TRI-CONTINENTAL CORPORATION
MANAGED BY
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
INVESTMENT MANAGERS AND ADVISORS
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
This report is intended only for the information of stockholders or those who
have received the current prospectus covering shares of Common Stock of
Tri-Continental Corporation, which contains information about management fees
and other costs.
CETRI3c 9/96
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3RD QUARTER REPORT 1996
TRI-CONTINENTAL
CORPORATION
AN INVESTMENT YOU CAN LIVE WITH
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<PAGE>
TRI-CONTINENTAL CORPORATION
To the Stockholders:
Tri-Continental Corporation's investment results were strong in the third
quarter of 1996. Consequently, for the nine months ended September 30, 1996, the
Corporation's results based on net asset value outpaced the Standard &
Poor's 500 Composite Stock Price Index (S&P 500) and slightly lagged the
universe of Closed-End Growth & Income Funds, as measured by Lipper Analytical
Services. The total return based on market price was stronger, reflecting a
narrowing in the discount from net asset value. Specific performance information
and a discussion with your Portfolio Manager about the past three months begin
on page 2.
In the third quarter of 1996, the economy continued to grow at a healthy
pace with virtually no inflationary repercussions and no action from the Federal
Reserve Board to alter interest rates. Reports issued in September reflected the
economy's health, showing improvement in production, new home sales, wages, and
spending.
With the lowest unemployment rate since June 1990, strong personal incomes,
interest rates far below their 1980s levels, and few signs of inflationary
pressure, consumer confidence as measured by The Con-ference Board rose 25%
above its January 1996 level.
Despite the Fed's unchanging position on interest rates in the third
quarter, the apprehension surrounding each Fed meeting continued to have a
significant influence on the financial markets. In the equity markets, July was
marked by a correction, August by a recovery, and September by a series of
record-breaking highs. Continuing the year's trend, the bond markets rose or
fell with the release of each new economic report. Following the Fed's September
24 decision to maintain the current fed funds rate, the yields on the 30-year
Treasury bond declined modestly. For the remainder of the month, the yield
ranged from 6.89% to 6.98%, ending the quarter at 6.92%.
Going forward, we foresee continued, albeit moderate, economic growth and a
benign level of inflation. This environment of modest growth, combined with
relatively stable interest rates, should be beneficial for financial markets in
the months ahead. As always, there could be short-term volatility, but we remain
confident in the long-term outlook.
As we near the end of the year, we encourage you to review your overall
investment portfolio. When doing so, you may wish to consult your financial
advisor to discuss financial issues such as tax planning, and to ensure that you
are following the best investment strategy to help you seek your financial
goals.
We welcome Odette Galli as Co-Portfolio Manager of Tri-Continental
Corporation. Ms. Galli has been with J. & W. Seligman & Co. Incorporated since
1993, has been a member of the Seligman Growth and Income Team since early 1995,
and has 15 years of investment experience.
We thank you for your continued interest in Tri-Continental Corporation,
and look forward to serving your investment needs in the many years to come.
By order of the Board of Directors,
/s/ William C. Morris
- ---------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-----------------
Brian T. Zino
President
October 30, 1996
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TRI-CONTINENTAL CORPORATION
INTERVIEW WITH YOUR PORTFOLIO MANAGER, CHARLES C. SMITH, JR.
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[PHOTO]
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HOW WERE TRI-CONTINENTAL'S INVESTMENT RESULTS IN THE PAST THREE MONTHS?
The third quarter of 1996 was another strong period for Tri-Continental
Corporation. Although the Corporation's total return based on net asset value
modestly lagged the Standard & Poor's 500 Composite Stock Price Index (S&P 500),
it outpaced the average of its competitor universe, the Closed-End Growth &
Income Funds, as measured by Lipper Analytical Services. On a market price
basis, however, the Corporation significantly outperformed both the S&P 500 and
its Lipper competitors in the third quarter. Additionally, for the nine months
ended September 30, 1996, the Corporation's net asset value and market price
results outpaced the S&P 500.
WHAT SPECIFIC ECONOMIC FACTORS INFLUENCED THE CORPORATION IN THE PAST QUARTER?
Signs of economic strength continued in the third quarter, including positive
housing and employment figures. These figures triggered fears of inflationary
growth and a correction in the equity markets in July. The equity markets
quickly recovered, due in part to positive corporate profit reports which
exceeded Wall Street expectations, and ended the quarter with most indices
reaching new highs. These record-breaking advances resulted in an overall
improvement in the valuations of many of the Corporation's holdings. However,
volatility in the fixed-income markets, caused by participants' concern over a
possible Federal Reserve Board interest rate hike, impaired the performance of
the Corporation's interest rate-sensitive positions, specifically its banks and
utility stocks.
WHAT MARKET TRENDS AFFECTED THE CORPORATION IN THE PAST THREE MONTHS?
This quarter witnessed the comeback of more defensive holdings, as the Dow Jones
Industrial Average outperformed the S&P 500. Market participants retreated to
established large-cap industry leaders with solid profit histories in
anticipation of an economic slowdown. Our larger-cap investment style,
therefore, improved the Corporation's investment results in the quarter.
Otherwise, the utility sector underperformed due to continued industry-wide
deregulation and competitive pricing wars. We slowly reduced our weighting in
the utility sector, which performed poorly this quarter, and redeployed assets
in technology companies. Further, we were able to take profits in the retail
sector, which had seen a strong run earlier in the year but became fairly valued
in the third quarter. We also reduced our energy holdings, taking profits in
rallying gas and drilling companies that approached full valuations.
WHAT INDUSTRIES, SPECIFICALLY, PERFORMED WELL WITHIN THE PORTFOLIO?
Technology stocks, which performed very well in the second quarter, continued to
improve the Corporation's investment results. The July correction gave us an
opportunity to purchase quality technology stocks at reduced prices. We
increased the Corporation's weighting in blue-chip technology issues, adding
companies such as
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TRI-CONTINENTAL CORPORATION
Compaq Computer Corporation and Hewlett Packard, and took profits in Dell
Computer Corporation late in the quarter. We also added Kemet Corporation,
seeing an opportunity for a turnaround in the components industry. Elsewhere, we
selectively added to health care, purchasing innovative drug companies such as
Schering-Plough Corporation due to their earnings growth prospects.
WHAT IS YOUR OUTLOOK?
This quarter, we modestly reduced Tri-Continental's exposure to convertible
stocks and invested the profits into common stocks that have better growth
characteristics and that can participate more directly in the appreciation of
the equity markets. Over the next 12 months, we anticipate the moderating
economy will continue to support the financial markets. Currently, the portfolio
is poised to take advantage of a continued bull market. Our strength is built on
our value-oriented approach which is evident in the fact that the portfolio has
a lower price-to-earnings ratio than the S&P 500. Therefore, we should
participate in a rising market and be less severely impacted by potential
corrections. Going forward, we continue to seek attractively valued companies
with good fundamentals and long-term earnings growth prospects in promising
industries.
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TRI-CONTINENTAL CORPORATION
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<TABLE>
<CAPTION>
INVESTMENT RESULTS PER COMMON SHARE
TOTAL RETURNS*
For Periods Ended September 30, 1996
Average Annual
------------------------------------
Three Nine One Five 10
Months Months Year Years Years
-------- -------- ----- ----- -----
<S> <C> <C> <C> <C> <C>
MARKET PRICE 4.84% 15.44% 21.88% 10.70% 11.36%
NET ASSET VALUE 2.35 13.90 20.67 13.05 13.08
S&P 500** 3.09 13.50 20.33 15.23 14.95
<CAPTION>
PRICE PER SHARE
September 30, 1996 June 30, 1996 March 31, 1996 December 31, 1995
------------------- ------------- --------------- -------------------
<S> <C> <C> <C> <C>
MARKET PRICE $25.00 $24.00 $23.875 $22.625
NET ASSET VALUE 30.07 29.57 29.28 27.58
<CAPTION>
DIVIDEND AND CAPITAL GAIN INFORMATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
Capital Gain
Capital Gain -------------------------------------
Dividend Paid+ Paid Realized Unrealized++
---------------- -------------- --------- ------------
<S> <C> <C> <C> <C>
$0.50 $0.572 $2.44 $6.07
</TABLE>
* These rates of return reflect changes in market price or net asset value,
as applicable, and assume that all distributions within the period are
reinvested in additional shares. The rates of return will vary and the
principal value of an investment will fluctuate. Shares, if redeemed, may
be worth more or less than their original cost. Past performance is not
indicative of future investment results.
** The S&P 500 is an unmanaged index that assumes reinvestment of estimated
dividends, and does not reflect fees and expenses. Investors may not invest
directly in an index.
+ Preferred Stockholders were paid dividends totaling $1.875 per share.
++ Represents the per share amount of net unrealized appreciation of portfolio
securities as of September 30, 1996.
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TRI-CONTINENTAL CORPORATION
LARGEST PORTFOLIO CHANGES
July 1 TO September 30, 1996
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 9/30/96
--------- ----------
COMMON STOCKS
Arrow Electronics, Inc. 300,000 300,000
Automatic Data
Processing, Inc. 300,000 300,000
Donnelley (R.R.) & Sons
Company 300,000 600,000
Kemet Corporation 600,000 600,000
Medtronic, Inc. 200,000 400,000
Motorola Inc. 200,000 475,000
PepsiCo, Inc. 400,000 900,000
Schering-Plough Corporation 200,000 200,000
Union Camp Corporation 300,000 300,000
WorldCom, Inc. 750,000 750,000
SHARES
----------------------------
HOLDINGS
REDUCTIONS DECREASE 9/30/96
---------- ----------
COMMON STOCKS
American Stores Company 500,000 --
American Telephone &
Telegraph Company 350,000 --
Anadarko Petroleum Company 200,000 --
Avalon Properties, Inc. 500,000 --
Boeing Company 175,000 --
The Clorox Company 200,000 --
Dell Computer Corporation 200,000 --
Fluor Corporation 200,000 --
Kimco Realty Corporation 450,000 --
Tandy Corporation 350,000 --
Largest portfolio changes are based on cost of purchases and proceeds from sales
of securities.
10 LARGEST HOLDINGS
At September 30, 1996
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VALUE
-----------
General Electric Company $36,400,000
General Signal Corporation 35,200,000
American International Group, Inc. 30,225,000
Bank of New York Company, Inc. 29,375,000
Fleet Financial Group, Inc. 28,925,000
Intel Corporation 28,631,250
General Re Corporation 28,350,000
Echlin Inc. 28,237,500
Wal-Mart Stores, Inc. 26,375,000
Colgate-Palmolive Company 26,062,500
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TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (UNAUDITED)
Shares Value
------- -------------
COMMON STOCKS - 89.5%
AEROSPACE - 2.8%
General Dynamics Corporation 200,000 $ 13,775,000
General Motors Corporation Class "H" 200,000 11,550,000
Lockheed Martin Corporation 200,000 18,025,000
Raytheon Company 300,000 16,687,500
United Technologies Corporation 150,000 18,018,750
------------
$ 78,056,250
------------
AUTOMOTIVE AND RELATED - 2.6%
Autoliv (ADRs)+* 70,000 $ 3,045,000
Echlin Inc. 900,000 28,237,500
Genuine Parts Company 330,000 14,437,500
Harley-Davidson Inc. 500,000 21,500,000
Volkswagen AG (ADRs) 68,000 5,073,473
------------
$ 72,293,473
------------
BASIC MATERIALS - 1.3%
Aluminum Company of America 200,000 $ 11,800,000
Nucor Corporation 200,000 10,150,000
Pohang Iron & Steel (ADSs) 210,000 4,488,750
Reynolds Metals Company 200,000 10,225,000
------------
$ 36,663,750
------------
BUILDING AND
CONSTRUCTION - 0.5%
Sherwin-Williams Corporation 300,000 $ 13,912,500
------------
CHEMICALS - 2.3%
Bayer AG 400,000 $ 14,615,561
Dow Chemical Company 250,000 20,062,500
Morton International, Inc. 300,000 11,925,000
Olin Corporation 200,000 16,800,000
------------
$ 63,403,061
------------
COMMUNICATIONS - 5.2%
Alcatel Alsthom Compagnie
Generale d'Electricite 65,000 $ 5,481,913
ALLTEL Corporation 500,000 13,937,500
Frontier Corporation 400,000 10,650,000
GTE Corporation 600,000 23,100,000
Indosat (ADRs) 84,200 2,778,600
NYNEX Corporation 250,000 10,875,000
SBC Communications Inc. 400,000 19,250,000
Tele Danmark (ADSs) 415,000 9,804,375
Telecom Italia-Di Risp 2,526,000 4,651,842
Telecom Italia Mobile-Di Risp 2,526,000 3,134,396
Teleport Communications
Group Inc. Class "A"* 500,000 11,781,250
U.S. West, Inc. 400,000 11,900,000
WorldCom, Inc.* 750,000 16,125,000
------------
$143,469,876
------------
COMPUTER AND
BUSINESS SERVICES - 5.8%
Automatic Data Processing, Inc. 300,000 $ 13,087,500
Compaq Computer Corporation* 250,000 16,031,250
Electronic Data Systems Corporation 350,000 21,481,250
First Data Corporation 250,000 20,406,250
Hewlett-Packard Company 400,000 19,500,000
Intel Corporation 300,000 28,631,250
Microsoft Corporation* 150,000 19,771,875
Olivetti & C Spa 3,063,300 1,122,232
Sun Microsystems, Inc.* 350,000 21,721,875
------------
$161,753,482
------------
CONSUMER GOODS
AND SERVICES - 11.8%
Adidas AG 165,960 $ 15,127,342
Allied-Domecq plc 870,000 6,116,289
B.A.T. Industries plc 1,440,000 9,593,663
Coca-Cola Company 300,000 15,262,500
Colgate-Palmolive Company 300,000 26,062,500
CPC International Inc. 250,000 18,718,750
Eastman Kodak Company 300,000 23,550,000
General Mills, Inc. 200,000 12,075,000
Gillette Company 200,000 14,425,000
International Flavors & Fragrances Inc.500,000 21,812,500
Liz Claiborne, Inc. 400,000 14,900,000
McDonald's Corporation 400,000 18,950,000
PepsiCo, Inc. 900,000 25,425,000
Philip Morris Companies, Inc. 150,000 13,462,500
Procter & Gamble Company 200,000 19,500,000
RJR Nabisco Holdings Corporation 500,000 13,000,000
Rubbermaid Incorporated 800,000 19,600,000
Sara Lee Corporation 600,000 21,450,000
Sysco Corporation 500,000 16,812,500
------------
$325,843,544
------------
DIVERSIFIED - 3.3%
Allied Signal Inc. 300,000 $ 19,762,500
Cooper Industries, Inc. 400,000 17,300,000
Corning, Inc. 350,000 13,650,000
Minnesota Mining &
Manufacturing Company 300,000 20,962,500
Tenneco, Inc. 400,000 20,050,000
------------
$ 91,725,000
------------
DRUGS AND HEALTH CARE - 7.3%
Abbott Laboratories 300,000 $ 14,775,000
American Home Products Corporation 300,000 19,125,000
Baxter International Inc. 250,000 11,687,500
Bristol-Myers Squibb Company 250,000 24,093,750
Guidant Corporation 250,000 13,812,500
Medtronic, Inc. 400,000 25,650,000
Merck & Co., Inc. 300,000 21,112,500
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See footnotes on page 8.
6
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TRI-CONTINENTAL CORPORATION September 30, 1996
Shares Value
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DRUGS AND HEALTH
CARE (continued)
Pharmacia & Upjohn, Inc. 425,000 $ 17,531,250
Sandoz AG 6,800 8,166,507
Schering-Plough Corporation 200,000 12,300,000
United Healthcare Corporation 250,000 10,406,250
Warner-Lambert Company 350,000 23,100,000
------------
$201,760,257
------------
ELECTRIC AND
GAS UTILITIES - 3.8%
Baltimore Gas & Electric Company 400,000 $ 10,450,000
British Gas plc (ADRs) 115,000 3,608,125
Central & South West Corporation 500,000 13,000,000
Empresa Nacional de Electricidad (ADRs)132,000 7,837,500
Entergy Corporation 500,000 13,500,000
Hong Kong & China Gas Company Ltd.* 4,800,000 8,162,421
Hong Kong & China Gas
Company Ltd. (Warrants)* 400,000 121,557
Huaneng Power International (ADRs)* 270,000 4,488,750
Sonat Inc. 400,000 17,700,000
VEBA AG 230,000 12,053,903
The Williams Companies, Inc. 300,000 15,300,000
------------
$106,222,256
------------
ELECTRONICS - 4.6%
AMP Inc. 600,000 $ 23,250,000
Arrow Electronics, Inc. 300,000 13,350,000
Atmel Corporation* 200,000 6,162,500
Kemet Corporation* 600,000 12,187,500
Motorola Inc. 475,000 24,521,875
Synopsys, Inc.* 250,000 11,531,250
Teradyne, Inc. 500,000 8,312,500
Vishay Intertechnology, Inc.* 1,000,000 23,125,000
Xilinx, Inc.* 150,000 5,090,625
------------
$127,531,250
------------
ENERGY - 5.9%
Amoco Corporation 275,000 $ 19,387,500
Atlantic Richfield Company 125,000 15,937,500
Baker Hughes Incorporated 500,000 15,187,500
Enron Corporation 500,000 20,375,000
Exxon Corporation 300,000 24,975,000
PanEnergy Corporation 450,000 15,581,250
Schlumberger Ltd. 200,000 16,900,000
Texaco Inc. 250,000 23,000,000
Total S.A. Class "B" 76,983 6,060,186
Union Pacific Resources Group Inc. 200,000 5,600,000
------------
$163,003,936
------------
ENTERTAINMENT
AND LEISURE - 1.1%
Disney (Walt) Company 250,000 $ 15,843,750
News Corp. Ltd. (ADRs) 260,000 5,427,500
News Corp. Ltd. (ADRs-Voting
Preference Shares) 130,000 $ 2,210,000
Television Broadcast* 1,900,000 7,063,882
------------
$ 30,545,132
------------
ENVIRONMENTAL
MANAGEMENT - 0.5%
Browning-Ferris Industries, Inc. 600,000 $ 15,000,000
------------
FINANCE AND INSURANCE - 12.5%
ABN-AMRO Holding N.V. 127,717 $ 7,086,677
ACE Limited 300,000 15,862,500
American International Group, Inc. 300,000 30,225,000
AXA S.A. 166,509 9,976,739
BankAmerica Corporation 300,000 24,637,500
Bank of New York Company, Inc. 1,000,000 29,375,000
Citicorp 250,000 22,656,250
Federal National Mortgage Association 600,000 20,925,000
Fleet Financial Group, Inc. 650,000 28,925,000
General Re Corporation 200,000 28,350,000
Grupo Financiero Banamex
Accival, S.A. Class "B" 2,176,000 4,720,149
Household International, Inc. 250,000 20,562,500
HSBC Holdings plc 550,000 10,206,259
ING Groep N.V. 431,093 13,459,841
Irish Life plc 1,200,000 4,819,379
Krung Thai Bank Public
Company Limited 1,100,000 4,716,202
Mellon Bank Corporation 400,000 23,700,000
St. Paul Companies 400,000 22,200,000
Travelers Incorporated 500,000 24,562,500
------------
$346,966,496
------------
MANUFACTURING AND INDUSTRIAL
EQUIPMENT - 5.5%
ABB AG (ADRs) 97,000 $ 11,870,132
BTR plc 1,300,000 5,505,960
Emerson Electric Co. 250,000 22,531,250
General Electric Company 400,000 36,400,000
General Signal Corporation 800,000 35,200,000
Illinois Tool Works, Inc. 200,000 14,425,000
Ingersoll-Rand Company 300,000 14,250,000
Mannesmann 22,500 8,436,670
Pacific Dunlop Ltd. 1,500,000 3,109,613
------------
$151,728,625
------------
PAPER AND FOREST PRODUCTS - 3.2%
International Paper Company 600,000 $ 25,500,000
Kimberly-Clark Corporation 200,000 17,625,000
The Mead Corporation 400,000 23,450,000
Stora Kopparbergs Class "B" 550,000 7,010,914
Union Camp Corporation 300,000 14,662,500
------------
$ 88,248,414
------------
PUBLISHING - 2.6%
Donnelley (R.R.) & Sons Company 600,000shs. $ 19,350,000
Elsevier 650,000 10,755,423
Gannet Co., Inc. 200,000 14,075,000
Reader's Digest Association Inc.
Class "A" 400,000 16,350,000
Tribune Co. 150,000 11,700,000
------------
$ 72,230,423
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TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Shares or
Prin. Amt. Value
--------- -------------
REAL ESTATE INVESTMENT
TRUST - 0.6%
Security Capital Industrial Trust 400,000shs. $ 7,300,000
Security Capital Pacific Trust 400,000 8,450,000
------------
$ 15,750,000
------------
RETAIL TRADE - 4.1%
May Department Stores Company 400,000 $ 19,450,000
The Pep Boys--Manny, Moe and Jack 500,000 17,812,500
Sears, Roebuck & Company 300,000 13,425,000
Tesco plc 1,478,000 7,023,532
Toys 'R' Us 300,000 8,737,500
Wal-Mart Stores, Inc. 1,000,000 26,375,000
Woolworth Corporation* 1,000,000 20,625,000
------------
$113,448,532
------------
TRANSPORTATION - 2.2%
Burlington Northern Santa Fe 200,000 $ 16,875,000
Caliber System, Inc. 600,000 9,675,000
Conrail Inc. 200,000 14,475,000
Jurong Shipyard Ltd. 425,000 2,067,649
Norfolk Southern Corporation 200,000 18,275,000
------------
$ 61,367,649
------------
TOTAL COMMON STOCKS
(Cost: $1,929,382,734) $2,480,923,906
--------------
CONVERTIBLE ISSUES - 3.6%
Convertible Debentures - 1.7%
AUTOMOTIVE AND RELATED - 0.4%
Magna International Inc.,
5%, 10/15/2002 $ 10,000,000 $ 10,712,500
--------------
COMPUTER AND
BUSINESS SERVICES - 0.1%
EMC Corporation, 4 1/4%, 1/1/2001 1,500,000 $ 1,773,750
--------------
DIVERSIFIED - 0.4%
MascoTech Inc., 4 1/2%, 12/15/2003 15,000,000 $ 11,512,500
--------------
FINANCE AND INSURANCE - 0.1%
LibLife International,
6 1/2%, 9/30/2004 3,500,000 $ 4,576,250
MANUFACTURING AND
INDUSTRIAL EQUIPMENT - 0.5%
Teco Electrical and Machinery,
2 3/4%, 4/15/2004 3,000,000 $ 2,340,000
TriMas Corporation, 5%, 8/1/2003 10,000,000 11,050,000
--------------
$ 13,390,000
--------------
TRANSPORTATION - 0.2%
Nippon Yusen, 2%, 9/29/2000 505,000,000** $ 5,188,092
--------------
Total Convertible Debentures
(Cost: $44,060,921) $ 47,153,092
--------------
Convertible Preferred Stocks - 1.9%
DIVERSIFIED - 0.5%
Corning Inc. (Delaware), 6% 250,000shs. $ 14,125,000
RETAIL TRADE - 0.5% --------------
Kmart Financing, 7 3/4% 300,000 $ 14,662,500
STEEL - 0.9% --------------
AK Steel Holdings Corporation, 7% 350,000 $ 13,168,750
Bethlehem Steel Corporation, $3.50+ 300,000 11,925,000
--------------
$ 25,093,750
--------------
Total Convertible Preferred Stocks
(Cost: $57,664,162) $ 53,881,250
--------------
TOTAL CONVERTIBLE ISSUES
(Cost: $101,725,083) $ 101,034,342
--------------
TRI-CONTINENTAL FINANCIAL
DIVISION++ - 0.6%
(Cost: $14,486,594) $ 15,616,226
--------------
SHORT-TERM HOLDINGS - 6.6%
First National Bank of Chicago,
Grand Cayman,
Fixed Time Deposit,
5 3/4%, 10/1/1996 $ 84,300,000 $ 84,300,000
Bank of Nova Scotia, Toronto,
Fixed Time Deposit,
5 3/4%, 10/1/1996 100,000,000 100,000,000
--------------
TOTAL SHORT-TERM HOLDINGS
(Cost: $184,300,000) $ 184,300,000
--------------
TOTAL INVESTMENTS - 100.3%
(Cost: $2,229,894,411) $2,781,874,474
OTHER ASSETS LESS
LIABILITIES - (0.3)% (9,597,835)
--------------
NET INVESTMENT ASSETS - 100.0% $2,772,276,639
==============
- ----------
*Non-income producing security.
**Principal amount reported in Japanese Yen.
+Rule 144A security.
++Restricted securities.
Note: Investments in stocks, bonds, limited partnership interests, and
short-term holdings maturing in more than 60 days are valued at current market
values or, in their absence, fair values determined in accordance with
procedures approved by the Board of Directors. Securities traded on national
exchanges are valued at last sales prices or, in their absence and in the case
of over-the-counter securities, a mean of bid and asked prices. Short-term
holdings maturing in 60 days or less are valued at amortized cost.
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TRI-CONTINENTAL CORPORATION
For information about your Corporation, call or write Corporate Communications,
J.& W. Seligman & Co. Incorporated, 100 Park Avenue, New York, NY10017. If you
want information about your investment account, call or write Stockholder
Services,Seligman Data Corp., at the same address.
- --------------------------------------------------------------------------------
IMPORTANT TELEPHONE NUMBERS
STOCKHOLDER RETIREMENT PLAN 24-HOUR AUTOMATED
SERVICES SERVICES TELEPHONE ACCESS SERVICE
(800) TRI-1092 (800) 445-1777 (800) 622-4597
(8:30 a.m. to 6:00 p.m. EST)
- --------------------------------------------------------------------------------
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TRI-CONTINENTAL CORPORATION INVESTS PRIMARILY TO PRODUCE LONG-TERM GROWTH OF
BOTH CAPITAL AND INCOME, WHILE PROVIDING REASONABLE CURRENT INCOME.
TY is Tri-Continental Corporation's symbol for its Common Stock on the New York
Stock Exchange.
