[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
ANNUAL REPORT
OCTOBER 31, 1999
--------
INVESTING
AROUND THE WORLD
FOR CAPITAL
APPRECIATION
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
<PAGE>
[BACK COVER]
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.
[LOGO]
EQSH2 10/99 [Recycle logo] Printed on Recycled Paper
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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.
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[PHOTO]
JAMES, JESSE, AND JOSEPH SELIGMAN, 1870
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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 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.
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.
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 ................................. 31
Performance and Portfolio Overview ................ 33
Portfolio of Investments .......................... 36
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
The past fiscal year witnessed a significant turnaround for the global economy
and stock markets. In the wake of the global financial crisis in 1998, major
central banks around the world lowered interest rates and provided liquidity. In
response, the world economy recovered significantly and stock markets rallied
strongly. In particular, Asian markets surged from very depressed levels.
The 12-month period was thus positive for global investors, including investors
in Seligman Henderson Global Fund Series, which boasts double-digit 12-month
returns for each Fund in the Series. While investor sentiment is vastly improved
from one year ago, the outstanding stock market returns and robust economic
growth have triggered concerns regarding inflation. The US Federal Reserve
Board, in particular, has been vigilant and raised the federal funds rate three
times during calendar year 1999, which completely reversed all of 1998's rate
cuts.
Looking ahead, we believe that the environment for global stock markets will
continue to be positive, although it will be difficult for stock markets to
match some of the spectacular gains they posted this past fiscal year. The
possibility of rising interest rates may dampen returns somewhat, but we believe
that strong economic growth around the world will continue to create a
supportive environment for global stock markets.
As the millennium approaches, we have become concerned that the media's focus on
the Year 2000 (Y2K) computer issue, and the fears that this attention may spark,
will cause some investors to take actions that are not in their best long-term
interests. In our view, the primary danger to investors is losing sight of their
long-term financial goals and altering their portfolios and asset allocations in
an attempt to respond to the confusion surrounding this issue.
In the US, governments and businesses have committed substantial resources to
this issue and, while there may be scattered inconveniences, we believe that the
US will enter the year 2000 relatively seamlessly, and that much of the rest of
the developed world is also well positioned to deal with the new millennium. We
are confident that the financial services industry (including the Funds'
custodians and foreign sub-custodians) will experience no major disruptions.
For the past several years, J. & W. Seligman & Co. Incorporated, your Funds'
manager, has been working to ensure that shareholders do not experience any
Y2K-related inconveniences. We are pleased to report that the early start has
paid off. During the spring of this year, Seligman participated in Y2K testing
conducted by the Securities Industry Association, a US trade group. These tests
were completed without any Y2K-related problems on the part of Seligman. Tests
with key service providers were also conducted, all of which were successfully
completed in a Y2K environment. The Funds' portfolio management teams have also
sought to minimize the impact on Fund portfolios from companies, including those
companies based outside the US, that we believe are not adequately prepared for
the year 2000.
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 C. MORRIS
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William C. Morris
Chairman
/s/ BRIAN T. ZINO
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Brian T. Zino
President
December 10, 1999
1
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MARKET AND ECONOMIC OVERVIEW
OVERVIEW
During the fiscal year ended October 31, 1999, economic activity improved
markedly and global stock markets recovered sharply. At calendar year end 1998,
investors were concerned about the prospects for the world economy; however,
throughout calendar year 1999, the economic outlook steadily improved for all
regions. In particular, two of the largest economies, Japan and Germany, which
had been laggards, improved considerably. The strong global recovery has
generally improved investor sentiment, but has also raised concerns that overly
robust growth could trigger inflation, and global interest rates have moved
higher in response.
UNITED STATES
In October 1998, investors were concerned that the US economy might have been
pulled into a recession as a result of the world economic crisis. However, rate
easings by the US Federal Reserve Board and other central banks enabled the
global economy to recover. In the US, growth continued to be so strong that the
Fed became concerned that the pace of expansion might pose an inflationary
threat. The Fed thus reversed all its 1998 rate cuts during calendar year 1999.
The US stock market hit new highs during the fiscal year and posted strong
returns, although the gains were not as extraordinary as those posted by many of
the foreign markets that were very depressed last year.
UNITED KINGDOM
Overall, the stock market in the UK delivered strong performance, but there was
significant divergence between sectors. Service and domestic-related areas
performed well, while exports continued to suffer as a result of the strength of
the British pound sterling.
CONTINENTAL EUROPE
In the early part of the fiscal year, most major economies in Continental Europe
were struggling to grow at a reasonable pace. This was evidenced by the weakness
of the euro against the dollar since the formation of European Monetary Union at
the beginning of calendar year 1999. However, easier monetary policy, combined
with a weak currency and a resurgence in Asian economic activity, boosted the
economy overall, and manufacturing in particular. This improved the outlook for
Germany -- Europe's largest economy -- where manufacturing continues to play a
crucial role.
European stock markets generally followed the trends of the US markets, but a
weak currency caused US-dollar returns to be lower. Corporate profits continued
to grow at a reasonable pace, and a significant amount of merger and acquisition
activity has helped to maintain investor interest in the markets.
JAPAN
The Japanese government's continued huge fiscal expenditures finally began to
pay off and economic growth in the first half of the calendar year was ahead of
most expectations. Improvement in the private sector contributed to a stronger
yen, which has been slightly negative for economic growth, but positive for
foreign investors. The improving economy, in addition to corporate
restructuring, allowed the Japanese stock market to deliver the best performance
of the major markets during the one-year period under review.
PACIFIC REGION
Many Pacific region economies, although not all, have recovered markedly during
calendar year 1999. The economies of Korea and Singapore were the most improved
and their markets delivered the best performances in the region. By contrast,
Hong Kong lagged somewhat, since it did not have a weak currency to assist its
exports. More recently, stock markets have leveled off somewhat following the
large gains of the first half of the Fund's fiscal year.
EMERGING MARKETS
Despite the problems in Brazil in the early part of the period, Latin America
performed well as a result of the improving outlook for world economic growth.
The Russian economy also stabilized, benefiting emerging markets in Europe.
SUMMARY
This past fiscal year has been one of improving economic conditions worldwide.
While this has led to strong stock market returns, particularly in some of the
markets which were hardest hit by the economic crisis of 1998, it has also
produced inflationary concerns. Although there have been no clear signs of
inflation, central banks in the US, UK, and countries within European Monetary
Union have recently raised short-term rates in response. Long-term bond yields
also reacted negatively to rising world demand and rose significantly. Rising
rates modestly dampened returns for most Western stock markets. The most
spectacular gains have been in Asia, where we believe there is still ample room
for recovery before inflation becomes a threat.
2
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
PERFORMANCE REVIEW
For the fiscal year ended October 31, 1999, Seligman Henderson International
Fund posted a total return of 20.96%, based on the net asset value of Class A
shares, compared to 25.42% for the Lipper International Funds Average and 23.37%
for the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI
EAFE) Index.
The fiscal year was characterized by wide variations in regional stock market
performance. European markets, in general, rose modestly. Although the economic
background was positive, higher short- and long-term interest rates placed a
drag on market performance. In contrast, Asian stock markets -- both in Japan
and elsewhere -- rose strongly, as investors became confident that the economic
recovery in the region would be sustained.
PORTFOLIO STRATEGY
UNITED KINGDOM
The UK stock market generally tracked the ups and downs of the US market, with
significant volatility. As it became clear that the global economy was
recovering, domestic and economically sensitive stocks began to perform well.
However, there was an abrupt change in July when the Bank of England raised
interest rates, causing cyclical stocks to sell off sharply. Throughout the
period, UK technology and telecommunications stocks performed well.
The Fund's weighting in the UK remained generally stable over the period. The
Fund was overweighted in economically sensitive stocks, and this contributed to
positive performance for most of the year. Following the interest rate hike in
the UK, however, we adopted a more neutral position on these stocks.
CONTINENTAL EUROPE
In local currency terms, European stock markets performed reasonably well.
However, the weakness of the euro depressed US dollar returns, which were
generally flat for the fiscal year. Also, as in the UK, there were significant
performance differences between sectors. Economically sensitive stocks generally
performed well, while defensive stocks underperformed. Telecommunication and
technology stocks were strong performers throughout the year. A positive factor
for the market has been the large amount of merger and acquisition activity,
particularly in the financial and manufacturing sectors, which we believe is
likely to continue throughout the next fiscal year.
The Fund's overweighting in Continental Europe throughout the year dampened Fund
performance relative to its benchmarks. However, our decision to reduce the
Fund's exposure to defensive stocks early in the year was beneficial. Now that
the economic recovery has broadened throughout Europe and strong corporate
profit growth is expected to con-tinue, we will likely maintain the Fund's
overweighted position in Continental Europe.
JAPAN
The Japanese stock market, boosted by a very strong rise in the Japanese yen
versus the US dollar, was the
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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.
- --------------------------------------------------------------------------------
[Picture of Fund Managers]
INTERNATIONAL TEAM: (FROM LEFT) JAMES ROBINSON, BEN ELWES, IAIN CLARK (PORTFOLIO
MANAGER), DAVID THORNTON, PETER BASSETT, (SEATED) STACEY NAVIN, KIRSTEEN
MORRISON
3
<PAGE>
INVESTMENT REPORT
Seligman Henderson International Fund
strongest-performing major stock market this year. The big turnaround came
toward the end of the first quarter at the first signs of economic recovery. In
particular, the stock market rally has been driven by large inflows of money
from foreign investors. The strong yen, however, dampened profits in the export
sector. Investors have focused on what could be described as "new Japan" stocks,
mainly in the service and technology sectors.
The Fund initially had a low weighting in Japan. We did, however, increase this
weighting significantly during the fiscal year, particularly in early March.
However, the Fund remains underweighted versus the MSCI EAFE Index. We will
likely further increase the Fund's weighting in Japan during the coming fiscal
year, but we will be cautious because we are slightly concerned about the yen at
current levels and think that it may now begin to weaken. We believe that this
may in fact be required to keep the Japanese economy moving forward.
PACIFIC REGION
In the Pacific, stock market performance was mixed. The strongest economic and
market recoveries were in Korea and Singapore. In contrast, continued political
turmoil in Indonesia negatively affected stock market performance there. Hong
Kong and Australia both posted moderate gains, both in terms of economic growth
and stock market performance. Overall, improving economic growth on a global
basis should be positive for the Pacific region.
The Fund remained underweighted in the region, which was clearly a negative,
given the strength of the regional recovery. However, over the last few months,
Asian stock markets have slightly underperformed those elsewhere, and this
weakness may provide the Fund with an opportunity to increase the portfolio's
exposure to the region during the coming fiscal year.
EMERGING MARKETS
Improving global growth is generally positive for emerging markets, and they
thus performed well during the fiscal year. The fears of last year have
subsided, and foreign investors have gradually started to return to these
markets. The Fund reduced its exposure to emerging markets during the period,
but the portfolio's overweighting in Greece helped overall performance.
OUTLOOK
The global economic outlook remains positive, with steady growth and low
inflation likely to continue. While interest rates are unlikely to rise
sufficiently to be a serious negative, central banks are now more wary of
creeping inflation, and interest rates may rise slightly further from current
levels, which could somewhat dampen sentiment and stock market performance. We
expect earnings growth outside the US to continue, and international stock
markets to perform better following their long period of underperformance
against the US stock market.
4
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
COUNTRY ALLOCATION
OCTOBER 31, 1999
MSCI
EAFE
FUND INDEX
------ -----
CONTINENTAL EUROPE ............................. 50.76% 45.31%
Austria ..................................... -- 0.25
Belgium ..................................... 1.36 1.19
Denmark ..................................... -- 0.77
Finland ..................................... 1.83 2.11
France ...................................... 10.87 9.56
Germany ..................................... 10.20 9.55
Greece ...................................... 0.90 --
Ireland ..................................... 1.17 0.48
Italy ....................................... 3.22 3.81
Netherlands ................................. 9.77 5.36
Norway ...................................... -- 0.39
Portugal .................................... -- 0.47
Spain ....................................... 2.86 2.68
Sweden ...................................... 0.92 2.30
Switzerland ................................. 7.66 6.39
JAPAN .......................................... 18.67 28.60
PACIFIC EX. JAPAN .............................. 1.39 5.76
Australia ................................... 0.98 2.40
Hong Kong ................................... -- 2.20
New Zealand ................................. -- 0.16
Singapore ................................... -- 1.00
South Korea ................................. 0.41 --
UNITED KINGDOM ................................. 20.41 20.33
OTHER .......................................... 0.28 --
Israel ...................................... 0.28 --
OTHER ASSETS LESS LIABILITIES .................. 8.49 --
------ ------
TOTAL .......................................... 100.00% 100.00%
====== ======
LARGEST INDUSTRIES
OCTOBER 31, 1999
(THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.)
CONSUMER HEALTH AND
BANKING TELECOMMUNICATIONS PRODUCTS RESOURCES HOUSEHOLD
14.34% 8.77% 7.87% 6.62% 5.74%
$13,377,652 $9,088,941 $6,440,511 $5,352,272 $5,078,970
(THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE.)
REGIONAL ALLOCATION
OCTOBER 31, 1999
OTHER ASSETS LESS LIABILITIES 8.49%
CONTINENTAL EUROPE 50.76%
PACIFIC EX. JAPAN 1.39%
JAPAN 18.67%
UNITED KINGDOM 20.41%
OTHER 0.28%
LARGEST PORTFOLIO HOLDINGS
OCTOBER 31, 1999
SECURITY VALUE
- ------------ -----------
TOTAL Fina (B Shares) (France) ........ $1,964,154
WPPGroup (UK) ......................... 1,666,347
Royal Bank of Scotland Group (UK) ..... 1,608,427
Asahi Bank (Japan) .................... 1,573,107
BP Amoco (UK) ......................... 1,540,259
AXA(France) ........................... 1,540,211
Goodwill Group (Japan) ................ 1,439,485
Glaxo Wellcome (UK) ................... 1,416,915
INGGroep (Netherlands) ................ 1,391,747
Vivendi (France) ...................... 1,365,195
5
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson International Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-----------------------------------------------------------------------
CLASS C CLASS A CLASS B CLASS D
SINCE SINCE SINCE SINCE
INCEPTION SIX ONE FIVE INCEPTION INCEPTION INCEPTION
5/27/99* MONTHS* YEAR YEARS 4/7/92 4/22/96 9/21/93
------------- ---------- ------- ------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a 2.05% 15.18% 7.61% 10.81% n/a n/a
Without Sales Charge n/a 7.14 20.96 8.67 11.52 n/a n/a
CLASS B**
With CDSC+ n/a 1.78 15.08 n/a n/a 7.70% n/a
Without CDSC n/a 6.78 20.08 n/a n/a 8.40 n/a
CLASS C**
With Sales Charge and CDSC 8.32% n/a n/a n/a n/a n/a n/a
Without Sales Charge and CDSC 10.44 n/a n/a n/a n/a n/a n/a
CLASS D**
With 1% CDSC n/a 5.73 18.97 n/a n/a n/a n/a
Without CDSC n/a 6.73 19.97 7.75 n/a n/a 9.13%
LIPPER INTERNATIONAL
FUNDS AVERAGE*** 13.50ooo 8.85 25.42 9.85 11.65++ 11.64o 10.61oo
MSCI EAFE INDEX*** 12.64ooo 6.87 23.37 9.52 11.99+++ 9.88o 10.08oo
</TABLE>
NET ASSET VALUE
OCTOBER 31, 1999 APRIL 30, 1999 OCTOBER 31, 1998
------------------ --------------- -----------------
CLASS A $21.47 $20.04 $17.75
CLASS B 20.33 19.04 16.93
CLASS C 20.31 n/a n/a
CLASS D 20.31 19.03 16.93
CAPITAL GAIN INFORMATION
FOR THE YEAR ENDED OCTOBER 31, 1999
REALIZED $3.815
UNREALIZED 3.387++
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 per share 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 C shares are calculated with and
without the effect of the initial 1% maximum sales charge and the 1% CDSC,
charged on redemptions made within 18 months of the date of purchase.
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 From May 31, 1999.
++ Represents the per share amount of net unrealized appreciation of
portfolio securities as of October 31, 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 October 31, 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 chart in the printed piece.)
W/Sales charge w/o Sales Charge Lipper MSCI
4/7/92 9524 10000 10000 10000
9635 10117 10050 10478
9444 9917 9962 10327
10/31/92 9437 9908 9843 9875
9662 10145 9995 10102
4/30/93 11270 11833 12267 11456
11445 12017 12771 11821
10/31/93 12718 13354 13572 12995
14012 14712 14412 14471
4/30/94 13646 14329 14345 13885
13971 14670 14613 14063
10/31/94 14353 15071 14981 14391
12724 13361 13808 12899
4/30/95 13530 14207 15190 13780
14438 15160 15676 14655
10/31/95 14175 14884 14970 14308
15146 15903 16084 15229
4/30/96 15916 16712 16973 16052
15173 15932 16277 15532
10/31/96 15370 16138 16587 15957
15845 16637 16442 16673
4/30/97 16278 17092 16872 16989
18605 19535 19280 19374
10/31/97 16881 17725 17403 17645
17331 18197 18183 18046
4/30/98 20187 21196 20117 20505
20785 21824 20389 20666
10/31/98 17979 18878 19135 18356
19721 20707 20862 20061
4/30/99 20299 21313 22090 21150
20774 21813 22431 21888
10/31/99 21747 22834 23607 23022
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, Class C, 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 OCTOBER 31, 1999
SHARES
--------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/99
- ------------- ------------ ------------
ACOM (Japan) ................ 10,000 10,000
Asahi Bank (Japan) .......... 177,000 177,000
Bayerische Motoren Werke
"BMW" (Germany) .......... 26,666 26,666
Fortis (Belgium) ............ 36,765 36,765
Glaxo Wellcome (UK) ......... 48,000 48,000
Groupe Danone (France) ...... 4,448 4,448
Koninklijke Numico
(Netherlands) ............ 25,791 25,791
Rinnai (Japan) .............. 32,800 32,800
Veba (Germany) .............. 16,890 16,890
Verenigde Nederlandse
Uitgeversbedrijven "VNU"
(Netherlands) ............ 26,255 26,255
SHARES
--------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/99
- --------------- ------------ ------------
Actividades de Construccion
y Servicios (Spain) ........ 29,766 --
Benckiser (Series B)
(Netherlands) .............. 19,175 --
DaimlerChrysler (Germany) ..... 13,060 --
Magyar Tavkozlesi "Matav"
(ADRs) (Hungary) ........... 72,800 --
Nordbanken Holding (Sweden) ... 190,337 --
Suez Lyonnaise des Eaux
(France) ................... 7,272 --
Takefuji (Japan) .............. 7,400 --
Tele Danmark (Series B)
(Denmark) .................. 8,510 --
Telecom Italia (RNC) (Italy) .. 68,000 --
Tesco (UK) .................... 445,500 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
7
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson International Fund
SHARES VALUE
----------- ----------------
COMMON STOCKS 91.51%
AUSTRALIA 0.98%
COLONIAL
Provider of financial services in
banking, retail insurance, and
investments (Financial Services) 168,000 $ 618,549
RIO TINTO
International mining company
(Metals) 10,000 160,846
TELSTRA
Provider of telecommunications
services (Telecommunications) 25,500 129,798
-------------
909,193
-------------
BELGIUM 1.36%
FORTIS
Provider of banking and
insurance services
(Financial Services) 36,765 1,268,659
-------------
FINLAND 1.83%
NOKIA
Developer and manufacturer
of cellular phones and base
stations (Telecommunications) 11,096 1,272,915
SONERA GROUP
Provider of telecommunications
services (Telecommunications) 14,340 431,638
-------------
1,704,553
-------------
FRANCE 10.87%
AXA
Provider of financial services and
insurance (Insurance) 10,894 1,540,211
BANQUE NATIONALE DE PARIS "BNP"
Provider of commercial,
investment, and private banking
services (Banking) 14,901 1,311,795
CAP GEMINI
Provider of computer consulting
services
(Business Services) 3,440 522,258
CASTORAMA DUBOIS INVESTISSEMENTS
Operator of do-it-yourself
retail stores (Retailing) 2,484 745,857
GROUPE DANONE
Provider of packaged foods and
beverages
(Consumer Products) 4,448 1,137,210
STMICROELECTRONICS
Manufacturer of semiconductor
circuits for the automotive,
computer, and telecommunications
industries (Electronics) 9,437 830,777
TOTAL FINA (B SHARES)
Worldwide operator of gas and
oil (Resources) 14,498 1,964,154
VALEO
Manufacturer of automobile
components (Manufacturing) 9,970 717,927
VIVENDI
Water purification and
distribution; energy production
(Industrial Goods and Services) 17,972 1,365,195
--------------
10,135,384
--------------
GERMANY 10.20%
BAYERISCHE HYPO-UND VEREINSBANK
Provider of universal banking
services (Banking) 14,243 931,016
BAYERISCHE MOTOREN WERKE "BMW"
Manufacturer and worldwide
vendor of luxury automobiles
and motorcycles
(Automotive and Related) 26,666 861,693
CELANESE*
Provider of industrial chemical
products
(Chemicals) 2,560 40,080
DEUTSCHE BANK
Worldwide banking operation
(Banking) 13,113 936,923
DEUTSCHE LUFTHANSA
Provider of international
transport services (Transportation) 19,034 398,341
DEUTSCHE TELEKOM
Provider of telecommunications
services (Telecommunications) 21,576 997,481
EPCOS*
Worldwide supplier of electronic
components and integrated circuits
for the auto, consumer electronics,
and telecommunications industries
(Telecommunications) 12,160 497,427
HOECHST
Manufacturer of industrial
chemicals and pharmaceutical,
agricultural, and veterinary
products (Chemicals) 25,607 1,124,444
MANNESMANN
Manufacturer of plant and
machinery equipment; provider
of telecommunications services
(Industrial Goods and Services) 6,286 972,229
- --------
See footnotes on page 11.
8
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson International Fund
SHARES VALUE
----------- ----------------
GERMANY (CONTINUED)
SIEMENS
Worldwide manufacturer of
automotive electronics,
locomotives, electrical power
plants, and traffic control
systems (Manufacturing) 10,260 $ 919,455
THYSSEN KRUPP
Manufacturer of steel products
(Manufacturing) 38,912 914,856
VEBA
Provider of electric energy
(Utilities) 16,890 925,080
-------------
9,519,025
-------------
GREECE 0.90%
HELLENIC TELECOMMUNICATIONS
ORGANIZATION
Provider of telecommunications
services (Telecommunications) 24,500 520,977
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and
financial services (Banking) 23,320 322,107
-------------
843,084
-------------
IRELAND 1.17%
BANK OF IRELAND
Provider of banking services
(Banking) 140,000 1,095,203
-------------
ISRAEL 0.28%
UNITED PAN-EUROPE COMMUNICATIONS*
Provider of telecommunications
services (Telecommunications) 3,397 261,805
-------------
ITALY 3.22%
BANCA POPOLARE DI BRESCIA
Provider of commercial banking
and financial services (Banking) 22,124 938,845
ENI
Refiner and marketer of oil
and gas (Resources) 159,634 935,760
UNICREDITO ITALIANO
Provider of banking services
(Banking) 239,762 1,124,876
-------------
2,999,481
-------------
JAPAN 18.67%
ACOM
Provider of financial services
(Financial Services) 10,000 1,094,155
ASAHI BANK
Commercial bank
(Banking) 177,000 1,573,107
ASAHI BREWERIES
Producer of beer and
non-alcoholic beverages
(Consumer Products) 42,000 597,812
ASAHI CHEMICAL INDUSTRY
Producer of chemicals, plastics,
rubber, and food products
(Chemicals) 108,000 653,038
BRIDGESTONE
Retailer of automobile tires
(Automotive and Related) 18,000 495,825
FUJITSU
Manufacturer of
communication and
computer equipment
(Electronics) 17,000 512,333
GOODWILL GROUP
Provider of human resources
for events and relocations
(Business Services) 2 1,439,485
ITO-YOKADO
Supermarket operator
(Retailing) 8,000 640,369
MARUSAN SECURITIES
Provider of financial services
(Financial Services) 71,000 500,864
MITSUI CHEMICALS
Producer of petrochemical
products (Chemicals) 58,000 578,942
MITSUI MINING & SMELTING
Metal producer (Metals) 133,000 746,761
NAMCO
Manufacturer of game
equipment and software
(Entertainment and Leisure) 25,200 1,189,980
NIPPON STEEL
Steel producer and urban
development planner
(Metals) 254,000 646,031
NIPPON TELEGRAPH & TELEPHONE "NTT"
Provider of telecommunications
services (Telecommunications) 40 614,262
NIPPON TELEVISION NETWORK
Television broadcaster (Media) 730 658,604
NTT MOBILE COMMUNICATION NETWORK
"NTT DOCOMO"
Provider of telecommunications
services (Telecommunications) 36 957,098
ORIENTAL LAND
Operator of Tokyo Disneyland
(Entertainment and Leisure) 12,500 1,185,334
--------
See footnotes on page 11.
9
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson International Fund
SHARES VALUE
------ -----
JAPAN (CONTINUED)
RINNAI
Provider of gas appliances for
residential and commercial use
(Manufacturing) 32,800 $ 697,303
SONY
Developer and manufacturer of
audio and video equipment
(Consumer Products) 4,600 717,881
TDK
Provider of magnetic tapes and
heads for disk drives (Electronics) 5,000 489,970
TOSHIBA
Diversified manufacturer of
consumer and industrial
electronics (Electronics) 103,000 648,508
YAMAHA MOTOR
Manufacturer of motorcycles
and other recreational vehicles
(Automotive and Related) 96,000 781,342
--------------
17,419,004
--------------
NETHERLANDS 9.77%
AKZO NOBEL
Producer and marketer of
health care products and chemicals
(Health and Household) 24,467 1,056,070
EQUANT*
Provider of data network services
to multinational corporations
(Business Services) 8,142 794,030
ING GROEP
Provider of banking and
insurance services (Insurance) 23,539 1,391,747
KONINKLIJKE AHOLD
Distributor and marketer of
food products (Retailing) 15,369 473,143
KONINKLIJKE KPN
Provider of telecommunications
services (Telecommunications) 17,564 903,480
KONINKLIJKE NUMICO
Provider of nutritional products
(Consumer Products) 25,791 1,053,669
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) 7,860 807,963
ROYAL DUTCH PETROLEUM
Provider of international
oil services (Resources) 15,223 912,099
UNILEVER
International manufacturer
of personal care products
(Consumer Products) 12,593 836,438
VERENIGDE NEDERLANDSE
UITGEVERSBEDRIJVEN "VNU"
Newspaper and magazine
publisher (Media) 26,255 889,933
-------------
9,118,572
-------------
SOUTH KOREA 0.41%
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics and semi-
conductors (Electronics) 2,297 382,993
-------------
SPAIN 2.86%
BANCO SANTANDER CENTRAL HISPANO
Provider of banking
services (Banking) 91,516 952,310
IBERDROLA
Transmitter and distributor of
electrical power; provider of
engineering, real estate, and
telecommunications services
(Electronics) 46,765 683,358
TELEFONICA
Provider of telecommunications
services (Telecommunications) 62,735 1,034,453
-------------
2,670,121
-------------
SWEDEN 0.92%
ELECTROLUX (SERIES B)
Manufacturer of appliances and
outdoor products (Consumer
Products) 42,815 855,445
-------------
SWITZERLAND 7.66%
ABB
Manufacturer of rail transit
systems and components for
generating and distributing
electricity (Industrial Goods
and Services) 11,242 1,133,951
CLARIANT
Manufacturer of dyestuffs,
pigments, and other specialty
chemicals (Chemicals) 1,726 756,500
CREDIT SUISSE GROUP
Provider of banking and
financial services
(Financial Services) 2,518 484,804
- --------
See footnotes on page 11.
10
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson International Fund
SHARES VALUE
------ -----
SWITZERLAND (CONTINUED)
NOVARTIS
Manufacturer of pharmaceuticals
(Health and Household) 751 $ 1,125,168
ROCHE HOLDING
Developer and marketer of
pharmaceutical and chemical
products (Health and Household) 100 1,202,523
UBS
Provider of asset management
and banking services (Banking) 4,476 1,304,446
ZURICH ALLIED
Holding company active in
life insurance and asset
management (Insurance) 2,002 1,135,317
-------------
7,142,709
-------------
UNITED KINGDOM 20.41%
ALLIED ZURICH*
Holding company active in life
insurance and asset management
(Insurance) 69,500 843,590
ASTRAZENECA
Holding company, which through
its subsidiaries, is a researcher and
manufacturer of chemicals and
medical products
(Drugs and Health Care) 26,835 1,214,542
BP AMOCO
Explorer, producer, refiner,
and retailer of petroleum
products (Resources) 158,566 1,540,259
BRITISH AMERICAN TOBACCO
Producer and marketer of
tobacco products (Tobacco) 61,000 407,555
BRITISH TELECOMMUNICATIONS
Provider of telecommunications
services (Telecommunications) 52,500 953,062
BUNZL
Distributor and manufacturer
of paper and plastic products
(Manufacturing) 145,500 716,236
CABLE & WIRELESS
Provider of global
telecommunications services
(Telecommunications) 44,000 514,545
FKI
Electrical engineering company
(Industrial Goods and Services) 239,000 636,369
GLAXO WELLCOME
Pharmaceutical researcher
and manufacturer
(Drugs and Health Care) 48,000 1,416,915
GRANADA GROUP
Television group with leisure
interests, including hotels
(Entertainment and Leisure) 137,500 1,092,686
LAPORTE
Producer and seller of
specialty chemicals (Chemicals) 72,000 593,471
LAPORTE (CLASS B)*
Producer and seller of
specialty chemicals (Chemicals) 648,000 10,651
LLOYDS TSB GROUP
Provider of banking and
financial services (Banking) 92,500 1,278,597
NEXT
Clothing and financial retailer
(Consumer Products) 56,000 604,253
RAILTRACK GROUP
Provider of rail services
(Transportation) 43,500 889,418
RECKITT BENCKISER
Manufacturer and distributor of
household and pharmaceutical
products (Health and
Household) 60,000 728,772
ROYAL BANK OF SCOTLAND GROUP
Provider of banking services
(Banking) 70,000 1,608,427
SCOTTISH & NEWCASTLE
Brewery operator
(Consumer Products) 68,500 637,803
SMITHKLINE BEECHAM
Manufacturer and marketer of
pharmaceutical products;
provider of health care
products and services
(Health and Household) 75,000 966,437
UNITED UTILITIES
Provider of water utility
services (Utilities) 73,000 723,496
WPP GROUP
Provider of worldwide marketing
services, including advertising,
public relations, and market
research (Media) 152,000 1,666,347
---------------
19,043,431
---------------
TOTAL INVESTMENTS 91.51%
(Cost $70,221,245) 85,368,662
OTHER ASSETS
LESS LIABILITIES 8.49% 7,917,209
---------------
NET ASSETS 100.00% $93,285,871
===============
- ----------------
* 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 fiscal year ended October 31, 1999, Seligman Henderson Emerging Markets
Growth Fund posted a total return of 29.15%, based on the net asset value of
Class A shares, compared to 35.90% for the Lipper Emerging Markets Funds Average
and 44.63% for the Morgan Stanley Capital International Emerging Markets Free
(MSCI EMF) Index.
During the first half of the Fund's fiscal year, emerging markets rose strongly
on a relief rally following the extreme market weakness experienced during the
Russian currency devaluation crisis of August/September 1998. Korea, Indonesia,
Malaysia, and Russia benefited the most, and their markets doubled during that
six-month period. During the second half of the Fund's fiscal year, however,
market performance was more mixed. Latin America, in particular, suffered over
US interest rate worries.
The Fund's underperformance compared to its benchmarks during the fiscal year
was largely due to two factors. First, at the beginning of the fiscal year, we
were concerned about the financial condition of corporations in Asia and were
thus cautious about investing in the region; these markets subsequently rallied
strongly. Second, we overweighted the Fund in emerging Europe during the first
fiscal quarter because we expected strong economic recoveries in the region.
However, these economies did not recover until the third calendar quarter of
1999 and, in the interim, the Kosovo military conflict damaged investor
confidence in these markets.
[PICTURE]
INTERNATIONAL TEAM: (STANDING FROM LEFT) HEATHER MANNERS, DIVYA MATHUR, (SEATED
FROM LEFT) MONICA BALL, ELEANOR DALE, PETER BASSETT (PORTFOLIO MANAGER); (NOT
PICTURED) CHRIS EDWARDS, KIRSTEEN MORRISON, SHEILA SPARKS (ADMINISTRATIVE
ASSISTANT)
PORTFOLIO STRATEGY
During the fiscal year, we made a number of major asset allocation changes to
the Fund's portfolio. We began to overweight the Pacific region, which began to
experience a significant economic recovery during the period. We reduced the
Fund's holdings in Central Europe during the Kosovo crisis and then again at the
end of the fiscal year, when we reduced the portfolio's exposure to Greece,
which we perceived to be overvalued. We increased the Fund's exposure to India
during the second half of the fiscal year when it became evident that the
economy was experiencing a major recovery. Also in the second half of the Fund's
fiscal year, we increased the portfolio's exposure to South Africa when a
revival in commodities became evident.
NORTH PACIFIC REGION
In the North Pacific, the South Korean market rose 161.8%, substantially
outperforming other regional markets. Improving market confidence based on
economic recovery, inflows of liquidity from foreign investors, and a balance of
payments surplus were the principal causes behind the rally. The Taiwanese
market, which fell less than other regional markets during the 1997/1998 crisis,
also rebounded, but by a more subdued 27.9%. For most of the fiscal year, the
Chinese stock market was affected by concerns over deflation and poor growth
prospects, and rose a relatively modest 14.1%.
Early in the fiscal year, we increased the Fund's exposure to both the Korean
and Taiwanese markets. In Taiwan, we moved the Fund's focus away from closed-end
funds and invested in domestic technology issues. In China, we continued to
pursue infrastructure stocks.
- --------------------------------------------------------------------------------
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
SOUTH PACIFIC REGION
Performances in the South Pacific markets of Indonesia, Thailand, and the
Philippines varied greatly. Despite political uncertainty, the Indonesian market
posted the best performance, rising 164.3%, due to a strong rally in the rupiah
and improving confidence in the economy. In Thailand and the Philippines, the
markets were more subdued as a result of weak economic improvement, and rose
27.6% and 8.3%, respectively.
The Fund maintained limited exposure to these markets during the period. We
reduced the Fund's exposure to Indonesia ahead of the millennium because we
believe that this country's computers may not be as prepared as we would like
for the year 2000.
During the fiscal year, we avoided the Malaysian stock market. The government
only recently, in October 1999, clarified the currency controls it had imposed
in September 1998, and we felt that this market thus posed too many
uncertainties during this time period.
Over the fiscal year as a whole, Latin American markets posted positive results,
but gains were less spectacular than those of other regions. The Mexican market
advanced 36.6% due to an acceleration in economic growth and a benign interest
rate environment. The Chilean and Argentinean markets advanced 19.6% and 16.2%,
respectively. Despite the floating of the Brazilian currency in January and its
subsequent devaluation, the Brazilian market gained 3.2%.
During the period under review, we repositioned the Fund's portfolio in Mexico
from defensive stocks (with an emphasis on bottlers) to cyclical stocks. In
Brazil, we increased the portfolio's weighting in export-oriented stocks, after
the Brazilian currency devaluation.
EMERGING EUROPE
Performance in emerging European markets varied widely, with Russia, Greece, and
Turkey delivering the strongest performances. The Russian market rebounded
sharply from the August 1998 crisis and rose 103.3%. The Greek market rose 87.5%
as a result of the planned entry of the drachma into European Monetary Union,
which is expected to produce sharply lower interest rates. The Turkish market
also posted a strong performance of 78.9% based on expectations that inflation
will be reduced and interest rates will decline.
In contrast, market performances in Central Europe were relatively lackluster as
a result of poor economic growth and high levels of uncertainty during the
Kosovo crisis. The Polish market rose 6.6%, the Hungarian market rose 10.2%, and
the Czech Republic market rose 11.4%.
We maintained a significant weighting in Greece throughout the year, and the
Fund's Greek-bank holdings showed strong appreciation during the period. We also
re-established some of the Fund's positions in Russia during the period.
OTHER MARKETS
An acceleration of the Indian economy positively affected the Indian stock
market, which rose 61.5% during the period. By contrast, the South African
market rose just 12.3% due to high domestic interest rates and a fragile
currency.
During the period, we increased the Fund's exposure to the Indian stock market
and increased holdings in precious and base metals in South Africa.
OUTLOOK
The outlook for emerging markets for the coming fiscal year is encouraging, with
global economic growth accelerating and commodity prices likely to rally
further. Despite the recent rally, the Morgan Stanley Capital International
Emerging Markets Free Index is still more than 25% below its peak, which was
reached on September 1994, and we believe there is still great potential for
appreciation. However, rising US interest rates may cause some short-term
volatility.
NOTE: ALL FIGURES ARE IN US DOLLAR TERMS. ALL SPECIFIC MARKET PERFORMANCE
INFORMATION REPRESENTS THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) COUNTRY
INDEX FOR THE ONE-YEAR PERIOD ENDED OCTOBER 31, 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 OCTOBER 31, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------
CLASS C
SINCE SINCE
INCEPTION SIX ONE INCEPTION
5/27/99* MONTHS* YEAR 5/28/96
------------- ---------- ------ ------------
CLASS A**
<S> <C> <C> <C> <C>
With Sales Charge n/a (3.32)% 22.98% (3.28)%
Without Sales Charge n/a 1.52 29.15 (1.88)
CLASS B**
With CDSC+ n/a (3.76) 23.10 (3.48)
Without CDSC n/a 1.24 28.10 (2.62)
CLASS C**
With Sales Charge and CDSC 4.17% n/a n/a n/a
Without Sales Charge and CDSC 6.19 n/a n/a n/a
CLASS D**
With 1% CDSC n/a 0.09 27.10 n/a
Without CDSC n/a 1.09 28.10 (2.62)
LIPPER EMERGING MARKETS
FUNDS AVERAGE*** 7.88++ 6.85 35.90 (2.11)++
MSCI EMF INDEX*** 7.86++ 7.23 44.63 (4.25)+++
</TABLE>
NET ASSET VALUE
OCTOBER 31, 1999 APRIL 30, 1999 OCTOBER 31, 1998
------------------ --------------- ------------------
CLASS A $6.69 $6.59 $5.18
CLASS B 6.52 6.44 5.09
CLASS C 6.52 n/a n/a
CLASS D 6.52 6.45 5.09
CAPITAL GAIN INFORMATION
FOR THE YEAR ENDED OCTOBER 31, 1999
REALIZED $0.489
UNREALIZED 0.618o
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 per share 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 C shares are calculated with and without the effect of the initial 1%
maximum sales charge and the 1% CDSC, charged on redemptions made within 18
months of the date of purchase. 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.
++ From May 31, 1999.
o Represents the per share amount of net unrealized appreciation of portfolio
securities as of October 31, 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 October
31, 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 plot points are a representation of a chart]
<TABLE>
<CAPTION>
Class A Class A Class B Class D MSCI EMF Lipper
With Sales Load Without Sales Load With CDSC Without CDSC Index EMF Avg.
Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
5/28/96 9,520 10,000 10,000 10,000 10,000 10,000
7/31/96 9,013 9,468 9,454 9,454 9,375 9,487
10/31/96 9,040 9,496 9,468 9,468 9,440 9,565
1/31/97 10,173 10,686 10,630 10,644 10,299 10,761
4/30/97 10,653 11,190 11,106 11,106 10,476 11,008
7/31/97 12,453 13,081 12,969 12,969 11,522 12,463
10/31/97 9,787 10,280 10,182 10,182 8,639 10,012
1/31/98 9,173 9,636 9,524 9,524 7,856 9,125
4/30/98 10,600 11,135 10,980 10,966 8,954 10,405
7/31/98 9,000 9,455 9,300 9,300 7,135 8,533
10/31/98 6,907 7,255 7,129 7,129 5,962 6,841
1/31/99 7,080 7,437 7,283 7,297 6,262 7,037
4/30/99 8,787 9,230 9,020 9,034 8,041 8,701
7/31/99 9,120 9,580 9,356 9,370 8,660 9,419
10/31/99 8,920 9,370 8,858 9,132 8,623 9,297
</TABLE>
There are specific risks associated with global investing, such as currency
fluctuations, foreign taxation, differences in financial reporting practice, and
rapid changes in political and economic conditions.
As shown on page 14, the performance of Class C shares will be greater than
or less than the performance shown for Class A, Class B 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 OCTOBER 31, 1999
SHARES
-------------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/99
- --------- ------------ -------------
Acer (Taiwan) ............................. 380,000 437,000(1)
Centrais Eletricas Brasileiras
"Electrobras" (ADRs) (Brazil) ......... 79,800 79,800
Companhia Energetica de
Minas Gerais "CEMIG"
(ADRs) (Brazil) ....................... 38,400 38,400
Empresa Nacional de
Electricidad (ADRs)
(Chile) ............................... 61,500 61,500
Enersis (ADRs) (Chile) .................... 33,400 33,400
India IT Fund (India) ..................... 20,470 20,470
Larsen & Toubro (GDRs)
(India) ............................... 38,900 38,900
Siliconware Precision
Industries (Taiwan) ................... 440,000 440,000
State Bank of India (GDRs)
(India) ............................... 60,200 60,200
United Microelectronics
(Taiwan) .............................. 482,000 482,000
SHARES
-------------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/99
- ---------- ------------- -------------
Cheil Jedang (South Korea) ................ 10,000 7,000
Citic Pacific (China) ..................... 234,000 --
Companhia Paranaense de Ener-
gia "Copel" (ADRs) (Brazil) ........... 97,200 --
Elektrim Spolka Akcyjna
(Poland) .............................. 60,000 --
Fomento Economico Mexicano
"Femsa" (ADRs) (Mexico) ............... 35,000 --
Pepsi-Gemex (GDRs) (Mexico) ............... 97,000 --
Samsung Electronics
(South Korea) ......................... 4,446 9,664
Sarantis (Greece) ......................... 37,200 25,800
Taiwan Opportunities Fund
(Taiwan) .............................. 74,000 --
Telesp Celular Participacoes
(Brazil) .............................. 26,000 --
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 57,000 shares received as a result of a bonus issue.
15
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Emerging Markets Growth Fund
COUNTRY ALLOCATION
OCTOBER 31, 1999
MSCI
EMF
FUND INDEX
------- --------
EUROPE, MIDDLE EAST,
AND AFRICA .................................... 26.51% 30.25%
Croatia ..................................... 0.76 --
Czech Republic .............................. 1.29 0.77
Estonia ..................................... 0.39 --
Greece ...................................... 6.50 8.17
Hungary ..................................... 1.64 1.24
Israel ...................................... 1.99 3.92
Jordan ...................................... -- 0.14
Poland ...................................... 1.06 1.01
Russia ...................................... 0.91 1.62
South Africa ................................ 9.83 11.04
Turkey ...................................... 2.14 2.34
LATIN AMERICA .................................. 25.30 27.02
Argentina ................................... 1.58 2.44
Brazil ...................................... 8.49 8.07
Chile ....................................... 3.08 3.61
Colombia .................................... -- 0.37
Mexico ...................................... 12.15 11.00
Peru ........................................ -- 0.78
Venezuela ................................... -- 0.75
PACIFIC ........................................ 45.01 42.73
China ....................................... 4.37 0.59
India ....................................... 9.72 8.11
Indonesia ................................... 1.63 2.05
Pakistan .................................... -- 0.36
Philippines ................................. 1.76 1.45
South Korea ................................. 11.69 15.02
Sri Lanka ................................... -- 0.05
Taiwan ...................................... 13.91 12.06
Thailand .................................... 1.93 3.04
OTHER ASSETS LESS LIABILITIES .................. 3.18 --
------ ------
TOTAL .......................................... 100.00% 100.00%
====== ======
LARGEST INDUSTRIES
OCTOBER 31, 1999
[THE FOLLOWING PLOT POINTS REPRESENT A CHART]
TELECOMMUNICATIONS FINANCIAL METALS MANUFACTURING ELECTRIC
SERVICES UTILITIES
19.04% 12.57% 10.7% 8.8% 5.28%
$11,446,635 $7,557,425 $6,079,086 $4,918,450 $4,809,469
REGIONAL ALLOCATION
OCTOBER 31, 1999
OTHER ASSETS LESS LIABILITIES 3.18%
PACIFIC 45.01%
LATIN AMERICA 25.30%
EUROPE, MIDDLE EAST, AND AFRICA 26.51%
LARGEST PORTFOLIO HOLDINGS
OCTOBER 31, 1999
SECURITY VALUE
- -------- ----------
Telefonos de Mexico "Telmex"
(Class L ADRs) (Mexico) ..................... $1,992,150
China Steel (GDRs) (Taiwan) ..................... 1,626,739
Samsung Electronics (South Korea) ............... 1,611,338
China Telecom (Hong Kong)
(China) ..................................... 1,438,023
Taiwan Semiconductor Manufacturing
(ADRs) (Taiwan) ............................. 1,320,251
United Microelectronics (Taiwan) ................ 1,253,625
Pohang Iron and Steel (ADRs)
(South Korea) ............................... 1,151,438
Sarantis (Greece) ............................... 1,130,240
Korea Electric Power (South Korea) .............. 1,082,701
L.G. Chemical (South Korea) ..................... 1,059,191
16
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
------ ------
COMMON STOCKS 96.82%
ARGENTINA 1.58%
PEREZ COMPANC (ADRS)
Worldwide producer of oil
and gas (Resources) 33,300 $ 404,462
TELEFONICA DE ARGENTINA (ADRS)
Provider of telecommunications
services (Telecommunications) 11,500 294,687
TRANSPORTADORA DE GAS DEL SUR "TGS"
(ADRS)
Transporter of natural gas
(Resources) 30,000 251,250
-----------
950,399
-----------
BRAZIL 8.49%
ARACRUZ CELULOSE (ADRS)
Worldwide paper
manufacturer
(Paper and Printing) 18,700 383,350
CENTRAIS ELETRICAS BRASILEIRAS
"ELECTROBRAS" (ADRS)
Holding company for electrical
suppliers (Electric Utilities) 79,800 713,364
COMPANHIA ENERGETICA DE MINAS
GERAIS "CEMIG" (ADRS)
Provider of electric utility
services (Electric Utilities) 38,400 548,840
COMPANHIA CERVEJARIA
BRAHMA (ADRS)
Producer and distributor of beer
and soft drinks (Consumer
Goods and Services) 25,000 312,500
COMPANHIA VALE DO RIO DOCE (ADRS)
Mining and transportation
company (Resources) 21,500 419,308
PETROLEO BRASILEIRO "PETROBRAS" (ADRS)
Oil and gas producer and
distributor (Resources) 47,800 764,002
TELE CENTRO SUL PARTICIPACOES (ADRS)*
Provider of telecommunica-
tions services
(Telecommunications) 12,200 728,950
TELESP CELULAR PARTICIPACOES
Provider of telecommunica-
tions services
(Telecommunications) 24,000 387,276
TELESP PARTICIPACOES (ADRS)*
Provider of telecommunica-
tions services
(Telecommunications) 20,000 323,750
UNIAO DE BANCOS BRASILEIROS
"UNIBANCO" (GDRS)
Commercial bank
(Financial Services) 22,500 520,312
-----------
5,101,652
-----------
CHILE 3.08%
COMPANIA DE TELECOMUNICACIONES
DE CHILE (ADRS)
Provider of telecommunications
services (Telecommunications) 19,000 318,250
EMPRESA NACIONAL DE
ELECTRICIDAD "ENDESA" (ADRS)
Electrical supplier
(Electric Utilities) 61,500 784,125
ENERSIS (ADRS)
Provider of electric utility
services (Electric Utilities) 33,400 751,500
-----------
1,853,875
-----------
CHINA 4.37%
CHEUNG KONG INFRASTRUCTURE HOLDINGS
Real estate investment and
development (Construction
and Property) 240,000 454,113
CHINA RESOURCES ENTERPRISE
Investment holding company
with interests in real
estate, cold storage services, and
other products (Diversified) 450,000 579,225
CHINA TELECOM (HONG KONG)*
Provider of telecommunications
services (Telecommunications) 420,000 1,438,023
SHANDONG INTERNATIONAL POWER
DEVELOPMENT (H SHARES)*
Operator of electric power
plants (Electric Utilities) 972,000 155,140
-----------
2,626,501
-----------
CROATIA 0.76%
PLIVA (GDRS)
Manufacturer and retailer of
pharmaceutical products
(Drugs and Health Care) 42,000 456,750
-----------
CZECH REPUBLIC 1.29%
CESKA SPORITELNA*
Commercial bank
(Financial Services) 79,000 438,284
CESKE ENERGETICKE ZAVODY "CEZ"*
Electrical supplier
(Electric Utilities) 127,500 334,896
-----------
773,180
-----------
ESTONIA 0.39%
SOCIETIE GENERAL BALTIC
REPUBLICS FUND*
Investor in the Baltic
Republics (Miscellaneous) 3,200 233,600
-----------
GREECE 6.50%
ALPHA CREDIT BANK
Provider of banking services
(Financial Services) 7,350 564,065
- ----------
See footnotes on page 20.
17
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
---------- ------
GREECE (CONTINUED)
COMMERCIAL BANK OF GREECE
Provider of banking services
(Financial Services) 6,660 $ 497,056
HELLENIC TELECOMMUNICATIONS
ORGANIZATION
Provider of telecommunications
services (Telecommunications) 25,050 532,672
INTRACOM
Provider of telecommunications
equipment
(Telecommunications) 13,000 579,893
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and financial
services (Financial Services) 19,950 275,559
SARANTIS*
Manufacturer and distributor
of cosmetics (Drugs and
Health Care) 25,800 1,130,240
STET HELLAS TELECOMMUNICATIONS
(ADRS)+*
Provider of mobile
telecommunication services
(Telecommunications) 15,150 327,619
-----------
3,907,104
-----------
HUNGARY 1.64%
MAGYAR TAVKOZLESI "MATAV" (ADRS)
Provider of telecommunications
services (Telecommunications) 18,300 527,269
RICHTER GEDEON (GDRS)
Manufacturer of pharmaceuticals
and cosmetics
(Drugs And Health Care) 10,250 460,225
-----------
987,494
-----------
INDIA 9.72%
HINDALCO INDUSTRIES (GDRS)+
Producer of aluminum
and aluminum products
(Metals) 18,800 398,560
INDIA IT FUND*
Closed-end technology fund
(Miscellaneous) 20,470 798,330
ITC (GDRS)+
Holding company with interests
in tobacco, hotels, financial
services, paper, packaging and
printing, real estate, and
international export (Diversified) 28,200 534,390
LARSEN & TOUBRO (GDRS)
Manufacturer of engineering
equipment (Diversified) 38,900 842,185
MAHANGAR TELEPHONE NIGAM (GDRS)
Provider of telecommunications
services (Telecommunications) 68,850 568,012
SHARES OR
WARRANTS
----------
MAHINDRA & MAHINDRA (GDRS)*
Manufacturer of automobiles,
automobile components, and
farm equipment (Manufacturing) 37,100 shs. 284,742
SATYAM INFOWAY (ADRS)*
Provider of Internet access
and services (Computer and
Technology Related) 5,500 213,125
STATE BANK OF INDIA (GDRS)
Provider of banking services
(Financial Services) 60,200 801,412
TATA ENGINEERING & LOCOMOTIVE (GDSS)
Manufacturer of commercial
automobiles (Automotive
and Related) 95,900 613,760
VIDESH SANCHAR NIGAM (GDRS)
Provider of international
telecommunications services
(Telecommunications) 15,000 239,250
VIDESH SANCHAR NIGAM (GDRS)+
Provider of international
telecommunications services
(Telecommunications) 34,200 551,475
-----------
5,845,241
-----------
INDONESIA 1.63%
PT BANK PAN INDONESIA**
Commercial bank
(Financial Services) 7,820,000 914,620
PT BANK PAN INDONESIA*
Commercial bank
(Financial Services) 690,000 wts. 28,498
PT TELEKOMUNIKASI INDONESIA
Provider of
telecommunications services
(Telecommunications) 72,000 shs. 34,211
-----------
977,329
-----------
ISRAEL 1.99%
DELTA-GALIL INDUSTRIES (ADRS)*
Clothing manufacturer
(Manufacturing) 50,000 628,125
KOOR INDUSTRIES
Investment company whose
subsidiaries manufacture
building materials and
telecommunications
equipment (Diversified) 6,900 570,584
------------
1,198,709
------------
MEXICO 12.15%
ALFA (SERIES A)
Producer of steel, chemicals, and
food products (Diversified) 73,300 279,260
CEMEX (ADRS)*
Provider of cement products
(Construction and Property) 25,440 572,400
- ----------
See footnotes on page 20.
18
<PAGE>
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
------ ------
MEXICO (CONTINUED)
CIFRA (ADRS)*
Retail operator (Retailing) 33,000 $ 515,255
GRUPO CARSO (ADRS)*
Diversified holding company
(Diversified) 80,000 667,736
GRUPO MEXICO (CLASS B)
Mineral miner
(Metals) 147,000 533,339
GRUPO MODELO (SERIES C)
Brewery (Consumer Goods
and Services) 230,000 561,092
GRUPO TELEVISA (GDRS)*
Provider of television and
other media services
(Media) 20,800 884,000
NUEVO GRUPO IUSACELL (ADRS)*
Provider of wireless
telecommunications services
(Telecommunications) 63,288 751,545
TELEFONOS DE MEXICO "TELMEX"
(CLASS L ADRS)
Provider of telecommunications
services (Telecommunications) 23,300 1,992,150
TUBOS DE ACERO DE MEXICO
"TAMSA" (ADRS)
Manufacturer and retailer of
industrial pipes and tubing
(Manufacturing) 50,000 550,220
-----------
7,306,997
-----------
PHILIPPINES 1.76%
MANILA ELECTRIC (CLASS B)
Distributor of electricity
for heat and power
(Electric Utilities) 160,000 438,903
PHILIPPINE LONG DISTANCE TELEPHONE
Provider of telecommunications
services (Telecommunications) 10,000 208,229
PHILIPPINE LONG DISTANCE
TELEPHONE (ADRS)
Provider of telecommunications
services (Telecommunications) 20,000 411,250
-----------
1,058,382
-----------
POLAND 1.06%
AGORA (GDRS)*
Radio station and cable
television operator (Media) 28,700 288,435
SOFTBANK (GDRS)
PC wholesaler (Computer and
Technology Related) 12,300 346,849
-----------
635,284
RUSSIA 0.91%
SURGUTNEFTEGAZ (ADRS)
Oil and natural gas producer
(Resources) 65,500 545,287
-----------
SOUTH AFRICA 9.83%
ABSA GROUP
Provider of banking services
(Financial Services) 107,600 438,808
ANGLO AMERICAN CORPORATION OF
SOUTH AFRICA
Holding company for mining
and associated operations
(Metals) 14,800 787,888
ANGLO AMERICAN PLATINUM "AMPLATS"
Holding company for platinum
mine operators (Metals) 22,200 639,707
BARLOW
Producer and distributor of
products used in building and
construction and other
industries (Construction
and Property) 157,700 768,924
BILLITON
Diversified mineral producer
(Metals) 131,300 572,868
GOLD FIELDS
Gold mining operator
(Metals) 77,000 368,547
JD GROUP
Retailer of furniture, appliances,
and home entertainment
products (Retailing) 67,000 429,760
OLD MUTUAL*
Holding company which
specializes in life insurance
(Financial Services) 253,452 536,339
SAPPI
Producer of pulp, paper, and
timber products (Paper and
Printing) 74,800 619,832
STANDARD BANK INVESTMENT*
Provider of commercial
banking services
(Financial Services) 136,000 464,957
THETA GROUP*
Provider of banking services
(Financial Services) 170,000 280,912
-----------
5,908,542
-----------
SOUTH KOREA 11.69%
CHEIL JEDANG
Supplier of diversified consumer
products (Consumer Goods
and Services) 7,000 402,668
KOREA ELECTRIC POWER
Electric power generator and
supplier (Electric Utilities) 37,000 1,082,701
- ----------
See footnotes on page 20.
19
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Emerging Markets Growth Fund
SHARES VALUE
------ ------
SOUTH KOREA (CONTINUED)
KOREA TELECOM (ADRS)*
Provider of
telecommunications services
(Telecommunications) 17,200 $ 606,300
L.G. CHEMICAL
Manufacturer of petrochemicals,
ranging from cosmetics to
advanced materials (Chemicals) 35,000 1,059,191
POHANG IRON AND STEEL (ADRS)
Steel manufacturer for the
construction and shipbuilding
industries (Metals) 34,500 1,151,438
SAMSUNG ELECTRONICS
Manufacturer of consumer
electronics and semiconductors
(Manufacturing) 9,664 1,611,338
SHINHAN BANK (GDSS)*
Provider of banking services
(Financial Services) 22,800 485,070
SK TELECOM GROUP (ADRS)
Provider of mobile
telecommunications and paging
services (Telecommunications) 47,910 625,824
-----------
7,024,530
-----------
TAIWAN 13.91%
ACER*
Manufacturer of computer
products (Computer and
Technology Related) 437,000 833,496
CHINA STEEL (GDRS)*
Producer of steel and steel
products (Metals) 95,550 1,626,739
CHINATRUST COMMERCIAL BANK*
Commercial bank
(Financial Services) 603,200 553,377
FAR EASTERN TEXTILE*
Provider of textile products
(Manufacturing) 41,000 590,400
HON HAI PRECISION INDUSTRY (GDRS)*
Provider of electronic connectors
and cable assemblies
(Electronics Capital Equipment) 28,000 454,300
THE ROC TAIWAN FUND
Closed-end fund investing
in Taiwan (Miscellaneous) 122,000 937,875
SILICONWARE PRECISION INDUSTRIES*
Packaging of electronic
components (Computer and
Technology Related) 440,000 790,668
TAIWAN SEMICONDUCTOR
MANUFACTURING (ADRS)*
Manufacturer of integrated
circuits (Computer and
Technology Related) 38,130 1,320,251
UNITED MICROELECTRONICS*
Manufacturer of integrated
circuits (Manufacturing) 482,000 1,253,625
-----------
8,360,731
-----------
THAILAND 1.93%
SIAM CEMENT*
Cement manufacturer and
distributor (Construction
and Property) 31,000 803,005
THAI FARMERS BANK*
Provider of banking services
(Financial Services) 255,000 359,992
-----------
1,162,997
-----------
TURKEY 2.14%
KOC HOLDING
Holding company with
interests in diversified
industries such as finance,
retailing, and tourism
(Diversified) 4,215,000 425,209
MIGROS TURK
Retailer of food and consumer
products (Retailing) 1,066,250 460,193
TURKIYE IS BANKASI "ISBANK"
(GDRS)*
Provider of banking services
(Financial Services) 201,500 398,164
-----------
1,283,566
-----------
TOTAL INVESTMENTS 96.82%
(Cost $52,576,232) 58,198,150
OTHER ASSETS
LESS LIABILITIES 3.18% 1,914,463
-----------
NET ASSETS 100.00% $60,112,613
===========
- ----------
* Non-income producing security.
** Warrants attached.
+ Rule 144A security.
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 fiscal year ended October 31, 1999, Seligman Henderson Global Growth
Opportunities Fund posted a total return of 33.68%, based on the net asset value
of Class A shares, outpacing both the 26.28% total return of the Lipper Global
Funds Average and the 25.33% total return of the Morgan Stanley Capital
International World Index.
As markets around the world recovered over the past fiscal year, the Fund's
relative performance was influenced positively by three major factors. First,
the Fund was overweighted in the technology and telecommunications sub-themes,
which contributed significantly to the Fund's performance, since these sectors
outperformed the broader markets by a wide margin. The continually increasing
use of mobile communication devices, the Internet, and data transfer drove
demand for computers, software, and connectivity steadily higher during the
one-year period. Second, the Fund's emphasis on Japanese emerging growth
companies was timely, as this area of the market more than doubled in value
during the year. Third, the Fund's limited exposure to health care was
beneficial since the sector, which was plagued by investor concerns regarding
slower growth rates in the future, lagged considerably behind the broader market
averages.
PORTFOLIO STRATEGY
The Fund remained broadly invested in three major growth themes : Quality of
Life (29%), Productivity (42%), and Consumption (20%). During the year, we
significantly increased the Fund's exposure to the Productivity theme, which
includes information technology and telecommunication services, and reduced
exposure to the Consumption and Quality of Life themes.
QUALITY OF LIFE
During the first six months of the fiscal year, we substantially reduced the
Fund's investment in the health care sub-theme. While pharmaceutical stocks
continue to have exciting long-term growth prospects, supported by patents and
proprietary research, we concluded that, for many holdings, optimism for the
future was fully reflected in current prices.
PRODUCTIVITY
We continued to add substantially to the telecommunications sub-theme. The
increase in voice and data traffic over growing numbers of networks shows no
sign of abating. In fact, the demand for ever-greater bandwidth is likely to
accelerate. Telecommunications has now over
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
[Picture]
INTERNATIONAL TEAM: (STANDING, FROM LEFT) DAVID THORNTON, BEN ELWES, JOHN
CRAWFORD, PETER BASSETT, JEREMY HALL, (SEATED) NITIN MEHTA (PORTFOLIO MANAGER)
[PICTURE]
US TEAM: (FROM LEFT) DAVID LEVY, SHELIA GRAYSON (ADMINISTRATIVE ASSISTANT),
(SEATED) MARION SCHULTHEIS (PORTFOLIO MANAGER); (NOT PICTURED) JACK CHANG
(CO-PORTFOLIO MANAGER), CRAIG CHODASH, SANDRA LU
21
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Growth Opportunities Fund
taken both technology and consumer staples as the biggest sub-theme, with
approximately 16% of the Fund's total net assets invested in this area.
Around the world, we added several new telephone stocks. The most significant of
these include the dominant fixed-line and mobile network providers. In total,
the Fund has sixteen telecommunications-related investments.
Within the technology sub-theme, we added new investments in Asia. Following the
sharp economic contraction in the region, technology-related stocks there
offered what we perceived to be rare growth opportunities. In Japan, we added
companies involved in computer-system integration.
CONSUMPTION
During the first half of the fiscal year, rising consumer confidence in
Continental Europe, which was due to falling unemployment and record low
interest rates, led us to increase exposure to consumer-related stocks in this
region. However, as increasing competition put pressure on profit margins, we
sold some retailers. Throughout the world, traditional retailing has been
threatened by new competition, including Internet retailing.
OUTLOOK
The news about global economic activity continues to be surprisingly positive.
As a result, interest rates are likely to move somewhat higher, first in the US
and Europe, and eventually in Asia. However, we believe that much of this
increase has already been anticipated by the markets. As long as inflationary
pressures remain relatively muted, we believe that investors will not be overly
concerned about higher interest rates. We expect that, as central banks around
the world tighten their monetary policies in pre-emptive moves against
inflation, long-term bond yields in most markets will begin to decline. Such a
scenario would be supportive for growth stocks.
Among the themes emphasized by the Fund, we are most encouraged by the outlook
for the technology and telecommunications sub-themes. Despite currently high
valuations, we expect that accelerating demand and corporate activity will
create exciting growth opportunities in these sectors.
In an environment of low inflation and intense competition, real growth will
continue to be scarce. The experience of recent years has also shown that
investors around the world are eager to invest in businesses that promise high
profit growth, and we believe that this situation will continue. During the
coming fiscal year, we will continue to apply our thematic approach when looking
for companies with prospects for superior growth.
22
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
COUNTRY ALLOCATION
OCTOBER 31, 1999
MSCI
WORLD
FUND INDEX
------- -------
CONTINENTAL EUROPE ........................... 36.59% 21.54%
Austria ................................... -- 0.12
Belgium ................................... -- 0.56
Denmark ................................... 0.67 0.37
Finland ................................... 4.28 1.00
France .................................... 6.45 4.54
Germany ................................... 2.35 4.54
Greece .................................... 0.91 --
Hungary ................................... 0.25 --
Ireland ................................... 2.13 0.23
Italy ..................................... 3.17 1.81
Netherlands ............................... 6.25 2.55
Norway .................................... 1.70 0.18
Portugal .................................. -- 0.23
Spain ..................................... 4.19 1.28
Sweden .................................... 3.06 1.09
Switzerland ............................... 1.18 3.04
JAPAN ........................................ 11.47 13.59
LATIN AMERICA ................................ 1.59 --
Brazil .................................... 0.40 --
Mexico .................................... 1.19 --
PACIFIC ...................................... 3.23 2.74
Australia ................................. 1.35 1.14
China ..................................... 0.46 --
Hong Kong ................................. 0.70 1.04
New Zealand ............................... -- 0.08
Singapore ................................. 0.49 0.48
South Korea ............................... 0.23 --
UNITED KINGDOM ............................... 9.14 9.66
UNITED STATES ................................ 33.07 50.45
OTHER ........................................ -- 2.02
Canada .................................... -- 2.02
OTHER ASSETS LESS LIABILITIES ................ 4.91 --
------ ------
TOTAL ........................................ 100.00% 100.00%
====== ======
LARGEST INDUSTRIES
OCTOBER 31, 1999
[THE FOLLOWING REPRESENTS A CHART]
<TABLE>
<CAPTION>
TELECOMMUNICATIONS COMPUTER AND FINANCIAL BUSINESS GOODS DRUGS AND
TECHNOLOGY RELATED SERVICES AND SERVICES HEALTH CARE
15.9% 10.9% 9.5% 8.6% 8.5%
<S> <C> <C> <C> <C>
$37,352,610 $25,696,466 $22,405,908 $20,290,148 $20,081,386
</TABLE>
LARGEST PORTFOLIO HOLDINGS
OCTOBER 31, 1999
SECURITY VALUE
- -------- -------
Nokia (Finland) .......................................... $6,760,354
Microsoft (US) ........................................... 6,127,638
L.M. Ericsson Telefon
(Series B) (Sweden) .................................... 5,678,195
Tyco International (US) .................................. 4,385,138
WPP Group (UK) ........................................... 4,385,125
America Online (US) ...................................... 4,331,563
MCI WorldCom (US) ........................................ 4,289,062
BMC Software (US) ........................................ 4,279,222
Koninklijke (Royal) Philips
Electronics (Netherlands) .............................. 4,149,701
Carrefour Supermarche (France) ........................... 4,087,816
23
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Growth Opportunities Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------
CLASS C CLASS B
SINCE SINCE SINCE
INCEPTION SIX ONE INCEPTION INCEPTION
5/27/99* MONTHS* YEAR 4/22/96 11/1/95
--------- ------- ---- --------- ---------
<S> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a 4.89% 27.33% n/a 15.76%
Without Sales Charge n/a 10.10 33.68 n/a 17.20
CLASS B**
With CDSC+ n/a 4.68 27.66 14.17% n/a
Without CDSC n/a 9.68 32.66 14.78 n/a
CLASS C**
With Sales Charge and CDSC 11.35% n/a n/a n/a n/a
Without Sales Charge and CDSC 13.47 n/a n/a n/a n/a
CLASS D**
With 1% CDSC n/a 8.68 31.66 n/a n/a
Without CDSC n/a 9.68 32.66 n/a 16.32
LIPPER GLOBAL FUNDS AVERAGE*** 8.92@ 5.85 26.18 14.49++ 16.19o
MSCIWORLD INDEX*** 8.59@ 4.64 25.33 17.30++ 18.70o
</TABLE>
NET ASSET VALUE
OCTOBER 31, 1999 APRIL 30, 1999 OCTOBER 31, 1998
----------------- -------------- ------------------
CLASS A $12.86 $11.68 $9.62
CLASS B 12.47 11.37 9.40
CLASS C 12.47 n/a n/a
CLASS D 12.47 11.37 9.40
CAPITAL GAIN INFORMATION
FOR THE YEAR ENDED OCTOBER 31, 1999
REALIZED $2.145
UNREALIZED 3.713oo
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 per share 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 C shares are calculated with and without the effect of the initial
1% maximum sales charge and the 1% CDSC, charged on redemptions made
within 18 months of the date of purchase. 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.
@ From May 31, 1999.
o From October 31, 1995.
oo Represents the per share amount of net unrealized appreciation of
portfolio securities as of October 31, 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 October 31, 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 plot points represent a chart]
Class A Class A
With Sales Without
Charge Sales Charge Lipper MSCI Class D
---------- ------------ ------ ---- -------
11/1/95 9520 10000 10000 10000 10000
1/31/96 10107 10616 10602 10848 10660
4/30/96 10880 11429 11387 11363 11349
7/31/96 10627 11162 11106 11032 10980
10/31/96 10773 11317 11233 11683 11614
1/31/97 11307 11877 11751 12293 12467
4/30/97 11347 11919 11793 12593 12475
7/31/97 13253 13922 13740 14691 14492
10/31/97 12267 12885 12689 13699 13635
1/31/98 12748 13391 13152 14511 13986
4/30/98 15028 15786 15475 16312 15947
7/31/98 15069 15829 15503 16470 15771
10/31/98 13435 14112 13800 15847 14451
1/31/99 15599 16386 15988 18003 16342
4/30/99 16312 17134 16692 18982 17225
7/31/99 17052 17912 17412 19091 17687
10/31/99 17960 18865 18307 19862 18234
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 performances of Class B and Class C 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 OCTOBER 31, 1999
SHARES
-------------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/99
- ------------- ------------ -------------
Alza (US) .................................... 82,900 82,900
America Online (US) .......................... 33,400 33,400
BMC Software (US) ............................ 66,700 66,700
Cintas (US) .................................. 65,300 65,300
Cisco Systems (US) ........................... 37,400 48,100(1)
Compuware (US) ............................... 143,200 143,200
Corning (US) ................................. 49,400 49,400
Koninklijke Numico
(Netherlands) ............................ 57,862 57,862
MCI WorldCom (US) ............................ 31,500 50,000
Ryanair Holdings (Ireland) ................... 300,500 300,500
SHARES
------------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/99
- --------------- ----------- -------------
Accor (France) ............................... 11,993 --
AES (US) ..................................... 42,900 60,200
AlliedSignal (US) ............................ 60,300 --
AT&T (US) .................................... 88,650 --
Bristol-Myers Squibb (US) .................... 44,800 --
Kroger (US) .................................. 56,300 --
Metro (Germany) .............................. 43,500 --
Newell Rubbermaid (US) ....................... 69,800 --
Pfizer (US) .................................. 47,800(2) --
Superdiplo (Spain) ........................... 105,980 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ----------
(1) Includes 10,700 shares received as a result of a 2-for-1 stock split.
(2) Includes 28,600 shares received as a result of a 3-for-1 stock split.
25
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
--------- -----------
COMMON STOCKS 95.03%
AUSTRALIA 1.35%
BRAMBLES INDUSTRIES
Operator of diversified transpor-
tation and commercial services
(Business Goods and Services) 39,300 $1,105,910
COCHLEAR
Developer and marketer of
hearing aids
(Drugs and Health Care) 78,200 853,280
CSL
Manufacturer and marketer of
human and veterinary
pharmaceutical products
(Drugs and Health Care) 100,700 1,220,877
------------
3,180,067
------------
BRAZIL 0.40%
TELESP PARTICIPACOES (ADRS)*
Provider of telecommunications
services (Telecommunications) 58,000 938,875
------------
CHINA 0.46%
CHINA TELECOM (HONG KONG)*
Provider of telecommunications
services (Telecommunications) 312,000 1,068,245
------------
DENMARK 0.67%
ISS INTERNATIONAL SERVICE SYSTEM*
Provider of cleaning and
landscape management services
(Business Goods and Services) 29,300 1,574,889
------------
FINLAND 4.28%
NOKIA
Developer and manufacturer
of cellular phones and base
stations (Telecommunications) 58,930 6,760,354
SONERA GROUP
Provider of telecommunications
services (Telecommunications) 109,400 3,292,969
------------
10,053,323
------------
FRANCE 6.45%
ALCATEL
Developer of telecommunications
equipment and systems
(Telecommunications) 22,625 3,542,250
CAP GEMINI
Provider of computer
consulting services (Computer
and Technology Related) 15,156 2,300,972
CARREFOUR SUPERMARCHE
Supermarket operator in Europe,
the Americas, and Taiwan
(Retailing) 22,030 4,087,816
GENSET (ADRS)*
Biomedical research company
(Drugs and Health Care) 36,000 308,250
HACHETTE FILIPACCHI MEDIAS
Printer and publisher of magazines
and newspapers; online content
provider; distributor of cable radio
(Media) 18,725 945,631
SIDEL
Manufacturer of industrial
machinery (Manufacturing and
Industrial Equipment) 16,880 1,690,675
VALEO
Manufacturer of automobile
components (Automotive
and Related) 31,698 2,282,531
------------
15,158,125
------------
GERMANY 2.29%
ADIDAS-SALOMON
Manufacturer and marketer of
sporting goods (Retailing) 27,030 1,987,717
PORSCHE
Manufacturer of luxury sports cars
(Automotive and Related) 954 2,615,086
SIXT
Provider of automobile rental
and leasing services (Retailing) 29,845 772,480
------------
5,375,283
------------
GREECE 0.91%
COMMERCIAL BANK OF GREECE
Provider of banking services
(Financial Services) 20,181 1,506,170
NATIONAL BANK OF GREECE (GDRS)+
Provider of banking and financial
services (Financial Services) 46,200 638,137
------------
2,144,307
------------
HONG KONG 0.70%
HSBC HOLDINGS
Provider of international
banking and financial services
(Financial Services) 64,000 768,181
HUTCHISON WHAMPOA
Holding company with
interests in various
industries (Diversified) 88,000 883,511
------------
1,651,692
------------
HUNGARY 0.25%
MAGYAR TAVKOZLESI "MATAV" (ADRS)
Provider of telecommunications
services (Telecommunications) 12,000 345,750
MOL MAGYAR OLAJ-ES GAZIPARI
(GDRS)+
Oil and gas producer and
distributor (Resources) 12,250 245,000
------------
590,750
------------
- ----------
See footnotes on page 30.
26
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
--------- -----------
IRELAND 2.13%
ELAN (ADRS)*
Developer, manufacturer, and
marketer of pharmaceutical
delivery systems (Drugs and
Health Care) 98,550 $ 2,537,662
RYANAIR HOLDINGS*
Aircraft operator
(Transportation) 300,500 2,471,174
------------
5,008,836
------------
ITALY 3.17%
BANCA NAZIONALE DEL LAVORO "BNL"*
Provider of banking services
(Financial Services) 836,500 2,839,789
BANCA POPOLARE DI LODI
Provider of banking services
(Financial Services) 127,000 1,578,635
MEDIOLANUM
Life insurer; provider of
a wide range of financial
services (Financial Services) 373,000 3,039,853
------------
7,458,277
------------
JAPAN 11.47%
ABLE
Provider of real estate investment
management (Financial Services) 11,000 1,013,533
ASAHI PRETEC
Provider of recycling services
for precious metals (Industrial
Goods and Services) 25 1,271,715
CRESCO
Developer of computer software
(Computer and Technology
Related) 17,300 1,477,781
FANCL
Manufacturer and retailer of
cosmetics and nutritional
supplements (Consumer Goods
and Services) 5,600 1,612,439
H.I.S.
Travel agency specializing
in overseas and package tours
(Entertainment and Leisure) 52,520 2,091,928
INTER
Provider of loans to
individuals and small businesses
(Financial Services) 31,800 1,220,846
KEYENCE
Manufacturer of detection
devices and measuring control
equipment (Electronics) 10,600 2,843,555
MOBILEPHONE TELECOMMUNICATIONS
INTERNATIONAL
Provider of telecommunications
services (Telecommunications) 3 1,336,021
N.I.C.
Dispatcher of medical personnel
(Drugs and Health Care) 26,000 1,285,152
NIPPON TELEGRAPH & TELEPHONE "NTT"
Provider of telecommunications
services (Telecommunications) 145 2,226,701
NTT MOBILE COMMUNICATION
NETWORK "NTT DOCOMO"
Provider of telecommunications
services (Telecommunications) 62 1,648,335
OBIC BUSINESS CONSULTANTS
Provider of computer systems
support (Computer and
Technology Related) 1,000 344,563
SAGAMI CHAIN
Noodle restaurant chain
(Restaurants) 49,000 423,265
SANIX
Provider of pest control and
industrial waste disposal
(Consumer Goods and Services) 13,500 1,256,838
SUNDRUG
Operator of outlet drug stores
(Retailing) 19,300 1,322,603
TOKYO BISO KOGYO
Building maintenance
contractor (Business Goods
and Services) 112,000 1,289,951
TOUEI HOUSING
Real estate developer and
retailer (Construction and
Property) 38,000 1,531,817
UNITED ARROWS
Clothing retailer
(Consumer Goods and Services) 13,000 1,659,468
UNIVERSAL HOME
Provider of instructional
services for home design
(Business Goods and Services) 1 37,432
XEBIO
Retailer of outdoor clothing
(Retailing) 37,200 1,049,698
------------
26,943,641
------------
MEXICO 1.19%
GRUPO CARSO (ADRS)*
Diversified holding company
(Telecommunications) 164,000 1,368,859
NUEVO GRUPO IUSACELL (ADSS)*
Provider of wireless
telecommunications services
(Telecommunications) 119,411 1,418,006
------------
2,786,865
------------
NETHERLANDS 6.25%
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital Equipment) 40,000 2,829,741
- ----------
See footnotes on page 30.
27
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
--------- -----------
NETHERLANDS (CONTINUED)
EQUANT*
Provider of data network services
to multinational corporations
(Business Goods and Services) 40,600 $3,959,424
KONINKLIJKE NUMICO
Provider of nutritional
products (Consumer Goods
and Services) 57,862 2,363,901
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) 40,369 4,149,701
UNITED PAN-EUROPE COMMUNICATIONS
(ASHARES)*
Provider of telecommunications
services (Telecommunications) 17,978 1,385,552
------------
14,688,319
------------
NORWAY 1.70%
TOMRA SYSTEMS
Provider of recycling systems
used mainly for beverage
containers and crates
(Business Goods and Services) 104,550 4,005,133
------------
SINGAPORE 0.49%
CHARTERED SEMICONDUCTOR
MANUFACTURING (ADRS)*
Provider of electronic components
and semiconductors (Computer
and Technology Related) 3,500 116,156
GESINTERNATIONAL
Manufacturer of computer
equiment (Computer and
Technology Related) 553,000 482,606
NATSTEEL ELECTRONICS GROUP "NEL"
Manufacturer of electronic
products equipment for the
computer and telecommuni-
cations industries (Electronics) 140,000 547,698
------------
1,146,460
------------
SOUTH KOREA 0.23%
KOREA TELECOM (ADRS)*
Provider of telecommunications
services (Telecommunications) 15,000 528,750
------------
SPAIN 4.19%
ACTIVIDADES DE CONSTRUCCION
Y SERVICIOS
Designer and builder of public
works projects, residential homes,
and other buildings
(Construction and Property) 76,100 1,829,295
ALTADIS
Manufacturer and marketer
of tobacco products (Tobacco) 149,960 2,474,309
AZKOYEN
Manufacturer and marketer
of beverage vending machines
(Manufacturing and
Industrial Equipment) 143,450 1,394,427
SOCIEDAD GENERAL DE AGUAS
DE BARCELONA
Drinking water supplier; waste
management (Consumer Goods
and Services) 163,407 2,615,210
TELEFONICA PUBLICIDAD E INFORMACION*
Telephone directory publisher;
directory advertising retailer
(Media) 70,000 1,531,371
------------
9,844,612
------------
SWEDEN 3.06%
L.M. ERICSSON TELEFON (SERIES B)
Manufacturer of telecom-
munications equipment
(Telecommunications) 136,280 5,678,195
SECURITAS (SERIES B)
Provider of security services
(Consumer Goods and Services) 101,300 1,505,641
------------
7,183,836
------------
SWITZERLAND 1.18%
CREDIT SUISSE GROUP
Provider of banking and
financial services
(Financial Services) 14,425 2,777,320
------------
UNITED KINGDOM 9.14%
ASTRAZENECA
Holding company, which
through its subsidiaries, is a
researcher and manufacturer of
chemicals and medical products
(Drugs and Health Care) 65,289 2,954,955
BODYCOTE INTERNATIONAL
Diversified manufacturer and
distributor (Industrial Goods
and Services) 370,000 1,514,249
BRITISH TELECOMMUNICATIONS
Provider of telecommunications
services (Telecommunications) 55,000 998,446
CABLE & WIRELESS
Provider of global
telecommunications
services (Telecommunications) 45,000 526,240
GAMES WORKSHOP GROUP
Manufacturer and retailer
of specialty games (Retailing) 134,800 1,030,241
GRANADA GROUP
Television group with additional
leisure interests, including hotels
(Entertainment and Leisure) 197,600 1,570,289
- ----------
See footnotes on page 30.
28
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES VALUE
--------- -----------
UNITED KINGDOM (CONTINUED)
HALMA
Producer of fire detection and
security equipment (Electronics) 20,000 $ 35,666
HILTON GROUP
Leisure group with interests
in hotels and gaming
(Entertainment and Leisure) 375,000 1,146,411
PARITY
Provider of software engineering
and consulting services
(Computer and
Technology Related) 675,000 2,257,690
PIZZA EXPRESS
Operator of restaurant
chain (Restaurants) 245,000 3,241,590
SMITHKLINE BEECHAM
Manufacturer and marketer of
pharmaceutical products;
provider of health care
products and services
(Drugs and Health Care) 80,000 1,030,866
THOMSON TRAVEL GROUP
International vacation and
leisure company
(Entertainment and Leisure) 500,000 772,492
WPP GROUP
Provider of worldwide
marketing services, including
advertising, public relations,
and market research (Business
Goods and Services) 400,000 4,385,125
------------
21,464,260
------------
UNITED STATES 33.07%
AES*
Supplier of electricity
(Electric and Gas Utilities) 60,200 3,397,538
ALZA
Developer of pharmaceutical
products (Drugs and
Health Care) 82,900 3,549,156
AMERICA ONLINE*
Provider of electronic mail,
entertainment, reference, and
interactive publications, as well
as Internet access (Computer
and Technology Related) 33,400 4,331,563
AMERICAN INTERNATIONAL GROUP
Provider of insurance
(Financial Services) 37,218 3,831,128
BMC SOFTWARE*
Developer of mainframe
utility software (Computer
and Technology Related) 66,700 4,279,222
CBS*
Radio and television
broadcasting (Media) 82,000 4,002,625
CINTAS
Designer and manufacturer
of corporate uniforms
(Business Goods and Services) 65,300 3,932,284
CISCO SYSTEMS*
Manufacturer of computer
network products (Computers
and Business Services) 48,100 3,560,903
CITIGROUP
Provider of diversified
financial services
(Financial Services) 56,550 3,060,769
COMPUWARE*
Provider of mainframe
software and consulting
services (Computer and
Technology Related) 143,200 3,978,275
CORNING
Producer of diversified
components for the tele-
communications and television
industries (Diversified) 49,400 3,884,075
DISNEY, WALT
Theme parks and hotel operator;
film production (Entertainment
and Leisure) 97,600 2,574,200
GENERAL ELECTRIC
Supplier of industrial equipment
and consumer products
(Diversified) 25,750 3,490,734
HALLIBURTON
Manufacturer of products for
the energy industry (Resources) 97,900 3,689,606
MCI WORLDCOM*
Provider of telecommunications
services (Telecommunications) 50,000 4,289,062
MEDTRONIC
Manufacturer of pacemakers and
related cardiovascular products
(Drugs and Health Care) 97,200 3,365,550
MERCK
Developer and manufacturer
of pharmaceuticals (Drugs
and Health Care) 37,400 2,975,638
MICROSOFT*
Provider of personal computer
operating system and application
software products (Computer
and Technology Related) 66,200 6,127,638
PHILIP MORRIS
Manufacturer of tobacco
products, food, and beverages
(Tobacco) 65,700 1,654,819
- ----------
See footnotes on page 30.
29
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Growth Opportunities Fund
SHARES OR
PRIN. AMT. VALUE
------------ -----------
UNITED STATES (CONTINUED)
PROCTER & GAMBLE
Manufacturer and distributor
of household and personal
care products (Consumer
Goods and Services) 31,900 shs. $ 3,345,513
TYCO INTERNATIONAL
Worldwide provider of fire
protection devices, electronic
security services, and underwater
telecommunications systems
(Diversified) 109,800 4,385,138
------------
77,705,436
------------
TOTAL COMMON STOCKS
(Cost $154,422,602) 223,277,301
CORPORATE BONDS 0.06%
(Cost $136,121)
GERMANY 0.06%
METRO FINANCE
0%, 9/7/2013
(Financial Services) 249,000** 131,547
------------
TOTAL INVESTMENTS 95.09%
(Cost $154,558,723) 223,408,848
OTHER ASSETS
LESS LIABILITIES 4.91% 11,542,855
------------
NET ASSETS 100.00% $234,951,703
============
- ----------
* 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.
30
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
PERFORMANCE REVIEW
For the fiscal year ended October 31, 1999, Seligman Henderson Global Smaller
Companies Fund posted a total return of 11.55%, based on the net asset value of
Class A shares, compared to 26.86% for the Lipper Global Small Cap Funds Average
and 17.46% for the Salomon Smith Barney Extended Market Index World.
The performances of smaller companies around the world were mixed during the
fiscal year. Continually improving world economic growth should have provided a
very positive environment for global smaller companies. However, these companies
generally -- with the exception of some very specific sectors -- suffered from a
lack of pricing power, resulting in a difficult operating environment for many
of them. Recently, in some markets, small-capitalization stock performance has
been improving.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
[PICTURE OMITTED]
INTERNATIONAL TEAM: (STANDING, FROM LEFT) ANDREW MCNALLY, WILLIAM GARNETT,
HEATHER MANNERS, ANDREW STACK, (SEATED) MIRANDA RICHARDS, IAIN CLARK (PORTFOLIO
MANAGER)
[PICTURE OMITTED]
US TEAM: (FROM LEFT) MICHAEL SULLIVAN, MANDHIR UPPAL, SONIA THOMAS
(ADMINISTRATIVE ASSISTANT) BRUCE ZIRMAN, EDWARD HILLENMEYER, MICHAEL ALPERT,
(SEATED) RICK RUVKUN, ARSEN MRAKOVCIC (PORTFOLIO MANAGER)
PORTFOLIO STRATEGY
UNITED STATES
In the US, smaller companies trailed significantly behind their
large-capitalization counterparts. The Fund's US portfolio also suffered during
the period from its exposure to some health care stocks that delivered poor
performances during the fiscal year. However, the Fund benefited from being
underweighted, versus the Salomon Smith Barney Extended Market Index World, in
the US small-capitalization market.
UNITED KINGDOM
Of all the major markets, UK smaller companies delivered the strongest
performances relative to larger companies, particularly during the first six
months of the calendar year. More recently, however, smaller companies in the UK
have slightly underperformed the broader market as interest rates have begun to
move higher.
During the fiscal year, the Fund remained consistently overweighted in the UK,
with particular emphasis on service companies and technology. This has been a
benefit as several companies in these areas have performed very well. However,
we believe that these companies are nearly fully valued, and we anticipate
steadily decreasing our
31
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Smaller Companies Fund
weighting in the UK in favor of other international regions over the next few
months.
CONTINENTAL EUROPE
Smaller companies in Continental Europe generally remained out of favor through
most of the period. The focus of most of the merger and acquisition activity was
concentrated among large companies. As a result, smaller companies have not
performed particularly well, even where earnings growth has been very positive.
The portfolio's generally neutral to slightly overweighted position in
Continental Europe during the period had a negative impact on the Fund's
relative performance. Within the Fund's international portfolio, we have been
more optimistic regarding the prospects for other areas. However, valuations are
now quite low, and we are looking for an opportunity to increase our weighting,
since economic growth prospects are also improving.
JAPAN
While smaller companies participated in the Japanese stock market rally, they
generally lagged the returns of larger companies. However, certain companies and
sectors, where investors perceive good growth prospects, have performed well.
These have generally been "new Japan" stocks and fall largely within the service
and technology areas. Looking ahead, we believe that the improving economic
outlook will be supportive of smaller companies overall.
We began to significantly overweight Japan in the early part of the calendar
year, which was beneficial for performance. In particular, the Fund has good
exposure to companies that have the potential to grow rapidly, and some of these
have performed well during the year. However, valuations for high-growth
companies are now quite high, and we thus do not anticipate increasing the
Fund's Japanese weighting any further.
PACIFIC REGION
Smaller companies generally performed in line with larger companies throughout
the region, and thus rose during the course of the fiscal year. As elsewhere in
the world, however, the market has become sharply polarized. Companies showing
good bottom-line growth have performed well, while all others have stagnated.
During the course of the fiscal year, we began to significantly overweight the
Fund's position in the Pacific region. We have focused on technology and
service-related areas, and the companies in the Fund's portfolio have generally
performed well. The year 2000 seems likely to be positive for small companies in
the Pacific. We anticipate remaining overweighted in the region and may even
increase the Fund's exposure further.
OUTLOOK
Although smaller companies have underperformed the broader markets overall, the
best smaller companies have generally been rewarded. The global economic
background is supportive, but investors continue to demand high liquidity, and
this does not favor smaller companies. Valuations as a whole are attractive, but
in some specific growth areas, such as technology, we believe that they are now
quite high.
The coming fiscal year is likely to be challenging. The ongoing focus on
liquidity has favored larger companies, but we believe that this could turn
around sharply over the next 12 months. Overall, we believe the outlook for
smaller companies around the world is positive.
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 ONE-YEAR PERIOD ENDED OCTOBER 31, 1999, UNLESS OTHERWISE
STATED.
32
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
COUNTRY ALLOCATION
OCTOBER 31, 1999
SALOMON
SMITH BARNEY
EM INDEX
FUND WORLD
------- -----------
CONTINENTAL EUROPE ......................... 22.53% 17.69%
Austria ................................. -- 0.09
Belgium ................................. -- 0.43
Denmark ................................. 2.04 0.26
Finland ................................. 0.39 0.59
France .................................. 3.26 3.54
Germany ................................. 3.31 3.21
Greece .................................. -- 0.38
Ireland ................................. 1.66 0.24
Italy ................................... -- 1.72
Luxembourg .............................. 0.43 --
Netherlands ............................. 2.77 2.29
Norway .................................. 2.14 0.16
Portugal ................................ -- 0.18
Spain ................................... 0.76 1.09
Sweden .................................. 1.57 0.83
Switzerland ............................. 4.20 2.68
JAPAN ...................................... 13.48 9.91
PACIFIC .................................... 6.57 2.34
Australia ............................... 2.64 1.31
Hong Kong ............................... 2.71 0.75
New Zealand ............................. -- 0.06
Singapore ............................... 1.07 0.22
Taiwan .................................. 0.15 --
UNITED KINGDOM ............................. 16.61 11.45
UNITED STATES .............................. 33.05 56.63
OTHER ...................................... 3.44 1.98
Argentina ............................... 0.24 --
Canada .................................. 2.15 1.98
Israel .................................. 1.05 --
OTHER ASSETS LESS LIABILITIES .............. 4.32 --
-------- --------
TOTAL 100.00% 100.00%
========= ========
LARGEST INDUSTRIES
OCTOBER 31, 1999
[THE FOLLOWING TABLE REPRESENTS A CHART IN ITS PRINTED FORM]
<TABLE>
<CAPTION>
Business Services Computer Software Technology Construction and Property Retailing
<S> <C> <C> <C> <C>
10.4% 9.58% 6.91% 6.64% 6.48%
$55,409,869 $50,908,733 $36,756,871 $35,283,071 $34,444,165
</TABLE>
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN ITS PRINTED FORM]
REGIONAL ALLOCATION
OCTOBER 31, 1999
OTHER ASSETS LESS LIABILITIES 4.32%
UNITED STATES 33.05%
CONTINENTAL EUROPE 22.53%
UNITED KINGDOM 16.61%
JAPAN 13.48%
PACIFIC 6.57%
OTHER 3.44%
LARGEST PORTFOLIO HOLDINGS
OCTOBER 31, 1999
SECURITY VALUE
- ------------ --------------
Ashtead Group(UK) ...................................... $10,893,288
F.I. Group (UK) ........................................ 10,703,945
Parity (UK) ............................................ 10,084,349
Informa Group (UK) ..................................... 9,376,738
CMG(Netherlands) ....................................... 7,803,813
PizzaExpress (UK) ...................................... 7,210,884
Trifast (UK) ........................................... 7,165,636
Burr-Brown (US) ........................................ 6,567,600
Tilbury Douglas (UK) ................................... 6,525,314
Selecta Group (Switzerland) ............................ 6,146,895
33
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Smaller Companies Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------------
CLASS C CLASS A CLASS B CLASS D
SINCE SINCE SINCE SINCE
INCEPTION SIX ONE FIVE INCEPTION INCEPTION INCEPTION
5/27/99* MONTHS* YEAR YEARS 9/9/92 4/22/96 5/3/93
---------- -------- ------- ------ ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a 3.08% 6.28% 8.77% 14.08% n/a n/a
Without Sales Charge n/a 8.25 11.55 9.83 14.86 n/a n/a
CLASS B**
With CDSC+ n/a 2.82 5.70 n/a n/a 2.81% n/a
Without CDSC n/a 7.82 10.70 n/a n/a 3.60 n/a
CLASS C**
With Sales Charge and CDSC 5.51% n/a n/a n/a n/a n/a n/a
Without Sales Charge and CDSC 7.58 n/a n/a n/a n/a n/a n/a
CLASS D**
With 1% CDSC n/a 6.81 9.69 n/a n/a n/a n/a
Without CDSC n/a 7.81 10.69 8.99 n/a n/a 12.45%
LIPPER GLOBAL SMALL CAP
FUNDS AVERAGE*** 9.42++ 8.79 26.86 9.53 12.82++ 6.56o 11.44oo
SALOMON SMITH BARNEY
EM INDEX WORLD*** 3.65++ 3.26 17.46 9.32 11.09+++ 6.80o 9.68oo
NET ASSET VALUE
<CAPTION>
OCTOBER 31, 1999 APRIL 30, 1999 OCTOBER 31, 1998
----------------- -------------- -----------------
<S> <C> <C> <C>
CLASS A $15.74 $14.54 $14.11
CLASS B 14.90 13.82 13.46
CLASS C 14.91 n/a n/a
CLASS D 14.91 13.83 13.47
</TABLE>
CAPITAL GAIN INFORMATION
FOR THE YEAR ENDED OCTOBER 31, 1999
REALIZED $0.773
UNREALIZED 2.227ooo
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 per share 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 C shares are calculated with and without the effect of the initial
1% maximum sales charge and the 1% CDSC, charged on redemptions made
within 18 months of the date of purchase. 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.
++ From May 31, 1999.
o From April 30, 1996.
oo From April 30, 1993.
ooo Represents the per share amount of net unrealized appreciation of
portfolio securities as of October 31, 1999.
34
<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 October 31, 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 LINE CHART IN ITS PRINTED FORM]
<TABLE>
<CAPTION>
Class A Class A Salomon Smith Barney Lipper Global Small
With Sales Load Without Sales Load EM Index World Cap Fds. Avg.
Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9/9/92 9,520 10,000 10,000 10,000
10/31/92 9,533 10,014 10,016 9,787
1/31/93 10,528 11,059 10,960 10,523
4/30/93 11,343 11,915 11,704 11,655
7/31/93 12,225 12,841 12,398 12,252
10/31/93 13,334 14,006 13,977 12,822
1/31/94 15,150 15,914 15,153 13,511
4/30/94 14,895 15,645 14,534 13,346
7/31/94 14,263 14,982 14,217 13,383
10/31/94 16,037 16,846 15,016 13,611
1/31/95 14,757 15,501 13,766 12,862
4/30/95 16,461 17,291 14,658 13,809
7/31/95 18,567 19,504 16,496 14,832
10/31/95 19,260 20,231 16,400 14,547
1/31/96 19,922 20,926 17,163 15,484
4/30/96 22,540 23,677 18,947 16,880
7/31/96 21,930 23,036 18,071 15,880
10/31/96 22,526 23,661 18,761 16,713
1/31/97 23,205 24,375 19,716 17,260
4/30/97 22,049 23,161 18,863 16,662
7/31/97 25,016 26,277 21,619 19,110
10/31/97 24,391 25,621 20,877 18,942
1/31/98 23,981 25,191 20,262 18,783
4/30/98 28,247 29,671 23,544 21,236
7/31/98 26,928 28,286 19,761 21,818
10/31/98 22,972 24,130 18,092 18,663
1/31/99 24,535 25,772 19,684 20,749
4/30/99 23,672 24,866 20,580 21,763
7/31/99 25,495 26,781 21,418 23,187
10/31/99 25,626 26,918 21,252 23,675
</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 34, the performances of Class B, Class C, 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 OCTOBER 31, 1999
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/99
- -------------- ------------ -----------
Copart (US) ............................... 112,800 112,800
CSG Systems
International (US) ...................... 113,300 113,300
DoubleClick (US) .......................... 18,400 18,400
Engage Technologies (US) .................. 68,100 68,100
Intershop Communications
(Germany) ............................... 9,690 29,070(1)
Mandator (Sweden) ......................... 608,000 608,000
NOVA (US) ................................. 113,700 231,972
Tecis Holding (Germany) ................... 18,625 76,581(2)
U.S. Foodservice (US) ..................... 99,200 293,300(3)
Visio (US) ................................ 63,800 63,800
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/99
- ---------------- ------------ -----------
Analog Devices (US) ....................... 91,200 --
Benesse (Japan) ........................... 31,200 --
Burr-Brown (US) ........................... 152,100 166,400
Calpine (US) .............................. 92,400 --
CMG (Netherlands) ......................... 159,000 200,000
Coach USA (US) ............................ 132,900 --
Informa Group (UK) ........................ 1,656,100 1,400,000
Microchip Technology (US) ................. 89,100 63,400
Nobel Biocare (Sweden) .................... 313,256 --
Sankyo (Japan) ............................ 117,100 --
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 19,380 shares received as a result of a 3-for-1 stock split.
(2) Includes 57,656 shares received as a result of a 3-for-1 stock split.
(3) Includes 110,500 shares received as a result of a 2-for-1 stock split.
35
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
COMMON STOCKS 95.68%
ARGENTINA 0.24%
BANK OF IWATE
Commercial Bank
(Financial Services) 28,000 $ 1,289,951
-----------
AUSTRALIA 2.64%
BRL HARDY
Owner and operator of
vineyards; producer and
distributor of wines (Consumer
Goods and Services) 386,625 1,689,932
COCHLEAR
Developer and marketer of
hearing aids (Medical
Products and Technology) 212,800 2,321,970
CSL
Manufacturer and marketer
of human and veterinary
pharmaceutical products
(Medical Products and
Technology) 205,700 2,493,886
DATA ADVANTAGE
Provider of credit risk
information for the consumer
and commercial markets
(Business Services) 620,700 1,813,995
FUTURIS
Mini-conglomerate with
interests in automobile
components, livestock,
farm insurance, and
financial services
(Automotive Parts
Manufacturing) 1,231,694 1,564,029
PASMINCO*
Explorer, producer, and
developer of lead, zinc,
and silver mines (Metals) 1,354,600 1,296,555
PERPETUAL TRUSTEES AUSTRALIA
Provider of diversified
financial services
(Financial Services) 109,800 1,415,280
TAB
Gaming company which
markets wagers on horse
racing and sporting events
(Leisure and Hotels) 835,800 1,439,975
-----------
14,035,622
-----------
CANADA 2.15%
CELESTICA*
Provider of diversified services,
including design, assembly, and
product assurance (Electronics) 42,500 2,364,062
CINAR (CLASS B)*
Entertainment and education
company which produces
family-oriented films
(Media) 140,000 2,410,625
CLARICA LIFE INSURANCE
Provider of financial services
(Financial Services) 92,500 1,496,296
CLEARNET COMMUNICATIONS (CLASS A)*
Provider of telecommunications
services (Telecommunications) 64,000 1,412,000
CREO PRODUCTS*
Developer of technology
for the printing industry
(Paper and Printing) 24,000 613,500
FIRSTSERVICE*
Provider of property
management and
business services
(Business Services) 157,400 1,810,100
PMC-SIERRA*
Provider of high-speed
networking circuits
(Technology) 13,900 1,309,640
----------
11,416,223
----------
DENMARK 2.04%
DANSKE TRAELAST
Timber supply company
(Construction and Property) 26,648 2,399,835
SONDAGSAVISEN
Operator and distributor of
companies in the media
industry (Media) 67,067 3,709,511
SYDBANK
Commerical financial services
provider (Financial Services) 40,194 1,795,622
TK DEVELOPMENT
Holding company which owns
and invests in real estate,
and provides property
management services
(Construction and Property) 160,155 2,952,752
----------
10,857,720
----------
FINLAND 0.39%
RAPALA NORMARK*
Manufacturer and distributor
of fishing and hunting
equipment (Leisure and Hotels) 331,629 2,097,818
---------
FRANCE 3.26%
COMPAGNIE FRANCAISE D'ETUDES ET DE
CONSTRUCTION TECHNIP "TECHNIP"
Engineering contractor
(Construction and Property) 32,952 3,352,535
- -------------
See footnotes on page 44.
36
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
FRANCE (CONTINUED)
DU PAREIL AU MEME
Manufacturer and
distributor of clothing
for children (Retailing) 29,015 $ 2,324,879
ETAM DEVELOPPEMENT
Retailer of women's clothing
and intimate apparel (Retailing) 33,279 1,042,056
L'EUROPEENNE D'EXTINCTEURS
Manufacturer and distributor of
fire extinguishers
(Manufacturing) 46,985 2,359,909
GENSET (ADRS)*
Biomedical research company
(Drugs and Healthcare) 75,000 642,187
ROYAL CANIN
International manufacturer
and retailer of cat and dog food
(Consumer Goods and Services) 57,791 3,856,809
TRANSICIEL
Developer and installer of
computer software
(Computer Software) 64,582 3,738,075
-----------
17,316,450
-----------
GERMANY 3.31%
BERU
Developer, manufacturer, and
marketer of diesel engine
systems and automotive products
(Automotive Parts
Manufacturing) 159,254 3,433,586
BIEN-HAUS
Provider of residential and
multi-family homes
(Construction and Property) 9,850 1,973,122
HAWESKO HOLDING
Marketer of alcoholic beverages
(Consumer Goods and Services) 33,107 1,047,142
INTERSHOP COMMUNICATIONS*
Developer and marketer of
Internet software
(Computer Software) 29,070 3,585,875
KAMPS
Provider of baked goods to
independently operated stores,
restaurants, and caterers
(Consumer Goods and Services) 26,100 1,444,655
SIXT
Provider of automobile rental
and leasing services (Retailing) 70,804 1,832,624
TECIS HOLDING*
Provider of financial planning
services (Financial Services) 76,581 2,430,254
ZAPF CREATION*
Manufacturer of interactive
functional dolls and
inflatable swimming devices
(Manufacturing) 53,085 1,832,936
-----------
17,580,194
-----------
HONG KONG 2.71%
CAFE DE CORAL HOLDINGS
Holding company specializing
in areas such as fast food and
hospital catering
(Restaurants) 2,200,000 927,404
DAH SING FINANCIAL GROUP
Provider of banking services
(Financial Services) 448,000 1,787,617
ESPRIT HOLDINGS
Retail and wholesale distributor
of high-quality fashion
products (Retailing) 1,081,000 1,022,699
GIORDANO INTERNATIONAL
Clothing retailer (Retailing) 2,026,000 2,151,435
JCG HOLDINGS
Investment holding company
whose subsidiaries specialize
in diversified
financial services
(Financial Services) 2,250,000 1,223,613
JOHNSON ELECTRIC HOLDINGS
Designer, manufacturer, and
marketer of micromotors
(Electronics) 241,000 1,302,870
LI & FUNG*
Export trader and wholesale
distributor of consumer
products (Consumer Goods
and Services) 712,400 1,242,505
MANDARIN ORIENTAL INTERNATIONAL
Hotel operator
(Leisure and Hotels) 1,544,000 1,204,320
SOUTH CHINA MORNING POST HOLDINGS
English language newspaper
(Paper and Printing) 2,114,000 1,537,405
VARITRONIX INTERNATIONAL
Investment holding company
specializing in the manu-
facture and retail of liquid
crystal displays (Manufacturing) 446,000 961,578
YANZHOU COAL MINING (SERIES H)*
Mining company producing
prime-quality, low-sulphur
coal (Resources) 3,144,000 1,042,065
----------
14,403,511
----------
IRELAND 1.66%
ESAT TELECOM GROUP (ADSS)*
Provider of telecommunications
services (Telecommunications) 105,663 4,794,458
- ----------
See footnotes on page 44.
37
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
IRELAND (CONTINUED)
RYANAIR HOLDINGS*
Aircraft operator
(Transportation) 489,393 $4,024,543
----------
8,819,001
----------
ISRAEL 1.05%
ORBOTECH*
Manufacturer of automated
optical inspection systems for
circuit boards and flat panel
displays (Technology) 14,500 1,136,438
TEVA PHARMACEUTICAL INDUSTRIES
Developer and marketer of
pharmaceutical, disposable
medical, and veterinary products
(Drugs and Health Care) 92,400 4,466,962
----------
5,603,400
----------
JAPAN 13.48%
AIYA
Operator of restaurant chain
(Restaurants) 16,000 255,687
ANRITSU
Manufacturer of
electronic equipment
for diversified industries
(Electronics) 148,000 1,100,873
ASAHI DIAMOND INDUSTRIAL
Manufacturer of diamond-tipped
tools (Manufacturing) 210,000 1,368,557
ASATSU-DK
Advertising agency (Advertising) 31,900 1,126,711
CITIZEN ELECTRONICS
Manufacturer and retailer of
electronics products for
diversified industries (Electronics) 4,900 470,295
THE EIGHTEENTH BANK
Provider of banking services
(Financial Services) 260,000 1,207,793
ENPLAS
Manufacturer of electronic
components and engineering
plastics (Electronics) 62,200 2,513,312
FUJI MACHINE MANUFACTURING
Manufacturer of assembly
machines and chips for the
electronic industry
(Industrial Goods and Services) 22,400 1,042,710
FUJICCO
Food manufacturer (Consumer
Goods and Services) 95,000 2,115,366
FUJITEC
Manufacturer of elevators,
escalators, and sky-parking
systems (Construction and
Property) 87,000 969,450
GLORY
Manufacturer and major exporter
of currency-handling machines
(Manufacturing) 105,000 2,579,902
HIGASHI NIHON HOUSE
Home builder (Construction
and Property) 186,000 999,712
HIGOBANK
Commercial bank
(Financial Services) 283,000 1,287,475
H.I.S
Travel agency specializing in
overseas and package tours
(Leisure and Hotels) 46,410 1,848,560
HITACHI INFORMATION SYSTEMS
Leading data processing firm
(Computer Software) 64,000 2,469,335
HITACHI MEDICAL
Manufacturer of medical
equipment (Medical Products
and Technology) 95,800 1,178,766
HOGY MEDICAL
Producer of disposable surgical
gowns and supplies (Medical
Products and Technology) 16,000 1,074,959
HOKUTO
Company which grows
mushrooms for the purpose
of researching bacteria
(Consumer Goods and Services) 22,800 1,345,810
HORIBA
Manufacturer of instruments
and analyzers (Electronics) 147,000 1,523,755
IINO KAIUN KAISHA
Shipping company
(Transportation) 315,000 541,175
IYO BANK
Provider of banking services
(Financial Services) 185,000 1,187,878
JAPAN INFORMATION
PROCESSING SERVICE
Computer software developer
(Computer Software) 61,100 1,501,257
KENTUCKY FRIED CHICKEN
Fast food restaurants
(Restaurants) 134,000 1,736,251
KISSEI PHARMACEUTICAL
Manufacturer, seller, importer,
and exporter of medical
products (Drugs and Health Care) 60,000 1,151,742
KOMATSU SEIREN
Printer of long-staple fabrics
(Manufacturing) 226,000 1,078,050
KOMORI
Manufacturer of offset printing
machines (Capital Goods) 101,000 2,195,652
- --------------
See footnotes on page 44.
38
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
JAPAN (CONTINUED)
MASPRO DENKOH
Manufacturer of reception-related
telecommunications equipment
(Telecommunications) 71,600 $1,113,274
MEITEC
Provider of software engineering
services (Computer Software) 33,300 1,249,669
MITSUBISHI GAS CHEMICAL
Chemical producer
(Chemicals) 847,000 2,715,213
MITSUI HOME
Home builder
(Construction and Property) 364,000 1,802,707
MOSHI MOSHI HOTLINE
Provider of telephone-based
sales and marketing services
(Business Services) 12,000 1,497,265
NICHICON
Manufacturer of electrical
equipment (Manufacturing) 66,000 1,431,615
NIPPON BROADCASTING SYSTEM
Vendor of time slots of radio
broadcasting; producer and
marketer of radio programs
(Media) 14,000 1,134,082
NIPPON SEIKI
Manufacturer of automotive
components (Automotive
Parts Manufacturing) 116,000 1,503,023
NISHIO RENT ALL
Rentor of construction equipment
(Construction and Property) 68,100 542,500
NISSHA PRINTING
Integrated printing firm
(Paper and Printing) 96,000 664,325
OKINAWA ELECTRIC POWER
Supplier of electricity to Okinawa
Island (Electric Utilities) 49,900 1,048,863
RENGO
Manufacturer of corrugated
board and jute liners
(Paper and Printing) 356,000 1,879,259
ROHTO PHARMACEUTICAL
Provider of medicines for
human and veterinary use
(Drugs and Health Care) 97,000 753,172
RYOYO ELECTRO
Distributor of electronic
components (Electronics) 68,000 1,076,879
SAGAMI CHAIN
Noodle restaurant chain
(Restaurants) 54,000 466,456
SHIMACHU
Furniture retailer (Retailing) 61,600 1,146,981
SUNDRUG
Operator of outlet drug stores
(Retailing) 32,900 2,254,593
TAIYO INK MANUFACTURING
Manufacturer of resist inks for
printed circuit boards (Chemicals) 4,000 568,193
TAKASAGO INTERNATIONAL
Specialty chemicals producer,
including fragrances, flavorings,
and aromatic chemicals
(Chemicals) 222,000 1,161,244
TOKYO STYLE
Manufacturer of women's
ready-to-wear apparel
(Manufacturing) 108,000 1,031,385
TOWA PHARMACEUTICAL
Generic drug wholesaler
(Drugs and Health Care) 83,000 1,338,324
TSUBAKI NAKASHIMA
Manufacturer of ball bearings
(Manufacturing) 172,000 2,476,245
TSUDAKOMA*
Manufacturer of air-jet looms
(Manufacturing) 646,000 1,085,037
TSUTSUMI JEWELRY
Manufacturer and retailer of
jewelry (Retailing) 88,400 3,071,389
XEBIO
Retailer of outdoor clothing
(Retailing) 69,400 1,958,307
YOKOHAMA REITO
Processor and seller of seafood
and livestock products; cold
storage (Distribution) 126,000 805,413
-----------
71,646,446
-----------
LUXEMBOURG 0.43%
SBS BROADCASTING*
Television and radio broadcaster
(Media) 63,000 2,307,375
-----------
NETHERLANDS 2.77%
ATHLON GROEP
Automotive service supplier
(Consumer Goods and Services) 98,994 1,967,363
BETER BED HOLDING
Operator of retail outlets which
sell furniture and other
bedroom accessories (Retailing) 62,010 1,778,258
CMG
Information technology
consulting (Support Services) 200,000 7,803,813
SAMAS GROEP
Manufacturer of office
furniture (Manufacturing) 232,932 3,167,985
-----------
14,717,419
-----------
- --------------
See footnotes on page 44
39
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
NORWAY 2.14%
EKORNES
Manufacturer of home
furnishings (Manufacturing) 522,302 $ 3,868,311
PETROLEUM GEO-SERVICES*
Four-dimensional deep-sea
mapping company for the
oil-drilling industry (Industrial
Goods and Services) 165,937 2,479,138
TANDBERG TELEVISION*
Developer, manufacturer, and
marketer of television broadcast
systems (Telecommunications) 421,257 5,002,669
-----------
11,350,118
-----------
SINGAPORE 1.07%
NATSTEEL ELECTRONICS GROUP "NEL"
Manufacturer of electronic products
equipment for the computer
and telecommunications
industries (Manufacturing) 630,000 1,054,108
NEPTUNE ORIENT LINES
Provider of diversified
marine transit services
(Transportation) 1,190,016 1,726,114
SEMBCORP LOGISTICS*
Provider of diversified marine
transit services (Transportation) 344,000 1,283,659
VENTURE MANUFACTURING
Contract manufacturer for
the electronics industry
(Electronics) 181,000 1,612,278
-----------
5,676,159
-----------
SPAIN 0.76%
ENACO*
Operator of supermarkets
and wholesale outlets
(Retailing) 311,400 2,068,346
TELEPIZZA*
Operator of pizza restaurant
chain (Restaurants) 367,948 1,970,672
-----------
4,039,018
-----------
SWEDEN 1.57%
FINNVEDEN (SERIES B)
Industrial conglomerate
(Manufacturing) 202,290 2,834,160
MANDATOR
Provider of consulting services
and Internet technology
solutions (Telecommunications) 608,000 4,185,083
MUNKSJO
Producer of specialty paper
(Paper and Printing) 171,517 1,326,884
-----------
8,346,127
-----------
SWITZERLAND 4.20%
BON APPETIT HOLDING
Wholesale food retailer (Retailing) 1,631 1,211,086
KABA HOLDING
Provider of electronic and
mechanical security systems
(Business Services) 6,016 4,427,599
SELECTA GROUP
Owner and operator of food
and beverage vending machines
(Consumer Goods and Services) 17,355 6,146,895
SEZ HOLDING
Producer of spin etchers, which
are devices used by wafer
and chip manufacturers
(Manufacturing) 11,916 4,854,725
SWISSLOG HOLDING
Producer and installer of
automation systems
(Industrial Goods and Services) 36,223 5,706,705
-----------
22,347,010
-----------
TAIWAN 0.15%
TAIWAN AMERICAN FUND*
Closed-end fund investing
in Taiwan (Miscellaneous) 66,100 817,987
-----------
UNITED KINGDOM 16.61%
ASHTEAD GROUP
Rentor of equipment for
the construction industry
(Construction and Property) 3,820,000 10,893,288
BTG*
Technology transfer
company assisting in the
commercialization of
technological innovations
(Technology) 329,093 2,412,402
CLINTON CARDS
Retailer of greeting cards
(Retailing) 1,342,725 5,594,498
DAWSONGROUP
Rentor of commercial
vehicles (Transportation) 1,062,900 3,031,015
F.I. GROUP
Designer and builder of
software applications
(Computer Software) 1,250,000 10,703,945
GAMES WORKSHOP GROUP
Manufacturer and retailer
of specialty games (Retailing) 400,000 3,057,096
GWR GROUP
Local commercial radio
station operator (Media) 500,000 3,669,337
INFORMA GROUP
Provider of business
information for diversified
global markets
(Business Services) 1,400,000 9,376,738
- -------------
See footnotes on page 44.
40
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
UNITED KINGDOM (CONTINUED)
NATIONAL EXPRESS GROUP
Long distance coach services
operating in the UK and
Europe (Transportation) 305,000 $ 3,719,631
PARITY
Provider of software
engineering and consulting
services (Computer Software) 3,015,000 10,084,349
PIZZAEXPRESS
Operator of restaurant chain
(Restaurants) 545,000 7,210,884
SHIRE PHARMACEUTICALS GROUP*
Biotechnology company
specializing in metabolic bone
and Alzheimer's diseases
(Drugs and Health Care) 450,000 4,874,096
TILBURY DOUGLAS
Building contractor
(Construction and Property) 1,339,000 6,525,314
TRIFAST
Manufacturer and distributor
of fasteners for the
electronics industry
(Electrical Distribution) 463,800 7,165,636
-----------
88,318,229
-----------
UNITED STATES 33.05%
ABACUS DIRECT*
Provider of marketing research
services to the direct marketing
industry (Business Services) 7,600 1,113,162
ACXIOM*
Provider of data processing
services (Computer Software) 137,200 2,259,512
AFFILIATED COMPUTER
SERVICES (CLASS A)*
Provider of information
technology services and
electronic funds transfer
processing (Business Services) 23,000 874,000
AFFILIATED MANAGERS GROUP*
Holding company specializing
in asset management
(Financial Services) 77,700 2,078,475
AFFYMETRIX*
Developer and manufacturer of
DNAchip technology used to
improve diagnosis, monitoring,
and treatment of diseases
(Medical Products and
Technology) 7,600 670,700
ALPHARMA (CLASS A)
International provider of
pharmaceutical and health
products (Drugs and Health Care) 49,400 1,738,263
AMERICAN CAPITAL STRATEGIES
Provider of commercial
financing (Financial Services) 76,700 1,610,700
AMERICAN HOMESTAR*
Retailer and producer of
manufactured homes
(Manufacturing) 51,700 199,530
ANADIGICS*
Designer and manufacturer
of circuits for the
communications industry
(Electronics) 16,600 636,506
ANTEC*
Developer and supplier of
products for the cable
television industry
(Telecommunications) 79,900 3,867,659
APEX*
Manufacturer of switching
systems for computer network
administrators (Technology) 87,100 1,494,309
APPLIED GRAPHICS TECHNOLOGIES*
Provider of digital media
asset services; publisher of
greeting cards and calendars
(Paper and Printing) 108,000 756,000
ASPECT DEVELOPMENT*
Provider of computer software
products (Computer Software) 68,400 2,404,688
AVANT!*
Developer and marketer
of software products that
assist design engineers
(Computer Software) 136,600 1,762,994
AVX
Manufacturer and supplier of
passive electronic components
and related products
(Electronics) 137,300 5,492,000
BARR LABORATORIES*
Developer, manufacturer, and
marketer of generic prescription
drugs (Drugs and Health Care) 13,300 403,156
BARRETT RESOURCES*
Explorer, developer, and
producer of oil and gas (Energy) 30,600 1,027,013
BURR-BROWN*
Manufacturer of micro-electric
data devices for business
end-users (Technology) 166,400 6,567,600
CABOT OIL & GAS (CLASS A)
Explorer, developer, and
producer of oil and gas
(Energy) 73,600 1,186,800
CAREER EDUCATION*
Provider of private post-
secondary education (Schools) 85,400 1,910,825
- -------------
See footnotes on page 44.
41
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
CAREINSITE*
Provider of Internet messaging
services for physicians
(Technology) 20,400 $ 896,325
CAREY INTERNATIONAL*
Worldwide provider of
chauffeured vehicle service
(Transportation) 86,800 1,852,637
C-CUBE MICROSYSTEMS*
Provider of digital video
compression and decompression
circuits and systems (Technology) 26,300 1,171,994
COGNEX*
Manufacturer of machine
vision systems (Electronics) 74,100 2,216,053
CONCORD COMMUNICATIONS*
Provider of performance analysis
for computer network operations
(Telecommunications) 9,800 509,294
COPART*
Auctioneer of damaged
vehicles for insurance
companies (Retailing) 112,800 2,615,550
CORPORATE EXECUTIVE BOARD*
Worldwide provider of
consulting services for
corporations
(Consulting Services) 27,000 1,013,344
COSTAR GROUP*
Provider of digitized photographs
and floor plan images to the
commercial real estate industry
(Industrial Goods and Services) 83,510 2,035,556
CSGSYSTEMS INTERNATIONAL*
Provider of automation
for customer care and billing
services (Business Services) 113,300 3,898,228
DEVRY*
Owner and manager of higher
education systems (Schools) 81,600 1,718,700
DOUBLECLICK*
Provider of Internet advertising
solutions for marketers and Web
publishers (Consumer Goods
and Services) 18,400 2,574,275
DRUG EMPORIUM*
Pharmacy owner and operator
(Retailing) 19,500 89,578
DURA PHARMACEUTICALS*
Developer and retailer of
prescription pharmaceutical
products for the treatment
of allergies, asthma, pneumonia,
and related respiratory conditions
(Drugs and Health Care) 120,600 1,541,419
ENGAGE TECHNOLOGIES*
Provider of profile-driven
Internet marketing solutions
(Computer Software) 68,100 2,394,141
EXAR*
Designer and marketer of
electronic components used
in communications and video
and imaging products
(Manufacturing) 33,700 1,219,519
EXPEDITORS INTERNATIONAL
OF WASHINGTON
Transportation provider
(Transportation) 48,800 1,825,425
FORRESTER RESEARCH*
Independent research company
which studies changes in future
technology and its impact on
businesses, consumers, and
society (Consulting Services) 35,700 1,694,634
FORWARD AIR*
Provider of transportation
services to the airline industry
(Transportation) 19,600 580,650
GENERAL SEMICONDUCTOR*
Designer and manufacturer
of power semiconductors
(Technology) 281,400 2,954,700
HANGER ORTHOPEDIC GROUP*
Provider of orthopedic and
prosthetic rehabilitation
services (Medical Products
and Technology) 7,800 96,037
INDUS INTERNATIONAL*
Worldwide developer and
marketer of management
software and implementation
services (Business Services) 232,400 1,445,238
INSIGHT COMMUNICATIONS*
Cable television operator (Media) 46,800 1,107,113
INSIGNIA FINANCIAL GROUP*
Provider of real estate
management services
(Financial Services) 67,299 534,186
INSO*
Marketer and developer of
textual information software
(Computer Software) 75,800 1,028,037
INTEGRATED ELECTRICAL SERVICES*
Provider of electrical contracting
and maintenance services
(Electronics) 65,100 707,962
ISSGROUP*
Provider of computer network
security monitoring, detection,
and response software
(Computer Software) 52,600 2,015,238
- -----------
See footnotes on page 44.
42
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
ITT EDUCATIONAL SERVICES*
Provider of technology-oriented
schooling (Schools) 123,400 $2,437,150
KEYSTONE AUTOMOTIVE INDUSTRIES*
Distributor of after-market
collision replacement parts for
automobiles and light trucks
(Distribution) 142,000 1,202,563
KLA-TENCOR*
Manufacturer of wafer
and metrology equipment
(Technology) 28,400 2,249,813
LEARNING TREE INTERNATIONAL*
Provider of education and
training for the information
technology industry
(Business Services) 39,500 724,578
MEMBERWORKS*
Provider of membership
service programs for various
industries (Consumer
Goods and Services) 121,700 3,255,475
METAMOR WORLDWIDE*
International provider of
information technology
and staffing services
(Business Services) 70,900 1,333,806
METRIS COMPANIES
Direct marketer of consumer
credit cards (Financial Services) 71,600 2,465,725
MICROCHIP TECHNOLOGY*
Supplier of field-programmable
microcontrollers (Technology) 63,400 4,222,044
MODIS PROFESSIONAL SERVICES*
Provider of temporary
personnel services
(Business Services) 303,700 3,397,644
NATIONAL INSTRUMENTS*
Provider of instrumentation
hardware and software
products for the engineering
and scientific industries
(Technology) 186,100 5,600,447
NFOWORLDWIDE*
International provider of
consulting services
(Business Services) 89,400 994,575
NOVA*
Provider of transaction
processing services
(Business Services) 231,972 6,031,272
NOVELLUS SYSTEMS*
Manufacturer of wafer
fabrication systems for the
disposition of thin films
(Electronics) 51,300 3,974,147
NOVEN PHARMACEUTICALS*
Developer of drug delivery
systems and technologies
(Medical Products and
Technology) 51,300 504,984
OM GROUP
Producer of specialty
chemicals (Chemicals) 128,400 4,815,000
OMNICARE
Provider of pharmaceutical
services to long-term care
institutions (Drugs and
Health Care) 120,100 1,110,925
PHOTON DYNAMICS*
Provider of inspection and repair
systems for the flat panel display
manufacturing industry
(Technology) 37,700 1,147,494
PLUG POWER*
Developer of electricity
generation systems
(Electrical Utilities) 10,000 158,125
PREMIER PARKS*
Owner and operator of
regional theme parks
(Leisure and Hotels 204,400 5,914,825
PRE-PAID LEGAL SERVICES*
Underwriter and marketer
of legal service plans
(Business Services) 61,500 1,491,375
PRIDE INTERNATIONAL*
Provider of oil and gas
well services (Energy) 69,400 954,250
PRIMARK*
Provider of information
through software and
databases (Business Services) 75,700 1,920,887
PRISON REALTY TRUST
Real estate investment trust
investing in prisons
(Construction and Property) 281,900 2,871,856
PROFESSIONAL DETAILING*
Provider of consulting services
to the pharmaceutical industry
(Business Services) 81,650 2,041,250
PROFIT RECOVERY GROUP INTERNATIONAL*
Provider of financial
services (Financial Services) 51,100 2,103,084
PROVANT*
Provider of training and
development services
(Business Services) 198,500 3,498,563
- ------------
See footnotes on page 44.
43
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Smaller Companies Fund
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
PSS WORLD MEDICAL*
Distributor of medical
supplies, equipment, and
pharmaceuticals (Drugs
and Health Care) 315,000 $ 2,456,016
RENEX*
Provider of dialysis and
ancillary services
(Drugs and Health Care) 76,300 338,581
SANTA FE SNYDER*
Explorer, producer, and
developer of oil and gas
(Resources) 168,900 1,456,763
SCHEIN PHARMACEUTICAL*
Developer, manufacturer,
and vendor of generic
pharmaceuticals
(Drugs and Health Care) 27,200 231,200
SITEL*
Telemarketer
(Consumer Goods and Services) 55,700 250,650
STRUCTURAL DYNAMICS RESEARCH*
Developer of mechanical design
software (Computer Software) 89,400 888,412
SUNGARD DATA SYSTEMS*
Provider of computer disaster
recovery services, as well as
health care information and
investment support systems
(Computer Software) 94,000 2,297,125
TEKELEC*
Provider of telecommunication
switching equipment
(Telecommunications) 91,900 1,163,109
TELESPECTRUM WORLDWIDE*
Provider of direct marketing
and customer care services to
Fortune 500 companies in
diversified industries
(Business Services) 38,700 162,056
THQ*
Worldwide provider of interactive
entertainment software
(Technology) 24,800 1,019,900
TOTAL RENAL CARE HOLDINGS*
Provider of dialysis services
(Drugs and Health Care) 38,299 280,061
TRANSACTION SYSTEMS ARCHITECTS
(CLASS A)*
Worldwide developer and
marketer of software products
for electronic funds transfer
(Technology) 109,700 3,376,703
TRANSWITCH*
International provider of digital
and mixed-signal semiconductor
solutions for the telecommuni-
cation and data communication
industries (Telecommunications) 13,000 611,406
TRIANGLE PHARMACEUTICALS*
Developer of new drugs,
primarily in the antiviral area
(Drugs and Health Care) 47,900 775,381
U.S. FOODSERVICE*
Distributor of food and
related products
(Business Services) 293,300 5,627,694
UCAR INTERNATIONAL*
Manufacturer of graphite
and carbon electrodes
(Capital Goods) 154,400 3,020,450
UNIGRAPHICS SOLUTIONS (CLASS A)*
International provider of
services used for virtual
product development
(Business Services) 89,500 1,929,844
VEECO INSTRUMENTS
Ion beam etching and
surface measurement systems
for disk drive heads (Electronics) 13,900 472,166
VERTICALNET*
Creator, owner, and operator
of Internet trade groups
(Technology) 21,400 1,197,063
VISIO*
Provider of business
diagramming and technical
drawing software
(Computer Software) 63,800 2,526,081
WASTE CONNECTIONS*
Provider of solid waste
collection, disposal, and
recycling services
(Industrial Goods and Services) 12,600 194,119
WILMAR INDUSTRIES*
Marketer and distributor of
repair and maintenance
products to the apartment
housing market (Retailing) 102,600 1,224,788
------------
175,711,150
------------
TOTAL INVESTMENTS 95.68%
(Cost $430,959,682) 508,696,928
OTHER ASSETS
LESS LIABILITIES 4.32% 22,959,528
------------
NET ASSETS 100.00% $531,656,456
============
- ---------------
* 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
For the fiscal year ended October 31, 1999, Seligman Henderson Global Technology
Fund posted a total return of 89.40%, based on the net asset value of Class A
shares, compared to 26.18% for the Lipper Global Funds Average, 109.20% for the
Lipper Science & Technology Funds Average, and 25.33% for the Morgan Stanley
Capital International World Index.
The global technology sector delivered outstanding performance during the fiscal
year ended October 31, 1999. In most market sectors around the world, the
disinflationary environment that has been prevalent around the globe has had a
negative effect on corporate earnings. The technology industry, however, has
continued to deliver strong earnings growth, and technology stock prices have
thus received a higher and higher scarcity premium.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
[PICTURE OMITTED]
WEST COAST TECHNOLOGY TEAM: (STANDING, FROM LEFT) MARIANNE HARLOW
(ADMINISTRATIVE ASSISTANT), PAUL WICK (PORTFOLIO MANAGER), (SEATED) PAUL
KRIEGER, PATRICK RENDA
[PICTURE OMITTED]
INTERNATIONAL TEAM: (FROM LEFT) EMMA PARKINSON, TIM WOOLLEY, DAVID MAGLIOCCO,
BRIAN ASHFORD-RUSSELL (PORTFOLIO MANAGER)
[PICTURE OMITTED]
EAST COAST TECHNOLOGY TEAM: (STANDING, FROM LEFT) LAWRENCE ROSSO, KEI YAMAMOTO,
SHANEAN AUSTIN (ADMINISTRATIVE ASSISTANT), (SEATED) STORM BOSWICK
PORTFOLIO STRATEGY
The Fund's "growth-at-a-reasonable-price" philosophy proved to be a prudent
approach during the period. The Fund has avoided investing in stocks with
price-to-earning ratios that we believe are too high, and has therefore largely
avoided the highly volatile Internet sector. While this strategy hurt the Fund's
relative performance during the first quarter of 1999, when the sector posted
spectacular gains, the Fund was also able to outperform its peers when these
stocks experienced a sharp pullback in May. The Fund's low exposure to this
sector has also allowed the Fund to be less volatile than many of its peers.
45
<PAGE>
INVESTMENT REPORT
Seligman Henderson Global Technology Fund
After gaining some liquidity during the summer, we entered the latter part of
the year fully invested. Asset allocation between different geographical areas
has remained relatively unchanged, but we markedly increased the Fund's exposure
to cyclical technology companies. The semiconductor industry is just one year
into what we believe will be a two- to three-year upswing, and we anticipate
continuing strong performance over the next 12 months.
UNITED STATES
Despite a dramatic selloff of Internet stocks over the summer, the US technology
sector, after an initial setback, performed well, with the Pacific Stock
Exchange Technology Index rising nearly 30% during the second half of the fiscal
year alone. Communications stocks continued to rise strongly as a result of
surging demand for infrastructure, and frenetic merger/acquisition activity
among carriers. Semiconductor companies performed well as orders surged, causing
their stock prices to rise dramatically. Although Y2K may cause some disruption
in demand, most investors seem willing to look past what we believe should be
only a brief hiatus in this momentum.
EUROPE
In Europe, initial nervousness about Y2K seems to have subsided. The Morgan
Stanley Eurotech Index rose 60% during the fiscal year, led by the strength of
wireless stocks and enthusiasm regarding the recovery prospects for some of the
more cyclical technology companies. There is increasing evidence that demand for
technology products and services in Europe will accelerate as adoption rates
begin to move toward the more advanced levels prevalent in the US.
ASIA
Asia also lags far behind the US in terms of demand for technology but, with
recovery solidly underway, this appears to be changing rapidly. During the
fiscal year, Japanese and Taiwanese semiconductor shares enjoyed a particularly
strong rally.
OUTLOOK
Valuations for technology stocks have risen to levels not seen in many years.
However, the sector's earnings momentum remains strong and, relative to the
broader markets, has seldom been better. While we believe that investor
enthusiasm for these stocks calls for caution, we remain optimistic about the
outlook for global technology.
46
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
COUNTRY ALLOCATION
OCTOBER 31, 1999
MSCI
WORLD
FUND INDEX
-------- --------
CONTINENTAL EUROPE ................. 11.28% 21.54%
Austria ......................... -- 0.12
Belgium ......................... -- 0.56
Denmark ......................... -- 0.37
Finland ......................... 1.52 1.00
France .......................... 2.91 4.54
Germany ......................... 2.29 4.54
Ireland ......................... -- 0.23
Italy ........................... -- 1.81
Luxembourg ...................... 0.83 --
Netherlands ..................... 3.73 2.55
Norway .......................... -- 0.18
Portugal ........................ -- 0.23
Spain ........................... -- 1.28
Sweden .......................... -- 1.09
Switzerland ..................... -- 3.04
JAPAN .............................. 11.58 13.59
PACIFIC ............................ 6.98 2.74
Australia ....................... 1.07 1.14
Hong Kong ....................... -- 1.04
New Zealand ..................... -- 0.08
Singapore ....................... 3.51 0.48
South Korea ..................... 0.79 --
Taiwan .......................... 1.61 --
UNITED KINGDOM ..................... 6.33 9.66
UNITED STATES ...................... 52.95 50.45
OTHER .............................. 8.19 2.02
Canada .......................... -- 2.02
Israel .......................... 8.19 --
OTHER ASSETS LESS LIABILITIES ...... 2.69 --
---------- ----------
TOTAL 100.00% 100.00%
========== ==========
LARGEST INDUSTRIES
OCTOBER 31, 1999
[THE FOLLOWING REPRESENTS A CHART]
<TABLE>
<CAPTION>
COMPUTER SOFTWARE SEMICONDUCTORS ELECTRONICS ELECTRONICS CAPITAL EQUIPMENT TELECOMMUNICATIONS
<S> <C> <C> <C> <C>
24.35% 13.76% 12.09% 10.59% 8.52%
$297,290,791 $168,035,995 $147,597,447 $129,289,189 $104,032,903
</TABLE>
REGIONAL ALLOCATION
OCTOBER 31, 1999
OTHER ASSETS LESS LIABILITIES 2.69%
UNITED STATES 52.95%
CONTINENTAL EUROPE 11.28%
UNITED KINGDOM 6.33%
JAPAN 11.58%
PACIFIC 6.98%
OTHER 8.19%
LARGEST PORTFOLIO HOLDINGS
OCTOBER 31, 1999
SECURITY VALUE
- ----------- ------------
Check Point Software
Technologies (Israel) .................. $40,479,687
Murata Manufacturing (Japan) ............. 36,011,134
Lattice Semiconductor (US) ............... 35,406,250
Orbotech (Israel) ........................ 31,350,000
Compuware (US) ........................... 27,781,250
Amkor Technology (US) .................... 26,121,875
Venture Manufacturing (Singapore) ........ 25,324,345
Synopsys (US) ............................ 23,355,469
Microsoft (US) ........................... 23,140,625
Amdocs (US) .............................. 22,695,000
47
<PAGE>
PERFORMANCE AND PORTFOLIO OVERVIEW
Seligman Henderson Global Technology Fund
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
AVERAGE ANNUAL
----------------------------------------------------------
CLASS C CLASS B
SINCE SINCE SINCE
INCEPTION SIX ONE FIVE INCEPTION INCEPTION
5/27/99* MONTHS* YEAR YEARS 5/23/94 4/22/96
--------- ------- ---- ----- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge n/a 33.87% 80.44% 28.41% 29.54% n/a
Without Sales Charge n/a 40.55 89.40 29.68 30.72 n/a
CLASS B**
With CDSC+ n/a 35.00 83.10 n/a n/a 27.39%
Without CDSC n/a 40.00 88.10 n/a n/a 27.85
CLASS C**
With Sales Charge and CDSC 34.72% n/a n/a n/a n/a n/a
Without Sales Charge and CDSC 37.05 n/a n/a n/a n/a n/a
CLASS D**
With 1% CDSC n/a 39.08 87.17 n/a n/a n/a
Without CDSC n/a 40.08 88.17 28.63 29.67 n/a
LIPPER GLOBAL FUNDS AVERAGE*** 8.92 5.85 26.18 14.40 14.06++ 14.49o
LIPPER SCIENCE &
TECHNOLOGY FUNDS AVERAGE*** 33.71++ 31.84 109.20 36.73 37.34++ 36.32o
MSCI WORLD INDEX*** 8.59++ 4.64 25.33 16.92 16.55+++ 17.30o
</TABLE>
NET ASSET VALUE
OCTOBER 31, 1999 APRIL 30, 1999 OCTOBER 31, 1998
---------------- -------------- ----------------
CLASS A $23.36 $16.62 $12.48
CLASS B 22.26 15.90 11.98
CLASS C 22.23 n/a n/a
CLASS D 22.23 15.87 11.96
CAPITAL GAIN INFORMATION
FOR THE YEAR ENDED OCTOBER 31, 1999
PAID $0.158
REALIZED 4.918
UNREALIZED 7.530oo
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 per share 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 C shares are calculated with and without the effect of the initial
1% maximum sales charge and the 1% CDSC, charged on redemptions made
within 18 months of the date of purchase. 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.
++ From May 31, 1999.
o From April 30, 1996.
oo Represents the per share amount of net unrealized appreciation of
portfolio securities as of October 31, 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 October 31, 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 ITS PRINTED FORM]
GLOBAL TECHNOLOGY FUND
Class A Class A Class D MSCI Lipper Lipper
With Without Without World Global Funds Sci. & Tech.
Sales Charge Sales Charge CDSC Index Average Funds Average
------------ ------------ ------ ----- ------------ -------------
5/23/94 9520 10000 10000 10000 10000 10000
7/31/94 9613 10098 10084 10165 10089 9832
10/31/94 11160 11723 11681 10491 10435 11738
1/31/95 10695 11234 11150 9987 9633 11412
4/30/95 13264 13933 13821 10997 10372 13316
7/31/95 16856 17706 17523 11649 11339 16766
10/31/95 17556 18441 18216 11544 11213 17171
1/31/96 15895 16697 16458 12523 11953 16756
4/30/96 17535 18419 18119 13117 12726 18943
7/31/96 15004 15760 15477 12735 12312 16630
10/31/96 16269 17090 16745 13487 13023 19388
1/31/97 19981 20988 20535 14191 13979 21829
4/30/97 18571 19507 19055 14537 13989 19099
7/31/97 23634 24826 24204 16958 16251 24788
10/31/97 21779 22877 22241 15813 15290 23777
1/31/98 21113 22178 21506 16751 15683 23577
4/30/98 25170 26439 25588 18829 17882 28109
7/31/98 23753 24951 24093 19012 17684 27682
10/31/98 21606 22696 21863 18293 16205 26819
1/31/99 28887 30344 29184 20782 18325 40698
4/30/99 29115 30583 29369 21911 19316 42556
7/31/99 35491 37281 35735 22038 19833 46412
10/31/99 40922 42985 41139 22928 20446 56105
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 performances of Class B and Class C 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 OCTOBER 31, 1999
SHARES
-------------------------------
HOLDINGS
ADDITIONS INCREASE 10/31/99
- ------------- ------------ ------------
Adaptec (US) ............................... 500,000 500,000
Amdocs (US) ................................ 816,000 816,000
Compuware (US) ............................. 600,000 1,000,000
Epcos (Germany) ............................ 220,000 220,000
Gilat Satellite Networks
(Israel) ............................... 200,000 200,000
LTX (US) ................................... 600,000 600,000
Navigant Consulting (US) ................... 300,000 300,000
Rogers Communications (US) ................. 500,000 500,000
SunGard Data Systems (US) .................. 500,000 500,000
Symantec (US) .............................. 300,000 300,000
SHARES
--------------------------------
HOLDINGS
REDUCTIONS DECREASE 10/31/99
- --------------- ------------- -------------
Check Point Software
Technologies (Israel) .................. 150,000 350,000
Comdisco (US) .............................. 296,900 75,000
DII Group (US) ............................. 400,000 200,000
Electronic Arts (US) ....................... 150,000 200,000
Global TeleSystems
Group (US) ............................. 240,000 --
KLA-Tencor (US) ............................ 300,000 --
Learning Company (US) ...................... 600,000 --
Lexmark International
Group (Class A) (US) ................... 105,000 (1) 75,000
Novell (US) ................................ 317,500 --
PRI Automation (US) ........................ 200,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
- ------------------
(1) Includes 80,000 shares received as a result of a 2-for-1 stock split.
49
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- ------------
COMMON STOCKS 97.31%
AUSTRALIA 1.07%
COCHLEAR
Developer and marketer
of hearing aids (Medical
Products and Technology) 1,200,000 $13,093,812
-----------
FINLAND 1.52%
NOKIA
Developer and manufacturer
of cellular phones and
base stations
(Telecommunications) 161,800 18,561,434
-----------
FRANCE 2.91%
ALTRAN TECHNOLOGIES
Provider of consulting services
(Computer and Business Services) 33,000 11,338,680
RHONE-POULENC
Manufacturer of chemicals,
polymers, fibers, pharmaceuticals,
and agricultural chemicals
(Medical Products and
Technology) 140,000 7,852,426
STMICROELECTRONICS
Manufacturer of semiconductor
circuits for the automotive,
computer, and
telecommunications industries
(Electronics) 40,250 3,543,371
STMICROELECTRONICS (NY SHARES)
Manufacturer of semiconductor
circuits for the automotive,
computer, and
telecommunications industries
(Electronics) 140,000 12,722,500
-----------
35,456,977
-----------
GERMANY 2.29%
ELMOS SEMICONDUCTOR*
Provider of analog and
mixed-signal circuits for
the automotive industry
(Semiconductors) 218,840 5,168,195
EPCOS*
Provider of circuits and
components for the electronics
and telecommunications
industries (Telecommunications) 220,000 8,999,505
MANNESMANN
Manufacturer of plant and
machinery equipment; automotive
optical inspection systems
(Machinery and Equipment) 89,400 13,827,123
------------
27,994,823
------------
ISRAEL 8.19%
CHECK POINT SOFTWARE TECHNOLOGIES*
Developer of network "firewall"
security systems
(Computer Software) 350,000 40,479,687
ECI TELECOM
Provider of digital
telecommunications and
data transmission systems
(Communications
Infrastructure) 200,000 5,800,000
GILAT SATELLITE NETWORKS*
Provider of telecom-
munication equipment
(Telecommunications) 200,000 10,412,500
ORBOTECH*
Manufacturer of automated
optical inspection systems
for circuit boards and
flat panel displays (Electronics
Capital Equipment) 400,000 31,350,000
TECNOMATIX TECHNOLOGIES*+
Developer and retailer of
computer-aided production
engineering software
(Computer Software) 550,000 11,962,500
------------
100,004,687
------------
JAPAN 11.58%
CANON
Manufacturer of printers,
copiers, cameras, and video
equipment (Electronics) 300,000 8,494,097
FUJITSU
Provider of semiconductors,
computers, and
communication equipment
(Semiconductors) 590,000 17,780,977
GEOMATEC
Manufacturer and marketer of
flat panel display boards used
for lap-top computers and automobile
navigation systems (Electronics) 40,300 665,285
HIROSE ELECTRONICS
Manufacturer of specialized
connectors (Electronics) 110,800 19,344,006
MURATA MANUFACTURING
Manufacturer of components
used in wireless communication
(Electronics) 280,000 36,011,134
RICOH
Manufacturer of office
equipment (Machinery and
Equipment) 310,000 5,061,042
- -------------
See footnones on page 54.
50
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
----------- ------------
JAPAN (CONTINUED)
ROHM
Producer of custom
linear integrated circuits
(Semiconductors) 80,000 $ 17,967,175
SECOM
Provider of comprehensive
security services (Computer
and Business Services) 109,000 11,696,132
SECOM (RFDLINE)*
Provider of comprehensive
security services (Computer
and Business Services) 109,000 11,612,439
SHARP
Manufacturer of electronics
(Electronics) 800,000 12,745,945
------------
141,378,232
------------
LUXEMBOURG 0.83%
MILLICOM INTERNATIONAL CELLULAR*
Cellular services operator
(Telecommunications) 50,000 1,675,000
SBS BROADCASTING*
Television and radio
broadcaster (Media) 225,000 8,240,625
UNITED CUSTOMER MANAGEMENT
SOLUTIONS*
Provider of services for the
telecommunications industry
(Telecommunications) 5,860 205,100
------------
10,120,725
------------
NETHERLANDS 3.73%
ASM LITHOGRAPHY HOLDING*
Manufacturer of semiconductor
production equipment
(Electronics Capital
Equipment) 287,000 20,685,377
CMG
Information technology
consulting (Computer and
Business Services) 250,000 9,754,766
KONINKLIJKE (ROYAL)
PHILIPS ELECTRONICS
Manufacturer of consumer
and industrial electronics
(Electronics) 147,200 15,131,314
------------
45,571,457
------------
SINGAPORE 3.51%
CHARTERED SEMICONDUCTOR
MANUFACTURING (ADRS)*
Manufacturer of semicondutors;
producer of digital logic and
memory chips (Semiconductors) 130,000 4,314,375
SINGAPORE (CONTINUED)
CREATIVE TECHNOLOGY
Provider of PCaudio and
graphics products
(Computer Hardware/
Peripherals) 1,100,000 13,234,375
VENTURE MANUFACTURING
Contract manufacturer
for the electronics industry
(Electronics) 2,843,000 25,324,345
------------
42,873,095
------------
SOUTH KOREA 0.79%
SAEHAN PRECISION
Producer of deck
mechanisms used in
car stereos and compact
disc players (Electronics) 1,500 23,572
SAMSUNG ELECTRONICS (GDRS)
(1/2 NON-VOTING)*
Manufacturer of consumer
electronics and semiconductors
(Electronics) 115,798 9,611,234
------------
9,634,806
------------
TAIWAN 1.61%
HON HAI PRECISION INDUSTRY (GDRS)*
Provider of electronic connectors
and cable assemblies (Electronics
Capital Equipment) 593,100 9,623,047
SILICONWARE PRECISION
INDUSTRIES (GDRS)*
Packaging of electronic
components (Electronics
Capital Equipment) 762,600 8,217,015
YAGEO (GDRS)*
Manufacturer of passive
components (Electronics) 323,263 1,736,504
YAGEO (GDRS)*+
Manufacturer of passive
components (Electronics) 9,292 49,915
------------
19,626,481
------------
UNITED KINGDOM 6.33%
ARM HOLDINGS*
Designer of microprocessors
and circuits for the electronics
industry (Semiconductors) 214,320 6,048,242
CABLE & WIRELESS
Provider of global
telecommunications services
(Telecommunications) 514,000 6,010,826
- -------------
See footnones on page 54.
51
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
------ -----
UNITED KINGDOM (CONTINUED)
CELLTECH*
Pharmaceutical company
active in the development
and research of new
therapeutic products
(Medical Products and
Technology) 404,800 $ 3,033,902
COLT TELECOM GROUP*
Provider of telecommunications
services (Telecommunications) 410,000 12,278,021
INVENSYS
Engineering company offering
services to the value-added
controls and automation
industry (Computer and
Business Services) 1,300,000 6,399,357
LINX PRINTING TECHNOLOGIES
Manufacturer of specialized
printers (Miscellaneous) 145,000 587,464
LOGICA
Supplier of computer
services (Computer
and Business Services) 630,375 9,734,012
MISYS
Provider of computer
services, and software
and hardware solutions
(Computer Software) 1,412,300 11,826,801
SAGE GROUP
Publisher and distributor of
accounting software for
personal computers
(Computer Software) 187,500 9,608,896
VODAFONE GROUP
Cellular services operator
(Telecommunications) 2,515,055 11,739,834
------------
77,267,355
------------
UNITED STATES 52.95%
3DO*
Developer of entertainment
software (Computer Software) 500,000 3,765,625
ACCLAIM ENTERTAINMENT*
Developer of entertainment
software (Computer Software) 500,000 3,546,875
ACTIVISION*
Developer of entertainment
software (Computer Software) 500,000 7,078,125
ADAPTEC*
Manufacturer of computer
input-output systems
(Computer Hardware/
Peripherals) 500,000 22,484,375
AMDOCS
Provider of software solutions for
the telecommunications industry
(Computer and Business
Services) 816,000 22,695,000
AMERICAN POWER CONVERSION*
Provider of back-up power
supply equipment for
computers (Computer
Hardware/Peripherals) 900,000 20,165,625
AMKOR TECHNOLOGY*
Provider of semiconductor
packaging and test services
(Semiconductors) 1,300,000 26,121,875
APEX*
Manufacturer of switching
systems for computer
network administrators
(Computer Hardware/
Peripherals) 500,000 8,578,125
APPLIED POWER (CLASS A)
Provider of tools and
equipment for the computer
and telecommunications
industries (Machinery and
Equipment) 200,000 5,812,500
ARTESYN TECHNOLOGIES*
Provider of electronic products
for the communications
industry (Communications
Infrastructure) 250,000 4,945,312
AUTODESK
Developer of software for
architectural and mechanical
design, data management,
and mapping (Computer
Software) 350,000 6,540,625
AVNET
Distributor of computer products
and semiconductors
(Electronics) 40,400 2,194,225
BMC SOFTWARE*
Developer of mainframe
utility software
(Computer Software) 250,000 16,039,062
C-CUBE MICROSYSTEMS*
Provider of digital video
compression and
decompression circuits and
systems (Semiconductors) 350,000 15,596,875
CITRIX SYSTEMS*
Applications software supplier
(Computer Software) 100,000 6,409,375
- -------------
See footnones on page 54.
52
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
COGNEX*
Manufacturer of machine
vision systems (Electronics
Capital Equipment) 300,000 $8,971,875
COMDISCO
A leading computer hardware
leasing company (Computer
Hardware/Peripherals) 75,000 1,514,063
COMPUTER ASSOCIATES INTERNATIONAL
Developer of software utilities
and databases
(Computer Software) 150,000 8,475,000
COMPUWARE*
Provider of mainframe software
and consulting services
(Computer Software) 1,000,000 27,781,250
CREDENCE SYSTEMS*
Manufacturer of automated
semiconductor test
equipment (Electronics
Capital Equipment) 200,000 9,112,500
CSGSYSTEMS INTERNATIONAL*
Provider of customer service
for the media and
telecommunications industries
(Computer and
Business Services) 200,000 6,881,250
DALLAS SEMICONDUCTOR
Manufacturer of mixed-signal
integrated circuits
(Semiconductors) 200,000 11,775,000
DII GROUP*
Provider of contract
manufacturing services
(Contract Manufacturing/
Circuit Boards) 200,000 7,206,250
DSP COMMUNICATIONS*
Developer of chipsets used in
wireless communication
handsets (Communications
Infrastructure) 200,000 7,037,500
ECTEL*
Provider of network monitoring
for the telecommunications
industry and government
agencies (Telecommunications) 600,000 7,331,250
ELECTRO SCIENTIFIC INDUSTRIES*
Manufacturer of memory circuit
repair systems and circuit board
drilling systems (Electronics
Capital Equipment) 250,000 13,515,625
ELECTRONIC ARTS*
Developer, marketer, and
distributor of entertainment
software (Computer Software) 200,000 16,156,250
ELECTRONICS FOR IMAGING*
Manufacturer of peripherals for
color printers and copiers
(Computer Hardware/
Peripherals) 500,000 20,140,625
ENTRUST TECHNOLOGIES*
Provider of computer data
security (Computer and
Business Services) 200,000 5,018,750
HADCO*
Manufacturer of complex
printed circuit boards
(Contract Manufacturing) 200,000 7,350,000
HNC SOFTWARE*
Developer and vendor of
software for mission-critical
decision applications
(Computer Software) 300,000 11,990,625
LATTICE SEMICONDUCTOR*
Designer and manufacturer of
programmable logic devices
(Semiconductors) 1,000,000 35,406,250
LEXMARK INTERNATIONAL
GROUP (CLASS A)*
Manufacturer of laser and
inkjet printers and cartridges
(Computer Hardware/
Peripherals) 75,000 5,854,688
LTX*
Provider of automatic test
equipment for the semiconductor
industry (Semiconductors) 600,000 9,543,750
MASTECH*
Provider of information
technology services
(Computer and Business
Services) 300,000 5,146,875
MICROCHIP TECHNOLOGY*
Supplier of field-programmable
micro-controllers
(Semiconductors) 275,000 18,313,281
MICROSOFT*
Provider of personal computer
operating system and
application software products
(Computer Software) 250,000 23,140,625
NAVIGANT CONSULTING*
Provider of management
consulting services
(Computers and
Business Services) 300,000 8,568,750
- -------------
See footnones on page 54.
53
<PAGE>
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
Seligman Henderson Global Technology Fund
SHARES VALUE
------ -----
UNITED STATES (CONTINUED)
NOVELLUS SYSTEMS*
Manufacturer of wafer
fabrication systems for the
disposition of thin films
(Electronics Capital
Equipment) 200,000 $15,493,750
NTL*
Global provider of cable
television, Internet access,
and telephone services
(Telecommunications) 121,250 9,143,008
PACIFIC GATEWAY EXCHANGE*
International
telecommunications carrier
(Telecommunications) 335,600 7,613,925
PARAMETRIC TECHNOLOGY*
Developer of mechanical
design software
(Computer Software) 900,000 17,184,375
PEREGRINE SYSTEMS*
Developer and marketer of
applications software
(Computer Software) 275,000 12,082,813
RATIONAL SOFTWARE*
Provider of applications
development and test software
(Computer Software) 400,000 17,075,000
RESEARCH IN MOTION*
Provider of telecommunications
equipment (Computer Software) 198,000 6,069,938
ROGERS COMMUNICATIONS (CLASS B)*
Provider of telecommunications
services (Telecommunications) 500,000 10,062,500
SCI SYSTEMS*
Manufacturer of
electronic components
(Contract Manufacturing/
Circuit Boards) 225,000 11,109,375
SMART MODULAR TECHNOLOGIES*
Assembler of memory modules
(Contract Manufacturing/
Circuit Boards) 550,000 20,435,938
SUNGARD DATA SYSTEMS*
Provider of computer disaster
recovery services, as well as
health care information and
investment support systems
(Computer and Business Services) 500,000 12,218,750
SYMANTEC*
Developer, marketer, and
supporter of application
development tools and
systems software products
(Computer Software) 300,000 14,315,625
SYNOPSYS*
Developer of integrated
circuit design software
(Computer Software) 375,000 23,355,469
TERADYNE*
Manufacturer of automated
semiconductor test equipment
(Electronics Capital Equipment) 320,000 12,320,000
TSIINTERNATIONAL SOFTWARE*
Worldwide provider of software
for enterprise application
integration (Computer Software) 100,000 2,406,250
ZIFF-DAVIS*
Integrated media company
focused on computer and
Internet-related technology
(Media) 500,000 7,468,750
---------------
646,561,097
---------------
TOTAL INVESTMENTS 97.31%
(Cost $787,680,354) 1,188,144,981
OTHER ASSETS
LESS LIABILITIES 2.69% 32,696,787
---------------
NET ASSETS 100.00% $1,220,841,768
===============
- ----------------
* Non-income producing security.
+ Affiliated issuers (a Fund's 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
OCTOBER 31, 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* .................................... $85,368,662 $58,198,150 $223,277,301 $508,696,928 $1,188,144,981
Bonds ............................................. -- -- 131,547 -- --
------------- ------------- -------------- -------------- ---------------
Total investments .................................... 85,368,662 58,198,150 223,408,848 508,696,928 1,188,144,981
Cash ................................................. 8,841,656 2,089,204 10,336,451 15,850,838 37,824,906
Receivable for securities sold ....................... 1,059,950 -- 1,029,807 10,077,777 10,125,658
Receivable for dividends and interest ................ 208,640 109,673 280,344 2,216,462 367,682
Receivable for Capital Stock sold .................... 105,979 105,300 772,586 906,423 3,024,138
Expenses prepaid to shareholder service agent ........ 35,600 43,824 74,328 214,866 309,784
Unrealized appreciation on forward
currency contracts ................................. 1,858 -- -- -- 4,020
Other ................................................ 2,898 12,691 34,792 18,374 22,550
------------- ------------- -------------- -------------- ---------------
TOTAL ASSETS ......................................... 95,625,243 60,558,842 235,937,156 537,981,668 1,239,823,719
------------- ------------- -------------- -------------- ---------------
LIABILITIES:
Payable for securities purchased ..................... 1,622,126 -- 70,000 1,698,770 14,458,500
Payable for Capital Stock repurchased ................ 420,718 232,269 406,573 3,163,533 2,747,146
Unrealized depreciation on forward
currency contracts ................................. 46,925 -- 74,523 220,171 8,183
Accrued expenses and other ........................... 249,603 213,960 434,357 1,242,738 1,768,122
------------- ------------- -------------- -------------- ---------------
TOTAL LIABILITIES .................................... 2,339,372 446,229 985,453 6,325,212 18,981,951
------------- ------------- -------------- -------------- ---------------
NET ASSETS ........................................... $93,285,871 $60,112,613 $234,951,703 $531,656,456 $1,220,841,768
============= ============= ============== ============== ===============
COMPOSITION OF NET ASSETS:
Capital Stock, at par:
Class A ........................................... $ 2,085 $ 4,608 $ 9,403 $ 13,581 $ 34,042
Class B ........................................... 562 2,475 2,834 10,428 5,313
Class C ........................................... 67 47 84 24 287
Class D ........................................... 1,759 1,970 6,223 10,880 13,542
Additional paid-in capital ........................... 70,431,155 72,976,683 144,579,851 456,456,280 696,797,475
Accumulated net investment loss ...................... (509,284) (2,990) (4,974) (15,546) (11,719)
Undistributed/accumulated net realized gain
(loss) on investments .............................. 8,258,588 (18,428,372) 21,585,528 (2,291,559) 123,597,662
Net unrealized appreciation of investments ........... 14,955,562 6,166,626 70,070,650 74,212,092 396,960,827
Net unrealized appreciation (depreciation) on
translation of assets and liabilities denominated in
foreign currencies and forward currency contracts .. 145,377 (608,434) (1,297,896) 3,260,276 3,444,339
------------- ------------- -------------- -------------- ---------------
NET ASSETS ........................................... $93,285,871 $60,112,613 $234,951,703 $531,656,456 $1,220,841,768
============= ============= ============== ==============================
NET ASSETS:
Class A ........................................... $ 44,762,589 $ 30,822,267 $ 120,945,812 $ 213,728,577 $ 795,233,656
Class B ........................................... $ 11,433,511 $ 16,129,129 $ 35,343,921 $ 155,344,626 $ 118,262,041
Class C ........................................... $ 1,361,276 $ 306,872 $ 1,045,964 $ 363,102 $ 6,376,811
Class D ........................................... $ 35,728,495 $ 12,854,345 $ 77,616,006 $ 162,220,151 $ 300,969,260
SHARES OF CAPITAL STOCK OUTSTANDING:
Class A ........................................... 2,084,638 4,607,896 9,402,854 13,581,091 34,042,169
Class B ........................................... 562,495 2,474,563 2,834,414 10,427,427 5,313,168
Class C ........................................... 67,009 47,036 83,858 24,354 286,911
Class D ........................................... 1,758,726 1,970,346 6,222,857 10,880,367 13,541,818
NET ASSET VALUE PER SHARE:
CLASS A ........................................... $21.47 $6.69 $12.86 $15.74 $23.36
CLASS B ........................................... $20.33 $6.52 $12.47 $14.90 $22.26
CLASS C ........................................... $20.31 $6.52 $12.47 $14.91 $22.23
CLASS D ........................................... $20.31 $6.52 $12.47 $14.91 $22.23
</TABLE>
- ---------------
* Includes affiliated issuers (issuers in which a Fund's holdings represent
5% or more of the outstanding voting securities) with cost of $12,305,956
and value of $11,962,500 for the Global Technology Fund. See Notes to
Financial Statements.
55
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 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 ......................................... $ 1,571,089 $ 787,967 $ 1,991,054 $ 6,221,606 $ 3,297,745
Interest .......................................... 87,612 42,932 442,730 691,479 1,273,155
------------ ------------ ------------ ------------ -------------
Total Investment Income* .......................... 1,658,701 830,899 2,433,784 6,913,085 4,570,900
------------ ------------ ------------ ------------ -------------
EXPENSES:
Management fees ................................... 910,270 706,046 2,115,163 6,731,872 9,309,644
Distribution and service fees ..................... 582,129 364,874 1,296,802 4,697,424 4,735,730
Shareholder account services ...................... 255,958 287,062 535,796 1,861,157 1,817,616
Custody and related services ...................... 105,866 107,971 142,020 478,332 457,034
Registration ...................................... 85,065 66,255 56,367 199,720 214,242
Shareholder reports and communications ............ 68,941 90,936 105,828 429,458 456,824
Auditing and legal fees ........................... 53,413 44,103 64,157 130,388 150,152
Directors' fees and expenses ...................... 12,446 8,358 10,263 22,473 20,963
Miscellaneous ..................................... 5,161 3,725 8,682 46,033 25,014
------------ ------------ ------------ ------------ -------------
TOTAL EXPENSES .................................... 2,079,249 1,679,330 4,335,078 14,596,857 17,187,219
------------ ------------ ------------ ------------ -------------
NET INVESTMENT LOSS ............................... (420,548) (848,431) (1,901,294) (7,683,772) (12,616,319)
------------ ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain on investments** ................ 18,750,675 8,094,123 42,155,161 42,577,954 269,638,673
Net realized loss from foreign currency
transactions .................................... (1,640,773) (3,968,087) (2,467,696) (15,617,782) (7,781,701)
Net change in unrealized appreciation/depreciation
of investments .................................. 3,395,811 9,162,114 23,143,981 43,508,903 334,825,238
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities
denominated in foreign currencies and
forward currency contracts ...................... (1,966,628) 1,284,438 (1,226,719) 5,724,746 6,046,102
------------ ------------ ------------ ------------ -------------
NET GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS ................... 18,539,085 14,572,588 61,604,727 76,193,821 602,728,312
------------ ------------ ------------ ------------ -------------
INCREASE IN NET ASSETS
FROM OPERATIONS ................................. $18,118,537 $13,724,157 $59,703,433 $68,510,049 $590,111,993
============ ============ ============ ============ =============
- -------------
*Net of foreign taxes withheld as follows: ....... $128,261 $ 38,366 $109,051 $657,747 $ 313,896
** Includes net realized gain (loss) (including
effect of foreign currency transactions) from
sales of securities of affiliated issuers
as follows: .................................... -- 158,851 -- -- (2,025,067)
</TABLE>
See Notes to Financial Statements.
56
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS GLOBAL GROWTH
FUND GROWTH FUND OPPORTUNITIES FUND
-------------------------- ------------------------- -------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
-------------------------- ------------------------- -------------------------
1999 1998 1999 1998 1999 1998
----------- ------------ ------------- ----------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ............................ $ (420,548) $ (270,130) $ (848,431) $ (463,122) $ (1,901,294) $ (1,634,977)
Net realized gain (loss) on investments ........ 18,750,675 2,327,950 8,094,123 (17,519,924) 42,155,161 2,512,281
Net realized loss from foreign currency
transactions .................................. (1,640,773) (700,001) (3,968,087) (2,152,860) (2,467,696) (2,270,172)
Net change in unrealized appreciation/
depreciation of investments .................. 3,395,811 1,271,316 9,162,114 (5,035,191) 23,143,981 13,049,405
Net change in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign
currencies and forward currency contracts.. (1,966,628) 2,794,538 1,284,438 370,569 (1,226,719) 3,910,046
------------ ----------- ----------- ----------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ............................. 18,118,537 5,423,673 13,724,157 (24,800,528) 59,703,433 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 sales of shares .............. 26,062,825 31,997,082 14,540,876 16,380,254 18,258,862 18,783,225
Exchanged from associated Funds ................ 158,151,659 88,293,172 106,364,081 23,008,602 185,791,571 45,501,725
Value of shares issued in payment of
gain distributions ........................... -- 5,578,660 -- -- -- 7,815,652
------------ ----------- ----------- ----------- ----------- ------------
Total .......................................... 184,214,484 125,868,914 120,904,957 39,388,856 204,050,433 72,100,602
------------ ----------- ----------- ----------- ----------- ------------
Cost of shares repurchased ..................... (46,029,706) (35,685,343) (20,001,347) (24,472,050) (42,069,326) (45,304,359)
Exchanged into associated Funds ................(154,458,776) (91,156,355) (108,507,419) (40,262,856) (171,053,209) (42,076,479)
------------ ----------- ----------- ----------- ----------- ------------
Total ..........................................(200,488,482) (126,841,698) (128,508,766) (64,734,906) (213,122,535) (87,380,838)
------------ ------------ ------------ ------------ ------------ ------------
DECREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS ................... (16,273,998) (972,784) (7,603,809) (25,346,050) (9,072,102) (15,280,236)
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .............. 1,844,539 (1,992,701) 6,120,348 (50,146,578) 50,631,331 (8,350,871)
NET ASSETS:
Beginning of Year .............................. 91,441,332 93,434,033 53,992,265 104,138,843 184,320,372 192,671,243
------------ ------------ ------------ ------------ ------------ ------------
END OF YEAR ....................................$ 93,285,871 $ 91,441,332 $ 60,112,613 $ 53,992,265 $234,951,703 $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
------------------------- ---------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
------------------------- ---------------------------
1999 1998 1999 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss ........................... $ (7,683,772) $ (9,051,588) $ (12,616,319) $(10,680,516)
Net realized gain on investments .............. 42,577,954 142,339 269,638,673 47,415,066
Net realized loss from foreign
currency transactions ....................... (15,617,782) (16,429,116) (7,781,701) (858,280)
Net change in unrealized appreciation/
depreciation of investments ................. 43,508,903 (51,038,110) 334,825,238 (44,894,952)
Net change in unrealized appreciation/
depreciation on translation of assets and
liabilities denominated in foreign
currencies and forward currency contracts.. 5,724,746 19,214,602 6,046,102 5,026,539
------------ ------------ ------------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ............................. 68,510,049 (57,161,873) 590,111,993 (3,992,143)
------------ ------------ ------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A ..................................... -- (17,124,087) (5,913,696) (99,536,281)
Class B ..................................... -- (10,275,288) (770,289) (9,666,516)
Class D ..................................... -- (15,357,547) (2,409,219) (41,021,514)
------------- ------------ ------------- ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS ..... -- (42,756,922) (9,093,204) (150,224,311)
------------- ------------ ------------- ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares ............. 78,982,673 235,518,747 88,529,376 87,037,606
Exchanged from associated Funds ............... 308,577,971 278,615,891 819,082,576 324,384,416
Value of shares issued in payment of
gain distributions .......................... -- 39,842,965 8,515,941 140,309,675
------------- ------------ ------------- -----------
Total ......................................... 387,560,644 553,977,603 916,127,893 551,731,697
------------- ------------ ------------- -----------
Cost of shares repurchased .................... (392,209,872) (294,184,316) (197,005,648) (191,292,574)
Exchanged into associated Funds ............... (402,582,219) (342,118,332) (797,857,732) (356,849,274)
------------- ------------ ------------- -----------
Total ......................................... (794,792,091) (636,302,648) (994,863,380) (548,141,848)
------------- ------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS .................. (407,231,447) (82,325,045) (78,735,487) 3,589,849
------------- ------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS ............. (338,721,398) (182,243,840) 502,283,302 (150,626,605)
NET ASSETS:
Beginning of year ............................. 870,377,854 1,052,621,694 718,558,466 869,185,071
------------- ------------- -------------- ------------
END OF YEAR ................................... $531,656,456 $870,377,854 $1,220,841,768 $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 "Series") consists of five separate Funds: 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
Fund of the Series offers four 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. The Series began offering Class C shares on May 27, 1999. Class C
shares are sold with an initial sales charge of up to 1% and 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 18
months 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 four classes of shares for
each Fund 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 Series:
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 Fund may temporarily hold funds in
foreign currencies. The books and records of the Series 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 Series' 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 Series. 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
Series' 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 Series 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 Series 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 Series 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 or forward 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 Fund 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 Series' 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 -- Each Fund's income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares of that Fund based upon the relative
value of the shares of each class. Class-specific expenses, which include
distribution and service fees and any other items that are specifically
attributed to a particular class, are charged directly to such class. For the
year ended October 31, 1999, distribution and service fees were the only
class-specific expenses.
g. DISTRIBUTIONS TO SHAREHOLDERS -- The treatment for financial statement
purposes of distributions made to shareholders during the year from net
investment income or net realized gains may differ from their ultimate
treatment for federal income tax purposes. These differences primarily are
caused by differences in the timing of the recognition of certain components
of income, expense, or realized capital gain; and the recharacterization of
foreign exchange gains or losses to either ordinary income or realized
capital gains for federal income tax purposes. Where such differences are
permanent in nature, they are reclassified in the components of net assets
based on their ultimate characterization for federal income tax purposes. Any
such reclassifications will have no effect on net assets, results of
operations, or net asset value per share of any Fund of the Series. On
November 18, 1999, the International Fund, Global Growth Opportunities Fund,
and Global Technology Fund declared distributions per share of $1,728,
$1,171, and $2,446, respectively, from net realized long-term gains from
investment transactions. The capital gains were paid on November 23, 1999, to
shareholders of record on November 18, 1999.
3. PURCHASES AND SALES OF SECURITIES -- Purchases and sales of portfolio
securities, excluding short-term investments, for the year ended October 31,
1999, were as follows:
FUND PURCHASES SALES
- ------------------ ------------- -------------
International Fund $ 73,239,139 $ 91,179,411
Emerging Markets
Growth Fund 74,023,740 81,706,340
Global Growth
Opportunities Fund 129,989,106 139,018,126
Global Smaller
Companies Fund 401,287,893 756,826,886
Global Technology Fund 817,156,902 907,349,518
At October 31, 1999, each Fund's cost of investments for federal income tax
purposes was as follows: International Fund $70,293,520; Emerging Markets Growth
Fund $52,665,054; Global Growth Opportunities Fund $154,558,723; Global Smaller
Companies Fund $433,549,083; and Global Technology Fund $795,045,433. the tax
basis gross unrealized appreciation and depreciation of portfolio securities,
including the effects of foreign currency trans-lations, were as follows:
TOTAL TOTAL
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
- ------------------ -------------- -------------
International Fund $ 17,265,475 $ 2,190,333
Emerging Markets
Growth Fund 10,342,074 4,808,978
Global Growth
Opportunities Fund 75,188,596 6,338,471
Global Smaller
Companies Fund 116,577,817 41,429,972
Global Technology Fund 423,355,231 30,255,683
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. MANAGEMENT FEE, DISTRIBUTION SERVICES, AND OTHER TRANSACTIONS -- J. &W.
Seligman &Co. Incorporated (the "Manager") manages the affairs of the Series and
provides or arranges for the necessary personnel and facilities. The Manager
receives a fee, calculated daily and payable monthly, equal to 1.25% per annum
of the average daily net assets of the Emerging Markets Growth Fund and 1.00%
per annum of each of the other Fund's average daily net assets.
Effective July 1, 1998, Henderson Investment Management Limited (the
"Subadviser"), became subadviser to theSeries and is responsible for furnishing
investment advice, research, and assistance with respect to the Series'
international investments. Under the subadvisory agreement, the Manager pays the
Subadviser a subadvisory fee for each Fund 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 Series, all directors of the Series who
are employees or consultants of the Manager, and all personnel of the Series and
the Manager is paid by the Manager or by Henderson plc.
Seligman Advisors, Inc. (the "Distributor"), agent for the distribution of
each Fund's shares and an affiliate of the Manager, received the following
concessions after commissions were paid to dealers for sales of Class A and
Class C shares:
DISTRIBUTOR DEALER
FUND CONCESSIONS COMMISSIONS
- -------------------------- --------------- ---------------
International Fund $ 5,458 $ 49,094
Emerging Markets
Growth Fund 3,697 32,098
Global Growth
Opportunities Fund 14,013 118,505
Global Smaller
Companies Fund 26,432 209,700
Global Technology Fund 90,188 771,582
Each Fund of the Series 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 Series pursuant to the Plan. For the year
ended October 31, 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 $103,943, $68,209,
$279,246, $678,107, and $1,543,038, respectively, or 0.24%, 0.25%, 0.25%, 0.25%,
and 0.25%, respectively, per annum of the average daily net assets of each
Fund's Class A shares.
Under the Plan, with respect to Class B, Class C, 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, Class C, and Class D shares for which the organizations
are responsible; and, for Class C and Class D shares, 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 Series 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 Series 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 year ended October 31, 1999, fees incurred under the Plan, equivalent
to 1% per annum of the average daily net assets of Class B, Class C, and Class D
shares, were as follows:
FUND CLASS B CLASS C CLASS D
- ----------------------- ------------ ------------ -----------
International Fund $ 105,777 $ 1,361 $ 371,048
Emerging Markets
Growth Fund 162,219 709 133,737
Global Growth
Opportunities Fund 290,077 1,951 725,528
Global Smaller
Companies Fund 1,873,413 686 2,145,218
Global Technology Fund 826,302 9,367 2,357,023
The Distributor is entitled to retain any CDSC imposed on certain redemptions
of Class A and Class Cshares occurring within 18 months of purchase and on
redemptions of Class D shares occurring within one year of purchase. For the
year ended October 31, 1999, such charges were as follows:
FUND AMOUNT
- ----------------------- -------------
International Fund $ 11,185
Emerging Markets Growth Fund 9,177
Global Growth Opportunities Fund 11,732
Global Smaller Companies Fund 79,967
Global Technology Fund 58,539
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 from the Purchaser
based on the value of Class B shares sold. The aggregate of such payments
retained by the Distributor for the year ended October 31, 1999, were as
follows:
FUND AMOUNT
- --------------------------- -------------
International Fund $ 1,482
Emerging Markets Growth Fund 2,495
Global Growth Opportunities Fund 6,466
Global Smaller Companies Fund 11,862
Global Technology Fund 18,747
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Series, as well as distribution
and service fees pursuant to the Plan. For the year ended October 31, 1999,
Seligman Services, Inc. received commissions from the sale of shares of each
Fund and distribution and service fees, pursuant to the Plan, as follows:
DISTRIBUTION
FUND COMMISSIONS AND SERVICE FEES
- ----------------------- --------------- -----------------
International Fund $ -- $ 17,810
Emerging Markets
Growth Fund 1,112 5,507
Global Growth
Opportunities Fund 1,425 10,216
Global Smaller
Companies Fund 3,405 34,166
Global Technology Fund 19,032 110,774
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
FUND AMOUNT
- ----------------------- -------------
International Fund $ 249,459
Emerging Markets Growth Fund 287,062
Global Growth Opportunities Fund 535,796
Global Smaller Companies Fund 1,861,157
Global Technology Fund 1,782,186
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
The Series 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
selected Funds of the Series or other funds in the Seligman Group of Investment
Companies. Deferred fees and related accrued earnings are not deductible by the
Fund for federal income tax purposes until such amounts are paid. The cost of
such fees and earnings accrued thereon is included in directors' fees and
expenses, and the accumulated balances thereof at October 31, 1999, are included
in other liabilities, as follows:
FUND AMOUNT
- ----------------- -----------
International Fund $15,286
Emerging Markets GrowthFund 2,990
Global Growth Opportunities Fund 4,974
Global Smaller Companies Fund 15,546
Global Technology Fund 11,719
5. COMMITTED LINE OF CREDIT -- The Series is a participant in a joint $750
million committed line of credit that is shared by substantially all funds in
the Seligman Group of Investment Companies. Each 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%. Each
Fund incurs a commitment fee of 0.08% 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 in June 2000, but is renewable annually with
the consent of the participating banks.
During the year ended October 31, 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 year was $17,400,000. The interest
expense incurred for the year was $19,461, which is included in miscellaneous
expenses in the Statements of Operations.
6. CAPITAL LOSS CARRYFORWARD -- At October 31, 1999, the Emerging Markets Growth
Fund had a net capital loss carryforward for federal income tax purposes of
$18,873,104, which is available for offset 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 this Fund 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 Fund's holdings
represent 5% or more of the outstanding voting securities of the issuer. A
summary of the Series' transactions in the securities of these issuers during
the year ended October 31, 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 -- $ 158,851 -- --
=========== ========= ===========
GLOBAL TECHNOLOGY FUND
Ilion Group 1,616,914 -- 1,616,914 -- $(2,025,067) -- --
Tecnomatix Technologies 500,000 50,000 -- 550,000 -- -- $11,962,500
------------ --------- -----------
$ (2,025,067) -- $11,962,500
============ ========= ===========
</TABLE>
8. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS -- At October 31, 1999, the
Series 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:
Swiss francs 1,347,223 883,425 11/1/1999 885,283 $ 1,858
==========
Sales:
Japanese yen 275,000,000 2,639,409 2/14/2000 2,686,334 $ (46,925)
==========
GLOBAL GROWTH OPPORTUNITIES FUND
Sales:
Japanese yen 107,295,646 1,029,511 11/2/1999 1,029,807 $ (296)
Japanese yen 435,000,000 4,175,065 2/14/2000 4,249,292 (74,227)
----------
$ (74,523)
==========
GLOBAL SMALLER COMPANIES FUND
Japanese yen 204,359,785 1,960,511 11/1/1999 1,961,414 $ (903)
Japanese yen 1,285,000,000 12,333,237 2/14/2000 12,552,505 (219,268)
----------
$ (220,171)
==========
GLOBAL TECHNOLOGY FUND
Sales:
British pounds 1,903,084 3,119,725 11/2/1999 3,127,908 $ (8,183)
Japanese yen 1,440,000,000 13,892,909 11/30/1999 13,888,889 4,020
----------
$ (4,163)
==========
</TABLE>
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. CAPITAL STOCK SHARE TRANSACTIONS -- The Series 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 Fund of the Series. At
October 31, 1999, 400,000,000 shares were authorized for each Fund of the
Series, all at a par value of $.001 per share.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------
1999 1998
----------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
INTERNATIONAL FUND
Net proceeds from sales of shares ........................... 1,095,319 $ 21,487,420 1,132,123 $ 20,944,419
Exchanged from associated Funds ............................. 5,901,838 116,917,047 2,810,206 51,542,834
Shares issued in payment of gain distributions .............. -- -- 162,848 2,644,650
------------- -------------- ------------- -------------
Total ....................................................... 6,997,157 138,404,467 4,105,177 75,131,903
------------- -------------- ------------- -------------
Cost of shares repurchased .................................. (1,742,828) (34,371,872) (1,349,489) (24,740,448)
Exchanged into associated Funds ............................. (5,654,851) (112,527,431) (2,842,925) (52,470,373)
------------- -------------- ------------- -------------
Total ....................................................... (7,397,679) (146,899,303) (4,192,414) (77,210,821)
------------- -------------- ------------- -------------
Increase (Decrease) ......................................... (400,522) $ (8,494,836) (87,237) $ (2,078,918)
============= ============== ============= =============
EMERGING MARKETS GROWTH FUND
Net proceeds from sales of shares ........................... 1,788,524 $ 11,315,812 1,325,518 $ 9,097,908
Exchanged from associated Funds ............................. 15,826,581 98,080,245 3,141,179 19,937,244
------------- -------------- ------------- -------------
TOTAL ....................................................... 17,615,105 109,396,057 4,466,697 29,035,152
------------- -------------- ------------- -------------
Cost of shares repurchased .................................. (1,793,682) (10,963,262) (1,916,244) (12,803,905)
Exchanged into associated Funds ............................. (15,902,253) (98,730,263) (3,863,525) (25,474,706)
------------- -------------- ------------- -------------
Total ....................................................... (17,695,935) (109,693,525) (5,779,769) (38,278,611)
------------- -------------- ------------- -------------
Increase (Decrease) ......................................... (80,830) $ (297,468) (1,313,072) $ (9,243,459)
============= ============== ============= =============
GLOBAL GROWTH OPPORTUNITIES FUND
Net proceeds from sales of shares ........................... 682,316 $ 7,944,287 701,595 $ 7,080,116
Exchanged from associated Funds ............................. 12,811,882 153,308,328 2,882,396 29,284,180
Shares issued in payment of gain distributions .............. -- -- 500,843 4,427,520
------------- -------------- ------------- -------------
Total ....................................................... 13,494,198 161,252,615 4,084,834 40,791,816
------------- -------------- ------------- -------------
Cost of shares repurchased .................................. (1,875,950) (21,521,211) (2,727,222) (26,372,863)
Exchanged into associated Funds ............................. (12,392,854) (148,413,073) (3,027,589) (30,358,305)
------------- -------------- ------------- -------------
Total ....................................................... (14,268,804) (169,934,284) (5,754,811) (56,731,168)
------------- -------------- ------------- -------------
Increase (Decrease) ......................................... (774,606) $ (8,681,669) (1,669,977) $ (15,939,352)
============= ============== ============= =============
GLOBAL SMALLER COMPANIES FUND
Net proceeds from sales of shares ........................... 4,097,558 $ 60,446,431 10,022,623 $ 152,853,503
Exchanged from associated Funds ............................. 17,736,257 263,967,167 14,424,445 230,629,818
Shares issued in payment of gain distributions .............. -- -- 1,085,903 15,984,486
------------- -------------- ------------- -------------
Total ....................................................... 21,833,815 324,413,598 25,532,971 399,467,807
------------- -------------- ------------- -------------
Cost of shares repurchased .................................. (15,435,423) (225,980,538) (11,356,046) (175,015,238)
Exchanged into associated Funds ............................. (19,389,717) (288,930,398) (15,405,894) (247,200,113)
------------- -------------- ------------ -------------
Total ....................................................... (34,825,140) (514,910,936) (26,761,940) (422,215,351)
------------- -------------- ------------ -------------
Increase (Decrease) ......................................... (12,991,325) $ (190,497,338) (1,228,969) $ (22,747,544)
============= ============== ============ =============
GLOBAL TECHNOLOGY FUND
Net proceeds from sales of shares ........................... 3,184,382 $ 56,762,392 4,176,254 $ 56,563,795
Exchanged from associated Funds ............................. 37,258,549 675,984,238 15,149,055 198,014,893
Shares issued in payment of gain distributions .............. 415,346 5,536,574 7,189,429 93,006,394
------------- -------------- ------------ -------------
Total ....................................................... 40,858,277 738,283,204 26,514,738 347,585,082
------------- -------------- ------------ -------------
Cost of shares repurchased .................................. (8,111,852) (135,139,485) (10,448,450) (137,745,943)
Exchanged into associated Funds ............................. (36,851,427) (668,550,354) (16,445,590) (216,262,283)
------------- -------------- ------------ -------------
Total ....................................................... (44,963,279) (803,689,839) (26,894,040) (354,008,226)
------------- -------------- ------------ -------------
Increase (Decrease) ......................................... (4,105,002) $ (65,406,635) (379,302) $ (6,423,144)
============= ============== ============ =============
</TABLE>
* Commencement of offering of shares.
64
<PAGE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------
1999 1998
------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- -----------
INTERNATIONAL FUND
<S> <C> <C> <C> <C>
Net proceeds from sales of shares ........................... 56,286 $ 1,060,206 250,816 $ 4,648,002
Exchanged from associated Funds ............................. 149,372 2,879,236 297,215 5,569,000
Shares issued in payment of gain distributions .............. -- -- 26,671 416,868
----------- ------------ ---------- ------------
Total ....................................................... 205,658 3,939,442 574,702 10,633,870
----------- ------------ ---------- ------------
Cost of shares repurchased .................................. (77,779) (1,458,196) (58,028) (999,582)
Exchanged into associated Funds ............................. (146,265) (2,815,381) (302,774) (5,611,693)
----------- ------------ ---------- ------------
Total ....................................................... (224,044) (4,273,577) (360,802) (6,611,275)
----------- ------------ ---------- ------------
Increase (Decrease) ......................................... (18,386) $ (334,135) 213,900 $ 4,022,595
=========== ============ ========== ============
EMERGING MARKETS GROWTH FUND
Net proceeds from sales of shares ........................... 291,985 $ 1,783,007 570,569 $ 3,958,564
Exchanged from associated Funds ............................. 287,417 1,788,707 72,054 477,703
----------- ------------ ---------- ------------
TOTAL ....................................................... 579,402 3,571,714 642,623 4,436,267
----------- ------------ ---------- ------------
Cost of shares repurchased .................................. (679,988) (3,959,970) (720,647) (4,804,465)
Exchanged into associated Funds ............................. (575,603) (3,297,865) (737,349) (4,852,353)
----------- ------------ ---------- ------------
Total ....................................................... (1,255,591) (7,257,835) (1,457,996) (9,656,818)
----------- ------------ ---------- ------------
Increase (Decrease) ......................................... (676,189) $ (3,686,121) (815,373) $ (5,220,551)
=========== ============ ========== ============
GLOBAL GROWTH OPPORTUNITIES FUND
Net proceeds from sales of shares ........................... 430,329 $ 4,851,143 498,253 $ 4,937,582
Exchanged from associated Funds ............................. 714,028 8,054,113 358,767 3,543,331
Shares issued in payment of gain distributions .............. -- -- 86,294 752,541
----------- ------------ ---------- ------------
Total ....................................................... 1,144,357 12,905,256 943,314 9,233,454
----------- ------------ ---------- ------------
Cost of shares repurchased .................................. (402,972) (4,522,407) (387,874) (3,664,340)
Exchanged into associated Funds ............................. (240,605) (2,680,259) (352,291) (3,263,092)
----------- ------------ ---------- ------------
Total ....................................................... (643,577) (7,202,666) (740,165) (6,927,432)
----------- ------------ ---------- ------------
Increase (Decrease) ......................................... 500,780 $ 5,702,590 203,149 $ 2,306,022
=========== ============ ========== ============
GLOBAL SMALLER COMPANIES FUND
Net proceeds from sales of shares ........................... 591,284 $ 8,320,638 2,848,299 $ 43,401,281
Exchanged from associated Funds ............................. 164,183 2,327,792 401,071 5,918,063
Shares issued in payment of gain distributions .............. -- -- 677,168 9,575,151
----------- ------------- --------- ------------
Total ....................................................... 755,467 10,648,430 3,926,538 58,894,495
----------- ------------- ---------- ------------
Cost of shares repurchased .................................. (3,859,797) 54,184,728) (2,026,859) (29,719,894)
Exchanged into associated Funds ............................. (2,999,217) 41,987,319) (1,836,699) (26,278,385)
----------- ------------- ---------- ------------
Total ....................................................... (6,859,014) (96,172,047) (3,863,558) (55,998,279)
----------- ------------- ---------- ------------
Increase (Decrease) ......................................... (6,103,547) $(85,523,617) 62,980 $ 2,896,216
=========== ============= ========== ============
GLOBAL TECHNOLOGY FUND
Net proceeds from sales of shares ........................... 707,359 $12,567,982 1,176,951 $ 15,204,426
Exchanged from associated Funds ............................. 951,950 17,651,426 357,448 4,387,134
Shares issued in payment of gain distributions .............. 55,812 713,832 710,545 8,897,918
----------- ------------ ---------- ------------
Total ....................................................... 1,715,121 30,933,240 2,244,944 28,489,478
----------- ------------ ----------- ------------
Cost of shares repurchased .................................. (655,573) (10,578,118) (513,317) (6,421,499)
Exchanged into associated Funds ............................. (635,591) (11,450,742) (442,471) (5,472,802)
----------- ------------ ---------- ------------
Total ....................................................... (1,291,164) (22,028,860) (955,788) (11,894,301)
----------- ------------ ----------- ------------
Increase (Decrease) ......................................... 423,957 $ 8,904,380 1,289,156 $ 16,595,177
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------
MAY 27, 1999* TO
--------------------------
OCTOBER 31, 1999
--------------------------
SHARES AMOUNT
------------ ------------
INTERNATIONAL FUND
<S> <C> <C>
Net proceeds from sales of shares ........................... 36,976 $ 720,589
Exchanged from associated Funds ............................. 198,356 3,936,723
Shares issued in payment of gain distributions .............. -- --
--------- -----------
Total ....................................................... 235,332 4,657,312
--------- -----------
Cost of shares repurchased .................................. (62) (1,235)
Exchanged into associated Funds ............................. (168,261) (3,350,346)
--------- -----------
Total ....................................................... (168,323) (3,351,581)
--------- -----------
Increase (Decrease) ......................................... 67,009 $ 1,305,731
========= ===========
EMERGING MARKETS GROWTH FUND
Net proceeds from sales of shares ........................... 48,936 $ 329,559
Exchanged from associated Funds ............................. 622 4,099
--------- -----------
TOTAL ....................................................... 49,558 333,658
--------- -----------
Cost of shares repurchased .................................. (741) (4,763)
Exchanged into associated Funds ............................. (1,781) (12,003)
--------- -----------
Total ....................................................... (2,522) (16,766)
--------- -----------
Increase (Decrease) ......................................... 47,036 $ 316,892
========= ===========
GLOBAL GROWTH OPPORTUNITIES FUND
Net proceeds from sales of shares ........................... 86,106 $ 1,044,976
Exchanged from associated Funds ............................. 7,690 93,772
Shares issued in payment of gain distributions .............. -- --
--------- -----------
Total ....................................................... 93,796 1,138,748
--------- -----------
Cost of shares repurchased .................................. (2,027) (25,162)
Exchanged into associated Funds ............................. (7,911) (95,887)
--------- -----------
Total ....................................................... (9,938) (121,049)
--------- -----------
Increase (Decrease) ......................................... 83,858 $ 1,017,699
========= ===========
GLOBAL SMALLER COMPANIES FUND
Net proceeds from sales of shares ........................... 23,769 $ 351,320
Exchanged from associated Funds ............................. 585 8,677
Shares issued in payment of gain distributions .............. -- --
--------- -----------
Total ....................................................... 24,354 359,997
--------- -----------
Cost of shares repurchased .................................. -- --
Exchanged into associated Funds ............................. -- (13)
--------- -----------
Total ....................................................... -- (13)
--------- -----------
Increase (Decrease) ......................................... 24,354 $ 359,984
========= ===========
GLOBAL TECHNOLOGY FUND
Net proceeds from sales of shares ........................... 265,564 $ 5,290,956
Exchanged from associated Funds ............................. 75,526 1,571,820
Shares issued in payment of gain distributions .............. -- --
---------- -----------
Total ....................................................... 341,090 6,862,776
---------- -----------
Cost of shares repurchased .................................. (4,399) (93,792)
Exchanged into associated Funds ............................. (49,780) (1,034,090)
---------- ----------
Total ....................................................... (54,179) (1,127,882)
---------- ----------
Increase (Decrease) ......................................... 286,911 $ 5,734,894
========== ==========
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------------------------
YEAR ENDED OCTOBER 31,
------------------------------------------------------------
1999 1998
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ---------- ----------- ----------
INTERNATIONAL FUND
<S> <C> <C> <C> <C>
Net proceeds from sales of shares ........................... 151,706 $ 2,794,610 355,632 $ 6,404,661
Exchanged from associated Funds ............................. 1,827,402 34,418,653 1,774,064 31,181,338
Shares issued in payment of gain distributions .............. -- -- 161,046 2,517,142
------------- ------------- ----------- -------------
Total ....................................................... 1,979,108 37,213,263 2,290,742 40,103,141
------------- ------------- ----------- -------------
Cost of shares repurchased .................................. (543,071) (10,198,403) (568,487) (9,945,313)
Exchanged into associated Funds ............................. (1,892,078) (35,765,618) (1,875,479) (33,074,289)
------------- ------------- ----------- -------------
Total ....................................................... (2,435,149) (45,964,021) (2,443,966) (43,019,602)
------------- ------------- ----------- -------------
Increase (Decrease) ......................................... (456,041) $ (8,750,758) (153,224) $ (2,916,461)
============= ============= =========== =============
EMERGING MARKETS GROWTH FUND
Net proceeds from sales of shares ........................... 189,017 $ 1,112,498 486,492 $ 3,323,782
Exchanged from associated Funds ............................. 1,035,202 6,491,030 406,998 2,593,655
------------- ------------- ----------- -------------
TOTAL ....................................................... 1,224,219 7,603,528 893,490 5,917,437
------------- ------------- ----------- -------------
Cost of shares repurchased .................................. (861,334) (5,073,352) (1,033,695) (6,863,680)
Exchanged into associated Funds ............................. (1,076,101) (6,467,288) (1,478,158) (9,935,797)
------------- ------------- ----------- -------------
Total ....................................................... 1,937,435) (11,540,640) (2,511,853) (16,799,477)
------------- ------------- ----------- -------------
Increase (Decrease) ......................................... (713,216) $ (3,937,112) (1,618,363) $ (10,882,040)
============= ============= =========== =============
GLOBAL GROWTH OPPORTUNITIES FUND
Net proceeds from sales of shares ........................... 391,034 $ 4,418,456 682,270 $ 6,765,527
Exchanged from associated Funds ............................. 2,104,467 24,335,358 1,270,285 12,674,214
Shares issued in payment of gain distributions .............. -- -- 302,772 2,635,591
------------- ------------- ----------- -------------
Total ....................................................... 2,495,501 28,753,814 2,255,327 22,075,332
------------- ------------- ----------- -------------
Cost of shares repurchased .................................. (1,431,799) (16,000,546) (1,596,162) (15,267,156)
Exchanged into associated Funds ............................. (1,697,515) (19,863,990) (895,935) (8,455,082)
------------- ------------- ----------- -------------
Total ....................................................... (3,129,314) (35,864,536) (2,492,097) (23,722,238)
------------- ------------- ----------- -------------
Increase (Decrease) ......................................... (633,813) $ (7,110,722) (236,770) $ (1,646,906)
============= ============= =========== =============
GLOBAL SMALLER COMPANIES FUND
Net proceeds from sales of shares ........................... 702,458 $ 9,864,284 2,596,605 $ 39,263,963
Exchanged from associated Funds ............................. 2,871,054 42,274,335 2,673,250 42,068,010
Shares issued in payment of gain distributions .............. -- -- 1,009,423 14,283,328
------------- ------------- ----------- -------------
Total ....................................................... 3,573,512 52,138,619 6,279,278 95,615,301
------------- ------------- ----------- -------------
Cost of shares repurchased .................................. (7,990,822) (112,044,606) (6,095,959) (89,449,184)
Exchanged into associated Funds ............................. (4,975,302) (71,664,489) (4,534,421) (68,639,834)
------------- ------------- ----------- -------------
Total ....................................................... (12,966,124) (183,709,095) (10,630,380) (158,089,018)
------------- ------------- ----------- -------------
Increase (Decrease) ......................................... (9,392,612) $(131,570,476) (4,351,102) $ (62,473,717)
============= ============= =========== =============
GLOBAL TECHNOLOGY FUND
Net proceeds from sales of shares ........................... 765,037 $ 13,908,046 1,189,506 $ 15,269,385
Exchanged from associated Funds ............................. 7,181,387 123,875,092 9,576,218 121,982,389
Shares issued in payment of gain distributions .............. 177,411 2,265,535 3,070,660 38,405,363
------------- ------------- ----------- -------------
Total ....................................................... 8,123,835 140,048,673 13,836,384 175,657,137
------------- ------------- ----------- -------------
Cost of shares repurchased .................................. (3,165,981) (51,194,253) (3,753,667) (47,125,132)
Exchanged into associated Funds ............................. (6,798,661) (116,822,546) (10,505,019) (135,114,189)
------------- ------------- ----------- -------------
Total ....................................................... (9,964,642) (168,016,799) (14,258,686) (182,239,321)
------------- ------------- ----------- -------------
Increase (Decrease) ......................................... (1,840,807) $ (27,968,126) (422,302) $ (6,582,184)
============= ============= =========== =============
</TABLE>
65
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand the financial performance
of each Class of each Fund for the past five years or from its inception if less
than five 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 during the period. "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
----------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
1999 1998 1997 1996 1995
--------- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR ....................... $17.75 $17.92 $17.17 $16.71 $17.67
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................. (0.01) 0.03 (0.04) 0.05 0.06
Net realized and unrealized gain (loss)
on investments ......................................... 4.49 0.62 2.47 1.77 (0.42)
Net realized and unrealized gain (loss)
from foreign currency transactions ..................... (0.76) 0.40 (0.79) (0.44) 0.09
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ......................... 3.72 1.05 1.64 1.38 (0.27)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................... -- -- -- -- --
Distributions from net realized capital gain ............. -- (1.22) (0.89) (0.92) (0.69)
------- ------ -------- ------- -------
TOTAL DISTRIBUTIONS ...................................... -- (1.22) (0.89) (0.92) (0.69)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR ............................. $21.47 $17.75 $17.92 $17.17 $16.71
======= ======= ======= ======= =======
TOTAL RETURN: 20.96% 6.51% 9.83% 8.43% (1.24)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................... $44,763 $44,122 $46,107 $50,998 $48,763
Ratio of expenses to average net assets .................. 1.88% 1.69% 1.78% 1.81% 1.69%
Ratio of net income (loss) to average net assets ......... (0.06)% 0.16% (0.23)% 0.28% 0.35%
Portfolio turnover rate .................................. 83.10% 81.37% 83.11% 55.71% 60.70%
</TABLE>
- ----------------
See footnotes on page 73.
66
<PAGE>
FINANCIAL HIGHLIGHTS
INTERNATIONAL FUND (continued)
<TABLE>
<CAPTION>
CLASS B CLASS C
-------------------------------------------- -----------
YEAR ENDED OCTOBER 31, 4/22/96* 5/27/99*
------------------------------- TO TO
1999 1998 1997 10/31/96 10/31/99
----- ----- ----- ---------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .................. $16.93 $17.30 $16.74 $17.38 $18.39
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................... (0.15) (0.12) (0.18) (0.03) (0.10)
Net realized and unrealized gain (loss)
on investments ...................................... 4.31 0.57 2.42 (0.54) 1.66
Net realized and unrealized gain (loss)
from foreign currency transactions .................. (0.76) 0.40 (0.79) (0.07) 0.36
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ...................... 3.40 0.85 1.45 (0.64) 1.92
------- ------- ------- ------- -------
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 ........................ $20.33 $16.93 $17.30 $16.74 $20.31
======= ======= ======= ======= =======
TOTAL RETURN: 20.08% 5.51% 8.90% (3.68)% 10.44%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) .............. $11,434 $9,835 $6,350 $2,843 $1,361
Ratio of expenses to average net assets ............... 2.64% 2.55% 2.58% 2.66%+ 2.72%+
Ratio of net loss to average net assets ............... (0.82)% (0.70)% (1.03)% (0.35)%+ (1.07)%+
Portfolio turnover rate ............................... 83.10% 81.37% 83.11% 55.71%++ 83.10%+++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-------------------------------------------------------
YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR .................... $16.93 $17.30 $16.74 $16.43 $17.53
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................... (0.15) (0.12) (0.18) (0.08) (0.07)
Net realized and unrealized gain (loss)
on investments ...................................... 4.29 0.57 2.42 1.75 (0.43)
Net realized and unrealized gain (loss)
from foreign currency transactions .................. (0.76) 0.40 (0.79) (0.44) 0.09
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ...................... 3.38 0.85 1.45 1.23 (0.41)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. -- -- -- -- --
Distributions from net realized capital gain .......... -- (1.22) (0.89) (0.92) (0.69)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS -- (1.22) (0.89) (0.92) (0.69)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR .......................... $20.31 $16.93 $17.30 $16.74 $16.43
======= ======= ======= ======= =======
TOTAL RETURN: 19.97% 5.51% 8.90% 7.62% (2.08)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ................ $35,728 $37,485 $40,977 $47,917 $31,273
Ratio of expenses to average net assets ............... 2.64% 2.55% 2.58% 2.64% 2.50%
Ratio of net loss to average net assets ............... (0.82)% (0.70)% (1.03)% (0.47)% (0.44)%
Portfolio turnover rate ............................... 83.10% 81.37% 83.11% 55.71% 60.70%
Without management fee waiver:**
Ratio of expenses to average net assets ............. 2.62%
Ratio of net loss to average net assets ............. (0.56)%
</TABLE>
- -----------------
See footnotes on page 73.
67
<PAGE>
FINANCIAL HIGHLIGHTS
EMERGING MARKETS GROWTH FUND
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------
YEAR ENDED OCTOBER 31, 5/28/96***
------------------------------ TO
1999 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 ..................................... (0.07) (0.01) (0.05) (0.02)
Net realized and unrealized gain (loss)
on investments ........................................ 1.87 (2.00) 1.05 (0.25)
Net realized and unrealized loss
from foreign currency transactions .................... (0.29) (0.15) (0.44) (0.09)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ........................ 1.51 (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 .......................... $6.69 $5.18 $7.34 $6.78
====== ====== ====== ======
TOTAL RETURN: 29.15% (29.43)% 8.26% (5.04)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ................ $30,822 $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 ................. (1.11)% (0.12)% (0.56)% (0.69)%+
Portfolio turnover rate ................................. 136.94% 94.09% 84.09% 12.24%
Without 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 CLASS C
--------------------------------------------------- --------
YEAR ENDED OCTOBER 31, 5/28/96*** 5/27/99*
------------------------------------ TO TO
1999 1998 1997 10/31/96 10/31/99
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD .......... $5.09 $7.27 $6.76 $7.14 $6.14
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................... (0.11) (0.06) (0.11) (0.04) (0.07)
Net realized and unrealized gain (loss)
on investments .............................. 1.83 (1.97) 1.06 (0.25) 0.48
Net realized and unrealized loss
from foreign currency transactions .......... (0.29) (0.15) (0.44) (0.09) (0.03)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS .............. 1.43 (2.18) 0.51 (0.38) 0.38
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... -- -- -- -- --
Distributions from net realized capital gain .. -- -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS ........................... -- -- -- -- --
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ................ $6.52 $5.09 $7.27 $6.76 $6.52
======= ======= ======= ======= =======
TOTAL RETURN: 28.10% (29.99)% 7.54% (5.32)% 6.19%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ...... $16,129 $16,031 $28,819 $10,541 $307
Ratio of expenses to average net assets ....... 3.33% 2.99% 3.04% 3.00%+ 3.37%+
Ratio of net loss to average net assets ....... (1.86)% (0.89)% (1.33)% (1.47)%+ (2.05)%+
Portfolio turnover rate ....................... 136.94% 94.09% 84.09% 12.24% 136.94%+++
Without 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>
EMERGING MARKETS GROWTH FUND (continued)
<TABLE>
<CAPTION>
CLASS D
------------------------------------------------------
5/28/96***
YEAR ENDED OCTOBER 31, TO
-------------------------------------- --------
1999 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 ............................ (0.11) (0.06) (0.11) (0.04)
Net realized and unrealized gain (loss)
on investments ............................... 1.83 (1.97) 1.06 (0.25)
Net realized and unrealized loss
from foreign currency transactions ........... (0.29) (0.15) (0.44) (0.09)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 1.43 (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 ................. $6.52 $5.09 $7.27 $6.76
======= ======= ======= =======
TOTAL RETURN: 28.10% (29.99)% 7.54% (5.32)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $12,854 $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 ........ (1.86)% (0.89)% (1.33)% (1.47)%+
Portfolio turnover rate ........................ 136.94% 94.09% 84.09% 12.24%
Without 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
------------------------------------------------------
YEAR ENDED OCTOBER 31, 11/1/95***
-------------------------------------- TO
1999 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 ............................ (0.07) (0.05) (0.05) (0.03)
Net realized and unrealized gain
on investments ................................ 3.51 0.81 1.47 1.12
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.20) 0.08 (0.30) (0.15)
-------- ------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 3.24 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 ................. $12.86 $9.62 $9.20 $8.08
======== ======= ======== ========
33.68% 9.52% 13.86% 13.17%
TOTAL RETURN
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $120,946 $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 ........ (0.54)% (0.48)% (0.59)% (0.53)%
Portfolio turnover rate ........................ 65.16% 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 CLASS C
----------------------------------------------------- --------
4/22/96* 5/27/99*
TO TO
YEAR ENDED OCTOBER 31, ------- --------
1999 1998 1997 10/31/96 10/31/99
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $9.40 $9.06 $8.02 $8.04 $10.99
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.14) (0.12) (0.12) (0.04) (0.07)
Net realized and unrealized gain
on investments ............................... 3.41 0.80 1.46 0.06 1.43
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.20) 0.08 (0.30) (0.04) 0.12
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 3.07 0.76 1.04 (0.02) 1.48
------- ------- ------- ------- -------
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 ................. $12.47 $9.40 $9.06 $8.02 $12.47
======= ======= ======= ======= =======
TOTAL RETURN: 32.66% 8.76% 12.97% (0.25)% 13.47%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $35,344 $21,930 $19,311 $9,257 $1,046
Ratio of expenses to average net assets ........ 2.44% 2.44% 2.45% 2.53%+ 2.43%+
Ratio of net loss to average net assets ........ (1.29)% (1.24)% (1.35)% (1.13)%+ (1.18)%+
Portfolio turnover rate ........................ 65.16% 45.43% 79.32% 31.44%++ 65.16%+++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
------------------------------------------------------
YEAR ENDED OCTOBER 31, 11/1/95***
-------------------------------------- TO
1999 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 ............................ (0.14) (0.12) (0.12) (0.09)
Net realized and unrealized gain (loss)
on investments ............................... 3.41 0.80 1.46 1.12
Net realized and unrealized gain
from foreign currency transactions ........... (0.20) 0.08 (0.30) (0.15)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 3.07 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 ................. $12.47 $9.40 $9.06 $8.02
======= ======= ======= =======
TOTAL RETURN: 32.66% 8.76% 12.97% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $77,616 $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 ........ (1.29)% (1.24)% (1.35)% (1.25)%
Portfolio turnover rate ........................ 65.16% 45.43% 79.32% 31.44%
</TABLE>
- ----------
See footnotes on page 73.
70
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL SMALLER COMPANIES FUND
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR ............. $14.11 $15.62 $15.14 $13.90 $11.93
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... (0.10) (0.07) -- -- (0.02)
Net realized and unrealized gain (loss)
on investments ............................... 1.94 (0.85) 1.61 2.38 2.24
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.21) 0.04 (0.40) (0.18) 0.08
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ............... 1.63 (0.88) 1.21 2.20 2.30
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... -- -- -- -- --
Distributions from net realized capital gain ... -- (0.63) (0.73) (0.96) (0.33)
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ............................ -- (0.63) (0.73) (0.96) (0.33)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR ................... $15.74 $14.11 $15.62 $15.14 $13.90
======== ======== ======== ======== ========
TOTAL RETURN: 11.55% (5.82)% 8.28% 16.95% 20.10%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $213,729 $374,890 $434,397 $350,359 $102,479
Ratio of expenses to average net assets ........ 1.72% 1.65% 1.67% 1.75% 1.83%
Ratio of net income (loss) to average net assets (0.69)% (0.45)% 0.02% 0.01% (0.20)%
Portfolio turnover rate ........................ 61.31% 50.81% 57.24% 45.38% 63.05%
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------ -------
YEAR ENDED OCTOBER 31, 4/22/96* 5/27/99*
--------------------------------------- TO TO
1999 1998 1997 10/31/96 10/31/99
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $13.46 $15.04 $14.72 $14.44 $13.86
-------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.20) (0.18) (0.11) (0.06) (0.06)
Net realized and unrealized gain (loss)
on investments ............................... 1.85 (0.81) 1.56 0.33 0.98
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.21) 0.04 (0.40) 0.01 0.13
-------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 1.44 (0.95) 1.05 0.28 1.05
-------- -------- -------- -------- -------
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 ................. $14.90 $13.46 $15.04 $14.72 $14.91
======== ======== ======== ======== =======
TOTAL RETURN: 10.70% (6.54)% 7.39% 1.94% 7.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $155,345 $222,496 $247,600 $103,968 $363
Ratio of expenses to average net assets ........ 2.47% 2.41% 2.43% 2.54%+ 2.47%+
Ratio of net loss to average net assets ........ (1.44)% (1.21)% (0.74)% (0.80)%+ (1.20)%+
Portfolio turnover rate ........................ 61.31% 50.81% 57.24% 45.38%++ 61.31%+++
</TABLE>
- ----------
See footnotes on page 73.
71
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL SMALLER COMPANIES FUND (continued)
<TABLE>
<CAPTION>
CLASS D
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR ............. $13.47 $15.05 $14.72 $13.63 $11.80
-------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.20) (0.18) (0.11) (0.11) (0.12)
Net realized and unrealized gain (loss)
on investments ............................... 1.85 (0.81) 1.57 2.34 2.20
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.21) 0.04 (0.40) (0.18) 0.08
-------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 1.44 (0.95) 1.06 2.05 2.16
-------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
DIVIDENDS FROM NET INVESTMENT INCOME ........... -- -- -- -- --
Distributions from net realized capital gain ... -- (0.63) (0.73) (0.96) (0.33)
-------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ............................ -- (0.63) (0.73) (0.96) (0.33)
-------- -------- -------- -------- -------
NET ASSET VALUE, END OF YEAR ................... $14.91 $13.47 $15.05 $14.72 $13.63
======== ======== ======== ======== =======
TOTAL RETURN: 10.69% (6.53)% 7.47% 16.14% 19.11%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $162,220 $272,992 $370,625 $285,477 $85,548
Ratio of expenses to average net assets ........ 2.47% 2.41% 2.43% 2.51% 2.61%
Ratio of net loss to average net assets ........ (1.44)% (1.21)% (0.74)% (0.75)% (0.97)%
Portfolio turnover rate ........................ 61.31% 50.81% 57.24% 45.38% 63.05%
</TABLE>
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR ............. $12.48 $15.14 $11.31 $13.05 $8.37
-------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.19) (0.14) (0.16) (0.08) (0.10)
Net realized and unrealized gain (loss)
on investments ............................... 11.26 0.01 4.06 (0.92) 4.90
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.03) 0.06 (0.07) 0.05 (0.05)
-------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 11.04 (0.07) 3.83 (0.95) 4.75
-------- -------- -------- -------- -------
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 YEAR ................... $23.36 $12.48 $15.14 $11.31 $13.05
======== ======== ======== ======== =======
TOTAL RETURN: 89.40% (0.79)% 33.86% (7.33)% 57.31%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $795,234 $475,951 $583,257 $499,858 $447,732
Ratio of expenses to average net assets ........ 1.59% 1.67% 1.67% 1.75% 1.91%
Ratio of net loss to average net assets ........ (1.10)% (1.04)% (1.10)% (0.74)% (0.89)%
Portfolio turnover rate ........................ 91.12% 87.55% 94.06% 73.00% 87.42%
</TABLE>
- ----------
See footnotes on page 73.
72
<PAGE>
FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND (continued)
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------------------- --------
YEAR ENDED OCTOBER 31, 4/22/96* 5/27/99*
-------------------------------------- TO TO
1999 1998 1997 10/31/96 10/31/99
-------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ........... $11.98 $14.73 $11.09 $11.47 $16.22
-------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.31) (0.23) (0.26) (0.08) (0.13)
Net realized and unrealized gain (loss)
on investments ............................... 10.78 0.01 3.97 (0.39) 5.92
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.03) 0.06 (0.07) 0.09 0.22
-------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 10.44 (0.16) 3.64 (0.38) 6.01
-------- ------- ------- ------- -------
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 ................. $22.26 $11.98 $14.73 $11.09 $22.23
======== ======= ======= ======= =======
TOTAL RETURN: 88.10% (1.55)% 32.82% (3.31)% 37.05%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000s omitted) ....... $118,262 $58,575 $53,046 $18,840 $6,377
Ratio of expenses to average net assets ........ 2.34% 2.43% 2.42% 2.51%+ 2.23%+
Ratio of net loss to average net assets ........ (1.85)% (1.80)% (1.85)% (1.40)%+ (1.72)%+
Portfolio turnover rate ........................ 91.12% 87.55% 94.06% 73.00%++ 91.12%+++
</TABLE>
<TABLE>
<CAPTION>
CLASS D
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF YEAR ............. $11.96 $14.73 $11.09 $12.89 $8.34
-------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................ (0.31) (0.23) (0.26) (0.17) (0.18)
Net realized and unrealized gain (loss)
on investments ............................... 10.77 (0.01) 3.97 (0.91) 4.85
Net realized and unrealized gain (loss)
from foreign currency transactions ........... (0.03) 0.06 (0.07) 0.05 (0.05)
-------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ............... 10.43 (0.18) 3.64 (1.03) 4.62
-------- -------- -------- -------- -------
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 YEAR ................... $22.23 $11.96 $14.73 $11.09 $12.89
======== ======== ======== ======== =======
TOTAL RETURN: 88.17% (1.70)% 32.82% (8.07)% 55.95%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of year (000s omitted) ......... $300,969 $184,032 $232,882 $197,412 $161,622
Ratio of expenses to average net assets ........ 2.34% 2.43% 2.42% 2.52% 2.66%
Ratio of net loss to average net assets ........ (1.85)% (1.80)% (1.85)% (1.50)% (1.63)%
Portfolio turnover rate ........................ 91.12% 87.55% 94.06% 73.00% 87.42%
</TABLE>
- ----------
* Commencement of offering of shares.
** The Manager and Seligman Henderson, the former subadviser to the Series, at
their discretion, waived all or a portion of their fees for the periods
presented.
*** Commencement of operations.
+ Annualized.
++ For the year ended October 31, 1996.
+++ For the year ended October 31, 1999.
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 October 31, 1999, the related statements
of operations for the year then ended and of changes in net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Series' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1999, by correspondence with the Series' 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 Funds constituting the Seligman Henderson Global Fund Series,
Inc. as of October 31, 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
December 10, 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
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).
DIVIDEND YIELD -- 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 1999 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 187 mutual funds at
October 31, 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 647 mutual funds at October 31, 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 265 mutual funds at October 31, 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 122
mutual funds at October 31, 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 46 mutual funds at October 31, 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
