N-30D 1 doc1.txt S E L I G M A N --------------- PORTFOLIOS, INC. [GRAPHIC OMITTED] Annual Report December 31, 2001 ----------------- J. & W. SELIGMAN & CO. INCORPORATED ESTABLISHED 1864 February 8, 2002 ================================ SELIGMAN PORTFOLIOS, INC. -------------------------------- -------------------------------- -------------------------------- February 8, 2002 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, the Manager of Seligman Portfolios, Inc., is pleased to provide the enclosed report for the twelve months ended December 31, 2001. Performance and portfolio information, as well as audited financial statements, are contained in the pages following this letter. The past year was a challenging one, as the US economy slipped into recession, and the country was confronted with terrorism. The major equity indices ended 2001 in negative territory, with the Standard & Poor's 500 Composite Stock Price Index (S&P 500) returning -11.88%, the Nasdaq Composite Index returning -21.05%, and the Dow Jones Industrial Average posting a -7.10% total return for the one-year period. The Federal Reserve Board cut the federal funds rate on 11 occasions during 2001 in an effort to restart the economy. Interest rates, which had started the year at 6.50%, had been cut to 1.75% by year-end. The September 11 terrorist attacks caused a sharp decline in stock prices, but the market succeeded in recouping its losses. While the attacks inflicted a serious economic blow, the US economy had already entered into a recession starting in March 2001, according to the National Bureau of Economic Research. The September 11 attacks and rising unemployment did cause consumer spending to pull back slightly, but, overall, the consumer remained strong, helped by lower interest rates and lower energy prices. Looking ahead, we believe that much of the downturn is behind us, and that the economy will strengthen during the year. The National Association of Purchasing Managers Index has reversed its downward trend. The stock market, which had been volatile throughout 2001, staged a rally in the fourth quarter of the year. Businesses, having instituted layoffs and other costcutting measures, should begin to meet and perhaps exceed earnings targets. Another positive sign is that business inventories have been reduced; therefore, an increase in demand would spur new manufacturing activity, having a positive effect on profits. Lower tax rates should also provide a constructive environment for growth. While we expect continued market volatility (and the risk of future terrorist attacks remains), we are optimistic that the US economy will both adapt to any challenges that lie ahead and resume economic expansion. These uncertain times underscore the value of maintaining a well-diversified portfolio, taking a long-term view of investing, and adhering to a sensible financial plan. Thank you for your continued support of Seligman Portfolios, Inc.We look forward to serving your investment needs for many years to come. Respectfully, /s/ William Morris William C. Morris Chairman J. & W. Seligman & Co. Incorporated SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) -------------------------------------------------------------------------------- The following charts compare a $10,000 hypothetical investment made in Class 1 shares of each of the Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash Management Portfolio), for the 10-year period ended December 31, 2001, or since inception through December 31, 2001, if less than 10 years, to a $10,000 hypothetical investment made in the appropriate benchmark indices and averages for the same period. For those Portfolios that have issued Class 2 shares, the performance for Class 2 shares is not shown in the charts but is included in the tables of returns. The performance of Class 2 shares may be less than the performances of Class 1 shares, based on the differences in fees paid by each class and as a result of different inception dates. Accompanying each chart is a discussion of factors that affected the Portfolio during the past year. THE CHARTS AND TOTAL RETURNS DO NOT REFLECT ANY FEES OR CHARGES THAT INVESTORS WILL INCUR IN PURCHASING OR SELLING UNITS OF THE VARIABLE ACCOUNTS. SELIGMAN BOND PORTFOLIO [GRAPH OMITTED]
Lehman Bros. Lipper Corporate Debt Date Bond Portfolio Government Bond Index BBB-rated Funds Average ----------- -------------- --------------------- ----------------------- 31-Dec-1991 10000 10000 10000 31-Mar-1992 9827 9825 9977 30-Jun-1992 10100 10214 10380 30-Sep-1992 10546 10719 10891 31-Dec-1992 10559 10723 10905 31-Mar-1993 10896 11208 11493 30-Jun-1993 11144 11532 11919 30-Sep-1993 11421 11906 12356 31-Dec-1993 11402 11866 12454 31-Mar-1994 11075 11509 11999 30-Jun-1994 10951 11377 11736 30-Sep-1994 11041 11425 11840 31-Dec-1994 11016 11465 11801 31-Mar-1995 11396 12005 12353 30-Jun-1995 12181 12750 13299 30-Sep-1995 12430 12975 13644 31-Dec-1995 13129 13568 14296 31-Mar-1996 12689 13262 14005 30-Jun-1996 12639 13325 14089 30-Sep-1996 12765 13549 14424 31-Dec-1996 13141 13945 14983 31-Mar-1997 13048 13832 14895 30-Jun-1997 13474 14312 15525 30-Sep-1997 13899 14791 16143 31-Dec-1997 14322 15282 16536 31-Mar-1998 14462 15513 16839 30-Jun-1998 14867 15923 17159 30-Sep-1998 15539 16803 17411 31-Dec-1998 15497 16790 17554 31-Mar-1999 15124 16550 17487 30-Jun-1999 14825 16409 17249 30-Sep-1999 14870 16517 17251 31-Dec-1999 14802 16413 17262 31-Mar-2000 15106 16963 17592 30-Jun-2000 15329 17229 17649 30-Sep-2000 15744 17703 18113 31-Dec-2000 16319 18586 18641 31-Mar-2001 16750 19053 19249 30-Jun-2001 16750 19007 19333 30-Sep-2001 17309 20049 19913 31-Dec-2001 17221 19931 20027
During 2001, the US economy continued to slow, and the Federal Reserve Board responded with an aggressive series of interest rate cuts. These cuts should eventually help the US lift itself out of the current recession. However, the Fed's actions have thus far done little in terms of lowering long-term interest rates. The yield on the 10-year US Treasury bond was essentially unchanged from year-beginning to year-end. The long end of the yield curve has remained high primarily because of the bond market's concern that inflation remained an issue. However, there have been no signs of inflation over the course of the year. Seligman Bond Portfolio continued to seek opportunities at the long end of the yield curve, which became increasingly steep during the course of the year. These moves paid off for the Portfolio in terms of higher yields, and could also benefit the Portfolio in terms of capital appreciation if yields on longer-term bonds decline, as we believe they will in 2002. We think that the US economy is nearing the end of its contraction, and will begin to recover in 2002. We do not believe that further intervention from the Fed will be necessary, and we think the Fed is likely to maintain a fairly stable stance on monetary policy throughout the year. The short end of the yield curve is thus likely to remain stable or move a bit higher as economic activity picks up. We believe that long-bond yields, however, are likely to fall as fears of inflation subside. This will benefit the Portfolio, which had locked in higher long-term rates in 2001. In addition, the Portfolio's cash position should benefit as short-term yields move higher. SELIGMAN CAPITAL PORTFOLIO During the past year, the US economy slowed significantly, unemployment increased, and corporate profits fell sharply. In addition, the US became engaged in a global war on terrorism that nobody could have foreseen at the beginning of the year. In this environment, the stock market posted its second straight year of losses. While 2001 was extremely difficult for equity investors, there have also been signs of a future recovery. During the year, the Federal Reserve Board demonstrated its commitment to helping the economy emerge from its current recession, and delivered 11 interest rate cuts over the course of the year. The federal government's tax cut should also aid economic recovery and allow stocks to rebound. [GRAPH OMITTED]
Rusell MidCap Lipper Multi Cap Date Capital Portfolio Growth Index Growth Funds Average --------- ----------------- ------------- -------------------- 31-Dec-91 10000 10000 10000 31-Mar-92 9335 9695 9780 30-Jun-92 8647 9244 9187 30-Sep-92 9307 9739 9475 31-Dec-92 10680 10870 10737 31-Mar-93 11032 10968 10817 30-Jun-93 10837 10969 11186 30-Sep-93 11554 11709 12060 31-Dec-93 11924 12087 12282 31-Mar-94 11549 11712 11842 30-Jun-94 10536 11197 11128 30-Sep-94 11493 11992 12047 31-Dec-94 11376 11825 11992 31-Mar-95 12084 13103 12810 30-Jun-95 12810 14156 14158 30-Sep-95 13965 15550 15735 31-Dec-95 14467 15842 16095 31-Mar-96 15438 16864 17047 30-Jun-96 16495 17495 18147 30-Sep-96 16893 18090 18634 31-Dec-96 16567 18612 18962 31-Mar-97 15905 17933 17872 30-Jun-97 18078 20573 20727 30-Sep-97 20199 23451 23693 31-Dec-97 20097 22807 22756 31-Mar-98 22340 25530 25916 30-Jun-98 22895 25514 26419 30-Sep-98 18476 21256 22672 31-Dec-98 24556 26882 28934 31-Mar-99 23812 27802 30862 30-Jun-99 26585 30699 33406 30-Sep-99 26007 29161 33187 31-Dec-99 37652 40670 46227 31-Mar-00 45655 49260 52850 30-Jun-00 48443 45610 49954 30-Sep-00 54839 46759 52012 31-Dec-00 40852 35888 41070 31-Mar-01 31583 26884 31294 30-Jun-01 38800 31233 34255 30-Sep-01 26948 22550 25419 31-Dec-01 34330 28653 30181
AVERAGE ANNUAL TOTAL RETURNS+ CLASS 2 SINCE ONE FIVE 10 INCEPTION YEAR YEARS YEARS 8/30/00 ---------- ------ ------ ---------- SELIGMAN CAPITAL PORTFOLIO: CLASS 1 . . . . . . . . . . (15.97)% 15.69% 13.13% n/a CLASS 2 . . . . . . . . . . (16.18) n/a n/a (27.34)% Lipper Multi Cap Growth Funds Average . . . . . . . (26.51) 9.74 11.68 (34.96) Russell Midcap Growth Index. . . . . . . . (20.15) 9.02 11.10 (32.04)
--------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-1- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO (continued) While Seligman Capital Portfolio's performance was negative, it significantly outperformed its relative averages. The greatest contributions to performance came from consumer cyclical and consumer staple stocks. These sectors were among the few that delivered positive performance within the Portfolio's benchmark universe, and the Portfolio was significantly overweighted in both areas. Overweighting of these sectors had begun at the beginning of the year because we believed that consumers would benefit from lower interest rates, falling energy prices, and tax relief. Energy stocks were among the worst performers of 2001, and the Portfolio fortunately had almost no exposure in this area. The Portfolio also had no exposure to Enron. The Portfolio's largest industry weighting was technology, which was also the Portfolio's worst performing sector. While this was a negative in terms of absolute performance, the Portfolio's technology holdings outperformed those of its benchmark. Going forward, we will continue to emphasize technology, but will focus on those areas that are likely to benefit from an upturn in the business cycle and improving IT spending by companies. We are confident that the US economy will recover in 2002. We believe this recovery will be led by businesses, not by consumers. Companies will be seeking to rebuild inventories that had been reduced during the current economic slowdown. This will mean increased capital investment, particularly in technology equipment, including telecoms. Businesses should also benefit from the costcutting measures that have been taken during the recession. SELIGMAN COMMON STOCK PORTFOLIO The US economy weakened significantly during 2001, falling into a recession in March, according to the National Bureau of Economic Research. Among the problems was a sharp pullback in capital spending by businesses, whose profits were under severe pressure. Hoping to reverse the economic slide, the Federal Reserve Board lowered interest rates on 11 occasions during 2001, reducing the federal funds rate to 1.75% from 6.50% during the course of the year. Consumers remained more resilient than businesses, helped by stable housing prices and a wave of mortgage refinancings. The stock market regained its post-September 11 losses, and the economy has recently shown signs of strength. Seligman Common Stock Portfolio's largest holdings at the end of the period were in financials, health care, and retailing. Throughout 2001 the Portfolio was repositioned to anticipate a rebound in the US economy, something we think will occur later in 2002. Specifically, the Portfolio added to its holdings in the retail, paper and forest products, and telecommunications services sectors. Also, anticipating an increase in advertising sales, the Portfolio added to its media holdings. Health care performed strongly during the year, while the energy sector and consumer staples detracted from performance. The Portfolio did not hold shares of Enron. Going forward, the Portfolio will be constructed using a mixture of quantitative and analytical approaches, along with fundamental investment analysis. Utilizing a quantitative model allows for the evaluation of a large number of companies with a great degree of objectivity, seeking to lower benchmark-relative risk. At the same time, management of the Portfolio will continue to be active, with an emphasis on bottom-up stock picking based on in-depth company research. [GRAPH OMITTED]
Date Common Portfolio S&P 500 --------- ---------------- ------- 31-Dec-91 10000 10000 31-Mar-92 10190 9747 30-Jun-92 10109 9932 30-Sep-92 10522 10245 31-Dec-92 11213 10760 31-Mar-93 11616 11231 30-Jun-93 11738 11286 30-Sep-93 12033 11577 31-Dec-93 12552 11845 31-Mar-94 12041 11396 30-Jun-94 12108 11444 30-Sep-94 12720 12004 31-Dec-94 12558 12002 31-Mar-95 13460 13170 30-Jun-95 14307 14428 30-Sep-95 15200 15575 31-Dec-95 15983 16513 31-Mar-96 17080 17400 30-Jun-96 17856 18181 30-Sep-96 18198 18743 31-Dec-96 19192 20306 31-Mar-97 19409 20850 30-Jun-97 21880 24491 30-Sep-97 23532 26325 31-Dec-97 23282 27081 31-Mar-98 25971 30859 30-Jun-98 26343 31877 30-Sep-98 24269 28705 31-Dec-98 28906 34819 31-Mar-99 29604 36553 30-Jun-99 31994 39131 30-Sep-99 29480 36685 31-Dec-99 32706 42144 31-Mar-00 29969 43109 30-Jun-00 32628 41962 30-Sep-00 32254 41555 31-Dec-00 29263 38305 31-Mar-01 25994 33762 30-Jun-01 27618 35737 30-Sep-01 23012 30491 31-Dec-01 25681 33751
In 2002, we expect the economy to recover from the current recession and begin to accelerate, most likely during the second half of the year. The economy is likely being helped by the combination of an accommodative Fed policy, increased government spending, lower tax rates, and continued strong consumer spending. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-2- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO The past year was challenging for technology investors. Despite an environment in which most equity averages finished the year in negative territory, Seligman Communications and Information Portfolio posted a positive return. The Portfolio's defensive efforts to maintain an underweighted exposure to the semiconductor and electronics capital equipment industries proved prudent. We believe these sectors will continue to suffer as high inventories are worked down. The Portfolio increased its weighting in information services companies during the year, as these types of companies tend to be more resistant to recession because of their recurring and predictable revenues. The Portfolio's software holdings performed well, while its telecom holdings detracted from performance.
AVERAGE ANNUAL TOTAL RETURNS+ Class 1 Class 2 Since Since One Five Inception Inception Yr. Yrs. 10/11/94 5/1/00 --------- --------- ---------- ----------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO: CLASS 1. . . . . . . . . . 5.34% 15.81% 17.86% . n/a CLASS 2 5.08 n/a n/a (27.54)% JPMorgan H&Q Technology Funds Index (31.36) 12.39 19.94 (55.42) Lipper Science & Technology Funds Average (37.96) 11.45 17.42** (41.83)* S&P 500 Index (11.88) 10.70 15.60 (12.69)
* From April 30, 2000. ** From October 13, 1994. [GRAPH OMITTED]
Lipper Science & H&Q Technology Date C&I Portfolio Technology Funds Average S&P 500 Funds Index ----------- ------------- ------------------------ ------- -------------- 11-Oct-1994 10000 10000 10000 10000 31-Dec-1994 10440 10481 10140 11100 31-Mar-1995 11030 11308 11128 12420 30-Jun-1995 14690 13715 12190 15481 30-Sep-1995 16950 15699 13159 17486 31-Dec-1995 14464 15044 13952 16549 31-Mar-1996 13618 15318 14701 16858 30-Jun-1996 13993 16501 15361 18047 30-Sep-1996 15139 17715 15836 19146 31-Dec-1996 15739 18546 17156 20521 31-Mar-1997 14271 16688 17616 19550 30-Jun-1997 16961 19801 20692 23521 30-Sep-1997 22018 23516 22242 28495 31-Dec-1997 19237 20793 22880 24004 31-Mar-1998 22103 24449 26072 29064 30-Jun-1998 21765 25376 26933 29750 30-Sep-1998 18105 22564 24253 26433 31-Dec-1998 26256 31886 29419 37302 31-Mar-1999 26715 37529 30884 40611 30-Jun-1999 31755 42741 33061 48084 30-Sep-1999 33624 46025 30995 50815 31-Dec-1999 48787 75036 35607 83153 31-Mar-2000 56991 89773 36422 93789 30-Jun-2000 51144 81108 35453 84081 30-Sep-2000 43250 80180 35109 82543 31-Dec-2000 31133 51405 32364 53620 31-Mar-2001 28991 33867 28525 37448 30-Jun-2001 35125 38360 30194 41687 30-Sep-2001 24432 23451 25762 27201 31-Dec-2001 32795 31891 28516 36808
Investing in one economic sector, such as technology, may be subject to greater price fluctuations than a portfolio of diversified investments. In addition, the securities in which the Portfolio invests may be subject to greater government regulation, greater price fluctuation, and limited liquidity. The stocks of smaller companies may be subject to above-average risk. The Portfolio has begun to make new investments in the telecommunications services and cable television industries because these areas possess strong recurring revenues and good earnings prospects. Another area that we believe may exhibit strength is enterprise software, particularly within security and information services. Prior to the September 11 terrorist attacks, we thought this area was promising, and now, in light of increased security concerns, we believe this area has become even more relevant. Other areas the Portfolio is focusing on reflect where corporations are spending their information technology (IT) budgets. With many companies tightening their spending, we are looking at the items that companies must spend money on in order to keep their businesses running smoothly and effectively; for example, non-discretionary spending on anti-virus software. Despite the fourth-quarter rally in technology stocks, a high degree of uncertainty remains. The fear of future terrorist attacks may cause stocks to continue to be punished if emotions override fundamentals. While consumer confidence and demand will likely remain muted over the near term, we are confident that they will gradually return, aided by the significant monetary and fiscal stimulus currently present in the system. Ultimately, we expect the economy to show its resilience. We believe that demand fundamentals for technology companies will likely recover in 2002, presenting the Portfolio with buying opportunities over the next several months. We will look to invest in companies that we believe are prepared to endure the current difficult environment and, on a relative basis, may emerge stronger for it. We will continue to seek out those high-quality companies trading at reasonable prices relative to growth rates, profitability, and cash flows. SELIGMAN FRONTIER PORTFOLIO The US economy slipped into recession in 2001, plagued by rising unemployment, reduced capital spending by businesses, and diminishing prospects for corporate earnings. The September 11 terrorist attacks also inflicted a serious economic blow. Small- and mid-cap stocks tended to outperform large-cap stocks during 2001 because of favorable relative valuations and earnings, which have generally been growing faster among small- and mid-sized companies. Stocks that performed well in 2001 were not the traditional defensive issues, but those that typically outperform in periods of economic recovery, including retailers and consumer stocks. In the second half of 2001, Seligman Frontier Portfolio increased its weighting in consumer-oriented stocks. We believe that consumer spending will pick up in 2002. Investments in this area have focused on education stocks, which tend to show strength during periods of economic slowdown, and on video entertainment manufacturers. The Portfolio has also invested in several specialty retailers that we believe should be among the early beneficiaries of a 2002 economic recovery. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-3- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued) [GRAPH OMITTED]
Russell 2000 Russell 2000 Lipper Small Cap Frontier Portfolio Growth Index Index Growth Funds Average ------------------ ------------ ------------ -------------------- 11-Oct-1994 10000 10000 10000 10000 31-Dec-1994 10580 9930 9871 9992 31-Mar-1995 11300 10474 10326 10570 30-Jun-1995 12260 11513 11294 11585 30-Sep-1995 13780 12822 12409 13069 31-Dec-1995 14101 13012 12678 13440 31-Mar-1996 15443 13759 13325 14477 30-Jun-1996 17065 14562 13992 15894 30-Sep-1996 17731 14439 14039 16176 31-Dec-1996 17476 14476 14770 16198 31-Mar-1997 15855 12958 14006 14626 30-Jun-1997 19203 15232 16276 17329 30-Sep-1997 21455 17809 18698 20334 31-Dec-1997 20331 16349 18072 19129 31-Mar-1998 22650 18292 19890 21486 30-Jun-1998 22044 17242 18962 20740 30-Sep-1998 16839 13387 15142 16301 31-Dec-1998 20034 16551 17612 20405 31-Mar-1999 16324 16273 16657 19972 30-Jun-1999 18823 18673 19247 23036 30-Sep-1999 18115 17755 18030 23301 31-Dec-1999 23358 23683 21356 32472 31-Mar-2000 25213 25881 22869 37943 30-Jun-2000 24312 23973 22004 36181 30-Sep-2000 23255 23022 22247 36325 31-Dec-2000 19661 18371 20711 30692 31-Mar-2001 15899 15579 19363 24936 30-Jun-2001 19068 18378 22130 29401 30-Sep-2001 15357 13218 17529 22064 31-Dec-2001 18216 16675 21225 27252
Note: In the future, the Portfolio will not be compared to the Russell 2000 Index because this index represents both small-cap growth and small-cap value stocks, while the Portfolio generally invests in only small-cap growth stocks. The stocks of smaller companies may be subject to above-average market price fluctuations. Overall, the Portfolio's technology holdings hurt performance in 2001, but technology staged a fourth-quarter rally, and this contributed positively to performance at the end of the year. The Portfolio continued to maintain a low weighting in semiconductors because we feel demand may continue to be weak, while inventories remain high. The Portfolio's investments continued to be focused on software and services companies, which we believe are poised to excel as business confidence improves. We expect to see signs of an economic rebound by the middle of 2002. Financial markets tend to anticipate rather than react to an improvement in fundamentals, and we believe the late-year stock market rally was evidence of this. Short-term volatility is likely, however. We continue to believe that small-cap stocks offer greater opportunity than large-cap stocks. Historically, the stocks of smaller companies have delivered strong relative performance as the economy begins a recovery. SELIGMAN GLOBAL GROWTH PORTFOLIO++ During a year of slowing economic growth around the world, Seligman Global Growth Portfolio has sought to identify companies that are able to compete on a global basis, and that show strong potential. We employ a combination of top-down and bottom-up analysis when evaluating companies for inclusion in the Portfolio. At year-end, the Portfolio had slightly over one-half of its assets invested in the US. This position had increased during the past year, and it reflects our expectation that the US economy will rebound in 2002 as a result of aggressive easing by the Federal Reserve Board. The Portfolio dedicated roughly one-quarter of its holdings to Continental Europe (where the largest country weightings are France and Germany), and significantly increased its exposure to the United Kingdom during the period under review. Continental Europe has experienced the same combination of economic sluggishness and rising unemployment that the US has, but the European Central Bank has been less proactive than the Fed in lowering interest rates. The UK's economy has held up better, and the Bank of England, like the Fed, has actively cut rates throughout the year. The Portfolio's largest sector weightings at year-end were financial services, drugs and health care, and consumer goods and services. The Portfolio's technology holdings caused overall performance to suffer. [GRAPH OMITTED]
International Lipper International Portfolio Funds Avg. EAFE Index ------------- -------------------- ---------- 10000 10000 10000 10010 9985 10025 10480 10832 10697 11440 11875 10796 10987 11790 11180 11399 11915 11760 11751 12311 11778 11591 11856 11667 11428 11691 11893 11765 12204 11989 12603 12790 12499 12905 13074 13015 13228 13664 13400 13603 14175 13623 13520 14135 13616 13819 14759 13843 13925 14978 13637 15802 16655 15417 15716 16917 15318 14973 15657 14128 17295 17995 16217 17682 18128 16400 14719 15215 14080 17340 17742 17001 17374 18041 17250 18118 19075 17700 18705 19826 18489 21960 24950 21642 19821 25305 21631 16718 23979 20787 16401 22209 19122 14830 21112 18621 12421 18081 16077 12296 18099 15938 10653 15254 13714 11210 16533 14672
One of the Portfolio's themes is the aging population, and the financial services and health care sectors help us capitalize on this trend. The Portfolio's health care holdings focus on large pharmaceutical companies, along with a smaller number of biotechnology firms. During the year, the Portfolio perceived a good opportunity to move into these areas; we were able to buy companies with double-digit growth that were selling at attractive prices. We were also encouraged by the large number of new products in this sector and the cost-cutting measures adopted by many companies. In the financial arena, we think that an older and wealthier population will translate into increased demand for financial services. In addition, with people living longer, companies providing life insurance are seeing fewer payouts. At the same time, insurance companies have sharply increased premiums after the events of September 11, a move which should improve their profitability and benefit their stock prices. The Portfolio seeks out the largest and best-capitalized companies in this sector. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-4- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued) The war on terrorism has made the future more uncertain, and we are focusing on what we do know, as opposed to the unknown. For example, we expect that defense and security spending will increase, and we will try to determine where those resources will be allocated. We believe the combination of lower interest rates, lower energy prices, and a federal tax cut will set the stage for a rebound in the US in 2002. We will seek quality names within the consumer cyclicals and consumer staples areas. Additionally, a US recovery should have a positive effect on other economies. SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO The past year was another volatile one for global stock markets. The US economy was in recession, and most other regions displayed significant economic weakness. In 2001, value stocks outperformed growth stocks, and Seligman Global Smaller Companies Portfolio's performance was hurt by its exposure to technology and other growth-oriented sectors. Poor performance by small-cap cyclicals during the first nine months of the year also hurt investment results. Markets rallied during the fourth quarter, however, and technology and cyclicals rebounded during this time. In response to the September 11 terrorist attacks, the Portfolio became more defensive. Our goal is to find stocks that will perform well in the near term, as well as over the longer term. In particular, we are looking for stocks that have catalysts for strong performance. The Portfolio's largest sector weightings at year-end were in commercial services and supplies, health care equipment and services, and energy. During the year, the Portfolio's US weighting increased, anticipating a recovery in the US in 2002. The Portfolio's US weighting is now more in line with that of its benchmark. The Portfolio's weighting in US consumer-oriented stocks began to increase in the latter half of the year. We believe that consumer spending will pick up in 2002, and that investors will be attracted to these stocks. During the year, the Portfolio's weighting in telecommunications and wireless providers was reduced. We believe that subscriber growth will slow considerably going forward. The Portfolio's overall technology exposure has been lowered due to the continued slowdown in the sector. The Portfolio's investment in technology is now focused on software and services companies, which we believe are likely to recover when the US economy strengthens. The Fund's health care weighting continues to focus on hospital management companies. Despite the slowdown in the US, the UK's economy showed strength in 2001, largely driven by consumer spending. The Bank of England followed the lead of the US Federal Reserve Board and lowered interest rates aggressively throughout the year. The UK portion of the Portfolio remained focused on computer software and business services, two sectors that we expect will see continued earnings growth. After good performance, the Portfolio will continue to reduce its UK holdings, as the economy there is slowing. [GRAPH OMITTED]
Global Smaller Lipper Global Small Salomon Bros Date Companies Portfolio Cap Funds Avg. World EM Index ----------- ------------------- ------------------- -------------- 11-Oct-1994 10000 10000 10000 31-Dec-1994 10353 9675 9724 31-Mar-1995 10594 9646 9997 30-Jun-1995 10886 10411 10404 30-Sep-1995 11860 11415 11110 31-Dec-1995 12152 11480 11352 31-Mar-1996 13246 12371 11969 30-Jun-1996 14589 13187 12460 30-Sep-1996 14464 13119 12459 31-Dec-1996 14421 13375 12774 31-Mar-1997 14196 13121 12396 30-Jun-1997 15810 14530 13793 30-Sep-1997 16023 15305 14658 31-Dec-1997 14915 14013 13844 31-Mar-1998 17260 15976 15649 30-Jun-1998 17329 15754 15285 30-Sep-1998 14433 12522 12651 31-Dec-1998 15897 14391 14665 31-Mar-1999 14531 14337 14306 30-Jun-1999 16235 16086 15857 30-Sep-1999 16971 16371 15560 31-Dec-1999 20402 21714 17947 31-Mar-2000 22445 24686 19324 30-Jun-2000 20857 22910 18775 30-Sep-2000 20192 22818 18769 31-Dec-2000 17418 20340 17538 31-Mar-2001 14841 17323 15788 30-Jun-2001 16002 18681 17259 30-Sep-2001 12858 14916 14304 31-Dec-2001 14762 17149 16347
Economic growth in Continental Europe was far less robust than in the UK, and the European Central Bank was less willing to lower interest rates in response to weakening conditions. The slowdown in the US manufacturing sector spread to Europe. The Portfolio's holdings in this region include consumer goods and services, computer software, and construction companies. The Portfolio took advantage of attractive valuations to add some quality Italian companies. Japan continued to deliver generally weak performance. The Portfolio is slightly underweighted in Japan, as there has been no meaningful economic reform and no economic growth. The Portfolio's Japanese holdings became more concentrated, remaining focused on services. Some technology names were also added during the year. In the rest of Asia, the Portfolio's overweighting in defensive stocks proved fortunate. Australia and New Zealand performed especially well. Since an economic recovery is not guaranteed, the Portfolio, by devoting a portion of its assets to defensive issues, is hedging its bets. However, we do believe the global economy will recover eventually, led by the US. We continue to look for reasonably valued companies with strong growth characteristics. Historically, smaller-company stocks have been stronger relative performers coming out of periods of economic weakness. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-5- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO++ The past year was a difficult one for technology investors. Though Seligman Global Technology Portfolio posted negative performance for the year, it outperformed its relative technology indices. As the US and global economies slowed, business spending, including investment in information technology, was reduced significantly. The technology sector is suffering not only from slow demand, but also from too much supply. Fortunately, much progress has been made in reducing this overcapacity. Technology companies have also increased their focus on improving their balance sheets. [GRAPH OMITTED]
Global Technology Lipper Global Lipper Sci & Tech MSCI World H&Q Technology Date Portfolio Funds Avg. Funds Avg. Index Index --------- ---------- ------------- ----------------- ---------- -------------- 1-May-96 10000 10000 10000 10000 10000 30-Jun-96 9860 10134 9778 10080 9283 30-Sep-96 9970 10245 10497 10226 9848 31-Dec-96 10401 10737 10990 10706 10555 31-Mar-97 9957 10832 9889 10749 10056 30-Jun-97 11328 12172 11734 12379 12099 30-Sep-97 13525 12850 13935 12746 14657 31-Dec-97 12432 12209 12322 12444 12347 31-Mar-98 14803 13881 14488 14239 14950 30-Jun-98 15108 13975 15037 14541 15303 30-Sep-98 12761 11941 13371 12811 13597 31-Dec-98 17007 14095 18895 15530 19188 31-Mar-99 17928 14530 22238 16096 20890 30-Jun-99 21464 15686 25327 16879 24733 30-Sep-99 23724 15561 27274 16642 26138 31-Dec-99 37211 19424 44465 19465 42773 31-Mar-00 43875 20301 53197 19676 48243 30-Jun-00 39356 19350 48062 18992 43250 30-Sep-00 35556 18795 47513 18052 42459 31-Dec-00 28375 17531 30461 16948 27581 31-Mar-01 22570 15063 20069 14783 19263 30-Jun-01 24881 15571 22731 15193 21443 30-Sep-01 16907 13055 13897 13020 13992 31-Dec-01 22117 14476 18898 14148 18934
We believe the Portfolio's focus on valuation has helped to mitigate an otherwise difficult year. We continue to be bottom-up investors, closely analyzing the risk and reward of individual securities. During 2001, the Portfolio increased its computer software holdings and decreased its holdings in telecommunications and electronics capital equipment. The underweighted telecom position in particular helped the Portfolio outperform its relevant technology indices. Performance was most negatively impacted by an overweight position in the electronic equipment sector. During 2001, the Portfolio's exposure to US technology stocks was increased. This was fortunate, as the US greatly outperformed most European and Asian technology indices. The Portfolio was underweighted in Europe during the period under review, mainly because we believed Europe would see a decrease in IT spending. The Portfolio's European holdings included wireless operators, which we perceived to have positive risk/reward characteristics. In Asia, the Portfolio favored the theme of outsourcing manufacturing to lower-cost areas, such as Taiwan. While technology stocks benefited from a fourth-quarter 2001 rally, the environment is still uncertain. However, our outlook for global technology remains cautiously optimistic. We believe that technology companies will continue to make progress on improving their finances. Overcapacity in the technology sector is being reduced, and we think that supply will soon be more in line with demand. We think technology is still an attractive investment because of continued product innovation. SELIGMAN HIGH-YIELD BOND PORTFOLIO Seligman High-Yield Bond Portfolio's relative performance was hurt this year by exposure to lower-quality, higher-yielding bonds, which declined in the weakening economy. In addition, exposure to the telecommunications sector hurt performance. Telecom suffered as investors repeatedly lowered their expectations regarding the industry's future performance. The Portfolio's telecom exposure was lowered during the year to bring it in line with market averages. The credit quality, diversification, and liquidity of the Portfolio have been improved. This should help relative performance, as well as provide the Portfolio with the flexibility to adjust to changes in the marketplace. Throughout 2001, the US economy slowed, characterized most by a decrease in business spending and investment. Aware that the economy was decelerating at a rapid pace, the Federal Reserve Board instituted 11 interest rate cuts during the year, hoping an aggressive monetary easing policy would encourage a return to economic growth. Normally, decreasing interest rates are positive for the high-yield market, but in 2001 the positive influence of lower rates was offset by a high default rate (currently around 10%) and deteriorating corporate earnings. High-yield bonds underperformed higher-quality corporate bonds and Treasuries. Both supply and demand in the high-yield market declined in 2001. During the third and fourth quarters, the Portfolio holdings of more liquid issues were increased, and concentrations in certain sectors and individual securities were reduced. Maximum current income remains the principal investment objective, thus much of the repositioning accomplished toward year-end was designed to add quality holdings with competitive yields. We think opportunities exist in eco- --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-6- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) nomically sensitive companies well positioned for a market recovery; this includes areas such as transportation, automobiles, chemicals, and advertising- related media. We believe 2002 will be a better year, both for the US economy and for the high-yield market. We expect the economy will be helped by the Fed's aggressive easing, lower marginal tax rates, and increased government spending on security and defense. Over the near term, energy prices should remain low due to diminished demand, and consumer spending should continue to hold up well. In terms of the high-yield market, last year's flight to quality should reverse itself, as investors begin to seek higher returns and become more comfortable with taking on additional risk. The perception that defaults have peaked should cause spreads to tighten and prices to increase, encouraging investors to view highyield bonds more favorably. Factors such as stable interest rates, low inflation, and improving earnings should create a favorable environment for high-yield bonds. [GRAPH OMITTED]
Date High-Yield Bond Portfolio High-Yield Market Index High Current Yield Funds Avg. ----------- ------------------------- ----------------------- ----------------------------- 1-May-1995 10000 10000 10000 30-Jun-1995 10030 10324 10196 30-Sep-1995 10300 10655 10510 31-Dec-1995 10737 11014 10833 31-Mar-1996 11126 11252 11125 30-Jun-1996 11341 11462 11334 30-Sep-1996 11872 11982 11867 31-Dec-1996 12307 12448 12294 31-Mar-1997 12252 12555 12383 30-Jun-1997 13022 13135 13038 30-Sep-1997 13824 13733 13721 31-Dec-1997 14164 13969 13925 31-Mar-1998 14820 14459 14514 30-Jun-1998 14987 14550 14578 30-Sep-1998 13925 13635 13550 31-Dec-1998 14309 14047 13946 31-Mar-1999 14506 14355 14345 30-Jun-1999 14335 14489 14425 30-Sep-1999 13914 14248 14218 31-Dec-1999 14201 14552 14605 31-Mar-2000 13920 14343 14432 30-Jun-2000 13920 14381 14435 30-Sep-2000 13846 14460 14353 31-Dec-2000 12934 13733 13498 31-Mar-2001 12800 14453 14049 30-Jun-2001 11971 14366 13736 30-Sep-2001 11008 13794 13054 31-Dec-2001 11032 14574 13753
SELIGMAN INCOME PORTFOLIO The US economy weakened significantly during 2001, ultimately falling into a recession. Among the problems was a sharp pullback in capital spending by businesses, whose profits were under severe pressure. Hoping to reverse the economic slide, the Federal Reserve Board lowered interest rates on 11 occasions during 2001, reducing the federal funds rate to 1.75% from 6.50% during the course of the year. Consumers remained more resilient than businesses. The stock market regained its post-September 11 losses, and the economy has recently shown signs of strength. Seligman Income Portfolio devoted roughly 60% of its assets to stocks, with the remainder divided fairly evenly between US government securities, investment-grade corporate bonds, and convertible bonds. At year-end, the largest holdings in the equity portion of the Portfolio were in financials, health care, and retailing. Corporate bond holdings focused on the financial sector, while the Portfolio's convertibles were concentrated in the technology sector. Health care was a strong performer for the Portfolio during the year, particularly the medical product stocks. Consumer cyclicals also performed well. Good stock picking in the software and services sector also helped performance. The areas that detracted most from performance during the period under review were the energy sector and consumer staples. The Portfolio's overweighting in technology also hurt performance overall, particularly during the third quarter, although the sector performed quite strongly during the fourth quarter. Going forward, the Portfolio will be constructed using a mixture of quantitative and analytical approaches, along with fundamental investment analysis. In 2002, we expect the economy to recover from the current recession and begin to accelerate, most likely during the second half of the year. The economy is likely being helped by the combination of an accommodative Fed policy, increased government spending, lower tax rates, and continued strong consumer spending. There have been fewer earnings disappointments, and we believe this is a positive sign that the economy may have turned the corner. We believe that the Portfolio, having positioned its portfolio to benefit from an economic recovery, will enjoy a successful 2002. [GRAPH OMITTED]
Income Lehman Bros. Lipper Income Funds Date Portfolio Aggregate Average Bond Index S&P 500 ----------- --------- ------------ ------------------- ------- 31-Dec-1991 10000 10000 10000 10000 31-Mar-1992 10409 9872 10031 9747 30-Jun-1992 10667 10271 10397 9932 30-Sep-1992 11058 10712 10773 10245 31-Dec-1992 11572 10741 11019 10760 31-Mar-1993 12201 11185 11696 11231 30-Jun-1993 12537 11481 11972 11286 30-Sep-1993 12913 11781 12396 11577 31-Dec-1993 13003 11788 12554 11845 31-Mar-1994 12455 11450 12099 11396 30-Jun-1994 12077 11332 12023 11444 30-Sep-1994 12489 11401 12337 12004 31-Dec-1994 12228 11444 12124 12002 31-Mar-1995 12669 12021 12808 13170 30-Jun-1995 13528 12753 13621 14428 30-Sep-1995 14325 13003 14259 15575 31-Dec-1995 14426 13557 14820 16513 31-Mar-1996 14603 13317 15087 17400 30-Jun-1996 14795 13393 15359 18181 30-Sep-1996 14917 13641 15648 18743 31-Dec-1996 15386 14050 16407 20306 31-Mar-1997 15474 13971 16470 20850 30-Jun-1997 16483 14484 17659 24491 30-Sep-1997 17287 14965 18665 26325 31-Dec-1997 17543 15405 19005 27081 31-Mar-1998 18534 15645 19968 30859 30-Jun-1998 18534 16011 20068 31877 30-Sep-1998 18144 16689 19316 28705 31-Dec-1998 18904 16745 20526 34819 31-Mar-1999 18595 16662 20592 36553 30-Jun-1999 19024 16515 21221 39131 30-Sep-1999 18217 16627 20691 36685 31-Dec-1999 19447 16607 21548 42144 31-Mar-2000 19781 16974 21902 43109 30-Jun-2000 19761 17270 21900 41962 30-Sep-2000 19820 17790 22567 41555 31-Dec-2000 19019 18539 22708 38305 31-Mar-2001 18073 19100 22237 33762 30-Jun-2001 18940 19207 22857 35737 30-Sep-2001 16989 20093 21799 30491 31-Dec-2001 18735 20103 22723 33751
--------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-7- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO++ Seligman International Growth Portfolio's performance was hurt by the fact that value stocks continued to outperform growth stocks during 2001. Difficult economic times often prompt investors to focus on current earnings, rather than prospects for long-term growth. The Portfolio's technology holdings were hit particularly hard during the first three months of the year, before rallying in the fourth quarter. The Portfolio's focus is still on those stocks that can compete on a global basis and that show the most growth potential. We believe these are the stocks that stand to benefit first from an upturn in the global economy, expected in 2002. The Portfolio's largest sector weightings at year-end were in banking, health care, and consumer staples. The health care and banking investments sought to capitalize on the theme of an aging population and the resulting increase in demand for pharmaceutical products and financial services. The Portfolio significantly increased its exposure to the UK during the past year. One of the reasons we felt positive about the UK was its attractive valuations relative to Europe and the US. In addition, its economy has been one of the most resilient in the world during this difficult year. This is partly due to the Bank of England's aggressive lowering of interest rates. In addition to providing liquidity to the marketplace, these accommodative moves have sparked a great deal of refinancing activity in the UK. Consumer spending and real estate prices have been the direct beneficiaries of this easing trend. The Portfolio's holdings in the UK have been concentrated in banking and consumer goods and services. Continental Europe remained the Portfolio's largest geographic allocation, representing just over one-half of assets. France, Germany, and Switzerland were the largest country weightings in this region at year-end. Despite the fact that the UK is more closely linked by trade to the US economy, Europe has experienced more of an economic slowdown. Like the US, Europe has suffered from weak corporate earnings, increasing unemployment, and a slowdown in capital expenditures. The European Central Bank lowered interest rates in 2001, but it did so less aggressively than the US Federal Reserve Board or the Bank of England. This is surprising, since inflation is not currently a major concern in Europe. Still, the region tends to have fewer layoffs and higher savings rates than the US, creating a more resilient consumer. The introduction of euro-denominated notes and coins in January 2002 seems to have gone smoothly. [GRAPH OMITTED]
International Portfolio Lipper International Funds Avg. EAFE Index ----------------------- ------------------------------- ---------- 10000 10000 10000 10010 9985 10025 10480 10832 10697 11440 11875 10796 10987 11790 11180 11399 11915 11760 11751 12311 11778 11591 11856 11667 11428 11691 11893 11765 12204 11989 12603 12790 12499 12905 13074 13015 13228 13664 13400 13603 14175 13623 13520 14135 13616 13819 14759 13843 13925 14978 13637 15802 16655 15417 15716 16917 15318 14973 15657 14128 17295 17995 16217 17682 18128 16400 14719 15215 14080 17340 17742 17001 17374 18041 17250 18118 19075 17700 18705 19826 18489 21960 24950 21642 19821 25305 21631 16718 23979 20787 16401 22209 19122 14830 21112 18621 12421 18081 16077 12296 18099 15938 10653 15254 13714 11210 16533 14672
The Japanese economy remains weak, and the Portfolio is still slightly underweighted here. Hopes were high that reformist Prime Minister Junichiro Koizumi would be able to revive the economy, but we have been disappointed thus far by the pace of reform. However, we think it would be a mistake to be too categorically bearish on Japan, as we believe Prime Minister Koizumi has the correct instincts, and he may well be successful in advancing his agenda. In the rest of the Pacific region, the Portfolio's exposure was increased, although we are still underweighted versus the index. Portfolio holdings are concentrated in Hong Kong and Australia, with a focus on resources. The export-reliant Pacific region should benefit strongly from a rebound in the global economy. Over the short term, international stock markets will likely be volatile, reflecting continued political and economic uncertainty. Our outlook is for a muted economic environment going into 2002, but we expect conditions to improve around the world as the year progresses. Working in the global economy's favor is the fact that a year of declining interest rates has created a great deal of liquidity. Also significant is the drop in oil prices, which will put more money into the hands of consumers, as well as support corporate profits. We expect that the UK will continue to outperform the rest of Europe for the near future. Economic conditions in Europe should start to improve several months after a US recovery. The Portfolio may seek to increase its presence in Asia via Taiwan, South Korea, Singapore, or Hong Kong, as these markets' exports will be helped by a global recovery. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-8- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO In 2001, the US economy slowed significantly, unemployment increased, and corporate profits fell sharply. In this environment, the stock market posted its second straight year of losses. [GRAPH OMITTED]
Seligman Large-Cap Russell 1000 Lipper Large-Cap Growth Portfolio Growth Index Growth Funds Average ------------------ ------------ -------------------- 1-May-1999 10000 10000 10000 31-May-1999 9730 9608 9689 30-Jun-1999 10420 10281 10374 31-Jul-1999 10120 9954 10066 31-Aug-1999 10270 10117 10063 30-Sep-1999 10080 9904 9969 31-Oct-1999 10470 10652 10666 30-Nov-1999 10990 11227 11238 31-Dec-1999 12160 12395 12563 31-Jan-2000 11650 11813 12083 29-Feb-2000 12320 12391 12901 31-Mar-2000 12850 13278 13613 30-Apr-2000 12480 12646 12840 31-May-2000 12100 12009 12107 30-Jun-2000 13340 12919 12978 31-Jul-2000 12900 12380 12732 31-Aug-2000 14260 13501 13828 30-Sep-2000 13410 12224 12893 31-Oct-2000 12390 11645 12287 30-Nov-2000 10530 9929 10713 31-Dec-2000 10210 9615 10712 31-Jan-2001 11050 10280 11025 28-Feb-2001 9290 8534 9447 31-Mar-2001 8400 7606 8533 30-Apr-2001 9570 8568 9400 31-May-2001 9340 8442 9322 30-Jun-2001 9110 8246 9047 31-Jul-2001 8730 8040 8748 31-Aug-2001 7960 7382 8044 30-Sep-2001 7060 6645 7244 31-Oct-2001 7450 6994 7530 30-Nov-2001 8380 7666 8228 31-Dec-2001 8335 7652 8255
Seligman Large-Cap Growth Portfolio's largest industry weightings were technologyrelated, and these stocks performed poorly. For most of 2001, the Portfolio emphasized technology companies whose customers are individual consumers, not corporations. For most of the year, these types of companies held up relatively well against the general and sharp downturn within the technology sector, but they still detracted from overall performance. Cyclical stocks provided the greatest positive contribution to performance. Going forward, we plan to continue our emphasis on technology, but will focus on those areas that are likely to benefit from improving business spending. We are confident that the US economy will recover in 2002. We believe this recovery will be led by businesses, not by consumers. Companies will be seeking to rebuild inventories that had been reduced. This will mean increased capital investment. Businesses should also benefit from the cost-cutting measures they have taken during the recession.We believe this will be an industrial, bottom-up led recovery. SELIGMAN LARGE-CAP VALUE PORTFOLIO Negative economic news abounded during 2001-retail sales and producer prices dropped, corporate profits were weak, and unemployment reached 5.8% in December. Still, consumer spending remained generally strong during the year. Additionally, there was much positive stimulus (11 interest rate cuts by the Federal Reserve Board, lower energy prices, a federal tax cut, and increased federal spending) shaping the economic environment. The constructive influences on the economy seemed to bear fruit, as evidenced by a fourth-quarter stock market rally and by reports of an improvement in the manufacturing sector and modest GDP growth during the last three months of 2001. Value stocks tended to perform better than growth-oriented stocks in 2001. During an economic slowdown, investors often focus on strong current earnings, rather than prospects for future growth. Despite strong performance from our computer hardware holdings, Seligman Large-Cap Value Portfolio's overall performance was hurt by exposure to companies negatively impacted by the post-September 11 dropoff in commercial aviation orders. In 2001, the Portfolio's largest weightings were in banks, diversified financials, and insurance. During the bear market, financial stocks outperformed other areas, and we think this is indicative of the group's fundamental strength. We believe that large, diversified banking companies and savings and loans will benefit from the monetary stimulus enacted during 2001. Historically, an environment of moderate growth has been beneficial to financial stocks. They have also performed well as the economy emerges from a recession. [GRAPH OMITTED]
Large-Cap Russell 1000 Lipper Large Cap Date Value Portfolio Value Index Value Funds Average S&P 500 ----------- --------------- ------------ ------------------- ------- 1-May-1998 10000 10000 10000 10000 30-Jun-1998 9920 9858 9909 10126 30-Sep-1998 8050 8716 8682 9119 31-Dec-1998 9974 10164 10113 11061 31-Mar-1999 10046 10310 10261 11611 30-Jun-1999 11089 11472 11248 12430 30-Sep-1999 9427 10348 10190 11653 31-Dec-1999 9698 10911 10876 13387 31-Mar-2000 9311 10963 10882 13695 30-Jun-2000 9176 10449 10609 13330 30-Sep-2000 10670 11271 11113 13201 31-Dec-2000 12204 11677 11428 12169 31-Mar-2001 11740 10993 10745 10726 30-Jun-2001 11940 11530 11194 11354 30-Sep-2001 10414 10267 9810 9689 31-Dec-2001 11194 11024 10677 10725
The Portfolio continued to maintain a sizable position in the health care sector. While many large pharmaceutical companies may experience difficulties as they --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnotes on P-10. -P-9- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- ANNUAL PERFORMANCE OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued) come under pressure from generic drug makers, the Portfolio's focus has been on well-diversified medical product manufacturers and suppliers. Historically, health care has been less affected by the business cycle than other sectors, as it tends to offer stable earnings. We believe those companies with established, strong-selling products and services will continue to do well. We expect earnings growth to be the catalyst for higher stock prices in 2002. We think earnings should continue to benefit from the expanding use of technology in business and from rising productivity. We also think the economic recovery will be led by renewed strength in cyclicals, as companies seek to rebuild inventories.While economic growth will probably not be as robust as in the late 1990s, value stocks have the potential to excel in a moderate growth environment. As the economy recovers, we look forward to a stronger year for the Portfolio. SELIGMAN SMALL-CAP VALUE PORTFOLIO During a year in which all major equity indices delivered negative performance, Seligman Small-Cap Value Portfolio posted a strong total return. As we have noted before, small-cap stocks tend to outperform the overall market when the Federal Reserve Board is lowering interest rates, and when the economy is emerging from a downturn. Indeed, the Fed cut interest rates on eleven occasions during 2001, for a total of 475 basis points. While the economy is still weak, we believe the Portfolio's holdings benefited from the fact that investors tried to focus on the prospect of improved economic conditions. Their attention naturally turned to the superior earnings growth that characterized small companies. [GRAPH OMITTED]
Date Small Cap Value Portfolio Russell 2000 Value Index Lipper S-Cap Value Funds Average 1-May-1998 10000 10000 10000 30-Jun-1998 9150 9539 9414 30-Sep-1998 6420 7834 7509 31-Dec-1998 8300 8546 8444 31-Mar-1999 8856 7718 7654 30-Jun-1999 11910 8995 9094 30-Sep-1999 10548 8292 8446 31-Dec-1999 11226 8419 8880 31-Mar-2000 11935 8741 9296 30-Jun-2000 12018 8910 9439 30-Sep-2000 13449 9564 10118 31-Dec-2000 14931 10339 10652 31-Mar-2001 14804 10439 10763 30-Jun-2001 16709 11654 12184 30-Sep-2001 15015 10100 10554 31-Dec-2001 18443 11788 12397
The Portfolio's robust performance is attributable to several factors. The Portfolio benefited from several of its companies being taken over, including holdings in the electric utilities, basic materials, and capital goods sectors. These takeovers positively impacted the companies' stock prices, and the Portfolio was able to take profits. At the same time, 2001 continued to be a difficult year for most technology stocks, and the Portfolio's lack of emphasis in this area helped performance throughout the year. The Portfolio also benefited from a major run-up of insurance stocks in the fall, and was able to take profits here as well. After the September 11 terrorist attacks, the Portfolio added a well-run airline company whose price had been beaten down substantially. Also during the fall, the Portfolio took advantage of price weakness to purchase high-quality semiconductor and software and services stocks. During the year, the Portfolio also purchased stocks in the areas of health care equipment and supplies and machinery. Looking ahead to 2002, we believe it will be a year of recovery for stocks in general, as well as for the economy. Most companies are focused on improving their reported earnings, and we believe the market will respond favorably to signs of improved corporate profits. Small-cap stocks should continue to fare well, as investors' risk tolerance increases and valuations remain attractive. The Portfolio is positioned for the resumption of economic growth, with an emphasis on chemical and paper companies. We believe these types of companies will benefit most from a strengthening economic picture. The Portfolio has not made any major changes to investment strategy. After two years of strong total returns, we look forward to continued positive performance in 2002. --------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. + Performance data quoted represent past performance and assume all distributions are reinvested in additional shares. For certain Portfolios, the Manager is voluntarily reimbursing a portion of the Portfolio's expenses, and such reimbursement can be discontinued at any time at the Manager's discretion. Absent such reimbursement, returns would have been lower. ++ An investment in the Portfolio is subject to specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and rapid changes in political and economic conditions. -P-10-
SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (unaudited) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2001 SELIGMAN BOND PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------- ----------------- FNMA 5 1/4%, 6/15/2006 US Treasury Bonds 8 3/4%, 5/15/2020** US Treasury Notes 4 5/8%, 5/15/2006* FHLMC 5 1/4%, 12/20/2004** FHLMC 6 3/4%, 3/15/2031* FNMA 6 1/2%, 4/29/2009** US Treasury Notes 5%, 8/15/2011* Heller Financial 8%, 6/15/2005** FNMA 6%, 12/15/2005* FHLMC 5%, 5/15/2004** US Treasury Bonds 6 1/4%, 8/15/2023 General Motors Acceptance 6 3/4%, 1/15/2006** FNMA 5 1/4%, 1/15/2009* KeySpan 7 1/4%, 11/15/2005** Mercantile Bancorp 7.30%, 6/15/2007* US Airways 7.076%, 9/20/2022** General Motors Acceptance 6 7/8%, 9/15/2011* Northwest Airlines 7.041%, 4/1/2022** US Treasury Notes 3%, 11/30/2003* Lyondell Chemical 9 5/8%, 5/1/2007** ------------------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------- ----------------- Elan (ADRs)* Microchip Technology** York International* Smithfield Foods Mercury Interactive* Adelphia Communications (Class A)** Nabors Industries* TriQuint Semiconductor** JDS Uniphase* Jones Apparel Group** CNET Networks* Alpha Industries** Laboratory Corp. of America Holdings* Semtech** Intersil (Class A)* Andrx Group CIENA* Carnival (Class A)** Georgia Gulf* Thermo Electron** ------------------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------- ----------------- Philip Morris* Pitney Bowes** News Corp. (ADRs)* St. Jude Medical Sears, Roebuck* Electronic Data Systems** Air Products and Chemicals* Adelphia Communications (Class A)** Weyerhaeuser* Verizon Communications BP (ADRs)* American Home Products** Sprint PCS Group* Cisco Systems** Jabil Circuit International Business Machines Bowater* American International Group AMR* Schlumberger**
--------------- See footnotes on P-18. -P-11- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (unaudited)(continued) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2001
SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------- -------------------------------------------- Amdocs Microchip Technology** Electronic Data Systems* Integrated Device Technology** Comcast (Class A)* Symantec Check Point Software Technologies* Analog Devices** Convergys Lattice Semiconductor THQ* Sanmina-SCI Comverse Technology* Polycom** Peregrine Systems Novellus Systems** Clear Channel Communications Advanced Micro Devices Mercury Interactive* Autodesk -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------- -------------------------------------------- Chesapeake Energy* Orion Power Holdings** Pioneer Natural Resources* Caremark Rx** XTO Energy Cytyc** Spinnaker Exploration Western Wireless (Class A) LifePoint Hospitals* Metris Companies Patterson-UTI Energy* Cooper Cameron** Manor Care Advent Software Schein (Henry)* AirGate PCS Smith International* Copart Apria Healthcare Group* Price Communications** -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------- -------------------------------------------- Honeywell International* Comcast (Class A)** CIENA* Coca-Cola** Microsoft* AOL Time Warner Vivendi Universal* Orange** Hilton Hotels* Canon** Vodafone Group* Philip Morris International Business Machines* Mediolanum** Swiss Re* Starwood Hotels & Resorts Worldwide Lilly (Eli)* Symbol Technologies** Man Group* Jones Apparel Group**
--------------- See footnotes on P-18. -P-12- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*** DECEMBER 31, 2001 SELIGMAN GLOBAL GROWTH PORTFOLIO PERCENT OF NET ASSETS DECEMBER 31, -------------- ISSUES COST VALUE 2001 2000 ------ ---------- ---------- ------ ------ COMMON STOCKS Automobiles and Components . . . . . 4 $ 174,574 $ 171,200 3.7% 1.9% Banks. . . . . . . . . . . . . . . . 8 379,452 389,262 8.4 4.0 Capital Goods. . . . . . . . . . . . 3 254,310 295,898 6.4 6.2 Chemicals .. . . . . . . . . . . . . - - - - 1.7 Commercial Services and Supplies . . 3 81,786 67,476 1.5 - Communications Equipment . . . . . . 5 303,908 277,207 5.9 7.5 Computer and Peripherals . . . . . . 1 49,959 60,480 1.3 - Consumer Durables and Apparel. . . . 1 71,977 95,608 2.0 3.2 Consumer Staples . . . . . . . . . . 9 339,654 358,631 7.7 10.6 Diversified Financials . . . . . . . 7 333,618 290,407 6.2 4.5 Electronic Equipment and Instruments 4 75,578 60,278 1.3 4.3 Energy . . . . . . . . . . . . . . . 1 24,271 29,691 0.6 1.4 Health Care .. . . . . . . . . . . . 14 766,768 856,552 18.4 14.6 Hotels, Restaurants and Leisure. . . 2 69,413 65,448 1.4 - Insurance. . . . . . . . . . . . . . 4 219,659 189,986 4.1 5.8 Leisure Equipment and Products . . . 1 32,669 35,035 0.7 - Media. . . . . . . . . . . . . . . . 4 195,887 176,507 3.8 4.5 Metals and Mining. . . . . . . . . . 4 114,323 116,865 2.5 - Paper and Forest Products. . . . . . 1 49,351 53,053 1.1 - Retailing. . . . . . . . . . . . . . 2 131,063 133,077 2.9 0.7 Semiconductors . . . . . . . . . . . 4 259,198 246,652 5.3 2.3 Software and Services. . . . . . . . 7 260,903 253,772 5.4 3.1 Telecommunication Services . . . . . 5 156,833 142,734 3.1 11.6 Textiles and Apparel . . . . . . . . 1 28,200 32,544 0.7 1.1 Transportation . . . . . . . . . . . 1 34,853 30,972 0.7 1.8 Utilities. . . . . . . . . . . . . . 2 75,823 72,613 1.5 2.4 ------ ---------- ---------- ------ ------ 98 4,484,030 72,613 96.6 93.2 Other Assets Less Liabilities. . . . - 157,020 157,020 3.4 6.8 ------ ---------- ---------- ------ ------ NET ASSETS . . . . . . . . . . . . . 98 $4,641,050 $4,658,968 100.0% 100.0% ====== ========== ========== ====== ======
-------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ DURING THE SIX MONTHS ENDED DECEMBER 31, 2001 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------------------- -------------------------------- Chesapeake Energy* Orion Power Holdings** Pioneer Natural Resources* Xansa Campari Group* Caremark Rx** XTO Energy Interserve New Skies Satellites* PizzaExpress Spinnaker Exploration Clinton Cards** Actividades de Construccion y Servicios "ACS"* Cytyc** LifePoint Hospitals* Western Wireless (Class A) International Game Technology* Parity** Omega Pharma* Bergen Brunswig (Class A)**
--------------- See footnotes on page P-18. -P-13- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (unaudited) (continued) --------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*** DECEMBER 31, 2001 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO PERCENT OF NET ASSETS DECEMBER 31, -------------- ISSUES COST VALUE 2001 2000 ------ ----------- ----------- ------ ------ COMMON STOCKS Automobiles and Components . . . . . 1 $ 29,036 $ 61,064 0.6% 2.0% Capital Goods. . . . . . . . . . . . 16 738,756 633,624 6.3 7.6 Chemicals. . . . . . . . . . . . . . 2 150,302 105,554 1.1 1.2 Commercial Services and Supplies . . 24 1,304,745 1,350,133 13.5 9.7 Communications Equipment . . . . . . 5 110,774 90,907 0.9 3.2 Consumer Durables and Apparel. . . . 7 330,355 380,221 3.8 2.5 Consumer Staples . . . . . . . . . . 13 489,400 462,821 4.6 2.1 Containers and Packaging . . . . . . 1 44,987 31,257 0.3 0.6 Diversified. . . . . . . . . . . . . 1 76,199 85,736 0.9 - Electronic Equipment and Instruments 11 384,851 286,047 2.9 2.5 Energy . . . . . . . . . . . . . . . 9 695,126 765,025 7.6 3.1 Financials . . . . . . . . . . . . . 19 522,733 653,790 6.5 9.0 Health Care Equipment and Supplies . 10 253,533 285,152 2.8 - Health Care Providers and Services . 14 1,052,884 1,045,024 10.4 8.9 Hotels, Restaurants and Leisure. . . 14 534,851 594,231 5.9 4.7 Media. . . . . . . . . . . . . . . . 6 333,884 280,410 2.8 3.7 Metals and Mining. . . . . . . . . . 2 22,293 22,941 0.2 0.3 Pharmaceuticals and Biotechnology. . 23 593,431 649,445 6.5 5.8 Real Estate .. . . . . . . . . . . . 1 28,421 49,733 0.5 - Retailing. . . . . . . . . . . . . . 16 553,401 487,072 4.9 3.1 Semiconductor Equipment and Products 11 345,988 272,948 2.7 0.1 Software and Services. . . . . . . . 11 367,152 370,879 3.7 11.7 Telecommunication Services . . . . . 6 508,815 388,811 3.9 7.4 Transportation . . . . . . . . . . . 6 239,811 293,210 2.9 2.4 Utilities. . . . . . . . . . . . . . 1 14,974 15,235 0.2 0.4 ------ ----------- ----------- ------ ------ 230 9,726,702 9,661,270 96.4 92.0 Other Assets Less Liabilities. . . . - 356,166 356,166 3.6 8.0 ------ ----------- ----------- ------ ------ NET ASSETS . . . . . . . . . . . . . 230 $10,082,868 $10,017,436 100.0% 100.0% ====== =========== =========== ====== ======
--------------- See footnotes on page P-18. -P-14- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES- DURING THE SIX MONTHS ENDED DECEMBER 31, 2001 SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------- -------------------------------------------- Microsoft* Microchip Technology** Amdocs Polycom** Synopsys Korea Telecom (ADRs)** Check Point Software Technologies* Asustek Computer** LG TeleCom* Novellus Systems** Toshiba* Altran Technologies** Sabre Holdings (Class A)* Integrated Device Technology** Samsung SDI* HOYA** Pace Micro Technology* Murata Manufacturing** UTStarcom* TietoEnator**
--------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*** DECEMBER 31, 2001 SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO PERCENT OF NET ASSETS DECEMBER 31, -------------- ISSUES COST VALUE 2001 2000 ------ ----------- ----------- ------ ------ COMMON STOCKS Application Software . . . . . . . . 6 $ 2,572,305 $ 2,457,349 11.3% 8.8% Capital Goods. . . . . . . . . . . . 2 313,050 279,808 1.3 8.3 Commercial Services and Supplies . . - - - - 1.8 Communications Equipment . . . . . . 7 1,538,281 1,535,907 7.1 2.8 Computers and Peripherals. . . . . . 4 1,501,201 1,349,044 6.2 4.6 Consumer Durables and Apparel. . . . - - - - 1.3 Electronic Equipment and Instruments 17 4,527,699 4,172,038 19.2 14.8 Health Care. . . . . . . . . . . . . - - - - 1.9 Internet Software and Services.. . . 1 314,712 327,139 1.5 2.3 IT Consulting and Services . . . . . 10 3,152,169 3,350,099 15.4 16.4 Semiconductor Equipment. . . . . . . 7 2,221,248 1,711,052 7.9 10.6 Semiconductors . . . . . . . . . . . 9 1,178,358 1,294,205 5.9 7.1 Systems Software . . . . . . . . . . 2 1,453,579 1,520,798 7.0 - Telecommunication Services . . . . . 3 504,263 547,728 2.5 4.3 ------ ----------- ----------- ------ ------ 68 19,276,865 18,545,167 85.3 85.0 Other Assets Less Liabilities - 3,206,920 3,206,920 14.7 15.0 ------ ----------- ----------- ------ ------ NET ASSETS . . . . . . . . . . . . . 68 $22,483,785 $21,752,087 100.0% 100.0% ====== =========== =========== ====== ======
--------------- See footnotes on page P-18. -P-15- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (unaudited) (continued) --------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES- DURING THE SIX MONTHS ENDED DECEMBER 31, 2001 SELIGMAN HIGH-YIELD BOND PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------------------- ---------------------------------------------------- Park Place Entertainment 93/8%, 2/15/2007* Price Communications Wireless 113/4%, 7/15/2007** Chesapeake Energy 83/8%, 11/1/2008* Trump Hotels & Resorts Funding 151/2%, 6/15/2005** Echostar 91/8%, 1/15/2009* Ameristar Casinos 103/4%, 2/15/2009** Mandalay Resort Group 93/8%, 2/15/2010* Powertel 111/8%, 6/1/2007 American Tower 93/8%, 2/1/2009* Centennial Cellular 103/4%, 12/15/2008 Station Casinos 97/8%, 7/1/2010 Liberty Group Operting 93/8%, 2/1/2008** Host Marriot 91/2%, 1/15/2007* Affinity Group Holding 11%, 4/1/2007 Spanish Broadcasting System 95/8%, 11/1/2009* Liberty Group Publishing 0% (11 5/8%), 2/15/2009** Host Marriot 83/8%, 2/15/2006* Iron Age 97/8%, 5/1/2008** Crown Castle International 1%, 11/15/2007* Northland Cable Television 101/4%, 11/15/2007** ---------------------------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------------------- ---------------------------------------------------- General Electric Pitney Bowes** Viacom (Class A) US Treasury Notes 6 1/2%, 10/15/2006** Principal Financial Group (The)* Adelphia Communications (Class A)** Clear Channel Communications Electronic Data Systems** Xilinx American Home Products** Pfizer St. Jude Medical Fannie Mae* Cisco Systems** Kraft Foods (Class A) State Street Bank & Trust 7.65%, 6/15/2010** Masco FHLMC 6 7/8%, 9/15/2010** Johnson & Johnson Verizon Communications ---------------------------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ---------------------------------------------- ---------------------------------------------------- Vivendi Universal* Orange** Vodafone Group* Mediolanum** Elan (ADRs)* ING Groep** Swiss Re* Empresa Brasileira de Aeronautica "Embraer" (ADRs)** Bank of Ireland* Porsche (non-Voting)** Man Group* Novartis Westpac Banking* WPP Group** Allianz* Sony** Nokia Centrica Toyota Motor* Scottish Power**
--------------- See footnotes on page P-18. -P-16- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
DIVERSIFICATION OF NET ASSETS*** DECEMBER 31, 2001 SELIGMAN INTERNATIONAL GROWTH PORTFOLIO PERCENT OF NET ASSETS DECEMBER 31, -------------- ISSUES COST VALUE 2001 2000 ------ ---------- ---------- ------ ------ COMMON STOCKS Automobiles and Components . . . . . 4 $ 275,805 $ 272,335 5.7% 3.8% Banks. . . . . . . . . . . . . . . . 9 586,942 614,146 12.8 7.0 Capital Goods. . . . . . . . . . . . 1 96,000 87,140 1.8 8.4 Chemicals. . . . . . . . . . . . . . - - - - 3.1 Commercial Services and Supplies . . 3 126,960 105,107 2.2 0.5 Communications Equipment . . . . . . 3 136,878 167,799 3.5 0.9 Consumer Durables and Apparel. . . . - - - - 4.6 Consumer Staples . . . . . . . . . . 8 460,541 474,790 9.9 7.6 Diversified Financials . . . . . . . 7 384,368 302,963 6.3 5.2 Electronic Equipment and Instruments 4 132,330 107,408 2.3 2.9 Energy . . . . . . . . . . . . . . . 4 364,383 334,937 7.0 6.1 Health Care .. . . . . . . . . . . . 9 597,831 579,834 12.1 12.0 Hotels, Restaurants and Leisure. . . - - - - 1.1 Insurance. . . . . . . . . . . . . . 4 366,169 327,727 6.8 7.6 Leisure Equipment and Products . . . 1 49,004 52,553 1.1 - Media. . . . . . . . . . . . . . . . 3 208,315 208,245 4.3 3.0 Metals and Mining. . . . . . . . . . 4 175,393 178,729 3.7 0.9 Paper and Forest Products. . . . . . 1 77,111 82,895 1.7 1.1 Retailing. . . . . . . . . . . . . . 1 58,765 56,645 1.2 1.2 Semiconductors . . . . . . . . . . . 2 63,682 63,039 1.3 - Software and Services. . . . . . . . 4 190,689 168,038 3.5 2.5 Telecommunication Services . . . . . 5 297,585 252,564 5.3 11.3 Textiles and Apparel . . . . . . . . 1 45,826 52,884 1.1 2.4 Transportation . . . . . . . . . . . 1 51,615 45,858 1.0 1.9 Utilities. . . . . . . . . . . . . . 3 179,612 167,099 3.5 3.1 82 4,925,804 4,702,735 98.1 98.2 Other Assets Less Liabilities. . . . - 90,353 90,353 1.9 1.8 ------ ---------- ---------- ------ ------ NET ASSETS 82 $5,016,157 $4,793,088 100.0% 100.0% ====== ========== ========== ====== ======
--------------- See footnotes on page P-18. -P-17- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (unaudited) (continued) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED DECEMBER 31, 2001 SELIGMAN LARGE-CAP GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------------------------- --------------------------------------- Honeywell International* Microchip Technology** Tyco International Comcast (Class A)** Dow Chemical* Maxim Integrated Products** Lilly (Eli) Analog Devices** Computer Associates International* Philip Morris Elan (ADRs)* Verizon Communications** Delta Air Lines* GAP** AES Merck** Hilton Hotels* American Home Products** Clear Channel Communications* AOL Time Warner -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------------------------- --------------------------------------- Transocean Sedco Forex* Safeway** El Paso Qwest Communications International** Dynegy* Humana** Bank of New York Edison International** Boeing Kimberly-Clark Goodrich (B.F.) ChevronTexaco Radio Shack St. Paul Companies Ford Motor JPMorgan Chase Bank Fannie Mae Medtronic FleetBoston Financial Philip Morris -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO LARGEST PURCHASES LARGEST SALES --------------------------------------- --------------------------------------- Edwards Lifesciences* Sensormatic Electronics** Agere Systems (Class A)* Dal-Tile International** Allmerica Financial* Jack in the Box** Stewart & Stevenson Services Orion Power Holdings** Sierra Pacific Resources* Cutter & Buck** Abercrombie & Fitch (Class A) Lamson & Sessions** Mutual Risk Management Westvaco* PMI Group (The) Korn/Ferry International --------------- + Largest portfolio changes from the previous period to the current period are based on cost of purchases and proceeds from sales of securities, listed in descending order. * Position added during the period. ** Position eliminated during the period. *** "Diversification of Net Assets" is included for the Seligman International Portfolios because their portfolio holdings are listed by country rather than by industry in the "Portfolios of Investments." -P-18- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS DECEMBER 31,2001 -------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO
PRINCIPAL AMOUNT VALUE ---------- ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES - 53.5% US GOVERNMENT SECURITIES - 20.2% US Treasury Bonds: 71/4%, 8/15/2022 . . . . . . . . . $ 200,000 $ 235,438 61/4%, 8/15/2023 . . . . . . . . . 475,000 502,981 61/4%, 5/15/2030 . . . . . . . . . 70,000 75,849 US Treasury Notes: 3%, 11/30/2003 . . . . . . . . . . 90,000 90,091 71/4%, 5/15/2004 . . . . . . . . . 100,000 108,734 45/8%, 5/15/2006 . . . . . . . . . 265,000 268,778 6%, 8/15/2009. . . . . . . . . . . 20,000 21,327 5%, 8/15/2011. . . . . . . . . . . 130,000 129,716 ---------- Total US Government Securities (Cost $1,421,869) 1,432,914 ---------- AGENCY SECURITIES - 18.3% FHLMC: 51/2%, 7/15/2006 . . . . . . . . . 75,000 77,154 6.22%, 3/18/2008 . . . . . . . . . 75,000 77,805 65/8%, 9/15/2009 . . . . . . . . . 70,000 74,634 57/8%, 3/21/2011 . . . . . . . . . 80,000 79,630 63/4%, 3/15/2031 . . . . . . . . . 125,000 133,336 FNMA: 61/2%, 8/15/2004 . . . . . . . . . 100,000 107,048 6%, 12/15/2005 . . . . . . . . . . 125,000 131,594 51/4%, 6/15/2006 . . . . . . . . . 430,000 438,168 43/4%, 1/2/2007. . . . . . . . . . 80,000 79,551 51/4%, 1/15/2009 . . . . . . . . . 100,000 99,141 ---------- Total Agency Securities (Cost $1,298,704). 1,298,061 ---------- PRINCIPAL AMOUNT VALUE ---------- ---------- MORTGAGE-BACKED SECURITIES- - 15.0% FHLMC GOLD: 6%, 11/1/2010. . . . . . . . . . . 51,431 52,355 71/2%, 10/1/2017 . . . . . . . . . 47,415 49,426 8%, 12/1/2023. . . . . . . . . . . 29,004 30,869 MORTGAGE-BACKED SECURITIES- (continued) FNMA: 81/2%, 10/1/2015 . . . . . . . . . $ 61,793 $ 65,478 6%, 5/1/2016 . . . . . . . . . . . 71,135 71,379 61/2%, 5/1/2018. . . . . . . . . . 59,981 60,873 7%, 10/1/2020. . . . . . . . . . . 37,193 38,131 8%, 6/1/2028 . . . . . . . . . . . 32,140 34,042 6%, 9/1/2028 . . . . . . . . . . . 100,803 99,311 6%, 12/1/2028. . . . . . . . . . . 152,704 150,442 7%, 12/1/2029. . . . . . . . . . . 44,604 45,540 GNMA: 61/2%, 12/15/2028. . . . . . . . . 221,666 223,012 6%, 12/20/2028 . . . . . . . . . . 150,015 146,748 ---------- Total Mortgage-Backed Securities (Cost $1,053,006) 1,067,606 ---------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $3,773,579) 3,798,581 ---------- CORPORATE BONDS - 30.5% Abbott Laboratories 5 1/8%, 7/1/2006 . . . . . . . . . . . . . 60,000 61,703 American General 7 1/2%, 8/11/2010. . . . . . . . . . . . . 75,000 82,422 Ashland 6.86%, 5/1/2009. . . . . . 40,000 40,016 Associates Corp. of North America 6.95%, 11/1/2018 . . . . . . . . . 75,000 77,402 Bank of America 4 3/4%, 10/15/2006 . . . . . . . . . . . . 85,000 83,310 Bank One Texas 6 1/4%, 2/15/2008. . . . . . . . . . . . . 50,000 50,938 Bellsouth 5%, 10/15/2006 . . . . . 60,000 59,619 Capital One Bank 6 7/8%, 2/1/2006 . . . . . . . . . . . . . 60,000 58,589 Cinergy 6 1/4%, 9/1/2004. . . . . . 50,000 50,344 Coastal 7 5/8%, 9/1/2008. . . . . . 60,000 61,594 CSC Holdings 7 1/4%, 7/15/2008. . . . . . . . . . . . . 100,000 99,169 Emerson Electric 5 3/4%, 11/1/2011. . . . . . . . . . . . . 60,000 58,247
--------------- + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements. -P-19- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- ---------- CORPORATE BONDS (continued) FleetBoston Financial 4 7/8%, 12/1/2006. . . . . . . . . . . . . . $ 75,000 $ 73,390 Florida Power & Light 6%, 6/1/2008 . . . . . . . . . . . . . . 30,000 30,247 Ford Motor 7.45%, 7/16/2031. . . . . 40,000 36,751 General Electric Capital 6 1/2%, 12/10/2007 . . . . . . . . . . . . . 75,000 79,784 General Motors Acceptance 6 7/8%, 9/15/2011. . . . . . . . . . . . . . 100,000 98,127 GTE California 6.70%, 9/1/2009 60,000 61,861 GTE North 5.65%, 11/15/2008 . 75,000 73,689 Household Finance 6 1/2%, 11/15/2008 . . . . . . . . . . . . . 100,000 99,985 International Lease Finance 5 1/2%, 6/7/2004 . . . . . . . . . . . . . . 80,000 81,637 Kohl's 7 1/4%, 6/1/2029 . . . . . . . 50,000 52,840 Mercantile Bancorp 7.30%, 6/15/2007. . . . . . . . . . . . . . 90,000 96,603 Morgan Stanley Group 6 3/4%, 4/15/2011. . . . . . . . . . . . . . 75,000 76,862 National Rural Utilities 6%, 5/15/2006. . . . . . . . . . . . . . 120,000 122,021 Ocean Energy 8 1/4%, 7/1/2018 . . . . 60,000 63,450 Pitney Bowes 5 3/4%, 8/15/2008 . . . . 50,000 49,845 PNC Funding 5 3/4%, 8/1/2006 . . . . . 75,000 76,158 Qwest Communications 7 1/2%, 11/1/2008. . . . . . . . . . . . . . 75,000 75,936 Target 5.40%, 10/1/2008. . . . . . . . 50,000 49,448 WorldCom 7 3/4%, 4/1/2027. . . . . . . 80,000 82,882 ---------- TOTAL CORPORATE BONDS (Cost $2,164,969) 2,164,869 ---------- PRINCIPAL AMOUNT VALUE ---------- ---------- ASSET-BACKED SECURITIES+ - 3.0% Peco Energy Transition Trust 6.05%, 3/1/2009. . . . . . . . . . . $ 100,000 $ 103,661 PP&L Transition 6.83%, 3/25/2007. . . . . . . . . . . . . . 75,000 79,756 United Air Lines 7.032%, 10/1/2010. . . . . . . . . . . . . . 35,999 34,252 ---------- TOTAL ASSET-BACKED SECURITIES (Cost $210,889) 217,669 ---------- FOREIGN GOVERNMENT SECURITIES - 1.1% (Cost $84,843) Quebec Province Canada 7 1/2% 9/15/2029. . . . . . . . . . . . . . 70,000 78,323 ---------- REPURCHASE AGREEMENT - 10.9% (Cost $775,000) State Street Bank & Trust, 1.60%, dated 12/31/2001, maturing 1/2/2002, collateralized by: $810,000 US Treasury Bills, 6/20/2002, with a fair market value of $803,115. . . . . . . . . . 775,000 775,000 ---------- TOTAL INVESTMENTS - 99.0% (Cost $7,009,280) 7,034,442 OTHER ASSETS LESS LIABILITIES - 1.0% 68,138 ---------- NET ASSETS - 100.0% $7,102,580 ==========
--------------- + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements. -P-20- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS - 98.7% AUTOMOBILES AND COMPONENTS - 2.9% Gentex*. . . . . . . . . . . . 14,800 $ 395,826 Harley-Davidson. . . . . . . . 7,900 429,049 ---------- 824,875 ---------- CAPITAL GOODS - 7.6% AstroPower*. . . . . . . . . . 7,200 291,024 Mettler-Toledo International* (Switzerland). . . . . . . . 19,900 1,031,815 SPX. . . . . . . . . . . . . . 1,400 191,660 York International . . . . . . 16,600 632,958 ---------- 2,147,457 ---------- CHEMICALS - 3.4% Georgia Gulf . . . . . . . . . 26,600 492,100 Millipore. . . . . . . . . . . 7,600 461,320 ---------- 953,420 ---------- COMMERCIAL SERVICES AND SUPPLIES - 2.5% Robert Half International* . . 14,000 373,800 ServiceMaster. . . . . . . . . 12,000 165,600 Steiner Leisure* . . . . . . . 7,300 154,870 ---------- 694,270 ---------- COMMUNICATIONS EQUIPMENT - 7.5% CIENA* . . . . . . . . . . . . 29,600 423,724 Juniper Networks*. . . . . . . 7,300 138,408 NetScreen Technologies . . . . 300 6,638 Research In Motion* (Canada) . 25,800 612,105 RF Micro Devices*. . . . . . . 24,200 465,124 Scientific-Atlanta . . . . . . 19,800 474,012 ---------- 2,120,011 ---------- COMPUTERS AND PERIPHERALS - 1.9% Network Appliance* . . . . . . 24,800 542,500 ---------- SHARES VALUE ------ ---------- CONSUMER DURABLES AND APPAREL - 4.3% Coach* . . . . . . . . . . . . 11,100 $ 432,678 Mattel . . . . . . . . . . . . 30,200 519,440 Mohawk Industries* . . . . . . 4,600 252,448 ---------- 1,204,566 ---------- CONSUMER STAPLES - 2.5% Pepsi Bottling Group . . . . . 12,500 293,750 Smithfield Foods*. . . . . . . 18,100 398,924 ---------- 692,674 ---------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 6.9% Diebold. . . . . . . . . . . . 11,000 444,840 JDS Uniphase*. . . . . . . . . 67,400 584,695 Symbol Technologies. . . . . . 30,400 482,752 Waters*. . . . . . . . . . . . 11,400 441,750 ---------- 1,954,037 ---------- ENERGY - 2.2% Nabors Industries* . . . . . . 17,700 607,641 FINANCIALS - 3.2% AFLAC. . . . . . . . . . . . . 22,900 562,424 ChoicePoint* . . . . . . . . . 6,400 324,416 ---------- 886,840 ---------- HEALTH CARE - 7.2% Andrx Group* . . . . . . . . . 4,100 288,763 DJ Orthopedics*. . . . . . . . 23,900 317,870 Laboratory Corp. of America Holdings*. . . . . . 7,500 606,375 Quest Diagnostics* . . . . . . 6,600 473,286 Quintiles Transnational* . . . 21,900 351,385 ---------- 2,037,679 ---------- HOTELS, RESTAURANTS AND LEISURE - 2.0% P.F. Chang's China Bistro* . . 5,600 264,852 Starwood Hotels & Resorts Worldwide. . . . . . 10,300 307,455 ---------- 572,307 ---------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-21- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO (continued)
SHARES VALUE ------ ----------- MEDIA - 2.1% Lamar Advertising* . . . . . . 3,700 $ 156,473 TMP Worldwide* . . . . . . . . 10,200 437,631 ----------- 594,104 ----------- PHARMACEUTICALS AND BIOTECHNOLOGY - 10.4% Elan (ADRs)* (Ireland) . . . . 18,000 811,080 First Horizon Pharmaceutical*. 3,800 111,663 Gilead Sciences* . . . . . . . 4,000 262,900 ICN Pharmaceuticals. . . . . . 7,600 254,600 InterMune* . . . . . . . . . . 3,400 167,467 Invitrogen*. . . . . . . . . . 4,600 284,901 IVAX*. . . . . . . . . . . . . 13,000 261,820 MedImmune*.. . . . . . . . . . 13,500 625,455 NPS Pharmaceuticals* . . . . . 3,700 141,765 ----------- 2,921,651 ----------- RETAILING - 7.4% Bed Bath & Beyond* . . . . . . 8,100 274,549 Chico's FAS* . . . . . . . . . 6,300 250,110 Foot Locker* . . . . . . . . . 28,300 442,895 Staples* . . . . . . . . . . . 39,500 738,848 Williams-Sonoma* . . . . . . . 8,700 373,230 ----------- 2,079,632 ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 6.4% Broadcom (Class A)*. . . . . . 6,000 245,250 Intersil (Class A)*. . . . . . 14,900 482,313 Micrel*. . . . . . . . . . . . 21,000 550,935 QLogic . . . . . . . . . . . . 11,800 525,159 ----------- 1,803,657 ----------- SHARES VALUE ------ ----------- SOFTWARE AND SERVICES - 14.8% Alloy* . . . . . . . . . . . . 5,100 $ 109,828 CNET Networks* . . . . . . . . 71,600 641,178 Computer Associates International. . . . . . . . 15,800 544,942 Internet Security Systems* . . 17,300 554,984 Mercury Interactive* . . . . . 20,800 706,888 Openwave Systems*. . . . . . . 27,207 266,492 Siebel Systems*. . . . . . . . 16,500 461,835 VeriSign*. . . . . . . . . . . 8,500 323,553 VERITAS Software*. . . . . . . 12,200 546,987 ----------- 4,156,687 ----------- TRANSPORTATION - 3.5% Expeditors International of Washington. . . . . . . . 5,300 301,862 C.H. Robinson Worldwide. . . . 8,300 240,243 SkyWest. . . . . . . . . . . . 17,500 446,163 ----------- 988,268 ----------- TOTAL INVESTMENTS - 98.7% (Cost $25,332,373) 27,782,276 OTHER ASSETS LESS LIABILITIES - 1.3% 359,517 ----------- NET ASSETS - 100.0% $28,141,793 =========== --------------- * Non-income producing security. See Notes to Financial Statements.
-P-22- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO
ANNUALIZED YIELD ON PURCHASE PRINCIPAL DATE AMOUNT VALUE ------------ ---------- ------------ COMMERCIAL PAPER - 22.1% AIG Funding, 1/9/2002. 1.98% $ 700,000 $ 699,697 American Express Credit, 1/22/2002. . . . . . . . . . 2.05 700,000 699,175 General Electric Capital, 1/11/2002. . . . . . . . . . 2.07 700,000 699,603 Wells Fargo Financial, 2/19/2002. . . . . . . . . . 1.83 600,000 598,530 ------------ TOTAL COMMERCIAL PAPER (Cost $2,697,005) 2,697,005 ------------ US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES - 49.1% US GOVERNMENT SECURITIES - 8.2% (Cost $997,947) US Treasury Bills, 2/14/2002. . . . . . . . . . 1.70 1,000,000 997,947 ------------ US GOVERNMENT AGENCY SECURITIES - 40.9% Federal Agricultural Mortgage, 1/7/2002 . 2.23 1,000,000 999,633 Federal Farm Credit Bank,1/3/2002. . . . . . . . 1.79 1,000,000 999,902 Federal Home Loan Bank,1/18/2002 . . . . . . . 1.97 1,000,000 999,084 Federal Home Loan Mortgage,1/2/2002 .. . . . . 2.04 1,000,000 999,944 Federal National Mortgage Association, 2/7/2002 . . . . . . . . . . 1.72 1,000,000 998,253 ------------ Total US Government Agency Securities (Cost $4,996,816) 4,996,816 ------------ ANNUALIZED YIELD ON PURCHASE PRINCIPAL DATE AMOUNT VALUE ------------ ---------- ------------ TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $5,994,763) $ 5,994,763 ------------ REPURCHASE AGREEMENT - 24.3% (Cost $2,970,000) State Street Bank & Trust, 1.60%, dated 12/31/2001, maturing 1/2/2002, collateralized by: $3,090,000 US Treasury Bills, 6/20/2002, with a fair market value of $3,063,735 . . . . . . . . . 1.62% $2,970,000 2,970,000 ------------ FIXED TIME DEPOSIT - 4.9% (Cost $600,000) BNP Paribas, Grand Cayman, 1/2/2002 . . . . . . 1.96 600,000 600,000 ------------ TOTAL INVESTMENTS - 100.4% (Cost $12,261,768) 12,261,768 OTHER ASSETS LESS LIABILITIES - (0.4)% (50,606) ------------ NET ASSETS - 100.0% . $12,211,162 ============
--------------- See Notes to Financial Statements. -P-23- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS - 98.4% CAPITAL GOODS - 7.2% General Electric. . . . . . . . . 21,250 $ 851,700 Masco . . . . . . . . . . . . . . 5,990 146,755 United Technologies . . . . . . . 10,970 708,991 ---------- 1,707,446 ---------- CHEMICALS - 1.7% Air Products and Chemicals. . . . 8,740 409,993 ---------- COMMUNICATIONS EQUIPMENT - 1.3% QUALCOMM* . . . . . . . . . . . . 6,280 316,983 ---------- COMPUTERS AND PERIPHERALS - 3.1% Compaq Computer . . . . . . . . . 15,980 155,965 EMC*. . . . . . . . . . . . . . . 11,710 157,382 International Business Machines 3,590 434,246 ---------- 747,593 ---------- CONSUMER STAPLES - 5.6% Coca-Cola . . . . . . . . . . . . 4,820 227,263 Kraft Foods (Class A)*. . . . . . 10,190 346,766 PepsiCo . . . . . . . . . . . . . 5,550 270,229 Philip Morris . . . . . . . . . . 10,420 477,757 ---------- 1,322,015 ---------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 1.0% Jabil Circuit* .. . . . . . . . . 9,990 226,973 ---------- ENERGY - 6.9% Baker Hughes. . . . . . . . . . . 4,360 159,009 BP (ADRs) (United Kingdom). . . . 6,100 283,711 ChevronTexaco . . . . . . . . . . 1,680 150,545 Exxon Mobil . . . . . . . . . . . 20,070 788,751 Royal Dutch Petroleum (NY Shares) (Netherlands) . . . . 5,230 256,375 ---------- 1,638,391 ---------- SHARES VALUE ------ ---------- FINANCIALS - 16.9% American International Group. . . 7,820 620,908 Bank of America . . . . . . . . . 3,080 193,886 Bank of New York. . . . . . . . . 11,200 456,960 Chubb . . . . . . . . . . . . . . 7,430 512,670 Citigroup . . . . . . . . . . . . 13,690 691,071 Fannie Mae. . . . . . . . . . . . 9,720 772,740 Merrill Lynch . . . . . . . . . . 4,600 239,752 FINANCIALS (continued) Principal Financial Group (The)* 3,510 $ 84,240 XL Capital (Class A) (Bermuda) 4,930 450,405 ---------- 4,022,632 ---------- HEALTH CARE - 13.9% Abbott Laboratories . . . . . . . 7,400 412,550 Baxter International. . . . . . . 13,260 711,134 Bristol-Myers Squibb. . . . . . . 4,580 233,580 Genentech*. . . . . . . . . . . . 2,840 154,070 Johnson & Johnson . . . . . . . . 7,520 444,432 Pfizer. . . . . . . . . . . . . . 15,510 618,073 St. Jude Medical. . . . . . . . . 9,220 715,933 ---------- 3,289,772 ---------- HOTELS, RESTAURANTS AND LEISURE- 0.9% Starwood Hotels & Resorts Worldwide . . . . . . . . . . . 7,220 215,517 ---------- MEDIA - 6.7% AOL Time Warner*. . . . . . . . . 8,820 283,122 Clear Channel Communications* 3,000 152,730 Comcast (Class A)*. . . . . . . . 10,120 364,371 Interpublic Group of Companies (The) . . . . . . . . 4,650 137,361 News Corp. (ADRs) (Australia) . . 15,260 485,421 Viacom (Class B)* . . . . . . . . 3,970 175,276 ---------- 1,598,281 ---------- PAPER AND FOREST PRODUCTS - 2.7% Bowater . . . . . . . . . . . . . 5,320 253,764 Weyerhaeuser. . . . . . . . . . . 7,210 389,917 ---------- 643,681 ---------- RETAILING - 9.0% Costco Wholesale* . . . . . . . . 6,850 304,072 Home Depot (The). . . . . . . . . 5,680 289,737 Limited (The) . . . . . . . . . . 15,800 232,576 May Department Stores . . . . . . 7,440 275,131 Sears, Roebuck. . . . . . . . . . 9,740 464,014 Wal-Mart Stores . . . . . . . . . 9,990 574,925 ---------- 2,140,455 ---------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 7.8% Agere Systems (Class A)*. . . . . 47,300 269,137 Analog Devices* . . . . . . . . . 8,240 365,774 Intel . . . . . . . . . . . . . . 16,830 529,219 Micron Technology . . . . . . . . 4,780 148,180 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-24- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued)
SHARES VALUE ------ ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS (continued) Novellus Systems*. . . . . . 5,590 $ 220,665 Xilinx*. . . . . . . . . . . 8,160 318,566 ----------- 1,851,541 ----------- SOFTWARE AND SERVICES - 5.7% Citrix Systems*. . . . . . . 6,220 140,976 Microsoft* . . . . . . . . . 14,060 931,545 Oracle*. . . . . . . . . . . 10,600 146,439 VERITAS Software*. . . . . . 3,010 134,953 ----------- 1,353,913 ----------- TELECOMMUNICATION SERVICES - 5.6% AT&T . . . . . . . . . . . . 10,970 198,996 SBC Communications . . . . . 12,598 493,464 Sprint FON Group . . . . . . 7,480 150,198 SHARES VALUE ------ ----------- TELECOMMUNICATION SERVICES (continued) Sprint PCS Group*. . . . . . 10,620 $ 259,234 Verizon Communications . . . 4,772 226,479 ----------- 1,328,371 ----------- TRANSPORTATION - 1.2% AMR. . . . . . . . . . . . . 12,330 273,356 ----------- UTILITIES - 1.2% El Paso. . . . . . . . . . . 6,574 293,266 ----------- TOTAL INVESTMENTS - 98.4% (Cost $21,495,335) 23,380,179 OTHER ASSETS LESS LIABILITIES - 1.6% 375,687 ----------- NET ASSETS - 100.0% $23,755,866 ===========
-------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
SHARES VALUE ------- ----------- COMMON STOCKS - 88.9% APPLICATION SOFTWARE - 13.0% Autodesk. . . . . . . . . . 72,500 $ 2,701,350 Avant!* . . . . . . . . . . 40,900 838,246 Cadence Design Systems* . . 122,400 2,683,008 J.D. Edwards* . . . . . . . 40,900 674,646 Mercury Interactive*. . . . 36,700 1,247,249 MSC.Software* . . . . . . . 10,800 168,480 Parametric Technology*. . . 61,600 481,404 Peregrine Systems*. . . . . 102,600 1,521,045 Rational Software*. . . . . 20,500 399,853 Symantec* . . . . . . . . . 86,000 5,705,670 Verisity* . . . . . . . . . 24,100 459,707 ----------- 16,880,658 ----------- COMMERCIAL SERVICES AND SUPPLIES - 1.8% Career Education* . . . . . 30,800 1,056,132 Corinthian Colleges*. . . . 30,500 1,247,298 ----------- 2,303,430 ----------- COMMUNICATIONS EQUIPMENT - 2.1% Cisco Systems*. . . . . . . 67,600 1,224,574 Comverse Technology . . . . 61,600 1,377,068 Scientific-Atlanta. . . . . 5,900 141,246 ----------- 2,742,888 ----------- SHARES VALUE ------- ----------- COMPUTERS AND PERIPHERALS - 9.4% American Power Conversion*. 107,400 $ 1,555,689 Avocent*. . . . . . . . . . 62,700 1,522,043 Electronics For Imaging*. . 110,200 2,467,378 Lexmark International (Class A)*. . . . . . . . . 112,600 6,643,400 ----------- 12,188,510 ----------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 11.1%. Amphenol (Class A)* . . . . 29,700 1,427,085 Arrow Electronics*. . . . . 46,900 1,402,310 Orbotech* (Israel). . . . . 64,400 1,990,926 Sanmina-SCI* .. . . . . . . 130,600 2,598,287 Synopsys* . . . . . . . . . 105,600 6,238,320 Veeco Instruments*. . . . . 20,300 731,916 ----------- 14,388,844 ----------- INTERNET SOFTWARE AND SERVICES - 2.1% Check Point Software Technologies* (Israel). . . 66,800 2,664,986 ----------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-25- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
SHARES VALUE ------------------ ------------- IT CONSULTING AND SERVICES - 19.6% Accenture (Class A) . . . . . . 58,200 $ 1,566,744 Amdocs* . . . . . . . . . . . . 122,900 4,174,913 Computer Sciences . . . . . . . 20,400 999,192 Convergys*. . . . . . . . . . . 82,400 3,089,176 CSG Systems International*. . . 102,300 4,138,546 Electronic Data Systems . . . . 46,100 3,160,155 KPMG Consulting*. . . . . . . . 41,200 684,950 Sabre Holdings (Class A)* . . . 56,400 2,388,540 SunGard Data Systems* . . . . . 183,700 5,314,441 ------------- 25,516,657 ------------- LEISURE EQUIPMENT AND PRODUCTS - 1.2% THQ*. . . . . . . . . . . . . . 30,800 1,491,490 ------------- MEDIA - 8.3% Charter Communications (Class A)*. . . . . . . . . . 41,600 683,696 Clear Channel Communications* . . . . . . . 71,700 3,650,247 Comcast (Class A)*. . . . . . . 71,800 2,585,159 Echostar Communications (Class A)*. . . . . . . . . . 71,600 1,966,494 Lamar Advertising (Class A)*. . 45,000 1,903,050 ------------- 10,788,646 ------------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 5.1% Amkor Technology* . . . . . . . 208,100 3,319,195 ASE Test* (Taiwan). . . . . . . 31,300 433,818 ASM International* Netherlands) . . . . . . . . . 20,900 407,655 Credence Systems* . . . . . . . 30,600 568,395 Electro Scientific Industries*. 43,100 1,296,448 FEI*. . . . . . . . . . . . . . 20,600 649,003 ------------- 6,674,514 ------------- SEMICONDUCTORS - 4.6% Advanced Micro Devices* . . . . 49,900 791,414 Fairchild Semiconductor International (Class A)*. . . 72,500 2,044,500 Integrated Circuit Systems* . . 35,500 802,123 Lattice Semiconductor*. . . . . 71,900 1,478,623 Marvell Technology Group* . . . 6,000 214,950 Microtune*. . . . . . . . . . . 16,700 391,698 United Microelectronics (ADRs)* (Taiwan). . . . . . . 28,400 272,640 ------------- 5,995,948 ------------- SHARES OR PRINCIPAL AMOUNT VALUE ------------------ ------------- SYSTEMS SOFTWARE - 8.4% BMC Software* . . . . . . . . . 21,200 shs. $ 347,044 Citrix Systems* . . . . . . . . 30,600 693,549 Computer Associates International . . . . . . . . . 116,300 4,011,187 Microsoft* .. . . . . . . . . . 89,000 5,896,695 ------------- 10,948,475 ------------- TELECOMMUNICATION SERVICES - 2.2% Crown Castle International. . . 61,900 661,092 SBC Communications. . . . . . . 12,500 489,625 Sprint PCS Group. . . . . . . . 44,700 1,091,127 Verizon Communications. . . . . 14,300 678,678 ------------- 2,920,522 ------------- TOTAL COMMON STOCKS (Cost $112,794,554) 115,505,568 ------------- CONVERTIBLE PREFERRED STOCK - 0.1% (Cost $100,940) MEDIA - 0.1% Equity Securities Trust 61/2% . . . . . . . . . . 2,800 124,600 ------------- REPURCHASE AGREEMENT - 11.1% (Cost $14,500,000) State Street Bank & Trust, 1.60%,dated 12/31/2001, maturing 1/2/2002, collateralized by: $15,065,000 US Treasury Bills, 6/20/2002, with a fair market value of $14,936,948. . . . . . $ 14,500,000 14,500,000 ------------- TOTAL INVESTMENTS - 100.1% (Cost $127,395,494) 130,130,168 OTHER ASSETS LESS LIABILITIES - (0.1)% (169,771) ------------- NET ASSETS - 100.0% $129,960,397 ============= --------------- * Non-income producing security. See Notes to Financial Statements.
-P-26- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS - 97.4% CAPITAL GOODS - 1.7% Aeroflex*. . . . . . . . . . . . 5,500 $ 104,142 DRS Technologies*. . . . . . . . 2,300 81,995 EDO. . . . . . . . . . . . . . . 1,600 42,320 ---------- 228,457 ---------- CHEMICALS - 1.2% OM Group . . . . . . . . . . . . 2,400 158,856 ---------- COMMERCIAL SERVICES AND SUPPLIES - 15.4% 4 Kids Entertainment*. . . . . . 2,700 54,081 Acxiom*. . . . . . . . . . . . . 5,400 94,257 Advent Software* . . . . . . . . 1,100 54,950 Career Education*. . . . . . . . 9,400 322,326 Corinthian Colleges* . . . . . . 4,600 188,117 Corporate Executive Board (The)* . . . . . . . . . . . . 2,800 102,816 CoStar Group*. . . . . . . . . . 4,060 97,602 DeVry* . . . . . . . . . . . . . 1,600 45,520 Education Management*. . . . . . 1,200 43,506 Forrester Research*. . . . . . . 1,255 25,251 InterCept Group (The)* . . . . . 2,000 81,940 Iron Mountain* . . . . . . . . . 6,200 271,560 Resources Connection . . . . . . 1,300 34,223 SmartForce (ADRs)* (Ireland) . . 2,800 69,426 Waste Connections* . . . . . . . 15,150 469,423 Watson Wyatt*. . . . . . . . . . 3,300 71,940 ---------- 2,026,938 ---------- COMMUNICATIONS EQUIPMENT - 1.4% Avocent* . . . . . . . . . . . . 3,100 75,253 Extreme Networks*. . . . . . . . 4,600 59,363 Foundry Networks*. . . . . . . . 3,300 26,977 Powerwave Technologies*. . . . . 1,500 25,928 ---------- 187,521 ---------- CONSUMER DURABLES AND APPAREL - 5.1% Activision*. . . . . . . . . . . 10,450 272,118 International Game Technology . 2,600 177,580 THQ* . . . . . . . . . . . . . . 4,550 220,334 ---------- 670,032 ---------- SHARES VALUE ------ ---------- CONSUMER STAPLES - 2.6% Duane Reade* . . . . . . . . . . 5,100 $ 154,785 Oakley*. . . . . . . . . . . . . 11,200 182,112 ---------- 336,897 ---------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 2.3% Amerigon (Class A)*. . . . . . . 25,518 28,197 Kopin* . . . . . . . . . . . . . 6,200 86,893 NYFIX* . . . . . . . . . . . . . 5,737 114,826 Pemstar* . . . . . . . . . . . . 6,400 76,000 ---------- 305,916 ---------- ENERGY - 11.2% Chesapeake Energy* . . . . . . . 33,400 220,774 National-Oilwell*. . . . . . . . 4,400 90,684 Patterson-UTI Energy*. . . . . . 6,800 158,304 Pioneer Natural Resources* . . . 12,800 246,528 Smith International* . . . . . . 2,900 155,498 Spinnaker Exploration* . . . . . 5,550 228,438 XTO Energy . . . . . . . . . . . 21,000 367,500 ---------- 1,467,726 ---------- FINANCIALS - 7.7% Affiliated Managers Group* . . . 1,100 77,528 American Capital Strategies. . . 6,700 190,012 Commerce Bancorp . . . . . . . . 1,000 39,340 Copart*. . . . . . . . . . . . . 5,200 189,150 Gallagher (Arthur J.). . . . . . 4,900 169,001 Gladstone Capital. . . . . . . . 5,900 110,182 LaBranche* . . . . . . . . . . . 800 27,568 Metris Companies . . . . . . . . 6,750 173,543 UCBH Holdings. . . . . . . . . . 1,400 39,718 ---------- 1,016,042 ---------- HEALTH CARE EQUIPMENT AND SUPPLIES - 1.0% ArQule*. . . . . . . . . . . . . 3,000 51,015 DJ Orthopedics*. . . . . . . . . 5,400 71,820 Novoste* . . . . . . . . . . . . 1,200 10,482 ---------- 133,317 ---------- HEALTH CARE PROVIDERS AND SERVICES - 14.9% Alliance Imaging*. . . . . . . . 9,500 115,900 Apria Healthcare Group*. . . . . 5,400 134,946 Community Health Systems*. . . . 9,400 239,700 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-27- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE ------ --------- HEALTH CARE PROVIDERS AND SERVICES (continued) Health Net* . . . . . . . . . . . 5,400 117,612 LifePoint Hospitals*. . . . . . . 4,800 163,416 Manor Care* . . . . . . . . . . . 6,700 158,857 Priority Healthcare (Class B)*. . 3,700 130,221 Province Healthcare*. . . . . . . 7,000 216,860 Schein (Henry)* . . . . . . . . . 3,600 133,308 Trigon Healthcare*. . . . . . . . 2,500 173,625 United Surgical Partners International*. . . . . . . . . 3,600 76,122 Universal Health Services (Class B)*. . . . . . . . . . . 7,100 303,738 --------- 1,964,305 --------- HOTELS, RESTAURANTS AND LEISURE - 3.0% Ameristar Casinos*. . . . . . . . 2,200 55,121 Brinker International*. . . . . . 5,550 165,168 Mandalay Resort Group*. . . . . . 1,600 34,240 Station Casinos*. . . . . . . . . 12,000 134,280 --------- 388,809 --------- MEDIA - 1.3% Cox Radio (Class A)*. . . . . . . 6,800 173,264 --------- SHARES VALUE ------ --------- PHARMACEUTICALS AND BIOTECHNOLOGY - 9.8% Alexion Pharmaceuticals*. . . . . 3,300 80,652 Cell Genesys* . . . . . . . . . . 2,700 62,613 Charles River Laboratories International*. . . . . . . . . 1,700 56,916 CuraGen*. . . . . . . . . . . . . 2,000 44,460 Emisphere Technologies* . . . . . 2,600 82,875 Endo Pharmaceuticals Holdings* . . . . . . . . . . . 8,100 94,487 Genomic Solutions*. . . . . . . . 10,800 25,974 ILEX Oncology*. . . . . . . . . . 1,000 27,035 InterMune*. . . . . . . . . . . . 2,800 137,914 Isis Pharmaceuticals* . . . . . . 1,000 22,195 Lexicon Genetics* . . . . . . . . 1,600 18,584 Medarex*. . . . . . . . . . . . . 2,900 52,070 Medicis Pharmaceutical (Class A)*. . . . . . . . . . . 2,200 142,098 Noven Pharmaceuticals*. . . . . . 1,300 23,107 PRAECIS Pharmaceuticals*. . . . . 8,300 48,638 SangStat Medical* . . . . . . . . 3,700 73,093 Serologicals*.. . . . . . . . . . 2,100 45,045 SICOR . . . . . . . . . . . . . . 3,300 52,008 Transkaryotic Therapies*. . . . . 2,800 $ 119,686 Tularik*. . . . . . . . . . . . . 2,200 52,778 Vical*. . . . . . . . . . . . . . 2,700 33,116 --------- 1,295,344 --------- RETAILING - 4.1% Electronics Boutique Holdings* . 1,100 43,863 Fisher Scientific International*. 4,600 134,320 Foot Locker* .. . . . . . . . . . 9,400 147,110 Hughes Supply . . . . . . . . . . 900 27,783 MSC Industrial Direct (Class A) . . . . . . . . . . . 9,400 185,650 ScanSource*.. . . . . . . . . . . 100 4,762 --------- 543,488 --------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 3.9% Amkor Technology* . . . . . . . . 7,200 114,840 ANADIGICS*. . . . . . . . . . . . 3,800 58,064 ATMI* . . . . . . . . . . . . . . 2,600 62,075 Cognex* . . . . . . . . . . . . . 2,600 66,612 Credence Systems* . . . . . . . . 4,000 74,300 Exar* . . . . . . . . . . . . . . 2,600 54,431 IXYS* . . . . . . . . . . . . . . 600 4,869 MKS Instruments*. . . . . . . . . 1,500 40,560 TriQuint Semiconductor* . . . . . 3,310 40,581 --------- 516,332 --------- SOFTWARE AND SERVICES - 2.8% Actuate*. . . . . . . . . . . . . 7,100 37,595 Henry (Jack) & Associates . . . . 5,700 124,317 Informatica*. . . . . . . . . . . 1,300 18,856 NetIQ*. . . . . . . . . . . . . . 1,400 49,357 SonicWALL* .. . . . . . . . . . . 3,300 64,136 Stellent* . . . . . . . . . . . . 2,500 74,575 Tier Technologies*. . . . . . . . 200 4,301 --------- 373,137 --------- TELECOMMUNICATION SERVICES - 4.5% AirGate PCS*. . . . . . . . . . . 3,700 167,776 Rural Cellular (Class A)* . . . . 8,140 182,987 West* . . . . . . . . . . . . . . 4,100 102,582 Western Wireless (Class A)* . . . 4,700 132,799 --------- 586,144 --------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-28- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE ------ -------- TRANSPORTATION - 3.5% Arkansas Best* 1,700 $ 49,002 Atlantic Coast Airlines Holdings* .. . . . . . 8,700 202,666 SkyWest 8,200 209,059 -------- 460,727 --------
VALUE ----------- TOTAL INVESTMENTS - 97.4% (Cost $11,934,179) $12,833,252 OTHER ASSETS LESS LIABILITIES - 2.6% 340,568 ----------- NET ASSETS - 100.0% $13,173,820 ===========
SELIGMAN GLOBAL GROWTH PORTFOLIO
SHARES VALUE ------ -------- COMMON STOCKS - 96.6% AUSTRALIA - 1.3% BHP Billiton (Metals and Mining) 4,000 $ 21,498 Westpac Banking (Banks). . . . . . . 5,000 40,321 -------- 61,819 -------- BELGIUM - 0.5% Omega Pharma (Consumer Staples) . . . . . . . . 500 22,632 -------- CANADA - 0.9% Barrick Gold (Metals and Mining) 1,900 30,305 Weston (George) (Consumer Staples) . . . . . . . . 200 12,988 -------- 43,293 -------- FINLAND - 2.4% Nokia (Communications Equipment) . . . . . . . . . . . . 2,200 56,713 UPM-Kymmene (Paper and Forest Products) . . . . . . . 1,600 53,053 -------- 109,766 -------- SHARES VALUE ------ -------- FRANCE - 8.2% Aventis (Health Care). . . . . . . . 850 60,341 Carrefour* (Consumer Staples) . 800 41,588 Castorama Dubois Investissement (Retailing) . . . . 700 36,047 France Telecom (Telecommunication Services) .. . . . . . . . . . . . 800 31,992 FRANCE (continued) Groupe Danone (Consumer Staples) . . . . . . . . 100 $ 12,195 LVMH M et Hennessy Louis Vuitton (Textiles and Apparel) . . . . . . 800 32,544 PSA Peugeot Citroen (Automobiles and Components). . . . . . . . . . 750 31,879 Sanofi-Synthelabo (Health Care). . . . . . . . . . . 940 70,119 Vivendi Universal (Media). . . . . . 1,200 64,548 -------- 381,253 -------- GERMANY - 5.0% Allianz (Insurance). . . . . . . . . 250 59,195 Deutsche Bank* (Banks) . . . . . . . 850 60,076 Deutsche Telekom (Telecommunication Services) 1,300 22,334 E.ON (Utilities) . . . . . . . . . . 1,050 54,378 SAP (Software and Services). . . . . 300 39,069 -------- 235,052 -------- HONG KONG - 2.4% Aluminum Corp. of China (ADRs)* (Metals and Mining). . . . . . . . 1,400 24,472 CNOOC (Energy) . . . . . . . . . . . 31,500 29,691 Hutchison Whampoa (Capital Goods). . . . . . . . . . 6,000 58,094 -------- 112,257 -------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-29- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ -------- IRELAND - 3.2% Bank of Ireland (Banks). . . . . . . . . 6,048 $ 57,228 Elan (ADRs)* (Health Care) . . . . . . . 2,000 90,120 -------- 147,348 -------- ISRAEL - 1.2% Check Point Software Technologies* (Software and Services). . . . . . . . 700 27,923 RADVision* (Communications Equipment) 3,700 28,028 -------- 55,951 -------- ITALY - 1.1% Assicurazioni Generali (Insurance). . . . . . . . . . . . . . 1,900 52,768 -------- SHARES VALUE ------ -------- JAPAN - 10.1% Benesse (Commercial Services and Supplies). . . . . . . . . . . . . 1,300 33,738 Bridgestone (Automobiles and Components). . . . . . . . . . . . 3,500 37,054 Chugai Pharmaceutical (Health Care). . . . . . . . . . . . . 1,000 11,595 Citizen Watch (Electronic Equipment and Instruments) . 3,000 14,953 Dai Nippon Printing (Commercial Services and Supplies) . . . . . . . . 2,000 19,998 Drake Beam Morin-Japan (Commercial Services and Supplies). . . . . . . . . . . . . . 200 13,739 Honda Motor (Automobiles and Components). . . . . . . . . . . . 1,800 71,857 Keyence (Electronic Equipment and Instruments) . . . . . . 100 16,632 NEC (Electronic Equipment and Instruments) . . . . . . . . . . . 1,400 14,287 Nintendo (Leisure Equipment and Products). . . . . . . . 200 35,035 Nippon System Development (Software and Services). . . . . . . . 400 15,938 Nomura Holdings (Diversified Financials) . . . . . . . 2,300 29,494 NTT DoCoMo (Telecommunication Services) .. . . . . . . . . . . . . . 2 23,510 Promise (Diversified Financials) 600 32,471 Takeda Chemical Industries (Health Care). . . . . . . . . . . . . 500 22,632 JAPAN (continued) Takefuji (Diversified Financials) . . . 200 $ 14,472 Toyota Motor (Automobiles and Components). . . . . . . . . . . . 1,200 30,410 Yahoo Japan* (Software and Services). . . . . . . . 1 31,143 -------- 468,958 -------- NETHERLANDS - 3.1% Aegon (Insurance). . . . . . . . . . . . 1,024 27,710 Elsevier (Media) . . . . . . . . . . . . 3,200 37,828 ING Groep (Diversified Financials) . . . . . . . 586 14,939 STMicroelectronics (Semiconductors) . . . . . . . . . . . 800 25,672 Unilever (Consumer Staples). . . . . . . 700 40,327 -------- 146,476 -------- SINGAPORE - 0.3% Venture Manufacturing (Electronic Equipment and Instruments) . 2,000 14,406 -------- SOUTH KOREA - 0.5% Samsung Electronics (Semiconductors) . . . . . . . . . . . 100 21,322 -------- SPAIN - 3.2% Banco Bilbao Vizcaya Argentaria (Banks) . . . . . . . . . . 3,350 41,450 Banco Popular Espanol (Banks). . . . . . . . . . . . 1,800 59,092 Sogecable* (Media) . . . . . . . . . . . 1,400 32,401 Telef nica* (Telecommunication Services) .. . . . . . . . . . . . . . 1,042 13,941 -------- 146,884 -------- SWEDEN - 0.3% L.M. Ericsson Tel. (Communications Equipment) 2,500 13,632 -------- SWITZERLAND - 4.1% Credit Suisse Group (Banks). . . . . . . 900 38,395 Novartis (Health Care) . . . . . . . . . 800 28,923 Serono (Health Care) . . . . . . . . . . 40 34,924 Swiss Re (Insurance) . . . . . . . . . . 500 50,313 UBS (Diversified Financials) . . . . . . 750 37,871 -------- 190,426 -------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-30- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED KINGDOM - 11.7% AstraZeneca (ADRs) (Health Care). . . . . . . . . . . . 800 $ 37,280 BAA (Transportation) . . . . . . . . . 3,870 30,972 Barclays Bank (Banks). . . . . . . . . 1,000 33,074 BHP Billiton (Metals and Mining) 8,000 40,590 British American Tobacco (ADRs) (Consumer Staples) . . . . . . . . . 2,200 37,400 Centrica (Utilities) . . . . . . . . . 5,650 18,235 Diageo (Consumer Staples). . . . . . . 6,525 74,465 GlaxoSmithKline (Health Care) . 2,479 62,096 Man Group (Diversified Financials). . . . . . . . . . . . . 2,600 45,056 Royal Bank of Scotland Group (Banks). . . . . . . . . . . . . . . 2,453 59,626 Tesco (Consumer Staples) . . . . . . . 15,865 57,431 Vodafone Group (Telecommunication Services) 19,500 50,957 ---------- 547,182 ---------- SHARES VALUE ------ ---------- UNITED STATES - 37.1% AOL Time Warner* (Media) . . . . . . . 1,300 41,730 Applera-Applied Biosystems Group (Health Care). . . . . . . . . 2,100 82,467 CIENA* (Communications Equipment) . . . . . 4,900 70,144 Cisco Systems* (Communications Equipment) . . . . . 6,000 108,690 Citigroup (Diversified Financials) . . . . . . 2,300 116,104 CNET Networks* (Software and Services). . . . . . . 2,100 18,806 Computer Associates International (Software and Services). . . . . . . 1,200 41,388 Foot Locker* (Retailing) . . . . . . . 6,200 97,030 UNITED STATES (continued) Hilton Hotels (Hotels, Restaurants and Leisure) . . . . . . 4,900 $ 53,508 Honeywell International (Capital Goods). . . . . . . . . . . 3,200 108,224 Intel (Semiconductors) . . . . . . . . 3,500 110,057 International Business Machines Computer and Peripherals) . . . . . 500 60,480 Lilly (Eli) (Health Care). . . . . . . 600 47,124 MedImmune* (Health Care) . . . . . . . 2,000 92,660 Medtronic (Health Care). . . . . . . . 2,200 112,662 Microsoft* (Software and Services). . . . . . . 1,200 79,506 NIKE (Class B) (Consumer Durables and Apparel). . . . . . . . 1,700 95,608 Pfizer (Health Care) . . . . . . . . . 2,600 103,610 Philip Morris (Consumer Staples) . . . . . . . . . 1,300 59,605 Starwood Hotels & Resorts Worldwide (Hotels, Restaurants and Leisure) . . . . . . 400 11,940 Texas Instruments (Semiconductors) . . . . . . . . . . 3,200 89,600 Tyco International (Capital Goods). . . . . . . . . . . 2,200 129,580 ---------- 1,730,523 ---------- TOTAL INVESTMENTS - 96.6% (Cost $4,484,030). . . . . . . . . . 4,501,948 OTHER ASSETS LESS LIABILITIES - 3.4% . . . . . . 157,020 ---------- NET ASSETS - 100.0% . . . . . . . . . $4,658,968 ========== --------------- * Non-income producing security. See Notes to Financial Statements.
-P-31- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
SHARES VALUE ------ -------- COMMON STOCKS - 96.4% AUSTRALIA - 1.3% Baycorp Advantage (Commercial Services and Supplies). . . . . . . . . . 4,600 $ 14,716 Billabong International (Retailing). . . . . . . . . . . 2,900 12,439 BRL Hardy (Consumer Staples) . . . . . . . . . . . . 2,726 15,418 Cochlear (Health Care Equipment and Supplies). . . . . 650 15,138 CSL (Pharmaceuticals and Biotechnology) . . . . . . . 750 19,766 Foodland Associated (Consumer Staples) . . . . . . . 1,915 12,007 Perpetual Trustees Australia (Financials) . . . . . . . . . . 700 15,738 Sonic Healthcare (Health Care Equipment and Supplies). . . . . . 3,670 15,028 TAB (Hotels, Restaurants and Leisure) . . . . . . . . . . . 10,700 14,897 -------- 135,147 -------- AUSTRIA - 1.1% EMTS Technologie* (Commercial Services and Supplies). . . . . . . . . . 1,950 58,749 Telekom Austria (Telecommunication Services) .. . . . . . . . . . . 6,500 53,867 -------- 112,616 -------- BELGIUM - 0.8% Omega Pharma (Health Care Equipment and Supplies). . . . . 1,841 83,331 -------- CANADA - 0.5% Clarica Life Insurance (Financials) . . . . . . . . . . 400 13,201 Dofasco (Metals and Mining). . . . 550 8,915 Exfo Electro-Optical Engineering* (Electronic Equipment and Instruments) . . . . . . . . 450 5,348 Sierra Wireless* (Communications Equipment) 450 8,478 SNC-Lavalin Group (Capital Goods). . . . . . . . . 900 16,335 -------- 52,277 -------- SHARES VALUE ------ -------- DENMARK - 0.5% TK Development (Real Estate). . . . . . . . . . 2,360 $ 49,733 -------- FRANCE - 4.0% Du Pareil au Meme (Retailing). . . 723 9,332 Financiere Marc de Lacharriere "Fimalac"* (Diversified) . . . . 2,390 85,737 Groupe Alten (Software and Services). . . . . 3,331 45,662 MEDIDEP* (Health Care Providers and Services). . . . . 5,080 97,900 Pinguely-Haulotte (Capital Goods). . . . . . . . . 4,950 48,909 Technip-Coflexip (Energy). . . . . 460 61,420 Transiciel (Software and Services). . . . . 1,600 49,407 -------- 398,367 -------- GERMANY - 5.1% Beru (Automobiles and Components). . . . . . . . . 1,400 61,064 FJA (Electronic Equipment and Instruments) . . . . . . . . 1,588 72,091 Fraport* (Transportation). . . . . 2,300 54,255 GfK (Commercial Services and Supplies). . . . . . . . . . 3,385 61,438 Mediclin* (Health Care Providers and Services). . . . . 15,135 52,542 Medion (Commercial Services and Supplies) . . . . . 2,000 80,808 Senator Entertainment* (Media). . . . . . . . . . . . . 90 207 Techem* (Commercial Services and Supplies) . . . . . 2,600 56,124 Tecis Holding (Financials) . . . . 2,100 59,818 Zapf Creation (Consumer Durables and Apparel). . . . . . 635 14,696 -------- 513,043 -------- HONG KONG - 0.7% Beijing Datang Power Generation (Utilities). . . . . . . . . . . 48,000 15,235 Cafe de Coral Holdings (Hotels, Restaurants and Leisure) . . . . 20,000 11,542 China Insurance International Holdings* (Financials) . . . . . 18,000 11,196 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-32- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE --------- -------- HONG KONG (continued) Convenience Retail Asia* (Consumer Staples). . . . . . . . . . 34,000 $ 11,010 Dah Sing Financial Group (Financials) . . . . . . . . . . . . 2,300 10,884 Giordano International (Retailing). . . . . . . . . . . . . 20,000 8,849 -------- 68,716 -------- IRELAND - 1.0% urys Doyle Hotel Group (Hotels, Restaurants and Leisure) . . . . . . 3,467 24,998 Parthus Technologies* (Semiconductor Equipment and Products). . . . . . . 36,244 18,837 Ryanair Holdings* (Transportation) . . . . . . . . . . 4,675 29,546 SmartForce (ADRs)* (Commercial Services and Supplies). . . . . . . . . . . . 1,300 32,234 -------- 105,615 -------- ITALY - 2.8% Amplifon* (Health Care Equipment and Supplies). . . . . . . . 2,909 49,847 Campari Group* (Consumer Staples) . . . . . . . . . . 3,560 83,977 Ferretti* (Capital Goods). . . . . . . 23,000 74,933 Lottomatica* (Hotels, Restaurants and Leisure) . . . . . . . 11,700 68,425 -------- 277,182 -------- SHARES VALUE --------- -------- JAPAN - 7.7% Anritsu (Electronic Equipment and Instruments) . 500 4,019 ASATSU-DK (Media). . . . . . . . . . . 1,600 31,265 Bank of Iwate (Financials) . . . . . . 500 14,846 Citizen Electronics (Consumer Durables and Apparel). . . . . . . . 600 35,264 Densei-Lambda (Capital Goods). . . . . . . . . . . . 3,600 27,479 Disco (Semiconductor Equipment and Products). . . . . . . 200 9,465 Don Quijote (Retailing). . . . . . . . 500 26,525 Eighteenth Bank (The) (Financials) . . . . . . . . . . . . 4,000 14,350 Enplas (Electronic Equipment and Instruments) . . . . . . . . . . . 1,700 33,933 JAPAN (continued) Fuji Machine Manufacturing (Capital Goods). . . . . . . . . . . . 500 $ 6,526 Fuji Seal (Containers and Packaging) . . . . . . . . . . . . 900 31,257 Fujicco (Consumer Staples) . . . . . . 3,000 25,853 Higo Bank (The) (Financials). . . . . . . . . . . . . 5,000 15,037 Hokuto (Consumer Staples). . . . . . . 700 24,258 Iyo Bank (The) (Financials). . . . . . . . . . . . . 3,000 15,571 Kissei Pharmaceutical (Pharmaceuticals and Biotechnology) . . . . . . . . . . 2,000 29,204 Kokusai Securities (Financials). . . . . . . . . . . . . 4,000 23,204 Konami Sports (Hotels, Restaurants and Leisure) . . . . . . . 900 25,006 Moshi Moshi Hotline (Commercial Services and Supplies). . . . . . . . . . . . . . 300 23,815 Nippon Broadcasting Systems (Media) . . . . . . . . . . . . . . . 2,000 53,431 Otsuka Kagu (Retailing). . . . . . . . 700 24,311 Plenus (Hotels, Restaurants and Leisure) . . . . . . . . . . . . 600 27,479 Shimachu (Retailing) . . . . . . . . . 2,000 27,479 Sorun (Software and Services) . 3,000 22,807 Sundrug (Consumer Staples) . . . . . . 100 3,817 Taiyo Ink Manufacturing (Chemicals). . . . . . . . . . . . . 1,100 32,746 Tokyo Steel Manufacturing (Metals and Mining). . . . . . . . . 4,900 14,026 Tokyo Style (Consumer Durables and Apparel). . . . . . . . 2,000 17,159 Tsubaki Nakashima (Capital Goods) . . . . . . . . . . . 3,000 22,143 Tsutsumi Jewelry (Retailing) . . . . . 1,500 30,742 Ushio (Capital Goods). . . . . . . . . 2,000 22,609 Xebio (Retailing). . . . . . . . . . . 1,600 23,803 Yamaichi Electronics (Electronic Equipment and Instruments) . . . . . . . . . . 2,100 13,913 Yokohama Reito (Consumer Staples). . . . . . . . . . 4,000 19,235 -------- 772,577 -------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-33- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ -------- NETHERLANDS - 1.5% New Skies Satellites* (Telecommunication Services) . . . . . . . . . . . 13,100 $ 81,627 United Services Group (Commercial Services and Supplies) . . . . . . . . . 3,450 67,102 -------- 148,729 -------- NEW ZEALAND - 0.4% Fisher & Paykel Appliances Holdings* (Consumer Durables and Apparel) . . . . . 2,255 9,481 Fisher & Paykel Healthcare* (Health Care Equipment and Supplies) . . . . . . . . . 2,164 15,405 Fisher & Paykel Healthcare (ADRs) (Health Care Equipment and Supplies) . . . . . . . . . 420 11,838 -------- 36,724 -------- NORWAY - 0.4% Petroleum Geo-Services* (Energy) . . . . . . . . . . . . 4,713 36,490 -------- SINGAPORE - 0.2% SembCorp Logistics (Transportation) . . . . . . . . 12,000 11,698 Venture Manufacturing (Electronic Equipment and Instruments). . . . . . . . 1,200 8,643 -------- 20,341 -------- SOUTH KOREA - 0.5% Cheil Jedang (Consumer Staples) . . . . . . . 300 11,349 Hite Brewery (Consumer Staples) . . . . . . . 290 11,924 Hotel Shilla (Hotels, Restaurants and Leisure). . . . 1,900 12,342 Intelligent Digital Integrated Security "IDIS"* (Electronic Equipment and Instruments) . 1,100 9,878 -------- 45,493 -------- SHARES VALUE ------ -------- SPAIN - 2.8% Actividades de Construcci on y Servicios "ACS"* (Capital Goods). . . . . . . . . 3,200 78,048 SPAIN (continued) Aldeasa (Retailing) . . . . . . . 3,700 $ 56,386 Bar on de Ley* (Consumer Staples). . . . . . . 4,005 92,870 Compa ia de Distribuci n Integral Logista (Media). . . . 4,225 55,285 -------- 282,589 -------- SWITZERLAND - 1.4% Kaba Holding (Capital Goods). . . . . . . . . 230 56,821 Schindler Holding* (Capital Goods). . . . . . . . . 2 2,868 Swisslog Holding (Capital Goods). . . . . . . . . 2,681 51,694 Tecan* (Health Care Equipment and Supplies) . . . . 500 33,141 -------- 144,524 -------- UNITED KINGDOM - 5.8% Ashtead Group (Capital Goods). . . . . . . . . . . . . 71,600 81,192 DFS Furniture (Retailing) . . . . 3,165 20,607 Enterprise Inns (Hotels, Restaurants and Leisure). . . . 6,112 55,446 Fitness First* (Hotels, Restaurants and Leisure). . . . 13,000 89,394 FKI (Capital Goods) . . . . . . . 14,500 38,998 Informa Group (Media) . . . . . . 15,600 61,234 Interserve (Commercial Services and Supplies). . . . . 8,500 63,492 PizzaExpress (Hotels, Restaurants and Leisure). . . . 6,620 85,847 Xansa (Software and Services) . 15,876 82,397 -------- 578,607 -------- UNITED STATES - 57.9% 4 Kids Entertainment* (Commercial Services and Supplies) . . . . . . . . . . 1,300 26,039 Activision* (Consumer Durables and Apparel) . . . . . 4,700 122,388 Actuate* (Software and Services) 3,200 16,944 Acxiom* (Commercial Services and Supplies). . . . . 2,500 43,638 Advent Software* (Commercial Services and Supplies) . . . . . . . . . . 500 24,978 Aeroflex* (Capital Goods) . . . . 2,500 47,338 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-34- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------- -------- UNITED STATES (continued) Affiliated Managers Group* (Financials) . . . . . . . . . . 500 $ 35,240 AirGate PCS* (Telecommunication Services) .. . . . . . . . . . . 1,500 68,018 Alexion Pharmaceuticals* (Pharmaceuticals and Biotechnology) . . . . . . . 1,500 36,660 Alliance Imaging* (Health Care Providers and Services) . . . . . . . . . . 4,300 52,460 American Capital Strategies* (Financials) . . . . . . . . . . 3,100 87,916 Amerigon (Class A)* (Electronic Equipment and Instruments) . . . . . . . . 9,920 10,962 Ameristar Casinos* (Hotels, Restaurants and Leisure) . . . . 1,100 27,561 Amkor Technology* (Semiconductor Equipment and Products). . . . . 3,600 57,420 ANADIGICS* (Semiconductor Equipment and Products). . . . . 1,700 25,976 Apria Healthcare Group* (Health Care Providers and Services). . . . . . . . . . 2,500 62,475 Arkansas Best* (Transportation) . . . . . . . . 700 20,177 ArQule* (Health Care Equipment and Supplies). . . . . 1,400 23,807 Atlantic Coast Airlines Holdings* (Transportation) . . . . 3,900 90,850 ATMI* (Semiconductor Equipment and Products). . . . . 1,300 31,038 Avocent* (Communications Equipment) . . . . . . . . . . . 1,400 33,985 Brinker International* (Hotels, Restaurants and Leisure) . . . . . 2,550 75,888 Career Education* (Commercial Services and Supplies) . . . . . 4,300 147,447 Cell Genesys* (Pharmaceuticals and Biotechnology) . . . . . . . 1,300 30,147 Charles River Laboratories International* (Pharmaceuticals and Biotechnology) . . . . . . . 800 26,784 Chesapeake Energy* (Energy) . 15,150 100,142 SHARES VALUE ------- -------- UNITED STATES (continued) Cognex* (Semiconductor Equipment and Products). . . . . 1,200 $ 30,744 Commerce Bancorp (Financials) . . . . . . . . . . 400 15,736 Community Health Systems* (Health Care Providers and Services). . . . . . . . . . 4,300 109,650 Copart* (Financials) . . . . . . . 2,300 83,663 Corinthian Colleges* (Commercial Services and Supplies). . . . . . . . . . 2,000 81,790 Corporate Executive Board (The)* (Commercial Services and Supplies). . . . . . . . . . 1,300 47,736 CoStar Group* (Commercial Services and Supplies) . . . . . 1,900 45,676 Cox Radio (Class A)* (Media) . . . 3,100 78,988 Credence Systems* (Semiconductor Equipment and Products). . . . . 1,800 33,435 CuraGen* (Pharmaceuticals and Biotechnology) . . . . . . . 1,000 22,230 DeVry* (Commercial Services and Supplies) . . . . . 700 19,915 DJ Orthopedics* (Health Care Equipment and Supplies). . . . . 2,500 33,250 DRS Technologies* (Capital Goods). . . . . . . . . 1,100 39,215 Duane Reade* (Consumer Staples) . . . . . . . 2,300 69,805 EDO (Capital Goods). . . . . . . . 700 18,515 Education Management* (Commercial Services and Supplies). . . . . . . . . . 500 18,128 Electronics Boutique Holdings* (Retailing). . . . . . . 400 15,950 Emisphere Technologies* (Pharmaceuticals and Biotechnology) . . . . . . . . 1,200 38,250 Endo Pharmaceuticals Holdings* (Pharmaceuticals and Biotechnology) . . . . . . . . 3,600 41,994 Exar* (Semiconductor Equipment and Products). . . . . . 1,300 27,216 Extreme Networks* (Communications Equipment) . . . . . . . . . . . . 2,000 25,810 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-35- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ -------- UNITED STATES (continued) Fisher Scientific International* (Retailing). . . . . . . . . . . 2,100 $ 61,320 Foot Locker* (Retailing) . . . . . 4,300 67,295 Forrester Research* (Commercial Services and Supplies). . . . . . . . . . . 485 9,758 Foundry Networks* (Communications Equipment) . . . . . . . . . . . 1,500 12,262 Gallagher (Arthur J.) (Financials) . . . . . . . . . . 2,200 75,878 Genomic Solutions* (Pharmaceuticals and Biotechnology) . . . . . . . 5,000 12,025 Gladstone Capital (Financials) . . . . . . . . . . 2,800 52,290 Health Net* (Health Care Providers and Services). . . . . 2,500 54,450 Henry (Jack) & Associates (Software and Services). . . . . 2,600 56,706 Hughes Supply (Retailing). . . . . 400 12,348 ILEX Oncology* (Pharmaceuticals and Biotechnology) . . . . . . . 500 13,518 Informatica* (Software and Services). . . . . . . . . . 600 8,703 InterCept Group (The)* (Commercial Services and Supplies). . . . . . . . . . 1,000 40,970 InterMune* (Pharmaceuticals and Biotechnology) . . . . . . . 1,300 64,032 International Game Technology (Consumer Durables and Apparel) . . . . . . . . . . 1,200 81,960 Iron Mountain* (Commercial Services and Supplies) . . . . . 2,900 127,020 Isis Pharmaceuticals* (Pharmaceuticals and Biotechnology) . . . . . . . 500 11,097 IXYS* (Semiconductor Equipment and Products). . . . . 200 1,623 Kopin* (Electronic Equipment and Instruments) . . . . . . . . 2,900 40,644 LaBranche* (Financials). . . . . . 400 13,784 SHARES VALUE ------ -------- UNITED STATES (continued) Lexicon Genetics* (Pharmaceuticals and Biotechnology) . . . . . . . 700 $ 8,130 LifePoint Hospitals* (Health Care Providers and Services). . . . . 2,100 71,495 Mandalay Resort Group* (Hotels, Restaurants and Leisure) . . . . 700 14,980 Manor Care* (Health Care Providers and Services). . . . . 3,100 73,501 Medarex* (Pharmaceuticals and Biotechnology) . . . . . . . 1,300 23,341 Medicis Pharmaceutical (Class A)* (Pharmaceuticals and Biotechnology) . . . . . . . 1,000 64,590 Metris Companies (Financials) . 3,050 78,416 MKS Instruments* (Semiconductor Equipment and Products). . . . . 700 18,928 MSC Industrial Direct (Class A)* (Retailing). . . . . . . . . . . 4,300 84,925 National-Oilwell* (Energy) . . . . 2,000 41,220 NetIQ* (Software and Services). 600 21,153 Noven Pharmaceuticals* (Pharmaceuticals and Biotechnology) . . . . . . . 500 8,887 Novoste* (Health Care Equipment and Supplies). . . . . 500 4,367 NYFIX* (Electronic Equipment and Instruments) . . . . . . . . 2,607 52,179 Oakley* (Consumer Staples) . . . . 5,000 81,300 OM Group (Chemicals) . . . . . . . 1,100 72,809 Patterson-UTI Energy* (Energy) . . . . . . . . . . . . 3,100 72,168 Pemstar* (Electronic Equipment and Instruments) . . . . . . . . 2,900 34,438 Pioneer Natural Resources* (Energy) . . . . . . . . . . . . 5,850 112,671 Powerwave Technologies* (Communications Equipment) . . . . . . . . . . . 600 10,371 PRAECIS Pharmaceuticals* (Pharmaceuticals and Biotechnology) . . . . . . . 4,200 24,612 --------------- * Non-income producing security. See Notes to Financial Statements.
-P-36- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DECEMBER 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ----------- UNITED STATES (continued) Priority Healthcare (Class B)* (Health Care Providers and Services) . . . . . . . . . 1,800 $ 63,351 Province Healthcare* (Health Care Providers and Services) . . . . . . . . . 3,150 97,587 Resources Connection* (Commercial Services and Supplies) . . . . . . . . . 600 15,795 Rural Cellular (Class A)* (Telecommunication Services) . . . . . . . . . . . 3,600 80,928 SangStat Medical* (Pharmaceuticals and Biotechnology). . . . . . . 1,700 33,583 ScanSource* (Retailing) . . . . . 100 4,762 Schein (Henry)* (Health Care Providers and Services) . . . . 1,500 55,545 Serologicals* (Pharmaceuticals and Biotechnology). . . . . . . 1,000 21,450 SICOR (Pharmaceuticals and Biotechnology). . . . . . . 1,500 23,640 SkyWest (Transportation). . . . . 3,400 86,683 Smith International* (Energy) . . 1,300 69,706 SonicWALL* (Software and Services) . . . . . . . . . 1,500 29,153 Spinnaker Exploration* (Energy). . . . . . . . . . . . 2,550 104,958 Station Casinos* (Hotels, Restaurants and Leisure). . . . 5,400 60,426 Stellent* (Software and Services) . . . . . . . . . 1,200 35,796 THQ* (Consumer Durables and Apparel). . . . . . . . . . . 2,050 99,271 Tier Technologies* (Software and Services) . . . . . . . . . . 100 2,150 Transkaryotic Therapies* (Pharmaceuticals and Biotechnology). . . . . . . 1,300 55,568 SHARES VALUE ------ ----------- UNITED STATES (continued) Trigon Healthcare (Class A)* (Health Care Providers and Services) . . . . . . . . . 1,200 $ 83,340 TriQuint Semiconductor* (Semiconductor Equipment and Products) . . . . . 1,490 18,267 Tularik* (Pharmaceuticals and Biotechnology). . . . . . . 1,000 23,990 UCBH Holdings (Financials). . . . 600 17,022 United Surgical Partners International* (Health Care Providers and Services) . . . . 1,600 33,832 Universal Health Services (Class B)* (Health Care Providers and Services) . . . . 3,200 136,896 Vical* (Pharmaceuticals and Biotechnology). . . . . . . 1,300 15,944 Waste Connections* (Commercial Services and Supplies). . . . . 6,850 212,247 Watson Wyatt Holdings (Class A)* (Commercial Services and Supplies) . . . . . . . . . 1,400 30,520 West* (Telecommunication Services) . . . . . . . . . . . 1,800 45,036 Western Wireless (Class A)* (Telecommunication Services) . . . . . . . . . . . . 2,100 59,335 XTO Energy (Energy) . . . . . . . 9,500 166,250 ----------- 5,799,169 ----------- TOTAL INVESTMENTS - 96.4% (Cost $9,726,702) 9,661,270 OTHER ASSETS LESS LIABILITIES - 3.6% 356,166 ----------- NET ASSETS - 100.0% $10,017,436 ----------- --------------- * Non-income producing security. See Notes to Financial Statements.
-P-37- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS - 85.3% DENMARK - 0.4% Maconomy* (Application Software). . . . . 48,500 $ 76,654 ---------- FINLAND - 1.1% Nokia (Communications Equipment). . . . . . . . . . . 9,000 232,009 ---------- FRANCE - 1.0% ActivCard (ADRs)* (Electronic Equipment and Instruments). . . . . . . . 12,300 114,636 Soitec* (Electronic Equipment and Instruments). . . . . . . . 5,600 110,913 ---------- 225,549 ---------- GREECE - 0.9% Cosmote Mobile Communications (Telecommunication Services) . . . . . . . . . . . 19,700 200,261 ---------- ISRAEL - 3.2% Check Point Software Technologies* (Internet Software and Services). . . . . 8,200 327,139 Orbotech* (Semiconductor Equipment). . . . . . . . . . . 11,850 366,343 ---------- 693,482 ---------- JAPAN - 6.1% Canon (Electronic Equipment and Instruments) .. . 6,000 206,549 Furukawa Electric (Capital Goods) . . . . . . . . 23,000 122,189 Kyocera (Electronic Equipment and Instruments) .. . 4,500 293,680 Omron (Electronic Equipment and Instruments) .. . 24,000 320,586 THK (Capital Goods) . . . . . . . 10,800 157,619 Toshiba (Electronic Equipment and Instruments). . . 67,000 230,135 ---------- 1,330,758 ---------- SHARES VALUE ------ ---------- NETHERLANDS - 2.9% ASM International*(Semiconductor Equipment). . . . . . . . . . . 9,400 183,347
SHARES VALUE ------ -------- NETHERLANDS (continued) Koninklijke KPN (Telecommunication Services) .. . . . . . . . . 37,000 $188,062 Oce (Electronic Equipment and Instruments) . . . . . . 9,000 90,288 STMicroelectronics (Semiconductors) . . . . . . 3,900 125,151 STMicroelectronics (NY Shares) (Semiconductors) . . . . . . 1,400 44,338 -------- 631,186 -------- SINGAPORE - 1.8% Chartered Semiconductor Manufacturing* (Semiconductors) . . . . . . 4,900 129,385 Venture Manufacturing (Electronic Equipment and Instruments) . . . . . . . . 36,000 259,301 -------- 388,686 -------- SOUTH KOREA - 3.7% LG TeleCom* (Communications Equipment) . . . . . . . . . 52,000 327,459 Samsung Electronics (Semiconductors) . . . . . . 1,000 213,221 Samsung SDI (Electronic Equipment and Instruments) . . . . . . . . 6,100 270,386 -------- 811,066 -------- SWEDEN - 0.7% L.M. Ericsson Tel. (Communications Equipment) . . . . . . . . . 27,000 147,230 -------- SWITZERLAND - 0.6% Leica Geosystems* (Electronic Equipment and Instruments) . . . . . . . . 300 27,748 TEMENOS Group* (IT Consulting and Services) . . 12,300 92,643 -------- 120,391 -------- TAIWAN - 3.9% ASE Test* (Semiconductor Equipment) . . . . . . . . . 14,300 198,198 Sunplus Technology (Semiconductors) . . . . . . 38,000 117,425 ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-38 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE ------- -------- TAIWAN (continued) United Microelectronics (Semiconductors) . . . . . . . . . 160,300 $233,914 Via Technologies (Electronic Equipment and Instruments) . . . . 39,000 158,455 Yageo (GDRs) (Electronic Equipment and Instruments) . . . . . . . . . . . 200,000 147,639 -------- 855,631 -------- UNITED KINGDOM - 1.7% Pace Micro Technology (Electronic Equipment and Instruments) . . . . 39,000 198,444 Vodafone Group (Telecommunication Services) .. . . . . . . . . . . . 61,000 159,405 -------- 357,849 -------- UNITED STATES - 57.3% Accenture (Class A)* (IT Consulting and Services). . . . . . . . . . . 10,900 293,428 Advanced Micro Devices* (Semiconductors) 133,224 Amdocs*(IT Consulting and Services). . . . . . . . . . . 16,800 570,696 Amkor Technology*(Semiconductor Equipment) . . . . . . . . . . . . 26,900 429,055 Amphenol (Class A)* (Electronic Equipment and Instruments) 211,420 Autodesk (Application Software) .. . . . . . . . . . . . 19,800 737,748 Avocent* (Computers and Peripherals) 174,780 Cisco Systems* (Communications Equipment) . . . . . . . . . . . . 10,500 190,208 Computer Associates International (Systems Software) . . . . . . . . 17,200 593,228 Computer Sciences (IT Consulting and Services) 230,206 Comverse Technology (Communications Equipment) 67,065 Convergys* (IT Consulting and Services) 269,928 Credence Systems* (Semiconductor Equipment) 174,605
SHARES VALUE ------ ---------- UNITED STATES (continued) CSG Systems International* (IT Consulting and Services) . . . . . . . . . 17,700 $ 716,054 J.D. Edwards* (Application Software) . . . . . . . . . . . 7,000 115,465 Electro Scientific Industries* (Semiconductor Equipment). . . . . . . . . . . 8,600 258,688 Electronic Data Systems (IT Consulting and Services) . . . . . . . . . . . 3,100 212,505 Electronics For Imaging* (Computers and Peripherals) . . 21,100 472,429 FEI* (Semiconductor Equipment). . . . . . . . . . . 3,200 100,816 Garmin* (Communications Equipment). . . . . . . . . . . 14,600 310,104 KPMG Consulting*(IT Consulting and Services) . . . . . . . . . 5,500 91,437 Lattice Semiconductor* (Semiconductors). . . . . . . . 13,100 269,401 Lexmark International (Class A)* (Computers and Peripherals). . . . . . . . . . 9,900 584,100 Mercury Computer Systems* (Computers and Peripherals). . . . . . . . . . 3,000 117,735 Microsoft (Systems Software) . . . . . . . . . . . 14,000 927,570 Microtune* (Semiconductors). . . . . . . . 1,200 28,146 MSC.Software (Application Software) . . . . . . . . . . . 9,000 140,400 Peregrine Systems* (Application Software) . . . . . . . . . . . 14,800 219,410 Sabre Holdings (Class A)* (Commercial Services and Supplies) . . . . . . . . . 6,000 254,100 Sanmina-SCI* (Electronic Equipment and Instruments). . . . . . . . . . 14,800 294,446 SunGard Data Systems* (IT Consulting and Services) . . . . . . . . . 21,400 619,102 Symantec* (Application Software) . . . . . . . . . . . 17,600 1,167,672 ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-39 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE ------ ----------- UNITED STATES (continued) Synopsys* (Electronic Equipment and Instruments) . . . . . . . 18,200 $ 1,075,165 UTStarcom* (Communications Equipment ). . . . . . . . . . 9,200 261,832 Veeco Instruments* (Electronic Equipment and Instruments) . . 4,500 162,247 ----------- 12,474,415 -----------
VALUE ------------ TOTAL INVESTMENTS - 85.3% (Cost $19,276,865) $ 18,545,167 OTHER ASSETS LESS LIABILITIES - 14.7%. 3,206,920 ------------ NET ASSETS - 100.0% $21,752,087 ------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO PRINCIPAL AMOUNT VALUE ---------- -------- CORPORATE BONDS - 87.6% AEROSPACE - 0.2% Alliant Techsystems 8 1/2%, 5/15/2011. . . . . $ 25,000 $ 26,125 -------- AUTOMOTIVE AND RELATED - 2.1% Collins & Aikman Products 10 3/4%, 12/31/2011+ . . . 50,000 50,375 CSK Auto 12%, 6/15/2006+. . 25,000 25,313 Diamond Triumph Automotive 9 1/4%, 4/1/2008 . . . . . 100,000 92,625 Dura Operating 9%, 5/1/2009. . . . . . . . . 50,000 47,250 Pennzoil Quaker State 10%, 11/1/2008+ . . . . . 50,000 52,500 -------- 268,063 -------- BROADCASTING - 3.8% AMFM Operating 125/8%, 10/31/2006. . . . . . . . 51,800 55,361 Canwest Media 10 5/8%, 5/15/2011.. . . . . . . . 40,000 42,750 Cumulus Media 10 3/8%, 7/1/2008. . . . . . . . . 125,000 131,562 Nextmedia 10 3/4%, 7/1/2011+ . . . . . . . . 25,000 25,938 Radio One 87/8%, 7/1/2011 . 15,000 15,562 Sinclair Broadcast Group 8 3/4%, 12/15/2011+. . . . 25,000 25,125
PRINCIPAL AMOUNT VALUE ---------- -------- BROADCASTING (continued) Spanish Broadcasting System 9 5/8%, 11/1/2009. . . . . . . . $ 150,000 $149,250 Young Broadcasting 8 1/2%,12/15/2008+ . . . . . . . 25,000 25,250 -------- 470,798 -------- BUSINESS SERVICES - 1.0% Iron Mountain 8 5/8%, 4/1/2013. . . . . . . . . . . . 40,000 41,800 Muzak 9 7/8%, 3/15/2009. . . . . . 95,000 84,075 -------- 125,875 -------- CABLE SYSTEMS AND SATELLITE VIDEO - 18.1% Adelphia Communications: 10 1/4%, 11/1/2006 . . . . . . . 75,000 76,875 9 7/8%, 3/1/2007 . . . . . . . . 75,000 74,719 10 7/8%, 10/1/2010 . . . . . . . 150,000 153,937 10 1/4%, 6/15/2011 . . . . . . . 200,000 200,500 Charter Communications Holdings: 8 5/8%, 4/1/2009 . . . . . . . . 25,000 24,188 10%, 4/1/2009 . . . . . . . . . 235,000 242,343 11 1/8%, 1/15/2011 . . . . . . . 125,000 133,125 10%, 5/15/2011+ . . . . . . . . 50,000 51,125 Echostar: 9 1/8%, 1/15/2009+ . . . . . . . 225,000 226,687 9 3/8%, 2/1/2009 . . . . . . . . 100,000 103,500 GCI 9 3/4%, 8/1/2007 . . . . . . . 170,000 166,600 ---------------- * Non-income producing security. + Rule 144A security. See Notes to Financial Statements.
- P-40 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- ---------- CABLE SYSTEMS AND SATELLITE VIDEO (continued) Paxson Communications 10 3/4%, 7/15/2008 . . . . . . . $ 25,000 $ 26,344 Pegasus Communications: 9 3/4%, 12/1/2006. . . . . . . . 25,000 22,625 12 1/2%, 8/1/2007. . . . . . . . 200,000 203,000 Pegasus Satellite 12 3/8%, 8/1/2006. . . . . . . . . . . . 200,000 197,000 Quebecor Media 11 1/8%, 7/15/2011.. . . . . . . . . . . 200,000 214,500 Rogers Cablesystems 11%, 12/1/2015.. . . . . . . . . . . 135,000 153,900 ---------- 2,270,968 ---------- CHEMICALS - 4.6% Equistar Chemicals 10 1/8%, 9/1/2008. . . . . . . . . . . . 15,000 15,150 IMC Global 10 7/8%, 6/1/2008+ . . 25,000 26,750 International Specialty Holdings 105/8%, 12/15/2009+ . . . . . . 25,000 25,125 Koppers Industry 9 7/8%, 12/1/2007.. . . . . . . . . . . 100,000 98,500 Lyondell Chemical: 9 1/2%, 12/15/2008+ . . . . . . 25,000 24,875 10 7/8%, 5/1/2009 . . . . . . . 25,000 23,187 Lyondell Chemical (Series B) 9 7/8%, 5/1/2007 . . . . . . . 125,000 125,938 Millennium America 91/4%, 6/15/2008.. . . . . . . . . . . 25,000 25,625 OM Group 9 1/4%, 12/15/2011+ . . . . . . . . . . 25,000 25,625 Texas Petrochemicals 111/8%, 7/1/2006. . . . . . . . . . . . 225,000 187,875 ---------- 578,650 ---------- COMMUNICATIONS INFRASTRUCTURE - 3.3% American Tower 9 3/8%, 2/1/2009. . . . . . . . . . . . 200,000 162,000 Crown Castle International: 0% (10 5/8%**), 11/15/2007. . . 150,000 126,750 10 3/4%, 8/1/2011 . . . . . . . 125,000 122,813 ---------- 411,563 ---------- CONSUMER PRODUCTS - 0.1% Armkell 9 1/2%, 8/15/2009+. . . . 10,000 10,550 ----------
PRINCIPAL AMOUNT VALUE ---------- -------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS - 0.4% Flextronics International 9 7/8%, 7/1/2010 . . . . . . $ 50,000 $ 52,750 -------- ENERGY - 4.2% Abraxas Petroleum 11 1/2%, 11/1/2004. . . . . . . . . . 75,000 56,625 Chesapeake Energy 8 3/8%, 11/1/2008+ . . . . . . . . . 250,000 248,125 Compass Minerals Group 10%, 8/15/2011+. . . . . . . 25,000 26,062 El Paso Energy Partnership 8 1/2%, 6/1/2011 . . . . . . 10,000 10,150 Forest Oil 8%, 12/15/2011+ . . 75,000 75,375 Lone Star Technologies 9%, 6/1/2011 . . . . . . . . 10,000 8,450 Stone Energy 8 1/4%, 12/15/2011+. . . . . . . . . 50,000 51,000 Westport Resources 8 1/4%, 11/1/2011+ . . . . . . . . . 50,000 50,750 -------- 526,537 -------- ENVIRONMENTAL SERVICES - 2.1% Allied Waste North America 10%, 8/1/2009. . . . . . . . 250,000 258,750 -------- EQUIPMENT - 1.7% BRL Universal Equipment 8 7/8%, 2/15/2008. . . . . . 25,000 26,125 Neff 101/4%, 6/1/2008. . . . . 25,000 14,875 Williams Scotsman 9 7/8%, 6/1/2007 . . . . . . . . . . 175,000 173,250 -------- 214,250 -------- FINANCIAL SERVICES - 1.7% Conseco 9%, 10/15/2006 . . . . 25,000 11,125 Dollar Financial Group 10 7/8%, 11/15/2006. . . . . 125,000 121,875 IOS Capital 9 3/4%, 6/15/2004. 25,000 25,075 Ocwen Capital Trust I 10 7/8%, 8/1/2027. . . . . . 50,000 40,250 Yell Financial 10 3/4%, 8/1/2011 . . . . . . . . . . 10,000 10,750 -------- 209,075 -------- ---------------- + Rule 144A security. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements.
- P-41 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- ---------- FOOD - 0.4% Land O Lakes 83/4%, 11/15/2011+. . . . . . . . . $ 50,000 $ 48,500 ---------- FUNERAL SERVICES - 0.8% Service Corp. International 7.20%, 6/1/2006. . . . . . . 75,000 67,875 Stewart Enterprises 103/4%, 7/1/2008 . . . . . . . . . . 25,000 27,375 ---------- 95,250 ---------- GAMING/HOTELS - 12.8% Alliance Gaming 10%, 8/1/2007 . . . . . . . . . . 75,000 78,375 Aztar 9%, 8/15/2011+ . . . . . 25,000 25,875 Boyd Gaming 91/2%, 7/15/2007. . . . . . . . . . 100,000 99,250 Hollywood Casino: 13%, 8/1/2006. . . . . . . . 25,000 23,750 111/4%, 5/1/2007 . . . . . . 150,000 162,938 Host Marriot: 8 3/8%, 2/15/2006. . . . . . 150,000 145,125 9 1/2%, 1/15/2007+ . . . . . 150,000 150,937 9 1/4%, 10/1/2007. . . . . . 25,000 25,031 Isle of Capri Casinos 8 3/4%, 4/15/2009. . . . . . . . . . 50,000 48,375 ITT 63/4%, 11/15/2005. . . . . 25,000 24,282 Mandalay Resort Group: 10 1/4%, 8/1/2007. . . . . . 50,000 52,125 9 3/8%, 2/15/2010+ . . . . . 175,000 175,219 MGM Mirage 83/8%, 2/1/2011 . . 50,000 49,625 Park Place Entertainment: 8 1/2%, 11/15/2006 . . . . . 25,000 26,006 9 3/8%, 2/15/2007. . . . . . 250,000 261,875 8 7/8%, 9/15/2008. . . . . . 50,000 51,063 Station Casinos 9 7/8%, 7/1/2010 . . . . . . . . . . . 200,000 204,250 ---------- 1,604,101 ---------- HEALTH CARE/ MEDICAL PRODUCTS - 1.2% Alliance Imaging 10 3/8%, 4/15/2011. . . . . . . . . . 25,000 26,625 Beverly Enterprises 9 5/8%, 4/15/2009. . . . . . . . . . 10,000 10,550 Fresenius Medical Care 9%, 12/1/2006. . . . . . . . 25,000 25,813
PRINCIPAL AMOUNT VALUE ---------- -------- HEALTH CARE/ MEDICAL PRODUCTS (continued) Magellan Health Services: 9 3/8%, 11/15/2007+. . . . . $ 45,000 $ 45,900 9%, 2/15/2008. . . . . . . . 50,000 44,750 -------- 153,638 -------- INDUSTRIAL/ MANUFACTURING - 3.3% Airxcel 11%, 11/15/2007. . . . 50,000 27,250 AK Steel 91/8%, 12/15/2006 . . 25,000 25,687 Alliance Laundry System 9 5/8%, 5/1/2008 . . . . . . 75,000 41,625 Day International Group 9 1/2%, 3/15/2008. . . . . . 75,000 49,875 Great Lakes Carbon 10 1/4%, 5/15/2008 . . . . . 79,000 47,795 Healthsouth 7%, 6/15/2008. . . 75,000 73,500 Dr. Horton 8%, 2/1/2009. . . . 50,000 49,750 KB Home 8 5/8%, 12/15/2008 . . 50,000 50,500 Schuler Homes 10 1/2%, 7/15/2011+ . . . . . . . . . 25,000 26,188 WCI Communities 10 5/8%, 2/15/2011. . . . . . . . . . 25,000 25,937 -------- 418,107 -------- LEISURE - 0.6% Affinity Group Holding 11%, 4/1/2007. . . . . . . . 100,000 82,500 -------- PAGING - 0.1% Metrocall: 9 3/4%, 11/1/2007* . . . . . 200,000 2,500 11%, 9/15/2008*. . . . . . . 390,000 4,875 ProNet 11 7/8%, 6/15/2005* . . 265,000 3,313 -------- 10,688 -------- PAPER AND PACKAGING - 0.2% Potlatch 10%, 7/15/2011. . . . 25,000 26,125 -------- PRINTING AND PUBLISHING - 10.3% Advanstar Communications 12%, 2/15/2011. . . . . . . . . . 50,000 35,750 American Media Operations 10 1/4%, 5/1/2009. . . . . . 75,000 76,125 Garden State Newspapers 8 3/4%, 10/1/2009. . . . . . 50,000 49,562 ---------------- + Rule 144A security. * None-income producing security, issuer in default. See Notes to Financial Statements.
- P-42 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- ---------- PRINTING AND PUBLISHING (continued) Perry-Judd 10 5/8%, 12/15/2007 . . . . . . . . . . $ 140,000 $ 133,000 Primedia: 10 1/4%, 6/1/2004. . . . . . . 25,000 23,750 8 7/8%, 5/15/2011. . . . . . . 75,000 67,875 Regional Independent Media Group 10 1/2%, 7/1/2008. . . . . 125,000 128,750 TDL Infomedia Holdings 0% (15 1/2%**) 10/15/2010. . . 600,000 483,750 TransWestern Holdings 0% (11 7/8%**), 11/15/2008 . . 200,000 167,000 TransWestern Publishing 9 5/8%, 11/15/2007 . . . . . . 50,000 51,500 Von Hoffman Press 10 7/8%, 5/15/2007+. . . . . . 75,000 67,875 ---------- 1,284,937 ---------- RETAILING - 2.6% NBC Acquisition 0% (10 3/4%**), 2/15/2009. . . . . . . . . . . 420,000 300,300 Nebraska Book 8 3/4%, 2/15/2008. . . . . . . . . . . 25,000 23,375 ---------- 323,675 ---------- SEMICONDUCTORS - 2.1% Amkor Technology: 9 1/4%, 5/1/2006 . . . . . . . 100,000 96,000 10 1/2%, 5/1/2009. . . . . . . 75,000 67,500 Fairchild Semiconductor 10 3/8%, 10/1/2007+. . . . . . 75,000 78,563 Transwitch 4 1/2%, 9/12/2005 . . 30,000 17,700 ---------- 259,763 ---------- TELECOMMUNICATIONS - 0.4% Talton Holdings 11%, 6/30/2007. . . . . . . . . . . 75,000 48,375 ---------- TRANSPORTATION - 0.9% Atlas Air 10 3/4%, 8/1/2005. . . 125,000 111,875 ---------- UTILITIES - 4.1% AES: 1/2%, 6/1/2009 . . . . . . . . 125,000 114,375 9 3/8%, 9/15/2010. . . . . . . 50,000 45,250 8 7/8%, 2/15/2011. . . . . . . 60,000 53,100
PRINCIPAL AMOUNT OR SHARES VALUE ---------- ----------- UTILITIES (continued) Calpine 8 1/2%, 2/15/2011. . . . . $ 25,000 $ 22,784 Calpine Energy 8 1/2%, 5/1/2008 .. 100,000 91,570 CMS Energy 8 1/2%, 4/15/2011 . . . 75,000 75,069 Midland Cogeneration Venture 11 3/4%, 7/23/2005 . . . . . . . 100,000 109,163 ----------- 511,311 ----------- WIRELESS TELECOMMUNICATIONS - 4.5% Centennial Cellular 103/4%, 12/15/2008 . . . . . . . . . . . 200,000 169,000 Dobson Communications 10 7/8%, 7/1/2010. . . . . . . . 50,000 51,875 Nextel Communications 9 3/8%, 11/15/2009 . . . . . . . 275,000 217,937 Powertel 11 1/8%, 6/1/2007 . . . . 65,000 69,875 Rogers Wireless 9 5/8%, 5/1/2011 . 25,000 25,875 Triton PCS 8 3/4%, 11/15/2011+ . . 25,000 25,125 ----------- 559,687 ----------- TOTAL CORPORATE BONDS (Cost $12,035,497) 10,962,486 ----------- PREFERRED STOCKS - 4.3% BROADCASTING - 1.8% Cumulus Media 13 3/4%. . . . . . . 74 shs. 74,925 Sinclair Capital 11 5/8% . . . . . 1,500 151,875 ----------- 226,800 ----------- CABLE SYSTEMS AND SATELLITE VIDEO - 0.9% Pegasus Communications (Series A) 12 3/4% . . . . . . . 152 109,820 ----------- COMMUNICATIONS INFRASTRUCTURE - 0.1% Crown Castle International 12 3/4%. . . . . . . . . . . . . 10 5,525 ----------- WIRELESS TELECOMMUNICATIONS - 1.5% Rural Cellular 11 3/8% . . . . . . 221 188,402 ----------- TOTAL PREFERRED STOCKS (Cost $613,444) 530,547 ----------- ---------------- + Rule 144A security. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements.
- P-43 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- -------- CONVERTIBLE BONDS - 1.3% CONTRACT MANUFACTURING/ CIRCUIT BOARDS - 0.2% SCI Systems 3%, 3/15/2007. $ 25,000 $ 20,750 -------- SEMICONDUCTORS - 1.1% Analog Devices 43/4%, 10/1/2005. . . . . . . . 40,000 38,050 Cypress Semiconductor 4%, 2/1/2005 . . . . . . 50,000 43,063 Lattice Semiconductor 4 3/4%, 11/1/2006. . . . 25,000 30,062 LSI Logic 4%, 2/15/2005. . 40,000 33,950 -------- 145,125 -------- TOTAL CONVERTIBLE BONDS (Cost $167,532) 165,875 --------
PRINCIPAL AMOUNT VALUE ---------- ----------- REPURCHASE AGREEMENT - 5.7% (Cost $710,000) State Street Bank & Trust, 1.60%, dated 12/31/2001, maturing 1/2/2002, collateralized by: $ 740,000 US Treasury Bills, 6/20/2002, with a fair market value of $733,710 . . . . . . . . . $ 710,000 $ 710,000 ----------- TOTAL INVESTMENTS - 98.9% (Cost $13,526,473). . . . . . . . 12,368,908 OTHER ASSETS LESS LIABILITIES - 1.1% . . . . . 140,686 ----------- NET ASSETS - 100.0% . . . . . . . . $12,509,594 ===========
SELIGMAN INCOME PORTFOLIO SHARES VALUE ------ -------- COMMON STOCKS - 59.3% CAPITAL GOODS - 4.3% General Electric. . . . . . 2,400 $ 96,192 Masco . . . . . . . . . . . 680 16,660 United Technologies . . . . 1,240 80,141 -------- 192,993 -------- CHEMICALS - 1.1% Air Products and Chemicals. 990 46,441 -------- COMMUNICATIONS EQUIPMENT - 0.8% QUALCOMM* . . . . . . . . . 710 35,837 -------- COMPUTERS AND PERIPHERALS - 1.9% Compaq Computer . . . . . . 1,800 17,568 EMC*. . . . . . . . . . . . 1,320 17,741 International Business Machines .. . . . . . . . . 410 49,594 -------- 84,903 --------
SHARES VALUE ------ -------- CONSUMER STAPLES - 3.4% Coca-Cola. . . . . . . . . 540 $ 25,461 Kraft Foods (Class A)* . . 1,150 39,135 PepsiCo. . . . . . . . . . 630 30,675 Philip Morris .. . . . . . 1,180 54,103 -------- 149,374 -------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 0.6% Jabil Circuit* . . . . . . 1,130 25,674 -------- ENERGY - 4.2% Baker Hughes . . . . . . . 490 17,870 BP (ADRs) (United Kingdom) 690 32,092 ChevronTexaco. . . . . . . 190 17,026 Exxon Mobil .. . . . . . . 2,264 88,975 Royal Dutch Petroleum (NY Shares) (Netherlands). 590 28,922 -------- 184,885 -------- ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-44 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
SHARES VALUE ------ -------- FINANCIALS - 10.2% American International Group . . 882 $ 70,031 Bank of America. . . . . . . . . 350 22,033 Bank of New York . . . . . . . . 1,260 51,408 Chubb. . . . . . . . . . . . . . 840 57,960 Citigroup. . . . . . . . . . . . 1,543 77,891 Fannie Mae . . . . . . . . . . . 1,100 87,450 Merrill Lynch .. . . . . . . . . 520 27,102 Principal Financial Group (The)* . . . . . . . . . . 400 9,600 XL Capital (Class A) (Bermuda). . . . . . . . . . . . 560 51,162 -------- 454,637 -------- HEALTH CARE - 8.3% Abbott Laboratories. . . . . . . 830 46,273 Baxter International . . . . . . 1,500 80,445 Bristol-Myers Squibb . . . . . . 520 26,520 Genentech* . . . . . . . . . . . 320 17,360 Johnson & Johnson. . . . . . . . 850 50,235 Pfizer . . . . . . . . . . . . . 1,750 69,738 St. Jude Medical . . . . . . . . 1,040 80,756 -------- 371,327 -------- HOTELS, RESTAURANTS AND LEISURE- 0.5% Starwood Hotels & Resorts Worldwide. . . . . . . . . . . . 810 24,179 -------- MEDIA - 4.1% AOL Time Warner* . . . . . . . . 1,000 32,100 Clear Channel Communications*. . . . . . . . . 340 17,309 Comcast (Class A)* . . . . . . . 1,140 41,046 Interpublic Group of Companies (The). . . . . . . . . 520 15,361 News Corp. (ADRs) (Australia) .. 1,720 54,713 Viacom (Class A)*. . . . . . . . 450 19,867 -------- 180,396 -------- PAPER AND FOREST PRODUCTS - 1.6% Bowater. . . . . . . . . . . . . 600 28,620 Weyerhaeuser . . . . . . . . . . 810 43,805 -------- 72,425 --------
SHARES VALUE ------ ---------- RETAILING - 5.4% Costco Wholesale* . . . . 770 $ 34,180 Home Depot (The). . . . . 640 32,646 Limited (The) . . . . . . 1,780 26,202 May Department Stores . . 840 31,063 Sears, Roebuck. . . . . . 1,100 52,404 Wal-Mart Stores . . . . . 1,130 65,031 ---------- 241,526 ---------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 4.7% Agere Systems (Class A)*. 5,340 30,385 Analog Devices* . . . . . 930 41,283 Intel . . . . . . . . . . 1,900 59,745 Micron Technology . . . . 540 16,740 Novellus Systems* . . . . 630 24,869 Xilinx* . . . . . . . . . 920 35,917 ---------- 208,939 ---------- SOFTWARE AND SERVICES - 3.4% Citrix Systems* . . . . . 700 15,865 Microsoft*. . . . . . . . 1,590 105,345 Oracle* . . . . . . . . . 1,200 16,578 VERITAS Software* . . . . 340 15,244 ---------- 153,032 ---------- TELECOMMUNICATION SERVICES - 3.4% AT&T. . . . . . . . . . . 1,240 22,494 SBC Communications. . . . 1,419 55,582 Sprint FON Group. . . . . 840 16,867 Sprint PCS Group* . . . . 1,200 29,292 Verizon Communications. . 540 25,628 Williams Communications Group*. . . . . . . . . 904 2,124 ---------- 151,987 ---------- TRANSPORTATION - 0.7% AMR . . . . . . . . . . . 1,390 30,816 ---------- UTILITIES - 0.7% El Paso . . . . . . . . . 738 32,922 ---------- TOTAL COMMON STOCKS (Cost $2,701,466) 2,642,293 ---------- ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-45 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- -------- SUBORDINATED CONVERTIBLE BONDS - 13.2% ELECTRONIC TECHNOLOGY - 13.2% Amkor Technology 5%, 3/15/2007 . . . . . . . . . . $ 100,000 $ 68,750 Conexant Systems 4%, 2/1/2007. . . . . . . . . 150,000 97,687 Cypress Semiconductor 4%, 2/1/2005. . . . . . . . . 100,000 86,125 LSI Logic 4%, 2/15/2005 . . . . 100,000 84,875 NVIDIA 4 3/4%, 10/15/2007 . . . 150,000 250,313 -------- TOTAL SUBORDINATED CONVERTIBLE BONDS (Cost $462,726) 587,750 -------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES - 12.3% US GOVERNMENT SECURITIES - 6.2% US Government Gtd. Title XI (Bay Transportation) 7.30%, 6/1/2021 . . . . . . . 88,000 93,852 US Treasury Bonds: 7 1/2%, 11/15/2016. . . . . . 35,000 41,400 6 1/4%, 8/15/2023 . . . . . . 55,000 58,240 6 1/4%, 5/15/2030 . . . . . . 20,000 21,671 US Treasury Notes: 3%, 11/30/2003. . . . . . . . 20,000 20,020 5%, 8/15/2011 . . . . . . . . 40,000 39,912 -------- Total US Government Securities (Cost $271,946) 275,095 -------- MORTGAGE-BACKED SECURITIES+ - 3.8% FHLMC GOLD: 7 1/2%, 10/1/2017 . . . . . . 31,610 32,951 8%, 12/1/2023 . . . . . . . . 17,855 19,003 FNMA: 8 1/2%, 10/1/2015 . . . . . . 21,848 23,151 6%, 5/1/2016. . . . . . . . . 23,712 23,793 6 1/2%, 5/1/2018. . . . . . . 23,993 24,349 7%, 10/1/2020 . . . . . . . . 11,158 11,439
PRINCIPAL AMOUNT VALUE ---------- --------- FNMA (continued): 8%, 6/1/2028 . . . . . . $ 16,070 $ 17,021 6%, 9/1/2028 . . . . . . 12,096 11,917 6,072 7%, 12/1/2029. . . . . . 5,947 -------- Total Mortgage-Backed Securities 169,696 (Cost $163,733) -------- AGENCY SECURITIES - 2.3% FHLMC: 5 1/2%, 7/15/2006. . . . 15,000 15,431 6 5/8%, 9/15/2009. . . . 25,000 26,655 6 3/4%, 3/15/2031. . . . 40,000 42,668 FNMA: 5 1/4%, 6/15/2006. . . . 5,000 5,095 4 3/4%, 1/2/2007 . . . . 15,000 14,916 --------- Total Agency Securities (Cost $104,741) 104,765 --------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $540,420) 549,556 --------- CORPORATE BONDS - 11.7% AUTOMOTIVE AND COMPONENTS - 0.2% Ford Motor 7.45%, 7/16/2031. . . . . . . . 10,000 9,188 --------- CHEMICALS - 0.2% Ashland 6.86%, 5/1/2009. . 10,000 10,004 --------- COMMERCIAL SERVICES AND SUPPLIES - 0.6% Associates Corp. of North America 6.95%, 11/1/2018. . . . . . . . 15,000 15,480 Pitney Bowes 5 3/4%, 8/15/2008. . . . . . . . 15,000 14,954 --------- 30,434 --------- ---------------- + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements.
- P-46 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- -------- ENERGY - 0.5% Coastal 7 5/8%, 9/1/2008. . . $ 20,000 $ 20,531 -------- FINANCIALS - 4.6% American General 7 1/2%, 8/11/2010.. . . . . . . . . 15,000 16,484 Bank of America 4 3/4%, 10/15/2006. . . . . . . . . 20,000 19,602 Bank One Texas 6 1/4%, 2/15/2008.. . . . . . . . . 20,000 20,375 Capital One Bank 6 7/8%, 2/1/2006. . . . . . . . . . 15,000 14,647 FleetBoston Financial 4 7/8% 12/1/2006. . . . . . 20,000 19,571 General Motors Acceptance 6 7/8%, 9/15/2011 . . . . . 15,000 14,719 Household Finance 6 1/2%, 11/15/2008. . . . . . . . . 15,000 14,998 International Lease Finance 5 1/2%, 6/7/2004. . . . . . 20,000 20,409 Mercantile Bancorp 7.30%, 6/15/2007.. . . . . . . . . 20,000 21,467 Morgan Stanley Group 6 3/4%, 4/15/2011.. . . . . . . . . 20,000 20,496 PNC Funding 5 3/4%, 8/1/2006. 20,000 20,309 -------- 203,077 -------- HEALTH CARE - 0.5% Abbott Laboratories 5 1/8%, 7/1/2006. . . . . . . . . . 20,000 20,568 -------- MANUFACTURING - 0.2% Emerson Electronic 5 3/4%, 11/1/2011.. . . . . . . . . 10,000 9,708 -------- MEDIA - 0.6% CSC Holdings 7 1/4%, 7/15/2008.. . . . . . . . . 25,000 24,792 -------- RETAILING - 0.5% Kohl's 7 1/4%, 6/1/2029 . . . 10,000 10,568 Target 5.40%, 10/1/2008 . . . 10,000 9,890 -------- 20,458 --------
PRINCIPAL AMOUNT VALUE ---------- ---------- TELECOMMUNICATION SERVICES - 2.0% Bellsouth 5%, 10/15/2006. . . . $ 10,000 $ 9,936 GTE California 6.70%, 9/1/2009. 20,000 20,620 GTE North 5.65%, 11/15/2008 . . 20,000 19,650 Qwest Communications International 7 1/2%, 11/1/2008.. . . . . . . . . . 20,000 20,250 Worldcom 7 3/4%, 4/1/2027 . . . 20,000 20,721 ---------- 91,177 ---------- UTILITIES - 1.8% Cinergy 6 1/4%, 9/1/2004. . . . 20,000 20,138 Florida Power & Light 6%, 6/1/2008. . . . . . . . . 10,000 10,082 General Electric Capital 6 1/2%, 12/10/2007. . . . . . 15,000 15,957 National Rural Utilities 6%, 5/15/2006 . . . . . . . . 15,000 15,253 Ocean Energy 8 1/4%, 7/1/2018. . . . . . . . . . . 20,000 21,150 ---------- 82,580 ---------- TOTAL CORPORATE BONDS (Cost $521,642) . . . . . . . 522,517 ---------- FOREIGN GOVERNMENT SECURITIES - 0.5% (Cost $24,241) Quebec Province Canada 7 1/2%, 9/15/2029 . . . . . . 20,000 22,378 ---------- ASSET-BACKED SECURITIES+ - 0.3% (Cost $13,500) TRANSPORTATION - 0.3% United Air Lines 7.032%, 10/1/2010.. . . . . . . . . . 13,500 12,845 ---------- TOTAL INVESTMENTS - 97.3% (Cost $4,263,995) 4,337,339 OTHER ASSETS LESS LIABILITIES - 2.7% 121,448 ---------- NET ASSETS - 100.0% $4,458,787 ========== ---------------- + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements.
- P-47 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO
SHARES VALUE --------- -------- COMMON STOCKS - 98.1% AUSTRALIA - 2.1% BHP Billiton (Metals and Mining) . . . 6,000 $ 32,247 Westpac Banking (Banks). . . . . . . . 8,200 66,126 -------- 98,373 -------- BELGIUM - 0.9% Omega Pharma (Consumer Staples) . . . . . . . . . 900 40,738 -------- CANADA - 1.5% Barrick Gold (Metals and Mining) . . . 2,800 44,660 Weston (George) (Consumer Staples) . . . . . . . . . 400 25,975 -------- 70,635 -------- FINLAND - 3.8% Nokia (Communications Equipment) . . . . . . . . . . . . . . 3,900 100,537 UPM-Kymmene (Paper and Forest Products) . . . . . . . . . 2,500 82,895 -------- 183,432 -------- FRANCE - 15.6% Aventis (Health Care). . . . . . . . . 1,450 102,935 Carrefour* (Consumer Staples). . . . . 1,200 62,382 Castorama Dubois Investissement (Retailing) . . . . . 1,100 56,645 France Telecom (Telecommunication Services) .. . . . . . . . . . . . . 1,400 55,986 Groupe Danone (Consumer Staples) . . . . . . . . . 200 24,390 LVMH Moet Hennessy Louis Vuitton (Textiles and Apparel) . . . . 1,300 52,884 Peugeot (Automobiles and Components). . . . . . . . . . . 1,300 55,256 Sanofi-Synthelabo (Health Care). . . . . . . . . . . . 1,560 116,367 TotalFinaElf (ADRs) (Energy) . . . . . 805 114,938 Vivendi Universal (Media). . . . . . . 2,000 107,580 -------- 749,363 -------- GERMANY - 7.5% Allianz (Insurance). . . . . . . . . . 400 94,712 Deutsche Bank* (Banks) . . . . . . . . 1,150 81,280 Deutsche Telekom (Telecommunication Services). . . . . . . . . . . . . . 2,250 38,655 ____________________ * Non-income producing security. See Notes to Financial Statements.
SHARES VALUE -------- -------- GERMANY (continued) E.ON (Utilities). . . . . . . . . . 1,550 $ 80,273 SAP (Software and Services) . . . . 500 65,114 -------- 360,034 -------- HONG KONG - 3.5% Aluminum Corp. of China (ADRs)* (Metals and Mining) . . . . . . . 2,400 41,952 CNOOC (Energy). . . . . . . . . . . 43,500 41,002 Hutchison Whampoa (Capital Goods) . . . . . . . . . 9,000 87,140 -------- 170,094 -------- IRELAND - 2.7% Bank of Ireland (Banks) . . . . . . 9,064 85,766 Elan (ADRs)* (Health Care). . . . . 1,000 45,060 -------- 130,826 -------- ISRAEL - 2.0% Check Point Software Technologies* (Software and Services) . . . . . 1,200 47,874 RADVision* (Communications Equipment). . . . . . . . . . . . 6,000 45,450 -------- 93,324 -------- ITALY - 2.2% Assicurazioni Generali (Insurance) . . . . . . . . . . . 3,800 105,536 -------- JAPAN - 15.3% Benesse (Commercial Services and Supplies). . . . . . 2,100 54,500 Bridgestone (Automobiles and Components) . . . . . . . . . 5,500 58,228 Chugai Pharmaceutical (Health Care) . . . . . . . . . . 2,000 23,189 Citizen Watch (Electronic Equipment and Instruments). . . . 5,000 24,922 Dai Nippon Printing (Commercial Services and Supplies). . . . . . 3,000 29,998 Drake Beam Morin-Japan (Commercial Services and Supplies) . . . . . . . . . . 300 20,609 Honda Motor (Automobiles and Components) . . . . . . . . . 2,900 115,770 Keyence (Electronic Equipment and Instruments). . . . . . . . . 200 33,265 NEC (Electronic Equipment and Instruments). . . . . . . . . 2,000 20,411 ____________________ * Non-income producing security. See Notes to Financial Statements.
- P-48 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ -------- JAPAN (continued) Nintendo (Leisure Equipment and Products). . . . . . . . . . . . . 300 $ 52,553 Nippon System Development (Software and Services). . . . . . . . 600 23,907 Nomura Holdings (Diversified Financials) . . . . . . . 3,700 47,447 NTT DoCoMo (Telecommunication Services) .. . . . . . . . . . . . . . 4 47,019 Promise (Diversified Financials). . . . . . . . . . . . . . 900 48,706 Takeda Chemical Industries (Health Care). . . . . . . . . . . . . 800 36,211 Takefuji (Diversified Financials). . . . 300 21,708 Toyota Motor (Automobiles and Components). . . . . . . . . . . . 1,700 43,081 Yahoo Japan* (Software and Services). . . . . . . . . . . . . 1 31,143 -------- 732,667 -------- NETHERLANDS - 5.7% Aegon (Insurance). . . . . . . . . . . . 1,736 46,977 Elsevier (Media) . . . . . . . . . . . . 4,600 54,377 ING Groep (Diversified Financials). . . . . . . . . . . . . . 940 23,964 Royal Dutch Petroleum (NY Shares) (Energy) . . . . . . . . . . 900 44,118 STMicroelectronics (Semiconductors) . . . . . . . . . . . 1,300 41,717 Unilever (Consumer Staples). . . . . . . 1,100 63,371 -------- 274,524 -------- SINGAPORE - 0.6% Venture Manufacturing (Electronic Equipment and Instruments) . 4,000 28,811 -------- SOUTH KOREA - 0.4% Samsung Electronics (Semiconductors) . . . . . . . . . . . 100 21,322 -------- SPAIN - 6.2% Banco Bilbao Vizcaya Argentaria (Banks). . . . . . . . . . . . . . . . 5,500 68,052 Banco Popular Espa ol (Banks). . . . . . 3,125 102,590 Sogecable* (Media) . . . . . . . . . . . 2,000 46,288 Telef nica* (Telecommunication Services) .. . . . . . . . . . . . . . 1,668 22,316 ____________________ * Non-income producing security. See Notes to Financial Statements.
SHARES VALUE -------- ---------- SPAIN (continued) Union Fenosa* (Utilities). . . . . . . 3,700 $ 59,877 ---------- 299,123 ---------- SWEDEN - 0.5% L.M. Ericsson Tel. (Communications Equipment) . . . . . 4,000 21,812 ---------- SWITZERLAND - 6.8% Credit Suisse Group (Banks). . . . . . 1,400 59,725 Novartis (Health Care) . . . . . . . . 1,400 50,615 Serono (Health Care) . . . . . . . . . 50 43,655 Swiss Re (Insurance) . . . . . . . . . 800 80,501 UBS (Diversified Financials) . . . . . 1,190 60,088 UBS (ADRs) (Diversified Financials). . . . . . . . . . . . . 600 30,000 ---------- 324,584 ---------- UNITED KINGDOM - 20.8% AstraZeneca (ADRs) (Health Care). . . . . . . . . . . . 1,200 55,920 BAA (Transportation) . . . . . . . . . 5,730 45,858 Barclays Bank (Banks). . . . . . . . . 1,500 49,611 BHP Billiton (Metals and Mining). . . . . . . . . . . . . 11,800 59,870 BP (Energy) .. . . . . . . . . . . . . 2,900 134,879 British American Tobacco (ADRs) (Consumer Staples) . . . . . . . . . 3,300 56,100 Centrica (Utilities) . . . . . . . . . 8,350 26,949 Diageo (Consumer Staples). . . . . . . 11,172 127,498 GlaxoSmithKline (Health Care) .. . . . 4,227 105,882 Man Group (Diversified Financials). . . . . . . . . . . . . 4,100 71,050 Royal Bank of Scotland Group (Banks). . . . . . . . . . . . . . . 3,901 94,824 Royal Bank of Scotland Group (Additional Value Shares) (Banks). . . . . . . . . . . . . . . 5,400 6,172 Tesco (Consumer Staples) . . . . . . . 20,535 74,336 Vodafone Group (Telecommunication Services) .. . . . . . . . . . . . . 33,900 88,588 ---------- 997,537 ---------- TOTAL INVESTMENTS - 98.1% (Cost $4,925,804) 4,702,735 OTHER ASSETS LESS LIABILITIES - 1.9% 90,353 ---------- $4,793,088 ========== NET ASSETS - 100.0% ------------------ * Non-income producing security. See Notes to Financial Statements.
- P-49 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO
SHARES VALUE ------ -------- COMMON STOCKS - 96.7% AUTOMOBILES AND COMPONENTS - 1.9% Harley-Davidson. . . . . . . . . 1,350 $ 73,319 -------- CAPITAL GOODS - 8.1% General Electric . . . . . . . . 1,750 70,140 Honeywell International. . . . . 3,000 101,460 Tyco International . . . . . . . 2,500 147,250 -------- 318,850 -------- CHEMICALS - 1.8% Dow Chemical . . . . . . . . . . 2,100 70,938 -------- COMMUNICATIONS EQUIPMENT - 10.5% CIENA* . . . . . . . . . . . . . 2,200 31,493 Cisco Systems* . . . . . . . . . 6,100 110,501 Juniper Networks*. . . . . . . . 1,000 18,960 Nokia (ADRs) (Finland) . . . . . 3,300 80,949 Nortel Networks* (Canada). . . . 4,800 36,000 QUALCOMM*. . . . . . . . . . . . 800 40,380 Research In Motion* (Canada) . . 2,200 52,195 RF Micro Devices*. . . . . . . . 2,200 42,284 -------- 412,762 -------- COMPUTERS AND PERIPHERALS - 1.9% International Business Machines. 600 72,576 -------- CONSUMER DURABLES AND APPAREL - 4.4% Mattel . . . . . . . . . . . . . 2,400 41,280 NIKE (Class B) . . . . . . . . . 1,500 84,360 Nintendo (ADRs) (Japan). . . . . 2,200 47,850 -------- 173,490 -------- CONSUMER STAPLES - 3.7% Coca-Cola. . . . . . . . . . . . 750 35,363 Philip Morris .. . . . . . . . . 2,400 110,040 -------- 145,403 -------- ELECTRONIC EQUIPMENT AND INSTRUMENTS - 2.4% JDS Uniphase*. . . . . . . . . . 5,200 45,110 Symbol Technologies. . . . . . . 3,100 49,228 -------- 94,338 -------- _____________________ * Non-income producing security. See Notes to Financial Statements.
SHARES VALUE -------- -------- FINANCIALS - 2.2% AFLAC. . . . . . . . . . . . . 1,500 $ 36,840 Citigroup. . . . . . . . . . . 1,000 50,480 -------- 87,320 -------- HEALTH CARE EQUIPMENT AND SERVICES - 7.2% Applera-Applied Biosystems Group. . . . . . . . . . . . 900 35,343 Laboratory Corp. of America Holdings* .. . . . . . . . . 500 40,425 Medtronic. . . . . . . . . . . 3,200 163,872 Quest Diagnostics* . . . . . . 600 43,026 -------- 282,666 -------- HOTELS, RESTAURANTS AND LEISURE - 2.7% Hilton Hotels .. . . . . . . . 5,800 63,336 Starwood Hotels & Resorts Worldwide. . . . . . . . . . 1,400 41,790 -------- 105,126 -------- MEDIA - 4.6% AOL Time Warner* . . . . . . . 2,500 80,250 Clear Channel Communications*. 1,200 61,092 Viacom (Class B)*. . . . . . . 900 39,735 -------- 181,077 -------- PHARMACEUTICALS AND BIOTECHNOLOGY - 18.6% Amgen* . . . . . . . . . . . . 800 45,148 Elan (ADRs)* (Ireland) . . . . 1,400 63,084 Genentech* . . . . . . . . . . 1,600 86,800 Johnson & Johnson. . . . . . . 1,500 88,650 King Pharmaceuticals*. . . . . 1,400 58,982 Lilly (Eli). . . . . . . . . . 1,400 109,956 MedImmune* . . . . . . . . . . 1,900 88,027 Pfizer . . . . . . . . . . . . 4,250 169,362 Pharmacia. . . . . . . . . . . 500 21,325 -------- 731,334 -------- RETAILING - 4.4% Home Depot (The) . . . . . . . 1,800 91,818 Wal-Mart Stores. . . . . . . . 1,400 80,570 -------- 172,388 -------- _____________________ * Non-income producing security. See Notes to Financial Statements.
- P-50 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ---------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 6.8% Intel . . . . . . . . . . . . 4,200 $ 132,069 Texas Instruments . . . . . . 4,800 134,400 ---------- 266,469 ---------- SOFTWARE AND SERVICES - 11.6% Computer Associates International . . . . . . . 2,200 75,878 Microsoft*. . . . . . . . . . 2,500 165,638 Openwave Systems* . . . . . . 3,866 37,867 SAP (Germany) . . . . . . . . 800 25,544 Siebel Systems* . . . . . . . 2,300 64,377 VeriSign* . . . . . . . . . . 700 26,646 VERITAS Software* . . . . . . 1,300 58,285 ---------- 454,235 ---------- SHARES VALUE ------ ---------- TELECOMMUNICATION SERVICES - 1.2% Sprint PCS Group* . . . . . . 2,000 $ 48,820 ---------- TRANSPORTATION - 1.1% Delta Air Lines . . . . . . . 1,500 43,890 ---------- UTILITIES - 1.6% AES . . . . . . . . . . . . . 3,900 63,765 ---------- TOTAL INVESTMENTS - 96.7% (Cost $4,022,286) . . . . . 3,798,766 OTHER ASSETS LESS LIABILITIES - 3.3% . . 131,205 ---------- NET ASSETS - 100.0% . . . . . $3,929,971 ==========
-------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO
SHARES VALUE ------ -------- COMMON STOCKS - 97.6% AEROSPACE - 6.8% Boeing. . . . . . . . . . . . 7,000 $271,460 Goodrich (B.F.) . . . . . . . 9,500 252,890 -------- 524,350 -------- AUTOMOBILES AND COMPONENTS - 2.8% Ford Motor. . . . . . . . . . 13,500 212,220 -------- BANKS - 10.2% Bank of New York. . . . . . . 6,500 265,200 FleetBoston Financial . . . . 7,040 256,960 Washington Mutual . . . . . . 8,000 261,600 -------- 783,760 -------- CHEMICALS - 6.1% Dow Chemical. . . . . . . . . 6,500 219,570 Praxair . . . . . . . . . . . 4,500 248,625 -------- 468,195 -------- COMPUTERS AND PERIPHERALS - 3.1% International Business Machines. . . . . . . . . . 2,000 241,920 -------- SHARES VALUE ------ -------- DIVERSIFIED FINANCIALS - 9.4% Citigroup . . . . . . . . . . 5,000 $252,400 Fannie Mae. . . . . . . . . . 3,200 254,400 JPMorgan Chase Bank . . . . . 6,000 218,100 -------- 724,900 -------- ENERGY - 6.2% ChevronTexaco . . . . . . . . 2,310 206,999 Transocean Sedco Forex. . . . 8,000 270,560 -------- 477,559 -------- HEALTH CARE EQUIPMENT - 7.5% Baxter International. . . . . 5,000 268,150 Medtronic . . . . . . . . . . 6,000 307,260 -------- 575,410 -------- HOUSEHOLD PRODUCTS - 2.7% Kimberly-Clark. . . . . . . . 3,500 209,300 -------- INDUSTRIAL CONGLOMERATES - 2.9% United Technologies . . . . . 3,500 226,205 -------- INSURANCE - 8.9% Allstate. . . . . . . . . . . 7,000 235,900 St. Paul Companies. . . . . . 5,500 241,835 UNUMProvident . . . . . . . . 7,800 206,778 -------- 684,513 -------- ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-51 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (continued) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued)
SHARES VALUE ------ ---------- PAPER AND FOREST PRODUCTS - 5.7% Georgia-Pacific . . . . . 8,000 $ 220,880 International Paper . . . 5,500 221,925 ---------- 442,805 ---------- PHARMACEUTICALS - 6.4% American Home Products. . 3,900 239,304 Bristol-Myers Squibb. . . 5,000 255,000 ---------- 494,304 ---------- RETAILING - 6.8% Costco Wholesale* . . . . 6,000 266,340 RadioShack .. . . . . . . 8,500 255,850 ---------- 522,190 ---------- TELECOMMUNICATION SERVICES - 2.6% Sprint FON Group. . . . . 10,000 200,800 ---------- SHARES VALUE ------ ---------- TOBACCO - 3.3% Philip Morris . . . . . . 5,500 $ 252,175 ---------- UTILITIES - 6.2% AES . . . . . . . . . . . 3,400 55,590 Dynegy. . . . . . . . . . 6,000 153,000 El Paso . . . . . . . . . 6,100 272,121 ---------- 480,711 ---------- TOTAL INVESTMENTS - 97.6% (Cost $7,011,529). . . . 7,521,317 OTHER ASSETS LESS LIABILITIES - 2.4% 186,644 ---------- NET ASSETS - 100.0%. . . . $7,707,961 ==========
-------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO
SHARES VALUE ------- ----------- COMMON STOCKS - 111.2% AEROSPACE AND DEFENSE - 3.2% Cubic . . . . . . . . . . . . . . 64,650 $ 3,320,424 ----------- CHEMICALS - 9.8% Crompton. . . . . . . . . . . . . 233,500 2,101,500 Minerals Technologies . . . . . . 50,000 2,332,000 NOVA Chemicals (Canada) . . . . . 170,000 3,275,900 Olin. . . . . . . . . . . . . . . 164,100 2,648,574 ----------- 10,357,974 ----------- COMMERCIAL SERVICES AND SUPPLIES - 6.2% Cadmus Communications . . . . . . 129,650 1,387,255 Korn/Ferry International. . . . . 260,000 2,769,000 Pittston Brink's Group. . . . . . 106,272 2,348,611 ----------- 6,504,866 ----------- CONSUMER STAPLES - 5.4% Constellation Brands (Class B)*. 65,000 2,785,250 Fresh Del Monte Produce*. . . . . 195,000 2,934,750 ----------- 5,720,000 ----------- SHARES VALUE ------- ----------- CONTAINERS AND PACKAGING - 5.1% BWAY* . . . . . . . . . . . . . . 245,000 $ 2,695,000 Smurfit-Stone Container*. . . . . 170,000 2,714,050 ----------- 5,409,050 ----------- ENERGY - 4.9% Smith International*. . . . . . . 60,000 3,217,200 Universal Compression Holdings* . . . . . . . . . . . 64,100 1,890,309 ----------- 5,107,509 ----------- FINANCIALS - 17.8% Allmerica Financial . . . . . . . 70,000 3,118,500 Berkley (W.R.). . . . . . . . . . 40,000 2,148,000 Commercial Federal. . . . . . . . 110,000 2,585,000 Mutual Risk Management. . . . . . 484,600 3,537,580 PartnerRe (Bermuda) . . . . . . . 50,000 2,700,000 PMI Group (The) . . . . . . . . . 47,000 3,149,470 RenaissanceRe Holdings (Bermuda) . . . . . . . . . . . 16,000 1,526,400 ----------- 18,764,950 ----------- ---------------- * Non-income producing security. See Notes to Financial Statements.
- P-52 -
SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- December 31, 2001 -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (continued) SHARES VALUE ------- ------------- HEALTH CARE EQUIPMENT AND SUPPLIES - 3.4% Edwards Lifesciences*. . . . . . . 130,000 $ 3,591,900 ------------- HEALTH CARE PROVIDERS AND SERVICES - 9.9% Apria Healthcare Group*. . . . . . 110,000 2,748,900 Omnicare . . . . . . . . . . . . . 119,000 2,960,720 Oxford Health Plans* . . . . . . . 90,000 2,712,600 Pharmacopeia*. . . . . . . . . . . 141,500 1,967,558 ------------- 10,389,778 ------------- HOUSEHOLD DURABLES - 5.7% Furniture Brands International* . 100,000 3,202,000 Harman International Industries . . . . . . . . . . . 63,000 2,841,300 ------------- 6,043,300 ------------- MACHINERY - 7.6% Mueller Industries*. . . . . . . . 79,000 2,626,750 Navistar International . . . . . . 60,000 2,370,000 Stewart & Stevenson Services . 160,000 3,008,800 ------------- 8,005,550 ------------- OIL AND GAS - 2.1% Valero Energy. . . . . . . . . . . 56,500 2,153,780 ------------- PAPER AND FOREST PRODUCTS - 2.4% Westvaco . . . . . . . . . . . . . 90,000 2,560,500 ------------- REAL ESTATE - 1.5% Innkeepers USA Trust . . . . . . . 154,900 1,518,020 ------------- SHARES VALUE ------- ------------- RETAILING - 12.2% Abercrombie & Fitch (Class A)* 130,000 $ 3,448,900 Fred's . . . . . . . . . . . . . . 68,125 2,790,059 Urban Outfitters*. . . . . . . . . 166,000 3,993,130 Wet Seal (The) (Class A)*. . . . . 110,000 2,611,400 ------------- 12,843,489 ------------- SOFTWARE AND SERVICES - 2.6% StorageNetworks* . . . . . . . . . 446,700 2,751,672 ------------- TECHNOLOGY HARDWARE AND EQUIPMENT - 5.6% Agere Systems (Class A)* . . . . . 600,000 3,414,000 Trimble Navigation*. . . . . . . . 151,000 2,446,955 ------------- 5,860,955 ------------- TRANSPORTATION - 3.2% Continental Airlines*. . . . . . . 130,000 3,407,300 ------------- UTILITIES - 2.6% Sierra Pacific Resources . . . . . 180,400 2,715,020 ------------- TOTAL COMMON STOCKS (Cost $99,437,890) . . . . . . . . 117,026,037 REPURCHASE AGREEMENT - 3.3% (Cost $3,500,000). . . . . . . . 3,500,000 ------------- TOTAL INVESTMENTS - 114.5% (Cost $102,937,890). . . . . . . 120,526,037 OTHER ASSETS LESS LIABILITIES - (14.5)% (15,257,626) ------------- NET ASSETS - 100.0%. . . . . . . . $105,268,411 ------------- * Non-income producing security. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. --------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES --------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN CASH COMMON COMMUNICATIONS SELIGMAN BOND CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ------------ ----------- ------------ ----------------- ------------ ASSETS: Investments, at value (see portfolios of investments): Long-term holdings . . . . . . . . . . . . $6,259,442 $27,782,276 $ 0,000,00 $23,380,179 $ 115,630,168 $12,833,252 Short-term holdings. . . . . . . . . . . . 775,000 - 12,261,768 - 14,500,000 - ----------- ------------ ----------- ------------ ----------------- ------------ Total Investments. . . . . . . . . . . . . 7,034,442 27,782,276 12,261,768 23,380,179 130,130,168 12,833,252 Cash*. . . . . . . . . . . . . . . . . . . 6,370 160,623 7,898 489,770 59,102 438,739 Dividends and Interest receivable. . . . . 82,597 7,364 261 25,107 5,296 2,756 Receivable for Capital Stock sold. . . . . 10,021 28,038 - 7,842 156,468 7,277 Receivable for securities sold . . . . . . - 477,920 - - - - Other. . . . . . . . . . . . . . . . . . . 88 487 7,252 405 1,915 213 ----------- ------------ ----------- ------------ ----------------- ------------ TOTAL ASSETS . . . . . . . . . . . . . . . 7,133,518 28,456,708 12,277,179 23,903,303 130,352,949 13,282,237 ----------- ------------ ----------- ------------ ----------------- ------------ LIABILITIES: Payable for securities purchased . . . . . - 262,609 - 99,320 80,339 60,445 Payable for Capital Stock redeemed . . . . 11,728 163 36,745 9,009 111,278 7,951 Payable to the Manager . . . . . . . . . . 2,399 9,529 4,338 8,121 81,982 8,271 Accrued expenses and other . . . . . . . . 16,811 42,614 24,934 30,987 118,953 31,750 ----------- ------------ ----------- ------------ ----------------- ------------ TOTAL LIABILITIES. . . . . . . . . . . . . 30,938 314,915 66,017 147,437 392,552 108,417 ----------- ------------ ----------- ------------ ----------------- ------------ NET ASSETS . . . . . . . . . . . . . . . . $7,102,580 $28,141,793 $12,211,162 $23,755,866 $ 129,960,397 $13,173,820 =========== ============ =========== ============ ================= ============ COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par . . . . . . . $ 693 $ 2,276 $ 12,210 $ 2,192 $ 10,327 $ 1,004 Additional paid-in-capital . . . . . . . . 6,974,165 35,224,443 12,196,686 23,548,782 153,420,695 12,785,906 Undistributed/accumulated net investment income (loss) . . . . . . . . 356,893 (5,509) - 157,113 (4,268) (3,673) Undistributed/accumulated net realized gain (loss) . . . . . . . . . . (254,333) (9,529,320) 2,266 (1,837,065) (26,201,031) (508,490) Net unrealized appreciation (depreciation) of investments. . . . . . 25,162 2,449,903 - 1,884,844 2,734,674 899,073 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts . . . . . . . - - - - - - ----------- ------------ ----------- ------------ ----------------- ------------ NET ASSETS . . . . . . . . . . . . . . . . $7,102,580 $28,141,793 $12,211,162 $23,755,866 $ 129,960,397 $13,173,820 =========== ============ =========== ============ ================= ============ Class 1. . . . . . . . . . . . . . . . . $7,102,580 $24,349,400 $12,211,162 $23,755,866 $ 113,423,536 $13,173,820 Class 2 $ 3,792,393 $ 16,536,861 SHARES OF CAPITAL STOCK OUTSTANDING Class 1. . . . . . . . . . . . . . . . . 693,034 1,968,889 12,209,884 2,192,328 9,008,198 1,003,721 Class 2 307,369 1,319,373 NET ASSET VALUE PER SHARE Class 1. . . . . . . . . . . . . . . . . $ 10.25 $ 12.37 $ 1.00 $ 10.84 $ 12.59 $ 13.12 =========== ============ =========== ============ ================= ============ Class 2 $ 12.34 $ 12.53 ============ =================
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SELIGMAN PORTFOLIOS, INC. ------------------------------------------------------------------------------------------------------------------------------- December 31, 2001 ------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN GLOBAL SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN GLOBAL SMALLER GLOBAL HIGHYIELD SELIGMAN INTERNATIONAL LARGECAP LARGECAP SMALLCAP GROWTH COMPANIES TECHNOLOGY BOND INCOME GROWTH GROWTH VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 4,501,948 $ 9,661,270 $18,545,167 $ 11,658,908 $ 4,337,339 $ 4,702,735 $ 3,798,766 $7,521,317 $ 117,026,037 - - - 710,000 - - - 3,500,000 ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 4,501,948 9,661,270 18,545,167 12,368,908 4,337,339 4,702,735 3,798,766 7,521,317 120,526,037 288,098 421,876 2,880,749 2,067 88,731 100,098 253,503 194,963 65,213 6,842 9,356 3,827 262,090 30,179 11,775 3,526 18,075 37,382 14,866 58,038 466,580 30,063 - 21,041 25,157 24,123 634,114 57,684 8,273 49,037 - 33,224 - 85,884 - 61,240 90 173 343 186 62 88 67 88 449 ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 4,869,528 10,158,986 21,945,703 12,663,314 4,489,535 4,835,737 4,166,903 7,758,566 121,324,435 ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 174,903 41,934 76,945 99,870 10,060 - 199,720 9,995 2,920 12,958 57,385 58,452 28,986 533 18,448 23,553 24,396 15,897,699 2,983 1,335 10,714 5,125 1,510 3,309 2,331 5,155 92,372 19,716 40,896 47,505 19,739 18,645 20,892 11,328 11,059 63,033 ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 210,560 141,550 193,616 153,720 30,748 42,649 236,932 50,605 16,056,024 ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 4,658,968 $ 10,017,436 $ 21,752,087 $ 12,509,594 $ 4,458,787 $ 4,793,088 $ 3,929,971 $ 7,707,961 $ 105,268,411 ============ ============ ============ ============= =========== =============== ============ =========== ============= 1,159 $ 969 $ 1,679 $ 2,049 $ 493 $ 596 $ 526 $ 737 $8,073 6,000,119 10,831,961 32,043,090 23,733,031 4,645,646 7,513,354 5,947,745 7,344,375 86,072,757 (5,539) (5,535) (3,107) 1,404,678 154,440 (8,001) (1,311) 69,313 (1,911) (1,354,506) (744,748) (9,552,536) (11,472,599) (415,136) (2,489,214) (1,793,469) (216,252) 1,601,345** 57,395 188,896 (603,080) (1,157,565) 73,344 (153,732) (223,520) 509,788 17,588,147 (39,660) (254,107) (133,959) - - (69,915) - - - ------------ ------------ ------------ ------------- ----------- --------------- ------------ ----------- ------------- 4,658,968 $ 10,017,436 $ 21,752,087 $ 12,509,594 $ 4,458,787 $ 4,793,088 $ 3,929,971 $ 7,707,961 $ 105,268,411 ============ ============ ============ ============= =========== =============== ============ =========== ============= 4,658,968 $ 10,017,436 $ 18,532,984 $ 12,509,594 $ 4,458,787 $ 4,793,088 $ 3,929,971 $ 7,707,961 $ 100,089,890 $ 3,219,103 $ 5,178,521 1,159,249 969,294 1,430,299 2,049,250 493,067 595,656 525,970 736,944 7,676,042 248,950 397,241 4.02 $ 10.33 $ 12.96 $ 6.10 $ 9.04 $ 8.05 $ 7.47 $ 10.46 $ 13.04 ============ ============ ============ ============= =========== =============== ============ =========== ============= $ 12.93 $ 13.04 ============ ============= 7,757 $ 106,185 $ 558,708 $ - $ - $ 5,796 $ - $ - $ -
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SELIGMAN PORTFOLIOS, INC. --------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS --------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN SELIGMAN COMMUNICATIONS SELIGMAN SELIGMAN CASH COMMON AND SELIGMAN BOND CAPITAL MANAGEMENT STOCK INFORMATION FRONTIER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ------------ ------------ ------------ ---------------- ------------ INVESTMENT INCOME: Interest . . . . . . . . . . . . . . . . . $ 404,769 $ 25,641 $ 573,134 $ 28,180 $ 555,454 $ 33,147 Dividends* . . . . . . . . . . . . . . . . - 64,266 - 294,153 68,187 30,120 Other. . . . . . . . . . . . . . . . . . . 1,280 4,098 - 1,994 33,345 25,017 ----------- ------------ ------------ ------------ ---------------- ------------ TOTAL INVESTMENT INCOME. . . . . . . . . . 406,049 94,005 573,134 324,327 656,986 88,284 ----------- ------------ ------------ ------------ ---------------- ------------ EXPENSES: Management fee . . . . . . . . . . . . . . 27,186 122,272 58,419 110,069 1,036,033 105,612 Auditing fee . . . . . . . . . . . . . . . 8,102 19,418 12,683 18,122 69,028 11,920 Custody and related services . . . . . . . 5,732 16,190 15,410 11,875 44,145 37,826 Directors' fees and expenses . . . . . . . 4,387 5,373 5,288 5,245 9,567 4,695 Registration . . . . . . . . . . . . . . . 1,458 8,654 3,612 3,283 20,680 4,967 Shareholder reports and communications . . 1,359 8,657 2,067 3,668 21,275 4,964 Legal fee. . . . . . . . . . . . . . . . . 1,300 3,450 1,259 3,100 12,276 1,500 Shareholder account services . . . . . . . - 26,500 - - 49,195 - Distribution and service fees - Class 2. . - 6,812 - - 40,404 - Miscellaneous. . . . . . . . . . . . . . . 1,767 3,265 7,223 5,805 16,032 2,919 ----------- ------------ ------------ ------------ ---------------- ------------ TOTAL EXPENSES BEFORE WAIVER/ REIMBURSEMENT. . . . . . . . . . . . . . 51,291 220,591 105,961 161,167 1,318,635 174,403 Waiver/reimbursement of expenses . . . . . . . . . . . . . . . . (8,779) (26,421) (95,036) - - (31,880) ----------- ------------ ------------ ------------ ---------------- ------------ TOTAL EXPENSES AFTER WAIVER/ REIMBURSEMENT. . . . . . . . . . . . . . 42,512 194,170 10,925 161,167 1,318,635 142,523 ----------- ------------ ------------ ------------ ---------------- ------------ NET INVESTMENT INCOME (LOSS) . . . . . . . 363,537 (100,165) 562,209 163,160 (661,649) (54,239) ----------- ------------ ------------ ------------ ---------------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments. . 88,103 (9,249,754) - (1,188,028) (18,830,147) (437,422) Net realized loss from foreign currency transactions. . . . . . . . . . - -- - - - Net change in unrealized appreciation/depreciation of investments . . . . . . . . . . . . . (110,694) 2,958,885 - (2,843,798) 23,536,146 (892,119) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts . . . . . - -- - - - - ----------- ------------ ------------ ------------ ---------------- ------------ NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS. . . . . . (22,591) (6,290,869) - (4,031,826) 4,705,999 (1,329,541) ----------- ------------ ------------ ------------ ---------------- ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS. . . . . . . . . . . . . $ 340,946 $(6,391,034) $ 562,209 $(3,868,666) $ 4,044,350 $(1,383,780) =========== ============ ============ ============ ================ ============ ------------------- * Net of foreign tax withheld as follows: $ - $ - $ - $ 1,325 $ 1,895 $ - See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ------------------------------------------------------------------------------------------------------------------------------- For the Year Ended December 31, 2001 ------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN SELIGMAN GLOBAL SMALLER GLOBAL HIGH-YIELD SELIGMAN INTERNATIONAL LARGE-CAP LARGE-CAP SMALL-CAP GLOBAL GROWTH COMPANIES TECHNOLOGY BOND INCOME GROWTH GROWTH VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 157 $ - $ - $ 1,329,784 $ 155,851 $ 127 $ 2,930 $ 2,594 $ 86,874 71,886 79,987 38,404 165,766 31,905 86,834 27,854 122,861 380,823 20,460 25,723 82,900 7,570 3,528 15,109 - - - --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 92,503 105,710 121,304 1,503,120 191,284 102,070 30,784 125,455 467,697 --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 60,411 115,949 229,724 67,105 19,211 58,733 30,538 51,296 519,314 8,269 10,531 16,048 11,587 7,682 8,155 7,542 8,084 27,175 24,945 83,440 62,530 12,624 10,279 27,540 1,177 822 15,582 4,387 4,603 5,082 4,671 4,320 4,372 4,307 4,359 5,213 2,325 2,800 10,841 2,295 1,345 2,328 1,846 1,896 24,468 1,428 1,727 10,289 1,933 1,213 1,400 900 1,201 10,354 1,000 1,200 2,700 1,600 900 1,228 1,200 1,000 3,587 - - 29,732 - - - -- 25,068 - - 4,262 - - - -- 3,741 2,118 6,629 3,006 3,088 4,052 1,955 1,750 1,740 1,986 --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 104,883 226,879 374,214 104,903 49,002 105,711 49,260 70,398 636,488 (20,307) (64,573) (48,187) (10,334) (18,236) (23,484) (16,934) (17,199) (15,582) --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 84,576 162,306 326,027 94,569 30,766 82,227 32,326 53,199 620,906 --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 7,927 (56,596) (204,723) 1,408,551 160,518 19,843 (1,542) 72,256 (153,209) --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ (1,230,578) (243,212) (8,298,427) (6,794,756) (151,802) (1,170,348) (1,581,484) (211,612) 1,998,203 (63,730) (476,193) (219,215) - - (63,653) - - - (102,735) (1,509,428) 2,684,661 3,266,289 (111,133) (237,497) 570,437 (377,822) 15,045,255 (165,513) 140,094 (628,320) - - (254,737) - - - --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ (1,562,556) (2,088,739) (6,461,301) (3,528,467) (262,935) (1,726,235) (1,011,047) (589,434) 17,043,458 --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ (1,554,629) $ (2,145,335) $(6,666,024) $(2,119,916) $ (102,417) $ (1,706,392) $(1,012,589) $ (517,178) $16,890,249 --------------- ---------------- ------------ ------------ ----------- ------------- ------------ ----------- ------------ 7,848 $ 8,763 $ 10,475 $ - $ 232 $ 11,401 $ 98 $ - $ 2,167 =============== ================ ============ ============ =========== ============= ============ =========== ============
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SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN BOND PORTFOLIO CAPITAL PORTFOLIO* -------------------------- ---------------------------- YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, -------------------------- ---------------------------- 2001 2000 2001 2000 ------------ ------------ ------------- ------------- OPERATIONS: Net Investment income (loss) . . . . . . . . . $ 363,537 $ 350,076 $ (100,165) $ 28,295 Net realized gain (loss) on investments. . . . 88,103 (115,348) (9,249,754) 11,018,398 Net realized gain (loss) from foreign currency transactions. . . . . . . . -- - - Net change in unrealized appreciation/ depreciation of investments. . . . . . . . . (110,694) 330,845 2,958,885 (9,230,182) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. . . . . . . . . . . . . . . . . . -- - - ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS. . . . . . . . . . . . . . . 340,946 565,573 (6,391,034) 1,816,511 ------------ ------------ ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income - Class 1+ . . . . . . . (349,249) - (28,303) - Net realized short-term gain on investments:+ Class 1. . . . . . . . . . . . . . . . . . . - - (4,599,251) (1,883,592) Class 2. . . . . . . . . . . . . . . . . . . - - (709,790) (67,345) Net realized long-term gain on investments: Class 1. . . . . . . . . . . . . . . . . . . - - (5,091,018) - Class 2. . . . . . . . . . . . . . . . . . . - - (785,683) - ------------ ------------ ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS . . . . . . . . . . . . . . (349,249) - (11,214,045) (1,950,937) ------------ ------------ ------------- ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1. . . . . . . . . . . . . . . . . . . 5,886,747 3,192,081 3,441,538 20,226,591 Class 2. . . . . . . . . . . . . . . . . . . - - 2,930,647 1,892,120 Shares issued in payment of: Dividends - Class 1. . . . . . . . . . . . . 349,249 - 28,303 - Gain distributions: Class 1. . . . . . . . . . . . . . . . . . . - - 9,690,269 1,883,592 Class 2. . . . . . . . . . . . . . . . . . . - - 1,495,473 67,345 ------------ ------------ ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . 6,235,996 3,192,081 17,586,230 24,069,648 ------------ ------------ ------------- ------------- Cost of shares redeemed: Class 1. . . . . . . . . . . . . . . . . . . (5,607,732) (2,222,183) (10,152,891) (12,738,591) Class 2. . . . . . . . . . . . . . . . . . . - - (393,286) (75,605) ------------ ------------ ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . (5,607,732) (2,222,183) (10,546,177) (12,814,196) ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS . . . . . . . . . 628,264 969,898 7,040,053 11,255,452 INCREASE (DECREASE) IN NET ASSETS. . . . . . . 619,961 1,535,471 (10,565,026) 11,121,026 NET ASSETS: Beginning of year. . . . . . . . . . . . . . . 6,482,619 4,947,148 38,706,819 27,585,793 ------------ ------------ ------------- ------------- END OF YEAR. . . . . . . . . . . . . . . . . . $ 7,102,580 $ 6,482,619 $ 28,141,793 $ 38,706,819 ============ ============ ============= ============= SELIGMAN CASH MANAGEMENT PORTFOLIO YEAR ENDED DECEMBER 31, --------------------------- 2001 2000 ------------- ------------- OPERATIONS: Net Investment income (loss) . . . . . . . . . $ 562,209 $ 799,641 Net realized gain (loss) on investments. . . . - (107) Net realized gain (loss) from foreign currency transactions. . . . . . . . - - Net change in unrealized appreciation/ depreciation of investments. . . . . . . . . - - Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. . . . . . . . . . . . . . . . . . - - ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 562,209 799,534 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income - Class 1+ . . . . . . . (562,209) (799,641) Net realized short-term gain on investments:+ Class 1. . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . - - Net realized long-term gain on investments: Class 1. . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . - - ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS . (562,209) (799,641) ------------- ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1. . . . . . . . . . . . . . . . . . . 112,248,040 67,583,046 Class 2. . . . . . . . . . . . . . . . . . . - - Shares issued in payment of: Dividends - Class 1. . . . . . . . . . . . . 562,209 799,641 Gain distributions: Class 1. . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . - - ------------- ------------- Total. . . . . . . . . . . . . . . . . . . . . 112,810,249 68,382,687 ------------- ------------- Cost of shares redeemed: Class 1. . . . . . . . . . . . . . . . . . . (112,917,253) (73,675,795) Class 2. . . . . . . . . . . . . . . . . . . - - ------------- ------------- Total. . . . . . . . . . . . . . . . . . . . . (112,917,253) (73,675,795) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS . . . . . . . . . (107,004) (5,293,108) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS. . . . . . . (107,004) (5,293,215) NET ASSETS: Beginning of year . . . . . . . . . . . . . . 12,318,166 17,611,381 ------------- ------------- END OF YEAR . . . . . . . . . . . . . . . . . $ 12,211,162 $ 12,318,166 ============= ============= ---------------- * The Portfolio began offering Class 2 shares on August 30, 2000. ** The Portfolio began offering Class 2 shares on May 1, 2000. + For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements.
-- P-58 --
SELIGMAN PORTFOLIOS, INC. --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN SELIGMAN COMMON STOCK COMMUNICATIONS AND SELIGMAN GLOBAL GROWTH PORTFOLIO INFORMATION PORTFOLIO** FRONTIER PORTFOLIO PORTFOLIO YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, ---------------------------- ---------------------------- ---------------------------- --------------------------- 2001 2000 2001 2000 2001 2000 2001 2000 ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- 163,160 $ 279,228 $ (661,649) $ (987,286) $ (54,239) $ (164,944) $ 7,927 $ (63,307) (1,188,028) 2,170,179 (18,830,147) 17,691,316 (437,422) 1,269,407 (1,230,578) 3,546,035 - - - - - - (63,730) (475,498) (2,843,798) (6,574,404) 23,536,146 (93,120,418) (892,119) (3,607,941) (102,735) (4,473,781) - - - - - - (165,513) 229,684 ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (3,868,666) (4,124,997) 4,044,350 (76,416,388) (1,383,780) (2,503,478) (1,554,629) (1,236,867) ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (278,079) (11,162) - - - - - - (343,284) (116,081) - (10,403,730) - - (421,269) (62,880) - - - (602,781) - - - - (2,472,028) (1,299,209) (21,538,858) (7,089,001) (910,887) - (2,661,546) (67,801) - - (3,112,342) (410,729) - - - - ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (3,093,391) (1,426,452) (24,651,200) (18,506,241) (910,887) - (3,082,815) (130,681) ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- 26,046,078 13,873,150 24,384,089 70,820,745 22,190,724 53,005,443 4,467,914 9,426,103 - - 23,787,944 14,089,125 - - - - 278,079 11,162 - - - - - - 2,815,312 1,415,290 21,538,858 17,492,731 910,887 - 3,082,815 130,681 - - 3,112,342 1,013,510 - - - - ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- 29,139,469 15,299,602 72,823,233 103,416,111 23,101,611 53,005,443 7,550,729 9,556,784 ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (31,159,369) (24,313,051) (44,047,037) (83,705,844) (24,644,354) (59,196,569) (6,602,136) (11,730,170) - - (13,932,359) (3,025,477) - - - - ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (31,159,369) (24,313,051) (57,979,396) (86,731,321) (24,644,354) (59,196,569) (6,602,136) (11,730,170) ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (2,019,900) (9,013,449) 14,843,837 16,684,790 (1,542,743) (6,191,126) 948,593 (2,173,386) ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- (8,981,957) (14,564,898) (5,763,013) (78,237,839) (3,837,410) (8,694,604) (3,688,851) (3,540,934) 32,737,823 47,302,721 135,723,410 213,961,249 17,011,230 25,705,834 8,347,819 11,888,753 ------------- ------------- ------------- ------------- ------------- ------------- ------------ ------------- $ 23,755,866 $ 32,737,823 $129,960,397 $135,723,410 $ 13,173,820 $ 17,011,230 $ 4,658,968 $ 8,347,819 ============= ============= ============= ============= ============= ============= ============ =============
-- P-59 --
SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (continued) -------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN GLOBAL SMALLER GLOBAL TECHNOLOGY COMPANIES PORTFOLIO PORTFOLIO** -------------------------- ---------------------------- YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, -------------------------- ---------------------------- 2001 2000 2001 2000 ------------ ------------ ------------- ------------- OPERATIONS: Net Investment income (loss) . . . . . . . . . $ (56,596) $ (86,296) $ (204,723) $ (150,383) Net realized gain (loss) on investments. . . . (243,212) 1,635,867 (8,298,427) 3,188,559 Net realized gain (loss) from foreign currency transactions. . . . . . . . (476,193) (161,603) (219,215) (443,395) Net change in unrealized appreciation/ depreciation of investments. . . . . . . . . (1,509,428) (3,534,739) 2,684,661 (12,355,108) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. . . . . . . . . . . . . . . . . . 140,094 (438,248) (628,320) 441,841 ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS. . . . . . . . . . . . . . . (2,145,335) (2,585,019) (6,666,024) (9,318,486) ------------ ------------ ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income - Class 1+ . . . . . . . - - - - Net realized short-term gain on investments:+ Class 1. . . . . . . . . . . . . . . . . . . . - - (33,491) (755,897) Class 2. . . . . . . . . . . . . . . . . . . . - - (5,773) (98,686) Net realized long-term gain on investments: Class 1. . . . . . . . . . . . . . . . . . . . (1,508,230) (499,106) (3,116,989) (199,173) Class 2. . . . . . . . . . . . . . . . . . . . - - (537,287) (26,003) ------------ ------------ ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS . . . . . . . . . . . . . (1,508,230) (499,106) (3,693,540) (1,079,759) ------------ ------------ ------------- ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1. . . . . . . . . . . . . . . . . . . 5,268,951 3,552,677 8,770,914 28,608,193 Class 2. . . . . . . . . . . . . . . . . . . - - 2,622,848 4,526,330 Shares issued in payment of: Dividends - Class 1. . . . . . . . . . . . . - - - - Gain distributions: Class 1. . . . . . . . . . . . . . . . . . . 1,508,230 499,106 3,150,480 955,070 Class 2. . . . . . . . . . . . . . . . . . . - - 543,060 124,689 ------------ ------------ ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . 6,777,181 4,051,783 15,087,302 34,214,282 ------------ ------------ ------------- ------------- Cost of shares redeemed: Class 1. . . . . . . . . . . . . . . . . . . (7,415,944) (6,226,540) (9,763,132) (16,926,767) Class 2. . . . . . . . . . . . . . . . . . . - - (1,982,091) (207,045) ------------ ------------ ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . (7,415,944) (6,226,540) (11,745,223) (17,133,812) ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS . . . . . . . . . (638,763) (2,174,757) 3,342,079 17,080,470 ------------ ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS. . . . . . . (4,292,328) (5,258,882) (7,017,485) 6,682,225 NET ASSETS: Beginning of year. . . . . . . . . . . . . . . 14,309,764 19,568,646 28,769,572 22,087,347 ------------ ------------ ------------- ------------- END OF YEAR. . . . . . . . . . . . . . . . . . $10,017,436 $14,309,764 $ 21,752,087 $ 28,769,572 ============ ============ ============= ============= SELIGMAN HIGH-YIELD BOND PORTFOLIO ---------------------------- YEAR ENDED DECEMBER 31, ---------------------------- 2001 2000 ------------- ------------- OPERATIONS: Net Investment income (loss) . . . . . . . . . $ 1,408,551 $ 2,259,692 Net realized gain (loss) on investments. . . . (6,794,756) (2,523,874) Net realized gain (loss) from foreign currency transactions. . . . . . . . - - Net change in unrealized appreciation/ depreciation of investments. . . . . . . . . 3,266,289 (1,474,956) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. . . . . . . . . . . . . . . . . . - - ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS. . . . . . . . . . . . . . . (2,119,916) (1,739,138) ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income - Class 1+ . . . . . . . (2,259,945) (6,950) Net realized short-term gain on investments:+ Class 1. . . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . . - - Net realized long-term gain on investments: Class 1. . . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . . - - ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS . . . . . . . . . . . . . (2,259,945) (6,950) ------------- ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1. . . . . . . . . . . . . . . . . . . 11,738,568 4,487,803 Class 2. . . . . . . . . . . . . . . . . . . - - Shares issued in payment of: Dividends - Class 1. . . . . . . . . . . . . 2,259,945 6,950 Gain distributions: Class 1. . . . . . . . . . . . . . . . . . . - - Class 2. . . . . . . . . . . . . . . . . . . - - ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . 13,998,513 4,494,753 ------------- ------------- Cost of shares redeemed: Class 1. . . . . . . . . . . . . . . . . . . (12,189,154) (14,560,577) Class 2. . . . . . . . . . . . . . . . . . . - - ------------- ------------- Total .. . . . . . . . . . . . . . . . . . . . (12,189,154) (14,560,577) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS . . . . . . . . . 1,809,359 (10,065,824) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS. . . . . . . (2,570,502) (11,811,912) NET ASSETS: Beginning of year. . . . . . . . . . . . . . . 15,080,096 26,892,008 ------------- ------------- END OF YEAR. . . . . . . . . . . . . . . . . . $ 12,509,594 $ 15,080,096 ============= ============= ---------------- ** The Portfolio began offering Class 2 shares on May 1, 2000. *** The Portfolio began offering Class 2 shares on May 1, 2001. + For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements.
-- P-60 --
SELIGMAN PORTFOLIOS, INC. --------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- SELIGMAN SELIGMAN SELIGMAN SELIGMAN INTERNATIONAL GROWTH LARGE-CAP LARGE-CAP INCOME PORTFOLIO PORTFOLIO GROWTH PORTFOLIO VALUE PORTFOLIO -------------------------- --------------------------- -------------------------- -------------------------- YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, -------------------------- --------------------------- -------------------------- -------------------------- 2001 2000 2001 2000 2001 2000 2001 2000 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ $ 160,518 $ 215,478 $ 19,843 $ (49,966) $ (1,542) $ 5,200 $ 72,256 $ 79,519 (151,802) (262,142) (1,170,348) (402,760) (1,581,484) 188,316 (211,612) 57,632 - - (63,653) (876,521) - - - - (111,133) (98,792) (237,497) (2,548,051) 570,437 (1,413,665) (377,822) 1,097,636 - - (254,737) 302,991 - - - - ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (102,417) (145,456) (1,706,392) (3,574,307) (1,012,589) (1,220,149) (517,178) 1,234,787 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (214,337) (8,835) - (90,781) (6,132) - (80,066) (1,006) - - - (88,864) (194,797) - (24,020) - - - - - - - - - - (15,903) - (184,759) (201,400) - (15,285) (40,726) - - - - - - - - ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (214,337) (24,738) - (364,404) (402,329) - (119,371) (41,732) ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ 1,800,250 954,328 27,379,387 3,381,024 3,188,503 6,333,690 8,351,407 2,996,048 - - - - - - - - 214,337 8,835 - 90,781 6,132 - 80,066 1,006 - 15,903 - 273,623 396,197 - 39,305 40,726 - - - - - - - - ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ 2,014,587 979,066 27,379,387 3,745,428 3,590,832 6,333,690 8,470,778 3,037,780 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (2,878,577) (3,763,855) (28,029,388) (2,905,725) (3,501,157) (3,526,701) (6,182,781) (3,932,202) - - - - - - - - ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (2,878,577) (3,763,855) (28,029,388) (2,905,725) (3,501,157) (3,526,701) (6,182,781) (3,932,202) ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (863,990) (2,784,789) (650,001) 839,703 89,675 2,806,989 2,287,997 (894,422) ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ (1,180,744) (2,954,983) (2,356,393) (3,099,008) (1,325,243) 1,586,840 1,651,448 298,633 5,639,531 8,594,514 7,149,481 10,248,489 5,255,214 3,668,374 6,056,513 5,757,880 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ 4,458,787 $ 5,639,531 $ 4,793,088 $ 7,149,481 $ 3,929,971 $ 5,255,214 $ 7,707,961 $ 6,056,513 ============ ============ ============= ============ ============ ============ ============ ============ SELIGMAN SMALL-CAP VALUE PORTFOLIO*** ---------------------------- YEAR ENDED DECEMBER 31, ---------------------------- 2001 2000 ------------- ------------- (153,209) $ (16,385) 1,998,203 55,566 - - 15,045,255 2,638,611 - - ------------- ------------- 16,890,249 2,677,792 ------------- ------------- - - (230,278) (216,863) (10,167) - - - - - ------------- ------------- (240,445) (216,863) ------------- ------------- 88,823,639 12,973,661 7,248,910 - - - 230,278 216,863 10,167 - ------------- ------------- 96,312,994 13,190,524 ------------- ------------- (3,560,102) (21,634,280) (2,554,826) - ------------- ------------- (24,189,106) (3,560,102) ------------- ------------- 72,123,888 9,630,422 ------------- ------------- 88,773,692 12,091,351 16,494,719 4,403,368 ------------- ------------- 105,268,411 $ 16,494,719 ============= =============
-- P-61 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 1. ORGANIZATION Seligman Portfolios, Inc. (the Fund) is an open-end diversified management investment company consisting of 15 separate portfolios (the Portfolios): Seligman Bond Portfolio (Bond Portfolio), Seligman Capital Portfolio (Capital Portfolio), Seligman Cash Management Portfolio (Cash Management Portfolio), Seligman Common Stock Portfolio (Common Stock Portfolio), Seligman Communications and Information Portfolio (Communications and Information Portfolio), Seligman Frontier Portfolio (Frontier Portfolio), Seligman Global Growth Portfolio (Global Growth Portfolio), Seligman Global Smaller Companies Portfolio (Global Smaller Companies Portfolio), Seligman Global Technology Portfolio (Global Technology Portfolio), Seligman High-Yield Bond Portfolio (High-Yield Bond Portfolio), Seligman Income Portfolio (Income Portfolio), Seligman International Growth Portfolio (International Growth Portfolio), Seligman Large-Cap Growth Portfolio (Large-Cap Growth Portfolio), Seligman Large-Cap Value Portfolio (Large-Cap Value Portfolio), and Seligman Small-Cap Value Portfolio (Small-Cap Value Portfolio), each designed to meet different investment goals. Shares of the Fund are provided as an investment medium for variable annuity and life insurance separate accounts offered by various insurance companies. 2. MULTIPLE CLASSES OF SHARES Effective May 1, 2000, the Fund began offering a second class of shares, Class 2 shares of each Portfolio, in addition to the class of shares that has been offered since inception. All shares existing prior to May 1, 2000, have been classified as Class 1 shares. Class 2 shares pay an annual distribution and service fee (12b-1 fee) of up to 0.25% of average daily net assets. Class 1 shares do not pay 12b-1 fees. The two classes of shares represent interests in the same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate class-specific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required. 3. SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from these estimates. The following summarizes the significant accounting policies of the Fund: a. SECURITY VALUATION Investments in US Government and Government Agency securities, bonds, asset-backed securities, convertible securities, and stocks are valued at the most current market values or, in their absence, at fair market values determined in accordance with procedures approved by the Board of Directors. Securities traded on an exchange are valued at the last sales price or, in its absence and in the case of over-the-counter securities, at the mean of closing bid and asked prices. Short-term holdings maturing in 60 days or less are valued at amortized cost. Investments held by Cash Management Portfolio are generally valued using the amortized cost method which approximates fair value. Investments of certain other funds in the Seligman Group of Investment Companies purchased to offset the Cash Management Portfolios liability for deferred directors fees are valued at current net asset values. b. FOREIGN SECURITIES The Portfolios may invest up to 10% of their total assets in foreign securities (except Global Growth Portfolio, Global Smaller Companies Portfolio, Global Technology Portfolio, and International Growth Portfolio, (together, the Seligman International Portfolios), which may invest up to 100% of their total assets in foreign securities). Investments in foreign securities will usually be denominated in foreign currencies, and the Portfolios may temporarily hold funds in foreign currencies. The Portfolios may also invest in US dollar-denominated American Depositary Receipts (ADRs), American Depositary Shares (ADSs), European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs), and Global Depositary Shares (GDSs). ADRs and ADSs are issued by domestic banks or trust companies and evidence ownership of securities issued by foreign corporations. ADRs and ADSs are traded on United States exchanges or over-the-counter and are not included in the 10% limitation. EDRs, GDRs, and GDSs are receipts similar to ADRs and ADSs and are typically issued by foreign banks or trust companies and traded in Europe. The books and records of the Portfolios are maintained in US dollars. Foreign currency amounts are translated into US dollars on the following basis: (i) market value of investment securities, other assets, and liabilities, at the daily rate of exchange as reported by a pricing service; (ii) purchases and sales of investment securities, income, and expenses, at the rate of exchange prevailing on the respective dates of such transactions. The net asset values per share of Portfolios which invest in securities denominated in foreign currencies will be affected by changes in currency exchange rates. Changes in foreign currency exchange rates may also affect the value of dividends and interest earned, gains and losses realized on sales of securities, and net investment income and gains, if any, to be distributed to shareholders of the Portfolios. The rate of exchange between the US dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of shortterm securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios books, and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of portfolio securities and other foreign currency denominated assets and liabilities at period end, resulting from changes in exchange rates. The value of cash held in foreign currencies at December 31, 2001, was substantially the same as its cost. The Portfolios separate that portion of the results of operations resulting from changes in the foreign exchange rates -- P-62 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- from the fluctuations arising from changes in the market prices of securities held in the portfolios. Similarly, the Portfolios separate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period. c. FORWARD CURRENCY CONTRACTS The Seligman International Portfolios may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings, or other amounts receivable or payable in foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. The contracts are valued daily at current exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. The gain or loss, if any, arising from the difference between the settlement value of the forward contract and the closing of such contract, is included in net realized gain or loss from foreign currency transactions. For federal income tax purposes, certain open forward currency contracts are treated as sold during the fiscal year and any gains or losses are recognized immediately. As a result, the amount of income distributable to shareholders may vary from the amount recognized for financial statement purposes. d. TAXES The Portfolios policy is to comply with the requirements of the Internal Revenue Code applicable to Regulated Investment Companies and to distribute substantially all of their taxable net income and net gain realized to shareholders. Therefore, no provisions for Federal income or excise taxes are required. Withholding taxes on foreign dividends have been provided for in accordance with the applicable countrys tax rules and rates. e. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Investment transactions are recorded on trade dates. Interest income is recorded on the accrual basis. The Portfolios amortize market discount and premium on debt securities. Dividends receivable and payable are recorded on ex-dividend dates, except that certain dividends from foreign securities where the ex-dividend dates may have passed are recorded as soon as the Fund is informed of the dividend. Other income is derived primarily from the settlement of class action litigation and is recorded when received. f. MULTIPLE CLASS ALLOCATIONS All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses of a Portfolio are allocated daily to each class of shares based upon the relative value of shares of each class. Class-specific expenses, which include 12b-1 fees and any other items that are specifically attributable to a particular class, are charged directly to such class. For the year ended December 31, 2001, 12b-1 fees were the only class-specific expenses. g. REPURCHASE AGREEMENTS The Portfolios may enter into repurchase agreements with commercial banks and with broker/dealers deemed to be creditworthy by J. & W. Seligman & Co. Incorporated (the Manager). Securities purchased subject to repurchase agreements are deposited with the Portfolios custodians and, pursuant to the terms of the repurchase agreements, must have an aggregate market value greater than or equal to the repurchase price, plus accrued interest, at all times. Procedures have been established to monitor, on a daily basis, the market value of the repurchase agreements underlying securities to ensure the existence of the proper level of collateral. The repurchase agreements held as of December 31, 2001 matured pursuant to their terms. h. EXPENSE ALLOCATIONS Expenses directly attributable to each Portfolio are charged to such Portfolio, and expenses that are applicable to more than one Portfolio are allocated among them. i. DISTRIBUTIONS TO SHAREHOLDERS The treatment for financial statement purposes of distributions made during the year from net investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences primarily are caused by differences in the timing of the recognition of certain components of income, expense or realized 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. 4. PURCHASES AND SALES OF SECURITIES Purchases and sales of portfolio securities, excluding US Government obligations and short-term investments, for the year ended December 31, 2001, were as follows:
PORTFOLIO PURCHASES SALES ------------------------ ------------ ------------ Bond . . . . . . . . . . $ 4,871,836 $ 4,925,257 Capital. . . . . . . . . 64,573,400 68,383,454 Common Stock . . . . . . 17,330,384 22,450,335 Communications and Information. . . . . . . 160,849,773 170,881,864 Frontier . . . . . . . . 16,803,365 18,726,164 Global Growth. . . . . . 9,328,916 11,058,147 Global Smaller Companies 11,170,368 12,587,586
PORTFOLIO PURCHASES SALES ---------------------- ----------- ----------- Global Technology. . . $33,877,162 $33,397,096 High-Yield Bond. . . . 9,321,554 8,911,733 Income . . . . . . . . 3,254,651 4,054,248 International Growth . 11,154,160 11,764,292 Large-Cap Growth . . . 6,401,378 6,480,252 Large-Cap Value. . . . 4,089,708 1,766,379 Small-Cap Value. . . . 98,787,032 15,124,829
For the year ended December 31, 2001, purchases and sales of US Government obligations were $4,825,007 and $4,478,068, respectively, for the Bond Portfolio, and $890,972 and $942,847, respectively, for the Income Portfolio. Identified cost of investments sold is used for both financial statement and federal income tax purposes. -- P-63 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- At December 31, 2001, the cost of investments for federal income tax purposes may be greater than the cost for financial reporting purposes, primarily due to the tax deferral of losses on wash sales. The tax basis cost and gross unrealized appreciation and depreciation of portfolio securities, including the effects of foreign currency translations, were as follows:
TAX BASIS UNREALIZED UNREALIZED PORTFOLIO COST APPRECIATION DEPRECIATION ------------------ ------------ ------------- ------------- Bond . . . . . . . $ 7,009,280 $ 75,956 $ 50,794 Capital. . . . . . 25,332,373 3,755,558 1,305,655 Common Stock . . . 22,588,000 2,584,920 1,792,741 Communications and Information. . . 128,361,325 8,841,613 7,072,770 Frontier . . . . . 12,204,284 1,657,430 1,028,462 Global Growth. . . 4,484,030 340,384 322,466 Global Smaller Companies. . . . 9,726,702 1,219,909 1,285,341
TAX BASIS UNREALIZED UNREALIZED PORTFOLIO COST APPRECIATION DEPRECIATION ----------------- ------------ ------------- ------------- Global Technology $ 19,276,865 $ 1,441,270 $ 2,172,968 High-Yield Bond . 13,526,473 293,790 1,451,355 Income. . . . . . 4,263,995 440,560 367,216 International Growth. . . . . 4,925,804 207,345 430,414 Large-Cap Growth. 4,124,177 168,732 494,143 Large-Cap Value . 7,011,529 833,506 323,718 Small-Cap Value . 102,937,890 19,860,814 2,272,667
5. MANAGEMENT FEE, ADMINISTRATIVE SERVICES, AND OTHER TRANSACTIONS The Manager manages the affairs of the Fund and provides or arranges for the necessary personnel and facilities. The Managers fee, which is calculated daily and payable monthly, is equal to 0.40%, on an annual basis, of each of Bond, Capital, Cash Management, Common Stock, and Income Portfolios daily net assets; equal to 0.75%, on an annual basis, of each of Communications and Information and Frontier Portfolios daily net assets; equal to 0.50%, on an annual basis, of High-Yield Bond Portfolios daily net assets. The Managers fee for each of the Seligman International Portfolios is equal to 1.00% per annum of the first $1 billion of average daily net assets, 0.95% per annum of the next $1 billion of average daily net assets, and 0.90% per annum in excess of $2 billion of average daily net assets of each Portfolio. The Managers fee for the Large-Cap Growth Portfolio is equal to 0.70% per annum of the first $1 billion of average daily net assets, 0.65% per annum of the next $1 billion, and 0.60% per annum in excess of $2 billion of average daily net assets of the Portfolio. The Managers fee for the Large-Cap Value Portfolio is equal to 0.80% per annum of the first $500 million of average daily net assets, 0.70% per annum of the next $500 million of average daily net assets, and 0.60% per annum in excess of $1 billion of average daily net assets of the Portfolio. The Managers fee for the Small-Cap Value Portfolio is equal to 1.00% per annum of the first $500 million of average daily net assets, 0.90% per annum of the next $500 million of average daily net assets, and 0.80% per annum in excess of $1 billion of average daily net assets of the Portfolio. Henderson Investment Management Limited (the Subadviser) is the subadviser to the Global Smaller Companies Portfolio responsible for furnishing investment advice, research, and assistance with respect to the Portfolios international investments. Under the subadvisory agreement, the Manager pays the Subadviser a subadvisory fee at a rate of 0.50% per annum of the average monthly assets under the Subadvisers supervision. The Subadivser is a wholly owned subsidiary of Henderson plc, which is an indirect subsidiary of AMP Limited, an Australian life insurance and financial services company. Prior to April 1, 2000, the subadviser also served as subadviser with respect to the international investments for the Global Growth, Global Technology and International Growth Portfolios. On that date, the Manager assumed full responsibility for the international investments of those Portfolios. Effective November 16, 2001, the Manager discontinued the voluntary waiver of its management fee for Cash Management Portfolio. Also effective November 16, 2001 (in the case of Small-Cap Value Portfolio, effective March 1, 2001), the Manager agreed to reimburse expenses, other than management and 12b-1 fees, that exceed the following rates per annum of average daily net assets of each Portfolio:
CURRENT PREVIOUS PORTFOLIO RATE RATE --------------------- -------- --------- Bond. . . . . . . . . 0.45% 0.20% Capital . . . . . . . 0.40 0.20 Cash Management . . . 0.30 - Common Stock. . . . . 0.40 0.20 Communications and Information . . 0.40 0.20 Frontier. . . . . . . 0.75 0.20 Global Growth . . . . 0.40 0.40
CURRENT PREVIOUS PORTFOLIO RATE RATE ------------------------ -------- --------- Global Smaller Companies 0.40% 0.40% Global Technology. . . . 0.40 0.40 High-Yield Bond. . . . . 0.50 0.20 Income . . . . . . . . . 0.55 0.20 International Growth . . 0.40 0.40 Large-Cap Growth . . . . 0.45 - Large-Cap Value. . . . . 0.40 - Small-Cap Value. . . . . 0.20 -
The amounts of these reimbursements and/or waivers for the year ended December 31, 2001 are disclosed in the Statements of Operations. Compensation of all officers of the Fund, all directors of the Fund who are employees of the Manager, and all personnel of the Fund and the Manager is paid by the Manager. Seligman Advisors, Inc. (the Distributor), a subsidiary of the Manager, acts as distributor of shares of the Fund and of contracts issued by variable annuity separate accounts of one insurance company and its affiliates. For the year ended December 31, 2001, the Distributor earned fees of $19,709 for distributing such contracts. -- P-64 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Under a Rule 12b-1 plan (the Plan) adopted by the Fund with respect to Class 2 shares of each Portfolio, insurance companies or their affiliates can enter into agreements with the Distributor and receive 12b-1 fees of up to 0.25%, on an annual basis, of the average daily net assets of Class 2 shares attributable to the particular insurance company for providing, among other things, personal services and/or the maintenance of shareholder accounts. Such fees are paid quarterly by each Portfolio to Seligman Advisors pursuant to the Plan. For the year ended December 31, 2001, fees incurred under the Plan aggregated $6,812, or 0.24% per annum; $40,404, or 0.25% per annum; $4,262, or 0.14% per annum; and $3,741, or 0.19% per annum of the average daily net assets of Class 2 shares of Capital Portfolio, Communications and Information Portfolio, Global Technology Portfolio and Small- Cap Value Portfolio, respectively. Certain officers and directors of the Fund are officers or directors of the Manager and the Distributor. The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Directors may elect to have their deferred fees accrue interest or earn a return based on the performance of the other funds in the Seligman Group of Investment Companies. The cost of such fees and earnings/loss accrued thereon is included in directors fees and expenses, and the accumulated balances at December 31, 2001, are included in other liabilities. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid. 6. CAPITAL LOSS CARRYFORWARDS AND OTHER TAX ADJUSTMENTS At December 31, 2001, the Portfolios had net capital loss carryforwards for federal income tax purposes which are available for offset against future taxable net capital gains. These net capital loss carryforwards expire in various amounts through 2009. Accordingly, no capital gain distributions are expected to be paid to shareholders of these portfolios until net capital gains have been realized in excess of the available capital loss carryforwards. The amounts, which were determined after adjustments for certain differences between financial reporting and tax purposes, such as wash sale losses, are as follows:
PORTFOLIO AMOUNT ------------------------------ ----------- Bond . . . . . . . . . . . . . $ 254,332 Capital. . . . . . . . . . . . 9,473,999 Communications and Information 25,235,200 Frontier . . . . . . . . . . . 238,385 Global Growth. . . . . . . . . 1,280,805 Global Smaller Companies . . . 633,858
PORTFOLIO AMOUNT ------------------------------ ---------- Global Technology. . . . . . . $9,503,030 High-Yield Bond. . . . . . . . 9,979,998 Income . . . . . . . . . . . . 214,507 International Growth . . . . . 2,459,486 Large-Cap Growth . . . . . . . 1,582,183 Large-Cap Value. . . . . . . . 34,864
In addition, the Portfolios elected to defer to January 1, 2002, the recognition for tax purposes of net losses realized on sales of investments after October 31, 2001. These post-October losses, which are available to offset future taxable net capital gains, are as follows:
PORTFOLIO AMOUNT --------------------- ---------- Common Stock. . . . . $ 988,146 High-Yield Bond . . . 1,486,885 Income. . . . . . . . 200,629
PORTFOLIO AMOUNT --------------------- -------- Large-Cap Growth. . . $109,395 Large-Cap Value . . . 180,832
As a result of the adjustments for wash sale and post-October losses, the Common Stock Portfolio had undistributed net realized long-term gain of $243,746 at December 31, 2001. 7. CHANGE IN ACCOUNTING PRINCIPLE As required, effective January 1, 2001, the Portfolios adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing discount and premium on debt securities using the interest method for financial statement reporting purposes only. Prior to January 1, 2001, the Portfolios amortized market discount and premium on debt securities using the straight line method. The cumulative effect of this accounting change was immaterial, and had no impact on the net assets of the Portfolios. The effect of the change on the components of income in 2001 was also immaterial. 8. COMMITTED LINE OF CREDIT All of the Portfolios, except the Cash Management Portfolio, are participants in a joint $825 million committed line of credit that is shared by substantially all open-end funds in the Seligman Group of Investment Companies. Each Portfolios borrowings are limited to 10% (5% for the Seligman International Portfolios) of its net assets. Borrowings pursuant to the credit facility are subject to interest at a rate equal to the overnight federal funds rate plus 0.50%. Each Portfolio incurs a commitment fee of 0.10% per annum on its share of the unused portion of the credit facility. The credit facility may be drawn upon only for temporary purposes and is subject to certain other customary restrictions. The credit facility commitment expires in June 2002, but is renewable annually with the consent of the participating banks. For the year ended December 31, 2001, none of the Portfolios borrowed from the credit facility. Subsequent to December 31, 2001, the Small-Cap Value Portfolio periodically borrowed from the credit facility. -- P-65 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 9. CAPITAL STOCK TRANSACTIONS At December 31, 2001, there were 20,000,000 shares of Capital Stock authorized for each of Global Growth, Global Technology, Large-Cap Growth, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000 shares for each of Bond, Capital, Global Smaller Companies, International Growth, and Income Portfolios; and 100,000,000 shares for each of Cash Management, Common Stock, Communications and Information, Frontier, and High-Yield Bond Portfolios, all at a par value of $0.001 per share. Transactions in shares of Capital Stock were as follows:
BOND PORTFOLIO CAPITAL PORTFOLIO -------------------- --------------------------------------------- CLASS 1 CLASS 1 CLASS 2 -------------------- -------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED 8/30/00* DECEMBER 31, DECEMBER 31, DECEMBER 31, TO 2001 2000 2001 2000 2001 12/31/00 --------- --------- --------- --------- ------------- --------- Sale of shares . . . . . . 553,377 330,153 160,216 743,027 140,543 63,845 Shares issued in payment of dividends . . . . . . 34,307 - 2,324 - -- Shares issued in payment of gain distributions. . - - 795,588 73,635 123,084 2,634 --------- --------- --------- --------- ------------- --------- Total. . . . . . . . . . . 587,684 330,153 958,128 816,662 263,627 66,479 --------- --------- --------- --------- ------------- --------- Shares redeemed. . . . . . (528,877) (229,491) (493,890) (466,047) (19,830) (2,907) --------- --------- --------- --------- ------------- --------- Increase in shares . . . . 58,807 100,662 464,238 350,615 243,797 63,572 ========= ========= ========= ========= ============= =========
CASH MANAGEMENT COMMON STOCK PORTFOLIO PORTFOLIO --------------------------- ------------------------ YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, --------------------------- ------------------------ 2001 2000 2001 2000 ------------- ------------ ----------- ----------- Sale of shares . . . . . . 112,248,639 67,583,435 1,960,193 881,019 Shares issued in payment of dividends . . . . . . 562,209 799,641 26,209 775 Shares issued in payment of gain distributions. . - - 265,345 98,284 ------------- ------------ ----------- ----------- Total. . . . . . . . . . . 112,810,848 68,383,076 2,251,747 980,078 ------------- ------------ ----------- ----------- Shares redeemed. . . . . . (112,917,253) (73,675,795) (2,360,228) (1,527,300) ------------- ------------ ----------- ----------- Decrease in shares . . . . (106,405) (5,292,719) (108,481) (547,222) ============= ============ =========== ===========
COMMUNICATIONS AND INFORMATION PORTFOLIO -------------------------------------------------- CLASS 1 CLASS 2 ------------------------ ------------------------ YEAR ENDED DECEMBER 31, DECEMBER 31, 5/1/00* ------------------------ DECEMBER 31, TO 2001 2000 2001 12/31/00 ----------- ----------- ------------- --------- Sale of shares . . . . . . 1,575,403 2,633,071 1,452,089 605,427 Shares issued in payment of dividends . . . . . . - - - - Shares issued in payment of gain distributions. . 1,745,450 1,127,836 253,448 65,430 ----------- ----------- ------------- --------- Total. . . . . . . . . . . 3,320,853 3,760,907 1,705,537 670,857 ----------- ----------- ------------- --------- Shares redeemed. . . . . . (2,944,706) (3,142,388) (914,683) (142,338) ----------- ----------- ------------- --------- Increase in shares . . . . 376,147 618,519 790,854 528,519 =========== =========== ============= ========= ---------------- * Commencement of offering of shares.
-- P-66 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
FRONTIER GLOBAL GROWTH GLOBAL SMALLER PORTFOLIO PORTFOLIO COMPANIES PORTFOLIO YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, ------------------------ ----------------------- ----------------------- 2001 2000 2001 2000 2001 2000 ----------- ----------- ----------- ---------- ---------- ----------- Sale of shares. . . . . . . . 1,574,742 3,038,751 341,572 550,559 414,591 210,989 Shares issued in payment of dividends. . . . . . . . - - - - - - Shares issued in payment of gain distributions . . . 72,697 - 782,440 8,497 150,522 35,124 ----------- ----------- ----------- ---------- ---------- ----------- Total . . . . . . . . . . . . 1,647,439 3,038,751 1,124,012 559,056 565,113 246,113 ----------- ----------- ----------- ---------- ---------- ----------- Shares redeemed . . . . . . . (1,758,198) (3,342,110) (517,136) (659,305) (589,613) (371,823) ----------- ----------- ----------- ---------- ---------- ----------- Increase (decrease) in shares (110,759) (303,359) 606,876 (100,249) (24,500) (125,710) =========== =========== =========== ========== ========== ===========
GLOBAL TECHNOLOGY PORTFOLIO ----------------------------------------------- HIGH-YIELD BOND CLASS 1 CLASS 2 PORTFOLIO ----------------------- ---------------------- ------------------------ YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, ----------------------- YEAR ENDED 5/1/00* TO ------------------------ 2001 2000 12/31/01 12/31/00 2001 2000 ---------- ----------- ---------- ---------- ----------- ----------- Sale of shares. . . . . . . . 518,457 1,003,883 155,145 171,741 1,447,590 486,316 Shares issued in payment of dividends. . . . . . . . - - - - 371,091 792 Shares issued in payment of gain distributions . . . 244,034 45,785 42,163 5,980 - - ---------- ----------- ---------- ---------- ----------- ----------- Total . . . . . . . . . . . . 762,491 1,049,668 197,308 177,721 1,818,681 487,108 ---------- ----------- ---------- ---------- ----------- ----------- Shares redeemed . . . . . . . (592,075) (595,418) (117,198) (8,881) (1,496,133) (1,563,213) ---------- ----------- ---------- ---------- ----------- ----------- Increase (decrease) in shares 170,416 454,250 80,110 168,840 322,548 (1,076,105) ========== =========== ========== ========== =========== ===========
INCOME INTERNATIONAL GROWTH LARGE-CAP GROWTH PORTFOLIO PORTFOLIO PORTFOLIO YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, ----------------------- ----------------------- ----------------------- 2001 2000 2001 2000 2001 2000 ----------- ---------- ----------- ---------- ---------- ----------- Sale of shares. . . . . . . . 192,290 96,861 3,078,988 251,107 360,898 515,577 Shares issued in payment of dividends. . . . . . . . 24,164 912 - 8,687 832 - Shares issued in payment of gain distributions . . . - 1,641 - 26,184 53,758 - ----------- ---------- ----------- ---------- ---------- ----------- Total . . . . . . . . . . . . 216,454 99,414 3,078,988 285,978 415,488 515,577 ----------- ---------- ----------- ---------- ---------- ----------- Shares redeemed . . . . . . . (307,979) (382,273) (3,154,674) (231,080) (404,162) (302,659) ----------- ---------- ----------- ---------- ---------- ----------- Increase (decrease) in shares (91,525) (282,859) (75,686) 54,898 11,326 212,918 =========== ========== =========== ========== ========== ===========
LARGE-CAP VALUE SMALL-CAP VALUE PORTFOLIO PORTFOLIO CLASS 1 CLASS 2 ----------------------- ----------------------- ---------- YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, ----------------------- ----------------------- 5/1/01* TO 2001 2000 2001 2000 12/31/01 ---------- ----------- ----------- ---------- ---------- Sale of shares. . . . . . . . 772,771 308,400 7,848,772 1,373,011 617,927 Shares issued in payment of dividends. . . . . . . . 7,975 91 - - - Shares issued in payment of gain distributions . . . 3,915 3,706 18,722 22,685 827 ---------- ----------- ----------- ---------- ---------- Total . . . . . . . . . . . . 784,661 312,197 7,867,494 1,395,696 618,754 ---------- ----------- ----------- ---------- ---------- Shares redeemed . . . . . . . (570,178) (410,367) (1,751,022) (381,387) (221,513) ---------- ----------- ----------- ---------- ---------- Increase (decrease) in shares 214,483 (98,170) 6,116,472 1,014,309 397,241 ========== =========== =========== ========== ==========
-- P-67 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- The tables below are intended to help you understand the financial performance of each Class of each Portfolio for the past five years or from its inception, if less than five years. Certain information reflects financial results for a single share that was held throughout the periods shown. Per share amounts are calculated using average shares outstanding. Total return shows the rate that you would have earned (or lost) on an investment in each Portfolio, assuming you reinvested all your dividends and capital gain distributions. Total returns do not reflect any administrative fees or asset-based sales charges that are associated with variable annuity and variable life insurance contracts, and are not annualized for periods of less than one year.
BOND PORTFOLIO ---------------------------------------------- YEAR ENDED DECEMBER 31, ---------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 -------- ------- -------- ------- -------- NET ASSET VALUE, BEGINNING OF YEAR .. . . . . . . . . . $ 10.22 $ 9.27 $ 10.38 $10.24 $ 9.89 -------- ------- -------- ------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . . . . . . 0.50 0.60 0.64 0.59 0.54 Net realized and unrealized gain (loss) on investments. 0.06 0.35 (1.10) 0.25 0.35 -------- ------- -------- ------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . 0.56 0.95 (0.46) 0.84 0.89 -------- ------- -------- ------- -------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . . . . (0.53) - (0.65) (0.59) (0.54) Distributions from net realized capital gain. . . . . . - - - (0.11) - -------- ------- -------- ------- -------- TOTAL DISTRIBUTIONS . . . . . . . . . . . . . . . . . . (0.53) - (0.65) (0.70) (0.54) -------- ------- -------- ------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 10.25 $10.22 $ 9.27 $10.38 $ 10.24 ======== ======= ======== ======= ======== TOTAL RETURN: 5.52% 10.25% (4.48)% 8.20% 8.98% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . . . . . . $ 7,103 $6,483 $ 4,947 $7,320 $ 7,232 Ratio of expenses to average net assets . . . . . . . . 0.63% 0.60% 0.60% 0.60% 0.60% Ratio of net income to average net assets . . . . . . . 5.35% 6.23% 5.56% 5.58% 6.22% Portfolio turnover rate . . . . . . . . . . . . . . . . 146.08% 63.07% 64.22% 73.31% 170.12% Without expense reimbursements:+ Ratio of expenses to average net assets . . . . . . . . 0.76% 0.84% 0.71% 0.82% 0.83% Ratio of net income to average net assets . . . . . . . 5.22% 5.99% 5.45% 5.36% 5.99% ---------------- + The Manager, at its discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
-- P-68 -- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
CAPITAL PORTFOLIO -------------------------------------------------------------------------- CLASS 1 CLASS 2 ------------------------------------------------- ----------------------- YEAR ENDED DECEMBER 31, YEAR 8/30/00* ------------------------------------------------- ENDED TO PER SHARE DATA: 2001 2000 1999 1998 1997 12/31/01 12/31/00 --------- -------- -------- -------- -------- ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD. . . . . $ 24.68 $ 23.90 $ 20.81 $ 18.10 $ 16.01 $ 24.68 $ 33.31 --------- -------- -------- -------- -------- ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss). . . . . . . . . (0.06) 0.02 0.01 0.04 0.03 (0.11) (0.05) Net realized and unrealized gain (loss) on investments .. . . . . . . . . . . . . . (4.01) 2.06 10.21 3.89 3.35 (4.01) (7.28) --------- -------- -------- -------- -------- ---------- ----------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . (4.07) 2.08 10.22 3.93 3.38 (4.12) (7.33) --------- -------- -------- -------- -------- ---------- ----------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . (0.02) - (0.01) (0.04) (0.03) - - Distributions from net realized capital gain. (8.22) (1.30) (7.12) (1.18) (1.26) (8.22) (1.30) --------- -------- -------- -------- -------- ---------- ----------- TOTAL DISTRIBUTIONS . . . . . . . . . . . . . (8.24) (1.30) (7.13) (1.22) (1.29) (8.22) (1.30) --------- -------- -------- -------- -------- ---------- ----------- NET ASSET VALUE, END OF PERIOD. . . . . . . . $ 12.37 $ 24.68 $ 23.90 $ 20.81 $ 18.10 $ 12.34 $ 24.68 ========= ======== ======== ======== ======== ========== =========== TOTAL RETURN: (15.97)% 8.50% 53.35% 22.19% 21.31% (16.18)% (22.15)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted). . . $ 24,349 $37,138 $27,586 $24,141 $20,400 $ 3,792 $ 1,569 Ratio of expenses to average net assets . . . 0.61% 0.59% 0.59% 0.60% 0.60% 0.85% 0.84%+ Ratio of net income (loss) to average net assets. . . . . . . . . . . . . (0.31)% 0.07% 0.03% 0.19% 0.16% (0.55)% (0.66)%+ Portfolio turnover rate . . . . . . . . . . . 215.16% 230.42% 172.88% 130.86% 93.97% 215.16% 230.42%++ Without expense reimbursement:o Ratio of expenses to average net assets . . . 0.70% 0.62% 0.94% Ratio of net income (loss) to average net assets . . . . . . . . . . . (0.39)% 0.14% (0.63)%
CASH MANAGEMENT PORTFOLIO ------------------------------------------------ YEAR ENDED DECEMBER 31, ------------------------------------------------ 2001 2000 1999 1998 1997 -------- -------- -------- -------- -------- PER SHARE DATA: NET ASSET VALUE, BEGINNING OF YEAR . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income. . . . . . . . . . . 0.038 0.062 0.050 0.053 0.054 -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS . . . . . 0.038 0.062 0.050 0.053 0.054 -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Distributions from net investment income . (0.038) (0.062) (0.050) (0.053) (0.054) -------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS. . . . . . . . . . . . (0.038) (0.062) (0.050) (0.053) (0.054) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF YEAR . . . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======== ======== ======== ======== ======== TOTAL RETURN: 3.88% 6.38% 5.07% 5.42% 5.52% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted) . . $12,211 $12,318 $17,611 $10,520 $ 8,635 Ratio of expenses to average net assets. . 0.07% - - - - Ratio of net income to average net assets. 3.82% 6.17% 4.99% 5.30% 5.39% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets. . 0.72% 0.72% 0.65% 0.67% 0.79% Ratio of net income to average net assets. 3.17% 5.45% 4.34% 4.63% 4.60% ---------------- * Commencement of offering of shares. + Annualized. ++ For the year ended December 31, 2000. o The Manager, at its discretion, waived management fees and/or reimbursed expenses for certain periods presented. See Notes to Financial Statements.
-- P-69 --
SELIGMAN PORTFOLIOS, INC. ---------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ---------------------------------------------------------------------------------------------------- COMMON STOCK PORTFOLIO YEAR ENDED DECEMBER 31, ----------------------------------------------------- ----------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF YEAR . . . . . $ 14.23 $ 16.61 $ 18.63 $ 16.28 $ 15.92 --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . 0.11 0.12 0.32 0.29 0.33 Net realized and unrealized gain (loss) on investments. . . . . . . . . . . . . . . (1.88) (1.86) 2.03 3.61 3.01 --------- --------- --------- --------- --------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . (1.77) (1.74) 2.35 3.90 3.34 --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . (0.15) (0.01) (0.32) (0.31) (0.32) Distributions from net realized capital gain. (1.47) (0.63) (4.05) (1.24) (2.66) --------- --------- --------- --------- --------- TOTAL DISTRIBUTIONS . . . . . . . . . . . . . (1.62) (0.64) (4.37) (1.55) (2.98) --------- --------- --------- --------- --------- NET ASSET VALUE, END OF YEAR. . . . . . . . . $ 10.84 $ 14.23 $ 16.61 $ 18.63 $ 16.28 ========= ========= ========= ========= ========= TOTAL RETURN: (12.24)% (10.53)% 13.15% 24.16% 21.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . $ 23,756 $ 32,738 $ 47,303 $ 62,588 $ 50,737 Ratio of expenses to average net assets . . . 0.59% 0.60% 0.52% 0.52% 0.53% Ratio of net income to average net assets . . 0.59% 0.71% 1.30% 1.61% 1.92% Portfolio turnover rate . . . . . . . . . . . 64.45% 52.01% 38.11% 55.55% 80.13%
COMMUNICATIONS AND INFORMATION PORTFOLIO ----------------------------------------------------------------------------------- CLASS 1 CLASS 2 ------------------------------------------------------- -------------------------- YEAR ENDED DECEMBER 31, YEAR 5/1/00* ------------------------------------------------------- ENDED TO PER SHARE DATA: 2001 2000 1999 1998 1997 12/31/2001 12/31/2000 --------- ---------- ---------- --------- -------- ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD. . . . . $ 14.82 $ 26.70 $ 17.14 $ 13.09 $ 14.69 $ 14.80 $ 30.61 --------- ---------- ---------- --------- -------- ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss . . . . . . . . . . . . . (0.07) (0.11) (0.10) (0.08) (0.08) (0.11) (0.08) Net realized and unrealized gain (loss) on investments. . . . . . . . . . . . . . . 0.80 (9.45) 14.36 4.81 3.13 0.80 (13.41) --------- ---------- ---------- --------- -------- ------------ ------------ TOTAL FROM INVESTMENT OPERATIONS. . . . . . . 0.73 (9.56) 14.26 4.73 3.05 0.69 (13.49) --------- ---------- ---------- --------- -------- ------------ ------------ LESS DISTRIBUTIONS: Distributions from net realized capital gain. (2.96) (2.32) (4.70) (0.68) (4.65) (2.96) (2.32) --------- ---------- ---------- --------- -------- ------------ ------------ TOTAL DISTRIBUTIONS . . . . . . . . . . . . . (2.96) (2.32) (4.70) (0.68) (4.65) (2.96) (2.32) --------- ---------- ---------- --------- -------- ------------ ------------ NET ASSET VALUE, END OF PERIOD. . . . . . . . $ 12.59 $ 14.82 $ 26.70 $ 17.14 $ 13.09 $ 12.53 $ 14.80 ========= ========== ========== ========= ======== ============ ============ TOTAL RETURN: 5.34% (0.36) 0.86 36.49% 22.22% 5.08% (44.40)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted). . . $113,424 127901.00 213961.00 $122,279 $87,633 $ 16,537 $ 7,822 Ratio of expenses to average net assets . . . 0.93% 0.01 0.01 0.87% 0.87% 1.18% 1.12%+ Ratio of net loss to average net assets . . . (0.45)% (0.00) (0.01) (0.56)% (0.49)% (0.70)% (0.61)%+ Portfolio turnover rate . . . . . . . . . . . 130.94% 1.04 1.18 132.57% 277.14% 130.94% 104.41%++ ------------------------ * Commencement of offering of shares. + Annualized. ++ For the year ended December 31, 2000. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ---------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ---------------------------------------------------------------------------------------------------------- FRONTIER PORTFOLIO ------------------------------------------------- YEAR ENDED DECEMBER 31, ------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 -------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF YEAR. . . . . . . . . . . $ 15.26 $ 18.13 $ 15.55 $ 15.78 $ 14.98 -------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss . . . . . . . . . . . . . . . . . . (0.05) (0.18) (0.10) (0.08) (0.08) Net realized and unrealized gain (loss) on investments. (1.12) (2.69) 2.68 (0.15) 2.47 -------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . (1.17) (2.87) 2.58 (0.23) 2.39 -------- --------- -------- -------- -------- LESS DISTRIBUTIONS: Distributions from net realized capital gain. . . . . . (0.97) - - - (1.59) -------- --------- -------- -------- -------- TOTAL DISTRIBUTIONS: . . . . . . . . . . . . . . . . . (0.97) - - - (1.59) -------- --------- -------- -------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 13.12 $ 15.26 $ 18.13 $ 15.55 $ 15.78 ======== ========= ======== ======== ======== TOTAL RETURN: (7.35)% (15.83)% 16.59% (1.46)% 16.33% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . . . . . . $13,174 $ 17,011 $25,706 $39,148 $42,973 Ratio of expenses to average net assets . . . . . . . . 1.01% 0.95% 0.95% 0.92% 0.89% Ratio of net loss to average net assets . . . . . . . . (0.38)% (0.73)% (0.68)% (0.51)% (0.49)% Portfolio turnover rate . . . . . . . . . . . . . . . . 125.78% 150.67% 57.93% 86.52% 101.68% Without expense reimbursement:+ Ratio of expenses to average net assets . . . . . . . . 1.24% 1.18% 0.96% Ratio of net loss to average net assets . . . . . . . . (0.61)% (0.96)% (0.69)%
GLOBAL GROWTH PORTFOLIO -------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF YEAR. . . . . . . . . . . $ 15.11 $ 18.22 $ 13.33 $ 11.03 $ 9.91 --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss). . . . . . . . . . . . . . 0.02 (0.13) (0.06) (0.01) 0.01 Net realized and unrealized gain (loss) on investments. (2.99) (2.28) 7.31 2.25 1.79 Net realized and unrealized gain (loss) on foreign currency transactions . . . . . . . . (0.20) (0.46) (0.44) 0.14 (0.56) --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . (3.17) (2.87) 6.81 2.38 1.24 --------- --------- -------- -------- -------- LESS DISTRIBUTIONS: Distributions from net realized capital gain. . . . . . (7.92) (0.24) (1.92) (0.08) (0.12) --------- --------- -------- -------- -------- TOTAL DISTRIBUTIONS: . . . . . . . . . . . . . . . . . (7.92) (0.24) (1.92) (0.08) (0.12) --------- --------- -------- -------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 4.02 $ 15.11 $ 18.22 $ 13.33 $ 11.03 ========= ========= ======== ======== ======== TOTAL RETURN: (19.93)% (15.78)% 52.49% 21.60% 12.57% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . . . . . . $ 4,659 $ 8,348 $11,889 $ 8,643 $ 5,449 Ratio of expenses to average net assets . . . . . . . . 1.40% 1.40% 1.40% 1.40% 1.40% Ratio of net income (loss) to average net assets. . . . 0.13% (0.67)% (0.38)% (0.06)% 0.01% Portfolio turnover rate . . . . . . . . . . . . . . . . 161.49% 125.84% 69.18% 48.99% 77.85% Without expense reimbursement:++ Ratio of expenses to average net assets . . . . . . . . 1.74% 1.71% 1.45% 1.60% 2.11% Ratio of net loss to average net assets . . . . . . . . (0.20)% (0.98)% (0.43)% (0.26)% (0.70)% ------------------------ + The Manager, at its discretion, reimbursed expenses for certain periods presented. ++ The Manager, and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ----------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------------------------------------------------------------------- GLOBAL SMALLER COMPANIES PORTFOLIO -------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF YEAR . . . . . . . . . . $ 14.40 $ 17.48 $ 13.62 $ 12.98 $ 12.87 --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss). . . . . . . . . . . . . . (0.06) (0.09) (0.06) (0.01) 0.02 Net realized and unrealized gain (loss) on investments. (1.40) (1.91) 4.10 1.02 1.17 Net realized and unrealized loss on foreign currency transactions. . . . . . . . . . . (0.79) (0.56) (0.18) (0.17) (0.75) --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . (2.25) (2.56) 3.86 0.84 0.44 --------- --------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . . . . - - - - (0.02) Distributions from net realized capital gain. . . . . . (1.82) (0.52) - (0.20) (0.31) --------- --------- -------- -------- -------- TOTAL DISTRIBUTIONS:. . . . . . . . . . . . . . . . . . (1.82) (0.52) - (0.20) (0.33) --------- --------- -------- -------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 10.33 $ 14.40 $ 17.48 $ 13.62 $ 12.98 ========= ========= ======== ======== ======== TOTAL RETURN: (15.25)% (14.63)% 28.34% 6.58% 3.43% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted) . . . . . . . . $ 10,017 $ 14,310 $19,569 $20,814 $20,505 Ratio of expenses to average net assets . . . . . . . . 1.40% 1.39% 1.40% 1.40% 1.40% Ratio of net income (loss) to average net assets. . . . (0.49)% (0.46)% (0.46)% (0.06)% 0.24% Portfolio turnover rate . . . . . . . . . . . . . . . . 100.83% 84.86% 46.75% 66.40% 64.81% Without expense reimbursement:++ Ratio of expenses to average net assets . . . . . . . . 1.96% 1.60% 1.50% 1.56% Ratio of net income (loss) to average net assets. . . . (1.05)% (0.66)% (0.16)% 0.08%
GLOBAL TECHNOLOGY PORTFOLIO ------------------------------------------------------------------------------ CLASS 1 CLASS 2 -------------------------------------------------- -------------------------- YEAR ENDED DECEMBER 31, YEAR 5/1/00* -------------------------------------------------- -------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 12/31/2001 12/31/2000 --------- --------- -------- -------- -------- ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD. . . . . . . $ 20.14 $ 27.42 $ 13.85 $ 10.59 $ 10.32 $ 20.14 $ 30.96 --------- --------- -------- -------- -------- ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss). . . . . . . . . . . (0.14) (0.08) (0.09) (0.05) 0.01 (0.17) (0.12) Net realized and unrealized gain (loss) on investments (4.06) (6.39) 16.25 3.81 2.15 (4.06) (10.01) Net realized and unrealized gain (loss) on foreign currency transactions. . . . . . . . (0.25) (0.01) (0.04) 0.11 (0.19) (0.25) 0.11 --------- --------- -------- -------- -------- ------------ ------------ TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . (4.45) (6.48) 16.12 3.87 1.97 (4.48) (10.02) --------- --------- -------- -------- -------- ------------ ------------ LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . - - - - (0.01) - - Distributions from net realized capital gain. . . (2.73) (0.80) (2.55) (0.61) (1.69) (2.73) (0.80) --------- --------- -------- -------- -------- ------------ ------------ TOTAL DISTRIBUTIONS:. . . . . . . . . . . . . . . (2.73) (0.80) (2.55) (0.61) (1.70) (2.73) (0.80) --------- --------- -------- -------- -------- ------------ ------------ NET ASSET VALUE, END OF PERIOD. . . . . . . . . . $ 12.96 $ 20.14 $ 27.42 $ 13.85 $ 10.59 $ 12.93 $ 20.14 ========= ========= ======== ======== ======== ============ ============ TOTAL RETURN: (22.05)% (23.75)% 118.80% 36.80% 19.53% (22.20)% (25.99)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 18,533 $ 25,370 $22,087 $ 6,130 $ 3,686 $ 3,219 $ 3,400 Ratio of expenses to average net assets 1.40% 1.30% 1.40% 1.40% 1.40% 1.54% 1.55%+ Ratio of net income (loss) to average net assets (0.87)% (0.46)% (0.51)% (0.43)% 0.12% (1.02)% (0.84)%+ Portfolio turnover rate 160.75% 142.42% 116.88% 82.27% 167.36% 160.75% 142.42%o Without expense reimbursement:++ Ratio of expenses to average net assets 1.61% 1.41% 1.80% 2.10% 1.75% Ratio of net loss to average net assets (1.08)% (0.52)% (0.83)% (0.58)% (1.23)% ------------------------ * Commencement of offering of shares. + Annualized. ++ The Manager, and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for certain periods presented. o For the year ended December 31, 2000. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ---------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ---------------------------------------------------------------------------------------------------------- HIGH-YIELD BOND PORTFOLIO ------------------------------------------------- YEAR ENDED DECEMBER 31, ------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF YEAR . . . . . . . . . . $ 8.73 $ 9.59 $ 10.87 $ 11.87 $ 11.19 --------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . . . . . . 1.17 1.03 1.19 1.11 0.91 Net realized and unrealized gain (loss) on investments. (2.46) (1.89) (1.27) (0.99) 0.78 --------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . (1.29) (0.86) (0.08) 0.12 1.69 --------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . . . . (1.34) 0.00* (1.20) (1.11) (0.90) Distributions from net realized capital gain. . . . . . - - - (0.01) (0.11) --------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS: . . . . . . . . . . . . . . . . . (1.34) - (1.20) (1.12) (1.01) --------- -------- -------- -------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 6.10 $ 8.73 $ 9.59 $ 10.87 $ 11.87 ========= ======== ======== ======== ======== TOTAL RETURN: (14.71)% (8.93)% (0.75)% 1.02% 15.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted) . . . . . . . . $ 12,510 $15,080 $26,892 $32,253 $23,268 Ratio of expenses to average net assets . . . . . . . . 0.70% 0.70% 0.70% 0.70% 0.70% Ratio of net income to average net assets . . . . . . . 10.50% 11.02% 10.33% 9.60% 9.61% Portfolio turnover rate . . . . . . . . . . . . . . . . 71.22% 29.57% 57.05% 43.13% 74.54% Without expense reimbursement:+ Ratio of expenses to average net assets . . . . . . . . 0.78% 0.78% 0.77% 0.74% 0.79% Ratio of net income to average net assets . . . . . . . 10.42% 10.94% 10.26% 9.56% 9.52% INCOME PORTFOLIO ------------------------------------------------- YEAR ENDED DECEMBER 31, ------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF YEAR. . . . . . . . . . . $ 9.65 $ 9.91 $ 11.01 $ 10.80 $ 10.52 --------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . . . . . . 0.47 0.32 0.53 0.45 0.56 Net realized and unrealized gain (loss) on investments. (0.62) (0.54) (0.23) 0.38 0.91 --------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . . . . (0.15) (0.22) 0.30 0.83 1.47 --------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . . . . (0.46) (0.01) (0.52) (0.46) (0.55) Distributions from net realized capital gain. . . . . . - (0.03) (0.88) (0.16) (0.64) --------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS: . . . . . . . . . . . . . . . . . (0.46) (0.04) (1.40) (0.62) (1.19) --------- -------- -------- -------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . . . . $ 9.04 $ 9.65 $ 9.91 $ 11.01 $ 10.80 ========= ======== ======== ======== ======== TOTAL RETURN: (1.49)% (2.20)% 2.87% 7.76% 14.02% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . . . . . . $ 4,459 $ 5,640 $ 8,595 $14,582 $13,835 Ratio of expenses to average net assets . . . . . . . . 0.64% 0.60% 0.60% 0.60% 0.60% Ratio of net income to average net assets . . . . . . . 3.34% 3.07% 3.62% 3.94% 4.71% Portfolio turnover rate . . . . . . . . . . . . . . . . 88.69% 61.14% 75.08% 70.45% 96.99% Without expense reimbursement:+ Ratio of expenses to average net assets . . . . . . . . 1.02% 0.83% 0.72% 0.61% 0.63% Ratio of net income to average net assets . . . . . . . 2.96% 2.84% 3.50% 3.93% 4.68% ------------------------ * During 2000, a dividend of $0.004 per share was paid. + The Manager, at its discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ---------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ---------------------------------------------------------------------------------------------------- INTERNATIONAL GROWTH PORTFOLIO ------------------------------------------------- YEAR ENDED DECEMBER 31, ------------------------------------------------- PER SHARE DATA: 2001 2000 1999 1998 1997 --------- --------- -------- ------- -------- NET ASSET VALUE, BEGINNING OF YEAR . . . . . . . $ 10.65 $ 16.63 $ 15.37 $13.54 $ 12.96 --------- --------- -------- ------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . . . 0.03 0.06 0.05 0.08 0.03 Net realized and unrealized gain (loss) on investments. . . . . . . . . . . . . . . . . . (2.43) (4.59) 4.59 1.90 2.11 Net realized and unrealized gain (loss) on foreign currency transactions. . . . . . . . . (0.20) (0.88) (0.73) 0.16 (1.06) --------- --------- -------- ------- -------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . (2.60) (5.41) 3.91 2.14 1.08 --------- --------- -------- ------- -------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . - (0.14) - (0.15) (0.03) Distributions from net realized capital gain. . . - (0.43) (2.65) (0.16) (0.47) --------- --------- -------- ------- -------- TOTAL DISTRIBUTIONS:. . . . . . . . . . . . . . . - (0.57) (2.65) (0.31) (0.50) --------- --------- -------- ------- -------- NET ASSET VALUE, END OF YEAR. . . . . . . . . . . $ 8.05 $ 10.65 $ 16.63 $15.37 $ 13.54 --------- --------- -------- ------- -------- TOTAL RETURN: (24.41)% (32.47)% 26.64% 15.81% 8.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted). . . . . . $ 4,793 $ 7,150 $10,248 $9,893 $ 9,182 Ratio of expenses to average net assets . . . . . 1.40% 1.40% 1.39% 1.40% 1.40% Ratio of net income (loss) to average net assets. 0.34% (0.57)% 0.33% 0.52% 0.43% Portfolio turnover rate . . . . . . . . . . . . . 199.09% 275.32% 79.17% 75.81% 89.43% Without expense reimbursement:++ Ratio of expenses to average net assets . . . . . 1.80% 2.03% 1.66% 1.78% 2.07% Ratio of net income (loss) to average net assets. (0.06)% (1.20)% 0.06% 0.14% (0.24)%
LARGE-CAP GROWTH PORTFOLIO LARGE-CAP VALUE PORTFOLIO -------------------------------- --------------------------------------- YEAR ENDED YEAR ENDED 5/1/98** DECEMBER 31, 5/1/99** DECEMBER 31, TO -------------------- TO --------------------------- ---------- PER SHARE DATA: 2001 2000 12/31/99 2001 2000 1999 12/31/98 --------- --------- ---------- -------- ------- -------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD. . . . . . . $ 10.21 $ 12.16 $ 10.00 $ 11.59 $ 9.28 $ 9.66 $ 10.00 --------- --------- ---------- -------- ------- -------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income . . . . . . . . . . . . . . - 0.01 - 0.09 0.14 0.10 0.04 Net realized and unrealized gain (loss) on investments. . . . . . . . . . . . . . . . . . (1.89) (1.96) 2.16 (1.06) 2.25 (0.37) (0.07) --------- --------- ---------- -------- ------- -------- ---------- TOTAL FROM INVESTMENT OPERATIONS. . . . . . . . . (1.89) (1.95) 2.16 (0.97) 2.39 (0.27) (0.03) --------- --------- ---------- -------- ------- -------- ---------- LESS DISTRIBUTIONS: Dividends from net investment income. . . . . . . (0.01) - - (0.11) 0.00* (0.11) (0.04) Distributions from net realized capital gain. . . (0.84) - - (0.05) (0.08) - (0.27) --------- --------- ---------- -------- ------- -------- ---------- TOTAL DISTRIBUTIONS:. . . . . . . . . . . . . . . (0.85) - - (0.16) (0.08) (0.11) (0.31) --------- --------- ---------- -------- ------- -------- ---------- NET ASSET VALUE, END OF PERIOD. . . . . . . . . . $ 7.47 $ 10.21 $ 12.16 $ 10.46 $11.59 $ 9.28 $ 9.66 ========= ========= ========== ======== ======= ======== ========== TOTAL RETURN: (18.37)% (16.04)% 21.60% (8.28)% 25.84% (2.76)% (0.26)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted). . . . . $ 3,930 $ 5,255 $ 3,668 $ 7,708 $6,057 $ 5,758 $ 3,845 Ratio of expenses to average net assets . . . . . 0.74% 0.70% 0.70%+ 0.83% 0.80% 0.80% 0.80%+ Ratio of net income (loss) to average net assets. (0.04)% 0.08% (0.03)%+ 1.13% 1.51% 1.18% 1.11%+ Portfolio turnover rate . . . . . . . . . . . . . 166.24% 179.44% 56.69% 28.17% 42.29% 28.01% 65.82% Without management fee waiver and expense reimbursement: Ratio of expenses to average net assets . . . . . 1.13% 1.18% 1.52%+ 1.10% 1.22% 1.13% 2.24%+ Ratio of net income (loss) to average net assets. (0.42)% (0.40)% (0.85)%+ 0.86% 1.09% 0.85% (0.33)%+ ------------------------ * During 2000, a dividend of $0.002 per share was paid. ** Commencement of operations. + Annualized. ++ The Manager and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for the periods presented. o The Manager, at its discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
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SELIGMAN PORTFOLIOS, INC. ------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) ------------------------------------------------------------------------------------------------------------ SAMLL -CAP VALUE PORTFOLIO ------------------------------------------------------------- CLASS 1 CLASS 2 ----------------------------------------------- ------------ YEAR ENDED DECEMBER 31, 5/1/98* 5/1/01** --------------------------------- TO TO PER SHARE DATA: 2001 2000 1999 12/31/1998 12/31/2001 ---------- --------- ---------- ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD. . . . . $ 10.58 $ 8.08 $ 7.31 $ 10.00 $ 10.78 ---------- --------- ---------- ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss . . . . . . . . . . . . . (0.03) (0.01) (0.03) (0.02) (0.03) Net realized and unrealized gain (loss) on investments. . . . . . . . . . . . . . . . 2.52 2.66 2.49 -1.73 2.32 ---------- --------- ---------- ------------ ------------ TOTAL FROM INVESTMENT OPERATIONS . . . . . . 2.49 2.65 2.46 -1.75 2.29 ---------- --------- ---------- ------------ ------------ LESS DISTRIBUTIONS: Distributions from net realized capital gain. -0.03 -0.15 -1.69 -0.94 -0.03 ---------- --------- ---------- ------------ ------------ TOTAL DISTRIBUTIONS:. . . . . . . . . . . . . -0.03 -0.15 -1.69 -0.94 -0.03 ---------- --------- ---------- ------------ ------------ NET ASSET VALUE, END OF PERIOD. . . . . . . . $ 13.04 $ 10.58 $ 8.08 $ 7.31 $ 13.04 ========== ========= ========== ============ ============ TOTAL RETURN: 23.52% 33.00% 35.26% (17.00)% 21.23% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted). . . $ 100,090 $ 16,495 $ 4,403 $ 2,469 $ 5,178 Ratio of expenses to average net assets . . . 1.19% 1.00% 1.00% 1.00%+ 1.39%+ Ratio of net loss to average net assets . . . (0.29)% (0.22)% (0.27)% (0.34)%+ (0.46)%+ Portfolio turnover rate . . . . . . . . . . . 29.99% 42.27% 90.51% 73.87% 29.99%++ Without expense reimbursement: Ratio of expenses to average net assets . . . 1.22% 1.45% 1.41% 3.08%+ 1.41%+ Ratio of net loss to average net assets . . . (0.32)% (0.67)% (0.68)% (2.43)%+ (0.48)%+ ------------------------ * Commencement of operations. ** Commencement of offering of shares. + Annualized. ++ For the year ended December 31, 2001. 0 The Manager, at its discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
- P-75 - SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) -------------------------------------------------------------------------------- REPORT OF THE INDEPENDENT AUDITORS The Directors and Shareholders, Seligman Portfolios, Inc.: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Seligman Portfolios, Inc. (comprising, the Seligman Bond Portfolio, Seligman Capital Portfolio, Seligman Cash Management Portfolio, Seligman Common Stock Portfolio, Seligman Communications and Information Portfolio, Seligman Frontier Portfolio, Seligman Global Growth Portfolio, Seligman Global Smaller Companies Portfolio, Seligman Global Technology Portfolio, Seligman High-Yield Bond Portfolio, Seligman Income Portfolio, Seligman International Growth Portfolio, Seligman Large-Cap Growth Portfolio, Seligman Large-Cap Value Portfolio, and Seligman Small-Cap Value Portfolio, and collectively referred to as the "Fund") as of December 31, 2001, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2001, by correspondence with the custodians and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective portfolios constituting Seligman Portfolios, Inc. at December 31, 2001, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. /S/ ERNST & YOUNG LLP New York, New York February 8, 2002
MANAGER GENERAL DISTRIBUTOR GENERAL COUNSEL J. & W. Seligman & Co. Incorporated Seligman Advisors, Inc. Sullivan & Cromwell 100 Park Avenue 100 Park Avenue New York, New York 10017 New York, New York 10017 SUBADVISER (to Seligman Global CUSTODIANS INDEPENDENT AUDITORS Smaller Companies Portfolio) State Street Bank and Trust Company Ernst & Young LLP Henderson Investment JPMorgan Chase Bank Management Limited 3 Finsbury Avenue London EC2M 2PA
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SELIGMAN PORTFOLIOS, INC. ----------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) ----------------------------------------------------------------------------------------------------------------------------- Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below. INDEPENDENT DIRECTORS OTHER DIRECTORSHIPS NUMBER OF HELD BY TERM OF PORTFOLIOS IN DIRECTOR NOT OFFICE AND FUND DISCLOSED NAME, (AGE), LENGTH OF COMPLEX UNDER POSITION(S) HELD TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY PRINCIPAL WITH FUND o SERVED# PAST FIVE YEARS AND OTHER INFORMATION DIRECTOR OCCUPATIONS ----------------------------------------------------------------------------------------------------------------------------- JOHN R. 1995 Dean Emeritus, Fletcher School of Law and Diplomacy 61 None GALVIN(72)2,4 to Date at Tufts University; Director or Trustee, the Seligman Group Director of investment companies+; Chairman Emeritus, American Council on Germany; Governor of the Center for Creative Leadership; Director, Raytheon Co., defense and commercial electronics; National Defense University; and the Institute for Defense Analyses. Formerly, Director, USLIFE Corporation, life insurance; Ambassador, U.S. State Department for negotiations in Bosnia; Distinguished Policy Analyst at Ohio State University and Olin Distinguished Professor of National Security Studies at the United States Military Academy. From June 1987 to June 1992, he was the Supreme Allied Commander, Europe and the Commander-in-Chief, United States European Command. ----------------------------------------------------------------------------------------------------------------------------- ALICE S. 1991 President Emeritus, Sarah Lawrence College; Director or 61 None ILCHMAN(66)3,4 to Date Trustee, the Seligman Group of investment companies+; Director Trustee, the Committee for Economic Development; Chairman, The Rockefeller Foundation, charitable foundation; and Director, Public Broadcasting Service (PBS). Formerly, Trustee, The Markle Foundation, philanthropic organization; and Director, New York Telephone Company; and International Research and Exchange Board, intellectual exchanges. ----------------------------------------------------------------------------------------------------------------------------- FRANK A. 1995 Retired Chairman of the Board and Chief Executive Officer 61 None MCPHERSON(68)3,4 to Date of Kerr-McGee Corporation, diversified energy company; Director Director or Trustee, the Seligman Group of investment companies+; Director, Kimberly-Clark Corporation, consumer products; Conoco Inc., oil exploration and production; Bank of Oklahoma Holding Company; Baptist Medical Center; Oklahoma Chapter of the Nature Conservancy; Oklahoma Medical Research Foundation; National Boys and Girls Clubs of America; and Oklahoma Foundation for Excellence in Education. Formerly, Chairman, Oklahoma City Public Schools Foundation; and Director, Federal Reserve System's Kansas City Reserve Bank, the Oklahoma City Chamber of Commerce, and Member of the Business Roundtable. ----------------------------------------------------------------------------------------------------------------------------- JOHN E. 1988 Retired Chairman and Senior Partner, Sullivan & Cromwell, law 61 None MEROW(72)2,4 to Date firm; Director or Trustee, the Seligman Group of investment Director companies+; Director, Commonwealth Industries, Inc., manufacturers of aluminum sheet products; the Foreign Policy Association; Municipal Art Society of New York; the U.S. Council for International Business; and Vice Chairman, New York- Presbyterian Healthcare System, Inc.; Life Trustee, New York-Presbyterian Hospital; and Member of the American Law Institute and Council on Foreign Relations. ----------------------------------------------------------------------------------------------------------------------------- BETSY S. 1988 Attorney; Director or Trustee, the Seligman Group of investment 61 None MICHEL(59)2,4 to Date companies+; Trustee, The Geraldine R. Dodge Foundation, Director charitable foundation; and World Learning, Inc. Formerly, Chairman of the Board of Trustees of St. George's School (Newport, RI); and Director, the National Association of Independent Schools (Washington, DC). ----------------------------------------------------------------------------------------------------------------------------- -------------------- See footnotes on P-81.
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SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) -------------------------------------------------------------------------------------------------------------------------------- Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below. INDEPENDENT DIRECTORS (continued) OTHER DIRECTORSHIPS NUMBER OF HELD BY TERM OF PORTFOLIOS IN DIRECTOR NOT OFFICE AND FUND DISCLOSED NAME, (AGE), LENGTH OF COMPLEX UNDER POSITION(S) HELD TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY PRINCIPAL WITH FUND o SERVED# PAST FIVE YEARS AND OTHER INFORMATION DIRECTOR OCCUPATIONS -------------------------------------------------------------------------------------------------------------------------------- JAMES C. 1988 Retired Partner, Pitney, Hardin, Kipp & Szuch, law firm; Director 61 None PITNEY (75)3,4 to Date or Trustee, the Seligman Group of investment companies+. Director Formerly, Director, Public Service Enterprise Group, public utility. -------------------------------------------------------------------------------------------------------------------------------- LEROY C. 2000 Chairman and Chief Executive Officer, Q Standards Worldwide, 60 None 2,4 to Date Inc., library of technical standards; Director or Trustee, the RICHIE (60)2,4 Seligman Group of investment companies (except Seligman Cash Director Management Fund, Inc.)+; Director, Kerr-McGee Corporation, diversified energy company; and Infinity, Inc., oil and gas services and exploration; Chairman, Highland Park Michigan Economic Development Corp.; Trustee, New York University Law Center Foundation and Vice Chairman, Detroit Medical Center. Formerly, Chairman and Chief Executive Officer, Capital Coating Technologies, Inc., applied coating technologies;Vice President and General Counsel, Automotive Legal Affairs, Chrysler Corporation. -------------------------------------------------------------------------------------------------------------------------------- JAMES Q. 1991 Director or Trustee, the Seligman Group of investment 61 None RIORDAN (74)3,4 to Date companies+; Director or Trustee, The Houston Exploration Director Company, oil exploration; The Brooklyn Museum, KeySpan Corporation, diversified energy and electric company; and the Committee for Economic Development. Formerly, Co-Chairman of the Policy Council of the Tax Foundation; Director, Tesoro Petroleum Companies, Inc. and Dow Jones & Company, Inc., a business and financial news company; Director and President, Bekaert Corporation, high-grade steel cord, wire and fencing products company; Vice Chairman, Exxon Mobil Corporation, petroleum and petrochemicals company; and Director, Public Broadcasting Service (PBS). -------------------------------------------------------------------------------------------------------------------------------- ROBERT L. 1988 Retired Vice President, Pfizer Inc., pharmaceuticals; Director or 61 None SHAFER (69)3,4 to Date Trustee, the Seligman Group of investment companies+. Formerly, Director Director, USLIFE Corporation, life insurance. -------------------------------------------------------------------------------------------------------------------------------- JAMES N. 1993 Retired Executive Vice President and Chief Operating Officer, 61 None WHITSON (66)2,4 to Date Sammons Enterprises, Inc., a diversified holding company; Director Director or Trustee, the Seligman Group of investment companies+; Director, C-SPAN, cable television, and CommScope, Inc., manufacturer of coaxial cables. -------------------------------------------------------------------------------------------------------------------------------- -------------------- See footnotes on P-81.
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SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) -------------------------------------------------------------------------------------------------------------------------------- Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below. INTERESTED DIRECTORS AND PRINCIPAL OFFICERS OTHER DIRECTORSHIPS NUMBER OF HELD BY TERM OF PORTFOLIOS IN DIRECTOR NOT OFFICE AND FUND DISCLOSED NAME, (AGE), LENGTH OF COMPLEX UNDER POSITION(S) HELD TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY PRINCIPAL WITH FUND o SERVED# PAST FIVE YEARS AND OTHER INFORMATION DIRECTOR OCCUPATIONS ------------------------------------------------------------------------------------------------------------------------------- WILLIAM C. 1988 to Date Chairman, J. & W. Seligman & Co. Incorporated, Chairman 61 None MORRIS (63)*1 and Chief Executive Officer of the Seligman Group of Director, Chairman investment companies+; Chairman, Seligman Advisors, Inc., of the Board and Seligman Services, Inc., and Carbo Ceramics Inc., ceramic Chief Executive proppants for oil and gas industry; and Director, Seligman Officer Data Corp., Kerr-McGee Corporation, diversified energy company. Formerly, Director, Daniel Industries Inc., manufacturer of oil and gas metering equipment. ------------------------------------------------------------------------------------------------------------------------------- BRIAN T. ZINO (49)*1 Dir.: 1993 to Director and President, J. & W. Seligman & Co. 61 None Director Date Incorporated; President of twenty-one investment companies and President Pres.: 1995 in the Seligman Group of investment companies and Director to Date or Trustee of the Seligman Group of investment companies+, Seligman Advisors, Inc., and Seligman Services, Inc. Chairman, Seligman Data Corp.; Member of the Board of Governors of the Investment Company Institute; and Vice Chairman, ICI Mutua Insurance Company. ------------------------------------------------------------------------------------------------------------------------------- IAIN C. CLARK (51) 1994 to Date Chief Investment Officer, Henderson Investment N/A N/A Vice President and Management Limited since April 1992. He has been Portfolio Manager a Director at Henderson International Limited and Senior Portfolio Manager at Henderson plc, respectively, since April 1995. Vice President of Seligman Global Fund Series, Inc. and Co-Portfolio Manager of its Global Smaller Companies Fund. ------------------------------------------------------------------------------------------------------------------------------- DAVID F. COOLEY (38) 2001 to Date Senior Vice President, Investment Officer of J. & W. N/A N/A Vice President and Seligman & Co. Incorporated. Vice President of Seligman Portfolio Manager Global Fund Series, Inc. and Portfolio Manager of its International Growth Fund and Co-Portfolio Manager of its Global Growth Fund. Formerly, Managing Director, Investments, Gratry and Company; Director of Global Growth Equity, National City Investment Management Company; and International Equity Portfolio Manager, SocietyAsset Management. ------------------------------------------------------------------------------------------------------------------------------- NEIL T. EIGEN (59) 1998 to Date Managing Director, J. & W. Seligman & Co. Incorporated; N/A N/A Vice President and Vice President of Seligman Value Fund Series, Inc. and Portfolio Manager Portfolio Manager of its Large-Cap Value Fund and Small-Cap Value Fund. Formerly, Senior Managing Director, Chief Investment Officer and Director of Equity Investing, Bear Stearns Asset Management. ------------------------------------------------------------------------------------------------------------------------------- BEN-AMI 2001 to Date Managing Director, J. & W. Seligman & Co. Incorporated N/A N/A GRADWOHL (43) since January 2000; Vice President and Co-Portfolio Vice President and Manager of Seligman Common Stock Fund, Inc., Co-Portfolio Manager Seligman Income Fund, Inc., Seligman Tax-Aware Fund, Inc. and Tri-Continental Corporation. Formerly, Portfolio Manager, Nicholas-Applegate Capital Management from 1996 to 1999; and Vice President, Research and Quantitative Analysis, Leland O'Brien Rubinstein Associates, Inc. from 1994 to 1996. ------------------------------------------------------------------------------------------------------------------------------- DAVID GUY (43) 2001 to Date Managing Director, J. & W. Seligman & Co. Incorporated N/A N/A Vice President and since January 2000; Vice President and Co-Portfolio Co-Portfolio Manager Manager of Seligman Common Stock Fund, Inc., Seligman Income Fund, Inc., Seligman Tax-Aware Fund, Inc. and Tri-Continental Corporation. Formerly, Portfolio Manager, Systematic Investment Group, Nicholas-Applegate Capital Management from 1997 to 1999; and Vice President, Equity Derivatives Analysis Group, Salomon Brothers, Inc. from 1992 to 1996. ------------------------------------------------------------------------------------------------------------------------------- -------------------- See footnotes on P-81.
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SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) -------------------------------------------------------------------------------------------------------------------------------- Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below. INTERESTED DIRECTORS AND PRINCIPAL OFFICERS continued) OTHER DIRECTORSHIPS NUMBER OF HELD BY TERM OF PORTFOLIOS IN DIRECTOR NOT NAME, (AGE), OFFICE AND FUND DISCLOSED POSITION(S) HELD LENGTH OF COMPLEX UNDER WITH FUND TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY PRINCIPAL SERVED# PAST FIVE YEARS AND OTHER INFORMATION DIRECTOR OCCUPATIONS -------------------------------------------------------------------------------------------------------------------------------- CHRISTOPHER J. From 2002 Vice President, Investment Officer of J. & W. Seligman & Co. N/A N/A MAHONY (38) Incorporated since April 2001. Vice President and Portfolio Vice President and Manager of Seligman Cash Management Fund, Inc., and Portfolio Manager Seligman Investment Grade Fixed Income Fund, Inc.; Vice President of Seligman High Income Fund Series and Portfolio Manager of its U.S. Government Securities Series. Formerly, Senior Portfolio Manager at Fort Washington Investment Advisors, Inc. since 1994; and Portfolio Manager, Neuberger and Berman from 1991 to 1994. -------------------------------------------------------------------------------------------------------------------------------- RICHARD M. From 2002 Vice President, Investment Officer, J. & W. Seligman & Co. N/A N/A PAROWER (36) Incorporated; Vice President of Seligman Global Fund Series, Vice President and Inc. and Co-Portfolio Manager of its Global Technology Fund. Portfolio Manager Formerly, Senior Analyst with Citibank Global Asset Management covering Global IT Services from June 1998 to April 2000; Senior Analyst with Montgomery Asset Management from September 1995 to June 1998; Securities analyst for G.T. Capital Management from June 1993 to September 1995. -------------------------------------------------------------------------------------------------------------------------------- KENDALL C. 2001 to Date Managing Director, J. & W. Seligman & Co. Incorporated N/A N/A PETERSON (45) since 2001. Vice President of Seligman High Income Fund Vice President and Series and Portfolio Manager of its High-Yield Bond Series. Portfolio Manager Formerly, Vice President and Portfolio Manager and Desk Head for High Yield Mutual Funds with Fortis, Inc. since 1999. From 1985 through 1999, served in a variety of capacities with The Prudential Insurance Company of America, the last six years of which he was Vice President and Portfolio Manager for High Yield Mutual Funds. -------------------------------------------------------------------------------------------------------------------------------- FREDERICK J. From 2002 Managing Director, J. & W. Seligman & Co. Incorporated; N/A N/A RUVKUN (44) Vice President and Portfolio Manager of Seligman Frontier Vice President and Fund, Inc.; Vice President of Seligman Global Fund Series, Portfolio Manager Inc. and Co-Portfolio Manager of its Global Smaller Companies Fund. Formerly, Portfolio Manager at Bessemer Trust. -------------------------------------------------------------------------------------------------------------------------------- MARION S. 1998 to Date Managing Director, J. & W. Seligman & Co. Incorporated since N/A N/A SCHULTHEIS (56) May 1998; Vice President and Portfolio Manager of Seligman Vice President and Capital Fund, Inc., and Seligman Growth Fund, Inc.; Vice Portfolio Manager President of Seligman Global Fund Series, Inc. and Portfolio Manager of its Global Growth Fund. Formerly, Managing Director at Chancellor LGT from October 1997 until May 1998; and Senior Portfolio Manager at IDS Advisory Group Inc. from August 1987 until October 1997. -------------------------------------------------------------------------------------------------------------------------------- STEVEN A. 2000 to Date Senior Vice President, J. & W. Seligman & Co. Incorporated; N/A N/A WERBER (37) Vice President of Seligman Global Fund Series, Inc. and Co- Vice President and Portfolio Manager of its Global Technology Fund. Formerly, Portfolio Manager Analyst and Portfolio Manager at Fidelity Investments International since 1996; and Associate at Goldman Sachs International from 1992 to 1996. -------------------------------------------------------------------------------------------------------------------------------- -------------------- See footnotes on P-81.
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SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) -------------------------------------------------------------------------------------------------------------------------------- Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below. INTERESTED DIRECTORS AND PRINCIPAL OFFICERS (continued) OTHER DIRECTORSHIPS NUMBER OF HELD BY TERM OF PORTFOLIOS IN DIRECTOR NOT OFFICE AND FUND DISCLOSED NAME, (AGE), LENGTH OF COMPLEX UNDER POSITION(S) HELD TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY PRINCIPAL WITH FUND o SERVED# PAST FIVE YEARS AND OTHER INFORMATION DIRECTOR OCCUPATIONS -------------------------------------------------------------------------------------------------------------------------------- PAUL H. WICK (39) 1994 to Date Director and Managing Director, J. & W. Seligman & N/A N/A Vice President and Co. Incorporated since November 1997 and January Portfolio Manager 1995, respectively; Vice President and Portfolio Manager, Seligman Communications and Information Fund, Inc. He joined J. & W. Seligman & Co. Incorporated in 1987 as an Associate, Investment Research. -------------------------------------------------------------------------------------------------------------------------------- THOMAS G. 2000 to Date Senior Vice President, Finance, J. & W. Seligman & Co. N/A N/A ROSE (44) Incorporated, Seligman Advisors, Inc., and Seligman Vice President Data Corp.; Vice President, the Seligman Group of investment companies+, Seligman Services, Inc. and Seligman International, Inc. Formerly, Treasurer, the Seligman Group of investment companies and Seligman Data Corp. -------------------------------------------------------------------------------------------------------------------------------- LAWRENCE P. VP: 1992 to Senior Vice President and Treasurer, Investment N/A N/A VOGEL (45) Date Companies, J. & W. Seligman & Co. Incorporated; Vice Vice President and Treas.: 2000 President and Treasurer, the Seligman Group of Treasurer to Date investment companies+; Treasurer, Seligman Data Corp. Formerly, Senior Vice President, Finance, J. & W. Seligman & Co. Incorporated, Seligman Advisors, Inc. and Seligman Data Corp.; Vice President, Seligman Services, Inc. and Treasurer, Seligman International, Inc. and Seligman Henderson Co. -------------------------------------------------------------------------------------------------------------------------------- FRANK J. NASTA (37) 1994 to Date General Counsel, Senior Vice President, Law and N/A N/A Secretary Regulation and Corporate Secretary, J. & W. Seligman & Co. Incorporated; Secretary, the Seligman Group of investment companies+, Seligman Advisors, Inc., Seligman Services, Inc., Seligman International, Inc. and Seligman Data Corp. Formerly, Corporate Secretary, Seligman Henderson Co. -------------------------------------------------------------------------------------------------------------------------------- The Fund's Statement of Additional Information (SAI) includes additional information about Fund directors and is available, without charge, upon request. You may call toll-free (800) 221-2450 in the US or collect (212) 682-7600 outside the US to request a copy of the SAI, to request other information about the Fund, or to make shareholder inquiries. -------------------- o The address for each of the directors and officers is 100 Park Avenue, New York, NY 10017, 8th Floor. # Each Director serves for an indefinite term, until the election and qualification of his successor or until his earlier death, resignation or removal. Each officer is elected annually by the Board of Directors. + The Seligman Group of investment companies consists of twenty-three registered investment companies. * Mr. Morris and Mr. Zino are considered "interested persons" of the Fund, as defined in the Investment Company Act of 1940, as amended, by virtue of their positions with J. & W. Seligman & Co. Incorporated and its affiliates. Member: 1 Executive Committee 2 Audit Committee 3 Director Nominating Committee 4 Board Operations Committee
- P-81 - SELIGMAN ADVISORS, INC. an affiliate of JWS J. & W. SELIGMAN & CO. INCORPORATED ESTABLISHED 1864 100 Park Avenue, New York, NY 10017 www.seligman.com This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of Capital Stock of Seligman Portfolios, Inc., which contains information about the management fees and other costs. Please read the prospectus carefully before investing or sending money. SP2 12/01 Printed on Recycled Paper - P-82 -