRs)*
Developer and manufacturer
of coal-fired power plants
(Electric and Gas Utilities) 45,000 990,000
------------
FINLAND 3.49%
Nokia (Series A)
Developer and manufacturer
of cellular systems and equipment
(Telecommunications) 67,510 4,534,989
Raision Tehtaat
Processor and marketer
of food, chemicals, and animal
feed (Consumer Goods
and Services) 15,900 2,918,261
------------
7,453,250
------------
FRANCE 6.72%
Accor
Hotel operator and
provider of related services
(Entertainment and Leisure) 14,583 3,972,005
Cap Gemini
Provider of computer
consulting services (Computer
and Technology Related) 32,311 4,193,584
Genset (ADRs)*
Biomedical research company
(Drugs and Health Care) 36,000 1,094,625
Hachette Filipacchi Medias
Printer and publisher of magazines
and newspapers; online content
provider; distributor of cable radio
(Publishing) 7,300 1,964,055
Valeo
Manufacturer of automobile
components (Automotive
and Related) 31,698 3,150,046
------------
14,374,315
------------
GERMANY 6.32%
Adidas-Salomon
Manufacturer and marketer of
sporting goods (Retailing) 22,330 3,692,656
Lufthansa
Airline services worldwide;
operator of Penta hotels
(Transportation) 128,000 2,989,755
Metro
Department store operator
(Retailing) 44,400 2,200,223
Porsche*
Manufacturer of luxury sports cars
(Automotive and Related) 1,835 4,628,368
------------
13,511,002
------------
- ----------
See footnotes on page 34.
29
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
GREECE 0.84%
Hellenic Telecommunication
Organization
Provider of telecommunications
services (Telecommunications) 63,000 $ 1,804,239
------------
HUNGARY 1.45%
Magyar Tavkozlesi "Matav" (ADRs)*
Provider of telecommunications
services (Telecommunications) 56,700 1,672,650
MOL Magyar Olaj-es Gazipari
(GDRs)*+
Oil and gas producer and
distributor (Resources) 46,500 1,419,413
------------
3,092,063
------------
INDIA 1.07%
State Bank of India (GDRs)+
Provider of banking services
(Financial Services) 42,300 791,010
Videsh Sanchar Nigam (GDRs)+
Provider of international
telecommunications services
(Telecommunications) 120,150 1,501,875
------------
2,292,885
------------
INDONESIA 0.23%
Gulf Indonesia Resources*
Developer and producer of
oil and natural gas (Resources) 32,000 492,000
------------
IRELAND 1.43%
Elan (ADRs)*
Developer, manufacturer,
and marketer of pharmaceutical
delivery systems (Drugs
and Health Care) 49,275 3,061,209
------------
ITALY 2.40%
Aeroporti di Roma
Manager, operator, and
developer of airfields and
terminals (Transportation) 158,650 2,221,010
Mediolanum*
Life insurer; provider of
a wide range of financial
services (Financial Services) 97,000 2,907,536
------------
5,128,546
------------
JAPAN 6.53%
Bellsystem 24
Telemarketer (Business Goods
and Services) 8,400 1,160,320
Daitec
Developer of point-of-sale
systems for Nippon Oil
(Business Goods and Services) 38,700 626,002
Diamond Computer Service
Provider of data processing
and software development
services (Computer and
Technology Related) 59,000 887,785
H.I.S
Travel agency specializing
in overseas and package tours
(Entertainment and Leisure) 46,000 719,859
Hogy Medical
Producer of disposable surgical
gowns and medical supplies
(Drugs and Health Care) 32,300 976,910
Keyence
Manufacturer of detection
devices and measuring control
equipment (Electronics) 11,300 1,514,998
Kyocera
Supplier of semiconductor
packaging, capacitors, and
cellular components
(Electronics) 30,000 1,566,415
Meitec
Provider of software engineering
services (Computer and
Technology Related) 59,100 1,934,206
Nomura Securities
Securities firm
(Financial Services) 140,000 1,701,087
Sanyo Shinpan Finance
Consumer finance company
(Financial Services) 21,900 856,788
Secom
Security services pioneer
(Support Services) 23,000 1,349,735
Softbank
PC wholesaler (Computer
and Technology Related) 14,600 670,052
------------
13,964,157
------------
- ----------
See footnotes on page 34.
30
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
MEXICO 1.16%
Grupo Iusacell (ADRs)*
Provider of wireless
telecommunications services
(Telecommunications) 42,100 $ 815,688
Panamerican Beverages (Class A)
Producer of Coca-Cola and
other beverages (Consumer
Goods and Services) 41,800 1,666,775
------------
2,482,463
------------
NETHERLANDS 4.73%
Elsevier
Global printer and publisher
of professional trade journals
and consumer magazines
(Publishing) 117,615 1,774,201
Gucci Group
Manufacturer and marketer of
luxury apparel and accessories
(Consumer Goods and Services) 27,405 1,276,045
Koninklijke KNP BT
Producer of paper, corporate
graphics, and packaging products
(Business Goods and Services) 73,060 2,005,455
Philips Electronics
Consumer and industrial
electronics (Electronics) 40,080 3,528,483
PolyGram
Producer, marketer, and
distributor of recorded music,
film, television, and video
programming (Entertainment
and Leisure) 36,840 1,519,589
------------
10,103,773
------------
NORWAY 1.73%
Tomra Systems
Provider of recycling systems
used mainly for beverage
containers and crates
(Business Goods and Services) 115,000 3,697,006
------------
RUSSIA 0.35%
Tatneft (ADRs)
Oil and gas explorer and
producer (Resources) 39,000 755,625
------------
SINGAPORE 0.49%
Advanced Systems Automation
Manufacturer of machines which
produce packaging for the
semiconductor industry
(Manufacturing and Industrial
Equipment) 466,000 506,170
Electronic Resources
Distributor of electronic
components and computer
peripherals (Electronics) 500,000 543,101
------------
1,049,271
------------
SOUTH KOREA 0.22%
Samsung Electronics (GDRs)*
Manufacturer of consumer and
industrial electronics and
semiconductors (Electronics) 17,700 460,200
------------
SPAIN 5.08%
Actividades de Construccion
y Servicios
Designer and builder of public
works projects, residential homes,
and other buildings
(Construction and Property) 68,000 2,229,435
Aguas de Barcelona
Drinking water supplier;
waste management
(Consumer Goods and Services) 53,445 3,045,389
Aguas de Barcelona (Rights)*
Drinking water supplier;
waste management
(Consumer Goods and Services) 485 26,889
Centros Comerciales Continente
Hypermarket chain selling
groceries, kitchen appliances,
auto accessories, and clothing
(Retailing) 114,000 2,683,584
Tabacalera (Class A)
Manufacturer and marketer
of tobacco products (Tobacco) 133,300 2,866,949
------------
10,852,246
------------
SWEDEN 4.21%
Astra (Class A)
Developer, manufacturer, and
marketer of pharmaceuticals
(Drugs and Health Care) 129,415 2,655,677
- ----------
See footnotes on page 34.
31
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
SWEDEN (continued)
Autoliv (SDRs)
Manufacturer and worldwide
retailer of automobile airbags
and other safety equipment
(Automotive and Related) 8,400 $ 254,766
L.M. Ericsson Telefon (Series B)
Manufacturer of telecom-
munications equipment
(Telecommunications) 67,300 3,543,797
Kalmar Industries
Manufacturer of forklifts and
special lift trucks (Manufacturing
and Industrial Equipment) 83,600 1,348,683
Skandia Forsakrings
Provider of insurance,
reinsurance, savings and
pension, and banking services
(Financial Services) 17,300 1,203,451
------------
9,006,374
------------
SWITZERLAND 2.40%
Helvetia Patria Holding
Provider of life, property, and
casualty insurance (Financial
Services) 1,945 2,227,297
Sairgroup
International airline operator
(Transportation) 2,221 2,901,200
------------
5,128,497
------------
TAIWAN 0.79%
Hotung Investment Holdings
Investor in unlisted
technology-related companies
(Financial Services) 2,400,000 630,000
Siliconware Precision
Industries (GDRs)*
Manufacturer and distributor
of electronic components
(Electronics) 28,000 423,500
Synnex Technology
International (GDRs)*
Manufacturer of PCs and
peripherals (Computer and
Technology Related) 28,400 646,100
------------
1,699,600
------------
UNITED KINGDOM 12.90%
Airtours
Tour operator (Entertainment
and Leisure) 170,000 1,492,706
Bodycote International
Diversified manufacturer and
distributor (Industrial Goods
and Services) 125,000 2,508,750
British Biotech
Biotechnology company
(Drugs and Health Care) 300,000 299,796
CRT Group
Provider of training and
recruitment services; publisher
of multimedia products
(Support Services) 350,000 2,569,796
Dixons Group
Consumer electronics retailer
(Retailing) 90,000 861,379
Games Workshop Group
Manufacturer and retailer
of specialty games (Retailing) 150,000 2,038,359
Granada Group
Television group with additional
leisure interests including hotels
(Entertainment and Leisure) 128,800 2,216,651
Halma
Producer of fire detection and
security equipment
(Electronics) 503,066 1,114,826
Ladbroke Group
Leisure group with interests
in hotels and gaming
(Entertainment and Leisure) 375,000 2,071,287
Parity
Provider of computer software
and consulting services
(Computer and
Technology Related) 337,500 4,397,212
Pizza Express
Operator of restaurant
chain (Restaurants) 245,000 3,194,099
Rolls Royce
Aerospace; power generation,
transmission, and distribution
systems (Aerospace) 350,000 1,646,367
- ----------
See footnotes on page 34.
32
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
UNITED KINGDOM (continued)
WPP Group
Provider of worldwide
marketing services, including
advertising, public relations,
and market research (Business
Goods and Services) 500,000 $ 3,173,569
------------
27,584,797
------------
UNITED STATES 29.75%
American International Group
Commercial and industrial
insurer; financial services
(Financial Services) 19,850 2,611,516
American Telephone & Telegraph
Provider of communication
services and products
(Telecommunications) 30,200 1,813,888
Bristol-Myers Squibb
Developer and manufacturer of
health and personal care
products (Drugs and Health
Care) 32,900 3,483,288
Cardinal Health
Distributor of pharmaceutical
products (Drugs and
Health Care) 32,500 3,128,125
Coca-Cola Enterprises
Bottler and distributor
of Coca-Cola products
(Consumer Goods and Services) 57,300 2,163,075
ConAgra
Developer and manufacturer
of prepared foods and
agricultural products (Consumer
Goods and Services) 38,300 1,117,881
Dayton Hudson
General merchandise retailer,
specializing in large stores
(Retailing) 38,500 3,361,531
Disney, Walt
Theme parks and hotel operator;
film production (Entertainment
and Leisure) 25,000 3,107,812
General Electric
Supplier of electrical equipment
and other industrial and
consumer products (Diversified) 36,700 3,124,087
Hewlett-Packard
Manufacturer of computers
and peripherals (Computer
and Technology Related) 35,300 2,658,531
Intel
Manufacturer of microprocessors
and FLASH memory circuits
(Computer and Technology
Related) 31,000 2,506,156
Interpublic Group of Companies
Global advertising through
agencies in various countries
(Business Goods and Services) 55,350 3,535,481
Kroger*
Operator of supermarkets and
convenience stores (Consumer
Goods and Services) 56,300 2,357,563
Lilly (Eli)
Developer and manufacturer
of pharmaceuticals (Drugs and
Health Care) 49,700 3,457,256
MBNA
Issuer of credit cards; deposit,
loan, and transaction processing
(Financial Services) 68,325 2,314,509
Merck
Developer and manufacturer
of pharmaceuticals (Drugs
and Health Care) 25,900 3,120,950
Microsoft*
Producer of computer
software (Computer and
Technology Related) 33,100 2,984,172
PepsiCo
Manufacturer and marketer
of soft drinks and consumer
products (Consumer Goods
and Services) 64,500 2,559,844
- ----------
See footnotes on page 34.
33
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Pfizer
Ethical drugs; hospital products;
and specialty chemicals
(Drugs and Health Care) 38,400 $ 4,370,400
Procter & Gamble
Manufacturer and distributor
of household and personal
care products (Consumer
Goods and Services) 31,900 2,621,781
Travelers
Provider of broad-based financial
services (Financial Services) 61,350 3,753,853
Xerox
Developer, manufacturer, and
marketer of office automation
products (Business Goods
and Services) 30,500 3,461,750
------------
63,613,449
------------
VALUE
------------
TOTAL INVESTMENTS 98.11%
(Cost $148,272,446) $209,775,079
OTHER ASSETS
LESS LIABILITIES 1.89% 4,050,554
------------
NET ASSETS 100.00% $213,825,633
============
- ----------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
34
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
PERFORMANCE REVIEW
For the six months ended April 30, 1998, Seligman Henderson Global Smaller
Companies Fund posted a total return of 15.81% based on the net asset value of
Class A shares. In the same period, the Fund's peers, as measured by the Lipper
Global Small Cap Funds Average, posted a total return of 11.05%, and the Salomon
Brothers World Extended Market Index posted a total return of 12.10%.
PORTFOLIO STRATEGY
United States
o During the period, the performance of smaller companies as a whole again
lagged large companies. Following the consistent underperformance of
smaller companies in late 1997, February 1998 was a strong month for small
caps. However, by April, the performance of small caps was once again
disappointing.
While expectations for earnings growth of smaller companies may be better,
and valuations were certainly more attractive than the valuations of large
companies, investors and liquidity flows continued to focus on larger
companies.
Overall, the portfolio's exposure to the US rose from 43% at the beginning
of the period to 45% in late April. It is unlikely that this will increase
in the near term, as the outlook for European small-cap markets appears
more attractive.
United Kingdom
o During the period, the UK equity market was dominated by liquidity flows,
and share buybacks in the first quarter of 1998 exceeded those for all of
1997. This proved to be a powerful force for large companies, making the
outperformance of the smaller companies thus far in 1998 even more
impressive. However, in the six months ended April 30, 1998, smaller
companies rose 20.9% compared to the 23.8% rise experienced by larger
companies as measured by the Salomon Brothers World Indices. Recent
evidence of a slowing economy and a weaker currency has reduced the need
for an immediate increase in interest rates, and could give way to a
period of solid performance from less highly rated smaller companies.
FUND OBJECTIVE
Seligman Henderson Global Smaller Companies Fund, which commenced investment
operations on September 9, 1992, seeks long-term capital appreciation by
investing in smaller-company stocks in the US and around the world.
[PHOTO OMITTED]
International Team: (from left) Andrew McNally, William Garnett, Heather
Manners, Andrew Stack, (seated) Miranda Richards, Iain C. Clark (Portfolio
Manager)
[PHOTO OMITTED]
US Team: (from left) Rick Ruvkun, Sonia Thomas (Administrative Assistant), Bruce
Zirman, Hilary Shane, Ted Hillenmeyer, (seated) Arsen Mrakovcic (Portfolio
Manager)
35
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
The portfolio's weighting in the UK rose from 18% at October 31, 1997, to
20% at the end of April. The portfolio's significant overweighting
compared to the Salomon Brothers World Extended Market Index will remain
in place until prospects begin to improve elsewhere in the world. The Fund
continues to emphasize companies in the service sector that have visible
earnings growth and pricing power -- crucial traits in an environment of
low inflation.
Continental Europe
o Both small and large companies performed very well in Continental Europe
in the six months ended April 30, 1998. However, here again, small
companies fared less well in relative terms, while in absolute terms,
performance was good.
The portfolio's weighting in Continental Europe decreased from 25.7% at
the end of October 1997 to 23.8% at April 30, 1998. This decrease was the
result of changes in individual portfolio holdings rather than a regional
allocation decision. Several new stocks were added to the portfolio during
the period: Etam Developpement, a French women's fashion retailer, and
Genset, also in France, which specializes in gene mapping. Going forward,
we expect to increase the portfolio's weighting in Continental Europe, as
the region offers the best growth/valuation combination for smaller
companies.
Japan
o The economic background in Japan deteriorated during the past six months,
as domestic problems were joined by weakness in the export market of the
Pacific region. The fiscal stimulus packages announced by the government
failed to meet investor expectations, which further depressed investor
sentiment. Smaller companies were particularly weak in the final two
months of 1997, although they recovered somewhat in the first quarter of
1998. Overall, in the past six months, smaller companies in Japan were the
weakest regionally, exacerbated by the weakening yen against the US
dollar.
The portfolio's weighting in Japan fell from 8% at October 31, 1997, to
4.5% at April 30, 1998 -- an underweighted position compared to the
Salomon Brothers World Extended Market Index. We reduced the portfolio's
exposure to the heavily cyclical companies, while we added holdings with
prospects for steady growth, such as Nippon Broadcasting System. Looking
forward, it is unlikely that we will increase the portfolio's exposure to
this region until there is clear evidence of economic recovery.
Pacific Region
o The decline of the Pacific markets that began in the summer of 1997 showed
no signs of abating in the final months of the year. Further, the first
weeks of January brought another round of declines in many markets.
Thereafter, the region bounced sharply as the expected economic and
financial meltdown failed to materialize. However, this hiatus proved
short-lived, as the reality of the economic, political, and market
situations hit investors, and markets began to lose some of their 1998
gains. Small caps fared particularly poorly during the period.
We believe it is likely that the region will remain depressed for some
time, especially if evidence of a slowdown in China appears. A slowdown
will ignite fears of another round of currency weakness and growing
political uncertainty.
The portfolio's weighting in the region was reduced to 2.1% at April 30,
1998. This below-index weighting is unlikely to be increased in the
foreseeable future, as we believe it will be a while before compelling
investment opportunities in the small-cap arena emerge.
SUMMARY
In the last six months, the equity markets have become increasingly volatile.
Among small-capitalization companies, valuations in many regions are attractive,
with higher earnings growth forecasts than the forecasts for
large-capitalization companies. Although there are tentative signs that
investors are beginning to recognize this, it is far from becoming an
established trend. Indeed, as long as corporate activity remains one of the
primary focuses of investors, it will be difficult to see small caps
consistently outperforming large caps.
36
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
Country Allocation
April 30, 1998
SALOMON
BROTHERS
WORLD
FUND EM INDEX
------- ---------
CONTINENTAL EUROPE ..................................... 23.79% 17.78%
Austria ............................................. 0.63 0.11
Belgium ............................................. 0.97 0.50
Denmark ............................................. 2.07 0.31
Finland ............................................. 1.31 0.49
France .............................................. 6.22 2.82
Germany ............................................. 2.27 3.19
Ireland ............................................. -- 0.27
Italy ............................................... 0.68 1.72
Netherlands ......................................... 4.06 2.38
Norway .............................................. 0.79 0.29
Spain ............................................... -- 1.15
Sweden .............................................. 2.31 1.25
Switzerland ......................................... 2.48 3.30
JAPAN .................................................. 4.53 6.97
PACIFIC ................................................ 2.09 2.54
Australia ........................................... 0.69 1.16
Hong Kong ........................................... 0.63 0.94
Malaysia ............................................ -- 0.18
New Zealand ......................................... 0.05 0.08
Philippines ......................................... 0.07 --
Singapore ........................................... 0.32 0.18
South Korea ......................................... 0.08 --
Taiwan .............................................. 0.16 --
Thailand ............................................ 0.09 --
UNITED KINGDOM ......................................... 20.02 11.83
UNITED STATES .......................................... 45.20 58.57
OTHER .................................................. 1.44 2.31
Bermuda ............................................. 0.11 --
Canada .............................................. 1.03 2.31
Chile ............................................... 0.07 --
India ............................................... 0.18 --
Israel .............................................. 0.05 --
OTHER ASSETS LESS LIABILITIES .......................... 2.93 --
------ ------
TOTAL .................................................. 100.00% 100.00%
====== ======
Largest Industries
April 30, 1998
[The following table was represented as a bar chart in the printed material]
BUSINESS SERVICES $103,847,298
MANUFACTURING $95,400,241
CONSUMER GOODS AND SERVICES $79,111,458
RETAILING $73,087,409
DRUGS AND HEALTH CARE $69,495,547
Regional Allocation
April 30, 1998
[The following table was represented as a pie chart in the printed material]
United Kingdom 20.02%
Japan 4.53%
Pacific 2.09%
United States 45.20%
Continental Europe 23.79%
Other 1.44%
Other Assets Less Liabilities 2.93%
Largest Portfolio Holdings
April 30, 1998
SECURITY VALUE
- -------- -----------
Ashtead Group (UK) ........................................ $17,929,200
CMG (Netherlands) ......................................... 16,707,920
Parity (UK) ............................................... 15,699,674
AccuStaff (US) ............................................ 14,669,288
Montupet (France) ......................................... 13,947,481
F.I. Group (UK) ........................................... 13,916,227
Pizza Express (UK) ........................................ 12,154,523
IBC Group (UK) ............................................ 12,137,751
L'Europeenne d'Extincteurs (France) ....................... 11,903,316
CRT Group (UK) ............................................ 11,527,372
37
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
Investment Results Per Share
TOTAL RETURNS
For Periods Ended April 30, 1998
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------
CLASS A CLASS B CLASS D
SINCE SINCE SINCE
SIX ONE FIVE INCEPTION INCEPTION INCEPTION
MONTHS* YEAR YEARS 9/9/92 4/22/96 5/3/93
------ ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Class A**
With Sales Charge 10.30% 22.06% 18.87% 20.21% n/a n/a
Without Sales Charge 15.81 28.11 20.02 21.26 n/a n/a
Class B**
With CDSL+ 10.40 22.16 n/a n/a 10.93% n/a
Without CDSL 15.40 27.16 n/a n/a 12.26 n/a
Class D**
With 1% CDSL 14.33 26.15 n/a n/a n/a n/a
Without CDSL 15.33 27.15 n/a n/a n/a 19.05%
Lipper Global Small Cap Funds Average*** 11.05 23.22 14.88 16.23++ 10.52(a) 14.88(b)
Salomon Brothers World EM Index*** 12.10 27.44 12.75 14.21+++ 12.16(a) 12.75(b)
</TABLE>
NET ASSET VALUE
APRIL 30, 1998 OCTOBER 31, 1997 APRIL 30, 1997
-------------- ---------------- --------------
Class A $17.35 $15.62 $14.12
Class B 16.62 15.04 13.65
Class D 16.62 15.05 13.65
CAPITAL GAIN INFORMATION
For the Six Months Ended April 30, 1998
Paid $0.627
Realized 0.267
Unrealized 2.966(c)
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume the investment of
dividends and capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class B shares are calculated with and without the
effect of the maximum 5% contingent deferred sales load ("CDSL"), charged
on redemptions made within one year of the date of purchase, declining to
1% in the sixth year and 0% thereafter. Returns for Class D shares are
calculated with and without the effect of the 1% CDSL, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Global Small Cap Funds Average and the Salomon Brothers World
Extended Market Index (Salomon Brothers World EM Index) are unmanaged
benchmarks that assume reinvestment of dividends. The Lipper Global Small
Cap Funds Average excludes the effect of sales charges, and the Salomon
Brothers World EM Index excludes the effect of fees and sales charges.The
monthly performance of the Lipper Global Small Cap Funds Average is used
in the Performance and Portfolio Overview. Investors cannot invest
directly in an average or an index.
+ The CDSL is 5% for periods of one year or less, and 3% since inception.
++ From September 10, 1992.
+++ From August 31, 1992.
(a) From April 30, 1996.
(b) From April 30, 1993.
(c) Represents the per share amount of net unrealized appreciation of
portfolio securities as of April 30, 1998.
38
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
This chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Smaller Companies Fund Class A shares, with and without the
initial 4.75% maximum sales charge, since the commencement of investment
operations on September 9, 1992, through April 30, 1998, to a $10,000
hypothetical investment made in the Lipper Global Small Cap Funds Average and
the Salomon Brothers World Extended Market Index (Salomon Brothers World EM
Index) for the same period. It is important to keep in mind that the Indices
exclude the effect of fees or sales charges, and the Average excludes the effect
of sales charges.
[GRAPH OMITTED]
There are specific risks associated with global investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and rapid changes in political and economic conditions.
As shown on page 38, the performances of Class B and D shares will be
greater than or less than the performance shown for Class A shares, based on the
differences in sales charges and fees paid by shareholders. Past performance is
not indicative of future investment results.
Largest Portfolio Changes
During the Six Months Ended April 30, 1998
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/98
- --------- -------- --------
Barnes & Noble (US) ........................ 147,800 147,800
Benckiser (Series B)
(Netherlands) ............................ 123,400 123,400
Coinmach Laundry (US) ...................... 223,000 236,100
EduTrek International
(Class A) (US) ........................... 187,700 187,700
Etam Developpement
(France) ................................. 82,963 82,963
Hearst-Argyle Television
(Class A)(US) ............................ 152,400 152,400
McDermott
International (US) ....................... 121,800 121,800
Scherer (R.P.) (US) ........................ 122,300 122,300
Sinclair Broadcast
Group (Class A) (US) ..................... 66,000 66,000
UCAR International (US) .................... 272,000 272,000
SHARES
---------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/98
- ---------- -------- --------
AmeriSource Health
(Class A) (US) .......................... 151,600 --
BDM International (US) .................... 175,000 --
Budget Group (US) ......................... 284,800 65,200
Ceridian (US) ............................. 167,800 186,900
Dominick's
Supermarkets (US) ....................... 150,000 --
FactSet Research
Systems (US) ............................ 229,000 271,000
NCS HealthCare
(Class A) (US) .......................... 210,000 110,000
Rauma (Finland) ........................... 388,100 65,450
Source Services (US) ...................... 300,000(1) --
Universal Outdoor
Holdings (US) ........................... 196,400 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ----------
(1) Includes 100,000 shares received as a result of a 3-for-2 stock split.
39
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
COMMON STOCKS 96.17%
AUSTRALIA 0.69%
BRL Hardy
Owner and operator of
vineyards; producer and
distributor of wines (Consumer
Goods and Services) 320,000 $ 1,114,108
CSL
Developer, manufacturer,
and marketer of human and
veterinary pharmaceutical and
diagnostic products (Medical
Products and Technology) 143,000 984,588
Futuris
Mini-conglomerate with
interests in automobile
components, building
materials, and financial
services (Automotive Parts
Manufacturing) 760,822 761,055
HIH Winterthur International
Holdings
General insurance provider
(Financial Services) 518,800 1,071,617
Hoyts Cinemas Group
Owner and operator of
movie theaters (Media) 595,000 966,206
National Foods
Marketer of dairy products;
fruit juice processor; producer
of food packaging (Consumer
Goods and Services) 570,000 1,018,170
Pasminco
Explorer, producer, and
developer of lead, zinc,
and silver mines (Metals) 852,000 896,535
Henry Walker Group
Provider of civil engineering
and mining services
(Support Services) 607,500 797,095
------------
7,609,374
------------
AUSTRIA 0.63%
Bau Holdings
(Voting Preference Shares)
Construction and civil
engineering (Construction
and Property) 103,250 4,780,282
Bau Holdings
Construction and civil engineering
(Construction and Property) 37,894 2,213,270
------------
6,993,552
------------
BELGIUM 0.97%
Telinfo
Developer of telecommunications
network for businesses
(Telecommunications) 119,040 10,763,401
------------
BERMUDA 0.11%
Dairy Farm International
Holdings
International food retailer,
manufacturer, and wholesaler
(Retailing) 924,000 1,182,720
------------
CANADA 1.03%
DUSA Pharmaceuticals*
Developer of photodynamic
therapy and photodetection
(Drugs and Health Care) 170,000 2,252,500
Finning International
Lessor of construction
equipment (Construction and
Property) 210,000 2,172,135
FirstService*
Provider of property
management and
business services
(Business Services) 165,500 1,980,828
Tarragon Oil and Gas*
Explorer, developer, and
producer of oil and gas
(Resources) 370,000 2,560,017
Teleglobe
Owner and operator of a
worldwide telecommunications
network (Telecommunications) 55,000 2,402,418
------------
11,367,898
------------
CHILE 0.07%
Distribucion y Servicio (ADRs)*
Supermarket operator (Retailing) 45,400 800,175
------------
- ----------
See footnotes on page 54.
40
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
DENMARK 2.07%
Danske Traelastkompagni
Timber supply company
(Construction and Property) 85,981 $ 9,162,337
Sydbank
Commercial financial services
provider (Financial Services) 109,700 6,117,175
Thorkild Kristensen
Property development
(Construction and Property) 84,811 7,613,918
------------
22,893,430
------------
FINLAND 1.31%
Rauma
Manufacturer of forestry-related
machinery (Capital Goods) 65,450 1,225,284
Tamro (Series A)
Pharmaceutical distributor for
Scandinavia and the Baltics
(Drugs and Health Care) 1,127,230 8,068,711
Valmet
Manufacturer of paper and
pulp machinery
(Capital Goods) 313,290 5,192,319
------------
14,486,314
------------
FRANCE 6.04%
ECIA
Manufacturer of automobile
components (Automotive Parts
Manufacturing) 30,248 9,510,464
Etam Developpement*
Retailer of women's clothing
and intimate apparel (Retailing) 82,963 7,830,990
Genset (ADRs)*
DNA technology firm seeking
to identify and patent genes
and regulatory regions related
to specific diseases (Drugs and
Health Care) 115,000 3,496,719
IMS International Metal Service
Distributor and broker of
specialized metal
products (Metals) 123,170 1,924,052
L'Europeenne d'Extincteurs++
Manufacturer and distributor of
fire extinguishers
(Manufacturing) 142,402 11,903,316
L'Europeenne d'Extincteurs
(Warrants)*
Manufacturer and distributor
of fire extinguishers
(Manufacturing) 21,908 243,928
Montupet
Manufacturer of automobile
components (Automotive Parts
Manufacturing) 41,021 13,947,481
Rexel
European electrical distributor
(Electrical Distribution) 6,900 2,769,173
Rubis
Chemical storage and distribution
company (Transportation) 67,099 1,882,229
Sylea
Manufacturer of automobile
components (Automotive Parts
Manufacturing) 86,233 7,810,052
Virbac
Manufacturer of veterinary
drugs and products
(Veterinary Products) 66,532 5,450,814
------------
66,769,218
------------
GERMANY 1.65%
Gerry Weber International*
Designer and manufacturer
of women's apparel
(Manufacturing) 4,281 117,990
Moebel Walther
Retailer of furniture and related
products (Retailing) 174,470 7,382,917
Tarkett
Manufacturer and distributor
of hardwood flooring
(Consumer Goods
and Services) 309,420 10,681,537
------------
18,182,444
------------
HONG KONG 0.63%
Esprit Holdings
Retail and wholesale distributor
of high-quality fashion
products (Retailing) 1,511,000 599,642
- ----------
See footnotes on page 54.
41
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
HONG KONG (continued)
Global-Tech Appliances*
Designer, developer, and
manufacturer of household
appliances (Consumer Goods
and Services) 39,800 $ 781,075
Johnson Electric Holdings
Designer, manufacturer, and
marketer of micromotors
(Electronics) 422,000 1,429,632
Li & Fung
Export trader and wholesale
distributor of consumer
products (Consumer Goods
and Services) 731,000 1,226,431
Shenzhen Expressway (Series H)
Developer and operator of
highways (Transportation) 4,200,000 1,151,836
Yanzhou Coal Mining
(Series H)*
Mining company producing
prime-quality, low-sulphur
coal (Resources) 1,374,000 359,082
Zindart (ADRs)*
Manufacturer of die-cast and
injection-molded products
including collectibles,
ornaments, and action figures
(Manufacturing) 97,900 1,444,025
------------
6,991,723
------------
INDIA 0.18%
Gujurat Ambuja Cement (GDRs)
Cement producer
(Building Materials) 260,000 1,943,500
------------
ISRAEL 0.05%
Zag Industries*
Designer, developer, and
manufacturer of plastic consumer
products (Manufacturing) 41,500 568,031
------------
ITALY 0.68%
La Doria++
Producer of food, specializing
in fruits, fruit juices, and canned
tomatoes (Consumer Goods
and Services) 2,054,091 7,536,885
------------
JAPAN 4.43%
Aiya
Operator of restaurant chain
(Restaurants) 94,000 735,508
Aoyama Trading
Retailer of clothing (Retailing) 73,000 1,675,131
Asahi Diamond Industries
Manufacturer of diamond-tipped
tools (Manufacturing) 120,000 541,700
Asatsu
Advertising agency (Advertising) 65,700 1,176,436
Benesse
Provider of education services
(Business Services) 20,300 653,681
Danto
Manufacturer of wall and floor
tiles (Building Materials) 53,000 340,932
Enplas
Manufacturer of electronic
components and engineering
plastics (Electronics) 46,000 581,424
Forval
Seller of telephones
(Telecommunications) 40,000 358,124
Fuji Fire and Marine Insurance
Non-life insurance firm
(Financial Services) 735,000 1,741,903
Fujicco
Food manufacturer (Consumer
Goods and Services) 67,300 734,191
Fujitsu Business Systems
Distributor of computer
equipment (Business Services) 82,800 1,277,057
Glory Kogyo
Manufacturer and major exporter
of currency-handling machines
(Manufacturing) 84,000 1,403,002
H.I.S
Travel agency specializing in
overseas and package tours
(Leisure and Hotels) 22,000 344,280
Higashi Nihon House
Home builder (Construction
and Property) 169,000 724,749
Hitachi Information Systems
Leading data processing firm
(Computer Software) 84,000 838,009
- ----------
See footnotes on page 54.
42
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
JAPAN (continued)
Hitachi Medical
Manufacturer of medical
equipment (Medical Products
and Technology) 59,800 $ 656,871
Hogy Medical
Producer of disposable surgical
gowns and medical supplies
(Medical Products and
Technology) 28,000 846,857
Hokkai Can
Manufacturer of cans for the
food industry (Manufacturing) 277,000 625,212
Horiba Instruments
Manufacturer of instruments
and analyzers (Electronics) 121,000 1,374,638
Iino Kaiun Kaisha
Shipping company
(Transportation) 608,000 1,189,332
Japan Information Processing Service
Computer software developer
(Computer Software) 72,500 643,644
Joshin Denki
Budget electrical appliance
retailer (Retailing) 196,000 461,558
Kentucky Fried Chicken
Fast food restaurants
(Restaurants) 72,000 736,711
Kissei Pharmaceutical
Manufacturer, seller, importer,
and exporter of medical products
(Drugs and Health Care) 41,000 501,260
Komatsu Seiren
Printer of long-staple fabrics
(Manufacturing) 120,000 670,805
Komori
Manufacturer of offset printing
machines (Capital Goods) 101,000 1,709,739
Maspro Denkoh
Manufacturer of reception-related
telecommunications equipment
(Telecommunications) 108,600 915,111
Mitsubishi Cable Industries
Manufacturer of wire and cable
products (Manufacturing) 277,000 543,934
Mitsui Home
Home builder (Construction
and Property) 199,000 1,122,898
Namura Shipbuilding
Shipbuilder (Capital Goods) 206,000 604,446
Nichicon
Manufacturer of electrical
equipment (Manufacturing) 66,000 715,043
Nippon Broadcasting System
Vendor of time slots of radio
broadcasting; producer and
marketer of radio programs
(Media) 2,000 91,487
Nippon Seiki
Manufacturer of automobile
components (Automotive Parts
Manufacturing) 126,000 824,738
Nishio Rent All
Rentor of construction equipment
(Construction and Property) 78,100 658,105
Nissha Printing
Integrated printing firm
(Paper and Printing) 99,000 596,614
Nisshin Fire & Marine Insurance
Non-life insurance company
(Financial Services) 288,000 834,217
Nittetsu Mining
Open cast coal miner
(Resources) 191,000 742,933
Nova
Provider of language instruction
courses (Consumer Goods
and Services) 132,000 377,384
Okinawa Electric Power
Supplier of electricity to Okinawa
Island (Electric Utilities) 55,300 836,271
Olympus Optical
Manufacturer of optoelectronic
and other products (Electronics) 60,000 483,015
Otsuka Kagu
Furniture retailer (Retailing) 19,200 873,942
Ryoyo Electro
Distributor of electronic goods
(Electronics) 115,000 1,470,000
- ----------
See footnotes on page 54.
43
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
JAPAN (continued)
Sagami Chain
Noodle restaurant chain
(Restaurants) 94,000 $ 783,599
Sankyo
Manufacturer of pachinko game
equipment (Manufacturing) 107,000 1,706,655
Sanyo Special Steel
Steel manufacturer (Metals) 481,000 615,205
Shimachu
Furniture retailer (Retailing) 40,500 726,724
Shohkoh Fund
Finance company
(Financial Services) 1,900 601,813
Sodick
Manufacturer of electrodischargers
(Manufacturing) 210,000 608,284
Sundrug
Operator of outlet drug stores
(Retailing) 76,600 950,908
Takasago
Specialty chemicals producer,
including fragrances, flavorings,
and aromatic chemicals
(Chemicals) 146,000 678,840
TOEI
Producer of movies, particularly
animated movies (Media) 148,000 501,072
Tokyo Style
Manufacturer of women's
ready-to-wear apparel
(Manufacturing) 62,000 559,756
Towa Pharmaceutical
Large generic drug wholesaler
(Drugs and Health Care) 91,000 581,951
Toyo Ink Manufacturing
Ink manufacturer (Chemicals) 280,000 610,917
Tsubaki Nakashima
Manufacturer of ball bearings
(Manufacturing) 290,900 1,558,295
Tsudakoma
Manufacturer of air-jet looms
(Manufacturing) 446,000 986,525
Tsutsumi Jewelry
Manufacturer and retailer of
jewelry (Retailing) 107,200 1,290,449
Xebio
Retailer of outdoor clothing
(Retailing) 110,400 1,412,030
Yokohama Reito
Cold storage, freezing, and loading
services (Distribution) 72,000 557,409
------------
48,963,324
------------
NETHERLANDS 4.06%
Benckiser (Series B)*
Producer and supplier of
household cleaning
products (Consumer
Goods and Services) 123,400 7,195,638
CMG
Information technology
consulting (Support Services) 374,500 16,707,920
Getronics
Computer systems integration
consultant (Support Services) 100,314 4,435,467
Otra
Holding company for various
technical product wholesale
companies (Electronics) 448,803 8,212,924
Samas Groep
Manufacturer of office
furniture (Manufacturing) 133,312 8,261,533
------------
44,813,482
------------
NEW ZEALAND 0.05%
Sky Network Television
Operator of pay television
(Media) 401,100 599,586
------------
NORWAY 0.79%
Ekornes
Manufacturer of home
furnishings (Manufacturing) 864,300 8,682,942
------------
PHILIPPINES 0.07%
Philippine Long Distance
Telephone
Telephone utility
(Telecommunications) 28,000 747,826
------------
SINGAPORE 0.32%
Bukit Sembawang Estates
Property developer
(Construction and Property) 7,690 51,477
- ----------
See footnotes on page 54.
44
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
SINGAPORE (continued)
Excel Machine Tools*
Manufacturer of computerized
numerical-controlled machine
tools (Manufacturing) 2,039,000 $ 592,321
Informatics Holdings
Operator of computer training
schools (Business Services) 1,893,000 741,181
Keppel FELS
Builder of offshore drilling
rigs, production platforms,
and related specialized vessels
(Industrial Goods and Services) 236,000 694,512
Venture Manufacturing
Contract manufacturer for
the electronics industry
(Electronics) 205,000 744,395
Want Want Holdings (Class A)*
Manufacturer of rice crackers
(Consumer Goods and Services) 552,800 663,360
------------
3,487,246
------------
SOUTH KOREA 0.08%
L.G. Chemical
Manufacturer of petrochemicals,
ranging from cosmetics to
advanced materials (Chemicals) 51,000 393,042
Samsung Display Devices
Manufacturer of cathode
ray tubes (Electronics) 10,000 497,568
Samsung Display Devices
(Rights)*
Manufacturer of cathode
ray tubes (Electronics) 1,436 24,873
------------
915,483
------------
SWEDEN 2.31%
Angpanneforeningen (Series B)
Engineering consultancy
(Business Services) 150,250 2,559,658
BT Industries
Manufacturer of forklifts
(Capital Goods) 116,694 2,334,392
Bure Investment Aktiebolaget
Investment company
(Financial Services) 287,527 4,508,670
Finnveden (Series B)
Industrial conglomerate
(Manufacturing) 134,509 2,968,527
Kalmar Industries
Manufacturer of forklifts
and special lift trucks
(Capital Goods) 235,700 3,802,447
Munskjo
Producer of specialty paper
(Paper and Printing) 387,800 4,104,075
PLM
Manufacturer of food packaging
(Manufacturing) 288,130 5,187,478
------------
25,465,247
------------
SWITZERLAND 2.48%
Bon Appetit Holding++
Food retailer (Retailing) 9,653 6,298,229
Hero
Producer and exporter of
food and beverages (Consumer
Goods and Services) 7,340 5,131,159
Kardex
Manufacturer and distributor
of industrial storage and
retrieval systems (Industrial
Goods and Services) 16,322 5,161,751
Selecta Group*
Owner and operator of food
and beverage vending machines
(Consumer Goods and Services) 42,055 7,055,832
SIG Schweizerische
Industrie-Gesellschaft Holding
Industrial conglomerate
(Manufacturing) 4,474 3,717,411
------------
27,364,382
------------
TAIWAN 0.16%
Taiwan American Fund*
Closed-end fund investing
in Taiwan (Miscellaneous) 104,000 1,783,600
------------
THAILAND 0.09%
Hana Microelectronics
Circuit board manufacturer
(Electronics) 237,000 1,038,988
------------
- ----------
See footnotes on page 54.
45
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED KINGDOM 20.02%
AEA Technology
Provider of engineering and
research and development
services (Industrial Goods
and Services) 300,000 $ 3,612,600
Allied Leisure
Bowling alley operator
(Leisure and Hotels) 4,625,000 2,165,888
Ashtead Group
Rentor of equipment for
the construction industry
(Construction and Property) 4,000,000 17,929,200
BTG
Technology transfer company
assisting in the commercialization
of technological innovations
(Technology) 328,000 3,576,742
Capital Radio
Commercial radio station
(Media) 680,200 7,167,097
Chiroscience Group
Pharmaceutical company
specializing in pharmaceuticals
for cancer, pain, and
inflammatory disorders
(Drugs and Health Care) 225,000 1,232,423
Clinton Cards
Retailer of greeting cards
(Retailing) 2,600,000 5,805,247
Cobham
High-integrity engineering
(Manufacturing) 425,000 7,694,545
COLT Telecom Group*
Provider of telecom-
munications services
(Telecommunications) 200,000 4,315,050
CRT Group
Provider of training and
recruitment services; publisher
of multimedia products
(Support Services) 1,570,000 11,527,372
David Brown Group
Diversified engineering
company; manufacturer of
transmission equipment and
pumps (Manufacturing) 1,831,232 6,814,587
Dawson Group
Rentor of commercial vehicles
(Transportation) 1,324,600 5,604,946
Domnick Hunter Group
Manufacturer of filtration,
purification, and separation
products (Manufacturing) 760,700 5,197,226
Druck Holdings
Worldwide engineering group
(Industrial Goods and Services) 421,200 2,025,314
Electronics Boutique*
Electronic games retailer
(Retailing) 6,250,000 8,780,625
F.I. Group
Designer and builder of
software applications
(Computer Software) 618,633 13,916,227
Fairey Group
Electrical and electronic
engineering (Electronics) 688,600 6,363,051
Games Workshop Group
Manufacturer and retailer
of specialty games (Retailing) 632,600 8,596,441
GWR Group
Local commercial radio
station operator (Media) 1,733,700 5,378,783
IBC Group
Business communications
(Business Services) 1,430,000 12,137,751
ISA International
Distributor of computer
consumables (Business
Services) 1,680,089 2,205,810
National Express Group
Long distance coach services
operating in the UK and
Europe (Transportation) 600,000 9,367,672
Parity
Provider of software engineering
and consulting services
(Computer Software) 1,205,000 15,699,674
Peptide Therapeutics
Biopharmaceuticals
development company
(Drugs and Health Care) 150,000 731,301
- ----------
See footnotes on page 54.
46
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED KINGDOM (continued)
Pizza Express
Operator of restaurant chain
(Restaurants) 932,300 $ 12,154,523
Polypipe
Manufacturer of plastic piping
and molded plastic products
(Building Materials) 2,919,600 9,009,192
Save Group
Gas station chain (Retailing) 455,633 750,615
Shire Pharmaceuticals*
Biotechnology company
specializing in metabolic bone
and Alzheimer's diseases
(Drugs and Health Care) 267,500 1,946,163
Stoves
Manufacturer of ovens
(Manufacturing) 472,500 1,541,000
Tilbury Douglas
Building contractor
(Construction and Property) 2,055,750 8,647,178
Trifast
Manufacturer and distributor
of fasteners for the
electronics industry
(Electrical Distribution) 463,800 5,119,656
Trinity
Publisher of regional
newspapers in the UK, US,
and Canada (Media) 1,235,100 11,082,506
Vanguard Medica Group
Emerging biopharmaceutical
company planning to develop
and commercialize new drugs
(Drugs and Health Care) 184,543 1,821,024
Vanguard Medica Group
(Warrants)*
Emerging biopharmaceutical
company planning to develop
and commercialize new drugs
(Drugs and Health Care) 26,362 67,679
Wellington Holdings
Producer of sealing systems
and rubber compounds
(Manufacturing) 440,000 1,210,555
------------
221,195,663
------------
UNITED STATES 45.20%
AccuStaff*
Provider of temporary
personnel services
(Business Services) 408,900 14,669,288
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 4,831,250
ADE
Designer, manufacturer, and
marketer of metrology and
inspection systems for the
semiconductor wafer
manufacturing industry
(Technology) 45,400 812,944
ADVO*
Direct mail advertising services
(Business Services) 56,000 1,603,000
Aerial Communications*
Provider of cellular telephone
services (Telecommunications) 300,000 2,165,625
Affiliated Computer Services
(Class A)*
Provider of information
technology services and
electronic funds transfer
processing (Business Services) 113,800 3,997,225
Allied Waste Industries
Provider of integrated waste
disposal services (Industrial
Goods and Services) 311,500 8,585,719
American Capital Strategies
Provider of commercial
financing (Financial Services) 113,200 2,561,150
American Disposal Services*
Provider of solid waste
collection, transfer, and
disposal services (Consumer
Goods and Services) 79,200 3,177,900
- ----------
See footnotes on page 54.
47
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
American HomePatient*
Provider of home health
care services (Drugs and
Health Care) 220,000 $ 4,049,375
American Homestar*
Retailer and producer of
manufactured homes
(Manufacturing) 337,900 6,958,628
American Management Systems*
Provider of information
technology consulting services
(Business Services) 50,000 1,442,188
Analysts International
Provider of diversified
computer software services
(Business Services) 75,000 2,146,875
ANTEC*
Developer and supplier of fiber
optic transmission, construction,
and maintenance equipment
for the cable television industry
(Telecommunications) 205,900 4,072,959
Arch Communications Group*
Provider of nationwide paging
services (Telecommunications) 205,400 1,148,956
Asyst Technologies*
Miniature clean-room
environment devices for
the manufacture of silicon
wafers (Technology) 202,300 4,254,622
Avant!*
Developer and marketer
of software products that
assist design engineers
(Computer Software) 205,300 5,940,869
AVX
Manufacturer and supplier of
passive electronic components
and related products
(Electronics) 130,900 2,691,631
BA Merchant Services (Class A)*
Provider of payment processing
services (Business Services) 187,000 2,805,000
Bacou USA*
Designer and manufacturer of
personal protective gear
(Industrial Goods and Services) 205,000 3,869,375
Barnes & Noble*
Owner and operator of retail
book stores and superstores
(Retailing) 147,800 5,006,725
BISYS Group*
Provider of data processing
services for banks (Business
Services) 150,400 5,936,100
Black Box*
Provider of communications
and networking solutions
(Electrical Distribution) 100,000 3,312,500
Budget Group*
Owner and operator of
Budget Rent-a-Car franchises
(Consumer Goods and Services) 65,200 2,184,200
Burr-Brown*
Manufacturer of microelectric
data devices for business
end-users (Technology) 285,600 8,666,175
Cabot Industrial Trust
Fully integrated real estate
company serving a variety
of industrial space users
in the commercial markets
(Financial Services) 92,600 2,095,075
Cabot Oil & Gas (Class A)
Explorer, developer, and producer
of oil and gas (Energy) 114,200 2,676,563
CalEnergy*
Developer of geothermal energy
power (Electric Utilities) 276,100 9,007,763
Calpine*
Developer of power generation
facilities (Electric Utilities) 500,000 9,031,250
Canandaigua Brands (Class A)*
Wine, imported beer, and
distilled spirits (Consumer
Goods and Services) 70,600 3,684,438
Carriage Services*
Provider of funeral services
and products (Consumer Goods
and Services) 178,900 4,282,419
- ----------
See footnotes on page 54.
48
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Celadon Group*
Provider of transportation and
international freight services
(Transportation) 261,200 $ 3,901,675
Ceridian*
Provider of data processing
services (Business Services) 186,900 10,571,531
CMP Media (Class A)*
Magazine and newspaper
publisher (Media) 54,700 1,254,681
Cognex*
Manufacturer of machine vision
systems (Electronics) 266,700 6,442,472
Coinmach Laundry*
Provider of coin-operated
laundry equipment and
services (Consumer Goods
and Services) 236,100 5,622,131
Collaborative Clinical Research*
Manager of a clinical research
network (Drugs and
Health Care) 150,000 675,000
Compdent*
Provider of managed-care
dental services (Medical
Products and Technology) 300,000 3,918,750
Continental Natural Gas*
Independent owner and
operator of natural gas
pipelines (Resources) 210,000 2,034,375
Corporate Express*
Supplier of office products
(Retailing) 518,900 5,205,216
Cox Radio (Class A)*
Operator of radio stations
(Media) 196,800 9,520,200
Credence Systems*
Manufacturer of automated
semiconductor test equipment
(Technology) 259,100 7,125,250
Crusader Holding*
Provider of community
banking services, including
residential mortgages and
commercial leases (Financial
Services) 34,200 604,913
Delco Remy International*
Designer, manufacturer,
remanufacturer, and distributor
of components for automobiles,
trucks, and heavy duty vehicles
(Automotive Parts
Manufacturing) 80,000 1,280,000
Duane Reade*
Retail drugstore chain
(Retailing) 140,300 3,332,125
Eagle Geophysical*
Company specializing in
seismic data collection
(Energy Services) 130,200 2,416,838
EduTrek International (Class A)*
Operates post-secondary
educational colleges in three
countries (Technology) 187,700 5,208,675
Equity International*
Provider of funeral services
(Consumer Goods and Services) 158,500 3,932,781
FactSet Research Systems*++
Provider of on-line database
services to the financial
community (Business Services) 271,000 9,485,000
Flanders*
Designer, manufacturer, and
marketer of a range of air
filtration products (Consumer
Goods and Services) 194,500 1,148,766
Freedom Securities*
Full-service retail brokerage
and investment banking firm
(Financial Services) 15,800 350,563
Fusion Systems (Rights)*
Supplier of ultraviolet curing
systems, photostabilizers, and
single-wafer ashers used in
semiconductor device
manufacturing (Capital Goods) 70,000 14,219
General Cable
Designer, developer, manufacturer,
marketer, and distributor of wire
and cable products for the
communications and
electrical markets
(Manufacturing) 52,000 2,356,250
- ----------
See footnotes on page 54.
49
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
General Semiconductor*
Designer and manufacturer
of power semiconductors
(Technology) 304,700 $ 4,170,581
Glenayre Technologies*
Manufacturer of paging
infrastructure equipment
(Telecommunications) 298,300 4,698,225
GTECH Holdings*
Operator of state and local
lottery systems (Leisure
and Hotels) 57,800 2,073,575
HA-LO Industries*
Distributor of specialty
advertising products
(Advertising) 115,000 3,859,688
HCC Insurance Holdings
Underwriter of property and
casualty insurance (Financial
Services) 70,500 1,533,375
Hearst-Argyle Television (Class A)*
Television broadcasting (Media) 152,400 5,448,300
HMT Technology*
Supplier of high-performance
thin-film disks for high-end,
high-capacity, hard disk drives
(Technology) 144,600 1,870,763
Horizon Medical Products*
Manufacturer and marketer of
vascular access products
(Medical Products and
Technology) 250,000 3,671,875
Humana*
Provider of managed health
care plans (Drugs and Health
Care) 41,100 1,109,700
Imnet Systems*
Developer, marketer, and
installer of electronic
information and document
management systems
(Computer Software) 108,900 1,742,400
Imperial Credit*
Mortgage banking operations
(Financial Services) 217,600 5,480,800
Imperial Credit Commercial
Mortgage Investment
Real estate investment trust
(Financial Services) 120,200 1,731,631
Innovative Valve Technologies
Provider of maintenance, repair,
replacement, and value-added
distribution services for
industrial valves and
related components (Business
Services) 90,900 1,482,806
Insignia Financial (Class A)*
Real estate management
services (Financial Services) 215,700 5,743,013
Inso*
Marketer and developer of
textual information software
(Computer Software) 111,900 2,007,206
Integrated Device Technology*
Designer, manufacturer, and
marketer of integrated circuits
and modules (Technology) 141,900 1,707,234
Integrated Electrical Services*
Provider of electrical contracting
and maintenance services to
the commercial, industrial,
and residential markets
(Electronics) 111,400 2,151,413
Ivex Packaging*
Manufacturer of specialty
packages (Consumer Goods
and Services) 151,700 3,678,725
Jacor Communications*
Radio broadcasting (Media) 147,400 8,378,769
Journal Register*
Newspaper publisher (Media) 240,600 5,428,537
Kemet*
Manufacturer and supplier
of ceramic capacitors
(Technology) 369,700 6,689,259
Kendle International*
Provider of a variety of
clinical research services
(Drugs and Health Care) 100,000 2,625,000
- ----------
See footnotes on page 54.
50
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Keystone Automotive Industries*
Distributor of aftermarket
collision replacement parts for
automobiles and light trucks
(Distribution) 29,400 $ 765,319
Lattice Semiconductor*
Designer and developer of
programmable logic devices
(Technology) 49,000 2,234,094
MAPICS
Supplier of applications
software, including solutions
for business planning,
production, logistics, and
asset management needs
(Computer Software) 626,300 11,195,112
Marcam Solutions*
Supplier of business planning
applications and services
(Computer Software) 185,000 2,948,437
Market Facts*
Compiler of information for
the optimization of the
marketing decision process
(Business Services) 109,900 2,520,831
McDermott International
Manufacturer of steam-
generating and environmental
equipment and products;
provider of engineering
and construction services
(Industrial Goods and Services) 121,800 5,039,475
Medallion Financial
Provider of loan financing
for the purchase of taxicab
medallions and related assets
(Financial Services) 137,400 4,079,062
Microchip Technology*
Supplier of microcontrollers
and related specialty
memory products (Technology) 156,900 4,442,231
Micrografx*
Developer and marketer of
graphics applications
and software (Business Services) 30,900 361,144
MMI Companies
International health care risk
management company
(Financial Services) 125,400 2,946,900
Nanogen*
Developer of systems for integrating
advanced microelectronics and
molecular biology into platforms
for medical diagnostics and
research (Medical Products
and Technology) 250,000 2,359,375
National Surgery Centers*
Owner and operator of
freestanding multi-specialty
outpatient surgery centers
(Medical Products and
Technology) 9,500 268,078
NCS HealthCare (Class A)*
Health care facility and
pharmacy services (Drugs and
Health Care) 110,000 3,224,375
NOVA*
Producer and marketer of
petrochemicals and plastics;
natural gas pipeline operator
(Business Services) 58,500 1,989,000
Nutraceutical International*
Manufacturer and marketer of
branded nutritional supplements
(Consumer Goods and Services) 23,500 426,672
Oak Industries*
Manufacturer of cable television
connectors and fiber optic
components (Electronics) 29,000 1,053,062
Ocular Sciences*
Manufacturer and marketer
of soft contact lenses (Medical
Products and Technology) 150,000 4,190,625
Ocwen Financial*
Holding company involved
in asset acquisition, finance,
and management
(Financial Services) 113,900 2,947,162
OM Group
Producer of specialty chemicals
(Chemicals) 183,900 8,149,069
- ----------
See footnotes on page 54.
51
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Omnicare
Provider of pharmacy services
to long-term care institutions
(Drugs and Health Care) 98,400 $ 3,370,200
OmniQuip International
Manufacturer of telescopic
material handlers (Industrial
Goods and Services) 84,700 1,995,744
Personnel Group of America*
Personnel staffing services
(Business Services) 222,000 4,412,250
Petersen Companies (Class A)*
Special-interest magazine
publisher (Media) 140,000 3,640,000
PMC-Sierra*
Provider of high-speed
networking circuits (Technology) 125,600 5,703,025
PMT Services*
Marketer of electronic credit
card authorization and payment
services (Business Services) 354,200 6,862,625
Polymer Group*
Manufacturer and marketer
of polyolefin products
(Manufacturing) 100,000 1,225,000
Premier Parks*
Owner and operator of
regional theme parks (Leisure
and Hotels) 39,700 2,208,312
Pre-Paid Legal Services*
Underwriter and marketer of
legal service plans
(Business Services) 32,600 1,232,688
Pride International*
Provider of oil and gas well
services (Industrial Goods
and Services) 68,300 1,660,544
Prison Realty Trust
Real estate investment trust
investing in prisons
(Construction and Property) 174,800 6,194,475
Provant*
Provider of training and
development services
(Business Services) 85,400 1,595,912
Province Healthcare*
Provider of health care services
in non-urban markets (Drugs
and Health Care) 155,700 4,252,556
PSS World Medical*
Distributor of medical
supplies, equipment, and
pharmaceuticals (Drugs
and Health Care) 157,600 3,531,225
PSW Technologies*
Provider of high-value
solutions to technology vendors
and business end-users
(Business Services) 208,800 1,605,150
Quorum Health Group*
Owner and operator of
acute-care hospitals
(Drugs and Health Care) 124,800 3,993,600
RDO Equipment (Class A)*
Owner and operator of
John Deere stores (Retailing) 250,000 4,125,000
Renex*
Provider of dialysis and
ancillary services (Drugs and
Health Care) 9,500 55,812
Santa Fe Energy Resources*
Explorer, producer, and
developer of oil and gas
(Resources) 252,200 2,600,812
Schein Pharmaceutical*
Developer, manufacturer, and
vendor of generic
pharmaceuticals (Drugs and
Health Care) 83,100 2,035,950
Scherer (R.P.)*
Developer and producer of
drug delivery systems
(Drugs and Health Care) 122,300 8,927,900
Sinclair Broadcast Group
(Class A)*
Diversified broadcasting
company that owns and
services television and
radio stations (Media) 66,000 3,423,750
- ----------
See footnotes on page 54.
52
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
SITEL*
Telemarketer
(Business Services) 200,000 $ 2,350,000
Sola International*
Designer and manufacturer
of optical supplies (Consumer
Goods and Services) 73,000 3,102,500
Stanford Telecommunications*
Designer, manufacturer,
and marketer of digital
telecommunications
products and systems
(Telecommunications) 42,700 751,253
Steinway Musical Instruments*
Manufacturer of musical
equipment (Consumer
Goods and Services) 142,500 4,355,156
Toll Brothers*
Developer of single
family homes (Construction
and Property) 47,100 1,312,913
Total Renal Care Holdings
Provider of dialysis services
(Drugs and Health Care) 270,999 8,976,842
Triangle Pharmaceuticals*
Developer of new drugs,
primarily in the antiviral area
(Drugs and Health Care) 127,500 1,968,281
UCAR International*
Manufacturer of graphite
and carbon electrodes
(Capital Goods) 272,000 8,840,000
US Foodservice*
Distributor of food and
related products (Business
Services) 147,900 5,222,719
Valley National Gases*
Packager and distributor of
gases (Chemicals) 350,000 4,025,000
Waterlink*
Provider of integrated water
purification and wastewater
treatment solutions (Capital
Goods) 112,500 1,560,937
SHARES
OR PRIN. AMT. VALUE
------------- ------------
UNITED STATES (continued)
Waters*
Manufacturer of liquid
chromatography instruments
(Medical Products
and Technology) 79,000 shs. $ 4,226,500
Watson Pharmaceuticals*
Manufacturer of off-patent
medications (Medical Products
and Technology) 106,300 4,570,900
Wisconsin Central Transportation*
Operator of regional railroad
systems (Transportation) 135,600 3,326,437
Youth Services*
Operator of residential and
community-based programs
for at-risk youths
(Support Services) 215,700 3,882,600
Ziff-Davis*
Integrated media and market-
ing company focused on
computing and Internet-
related technology (Media) 80,600 1,450,800
-------------
499,411,214
-------------
TOTAL COMMON STOCKS
(Cost $867,931,766) 1,062,557,648
-------------
PREFERRED STOCKS 0.62%
(Cost $7,870,810)
GERMANY 0.62%
Gerry Weber International*
Designer and manufacturer
of ladies' apparel
(Manufacturing) 274,911 6,811,548
-------------
CONVERTIBLE BONDS 0.28%
FRANCE 0.18%
L'Europeenne d'Extincteurs
4 1/4%, 1/1/2005
(Manufacturing) $2,190,800 1,984,189
JAPAN 0.10%
Gunma Bank
0.45%, 9/28/2001
(Financial Services) 150,000,000** 1,160,140
-------------
TOTAL CONVERTIBLE BONDS
(Cost $2,901,856) 3,144,329
-------------
- ----------
See footnotes on page 54.
53
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Smaller Companies Fund
VALUE
--------------
TOTAL INVESTMENTS 97.07%
(Cost $878,704,432) $1,072,513,525
OTHER ASSETS
LESS LIABILITIES 2.93% 32,316,589
--------------
NET ASSETS 100.00% $1,104,830,114
==============
- ----------
* Non-income producing security.
** Principal amount reported in Japanese yen.
++ Affiliated issuers (a Series' holdings representing 5% or more of the
outstanding voting securities).
Description of companies have not been audited by Deloitte & Touche llp.
See Notes to Financial Statements.
54
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Technology Fund
PERFORMANCE REVIEW
Seligman Henderson Global Technology Fund posted a total return of 15.57% based
on the net asset value of Class A shares for the six months ended April 30,
1998. This compares to the 16.72% and 15.94% total returns of its peers, as
measured by the Lipper Global Funds Average and the Lipper Science & Technology
Funds Average, respectively.
In the October 31, 1997, Annual Report, we discussed the uncertainty created by
the economic crisis in the Pacific region for the technology industry and for
world markets in general. In early November, the prognosis did not appear
positive, but stock markets around the world successfully negotiated a difficult
period and emerged relatively unscathed. Not only did the Pacific markets
stabilize, but US and European stocks advanced as investors reacted favorably to
continued low inflation and robust economic growth.
PORTFOLIO STRATEGY
o In the October 31 Report, it was suggested that those sub-sectors of the
technology industry most vulnerable to Asian demand included
semiconductors and related equipment, personal computers, and wireless
equipment. The markets concurred, and stocks in these sectors have
generally underperformed over the past six months. Fortunately, the Fund's
exposure to these sectors was lower than in previous periods.
Our decision not to be tempted by the collapse in Pacific share prices
last October proved rewarding. Weakness in the personal computer and
semiconductor markets has cast a pall over the sector, and there is little
sign of improvement in the near term. Nevertheless, we are beginning to
see some positive developments in Japan, where companies are finally
beginning to tentatively restructure their businesses.
Among the best performing sectors in the portfolio were information
services and peripherals. The Fund's European services companies were
especially good
FUND OBJECTIVE
Seligman Henderson Global Technology Fund, which commenced operations on May 23,
1994, seeks long-term capital appreciation by investing in securities of
companies around the world that operate in the technology and technology-related
industries.
[PHOTO OMITTED]
International Team: (from left) Emma Parkinson, Tim Woolley, David Magliocco,
Brian Ashford-Russell (Portfolio Manager)
[PHOTO OMITTED]
US Team: (standing) Paul Krieger, Shanean Austin (Administrative Assistant),
Patrick Renda, Lawrence Rosso, Storm Boswick, Carolyn Rogers, (seated) Paul Wick
(Portfolio Manager); Kei Yamamoto (not pictured)
55
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Technology Fund
performers, including Logica, Admiral, Misys, and Unilog. In
peripherals, US holdings EMC and Storage Technology advanced sharply
in response to positive fundamentals in the data storage systems
business.
Other areas of notable strength were software, Internet, and
telecommunications. Although the Fund had insignificant Internet
investments, its positions in software and telecommunications
contributed strongly to overall performance. Successful investments
here include COLT Telecom Group, a UK competitive local exchange
carrier, and Electronic Arts, a leader in entertainment software
based in the US.
SUMMARY
The technology industry enjoyed a strong beginning in 1998, and the long-term
outlook remains excellent. Companies are seeing dramatic productivity paybacks
from their investment in information technology, while world economies are
benefiting from the deflationary impact of falling prices for technology
products and the substitution of labor for capital. Although certain areas of
the technology industry remain under pressure, others are enjoying buoyant
demand. European investors are finally awakening to the attractions of the
industry, and valuations there have risen sharply. We remain convinced of the
industry's secular appeal, but still anticipate a seasonally weak period over
the next few months. We will continue to monitor the situation very closely and
will position the portfolio accordingly.
56
<PAGE>
PORTFOLIO AND PERFORMANCE OVERVIEW
Seligman Henderson Global Technology Fund
Country Allocation
April 30, 1998
MSCI
WORLD
FUND INDEX
----- ------
CONTINENTAL EUROPE ..................................... 15.32% 23.93%
Austria ............................................. -- 0.20
Belgium ............................................. -- 0.74
Denmark ............................................. -- 0.48
Finland ............................................. 1.14 0.49
France .............................................. 4.35 4.25
Germany ............................................. 1.98 4.94
Hungary ............................................. 0.44 --
Ireland ............................................. -- 0.25
Italy ............................................... 1.07 2.26
Luxembourg .......................................... 1.16 --
Netherlands ......................................... 2.84 2.78
Norway .............................................. -- 0.30
Portugal ............................................ -- 0.35
Spain ............................................... 0.44 1.62
Sweden .............................................. 1.90 1.55
Switzerland ......................................... -- 3.72
JAPAN .................................................. 4.58 10.56
PACIFIC ................................................ 7.78 3.10
Australia ........................................... 0.78 1.21
Hong Kong ........................................... -- 1.03
Malaysia ............................................ -- 0.37
New Zealand ......................................... -- 0.12
Singapore ........................................... 4.11 0.37
South Korea ......................................... 0.67 --
Taiwan .............................................. 2.22 --
UNITED KINGDOM ......................................... 14.54 10.40
UNITED STATES .......................................... 49.75 49.60
OTHER .................................................. 6.00 2.41
Bermuda ............................................. 0.62 --
Brazil .............................................. 0.50 --
Canada .............................................. -- 2.41
India ............................................... 0.14 --
Israel .............................................. 4.74 --
OTHER ASSETS LESS LIABILITIES .......................... 2.03 --
------ ------
TOTAL .................................................. 100.00% 100.00%
====== ======
Largest Industries
April 30, 1998
[The following table was represented as a bar chart in the printed material]
COMPUTER SOFTWARE $157,854,050
ELECTRONICS CAPITAL EQUIPMENT $134,348,093
COMPUTER HARDWARE/PERPHERALS $118,147,802
TELECOMMUNICATIONS $ 96,661,438
COMPUTER AND BUSINESS SERVICES $ 96,290,376
Regional Allocation
April 30, 1998
[The following table was represented as a pie chart in the printed material]
Japan 4.58%
Pacific 7.78%
Continental Europe 15.32%
United Kingdom 14.54%
United States 49.75%
Other 6.00%
Other Assets Less Liabilities 2.03%
Largest Portfolio Holdings
April 30, 1998
SECURITY VALUE
- -------- -----------
EMC (US) ................................................. $29,981,250
Novellus Systems (US) .................................... 21,515,625
Structural Dynamics
Research (US) .......................................... 21,234,375
Storage Technology (US) .................................. 21,109,375
Creative Technology (Singapore) .......................... 20,531,250
CMP Media (Class A) (US) ................................. 20,185,000
Maxim Integrated Product (US) ............................ 19,566,719
Synopsys (US) ............................................ 17,175,000
Network Associates (US) .................................. 17,140,625
ECI Telecommunications (Israel) .......................... 16,843,750
57
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
Investment Results Per Share
TOTAL RETURNS
For Periods Ended April 30, 1998
AVERAGE ANNUAL
-----------------------------
CLASS B
SINCE SINCE
SIX ONE INCEPTION INCEPTION
MONTHS* YEAR 5/23/94 4/22/96
------ ---- --------- ---------
Class A**
With Sales Charge 10.05% 29.13% 26.40% n/a
Without Sales Charge 15.57 35.53 27.99 n/a
Class B**
With CDSL+ 10.34 29.45 n/a 20.15%
Without CDSL 15.20 34.45 n/a 21.37
Class D**
With 1% CDSL 14.08 33.28 n/a n/a
Without CDSL 15.05 34.28 26.93 n/a
Lipper Global Funds Average*** 16.72 27.15 15.31++ 17.87(a)
Lipper Science &
Technology Funds Average*** 15.94 43.22 28.63++ 21.08(a)
MSCI World Index*** 19.08 29.54 17.53+++ 19.82(a)
NET ASSET VALUE
APRIL 30, 1998 OCTOBER 31, 1997 APRIL 30, 1997
-------------- ---------------- --------------
Class A $14.83 $15.14 $12.91
Class B 14.31 14.73 12.62
Class D 14.29 14.73 12.62
CAPITAL GAIN INFORMATION
For the Six Months Ended April 30, 1998
Paid $2.322
Realized 0.433
Unrealized 3.222(b)
Performance data quoted represent changes in prices and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price and assume the investment of
dividends and capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class B shares are calculated with and without the
effect of the maximum 5% contingent deferred sales load ("CDSL"), charged
on redemptions made within one year of the date of purchase, declining to
1% in the sixth year and 0% thereafter. Returns for Class D shares are
calculated with and without the effect of the 1% CDSL, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Global Funds Average, the Lipper Science & Technology Funds
Average, and the Morgan Stanley Capital International World Index (MSCI
World Index) are unmanaged benchmarks that assume reinvestment of
dividends. The Lipper Global Funds Average and the Lipper Science &
Technology Average exclude the effect of sales charges and the MSCIWorld
Index excludes the effect of fees and sales charges. The monthly
performances of the Lipper Global Funds Average and the Lipper Science
&Technology Average are used in the Performance and Portfolio Overview.
Investors cannot invest directly in an average or an index.
+ The CDSL is 5% for periods of one year or less, and 3% since inception.
++ From May 26, 1994.
+++ From May 31, 1994.
(a) From April 30, 1996.
(b) Represents the per share amount of net unrealized appreciation of
portfolio securities as of April 30, 1998.
58
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
This chart compares a $10,000 hypothetical investment made in Seligman
Henderson Global Technology Fund, with and without the initial 4.75% maximum
sales charge for Class A shares, and without the 1% contingent deferred sales
load ("CDSL") for Class D shares, since the commencement of operations on May
23, 1994, through April 30, 1998, to a $10,000 hypothetical investment made in
the Lipper Global Funds Average, the Lipper Science &Technology Funds Average,
and the Morgan Stanley Capital International World Index (MSCI World Index) for
the same period. It is important to keep in mind that the Index excludes the
effect of fees or sales charges, and the Averages exclude the effect of sales
charges.
[GRAPH OMITTED]
There are specific risks associated with global investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and rapid changes in political and economic conditions.
As shown on page 58, the performance of Class B shares will be greater
than or less than the performances shown for Class A shares and Class D shares,
based on the differences in sales charges and fees paid by shareholders. Past
performance is not indicative of future investment results.
Largest Portfolio Changes
During the Six Months Ended April 30, 1998
SHARES
------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/98
- --------- -------- --------
America Online (US) ......................... 90,000 190,000(1)
Cable & Wireless (UK) ....................... 682,000 682,000
Check Point Software
Technologies (Israel) ..................... 300,000 300,000
Electronic Arts (US) ........................ 350,000 350,000
Genesys Telecommunications
Laboratories (US) ......................... 235,000 235,000
HNC Software (US) ........................... 275,000 275,000
Orbotech (Israel) ........................... 300,000 300,000
Rhone-Poulenc (Series A)
(France) .................................. 210,000 210,000
Scandinavian Broadcasting
System (Luxembourg) ....................... 240,000 240,000
Tecnomatix Technologies
(Israel) .................................. 300,000 300,000
SHARES
------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/98
- ---------- -------- --------
American Power
Conversion (US) ........................ 225,000 275,000
BMC Software (US) ........................ 200,000 --
Cisco Systems (US) ....................... 225,000(2) --
Gemstar International
(Bermuda) .............................. 350,000 150,000
Lexmark International
Group (Class A) (US) ................... 200,000 275,000
Millicom International
Cellular (Luxembourg) .................. 250,000 50,000
Parametric Technology (US) ............... 369,200 330,800(3)
Philips Electronics
(Netherlands) .......................... 123,300 --
Read-Rite (US) ........................... 600,000 --
Taiwan Semiconductor
Manufacturing (ADRs)
(Taiwan) ............................... 700,000 307,500
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ----------
(1) Includes 100,000 shares received as a result of a 2-for-1 stock split.
(2) Includes 75,000 shares received as a result of a 3-for-2 stock split.
(3) Includes 300,000 shares received as a result of a 2-for-1 stock split.
59
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
COMMON STOCKS 97.73%
AUSTRALIA 0.78%
Cochlear
Developer and marketer
of hearing aids (Medical
Products and Technology) 1,650,000 $ 7,234,363
------------
BERMUDA 0.62%
Gemstar International*
Developer and marketer of
television and video
recording products (Media) 150,000 5,803,125
------------
BRAZIL 0.50%
TelecomunicacoesBrasileiras
"Telebras" (ADRs)
Provider of telecommunications
services (Telecommunications) 38,000 4,631,250
------------
FINLAND 1.14%
Nokia (Series A)
Manufacturer and developer
of telecommunications
systems and equipment
(Telecommunications) 158,000 10,613,661
------------
FRANCE 4.35%
Alcatel Alsthom
Developer of equipment
and systems for public
telecommunications
(Telecommunications) 63,000 11,673,452
Altran Technologies
Provider of computer services
(Computer and
Business Services) 38,000 6,056,003
Axime
Provider of banking and financial
services, emphasizing database
development, communication
networks, and integrated
trading systems (Computer and
Business Services) 42,816 7,150,823
Rhone-Poulenc (Series A)
Manufacturer of chemicals,
polymers, fibers, pharmaceuticals,
and agricultural chemicals
(Medical Products and
Technology) 210,000 10,263,565
Unilog
Computer consultants
(Computer and
Business Services) 17,241 5,429,447
------------
40,573,290
------------
GERMANY 1.98%
LHS Group*
Producer of billing and customer
care software products and
related services to wireless
and wireline carriers
(Telecommunications) 85,000 10,364,699
Mannesmann
Manufacturer of plant and
machinery equipment;
automotive optical inspection
systems (Machinery and
Equipment) 10,240 8,062,005
------------
18,426,704
------------
HUNGARY 0.44%
Richter Gedeon (GDRs)
Manufacturer of
pharmaceuticals
and cosmetics (Medical
Products and Technology) 39,000 4,153,500
------------
INDIA 0.14%
Videsh Sanchar Nigam (GDRs)*+
Provider of international
telecommunications services
(Telecommunications) 102,500 1,281,250
------------
ISRAEL 4.74%
Check Point Software Technologies*
Developer of network "firewall"
security software
(Computer Software) 300,000 8,831,250
ECI Telecommunications
Provider of digital
telecommunications and
data transmissions systems
(Networking/Communications
Infrastructure) 550,000 16,843,750
- ----------
See footnotes on page 66.
60
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
ISRAEL (continued)
Orbotech*
Designer, developer, and
manufacturer of automated
optical inspection systems
(Electronics) 300,000 $ 10,865,625
Tecnomatix Technologies*
Developer and retailer of
computer-aided production
engineering software
(Computer Software) 300,000 7,668,750
------------
44,209,375
------------
ITALY 1.07%
Telecom Italia
Provider of telecom-
munications services
(Telecommunications) 1,333,333 9,972,714
------------
JAPAN 4.58%
Aval Data
Manufacturer of computer
peripherals (Computer
Hardware/Peripherals) 200,000 662,077
CSK
Information services
company (Computer and
Business Services) 255,000 5,400,632
Glory Kogyo
Manufacturer and major
exporter of currency-handling
machines (Miscellaneous) 122,000 2,037,693
Hirose Electronics
Manufacturer of specialized
connectors (Electronics) 60,800 3,060,242
Hitachi
Manufacturer of diversified
electronics (Electronics) 600,000 4,283,941
Mimasu Semiconductor
Wafer inspection devices
(Electronics Capital
Equipment) 180,000 2,640,785
Murata Manufacturing
Manufacturer of capacitors
(Electronics) 125,000 3,648,949
NEC
Manufacturer and marketer
of computers and
telecommunications devices
(Networking/Communications
Infrastructure) 803,000 9,001,768
Rohm
Producer of custom
linear integrated circuits
(Semiconductors) 50,000 5,620,133
Secom
Security services pioneer
(Computer and
Business Services) 109,000 6,396,569
------------
42,752,789
------------
LUXEMBOURG 1.16%
Millicom International Cellular*
Cellular services operator
(Telecommunications) 50,000 1,962,500
Scandinavian Broadcasting System*
Owner and operator of
commercial television and
radio stations (Media) 240,000 7,642,500
United Customer Management
Solutions
Provider of telecommunications
services (Telecommunications) 7,600 1,238,800
------------
10,843,800
------------
NETHERLANDS 2.84%
ASM Lithography Holding*
Manufacturer of semiconductor
production equipment
(Electronics Capital
Equipment) 110,000 10,065,000
ASM Lithography Holding*
Manufacturer of semiconductor
production equipment
(Electronics Capital
Equipment) 16,000 1,451,308
CMG
Information technology
consulting (Computer and
Business Services) 335,000 14,945,669
------------
26,461,977
------------
SINGAPORE 4.11%
Creative Technology*
Producer of PC audio
products (Computer
Hardware/Peripherals) 1,000,000 20,531,250
Flextronics International*
Contract manufacturer of
electronic components
(Electronics) 200,000 9,387,500
- ----------
See footnotes on page 66.
61
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
SINGAPORE (continued)
Venture Manufacturing
Contract manufacturer
for the electronics industry
(Electronics) 2,303,000 $ 8,362,646
------------
38,281,396
------------
SOUTH KOREA 0.67%
Chung Ho Computer
Manufacturer of ATMs and
cash dispensers (Computer
Hardware/Peripherals) 36,256 501,860
Samsung Electronics (GDRs)
(1/2 non-voting)*+
Manufacturer of consumer
electronics and semiconductors
(Semiconductors) 253,130 2,878,088
SK Telecom Group (ADRs)
Provider of mobile
telecommunications and
paging services
(Telecommunications) 386,250 2,872,734
------------
6,252,682
------------
SPAIN 0.44%
Telefonica de Espana
Provider of telecommunications
services (Telecommunications) 96,000 4,003,541
Telefonica de Espana (Rights)*
Provider of telecommunications
services (Telecommunications) 96,000 74,280
------------
4,077,821
------------
SWEDEN 1.90%
L.M. Ericsson Telefon (Series B)
Manufacturer of
telecommunications
equipment (Networking/
Communications
Infrastructure) 215,000 11,321,193
Pharmacia & Upjohn
Global pharmaceutical and
biotechnology company
(Medical Products and
Technology) 147,800 6,437,864
------------
17,759,057
------------
TAIWAN 2.22%
Accton Technology (GDRs)
Distributor of electronic
components (Distribution) 462,990 1,875,109
Siliconware Precision
Industries (GDRs)*
Integrated circuit packaging
(Electronics Capital
Equipment) 308,000 4,658,500
Synnex Technology
International (GDRs)*
Manufacturer of PCs and
peripherals (Distribution) 178,000 4,049,500
Taiwan Semiconductor
Manufacturing (ADRs)*
Manufacturer of integrated
circuits (Semiconductors) 307,500 7,552,969
Yageo (GDRs)*
Manufacturer of passive
components (Electronics) 208,020 2,476,083
Yageo (GDRs)*+
Manufacturer of passive
components (Electronics) 5,980 71,181
------------
20,683,342
------------
UNITED KINGDOM 14.54%
Abacus Polar
Distributor of electronic
components (Distribution) 1,240,000 2,416,093
Acorn Group*
Supplier of information
technology (Computer
Hardware/Peripherals) 1,228,000 3,049,938
Admiral
Computer software and
services (Computer and
Business Services) 738,000 13,484,782
Anite Group*
Supplier of data communications
and software products
(Networking/Communications
Infrastructure) 1,950,000 2,217,735
- ----------
See footnotes on page 66.
62
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
UNITED KINGDOM (continued)
Astec
Designer and manufacturer
of power conversion products
and electronic components
(Computer Hardware/
Peripherals) 3,650,000 $ 6,684,564
Azlan
Networking equipment
distributor (Distribution) 704,600 595,114
BTG
Technology transfer
company assisting in the
commercialization of
technological inventions
(Computer and
Business Services) 585,000 6,379,249
Cable & Wireless
Supplier of telecommunications
services (Telecommunications) 682,000 7,841,934
Colt Telecom Group*
Provider of telecommunications
services (Telecommunications) 670,800 14,472,678
CRT Group
Provider of training and
recruitment services;
publisher of multimedia
products (Computer and
Business Services) 900,000 6,608,048
Eidos*
Developer of entertainment
software (Computer Software) 242,000 3,834,959
Filtronic Comtek
Designer and manufacturer
of sophisticated devices for
mobile telecommunications
systems (Networking/
Communications
Infrastructure) 40,000 317,775
Freepages Group
Provider of classified
information by telephone
and the Internet
(Telecommunications) 4,000,000 2,441,850
General Electric
Supplier of diversified
electronics (Electronics) 1,250,000 10,217,930
Ilion Group++
Networking equipment
distributor (Distribution) 1,616,914 5,313,927
Linx Printing Technology++
Manufacturer of specialized
printers (Miscellaneous) 570,000 1,339,422
Logica
Supplier of computer
services (Computer
and Business Services) 550,000 14,511,028
Misys
Provider of computer
services, and software
and hardware solutions
(Computer Software) 160,000 7,653,360
Premier Farnell
Distributor of electronic
components (Distribution) 350,000 2,092,716
Psion
Manufacturer of hand-held
computers (Computer
Hardware/Peripherals) 523,300 2,428,733
RM
Supplier of integrated
information technology
solutions to educational
markets (Networking/
Communication Infrastructure) 280,000 6,204,975
Shire Pharmaceuticals*
Biotechnology company
specializing in metabolic
bone and Alzheimer's
diseases (Medical Products
and Technology) 304,650 2,216,443
Vodafone
Cellular services operator
(Telecommunications) 1,200,000 13,216,095
------------
135,539,348
------------
- ----------
See footnotes on page 66.
63
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
UNITED STATES 49.51%
3DO*
Developer of video game
software and game
platforms (Computer
Software) 750,000 $ 2,484,375
Activision*
Developer of entertainment
software (Computer Software) 200,000 2,168,750
ADFlex Solutions*
Flexible circuit boards
(Electronics) 175,100 3,802,953
America Online*
Provider of electronic mail,
entertainment, reference, and
interactive publications, as
well as Internet access
(Internet/On Line) 190,000 15,200,000
American Power Conversion*
Manufacturer of constant-
power supply products
(Computer Hardware/
Peripherals) 275,000 8,834,375
Aspect Telecommunications*
Developer and manufacturer
of automated call
distribution equipment
(Networking/Communications
Infrastructure) 200,000 5,737,500
Autodesk
Developer of software for
architectural and mechanical
design, data management,
and mapping (Computer
Software) 100,000 4,693,750
Cadence Design System*
Electronic design automation
software (Computer Software) 400,000 14,525,000
CMP Media (Class A)*++
Magazine and newspaper
publisher (Media) 880,000 20,185,000
Cognex*
Manufacturer of machine
vision systems (Electronics
Capital Equipment) 400,000 9,662,500
Credence Systems*
Manufacturer of automated
semiconductor test
equipment (Electronics
Capital Equipment) 350,000 9,625,000
Electro Scientific Industries*
Manufacturer of memory circuit
repair systems (Electronics
Capital Equipment) 230,000 8,754,375
Electronic Arts*
Developer, marketer, and
distributor of entertainment
software (Computer Software) 350,000 16,165,625
Electronics for Imaging*
Peripherals for color
copiers (Electronics) 500,000 10,234,375
EMC*
Manufacturer of enterprise
storage devices (Computer
Hardware/Peripherals) 650,000 29,981,250
Etec Systems*
Photomask manufacturing
systems (Electronics Capital
Equipment) 200,000 11,337,500
Gartner Group (Class A)*
Provider of information
technology consulting and
training services (Computer
and Business Services) 300,000 9,928,125
GaSonics International*
Developer and supplier
of photoresist removal
equipment (Electronics
Capital Equipment) 400,000 4,925,000
Genesys Telecommunications
Laboratories*
Provider of software for integrating
computing resources with
telephony and telecommunications
media (Computer Software) 235,000 7,027,969
Great Plains Software*
Developer and supplier of
financial management software
(Computer Software) 100,000 3,793,750
- ----------
See footnotes on page 66.
64
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Hadco*
Manufacturer of complex
printed circuit boards
(Electronics) 100,000 $ 3,831,250
HNC Software*
Developer and vendor of
software for mission-critical
decision applications
(Computer Software) 275,000 10,656,250
In Focus Systems*
Manufacturer of portable
projection systems
(Computer Hardware/
Peripherals) 264,700 2,270,630
KLA-Tencor*
Manufacturer of wafer
and metrology equipment
(Electronics Capital
Equipment) 250,000 10,062,500
Kulicke & Soffa Industries*
Manufacturer of semiconductor
packaging equipment
(Electronics Capital Equipment) 600,000 12,862,500
Lattice Semiconductor*
Designer and manufacturer of
programmable logic devices
(Semiconductors) 200,000 9,118,750
Lexmark International Group
(Class A)*
Manufacturer of laser and
inkjet printers and cartridges
(Computer Hardware/
Peripherals) 275,000 15,915,625
Maxim Integrated Products*
Manufacturer of linear and
mixed-signal integrated
circuits (Semiconductors) 485,000 19,566,719
Microchip Technology*
Supplier of field programmable
microcontrollers
(Semiconductors) 400,000 11,325,000
NeoMagic*
Developer and distributor of
microchips combining DRAM,
complex logic, and analog
circuitry (Computer Hardware/
Peripherals) 300,000 6,178,125
Network Associates*
Supplier of network security
and management solutions
(Computer Software) 250,000 17,140,625
Novellus Systems*
Designer and manufacturer of
chemical vapor deposition
equipment (Electronics
Capital Equipment) 450,000 21,515,625
Parametric Technology*
Developer of mechanical
design software
(Computer Software) 330,800 10,575,262
PMC-Sierra*
Provider of high-speed
networking circuits
(Semiconductors) 200,000 9,081,250
REMEC*
Designer and manufacturer of
multi-function modules for
microwave transmission systems
(Networking/Communication
Infrastructure) 200,000 4,950,000
Sawtek*
Designer, developer,
manufacturer, and distributor
of electronic signaling
components (Electronics) 250,000 7,625,000
SportsLine*
Provider of on-line interactive
sports information and
programming (Internet/On Line) 100,000 3,500,000
Storage Technology*
Designer and manufacturer
of tape- and disk-based
data storage equipment
(Computer Hardware/
Peripherals) 250,000 21,109,375
- ----------
See footnotes on page 66.
65
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1998
Seligman Henderson Global Technology Fund
SHARES VALUE
-------- ------------
UNITED STATES (continued)
Structural Dynamics Research*
Developer of mechanical
design software
(Computer Software) 750,000 $ 21,234,375
Synopsys*
Developer of integrated
circuit design software
(Computer Software) 400,000 17,175,000
Teradyne*
Manufacturer of semiconductor
test equipment (Electronics
Capital Equipment) 400,000 14,600,000
Veeco Instruments*
Ion beam etching and surface
measurement systems
(Electronics Capital
Equipment) 300,000 12,187,500
------------
461,548,533
------------
TOTAL COMMON STOCKS
(Cost $706,302,573) 911,099,977
------------
PRINCIPAL
AMOUNT VALUE
--------- ------------
CONVERTIBLE BONDS 0.24%
(Cost $2,000,000)
UNITED STATES 0.24%
HNC Software
4 3/4%, 3/1/2003
(Computer Software) $2,000,000 $ 2,225,000
------------
TOTAL INVESTMENTS 97.97%
(Cost $708,302,573) 913,324,977
OTHER ASSETS
LESS LIABILITIES 2.03% 18,917,196
------------
NET ASSETS 100.00% $932,242,173
============
- ----------
* 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.
66
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1998
<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* ........................... $ 98,243,579 $ 92,727,050 $ 209,775,079 $ 1,062,557,648 $ 911,099,977
Bonds .................................... -- 95,879 -- 3,144,329 2,225,000
Preferred stocks ......................... -- -- -- 6,811,548 --
------------- ------------ ------------- --------------- -------------
Total investments ........................... 98,243,579 92,822,929 209,775,079 1,072,513,525 913,324,977
Cash ........................................ -- 5,007,277 4,029,878 22,883,619 17,146,174
Receivable for securities sold .............. 1,305,404 -- 58,508 9,387,745 2,763,665
Receivable for Capital Stock sold ........... 1,055,355 379,528 455,570 6,529,302 3,579,324
Receivable for dividends and interest ....... 486,820 39,960 414,307 3,449,915 485,527
Unrealized appreciation on forward
currency contracts .......................... 312,195 -- 504,647 1,815,565 25,901
Expenses prepaid to shareholder service agent 33,902 51,296 70,804 380,326 351,818
Other ....................................... 30,261 30,602 30,267 75,072 51,859
------------- ------------ ------------- --------------- -------------
Total Assets ................................ 101,467,516 98,331,592 215,339,060 1,117,035,069 937,729,245
------------- ------------ ------------- --------------- -------------
LIABILITIES:
Payable for securities purchased ............ 1,212,304 298,326 359,125 6,028,768 --
Payable for Capital Stock repurchased ....... 199,938 592,831 759,234 4,132,019 3,875,872
Payable to custodian ........................ 55,656 -- -- -- --
Unrealized depreciation on forward
currency contracts .......................... -- 622 -- 729 --
Accrued expenses, taxes, and other .......... 236,100 261,239 395,068 2,043,439 1,611,200
------------- ------------ ------------- --------------- -------------
Total Liabilities ........................... 1,703,998 1,153,018 1,513,427 12,204,955 5,487,072
------------- ------------ ------------- --------------- -------------
Net Assets .................................. $ 99,763,518 $ 97,178,574 $ 213,825,633 $ 1,104,830,114 $ 932,242,173
============= ============ ============= =============== =============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A .................................. $ 2,435 $ 5,231 $ 10,942 $ 25,946 $ 41,535
Class B .................................. 467 3,683 2,162 16,874 4,786
Class D .................................. 2,216 3,415 6,854 22,514 17,319
Additional paid-in capital .................. 75,639,583 93,862,702 144,988,748 903,285,369 709,023,520
Accumulated net investment loss ............. (301,105) (1,019,807) (1,141,905) (5,603,476) (5,754,944)
Undistributed/accumulated net realized gain
(loss) on investments ....................... 1,290,534 (6,213,216) 7,966,549 11,509,195 23,864,570
Net unrealized appreciation of investments .. 24,514,972 12,184,769 66,545,789 218,004,244 216,310,535
Net unrealized depreciation on translation of
assets and liabilities denominated in foreign
currencies and forward currency contracts ... (1,385,584) (1,648,203) (4,553,506) (22,430,552) (11,265,148)
------------- ------------ ------------- --------------- -------------
NET ASSETS .................................. $ 99,763,518 $ 97,178,574 $ 213,825,633 $ 1,104,830,114 $ 932,242,173
============= ============ ============= =============== =============
NET ASSETS:
Class A .................................. $ 48,529,845 $ 41,562,203 $ 118,302,578 $ 450,217,441 $ 616,165,979
Class B .................................. $ 8,921,809 $ 28,860,404 $ 22,910,322 $ 280,363,692 $ 68,514,338
Class D .................................. $ 42,311,864 $ 26,755,967 $ 72,612,733 $ 374,248,981 $ 247,561,856
SHARES OF CAPITAL STOCK OUTSTANDING:
Class A .................................. 2,434,558 5,230,719 10,941,880 25,946,390 41,534,639
Class B .................................. 467,254 3,682,850 2,162,375 16,873,968 4,786,203
Class D .................................. 2,216,130 3,415,264 6,853,495 22,513,391 17,319,446
NET ASSET VALUE PER SHARE:
Class A .................................. $ 19.93 $ 7.95 $ 10.81 $ 17.35 $ 14.83
Class B .................................. $ 19.09 $ 7.84 $ 10.59 $ 16.62 $ 14.31
Class D .................................. $ 19.09 $ 7.83 $ 10.59 $ 16.62 $ 14.29
</TABLE>
- ----------
* Includes affiliated issuers (issuers in which a Series' holdings
representing 5% or more of the outstanding voting securities) with cost of
$22,404,363 and $22,780,953, and value of $35,223,430 and $26,838,349,
respectively, for the Global Smaller Companies Fund and the Global
Technology Fund.
See Notes to Financial Statements.
67
<PAGE>
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1998
<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* ...................................... $ 718,899 $ 334,534 $ 889,155 $ 4,668,093 $ 1,156,900
Interest ........................................ 47,262 258,886 98,262 609,330 1,199,096
------------ ------------ ------------ ------------- -------------
Total Investment Income** ....................... 766,161 593,420 987,417 5,277,423 2,355,996
------------ ------------ ------------ ------------- -------------
EXPENSES:
Management fees ................................. 462,504 602,781 970,021 5,046,807 4,264,088
Distribution and service fees ................... 282,648 324,518 555,131 3,478,907 2,116,733
Shareholder account services .................... 112,595 172,549 242,812 1,372,482 1,174,444
Custody and related services .................... 61,102 59,985 75,025 369,937 226,739
Registration .................................... 33,938 31,817 28,127 105,581 104,657
Auditing and legal fees ......................... 26,109 29,116 26,177 26,782 26,624
Shareholder reports and communications .......... 22,300 26,500 31,700 200,208 271,393
Directors' fees and expenses .................... 7,860 8,797 9,295 36,571 26,131
Miscellaneous ................................... 3,095 3,157 5,651 16,788 14,019
------------ ------------ ------------ ------------- -------------
Total Expenses .................................. 1,012,151 1,259,220 1,943,939 10,654,063 8,224,828
------------ ------------ ------------ ------------- -------------
Net Investment Loss ............................. (245,990) (665,800) (956,522) (5,376,640) (5,868,832)
------------ ------------ ------------ ------------- -------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments*** ...... 4,782,351 (1,823,902) 10,434,055 34,020,801 29,523,476
Net realized loss from foreign currency
transactions*** ................................. (1,389,030) (1,119,993) (2,178,266) (16,812,047) (1,849,830)
Net change in unrealized appreciation
of investments .................................. 14,226,537 10,145,066 32,668,525 136,262,945 109,279,994
Net change in unrealized depreciation on
translation of assets and liabilities denominated
in foreign currencies and forward
currency contracts .............................. (703,051) 615,238 (572,283) (751,480) (3,636,846)
------------ ------------ ------------ ------------- -------------
Net Gain on Investments and Foreign
Currency Transactions ........................... 16,916,807 7,816,409 40,352,031 152,720,219 133,316,794
------------ ------------ ------------ ------------- -------------
Increase in Net Assets
from Operations ................................. $ 16,670,817 $ 7,150,609 $ 39,395,509 $ 147,343,579 $ 127,447,962
============ ============ ============ ============= =============
- ----------
* Includes dividend income from affiliated
issuers as follows: ......................... -- -- -- -- $ 79,847
** Net of foreign taxes withheld as follows: ... $96,172 $24,752 $82,819 $624,428 178,128
*** Includes net realized gain (including
effect of foreign currency transactions)
from affiliated issuers as follows: ......... -- -- -- 586,695 --
</TABLE>
See Notes to Financial Statements.
68
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS
FUND GROWTH FUND
----------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/98 10/31/97 4/30/98 10/31/97
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ................................ $ (245,990) $ (634,722) $ (665,800) $ (882,224)
Net realized gain (loss) on investments ............ 4,782,351 12,612,987 (1,823,902) (148,704)
Net realized loss from foreign currency transactions (1,389,030) (6,357,450) (1,119,993) (2,880,868)
Net change in unrealized appreciation/depreciation
of investments ..................................... 14,226,537 1,745,746 10,145,066 2,540,710
Net change in unrealized depreciation on translation
of assets and liabilities denominated in foreign
currencies and forward currency contracts .......... (703,051) 1,928,031 615,238 (1,858,237)
------------ ------------- ------------- -------------
Increase (Decrease) in Net Assets from Operations .. 16,670,817 9,294,592 7,150,609 (3,229,323)
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A .......................................... (3,073,832) (2,600,409) -- --
Class B .......................................... (442,506) (155,283) -- --
Class D .......................................... (2,927,252) (2,512,690) -- --
------------ ------------- ------------- -------------
Decrease in Net Assets from Distributions .......... (6,443,590) (5,268,382) -- --
------------ ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A .......................................... 5,994,713 8,433,918 5,344,675 24,772,191
Class B .......................................... 1,787,925 3,830,342 2,818,673 21,632,060
Class D .......................................... 2,560,251 7,260,659 2,178,086 16,452,673
Exchanged from associated Funds:
Class A .......................................... 19,988,253 42,509,534 9,150,232 32,454,783
Class B .......................................... 2,366,624 546,088 256,207 3,193,456
Class D .......................................... 15,375,336 17,279,201 1,746,092 18,323,632
Shares issued in payment of gain distributions:
Class A .......................................... 2,644,651 1,907,643 -- --
Class B .......................................... 416,869 145,807 -- --
Class D .......................................... 2,517,142 2,266,472 -- --
------------ ------------- ------------- -------------
Total .............................................. 53,651,764 84,179,664 21,493,965 116,828,795
------------ ------------- ------------- -------------
Cost of shares repurchased:
Class A .......................................... (10,269,588) (16,889,634) (6,629,798) (12,525,580)
Class B .......................................... (496,003) (285,808) (2,429,088) (2,633,033)
Class D .......................................... (6,061,667) (13,972,244) (3,963,519) (4,107,703)
Exchanged into associated Funds:
Class A .......................................... (21,149,691) (43,254,302) (13,517,376) (19,719,002)
Class B .......................................... (2,300,037) (811,812) (2,681,218) (2,336,033)
Class D .......................................... (17,272,520) (21,316,046) (6,383,844) (12,208,736)
------------ ------------- ------------- -------------
Total .............................................. (57,549,506) (96,529,846) (35,604,843) (53,530,087)
------------ ------------- ------------- -------------
Increase (Decrease) in Net Assets from
Capital Share Transactions ......................... (3,897,742) (12,350,182) (14,110,878) 63,298,708
------------ ------------- ------------- -------------
Increase (Decrease) in Net Assets .................. 6,329,485 (8,323,972) (6,960,269) 60,069,385
NET ASSETS:
Beginning of period ................................ 93,434,033 101,758,005 104,138,843 44,069,458
------------ ------------- ------------- -------------
End of Period ...................................... $ 99,763,518 $ 93,434,033 $ 97,178,574 $ 104,138,843
============ ============= ============= =============
<CAPTION>
GLOBAL GROWTH
OPPORTUNITIES FUND
------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/98 10/31/97
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment loss ................................ $ (956,522) $ (1,712,413)
Net realized gain (loss) on investments ............ 10,434,055 14,475,563
Net realized loss from foreign currency transactions (2,178,266) (5,288,647)
Net change in unrealized appreciation/depreciation
of investments ..................................... 32,668,525 16,851,124
Net change in unrealized depreciation on translation
of assets and liabilities denominated in foreign
currencies and forward currency contracts .......... (572,283) (1,171,623)
------------- -------------
Increase (Decrease) in Net Assets from Operations .. 39,395,509 23,154,004
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A .......................................... (4,341,727) --
Class B .......................................... (769,002) --
Class D .......................................... (2,571,099) --
------------- -------------
Decrease in Net Assets from Distributions .......... (7,681,828) --
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A .......................................... 2,879,466 12,893,684
Class B .......................................... 2,416,719 9,863,991
Class D .......................................... 2,866,924 11,847,943
Exchanged from associated Funds:
Class A .......................................... 7,237,556 4,188,658
Class B .......................................... 1,029,270 1,014,306
Class D .......................................... 3,693,605 5,672,140
Shares issued in payment of gain distributions:
Class A .......................................... 3,953,481 --
Class B .......................................... 658,995 --
Class D .......................................... 2,334,502 --
------------- -------------
Total .............................................. 27,070,518 45,480,722
------------- -------------
Cost of shares repurchased:
Class A .......................................... (13,907,955) (24,937,167)
Class B .......................................... (2,171,001) (1,352,960)
Class D .......................................... (7,844,001) (8,496,389)
Exchanged into associated Funds:
Class A .......................................... (8,868,971) (5,055,701)
Class B .......................................... (1,572,264) (980,251)
Class D .......................................... (3,265,617) (5,447,579)
------------- -------------
Total .............................................. (37,629,809) (46,270,047)
------------- -------------
Increase (Decrease) in Net Assets from
Capital Share Transactions ......................... (10,559,291) (789,325)
------------- -------------
Increase (Decrease) in Net Assets .................. 21,154,390 22,364,679
NET ASSETS:
Beginning of period ................................ 192,671,243 170,306,564
------------- -------------
End of Period ...................................... $ 213,825,633 $ 192,671,243
============= =============
</TABLE>
- ----------
See Notes to Financial Statements.
69
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
---------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/98 10/31/97 4/30/98 10/31/97
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ................................ $ (5,376,640) $ (3,884,361) $ (5,868,832) $ (11,314,644)
Net realized gain on investments ................... 34,020,801 48,603,936 29,523,476 160,468,225
Net realized loss from foreign
currency transactions .............................. (16,812,047) (7,015,314) (1,849,830) (2,395,338)
Net change in unrealized appreciation/depreciation
of investments ..................................... 136,262,945 49,634,066 109,279,994 83,247,639
Net change in unrealized depreciation on translation
of assets and liabilities denominated in foreign
currencies and forward currency contracts .......... (751,480) (18,276,737) (3,636,846) (1,868,340)
--------------- --------------- ------------- -------------
Increase in Net Assets from Operations ............. 147,343,579 69,061,590 127,447,962 228,137,542
--------------- --------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A .......................................... (17,124,087) (16,938,227) (88,901,967) --
Class B .......................................... (10,275,288) (5,226,787) (8,378,405) --
Class D .......................................... (15,357,547) (14,328,867) (36,604,731) --
--------------- --------------- ------------- -------------
Decrease in Net Assets from Distributions .......... (42,756,922) (36,493,881) (133,885,103) --
--------------- --------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A .......................................... 41,812,899 161,210,830 22,325,285 53,544,965
Class B .......................................... 23,977,412 160,923,469 10,113,928 30,651,040
Class D .......................................... 22,085,411 129,977,455 10,202,957 27,634,257
Exchanged from associated Funds:
Class A .......................................... 91,882,215 38,707,367 74,085,927 131,077,214
Class B .......................................... 3,390,454 8,353,794 2,891,802 7,378,122
Class D .......................................... 36,474,759 22,459,122 106,274,502 31,456,056
Shares issued in payment of gain distributions:
Class A .......................................... 15,984,486 15,752,220 82,959,552 --
Class B .......................................... 9,575,153 4,800,702 7,697,781 --
Class D .......................................... 14,283,344 13,378,106 34,229,560 --
--------------- --------------- ------------- -------------
Total .............................................. 259,466,133 555,563,065 350,781,294 281,741,654
--------------- --------------- ------------- -------------
Cost of shares repurchased:
Class A .......................................... (78,016,256) (100,080,081) (60,259,984) (119,817,104)
Class B .......................................... (14,574,932) (19,743,793) (2,663,326) (4,478,196)
Class D .......................................... (50,361,011) (61,956,065) (22,155,655) (46,935,136)
Exchanged into associated Funds:
Class A .......................................... (99,686,818) (46,909,181) (81,756,932) (141,838,011)
Class B .......................................... (16,141,363) (17,273,307) (3,040,374) (6,449,635)
Class D .......................................... (53,063,990) (29,350,663) (111,410,780) (37,285,917)
--------------- --------------- ------------- -------------
Total .............................................. (311,844,370) (275,313,090) (281,287,051) (356,803,999)
--------------- --------------- ------------- -------------
Increase (Decrease) in Net Assets from
Capital Share Transactions ......................... (52,378,237) 280,249,975 69,494,243 (75,062,345)
--------------- --------------- ------------- -------------
Increase in Net Assets ............................. 52,208,420 312,817,684 63,057,102 153,075,197
NET ASSETS:
Beginning of period ................................ 1,052,621,694 739,804,010 869,185,071 716,109,874
--------------- --------------- ------------- -------------
End of Period ...................................... $ 1,104,830,114 $ 1,052,621,694 $ 932,242,173 $ 869,185,071
=============== =============== ============= =============
</TABLE>
- ----------
See Notes to Financial Statements.
70
<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"). Each
Series of the Fund offers three classes of shares.
Class A shares are sold with an initial sales charge of up to 4.75% and a
continuing service fee of up to 0.25% on an annual basis. Class 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 an exchange 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 for which there is no last
sales price, 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
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS
equivalents of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of
portfolio securities and other foreign currency denominated assets and
liabilities at period end, resulting from changes in exchange rates.
The Fund separates that portion of the results of operations resulting
from changes in the foreign exchange rates from the fluctuations arising
from changes in the market prices of securities held in the portfolio.
Similarly, the Fund separates the effect of changes in foreign exchange
rates from the fluctuations arising from changes in the market prices of
portfolio securities sold during the period.
c. 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.
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 six months ended April 30,
1998, were as follows:
SERIES PURCHASES SALES
- ------------------ ------------ ------------
International Fund $ 30,168,831 $ 38,331,022
Emerging Markets
Growth Fund 38,460,392 39,738,658
Global Growth
Opportunities Fund 44,909,938 60,078,286
Global Smaller
Companies Fund 229,200,070 341,025,713
Global Technology Fund 215,444,415 274,998,456
At April 30, 1998, 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
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 $ 26,527,642 $ 3,691,346
Emerging Markets
Growth Fund 15,152,333 4,615,991
Global Growth
Opportunities Fund 70,165,703 8,663,070
Global Smaller
Companies Fund 268,424,467 74,615,374
Global Technology Fund 282,303,557 77,281,153
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 other Series' average daily net assets, of which 1.15% and 0.90%,
respectively, are paid to the Subadviser.
On March 30, 1998, AMP Limited, an Australian life insurance and financial
services company, completed an acquisition of Henderson plc, which resulted in
the termination of the Fund's subadvisory agreements. The Fund's Board of
Directors approved interim subadvisory agreements pursuant to which the
Subadviser will continue to supervise and direct the Fund's global investments
until new subadvisory arrangements become effective. The Fund's Directors also
approved a proposed new subadvisory agreement pursuant to which another
subsidiary of Henderson plc would serve as subadviser to the Fund and be
responsible for supervising and directing the Fund's international investments.
The Manager would retain responsibility for the Fund's US investments. Both the
interim subadvisory agreement and the new subadvisory agreement are subject to
approval by vote of the shareholders, scheduled for June 30, 1998.
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 sales of Class A shares
as follows:
DISTRIBUTOR DEALER
SERIES CONCESSIONS COMMISSIONS
- ------------------ ----------- ------------
International Fund $ 4,845 $ 38,023
Emerging Markets
Growth Fund 7,824 60,758
Global Growth
Opportunities Fund 8,705 68,760
Global Smaller
Companies Fund 52,903 423,884
Global Technology Fund 79,924 646,275
Each Series of the Fund has an Administration, Shareholder Services and
Distribution Plan (the "Plan") with respect to distribution of its shares. Under
the Plan, with respect to Class A shares, service organizations can enter into
agreements with the Distributor and receive a continuing fee of up to 0.25% on
an annual basis, payable quarterly, of the average daily net assets of the Class
A shares attributable to the particular service organizations for providing
personal services and/or the maintenance of shareholder accounts. The
Distributor charges such fees to the Fund pursuant to the Plan. For the six
months ended April 30, 1998, 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 $46,865,
$46,890, $129,596, $490,549, and $687,996, respectively, or 0.21%, 0.23%, 0.24%,
0.24%, and 0.24%, 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
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS
third party (the "Purchaser") which provides funding to the Distributor to
enable it to pay commissions to dealers at the time of the sale of the related
Class B shares.
For the six months ended April 30, 1998, 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 $ 34,522 $ 201,261
Emerging Markets
Growth Fund 138,729 138,899
Global Growth
Opportunities Fund 99,341 326,194
Global Smaller
Companies Fund 1,241,141 1,747,217
Global Technology Fund 288,430 1,140,307
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 six months
ended April 30, 1998, such charges were as follows:
SERIES AMOUNT
- ------------------ -------
International Fund $ 3,909
Emerging Markets Growth Fund 12,660
Global Growth Opportunities Fund 4,723
Global Smaller Companies Fund 67,025
Global Technology Fund 29,035
The Distributor has sold its rights to collect any CDSL imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSL and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amounts of such
payments and the Class B shares distribution fees retained by the Distributor
for the six months ended April 30, 1998, were as follows:
SERIES AMOUNT
- ------------------ -------
International Fund $ 3,330
Emerging Markets Growth Fund 6,455
Global Growth Opportunities Fund 5,156
Global Smaller Companies Fund 53,780
Global Technology Fund 21,281
Seligman Services, Inc., an affiliate of the Manager, is eligible to
receive commissions from certain sales of shares of the Fund, as well as
distribution and service fees pursuant to the Plan. For the six months ended
April 30, 1998, Seligman Services, Inc. received commissions for the sales of
shares of each Series and distribution and service fees, pursuant to the Plan,
as follows:
DISTRIBUTION
SERIES COMMISSIONS AND SERVICE FEES
- ------------------ ----------- ----------------
International Fund $ 1,146 $ 9,858
Emerging Markets
Growth Fund 494 3,436
Global Growth
Opportunities Fund 1,494 4,130
Global Smaller
Companies Fund 8,390 22,936
Global Technology Fund 16,206 46,108
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 $ 112,595
Emerging Markets Growth Fund 172,549
Global Growth Opportunities Fund 242,812
Global Smaller Companies Fund 1,372,482
Global Technology Fund 1,174,444
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. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of the
Fund or other funds in the Seligman Group of Investment Companies. Deferred fees
and related accrued earnings are not deductible by the Fund for federal income
tax purposes until such amounts are paid. The cost of such fees and earnings
accrued thereon is included in directors' fees and expenses, and the accumulated
balances thereof at April 30, 1998, are included in other liabilities, as
follows:
SERIES AMOUNT
- ------------------ -------
International Fund $11,655
Emerging Markets GrowthFund 1,513
Global Growth Opportunities Fund 2,971
Global Smaller Companies Fund 10,875
Global Technology Fund 7,626
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 on an annual basis. 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 of an
issuer represent 5% or more of the outstanding voting securities of the issuer.
A summary of the Fund's transactions in the securities of these issuers during
the six months ended April 30, 1998, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS SALES
BEGINNING PURCHASES AND ENDING REALIZED DIVIDEND ENDING
AFFILIATE SHARES AND ADDITIONS REDUCTIONS SHARES GAIN (LOSS) INCOME VALUE
- --------- --------- ------- ------- --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
GLOBAL SMALLER
COMPANIES FUND
Bon Appetit Holding .. 12,353 -- 2,700 9,653 $ 431,795 -- $ 6,298,229
La Doria ............. 2,252,166 41,925 240,000 2,054,091 (274,730) -- 7,536,885
L'Europeenne
d'Extincteurs ...... 142,402 -- -- 142,402 -- -- 11,903,316
FactSet Research
Systems ........... 500,000 -- 229,000 271,000 1,954,899 -- 9,485,000
Simon Transportation
Services ........... 270,000 -- 270,000 -- (1,525,269) -- --
----------- ----------- -----------
$ 586,695* -- $35,223,430
=========== =========== ===========
GLOBAL TECHNOLOGY FUND
CMP Media (Class A) .. 700,000 180,000 -- 880,000 -- -- $20,185,000
IlionGroup ........... 1,616,914 -- -- 1,616,914 -- $ 63,699 5,313,927
Linx Printing
Technology ......... 570,000 -- -- 570,000 -- 16,148 1,339,422
----------- ----------- -----------
-- $ 79,847 $26,838,349
=========== =========== ===========
</TABLE>
- ----------
* Includes net realized loss from foreign currency transactions of $132,951.
75
<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 April 30, 1998, the Board of Directors had classified 400,000,000 shares for
the International Fund, 100,000,000 shares for the Emerging Markets Growth Fund,
and 500,000,000 shares each for the Global Growth Opportunities Fund, the Global
Smaller Companies Fund and the Global Technology Fund, all at a par value of
$.001 per share.
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS GLOBAL GROWTH
FUND GROWTH FUND OPPORTUNITIES FUND
--------------------------- --------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/98 10/31/97 4/30/98 10/31/97 4/30/98 10/31/97
---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A 325,006 469,762 717,928 2,993,423 291,802 1,449,286
Class B 100,309 219,118 384,084 2,612,415 252,543 1,123,386
Class D 145,412 418,939 295,973 2,012,007 297,421 1,356,808
Exchanged from associated Funds:
Class A 1,144,769 2,324,501 1,243,602 4,057,896 726,896 476,273
Class B 128,963 30,506 34,782 391,346 108,779 110,609
Class D 897,278 987,349 238,426 2,226,146 385,451 649,300
Shares issued in payment of gain
distributions:
Class A 162,847 112,811 -- -- 455,996 --
Class B 26,671 8,858 -- -- 77,256 --
Class D 161,045 137,696 -- -- 273,681 --
---------- ---------- ---------- ---------- ---------- ----------
Total 3,092,300 4,709,540 2,914,795 14,293,233 2,869,825 5,165,662
---------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A (567,043) (966,373) (890,368) (1,498,674) (1,467,281) (2,814,964)
Class B (29,002) (15,472) (330,873) (312,134) (232,717) (147,394)
Class D (349,482) (822,399) (538,623) (502,678) (833,002) (965,125)
Exchanged into associated Funds:
Class A (1,203,418) (2,337,951) (1,842,241) (2,482,147) (912,970) (568,846)
Class B (126,668) (45,879) (371,268) (284,989) (173,971) (110,456)
Class D (1,006,114) (1,216,560) (882,437) (1,454,997) (363,496) (626,078)
---------- ---------- ---------- ---------- ---------- ----------
Total (3,281,727) (5,404,634) (4,855,810) (6,535,619) (3,983,437) (5,232,863)
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) in shares (189,427) (695,094) (1,941,015) 7,757,614 (1,113,612) (67,201)
========== ========== ========== ========== ========== ==========
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/98 10/31/97 4/30/98 10/31/97
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Sale of shares:
Class A 2,659,683 10,709,397 1,658,158 3,700,869
Class B 1,602,170 11,006,362 778,358 2,147,619
Class D 1,481,017 8,914,612 791,413 1,953,820
Exchanged from associated Funds:
Class A 5,586,584 2,567,331 5,516,426 9,603,055
Class B 234,062 578,628 229,993 599,186
Class D 2,320,128 1,545,821 8,375,813 2,118,807
Shares issued in payment of gain
distributions:
Class A 1,085,903 1,069,396 6,425,992 --
Class B 677,168 335,948 615,822 --
Class D 1,009,424 936,187 2,740,557 --
---------- ---------- ---------- ----------
Total 16,656,139 37,663,682 27,132,532 20,123,356
----------- ----------- ----------- -----------
Shares repurchased:
Class A (5,066,411) (6,615,043) (4,496,524) (8,669,868)
Class B (988,449) (1,358,539) (203,254) (325,415)
Class D (3,429,369) (4,192,374) (1,715,184) (3,500,176)
Exchanged into associated Funds:
Class A (6,120,754) (3,071,754) (6,095,886) (10,296,821)
Class B (1,118,977) (1,159,574) (234,771) (519,418)
Class D (3,491,890) (1,979,913) (8,678,080) (2,561,251)
----------- ----------- ----------- -----------
Total (20,215,850) (18,377,197) (21,423,699) (25,872,949)
----------- ----------- ----------- -----------
Increase (decrease) in shares (3,559,711) 19,286,485 5,708,833 (5,749,593)
=========== =========== =========== ===========
</TABLE>
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. Outstanding Forward Exchange Currency Contracts -- At April 30, 1998, the
Fund had outstanding forward exchange currency contracts to purchase or sell
foreign currencies as follows:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN IN EXCHANGE SETTLEMENT APPRECIATION
CONTRACT CURRENCY FOR US $ DATE VALUE US $ (DEPRECIATION)
- -------- -------- ----------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL FUND
Purchases:
British pounds 220,717 368,332 5/1/98 369,149 $ 817
Sales:
Japanese yen 612,429,250 4,930,000 5/20/98 4,618,622 311,378
-----------
$ 312,195
===========
EMERGING MARKETS GROWTH FUND PURCHASES:
Purchases:
Mexican pesos 2,169,685 256,131 5/4/98 255,573 $ (558)
Sales:
Portuguese escudos 3,954,466 21,416 5/4/98 21,480 (64)
-----------
$ (622)
===========
GLOBAL GROWTH OPPORTUNITIES FUND
Sales:
Japanese yen 992,557,750 7,990,000 5/20/98 7,485,353 $ 504,647
===========
GLOBAL SMALLER COMPANIES FUND
Purchases:
Australian dollars 129,139 83,682 5/1/98 83,882 $ 200
British pounds 60,095 100,358 5/5/98 100,508 150
-----------
350
-----------
Sales:
French francs 1,010,420 167,399 5/4/98 167,914 (515)
Singapore dollars 192,144 121,127 5/5/98 121,341 (214)
Japanese yen 3,570,226,500 28,740,000 5/20/98 26,924,785 1,815,215
-----------
1,814,486
-----------
$ 1,814,836
===========
GLOBAL TECHNOLOGY FUND
Sales:
Japanese yen 2,622,000,000 20,000,000 7/31/98 19,974,099 $ 25,901
===========
</TABLE>
77
<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.
INTERNATIONAL FUND
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED ----------------------------------------------------------------------
4/30/98 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ... $17.92 $17.17 $16.71 $17.67 $15.98 $11.89
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) ........... --(a) (0.04) 0.05 0.06 0.04 0.04
Net realized and unrealized investment
gain (loss) ............................ 3.62 2.47 1.77 (0.42) 0.91 4.25
Net realized and unrealized gain (loss)
from foreign currency transactions ..... (0.39) (0.79) (0.44) 0.09 1.08 (0.17)
---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) from Investment
Operations ............................. 3.23 1.64 1.38 (0.27) 2.03 4.12
Dividends paid ......................... -- -- -- -- (0.01) (0.03)
Distributions from net gain realized ... (1.22) (0.89) (0.92) (0.69) (0.33) --
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in Net Asset
Value .................................. 2.01 0.75 0.46 (0.96) 1.69 4.09
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period ......... $19.93 $17.92 $17.17 $16.71 $17.67 $15.98
========== ========== ========== ========== ========== ==========
TOTAL RETURN BASED ON NET ASSET VALUE: . 19.59% 9.83% 8.43% (1.24)% 12.85% 34.78%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ......... 1.71%+ 1.78% 1.81% 1.69% 1.63% 1.75%
Net investment income (loss) to average
net assets ............................ (0.13)%+ (0.23)% 0.28% 0.35% 0.27% 0.27%
Portfolio turnover ..................... 32.68% 83.11% 55.71% 60.70% 39.59% 46.17%
Net Assets, End of Period (000s omitted) $48,530 $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 82.
78
<PAGE>
FINANCIAL HIGHLIGHTS
INTERNATIONAL FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------
SIX MONTHS YEAR 4/22/96*
ENDED ENDED TO
4/30/98 10/31/97 10/31/96
--------- --------- ---------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ............. $17.30 $16.74 $17.38
--------- --------- ---------
Net investment loss .............................. (0.08) (0.18) (0.03)
Net realized and unrealized investment gain (loss) 3.48 2.42 (0.54)
Net realized and unrealized loss from foreign
currency transactions ............................ (0.39) (0.79) (0.07)
--------- --------- ---------
Increase (Decrease) from Investment
Operations ....................................... 3.01 1.45 (0.64)
Dividends paid ................................... -- -- --
Distributions from net gain realized ............. (1.22) (0.89) --
--------- --------- ---------
Net Increase (Decrease) in
Net Asset Value .................................. 1.79 0.56 (0.64)
--------- --------- ---------
Net Asset Value, End of Period ................... $19.09 $17.30 $16.74
========= ========= =========
TOTAL RETURN BASED ON NET ASSET VALUE: ........... 18.97% 8.90% (3.68)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................... 2.57%+ 2.58% 2.66%+
Net investment loss to average net assets ........ (0.99)%+ (1.03)% (0.35)%+
Portfolio turnover ............................... 32.68% 83.11% 55.71%+++
Net Assets, End of Period (000s omitted) ......... $8,922 $6,350 $2,843
<CAPTION>
CLASS D
-----------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31, 9/21/93*
ENDED --------------------------------------- TO
4/30/98 1997 1996 1995 1994 10/31/93
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ............... $17.30 $16.74 $16.43 $17.53 $15.96 $15.23
------ ------ ------ ------ ------ ------
Net investment loss ................................ (0.08) (0.18) (0.08) (0.07) (0.09) (0.03)
Net realized and unrealized investment gain (loss) . 3.48 2.42 1.75 (0.43) 0.91 1.17
Net realized and unrealized gain (loss)
from foreign currency transactions ................. (0.39) (0.79) (0.44) 0.09 1.08 (0.41)
------ ------ ------ ------ ------ ------
Increase (Decrease) from Investment
Operations ......................................... 3.01 1.45 1.23 (0.41) 1.90 0.73
Dividends paid ..................................... -- -- -- -- -- --
Distributions from net gain realized ............... (1.22) (0.89) (0.92) (0.69) (0.33) --
------ ------ ------ ------ ------ ------
Net Increase (Decrease) in
Net Asset Value .................................... 1.79 0.56 0.31 (1.10) 1.57 0.73
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ..................... $19.09 $17.30 $16.74 $16.43 $17.53 $15.96
====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: ............. 18.97% 8.90% 7.62% (2.08)% 12.03% 4.79%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ..................... 2.57%+ 2.58% 2.64% 2.50% 2.50% 2.50%+
Net investment loss to average net assets .......... (0.99)%+ (1.03)% (0.47)% (0.44)% (0.53)% (1.86)%+
Portfolio turnover ................................. 32.68% 83.11% 55.71% 60.70% 39.59% 46.17%++
Net Assets, End of Period (000s omitted) ........... $42,312 $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 82.
79
<PAGE>
FINANCIAL HIGHLIGHTS
EMERGING MARKETS
GROWTH FUND
<TABLE>
<CAPTION>
CLASS A CLASS B
---------------------------------- --------------------------------
SIX MONTHS YEAR 5/28/96* SIX MONTHS YEAR 5/28/96*
ENDED ENDED TO ENDED ENDED TO
4/30/98 10/31/97 10/31/96 4/30/98 10/31/97 10/31/96
---------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ...... $7.34 $6.78 $7.14 $7.27 $6.76 $7.14
------- ------- ------- ------ ------ ------
Net investment loss ....................... (0.03) (0.05) (0.02) (0.06) (0.11) (0.04)
Net realized and unrealized investment
gain (loss) ............................... 0.68 1.05 (0.25) 0.67 1.06 (0.25)
Net realized and unrealized loss from
foreign currency transactions ............. (0.04) (0.44) (0.09) (0.04) (0.44) (0.09)
------- ------- ------- ------ ------ ------
Increase (Decrease) from Investment
Operations ................................ 0.61 0.56 (0.36) 0.57 0.51 (0.38)
Dividends paid ............................ -- -- -- -- -- --
Distributions from net gain realized ...... -- -- -- -- -- --
------- ------- ------- ------ ------ ------
Net Increase (Decrease) in Net Asset Value 0.61 0.56 (0.36) 0.57 0.51 (0.38)
------- ------- ------- ------ ------ ------
Net Asset Value, End of Period ............ $7.95 $7.34 $6.78 $7.84 $7.27 $6.76
======= ======= ======= ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: .... 8.31% 8.26% (5.04)% 7.84% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............ 2.17%+ 2.27% 2.22%+ 2.94%+ 3.04% 3.00%+
Net investment loss to average net assets . (0.94)%+ (0.56)% (0.69)%+ (1.71)%+ (1.33)% (1.47)%+
Portfolio turnover ........................ 43.85% 84.09% 12.24% 43.85% 84.09% 12.24%
Net Assets, End of Period (000s omitted) .. $41,562 $44,061 $19,864 $28,860 $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>
CLASS D
---------------------------------
SIX MONTHS YEAR 5/28/96*
ENDED ENDED TO
4/30/98 10/31/97 10/31/96
---------- -------- --------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ...... $7.27 $6.76 $7.14
------ ------ ------
Net investment loss ....................... (0.06) (0.11) (0.04)
Net realized and unrealized investment
gain (loss) ............................... 0.66 1.06 (0.25)
Net realized and unrealized loss from
foreign currency transactions ............. (0.04) (0.44) (0.09)
------ ------ ------
Increase (Decrease) from Investment
Operations ................................ 0.56 0.51 (0.38)
Dividends paid ............................ -- -- --
Distributions from net gain realized ...... -- -- --
------ ------ ------
Net Increase (Decrease) in Net Asset Value 0.56 0.51 (0.38)
------ ------ ------
Net Asset Value, End of Period ............ $7.83 $7.27 $6.76
====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: .... 7.70% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............ 2.94%+ 3.04% 3.00%+
Net investment loss to average net assets . (1.71)%+ (1.33)% (1.47)%+
Portfolio turnover ........................ 43.85% 84.09% 12.24%
Net Assets, End of Period (000s omitted) .. $26,756 $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)%+
GLOBAL GROWTH
OPPORTUNITIES FUND
<TABLE>
<CAPTION>
CLASS A CLASS B
---------------------------------- --------------------------------
SIX MONTHS YEAR 11/1/95* SIX MONTHS YEAR 4/22/96*
ENDED ENDED TO ENDED ENDED TO
4/30/98 10/31/97 10/31/96 4/30/98 10/31/97 10/31/96
---------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ...... $9.20 $8.08 $7.14 $9.06 $8.02 $8.04
------- ------- ------- ------ ------ ------
Net investment loss ....................... (0.03) (0.05) (0.03) (0.06) (0.12) (0.04)
Net realized and unrealized investment
gain ...................................... 2.14 1.47 1.12 2.09 1.46 0.06
Net realized and unrealized loss from
foreign currency transactions ............. (0.13) (0.30) (0.15) (0.13) (0.30) (0.04)
------- ------- ------- ------ ------ ------
Increase (Decrease) from
Investment Operations ..................... 1.98 1.12 0.94 1.90 1.04 (0.02)
Dividends paid ............................ -- -- -- -- -- --
Distributions from net gain realized ...... (0.37) -- -- (0.37)
------- ------- ------- ------ ------ ------
Net Increase (Decrease) in Net Asset Value 1.61 1.12 0.94 1.53 1.04 (0.02)
------- ------- ------- ------ ------ ------
Net Asset Value, End of Period ............ $10.81 $9.20 $8.08 $10.59 $9.06 $8.02
======= ======= ======= ====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: .... 22.52% 13.86% 13.17% 21.96% 12.97% (0.25)%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............ 1.67%+ 1.69% 1.91% 2.43%+ 2.45% 2.53%+
Net investment loss to average net assets . (0.65)%+ (0.59)% (0.53)% (1.41)%+ (1.35)% (1.13)%+
Portfolio turnover ........................ 23.27% 79.32% 31.44% 23.27% 79.32% 31.44%+++
Net Assets, End of Period (000s omitted) .. $118,303 $109,060 $107,509 $22,910 $19,311 $9,257
</TABLE>
CLASS D
----------------------------------
SIX MONTHS YEAR 11/1/95*
ENDED ENDED TO
4/30/98 10/31/97 10/31/96
----------- -------- --------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ...... $9.06 $8.02 $7.14
------ ------ ------
Net investment loss ....................... (0.06) (0.12) (0.09)
Net realized and unrealized investment
gain ...................................... 2.09 1.46 1.12
Net realized and unrealized loss from
foreign currency transactions ............. (0.13) (0.30) (0.15)
------ ------ ------
Increase (Decrease) from
Investment Operations ..................... 1.90 1.04 0.88
Dividends paid ............................ -- -- --
Distributions from net gain realized ...... -- -- (0.37)
------ ------ ------
Net Increase (Decrease) in Net Asset Value 1.53 1.04 0.88
------ ------ ------
Net Asset Value, End of Period ............ $10.59 $9.06 $8.02
====== ====== ======
TOTAL RETURN BASED ON NET ASSET VALUE: .... 21.96% 12.97% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............ 2.43%+ 2.45% 2.67%
Net investment loss to average net assets . (1.41)%+ (1.35)% (1.25)%
Portfolio turnover ........................ 23.27% 79.32% 31.44%
Net Assets, End of Period (000s omitted) .. $72,613 $64,300 $53,540
- ----------
See footnotes on page 82.
80
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL SMALLER COMPANIES FUND
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED ------------------------------------------------------
4/30/98 1997 1996 1995 1994 1993
------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ............. $15.62 $15.14 $13.90 $11.93 $9.98 $7.15
------- ------- ------- ------- ------- ------
Net investment income (loss) ..................... (0.05) -- -- (0.02) (0.08) (0.02)
Net realized and unrealized investment gain ...... 2.67 1.61 2.38 2.24 1.57 3.07
Net realized and unrealized gain (loss)
from foreign currency transactions ............... (0.26) (0.40) (0.18) 0.08 0.52 (0.20)
------- ------- ------- ------- ------- ------
Increase from Investment Operations .............. 2.36 1.21 2.20 2.30 2.01 2.85
Dividends paid ................................... -- -- -- -- -- (0.02)
Distributions from net gain realized ............. (0.63) (0.73) (0.96) (0.33) (0.06) --
------- ------- ------- ------- ------- ------
Net Increase in Net Asset Value .................. 1.73 0.48 1.24 1.97 1.95 2.83
------- ------- ------- ------- ------- ------
Net Asset Value, End of Period ................... $17.35 $15.62 $15.14 $13.90 $11.93 $9.98
======= ======= ======= ======= ======= ======
TOTAL RETURN BASED ON NET ASSET VALUE: ........... 15.81% 8.28% 16.95% 20.10% 20.28% 39.86%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................... 1.66%+ 1.67% 1.75% 1.83% 1.92% 1.98%
Net investment income (loss) to average net assets (0.61)%+ 0.02% 0.01% (0.20)% (0.77)% (0.29)%
Portfolio turnover ............................... 22.83% 57.24% 45.38% 63.05% 62.47% 60.03%
Net Assets, End of Period (000s omitted) ......... $450,217 $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)%
<CAPTION>
CLASS B CLASS D
------------------------------------ ----------
SIX MONTHS YEAR 4/22/96* SIX MONTHS
ENDED ENDED TO ENDED
4/30/98 10/31/97 10/31/96 4/30/98
------- ------- ------- -------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ...... $15.04 $14.72 $14.44 $15.05
------- ------- ------- -------
Net investment loss ....................... (0.10) (0.11) (0.06) (0.10)
Net realized and unrealized investment gain 2.57 1.56 0.33 2.56
Net realized and unrealized gain (loss)
from foreign currency transactions ........ (0.26) (0.40) 0.01 (0.26)
------- ------- ------- -------
Increase from Investment Operations ....... 2.21 1.05 0.28 2.20
Dividends paid ............................ -- -- -- --
Distributions from net gain realized ...... (0.63) (0.73) -- (0.63)
------- ------- ------- -------
Net Increase in Net Asset Value ........... 1.58 0.32 0.28 1.57
------- ------- ------- -------
Net Asset Value, End of Period ............ $16.62 $15.04 $14.72 $16.62
======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: .... 15.40% 7.39% 1.94% 15.33%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............ 2.42%+ 2.43% 2.54%+ 2.42%+
Net investment loss to average net assets . (1.37)%+ (0.74)% (0.80)%+ (1.37)%+
Portfolio turnover ........................ 22.83% 57.24% 45.38%+++ 22.83%
Net Assets, End of Period (000s omitted) .. $280,364 $247,600 $103,968 $374,249
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
<CAPTION>
CLASS D
----------------------------------------------------
YEAR ENDED OCTOBER 31, 5/3/93*
----------------------------------------- TO
1997 1996 1995 1994 10/31/93
------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
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)
from 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%++
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 82.
81
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31, 5/23/94*
ENDED ------------------------------- TO
4/30/98 1997 1996 1995 10/31/94
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ......... $15.14 $11.31 $13.05 $8.37 $7.14
------- ------- ------- ------- ------
Net investment loss .......................... (0.07) (0.16) (0.08) (0.10) (0.01)
Net realized and unrealized investment
gain (loss) .................................. 2.17 4.06 (0.92) 4.90 1.08
Net realized and unrealized gain (loss) from
foreign currency transactions ................ (0.09) (0.07) 0.05 (0.05) 0.16
------- ------- ------- ------- ------
Increase (Decrease) from Investment Operations 2.01 3.83 (0.95) 4.75 1.23
Dividends paid ............................... -- -- (0.02) -- --
Distributions from net gain realized ......... (2.32) -- (0.77) (0.07) --
------- ------- ------- ------- ------
Net Increase (Decrease) in Net Asset Value ... (0.31) 3.83 (1.74) 4.68 1.23
------- ------- ------- ------- ------
Net Asset Value, End of Period ............... $14.83 $15.14 $11.31 $13.05 $8.37
======= ======= ======= ======= ======
TOTAL RETURN BASED ON NET ASSET VALUE: ....... 15.57% 33.86% (7.33)% 57.31% 17.23%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 1.67%+ 1.67% 1.75% 1.91% 2.00%+
Net investment loss to average net assets .... (1.12)%+ (1.10)% (0.74)% (0.89)% (0.45)%+
Portfolio turnover ........................... 25.87% 94.06% 73.00% 87.42% 29.20%
Net Assets, End of Period (000s omitted) ..... $616,166 $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)%+
<CAPTION>
CLASS B CLASS D
----------------------------------- ----------
SIX MONTHS YEAR 4/22/96* SIX MONTHS
ENDED ENDED TO ENDED
4/30/98 10/31/97 10/31/96 4/30/98
------- ------- ------- --------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning of Period ......... $14.73 $11.09 $11.47 $14.73
------- ------- ------- --------
Net investment loss .......................... (0.12) (0.26) (0.08) (0.12)
Net realized and unrealized investment
gain (loss) .................................. 2.11 3.97 (0.39) 2.09
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.09) (0.07) 0.09 (0.09)
------- ------- ------- --------
Increase (Decrease) from Investment Operations 1.90 3.64 (0.38) 1.88
Dividends paid ............................... -- -- -- --
Distributions from net gain realized ......... (2.32) -- -- (2.32)
------- ------- ------- --------
Net Increase (Decrease) in Net Asset Value ... (0.42) 3.64 (0.38) (0.44)
------- ------- ------- --------
Net Asset Value, End of Period ............... $14.31 $14.73 $11.09 $14.29
======= ======= ======= ========
TOTAL RETURN BASED ON NET ASSET VALUE: ....... 15.20% 32.82% (3.31)% 15.05%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ............... 2.43%+ 2.42% 2.51%+ 2.43%+
Net investment loss to average net assets .... (1.88)%+ (1.85)% (1.40)%+ (1.88)%+
Portfolio turnover ........................... 25.87% 94.06% 73.00%+++ 25.87%
Net Assets, End of Period (000s omitted) ..... $68,514 $53,046 $18,840 $247,562
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 ..
<CAPTION>
CLASS D
-----------------------------------------------
YEAR ENDED OCTOBER 31, 5/23/94*
---------------------------------- TO
1997 1996 1995 10/31/94
-------- -------- -------- ------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
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)
from 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 ASSET VALUE: ....... 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%
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.
(a) Amount less than $0.01.
+ Annualized.
++ For the year ended October 31, 1993.
+++ For the year ended October 31, 1996.
See Notes to Financial Statements.
82
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders,
Seligman Henderson Global Fund Series, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the International Fund, the Emerging Markets
Growth Fund, the Global Growth Opportunities Fund, the Global Smaller Companies
Fund, and the Global Technology Fund Series of Seligman Henderson Global Fund
Series, Inc. as of April 30, 1998, the related statements of operations for the
six months then ended and of changes in net assets for the six months then ended
and for the year ended October 31, 1997, and the financial highlights for each
of the periods presented. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at April
30, 1998, by correspondence with the Fund's custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each Series of
Seligman Henderson Global Fund Series, Inc. as of April 30, 1998, the results of
their operations, the changes in their net assets, and the financial highlights
for the respective stated periods in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
June 5, 1998
83
<PAGE>
BOARD OF DIRECTORS
John R. Galvin (2)
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, Raytheon Company
Alice S. Ilchman (3)
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
Frank A. McPherson (2)
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow (2)
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Trustee, The New York and Presbyterian Hospital
Betsy S. Michel (2)
Trustee, The Geraldine R. Dodge Foundation
Chairman of the Board of Trustees, St. George's School
William C. Morris (1)
Chairman
Chairman of the Board, J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
James C. Pitney (3)
Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
James Q. Riordan (3)
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Public Broadcasting Service
Richard R. Schmaltz
Managing Director and Director of Investments,
J. & W. Seligman & Co. Incorporated
Trustee Emeritus, Colby College
Robert L. Shafer (3)
Retired Vice President, Pfizer Inc.
James N. Whitson (2)
Director and Consultant, Sammons Enterprises, Inc.
Director, C-SPAN
Director, CommScope, Inc.
Brian T. Zino (1)
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
Director Emeritus
Fred E. Brown
Director and Consultant, J. & W. Seligman & Co. Incorporated
- ----------------
Member: (1) Executive Committee
(2) Audit Committee
(3) Director Nominating Committee
84
<PAGE>
EXECUTIVE OFFICERS
William C. Morris
Chairman
Brian T. Zino
President
Brian Ashford-Russell
Vice President
Peter Bassett
Vice President
Iain C. Clark
Vice President
Nitin Mehta
Vice President
Arsen Mrakovcic
Vice President
Marion S. Schultheis
Vice President
Lawrence P. Vogel
Vice President
Paul H. Wick
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
FOR MORE INFORMATION
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
Subadviser
Seligman Henderson Co.
100 Park Avenue
New York, NY 10017
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder Services
(800) 445-1777 Retirement
Plan Services
(212) 682-7600 Outside the
Continental
United States
(800) 622-4597 24-Hour Automated
Telephone Access
Service
85
<PAGE>
GLOSSARY OF FINANCIAL TERMS
Capital Gain Distribution -- A payment to mutual fund shareholders of profits
realized on the sale of securities in a fund's portfolio. For tax purposes,
these profits may be taxed at different rates, primarily depending upon the
length of time the securities were owned by the fund.
Capital Appreciation/Depreciation -- An increase or decrease in the market value
of a mutual fund's portfolio securities, which is reflected in the net asset
value of the fund's shares. Capital appreciation/depreciation of an individual
security is in relation to the original purchase price.
Compounding -- The change in the value of an investment as shareholders receive
earnings on their investment's earnings. For example, if $1,000 is invested at a
fixed rate of 7% a year, the initial investment is worth $1,070 after one year.
If the return is compounded, second year earnings will not be based on the
original $1,000, but on the $1,070, which includes the first year's earnings.
Contingent Deferred Sales Load (CDSL) -- Depending on the class of shares owned,
a fee charged by a mutual fund when shares are sold back to the fund (the CDSL
expires after a fixed time period).
Dividend -- A payment by a mutual fund, usually derived from the fund's net
investment income (dividends and interest less expenses).
Dividend Yield -- A measurement of a fund's dividend as a percentage of the
maximum offering price.
Expense Ratio -- The cost of doing business for a mutual fund, expressed as a
percent of the fund's net assets.
Investment Objective -- The shared investment goal of a fund and its
shareholders.
Management Fee -- The amount paid by a mutual fund to its investment advisor(s).
Multiple Classes of Shares -- Although an individual mutual fund invests in only
one portfolio of securities, it may offer investors several purchase options
which are "classes" of shares. Multiple classes permit shareholders to choose
the fee structure that best meets their needs and goals. Generally, each class
will differ in terms of how and when sales charges and certain fees are
assessed.
National Association of Securities Dealers, Inc. (NASD) -- A self-regulatory
body with authority over firms that distribute mutual funds.
Net Asset Value (NAV) Per Share -- The market worth of one fund share, obtained
by adding a mutual fund's total assets (securities, cash, and any accrued
earnings), subtracting liabilities, and dividing the resulting net assets by the
number of shares outstanding.
Offering Price (OP) -- The price at which a mutual fund's share can be
purchased. The offering price per share is the current net asset value plus any
sales charge.
Portfolio Turnover -- A measure of the trading activity in a mutual fund's
investment portfolio that reflects how often securities are bought and sold.
Prospectus -- The legal document describing a mutual fund to all prospective
shareholders. It contains information required by the Securities and Exchange
Commission (SEC), such as a fund's investment objective and policies, services,
investment restrictions, officers and directors, how shares are bought and
redeemed, fund fees and other charges, and the fund's financial statements.
SEC Yield -- SEC Yield refers to the net income earned by a fund during a recent
30-day period. This income is annualized and then divided by the maximum
offering price per share on the last day of the 30-day period. The SEC Yield
formula reflects semiannual compounding.
Securities and Exchange Commission -- The primary US federal agency that
regulates the registration and distribution of mutual fund shares.
Statement of Additional Information -- A document that contains updated or more
detailed information about a mutual fund and that supplements the prospectus. It
is available at no charge upon request.
Total Return -- A measure of a fund's performance encompassing all elements of
return. Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The Average Annual Total
Return represents the average annual compounded rate of return for the periods
presented.
Yield on Securities -- For bonds, the current yield is the coupon rate of
interest, divided by the purchase price. For stocks, the yield is measured by
dividing dividends paid by the market price of the stock.
- ----------
Adapted from the Investment Company Institute's 1997 Mutual Fund Fact Book.
86
<PAGE>
BENCHMARKS
Lipper Emerging Markets Funds Average:*
This average is comprised of mutual funds which seek long-term capital
appreciation by investing at least 65% of total assets in emerging market equity
securities, where "emerging market" is defined by a country's GNP per capita or
other economic measures. This average was comprised of 129 mutual funds at April
30, 1998.
Lipper International Funds Average:*
This average is comprised of mutual funds which invest their assets in equity
securities whose primary trading markets are outside the US. This average was
comprised of 424 mutual funds at April 30, 1998.
Lipper Global Funds Average:*
This average is comprised of mutual funds which invest at least 25% of their
portfolios in equity securities traded outside the US, and may own US securities
as well. This average was comprised of 191 mutual funds at April 30, 1998.
Lipper Science & Technology Funds Average:*
This average is comprised of mutual funds which invest 65% of their equity
portfolios in science and technology stocks. This average was comprised of 74
mutual funds at April 30, 1998.
Lipper Global Small Cap Funds Average:*
This average is comprised of mutual funds which invest at least 25% of their
portfolios in equity securities whose primary trading markets are outside the
US, and which limit at least 65% of their investments to companies with market
capitalizations less than US $1 billion at the time of purchase. This average
was comprised of 32 mutual funds at April 30, 1998.
Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index
(MSCIEAFE Index):
This is a market-capitalization-weighted equity index comprised of 20 countries
and representing the developed stock markets outside North America.
MSCI World Index:
This is a market-capitalization-weighted equity index comprised of 22 countries
and representing the world's developed stock markets.
MSCI Emerging Markets Free Index:
This is a market-capitalization-weighted equity index comprised of 26 countries
and representing the investment opportunities in the developing world available
to foreign investors.
Salomon Brothers World Extended Market Index:
This index represents the small-capitalization stock universe. It comprises the
bottom 20% of the available capital of each country included in the Salomon
Brothers World Broad Market Index (BMI), and includes 75% of the BMI issues. The
BMI universe covers 22 countries and includes listed shares of companies with a
total available market capitalization of at least the local equivalent of US
$100 million.
- ----------
* Lipper Analytical Services Inc. calculates the Averages monthly. These
monthly results are used to determine each Average's performance versus
the total returns for each fund.
Adapted from materials from Lipper Analytical Services Inc., Morgan Stanley
Capital International, and Salomon Brothers Incorporated.
87
<PAGE>
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Henderson Global Fund Series, Inc., which contains information
about the sales charges, management fees, and other costs. Please read the
prospectus carefully before investing or sending money.
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[LOGO OMITTED]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
EQF3 4/98 [RECYCLE LOGO] Printed on Recycled Paper
