<PAGE>
[LOGO] CANADA LIFE
RONALD E. BEETTAM, F.S.A., F.C.I.A.
President
Canada Life Insurance Company
of America
P.O. Box 105662
Atlanta, GA 30348-5662
(770) 953-1959, x2861
(800) 905-1959
FAX: (888) 670-4836
February 28, 2000
Dear Trillium(R) Policyowner:
Enclosed is the Trillium Annual Report for the period ending December 31, 1999.
We encourage you to review this information and to refer to it as needed
throughout the year.
Please call your Registered Representative or Canada Life if you have any
questions.
Thank you for selecting Trillium for your financial needs.
Sincerely,
/s/ Ronald E. Beettam
Ronald E. Beettam
Encl.
<PAGE>
TRILLIUM(R) [LOGO OF CANADA LIFE]
A Variable Annuity INSURANCE COMPANY OF AMERICA
P.O. Box 105662
Atlanta, GA 30348-5662
(800) 905-1959
Additional Premium Payment Form
Please complete the following information:
Owner:_____________________________ Amount of Premium Payment:
Annuitant:_________________________ $____________
Policy No.:________________________
Owner's Ssn/Tin:___________________ IF YOU ARE CHANGING ALLOCATION
PLEASE COMPLETE THE FOLLOWING:
____ This payment only
____ This payment and all future
pymts
____ Re-allocate all current assets
<TABLE>
<S> <C> <C>
CASH MGMT (21) ____% INCOME (22) ____% SMALL-CAP VALUE (44) ____%
BOND (23) ____% COM STOCK (24) ____% LARGE-CAP VALUE (45) ____%
CAPITAL (25) ____% INTERNATIONAL (26) ____% LARGE-CAP GROWTH (281) ____%
COMM & INFO (27) ____% GBL GROWTH OPP (28) ____%
GBL SMLR CO (29) ____% FRONTIER (41) ____%
HIGH YLD BOND (42) ____% GLOBAL TECH (43) ____%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Fixed Account Options*
<S> <C> <C> <C> <C>
____% 1 Yr. (201) ____% 3 Yr. (203) ____% 5 Yr. (205) ____% 7 Yr. (207) ____% 10 Yr. (210)
*The Fixed Accounts and/or the Guarantee Periods may not be available in all states.
- ------------------------------------------------------------------------------------------------
</TABLE>
Total allocation must equal 100%
Owner's Signature ___________________________ Date _______________
Joint Owner's Signature ___________________________ Date _______________
PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA
Information For Qualified Policy Contributions
(This Section Must Be Completed)
IS THIS A ROLLOVER? _____YES _____NO
IF YES, WHAT TYPE? ____________________ PLEASE NOTE: CONTRIBUTIONS FOR PRIOR
TAX YEAR CANNOT BE MADE
CONTRIBUTION $___________ FOR __________ AFTER APRIL 15TH OF THE
CURRENT TAX YEAR.
CONTRIBUTION $___________ FOR __________
PLEASE DIRECT ANY QUESTIONS REGARDING YOUR POLICY TO YOUR REGISTERED
REPRESENTATIVE OR TO OUR VARIABLE ANNUITY DEPARTMENT AT (800) 905-1959.
Our Variable Annuity Administrators can not advise you on the suitability of
your payment. Please contact your Registered Representative to discuss
suitability issues prior to submitting your additional premium payment.
Variable Annuities are issued by Canada Life Insurance Company of America and
offered through its subsidiary,
Canada Life of America Financial Services, Inc. (member NASD).
<PAGE>
The attached are incorporated by reference herein to the Annual Report filed by
and on behalf of the following:
Seligman Portfolios, Inc., filed March 1, 2000
Portfolios include: Seligman Bond, Seligman Capital, Seligman Cash
Management, Seligman Common Stock, Seligman Communications and Information,
Seligman Frontier, Seligman Global Growth, Seligman Global Smaller Companies,
Seligman Global Technology, Seligman High-Yield Bond, Seligman Income, Seligman
International Growth, Seligman Large-Cap Growth, Seligman Large-Cap Value, and
Seligman Small-Cap Value.
<PAGE>
VARIABLE ACCOUNT PERFORMANCE
----------------------------
Average Annual Total Returns for Periods Ending December 31, 1999
Assuming Contract Continues
TRILLIUM [LOGO]
A VARIABLE ANNUITY
<TABLE>
<CAPTION>
Since Inception
PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Seligman Communications and Information Portfolio 83.13% 43.64% 33.99% -- 33.17% 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Technology Portfolio 115.65 50.67 -- -- 40.92 5/1/96
- ------------------------------------------------------------------------------------------------------------------------
Seligman Frontier Portfolio 14.89 8.49 15.35 -- 15.72 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Small-Cap Value Portfolio 33.30 -- -- -- 5.61 5/1/98
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Smaller Companies Portfolio 26.47 10.57 12.73 -- 12.78 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Capital Portfolio 51.11 29.51 25.07 17.20% 16.08 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Growth Portfolio (new portfolio) 20.46* 5/1/99
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Growth Portfolio 50.28 25.89 -- -- 20.10 5/1/96
- ------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value Portfolio (4.19) -- -- -- (3.26) 5/1/98
- ------------------------------------------------------------------------------------------------------------------------
Seligman Common Stock Portfolio 11.49 17.66 19.21 13.71 13.82 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman International Growth Portfolio 24.80 14.95 11.86 -- 10.72 5/3/93
- ------------------------------------------------------------------------------------------------------------------------
Seligman Income Portfolio 1.37 6.49 7.99 7.36 7.48 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman High-Yield Bond Portfolio (2.20) 3.30 -- -- 6.14 5/1/95
- ------------------------------------------------------------------------------------------------------------------------
Seligman Bond Portfolio (5.88) 2.47 4.43 4.31 4.33 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman Cash Management Portfolio Current Yield 6.86%+ 3.54 3.76 3.71 3.33 3.53 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Not annualized.
+ Annualized for the seven-day period ending December 31, 1999. The current
yield figure shown more closely reflects the current earnings of the
Portfolio than total return figures. Although Seligman Cash Management
Portfolio seeks to preserve the value of investments at $1.00 per share, it
is possible to lose money by investing in the Portfolio.
Trillium Fixed Account's rate for the one year Guarantee Period was 4.75% as of
December 31, 1999. Rates for each Guarantee Period will be different, and are
subject to change on a monthly basis. The 3-, 5-, 7-, and 10-year Guarantee
Periods are currently not approved in all states. Please call 800-221-2783 for
state approval and the current rates on these Guarantee Periods.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance for Seligman
Communications and Information and Seligman Global Technology Portfolios was
achieved during a market favorable to companies in the technology sector. There
can be no assurances that these Portfolios will continue consistently to
achieve, by investing in initial public offerings or otherwise, substantially
similar performance that the Portfolios had previously experienced. Performance
of the variable portfolios reflects the performance of Seligman Portfolios,
Inc., the underlying investment vehicle for the Trillium Variable Account,
adjusted for the current fees and charges (excluding CDSC) associated with
Trillium. For performance figures with CDSC, please see reverse side. The
variable account commenced operations on 5/3/93. The fixed account is held in
the general account of Canada Life Insurance Company of America (CLICA) and
provides a guarantee, by CLICA, against loss of principal, and guarantees
payment of a specified current rate of interest. Please contact your financial
advisor or call Seligman Advisors at 800-221-2783 for a prospectus containing
full details including information on fees and charges. Please read the
prospectus carefully before investing or sending money.
There are specific risks associated with technology investing, such as greater
price fluctuations, foreign taxation, government regulation, and limited
liquidity. A portfolio that concentrates its investments in one sector of the
economy may be subject to greater share price fluctuations than a more
diversified portfolio. The stocks of smaller companies may be subject to above-
average market price fluctuations. There are specific risks associated with
global investing, such as currency fluctuations, foreign taxation, differences
in financial reporting practices, and changes in political conditions. A
portfolio with fewer holdings, such as Seligman Large-Cap Value Portfolio and
Seligman Small-Cap Value Portfolio, may be subject to greater volatility than a
portfolio with a greater number of holdings. High-yield bonds are subject to a
greater risk of loss of principal and interest than higher-rated investment
grade bonds. Purchasers should carefully assess the risks associated with an
investment in Seligman High-Yield Bond Portfolio.
<PAGE>
VARIABLE ACCOUNT PERFORMANCE
----------------------------
Average Annual Total Returns for Periods Ending December 31, 1999
Assuming Contract Is Surrendered at End of Period
<TABLE>
<CAPTION>
Since Inception
PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Seligman Communications and Information Portfolio 77.73% 42.90% 33.82% -- 33.02% 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Technology Portfolio 110.25 50.01 -- -- 40.42 5/1/96
- ------------------------------------------------------------------------------------------------------------------------
Seligman Frontier Portfolio 9.49 7.21 15.04 -- 15.44 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Small-Cap Value Portfolio 27.90 -- -- -- 2.46 5/1/98
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Smaller Companies Portfolio 21.07 9.33 12.40 -- 12.47 10/4/94
- ------------------------------------------------------------------------------------------------------------------------
Seligman Capital Portfolio 45.71 28.61 24.85 17.20% 16.08 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Growth Portfolio (new portfolio) 15.06* 5/1/99
- ------------------------------------------------------------------------------------------------------------------------
Seligman Global Growth Portfolio 44.88 24.94 -- -- 19.34 5/1/96
- ------------------------------------------------------------------------------------------------------------------------
Seligman Large-Cap Value Portfolio (9.59) -- -- -- (6.61) 5/1/98
- ------------------------------------------------------------------------------------------------------------------------
Seligman Common Stock Portfolio 6.09 16.56 18.94 13.71 13.82 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman International Growth Portfolio 19.40 13.80 11.52 -- 10.56 5/3/93
- ------------------------------------------------------------------------------------------------------------------------
Seligman Income Portfolio (4.03) 5.15 7.59 7.36 7.48 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman High-Yield Bond Portfolio (7.60) 1.88 -- -- 5.52 5/1/95
- ------------------------------------------------------------------------------------------------------------------------
Seligman Bond Portfolio (11.28) 1.03 3.97 4.31 4.33 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
Seligman Cash Management Portfolio Current Yield 6.86%+ (1.86) 2.34 3.24 3.33 3.53 6/21/88
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Not annualized.
+ Annualized for the seven-day period ending December 31, 1999. The current
yield figure shown more closely reflects the current earnings of the Portfolio
than total return figures. Although Seligman Cash Management Portfolio seeks
to preserve the value of investments at $1.00 per share, it is possible to
lose money by investing in the Portfolio.
Trillium Fixed Account's rate for the one year Guarantee Period was 4.75% as of
December 31, 1999. Rates for each Guarantee Period will be different, and are
subject to change on a monthly basis. The 3-, 5-, 7-, and 10-year Guarantee
Periods are currently not approved in all states. Please call 800-221-2783 for
state approval and the current rates on these Guarantee Periods.
Issued by: Canada Life Insurance Company of America, 6201 Powers Ferry Road,
N.W., Atlanta, GA 30339
Distributed by: Seligman Advisors, Inc., 100 Park Avenue, New York, NY 10017
. (800) 221-2783
Shares of the Trillium portfolios are not deposits or obligations of, or
guaranteed or endorsed by, any bank. Shares are not insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other federal
agency, and are subject to market fluctuations including possible loss of
principal.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance for Seligman
Communications and Information and Seligman Global Technology Portfolios was
achieved during a market favorable to companies in the technology sector. There
can be no assurances that these Portfolios will continue consistently to
achieve, by investing in initial public offerings or otherwise, substantially
similar performance that the Portfolios had previously experienced. Performance
of the variable portfolios reflects the performance of Seligman Portfolios,
Inc., the underlying investment vehicle for the Trillium Variable Account, and
is adjusted for Trillium's current fees and charges, including the maximum CDSC
of 69%. Trillium's CDSC for current premiums (premiums paid during the current
and previous six policy years) starts at 69% and decreases in steps, depending
on the number of policy years since the premium was paid, as follows: less than
two years, 69% at least two, but less than four, 59% at least four, but less
than five, 49% at least five, but less than six, 39% at least six, but less than
seven, 29% at least seven, no charge. The variable account commenced operations
on 5/3/93. The fixed account is held in the general account of Canada Life
Insurance Company of America (CLICA) and provides a guarantee, by CLICA, against
loss of principal, and guarantees payment of a specified current rate of
interest. Please contact your financial advisor or call Seligman Advisors at
800-221-2783 for a prospectus containing full details including information on
fees and charges. Please read the prospectus carefully before investing or
sending money.
<PAGE>
- --------------------------------------------------------------------------------
ANNUAL REPORT
- --------------------------------------------------------------------------------
TRILLIUM
A VARIABLE ANNUITY
December 31, 1999
Total Returns*
For the Year Ended December 31, 1999
Sub-Accounts:
Bond ............................................................. (5.81)%
Capital .......................................................... 51.20
Cash Management .................................................. 3.62
Common Stock ..................................................... 11.57
Communications and Information ................................... 83.24
Frontier ......................................................... 14.97
Global Growth .................................................... 50.37
Global Smaller Companies ......................................... 26.56
Global Technology ................................................ 115.77
High-Yield Bond .................................................. (2.13)
Income ........................................................... 1.44
International Growth ............................................. 24.88
Large-Cap Growth ................................................. 20.46**
Large-Cap Value .................................................. (4.12)
Small-Cap Value .................................................. 33.38
_________________
* Total returns of the Sub-Accounts are based on the performance of the
Seligman Portfolios, Inc., the underlying investment vehicle for the Canada
Life of America Variable Annuity Account 2 (Variable Annuity Account 2), less
current fees and charges. The returns exclude any contingent deferred sales
charge ("CDSC") applicable to the Variable Annuity Account 2.
** From commencement of operations, May 1, 1999.
<PAGE>
Seligman Portfolios, Inc.
the underlying investment vehicle for
________________________________________
TRILLIUM
A Variable Annuity
________________________________________
________________________________________
________________________________________
February 7, 2000
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, Manager of Seligman Portfolios, Inc.,
the underlying investment vehicle for your Trillium Variable Annuity, and Canada
Life Insurance Company of America, as issuer of The Canada Life of America
Variable Annuity Account 2, are pleased to provide the enclosed audited
financial statements and accompanying information for the fiscal year ended
December 31, 1999. Performance and portfolio commentary are also provided for
each of the Portfolios.
The 20th century ended on an extraordinarily optimistic note for the US stock
markets, with all major indices -- the Dow Jones Industrial Average, the S&P
500, and the NASDAQ -- at record highs. The broad-based S&P 500 had achieved a
fifth consecutive year of greater than 20% returns -- a record-breaking run.
Supporting these impressive markets was the US economic expansion -- now the
longest in US history. Throughout 1999, unemployment stood at a near 30-year
low, inflation remained tame, and consumer confidence soared. In addition, the
global economy rebounded strongly.
By year-end, the US and global economies were stronger than perhaps anyone
had anticipated at the start of the year. Throughout 1999, the US economy showed
no signs of slowing, triggering concerns regarding inflation. In response, the
Federal Reserve Board has now increased the federal funds rate four times,
leaving this key rate 100 basis points higher than it had been at year-end 1998.
The Federal Reserve Board's skillful watch over the economy, both in its
response to the worldwide crisis of 1998 and vigilance regarding inflation in
1999, has been a key contributor to the long-term health of this remarkable
economy.
While 1999 will certainly be remembered as a positive year for equity
investors, it was also a year of sharp contrasts. Despite stellar performances
by the popular indices, the market was extraordinarily narrow. Just over half
the stocks in the S&P 500 had positive returns. The outsized returns of a few
stocks also skewed the indices. Just seven stocks were responsible for half of
the S&P 500's return; five of these were technology companies, with four of
those delivering astounding triple-digit returns. Large-cap growth and
technology companies continued to dominate, while value stocks lagged
considerably. However, the market did show signs of a broadening trend, which we
believe will continue; 1999 was the first year since 1994 that small- and
mid-cap stocks delivered returns approaching those of large-caps.
The markets also experienced a dramatic divergence between stocks and bonds.
The bond markets experienced one of the worst years on record, and 30-year US
government bond yields soared from 5.08% at the beginning of the year to 6.48%
by the end of the year. Unfazed, the stock market hit several new highs. This
sharp divergence cannot continue; our view is that interest rates will stabilize
and equity price increases will be more modest.
The past fiscal year was also characterized by significant divergence in the
performances of international stock markets. Although the economic background
was positive, increases in both short- and long-term interest rates around the
world placed a drag on stock market performance. In general, markets in Europe
rose modestly in US dollar terms, while stock markets in Asia -- including Japan
- -- rose sharply as evidence mounted that the regional economic recovery was
sustainable.
Thank you for your continued support of Trillium. We look forward to
continuing to serve your investment needs in the year 2000.
Respectfully,
/s/ Ronald E. Beettam /s/ William C. Morris
Ronald E. Beettam William C. Morris
President Chairman
Canada Life Insurance Company of America J. & W. Seligman & Co. Incorporated
-iv-
<PAGE>
Canada Life of America Variable Annuity Account 2
- --------------------------------------------------------------------------------
Statement of Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Common Communications
Bond Capital Management Stock and Information
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Frontier
----------- ----------- ----------- ----------- --------------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in Seligman
Portfolios, Inc., at market
value (see Note 3 for
cost values)................. $ 4,808,210 $26,692,333 $16,817,027 $45,616,674 $172,260,230 $20,946,622
Due from (to) Canada Life
Insurance Company of
America...................... 102,438 (36,414) 40,600 58,643 (220,348) (7,211)
----------- ----------- ----------- ----------- ------------ -----------
Net Assets.................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411
=========== =========== =========== =========== ============ ===========
NET ASSETS
ATTRIBUTABLE TO:
Policyholders' liability
reserve..................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411
----------- ----------- ----------- ----------- ------------ -----------
Net Assets.................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411
=========== =========== =========== =========== ============ ===========
Number of Units
Outstanding................. 299,153 474,940 11,215,405 1,020,957 3,821,257 970,283
=========== =========== =========== =========== ============ ===========
Net Asset Value Per Unit...... $ 16.4152 $ 56.1248 $ 1.5031 $ 44.7377 $ 45.0218 $ 21.5807
=========== =========== =========== =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Global
Global Smaller Global High-Yield
Growth Companies Technology Bond
Sub-Account Sub-Account Sub-Account Sub-Account Income Sub-Account
----------- ----------- ----------- ----------- ------ -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in Seligman
Portfolios, Inc., at market
value (see Note 3 for
cost values)................. $10,944,754 $18,741,951 $20,207,361 $24,996,057 $ 7,880,026
Due from (to) Canada Life
Insurance Company of
America...................... 16,451 37,943 (127,456) 230,046 573
----------- ----------- ----------- ----------- -----------
Net Assets.................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599
=========== =========== =========== =========== ===========
NET ASSETS
ATTRIBUTABLE TO:
Policyholders' liability
reserve..................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599
----------- ----------- ----------- ----------- -----------
Net Assets.................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599
=========== =========== =========== =========== ===========
Number of Units
Outstanding................. 558,642 996,611 569,543 1,903,614 340,851
=========== =========== =========== =========== ===========
Net Asset Value Per Unit...... $ 19.6212 $ 18.8438 $ 35.2562 $ 13.2517 $ 23.1204
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Large-Cap Large-Cap Small-Cap
Growth Growth Value Value
International Sub-Account Sub-Account Sub-Account Sub-Account Sub-Accounts Combined
----------- ----------- ----------- ----------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in Seligman
Portfolios, Inc., at market
value (see Note 3 for
cost values)................. $ 9,869,838 $ 3,008,396 $ 5,610,326 $ 4,253,886 $392,653,691
Due from (to) Canada Life
Insurance Company of
America...................... (10,513) (37,703) (18,969) (166,405) (138,325)
----------- ----------- ----------- ----------- ------------
Net Assets.................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366
=========== =========== =========== =========== ============
NET ASSETS
ATTRIBUTABLE TO:
Policyholders' liability
reserve..................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366
----------- ----------- ----------- ----------- ------------
Net Assets.................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366
=========== =========== =========== =========== ============
Number of Units
Outstanding................. 498,296 246,607 590,205 372,720 23,879,084
=========== =========== =========== =========== ============
Net Asset Value Per Unit...... $ 19.7861 $ 12.0463 $ 9.4736 $ 10.9666
=========== =========== =========== ============
</TABLE>
______________
See accompanying notes.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Statement of Operations For the Year Ended December 31, 1999
- ----------------------------------------------------------------------------------------------------------------------
Cash Common Communications
Bond Capital Management Stock and Information
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Frontier
----------- ----------- ----------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.......... $ 330,155 $ 5,991,515 $ 691,933 $ 9,489,021 $ 25,452,529 $ --
Less mortality and expense
risk charges (Note 6)....... 72,701 269,393 193,759 630,094 1,618,310 309,166
----------- ----------- ----------- ----------- ------------ -----------
Net Investment Income
(loss)...................... 257,454 5,722,122 498,174 8,858,927 23,834,219 (309,166)
----------- ----------- ----------- ----------- ------------ -----------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss)
on investments.............. (144,807) 1,347,782 -- 1,788,619 8,073,059 (1,417,941)
Net unrealized appreciation
(depreciation) of
investments................. (426,084) 2,021,410 -- (5,762,124) 47,083,794 2,941,214
----------- ----------- ----------- ----------- ------------ -----------
Net Realized and Unrealized
Gain (Loss) on
Investments................. (570,891) 3,369,192 -- (3,973,505) 55,156,853 1,523,273
----------- ----------- ----------- ----------- ------------ -----------
Net Increase (Decrease) in
Net Assets Resulting
from Operations............. $ (313,437) $ 9,091,314 $ 498,174 $ 4,885,422 $ 78,991,072 $ 1,214,107
=========== =========== =========== =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Global
Global Smaller Global High-Yield
Growth Companies Technology Bond
Sub-Account Sub-Account Sub-Account Sub-Account Income Sub-Account
----------- ----------- ----------- ----------- ------ -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.......... $ 1,045,916 $ -- $ 1,720,843 $ 2,869,303 $ 969,966
Less mortality and expense
risk charges (Note 6)....... 122,265 237,320 135,607 392,472 115,964
----------- ----------- ----------- ----------- ------------
Net Investment Income
(loss)...................... 923,651 (237,320) 1,585,236 2,476,831 854,002
----------- ----------- ----------- ----------- ------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss)
on investments.............. 790,461 246,754 3,349,814 (1,389,315) (19,359)
Net unrealized appreciation
(depreciation) of
investments................. 2,051,588 3,855,334 4,867,611 (1,657,637) (717,827)
----------- ----------- ----------- ----------- ------------
Net Realized and Unrealized
Gain (Loss) on
Investments................. 2,842,049 4,102,088 8,217,425 (3,046,952) (737,186)
----------- ----------- ----------- ----------- ------------
Net Increase (Decrease) in
Net Assets Resulting
from Operations............. $ 3,765,700 $ 3,864,768 $ 9,802,661 $ (570,121) $ 116,816
=========== =========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
Large-Cap Large-Cap Small-Cap
Growth Growth Value Value
International Sub-Account Sub-Account Sub-Account Sub-Account Sub-Accounts Combined
----------- ----------- ----------- ----------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.......... $ 1,343,307 $ -- $ 65,583 $ 759,553 $ 50,729,624
Less mortality and expense
risk charges (Note 6)....... 127,269 15,838 73,372 54,793 4,368,323
----------- ----------- ----------- ----------- ------------
Net Investment Income
(loss)...................... 1,216,038 (15,838) (7,789) 704,760 46,361,301
----------- ----------- ----------- ----------- ------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss)
on investments.............. 488,026 15,637 28,971 181,803 13,339,504
Net unrealized appreciation
(depreciation) of
investments................. 322,636 484,748 (294,330) 36,494 54,806,827
----------- ----------- ----------- ----------- ------------
Net Realized and Unrealized
Gain (Loss) on
Investments................. 810,662 500,385 (265,359) 218,297 68,146,331
----------- ----------- ----------- ----------- ------------
Net Increase (Decrease) in
Net Assets Resulting
from Operations............. $ 2,026,700 $ 484,547 $ (273,148) $ 923,057 $114,507,632
=========== =========== =========== =========== ============
</TABLE>
__________________
* For the period May 1, 1999 (commencement of operations) to December 31, 1999.
See accompanying notes.
-2-
<PAGE>
Canada Life of America Variable Annuity Account 2
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Capital Cash Management
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------ ------------ ------------
1999 1998 1999 1998 1999 1998
------------ ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 257,454 $ 261,254 $ 5,722,122 $ 792,674 $ 498,174 $ 339,212
Net realized gain (loss) on
investments....................... (144,807) 75,857 1,347,782 640,187 -- --
Net unrealized appreciation
(depreciation) of investments..... (426,084) (24,918) 2,021,410 1,474,942 -- --
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations.. (313,437) 312,193 9,091,314 2,907,803 498,174 339,212
----------- ----------- ------------ ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)........ (48,827) 6,780 (453,005) 123,897 7,396,543 1,240,131
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions...................... (48,827) 6,780 (453,005) 123,897 7,396,543 1,240,131
----------- ----------- ------------ ------------ ------------ -----------
Total Increase (Decrease)
in Net Assets..................... (362,264) 318,973 8,638,309 3,031,700 7,894,717 1,579,343
Net Assets, Beginning of Period.... 5,272,912 4,953,939 18,017,610 14,985,910 8,962,910 7,383,567
----------- ----------- ------------ ------------ ------------ -----------
Net Assets, End of Period.......... $ 4,910,648 $ 5,272,912 $ 26,655,919 $ 18,017,610 $ 16,857,627 $ 8,962,910
=========== =========== ============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Common Stock Information Frontier
Sub-Account Sub-Account Sub-Account
----------- ------------ -----------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------- ------------ ------------
Communications and 1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 8,858,927 $ 2,679,016 $ 23,834,219 $ 2,724,807 $ (309,166) $ (477,598)
Net realized gain (loss) on
investments....................... 1,788,619 737,506 8,073,059 (9,244) (1,417,941) (30,358)
Net unrealized appreciation
(depreciation) of investments..... (5,762,124) 4,133,708 47,083,794 22,974,473 2,941,214 (588,267)
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations.. 4,885,422 7,550,230 78,991,072 25,690,036 1,214,107 (1,096,223)
----------- ----------- ------------ ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)........ (1,075,059) 1,806,531 (4,332,148) (2,309,026) (11,892,873) (2,173,725)
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions...................... (1,075,059) 1,806,531 (4,332,148) (2,309,026) (11,892,873) (2,173,725)
----------- ----------- ------------ ------------ ------------ -----------
Total Increase (Decrease)
in Net Assets..................... 3,810,363 9,356,761 74,658,924 23,381,010 (10,678,766) (3,269,948)
Net Assets, Beginning of Period.... 41,864,954 32,508,193 97,380,958 73,999,948 31,618,177 34,888,125
----------- ----------- ------------ ------------ ------------ -----------
Net Assets, End of Period.......... $45,675,317 $41,864,954 $172,039,882 $ 97,380,958 $ 20,939,411 $31,618,177
=========== =========== ============ ============ ============ ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Global Smaller
Global Growth Companies
Sub-Account Sub-Account
------------------------ --------------------------
Year Ended Year Ended
December 31, December 31,
------------------------ --------------------------
1999 1998 1999 1998
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 923,651 $ (45,233) $ (237,320) $ 2,687
Net realized gain (loss) on
investments....................... 790,461 170,051 246,754 237,916
Net unrealized appreciation
(depreciation) of investments..... 2,051,588 921,826 3,855,334 664,912
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets Resulting from Operations.. 3,765,700 1,046,644 3,864,768 905,515
----------- ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)........ (691,469) 2,080,972 (4,591,356) (950,338)
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions...................... (691,469) 2,080,972 (4,591,356) (950,338)
----------- ----------- ------------ ------------
Total Increase (Decrease)
in Net Assets..................... 3,074,231 3,127,616 (726,588) (44,823)
Net Assets, Beginning of Period.... 7,886,974 4,759,358 19,506,482 19,551,305
----------- ------------ ------------ -------------
Net Assets, End of Period.......... $10,961,205 $ 7,886,974 $ 18,779,894 $ 19,506,482
=========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Global Technology High-Yield Bond Income
Sub-Account Sub-Account Sub-Account
------------------------- --------------------------- -----------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------------------- --------------------------- -----------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ------------ --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 1,585,236 $ 168,834 $ 2,476,831 $ 2,241,555 $ 854,002 $ 358,180
Net realized gain (loss) on
investments....................... 3,349,814 119,124 (1,389,315) 242,702 (19,359) 48,543
Net unrealized appreciation
(depreciation) of investments..... 4,867,611 960,333 (1,657,637) (2,787,854) (717,827) 120,665
----------- ----------- ------------ ------------ --------------- -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations.. 9,802,661 1,248,291 (570,121) (303,597) 116,816 527,388
----------- ----------- ------------ ------------ --------------- -----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)........ 5,006,209 729,244 (5,068,977) 8,452,975 (1,222,331) 178,197
----------- ----------- ------------ ------------ --------------- -----------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions...................... 5,006,209 729,244 (5,068,977) 8,452,975 (1,222,331) 178,197
----------- ----------- ------------ ------------ --------------- -----------
Total Increase (Decrease)
in Net Assets..................... 14,808,870 1,977,535 (5,639,098) 8,149,378 (1,105,515) 705,585
Net Assets, Beginning of Period.... 5,271,035 3,293,500 30,865,201 22,715,823 8,986,114 8,280,529
----------- ----------- ------------ ------------ --------------- -----------
Net Assets, End of Period.......... $20,079,905 $ 5,271,035 $ 25,226,103 $ 30,865,201 $ 7,880,599 $ 8,986,114
=========== =========== ============ ============ =============== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
International Growth Large-Cap Growth Large-Cap Value
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
Year Ended 5/1/99* Year Ended 5/1/98*
December 31, to December 31, to
1999 1998 12/31/99 1999 12/31/98
----------- ----------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............... $ 1,216,038 $ 52,265 $ (15,838) $ (7,789) $ 93,225
Net realized gain (loss) on
investments............................... 488,026 302,886 15,637 28,971 (39,349)
Net unrealized appreciation
(depreciation) of investments............. 322,636 852,183 484,748 (294,330) 109,072
----------- ----------- ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations.......... 2,026,700 1,207,334 484,547 (273,148) 162,948
----------- ----------- ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)................ (1,534,864) (645,302) 2,486,146 2,286,079 3,415,478
----------- ----------- ------------ ------------ -----------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions.............................. (1,534,864) (645,302) 2,486,146 2,286,079 3,415,478
----------- ----------- ------------ ------------ -----------
Total Increase (Decrease)
in Net Assets............................. 491,836 562,032 2,970,693 2,012,931 3,578,426
Net Assets, Beginning of Period............ 9,367,489 8,805,457 -- 3,578,426 --
----------- ----------- ------------ ------------ -----------
Net Assets, End of Period.................. $ 9,859,325 $ 9,367,489 $ 2,970,693 $ 5,591,357 $ 3,578,426
=========== =========== ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Small-Cap Value Sub-Accounts
Sub-Account Combined
------------------------- ---------------------------
Year Ended
Year Ended 5/1/98* December 31,
December 31, to ---------------------------
1999 12/31/98 1999 1998
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 704,760 $ 232,466 $ 46,361,301 $ 9,423,344
Net realized gain (loss) on
investments....................... 181,803 (82,801) 13,339,504 2,413,020
Net unrealized appreciation
(depreciation) of investments..... 36,494 (34,480) 54,806,827 28,776,595
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets Resulting from Operations.. 923,057 115,185 114,507,632 40,612,959
----------- ----------- ------------ ------------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)........ 955,227 2,094,012 (12,780,705) 14,049,826
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets Arising from Capital
Transactions...................... 955,227 2,094,012 (12,780,705) 14,049,826
----------- ----------- ------------ ------------
Total Increase (Decrease)
in Net Assets..................... 1,878,284 2,209,197 101,726,927 54,662,785
Net Assets, Beginning of Period.... 2,209,197 -- 290,788,439 236,125,654
----------- ----------- ------------ ------------
Net Assets, End of Period.......... $ 4,087,481 $ 2,209,197 $392,515,366 $290,788,439
=========== =========== ============ ============
</TABLE>
____________
* Commencement of operations.
See accompanying notes.
--5--
<PAGE>
Canada Life of America Variable Annuity Account 2
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Organization
Canada Life of America Variable Annuity Account 2 ("Variable Annuity Account 2")
was established on February 26, 1993 as a separate investment account of Canada
Life Insurance Company of America ("CLICA") to receive and invest premium
payments under variable annuity policies issued by CLICA. Variable Annuity
Account 2 is registered as a unit investment trust under the Investment Company
Act of 1940, as amended. The assets of Variable Annuity Account 2 are invested
in the shares of Seligman Portfolios, Inc. (the "Fund"), a diversified, open-
end, management investment company. Variable Annuity Account 2 has fifteen sub-
accounts, each of which invests only in the shares of the corresponding
portfolio of the Fund.
The assets of Variable Annuity Account 2 are the property of CLICA. The
portion of Variable Annuity Account 2 assets applicable to the policies will not
be charged with liabilities arising out of any other business CLICA may conduct.
2. Significant Accounting Policies
Investments
Investments in shares of the Fund are valued at the reported net asset values
of the respective portfolios. Realized gains and losses are computed on the
basis of average cost. The difference between cost and current market value of
investments owned is recorded as an unrealized gain or loss on investments.
Dividends and Capital Gain Distributions
Dividends and capital gain distributions are recorded on the ex-dividend date
and reflect the dividends declared by the Fund from their accumulated net
investment income and net realized investment gains. Except for the Cash
Management Portfolio, whose dividends are declared daily and paid monthly,
dividends and capital gain distributions are declared and paid annually.
Dividends and capital gain distributions paid to the Variable Annuity Account 2
are reinvested in additional shares of the respective portfolio of the Fund at
the net asset value per share.
Federal Income Taxes
Variable Annuity Account 2 is not taxed separately because the operations of
Variable Annuity Account 2 will be included in the federal income tax return of
CLICA, which is taxed as a "life insurance company" under the provisions of the
Internal Revenue Code.
3. Investments
The investment by Variable Annuity Account 2 in the individual portfolios of
the Fund at December 31, 1999, is as follows:
<TABLE>
<CAPTION>
Number of Shares Market Price Market Value Cost
---------------- ------------ ------------ ----
<S> <C> <C> <C> <C>
Bond 518,685 $ 9.27 $ 4,808,210 $ 5,276,462
Capital 1,116,834 23.90 26,692,333 22,200,005
Cash Management 16,817,027 1.00 16,817,027 16,817,027
Common Stock 2,746,338 16.61 45,616,674 48,463,227
Communications and Information 6,451,694 26.70 172,260,230 109,235,845
Frontier 1,155,357 18.13 20,946,622 17,264,417
Global Growth 600,700 18.22 10,944,754 7,807,514
Global Smaller Companies 1,072,194 17.48 18,741,951 14,223,260
Global Technology 736,957 27.42 20,207,361 14,649,674
High-Yield Bond 2,606,471 9.59 24,996,057 29,179,989
Income 795,159 9.91 7,880,026 8,604,612
International Growth 593,496 16.63 9,869,838 8,297,431
Large-Cap Growth 247,401 12.16 3,008,396 2,523,648
Large-Cap Value 604,561 9.28 5,610,326 5,795,584
Small-Cap Value 526,471 8.08 4,253,886 4,251,872
---------- --------- ------------ ------------
$392,653,691 $314,590,567
============ ============
</TABLE>
4. Security Purchases and Sales
The aggregate cost of purchases and the proceeds from sales of investments are
presented below:
<TABLE>
<CAPTION>
Aggregate Cost of Purchases Proceeds from Sales
--------------------------- -------------------
<S> <C> <C>
Bond $ 3,826,276 $ 3,751,874
Capital 13,889,025 8,681,988
Cash Management 43,166,244 35,395,276
Common Stock 27,060,996 19,591,198
Communications and Information 50,054,207 30,952,174
Frontier 11,982,334 24,371,953
Global Growth 3,730,334 3,556,286
Global Smaller Companies 2,141,143 7,133,175
Global Technology 23,539,594 16,853,432
High-Yield Bond 14,911,889 17,909,850
Income 2,556,593 2,981,872
International Growth 2,547,173 2,925,162
Large-Cap Growth 2,678,782 170,771
Large-Cap Value 4,746,946 2,465,419
Small-Cap Value 3,762,411 1,943,397
------------ ------------
$210,593,947 $178,683,827
============ ============
</TABLE>
<PAGE>
Canada Life of America Variable Annuity Account 2
5. Summary of Changes from Unit Transactions
The following table represents a summary of changes from unit transactions
attributable to contract holders for the periods indicated. The Large-Cap Growth
Sub-Account commenced operations on May 1, 1999.
<TABLE>
<CAPTION>
Year Ended December 31, 1999 Year Ended December 31, 1998
----------------------------- ----------------------------
Units Amount Units Amount
------------ ------------ ---------- -------------
<S> <C> <C> <C> <C>
Bond Sub-Account
Accumulation Units:
Contract purchases and net transfers in 322,587 $ 5,568,576 290,989 $ 4,955,129
Terminated contracts and net transfers out (325,992) (5,617,403) (291,727) (4,948,349)
----------- ------------ ----------- ------------
(3,405) (48,827) (738) 6,780
----------- ------------ ----------- ------------
Capital Sub-Account
Accumulation Units:
Contract purchases and net transfers in 299,549 11,994,851 476,675 15,080,911
Terminated contracts and net transfers out (310,008) (12,447,856) (477,721) (14,957,014)
----------- ------------ ----------- ------------
10,459 (453,005) (1,046) 123,897
----------- ------------ ----------- ------------
Cash Management Sub-Account
Accumulation Units:
Contract purchases and net transfers in 40,947,833 60,392,520 28,701,853 40,888,881
Terminated contracts and net transfers out (35,911,189) (52,995,977) (27,814,834) (39,648,750)
----------- ------------ ----------- ------------
5,036,644 7,396,543 887,019 1,240,131
----------- ------------ ----------- ------------
Common Stock Sub-Account
Accumulation Units:
Contract purchases and net transfers in 585,115 24,933,937 584,818 21,245,552
Terminated contracts and net transfers out (608,245) (26,008,996) (533,311) (19,439,021)
----------- ------------ ----------- ------------
(23,130) (1,075,059) 51,507 1,806,531
----------- ------------ ----------- ------------
Communications and Information Sub-Account
Accumulation Units:
Contract purchases and net transfers in 1,216,263 35,884,214 1,336,799 26,057,001
Terminated contracts and net transfers out 1,358,367) (40,216,362) (1,426,919) (28,366,027)
----------- ------------ ----------- ------------
(142,104) (4,332,148) (90,120) (2,309,026)
----------- ------------ ----------- ------------
Frontier Sub-Account
Accumulation Units:
Contract purchases and net transfers in 848,373 14,699,046 920,590 17,444,970
Terminated contracts and net transfers out (1,562,533) (26,591,919) (1,042,222) (19,618,695)
----------- ------------ ----------- ------------
(714,160) (11,892,873) (121,632) (2,173,725)
----------- ------------ ----------- ------------
Global Growth Sub-Account
Accumulation Units:
Contract purchases and net transfers in 514,496 7,656,906 601,646 7,353,393
Terminated contracts and net transfers out (560,299) (8,348,375) (434,558) (5,272,421)
----------- ------------ ----------- ------------
(45,803) (691,469) 167,088 2,080,972
----------- ------------ ----------- ------------
Global Smaller Companies Sub-Account
Accumulation Units:
Contract purchases and net transfers in 487,918 7,603,927 479,301 7,291,622
Terminated contracts and net transfers out (801,390) (12,195,283) (549,248) (8,241,960)
----------- ------------ ----------- ------------
(313,472) (4,591,356) (69,947) (950,338)
----------- ------------ ----------- ------------
Global Technology Sub-Account
Accumulation Units:
Contract purchases and net transfers in 1,084,404 24,282,406 406,018 5,711,409
Terminated contracts and net transfers out (837,452) (19,276,197) (355,334) (4,982,165)
----------- ------------ ----------- ------------
246,952 5,006,209 50,684 729,244
----------- ------------ ----------- ------------
High-Yield Bond Sub-Account
Accumulation Units:
Contract purchases and net transfers in 1,232,239 16,959,707 1,589,267 22,003,390
Terminated contracts and net transfers out (1,608,165) (22,028,684) (980,942) (13,550,415)
----------- ------------ ----------- ------------
(375,926) (5,068,977) 608,325 8,452,975
----------- ------------ ----------- ------------
</TABLE>
--7--
<PAGE>
Canada Life of America Variable Annuity Account 2
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31, 1999 Year Ended December 31, 1998
---------------------------- ----------------------------
Units Amount Units Amount
----------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Income Sub-Account
Accumulation Units:
Contract purchases and net transfers in 116,816 $ 2,770,238 145,220 $ 3,209,039
Terminated contracts and net transfers out (170,231) (3,992,569) (136,996) (3,030,842)
----------- ----------- ------------ ------------
(53,415) (1,222,331) 8,224 178,197
----------- ----------- ------------ ------------
International Growth Sub-Account
Accumulation Units:
Contract purchases and net transfers in 192,473 3,273,321 234,066 3,590,169
Terminated contracts and net transfers out (285,428) (4,808,185) (277,507) (4,235,471)
----------- ----------- ------------ ------------
(92,955) (1,534,864) (43,441) (645,302)
----------- ----------- ------------ ------------
Large-Cap Growth Sub-Account*
Accumulation Units:
Contract purchases and net transfers in 254,809 2,574,416 -- --
Terminated contracts and net transfers out (8,202) (88,270) -- --
----------- ----------- ------------ ------------
246,607 2,486,146 -- --
----------- ----------- ------------ ------------
Large-Cap Value Sub-Account
Accumulation Units:
Contract purchases and net transfers in 693,579 6,974,655 470,789 4,426,163
Terminated contracts and net transfers out (465,548) (4,688,576) (108,615) (1,010,685)
----------- ----------- ------------ ------------
228,031 2,286,079 362,174 3,415,478
----------- ----------- ------------ ------------
Small-Cap Value Sub-Account*
Accumulation Units:
Contract purchases and net transfers in 508,816 5,203,249 362,710 2,860,882
Terminated contracts and net transfers out (404,793) (4,248,022) (94,013) (766,870)
----------- ----------- ------------ ------------
104,023 955,227 268,697 2,094,012
=========== =========== ============ ============
Net increase (decrease) from unit transactions $(12,780,705) $ 14,049,826
============ ============
</TABLE>
__________________
* From commencement of operations.
6. Mortality and Expense Risk (M and E) Charges
CLICA assumes mortality and expense risks related to the operations of Variable
Annuity Account 2 and deducts a charge equal to an effective annual rate of
1.25% of the net asset value of each Sub-Account at each valuation period. In
addition, at each valuation period an effective annual rate of 0.15% of the net
asset value of each Sub-Account was deducted as daily administration fees.
7. Net Assets
Net assets at December 31, 1999, consisted of the following:
<TABLE>
<CAPTION>
Accumulated Net Net
Investment Realized Unrealized
Accumulated Income Gain (Loss) (Depreciation) Appreciation Combined
Unit M and E and Capital on of Net
Sub-Account Transactions Charges Gains Investments Investments Assets
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Bond $ 4,479,553 $ (249,973) $ 1,210,252 $ (60,932) $ (468,252) $ 4,910,648
Capital 11,411,808 (849,979) 9,019,763 2,581,999 4,492,328 26,655,919
Cash Management 15,390,200 (663,657) 2,131,084 -- -- 16,857,627
Common Stock 25,232,296 (1,863,480) 21,926,017 3,227,037 (2,846,553) 45,675,317
Communications and Information 53,408,336 (4,663,265) 50,620,608 9,649,818 63,024,385 172,039,882
Frontier 12,716,961 (1,558,958) 6,306,959 (207,756) 3,682,205 20,939,411
Global Growth 5,907,643 (267,513) 1,144,797 1,039,038 3,137,240 10,961,205
Global Smaller Companies 12,231,009 (982,656) 2,062,353 950,497 4,518,691 18,779,894
Global Technology 8,692,448 (237,827) 2,404,704 3,662,893 5,557,687 20,079,905
High-Yield Bond 23,109,119 (1,159,632) 8,064,833 (604,285) (4,183,932) 25,226,103
Income 5,608,919 (533,627) 3,447,909 81,984 (724,586) 7,880,599
International Growth 5,526,222 (505,213) 2,104,479 1,161,430 1,572,407 9,859,325
Large-Cap Growth 2,486,146 (15,838) -- 15,637 484,748 2,970,693
Large-Cap Value 5,701,557 (87,890) 173,326 (10,378) (185,258) 5,591,357
Small-Cap Value 3,049,239 (64,381) 1,001,607 99,002 2,014 4,087,481
------------ ------------ ------------ ----------- ----------- ------------
$194,951,456 $(13,703,889) $111,618,691 $21,585,984 $78,063,124 $392,515,366
============ ============ ============ =========== =========== ============
</TABLE>
8. Unit Values
Unit Values as reported are calculated by dividing total net assets by total
units for each Sub-Account.
--8--
<PAGE>
Canada Life of America Variable Annuity Account 2
- -------------------------------------------------------------------------------
Report of Independent Auditors
- -------------------------------------------------------------------------------
Board of Directors of Canada Life Insurance Company of America
and Contract Owners of Canada Life of America Variable Annuity Account 2
We have audited the accompanying statement of net assets of Canada Life of
America Variable Annuity Account 2 (comprising, respectively, the Bond, Capital,
Cash Management, Common Stock, Communications and Information, Frontier, Global
Growth, Global Smaller Companies, Global Technology, High-Yield Bond, Income,
International Growth, Large-Cap Growth, Large-Cap Value and Small-Cap Value Sub-
Accounts) as of December 31, 1999, and the related statements of operations and
changes in net assets for the periods indicated therein. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
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 as of December 31, 1999, by
correspondence with the custodian. 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, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
sub-accounts constituting the Canada Life of America Variable Annuity Account 2
at December 31, 1999, and the results of their operations and the changes in
their net assets for each of the periods indicated therein in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Atlanta, Georgia
February 2, 2000
--9--
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
Seligman Portfolios, Inc.
Portfolio Overview
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
<TABLE>
<CAPTION>
Principal Amount
or Shares Holdings
-----------------------
<S> <C> <C>
Additions Increase 12/31/99
- -------------------------
SELIGMAN BOND PORTFOLIO
Mortgage-Backed Securities
FNMA 6 1/2%, 4/29/2009............. $160,000 $ 160,000
FHLMC GOLD 6%, 11/1/2010........... 80,329 80,329
Corporate Bonds
Allstate 7.20%, 12/1/2009.......... 75,000 75,000
American Home Products 7.90%,
2/15/2005......................... 75,000 75,000
Bank of New York 7.30%, 12/1/2009.. 75,000 75,000
Delta Air Lines 7.70%, 12/15/2005.. 75,000 75,000
Lyondell Chemicals 9 5/8%,
5/1/2007.......................... 100,000 100,000
Asset-Backed Securities
PP&L Transition 6.83%, 3/25/2007... 75,000 75,000
US West Communications 7.20%,
11/1/2004......................... 75,000 75,000
Wal-Mart Stores 6.55%, 8/10/2004... 85,000 85,000
</TABLE>
<TABLE>
<CAPTION>
Principal Amount
or Shares
--------------------
Holdings
Reductions Decrease 12/31/99
- -------------------------- -------- --------
<S> <C> <C>
US Government and Government
Agency
US Treasury Bonds:
8 3/4%, 5/15/2020................. $200,000 $ 300,000
7 1/4%, 8/15/2022................. 300,000 200,000
US Treasury Notes
6 1/4%, 10/31/2001................ 200,000 --
Mortgage-Backed Securities
FNMA 5.795%, 1/1/2009.............. 149,321 --
Corporate Bonds
Boston Scientific 6 5/8%,
3/15/2005......................... 75,000 100,000
Chrysler Financial 6.09%,
4/6/2001.......................... 200,000 --
Enron Oil & Gas 6%, 12/15/2008..... 100,000 --
Equifax 6.30%, 7/1/2005............ 100,000 --
National City 6 7/8%, 5/15/2019.... 100,000 --
Sprint Capital 6 1/8%, 11/15/2008.. 200,000 --
SELIGMAN CAPITAL PORTFOLIO
Common Stocks
Avery Dennison..................... 7,300 shs. 7,300 shs.
BMC Software....................... 5,500 5,500
Cadence Design Systems............. 31,200 31,200
Concord............................ 16,500 16,500
Limited............................ 13,400 13,400
Nucor.............................. 8,200 8,200
Quintiles Transnational............ 11,000 11,000
Reader's Digest Association........ 10,600 10,600
Royal Caribbean Cruises............ 8,600 8,600
Symbol Technologies................ 10,300 12,100
Common Stocks
Anadarko Petroleum................. 13,500 shs. --
Apollo Group (Class A)............. 19,400 --
Applied Power (Class A)............ 14,600 --
Comdisco........................... 22,300 --
General Instrument................. 10,600 --
Infinity Broadcasting (Class A).... 23,000 --
Molex.............................. 12,000 5,700 shs.
Sealed Air......................... 9,200 --
Snyder Communications.............. 20,100 --
Williams-Sonoma.................... 11,800 4,500
SELIGMAN COMMON STOCK PORTFOLIO
Common Stocks
Agilent Technologies............... 7,000 7,000
Bank of America.................... 6,234 18,339
Clorox............................. 6,300 13,600 (1)
Gillette........................... 13,300 13,300
Merrill Lynch...................... 6,700 6,700
Nortel Networks.................... 5,100 5,100
Pitney Bowes....................... 9,000 9,000
Procter & Gamble................... 1,900 7,200
Raytheon (Class B)................. 7,200 15,100
Williams Companies................. 7,300 26,900
Common Stocks
Bristol-Myers Squibb............... 7,800 8,200
Citigroup.......................... 10,307 17,500
DQE................................ 12,700 --
Fort James......................... 14,300 --
General Electric................... 4,400 12,100
Honeywell International(2)......... 7,000 7,300
Microsoft.......................... 3,300 18,800
Pharmacia & Upjohn................. 10,000 --
Sonat.............................. 20,700 --
Washington Mutual.................. 17,296 --
</TABLE>
- --------------------
See footnotes on page P-9.
--P-1--
<PAGE>
Seligman Portfolios, Inc.
Portfolio Overview (continued)
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
Shares
-------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
SELIGMAN COMMUNICATIONS
AND INFORMATION PORTFOLIO
Common Stocks
AMFM(3).............................................. 24,800 122,500
Charter Communications............................... 91,800 91,800
Compuware............................................ 58,000 106,600
Intel................................................ 40,300 40,300
Micron Technology.................................... 40,100 40,100
Microsoft............................................ 25,400 66,900
Rational Software.................................... 50,900 50,900
Sungard Data Systems................................. 76,900 97,600
Synopsys............................................. 29,000 96,400
Xircom............................................... 35,100 35,100
Shares
-------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
Common Stocks
ASM Lithography...................................... 25,100 --
BMC Software......................................... 20,100 15,300
Check Point Software Technologies.................... 31,400 37,800
Clear Channel Communications......................... 31,400 9,200
Comdisco............................................. 47,200 26,700
Electronic Arts...................................... 36,500 10,100
KLA-Tencor........................................... 32,200 12,100
MediaOne Group....................................... 23,500 45,400
Solectron (15)....................................... 87,500 --
Tellabs.............................................. 20,600 --
SELIGMAN FRONTIER PORTFOLIO
Common Stocks
Apex(4).............................................. 10,700 10,700
CBT Group (ADRs)..................................... 7,100 7,100
CSG Systems International............................ 10,100 10,100
Engage Technologies.................................. 6,600 6,600
Hadco................................................ 3,800 3,800
Inet Technologies.................................... 3,100 3,100
NOVA................................................. 9,700 23,033
Pegasus Communications............................... 3,300 3,300
US Foodservice....................................... 7,900 33,100 (5)
Xpedior.............................................. 7,300 7,300
Common Stocks
Analog Devices....................................... 9,100 --
ANTEC................................................ 15,200 --
AVX.................................................. 16,000 9,700
Burr-Brown........................................... 17,000 24,075 (6)
Calpine.............................................. 10,200 --
KLA-Tencor........................................... 5,000 --
Microchip Technology................................. 8,300 5,600
Novellus Systems..................................... 4,800 --
PMC-Sierra........................................... 4,400 1,400
Sanmina.............................................. 5,900 --
SELIGMAN GLOBAL
GROWTH PORTFOLIO
Common Stocks
America Online....................................... 800 2,800 (8)
BMC Software......................................... 2,700 2,700
Cintas............................................... 2,100 3,700
Coca-Cola............................................ 1,200 1,200
Compuware............................................ 6,000 6,000
Corning.............................................. 1,800 1,800
MCI Worldcom......................................... 1,400 3,150 (7)
Meitec............................................... 2,300 2,300
Numico............................................... 2,650 2,650
Touei Housing........................................ 2,000 2,000
Common Stocks
Alza................................................. 3,200 --
AT&T................................................. 3,150 --
Honeywell International (2).......................... 2,300 --
Kadokawa Shoten Publishing........................... 400 --
Merck................................................ 1,400 --
NTT Mobile Communications............................ 7 3
Nuevo Grupo Iusacell (9)............................. 6,000 --
Phillip Morris....................................... 3,200 --
Sidel................................................ 765 --
Valeo................................................ 1,430 --
_____________________
See footnotes on page P-9
--P-2--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL
GROWTH PORTFOLIO
DIVERSIFICATION OF NET ASSETS*
<TABLE>
<CAPTION>
December 31, 1999
Percent of Net Assets December 31,
--------------------- --------------
Issues Cost Value 1999 1998
-------- ---------- ----------- ------ ------
<S> <C> <C> <C> <C> <C>
Common Stocks
Aerospace......................................................... -- -- -- -- 0.6
Automotive and Related............................................ 1 $ 78,503 $ 116,971 1.0 3.2
Business Goods and Services....................................... 6 571,412 878,581 7.4 9.1
Capital Goods..................................................... -- -- -- -- 0.5
Commercial Services............................................... 2 125,154 161,850 1.4 0.2
Communications Services........................................... 1 48,300 60,375 0.5 --
Computer and Technology Related................................... 13 1,085,207 2,247,568 18.9 6.2
Construction and Property......................................... 2 121,115 119,784 1.0 2.1
Consumer Goods and Services....................................... 7 437,523 619,051 5.2 8.6
Consumer Staples.................................................. 1 71,910 69,900 0.6 --
Diversified....................................................... 4 363,765 646,909 5.4 3.3
Drugs and Health Care............................................. 7 556,374 642,775 5.4 11.6
Electric and Gas Utilities........................................ 1 98,349 186,875 1.6 1.7
Electronics....................................................... 3 200,132 482,934 4.1 4.3
Electronics Capital Equipment..................................... 1 32,385 202,252 1.7 1.0
Entertainment and Leisure......................................... 6 387,146 437,273 3.7 4.9
Financial Services................................................ 11 659,626 1,027,916 8.6 7.2
Industrial Goods and Services..................................... 2 134,260 98,877 0.8 1.0
Manufacturing and Industrial Equipment............................ 2 122,518 75,530 0.6 1.1
Media............................................................. 1 136,588 262,144 2.2 2.0
Resources......................................................... 1 125,181 132,825 1.1 0.6
Restaurants....................................................... 1 100,508 94,303 0.8 1.2
Retailing......................................................... 6 447,138 411,870 3.5 7.5
Support Services.................................................. 1 28,746 17,933 0.2 0.2
Telecommunications................................................ 17 990,960 2,450,386 20.6 11.4
Tobacco........................................................... 1 104,447 92,992 0.8 3.3
Transportation.................................................... 1 119,418 145,241 1.2 1.2
------ ---------- ----------- ------ ------
99 7,146,665 11,683,115 98.3 94.0
Other Assets Less Liabilities..................................... -- 205,638 205,638 1.7 6.0
------ ---------- ----------- ------ ------
Net Assets........................................................ 99 $7,352,303 $11,888,753 100.0 100.0
====== ========== =========== ====== ======
</TABLE>
SELIGMAN GLOBAL
SMALLER COMPANIES PORTFOLIO
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
Shares
--------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
Common Stocks
Apex (4)........................................ 2,200 2,700
Clarica Life Insurance.......................... 4,500 4,500
CSG Systems International....................... 2,900 2,900
Engage Technologies............................. 2,200 2,200
Kamps........................................... 1,264 1,264
Mandator ....................................... 16,311 16,311
MemberWorks..................................... 2,000 4,800
NOVA............................................ 2,400 6,218
Tecis Holding................................... 710 2,340 (10)
Xpedior......................................... 2,200 2,200
Shares
--------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
Common Stocks
ANTEC........................................... 3,900 --
AVX............................................. 4,800 2,900
Burr-Brown...................................... 4,100 6,750 (11)
Calpine......................................... 2,500 --
Capital Radio .................................. 20,500 --
CMG............................................. 8,500 --
Cobham.......................................... 8,950 --
Fujitsu Business Systems........................ 2,500 --
Green Property.................................. 110,000 --
Sankyo.......................................... 2,600 --
________________________
See footnotes on page P-9.
--P-3--
<PAGE>
Seligman Portfolios, Inc.
Portfolio Overview (continued)
SELIGMAN GLOBAL
SMALLER COMPANIES PORTFOLIO
DIVERSIFICATION OF NET ASSETS*
<TABLE>
<CAPTION>
December 31, 1999
Percent of Net Assets December 31,
---------------------------------- --------------
Issues Cost Value 1999 1998
-------- ----------- ----------- ------ ------
<S> <C> <C> <C> <C> <C>
Common and Preferred Stocks
Advertising....................................................... 1 $ 24,853 $ 60,727 0.3 1.2
Automotive Parts Manufacturing.................................... 4 200,365 272,790 1.4 1.5
Building Materials................................................ -- -- -- -- 0.7
Business Services................................................. 18 1,367,257 1,771,639 9.0 11.6
Cable Systems and Satellite Video................................. 1 55,313 87,188 0.4 --
Capital Goods..................................................... 3 139,848 109,762 0.6 1.8
Chemicals......................................................... 3 238,361 209,194 1.1 1.1
Communications Infrastructure..................................... 1 34,835 26,187 0.1 --
Computer Software................................................. 26 1,279,840 2,916,415 14.9 5.3
Construction and Property......................................... 10 749,418 738,695 3.8 6.0
Consulting Services............................................... 2 54,880 89,469 0.5 --
Consumer Goods and Services....................................... 18 1,093,765 1,254,804 6.4 8.8
Contract Manufacturing/Circuit Boards............................. 1 52,017 56,100 0.3 --
Distribution...................................................... 1 48,470 36,622 0.2 0.5
Drugs and Health Care............................................. 17 1,040,449 924,360 4.7 7.9
Electric Utilities................................................ 1 22,483 25,230 0.1 1.9
Electrical Distribution........................................... 1 47,169 129,772 0.7 0.3
Electronics....................................................... 17 445,060 1,004,651 5.1 2.9
Energy............................................................ 4 178,955 198,635 1.0 0.7
Financial Services................................................ 15 702,475 786,292 4.0 2.9
Industrial Goods and Services..................................... 3 269,182 475,248 2.4 3.3
Leisure and Hotels................................................ 3 124,989 169,627 0.9 2.3
Manufacturing..................................................... 18 993,431 1,222,811 6.2 5.7
Media............................................................. 10 716,837 1,412,938 7.2 7.1
Medical Products and Technology................................... 11 341,903 392,818 2.0 3.6
Metals............................................................ 1 43,380 40,708 0.2 0.3
Paper and Printing................................................ 4 192,985 151,525 0.8 0.3
Resources......................................................... 2 76,007 69,880 0.4 0.3
Restaurants....................................................... 3 173,709 296,112 1.5 1.5
Retailing......................................................... 14 915,321 888,980 4.5 5.6
Schools........................................................... 3 234,106 173,625 0.9 0.1
Support Services.................................................. 1 29,048 50,231 0.3 2.2
Technology........................................................ 15 816,708 1,380,799 7.1 5.6
Telecommunications................................................ 13 681,491 1,056,355 5.4 2.2
Transportation.................................................... 9 416,909 578,808 3.0 2.4
Veterinary Products............................................... 1 112,069 139,610 0.7 1.0
Miscellaneous..................................................... 1 24,550 26,987 0.1 0.1
----- ----------- ----------- ------ ------
256 13,938,438 19,225,594 98.2 98.7
Other Assets Less Liabilities..................................... -- 343,052 343,052 1.8 1.3
----- ----------- ----------- ------ ------
Net Assets........................................................ 256 $14,281,490 $19,568,646 100.0 100.0
===== =========== =========== ====== ======
</TABLE>
______________________
See footnotes on page P-9.
--P-4--
<PAGE>
Seligman Portfolios, Inc.
SELIGMAN GLOBAL
TECHNOLOGY PORTFOLIO
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
Shares
---------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
Common Stocks
Adaptec........................................ 4,300 5,700
Advantest...................................... 2,000 2,000
Compuware...................................... 8,500 11,400
Microsoft...................................... 2,100 4,600
Novellus Systems............................... 2,900 4,000
Rohm........................................... 1,000 1,000
Sony........................................... 2,000 2,000
Symantec....................................... 5,700 5,700
TDK............................................ 2,000 2,000
Vodafone....................................... 35,000 35,000
Shares
---------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
Common Stocks
ASM Lithography................................ 1,400 2,600
Comdisco....................................... 2,700 --
Invensys....................................... 26,000 --
KLA-Tencor..................................... 2,200 --
Merkantildata.................................. 9,000 --
Misys.......................................... 18,900 --
NEC............................................ 5,000 --
Rhone Poulenc.................................. 1,200 --
SBS Broadcasting............................... 1,600 --
Solectron (15)................................. 3,600 --
DIVERSIFICATION OF NET ASSETS*
<TABLE>
<CAPTION>
December 31, 1999
Percent of Net Assets December 31,
---------------------------------- ---------------
Issues Cost Value 1999 1998
-------- ----------- ----------- ------ ------
<S> <C> <C> <C> <C> <C>
Common Stocks
Cable Systems and Satellite Video................................. 1 $ 54,805 $ 96,115 0.4 --
Communications Infrastructure..................................... 1 260,345 316,349 1.4 --
Computer and Business Services.................................... 24 1,096,887 1,776,827 8.1 11.2
Computer Hardware/Peripherals..................................... 6 935,968 1,244,615 5.6 12.0
Computer Software................................................. 5 2,684,354 4,721,991 21.4 22.7
Contract Manufacturing/Circuit Boards............................. 6 455,407 683,815 3.1 3.3
Distributors...................................................... -- -- -- -- 0.8
Electronics....................................................... 4 1,634,514 3,441,361 15.6 11.7
Electronics Capital Equipment..................................... 14 1,509,007 2,903,357 13.2 4.3
Machinery and Equipment........................................... 11 73,142 205,872 0.9 2.4
Manufacturing..................................................... 1 216,546 173,780 0.8 --
Media............................................................. 2 192,506 185,375 0.8 2.7
Medical Products and Technology................................... 2 59,312 74,822 0.3 4.2
Networking/Communications Infrastructure.......................... -- -- -- -- 4.0
Semiconductors.................................................... 1 1,915,149 3,416,570 15.5 5.4
Telecommunications................................................ 14 1,394,332 2,362,885 10.7 8.3
Miscellaneous..................................................... -- -- -- -- 0.6
------ ----------- ----------- ------ ------
92 12,482,274 21,603,734 97.8 93.6
Other Assets Less Liabilities..................................... -- 483,613 483,613 2.2 6.4
------ ----------- ----------- ------ ------
Net Assets........................................................ 92 $12,965,887 $22,087,347 100.0 100.0
====== =========== =========== ====== ======
</TABLE>
_____________________
See footnotes on page P-9.
--P-5--
<PAGE>
Seligman Portfolios, Inc.
Portfolio Overview (continued)
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
<TABLE>
<CAPTION>
Principal Amount
or Shares
-----------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
<S> <C> <C>
SELIGMAN HIGH-YIELD BOND PORTFOLIO
Corporate Bonds
Abraxas Petroleum 11 1/2%,
11/1/2004.......................................... $105,000 $105,000
Allied Waste North America 10%,
8/1/2009........................................... 375,000 375,000
Exodus Communications 11 1/4%,
7/1/2008........................................... 140,000 260,000
Global Crossing Holdings 9 1/2%,
11/15/2009......................................... 300,000 300,000
Globenet Communications 13%,
7/15/2007.......................................... 200,000 200,000
Hadco 9 1/2%, 6/15/2008.............................. 155,000 160,000
TDL Infomedia Holdings 0%
(15 1/2%), 10/15/2010.............................. 600,000 600,000
Trump Atlantic City Funding
11 1/4%, 5/1/2006.................................. 280,000 580,000
World Access 13 1/4%,
1/15/2008.......................................... 285,000 285,000
Worldwide Fiber 12%,
8/1/2009........................................... 350,000 350,000
<CAPTION>
Principal Amount
or Shares
-----------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
<S> <C> <C>
Corporate Bonds
Abraxas Petroleum 11 1/2%,
11/1/2004.......................................... $150,000 --
Alliance Imaging 9 5/8%,
12/15/2005......................................... 170,000 --
Ameriserv Food Distributors
10 1/8%, 7/15/2007................................. 340,000 --
Facilicom International 10 1/2%,
1/15/2008.......................................... 285,000 --
Rogers Cablesystems 11%,
12/1/2015.......................................... 100,000 $135,000
SFX Broadcasting 10 3/4%,
5/15/2006.......................................... 135,000 --
Unisys 11 3/4%, 10/15/2004........................... 175,000 --
Viasystems 9 3/4%, 6/1/2007.......................... 140,000 450,000
Common Stocks
AMFM (3)............................................. 2,210 shs. 3,500 shs.
Price Communications................................. 8,466 11,000 (13)
SELIGMAN INCOME PORTFOLIO
Common Stocks
Bank of America...................................... 1,403 shs. 2,421 shs.
General Electric..................................... 1,300 1,300
International Business Machines...................... 600 1,000
Merck................................................ 1,200 1,200
Microsoft............................................ 1,600 2,600
Pepsico.............................................. 2,300 2,300
Raytheon (Class B)................................... 1,800 1,800
United Technologies.................................. 2,700 2,700
Corporate Bonds
Lyondell Chemical 9 5/8%,
5/1/2007........................................... $100,000 $100,000
US Government Agency Securities
Federal National Mortgage
Association 6%, 11/1/2010.......................... 91,805 91,805
Common Stocks
Bristol-Myers Squibb................................. 3,000 shs. 1,000 shs.
GATX................................................. 4,800 --
GTE.................................................. 2,400 1,300
Lincoln National..................................... 3,000 --
Sonat................................................ 4,700 --
Unocal............................................... 5,100 --
Washington Mutual.................................... 4,536 --
Corporate Bonds
Associated Corp. of North
America 5 3/4%, 11/1/2003.......................... $150,000 $100,000
US Government and Government Agency Securities
Federal National Mortgage Association 5.795%,
1/1/2009........................................... 199,094 --
US Treasury Notes 6 1/2%,
5/15/2005.......................................... 500,000 --
</TABLE>
_____________________
See footnotes on page P-9.
--P-6--
<PAGE>
Seligman Portfolios, Inc.
SELIGMAN INTERNATIONAL
GROWTH PORTFOLIO
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
<TABLE>
<CAPTION>
Shares
-----------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
<S> <C> <C>
Common Stocks
ACOM................................................. 1,200 1,200
Asahi Bank........................................... 19,000 19,000
Unicredito Italiano.................................. 23,208 23,208
Glaxo Wellcome....................................... 5,000 5,000
Oracle............................................... 300 300
Oriental Land........................................ 1,600 1,600
Rinnai............................................... 5,000 5,000
Thyssen Krupp........................................ 4,430 4,430
Toshiba.............................................. 16,000 16,000
Veba................................................. 1,884 1,884
<CAPTION>
Shares
-----------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
<S> <C> <C>
Common Stocks
Benckiser............................................ 1,785 --
DaimlerChrysler...................................... 1,443 --
Matav-(ADRs)......................................... 7,700 --
Nordbanken Holding................................... 17,805 --
Stmicroelectronics................................... 863 661 (12)
Suez Lyonnaise des Eaux.............................. 761 --
Takefuji............................................. 600 --
TDK.................................................. 1,000 --
Tesco................................................ 49,500 --
WPP Group............................................ 7,500 12,500
</TABLE>
DIVERSIFICATION OF NET ASSETS*
<TABLE>
<CAPTION>
December 31, 1999
Percent of Net Assets December 31,
---------------------------------- ----------------
Issues Cost Value 1999 1998
-------- ---------- ----------- ------ ------
<S> <C> <C> <C> <C> <C>
Common Stocks
Automotive and Related............................................ 3 $ 228,887 $ 196,726 1.9 2.1
Banking........................................................... 12 1,016,495 1,245,557 12.1 12.6
Business Services................................................. 4 324,885 595,617 5.8 0.5
Chemical.......................................................... 5 246,053 286,417 2.8 2.2
Construction and Property......................................... -- -- -- -- 4.6
Consumer Products................................................. 7 535,854 602,976 5.9 6.5
Drugs and Health Care............................................. 3 346,210 371,055 3.6 --
Electronics....................................................... 6 344,981 561,516 5.5 1.7
Entertainment and Leisure......................................... 3 259,351 418,956 4.1 1.9
Financial Services................................................ 6 543,002 549,832 5.4 2.7
Health and Household.............................................. 5 495,018 500,830 4.9 6.9
Industrial Goods and Services..................................... 5 349,041 625,079 6.1 6.2
Insurance......................................................... 4 303,663 454,271 4.4 8.2
Manufacturing..................................................... 5 437,857 534,334 5.2 3.4
Media............................................................. 2 116,300 326,289 3.2 1.2
Metals............................................................ 2 94,763 103,099 1.0 0.1
Publishing........................................................ 2 175,103 205,100 2.0 --
Resources......................................................... 4 407,205 519,117 5.1 7.0
Retail............................................................ 2 134,776 125,217 1.2 8.5
Telecommunications................................................ 13 772,785 1,438,943 14.0 12.4
Tobacco........................................................... 1 56,273 50,424 0.5 1.4
Transportation.................................................... 1 52,036 82,119 0.8 3.1
Utilities......................................................... 2 212,111 180,290 1.8 4.5
Miscellaneous..................................................... -- -- -- -- 0.2
------ ---------- ----------- ------ ------
97 7,452,649 9,973,764 97.3 97.9
Other Assets Less Liabilities..................................... -- 274,725 274,725 2.7 2.1
------ ---------- ----------- ------ ------
Net Assets........................................................ 97 $7,727,374 $10,248,489 100.0 100.0
====== ========== =========== ====== ======
</TABLE>
_____________________
See footnotes on page P-9.
--P-7--
<PAGE>
Seligman Portfolios, Inc.
Portfolio Overview (continued)
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
Shares
-------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
SELIGMAN LARGE-CAP
GROWTH PORTFOLIO
Common Stocks
Carnival............................................. 1,100 1,100
Coca-Cola............................................ 1,750 2,350
Computer Associates International.................... 1,100 1,100
Corning.............................................. 700 700
General Electric..................................... 400 1,050
Lily (Eli)........................................... 700 700
Lucent Technologies.................................. 1,000 1,000
MCI WorldCom......................................... 900 2,325 (14)
Microsoft............................................ 800 1,800
Motorola............................................. 400 650
Shares
-------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
Common Stocks
AT&T................................................. 1,050 --
Bristol-Myers Squibb................................. 450 --
Cendant.............................................. 1,800 --
Honeywell International (2).......................... 650 550 (2)
Lowe's............................................... 500 --
Merck................................................ 400 500
Philip Morris........................................ 1,600 --
Raytheon (Class A)................................... 850 --
Time Warner.......................................... 500 350
Warner-Lambert....................................... 650 --
SELIGMAN LARGE-CAP VALUE PORTFOLIO
Common Stocks
Allstate............................................. 7,000 7,000
American Home Products............................... 1,900 1,900
Bank of America...................................... 1,000 3,205
Dial................................................. 2,000 7,400
Dow Chemical......................................... 1,000 1,000
El Paso Energy....................................... 1,900 1,900
Goodrich (B.F)....................................... 2,000 7,000
Humana............................................... 6,000 20,000
Safeway.............................................. 6,000 6,000
United Technologies.................................. 1,000 3,000
Common Stocks
Bristol-Myers Squibb................................. 1,000 2,200
Champion International............................... 1,200 3,700
General Electric..................................... 1,500 --
General Motors....................................... 500 2,500
Raychem.............................................. 6,450 --
Sears, Roebuck....................................... 4,000 --
Summit Bancorp....................................... 1,000 6,000
Tandy................................................ 2,000 3,000
United Healthcare.................................... 500 3,000
Xerox................................................ 2,400 --
_____________________
See footnotes on page P-9.
--P-8--
<PAGE>
Seligman Portfolios, Inc.
LARGEST PORTFOLIO CHANGES
During the Six Months Ended December 31, 1999
Shares
-------------------
Holdings
Additions Increase 12/31/99
- --------- -------- --------
SELIGMAN SMALL-CAP VALUE
PORTFOLIO
Common Stocks
Abercrombie & Fitch (Class A)........................ 2,000 4,000
AK Steel Holding..................................... 6,000 6,000
American National Can Group.......................... 8,000 8,000
Apria Healthcare Group............................... 8,000 8,000
Complete Business Solutions.......................... 6,000 6,000
Harman International Industries...................... 500 3,000
Midcoast Energy Resources............................ 5,000 5,000
Omnicare............................................. 15,000 15,000
Urban Outfitters..................................... 2,000 6,500
Valero Energy........................................ 7,000 7,000
Shares
-------------------
Holdings
Reductions Decrease 12/31/99
- ---------- -------- --------
Common Stocks
BMC Industries....................................... 12,800 --
Chirex............................................... 4,400 --
Dexter............................................... 3,750 --
Furon................................................ 8,000 --
Giant Cement Holding................................. 6,000 --
Liberty Financial.................................... 1,000 5,000
Marine Drilling...................................... 1,800 7,000
Merrill.............................................. 8,500 --
True North Communications............................ 1,000 3,500
Windmere-Durable Holdings............................ 3,500 10,000
____________
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
* "Diversification of Net Assets" is included for the Seligman International
Portfolios because their portfolio holdings are listed by country rather than by
industry in the "Portfolios of Investments."
(1) Includes 7,300 shares received as a result of a 2-for-1 stock split.
(2) Formerly AlliedSignal.
(3) Formerly Chancellor Media.
(4) Formerly Apex PC Solutions.
(5) Includes 14,400 shares received as a result of a 2-for-1 stock split.
(6) Includes 8,025 shares received as a result of a 3-for-2 stock split.
(7) Includes 1,050 shares received as a result of a 3-for-2 stock split.
(8) Includes 1,400 shares received as a result of a 2-for-1 stock split.
(9) Formerly Grupo Iusacell.
(10) Includes 1,560 shares received as a result of a 3-for-1 stock split.
(11) Includes 2,250 shares received as a result of a 3-for-2 stock split.
(12) Includes 121 shares received as a result of a 2-for-1 stock split.
(13) Includes 927 shares received as a result of a stock dividend.
(14) Includes 775 shares received as a result of a 2-for-1 stock split.
(15) Formerly SMART Modular Technologies.
--P-9--
<PAGE>
Seligman Portfolios, Inc.
Annual Performance Overview
The following charts compare a $10,000 hypothetical investment made in each
of Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash
Management Portfolio), for the 10-year period ended December 31, 1999, or since
inception through December 31, 1999, if less than 10 years, to a $10,000
hypothetical investment made in the appropriate benchmark indices and averages
for the same period. Accompanying each chart is a discussion of the investment
strategy and sector performance that affected the Portfolio during the past
year.
Seligman Bond Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date Bond Portfolio Lehman Bros. Government Bond Index Lipper Corporate Debt BBB-rated Funds Average
<S> <C> <C> <C>
12/31/1989 10000 10000 10000
03/31/1990 9834 9876 9811
06/30/1990 10127 10222 10149
09/30/1990 10166 10306 10043
12/31/1990 10614 10872 10436
31-Mar-91 10861 11108 10870
30-Jun-91 11015 11258 11098
30-Sep-91 11592 11900 11768
31-Dec-91 12161 12538 12382
31-Mar-92 11951 12318 12369
30-Jun-92 12283 12806 12865
30-Sep-92 12825 13439 13509
31-Dec-92 12841 13444 13522
31-Mar-93 13251 14052 14284
30-Jun-93 13552 14458 14815
30-Sep-93 13889 14928 15364
31-Dec-93 13866 14877 15469
31-Mar-94 13468 14429 14914
30-Jun-94 13318 14265 14583
30-Sep-94 13427 14325 14699
31-Dec-94 13396 14375 14674
31-Mar-95 13859 15052 15369
30-Jun-95 14813 15985 16549
30-Sep-95 15116 16268 16958
31-Dec-95 15966 17011 17771
31-Mar-96 15431 16627 17381
30-Jun-96 15370 16707 17470
30-Sep-96 15523 16988 17867
31-Dec-96 15981 17484 18539
31-Mar-97 15868 17342 18429
30-Jun-97 16385 17944 19195
30-Sep-97 16902 18545 19936
31-Dec-97 17417 19160 20430
31-Mar-98 17587 19450 20781
30-Jun-98 18080 19963 21199
30-Sep-98 18896.4 21067 21553
31-Dec-98 18845.37 21050 21707
31-Mar-99 18391.48 20749 21605
30-Jun-99 18028.37 20573 21320
30-Sep-99 18082.84 20709 21333
31-Dec-99 18000.82 20578 21340
</TABLE>
Nineteen ninety-nine was a difficult year for fixed-income securities.
During this time, the Federal Reserve Board increased the federal funds rate
three times, for a total of 75 additional basis points, while the US economy
continued to grow at a robust pace. These factors caused 30-year Treasury bond
yields to increase by 140 basis points, from 5.08% on December 31, 1998, to
6.48% on December 31, 1999.
In the second half of the fiscal year, we sold some intermediate-term bonds
in favor of shorter-term securities in response to the generally negative
operating environment for bonds. This defensive strategy benefited the
Portfolio's performance during the second half of the year.
We remained committed to pursuing favorable yield spreads, while at the
same time maintaining a high-quality portfolio. The average quality of the
Portfolio remained stable at AA. At year-end 1999, the Portfolio was 18%
invested in Treasuries, 5% in US government agency bonds, 13% in mortgage
pass-through securities, 3% in asset-backed securities, and 61% in corporate
bonds. During the year, the spread between Treasuries and corporates widened,
and we increased the Portfolio's exposure to corporates to pursue additional
yield. Over the course of the year, the Portfolio's yield increased from 5.61%
to 7.05%.
We believe that 2000 will provide a more positive environment for bonds
then did 1999. Yields are likely to stabilize, which should allow for positive
total returns. While the Federal Reserve Board is likely to remain cautious
regarding any inflationary pressures, we believe it will not be as aggressive as
it was in 1999.
Seligman Capital Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date Capital Portfolio Lipper MidCap Funds Average Rusell MidCap Growth Index
<S> <C> <C> <C>
12/31/1989 10000 10000 10000
03/31/1990 9682 9885 9648
06/30/1990 10852 10678 10474
09/30/1990 8296 8632 8354
12/31/1990 9682 9502 9487
31-Mar-91 11604 11552 11676
30-Jun-91 11759 11454 11495
30-Sep-91 13191 12476 12438
31-Dec-91 15399 13761 13949
31-Mar-92 14374 13831 13524
30-Jun-92 13315 13025 12895
30-Sep-92 14331 13476 13585
31-Dec-92 16445 15306 15163
31-Mar-93 16987 15598 15300
30-Jun-93 16687 15969 15301
30-Sep-93 17791 17137 16333
31-Dec-93 18361 17537 16860
31-Mar-94 17784 16998 16337
30-Jun-94 16224 16168 15619
30-Sep-94 17698 17459 16728
31-Dec-94 17518 17344 16495
31-Mar-95 18608 18585 18278
30-Jun-95 19725 20243 19746
30-Sep-95 21505 22351 21691
31-Dec-95 22278 22708 22099
31-Mar-96 23772 24077 23524
30-Jun-96 25400 25355 24404
30-Sep-96 26013 26151 25233
31-Dec-96 25511 26884 25963
31-Mar-97 24491 25401 25015
30-Jun-97 27837 29333 28697
30-Sep-97 31104 33536 32712
31-Dec-97 30946 32464 31813
31-Mar-98 34400 36440 35612
30-Jun-98 35255 35960 35590
30-Sep-98 28450 29469 29650
31-Dec-98 37813 36338 37499
31-Mar-99 36668 36231 38781
30-Jun-99 40938 40771 42822
30-Sep-99 40048 38729 40677
31-Dec-99 57979 49525 56732
</TABLE>
During 1999, growth stocks of all sizes generally delivered extraordinary
returns, while value stocks of all sizes generally lagged. A continued strong US
economy and improving worldwide economies, combined with low inflation, provided
a positive environment for growth stocks. Within the growth-stock universe,
technology -- driven by increased Internet demand and an explosion in wireless
communications -- was by far the best performing.
The growth stocks in the Portfolio were strong performers within this
supportive environment, with the technology industry the single most positive
influence on performance during the fiscal year.
- -----------------
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
--P-10--
<PAGE>
Seligman Portfolios, Inc.
Seligman Capital Portfolio (continued)
Despite the fact that the Portfolio was underweighted in the sector during the
period, the technology stocks it held delivered exceptional returns.
In the fiscal year, the Portfolio purchased several what we believe are
"best-of-class" Internet companies that focus on the business-to-business
applications that allow companies to reduce expenses and increase sales. We
believe that such companies, which contribute to increased efficiency in the
rest of the economy, will continue to have opportunities for growth for years to
come. The Portfolio had relatively low exposure to health care because we
believed that the group had become overvalued following a very strong 1998, and
there were uncertainties regarding pricing pressure due to potential changes in
Medicare drug benefits. This low exposure benefited overall performance since
this sector was a poor performer for the year.
Going forward, greater emphasis is likely to be placed on technology. In
particular, we will look for companies that use information technology to
increase sales and data warehousing, and for companies that are developing
innovative or improved products, especially in telecommunications. Within
technology, we anticipate remaining underweighted in hardware stocks and will
focus on software stocks, particularly those involved in business-to-business
e-commerce. We will also look for opportunities to gain more exposure to
wireless application protocol, which allows Internet access without a personal
computer (PC).
We believe that a favorable climate for continued global growth lies ahead,
based on several factors, including the broader acceptance of the euro, reduced
barriers to trade, and Japan's economic progress and financial reforms. This
environment would likely benefit mid-cap companies with export-driven revenues.
We will seek to gain additional exposure to stocks that are positioned to
benefit from the recoveries abroad, particularly in Japan.
Seligman Common Stock Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date Common Portfolio Lipper Growth & Income Funds Average S&P 500
<S> <C> <C> <C>
12/31/1989 10000 10000 10000
03/31/1990 9910 9747 9699
06/30/1990 10538 10250 10309
09/30/1990 8679 8898 8893
12/31/1990 9685 9548 9689
31-Mar-91 11416 10911 11097
30-Jun-91 11308 10891 11072
30-Sep-91 12094 11507 11664
31-Dec-91 12897 12344 12642
31-Mar-92 13142 12335 12322
30-Jun-92 13037 12368 12556
30-Sep-92 13570 12669 12951
31-Dec-92 14462 13433 13603
31-Mar-93 14981 14069 14197
30-Jun-93 15138 14195 14267
30-Sep-93 15519 14699 14635
31-Dec-93 16189 15041 14974
31-Mar-94 15529 14576 14407
30-Jun-94 15616 14524 14467
30-Sep-94 16405 15143 15175
31-Dec-94 16195 14916 15172
31-Mar-95 17359 16129 16649
30-Jun-95 18452 17422 18240
30-Sep-95 19604 18703 19690
31-Dec-95 20613 19616 20875
31-Mar-96 22028 20766 21996
30-Jun-96 23029 21483 22983
30-Sep-96 23470 22129 23694
31-Dec-96 24751 23829 25670
31-Mar-97 25031 24107 26358
30-Jun-97 28218 27587 30960
30-Sep-97 30348 30071 33279
31-Dec-97 30027 30302 34234
31-Mar-98 33494 33859 39010
30-Jun-98 33974 33938 40297
30-Sep-98 31299 29692 36288
31-Dec-98 37280 34988 44017
31-Mar-99 38180 35611 46209
30-Jun-99 41262 38834 49467
30-Sep-99 38020 35749 46375
31-Dec-99 42181 39589 53276
31-Dec-97 30027 30302 34234
31-Mar-98 33494 33859 39010
30-Jun-98 33974 33938 40297
30-Sep-98 31299 29692 36288
31-Dec-98 37280 34988 44017
31-Mar-99 38180 35611 46209
30-Jun-99 41262 38834 49467
30-Sep-99 38020 35749 46375
31-Dec-99 42181 39589 53276
</TABLE>
Seligman Common Stock Portfolio pursues companies with attractive yields,
stable earnings growth, strong fundamentals, and reasonable valuations. In 1999,
this strategy was out of favor, and investors seemed willing to pay any price
for stocks that had been on an upward trend, with little or no regard for
valuations and fundamentals. However, we believe that remaining true to our
discipline, and avoiding stocks whose valuations seem excessive, will best serve
the Portfolio's shareholders over the long term.
Steadily rising yields over the course of the year had a negative effect on
interest-rate sensitive sectors, such as the financial sector -- one of the
Portfolio's most heavily weighted industries. The strongest area of the
portfolio -- as for the market -- was technology. While the Portfolio was
underweighted in technology, the sector was such a strong performer that it was
the single largest contributor to overall portfolio returns. However, the
Portfolio's underweighting in technology hurt performance relative to the
broader market.
The Portfolio benefited from its exposure to both basic materials and
capital goods, which were both strong market performers during the year. Health
care was one of the worst-performing market sectors because of uncertainty
regarding potential Medicare price controls for drug companies. The Portfolio
was about market-weighted in this sector, so our exposure to this sector didn't
hurt relative performance, but did negatively impact absolute returns. Consumer
staples also performed poorly as investors focused on these companies' lack of
pricing flexibility.
We are cautiously optimistic regarding the outlook for value stocks and for
the Portfolio in the year 2000. We do not believe that the type of market that
prevailed in 1999-- one in which economic and company-specific fundamentals were
largely ignored-- can continue. Many good companies languished in 1999 and are
now trading at what we believe are exceptionally attractive prices. It is our
conviction that, ultimately, companies that are more attractively priced within
their industry groups will be recognized by the market.
- ----------------------
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-11--
<PAGE>
Seligman Portfolios, Inc.
Annual Performance Overview
Seligman Communications and Information Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date C&I Portfolio Lipper Science & Technology Funds Average S&P 500
<S> <C> <C> <C>
11-Oct-94 10000 10000 10000
31-Dec-94 10440 10608 9998
31-Mar-95 11030 11435 10972
30-Jun-95 14690 13848 12020
30-Sep-95 16950 15835 12975
31-Dec-95 14464 15188 13756
31-Mar-96 13618 15485 14495
30-Jun-96 13993 16665 15146
30-Sep-96 15139 17823 15614
31-Dec-96 15739 18602 16916
31-Mar-97 14271 16818 17370
30-Jun-97 16961 19906 20402
30-Sep-97 22018 23587 21930
31-Dec-97 19237 20833 22560
31-Mar-98 22103 24518 25707
30-Jun-98 21765 25480 26555
30-Sep-98 18105 22682 23913
31-Dec-98 26256 32033 29007
31-Mar-99 26715 37758 30451
30-Jun-99 31755 43010 32598
30-Sep-99 33624 46385 30561
31-Dec-99 48787 76124 35108
</TABLE>
Technology is playing an ever-increasing role in the economy and in the
stock market, and in 1999 the industry was by far the best-performing market
sector. Technology's importance received public attention when, in November, the
Dow Jones Industrial Average, the most widely watched stock-market index, shed
four old economy stocks to make room for four new economy stocks. Three of these
four stocks -- Intel, Microsoft, and SBC Communications -- are technology
stocks.
We were pleased with the performances of a number of the Portfolio's
holdings during 1999. Among the sectors that performed well for the Portfolio
were semiconductors and semiconductor equipment, satellites, computer hardware,
contract manufacturing, radio, and security software. The networking and
telecommunications equipment sectors of the portfolio performed extremely well;
however, the Portfolio's underweighting in these sectors hurt relative
performance. The Portfolio's holdings in computer-aided design software
performed poorly over the course of the year due to continued weakness in Asia
and a leveling off in demand in the United States.
While industry fundamentals are outstanding, valuations are extremely high
by historical standards. Hence, we have become more vigilant in evaluating the
risk of the companies held by the Portfolio, and we have begun to pare back or
eliminate some of the most expensive securities.
In spite of high valuations in many technology stocks, we continue to find
attractive values, particularly in the semiconductor and software sectors.
Within the high-growth Internet sector, we anticipate finding the most
attractive opportunities in business-to-business Internet. We don't expect to
find as many suitable investments in business-to-consumer, but believe that
there will be selective opportunities in this area. We also believe that, as the
Internet grows in acceptance and usage worldwide, companies that supply the
software and equipment that support this growth will continue to benefit. In
general, technology companies are truly changing global business. We believe
that the world is only in the early stages of technological expansion, and that
the sector will thus continue to offer enormous opportunities for long-term
investors.
Seligman Frontier Portfolio
The chart and total return do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date Frontier Portfolio Russell 2000 Growth Index Russell 2000 Index Lipper SmallCap Fund Average
<S> <C> <C> <C> <C>
10/11/1994 10000 10000 10000 10000
12/31/1994 10580 9926 9813 9968
03/31/1995 11300 10470 10265 10559
06/30/1995 12260 11509 11227 11480
09/30/1995 13780 12817 12336 12815
12/31/1995 14101 13007 12604 13110
03/31/1996 15443 13753 13247 13965
06/30/1996 17065 14557 13909 15052
09/30/1996 17731 14433 13957 15364
12/31/1996 17476 14470 14682 15777
03/31/1997 15855 12952 13923 14799
06/30/1997 19203 15226 16180 17328
09/30/1997 21455 17802 18588 20162
12/31/1997 20331 16343 17965 19245
03/31/1998 22650 18284 19773 21354
06/30/1998 22044 17235 18851 20489
09/30/1998 16839 13381 15053 16165
12/31/1998 20034 16544 17508 19248
03/31/1999 16324 16267 16559 18048
06/30/1999 18823 18666 19134 20929
09/30/1999 18115 17747 17925 20294
12/31/1999 23358 23673 21232 25031
</TABLE>
In 1999, small-capitalization stocks began to deliver returns that were
competitive with large-company stocks. However, last year's markets were
extraordinarily narrow, regardless of market capitalization. Growth stocks, and
particularly technology stocks, outpaced the rest of the market by a wide
margin.
In the small-cap market, the stocks of companies with little or no earnings
outperformed for the year. These stocks are typically part of the new economy,
such as technology and communications, rather than the old economy, such as
energy and transportation. During fiscal-year 1999,
- ------------------
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-12--
<PAGE>
Seligman Portfolios, Inc.
Seligman Frontier Portfolio (continued)
Seligman Frontier Portfolio pursued "middle-of-the-road" stocks in industries
such as software, semiconductors, and semiconductor capital equipment. These
companies play a vital role in the new economy, yet they are also money-making
enterprises.
During the fiscal year, the technology sector was the Portfolio's sector
and the Portfolio's weighting in this area increased as a result. The Portfolio
remains underweighted in the Internet, however, since many of these companies do
not yet have any earnings, and the fundamentals underlying these companies are
typically weak. Despite high valuations and weak fundamentals, the Internet was
the best-performing sector of the small-cap market. At the beginning of the
year, the Portfolio suffered as a result of poor stock selection in the health
care sector, but most of the resulting drag on performance was recovered by year
end.
We are optimistic for the Portfolio as we look into the year 2000. Smaller
companies, which many believed were at an increased risk for Year 2000 computer
problems, entered the millennium unscathed, and many small companies have been
delivering strong earnings reports that are meeting or beating the market's
expectations. We believe that the interest-rate environment will stabilize in
2000, which would be positive for the stock market as a whole and for
small-capitalization stocks. Finally, small-cap stocks continue to be priced
considerably lower than their large-cap counterparts, despite the fact that
smaller companies continue to have higher growth rates.
Seligman Global Growth Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Date Global Growth Opportunities Portfolio Lipper Global Funds Avg. MSCI World Index
<S> <C> <C> <C>
01-May-96 10000 10000 10000
30-Jun-96 10010 10118 10062
30-Sep-96 9810 10226 10207
31-Dec-96 9922 10740 10687
31-Mar-97 10022 10842 10730
30-Jun-97 11274 12162 12357
30-Sep-97 11694 12801 12723
31-Dec-97 11169 12199 12422
31-Mar-98 13022 13855 14214
30-Jun-98 13326 13946 14515
30-Sep-98 11422 11940 12788
31-Dec-98 13581 14047 15502
31-Mar-99 14366 14410 16068
30-Jun-99 15527 15486 16849
30-Sep-99 15965 15317 16612
31-Dec-99 20710 18896 19430
</TABLE>
The past year witnessed a significant turnaround for global economies and
stock markets. In the wake of the financial crisis emanating from Asia in 1998,
major central banks around the world lowered interest rates and provided
liquidity. In response, the world economy enjoyed a sharp recovery and stock
markets, particularly in Asia, rallied strongly.
As markets recovered, the Portfolio's relative performance was influenced
positively by three major factors. First, the Portfolio's overweighting in
technology and telecommunications was beneficial since these sectors performed
well. Increasing use of mobile communication devices, the Internet, and data
transfer boosted demand for computers, software, and connectivity. Second, the
Portfolio's concentration in Japanese emerging growth companies was beneficial
since these companies more than doubled in value during the year. Third, the
Portfolio's limited exposure to health care helped overall performance as the
sector lagged the broader market averages.
The Portfolio remained broadly invested in three major growth themes:
Quality of Life, Productivity, and Consumption. During the year, we
significantly increased exposure to the Productivity theme, which includes
information technology and telecommunication services. At the same time, we
reduced exposure to the Consumption and Quality of Life themes.
The Productivity theme provided much of the Portfolio's activity during the
fiscal year. We continued to add substantially to the Telecomms sub-theme, as
the increase in voice and data traffic over growing numbers of networks showed
no sign of abating. In fact, the provision of ever greater bandwidth promises to
accelerate. Telecomms now exceeds both Technology and Consumer Staples as the
biggest sub-theme, with about 16% of the Portfolio's assets invested in this
area.
Among the Portfolio's thematic investments, the emphasis on technology and
telecommunications sub-themes is the most important. We believe that despite
near-term volatility, secular forces remain supportive of these sectors. The
transformation to a wired world has only just begun, with the most momentous
changes yet to come. Overall, in an environment of low inflation and intense
competition, real growth will continue to be scarce. The experience of recent
years has shown that investors around the world are eager to invest in
businesses that promise high profit growth, and we believe this situation will
continue.
Looking ahead, news about global economic activity is likely to remain
positive. As a result, interest rates are expected to move higher, first in the
US and Europe, and eventually in Asia. However, much of this increase has
already been anticipated by market participants, and as long as cyclical
inflationary pressures remain muted, investors are unlikely to be overly
concerned about higher interest rates. We expect that, as tighter monetary
policy preempts higher inflation, long bond yields in most markets will begin to
decline. Such an outcome would be supportive of global growth stocks.
- --------------------
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-13--
<PAGE>
Seligman Portfolios, Inc.
Annual Performance Overview
Seligman Global Smaller Companies Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Global Smaller Lipper Global Small Salomon Bros World
Date Companies Portfolio Cap Funds Avg. EM Index
<S> <C> <C> <C>
11-Oct-94 10000 10000 10000
31-Dec-94 10353 9649 9724
31-Mar-95 10594 9585 9997
30-Jun-95 10886 10373 10404
30-Sep-95 11860 11311 11110
31-Dec-95 12152 11341 11352
31-Mar-96 13246 12150 11969
30-Jun-96 14589 12911 12460
30-Sep-96 14464 12800 12459
31-Dec-96 14421 13084 12774
31-Mar-97 14196 12870 12396
30-Jun-97 15810 14215 13793
30-Sep-97 16023 14938 14658
31-Dec-97 14915 13710 13844
31-Mar-98 17260 15532 15649
30-Jun-98 17329 15182 15285
30-Sep-98 14433 12027 12651
31-Dec-98 15897 13759 14665
31-Mar-99 14531 13654 14306
30-Jun-99 16235 15368 15857
30-Sep-99 16971 15495 15560
31-Dec-99 20402 19981 17947
</TABLE>
During fiscal year 1999, performance for global smaller companies was
generally volatile, and returns among sectors and regions showed great
disparities. Improving world economic growth should have provided a positive
background for smaller companies. However, with the exception of a few specific
sectors, smaller companies overall have lacked pricing power.
In the US, small-capitalization stocks began to deliver returns that were
competitive with large-company stocks. However, last year's markets were
extraordinarily narrow, regardless of market capitalization. US growth stocks,
and particularly technology stocks, outpaced the rest of the market by a wide
margin. In the fiscal year, the technology sector was the Portfolio's best-
performing US sector and the Portfolio's weighting in this area increased as a
result. The Portfolio remains underweighted in the Internet, however, since many
of these companies do not yet have any earnings, and the fundamentals underlying
these companies are typically weak. Despite high valuations and weak
fundamentals, the Internet was the best-performing sector of the US small-cap
market.
In the UK, smaller companies enjoyed strong performance relative to larger
companies. During the first six months of the year, in particular, smaller
companies performed very well. More recently, interest-rate increases slowed
this outperformance, but smaller companies ended the year strongly. The
Portfolio remained consistently overweighted in the United Kingdom. The
allocation to the UK was 17.8% in January, rose to a peak of 19.9% in October,
and fell to 16.7% by year end. In the UK, we emphasized service companies and
technology, which benefited performance since these companies have performed
very well.
Smaller companies in Continental Europe remained generally out of favor for
most of the period. Merger and acquisition activity was concentrated among large
companies, and the portfolio restructuring that followed European Monetary Union
also favored larger companies. These more than offset the positive earnings
growth prospects for smaller companies. The Portfolio was generally neutral to
slightly overweighted in Continental Europe during the period. However,
valuations are now quite low and we are looking for an opportunity to increase
this weighting.
In Japan, smaller companies participated in the rising stock market, but
generally lagged behind larger-company stocks. The strengthening of the yen
during the fiscal year boosted returns for US investors. Within smaller
companies, those companies and sectors with visible growth prospects delivered
exceptional performance. We believe the Portfolio has very good exposure to
fast-growing companies, some of which delivered strong performance during the
year. The Portfolio's allocation to Japan more than doubled over the year.
However, valuations for high-growth companies are now quite high and we do not
anticipate further increasing the Portfolio's Japanese weighting.
In the Pacific, smaller companies generally performed in line with those of
larger companies and, as a result, rose strongly during the year. The Portfolio
moved to a significant overweight position during the course of the year,
doubling its allocation from 2.9% in January to 5.9% at the end of the year. The
Portfolio focused on companies in the technology and service-related areas,
which have generally performed very well. We anticipate remaining overweighted
in the Pacific, and may in fact further increase exposure to this region.
____________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-14--
<PAGE>
Seligman Portfolios, Inc.
Seligman Global Technology Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Global Technology Lipper Global Lipper Sci & Tech MSCI World
Date Portfolio Funds Avg. Funds Avg. Index
<S> <C> <C> <C> <C>
01-May-96 10000 10000 10000 10000
30-Jun-96 9860 10118 10062 9710
30-Sep-96 9970 10226 10207 10385
31-Dec-96 10401 10740 10687 10839
31-Mar-97 9957 10842 10730 9799
30-Jun-97 11328 12162 12357 11599
30-Sep-97 13525 12801 12723 13743
31-Dec-97 12432 12199 12422 12139
31-Mar-98 14803 13855 14214 14286
30-Jun-98 15108 13946 14515 14847
30-Sep-98 12761 11940 12788 13216
31-Dec-98 17007 14047 15502 18665
31-Mar-99 17928 14410 16068 22001
30-Jun-99 21464 15486 16849 25061
30-Sep-99 23724 15317 16612 27028
31-Dec-99 37211 18896 19430 44356
</TABLE>
Technology stocks enjoyed an exceptionally strong year, outperforming the
broad market by a wide margin. Every region of the global stock market saw the
same pattern with investors becoming increasingly disenchanted with the low
levels of growth offered by traditional companies and increasingly enthusiastic
about the apparently open-ended growth opportunity provided by the technology
industry.
Although the fiscal year began with some apprehension about the impact of
Y2K on technology spending patterns, demand remained strong across the board.
The growth of the Internet and its increased use by both businesses and
consumers remained the most significant driver of technology spending. While the
US originally led this trend, both Europe and Asia are catching up rapidly.
Growth of the Internet has had positive implications for spending in areas such
as storage, servers, communications equipment, and particular segments of the
software and services markets. Wireless demand has continued unabated and, with
the general pick-up in global economic activity, demand has increased sharply
for components. Relatively few areas of the industry have lagged behind, but the
key difference in the performance of technology stocks this year has been their
positioning vis-a-vis the Internet.
We maintained a significant weighting in the US throughout the year while
adding to the Portfolio's position in Japan during the spring. We continued to
make major commitments to both the communications and semiconductor sectors, and
enjoyed a strong year in both areas. During the period, we reduced the
Portfolio's exposure to the personal computer and software/services markets.
As we enter the Year 2000, the technology industry's fundamental outlook
remains positive. We expect earnings growth to accelerate, which should help to
support what are admittedly fairly high valuations. The latter, together with
the extent to which stock market performance has been polarized over the last
year, create the conditions in which there is some risk of a switch back into
value and cyclicals. However, we believe that the technology industry remains
well positioned for long-term growth.
Seligman High-Yield Bond Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
High-Yield Bond Merrill Lynch High- High Current Yield
Date Portfolio Yield Master Index Funds Avg.
<S> <C> <C> <C>
01-May-95 10000 10000 10000
30-Jun-95 10030 10391 10265
30-Sep-95 10300 10694 10591
31-Dec-95 10737 11049 10907
31-Mar-96 11126 11211 11217
30-Jun-96 11341 11364 11440
30-Sep-96 11872 11808 11982
31-Dec-96 12307 12272 12419
31-Mar-97 12252 12400 12512
30-Jun-97 13022 12990 13179
30-Sep-97 13824 13497 13882
31-Dec-97 14164 13846 14076
31-Mar-98 14820 14232 14681
30-Jun-98 14987 14471 14739
30-Sep-98 13925 13953 13658
31-Dec-98 14309 14354 14050
31-Mar-99 14506 14510 14448
30-Jun-99 14335 14607 14546
30-Sep-99 13914 14424 14321
31-Dec-99 14201 14579 14682
</TABLE>
All fixed-income securities, including those held by the Portfolio, faced
the formidable headwind of rising interest rates during the past fiscal year.
This difficult operating environment was the single biggest factor affecting
Portfolio performance during this time. The high-yield market, while
withstanding interest-rate increases better than many other fixed-income
securities, experienced some ad verse market conditions unique to high-yield
bonds. Since the 1998 global financial crisis, the high-yield market has
suffered from reduced liquidity. This has widened the yield spread between
high-yield bonds and Treasuries with similar maturities. In addition, during
1999, new supply of high-yield bonds outpaced demand significantly. This
imbalance drove prices for existing high-yield issues lower.
During the past fiscal year, we began to seek more opportunities in the
high-growth areas of technology, wireless communications, and telecommunications
infrastructure companies. In particular, we are optimistic about communications
tower companies, fiber
____________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-15--
<PAGE>
Seligman Portfolios, Inc.
Annual Performance Overview
Seligman High-Yield Bond Portfolio (continued)
optic cable companies, Internet companies, and European telecom companies.
During the next three years, the growth rate for fiber cable deployment and
bandwidth demand is expected to grow by 30% per year. This increase in demand is
being driven by the growing use of the Internet. We believe the Portfolio is
currently well positioned to capitalize on the increasing demand for data,
video, and telephony services.
During the period under review, we reduced the Portfolio's exposure to
health care, since this sector continues to struggle because of changes in
Medicare reimbursement programs. We also reduced the Portfolio's exposure to
economically sensitive sectors since these areas are more at risk if interest
rates head higher.
We believe that the outlook for the high-yield market and for the Portfolio
is positive. The interest-rate environment during was extraordinarily
unfavorable for fixed-income securities, and we do not believe that this will
continue in 2000. As interest rates stabilize and global economies continue to
recover, we believe that the prices for high-yield bonds in general will begin
to move higher. We are particularly optimistic regarding the prospects for the
securities in the Portfolio. Throughout 2000, we expect to continue to seek
opportunities in the high-growth areas of wireless communications,
telecommunications infrastructure, Internet, cable, and media-related sectors.
Seligman Income Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Lehman Bros. Aggregate Lipper Income
Date Income Portfolio Bond Index Funds Average S&P 500
<S> <C> <C> <C> <C>
12/31/1989 10000 10000 10000 10000
03/31/1990 9981 9920 9764 9699
06/30/1990 10074 10283 10047 10309
09/30/1990 9072 10372 9327 8893
12/31/1990 9390 10896 9866 9689
31-Mar-91 10447 11201 10786 11097
30-Jun-91 10882 11383 10856 11072
30-Sep-91 11772 12029 11647 11664
31-Dec-91 12290 12639 12345 12642
31-Mar-92 12793 12478 12344 12322
30-Jun-92 13110 12982 12699 12556
30-Sep-92 13590 13540 13145 12951
31-Dec-92 14222 13576 13486 13603
31-Mar-93 14996 14137 14321 14197
30-Jun-93 15408 14512 14652 14267
30-Sep-93 15870 14890 15185 14635
31-Dec-93 15981 14899 15214 14974
31-Mar-94 15307 14472 14614 14407
30-Jun-94 14844 14323 14542 14467
30-Sep-94 15349 14410 14889 15175
31-Dec-94 15028 14465 14625 15172
31-Mar-95 15571 15194 15523 16649
30-Jun-95 16626 16119 16513 18240
30-Sep-95 17606 16435 17353 19690
31-Dec-95 17730 17135 18127 20875
31-Mar-96 17948 16832 18500 21996
30-Jun-96 18183 16928 18848 22983
30-Sep-96 18334 17241 19181 23694
31-Dec-96 18910 17758 20099 25670
31-Mar-97 19017 17659 20144 26358
30-Jun-97 20258 18307 21682 30960
30-Sep-97 21246 18915 22963 33279
31-Dec-97 21561 19471 23438 34234
31-Mar-98 22779 19775 24691 39010
30-Jun-98 22779 20237 24776 40297
30-Sep-98 22300 21093 23694 36288
31-Dec-98 23234 21165 25240 44017
31-Mar-99 22854 21059 25292 46209
30-Jun-99 23381 20874 26273 49467
30-Sep-99 22390 21016 25511 46375
31-Dec-99 23901 20991 26501 53276
</TABLE>
Seligman Income Portfolio had a difficult 1999 as a result of a narrow
stock market that overwhelmingly favored growth stocks over value stocks, and a
fixed-income market that was dragged lower because of steadily rising interest
rates.
During the past fiscal year, we significantly reduced the Portfolio's
exposure to fixed-income securities, while we increased the Portfolio's exposure
to the stock market. We believe that this heavier stock weighting will provide
the Portfolio with more opportunities for capital appreciation. At the same
time, by continuing to maintain a substantial exposure to investment-grade
corporate bonds and government bonds, we hope to cushion the Portfolio from the
historically higher volatility of the stock market.
We are cautiously optimistic regarding the outlook for the stock market and
the fixed-income market for the year 2000. We believe that the stock market will
broaden considerably from what we experienced in 1999, and that value stocks
will be rewarded. In addition, we believe that yields will stabilize, allowing
fixed-income securities to post positive total returns.
________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-16--
<PAGE>
Seligman Portfolios, Inc.
Seligman International Growth Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
International Lipper International
Date Portfolio Funds Avg. EAFE Index
<S> <C> <C> <C>
03-May-93 10000 10000 10000
30-Jun-93 10010 10005 10057
30-Sep-93 10480 10875 10731
31-Dec-93 11440 11907 10831
31-Mar-94 10987 11822 11216
30-Jun-94 11399 11950 11797
30-Sep-94 11751 12323 11816
31-Dec-94 11591 11838 11704
31-Mar-95 11428 11659 11931
30-Jun-95 11765 12146 12028
30-Sep-95 12603 12746 12539
31-Dec-95 12905 13009 13057
31-Mar-96 13228 13593 13443
30-Jun-96 13603 14087 13666
30-Sep-96 13520 14026 13659
31-Dec-96 13819 14598 13887
31-Mar-97 13925 14799 13680
30-Jun-97 15802 16452 15466
30-Sep-97 15716 16684 15367
31-Dec-97 14973 15410 14173
31-Mar-98 17295 17675 16269
30-Jun-98 17682 17801 16453
30-Sep-98 14719 14939 14125
31-Dec-98 17340 17399 17056
31-Mar-99 17374 17685 17305
30-Jun-99 18118 18675 17756
30-Sep-99 18705 19399 18548
31-Dec-99 21960 24302 21711
</TABLE>
The past fiscal year was characterized by significant divergence in
regional stock market performance. The UK stock market generally tracked the ups
and downs of the US market. However, there was significant movement within the
stock market as a whole. As the UK economic recovery seemed well underway, more
domestic and economically-sensitive stocks performed well. However, there was an
abrupt change in July when the Bank of England raised interest rates, and these
stocks sold off sharply. Throughout the period, stocks in technology and
telecommunications performed well. Our weighting in the UK remained relatively
stable over the course of the year. We were overweighted in UK economically
sensitive stocks for most of the year, which benefited the Portfolio. However,
following the interest rate increases, we have moved to a more neutral position
in these stocks.
In local currency terms, Continental European stock markets performed well.
However, because of the weakness of the euro, US dollar returns have been more
subdued. Economically-sensitive stocks generally performed well while defensive
stocks underperformed. In addition, telecommunications and technology performed
well throughout the year and, unlike in the UK, this trend has continued. A high
level of merger and acquisition activity also benefited the UK markets, and this
is likely to continue. The Portfolio remained overweighted in Continental Europe
throughout the year, which has placed a drag on performance. However, our move
out of defensive stocks early in the year was beneficial. Now that the economic
recovery has broadened throughout Europe, we will remain overweighted in
Continental Europe since we anticipate strong corporate profit growth in year
2000 with ongoing restructuring activity.
The Japanese stock market was the best performer last year, boosted by a
strong rise in the yen versus the dollar. The big turnaround came towards the
end of the first quarter when the first signs of economic recovery emerged. In
particular, the stock market was boosted by major inflows of overseas money. The
strong yen, however, damaged 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 Portfolio was initially underweighted in Japan, but
increased this weighting significantly during the year, particularly in early
March.
In the Pacific, the strongest recoveries have been Korea and Singapore. In
contrast, continued political turmoil in Indonesia placed a drag on stock market
performance. The Portfolio remained underweighted in the region, which was a
negative given the strong recovery. Overall, improving economic growth on a
global basis should be positive for the pacific region and we will seek
opportunities to increase the Portfolio's exposure during the coming fiscal
year.
Emerging markets benefited from improving global growth and performed well
during the year. Foreign investors once again sought opportunities in these
markets, as the fears of last year subsided. The Portfolio reduced its emerging
market exposure during the period, but had significant holdings in Greece, which
performed exceptionally well. In Latin America, the Portfolio was concentrated
in Mexico and Brazil.
The economic outlook for emerging markets is as good as it has been for
some time, with steady growth and low inflation likely to continue. However,
central banks are now more concerned regarding inflation, and interest rates may
rise slightly from current levels. For the first time in some time, earnings
growth outside the US may be higher and international stock markets are now
beginning to perform much better following their long period of underperformance
against US markets.
_____________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-17--
<PAGE>
Seligman Portfolios, Inc.
Annual Performance Overview
Seligman Large-Cap Growth Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Large-Cap Growth Lipper Growth Russell 1000
Portfolio Funds Average Growth Index
<S> <C> <C> <C>
04/30/1999 10000 10000 10000
05/31/1999 9730 9812 9693
06/30/1999 10420 10398 10372
07/31/1999 10120 10131 10042
08/31/1999 10270 10039 10205
09/30/1999 10080 9877 9991
10/31/1999 10470 10458 10745
11/30/1999 10990 10921 11325
12/31/1999 12160 11944 12502
</TABLE>
The Portfolio benefited during the first eight months of its operations by
a very favorable environment for growth stocks. Technology stocks, in
particular, enjoyed exceptionally positive performance. Despite the fact that
the Portfolio was underweighted in this industry, the technology stocks in the
Portfolio delivered very strong results and the sector made a positive impact on
overall performance. The Portfolio was underweighted in health care during this
time, which benefited overall performance since this sector was a poor
performer.
Since the Portfolio's inception, we have pursued large-capitalization
companies, with particular emphasis on those with longer-term track records. In
general, we are attracted to stocks with strong price-to-earnings growth rates
looking two years ahead.
We believe that the Portfolio is well positioned as we head into the new
year. We anticipate increasing the Portfolio's technology weighting during the
coming fiscal year, and believe that this industry will continue to be a
high-growth area and a strong market performer. We plan to seek additional
opportunities in companies that are positioned to benefit from the recoveries
abroad, particularly in Japan.
Seligman Large-Cap Value Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Large Cap Russell 1000 Russell 1000
Date Value Portfolio Value Index Index S&P 500
<S> <C> <C> <C> <C>
01-May-98 10000 10000 10000 10000
31-May-98 9990 9852 9784 9828
30-Jun-98 9920 9978 10146 10227
31-Jul-98 9550 9802 10024 10118
31-Aug-98 7980 8344 8526 8655
30-Sep-98 8050 8823 9100 9209
31-Oct-98 9000 9507 9819 9958
30-Nov-98 9940 9950 10427 10562
31-Dec-98 9974 10288 11091 11170
31-Jan-99 9933 10370 11487 11637
28-Feb-99 9716 10224 11123 11275
31-Mar-99 10046 10436 11549 11726
30-Apr-99 10862 11410 12032 12180
31-May-99 10862 11285 11772 11892
30-Jun-99 11089 11612 12372 12552
31-Jul-99 10635 11272 11995 12161
31-Aug-99 10284 10854 11882 12100
30-Sep-99 9427 10475 11555 11768
31-Oct-99 9933 11078 12332 12513
30-Nov-99 9778 10992 12649 12767
31-Dec-99 9698 11045 13412 13519
</TABLE>
During the past fiscal year, the outsized performance of a small number of
stocks within the S&P 500 carried the performance of the entire Index for the
year. The stocks that did well were primarily large-capitalization growth and
technology stocks. Seligman Large-Cap Value Portfolio had, and continues to
have, very low exposure to the technology industry because we believe that the
vast majority of these stocks do not represent good value. Stock prices for
these companies continued to rise over the course of the year, despite often
poor underlying fundamentals, including a consistent lack of earnings for many
of these companies, and a continued rise in interest rates.
Last year's market was, to a great extent, driven by momentum; a small
number of stocks were being bought simply because their prices appeared to be on
an upward trend. The rest of the market, and with it many attractively valued
stocks, lagged behind. Despite the seemingly robust performance of the S&P 500,
nearly half of the stocks in the Index posted negative returns for the year,
with value-style stocks trailing growth-style stocks to an unprecedented degree.
In the period under review, some of the Portfolio's individual stock
holdings delivered poor results. These stocks, which were within the aerospace,
office equipment, food, and packaging sectors, declined because of lower
earnings expectations. In all these cases, we reduced, or completely eliminated,
the Portfolio's exposure to these companies over the course of the fiscal year.
__________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
See footnote on page P-19.
--P-18--
<PAGE>
Seligman Portfolios, Inc.
Seligman Large-Cap Value Portfolio (continued)
Despite a difficult 1999, we continue to favor the financial sector since
we think that many of these companies remain good values, and we forecast a
better operating environment for this industry in the year 2000. We believe that
interest rates, whose upward trend was so detrimental to these stocks in 1999,
will stabilize.
During fiscal year 1999, we eliminated or reduced some positions that had
done well either because we did not believe they continued to represent good
value or because they had increased to a degree that they represented too large
a percentage of the portfolio. We continually monitor the Portfolio to ensure
that no single holding is excessively overweighted and that the Portfolio
remains well diversified.
We believe that value stocks will be recognized by the market in 2000, and
believe that the overall economic environment bodes well for value stocks. We
forecast a slowing US economy, but a strengthening international economy. Value
companies tend to be economically sensitive and thus perform well within a
growing global economy. In addition, a more sedate US economy may allow interest
rates to decline, which would further benefit value stocks -- particularly
financial stocks -- since they tend to do well when interest rates fall.
Seligman Small-Cap Value Portfolio
The chart and total returns do not reflect any fees or charges that investors
will incur in purchasing or selling units of the Variable Accounts.
<TABLE>
<CAPTION>
Small Cap Russell 2000 Lipper S-Cap
Date Value Portfolio Value Index Fds Avg
<S> <C> <C> <C>
01-May-98 10000 10000 10000
31-May-98 9500 9646 9447
30-Jun-98 9150 9592 9513
31-Jul-98 8460 8841 8840
31-Aug-98 6350 7456 7088
30-Sep-98 6420 7878 7505
31-Oct-98 6850 8112 7822
30-Nov-98 7290 8332 8330
31-Dec-98 8300 8593 8937
31-Jan-99 8652 8398 8957
28-Feb-99 8345 7824 8235
31-Mar-99 8856 7760 8380
30-Apr-99 10900 8469 8926
31-May-99 11002 8729 9105
30-Jun-99 11910 9045 9717
31-Jul-99 11865 8830 9648
31-Aug-99 10934 8508 9389
30-Sep-99 10548 8338 9422
31-Oct-99 9946 8171 9611
30-Nov-99 10684 8214 10374
31-Dec-99 11226 8466 11622
</TABLE>
Seligman Small-Cap Value Portfolio was negatively impacted by last year's
market environment, which overwhelmingly favored growth stocks over value
stocks. Last year's market largely ignored fundamentals and was one of the most
narrow on record. A small number of stocks, particularly in the technology
sector, continued to experience price gains, while much of the market lagged
behind. The Portfolio has very low exposure to technology because the vast
majority of these stocks do not fit our value criteria. Stock prices for these
companies continued to rise over the course of the year, despite often poor
underlying fundamentals, including a consistent lack of earnings for many of
these companies, and a continued rise in interest rates.
During 1999, many companies within the Portfolio posted strong operating
results, but this was not reflected in higher stock prices. One of the
Portfolio's long-term holdings in specialty retail delivered poor stock-price
performance during the period despite posting better-than-expected operating
performance. This is a specific example of the market's lack of regard for
fundamentals during this time. We continued to hold the stock because we believe
that if a company continues to deliver strong results, the market will
ultimately recognize the stock.
The energy sector as a whole outperformed during the period. The
Portfolio's overweighting in the sector, as well as the strong performances of
individual energy stocks in the Portfolio, helped both absolute and relative
performance. Financial stocks came under considerable pressure as a result of
rising interest rates. These companies are among the most sensitive to interest-
rate changes; they tend to perform poorly when interest rates go up, and perform
well when interest rates decline. While the Portfolio did have significant
exposure to financial stocks, the Portfolio was, fortunately, considerably
underweighted in this sector versus its benchmark, the Russell 2000 Value Index.
We are optimistic regarding the prospects for small-company value stocks
during the coming fiscal year. We are convinced that it is only a matter of time
before investors begin to pursue these relative bargains in the midst of a
broader market that in some areas has become remarkably expensive. The Russell
2000 Value Index now has a dividend yield higher than that of the S&P 500. This
is unprecedented. Small companies typically have higher earnings growth rates,
but lower dividend yields. Currently, small companies are offering higher
current yields in addition to higher growth rates. We believe that these strong
underlying fundamentals, in addition to attractive valuations, will ultimately
be recognized by the market.
__________________
The investment return and principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results. +Performance data
quoted represent past performance and assume that all dividends and
distributions are invested in additional shares.
--P-19--
<PAGE>
Seligman Portfolios, Inc.
Portfolios of Investments
SELIGMAN BOND PORTFOLIO
<TABLE>
<CAPTION>
Principal
Amount Value
--------- -----------
<S> <C> <C>
CORPORATE BONDS -- 52.6%
Allstate
7.20%, 12/1/2009.................................... $ 75,000 $ 72,959
American Home Products
7.90%, 2/15/2005.................................... 75,000 77,043
Associates Corporation
of North America
5 3/44%, 11/1/2003.................................. 250,000 238,231
AT&T (Canada)
7.65%, 9/15/2006.................................... 50,000 49,846
Bank of New York
7.30%, 12/1/2009.................................... 75,000 73,607
Boston Scientific
6 5/8%, 3/15/2005................................... 100,000 92,251
Cardinal Health
6 1/4%, 7/15/2008................................... 100,000 91,071
CSC Holdings
7 1/4%, 7/15/2008................................... 50,000 47,625
Dana
6 1/2%, 3/1/2009.................................... 100,000 91,129
Deere
6.55%, 7/15/2004.................................... 40,000 38,905
Dell Computer
6.55%, 4/15/2008.................................... 200,000 187,688
Delta Air Lines
7.70%, 12/15/2005................................... 75,000 73,847
Dime Bancorp
7%, 7/25/2001....................................... 50,000 49,322
First Data
5.80%, 12/15/2008................................... 100,000 88,195
First USA Bank
6 1/8%, 6/25/2001................................... 100,000 99,076
Ford Motor Credit
5.80%, 1/12/2009.................................... 100,000 88,900
Guidant, 6.15%, 2/15/2006.............................. 100,000 92,364
Heller Financial
6 1/2%, 7/22/2002................................... 75,000 73,652
Household Finance
6%, 5/1/2004........................................ 100,000 95,042
Lyondell Chemical
9 5/8%, 5/1/2007.................................... 100,000 102,750
Nordstrom
5 5/8%, 1/15/2009................................... 40,000 34,767
Philip Morris
7 1/8%, 8/15/2002................................... 200,000 196,877
CORPORATE BONDS (continued)
Qwest Communications
0% (9.47%++), 10/15/2007............................ $ 50,000 $ 40,750
Staples
7 1/8%, 8/15/2007................................... 75,000 71,541
Textron
6 3/8%, 7/15/2004................................... 60,000 57,931
Time Warner
9 1/8%, 1/15/2013................................... 200,000 219,841
US West Communications
7.20%, 11/1/2004.................................... 75,000 74,633
Wal-Mart Stores
6.55%, 8/10/2004.................................... 85,000 83,675
-----------
Total Corporate Bonds
(Cost $2,712,814).................................. 2,603,518
-----------
US GOVERNMENT AND
GOVERNMENT AGENCY
SECURITIES -- 21.7%
Federal Home Loan Bank
5 1/8%, 4/17/2001.................................. 100,000 98,420
US Treasury Bonds
8 3/4%, 5/15/2020.................................. 300,000 363,188
7 1/4%, 8/15/2022.................................. 200,000 210,938
US Treasury Notes
6 1/4%, 6/30/2002................................... 200,000 199,938
6 5/8%, 5/15/2007................................... 200,000 200,875
-----------
Total US Government and
Government Agency Securities
(Cost $1,101,339)................................... 1,073,359
-----------
MORTGAGE-BACKED
SECURITIES+ -- 17.1%
FHLMCGOLD 6%, 11/1/2010................................ 80,329 77,502
FNMA:
6 1/2%, 4/29/2009................................... 160,000 150,166
6%, 12/1/2028....................................... 190,343 174,323
Government National Mortgage
Association:
6 1/2%, 12/15/2028.................................. 285,753 268,518
6%, 12/20/2028...................................... 192,124 174,455
-----------
</TABLE>
____________
+ Investments in mortgage-backed and asset-backed securities are subject to
principal paydowns. As a result of prepayments from refinancing or
satisfaction of the underlying instruments, the average life may be less than
the original maturity. This in turn may impact the ultimate yield realized
from these investments.
++ Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-20--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
SELIGMAN BOND PORTFOLIO (continued)
<TABLE>
<CAPTION>
December 31, 1999
----------------------
Principal
Amount Value
--------- -----------
<S> <C> <C>
Total Mortgage-Backed
Securities
(Cost $895,908)....................................... $ 844,964
-----------
ASSET-BACKED
SECURITIES+ -- 3.4%
Peco Energy Transition Trust
6.05%, 3/1/2009....................................... $ 100,000 93,460
PP&L Transition
6.83%, 3/25/2007...................................... 75,000 74,598
-----------
Total Asset-Backed Securities
(Cost $174,857)....................................... 168,058
-----------
<CAPTION>
Principal
Amount Value
--------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENTS -- 10.1% (Cost $500,000)
State Street Bank & Trust
3-1/2%, dated 12/31/99,
maturing 1/3/2000, collateralized by:
$485,000 US Treasury Notes 7-1/2%, 2/15/2005,
with a fair market value of $520,163 ................... $ 500,000 $ 500,000
-----------
Total Investments -- 104.9%
(Cost $5,384,888) ...................................... 5,189,899
Other Assets
Less Liabilities -- (4.9)%.............................. (242,751)
-----------
Net Assets -- 100.00%.................................... $ 4,947,148
===========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
COMMON STOCKS -- 95.5%
BASIC MATERIALS -- 2.7%
Nucor.................................................... 8,200 $ 449,463
Praxair.................................................. 5,700 286,781
-----------
736,244
-----------
CAPITAL GOODS -- 11.1%
American Power Conversion*............................... 16,400 432,038
Avery Dennison........................................... 7,300 531,987
Cintas................................................... 8,900 472,534
Corning.................................................. 4,200 541,538
Molex.................................................... 5,700 322,941
Symbol Technologies...................................... 12,100 769,106
-----------
3,070,144
-----------
CONSUMER CYCLICALS -- 17.7%
BJ's Wholesale Club*..................................... 6,600 240,900
Circuit City Stores--Circuit
City Group................ ............................. 13,000 585,812
Danaher.................................................. 3,300 159,225
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
CONSUMER CYCLICALS
(continued)
DoubleClick*............................................. 1,500 $ 379,922
Fastenal................................................. 7,000 314,781
Fluor.................................................... 7,200 330,300
Gentex*.................................................. 16,400 457,150
Harley-Davidson.......................................... 7,000 448,438
Interpublic Group of Companies........................... 4,200 242,287
Limited.................................................. 13,400 580,388
Reader's Digest Association.............................. 10,600 310,050
Royal Caribbean Cruises.................................. 8,600 424,088
Williams-Sonoma*......................................... 4,500 207,000
Young & Rubicam.......................................... 2,800 198,100
-----------
4,878,441
-----------
CONSUMER STAPLES -- 2.1%
Clorox................................................... 5,300 266,987
Newell Rubbermaid........................................ 10,400 301,600
-----------
568,587
-----------
</TABLE>
___________
+ Investments in mortgage-backed and asset-backed securities are subject to
principal paydowns. As a result of prepayments from refinancing or
satisfaction of the underlying instruments, the average life may be less than
the original maturity. This in turn may impact the ultimate yield realized
from these investments.
* Non-income producing security.
See Notes to Financial Statements.
--P.21--
<PAGE>
Seligman Portfolios, Inc.
Portfolios of Investments (continued)
SELIGMAN CAPITAL PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
----------- ------------
<S> <C> <C>
ELECTRONIC
TECHNOLOGY -- 16.4%
Applied Micro Circuits*.......................... 1,100 $ 140,113
Broadcom (Class A)*.............................. 1,900 517,453
Ciena*........................................... 9,000 517,781
Finisar*......................................... 3,400 304,300
Foundry Networks*................................ 1,100 331,787
Gateway*......................................... 3,500 252,219
JDS Uniphase*.................................... 4,400 709,775
Maxim Integrated Products*....................... 2,900 136,753
Network Appliances*.............................. 1,400 116,244
PMC-Sierra* (Canada)............................. 1,300 208,366
VERITAS Software*................................ 3,000 429,281
Vitesse Semiconductor*........................... 8,400 440,213
Xilinx*.......................................... 9,400 427,406
------------
4,531,691
------------
ENERGY -- 2.4%
EOG Resources.................................... 12,000 210,750
Weatherford International*....................... 11,400 455,287
------------
666,037
------------
FINANCIAL SERVICES -- 6.6%
ACE.............................................. 15,300 255,319
AFLAC............................................ 8,600 405,812
Allied Capital................................... 13,400 244,969
Capital One Financial............................ 4,600 221,662
Concord*......................................... 16,500 424,359
SouthTrust....................................... 6,950 262,580
------------
1,814,701
------------
HEALTH CARE -- 10.5%
ALZA*............................................ 8,200 283,925
Biogen*.......................................... 4,800 405,450
Biomet........................................... 3,900 155,878
Elan*............................................ 15,300 451,350
Forest Laboratories*............................. 6,600 405,488
Guidant*......................................... 5,400 253,800
IMS Health....................................... 3,900 106,031
PE Biosystems Group.............................. 2,900 348,906
Quintiles Transnational*......................... 11,000 205,219
Watson Pharmaceutical*........................... 7,800 279,337
------------
2,895,384
------------
TECHNOLOGY
Services -- 22.6%
Ariba*........................................... 1,700 301,219
BMC Software*.................................... 5,500 439,484
<CAPTION>
Shares
Principal
Amount Value
----------- ------------
<S> <C> <C>
TECHNOLOGY
SERVICES (continued)
Cadence Design Systems*.......................... 31,200 shs. $ 748,800
Commerce One*.................................... 1,000 196,781
Compuware*....................................... 13,500 502,453
CSG Systems International*....................... 5,800 229,463
Fiserv*.......................................... 4,500 172,125
I2 Technologies*................................. 1,300 253,256
ISS Group*....................................... 12,800 909,600
NBC Internet (Class A)*.......................... 5,100 393,975
Rational Software*............................... 7,600 374,063
Siebel Systems*.................................. 7,300 614,113
Software.com*.................................... 3,200 305,800
VeriSign*........................................ 1,600 305,700
Vignette*........................................ 2,900 472,609
-----------
6,219,441
-----------
UTILITIES -- 3.4%
AES.............................................. 12,700 949,325
-----------
Total Common Stocks
(Cost $17,608,795).............................. 26,329,995
-----------
REPURCHASE
AGREEMENTS -- 7.6%
(Cost $2,100,000)
State Street Bank & Trust,
3-1/2%, dated 12/31/99,
maturing 1/3/2000,
collateralized by:
$2,020,000 US Treasury
Notes 7-1/2%, 2/15/2005,
with a fair market value of
$2,166,450 ..................................... $ 2,100,000 2,100,000
------------
Total Investments -- 103.1%
(Cost $19,708,795).............................. 28,429,995
Other Assets Less
Liabilities-- (3.1)%............................ (844,202)
------------
Net Assets-- 100.0%.............................. $ 27,585,793
============
</TABLE>
____________
* Non-income producing security.
See Notes to Financial Statements.
--P-22--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO
<TABLE>
<CAPTION>
Annualized
Yield on Principal
Purchase Date Amount Value
-------------- ---------- ----------
<S> <C> <C> <C>
US GOVERNMENT AND GOVERNMENT AGENCY
SECURITIES -- 42.4%
US GOVERNMENT SECURITIES -- 25.5%
US Treasury Bills,
1/13/2000............................ 5.37% $1,000,000 $ 998,234
1/20/2000............................ 5.30 1,500,000 1,497,385
1/20/2000............................ 5.03 1,000,000 997,382
1/27/2000............................ 4.92 1,000,000 996,497
----------
Total US Government Securities
(Cost $4,489,498).................... 4,489,498
----------
US GOVERNMENT AGENCY
SECURITIES -- 16.9%
Farm Credit Bank
5.52%, 1/20/2000..................... 5.60 700,000 697,961
Federal Home Loan
Bank 5-1/2%,
2/1/2000............................. 5.58 800,000 796,211
Federal Home Loan
Mortgage 5.61%,
2/28/2000............................ 5.69 700,000 693,673
Federal National Mortgage
Association, 5.47%,
1/24/2000............................ 5.55 800,000 797,204
----------
Total US Government
Agency Securities
(Cost $2,985,049).................... 2,985,049
----------
Total US Government and Government
Agency Securities
(Cost $7,474,547).................... 7,474,547
----------
COMMERCIAL PAPER -- 30.6%
American Express
Credit, 1/10/2000.................... 5.74 800,000 798,868
American General
Finance, 1/19/2000................... 5.63 800,000 797,780
<CAPTION>
Annualized
Yield on Principal
Purchase Date Amount Value
-------------- ---------- ----------
<S> <C> <C> <C>
COMMERCIAL PAPER (continued)
Associates Corp. of North America,
2/9/2000............................. 5.98% $ 700,000 $ 695,526
Ford Motor Credit,
1/24/2000............................ 5.84 900,000 896,688
General Electric Capital,
1/26/2000............................ 6.25 700,000 697,005
John Deere Capital,
1/12/2000............................ 5.83 800,000 798,594
Norwest Financial,
2/14/2000............................ 6.29 700,000 694,696
----------
Total Commercial Paper
(Cost $5,379,157) ................... 5,379,157
----------
REPURCHASE AGREEMENTS -- 21.6%
(Cost $3,800,000) State
Street Bank & Trust,
3-1/2%, dated 12/31/99,
maturing 1/3/2000
collateralized by:
$3,650,000 US Treasury
Notes 7-1/2%, 2/15/2005,
with fair market value of
$3,914,625........................... 3.55 3,800,000 3,800,000
-----------
Total Investments -- 94.6%
(Cost $16,653,704)................... 16,653,704
Other Assets Less
Liabilities-- 5.4%................... 957,677
-----------
Net Assets-- 100.0%................... $17,611,381
===========
</TABLE>
_____________________
See Notes to Financial Statements.
--P-23--
<PAGE>
Seligman Portfolios, Inc.
- -----------------------------------------------------------
Portfolios of Investments (continued)
- -----------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
COMMON STOCKS -- 97.6%
AEROSPACE -- 0.5%
General Dynamics................................... 4,700 $ 247,925
----------
AUTOMOTIVE
AND RELATED -- 2.4%
DaimlerChrysler.................................... 7,099 555,497
Ford Motor......................................... 11,300 603,844
----------
1,159,341
----------
CHEMICALS -- 1.1%
duPont (E.I.) de Nemours........................... 7,800 513,825
----------
COMMUNICATIONS -- 7.9%
AT&T............................................... 21,600 1,096,200
GTE................................................ 11,100 783,244
MCI WorldCom*...................................... 14,700 779,559
SBC Communications................................. 21,928 1,068,990
----------
3,727,993
----------
COMMUNICATIONS
EQUIPMENT -- 2.6%
Lucent Technologies................................ 9,500 710,719
Nortel Networks.................................... 5,100 515,100
----------
1,225,819
----------
COMPUTER AND
BUSINESS SERVICES -- 19.7%
America Online*.................................... 5,800 437,538
Applied Materials*................................. 8,500 1,076,578
Cisco Systems*..................................... 10,900 1,167,322
Dell Computer*..................................... 10,200 519,881
Electronic Data Systems............................ 15,800 1,057,612
Hewlett-Packard.................................... 4,300 489,931
Intel.............................................. 15,300 1,258,903
International Business Machines.................... 8,600 928,800
Microsoft*......................................... 18,800 2,194,313
Xerox.............................................. 8,300 188,306
----------
9,319,184
----------
CONSUMER GOODS AND
SERVICES -- 12.0%
Anheuser-Busch..................................... 7,300 517,387
Bestfoods.......................................... 12,100 636,006
Clorox............................................. 13,600 685,100
Coca-Cola.......................................... 7,800 454,350
ConAgra............................................ 19,700 444,481
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
CONSUMER GOODS AND
SERVICES (continued)
Gillette........................................... 13,300 $ 547,794
PepsiCo............................................ 18,900 666,225
Philip Morris...................................... 17,400 403,463
Procter & Gamble................................... 7,200 788,850
Sara Lee........................................... 23,400 516,263
----------
5,659,919
----------
DRUGS AND
HEALTH CARE -- 9.2%
Abbott Laboratories................................ 13,100 475,69
American Home Products............................. 15,600 615,225
Baxter International............................... 8,000 502,500
Bristol-Myers Squibb............................... 8,200 526,338
Johnson & Johnson.................................. 8,400 782,250
Merck.............................................. 10,600 710,862
Pfizer............................................. 10,400 337,350
Schering-Plough.................................... 9,900 417,656
----------
4,367,875
----------
ELECTRIC AND GAS
UTILITIES -- 2.7%
Unicom............................................. 13,800 462,300
Williams Companies (The)........................... 26,900 822,131
----------
1,284,431
----------
ELECTRIC EQUIPMENT -- 4.8%
General Electric................................... 12,100 1,872,475
Honeywell International............................ 7,300 421,119
----------
2,293,594
----------
ELECTRONICS -- 2.0%
Agilent Technologies*.............................. 7,000 541,187
Raytheon (Class B)*................................ 15,100 401,094
----------
942,281
----------
ENERGY -- 7.1%
BP Amoco (ADRs)
(United Kingdom).................................. 12,500 741,406
Exxon Mobil........................................ 15,200 1,224,550
Royal Dutch Petroleum
(Netherlands)..................................... 12,700 767,556
Schlumberger....................................... 9,800 551,250
Transocean Sedco Forex............................. 1,901 64,047
----------
3,348,809
----------
</TABLE>
_______________
* Non-income producing security.
See Notes to Financial Statements.
--P-24--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
FINANCE AND
INSURANCE -- 15.2%
American General................................... 12,000 $ 910,500
American International Group ...................... 7,000 756,875
Bank of America.................................... 18,339 920,389
Bank of New York................................... 25,900 1,036,000
Chubb.............................................. 7,400 416,713
Citigroup.......................................... 17,500 972,344
Fannie Mae......................................... 8,600 536,962
Mellon Bank........................................ 18,000 613,125
Merrill Lynch...................................... 6,700 559,450
Morgan (J.P.)...................................... 3,700 468,512
-----------
7,190,870
-----------
MACHINERY AND
INDUSTRIAL EQUIPMENT -- 3.1%
United Technologies................................ 22,400 1,456,000
-----------
OFFICE EQUIPMENT -- 0.9%
Pitney Bowes....................................... 9,000 434,813
-----------
PAPER AND FOREST
PRODUCTS -- 1.2%
Mead.............................................. 12,900 560,344
-----------
PUBLISHING -- 0.8%
Gannett............................................ 4,700 $ 383,344
-----------
RETAIL TRADE -- 4.2%
May Department Stores.............................. 14,350 462,786
Wal-Mart Stores.................................... 22,000 1,520,750
-----------
1,983,536
-----------
TRANSPORTATION -- 0.2%
United Parcel Service
(Class B)....................................... 1,100 75,900
-----------
Total Common Stocks
(Cost $34,872,757) ............................... 46,175,803
REPURCHASE
AGREEMENTS -- 1.1%
(Cost $500,000) .................................. 500,000
-----------
Total Investments -- 98.7%
(Cost $35,372,757) ............................... 46,675,803
Other Assets
Less Liabilities-- 1.3% .......................... 626,918
-----------
Net Assets-- 100.0%................................ $47,302,721
===========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
COMMON STOCKS -- 95.0%
COMMUNICATIONS
INFRASTRUCTURE -- 3.1%
Aspect Communications*............................. 30,400 $1,189,400
Cisco Systems*..................................... 15,400 1,649,244
Gilat Satellite Networks*
(Israel)........................................ 13,200 1,565,850
Harris............................................. 20,900 557,769
Oak Industries*.................................... 16,300 1,729,838
----------
6,692,101
----------
COMMUNICATIONS
SERVICES -- 3.2%
AT&T--Liberty Media Group
(Class A)....................................... 45,900 2,604,825
CenturyTel......................................... 20,600 975,925
Global Crossing (Bermuda)*......................... 10,100 504,684
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
COMMUNICATIONS
SERVICES (continued)
ICG Communications*................................ 30,400 $ 569,050
Infonet Services*.................................. 14,000 367,500
Intermedia Communications*......................... 10,200 395,250
MCI WorldCom*...................................... 15,450 819,333
Pacific Gateway Exchange*.......................... 13,100 223,109
Qwest Communications International*................ 10,300 442,578
----------
6,902,254
----------
COMPUTER AND
BUSINESS SERVICES -- 4.1%
Amdocs*............................................ 20,600 710,700
</TABLE>
_________________
* Non-income producing security.
See Notes to Financial Statements
--P-25--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
---------- ----------
<S> <C> <C>
COMPUTER AND
BUSINESS SERVICES (continued)
CSG Systems International*................. 41,100 $1,626,019
First Data*................................ 20,200 996,113
Galileo International...................... 53,400 1,598,663
Mastech*................................... 11,300 280,028
Modis Professional Services*............... 39,900 568,575
Navigant Consulting*....................... 61,000 663,375
SunGard Data Systems*...................... 97,600 2,318,000
----------
8,761,473
----------
COMPUTER HARDWARE/
PERIPHERALS -- 11.7%
Adaptec*................................... 67,300 3,354,484
American Power Conversion* ................ 171,300 4,512,684
Apex*...................................... 38,700 1,252,913
Comdisco................................... 26,700 994,575
Creative Technology
(Singapore) .............................. 159,900 2,743,284
Electronics for Imaging*................... 97,600 5,721,800
Lanier Worldwide*.......................... 20,900 80,987
Lexmark International
Group (Class A)* 29,300 2,651,650
Pitney Bowes............................... 24,300 1,173,994
Xircom*.................................... 35,100 2,632,500
----------
25,118,871
----------
COMPUTER SOFTWARE -- 24.0%
3DO*....................................... 64,500 587,555
Activision*................................ 28,000 430,500
Acclaim Entertainment*..................... 65,100 335,672
Autodesk................................... 59,000 1,989,406
BMC Software*.............................. 15,300 1,222,566
Check Point Software
Technologies* (Israel).................... 37,800 7,512,750
Citrix Systems*............................ 8,100 996,047
Computer Associates
International............................. 25,200 1,762,425
Compuware* ................................ 106,600 3,967,519
Electronic Arts*........................... 10,100 849,031
Entrust Technologies*...................... 16,300 976,472
HNC Software*.............................. 10,100 1,070,284
Macromedia*................................ 20,400 1,491,750
Microsoft*................................. 66,900 7,808,484
Parametric Technology* .................... 167,800 4,535,844
Peregrine Systems*......................... 8,100 681,159
Rational Software*......................... 50,900 2,505,234
Symantec*.................................. 71,000 4,169,031
<CAPTION>
Shares Value
---------- ----------
<S> <C> <C>
COMPUTER SOFTWARE
(continued)
Synopsys*.................................. 96,400 $6,419,637
Tecnomatix Technologies*
(Israel).................................. 12,300 350,550
Visio*..................................... 35,000 1,662,500
----------
51,324,416
----------
CONTRACT MANUFACTURING/
CIRCUIT BOARDS -- 3.4%
DII Group*................................. 30,600 2,171,644
Hadco*..................................... 26,500 1,351,500
SCI Systems*............................... 46,600 3,829,938
----------
7,353,082
----------
ELECTRONICS CAPITAL
EQUIPMENT -- 11.8%
Applied Materials*......................... 18,300 2,317,809
Asyst Technologies*........................ 13,200 865,013
Cognex*.................................... 51,800 2,018,581
Credence Systems*.......................... 28,400 2,450,388
Electro Scientific Industries* ............ 28,200 2,053,313
KLA Tencor*................................ 12,100 1,347,259
Lam Research*.............................. 10,300 1,149,738
Novellus Systems*.......................... 46,100 5,648,691
Orbotech* (Israel)......................... 37,350 2,901,628
Sensormatic................................ 41,100 716,681
Teradyne*.................................. 57,600 3,801,600
----------
25,270,701
----------
INTERNET/ONLINE -- 1.5%
AppNet Systems*............................ 21,500 939,953
iXL Enterprises*........................... 18,700 1,035,513
PSINet*.................................... 8,300 513,303
Ziff-Davis*................................ 48,200 762,162
----------
3,250,931
----------
MEDIA -- 14.8%
Ackerley Group............................. 19,900 360,688
Adelphia Communications
(Class A)*................................ 22,500 1,475,859
AMFM* ..................................... 122,500 9,585,625
Cablevision Systems
(Class A)*................................ 20,500 1,547,750
CBS*....................................... 67,100 4,290,206
Charter Communications*.................... 91,800 2,008,125
Clear Channel Communications*.............. 9,200 821,100
</TABLE>
_____________
* Non-income producing security.
See Notes to Financial Statements.
--P-26--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
----------- -----------
<S> <C> <C>
MEDIA (continued)
Echostar Communications
(Class A)................................... 18,300 $ 1,781,962
Fox Entertainment Group
(Class A)*.................................. 61,100 1,523,681
Infinity Broadcasting
(Class A)*.................................. 68,275 2,470,702
MediaOne Group*................................ 45,400 3,487,288
Rogers Communications*
(Canada).................................... 31,400 777,150
USA Networks*.................................. 24,800 1,369,425
Ziff-Davis-ZDNet*.............................. 3,900 81,900
-----------
31,581,461
-----------
SEMICONDUCTORS -- 17.4%
Advanced Micro Devices*........................ 50,400 1,458,450
Amkor Technology* ............................. 185,100 5,205,938
Analog Devices*................................ 8,000 744,000
Atmel*......................................... 40,000 1,183,750
Avnet.......................................... 10,600 641,300
C-Cube Microsystems*........................... 74,100 4,635,881
Cypress Semiconductor*......................... 30,000 971,250
Dallas Semiconductor........................... 28,000 1,804,250
Fairchild Semiconductor
International*.............................. 18,800 559,300
Integrated Device Technology*.................. 50,700 1,468,716
Intel.......................................... 40,300 3,315,934
Lattice Semiconductor*......................... 94,500 4,473,984
Linear Technology.............................. 20,100 1,438,406
<CAPTION>
Shares or
Principal
Shares Value
--------- ----------
<S> <C> <C>
SEMICONDUCTORS (continued)
Maxim Integrated Products*..................... 24,200 shs. $ 1,141,181
Microchip Technology*.......................... 45,200 3,100,438
Micron Technology*............................. 40,100 3,117,775
National Semiconductor*........................ 30,100 1,288,656
Xilinx*........................................ 12,400 563,812
-----------
37,113,021
-----------
Total Common Stocks
(Cost $131,048,415) .......................... 203,368,311
------------
CORPORATE BONDS -- 0.1%
(Cost $190,000) .............................. $ 190,000
COMPUTER SOFTWARE -- 0.1%
Activision 63 1/44%, 1/1/2005+................. 189,050
------------
REPURCHASE
AGREEMENTS -- 4.6%
(Cost $9,800,000) ............................ 9,800,000
------------
Total Investments -- 99.7%
(Cost $141,038,415) .......................... 213,357,361
Other Assets Less
Liabilities-- 0.3% ........................... 603,888
------------
Net Assets-- 100.0%............................ $213,961,249
============
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO
<CAPTION>
Shares Value
----------- -----------
<S> <C> <C>
COMMON STOCKS -- 103.1%
ADVERTISING -- 2.8%
DoubleClick*.................................. 2,255 $ 571,149
Mediaplex..................................... 2,200 137,500
------ ------------
708,649
------------
BUSINESS GOODS
AND SERVICES -- 20.0%
Acxion*....................................... 6,800 163,413
Affiliated Computer
Services (Class A)*.......................... 4,400 202,400
<CAPTION>
Shares Value
----------- -----------
<S> <C> <C>
BUSINESS GOODS
AND SERVICES (continued)
Applied Graphics Technologies*................ 13,500 $ 116,016
Copart*....................................... 5,700 246,881
CoStar Group*................................. 8,460 302,974
Creo Products* (Canada)....................... 2,300 88,334
CSG Systems International*.................... 10,100 399,581
FirstService* (Canada)........................ 17,200 237,575
Harris Interactive............................ 6,600 86,419
Indus International*.......................... 21,300 258,263
Metamor Worldwide*............................ 9,800 286,038
</TABLE>
________________
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
--P-27--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- --------
<S> <C> <C>
BUSINESS GOODS
AND SERVICES (continued)
Modis Professional Services* ............... 32,000 $ 456,000
NOVA* ...................................... 23,033 726,979
Personnel Group of America* ................ 23,800 240,975
PROVANT* ................................... 19,770 495,485
U.S. Foodservice* .......................... 33,100 554,425
Wilmar Industries* ......................... 16,600 287,387
----------
5,149,145
----------
CAPITAL GOODS -- 2.3%
Microchip Technology*....................... 5,600 384,125
UCAR International* ........................ 12,400 220,875
----------
605,000
----------
COMPUTER HARDWARE -- 1.3%
Apex* ...................................... 10,700 346,413
----------
COMPUTER SOFTWARE
and Services -- 20.6%
Answerthink Consulting Group................ 2,500 86,406
Aspect Development.......................... 5,100 349,988
Avant!* .................................... 16,500 248,016
CareInsite*................................. 2,400 193,275
CBT Group (ADRs)* (Ireland)................. 7,100 238,294
Egreetings Network.......................... 2,600 26,406
Engage Technologies*........................ 6,600 397,650
Inso*....................................... 4,600 148,638
ISS Group*.................................. 5,800 412,163
JDA Software Group.......................... 7,000 113,750
Keane....................................... 3,200 101,600
Medicalogic................................. 2,500 52,890
National Instruments* ...................... 12,000 461,625
Netscout Systems............................ 3,200 99,600
Sciquest.com................................ 2,700 215,663
Structural Dynamics Research* .............. 15,500 198,109
SunGard Data Systems*....................... 9,600 228,000
THQ*........................................ 4,650 108,112
Transaction Systems
Architects (Class A)* ................... 13,000 364,406
Unigraphics Solutions (Class A)............. 9,800 264,600
VerticalNet*................................ 1,500 245,297
Visio....................................... 7,900 375,250
Visual Networks............................. 2,100 166,162
Xpedior..................................... 7,300 210,103
----------
5,306,003
----------
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
CONSULTING SERVICES -- 3.8%
Corporate Executive Board*.................. 2,900 $ 161,856
Forrester Research*......................... 2,900 199,194
Primark*.................................... 8,300 230,844
Professional Detailing*..................... 12,900 386,597
----------
978,491
----------
CONSUMER GOODS
AND SERVICES -- 4.5%
Carey International*........................ 10,400 255,125
MemberWorks*................................ 16,700 553,709
Pre-Paid Legal Services*.................... 6,500 156,000
Profit Recovery Group
International*........................... 3,900 103,472
SITEL*...................................... 9,800 68,600
TeleSpectrum Worldwide*..................... 4,400 30,937
----------
1,167,843
----------
DRUGS AND HEALTH
CARE -- 12.0%
Affymetrix*................................. 1,200 203,588
Alpharma (Class A)*......................... 5,600 172,200
Barr Laboratories*.......................... 6,800 213,350
Cytyc....................................... 1,300 79,503
Dura Pharmaceuticals*....................... 14,300 199,753
Hanger Orthopedic Group*.................... 11,700 117,000
Noven Pharmaceuticals*...................... 5,600 101,850
Omnicare.................................... 16,500 198,000
Priority Healthcare (Class B)*.............. 3,000 86,906
Province Healthcare*........................ 17,100 328,641
QLT Phototherapeutics....................... 2,600 152,425
Renex*...................................... 15,200 141,075
Schein Pharmaceutical*...................... 6,800 82,450
Teva Pharmaceutical
Industries (ADRs) (Israel)............... 10,100 723,097
Total Renal Care Holdings*.................. 32,800 219,350
Triangle Pharmaceuticals*................... 5,700 72,853
----------
3,092,041
----------
ELECTRONICS -- 12.7%
Anadigics................................... 1,400 66,194
Applied Micro Circuits*..................... 700 89,163
AVX......................................... 9,700 484,394
Burr-Brown*................................. 24,075 868,205
Cognex*..................................... 9,600 374,100
</TABLE>
__________________
* Non-income producing security.
See Notes to Financial Statements.
--P-28--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
ELECTRONICS (continued)
Exar*............................................. 3,200 $ 188,600
General Semiconductor*............................ 27,800 394,412
Hadco*............................................ 3,800 193,800
Orbotech* (Israel)................................ 2,400 186,450
Photon Dynamics*.................................. 3,800 146,775
PMC-Sierra* (Canada).............................. 1,400 224,393
Veeco Instruments*................................ 800 37,425
----------
3,253,911
----------
ENERGY -- 2.4%
Barrett Resources*................................ 3,400 100,088
Cabot Oil & Gas (Class A)......................... 13,700 220,056
Pride International*.............................. 7,700 112,612
Santa Fe Snyder*.................................. 21,600 172,800
----------
605,556
----------
ENVIRONMENTAL
MANAGEMENT -- 0.1%............
Waste Connections*................................ 1,500 21,516
----------
FINANCIAL SERVICES -- 3.3%
Affiliated Managers Group*........................ 9,600 388,200
Insignia Financial Group*......................... 15,666 136,098
Metris Companies.................................. 8,800 314,050
----------
838,348
----------
INDUSTRIAL GOODS
AND SERVICES -- 0.6%
United Rentals*................................... 9,200 157,550
----------
LEISURE AND
ENTERTAINMENT -- 2.7%
Premier Parks*.................................... 23,800 687,225
----------
MEDIA AND
BROADCASTING -- 2.9%
Insight Communications
(Class A)*..................................... 5,800 172,188
Pegasus Communications*........................... 3,300 319,688
SBS Broadcasting*
(Luxembourg)................................... 5,200 253,337
----------
745,213
----------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
MEDICAL PRODUCTS
AND TECHNOLOGY -- 2.2%
Maxygen........................................... 2,500 $ 178,438
PSS World Medical................................. 39,800 378,100
-----------
556,538
-----------
SCHOOLS -- 2.9%
Career Education*................................. 6,600 242,963
DeVRY*............................................ 5,700 106,163
ITT Educational Services*......................... 13,700 211,494
Learning Tree International*...................... 6,200 173,405
-----------
734,025
-----------
SEMICONDUCTORS -- 0.9%
Caliper Technologies.............................. 3,300 220,068
-----------
TELECOMMUNICATIONS -- 4.1%
Concord Communications*........................... 2,300 102,709
Copper Mountain Networks.......................... 2,800 136,150
Illuminet Holdings................................ 2,400 131,925
Inet Technologies................................. 3,100 217,581
Network Access Solutions.......................... 4,600 149,500
Tekelec*.......................................... 10,100 226,303
TranSwitch*....................................... 1,400 101,588
-----------
1,065,756
-----------
TRANSPORTATION -- 1.0%
Expeditors International
of Washington.................................. 4,000 174,500
Forward Air*...................................... 1,850 80,186
-----------
254,686
-----------
Total Investments -- 103.1%
(Cost $21,094,844) ............................ 26,493,977
Other Assets
Less Liabilities-- (3.1)% ..................... (788,143)
-----------
Net Assets-- 100.0%............................... $25,705,834
===========
</TABLE>
__________________
* Non-income producing security.
See Notes to Financial Statements.
--P-29--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS -- 97.0%
AUSTRALIA -- 1.5%
Brambles Industries (Business
Goods and Services)......................... 1,750 $ 48,405
Cochlear (Drugs and
Health Care)................................ 4,800 63,826
CSL (Drugs and Health Care).................... 4,300 61,837
--------
174,068
--------
BRAZIL -- 0.6%
Telesp Participacoes (ADRs)*
(Telecommunications)........................ 3,000 73,313
--------
CHINA -- 0.7%
China Telecom (Hong Kong)
(Telecommunications)........................ 14,000 87,528
--------
DENMARK -- 0.7%
ISS International Service
Systems (Business Goods
and Services)............................... 1,200 80,684
--------
FINLAND -- 5.6%
Nokia (Telecommunications)..................... 2,015 365,420
Sonera Group
(Telecommunications)........................ 4,450 305,094
--------
670,514
--------
FRANCE -- 4.5%
Alcatel (Telecommunications)................... 910 209,036
Cap Gemini (Computer and
Technology Related)......................... 696 176,707
Carrefour Supermarche
(Retailing)................................. 840 154,958
--------
540,701
--------
GERMANY -- 0.7%
Adidas-Salomon (Retailing)..................... 1,150 86,318
--------
GREECE -- 0.9%
Commercial Bank of Greece
(Financial Services)........................ 910 70,243
National Bank of Greece* (GDRs)+
(Financial Services)........................ 2,200 30,938
--------
101,181
--------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
HONG KONG -- 0.8%
HSBC Holdings
(Financial Services)........................... 2,800 $ 39,262
Hutchison Whampoa
(Diversified)............................... 4,000 58,146
--------
97,408
--------
HUNGARY -- 0.2%
Magyar Tavkozlesi "Matav"
(ADRs) (Telecommunications)................. 500 18,000
--------
IRELAND -- 2.3%
Elan (ADRs)* (Drugs and
Health Care)................................ 4,500 132,750
Ryanair Holdings*
(Transportation)............................ 13,600 145,241
--------
277,991
--------
ITALY -- 2.8%
Banca Nazionale del Lavoro "BNL"*
(Financial Services)........................ 38,000 126,723
Mediolanum (Financial Services)................ 15,430 202,094
--------
328,817
--------
JAPAN -- 13.5%
Able (Financial Services)...................... 1,000 59,847
Asahi Pretec (Industrial Goods
and Services)............................... 1 26,306
Chugai Pharmaceutical (Drugs
and Health Care)............................ 5,000 54,029
Cresco (Computer and
Technology Related)......................... 1,000 115,392
Fancl (Consumer Goods
and Services)............................... 200 53,589
H.I.S. (Entertainment and
Leisure).................................... 1,300 92,676
Inter (Financial Services)..................... 1,300 32,417
Itochu Techno (Computer
and Technology Related)..................... 100 62,292
Keyence (Electronics).......................... 500 202,914
Meitec (Computer and
Technology Related)......................... 2,300 73,098
N.I.C. (Drugs and
Health Care)................................ 2,000 81,166
</TABLE>
_______________________
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
--P-30--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
JAPAN (continued)
Nippon Telegraph & Telephone
"NTT" (Telecommunications)................ 6 $ 102,679
NTT Mobile Communication
Network "NTT DoCoMo"
(Telecommunications)...................... 3 115,294
Obic Business Consultants
(Computer and Technology
Related).................................. 500 168,688
Sanix (Consumer Goods
and Services)............................. 1,000 109,525
Shidax Community
(Entertainment and Leisure)............... 1,000 19,558
Sundrug (Retailing).......................... 800 55,545
Tokyo Biso Kogyo (Business
Goods and Services)....................... 5,000 54,713
Touei Housing (Construction
and Property)............................. 2,000 66,302
Xebio (Retailing)............................ 3,000 56,620
----------
1,602,650
----------
MEXICO -- 0.6%
Grupo Carso (ADRs)*
(Telecommunications)...................... 7,000 69,705
----------
NETHERLANDS -- 8.1%
ASM Lithography Holding*
(Electronics Capital
Equipment)................................ 1,820 202,252
Equant* (Business Goods
and Services)............................. 1,790 203,246
Koninklijke (Royal) Philips
Electronics (Electronics)................. 1,748 237,750
KPNQwest*
(Telecommunications)...................... 1,765 117,541
Numico (Consumer Goods
and Services)............................. 2,650 98,892
United Pan-Europe
Communications (A Shares)*
(Telecommunications)...................... 810 103,641
----------
963,322
----------
NORWAY -- 1.2%
Tomra Systems (Business Goods
and Services)............................. 8,220 139,123
----------
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
SINGAPORE -- 0.6%
NatSteel Electronics Group
"NEL" (Electronics)....................... 8,000 $ 42,270
Venture Manufacturing
(Manufacturing and
Industrial Equipment)..................... 3,000 34,404
----------
76,674
----------
SOUTH KOREA -- 0.4%
Korea Telecom (ADRs)*
(Telecommunications)...................... 670 50,083
----------
SPAIN -- 5.6%
Aguas Barcelona (Consumer
Goods and Services)....................... 4,560 66,800
Aguas Barcelona* (Consumer
Goods and Services)....................... 45 642
Altadis (Tobacco)............................ 6,500 92,991
Azkoyen (Manufacturing and
Industrial Equipment)..................... 5,240 41,126
Telefonica Publicidad e
Informacion*
(Telecommunications)...................... 5,600 272,227
Terra Networks* (Computer
and Technology Related)................... 3,500 191,299
----------
665,085
----------
SWEDEN -- 3.2%
L.M. Ericsson Telefon (Series B)
(Telecommunications)...................... 4,655 299,214
Securitas (Series B) (Consumer
Goods and Services)....................... 4,500 81,435
----------
380,649
----------
SWITZERLAND -- 1.0%
Credit Suisse Group
(Financial Services)...................... 575 114,407
----------
UNITED KINGDOM -- 10.8%
Airtours (Entertainment
and Leisure).............................. 8,500 51,233
Ashtead Group (Construction
and Property)............................. 19,500 53,482
AstraZeneca (Drugs and
Health Care).............................. 2,685 113,585
</TABLE>
____________
* Non-income producing security.
See Notes to Financial Statements.
--P-31--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
UNITED KINGDOM (continued)
Bodycote International (Industrial
Goods and Services).............. 15,000 $ 72,572
British Telecommunications
(Telecommunications)............. 2,500 60,679
Cable & Wireless
(Telecommunications)............. 2,000 33,883
CMG (Computer and
Technology Related).............. 2,800 207,777
Games Workshop Group
(Retailing)...................... 4,500 33,677
Granada Group (Entertainment
and Leisure)..................... 9,000 90,873
Hilton Group (Entertainment
and Leisure)..................... 13,000 41,071
Parity (Computer and
Technology Related).............. 21,975 132,986
PizzaExpress (Restaurants).......... 8,000 94,303
SmithKline Beecham (Drugs
and Health Care)................. 3,000 38,203
Spring Group
(Support Services)............... 6,500 17,933
WPP Group (Business Goods
and Services).................... 15,000 236,647
---------
1,278,904
---------
UNITED STATES -- 30.7%
AES (Electric and
Gas Utilities)................... 2,500 186,875
America Online* (Computer
and Technology Related).......... 2,800 211,225
American International Group
(Financial Services)............. 1,593 172,243
BMC Software* (Computer
and Technology Related).......... 2,700 215,747
CBS* (Media)........................ 4,100 262,144
Cintas (Business Goods
and Services).................... 3,700 196,447
Cisco Systems* (Computer and
Technology Related).............. 2,200 235,606
Citigroup (Financial Services)...... 3,150 175,022
Coca-Cola (Consumer Goods
and Services).................... 1,200 69,900
Compuware* (Computer and
Technology Related).............. 6,000 223,313
Corning (Diversified)............... 1,800 232,088
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
UNITED STATES (continued)
Disney, Walt (Entertainment
and Leisure) 4,850 $ 141,863
General Electric (Diversified)...... 1,300 201,175
Halliburton (Resources)............. 3,300 132,825
Infonet Services*
(Communications Services)........ 2,300 60,374
MCI WorldCom*
(Telecommunications)............. 3,150 167,048
Medtronic (Drugs and
Health Care)..................... 4,900 178,544
Microsoft* (Computer and
Technolgy Related)............... 2,000 233,437
Procter & Gamble (Consumer
Goods and Services).............. 1,900 208,169
Tyco International (Diversified).... 4,000 155,500
-----------
3,659,545
-----------
Total Common Stocks
(Cost $6,990,360)................ 11,536,670
-----------
PREFERRED STOCKS -- 1.2%
GERMANY -- 1.2%
Porsche (non-voting)*
(Automotive & Related)........... 43 116,971
Sixt (Retailing).................... 1,350 24,754
-----------
Total Preferred Stocks
(Cost $151,385).................. 141,725
-----------
CORPORATE BONDS -- 0.1%
(Cost $4,920)
GERMANY -- 0.1%
Metro Finance 0%, 9/7/2013
(Financial Services)............. 9,000** 4,720
-----------
Total Investments -- 98.3%
(Cost $7,146,665)............... 11,683,115
Other Assets
Less Liabilities-- 1.7%......... 205,638
-----------
Net Assets-- 100.0% $11,888,753
===========
</TABLE>
____________
* Non-income producing security.
** Principal amount reported in German Deutschemarks.
See Notes to Financial Statements.
-- P-32 --
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
COMMON STOCKS -- 98.0%
AUSTRALIA -- 2.3%
BRL Hardy (Consumer Goods
and Services)................................ 9,754 $ 47,076
Cochlear (Medical Products
and Technology).............................. 5,700 75,794
CSL (Medical Products
and Technology).............................. 5,150 74,060
Data Advantage (Business
Services).................................... 16,600 50,142
Futuris (Automotive Parts
Manufacturing)............................... 32,860 46,176
Pasminco (Metals)............................... 44,000 48,251
Perpetual Trustees Australia
(Financial Services)......................... 2,800 34,934
Sonic Healthcare (Drugs &
Healthcare).................................. 7,800 36,621
TAB (Leisure and Hotels)........................ 22,300 40,708
--------
453,762
--------
CANADA -- 2.5%
Celestica* (Electronics)........................ 2,600 144,300
Cinar (Class B)* (Media)........................ 3,800 94,525
Clarica Life Insurance
(Financial Services)......................... 4,500 80,969
Clearnet Communications
(Class A)*
(Telecommunications)......................... 2,650 91,259
PMC-Sierra* (Technology)........................ 500 80,141
--------
491,194
--------
CHINA -- 0.1%
Yanzhou Coal Mining (Series H)
(Resources).................................. 82,000 22,680
--------
DENMARK -- 1.6%
Danske Traelast (Construction
and Property)................................ 909 79,933
Sondagsavisen (Media)........................... 1,819 107,046
Sydbank (Financial Services).................... 1,525 62,924
TK Development (Construction
and Property)................................ 3,960 72,323
--------
322,226
--------
FINLAND -- 0.4%
Rapala Normark
(Leisure and Hotels)......................... 14,300 69,155
--------
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
FRANCE -- 3.2%
Compagnie Francaise d'Etudes
et de Construction Technip
"Technip" (Construction
and Property)................................ 1,057 $108,410
Du Pareil au Meme (Retailing)................... 887 60,679
Etam Developpement*
(Retailing).................................. 1,493 38,357
L'Europeenne d'Extincteurs
(Manufacturing).............................. 1,242 43,546
Royal Canin (Consumer
Goods and Services).......................... 1,981 139,610
Transiciel (Computer Software).................. 2,000 241,598
--------
632,200
--------
GERMANY -- 4.6%
Beru (Automotive Parts
Manufacturing)............................... 5,543 163,628
Bien-Haus (Construction
and Property)................................ 2,210 34,289
Hawesko Holding
(Telecommunications)......................... 3,185 102,684
Intershop Communications*
(Computer Software).......................... 960 274,685
Kamps (Consumer Goods
and Services)................................ 1,264 87,870
Kamps-New* (Consumer Goods
and Services)................................ 882 59,093
Tecis Holding (Financial
Services).................................... 2,340 96,070
Zapf Creation*
(Manufacturing).............................. 2,600 86,443
--------
904,762
--------
HONG KONG -- 2.1%
ASM Pacific Technology
(Electronics)................................ 16,000 28,404
Cafe de Coral Holdings
(Restaurants)................................ 70,000 28,140
Dah Sing Financial Group
(Financial Services)......................... 11,400 45,462
Esprit Holdings (Retailing)..................... 27,000 29,176
Giordano International
(Retailing).................................. 51,000 52,486
JCG Holdings (Financial
Services).................................... 60,000 33,769
</TABLE>
_________________
* Non-income producing security.
See Notes to Financial Statements.
--P-33--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
HONG KONG (Continued)
Johnson Electric Holdings
(Electronics)........................................... 6,000 $ 38,515
Li & Fung (Consumer Goods
and Services)........................................... 16,400 41,140
Mandarin Oriental (Leisure
and Hotels)............................................. 41,000 28,700
South China Morning Post
(Media)................................................. 56,000 48,267
Varitronix International
(Manufacturing)......................................... 14,000 32,238
--------
406,297
--------
IRELAND -- 2.2%
Esat Telecom Group (ADSs)*
(Telecommunications).................................... 2,700 250,425
Ryanair Holdings*
(Transportation)........................................ 16,580 177,066
--------
427,491
--------
ISRAEL -- 1.2%
Orbotech (Manufacturing)................................. 600 46,613
Teva Pharmaceutical Industries
(Drugs and Health Care)................................. 2,700 193,303
--------
239,916
--------
JAPAN -- 11.9%
Anritsu (Electronics).................................... 4,500 31,684
Asahi Diamond Industries
(Manufacturing)......................................... 6,000 32,447
Asatsu-DK (Advertising) 900 60,727
Bank of Iwate (Financial
Services)............................................... 1,000 41,072
Citizen Electronics (Electronics)........................ 400 72,365
The Eighteenth Bank
(Financial Services).................................... 7,000 25,738
Enplas (Electronics)..................................... 1,700 63,172
Fuji Machine Manufacturing
(Industrial Goods and
Services)............................................... 1,000 80,579
Fujicco (Consumer Goods
and Services)........................................... 4,000 78,232
Fujitec (Construction
and Property)........................................... 3,000 30,070
Glory Kogyo (Manufacturing).............................. 3,000 57,794
Higashi Nihon House
(Construction and Property)............................. 6,000 26,990
H.I.S. (Leisure and Hotel)............................... 1,300 92,676
<CAPTION>
Shares Value
-------- -------
<S> <C> <C>
JAPAN (continued)
Higo Bank (Financial
Services)............................................... 8,000 $ 32,466
Hitachi Information Systems
(Computer Software)..................................... 2,000 116,370
Hitachi Medical (Medical
Products and Technology)................................ 2,000 20,927
Hogy Medical (Medical Products
and Technology)......................................... 500 32,760
Hokkai Can (Paper and
Printing)............................................... 5,000 10,757
Hokuto (Consumer Goods
and Services)........................................... 600 32,212
Horiba Instruments
(Electronics)........................................... 4,000 36,104
Iino Kaiun Kaisha
(Transportation)........................................ 4,000 6,689
Iyo Bank (Financial Services)............................ 5,000 30,706
Japan Information Processing
Service (Computer
Software)............................................... 1,200 44,592
Kentucky Fried Chicken
(Restaurants)........................................... 3,000 38,109
Kissei Pharmaceutical (Drugs
and Health Care)........................................ 2,000 28,946
Komatsu Seiren
(Manufacturing)......................................... 7,000 24,301
Komori (Capital Goods)................................... 2,000 38,119
Maspro Denkoh
(Telecommunications).................................... 2,000 29,317
Meitec (Computer Software)............................... 1,000 31,782
Mitsubishi Gas Chemical
(Chemicals)............................................. 26,000 50,597
Mitsui Home (Construction
and Property)........................................... 12,000 50,577
MKC Stat
(Computer Software)..................................... 1,000 41,952
Moshi Moshi Hotline
(Telecommunications).................................... 300 41,365
Nichicon (Manufacturing)................................. 2,000 61,803
Nippon Broadcasting System
(Media)................................................. 1,000 87,033
Nippon Seiki (Automotive
Parts Manufacturing).................................... 3,000 31,391
Nishio Rent All (Construction
and Property)........................................... 3,000 21,416
Nissha Printing (Paper
and Printing)........................................... 7,000 41,756
Okinawa Electric Power
(Electric Utilities).................................... 1,200 25,230
</TABLE>
_______________
* Non-income producing security.
See Notes to Financial Statements.
--P-34--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
JAPAN (continued)
Olympus Optical (Electronics)............................ 2,000 $ 28,261
People Co (Consumer
Goods and Services)..................................... 600 46,939
Rengo (Paper and Printing)............................... 13,000 66,741
Rohto Pharmaceutical
(Drugs and Health Care)................................. 5,000 33,249
Ryoyo Electro (Electronics).............................. 2,000 31,097
Shimachu (Retailing)..................................... 1,700 23,440
Sundrug (Retailing)...................................... 1,000 69,431
Takasago International
(Chemicals)............................................. 6,000 24,291
Tokyo Style (Manufacturing).............................. 3,000 24,643
Towa Pharmaceutical (Drugs
and Health Care)........................................ 3,000 41,365
Tsubaki Nakashima
(Manufacturing)......................................... 5,000 63,515
Tsudakoma (Manufacturing)................................ 20,000 25,621
Tsutsumi Jewelry (Retailing)............................. 2,500 68,453
Xebio (Retailing)........................................ 2,100 39,634
Yokohama Reito (Distributors)............................ 7,000 36,622
-----------
2,324,125
-----------
LUXEMBOURG -- 0.4%
SBS Broadcasting* (Media)................................ 1,800 87,694
-----------
NETHERLANDS -- 1.2%
Athlon Groep (Consumer Goods
and Services)........................................... 2,913 63,246
Beter Bed Holding (Retailing)............................ 3,117 83,220
Samas Groep (Manufacturing).............................. 7,463 93,235
-----------
239,701
-----------
NORWAY -- 2.3%
Ekornes (Manufacturing).................................. 16,647 166,770
Petroleum Geo-Services*
(Energy)................................................ 4,713 83,873
Tandberg Television* (Media)............................. 13,740 189,800
-----------
440,443
-----------
SINGAPORE -- 1.1%
JIT Holdings (Electronics)............................... 12,000 41,789
NatSteel Electronics Group
"NEL" (Manufacturing)................................... 16,000 31,894
Neptune Orient Lines
(Transportation)........................................ 34,937 46,778
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
SINGAPORE (continued)
Sembcorp Logistics
(Transportation)........................................ 9,000 $ 36,476
Venture Manufacturing
(Electronics)........................................... 4,500 51,606
-----------
208,543
-----------
SPAIN -- 0.5%
Enaco* (Retailing)....................................... 7,600 37,519
TelePizza* (Consumer Goods
and Services)........................................... 15,794 66,832
-----------
104,351
-----------
SWEDEN -- 1.9% Finnveden (Series B)
(Manufacturing)......................................... 6,281 90,415
Mandator
(Telecommunications).................................... 16,311 243,422
Munksjo (Paper and Printing)............................. 4,161 32,271
-----------
366,108
-----------
SWITZERLAND -- 4.5%
Kaba Holding
(Business Services)..................................... 212 193,248
Selecta Group (Consumer
Goods and Services)..................................... 522 164,079
SEZ Holding (Manufacturing).............................. 329 184,283
Swisslog Holding (Industrial
Goods and Services)..................................... 1,171 342,312
-----------
883,922
-----------
TAIWAN -- 0.1%
Taiwan American Fund*
(Miscellaneous)......................................... 1,700 26,987
-----------
UNITED KINGDOM -- 16.4%
Ashtead Group (Construction
and Property)........................................... 76,600 210,089
BTG (Technology)......................................... 7,023 98,866
Clinton Cards (Retailing)................................ 46,200 187,264
Dawsongroup
(Transportation)........................................ 26,600 72,955
Domnick Hunter Group
(Manufacturing)......................................... 20,000 104,206
Druck Holdings (Industrial
Goods and Services)..................................... 11,500 46,986
</TABLE>
___________________
* Non-income producing security.
See Notes to Financial Statements.
--P-35--
<PAGE>
- --------------------------------------------------------------------------------
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
UNITED KINGDOM (continued)
F.I. Group (Computer
Software).......................................... 45,176 $ 561,037
Games Workshop Group
(Retailing)........................................ 9,400 70,347
GWR Group (Media)..................................... 21,000 220,871
Informa Group (Business
Services).......................................... 46,426 457,117
National Express Group
(Transportation)................................... 8,000 89,319
NDS Group* (ADRs) (Computer
Software).......................................... 400 12,225
Parity (Computer Software)............................ 75,936 459,541
Pizza Express (Restaurants)........................... 19,500 229,863
Shire Pharmaceuticals
Group* (Drugs and Health
Care).............................................. 5,500 55,044
Tilbury Douglas (Construction
and Property)...................................... 25,500 104,598
Torotrak* (Automotive Parts
Manufacturing)..................................... 7,000 30,695
Trifast (Electrical Distribution)..................... 8,000 129,772
Trinity International Holdings
(Media)............................................ 7,100 76,054
-----------
3,216,849
-----------
UNITED STATES -- 37.3%
Acxiom* (Computer Software)........................... 4,500 108,141
Affiliated Computer Services
(Class A)* (Business
Services).......................................... 1,200 55,200
Affiliated Managers Group*
(Financial Services)............................... 2,600 105,137
Affymetrix* (Medical Products
and Technology).................................... 400 67,862
Alpharma (Class A) (Medical
Products and Technology)........................... 1,600 49,200
American Capital Strategies
(Financial Services)............................... 1,800 40,781
Anadigics* (Electronics).............................. 400 18,913
AnswerThink Consulting Group*
(Consulting Services).............................. 800 27,650
Apex* (Technology).................................... 2,700 87,412
Applied Graphics Technologies*
(Paper and Printing)............................... 3,700 31,797
Applied Micro Circuits*
(Electronics)...................................... 200 25,475
Aspect Development*
(Computer Software)................................ 1,600 109,800
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
UNITED STATES (continued)
Avant!* (Computer Software)........................... 4,300 $ 64,634
AVX (Electronics)..................................... 2,900 144,819
Barr Laboratories* (Drugs and
Health Care)....................................... 2,000 62,750
Barrett Resources* (Energy)........................... 1,000 29,437
Burr-Brown* (Technology).............................. 6,750 243,422
Cabot Oil & Gas (Class A)
(Energy)........................................... 3,400 54,612
Caliper Technologies*
(Electronics)...................................... 1,000 66,687
CareInsite* (Technology).............................. 600 48,319
Carey International*
(Transportation)................................... 2,900 71,141
Career Education* (Schools)........................... 1,900 69,944
CBT Group* (Computer
Software).......................................... 1,900 63,769
Cognex* (Electronics)................................. 2,600 101,319
Concord Communications*
(Telecommunications)............................... 600 26,794
Copart* (Retailing)................................... 1,800 77,962
Copper Mountain Networks*
(Telecommunications)............................... 800 38,900
Corporate Executive Board*
(Consulting Services).............................. 900 50,231
CoStar Group* (Industrial
Goods and Services)................................ 2,400 85,950
Creo Products* (Computer
Software).......................................... 900 34,566
CSG Systems International*
(Business Services)................................ 2,900 114,731
Cytyc* (Medical Products
and Technology).................................... 400 24,462
DeVRY* (Schools)...................................... 2,500 46,562
DoubleClick* (Technology)............................. 705 178,563
Dura Pharmaceuticals* (Drugs
and Health Care)................................... 3,800 53,081
Egreetings Network*
(Technology)....................................... 800 8,125
Engage Technologies*
(Computer Software)................................ 2,200 132,550
Espeed* (Computer Software)........................... 1,100 39,222
Exar* (Manufacturing)................................. 900 53,044
Expeditors International of
Washington
(Transportation)................................... 1,300 56,712
FirstService*
(Business Services)................................ 4,100 56,631
</TABLE>
___________________
* Non-income producing security.
See Notes to Financial Statements.
--P-36--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ---------
<S> <C> <C>
UNITED STATES (continued)
Forrester Research*
(Consulting Services)..................................... 900 $ 61,819
Forward Air* (Transportation).............................. 500 21,672
General Semiconductor
(Technology).............................................. 7,500 106,406
Hadco* (Contract Manufacturing/
Circuit Boards)........................................... 1,100 56,100
Hanger Orthopedic Group*
(Medical Products and Technology)......................... 3,400 34,000
Harris Interactive*
(Communications Infrastructure)........................... 2,000 26,187
Illuminet Holdings*
(Telecommunications)...................................... 700 38,478
Indus International*
(Business Services)....................................... 6,200 75,175
Inet Technologies*
(Telecommunications)...................................... 900 63,169
Insignia Financial Group*
(Financial Services)...................................... 3,733 32,430
Inso* (Computer Software).................................. 1,200 38,775
Insight Communications*
(Media)................................................... 1,500 44,531
ISS Group* (Computer Software)............................. 1,700 120,806
ITT Educational Services*
(Schools)................................................. 3,700 57,119
JDA Software Group*
(Computer Software)....................................... 2,400 39,000
Keane (Computer Software).................................. 900 28,575
Learning Tree International*
(Business Services)....................................... 1,800 50,344
Maxygen* (Medical Products and Technology)................. 700 49,962
Mediaplex* (Computer Software)............................. 600 37,500
Medialogic* (Medical Products and Technology).............. 700 14,809
MemberWorks* (Consumer Goods and Services)................. 4,800 159,150
Metamor Worldwide* (Business Services)..................... 2,800 81,725
Metris Companies (Financial Services)...................... 2,300 82,081
Microchip Technology*
(Technology).............................................. 1,800 123,469
Modis Professional Services*
(Business Services)....................................... 8,600 122,550
<CAPTION>
Shares Value
------ ---------
<S> <C> <C>
UNITED STATES (continued)
National Instruments*
(Technology).............................................. 3,500 $ 134,641
Netscout Systems* (Computer Software)...................... 1,100 34,237
Network Access Solutions*
(Telecommunications)...................................... 1,400 45,500
NOVA* (Business Services).................................. 6,218 196,256
Noven Pharmaceuticals*
(Medical Products and Technology)......................... 1,500 27,281
OM Group* (Chemicals)...................................... 3,900 134,306
Omnicare (Drugs and Health Care)........................... 4,800 57,600
Pegasus Communications*
(Cable Systems and Satellite Video)....................... 900 87,188
Personnel Group of America*
(Business Services)....................................... 7,400 74,925
Photon Dynamics*
(Technology).............................................. 1,100 42,488
Pre-Paid Legal Services*
(Business Services)....................................... 1,700 40,800
Premier Parks (Leisure and Hotels)......................... 6,400 184,800
Primark (Consumer Goods and Services)...................... 2,200 61,188
Pride International* (Energy).............................. 2,100 30,713
Priority Healthcare* (Drugs and Health Care)............... 800 23,175
Professional Detailing*
(Business Services)....................................... 3,000 89,906
Profit Recovery Group
International* (Financial Services)....................... 1,150 30,511
Provant* (Business Services)............................... 5,060 126,816
Province Healthcare* (Drugs and Health Care)............... 3,700 71,110
PSS World Medical* (Drugs and Health Care)................. 10,500 99,750
QLT Phototherapeutics* (Drugs and Health Care)............. 700 41,038
Renex* (Drugs and Health Care)............................. 1,500 13,923
Santa Fe Snyder*
(Resources)............................................... 5,900 47,200
Schein Pharmaceutical* (Drugs and Health Care)............. 1,900 23,038
Sciquest.com* (Technology)................................. 800 63,900
</TABLE>
__________
* Non-income producing security.
See Notes to Financial Statements.
--P-37--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
UNITED STATES (continued)
Sitel* (Consumer Goods and Services)..................... 2,400 $ 16,800
Structural Dynamics Research*
(Computer Software)................................... 4,400 56,239
SunGard Data Systems*
(Computer Software)................................... 2,600 61,750
Tekelec* (Telecommunications)............................ 2,500 56,017
TeleSpectrum Worldwide*
(Business Services)................................... 1,200 8,438
THQ* (Technology)........................................ 1,350 31,388
Total Renal Care Holdings*
(Drugs and Health Care)............................... 8,433 56,396
Transaction Systems Architects
(Class A)* (Technology)............................... 3,600 100,912
TranSwitch*
(Telecommunications).................................. 400 29,025
Triangle Pharmaceuticals*
(Drugs and Health Care)............................... 1,600 20,450
UCAR International* (Capital Goods)...................... 3,700 65,906
Unigraphics Solutions (Class A)*
(Business Services)................................... 2,600 70,200
United Rentals* (Consumer
Goods and Services)................................... 2,600 44,526
U.S. Foodservice* (Business Services).................... 9,200 154,100
VerticalNet* (Technology)................................ 400 65,413
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
UNITED STATES (continued)
Visio* (Computer Software)............................... 2,100 $ 99,750
Visual Networks* (Technology)............................ 600 47,475
Waste Connections* (Industrial
Goods and Services)................................... 400 5,737
Wilmar Industries* (Consumer
Goods and Services)................................... 4,500 77,906
Xpedior* (Computer Software)............................. 2,200 63,319
-----------
7,306,176
Total Common Stocks
(Cost $13,779,272).................................... 19,174,582
-----------
PREFERRED STOCKS -- 0.3%
(Cost $159,166)
GERMANY -- 0.3%
Sixt (Retailing)......................................... 2,782 51,012
-----------
Total Investments -- 98.2%
(Cost $13,938,438)...................................... 19,225,594
Other Assets
Less Liabilities-- 1.8%................................. 343,052
-----------
Net Assets-- 100.0%...................................... $19,568,646
===========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
-------- --------
<S> <C> <C>
COMMON STOCKS -- 97.8%
AUSTRALIA -- 1.1%
Cable & Wireless*
(Telecommunications).................................. 40,000 $133,694
Ecorp* (Computers and
Business Services).................................... 15,000 37,528
Hutchison Telecom*
(Telecommunications).................................. 22,000 61,830
--------
233,052
--------
FINLAND -- 2.7%
Nokia (Telecommunications)............................... 2,380 431,613
Tietoenator (Computer Software).......................... 2,600 162,409
--------
594,022
--------
<CAPTION>
Shares Value
-------- --------
<S> <C> <C>
FRANCE -- 3.1%
Altran Technologies (Computers
and Business Services)................................ 580 $350,610
STMicroelectronics* (Electronics)........................ 1,850 284,800
STMicroelectronics* (Electronics)........................ 400 60,575
--------
695,985
--------
GERMANY -- 3.0%
ELMOS Semiconductor*
(Semiconductors)...................................... 5,500 238,274
Epcos* (Telecommunications).............................. 3,000 223,665
Mannesmann (Machinery and
Equipment)............................................ 850 205,872
--------
667,811
--------
</TABLE>
_____________
* Non-income producing security.
See Notes to Financial Statements.
--P-38--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
HONG KONG -- 0.8%
Elec & Eltek International
Holdings (Manufacturing)........................... 150,000 $ 27,980
I-Cable Communications* (ADRs)
(Media)............................................ 6,000 153,750
-----------
181,730
-----------
ISRAEL -- 6.8%
Check Point Software
Technologies*
(Computer Software)................................ 3,200 636,000
Gilat Satellite Networks
(Telecommunications)............................... 2,000 237,250
Orbotech* (Electronics Capital
Equipment)......................................... 6,000 466,125
Tecnomatix Technologies*
(Computer Software)................................ 5,700 162,450
-----------
1,501,825
-----------
JAPAN -- 15.1%
Advantest (Electronics Capital
Equipment)......................................... 2,000 528,066
Fujitsu (Semiconductors)............................ 5,000 227,851
Hirose Electronics (Electronics).................... 1,200 268,844
Murata Manufacturing
(Electronics)...................................... 2,000 469,392
Rohm (Semiconductors)............................... 1,000 410,718
Secom (Computer and
Business Services)................................. 2,000 220,027
Sharp (Electronics)................................. 13,000 332,437
Sony (Electronics).................................. 2,000 592,607
TDK (Electronics)................................... 2,000 275,963
-----------
3,325,905
-----------
NETHERLANDS -- 3.0%
ASM Lithography* (Electronics
Capital Equipment)................................. 2,600 294,612
ASM Lithography Holding*
(Electronics Capital
Equipment)......................................... 800 88,902
Koninklijke (Royal) Philips
Electronics (Electronics).......................... 2,024 275,289
-----------
658,803
-----------
SINGAPORE -- 3.2%
Creative Technology (Computer
Hardware/Peripherals).............................. 17,100 293,372
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
SINGAPORE (continued)
Elec & Eltek International
Holdings (Manufacturing)........................... 45,000 $ 145,800
Informatics Holdings
(Computer and
Business Services)................................. 70,000 43,290
Venture Manufacturing
(Electronics)...................................... 20,000 229,361
-----------
711,823
-----------
SOUTH KOREA -- 1.1%
Samsung Electronics (GDRs)+
(Electronics)...................................... 1,622 194,437
Samsung Electronics (GDRs)+
(1/2 non-voting)
(Electronics)...................................... 478 37,762
SK Telecommunications Group
(ADRs) (Telecommunications)........................ 554 21,260
-----------
253,459
-----------
SWEDEN -- 1.0%
L.M. Ericsson Telefon (Series B)
(Communications Infrastructure).................... 3,300 212,118
-----------
SWITZERLAND -- 0.8%
Miracle Holding* (Computer Software)................ 600 173,508
-----------
TAIWAN -- 2.8%
Hon Hai Precision Industry
(GDRs)* (Electronics Capital Equipment)............ 7,900 152,667
Siliconware Precision Industries
(GDRs)* (Electronics Capital Equipment)............ 6,671 96,563
Taiwan Semiconductor
Manufacturing (ADRs)*
(Semiconductors)................................... 8,000 360,000
-----------
609,230
-----------
UNITED KINGDOM -- 6.2%
Cable & Wireless
(Telecommunications)............................... 6,000 101,649
Celltech* (Medical Products
and Technology).................................... 8,700 74,822
</TABLE>
______________
* Non-income producing security.
See Notes to Financial Statements.
--P-39--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Portfolios of Investments (continued)
SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
UNITED KINGDOM (continued)
CMG (Computer and Business
Services)........................................ 3,000 $ 222,618
COLT Telecom Group*
(Telecommunications)............................ 5,100 263,661
Logica (Computer
and Business Services)........................... 5,450 140,217
Sage Group (Computer
Software)........................................ 24,000 293,588
Telewest Communications (Cable
Systems & Satellite Video)....................... 18,000 96,115
Vodafone (Telecommunications)..................... 35,000 172,874
-----------
1,365,544
-----------
UNITED STATES -- 47.1%
3DO* (Computer Software).......................... 5,700 51,923
Acclaim Entertainment (Computer
Software)........................................ 3,600 18,562
Act Manufacturing* (Contract
Manufacturing)................................... 4,200 158,156
Activision* (Computer Software)................... 4,700 72,262
Adaptec* (Computer Hardware/
Peripherals)..................................... 5,700 284,109
Amdocs* (Computer
and Business Services)........................... 8,000 276,000
American Power Conversion*
(Computer Hardware/ Peripherals) ................ 10,700 281,878
Amkor Technology*
(Semiconductors)................................. 14,800 416,250
Apex* (Computer Hardware/Peripherals)............. 5,750 186,156
Arrow Electronics*
(Semiconductors)................................. 1,100 27,913
Artesyn Technologies* (Computer
Hardware/Peripherals)............................ 2,900 60,809
Autodesk (Computer Software)...................... 4,000 134,875
Avnet (Semiconductors)............................ 1,100 66,550
BMC Software* (Computer Software)................. 1,700 135,841
Caliper Technologies*
(Semiconductors)................................. 3,000 200,063
C-Cube Microsystems*
(Semiconductors)................................. 4,000 250,250
Citrix Systems* (Computer Software)............... 1,000 122,969
Cognex* (Electronics Capital Equipment)........... 3,400 132,494
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
UNITED STATES (continued)
Computer Associates
International (Computer
Software)........................................ 1,700 $ 118,894
Compuware* (Computer Software).................... 11,400 424,294
Credence Systems* (Electronics
Capital Equipment)............................... 2,300 198,447
CSG Systems International*
(Computer and Business Services)................. 2,500 98,906
Dallas Semiconductor
(Semiconductors)................................. 2,300 148,206
Deltathree.com*
(Telecommunications)............................. 500 12,844
DII Group* (Contract Manufacturing)............... 2,300 163,228
Electro Scientific Industries*
(Electronics Capital Equipment).................. 2,900 211,156
Electronic Arts* (Computer Software).............. 1,100 92,469
Electronics for Imaging*
(Electronics).................................... 5,700 334,163
Entrust Technologies*
(Computer and Business Services)................. 2,100 125,803
Global Telesystems*
(Telecommunications)............................. 6,400 221,600
Hadco* (Contract Manufacturing)................... 3,400 173,400
HNC Software*
(Computer Software).............................. 2,000 211,938
Lattice Semiconductor*
(Semiconductors)................................. 10,300 487,641
Lexmark International Group
(Class A)*(Computer
Hardware/Peripherals)............................ 2,200 199,100
Linear Technology
(Semiconductors)................................. 2,200 157,438
Mastech* (Computer and Business Services)......... 100 2,478
Microchip Technology*
(Semiconductors)................................. 3,100 212,641
Micron Technology*
(Semiconductors)................................. 2,300 178,825
Microsoft* (Computer Software).................... 4,600 536,906
</TABLE>
______________
*Non-income producing security.
See Notes to Financial Statements.
--P-40--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1999
- -------------------------------------------------------------------------------
SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares Value
-------- ----------
<S> <C> <C>
UNITED STATES (continued)
Navigant Consulting* (Computer
and Business Services)........................... 11,400 $ 123,975
Novellus Systems* (Electronics
Capital Equipment)............................... 4,000 490,125
NTL* (Telecommunications)......................... 2,362 294,364
Pacific Gateway Exchange*
(Telecommunications)............................. 1,800 30,656
Parametric Technology*
(Computer Software).............................. 10,300 278,422
Peregrine Systems* (Computer
Software)........................................ 2,200 185,006
Rational Software* (Computer
Software)........................................ 4,600 226,406
Rogers Communications
(Class B)* (Media)............................... 6,300 155,925
Rudolph Technologies*
(Electronics Capital
Equipment)....................................... 3,000 100,500
SCI Systems* (Contract
Manufacturing)................................... 2,300 189,031
Sensormatic Electronics*
(Electronics).................................... 1,100 19,181
<CAPTION>
Shares Value
-------- -----------
<S> <C> <C>
UNITED STATES (continued)
Somera Communications*
(Communications
Infrastructure).................................. 3,500 $ 43,422
SunGard Data Systems*
(Computer And Business
Services)........................................ 5,700 135,375
Symantec* (Computer Software)..................... 5,700 334,697
Synopsys* (Computer Software)..................... 4,300 286,353
Teradyne* (Electronics Capital
Equipment)....................................... 3,700 244,200
TSI International Software*
(Computer Software).............................. 1,100 62,219
Ziff-Davis* (Media)............................... 2,000 31,625
-----------
10,418,919
-----------
Total Investments -- 97.8%
(Cost $12,482,274) .............................. 21,603,734
Other Assets
Less Liabilities-- 2.2% ......................... 483,613
-----------
Net Assets-- 100.0% .............................. $22,087,347
===========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO
<TABLE>
<CAPTION>
Principal
Shares Value
--------- ----------
<S> <C> <C>
CORPORATE BONDS -- 80.7%
ADVERTISING -- 0.1%
Adams Outdoor Advertising
10-3/4%, 3/15/2006 .............................. $ 25,000 $ 26,125
----------
AEROSPACE -- 0.1%
Condor Systems 11-7/8%,
5/1/2009+ ....................................... 50,000 37,813
----------
AUTOMOTIVE AND
RELATED -- 0.3%
Diamond Triumph Automotive
9-1/4%, 4/1/2008+ ............................... 110,000 77,550
<CAPTION>
Principal
Shares Value
--------- ----------
<S> <C> <C>
BROADCASTING -- 0.9%
AMFM Operating 12-5/8%,
10/31/2006 ...................................... $ 51,800 $ 59,052
Capstar Broadcasting 0%,
(12-3/4% **), 2/1/2009 .......................... 125,000 111,875
Cumulus Media 10-3/8%,
7/1/2008 ........................................ 70,000 73,150
----------
244,077
----------
BUSINESS SERVICES -- 1.4%
AKI 10-1/2%, 7/1/2008 ............................ 55,000 49,225
Iron Age 9-7/8%, 5/1/2008 ........................ 250,000 186,250
</TABLE>
__________
+ Rule 144A security.
* Non-income producing security.
** Deferred interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-41--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ---------
<S> <C> <C>
BUSINESS SERVICES (continued)
Iron Age Holding
0% (12-1/8%**), 5/1/2009 ....................... $ 80,000 $20,400
Muzak 9-7/8%, 3/15/2009 ........................... 100,000 96,500
Pierce Leahy 11-1/8%, 7/15/2006.................... 25,000 26,625
---------
379,000
---------
CABLE SYSTEMS AND
SATELLITE VIDEO -- 6.3%
Avalon Cable Holdings 0%,
(11-7/8%**), 12/1/2008 ........................... 125,000 82,188
Charter Communications
Southeast Holdings 0%,
(9.92%**), 4/1/2011............................... 450,000 266,062
GCI 9-3/4%, 8/1/2007............................... 245,000 229,075
Golden Sky Systems 12-3/8%,
8/1/2006 ......................................... 350,000 374,500
Northland Cable Television
10-1/4%, 11/15/2007 ............................ 150,000 151,125
Pegasus Communications 9-3/4%,
12/1/2006....................................... 85,000 86,275
Pegasus Communications
12-1/2%, 8/1/2007+ ............................. 200,000 219,000
Rogers Cablesystems 11%,
12/1/2015 ..................................... 135,000 149,175
United Pan-Europe
Communications (Netherlands)
10-7/8%, 11/1/2007+............................. 70,000 71,400
United Pan-Europe
Communications (Netherlands)
11-1/4%,11/1/2009+.............................. 75,000 77,343
---------
1,706,143
---------
CHEMICALS -- 2.4%
Koppers Industry 9-7/8%,
12/1/2007 ..................................... 175,000 160,125
Lyondell Chemical (Series B)
9-7/8%, 5/1/2007 .............................. 100,000 102,500
Lyondell Chemical 10-7/8%,
5/1/2009 ......................................... 170,000 175,950
Texas Petrochemicals 11-1/8%,
7/1/2006 ......................................... 225,000 199,125
---------
637,700
---------
<CAPTION>
Principal
Amount Value
--------- ---------
<S> <C> <C>
COMMUNICATIONS
INFRASTRUCTURE -- 2.1%
Crown Castle International 0%
(10-5/8%**),11/15/2007 ........................... $ 75,000 $ 56,719
Pinnacle Holdings 0%
(10%**), 3/15/2008 ............................... 625,000 412,500
SpectraSite Holdings 0%
(11-1/4%**), 4/15/2009 ........................... 175,000 94,062
---------
563,281
---------
CONSUMER PRODUCTS -- 1.9%
Anchor Advanced Products
11-3/4%, 4/1/2004 ................................ 225,000 185,625
Diamond Brand Operating
10-1/8%, 4/15/2008 ............................... 125,000 96,875
French Fragrances (Series B)
10-3/8%, 5/15/2007 ............................... 125,000 123,125
Moll Industries 10-1/2%,
7/1/2008 ......................................... 80,000 32,400
United Industries 9-7/8%,
4/1/2009 ......................................... 90,000 82,575
---------
520,600
---------
CONTAINERS -- 0.6%
BPC Holding 12-1/2%,
6/15/2006 ........................................ 176,000 169,840
---------
CONTRACT MANUFACTURING/
CIRCUIT BOARDS -- 1.9%
Hadco 9-1/2%, 6/15/2008 ........................... 160,000 155,600
MCMS 9-3/4%, 3/1/2008 ............................. 235,000 118,675
Viasystems 9-3/4%, 6/1/2007 ....................... 450,000 240,750
---------
515,025
---------
ENERGY -- 0.4%
Abraxas Petroleum 11-1/2%,
11/1/2004 ........................................ 105,000 96,075
---------
ENVIRONMENTAL SERVICES -- 1.3%
Allied Waste North America
10%, 8/1/2009+ ................................... 375,000 337,500
---------
EQUIPMENT -- 2.2%
Neff 10-1/4%, 6/1/2008 ............................ 150,000 144,750
Universal Compression Holdings
0% (11-3/8%**), 2/15/2009 ........................ 145,000 77,575
</TABLE>
___________
+ Rule 144A security.
** Deferred interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-42--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
-------- ----------
EQUIPMENT (continued)
Williams Scotsman 9-7/8%,
6/1/2007............................. $375,000 $ 361,875
----------
584,200
----------
FINANCIAL SERVICES -- 2.1%
AMRESCO 10%, 3/15/2004................ 150,000 95,250
Dollar Financial Group 10-7/8%,
11/15/2006........................... 225,000 226,125
Ocwen Capital Trust I 10-7/8%,
8/1/2027............................. 200,000 129,000
Veritas Capital Trust 10%,
1/1/2028............................. 145,000 109,112
----------
559,487
----------
FOOD -- 1.2%
AFC Enterprises 10-1/4%,
5/15/2007............................ 110,000 111,237
AmeriKing 10-3/4%, 12/1/2006.......... 130,000 120,250
Carrols 9-1/2%, 12/1/2008............. 85,000 77,775
Packaged Ice 9-3/4%, 2/1/2005......... 15,000 13,800
----------
323,062
----------
GAMING/HOTEL -- 4.5%
Alliance Gaming 10%, 8/1/2007......... 75,000 43,875
Ameristar Casino 10-1/2%,
8/1/2004............................. 225,000 229,500
Casino Magic of Louisiana 13%,
8/15/2003............................ 30,000 34,013
Hollywood Casino 11-1/4%,
5/1/2007............................. 170,000 178,500
Trump Atlantic City Funding
11-1/4%, 5/1/2006.................... 580,000 472,700
Trump Hotels & Casino Resorts
Funding 15-1/2%, 6/15/2005........... 310,000 256,525
----------
1,215,113
----------
HEALTH CARE/MEDICAL
PRODUCTS -- 3.5%
ALARIS Medical 9-3/4%,
12/1/2006............................ 185,000 160,950
ALARIS Medical 0%
(11-1/8%**), 8/1/2008................ 225,000 93,656
Dade International 11-1/8%,
5/1/2006............................. 225,000 220,500
Principal
Amount Value
--------- ----------
HEALTH CARE/MEDICAL
PRODUCTS (continued)
Everest Healthcare Services
9-3/4%, 5/1/2008..................... $135,000 $127,575
Global Health Sciences 11%,
5/1/2008............................. 345,000 215,625
Paracelsus Healthcare 10%,
8/15/2006............................ 225,000 124,875
---------
943,181
---------
INDUSTRIAL/
MANUFACTURING -- 3.5%
Airxcel 11%, 11/15/2007............... 215,000 197,800
Alliance Laundry System 9-5/8%,
5/1/2008............................. 215,000 183,825
Coyne International Enterprises
11-1/4%, 6/1/2008.................... 155,000 139,500
Day International Group 9-1/2%,
3/15/2008............................ 165,000 138,600
Great Lakes Acquisition 0%
(13-1/8%**), 5/15/2009............... 75,000 40,875
Great Lakes Carbon 10-1/4%,
5/15/2008............................ 245,000 233,975
---------
934,575
---------
INTERNET AND RELATED -- 5.2%
Exodus Communications 11-1/4%,
7/1/2008............................. 260,000 269,750
Exodus Communications 10-3/4%,
12/15/2009+.......................... 55,000 56,238
PSINet 10%, 2/15/2005................. 175,000 173,906
PSINet 10-1/2%, 12/1/2006+............ 115,000 116,438
PSINet 11-1/2%, 11/1/2008............. 90,000 94,500
PSINet 11%, 8/1/2009.................. 185,000 191,475
Splitrock Services 11-3/4%,
7/15/2008............................ 80,000 75,200
Verio 13-1/2%, 6/15/2004.............. 175,000 192,937
Verio 10-3/8%, 4/1/2005............... 85,000 87,125
Verio 11-1/4%, 12/1/2008.............. 105,000 110,775
Verio 10-5/8%, 11/15/2009+............ 25,000 25,750
---------
1,394,094
---------
LEISURE -- 1.1%
Affinity Group Holding 11%,
4/1/2007............................. 300,000 286,500
---------
- ----------
+ Rule 144A security.
** Deferred interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-43--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
--------- ----------
METALS -- 0.1%
Renco Metals 11-1/2%,
7/1/2003............................. $ 25,000 $ 21,125
Royal Oak Mines 12-3/4%,
8/15/2006*........................... 225,000 10,125
----------
31,250
----------
MOBILE SATELLITE
SERVICES -- 2.2%
GlobalStar 11-1/4%, 6/15/2004......... 355,000 244,950
GlobalStar 10-3/4%, 11/1/2004......... 230,000 155,250
Loral Space & Communications
9-1/2%, 1/15/2006.................... 50,000 45,250
ORBCOMM Global 14%,
8/15/2004............................ 225,000 163,125
----------
608,575
----------
PAGING -- 3.0%
Metrocall 9-3/4%, 11/1/2007........... 350,000 208,250
Metrocall 11%, 9/15/2008.............. 365,000 220,825
Paging Network 10%,
10/15/2008........................... 715,000 210,925
ProNet 11-7/8%, 6/15/2005............. 265,000 181,525
----------
821,525
----------
PAPER AND PACKAGING -- 0.3%
Crown Paper 11%, 9/1/2005............. 120,000 73,800
----------
PRINTING AND
PUBLISHING -- 8.6%
Advanstar Communications
9-1/4%, 5/1/2008..................... 125,000 118,281
American Lawyer Media 9-3/4%,
12/15/2007........................... 175,000 170,625
American Media Operations
10-1/4%, 5/1/2009.................... 285,000 287,137
Liberty Group Publishing 9-3/8%,
2/1/2008............................. 225,000 201,375
Liberty Group Publishing 0%
(11-5/8%**), 2/1/2009................ 400,000 225,000
NBC Acquisition 0%
(10-3/4%**), 2/15/2009............... 420,000 226,800
Nebraska Book 8-3/4%,
2/15/2008............................ 40,000 35,400
Perry-Judd 10-5/8%, 12/15/2007........ 190,000 171,950
Principal
Amount Value
--------- -------
PRINTING AND
PUBLISHING (continued)
Regional Independent Media
Group 10-1/2%, 7/1/2008.............. $250,000 $254,688
TDL Infomedia Holdings 0%
(15-1/2%**), 10/15/2010+............. 600,000 324,000
TransWestern Holdings 0%
(11-7/8%**), 11/15/2008.............. 250,000 181,875
Von Hoffman Press 10-7/8%,
5/15/2007+........................... 110,000 108,625
----------
2,305,756
----------
RETAILING -- 1.7%
Central Tractor 10-5/8%, 4/1/2007..... 140,000 129,500
Cole National Group 9-7/8%,
12/31/2006........................... 25,000 18,750
Frank's Nursery & Crafts 10-1/4%,
3/1/2008............................. 110,000 79,750
Musicland Group 9-7/8%,
3/15/2008............................ 140,000 130,200
TM Group Holdings 11%,
5/15/2008............................ 115,000 113,563
----------
471,763
----------
SEMICONDUCTORS -- 4.4%
Advanced Micro Devices 11%,
8/1/2003............................. 485,000 486,213
Amkor Technology 10-1/2%,
5/1/2009+............................ 325,000 325,000
Asat Finance 12-1/2%,
11/1/2006+........................... 35,000 37,800
Fairchild Semiconductor 10-3/8%,
10/1/2007............................ 130,000 134,225
Therma-Wave 10-5/8%,
5/15/2004............................ 185,000 191,475
----------
1,174,713
----------
TELECOMMUNICATIONS -- 11.5%
BTI Telecom 10-1/2%, 9/15/2007........ 275,000 257,125
CapRock Communications 12%,
7/15/2008............................ 275,000 286,000
CapRock Communications 11-1/2%,
5/1/2009............................. 65,000 66,706
Global Crossing Holding 9-1/2%,
11/15/2009+.......................... 300,000 297,000
- ----------
+ Rule 144A security.
* Non-income producing security.
** Deferred interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-44--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal
Amount Value
--------- -----------
TELECOMMUNICATIONS
(continued)
GlobeNet Communications 13%,
7/15/2007+................... $200,000 $ 204,750
ICG Holdings 0% (11-5/8%**),
3/15/2007..................... 250,000 163,750
Metromedia Fiber Network
10%, 12/15/2009............... 90,000 92,700
NEXTLINK Communications
12-1/2%, 4/15/2006............ 400,000 433,000
NEXTLINK Communications
10-3/4%, 6/1/2009............. 100,000 103,250
NEXTLINK Communications
10-1/2%, 12/1/2009+........... 75,000 76,500
Talton Holdings 11%,
6/30/2007..................... 155,000 148,025
Viatel 11-1/4%, 4/15/2008....... 115,000 114,713
Viatel 11-1/2%, 3/15/2009....... 175,000 178,061
Williams Communications
10-7/8%, 10/1/2009............ 50,000 52,500
World Access 13-1/4%,
1/15/2008..................... 285,000 257,925
Worldwide Fiber 12%,
8/1/2009+..................... 350,000 362,250
---------
3,094,255
---------
TEXTILE -- 0.2%
Supreme International 12-1/4%,
4/1/2006...................... 55,000 54,931
---------
TRANSPORTATION -- 0.9%
Atlas Air 10-3/4%, 8/1/2005..... 225,000 230,625
---------
UTILITIES -- 0.6%
Midland Cogeneration Venture
11-3/4%, 7/23/2005............ 140,000 152,836
---------
WIRELESS TELEPHONY -- 4.2%
American Cellular 10-1/2%,
5/15/2008..................... 175,000 194,688
Centennial Cellular 10-3/4%,
12/15/2008.................... 225,000 241,875
Nextel Communications 0%
(10.65%**), 9/15/2007......... 95,000 71,250
Nextel Communications 9-3/8%,
11/15/2009+................... 90,000 88,650
Principal
Amount
of Shares Value
--------- --------
WIRELESS TELEPHONY
(continued)
Powertel 11-1/8%, 6/1/2007...... $190,000 $ 199,500
Price Communications Wireless
11-3/4%, 7/15/2007............ 300,000 328,500
-----------
1,124,463
-----------
Total Corporate Bonds
(Cost $24,800,828)............ 21,695,433
-----------
PREFERRED STOCKS -- 8.7%
BROADCASTING -- 1.3%
Capstar Broadcasting
Partnership 12%............... 1,135 shs. 128,539
Cumulus Media 13-3/4%........... 60 67,350
Sinclair Capital 11-5/8%........ 1,500 145,875
-----------
341,764
-----------
CABLE SYSTEMS AND
SATELLITE VIDEO -- 0.9%
Pegasus Communications
(Series A) 12-3/4%............ 178 187,345
Pegasus Communications
(units) 12-3/4%............... 50 55,750
-----------
243,095
-----------
CELLULAR -- 1.1%
Dobson Communications 13%....... 63 68,827
Rural Cellular 11-3/8%.......... 227 233,243
-----------
302,070
-----------
COMMUNICATIONS
INFRASTRUCTURE -- 0.7%
Crown Castle International
12-3/4%....................... 174 180,525
-----------
CONTRACT
MANUFACTURING/
CIRCUIT BOARDS -- 0.2%
MCMS 12-1/2%.................... 1,531 64,685
-----------
HEALTH CARE/MEDICAL
PRODUCTS -- 0.2%
River Holding 11-1/2%........... 979 58,985
-----------
--------
+ Rule 144A security.
** Deferred-interest debentures pay no interest for a stipulated number of
years, after which they pay the indicated coupon rate.
See Notes to Financial Statements.
--P-45--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Shares Value
---------- ----------
INDUSTRIAL/
MANUFACTURING -- 0.4%
Day International Group 12-1/4%.. 132 $ 102,768
----------
PRINTING AND
PUBLISHING -- 0.9%
Liberty Group Publishing
14-3/4%......................... 11,017 245,128
----------
TELECOMMUNICATIONS -- 2.1%
Global Crossing Holding
10-1/2%......................... 2,500 251,875
IXC Communications 12-1/2%....... 182 200,655
Nextlink
Communications 14%.............. 1,948 104,705
----------
557,235
----------
WIRELESS TELEPHONY -- 0.9%
Nextel Communications 11-1/8%.... 253 253,632
----------
Total Preferred Stocks
(Cost $2,499,008)............... 2,349,887
----------
CONVERTIBLE
PREFERRED STOCKS -- 0.5%
INTERNET AND RELATED -- 0.2%
Verio 6-3/4%+.................... 710 40,115
----------
TELECOMMUNICATIONS -- 0.3%
Global Crossing 7%+.............. 305 85,934
----------
Total Convertible
Preferred Stocks
(Cost $111,750)................. 126,049
----------
Shares, Rights
or Warrants Value
-------------- ----------
COMMON STOCKS/RIGHTS/
WARRANTS -- 2.3%
BROADCASTING -- 1.0%
AMFM*............................ 3,500 shs. $ 273,875
----------
ENERGY -- 0.1%
Abraxas Petroleum*............... 8,942 rts. 898
Abraxas Petroleum................ 8,943 shs. 8,384
----------
9,282
----------
TELECOMMUNICATIONS -- 0.1%
Splitrock Services (Warrants
expiring 7/15/2008)*............ 300 wts. 5,962
World Access..................... 895 shs. 17,229
----------
23,191
----------
WIRELESS TELEPHONY -- 1.1%
Price Communications............. 11,000 305,938
----------
Total Common Stocks/Rights/
Warrants (Cost $320,967) ....... 612,286
----------
REPURCHASE
AGREEMENTS -- 3.7%
(Cost $1,000,000) .............. 1,000,000
----------
Total Investments -- 95.9%
(Cost $28,732,553) ............. 25,783,655
Other Assets
Less Liabilities -- 4.1% ....... 1,108,353
-----------
Net Assets -- 100.0% ............ $26,892,008
===========
- ---------
+ Rule 144A security.
* Non-income producing security.
See Notes to Financial Statements.
--P-46--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Shares Value
---------- ----------
COMMON STOCKS -- 64.3%
AEROSPACE/DEFENSE -- 0.4%
General Dynamics....................... 600 $ 31,650
----------
AUTOMOTIVE AND RELATED -- 1.6%
DaimlerChrysler........................ 899 70,347
Ford Motor............................. 1,300 69,469
----------
139,816
----------
CHEMICALS -- 0.8%
duPont (E.I.) de Nemours............... 1,000 65,875
----------
COMMUNICATIONS -- 5.2%
AT&T................................... 2,600 131,950
GTE.................................... 1,300 91,731
MCI WorldCom*.......................... 1,800 95,456
SBC Communications..................... 2,679 130,601
----------
449,738
----------
COMMUNICATIONS
EQUIPMENT -- 1.7%
Lucent Technologies.................... 1,100 82,294
Nortel Networks........................ 600 60,600
----------
142,894
----------
COMPUTER AND BUSINESS
SERVICES -- 13.3%
America Online*........................ 700 52,806
Applied Materials*..................... 1,100 139,322
Cisco Systems*......................... 1,200 128,512
Dell Computer*......................... 1,200 61,162
Electronic Data Systems................ 1,850 123,834
Hewlett-Packard........................ 500 56,969
Intel.................................. 1,800 148,106
International Business
Machines.............................. 1,000 108,000
Microsoft*............................. 2,600 303,469
Xerox.................................. 1,000 22,689
----------
1,144,869
----------
CONSUMER GOODS
AND SERVICES -- 7.9%
Anheuser-Busch......................... 900 63,787
Bestfoods.............................. 1,400 73,587
Clorox................................. 1,500 75,563
Coca-Cola.............................. 1,000 58,250
ConAgra................................ 2,400 54,150
Gillette............................... 1,500 61,781
Shares Value
CONSUMER GOODS -------- ---------
AND SERVICES (continued)
PepsiCo................................ 2,300 $ 81,075
Philip Morris.......................... 2,100 48,694
Procter & Gamble....................... 900 98,606
Sara Lee............................... 2,800 61,775
----------
677,268
----------
DRUGS AND HEALTH
CARE -- 6.1%
Abbott Laboratories.................... 1,500 54,469
American Home Products................. 1,900 74,931
Baxter International................... 1,000 62,813
Bristol-Myers Squibb................... 1,000 64,188
Johnson & Johnson...................... 1,000 93,125
Merck.................................. 1,200 80,475
Pfizer................................. 1,300 42,169
Schering-Plough........................ 1,200 50,625
----------
522,795
----------
ELECTRIC AND GAS
UTILITIES -- 1.8%
Unicom................................. 1,600 53,600
Williams Companies (The)............... 3,200 97,800
----------
151,400
----------
ELECTRICAL
EQUIPMENT -- 2.9%
Honeywell International................ 900 51,919
General Electric....................... 1,300 201,175
----------
253,094
----------
ELECTRONICS -- 1.3%
Agilent Technologies*.................. 800 61,850
Raytheon (Class B)*.................... 1,800 47,813
----------
109,663
----------
ENERGY -- 4.5%
BP Amoco plc (ADRs)
(United Kingdom)...................... 1,400 83,037
Exxon Mobil............................ 1,792 144,368
Royal Dutch Petroleum
(Netherlands)......................... 1,400 84,613
Schlumberger........................... 1,200 67,500
Transocean Sedco Forex................. 232 7,842
----------
387,360
----------
- ---------
* Non-income producing security
See Notes to Financial Statements.
--P-47--
<PAGE>
Seligman Portfolios, Inc.
- ---------------------------------------------------------------
Portfolios of Investments (continued)
- ---------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO
Shares or
Principal
Amount Value
---------- ----------
FINANCE AND
INSURANCE -- 9.9%
American General....................... 1,400 shs. $ 106,225
American International Group........... 875 94,609
Bank of America........................ 2,421 121,504
Bank of New York....................... 3,100 124,000
Chubb.................................. 900 50,681
Citigroup.............................. 2,100 116,681
Fannie Mae............................. 1,100 68,681
Mellon Financial....................... 2,100 71,531
Merrill Lynch.......................... 500 41,750
Morgan (J.P.).......................... 450 56,981
----------
852,643
----------
MACHINERY AND INDUSTRIAL
EQUIPMENT -- 2.0%
United Technologies.................... 2,700 175,500
----------
OFFICE EQUIPMENT -- 0.6%
Pitney Bowes........................... 1,100 53,144
----------
PAPER AND FOREST
PRODUCTS -- 0.8%
Mead................................... 1,500 65,156
----------
PUBLISHING -- 0.6%
Gannett................................ 600 48,937
----------
RETAIL TRADE -- 2.7%
May Department Stores.................. 1,650 53,213
Wal-Mart Stores........................ 2,600 179,725
----------
232,938
----------
TRANSPORTATION -- 0.2%
United Parcel Service
(Class B)............................. 300 20,700
----------
Total Common Stocks
(Cost $5,084,473) .................... 5,525,440
----------
CORPORATE BONDS -- 22.0%
AUTOMOTIVE AND
RELATED --1.1%
Dana 6-1/2%, 3/1/2009.................. $100,000 91,129
----------
Principal
Amount Value
--------- ----------
CHEMICALS -- 1.2%
Lyondell Chemical 9-5/8%,
5/1/2007............................. $100,000 $102,750
----------
COMMUNICATIONS -- 1.9%
AT&T Canada 7.65%,
9/15/2006............................ 50,000 49,846
Qwest Communications 0%,
10/15/2007........................... 50,000 40,750
US West Communications
7.20%, 11/1/2004..................... 75,000 74,632
----------
165,228
----------
COMPUTER AND BUSINESS
SERVICES -- 2.1%
Dell Computer 6.55%,
4/15/2008............................ 100,000 93,844
First Data 5.8%, 12/15/2008........... 100,000 88,195
----------
182,039
----------
DIVERSIFIED -- 0.8%
Textron 6-3/8%, 7/15/2004............. 70,000 67,586
----------
DRUGS AND HEALTHCARE -- 2.8%
American Home Products
7.90%, 2/15/2005..................... 75,000 77,043
Boston Scientific
6-5/8%, 3/15/2005.................... 75,000 69,188
Guidant 6.15%, 2/15/2006.............. 100,000 92,364
----------
238,595
----------
ENERGY -- 1.1%
Phillips Petroleum
6-3/8%, 3/30/2009.................... 100,000 92,607
----------
FINANCE AND
INSURANCE -- 7.3%
Allstate 7.20%, 12/1/2009............. 75,000 72,959
- -----------
* Non-income producing security
See Notes to Financial Statements.
--P-48--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO (continued)
Principal
Amount Value
--------- ----------
FINANCE AND
INSURANCE (continued)
Associates Corp. of North
America 5-3/4%, 11/1/2003.......... $100,000 $ 95,292
Bank of New York
7.30%, 12/1/2009................... 75,000 73,607
Dime Bancorp 7%, 7/25/2001.......... 50,000 49,322
First USA Bank
6-1/8%, 6/25/2001.................. 100,000 99,076
Ford Motor Credit
5.8%, 1/12/2009.................... 100,000 88,900
Heller Financial
6.50%, 7/22/2002................... 55,000 54,012
Household Finance
6%, 5/1/2004....................... 100,000 95,042
----------
628,210
----------
INDUSTRIAL GOODS AND
SERVICES -- 0.4%
Deere 6.55%, 7/14/2004.............. 40,000 38,905
----------
MEDIA -- 0.5%
CSC Holdings
7.25%, 7/15/2008................... 50,000 47,625
----------
RETAIL TRADE -- 2.0%
Nordstrom 5-5/8%, 1/15/2009......... 50,000 43,459
Staples 7-1/8%, 8/15/2007........... 75,000 71,541
Wal-Mart 6.55%, 8/10/2004........... 55,000 54,143
----------
169,143
----------
TRANSPORTATION -- 0.8%
Delta Air Lines
7.70%, 12/15/2005.................. 75,000 73,847
----------
Total Corporate Bonds
(Cost $1,978,459).................. 1,897,664
----------
Principal
Amount Value
--------- ----------
US GOVERNMENT AND
GOVERNMENT
AGENCY SECURITIES -- 12.3%
FHLMC GOLD
5-1/2%, 7/1/2013+.................. $277,637 $ 258,145
Federal National Mortgage
Association:+
6%, 11/1/2010...................... 91,805 88,573
6%, 12/1/2028...................... 190,343 174,323
Government National Mortgage
Association, Mortgage-backed
Pass-through Certificates:+
6%, 12/20/2028..................... 192,124 174,455
6-1/2%, 12/15/2028................. 285,753 268,520
US Government Gtd. Title XI
(Bay Transportation)
7.30%, 6/1/2021.................... 93,000 90,951
----------
Total US Government
and Government
Agency Securities
(Cost $1,125,071) ................. 1,054,967
----------
ASSET-BACKED
SECURITIES+ -- 2.0%
ELECTRIC AND GAS
UTILITIES -- 1.1%
Peco Energy
6.05%, 3/1/2009 ................... 100,000 93,461
PP&L Transition
6.83%, 3/25/2007 .................. 75,000 74,597
----------
Total Asset-Backed Securities
(Cost $174,857) ................... 168,058
----------
Total Investments -- 100.6%
(Cost $8,362,860) ................. 8,646,129
Other Assets
Less Liabilities -- (0.6)% ........ (51,615)
----------
Net Assets -- 100.0% ............... $8,594,514
==========
- -----------
+ Investments in mortgage-backed and asset-backed securities are subject to
principal paydowns. As a result of prepayments from refinancing or
satisfaction of the underlying instruments, the average life may be less than
the original maturity. This in turn may impact the ultimate yield realized
from these investments.
See Notes to Financial Statements.
--P-49--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN INTERNATIONAL GROWTH PORTFOLIO
Shares Value
-------- --------
COMMON STOCKs -- 97.3%
AUSTRALIA -- 1.1%
Colonial (Financial Services).............. 16,800 $ 75,126
Rio Tinto (Metals)......................... 1,100 23,635
Telstra (Telecommunications)............... 2,400 13,049
--------
111,810
--------
FINLAND -- 3.1%
Nokia (Telecommunications)................. 1,201 217,801
Sonera Group
(Telecommunications)...................... 1,500 102,841
--------
320,642
--------
FRANCE -- 10.5%
Aventis* (Drugs and
Health Care).............................. 2,143 123,515
AXA-UAP (Insurance)........................ 887 123,682
Banque Nationale de Paris
(Banking)................................. 1,334 123,111
Cap Gemini (Business Services)............. 453 115,012
Castorama Dubois
Investments (Retailing)................... 251 76,371
STMicroelectronics (Electronics)........... 661 101,758
TOTAL Fina (B Shares)
(Resources)............................... 1,342 179,149
Valeo (Manufacturing)...................... 1,078 83,193
Vivendi (Industrial Goods and
Services)................................. 1,628 147,045
---------
1,072,836
---------
GERMANY -- 10.7%
Bayerische Hypo-und
Vereinsbank (Banking)..................... 1,534 104,785
Bayerische Motoren Werke
"BMW" (Automotive
and Related).............................. 2,947 90,409
Celanese* (Chemicals)...................... 156 2,892
Deutsche Bank (Banking).................... 1,305 110,508
Deutsche Telekom
(Telecommunications)...................... 2,260 159,045
Epcos* (Telecommunications)................ 1,055 78,656
Mannesmann (Industrial
Goods and Services)....................... 699 169,300
Siemens (Manufacturing).................... 1,145 146,506
Thyssen Krupp (Manufacturing).............. 4,430 137,244
Veba (Utilities)........................... 1,884 92,059
---------
1,091,404
---------
Shares Value
-------- --------
GREECE -- 1.0%
Hellenic Telecommunications
Organization
(Telecommunications)...................... 2,700 $ 64,162
National Bank of Greece (GDRs)*+
(Banking)................................. 2,860 40,219
--------
104,381
--------
IRELAND -- 0.6%
Bank of Ireland (Banking).................. 8,000 63,674
--------
ITALY -- 3.5%
Banca Popolare di Brescia
(Banking)................................. 1,759 155,687
ENI (Resources)............................ 17,186 94,539
Unicredito Italiano (Financial
Services)................................. 23,208 114,105
--------
364,331
--------
JAPAN -- 23.2%
ACOM (Financial Services).................. 1,200 117,465
Asahi Bank (Banking)....................... 19,000 117,055
Asahi Breweries (Consumer
Products)................................. 5,000 54,665
Asahi Chemical Industry
(Chemicals)............................... 15,000 77,010
Bridgestone (Automotive and
Related).................................. 2,000 44,004
Fujitsu (Electronics)...................... 2,000 91,140
Itochu Techno-Science
(Business Services)....................... 400 249,169
Marusan Securities
(Financial Services)...................... 11,000 62,605
Mitsui Chemicals (Chemicals)............... 8,000 64,385
Namco (Entertainment and
Leisure).................................. 2,400 155,369
Nippon Steel (Metals)...................... 34,000 79,464
Nippon Telegraph &
Telephone "NTT"
(Telecommunications)...................... 7 119,793
Nippon Television Network
(Media)................................... 110 129,083
NTT Mobile Communication
Network "NTT DoCoMo"
(Telecommunications)...................... 4 153,726
- -------------
* Non-income producing security.
+ Rule 144A security.
See Notes to Financial Statements.
--P-50--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ---------
<S> <C> <C>
JAPAN (continued)
Oracle (Business Services)........ 300 $139,351
Oriental Land (Entertainment
and Leisure)..................... 1,600 137,375
Rinnai (Manufacturing)............ 5,000 92,900
Sony (Consumer Products).......... 600 177,782
THK (Industrial Goods and
Services)........................ 2,000 80,774
Toshiba (Electronics)............. 16,000 122,042
Uny (Retail)...................... 5,000 48,846
Yamaha Motor (Automotive
and Related)..................... 9,000 62,312
---------
2,376,315
---------
NETHERLANDS -- 9.9%
Akzo Nobel (Health and
Household)....................... 2,264 113,593
Equant* (Business Services)....... 811 92,085
Fortis (Financial Services)....... 3,587 129,197
ING Groep (Insurance)............. 2,071 125,067
Koninklijk (Royal) Philips
Electronics (Electronics)........ 878 119,419
Numico (Consumer Products)........ 2,146 80,084
Royal Dutch Petroleum
(Resources)...................... 1,341 82,212
Unilever (Consumer Products)...... 1,219 67,351
VNU (Publishing).................. 2,562 134,688
Wolters Kluwer (Publishing)....... 2,080 70,412
---------
1,014,108
---------
SOUTH KOREA -- 0.5%
Samsung Electronics
(Electronics)................... 213 49,897
---------
SPAIN -- 4.1%
Banco Bilbao Vizcaya*
(Banking)........................ 5,511 78,510
Banco Santander Central
Hispano (Banking)................ 10,113 114,523
Iberdrola (Electronics)........... 5,573 77,260
Telefonica
(Telecommunications)............ 6,221 155,437
---------
425,730
---------
Shares Value
------ -----
Sweden -- 1.6%
Electrolux (Series B)
(Consumer Products).............. 3,962 $ 99,633
L.M. Ericsson Telefon (Series B)
(Telecommunications)............. 1,000 64,278
--------
163,911
--------
SWITZERLAND -- 8.3%
ABB (Industrial Goods and
Services)........................ 1,088 133,204
Clariant (Chemicals).............. 188 89,704
Credit Suisse Group (Financial
Services)........................ 258 51,334
Novartis (Health and
Household)....................... 86 126,402
Roche Holding (Health and
Household)....................... 10 118,816
Swisscom
(Telecommunications)............. 239 96,760
UBS (Banking)..................... 433 117,049
Zurich Allied (Insurance)......... 204 116,447
--------
849,716
--------
UNITED KINGDOM -- 19.2%
Allied Zurich (Insurance)......... 7,500 89,076
AstraZeneca (Drugs and
Health Care)..................... 2,497 105,632
BP Amoco (Resources).............. 16,178 163,217
British American Tobacco
(Tobacco)........................ 9,000 50,424
British Telecommunications
(Telecommunications)............. 6,000 145,629
Bunzl (Manufacturing)............. 13,500 74,489
Cable & Wireless
(Telecommunications)............. 4,000 67,766
FKI* (Industrial Goods and
Services)........................ 24,000 94,757
Glaxo Wellcome (Drugs and
Health Care)..................... 5,000 141,907
Granada Group (Entertainment
and Leisure)..................... 12,500 126,212
Laporte (Chemicals)............... 6,000 52,426
Lloyds TSB Group (Banking)........ 8,000 100,063
Next (Consumer Products).......... 7,000 67,281
</TABLE>
- ------------
* Non-income producing security.
See Notes to Financial Statements.
--P-51--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
United Kingdom (continued)
Railtrack Group (Transportation)..... 5,000 $ 82,119
Reckitt Benckisen (Health and
Household)........................ 6,000 56,699
Royal Bank of Scotland
(Banking)......................... 6,800 120,374
Scottish & Newcastle
(Consumer Products)............... 8,000 56,180
SmithKline Beecham (Health
and Household).................... 6,700 85,321
United Utilities (Utilities)......... 8,500 88,231
WPP Group (Media).................... 12,500 197,206
-----------
1,965,009
-----------
Value
-----------
Total Investments -- 97.3%
(Cost $7,452,649)................. $ 9,973,764
Other Assets
Less Liabilities -- 2.7%.......... 274,725
-----------
Net Assets -- 100.0%................. $10,248,489
===========
- ----------------------------------------------------------
SELIGMAN LARGE-CAP GROWTH PORTFOLIO
Shares Value
------ -----------
COMMON STOCKS -- 87.6%
CAPITAL GOODS -- 9.9%
Corning.............................. 700 $ 90,256
General Electric..................... 1,050 162,488
Honeywell International.............. 550 31,728
Tyco International................... 2,000 77,750
-----------
362,222
-----------
COMMUNICATIONS
SERVICES -- 5.4%
Lucent Technologies.................. 1,000 74,812
MCI WorldCom*........................ 2,325 123,298
-----------
198,110
-----------
COMPUTER AND BUSINESS
SERVICES -- 0.6%
International Business Machines...... 200 21,600
-----------
CONSUMER
CYCLICALS -- 10.0%
Carnival............................. 1,100 52,594
Dayton Hudson........................ 600 44,062
Harley-Davidson...................... 450 28,828
Home Depot........................... 600 41,137
Interpublic Group of
Companies......................... 300 17,306
Newell Rubbermaid.................... 1,300 37,700
Wal-Mart Stores...................... 2,100 145,163
-----------
366,790
-----------
Shares Value
------ -----------
CONSUMER STAPLES -- 12.4%
CBS*................................. 1,150 $ 73,528
Charter Communications............... 500 10,937
Coca-Cola............................ 2,350 136,888
Colgate-Palmolive.................... 600 39,000
Disney (Walt)........................ 1,000 29,250
McDonald's........................... 1,000 40,312
Procter & Gamble..................... 900 98,606
Time Warner.......................... 350 25,353
-----------
453,874
-----------
ENERGY -- 4.0%
Enron................................ 1,700 75,438
Schlumberger......................... 1,150 64,688
Transocean Sedco Forex............... 223 7,516
-----------
147,642
-----------
ELECTRONIC
TECHNOLOGY -- 10.4%
Agilent Technologies*................ 300 23,194
Broadcom (Class A)*.................. 100 27,234
Cisco Systems*....................... 900 96,384
Dell Computer*....................... 1,000 50,969
Intel................................ 800 65,825
Micron Technology*................... 600 46,650
Sun Microsystems*.................... 200 15,481
Veritas Software*.................... 150 21,464
Xilinx*.............................. 800 36,375
-----------
383,576
-----------
</TABLE>
- -----------
* Non-income producing security.
See Notes to Financial Statements.
--P-52--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN LARGE-CAP GROWTH PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
FINANCIAL SERVICES -- 3.4%
American International Group.......................... 625 $ 67,578
Citigroup............................................. 550 30,559
Wells Fargo........................................... 650 26,284
----------
124,421
----------
HEALTH CARE -- 4.5%
Amgen................................................. 400 24,013
McKesson HBOC......................................... 1,100 24,819
Medtronic............................................. 1,200 43,725
Merck................................................. 500 33,531
Pfizer................................................ 1,250 40,547
----------
166,635
----------
PHARMACEUTICAL -- 2.3%
Johnson & Johnson..................................... 400 37,250
Lilly (Eli)........................................... 700 46,550
----------
83,800
----------
TECHNOLOGY -- 21.0%
America Online*....................................... 1,000 75,438
BMC Software*......................................... 600 47,962
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
TECHNOLOGY (continued)
Computer Associates International..................... 1,100 $ 76,931
Compuware*............................................ 1,900 70,716
Microsoft*............................................ 1,800 210,094
Motorola.............................................. 650 95,713
Nokia (ADRs) (Finland)................................ 400 76,000
Oracle*............................................... 500 56,016
Siebel Systems*....................................... 200 16,825
Yahoo!*............................................... 100 43,272
----------
768,967
----------
UTILITIES -- 3.7%
AES*.................................................. 1,800 134,550
----------
Total Investments -- 87.6%
(Cost $2,592,479).................................. 3,212,187
Other Assets
Less Liabilities -- 12.4%.......................... 456,187
----------
Net Assets -- 100.0%.................................. $3,668,374
==========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN LARGE-CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
COMMON STOCKS -- 97.8%
AEROSPACE -- 6.7%
Goodrich (B.F.)....................................... 7,000 $ 192,500
United Technologies................................... 3,000 195,000
----------
387,500
----------
AUTOMOTIVE AND RELATED -- 7.0%
Ford Motor............................................ 4,100 219,094
General Motors........................................ 2,500 181,719
----------
400,813
----------
BANKING -- 9.4%
Bank of America....................................... 3,205 160,851
Bank of New York...................................... 5,000 200,000
Summit Bancorp........................................ 6,000 183,750
----------
544,601
----------
CHEMICALS -- 2.3%
Dow Chemical.......................................... 1,000 133,625
----------
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
DRUGS AND HEALTH
CARE -- 9.4%
American Home Products................................ 1,900 $ 74,931
Bristol-Myers Squibb.................................. 2,200 141,212
Humana*............................................... 20,000 163,750
United Healthcare..................................... 3,000 159,375
----------
539,268
----------
ENERGY -- 4.1%
El Paso Energy........................................ 1,900 73,744
Texaco................................................ 3,000 162,938
----------
236,682
----------
FINANCE AND
INSURANCE -- 19.8%
Allstate.............................................. 7,000 168,000
AXA Financial......................................... 6,400 216,800
Citigroup............................................. 3,900 216,694
</TABLE>
_________
* Non-income producing security.
See Notes to Financial Statements.
--P-53--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Portfolios of Investments (continued)
- --------------------------------------------------------------------------------
SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
FINANCE AND
INSURANCE (continued)
Fannie Mae...................................... 2,600 $ 162,337
St. Paul Companies.............................. 7,000 235,813
Washington Mutual............................... 5,425 141,050
----------
1,140,694
----------
FOOD -- 6.6%
ConAgra......................................... 1,200 27,075
Dole Food....................................... 8,500 138,125
Safeway*........................................ 6,000 213,375
----------
378,575
----------
HOUSEHOLD PRODUCTS
AND FURNISHINGS -- 8.8%
Armstrong World Industries...................... 3,600 120,150
Dial............................................ 7,400 179,912
Kimberly-Clark.................................. 3,200 208,800
----------
508,862
----------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 7.1%
Baxter International............................ 3,000 188,438
Medtronic....................................... 6,000 218,625
----------
407,063
----------
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
PACKAGING -- 3.1%
Crown Cork & Seal............................... 8,000 $ 179,000
----------
PAPER AND FOREST
PRODUCTS -- 8.1%
Champion International.......................... 3,700 229,169
Georgia-Pacific Group........................... 4,700 238,525
----------
467,694
----------
RETAIL TRADE -- 2.6%
Tandy........................................... 3,000 147,562
----------
TOBACCO -- 2.8%
Philip Morris................................... 6,850 158,834
----------
Total Investments -- 97.8%
(Cost $5,840,799).............................. 5,630,773
Other Assets
Less Liabilities -- 2.2%....................... 127,107
----------
Net Assets -- 100.0%............................ $5,757,880
==========
</TABLE>
- --------------------------------------------------------------------------------
SELIGMAN SMALL-CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
COMMON STOCKS -- 99.1%
ADVERTISING -- 3.6%
True North Communications....................... 3,500 $ 156,406
----------
APPAREL AND TEXTILES -- 2.8%
Cutter & Buck*.................................. 8,000 121,500
----------
APPLIANCES -- 3.9%
Windmere-Durable Holdings....................... 10,000 170,000
----------
BANKING -- 4.7%
Bay View Capital................................ 7,200 102,150
Commercial Federal.............................. 6,000 106,875
----------
209,025
----------
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
BUILDING AND
CONSTRUCTION -- 3.0%
Dal-Tile International*......................... 13,000 $ 131,625
----------
BUSINESS SERVICES -- 3.4%
Complete Business Solutions*.................... 6,000 150,562
----------
CAPITAL GOODS -- 1.3%
Apogee Enterprises.............................. 11,000 55,344
----------
CONSUMER GOODS AND
SERVICES -- 4.8%
Fresh Del Monte Produce......................... 11,000 99,000
Rent-Way*....................................... 6,000 112,125
----------
211,125
----------
</TABLE>
____________
* Non-income producing security.
See Notes to Financial Statements.
--P-54--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
SELIGMAN SMALL-CAP VALUE PORTFOLIO (continued)
<TABLE>
<CAPTION>
Shares Value
------- --------
<S> <C> <C>
DISTRIBUTORS -- 2.5%
Cubic.......................................... 5,050 $110,469
---------
DRUGS AND
HEALTHCARE -- 7.2%
Apria Healthcare Group......................... 8,000 143,500
Omnicare....................................... 15,000 180,000
---------
323,500
---------
FINANCE AND
INSURANCE -- 2.6%
Liberty Financial.............................. 5,000 114,688
---------
LEISURE AND RELATED -- 3.8%
Harman International Industries................ 3,000 168,375
---------
MACHINERY -- 3.0%
Stewart & Stevenson Services................... 11,000 130,281
---------
MANUFACTURING -- 3.3%
Mueller Industries*............................ 4,000 145,000
---------
MEDICAL PRODUCTS AND
TECHNOLOGY -- 4.1%
Pharmacopeia................................... 8,000 180,750
---------
OIL AND GAS -- 8.6%
Marine Drilling*............................... 7,000 157,063
Midcoast Energy Resources...................... 5,000 83,750
Valero Energy.................................. 7,000 139,125
---------
379,938
---------
PACKAGING/
CONTAINERS -- 4.7%
American National Can Group.................... 8,000 104,000
Applied Extrusion Technologies*................ 16,000 101,000
---------
205,000
---------
Shares Value
-------- ---------
PLASTICS -- 2.2%
Lamson & Sessions*............................ 19,500 $ 95,062
---------
PRINTING AND
PUBLISHING -- 2.0%
Cadmus Communications......................... 10,050 86,053
---------
RESTAURANTS -- 2.1%
Jack In The Box................................ 4,450 92,059
---------
RETAIL TRADE -- 15.7%
Abercrombie & Fitch (Class A)*................. 4,000 106,750
Fred's......................................... 10,500 167,016
Stage Stores*.................................. 25,000 57,813
Trans World Entertainment...................... 10,500 109,594
Urban Outfitters*.............................. 6,500 189,719
The Wet Seal (Class A)*........................ 5,000 61,406
---------
692,298
---------
SPECIALTY METALS/
STEEL -- 4.5%
AK Steel Holding............................... 6,000 113,250
Olympic Steel*................................. 18,000 85,781
---------
199,031
---------
TRANSPORTATION -- 5.3%
ABC-NACO*...................................... 9,000 74,812
Pittston BAX Group............................. 15,000 159,375
---------
234,187
---------
Total Investments -- 99.1%
(Cost $4,457,997)............................. 4,362,278
Other Assets
Less Liabilities -- 0.9%...................... 41,090
---------
Net Assets-- 100.0% ........................... $4,403,368
=========
</TABLE>
- -----------
* Non-income producing security.
See Notes to Financial Statements.
--P-55--
<PAGE>
- -------------------------------------------------------------------------------
Statements of Assets and Liabilities
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Seligman Cash Common Communications Seligman
Seligman Seligman Capital Management Stock and Information Frontier
Portfolio Bond Portfolio Portfolio Portfolio Portfolio Portfolio
---------- -------------- ----------- ----------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings ....................... $ 4,689,899 $26,329,995 $ -- $46,175,803 $203,557,361 $26,493,977
Short-term holdings...................... 500,000 2,100,000 16,653,704 500,000 9,800,000 --
----------- ----------- ----------- ----------- ------------ -----------
Total Investments......................... 5,189,899 28,429,995 16,653,704 46,675,803 213,357,361 26,493,977
Cash....................................... 91,640 182,715 965,095 -- -- --
Interest and dividends receivable.......... 72,867 7,602 370 64,156 10,368 --
Receivable for Capital Stock sold.......... 100 190 -- 675,093 1,183,367 2,487
Receivable from associated companies...... -- -- 7,346 -- -- 2,816
Receivable for securities sold............ -- 219,211 -- -- 193,059 482,973
----------- ----------- ----------- ----------- ------------- -----------
Total Assets............................... 5,354,506 28,839,713 17,626,515 47,415,052 214,744,155 26,982,253
----------- ----------- ----------- ----------- ------------- -----------
LIABILITIES:
Payable for Capital Stock redeemed....... 382,249 669,270 664 1,855 53,245 428,815
Payable to associated companies.......... 97 -- -- -- -- --
Payable for securities purchased.......... -- 555,114 -- -- -- 62,014
Payable to custodian...................... -- -- -- 63,564 535,369 745,381
Unrealized depreciation on
foreign currencies and forward
currency contracts....................... -- -- -- -- -- --
Accrued expenses and other................ 25,012 29,536 14,470 46,912 194,292 40,209
----------- ----------- ----------- ----------- ------------- -----------
Total Liabilities......................... 407,358 1,253,920 15,134 112,331 782,906 1,276,419
----------- ----------- ----------- ----------- ------------- -----------
Net Assets ............................... $ 4,947,148 $27,585,793 $17,611,381 $47,302,721 $ 213,961,249 $25,705,834
=========== =========== =========== =========== ============= ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par..................... $ 534 $ 1,154 $ 17,609 $ 2,848 $ 8,014 $ 1,418
Additional paid-in-capital............... 5,376,348 17,033,061 17,591,399 34,577,756 123,543,029 20,738,333
Undistributed net investment
income (loss).......................... (6,147) (6,209) -- 3,809 (3,542) (3,266)
Undistributed/accumulated net
realized gain (loss)..................... (228,598) 1,836,587 2,373 1,415,262 18,094,802 (429,784)
Net unrealized appreciation
(depreciation) of investments............ (194,989) 8,721,200 -- 11,303,046 72,318,946 5,399,133
Net unrealized appreciation
(depreciation) on translation
of assets and liabilities
denominated in foreign
currencies and forward
currency contracts....................... -- -- -- -- -- --
----------- ----------- ----------- ----------- ------------- -----------
Net Assets ............................... $ 4,947,148 $27,585,793 $17,611,381 $47,302,721 $ 213,961,249 $25,705,834
=========== =========== =========== =========== ============= ===========
Shares of Capital Stock
Outstanding ($.001 par value)............ 533,565 1,154,036 17,609,008 2,848,031 8,013,532 1,417,839
=========== =========== =========== =========== ============= ===========
Net Asset Value per Share................. $ 9.27 $ 23.90 $ 1.00 $ 16.61 $ 26.70 $ 18.13
=========== =========== =========== =========== ============= ===========
</TABLE>
P-56
<PAGE>
- ------------------------------------------------------------------------------
December 31, 1999
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Seligman Global Smaller Global High-Yield Seligman
Global Growth Companies Technology Bond Income
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- -------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings ....................... $11,683,115 $19,225,594 $21,603,734 $24,783,655 $ 8,646,129
Short-term holdings....................... -- -- -- 1,000,000 --
---------- ----------- ----------- ----------- ---------------
Total Investments ........................ 11,683,115 19,225,594 21,603,734 25,783,655 8,646,129
Cash...................................... 62,707 275,570 285,405 590,403 --
Interest and dividends receivable......... 5,980 17,526 3,521 583,341 49,743
Receivable for Capital Stock sold......... 138,720 26,705 236,704 100 200
Receivable from associated
companies................................ 2,063 -- -- -- --
Receivable for securities sold............ 97,927 109,516 -- -- --
---------- ----------- ----------- ----------- ---------------
Total Assets ............................. 11,990,512 19,654,911 22,129,364 26,957,499 8,696,072
---------- ----------- ----------- ----------- ---------------
LIABILITIES:
Payable for Capital Stock
redeemed................................. 1,021 1,541 1,795 29,973 348
Payable to associated companies........... -- 3,345 1,759 210 4,997
Payable for securities purchased.......... 71,910 17,866 -- -- --
Payable to custodian...................... -- -- -- -- 73,090
Unrealized depreciation on
foreign currencies and forward
currency contracts....................... 6,151 9,740 1,578 -- --
Accrued expenses and other................ 22,677 53,773 36,885 35,308 23,123
---------- ----------- ----------- ----------- ---------------
Total Liabilities......................... 101,759 86,265 42,017 65,491 101,558
---------- ----------- ----------- ----------- ---------------
Net Assets ............................... $11,888,753 $19,568,646 $22,087,347 $26,892,008 $ 8,594,514
========== =========== =========== =========== ===============
COMPOSITION OF NET ASSETS:
Capital Stock, at par..................... $ 653 $ 1,120 $ 806 $ 2,803 $ 867
Additional paid-in-capital................ 7,231,177 13,791,658 11,896,605 31,995,085 8,293,951
Undistributed net investment
income (loss)........................... (2,465) (3,428) (2,460) (3,013) 3,035
Undistributed/accumulated net
realized gain (loss)..................... 129,308 502,186 1,072,509 (2,153,969) 13,392
Net unrealized appreciation
(depreciation) of investments............ 4,633,911 5,233,063 9,067,367 (2,948,898) 283,269
Net unrealized appreciation
(depreciation) on translation
of assets and liabilities
denominated in foreign
currencies and forward
currency contracts....................... (103,831) 44,047 52,520 -- --
---------- ----------- ----------- ----------- ---------------
Net Assets ............................... $11,888,753 $19,568,646 $22,087,347 $26,892,008 $ 8,594,514
========== =========== =========== =========== ===============
Shares of Capital Stock
Outstanding ($.001 par value)............ 652,622 1,119,504 805,633 2,802,807 867,451
========== =========== =========== =========== ===============
Net Asset Value per Share................. $18.22 $17.48 $27.42 $9.59 $9.91
========== =========== =========== =========== ===============
</TABLE>
<TABLE>
<CAPTION>
Seligman Seligman Seligman Seligman
International Large-Cap Large-Cap Small-Cap
Growth Growth Value Value
Portofolio Portfolio Portfolio Portfolio
---------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (see
portfolios of investments):
Long-term holdings ....................... $ 9,973,764 $ 3,212,187 $ 5,630,773 $ 4,362,278
Short-term holdings....................... -- -- -- --
---------- ----------- ----------- -----------
Total Investments......................... 9,973,764 3,212,187 5,630,773 4,362,278
Cash...................................... 276,028 353,327 59,237 19,679
Interest and dividends receivable......... 21,534 1,225 13,393 945
Receivable for Capital Stock sold......... 7,600 4,776 3,428 33,191
Receivable from associated
companies................................ 809 7,882 -- --
Receivable for securities sold............ -- 109,233 94,028 --
---------- ----------- ----------- -----------
Total Assets ............................. 10,279,735 3,688,630 5,800,859 4,416,093
---------- ----------- ----------- -----------
LIABILITIES:
Payable for Capital Stock
redeemed................................. 409 2,084 246 169
Payable to associated companies........... -- -- 85 662
Payable for securities purchased.......... -- 9,135 29,824 --
Payable to custodian...................... -- -- -- --
Unrealized depreciation on
foreign currencies and forward
currency contracts....................... 6,920 -- -- --
Accrued expenses and other................ 23,917 9,037 12,824 11,894
Total Liabilities......................... 31,246 20,256 42,979 12,725
---------- ----------- ----------- -----------
Net Assets ............................... $10,248,489 $ 3,668,374 $ 5,757,880 $ 4,403,368
========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Capital Stock, at par..................... $ 616 $ 302 $ 621 $ 545
Additional paid-in-capital................ 7,396,589 3,053,423 5,948,246 4,325,975
Undistributed net investment
income (loss)........................... 63,641 (304) (968) (1,003)
Undistributed/accumulated net
realized gain (loss)..................... 273,996 (4,755) 20,007 173,570
Net unrealized appreciation
(depreciation) of investments............ 2,631,816 619,708 (210,026) (95,719)
Net unrealized appreciation
(depreciation) on translation
of assets and liabilities
denominated in foreign
currencies and forward
currency contracts....................... (118,169) -- -- --
---------- ----------- ----------- -----------
Net Assets ............................... $10,248,489 $ 3,668,374 $ 5,757,880 $ 4,403,368
========== =========== =========== ===========
Shares of Capital Stock
Outstanding ($.001 par value)............ 616,444 301,726 620,631 545,263
========== =========== =========== ===========
Net Asset Value per Share................. $16.63 $12.16 $9.28 $8.08
========== =========== =========== ===========
</TABLE>
[FN]
- -------------------
See Notes to Financial Statements.
</FN>
--P-57--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman
Seligman Seligman Communications
Seligman Seligman Cash Common and Seligman
Bond Capital Management Stock Information Frontier
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest...................................... $ 387,410 $ 70,360 $ 737,469 $ 170,589 $ 290,742 $ 38,673
Dividends**................................... -- 65,824 -- 866,227 209,037 34,633
----------- ----------- ----------- ----------- -------------- -----------
Total Investment Income....................... 387,410 136,184 737,469 1,036,816 499,779 73,306
----------- ----------- ----------- ----------- -------------- -----------
EXPENSES:
Management fee................................ 25,174 87,388 59,121 227,424 1,069,705 203,535
Auditing fee.................................. 6,312 11,818 19,227 23,961 51,332 13,790
Directors' fees and expenses.................. 4,987 5,469 4,570 5,984 6,385 5,223
Custody and related services.................. 2,207 12,269 6,416 17,894 60,475 26,087
Registration.................................. 1,756 3,065 2,093 7,017 13,616 2,698
Shareholder reports and
communications............................... 1,576 3,856 1,484 3,879 13,328 3,676
Legal fee..................................... 1,195 2,147 1,718 4,306 9,559 2,472
Miscellaneous................................. 1,715 2,849 1,550 5,511 8,603 3,147
----------- ----------- ----------- ----------- -------------- -----------
Total Expenses Before Waiver/
Reimbursement................................ 44,922 128,861 96,179 295,976 1,233,003 260,628
Waiver/reimbursement of
expenses..................................... (7,167) -- (96,179) -- -- (2,816)
----------- ----------- ----------- ----------- -------------- -----------
Total Expenses After Waiver/
Reimbursement................................ 37,755 128,861 -- 295,976 1,233,003 257,812
----------- ----------- ----------- ----------- -------------- -----------
Net Investment Income (Loss).................. 349,655 7,323 737,469 740,840 (733,224) (184,506)
----------- ----------- ----------- ----------- -------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments....... (228,598) 7,533,936 1,233 10,832,866 50,179,223 693,862
Net realized loss from foreign
currency transactions........................ -- -- -- -- -- --
Net change in unrealized
appreciation/depreciation of investments.... (454,121) 2,159,898 -- (4,409,218) 49,869,648 1,462,795
Net change in unrealized
appreciation/depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts............... -- -- -- -- -- --
----------- ----------- ----------- ----------- -------------- -----------
Net Gain (Loss) on Investments
and Foreign Currency Transactions............ (682,719) 9,693,834 1,233 6,423,648 100,048,871 2,156,657
----------- ----------- ----------- ----------- -------------- -----------
Increase (Decrease) in Net
Assets from Operations....................... $ (333,064) $ 9,701,157 $ 738,702 $ 7,164,488 $ 99,315,647 $ 1,972,151
=========== =========== =========== =========== ============== ===========
</TABLE>
_________________
* For the period April 30, 1999, commencement of operations, to December 31,
1999.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
**Net of foreign tax withheld as follows: $ -- $ -- $ -- $ 9,328 $ 3,369 $ 724
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Seligman Seligman Seligman
Global High-Yield Seligman Global Seligman
Technology Bond Global Growth Income Smaller Companies
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ------------- ----------- -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................... $ 17,767 $ 3,240 $ 50,944 $ 322,411 $ 123,859
Dividends**................................. 78,929 165,082 44,055 2,986,551 365,913
---------- ---------- ----------- ----------- ------------
Total Investment Income..................... 96,696 168,322 94,999 3,308,962 489,772
---------- ---------- ----------- ----------- ------------
EXPENSES:
Management fee.............................. 94,873 179,034 107,062 150,001 46,448
Auditing fee................................ 7,736 10,578 7,966 14,261 8,543
Directors' fees and expenses................ 6,365 6,602 6,356 5,193 5,359
Custody and related services................ 21,239 80,704 21,941 47,881 13,573
Registration................................ 1,924 2,200 1,861 3,791 2,310
Shareholder reports and
communications............................. 1,951 2,796 2,152 3,760 3,743
Legal fee................................... 1,391 1,907 1,460 2,651 1,523
Miscellaneous............................... 1,927 2,503 1,856 1,975 2,265
---------- ---------- ----------- ----------- ------------
Total Expenses Before Waiver/
Reimbursement.............................. 137,406 286,324 150,654 229,513 83,764
Waiver/reimbursement of
expenses................................... (4,586) (35,680) (775) (19,578) (14,092)
---------- ---------- ----------- ----------- ------------
Total Expenses After Waiver/
Reimbursement.............................. 132,820 250,644 149,879 209,935 69,672
---------- ---------- ----------- ----------- ------------
Net Investment Income (Loss)................ (36,124) (82,322) (54,880) 3,099,027 420,100
---------- ---------- ----------- ----------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on
investments................................ 1,718,575 961,203 2,982,910 (2,143,090) 779,879
Net realized loss from foreign
currency transactions...................... (54,259) (191,782) (34,676) -- --
Net change in unrealized
appreciation/depreciation
of investments............................. 2,817,010 3,647,161 7,971,407 (1,145,943) (931,859)
Net change in unrealized
appreciation/depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts............. (222,964) (36,178) 10,176 -- --
---------- ---------- ----------- ----------- ------------
Net Gain (Loss) on Investments
and Foreign Currency
Transactions............................... 4,258,362 4,380,404 10,929,817 (3,289,033) (151,980)
---------- ---------- ----------- ----------- ------------
Increase (Decrease) in Net
Assets from Operations..................... $4,222,238 $4,298,082 $10,874,937 $ (190,006) $ 268,120
========== ========== =========== =========== ============
</TABLE>
__________________
* For the period April 30, 1999, commencement of operations, to December 31,
1999.
<TABLE>
<S> <C> <C> <C> <C> <C>
**Net of foreign tax withheld as follows: $5,468 $ 16,994 $ 3,725 $ -- $ 952
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Large-Cap Small-Cap International Large-Cap
Value Value Growth Growth
Portfolio Portfolio Portfolio Portfolio*
---------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.......................................... $ 5,563 $ 1,265 $ 1,531 $ --
Dividends**....................................... 158,322 8,754 105,937 29,997
---------- ---------- ----------- -----------
Total Investment Income........................... 163,885 10,019 107,468 29,997
---------- ---------- ----------- -----------
EXPENSES:
Management fee.................................... 95,391 10,543 43,362 41,087
Auditing fee...................................... 7,797 4,894 6,441 5,968
Directors' fees and expenses...................... 6,694 2,464 4,594 4,628
Custody and related services...................... 41,255 1,527 1,846 1,793
Registration...................................... 1,612 157 331 152
Shareholder reports and
communications................................... 2,059 1,218 1,666 1,538
Legal fee......................................... 1,394 944 1,141 1,061
Miscellaneous..................................... 1,975 1,223 1,635 1,612
---------- ---------- ----------- -----------
Total Expenses Before Waiver/
Reimbursement.................................... 158,177 22,970 61,016 57,839
Waiver/reimbursement of
expenses......................................... (25,594) (12,427) (17,654) (16,752)
---------- ---------- ----------- -----------
Total Expenses After Waiver/
Reimbursement.................................... 132,583 10,543 43,362 41,087
---------- ---------- ----------- -----------
Net Investment Income (Loss)...................... 31,302 (524) 64,106 (11,090)
---------- ---------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on
investments...................................... 1,862,678 (4,755) 54,497 969,509
Net realized loss from foreign
currency transactions............................ (148,777) -- -- --
Net change in unrealized
appreciation/depreciation
of investments................................... 789,435 619,708 (318,566) 68,618
Net change in unrealized
appreciation/depreciation on
translation of assets and liabilities
denominated in foreign currencies
and forward currency contracts................... (285,019) -- -- --
---------- ---------- ----------- -----------
Net Gain (Loss) on Investments
and Foreign Currency
Transactions..................................... 2,218,317 614,953 (264,069) 1,038,127
---------- ---------- ----------- -----------
Increase (Decrease) in Net
Assets from Operations........................... $2,249,619 $ 614,429 $ (199,963) $ 1,027,037
========== ========== =========== ===========
</TABLE>
__________________
* For the period April 30, 1999, commencement of operations, to December 31,
1999.
<TABLE>
<S> <C> <C> <C> <C>
**Net of foreign tax withheld as follows: $ 16,384 $ -- $ -- $ --
</TABLE>
See Notes to Financial Statements.
--P-59--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Bond Portfolio Capital Portfolio Cash Management Portfolio
-------------------------- --------------------------- ---------------------------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
-------------------------- --------------------------- ---------------------------
1999 1998 1999 1998 1999 1998
----------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................ $ 349,655 $ 383,251 $ 7,323 $ 40,438 $ 737,469 $ 540,798
Net realized gain (loss) on investments..... (228,598) 123,784 7,533,936 1,655,402 1,233 1,538
Net realized gain (loss) from foreign
currency transactions...................... -- -- -- -- -- --
Net change in unrealized
appreciation/depreciation of investments... (454,121) 37,175 2,159,898 2,577,044 -- --
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency contracts.. -- -- -- -- -- --
----------- ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
From Operations........................... (333,064) 544,210 9,701,157 4,272,884 738,702 542,336
----------- ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....................... (353,096) (383,617) (8,682) (42,246) (737,469) (540,798)
Realized gain on investments................ -- (72,294) (6,178,894) (1,310,739) -- --
----------- ------------ ------------ ------------ ------------ ------------
Decrease in Net Assets
From Distributions........................ (353,096) (455,911) (6,187,576) (1,352,985) (737,469) (540,798)
----------- ------------ ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares............ 3,696,281 2,476,931 8,798,590 11,707,365 45,713,281 32,521,913
Investment of dividends..................... 353,096 383,617 8,682 42,246 737,469 540,798
Shares issued in payment of gain
distributions............................. -- 72,294 6,178,894 1,310,739 -- --
----------- ------------ ------------ ------------ ------------ ------------
Total....................................... 4,049,377 2,932,842 14,986,166 13,060,350 46,450,750 33,062,711
----------- ------------ ------------ ------------ ------------ ------------
Cost of shares redeemed..................... (5,736,425) (2,932,822) (15,054,648) (12,239,347) (39,360,497) (31,179,640)
----------- ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
From Capital Share Transactions........... (1,687,048) 20 (68,482) 821,003 7,090,253 1,883,071
----------- ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets........... (2,373,208) 88,319 3,445,099 3,740,902 7,091,486 1,884,609
Net Assets:
Beginning of year........................... 7,320,356 7,232,037 24,140,694 20,399,792 10,519,895 8,635,286
----------- ------------ ------------ ------------ ------------ ------------
End of Year................................. $ 4,947,148 $ 7,320,356 $ 27,585,793 $ 24,140,694 $ 17,611,381 $ 10,519,895
=========== ============ ============ ============ ============= ============
</TABLE>
_______________
See Notes to Financial Statements.
--P-60--
<PAGE>
<TABLE>
<CAPTION>
Common Stock Communications and
Portfolio Information Portfolio
--------------------------- ----------------------------
Year Ended December 31, Year Ended December 31,
--------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ 740,840 $ 900,842 $ (733,224) $ (559,960)
Net realized gain (loss) on investments......... 10,832,866 3,819,226 50,179,223 5,762,699
Net realized gain (loss) from foreign
currency transactions.......................... -- -- -- --
Net change in unrealized appreciation/
depreciation of investments.................... (4,409,218) 7,459,005 49,869,648 28,175,377
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency contracts...... -- -- -- --
------------ ------------ ------------ -------------
Increase (Decrease) in Net Assets
From Operations............................... 7,164,488 12,179,073 99,315,647 33,378,116
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income........................... (731,802) (940,040) -- --
Realized gain on investments.................... (9,413,530) (3,824,886) (31,388,512) (4,823,503)
------------ ------------ ------------ -------------
Decrease in Net Assets
From Distributions............................ (10,145,332) (4,764,926) (31,388,512) (4,823,503)
------------ ------------ ------------ -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares................ 18,687,094 14,190,439 58,041,904 199,351,030
Investment of dividends......................... 731,802 940,040 -- --
Shares issued in payment of gain distributions.. 9,413,530 3,824,886 31,388,512 4,823,503
------------ ------------ ------------ -------------
Total........................................... 28,832,426 18,955,365 89,430,416 204,174,533
------------ ------------ ------------ -------------
Cost of shares redeemed......................... (41,136,919) (14,518,617) (65,675,233) (198,083,052)
------------ ------------ ------------ -------------
Increase (Decrease) in Net Assets
From Capital Share Transactions............... (12,304,493) 4,436,748 23,755,183 6,091,481
------------ ------------ ------------ -------------
Increase (Decrease) in Net Assets............... (15,285,337) 11,850,895 91,682,318 34,646,094
Net Assets:
Beginning of year............................... 62,588,058 50,737,163 122,278,931 87,632,837
------------ ------------ ------------ -------------
End of Year..................................... $ 47,302,721 $ 62,588,058 $213,961,249 $ 122,278,931
============ ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Seligman Global Growth
Frontier Portfolio Portfolio
--------------------------- ----------------------------
Year Ended December 31, Year Ended December 31,
--------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ (184,506) $ (218,513) $ (36,124) $ (4,515)
Net realized gain (loss) on investments........ 693,862 (1,118,028) 1,718,575 (276,305)
Net realized gain (loss) from foreign
currency transactions......................... -- -- (54,259) (36,450)
Net change in unrealized appreciation/
depreciation of investments................... 1,462,795 896,484 2,817,010 1,405,297
Net change in unrealized appreciation/
depreciation on translation of assets
and liabilities denominated in foreign
currencies and forward currency contracts..... -- -- (222,964) 239,832
------------ ------------- ------------ -------------
Increase (Decrease) in Net Assets
From Operations.............................. 1,972,151 (440,057) 4,222,238 1,327,859
------------ ------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.......................... -- -- -- --
Realized gain on investments................... -- -- (1,134,348) (50,935)
------------ ------------- ------------ -------------
Decrease in Net Assets
From Distributions........................... -- -- (1,134,348) (50,935)
------------ ------------- ------------ -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares............... 23,520,563 227,067,285 3,291,118 4,808,045
Investment of dividends........................ -- -- -- --
Shares issued in payment of
gain distributions............................ -- -- 1,134,348 50,935
------------ ------------- ------------ -------------
Total.......................................... 23,520,563 227,067,285 4,425,466 4,858,980
------------ ------------- ------------ -------------
Cost of shares redeemed........................ (38,934,551) (230,452,830) (4,267,898) (2,941,841)
------------ ------------- ------------ -------------
Increase (Decrease) in Net Assets
From Capital Share Transactions.............. (15,413,988) (3,385,545) 157,568 1,917,139
------------ ------------- ------------ -------------
Increase (Decrease) in Net Assets.............. (13,441,837) (3,825,602) 3,245,458 3,194,063
Net Assets:
Beginning of year.............................. 39,147,671 42,973,273 8,643,295 5,449,232
------------ ------------- ------------ -------------
End of Year.................................... $ 25,705,834 $ 39,147,671 $ 11,888,753 $ 8,643,295
============ ============= ============ =============
</TABLE>
--P-61--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Seligman Seligman Seligman
Global Smaller Global Technology High-Yield Bond
Companies Portfolio Portfolio Portfolio
------------------- --------- ---------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
---------------------- ---------------------- ----------------------
1999 1998 1999 1998 1999 1998
----------- ------------ ----------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......... $ (82,322) $ (13,328) $ (54,880) $ (21,045) $ 3,099,027 $ 2,731,048
Net realized gain on investments..... 961,203 380,866 2,982,910 327,368 (2,143,090) 10,307
Net realized gain (loss) from foreign
currency transactions............... (191,782) (343,427) (34,676) 1,871 -- --
Net change in unrealized
appreciation/
depreciation of investments......... 3,647,161 442,586 7,971,407 1,121,131 (1,145,943) (2,638,907)
Net change in unrealized
appreciation/ depreciation on
translation of assets and
liabilities denominated in
foreign currencies and forward
currency contracts................. (36,178) 782,308 10,176 73,954 -- --
----------- ----------- ----------- ------------ ------------ -----------
Increase (Decrease) in Net Assets
From Operations.................... 4,298,082 1,249,005 10,874,937 1,503,279 (190,006) 102,448
----------- ----------- ----------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income................ -- -- -- (857) (3,116,594) (2,720,490)
Realized gain on investments......... -- (307,092) (1,874,628) (262,609) -- (17,156)
----------- ----------- ----------- ------------ ------------ -----------
Decrease in Net Assets
From Distributions................. -- (307,092) (1,874,628) (263,466) (3,116,594) (2,737,646)
----------- ----------- ----------- ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares..... 2,425,180 3,255,307 22,424,095 4,355,443 15,071,625 17,539,019
Investment of dividends.............. -- -- -- 857 3,116,594 2,720,490
Shares issued in payment of
gain distributions.................. -- 307,092 1,874,628 262,609 -- 17,156
----------- ----------- ----------- ------------ ------------ -----------
Total................................ 2,425,180 3,562,399 24,298,723 4,618,909 18,188,219 20,276,665
----------- ----------- ----------- ------------ ------------ -----------
Cost of shares
repurchased......................... (7,968,678) (4,194,840) (17,341,656) (3,414,979) (20,242,419) (8,656,439)
----------- ----------- ----------- ------------ ------------ -----------
Increase (Decrease) in Net Assets
From Capital Share
Transactions...................... (5,543,498) (632,441) 6,957,067 1,203,930 (2,054,200) 11,620,226
----------- ----------- ----------- ------------ ------------ -----------
Increase (Decrease) in Net
Assets.............................. (1,245,416) 309,472 15,957,376 2,443,743 (5,360,800) 8,985,028
Net Assets:
Beginning of
period.............................. 20,814,062 20,504,590 6,129,971 3,686,228 32,252,808 23,267,780
----------- ----------- ----------- ------------ ------------ -----------
End of
Period............................. $19,568,646 $20,814,062 $22,087,347 $ 6,129,971 $ 26,892,008 $32,252,808
=========== =========== =========== =========== ============ ===========
</TABLE>
________________
* Commencement of operations.
See Notes to Financial Statements.
--P-62--
<PAGE>
<TABLE>
<CAPTION>
Seligman International Growth Portfolio Seligman Income Portfolio
--------------------------------------- -------------------------------
Year Ended December 31, Year Ended December 31,
--------------------------------------- -------------------------------
1999 1998 1999 1998
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................. $ 420,100 $ 565,319 $ 31,302 $ 51,629
Net realized gain on investments.............. 779,879 124,492 1,862,678 236,433
Net realized gain (loss) from foreign
currency transactions........................ -- -- (148,777) (62,257)
Net change in unrealized appreciation/
depreciation of investments......... (931,859) 381,475 789,435 749,881
Net change in unrealized appreciation/
depreciation on translation of
assets and liabilities denominated in
foreign currencies and forward currency
contracts.................................... -- -- (285,019) 412,820
----------- ----------- ------------ -----------
Increase (Decrease) in Net Assets
From Operations............................. 268,120 1,071,286 2,249,619 1,388,506
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income......................... (413,971) (579,531 -- (92,510)
Realized gain on investments.................. (691,269) (200,703 (1,396,893) (102,080)
------------ ----------- ------------ -----------
Decrease in Net Assets
From Distributions.......................... (1,105,240) (780,234 (1,396,893) (194,590)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares.............. 1,887,360 2,781,692 1,464,332 1,772,992
Investment of dividends....................... 413,971 579,531 -- 92,510
Shares issued in payment of
gain distributions........................... 691,269 200,703 1,396,893 102,080
----------- ----------- ----------- -----------
Total......................................... 2,992,600 3,561,926 2,861,225 1,967,582
----------- ----------- ----------- -----------
Cost of shares repurchased.................... (8,143,191) (3,106,033 (3,358,291) (2,451,134)
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
From Capital Share Transactions............. (5,150,591) 455,893 (497,066) (483,552)
----------- ----------- -----------
Increase (Decrease) in Net Assets............. (5,987,711) 746,945 355,660 710,364
Net Assets:
Beginning of period........................... 14,582,225 13,835,280 9,892,829 9,182,465
----------- ----------- ----------- -----------
End of Period.................................. $ 8,594,514 $14,582,225 $10,248,489 $ 9,892,829
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Seligman
Large-Cap Seligman Seligman
Growth Large-Cap Small-Cap
Portfolio Value Portfolio Value Portfolio
----------- --------------- ---------------
5/1/99* Year 5/1/98* Year 5/1/98*
to Ended to Ended to
12/31/99 12/31/99 12/31/98 12/31/99 12/31/98
----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ (524) $ 64,106 $ 12,694 $ (11,090) $ (2,716)
Net realized gain on investments................ (4,755) 54,497 67,875 969,509 271,788
Net realized gain (loss) from foreign
currency transactions.......................... -- -- -- -- --
Net change in unrealized appreciation/
depreciation of investments......... 619,708 (318,566) 108,540 68,618 (164,337)
Net change in unrealized
appreciation/ depreciation on translation of
assets and liabilities denominated in
foreign currencies and forward currency
contracts...................................... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
From Operations............................... 614,429 (199,963) 189,109 1,027,037 104,735
------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income........................... -- (67,324) (13,586) -- --
Realized gain on investments.................... -- -- (101,893) (785,429) (270,486)
------------ ----------- ----------- ----------- -----------
Decrease in Net Assets
From Distributions............................ -- (67,324) (115,479) (785,429) (270,486)
------------ ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares................ 2,683,558 4,766,032 4,577,607 3,118,001 3,140,726
Investment of dividends......................... -- 67,324 13,586 -- --
Shares issued in payment of
gain distributions............................. -- -- 101,893 785,429 270,486
------------ ----------- ----------- ----------- -----------
Total........................................... 2,683,558 4,833,356 4,693,086 3,903,430 3,411,212
----------- ----------- ----------- ----------- -----------
Cost of shares repurchased...................... (172,873) (2,654,012) (1,068,342) (2,210,601) (923,979)
------------ ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
From Capital Share Transactions............... 2,510,685 2,179,344 3,624,744 1,692,829 2,487,233
------------ ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets............... 3,125,114 1,912,057 3,698,374 1,934,437 2,321,482
Net Assets:
Beginning of period............................. 543,260 3,845,823 147,449 2,468,931 147,449
------------ ----------- ----------- ----------- -----------
End of Period................................... $ 3,668,374 $ 5,757,880 $ 3,845,823 $ 4,403,368 $ 2,468,931
============ =========== =========== =========== ===========
</TABLE>
--P-63--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Notes to Financial Statements
- -------------------------------------------------------------------------------
1. Organization -- Seligman Portfolios, Inc. (the "Fund") is an open-end
diversified management investment company consisting of 15 separate portfolios
(the Portfolios): Seligman Bond Portfolio ("Bond Portfolio"), Seligman Capital
Portfolio ("Capital Portfolio"), Seligman Cash Management Portfolio ("Cash
Management Portfolio"), Seligman Common Stock Portfolio ("Common Stock
Portfolio"), Seligman Communications and Information Portfolio ("Communications
and Information Portfolio"), Seligman Frontier Portfolio ("Frontier Portfolio"),
Seligman Global Growth Portfolio, formerly Seligman Henderson Global Growth
Opportunities Portfolio ("Global Growth Portfolio"), Seligman Global Smaller
Companies Portfolio, formerly Seligman Henderson Global Smaller Companies
Portfolio ("Global Smaller Companies Portfolio"),Seligman Global Technology
Portfolio, formerly Seligman Henderson Global Technology Portfolio ("Global
Technology Portfolio"), Seligman High-Yield Bond Portfolio ("High-Yield Bond
Portfolio"), Seligman Income Portfolio ("Income Portfolio"), Seligman
International Growth Portfolio, formerly Seligman Henderson International
Portfolio ("International Growth Portfolio"), Seligman Large-Cap Growth
Portfolio ("Large-Cap Growth Portfolio"), Seligman Large-Cap Value Portfolio
("Large-Cap Value Portfolio"), and Seligman Small-Cap Value Portfolio
("Small-Cap Value Portfolio"), each designed to meet different investment goals.
Shares of the Fund are provided as the investment medium for Canada Life of
America Variable Annuity Account 2 ("CLVA-2"), which has been offered by Canada
Life Insurance Company of America ("CLICA"), Canada Life of New York Variable
Annuity Account 2 ("CLNYVA-2"), which has been offered by Canada Life Insurance
Company of New York ("CLNY"), and Canada Life of America Annuity Account 3
("CLVA-3"), which has been offered by CLICA. CLVA-2 and CLNYVA-2 are registered
as unit investment trusts under the Investment Company Act of 1940, as amended
(the "1940 Act") and fund variable annuity contracts (the "CLVA-2 Contracts")
issued by CLICA and CLNY. CLVA-3 is not registered or regulated as a unit
investment trust under the 1940 Act in reliance on the exemption provided in
Section 3(c)(11) of the 1940 Act, and funds variable annuity contracts (the
"CLVA-3 Contracts") issued by CLICA. Effective January 1, 2000, CLICA and CLNY,
as the case may be, stopped offering new CLVA-2, CLNYVA-2 and CLVA-3 Contracts.
However, existing Contract holders will be able to continue to acquire shares of
the Fund. Additionally, on and after January 1, 2000, shares of the Fund will
continue to be provided as the investment medium for other variable annuity
separate accounts established and offered by CLICA or its affiliates ("Canada
Life Separate Accounts") and will be offered as the investment medium for
variable annuity separate accounts established and offered by other insurance
companies not affiliated with CLICA. Prior to June 30, 1999, shares of Bond,
Capital, Cash Management, Common Stock, and Income Portfolios were provided as
the investment medium for Seligman Mutual Benefit Plan (the "Mutual Benefit
Plan"), a separate account of MBL Life Assurance Corporation ("MBL Life").
2. Significant Accounting Policies -- The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Fund:
a. Security Valuation --Investments in US Government and Government Agency
securities, bonds, convertible securities, and stocks are valued at the most
current market values or, in their absence, at fair market values determined
in accordance with procedures approved by the Board of Directors. Securities
traded on an exchange are valued at the last sales price or, in its absence
and in the case of over-the-counter securities, at the mean of closing bid
and asked prices. Short-term holdings maturing in 60 days or less are valued
at amortized cost. Investments held by Cash Management Portfolio are
generally valued using the amortized cost method which approximates fair
value. Investments of certain other funds in the Seligman Group of Investment
Companies purchased to offset the Cash Management Portfolio's liability for
deferred directors' fees are valued at current market values. b. Foreign
Securities -- The Portfolios may invest up to 10% of their total assets in
foreign securities (except Global Growth Portfolio, Global Smaller Companies
Portfolio, Global Technology Portfolio, and International Growth Portfolio,
(together, the "Seligman International Portfolios"), which may invest up to
100% of their total assets in foreign securities). Investments in foreign
securities will usually be denominated in foreign currencies, and the
Portfolios may temporarily hold funds in foreign currencies. The Portfolios
may also invest in US dollar-denominated American Depositary Receipts
("ADRs"), American Depositary Shares ("ADSs"), European Depositary Receipts
("EDRs"), Global Depositary Receipts ("GDRs"), and Global Depositary Shares
("GDSs"). ADRs and ADSs are issued by domestic banks or trust companies and
evidence ownership of securities issued by foreign corporations. ADRs and
ADSs are traded on United States exchanges or over-the-counter and are not
included in the 10% limitation. EDRs, GDRs, and GDSs are receipts similar to
ADRs and ADSs and are typically issued by foreign banks or trust companies
and traded in Europe. The books and records of the Portfolios 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 net asset values per share of Portfolios which invest in securities
denominated in foreign currencies 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, to be dis-
--P-64--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
tributed to shareholders of the Portfolios. 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 or 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 from the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Portfolios'
books, and the US dollar equivalent 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 Portfolios separate 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 portfolios. Similarly,
the Portfolios separate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio securities
sold during the period.
c. Forward Currency Contracts -- The Seligman International Portfolios may
enter into forward currency contracts in order to hedge their exposure to
changes in foreign currency exchange rates on their foreign portfolio holdings,
or other amounts receivable or payable in foreign currency. A forward contract
is a commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. Certain risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts. The contracts are valued daily at current exchange rates and
any unrealized gain or loss is included in net unrealized appreciation or
depreciation on translation of assets and liabilities denominated in foreign
currencies and forward currency contracts. The gain or loss, if any, arising
from the difference between the settlement value of the forward contract and the
closing of such contract, is included in net realized gain or loss from foreign
currency transactions. For federal income tax purposes, certain open forward
currency contracts are treated as sold during the fiscal year and any gains or
losses are recognized immediately. As a result, the amount of income
distributable to shareholders may vary from the amount recognized for financial
statement purposes.
d. Federal Taxes -- The Portfolios' policy is to comply with the
requirements of the Internal Revenue Code applicable to Regulated Investment
Companies and to distribute substantially all of their taxable net income and
net gain realized to shareholders. Therefore, no provisions for Federal income
or excise taxes are required.
e. Security Transactions and Related Investment Income --Investment
transactions are recorded on trade dates. Interest income is recorded on the
accrual basis. The Portfolios amortize market discounts and premiums on
purchases of portfolio securities. 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 dividend.
f. Repurchase Agreements --The Portfolios may enter into repurchase
agreements with commercial banks and with broker/dealers deemed to be
creditworthy by J. & W. Seligman & Co. Incorporated (the "Manager"). Securities
purchased subject to repurchase agreements are deposited with the Portfolios'
custodians and, pursuant to the terms of the repurchase agreements, must have an
aggregate market value greater than or equal to the repurchase price, plus
accrued interest, at all times. Procedures have been established to monitor, on
a daily basis, the market value of the repurchase agreements' underlying
securities to ensure the existence of the proper level of collateral.
g. Expense Allocations -- Expenses directly attributable to each Portfolio
are charged to such Portfolio, and expenses that are applicable to more than one
Portfolio are allocated among them.
h. Distributions to Shareholders -- The treatment for financial statement
purposes of distributions made during the year from net investment income or net
realized gains may differ from their ultimate treatment for federal income tax
purposes. These differences primarily are caused by differences in the timing of
the recognition of certain components of income, expense or capital gain and the
recharacterization of foreign exchange gains or losses to either ordinary income
or realized capital gain 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 reclassification will have no effect on net assets, results of operations,
or net asset values the year ended December 31, 1999, were as follows:
Portfolio Purchases Sales
------------ ------------
Bond $ 2,752,375 $ 2,716,199
Capital 35,890,837 42,495,567
Common Stock 20,079,705 37,108,873
Communications and Information 163,592,271 180,811,782
Frontier 15,604,502 29,879,044
--P-65--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- -----------------------------------------------------------------------
Portfolio Purchases Sales
--------- ------------ ------------
Global Growth $ 5,762,433 $ 6,474,971
Global Smaller Companies 8,239,201 13,971,478
Global Technology 16,358,667 11,462,371
High-Yield Bond 16,072,853 17,136,244
Income 8,348,690 11,333,739
International Growth 7,380,369 9,371,996
Large-Cap Growth 3,806,111 1,208,876
Large-Cap Value 3,606,874 1,457,875
Small-Cap Value 4,532,884 3,631,914
For the year ended December 31, 1999, purchases and sales of US Government
obligations were $983,201 and $2,335,283, respectively, for the Bond Portfolio,
and $263,731 and $2,806,978, respectively, for the Income Portfolio.
Identified cost of investments sold is used for both financial statement
and federal income tax purposes.
At December 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. The tax basis gross unrealized appreciation and depreciation of
portfolio securities, including the effects of foreign currency transactions,
were as follows:
Unrealized Unrealized
Portfolio Appreciation Depreciation
--------- ------------ ------------
Bond $ 978 $ 195,967
Capital 9,126,475 405,275
Common Stock 12,650,728 1,347,682
Communications and Information 76,209,557 3,890,611
Frontier 7,813,118 2,413,985
Global Growth 4,887,428 350,978
Global Smaller Companies 6,818,792 1,531,636
Global Technology 9,321,142 199,682
High-Yield Bond 578,944 3,527,842
Income 797,772 514,503
International Growth 2,884,154 363,039
Large-Cap Growth 665,218 45,510
Large-Cap Value 583,020 793,046
Small-Cap Value 755,858 851,577
4. Management Fee, Administrative Services, and Other Transactions -- The
Manager manages the affairs of the Fund and provides or arranges for the
necessary personnel and facilities. The Manager's fee, which is calculated daily
and payable monthly, is equal to 0.40%, on an annual basis, of each of Bond,
Capital, Cash Management, Common Stock, and Income Portfolios' daily net assets;
equal to 0.75%, on an annual basis, of each of Communications and Information
and Frontier Portfolios' daily net assets; equal to 1.00%, on an annual basis,
of each of the Seligman International Portfolios' daily net assets; and equal to
0.50%, on an annual basis, of High-Yield Bond Portfolio's daily net assets. The
Manager's fee for the Large-Cap Growth Portfolio is equal to 0.70% per annum of
the first $1 billion of average daily net assets, 0.65% per annum of the next $1
billion, and 0.60% per annum in excess of $2 billion of average daily net assets
of the Portfolio. The Manager's fee for the Large-Cap Value Portfolio is equal
to 0.80% per annum of the first $500 million of average daily net assets, 0.70%
per annum of the next $500 million of average daily net assets, and 0.60% per
annum in excess of $1 billion of average daily net assets of the Portfolio. The
Manager's fee for the Small-Cap Value Portfolio is equal to 1.00% per annum of
the first $500 million of average daily net assets, 0.90% per annum of the next
$500 million of average daily net assets, and 0.80% per annum in excess of $1
billion of average daily net assets of the Portfolio.
Effective July 1, 1998, Henderson Investment Management Limited (the
"Subadviser") became adviser to the Seligman International Portfolios
responsible for furnishing investment advice, research, and assistance with
respect to their non-US investments. Under the subadvisory agreement, the
Manager pays the Subadviser a subadvisory fee for each of the Seligman
International Portfolios at a rate of 0.50% per annum of the average monthly
assets under the Subadviser's supervision. 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.
--P-66--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
On January 21, 2000, pursuant to authorization from the Fund's Board of
Directors, the Manager gave notice to the Subadviser of its termination,
effective as of the close of business on March 31, 2000, of the subadvisory
agreement between the Manager and the Subadviser in respect of Seligman Global
Growth Portfolio, Seligman Global Technology Portfolio, and Seligman
International Growth Portfolio (the "Global Portfolios"). During the notice
period, the Subadviser will continue to provide the Global Portfolios with
investment advice, research and assistance with respect to their non-US
investments, subject to the Manager's overall supervision. Following the close
of business on March 31, 2000, the Manager will assume full responsibility for
the non-US investments of the Global Portfolios. The Subadviser will continue to
act as subadviser with respect to Seligman Global Smaller Companies Portfolio.
The Manager has agreed to reimburse expenses, other than the management
fee, that exceed 0.20% per annum of the average daily net assets of each of
Bond, Capital, Common Stock, Communications and Information, Frontier, High-
Yield Bond and Income Portfolios. The Manager, at its discretion and until it
determines otherwise, has elected to waive all of its fee for, and reimburse all
of the expenses of, the Cash Management Portfolio. The Manager has agreed to
reimburse expenses, other than the management fee, which exceed 0.40% per annum
of the average daily net assets of each of the Seligman International
Portfolios. The Manager, at its discretion, has also agreed to reimburse all
expenses, other than the management fees, of the Large-Cap Growth, Large-Cap
Value and Small-Cap Value Portfolios. The amounts of these reimbursements for
the year ended December 31, 1999 are disclosed in the Statements of Operations.
Compensation of all officers of the Fund, all directors of the Fund who are
employees or consultants of the Manager, and all personnel of the Fund and the
Manager is paid by the Manager or by the Subadviser.
Seligman Advisors, Inc., agent for the distribution of the CLVA-2 Contracts
and an affiliate of the Manager, received concessions of $155,856 from Canada
Life Insurance Company of America and $9,591 from Canada Life Insurance Company
of New York, after commissions paid to dealers for the sale of shares of the
Fund.
Certain officers and directors of the Fund are officers or directors of the
Manager and the Distributor.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of the
other funds in the Seligman Group of Investment Companies. The cost of such fees
and earnings accrued thereon is included in directors' fees and expenses, and
the accumulated balances thereof at December 31, 1999, are included in other
liabilities. Deferred fees and related accrued earnings are not deductible for
federal income tax purposes until such amounts are paid.
5. Capital Loss Carryforward -- At December 31, 1999, the Bond Portfolio,
Frontier Portfolio, High-Yield Bond Portfolio, and Large-Cap Growth Portfolio
had net capital loss carryforwards for federal income tax purposes of $212,775,
$428,834, $1,594,792, and $1,091, respectively, which are available for offset
against future taxable net capital gains. These net capital loss carryforwards
will expire in 2007. Accordingly, no capital gain distributions are expected to
be paid to shareholders until net capital gains have been realized in excess of
the available capital loss carryforwards.
6. Outstanding Forward Exchange Currency Contracts -- At December 31, 1999, the
Fund had outstanding forward exchange currency contracts to purchase or sell
foreign currencies as follows:
<TABLE>
<S> <C> <C> <C> <C> <C>
<CAPTION>
Foreign In Exchange Settlement US $
Unrealized
Contract Currency for US$ Date Value Depreciation
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GLOBAL GROWTH PORTFOLIO
Sales:
Japanese yen 24,000,000 230,349 2/14/2000 236,500 $(6,151)
========== ======== ========== ======= ========
GLOBAL SMALLER COMPANIES PORTFOLIO
Sales:
Japanese yen 38,000,000 364,718 2/14/2000 374,458 $(9,740)
========== ======== ========== ======= ========
GLOBAL TECHNOLOGY PORTFOLIO
Sales:
Japanese yen 25,000,000 243,712 1/19/2000 245,290 $(1,578)
========== ======== ========== ======= ========
INTERNATIONAL GROWTH PORTFOLIO
Sales:
Japanese yen 27,000,000 259,142 2/14/2000 266,062 $(6,920)
========== ======== ========== ======= ========
</TABLE>
--P-67--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- -------------------------------------------------------------------------------
7. Capital Stock Transactions -- At December 31, 1999, there were 20,000,000
shares of Capital Stock authorized for each of Global Growth, Global Technology,
Large-Cap Growth, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000
shares for each of Bond, Capital, Global Smaller Companies, International
Growth, and Income Portfolios; and 100,000,000 shares for each of Cash
Management, Common Stock, Communications and Information, Frontier, and High-
Yield Bond Portfolios, all at a par value of $0.001 per share.
Transactions in shares of Capital Stock were as follows:
<TABLE>
<CAPTION>
Bond Capital Cash Management
Portfolio Portfolio Portfolio
------------------------- ------------------------- -------------------------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
------------------------- ------------------------- -------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares............................. 368,413 230,745 401,662 626,516 45,713,281 32,521,913
Shares issued in payment of dividends...... 37,845 36,957 408 2,179 737,469 540,798
Shares issued in payment of gain
distributions............................ -- 6,965 290,498 67,599 -- --
----------- ----------- ----------- ----------- ------------ ------------
Total...................................... 406,258 274,667 692,568 696,294 46,450,750 33,062,711
----------- ----------- ----------- ----------- ------------ ------------
Shares redeemed............................ (577,822) (276,064) (698,555) (663,507) (39,360,497) (31,179,640)
----------- ----------- ----------- ----------- ------------ ------------
Increase (decrease) in shares.............. (171,564) (1,397) (5,987) 32,787 7,090,253 1,883,071
=========== =========== =========== =========== ============ ============
<CAPTION>
Communications
Common Stock and Information Frontier
Portfolio Portfolio Portfolio
------------------------- ------------------------- -------------------------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
------------------------- ------------------------- -------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares............................. 960,847 787,642 2,745,361 13,848,034 1,649,550 14,693,247
Shares issued in payment of dividends...... 45,089 51,651 -- -- -- --
Shares issued in payment of gain
distributions............................ 580,008 210,158 1,287,998 299,597 -- --
----------- ----------- ----------- ------------ ----------- ------------
Total...................................... 1,585,944 1,049,451 4,033,359 14,147,631 1,649,550 14,693,247
----------- ----------- ----------- ------------ ----------- ------------
Shares redeemed............................ (2,098,043) (806,174) (3,152,170) (13,711,324) (2,748,676) (14,899,641)
----------- ----------- ----------- ------------ ----------- ------------
Increase (decrease) in shares.............. (512,099) 243,277 881,189 436,307 (1,099,126) (206,394)
=========== =========== =========== ============ =========== ============
<CAPTION>
Global Smaller Global
Global Growth Companies Technology
Portfolio Portfolio Portfolio
------------------------- ------------------------- -------------------------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
------------------------- ------------------------- -------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares............................. 217,292 390,170 174,796 231,087 1,185,726 354,582
Shares issued in payment of dividends...... -- -- -- -- -- 64
Shares issued in payment of gain
distributions............................ 68,170 3,970 -- 23,787 77,240 19,642
Total...................................... 285,462 394,140 174,796 254,874 1,262,966 374,288
----------- ----------- ----------- ------------ ----------- ------------
Shares redeemed............................ (281,349) (239,884) (583,501) (306,840) (899,796) (280,044)
----------- ----------- ----------- ------------ ----------- ------------
Increase (decrease) in shares.............. 4,113 154,256 (408,705) (51,966) 363,170 94,244
=========== =========== =========== ============ =========== ============
</TABLE>
--P-68--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
High-Yield Bond Income International Growth
Portfolio Portfolio Portfolio
------------------------- ------------------------- -------------------------
Year Ended December 31, Year Ended December 31, Year Ended December 31,
------------------------- ------------------------- -------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sale of shares............................. 1,398,390 1,464,357 175,401 248,332 89,554 118,684
Shares issued in payment of dividends...... 325,663 251,200 42,285 53,119 -- 6,127
Shares issued in payment of gain
distributions............................ -- 1,584 70,610 18,396 89,832 6,760
----------- ----------- ----------- ------------ ----------- ------------
Total...................................... 1,724,053 1,717,141 288,296 319,847 179,386 131,571
----------- ----------- ----------- ------------ ----------- ------------
Shares redeemed............................ (1,887,102) (711,853) (745,147) (276,496) (206,695) (166,031)
----------- ----------- ----------- ------------ ----------- ------------
Increase (decrease) in shares.............. (163,049) 1,005,288 (456,851) 43,351 (27,309) (34,460)
=========== =========== =========== ============ =========== ============
<CAPTION>
Large-Cap
Growth Large-Cap Value Small-Cap Value
Portfolio Portfolio Portfolio
--------- -------------------------- -------------------------
5/1/99* Year 5/1/98* Year 5/1/98*
to Ended to Ended to
12/31/99 12/31/99 12/31/98 12/31/99 12/31/98
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Sale of shares............................. 263,099 486,900 485,276 351,392 400,968
Shares issued in payment of dividends...... -- 7,447 1,442 -- --
Shares issued in payment of gain
distributions............................ -- -- 10,817 104,031 39,088
---------- ---------- ---------- ---------- ----------
Total...................................... 263,099 494,347 497,535 455,423 440,056
---------- ---------- ---------- ---------- ----------
Shares redeemed............................ (15,699) (271,884) (114,112) (247,838) (117,123)
---------- ---------- ---------- ---------- ----------
Increase in shares......................... 247,400 222,463 383,423 207,585 322,933
========== ========== ========== ========== ==========
</TABLE>
______________
* Commencement of operations.
8. Committed Line of Credit -- All of the Portfolios, except the Cash
Management Portfolio, are participants in a joint $750 million committed line of
credit that is shared by substantially all funds in the Seligman Group of
Investment Companies. Each Portfolio's borrowings are limited to 10% (5% for the
Seligman International Portfolios) 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 Portfolio 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. For the year
ended December 31, 1999, none of the Portfolios had borrowed from the credit
facility.
9. Seligman Mutual Benefit Plan -- On December 31, 1998, MBLLife sold
substantially all of its general account life insurance and annuity businesses
to SunAmerica, Inc. The Order from the Superior Court of New Jersey (the
"Order") approving the transaction provided for the termination of the Mutual
Benefit Plan. The Order authorized MBL Life to take any and all actions
necessary to facilitate the termination of the Mutual Benefit Plan.
Contractholders were given the opportunity to exchange their contracts for
contracts issued by other insurance companies until June 30, 1999. At June 30,
1999, there were no remaining contracts.
--P-69--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
The tables below are intended to help you understand each Portfolio's
financial performance for the past five years or from its inception, if less
than five years. Certain information reflects financial results for a single
share that was held throughout the periods shown. Per share amounts are
calculated using average shares outstanding. "Total return" shows the rate that
you would have earned (or lost) on an investment in each Portfolio, assuming you
reinvested all your dividends and capital gain distributions. Total returns do
not reflect any administrative fees and asset based sales charges that are
associated with variable annuity contracts, and are not annualized for periods
of less than one year.
<TABLE>
<CAPTION>
Bond Portfolio
Year Ended December 31,
-----------------------------------------------------
1999 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Year............................ $ 10.38 $10.24 $ 9.89 $ 10.44 $ 9.27
------- ------ ------- ------- -------
Income from Investment Operations:
Net investment income......................................... 0.64 0.59 0.54 0.56 0.61
Net realized and unrealized gain (loss)
on investments............................................... (1.10) 0.25 0.35 (0.55) 1.17
------- ------ ------- ------- -------
Total from Investment Operations.............................. (0.46) 0.84 0.89 0.01 1.78
------- ------ ------- ------- -------
Less Distributions:
Dividends from net investment income.......................... (0.65) (0.59) (0.54) (0.56) (0.61)
Distributions from net realized capital gain.................. -- (0.11) -- -- --
------- ------ ------- ------- -------
Total Distributions........................................... (0.65) (0.70) (0.54) (0.56) (0.61)
------- ------ ------- ------- -------
Net Asset Value, End of Year.................................. $ 9.27 $10.38 $ 10.24 $ 9.89 $ 10.44
======= ====== ======= ======= =======
TOTAL RETURN: (4.48)% 8.20% 8.98% 0.09% 19.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)........................ $ 4,947 $7,320 $ 7,232 $ 5,015 $ 4,497
Ratio of expenses to average net assets....................... 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net income to average net assets..................... 5.56% 5.58% 6.22% 5.97% 6.22%
Portfolio turnover rate....................................... 64.22% 73.31% 170.12% 199.74% 114.42%
Without management fee waiver:*
Ratio of expenses to average net assets....................... 0.71% 0.82% 0.83% 0.79% 0.99%
Ratio of net income to average net assets..................... 5.45% 5.36% 5.99% 5.78% 5.83%
</TABLE>
- ------------------
* The Manager, at its discretion, reimbursed expenses and/or waived management
fees for certain periods presented.
See Notes to Financial Statements.
--P-70--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Portfolio
-----------------
Year Ended December 31,
----------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year............................ $ 20.81 $ 18.10 $ 16.01 $ 14.91 $ 12.70
------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income......................................... 0.01 0.04 0.03 0.04 0.05
Net realized and unrealized gain (loss)
on investments............................................... 10.21 3.89 3.35 2.12 3.39
------- ------- ------- ------- -------
Total from Investment Operations.............................. 10.22 3.93 3.38 2.16 3.44
------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment income.......................... (0.01) (0.04) (0.03) (0.04) (0.05)
Distributions from net realized capital gain.................. (7.12) (1.18) (1.26) (1.02) (1.18)
------- ------- ------- ------- -------
Total Distributions........................................... (7.13) (1.22) (1.29) (1.06) (1.23)
------- ------- ------- ------- -------
Net Asset Value, End of Year.................................. $ 23.90 $ 20.81 $ 18.10 $ 16.01 $ 14.91
======= ======= ======= ======= =======
TOTAL RETURN: 53.35% 22.19% 21.31% 14.51% 27.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)........................ $27,586 $24,141 $20,400 $14,313 $ 9,294
Ratio of expenses to average net assets....................... 0.59% 0.60% 0.60% 0.59% 0.60%
Ratio of net income to average net assets..................... 0.03% 0.19% 0.16% 0.29% 0.32%
Portfolio turnover rate....................................... 172.88% 130.86% 93.97% 88.78% 122.20%
Without management fee waiver:*
Ratio of expenses to average net assets....................... 0.62% 0.71%
Ratio of net income to average net assets..................... 0.14% 0.21%
</TABLE>
<TABLE>
<CAPTION>
Cash Management Portfolio
-------------------------
Year Ended December 31,
-----------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income......................................... 0.050 0.053 0.054 0.053 0.055
------- ------- ------- ------- -------
Total from Investment Operations.............................. 0.050 0.053 0.054 0.053 0.055
------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment income.......................... (0.050) (0.053) (0.054) (0.053) (0.055)
------- ------- ------- ------- -------
Total Distributions........................................... (0.050) (0.053) (0.054) (0.053) (0.055)
------- ------- ------- ------- -------
Net Asset Value, End of Year.................................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
TOTAL RETURN: 5.07% 5.42% 5.52% 5.43% 5.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)........................ $17,611 $10,520 $ 8,635 $ 9,755 $ 7,800
Ratio of expenses to average net assets....................... -- -- -- -- --
Ratio of net income to average net assets..................... 4.99% 5.30% 5.39% 5.30% 5.48%
Without management fee waiver and
expense reimbursement:*
Ratio of expenses to average net assets....................... 0.65% 0.67% 0.79% 0.63% 0.87%
Ratio of net income to average net assets..................... 4.34% 4.63% 4.60% 4.67% 4.61%
</TABLE>
- -----------------
* The Manager, at its discretion, reimbursed expenses and/or waived management
fees for certain periods presented.
See Notes to Financial Statements.
--P-71--
<PAGE>
Seligman Portfolios, Inc.
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
Common Stock Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year................. $ 18.63 $ 16.28 $ 15.92 $ 15.44 $ 13.78
-------- -------- ------- ------- -------
Income from Investment Operations:
Net investment income.............................. 0.32 0.29 0.33 0.34 0.35
Net realized and unrealized gain (loss)
on investments.................................... 2.03 3.61 3.01 2.79 3.40
-------- -------- ------- ------- -------
Total from Investment Operations................... 2.35 3.90 3.34 3.13 3.75
-------- -------- ------- ------- -------
Less Distributions:
Dividends from net investment income............... (0.32) (0.31) (0.32) (0.34) (0.35)
Distributions from net realized capital gain....... (4.05) (1.24) (2.66) (2.31) (1.74)
-------- -------- ------- ------- -------
Total Distributions................................ (4.37) (1.55) (2.98) (2.65) (2.09)
-------- -------- ------- ------- -------
Net Asset Value, End of Year....................... $ 16.61 $ 18.63 $ 16.28 $ 15.92 $ 15.44
======== ======== ======= ======= =======
TOTAL RETURN: 13.15% 24.16% 21.31% 20.08% 27.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)............. $ 47,303 $ 62,588 $50,737 $37,168 $28,836
Ratio of expenses to average net assets............ 0.52% 0.52% 0.53% 0.53% 0.54%
Ratio of net income to average net assets.......... 1.30% 1.61% 1.92% 1.99% 2.42%
Portfolio turnover rate............................ 38.11% 55.55% 80.13% 50.33% 55.48%
</TABLE>
- --------------------------------------------------------------------------------
Communications and Information Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year................. $ 17.14 $ 13.09 $ 14.69 $ 13.50 $ 10.44
-------- -------- ------- ------- -------
Income from Investment Operations:
Net investment income (loss)....................... (0.00) (0.08) (0.08) (0.04) (0.13)
Net realized and unrealized gain
on investments.................................... 14.26 4.81 3.13 1.23 4.15
-------- -------- ------- ------- -------
Total from Investment Operations................... 14.26 4.73 3.05 1.19 4.02
-------- -------- ------- ------- -------
Less Distributions:
Distributions from net realized capital gain....... (4.70) (0.68) (4.65) -- (0.96)
-------- -------- ------- ------- -------
Total Distributions................................ (4.70) (0.68) (4.65) -- (0.96)
-------- -------- ------- ------- -------
Net Asset Value, End of Year....................... $ 26.70 $ 17.14 $ 13.09 $ 14.69 $ 13.50
======== ======== ======= ======= =======
TOTAL RETURN: 85.81% 36.49% 22.22% 8.81% 38.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted)............. $213,961 $122,279 $87,633 $60,645 $38,442
Ratio of expenses to average net assets............ 0.86% 0.87% 0.87% 0.87% 0.95%
Ratio of net income (loss) to average net assets... (0.51)% (0.56)% (0.49)% (0.32)% (0.89)%
Portfolio turnover rate............................ 118.16% 132.57% 277.14% 167.20% 96.62%
</TABLE>
___________________
See Notes to Financial Statements.
--P-72--
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
Frontier Portfolio Global Growth Portfolio
---------------------- ------------------------
Year Ended December 31, Year Ended December 31, 5/1/96*
--------------------------------------- ------------------------------------ to
PER SHARE DATA: 1999 1998 1997 1996 1995 1999 1998 1997 12/31/96
------- ------- ------- ------- ------- ------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period .................. $ 15.55 $ 15.78 $ 14.98 $ 13.56 $ 10.58 $ 13.33 $ 11.03 $ 9.91 $ 10.00
------- ------- ------- ------- ------- ------- -------- ------ ---------
Income from Investment
Operations:
Net investment income (loss). (0.10) (0.08) (0.08) (0.06) (0.07) (0.06) (0.01) 0.01 0.01
Net realized and unrealized
gain (loss)
on investments.............. 2.68 (0.15) 2.47 3.28 3.58 7.31 2.25 1.79 0.02
Net realized and unrealized
gain (loss)
on foreign currency
transactions............... -- -- -- -- -- (0.44) 0.14 (0.56) (0.11)
------- ------- ------- ------- ------- ------- -------- ------ ---------
Total from Investment
Operations.................. 2.58 (0.23) 2.39 3.22 3.51 6.81 2.38 1.24 (0.08)
------- ------- ------- ------- ------- ------- -------- ------ ---------
Less Distributions:
Dividends from net
investment income .......... -- -- -- -- -- -- -- -- (0.01)
Distributions from net
realized capital gain....... -- -- (1.59) (1.80) (0.53) (1.92) (0.08) (0.12) --
------- ------- ------- ------- ------- ------- -------- ------ ---------
Total Distributions:......... -- -- (1.59) (1.80) (0.53) (1.92) (0.08) (0.12) (0.01)
------- ------- ------- ------- ------- ------- -------- ------ ---------
Net Asset Value, End of
Period...................... $ 18.13 $ 15.55 $ 15.78 $ 14.98 $ 13.56 $ 18.22 $ 13.33 $ 11.03 $ 9.91
======= ======= ======= ======= ======= ======= ======== ======= =========
TOTAL RETURN: 16.59% (1.46)% 16.33% 23.93% 33.28% 52.49% 21.60% 12.57% (0.78)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted).............. $25,706 $39,148 $42,973 $31,672 $12,476 $11,889 $ 8,643 $ 5,449 $ 1,590
Ratio of expenses to
average net assets.......... 0.95% 0.92% 0.89% 0.92% 0.95% 1.40% 1.40% 1.40% 1.40%+
Ratio of net income (loss) to
average net assets......... (0.68)% (0.51)% (0.49)% (0.37)% (0.55)% (0.38)% (0.06)% 0.01% 0.37%+
Portfolio turnover rate...... 57.93% 86.52% 101.68% 119.74% 106.48% 69.18% 48.99% 77.85% 12.99%
Without management fee waiver
and expense reimbursement:++
Ratio of expenses to average
net assets................. 0.96% 1.37% 1.45% 1.60% 2.11% 6.04%+
Ratios of net income (loss)
to average net assets....... (0.69)% (0.97)% (0.43)% (0.26)% (0)%+
</TABLE>
__________________
* Commencement of operations.
+ Annualized.
++ The Manager, and Seligman Henderson, the former subadviser to the Seligman
International Portfolios, at their discretion, reimbursed expenses and/or
waived management fees for certain periods presented.
See Notes to Financial Statements.
--P-73--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Financial Highlights (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Smaller Companies Portfolio Global Technology Portfolio
--------------------------------------------- ----------------------------
Year Ended December 31, Year Ended December 31, 5/1/96*
---------------------------------------------- -------------------------- to
PER SHARE DATA: 1999 1998 1997 1996 1995 1999 1998 1997 12/31/96
------- ------- ------- ------- ------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 13.62 $ 12.98 $ 12.87 11.67 $ 10.31 $ 13.85 $ 10.59 $10.32 $ 10.00
------- ------- ------- ------- ------- ------- ------- ------- ---------
Income from Investment Operations:
Net investment income (loss)............. (0.06) (0.01) 0.02 0.02 0.05 (0.09) (0.05) 0.01 --
Net realized and unrealized gain
on investments......................... 4.10 1.02 1.17 2.31 2.04 16.25 3.81 2.15 0.30
Net realized and unrealized gain (loss)
on foreign currency transactions....... (0.18) (0.17) (0.75) (0.16) (0.30) (0.04) 0.11 (0.19) 0.10
------- ------- ------- ------- ------- ------- ------- ------- ---------
Total from Investment Operations......... 3.86 0.84 0.44 2.17 1.79 16.12 3.87 1.97 0.40
------- ------- ------- ------- ------- ------- ------- ------- ---------
Less Distributions:
Dividends from net investment income..... -- -- (0.02) (0.02) (0.05) -- -- (0.01) --
Distributions from net realized
capital gain........................... -- (0.20) (0.31) (0.95) (0.38) (2.55) (0.61) (1.69) (0.08)
------- ------- ------- ------- ------- ------- ------- ------- ---------
Total Distributions...................... -- (0.20) (0.33) (0.97) (0.43) (2.55) (0.61) (1.70) (0.08)
------- ------- ------- ------- ------- ------- ------- ------- ---------
Net Asset Value, End of Period........... $ 17.48 $ 13.62 $ 12.98 $ 12.87 $ 11.67 $ 27.42 $ 13.85 $ 10.59 $ 10.32
======= ======= ======= ======= ======= ======= ======= ======= =========
TOTAL RETURN: 28.34% 6.58% 3.43% 18.66% 17.38% 118.80% 36.80% 19.53% 4.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted)......................... $19,569 $20,814 $20,505 $16,876 $ 4,837 $22,087 $ 6,130 $3,686 $ 1,364
Ratio of expenses to
average net assets..................... 1.40% 1.40% 1.40% 1.40% 1.39% 1.40% 1.40% 1.40% 1.40%+
Ratio of net income (loss) to
average net assets..................... (0.46)% (0.06)% 0.24% 0.23% 0.64% (0.51)% (0.43)% 0.12% 0.60%+
Portfolio turnover rate.................. 46.75% 66.40% 64.81% 62.31% 55.65% 116.88% 82.27% 167.36% 45.04%
Without management fee waiver
and expense reimbursement:++
Ratio of expenses to
average net assets...................... 1.60% 1.50% 1.56% 1.90% 3.84% 1.41% 1.80% 2.10% 4.71%+
Ratio of net income (loss) to
average net assets...................... (0.66)% (0.16)% 0.08% (0.27)% (1.81)% (0.52)% (0.83)% (0.58)% (2.71)%+
</TABLE>
- -------------------
* Commencement of operations.
+ Annualized.
++ The Manager, and Seligman Henderson, the former subadviser to the Seligman
International Portfolios, at their discretion, reimbursed expenses and/or
waived management fees for certain periods presented.
See Notes to Financial Statements.
--P-74--
<PAGE>
Seligman Portfolios, Inc.
<TABLE>
<CAPTION>
High-Yield Bond Portfolio Income Portfolio
------------------------- ----------------------
Year Ended December 31, 5/1/95* Year Ended December 31,
------------------------------------- to -------------------------------------------
PER SHARE DATA: 1999 1998 1997 1996 12/31/95 1999 1998 1997 1996 1995
------- ------- ------- ------- --------- ------ ------ ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 10.87 $ 11.87 $ 11.19 $ 10.50 $ 10.00 $11.01 $ 10.80 $ 10.52 $ 10.56 $ 9.97
------- ------- ------- ------- --------- ------ ------- ------- ------- -------
Income from Investment
Operations:
Net investment income...... 1.19 1.11 0.91 0.77 0.22 0.53 0.45 0.56 0.58 0.60
Net realized and
unrealized gain (loss)
on investments............ (1.27) (0.99) 0.78 0.77 0.52 (0.23) 0.38 0.91 0.13 1.19
------- ------- ------- ------- --------- ------ ------- ------- ------- -------
Total from Investment
Operations................ (0.08) 0.12 1.69 1.54 0.74 0.30 0.83 1.47 0.71 1.79
------- ------- ------- ------- --------- ------ ------- ------- ------- -------
Less Distributions:
Dividends from net
investment income........ (1.20) (1.11) (0.90) (0.77) (0.22) (0.52) (0.46) (0.55) (0.58) (0.60)
Distributions from net
realized capital gain.... -- (0.01) (0.11) (0.08) (0.02) (0.88) (0.16) (0.64) (0.17) (0.60)
------- ------- ------- ------- --------- ------ ------- ------- ------- -------
Total Distributions........ (1.20) (1.12) (1.01) (0.85) (0.24) (1.40) (0.62) (1.19) (0.75) (1.20)
------- ------- ------- ------- --------- ------ ------- ------- ------- -------
Net Asset Value,
End of Year............. $ 9.59 $ 10.87 $ 11.87 $ 11.19 $ 10.50 $ 9.91 $ 11.01 $ 10.80 $ 10.52 $ 10.56
======= ======= ======= ======= ========= ====== ======= ======= ======= =======
TOTAL RETURN: (0.75)% 1.02% 15.09% 14.62% 7.37% 2.87% 7.76% 14.02% 6.66% 17.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted)........... $26,892 $32,253 $23,268 $11,176 $ 3,009 $8,595 $14,582 $13,835 $13,717 $12,619
Ratio of expenses to
average net assets....... 0.70% 0.70% 0.70% 0.70% 0.70%+ 0.60% 0.60% 0.60% 0.59% 0.60%
Ratio of net income
to average net assets..... 10.33% 9.60% 9.61% 9.77% 7.46%+ 3.62% 3.94% 4.71% 5.37% 5.55%
Portfolio turnover rate.... 57.05% 43.13% 74.54% 117.01% 67.55% 75.08% 70.45% 96.99% 19.59% 51.22%
Without management
fee waiver and expense
reimbursement:++
Ratio of expenses to
average net assets........ 0.77% 0.74% 0.79% 0.88% 4.38%+ 0.72% 0.61% 0.63% 0.62%
Ratios of net income
to average net assets..... 10.26% 9.56% 9.52% 9.59% 3.78%+ 3.50% 3.93% 4.68% 5.53%
</TABLE>
- ----------------
* Commencement of operations.
+ Annualized.
++ The Manager, and Seligman Henderson, the former subadviser to the Seligman
International Portfolios, at their discretion, reimbursed expenses and/or
waived management fees for certain periods presented.
See Notes to Financial Statements.
--P-75--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Financial Highlights (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large-Cap
Growth Large-Cap Small-Cap
International Growth Portfolio Portfolio Value Value Portfolio
------------------------------ --------- Portfolio ---------------
----------
Year Ended December 31, 5/1/99* Year 5/1/98* Year 5/1/98*
----------------------------------------------- to Ended to Ended to
PER SHARE DATA: 1999 1998 1997 1996 1995 12/31/99 12/31/99 12/31/98 12/31/99 12/31/98
------ ------- ------- ------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 15.37 $13.54 $ 12.96 $ 12.39 $ 11.34 $ 10.00 $ 9.66 $ 10.00 $ 7.31 $ 10.00
------- ------ ------- ------- ------- --------- ------- ------- ------ --------
Income from Investment
Operations:
Net investment income
(loss)................... (0.05) 0.08 0.03 0.07 0.15 -- 0.10 0.04 (0.03) (0.02)
Net realized and unrealized
gain (loss) on
investments 4.69 1.90 2.11 1.13 0.90 2.16 (0.37) (0.07) 2.49 (1.73)
Net realized and
unrealized gain (loss)
on foreign currency
transactions............. (0.73) 0.16 (1.06) (0.32) 0.24 -- -- -- -- --
------- ------ ------- ------- ------- --------- ------- ------- ------ --------
Total from Investment
Operations............... 3.91 2.14 1.08 0.88 1.29 2.16 (0.27) (0.03) 2.46 (1.75)
------- ------ ------- ------- ------- --------- ------- ------- ------ --------
Less Distributions:
Dividends from net
investment income........ -- (0.15) (0.03) (0.07) (0.15) -- (0.11) (0.04) -- --
Distributions from net
realized capital gain...... (2.65) (0.16) (0.47) (0.24) (0.09) -- -- (0.27) (1.69) (0.94)
------- ------ ------- ------- ------- --------- ------- ------- ------ --------
Total Distributions........ (2.65) (0.31) (0.50) (0.31) (0.24) -- (0.11) (0.31) (1.69) (0.94)
------- ------ ------- ------- ------- --------- ------- ------- ------ --------
Net Asset Value,
End of Period............ $ 16.63 $15.37 $ 13.54 $ 12.96 $ 12.39 $ 12.16 $ 9.28 $ 9.66 $ 8.08 $ 7.31
======= ====== ======= ======= ======= ========= ======= ======= ====== ========
TOTAL RETURN: 26.64% 15.81% 8.35% 7.08% 11.34% 21.60% (2.76)% (0.26)% 35.26% (17.00)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted)........... $10,248 $9,893 $ 9,182 $ 7,242 $ 4,183 $ 3,668 $ 5,758 $ 3,845 $4,403 $ 2,469
Ratio of expenses to
average net assets....... 1.39% 1.40% 1.40% 1.40% 1.35% 0.70%+ 0.80% 0.80%+ 1.00% 1.00%+
Ratio of net income (loss)
to average net assets.... 0.33% 0.52% 0.43% 0.70% 1.01% (0.03)%+ 1.18% 1.11%+ (0.27)% (0.34)%+
Portfolio turnover rate.... 79.17% 75.81% 89.43% 48.53% 41.40% 56.69% 28.01% 65.82% 90.51% 73.87%
Without management fee
waiver and expense
reimbursement:++
Ratio of expenses to
average net assets....... 1.66% 1.78% 2.07% 2.30% 3.40% 1.52%+ 1.13% 2.24%+ 1.41% 3.08%+
Ratio of net income (loss)
to average net assets..... 0.06% 0.14% (0.24)% (0.20)% (1.04)% (0.85)%+ 0.85% (0.33)%+ (0.33)%+ (2.43)%+
</TABLE>
- ------------------
* Commencement of operations.
+ Annualized.
++ The Manager, at its discretion, reimbursed expenses and/or waived management
fees for certain periods presented.
See Notes to Financial Statements.
--P-76--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
Report of the Independent Auditors
- -------------------------------------------------------------------------------
The Directors and Shareholders,
Seligman Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Seligman Portfolios, Inc. (comprising,
respectively, the Seligman Bond Portfolio, Seligman Capital Portfolio, Seligman
Cash Management Portfolio, Seligman Common Stock Portfolio, Seligman
Communications and Information Portfolio, Seligman Frontier Portfolio, Seligman
Global Growth Portfolio, Seligman Global Smaller Companies Portfolio, Seligman
Global Technology Portfolio, Seligman High-Yield Bond Portfolio, Seligman Income
Portfolio, Seligman International Growth Portfolio, Seligman Large-Cap Growth
Portfolio, Seligman Large-Cap Value Portfolio, and Seligman Small-Cap Value
Portfolio, collectively referred to as the "Fund") as of December 31, 1999, and
the related statements of operations, the statements of changes in net assets,
and the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the custodians and brokers. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Seligman Portfolios, Inc. at December
31, 1999, the results of their operations, the changes in their net assets, and
the financial highlights for each of the indicated periods, in conformity with
accounting principles generally accepted in the United States.
Ernst & Young LLP
New York, New York
February 7, 2000
--P-77--
<PAGE>
Seligman Portfolios, Inc.
- -------------------------------------------------------------------------------
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, ICI Mutual Insurance Company
Member of the Board of Governors,
Investment Company Institute
Director Emeritus
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
<PAGE>
- -------------------------------------------------------------------------------
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
Daniel J. Charleston
Vice President
Iain C. Clark
Vice President
Nitin Mehta
Vice President
Arsen Mrakovcic
Vice President
Marion S. Schultheis
Vice President
Charles C. Smith, Jr.
Vice President
Lawrence P. Vogel
Vice President
Paul H. Wick
Vice President
Gary S. Zeltzer
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- -------------------------------------------------------------------------------
Manager
- -------------------------------------------------------------------------------
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, New York 10017
Subadviser
Henderson Investment
Management Limited
3 Finsbury Avenue
London EC2M 2PA
General Distributor
Seligman Advisors, Inc.
100 Park Avenue
New York, New York 10017
Custodians
State Street Bank & Trust Co.
The Chase Manhattan Bank
General Counsel
Sullivan & Cromwell
Independent Auditors
Ernst & Young LLP
