-----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, GtijKEzb9UxNqmbEH8g6rNjmWxtpyAuUNrPqZeC/IFAMjrcghy2mcG4XC8Pro/TD R7kslOvaBG1kI1G7yNE4Jg== 0000817841-96-000003.txt : 19960311 0000817841-96-000003.hdr.sgml : 19960311 ACCESSION NUMBER: 0000817841-96-000003 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960308 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: 1940 Act SEC FILE NUMBER: 811-05221 FILM NUMBER: 96532837 BUSINESS ADDRESS: STREET 1: 130 LIBERTY ST CITY: NEW YORK STATE: NY ZIP: 10006 BUSINESS PHONE: 2124880200 MAIL ADDRESS: STREET 1: 103 LIBERTY STREET CITY: NEW YORK STATE: NY ZIP: 10006 FORMER COMPANY: FORMER CONFORMED NAME: SELIGMAN MUTUAL BENEFIT PORTFOLIOS INC DATE OF NAME CHANGE: 19920703 N-30D 1 ANNUAL REPORT - -------------------------------------------------------------------------------- A N N U A L R E P O R T - -------------------------------------------------------------------------------- ------------------------------------ SELIGMAN -------- PORTFOLIOS, ----------- INC. ---- [LOGO] December 31, 1995 ------------------------------------ ============================= SELIGMAN PORTFOLIOS, INC. ----------------------------- ----------------------------- ----------------------------- February 2, 1996 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios, Inc., is pleased to provide the enclosed audited financial statements and accompanying information for Seligman Portfolios, Inc., the underlying investment vehicle for your policy, for the 12 months ended December 31, 1995. It can be unanimously concluded that 1995 was a banner year for the US financial markets. After a pessimistic start, many factors including low inflation, falling interest rates, and strong corporate earnings paved the way for a memorable year. Overall, the market indices tell the best story. The Standard & Poor's 500 Composite Stock Price Index, the Ibbotson Long-Term Government Bond Index, and the Wilshire 5000 were up 30% or more for the year. The leading market indices have only twice, since the end of World War II, risen more than 1995's strong advance. In spite of the historic advances, the financial markets did teeter towards the end of the year due to the Federal budget stalemate between the White House and Congress. Nevertheless, the deadlock in Washington did not deter the Federal Reserve Board from lowering short-term interest rates on December 19 -- a move that quickly rejuvenated the financial markets. Looking forward, the slowing economy, the budget negotiations, and the 1996 Presidential election are a few of the factors that may create somewhat more volatile markets in the year ahead. We remain optimistic about each portfolio's performance and will continue to search for, and invest in, those companies that can sustain earnings growth in a challenging and competitive global business environment -- a strategy we believe is key to investment performance. We thank you for your continued confidence in Seligman Portfolios, Inc., and look forward to serving your investment needs in 1996 and the years ahead. Respectfully, /s/ WILLIAM MORRIS William C. Morris Chairman J. & W. Seligman & Co. Incorporated Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Largest Portfolio Changes* (unaudited) - -------------------------------------------------------------------------------- During the six months ended December 31, 1995
Shares or Shares or Additions Principal Amount Reductions Principal Amount --------------------- --------------------- --------------------- --------------------- Holdings Holdings Increase 12/31/95 Decrease 12/31/95 -------- -------- -------- -------- SELIGMAN CAPITAL PORTFOLIO Common Stocks Common Stocks Comshare ....................... 7,000 shs. 7,000 shs. Borders Group .................. 10,000 shs. -- Donaldson, Lufkin & Jenrette ... 6,000 6,000 Bristol-Myers Squibb ........... 2,000 -- Guidant ........................ 5,000 5,000 Ceridian ....................... 5,400 -- Hart Brewing ................... 10,650 10,650 Chrysler ....................... 2,100 -- Mid Atlantic Medical Services .. 7,400 7,400 DSC Communications ............. 3,400 -- Minerals Technologies .......... 5,000 5,000 EMC ............................ 6,300 -- Olin ........................... 2,300 2,300 HFS Group ...................... 2,000 2,400 shs. Oxford Health Plans ............ 2,500 2,500 Motorola ....................... 2,400 -- Progressive (Ohio) ............. 3,700 3,700 Phelps Dodge ................... 2,100 -- WorldCom ....................... 5,100 5,100 USF&G .......................... 7,900 -- - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN COMMON STOCK PORTFOLIO Common Stocks Common Stocks Applied Materials .............. 3,400 3,400 Ahmanson (H.F.) ................ 8,300 -- Disney, Walt ................... 2,400 2,400 American International Group ... 2,900 4,000(1) FPL Group ...................... 6,000 6,000 Chubb .......................... 4,000 -- Harley-Davidson ................ 5,200 5,200 Dow Chemical ................... 3,900 3,900 Hasbro ......................... 9,400 9,400 GTE ............................ 6,200 -- Hewlett-Packard ................ 1,700 1,700 International Business Machines 5,200 -- Morton International ........... 4,200 4,200 KeyCorp ........................ 5,100 -- Texaco ......................... 4,800 4,800 Minnesota Mining & Manufacturing 4,000 4,200 Travelers ...................... 2,500 2,500 PacifiCorp ..................... 9,500 -- Union Pacific Resources ........ 13,800 13,800 Pennzoil ....................... 4,300 -- - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO Common Stocks Common Stocks Altera ......................... 17,000 17,000 Advanced Micro Devices ......... 5,500 -- KLA Instruments ................ 17,200 25,000(2) Aspect Telecommunications ...... 16,500(3) -- LSI Logic ...................... 22,000 22,000 Bell Microproducts ............. 20,000 -- Microsoft ...................... 10,000 10,000 BMC Software ................... 2,000 -- Silicon Valley Group ........... 25,000 25,000 Cognex ......................... 5,500(4) -- Simware ........................ 100,000 100,000 Mattson Technology ............. 3,500 -- Tekelec ........................ 50,000 50,000 Premisys Communications ........ 2,700 -- Tencor Instruments ............. 27,000 27,000 PRI Automation ................. 4,000 -- Teradyne ....................... 30,000 30,000 Softkey International .......... 8,000 -- Tower Semiconductor ............ 26,500 26,500 Submicron Systems .............. 20,000 -- - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN FIXED INCOME SECURITIES PORTFOLIO U.S. Government Securities U.S. Government Securities U.S. Treasury Bonds 8 7/8%, U.S. Treasury Notes 8 7/8%, 2/15/2019 .................... $300,000 $1,200,000 2/15/1996 .................... $300,000 -- Corporate Bonds Corporate Bonds First Union 6.55%, 10/15/2035 200,000 200,000 James River 6.70%, 11/15/2003 . 150,000 --
See footnotes on page P-3. -- P-1 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Largest Portfolio Changes* (unaudited) (continued) - -------------------------------------------------------------------------------- During the six months ended December 31, 1995
Additions Shares Reductions Shares --------------------- --------------------- --------------------- --------------------- Holdings Holdings Increase 12/31/95 Decrease 12/31/95 -------- -------- -------- -------- SELIGMAN FRONTIER PORTFOLIO Common Stocks Common Stocks Amisys Managed Care Systems .... 20,000 20,000 Benson Eyecare ................. 2,250 -- California Energy .............. 10,160 12,060 C*ATS Software ................. 2,500 -- Ceridian ....................... 4,300 4,300 Expert Software ................ 1,500 -- Cognex ......................... 7,080 9,060(5) EZ Communications (Class A) .... 1,000 -- Credence Systems ............... 5,640 5,640 Lincare Holdings ............... 1,100 -- Cypress Semiconductor .......... 7,780 10,900(6) Living Centers of America ...... 710 -- Lam Research ................... 3,460 3,960 Patterson Dental ............... 680 -- Planar Systems ................. 9,010 9,010 Premisys Communications ........ 850 -- Tencor Instruments ............. 4,600 4,600 Trigen Energy .................. 860 -- Vicor .......................... 6,580 8,760(7) U.S. Xpress Enterprises (Class A) 2,510 -- - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL PORTFOLIO Common Stocks Common Stocks Cie Generale des Eaux .......... 652 652 Akzo Nobel ..................... 190 -- East Japan Railway ............. 13 25 BTR ............................ 6,600 -- Mitsui Marine & Fire ........... 8,000 8,000 Daiwa House Industry ........... 2,000 -- Mitsui O.S.K. Lines ............ 20,000 20,000 Fuji Bank ...................... 1,000 -- Nipppon Telegraph & Telephone .. 8 15 Groupe Danone .................. 150 -- Pioneer Electronics ............ 3,000 6,000 L'Oreal ........................ 95 -- Roussel ........................ 383 383 Legal & General Group .......... 3,000 -- Samsung Electronics ............ 1,000 1,000 Mitsubishi High-Tech ........... 1,000 -- Sumitomo Metal Industries ...... 21,000 21,000 Nippon Paper ................... 5,000 -- Zurich Versicherung ............ 173 193 Yamaha ......................... 1,000 4,000 - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO Common Stocks Common Stocks Amisys Managed Care Systems .... 5,000 5,000 Adelsten (Class B) ............. 30 -- Bau Holdings ................... 1,380 1,380 Exar ........................... 435 -- BT Industries .................. 5,000 5,000 F.H. Faulding .................. 1,100 -- Electro Scientific Industries .. 1,750 1,890 FSI International .............. 300 -- Fotolabo Club .................. 175 175 General Nutrition .............. 130 -- Hornbach Baumarkt .............. 1,034 1,530(8) International House of Pancakes 145 -- Iro ............................ 4,700 4,700 Life Sciences International .... 4,000 -- Opta Food Ingredients .......... 3,700 3,700 PRI Automation ................. 230 -- Otra N.V ....................... 270 3,640(9) Speedway Motorsports ........... 275 -- Plettac ........................ 240 240 Valmet Oy ...................... 910 --
See footnotes on page P-3. -- P-2 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- During the six months ended December 31, 1995
Principal Amount Principal Amount Additions or Shares Reductions or Shares --------------------- --------------------- --------------------- --------------------- Holdings Holdings Increase 12/31/95 Decrease 12/31/95 -------- -------- -------- -------- SELIGMAN HIGH-YIELD BOND PORTFOLIO Corporate Bonds Corporate Bonds Comcast 10 5/8%, 7/15/2012 ..... $92,000 $100,000 Cablevision Systems 10 3/4%, Fonorola 12 1/2%, 8/15/2002 .... 100,000 100,000 4/1/2004 ....................... $8,000 -- IXC Communications 13%, Continental Homes Holdings 12%, 10/15/2005 ................... 100,000 100,000 8/1/1999 ....................... 8,000 -- Midland Cogeneration Hollywood Casino 14%, Venture 11 3/4%, 4/1/1998 ....................... 8,000 -- 7/23/2005 .................... 100,000 100,000 K-III Communications 10 5/8%, Mobile Telecommunication 5/1/2002 ....................... 8,000 -- Technologies Kaiser Aluminum 12 3/4%, 13 1/2%, 12/15/2002 .......... 92,000 100,000 2/1/2003 ....................... 8,000 -- Premier Parks 12%, 8/15/2003 ... 100,000 100,000 NWCG Holdings 0%/13 1/2%, Rogers Cable Systems 11%, 6/15/1999 ...................... 10,000 -- 12/1/2015 .................... 100,000 100,000 OrNda Healthcorp 12 1/4%, TransTexas Gas 11 1/2%, 5/15/2002 ...................... 8,000 -- 6/15/2002 .................... 100,000 100,000 Stone Container 9 7/8%, United Meridian 10 3/8%, 2/1/2001 ....................... 8,000 -- 10/15/2005 ................... 100,000 100,000 Williamhouse-Regency 13%, 11/15/2005 ................... 100,000 100,000 - ------------------------------------------------------------------------------------------------------------------------------------ SELIGMAN INCOME PORTFOLIO Common Stocks Common Stocks FPL Group ...................... 3,000 shs. 3,000 shs. Bank of Boston ................. 8,539 shs. -- Network Equipment Technologies . 4,857 4,857 Century Telephone .............. 5,921 -- Chemical Banking ............... 3,820 -- Convertible Preferred Stocks Dow Chemical ................... 3,500 -- American General 3% ............ 4,500 4,500 New England Electric ........... 3,000 -- International Paper Capital 5 1/4% 3,000 3,000 St. Paul Capital 6% ............ 4,500 4,500 Convertible Preferred Stocks Snyder Oil (Class A) 6% ........ 5,000 5,000 Browning-Ferris 7 1/4% ........ 3,000 -- Subordinated Convertible Bonds Subordinated Convertible Bonds TriMas 5%, 8/1/2003 ............ $200,000 $200,000 Bay Networks 5 1/4%, 5/15/2003 $100,000 -- Corporate Bonds James River 6.70%, 11/15/2003 .. 350,000 -- MBNA 6.15%, 10/1/2003 .......... 500,000 500,000 USA Waste Services 8 1/2%, U.S. Government Securities 10/15/2002 ................... 200,000 -- U.S. Treasury Notes 7 3 1/44%, 12/31/1999 ................... 500,000 500,000 U.S. Government Securities U.S. Treasury Notes 6 1 1/42%, U.S. Treasury Notes 7 1/4%, 5/15/2005 .................... 500,000 500,000 11/15/1996 ................... 500,000 --
- -------------------------------------------------------------------------------- * Largest portfolio changes from the previous midyear to the current year-end are based on cost of purchases and proceeds from sales of securities. (1) Includes 2,300 shares received as a result of a 3-for-2 stock split. (2) Includes 6,000 shares received as a result of a 2-for-1 stock split. (3) Includes 11,500 shares received as a result of a 2-for-1 stock split. (4) Includes 2,000 shares received as a result of a 2-for-1 stock split. (5) Includes 1,580 shares received as a result of a 2-for-1 stock split. (6) Includes 2,500 shares received as a result of a 2-for-1 stock split. (7) Includes 2,180 shares received as a result of a 2-for-1 stock split. (8) Includes 477 shares received as a result of a 10-for-1 stock split. (9) Includes 3,276 shares received as a result of a 10-for-1 stock split. -- P-3 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview - -------------------------------------------------------------------------------- The following charts compare a $10,000 hypothetical investment made in each of the Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash Management Portfolio), since inception through December 31, 1995, to a $10,000 hypothetical investment made in the appropriate benchmark indices and/or averages for the same period. Accompanying each chart is a discussion of the economic factors, investment strategy, and sector performance that affected the Portfolio during the past year. Seligman Capital Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Five Since Year Yrs. Inception ---- ---- --------- Seligman Capital 27.17% 18.14% 13.59% Portfolio Lipper Capital Appreciation 30.40 17.62 13.60* S&P 500 37.58 16.59 14.95* *From June 30, 1988. - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Lipper Capital Capital Date Porftolio Appreciation S&P 500 ---- --------- ------------ ------- 6/21/88 ........ $10,000 $10,000 $10,000 6/30/88 ........ $10,000 $10,000 $10,000 9/30/88 ........ $10,090 $ 9,871 $10,034 12/31/88 ....... $10,060 $ 9,954 $10,344 3/31/89 ........ $10,240 $10,724 $11,077 6/30/89 ........ $10,840 $11,606 $12,055 9/30/89 ........ $12,040 $12,807 $13,346 12/31/89 ....... $11,717 $12,600 $13,621 3/31/90 ........ $11,344 $12,298 $13,211 6/30/90 ........ $12,715 $13,060 $14,042 9/30/90 ........ $ 9,720 $10,833 $12,113 12/31/90 ....... $11,344 $11,561 $13,199 3/31/91 ........ $13,596 $13,731 $15,116 6/30/91 ........ $13,778 $13,539 $15,081 9/30/91 ........ $15,455 $14,728 $15,888 12/31/91 ....... $18,042 $16,105 $17,220 3/31/92 ........ $16,842 $16,187 $16,785 6/30/92 ........ $15,601 $15,591 $17,104 9/30/92 ........ $16,791 $15,937 $17,643 12/31/92 ....... $19,268 $17,625 $18,531 3/31/93 ........ $19,904 $18,286 $19,341 6/30/93 ........ $19,552 $18,794 $19,435 9/30/93 ........ $20,846 $20,106 $19,938 12/31/93 ....... $21,514 $20,562 $20,340 3/31/94 ........ $20,837 $19,884 $19,626 6/30/94 ........ $19,010 $19,029 $19,708 9/30/94 ........ $20,736 $20,304 $20,672 12/31/94 ....... $20,526 $19,959 $20,669 3/31/95 ........ $21,802 $21,286 $22,681 6/30/95 ........ $23,112 $23,238 $24,847 9/30/95 ........ $25,196 $25,478 $26,821 12/31/95 ....... $26,102 $26,026 $28,436 Strong growth in corporate profits, with modest inflation and lower interest rates, provided a beneficial economic environment for the strong US equity markets in 1995. These favorable economic factors helped your portfolio's technology and interest-sensitive issues post significant gains during the year. On the other hand, poor retail sales, including the downhearted holiday period, made it very difficult for retailers and industries associated with this sector. Overweighting the technology sector of your portfolio, when the end-markets in telecommunications and computer-related products were strong, contributed positively to performance. Conversely, our underweighting of the utilities sector, which benefited from the decline in interest rates, negatively affected performance. The financial sector was the strongest performing sector, benefiting from both a favorable economic environment and strong individual company performance. The basic materials sector, however, was the weakest sector, due mainly to declining steel prices and generally poor earnings results. Looking ahead, your portfolio is well positioned to take advantage of continued strength in the US equity markets. Our well-diversified portfolio of strong, profitable companies should provide good relative earnings gains in an environment where the S&P 500 earnings growth is expected to slow. Seligman Common Stock Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Five Since Year Yrs. Inception ---- ---- --------- Seligman Common 27.28% 16.31% 13.55% Stock Portfolio Lipper Capital Appreciation 30.75 15.32 12.82* S&P 500 37.58 16.59 14.95* *From June 30, 1988. - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Lipper Common Growth Stock and Date Portfolio Income S&P 500 ---- --------- ------ ------- 6/21/88 ........ $10,000 $10,000 $10,000 6/30/88 ........ $10,000 $10,000 $10,000 9/30/88 ........ $10,190 $10,031 $10,034 12/31/88 ....... $10,180 $10,231 $10,344 3/31/89 ........ $10,581 $10,889 $11,077 6/30/89 ........ $11,223 $11,663 $12,055 9/30/89 ........ $12,317 $12,664 $13,346 12/31/89 ....... $12,635 $12,659 $13,621 3/31/90 ........ $12,522 $12,352 $13,211 6/30/90 ........ $13,315 $12,979 $14,042 9/30/90 ........ $10,965 $11,289 $12,113 12/31/90 ....... $12,237 $12,117 $13,199 3/31/91 ........ $14,425 $13,860 $15,116 6/30/91 ........ $14,287 $13,802 $15,081 9/30/91 ........ $15,281 $14,574 $15,888 12/31/91 ....... $16,295 $15,622 $17,220 3/31/92 ........ $16,604 $15,629 $16,785 6/30/92 ........ $16,472 $15,656 $17,104 9/30/92 ........ $17,146 $16,066 $17,643 12/31/92 ....... $18,272 $17,029 $18,531 3/31/93 ........ $18,928 $17,820 $19,341 6/30/93 ........ $19,127 $17,979 $19,435 9/30/93 ........ $19,608 $18,626 $19,938 12/31/93 ....... $20,454 $19,055 $20,340 3/31/94 ........ $19,621 $18,470 $19,626 6/30/94 ........ $19,730 $18,409 $19,708 9/30/94 ........ $20,727 $19,204 $20,672 12/31/94 ....... $20,463 $18,902 $20,669 3/31/95 ........ $21,933 $20,411 $22,681 6/30/95 ........ $23,314 $22,066 $24,847 9/30/95 ........ $24,769 $23,644 $26,821 12/31/95 ....... $26,044 $24,715 $28,436 Stable economic growth in the US, coupled with declining interest rates, provided a positive backdrop for strong performance by financial markets in 1995. Also, the con tinuation of low inflation bene fited both stocks and bonds, which made these in vestments more attractive relative to real assets such as gold or real estate. Our decision to modestly over weight financial stocks, based on our expectation for a decline in interest rates in 1995, contributed greatly to your portfolio's strong performance. We continue to remain broadly diversified in our stock selection. While a strategy of betting heavily on individual sectors might have improved near-term performance, we believe it would have jeopardized your portfolio's long-term performance. -- P-4 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- Looking forward, we believe that continued low inflation and modest economic growth should provide a positive environment for investors in 1996. Stock selection, though, will be an important factor in performance. We are committed to the maintenance of a broadly diversified portfolio, focusing on companies with reasonable current income and good earnings and dividend growth prospects. Seligman Communications and Information Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Since Year Inception ---- --------- Seligman Communications 38.55% 35.26% and Information Portfolio Lipper Science and Technology 37.68 34.16* S&P 500 37.58 29.23* *From September 30, 1994. - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Communications Lipper and Science Information and Date Portfolio Technology S&P 500 ---- --------- ---------- ------- 10/11/94 ....... $10,000 $10,000 $10,000 12/31/94 ....... $10,440 $10,514 $10,020 3/31/95 ........ $11,030 $11,188 $10,996 6/30/95 ........ $14,690 $13,367 $12,046 9/30/95 ........ $16,950 $15,421 $13,003 12/31/95 ....... $14,464 $14,447 $13,786 Virtually every major segment of technology experienced robust growth during the year: the global personal computer market grew 23% to a record 64 million units; wireless telephone handsets and infrastructure equipment sales expanded by 35%; the global semiconductor industry grew 40% to a record $150 billion; and the Internet was transformed from a small on-line community of scien tists and academics into a mass-market information super highway. The fourth quarter however, witnessed a decline in technology stock prices. We believe a number of factors were responsible, including pricing pressure on certain types of memory chips, a slower than expected start for Microsoft's new operating system, Windows 95, and slower unit growth in the US cellular phone market. In spite of the recent adversity in the technology sector, we remain optimistic regarding the appreciation potential of your portfolio's holdings in 1996. Large segments of the US technology sector are trading at unusually low relative valuations to the broader market indices. In the past, such valuations have augured favorably for subsequent returns. Therefore, we remain as enthused as ever about the prospects for technology - the world's fastest growing major industry. If anything, the pace of change has accelerated, and with it, the potential opportunities. Seligman Fixed Income Securities Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - -------------------------------------------------- Average Annual Total Returns+ One Five Since Year Yrs. Inception ---- ---- --------- Seligman Fixed Income 19.18% 8.51% 7.74% Securities Portfolio Lipper Fixed Income Average 15.31 9.01 8.44* Lehman Brothers Gov't Bond Index 18.34 9.37 9.64* *From June 30, 1988. - -------------------------------------------------- The following table is represented as a line chart in the printed material Lehman Seligman Brothers Lipper Fixed Government Fixed Income Bond Income Date Portfolio Index Average ---- --------- ----- ------- 6/21/88 ........ $10,000 $10,000 $10,000 6/30/88 ........ $10,000 $10,000 $10,000 9/30/88 ........ $10,100 $10,169 $10,172 12/31/88 ....... $10,101 $10,265 $10,301 3/31/89 ........ $10,121 $10,373 $10,405 6/30/89 ........ $10,670 $11,207 $11,000 9/30/89 ........ $10,691 $11,300 $11,077 12/31/89 ....... $10,979 $11,725 $11,312 3/31/90 ........ $10,797 $11,580 $11,170 6/30/90 ........ $11,119 $11,985 $11,551 9/30/90 ........ $11,162 $12,085 $11,532 12/31/90 ....... $11,653 $12,748 $11,933 3/31/91 ........ $11,924 $13,025 $12,393 6/30/91 ........ $12,094 $13,201 $12,648 9/30/91 ........ $12,727 $13,953 $13,348 12/31/91 ....... $13,352 $14,701 $13,990 3/31/92 ........ $13,121 $14,444 $13,966 6/30/92 ........ $13,485 $15,016 $14,473 9/30/92 ........ $14,081 $15,757 $14,984 12/31/92 ....... $14,099 $15,764 $14,981 3/31/93 ........ $14,548 $16,476 $15,587 6/30/93 ........ $14,879 $16,952 $15,993 9/30/93 ........ $15,249 $17,503 $16,385 12/31/93 ....... $15,224 $17,444 $16,511 3/31/94 ........ $14,787 $16,919 $16,108 6/30/94 ........ $14,622 $16,725 $15,900 9/30/94 ........ $14,742 $16,796 $15,991 12/31/94 ....... $14,708 $16,855 $15,927 3/31/95 ........ $15,215 $17,648 $16,541 6/30/95 ........ $16,263 $18,743 $17,388 9/30/95 ........ $16,596 $19,074 $17,717 12/31/95 ....... $17,530 $19,946 $18,360 One of the key factors to your portfolio's performance is the movement of interest rates. In 1995, moderating economic growth, subdued inflation, and the potential for a credible deficit reduction accord helped lower interest rates. The Federal Reserve Board (FRB) reduced the federal funds rate twice during the year, resulting in a rally in bond prices. This led to a positive total return for your portfolio. We were neutral as we entered 1995, and began extending the maturities of the issues in the portfolio by purchasing long-term bonds when economic growth started to moderate and bring down the rate of inflation and interest rates. We used this strategy in order to take advantage of declining interest rates, as long-term bonds perform better than short-term bonds in a declining interest rate environment. We favored U.S. Treasury securities in 1995 over GNMA mortgage-backed securities, as Treasury securities tend to outperform mortgage-backed securities in a declining interest rate environment. Mortgage-backed securities' average maturities shorten as interest rates decline due to the refinancing of mortgages. In addition, your portfolio's position in investment-grade corporate -- P-5 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- bonds, which represented 32.3% of the portfolio at December 31, contributed to its strong performance. Sluggish income growth and high consumer debt will more than likely slow economic growth in the first half of 1996. This moderating growth trend, coupled with a potential balanced-budget accord, could prompt the FRB to ease monetary policy further and lead to continued interest rate declines. If this scenario comes to fruition, we expect that we will continue to hold and purchase long-maturity Treasury Bonds. Seligman Frontier Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Since Year Inception ---- --------- Seligman Frontier Portfolio 33.28% 32.48% Lipper Small Company Fund 31.45 24.28* NASDAQ 39.93 29.08* *From September 30, 1994. - ---------------------------------------------- The following table is represented as a line chart in the printed material Lipper Small Seligman Company Frontier Fund Date Portfolio Index NASDAQ ---- --------- ----- ------ 10/11/94 ....... $10,000 $10,000 $10,000 12/31/94 ....... $10,580 $9,987 $9,839 3/31/95 ........ $11,300 $10,548 $10,692 6/30/95 ........ $12,260 $11,525 $12,213 9/30/95 ........ $13,780 $12,967 $13,654 12/31/95 ....... $14,101 $13,128 $13,766 The economic growth and con sumer demand in 1995, although slightly slower than 1994's pace, remained strong for the companies in your portfolio, leading to its strong returns. During the last quarter of 1995, retail sales slowed, which prompted retailers to adjust inventories. These adjustments, in turn, had a negative impact on the trucking industry as the need for new shipments and deliveries abated. Consequently, both the retail and trucking industries had a difficult year, and while we took action as quickly as possible, your portfolio experienced some losses. On the upside, the continued demand for personal computers, pagers, computer networking, and electronics in automobiles, created strong growth in earnings and share prices for the companies in the technology segment of your portfolio. Finally, the financial sector also performed well as it benefited from the benign interest rate environment and strong demand for new loans. The outlook for the year ahead is similar to what we have been experiencing. Moderate inflation and low interest rates make for a favorable investment environment. Valuations in the small-cap universe are reasonable. This is especially true of the stocks in your portfolio. Corporate earnings continue to look good, and the managements of the corporations in your portfolio continue to express positive outlooks for the coming year. Seligman Henderson Global Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Since Year Inception ---- --------- Seligman Henderson Global Portfolio 11.34% 10.05% EAFE Index 11.54 10.53 MSCI World Index 21.31 13.04 - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Henderson MSCI Global EAFE World Date Portfolio Index Index ---- --------- ----- ----- 5/3/93 ......... $10,000 $10,000 $10,000 6/30/93 ........ $10,010 $10,057 $10,148 9/30/93 ........ $10,480 $10,731 $10,637 12/31/93 ....... $11,439 $10,830 $10,821 3/31/94 ........ $10,987 $11,216 $10,900 6/30/94 ........ $11,399 $11,797 $11,241 9/30/94 ........ $11,751 $11,816 $11,495 12/31/94 ....... $11,591 $11,704 $11,425 3/31/95 ........ $11,428 $11,931 $11,975 6/30/95 ........ $11,765 $12,027 $12,502 9/30/95 ........ $12,603 $12,538 $13,216 12/31/95 ....... $12,905 $13,055 $13,860 Overall, economic factors have played a relatively modest role in the direction of international stock markets. Economies have gener ally been growing steadily in the more mature countries of the world, although there are some signs of overheating in the Pacific. The consistent decline in inflation almost everywhere has been a very positive feature with rates of inflation invariably coming in lower than consensus estimates. This factor has helped bond markets, and long-bond yields have declined virtually everywhere, providing a positive backdrop for international equity investing. The key economic question going forward is whether the slowdown in global growth is just temporary or whether it presages a move towards recession. We support the former view as we see modest growth in consumer spending next year helping to keep economies moving along -- although not at a particularly rapid pace. -- P-6 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- This scenario should also be reasonably favorable for inflation, and there still appears to be very few significant inflationary pressures on a global basis. With this background in mind, we continue to favor financial assets. Provided there is some economic growth this year, corporate earnings should continue to improve leading to a positive stock market background. Seligman Henderson Global Smaller Companies Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Since Year Inception ---- --------- Seligman Henderson Global Smaller Companies Portfolio 17.38% 17.30% Lipper Global Small Companies Average 15.62 8.54* MSCI World Index 21.31 16.11* *From September 30, 1994. - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Henderson Lipper Global Global Smaller Small MSCI Companies Companies World Date Portfolio Average Index ---- --------- ------- ----- 10/11/94 ....... $10,000 $10,000 $10,000 12/31/94 ....... $10,353 $ 9,584 $ 9,939 3/31/95 ........ $10,594 $ 9,470 $10,417 6/30/95 ........ $10,886 $10,182 $10,876 9/30/95 ........ $11,860 $11,047 $11,497 12/31/95 ....... $12,152 $11,081 $12,057 Generally, the economic back ground has had a rather mixed effect on smaller companies worldwide. In Japan, smaller companies performed poorly as the economy continued to suffer from the effects of the strong Yen. European smaller companies performed reasonably well in the early part of the year. However, with more recent evidence of slowing economies and fears over what 1996 will bring, smaller companies have begun to underperform larger companies. By contrast, in the US, economic factors have had little impact on smaller companies, which have been boosted by the strength of the technology sector. Outside the US, smaller companies have generally suffered in recent months as economic growth around the world has slowed. Our economic forecasts suggest that economic growth should improve during 1996, and this would provide a reasonably benign backdrop for smaller companies. We see particularly attractive value in Continental Europe; however, the area with the most potential to improve is Japan -- provided its economy does improve next year. We believe this will be the case and, therefore, we are likely to increase our Japanese weighting steadily over the next few months. Overall, smaller companies continue to provide an abundance of exciting investment opportunities, and we believe the background for investing should be very positive. Seligman High-Yield Bond Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Return+ Since Inception --------- Seligman High Yield Bond Portfolio 7.37% Lipper High-Yield Bond Fund Index 8.79 Merrill Lynch Master Index 10.50 - ---------------------------------------------- The following table is represented as a line chart in the printed material Lipper Seligman High-Yield Merrill High-Yield Bond Lynch Bond Fund Master Date Portfolio Index Index ---- --------- ----- ----- 5/1/95 ......... $10,000 $10,000 $10,000 5/31/95 ........ $10,000 $10,225 $10,312 6/30/95 ........ $10,030 $10,261 $10,390 7/31/95 ........ $10,160 $10,469 $10,509 8/31/95 ........ $10,150 $10,489 $10,573 9/30/95 ........ $10,300 $10,600 $10,693 10/31/95 ....... $10,440 $10,671 $10,769 11/30/95 ....... $10,540 $10,723 $10,875 12/31/95 ....... $10,737 $10,879 $11,050 The decline in interest rates during 1995 had a positive impact on the performance and growth of your portfolio throughout the year. Increased demand for high current income was evident as investors infused $10.2 billion into high-yield mutual funds. Your portfolio continued its strategy of investing in credits with improving cash flows, strong industry fundamentals, and seasoned management teams. The hotel and gaming sectors performed well, in particular those located in Atlantic City, as fears of increased competition subsided. Additionally, strong demand within the communications area helped advance many of your portfolio's holdings in this sector. Finally, the health care and utility sectors continue to show positive trends. We continue to find the high-yield marketplace an attractive investment for those seeking a high level of current income. We expect credit quality to show steady improvements within the media sectors, with tele commu ni cations reform as the driving force. -- P-7 -- - -------------------------------------------------------------------------------- Annual Performance Overview (continued) December 31, 1995 - -------------------------------------------------------------------------------- Seligman Income Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. - ---------------------------------------------- Average Annual Total Returns+ One Five Since Year Yrs. Inception ---- ---- --------- Seligman Income 17.98% 13.56% 10.03% Portfolio Lipper Income 22.10 12.69 10.69* S&P 500 37.58 16.59 14.95* *From June 30, 1988. - ---------------------------------------------- The following table is represented as a line chart in the printed material Seligman Income Lipper Date Portfolio S&P 500 Income ---- --------- ------- ------ 6/21/88 ........ $10,000 $10,000 $10,000 6/30/88 ........ $10,000 $10,000 $10,000 9/30/88 ........ $10,090 $10,034 $10,160 12/31/88 ....... $10,110 $10,344 $10,272 3/31/89 ........ $10,452 $11,077 $10,615 6/30/89 ........ $11,097 $12,055 $11,183 9/30/89 ........ $11,379 $13,346 $11,622 12/31/89 ....... $11,587 $13,621 $11,776 3/31/90 ........ $11,566 $13,211 $11,593 6/30/90 ........ $11,673 $14,042 $11,918 9/30/90 ........ $10,512 $12,113 $11,311 12/31/90 ....... $10,880 $13,199 $11,790 3/31/91 ........ $12,105 $15,116 $12,793 6/30/91 ........ $12,609 $15,081 $13,032 9/30/91 ........ $13,639 $15,888 $13,910 12/31/91 ....... $14,241 $17,220 $14,680 3/31/92 ........ $14,823 $16,785 $14,826 6/30/92 ........ $15,190 $17,104 $15,288 9/30/92 ........ $15,747 $17,643 $15,838 12/31/92 ....... $16,479 $18,531 $16,122 3/31/93 ........ $17,376 $19,341 $16,955 6/30/93 ........ $17,853 $19,435 $17,337 9/30/93 ........ $18,389 $19,938 $17,903 12/31/93 ....... $18,518 $20,340 $18,075 3/31/94 ........ $17,736 $19,626 $17,539 6/30/94 ........ $17,199 $19,708 $17,453 9/30/94 ........ $17,785 $20,672 $17,789 12/31/94 ....... $17,413 $20,669 $17,546 3/31/95 ........ $18,042 $22,681 $18,512 6/30/95 ........ $19,265 $24,847 $19,601 9/30/95 ........ $20,400 $26,821 $20,501 12/31/95 ....... $20,544 $28,436 $21,421 The dramatic decline in interest rates in 1995 had a very positive impact on your portfolio. Investors' expectations for stable economic growth coupled with modest inflation greatly benefited income-sensitive investments such as bonds, convertible securities, and higher yielding equities - traditional investments for your portfolio. The financial, technology, and utility industries - three of the larger sectors in the convertible and equity portions of your portfolio - did particularly well. Additionally, the bonds held in your portfolio contributed not only high current income, but also solid capital appreciation. Issue selection will be extremely important for your portfolio's performance in 1996. We will pay particular attention to identifying value, both in the stock and bond markets. - ---------- + Performance data quoted represent past performance and assume that all dividends and distributions are invested in additional shares. The investment return and principal value of an investment will fluctuate so that shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. -- P-8 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 95.2% AUTOMOTIVE AND RELATED -- 3.1% Cooper Tire & Rubber ........................ 5,000 $ 123,125 Harley-Davidson ............................. 5,800 166,750 ----------- 289,875 ----------- BASIC MATERIALS -- 3.1% Nucor ....................................... 2,100 119,962 Olin ........................................ 2,300 170,775 ----------- 290,737 ----------- BUSINESS SERVICES AND SUPPLIES -- 1.7% Interpublic Group of Companies .............. 3,600 156,150 ----------- COMPUTER GOODS AND SERVICES -- 5.5% Altera* ..................................... 2,200 109,312 FIserv* ..................................... 6,000 179,625 Intel ....................................... 2,400 136,350 Sequent Computer Systems .................... 6,000 86,250 ----------- 511,537 ----------- CONSUMER GOODS AND SERVICES -- 8.6% Estee Lauder* ............................... 2,500 87,187 Masco ....................................... 4,600 144,325 Newell ...................................... 5,800 150,075 Oakley* ..................................... 5,400 183,600 Tambrands ................................... 1,600 76,400 Tommy Hilfiger* ............................. 3,700 156,787 ----------- 798,374 ----------- DRUGS AND HEALTH CARE -- 11.5% Amgen* ...................................... 3,600 213,525 Arrow International ......................... 3,000 121,875 Columbia/HCA Healthcare ..................... 2,900 147,175 Humana* ..................................... 5,300 145,087 Mid Atlantic Medical Services ............... 7,400 179,450 Oxford Health Plans ......................... 2,500 184,375 Sunrise Medical * ........................... 4,000 74,000 ----------- 1,065,487 ----------- FINANCIAL SERVICES -- 11.5% Amerin* ..................................... 7,200 192,150 Donaldson, Lufkin & Jenrette ................ 6,000 187,500 MBNA ........................................ 4,800 177,000 Progressive (Ohio) .......................... 3,700 180,838 Transatlantic Holdings ...................... 1,700 124,738 Travelers ................................... 3,300 207,488 ----------- 1,069,714 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-9 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO (continued) Shares Value ------ ----- FOOD AND FOOD SERVICES -- 4.4% Brinker International* ...................... 5,200 $ 78,650 Hart Brewing ................................ 10,650 159,750 PepsiCo ..................................... 3,000 167,625 ----------- 406,025 ----------- LEISURE AND RELATED -- 10.4% Chris-Craft Industries* ..................... 3,600 155,700 Circus Circus Enterprises* .................. 3,700 103,137 HFS Group* .................................. 2,400 196,200 Infinity Broadcasting* ...................... 3,700 137,825 Mattel ...................................... 6,250 192,187 Mirage Resorts* ............................. 5,200 179,400 ----------- 964,449 ----------- MEDICAL EQUIPMENT -- 3.5% Guidant ..................................... 5,000 211,250 Physio-Control International* ............... 6,200 112,375 ----------- 323,625 ----------- RETAIL TRADE -- 5.5% Home Depot .................................. 3,500 167,562 Illinois Tool Works ......................... 2,700 159,300 Nordstrom ................................... 2,400 96,900 OfficeMax* .................................. 4,100 91,738 ----------- 515,500 ----------- SOFTWARE -- 14.9% 3DO* ........................................ 6,500 65,812 7th Level* .................................. 3,800 54,388 Activision* ................................. 17,500 193,594 Arbor Software .............................. 2,000 94,000 BMC Software* ............................... 1,500 63,938 Comshare .................................... 7,000 185,500 Microsoft* .................................. 1,900 166,844 Objective Systems Integrators* .............. 1,900 103,787 Spectrum Holobyte* .......................... 7,000 45,063 Sterling Software* .......................... 3,300 205,838 Sybase* ..................................... 4,020 144,218 Symantec* ................................... 2,700 62,606 ----------- 1,385,588 ----------- SPECIALTY CHEMICALS -- 1.1% Schulman, A ................................. 4,687 104,872 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-10 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- TECHNOLOGIES -- 3.6% Litton Industries* .......................... 3,400 shs. $ 151,300 Minerals Technologies ....................... 5,000 182,500 ----------- 333,800 ----------- TELECOMMUNICATIONS -- 6.8% British Sky Broadcasting (ADRs) ............. 4,900 184,362 Century Telephone Enterprises ............... 4,100 130,175 Viacom (Class B) ............................ 3,000 142,125 WorldCom* ................................... 5,100 180,413 ----------- 637,075 ----------- Total Common Stocks (Cost $7,412,353) ....... 8,852,808 REPURCHASE AGREEMENTS -- 10.8% (Cost $1,000,000) HSBC Securities, Inc. 5%, maturing 1/3/1996 collateralized by: $985,000 U.S. Treasury Notes 6 7/8%, 3/31/1997, with a fair market value of $1,020,059 ............................ $ 1,000,000 1,000,000 ----------- Total Investments -- 106.0% (Cost $8,412,353) 9,852,808 Other Assets Less Liabilities -- (6.0)% ..... (559,292) ----------- Net Assets -- 100.0% ........................ $ 9,293,516 =========== - ---------- * Non-income producing security. See notes to financial statements. -- P-11 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO Annualized Yield on Purchase Principal Date Amount Value --------- --------- --------- U.S. GOVERNMENT SECURITIES -- 45.5% U.S. Treasury Bills, 3/7/1996 ............... 5.50% $1,600,000 $1,584,365 U.S. Treasury Bills, 4/25/1996 .............. 5.37 2,000,000 1,966,906 ---------- Total U.S. Government Securities (Cost $3,551,271) 3,551,271 ---------- BANKERS' ACCEPTANCES -- 2.5% (Cost $198,047) Chase Manhattan Bank, New York, 3/4/1996 .... 5.76 200,000 198,047 ---------- CERTIFICATES OF DEPOSIT -- 6.4% Harris Trust & Savings, Chicago, 3/1/1996 ... 5.79 300,000 300,010 Wachovia Bank of Georgia, 1/25/1996 ......... 5.86 200,000 200,003 ---------- Total Certificates of Deposit (Cost $500,013) 500,013 ---------- COMMERCIAL PAPER -- 37.6% American Express Credit Corp., 1/17/1996 .... 5.75 250,000 249,371 American General Finance Corp., 2/21/1996 ... 5.74 300,000 297,603 AT&T Capital Corp., 3/15/1996 ............... 5.60 300,000 296,596 Associates Corp. of North America, 4/16/1996 5.55 350,000 344,383 Beneficial Corp., 2/21/1996 ................. 5.57 300,000 297,658 CoreStates Financial Corp., 3/27/1996 ....... 5.61 300,000 296,044 Ford Motor Credit Corp., 2/12/1996 .......... 5.73 300,000 298,023 General Electric Capital Corp., 2/21/1996 ... 5.75 300,000 297,603 John Deere Capital Corp., 1/31/1996 ......... 5.77 250,000 248,821 Pitney Bowes Credit Corp., 2/2/1996 ......... 5.71 300,000 298,493 ---------- Total Commercial Paper (Cost $2,924,595) .... 2,924,595 ---------- REPURCHASE AGREEMENTS -- 7.7% (cost $600,000) HSBC Securities, Inc. 5%, maturing 1/3/1996 collateralized by: $590,000 U.S. Treasury Notes 6 7/8%, 3/31/1997, with a fair market value of $611,000 ..... 600,000 600,000 ---------- Total Investments -- 99.7% (Cost $7,773,926). 7,773,926 Other Assets Less Liabilities -- 0.3% ....... 25,585 ---------- Net Assets -- 100.0% ........................ $7,799,511 ========== SELIGMAN COMMON STOCK PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 84.2% ADVERTISING -- 1.1% Omnicom Group ............................... 8,400 $ 312,900 ----------- AEROSPACE/DEFENSE -- 1.7% General Motors (Class H) .................... 5,600 275,100 United Technologies ......................... 2,300 218,212 ----------- 493,312 ----------- - ---------- See notes to financial statements. -- P-12 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares Value ------ ----- APPAREL AND TEXTILES -- 1.2% Liz Claiborne ............................... 5,800 $ 160,950 Unifi ....................................... 8,400 186,375 ----------- 347,325 ----------- AUTOMOTIVE AND RELATED -- 1.8% Echlin ...................................... 3,300 120,450 Genuine Parts ............................... 3,000 123,000 Harley-Davidson ............................. 5,200 149,500 The Pep Boys ................................ 5,400 138,375 ----------- 531,325 ----------- BUILDING AND CONSTRUCTION -- 0.8% Cemex S.A. (ADSs) ........................... 16,875 60,557 Sherwin-Williams ............................ 4,000 163,000 ----------- 223,557 ----------- CHEMICALS -- 2.4% Air Products and Chemicals .................. 6,200 327,050 Crompton & Knowles .......................... 7,600 100,700 Dow Chemical ................................ 3,900 274,463 ----------- 702,213 ----------- CONSUMER GOODS AND SERVICES -- 11.3% Coca-Cola ................................... 4,800 356,400 Colgate-Palmolive ........................... 4,200 295,050 Eastman Kodak ............................... 3,200 214,400 Gillette .................................... 8,200 427,425 International Flavor & Fragrance ............ 5,900 283,200 Lowe's ...................................... 4,300 144,050 Morton International ........................ 4,200 150,675 RJR Nabisco Holdings ........................ 4,400 135,850 PepsiCo ..................................... 12,100 676,088 Procter & Gamble ............................ 4,500 373,500 Rubbermaid .................................. 7,500 191,250 ----------- 3,247,888 ----------- DRUGS AND HEALTH CARE -- 6.2% Abbott Laboratories ......................... 6,200 258,850 American Home Products ...................... 2,000 194,000 Bard (C.R.) ................................. 5,000 161,250 Bausch & Lomb ............................... 2,500 99,062 Bristol-Myers Squibb ........................ 2,900 249,037 Guidant ..................................... 3,800 160,550 Mallinckrodt Group .......................... 3,700 134,588 Schering-Plough ............................. 9,600 525,600 ----------- 1,782,937 ----------- - ---------- See notes to financial statements. -- P-13 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares Value ------ ----- ELECTRIC AND GAS UTILITIES -- 1.0% FPL Group ................................... 6,000 $ 278,250 ----------- ELECTRONICS -- 0.8% Motorola .................................... 4,200 239,400 ----------- ENERGY -- 11.5% Anadarko Petroleum .......................... 2,900 156,962 Atlantic Richfield .......................... 2,100 232,575 Baker Hughes ................................ 7,000 170,625 Enron ....................................... 6,300 240,187 Mobil ....................................... 2,400 268,800 Panhandle Eastern ........................... 9,300 259,238 Royal Dutch Petroleum ....................... 3,700 522,163 Schlumberger ................................ 5,400 373,950 Sonat ....................................... 9,200 327,750 Texaco ...................................... 4,800 376,800 Union Pacific Resources ..................... 13,800 350,175 ----------- 3,279,225 ----------- FINANCE AND INSURANCE -- 11.1% Aetna Life & Casualty ....................... 3,200 221,600 American International Group ................ 4,000 370,000 Bank of New York ............................ 4,800 234,000 BankAmerica ................................. 2,200 142,450 Federal National Mortgage Association ....... 2,600 322,725 General Re .................................. 3,100 480,500 Household International ..................... 1,600 94,600 Morgan (J.P.) ............................... 1,900 152,475 NationsBank ................................. 5,814 404,800 PNC Bank .................................... 5,900 190,275 St. Paul Companies .......................... 2,500 139,062 State Street Boston ......................... 6,300 283,500 Travelers ................................... 2,500 157,187 ----------- 3,193,174 ----------- FOOD -- 4.4% Campbell Soup ............................... 4,700 282,000 ConAgra ..................................... 4,050 167,062 CPC International ........................... 4,200 288,225 General Mills ............................... 4,100 236,775 Sara Lee .................................... 9,500 302,813 ----------- 1,276,875 ----------- INDUSTRIAL EQUIPMENT -- 2.6% Emerson Electric ............................ 2,200 179,850 General Electric ............................ 7,900 568,800 ----------- 748,650 ----------- - ---------- See notes to financial statements. -- P-14 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares Value ------ ----- LEISURE AND ENTERTAINMENT -- 1.5% Disney, Walt ................................ 2,400 $ 141,600 Hasbro ...................................... 9,400 291,400 ----------- 433,000 ----------- OFFICE EQUIPMENT -- 1.0% Pitney Bowes ................................ 6,400 300,800 ----------- PAPER PRODUCTS -- 1.3% International Paper ......................... 3,500 132,563 Kimberly-Clark .............................. 3,000 248,250 ----------- 380,813 ----------- PRINTING AND PUBLISHING -- 2.5% Donnelley (R.R.) ............................ 3,000 118,125 Knight-Ridder Newspapers .................... 5,600 350,000 Reader's Digest (Class A) ................... 2,700 138,375 Tribune ..................................... 2,000 122,250 ----------- 728,750 ----------- RESTAURANTS -- 0.5% Wendy's International ....................... 7,100 150,875 ----------- RETAIL TRADE -- 5.5% American Stores ............................. 6,700 179,225 Dillard Department Stores ................... 4,200 119,700 Kmart ....................................... 5,800 42,050 Limited ..................................... 5,900 102,512 May Department Stores ....................... 6,800 287,300 Nordstrom ................................... 6,700 270,513 Penney (J. C.) .............................. 4,000 190,500 Sears, Roebuck .............................. 4,000 156,000 Wal-Mart .................................... 6,600 147,675 Woolworth ................................... 7,200 93,600 ----------- 1,589,075 ----------- STEEL -- 0.4% Nucor ....................................... 2,200 125,675 ----------- TECHNOLOGY -- 2.9% Applied Materials ........................... 3,400 133,663 Cray Research ............................... 11,000 272,250 Hewlett-Packard ............................. 1,700 142,375 Intel ....................................... 2,400 136,350 Teradyne .................................... 5,700 142,500 ----------- 827,138 ----------- TELECOMMUNICATIONS -- 1.9% ALLTEL ...................................... 9,100 268,450 American Telephone & Telegraph .............. 4,200 271,950 ----------- 540,400 ----------- - ---------- See notes to financial statements. -- P-15 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- TELEPHONE UTILITIES -- 1.0% NYNEX ....................................... 5,300 shs. $ 286,200 ----------- TOBACCO -- 2.3% Philip Morris ............................... 4,200 380,100 Schweitzer-Mauduit International ............ 300 6,938 UST Inc. .................................... 8,400 280,350 ----------- 667,388 ----------- TRANSPORTATION -- 1.8% Caliber System .............................. 4,850 236,437 Conrail ..................................... 2,900 203,000 NFC ......................................... 40,000 88,145 ----------- 527,582 ----------- MISCELLANEOUS/DIVERSIFIED -- 3.7% Corning (Delaware) .......................... 12,200 390,400 Dover ....................................... 4,400 162,250 Minnesota Mining & Manufacturing ............ 4,200 278,250 Tenneco ..................................... 5,000 248,125 ----------- 1,079,025 ----------- Total Common Stocks (Cost $17,603,035) ...... 24,293,752 ----------- SUBORDINATED CONVERTIBLE BONDS -- 1.1% EMC 4 1/4%, 1/1/2001 ........................ $ 125,000 124,375 MascoTech 4 1/2%, 12/15/2003 ................ 250,000 195,625 ----------- Total Subordinated Convertible Bonds (Cost $321,514)............................ 320,000 ----------- REPURCHASE AGREEMENTS -- 13.9% (Cost $4,000,000) HSBC Securities, Inc. 5%, maturing 1/3/1996 collateralized by: $3,950,000 U.S. Treasury Notes 6 7/8%, 3/31/1997, with a fair market value of $4,090,591 .... 4,000,000 4,000,000 ----------- Total Investments -- 99.2% (Cost $21,924,549) 28,613,752 Other Assets Less Liabilities -- 0.8% ....... 222,293 ----------- Net Assets -- 100.0% ........................ $28,836,045 =========== - ---------- See notes to financial statements. -- P-16 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 97.6% COMMUNICATIONS INFRASTRUCTURE -- 11.1% 3Com* ....................................... 18,000 $ 840,375 CIDCO* ...................................... 31,000 786,625 Cisco Systems* .............................. 8,000 597,500 ECI Telecommunications ...................... 30,000 686,250 General Scanning* ........................... 20,000 195,000 Madge Networks* ............................. 10,000 445,625 StrataCom* .................................. 2,500 183,125 Tekelec* .................................... 50,000 528,125 ----------- 4,262,625 ----------- COMPUTER HARDWARE/PERIPHERALS -- 14.6% Adaptec* .................................... 16,000 656,000 Compaq Computers* ........................... 17,000 816,000 Electronics for Imaging* .................... 10,000 433,750 EMC* ........................................ 35,000 538,125 Komag* ...................................... 12,500 573,438 Mylex* ...................................... 20,000 386,250 Read-Rite* .................................. 20,000 463,750 Seagate Technology* ......................... 13,000 617,500 Tektronix ................................... 15,000 736,875 Vicor* ...................................... 20,000 397,500 ----------- 5,619,188 ----------- COMPUTER SOFTWARE -- 21.4% FTP Software* ............................... 23,000 668,437 Glenayre Technologies* ...................... 12,000 747,000 Informix* ................................... 27,000 811,687 Mentor Graphics ............................. 30,000 543,750 Microsoft ................................... 10,000 878,125 Netmanage* .................................. 15,000 346,875 Network General ............................. 18,000 596,250 Oracle Systems* ............................. 18,000 762,750 Parametric Technology* ...................... 12,000 796,500 Simware* .................................... 100,000 606,250 Smith Micro Software* ....................... 50,000 350,000 Symantec* ................................... 30,000 695,625 Synopsys* ................................... 11,000 419,375 ----------- 8,222,624 ----------- CONTRACT MANUFACTURING -- 3.5% Altron* ..................................... 25,000 746,875 Merix* ...................................... 20,000 593,750 ----------- 1,340,625 ----------- SEMICONDUCTORS -- 23.3% Altera* ..................................... 17,000 844,687 Cypress Semiconductor* ...................... 52,000 663,000 Integrated Device Technology* ............... 40,000 517,500 - ---------- * Non-income producing security. See notes to financial statements. -- P-17 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued) Shares Value ------ ----- SEMICONDUCTORS (continued) Intel ....................................... 13,000 $ 738,563 Lattice Semiconductor ....................... 24,000 784,500 Linear Technology ........................... 10,000 393,750 LSI Logic* .................................. 22,000 720,500 Maxim Integrated Products* .................. 20,000 770,000 Microchip Technology* ....................... 21,000 769,125 National Semiconductor* ..................... 30,000 667,500 Tower Semiconductor* ........................ 26,500 574,719 VLSI Technology* ............................ 40,000 722,500 Xilinx* ..................................... 20,000 607,500 Zycon ....................................... 15,000 170,625 ----------- 8,944,469 ----------- SEMICONDUCTOR CAPITAL EQUIPMENT -- 23.7% Amtel ....................................... 30,000 667,500 Applied Materials ........................... 17,000 668,312 Asyst Technologies .......................... 20,000 707,500 Credence Systems* ........................... 25,000 568,750 Electro Scientific* ......................... 25,000 721,875 Electroglas* ................................ 30,000 757,500 Fusion Systems* ............................. 2,000 55,500 Information Storage Devices* ................ 35,000 385,000 KLA Instruments* ............................ 25,000 653,125 Lam Research* ............................... 16,000 730,000 Novellus Systems* ........................... 13,000 703,625 Silicon Valley Group* ....................... 25,000 632,813 Tencor Instruments* ......................... 27,000 658,125 Teradyne* ................................... 30,000 750,000 Varian Associates ........................... 10,000 477,500 ----------- 9,137,125 ----------- Total Common Stocks (Cost $41,365,744) ...... 37,526,656 Short-Term Holdings -- 2.6% (Cost $1,000,000) 1,000,000 ----------- Total Investments -- 100.2% (Cost $42,365,744) 38,526,656 Other Assets Less Liabilities -- (0.2)% ..... (84,563) ----------- Net Assets -- 100.0% ........................ $38,442,093 =========== - ---------- * Non-income producing security. See notes to financial statements. -- P-18 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN FIXED INCOME SECURITIES PORTFOLIO Principal Amount Value ------ ----- U.S. GOVERNMENT SECURITIES AND AGENCIES -- 49.7% U.S. GOVERNMENT SECURITIES -- 36.0% (Cost $1,411,772) U.S. Treasury Bonds 8 7/8%, 2/15/2019 ....... $ 1,200,000 $ 1,619,250 ----------- U.S. GOVERNMENT AGENCIES -- 13.7% Government National Mortgage Association: 10%, 12/15/2020+ ......................... 288,116 316,748 7 1/2%, 6/15/2023+ ....................... 291,440 300,001 ----------- Total U.S. Government Agencies (Cost $583,506) 616,749 ----------- Total U.S. Government Securities and Agencies (Cost $1,995,278) ......................... 2,235,999 ----------- CORPORATE BONDS -- 32.3% AEGON N.V. 8%, 8/15/2006 .................... 150,000 169,296 American Home 7.90%, 2/15/2005 .............. 150,000 169,029 Capital One Bank 8 1/8%, 3/1/2000 ........... 150,000 161,535 First Union 6.55%, 10/15/2035 ............... 200,000 206,979 First USA Bank 5 3/4%, 1/15/1999 ............ 100,000 99,565 General Motors Acceptance 5 5/8%, 2/1/1999 .. 150,000 149,692 Golden West Financial 6.70%, 7/1/2002 ....... 150,000 154,454 News America Holdings 8 1/4%, 8/10/2018 ..... 150,000 164,067 United Telecommunications 9 1/2%, 4/1/2003 .. 150,000 178,041 ----------- Total Corporate Bonds (Cost $1,338,167) ..... 1,452,658 ----------- REPURCHASE AGREEMENTS -- 11.1% (Cost $500,000) HSBC Securities, Inc. 5%, maturing 1/2/1996 collateralized by: $495,000 U.S. Treasury Notes 6 1/8%, 7/31/1996, with a fair market value of $509,761 ...... 500,000 500,000 ----------- Total Investments -- 93.1% (Cost $3,833,445). 4,188,657 Other Assets Less Liabilities -- 6.9% ....... 307,891 ----------- Net Assets -- 100.0% ........................ $ 4,496,548 =========== - ---------- + 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 stated maturity. This in turn may impact the ultimate yield realized from these investments. See notes to financial statements. -- P-19 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 94.8% ADVERTISING -- 1.9% DIMAC* ...................................... 2,790 $ 76,028 Heritage Media (Class A)* ................... 4,045 103,653 Katz Media Group* ........................... 3,530 62,216 ----------- 241,897 ----------- AEROSPACE/DEFENSE -- 1.2% BDM International* .......................... 5,110 148,190 ----------- APPAREL -- 0.9% St. John Knits .............................. 2,060 109,438 ----------- BROADCASTING -- 2.5% Argyle Television* .......................... 3,100 53,475 Evergreen Media (Class A)* .................. 4,800 153,600 Jacor Communications* ....................... 4,350 73,950 United Video Satellite Group (Class A)* ..... 962 26,215 ----------- 307,240 ----------- BUSINESS GOODS AND SERVICES -- 16.1% Barefoot .................................... 6,730 69,403 Bell & Howell Holdings* ..................... 4,890 136,920 BISYS Group* ................................ 4,875 148,687 Ceridian* ................................... 4,300 177,375 Corporate Express* .......................... 6,000 180,000 DST Systems* ................................ 4,400 125,400 HFS Group* .................................. 1,500 122,625 Interim Services* ........................... 2,140 74,098 Inter-Tel* .................................. 7,800 120,900 National Data ............................... 5,550 138,056 Nu-Kote Holdings (Class A)* ................. 7,200 123,300 SITEL* ...................................... 7,200 219,600 SPS Transaction Services .................... 2,570 76,136 US Office Products* ......................... 7,700 173,731 United Transnet* ............................ 8,100 124,538 ----------- 2,010,769 ----------- CAPITAL GOODS -- 4.6% The Carbide/Graphite Group* ................. 9,300 133,687 DT Industries ............................... 2,900 38,425 Fusion Systems* ............................. 1,245 34,549 Greenfield Industries ....................... 2,390 74,389 Oak Industries* ............................. 3,330 62,437 UCAR International .......................... 4,600 155,250 Wolverine Tube* ............................. 1,955 72,946 ----------- 571,683 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-20 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued) Shares Value ------ ----- COMMUNICATIONS -- 6.9% ADFlex Solutions* ........................... 4,000 $ 106,000 Arch Communications Group* .................. 5,165 124,283 Aspect Telecommunications* .................. 4,880 162,870 Cellular Communications International* ...... 180 9,022 CIDCO* ...................................... 4,880 123,830 Madge Networks* ............................. 3,939 175,532 MobileMedia (Class A)* ...................... 3,720 82,305 ProNet* ..................................... 2,470 73,019 ----------- 856,861 ----------- COMPUTER HARDWARE PERIPHERALS -- 2.3% Electronics for Imaging* .................... 2,720 117,980 Planar Systems* ............................. 9,010 172,316 ----------- 290,296 ----------- COMPUTER SOFTWARE AND SERVICES -- 7.6% Amisys Managed Care Systems* ................ 20,000 382,500 Mentor Graphics* ............................ 6,780 122,888 Netmanage* .................................. 6,110 141,294 Oak Technology* ............................. 500 21,312 SunGard Data Systems* ....................... 3,600 101,250 Synopsys* ................................... 4,840 184,525 ----------- 953,769 ----------- CONSUMER GOODS AND SERVICES -- 4.7% Buckeye Cellulose* .......................... 7,100 156,200 Central Parking ............................. 4,000 115,000 Oakley* ..................................... 5,700 193,800 ThermoLase* ................................. 4,500 116,437 ----------- 581,437 ----------- DRUGS AND HEALTH CARE -- 9.8% AmeriSource Health* ......................... 3,630 119,790 Clintrials Research* ........................ 3,730 75,532 Community Psychiatric Centers ............... 8,885 108,841 National Surgery Centers* ................... 2,200 50,050 Omnicare .................................... 4,200 187,950 Parexel International* ...................... 9,000 306,000 Protein Design Labs* ........................ 3,050 70,150 Total Renal Care Holdings* .................. 6,400 188,800 Vivra* ...................................... 4,800 120,600 ----------- 1,227,713 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-21 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued) Shares Value ------ ----- ELECTRONICS -- 16.2% Cognex* ..................................... 9,060 $ 317,100 Credence Systems* ........................... 5,640 128,310 Cypress Semiconductor* ...................... 10,900 138,975 Electro Scientific Industries* .............. 4,330 125,029 Electroglas* ................................ 5,620 141,905 Information Storage Devices* ................ 8,400 92,400 Lam Research* ............................... 3,960 180,675 Lattice Semiconductor* ...................... 3,170 103,619 Microchip Technology* ....................... 3,000 109,875 Sanmina* .................................... 3,270 170,040 Semitool* ................................... 1,400 18,113 Silicon Valley Group* ....................... 1,000 25,313 Tencor Instruments* ......................... 4,600 112,125 Ultratech Stepper* .......................... 3,100 79,825 Vicor * ..................................... 8,760 174,105 Xilinx* ..................................... 2,200 66,825 Zilog* ...................................... 1,000 36,625 ----------- 2,020,859 ----------- FARM EQUIPMENT -- 0.7% AGCO ........................................ 1,710 87,210 ----------- FINANCIAL SERVICES -- 5.9% Commerce Bancorp ............................ 2,500 55,156 First Investors Financial Services Group* ... 3,900 32,175 First Savings Bank of Washington* ........... 3,700 48,562 Flushing Financial* ......................... 3,300 50,325 GCR Holdings* ............................... 2,600 58,175 Jayhawk Acceptance* ......................... 8,300 77,813 Klamath First Bancorp* ...................... 3,500 47,469 Leasing Solutions* .......................... 3,900 58,988 T. Rowe Price ............................... 2,425 118,825 Roosevelt Financial Group ................... 7,300 140,525 Statewide Financial* ........................ 3,800 49,400 ----------- 737,413 ----------- FOOD AND BEVERAGES -- 0.6% Canandaigua Wine (Class A)* ................. 2,175 71,231 ----------- GAMING -- 0.9% GTECH Holdings* ............................. 4,200 109,200 ----------- INSURANCE -- 1.4% Capmac Holdings* ............................ 500 12,562 First Commonwealth * ........................ 6,200 159,650 ----------- 172,212 ----------- MEDICAL PRODUCTS AND TECHNOLOGY -- 2.1% Dentsply International ...................... 4,485 179,120 Sybron International* ....................... 3,280 77,900 ----------- 257,020 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-22 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- OIL AND GAS -- 1.9% Falcon Drilling* ............................ 7,200 shs. $ 106,650 Pogo Producing .............................. 4,510 127,408 ----------- 234,058 ----------- RESTAURANTS -- 1.3% Consolidated Products* ...................... 2,411 36,014 Longhorn Steaks* ............................ 7,000 126,875 ----------- 162,889 ----------- RETAIL TRADE -- 0.9% Casey's General Store ....................... 5,295 115,497 ----------- SPECIALTY CHEMICALS -- 1.7% Minerals Technologies ....................... 3,700 135,050 Sealed Air* ................................. 2,780 78,188 ----------- 213,238 ----------- TRANSPORTATION -- 0.8% Eagle USA Airfreight* ....................... 4,000 104,500 ----------- UTILITIES -- 1.9% California Energy* .......................... 12,060 235,170 ----------- Total Common Stocks (Cost $11,329,213) ...... 11,819,790 REPURCHASE AGREEMENTS -- 12.0% (Cost $1,500,000) HSBC Securities, Inc. 5%, maturing 1/3/1996 collateralized by: $1,480,000 U.S. Treasury Notes 6 7/8%, 3/31/1997 with a fair market value of $1,532,677 ............................. $ 1,500,000 1,500,000 ----------- Total Investments -- 106.8% (Cost $12,829,213) ........................ 13,319,790 Other Assets Less Liabilities -- (6.8)% ..... (843,679) ----------- Net Assets -- 100.0% ........................ $12,476,111 =========== SELIGMAN HENDERSON GLOBAL PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 93.5% BANKING -- 9.8% Banco de Santander (Spain) .................. 1,279 $ 64,000 Deutsche Bank (Germany) ..................... 962 45,605 Malayan Banking (Malaysia) .................. 3,500 29,500 Royal Bank of Scotland (UK) ................. 5,500 50,016 Siam Commercial Bank (Thailand) ............. 3,100 40,857 Societe Generale (France) ................... 556 68,558 Sumitomo Trust Banking (Japan) .............. 4,000 56,425 United Overseas Bank (Singapore) ............ 5,684 54,662 ----------- 409,623 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-23 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued) Shares Value ------ ----- BUILDING MATERIALS -- 2.7% LaFarge Coppee (France) ..................... 855 $ 54,946 Siam Cement (Thailand) ...................... 700 38,793 Uralita (Spain) ............................. 2,134 19,288 ----------- 113,027 ----------- CHEMICALS -- 2.8% Bayer (Germany) ............................. 206 54,608 Norsk Hydro (Norway) ........................ 1,006 42,208 Toyo Ink Manufacturing (Japan) .............. 4,000 19,710 ----------- 116,526 ----------- CONSUMER PRODUCTS -- 5.2% CSK (Japan) ................................. 2,000 62,415 KAO (Japan) ................................. 3,000 37,101 Nestle (Switzerland) ........................ 54 59,709 Unilever (UK) ............................... 2,900 59,540 ----------- 218,765 ----------- DRUGS AND HEALTH CARE -- 1.3% Roche Holdings (Switzerland) ................ 7 55,351 ----------- ELECTRONICS -- 8.6% Farnell Electronics (UK) .................... 4,300 47,979 Olivetti (Italy) ............................ 43,461 34,840 Pioneer Electronics (Japan) ................. 6,000 109,565 Samsung Electronics+ (South Korea) .......... 1,000 58,250 Toshiba (Japan) ............................. 14,000 109,430 ----------- 360,064 ----------- ENGINEERING -- 0.6% Siebe (UK) .................................. 2,000 24,643 ----------- FINANCE AND INSURANCE -- 8.3% Assicurazione Generali (Italy) .............. 2,513 60,847 AXA (France) ................................ 936 62,953 Internationale Nederlanden Group (Netherlands) 966 64,400 Mitsui Marine & Fire (Japan) ................ 8,000 56,889 Nomura Securities (Japan) ................... 2,000 43,478 Zurich Versicherung (Switzerland) ........... 193 57,699 ----------- 346,266 ----------- INDUSTRIAL GOODS & SERVICES -- 3.1% BBC Brown Boveri (Switzerland) .............. 55 63,865 Cie Generale des Eaux (France) .............. 652 64,967 ----------- 128,832 ----------- LEISURE AND HOTELS -- 1.4% Granada Group (UK) .......................... 6,000 60,057 ----------- - ---------- + Rule 144A security. See notes to financial statements. -- P-24 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued) Shares Value ------ ----- MANUFACTURING -- 5.7% Adidas (Germany) ............................ 589 $ 31,080 Caradon (UK) ................................ 10,000 30,339 FKI Babcock (UK) ............................ 16,125 41,289 Gadjah Tunggal (Indonesia) .................. 76,000 42,795 Tokyo Steel Manufacturing (Japan) ........... 1,000 18,357 Yamaha (Japan) .............................. 4,000 71,884 ----------- 235,744 ----------- MEDIA -- 5.5% News Corp. (Australia) ...................... 7,204 38,419 Nippon Television Network (Japan) ........... 110 29,333 Reed Elsevier (Netherlands) ................. 4,660 62,017 Reuters Holdings (UK) ....................... 5,000 45,780 WPP Group (UK) .............................. 22,000 55,991 ----------- 231,540 ----------- METALS -- 3.7% Hindalco Industries (GDRs) (India) .......... 500 17,000 Mitsubishi Materials (Japan) ................ 11,000 56,860 Sumitomo Metal Industries (Japan) ........... 21,000 63,507 Sumitomo Sitix (Japan) ...................... 1,000 18,164 ----------- 155,531 ----------- PAPER AND PACKAGING -- 1.1% Stora Kopparbergs (Sweden) .................. 3,854 46,152 ----------- RESOURCES -- 5.4% British Petroleum (UK) ...................... 5,700 47,678 Broken Hill Proprietary (Australia) ......... 4,861 68,600 ELF Aquitaine (France) ...................... 784 57,652 MIM Holdings (Australia) .................... 16,384 22,635 YPF Sociedad Anomima (ADRs) (Argentina) ..... 1,400 30,275 ----------- 226,840 ----------- RESTAURANTS -- 0.8% Denny's (Japan) ............................. 1,000 33,333 ----------- RETAILING -- 5.5% Aoyama Trading (Japan) ...................... 600 19,130 Carrefour Supermarche (France) .............. 85 51,469 Joshin Denki (Japan) ........................ 2,000 26,087 Karstadt (Germany) .......................... 101 41,342 Tesco (UK) .................................. 14,300 65,909 Tsutsumi Jewelry (Japan) .................... 500 24,976 ----------- 228,913 ----------- - ---------- See notes to financial statements. -- P-25 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- SHIPBUILDING -- 2.2% Jurong Shipyard (Singapore) ................. 9,000 shs. $ 69,363 Kvaerner Industries (Norway) ................ 713 23,842 ----------- 93,205 ----------- SUPPORT SERVICES -- 0.7% Rentokil (UK) ............................... 5,900 30,672 ----------- TELECOMMUNICATIONS -- 7.1% Grupo Carso (ADRs)*+ (Mexico) ............... 1,000 10,669 Hong Kong Telecommunications (Hong Kong) .... 29,400 52,470 L.M. Ericsson (Series B) (Sweden) ........... 3,040 59,529 Nippon Telegraph & Telephone (Japan) ........ 15 121,015 Tele Danmark (Series B) (Denmark) ........... 1,004 54,695 ----------- 298,378 ----------- TOBACCO -- 1.6% B.A.T. Industries (UK) ...................... 7,500 66,050 ----------- TRANSPORTATION -- 8.0% East Japan Railway (Japan) .................. 25 121,256 Lufthansa (Germany) ......................... 365 50,437 Mitsui O.S.K. Lines (Japan) ................. 20,000 63,961 Perusahaan Otomobil Nasional (Malaysia) ..... 10,000 35,250 Swire Pacific (Hong Kong) ................... 8,000 62,076 ----------- 332,980 ----------- UTILITIES -- 0.8% Iberdrola (Spain) ........................... 3,486 31,794 ----------- MISCELLANEOUS -- 1.6% Roussel (France) ............................ 383 64,790 ----------- Total Common Stocks (Cost $3,661,623) ....... 3,909,076 ----------- CONVERTIBLE BONDS -- 1.0% ELECTRONICS -- 0.4% Teco Electronics & Machinery (Taiwan) 2 3/4%, 4/15/2004 ................................... $ 20,000 15,675 ----------- MANUFACTURING -- 0.6% Gujurat Ambuja Cement (India) 3 1/2%, 6/30/1999 20,000 26,900 ----------- Total Convertible Bonds (Cost $43,724) ...... 42,575 ----------- Total Investments -- 94.5% (Cost $3,705,347). 3,951,651 Other Assets Less Liabilities -- 5.5% ....... 231,578 ----------- Net Assets -- 100.0% ........................ $ 4,183,229 =========== - ---------- * Non-income producing security. + Rule 144A security. See notes to financial statements. -- P-26 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO Shares Value ------ ----- COMMON STOCKS -- 91.5% ADVERTISING -- 1.4% DIMAC* (US) ................................. 965 $ 26,296 Heritage Media (Class A)* (US) .............. 1,140 29,213 Katz Media Group* (US) ...................... 800 14,100 ----------- 69,609 ----------- AUTOMOTIVE PARTS MANUFACTURING -- 5.1% Forsheda (Sweden) ........................... 3,458 54,692 Industria Macchine Auto (Italy) ............. 300 2,021 Kiekert* (Germany) .......................... 700 41,664 Montupet (France) ........................... 439 48,316 Nokian Tyres* (Finland) ..................... 5,000 50,487 Sylea (France) .............................. 655 47,257 ----------- 244,437 ----------- BUILDING MATERIALS -- 1.3% Mulia Industrindo (Indonesia) ............... 8,000 22,567 Polypipe (UK) ............................... 15,000 40,736 ----------- 63,303 ----------- BUSINESS SERVICES -- 3.1% BISYS Group* (US) ........................... 1,000 30,500 Fujitsu Business Systems (Japan) ............ 1,000 26,280 International Business Communications Holdings (UK) ............................. 7,000 31,068 Nu-Kote Holdings (Class A)*(US) ............. 1,690 28,941 SunGard Data Systems*(US) ................... 1,160 32,625 ----------- 149,414 ----------- CAPITAL GOODS -- 1.5% Fusion Systems* (US) ........................ 800 22,200 Stayer Group* (Italy) ....................... 13,320 21,809 Tsubakimoto Precision (Japan) ............... 2,000 27,633 ----------- 71,642 ----------- CHEMICALS -- 1.0% Chemical Company of Malaysia (Malaysia) ..... 3,000 5,967 Dalloz* (France) ............................ 53 11,018 Toshiba Chemical (Japan) .................... 1,000 8,271 Toyo Ink Manufacturing (Japan) .............. 5,000 24,638 ----------- 49,894 ----------- COMMERCIAL SERVICES -- 0.4% Skilled Engineering (Australia) ............. 7,000 17,781 ----------- COMPUTER SOFTWARE -- 1.0% Dendrite International* (US) ................ 900 16,425 Synopsys* (US) .............................. 870 33,169 ----------- 49,594 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-27 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value ------ ----- CONSTRUCTION AND PROPERTY -- 6.8% Asas Dunia Berhad (Malaysia) ................ 2,000 $ 5,672 Ashstead Group (UK) ......................... 15,000 40,271 Bau Holdings (Austria) ...................... 1,380 51,746 Bukit Sembawang Estates (Singapore) ......... 1,000 21,919 Danske Traelastkompagni (Denmark) ........... 993 66,950 Higashi Nihon House (Japan) ................. 2,000 32,850 Mitsui Home (Japan) ......................... 2,000 31,884 New Asia Realty ( Hong Kong) ................ 9,000 17,226 Ruberoid (UK) ............................... 13,000 28,848 Tilbury Douglas (UK) ........................ 4,500 31,075 ----------- 328,441 ----------- CONSUMER GOODS AND SERVICES -- 5.6% Apcoa Parking* (Germany) .................... 675 44,217 Canandaigua Wine (Class A)* (US) ............ 1,215 39,791 Central Parking* (US) ....................... 1,000 28,750 Oakley* (US) ................................ 2,000 68,000 Rentsch, Walter Holdings (Switzerland) ...... 67 10,915 St. John Knits (US) ......................... 450 23,906 SITEL* (US) ................................. 1,500 45,750 Sorini (Indonesia) .......................... 2,000 10,103 ----------- 271,432 ----------- DRUGS AND HEALTH CARE -- 2.4% Darya-Varia Lab (Indonesia) ................. 5,000 9,102 Horizon Mental Health Management (US) ....... 1,800 29,925 Parexel International* (US) ................. 1,000 34,000 Protein Design Lab* (US) .................... 1,840 42,320 ----------- 115,347 ----------- ELECTRICAL DISTRIBUTION -- 0.7% Trifast (UK) ................................ 5,600 32,762 ----------- ELECTRONICS -- 5.7% Credence Systems* (US) ...................... 1,325 30,144 Electro Scientific Industries* (US) ......... 1,890 54,574 Enplas (Japan) .............................. 1,000 18,647 Horiba Instruments (Japan) .................. 2,000 25,894 ISA International (UK) ...................... 16,500 39,176 Lem Holdings (Switzerland) .................. 67 23,630 Otra N.V. (Netherlands) ..................... 3,640 64,515 Sanmina* (US) ............................... 340 17,680 ----------- 274,260 ----------- FINANCIAL SERVICES -- 4.6% Finnveden (Series B)* (Sweden) .............. 3,250 33,289 Fokus Bank (Norway) ......................... 6,500 35,064 Ichiyoshi Securities (Japan) ................ 4,000 27,053 Manhattan Card (Hong Kong) .................. 60,500 25,820 - ---------- * Non-income producing security. See notes to financial statements. -- P-28 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value ------ ----- FINANCIAL SERVICES (continued) Jayhawk Acceptance* (US) .................... 3,200 $ 30,000 T. Rowe Price (US) .......................... 340 16,660 Roosevelt Financial Group (US) .............. 2,400 46,200 World Acceptance* (US) ...................... 900 9,844 ----------- 223,930 ----------- GAMING -- 0.7% Grand Casinos (US) .......................... 600 13,988 GTECH Holdings* (US) ........................ 700 18,200 ----------- 32,188 ----------- INDUSTRIAL GOODS & SERVICES -- 1.1% Angpanneforeningen (Class B) (Sweden) ....... 3,550 54,009 ----------- MANUFACTURING -- 13.9% AGCO (US) ................................... 400 20,400 Asahi Diamond Industries (Japan) ............ 2,000 28,019 Danto (Japan) ............................... 2,200 27,208 David Brown Group (UK) ...................... 9,357 28,606 Dominick Hunter (UK) ........................ 9,300 47,049 Equipments et Composants pour l'Industrie Automobile (France) ....................... 380 40,118 Futuris (Australia) ......................... 20,000 19,609 Glory Kogyo (Japan) ......................... 1,000 36,715 Hokushin (Japan) ............................ 2,000 23,768 Iro* (Sweden) ............................... 4,700 53,097 Kalmar Industries (Sweden) .................. 3,563 59,037 Namura Shipbuilding (Japan) ................. 5,000 27,536 Nichicon (Japan) ............................ 2,000 29,372 Opta Food Ingredients (US) .................. 3,700 46,712 Plettac (Germany) ........................... 240 59,311 Sodick (Japan) .............................. 3,000 28,116 Stoves* (UK) ................................ 5,000 20,174 Tsudakoma (Japan) ........................... 4,000 25,121 Wellington Holdings (UK) .................... 9,000 34,637 Yue Yuen Industrial Holdings (Hong Kong) .... 64,000 16,967 ----------- 671,572 ----------- MEDIA -- 1.7% Capital Radio (UK) .......................... 4,500 37,221 Hodder Headline (UK) ........................ 2,700 10,559 Nippon Television Network (Japan) ........... 1,000 11,981 Sistem Televisyen of Malaysia (Malaysia) .... 3,000 10,811 United Video Satellite Group (Class A)* (US) 445 12,126 ----------- 82,698 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-29 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value ------ ----- MEDICAL PRODUCTS AND TECHNOLOGY -- 2.6% Hitachi Medical (Japan) ..................... 2,000 $ 28,599 IDX Systems (US) ............................ 800 27,700 Norland Medical Systems (US) ................ 2,000 45,750 Summit Medical Systems* (US) ................ 1,000 21,250 ----------- 123,299 ----------- METALS -- 1.4% Nakayama Steel Works (Japan) ................ 4,000 21,952 Sanyo Special Steel (Japan) ................. 6,000 25,971 Sumitomo Sitix (Japan) ...................... 1,000 18,164 ----------- 66,087 ----------- PAPER AND PACKAGING -- 2.6% Applied Extrusion Technology (US) ........... 3,500 44,188 Bobst AG (Switzerland) ...................... 6 9,359 Rengo (Japan) ............................... 5,000 33,333 Wace Group (UK) ............................. 10,000 38,020 ----------- 124,900 ----------- RESOURCES -- 1.6% California Energy (US) ...................... 2,500 48,750 Nittetsu Mining (Japan) ..................... 3,000 29,855 ----------- 78,605 ----------- RESTAURANTS -- 2.7% Aiya (Japan) ................................ 2,000 25,121 Kentucky Fried Chicken (Japan) .............. 2,000 32,850 Pizza Express (UK) .......................... 11,500 38,726 Sagami Chain (Japan) ........................ 2,000 33,043 ----------- 129,740 ----------- RETAILING -- 8.2% Courts (Singapore) .......................... 11,000 16,800 Fotolabo Club (Switzerland) ................. 175 69,757 Frost Group (UK) ............................ 9,000 27,235 Hamleys (UK) ................................ 6,500 35,204 Hornbach Baumarkt (Germany) ................. 1,530 65,716 Jardine International Motor Holdings (Hong Kong) 16,000 18,209 Jean Pascale (Germany) ...................... 1,612 48,927 Pet City (UK) ............................... 5,100 30,233 Tsutsumi Jewelry (Japan) .................... 1,000 49,952 Xebio (Japan) ............................... 1,000 35,266 ----------- 397,299 ----------- SUPPORT SERVICES -- 1.9% COREstaff* (US) ............................. 2,500 92,188 ----------- - ---------- * Non-income producing security. See notes to financial statements. -- P-30 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- TECHNOLOGY -- 5.1% Amisys Managed Care Systems* (US) ........... 5,000 shs. $ 95,625 Asyst Technologies* (US) .................... 800 28,300 Electronics for Imaging* (US) ............... 940 40,773 Learning Tree International (US) ............ 2,500 39,375 Opal (US) ................................... 2,500 32,500 Photon Dynamics* (US) ....................... 1,500 11,813 ----------- 248,386 ----------- TELECOMMUNICATIONS -- 1.0% Arch Communications Group* (US) ............. 1,100 26,469 Loxley (Thailand) ........................... 1,000 20,326 ----------- 46,795 ----------- TRANSPORTATION -- 2.4% Comfort Group (Singapore) ................... 20,000 16,970 Eagle USA Airfreight* (US) .................. 3,000 78,375 Iino Kaiun* (Japan) ......................... 4,000 22,725 ----------- 118,070 ----------- MISCELLANEOUS -- 4.0% BT Industries (Sweden) ...................... 5,000 54,227 BUT (France) ................................ 210 11,342 Technip* (France) ........................... 923 63,395 Thorkild Kristensen (Denmark) ............... 1,252 66,779 ----------- 195,743 ----------- Total Common Stocks (Cost $4,264,531)........ 4,423,425 ----------- CONVERTIBLE BONDS -- 0.1% (Cost $6,313) MANUFACTURING -- 0.1% Gujurat Ambuja Cement (India) 3 1/2%, 6/30/1999 ......................... $ 5,000 6,725 ----------- Total Investments -- 91.6% (Cost $4,270,844). 4,430,150 Other Assets Less Liabilities -- 8.4% ....... 406,466 ----------- Net Assets -- 100.0% ........................ $ 4,836,616 =========== - ---------- * Non-income producing security. See notes to financial statements. -- P-31 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO Principal Amount Value ------ ----- CORPORATE BONDS -- 91.2% BROADCASTING -- 0.2% Allbritton Communications 1 1/2%, 8/15/2004 . $ 7,000 $ 7,394 ----------- CABLE SYSTEMS -- 14.9% Comcast 10 5/8%, 7/15/2012 .................. 100,000 113,375 Le Groupe Videotron Ltee 10 5/8%, 2/15/2005.. 100,000 107,125 People's Choice Television 0% (13 1/8%**), 6/1/2004 .................. 100,000 57,750 Rogers Cable Systems 11%, 12/1/2015 ......... 100,000 108,000 United International 0% (14%#), 11/15/1999 .. 100,000 62,500 ----------- 448,750 ----------- CELLULAR -- 3.5% Centennial Cellular 10 1/8%, 5/15/2005 ...... 100,000 105,250 ----------- CHEMICALS -- 3.6% Arcadian Partners 10 3/4%, 5/1/2005 ........ 50,000 55,250 NL Industries 11 3/4%, 10/15/2003 ........... 50,000 53,625 ----------- 108,875 ----------- CONSUMER PRODUCTS -- 3.5% Williamhouse-Regency 13%, 11/15/2005+ ....... 100,000 105,500 ----------- ENERGY--7.0% TransTexas Gas 11 1/2%, 6/15/2002 ........... 100,000 103,750 United Meridian 10 3/8%, 10/15/2005 ......... 100,000 106,250 ----------- 210,000 ----------- FINANCIAL SERVICES -- 2.7% Olympic Financial 13%, 5/1/2000 ............. 75,000 82,125 ----------- GAMING/HOTEL -- 14.1% Aztar 11%, 10/1/2002 ........................ 50,000 50,125 Casino Magic Finance 11 1/2%, 10/15/2001 .... 75,000 64,875 Grand Casinos 10 1/8%, 12/1/2003 ............ 50,000 52,375 Stratosphere 14 1/4%, 5/15/2002 ............. 50,000 56,750 Trump Hotels & Casino Resorts Funding 15 1/2%, 6/15/2005 ........................ 50,000 53,750 Trump Plaza Funding 10 7/8%, 6/15/2001 ...... 50,000 52,000 Trump Taj Mahal 11.35%, 11/15/1999 .......... 100,000 95,113 ----------- 424,988 ----------- HEALTH CARE -- 4.1% Dade International 13%, 2/1/2005 ............ 20,000 22,400 Regency Health Services 9 7/8%, 10/15/2002 .. 100,000 99,750 ----------- 122,150 ----------- - ---------- + Rule 144A security. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. # Represents effective yield on zero coupon bond. See notes to financial statements. -- P-32 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value ------ ----- LEISURE -- 3.4% Premier Parks 12%, 8/15/2003 ................ $ 100,000 $ 103,000 ----------- MANUFACTURING -- 3.4% Howmet 10%, 12/1/2003+ ...................... 50,000 52,750 RBX 11 1/4%, 10/15/2005+ .................... 50,000 49,250 ----------- 102,000 ----------- PAGING -- 6.3% Metrocall 10 3/8%, 10/1/2007 ................ 100,000 106,500 ProNet 11 7/8%, 6/15/2005 ................... 75,000 82,875 ----------- 189,375 ----------- RETAILING -- 2.1% Thrifty Payless 11 3/4%, 4/15/2003 .......... 10,000 10,875 Thrifty Payless 12 1/4%, 4/15/2004 .......... 50,000 53,750 ----------- 64,625 ----------- SUPERMARKETS -- 5.1% Pathmark Stores 11 5/8%, 6/15/2002 .......... 100,000 101,000 Ralph's Grocery 10.45%, 6/15/2004 ........... 50,000 50,875 ----------- 151,875 ----------- TELECOMMUNICATIONS -- 10.8% Fonorola 12 1/2%, 8/15/2002 ................. 100,000 105,500 IXC Communications 13%, 10/1/2005+ .......... 100,000 106,500 Mobile Telecommunication Technologies 13 1/2%, 12/15/2002 ....................... 100,000 111,500 ----------- 323,500 ----------- THEATRES -- 3.0% Plitt Theatres 10 7/8%, 6/15/2004 ........... 100,000 90,500 ----------- UTILITIES -- 3.5% Midland Cogeneration Venture 11 3/4%, 7/23/2005 100,000 105,257 ----------- Total Corporate Bonds -- (Cost $2,681,011) .. 2,745,164 ----------- CONVERTIBLE BONDS -- 3.0% COMPUTERS AND RELATED SERVICES -- 1.6% EMC 4 1/4%, 1/1/2001 ........................ 50,000 49,750 ----------- SEMICONDUCTORS -- 1.4% Integrated Device Technologies 5 1/2%, 6/1/2002 50,000 41,125 ----------- Total Convertible Bonds (Cost $97,640) ...... 90,875 ----------- Total Investments -- 94.2% (Cost $2,778,651). 2,836,039 Other Assets Less Liabilitie s -- 5.8% ...... 173,383 ----------- Net Assets -- 100.0% ......................... $ 3,009,422 =========== - ---------- + Rule 144A security. See notes to financial statements. -- P-33 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO Principal Amount Value ------ ----- CONVERTIBLE SECURITIES -- 41.0% SUBORDINATED CONVERTIBLE BONDS -- 23.9% CONSUMER GOODS AND SERVICES -- 2.4% Unifi 6%, 3/15/2002 ......................... $ 300,000 $ 302,250 ----------- DRUGS AND HEALTH CARE -- 1.7% Pharmaceutical Marketing Services 6 1/4%, 2/1/2003+ ........................... 235,000 211,500 ----------- ELECTRONICS -- 1.4% Micropolis 6%, 3/15/2012 .................... 350,000 173,250 ----------- ENERGY -- 3.8% Kelley Oil & Gas 8 1/2%, 4/1/2000 ........... 285,000 159,244 Sante Fe Pipelines 11.162%, 8/15/2010 ....... 250,000 316,875 ----------- 476,119 ----------- ENTERTAINMENT/PUBLISHING -- 0.6% Time Warner 8 1/4%, 1/10/2015 ............... 76,750 79,436 ----------- INSURANCE -- 1.9% Trenwick Group 6%, 12/15/1999 ............... 200,000 236,000 ----------- MACHINERY -- 1.6% Cooper Industries 7.05%, 1/1/2015 ........... 200,000 207,000 ----------- RETAILING -- 1.4% CML Group 5 1/2%, 1/15/2003 ................. 250,000 181,250 ----------- TECHNOLOGY -- 1.6% EMC 4 1/4%, 1/1/2001 ........................ 200,000 199,000 ----------- TELECOMMUNICATIONS -- 3.3% LDDS Communications 5%, 8/15/2003 ........... 250,000 263,750 Network Equipment 7 1/4%, 5/15/2014 ......... 147,000 153,431 ----------- 417,181 ----------- TRANSPORTATION -- 0.8% Airborne Freight 6 3/4%, 8/15/2001 .......... 100,000 100,500 ----------- MISCELLANEOUS/DIVERSIFIED -- 3.4% MascoTech 4 1/2%,12/15/2003 ................. 300,000 234,750 TriMas 5%, 8/1/2003 ......................... 200,000 196,000 ----------- 430,750 ----------- Total Subordinated Convertible Bonds (Cost $3,129,412) ........................... 3,014,236 ----------- - ---------- + Rule 144A security. See notes to financial statements. -- P-34 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Shares or Principal Amount Value ------ ----- CONVERTIBLE PREFERRED STOCKS -- 17.1% BANKING AND FINANCE -- 2.1% National City $4.00 ......................... 3,300 shs. $ 259,875 ----------- ENERGY -- 2.5% Snyder Oil (Class A) 6% ..................... 5,000 98,750 Unocal $3.50+ ............................... 4,000 214,500 ----------- 313,250 ----------- INSURANCE -- 4.4% Alexander & Alexander (Series A) $3.625+ .... 1,500 74,812 American General (Series A) $3.00 ........... 4,500 235,688 St. Paul Capital 6% ......................... 4,500 253,125 ----------- 563,625 ----------- PAPER -- 1.1% International Paper Capital 5 1/4%+ ......... 3,000 136,125 ----------- RETAILING -- 0.7% TJX $3.125 .................................. 2,000 89,500 ----------- TELECOMMUNICATIONS -- 1.6% Mobile Telecommunication Technologies $2.25+ 6,500 208,000 ----------- TRANSPORTATION -- 4.0% GATX $3.875 ................................. 5,000 287,500 Sea Containers $4.00 ........................ 5,000 218,750 ----------- 506,250 ----------- MISCELLANEOUS -- 0.7% Corning (Delaware) 6% ....................... 1,700 85,638 ----------- Total Convertible Preferred Stocks (Cost $2,143,676) ........................... 2,162,263 ----------- Total Convertible Securities (Cost $5,273,088) 5,176,499 ----------- CORPORATE BONDS -- 20.4% AUTOMOTIVE -- 5.7% Chrysler Financial 6 1/2%, 6/15/1998 ........ $ 200,000 203,392 Ford Motor Credit 6 3/4%, 8/15/2008 ......... 250,000 258,437 General Motors Acceptance 5 1/4%, 2/1/1999... 250,000 249,486 ----------- 711,315 ----------- BANKING AND FINANCE -- 6.9% Capital One Bank 8 1/8%, 3/1/2000 ........... 250,000 269,225 First USA Bank 5 3/4%, 1/15/1999 ............ 100,000 99,565 MBNA 6.15%, 10/1/2003 ....................... 500,000 498,158 ----------- 866,948 ----------- INSURANCE -- 2.2% AEGON N.V. 8%, 8/15/2006 .................... 250,000 282,160 ----------- TELECOMMUNICATIONS -- 3.3% United Telecommunications 9 1/2%, 4/1/2003... 350,000 415,430 ----------- - ---------- + Rule 144A security. See notes to financial statements. -- P-35 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) December 31, 1995 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Principal Amount or Shares Value --------- ----- MISCELLANEOUS -- 2.3% Tenneco Credit 9 5/8%, 8/15/2001 ............ $ 250,000 $ 290,565 ----------- Total Corporate Bonds (Cost $2,438,843) ..... 2,566,418 ----------- COMMON STOCKS -- 16.1% ELECTRIC AND GAS UTILITIES -- 5.0% Atlanta Gas and Light ....................... 6,000 shs. 118,500 CINergy ..................................... 9,718 297,614 Entergy ..................................... 2,600 76,050 FPL Group ................................... 3,000 139,125 ----------- 631,289 ----------- FOOD -- 2.7% ConAgra ..................................... 8,141 335,807 ----------- INSURANCE -- 0.5% GCR Holdings ................................ 3,000 67,125 ----------- RETAILING -- 0.2% Kmart ....................................... 3,200 23,200 ----------- STEEL -- 1.1% Inland Steel Industries ..................... 5,406 135,826 ----------- TRANSPORTATION -- 2.4% Consolidated Freightways .................... 10,000 265,000 NFC ......................................... 20,000 44,072 ----------- 309,072 ----------- UTILITIES/TELECOMMUNICATIONS -- 4.2% Bell Atlantic ............................... 4,000 267,500 GTE ......................................... 3,000 132,000 Network Equipment Technologies .............. 4,857 132,964 ----------- 532,464 ----------- Total Common Stocks (Cost $1,596,384) ....... 2,034,783 ----------- U.S. GOVERNMENT SECURITIES -- 8.5% U.S. Treasury Notes 7 3/4%, 12/31/1999 ...... $ 500,000 542,968 U.S. Treasury Notes 6 1/2%, 5/15/2005 ....... 500,000 532,969 ----------- Total U.S. Government Securities (Cost $1,052,426) ........................... 1,075,937 ----------- REPURCHASE AGREEMENTS -- 7.9% (Cost $1,000,000) HSBC Securities, Inc. 5%, maturing 1/3/1996 collateralized by: $985,000 U.S. Treasury Notes 6 7/8%, 3/31/1997, with a fair market value of $1,020,059 ................. 1,000,000 1,000,000 ----------- Total Investments -- 93.9% (Cost $11,360,741) 11,853,637 Other Assets Less Liabilities -- 6.1% ........ 765,843 ----------- Net Assets -- 100.0% ......................... $12,619,480 =========== - ---------- See notes to financial statements. -- P-36 -- This page intentionally left blank. -- P-37 -- Seligman Portfolios, Inc.
- ----------------------------------------------------------------------------------------------------------------------------- Statements of Assets and Liabilities - ----------------------------------------------------------------------------------------------------------------------------- Seligman Seligman Seligman Seligman Seligman Cash Common Communications Fixed Income Capital Management Stock and Information Securities Portfolio Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ ------------ ASSETS: Investments, at value (see portfolios of investments): Common Stocks ............................... $ 8,852,808 $ -- $ 24,293,752 $ 37,526,656 $ -- Convertible Securities ...................... -- -- 320,000 -- -- U.S. Government Securities and Agencies ............................ -- 3,551,271 -- -- 2,235,999 Corporate Bonds ............................. -- -- -- -- 1,452,658 Bankers' Acceptances ........................ -- 198,047 -- -- -- Certificates of Deposit ..................... -- 500,013 -- -- -- Commercial Paper ............................ -- 2,924,595 -- -- -- Fixed Time Deposits ......................... -- -- -- 1,000,000 -- Repurchase Agreements ....................... 1,000,000 600,000 4,000,000 -- 500,000 ------------ ------------ ------------ ------------ ------------ Total Investments ........................... 9,852,808 7,773,926 28,613,752 38,526,656 4,188,657 Cash ........................................ 570,808 72,616 1,905,436 649,128 118,589 Receivable for securities sold .............. 157,325 -- 494,985 933,765 123,164 Receivable for Capital Stock sold ........... 49,426 -- 126,453 297,973 -- Interest and dividends receivable ........... 3,283 3,017 54,449 1,158 80,257 Receivable from associated companies ........ -- 433 -- -- 747 ------------ ------------ ------------ ------------ ------------ Total Assets ................................ 10,633,650 7,849,992 31,195,075 40,408,680 4,511,414 ------------ ------------ ------------ ------------ ------------ LIABILITIES: Payable for securities purchased ............ 1,321,967 -- 2,302,454 1,920,699 -- Payable for Capital Stock repurchased ....... 584 37,549 30,347 -- 320 Accrued expenses, taxes, and other .......... 17,583 12,932 26,229 45,888 14,546 ------------ ------------ ------------ ------------ ------------ Total Liabilities ........................... 1,340,134 50,481 2,359,030 1,966,587 14,866 ------------ ------------ ------------ ------------ ------------ NET ASSETS .................................. $ 9,293,516 $ 7,799,511 $ 28,836,045 $ 38,442,093 $ 4,496,548 ============ ============ ============ ============ ============ COMPOSITION OF NET ASSETS: Capital Stock, at par ....................... $ 623 $ 7,800 $ 1,868 $ 2,848 $ 431 Additional paid-in capital .................. 7,851,238 7,792,109 21,923,363 42,278,896 4,241,656 Undistributed (dividends in excess of) net investment income ................... (3,378) -- 2,933 (563) (3,378) Accumulated net realized gain (loss) ....... 4,578 (398) 218,698 -- (97,373) Net unrealized appreciation (depreciation) of investments ........... 1,440,455 -- 6,744,425 (3,839,088) 355,212 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies ...... -- -- (55,242) -- -- ------------ ------------ ------------ ------------ ------------ NET ASSETS .................................. $ 9,293,516 $ 7,799,511 $ 28,836,045 $ 38,442,093 $ 4,496,548 ============ ============ ============ ============ ============ Shares of Capital Stock ($.001 par value) outstanding ............ 623,294 7,799,909 1,868,083 2,848,022 430,753 ============ ============ ============ ============ ============ Net Asset Value per share ................... $ 14.91 $ 1.00 $ 15.44 $ 13.50 $ 10.44 ============ ============ ============ ============ ============
- ---------- See notes to financial statements. -- P-38 -- Seligman Portfolios, Inc.
- ----------------------------------------------------------------------------------------------------------------------------- December 31, 1995 - ----------------------------------------------------------------------------------------------------------------------------- Seligman Seligman Henderson Seligman Seligman Henderson Global Smaller High-Yield Seligman Frontier Global Companies Bond Income Portfolio Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ ------------ ASSETS: Investments, at value (see portfolios of investments): Common Stocks ............................... $ 11,819,790 $ 3,909,076 $ 4,423,425 $ -- $ 2,034,783 Convertible Securities ...................... -- 42,575 6,725 90,875 5,176,499 U.S. Government Securities and Agencies ............................ -- -- -- -- 1,075,937 Corporate Bonds ............................. -- -- -- 2,745,164 2,566,418 Bankers' Acceptances ........................ -- -- -- -- -- Certificates of Deposit ..................... -- -- -- -- -- Commercial Paper ............................ -- -- -- -- -- Fixed Time Deposits ......................... -- -- -- -- -- Repurchase Agreements ....................... 1,500,000 -- -- -- 1,000,000 ------------ ------------ ------------ ------------ ------------ Total Investments ........................... 13,319,790 3,951,651 4,430,150 2,836,039 11,853,637 Cash ........................................ 761,034 178,499 577,847 118,140 569,704 Receivable for securities sold .............. 207,174 16,857 18,418 -- -- Receivable for Capital Stock sold ........... 79,769 86,790 22,629 11,213 68,781 Interest and dividends receivable ........... 2,341 5,467 3,756 51,126 153,218 Receivable from associated companies ........ -- 1,390 3,910 3,069 -- ------------ ------------ ------------ ------------ ------------ Total Assets ................................ 14,370,108 4,240,654 5,056,710 3,019,587 12,645,340 ------------ ------------ ------------ ------------ ------------ LIABILITIES: Payable for securities purchased ............ 1,874,745 39,829 204,052 -- -- Payable for Capital Stock repurchased ....... -- -- -- -- 4,975 Accrued expenses, taxes, and other .......... 19,252 17,596 16,042 10,165 20,885 ------------ ------------ ------------ ------------ ------------ Total Liabilities ........................... 1,893,997 57,425 220,094 10,165 25,860 ------------ ------------ ------------ ------------ ------------ NET ASSETS .................................. $ 12,476,111 $ 4,183,229 $ 4,836,616 $ 3,009,422 $ 12,619,480 ============ ============ ============ ============ ============ COMPOSITION OF NET ASSETS: Capital Stock, at par ....................... $ 920 $ 338 $ 414 $ 287 $ 1,194 Additional paid-in capital .................. 11,979,541 3,930,575 4,672,140 2,952,157 12,128,778 Undistributed (dividends in excess of) net investment income ................... (563) (1,917) (563) (410) (3,378) Accumulated net realized gain (loss) ....... 6,161 -- -- -- -- Net unrealized appreciation (depreciation) of investments ........... 490,052 274,637 200,393 57,388 489,410 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies ...... (20,404) (35,768) -- 3,476 ------------ ------------ ------------ ------------ ------------ NET ASSETS .................................. $ 12,476,111 $ 4,183,229 $ 4,836,616 $ 3,009,422 $ 12,619,480 ============ ============ ============ ============ ============ Shares of Capital Stock ($.001 par value) outstanding ............ 919,934 337,685 414,437 286,688 1,194,484 ============ ============ ============ ============ ============ Net Asset Value per share ................... $ 13.56 $ 12.39 $ 11.67 $ 10.50 $ 10.56 ============ ============ ============ ============ ============
- ---------- See notes to financial statements. -- P-39 -- Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------ Statements of Operations For the year ended December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Seligman Seligman Seligman Seligman Seligman Cash Common Communications Fixed Income Capital Management Stock and Information Securities Portfolio Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ ------------ Investment income: Dividends* ............................ $ 50,339 $ -- $ 566,641 $ 6,609 $ -- Interest .............................. 15,565 251,624 132,407 3,041 260,351 ----------- ----------- ----------- ----------- ----------- Total investment income ............... 65,904 251,624 699,048 9,650 260,351 ----------- ----------- ----------- ----------- ----------- Expenses: Management fee ........................ 28,551 18,365 94,380 123,216 15,262 Auditing fee .......................... 10,267 10,267 10,267 12,517 10,267 Legal fee ............................. 3,408 3,408 3,408 3,408 3,408 Shareholder reports and communications ..................... 2,445 2,445 2,445 2,203 2,445 Directors' fees and expenses .......... 2,323 2,323 2,323 2,285 2,323 Registration .......................... 2,103 1,943 4,618 8,118 1,618 Custody and related services .......... -- -- 7,967 -- -- Miscellaneous ......................... 1,448 1,163 2,983 4,178 2,338 ----------- ----------- ----------- ----------- ----------- Total expenses before reimbursement ...................... 50,545 39,914 128,391 155,925 37,661 Reimbursement of expenses ............. (7,713) (39,914) -- -- (14,766) ----------- ----------- ----------- ----------- ----------- Total expenses after reimbursement ...................... 42,832 -- 128,391 155,925 22,895 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) .......... 23,072 251,624 570,657 (146,275) 237,456 ----------- ----------- ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments and foreign currency transactions: Net realized gain (loss) on investments 673,773 (4) 3,074,117 2,629,030 (16,342) Net realized gain (loss) from foreign currency transactions .............. -- -- (85) -- -- Net change in unrealized appreciation/ depreciation of investments ........ 996,837 -- 2,044,468 (3,857,599) 449,551 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies ............... -- -- (55,202) -- -- ----------- ----------- ----------- ----------- ----------- Net gain (loss) on investments and foreign currency transactions ....................... 1,670,610 (4) 5,063,298 (1,228,569) 433,209 ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets from operations ............. $ 1,693,682 $ 251,620 $ 5,633,955 $(1,374,844) $ 670,665 =========== =========== =========== =========== =========== - ---------- * Net of foreign tax withheld as follows: $ 69 $ -- $ 4,659 $ -- $ -- **For the period May 1, 1995 (commencement of operations) to December 31, 1995. See notes to financial statements.
-- P-40 -- Seligman Portfolios, Inc.
- ------------------------------------------------------------------------------------------------------------------ For the year ended December 31, 1995 - ------------------------------------------------------------------------------------------------------------------ Seligman Seligman Henderson Seligman Seligman Henderson Global Smaller High-Yield Seligman Frontier Global Companies Bond Income Portfolio Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ ------------ Investment income: Dividends* ............................ $ 5,811 $ 41,548 $ 15,129 $ -- $ 186,426 Interest .............................. 9,720 18,345 19,766 64,165 517,963 ----------- ----------- ----------- ----------- ----------- Total investment income ............... 15,531 59,893 34,895 64,165 704,389 ----------- ----------- ----------- ----------- ----------- Expenses: Management fee ........................ 29,219 25,312 17,210 3,941 45,797 Auditing fee .......................... 12,517 10,267 12,517 11,350 10,267 Legal fee ............................. 3,408 3,528 3,694 12,507 3,408 Shareholder reports and communications ..................... 2,203 2,203 2,203 2,203 2,445 Directors' fees and expenses .......... 2,285 2,285 2,285 1,629 2,323 Registration .......................... 3,118 2,153 2,118 1,538 2,618 Custody and related services .......... -- 31,847 21,303 25 -- Miscellaneous ......................... 819 8,511 4,685 1,237 3,762 ----------- ----------- ----------- ----------- ----------- Total expenses before reimbursement ...................... 53,569 86,106 66,015 34,430 70,620 Reimbursement of expenses ............. (16,555) (51,823) (42,122) (28,926) (1,910) ----------- ----------- ----------- ----------- ----------- Total expenses after reimbursement ...................... 37,014 34,283 23,893 5,504 68,710 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) .......... (21,483) 25,610 11,002 58,661 635,679 ----------- ----------- ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments and foreign currency transactions: Net realized gain (loss) on investments 489,661 (39,978) 147,181 4,799 639,249 Net realized gain (loss) from foreign currency transactions .............. -- 82,120 4,162 -- (43) Net change in unrealized appreciation/ depreciation of investments ........ 481,517 277,417 197,114 57,388 591,277 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies ............... -- (48,118) (36,341) -- 3,496 ----------- ----------- ----------- ----------- ----------- Net gain (loss) on investments and foreign currency transactions ....................... 971,178 271,441 312,116 62,187 1,233,979 ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets from operations ............. $ 949,695 $ 297,051 $ 323,118 $ 120,848 $ 1,869,658 =========== =========== =========== =========== =========== - ---------- * Net of foreign tax withheld as follows $ -- $ 4,863 $ 2,124 $ -- $ 425 **For the period May 1, 1995 (commencement of operations) to December 31, 1995. See notes to financial statements.
-- P-41 --
Seligman Portfolios, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ Statements of Changes in Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Seligman Seligman Seligman Capital Portfolio Cash Management Portfolio Common Stock Portfolio ---------------------------- ---------------------------- ---------------------------- Year Ended December 31 Year Ended December 31 Year Ended December 31 ---------------------------- ---------------------------- ---------------------------- 1995 1994 1995 1994 1995 1994 ------------ ------------ ------------ ------------ ------------ ------------ Operations: Net investment income ............. $ 23,072 $ 5,975 $ 251,624 $ 127,857 $ 570,657 $ 515,701 Net realized gain (loss) on investments ................... 673,773 642,271 (4) (240) 3,074,117 1,108,365 Net realized gain (loss) from foreign currency transactions . -- -- -- -- (85) 20 Net change in unrealized appreciation/depreciation of investments ................ 996,837 (912,365) -- -- 2,044,468 (1,604,789) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies ............ -- -- -- -- (55,202) (40) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations ............... 1,693,682 (264,119) 251,620 127,617 5,633,955 19,257 ------------ ------------ ------------ ------------ ------------ ------------ Distributions to shareholders: Net investment income ............. (26,627) (7,465) (251,624) (127,857) (564,862) (517,958) Realized gain on investments ...... (666,241) (641,977) -- -- (2,855,419) (1,108,564) ------------ ------------ ------------ ------------ ------------ ------------ Decrease in net assets from distributions ................. (692,868) (649,442) (251,624) (127,857) (3,420,281) (1,626,522) ------------ ------------ ------------ ------------ ------------ ------------ Capital share transactions: Net proceeds from sale of shares .. 3,644,132 3,619,176 8,777,333 2,322,638 12,083,995 9,040,524 Investment of dividends ........... 26,627 7,465 251,624 127,857 564,862 517,958 Shares issued in payment of gain distributions ................. 666,241 641,977 -- -- 2,855,419 1,108,564 ------------ ------------ ------------ ------------ ------------ ------------ Total ............................. 4,337,000 4,268,618 9,028,957 2,450,495 15,504,276 10,667,046 ------------ ------------ ------------ ------------ ------------ ------------ Cost of shares repurchased ........ (1,986,672) (3,298,449) (4,459,283) (2,322,134) (9,049,478) (10,753,287) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital share transactions 2,350,328 970,169 4,569,674 128,361 6,454,798 (86,241) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets . 3,351,142 56,608 4,569,670 128,121 8,668,472 (1,693,506) Net Assets: Beginning of period ............... 5,942,374 5,885,766 3,229,841 3,101,720 20,167,573 21,861,079 ------------ ------------ ------------ ------------ ------------ ------------ End of period ..................... $ 9,293,516 $ 5,942,374 $ 7,799,511 $ 3,229,841 $ 28,836,045 $ 20,167,573 ============ ============ ============ ============ ============ ============
- ---------------- ** Commencement of investment operations. See notes to financial statements. P-42 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Seligman Seligman Communications and Fixed Income Information Portfolio Securities Portfolio Year 10/11/94** Year Ended December 31 Ended to ---------------------------- 12/31/95 12/31/94 1995 1994 ------------ ------------ ------------ ------------ Operations: Net investment income ............. $ (146,275) $ (442) $ 237,456 $ 179,900 Net realized gain (loss) on investments ................... 2,629,030 -- (16,342) (81,031) Net realized gain (loss) from foreign currency transactions . -- -- -- -- Net change in unrealized appreciation/depreciation (3,857,599) 18,511 449,551 (225,410) of investments ................ Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies ............ -- -- -- -- ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations ............... (1,374,844) 18,069 670,665 (126,541) ------------ ------------ ------------ ------------ Distributions to shareholders: Net investment income ............. -- -- (239,920) (181,555) Realized gain on investments ...... (2,505,145) -- -- -- ------------ ------------ ------------ ------------ Decrease in net assets from distributions ................. (2,505,145) -- (239,920) (181,555) ------------ ------------ ------------ ------------ Capital share transactions: Net proceeds from sale of shares .. 40,177,251 476,552 1,663,791 2,264,201 Investment of dividends ........... -- -- 239,920 181,555 Shares issued in payment of gain distributions ................. 2,505,145 -- -- -- ------------ ------------ ------------ ------------ Total ............................. 42,682,396 476,552 1,903,711 2,445,756 ------------ ------------ ------------ ------------ Cost of shares repurchased ........ (854,935) -- (1,444,282) (2,306,325) ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital share transactions 41,827,461 476,552 459,429 139,431 ------------ ------------ ------------ ------------ Increase (decrease) in net assets . 37,947,472 494,621 890,174 (168,665) Net Assets: Beginning of period ............... 494,621 -- 3,606,374 3,775,039 ------------ ------------ ------------ ------------ End of period ..................... $ 38,442,093 $ 494,621 $ 4,496,548 $ 3,606,374 ============ ============ ============ ============ Seligman Henderson Seligman Global Portfolio Frontier Portfolio ----------------------------- ---------------------------- Year 10/11/94** Year Ended December 31 Ended to ----------------------------- 12/31/95 12/31/94 1995 1994 ------------ ------------ ------------ ------------ Operations: Net investment income ............. $ (21,483) $ (106) $ 25,610 $ 13,397 Net realized gain (loss) on investments ................... 489,661 -- (39,978) 9,138 Net realized gain (loss) from foreign currency transactions . -- -- 82,120 3,259 Net change in unrealized appreciation/depreciation 481,517 9,060 277,417 (44,914) of investments ................ Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies ............ -- -- (48,118) 29,924 ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations ............... 949,695 8,954 297,051 10,804 ------------ ------------ ------------ ------------ Distributions to shareholders: Net investment income ............. -- -- (48,883) (9,661) Realized gain on investments ...... (463,105) -- (27,517) (17,511) ------------ ------------ ------------ ------------ Decrease in net assets from distributions ................. (463,105) -- (76,400) (27,172) ------------ ------------ ------------ ------------ Capital share transactions: Net proceeds from sale of shares .. 11,465,250 159,997 2,562,936 1,317,845 Investment of dividends ........... -- -- 48,883 9,661 Shares issued in payment of gain distributions ................. 463,105 -- 27,517 17,511 ------------ ------------ ------------ ------------ Total ............................. 11,928,355 159,997 2,639,336 1,345,017 ------------ ------------ ------------ ------------ Cost of shares repurchased ........ (107,785) -- (453,063) (200,626) ------------ ------------ ------------ ------------ Increase (decrease) in net assets from capital share transactions 11,820,570 159,997 2,186,273 1,144,391 ------------ ------------ ------------ ------------ Increase (decrease) in net assets . 12,307,160 168,951 2,406,924 1,128,023 Net Assets: Beginning of period ............... 168,951 -- 1,776,305 648,282 ------------ ------------ ------------ ------------ End of period ..................... $ 12,476,111 $ 168,951 $ 4,183,229 $ 1,776,305 ============ ============ ============ ============
P-43
Seligman Porfolios , Inc. - ------------------------------------------------------------------------------------------------------------------------------------ Statements of Changes in Net Assets (continued) - ------------------------------------------------------------------------------------------------------------------------------------ Seligman Henderson Seligman Seligman Global Smaller High-Yield Income Portfolio Companies Portfolio Bond Portfolio ---------------- ------------------- -------------- Year 10/11/94** 5/1/95* Year Ended December 31 Ended to to ---------------------- 12/31/95 12/31/94 12/31/95 1995 1994 -------- -------- -------- ---- ---- Operations: Net investment income .................... $ 11,002 $ 517 $ 58,661 $ 635,679 $ 678,957 Net realized gain (loss) on investments .......................... 147,181 -- 4,799 639,249 (19,113) Net realized gain (loss) from foreign currency transactions ........ 4,162 (58) -- (43) 10 Net change in unrealized appreciation/depreciation of investments ....................... 197,114 3,279 57,388 591,277 (1,298,035) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies ................... (36,341) 573 -- 3,496 (20) ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets from operations ...................... 323,118 4,311 120,848 1,869,658 (638,201) ------------ ------------ ------------ ------------ ------------ Distributions to shareholders: Net investment income .................... (20,531) (537) (60,233) (644,348) (685,315) Realized gain on investments ............. (148,062) -- (4,951) (636,880) -- ------------ ------------ ------------ ------------ ------------ Decrease in net assets from distributions ........................ (168,593) (537) (65,184) (1,281,228) (685,315) ------------ ------------ ------------ ------------ ------------ Capital share transactions: Net proceeds from sale of shares ......... 4,665,264 127,199 3,188,047 5,410,208 4,595,781 Investment of dividends .................. 20,531 537 60,233 644,348 685,315 Shares issued in payment of gain distributions ........................ 148,062 -- 4,951 636,880 -- ------------ ------------ ------------ ------------ ------------ Total .................................... 4,833,857 127,736 3,253,231 6,691,436 5,281,096 ------------ ------------ ------------ ------------ ------------ Cost of shares repurchased ............... (283,276) -- (299,473) (4,710,663) (5,127,246) ------------ ------------ ------------ ------------ ------------ Increase in net assets from capital share transactions ........... 4,550,581 127,736 2,953,758 1,980,773 153,850 ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets ........ 4,705,106 131,510 3,009,422 2,569,203 (1,169,666) Net Assets: Beginning of period ...................... 131,510 -- -- 10,050,277 11,219,943 ------------ ------------ ------------ ------------ ------------ End of period ............................ $ 4,836,616 $ 131,510 $ 3,009,422 $ 12,619,480 $ 10,050,277 ============ ============ ============ ============ ============
- ---------------- * Commencement of operations. ** Commencement of investment operations. See notes to financial statements P-44 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management investment company consisting of ten separate portfolios (the "Portfolios"), "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 Fixed Income Securities Portfolio" ("Fixed Income Securities Portfolio"), "Seligman Frontier Portfolio" ("Frontier Portfolio"), "Seligman Henderson Global Portfolio" ("Global Portfolio"), "Seligman Henderson Global Smaller Companies Portfolio" ("Global Smaller Companies Portfolio"), "Seligman High-Yield Bond Portfolio" ("High-Yield Bond Portfolio") and "Seligman Income Portfolio" ("Income 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") and Canada Life of America Annuity Account 3 ("CLVA-3"), each established by Canada Life Insurance Company of America ("Canada Life"). CLVA-2 is registered as a unit investment trust under the Investment Company Act of 1940 (the "1940 Act") and funds variable annuity contracts (the "CLVA-2 Contracts") issued by Canada Life and distributed by Seligman Financial Services, Inc. CLVA-3 is not registered or regulated as an investment company 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 Canada Life 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 Canada Life or its affiliates ("Canada Life Separate Accounts"). Shares of the Fund (except Communications and Information Portfolio, Frontier Portfolio, Global Portfolio, Global Smaller Companies Portfolio, and High-Yield Bond Portfolio) 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"). Significant accounting policies followed, all in conformity with generally accepted accounting principles, are given below: a. Investments in U.S. Government securities, bonds, convertible securities, and stocks are valued at the most current market values or, in their absence, at fair market value determined in accordance with procedures approved by the Board of Directors. Securities traded on national exchanges are valued at the last sales prices or, in their absence and in the case of over-the-counter securities, a 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 valued using the amortized cost method which approximates fair value. b. The Portfolios may invest up to 10% of their total assets in foreign securities (except Global Portfolio and Global Smaller Companies Portfolio 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 U.S. dollar-denominated American Depository Receipts ("ADRs"), American Depository Shares ("ADSs"), European Depository Receipts ("EDRs"), and Global Depository Receipts ("GDRs"). 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 and GDRs 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 U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: (i) market value of investment securities, other assets and liabilities, at the closing 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 U.S. dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. Net realized foreign exchange gains (losses) arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios' books, and the U.S. 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. P-45 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- c. The Global Portfolio and Global Smaller Companies Portfolio 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 on the last day of 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. 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. 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. The Portfolios may enter into repurchase agreements with commercial banks and with broker/dealers deemed to be creditworthy by 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. The repurchase agreements held at December 31, 1995, by various portfolios, were purchased on December 27, 1995 and matured on or before January 3, 1996. f. 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. g. 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. 2. Until April 15, 1993, the Fund functioned exclusively as the investment vehicle for the separate account options of the Mutual Benefit Plan issued by Mutual Benefit Life Insurance Company in Rehabilitation ("Mutual Benefit Life"). On July 16, 1991, the Superior Court of New Jersey (the "Court") entered an Order appointing the New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life. The Commissioner was granted immediate exclusive possession and control of, and title to, the business and assets of Mutual Benefit Life, including the assets and liabilities of the Mutual Benefit Plan. On November 10, 1993, the Court issued an Order of Confirmation which provided for implementation of the Third Amended Plan of Rehabilitation of Mutual Benefit Life (the "Plan of Rehabilitation"). On April 29, 1994, the Plan of Rehabilitation was implemented. Substantially all of the assets and liabilities of Mutual Benefit Life were transferred to MBL Life. In addition, the assets and liabilities of the Mutual Benefit Plan were transferred to a separate account of MBL Life. As a separate account, the assets and liabilities of the Mutual Benefit Plan are maintained separate and apart from MBL Life's other assets and liabilities. Also, as of April 29, 1994, the ownership of the stock of MBLLife was transferred to a Trust. The Commissioner is the sole Trustee of the Trust. 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 the Fixed Accumulation Account from the Plan will not be accepted. P-46 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. Purchases and sales of portfolio securities, excluding short-term investments, for the year ended December31, 1995, were as follows: Portfolio Purchases Sales --------- --------- ----- Capital $ 9,827,294 $ 8,320,193 Common Stock 12,084,887 12,040,847 Communications and Information 53,884,929 15,466,766 Fixed Income Securities 4,126,842 3,924,761 Frontier 14,387,330 3,698,729 Global 3,182,368 942,185 Global Smaller Companies 4,806,988 818,870 High-Yield Bond 3,628,139 858,011 Income 6,011,862 5,187,899 Identified cost of investments sold is used for both financial statement and federal income tax purposes. At December 31, 1995, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes, and the tax basis gross unrealized appreciation and depreciation of portfolio securities, including the effects of foreign currency transactions, were as follows: Unrealized Unrealized Portfolio Appreciation Depreciation --------- ------------ ------------ Capital $ 1,812,197 $ 371,742 Common Stock 7,041,926 352,723 Communications and Information 1,453,741 5,292,829 Fixed Income Securities 355,387 175 Frontier 1,150,964 660,912 Global 332,449 86,145 Global Smaller Companies 412,876 253,570 High-Yield Bond 74,070 16,682 Income 1,009,354 516,458 At December 31, 1995, the Cash Management Portfolioandthe Fixed Income Securities Portfolio had net capital loss carryforwards of $398 and $97,373, respectively, which are available for offset against future taxable net gains. These net capital loss carryforwards will expire in varying amounts through 2003. 4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of the Fund and provides the necessary personnel and facilities, exclusive of and in addition to those retained by the Fund. 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. The Manager's fee is calculated daily and payable monthly, equal to 0.40%, on an annual basis, of Capital, Cash Management, Common Stock, Fixed Income Securities, and Income Portfolios' daily net assets; equal to 0.75%, on an annual basis, 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 from the Global and the Global Smaller Companies Portfolios is calculated daily and payable monthly, equal to an annual rate of 1.00% of the daily net assets of each Portfolio, of which 0.90% is paid to Seligman Henderson Co. (the "Subadviser"), a 50% owned affiliate of the Manager. The Manager has agreed to reimburse expenses, other than the management fee, which exceed 0.20% per annum of the average daily net assets of each of the Portfolios (except Cash Management Portfolio, Global and Global Smaller Companies Portfolios). The Manager, at its discretion, has elected to waive all of its fee for, and reimburse all of the expenses of, the Cash Management Portfolio until such time as the Manager determines. Effective May 1, 1995 the Manager and Subadviser have agreed to reimburse expenses, other than management fee, which exceed 0.40% (previously 0.20%) per annum of the average daily net assets of Global and Global Smaller Companies Portfolios. For the year ended December31, 1995, the Manager reimbursed expenses and/or waived fees of $7,713, $39,914, $14,766, $16,555, and $1,910, for the Capital, Cash Management, Fixed Income Securities, Frontier, and Income Portfolios, respectively. For the same period, the Manager and Subadviser waived all of their fees and the Subadviser reimbursed expenses totalling $51,823 and $42,122 for the Global Portfolio and Global Smaller Companies Portfolio, respectively. For the period from May 1, 1995 (commencement of operations) to December31, 1995, the Manager reimbursed expenses and waived fees totalling $28,926 for the High-Yield Bond Portfolio. P-47 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- Seligman Financial Services, Inc. (the "Distributor"), agent for the distribution of the CLVA-2 contracts and an affiliate of the Manager, received concessions of $370,407 from Canada Life after commissions paid to dealers. Certain officers and directors of the Fund are officers or directors of the Manager, the Distributor, and/or the Subadviser. Fees of $36,000 were incurred by the Fund for the legal services of Sullivan & Cromwell, a member of which firm is a director of the Fund. The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Interest is accrued on the deferred balances. The annual cost of such fees and interest is included in directors' fees and expenses, and the accumulated balance thereof at December31, 1995, is included in other liabilities. Deferred fees and the related accrued interest are not deductible for federal income tax purposes until such amounts are paid. 5. At December31, 1995, there were 20,000,000 shares of Capital Stock authorized for each of the Capital, Common Stock, Communications and Information, Fixed Income Securities, Frontier, Global, Global Smaller Companies, High-Yield Bond, and Income Portfolios, and 100,000,000 shares for the Cash Management Portfolio, all at a par value of $.001 per share. Transactions in shares of Capital Stock were as follows:
Capital Portfolio Cash Management Portfolio Common Stock Portfolio ----------------------- --------------------------- ------------------------ Year Ended December 31 Year Ended December 31 Year Ended December 31 ----------------------- --------------------------- ------------------------ 1995 1994 1995 1994 1995 1994 -------- -------- ---------- ---------- -------- -------- Sale of shares ....................... 249,315 250,641 8,777,333 2,322,638 774,737 602,357 Shares issued in payment of dividends ......................... 1,811 587 251,624 127,857 36,751 37,506 Shares issued in payment of gain distributions ............. 45,323 50,470 -- -- 185,779 80,272 -------- -------- ---------- ---------- -------- -------- Total ................................ 296,449 301,698 9,028,957 2,450,495 997,267 720,135 -------- -------- ---------- ---------- -------- -------- Shares repurchased ................... (141,073) (227,501) (4,459,283) (2,322,134) (592,244) (716,170) -------- -------- ---------- ---------- -------- -------- Increase in shares ................... 155,376 74,197 4,569,674 128,361 405,023 3,965 ======== ======== ========== ========== ======== ======== Fixed Income Communications and Securities Portfolio Information Portfolio --------------------------- Frontier Portfolio ----------------------- ------------------------ Year 10/11/94** Year Ended December 31 Year 10/11/94** Ended to --------------------------- Ended to 12/31/95 12/31/94 1995 1994 12/31/95 12/31/94 -------- -------- ---------- ---------- -------- -------- Sale of shares ....................... 2,671,618 47,368 163,349 229,957 877,490 15,970 Shares issued in payment of dividends ...................... -- -- 23,069 19,564 -- -- Shares issued in payment of gain distributions ............. 187,370 -- -- -- 34,820 -- --------- -------- ---------- ---------- -------- -------- Total ................................ 2,858,988 47,368 186,418 249,521 912,310 15,970 -------- -------- ---------- ---------- -------- -------- Shares repurchased ................... (58,334) -- (144,731) (233,817) (8,346) -- --------- -------- ---------- ---------- -------- -------- Increase in shares ................... 2,800,654 47,368 41,687 15,704 903,964 15,970 ========= ======== ========== ========== ======== ========= High-Yield Global Portfolio Global Smaller Bond Income Portfolio ---------------------- Companies Portfolio Portfolio ---------------------- ------------------- ---------- Year Ended December 31 Year 10/11/94** 5/1/95* Year Ended December 31 ---------------------- Ended to to ---------------------- 1995 1994 12/31/95 12/31/94 12/31/95 1995 1994 -------- -------- -------- -------- -------- -------- -------- Sale of shares ...................... 214,972 114,731 411,729 12,701 309,043 504,495 423,636 Shares issued in payment of dividends ..................... 3,942 855 1,778 53 5,742 61,075 68,876 Shares issued in payment of gain distributions ............ 2,219 1,550 12,819 -- 472 60,368 -- -------- -------- -------- ------ -------- -------- -------- Total ............................... 221,133 117,136 426,326 12,754 315,257 625,938 492,512 -------- -------- -------- ------ -------- -------- -------- Shares repurchased .................. (40,136) (17,445) (24,643) -- (28,569) (439,030) (470,827) -------- -------- -------- ------ -------- -------- -------- Increase in shares .................. 180,997 99,691 401,683 12,754 286,688 186,908 21,685 ======== ======== ======== ====== ======== ======== ========
P-48 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Financial Highlights - -------------------------------------------------------------------------------- The Fund's financial highlights are presented below. The 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 they 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. The total return based on net asset value measures a Portfolio's performance assuming investors purchased shares of a Portfolio at net asset value as of the beginning of the period, reinvested dividends and capital gains paid at net asset value, and then sold their shares at the net asset value per share 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.
Capital Portfolio ----------------------------------------------------------------------- Year Ended December 31 ----------------------------------------------------------------------- 1995 1994 1993 1992 1991 ------- ------- ------- ------- ------- Per Share Operating Performance: Net asset value, beginning of year ................... $12.700 $14.950 $16.980 $17.740 $11.230 ------- ------- ------- ------- ------- Net investment income (loss) ......................... 0.048 0.015 0.021 (0.022) 0.079 Net realized and unrealized gain (loss) on investments 3.385 (0.699) 1.928 1.202 6.547 ------- ------- ------- ------- ------- Increase (decrease) from investment operations ....... 3.433 (0.684) 1.949 1.180 6.626 Dividends paid ....................................... (0.047) (0.018) (0.021) -- (0.088) Distributions from net realized gain ................. (1.176) (1.548) (3.958) (1.940) (0.028) ------- ------- ------- ------- ------- Net increase (decrease) in net asset value ........... 2.210 (2.250) (2.030) (0.760) 6.510 ------- ------- ------- ------- ------- Net asset value, end of year ......................... $14.910 $12.700 $14.950 $16.980 $17.740 ======= ======= ======= ======= ======= Total return based on net asset value ................ 27.17% (4.59)% 11.65% 6.80% 59.05% Ratios/Supplemental Data: Expenses to average net assets ....................... 0.60% 0.60% 0.71% 0.91% 0.60% Net investment income (loss) to average net assets ... 0.32% 0.10% 0.09% (0.14)% 0.56% Portfolio turnover ................................... 122.20% 67.39% 65.30% 54.95% 31.44% Net assets, end of year (000's omitted) .............. $9,294 $5,942 $5,886 $5,497 $5,812 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share ............... $0.035 $(0.036) $(0.003) $(0.035) Ratios: Expenses to average net assets .................... 0.71% 0.96% 0.83% 1.37% Net investment income (loss) to average net assets 0.21% (0.26)% (0.03)% (0.21)% Cash Management Portfolio ----------------------------------------------------------------------- Year Ended December 31 ----------------------------------------------------------------------- 1995 1994 1993 1992 1991 ------- ------- ------- ------- ------- Per Share Operating Performance: Net asset value, beginning of year ................... $1.000 $1.000 $1.000 $1.000 $1.000 Net investment income ................................ 0.055 0.040 0.030 0.035 0.056 Dividends paid ....................................... (0.055) (0.040) (0.030) (0.035) (0.056) ------- ------- ------- ------- ------- Net asset value, end of year ......................... $1.000 $1.000 $1.000 $1.000 $1.000 ======= ======= ======= ======= ======= Total return based on net asset value ................ 5.60% 4.03% 3.00% 3.53% 5.70% Ratios/Supplemental Data: Expenses to average net assets ....................... -- -- -- -- -- Net investment income to average net assets .......... 5.48% 3.98% 2.96% 3.50% 5.49% Net assets, end of year (000's omitted) .............. $7,800 $3,230 $3,102 $4,230 $5,849 Without management fee waiver and expense reimbursement:++ Net investment income per share ...................... $0.046 $0.025 $0.019 $0.025 $0.048 Ratios: Expenses to average net assets .................... 0.87% 1.48% 1.07% 0.97% 0.83% Net investment income to average net assets ....... 4.61% 2.50% 1.89% 2.53% 4.66%
- ---------- ++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. P-49 - -------------------------------------------------------------------------------- Financial Highlights (continued) - --------------------------------------------------------------------------------
Common Stock Portfolio ---------------------- Year Ended December 31 --------------------------------------------------------------------- 1995 1994 1993 1992 1991 ---- ---- ---- ---- ---- Per Share Operating Performance: Net asset value, beginning of period ..... $13.780 $14.980 $15.600 $14.740 $11.580 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) ............. 0.349 0.365 0.392 0.346 0.362 Net realized and unrealized gain (loss) on investments ......................... 3.400 (0.356) 1.479 1.445 3.459 ----------- ----------- ----------- ----------- ----------- Increase from investment operations ...... 3.749 0.009 1.871 1.791 3.821 Dividends paid ........................... (0.345) (0.385) (0.394) (0.369) (0.355) Distributions from net realized gain ..... (1.744) (0.824) (2.097) (0.562) (0.306) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net asset value 1.660 (1.200) (0.620) 0.860 3.160 ----------- ----------- ----------- ----------- ----------- Net asset value, end of period ........... $15.440 $13.780 $14.980 $15.600 $14.740 =========== =========== =========== =========== =========== Total return based on net asset value .... 27.28% 0.04% 11.94% 12.14% 33.16% Ratios/Supplemental Data: Expenses to average net assets ........... 0.54% 0.60% 0.55% 0.56% 0.60% Net investment income (loss) to average net assets ..................... 2.42% 2.45% 2.10% 2.21% 2.63% Portfolio turnover ....................... 55.48% 15.29% 10.70% 12.57% 27.67% Net assets, end of period (000's omitted) $28,836 $20,168 $21,861 $24,987 $26,103 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share ... $0.361 $0.350 Ratios: Expense to average net assets .......... 0.62% 0.71% Net investment income (loss) to average net assets ................... 2.43% 2.52%
Communications and Information Portfolio --------------------- 10/11/94** Year Ended to 12/31/95 12/31/94 -------- -------- Net asset value, beginning of period ..... $10.440 $10.000 ----------- -------- Net investment income (loss) ............. 0.000 (0.016) Net realized and unrealized gain (loss) on investments ......................... 4.015 0.456 ----------- -------- Increase from investment operations ...... 4.015 0.440 Dividends paid ........................... -- -- Distributions from net realized gain ..... (0.955) -- ----------- -------- Net increase (decrease) in net asset value 3.060 0.440 ----------- -------- Net asset value, end of period ........... $13.500 $10.440 =========== ======== Total return based on net asset value .... 38.55% 4.40 Ratios/Supplemental Data: Expenses to average net assets ........... 0.95% 0.95%+ Net investment income (loss) to average net assets ..................... (0.89)% (0.95)%+ Portfolio turnover ....................... 96.62% -- Net assets, end of period (000's omitted) $38,442 $495 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share ... (0.436) Ratios: Expense to average net assets .......... 13.96%+ Net investment income (loss) to average net assets ................... (13.96)%+
Fixed Income Securities Portfolio --------------------------------- Year Ended December 31 ------------------------------------------------------------------ 1995 1994 1993 1992 1991 ---- ---- ---- ---- ---- Per Share Operating Performance: Net asset value, beginning of period ...... $9.270 $10.110 $10.660 $10.990 $10.310 ---------- ---------- ---------- ---------- ---------- Net investment income (loss) .............. 0.605 0.499 0.713 0.706 0.798 Net realized and unrealized gain (loss) on investments .......................... 1.171 (0.841) 0.142 (0.092) 0.699 ---------- ---------- ---------- ---------- ---------- Increase (decrease) from investment operations .............................. 1.776 (0.342) 0.855 0.614 1.497 Dividends paid ............................ (0.606) (0.498) (0.711) (0.772) (0.817) Distributions from net realized gain ...... -- -- (0.694) (0.172) ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net asset value 1.170 (0.840) (0.550) (0.330) 0.680 ---------- ---------- ---------- ---------- ---------- Net asset value, end of period ............ $10.440 $9.270 $10.110 $10.660 $10.990 ========== ========== ========== ========== ========== Total return based on net asset value ..... 19.18% (3.39)% 7.98% 5.60% 14.58% Ratios/Supplemental Data: Expenses to average net assets ............ 0.60% 0.60% 0.74% 1.00% 0.60% Net investment income (loss) to average net assets ...................... 6.22% 5.12% 5.41% 6.22% 7.30% Portfolio turnover ........................ 114.42% 237.23% 33.21% 23.40% 6.34% Net assets, end of period (000's omitted) . $4,497 $3,606 $3,775 $4,750 $5,369 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share .... $0.571 $0.430 $0.675 $0.712 Ratios: Expense to average net assets ........... 0.99% 1.31% 1.07% 1.42% Net investment income (loss) to average net assets .................... 5.83% 4.41% 5.08% 6.48%
Frontier Portfolio ------------------ 10/11/94** Year Ended to 12/31/95 12/31/94 -------- -------- Net asset value, beginning of period ...... $10.580 10.000 ----------- -------- Net investment income (loss) .............. (0.001) (0.012) Net realized and unrealized gain (loss) on investments .......................... 3.512 0.592 ----------- -------- Increase (decrease) from investment operations .............................. 3.511 0.580 Dividends paid ............................ -- -- Distributions from net realized gain ...... -- (0.531) ----------- -------- Net increase (decrease) in net asset value 2.980 0.580 ----------- -------- Net asset value, end of period ............ $13.560 $10.580 =========== ======== Total return based on net asset value ..... 33.28% 5.80% Ratios/Supplemental Data: Expenses to average net assets ............ 0.95% 0.95%+ Net investment income (loss) to average net assets ...................... (0.55)% (0.70)%+ Portfolio turnover ........................ 106.48% -- Net assets, end of period (000's omitted) . $12,476 $169 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share .... $(0.019) $(1.319) Ratios: Expense to average net assets ........... 1.37% 40.47%+ Net investment income (loss) to average net assets .................... (0.97)% (40.22)%+ - ---------- ** Commencement of investment operations. +Annualized. ++The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. P-50
Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Global Portfolio ----------------------------------- Year Ended December 31 5/3/93* --------------------- to 1995 1994 12/31/93 ---- ---- -------- Per Share Operating Performance: Net asset value, beginning of period ........ $11.340 $11.370 $10.000 ---------- ---------- -------- Net investment income ....................... 0.154 0.131 0.021 Net realized and unrealized gain (loss) on investments ............................... 0.896 (0.306) 1.518 Net realized and unrealized gain (loss) from foreign currency transactions ............. 0.236 0.325 (0.099) ---------- ---------- -------- Increase from investment operations ......... 1.286 0.150 1.440 Dividends paid .............................. (0.151) (0.064) (0.053) Distributions from net realized gain ........ (0.085) (0.116) (0.017) ---------- ---------- -------- Net increase (decrease) in net asset value .. 1.050 (0.030) 1.370 ---------- ---------- -------- Net asset value, end of period .............. $12.390 $11.340 $11.370 ========== ========== ======== Total return based on net asset value ........ 11.34% 1.32% 14.40% Ratios/Supplemental Data: Expenses to average net assets ............... 1.35% 1.20% 1.20%+ Net investment income to average net assets .. 1.01% 1.17% 1.30%+ Portfolio turnover ........................... 41.40% 47.34% 2.82% Net assets, end of period (000's omitted) ... $4,183 $1,776 $648 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share ....... $0.001 $(0.419) $(1.004) Ratios: Expenses to average net assets ............ 3.40% 6.12% 17.94%+
Global Smaller Companies Portfolio ------------------------------- 10/11/94** Year Ended to 12/31/95 12/31/94 -------- -------- Net asset value, beginning of period ........ $10.310 $10.000 ---------------- -------------- Net investment income ....................... 0.051 0.058 Net realized and unrealized gain (loss) on investments ............................... 2.037 0.266 Net realized and unrealized gain (loss) from foreign currency transactions ............. (0.301) 0.029 ---------------- -------------- Increase from investment operations ......... 1.787 0.353 Dividends paid .............................. (0.052) (0.043) Distributions from net realized gain ........ (0.375) .-- ---------------- -------------- Net increase (decrease) in net asset value .. 1.360 0.310 ---------------- -------------- Net asset value, end of period .............. $11.670 $10.310 ================ ============== Total return based on net asset value ........ 17.38% 3.53% Ratios/Supplemental Data: Expenses to average net assets ............... 1.39% 1.20%+ Net investment income to average net assets .. 0.64% 3.14 Portfolio turnover ........................... 55.65% -- Net assets, end of period (000's omitted) ... $4,837 $132 Without management fee waiver and expense reimbursement:++ Net investment income (loss) per share ....... $(0.051) $(1.225) Ratios: Expenses to average net assets ............ 3.84% 37.25%+ Net investment loss to average net assets . (1.81)% (32.91)%+
High-Yield Bond Portfolio --------- 5/1/95* to 12/31/95 -------- Per Share Operating Performance: Net asset value, beginning of period ........ $10.000 ---------- Net investment income ....................... 0.218 Net realized and unrealized gain (loss) on investments ............................ 0.519 ---------- Increase (decrease) from investment operations ..................... 0.737 Dividends paid .............................. (0.219) Distributions from net realized gain ........ (0.018) ---------- Net increase (decrease) in net asset value .. 0.500 ---------- Net asset value, end of period .............. $10.500 ========== Total return based on net asset value ....... 7.37% Ratios/Supplemental Data: Expenses to average net assets .............. 0.70%+ Net investment income to average net assets . 7.46%+ Portfolio turnover .......................... 67.55% Net assets, end of year (000's omitted) ..... $3,009 Without management fee waiver and expense reimbursement:++ Net investment income per share ............. $0.117 Ratios: Expenses to average net assets ............ 4.38%+ Net investment income to average net assets 3.78%+
Income Portfolio -------------------------------------------------------------------- Year Ended December 31 -------------------------------------------------------------------- 1995 1994 1993 1992 1991 ---- ---- ---- ---- ---- Net asset value, beginning of period ........ $9.970 $11.380 $11.390 $11.250 $9.500 ----------- ----------- ----------- ----------- ----------- Net investment income ....................... 0.604 0.689 0.828 0.862 0.896 Net realized and unrealized gain (loss) on investments ............................ 1.187 (1.369) 0.576 0.896 2.024 ----------- ----------- ----------- ----------- ----------- Increase (decrease) from investment operations ..................... 1.791 (0.680) 1.404 1.758 2.920 Dividends paid .............................. (0.604) (0.730) (0.828) (0.987) (0.904) Distributions from net realized gain ........ (0.597) .-- (0.586) (0.631) (0.266) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net asset value .. 0.590 (1.410) (0.010) 0.140 1.750 ----------- ----------- ----------- ----------- ----------- Net asset value, end of period .............. $10.560 $9.970 $11.380 $11.390 $11.250 =========== =========== =========== =========== =========== Total return based on net asset value ....... 17.98% (5.96)% 12.37% 15.72% 30.89% Ratios/Supplemental Data: Expenses to average net assets .............. 0.60% 0.60% 0.64% 0.68% 0.60% Net investment income to average net assets . 5.55% 6.34% 6.40% 7.53% 8.05% Portfolio turnover .......................... 51.22% 29.76% 38.38% 39.46% 43.67% Net assets, end of year (000's omitted) ..... $12,619 $10,050 $11,220 $11,363 $11,509 Without management fee waiver and expense reimbursement:++ Net investment income per share ............. $0.602 $0.670 $0.826 $0.867 Ratios: Expenses to average net assets ............ 0.62% 0.77% 0.65% 0.93% Net investment income to average net assets 5.53% 6.17% 6.39% 7.72%
- ---------- * Commencement of operations. ** Commencement of investment operations. +Annualized. ++The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. P-51 Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Report of Ernst & Young LLP, Independent Auditors - -------------------------------------------------------------------------------- The Director and Shareholders, Seligman Portfolios, Inc. We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Seligman Portfolios, Inc. (comprising, respectively, the Seligman Capital Portfolio, Seligman Cash Management Portfolio, Seligman Common Stock Portfolio, Seligman Communications and Information Portfolio, Seligman Fixed Income Securities Portfolio, Seligman Frontier Portfolio, Seligman Henderson Global Portfolio, Seligman Henderson Global Smaller Companies Portfolio, Seligman High-Yield Bond Portfolio, and Seligman Income Portfolio, collectively referred to as the "Fund") as of December 31, 1995, and the related statements of operations for the year then ended, the statements of changes in nets assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures include confirmation of securities owned as of December 31, 1995, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective portfolios constituting the Seligman Portfolios, Inc. at December 31, 1995, the results of their operations for the year then ended, the changes in their net assets, for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with generally accepted accounting principles. /s/ Ernst & Young LLP New York, New York February 2, 1996 P-52 Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Board of Directors - ------------------------------------------------------------------------------- Fred E. Brown Director and Consultant, J. & W. Seligman & Co. Incorporated John R. Galvin (2) Dean, Fletcher School of Law and Diplomacy at Tufts University Director, USLIFE Corporation Alice S. Ilchman (3) President, Sarah Lawrence College Trustee, Committee for Economic Development Director, NYNEX Chairman, The Rockefeller Foundation Frank A. McPherson (2) Chairman and CEO, Kerr-McGee Corporation Director, Kimberly-Clark Corporation Director, Baptist Medical Center John E. Merow Partner, Sullivan & Cromwell, Law Firm Director, Commonwealth Aluminum Corporation Betsy S. Michel (2) Director or Trustee, Various Organizations William C. Morris (1) Chairman Chairman of the Board and President, J. & W. Seligman & Co. Incorporated Chairman, Carbo Ceramics Inc. Director, Kerr-McGee Corporation James C. Pitney (3) Partner, Pitney, Hardin, Kipp & Szuch, Law Firm Director, Public Service Enterprise Group James Q. Riordan (3) Director, The Brooklyn Union Gas Company Trustee, Committee for Economic Development Director, Dow Jones & Co., Inc. Director, Public Broadcasting Service Ronald T. Schroeder(1) Managing Director, J. & W. Seligman & Co. Incorporated Robert L. Shafer (3) Vice President, Pfizer Inc. Director, USLIFE Corporation James N. Whitson (2) Executive Vice President and Director, Sammons Enterprises, Inc. Director, C-SPAN Director, Red Man Pipe and Supply Company Brian T. Zino (1) President Managing Director, J. & W. Seligman & Co. Incorporated - ---------- Member: (1) Executive Committee (2) Audit Committee (3) Director Nominating Committee - ------------------------------------------------------------------------------- Executive Officers - ------------------------------------------------------------------------------- William C. Morris Chairman Brian T.Zino President Daniel J. Charleston Vice President Leonard J. Lovito Vice President Arsen Mrakovcic Vice President Loris D. Muzzatti Vice President Charles C. Smith, Jr. Vice President Lawrence P. Vogel Vice President Paul H. Wick 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 Seligman Henderson Co. 100 Park Avenue New York, New York 10017 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-53 -----END PRIVACY-ENHANCED MESSAGE-----