-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TP0EpaoG+AwL5e0FcTJ124DhOGNfYKIGfeXGyoFbS0p2Kym0cyYk+oVBZLyGdVvL Gd60fTV9LSVEqwxIoh5Bsg== 0000817841-98-000022.txt : 19980828 0000817841-98-000022.hdr.sgml : 19980828 ACCESSION NUMBER: 0000817841-98-000022 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980827 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SELIGMAN PORTFOLIOS INC/NY CENTRAL INDEX KEY: 0000817841 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05221 FILM NUMBER: 98698800 BUSINESS ADDRESS: STREET 1: 100 PARK AVENUE STREET 2: 7TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2124880200 MAIL ADDRESS: STREET 1: 100 PARK AVENUE STREET 2: 7TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: SELIGMAN MUTUAL BENEFIT PORTFOLIOS INC DATE OF NAME CHANGE: 19920703 N-30D 1 MID-YEAR REPORT 6/30/98 - ------------------------------------------------------------------------------ MID-YEAR REPORT - ------------------------------------------------------------------------------ SELIGMAN PORTFOLIOS, INC. J&WS June 30, 1998 SELIGMAN PORTFOLIOS, INC. July 31, 1998 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios, Inc., is pleased to provide the enclosed unaudited financial statements and accompanying information for Seligman Portfolios, Inc., the underlying investment vehicle for your policy, for the six months ended June 30, 1998. The US economy continued to grow throughout the first half of the year, bringing the expansion into an unprecedented eighth year. Inflation remained low, wages rose, consumer spending was strong, and the labor market remained tight. Further, the supply of consumer goods kept pace with demand, which helped the economic expansion remain balanced. Within the US equity market, the dominant investment trend in the first half of 1998 continued to be a "flight to quality." Investors stressed the importance of quality, liquidity, and safety. Consequently, the market remained "narrow," with demand for large-capitalization growth stocks far outpacing demand for their value counterparts, as well as small-capitalization and mid-capitalization stocks. The market effectively became two-tiered, as the 30 largest companies in the S&P 500 accounted for more than half of its gains. Within the fixed-income markets, the Asian financial crisis began to favorably impact the bond market, as both foreign and domestic investors sought the safety and quality of US Treasury securities. This sent yields down and prices up. Further, the potential for slower economic growth, coupled with the Asian crisis, caused the Federal Reserve Board to leave short-term interest rates unchanged in the first half of the year. The 30-year US Treasury bond yield finished the period at 5.63% on June 30, down from 5.92% on December 31, 1997. Looking ahead, while the Asian financial crisis only modestly affected the US economy in the first half of 1998, we believe its full impact is yet to come. This leads us to believe that the current benign business environment could become less stable. Some early warning economic indicators started flashing cautionary signals toward the end of the second quarter as the economy began to decelerate. US corporate profits were being pressured. The basic fundamental case remains positive, yet investor expectations, at least for the short term, seem to be on the high side. Internationally, the most important factor influencing the markets has been the Asian financial crisis. Thus far, events in the region have not impacted the global economy to the degree that was originally anticipated. Growth continues to be strong in Europe and in select emerging markets. Some industrialized nations have even derived unexpected benefits from the crisis in the form of less expensive imported goods. However, the Asian crisis is not over and, more important, Japan has experienced no economic growth this year -- though there is hope that the announced government stimulus package will be effective. Nonetheless, we believe the steps being taken by the governments should, in the long run, restore their countries' financial health, and the economies and stock markets should return to growth in the longer term. Thank you for your continued confidence in Seligman Portfolios, Inc. We look forward to serving your investment needs in the years ahead. Respectfully, /s/ William C. Morris ----------------------- William C. Morris Chairman J. & W. Seligman & Co. Incorporated SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIO OVERVIEW (unaudited) - ------------------------------------------------------------------------------ LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN BOND PORTFOLIO US GOVERNMENT SECURITIES US Treasury Notes 6-5/8%, 2/15/2007................ $ 300,000 $ 300,000 US GOVERNMENT AGENCY SECURITIES Government National Mortgage Association 6-1/2%, 4/15/2028.... 1,008,064 1,008,064 CORPORATE BONDS AT&T Capital 6-1/4%, 5/15/2001..... 200,000 200,000 Chrysler Financial 6.09%, 4/6/2001. 200,000 200,000 Dell Computer 6.55%, 4/15/2008..... 200,000 200,000 Equifax 6.30%, 7/1/2005............ 200,000 200,000 Philip Morris 7-1/8%, 8/15/2002.... 200,000 200,000 Viacom 7-3/4%, 6/1/2005............ 200,000 200,000 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- US GOVERNMENT SECURITIES US Treasury Bonds 6-5/8%, 2/15/2027................ $500,000 $900,000 US GOVERNMENT AGENCY SECURITIES Federal National Mortgage Association 7-1/2%, 11/1/2026.... 463,195 -- Government National Mortgage Association 7-1/2%, 6/15/2023.... 215,496 -- Government National Mortgage Association 7-1/2%, 3/15/2026.... 269,170 -- CORPORATE BONDS Anixter 8%, 9/15/2003.............. 200,000 -- First Data 6-3/8%, 12/15/2007...... 200,000 -- Geon 6-7/8%, 12/15/2005............ 200,000 -- The Money Store 8.05%, 4/15/2002... 200,000 -- Oryx Energy 8-1/8%, 10/15/2005..... 200,000 -- Owens-Illinois 7.85%, 5/15/2004.... 200,000 -- - ------------------------------------------------------------------------------ PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN CAPITAL PORTFOLIO COMMON STOCKS AutoZone.......................... 17,500 shs. 17,500 shs. Budget Group (Class A)............ 15,200 15,200 Diebold........................... 8,800 8,800 Laidlaw........................... 28,200 28,200 Liz Claiborne..................... 9,200 9,200 Microchip Technology.............. 12,200 12,200 Network Associates................ 5,600 8,400 (1) Omnicare.......................... 9,900 9,900 Proffitt's........................ 11,000 11,000 TJX Companies..................... 8,900 17,800 (2) PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Coca-Cola Enterprises............. 17,600 shs. -- GreenPoint Financial.............. 6,400 -- Gulfstream Aerospace.............. 10,600 -- Humana............................ 15,500 -- MBNA.............................. 15,000 -- McKesson.......................... 5,000 (3) -- Pfizer............................ 3,800 -- Travelers......................... 11,700 -- US Surgical....................... 10,600 -- Washington Mutual................. 6,400 -- - ------------------------------------------------------------------------------ PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN COMMON STOCK PORTFOLIO COMMON STOCKS Baxter International.............. 9,900 9,900 British Petroleum (ADRs).......... 6,600 6,600 Chevron........................... 7,300 7,300 Edison International.............. 22,900 22,900 Exxon............................. 9,500 25,600 GTE............................... 16,200 16,200 Kimberly-Clark.................... 11,700 11,700 Marsh & McLennan.................. 7,900 11,850 (4) May Department Stores............. 12,100 12,100 US WEST Communications Group...... 13,900 13,900 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS AMP............................... 13,400 -- Applied Materials................. 18,700 -- Arrow Electronics................. 16,600 -- Bell Atlantic..................... 6,500 -- Compaq Computer................... 22,500 (5) -- First Union....................... 10,600 -- Illinois Tool Works............... 10,500 -- RJR Nabisco Holdings.............. 27,500 7,300 shs. Sherwin-Williams.................. 17,700 -- TIG Holdings...................... 22,400 -- - ------------- See footnotes on page P-8. P-1 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIO OVERVIEW (unaudited) (continued) - ------------------------------------------------------------------------------ LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO COMMON STOCKS Ascend Communications............. 23,300 23,300 Autodesk.......................... 36,700 36,700 Creative Technology............... 55,100 136,800 Electronic Arts................... 33,500 45,500 International Business Machines........................ 9,100 9,100 SCI Systems....................... 28,600 28,600 Sinclair Broadcast Group (Class A)....................... 22,100 44,200 (6) SMART Modular Technologies........ 42,300 42,300 Xerox............................. 9,600 9,600 Ziff-Davis........................ 57,600 57,600 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Adaptec........................... 35,600 -- Applied Materials................. 38,400 -- Cisco Systems..................... 17,450 17,500 Computer Sciences................. 19,200 -- Gateway 2000...................... 22,000 -- Lexmark International Group (Class A)....................... 27,100 35,200 Parametric Technology............. 27,200 38,900 (7) Read-Rite......................... 74,100 -- Tellabs........................... 17,300 -- VLSI Technology................... 50,000 -- - ------------------------------------------------------------------------------ SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN FRONTIER PORTFOLIO COMMON STOCKS CalEnergy......................... 11,300 28,660 ESG Re............................ 12,700 12,700 Metamor Worldwide................. 10,000 10,000 Microchip Technology.............. 18,800 18,800 Personnel Group of America........ 19,600 42,400 (8) Provant........................... 16,700 16,700 Province Healthcare............... 24,300 24,300 Sinclair Broadcast Group (Class A)....................... 6,300 12,600 (9) UCAR International................ 18,900 28,400 Universal Health Services (Class B)....................... 10,000 10,000 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS AmeriSource Health (Class A)...... 9,730 -- Anchor Gaming..................... 7,800 -- CCA Prison Realty Trust........... 12,800 -- Chancellor Media (Class A)........ 8,954 -- DONCASTERS (ADRs)................. 22,800 -- GTECH Holdings.................... 12,300 -- Gulf South Medical Supply......... 12,400 -- National Surgery Centers.......... 19,575 -- Scherer (R.P.).................... 12,600 -- Synopsys.......................... 11,300 -- - ------------- See footnotes on page P-8. P-2 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- COMMON STOCKS Centros Comerciales Continente.... 4,000 4,000 ConAgra........................... 3,600 3,600 ECIA.............................. 251 251 Hachette Filipacchi Medias........ 400 400 Hellenic Telecommunication Organization.................... 3,750 4,166 (10) Kroger............................ 1,500 1,500 Lilly (Eli)....................... 1,300 1,300 Philip Morris..................... 2,300 2,300 PolyGram.......................... 1,390 1,390 Superdiplo........................ 3,600 3,600 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Autoliv (ADRs).................... 2,100 -- Compaq Computer................... 2,200 (11) -- Desc (ADRs)....................... 2,650 -- Elsevier.......................... 4,500 -- Heineken.......................... 395 -- Intel............................. 800 -- Kalmar Industries................. 2,300 -- MBNA.............................. 1,200 2,275 MOL Magyar Olaj-es Gazipari (GDRs)................. 3,460 1,740 Pfizer............................ 500 1,300 - ------------------------------------------------------------------------------ DIVERSIFICATION OF NET ASSETS* JUNE 30, 1998
PERCENT OF NET ASSETS ---------------------- JUNE 30, DECEMBER 31, ISSUES COST VALUE 1998 1997 ------ ---------- ---------- --------- ----------- COMMON STOCKS Aerospace............................................ 1 $ 50,559 $ 52,050 0.6 1.0 Automotive and Related............................... 5 195,134 221,584 2.7 2.9 Business Goods and Services.......................... 7 506,410 598,666 7.4 6.8 Computer and Technology Related...................... 8 390,419 627,340 7.7 9.6 Construction and Property............................ 2 93,620 130,101 1.6 1.7 Consumer Goods and Services.......................... 11 695,899 853,973 9.6 8.9 Diversified.......................................... 1 92,572 118,300 1.5 3.3 Drugs and Health Care................................ 10 794,934 937,343 11.6 11.0 Electric and Gas Utilities........................... 3 79,684 49,470 0.6 0.6 Electronics.......................................... 5 226,383 240,233 3.7 3.3 Entertainment and Leisure............................ 8 530,627 616,883 7.1 6.2 Financial Services................................... 9 517,068 637,199 7.9 9.0 Industrial Goods and Services........................ 2 137,645 167,823 1.3 2.8 Manufacturing and Industrial Equipment............... 1 20,281 6,356 0.1 0.9 Publishing........................................... 1 95,758 115,494 1.4 1.3 Resources............................................ 3 134,082 103,843 1.3 4.3 Restaurants.......................................... 1 100,508 114,317 1.4 0.9 Retailing............................................ 5 315,104 400,639 6.4 2.9 Support Services..................................... 2 102,202 102,703 1.3 1.9 Telecommunications................................... 9 562,128 722,425 8.9 8.1 Tobacco.............................................. 2 165,194 203,086 2.5 1.9 Transportation....................................... 3 232,663 315,994 3.9 4.5 --- ---------- ---------- ----- ----- 99 6,038,874 7,335,822 90.5 93.8 Other Assets Less Liabilities........................ 3 663,643 768,227 9.5 6.2 --- ---------- ---------- ----- ----- NET ASSETS........................................... 102 $6,702,517 $8,104,049 100.0 100.0 === ========== ========== ===== ===== - ------------- See footnotes on page P-8.
P-3 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIO OVERVIEW (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- COMMON STOCKS Barnes & Noble.................... 3,200 3,200 EduTrek International (Class A)... 3,900 4,000 Etam Developpement................ 1,659 1,659 Genset (ADRs)..................... 2,840 2,840 Horizon Medical Products.......... 10,000 10,000 ICON (ADRs)....................... 5,000 5,000 Microchip Technology.............. 4,000 4,000 Pre-Paid Legal Services........... 3,200 3,200 Province Healthcare............... 4,600 4,600 UCAR International................ 5,800 5,800 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Berg Electronics.................. 11,000 -- FactSet Research Systems.......... 4,700 1,200 GTECH Holdings.................... 3,700 -- Kendle International.............. 5,000 -- NCS HealthCare (Class A).......... 4,800 1,300 Otra.............................. 9,140 -- Rauma............................. 8,231 -- Source Services................... 5,700 -- Universal Outdoor Holdings........ 6,000 -- Zag Industries.................... 14,200 -- - ------------------------------------------------------------------------------ DIVERSIFICATION OF NET ASSETS* JUNE 30, 1998
PERCENT OF NET ASSETS ---------------------- JUNE 30, DECEMBER 31, ISSUES COST VALUE 1998 1997 ------ ---------- ---------- --------- ----------- COMMON STOCKS Advertising.......................................... 2 $ 124,676 $ 110,160 0.5 2.0 Automotive Parts Manufacturing....................... 5 407,955 700,434 3.0 2.7 Building Materials................................... 2 318,799 222,252 0.9 1.4 Business Services.................................... 22 1,694,286 2,197,929 9.4 10.1 Capital Goods........................................ 9 502,989 451,804 1.9 2.3 Chemicals............................................ 6 229,563 240,646 1.0 1.2 Computer Software.................................... 12 718,897 1,723,076 7.3 5.1 Construction and Property............................ 10 1,112,671 1,426,561 6.1 6.3 Consumer Goods and Services.......................... 26 1,570,453 1,910,938 8.2 6.8 Distributors......................................... 2 23,674 20,830 0.1 0.1 Drugs and Health Care................................ 22 1,241,807 1,398,686 6.0 6.5 Electric Utilities................................... 3 377,201 391,728 1.7 0.2 Electrical Distribution.............................. 2 108,371 156,438 0.7 0.6 Electronics.......................................... 12 575,768 436,721 1.9 5.8 Energy............................................... 1 32,128 19,013 0.1 0.9 Financial Services................................... 17 830,555 973,790 4.2 4.6 Independent Power Producers.......................... -- -- -- -- 1.2 Industrial Goods and Services........................ 8 522,442 633,909 2.7 3.1 Leisure and Hotels................................... 4 186,448 124,999 0.5 1.5 Manufacturing........................................ 25 1,407,715 1,688,008 7.2 7.6 Media................................................ 15 1,132,620 1,399,023 6.0 5.3 Medical Products and Technology...................... 11 698,233 613,999 2.6 1.9 Metals............................................... 3 186,569 139,332 0.6 0.9 Paper and Printing................................... 2 119,489 100,256 0.4 0.5 Resources............................................ 3 84,424 72,778 0.3 -- Restaurants.......................................... 4 187,523 331,654 1.4 1.4 Retailing............................................ 18 1,252,234 1,391,459 5.9 4.1 Support Services..................................... 3 288,795 303,636 1.3 1.6 Technology........................................... 20 1,270,036 1,148,899 4.9 3.7 Telecommunications................................... 10 569,814 662,930 2.8 1.6 Transportation....................................... 6 408,662 500,929 2.1 2.6 - -------------- See footnotes on page P-8.
P-4 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) DIVERSIFICATION OF NET ASSETS* (continued) JUNE 30, 1998
PERCENT OF NET ASSETS ---------------------- JUNE 30, DECEMBER 31, ISSUES COST VALUE 1998 1997 ------ ---------- ---------- --------- ----------- COMMON STOCKS (continued) Veterinary Products............................... 1 $ 140,050 $ 108,156 0.5 0.5 Miscellaneous..................................... 1 26,500 31,820 0.1 0.2 --- ----------- ----------- ----- ----- 287 18,351,347 21,632,793 92.3 94.3 Other Assets Less Liabilities..................... 5 1,846,771 1,808,864 7.7 5.7 --- ----------- ----------- ----- ----- NET ASSETS........................................ 292 $20,198,118 $23,441,657 100.0 100.0 === =========== =========== ===== =====
- ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- COMMON STOCKS Cable & Wireless............... 6,000 6,000 Creative Technology............ 3,000 5,500 Electronic Arts................ 1,800 1,800 General Electric............... 8,700 8,700 Genset (ADRs).................. 1,500 1,500 HNC Software................... 1,400 1,400 Mannesmann..................... 900 9,000 (12) NEC............................ 5,000 5,000 Novartis....................... 50 50 Telecomunicacoes Brasileiras "Telebras" (ADRs)........... 500 500 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Admiral........................ 1,680 5,320 AMF Bowling.................... 9,000 -- Cisco Systems.................. 750 -- LHS Group...................... 1,000 -- Misys.......................... 500 1,100 MMC Networks................... 6,000 -- Philips Electronics............ 1,150 -- Read-Rite...................... 1,900 -- Dr. Solomon's Group (ADRs)..... 1,650 -- VERO Group..................... 12,500 -- DIVERSIFICATION OF NET ASSETS* JUNE 30, 1998
PERCENT OF NET ASSETS ---------------------- JUNE 30, DECEMBER 31, ISSUES COST VALUE 1998 1997 ------ ---------- ---------- --------- ----------- COMMON STOCKS Computer and Business Services..................... 9 $ 364,049 $ 587,230 11.0 13.7 Computer Hardware/Peripherals...................... 9 475,926 579,335 10.8 10.3 Computer Software.................................. 19 902,887 1,175,785 22.0 15.0 Distributors....................................... 2 61,114 30,980 0.6 1.3 Electronics........................................ 9 398,020 336,912 6.3 9.5 Electronics Capital Equipment...................... 11 659,237 521,605 9.8 8.9 Media.............................................. 2 115,616 108,826 2.0 1.6 Medical Products and Technology.................... 7 360,499 360,149 6.8 4.2 Networking/Communications Infrastructure........... 6 274,936 344,088 6.4 6.7 Semiconductors..................................... 5 265,516 214,062 4.0 5.3 Telecommunications................................. 8 351,539 474,099 8.9 3.8 Miscellaneous...................................... 1 46,045 44,807 0.8 6.1 --- ---------- ---------- ----- ----- 88 4,275,384 4,777,878 89.4 86.4 Other Assets Less Liabilities...................... 2 567,421 567,421 10.6 13.6 --- ---------- ---------- ----- ----- NET ASSETS......................................... 90 $4,842,805 $5,345,299 100.0 100.0 === ========== ========== ===== ===== - -------------- See footnotes on page P-8.
P-5 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIO OVERVIEW (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- COMMON STOCKS Alcatel........................... 836 836 Alstom............................ 3,005 3,005 Bayerische Motoren Werke "BMW".... 119 119 Deutsche Bank..................... 1,721 1,721 Lloyd TSB......................... 7,500 7,500 Mitsui............................ 50,000 50,000 Nestle............................ 69 69 Samsung Electronics............... 1,950 1,950 Schneider......................... 1,408 1,408 Vendex International.............. 1,562 1,562 SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- COMMON STOCKS Banque Nationale de Paris......... 2,209 -- Credit Communal Holding/Dexia..... 990 -- Desc (ADRs)....................... 5,423 -- Endesa............................ 6,415 615 Magyar Tavkozlesi "Matav" (ADRs).. 2,740 4,100 Novo Nordisk (Class B)............ 546 -- Roche Holdings.................... 13 -- SKW Trostberg..................... 2,556 -- Thyssen........................... 525 -- Usinor Sacilor.................... 5,884 -- DIVERSIFICATION OF NET ASSETS* JUNE 30, 1998
PERCENT OF NET ASSETS ---------------------- JUNE 30, DECEMBER 31, ISSUES COST VALUE 1998 1997 ------ ---------- ---------- --------- ----------- COMMON STOCKS Banking.............................................. 14 $1,189,460 $ 1,570,169 14.6 9.6 Building Materials................................... 1 60,524 50,242 0.5 0.5 Business Services.................................... 4 96,068 68,090 0.6 0.7 Chemicals............................................ 5 323,262 419,861 3.9 4.6 Construction and Property............................ 3 267,470 317,753 3.0 2.7 Consumer Products.................................... 5 373,220 478,593 4.5 0.8 Distributors......................................... 1 259,996 269,484 2.5 -- Electronics.......................................... 5 427,319 403,842 3.8 2.1 Financial Services................................... 6 204,422 165,318 1.5 2.5 Health and Household................................. 4 327,427 313,649 2.9 7.1 Industrial Goods and Services........................ 8 488,832 689,551 6.4 6.3 Insurance............................................ 4 421,929 736,881 6.9 5.6 Leisure and Hotels................................... 2 228,440 378,652 3.5 3.2 Manufacturing........................................ 6 399,471 405,847 3.8 4.6 Media................................................ 3 112,923 176,300 1.6 4.0 Metals............................................... 1 5,199 4,754 0.1 2.3 Resources............................................ 7 635,967 674,676 6.3 9.5 Restaurants.......................................... 1 25,850 24,793 0.2 0.2 Retailing............................................ 10 646,147 797,940 7.4 5.2 Telecommunications................................... 12 833,182 1,140,907 10.6 11.3 Tobacco.............................................. 2 165,732 196,641 1.8 2.0 Transportation....................................... 5 309,842 463,545 4.3 3.6 Utilities............................................ 6 423,528 464,420 4.4 5.7 Miscellaneous........................................ 4 77,116 68,269 0.6 0.2 --- ---------- ----------- ----- ----- 119 8,303,326 10,280,177 95.7 94.3 Other Assets Less Liabilities........................ 1 466,089 466,089 4.3 5.7 --- ---------- ----------- ----- ----- NET ASSETS........................................... 120 $8,769,415 $10,746,266 100.0 100.0 === ========== =========== ===== ===== - -------------- See footnotes on page P-8.
P-6 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 1998 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN HIGH-YIELD BOND PORTFOLIO CORPORATE BONDS Advanstar Communications 9-1/4%, 5/1/2008............. $225,000 $225,000 Facilicom International 10-1/2%, 1/15/2008........... 325,000 325,000 Global Health Sciences 11%, 5/1/2008..................... 275,000 275,000 Great Lakes Carbon 10-1/4%, 5/15/2008.................... 200,000 200,000 Packaged Ice 9-3/4%, 2/1/2005... 200,000 200,000 Pinnacle Holdings 0% (10%), 3/15/2008.................... 550,000 550,000 PSINet 10%, 2/15/2005.......... 250,000 250,000 PREFERRED STOCKS Liberty Group Publishing 14-3/4% 8,868 shs. 8,868 shs. Nebco Evans Holdings 11-1/4% ... 2,566 2,566 Nextel Communications 11-1/8%... 255 255 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- CORPORATE BONDS Gorges/Quik-to-Fix Foods 11-1/2%, 12/1/2006.............. $150,000 $100,000 IXC Communications 12-1/2%, 10/1/2005....................... 325,000 -- Mobile Telecommunication Technologies 13-1/2%, 12/15/2002............. 150,000 225,000 Petersen Publishing 11-1/8%, 11/15/2006............. 110,000 -- Plitt Theaters 10-7/8%, 6/15/2004.. 125,000 -- PriCellular Wireless 10-3/4%, 11/1/2004....................... 225,000 -- Showboat 13%, 8/1/2009............. 125,000 -- SUBORDINATED CONVERTIBLE BONDS..... EMC 3-1/4%, 3/15/2002.............. 75,000 -- Xilinx 5-1/4%, 11/1/2002........... 150,000 -- CONVERTIBLE PREFERRED STOCKS Chancellor Media $3................ 1,376 shs. -- - ------------------------------------------------------------------------------ PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS ADDITIONS INCREASE 6/30/98 - --------- -------- -------- SELIGMAN INCOME PORTFOLIO COMMON STOCKS Texaco.......................... 3,200 shs. 3,200 shs. CORPORATE BONDS Chrysler Financial 6.09%, 4/6/2001..................... $300,000 $300,000 Consumers Energy 6-3/8%, 2/1/2008..................... 300,000 300,000 Dell Computer 6.55%, 4/15/2008.................... 400,000 400,000 Petroleum Geo-Services 7-1/2%, 3/31/2007............ 400,000 400,000 Time Warner 7-3/4%, 6/15/2005... 500,000 500,000 Viacom 7-3/4%, 6/1/2005......... 300,000 300,000 US GOVERNMENT SECURITIES US Treasury Notes 5-3/4%, 11/30/2002................... 500,000 500,000 US Treasury Notes 6-5/8%, 5/15/2007.................... 500,000 500,000 US Treasury Notes 6-1/2%, 10/15/2016................... 300,000 300,000 PRINCIPAL AMOUNT OR SHARES ---------------------- HOLDINGS REDUCTIONS DECREASE 6/30/98 - ---------- -------- -------- CORPORATE BONDS General Motors Acceptance 5-5/8%, 2/1/1999............. $250,000 -- Owens-Illinois 7.85%, 5/15/2004.................... 300,000 -- US GOVERNMENT SECURITIES US Treasury Notes 7-3/4%, 12/31/1999................... 500,000 -- SUBORDINATED CONVERTIBLE BONDS Masco Tech 4-1/2%, 12/15/2003... 300,000 -- Santa Fe Pipelines 11.162%, 8/15/2010........... 250,000 -- Xilinx 5-1/4%, 11/1/2002........ 250,000 -- CONVERTIBLE PREFERRED STOCKS Browning-Ferris Industries 7-1/4% 7,500 shs. -- IKON Office Solutions $5.04..... 3,500 -- McKesson 5%..................... 4,000 -- Sea Containers $4.00............ 5,000 -- - ------------- See footnotes on page P-8. P-7 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIO OVERVIEW (unaudited) (continued) - ------------------------------------------------------------------------------ - -------------- 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 Henderson Portfolios because their portfolio holdings are listed by country rather than by industry in the "Portfolios of Investments." (1) Includes 2,800 shares received as a result of a 3-for-2 stock split. (2) Includes 8,900 shares received as a result of a 2-for-1 stock split. (3) Includes 2,500 shares received as a result of a 2-for-1 stock split. (4) Includes 3,950 shares received as a result of a 3-for-2 stock split. (5) Includes 11,250 shares received as a result of a 2-for-1 stock split. (6) Includes 22,100 shares received as a result of a 2-for-1 stock split. (7) Includes 34,400 shares received as a result of a 2-for-1 stock split. (8) Includes 12,700 shares received as a result of a 2-for-1 stock split. (9) Includes 6,300 shares received as a result of a 2-for-1 stock split. (10) Includes 416 shares received as a result of a 1-for-9 stock split. (11) Includes 1,100 shares received as a result of a 2-for-1 stock split. (12) Includes 8,100 shares received as a result of a 10-for-1 stock split. P-8 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN BOND PORTFOLIO PRINCIPAL AMOUNT VALUE ----------- ----------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 53.5% US GOVERNMENT SECURITIES -- 38.3% US Treasury Bonds 8-3/4%, 5/15/2020.............. $ 500,000 $ 686,876 US Treasury Bonds 6-5/8%, 2/15/2027.............. 900,000 1,017,001 US Treasury Notes 6-1/4%, 10/31/2001............. 300,000 306,281 US Treasury Notes 6-1/4%, 6/30/2002.............. 200,000 205,000 US Treasury Notes 6-5/8%, 5/15/2007.............. 300,000 322,500 ----------- Total US Government Securities (Cost $2,428,513)... 2,537,658 ----------- US GOVERNMENT AGENCY SECURITIES -- 15.2% (Cost $1,005,251) Government National Mortgage Association 6-1/2%, 4/15/2028+. 1,008,064 1,006,805 ----------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $3,433,764).............. 3,544,463 ----------- CORPORATE BONDS -- 41.6% AT&T Capital 6-1/4%, 5/15/2001.... 200,000 200,196 Associates Corp. of North America 6-1/2%, 8/15/2002...... 200,000 203,260 Barrett Resources 7.55%, 2/1/2007....................... 200,000 209,615 PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS (continued) Capital One Bank 8-1/8%, 3/1/2000............... $ 150,000 $ 154,613 Chrysler Financial 6.09%, 4/6/2001................ 200,000 200,642 Dell Computer 6.55%, 4/15/2008............... 200,000 203,120 Equifax 6.30%, 7/1/2005........... 200,000 199,328 First USA Bank 5-3/4%, 1/15/1999.............. 100,000 99,978 Loewen Group International 7-1/2%, 4/15/2001.............. 200,000 203,708 Petroleum Geo-Services 7-1/2%, 3/31/2007.............. 200,000 217,585 Philip Morris 7-1/8%, 8/15/2002... 200,000 205,882 Time Warner 9-1/8%, 1/15/2013..... 200,000 246,682 Viacom 7-3/4%, 6/1/2005........... 200,000 214,247 Woolworth 7%, 6/1/2000............ 200,000 202,833 ----------- TOTAL CORPORATE BONDS (Cost $2,699,074).............. 2,761,689 ----------- SHORT-TERM HOLDINGS -- 3.8% (Cost $250,000)................ 250,000 ----------- TOTAL INVESTMENTS -- 98.9% (Cost $6,382,838).............. 6,556,152 OTHER ASSETS LESS LIABILITIES-- 1.1%............. 74,402 ----------- NET ASSETS-- 100.0%............... $ 6,630,554 ----------- ----------- - ------------- + Investments in mortgage-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying mortgage 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-9 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN CAPITAL PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 89.3% BASIC MATERIALS -- 1.7% Corn Products International*..... 4,200 $ 142,275 Minerals Technologies............ 5,000 254,375 ----------- 396,650 ----------- CAPITAL GOODS -- 7.2% Diebold.......................... 8,800 254,100 Molex............................ 7,300 182,956 Rayovac*......................... 20,900 474,169 RELTEC*.......................... 6,300 283,500 U.S. Filter*..................... 9,200 258,175 Vishay Intertechnology*.......... 13,345 239,376 ----------- 1,692,276 ----------- COMMUNICATION SERVICES -- 4.2% Century Telephone Enterprises.... 9,900 454,163 Frontier......................... 7,900 248,850 Tele-Communications (Series A) TCI Ventures Group*........... 14,000 280,437 ----------- 983,450 ----------- CONSUMER CYCLICALS -- 21.9% Authentic Fitness................ 13,200 208,725 AutoZone*........................ 17,500 558,906 Budget Group (Class A)*.......... 15,200 485,450 Echlin........................... 3,200 157,000 Harley-Davidson.................. 7,600 294,500 Interpublic Group of Companies..................... 9,900 600,806 Jones Apparel Group*............. 15,200 555,750 Laidlaw (Canada)................. 28,200 343,687 Liz Claiborne.................... 9,200 480,700 Lowe's Companies................. 9,200 373,175 Proffitt's*...................... 11,000 444,125 Snyder Communications*........... 5,200 228,800 TJX Companies.................... 17,800 429,425 ----------- 5,161,049 ----------- CONSUMER STAPLES -- 12.2% Aurora Foods*.................... 7,000 147,875 Cardinal Health.................. 3,000 281,250 CBS.............................. 17,700 561,975 Clear Channel Communications*............... 1,000 109,125 Clorox........................... 3,300 314,738 Dial............................. 14,500 376,094 ITT Educational Services*........ 10,200 328,950 SHARES VALUE ----------- ----------- CONSUMER STAPLES (continued) Kroger*.......................... 6,600 $ 282,975 Newell........................... 5,900 293,894 Sinclair Broadcast Group (Class A)*.................... 6,000 172,125 ----------- 2,869,001 ----------- ENERGY -- 5.0% Barrett Resources*............... 9,400 351,912 Camco International.............. 3,400 264,775 Cooper Cameron*.................. 3,600 183,600 Tosco............................ 6,700 196,812 Transocean Offshore.............. 4,300 191,350 ----------- 1,188,449 ----------- FINANCIAL SERVICES -- 12.7% AFLAC............................ 8,600 260,687 Life Re.......................... 3,600 295,200 Nationwide Financial Services (Class A)..................... 8,000 408,000 Ocwen Financial*................. 10,500 282,188 Old Republic International....... 8,850 259,416 Progressive (Ohio)............... 3,700 521,700 Provident Companies.............. 7,900 272,550 Schwab (Charles)................. 11,600 377,000 SouthTrust....................... 6,950 302,759 ----------- 2,979,500 ----------- HEALTH CARE -- 8.3% Biogen*.......................... 4,300 210,700 Covance*......................... 21,700 488,250 HEALTHSOUTH*..................... 8,000 213,500 Omnicare......................... 9,900 377,437 Universal Health Services (Class B)*.................... 11,500 671,312 ----------- 1,961,199 ----------- TECHNOLOGY -- 15.0% ADC Telecommunications*.......... 7,200 263,025 BMC Software*.................... 8,000 415,750 Cadence Design Systems*.......... 7,200 225,000 Fiserv*.......................... 9,600 407,700 Gartner Group (Class A)*......... 14,300 500,053 HNC Software*.................... 6,300 257,316 Maxim Integrated Products*....... 10,500 333,047 Microchip Technology*............ 12,200 319,488 Network Associates*.............. 8,400 401,888 - ------------- * Non-income producing security. See Notes to Financial Statements. P-10 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN CAPITAL PORTFOLIO (continued) SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- TECHNOLOGY (continued) Synopsys*........................ 8,600 shs. $ 393,719 ----------- 3,516,986 ----------- UTILITIES -- 1.1% AES*............................. 4,700 247,044 ----------- TOTAL COMMON STOCKS (Cost $17,211,566)............ 20,995,604 ----------- SHORT-TERM HOLDINGS -- 11.0% REPURCHASE AGREEMENTS -- 8.5% (Cost $2,000,000) HSBC Securities, Inc. 5%, dated 6/24/1998, maturing 7/1/1998 collateralized by: $1,993,000 US Treasury Notes 5-7/8%, 11/15/2005, with a fair market value of $2,044,653.............. $ 2,000,000 2,000,000 PRINCIPAL AMOUNT VALUE ----------- ----------- FIXED TIME DEPOSITS -- 2.5% (Cost $600,000) First National Bank of Chicago, Grand Cayman 5.40%, dated 6/30/1998, maturing 7/6/1998.............. $ 600,000 $ 600,000 ----------- TOTAL SHORT-TERM HOLDINGS (Cost $2,600,000).............. 2,600,000 ----------- TOTAL INVESTMENTS -- 100.3% (Cost $19,811,566)............. 23,595,604 OTHER ASSETS LESS LIABILITIES-- (0.3)%........... (82,126) ----------- NET ASSETS-- 100.0%............... $23,513,478 ----------- ----------- - ------------------------------------------------------------------------------ SELIGMAN CASH MANAGEMENT PORTFOLIO ANNUALIZED YIELD ON PRINCIPAL PURCHASE DATE AMOUNT VALUE ------------- ---------- ---------- US GOVERNMENT SECURITIES -- 69.4 % US Treasury Bills, 7/23/1998............. 5.07% $ 700,000 $ 697,887 US Treasury Notes, 4-3/4%, 8/31/1998..... 5.30 1,500,000 1,498,547 US Treasury Notes, 4-3/4%, 9/30/1998..... 5.36 2,500,000 2,496,058 US Treasury Notes, 5-7/8%, 10/31/1998.... 5.35 1,700,000 1,702,634 ---------- TOTAL US GOVERNMENT SECURITIES (Cost $6,395,126)..... 6,395,126 ---------- COMMERCIAL PAPER -- 27.4% American Express Credit Corp., 7/13/1998...... 5.54 500,000 499,088 American General Finance Corp., 8/6/1998....... 5.53 490,000 487,329 ANNUALIZED YIELD ON PRINCIPAL PURCHASE DATE AMOUNT VALUE ------------- ---------- ---------- COMMERCIAL PAPER (continued) Associates Corp. of North America, 8/28/1998 5.57% $ 530,000 $ 525,304 General Electric Capital Corp., 9/4/1998....... 5.58 530,000 524,737 Norwest Financial, Inc., 8/10/1998............. 5.55 490,000 487,022 ---------- TOTAL COMMERCIAL PAPER (Cost $2,523,480)................ 2,523,480 ---------- OTHER INVESTMENTS (Cost $3,970).................... 3,897 ---------- TOTAL INVESTMENTS -- 96.8% (Cost $8,922,576)................ 8,922,503 OTHER ASSETS LESS LIABILITIES-- 3.2%............... 290,453 ---------- NET ASSETS-- 100.0%................. $9,212,956 ---------- ---------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-11 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN COMMON STOCK PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 96.8% AEROSPACE/DEFENSE -- 3.2% General Dynamics................. 11,400 $ 530,100 United Technologies.............. 14,200 1,313,500 ----------- 1,843,600 ----------- AUTOMOTIVE AND RELATED -- 4.8% Chrysler......................... 21,100 1,189,513 Dana............................. 8,700 465,450 Eaton............................ 5,500 427,625 Harley-Davidson.................. 18,200 705,250 ----------- 2,787,838 ----------- BASIC MATERIALS -- 0.8% Aluminum Company of America....................... 7,500 494,531 ----------- BUSINESS SERVICES AND SUPPLIES -- 1.3% Xerox............................ 7,400 752,025 ----------- CHEMICALS -- 2.2% duPont (E.I.) de Nemours......... 9,100 679,088 Goodrich (B.F.).................. 12,400 615,350 ----------- 1,294,438 ----------- COMPUTER GOODS AND SERVICES -- 4.0% International Business Machines...................... 9,100 1,044,794 Microsoft*....................... 12,000 1,300,875 ----------- 2,345,669 ----------- CONSUMER GOODS AND SERVICES -- 9.6% Anheuser-Busch................... 17,900 844,656 Avon Products.................... 6,800 527,000 Coca-Cola........................ 11,700 1,000,350 General Mills.................... 7,900 540,162 PepsiCo.......................... 18,200 749,612 Philip Morris.................... 23,400 921,375 Procter & Gamble................. 9,100 828,669 RJR Nabisco Holdings............. 7,300 173,375 ----------- 5,585,199 ----------- DRUGS AND HEALTH CARE -- 11.0% Abbott Laboratories.............. 16,600 678,525 American Home Products........... 19,800 1,024,650 Baxter International............. 9,900 532,744 SHARES VALUE ----------- ----------- DRUGS AND HEALTH CARE (continued) Bristol-Myers Squibb............. 9,700 $ 1,114,894 Johnson & Johnson................ 9,900 730,125 Merck............................ 7,800 1,043,250 Pfizer........................... 4,900 532,569 Schering-Plough.................. 8,700 797,137 ----------- 6,453,894 ----------- ELECTRIC AND GAS UTILITIES -- 3.9% Edison International............. 22,900 676,981 Unicom*.......................... 17,600 617,100 The Williams Cos................. 29,100 982,125 ----------- 2,276,206 ----------- ELECTRONICS -- 1.6% Raytheon (Class B)............... 16,000 946,000 ----------- ENERGY -- 10.5% British Petroleum (ADRs) (United Kingdom)....... 6,600 582,450 Chevron.......................... 7,300 606,356 Exxon............................ 25,600 1,825,600 Mobil............................ 18,500 1,417,562 Royal Dutch Petroleum (Netherlands)................. 15,700 860,556 Schlumberger..................... 3,000 204,937 Texaco........................... 11,000 656,562 ----------- 6,154,023 ----------- FINANCE AND INSURANCE -- 16.3% ACE (Bermuda).................... 13,700 534,300 Ahmanson (H.F.).................. 12,200 866,200 American General................. 15,200 1,082,050 American International Group..... 8,400 1,226,400 BankAmerica...................... 8,400 726,075 Bank of New York................. 16,400 995,275 Citicorp......................... 3,042 454,019 Federal National Mortgage Association................... 10,900 662,175 Marsh & McLennan................. 11,850 716,184 Mellon Bank...................... 11,400 793,725 St. Paul Companies............... 16,900 710,856 Travelers........................ 12,400 751,750 ----------- 9,519,009 ----------- FOOD -- 2.9% ConAgra.......................... 27,300 865,069 Sara Lee......................... 14,800 827,875 ----------- 1,692,944 ----------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-12 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN COMMON STOCK PORTFOLIO (continued) SHARES VALUE ----------- ----------- MACHINERY AND INDUSTRIAL EQUIPMENT -- 4.7% GATX............................. 11,600 $ 508,950 General Electric................. 24,300 2,211,300 ----------- 2,720,250 ----------- METALS AND MINING -- 0.8% Allegheny Teledyne............... 20,900 478,088 ----------- PAPER AND PACKAGING -- 3.5% Fort James....................... 13,300 591,850 Kimberly-Clark................... 11,700 536,738 Mead............................. 16,400 520,700 Union Camp....................... 7,600 377,150 ----------- 2,026,438 ----------- PRINTING AND PUBLISHING -- 0.7% Gannett.......................... 6,100 433,481 ----------- RETAIL TRADE -- 3.9% May Department Stores............ 12,100 792,550 Penney (J.C.).................... 11,200 809,900 Wal-Mart Stores.................. 10,800 656,100 ----------- 2,258,550 ----------- TECHNOLOGY -- 1.2% Intel............................ 9,700 718,709 ----------- TELECOMMUNICATIONS -- 2.8% American Telephone & Telegraph..................... 5,700 325,613 SHARES VALUE ----------- ----------- TELECOMMUNICATIONS (continued) Sprint........................... 5,900 $ 415,950 WorldCom*........................ 18,500 894,359 ----------- 1,635,922 ----------- TELEPHONE UTILITIES -- 4.9% Ameritech........................ 14,600 655,175 GTE.............................. 16,200 901,125 SBC Commuications................ 16,300 652,000 US WEST Communications Group......................... 13,900 653,300 ----------- 2,861,600 ----------- TRANSPORTATION -- 0.8% Norfolk Southern ................ 15,900 474,019 ----------- MISCELLANEOUS/ DIVERSIFIED -- 1.4% AlliedSignal .................... 17,900 794,313 ----------- TOTAL COMMON STOCKS (Cost $44,963,531)............ 56,546,746 SHORT-TERM HOLDINGS -- 3.9% (Cost $2,300,000)............. 2,300,000 ----------- TOTAL INVESTMENTS -- 100.7% (Cost $47,263,531)............ 58,846,746 OTHER ASSETS LESS LIABILITIES-- (0.7)%.......... (404,822) ----------- NET ASSETS-- 100.0%.............. $58,441,924 ----------- ----------- - ------------------------------------------------------------------------------ SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 95.7% COMMUNICATIONS INFRASTRUCTURE -- 5.8% Aspect Telecommunications*....... 31,900 $ 875,256 Cisco Systems*................... 17,500 1,611,641 ECI Telecommunications (Israel).. 45,200 1,711,950 Excel Switching*................. 50,000 1,246,875 Oak Industries*.................. 16,600 587,225 ----------- 6,032,947 ----------- SHARES VALUE ----------- ----------- COMPUTER HARDWARE/ PERIPHERALS -- 18.3% American Power Conversion*....... 39,400 $ 1,177,075 Apex PC Solutions................ 13,200 367,950 Creative Technology* (Singapore)................... 136,800 1,697,175 Electronics for Imaging*......... 88,400 1,861,925 EMC*............................. 134,800 6,040,725 Encad*........................... 18,500 251,484 In Focus Systems*................ 15,400 109,244 - ------------- * Non-income producing security. See Notes to Financial Statements. P-13 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued) SHARES VALUE ----------- ----------- COMPUTER HARDWARE/ PERIPHERALS (continued) Lexmark International Group (Class A)*.................... 35,200 $ 2,147,200 SMART Modular Technologies*...... 42,300 622,603 Splash Technology Holdings*...... 17,200 295,087 STB Systems*..................... 21,900 272,381 Storage Technology*.............. 58,600 2,541,775 Unisys*.......................... 27,800 785,350 Xerox............................ 9,600 975,600 ----------- 19,145,574 ----------- COMPUTER SOFTWARE -- 21.3% 3Dfx Interactive*................ 20,900 357,259 3DO*............................. 41,400 132,609 Activision*...................... 15,400 159,294 ANSYS*........................... 21,200 206,700 Autodesk......................... 36,700 1,414,097 Broderbund Software*............. 9,700 221,281 Cadence Design Systems*.......... 42,600 1,331,250 Citrix Systems*.................. 20,700 1,416,009 Computer Associates International................. 16,100 894,556 Compuware*....................... 36,700 1,875,141 Electronic Arts*................. 45,500 2,459,844 The Learning Company*............ 36,300 1,075,387 Microsoft*....................... 3,900 422,784 Network Associates*.............. 73,800 3,530,869 Parametric Technology*........... 38,900 1,053,947 Platinum Technology*............. 37,500 1,072,266 Structural Dynamics Research*..................... 63,700 1,467,091 Synopsys*........................ 53,037 2,428,100 Tecnomatix Technologies* (Israel)...................... 9,500 190,297 VERITAS Software*................ 13,500 558,141 ----------- 22,266,922 ----------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 2.8% ADFlex Solutions*................ 7,800 69,712 Hadco*........................... 21,000 489,562 Jabil Circuit*................... 13,500 446,344 Sanmina*......................... 19,500 842,766 SCI Systems*..................... 28,600 1,076,075 ----------- 2,924,459 ----------- ELECTRONICS CAPITAL EQUIPMENT -- 10.3% Asyst Technologies*.............. 19,300 242,456 SHARES VALUE ----------- ----------- ELECTRONICS CAPITAL EQUIPMENT (continued) Cognex*.......................... 49,900 $ 930,947 Credence Systems*................ 42,800 814,537 Electro Scientific Industries*... 21,300 674,278 Etec Systems*.................... 36,800 1,296,050 International Business Machines...................... 9,100 1,044,794 KLA-Tencor*...................... 34,300 950,753 Kulicke & Soffa Industries*...... 31,300 530,144 Novellus Systems*................ 42,400 1,514,475 Orbotech* (Israel)............... 24,900 903,403 Photronics*...................... 6,100 134,581 Teradyne*........................ 62,800 1,679,900 ----------- 10,716,318 ----------- INFORMATION SERVICES -- 6.1% BISYS Group*..................... 19,000 779,594 First Data....................... 51,900 1,728,919 Galileo International............ 15,600 702,975 Gartner Group (Class A)*......... 53,800 1,881,319 Information Resources*........... 30,700 568,909 Whittman-Hart*................... 14,700 712,031 ----------- 6,373,747 ----------- MEDIA -- 16.6% Belo (A.H.) (Class A)............ 37,800 921,375 Cablevision Systems (Class A)*... 6,600 551,100 CBS.............................. 113,300 3,597,275 Chancellor Media*................ 66,600 3,307,106 CKS Group*....................... 10,000 179,375 Clear Channel Communications*............... 21,673 2,365,066 Cox Radio (Class A)*............. 15,500 670,375 Lamar Advertising (Class A)*..... 10,600 378,287 MediaOne Group*.................. 9,800 430,587 Outdoor Systems*................. 28,500 798,000 Sinclair Broadcast Group (Class A)*.................... 44,200 1,267,987 Time Warner...................... 18,900 1,614,769 USA Networks*.................... 18,800 472,937 Ziff-Davis*...................... 57,600 799,200 ----------- 17,353,439 ----------- SEMICONDUCTORS -- 7.5% Amkor Technology*................ 94,000 878,313 Dallas Semiconductor............. 29,200 905,200 DSP Communications*.............. 10,300 141,625 Integrated Device Technology*.... 40,800 291,338 Lattice Semiconductor*........... 43,200 1,227,150 - -------------- * Non-income producing security. See Notes to Financial Statements. P-14 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued) SHARES VALUE -------- ---------- SEMICONDUCTORS (continued) Maxim Integrated Products*....... 49,000 $1,554,219 Microchip Technology*............ 56,700 1,484,831 MMC Networks*.................... 9,300 296,147 PMC-Sierra* (Canada)............. 3,800 177,888 SIPEX*........................... 7,800 167,456 Xilinx*.......................... 19,400 660,206 ----------- 7,784,373 ----------- TELECOMMUNICATIONS -- 7.0% AirTouch Communications*......... 11,700 683,719 Ascend Communications*........... 23,300 1,154,078 Cincinnati Bell.................. 9,700 277,663 General Communications*.......... 34,900 209,400 Level One Communications*........ 32,500 764,766 MCI Communications............... 29,100 1,690,528 Nextel Communications (Class A)*.................... 19,100 474,516 Qwest Communications International*................ 2,800 97,563 Tekelec*......................... 5,700 255,788 Tele-Communications (Series A) TCI Group* ........ 19,300 741,241 SHARES OR PRINCIPAL AMOUNT VALUE --------- ------------- TELECOMMUNICATIONS (continued) Tele-Communications (Series A) TCI Ventures Group*.................... 50,800 shs. $ 1,017,588 ------------ 7,366,850 ------------ TOTAL COMMON STOCKS (Cost $97,352,275)........ 99,964,629 ------------ SUBORDINATED CONVERTIBLE BONDS -- 0.2% (Cost $190,000) COMPUTER SOFTWARE -- 0.2% Activision 6-3/4%, 1/1/2005.... $190,000 164,350 ------------ SHORT-TERM HOLDINGS -- 3.3% (Cost $3,500,000)......... 3,500,000 ------------ TOTAL INVESTMENTS -- 99.2% (Cost $101,042,275)....... 103,628,979 OTHER ASSETS LESS LIABILITIES-- 0.8%........ 792,337 ------------ NET ASSETS-- 100.0%.......... $104,421,316 ------------ ------------ - ------------------------------------------------------------------------------ SELIGMAN FRONTIER PORTFOLIO SHARES VALUE -------- --------- COMMON STOCKS -- 96.1% CAPITAL GOODS -- 11.9% Allied Waste Industries*......... 30,500 $ 731,047 American Disposal Services *..... 7,600 356,487 Cognex*.......................... 28,860 538,419 Corporate Express*............... 56,800 718,875 Flanders*........................ 16,000 76,000 Fusion Systems (Rights)*......... 3,745 234 Innovative Valve Technologies*... 9,100 66,259 Integrated Electrical Services*.. 10,800 217,350 Kemet*........................... 40,600 534,144 Lamalie Associates*.............. 9,900 185,006 Metamor Worldwide*............... 10,000 352,187 Oak Industries*.................. 22,630 800,536 UCAR International*.............. 28,400 828,925 Waste Connections*............... 10,000 199,375 Waterlink*....................... 12,700 107,950 ----------- 5,712,794 ----------- COMMUNICATION SERVICES -- 0.0% Arch Communications Group*....... 3,965 15,488 ----------- SHARES VALUE -------- --------- CONSUMER CYCLICALS -- 18.9% AccuStaff*....................... 38,600 $ 1,206,250 American Homestar*............... 32,737 784,665 Analysts International........... 7,500 213,281 Barnes & Noble*.................. 15,400 576,537 Borders Group*................... 7,600 281,200 Career Education*................ 10,000 247,500 CMP Media (Class A)*............. 3,100 53,669 Copart*.......................... 14,400 331,650 Duane Reade*..................... 13,600 408,000 HA-LO Industries*................ 12,700 395,287 Journal Register*................ 28,100 470,675 Market Facts*.................... 9,700 207,337 Personnel Group of America*...... 42,400 848,000 Petersen Companies (Class A)*.................... 16,700 427,937 Pittston Brink's Group........... 11,900 438,812 PMT Services*.................... 33,400 849,612 Polymer Group*................... 18,700 217,388 Pre-Paid Legal Services*......... 7,100 224,094 Primark*......................... 7,100 222,319 - ------------ * Non-income producing security. See Notes to Financial Statements. P-15 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN FRONTIER PORTFOLIO (continued) SHARES VALUE -------- --------- CONSUMER CYCLICALS (continued) RDO Equipment (Class A)*......... 8,300 $ 139,025 Vlasic Foods International*...... 21,100 243,513 Ziff-Davis*...................... 8,400 116,550 Zindart (ADRs)* (Hong Kong)...... 9,100 124,272 ----------- 9,027,573 ----------- CONSUMER STAPLES -- 13.1% Aurora Foods*.................... 12,200 257,725 Carriage Services (Class A)*..... 19,100 479,887 Coinmach Laundry*................ 42,300 1,001,981 Educational Medical*............. 30,600 276,356 EduTrek International (Class A)*.................... 23,700 579,169 Equity Corporation*.............. 17,100 410,400 Hearst-Argyle Television (Class A)*.................... 18,381 737,538 Jacor Communications*............ 13,350 788,484 Premier Parks*................... 4,000 266,500 Provant*......................... 16,700 307,906 Sinclair Broadcast Group (Class A)*.................... 12,600 361,462 U.S. Foodservice*................ 18,300 641,644 Youth Services International*.... 20,800 153,400 ----------- 6,262,452 ----------- ENERGY -- 4.3% Cabot Oil & Gas.................. 11,400 228,000 Calpine*......................... 31,800 641,962 Eagle Geophysical*............... 10,800 114,075 McDermott International.......... 11,600 399,475 Pogo Producing................... 11,410 286,676 Pride International*............. 6,200 105,012 Santa Fe Energy Resources*....... 25,300 271,975 ----------- 2,047,175 ----------- FINANCIAL SERVICES -- 9.3% American Capital Strategies*..... 13,900 317,094 Crusader Holding*................ 3,300 54,037 DST System*...................... 9,100 509,600 ESG Re........................... 12,700 280,194 First Commonwealth Financial..... 71,700 1,071,019 First Investors Financial Services Group*............... 2,000 12,750 First Sierra Financial*.......... 7,100 216,106 FirstService*.................... 16,000 204,000 Freedom Securities*.............. 1,500 27,187 Imperial Credit Industries*...... 21,100 490,575 Insignia Financial Group*........ 23,500 575,750 SHARES VALUE -------- --------- FINANCIAL SERVICES (continued) Ocwen Financial*................. 9,600 $ 258,000 Stirling Cooke Brown Holdings...................... 1,900 53,200 T&W Financial*................... 15,000 383,437 ----------- 4,452,949 ----------- HEALTH CARE -- 15.4% American Dental Partners......... 10,000 140,625 American HomePatient*............ 21,200 404,125 AMSurg (Class A)*................ 10,000 76,250 Castle Dental Centers*........... 55,000 537,969 Collaborative Clinical Research*..................... 20,000 82,500 CompDent*........................ 21,300 333,478 Dentsply International........... 13,270 330,091 Hanger Orthopedic Group*......... 20,800 423,800 HealthCor Holdings*.............. 13,700 17,981 IMNET Systems*................... 11,800 158,194 NCS Healthcare (Class A)*........ 5,400 154,237 Omnicare......................... 5,400 205,875 Orthalliance (Class A)*.......... 15,000 214,219 PMR*............................. 11,400 114,712 Professional Detailing*.......... 5,500 134,406 Province Healthcare*............. 24,300 661,416 PSS World Medical*............... 33,000 482,625 Quorum Health Group*............. 9,100 240,866 Renex*........................... 50,000 290,625 Schein Pharmaceutical*........... 7,100 189,038 Somnus Medical Technologies*................. 20,000 161,250 Total Renal Care Holdings*....... 22,500 776,250 Triangle Pharmaceuticals*........ 12,200 179,188 Universal Health Services (Class B)*.................... 10,000 583,750 Watson Pharmaceuticals*.......... 10,500 490,219 ----------- 7,383,689 ----------- TECHNOLOGY -- 19.8% Aavid Thermal Technologies*...... 3,000 87,188 ADE*............................. 5,700 83,719 Affiliated Computer Services (Class A)*.................... 11,400 438,900 American Management Systems*...................... 6,000 179,625 Amkor Technology*................ 6,100 56,997 ANTEC*........................... 22,200 516,844 Avant!*.......................... 30,000 741,563 AVX.............................. 12,700 203,994 - -------------- * Non-income producing security. See Notes to Financial Statements. P-16 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN FRONTIER PORTFOLIO (continued) SHARES VALUE -------- --------- TECHNOLOGY (continued) BISYS Group*..................... 12,800 $ 525,200 Black Box*....................... 10,800 358,763 Burr-Brown*...................... 31,350 663,248 Ceridian*........................ 19,900 1,169,125 CIDCO*........................... 1,600 7,450 Credence Systems*................ 28,400 540,488 General Semiconductors*.......... 33,100 326,863 Glenayre Technologies*........... 32,200 348,163 Global-Tech Appliances*.......... 2,900 41,688 HMT Technology*.................. 14,000 116,813 Indus International*............. 9,200 109,825 Inso*............................ 10,800 148,500 Integrated Device Technology*................... 18,100 129,245 Lattice Semiconductor*........... 4,570 129,817 Microchip Technology*............ 18,800 492,325 Micrografx*...................... 3,000 42,938 National Instruments*............ 5,000 178,906 Omnipoint*....................... 18,000 413,438 PMC-Sierra* (Canada)............. 12,700 594,519 PSW Technologies*................ 23,700 134,053 Thermoquest*..................... 12,700 189,706 Unigraphics Solutions*........... 6,700 93,800 Waters*.......................... 7,300 430,244 ----------- 9,493,947 ----------- SHARES OR PRINCIPAL AMOUNT VALUE -------- --------- TRANSPORTATION -- 1.6% Marine Transport*............ 2,610 shs. $ 10,685 OMI*......................... 26,100 208,800 US Xpress Enterprises (Class A)*................ 11,800 196,175 Wisconsin Central Transport*.. 15,300 335,166 ----------- 750,826 ----------- UTILITIES -- 1.8% CalEnergy*................... 28,660 861,591 ----------- TOTAL COMMON STOCKS (Cost $42,738,012)........ 46,008,484 REPURCHASE AGREEMENTS -- 15.1% (Cost $7,200,000) HSBC Securities, Inc., 5%, dated 6/30/1998, maturing 7/1/1998 collateralized by: $5,806,000 US Treasury Notes 9-3/8%, 2/15/2006, with a fair market value of $7,364,328 $7,200,000 7,200,000 ----------- TOTAL INVESTMENTS -- 111.2% (Cost $49,938,012)....... 53,208,484 OTHER ASSETS LESS LIABILITIES-- (11.2)%... (5,357,344) ----------- NET ASSETS-- 100.0%.......... $47,851,140 ----------- ----------- - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO SHARES VALUE -------- --------- COMMON STOCKS -- 90.5% AUSTRALIA -- 0.2% Pacifica Group (Automotive and Related)...... 5,200 $ 11,910 Telstra* (Telecommunications).... 2,500 6,407 ---------- 18,317 ---------- BRAZIL -- 1.6% Companhia Energetica de Minas Gerais "CEMIG" (ADRs) (Electric and Gas Utilities)................ 465 14,008 Companhia Paranaense de Energia "Copel" (ADRs) (Electric and Gas Utilities).. 1,800 16,650 SHARES VALUE -------- --------- BRAZIL (continued) Petroleo Brasileiro "Petrobras" (ADRs) (Resources)............ 2,480 $ 46,100 Telecomunicacoes Brasileiras "Telebras" (ADRs) (Telecommunications).......... 510 55,686 ---------- 132,444 ---------- CHINA -- 0.2% Huaneng Power International (ADRs)* (Electric and Gas Utilities).................... 1,400 18,812 ---------- - --------------- * Non-income producing security. See Notes to Financial Statements. P-17 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued) SHARES VALUE -------- --------- FINLAND -- 3.5% Nokia (Series A) (Telecommunications).......... 2,900 $ 212,894 Raision Tehtaat (Consumer Goods and Services)........... 4,000 72,047 ---------- 284,941 ---------- FRANCE -- 8.5% Accor (Entertainment and Leisure).................. 540 150,750 Cap Gemini (Computer and Technology Related)........... 1,111 174,141 ECIA (Automotive and Related).................. 251 69,574 Genset (ADRs)* (Drugs and Health Care).................. 2,500 73,516 Hachette Filipacchi Medias (Publishing).................. 400 115,494 Valeo (Automotive and Related).................. 1,030 105,024 ---------- 688,499 ---------- GERMANY -- 4.9% Adidas-Salomon (Consumer Goods and Services)........... 910 157,035 Lufthansa (Transportation)....... 5,300 132,793 Metro (Retailing)................ 1,740 105,382 Metro (Rights)* (Retailing)...... 1,740 67 ---------- 395,277 ---------- GREECE -- 1.6% Hellenic Telecommunication Organization (Telecommunications).......... 4,166 106,652 National Bank of Greece (Financial Services).......... 800 20,560 ---------- 127,212 ---------- HUNGARY -- 1.3% Magyar Tavkozlesi "Matav" (ADRs)* (Telecommunications).......... 2,070 60,936 MOL Magyar Olaj-es Gazipari (GDRs)*+ (Resources).......... 1,740 46,893 ---------- 107,829 ---------- INDIA -- 0.3% Videsh Sanchar Nigam (GDRs)+..... (Telecommunications).......... 1,950 20,329 ---------- SHARES VALUE -------- --------- IRELAND -- 1.8% Elan (ADRs)* (Drugs and Health Care).................. 2,250 $ 144,703 ---------- ITALY -- 2.1% Aeroporti di Roma (Transportation) 8,250 51,842 Mediolanum*. (Financial Services) 3,600 114,019 ---------- 165,861 ---------- JAPAN -- 5.9% Bellsystem 24 (Business Goods and Services)................. 300 44,842 Daitec (Business Goods and Services)................. 800 12,648 Diamond Computer Service (Computer and Technology Related)...................... 3,000 41,824 H.I.S. (Entertainment and Leisure)...................... 2,000 28,314 Hogy Medical (Drugs and Health Care).................. 900 27,552 Keyence (Electronics)............ 400 43,405 Kyocera (Electronics)............ 1,100 53,595 Meitec (Computer and Technology Related)........... 2,000 68,988 Nomura Securities (Financial Services)..................... 4,000 46,423 Sanyo Shinpan Finance............ (Financial Services).......... 1,000 35,213 Secom (Support Services)......... 1,000 57,562 Softbank (Computer and Technology Related)........... 500 19,403 ---------- 479,769 ---------- MEXICO -- 0.9% Grupo Iusacell (ADRs)* (Telecommunications).......... 1,200 16,500 Panamerican Beverages (Class A) (Consumer Goods and Services)................. 1,700 53,444 ---------- 69,944 ---------- NETHERLANDS -- 4.1% Gucci Group (Consumer Goods and Services)................. 1,300 68,900 Koninklijke KNP BT (Business Goods and Services)........... 2,615 67,356 - --------------- * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. P-18 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued) SHARES VALUE -------- --------- NETHERLANDS (continued) Philips Electronics (Electronics)................. 1,500 $ 125,843 PolyGram (Entertainment and Leisure).................. 1,390 70,787 ---------- 332,886 ---------- NORWAY -- 1.7% Tomra Systems (Business Goods and Services)........... 4,700 141,012 ---------- RUSSIA -- 0.1% Tatneft (ADRs)* (Resources)...... 1,400 10,850 ---------- SINGAPORE -- 0.1% Advanced Systems Automation (Manufacturing and Industrial Equipment).................... 16,000 6,356 ---------- SOUTH KOREA -- 0.1% Samsung Electronics (GDRs)* (Electronics)................. 660 9,230 ---------- SPAIN -- 5.8% Actividades de Construccion y Servicios (Construction and Property)................. 2,500 75,010 Aguas de Barcelona (Consumer Goods and Services)........... 2,000 111,415 Aguas de Barcelona (Rights)*..... (Consumer Goods and Services)................. 10 545 Centros Comerciales Continente (Retailing)................... 4,000 91,217 Superdiplo* (Retailing).......... 3,600 77,873 Tabacalera (Class A) (Tobacco)... 5,500 112,523 ---------- 468,583 ---------- SWEDEN -- 4.1% Astra (Class A) (Drugs and Health Care).................. 4,735 96,512 Autoliv (SDRs) (Automotive and Related).................. 1,100 35,076 L.M. Ericsson Telefon (Series B). (Telecommunications).......... 5,400 157,334 SHARES VALUE -------- --------- SWEDEN (continued) Skandia Forsakrings (Financial Services).......... 3,100 $ 44,192 ---------- 333,114 ---------- SWITZERLAND -- 2.7% Helvetia Patria Holding (Financial Services).......... 75 88,598 Sairgroup (Transportation)....... 400 131,359 ---------- 219,957 ---------- TAIWAN -- 0.1% Siliconeware Precision Industries (GDRs)* (Electronics)......... 1,020 8,160 ---------- UNITED KINGDOM -- 12.0% Airtours (Entertainment and Leisure).................. 8,500 63,920 Ashtead Group (Construction and Property)................. 14,000 55,091 Bodycote International (Industrial Goods and Services)........... 6,000 105,546 British Biotech (Drugs and Health Care).................. 14,000 8,579 CMG* (Computer and Technology Related)........... 2,200 69,055 CRT Group (Support Services)..... 6,500 45,141 Games Workshop Group (Entertainment and Leisure)... 4,500 43,519 Granada Group (Entertainment and Leisure)... 4,500 82,836 Halma (Industrial Goods and Services)................. 30,000 62,277 Ladbroke Group (Entertainment and Leisure)... 13,000 71,694 Parity (Computer and Technology Related)........... 5,625 73,673 Pizza Express (Restaurants)...... 8,000 114,317 Rolls Royce (Aerospace).......... 12,600 52,050 WPP Group (Business Goods and Services)................. 19,000 124,980 ---------- 972,678 ---------- UNITED STATES -- 26.9% American International Group (Financial Services).......... 650 94,900 American Telephone & Telegraph... (Telecommunications).......... 1,500 85,687 - -------------- * Non-income producing security. See Notes to Financial Statements. P-19 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO (continued) SHARES VALUE -------- --------- UNITED STATES (continued) Bristol-Myers Squibb (Drugs and Health Care).............. 1,100 $ 126,431 Cardinal Health (Drugs and Health Care).............. 1,200 112,500 Coca-Cola Enterprises (Consumer Goods and Services)........... 1,700 66,725 ConAgra (Consumer Goods and Services)................. 3,600 114,075 Dayton Hudson (Retailing)........ 2,600 126,100 Disney, Walt (Entertainment and Leisure).................. 1,000 105,063 General Electric (Diversified)... 1,300 118,300 Hewlett-Packard (Computer and Technology Related)....... 1,200 71,850 Interpublic Group of Companies (Business Goods and Services)..................... 1,750 106,203 Kroger* (Consumer Goods and Services)................. 1,500 64,312 Lilly (Eli) (Drugs and Health Care).................. 1,300 85,881 MBNA (Financial Services)........ 2,275 75,075 Merck (Drugs and Health Care).................. 900 120,375 Microsoft* (Computer and Technology Related)........... 1,000 108,406 PepsiCo (Consumer Goods and Services)................. 1,100 45,306 Pfizer(Drugs and Health Care) 1,300 141,294 Philip Morris (Tobacco).......... 2,300 90,563 Procter & Gamble (Consumer Goods and Services)........... 1,100 100,169 Travelers (Financial Services)... 1,950 118,219 SHARES OR PRINCIPAL AMOUNT VALUE -------- --------- UNITED STATES (continued) Xerox (Business Goods and Services).................. 1,000 shs. $ 101,625 ---------- 2,179,059 ---------- TOTAL COMMON STOCKS (Cost $6,038,874)......... 7,335,822 ---------- PREFERRED STOCKS -- 2.6% (Cost $103,690) GERMANY Porsche (Non-Voting)* (Automotive and Related)................... 72 208,274 ---------- FIXED TIME DEPOSITS -- 6.2% Canadian Imperial Bank of Commerce, Grand Cayman 5-3/4%, dated 6/30/1998, maturing 7/2/1998.......... $250,000 250,000 First National Bank of Chicago, Grand Cayman 5.40%, dated 6/30/1998, maturing 7/2/1998......... 250,000 250,000 ---------- TOTAL FIXED TIME DEPOSITS (Cost $500,000)............ 500,000 ---------- TOTAL INVESTMENTS -- 99.3% (Cost $6,642,564)......... 8,044,096 OTHER ASSETS LESS LIABILITIES-- 0.7%........ 59,953 ---------- NET ASSETS-- 100.0%.......... $8,104,049 ---------- ---------- - ---------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO SHARES VALUE -------- --------- COMMON STOCKS -- 92.3% AUSTRALIA -- 0.6% BRL Hardy (Consumer Goods and Services)..................... 7,000 $ 22,532 CSL (Medical Products and Technology)................... 3,200 20,699 Futuris (Automotive Parts Manufacturing)................ 16,273 14,304 SHARES VALUE -------- --------- AUSTRALIA (continued) HIH Winterthur International Holdings (Financial Services).......... 11,300 $ 19,935 Hoyts Cinemas Group (Leisure and Hotels)................... 13,000 16,899 National Foods (Consumer Goods and Services)........... 12,500 21,356 Pasminco (Metals)................ 18,000 13,705 - ------------- * Non-income producing security. See Notes to Financial Statements. P-20 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- AUSTRALIA (continued) Henry Walker Group (Support Services)............ 14,000 $ 14,906 ---------- 144,336 ---------- AUSTRIA -- 0.9% Bau Holdings (Construction and Property)................. 2,600 147,187 Bau Holdings (Voting Preference Shares) (Construction and Property)................. 1,380 65,645 ---------- 212,832 ---------- BELGIUM -- 1.1% Telinfo (Telecommunications)..... 2,350 260,915 ---------- BERMUDA -- 0.1% Dairy Farm International Holdings (Retailing).......... 12,500 13,375 ---------- CANADA -- 0.8% PMC-Sierra* (Technology)......... 2,600 121,713 Teleglobe (Telecommunications)... 2,600 69,411 ---------- 191,124 ---------- DENMARK -- 2.2% Danske Traelastkompagni (Construction and Property)... 2,043 194,020 Sydbank (Financial Services)..... 2,300 127,917 Thorkild Kristensen(.Construction and Property)................. 2,065 191,912 ---------- 513,849 ---------- FINLAND -- 1.3% Tamro (Series A) (Drugs and Health Care).................. 30,000 193,763 Valmet (Capital Goods)........... 6,715 115,574 ---------- 309,337 ---------- FRANCE -- 5.3% ECIA (Automotive Parts Manufacturing)................ 910 252,240 Etam Developpement* (Retailing)................... 1,659 128,649 Genset (ADRs)* (Drugs and Health Care).................. 2,840 83,514 IMS International Metal Service (Metals).............. 8,100 112,261 SHARES VALUE -------- --------- FRANCE (continued) L'Europeenne d'Extincteurs (Manufacturing)............... 1,610 $ 129,897 L'Europeenne d'Extincteurs (Warrants)* (Manufacturing)............... 246 2,801 Montupet (Automotive Parts Manufacturing)................ 6,440 255,012 Sylea (Automotive Parts Manufacturing)................ 1,807 166,661 Virbac (Veterinary Products)..... 1,360 108,156 ---------- 1,239,191 ---------- GERMANY -- 1.5% Moebel Walther (Retailing)....... 3,400 159,845 Tarkett (Consumer Goods and Services)................. 5,484 181,991 ---------- 341,836 ---------- HONG KONG -- 0.4% Esprit Holdings (Retailing)...... 32,000 9,707 Johnson Electric Holdings (Electronics)................. 5,500 20,376 Li & Fung (Consumer Goods and Services)................. 14,000 22,589 Shenzhen Expressway (Series H)... (Transportation).............. 90,000 16,613 Yanzhou Coal Mining (Series H)* (Resources)................... 30,000 5,731 Zindart (ADRs)*...(Consumer Goods and Services)................. 2,100 28,678 ---------- 103,694 ---------- INDIA -- 0.2% Gujurat Ambuja Cement (GDRs)..... (Building Materials).......... 10,839 51,214 ---------- IRELAND -- 0.3% Esat Telecom Group (ADRs)* (Telecommunications).......... 1,600 60,600 ---------- ITALY -- 0.5% La Doria (Consumer Goods and Services)................. 41,700 125,281 ---------- JAPAN -- 4.6% Aiya (Restaurants)............... 2,000 15,379 Asahi Diamond Industries (Manufacturing)............... 3,000 13,474 - ------------- * Non-income producing security. See Notes to Financial Statements. P-21 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- JAPAN (continued) Asatsu (Advertising)............. 1,900 $ 38,572 Benesse (Business Services)...... 1,000 34,853 Enplas (Electronics)............. 1,000 17,534 Forval (Telecommunications)...... 1,000 8,623 Fujicco (Consumer Goods and Services)................. 2,000 21,990 Fujitsu Business Systems (Business Services)........... 2,000 27,308 Glory Kogyo (Manufacturing)...... 2,000 30,326 Higashi Nihon House (Construction and Property)..................... 3,000 11,448 H.I.S. (Leisure and Hotels)...... 1,000 14,157 Hitachi Information Systems (Computer Software)........... 2,000 19,259 Hitachi Medical (Medical Products and Technology)...... 2,000 21,559 Hogy Medical (Medical Products and Technology)............... 700 21,429 Hokkai Can (Manufacturing)....... 7,000 16,600 Horiba Instruments (Electronics)................. 4,000 41,680 Iino Kaiun* (Transportation)..... 15,000 28,457 Japan Information Processing Service (Computer Software)..................... 2,200 18,972 Kentucky Fried Chicken (Restaurants)................. 2,000 19,978 Kissei Pharmaceutical (Drugs and Health Care).............. 1,000 14,732 Komatsu Seiren (Manufacturing)... 4,000 19,547 Maspro Denkoh (Telecommunications).......... 2,000 17,118 Mitsubishi Cable Industries (Manufacturing)............... 7,000 13,330 Mitsubishi Gas Chemical (Chemicals)................... 3,000 9,033 Mitsui Home (Construction and Property)..................... 5,000 22,313 Namura Shipbuilding (Capital Goods)............... 4,000 9,371 Nichicon (Manufacturing)......... 2,000 22,277 Nippon Broadcasting System (Media)....................... 1,000 42,039 SHARES VALUE -------- --------- JAPAN (continued) Nippon Seiki (Automotive Parts Manufacturing)................ 2,000 $ 12,217 Nishio Rent All (Construction and Property)..................... 2,000 16,097 Nissha Printing (Paper and Printing)..................... 3,000 18,325 Nisshin Fire & Marine Insurance (Financial Services).......... 8,000 20,121 Nittetsu Mining (Resources)...... 4,000 14,372 Nova (Consumer Goods and Services)..................... 3,000 8,580 Okinawa Electric Power (Electric Utilities).......... 1,200 18,540 Olympus Optical (Electronics).... 2,000 17,333 Otsuka Kagu (Retailing).......... 500 22,996 Ryoyo Electro (Electronics)...... 3,000 35,184 Sagami Chain (Restaurants)....... 2,000 17,649 Sanyo Special Steel (Metals)..... 12,000 13,366 Sodick (Manufacturing)........... 5,000 14,372 Sundrug (Retailing).............. 1,800 19,015 Takasago (Chemicals)............. 4,000 18,109 TOEI (Media)..................... 4,000 12,562 Tokyo Style (Manufacturing)...... 2,000 19,547 Towa Pharmaceutical (Drugs and Health Care).................. 2,000 13,510 Toyo Ink Manufacturing (Chemicals)................... 7,000 15,594 Tsubaki Nakashima (Manufacturing)............... 9,000 48,960 Tsudakoma (Manufacturing)........ 11,000 20,395 Tsutsumi Jewelry (Retailing)..... 3,000 39,452 Xebio (Retailing)................ 2,600 38,770 Yokohama Reito (Distributors).... 1,000 6,992 ---------- 1,073,416 ---------- NETHERLANDS -- 4.0% Benckiser (Series B)* (Consumer Goods and Services)........... 2,700 165,716 CMG* (Computer Software)......... 18,000 564,998 Samas Groep (Manufacturing)...... 3,036 213,000 ---------- 943,714 ---------- NEW ZEALAND -- 0.0% Sky Network Television* (Media)....................... 8,000 9,939 ---------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-22 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- NORWAY -- 0.8% Ekornes (Manufacturing).......... 13,800 $ 169,215 Tandberg Television* (Media)..... 2,600 21,919 ---------- 191,134 ---------- PHILIPPINES -- 0.1% Philippine Long Distance Telephone (Telecommunications).......... 1,000 22,782 ---------- SINGAPORE -- 0.2% Excel Machine Tools* (Manufacturing)............... 40,000 5,692 Keppel FELS (Industrial Goods and Services)........... 5,000 14,971 Venture Manufacturing (Electronics)................. 4,500 8,538 Want Want Holdings* (Consumer Goods and Services)................. 13,920 10,301 ---------- 39,502 ---------- SOUTH KOREA -- 0.1% L.G. Chemical* (Chemicals)....... 1,000 5,535 Samsung Display Devices (Electronics)................. 228 6,227 ---------- 11,762 ---------- SWEDEN -- 2.1% Angpanneforeningen (Series B) (Business Services)........... 4,375 76,591 BT Industries (Capital Goods).... 770 15,502 Bure Investment Aktiebolaget (Financial Services).......... 4,700 74,640 Finnveden (Series B) (Manufacturing)............... 3,600 82,381 Munksjo (Paper and Printing)..... 8,400 81,931 PLM (Manufacturing).............. 9,500 149,681 ---------- 480,726 ---------- SWITZERLAND -- 2.5% Bon Appetit Holding (Retailing)................... 197 130,944 Bon Appetit Holding (Warrants)* (Retailing)................... 197 4,019 Hero (Consumer Goods and Services)................. 150 101,678 Kardex (Industrial Goods and Services)................. 484 149,707 SHARES VALUE -------- --------- SWITZERLAND (continued) Selecta Group* (Consumer Goods and Services)........... 850 $ 181,244 SIG Schweizerische Industrie-Gesellschaft Holding (Manufacturing)....... 36 29,260 ---------- 596,852 ---------- TAIWAN -- 0.1% Taiwan American Fund* (Miscellaneous)............... 2,000 31,820 ---------- THAILAND -- 0.1% Hana Microelectronics (Electronics)................. 5,000 12,827 ---------- UNITED KINGDOM -- 19.8% AEA Technology (Industrial Goods and Services)........... 6,500 98,356 Allied Leisure (Leisure and Hotels)................... 97,500 40,643 Ashtead Group (Construction and Property)................. 106,600 419,478 BTG (Technology)................. 7,000 97,460 Capital Radio (Media)............ 20,500 242,177 Chiroscience Group (Drugs and Health Care).............. 4,250 19,665 Clinton Cards (Retailing)........ 40,000 92,707 Cobham (Manufacturing)........... 8,950 156,694 CRT Group (Support Services)............ 30,000 208,342 David Brown Group (Manufacturing)............... 40,657 140,667 Dawson Group (Transportation).... 26,600 110,882 Domnick Hunter Group (Manufacturing)............... 20,000 124,221 Druck Holdings (Industrial Goods and Services)........... 11,500 54,649 Electronics Boutique* (Retailing)................... 129,800 191,539 F.I. Group (Computer Software)..................... 14,196 362,749 Fairey Group (Electronics)....... 15,200 83,003 Games Workshop Group (Retailing)................... 9,400 90,907 GWR Group (Media)................ 24,000 89,639 IBC Group (Business Services)........... 27,800 232,232 - ------------- * Non-income producing security. See Notes to Financial Statements. P-23 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- UNITED KINGDOM (continued) ICON (ADRs)* (Consumer Goods and Services)........... 5,000 $ 126,563 National Express Group (Transportation).............. 14,000 226,083 Parity (Computer Software)....... 25,312 331,522 Peptide Therapeutics (Drugs and Health Care).................. 2,750 10,455 Pizza Express (Restaurants)...... 19,500 278,648 Polypipe (Building Materials).... 70,500 171,038 Save Group (Retailing)........... 8,600 18,068 Shire Pharmaceuticals* (Drugs and Health Care)....... 5,500 38,655 Tilbury Douglas (Construction and Property)................. 50,500 242,086 Trifast (Electrical Distribution) 8,000 80,035 Trinity (Media).................. 26,100 211,285 Vanguard Medica Group (Drugs and Health Care)....... 3,500 18,675 Vanguard Medica Group (Warrants)* (Drugs and Health Care)....... 500 392 Wellington Holdings (Manufacturing)............... 9,500 26,533 ---------- 4,636,048 ---------- UNITED STATES -- 42.7% Aavid Thermal Technologies* (Technology).................. 700 20,344 AccuStaff* (Business Services)........... 8,600 268,750 Acuson* (Medical Products and Technology)............... 3,000 54,563 Acxiom* (Computer Software)...... 4,300 107,634 ADE* (Technology)................ 1,600 23,500 Aerial Communications* (Communication Services)...... 6,400 39,600 Affiliated Computer Services (Class A)* (Business Services)..................... 1,900 73,150 Allied Waste Industries (Industrial Goods and Services)........... 5,900 141,416 American Capital Strategies* (Financial Services).......... 2,200 50,188 American Disposal Services* (Consumer Goods and Services)..................... 1,600 75,050 American HomePatient* (Drugs and Health Care).............. 2,800 53,375 SHARES VALUE -------- --------- UNITED STATES (continued) American Homestar* (Manufacturing)............... 7,200 $ 172,575 American Management Systems* (Business Services)........... 1,000 29,938 Amkor Technology* (Technology).................. 1,300 12,147 Analysts International (Business Services)........... 1,500 42,656 ANTEC* (Telecommunications).......... 3,900 90,797 Arch Communications Group* (Telecommunications).......... 3,900 15,234 Asyst Technologies* (Technology).................. 4,900 61,556 Aurora Foods* (Consumer Goods and Services)........... 2,400 50,700 Avant!* (Computer Software)...... 4,300 106,291 AVX (Electronics)................ 2,800 44,975 BA Merchant Services (Class A)* (Business Services)........... 4,900 98,919 Bacou USA* (Industrial Goods and Services)................. 3,100 65,003 Barnes & Noble* (Retailing)...... 3,200 119,800 BISYS Group* (Business Services)........... 2,900 118,991 Black Box* (Electrical Distribution)................. 2,300 76,403 Budget Group* (Consumer Goods and Services)........... 1,400 44,713 Burr-Brown* (Technology)......... 6,000 126,938 Cabot Industrial Trust* (Financial Services).......... 1,300 27,788 Cabot Oil & Gas (Technology)..... 2,400 48,000 CalEnergy* (Electric Utilities).. 5,900 177,369 Calpine* (Electric Utilities).... 9,700 195,819 Canandaigua Brands (Class A)* (Consumer Goods and Services)................. 2,615 128,625 Carriage Services* (Consumer Goods and Services)........... 3,500 87,938 Castle Dental Centers*(Drugs and Health Care).............. 6,000 58,688 CCA Prison Realty Trust (Constuction and Property).... 3,800 116,375 Celadon Group* (Transportation).............. 2,100 40,031 Ceridian* (Business Services).... 3,900 229,125 CMP Media (Class A)* (Media)..... 700 12,119 - -------------- * Non-income producing security. See Notes to Financial Statements. P-24 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- UNITED STATES (continued) Cognex* (Electronics)............ 5,400 $100,744 Coinmach Laundry* (Consumer Goods and Services)........... 4,500 106,594 Collaborative Clinical Research* (Drugs and Health Care)....... 2,900 11,963 Compdent* (Medical Products and Technology)............... 6,000 93,938 Copart* (Consumer Goods and Services)................. 2,800 64,488 Corporate Express* (Retailing)................... 10,500 132,891 Cox Radio (Class A)* (Media)....................... 4,000 173,000 Credence Systems* (Technology).................. 5,425 103,245 Crusader Holding* (Financial Services).......... 700 11,463 Duane Reade* (Retailing)......... 3,000 90,000 Eagle Geophysical* (Energy)...... 1,800 19,013 EduTrek International (Class A)* (Educational Services)........ 4,000 97,750 Equity International*(Consumer Goods and Services)........... 3,000 72,000 FactSet Research Systems* (Business Services)........... 1,200 39,000 FirstService* (Business Services)..................... 4,100 52,275 Flanders*(Consumer Goods and Services)................. 4,200 19,950 Freedom Securities* (Financial Services).......... 300 5,438 Fusion Systems (Rights)* (Capital Goods)............... 800 50 General Cable (Manufacturing)............... 1,500 43,313 General Semiconductor* (Technology).................. 6,200 61,225 Glenayre Technologies* (Telecommunications).......... 7,200 77,850 Global-Tech Appliances* (Computer Software)........... 600 8,625 HA-LO Industries* (Advertising)................. 2,300 71,588 HCC Insurance Holdings (Financial Services).......... 1,500 33,000 Hearst-Argyle Television (Class A)* (Media)....................... 3,500 140,438 SHARES VALUE -------- --------- UNITED STATES (continued) HMT Technology* (Technology).................. 3,100 $ 25,866 Horizon Medical Products* (Medical Products and Technology)...... 10,000 91,563 Imnet Systems* (Computer Software)........... 2,200 29,494 Imperial Credit Commercial Mortgage Investment (Financial Services).......... 2,400 31,275 Imperial Credit Industries* (Financial Services).......... 4,700 109,275 Indus International* (Technology).................. 2,000 23,875 Innovative Valve Technologies* (Capital Goods)............... 2,200 16,019 Insignia Financial* (Financial Services).......... 4,400 107,800 Inso* (Computer Software)........ 2,200 30,250 Integrated Device Technology* (Technology).................. 2,900 20,708 Integrated Electrical Services* (Electronics)................. 2,400 48,300 Ivex Packaging* (Capital Goods)............... 3,300 76,725 Jacor Communications* (Media)....................... 2,900 171,281 Journal Register* (Media)........ 5,400 90,450 Kemet* (Technology).............. 7,800 102,619 Keystone Automotive Industries* (Distributors)................ 600 13,838 LandCARE USA* (Consumer Goods and Services)........... 5,300 44,056 Lattice Semiconductor*........... (Technology).................. 1,000 28,406 MAPICS (Computer Software)....... 5,000 98,594 Marcam Solutions* (Computer Software)........... 2,500 44,688 Market Facts* (Business Services)........... 2,300 49,163 McDermott International (Industrial Goods and Services)........... 2,500 86,094 Medallion Financial (Financial Services).......... 3,400 92,863 Metamor Worldwide* (Business Services)........... 2,200 77,481 Microchip Technology* (Technology).................. 4,000 104,750 Micrografx* (Business Services).. 700 10,019 - -------------- * Non-income producing security. See Notes to Financial Statements. P-25 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES VALUE -------- --------- UNITED STATES (continued) MMI (Financial Services)......... 2,926 $ 67,664 Mutual Risk Management (Financial Services).......... 3,332 121,410 Nanogen* (Medical Products and Technology)............... 5,300 34,616 National Instruments* (Technology).................. 1,000 35,781 NCS HealthCare (Class A)* (Drugs and Health Care)....... 1,300 37,131 Oak Industries* (Capital Goods).............. 600 21,225 Ocwen Financial* (Financial Services).......... 2,300 61,813 OM Group (Chemicals)............. 3,000 123,750 Omnicare (Drugs and Health Care).................. 1,100 41,938 Personnel Group of America* (Business Services)........... 8,200 164,000 Petersen Companies (Class A)* (Media)....................... 3,000 76,875 Physicians' Specialty*(Drugs and Health Care).............. 10,000 86,250 PMT Services* (Business Services)........... 7,500 190,781 Polymer Group* (Manufacturing)............... 2,000 23,250 Premier Parks* (Leisure and Hotels)................... 800 53,300 Pre-Paid Legal Services* (Business Services)........... 3,200 101,000 Pride International* (Industrial Goods and Services)........... 1,400 23,713 Professional Detailing*(Drugs and Health Care).............. 5,000 122,188 Provant* (Business Services)..... 3,500 64,531 Province Healthcare*(Drugs and Health Care).............. 4,600 125,206 PSS World Medical* (Drugs and Health Care).............. 7,400 108,225 PSW Technologies* (Business Services)........... 4,300 24,322 Quorum Health Group* (Drugs and Health Care)....... 1,500 39,703 RDO Equipment (Class A)* (Retailing)................... 5,300 88,775 Renex* (Medical Products and Technology)............... 9,000 52,313 SHARES VALUE -------- --------- UNITED STATES (continued) Santa Fe Energy Resources* (Resources)................... 4,900 $ 52,675 Schein Pharmaceutical* (Drugs and Health Care).............. 1,700 45,263 Sinclair Broadcast Group (Class A)* (Media)............ 2,800 80,325 Somnus Medical Technologies* (Medical Products and Technology)................... 5,000 40,313 Stanford Telecommunications* (Technology).................. 900 13,416 Steinway Musical Instruments* (Consumer Goods and Services)..................... 2,900 93,525 Stirling Cooke Brown Holdings (Financial Services).......... 400 11,200 Total Renal Care Holdings* (Drugs and Health Care)....... 6,833 235,739 Triangle Pharmaceuticals*........ (Drugs and Health Care)....... 2,700 39,656 UCAR International* (Capital Goods)............... 5,800 169,288 Unigraphics Solutions* (Technology).................. 1,400 19,600 U.S. Foodservice* (Business Services)........... 5,500 192,844 Valley National Gases* (Chemicals)................... 6,100 68,625 Vlasic Foods International* (Consumer Goods and Services)..................... 2,800 56,350 Waterlink* (Capital Goods)....... 3,300 28,050 Waters* (Medical Products and Technology)............... 1,600 94,300 Watson Pharmaceuticals* (Medical Products and Technology)...... 1,900 88,706 Wilmar Industries* (Consumer Goods and Services)........... 1,900 48,450 Wisconsin Central Transportation* (Transportation).............. 3,600 78,863 Youth Services* (Support Services)............ 10,900 80,388 Ziff-Davis* (Publishing)......... 1,800 24,975 ---------- 10,014,687 ---------- TOTAL COMMON STOCKS (Cost $18,351,347)............ 21,632,793 ---------- - -------------- * Non-income producing security. See Notes to Financial Statements. P-26 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) SHARES OR PRINCIPAL AMOUNT VALUE -------- --------- PREFERRED STOCKS -- 0.5% (Cost $148,363) GERMANY -- 0.5% Gerry Weber International* (Manufacturing)............ 4,993 shs. $ 109,636 ---------- SUBORDINATED CONVERTIBLE BONDS -- 0.2% FRANCE -- 0.1% L'Europeenne d'Extincteurs 4-1/4%, 1/1/2005 (Manufacturing)... $24,600 21,836 JAPAN -- 0.1% Gunma Bank 0.45%, 9/28/2001 (Financial Services)....... 4,000,000** 30,038 ---------- TOTAL SUBORDINATED CONVERTIBLE BONDS (Cost $51,054)....... 51,874 ---------- PRINCIPAL AMOUNT VALUE -------- --------- FIXED TIME DEPOSITS -- 5.1% Canadian Imperial Bank of Commerce, Grand Cayman 5-3/4%, dated 6/30/1998, maturing 7/2/1998............. $900,000 $ 900,000 First National Bank of Chicago, Grand Cayman 5.40%, dated 6/30/1998, maturing 7/2/1998............. 300,000 300,000 ---------- TOTAL FIXED TIME DEPOSITS (Cost $1,200,000)............. 1,200,000 ---------- TOTAL INVESTMENTS -- 98.1% (Cost $19,750,764)............ 22,994,303 OTHER ASSETS LESS LIABILITIES-- 1.9%............ 447,354 ----------- NET ASSETS-- 100.0%.............. $23,441,657 ----------- ----------- - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO SHARES VALUE -------- --------- COMMON STOCKS -- 89.4% BRAZIL -- 1.0% Telecomunicacoes Brasileiras "Telebras" (ADRs) (Telecommunications).......... 500 $ 54,594 ---------- CANADA -- 0.4% PMC-Sierra* (Semiconductors).............. 500 23,406 ---------- DENMARK -- 0.8% NeuroSearch* (Miscellaneous)............... 580 44,807 ---------- FINLAND -- 1.9% Nokia (Series A) (Telecommunications).......... 1,400 102,776 ---------- FRANCE -- 4.3% Alcatel (Telecommunications)..... 300 60,932 Cap Gemini* (Computer Software)........... 377 59,092 Genset (ADRs)* (Medical Products and Technology)...... 1,500 44,109 Rhone Poulenc (Medical Products and Technology)...... 1,200 67,515 ---------- 231,648 ---------- SHARES VALUE -------- --------- GERMANY -- 1.7% Mannesmann (Electronics Capital Equipment)............ 900 $ 91,145 ---------- HONG KONG -- 0.5% Elec & Eltek International Holdings (Electronics)........ 150,000 28,656 ---------- HUNGARY -- 0.5% Richter Gedeon (GDRs) (Medical Products and Technology)...... 350 28,000 ---------- INDIA -- 0.2% Videsh Sanchar Nigam (GDRs)*+ (Telecommunications)......... 1,000 10,425 ---------- ISRAEL -- 4.4% Check Point Software Technologies* (Computer Software)........... 1,000 32,750 ECI Telecommunications (Networking/Communications Infrastructure)............... 3,000 113,625 Orbotech* (Electronics).......... 1,500 54,422 Tecnomatix Technologies* (Computer Software)........... 1,700 34,053 ---------- 234,850 ---------- - ------------- * Non-income producing security. ** Principal amount reported in Japanese yen. + Rule 144A security. See Notes to Financial Statements. P-27 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued) SHARES VALUE ----------- ----------- ITALY -- 1.3% Telecom Italia (Telecommunications).......... 9,500 $ 69,806 ----------- JAPAN -- 2.7% CSK (Computer and Business Services)............ 1,000 19,834 Hirose Electronics (Electronics)................. 400 19,460 NEC (Networking/Communications Infrastructure)............... 5,000 46,459 Secom (Computer and Business Services)............ 1,000 57,562 ----------- 143,315 ----------- LUXEMBOURG -- 0.7% Scandinavian Broadcasting System* (Media)....................... 1,200 36,113 ----------- NETHERLANDS -- 3.2% CMG* (Computer Software)......... 5,400 169,500 ----------- NORWAY -- 2.9% Merkantildata (Computer Software)........... 9,000 113,879 Provida* (Computer Software)..... 2,000 38,351 ----------- 152,230 ----------- SINGAPORE -- 3.1% Creative Technology* (Computer Hardware/Peripherals)......... 5,500 68,234 Flextronics International* (Electronics)................. 1,000 43,469 Informatics Holdings (Computer Software)........... 70,000 15,979 Venture Manufacturing (Electronics)................. 20,000 37,946 ----------- 165,628 ----------- SOUTH KOREA -- 0.1% SK Telecommunications Group (ADRs) (Telecommunications) 438 2,436 ----------- SWEDEN -- 3.2% L.M. Ericsson Telefon (Series B) (Networking/Communications Infrastructure)............... 2,900 84,494 Information Highway* (Computer and Business Services)........ 2,000 43,766 SHARES VALUE ----------- ----------- SWEDEN (continued) Pharmacia & Upjohn (Medical Products and Technology)...... 920 $ 42,221 ----------- 170,481 ----------- SWITZERLAND -- 1.6% Novartis (Medical Products and Technology)................... 50 83,054 ----------- TAIWAN -- 1.4% Siliconeware Precision Industries (GDRs)* (Electronics Capital Equipment).................... 5,024 40,192 Taiwan Semiconductor Manufacturing (ADRs)* (Semiconductors).............. 2,000 33,750 ----------- 73,942 ----------- UNITED KINGDOM -- 19.5% Abacus Polar (Distributors)...... 8,500 13,181 Admiral (Computer and Business Services)............ 5,320 113,765 Astec (Computer Hardware/ Peripherals).................. 12,600 17,123 BTG (Computer and Business Services)............ 3,600 50,122 Cable & Wireless (Telecommunications).......... 6,000 72,982 Celltech* (Medical Products and Technology)............... 9,400 48,980 COLT Telecom Group* (Telecommunications).......... 2,500 100,148 General Electric (Electronics)... 8,700 74,925 Isotron (Medical Products and Technology)............... 5,000 46,270 Logica (Computer and Business Services)............ 2,690 86,903 M.M.T. Computing (Computer and Business Services)........ 4,500 91,915 Misys (Computer Software)........ 1,100 62,526 Premier Farnell (Distributors)... 3,500 17,799 Psion (Computer Hardware/ Peripherals).................. 11,600 125,722 RM (Networking/Communication Infrastructure)............... 10,000 61,694 Spring Group (Computer and Business Services)........ 8,700 60,419 ----------- 1,044,474 ----------- - -------------- * Non-income producing security. See Notes to Financial Statements. P-28 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO (continued) SHARES VALUE ----------- ----------- UNITED STATES -- 34.0% 3DO* (Computer Software)......... 3,800 $ 12,172 Activision* (Computer Software)........... 1,000 10,344 American Power Conversion* (Computer Hardware/ Peripherals).................. 1,400 41,825 Aspect Telecommunications* (Networking/Communications Infrastructure)............... 1,000 27,438 Autodesk (Computer Software)..... 500 19,266 Cadence Design System* (Computer Software)........... 2,000 62,500 CMP Media (Class A)* (Media)..... 4,200 72,713 Cognex* (Electronics Capital Equipment)............ 2,000 37,312 Credence Systems* (Electronics Capital Equipment)............ 1,400 26,644 Electro Scientific Industries* (Electronics Capital Equipment).................... 1,200 37,988 Electronic Arts* (Computer Software)........... 1,800 97,312 Electronics for Imaging* (Electronics)................. 2,500 52,656 EMC* (Computer Hardware/ Peripherals).................. 3,300 147,881 Etec Systems* (Electronics Capital Equipment)............ 1,050 36,980 Gartner Group (Class A)* (Computer and Business Services)..................... 1,800 62,944 Genesys Telecommunications Laboratories* (Computer Software)........... 1,300 43,022 Hadco* (Electronics)............. 400 9,325 HNC Software* (Computer Software)........... 1,400 57,181 In Focus Systems* (Computer Hardware/Peripherals)......... 1,300 9,222 KLA-Tencor* (Electronics Capital Equipment)............ 1,300 36,034 Kulicke & Soffa Industries* (Electronics Capital Equipment).................... 2,500 42,344 Lattice Semiconductor* (Semiconductors).............. 1,000 28,406 Lexmark International Group (Class A)* (Computer Hardware/Peripherals)......... 1,400 85,400 SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- UNITED STATES (continued) Maxim Integrated Products* (Semiconductors)............. 2,400 shs. $ 76,125 Microchip Technology* (Semiconductors)............. 2,000 52,375 NeoMagic* (Computer Hardware/Peripherals)........ 1,500 23,203 Network Associates* (Computer Software).......... 1,849 88,463 Novellus Systems* (Electronics Capital Equipment)........... 2,300 82,153 Parametric Technology* (Computer Software).......... 1,700 46,059 REMEC* (Networking/ Communications Infrastructure).............. 900 10,378 Sawtek* (Electronics)........... 1,100 16,053 Storage Technology* (Computer Hardware/Peripherals)........ 1,400 60,725 Structural Dynamics Research* (Computer Software).......... 4,200 96,731 Synopsys* (Computer Software).................... 2,547 116,605 Teradyne* (Electronics Capital Equipment)................... 2,000 53,500 Veeco Instruments (Electronics Capital Equipment)........... 1,500 37,313 ----------- 1,816,592 ----------- TOTAL COMMON STOCKS (Cost $4,275,384)............ 4,777,878 ----------- FIXED TIME DEPOSITS -- 6.5%..... Canadian Imperial Bank of Commerce, Grand Cayman 5-3/4%, dated 6/30/1998, maturing 7/2/1998............ $150,000 150,000 First National Bank of Chicago, Grand Cayman 5.40%, dated 6/30/1998, maturing 7/2/1998............ 200,000 200,000 ----------- TOTAL FIXED TIME DEPOSITS (Cost $350,000).............. 350,000 ----------- TOTAL INVESTMENTS -- 95.9% (Cost $4,625,384)............ 5,127,878 OTHER ASSETS LESS LIABILITIES-- 4.1%........... 217,421 ----------- NET ASSETS-- 100.0%............. $ 5,345,299 ----------- ----------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-29 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 95.7% AUSTRALIA -- 0.9% Colonial (Financial Services).... 14,000 $ 42,290 Colonial (Rights)* (Financial Services).......... 2,800 646 Rio Tinto (Metals)............... 400 4,754 Telstra* (Telecommunications) 2,400 6,150 Westpac Banking (Banking)........ 7,000 42,680 ----------- 96,520 ----------- BRAZIL -- 2.0% Companhia Energetica de Minas Gerais "CEMIG" (ADRs) (Utilities)............ 1,347 40,578 Companhia Paranaense de Energia "Copel" (ADRs) (Utilities)................... 4,000 37,000 Petroleo Brasileiro "Petrobras" (ADRs) (Resources)............ 2,925 54,372 Telecomunicacoes Brasileiras "Telebras"(ADRs) (Telecommunications).......... 730 79,707 ----------- 211,657 ----------- DENMARK -- 0.9% Tele Danmark (Series B)* (Telecommunications).......... 1,009 96,702 ----------- FRANCE --14.1% Accor (Leisure and Hotels)....... 664 185,367 Alcatel (Telecommunications)..... 836 169,796 Alstom* (Manufacturing).......... 3,005 98,664 AXA-UAP (Insurance).............. 1,739 195,106 Carrefour Supermarche (Retailing)................... 204 128,743 ELF Aquitaine (Resources)........ 1,145 160,578 Etam Developpement* (Retailing)................... 945 73,281 Lafarge (Construction and Property)..................... 1,738 179,223 Rhodia* (Chemicals).............. 841 23,395 Schneider (Electronics).......... 1,408 111,996 Vivendi (Industrial Goods and Services)................. 905 192,769 ----------- 1,518,918 ----------- GERMANY -- 10.8% Adidas-Salomon (Retailing)....... 766 132,186 Bayer (Chemicals)................ 2,799 144,130 Bayerische Motoren Werke "BMW" (Manufacturing)......... 119 119,856 SHARES VALUE ----------- ----------- GERMANY (continued) Bayerische Motoren Werke "BMW"* (Manufacturing)........ 34 $ 33,755 Bayerische Vereinsbank (Banking)..................... 2,136 181,347 Deutsche Bank (Banking).......... 1,721 145,495 Lufthansa (Transportation)....... 6,388 160,053 Mannesmann (Industrial Goods and Services)................. 2,410 244,066 ----------- 1,160,888 ----------- GREECE -- 1.4% Hellenic Telecommunications Organization (Telecommunications).......... 4,111 105,244 National Bank of Greece (Banking)..................... 1,600 41,120 ----------- 146,364 ----------- HONG KONG -- 0.2% Citic Pacific (Miscellaneous).... 2,000 3,537 Hutchison Whampoa (Industrial Goods and Services)..................... 2,000 10,559 Television Broadcasts (Media)....................... 3,000 7,939 ----------- 22,035 ----------- HUNGARY -- 2.2% Magyar Tavkozlesi "Matav" (ADRs) (Telecommunications).......... 4,100 120,694 MOL Magyar Olaj-es Gazipari (GDRs)*+ (Resources).......... 4,400 118,580 ----------- 239,274 ----------- IRELAND -- 0.8% Bank of Ireland (Banking)........ 4,000 82,236 ----------- ITALY -- 5.3% Banca Popolare di Bresci (Banking)..................... 6,936 130,872 ENI (Resources).................. 20,858 136,457 Istituto Nazionale delle Assicurazioni (Insurance)..... 4,568 148,269 Telecom Italia (Telecommunications).......... 32,408 156,603 ----------- 572,201 ----------- - ---------------- * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. P-30 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued) SHARES VALUE ----------- ----------- JAPAN -- 9.6% Aoyama Trading (Retailing)....... 500 $ 12,288 Bank of Tokyo-Mitsubishi (Financial Services).......... 3,000 31,670 Banyu Pharmaceutical (Health and Household)........ 1,000 10,779 Benesse (Business Services)...... 500 17,427 Canon (Business Services)........ 1,000 22,637 CSK (Business Services).......... 1,000 19,834 Dai Nippon Printing (Industrial Goods and Services)........... 2,000 31,835 Daiwa Securities (Financial Services)..................... 9,000 38,612 Denny's (Restaurants)............ 1,000 24,793 East Japan Railway (Transportation).............. 6 28,113 Fujitsu Business Systems (Business Services)........... 600 8,192 Ishikawajima-Harima (Industrial Goods and Services)........... 16,000 29,090 Japan Airport Terminal (Transportation).............. 1,000 5,533 Japan Tobacco (Tobacco).......... 4 26,991 KAO (Consumer Products).......... 2,000 30,757 Kirin Brewery (Consumer Products)..................... 3,000 28,242 Mitsui* (Distributors)........... 50,000 269,484 Mitsui Chemicals (Chemicals)..... 13,000 36,808 Nippon Telegraph & Telephone (Telecommunications).......... 4 33,057 Nitto Denko (Industrial Goods and Services)................. 2,000 29,967 Pioneer Electronic (Electronics)................. 3,000 57,131 Shohkoh Fund (Financial Services)..................... 100 24,505 Sumitomo Bank (Banking).......... 3,000 29,104 Sumitomo Realty & Development (Construction and Property)... 7,000 30,786 Sumitomo Trust and Banking (Banking)..................... 4,000 17,822 Takefuji (Financial Services).... 600 27,595 Toho (Media)..................... 100 10,492 Toshiba (Electronics)............ 11,000 44,820 Tsubaki Nakashima (Manufacturing)............... 3,000 16,320 Yamaha (Manufacturing)........... 3,000 29,104 SHARES VALUE ----------- ----------- JAPAN (continued) York-Benimaru (Retailing)........ 700 $ 13,129 ----------- 1,036,917 ----------- MEXICO -- 0.9% Grupo Iusacell (ADRs)* (Telecommunications).......... 2,220 30,525 Panamerican Beverages (Class A) (Consumer Products)..................... 2,200 69,162 ----------- 99,687 ----------- NETHERLANDS -- 7.2% Akzo Nobel (Chemicals)........... 594 131,783 Benckiser (Series B)* (Consumer Products)........... 3,308 203,032 ING Groep (Insurance)............ 3,175 207,487 Philips Electronics (Electronics) 1,544 129,535 Vedior* (Miscellaneous).......... 1,541 43,472 Vendex International (Retailing).................. 1,562 59,928 ----------- 775,237 ----------- PHILIPPINES -- 0.1% Philippine Long Distance Telephone (Telecommunications).......... 200 4,556 ----------- PORTUGAL -- 1.1% Electricidade de Portugal (Utilities)................... 4,966 115,209 ----------- RUSSIA -- 0.6% Lukoil Holding (ADRs) (Resources)................... 760 25,407 Tatneft (ADRs) (Resources)....... 5,300 41,075 ----------- 66,482 ----------- SOUTH KOREA -- 0.6% Samsung Electronics (Electronics)................. 1,950 60,360 ----------- SPAIN -- 4.9% Actividades de Construccion y Servicios (Construction and Property)..................... 3,591 107,744 - -------------- * Non-income producing security. See Notes to Financial Statements. P-31 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO (continued) SHARES VALUE ----------- ----------- SPAIN (continued) Banco Bilbao Vizcaya (Banking)..................... 3,042 $ 155,985 Centros Comerciales Continente (Retailing)........ 3,803 86,725 Endesa (Utilities)............... 615 13,444 Telefonica de Espana (Telecommunications).......... 3,403 157,201 ----------- 521,099 ----------- SWEDEN -- 4.5% Astra (Class A) (Health and Household).................... 7,217 147,102 L.M. Ericsson Telefon (Series B) (Telecommunications).......... 6,201 180,672 Nordbanken Holding (Banking) 21,318 155,946 ----------- 483,720 ----------- SWITZERLAND -- 7.5% CS Holdings (Banking)............ 846 187,907 Nestle (Consumer Products)....... 69 147,400 Novartis (Health and Household).................... 84 139,530 UBS* (Banking)................... 398 147,728 Zurich Versicherung (Insurance).. 292 186,019 ----------- 808,584 ----------- TAIWAN -- 0.2% The ROC Taiwan Fund (Miscellaneous)............... 1,200 8,100 Taiwan Opportunities Fund* (Miscellaneous)............... 1,000 13,160 ----------- 21,260 ----------- UNITED KINGDOM -- 19.9% Associated British Ports Holdings (Transportation)..... 14,500 80,752 B.A.T. Industries (Tobacco)...... 17,000 169,650 SHARES VALUE ----------- ----------- UNITED KINGDOM (continued) British Biotech (Health and Household).................... 26,500 $ 16,238 British Petroleum (Resources).... 9,500 138,207 Bunzl (Manufacturing)............ 23,000 108,148 Caradon (Building Materials)..... 16,200 50,242 FKI Babcock (Industrial Goods and Services)................. 27,000 78,560 Granada Group (Leisure and Hotels)....................... 10,500 193,285 The Great Universal Stores (Retailing)................... 4,400 57,995 Kingfisher (Retailing)........... 4,500 72,857 Laporte (Chemicals).............. 7,000 83,745 Lloyd TSB (Banking).............. 7,500 104,671 National Power (Utilities)....... 13,500 126,956 Railtrack Group (Transportation). 7,699 189,094 Rolls Royce (Industrial Goods and Services)................. 17,600 72,705 Royal Bank of Scotland (Banking)..................... 8,500 147,256 Tesco (Retailing)................ 16,500 160,808 United Utilities (Utilities)..... 9,000 131,233 WPP Group (Media)................ 24,000 157,869 ----------- 2,140,271 ----------- TOTAL COMMON STOCKS (Cost $8,303,326)............. 10,280,177 SHORT-TERM HOLDINGS -- 2.8% (Cost $300,000)............... 300,000 ----------- TOTAL INVESTMENTS -- 98.5% (Cost $8,603,326)............. 10,580,177 OTHER ASSETS LESS LIABILITIES-- 1.5%............ 166,089 ----------- NET ASSETS-- 100.0% $10,746,266 ----------- ----------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-32 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HIGH-YIELD BOND PORTFOLIO PRINCIPAL AMOUNT VALUE ----------- ----------- CORPORATE BONDS -- 87.9% ADVERTISING -- 0.4% Adams Outdoor Advertising 10-3/4%, 3/15/2006............. $ 125,000 $ 137,187 ----------- AUTOMOTIVE AND RELATED -- 0.6% Diamond Triumph Automotive 9-1/4%, 4/1/2008+.............. 175,000 178,937 ----------- BROADCASTING -- 1.8% Capstar Broadcasting Partners 0% (12-3/4%**), 2/1/2009.......... 200,000 153,500 Cumulus Media 10-3/8%, 7/1/2008....................... 70,000 71,400 Paxson Communications 11-5/8%, 10/1/2002...................... 175,000 188,563 SFX Broadcasting 10-3/4%, 5/15/2006...................... 132,000 146,520 ----------- 559,983 ----------- CABLE SYSTEMS AND SATELLITE VIDEO-- 8.8% Charter Communications Southeast Holdings 11-1/4%, 3/15/2006..................... 250,000 276,875 Charter Communications Southeast Holdings 0% (14%**), 3/15/2007............ 325,000 268,937 CSC Holdings 10-1/2%, 5/15/2016..................... 175,000 205,187 Digital Television Services 12-1/2%, 8/1/2007.............. 200,000 229,000 EchoStar DBS 12-1/2%, 7/1/2002...................... 350,000 391,125 Intermedia Capital Partners IV, 11-1/4%, 8/1/2006+............. 425,000 484,500 Northland Cable Television 10-1/4%, 11/15/2007............ 200,000 214,500 Rogers Cablesystems 11%, 12/1/2015..................... 270,000 313,875 TCI Satellite Entertainment 10-7/8%, 2/15/2007............ 350,000 350,000 ----------- 2,733,999 ----------- CELLULAR -- 2.0% American Cellular 10-1/2%, 5/15/2008+.................... 150,000 150,375 PRINCIPAL AMOUNT VALUE ----------- ----------- CELLULAR (continued) Centennial Cellular 10-1/8%, 5/15/2005..................... $ 125,000 $ 140,625 Price Communications Wireless 11-3/4%, 7/15/2007............. 300,000 331,500 ----------- 622,500 ----------- CHEMICALS -- 1.0% Koppers Industries 9-7/8% 12/1/2007..................... 45,000 46,350 Marsulex 9-5/8%, 7/1/2008+........ 30,000 30,637 Texas Petrochemicals 11-1/8%, 7/1/2006...................... 200,000 218,000 ----------- 294,987 ----------- COMPUTER AND RELATED SERVICES -- 3.1% DecisionOne 9-3/4%, 8/1/2007...... 250,000 242,500 DecisionOne Holdings 0% (11-1/2%**), 8/1/2008.......... 220,000 134,200 Unisys 12%, 4/15/2003............ 250,000 283,125 Unisys 11-3/4%, 10/15/2004........ 250,000 289,688 ----------- 949,513 ----------- CONSUMER PRODUCTS -- 6.6% AKI 10-1/2%, 7/1/2008+............ 45,000 45,450 AKI Holding 0% (13-1/2%**), 7/1/2009+..................... 45,000 23,850 American Pad & Paper 13% 11/15/2005.................... 110,000 111,650 Amscan Holdings 9-7/8%, 12/15/2007.................... 200,000 203,000 Anchor Advanced Products 11-3/4%, 4/1/2004.............. 225,000 248,625 Carson 10-3/8%,11/1/2007.......... 150,000 154,875 Diamond Brands 0% (12-7/8%**), 4/15/2009+.................... 175,000 94,500 Diamond Brands Operating 10-1/8%, 4/15/2008+............ 150,000 151,125 French Fragrances 10-3/8%, 5/15/2007..................... 220,000 236,500 Global Health Sciences 11%, 5/1/2008+..................... 275,000 272,937 Iron Age 9-7/8%, 5/1/2008+........ 150,000 149,250 Iron Age Holdings 0% (12-1/8%**), 5/1/2009+..................... 80,000 45,200 Moll Industries 10-1/2%, 7/1/2008+ 125,000 128,125 - -------------- +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-33 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) PRINCIPAL AMOUNT VALUE ----------- ----------- CONSUMER PRODUCTS (continued) Ryder TRS 10%, 12/1/2006......... $ 150,000 $ 174,000 ----------- 2,039,087 ----------- CONTAINERS -- 0.7% U.S. Can 10-1/8%, 10/15/2006...... 215,000 227,900 ----------- ENERGY -- 1.1% Abraxas Petroleum 11-1/2%, 11/1/2004..................... 150,000 155,625 Gothic Production 11-1/8%, 5/1/2005+..................... 35,000 33,687 Universal Compression 0% (9-7/8%**), 2/15/2008+...... 95,000 60,325 Universal Compression Holdings 0% (11-3/8%**), 2/15/2009+..... 140,000 83,300 ----------- 332,937 ----------- EQUIPMENT -- 1.3% Neff 10-1/4%, 6/1/2008+........... 85,000 85,850 Williams Scotsman 9-7/8%, 6/1/2007...................... 300,000 313,500 ----------- 399,350 ----------- FINANCIAL SERVICES -- 2.3%........ AMRESCO 10%, 3/15/2004........... 210,000 216,825 Dollar Financial Group, 10-7/8%, 11/15/2006.................... 150,000 162,000 Ocwen Capital Trust I, 10-7/8%, 8/1/2027...................... 150,000 164,250 Veritas Capital Trust 10%, 1/1/2028...................... 150,000 157,875 ----------- 700,950 ----------- FOOD -- 3.1% AFC Enterprises 10-1/4%, 5/15/2007...................... 200,000 213,000 AmeriKing 10-3/4%, 12/1/2006...... 150,000 161,250 AmeriServe Food Distributors 10-1/8%, 7/15/2007............. 275,000 284,625 Gorges/Quik-to-Fix Foods 11-1/2%, 12/1/2006............. 100,000 99,500 Packaged Ice 9-3/4%, 2/1/2005+.... 200,000 204,000 ----------- 962,375 ----------- GAMING/HOTEL -- 8.1% Alliance Gaming 10%, 8/1/2007+..................... 125,000 125,312 PRINCIPAL AMOUNT VALUE ----------- ----------- GAMING/HOTEL (continued) Ameristar Casinos 10-1/2%, 8/1/2004...................... $ 250,000 $ 261,250 Aztar 13-3/4%, 10/1/2004.......... 100,000 114,000 Casino America 12-1/2%, 8/1/2003...................... 450,000 510,750 Casino Magic of Louisiana 13%, 8/15/2003..................... 150,000 173,250 Coast Hotels & Casinos 13%, 12/15/2002.................... 250,000 287,500 Fitzgeralds Gaming 12-1/4%, 12/15/2004.................... 150,000 147,750 Showboat Marina Casino Partnership 13-1/2%, 3/15/2003..................... 150,000 174,750 Trump Atlantic City Funding 11-1/4%, 5/1/2006.............. 450,000 438,750 Trump Hotels & Casino Resorts Funding 15-1/2%, 6/15/2005..... 250,000 282,500 ----------- 2,515,812 ----------- HEALTH CARE/MEDICAL PRODUCTS -- 5.1% Alaris Medical 9-3/4%, 12/1/2006.. 225,000 231,750 Alliance Imaging 9-5/8%, 12/15/2005.................... 150,000 152,250 Dade International 11-1/8%, 5/1/2006...................... 250,000 280,000 Everest Healthcare Services 9-3/4%, 5/1/2008+.............. 200,000 205,500 Graphic Controls 12%, 9/15/2005..................... 175,000 195,125 Paracelsus Healthcare 10%, 8/15/2006..................... 250,000 249,375 Pediatric Services of America 10%, 4/15/2008................ 100,000 99,500 Sun Healthcare Group 9-1/2%, 7/1/2007...................... 150,000 153,000 ----------- 1,566,500 ----------- INDUSTRIAL/ MANUFACTURING -- 3.2% Airxcel 11%, 11/15/2007.......... 200,000 210,500 Alliance Laundry Systems 9-5/8%, 5/1/2008+.............. 100,000 100,750 BPC Holding 12-1/2%, 6/15/2006.... 150,000 165,000 Coyne International Enterprises 11-1/4%, 6/1/2008+............. 130,000 130,975 - -------------- + 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-34 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) PRINCIPAL AMOUNT VALUE ----------- ----------- INDUSTRIAL/ MANUFACTURING (continued) Day International Group 9-1/2%, 3/15/2008..................... $ 150,000 $ 150,750 Great Lakes Acquisition 0% (13-1/8%**), 5/15/2009+........ 60,000 33,000 Great Lakes Carbon 10-1/4%, 5/15/2008+.................... 200,000 205,000 ----------- 995,975 ----------- LEISURE-- 2.5% Affinity Group Holding 11%, 4/1/2007................. 250,000 268,750 AMF Bowling Worldwide 0% (12-1/4%**), 3/15/2006......... 175,000 141,531 Premier Parks 12%, 8/15/2003..... 100,000 111,500 Premier Parks 9-1/4%, 4/1/2006.... 125,000 129,688 Premier Parks 0% (10%**), 4/1/2008...................... 175,000 117,031 ----------- 768,500 ----------- METALS -- 1.2% Renco Metals 11-1/2%, 7/1/2003.... 175,000 188,125 Royal Oak Mines 11%, 8/15/2006..................... 225,000 190,125 ----------- 378,250 ----------- PAGING -- 4.6% Metrocall 9-3/4%, 11/1/2007....... 300,000 306,000 Mobile Telecommunication Technologies 13-1/2%, 12/15/2002.................... 225,000 259,875 Paging Network 10%, 10/15/2008.................... 600,000 624,000 ProNet 11-7/8%, 6/15/2005......... 225,000 246,375 ----------- 1,436,250 ----------- PAPER AND PACKAGING -- 0.8%....... Crown Paper 11%, 9/1/2005........ 200,000 217,500 Graham Packaging 0% (10-3/4%**),1/15/2009+......... 55,000 34,650 ----------- 252,150 ----------- PRINTING AND PUBLISHING -- 4.5% Advanstar Communications 9-1/4%, 5/1/2008+..................... 225,000 227,531 PRINCIPAL AMOUNT VALUE ----------- ----------- PRINTING AND PUBLISHING (continued) American Lawyer Media 9-3/4%, 12/15/2007.................... $ 200,000 $ 208,000 American Lawyer Media Holdings 0% (12-1/4%**), 12/15/2008..... 45,000 28,856 Liberty Group Publishing 9-3/8%, 2/1/2008...................... 125,000 126,875 Liberty Group Publishing 0% (11-5/8%**), 2/1/2009.......... 175,000 105,875 NBC Acquisition 0% (10-3/4%**), 2/15/2009..................... 300,000 174,000 Perry-Judd 10-5/8%, 12/15/2007.... 100,000 105,500 Regional Independent Media Group 10-1/2%, 7/1/2008+....... 130,000 132,600 TransWestern Holdings 0% (11-7/8%**), 11/15/2008........ 250,000 165,000 Von Hoffman Press 10-3/8%, 5/15/2007+.................... 110,000 116,050 Von Hoffman Press 10-7/8%, 5/15/2007+.................... 15,000 15,769 ----------- 1,406,056 ----------- RECORD STORAGE -- 0.3% Pierce Leahy 11-1/8%, 7/15/2006... 75,000 84,188 ----------- RETAILING -- 2.8% Central Tractor 10-5/8%, 4/1/2007...................... 200,000 213,000 Cole National Group 9-7/8%, 12/31/2006.................... 150,000 162,750 Frank's Nursery & Crafts 10-1/4%, 3/1/2008+..................... 100,000 101,500 Musicland Group 9-7/8%, 3/15/2008..................... 175,000 172,813 SpinCycle 0% (12-3/4%**), 5/1/2005+..................... 35,000 25,025 TM Group Holdings 11%, 5/15/2008+.................... 175,000 180,031 ----------- 855,119 ----------- SUPERMARKETS -- 2.2% Jitney-Jungle Stores of America 12%, 3/1/2006................. 225,000 254,813 Jitney-Jungle Stores of America 10-3/8%, 9/15/2007............. 250,000 268,125 - -------------- + 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-35 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) PRINCIPAL AMOUNT VALUE ----------- ----------- SUPERMARKETS (continued) Pathmark Stores 11-5/8%, 6/15/2002....................... $ 150,000 $ 151,875 ----------- 674,813 ----------- TECHNOLOGY -- 3.2% Advanced Micro Devices 11%, 8/1/2003......................... 250,000 264,375 Hadco 9-1/2%, 6/15/2008+............ 125,000 125,000 MCMS 9-3/4%, 3/1/2008............... 175,000 162,750 Therma-Wave 10-5/8%, 5/15/2004...... 150,000 135,750 Viasystems 9-3/4%, 6/1/2007......... 300,000 297,750 ----------- 985,625 ----------- TELECOMMUNICATIONS -- 13.8% BTI Telecom 10-1/2%, 9/15/2007...... 250,000 251,250 Crown Castle International 0% (10-5/8%**),11/15/2007........... 200,000 137,500 Exodus Communications 11-1/4%, 7/1/2008+........................ 55,000 55,412 Facilicom International 10-1/2%, 1/15/2008........................ 325,000 321,750 GCI 9-3/4%, 8/1/2007................ 150,000 158,250 GlobalStar 11-1/4%, 6/15/2004....... 225,000 219,375 ICG Holdings 0% (11-5/8%**), 3/15/2007........................ 125,000 88,125 ITC DeltaCom 11%, 6/1/2007.......... 100,000 113,250 IXC Communications 9% 4/15/2008........................ 90,000 90,675 Level 3 Communications 9-1/8%, 5/1/2008......................... 180,000 176,175 MJD Communications 9-1/2%, 5/1/2008+........................ 70,000 71,750 Nextel Communications 0% (10.65%**), 9/15/2007............ 250,000 169,375 NEXTLINK Communications 12-1/2%, 4/15/2006............... 400,000 456,000 Pinnacle Holdings 0% (10%**), 3/15/2008........................ 550,000 363,000 Powertel 11-1/8%, 6/1/2007.......... 275,000 290,813 PSINet 10%, 2/15/2005............... 250,000 256,250 RCN 10%, 10/15/2007................. 190,000 196,175 Sprint Spectrum 11%, 8/15/2006...... 200,000 231,500 Talton Holdings 11%, 6/30/2007...... 200,000 216,000 Verio 13-1/2%, 6/15/2004+........... 50,000 57,500 Verio (units) 13-1/2%, 6/15/2004+. 100 142,000 Verio 10-3/8%, 4/1/2005+............ 125,000 129,063 PRINCIPAL AMOUNT OR SHARES VALUE ----------- ----------- TELECOMMUNICATIONS (continued) Viatel (units) 11-1/4%, 4/15/2008+.. 70 $ 73,500 ----------- 4,264,688 ----------- TEXTILES -- 0.4% Tropical Sportswear Int'l 11%, 6/15/2008+........... $ 125,000 126,563 ----------- THEATERS -- 1.2% Clearview Cinema Group 10-7/8%, 6/1/2008+....................... 125,000 127,813 Hollywood Theaters 10-5/8%, 8/1/2007........................ 250,000 260,000 ----------- 387,813 ----------- TRANSPORTATION -- 0.7% Atlas Air 10-3/4%, 8/1/2005......... 200,000 213,000 ----------- UTILITIES -- 0.5%................... Midland Cogeneration Venture 11-3/4%, 7/23/2005............... 125,000 150,346 ----------- TOTAL CORPORATE BONDS (Cost $26,457,575).............. 27,201,353 ----------- PREFERRED STOCKS -- 6.8% BROADCASTING -- 1.3% Capstar Broadcasting Partners 12%..................... 923 shs. 109,145 Cumulus Media 13-3/4%............... 40 41,100 SFX Broadcasting 12-3/4%............ 797 90,260 Sinclair Capital 11-5/8%............ 1,500 166,635 ----------- 407,140 ----------- CABLE SYSTEMS AND SATELLITE VIDEO -- 0.7% Pegasus Communications 12-3/4% (Series A)............... 128 144,534 Pegasus Communications (units) 12-3/4%.................. 50 58,125 ----------- 202,659 ----------- CELLULAR -- 0.5% Rural Cellular 11-3/8%+............. 165 165,825 ----------- FOOD -- 0.9% Nebco Evans Holding 11-1/4%......... 2,566 262,409 ----------- - --------------- + 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-36 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) SHARES VALUE ----------- ----------- HEALTH CARE/MEDICAL PRODUCTS -- 0.4% River Holding 11-1/2%+.............. 1,250 $ 127,188 ----------- INDUSTRIAL/ MANUFACTURING -- 0.3% Day International Group 12-1/4%..... 100 101,750 ----------- PRINTING AND PUBLISHING -- 0.8% Liberty Group Publishing 14-3/4%+... 8,869 232,799 ----------- TECHNOLOGY -- 0.3% MCMS 12-1/2%........................ 1,125 107,156 ----------- TELECOMMUNICATIONS -- 1.6% IXC Communications 12-1/2% (Series B)....................... 131 152,085 Nextel Communications 11-1/8%+...... 255 263,288 NEXTLINK Communications 14%......... 1,483 87,126 ----------- 502,499 ----------- SHARES VALUE ----------- ----------- TOTAL PREFERRED STOCKS (Cost $2,020,846).............. $ 2,109,425 ----------- CONVERTIBLE PREFERRED STOCKS -- 0.6% BROADCASTING -- 0.4% Chancellor Media $3+.............. 1,250 128,438 ----------- TELECOMMUNICATIONS -- 0.2% IXC Communications 6-3/4%+........ 1,160 55,825 ----------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $121,730)............... 184,263 ----------- SHORT-TERM HOLDINGS -- 2.9% (Cost $900,000)............... 900,000 ----------- TOTAL INVESTMENTS -- 98.2% (Cost $29,500,151)............ 30,395,041 OTHER ASSETS LESS LIABILITIES-- 1.8% ........... 555,598 ----------- NET ASSETS-- 100.0%.............. $30,950,639 ----------- ----------- - ----------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 41.8% AEROSPACE -- 1.2% General Dynamics................. 3,800 $ 176,700 ----------- AUTOMOTIVE AND RELATED -- 2.0% Chrysler......................... 3,600 202,950 Eaton............................ 1,100 85,525 ----------- 288,475 ----------- BANKING AND FINANCE -- 4.5% Ahmanson (H.F.).................. 2,700 191,700 BankAmerica...................... 900 77,794 Bank of New York................. 2,200 133,512 Citicorp......................... 800 119,400 Hartford Financial Services Group......................... 1,100 125,812 ----------- 648,218 ----------- CHEMICALS -- 1.5% duPont (E.I.) de Nemours......... 1,300 97,012 Goodrich (B.F.).................. 2,400 119,100 ----------- 216,112 ----------- SHARES VALUE ----------- ----------- CONSUMER GOODS AND SERVICES -- 6.5% Anheuser-Busch................... 1,400 $ 66,062 Avon Products.................... 1,700 131,750 General Mills.................... 2,500 170,937 Kimberly-Clark................... 2,000 91,750 RJR Nabisco Holdings............. 1,700 40,375 Russell.......................... 3,600 108,675 Sara Lee......................... 4,300 240,531 The Stanley Works................ 2,100 87,281 ----------- 937,361 ----------- DIVERSIFIED -- 0.4% Alexander & Baldwin.............. 2,100 61,031 ----------- DRUGS AND HEALTH CARE -- 2.4% American Home Products........... 2,200 113,850 Bristol-Myers Squibb............. 2,000 229,875 ----------- 343,725 ----------- - -------------- + Rule 144A security. See Notes to Financial Statements. P-37 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN INCOME PORTFOLIO (continued) SHARES VALUE ----------- ----------- ELECTRIC AND GAS UTILITIES -- 3.7% FPL Group........................ 2,500 $ 157,500 Unicom........................... 4,700 164,794 The Williams Companies........... 6,000 202,500 ----------- 524,794 ----------- ENERGY -- 5.6% Exxon............................ 1,900 135,494 Mobil............................ 1,900 145,587 Royal Dutch Petroleum (Netherlands)................. 2,300 126,069 Texaco........................... 3,600 214,875 Unocal........................... 5,100 182,325 ----------- 804,350 ----------- FOOD -- 0.8% ConAgra.......................... 3,600 114,075 ----------- INSURANCE -- 3.7% American General................. 2,200 156,613 Lincoln National................. 1,500 137,063 Marsh & McLennan................. 2,250 135,984 St. Paul Companies............... 2,600 109,363 ----------- 539,023 ----------- MACHINERY AND EQUIPMENT -- 1.5% GATX............................. 4,800 210,600 ----------- METALS AND MINING -- 0.8% Allegheny Teledyne............... 5,100 116,663 ----------- PAPER AND PACKAGING -- 1.1% Mead............................. 1,800 57,150 Union Camp....................... 1,100 54,588 Weyerhaeuser..................... 1,100 50,806 ----------- 162,544 ----------- RETAILING -- 2.0% May Department Stores............ 1,900 124,450 Penney (J.C.).................... 2,300 166,319 ----------- 290,769 ----------- TOBACCO -- 1.2% Philip Morris.................... 4,400 173,250 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ----------- ----------- TRANSPORTATION -- 0.4% Norfolk Southern................. 1,800 $ 53,663 ----------- UTILITIES/ TELECOMMUNICATIONS -- 2.5% GTE.............................. 3,700 shs. 205,813 SBC Communications............... 4,000 160,000 ----------- 365,813 ----------- TOTAL COMMON STOCKS (Cost $5,311,888)............. 6,027,166 ----------- CORPORATE BONDS -- 28.3% AUTOMOTIVE -- 3.9% Chrysler Financial 6.09%, 4/6/2001...................... $ 300,000 300,963 Ford Motor Credit 6-3/4%, 8/15/2008..................... 250,000 259,207 ----------- 560,170 ----------- BANKING AND FINANCE -- 4.6% Associates Corp. of North America 6-1/2%, 8/15/2002...... 300,000 304,889 Capital One Bank 8-1/8%, 3/1/2000...................... 250,000 257,689 First USA Bank 5-3/4%, 1/15/1999.. 100,000 99,978 ----------- 662,556 ----------- ELECTRIC AND GAS UTILITIES -- 2.1% Consumers Energy 6-3/8%, 2/1/2008+..................... 300,000 299,089 ----------- ENERGY -- 3.0% Petroleum Geo-Services 7-1/2%, 3/31/2007..................... 400,000 435,169 ----------- FUNERAL SERVICES -- 2.1% Loewen Group International 7-1/2%, 4/15/2001.............. 300,000 305,562 ----------- MEDIA -- 6.0% Time Warner 7-3/4%, 6/15/2005..... 500,000 536,895 Viacom 7-3/4%, 6/1/2005........... 300,000 321,371 ----------- 858,266 ----------- - -------------- + Rule 144A security. See Notes to Financial Statements. P-38 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN INCOME PORTFOLIO (continued) PRINCIPAL AMOUNT VALUE ----------- ----------- RETAILING -- 3.8% Federated Department Stores 10%, 2/15/2001................ $ 500,000 $ 546,156 ----------- TECHNOLOGY -- 2.8% Dell Computer 6.55%, 4/15/2008... 400,000 406,240 ----------- OTHER............................ 1,700 ----------- TOTAL CORPORATE BONDS (Cost $4,115,111)............. 4,074,908 ----------- US GOVERNMENT SECURITIES -- 20.4% US Treasury Notes 6-1/4%, 6/30/2002..................... 500,000 512,501 US Treasury Notes 5-3/4%, 11/30/2002.................... 300,000 302,531 US Treasury Notes 6-1/2%, 5/15/2005..................... 500,000 527,969 US Treasury Notes 6-1/2%, 10/15/2006.................... 500,000 531,250 US Treasury Notes 6-5/8%, 5/15/2007..................... 1,000,000 1,075,001 ----------- TOTAL US GOVERNMENT SECURITIES (Cost $2,894,881).. 2,949,252 ----------- SHARES VALUE ----------- ----------- CONVERTIBLE PREFERRED STOCKS -- 4.7% BANKING AND FINANCE -- 2.5% Salomon Smith Barney 7-5/8% ....... 7,500 $ 357,187 ----------- INSURANCE -- 2.2% St. Paul Capital 6%............... 4,500 324,000 ----------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $439,020)............... 681,187 ----------- SHORT-TERM HOLDINGS -- 2.8% (Cost $400,000)............... 400,000 ----------- TOTAL INVESTMENTS -- 98.0% (Cost $13,160,900)............ 14,132,513 OTHER ASSETS LESS LIABILITIES-- 2.0%............. 287,442 ----------- NET ASSETS-- 100.0%............... $14,419,955 ----------- ----------- - ------------ See Notes to Financial Statements. P-39 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PORTFOLIOS OF INVESTMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ SELIGMAN LARGE-CAP VALUE PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 80.7% AEROSPACE -- 3.1% Goodrich (B.F.).................. 700 $ 34,738 ----------- AUTOMOTIVE AND RELATED -- 6.4% Ford Motor....................... 550 32,450 General Motors................... 600 40,088 ----------- 72,538 ----------- BANKING -- 9.4% BankAmerica...................... 300 25,931 Bank of New York................. 700 42,481 Summit Bancorp................... 800 38,000 ----------- 106,412 ----------- ENERGY -- 3.2% Texaco........................... 600 35,812 ----------- FINANCE AND INSURANCE -- 11.1% The Equitable Companies.......... 600 44,963 Travelers........................ 600 36,375 Washington Mutual................ 1,025 44,491 ----------- 125,829 ----------- FOOD -- 4.4% Dole Food........................ 1,000 49,688 ----------- HOUSEHOLD PRODUCTS AND FURNISHINGS -- 10.3% Armstrong World Industries....... 500 33,687 Dial............................. 1,800 46,688 Kimberly-Clark................... 800 36,700 ----------- 117,075 ----------- INDUSTRIAL EQUIPMENT -- 4.0% General Electric................. 500 45,500 ----------- SHARES VALUE ----------- ----------- MEDICAL PRODUCTS AND TECHNOLOGY -- 2.4% Baxter International............. 500 $ 26,906 ----------- OFFICE EQUIPMENT -- 3.6% Xerox............................ 400 40,650 ----------- PACKAGING -- 2.1% Crown Cork & Seal................ 500 23,750 ----------- PAPER AND FOREST PRODUCTS -- 5.6% Champion International........... 500 24,594 Georgia-Pacific.................. 650 38,309 ----------- 62,903 ----------- RETAIL TRADE -- 7.8% May Department Stores............ 400 26,200 Penney (J.C.).................... 350 25,309 Sears, Roebuck................... 600 36,638 ----------- 88,147 ----------- SPECIALTY MATERIALS -- 3.3% Raychem.......................... 1,250 36,953 ----------- TOBACCO -- 4.0% Philip Morris.................... 1,150 45,281 ----------- TOTAL INVESTMENTS -- 80.7% (Cost $921,679)............... 912,182 OTHER ASSETS LESS LIABILITIES-- 19.3%........... 218,016 ----------- NET ASSETS-- 100.0%.............. $ 1,130,198 ----------- ----------- - -------------- See Notes to Financial Statements. P-40 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ June 30, 1998 - ------------------------------------------------------------------------------ SELIGMAN SMALL-CAP VALUE PORTFOLIO SHARES VALUE ----------- ----------- COMMON STOCKS -- 77.7% ADVERTISING -- 2.9% True North Communications........ 1,000 $ 29,250 ----------- APPAREL AND TEXTILES -- 3.3% Cutter & Buck*................... 1,250 33,516 ----------- BUILDING AND CONSTRUCTION -- 1.9% Dal-Tile International*.......... 1,900 18,644 ----------- CAPITAL GOODS -- 6.9% Apogee Enterprises............... 2,200 33,687 BMC Industries................... 4,100 35,875 ----------- 69,562 ----------- COMPUTER SOFTWARE -- 3.3% Dialogic*........................ 1,100 32,587 ----------- DISTRIBUTORS -- 5.3% Cubic............................ 1,050 25,069 Elsag Bailey Process Auto (ADRs)* (Netherlands)......... 1,150 27,672 ----------- 52,741 ----------- GARDEN PRODUCTS -- 2.7% Acorn Products*.................. 3,700 26,594 ----------- INDUSTRIAL GOODS AND SERVICES -- 3.6% Furon............................ 2,000 36,250 ----------- MACHINERY -- 3.6% Stewart & Stevenson Services..... 2,000 35,750 ----------- MANUFACTURING -- 3.3% Mueller Industries*.............. 900 33,413 ----------- MEDICAL PRODUCTS AND TECHNOLOGY -- 3.3% ChiRex*.......................... 1,900 33,309 ----------- SHARES VALUE ----------- ----------- OIL AND GAS -- 6.9% Friede Goldman International*.... 1,400 $ 40,381 Marine Drilling*................. 1,800 28,744 ----------- 69,125 ----------- PLASTICS -- 2.5% Lamson & Sessions*............... 4,000 24,750 ----------- PRINTING AND PUBLISHING -- 6.4% Cadmus Communications............ 1,550 37,684 Merrill.......................... 1,200 26,587 ----------- 64,271 ----------- RESTAURANTS -- 6.5% Apple South...................... 2,100 27,431 Foodmaker*....................... 2,250 37,969 ----------- 65,400 ----------- RETAIL TRADE -- 5.6% Abercrombie & Fitch (Class A)* ................... 700 30,800 The Wet Seal (Class A)*.......... 800 25,700 ----------- 56,500 ----------- SPECIALTY CHEMICALS -- 3.7% Dexter........................... 1,150 36,584 ----------- SPECIALTY METALS/STEEL -- 2.6% Olympic Steel*................... 2,100 26,513 ----------- TOBACCO -- 3.4% Consolidated Cigar Holding*...... 2,800 34,300 ----------- TOTAL INVESTMENTS -- 77.7% (Cost $832,508)................ 779,059 OTHER ASSETS LESS LIABILITIES-- 22.3%............ 224,230 ----------- NET ASSETS-- 100.0%.............. $ 1,003,289 ----------- ----------- - ------------- * Non-income producing security. See Notes to Financial Statements. P-41 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF ASSETS AND LIABILITIES (unaudited) June 30, 1998 - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN COMMUNICATIONS SELIGMAN SELIGMAN CASH COMMON AND BOND CAPITAL MANAGEMENT STOCK INFORMATION PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- ---------- ---------- ---------- ----------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings................. $6,306,152 $20,995,604 $ 3,897 $56,546,746 $100,128,979 Short-term holdings................ 250,000 2,600,000 8,918,606 2,300,000 3,500,000 ---------- ----------- ---------- ----------- ------------ Total Investments.................. 6,556,152 23,595,604 8,922,503 58,846,746 103,628,979 Cash............................... 195,210 54,831 229,892 -- 28,660 Interest and dividends receivable...................... 87,957 6,659 70,491 93,333 13,437 Receivable for Capital Stock sold...................... 4,526 625 -- 12,749 221,434 Receivable from associated companies....................... 1,929 29,995 4,991 -- -- Receivable for securities sold..... -- -- -- 51,128 1,155,732 Unrealized appreciation on foreign currencies and forward currency contracts...... -- -- -- -- -- Other.............................. -- -- -- -- -- ---------- ----------- ---------- ----------- ------------ TOTAL ASSETS....................... 6,845,774 23,687,714 9,227,877 59,003,956 105,048,242 ---------- ----------- ---------- ----------- ------------ LIABILITIES: Payable for securities purchased... 199,062 147,000 -- 307,279 526,534 Payable for Capital Stock redeemed........................ 55 726 28 16,042 -- Payable to custodian............... -- -- -- 195,431 -- Unrealized depreciation on foreign currencies and forward currency contracts...... -- -- -- -- -- Accrued expenses, taxes, and other....................... 16,103 26,510 14,893 43,280 100,392 ---------- ----------- ---------- ----------- ------------ TOTAL LIABILITIES.................. 215,220 174,236 14,921 562,032 626,926 ---------- ----------- ---------- ----------- ------------ NET ASSETS......................... $6,630,554 $23,513,478 $9,212,956 $58,441,924 $104,421,316 ---------- ----------- ---------- ----------- ------------ ---------- ----------- ---------- ----------- ------------ COMPOSITION OF NET ASSETS: Capital Stock, at par.............. $ 624 $ 1,140 $ 9,213 $ 3,172 $ 7,052 Additional paid-in-capital......... 6,209,237 16,545,864 9,204,143 43,428,730 98,494,644 Undistributed/accumulated net investment income (loss)........ 186,257 12,037 -- 460,675 (248,658) Undistributed/accumulated net realized gain (loss)............ 61,122 3,170,399 (327) 2,966,132 3,581,574 Net unrealized appreciation (depreciation) of investments... 173,314 3,784,038 (73) 11,583,215 2,586,704 Net unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts...... -- -- -- -- -- ---------- ----------- ---------- ----------- ------------ NET ASSETS......................... $6,630,554 $23,513,478 $9,212,956 $58,441,924 $104,421,316 ---------- ----------- ---------- ----------- ------------ ---------- ----------- ---------- ----------- ------------ SHARES OF CAPITAL STOCK OUTSTANDING ($0.001 par value).............. 624,036 1,140,211 9,213,356 3,172,204 7,052,179 ---------- ----------- ---------- ----------- ------------ ---------- ----------- ---------- ----------- ------------ NET ASSET VALUE PER SHARE.......... $10.63 $20.62 $1.00 $18.42 $14.81 ---------- ----------- ---------- ----------- ------------ ---------- ----------- ---------- ----------- ------------
- -------------- See Notes to Financial Statements. P-42 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued) June 30, 1998 - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN HENDERSON HENDERSON HENDERSON SELIGMAN SELIGMAN GLOBAL GROWTH GLOBAL SMALLER GLOBAL HENDERSON FRONTIER OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ---------- ----------- ---------- ----------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings................. $46,008,484 $7,544,096 $21,794,303 $4,777,878 $10,280,177 Short-term holdings................ 7,200,000 500,000 1,200,000 350,000 300,000 ----------- ---------- ----------- ---------- ----------- Total Investments.................. 53,208,484 8,044,096 22,994,303 5,127,878 10,580,177 Cash............................... 98,416 424,823 354,698 200,982 237,310 Interest and dividends receivable...................... 2,260 15,081 50,891 2,949 56,656 Receivable for Capital Stock sold...................... 4,279 -- 1,259 17,696 7,206 Receivable from associated companies....................... -- 1,387 1,514 2,828 3,475 Receivable for securities sold..... 641,097 10,634 175,999 47,482 7,095 Unrealized appreciation on foreign currencies and forward currency contracts...... -- 12,058 25,393 -- 19,186 Other.............................. -- -- -- 1,333 -- ----------- ---------- ----------- ---------- ----------- TOTAL ASSETS....................... 53,954,536 8,508,079 23,604,057 5,401,148 10,911,105 ----------- ---------- ----------- ---------- ----------- LIABILITIES: Payable for securities purchased... 606,286 382,208 116,398 42,607 126,410 Payable for Capital Stock redeemed........................ 5,444,133 5,177 9,463 -- 14,110 Payable to custodian............... -- -- -- -- -- Unrealized depreciation on foreign currencies and forward currency contracts...... -- 100 208 -- 68 Accrued expenses, taxes, and other....................... 52,977 16,545 36,331 13,242 24,251 ----------- ---------- ----------- ---------- ----------- TOTAL LIABILITIES.................. 6,103,396 404,030 162,400 55,849 164,839 ----------- ---------- ----------- ---------- ----------- NET ASSETS......................... $47,851,140 $8,104,049 $23,441,657 $5,345,299 $10,746,266 ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- ---------- ----------- COMPOSITION OF NET ASSETS: Capital Stock, at par.............. $ 2,797 $ 616 $ 1,555 $ 415 $ 672 Additional paid-in-capital......... 40,994,502 6,676,395 19,731,469 4,591,586 8,235,517 Undistributed/accumulated net investment income (loss)........ (112,576) 32,884 (5,589) (5,967) 59,239 Undistributed/accumulated net realized gain (loss)............ 3,695,945 (17,899) 446,630 256,828 454,600 Net unrealized appreciation (depreciation) of investments... 3,270,472 1,544,433 3,832,090 532,396 2,199,147 Net unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts...... -- (132,380) (564,498) (29,959) (202,909) ----------- ---------- ----------- ---------- ----------- NET ASSETS......................... $47,851,140 $8,104,049 $23,441,657 $5,345,299 $10,746,266 ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- ---------- ----------- SHARES OF CAPITAL STOCK OUTSTANDING ($0.001 par value).............. 2,797,285 615,837 1,554,735 415,184 671,896 ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- ---------- ----------- NET ASSET VALUE PER SHARE.......... $17.11 $13.16 $15.08 $12.87 $15.99 ----------- ---------- ----------- ---------- ----------- ----------- ---------- ----------- ---------- -----------
SELIGMAN SELIGMAN SELIGMAN HIGH-YIELD SELIGMAN LARGE-CAP SMALL-CAP BOND INCOME VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ---------- ---------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings................. $29,495,041 $13,732,513 $ 912,182 $ 779,059 Short-term holdings................ 900,000 400,000 -- -- ----------- ----------- ---------- ---------- Total Investments 30,395,041 14,132,513 912,182 779,059 Cash............................... 76,671 185,491 217,122 281,514 Interest and dividends receivable...................... 633,902 110,090 893 337 Receivable for Capital Stock sold...................... 12,795 8,566 -- 6 Receivable from associated companies....................... 1,532 -- 2,516 2,525 Receivable for securities sold..... 228,734 12,201 -- -- Unrealized appreciation on foreign currencies and forward currency contracts...... -- -- -- -- Other.............................. -- -- 1,667 1,667 ----------- ----------- ---------- ---------- TOTAL ASSETS....................... 31,348,675 14,448,861 1,134,380 1,065,108 ----------- ----------- ---------- ---------- LIABILITIES: Payable for securities purchased... 364,826 -- -- 57,590 Payable for Capital Stock redeemed........................ -- 6,853 10 -- Payable to custodian............... -- -- -- -- Unrealized depreciation on foreign currencies and forward currency contracts...... -- -- -- -- Accrued expenses, taxes, and other....................... 33,210 22,053 4,172 4,229 ----------- ----------- ---------- ---------- TOTAL LIABILITIES.................. 398,036 28,906 4,182 61,819 ----------- ----------- ---------- ---------- NET ASSETS......................... $30,950,639 $14,419,955 $1,130,198 $1,003,289 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ---------- COMPOSITION OF NET ASSETS: Capital Stock, at par.............. $ 2,464 $ 1,263 $ 114 $ 110 Additional paid-in-capital......... 28,596,710 12,791,440 1,134,535 1,050,444 Undistributed/accumulated net investment income (loss)........ 1,251,947 288,337 314 (568) Undistributed/accumulated net realized gain (loss)............ 204,628 367,302 4,732 6,752 Net unrealized appreciation (depreciation) of investments... 894,890 971,613 (9,497) (53,449) Net unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts...... -- -- -- -- ----------- ----------- ---------- ---------- NET ASSETS......................... $30,950,639 $14,419,955 $1,130,198 $1,003,289 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ---------- SHARES OF CAPITAL STOCK OUTSTANDING ($0.001 par value).............. 2,463,568 1,263,251 113,914 109,613 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ---------- NET ASSET VALUE PER SHARE.......... $12.56 $11.41 $9.92 $9.15 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
P-43 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF OPERATIONS (unaudited) - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN COMMUNICATIONS SELIGMAN SELIGMAN CASH COMMON AND BOND CAPITAL MANAGEMENT STOCK INFORMATION PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- ---------- ---------- ---------- ----------- INVESTMENT INCOME: Interest........................... $210,345 $ 36,350 $251,694 $ 71,108 $ 142,152 Dividends.......................... -- 45,312 -- 499,500 39,927 -------- ---------- -------- ----------- ---------- TOTAL INVESTMENT INCOME**.......... 210,345 81,662 251,694 570,608 182,079 -------- ---------- -------- ----------- ---------- EXPENSES:.......................... Management fee..................... 13,286 43,427 18,841 109,969 370,134 Auditing fee....................... 2,937 5,137 3,537 9,937 16,587 Shareholder reports and communications.................. 2,791 2,791 2,791 2,791 2,691 Registration....................... 2,402 3,466 2,291 5,710 7,816 Directors' fees and expenses....... 2,317 2,411 2,338 2,623 2,902 Custody and related services....... 1,623 7,055 1,871 7,681 27,457 Legal fee.......................... 766 766 766 766 766 Miscellaneous...................... 692 522 356 708 723 -------- ---------- -------- ----------- ---------- TOTAL EXPENSES BEFORE WAIVER/REIMBURSEMENT............ 26,814 65,575 32,791 140,185 429,076 Waiver/reimbursement of expenses........................ (6,869) (438) (32,791) -- -- -------- ---------- -------- ----------- ---------- TOTAL EXPENSES AFTER WAIVER/REIMBURSEMENT............ 19,945 65,137 -- 140,185 429,076 -------- ---------- -------- ----------- ---------- NET INVESTMENT INCOME (LOSS)....... 190,400 16,525 251,694 430,423 (246,997) -------- ---------- -------- ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain on investments... 113,020 3,033,222 71 2,964,546 3,581,574 Net realized loss from foreign currency transactions........... -- -- -- -- -- Net change in unrealized appreciation/depreciation of investments.................. (48,643) (200,220) (73) 3,329,956 8,312,783 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.................... 64,377 2,833,002 (2) 6,294,502 11,894,357 -------- ---------- -------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.......... $254,777 $2,849,527 $251,692 $6,724,925 $11,647,360 -------- ---------- -------- ----------- ----------- -------- ---------- -------- ----------- ----------- - -------------------- * For the period May 1, 1998, commencement of operations, to June 30, 1998. ** Net of foreign tax withheld as follows: $ -- $ -- $ -- $ 2,173 $ 757
See Notes to Financial Statements. P-44 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ For the Six Months Ended June 30, 1998 - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN HENDERSON HENDERSON HENDERSON SELIGMAN SELIGMAN GLOBAL GROWTH GLOBAL SMALLER GLOBAL HENDERSON FRONTIER OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ---------- ----------- ---------- ----------- INVESTMENT INCOME: Interest........................... $ 72,150 $ 12,005 $ 33,293 $ 12,928 $ 6,486 Dividends.......................... 31,096 46,532 132,001 11,307 132,342 ---------- ---------- ---------- -------- ---------- TOTAL INVESTMENT INCOME**.......... 103,246 58,537 165,294 24,235 138,828 ---------- ---------- ---------- -------- ---------- EXPENSES:.......................... Management fee..................... 176,869 34,398 111,873 22,977 50,464 Auditing fee....................... 8,437 3,087 5,287 2,737 3,487 Shareholder reports and communications.................. 2,691 2,657 2,657 2,657 2,657 Registration....................... 3,881 2,440 2,918 2,318 2,431 Directors' fees and expenses....... 2,563 2,295 2,407 2,283 2,331 Custody and related services....... 18,289 12,364 39,592 7,844 29,285 Legal fee.......................... 766 885 885 885 885 Miscellaneous...................... 707 779 785 641 520 ---------- ---------- ---------- -------- ---------- TOTAL EXPENSES BEFORE WAIVER/REIMBURSEMENT............ 214,203 58,905 166,404 42,342 92,060 Waiver/reimbursement of expenses........................ -- (10,749) (9,785) (10,187) (21,417) ---------- ---------- ---------- -------- ---------- TOTAL EXPENSES AFTER WAIVER/REIMBURSEMENT............ 214,203 48,156 156,619 32,155 70,643 ---------- ---------- ---------- -------- ---------- NET INVESTMENT INCOME (LOSS)....... (110,957) 10,381 8,675 (7,920) 68,185 ---------- ---------- ---------- -------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain on investments... 3,695,945 15,850 632,728 266,846 512,579 Net realized loss from foreign currency transactions........... -- (11,718) (198,762) (7,239) (63,984) Net change in unrealized appreciation/depreciation of investments.................. 230,618 1,132,829 2,688,774 557,567 1,106,647 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts.. -- (11,681) 137,585 1,651 43,061 ---------- ---------- ---------- -------- ---------- NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS.................... 3,926,563 1,125,280 3,260,325 818,825 1,598,303 ---------- ---------- ---------- -------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.......... $3,815,606 $1,135,661 $3,269,000 $810,905 $1,666,488 ---------- ---------- ---------- -------- ---------- ---------- ---------- ---------- -------- ---------- - -------------------- * For the period May 1, 1998, commencement of operations, to June 30, 1998. ** Net of foreign tax withheld as follows: $ -- $ 5,090 $ 19,313 $ 1,622 $ 16,148 ---------- ---------- ---------- -------- ----------
SELIGMAN SELIGMAN SELIGMAN HIGH-YIELD SELIGMAN LARGE-CAP SMALL-CAP BOND INCOME VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ---------- ---------- ASSETS: Interest........................... $1,271,046 $222,626 $ -- $ -- Dividends.......................... 67,773 97,124 1,139 370 ---------- -------- ------- -------- TOTAL INVESTMENT INCOME**.......... 1,338,819 319,750 1,139 370 ---------- -------- ------- -------- EXPENSES:.......................... Management fee..................... 68,431 28,354 825 938 Auditing fee....................... 6,037 4,037 1,050 1,050 Shareholder reports and communications.................. 2,691 2,787 1,000 1,000 Registration....................... 3,894 2,090 374 374 Directors' fees and expenses....... 2,417 2,369 863 871 Custody and related services....... 18,726 2,198 960 960 Legal fee.......................... 766 766 312 312 Miscellaneous...................... 522 695 267 267 ---------- -------- ------- -------- TOTAL EXPENSES BEFORE WAIVER/REIMBURSEMENT............ 103,484 43,296 5,651 5,772 Waiver/reimbursement of expenses........................ (7,678) (765) (4,826) (4,834) ---------- -------- ------- -------- TOTAL EXPENSES AFTER WAIVER/REIMBURSEMENT............ 95,806 42,531 825 938 ---------- -------- ------- -------- NET INVESTMENT INCOME (LOSS)....... 1,243,013 277,219 314 (568) ---------- -------- ------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain on investments... 204,628 366,405 4,732 6,752 Net realized loss from foreign currency transactions........... -- -- -- -- Net change in unrealized appreciation/depreciation of investments.................. 58,938 137,960 (9,497) (53,449) 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.................... 263,566 504,365 (4,765) (46,697) ---------- -------- ------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.......... $1,506,579 $781,584 $(4,451) $(47,265) ---------- -------- ------- -------- ---------- -------- ------- -------- - -------------------- * For the period May 1, 1998, commencement of operations, to June 30, 1998. ** Net of foreign tax withheld as follows: $ -- $ 318 $ -- $ --
P-45 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN BOND PORTFOLIO CAPITAL PORTFOLIO CASH MANAGEMENT PORTFOLIO ------------------------- ------------------------ ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- ---------- ----------- ----------- ----------- ---------- OPERATIONS: Net investment income (loss)............. $ 190,400 $ 359,627 $ 16,525 $ 28,503 $ 251,694 $ 512,275 Net realized gain on investments......... 113,020 2,573 3,033,222 1,456,363 71 -- Net realized loss from foreign currency transactions................. -- -- -- -- -- -- Net change in unrealized appreciation/ depreciation of investments........... (48,643) 158,584 (200,220) 1,876,910 (73) -- Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. -- -- -- -- -- -- ---------- ---------- ----------- ----------- ---------- ---------- INCREASE IN NET ASSETS FROM OPERATIONS............................ 254,777 520,784 2,849,527 3,361,776 251,692 512,275 ---------- ---------- ----------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.................... -- (360,523) -- (29,292) (251,694) (512,275) Realized gain on investments............. -- -- -- (1,319,186) -- -- ---------- ---------- ----------- ----------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS.................... -- (360,523) -- (1,348,478) (251,694) (512,275) ---------- ---------- ----------- ----------- ---------- ---------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares......... 851,803 3,014,160 4,911,925 7,491,753 12,176,616 25,875,970 Investment of dividends.................. -- 360,523 -- 29,292 251,694 512,275 Shares issued in payment of gain distributions......................... -- -- -- 1,319,186 -- -- ---------- ---------- ----------- ----------- ---------- ---------- Total.................................... 851,803 3,374,683 4,911,925 8,840,231 12,428,310 26,388,245 ---------- ---------- ----------- ----------- ---------- ---------- Cost of shares redeemed.................. (1,708,063) (1,317,788) (4,647,766) (4,766,794) (11,850,638) (27,507,851) ---------- ---------- ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... (856,260) 2,056,895 264,159 4,073,437 577,672 (1,119,606) ---------- ---------- ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS............................ (601,483) 2,217,156 3,113,686 6,086,735 577,670 (1,119,606) ---------- ---------- ----------- ----------- ---------- ---------- NET ASSETS: Beginning of Period...................... 7,232,037 5,014,881 20,399,792 14,313,057 8,635,286 9,754,892 ---------- ---------- ----------- ----------- ---------- ---------- END OF PERIOD............................ $6,630,554 $7,232,037 $23,513,478 $20,399,792 $9,212,956 $8,635,286 ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- ---------- ----------
- ---------------- See Notes to Financial Statements. P-46 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN COMMON STOCK COMMUNICATIONS AND PORTFOLIO INFORMATION PORTFOLIO ------------------------- ------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- ----------- ------------ ----------- OPERATIONS: Net investment income (loss)............. $ 430,423 $ 858,211 $ (246,997) $ (378,304) Net realized gain on investments......... 2,964,546 6,975,977 3,581,574 25,855,124 Net realized loss from foreign currency transactions................. -- -- -- -- Net change in unrealized appreciation/ depreciation of investments........... 3,329,956 523,788 8,312,783 (10,538,214) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. -- -- -- -- ----------- ----------- ------------ ----------- INCREASE IN NET ASSETS FROM OPERATIONS............................ 6,724,925 8,357,976 11,647,360 14,938,606 ----------- ----------- ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.................... -- (827,581) -- -- Realized gain on investments............. -- (6,979,440) -- (22,307,569) ----------- ----------- ------------ ----------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS.................... -- (7,807,021) -- (22,307,569) ----------- ----------- ------------ ----------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares......... 4,617,784 12,649,970 90,114,474 50,718,332 Investment of dividends.................. -- 827,581 -- -- Shares issued in payment of gain distributions......................... -- 6,979,440 -- 22,307,569 ----------- ----------- ------------ ----------- Total.................................... 4,617,784 20,456,991 90,114,474 73,025,901 ----------- ----------- ------------ ----------- Cost of shares redeemed.................. (3,637,948) (7,439,183) (84,973,355) (38,669,048) ----------- ----------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... 979,836 13,017,808 5,141,119 34,356,853 ----------- ----------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS............................ 7,704,761 13,568,763 16,788,479 26,987,890 NET ASSETS: Beginning of Period...................... 50,737,163 37,168,400 87,632,837 60,644,947 ----------- ----------- ------------ ----------- END OF PERIOD............................ $58,441,924 $50,737,163 $104,421,316 $87,632,837 ----------- ----------- ------------ ----------- ----------- ----------- ------------ -----------
SELIGMAN HENDERSON SELIGMAN GLOBAL GROWTH FRONTIER PORTFOLIO OPPORTUNITIES PORTFOLIO ----------------------- ------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- ---------- ----------- ---------- ----------- ----------- ---------- ---------- OPERATIONS: Net investment income (loss)............. $ (110,957) $ (184,281) $ 10,381 $ 283 Net realized gain on investments......... 3,695,945 4,064,832 15,850 141,228 Net realized loss from foreign currency transactions................. -- -- (11,718) (73,436) Net change in unrealized appreciation/ depreciation of investments........... 230,618 1,855,841 1,132,829 381,018 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. -- -- (11,681) (112,875) ----------- ----------- ---------- ---------- INCREASE IN NET ASSETS FROM OPERATIONS............................ 3,815,606 5,736,392 1,135,661 336,218 ----------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.................... -- -- -- -- Realized gain on investments............. -- (3,889,283) -- (60,644) ----------- ----------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS.................... -- (3,889,283) -- (60,644) ----------- ----------- ---------- ---------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares......... 111,352,340 18,870,587 2,086,987 4,394,619 Investment of dividends.................. -- -- -- -- Shares issued in payment of gain distributions......................... -- 3,889,283 -- 60,644 ----------- ----------- ---------- ---------- Total.................................... 111,352,340 22,759,870 2,086,987 4,455,263 ----------- ----------- ---------- ---------- Cost of shares redeemed.................. (110,290,079) (13,305,727) (567,831) (871,295) ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... 1,062,261 9,454,143 1,519,156 3,583,968 ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS............................ 4,877,867 11,301,252 2,654,817 3,859,542 NET ASSETS: Beginning of Period...................... 42,973,273 31,672,021 5,449,232 1,589,690 ----------- ----------- ---------- ---------- END OF PERIOD............................ $47,851,140 $42,973,273 $8,104,049 $5,449,232 ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------
P-47 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS (continued) - ------------------------------------------------------------------------------
SELIGMAN HENDERSON SELIGMAN HENDERSON SELIGMAN HENDERSON GLOBAL SMALLER GLOBAL TECHNOLOGY INTERNATIONAL COMPANIES PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ----------------------- ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- ----------- ---------- ---------- ----------- ---------- OPERATIONS: Net investment income (loss)......................... $ 8,675 $ 48,159 $ (7,920) $ 3,172 $ 68,185 $ 37,783 Net realized gain on investments........................... 632,728 813,641 266,846 513,781 512,579 665,686 Net realized gain (loss) from foreign currency transactions.......................... (198,762) (407,259) (7,239) (12,358) (63,984) (422,188) Net change in unrealized appreciation/depreciation of investments........................ 2,688,774 750,188 557,567 (84,833) 1,106,647 439,369 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............ 137,585 (536,914) 1,651 (40,471) 43,061 (72,394) ----------- ----------- ---------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS................ 3,269,000 667,815 810,905 379,291 1,666,488 648,256 ----------- ----------- ---------- ---------- ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.................... -- (26,233) -- (3,585) -- (17,648) Realized gain on investments............. -- (475,283) -- (503,962) -- (308,510) ----------- ----------- ---------- ---------- ----------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS.................... -- (501,516) -- (507,547) -- (326,158) ----------- ----------- ---------- ---------- ----------- ---------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares............................. 1,684,700 5,959,379 2,290,517 3,874,388 920,912 3,331,657 Investment of dividends.................. -- 26,233 -- 3,585 -- 17,648 Shares issued in payment of gain distributions................. -- 475,283 -- 503,962 -- 308,510 ----------- ----------- ---------- ---------- ----------- ---------- Total.................................... 1,684,700 6,460,895 2,290,517 4,381,935 920,912 3,657,815 ----------- ----------- ---------- ---------- ----------- ---------- Cost of shares redeemed.................. (2,016,633) (2,998,851) (1,442,351) (1,931,166) (1,023,599) (2,039,720) ----------- ----------- ---------- ---------- ----------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... (331,933) 3,462,044 848,166 2,450,769 (102,687) 1,618,095 ----------- ----------- ---------- ---------- ----------- ---------- INCREASE IN NET ASSETS................... 2,937,067 3,628,343 1,659,071 2,322,513 1,563,801 1,940,193 NET ASSETS: Beginning of Period...................... 20,504,590 16,876,247 3,686,228 1,363,715 9,182,465 7,242,272 ----------- ----------- ---------- ---------- ----------- ---------- END OF PERIOD............................ $23,441,657 $20,504,590 $5,345,299 $3,686,228 $10,746,266 $9,182,465 ----------- ----------- ---------- ---------- ----------- ---------- ----------- ----------- ---------- ---------- ----------- ----------
- -------------- * Commencement of operations. See Notes to Financial Statements. P-48 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS (continued) - ------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN SELIGMAN LARGE-CAP SMALL-CAP HIGH-YIELD BOND PORTFOLIO INCOME PORTFOLIO VALUE PORTFOLIO VALUE PORTFOLIO ------------------------- ------------------------- --------------- --------------- SIX MONTHS SIX MONTHS 5/1/98* 5/1/98* ENDED YEAR ENDED YEAR TO TO 6/30/98 ENDED 6/30/98 ENDED 6/30/98 6/30/98 (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) (unaudited) ----------- ----------- ----------- ----------- ---------- ---------- OPERATIONS: Net investment income (loss)......................... $ 1,243,013 $ 1,628,914 $ 277,219 $ 640,866 $ 314 $ (568) Net realized gain on investments........................... 204,628 186,257 366,405 731,075 4,732 6,752 Net realized gain (loss) from foreign currency transactions.......................... -- -- -- 5,037 -- -- Net change in unrealized appreciation/depreciation of investments........................ 58,938 571,005 137,960 419,679 (9,497) (53,449) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............ -- -- -- (10,907) -- -- ----------- ----------- ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS................ 1,506,579 2,386,176 781,584 1,785,750 (4,451) (47,265) ----------- ----------- ----------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.................... -- (1,614,526) -- (625,869) -- -- Realized gain on investments............. -- (193,743) -- (735,166) -- -- ----------- ----------- ----------- ----------- ---------- ---------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS.................... -- (1,808,269) -- (1,361,035) -- -- ----------- ----------- ----------- ----------- ---------- ---------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares............................. 8,742,515 16,215,266 1,064,036 2,166,510 994,352 917,604 Investment of dividends.................. -- 1,614,526 -- 625,869 -- -- Shares issued in payment of gain distributions................. -- 193,743 -- 735,166 -- -- ----------- ----------- ----------- ----------- ---------- ---------- Total.................................... 8,742,515 18,023,535 1,064,036 3,527,545 994,352 917,604 ----------- ----------- ----------- ----------- ---------- ---------- Cost of shares redeemed.................. (2,566,235) (6,510,022) (1,260,945) (3,833,770) (7,152) (14,499) ----------- ----------- ----------- ----------- ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... 6,176,280 11,513,513 (196,909) (306,225) 987,200 903,105 ----------- ----------- ----------- ----------- ---------- ---------- INCREASE IN NET ASSETS................... 7,682,859 12,091,420 584,675 118,490 982,749 855,840 NET ASSETS: Beginning of Period...................... 23,267,780 11,176,360 13,835,280 13,716,790 147,449 147,449 ----------- ----------- ----------- ----------- ---------- ---------- END OF PERIOD............................ $30,950,639 $23,267,780 $14,419,955 $13,835,280 $1,130,198 $1,003,289 ----------- ----------- ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- ---------- ----------
- -------------- * Commencement of operations. See Notes to Financial Statements. P-49 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------ 1. ORGANIZATION -- Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management investment company consisting of 14 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 Henderson Global Growth Opportunities Portfolio ("Global Growth Opportunities Portfolio"), Seligman Henderson Global Smaller Companies Portfolio ("Global Smaller Companies Portfolio"),Seligman Henderson Global Technology Portfolio ("Global Technology Portfolio"), Seligman Henderson International Portfolio ("International Portfolio"), Seligman High-Yield Bond Portfolio ("High-Yield Bond Portfolio"), Seligman Income Portfolio ("Income 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 currently provided as the investment medium for Canada Life of America Variable Annuity Account 2 ("CLVA-2"), which is offered by Canada Life Insurance Company of America ("CLICA"), Canada Life of New York Variable Annuity Account 2 ("CLNYVA-2") which is offered by Canada Life Insurance Company of New York ("CLNY"), and Canada Life of America Annuity Account 3 ("CLVA-3"), which is 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 and distributed by Seligman Financial Services, Inc. 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 and distributed by Seligman Financial Services, Inc. CLVA-3 Contracts may be purchased only by pension or profit-sharing employee benefit plans that satisfy the requirements for qualification set forth in Section 401 of the Internal Revenue Code of 1986, as amended. Shares of the Fund are also provided as the investment medium for other variable annuity accounts established by CLICA or its affiliates ("Canada Life Separate Accounts"). Shares of Bond, Capital,CashManagement,CommonStock, andIncomePortfolios are also provided as the investment medium for Seligman Mutual Benefit Plan (the "Mutual Benefit Plan"), a separate account of MBLLife Assurance Corporation ("MBL Life"). However, MBL Life has decided that it will not accept applications for new contracts nor will it accept additional purchase payments under existing contracts. In addition, requests for transfers of amounts to its Fixed Accumulation Account from the Mutual Benefit Plan will not be accepted. 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 andGovernment 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 prices or, in their 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. Other investments represent shares of certain other funds in the Seligman Group of Investment Companies purchased to offset the Cash Management Portfolio's liability for deferred directors' fees. Such investments 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 Opportunities Portfolio, Global Smaller Companies Portfolio, Global Technology Portfolio, and International Portfolio, (together, the "Seligman Henderson 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 distributed 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. P-50 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ 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. e. FORWARD CURRENCY CONTRACTS -- The Seligman Henderson 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. 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 agreement, 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 per share of the Portfolios. 3. PURCHASES AND SALES OF SECURITIES -- Purchases and sales of portfolio securities, excluding US Government obligations and short-term investments, for the six months ended June 30, 1998, were as follows: PORTFOLIO PURCHASES SALES --------- ----------- ----------- Bond $ 2,225,049 $ 2,292,727 Capital 11,551,847 13,366,140 Cash Management 3,899 -- Common Stock 19,407,600 17,551,298 Communications and Information 62,753,906 60,511,322 Frontier 20,759,450 19,056,043 Global Growth Opportunities 2,425,506 1,197,090 P-51 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) - ------------------------------------------------------------------------------ PORTFOLIO PURCHASES SALES --------- ----------- ---------- Global Smaller Companies $ 5,452,239 $6,353,557 Global Technology 2,305,099 1,528,062 International 3,505,880 3,445,347 High-Yield Bond 14,932,993 8,011,808 Income 5,449,652 5,485,651 Large-Cap Value 948,535 31,588 Small-Cap Value 858,639 32,883 For the six months ended June 30, 1998, purchases and sales of US Government obligations were $1,091,438 and $1,288,188, respectively, for the Bond Portfolio, and $1,369,953 and $520,469, respectively, for the Income Portfolio. Identified cost of investments sold is used for both financial statement and federal income tax purposes. At June 30, 1998, 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 $ 173,450 $ 136 Capital 4,203,271 419,233 Cash Management 27 100 Common Stock 12,563,358 980,143 Communications and Information 15,857,507 13,270,803 Frontier 7,471,192 4,200,720 Global Growth Opportunities 1,706,889 305,357 Global Smaller Companies 5,506,431 2,262,892 Global Technology 1,055,834 553,340 International 2,550,830 573,979 High-Yield Bond 1,075,991 181,101 Income 1,217,888 246,275 Large-Cap Value 26,923 36,420 Small-Cap Value 17,239 70,688 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. Prior to July 1, 1998, Seligman Henderson Co. (the "Subadviser"), an entity owned 50% each by the Manager and Henderson International, Inc., a subsidiary of Henderson plc, supervised and directed the global investments of the Seligman Henderson Portfolios. Compensation of all officers of the Fund, all directors of the Fund who are employees or consultants of the Manager, and all personnel of the Fund and the Manager is paid by the Manager or by Henderson plc. 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; and equal to 0.50%, on an annual basis, of High-Yield Bond Portfolio's daily net assets. The Manager's fee of the Seligman Henderson Portfolios is calculated daily and payable monthly, equal to an annual rate of 1.00% of the daily net assets of each Portfolio. The Manager's fee of 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. 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 and the Subadviser (through June 30, 1998) have agreed to reimburse expenses, other than the management fee, which exceed 0.40% per annum of the average daily net P-52 SELIGMAN PORTFOLIOS, INC. - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- assets of each of the Seligman Henderson Portfolios. The Manager, at its discretion, has also agreed to reimburse all expenses, other than the management fees, of the Large-Cap Value and Small-Cap Value Portfolios. For the six months ended June 30, 1998, the Manager waived fees and/or reimbursed expenses of $6,869, $438, $32,791, $7,678 and $765 for Bond, Capital, Cash Management, High-Yield Bond, and Income Portfolios, respectively. For the same period, the Manager waived all of its fees and the Subadviser waived a portion of its fee, for Global Growth Opportunities, Global Smaller Companies, Global Technology, and International Portfolios, totalling $10,749, $9,785, $10,187 and $21,417, respectively. For the period May 1, 1998, commencement of operations, to June 30, 1998, the Manager reimbursed expenses of $4,826 and $4,834, for Large-Cap Value and Small-Cap Value Portfolios, respectively. On March 30, 1998, AMP Limited, an Australian life insurance and financial services company, completed an acquisition of Henderson plc, which resulted in the termination of the Fund's subadvisory agreements. The Fund's Board of Directors approved interim subadvisory agreements pursuant to which the Subadviser continued to supervise and direct the global investments of the Seligman Henderson Portfolios, subject to shareholder approval. The Fund's directors also approved a proposed new subadvisory agreement pursuant to which Henderson Investment Management Limited ("HIML"), a wholly-owned subsidiary of Henderson plc would replace the Subadviser as subadviser to the Seligman Henderson Portfolios, and be responsible for furnishing investment advice, research, and assistance with respect to non-US investments. Under the new agreement, the Manager is responsible for the US investments of the Seligman Henderson Portfolios and has overall responsibility for management of the Portfolios. Both the interim subadvisory agreements and the new subadvisory agreement were approved by vote of the shareholders of the Seligman Henderson Portfolios on June 30, 1998. Seligman Financial Services, Inc. (the "Distributor"), agent for the distribution of the CLVA-2 Contracts and an affiliate of the Manager, received concessions of $122,407 from Canada Life Insurance Company of America and $6,932 from Canada Life Insurance Company of New York, after commissions paid to dealers. 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 June 30, 1998, are included in other liabilities. Deferred fees and related accrued earnings are not deductible for the federal income tax purposes until such amounts are paid. 5. LOSS CARRYFORWARD -- At December 31, 1997, the Bond Portfolio and the Cash Management Portfolio had net capital loss carryfowards for federal income tax purposes of $51,898 and $398, respectively, which are available for offset against future taxable net gains. These net capital loss carryforwards will expire in varying amounts through 2003. 6. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS -- At June 30,1998, the Fund had outstanding forward exchange currency contracts to purchase or sell foreign currencies as follows:
UNREALIZED FOREIGN IN EXCHANGE SETTLEMENT US $ APPRECIATION CONTRACT CURRENCY FOR US $ DATE VALUE (DEPRECIATION) - -------- -------- ----------- ---------- --------- -------------- GLOBAL GROWTH OPPORTUNITIES PORTFOLIO Purchases: German deutschemarks 149,327 82,433 7/1/98 82,592 $ 159 Japanese yen 4,772,100 34,393 7/2/98 34,293 (100) Japanese yen 19,841,500 140,000 8/20/98 143,602 3,602 ------- 3,661 ------- Sales: Japanese yen 34,777,860 260,000 8/20/98 251,703 8,297 ------- $11,958 ======= GLOBAL SMALLER COMPANIES PORTFOLIO Purchases: Japanese yen 39,683,000 280,000 8/20/98 287,204 $ 7,204 ------- Sales: Singapore dollar 21,972 12,819 7/1/98 13,027 (208) Japanese yen 76,243,770 570,000 8/20/98 551,811 18,189 ------- 17,981 ------- $25,185 =======
P-53 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) - ------------------------------------------------------------------------------
UNREALIZED FOREIGN IN EXCHANGE SETTLEMENT US $ APPRECIATION CONTRACT CURRENCY FOR US $ DATE VALUE (DEPRECIATION) - -------- -------- ----------- ---------- --------- -------------- INTERNATIONAL PORTFOLIO Purchases: Portuguese escudos 8,600,000 46,532 7/2/98 46,464 $ (68) Japanese yen 28,345,000 200,000 8/20/98 205,146 5,146 ------- 5,078 ------- Sales: Japanese yen 58,854,840 440,000 8/20/98 425,960 14,040 ------- $19,118 =======
7. CAPITAL STOCK TRANSACTIONS -- At June 30, 1998, there were 20,000,000 shares of Capital Stock authorized for each of Global Growth Opportunities, Global Technology, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000 shares for each of Bond, Capital, International, and Income Portfolios; and 100,000,000 shares for each of Cash Management, Common Stock, Communications and Information, Frontier, Global Smaller Companies, and High-Yield Bond Portfolios, all at a par value of $0.001 per share. Transactions in shares of Capital Stock were as follows:
BOND CAPITAL CASH MANAGEMENT PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ------------------------ ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- -------- ----------- -------- ----------- -------- Sale of shares...................... 81,769 292,591 254,845 421,000 12,176,616 25,875,970 Shares issued in payment of dividends..................... -- 35,242 -- 1,659 251,694 512,275 Shares issued in payment of gain distributions............ -- -- -- 74,699 -- -- -------- -------- -------- -------- ----------- ----------- Total............................... 81,769 327,833 254,845 497,358 12,428,310 26,388,245 -------- -------- -------- -------- ----------- ----------- Shares redeemed..................... (164,259) (128,619) (241,870) (264,028) (11,850,638) (27,507,851) -------- -------- -------- -------- ----------- ----------- Increase (decrease) in shares....... (82,490) 199,214 12,975 233,330 577,672 (1,119,606) ======== ======== ======== ======== =========== ===========
COMMUNICATIONS COMMON STOCK AND INFORMATION FRONTIER PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ------------------------ ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- -------- ----------- -------- ----------- -------- Sale of shares...................... 263,995 706,222 6,104,241 2,968,727 6,535,251 1,172,506 Shares issued in payment of dividends..................... -- 51,724 -- -- -- -- Shares issued in payment of gain distributions............ -- 436,215 -- 1,783,179 -- 255,874 -------- --------- ---------- ---------- ----------- ----------- Total............................... 263,995 1,194,161 6,104,241 4,751,906 6,535,251 1,428,380 -------- --------- ---------- ---------- ----------- ----------- Shares redeemed..................... (208,644) (412,385) (5,748,098) (2,185,329) (6,461,325) (819,268) -------- --------- ---------- ---------- ----------- ----------- Increase in shares.................. 55,351 781,776 356,143 2,566,577 73,926 609,112 ======== ========= ========== ========== =========== ===========
GLOBAL GROWTH GLOBAL SMALLER GLOBAL OPPORTUNITIES COMPANIES TECHNOLOGY PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ------------------------ ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- -------- ----------- -------- ----------- -------- Sale of shares...................... 165,864 409,426 114,618 447,087 184,806 329,216 Shares issued in payment of dividends..................... -- -- -- 2,062 -- 347 Shares issued in payment of gain distributions............ -- 5,564 -- 37,365 -- 48,881 -------- -------- -------- -------- --------- --------- Total............................... 165,864 414,990 114,618 486,514 184,806 378,444 -------- -------- -------- -------- --------- --------- Shares redeemed..................... (44,280) (81,077) (140,058) (217,853) (117,841) (162,342) -------- -------- -------- -------- --------- --------- Increase (decrease) in shares....... 121,584 333,913 (25,440) 268,661 66,965 216,102 ======== ======== ======== ======== ========= =========
P-54 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
INTERNATIONAL HIGH-YIELD BOND INCOME PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ------------------------ ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 ----------- -------- ----------- -------- ----------- -------- Sale of shares...................... 60,430 239,540 709,078 1,357,028 94,828 192,283 Shares issued in payment of dividends..................... -- 1,313 -- 136,132 -- 58,547 Shares issued in payment of gain distributions............ -- 22,955 -- 16,336 -- 68,771 -------- -------- -------- --------- --------- --------- Total............................... 60,430 263,808 709,078 1,509,496 94,828 319,601 -------- -------- -------- --------- --------- --------- Shares redeemed..................... (66,747) (144,243) (206,078) (547,725) (112,528) (342,394) -------- -------- -------- --------- --------- --------- Increase (decrease) in shares....... (6,317) 119,565 503,000 961,771 (17,700) (22,793) ======== ======== ======== ========= ========= =========
LARGE-CAP SMALL-CAP VALUE VALUE PORTFOLIO PORTFOLIO ---------- ---------- 5/1/98* 5/1/98* TO TO 6/30/98 6/30/98 (unaudited) (unaudited) ----------- ----------- Sale of shares...................... 99,895 96,465 Shares redeemed..................... (726) (1,597) ------ ------ Increase in shares.................. 99,169 94,868 ====== ====== - ------------------- * Commencement of operations.
8. COMMITTED LINE OF CREDIT --Effective July 1, 1998, Communications and Information, Frontier, Global Growth Opportunities, Global Smaller Companies, Global Technology, International, and High-Yield Bond Portfolios terminated their $12 million committed line of credit facility and all of the Portfolios except the Cash Management Portfolio, entered into a joint $800 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 Henderson 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% on an overnight basis. 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 one year from the date of the agreement but is renewable with the consent of the participating banks. To date, none of the Portfolios have borrowed from the credit facility. 9. SUBSEQUENT EVENT -- On July 15, 1998, MBL Life entered into an agreement with Anchor National Life Insurance Company ("Anchor National"), a subsidiary of SunAmerica, Inc., pursuant to which Anchor National will purchase the individual life and individual and group annuity businesses of MBL Life (the "Acquisition"). It is anticipated that the Acquisition will occur no later than December 31, 1998; however, it is subject to certain judicial and regulatory approvals. MBL Life has indicated that, as part of the approval process, it intends to seek a court order to terminate the Mutual Benefit Plan. This termination, which under the proposed court order would occur six months after the acquisition, will cause the Mutual Benefit Plan assets to be withdrawn from the Fund. At June 30, 1998, the Mutual Benefit Plan assets held in the Fund were as follows: Bond Portfolio $ 1,608,844 Capital Portfolio 5,105,156 Cash Management Portfolio 856,332 Common Stock Portfolio 14,359,513 Income Portfolio 3,801,428 Because the Manager currently limits the expenses incurred by these portfolios, the withdrawal of Mutual Benefit Plan assets is not expected to have a significant impact on the ratio of expenses to average net assets for any of these portfolios. P-55 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------ The Fund's financial highlights are presented below. "Per share operating performance" data is designed to allow investors to trace the operating performance, on a per share basis, from a Portfolio's beginning net asset value to the ending net asset value, so that investors can understand what effect the individual items have on their investment, assuming it was held throughout the period. Generally, the per share amounts are derived by converting the actual dollar amounts incurred for each item, as disclosed in the financial statements, to their equivalent per share amount. "Total return based on net asset value" measures each Portfolio's performance assuming that investors purchased shares of a Portfolio at net asset value at the beginning of the period, invested dividends and capital gains paid at net asset value, and then sold their shares at the net asset value on the last day of the period. The total returns exclude the effect of all administration fees and asset based sales charges associated with variable annuity contracts. The total returns for periods of less than one year are not annualized.
BOND PORTFOLIO --------------------------------------------------------------------------- SIX MONTHS YEAR ENDED DECEMBER 31, ENDED 6/30/98 ----------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993 ---------- ------- ------- ------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD.............. $10.240 $ 9.890 $10.440 $ 9.270 $10.110 $10.660 ------- ------- ------- ------- ------- ------- Net investment income............................. 0.294 0.538 0.565 0.605 0.499 0.713 Net realized and unrealized gain (loss) on investments.................................. 0.096 0.350 (0.552) 1.171 (0.841) 0.142 ------- ------- ------- ------- ------- ------- INCREASE (DECREASE) FROM INVESTMENT OPERATIONS...................................... 0.390 0.888 0.013 1.776 (0.342) 0.855 Dividends paid.................................... -- (0.538) (0.563) (0.606) (0.498) (0.711) Distributions from net realized gain.............. -- -- -- -- -- (0.694) ------- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE........ 0.390 0.350 (0.550) 1.170 (0.840) (0.550) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD.................... $10.630 $10.240 $ 9.890 $10.440 $ 9.270 $10.110 ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 3.81% 8.98% 0.09% 19.18% (3.39)% 7.98% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets.................... 0.60%+ 0.60% 0.60% 0.60% 0.60% 0.74% Net investment income to average net assets....... 5.73%+ 6.22% 5.97% 6.22% 5.12% 5.41% Portfolio turnover................................ 52.17% 170.12% 199.74% 114.42% 237.23% 33.21% NET ASSETS, END OF PERIOD (000s omitted).......... $6,631 $7,232 $5,015 $4,497 $3,606 $3,775 Without management fee waiver and expense reimbursement:++ Net investment income per share................ $0.284 $0.515 $ 0.545 $0.571 $0.430 $0.675 Ratios: Expenses to average net assets................. 0.81%+ 0.83% 0.79% 0.99% 1.31% 1.07% Net investment income to average net assets.... 5.52%+ 5.99% 5.78% 5.83% 4.41% 5.08% - -------------- +Annualized ++The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-56 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
CAPITAL PORTFOLIO --------------------------------------------------------------------------- SIX MONTHS YEAR ENDED DECEMBER 31, ENDED 6/30/98 ----------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993 ---------- ------- ------- ------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD.............. $18.100 $16.010 $14.910 $12.700 $14.950 $16.980 ------- ------- ------- ------- ------- ------- Net investment income............................. 0.015 0.029 0.043 0.048 0.015 0.021 Net realized and unrealized gain (loss) on investments.................................. 2.505 3.350 2.121 3.385 (0.699) 1.928 ------- ------- ------- ------- ------- ------- INCREASE (DECREASE) FROM INVESTMENT OPERATIONS...................................... 2.520 3.379 2.164 3.433 (0.684) 1.949 Dividends paid.................................... -- (0.028) (0.042) (0.047) (0.018) (0.021) Distributions from net realized gain.............. -- (1.261) (1.022) (1.176) (1.548) (3.958) ------- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE........ 2.520 2.090 1.100 2.210 (2.250) (2.030) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD.................... $20.620 $18.100 $16.010 $14.910 $12.700 $14.950 ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE:............ 13.92% 21.31% 14.51% 27.17% (4.59)% 11.65% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets.................... 0.60%+ 0.60% 0.59% 0.60% 0.60% 0.71% Net investment income to average net assets....... 0.15%+ 0.16% 0.29% 0.32% 0.10% 0.09% Portfolio turnover................................ 56.06% 93.97% 88.78% 122.20% 67.39% 65.30% NET ASSETS, END OF PERIOD (000s omitted).......... $23,513 $20,400 $14,313 $9,294 $5,942 $5,886 Without management fee waiver:++ Net investment income (loss) per share......... $0.015 $0.026 $0.035 $(0.036) $(0.003) Ratios: Expenses to average net assets................. 0.60%+ 0.62% 0.71% 0.96% 0.83% Net investment income (loss) to average net assets................................... 0.15%+ 0.14% 0.21% (0.26)% (0.03)%
CASH MANAGEMENT PORTFOLIO --------------------------------------------------------------------------- SIX MONTHS YEAR ENDED DECEMBER 31, ENDED 6/30/98 ----------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993 ---------- ------- ------- ------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Net investment income............................. 0.026 0.054 0.053 0.055 0.040 0.030 Dividends paid.................................... (0.026) (0.054) (0.053) (0.055) (0.040) (0.030) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD ................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 2.68% 5.52% 5.43% 5.60% 4.03% 3.00% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets.................... -- -- -- -- -- -- Net investment income to average net assets....... 5.34% 5.39% 5.30% 5.48% 3.98% 2.96% NET ASSETS, END OF PERIOD (000s omitted).......... $9,213 $8,635 $9,755 $7,800 $3,230 $3,102 Without management fee waiver and expense reimbursement:++ Net investment income per share................ $0.023 $0.046 $0.047 $0.046 $0.025 $0.019 Ratios: Expenses to average net assets................. 0.70%+ 0.79% 0.63% 0.87% 1.48% 1.07% Net investment income to average net assets.... 4.64%+ 4.60% 4.67% 4.61% 2.50% 1.89% - ---------------- +Annualized ++The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-57 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) - ------------------------------------------------------------------------------
COMMON STOCK PORTFOLIO --------------------------------------------------------------------------- SIX MONTHS YEAR ENDED DECEMBER 31, ENDED 6/30/98 ----------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993 ---------- ------- ------- ------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD.............. $16.280 $15.920 $15.440 $13.780 $14.980 $15.600 ------- ------- ------- ------- ------- ------- Net investment income............................. 0.134 0.328 0.334 0.349 0.365 0.392 Net realized and unrealized gain (loss) on investments.................................. 2.006 3.013 2.789 3.400 (0.356) 1.479 ------- ------- ------- ------- ------- ------- INCREASE FROM INVESTMENT OPERATIONS............... 2.140 3.341 3.123 3.749 0.009 1.871 Dividends paid.................................... -- (0.316) (0.336) (0.345) (0.385) (0.394) Distributions from net realized gain.............. -- (2.665) (2.307) (1.744) (0.824) (2.097) ------- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE........ 2.140 0.360 0.480 1.660 (1.200) (0.620) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD.................... $18.420 $16.280 $15.920 $15.440 $13.780 $14.980 ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 13.14% 21.31% 20.08% 27.28% 0.04% 11.94% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets.................... 0.51%+ 0.53% 0.53% 0.54% 0.60% 0.55% Net investment income to average net assets....... 1.57%+ 1.92% 1.99% 2.42% 2.45% 2.10% Portfolio turnover................................ 33.36% 80.13% 50.33% 55.48% 15.29% 10.70% NET ASSETS, END OF PERIOD (000s omitted).......... $58,442 $50,737 $37,168 $28,836 $20,168 $21,861 Without management fee waiver:++ Net investment income per share................ $0.361 Ratios: Expenses to average net assets................. 0.62% Net investment income to average net assets.... 2.43%
COMMUNICATIONS AND INFORMATION PORTFOLIO --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 10/11/94* 6/30/98 ------------------------------------- TO PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94 ----------- ------- ------- ------- -------- NET ASSET VALUE, BEGINNING OF PERIOD.............. $13.090 $14.690 $13.500 $10.440 $10.000 ------- ------- ------- ------- ------- Net investment loss............................... (0.036) -- -- -- (0.016) Net realized and unrealized gain on investments.................................. 1.756 3.049 1.190 4.015 0.456 ------- ------- ------- ------- ------- INCREASE FROM INVESTMENT OPERATIONS............... 1.720 3.049 1.190 4.015 0.440 Dividends paid.................................... -- -- -- -- -- Distributions from net realized gain.............. -- (4.649) -- (0.955) -- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE........ 1.720 (1.600) 1.190 3.060 0.440 ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD.................... $14.810 $13.090 $14.690 $13.500 $10.440 ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 13.14% 22.22% 8.81% 38.55% 4.40% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets.................... 0.87%+ 0.87% 0.87% 0.95% 0.95%+ Net investment loss to average net assets......... 0.50)%+ (0.49)% (0.32)% (0.89)% (0.95)%+ Portfolio turnover................................ 62.86% 277.14% 167.20% 96.62% -- NET ASSETS, END OF PERIOD (000s omitted).......... $104,421 $87,633 $60,645 $38,442 $495 Without management fee waiver and expense reimbursement:++ Net investment loss per share.................. $(0.436) Ratios: Expenses to average net assets................. 13.96%+ Net investment income to average net assets.... 13.96%+ - --------------- * Commencement of investment operations. + Annualized. ++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-58 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
GLOBAL GROWTH FRONTIER PORTFOLIO OPPORTUNITIES PORTFOLIO -------------------------------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 10/11/94* ENDED YEAR 5/1/96** PER SHARE OPERATING 6/30/98 ----------------------------- TO 6/30/98 ENDED TO PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94 (unaudited) 12/31/97 12/31/96 ----------- ------- ------- ------- -------- ----------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD......................... $15.780 $14.980 $13.560 $10.580 $10.000 $11.030 $ 9.910 $10.000 ------- ------- ------- ------- ------- ------- ------- ------- Net investment income (loss)........ (0.037) -- 0.001 (0.001) (0.012) 0.018 0.006 0.008 Net realized and unrealized gain on investments................... 1.367 2.386 3.220 3.512 0.592 2.133 1.799 0.018 Net realized and unrealized loss on foreign currency transactions. -- -- -- -- -- (0.021) (0.561) (0.104) ------- ------- ------- ------- ------- ------- ------- ------- INCREASE (DECREASE) FROM INVESTMENT OPERATIONS............ 1.330 2.386 3.221 3.511 0.580 2.130 1.244 (0.078) Dividends paid...................... -- -- -- -- -- -- -- (0.012) Distributions from net realized gain -- (1.586) (1.801) (0.531) -- -- (0.124) -- ------- ------- ------- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE.................. 1.330 0.800 1.420 2.980 0.580 2.130 1.120 (0.090) ------- ------- ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD...... $17.110 $15.780 $14.980 $13.560 $10.580 $13.160 $11.030 $ 9.910 ======= ======= ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 8.43% 16.33% 23.93% 33.28% 5.80% 19.31% 12.57% (0.78)% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets...... 0.91%+ 0.89% 0.92% 0.95% 0.95%+ 1.40%+ 1.40% 1.40%+ Net investment income (loss) to average net assets............... 0.47)%+ (0.49)% (0.37)% (0.55)% (0.70)%+ 0.30%+ 0.01% 0.37%+ Portfolio turnover.................. 42.56% 101.68% 119.74% 106.48% -- 18.45% 77.85% 12.99% NET ASSETS, END OF PERIOD (000s omitted)................... $47,851 $42,973 $31,672 $12,476 $169 $8,104 $5,449 $1,590 Without management fee waiver and expense reimbursement:++ Net investment loss per share.... $(0.019) $(1.319) -- $(0.072) $(0.255) Ratios: Expenses to average net assets... 1.37% 40.47%+ 1.71%+ 2.11% 6.04%+ Net investment loss to average net assets............. (0.97)% (40.22)%+ (0.01)%+ (0.70)% (4.27)%+ - ---------------- * Commencement of investment operations. ** Commencement of operations. + Annualized. ++ The Manager and/or Subadviser, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-59 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) - ------------------------------------------------------------------------------
GLOBAL SMALLER COMPANIES PORTFOLIO GLOBAL TECHNOLOGY PORTFOLIO -------------------------------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 10/11/94* ENDED YEAR 5/1/96** PER SHARE OPERATING 6/30/98 ----------------------------- TO 6/30/98 ENDED TO PERFORMANCE: (unaudited) 1997 1996 1995 12/31/94 (unaudited) 12/31/97 12/31/96 ----------- ------- ------- ------- -------- ----------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD......................... $12.980 $12.870 $11.670 $10.310 $10.000 $10.590 $10.320 $10.000 ------- ------- ------- ------- ------- ------- ------- ------- Net investment income (loss)........ 0.006 0.016 0.022 0.051 0.058 (0.019) 0.012 (0.004) Net realized and unrealized gain on investments................... 2.222 1.166 2.305 2.037 0.266 2.318 2.151 0.305 Net realized and unrealized gain (loss) on foreign currency transactions..................... (0.128) (0.747) (0.158) (0.301) 0.029 (0.019) (0.194) 0.099 ------- ------- ------- ------- ------- ------- ------- ------- INCREASE FROM INVESTMENT OPERATIONS............ 2.100 0.435 2.169 1.787 0.353 2.280 1.969 0.400 Dividends paid...................... -- (0.017) (0.018) (0.052) (0.043) -- (0.012) -- Distributions from net realized gain -- (0.308) (0.951) (0.375) -- -- (1.687) (0.080) ------- ------- ------- ------- ------- ------- ------- ------- NET INCREASE IN NET ASSET VALUE.................. 2.100 0.110 1.200 1.360 0.310 2.280 0.270 0.320 ------- ------- ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD...... $15.080 $12.980 $12.870 $11.670 $10.310 $12.870 $10.590 $10.320 ======= ======= ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 16.18% 3.43% 18.66% 17.38% 3.53% 21.53% 19.53% 4.01% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets...... 1.40%+ 1.40% 1.40% 1.39% 1.20%+ 1.40%+ 1.40% 1.40%+ Net investment income (loss) to average net assets............... 0.08%+ 0.24% 0.23% 0.64% 3.14%+ (0.34)%+ 0.12% 0.60%+ Portfolio turnover.................. 26.43% 64.81% 62.31% 55.65% -- 36.94% 167.36% 45.04% NET ASSETS, END OF PERIOD (000s omitted)................... $23,442 $20,505 $16,876 $4,837 $132 $5,345 $3,686 $1,364 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share...................... $(0.001) $0.006 $(0.044) $(0.051) $(1.225) $(0.046) $(0.070) $(0.202) Ratios: Expenses to average net assets... 1.49%+ 1.56% 1.90% 3.84% 37.25%+ 1.84%+ 2.10% 4.71%+ Net investment income (loss) to average net assets............. (0.01)%+ 0.08% (0.27)% (1.81)% (32.91)%+ (0.78)%+ (0.58)% (2.71)%+ - -------------- * Commencement of investment operations. ** Commencement of operations. + Annualized. ++ The Manager and/or Subadviser, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-60 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO HIGH-YIELD BOND PORTFOLIO ---------------------------------------------------- --------------------------------------- SIX MONTHS SIX MONTHS YEAR ENDED PER SHARE OPERATING ENDED YEAR ENDED DECEMBER 31, 5/3/93* ENDED DECEMBER 31, 5/1/95* 6/30/98 -------------------------------- TO 6/30/98 --------------- TO PERFORMANCE: (unaudited) 1997 1996 1995 1994 12/31/93 (unaudited) 1997 1996 12/31/95 --------- ------ ------ ------ ------ ------- ---------- ------ ------ -------- NET ASSET VALUE, BEGINNING OF PERIOD........................ $13.540 $12.960 $12.390 $11.340 $11.370 $10.000 $11.870 $11.190 $10.500 $10.000 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Net investment income............... 0.101 0.026 0.074 0.154 0.131 0.021 0.556 0.908 0.768 0.218 Net realized and unrealized gain (loss) on investments............ 2.444 2.110 1.124 0.896 (0.306) 1.518 0.134 0.780 0.766 0.519 Net realized and unrealized gain (loss) on foreign currency transactions..................... (0.095) (1.057) (0.323) 0.236 0.32 (0.099) -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- INCREASE FROM INVESTMENT OPERATIONS....................... 2.450 1.079 0.875 1.286 0.150 1.440 0.690 1.688 1.534 0.737 Dividends paid...................... -- (0.027) (0.068) (0.151) (0.064) (0.053) -- (0.900) (0.766) (0.219) Distributions from net realized gain -- (0.472) (0.237) (0.085) (0.116) (0.017) -- (0.108) (0.078) (0.018) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE...................... 2.450 0.580 0.570 1.050 (0.030) 1.370 0.690 0.680 0.690 0.500 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD...... $15.990 $13.540 $12.960 $12.390 $11.340 $11.370 $12.560 $11.870 $11.190 $10.500 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE: 18.09% 8.35% 7.08% 11.34% 1.32% 14.40% 5.81% 15.09% 14.62% 7.37% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets...... 1.40%+ 1.40% 1.40% 1.35% 1.20% 1.20%+ 0.70%+ 0.70% 0.70% 0.70%+ Net investment income to average net assets............... 1.35%+ 0.43% 0.70% 1.01% 1.17% 1.30%+ 9.08%+ 9.61% 9.77% 7.46%+ Portfolio turnover.................. 35.25% 89.43% 48.53% 41.40% 47.34% 2.82% 30.34% 74.54% 117.01% 67.55% NET ASSETS, END OF PERIOD (000s omitted)................... $10,746 $9,182 $7,242 $4,183 $1,776 $648 $30,951 $23,268 $11,176 $3,009 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share........................ $0.070 $(0.069) $(0.042) $0.001 $(0.419) $(1.004) $0.555 $0.897 $0.747 $0.117 Ratios: Expenses to average net assets... 1.82%+ 2.07% 2.30% 3.40% 6.12% 17.94%+ 0.76%+ 0.79% 0.88% 4.38%+ Net investment income (loss) average net assets............... 0.93%+ (0.24)% (0.20)% (1.04)% (3.75)% (15.44)%+ 9.02%+ 9.52% 9.59% 3.78%+ - --------------- * Commencement of investment operations. + Annualized. ++ The Manager and/or Subadviser, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements.
P-61 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) - ------------------------------------------------------------------------------
INCOME PORTFOLIO --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 6/30/98 ---------------------------------------------------- PER SHARE OPERATING PERFORMANCE: (unaudited) 1997 1996 1995 1994 1993 ---------- -------- ------- ------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD ................... $10.800 $10.520 $10.560 $9.970 $11.380 $11.390 ------- ------ ------- ------ ------- ------- Net investment income .................................. 0.216 0.556 0.579 0.604 0.689 0.828 Net realized and unrealized gain (loss) on investments.. 0.394 0.907 0.126 1.187 (1.369) 0.576 ------- ------ ------- ------ ------- ------- INCREASE (DECREASE) FROM INVESTMENT OPERATIONS ......... 0.610 1.463 0.705 1.791 (0.680) 1.404 Dividends paid ......................................... -- (0.544) (0.579) (0.604) (0.730) (0.828) Distributions from net realized gain ................... -- (0.639) (0.166) (0.597) -- (0.586) ------- ------ ------- ------ ------- ------- NET INCREASE (DECREASE) IN NET ASSET VALUE ............. 0.610 0.280 (0.040) 0.590 (1.410) (0.010) ------- ------ ------- ------ ------- ------- NET ASSET VALUE, END OF PERIOD ......................... $11.410 $10.800 $10.520 $10.560 $9.970 $11.380 ======= ======= ======= ======= ====== ======= TOTAL RETURN BASED ON NET ASSET VALUE:.................. 5.65% 14.02% 6.66% 17.98% (5.96)% 12.37% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets ......................... 0.60%+ 0.60% 0.59% 0.60% 0.60% 0.64% Net investment income to average net assets ............ 3.91%+ 4.71% 5.37% 5.55% 6.34% 6.40% Portfolio turnover ..................................... 44.96% 96.99% 19.59% 51.22% 29.76% 38.38% NET ASSETS, END OF PERIOD (000s omitted) ............... $14,420 $13,835 $13,717 $12,619 $10,050 $11,220 Without management fee waiver:++ Net investment income per share ..................... $0.216 $0.553 $0.602 $0.670 $0.826 Ratios: Expenses to average net assets ...................... 0.61%+ 0.63% 0.62% 0.77% 0.65% Net investment income to average net assets ......... 3.90%+ 4.68% 5.53% 6.17% 6.39% LARGE-CAP SMALL-CAP VALUE VALUE PORTFOLIO PORTFOLIO 5/1/98* 5/1/98* TO TO 6/30/98 6/30/98 PER SHARE OPERATING PERFORMANCE: (unaudited) (unaudited) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ............. $10.000 $10.000 ------- ------- Net investment income (loss)...................... 0.004 (0.007) Net realized and unrealized loss on investments .. (0.084) (0.843) ------- ------- DECREASE FROM INVESTMENT OPERATIONS .............. (0.080) (0.850) Dividends paid ................................... -- -- Distributions from net realized gain ............. -- -- ------- ------- NET DECREASE IN NET ASSET VALUE .................. (0.080) (0.850) ------- ------- NET ASSET VALUE, END OF PERIOD ................... $9.920 $9.150 ======= ======= TOTAL RETURN BASED ON NET ASSET VALUE:............ (0.080)% (8.50)% RATIOS/SUPPLEMENTAL DATA: Expenses to average net assets ................... 0.80%+ 1.00%+ Net investment income (loss) to average net assets 0.31%+ (0.60)%+ Portfolio turnover ............................... 4.23% 5.13% NET ASSETS, END OF PERIOD (000s omitted) ......... $1,130 $1,003 Without expense reimbursement:++ Net investment loss per share ................. $(0.051) $(0.062) Ratios: ....................................... Expenses to average net assets ................ 5.52%+ 6.14%+ Net investment loss to average net assets...... (4.41)%+ (5.74)%+ - ---------------- * Commencement of operations. + Annualized. ++ The Manager, at its discretion, reimbursed expenses or waived management fees for certain periods presented. See Notes to Financial Statements.
P-62 SELIGMAN PORTFOLIOS, INC. - ------------------------------------------------------------------------------ PROXY RESULTS - ------------------------------------------------------------------------------ Shareholders of the Seligman Henderson Portfolios of Seligman Portfolios, Inc. voted on the following proposals at a Special Meeting of Shareholders held on June 30, 1998, in New York, New York. All proposals were approved. The description of each proposal and number of shares voted are as follows:
FOR AGAINST ABSTAIN ---------- ---------- ---------- Approval of an interim subadvisory agreement between J. & W. Seligman & Co. Incorporated and Seligman Henderson Co.: Seligman Henderson Global Growth Opportunities Portfolio 525,499 14,528 23,485 Seligman Henderson Global Smaller Companies Portfolio 1,498,340 11,945 47,863 Seligman Henderson Global Technology Portfolio 357,448 1,942 26,231 Seligman Henderson International Portfolio 666,380 926 10,510 Approval of a new subadvisory agreement between J. & W. Seligman & Co. Incorporated and Henderson Investment Management Limited, effective July 1, 1998: Seligman Henderson Global Growth Opportunities Portfolio 502,196 16,497 44,819 Seligman Henderson Global Smaller Companies Portfolio 1,450,810 14,829 92,509 Seligman Henderson Global Technology Portfolio 346,676 73 38,872 Seligman Henderson International Portfolio 657,730 2,582 17,504
P-63 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 JOHN E. MEROW 2, 4 Retired Chairman and Senior Partner, Sullivan & Cromwell, Law Firm Director, Commonwealth Industries, Inc. Trustee, The New York and Presbyterian Hospital BETSY S. MICHEL 2, 4 Trustee, The Geraldine R. Dodge Foundation Chairman of the Board of Trustees, St. George's School WILLIAM C. MORRIS 1 Chairman Chairman of the Board, J. & W. Seligman & Co. Incorporated Chairman, Carbo Ceramics Inc. Director, Kerr-McGee Corporation JAMES C. PITNEY 3, 4 Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm JAMES Q. RIORDAN 3, 4 Director, The Brooklyn Union Gas Company 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 Emeritus FRED E. BROWN Director and Consultant, J. & W. Seligman & Co. Incorporated - ----------------- Member: 1 Executive Committee 2 Audit Committee 3 Director Nominating Committee 4 Board Operations Committee - ------------------------------------------------------------------------------ EXECUTIVE OFFICERS - ------------------------------------------------------------------------------ WILLIAM C. MORRIS Chairman BRIANT.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 Financial Services, Inc. 100 Park Avenue New York, New York 10017 CUSTODIANS Investors Fiduciary Trust Company Morgan Stanley Trust Company GENERAL COUNSEL Sullivan & Cromwell INDEPENDENT AUDITORS Ernst & Young LLP P-64 -----END PRIVACY-ENHANCED MESSAGE-----