[BACKGROUND GRAPHIC]
SELIGMAN
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SELIGMAN HENDERSON
GLOBAL FUND SERIES, INC.
INTERNATIONAL FUND
EMERGING MARKETS
GROWTH FUND
GLOBAL GROWTH
OPPORTUNITIES FUND
GLOBAL SMALLER
COMPANIES FUND
GLOBAL TECHNOLOGY FUND
[GRAPHIC OMITTED]
MID-YEAR REPORT
APRIL 30, 1999
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INVESTING
AROUND THE WORLD
FOR CAPITAL
APPRECIATION
[LOGO OMITTED]
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.
TIMES CHANGE...
Established in 1864, Seligman has a history of providing
financial services marked not by fanfare, but rather by a quiet
and firm adherence to financial prudence. While the world has
changed dramatically in the 135 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
[PHOTO] was convinced of the importance that investment companies could
have in building wealth for individual investors and began
managing its first mutual fund in 1930.
James, Jesse,
and Joseph
Seligman, 1870
In the decades that followed, Seligman has continued to offer forward-looking
investment solutions, including equity funds that specialize in small companies,
technology, or international securities, and bond funds that focus on high-yield
issuers, US government bonds, or municipal 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.
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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 .................................... 12
Performance and Portfolio Overview ................... 14
Portfolio of Investments ............................. 17
Seligman Henderson Global Growth Opportunities Fund:
Investment Report .................................... 21
Performance and Portfolio Overview ................... 23
Portfolio of Investments ............................. 26
Seligman Henderson Global Smaller Companies Fund:
Investment Report .................................... 30
Performance and Portfolio Overview ................... 32
Portfolio of Investments ............................. 35
Seligman Henderson Global Technology Fund:
Investment Report .................................... 45
Performance and Portfolio Overview ................... 47
Portfolio of Investments ............................. 50
Statements of Assets and Liabilities ................... 55
Statements of Operations ............................... 56
Statements of Changes in Net Assets .................... 57
Notes to Financial Statements .......................... 59
Financial Highlights ................................... 66
Report of Independent Auditors ......................... 74
Board of Directors and Executive Officers .............. 75
Glossary of Financial Terms ............................ 76
Benchmarks and For More Information .................... 77
<PAGE>
TO THE SHAREHOLDERS
During the six months ended April 30, 1999, stock markets around the world
recovered sharply from the depressed levels seen during the global financial
crisis, which began late last summer. These rebounds were largely the result of
significant monetary policy easings by the world's central banks, led by the US
Federal Reserve Board.
During this time, the US economy continued its ongoing expansion, despite the
threat of worldwide financial disorder, and US equities continued to hit new
highs. The UK market also performed well, far outpacing Continental European
markets, which were generally weak. Asian markets rebounded sharply from last
year's crisis with the boost provided by Japan, which was the best-performing
major market. Emerging markets also bounced back strongly. During the past
several years, the economic environment and investor demand favored growth
stocks. However, early in 1999 that trend slowed with emphasis shifting to value
stocks. The better overall economic environment has contributed to improving the
financial prospects for value stocks, particularly for those traditionally
classified as cyclical. Also, investors have begun to recognize the
significantly lower valuation levels of value stocks compared to those of growth
stocks. Since the global economic recovery remains somewhat fragile, however, it
is unclear whether the resurgence of value stocks will continue.
Over the near term, there is a possibility that equity markets will retreat
somewhat following the dramatic advances of the past six months. Overall,
however, the growing optimism for global economic expansion provides a favorable
long-term outlook for world equity markets, and we believe that global equity
markets will continue to offer many exciting growth opportunities for long-term
investors.
Your portfolio management team considers the potential ramifications of the Year
2000 (Y2K) computer issue when making decisions on which securities should be
held by the Fund. In addition, the Fund's manager, J. & W. Seligman & Co.
Incorporated, continues to work to ensure that all of its operations are
prepared for the challenges posed by Y2K, and we are confident that there will
be no disruption in the investment and shareholder services provided by the Fund
as a result of this issue.
Thank you for your continued support of Seligman Henderson Global Fund Series.
We look forward to serving your global investment needs for many years to come.
By order of the Board of Directors,
/s/ William Morris
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William C. Morris
Chairman
/s/ Brian T. Zino
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Brian T. Zino
President
June 4, 1999
1
<PAGE>
MARKET AND ECONOMIC OVERVIEW
OVERVIEW
During the six months ended April 30, 1999, the world's central banks, led by
the US Federal Reserve Board, lowered interest rates in an effort to spark
economic activity following 1998's worldwide financial crisis. Global stock
markets responded by recovering sharply from their depressed levels of last
fall. The increase in economic activity has produced some small upward revisions
in ~gross domestic product (GDP) growth forecasts for many countries and global
inflation appears to be manageable.
UNITED STATES
The US economy, whose ongoing expansion appeared threatened last fall by the
global financial crisis, continued to deliver surprisingly robust growth. A
series of three interest rates cuts by the Federal Reserve Board last fall
injected liquidity into the economy, which has contributed to driving US equity
markets to new highs.
UNITED KINGDOM
The UK stock market ended the period up 15.38% in US dollar terms, strongly
ahead of Continental European markets. The number and magnitude of interest rate
cuts over the past six months surprised UK investors and moved these markets
significantly higher. Investors are now anticipating further interest-rate
reductions, lower bond yields, a weaker currency, and accelerating growth for
the second half of calendar year 1999.
CONTINENTAL EUROPE
Continental European equity markets rallied for a brief period following the
successful introduction of the euro in January. Since then, however, a slowdown
in economic growth relative to the US has caused Continental Europe to
underperform other major markets. In April, the European Central Bank again cut
interest rates which, combined with a better global economic environment, should
begin to improve market prospects. Mergers and acquisitions continued across the
region, particularly among financial and telecommunications companies.
JAPAN
Japan was the best-performing major market over the period. The Nikkei Average
gained 26.47% and closed above 16,000 for the first time since April 1998. This
strong performance was driven by better economic news and corporate
restructurings, which have prompted foreign cash to flow back into this market.
PACIFIC REGION
Asian markets strengthened during the six-month period ended April 30, 1999,
primarily because of lower interest rates and a liquidity-driven rally. The
region had a poor start at the beginning of calendar year 1999, as renewed fears
over emerging markets, following the devaluation of the Brazilian real, placed a
drag on performance. However, Japan's improving outlook and a stronger yen have
improved the relative competitiveness of Southeast Asia and have given Asia hope
for regional recovery.
EMERGING MARKETS
Emerging markets rallied strongly from their lows of August and September 1998,
despite the Brazilian currency devaluation in January 1999, which proved less
traumatic for emerging markets than many had anticipated. Emerging markets have
also been helped by the worldwide economic recovery, the sharp rebound in Far
East markets, and rising commodity prices.
OUTLOOK
It appears that the numerous interest rate reductions in recent months are
beginning to stimulate global economic growth, which we believe will be
satisfactory for the remainder of the Fund's fiscal year. However, the overall
monetary environment may not be as supportive as it has been over the past six
months. The world has not fully recovered from the damaging events of 1998, and
weak areas remain. For example, in both Germany and Japan, economic growth
remains sluggish and these economies need to make further progress. At the same
time, we think inflation will remain subdued, despite the recent price increases
for oil and some other commodities.
We believe that there is now some potential for a short-term pullback in global
equity prices following their sharp increases during the past six months.
However, looking out over the balance of the Fund's fiscal year, we anticipate
further progress for global equities.
2
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
PERFORMANCE REVIEW
During the six months ended April 30, 1999, Seligman Henderson International
Fund posted a 12.90% total return based on the net asset value of Class A
shares, versus the 15.16% total return of its peer group, as measured by the
Lipper International Funds Average (Lipper Average), and 15.44% for the Morgan
Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index.
The Fund underperformed relative to the Lipper Average and to the MSCI EAFE
Index because of its underweightings in Japan, the Pacific Basin, and emerging
markets, all of which performed well during the period. The Fund's overweighting
in Continental Europe, which was weak relative to other world markets,
negatively impacted performance.
PORTFOLIO STRATEGY
UNITED KINGDOM
During the six-month period under review, the Fund's exposure to the UK was
increased to 29.80%, an overweighting relative to the MSCI EAFE Index. The UK
ended the period up 15.38%, strongly ahead of the rest of Europe. Investors have
been surprised by the number and size of interest rate cuts in the UK over the
past six months, and are now looking forward to further declines in interest
rates and bond yields, and to a weaker currency. Market participants expect in
general that economic growth will accelerate in the second half of 1999. In
addition, it has recently become clearer that the UK may choose to join European
Monetary Union (EMU), which would likely be positive for UK markets.
We believe that interest rates in the UK will continue to fall and that economic
growth will rebound over the second half of 1999. In addition, the UK equity
market is now among the cheapest in the West and economic recovery is likely to
boost profit growth, particularly for consumer and industrial cyclicals.
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[PHOTO]
INTERNATIONAL TEAM: (FROM LEFT) JAMES ROBINSON, BEN ELWES, IAIN C. CLARK
(PORTFOLIO MANAGER), DAVID THORNTON, PETER BASSETT, (SEATED) STACEY NAVIN,
KIRSTEEN MORRISON
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CONTINENTAL EUROPE
The introduction of the new single currency, the euro, led to a period of
"europhoria" at the beginning of January. However, this rally was short lived
and Continental European equity markets have since underperformed other major
markets in recent months, as the deterioration in economic growth relative to
the US has had a negative impact. Recently, the European Central Bank cut
interest rates. This looser monetary policy, combined with an improving global
economic environment, should brighten market prospects. Merger and acquisition
activity continued at a robust pace, particularly among financial and
telecommunications companies.
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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.
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3
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
We have maintained our overweighting in Continental Europe as stock valuations
there are attractive, and we expect the relative performance of these markets to
improve shortly. Low interest rates, low inflation, and greater opportunity for
structural improvements should improve the medium-term prospects for both
earnings and economic growth. In addition, better news on the global economy led
us to increase the Fund's exposure to cyclical stocks in Continental Europe.
JAPAN
Japan was the best-performing major market over the period, with the Nikkei
Average closing above 16,000 for the first time since April 1998. Better news on
the economy and corporate restructurings have prompted foreign inflows into the
market.
While we have increased our weighting in Japan to 12.91%, we remain
significantly underweighted relative to the MSCI EAFE Index's weighting of
23.08%. Although there is a positive long-term case for Japanese equities, the
market may weaken over the near term if the currency weakens and if economic
data provide mixed signals. We will likely view any pullback in this market as
an opportunity to increase the Fund's weighting.
PACIFIC BASIN
Asian markets strengthened during the six-month period ended April 30, 1999,
primarily because of lower interest rates and a liquidity-driven rally. The
region had a poor start at the beginning of 1999 when it was negatively impacted
by renewed fears over emerging markets in general following the devaluation of
the Brazilian real. However, the relative competitiveness of Southeast Asia has
improved because of the strengthening of the Japanese yen, and Japan's ongoing
recovery has improved the prospects for the entire region.
While government policy responses in the region have been slightly more
positive, overall the fundamentals remain weak. The Japanese economy is also a
major factor for a possible recovery in Asia, and evidence that the Japanese
economy may have bottomed is positive for Asia. The Fund was underweighted in
the region during the past six months and we plan to remain underweighted until
fundamentals show further signs of solid improvement.
EMERGING MARKETS
Emerging markets staged a strong recovery from their lows of last fall. While
our exposure to emerging markets was limited, our holdings in Greece contributed
positively to overall performance, as this market was up 44.2% on hopes that
Greece will join EMU in 2001.
OUTLOOK
The outlook for non-US equity markets continues to improve as better prospects
for global economic growth and subdued inflationary pressures should continue to
provide a positive backdrop. Within this context, we believe that the regions
that have the greatest potential for corporate earnings growth -- Continental
Europe, the UK, and select emerging markets -- will offer attractive return
potential. While we expect the economies of Japan and the Pacific to improve
over the next six months, we believe that the fundamentals underpinning these
markets must make further progress before we will significantly increase the
Fund's weightings in these regions.
NOTE: ALL FIGURES ARE IN US DOLLAR TERMS. ALL SPECIFIC MARKET PERFORMANCE
INFORMATION REPRESENTS THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) COUNTRY
INDEX FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1999, UNLESS OTHERWISE STATED.
4
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
COUNTRY ALLOCATION
April 30, 1999
MSCI
EAFE
FUND INDEX
-------- --------
CONTINENTAL EUROPE ..................... 58.62% 47.65%
Austria ....................... -- 0.32
Belgium ....................... -- 1.52
Denmark ....................... 0.98 0.77
Finland ....................... 0.64 1.71
France ........................ 13.40 9.19
Germany ....................... 9.38 9.71
Greece ........................ 1.62 --
Hungary ....................... 2.27 --
Ireland ....................... 1.56 0.48
Italy ......................... 5.96 4.65
Netherlands ................... 8.93 6.01
Norway ........................ -- 0.43
Portugal ...................... -- 0.52
Spain ......................... 4.21 2.94
Sweden ........................ 2.52 2.26
Switzerland ................... 7.15 7.14
JAPAN 12.91 23.08
PACIFIC 1.63 6.57
Australia ..................... 1.45 2.97
Hong Kong ..................... -- 2.51
New Zealand ................... -- 0.21
Singapore ..................... -- 0.88
South Korea ................... 0.18 --
UNITED KINGDOM ......................... 29.80 22.70
OTHER ASSETS LESS LIABILITIES .......... (2.96) --
------ ------
TOTAL 100.00% 100.00%
====== ======
LARGEST INDUSTRIES
APRIL 30, 1999
[THE FOLLOWING TABLE REPRESENTS A BAR GRAPH IN THE PRINTED PIECE.]
Percent of
Net Assets
----------
BANKING ................................ $15,511,318 17.2%
TELECOMMUNICATIONS ..................... $11,391,934 12.7%
RESOURCES .............................. $ 6,827,428 7.6%
INDUSTRIAL GOODS AND SERVICES .......... $ 6,379,423 7.1%
RETAILING .............................. $ 5,795,732 6.4%
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED PIECE.]
REGIONAL ALLOCATION
APRIL 30, 1999
Percent of
Net Assets
----------
CONTINENTAL EUROPE ......................................... 58.62%
UNITED KINGDOM ............................................. 29.80%
JAPAN ...................................................... 12.91%
PACIFIC .................................................... 1.63%
OTHER ASSETS LESS LIABILITIES .............................. -2.96%
LARGEST PORTFOLIO HOLDINGS
APRIL 30, 1999
SECURITY VALUE
- ------------ ----------
Granada Group (UK)............................. $2,186,577
Royal Bank of Scotland Group (UK).............. 2,101,661
Magyar Tavkozlesi "Matav"~(ADRs) (Hungary)..... 2,047,500
BP Amoco (UK).................................. 1,956,716
WPP Group (UK)................................. 1,783,963
Mannesmann (Germany)........................... 1,667,127
Lloyds TSB Group (UK).......................... 1,625,145
Railtrack Group (UK)........................... 1,587,391
Telecom Italia (Italy)......................... 1,569,857
ING Groep (Netherlands)........................ 1,451,438
5
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED APRIL 30, 1999
<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>
CLASS A**
With Sales Charge 7.51% (4.21)% 7.21% 10.54% n/a n/a
Without Sales Charge 12.90 0.55 8.27 11.30 n/a n/a
CLASS B**
With CDSC+ 7.46 (5.25) n/a n/a 6.65% n/a
Without CDSC 12.46 (0.26) n/a n/a 7.51 n/a
CLASS D**
With 1% CDSC 11.41 (1.31) n/a n/a n/a n/a
Without CDSC 12.41 (0.31) 7.33 n/a n/a 8.72%
LIPPER INTERNATIONAL FUNDS AVERAGE*** 15.16 3.14 8.76 11.17++ 9.60o 9.92oo
MSCI EAFE INDEX*** 15.44 9.81 9.02 11.84+++ 9.18o 9.72oo
NET ASSET VALUE
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1998
--------------- ------------------ ---------------
<S> <C> <C> <C>
CLASS A $20.04 $17.75 $19.93
CLASS B 19.04 16.93 19.09
CLASS D 19.03 16.93 19.09
CAPITAL GAIN INFORMATION
For the Six Months Ended April 30, 1999
REALIZED $1.424
UNREALIZED 4.1010oo
</TABLE>
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 charge ("CDSC"), 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% CDSC, charged on redemptions made within one
year of the date of purchase.
*** The Lipper International Funds Average and the Morgan Stanley Capital
International 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 CDSC is 5% for periods of one year or less, and 3% since inception.
++ From April 9, 1992.
+++ From March 31, 1992.
o From April 30, 1996.
oo From September 30, 1993.
ooo Represents the per share amount of net unrealized appreciation of portfolio
securities as of April 30, 1999.
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, and assumes that all distributions within the period are
invested in additional shares, since the commencement of investment operations
on April 7, 1992, through April 30, 1999, ~to a $10,000 hypothetical investment
made in the Lipper International Funds Average and the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index) for the same
period. It is important to keep in mind that indices and averages exclude the
effect of fees and/or sales charges.
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE.]
Class A With Class A Without MSCI EAFE Lipper International
Sales Load Sales Load Index Funds Average
------------ --------------- --------- --------------------
4/7/92 9524 10000 10000 10000
4/30/92 9635 10117 10050 10482
7/31/92 9444 9917 9963 10327
10/31/92 9437 9908 9843 9874
1/31/93 9662 10145 9995 10101
4/30/93 11270 11833 12266 11456
7/31/93 11445 12017 12771 11819
10/31/93 12718 13354 13571 12991
1/31/94 14012 14712 14411 14464
4/30/94 13646 14329 14345 13880
7/31/94 13971 14670 14613 14064
10/31/94 14353 15071 14980 14390
1/31/95 12724 13361 13809 12899
4/30/95 13530 14207 15189 13778
7/31/95 14438 15160 15676 14650
10/31/95 14175 14884 14970 14301
1/31/96 15146 15903 16084 15223
4/30/96 15916 16712 16973 16046
7/31/96 15173 15932 16277 15530
10/31/96 15370 16138 16588 15953
1/31/97 15845 16637 16442 16662
4/30/97 16278 17092 16873 16980
7/31/97 18605 19535 19281 19361
10/31/97 16881 17725 17403 17626
1/31/98 17331 18197 18183 18032
4/30/98 20187 21196 20115 20483
7/31/98 20785 21824 20387 20651
10/31/98 17979 18878 19133 18345
1/31/99 19721 20707 20859 20043
4/30/99 20299 21313 22086 21126
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 Class 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, 1999
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 4/30/99
- ------------- ------ ------
ABB (Switzerland) .......... 960 960
Akzo Nobel (Netherlands) ... 28,617 28,617
AstraZeneca (UK) ........... 32,035 32,035
Banco Santander Central
Hispano (Spain) .......... 55,620 55,620
Banque Nationale
de Paris "BNP" (France) .. 13,702 13,702
British Tele-
communications (UK) ...... 75,000 75,000
Great Universal
Stores (UK) .............. 75,000 75,000
Hoechst (Germany) .......... 22,812 22,812
Laporte (UK) ............... 85,000 85,000
Valeo (France) ............. 14,246 14,246
SHARES
--------------------
HOLDINGS
REDUCTIONS INCREASE 4/30/99
- ------------- ------ ------
Accor (France) ............. 5,029 --
Argentaria(1) (Spain) ...... 60,570 --
Centros Comerciales
Continente (Spain) ....... 38,203 --
Electricidade de
Portugal (Portugal) ...... 51,688 --
Istituto Nazionale delle
Assicurazioni (Italy) .... 566,314 --
Kingfisher (UK) ............ 87,400 --
L.M. Ericsson Telefon
(Series B) (Sweden) ...... 59,795 --
Nestle (Switzerland) ....... 733 --
Swisscom (Switzerland) ..... 3,054 --
Unilever (Netherlands) ..... 17,330 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ---------------
(1) Formerly, Corporacion Bancaria de Espana.
7
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson International Fund
SHARES VALUE
---------- -----------
COMMON STOCKS 102.96%
AUSTRALIA 1.45%
COLONIAL
Provider of financial services in
banking, retail insurance, and
investments (Financial Services) 168,000 $ 632,198
RIO TINTO
International mining company
(Metals) 4,000 67,325
TELSTRA
Provider of telecommunications
services (Telecommunications) 25,500 138,288
WESTPAC BANKING
Provider of banking services
(Banking) 60,700 463,100
----------
1,300,911
----------
DENMARK 0.98%
TELE DANMARK (SERIES B)*
Provider of telecommunications
services and equipment
(Telecommunications) 8,510 878,056
----------
FINLAND 0.64%
NOKIA
Developer and manufacturer
of cellular phones and base
stations (Telecommunications) 7,490 577,895
----------
FRANCE 13.40%
AXA
Provider of financial services and
insurance (Insurance) 10,894 1,407,993
BANQUE NATIONALE DE PARIS "BNP"
Provider of commercial,
investment, and private banking
services (Banking) 13,702 1,136,891
CASTORAMA DUBOIS INVESTISSEMENTS
Operator of do-it-yourself
retail stores (Retailing) 5,500 1,317,567
ELF AQUITAINE
Oil and gas exploration;
manufacturer of chemical
compounds (Resources) 9,005 1,400,048
LAFARGE
Producer and seller of
building materials
(Construction and Property) 8,920 867,950
STMICROELECTRONICS
Manufacturer of semiconductor
circuits for the automotive,
computer, and telecommunications
industries (Electronics) 8,486 884,956
SUEZ LYONNAISE DES EAUX
Financial group which supports
the communication, electric,
waste management, and
water industries (Construction
and Property) 7,272 $ 1,238,288
TOTAL (B SHARES)
Worldwide operator of gas
and oil (Resources) 10,135 1,389,219
VALEO
Manufacturer of automobile
components (Manufacturing) 14,246 1,205,382
VIVENDI
Water purification and
distribution; energy production
(Industrial Goods and Services) 5,216 1,219,743
-----------
12,068,037
-----------
GERMANY 9.38%
ADIDAS-SALOMON
Manufacturer and marketer of
sporting goods (Retailing) 8,695 858,012
BAYERISCHE HYPO-UND VEREINSBANK
Provider of universal banking
services (Banking) 17,331 1,145,633
DAIMLERCHRYSLER
Manufacturer of automobiles,
trucks, and related parts
(Automotive and Related) 13,060 1,278,385
DEUTSCHE BANK
Worldwide banking operation
(Banking) 11,750 679,157
DEUTSCHE BANK*
Worldwide banking operation
(Banking) 980 55,142
DEUTSCHE TELEKOM
Provider of telecommunications
services (Telecommunications) 17,240 686,506
HOECHST
Manufacturer of industrial
chemicals and pharmaceutical,
agricultural, and veterinary
products (Chemicals) 22,812 1,044,704
MANNESMANN
Manufacturer of plant and
machinery equipment; auto-
motive electronics (Industrial
Goods and Services) 12,722 1,667,127
SIEMENS
Worldwide manufacturer of
automotive electronics,
locomotives, electrical power
plants, and traffic control
systems (Manufacturing) 13,971 1,029,917
----------
8,444,583
----------
- ---------------
See footnotes on page 11.
8
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson International Fund
SHARES VALUE
---------- -----------
GREECE 1.62%
HELLENIC TELECOMMUNICATIONS
ORGANIZATION
Provider of telecommunications
services (Telecommunications) 24,500 $ 568,999
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and
financial services (Banking) 64,720 886,664
----------
1,455,663
----------
HUNGARY 2.27%
MAGYAR TAVKOZLESI "MATAV" (ADRS)
Provider of telecommunications
services (Telecommunications) 72,800 2,047,500
----------
IRELAND 1.56%
BANK OF IRELAND
Provider of banking services
(Banking) 70,000 1,399,901
----------
ITALY 5.96%
BANCA POPOLARE DI BRESCIA
Provider of commercial banking
and financial services (Banking) 35,506 1,222,348
ENI
Refiner and marketer of oil
and gas (Resources) 176,910 1,165,688
TELECOM ITALIA
Provider of telecommunications
services (Telecommunications) 147,397 1,569,857
TELECOM ITALIA (RNC)
Provider of telecommunications
services (Telecommunications) 68,000 366,074
UNICREDITO ITALIANO
Provider of banking services
(Banking) 206,070 1,046,160
----------
5,370,127
----------
JAPAN 12.91%
ASAHI CHEMICAL INDUSTRY
Producer of chemicals, plastics,
rubber, and food products
(Chemicals) 97,000 564,970
BANK OF TOKYO-MITSUBISHI
Provider of a broad range
of financial services
(Financial Services) 45,000 664,488
CANON
Manufacturer of printers and
photocopiers (Business Services) 23,000 562,833
HOSIDEN
Manufacturer of electronic
components (Electronics) 24,000 506,851
JAPAN TOBACCO
Tobacco producer (Tobacco) 58 583,281
KADOKAWA SHOTEN PUBLISHING
Magazine and book
publisher (Media) 3,700 564,341
KAO
Manufacturer of cosmetics
and personal care products
(Consumer Products) 21,000 533,250
KAWASAKI HEAVY INDUSTRIES
Producer of transport
equipment and heavy
machinery for military and
commercial use (Industrial
Goods and Services) 203,000 512,072
Mitsui Chemicals
Producer of petrochemical
products (Chemicals) 97,000 496,686
MITSUI MINING & SMELTING
Metal producer (Metals) 75,000 388,435
NAMCO
Manufacturer of game
equipment and software
(Entertainment and Leisure) 26,800 606,411
NIPPON TELEGRAPH & TELEPHONE "NTT"
Provider of telecommunications
services (Telecommunications) 70 762,623
NIPPON TELEVISION NETWORK
Television broadcaster (Media) 1,210 425,896
NISHIMATSU CONSTRUCTION
Contractor of dams,
tunnels, and other large-scale
construction projects
(Construction and Property) 94,000 546,709
NTT MOBILE COMMUNICATION NETWORK
"NTT DoCoMo"
Provider of telecommunications
services (Telecommunications) 12 703,960
SONY
Developer and manufacturer of
audio and video equipment
(Consumer Products) 5,000 467,211
TAKEDA CHEMICAL INDUSTRIES
Producer and retailer of
pharmaceutical products
(Drugs and Health Care) 15,000 652,420
TAKEFUJI
Provider of consumer financial
services (Financial Services) 7,400 613,953
TDK
Provider of magnetic tapes and
heads for disk drives (Electronics) 5,000 378,378
- ---------------
See footnotes on page 11.
9
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson International Fund
SHARES VALUE
---------- -----------
UNY
Supermarket operator
(Retailing) 30,000 $ 477,687
YAMAHA MOTOR
Manufacturer of motorcycles
and other recreational vehicles
(Automotive and Related) 76,000 612,076
-----------
11,624,531
-----------
NETHERLANDS 8.93%
AKZO NOBEL
Producer and marketer of
health care products and chemicals
(Health and Household) 28,617 1,293,904
BENCKISER (SERIES B)
Producer and supplier of
household cleaning products
(Consumer Products) 19,175 1,058,639
EQUANT*
Provider of data network services
to multinational corporations
(Business Services) 10,483 952,403
ING GROEP
Provider of banking and
insurance services (Insurance) 23,539 1,451,438
KONINKLIJKE AHOLD
Distributor and marketer of
food products (Retailing) 26,032 967,776
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) 16,305 1,405,466
ROYAL DUTCH PETROLEUM
Provider of international
oil services (Resources) 15,714 915,757
----------
8,045,383
----------
SOUTH KOREA 0.18%
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics (Electronics) 2,124 163,343
----------
SPAIN 4.21%
ACTIVIDADES DE CONSTRUCCION
y Servicios
Designer and builder of public
works projects, residential
homes, and other buildings
(Construction and Property) 29,766 894,719
BANCO SANTANDER CENTRAL HISPANO
Provider of banking
services (Banking) 55,620 1,209,473
ENDESA
Provider of electric energy
(Utilities) 31,033 690,576
TELEFONICA
Provider of telecommunications
services (Telecommunications) 20,846 977,819
TELEFONICA (RIGHTS)*
Provider of telecommunications
services (Telecommunications) 20,846 19,402
----------
3,791,989
----------
SWEDEN 2.52%
ELECTROLUX (SERIES B)
Manufacturer of appliances and
outdoor products (Consumer
Products) 52,876 1,072,345
NORDBANKEN HOLDING
Provider of banking, financial,
loan, and insurance services
(Banking) 190,337 1,196,407
----------
2,268,752
----------
SWITZERLAND 7.15%
ABB
Manufacturer of rail transit
systems and components for
generating and distributing
electricity (Industrial Goods
and Services) 960 1,401,253
NOVARTIS
Manufacturer of pharmaceuticals
(Health and Household) 841 1,231,970
ROCHE HOLDING
Developer and marketer of
pharmaceutical and chemical
products (Health and Household) 93 1,094,512
UBS
Provider of asset management
and banking services (Banking) 3,954 1,343,636
ZURICH ALLIED
Holding company active in
life insurance and asset
management (Insurance) 2,127 1,371,628
----------
6,442,999
----------
- -----------------
See footnotes on page 11.
10
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson International Fund
SHARES VALUE
---------- -----------
UNITED KINGDOM 29.80%
ALLIED ZURICH*
Holding company active in life
insurance and asset management
(Insurance) 82,500 $ 1,130,439
ASTRAZENECA
Holding company, which through
its subsidiaries, is a researcher and
manufacturer of chemicals and
medical products
(Drugs and Health Care) 32,035 1,249,972
BP AMOCO
Explorer, producer, refiner,
and retailer of petroleum
products (Resources) 103,283 1,956,716
BRITISH AMERICAN TOBACCO
Producer and marketer of
tobacco products (Tobacco) 102,500 858,846
BRITISH TELECOMMUNICATIONS
Provider of telecommunications
services (Telecommunications) 75,000 1,258,054
BRITISH VITA
Holding company for worldwide
companies which manufacture
fabrics for the furnishing,
transportation, clothing,
packaging, and engineering
industries (Chemicals) 170,000 697,176
BUNZL
Distributor and manufacturer
of paper and plastic products
(Manufacturing) 225,000 960,728
CABLE & WIRELESS
Provider of global
telecommunications services
(Telecommunications) 59,000 836,901
FKI
Electrical engineering company
(Industrial Goods and Services) 285,000 788,364
GRANADA GROUP
Television group with additional
leisure interests, including
hotels (Entertainment
and Leisure) 103,000 2,186,577
GREAT UNIVERSAL STORES
Provider of home shopping
services; clothing retailer
(Retailing) 75,000 854,584
LAPORTE
Producer and seller of
specialty chemicals (Chemicals) 85,000 1,006,805
LLOYDS TSB GROUP
Provider of banking and
financial services (Banking) 101,000 1,625,145
NEXT
Clothing and financial retailer
(Consumer Products) 60,000 741,082
RAILTRACK GROUP
Provider of rail services
(Transportation) 76,101 1,587,391
ROLLS-ROYCE
Provider of aerospace, power
generation, transmission, and
distribution systems (Industrial
Goods and Services) 170,600 790,864
ROYAL BANK OF SCOTLAND GROUP
Provider of banking services
(Banking) 90,000 2,101,661
SCOTTISH & NEWCASTLE
Brewery operator
(Consumer Products) 90,000 1,124,649
SMITHKLINE BEECHAM
Manufacturer and marketer of
pharmaceutical products;
provider of health care
products and services
(Health and Household) 64,000 846,068
TESCO
Supermarket chain (Retailing) 445,500 1,320,106
UNITED UTILITIES
Provider of water utility
services (Utilities) 100,000 1,132,208
WPP GROUP
Provider of worldwide marketing
services, including advertising,
public relations, and market
research (Media) 201,500 1,783,963
-----------
26,838,299
-----------
TOTAL INVESTMENTS 102.96%
(Cost $73,771,201) 92,717,969
OTHER ASSETS
LESS LIABILITIES (2.96)% (2,665,975)
-----------
NET ASSETS 100.00% $90,051,994
===========
- ---------------------
* Non-income producing security.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
11
<PAGE>
INVESTMENT REPORT
Seligman Henderson Emerging Markets Growth Fund
PERFORMANCE REVIEW
For the six months ended April 30, 1999, Seligman Henderson Emerging Markets
Growth Fund posted a total return of 27.22% based on the net asset value of
Class A shares. This was slightly better than the 26.90% return of the Fund's
peers, as measured by the Lipper Emerging Markets Funds Average, but behind the
34.87% return posted by the Morgan Stanley Capital International Emerging
Markets Free (MSCI EMF) Index.
The Fund's underperformance relative to the MSCI EMF Index was due to
underweightings in markets with high political risk, such as Malaysia,
Indonesia, and Russia. These markets delivered the strongest performances during
the period.
PORTFOLIO STRATEGY
PACIFIC REGION
During the period, the Fund remained overweighted in Thailand and the
Philippines. The Fund had no exposure to Malaysia because of the temporary
suspension of capital convertibility, and no exposure to Indonesia because of
the high political risk there. In general, the South Pacific benefited from
economic and market recoveries around the world. While all these markets were
strong performers, those markets with the highest political risk performed best.
The Malaysian market gained 113.0%, the Indonesian market gained 92.3%, the Thai
market gained 56.6%, and the Philippine market gained 43.0%.
INTERNATIONAL TEAM: MONICA BALL, PETER BASSETT (PORTFOLIO MANAGER), ELEANOR
DALE, CHRISTOPHER EDWARDS, DIVYA MATHUR, KIRSTEEN MORRISON, LOUISE O'SULLIVAN,
SHEILA SPARKS (ADMINISTRATIVE ASSISTANT)
In the North Pacific, the South Korean market performed exceptionally well,
gaining 120.4% during the period, due to a significant improvement in the
balance of payments and a drop in domestic interest rates. Chinese-related
markets did not perform as well, rising just 8.4%, due to uncertainty over the
course of mainland China's economy. The Taiwanese market, which performed
relatively well during the Asian crisis, had less ground to make up on the
regional recovery, and rose 15.1%. We increased the Fund's exposure to South
Korea during the period and we continued to focus the Fund's Taiwanese holdings
in broadly based closed-end funds.
LATIN AMERICA
Despite the devaluation of the Brazilian real, the Brazilian market gained
10.8%. We reduced the Fund's exposure to Brazil before the devaluation and
increased it after the devaluation. The Mexican market is still benefiting from
the positive effects of its currency's devaluation in 1995, and rose 40.6%. The
Fund remained overweighted in Mexico throughout the period. Other major Latin
American markets were affected by positive worldwide and regional developments.
The Argentinian market rose 25.9% and the Chilean market rose 29.6%.
EMERGING EUROPE
There were dramatically differing performances within emerging European markets.
The Russian market rebounded from its lows of the September crisis, rising
106.6%. However, political risk and economic uncertainty remained high, and we
accordingly had no investment there. The Greek market performed strongly in the
early months of the period due to expectations that the country would join
European Monetary Union (EMU) ahead of schedule. However, in early 1999, Greece
was affected by the weakness of the euro (launched January 1,
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.
12
<PAGE>
INVESTMENT REPORT
Seligman Henderson Emerging Markets Growth Fund
1999), the slow pace of economic growth within EMU, and the Kosovo crisis. The
Greek market gained 44.2% for the period. Other central European markets were
similarly affected by these factors. The Polish and Hungarian markets were up
16.2% and 5.6%, respectively, while the Czech market fell 11.6%. During the
period, we reduced the Fund's exposure to central Europe.
OTHER MARKETS
Market performances varied widely in the Middle East. During the period, we
added to the Fund's holdings in Turkey, whose market rose 85.3% as a result of
falling inflation and interest rates. Other markets also performed well, with
Israel rising 27.4%, Egypt rising 20.8%, India rising 17.3%, and South Africa
rising 9.6%.
OUTLOOK
The outlook for emerging markets is now brighter than for some time past. Recent
devaluations have left currencies competitively valued, there is evidence of an
incipient upturn in Organization for Economic Cooperation and Development (OECD)
economies, and the outlook for commodity prices has dramatically improved. In
addition, the world's economies are considerably more liquid than they were six
months ago, which should support foreign investment in emerging markets.
Asian markets are likely to continue to rebound, although any weakness in the
yen may restrict progress. Latin America should benefit from rising commodity
prices. European emerging markets will remain largely dependent on an economic
upturn for EMU. Overall, we are optimistic for future long-term progress for
emerging markets.
NOTE: ALL FIGURES ARE IN US DOLLAR TERMS. ALL SPECIFIC MARKET PERFORMANCE
INFORMATION REPRESENTS THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS
FREE (MSCI~EMF) COUNTRY INDEX FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1999,
UNLESS OTHERWISE STATED.
13
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED APRIL 30, 1999
AVERAGE ANNUAL
-------------------
SINCE
SIX ONE INCEPTION
*MONTHS* YEAR 5/28/96
----------- ------- ---------
CLASS A**
With Sales Charge 21.14% (21.08)% (4.33)%
Without Sales Charge 27.22 (17.11) (2.71)
CLASS B**
With CDSC+ 21.52 (21.96) (4.47)
Without CDSC 26.52 (17.86) (3.47)
CLASS D**
With 1% CDSC 25.72 (18.45) n/a
Without CDSC 26.72 (17.62) (3.42)
LIPPER EMERGING MARKETS
FUNDS AVERAGE*** 26.90 (16.25) (4.62)++
MSCI EMF INDEX*** 34.87 (10.19) (7.20)+++
NET ASSET VALUE
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1998
-------------- ------------------ --------------
CLASS A $6.59 $5.18 $7.95
CLASS B 6.44 5.09 7.84
CLASS D 6.45 5.09 7.83
CAPITAL GAIN INFORMATION
FOR THE SIX MONTHS ENDED APRIL 30, 1999
REALIZED $0.036
UNREALIZED 0.906o
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 charge ("CDSC"), 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% CDSC, 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 (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 CDSC is 5% for periods of one year or less, and 3% since inception.
++ From May 30, 1996.
+++ From May 31, 1996.
o Represents the per share amount of net unrealized appreciation of portfolio
securities as of April 30, 1999.
14
<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 3% contingent deferred sales
charge ("CDSC") for Class B shares, and without the 1% CDSC for Class D shares,
and assumes that all distributions within the period are invested in additional
shares, since the commencement of operations on May 28, 1996, through April 30,
1999, 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
indices and averages exclude the effect of fees and/or sales charges.
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE.]
- -----------------------------------------------
EMERGING MARKETS GROWTH FUND
Class A With Sales Charge
Class A Without Sales Charge
Class B With CDSC
Class D Without CDSC
LIPPER EMERGING MARKETS FUNDS AVERAGE
MSCI EMF INDEX
- -----------------------------------------------
5/28/96 9520 10000 10000 10000 10000 10000
7/31/96 9013 9468 9454 9454 9375 9462
10/31/96 9040 9496 9468 9468 9440 9540
1/31/97 10173 10686 10630 10644 10299 10735
4/30/97 10653 11190 11106 11106 10476 10974
7/31/97 12453 13081 12969 12969 11522 12406
10/31/97 9787 10280 10182 10182 8639 9973
1/31/98 9173 9636 9524 9524 7856 9114
4/30/98 10600 11135 10980 10966 8953 10401
7/31/98 9000 9455 9300 9300 7135 8547
10/31/98 6907 7255 7129 7129 5962 6865
1/31/99 7080 7437 7283 7297 6261 7064
4/30/99 8787 9230 8749 9034 8041 8711
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, 1999
SHARES
---------------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/99
- ------------- ------------ -----------
Aracruz Celulose
(ADRs) (Brazil) ................. 50,900 50,900
Citic Pacific (China) ............. 234,000 234,000
Companhia Paranaense de
Energia "Copel"
(ADRs)(Brazil) .................. 97,200 97,200
Grupo Iusacell
(ADRs)(Mexico) .................. 67,300 100,000
Panafon Hellenic
Telecom (GDRs) (Greece) ......... 22,400 22,400
Pohang Iron and Steel
(ADRs)(South Korea) ............. 46,500 46,500
Samsung Electronics
(South Korea) ................... 11,919 14,110
SK Telecom Group (ADRs)
(South Korea) ................... 60,600 78,000
Taiwan Semiconductor Manu-
facturing (ADRs)(Taiwan) ........ 31,000 31,000
Tele Sudeste Celular
Participacoes (Brazil) .......... 167,000,000 167,000,000
SHARES
---------------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/99
- ------------- ------------ -----------
Banco Rio de la Plata
(ADRs) Argentina) ............... 110,000 --
Ceske Radiokomunikace
(GDRs) (Czech Republic) ......... 30,000 --
Jeronimo Martins (Portugal) ....... 31,232 --
Magyar Tavkozlesi "Matav"
(ADRs) (Hungary) ................ 45,600 9,400
National Bank of Greece
(GDRs)(Greece) .................. 69,920(1) 34,000
Panamerican Beverages
(Class A) (Mexico) .............. 50,100 --
Suez Cement (GDRs)
(Egypt) ......................... 58,000 --
Telecel-Comunicacaoes
Pessoais (Portugal) ............. 9,050 --
Thai Farmers Bank
(Thailand) ...................... 505,000 255,000
YPF Sociedad Anonima
(ADRs) (Argentina) .............. 37,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- -----------
(1) Includes 68,400 shares received as a result of a 3-for-1 stock split.
15
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
COUNTRY ALLOCATION
APRIL 30, 1999
MSCI
EMF
FUND INDEX
------- -------
EUROPE, MIDDLE EAST,
AND AFRICA ..................... 26.29% 27.88%
Croatia ..................... 0.87 --
Czech Republic .............. 0.96 0.69
Estonia ..................... 0.98 --
Greece ...................... 5.28 6.79
Hungary ..................... 1.59 1.15
Israel ...................... 1.77 3.15
Jordan ...................... -- 0.16
Poland ...................... 2.49 1.26
Russia ...................... -- 1.89
South Africa ................ 8.18 10.11
Turkey ...................... 4.17 2.68
LATIN AMERICA .................. 32.27 35.01
Argentina ................... 4.04 4.93
Brazil ...................... 11.34 9.97
Chile ....................... 0.72 4.43
Colombia .................... -- 0.65
Mexico ...................... 15.96 13.20
Peru ........................ 0.21 0.91
Venezuela ................... -- 0.92
PACIFIC ........................ 34.69 37.11
China ....................... 4.92 0.62
India ....................... 4.11 6.91
Indonesia ................... -- 1.68
Pakistan .................... -- 0.39
Philippines ................. 3.95 2.16
South Korea ................. 10.16 12.50
Sri Lanka ................... -- 0.06
Taiwan ...................... 5.68 9.62
Thailand .................... 5.87 3.17
OTHER ASSETS LESS LIABILITIES .. 6.75 --
------ ------
TOTAL .......................... 100.00% 100.00%
====== ======
[THE FOLLOWING TABLE REPRESENTS A BAR GRAPH IN THE PRINTED PIECE.]
LARGEST INDUSTRIES
APRIL 30, 1999
Percent of
Net Assets
----------
TELECOMMUNICATIONS ..................... $12,860,301 22.2%
FINANCIAL SERVICES ..................... $ 8,396,401 14.5%
CONSUMER GOODS AND SERVICES ............ $ 4,586,011 7.9%
RESOURCES .............................. $ 4,452,680 7.7%
DIVERSIFIED ............................ $ 3,735,641 6.5%
[
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED PIECE.]
REGIONAL ALLOCATION
APRIL 30, 1999
Pacific 34.69%
Latin America 32.27%
Europe, Middle East, and Africa 26.29%
Other Assets Less Liabilities 6.75%
LARGEST PORTFOLIO HOLDINGS
APRIL 30, 1999
SECURITY VALUE
- -------- -------
Telefonos de Mexico "Telmex"
(Class L ADRs) (Mexico) $1,439,250
Telesp Participacoes (Brazil).................. 1,350,000
Grupo Televisa (GDRs) (Mexico)................. 1,283,300
Fomento Economico Mexicano
"Femsa" (ADRs) (Mexico) 1,273,125
ITC (GDRs) (India)............................. 1,238,600
Perez Companc (ADRs) (Argentina)............... 1,217,082
Pohang Iron and Steel (ADRs)
(South Korea)............................... 1,197,375
Grupo Iusacell (ADRs) (Mexico)................. 1,125,000
Telefonica de Argentina (ADRs)
(Argentina) 1,121,250
Samsung Electronics (South Korea).............. 1,085,111
16
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
----------- ---------------
COMMON STOCKS 92.88%
ARGENTINA 4.04%
PEREZ COMPANC (ADRS)
Worldwide producer of oil
and gas (Resources) 97,800 $ 1,217,082
TELEFONICA DE ARGENTINA (ADRS)
Provider of telecommunications
services (Telecommunications) 30,000 1,121,250
------------
2,338,332
------------
BRAZIL 11.34%
ARACRUZ CELULOSE (ADRS)
Worldwide paper
manufacturer
(Paper and Printing) 50,900 1,018,000
COMPANHIA CERVEJARIA
BRAHMA (ADRS)
Producer and distributor of beer
and soft drinks (Consumer
Goods and Services) 75,000 731,250
COMPANHIA PARANAENSE DE
ENERGIA "COPEL" (ADRS)
Provider of electric utility
services (Electric Utilities) 97,200 795,825
PETROLEO BRASILEIRO "PETROBRAS"
Oil and gas producer and
distributor (Resources) 67,000 1,082,358
TELE SUDESTE CELULAR PARTICIPACOES
Provider of telecommunica-
tions services
(Telecommunications) 167,000,000 945,663
TELESP CELULAR PARTICIPACOES
(ADRS)
Provider of telecommunica-
tions services
(Telecommunications) 26,000 650,000
TELESP PARTICIPACOES
Provider of telecommunica-
tions services
(Telecommunications) 54,000,000 1,350,000
------------
6,573,096
------------
CHILE 0.72%
SOCIEDAD QUIMICA Y MINERA
DE CHILE (ADRS)
International manufacturer
of fertilizer and industrial
chemicals (Manufacturing) 11,350 418,531
------------
CHINA 4.92%
CHEUNG KONG INFRASTRUCTURE HOLDINGS
Real estate investment and
development (Construction
and Property) 240,000 501,626
CHINA RESOURCES ENTERPRISE
Investment holding company
with interests in real estate,
cold storage services, and
other products (Diversified) 450,000 757,664
CHINA TELECOM (HONG KONG)*
Provider of telecommunications
services (Telecommunications) 420,000 959,127
CITIC PACIFIC
Holding company with
interests in infrastructure,
power generation, environment,
aviation, telecommunications,
credit card services, and
property investment
(Diversified) 234,000 633,999
------------
2,852,416
------------
CROATIA 0.87%
PLIVA (GDRS)
Manufacturer and retailer of
pharmaceutical products
(Drugs and Health Care) 32,000 506,400
------------
CZECH REPUBLIC 0.96%
SPT TELECOM (GDRS)*
Provider of telecommunications
services (Telecommunications) 38,000 554,800
------------
ESTONIA 0.98%
ESTONIAN TELECOM (GDRS)*+
Provider of telecommunications
services (Telecommunications) 12,000 253,500
SOCIETIE GENERAL BALTIC
REPUBLICS FUND*
Investor in the Baltic
Republics (Miscellaneous) 3,200 313,600
------------
567,100
------------
GREECE 5.28%
ALPHA CREDIT BANK
Provider of banking services
(Financial Services) 9,350 668,150
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and financial
services (Financial Services) 34,000 465,800
PANAFON HELLENIC TELECOM (GDRS)*+
Provider of telecommunications
services (Telecommunications) 10,785 287,690
PANAFON HELLENIC TELECOM (GDRS)*
Provider of telecommunications
services (Telecommunications) 22,400 596,400
SARANTIS*
Manufacturer and distributor
of cosmetics
(Drugs and Health Care) 63,000 1,042,616
------------
3,060,656
------------
- ----------
See footnotes on page 20.
17
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
----------- ---------------
HUNGARY 1.59%
MAGYAR TAVKOZLESI "MATAV" (ADRS)
Provider of telecommunications
services (Telecommunications) 9,400 $ 264,375
MOL MAGYAR OLAJ-ES GAZIPARI (GDRS)+
Oil and gas producer and
distributor (Resources) 12,800 283,840
OTP BANK (GDRS)
Provider of commercial banking
services (Financial Services) 8,700 370,620
------------
918,835
------------
INDIA 4.11%
ITC (GDRS)
Holding company with interests
in tobacco, hotels, financial
services, paper, packaging and
printing, real estate, and
international export (Diversified) 44,000 1,238,600
MAHANGAR TELEPHONE NIGAM (GDRS)
Provider of telecommunications
services (Telecommunications) 55,000 573,375
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
telecommunications services
(Telecommunications) 51,000 568,650
------------
2,380,625
------------
ISRAEL 1.77%
DELTA-GALIL INDUSTRIES (ADRS)*
Clothing manufacturer
(Manufacturing) 50,000 515,625
KOOR INDUSTRIES
Investment company whose
subsidiaries manufacture
building materials and
telecommunications
equipment (Diversified) 4,700 508,903
------------
1,024,528
------------
MEXICO 15.96%
COCA-COLA FEMSA (ADRS)
Producer and marketer of
soft drinks (Consumer
Goods and Services) 32,000 662,000
DESC (ADRS)
Diversified product
manufacturer; real estate
developer; financial
services provider (Diversfied) 24,100 596,475
FOMENTO ECONOMICO MEXICANO
"FEMSA" (ADRS)
Beverage and packaging
producer; retail store operator
(Consumer Goods and Services) 35,000 1,273,125
GRUPO FINANCIERO BANAMEX ACCIVAL
"BANACCI" (SERIES B)*
Provider of banking services
(Financial Services) 256,000 650,356
GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) 100,000 1,125,000
GRUPO TELEVISA (GDRS)*
Provider of television and
other media services
(Media) 31,300 1,283,300
KIMBERLY-CLARK DE MEXICO (ADRS)
Manufacturer and retailer of
consumer and industrial paper
products (Retailing) 34,000 661,436
ORGANIZACION SORIANA (SERIES B)
Owner and operator of food,
clothing, furniture, and home
appliance retailers (Retailing) 120,300 539,858
PEPSI-GEMEX (GDRS)
Vendor of Pepsi soft
drink products (Consumer
Goods and Services) 97,000 1,018,500
TELEFONOS DE MEXICO "TELMEX"
(CLASS L ADRS)
Provider of telecommunications
services (Telecommunications) 19,000 1,439,250
------------
9,249,300
------------
PERU 0.21%
TELEFONICA DEL PERU (ADRS)
Provider of telecommunications
services (Telecommunications) 8,000 120,500
------------
PHILIPPINES 3.95%
MANILA ELECTRIC (CLASS B)
Distributor of electricity
for heat and power
(Electric Utilities) 160,000 610,125
PHILIPPINE LONG DISTANCE TELEPHONE
Provider of telecommunications
services (Telecommunications) 10,000 323,471
PHILIPPINE LONG DISTANCE
TELEPHONE (ADRS)
Provider of telecommunications
services (Telecommunications) 20,000 645,000
SM PRIME HOLDINGS
Developer and operator
of retail properties
(Construction and Property) 3,150,000 712,426
------------
2,291,022
------------
- ----------
See footnotes on page 20.
18
<PAGE>
PORTFOLIO OF INVESTMENTS
April 30, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
----------- ---------------
POLAND 2.49%
ELEKTRIM SPOLKA AKCYJNA
Exporter/importer active in the
power equipment, electrical
machinery, telecommunications,
cable, and lighting technology
industries (Manufacturing) 60,000 $ 713,021
PROKOM SOFTWARE (GDRS)
Provider of information
technology solutions (Computer
and Technology Related) 19,100 306,555
SOFTBANK (GDRS)
PCwholesaler (Computer and
Technology Related) 13,800 424,280
------------
1,443,856
------------
SOUTH AFRICA 8.18%
ABSA GROUP
Provider of banking services
(Financial Services) 92,000 484,609
ANGLO-AMERICAN CORPORATION OF
SOUTH AFRICA
International provider of
financial services to the
mining industry (Resources) 19,200 993,659
BARLOW
Producer and distributor of
products used in building and
construction and other
industries (Construction
and Property) 95,000 570,782
JD GROUP
Retailer of furniture, appliances,
and home entertainment
products (Retailing) 23,500 151,444
LIBERTY LIFE ASSOCIATION OF AFRICA
Provider of life and health
insurance (Financial Services) 37,500 541,358
NEDCOR
International provider of
personal and corporate
financial services
(Financial Services) 24,000 525,432
PEPKOR
Holding company for operators
of clothing and department
stores, supermarkets, and
jewelry retailers (Retailing) 100,000 444,444
SANLAM*
Provider of financial services
(Financial Services) 606,000 595,526
THETA GROUP*
Provider of banking services
(Financial Services) 125,000 432,099
------------
4,739,353
------------
SOUTH KOREA 10.16%
CHEIL JEDANG
Supplier of diversified consumer
products (Consumer Goods
and Services) 17,000 901,136
KOREA ELECTRIC POWER
Electric power generator and
supplier (Electric Utilities) 37,000 1,064,703
POHANG IRON AND STEEL (ADRS)
Steel manufacturer for the
construction and shipbuilding
industries (Metals) 46,500 1,197,375
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics (Manufacturing) 14,110 1,085,111
SHINHAN BANK (GDRS)*
Provider of banking services
(Financial Services) 22,800 555,750
SK TELECOM GROUP (ADRS)
Provider of mobile
telecommunications and paging
services (Telecommunications) 78,000 1,082,250
------------
5,886,325
------------
TAIWAN 5.68%
CHINA STEEL (GDRS)*
Producer of steel and steel
products (Metals) 54,000 823,500
THE ROC TAIWAN FUND
Closed-end fund investing
in Taiwan (Miscellaneous) 123,900 859,556
TAIWAN OPPORTUNITIES FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) 74,000 865,800
TAIWAN SEMICONDUCTOR
MANUFACTURING (ADRS)*
Manufacturer of integrated
circuits (Computer and
Technology Related) 31,000 744,000
------------
3,292,856
------------
THAILAND 5.50%
BANGKOK BANK*
Provider of retail, commercial,
and corporate banking services
(Financial Services) 230,000 688,140
PTT EXPLORATION AND PRODUCTION*
Producer of natural gas
(Resources) 95,000 875,741
SIAM CEMENT*
Cement manufacturer and
distributor (Construction
and Property) 31,000 915,795
THAI FARMERS BANK*
Provider of banking services
(Financial Services) 255,000 707,952
------------
3,187,628
------------
- ----------
See footnotes on page 20.
19
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
----------- ---------------
TURKEY 4.17%
HACI OMER SABANCI HOLDING++
Investment company
specializing in diversified
industries (Financial
Services) 21,900,000 $ 600,375
MIGROS TURK
Retailer of food and consumer
products (Retailing) 668,750 920,932
TURKIYE IS BANKASI "ISBANK" (GDRS)*
Provider of banking services
(Financial Services) 182,500 897,188
------------
2,418,495
------------
TOTAL COMMON STOCKS
(Cost $45,757,373) 53,824,654
------------
PREFERRED STOCKS 0.37%
(Cost $214,166)
THAILAND 0.37%
SIAM COMMERCIAL BANK 5.25%
Provider of banking services
(Financial Services) 304,000** 213,046
------------
TOTAL INVESTMENTS 93.25%
(Cost $45,971,539) 54,037,700
OTHER ASSETS
LESS LIABILITIES 6.75% 3,912,562
------------
NET ASSETS 100.00% $ 57,950,262
============
- ------------
*Non-income producing security.
**Warrants attached.
+Rule 144A security.
++Affiliated issuer (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.
20
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Growth Opportunities Fund
PERFORMANCE REVIEW
For the six months ended April 30, 1999, Seligman Henderson Global Growth
Opportunities Fund posted a total return of 21.41% based on the net asset value
of Class A shares. This performance was ahead of both the Lipper Global Funds
Average, which returned 19.01%, and the Morgan Stanley Capital International
(MSCI) World Index, which returned 19.78%.
Toward the end of the period, the markets began to focus on the stocks of
economically sensitive businesses, also known as value stocks. A more optimistic
outlook for worldwide economic activity implied a better environment for this
group and, after a large gain by growth stocks over the previous year, value
stocks began to regain some relative performance.
PORTFOLIO STRATEGY
The Fund remained diversified across three major themes: Quality of Life
(32.7%), Productivity (31.2%), and Consumption (24.6%). During the past six
months, the biggest changes in the portfolio included reducing the Fund's
exposure to the healthcare sector within the Quality of Life theme, and
increasing exposure to the Telecommunications sector, which is part of the
Productivity theme.
QUALITY OF LIFE
During the six-month period, we significantly reduced the Fund's investment in
the healthcare sub-theme. While pharmaceutical stocks continue to have exciting
growth prospects, underpinned by patents and proprietary research, we concluded
that the optimism for the future was fully reflected in the stock prices for
many of the Fund's holdings.
PRODUCTIVITY
This theme provided much of the Fund's activity and we continued to add
substantially to the telecommunications sector. The increase in voice and data
traffic over growing numbers of networks shows no sign of abating. In fact,
provisions for ever-greater bandwidth promise to increase. Telecommunications
has now overtaken both Technology
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.
[PHOTO]
INTERNATIONAL TEAM: (STANDING, FROM LEFT) BEN ELWES, DAVID THORNTON, MICHAEL
WOOD-MARTIN, PETER BASSETT, (SEATED) STACEY NAVIN, NITIN MEHTA (PORTFOLIO
MANAGER), KIRSTEEN MORRISON
[PHOTO]
US TEAM: (FROM LEFT) DAVE LEVY, SHELIA GRAYSON (ADMINISTRATIVE ASSISTANT),
(SEATED) MARION S. SCHULTHEIS (PORTFOLIO MANAGER); (NOT PICTURED) CRAIG CHODASH
21
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Growth Opportunities Fund
and Consumer Staples as the Fund's largest thematic position.
Within the Technology sub-theme, we added new investments in Asia. Following the
sharp economic contraction in most of this region, we believe that
technology-related stocks in Asia offer exceptional opportunities for growth.
CONSUMPTION
Rising consumer confidence in Continental Europe in response to rising
employment and record low interest rates led us to increase the Fund's exposure
to consumer-related stocks in this region. We believe that the fundamentals of
the Japanese economy are improving and we have invested in several growth
opportunities there, despite the extended slump in consumption.
OUTLOOK
For much of calendar year 1998, the uncertain economic environment favored
growth stocks. However, that trend has slowed since mid-April and there has been
a recent shift toward economically sensitive stocks, prompted by an improving
global economic outlook. However, we believe that it is unlikely that this is
the start of a secular trend in favor of value stocks at the expense of growth
stocks. Value stocks, which tend to be more dependent upon strong economic
growth, still face significant headwinds. First, while worldwide economic
activity is rising, it is still at sub-par levels. Second, there is a global
glut of manufacturing capacity, which should limit the ability of economically
sensitive businesses to raise prices. Third, the application of new technology
is proving to have disinflationary effects. Such an environment usually favors
growth stocks.
Overall, the growing optimism for global economic expansion provides a favorable
long-term outlook for world equity markets. We are all witnesses to changes of
dramatic proportions: the rapid advances in technology, the widespread adoption
of free-market economics, and the ongoing integration of the global community.
We believe that these developments will continue to offer many exciting growth
opportunities throughout the world for long-term investors.
22
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
COUNTRY ALLOCATION
APRIL 30, 1999
MSCI
WORLD
FUND INDEX
------- -------
CONTINENTAL EUROPE .................. 36.62% 22.26%
Austria ......................... -- 0.15
Belgium ......................... -- 0.71
Denmark ......................... -- 0.36
Finland ......................... 3.18 0.80
France .......................... 7.25 4.29
Germany ......................... 4.54 4.54
Greece .......................... 0.79 --
Hungary ......................... 0.29 --
Ireland ......................... 1.20 0.22
Italy ........................... 4.04 2.17
Netherlands ..................... 4.18 2.81
Norway .......................... 1.96 0.20
Portugal ........................ -- 0.24
Spain ........................... 5.60 1.37
Sweden .......................... 2.40 1.06
Switzerland ..................... 1.19 3.34
JAPAN ............................... 7.17 10.78
LATIN AMERICA ....................... 1.14 --
Mexico .......................... 1.11 --
Peru ............................ 0.03 --
PACIFIC ............................. 2.67 3.07
Australia ....................... 1.20 1.39
China ........................... 0.34 --
HongKong ........................ 0.56 1.17
New Zealand ..................... -- 0.10
Singapore ....................... 0.57 0.41
UNITED KINGDOM ...................... 12.20 10.60
UNITED STATES ....................... 35.19 51.30
OTHER ............................... -- 1.99
Canada .......................... -- 1.99
OTHER ASSETS LESS LIABILITIES ....... 5.01 --
------- -------
TOTAL ............................... 100.00% 100.00%
======= =======
[THE FOLLOWING TABLE REPRESENTS A BAR GRAPH IN THE PRINTED PIECE.]
Largest Industries
APRIL 30, 1999
Percent of
Net Assets
----------
TELECOMMUNICATIONS ..................... $27,133,047 12.8%
FINANCIAL SERVICES ..................... $18,931,867 8.9%
CONSUMER GOODS AND SERVICES ............ $17,963,874 8.5%
DRUGS AND HEALTH CARE .................. $17,500,848 8.3%
BUSINESS GOODS AND SERVICES ............ $15,926,607 7.5%
Regional Allocation
APRIL 30, 1999
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED PIECE.]
Continental Europe 36.62%
United States 35.19%
United Kingdom 12.20%
Japan 7.17%
Pacific 2.67%
Latin America 1.14%
Other Assets Less Liabilities 5.01%
LARGEST PORTFOLIO HOLDINGS
APRIL 30, 1999
SECURITY VALUE
- -------- -------------
Microsoft (US) ...................... $5,380,819
AES(US) ............................. 5,155,000
Nokia (Finland) ..................... 4,546,777
AT&T (US) ........................... 4,476,825
Tyco International (US) ............. 4,460,625
Halliburton (US) .................... 4,172,988
Tomra Systems (Norway) .............. 4,152,584
General Electric (US) ............... 3,871,850
CBS(US) ............................. 3,736,125
Equant (Netherlands) ................ 3,688,597
23
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED APRIL 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------
CLASS B
SINCE SINCE
SIX ONE INCEPTION INCEPTION
MONTHS* YEAR 4/22/96 11/1/95
---------- ------- ------------ ------------
<S> <C> <C> <C> <C>
CLASS A**
With Sales Charge 15.64% 3.38% n/a 15.02%
Without Sales Charge 21.41 8.54 n/a 16.65
CLASS B**
With CDSC+ 15.96 2.86 13.14% n/a
Without CDSC 20.96 7.86 13.91 n/a
CLASS D**
With 1% CDSC 19.96 6.86 n/a n/a
Without CDSC 20.96 7.86 n/a 15.78
LIPPER GLOBAL FUNDS AVERAGE*** 19.01 7.52 14.62++ 16.51o
MSCI WORLD INDEX*** 19.78 16.37 18.65++ 20.09o
NET ASSET VALUE
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1998
-------------- ----------------- --------------
<S> <C> <C> <C>
CLASS A $11.68 $9.62 $10.81
CLASS B 11.37 9.40 10.59
CLASS D 11.37 9.40 10.59
</TABLE>
CAPITAL GAIN INFORMATION
FOR THE SIX MONTHS ENDED APRIL 30, 1999
REALIZED $1.177
UNREALIZED 3.505oo
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 charge ("CDSC"), 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% CDSC, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Global Funds Average and the Morgan Stanley Capital
International (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 CDSC is 5% for periods of one year or less, and 3% since inception.
++ From April 30, 1996.
o From October 31, 1995.
oo Represents the per share amount of net unrealized appreciation of portfolio
securities as of April 30, 1999.
24
<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 charge ("CDSC") for Class D shares, and assumes that all distributions
within the period are invested in additional shares, since the commencement of
investment operations on November 1, 1995, through April 30, 1999, 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 indices and averages exclude the effect of
fees and/or sales charges.
[THE FOLLOWING TABLE REPRESENTS A LINE GRAPH IN THE PRINTED PIECE.]
<TABLE>
<CAPTION>
Class A Class A Class D MSCI World Lipper Global
With Sales Load Without Sales Load Without CDSL Index Fds. Avg.
--------------- ------------------ ------------ ---------- --------------
<S> <C> <C> <C> <C> <C>
11/1/95 9520 10000 10000 10000 10000
1/31/96 10107 10616 10602 10848 10658
4/30/96 10880 11429 11387 11362 11335
7/31/96 10627 11162 11106 11032 10961
10/31/96 10773 11317 11233 11682 11595
1/31/97 11307 11877 11751 12292 12454
4/30/97 11347 11919 11793 12592 12459
7/31/97 13253 13922 13740 14690 14464
10/31/97 12267 12885 12689 13698 13608
1/31/98 12748 13391 13152 14511 13938
4/30/98 15028 15786 15475 16312 15876
7/31/98 15069 15829 15503 16470 15655
10/31/98 13435 14112 13800 15847 14344
1/31/99 15599 16386 15988 18002 16149
4/30/99 16312 17134 16692 18980 17070
</TABLE>
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 24, 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, 1999
SHARES
--------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/99
- --------- ------------ ------------
AES (US) .................... 75,200 103,100
Alcatel (France) ............ 20,125 20,125
AlliedSignal (US) ........... 60,300 60,300
Banca Nazionale del
Lavoro "BNL" (Italy) ........ 836,500 836,500
Carrefour Supermarche
(France) .................... 3,060 3,060
CBS (US) .................... 82,000 82,000
Credit Suisse Group
(Switzerland) ............... 12,725 12,725
Halliburton (US) ............ 97,900 97,900
Medtronic (US) .............. 33,900 33,900
Newell Rubbermaid (US) ...... 69,800 69,800
SHARES
--------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/99
- ---------- ------------ ------------
Cap Gemini (France) ......... 17,155 15,156
Cardinal Health (US) ........ 48,750(1) --
Centros Comerciales
Continente (Spain) .......... 114,000 --
CNP Assurances (France) ..... 98,000 --
ConAgra (US) ................ 103,700 --
Interpublic Group of
Companies (US) .............. 55,350 --
Lily (Eli) (US) ............. 38,900 --
MBNA (US) ................... 102,488 --
Nokia (Finland) ............. 29,475 58,930(2)
PolyGram (Netherlands) ...... 36,840 --
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 16,250 shares received as a result of a 2-for-1 stock split.
(2) Includes 29,465 shares received as a result of a 2-for-1 stock split.
25
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
----------- ---------------
COMMON STOCKS 94.92%
AUSTRALIA 1.20%
BRAMBLES INDUSTRIES
Operator of diversified
transportation and commercial
services (Business Goods and
Services) 32,700 $ 960,309
CSL
Manufacturer and marketer of
human and veterinary
pharmaceutical products
(Drugs and Health Care) 100,700 799,175
TELSTRA
Provider of telecommunications
services (Telecommunications) 141,600 767,907
-------------
2,527,391
-------------
CHINA 0.34%
CHINA TELECOM (HONG KONG)*
Provider of telecommunications
services (Telecommunications) 312,000 712,494
-------------
FINLAND 3.18%
NOKIA
Developer and manufacturer
of cellular phones and base
stations (Telecommunications) 58,930 4,546,777
SONERA GROUP
Provider of telecommunications
services (Telecommunications) 109,400 2,175,290
-------------
6,722,067
-------------
FRANCE 7.25%
ACCOR
Hotel operator and
provider of related services
(Entertainment and Leisure) 11,993 3,164,757
ALCATEL
Developer of telecommunications
equipment and systems
(Telecommunications) 20,125 2,473,341
CAP GEMINI
Provider of computer
consulting services (Computer
and Technology Related) 15,156 2,319,504
CARREFOUR SUPERMARCHE
Supermarket operator in Europe,
the Americas, and Taiwan
(Retailing) 3,060 2,427,307
GENSET (ADRS)*
Biomedical research company
(Drugs and Health Care) 36,000 578,250
HACHETTE FILIPACCHI MEDIAS
Printer and publisher of
magazines and newspapers; online
content provider; distributor
of cable radio (Media) 7,300 1,687,777
VALEO
Manufacturer of automobile
components (Automotive
and Related) 31,698 $ 2,682,031
-------------
15,332,967
-------------
GERMANY 4.47%
ADIDAS-SALOMON
Manufacturer and marketer of
sporting goods (Retailing) 22,330 2,203,496
METRO
Department store operator
(Retailing) 43,500 3,169,936
PORSCHE
Manufacturer of luxury sports cars
(Automotive and Related) 954 2,371,145
SIXT
Provider of automobile rental
and leasing services (Retailing) 29,845 1,720,323
-------------
9,464,900
-------------
GREECE 0.79%
COMMERCIAL BANK OF GREECE
Provider of banking services
(Financial Services) 6,210 1,087,226
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and financial
services (Financial Services) 42,000 575,400
-------------
1,662,626
-------------
HONG KONG 0.56%
HSBC HOLDINGS
Provider of international
banking and financial services
(Financial Services) 16,000 594,519
HUTCHISON WHAMPOA
Holding company with
interests in various
industries (Diversified) 65,000 582,843
-------------
1,177,362
-------------
HUNGARY 0.29%
MAGYAR TAVKOZLESI "MATAV" (ADRS)
Provider of telecommunications
services (Telecommunications) 12,000 337,500
MOL MAGYAR OLAJ-ES GAZIPARI
(GDRS)+
Oil and gas producer and
distributor (Resources) 12,250 275,319
-------------
612,819
-------------
IRELAND 1.20%
ELAN (ADRS)*
Developer, manufacturer,
and marketer of pharmaceutical
delivery systems (Drugs
and Health Care) 49,275 2,540,742
-------------
- ----------
See footnotes on page 29.
26
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
----------- ---------------
ITALY 4.04%
AEROPORTI DI ROMA
Manager, operator, and
developer of airfields and
terminals (Transportation) 217,890 $ 1,633,900
BANCA NAZIONALE DEL LAVORO "BNL"*
Provider of banking services
(Financial Services) 836,500 2,857,659
BANCA POPOLARE DI LODI
Provider of banking services
(Financial Services) 127,000 1,598,426
MEDIOLANUM
Life insurer; provider of
a wide range of financial
services (Financial Services) 373,000 2,465,646
-------------
8,555,631
-------------
JAPAN 7.17%
C TWO-NETWORK
Preserver of processed foods, such
as beverages and instant noodles
(Consumer Goods and Services) 8,000 703,960
CRESCO
Developer of computer software
(Computer and
Technology Related) 6,000 217,725
DIAMOND COMPUTER SERVICE
Provider of data processing
and software development
services (Computer and
Technology Related) 44,000 866,541
FANCL
Manufacturer and retailer of
cosmetics and nutritional
supplements (Consumer Goods
and Services) 10,800 1,538,655
H.I.S.
Travel agency specializing
in overseas and package tours
(Entertainment and Leisure) 60,600 1,665,770
KADOKAWA SHOTEN PUBLISHING
Magazine and book publisher
(Media) 6,300 960,905
KEYENCE
Manufacturer of detection
devices and measuring control
equipment (Electronics) 12,400 1,864,287
NICHII GAKKAN
Provider of hospital
administrative services
(Drugs and Health Care) 3,225 251,351
NIPPON TELEGRAPH & TELEPHONE "NTT"
Provider of telecommunications
services (Telecommunications) 182 1,982,820
NTT MOBILE COMMUNICATION
NETWORK "NTT DOCOMO"
Provider of telecommunications
services (Telecommunications) 31 1,818,563
OBIC
Provider of computer systems
support (Computer and
Technology Related) 6,000 $ 1,181,647
SAGAMI CHAIN
Noodle restaurant chain
(Restaurants) 22,000 199,120
SANIX
Provider of pest control and
industrial waste disposal
(Consumer Goods and Services) 17,500 557,301
SUNDRUG
Operator of outlet drug stores
(Retailing) 21,900 631,351
XEBIO
Retailer of outdoor clothing
(Retailing) 37,200 727,945
-------------
15,167,941
-------------
MEXICO 1.11%
FOMENTO ECONOMICO MEXICANO
"FEMSA" (ADRS)
Beverage and packaging
producer; retail store operator
(Consumer Goods and Services) 33,500 1,218,563
GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) 100,000 1,125,000
-------------
2,343,563
-------------
NETHERLANDS 4.18%
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital Equipment) 40,000 1,688,009
EQUANT*
Provider of data network services
to multinational corporations
(Business Goods and Services) 40,600 3,688,597
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS
Manufacturer of consumer
electronics and components
(Electronics) 40,080 3,454,835
-------------
8,831,441
-------------
NORWAY 1.96%
TOMRA SYSTEMS
Provider of recycling systems
used mainly for beverage
containers and crates
(Business Goods and Services) 104,550 4,152,584
-------------
PERU 0.03%
TELEFONICA DEL PERU (ADRS)
Provider of telecommunications
services (Telecommunications) 3,700 55,731
-------------
- ----------
See footnotes on page 29.
27
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
----------- ---------------
SINGAPORE 0.57%
NATSTEEL ELECTRONICS
Manufacturer of electronic
products equipment for the
computer and telecommuni-
cations industries (Electronics) 140,000 $ 470,935
OVERSEA-CHINESE BANKING
Provider of banking services
(Financial Services) 79,000 741,281
-----------
1,212,216
-----------
SPAIN 5.60%
ACTIVIDADES DE CONSTRUCCION
Y SERVICIOS
Designer and builder of public
works projects, residential homes,
and other buildings
(Construction and Property) 76,100 2,287,445
AZKOYEN
Manufacturer and marketer
of beverage vending machines
(Manufacturing and
Industrial Equipment) 57,380 1,594,880
SOCIEDAD GENERAL DE AGUAS
DE BARCELONA
Drinking water supplier; waste
management (Consumer Goods
and Services) 54,469 3,082,089
SUPERDIPLO*
Operator of supermarkets,
shopping clubs, boutiques,
and outlets (Retailing) 105,980 2,292,235
TABACALERA (CLASS A)
Manufacturer and marketer
of tobacco products (Tobacco) 133,300 2,598,349
-----------
11,854,998
-----------
SWEDEN 2.40%
L.M. ERICSSON TELEFON (SERIES B)
Manufacturer of telecom-
munications equipment
(Telecommunications) 136,280 3,580,021
SECURITAS (SERIES B)
Provider of security services
(Consumer Goods and Services) 101,300 1,501,755
-----------
5,081,776
-----------
SWITZERLAND 1.19%
CREDIT SUISSE GROUP
Provider of banking and financial
services (Financial Services) 12,725 2,525,216
-----------
UNITED KINGDOM 12.20%
ASTRAZENECA
Holding company, which
through its subsidiaries, is a
researcher and manufacturer of
chemicals and medical products
(Drugs and Health Care) 65,289 2,547,508
BODYCOTE INTERNATIONAL
Diversified manufacturer and
distributor (Industrial Goods
and Services) 148,000 $ 2,279,051
BRITISH TELECOMMUNICATIONS
Provider of telecommunications
services (Telecommunications) 55,000 922,573
CABLE & WIRELESS
Provider of global
telecommunications
services (Telecommunications) 45,000 638,314
GAMES WORKSHOP GROUP
Manufacturer and retailer
of specialty games (Retailing) 134,800 867,168
GRANADA GROUP
Television group with additional
leisure interests, including hotels
(Entertainment and Leisure) 128,800 2,734,282
HALMA
Producer of fire detection and
security equipment (Electronics) 768,066 1,284,652
HILTON GROUP
Leisure group with interests
in hotels and gaming
(Entertainment and Leisure) 375,000 1,806,266
PARITY
Provider of software engineering
and consulting services
(Computer and
Technology Related) 225,000 2,469,669
PIZZAEXPRESS
Operator of restaurant
chain (Restaurants) 245,000 3,585,593
ROLLS-ROYCE
Provider of aerospace, power
generation, transmission, and
distribution systems (Aerospace) 313,500 1,453,317
SMITHKLINE BEECHAM
Manufacturer and marketer of
pharmaceutical products;
provider of health care
products and services
(Drugs and Health Care) 50,000 660,991
THOMSON TRAVEL GROUP
International vacation and
leisure company
(Entertainment and Leisure) 500,000 1,025,259
WPP GROUP
Provider of worldwide
marketing services, including
advertising, public relations,
and market research (Business
Goods and Services) 400,000 3,541,367
-----------
25,816,010
-----------
- ----------
See footnotes on page 29.
28
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
----------- ---------------
UNITED STATES 35.19%
AES*
Supplier of electricity
(Electric and Gas Utilities) 103,100 $ 5,155,000
ALLIEDSIGNAL
Producer of aerospace and
automotive products (Aerospace) 60,300 3,542,625
AMERICAN INTERNATIONAL GROUP
Provider of insurance
(Financial Services) 29,775 3,496,702
AT&T
Provider of telecommunications
services (Telecommunications) 88,650 4,476,825
BRISTOL-MYERS SQUIBB
Developer and manufacturer
of health and personal care
products (Drugs and Health Care) 44,800 2,847,600
CBS*
Radio and television
broadcasting (Media) 82,000 3,736,125
CITIGROUP
Provider of diversified
financial services
(Financial Services) 37,700 2,836,925
DISNEY, WALT
Theme parks and hotel operator;
film production (Entertainment
and Leisure) 97,600 3,098,800
GENERAL DYNAMICS
Manufacturer of defense
products (Capital Goods) 19,500 1,369,875
GENERAL ELECTRIC
Supplier of industrial equipment
and consumer products
(Diversified) 36,700 3,871,850
HALLIBURTON
Manufacturer of products for
the energy industry (Resources) 97,900 4,172,988
KROGER*
Operator of supermarkets and
convenience stores (Consumer
Goods and Services) 56,300 3,057,794
MCI WORLDCOM*
Provider of long distance, local,
and data telecommunications
services (Telecommunications) 18,500 1,519,891
MEDTRONIC
Manufacturer of pacemakers and
related cardiovascular products
(Drugs and Health Care) 33,900 2,438,681
MERCK
Developer and manufacturer
of pharmaceuticals (Drugs
and Health Care) 37,400 2,627,350
MICROSOFT*
Provider of personal computer
operating system and application
software products (Computer
and Technology Related) 66,200 5,380,819
MOTOROLA
Provider of wireless communica-
tions and equipment
(Electronics) 13,900 1,113,738
NEWELL RUBBERMAID
Manufacturer and marketer of
diversified consumer products
(Consumer Goods and Services) 69,800 3,311,138
PFIZER
Manufacturer of health care
consumer products and
specialty chemicals (Drugs and
Health Care) 19,200 2,209,200
PHILIP MORRIS
Manufacturer of tobacco
products, food, and beverages
(Tobacco) 89,700 3,145,106
PROCTER & GAMBLE
Manufacturer and distributor
of household and personal
care products (Consumer
Goods and Services) 31,900 2,992,619
TYCO INTERNATIONAL
Worldwide provider of fire
protection devices, electronic
security services, and underwater
telecommunications systems
(Diversified) 54,900 4,460,625
XEROX
Developer, manufacturer, and
marketer of office automation
products (Business Goods
and Services) 61,000 3,583,750
------------
74,446,026
------------
TOTAL COMMON STOCKS
(Cost $136,517,003) 200,796,501
------------
CORPORATE BONDS 0.07%
(Cost $136,121)
GERMANY 0.07%
METRO FINANCE
0%, 9/7/2013
(Financial Services) 249,000** 152,867
------------
TOTAL INVESTMENTS 94.99%
(Cost $136,653,124) 200,949,368
OTHER ASSETS
LESS LIABILITIES 5.01% 10,587,930
------------
NET ASSETS 100.00% $211,537,298
============
- ----------
* Non-income producing security.
** Principal amount reported in German deutschemarks.
+ Rule 144A security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
29
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
PERFORMANCE REVIEW
For the six months ended April 30, 1999, Seligman Henderson Global Smaller
Companies Fund posted a total return of 3.05% based on the net asset value of
Class A shares. At the same time, the Fund's peer group, as measured by the
Lipper Global Small Cap Funds Average rose 16.57%, and the Salomon Smith Barney
Extended Market Index World rose 13.75%.
This underperformance relative to the Fund's benchmarks was due primarily to the
Fund's US portfolio. A number of the Fund's holdings in the healthcare sector
experienced considerable price declines. In addition, we had minimal direct
exposure to Internet stocks, which was the only sector within the US
small-capitalization universe that posted strong returns. At this time, we
believe that it is prudent to avoid most Internet stocks as long as we find
valuations in this area difficult to justify.
PORTFOLIO STRATEGY
UNITED STATES
During the six-month period, smaller companies in the US rose 14.3%, well behind
the rise in larger companies. Smaller companies staged a strong rally in
November and December, fell back in January and February, then rose strongly
again in April.
The Fund's allocation to the US began at 40.3%, peaked at 53.2% in December, and
fell to 33.50% by the end of April. Valuations for smaller companies are
attractive both in absolute terms and relative to larger companies, and we plan
to gradually increase this allocation over the coming months. We also believe
that, given the current strength of the US economy, earnings expectations for
smaller companies will likely be met.
UNITED KINGDOM
In the UK, smaller companies performed well during the period, rising 18.6%.
This return was ahead of that for larger companies, the only region where this
was the case. The outperformance relative to larger companies occurred from
January through April. In the last two months of 1998, smaller companies were
relatively weak.
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: (STANDING, FROM LEFT) ANDREW MCNALLY, WILLIAM GARNETT,
HEATHER MANNERS, ANDREW STACK, (SEATED) MIRANDA RICHARDS, IAIN C. CLARK
(PORTFOLIO MANAGER)
[PHOTO OMITTED]
US TEAM: (STANDING, FROM LEFT) TED HILLENMEYER, MIKE SULLIVAN, SONIA THOMAS
(ADMINISTRATIVE ASSISTANT), BRUCE ZIRMAN, (SEATED) RICK RUVKUN, ARSEN MRAKOVCIC
(PORTFOLIO MANAGER)
30
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
Five interest rate cuts by the Bank of England during the six-month period have
taken base rates to their lowest levels in five years, significantly improving
the economic outlook. At the same time, the current low valuations for smaller
companies have begun to attract the attention of corporate buyers.
The Fund was overweighted in the UK throughout the six-month period. The Fund
began the period with an 18.1% weighting, which was reduced to 17.2% at the end
of April. We believe that much of the positive economic expectation is already
factored into the stock prices of smaller companies and, as a result, we no
longer see greater value in the UK small-cap market. In addition, the strength
of British POUND STERLING and weakness of the Continental European economy will
likely adversely affect exporting companies, many of which are small companies.
Accordingly, we plan to further reduce this allocation over the coming months.
CONTINENTAL EUROPE
In Continental Europe, returns between countries differed widely. The best
performer, Ireland, gained 30.5%, while the worst performer, Portugal, lost
15.6%. The two largest markets, France and Germany, moved in opposite
directions, as France rose 4.9% and Germany fell 2.1%.
The Fund's weighting in Continental Europe at the beginning of the period was
22.8%, was reduced to 18.8% by the end of December, and subsequently rose to end
April at 23.5%. Over the course of the next few months, the Fund's allocation to
Continental Europe should remain stable. There are few indications that the
gloom over future growth prospects has eased, in spite of the interest rate cut
by the European Central Bank. Economic fundamentals must improve before we will
significantly increase the Fund's allocation to the region.
JAPAN
During the six months ended April 30, 1999, smaller companies in Japan rose
16.9%, substantially less than the rise in larger companies. There was little
improvement in economic fundamentals during the period, but there was a
significant change in sentiment as investors began to anticipate economic
stabilization.
At the beginning of the period, the Fund had a 5.8% weighting in Japan, lower
than that of the Fund's benchmark index. This allocation increased gradually
during the period to a slightly overweight position of 10.2% at the end of
April. We anticipate reducing the Fund's allocation to Japan over the next few
months. Having performed well on the expectation of economic stabilization, any
disappointments are likely to be harshly treated by investors.
PACIFIC BASIN
This region offered the best returns for smaller companies over the past six
months. Interest rate reductions and greater liquidity contributed to a reversal
of the poor trend of the previous six-month period. In this region, smaller
companies returned 26.3% and larger companies returned 32.5%.
We steadily increased the Fund's allocation to the region during most of the
period from a neutral 2.0% at the beginning of the period to an overweighted
3.7% at the end of April. This allocation is likely to remain in place for now.
While, given the speed of the recent rise, a pullback is possible, there is
growing confidence that the region is better positioned to tackle its structural
problems and that corporations are committed to reform.
OUTLOOK
During the past six months, investors around the world have become more
optimistic regarding global economic growth and more confident that a worldwide
crisis has indeed been averted. Against this background, the outlook for global
smaller companies is promising. Valuations remain comparatively low, while the
prospects for earnings growth are positive. In addition, it appears that
investors are beginning to look at previously neglected areas of the market,
such as smaller companies.
NOTE: ALL FIGURES ARE IN US DOLLAR TERMS. ALL SPECIFIC MARKET PERFORMANCE
INFORMATION REPRESENTS THE SALOMON SMITH BARNEY EXTENDED MARKET INDEX WORLD
COUNTRY INDEX FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1999, UNLESS OTHERWISE
STATED.
31
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
INVESTMENT RESULTS PER SHARE
Total Returns
FOR PERIODS ENDED APRIL 30, 1999
<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 (1.82)% (20.20)% 8.65% 13.85% n/a n/a
Without Sales Charge 3.05 (16.20) 9.71 14.70 n/a n/a
CLASS B**
With CDSC+ (2.33) (21.01) n/a n/a 0.72% n/a
Without CDSC 2.67 (16.85) n/a n/a 1.65 n/a
CLASS D**
With 1% CDSC 1.67 (17.62) n/a n/a n/a n/a
Without CDSC 2.67 (16.79) 8.86 n/a n/a 12.14%
LIPPER GLOBAL SMALL CAP
FUNDS AVERAGE*** 16.57 (7.59) 8.40 12.49++ 4.720 10.8800
SALOMON SMITH BARNEY
EM INDEX WORLD*** 13.75 (3.09) 9.05 11.43+++ 6.830 9.9400
NET ASSET VALUE
</TABLE>
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1998
--------------- ------------------ ---------------
CLASS A $14.54 $14.11 $17.35
CLASS B 13.82 13.46 16.62
CLASS D 13.83 13.47 16.62
Capital Gain Information
FOR THE SIX MONTHS ENDED APRIL 30, 1999
REALIZED $0.322
UNREALIZED 0.953ooo
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 charge ("CDSC"), 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% CDSC, charged on
redemptions made within one year of the date of purchase.
*** The Lipper Global Small Cap Funds Average and the Salomon Smith Barney
Extended Market Index World (Salomon Smith Barney EM Index World) are
unmanaged benchmarks that assume reinvestment of dividends. The Lipper
Global Small Cap Funds Average excludes the effect of sales charges, and
the Salomon Smith Barney EM Index World 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 CDSC is 5% for periods of one year or less, and 3% since inception.
++ From September 10, 1992.
+++ From August 31, 1992.
0 From April 30, 1996.
00 From April 30, 1993.
000 Represents the per share amount of net unrealized appreciation of portfolio
securities as of April 30, 1999.
32
<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, and assumes that all distributions are
invested in additional shares, since the commencement of investment operations
on September 9, 1992, through April 30, 1999, to a $10,000 hypothetical
investment made in the Lipper Global Small Cap Funds Average and the Salomon
Smith Barney Extended Market Index World (Salomon Smith Barney EM Index World)
for the same period. It is important to keep in mind that indices and averages
exclude the effect of fees and/or sales charges.
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE.]
<TABLE>
<CAPTION>
Class A With Class A Without Salomon Bros. Lipper Global
Date Sales Load Sales Load World EM Index Small Cap Fds. Avg.
- ---- ------------ --------------- -------------- -------------------
<S> <C> <C> <C> <C>
9/9/92 9,520 10,000 10,000 10,000
10/31/92 9,533 10,014 9,787 10,053
1/31/93 10,528 11,059 10,523 11,001
4/30/93 11,343 11,915 11,655 11,747
7/31/93 12,225 12,841 12,253 12,444
10/31/93 13,334 14,006 12,823 14,029
1/31/94 15,150 15,914 13,513 15,209
4/30/94 14,895 15,645 13,348 14,588
7/31/94 14,263 14,982 13,385 14,270
10/31/94 16,037 16,846 13,613 15,072
1/31/95 14,757 15,501 12,864 13,817
4/30/95 16,461 17,291 13,812 14,713
7/31/95 18,567 19,504 14,836 16,557
10/31/95 19,260 20,231 14,551 16,461
1/31/96 19,922 20,926 15,488 17,227
4/30/96 22,540 23,677 16,885 19,019
7/31/96 21,930 23,036 15,885 18,139
10/31/96 22,526 23,661 16,718 18,831
1/31/97 23,205 24,375 17,264 19,789
4/30/97 22,049 23,161 16,667 18,933
7/31/97 25,016 26,277 19,116 21,700
10/31/97 24,391 25,621 18,947 20,954
1/31/98 23,981 25,191 18,788 20,338
4/30/98 28,247 29,671 21,242 23,631
7/31/98 26,928 28,286 19,766 21,899
10/31/98 22,972 24,130 18,097 18,733
1/31/99 24,535 25,772 19,690 20,827
4/30/99 23,672 24,866 20,586 21,837
</TABLE>
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 32, the performances of Class B and Class 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, 1999
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/99
- -------------- ------------ -----------
Beru (Germany) 171,690 205,290
Coach USA (US) 132,900 132,900
Enaco (Spain) 311,400 311,400
ITT Educational Services (US) 74,600 74,600
Petroleum Geo-Services (Norway)246,748 246,748
Royal Canin (France) 75,365 75,365
Ryanair Holdings (Ireland) 579,281 579,281
Sez Holding (Switzerland) 14,520 14,520
Sixt (Germany) 73,900 73,900
Swisslog Holding (Switzerland) 44,581 44,581
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/99
- ---------------- ------------ -----------
Calpine (US) 305,500 92,400
CMG (Netherlands) 390,000 359,000
Cobham (UK) 600,000 --
Cox Radio (Class A) (US) 196,800 --
ECIA (France) 51,048 --
Electronics Boutique (UK) 6,240,000 --
F.I. Group (UK) 2,200,000 1,800,000
Icon (adrs) (UK) 205,000 --
Selecta Group (Switzerland) 25,031 17,147
Trinity International Holdings (UK) 935,100 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
33
<PAGE>
Performance and Portfolio Overview
Seligman Henderson Global Smaller Companies Fund
COUNTRY ALLOCATION
APRIL 30, 1999
SALOMON
SMITH BARNEY
EM INDEX
FUND WORLD
------- -----------
CONTINENTAL EUROPE .................... 23.50% 18.14%
Austria ........................... 0.11 0.11
Belgium ........................... -- 0.48
Denmark ........................... 1.96 0.31
Finland ........................... 0.28 0.37
France ............................ 3.72 3.23
Germany ........................... 3.03 3.32
Ireland ........................... 1.60 0.19
Italy ............................. 0.70 2.18
Luxembourg ........................ 0.30 --
Netherlands ....................... 2.99 2.41
Norway ............................ 2.56 0.18
Portugal .......................... -- 0.15
Spain ............................. 0.80 1.18
Sweden ............................ 1.87 1.12
Switzerland ....................... 3.58 2.91
JAPAN ................................. 10.18 9.19
PACIFIC ............................... 3.67 2.92
Australia ......................... 1.65 1.55
Hong Kong ......................... 1.15 1.02
New Zealand ....................... 0.13 0.11
Singapore ......................... 0.42 0.24
South Korea ....................... 0.10 --
Taiwan ............................ 0.08 --
Thailand .......................... 0.14 --
UNITED KINGDOM ........................ 17.23 10.78
UNITED STATES ......................... 33.47 56.82
OTHER ................................. 2.80 2.15
Bermuda ........................... 0.16 --
Canada ............................ 2.06 2.15
Israel ............................ 0.58 --
OTHER ASSETS LESS LIABILITIES ......... 9.15 --
...................................... ------ ------
TOTAL ................................. 100.00% 100.00%
====== ======
[THE FOLLOWING TABLE REPRESENTS A BAR GRAPH IN THE PRINTED PIECE.]
LARGEST INDUSTRIES
APRIL 30, 1999
Percent of
Net Assets
----------
BUSINESS SERVICES ...................... $54,800,360 9.06%
CONSTRUCTION AND PROPERTY .............. $44,639,331 7.38%
CONSUMER GOODS AND SERVICES ............ $42,328,339 6.99%
MANUFACTURING .......................... $37,040.272 6.10%
RETAILING .............................. $36,885,622 6.10%
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED PIECE.]
REGIONAL ALLOCATION
APRIL 30, 1999
Percent of
Net Assets
----------
United States 33.47%
Continental Europe 23.50%
United Kingdom 17.23%
Japan 10.18%
Pacific 3.67%
Other 2.80%
Other Assets Less Liabilities 9.15%
LARGEST PORTFOLIO HOLDINGS
APRIL 30, 1999
SECURITY VALUE
- ------------ -----------
Informa Group (UK) ................... $16,342,285
Ashtead Group (UK) ................... 13,915,061
Parity (UK) .......................... 11,031,188
CMG (Netherlands) .................... 9,711,225
F.I. Group (UK) ...................... 9,553,005
Tilbury Douglas (UK) ................. 9,105,718
Burr-Brown (US) ...................... 8,460,156
PizzaExpress (UK) .................... 7,976,116
MemberWorks (US) ..................... 7,278,863
Premier Parks (US) ................... 6,881,394
34
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ----------
COMMON STOCKS 90.50%
AUSTRALIA 1.65%
BRL HARDY
Owner and operator of
vineyards; producer and
distributor of wine and beer
(Consumer Goods and Services) 201,500 $ 899,519
COCHLEAR
Developer and marketer of
hearing aids (Medical
Products and Technology) 153,600 1,183,446
CSL
Manufacturer and marketer
of human and veterinary
pharmaceutical products
(Medical Products
and Technology) 121,200 961,867
DATA ADVANTAGE*
Provider of credit risk
information for the
consumer and commercial
markets (Business Services) 317,400 932,012
FUTURIS
Mini-conglomerate with
interests in automobile
components, livestock,
farm insurance, and
financial services
(Automotive Parts
Manufacturing) 845,122 1,224,038
NATIONAL FOODS
Marketer of dairy products;
fruit juice processor;
producer of food packaging
(Consumer Goods and Services) 487,900 1,009,965
PASMINCO
Explorer, producer, and
developer of lead, zinc,
and silver mines (Metals) 1,119,600 1,251,356
PERPETUAL TRUSTEES AUSTRALIA
Provider of diversified
financial services
(Financial Services) 39,800 550,124
STOCKLAND TRUST GROUP
Real estate developer and
marketer (Construction
and Property) 372,294 911,002
TAB
Gaming company which
markets wagers on horse
racing and sporting events
(Leisure and Hotels) 495,800 1,075,503
-------------
9,998,832
-------------
AUSTRIA 0.11%
BAU HOLDING
Construction and civil
engineering (Construction
and Property) 19,914 $ 652,923
-------------
BERMUDA 0.16%
DAIRY FARM INTERNATIONAL HOLDINGS
International food retailer,
manufacturer, and wholesaler
(Retailing) 537,500 795,500
STIRLING COOKE BROWN HOLDINGS
Provider of risk management
services and products
(Financial Services) 45,800 186,063
-------------
981,563
-------------
CANADA 2.06%
CELESTICA*
Provider of diversified
services, including design,
assembly, and product
assurance (Electronics) 57,500 2,249,688
CINAR (CLASS B)*
Entertainment and education
company which produces
family-oriented films (Media) 85,000 1,779,687
FIRSTSERVICE*
Provider of property
management and
business services
(Business Services) 126,300 1,831,350
PMC-SIERRA*
Provider of high-speed
networking circuits
(Technology) 21,200 2,033,875
TELEGLOBE
Owner and operator of a
worldwide telecommunications
network (Telecommunications) 60,000 1,764,948
TROJAN TECHNOLOGIES*
Worldwide environmental
company which specializes
in the disinfection of drinking
water via ultraviolet light
(Support Services) 100,000 2,808,027
-------------
12,467,575
-------------
DENMARK 1.96%
DANSKE TRAELAST
Timber supply company
(Construction and Property) 38,648 2,585,114
SONDAGSAVISEN
Operator and distributor of
companies in the media
industry (Media) 65,741 4,116,648
- --------------
See footnotes on page 44.
35
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ------------
DENMARK (CONTINUED)
SYDBANK
Commercial financial services
provider (Financial Services) 64,981 $ 2,191,742
TK DEVELOPMENT
Holding company which
owns and invests in real
estate, and provides property
management services
(Construction and Property) 32,031 2,963,048
-------------
11,856,552
-------------
FINLAND 0.28%
RAPALA NORMARK*
Manufacturer and distributor of
fishing and hunting equipment
(Consumer Goods and Services) 228,650 1,717,005
-------------
FRANCE 3.72%
COMPAGNIE FRANCAISE D'ETUDES
ET DE CONSTRUCTION TECHNIP
"TECHNIP"
Engineering contractor
(Construction and Property) 37,252 4,495,492
DU PAREIL AU MEME
Manufacturer and
distributor of clothing
for children (Retailing) 36,065 2,399,267
ETAM DEVELOPPEMENT*
Retailer of women's clothing
and intimate apparel (Retailing) 74,198 2,903,594
L'EUROPEENNE D'EXTINCTEURS
Manufacturer and distributor
of fire extinguishers
(Manufacturing) 59,085 2,937,089
GENSET (ADRS)*
Biomedical research company
(Drugs and Health Care) 144,295 2,317,738
ROYAL CANIN
International manufacturer
and retailer of cat and dog food
(Veterinary Products) 75,365 3,892,229
SOCIETE VIRBAC
Manufacturer of veterinary
drugs and products
(Veterinary Products) 67,472 3,535,975
-------------
22,481,384
-------------
GERMANY 2.68%
BERU
Developer, manufacturer, and
marketer of diesel engine
systems and automotive products
(Automotive Parts
Manufacturing) 205,290 4,103,662
BIEN-HAUS
Provider of residential and
multi-family homes
(Construction and Property) 9,850 1,677,274
HAWESKO HOLDING
Marketer of alcoholic beverages
(Consumer Goods and Services) 102,857 4,133,895
SIXT
Provider of automobile rental
and leasing services (Retailing) 73,900 4,259,738
TECIS HOLDING*
Provider of financial planning
services (Financial Services) 300 22,565
ZAPF CREATION*
Manufacturer of interactive
functional dolls and
inflatable swimming devices
(Manufacturing) 95,000 2,009,535
-------------
16,206,669
-------------
HONG KONG 1.15%
DAH SING FINANCIAL GROUP
Provider of banking services
(Financial Services) 222,000 700,302
ESPRIT HOLDINGS
Retail and wholesale distributor
of high-quality fashion
products (Retailing) 873,000 518,114
GIORDANO INTERNATIONAL
Clothing retailer (Retailing) 1,900,000 882,490
JOHNSON ELECTRIC HOLDINGS
Designer, manufacturer, and
marketer of micromotors
(Electronics) 241,000 719,816
KERRY PROPERTIES
Investor and developer in
the real estate industry
(Construction and Property) 991,000 1,105,970
LI & FUNG
Export trader and wholesale
distributor of consumer
products (Consumer Goods
and Services) 356,200 873,174
NG FUNG HONG
Distributor of livestock
(Business Services) 778,000 752,826
SOUTH CHINA MORNING POST HOLDINGS
English language
newspaper (Media) 1,878,000 1,132,741
YANZHOU COAL MINING (SERIES H)*
Mining company producing
prime-quality, low-sulphur
coal (Resources) 1,264,000 296,805
-------------
6,982,238
-------------
IRELAND 1.60%
ESAT TELECOM GROUP (ADRS)*
Provider of telecommunications
services (Telecommunications) 95,200 4,605,300
- ----------------
See footnotes on page 44.
36
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- -----------
IRELAND (CONTINUED)
RYANAIR HOLDINGS*
Aircraft operator
(Transportation) 579,281 $ 5,085,215
-----------
9,690,515
-----------
ISRAEL 0.58%
TEVA PHARMACEUTICAL INDUSTRIES
Developer and marketer of
pharmaceutical, disposable
medical, and veterinary
products (Drugs and
Health Care) 76,100 3,479,197
-----------
ITALY 0.70%
LA DORIA
Distributor of tomato-based
products and canned fruit
(Consumer Goods
and Services) 1,482,390 4,233,194
-----------
JAPAN 10.18%
AIYA
Operator of restaurant chain
(Restaurants) 66,600 772,465
ANRITSU
Manufacturer of
electronic equipment
for diversified industries
(Electronics) 49,000 438,567
ASAHI DIAMOND INDUSTRIAL
Manufacturer of diamond-tipped
tools (Manufacturing) 108,000 538,529
ASATSU-DK
Advertising agency (Advertising) 70,400 1,767,006
BENESSE
Provider of educational services
(Business Services) 31,200 2,604,249
EIGHTEENTH BANK
Provider of banking services
(Financial Services) 170,000 713,765
ENPLAS
Manufacturer of electronic
components and engineering
plastics (Electronics) 53,000 1,421,328
FUJICCO
Food manufacturer (Consumer
Goods and Services) 98,760 1,812,566
FUJITSU BUSINESS SYSTEMS
Dealer of electronics and
communications equipment
(Business Services) 42,900 783,759
GLORY
Manufacturer and major exporter
of currency-handling machines
(Manufacturing) 83,000 1,791,117
HIGASHI NIHON HOUSE
Home builder (Construction
and Property) 116,000 661,052
H.I.S.
Travel agency specializing in
overseas and package tours
(Leisure and Hotels) 52,000 1,429,374
HITACHI INFORMATION SYSTEMS
Leading data processing firm
(Computer Software) 64,000 814,716
HITACHI MEDICAL
Manufacturer of medical
equipment (Medical Products
and Technology) 76,800 891,414
HOGY MEDICAL
Producer of disposable surgical
gowns and supplies (Medical
Products and Technology) 28,000 1,121,643
HOKUTO
Company which grows
mushrooms for the purpose
of researching bacteria
(Consumer Goods and Services) 19,000 589,147
HORIBA
Manufacturer of instruments
and analyzers (Electronics) 147,000 1,629,843
IINO KAIUN KAISHA
Shipping company
(Transportation) 387,000 846,486
IYO BANK
Provider of banking services
(Financial Services) 115,000 673,664
JAPAN INFORMATION
PROCESSING SERVICE
Computer software developer
(Computer Software) 61,100 793,673
KENTUCKY FRIED CHICKEN
Fast food restaurants
(Restaurants) 134,000 1,493,568
KISSEI PHARMACEUTICAL
Manufacturer, seller, importer,
and exporter of medical
products (Drugs and Health Care) 38,000 810,476
KOMATSU SEIREN
Printer of long-staple fabrics
(Manufacturing) 287,000 1,103,985
KOMORI
Manufacturer of offset printing
machines (Capital Goods) 101,000 1,870,605
MASPRO DENKOH
Manufacturer of reception-related
telecommunications equipment
(Telecommunications) 71,600 834,058
MITSUBISHI CABLE INDUSTRIES
Manufacturer of wire and cable
products (Manufacturing) 280,000 490,425
- ---------------
See footnotes on page 44.
37
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
JAPAN (CONTINUED)
MITSUBISHI GAS CHEMICAL
Chemical producer
(Chemicals) 277,000 $ 879,807
MITSUI HOME
Home builder
(Construction and Property) 299,000 1,608,699
NICHICON
Manufacturer of electrical
equipment (Manufacturing) 66,000 871,150
NIPPON BROADCASTING SYSTEM
Vendor of time slots of radio
broadcasting; producer
and marketer of radio programs
(Media) 17,000 776,451
NIPPON SEIKI
Manufacturer of automotive
components (Automotive
Parts Manufacturing) 126,000 844,752
NISHIO RENT ALL
Rentor of construction equipment
(Construction and Property) 94,500 906,788
NISSHA PRINTING
Integrated printing firm
(Paper and Printing) 138,000 959,899
NISSHIN FIRE & MARINE INSURANCE
Non-life insurance company
(Financial Services) 176,000 501,488
OKINAWA ELECTRIC POWER
Supplier of electricity to Okinawa
Island (Electric Utilities) 49,906 1,045,590
OLYMPUS OPTICAL
Manufacturer of
optoelectronic and other
products (Electronics) 126,000 1,550,119
OTSUKA KAGU
Furniture retailer (Retailing) 7,300 917,662
RENGO
Manufacturer of corrugated
board and jute liners
(Paper and Printing) 293,000 1,085,322
RYOYO ELECTRO
Distributor of electronic
components (Electronics) 144,000 1,701,571
SAGAMI CHAIN
Noodle restaurant chain
(Restaurants) 94,000 850,786
SANKYO
Manufacturer of pachinko game
equipment (Manufacturing) 117,100 4,062,803
SANYO SPECIAL STEEL
Steel manufacturer (Metals) 945,000 966,185
SHIMACHU
Furniture retailer (Retailing) 61,600 1,393,840
SODICK
Manufacturer of
electrodischargers
(Manufacturing) 171,000 965,883
SUNDRUG
Operator of outlet drug stores
(Retailing) 51,600 1,487,568
TAKASAGO INTERNATIONAL
Specialty chemicals producer,
including fragrances, flavorings,
and aromatic chemicals
(Chemicals) 146,000 725,565
TOKYO STYLE
Manufacturer of women's
ready-to-wear apparel
(Manufacturing) 82,000 862,435
TOWA PHARMACEUTICAL
Generic drug wholesaler
(Drugs and Health Care) 83,000 862,518
TOYO INK MANUFACTURING
Ink manufacturer (Chemicals) 224,000 519,992
TSUBAKI NAKASHIMA
Manufacturer of ball bearings
(Manufacturing) 239,900 1,678,747
TSUDAKOMA*
Manufacturer of air-jet looms
(Manufacturing) 282,000 699,535
TSUTSUMI JEWELRY
Manufacturer and retailer of
jewelry (Retailing) 94,200 1,942,024
XEBIO
Retailer of clothing (Retailing) 69,400 1,358,047
YOKOHAMA REITO
Processor and seller of seafood
and livestock products; cold
storage (Distribution) 118,000 860,339
-------------
61,583,045
-------------
LUXEMBOURG 0.30%
SBS BROADCASTING*
Television and radio broadcaster
(Media) 58,200 1,844,213
-------------
NETHERLANDS 2.99%
ATHLON GROEP
Automotive service supplier
(Consumer Goods and Services) 98,994 2,743,166
BETER BED HOLDING
Operator of retail outlets which
sell furniture and other
bedroom accessories (Retailing) 50,500 1,455,458
CMG
Information technology
consulting (Support Services) 359,000 9,711,225
SAMAS GROEP
Manufacturer of office
furniture (Manufacturing) 283,332 4,165,359
-------------
18,075,208
-------------
- -------------
See footnotes on page 44.
38
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
NEW ZEALAND 0.13%
AUCKLAND INTERNATIONAL AIRPORT
Owner and operator of the
Auckland International
Airport (Transportation) 231,000 $ 400,336
SKY NETWORK TELEVISION*
Operator of pay television
(Media) 243,620 401,777
-------------
802,113
-------------
NORWAY 2.56%
EKORNES
Manufacturer of home
furnishings (Manufacturing) 573,242 5,655,375
PETROLEUM GEO-SERVICES*
Four-dimensional deep-sea
mapping company for the
oil-drilling industry (Industrial
Goods and Services) 246,748 4,157,306
TANDBERG TELEVISION*
Developer, manufacturer, and
marketer of television broadcast
systems (Telecommunications) 595,497 5,646,040
-------------
15,458,721
-------------
SINGAPORE 0.42%
ALLGREEN PROPERTIES*
Developer of real estate
(Construction and Property) 37,000 22,490
JURONG SHIPYARD
Builder and maintenance
provider of ships
(Transportation) 145,000 603,275
KEPPEL TAT LEE BANK
Provider of banking services
(Financial Services) 363,000 694,081
SINGAPORE LAND
Real estate developer for
investment and trading
purposes (Financial Services) 194,000 623,960
VENTURE MANUFACTURING
Contract manufacturer for
the electronics industry
(Electronics) 109,000 598,230
-------------
2,542,036
-------------
SOUTH KOREA 0.10%
ATLANTIS KOREAN SMALLER COMPANIES
FUND*
Closed-end fund which invests
in Korea (Miscellaneous) 44,000 630,520
-------------
SPAIN 0.80%
ENACO*
Operator of supermarkets
and wholesale outlets
(Retailing) 311,400 2,799,494
TELEPIZZA*
Operator of pizza restaurant
chain (Restaurants) 324,748 2,060,818
-------------
4,860,312
-------------
SWEDEN 1.87%
BURE INVESTMENT AKTIEBOLAGET
Investment company
(Financial Services) 540,864 3,303,505
FINNVEDEN (SERIES B)
Industrial conglomerate
(Manufacturing) 105,400 1,637,539
MUNKSJO
Producer of specialty paper
(Paper and Printing) 171,517 1,383,234
NOBEL BIOCARE
Developer of titanium
implants, hearing aids, and
facial prostheses (Medical
Products and Technology) 313,256 4,959,757
-------------
11,284,035
-------------
SWITZERLAND 3.58%
BON APPETIT HOLDING
Wholesale food retailer (Retailing) 4,745 2,754,830
KABA HOLDING
Provider of electronic and
mechanical security systems
(Business Services) 7,768 4,076,754
SELECTA GROUP
Owner and operator of food
and beverage vending machines
(Consumer Goods and Services) 17,147 5,680,608
SEZ HOLDING
Producer of spin etchers, which
are devices used by wafer
and chip manufacturers
(Manufacturing) 14,520 3,857,776
SWISSLOG HOLDING
Producer and installer of
automation systems
(Industrial Goods and Services) 44,581 5,278,886
-------------
21,648,854
-------------
TAIWAN 0.08%
TAIWAN AMERICAN FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) 36,100 508,649
-------------
THAILAND 0.14%
NATIONAL FINANCE*
Provider of financial services
(Financial Services) 1,228,000 877,143
-------------
- ----------------
See footnotes on page 44.
39
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
UNITED KINGDOM 17.23%
AEA TECHNOLOGY
Provider of engineering and
research and development
services (Industrial Goods
and Services) 114,300 $ 608,454
ALLIED LEISURE
Bowling alley operator
(Leisure and Hotels) 4,625,000 1,822,348
ASHTEAD GROUP
Rentor of equipment for
the construction industry
(Construction and Property) 3,820,000 13,915,061
BTG
Technology transfer
company assisting in the
commercialization of
technological innovations
(Technology) 328,000 1,411,079
CHIROSCIENCE GROUP*
Pharmaceutical company
specializing in pharmaceuticals
for cancer, pain, and
inflammatory disorders
(Drugs and Health Care) 255,000 902,228
CLINTON CARDS
Retailer of greeting cards
(Retailing) 1,695,325 6,339,127
DAWSONGROUP
Rentor of commercial
vehicles (Transportation) 1,062,900 2,649,584
DRUCK HOLDINGS
Worldwide engineering group
(Industrial Goods and Services) 106,000 438,972
F.I. GROUP
Designer and builder of
software applications
(Computer Software) 1,800,000 9,553,005
GAMES WORKSHOP GROUP
Manufacturer and retailer
of specialty games (Retailing) 350,000 2,251,550
GWR GROUP
Local commercial radio
station operator (Media) 908,700 5,166,108
INFORMA GROUP
Provider of business
information for diversified
global markets
(Business Services) 3,056,100 16,342,285
NATIONAL EXPRESS GROUP
Long distance coach services
operating in the UK and
Europe (Transportation) 305,000 5,685,083
PARITY
Provider of software
engineering and consulting
services (Computer Software) 1,005,000 11,031,188
PIZZAEXPRESS
Operator of restaurant chain
(Restaurants) 545,000 7,976,116
SHIRE PHARMACEUTICALS GROUP*
Biotechnology company
specializing in metabolic bone
and Alzheimer's diseases
(Drugs and Health Care) 450,000 3,318,222
TILBURY DOUGLAS
Building contractor
(Construction and Property) 1,939,000 9,105,718
TOROTRAK*
Designer and developer of
automobile transmission
systems (Automotive Parts
Manufacturing) 328,000 640,920
TRIFAST
Manufacturer and distributor
of fasteners for the
electronics industry
(Electrical Distribution) 463,800 4,997,573
-------------
104,154,621
-------------
UNITED STATES 33.47%
ABACUS DIRECT*
Provider of marketing research
services to the direct marketing
industry (Business Services) 24,200 1,811,975
ACXIOM*
Provider of data processing
services (Computer Software) 119,900 3,019,981
AFFILIATED COMPUTER
SERVICES (CLASS A)*
Provider of information
technology services and
electronic funds transfer
processing (Business Services) 44,300 1,694,475
AFFILIATED MANAGERS GROUP*
Holding company specializing
in asset management
(Financial Services) 51,900 1,508,344
ALLIED WASTE INDUSTRIES*
Provider of integrated waste
disposal services (Industrial
Goods and Services) 81,600 1,443,300
AMERICAN CAPITAL STRATEGIES
Provider of commercial
financing (Financial Services) 70,900 1,247,397
AMERICAN HOMESTAR*
Retailer and producer of
manufactured homes
(Manufacturing) 228,800 1,615,900
- -----------
See footnotes on page 44.
40
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
ANALOG DEVICES*
International manufacturer
and marketer of linear and
digital integrated circuits
(Technology) 91,200 $ 3,203,400
ANTEC*
Developer and supplier of
products for the cable
television industry
(Telecommunications) 128,300 3,492,166
APPLIED GRAPHICS TECHNOLOGIES*
Provider of digital media
asset services; publisher of
greeting cards and calendars
(Paper and Printing) 99,800 1,019,831
AVANT!*
Developer and marketer
of software products that
assist design engineers
(Computer Software) 368,800 5,047,950
AVX
Manufacturer and supplier of
passive electronic components
and related products
(Electronics) 179,100 3,526,031
BACOU USA*
Designer and manufacturer of
personal protective gear
(Industrial Goods and Services) 106,000 1,517,125
BARR LABORATORIES*
Developer, manufacturer, and
marketer of generic prescription
drugs (Drugs and Health Care) 53,200 1,599,325
BARRETT RESOURCES*
Explorer, developer, and
producer of oil and gas (Energy) 28,300 859,612
BURR-BROWN*
Manufacturer of microelectric
data devices for business
end-users (Technology) 318,500 8,460,156
CABOT OIL & GAS (CLASS A)
Explorer, developer, and
producer of oil and gas
(Energy) 120,500 2,108,750
CALPINE*
Developer, marketer, and
operator of power generation
facilities (Electric Utilities) 92,400 3,938,550
CAREER EDUCATION*
Provider of private post-
secondary education (Schools) 78,900 2,692,462
CAREY INTERNATIONAL*
Worldwide provider of
chauffeured vehicle service
(Transportation) 52,900 925,750
CARRIAGE SERVICES*
Provider of funeral products
and services (Consumer
Goods and Services) 133,800 2,567,287
CASELLA WASTE SYSTEMS (CLASS A)*
Provider of non-hazardous
solid waste collection,
disposal, and recycling
services (Capital Goods) 105,350 2,646,919
COACH USA*
Provider of transportation
services (Transportation) 132,900 3,156,375
COGNEX*
Manufacturer of machine
vision systems (Electronics) 192,500 5,588,516
COVANCE*
Provider of medical laboratory
and testing services
(Drugs and Health Care) 50,200 1,101,262
CRUSADER HOLDING*
Provider of community
banking services, including
residential mortgages and
commercial leases
(Financial Services) 29,210 292,100
DURA PHARMACEUTICALS*
Developer and retailer of
prescription pharmaceutical
products for the treatment of
allergies, asthma, pneumonia,
and related respiratory conditions
(Drugs and Health Care) 75,000 902,344
EDUTREK INTERNATIONAL (CLASS A)*
Operator of the American
InterContinental University
(Schools) 136,900 705,891
FORRESTER RESEARCH*
Independent research company
which studies changes in future
technology and its impact on
businesses, consumers, and
society (Consulting Services) 9,100 311,675
FORWARD AIR*
Provider of transportation
services to the airline industry
(Transportation) 20,100 445,969
GENERAL SEMICONDUCTOR*
Designer and manufacturer
of power semiconductors
(Technology) 110,600 829,500
- --------------
See footnotes on page 44.
41
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
GLENAYRE TECHNOLOGIES*
Manufacturer of paging
infrastructure equipment
(Telecommunications) 279,700 $ 935,247
HA-LO INDUSTRIES*
Distributor of specialty
advertising products
(Advertising) 331,000 3,889,250
HANGER ORTHOPEDIC GROUP*
Provider of orthopedic and
prosthetic rehabilitation
services (Medical Products
and Technology) 103,700 1,516,612
HEALTH MANAGEMENT ASSOCIATES
(CLASS A)*
Operator of rural community
hospitals (Medical Products
and Technology) 89,500 1,398,437
HMT TECHNOLOGY*
Supplier of high-performance
thin-film disks for high-end,
high-capacity, hard disk drives
(Technology) 32,200 93,581
INDUS INTERNATIONAL*
Worldwide developer and
marketer of management
software and implementation
services (Business Services) 173,200 768,575
INSIGNIA FINANCIAL GROUP*
Provider of real estate
management services
(Financial Services) 114,999 1,444,675
INSO*
Marketer and developer of
textual information software
(Computer Software) 147,200 1,053,400
INTEGRATED ELECTRICAL SERVICES*
Provider of electrical contracting
and maintenance services to
the commercial, industrial,
and residential markets
(Electronics) 58,700 1,008,906
ITT EDUCATIONAL SERVICES*
Provider of technology-oriented
schooling (Schools) 74,600 1,832,362
IVEX PACKAGING*
Manufacturer of specialty
packages (Industrial
Goods and Services) 117,900 2,321,156
KEYSTONE AUTOMOTIVE INDUSTRIES*
Distributor of aftermarket
collision replacement parts for
automobiles and light trucks
(Distribution) 111,600 1,698,412
KLA-TENCOR*
Manufacturer of yield
management and process
monitoring for the
semiconductor industry
(Technology) 13,600 673,200
MARKET FACTS*
Compiler of information for
the optimization of the
marketing decision process
(Business Services) 93,400 2,839,944
MCDERMOTT INTERNATIONAL
Manufacturer of steam-generating
and environmental equipment and
products; provider of engineering
and construction services
(Industrial Goods and Services) 77,700 2,253,300
MEMBERWORKS*
Provider of membership
service programs for various
industries (Consumer
Goods and Services) 165,900 7,278,862
METAMOR WORLDWIDE*
International provider of
information technology
and staffing services
(Business Services) 21,600 423,225
METRIS COMPANIES
Direct marketer of consumer
credit cards (Financial Services) 28,200 1,730,775
MICROCHIP TECHNOLOGY*
Supplier of field-programmable
microcontrollers (Technology) 152,500 5,347,031
MMI COMPANIES
International health care risk
management company
(Financial Services) 119,600 1,853,800
MODIS PROFESSIONAL SERVICES*
Provider of temporary
personnel services
(Business Services) 211,000 2,439,688
NATIONAL INSTRUMENTS*
Provider of instrumentation
hardware and software
products for the engineering
and scientific industries
(Technology) 114,600 3,899,981
NOVA*
Provider of transaction
processing services
(Business Services) 118,272 3,075,072
NOVELLUS SYSTEMS*
Manufacturer of wafer
fabrication systems for the
disposition of thin films
(Electronics) 39,800 1,881,794
- -------------
See footnotes on page 44.
42
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
OAK INDUSTRIES*
Manufacturer of cable television
connectors and fiber optic
components (Electronics) 24,400 $ 1,018,700
OM GROUP
Producer of specialty
chemicals (Chemicals) 140,800 5,121,600
OMNICARE
Provider of pharmaceutical
services to long-term care
institutions (Drugs and
Health Care) 50,800 1,222,375
PERSONNEL GROUP OF AMERICA*
Provider of personnel
staffing services
(Business Services) 150,900 1,376,963
PHARMACEUTICAL PRODUCT
DEVELOPMENT*
Provider of consulting services
in the discovery, environmental,
and life sciences (Medical
Products and Technology) 3,600 104,625
PIER 1 IMPORTS
Retailer specializing in
decorative home furnishings,
gifts, and related items
(Retailing) 137,600 1,014,800
PREMIER PARKS*
Owner and operator of
regional theme parks
(Leisure and Hotels) 199,100 6,881,394
PRE-PAID LEGAL SERVICES*
Underwriter and marketer
of legal service plans
(Business Services) 79,400 2,262,900
PRIMARK*
Provider of information
through software and
databases (Business Services) 132,800 3,062,700
PRISON REALTY TRUST
Real estate investment trust
investing in prisons
(Construction and Property) 206,600 4,028,700
PROFESSIONAL DETAILING*
Provider of consulting services
to the pharmaceutical industry
(Business Services) 82,300 2,407,275
PROVANT*
Provider of training and
development services
(Business Services) 139,700 2,566,988
PROVINCE HEALTHCARE*
Provider of health care
services in non-urban markets
(Drugs and Health Care) 122,600 2,716,356
PSS WORLD MEDICAL*
Distributor of medical
supplies, equipment, and
pharmaceuticals (Drugs
and Health Care) 449,900 4,400,584
RENAL CARE GROUP*
Provider of dialysis and
ancillary services (Medical
Products and Technology) 44,900 938,691
RENEX*
Provider of dialysis and
ancillary services
(Drugs and Health Care) 155,100 649,481
RESORTQUEST INTERNATIONAL*
Provider of upscale vacation
condominiums and home
rentals (Leisure and Hotels) 75,300 1,261,275
REXALL SUNDOWN*
Developer and retailer of
vitamins, nutritional
supplements, and health
products (Consumer
Goods and Services) 91,900 1,593,891
SANMINA*
Provider of services for
equipment manufacturers
in the electronics industry
(Industrial Goods
and Services) 58,300 3,866,019
SANTA FE SNYDER*
Explorer, producer, and
developer of oil and gas
(Resources) 241,800 2,176,200
SCHEIN PHARMACEUTICAL*
Developer, manufacturer,
and vendor of generic
pharmaceuticals
(Drugs and Health Care) 37,500 480,469
SNYDER COMMUNICATIONS*
Provider of global marketing
services (Advertising) 32,400 951,750
SOLA INTERNATIONAL*
Designer and manufacturer
of optical lenses (Consumer
Goods and Services) 29,900 444,763
STEINWAY MUSICAL INSTRUMENTS*
Manufacturer of musical
equipment (Consumer
Goods and Services) 59,600 1,404,325
STRUCTURAL DYNAMICS RESEARCH*
Developer of mechanical design
software (Computer Software) 140,100 2,727,572
- ----------------
See footnotes on page 44.
43
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
SUNGARD DATA SYSTEMS*
Provider of computer disaster
recovery services, as well
as health care information and
investment support systems
(Computer Software) 53,800 $ 1,718,238
SUPERIOR SERVICES*
Provider of solid waste
collection, disposal, and
recycling services
(Business Services) 107,500 1,995,469
TOTAL RENAL CARE HOLDINGS*
Provider of dialysis services
(Drugs and Health Care) 227,999 3,163,486
TRANSACTION SYSTEMS ARCHITECTS
(CLASS A)*
Worldwide developer and
marketer of software products
for electronic funds transfer
(Technology) 82,200 2,653,519
TRIANGLE PHARMACEUTICALS*
Developer of new drugs,
primarily in the antiviral area
(Drugs and Health Care) 64,000 916,000
U.S. FOODSERVICE*
Distributor of food and
related products
(Business Services) 83,600 3,516,425
UCAR INTERNATIONAL*
Manufacturer of graphite
and carbon electrodes
(Capital Goods) 204,700 4,695,306
UNIGRAPHICS SOLUTIONS (CLASS A)*
International provider of
services used for virtual
product development
(Business Services) 82,700 1,230,163
UNITED RENTALS*
Equipment rental supplier
for the construction industry
and homeowners (Consumer
Goods and Services) 33,200 989,775
UNIVERSAL HEALTH SERVICES (CLASS B)*
Owner and operator of
health care institutions
(Drugs and Health Care) 46,600 2,414,463
WASTE CONNECTIONS*
Provider of solid waste
collection, disposal, and
recycling services
(Industrial Goods and Services) 82,800 2,189,025
WILMAR INDUSTRIES*
Marketer and distributor of
repair and maintenance
products to the apartment
housing market (Retailing) 117,100 1,412,519
-------------
202,512,387
-------------
TOTAL COMMON STOCKS
(Cost $504,972,185) 547,529,504
PREFERRED STOCKS 0.35%
(Cost $3,738,171)
GERMANY 0.35%
GERRY WEBER INTERNATIONAL*
Designer and manufacturer
of women's apparel
(Manufacturing) 122,394 2,097,090
-------------
TOTAL INVESTMENTS 90.85%
(Cost $508,710,356) 549,626,594
OTHER ASSETS
LESS LIABILITIES 9.15% 55,386,080
-------------
NET ASSETS 100.00% $605,012,674
=============
- -----------
* Non-income producing security.
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
44
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Technology Fund
PERFORMANCE REVIEW
Seligman Henderson Global Technology Fund posted a total return of 34.75% based
on the net asset value of Class A shares for the six months ended April 30,
1999. This compares to 19.01% for the Lipper Global Funds Average, 58.70% for
the Lipper Science & Technology Funds Average, and 19.78% for the Morgan Stanley
Capital International (MSCI) World Index.
PORTFOLIO STRATEGY
In the Fund's last annual report for the year ended October 31, 1998, we voiced
our enthusiasm for the technology sector. This confidence proved sound, and
global technology shares have performed well with spectacular increases in the
US, where the Pacific Stock Exchange Technology Index rose 44%, and in Japan
where, after a long period of underperformance, small companies returned to
favor and growth stocks performed particularly well. European technology shares
didn't perform as strongly, but still gained more than 20% for the period.
The most important developments of the past six months have been the return to
favor of the semiconductor-related sectors and the continued spectacular
performance of Internet and communications stocks. Fears of global recession
have ebbed and a strong fourth quarter 1998 for the PC market increased optimism
regarding an upturn for the semiconductor industry. As the world economy
recovered, component demand has increased and order trends for semiconductor
production equipment
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]
WEST COAST TECHNOLOGY TEAM: (STANDING, FROM LEFT) MARIANNE HARLOW
(ADMINISTRATIVE ASSISTANT), PAUL WICK (PORTFOLIO MANAGER), (SEATED) PAUL
KRIEGER, PATRICK RENDA
[PHOTO OMITTED]
EAST COAST TECHNOLOGY TEAM: (STANDING, FROM LEFT) LAWRENCE ROSSO, KEI YAMAMOTO,
SHANEAN AUSTIN (ADMINISTRATIVE ASSISTANT), (SEATED) STORM BOSWICK
45
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Technology Fund
companies have turned sharply higher. Consequently, the sector has performed
very well and the Fund has benefited from its positions in both the US and Asia.
Demand for Internet access continues unabated, with both consumer and business
use growing dramatically. The Internet sector has been marked by both an
increase in mergers and acquisitions, and by a sharp increase in initial public
offerings. The explosion in data traffic is driving a massive spending increase
on communications networks and is accelerating revenues for communications
carriers. Companies supplying the infrastructure on which these networks are
built have enjoyed extremely strong demand, and carriers have experienced strong
stock-price performance.
Most Internet-related exposure can only be obtained in the US, and the Fund's
relative performance has suffered from our very modest weighting in this group.
At this time, we believe that the fundamentals for US Internet companies are
weak and do not justify the high prices for their stocks. Nevertheless, some of
our communications holdings outside the US have risen strongly as a result of
international investors seeking indirect exposure to the Internet.
The superior earnings performance of the technology sector in most geographical
areas has allowed it to outperform the broad stock market. This seems likely to
continue. Recent earnings results from most areas of the industry have been
positive and, in the more cyclical sub-sectors, year-on-year comparisons will
become that much easier over the next few calendar quarters.
While investor interest in cyclical and value stocks has increased over the past
few months, we do not expect that this will persist for more than a couple of
quarters. However, over the next six months, the approach of the new millennium
is likely to cause companies to reduce their spending on information technology
until the Year 2000 issue is behind us. This will likely result in lower
earnings for many companies, and we have already seen it exert a negative impact
on some software and services companies. Consequently, European technology,
which is heavily exposed to software and services, may be flat to down over the
short term, while share-price volatility may increase in the US around the
second- and third-quarter earnings seasons. In Asia, the economy has shown signs
of recovery and there have been some encouraging developments in Japan, whose
companies appear to be adopting a more shareholder-friendly approach.
Over the past six months, we maintained substantial exposure in the US where, at
period end, we held approximately two-thirds of the Fund's assets. We reduced
exposure to Continental Europe and increased exposure to Asia. Over the near
term, we will continue to rebuild our Japanese weighting at the expense of
Europe and, possibly, the US.
OUTLOOK
The Internet is driving a new and powerful wave of spending in information
technology. It is also heightening investor awareness of the technology industry
and its potential for wealth creation. Consequently, the past six months have
seen a further re-rating of technology shares and valuations now appear quite
full. With earnings deteriorating as we approach the second half of 1999, share
prices may be flat, with buying opportunities likely to emerge in the third
quarter. Over the longer term, we remain extremely optimistic about the outlook
for global technology.
46
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
COUNTRY ALLOCATION
APRIL 30, 1999
MSCI
WORLD
FUND INDEX
-------- --------
CONTINENTAL EUROPE .................... 14.94% 22.26%
Austria ........................... -- 0.15
Belgium ........................... -- 0.71
Denmark ........................... -- 0.36
Finland ........................... 1.79 0.80
France ............................ 4.62 4.29
Germany ........................... 1.36 4.54
Ireland ........................... -- 0.22
Italy ............................. 1.30 2.17
Luxembourg ........................ 1.19 --
Netherlands ....................... 3.45 2.81
Norway ............................ -- 0.20
Portugal .......................... -- 0.24
Spain ............................. -- 1.37
Sweden ............................ 0.72 1.06
Switzerland ....................... 0.51 3.34
JAPAN ................................. 7.27 10.78
PACIFIC ............................... 6.69 3.07
Australia ......................... 1.47 1.39
Hong Kong ......................... -- 1.17
New Zealand ....................... -- 0.10
Singapore ......................... 3.59 0.41
South Korea ....................... 0.67 --
Taiwan ............................ 0.96 --
UNITED KINGDOM ........................ 7.57 10.60
UNITED STATES ......................... 54.41 51.30
OTHER ................................. 6.27 1.99
Canada ............................ -- 1.99
Israel ............................ 6.27 --
OTHER ASSETS LESS LIABILITIES ......... 2.85 --
------ ------
TOTAL ................................. 100.00% 100.00%
====== ======
[THE FOLLOWING TABLE REPRESENTS A BAR GRAPH IN THE PRINTED PIECE.]
LARGEST INDUSTRIES
APRIL 30, 1999
Percent of
Net Assets
----------
COMPUTER SOFTWARE ......................... $207,237,487 23.9%
ELECTRONICS CAPITAL EQUIPMENT ............. $103,277,511 11.9%
ELECTRONICS ............................... $ 85,110,580 9.8%
COMPUTER HARDWARE PERIPHERALS ............. $ 84,723,248 9.8%
SEMI-CONDUCTORS ........................... $ 80,875,688 9.3%
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED PIECE.]
REGIONAL ALLOCATION
APRIL 30, 1999
United States 54.41%
Continental Europe 14.94%
United Kingdom 7.57%
Japan 7.27%
Pacific 6.69%
Other 6.27%
Other Assets Less Liabilities 2.85%
LARGEST PORTFOLIO HOLDINGS
APRIL 30, 1999
SECURITY VALUE
- ----------- -----------
Microsoft (US) ................................. $24,384,375
Orbotech (Israel) .............................. 19,350,000
DIIGroup (US) .................................. 18,637,500
Learning Company (US) .......................... 18,600,000
Synopsys (US) .................................. 17,789,062
Electronic Arts (US) ........................... 17,773,438
Check Point Software
Technologies (Israel) ........................ 17,562,500
Lattice Semiconductor (US) ..................... 17,425,000
Venture Manufacturing (Singapore) .............. 17,249,867
Koninklijke (Royal) Philips
Electronics (Netherlands) .................... 17,239,695
47
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED APRIL 30, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
------------------------------------------------------
CLASS B
SINCE SINCE
SIX ONE INCEPTION INCEPTION
MONTHS* YEAR 5/23/94 4/22/96
---------- ------- ------------ ------------
<S> <C> <C> <C> <C>
CLASS A**
With Sales Charge 28.38% 10.18% 24.15% n/a
Without Sales Charge 34.75 15.67 25.39 n/a
CLASS B**
With CDSC+ 29.36 9.83 n/a 18.46%
Without CDSC 34.36 14.83 n/a 19.16
CLASS D**
With 1% CDSC 33.34 13.78 n/a n/a
Without CDSC 34.34 14.78 24.37 n/a
LIPPER GLOBAL FUNDS AVERAGE*** 19.01 7.52 13.97++ 14.620
LIPPER SCIENCE &
TECHNOLOGY FUNDS AVERAGE*** 58.70 51.42 33.35++ 30.840
MSCI WORLD INDEX*** 19.78 16.37 17.30+++ 18.650
</TABLE>
NET ASSET VALUE
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1998
-------------- ----------------- --------------
CLASS A $16.62 $12.48 $14.83
CLASS B 15.90 11.98 14.31
CLASS D 15.87 11.96 14.29
CAPITAL GAIN INFORMATION
FOR THE SIX MONTHS ENDED APRIL 30, 1999
PAID $0.158
REALIZED 3.230
UNREALIZED 2.560oo
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 charge ("CDSC"), 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% CDSC, 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 (MSCI) World Index
are unmanaged benchmarks that assume reinvestment of dividends. The Lipper
Global Funds Average and the Lipper Science & Technology Funds 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 Funds Average are
used in the Performance and Portfolio Overview. Investors cannot invest
directly in an average or an index.
+ The CDSC is 5% for periods of one year or less, and 3% since inception.
++ From May 26, 1994.
+++ From May 31, 1994.
0 From April 30, 1996.
00 Represents the per share amount of net unrealized appreciation of portfolio
securities as of April 30, 1999.
48
<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
charge ("CDSC") for Class D shares, and assumes that all distributions are
invested in additional shares, since the commencement of operations on May 23,
1994, through April 30, 1999, 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 indices and averages exclude
the effect of fees and/or sales charges.
[THE FOLLOWING TABLE REPRESENTS A LINE CHART IN THE PRINTED PIECE.]
<TABLE>
<CAPTION>
Class A With Class A Without Class D Lipper Global Lipper Sci. &
With Sales Load Sales Charge Without CDSL MSCI World Index Funds Avg. Tech Fds. Avg.
--------------- ---------------- ------------ ---------------- ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
5/23/94 9520 10000 10000 10000 10000 10000
7/31/94 9613 10098 10084 10165 10089 9874
10/31/94 11160 11723 11681 10491 10427 11759
1/31/95 10695 11234 11150 9987 9611 11377
4/30/95 13264 13933 13821 10997 10343 13185
7/31/95 16856 17706 17523 11649 11312 16641
10/31/95 17556 18441 18216 11543 11163 17245
1/31/96 15895 16697 16458 12522 11897 16436
4/30/96 17535 18419 18119 13116 12653 18456
7/31/96 15004 15760 15477 12734 12236 16172
10/31/96 16269 17090 16745 13486 12944 18920
1/31/97 19981 20988 20535 14189 13903 21462
4/30/97 18571 19507 19055 14536 13908 18826
7/31/97 23634 24826 24204 16957 16146 24327
10/31/97 21779 22877 22241 15813 15191 23316
1/31/98 21113 22178 21506 16750 15559 22980
4/30/98 25170 26439 25588 18829 17722 27302
7/31/98 23753 24951 24093 19012 17476 26720
10/31/98 21606 22696 21863 18293 16012 26050
1/31/99 28887 30344 29184 20781 18027 39707
4/30/99 29115 30583 29369 21909 19056 41342
</TABLE>
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 48, 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, 1999
SHARES
--------------------------
HOLDINGS
ADDITIONS INCREASE 4/30/99
- ------------- ------------ ------------
American Power Conversion
(US) .......................... 450,000 450,000
Check Point Software
Technologies (Israel) ........... 300,000 500,000
Compuware (US) .................. 300,000 400,000(1)
Creative Technology
(Singapore) .................... 600,000 1,100,000
Fujitsu (Japan) ................. 400,000 400,000
Global TeleSystems Group
(US) ........................... 240,000 240,000
KLA-Tencor (US) ................. 59,400 300,000
Lattice Semiconductor (US) ...... 275,000 425,000
Novellus Systems (US) ........... 150,000 150,000
Rational Software (US) .......... 300,000 300,000
SHARES
---------------------------
HOLDINGS
REDUCTIONS DECREASE 4/30/99
- --------------- ------------- -------------
AT&T-Liberty Media
Group(2) (US) ................. 100,000 --
CMPMedia (Class A)(US) .......... 800,000 --
ECI Telecom (Israel) ............ 250,000 250,000
EMC(US) ......................... 500,000 --
General Electric (UK) ........... 1,035,000 --
Lexmark International Group
(Class A)(US) ................. 150,000 100,000
Maxim Integrated
Products (US) ................. 485,000 --
Network Associates (US) ......... 400,811 --
PLATINUM Technology (US) ........ 400,000 --
RM(UK) .......................... 1,400,000 --
Largest portfolio changes from the previous quarter to the current quarter 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) Formerly, Tele-Communications.
49
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- -----------
COMMON STOCKS 97.15%
AUSTRALIA 1.47%
COCHLEAR
Developer and marketer
of hearing aids (Medical
Products and Technology) 1,650,000 $12,712,800
-----------
FINLAND 1.79%
NOKIA
Developer and manufacturer
of cellular phones and
base stations
(Telecommunications) 201,400 15,539,131
-----------
FRANCE 4.62%
ALTRAN TECHNOLOGIES
Provider of consulting services
(Computer and Business Services) 33,000 7,853,051
ATOS*
Computer services provider
and systems integrator
(Computer and Business
Services) 49,000 4,197,813
RHONE-POULENC
Manufacturer of chemicals,
polymers, fibers, pharmaceuticals,
and agricultural chemicals
(Medical Products and
Technology) 210,000 9,994,792
STMICROELECTRONICS
Manufacturer of semiconductor
circuits for the automotive,
computer, and
telecommunications industries
(Electronics) 33,000 3,441,382
STMICROELECTRONICS (NY SHARES)
Manufacturer of semiconductor
circuits for the automotive,
computer, and
telecommunications industries
(Electronics) 70,000 7,140,000
UNILOG
Computer consultants
(Computer and
Business Services) 15,300 7,395,195
-----------
40,022,233
-----------
GERMANY 1.36%
MANNESMANN
Emerging communications
carrier (Machinery and
Equipment) 89,400 11,715,230
TELEGATE*
Provider of directory
assistance services
(Telecommunications) 1,000 45,267
-----------
11,760,497
-----------
ISRAEL 6.27%
CHECK POINT SOFTWARE TECHNOLOGIES*
Developer of network "firewall"
security systems
(Computer Software) 500,000 17,562,500
ECI TELECOM
Provider of digital
telecommunications and
data transmission systems
(Communications
Infrastructure) 250,000 9,195,312
ORBOTECH*
Manufacturer of automated
optical inspection systems
for circuit boards and
flat panel displays (Electronics
Capital Equipment) 400,000 19,350,000
TECNOMATIX TECHNOLOGIES*++
Developer and retailer of
computer-aided production
engineering software
(Computer Software) 550,000 8,198,438
-----------
54,306,250
-----------
ITALY 1.30%
TELECOM ITALIA
Provider of telecom-
munications services
(Telecommunications) 874,346 9,312,253
TELECOM ITALIA (RNC)
Provider of telecom-
munications services
(Telecommunications) 356,000 1,916,504
-----------
11,228,757
-----------
JAPAN 7.27%
CANON
Manufacturer of printers,
copiers, cameras, and video
equipment (Electronics) 300,000 7,341,295
FUJITSU
Provider of semiconductors,
computers, and
communications equipment
(Semiconductors) 400,000 6,855,227
HIROSE ELECTRONICS
Manufacturer of specialized
connectors (Electronics) 75,800 7,051,163
- -------------
See footnotes on page 54.
50
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- ------------
JAPAN (CONTINUED)
MIMASU SEMICONDUCTOR INDUSTRY
Wafer inspection devices
(Electronics Capital Equipment) 180,000 $ 3,001,885
MURATA MANUFACTURING
Manufacturer of capacitors
(Electronics) 200,000 11,447,727
RICOH
Manufacturer of office
equipment (Machinery and
Equipment) 310,000 2,987,639
ROHM
Producer of custom
linear integrated circuits
(Semiconductors) 55,000 6,637,335
SECOM
Provider of comprehensive
security services (Computer
and Business Services) 109,000 10,651,079
SHARP
Manufacturer of electronics
(Electronics) 600,000 7,039,598
-----------
63,012,948
-----------
LUXEMBOURG 1.19%
MILLICOM INTERNATIONAL CELLULAR*
Cellular services operator
(Telecommunications) 50,000 1,725,000
SBS BROADCASTING*
Television and radio
broadcaster (Media) 250,000 7,921,875
UNITED CUSTOMER MANAGEMENT
Provider of services for the
telecommunications industry
(Telecommunications) 7,600 676,400
-----------
10,323,275
-----------
NETHERLANDS 3.45%
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital
Equipment) 110,000 4,296,875
CMG
Information technology
consulting (Computer and
Business Services) 310,000 8,385,737
KONINKLIJKE (ROYAL)
PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) 200,000 17,239,695
-----------
29,922,307
-----------
SINGAPORE 3.59%
CREATIVE TECHNOLOGY
Provider of PCaudio and
graphics products
(Computer Hardware/
Peripherals) 1,100,000 $ 13,818,750
VENTURE MANUFACTURING
Contract manufacturer
for the electronics industry
(Electronics) 3,143,000 17,249,867
-----------
31,068,617
-----------
SOUTH KOREA 0.67%
SAEHAN PRECISION
Producer of deck
mechanisms used in
car stereos and compact
disc players (Electronics) 1,500 30,921
SAMSUNG ELECTRONICS (GDRS)
Manufacturer of consumer
electronics and semiconductors
(Electronics) 102,500 4,374,188
SAMSUNG ELECTRONICS (GDRS)
(1/2 NON-VOTING)*+
Manufacturer of consumer
electronics and semiconductors
(Electronics) 60,000 1,357,500
-----------
5,762,609
-----------
SWEDEN 0.72%
WM-DATA (SERIES B)
Provider of systems design and
development services for the
computer industry (Computer
and Business Services) 170,190 6,257,134
-----------
SWITZERLAND 0.51%
NOVARTIS
Manufacturer of
pharmaceuticals (Medical
Products and Technology) 3,000 4,394,660
-----------
TAIWAN 0.96%
SILICONWARE PRECISION
INDUSTRIES (GDRS)*
Packaging of electronic
components (Electronics
Capital Equipment) 620,000 6,897,500
YAGEO (GDRS)*
Manufacturer of passive
components (Electronics) 291,228 1,358,200
YAGEO (GDRS)*+
Manufacturer of passive
components (Electronics) 8,372 39,044
-----------
8,294,744
-----------
- ------------
See footnotes on page 54.
51
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- -----------
UNITED KINGDOM 7.57%
ACORN GROUP*
Supplier of information
technology (Computer
Hardware/Peripherals) 535,800 $ 2,218,878
ADMIRAL
Computer software and
services (Computer and
Business Services) 270,000 4,559,389
CABLE & WIRELESS
Provider of global
telecommunications services
(Telecommunications) 514,000 7,290,969
CELLTECH*
Pharmaceutical company
active in the development
and research of new
therapeutic products
(Medical Products and
Technology) 404,800 3,238,823
COLT TELECOM GROUP*
Provider of telecommunications
services (Telecommunications) 480,000 8,900,699
ILION GROUP++
Networking equipment
distributor (Distribution) 1,616,914 2,626,406
INVENSYS
Engineering company offering
services to the value-added
controls and automation
industry (Computer and
Business Services) 1,300,000 6,679,866
LINX PRINTING TECHNOLOGIES
Manufacturer of specialized
printers (Miscellaneous) 145,000 369,616
LOGICA
Supplier of computer
services (Computer
and Business Services) 805,000 7,716,062
MISYS
Provider of computer
services, and software
and hardware solutions
(Computer Software) 1,050,000 9,853,346
SPRING GROUP
Provider of training and
educational services
(Computer and Business
Services) 900,000 1,845,467
TOROTRAK*
Designer and developer of
automobile transmission
systems (Automotive and
Related) 585,000 1,143,104
VODAFONE GROUP
Cellular services operator
(Telecommunications) 501,758 9,183,117
----------------
65,625,742
----------------
UNITED STATES 54.41%
3DO*
Developer of entertainment
software (Computer Software) 500,000 3,265,625
ACTIVISION*
Developer of entertainment
software (Computer Software) 550,000 5,740,625
AMERICAN POWER CONVERSION*
Provider of back-up power
supply equipment for
computers (Computer
Hardware/Peripherals) 450,000 14,835,938
AMKOR TECHNOLOGY*
Provider of semiconductor
packaging and test services
(Semiconductors) 1,100,000 10,759,375
APEX PC SOLUTIONS*
Manufacturer of switching
systems for computer
network administrators
(Computer Hardware/
Peripherals) 500,000 8,406,250
APPLIED POWER (CLASS A)
Provider of tools and
equipment for the computer
and telecommunications
industries (Machinery and
Equipment) 200,000 6,312,500
ATMI*
Supplier of materials used in
the manufacture of
semiconductor devices
(Electronics Capital
Equipment) 100,000 2,318,750
AUTODESK
Developer of software for
architectural and mechanical
design, data management,
and mapping (Computer
Software) 350,000 10,390,625
BMC SOFTWARE*
Developer of mainframe
utility software
(Computer Software) 200,000 8,606,250
CADENCE DESIGN SYSTEMS*
Electronic design automation
software (Computer Software) 360,000 4,882,500
- ----------------
See footnotes on page 54.
52
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
C-CUBE MICROSYSTEMS*
Provider of digital video
compression and
decompression circuits and
systems (Semiconductors) 350,000 $ 7,940,625
CITRIX SYSTEMS*
Applications software supplier
(Computer Software) 100,000 4,253,125
COGNEX*
Manufacturer of machine
vision systems (Electronics
Capital Equipment) 300,000 8,709,375
COMDISCO
A leading computer hardware
leasing company (Computer
Hardware/Peripherals) 371,900 9,785,619
COMPUWARE*
Provider of mainframe software
and consulting services
(Computer Software) 400,000 9,737,500
CREDENCE SYSTEMS*
Manufacturer of automated
semiconductor test
equipment (Electronics
Capital Equipment) 200,000 5,143,750
DALLAS SEMICONDUCTOR
Manufacturer of mixed-signal
integrated circuits
(Semiconductors) 150,000 6,375,000
DII GROUP*
Provider of contract
manufacturing services
(Contract Manufacturing/
Circuit Boards) 600,000 18,637,500
DSP COMMUNICATIONS*
Developer of chipsets used in
wireless communication
handsets (Communications
Infrastructure) 300,000 8,175,000
ELECTRO SCIENTIFIC INDUSTRIES*
Manufacturer of memory circuit
repair systems and circuit board
drilling systems (Electronics
Capital Equipment) 250,000 9,554,688
ELECTRONIC ARTS*
Developer, marketer, and
distributor of entertainment
software (Computer Software) 350,000 17,773,438
ELECTRONICS FOR IMAGING*
Manufacturer of peripherals for
color printers and copiers
(Computer Hardware/
Peripherals) 350,000 16,548,438
GLOBAL TELESYSTEMS GROUP*
Provider of telecommunications
services (Telecommunications) 240,000 15,855,000
HNC SOFTWARE*
Developer and vendor of
software for mission-critical
decision applications
(Computer Software) 350,000 7,568,750
KLA-TENCOR*
Manufacturer of yield
management and process
monitoring for the
semiconductor industry
(Electronics Capital
Equipment) 300,000 14,850,000
LATTICE SEMICONDUCTOR*
Designer and manufacturer of
programmable logic devices
(Semiconductors) 425,000 17,425,000
LEARNING COMPANY*
Developer of education and
reference software for
the personal computer
(Computer Software) 600,000 18,600,000
LEVEL ONE COMMUNICATIONS*
Developer of semiconductors
used in data communications
applications (Semiconductors) 150,000 7,710,938
LEXMARK INTERNATIONAL
GROUP (CLASS A)*
Manufacturer of laser and
inkjet printers and cartridges
(Computer Hardware/
Peripherals) 100,000 12,350,000
MENTOR GRAPHICS*
Developer of integrated
circuit design software
(Computer Software) 300,000 3,646,875
MICROCHIP TECHNOLOGY*
Supplier of field-programmable
microcontrollers
(Semiconductors) 400,000 14,025,000
MICROSOFT*
Provider of personal computer
operating system and
application software products
(Computer Software) 300,000 24,384,375
NEOMAGIC*
Developer of graphics circuits
for notebook computers
(Semiconductors) 270,000 3,147,188
- --------------
See footnotes on page 54.
53
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- ---------------
UNITED STATES (CONTINUED)
NET PERCEPTIONS*
Provider of marketing tools
for Internet retailers
(Computer and Business
Services) 40,000 $ 1,053,750
NOVELL*
Provider of network
operating system software
(Computer Software) 317,500 7,054,452
NOVELLUS SYSTEMS*
Manufacturer of wafer
fabrication systems for the
disposition of thin films
(Electronics Capital
Equipment) 150,000 7,092,187
NTL*
Global provider of cable
television, Internet access,
and telephone services
(Telecommunications) 120,000 9,146,250
PARAMETRIC TECHNOLOGY*
Developer of mechanical
design software
(Computer Software) 500,000 6,484,375
PRI AUTOMATION*
Supplier of factory automation
systems for semiconductor
manufacturers (Electronics
Capital Equipment) 200,000 4,975,000
PSINET*
Provider of Internet access
services and related products
(Computer and Business
Services) 104,000 5,297,500
RATIONAL SOFTWARE*
Provider of applications
development and test software
(Computer Software) 300,000 8,906,250
SCI SYSTEMS*
Manufacturer of
electronic components
(Contract Manufacturing/
Circuit Boards) 225,000 8,564,062
SEAGATE TECHNOLOGY*
Manufacturer and marketer of
data storage systems for the
computer industry (Computer
and Business Services) 100,000 2,787,500
SECURITY DYNAMICS TECHNOLOGIES*
Provider of computer data
security software
(Computer Software) 200,000 4,362,500
SMART MODULAR TECHNOLOGIES*
Assembler of memory modules
(Contract Manufacturing/
Circuit Boards) 500,000 6,718,750
STORAGE TECHNOLOGY*
Manufacturer of tape- and
disk-based data storage
equipment (Computer
Hardware/Peripherals) 350,000 6,759,375
STRUCTURAL DYNAMICS RESEARCH*
Developer of mechanical
design software
(Computer Software) 420,000 8,176,875
SYNOPSYS*
Developer of integrated
circuit design software
(Computer Software) 375,000 17,789,062
TERADYNE*
Manufacturer of automated
semiconductor test equipment
(Electronics Capital Equipment) 200,000 9,437,500
VEECO INSTRUMENTS*
Ion beam etching and surface
measurement systems for disk
drive heads (Electronics
Capital Equipment) 200,000 7,650,000
ZEBRA TECHNOLOGIES (CLASS A)*
Manufacturer and distributor
of bar code printers and supplies
(Machinery and Equipment) 105,000 3,497,812
ZIFF-DAVIS*
Integrated media company
focused on computer and
Internet-related technology
(Media) 500,000 7,906,250
------------
471,375,072
------------
TOTAL INVESTMENTS 97.15%
(Cost $706,024,071) 841,606,776
OTHER ASSETS
LESS LIABILITIES 2.85% 24,653,862
------------
NET ASSETS 100.00% $866,260,638
============
- --------------
* 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.
54
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999
<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* .................................... $92,717,969 $53,824,654 $200,796,501 $547,529,504 $841,606,776
Preferred stocks .................................. -- 213,046 -- 2,097,090 --
Bonds ............................................. -- -- 152,867 -- --
------------- ------------- -------------- -------------- --------------
Total investments .................................... 92,717,969 54,037,700 200,949,368 549,626,594 841,606,776
Cash ................................................. -- 6,549,614 8,633,913 31,259,494 4,645,698
Receivable for dividends and interest ................ 274,801 109,233 393,875 2,414,683 441,738
Unrealized appreciation on forward
currency contracts ................................. 132,161 251 203,213 1,014,812 --
Receivable for Capital Stock sold .................... 52,954 205,712 216,138 205,488 1,677,121
Expenses prepaid to shareholder service agent ........ 36,929 41,245 75,472 311,607 320,852
Receivable for securities sold ....................... -- 2,566,238 2,543,827 28,639,484 31,346,741
Other ................................................ 19,714 18,449 9,912 29,360 38,835
------------- ------------- -------------- -------------- --------------
TOTAL ASSETS ......................................... 93,234,528 63,528,442 213,025,718 613,501,522 880,077,761
------------- ------------- -------------- -------------- --------------
LIABILITIES:
Payable to custodian ................................. 1,725,586 -- -- -- --
Payable for securities purchased ..................... 819,331 2,740,094 300,240 2,221,983 9,192,490
Payable for Capital Stock repurchased ................ 403,188 2,652,205 801,668 4,898,187 2,891,333
Unrealized depreciation on forward
currency contracts ................................. 1,804 89 -- -- 69,146
Accrued expenses and other ........................... 232,625 185,792 386,512 1,368,678 1,664,154
------------- ------------- -------------- -------------- --------------
TOTAL LIABILITIES .................................... 3,182,534 5,578,180 1,488,420 8,488,848 13,817,123
------------- ------------- -------------- -------------- --------------
NET ASSETS ........................................... $90,051,994 $57,950,262 $211,537,298 $605,012,674 $866,260,638
============= ============= ============== ============== ==============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................... $ 2,124 $ 4,274 $ 9,374 $ 15,960 $ 34,202
Class B ........................................... 554 2,521 2,582 12,694 4,852
Class D ........................................... 1,942 2,104 6,388 14,277 13,899
Additional paid-in capital ........................... 63,808,965 73,045,568 126,082,296 572,796,129 575,741,323
Accumulated net investment loss ...................... (368,018) (564,579) (1,012,186) (5,434,338) (5,888,324)
Undistributed/accumulated net realized gain
(loss) on investments .............................. 7,531,695 (22,569,692) 21,972,355 (4,246,397) 160,856,195
Net unrealized appreciation of investments ........... 21,530,601 9,871,361 67,985,699 50,429,617 145,003,540
Net unrealized depreciation on translation of
assets and liabilities denominated in foreign
currencies and forward currency contracts .......... (2,455,869) (1,841,295) (3,509,210) (8,575,268) (9,505,049)
------------- ------------- -------------- -------------- --------------
NET ASSETS ........................................... $90,051,994 $57,950,262 $211,537,298 $605,012,674 $866,260,638
============= ============= ============== ============== ==============
NET ASSETS:
Class A ........................................... $ 42,552,151 $ 28,142,211 $ 109,537,472 $ 232,117,293 $ 568,498,472
Class B ........................................... $ 10,556,590 $ 16,237,095 $ 29,352,691 $ 175,436,812 $ 77,135,605
Class D ........................................... $ 36,943,253 $ 13,570,956 $ 72,647,135 $ 197,458,569 $ 220,626,561
SHARES OF CAPITAL STOCK OUTSTANDING:
Class A ........................................... 2,123,663 4,273,672 9,374,201 15,960,126 34,201,721
Class B ........................................... 554,553 2,520,596 2,581,598 12,693,634 4,852,312
Class D ........................................... 1,941,582 2,104,405 6,388,241 14,277,517 13,899,224
NET ASSET VALUE PER SHARE:
CLASS A ........................................... $20.04 $6.59 $11.68 $14.54 $16.62
CLASS B ........................................... $19.04 $6.44 $11.37 $13.82 $15.90
CLASS D ........................................... $19.03 $6.45 $11.37 $13.83 $15.87
</TABLE>
- --------------
* Includes affiliated issuers (issuers in which a Series' holdings representing
5% or more of the outstanding voting securities) with cost of $495,856 and
$18,540,550, and value of $600,375 and $10,824,844, respectively, for the
Emerging Markets Growth Fund and the Global Technology Fund.
See Notes to Financial Statements.
55
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999
<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* ............................................ $ 656,987 $ 363,446 $ 816,886 $ 2,841,599 $ 1,592,843
Interest .............................................. 73,996 36,232 276,636 275,673 627,854
------------ ------------ ------------ ------------ -------------
Total Investment Income** ............................. 730,983 399,678 1,093,522 3,117,272 2,220,697
------------ ------------ ------------ ------------ -------------
EXPENSES:
Management fees ....................................... 466,907 321,238 1,003,722 3,841,258 4,154,498
Distribution and service fees ......................... 299,059 170,502 612,150 2,648,586 2,103,934
Shareholder account services .......................... 123,668 128,098 217,662 1,074,766 1,034,082
Custody and related services .......................... 57,411 45,331 71,535 267,157 204,045
Registration .......................................... 28,850 24,550 37,308 63,689 86,341
Auditing and legal fees ............................... 28,784 25,340 37,144 71,629 83,219
Shareholder reports and communications ................ 25,394 44,069 59,758 225,532 221,313
Directors' fees and expenses .......................... 6,576 5,524 6,277 14,967 13,439
Miscellaneous ......................................... 3,267 2,949 4,891 34,021 15,061
------------ ------------ ------------ ------------ -------------
TOTAL EXPENSES ........................................ 1,039,916 767,601 2,050,447 8,241,605 7,915,932
------------ ------------ ------------ ------------ -------------
NET INVESTMENT LOSS ................................... (308,933) (367,923) (956,925) (5,124,333) (5,695,235)
------------ ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain on investments ...................... 7,485,471 2,214,946 23,550,750 26,419,889 174,440,763
Net realized loss from foreign currency
transactions ........................................ (955,765) (2,091,223) (2,017,737) (12,905,078) (3,596,004)
Net change in unrealized appreciation/depreciation
of investments ...................................... 9,970,850 12,866,849 21,059,030 19,726,428 82,867,951
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts .......................... (4,567,874) 51,577 (3,438,033) (6,110,798) (6,903,286)
------------ ------------ ------------ ------------ -------------
NET GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS ....................... 11,932,682 13,042,149 39,154,010 27,130,441 246,809,424
------------ ------------ ------------ ------------ -------------
INCREASE IN NET ASSETS
FROM OPERATIONS ..................................... $11,623,749 $12,674,226 $38,197,085 $22,006,108 $241,114,189
============ ============ ============ ============ =============
- -----------------
*Includes dividend income from affiliated
issuers as follows: -- -- -- -- $ 26,583
**Net of foreign taxes withheld as follows: $79,114 $29,788 $54,016 $364,254 194,945
See Notes to Financial Statements.
</TABLE>
56
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<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
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
------------ ------------ ------------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ........................ $ (308,933) $ (270,130) $ (367,923) $ (463,122) $ (956,925) $ (1,634,977)
Net realized gain (loss) on investments .... 7,485,471 2,327,950 2,214,946 (17,519,924) 23,550,750 2,512,281
Net realized loss from foreign currency
transactions ............................. (955,765) (700,001) (2,091,223) (2,152,860) (2,017,737) (2,270,172)
Net change in unrealized appreciation/
depreciation of investments .............. 9,970,850 1,271,316 12,866,849 (5,035,191) 21,059,030 13,049,405
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency
contracts .... ........................... (4,567,874) 2,794,538 51,577 370,569 (3,438,033) 3,910,046
------------ ------------ ------------ ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................... 11,623,749 5,423,673 12,674,226 (24,800,528) 38,197,085 15,566,583
------------ ------------ ------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A .................................. -- (3,073,832) -- -- -- (4,861,075)
Class B .................................. -- (442,506) -- -- -- (875,292)
Class D .................................. -- (2,927,252) -- -- -- (2,900,851)
------------ ------------ ------------ ------------- ------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS .. -- (6,443,590) -- -- -- (8,637,218)
------------ ------------ ------------ ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A .................................. 15,166,077 20,944,419 5,590,828 9,097,908 3,232,624 7,080,116
Class B .................................. 534,961 4,648,002 725,103 3,958,564 1,839,820 4,937,582
Class D .................................. 1,971,506 6,404,661 636,510 3,323,782 2,071,153 6,765,527
Exchanged from associated Funds:
Class A .................................. 51,160,856 51,542,834 44,566,645 19,937,244 42,361,528 29,284,180
Class B .................................. 786,395 5,569,000 646,152 477,703 4,531,338 3,543,331
Class D .................................. 15,709,554 31,181,338 2,082,515 2,593,655 6,898,214 12,674,214
Shares issued in payment of gain
distributions:
Class A .................................. -- 2,644,650 -- -- -- 4,427,520
Class B .................................. -- 416,868 -- -- -- 752,541
Class D .................................. -- 2,517,142 -- -- -- 2,635,591
------------ ------------ ------------ ------------- ------------- -------------
Total ...................................... 85,329,349 125,868,914 54,247,753 39,388,856 60,934,677 72,100,602
------------ ------------ ------------ ------------- ------------- -------------
Cost of shares repurchased:
Class A .................................. (23,431,443) (24,740,448) (6,364,744) (12,803,905) (12,059,399) (26,372,863)
Class B .................................. (818,520) (999,582) (2,555,713) (4,804,465) (2,126,982) (3,664,340)
Class D .................................. (5,370,530) (9,945,313) (2,833,202) (6,863,680) (9,129,467) (15,267,156)
Exchanged into associated Funds:
Class A .................................. (50,283,165) (52,470,373) (46,080,407) (25,474,706) (42,246,577) (30,358,305)
Class B .................................. (988,921) (5,611,693) (2,206,023) (4,852,353) (1,574,429) (3,263,092)
Class D .................................. (17,449,857) (33,074,289) (2,923,893) (9,935,797) (4,777,982) (8,455,082)
------------ ------------ ------------ ------------- ------------- -------------
Total ...................................... (98,342,436) (126,841,698) (62,963,982) (64,734,906) (71,914,836) (87,380,838)
------------ ------------ ------------ ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS ............... (13,013,087) (972,784) (8,716,229) (25,346,050) (10,980,159) (15,280,236)
------------ ------------ ------------ ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS .......... (1,389,338) (1,992,701) 3,957,997 (50,146,578) 27,216,926 (8,350,871)
NET ASSETS:
Beginning of period ........................ 91,441,332 93,434,033 53,992,265 104,138,843 184,320,372 192,671,243
------------ ------------ ------------ ------------- ------------- -------------
END OF PERIOD .............................. $ 90,051,994 $ 91,441,332 $57,950,262 $ 53,992,265 $211,537,298 $184,320,372
============ ============ ============ ============= ============= =============
</TABLE>
- ----------
See Notes to Financial Statements.
57
<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
4/30/99 10/31/98 4/30/99 10/31/98
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ........................... $ (5,124,333) $ (9,051,588) $ (5,695,235) $ (10,680,516)
Net realized gain on investments .............. 26,419,889 142,339 174,440,763 47,415,066
Net realized loss from foreign
currency transactions ....................... (12,905,078) (16,429,116) (3,596,004) (858,280)
Net change in unrealized appreciation/
depreciation of investments ................. 19,726,428 (51,038,110) 82,867,951 (44,894,952)
Net change in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign
currencies and forward currency contracts ... (6,110,798) 19,214,602 (6,903,286) 5,026,539
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS .................................. 22,006,108 (57,161,873) 241,114,189 (3,992,143)
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A ..................................... -- (17,124,087) (5,912,986) (99,536,281)
Class B ..................................... -- (10,275,288) (770,120) (9,666,516)
Class D ..................................... -- (15,357,547) (2,408,600) (41,021,514)
--------------- --------------- --------------- ---------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS ..... -- (42,756,922) (9,091,706) (150,224,311)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
Class A ..................................... 34,700,600 152,853,507 23,628,475 56,563,795
Class B ..................................... 5,573,753 43,401,281 4,148,030 15,204,426
Class D ..................................... 6,865,978 39,263,963 3,771,632 15,269,385
Exchanged from associated Funds:
Class A ..................................... 119,184,788 230,629,818 220,711,606 198,014,893
Class B ..................................... 1,621,653 5,918,063 3,913,469 4,387,134
Class D ..................................... 3,406,178 42,068,010 44,109,915 121,982,389
Shares issued in payment of gain distributions:
Class A ..................................... -- 15,984,486 5,536,720 93,006,394
Class B ..................................... -- 9,575,151 713,799 8,897,918
Class D ..................................... -- 14,283,328 2,265,491 38,405,363
--------------- --------------- --------------- ---------------
Total ......................................... 171,352,950 553,977,607 308,799,137 551,731,697
--------------- --------------- --------------- ---------------
Cost of shares repurchased:
Class A ..................................... (164,631,365) (175,015,238) (79,884,859) (137,745,943)
Class B ..................................... (32,661,234) (29,719,894) (6,045,576) (6,421,499)
Class D ..................................... (68,272,595) (89,449,184) (29,510,654) (47,125,132)
Exchanged into associated Funds:
Class A ..................................... (142,448,334) (247,200,113) (231,699,644) (216,262,283)
Class B ..................................... (27,000,836) (26,278,385) (3,236,009) (5,472,802)
Class D ..................................... (23,709,874) (68,639,834) (42,742,706) (135,114,189)
--------------- --------------- --------------- ---------------
Total ......................................... (458,724,238) (636,302,648) (393,119,448) (548,141,848)
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS .................. (287,371,288) (82,325,041) (84,320,311) 3,589,849
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS ............. (265,365,180) (182,243,836) 147,702,172 (150,626,605)
NET ASSETS:
Beginning of period ........................... 870,377,854 1,052,621,694 718,558,466 869,185,071
--------------- --------------- --------------- ---------------
END OF PERIOD ................................. $ 605,012,674 $ 870,377,858 $ 866,260,638 $ 718,558,466
=============== =============== =============== ===============
</TABLE>
- ----------------
See Notes to Financial Statements.
58
<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 charge ("CDSC") 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 CDSC, 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 CDSC, 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 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.
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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,
1999, were as follows:
SERIES PURCHASES SALES
- ------------------ ------------- -------------
International Fund $ 37,203,926 $ 40,970,685
Emerging Markets
Growth Fund 29,436,468 39,588,246
Global Growth
Opportunities Fund 65,768,487 74,304,475
Global Smaller
Companies Fund 238,154,478 502,341,879
Global Technology Fund 403,294,710 482,600,303
At April 30, 1999, each Series' cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes, and the tax basis gross unrealized appreciation and depreciation of
portfolio securities, including the effects of foreign currency translations,
were as follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
SERIES APPRECIATION DEPRECIATION
- ------------------ -------------- -------------
International Fund $ 19,758,001 $ 811,233
Emerging Markets
Growth Fund 10,475,771 2,409,610
Global Growth
Opportunities Fund 66,587,630 2,291,386
Global Smaller
Companies Fund 108,165,485 67,249,247
Global Technology Fund 192,630,595 57,047,890
4. MANAGEMENT FEE, DISTRIBUTION 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. The Manager
receives a fee, calculated daily and
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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.
Effective July 1, 1998, Henderson Investment Management Limited (the
"Subadviser"), became subadviser to theFund and is responsible for furnishing
investment advice, research, and assistance with respect to the Fund's
international investments. Under the subadvisory agreement, the Manager pays the
Subadviser a subadvisory fee for each Series at a rate equal to a percentage of
the average monthly assets under the Subadviser's supervision. The subadvisory
fee rate percentage is 0.90% per annum through June 30, 1999; 0.70% per annum
from July 1, 1999, through June 30, 2000; and 0.50% per annum thereafter. The
Subadviser is a wholly-owned subsidiary of Henderson plc, which is an indirect
subsidiary of AMP Limited, an Australian life insurance and financial services
company.
Compensation of all officers of the Fund, all directors of the Fund who are
employees or consultants of the Manager, and all personnel of the Fund and the
Manager is paid by the Manager or by Henderson plc.
Seligman Advisors, 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 $ 3,678 $ 28,893
Emerging Markets
Growth Fund 2,239 16,523
Global Growth
Opportunities Fund 7,840 60,874
Global Smaller
Companies Fund 18,971 146,196
Global Technology Fund 30,722 250,996
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, 1999, 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 $54,734,
$30,139, $134,746, $397,446, and $689,091, respectively, or 0.25% per annum of
the average daily net assets of each Series' 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 this fee to a third
party (the "Purchaser"), which provides funding to the Distributor to enable it
to pay commissions to dealers at the time of the sale of the related Class B
shares.
For the six months ended April 30, 1999, 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 $ 51,643 $ 192,682
Emerging Markets
Growth Fund 76,438 63,925
Global Growth
Opportunities Fund 129,028 348,376
Global Smaller
Companies Fund 1,028,246 1,222,894
Global Technology Fund 350,283 1,064,560
The Distributor is entitled to retain any CDSC 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, 1999, such charges were as follows:
SERIES AMOUNT
- ----------------------- -------------
International Fund $ 4,863
Emerging Markets Growth Fund 2,064
Global Growth Opportunities Fund 7,392
Global Smaller Companies Fund 43,054
Global Technology Fund 11,754
The Distributor has sold its rights to collect any CDSC imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSC and the distribution fees with respect to Class B
shares described above, the Distributor receives payments
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS
from the Purchaser based on the value of Class B shares sold. The aggregate
amounts of such payments retained by the Distributor for the six months ended
April 30, 1999, were as follows:
SERIES AMOUNT
- --------------------------- -------------
International Fund $ 763
Emerging Markets Growth Fund 1,003
Global Growth Opportunities Fund 2,498
Global Smaller Companies Fund 7,941
Global Technology Fund 6,202
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, 1999,
Seligman Services, Inc. received commissions from the sale of shares of each
Series and distribution and service fees, pursuant to the Plan, as follows:
DISTRIBUTION
SERIES COMMISSIONS AND SERVICE FEES
- --------------------------- -------------- -----------------
International Fund $ -- $ 9,803
Emerging Markets
Growth Fund 255 2,081
Global Growth
Opportunities Fund 375 5,141
Global Smaller
Companies Fund 2,269 18,606
Global Technology Fund 7,071 45,280
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 $ 123,668
Emerging Markets Growth Fund 128,098
Global Growth Opportunities Fund 217,662
Global Smaller Companies Fund 1,074,766
Global Technology Fund 1,034,082
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 annual cost of such fees and
earnings accrued thereon is included in directors' fees and expenses, and the
accumulated balances thereof at April 30, 1999, are included in other
liabilities, as follows:
SERIES AMOUNT
- ----------------------- -----------
International Fund $14,561
Emerging Markets GrowthFund 2,434
Global Growth Opportunities Fund 4,287
Global Smaller Companies Fund 14,402
Global Technology Fund 10,445
5. COMMITTED LINE OF CREDIT -- The Fund is a participant in a joint $800 million
committed line of credit that is shared by substantially all funds in the
Seligman Group of Investment Companies. The Fund's borrowings are limited to 5%
of its net assets. Borrowings pursuant to the credit facility are subject to
interest at a rate equal to the overnight federal funds rate plus 0.50%. The
Fund incurs a commitment fee of 0.80% per annum on its share of 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.
During the six-month period ended April 30, 1999, the Global Smaller
Companies Fund periodically borrowed from the credit facility. The average
outstanding daily balance of the bank loans (based on the number of days the
loans were outstanding) was $11,145,000, with a weighted interest rate of 5.24%.
The maximum borrowing outstanding during the period was $17,400,000.
6. CAPITAL LOSS CARRYFORWARD -- At October 31, 1998, the Emerging Markets Growth
Fund, the Global Growth Opportunities Fund, and the Global Smaller Companies
Fund had net capital loss carryforwards for federal income tax purposes of
$23,269,538, $1,139,976, and $22,271,988, respectively, which are available for
offsets against future taxable net capital gains, expiring in various amounts
through 2006. Accordingly, no capital gain distributions are expected to be paid
to shareholders of the above Series until net capital gains have been realized
in excess of the available capital loss carryforwards.
62
<PAGE>
NOTES TO FINANCIAL STATEMENTS
7. AFFILIATED ISSUERS -- As defined under the Investment Company Act of 1940, as
amended, affiliated issuers are those issuers in which a Series' holdings
represent 5% or more of the outstanding voting securities of the issuer. A
summary of the Fund's transactions in the securities of these issuers during the
six months ended April 30, 1999, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS SALES
BEGINNING PURCHASES AND ENDING REALIZED DIVIDEND ENDING
AFFILIATE SHARES ANDADDITIONS REDUCTIONS SHARES GAIN (LOSS) INCOME VALUE
- ----------- ----------------------------- -------------- --------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
EMERGING MARKETS
GROWTH FUND
Haci Omer Sabanci Holding -- 21,900,000 -- 21,900,000 -- -- $ 600,375
===========
GLOBAL TECHNOLOGY FUND
Ilion Group 1,616,914 -- -- 1,616,914 -- $26,583 $ 2,626,406
Tecnomatix Technologies 500,000 50,000 -- 550,000 -- -- 8,198,438
-------- --------- -----------
-- $26,583 $10,824,844
======== ========= ===========
</TABLE>
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. At
April 30, 1999, 400,000,000 shares were authorized for each Series of the 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
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares:
Class A ................................ 788,540 1,132,123 970,342 1,325,518 295,407 701,595
Class B ................................ 29,264 250,816 132,979 570,569 175,118 498,253
Class D ................................ 109,113 355,632 116,767 486,492 193,959 682,270
Exchanged from associated Funds:
Class A ................................ 2,689,181 2,810,206 7,923,495 3,141,179 3,831,825 2,882,396
Class B ................................ 43,092 297,215 116,867 72,054 420,132 358,767
Class D ................................ 863,886 1,774,064 374,039 406,998 636,112 1,270,285
Shares issued in payment of gain
distributions:
Class A ................................ -- 162,848 -- -- -- 500,843
Class B ................................ -- 26,671 -- -- -- 86,294
Class D ................................ -- 161,046 -- -- -- 302,772
---------- ---------- ---------- ---------- ---------- ----------
Total ..................................... 4,523,076 6,970,621 9,634,489 6,002,810 5,552,553 7,283,475
---------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A ................................ (1,210,608) (1,349,489) (1,115,609) (1,916,244) (1,098,064) (2,727,222)
Class B ................................ (44,812) (58,028) (469,243) (720,647) (198,834) (387,874)
Class D ................................ (293,618) (568,487) (524,122) (1,033,695) (852,306) (1,596,162)
Exchanged into associated Funds:
Class A ................................ (2,628,610) (2,842,925) (8,193,282) (3,863,525) (3,832,427) (3,027,589)
Class B ................................ (53,872) (302,774) (410,759) (737,349) (148,452) (352,291)
Class D ................................ (952,566) (1,875,479) (545,841) (1,478,158) (446,194) (895,935)
---------- ---------- ---------- ---------- ---------- ----------
Total ..................................... (5,184,086) (6,997,182) (11,258,856) (9,749,618) (6,576,277) (8,987,073)
---------- ---------- ---------- ---------- ---------- ----------
Decrease in shares ........................ (661,010) (26,561) (1,624,367) (3,746,808) (1,023,724) (1,703,598)
========== ========== ========== ========== ========== ==========
</TABLE>
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL TECHNOLOGY
COMPANIES FUND FUND
-------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/99 10/31/98 4/30/99 10/31/98
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Sale of shares:
Class A .............................. 2,412,639 10,022,623 1,506,857 4,176,254
Class B .............................. 402,790 2,848,299 279,556 1,176,951
Class D .............................. 496,434 2,596,605 257,510 1,189,506
Exchanged from associated Funds:
Class A .............................. 8,335,656 14,424,445 14,343,618 15,149,055
Class B .............................. 116,602 401,071 259,999 357,448
Class D .............................. 245,915 2,673,250 3,015,870 9,576,218
Shares issued in payment of gain
distributions:
Class A .............................. -- 1,085,903 415,356 7,189,429
Class B .............................. -- 677,168 55,809 710,545
Class D .............................. -- 1,009,423 177,407 3,070,660
----------- ----------- ----------- -----------
Total ................................... 12,010,036 35,738,787 20,311,982 42,596,066
----------- ----------- ----------- -----------
Shares repurchased:
Class A .............................. (11,443,807) (11,356,046) (5,220,922) (10,448,450)
Class B .............................. (2,381,186) (2,026,859) (414,069) (513,317)
Class D .............................. (4,995,592) (6,095,959) (2,019,879) (3,753,667)
Exchanged into associated Funds:
Class A .............................. (9,916,778) (15,405,894) (14,990,359) (16,445,590)
Class B .............................. (1,975,546) (1,836,699) (218,194) (442,471)
Class D .............................. (1,742,219) (4,534,421) (2,914,309) (10,505,019)
----------- ----------- ----------- -----------
Total ................................... (32,455,128) (41,255,878) (25,777,732) (42,108,514)
----------- ----------- ----------- -----------
Increase (decrease) in shares ........... (20,445,092) (5,517,091) (5,465,750) 487,552
=========== =========== =========== ===========
</TABLE>
64
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS -- At April 30, 1999, 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 476,680 768,170 5/4/99 766,521 $ (1,549)
Japanese yen 6,289,622 52,965 5/6/99 52,710 (255)
-----------
$ (1,804)
===========
Sales:
Japanese yen 280,000,000 2,477,613 5/12/99 2,345,452 $ 132,161
===========
EMERGING MARKETS GROWTH FUND
Sales:
Greek drachma 13,259,655 42,981 5/4/99 43,070 $ (89)
SouthAfrican rand 1,085,773 178,979 5/4/99 178,728 251
-----------
$ 162
===========
GLOBAL GROWTH OPPORTUNITIES FUND
Sales:
Swedish kronor 246,140 29,443 5/3/99 29,192 $ 251
Japanese yen 430,000,000 3,804,906 5/12/99 3,601,944 202,962
-----------
$ 203,213
===========
GLOBAL SMALLER COMPANIES FUND
Sales:
Japanese yen 2,150,000,000 19,024,528 5/12/99 18,009,716 $1,014,812
==========
GLOBAL TECHNOLOGY FUND
Sales:
Japanese yen 2,380,000,000 20,000,000 6/30/99 20,069,146 $ (69,146)
==========
</TABLE>
65
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand the financial
performance of each Class of each Series for the past five and one-half years or
from its inception if less than five and one-half years. Certain information
reflects financial results for a single share of a Class that was held
throughout the periods shown. Per share amounts are calculated using average
shares outstanding. "Total return" shows the rate that you would have earned (or
lost) on an investment in each Class, assuming you reinvested all your dividend
and capital gain distributions. Total returns do not reflect any sales charges,
and are not annualized for periods of less than one year.
INTERNATIONAL FUND
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX
MONTHS YEAR ENDED OCTOBER 31,
ENDED ---------------------------------------------------
4/30/99 1998 1997 1996 1995 1994
--------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $17.75 $17.92 $17.17 $16.71 $17.67 $15.98
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......................... (0.03) 0.03 (0.04) 0.05 0.06 0.04
Net realized and unrealized gain (loss)
on investments ........................................ 3.42 0.62 2.47 1.77 (0.42) 0.91
Net realized and unrealized gain (loss)
from foreign currency transactions .................... (1.10) 0.40 (0.79) (0.44) 0.09 1.08
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ...................... 2.29 1.05 1.64 1.38 (0.27) 2.03
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. -- -- -- -- -- (0.01)
Distributions from net realized capital gain .......... -- (1.22) (0.89) (0.92) (0.69) (0.33)
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS ................................... -- (1.22) (0.89) (0.92) (0.69) (0.34)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ........................ $20.04 $17.75 $17.92 $17.17 $16.71 $17.67
======= ======= ======= ======= ======= =======
TOTAL RETURN: 12.90% 6.51% 9.83% 8.43% (1.24)% 12.85%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $42,552 $44,122 $46,107 $50,998 $48,763 $62,922
Ratio of expenses to average net assets ............... 1.84%+ 1.69% 1.78% 1.81% 1.69% 1.63%
Ratio of net income (loss) to average net assets ...... (0.27)%+ 0.16% (0.23)% 0.28% 0.35% 0.27%
Portfolio turnover rate ............................... 40.87% 81.37% 83.11% 55.71% 60.70% 39.59%
</TABLE>
- ------------------
See footnotes on page 73.
66
<PAGE>
FINANCIAL HIGHLIGHTS
INTERNATIONAL FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------
SIX
MONTHS YEAR ENDED 4/22/96*
ENDED OCTOBER 31, TO
4/30/99 1998 1997 10/31/96
--------- ----- ----- ----------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .......... $16.93 17.30 $16.74 $17.38
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................... (0.09) (0.12) (0.18) (0.03)
Net realized and unrealized gain (loss)
on investments ................................ 3.30 0.57 2.42 (0.54)
Net realized and unrealized gain (loss)
from foreign currency transactions ............ (1.10) 0.40 (0.79) (0.07)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS .............. 2.11 0.85 1.45 (0.64)
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... -- -- -- --
Distributions from net realized capital gain .. -- (1.22) (0.89) --
------- ------- ------- -------
TOTAL DISTRIBUTIONS ........................... -- (1.22) (0.89) --
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ................ $19.04 $16.93 $17.30 $16.74
======= ======= ======= =======
TOTAL RETURN: ................................. 12.46% 5.51% 8.90% (3.68)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ...... $10,557 $9,835 $6,350 $2,843
Ratio of expenses to average net assets ....... 2.59%+ 2.55% 2.58% 2.66%+
Ratio of net loss to average net assets ....... (1.02)%+ (0.70)% (1.03)% (0.35)%+
Portfolio turnover rate ....................... 40.87% 81.37% 83.11% 55.71%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-----------------------------------------------------------------------
SIX
MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
4/30/99 1998 1997 1996 1995 1994
--------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ................... $16.93 $17.30 $16.74 $16.43 $17.53 $15.96
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss .................................... (0.09) (0.12) (0.18) (0.08) (0.07) (0.09)
Net realized and unrealized gain (loss)
on investments ......................................... 3.29 0.57 2.42 1.75 (0.43) 0.91
Net realized and unrealized gain (loss)
from foreign currency transactions ..................... (1.10) 0.40 (0.79) (0.44) 0.09 1.08
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ....................... 2.10 0.85 1.45 1.23 (0.41) 1.90
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ................... -- -- -- -- -- --
Distributions from net realized capital gain ........... -- (1.22) (0.89) (0.92) (0.69) (0.33)
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS .................................... -- (1.22) (0.89) (0.92) (0.69) (0.33)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ......................... $19.03 $16.93 $17.30 $16.74 $16.43 $17.53
======= ======= ======= ======= ======= =======
TOTAL RETURN: .......................................... 12.41% 5.51% 8.90% 7.62% (2.08)% 12.03%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ............... $36,943 $37,485 $40,977 $47,917 $31,273 $19,903
Ratio of expenses to average net assets ................ 2.59%+ 2.55% 2.58% 2.64% 2.50% 2.50%
Ratio of net loss to average net assets ................ (1.02)%+ (0.70)% (1.03)% (0.47)% (0.44)% (0.53)%
Portfolio turnover rate ................................ 40.87% 81.37% 83.11% 55.71% 60.70% 39.59%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets .............. 2.62% 2.67%
Ratio of net loss to average net assets .............. (0.56)% (0.70)%
</TABLE>
- -----------------
See footnotes on page 73.
67
<PAGE>
FINANCIAL HIGHLIGHTS
EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------
SIX
MONTHS YEAR ENDED 5/28/96*
ENDED OCTOBER 31, TO
-----------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $5.18 $7.34 $6.78 $7.14
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.03) (0.01) (0.05) (0.02)
Net realized and unrealized gain (loss)
on investments .......................................... 1.66 (2.00) 1.05 (0.25)
Net realized and unrealized loss
from foreign currency transactions ...................... (0.22) (0.15) (0.44) (0.09)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 1.41 (2.16) 0.56 (0.36)
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- --
Distributions from net realized capital gain ............ -- -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ..................................... -- -- -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .......................... $6.59 $5.18 $7.34 $6.78
====== ====== ====== ======
TOTAL RETURN: ........................................... 27.22% (29.43)% 8.26% (5.04)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $28,142 $24,294 $44,061 $19,864
Ratio of expenses to average net assets ................. 2.58%+ 2.22% 2.27% 2.22%+
Ratio of net loss to average net assets ................. (1.02)%+ (0.12)% (0.56)% (0.69)%+
Portfolio turnover rate ................................. 58.79% 94.09% 84.09% 12.24%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets ............... 3.02%+
Ratio of net loss to average net assets ............... (1.49)%+
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------
SIX
MONTHS YEAR ENDED 5/28/96*
ENDED OCTOBER 31, TO
-----------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $5.09 $7.27 $6.76 $7.14
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.05) (0.06) (0.11) (0.04)
Net realized and unrealized gain (loss)
on investments .......................................... 1.62 (1.97) 1.06 (0.25)
Net realized and unrealized loss
from foreign currency transactions ...................... (0.22) (0.15) (0.44) (0.09)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 1.35 (2.18) 0.51 (0.38)
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- --
Distributions from net realized capital gain ............ -- -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ..................................... -- -- -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .......................... $6.44 $5.09 $7.27 $6.76
====== ====== ====== ======
TOTAL RETURN: ........................................... 26.52% (29.99)% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $16,237 $16,031 $28,819 $10,541
Ratio of expenses to average net assets ................. 3.33%+ 2.99% 3.04% 3.00%+
Ratio of net loss to average net assets ................. (1.77)%+ (0.89)% (1.33)% (1.47)%+
Portfolio turnover rate ................................. 58.79% 94.09% 84.09% 12.24%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets ............... 3.80%+
Ratio of net loss to average net assets ............... (2.27)%+
</TABLE>
- -----------------
See footnotes on page 73.
68
<PAGE>
FINANCIAL HIGHLIGHTS
EMERGING MARKETS GROWTH FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS D
---------------------------------------------
SIX
MONTHS YEAR ENDED 5/28/96*
ENDED OCTOBER 31, TO
----------------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ..................... $5.09 $7.27 $6.76 $7.14
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ...................................... (0.05) (0.06) (0.11) (0.04)
Net realized and unrealized gain (loss)
on investments ........................................... 1.63 (1.97) 1.06 (0.25)
Net realized and unrealized loss
from foreign currency transactions ....................... (0.22) (0.15) (0.44) (0.09)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ......................... 1.36 (2.18) 0.51 (0.38)
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................... -- -- -- --
Distributions from net realized capital gain ............. -- -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ...................................... -- -- -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ........................... $6.45 $5.09 $7.27 $6.76
====== ====== ====== ======
TOTAL RETURN: ............................................ 26.72% (29.99)% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................. $13,571 $13,667 $31,259 $13,664
Ratio of expenses to average net assets .................. 3.33%+ 2.99% 3.04% 3.00%+
Ratio of net loss to average net assets .................. (1.77)%+ (0.89)% (1.33)% (1.47)%+
Portfolio turnover rate .................................. 58.79% 94.09% 84.09% 12.24%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets ................ 3.80%+
Ratio of net loss to average net assets ................ (2.27)%+
</TABLE>
GLOBAL GROWTH OPPORTUNITIES FUND
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------
SIX
MONTHS YEAR ENDED 11/1/95*
ENDED OCTOBER 31, TO
---------------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 9.62 $9.20 $8.08 $7.14
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ...................................... (0.03) (0.05) (0.05) (0.03)
Net realized and unrealized gain
on investments ........................................... 2.38 0.81 1.47 1.12
Net realized and unrealized gain (loss)
from foreign currency transactions ....................... (0.29) 0.08 (0.30) (0.15)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ......................... 2.06 0.84 1.12 0.94
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................... -- -- -- --
Distributions from net realized capital gain ............. -- (0.42) -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ...................................... -- (0.42) -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ........................... $11.68 $9.62 $9.20 $8.08
====== ====== ====== ======
TOTAL RETURN: ............................................ 21.41% 9.52% 13.86% 13.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................. $109,537 $97,947 $109,060 $107,509
Ratio of expenses to average net assets .................. 1.69%+ 1.68% 1.69% 1.91%
Ratio of net loss to average net assets .................. (0.59)%+ (0.48)% (0.59)% (0.53)%
Portfolio turnover rate .................................. 34.87% 45.43% 79.32% 31.44%
</TABLE>
- ----------------
See footnotes on page 73.
69
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL GROWTH OPPORTUNITIES FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------
SIX
MONTHS YEAR ENDED 4/22/96*
ENDED OCTOBER 31, TO
----------------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ................... $ 9.40 $9.06 $8.02 $8.04
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss .................................... (0.07) (0.12) (0.12) (0.04)
Net realized and unrealized gain
on investments ......................................... 2.33 0.80 1.46 0.06
Net realized and unrealized gain (loss)
from foreign currency transactions ..................... (0.29) 0.08 (0.30) (0.04)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ....................... 1.97 0.76 1.04 (0.02)
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income ................... -- -- -- --
Distributions from net realized capital gain ........... -- (0.42) -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS .................................... -- (0.42) -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ......................... $11.37 $9.40 $9.06 $8.02
====== ====== ====== ======
20.96% 8.76% 12.97% (0.25)%
TOTAL RETURN
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ............... $29,353 $21,930 $19,311 $9,257
Ratio of expenses to average net assets ................ 2.44%+ 2.44% 2.45% 2.53%+
Ratio of net loss to average net assets ................ (1.34)%+ (1.24)% (1.35)% (1.13)%+
Portfolio turnover rate ................................ 34.87% 45.43% 79.32% 31.44%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
--------------------------------------------
SIX
MONTHS YEAR ENDED 11/1/95*
-----------
ENDED OCTOBER 31, TO
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 9.40 $9.06 $8.02 $7.14
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.07) (0.12) (0.12) (0.09)
Net realized and unrealized gain (loss)
on investments .......................................... 2.33 0.80 1.46 1.12
Net realized and unrealized gain
from foreign currency transactions ...................... (0.29) 0.08 (0.30) (0.15)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 1.97 0.76 1.04 0.88
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- --
Distributions from net realized capital gain ............ -- (0.42) -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ..................................... -- (0.42) -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .......................... $11.37 $9.40 $9.06 $8.02
====== ====== ====== ======
TOTAL RETURN: ........................................... 20.96% 8.76% 12.97% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $72,647 $64,443 $64,300 $53,540
Ratio of expenses to average net assets ................. 2.44%+ 2.44% 2.45% 2.67%
Ratio of net loss to average net assets ................. (1.34)%+ (1.24)% (1.35)% (1.25)%
Portfolio turnover rate ................................. 34.87% 45.43% 79.32% 31.44%
</TABLE>
- --------------
See footnotes on page 73.
70
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL SMALLER COMPANIES FUND
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED OCTOBER 31,
---------------------------------------------------
4/30/99 1998 1997 1996 1995 1994
--------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $14.11 $15.62 $15.14 $13.90 $11.93 $9.98
------ ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................ (0.06) (0.07) -- -- (0.02) (0.08)
Net realized and unrealized gain (loss)
on investments .......................................... 0.84 (0.85) 1.61 2.38 2.24 1.57
Net realized and unrealized gain (loss)
from foreign currency transactions ...................... (0.35) 0.04 (0.40) (0.18) 0.08 0.52
------ ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ........................ 0.43 (0.88) 1.21 2.20 2.30 2.01
------ ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- -- -- --
Distributions from net realized capital gain ............ -- (0.63) (0.73) (0.96) (0.33) (0.06)
------ ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS ..................................... -- (0.63) (0.73) (0.96) (0.33) (0.06)
------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD .......................... $14.54 $14.11 $15.62 $15.14 $13.90 $11.93
====== ======= ======= ======= ======= =======
TOTAL RETURN: ........................................... 3.05% (5.82)% 8.28% 16.95% 20.10% 20.28%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $232,117 $374,890 $434,397 $350,359 $102,479 $46,269
Ratio of expenses to average net assets ................. 1.71%+ 1.65% 1.67% 1.75% 1.83% 1.92%
Ratio of net income (loss) to average net assets ........ (0.89)%+ (0.45)% 0.02% 0.01% (0.20)% (0.77)%
Portfolio turnover rate ................................. 31.92% 50.81% 57.24% 45.38% 63.05% 62.47%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------
SIX
MONTHS YEAR ENDED 4/22/96*
-------------
ENDED OCTOBER 31, TO
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $13.46 $15.04 $14.72 $14.44
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.11) (0.18) (0.11) (0.06)
Net realized and unrealized gain (loss)
on investments .......................................... 0.82 (0.81) 1.56 0.33
Net realized and unrealized gain (loss)
from foreign currency transactions ...................... (0.35) 0.04 (0.40) 0.01
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ........................ 0.36 (0.95) 1.05 0.28
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- --
Distributions from net realized capital gain ............ -- (0.63) (0.73) --
------- ------- ------- -------
TOTAL DISTRIBUTIONS ..................................... -- (0.63) (0.73) --
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD .......................... $13.82 $13.46 $15.04 $14.72
======= ======= ======= =======
TOTAL RETURN: ........................................... 2.67% (6.54)% 7.39% 1.94%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $175,437 $222,496 $247,600 $103,968
Ratio of expenses to average net assets ................. 2.46%+ 2.41% 2.43% 2.54%+
Ratio of net loss to average net assets ................. (1.64)%+ (1.21)% (0.74)% (0.80)%+
Portfolio turnover rate ................................. 31.92% 50.81% 57.24% 45.38%++
</TABLE>
- -----------------
See footnotes on page 73.
71
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL SMALLER COMPANIES FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS D
---------------------------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED OCTOBER 31,
--------------------------------------------------
4/30/99 1998 1997 1996 1995 1994
--------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ..................... $13.47 $15.05 $14.72 $13.63 $11.80 $9.94
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ...................................... (0.11) (0.18) (0.11) (0.11) (0.12) (0.16)
Net realized and unrealized gain (loss)
on investments ........................................... 0.82 (0.81) 1.57 2.34 2.20 1.57
Net realized and unrealized gain (loss)
from foreign currency transactions ....................... (0.35) 0.04 (0.40) (0.18) 0.08 0.51
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ......................... 0.36 (0.95) 1.06 2.05 2.16 1.92
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................... -- -- -- -- -- --
Distributions from net realized capital gain ............. -- (0.63) (0.73) (0.96) (0.33) (0.06)
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS ...................................... -- (0.63) (0.73) (0.96) (0.33) (0.06)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ........................... $13.83 $13.47 $15.05 $14.72 $13.63 $11.80
======= ======= ======= ======= ======= =======
TOTAL RETURN: ............................................ 2.67% (6.53)% 7.47% 16.14% 19.11% 19.45%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................. $197,459 $272,992 $370,625 $285,477 $85,548 $38,317
Ratio of expenses to average net assets .................. 2.46%+ 2.41% 2.43% 2.51% 2.61% 2.70%
Ratio of net loss to average net assets .................. (1.64)%+ (1.21)% (0.74)% (0.75)% (0.97)% (1.53)%
Portfolio turnover rate .................................. 31.92% 50.81% 57.24% 45.38% 63.05% 62.47%
</TABLE>
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
SIX
MONTHS 5/23/94*
ENDED YEAR ENDED OCTOBER 31, TO
----------------------------------------
4/30/99 1998 1997 1996 1995 10/31/94
--------- ----- ----- ----- ----- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ..................... $12.48 $15.14 $11.31 $13.05 $8.37 $7.14
------- ------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ...................................... (0.09) (0.14) (0.16) (0.08) (0.10) (0.01)
Net realized and unrealized gain (loss)
on investments ........................................... 4.58 0.01 4.06 (0.92) 4.90 1.08
Net realized and unrealized gain (loss)
from foreign currency transactions ....................... (0.19) 0.06 (0.07) 0.05 (0.05) 0.16
------- ------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS ......................... 4.30 (0.07) 3.83 (0.95) 4.75 1.23
------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................... -- -- -- (0.02) -- --
Distributions from net realized capital gain ............. (0.16) (2.59) -- (0.77) (0.07) --
------- ------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS ...................................... (0.16) (2.59) -- (0.79) (0.07) --
------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD ........................... $16.62 $12.48 $15.14 $11.31 $13.05 $8.37
======= ======= ======= ======= ======= ======
TOTAL RETURN: ............................................ 34.75% (0.79)% 33.86% (7.33)% 57.31% 17.23%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................. $568,498 $475,951 $583,257 $499,858 $447,732 $50,719
Ratio of expenses to average net assets .................. 1.65%+ 1.67% 1.67% 1.75% 1.91% 2.00%+
Ratio of net loss to average net assets .................. (1.11)%+ (1.04)% (1.10)% (0.74)% (0.89)% (0.45)%+
Portfolio turnover rate .................................. 49.96% 87.55% 94.06% 73.00% 87.42% 29.20%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets ................ 2.18%+
Ratio of net loss to average net assets ................ (0.63)%+
</TABLE>
- -----------------
See footnotes on page 73.
72
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------
SIX
MONTHS YEAR ENDED 4/22/96*
ENDED OCTOBER 31, TO
---------------
4/30/99 1998 1997 10/31/96
--------- ----- ----- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $11.98 $14.73 $11.09 $11.47
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.13) (0.23) (0.26) (0.08)
Net realized and unrealized gain (loss)
on investments .......................................... 4.40 0.01 3.97 (0.39)
Net realized and unrealized gain (loss)
from foreign currency transactions ...................... (0.19) 0.06 (0.07) 0.09
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 4.08 (0.16) 3.64 (0.38)
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- --
Distributions from net realized capital gain ............ (0.16) (2.59) -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ..................................... (0.16) (2.59) -- --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD .......................... $15.90 $11.98 $14.73 $11.09
====== ====== ====== ======
TOTAL RETURN: ........................................... 34.36% (1.55)% 32.82% (3.31)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s omitted) ................ $77,136 $58,575 $53,046 $18,840
Ratio of expenses to average net assets ................. 2.40%+ 2.43% 2.42% 2.51%+
Ratio of net loss to average net assets ................. (1.86)%+ (1.80)% (1.85)% (1.40)%+
Portfolio turnover rate ................................. 49.96% 87.55% 94.06% 73.00%++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------------------------------
SIX
MONTHS 5/23/94*
ENDED YEAR ENDED OCTOBER 31, TO
---------------------
4/30/99 1998 1997 1996 1995 10/31/94
--------- ----- ----- ----- ----- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................... $11.96 $14.73 $11.09 $12.89 $ 8.34 $7.14
------ ------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................... (0.13) (0.23) (0.26) (0.17) (0.18) (0.04)
Net realized and unrealized gain (loss)
on investments ....................................... 4.39 (0.01) 3.97 (0.91) 4.85 1.08
Net realized and unrealized gain (loss)
from foreign currency transactions ...................... (0.19) 0.06 (0.07) 0.05 (0.05) 0.16
------ ------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 4.07 (0.18) 3.64 (1.03) 4.62 1.20
------ ------- ------- ------- ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- -- -- --
Distributions from net realized capital gain ............ (0.16) (2.59) -- (0.77) (0.07) --
------ ------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS ..................................... (0.16) (2.59) -- (0.77) (0.07) --
------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD .......................... $15.87 $11.96 $14.73 $11.09 $12.89 $8.34
====== ======= ======= ======= ======= =======
TOTAL RETURN: ........................................... 34.34% (1.70)% 32.82% (8.07)% 55.95% 16.81%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $220,627 $184,032 $232,882 $197,412 $161,622 $6,499
Ratio of expenses to average net assets ................. 2.40%+ 2.43% 2.42% 2.52% 2.66% 2.75%+
Ratio of net loss to average net assets ................. (1.86)%+ (1.80)% (1.85)% (1.50)% (1.63)% (1.22)%+
Portfolio turnover rate ................................. 49.96% 87.55% 94.06% 73.00% 87.42% 29.20%
Without expense reimbursement and/or
management fee waiver:**
Ratio of expenses to average net assets ............... 3.36%+
Ratio of net loss to average net assets ............... (1.83)%+
</TABLE>
- ---------------
* Commencement of operations.
** The Manager and Seligman Henderson, the former subadviser to the Fund, at
their discretion, waived a portion of their fees and, in some cases,
Seligman Henderson reimbursed certain expenses for the periods presented.
+ Annualized.
++ For the year ended October 31, 1996.
See Notes to Financial Statements.
73
<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 Seligman Henderson Global Fund Series, Inc.,
(comprising, respectively, the International Fund, the Emerging Markets Growth
Fund, the Global Growth Opportunities Fund, the Global Smaller Companies Fund,
and the Global Technology Fund), as of April 30, 1999, 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, 1998, 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, 1999, 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 referred to
above present fairly, in all material respects, the financial position of each
of the respective Series constituting the Seligman Henderson Global Fund Series,
Inc. as of April 30, 1999, the results of their operations, the changes in their
net assets, and their financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
June 4, 1999
74
<PAGE>
BOARD OF DIRECTORS
JOHN R. GALVIN 2, 4
DEAN, Fletcher School of Law and Diplomacy
at Tufts University
DIRECTOR, Raytheon Company
ALICE S. ILCHMAN 3, 4
TRUSTEE, Committee for Economic Development
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2, 4
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
DIRECTOR, Conoco Inc.
JOHN E. MEROW 2, 4
RETIRED CHAIRMAN AND SENIOR PARTNER,
Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Industries, Inc.
DIRECTOR, New York Presbyterian Hospital
BETSY S. MICHEL 2, 4
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, 4
RETIRED PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
JAMES Q. RIORDAN 3, 4
DIRECTOR, KeySpan Energy Corporation
TRUSTEE, Committee for Economic Development
DIRECTOR, Public Broadcasting Service
RICHARD R. SCHMALTZ 1
MANAGING DIRECTOR, DIRECTOR OF INVESTMENTS,
J. & W. Seligman & Co. Incorporated
TRUSTEE EMERITUS, Colby College
ROBERT L. SHAFER 3, 4
RETIRED VICE PRESIDENT, Pfizer Inc.
JAMES N. WHITSON 2, 4
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, ICIMutual Insurance Company
MEMBER OF THE BOARD OF GOVERNORS,
Investment Company Institute
DIRECTOR EMERITUS
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
- ----------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
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
75
<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.
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 CHARGE (CDSC) -- Depending on the class of shares
owned, a fee charged by a mutual fund when shares are sold back to the fund. The
CDSC 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).
DIVIDENDYIELD -- A measurement of a fund's dividend as a percentage of the
maximum offering price or net asset value.
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 -- 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, how shares are bought and sold, fund fees and other
charges, and the fund's financial highlights.
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 -- Adocument that contains more detailed
information about an investment company 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 1998 MUTUAL FUND FACT BOOK.
76
<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 188 mutual funds at April
30, 1999.
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 616 mutual funds at April 30, 1999.
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 267 mutual funds at April 30, 1999.
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 98
mutual funds at April 30, 1999.
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 45 mutual funds at April 30, 1999.
MORGAN STANLEY CAPITAL INTERNATIONAL 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 SMITH BARNEY EXTENDED MARKET INDEX WORLD:
This index represents the small-capitalization stock universe. It comprises the
bottom 20% of the available capital of each country included in the Salomon
Smith Barney 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 SMITH BARNEY INCORPORATED.
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
Henderson Investment
Management Limited
3 Finsbury Avenue
London, EC2M 2PA
England
GENERAL DISTRIBUTOR
Seligman Advisors, 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
United States
(800) 622-4597 24-Hour Automated
Telephone Access
Service
77
<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 ADVISORS, INC.
AN AFFILIATE OF
[LOGO OMITTED]
J.&W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
EQSH3 4/99 [LOGO OMITTED] Printed on Recycled Paper
