N-30D 1 doc1.txt -------------------------------------------------------------------------------- SELIGMAN PORTFOLIOS, INC. Mid-Year Report June 30, 2002 [LOGO] J. & W. SELIGMAN & CO. INCORPORATED ESTABLISHED 1864 -------------------------------------------------------------------------------- SELIGMAN PORTFOLIOS, INC. August 9, 2002 Dear Contract Owner: J. & W. Seligman & Co. Incorporated (Seligman), the Manager of Seligman Portfolios, Inc., is pleased to provide the enclosed report for the six months ended June 30, 2002. Performance and portfolio information, as well as financial statements, are contained in the pages following this letter. While the US economy improved during the first half of the year, the stock market was plagued by uncertainty caused by revelations of fraudulent accounting and irresponsible corporate governance. Bonds fared better than stocks during the period, with higher-quality, lower-risk bonds posting the best results. Like other investors, we at J. & W. Seligman & Co. Incorporated are appalled by the unethical and, in some cases, illegal practices uncovered at some corporations. With a rebound in corporate profitability still uncertain, news of corporate improprieties created a crisis of confidence that sent stocks plunging, though we suspect there may be a certain degree of overreaction in the market's response. We would hope that the corporate executives who engaged in malfeasance are dealt with severely. We are encouraged by and support changes in corporate accounting that will increase the quality and transparency of financial reporting, and by legal and regulatory changes that will engender more responsible corporate governance. These issues are being addressed promptly by Congress, the Securities and Exchange Commission, the New York Stock Exchange, the National Association of Securities Dealers, and other regulatory agencies. Most recently, in late July President Bush signed into law a sweeping accounting and corporate reform package known as the Sarbanes-Oxley Act of 2002. In our view, the financial system benefits when corporations are held to higher standards of conduct. Despite the turmoil in the markets, there was positive macroeconomic news. The Federal Reserve Board expressed optimism about the prospects for economic recovery, leaving interest rates untouched during the first half of 2002. The US economy expanded at a 5.0% annualized rate in the first quarter, though much of that growth was the result of companies rebuilding their inventories. The second quarter's growth, while not as robust, was nonetheless positive. Industrial production has been on the rise for several months running, and high-tech production has also shown some signs of life. Inflation remains benign, and consumers continue to spend at a healthy pace. However, the economic recovery remains fragile. Productivity growth declined in the second quarter, and some economists have scaled back their growth expectations for 2002 and 2003. Looking ahead, we believe the US economy will strengthen moderately, and that corporate profits will slowly improve. The Federal Reserve Board, wanting to support the nascent recovery, is not expected to raise interest rates until 2003, and there is the possibility of an additional rate reduction in 2002. Geopolitical risks remain, but the immediate concern is investor confidence. We believe that the current sense of urgency has prompted sensible reforms, inserting additional safeguards and regulations into the system. 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 C. Morris William C. Morris Chairman J. & W. Seligman & Co. Incorporated SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ DURING THE SIX MONTHS ENDED JUNE 30, 2002
SELIGMAN CAPITAL PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ------------------------------------------------- -------------------------------------------------- Marvell Technology Group* Mettler-Toledo International** Brocade Communications Systems* York International** Rockwell Automation* Nabors Industries** Avery Dennison* Scientific-Atlanta** Univision Communications (Class A)* Intersil (Class A)** IDEC Pharmaceuticals* Elan (ADRs)** Alloy RF Micro Devices** Cephalon* JDS Uniphase** Emulex* Foot Locker** Sealed Air* Micrel** SELIGMAN COMMON STOCK PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ------------------------------------------------- -------------------------------------------------- Lockheed Martin* United Technologies** J.P. Morgan Chase* Fannie Mae** Raytheon* St. Jude Medical** Raymond James Financial* Sears, Roebuck** Immunex* Bank of New York** Conoco* News Corp. (ADRs)** Citigroup Abbot Laboratories** BB&T* Comcast (Class A)** Wyeth* Xilinx** Peabody Energy* AMR** SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES ------------------------------------------------- -------------------------------------------------- Electronic Arts* Convergys** Autodesk Fairchild Semiconductor International (Class A)** Electronic Data Systems Lamar Advertising (Class A)** ESS Technology* Electronics For Imaging** Amdocs Echostar Communications (Class A)** Polycom* Corinthian Colleges** THQ Comcast (Class A)** NetIQ* SunGard Data Systems Cadence Design Systems Lexmark International (Class A) Waters* Sanmina-SCI ---------- See footnotes on page P-8.
1 -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ DURING THE SIX MONTHS ENDED JUNE 30, 2002
SELIGMAN FRONTIER PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------------------- ----------------------------------- Adaptec* Province Healthcare** Enzon* Universal Health Services (Class B) J.D. Edwards* Waste Connections Documentum* Atlantic Coast Airlines Holdings** Select Medical* Trigon Healthcare** Advance Auto Parts* Career Education RARE Hospitality International* LifePoint Hospitals** Big Lots* Brinker International** Cirrus Logic* International Game Technology** Performance Food Group* Foot Locker** SELIGMAN GLOBAL GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------------------- ----------------------------------- Dow Chemical* NIKE (Class B)** Amgen* Foot Locker** Robert Half International* Texas Instruments** ENI* Elan (ADRs)** Coca-Cola* Citigroup News Corp. (ADRs)* Applera-Applied Biosystems Group** BP (ADRs)* Sanofi-Synthelabo** Sony* Philip Morris** Teva Pharmaceutical Industries (ADRs)* Tesco** Caisse Nationale de Crdit Agricole* Vivendi Universal**
---------- See footnotes on page P-8. 2 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** June 30, 2002 SELIGMAN GLOBAL GROWTH PORTFOLIO
PERCENT OF NET ASSETS ------------------------ JUNE 30, DECEMBER 31, ISSUES COST VALUE 2002 2001 ------ ---------- ---------- --------- ------------- COMMON AND PREFERRED STOCKS: Automobiles and Components 3 $ 111,584 $ 113,695 3.10% 3.70% Banks 9 421,205 466,738 12.7 8.4 Capital Goods 3 118,103 114,542 3.1 6.4 Chemicals 3 163,299 161,185 4.4 -- Commercial Services and Supplies 1 67,094 58,250 1.6 1.5 Communications Equipment 3 281,796 149,324 4.1 5.9 Computer and Peripherals 1 49,958 36,000 1 1.3 Consumer Durables and Apparel 1 56,282 52,809 1.4 2 Consumer Staples 5 252,994 276,425 7.5 7.7 Containers and Packaging 1 28,451 35,995 1 -- Diversified Financials 2 56,089 52,616 1.4 6.2 Electronic Equipment and Instruments -- -- -- -- 1.3 Energy 5 234,124 266,193 7.2 0.6 Health Care 13 756,226 668,453 18.2 18.4 Hotels, Restaurants and Leisure 1 90,605 113,980 3.1 1.4 Insurance 3 144,089 110,420 3 4.1 Leisure Equipment and Products -- -- -- -- 0.7 Media 5 229,792 165,318 4.5 3.8 Metals and Mining 1 57,710 55,071 1.5 2.5 Office Electronics 1 21,668 26,455 0.7 -- Paper and Forest Products 1 37,013 47,150 1.3 1.1 Real Estate 1 26,114 22,789 0.6 -- Retailing 1 41,535 45,651 1.2 2.9 Software and Services 4 131,187 104,482 2.8 5.4 Telecommunication Services -- -- -- -- 3.1 Textiles, Apparel and Luxury Goods -- -- -- -- 0.7 Transportation 1 12,834 14,041 0.4 0.7 Utilities 2 105,562 108,648 3 1.5 ------ ---------- ---------- --------- ------------- 74 3,662,582 3,378,956 91.9 96.6 Other Assets Less Liabilities -- 297,201 297,201 8.1 3.4 ------ ---------- ---------- --------- ------------- Net Assets 74 $3,959,783 $3,676,157 100.00% 100.00% ====== ========== ========== ========= =============
-------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES During the Six Months Ended June 30, 2002 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
TEN LARGEST PURCHASES TEN LARGEST SALES ------------------------- ----------------------------------- Adaptec* Province Healthcare** Kobayashi Pharmaceutical* Universal Health Services (Class B) Koa* Waste Connections J.D. Edwards* Campari Group** Enzon* Atlantic Coast Airlines Holdings** MyTravel* Trigon Healthcare (Class A)** Documentum* Career Education Van der Moolen Holding* LifePoint Hospitals** Select Medical* Brinker International** Tokyo Steel Manufacturing International Game Technology**
---------- See footnotes on page P-8. 3 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** June 30, 2002 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
PERCENT OF NET ASSETS ------------------------ JUNE 30, DECEMBER 31, ISSUES COST VALUE 2002 2001 ------ ---------- ---------- --------- ------------- Common Stocks: Automobiles and Components 3 $ 77,221 $ 99,430 1.20% 0.60% Capital Goods 15 561,255 555,811 6.4 6.3 Chemicals 3 191,148 174,225 2.6 2 Commercial Services and Supplies 19 905,631 951,955 11.4 13.5 Communications Equipment 4 190,660 101,982 1.2 0.9 Consumer Durables and Apparel 2 64,953 86,698 0.4 3.8 Consumer Staples 8 354,042 416,638 4.8 4.6 Containers and Packaging -- -- -- -- 0.3 Electronic Equipment and Instruments 7 243,808 194,162 1.5 2.9 Energy 7 501,672 649,871 7.5 7.6 Financials 17 674,228 624,453 7.2 6.5 Health Care Equipment and Supplies 7 264,356 268,401 3.1 2.8 Health Care Providers and Services 13 584,239 594,929 6.9 10.4 Hotels, Restaurants and Leisure 16 606,616 619,111 7.5 5.9 Media 9 431,941 387,793 4.5 2.8 Metals and Mining 2 77,354 79,207 0.9 0.2 Office Electronics 1 33,816 28,929 0.3 -- Pharmaceuticals and Biotechnology 18 618,958 505,889 5.9 6.5 Real Estate -- -- -- -- 0.5 Retailing 15 497,984 517,802 6 4.9 Semiconductor Equipment and Products 10 325,367 230,705 2.7 2.7 Software and Services 16 816,725 721,719 8.4 3.7 Telecommunication Services 3 160,612 137,089 1.6 3.9 Transportation 6 204,555 245,878 2.9 2.9 Utilities 1 41,945 46,854 0.5 0.2 ------ ---------- ---------- --------- ------------- 202 8,429,086 8,239,531 95.4 96.4 Other Assets Less Liabilities -- 401,472 401,472 4.6 3.6 ------ ---------- ---------- --------- ------------- Net Assets 202 $8,830,558 $8,641,003 100.0% 100.0% ====== ========== ========== ========= =============
---------- See footnotes on page P-8. 4 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO LARGEST PORTFOLIO CHANGES+ DURING THE SIX MONTHS ENDED JUNE 30, 2002
TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------- ------------------------- Amdocs Symantec HOYA* Electronics For Imaging** Humax* Toshiba** NetIQ* Samsung Electronics** Flextronics International* Kyocera** Infosys Technologies* Samsung SDI Electronic Data Systems Canon** FANUC* Convergys** ASM International United Microelectronics** Citrix Systems* Lattice Semiconductor**
-------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** June 30, 2002
PERCENT OF NET ASSETS ------------------------ JUNE 30, DECEMBER 31, ISSUES COST VALUE 2002 2001 ------ ----------- ----------- --------- ------------- Common and Preferred Stocks: Application Software 10 $ 2,666,827 $ 2,290,741 14.80% 11.30% Capital Goods 3 568,260 566,112 3.7 1.3 Commercial Services and Supplies 3 241,982 251,323 1.6 -- Communications Equipment 4 919,822 717,819 4.7 7.1 Computers and Peripherals 3 777,615 781,298 5.1 6.2 Consumer Durables and Apparel 5 1,027,592 976,402 6.3 -- Electronic Equipment and Instruments 12 2,193,547 1,867,564 12.1 19.2 Entertainment Software 3 246,781 231,240 1.5 -- Internet Software and Services -- --- -- -- 1.5 IT Consulting and Services 11 3,861,359 2,323,017 15.1 15.4 Materials 1 173,463 177,475 1.1 -- Media 2 377,670 293,361 1.9 -- Office Electronics 1 88,864 104,687 0.7 -- Semiconductor Equipment and Products 12 2,090,170 1,318,245 8.5 13.8 Systems Software 6 2,261,315 1,774,021 11.5 7 Telecommunication Services 2 392,781 397,480 2.6 2.5 ------ ----------- ----------- --------- ------------- 78 17,888,048 14,070,785 91.2 85.3 Other Assets Less Liabilities -- 1,358,965 1,358,965 8.8 14.7 ------ ----------- ----------- --------- ------------- Net Assets 78 $19,247,013 $15,429,750 100.00% 100.00% ====== =========== =========== ========= =============
---------- See footnotes on page P-8. 5 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2002 SELIGMAN HIGH-YIELD BOND PORTFOLIO
TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------------------------------- ----------------------------------------------- Charter Communications Holdings 12-1/8%, 1/15/2012* TDL Infomedia Holdings 0% (15-1/2%), 10/15/2010 Magnum Hunter Resources 9.60%, 3/15/2012* Chesapeake Energy 8-3/8%, 11/1/2008** Six Flags 8-7/8%, 2/1/2010* Allied Waste North America 10%, 8/1/2009** Roundy8-7/8%, 6/15/2012* Charter Communications Holdings 10%, 4/1/2009** CSC Holdings 8-1/8%, 7/15/2009* NBC Acquisition 0% (10-3/4%), 2/15/2009 Westport Resources 8-1/4%, 11/1/2011* Echostar 9-1/8%, 1/15/2009** Encore Acquisition 8-3/8%, 6/15/2012* Adelphia Communications 10-1/4%, 6/15/2011** John Q. Hammons Hotels 8-7/8%, 5/15/2012* Rural Cellular 11-3/8%** Owens Brockway Glass Container 8-7/8%, 2/15/2009* Park Place Entertainment 9-3/8%, 2/15/2007 Trico Marine Services 8-7/8%, 5/15/2012* Host Marriot 9-1/2%, 1/15/2007** SELIGMAN INCOME PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------------------------------- ----------------------------------------------- US Treasury Bonds 5-3/8%, 2/15/2031* NVIDIA 4-3/4%, 10/15/2007** US Treasury Notes 6%, 8/15/2004* Conexant Systems 4%, 2/1/2007** BB&T* United Technologies** Berkley (W.R.) Cypress Semiconductor 4%, 2/1/2005** J.P. Morgan Chase Fannie Mae** US Treasury Notes 4-5/8%, 5/15/2006* LSI Logic 4%, 2/15/2005** Raytheon* General Electric General Dynamics* American International Group** Citigroup Amkor Technology 5%, 3/15/2007** Noble Energy* Chubb** SELIGMAN INTERNATIONAL GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES -------------------------------------------------- ----------------------------------------------- Teva Pharmaceutical Industries (ADRs)* Sanofi-Synthelabo** ENI* Assicurazioni Generali** News Corp. (ADRs)* Nokia** Sony* Vivendi Universal** Caisse Nationale de Crdit Agricole* Bridgestone** Akzo Nobel* Tesco** Woolworths* Deutsche Bank** Commonwealth Bank of Australia* Castorama Dubois Investissement** Bayerische Motoren Werke "BMW"* Westpac Banking** Empresa Brasileira de Aeronautica Embraer (ADRs)*
---------- See footnotes on page P-8. 6 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** JUNE 30, 2002 -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO
PERCENT OF NET ASSETS ------------------------ JUNE 30, DECEMBER 31, ISSUES COST VALUE 2002 2001 ------ ----------- ----------- --------- ------------- Common and Preferred Stocks: Automobiles and Components 3 $ 244,685 $ 251,836 5.70% 5.70% Banks 9 740,274 817,180 18.5 12.8 Capital Goods 2 179,241 150,674 3.4 1.8 Chemicals 2 135,752 134,902 3.1 -- Commercial Services and Supplies -- -- -- -- 2.2 Communications Equipment 1 76,400 72,400 1.6 3.5 Consumer Durables and Apparel 1 95,679 89,776 2 -- Consumer Staples 4 332,933 366,457 8.3 9.9 Containers and Packaging 1 45,596 57,591 1.3 -- Diversified Financials 1 42,966 44,050 1 6.3 Electronic Equipment and Instruments -- -- -- -- 2.3 Energy 5 407,758 456,480 10.3 7 Health Care 7 559,679 562,721 12.7 12.1 Insurance 3 217,126 169,008 3.8 6.8 Leisure Equipment and Products -- -- -- -- 1.1 Media 4 229,745 211,420 4.8 4.3 Metals and Mining 1 108,140 102,546 2.3 3.7 Office Electronics 1 36,510 41,572 1 -- Paper and Forest Products 1 77,111 98,230 2.2 1.7 Real Estate 1 43,666 37,982 0.9 -- Retailing 1 69,223 76,086 1.7 1.2 Semiconductor Equipment and Products 2 94,354 86,882 2 1.3 Software and Services 2 44,268 47,254 1.1 3.5 Telecommunication Services -- -- -- -- 5.3 Textiles and Apparel -- -- -- -- 1.1 Transportation 1 21,390 23,401 0.5 1 Utilities 2 181,615 187,586 4.3 3.5 ------ ----------- ----------- --------- ------------- 55 3,984,111 4,086,034 92.5 98.1 Other Assets Less Liabilities 330,989 330,989 7.5 1.9 ----------- ----------- --------- ------------- NET ASSETS 55 $ 4,3151,00 $4,417,023 100.0% 100.0% ====== =========== =========== ========= =============
---------- See footnotes on page P-8. 7 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIO OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2002 SELIGMAN INVESTMENT GRADE FIXED INCOME PORTFOLIO
LARGEST PURCHASES LARGEST SALES --------------------------------------- -------------------------------------- US Treasury Notes 5%, 8/15/2011 Target 5.40%, 10/1/2008** US Treasury Bonds 5-3/8%, 2/15/2031* Ford Motor 7.45%, 7/16/2031** FHLMC 4-7/8%, 3/15/2007* FNMA 7%, 12/1/2029** Ford Motor 7-3/8%, 10/1/2011* FNMA 7%, 10/1/2020** US Treasury Bonds 7-1/4%, 8/15/2022 United Airlines 7.032%, 10/1/2010** Verizon 6-1/8%, 3/1/2012* Florida Power & Light 6%, 6/1/2008** US Treasury Notes 4-3/4%, 11/15/2008* US Treasury Notes 6%, 8/15/2009** US Treasury Notes 3-3/8%, 3/30/2004* FleetBoston Financial 4-7/8%, 12/1/2006 Coca-Cola Enterprises 5-1/4%, 5/15/2007* PNC Funding 5-3/4%, 8/1/2006 Countrywide Funding 5-1/2%, 2/1/2007* SELIGMAN LARGE-CAP GROWTH PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------------------------- -------------------------------------- Praxair* Philip Morris** American International Group* Texas Instruments Marvell Technology Group* Nokia (ADRs)** Brocade Communications Systems* Siebel Systems** Amgen NIKE (Class B) Pharmacia King Pharmaceuticals** Wyeth* Nintendo (ADRs)** Coca-Cola Medtronic Dow Chemical Delta Air Lines** Lucent Technologies* Sprint PCS Group** SELIGMAN LARGE-CAP VALUE PORTFOLIO LARGEST PURCHASES LARGEST SALES --------------------------------------- -------------------------------------- Juniper Networks* Sprint FON Group** Dynegy Boeing Lucent Technologies* Baxter International AES Philip Morris General Electric* Medtronic International Business Machines Costco Wholesale Bristol-Myers Squibb Goodrich (B.F.) El Paso Transocean Sedco Forex Praxair Allstate SELIGMAN SMALL-CAP VALUE PORTFOLIO TEN LARGEST PURCHASES TEN LARGEST SALES --------------------------------------- -------------------------------------- Enzon* Abercrombie & Fitch (Class A)** American Eagle Outfitters* Westvaco** Protein Design Labs* Valero Energy** Bowater* PartnerRe** Reader's Digest Association* StorageNetworks** Bunge* RenaissanceRe Holdings** Equitable Resources* Sierra Pacific Resources** Agere Systems (Class A) Urban Outfitters Universal Compression Holdings Wet Seal (The) (Class A) Clayton Homes* Cubic ---------- + 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."
8 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) JUNE 30, 2002 -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO
SHARES VALUE ------ ----------- COMMON STOCKS 99.8% AUTOMOBILES AND COMPONENTS 4.1% Gentex* 16,300 $ 447,679 Harley-Davidson 7,500 384,525 ----------- 832,204 ----------- CAPITAL GOODS 7.1% AstroPower* 7,650 150,284 Danaher 3,500 232,225 Fastenal 5,400 208,602 Kennametal 5,800 212,280 Rockwell Automation 23,600 471,528 SPX 1,400 164,500 ----------- 1,439,419 ----------- CHEMICALS 5.4% Ecolab 7,200 332,856 Georgia Gulf 29,100 769,404 ----------- 1,102,260 ----------- COMMERCIAL SERVICES AND SUPPLIES 13.4% Avery Dennison 7,500 470,625 ChoicePoint* 8,533 387,996 Cintas 5,100 252,068 Cross Country* 10,100 381,729 Fiserv* 6,500 238,583 Hotels.com (Class A)* 1,700 71,799 Robert Half International* 14,400 335,520 ServiceMaster 27,400 375,928 Ticketmaster (Class B)* 10,600 198,273 ----------- 2,712,521 ----------- COMMUNICATIONS EQUIPMENT 4.5% Brocade Communications Systems* 18,400 321,632 CIENA* 39,000 163,215 Emulex* 10,000 225,100 Research In Motion* (Canada) 17,200 195,650 ----------- 905,597 ----------- CONSUMER DURABLES AND APPAREL 4.2% Coach* 5,500 $ 301,950 Mattel 10,200 215,016 Mohawk Industries* 5,500 338,415 ----------- 855,381 ----------- CONSUMER STAPLES 0.8% Smithfield Foods* 8,600 159,530 ----------- CONTAINERS AND PACKAGING 3.0% Pactiv* 13,500 321,300 Sealed Air* 7,100 285,917 ----------- 607,217 ----------- ELECTRONIC EQUIPMENT AND INSTRUMENTS 3.8% Diebold 13,100 487,844 Millipore 3,400 108,732 Waters* 6,700 178,890 ----------- 775,466 ----------- ENERGY 0.8% Nabors Industries* 4,700 165,910 ----------- FINANCIALS 2.5% AFLAC 16,100 515,200 ----------- HEALTH CARE EQUIPMENT AND SERVICES 6.6% Andrx* 6,700 180,733 Covance* 1,200 22,500 Laboratory Corp. of America Holdings* 9,000 410,850 Pharmaceutical Product Development* 6,300 165,974 Quest Diagnostics* 4,900 421,645 WebMD* 25,100 141,187 ----------- 1,342,889 ----------- HOTELS, RESTAURANTS AND LEISURE 3.7% Starwood Hotels & Resorts Worldwide 14,100 463,749 ----------- 755,583 ----------- ---------- *Non-income producing security. See Notes to Financial Statements. 9 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO (continued) SHARES VALUE ------ ----------- MEDIA 2.5% Interpublic Group of Companies (The) 5,400 $ 133,704 Regal Entertainment Group (Class A)* 3,000 69,960 Univision Communications (Class A)* 9,600 301,440 ----------- 505,104 ----------- PHARMACEUTICALS AND BIOTECHNOLOGY 12.1% Abgenix* 9,000 88,290 Affymetrix* 2,400 57,708 Biogen* 1,700 70,423 Cephalon* 5,300 239,639 Charles River Laboratories International* 6,700 234,835 Chiron* 3,100 109,570 Human Genome Sciences* 14,900 199,660 IDEC Pharmaceuticals* 6,200 219,759 MedImmune* 8,700 229,636 Myriad Genetics* 10,400 210,392 NPS Pharmaceuticals* 12,200 186,843 OSI Pharmaceuticals* 2,000 48,660 Pharmaceutical Resources 12,600 350,028 SICOR* 11,200 207,760 ----------- 2,453,203 ----------- RETAILING 8.1% Bed Bath & Beyond* 5,800 218,921 Chico's FAS* 7,550 274,216 Fred's 2,100 76,450 Staples* 25,700 506,290 Williams-Sonoma* 18,600 570,276 ----------- 1,646,153 ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS 6.0% Broadcom (Class A)* 9,000 $ 157,815 Cabot Microelectronics* 1,400 60,592 KLA-Tencor* 1,100 48,362 Marvell Technology Group* 18,400 366,068 Novellus Systems* 1,600 54,392 PMC-Sierra* 16,000 148,240 QLogic 9,800 373,331 ----------- 1,208,800 ----------- SOFTWARE AND SERVICES 6.9% Adobe Systems 5,800 165,271 Alloy* 20,700 300,150 CNET Networks* 46,700 93,167 Intuit* 2,400 119,316 Mercury Interactive* 11,800 270,869 Precise Software Solutions* 12,500 120,063 Synopsys* 2,300 126,477 VERITAS Software* 10,800 213,678 ----------- 1,408,991 ----------- TRANSPORTATION 4.3% Expeditors International of Washington 10,400 343,096 C.H. Robinson Worldwide 8,300 279,004 SkyWest 10,300 240,865 ----------- 862,965 ----------- TOTAL INVESTMENTS 99.8% (Cost $21,394,547) 20,254,393 OTHER ASSETS LESS LIABILITIES 0.2% 45,827 ----------- NET ASSETS 100.0% $20,300,220 ===========
---------- *Non-income producing security. See Notes to Financial Statements. 10
SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO ANNUALIZED YIELD ON PURCHASE PRINCIPAL DATE AMOUNT VALUE ----------- ---------- ---------- US GOVERNMENT AND GOVERNMENTAGENCY SECURITIES 57.6% US GOVERNMENT SECURITIES 23.0% US Treasury Bills: 7/5/2002 1.71% $1,000,000 $ 999,812 8/15/2002 1.76 1,000,000 997,831 ---------- Total US Government Securities (Cost $1,997,643) 1,997,643 ---------- US GOVERNMENT AGENCY SECURITIES 34.6% Federal Farm Credit Bank, 7/17/2002 1.73 500,000 499,620 Federal Home Loan Bank, 7/10/2002 1.74 1,000,000 999,570 Federal Home Loan Mortgage, 8/21/2002 1.74 500,000 498,782 Federal National Mortgage Association, 7/2/2002 1.75 1,000,000 999,952 ---------- Total US Government Agency Securities (Cost $2,997,924) 2,997,924 ---------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $4,995,567) 4,995,567 ---------- REPURCHASE AGREEMENT 21.9% (Cost $1,900,000) State Street Bank & Trust, 1.81%, dated 6/28/2002, maturing 7/1/2002, collateralized by: $1,965,000 US Treasury Bills, 9/19/2002, with a fair market value of $1,957,631 1.84% $1,900,000 $1,900,000 ---------- COMMERCIAL PAPER 19.6% AIG Funding, 8/2/2002 1.78 400,000 399,374 American Express Credit, 9/3/2002 1.77 400,000 398,756 General Electric Capital, 8/12/2002 1.76 400,000 399,188 Wells Fargo Financial, 7/25/2002 1.81 500,000 499,403 ---------- TOTAL COMMERCIAL PAPER (Cost $1,696,721) 1,696,721 ---------- TOTAL INVESTMENTS 99.1% (Cost $8,592,288) 8,592,288 OTHER ASSETS LESS LIABILITIES 0.9% 77,776 ---------- NET ASSETS 100.0% $8,670,064 ========== ---------- See Notes to Financial Statements.
11 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO
SHARES VALUE ------ ----------- COMMON STOCKS 99.6% CAPITAL GOODS 14.7% Donaldson 7,300 $ 255,792 General Dynamics 3,000 319,050 General Electric 21,440 622,832 Harsco 6,100 228,750 Illinois Tool Works 3,000 204,900 Lockheed Martin 10,100 701,950 Raytheon 11,600 472,700 ----------- 2,805,974 ----------- CHEMICALS 2.3% Air Products and Chemicals 8,740 441,108 ----------- COMMERCIAL SERVICES AND SUPPLIES 0.5% Herman Miller 4,900 99,446 ----------- COMMUNICATIONS EQUIPMENT 0.6% Cisco Systems* 8,400 117,138 ----------- COMPUTERS AND PERIPHERALS 1.0% International Business Machines 2,590 186,480 ----------- CONSTRUCTION MATERIALS 1.1% Martin Marietta Materials 5,400 210,600 ----------- CONSUMER DURABLES AND APPAREL 1.0% Callaway Golf 12,200 193,248 ----------- CONSUMER STAPLES 8.2% Coca-Cola 4,820 269,920 Gillette 5,000 169,350 Kraft Foods (Class A) 10,190 417,280 Oakley* 15,000 261,000 Philip Morris 4,520 197,434 Procter & Gamble 2,700 241,110 ----------- 1,556,094 ----------- ELECTRONIC EQUIPMENT AND INSTRUMENTS 0.5% Amphenol (Class A)* 2,500 90,000 ----------- ENERGY 10.2% Anadarko Petroleum 4,200 $ 207,060 Conoco 13,800 383,640 Exxon Mobil 17,070 698,504 Nabors Industries* 6,300 222,390 Noble Energy 5,900 212,695 Sunoco 6,200 220,906 ----------- 1,945,195 ----------- FINANCIALS 19.5% American International Group 5,670 386,864 BB&T 9,100 351,260 Chubb 6,930 490,644 Citigroup 21,390 828,863 J.P. Morgan Chase 16,200 549,504 Raymond James Financial 12,900 367,263 St. Paul Companies 4,600 179,032 State Street Bank & Trust 3,400 151,980 XL Capital (Class A) (Bermuda) 4,930 417,571 ----------- 3,722,981 ----------- HEALTH CARE 11.0% AdvancePCS* 3,700 88,596 Allergan 1,560 104,130 Baxter International 10,860 482,727 Immunex* 15,400 343,959 Johnson & Johnson 7,520 392,995 Pfizer 11,710 409,850 Wyeth 5,400 276,480 ----------- 2,098,737 ----------- HOTELS, RESTAURANTS AND LEISURE 2.5% Outback Steakhouse* 6,800 238,680 Starwood Hotels & Resorts Worldwide 7,220 237,466 ----------- 476,146 ----------- MEDIA 5.0% AOL Time Warner* 7,220 106,206 Clear Channel Communications* 5,900 188,918 Knight Ridder 3,600 226,620 Metro-Goldwyn-Mayer* 7,100 83,070 Viacom (Class B)* 7,870 349,192 ----------- 954,006 ----------- ---------- *Non-income producing security. See Notes to Financial Statements. 12 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) SHARES VALUE ------ ----------- METALS AND MINING 1.8% Peabody Energy 11,900 $ 336,770 ----------- PAPER AND FOREST PRODUCTS 3.9% Bowater 5,320 289,248 Weyerhaeuser 7,210 460,359 ----------- 749,607 ----------- RETAILING 5.5% American Eagle Outfitters* 9,200 194,442 May Department Stores 9,240 304,273 Wal-Mart Stores 9,990 549,550 ----------- 1,048,265 ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS 2.4% Applied Materials* 5,000 95,450 Intel 9,330 170,506 LSI Logic* 10,700 93,625 Maxim Integrated Products* 2,300 88,147 ----------- 447,728 ----------- SOFTWARE AND SERVICES 2.8% Microsoft* 9,960 $ 544,115 ----------- TELECOMMUNICATION SERVICES 2.0% SBC Communications 12,598 384,239 ----------- UTILITIES 3.1% Dominion Resources 5,400 357,480 Southern 8,500 232,900 ----------- 590,380 ----------- TOTAL INVESTMENTS 99.6% (Cost $19,739,456) 18,998,257 OTHER ASSETS LESS LIABILITIES 0.4% 76,899 ----------- NET ASSETS 100.0% $19,075,156 ===========
-------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO COMMON STOCKS 89.8%
SHARES VALUE ------------ ----------- AEROSPACE AND DEFENSE -- 2.2% General Dynamics* 6,100 $ 648,735 L-3 Communications Holdings* 10,200 550,800 Lockheed Martin 10,300 715,850 ----------- 1,915,385 ------------ APPLICATION SOFTWARE -- 19.1% Autodesk 227,400 3,014,187 Cadence Design Systems* 174,400 2,811,328 Cognos* 20,500 455,100 J.D. Edwards* 41,000 499,995 Mentor Graphics* 30,500 433,862 NetIQ* 49,700 1,123,220 Printcafe Software* 10,000 50,300 Rational Software* 51,400 421,737 Synopsys* 130,976 $ 7,202,370 Verisity* 22,000 381,370 ----------- 16,393,469 ------------ CAPITAL GOODS -- 0.8% Varian* 20,500 676,397 ----------- COMMERCIAL SERVICES AND SUPPLIES -- 1.4% Career Education* 4,100 184,480 Education Management* 6,300 256,536 First Data 13,400 498,480 Hewitt Associates (Class A)* 4,200 97,860 Ticketmaster (Class B)* 10,700 200,143 ----------- 1,237,499 ------------ COMMUNICATIONS EQUIPMENT -- 2.4% Cisco Systems* 103,800 1,447,491 Polycom* 51,500 616,712 ----------- 2,064,203 ------------
13 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued) SHARES VALUE ------------ -----------
SHARES VALUE ------------ ----------- COMPUTERS AND PERIPHERALS -- 5.9% Avocent* 8,700 $ 138,722 Itron* 800 20,956 Lexmark International (Class A)* 89,700 4,879,680 ----------- 5,039,358 ------------ ELECTRONIC EQUIPMENT AND INSTRUMENTS -- 5.3% Amphenol (Class A)* 25,700 925,200 Celestica* 5,700 129,447 Flextronics International* (Singapore) 24,200 172,425 Millipore* 20,500 655,590 Orbotech* (Israel) 59,400 1,348,974 Sanmina-SCI* 41,100 259,136 Waters* 39,000 1,041,300 ----------- 4,532,072 ------------ ENTERTAINMENT SOFTWARE -- 7.2% Activision* 30,600 889,083 Electronic Arts* 35,900 2,371,195 Take-Two Interactive Software* 21,000 432,180 THQ* 81,900 2,442,668 ----------- 6,135,126 ------------ HEALTH CARE EQUIPMENT AND SUPPLIES -- 1.0% Apogent Technologies* 20,800 427,856 CTI Molecular Imaging* 7,200 165,132 STERIS* 14,500 277,095 ----------- 870,083 ------------ IT CONSULTING AND SERVICES -- 15.2% Accenture (Class A) 40,800 775,200 Amdocs* 166,000 1,253,300 CSG Systems International* 102,500 1,962,363 Electronic Data Systems 72,200 2,682,230 KPMG Consulting* 25,600 380,288 Sabre Holdings (Class A)* 61,600 2,205,280 SunGard Data Systems* 143,400 3,797,232 ----------- 13,055,893 ------------ MEDIA -- 3.6% Clear Channel Communications* 82,000 2,625,640 Pixar* 10,200 452,013 ----------- 3,077,653 ------------ PHARMACEUTICALS AND BIOTECHNOLOGY -- 1.3% Affymetrix* 30,800 shs. $ 740,586 Charles River Laboratories International* 10,400 364,520 ----------- 1,105,106 ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS -- 7.5% 47,000 456,840 Advanced Micro Devices* 186,600 1,161,585 Amkor Technology* 40,700 255,189 Atmel* 20,600 500,580 Electro Scientific Industries* 72,000 1,261,800 ESS Technology* 30,800 754,138 FEI* 40,900 824,953 Integrated Circuit Systems* 30,800 658,350 Intersil (Class A)* 36,800 325,864 Microtune* 20,600 212,077 ----------- O2Micro International* 6,411,376 ------------ SYSTEMS SOFTWARE -- 16.9% 81,900 1,359,540 BMC Software* 62,300 375,046 Citrix Systems* 143,500 2,280,215 Computer Associates International 89,000 4,862,070 Microsoft* 171,900 5,646,915 ----------- Symantec* 14,523,786 ------------ TOTAL COMMON STOCKS (Cost $100,540,197) 77,037,406 REPURCHASE AGREEMENT -- 9.8% (Cost $8,400,000) State Street Bank & Trust, 1.81%, dated 6/28/2002, maturing 7/1/2002, collateralized by: $8,685,000 US Treasury Bills, 9/19/2002, with a fair market value of $8,652,431 $ 8,400,000 8,400,000 --------- TOTAL INVESTMENTS -- 99.6% (Cost $108,940,197) 85,437,406 OTHER ASSETS LESS LIABILITIES -- 0.4% 312,686 ----------- NET ASSETS -- 100.0% $85,750,092 =========== ---------- *Non-income producing security. See Notes to Financial Statements.
14 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO
SHARES VALUE ------------ -------- COMMON STOCKS -- 96.7% AUTOMOBILES AND COMPONENTS -- 1.2% American Axle & Manufacturing Holdings* 2,100 $ 62,454 Tower Automotive* 4,300 59,985 -------- 122,439 ------------ CAPITAL GOODS -- 1.9% Aeroflex* 8,700 60,378 DRS Technologies* 2,300 98,325 EDO 1,600 45,600 -------- 204,303 ------------ CHEMICALS -- 1.4% OM Group 2,400 148,800 -------- COMMERCIAL SERVICES AND SUPPLIES -- 13.3% Career Education* 4,700 211,477 Corinthian Colleges* 5,020 170,253 Corporate Executive Board (The)* 4,000 136,980 CoStar Group* 2,860 57,415 DeVry* 1,500 34,260 Education Management* 1,400 57,008 Hewitt Associates (Class A)* 600 13,980 Iron Mountain* 7,500 231,375 Medical Staffing Network Holdings* 2,200 53,900 Resources Connection* 5,150 139,024 Waste Connections* 6,750 210,904 Watson Wyatt Holdings (Class A)* 3,300 79,926 -------- 1,396,502 ------------ COMMUNICATIONS EQUIPMENT -- 2.0% Adaptec* 12,020 95,499 Microtune* 7,000 61,985 Powerwave Technologies* 5,900 54,014 -------- 211,498 ------------ CONSUMER STAPLES -- 3.8% Duane Reade* 5,100 173,655 Oakley* 7,050 122,670 Performance Food Group* 2,965 100,380 -------- 396,705 ------------ ELECTRONIC EQUIPMENT AND INSTRUMENTS -- 0.8% Cognex* 3,000 $ 60,090 Plexus* 1,570 28,425 -------- 88,515 ------------ ENERGY -- 13.1% Chesapeake Energy 12,900 92,880 National 4,400 92,620 PattersonEnergy* 6,800 191,964 Pioneer Natural Resources* 12,800 333,440 Smith International* 1,855 126,492 Spinnaker Exploration* 5,150 185,503 XTO Energy 17,300 356,380 -------- 1,379,279 ------------ FINANCIALS -- 7.4% Affiliated Managers Group* 1,800 110,700 American Capital Strategies 6,700 184,015 Arch Capital Group* 2,100 59,000 Brown & Brown 2,300 72,450 East West Bancorp 2,100 72,482 Gallagher (Arthur J.) 1,700 58,905 Gladstone Capital 3,600 64,962 New York Community Bancorp 2,100 56,017 UCBH Holdings 2,600 99,034 -------- 777,565 ------------ HEALTH CARE EQUIPMENT AND SUPPLIES -- 1.8% Integra LifeSciences* 3,400 73,933 SonoSite* 3,700 53,410 Thoratec* 6,400 57,440 -------- 184,783 ------------ HEALTH CARE PROVIDERS AND SERVICES -- 7.1% Alliance Imaging* 7,500 101,250 Apria Healthcare Group* 5,170 115,808 Community Health Systems* 4,510 120,868 Health Net* 800 21,416 Priority Healthcare (Class B)* 5,100 119,773 Schein (Henry)* 1,500 66,743 Select Medical* 7,600 119,016 Universal Health Services (Class B)* 1,600 78,400 -------- 743,274 ------------
15 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE ------------ -------- HOTELS, RESTAURANTS AND LEISURE -- 5.1% Alliance Gaming* 3,800 $ 47,405 Ameristar Casinos* 2,600 75,543 Cheesecake Factory (The)* 2,600 92,235 Four Seasons Hotels (Canada) 600 28,140 RARE Hospitality International* 4,200 113,085 Sonic* 200 6,281 Station Casinos* 10,000 178,500 -------- 541,189 -------- MEDIA -- 1.6% Cox Radio (Class A)* 6,900 166,290 -------- OFFICE ELECTRONICS -- 0.5% Zebra Technologies (Class A)* 1,200 57,858 -------- PHARMACEUTICALS AND BIOTECHNOLOGY -- 10.2% Alexion Pharmaceuticals* 3,900 59,065 ArQule* 4,500 29,678 Cell Genesys* 4,300 59,189 Charles River Laboratories International* 1,700 59,585 CuraGen* 3,900 21,977 CV Therapeutics* 3,100 57,737 Endo Pharmaceuticals Holdings* 6,300 44,006 Enzon* 4,040 101,444 Eon Labs* 2,300 40,906 First Horizon Pharmaceutical* 2,100 43,270 Isis Pharmaceuticals* 6,900 64,791 Medarex* 7,500 55,838 Medicis Pharmaceutical (Class A)* 2,300 98,348 OSI Pharmaceuticals* 1,400 34,062 SangStat Medical* 4,000 91,940 Serologicals* 2,700 49,396 SICOR* 5,330 98,872 Transkaryotic Therapies* 1,885 67,945 -------- 1,078,049 -------- RETAILING -- 7.7% Advance Auto Parts* 1,880 $102,479 Big Lots* 6,385 125,657 Charming Shoppes* 7,000 60,480 Christopher & Banks* 3,000 126,825 Fred's 800 29,124 Hollywood Entertainment* 3,100 64,154 Hughes Supply 1,600 71,840 J. Jill Group* 500 18,940 MSC Industrial Direct (Class A) 6,000 117,000 NetFlix* 400 5,598 PETCO Animal Supplies* 700 17,433 Wet Seal (The) (Class A)* 3,000 72,990 -------- 812,520 -------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS -- 4.6% Amkor Technology* 5,800 36,105 ANADIGICS* 4,500 36,900 ATMI* 1,400 31,290 Cirrus Logic* 7,500 55,425 Credence Systems* 3,000 53,295 Exar* 4,600 90,689 FEI* 3,100 75,903 MKS Instruments* 1,700 33,992 Silicon Image* 7,100 43,310 Vitesse Semiconductor* 10,100 31,260 -------- 488,169 -------- SOFTWARE AND SERVICES -- 10.7% Activision* 6,950 201,932 Actuate* 7,100 31,914 Acxiom* 5,400 94,473 Agile Software* 11,810 86,863 CACI International (Class A)* 2,000 76,200 Documentum* 7,050 85,975 J.D. Edwards* 9,995 121,889 Informatica* 8,000 56,680 Manugistics Group* 6,430 39,287 NetIQ* 3,800 85,880 THQ* 8,025 239,346 -------- 1,120,439 --------
16 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
SHARES VALUE ------------ -------- TELECOMMUNICATION SERVICES -- 0.9% West* 4,100 $ 90,138 -------- TRANSPORTATION -- 1.6% JetBlue Airways* 1,800 81,963 SkyWest 3,900 91,201 -------- 173,164 -------- TOTAL COMMON STOCKS (Cost $10,063,568) 10,181,479 ------------ REPURCHASE AGREEMENT -- 4.7% (Cost $490,000) $ 490,000 $490,000 -------- TOTAL INVESTMENTS -- 101.4% (Cost $10,553,568) 10,671,479 OTHER ASSETS LESS LIABILITIES -- (1.4)% (145,494) ------------ NET ASSETS -- 100.0% $10,525,985 ============
-------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS -- 91.6% AUSTRALIA -- 4.5% Commonwealth Bank of Australia* (Banks) 3,300 $ 61,186 News Corp. (ADRs) (Media) 2,000 45,860 Woolworths (Consumer Staples) 7,800 57,752 ---------- 164,798 ---------- AUSTRIA -- 1.0% Mayr-Melnhof Karton (Containers and Packaging) 500 35,995 ---------- CANADA -- 1.5% Barrick Gold (Metals and Mining) 2,900 55,071 ---------- FINLAND -- 2.4% Nokia (ADRs) (Communications Equipment) 2,800 40,544 UPM-Kymmene (Paper and Forest Products) 1,200 47,150 ---------- 87,694 ---------- FRANCE -- 5.2% Aventis (Health Care) 950 $ 67,191 Caisse Nationale de Cr dit Agricole (Banks) 2,750 60,993 Carrefour* (Consumer Staples) 900 48,617 Dassault Systemes (Software and Services) 300 13,677 ---------- 190,478 ---------- GERMANY -- 5.5% Allianz (Insurance) 250 50,384 Bayerische Motoren Werke "BMW" (Automobiles and Components) 350 14,183 Deutsche Bank* (Banks) 800 55,608 E.ON (Utilities) 1,200 69,495 SAP (Software and Services) 150 14,675 ---------- 204,345 ---------- HONG KONG -- 2.6% CNOOC (Energy) 36,500 48,902 Hutchison Whampoa (Capital Goods) 3,100 23,151 Sun Hung Kai Properties (Real Estate) 3,000 22,789 ---------- 94,842 ----------
17 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ---------- IRELAND -- 1.4% Bank of Ireland (Banks) 4,048 $ 50,318 ---------- ISRAEL -- 1.8% Teva Pharmaceutical Industries (ADRs) (Health Care) 1,000 66,780 ---------- ITALY -- 2.2% ENI (Energy) 5,150 81,733 ---------- JAPAN -- 8.5% Canon (Office Electronics) 700 26,455 East Japan Railway (Transportation) 3 14,041 Hankyu Department Stores (Retailing) 6,000 45,651 Honda Motor (Automobiles and Components) 1,800 72,982 Nomura Holdings (Diversified Financials) 2,000 29,366 Sony (Consumer Durables and Apparel) 1,000 52,809 Takeda Chemical Industries (Health Care) 1,000 43,883 Toyota Motor (Automobiles and Components) 1,000 26,530 ---------- 311,717 ---------- MEXICO -- 1.0% Tubos de Acero de M xico "TAMSA" (ADRs) (Energy) 4,200 38,640 ---------- NETHERLANDS -- 4.2% Akzo Nobel* (Chemicals) 1,100 47,808 ASM International* (Semiconductor Equipment and Products) 1,400 24,150 Reed Elsevier* (Media) 3,200 43,531 Unilever (ADRs) (Consumer Staples) 600 38,880 ---------- 154,369 ---------- RUSSIA -- 0.8% Surgutneftegaz (ADRs)* (Energy) 1,600 31,280 ---------- SOUTH KOREA -- 0.7% Samsung Electronics (Semiconductor Equipment and Products) 90 24,614 ---------- SPAIN -- 2.8% Banco Bilbao Vizcaya Argentaria (Banks) 4,950 $ 55,870 Banco Popular Espa ol (Banks) 1,075 47,442 ---------- 103,312 ---------- SWITZERLAND -- 5.4% Credit Suisse Group (Banks) 800 25,344 Novartis (Health Care) 1,400 61,435 Serono (Health Care) 60 39,464 Swiss Re (Insurance) 500 48,776 Syngenta (Chemicals) 400 23,989 ---------- 199,008 ---------- UNITED KINGDOM -- 9.6% Barclays Bank (Banks) 4,000 33,664 BP (ADRs) (Energy) 1,300 65,637 British Sky Broadcasting (Media) 1,300 12,467 Centrica (Utilities) 12,650 39,152 CGNU (Insurance) 1,400 11,260 Diageo (Consumer Staples) 4,925 63,976 GlaxoSmithKline* (Health Care) 679 14,680 GlaxoSmithKline (ADRs) (Health Care) 800 34,512 Royal Bank of Scotland Group (Banks) 2,691 76,313 ---------- 351,661 ---------- UNITED STATES -- 30.5% Amgen* (Health Care) 1,300 54,451 AOL Time Warner* (Media) 3,500 51,485 Boeing (Capital Goods) 700 31,500 CIENA* (Communications Equipment) 6,000 25,110 Cisco Systems* (Communications Equipment) 6,000 83,670 Citigroup (Diversified Financials) 600 23,250 CNET Networks* (Software and Services) 5,300 10,574 Coca-Cola (Consumer Staples) 1,200 67,200 Dow Chemical* (Chemicals) 2,600 89,388 Hilton Hotels (Hotels, Restaurants and Leisure) 8,200 113,980 Honeywell International (Capital Goods) 1,700 59,891
18 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED STATES (continued) Intel (Semiconductor Equipment and Products) 3,500 $ 63,963 International Business Machines (Computers and Peripherals) 500 36,000 Johnson & Johnson (Health Care) 800 41,808 Lilly (Eli) (Health Care) 1,000 56,400 MedImmune* (Health Care) 2,000 52,790 Medtronic (Health Care) 1,600 68,560 Microsoft* (Software and Services) 1,200 65,556 Pfizer (Health Care) 1,900 66,500 Robert Half International* (Commercial Services and Supplies) 2,500 58,250 ---------- 1,120,326 ---------- Total Common Stocks (Cost $3,649,235) 3,366,981 ---------- PREFERRED STOCKS -- 0.3% (Cost $13,347) AUSTRALIA -- 0.3% News Corp. (Media) 2,600 $ 11,975 ---------- Total Investments -- 91.9% (Cost $3,662,582) 3,378,956 Other Assets Less Liabilities -- 8.1% 297,201 ---------- Net Assets -- 100.0% $3,676,157 ==========
-------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS - 95.4% AUSTRALIA - 1.4% Billabong International (Media) 8,670 $ 43,740 Foodland Associated (Consumer Staples) 4,540 48,313 MIA Group (Health Care Providers and Services) 56,817 29,112 ---------- 121,165 ---------- AUSTRIA - 0.6% Telekom Austria* (Telecommunication Services) 6,000 48,026 ---------- BELGIUM - 0.8% Omega Pharma (Health Care Equipment and Supplies) 1,572 70,274 ---------- CANADA - 0.7% Dofasco* (Metals and Mining) 550 11,143 EXFO Electro-Optical Engineering* (Electronic Equipment and Instruments) 450 1,019 CANADA (continued) Four Seasons Hotels (Hotels, Restaurants and Leisure) 300 $ 14,070 Sierra Wireless* (Communications Equipment) 450 1,511 SNC-Lavalin Group (Capital Goods) 900 20,741 Sun Life Financial Services* (Financials) 605 13,114 ---------- 61,598 ---------- DENMARK - 0.7% Group 4 Falck* (Commercial Services and Supplies) 1,800 62,111 ---------- FINLAND - 0.9% Instrumentarium (Health Care Equipment and Supplies) 586 14,759 Kone (Capital Goods) 2,160 63,877 ---------- 78,636 ---------- FRANCE - 3.8% Alten* (Software and Services) 4,881 52,926
19 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ---------- FRANCE (continued) Carbone Lorraine (Capital Goods) 1,371 $ 42,706 Elior (Hotels, Restaurants and Leisure) 7,000 56,789 Financiere Marc de Lacharriere Fimalac* (Consumer Durables and Apparel) 1,073 49,184 M didep* (Health Care Providers and Services) 2,487 61,044 Pinguely-Haulotte (Capital Goods) 4,950 39,719 Transiciel (Software and Services) 1,480 26,333 ---------- 328,701 ---------- GERMANY - 3.3% Aareal Bank* (Financials) 7 112 BERU (Automobiles and Components) 827 43,369 Celanese (Chemicals) 1,518 35,329 FJA (Electronic Equipment and Instruments) 1,131 37,906 Fraport (Transportation) 2,000 46,725 GfK (Commercial Services and Supplies) 2,480 46,082 Mediclin (Health Care Providers and Services) 3,206 11,662 Medion (Retailing) 1,500 54,709 Senator Entertainment* (Media) 90 113 Techem* (Commercial Services and Supplies) 411 5,348 ---------- 281,355 ---------- HONG KONG - 2.0% Caf de Coral Holdings (Hotels, Restaurants and Leisure) 44,000 34,129 China Insurance International Holdings (Financials) 72,000 34,616 Convenience Retail Asia* (Consumer Staples) 64,000 23,796 Giordano International (Retailing) 68,000 41,848 TechTronic Industries (Consumer Durables and Apparel) 44,000 37,514 ---------- 171,903 ---------- IRELAND - 0.9% Depfa Bank (Financials) 7 $ 386 Jurys Doyle Hotel Group (Hotels, Restaurants and Leisure) 5,000 50,273 Ryanair Holdings* (Transportation) 4,675 28,802 ---------- 79,461 ---------- ITALY - 2.0% Amplifon (Health Care Equipment and Supplies) 2,600 61,024 Ferretti (Capital Goods) 19,171 67,465 Italgas* (Utilities) 4,225 46,854 ---------- 175,343 ---------- JAPAN - 7.5% Asatsu-DK (Media) 3,100 67,501 FamilyMart (Consumer Staples) 1,500 36,291 Koa (Electronic Equipment and Instruments) 7,400 63,588 Kobayashi Pharmaceutical (Health Care Providers and Services) 2,100 84,971 KOKUSAI Securities (Financials) 14,000 81,175 Konami Sports (Commercial Services and Supplies) 2,400 64,272 Moshi Moshi Hotline (Media) 500 47,303 OBIC (Software and Services) 300 65,073 Taiyo Ink Manufacturing (Chemicals) 1,900 70,696 Tokyo Steel Manufacturing (Metals and Mining) 18,500 68,064 ---------- 648,934 ---------- NETHERLANDS - 1.7% New Skies Satellites* (Telecommunication Services) 9,500 47,291 United Services Group (Commercial Services and Supplies) 2,678 53,061 Van der Moolen Holding (Financials) 2,222 46,873 ---------- 147,225 ----------
20 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ---------- SINGAPORE - 0.3% Venture Manufacturing (Electronic Equipment and Instruments) 3,200 $ 25,546 ---------- SOUTH KOREA - 0.7% Intelligent Digital Integrated Securities (Electronic Equipment and Instruments) 1,706 24,392 Lotte Confectionary (Consumer Staples) 70 37,997 ---------- 62,389 ---------- SPAIN - 3.9% Actividades de Construcci n y Servicios (Capital Goods) 1,850 59,451 Aldeasa (Retailing) 3,100 49,627 Aurea Concesiones de Infraestructuras del Estado (Transportation) 2,039 46,731 Bar n de Ley* (Consumer Staples) 2,900 84,560 Compa ia de Distribuci n Integral Logista (Media) 2,900 53,314 Metrovacesa (Financials) 1,947 40,247 ---------- 333,930 ---------- SWITZERLAND - 1.8% Kaba Holding (Capital Goods) 2 429 Schindler Holding (Capital Goods) 200 36,205 Swisslog Holding (Capital Goods) 2,200 29,574 Swisslog Holding (Warrants) (Capital Goods) 2,200 295 Tecan Group (Health Care Equipment and Supplies) 900 35,541 Unilabs (Health Care Providers and Services) 1,928 51,706 ---------- 153,750 ---------- UNITED KINGDOM - 7.5% AMEC (Capital Goods) 8,000 51,045 Ashtead Group (Financials) 71,600 47,148 Capita Group (Commercial Services and Supplies) 9,000 42,812 Eidos* (Software and Services) 15,000 29,273 Enterprise Inns (Hotels, Restaurants and Leisure) 8,050 $ 63,208 Fitness First* (Hotels, Restaurants and Leisure) 6,000 32,749 William Hill* (Hotels, Restaurants and Leisure) 2,509 10,137 Hit Entertainment (Media) 11,000 45,072 Informa Group (Media) 11,900 37,829 Interserve (Capital Goods) 7,100 48,875 Marlborough Stirling (Commercial Services and Supplies) 23,000 37,637 MyTravel (Hotels, Restaurants and Leisure) 20,300 47,586 National Express Group (Transportation) 5,100 45,099 PizzaExpress (Hotels, Restaurants and Leisure) 4,220 29,918 Sanctuary Group (Media) 18,170 13,391 J.D. Wetherspoon (Hotels, Restaurants and Leisure) 10,000 47,569 Xansa (Software and Services) 12,476 19,782 ---------- 649,130 ---------- UNITED STATES - 54.9% Activision* (Software and Services) 3,200 92,976 Actuate* (Software and Services) 3,300 14,834 Acxiom* (Software and Services) 2,600 45,487 Adaptec* (Communications Equipment) 5,630 44,730 Advance Auto Parts* (Retailing) 880 47,969 Aeroflex* (Capital Goods) 4,100 28,454 Affiliated Managers Group* (Financials) 700 43,050 Agile Software* (Software and Services) 5,605 41,225 Alexion Pharmaceuticals* (Pharmaceuticals and Biotechnology) 1,800 27,261 Alliance Gaming* (Hotels, Restaurants and Leisure) 1,600 19,960
21 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED STATES (continued) Alliance Imaging* (Health Care Providers and Services) 3,500 $ 47,250 American Axle & Manufacturing Holdings* (Automobiles and Components) 900 26,766 American Capital Strategies (Financials) 3,200 87,888 Ameristar Casinos* (Hotels, Restaurants and Leisure) 1,100 31,960 Amkor Technology* (Semiconductor Equipment and Products) 2,800 17,430 ANADIGICS* (Semiconductor Equipment and Products) 2,100 17,220 Apria Healthcare Group* (Health Care Providers and Services) 2,510 56,224 Arch Capital Group* (Financials) 1,000 28,095 ArQule* (Pharmaceuticals and Biotechnology) 2,100 13,850 ATMI* (Semiconductor Equipment and Products) 700 15,645 Big Lots* (Retailing) 2,995 58,942 Brown & Brown (Financials) 1,100 34,650 CACI International (Class A)* (Software and Services) 1,000 38,100 Career Education* (Commercial Services and Supplies) 2,100 94,489 Cell Genesys* (Pharmaceuticals and Biotechnology) 2,000 27,530 Charles River Laboratories International* (Pharmaceuticals and Biotechnology) 800 28,040 Charming Shoppes* (Retailing) 3,100 26,784 Cheesecake Factory (The)* (Hotels Restaurants and Leisure) 1,200 42,570 Chesapeake Energy (Energy) 6,250 45,000 Christopher & Banks* (Retailing) 1,400 59,185 Cirrus Logic* (Semiconductor Equipment and Products) 3,600 26,604 Cognex* (Electronic Equipment and Instruments) 1,400 28,042 Community Health Systems* (Health Care Providers and Services) 2,120 56,816 Corinthian Colleges* (Commercial Services and Supplies) 2,350 $ 79,700 Corporate Executive Board (The)* (Commercial Services and Supplies) 1,800 61,641 CoStar Group* (Commercial Services and Supplies) 1,300 26,098 Cox Radio (Class A)* (Media) 3,300 79,530 Credence Systems* (Semiconductor Equipment and Products) 1,400 24,871 CuraGen* (Pharmaceuticals and Biotechnology) 1,900 10,706 CV Therapeutics* (Pharmaceuticals and Biotechnology) 1,500 27,938 DeVry* (Commercial Services and Supplies) 700 15,988 Documentum* (Software and Services) 3,270 39,878 DRS Technologies* (Capital Goods) 1,100 47,025 Duane Reade* (Consumer Staples) 2,400 81,720 East West Bancorp (Financials) 1,000 34,515 EDO (Capital Goods) 700 19,950 Education Management* (Commercial Services and Supplies) 600 24,432 J.D. Edwards* (Software and Services) 4,750 57,926 Endo Pharmaceuticals Holdings* (Pharmaceuticals and Biotechnology) 2,900 20,256 Enzon* (Pharmaceuticals and Biotechnology) 1,895 47,583 Eon Labs* (Pharmaceuticals and Biotechnology) 1,100 19,564 Exar* (Semiconductor Equipment and Products) 2,200 43,373 FEI* (Semiconductor Equipment and Products) 1,400 34,279 First Horizon Pharmaceutical* (Pharmaceuticals and Biotechnology) 1,000 20,605
---------- * Non-income producing security. See Notes to Financial Statements. 22 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED STATES (continued) Fred's (Retailing) 400 $ 14,562 Gallagher (Arthur J.) (Financials) 800 27,720 Gladstone Capital (Financials) 1,800 32,481 Health Net* (Health Care Providers and Services) 400 10,708 Hewitt Associates (Class A)* (Commercial Services and Supplies) 200 4,660 Hollywood Entertainment* (Retailing) 1,300 26,903 Hughes Supply (Retailing) 700 31,430 Informatica* (Software and Services) 3,700 26,215 Integra LifeSciences* (Health Care Equipment and Supplies) 1,600 34,792 Iron Mountain* (Commercial Services and Supplies) 3,450 106,432 Isis Pharmaceuticals* (Pharmaceuticals and Biotechnology) 3,200 30,048 J. Jill Group* (Retailing) 200 7,576 JetBlue Airways* (Transportation) 800 36,428 Manugistics Group* (Software and Services) 3,015 18,422 Medarex* (Pharmaceuticals and Biotechnology) 3,500 26,058 Medical Staffing Network Holdings* (Commercial Services and Supplies) 1,100 26,950 Medicis Pharmaceutical (Class A)* (Pharmaceuticals and Biotechnology) 1,000 42,760 Microtune* (Communications Equipment) 3,400 30,107 MKS Instruments* (Semiconductor Equipment and Products) 800 15,996 MSC Industrial Direct (Class A)* (Retailing) 2,900 56,550 National-Oilwell* (Energy) 2,100 44,205 NetFlix* (Retailing) 100 1,399 NetIQ* (Software and Services) 1,800 40,680 New York Community Bancorp (Financials) 1,000 26,675 Oakley* (Consumer Staples) 3,280 57,072 OM Group (Chemicals) 1,100 68,200 OSI Pharmaceuticals* (Pharmaceuticals and Biotechnology) 700 $ 17,031 Patterson-UTI Energy* (Energy) 3,200 90,336 Performance Food Group* (Consumer Staples) 1,385 46,889 PETCO Animal Supplies* (Retailing) 300 7,472 Pioneer Natural Resources* (Energy) 6,050 157,602 Plexus* (Electronic Equipment and Instruments) 755 13,669 Powerwave Technologies* (Communications Equipment) 2,800 25,634 Priority Healthcare (Class B)* (Health Care Providers and Services) 2,500 58,713 RARE Hospitality International* (Hotels, Restaurants and Leisure) 1,900 51,157 Resources Connection* (Commercial Services and Supplies) 2,400 64,788 SangStat Medical* (Pharmaceuticals and Biotechnology) 1,900 43,672 Schein (Henry)* (Health Care Providers and Services) 700 31,147 Select Medical* (Health Care Providers and Services) 3,600 56,376 Serologicals* (Pharmaceuticals and Biotechnology) 1,300 23,784 SICOR* (Pharmaceuticals and Biotechnology) 2,550 47,303 Silicon Image* (Semiconductor Equipment and Products) 3,400 20,740 SkyWest (Transportation) 1,800 42,093 Smith international* (Energy) 860 58,643 Sonic* (Hotels, Restaurants and Leisure) 100 3,141 SonoSite* (Health Care Equipment and Supplies) 1,800 25,983 Spinnaker Exploration* (Energy) 2,250 81,045 Station Casinos* (Hotels, Restaurants and Leisure) 4,700 83,895
---------- * Non-income producing security. See Notes to Financial Statements. 23 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED STATES (continued) Thoratec* (Health Care Equipment and Supplies) 2,900 $ 26,028 THQ* (Software and Services) 3,775 112,589 Tower Automotive* (Automobiles and Components) 2,100 29,295 Transkaryotic Therapies* (Pharmaceuticals and Biotechnology) 885 31,900 UCBH Holdings (Financials) 1,200 45,708 Universal Health Services (Class B)* (Health Care Providers and Services) 800 39,200 Vitesse Semiconductor* (Semiconductor Equipment and Products) 4,700 14,547 Waste Connections* (Commercial Services and Supplies) 3,250 101,546 Watson Wyatt Holdings (Class A)* (Commercial Services and Supplies) 1,400 $ 33,908 West (Telecommunication Services) 1,900 41,772 Wet Seal (The) (Class A)* (Retailing) 1,350 32,846 XTO Energy (Energy) 8,400 173,040 Zebra Technologies (Class A)* (Office Electronics) 600 28,929 ---------- 4,740,054 ---------- TOTAL INVESTMENTS - 95.4% (Cost $8,429,086) 8,239,531 OTHER ASSETS LESS LIABILITIES - 4.6% 401,472 ---------- NET ASSETS - 100.0% $8,641,003 ==========
--------------------------------------------------------------------------------
SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO SHARES VALUE ------ ---------- COMMON STOCKS -- 90.3% CANADA -- 1.2% Celestica* (Electronic Equipment and Instruments) 1,100 $ 24,981 Cognos* (Application Software) 6,900 153,180 ----------- 178,161 ----------- DENMARK -- 0.6% Maconomy+ (IT Consulting and Services) 48,500 90,113 ----------- FRANCE -- 2.8% ActivCard (ADRs)* (Application Software) 14,100 89,676 Dassault Systemes (Application Software) 2,100 95,741 SR Teleperformance (Media) 6,900 165,281 THOMSON multimedia* (Consumer Durables and Apparel) 3,600 84,991 ----------- 435,689 ----------- GERMANY -- 0.7% SAP (Application Software) 1,100 $ 107,619 ----------- GREECE -- 1.3% Cosmote Mobile Communications (Telecommunication Services) 19,700 197,300 ----------- HONG KONG -- 1.2% TCL International Holdings (Consumer Durables and Apparel) 678,000 189,064 ----------- INDIA -- 1.3% Infosys Technologies (IT Consulting and Services) 2,900 194,969 ----------- ISRAEL -- 1.6% Orbotech* (Electronic Equipment and Instruments) 11,050 250,945 ----------- JAPAN -- 10.5% Dai Nippon Printing (Commercial Services and Supplies) 10,000 132,733
---------- * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. 24 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE ------ ---------- JAPAN (continued) FANUC (Capital Goods) 4,400 $ 220,982 HOYA (Electronic Equipment and Instruments) 5,000 363,743 JSR (Materials) 21,000 177,475 Omron (Electronic Equipment and Instruments) 15,000 217,119 Sega* (Consumer Durables and Apparel) 7,000 168,189 SMC (Capital Goods) 1,000 118,216 THK (Capital Goods) 11,800 226,914 ----------- 1,625,371 ----------- NETHERLANDS -- 3.5% ASM International* (Semiconductor Equipment and Products) 19,300 332,925 Oce (Office Electronics) 9,000 104,687 STMicroelectronics (Semiconductor Equipment and Products) 4,000 99,561 ----------- 537,173 ----------- SINGAPORE -- 2.6% Chartered Semiconductor Manufacturing* (Semiconductor Equipment and Products) 6,000 120,030 Flextronics International*(Electronic Equipment and Instruments) 9,500 67,687 Venture Manufacturing (Electronic Equipment and Instruments) 26,000 207,558 ----------- 395,275 ----------- SOUTH KOREA -- 8.1% Humax (Consumer Durables and Apparel) 8,754 191,016 LG Electronics* (Consumer Durables and Apparel) 8,600 343,142 LG TeleCom* (Telecommunication Services) 34,600 200,180 Samsung Electro-Mechanics (Electronic Equipment and Instruments) 5,130 248,611 Samsung SDI (Electronic Equipment and Instruments) 3,420 264,958 ----------- 1,247,907 ----------- SWITZERLAND -- 1.6% Leica Geosystems* (Electronic Equipment and Instruments) 300 $ 30,774 Logitech International* (Computers and Peripherals) 3,900 180,945 TEMENOS Group* (Systems Software) 8,630 42,528 ----------- 254,247 ----------- TAIWAN -- 2.4% Ambit Microsystems (Computers and Peripherals) 39,000 148,833 ASE Test* (Semiconductor Equipment and Products) 8,300 80,552 Yageo* (Electronic Equipment and Instruments) 335,000 148,399 ----------- 377,784 ----------- UNITED KINGDOM -- 0.1% Spirent (Electronic Equipment and Instruments) 8,541 11,264 ----------- UNITED STATES -- 50.8% Accenture (Class A)* (IT Consulting and Services) 9,600 182,400 Advanced Micro Devices* (Semiconductor Equipment and Products) 4,600 44,712 Affiliated Computer Services (Class A)* (IT Consulting and Services) 3,500 166,180 Amdocs* (IT Consulting and Services) 27,400 206,870 Amkor Technology* (Semiconductor Equipment and Products) 16,700 103,958 Atmel* (Semiconductor Equipment and Products) 11,200 70,224 Autodesk (Application Software) 23,400 310,167 BMC Software* (Systems Software) 6,500 107,900 Cadence Design Systems* (Application Software) 10,500 169,260 Cisco Systems* (Communications Equipment) 10,500 146,422
---------- * Non-income producing security. See Notes to Financial Statements. 25 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
SHARES VALUE ------ ---------- UNITED STATES (continued) Citrix Systems* (Systems Software) 9,500 $ 57,190 Clear Channel Communications* (Media) 4,000 128,080 Computer Associates International (Systems Software) 12,200 193,858 Computer Sciences* (IT Consulting and Services) 1,700 81,260 CSG Systems International* (IT Consulting and Services) 17,700 338,866 J.D. Edwards* (Application Software) 7,000 85,365 Electro Scientific Industries* (Semiconductor Equipment and Products) 3,300 80,190 Electronic Arts* (Entertainment Software) 900 59,445 Electronic Data Systems (IT Consulting and Services) 7,500 278,625 ESS Technology* (Semiconductor Equipment and Products) 4,000 70,100 FEI* (Semiconductor Equipment and Products) 3,500 85,698 First Data (Commercial Services and Supplies) 3,000 111,600 Garmin* (Communications Equipment) 12,600 278,019 Hewitt Associates (Class A)* (Commercial Services and Supplies) 300 6,990 KPMG Consulting* (IT Consulting and Services) 5,500 81,702 Lexmark International (Class A)* (Computers and Peripherals) 8,300 451,520 Microsoft* (Systems Software) 14,000 764,820 NetIQ* (Application Software) 9,800 221,480 Polycom* (Communications Equipment) 7,500 89,813 Rational Software* (Application Software) 7,000 $ 57,435 Sabre Holdings (Class A)* (IT Consulting and Services) 6,000 214,800 Sanmina-SCI* (Electronic Equipment and Instruments) 5,000 31,525 SunGard Data Systems* (IT Consulting and Services) 18,400 487,232 Symantec* (Systems Software) 18,500 607,725 Synopsys* (Application Software) 18,200 1,000,818 Take-Two Interactive Software* (Entertainment Software) 4,000 82,320 Texas Instuments (Semiconductor Equipment and Products) 4,000 94,800 THQ* (Entertainment Software) 3,000 89,475 UTStarcom* (Communications Equipment) 10,100 203,565 ----------- 7,842,409 ----------- TOTAL COMMON STOCKS (Cost $17,738,951) 13,935,290 PREFERRED STOCKS -- 0.9% (Cost $149,097) SOUTH KOREA -- 0.9% Samsung Electronics (Semiconductor Equipment and Products) 1,000 135,495 ----------- TOTAL INVESTMENTS -- 91.2% (Cost $17,888,048) 14,070,785 OTHER ASSETS LESS LIABILITIES -- 8.8% 1,358,965 ----------- NET ASSETS -- 100.0% $15,429,750 ===========
---------- * Non-income producing security. See Notes to Financial Statements. 26 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO
PRINCIPAL AMOUNT VALUE ------ ---------- CORPORATE BONDS 92.8% AEROSPACE AND DEFENSE 1.0% Alliant Techsystems 8-1/2%, 5/15/2011 $ 25,000 $ 26,250 L-3 Communications 7-5/8%, 6/15/2012+ 75,000 75,562 ----------- 101,812 ----------- AUTOMOTIVE AND RELATED 7.0% Asbury Automotive Group 9%, 6/15/2012+ 75,000 72,750 Collins & Aikman Products 10-1/2%, 10/31/2011+ 50,000 50,500 CSK Auto 12%, 6/15/2006+ 75,000 80,531 Dana 101/8%, 3/15/2010+ 50,000 51,250 Diamond Triumph Automotive 9-1/4%, 4/1/2008 75,000 71,063 Dura Operating: 9%, 5/1/2009 25,000 24,375 8-5/8%, 4/15/2012+ 50,000 50,500 Metaldyne 11%, 6/15/2012+ 50,000 49,000 Pennzoil-Quaker State 10%, 11/1/2008 50,000 58,812 Stoneridge 111/2%, 5/15/2012+ 50,000 50,750 Tenneco Automotive 11-5/8%, 10/15/2009 100,000 84,000 United Auto Group 9-5/8%, 3/15/2012+ 75,000 75,750 ----------- 719,281 ----------- BROADCASTING 6.9% Cumulus Media 103/8%, 7/1/2008 125,000 133,125 Entravision Communications 8-1/8%, 3/15/2009+ 75,000 75,750 Fox Sports Networks 0% (9-3/4%**), 8/15/2007 25,000 25,625 Lin Television 83/8%, 3/1/2008 100,000 99,750 Nextmedia 103/4%, 7/1/2011 25,000 25,375 Sinclair Broadcast Group 8%, 3/15/2012 100,000 99,000 BROADCASTING (continued) Spanish Broadcasting System 9-5/8%, 11/1/2009 $175,000 $ 181,125 Young Broadcasting 8-3/4%, 6/15/2007 75,000 67,125 ----------- 706,875 ----------- BUSINESS SERVICES 1.2% Iron Mountain 8-5/8%, 4/1/2013 65,000 66,788 Muzak 9-7/8%, 3/15/2009 70,000 57,750 ----------- 124,538 ----------- CABLE SYSTEMS AND SATELLITE VIDEO 5.9% Charter Communications Holdings 12-1/8%, 1/15/2012+ 375,000 121,875 CSC Holdings 8-1/8%, 7/15/2009 125,000 103,441 GCI 9-3/4%, 8/1/2007 170,000 157,250 PanAmSat 8-1/2%, 2/1/2012+ 50,000 46,250 Paxson Communications 0% (12-1/4%**), 1/15/2009 175,000 100,188 Quebecor Media 11-1/8%, 7/15/2011 75,000 74,250 ----------- 603,254 ----------- CHEMICALS 6.7% Equistar Chemicals 10-1/8%, 9/1/2008 90,000 86,400 IMC Global 10-7/8%, 6/1/2008 25,000 27,000 International Specialty Holdings 10-5/8%, 12/15/2009+ 50,000 49,750 Koppers Industry 9-7/8%, 12/1/2007 100,000 101,750 Lyondell Chemical: 10-7/8%, 5/1/2009 75,000 66,750 11-1/8%, 7/15/2012 100,000 99,750 Methanex 8-3/4%, 8/15/2012 100,000 102,500 Millennium America: 9-1/4%, 6/15/2008 25,000 25,625 7-5/8%, 11/15/2026 50,000 41,250 OM Group 91/4%, 12/15/2011 25,000 26,000 Texas Petrochemicals 111/8%, 7/1/2006 75,000 61,125 ----------- 687,900 ----------- ---------- + 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.
27 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ------ ---------- COMMUNICATIONS INFRASTRUCTURE 1.0% Crown Castle International 0% (10-5/8%**), 11/15/2007 150,000 $ 101,250 ----------- CONSUMER PRODUCTS 1.5% Constellation Brands 8-1/8%, 1/15/2012 50,000 51,562 JohnsonDiversey 9-5/8%, 5/15/2012+ 50,000 52,500 Russell 9-1/4%, 5/1/2010+ 50,000 51,750 ----------- 155,812 ----------- ENERGY 9.7% Clark Refining & Marketing 8-7/8%, 11/15/2007 25,000 24,125 Dresser 9-3/8%, 4/15/2011+ 75,000 76,313 El Paso Energy Partnership 8-1/2%, 6/1/2011 10,000 10,000 Encore Acquisition 83/8%, 6/15/2012+ 125,000 125,937 Forest Oil 8%, 12/15/2011 100,000 100,500 Magnum Hunter Resources 9.60%, 3/15/2012+ 150,000 155,250 Nuevo Energy 9-1/2%, 6/1/2008 100,000 101,250 Plains Exploration & Production 8-3/4%, 7/1/2012+ 50,000 49,188 Stone Energy 81/4%, 12/15/2011 50,000 50,250 Trico Marine Services 8-7/8%, 5/15/2012+ 125,000 124,375 Westport Resources 8-1/4%, 11/1/2011 125,000 128,750 XTO Energy 7-1/2%, 4/15/2012 50,000 51,250 ----------- 997,188 ----------- EQUIPMENT 1.7% Joy Global 8-3/4%, 3/15/2012 25,000 25,688 Williams Scotsman 9-7/8%, 6/1/2007 150,000 144,000 ----------- 169,688 ----------- FINANCIAL SERVICES 3.1% Dollar Financial Group 10-7/8%, 11/15/2006 125,000 115,625 Ucar Finance 10-1/4%, 2/15/2012+ 100,000 102,500 Western Financial Bank 9-5/8%, 5/15/2012 100,000 100,500 ----------- 318,625 ----------- FUNERAL SERVICES 1.0% Service Corp. International 7.20%, 6/1/2006 75,000 70,687 Stewart Enterprises 10-3/4%, 7/1/2008 25,000 27,750 ----------- 98,437 ----------- GAMING/HOTELS 13.3% Alliance Gaming 10%, 8/1/2007 75,000 78,375 Boyd Gaming 9-1/2%, 7/15/2007 25,000 25,375 John Q. Hammons Hotels 8-7/8%, 5/15/2012+ 125,000 123,125 Hollywood Casino 11-1/4%, 5/1/2007 100,000 108,500 Hollywood Casino Shreveport 13%, 8/1/2006 25,000 27,500 Host Marriot 9-1/4%, 10/1/2007 50,000 50,500 Isle of Capri Casinos 8-3/4%, 4/15/2009 100,000 101,000 Mandalay Resort Group: 10-1/4%, 8/1/2007 50,000 52,688 9-3/8%, 2/15/2010 175,000 182,000 MeriStar Hospitality 9-1/8%, 1/15/2011 50,000 48,000 MeriStar Hospitality Operating Partners 9-1/8%, 1/15/2011+ 50,000 48,000 MGM Grand 9-3/4%, 6/1/2007 100,000 106,000 Park Place Entertainment 9-3/8%, 2/15/2007 100,000 104,750 Station Casinos 9-7/8%, 7/1/2010 200,000 212,500 Venetian Casino Resort 11%, 6/15/2010+ 100,000 101,125 ----------- 1,369,438 ----------- HEALTH CARE/ MEDICAL PRODUCTS 0.3% Alliance Imaging 10-3/8%, 4/15/2011 25,000 26,625 ----------- ---------- + 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.
28 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE -------- ---------- INDUSTRIAL/ MANUFACTURING 8.9% Associated Materials 93/4%, 4/15/2012+ $ 50,000 $ 51,500 Beazer Homes USA 83/8%, 4/15/2012+ 75,000 76,125 Foamex: 9-7/8%, 6/15/2007 25,000 22,375 103-/4%, 4/1/2009+ 75,000 76,875 Healthsouth 7%, 6/15/2008 75,000 74,250 D.R. Horton 8%, 2/1/2009 50,000 50,000 Hovnanian Enterprises 8-7/8%, 4/1/2012+ 50,000 49,437 KB Home 9-1/2%, 2/15/2011 50,000 51,625 NMHG Holding 10%, 5/15/2009+ 50,000 51,000 Owens Brockway Glass Container 8-7/8%, 2/15/2009+ 125,000 125,625 Ryland Group 9-3/4%, 9/1/2010 50,000 54,375 Schuler Homes 10-1/2%, 7/15/2011 25,000 26,875 Terex: 8-7/8%, 8/1/2008 50,000 51,000 10-3/8%, 4/15/2011 75,000 81,000 WCI Communities: 10-5/8%, 2/15/2011 25,000 26,250 9-1/8%, 5/1/2012 50,000 49,875 ----------- 918,187 ----------- LEISURE 1.9% Premier Parks 10%, 4/1/2008 50,000 49,000 Six Flags 8-7/8%, 2/1/2010 150,000 150,000 ----------- 199,000 ----------- PAPER AND PACKAGING 5.9% Graphic Packaging 8-5/8%, 2/15/2012+ 75,000 77,813 Longview Fibre 10%, 1/15/2009+ 50,000 52,125 Owens-Illinois 7.80%, 5/15/2018 75,000 63,000 Potlatch 10%, 7/15/2011 75,000 82,500 Silgan Holdings 9%, 6/1/2009+ 50,000 51,750 Stone Container: 9-3/4%, 2/1/2011 75,000 80,625 8-3/8%, 7/1/2012+ 100,000 101,250 Tembec Industries 7-3/4%, 3/15/2012 100,000 99,750 ----------- 608,813 ----------- PRINTING AND PUBLISHING 5.1% American Media Operations 10-1/4%, 5/1/2009 75,000 79,125 Garden State Newspapers 8-3/4%, 10/1/2009 75,000 74,437 Perry Judd's Holdings 10-5/8%, 12/15/2007 50,000 49,250 Primedia 10-1/4%, 6/1/2004 75,000 64,125 TDL Infomedia Holdings 0% (15-1/2%**), 10/15/2010 250,000 202,500 TransWestern Holdings 0% (11-7/8%**), 11/15/2008 50,000 50,813 ----------- 520,250 ----------- RESTAURANTS AND FOOD 3.4% Fleming 9-7/8%, 5/1/2012+ 100,000 95,000 Land OLakes 8-3/4%, 11/15/2011+ 25,000 23,625 Roundy's 8-7/8%, 6/15/2012+ 150,000 150,375 Yum! Brands 7.70%, 7/1/2012 75,000 75,375 ----------- 344,375 ----------- RETAILING 0.9% NBC Acquisition 0% (10-3/4%**), 2/15/2009 120,000 96,600 SEMICONDUCTORS 1.4% Amkor Technology 9-1/4%, 5/1/2006 75,000 61,875 Fairchild Semiconductor 10-3/8%, 10/1/2007 75,000 78,375 ----------- 140,250 ----------- STEEL AND METALS 2.7% AK Steel 7-3/4%, 6/15/2012+ 100,000 99,500 Earle M. Jorgensen 93/4%, 6/1/2012+ 50,000 49,500 ---------- + Rule 144A security. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements.
29 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE -------- ---------- STEEL AND METALS (continued) Steel Dynamics 9-1/2%, 3/15/2009+ $ 25,000 $ 26,500 Trimas 97/8%, 6/15/2012+ 100,000 100,250 ----------- 275,750 ----------- UTILITIES 1.6% Calpine 8-1/2%, 2/15/2011 100,000 67,500 Midland Funding 11-3/4%, 7/23/2005 100,000 101,391 ----------- 168,891 ----------- WIRELESS TELECOMMUNICATIONS 0.7% Nextel Communications 9-3/8%, 11/15/2009 150,000 76,500 ----------- TOTAL CORPORATE BONDS (Cost $9,749,200) 9,529,339 ----------- PREFERRED STOCKS 2.3% BROADCASTING 2.3% Cumulus Media 13-3/4% 76 84,550 Sinclair Capital 11-5/8% 1,500 156,187 ----------- TOTAL PREFERRED STOCKS (Cost $229,454) 240,737 ----------- TOTAL INVESTMENTS 95.1% (Cost $9,978,654) 9,770,076 OTHER ASSETS LESS LIABILITIES 4.9% 498,377 ----------- NET ASSETS 100.0% $10,268,453 ===========
-------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO
SHARES VALUE --------- ---------- COMMON STOCKS 55.3% AUTOMOBILES AND COMPONENTS 0.3% General Motors 180 $ 9,621 ---------- CAPITAL GOODS 4.9% General Dynamics 610 64,874 General Electric 330 9,586 Illinois Tool Works 530 36,199 Lockheed Martin 230 15,985 Raytheon 1,470 59,902 ---------- 186,546 ---------- CHEMICALS 1.3% Air Products and Chemicals 990 49,965 ---------- COMPUTERS AND PERIPHERALS 1.4% Dell Computer 870 $ 22,764 International Business Machines 410 29,520 ---------- 52,284 ---------- CONSTRUCTION MATERIALS 0.6% Martin Marietta Materials 590 23,010 ---------- CONSUMER STAPLES 5.1% Anheuser-Busch 340 17,000 Gillette 650 22,015 Johnson & Johnson 850 44,421 Kraft Foods (Class A) 1,170 47,912 Philip Morris 480 20,966 Procter & Gamble 490 43,757 ---------- 196,071 ---------- + 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.
30 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- JUNE 30, 2002 -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
SHARES VALUE ------ ---------- ELECTRONIC EQUIPMENT AND INSTRUMENTS 1.0% Amphenol (Class A)* 560 $ 20,160 Flextronics International* (Singapore) 1,520 10,830 Waters 200 5,340 ---------- 36,330 ---------- ENERGY 5.4% Amerada Hess 640 52,800 Exxon Mobil 1,674 68,500 Nabors Industries* 440 15,532 Noble Energy 1,260 45,423 Rowan 490 10,510 Weatherford International 340 14,688 ---------- 207,453 ---------- FINANCIALS 11.9% American Express 810 29,419 Bank of America 360 25,330 BB&T 1,830 70,638 Berkley (W.R.) 1,170 64,350 Citigroup 2,693 104,354 Duke Realty 710 20,555 Keycorp 920 25,116 J.P. Morgan Chase 2,140 72,589 Wachovia 1,020 38,944 ---------- 451,295 ---------- HEALTH CARE 4.4% Allergan 200 13,350 Baxter International 700 31,115 Forest Labs 550 38,940 Pfizer 1,750 61,250 St. Jude Medical 330 24,370 ---------- 169,025 ---------- HOTELS, RESTAURANTS AND LEISURE 0.7% Starwood Hotels & Resorts Worldwide 830 27,299 ---------- MEDIA 3.0% AOL Time Warner* 1,000 14,710 Clear Channel Communications* 340 10,887 Gannett 280 21,252 Knight Ridder 420 26,439 Viacom (Class B)* 910 40,377 ---------- 113,665 ---------- METALS AND MINING 0.7% CONSOL Energy 1,270 26,988 ---------- PAPER AND FOREST PRODUCTS 1.7% Bowater 610 33,166 Weyerhaeuser 470 30,009 ---------- 63,175 ---------- PHARMACEUTICALS AND BIOTECHNOLOGY 0.5% Pharmacia 500 18,725 ---------- RETAILING 5.5% American Eagle Outfitters* 1,440 30,434 BJ's Wholesale Club 270 10,395 May Department Stores 1,530 50,383 Sears, Roebuck 610 33,123 Wal-Mart Stores 1,130 62,161 Walgreen 600 23,178 ---------- 209,674 ---------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS 2.1% Analog Devices* 470 13,959 Applied Materials* 960 18,326 Intel 2,070 37,829 Marvell Technology Group* 470 9,351 ---------- 79,465 ---------- SOFTWARE AND SERVICES 2.1% Microsoft* 1,060 57,908 National Instruments 340 11,072 VERITAS Software* 590 11,673 ---------- 80,653 ---------- TELECOMMUNICATION SERVICES 1.1% SBC Communications 1,429 43,584 ---------- TRANSPORTATION 1.0% AMR 620 10,453 Burlington Northern Santa Fe 550 16,500 Southwest Airlines 610 9,858 ---------- 36,811 ---------- ---------- * Non-income producing security. See Notes to Financial Statements.
31 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
SHARES OR PRINCIPAL AMOUNT VALUE --------- ---------- VUTILITIES 0.6% Ameren 570 shs. $ 24,516 ---------- TOTAL COMMON STOCKS (Cost $2,229,468) 2,106,155 ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES 19.6% US GOVERNMENT SECURITIES 13.6% US Government Gtd. Title XI (Bay Transportation) 7.30%, 6/1/2021 $ 88,000 95,129 US Treasury Bonds 5-3/8%, 2/15/2031 200,000 195,906 US Treasury Notes: 6%, 8/15/2004 70,000 74,388 4-5/8%, 5/15/2006 55,000 56,667 4-3/4%, 11/15/2008 40,000 40,744 5%, 8/15/2011 55,000 55,781 ---------- Total US Government Securities (Cost $511,028) 518,615 ---------- AGENCY SECURITIES 3.8% FHLMC: 3-1/2%, 1/16/2004 50,000 50,251 5-1/2%, 7/15/2006 15,000 15,748 6-5/8%, 9/15/2009 25,000 27,461 FNMA: 5-1/4%, 1/15/2009 30,000 30,684 6-1/4%, 7/19/2011 20,000 20,642 ---------- Total Agency Securities (Cost $142,779) 144,786 ---------- MORTGAGE-BACKED SECURITIES 2.2% FHLMC GOLD: 7-1/2%, 10/1/2017 24,173 25,651 8%, 12/1/2023 13,962 14,994 FNMA: 8-1/2%, 10/1/2015 16,026 17,190 8%, 6/1/2028 13,004 13,944 6%, 9/1/2028 11,296 11,369 ---------- PRINCIPAL AMOUNT VALUE --------- ---------- Total Mortgage-Backed Securities (Cost $78,541) $ 83,148 ---------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $732,348) 746,549 ---------- CORPORATE BONDS 19.5% AUTOMOBILES AND COMPONENTS 0.9% Ford Motor 7-3/8%, 2/1/2011 35,000 35,507 ---------- CAPITAL GOODS 0.9% General Electric Capital: 6-7/8%, 11/15/2010 10,000 10,730 6-3/4%, 3/15/2032 10,000 9,854 Masco 5-7/8%, 7/15/2012 15,000 14,832 ---------- 35,416 ---------- CHEMICALS 0.7% Ashland 6.86%, 5/1/2009 10,000 10,396 Valspar 6%, 5/1/2007 15,000 15,202 ---------- 25,598 ---------- COMMERCIAL SERVICES AND SUPPLIES 0.7% Associates Corp. of North America 6.95%, 11/1/2018 15,000 15,550 Pitney Bowes 5-3/4%, 8/15/2008 10,000 10,380 ---------- 25,930 ---------- CONSUMER STAPLES 1.9% Coca-Cola Enterprises 5-1/4%, 5/15/2007 20,000 20,467 Johnson & Johnson 6.95%, 9/1/2029 15,000 16,394 Kraft Foods 6-1/4%, 6/1/2012 20,000 20,646 Newell Rubbermaid 6%, 3/15/2007 15,000 15,471 ---------- 72,978 ---------- ---------- + Investments in mortgage-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying mortgage instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements.
32 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- JUNE 30, 2002 -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE --------- ---------- ENERGY 0.8% Constellation Energy Group 6.35%, 4/1/2007 $ 10,000 $ 10,369 Puget Sound Energy 7.02%, 12/1/2027 15,000 13,947 ---------- 24,316 ---------- FINANCIALS 9.2% AFLAC 61/2%, 4/15/2009 20,000 20,926 Bank of America 61/4%, 4/15/2012 20,000 20,461 Citigroup 4-1/8%, 6/30/2005 15,000 15,044 Countrywide Funding 5-1/2%, 2/1/2007 20,000 20,377 FleetBoston Financial 4-7/8%, 12/1/2006 15,000 15,065 General Motors Acceptance 7-1/4%, 3/2/2011 15,000 15,339 Goldman Sachs Group 6-7/8%, 1/15/2011 15,000 15,576 Household Finance 7-7/8%, 3/1/2007 15,000 16,014 International Lease Finance 5-3/4%, 2/15/2007 15,000 15,385 Metropolitan Life Insurance 6-1/8%, 12/1/2011 20,000 20,443 J.P. Morgan Chase 51/4%, 5/30/2007 20,000 20,137 Morgan Stanley Group 5.80%, 4/1/2007 15,000 15,399 Morgan Stanley Group 6-3/4%, 4/15/2011 20,000 20,608 National City 6-7/8%, 5/15/2019 20,000 20,522 PNC Funding 5-3/4%, 8/1/2006 15,000 15,475 Synovus Financial 7-1/4%, 12/15/2005 20,000 21,818 USA Education 5-5/8%, 4/10/2007 20,000 20,679 Wachovia Bank 4.85%, 7/30/2007 20,000 20,092 Wells Fargo Financial 4-7/8%, 6/12/2007 20,000 19,995 ---------- 349,355 ---------- MEDIA 0.9% AOL Time Warner 6-3/4%, 4/15/2011 15,000 13,826 Viacom 5-5/8%, 5/1/2007 20,000 20,498 ---------- 34,324 ---------- PHARMACEUTICALS AND BIOTECHNOLOGY 0.4% Pharmacia 6-1/2%, 12/1/2018 15,000 15,265 ---------- RETAILING 0.8% Kohl's 7-1/4%, 6/1/2029 10,000 10,753 Sears, Roebuck Acceptance 6.70%, 4/15/2012 10,000 10,248 Target 7%, 7/15/2031 10,000 10,615 ---------- 31,616 ---------- TELECOMMUNICATION SERVICES 1.4% Bellsouth 6-7/8%, 10/15/2031 15,000 14,914 SBC Communications 5-3/4%, 5/2/2006 15,000 15,513 Verizon 6-1/8%, 3/1/2012 25,000 23,825 ---------- 54,252 ---------- TRANSPORTATION 0.4% Norfolk Southern 6%, 4/30/2008 15,000 15,534 ---------- UTILITIES 0.5% Cinergy 6-1/4%, 9/1/2004 20,000 20,328 ---------- TOTAL CORPORATE BONDS (Cost $732,894) 740,419 ---------- Total Investments 94.4% (Cost $3,694,710) 3,593,123 ---------- OTHER ASSETS LESS LIABILITIES 5.6% 214,073 ---------- NET ASSETS 100.0% $3,807,196 ========== ---------- See Notes to Financial Statements.
33 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO
SHARES VALUE ------ ---------- COMMON STOCKS 92.1% AUSTRALIA 6.4% Commonwealth Bank of Australia* (Banks) 5,500 $ 101,977 News Corp. (ADRs) (Media) 3,500 80,255 Woolworths (Consumer Staples) 13,300 98,475 ---------- 280,707 ---------- AUSTRIA 1.3% Mayr-Melnhof Karton (Containers and Packaging) 800 57,591 ---------- BRAZIL 1.9% Empresa Brasileira de Aeronautica Embraer (ADRs) (Capital Goods) 3,900 83,460 ---------- CANADA 2.3% Barrick Gold (Metals and Mining) 5,400 102,546 ---------- FINLAND 3.9% Nokia (ADRs) (Communications Equipment) 5,000 72,400 UPM-Kymmene (Paper and Forest Products) 2,500 98,230 ---------- 170,630 ---------- FRANCE 7.4% Aventis (Health Care) 1,550 109,628 Caisse Nationale de Crdit Agricole (Banks) 4,700 104,243 Carrefour* (Consumer Staples) 1,700 91,832 Dassault Systemes (Software and Services) 500 22,795 ---------- 328,498 ---------- GERMANY 9.1% Allianz (Insurance) 400 80,615 Bayerische Motoren Werke "BMW" (Automobiles and Components) 2,200 89,153 Deutsche Telekom (Banks) 1,300 90,363 E.ON (Utilities) 2,050 118,721 SAP (Software and Services) 250 24,459 ---------- 403,311 ---------- HONG KONG 4.3% CNOOC (Energy) 64,500 $ 86,416 Hutchison Whampoa (Capital Goods) 9,000 67,214 Sun Hung Kai Properties (Real Estate) 5,000 37,982 ---------- 191,612 ---------- IRELAND 2.0% Bank of Ireland (Banks) 7,064 87,808 ---------- ISRAEL 3.2% Teva Pharmaceutical Industries (ADRs) (Health Care) 2,100 140,248 ---------- ITALY 3.2% ENI (Energy) 8,950 142,042 ---------- JAPAN 11.7% Canon (Office Electronics) 1,100 41,572 East Japan Railway (Transportation) 5 23,401 Hankyu Department Stores (Retailing) 10,000 76,086 Honda Motor (Automobiles and Components) 2,900 117,582 Nomura Holdings (Diversified Financials) 3,000 44,050 Sony (Consumer Durables and Apparel) 1,700 89,776 Takeda Chemical Industries (Health Care) 1,800 78,989 Toyota Motor (Automobiles and Components) 1,700 45,101 ---------- 516,557 ---------- MEXICO 1.3% Tubos de Acero de Mxico (ADRs) (Energy) 6,000 55,200 ---------- NETHERLANDS 6.4% Akzo Nobel* (Chemicals) 2,000 86,923 ASM International* (Semiconductor Equipment and Products) 2,500 43,125 Reed Elsevier* (Media) 6,600 89,782 Unilever (ADRs) (Consumer Staples) 1,000 64,800 ---------- 284,630 ---------- ---------- * Non-income producing security. See Notes to Financial Statements.
34 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- JUNE 30, 2002 -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ---------- RUSSIA 1.3% Surgutneftegaz (ADRs)* (Energy) 2,900 $ 56,695 ---------- SOUTH KOREA 1.0% Samsung Electronics (Semiconductor Equipment and Products) 160 43,757 ---------- SPAIN 3.9% Banco Bilbao Vizcaya Argentaria (Banks) 8,100 91,423 Banco Popular Espaol (Banks) 1,825 80,541 ---------- 171,964 ---------- SWITZERLAND 7.0% Credit Suisse Group (Banks) 1,500 47,519 Novartis (Health Care) 2,400 105,317 Serono (Health Care) 60 39,464 Swiss Re (Insurance) 700 68,287 Syngenta (Chemicals) 800 47,979 ---------- 308,566 ---------- UNITED KINGDOM 14.5% Barclays Bank (Banks) 10,300 86,685 BP (ADRs) (Energy) 2,300 116,127 British Sky Broadcasting (Media) 2,250 21,578 Centrica (Utilities) 22,250 68,865 CGNU (Insurance) 2,500 20,106 Diageo (Consumer Staples) 8,572 111,350 GlaxoSmithKline* (Health Care) 1,127 24,365 GlaxoSmithKline (ADRs) (Health Care) 1,500 64,710 Royal Bank of Scotland Group (Banks) 4,465 126,621 ---------- 640,407 ---------- TOTAL COMMON STOCKS (Cost $3,962,037) 4,066,229 ---------- PREFERRED STOCKS 0.4% (Cost $22,074) AUSTRALIA 0.4% News Corp. (Media) 4,300 19,805 ---------- TOTAL INVESTMENTS 92.5% (Cost $3,984,111) 4,086,034 OTHER ASSETS LESS LIABILITIES 7.5% 330,989 ---------- NET ASSETS 100.0% $4,417,023 ==========
-------------------------------------------------------------------------------- SELIGMAN INVESTMENT GRADE FIXED INCOME PORTFOLIO
PRINCIPAL AMOUNT VALUE ---------- ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES 41.4% US GOVERNMENT SECURITIES 25.5% US Treasury Bonds: 7-1/4%, 8/15/2022 $ 330,000 $ 393,187 6-1/4%, 8/15/2023 385,000 412,620 5-3/8%, 2/15/2031 230,000 225,292 US Treasury Notes: 3-3/8%, 3/30/2004 100,000 101,086 4-5/8%, 5/15/2006 265,000 273,033 4-3/4%, 11/15/2008 105,000 106,954 5%, 8/15/2011 440,000 446,249 ---------- Total US Government Securities (Cost $1,919,163) 1,958,421 ---------- AGENCY SECURITIES 9.7% FHLMC: 5-1/2%, 7/15/2006 $ 75,000 $ 78,738 4-7/8%, 3/15/2007 190,000 194,410 6.22%, 3/18/2008 75,000 77,200 5-7/8%, 3/21/2011 80,000 82,134 FNMA: 6-1/2%, 8/15/2004 100,000 106,805 6%, 12/15/2005 125,000 133,582 6-1/4%, 7/19/2011 75,000 77,407 ---------- Total Agency Securities (Cost $736,258) 750,276 ---------- ---------- * Non-income producing security. See Notes to Financial Statements.
35 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN INVESTMENT GRADE FIXED INCOME PORTFOLIO (continued)
PRINCIPAL AMOUNT VALUE ---------- ---------- MORTGAGE-BACKED SECURITIES 6.2% FHLMC GOLD: 6%, 11/1/2010 $ 42,336 $ 43,736 7-1/2%, 10/1/2017 36,260 38,476 8%, 12/1/2023 22,681 24,358 FNMA: 8-1/2%, 10/1/2015 43,980 47,174 8%, 6/1/2028 26,009 27,887 6%, 9/1/2028 94,135 94,743 GNMA: 6-1/2%, 12/15/2028 135,260 135,353 6%, 12/20/2028 63,694 65,340 ---------- Total Mortgage-Backed Securities (Cost $459,703) 477,067 ---------- TOTAL US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES (Cost $3,115,124) 3,185,764 ---------- CORPORATE BONDS 39.1% AUTOMOBILES AND COMPONENTS 1.9% Ford Motor 7-3/8%, 10/1/2011 145,000 147,101 ---------- CAPITAL GOODS 2.1% General Electric Capital: 6-7/8%, 11/15/2010 40,000 42,922 6-3/4%, 3/15/2032 50,000 49,269 Masco 5-7/8%, 7/15/2012 70,000 69,214 ---------- 161,405 ---------- CHEMICALS 1.2% Ashland 6.86%, 5/1/2009 40,000 41,584 Valspar 6%, 5/1/2007 50,000 50,673 ---------- 92,257 ---------- COMMERCIAL SERVICES AND SUPPLIES 1.7% Associates Corp. of North America 6.95%, 11/1/2018 75,000 77,752 Pitney Bowes 5-3/4%, 8/15/2008 50,000 51,898 ---------- 129,650 ---------- CONSUMER STAPLES 3.6% Coca-Cola Enterprises 5-1/4%, 5/15/2007 95,000 97,218 Johnson & Johnson 6.95%, 9/1/2029 25,000 27,323 Kraft Foods 6-1/4%, 6/1/2012 85,000 87,747 Newell Rubbermaid 6%, 3/15/2007 60,000 61,885 ---------- 274,173 ---------- ENERGY 1.1% Constellation Energy Group 6.35%, 4/1/2007 35,000 36,290 Puget Sound Energy 7.02%, 12/1/2027 50,000 46,491 ---------- 82,781 ---------- FINANCIALS 18.4% AFLAC 6-1/2%, 4/15/2009 85,000 88,934 Bank of America 6-1/4%, 4/15/2012 85,000 86,958 Citigroup 4-1/8%, 6/30/2005 70,000 70,204 Countrywide Funding 5-1/2%, 2/1/2007 90,000 91,697 FleetBoston Financial 4-7/8%, 12/1/2006 60,000 60,261 General Motors Acceptance 7-1/4%, 3/2/2011 60,000 61,357 Goldman Sachs Group 6-7/8%, 1/15/2011 50,000 51,921 Household Finance 7-7/8%, 3/1/2007 80,000 85,409 International Lease Finance 5-3/4%, 2/15/2007 75,000 76,924 Metropolitan Life Insurance 6-1/8%, 12/1/2011 75,000 76,662 J.P. Morgan Chase 51/4%, 5/30/2007 75,000 75,515 Morgan Stanley Group 5.80%, 4/1/2007 55,000 56,464 Morgan Stanley Group 6-3/4%, 4/15/2011 75,000 77,279 -------------- + 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.
36 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- JUNE 30, 2002 --------------------------------------------------------------------------------
SELIGMAN INVESTMENT GRADE FIXED INCOME PORTFOLIO (continued) PRINCIPAL AMOUNT VALUE ---------- ---------- National City 6-7/8%, 5/15/2019 $ 70,000 $ 71,826 PNC Funding 5-3/4%, 8/1/2006 70,000 72,217 Synovus Financial 7-1/4%, 12/15/2005 75,000 81,816 USA Education 55/8%, 4/10/2007 80,000 82,716 Wachovia Bank 4.85%, 7/30/2007 75,000 75,343 Wells Fargo Financial 4-7/8%, 6/12/2007 75,000 74,983 ---------- 1,418,486 ---------- MEDIA 1.8% AOL Time Warner 63/4%, 4/15/2011 60,000 55,305 Viacom 5-5/8%, 5/1/2007 85,000 87,118 ---------- 142,423 ---------- PHARMACEUTICALS AND BIOTECHNOLOGY 0.7% Pharmacia 6-1/2%, 12/1/2018 55,000 55,970 ---------- RETAILING 2.1% Kohl's 7-1/4%, 6/1/2029 50,000 53,764 Sears, Roebuck Acceptance 6.70%, 4/15/2012 40,000 40,992 Target 7%, 7/15/2031 65,000 68,996 ---------- 163,752 ---------- TELECOMMUNICATION SERVICES 3.0% Bellsouth 6-7/8%, 10/15/2031 55,000 54,683 SBC Communications 5-3/4%, 5/2/2006 65,000 67,224 Verizon 6-1/8%, 3/1/2012 110,000 104,829 ---------- 226,736 ---------- TRANSPORTATION 0.8% Norfolk Southern 6%, 4/30/2008 60,000 62,138 ---------- UTILITIES 0.7% Cinergy 6-1/4%, 9/1/2004 50,000 50,821 ---------- TOTAL CORPORATE BONDS (Cost $2,978,002) 3,007,693 ---------- ASSET-BACKED SECURITIES 2.4% AEROSPACE AND DEFENSE 2.4% Peco Energy Transition Trust 6.05%, 3/1/2009 100,000 106,044 PP&L Transition 6.83%, 3/25/2007 75,000 79,953 ---------- TOTAL ASSET-BACKED SECURITIES (Cost $174,898) 185,997 ---------- REPURCHASE AGREEMENT 15.9% (Cost $1,220,000) State Street Bank & Trust, 1.81%, dated 6/28/2002, maturing 7/1/2002, collateralized by: $1,265,000 US Treasury Bills, 9/19/2002, with a fair market value of $1,260,256 1,220,000 1,220,000 ---------- TOTAL INVESTMENTS 98.8% (Cost $7,488,024) 7,599,454 OTHER ASSETS LESS LIABILITIES 1.2% 91,555 ---------- NET ASSETS 100.0% $7,691,009 ========== -------------- + 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.
37 -------------------------------------------------------------------------------- SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO
SHARES VALUE ------ ----------- COMMON STOCKS -- 100.7% AUTOMOBILES AND COMPONENTS -- 2.7% Harley-Davidson 1,350 $ 69,215 ----------- CAPITAL GOODS -- 4.2% General Electric 1,750 50,837 Honeywell International 1,600 56,368 ----------- 107,205 ----------- CHEMICALS -- 7.0% Dow Chemical 3,300 113,454 Praxair 1,100 62,667 ----------- 176,121 ----------- COMMERCIAL SERVICES AND SUPPLIES -- 1.5% Robert Half International* 1,400 32,620 Waste Management 200 5,210 ----------- 37,830 ----------- COMMUNICATIONS EQUIPMENT -- 7.4% Brocade Communications Systems* 1,800 31,464 CIENA* 4,300 17,996 Cisco Systems* 6,100 85,064 Lucent Technologies* 7,100 11,786 QUALCOMM* 800 21,988 Research In Motion* (Canada) 1,600 18,200 ----------- 186,498 ----------- COMPUTERS AND PERIPHERALS -- 2.5% Dell Computer* 800 20,932 International Business Machines 600 43,200 ----------- 64,132 ----------- CONSUMER DURABLES AND APPAREL -- 3.1% Mattel 1,500 31,620 Newell Rubbermaid 400 14,024 NIKE (Class B) 600 32,190 ----------- 77,834 ----------- CONSUMER STAPLES -- 3.3% Coca-Cola 1,500 84,000 ----------- FINANCIALS -- 5.3% AFLAC 1,600 $ 51,200 American International Group 800 54,584 Citigroup 700 27,125 ----------- 132,909 ----------- HEALTH CARE EQUIPMENT AND SERVICES -- 7.0% Laboratory Corp. of America Holdings* 900 41,085 Medtronic 2,200 94,270 Quest Diagnostics* 500 43,025 ----------- 178,380 ----------- HOTELS, RESTAURANTS AND LEISURE -- 6.9% Hilton Hotels 8,100 112,590 Starwood Hotels & Resorts Worldwide 1,900 62,491 ----------- 175,081 ----------- MEDIA -- 7.5% AOL Time Warner* 3,200 47,072 Clear Channel Communications* 1,600 51,232 Walt Disney 700 13,230 Interpublic Group of Companies 600 14,856 Viacom (Class B)* 1,400 62,118 ----------- 188,508 ----------- PHARMACEUTICALS AND BIOTECHNOLOGY -- 22.9% Abbot Laboratories 400 15,060 Allergan 300 20,025 Amgen* 1,700 71,204 Genentech* 1,300 43,550 IDEC Pharmaceuticals* 300 10,634 Johnson & Johnson 1,100 57,486 Lilly (Eli) 1,600 90,240 MedImmune* 1,200 31,674 Pfizer 3,950 138,250 Pharmacia 1,600 59,920 Wyeth 800 40,960 ----------- 579,003 -----------
38 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO (continued)
SHARES VALUE ------ ----------- RETAILING -- 4.8% Home Depot 1,200 $ 44,076 Wal-Mart Stores 1,400 77,014 ----------- 121,090 ----------- SEMICONDUCTOR EQUIPMENT AND PRODUCTS -- 6.4% Broadcom (Class A)* 600 10,521 Intel 4,200 76,755 Marvell Technology Group* 1,400 27,853 PMC-Sierra* 2,200 20,383 Texas Instruments 1,100 26,070 ----------- 161,582 ----------- SOFTWARE AND SERVICES -- 7.3% Microsoft* 2,000 109,260 Oracle* 1,500 14,212 SAP (ADRs) (Germany) 1,400 34,006 VERITAS Software* 1,300 25,721 ----------- 183,199 ----------- TELECOMMUNICATION SERVICES -- 0.4% SBC Communications 300 $ 9,150 ----------- TRANSPORTATION -- 0.5% United Parcel Service (Class B) 200 12,350 ----------- TOTAL INVESTMENTS (Cost $3,335,364) 2,544,087 OTHER ASSETS Less Liabilities -- (0.7)% (17,831) ----------- NET ASSETS -- 100.0% $2,526,256 ===========
-------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO
SHARES VALUE ------ ----------- COMMON STOCKS -- 101.5% AEROSPACE AND DEFENSE -- 10.2% Boeing 5,000 $ 225,000 Goodrich (B.F.) 8,000 218,560 United Technologies 3,500 237,650 ----------- 681,210 ----------- AUTOMOBILES AND COMPONENTS -- 3.2% Ford Motor 13,500 216,000 ----------- BANKS -- 11.1% Bank of New York 6,500 219,375 FleetBoston Financial 7,040 227,744 Washington Mutual 8,000 296,880 ----------- 743,999 ----------- CAPITAL GOODS -- 1.7% General Electric 4,000 116,200 ----------- CHEMICALS -- 6.7% Dow Chemical 6,500 $ 223,470 Praxair 4,000 227,880 ----------- 451,350 ----------- COMMUNICATIONS EQUIPMENT -- 2.4% Juniper Networks* 18,000 101,790 Lucent Technologies* 37,000 61,420 ----------- 163,210 ----------- COMPUTERS AND PERIPHERALS -- 3.2% International Business Machines 3,000 216,000 ----------- DIVERSIFIED FINANCIALS -- 9.2% Citigroup 5,000 193,750 Fannie Mae 3,000 221,250 J.P. Morgan Chase 6,000 203,520 ----------- 618,520 -----------
---------- * Non-income producing security. See Notes to Financial Statements. 39 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- PORTFOLIOS OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued)
SHARES VALUE ------ ----------- ELECTRIC UTILITIES -- 1.8% AES 21,710 $ 117,668 ----------- ENERGY -- 6.3% ChevronTexaco 2,310 204,435 Transocean Sedco Forex 7,000 218,050 ----------- 422,485 ----------- GAS UTILITIES -- 2.5% El Paso 8,100 166,941 ----------- HEALTH CARE EQUIPMENT AND SUPPLIES -- 5.9% Baxter International 4,000 177,800 Medtronic 5,000 214,250 ----------- 392,050 ----------- HOUSEHOLD PRODUCTS -- 3.3% Kimberly-Clark 3,500 217,000 ----------- INSURANCE -- 9.8% Allstate 6,500 240,370 St. Paul Companies 5,500 214,060 UNUMProvident 7,800 198,510 ----------- 652,940 ----------- MULTI-UTILITIES AND UNREGULATED POWER -- 2.2% Dynegy 21,000 151,200 ----------- PAPER AND FOREST PRODUCTS -- 6.5% Georgia-Pacific 8,000 $ 196,640 International Paper 5,500 239,690 ----------- 436,330 ----------- PHARMACEUTICALS -- 6.1% Bristol-Myers Squibb 8,000 205,600 Wyeth 3,900 199,680 ----------- 405,280 ----------- RETAILING -- 6.5% Costco Wholesale* 5,000 193,075 Radio Shack 8,000 240,480 ----------- 433,555 ----------- TOBACCO -- 2.9% Philip Morris 4,500 196,560 ----------- TOTAL INVESTMENTS -- 101.5% (Cost $7,462,142) 6,798,498 OTHER ASSETS LESS LIABILITIES -- (1.5)% (97,714) ----------- NET ASSETS -- 100.0% $6,700,784 ===========
-------------------------------------------------------------------------------- SELIGMAN SMALl-CAP VALUE PORTFOLIO
SHARES VALUE --------- ------------- COMMON STOCKS -- 101.0% AEROSPACE AND DEFENSE -- 2.7% Cubic 180,000 $ 4,266,000 ------------- CHEMICALS -- 10.6% Crompton 323,500 4,124,625 Minerals Technologies 70,000 3,452,400 NOVA Chemicals (Canada) 190,000 4,282,600 Olin 214,100 4,742,315 ------------- 16,601,940 ------------- COMMERCIAL SERVICES AND SUPPLIES -- 6.2% Cadmus Communications 219,650 $ 2,475,455 Korn/Ferry International 410,000 3,731,000 Pittston Brink's Group 146,272 3,510,528 ------------- 9,716,983 ------------- CONSUMER STAPLES -- 8.2% Bunge 180,000 3,798,000 Constellation Brands (Class B)* 130,000 4,160,000 Fresh Del Monte Produce 195,000 4,875,000 ------------- 12,833,000 -------------
--------- * Non-income producing security. See Notes to Financial Statements. 40 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (continued)
SHARES VALUE ------ ----------- CONTAINERS AND PACKAGING -- 4.8% BWAY* 245,000 $ 3,907,750 Smurfit-Stone Container* 230,000 3,545,450 ------------- 7,453,200 ------------- ENERGY -- 7.6% Equitable Resources 100,000 3,430,000 Smith International* 60,000 4,091,400 Universal Compression Holdings* 179,100 4,296,609 ------------- 11,818,009 ------------- FINANCIALS -- 9.2% Allmerica Financial 80,000 3,696,000 Berkley (W.R.) 60,000 3,300,000 Commercial Federal 130,000 3,770,000 PMI Group (The) 94,000 3,590,800 ------------- 14,356,800 ------------- HEALTH CARE EQUIPMENT AND SUPPLIES -- 2.4% Edwards Lifesciences* 160,000 3,712,000 ------------- HEALTH CARE PROVIDERS AND SERVICES -- 7.0% Apria Healthcare Group* 160,000 3,584,000 Omnicare 139,000 3,650,140 Oxford Health Plans* 80,000 3,716,800 ------------- 10,950,940 ------------- HOUSEHOLD DURABLES -- 5.4% Clayton Homes 140,000 2,212,000 Furniture Brands International* 90,000 2,722,500 Harman International Industries 70,000 3,447,500 ------------- 8,382,000 ------------- MACHINERY -- 6.8% Mueller Industries* 110,000 3,492,500 Navistar International 100,000 3,200,000 Stewart & Stevenson Services 220,000 3,903,900 ------------- 10,596,400 ------------- MEDIA -- 2.0% Reader's Digest Association 170,000 3,184,100 ------------- PAPER AND FOREST PRODUCTS -- 3.0% Bowater 85,000 $ 4,621,450 ------------- PHARMACEUTICALS AND BIOTECHNOLOGY -- 7.3% Enzon* 150,000 3,766,500 Eon Labs* 74,200 1,319,647 Pharmacopeia* 296,500 2,506,907 Protein Design Labs* 345,000 3,748,425 ------------- 11,341,479 ------------- REAL ESTATE -- 1.0% Innkeepers USA Trust 158,000 1,513,640 ------------- RETAILING -- 10.4% American Eagle Outfitters* 200,000 4,227,000 Fred's 102,187 3,720,118 Urban Outfitters* 140,000 4,855,200 Wet Seal (The) (Class A)* 142,500 3,467,025 ------------- 16,269,343 ------------- TECHNOLOGY HARDWARE AND EQUIPMENT -- 4.4% Agere Systems (Class A)* 1,600,000 2,240,000 Skyworks Solutions 199,300 1,107,112 Trimble Navigation* 231,000 3,579,345 ------------- 6,926,457 ------------- TRANSPORTATION -- 2.0% Continental Airlines* 200,000 3,156,000 ------------- TOTAL COMMON STOCKS (Cost $142,901,876) 157,699,741 REPURCHASE AGREEMENT -- 1.6% (Cost $2,500,000) 2,500,000 ------------- TOTAL INVESTMENTS -- 102.6% (Cost $145,401,876) 160,199,741 OTHER ASSETS LESS LIABILITIES -- (2.6)% (4,108,570) ------------- NET ASSETS -- 100.0% $156,091,171 =============
---------- * Non-income producing security. See Notes to Financial Statements. 41 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
SELIGMAN SELIGMAN SELIGMAN SELIGMAN CASH COMMON COMMUNICATIONS SELIGMAN SELIGMAN CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER GLOBAL GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- ----------- ------------ ----------------- ------------ --------------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings $ 20,254,393 $ -- $18,998,257 $ 77,037,406 $10,181,479 $ 3,378,956 Short-term holdings -- 8,592,288 -- 8,400,000 490,000 -- ------------- ----------- ------------ ----------------- ------------ --------------- Total Investments 20,254,393 8,592,288 18,998,257 85,437,406 10,671,479 3,378,956 Cash* -- 78,517 -- 65,423 5,039 279,306 Receivable for securities sold 490,492 -- 176,213 2,186,266 48,994 66,612 Receivable from associated companies 18,481 -- -- -- -- -- Dividends and interest receivable 4,559 287 20,904 7,275 1,466 5,841 Receivable for Capital Stock sold 592 15,710 250 2,539 1,073 699 Other 41 7,138 33 177 11 7 ------------- ----------- ------------ ----------------- ------------ --------------- TOTAL ASSETS 20,768,558 8,693,940 19,195,657 87,699,086 10,728,062 3,731,421 ------------- ----------- ------------ ----------------- ------------ --------------- LIABILITIES: Payable for securities purchased 335,260 -- -- 1,747,288 85,551 38,125 Bank overdraft 57,176 -- 39,461 -- -- -- Payable for Capital Stock redeemed 37,869 583 54,543 70,866 90,563 936 Payable to the Manager 7,159 4,758 6,608 56,996 6,671 3,360 Unrealized depreciation on forward currency contracts -- -- -- -- -- 52 Accrued expenses and other 30,874 18,535 19,889 73,844 19,292 12,791 ------------- ----------- ------------ ----------------- ------------ --------------- TOTAL LIABILITIES 468,338 23,876 120,501 1,948,994 202,077 55,264 ------------- ----------- ------------ ----------------- ------------ --------------- NET ASSETS $ 20,300,220 $ 8,670,064 $19,075,156 $ 85,750,092 $10,525,985 $ 3,676,157 ============= =========== ============ ================= ============ =============== COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par $ 2,124 $ 8,669 $ 1,996 $ 9,547 $ 904 $ 1,041 Additional paid-in-capital 33,668,048 8,659,129 21,519,269 145,403,082 11,544,476 5,562,801 Undistributed/accumulated net investment income (loss) (65,670) -- 239,273 (409,666) (53,685) (3,345) Undistributed/accumulated net realized gain (loss) (12,164,128) 2,266 (1,944,183) (35,750,080) (1,083,621) (1,601,124) Net unrealized appreciation (depreciation) of investments (1,140,154) -- (741,199) (23,502,791) 117,911 (426,940) Net unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts -- -- -- -- -- 143,724 ------------- ----------- ------------ ----------------- ------------ --------------- NET ASSETS $ 20,300,220 $ 8,670,064 $19,075,156 $ 85,750,092 $10,525,985 $ 3,676,157 ============= =========== ============ ================= ============ =============== Class 1 $ 16,873,087 $ 8,670,064 $19,075,156 $ 73,247,340 $10,525,985 $ 3,676,157 Class 2 $ 3,427,133 $ 12,502,752 SHARES OF CAPITAL STOCK OUTSTANDING Class 1 1,764,206 8,669,456 1,995,525 8,148,400 904,006 1,040,651 Class 2 359,635 1,399,057 NET ASSET VALUE PER SHARE Class 1 $ 9.56 $ 1.00 $ 9.56 $ 8.99 $ 11.64 $ 3.53 ============= =========== ============ ================= ============ =============== Class 2 $ 9.53 $ 8.94 ============= ================= ---------- * Includes foreign currencies as follows: $ -- $ -- $ -- $ -- $ -- $ 34,511 ** Includes amounts from prior year to be distributed in 2002, comprising $1,096,967 of net short-term gain distributable as or income for tax purposes, and $504,378 of net long-term gain. See Notes to Financial Statements.
42 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- June 30, 2002 --------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN SELIGMAN GLOBAL SMALLER GLOBAL HIGH-YIELD SELIGMAN INTERNATIONAL COMPANIES TECHNOLOGY BOND INCOME GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------------- ------------- ------------- ----------- --------------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings $ 8,239,531 $ 14,070,785 $ 9,770,076 $3,593,123 $ 4,086,034 Short-term holdings -- -- -- -- -- ---------------- ------------- ------------- ----------- --------------- Total Investments 8,239,531 14,070,785 9,770,076 3,593,123 4,086,034 Cash* 437,786 1,301,951 272,149 234,395 326,680 Receivable for securities sold 58,178 184,537 231,393 41,160 83,567 Receivable from associated companies -- -- -- 570 -- Dividends and interest receivable 12,029 5,627 204,702 26,437 12,948 Receivable for Capital Stock sold 8,036 1,459 1,578 -- 3,148 Other 14 29 16 6 8 ---------------- ------------- ------------- ----------- --------------- TOTAL ASSETS 8,755,574 15,564,388 10,479,914 3,895,691 4,512,385 ---------------- ------------- ------------- ----------- --------------- LIABILITIES: Payable for securities purchased 59,694 37,487 177,277 24,527 71,924 Bank overdraft -- -- -- -- -- Payable for Capital Stock redeemed 22,595 50,835 14,612 48,589 3,911 Payable to the Manager 1,729 10,209 4,678 -- 4,546 Unrealized depreciation on forward currency contracts -- 83 -- -- 105 Accrued expenses and other 30,553 36,024 14,894 15,379 14,876 ---------------- ------------- ------------- ----------- --------------- TOTAL LIABILITIES 114,571 134,638 211,461 88,495 95,362 ---------------- ------------- ------------- ----------- --------------- NET ASSETS $ 8,641,003 $ 15,429,750 $ 10,268,453 $3,807,196 $ 4,417,023 ================ ============= ============= =========== =============== COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par $ 898 $ 1,546 $ 1,780 $ 452 $ 565 Additional paid-in-capital 10,109,879 30,677,494 22,141,574 4,289,100 7,271,386 Undistributed/accumulated net investment income (loss) (29,169) (134,819) 1,955,987 195,972 6,524 Undistributed/accumulated net realized gain (loss) (1,254,210) (11,321,101) (13,622,310) (576,741) (2,963,469) Net unrealized appreciation (depreciation) of investments (398,465) (4,185,072) (208,578) (101,587) (136,795) Net unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts 212,070 391,702 -- -- 238,812 ---------------- ------------- ------------- ----------- --------------- NET ASSETS $ 8,641,003 $ 15,429,750 $ 10,268,453 $3,807,196 $ 4,417,023 ================ ============= ============= =========== =============== Class 1 $ 8,641,003 $ 13,424,405 $ 10,268,453 $3,807,196 $ 4,417,023 Class 2 $ 2,005,345 SHARES OF CAPITAL STOCK OUTSTANDING Class 1 897,693 1,344,910 1,779,647 452,338 564,847 Class 2 201,534 NET ASSET VALUE PER SHARE Class 1 $ 9.63 $ 9.98 $ 5.77 $ 8.42 $ 7.82 ================ ============= ============= =========== =============== Class 2 $ 9.95 ============= ---------- * Includes foreign currencies as follows: $ 76,690 $ 1,001,440 $ -- $ -- $ 31,668 ** Includes amounts from prior year to be distributed in 2002, comprising $1,096,967 of net short-term gain distributable as or income for tax purposes, and $504,378 of net long-term gain. See Notes to Financial Statements.
SELIGMAN INVESTMENT SELIGMAN SELIGMAN SELIGMAN GRADE LARGE-CAP LARGE-CAP SMALL-CAP FIXED INCOME GROWTH VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------------- ------------ ----------- ------------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings $ 6,379,454 $ 2,544,087 $6,798,498 $157,699,741 Short-term holdings 1,220,000 -- -- 2,500,000 -------------- ------------ ----------- ------------- Total Investments 7,599,454 2,544,087 6,798,498 160,199,741 Cash* 6,780 -- -- 100,318 Receivable for securities sold -- 73,413 -- -- Receivable from associated companies -- -- -- -- Dividends and interest receivable 92,735 1,909 15,449 51,867 Receivable for Capital Stock sold 7,769 2,824 3,074 79,953 Other 8 6 7 38 -------------- ------------ ----------- ------------- TOTAL ASSETS 7,706,746 2,622,239 6,817,028 160,431,917 -------------- ------------ ----------- ------------- LIABILITIES: Payable for securities purchased -- 9,307 -- 1,111,518 Bank overdraft -- 63,265 98,731 -- Payable for Capital Stock redeemed 711 13,585 4,385 3,028,292 Payable to the Manager 2,510 1,327 4,659 130,888 Unrealized depreciation on forward currency contracts -- -- -- -- Accrued expenses and other 12,516 8,499 8,469 70,048 -------------- ------------ ----------- ------------- TOTAL LIABILITIES 15,737 95,983 116,244 4,340,746 -------------- ------------ ----------- ------------- NET ASSETS $ 7,691,009 $ 2,526,256 $6,700,784 $156,091,171 ============== ============ =========== ============= COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par $ 728 $ 465 $ 759 $ 12,161 Additional paid-in-capital 7,338,460 5,582,068 7,588,077 141,773,147 Undistributed/accumulated net investment income (loss) 513,136 (9,788) 103,085 (363,452) Undistributed/accumulated net realized gain (loss) (272,745) (2,255,212) (327,493) (128,550)** Net unrealized appreciation (depreciation) of investments 111,430 (791,277) (663,644) 14,797,865 Net unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts -- -- -- -- -------------- ------------ ----------- ------------- NET ASSETS $ 7,691,009 $ 2,526,256 $6,700,784 $156,091,171 ============== ============ =========== ============= Class 1 $ 7,691,009 $ 2,526,256 $6,700,784 $146,814,270 Class 2 $ 9,276,901 SHARES OF CAPITAL STOCK OUTSTANDING Class 1 728,187 465,252 758,547 11,437,329 Class 2 723,471 NET ASSET VALUE PER SHARE Class 1 $ 10.56 $ 5.43 $ 8.83 $ 12.84 ============== ============ =========== ============= Class 2 $ 12.82 ============= ---------- * Includes foreign currencies as follows: $ -- $ -- $ -- $ -- ** Includes amounts from prior year to be distributed in 2002, comprising $1,096,967 of net short-term gain distributable as or income for tax purposes, and $504,378 of net long-term gain. See Notes to Financial Statements.
43 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS (unaudited) --------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN COMMUNICATIONS SELIGMAN CASH COMMON AND SELIGMAN SELIGMAN CAPITAL MANAGEMENT STOCK INFORMATION FRONTIER GLOBAL GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ----------- ------------ ---------------- ------------ --------------- INVESTMENT INCOME: Dividends* $ 31,819 $ -- $ 142,889 $ 51,014 $ 13,410 $ 34,227 Interest 3,134 88,272 714 76,722 2,805 1,070 ------------ ----------- ------------ ---------------- ------------ --------------- TOTAL INVESTMENT INCOME 34,953 88,272 143,603 127,736 16,215 35,297 ------------ ----------- ------------ ---------------- ------------ --------------- EXPENSES: Management fee 49,527 20,293 44,308 419,590 44,729 20,658 Shareholder account services 13,035 -- -- 26,913 -- -- Custody and related services 8,716 2,687 4,904 25,432 7,818 11,702 Shareholder reports and communications 7,636 905 2,160 14,722 5,714 709 Auditing and legal fees 7,083 5,217 6,061 19,974 5,269 3,496 Distribution and service fees - Class 2 4,757 -- -- 18,993 -- -- Directors' fees and expenses 2,085 1,932 2,035 2,953 2,184 2,132 Registration 1,070 -- 1,285 4,240 -- -- Interest expense -- -- -- -- -- -- Miscellaneous 1,205 4,332 690 317 513 400 ------------ ----------- ------------ ---------------- ------------ --------------- TOTAL EXPENSES BEFORE REIMBURSEMENT 95,114 35,366 61,443 533,134 66,227 39,097 Reimbursement of expenses -- -- -- -- -- (10,178) ------------ ----------- ------------ ---------------- ------------ --------------- TOTAL EXPENSES AFTER REIMBURSEMENT 95,114 35,366 61,443 533,134 66,227 28,919 ------------ ----------- ------------ ---------------- ------------ --------------- NET INVESTMENT INCOME (LOSS) (60,161) 52,906 82,160 (405,398) (50,012) 6,378 ------------ ----------- ------------ ---------------- ------------ --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized loss on investments (2,634,808) -- (107,118) (9,549,049) (575,131) (226,642) Net realized loss from foreign currency transactions -- -- -- -- -- (24,160) Net change in unrealized appreciation/depreciation of investments (3,590,057) -- (2,626,043) (26,237,465) (781,162) (484,335) Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts -- -- -- -- -- 183,384 ------------ ----------- ------------ ---------------- ------------ --------------- NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (6,224,865) -- (2,733,161) (35,786,514) (1,356,293) (551,753) ------------ ----------- ------------ ---------------- ------------ --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(6,285,026) $ 52,906 $(2,651,001) $ (36,191,912) $(1,406,305) $ (545,375) ============ =========== ============ ================ ============ =============== ---------- * Net of foreign tax withheld as follows: $ -- $ -- $ -- $ -- $ -- $ 4,092 See Notes to Financial Statements.
44 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- For the Six Months Ended June 30, 2002 --------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN SELIGMAN GLOBAL SMALLER GLOBAL HIGH-YIELD SELIGMAN INTERNATIONAL COMPANIES TECHNOLOGY BOND INCOME GROWTH PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------------- ------------ ------------ ----------- --------------- INVESTMENT INCOME: Dividends* $ 37,095 $ 22,496 $ 44,905 $ 17,156 $ 54,699 Interest 2,031 7,312 559,467 44,394 178 ---------------- ------------ ------------ ----------- --------------- TOTAL INVESTMENT INCOME 39,126 29,808 604,372 61,550 54,877 ---------------- ------------ ------------ ----------- --------------- EXPENSES: Management fee 46,675 100,171 30,356 8,429 22,707 Shareholder account services -- 13,180 -- -- -- Custody and related services 46,108 32,565 13,041 10,420 12,824 Shareholder reports and communications 1,460 7,150 1,712 711 736 Auditing and legal fees 4,602 5,934 5,068 3,303 3,658 Distribution and service fees - Class 2 -- 2,005 -- -- -- Directors' fees and expenses 2,095 2,649 2,157 1,901 1,928 Registration -- 2,113 241 565 -- Interest expense -- -- -- -- -- Miscellaneous 476 778 488 380 397 ---------------- ------------ ------------ ----------- --------------- TOTAL EXPENSES BEFORE REIMBURSEMENT 101,416 166,545 53,063 25,709 42,250 Reimbursement of expenses (36,080) (24,309) -- (5,691) (10,465) ---------------- ------------ ------------ ----------- --------------- TOTAL EXPENSES AFTER REIMBURSEMENT 65,336 142,236 53,063 20,018 31,785 ---------------- ------------ ------------ ----------- --------------- NET INVESTMENT INCOME (LOSS) (26,210) (112,428) 551,309 41,532 23,092 ---------------- ------------ ------------ ----------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized loss on investments (363,998) (1,744,981) (2,149,711) (161,605) (472,944) Net realized loss from foreign currency transactions (142,888) (42,868) -- -- (9,878) Net change in unrealized appreciation/depreciation of investments (587,361) (3,581,992) 948,987 (174,931) 16,937 Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts 466,177 525,661 -- -- 308,727 ---------------- ------------ ------------ ----------- --------------- NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (628,070) (4,844,180) (1,200,724) (336,536) (157,158) ---------------- ------------ ------------ ----------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (654,280) $(4,956,608) $ (649,415) $ (295,004) $ (134,066) ================ ============ ============ =========== =============== ---------- * Net of foreign tax withheld as follows:$ 3,467 $ 2,794 $ -- $ -- $ 7,516 See Notes to Financial Statements.
SELIGMAN INVESTMENT SELIGMAN SELIGMAN SELIGMAN GRADE LARGE-CAP LARGE-CAP SMALL-CAP FIXED INCOME GROWTH VALUE VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------------- ------------ ------------ ------------ INVESTMENT INCOME: Dividends* $ -- $ 10,706 $ 73,960 $ 408,409 Interest 184,859 49 58 33,827 -------------- ------------ ------------ ------------ TOTAL INVESTMENT INCOME 184,859 10,755 74,018 442,236 -------------- ------------ ------------ ------------ EXPENSES: Management fee 14,489 11,705 30,282 679,416 Shareholder account services -- -- -- 18,719 Custody and related services 5,829 1,922 1,398 17,094 Shareholder reports and communications 1,254 1,135 1,429 17,805 Auditing and legal fees 4,176 3,348 4,072 39,352 Distribution and service fees - Class 2 -- -- -- 7,113 Directors' fees and expenses 1,929 2,350 2,315 3,279 Registration 168 -- -- 1,836 Interest expense -- -- -- 17,889 Miscellaneous 771 930 750 1,274 -------------- ------------ ------------ ------------ TOTAL EXPENSES BEFORE REIMBURSEMENT 28,616 21,390 40,246 803,777 Reimbursement of expenses -- (2,158) -- -- -------------- ------------ ------------ ------------ TOTAL EXPENSES AFTER REIMBURSEMENT 28,616 19,232 40,246 803,777 -------------- ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) 156,243 (8,477) 33,772 (361,541) -------------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized loss on investments (18,412) (461,743) (111,241) (1,729,895) Net realized loss from foreign currency transactions -- -- -- -- Net change in unrealized appreciation/depreciation of investments 86,268 (567,757) (1,173,432) (2,790,282) Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts -- -- -- -- -------------- ------------ ------------ ------------ NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS 67,856 (1,029,500) (1,284,673) (4,520,177) -------------- ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 224,099 $(1,037,977) $(1,250,901) $(4,881,718) ============== ============ ============ ============ ---------- * Net of foreign tax withheld as follows: $ -- $ 28 $ -- $ 3,235 See Notes to Financial Statements.
45 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN CAPITAL CASH MANAGEMENT COMMON STOCK PORTFOLIO PORTFOLIO PORTFOLIO ------------------------ ------------------------------ ---------------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ------------ ------------- -------------- -------------- ------------ ------------- OPERATIONS: Net Investment income (loss) $ (60,161) $ (100,165) $ 52,906 $ 562,209 $ 82,160 $ 163,160 Net realized gain (loss) on investments (2,634,808) (9,249,754) -- -- (107,118) (1,188,028) Net realized gain (loss) from foreign currency transactions -- -- -- -- -- -- Net change in unrealized appreciation/depreciation of investments (3,590,057) 2,958,885 -- -- (2,626,043) (2,843,798) 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 (6,285,026) (6,391,034) 52,906 562,209 (2,651,001) (3,868,666) ------------ ------------- -------------- -------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- (28,303) (52,906) (562,209) -- (278,079) Net realized short-term gain on investments:* Class 1 -- (4,599,251) -- -- -- (343,284) Class 2 -- (709,790) -- -- -- -- Net realized long-term gain on investments: Class 1 -- (5,091,018) -- -- -- (2,472,028) Class 2 -- (785,683) -- -- -- -- ------------ ------------- -------------- -------------- ------------ ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- (11,214,045) (52,906) (562,209) -- (3,093,391) ------------ ------------- -------------- -------------- ------------ ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1 666,579 3,441,538 5,475,133 112,248,040 2,131,629 26,046,078 Class 2 966,264 2,930,647 -- -- -- -- Shares issued in payment of: Dividends -- Class 1 -- 28,303 52,906 562,209 -- 278,079 Gain distributions: Class 1 -- 9,690,269 -- -- -- 2,815,312 Class 2 -- 1,495,473 -- -- -- -- ------------ ------------- -------------- -------------- ------------ ------------- Total 1,632,843 17,586,230 5,528,039 112,810,249 2,131,629 29,139,469 ------------ ------------- -------------- -------------- ------------ ------------- Cost of shares redeemed: Class 1 (2,845,243) (10,152,891) (9,069,137) (112,917,253) (4,161,338) (31,159,369) Class 2 (344,147) (393,286) -- -- -- -- ------------ ------------- -------------- -------------- ------------ ------------- Total (3,189,390) (10,546,177) (9,069,137) (112,917,253) (4,161,338) (31,159,369) ------------ ------------- -------------- -------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (1,556,547) 7,040,053 (3,541,098) (107,004) (2,029,709) (2,019,900) ------------ ------------- -------------- -------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS (7,841,573) (10,565,026) (3,541,098) (107,004) (4,680,710) (8,981,957) NET ASSETS: Beginning of period 28,141,793 38,706,819 12,211,162 12,318,166 23,755,866 32,737,823 ------------ ------------- -------------- -------------- ------------ ------------- END OF PERIOD $20,300,220 $ 28,141,793 $ 8,670,064 $ 12,211,162 $19,075,156 $ 23,755,866 ============ ============= ============== ============== ============ =============
------------- * For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements. 46 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND SELIGMAN FRONTIER INFORMATION PORTFOLIO PORTFOLIO ------------------------------------------ ---------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 ----------------------- ------------------- ------------ ------------- OPERATIONS: Net Investment income (loss) $ (405,398) $ (661,649) $ (50,012) $ (54,239) Net realized gain (loss) on investments (9,549,049) (18,830,147) (575,131) (437,422) Net realized gain (loss) from foreign currency transactions -- -- -- -- Net change in unrealized appreciation/depreciation of investments (26,237,465) 23,536,146 (781,162) (892,119) 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 (36,191,912) 4,044,350 (1,406,305) (1,383,780) ----------------------- ------------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- -- -- -- Net realized short-term gain on investments:* Class 1 -- -- -- -- Class 2 -- -- -- -- Net realized long-term gain on investments: Class 1 -- (21,538,858) -- (910,887) Class 2 -- (3,112,342) -- -- ----------------------- ------------------- ------------ ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- (24,651,200) -- (910,887) ----------------------- ------------------- ------------ ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1 6,581,989 24,384,089 1,810,162 22,190,724 Class 2 10,364,954 23,787,944 -- -- Shares issued in payment of: Dividends -- Class 1 -- -- -- -- Gain distributions: Class 1 -- 21,538,858 -- 910,887 Class 2 -- 3,112,342 -- -- ----------------------- ------------------- ------------ ------------- Total 16,946,943 72,823,233 1,810,162 23,101,611 ----------------------- ------------------- ------------ ------------- Cost of shares redeemed: Class 1 (15,603,273) (44,047,037) (3,051,692) (24,644,354) Class 2 (9,362,063) (13,932,359) -- -- ----------------------- ------------------- ------------ ------------- Total (24,965,336) (57,979,396) (3,051,692) (24,644,354) ----------------------- ------------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (8,018,393) 14,843,837 (1,241,530) (1,542,743) ----------------------- ------------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS (44,210,305) (5,763,013) (2,647,835) (3,837,410) NET ASSETS: Beginning of period 129,960,397 135,723,410 13,173,820 17,011,230 ----------------------- ------------------- ------------ ------------- END OF PERIOD $ 85,750,092 $ 129,960,397 $10,525,985 $ 13,173,820 ======================= =================== ============ =============
------------- * For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements. SELIGMAN PORTFOLIOS, INC.
SELIGMAN SELIGMAN GLOBAL GROWTH GLOBAL SMALLER PORTFOLIO COMPANIES PORTFOLIO ----------------------------------- ------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 ------------ --------------------- ------------ ------------ OPERATIONS: Net Investment income (loss) $ 6,378 $ 7,927 $ (26,210) $ (56,596) Net realized gain (loss) on investments (226,642) (1,230,578) (363,998) (243,212) Net realized gain (loss) from foreign currency transactions (24,160) (63,730) (142,888) (476,193) Net change in unrealized appreciation/depreciation of investments (484,335) (102,735) (587,361) (1,509,428) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts 183,384 (165,513) 466,177 140,094 ------------ --------------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (545,375) (1,554,629) (654,280) (2,145,335) ------------ --------------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- -- -- -- Net realized short-term gain on investments:* Class 1 -- (421,269) -- -- Class 2 -- -- -- -- Net realized long-term gain on investments: Class 1 -- (2,661,546) -- (1,508,230) Class 2 -- -- -- -- ------------ --------------------- ------------ ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- (3,082,815) -- (1,508,230) ------------ --------------------- ------------ ------------ CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1 1,062,851 4,467,914 2,048,435 5,268,951 Class 2 -- -- -- -- Shares issued in payment of: Dividends -- Class 1 -- -- -- -- Gain distributions: Class 1 -- 3,082,815 -- 1,508,230 Class 2 -- -- -- -- ------------ --------------------- ------------ ------------ Total 1,062,851 7,550,729 2,048,435 6,777,181 ------------ --------------------- ------------ ------------ Cost of shares redeemed: Class 1 (1,500,287) (6,602,136) (2,770,588) (7,415,944) Class 2 -- -- -- -- ------------ --------------------- ------------ ------------ Total (1,500,287) (6,602,136) (2,770,588) (7,415,944) ------------ --------------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (437,436) 948,593 (722,153) (638,763) ------------ --------------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (982,811) (3,688,851) (1,376,433) (4,292,328) NET ASSETS: Beginning of period 4,658,968 8,347,819 10,017,436 14,309,764 ------------ --------------------- ------------ ------------ END OF PERIOD $ 3,676,157 $ 4,658,968 $ 8,641,003 $10,017,436 ============ ===================== ============ ============
------------- * For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements. 47 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
SELIGMAN SELIGMAN SELIGMAN GLOBAL TECHNOLOGY HIGH-YIELD BOND INCOME PORTFOLIO PORTFOLIO PORTFOLIO ---------------------------- --------------------------- --------------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ------------- ------------- ------------ ------------- ------------ ------------ OPERATIONS: Net Investment income (loss) $ (112,428) $ (204,723) $ 551,309 $ 1,408,551 $ 41,532 $ 160,518 Net realized gain (loss) on investments (1,744,981) (8,298,427) (2,149,711) (6,794,756) (161,605) (151,802) Net realized gain (loss) from foreign currency transactions (42,868) (219,215) -- -- -- -- Net change in unrealized appreciation/depreciation of investments (3,581,992) 2,684,661 948,987 3,266,289 (174,931) (111,133) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts 525,661 (628,320) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (4,956,608) (6,666,024) (649,415) (2,119,916) (295,004) (102,417) ------------- ------------- ------------ ------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- -- -- (2,259,945) -- (214,337) Net realized short-term gain on investments:* Class 1 -- (33,491) -- -- -- -- Class 2 -- (5,773) -- -- -- -- Net realized long-term gain on investments: Class 1 -- (3,116,989) -- -- -- -- Class 2 -- (537,287) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- (3,693,540) -- (2,259,945) -- (214,337) ------------- ------------- ------------ ------------- ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares: Class 1 3,436,522 8,770,914 3,355,780 11,738,568 766,089 1,800,250 Class 2 5,399,812 2,622,848 -- -- -- -- Shares issued in payment of: Dividends -- Class 1 -- -- -- 2,259,945 -- 214,337 Gain distributions: Class 1 -- 3,150,480 -- -- -- -- Class 2 -- 543,060 -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------ Total 8,836,334 15,087,302 3,355,780 13,998,513 766,089 2,014,587 ------------- ------------- ------------ ------------- ------------ ------------ Cost of shares redeemed: Class 1 (4,307,205) (9,763,132) (4,947,506) (12,189,154) (1,122,676) (2,878,577) Class 2 (5,894,858) (1,982,091) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------ Total (10,202,063) (11,745,223) (4,947,506) (12,189,154) (1,122,676) (2,878,577) ------------- ------------- ------------ ------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (1,365,729) 3,342,079 (1,591,726) 1,809,359 (356,587) (863,990) ------------- ------------- ------------ ------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (6,322,337) (7,017,485) (2,241,141) (2,570,502) (651,591) (1,180,744) NET ASSETS: Beginning of period 21,752,087 28,769,572 12,509,594 15,080,096 4,458,787 5,639,531 ------------- ------------- ------------ ------------- ------------ ------------ END OF PERIOD $ 15,429,750 $ 21,752,087 $10,268,453 $ 12,509,594 $ 3,807,196 $ 4,458,787 ============= ============= ============ ============= ============ ============ ------------- * For tax purposes, these distributions are considered ordinary income. ** The Portfolio began offering Class 2 shares on May 1, 2001. See Notes to Financial Statements.
48 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
SELIGMAN SELIGMAN INVESTMENT GRADE SELIGMAN INTERNATIONAL GROWTH FIXED INCOME LARGE-CAP GROWTH PORTFOLIO PORTFOLIO PORTFOLIO ------------------------------- ------------------------- --------------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 --------------- -------------- ------------ ------------ ------------ ------------ OPERATIONS: Net Investment income (loss) $ 23,092 $ 19,843 $ 156,243 $ 363,537 $ (8,477) $ (1,542) Net realized gain (loss) on investments (472,944) (1,170,348) (18,412) 88,103 (461,743) (1,581,484) Net realized gain (loss) from foreign currency transactions (9,878) (63,653) -- -- -- -- Net change in unrealized appreciation/depreciation of investments 16,937 (237,497) 86,268 (110,694) (567,757) 570,437 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts 308,727 (254,737) -- -- -- -- --------------- -------------- ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (134,066) (1,706,392) 224,099 340,946 (1,037,977) (1,012,589) --------------- -------------- ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- -- -- (349,249) -- (6,132) Net realized short-term gain on investments:* Class 1 -- -- -- -- -- (194,797) Class 2 -- -- -- -- -- -- Net realized long-term gain on investments: Class 1 -- -- -- -- -- (201,400) Class 2 -- -- -- -- -- -- --------------- -------------- ------------ ------------ ------------ ------------ DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- -- -- (349,249) -- (402,329) --------------- -------------- ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares: Class 1 1,168,045 27,379,387 1,841,603 5,886,747 1,234,826 3,188,503 Class 2 -- -- -- -- -- -- Shares issued in payment of: Dividends -- Class 1 -- -- -- 349,249 -- 6,132 Gain distributions: Class 1 -- -- -- -- -- 396,197 Class 2 -- -- -- -- -- -- --------------- -------------- ------------ ------------ ------------ ------------ Total 1,168,045 27,379,387 1,841,603 6,235,996 1,234,826 3,590,832 --------------- -------------- ------------ ------------ ------------ ------------ Cost of shares redeemed: Class 1 (1,410,044) (28,029,388) (1,477,273) (5,607,732) (1,600,564) (3,501,157) Class 2 -- -- -- -- -- -- --------------- -------------- ------------ ------------ ------------ ------------ Total (1,410,044) (28,029,388) (1,477,273) (5,607,732) (1,600,564) (3,501,157) --------------- -------------- ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (241,999) (650,001) 364,330 628,264 (365,738) 89,675 --------------- -------------- ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS (376,065) (2,356,393) 588,429 619,961 (1,403,715) (1,325,243) NET ASSETS: Beginning of period 4,793,088 7,149,481 7,102,580 6,482,619 3,929,971 5,255,214 --------------- -------------- ------------ ------------ ------------ ------------ END OF PERIOD $ 4,417,023 $ 4,793,088 $ 7,691,009 $ 7,102,580 $ 2,526,256 $ 3,929,971 =============== ============== ============ ============ ============ ============ ------------- * For tax purposes, these distributions are considered ordinary income. ** The Portfolio began offering Class 2 shares on May 1, 2001. See Notes to Financial Statements.
SELIGMAN SELIGMAN LARGE-CAP SMALL-CAP VALUE PORTFOLIO VALUE PORTFOLIO** ------------------------------------- ----------------------------- SIX SIX MONTHS MONTHS ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 ----------------- ------------------- ------------- ------------- OPERATIONS: Net Investment income (loss) $ 33,772 $ 72,256 $ (361,541) $ (153,209) Net realized gain (loss) on investments (111,241) (211,612) (1,729,895) 1,998,203 Net realized gain (loss) from foreign currency transactions -- -- -- -- Net change in unrealized appreciation/depreciation of investments (1,173,432) (377,822) (2,790,282) 15,045,255 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 (1,250,901) (517,178) (4,881,718) 16,890,249 ----------------- ------------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1* -- (80,066) -- -- Net realized short-term gain on investments:* Class 1 -- (24,020) -- (230,278) Class 2 -- -- -- (10,167) Net realized long-term gain on investments: Class 1 -- (15,285) -- -- Class 2 -- -- -- -- ----------------- ------------------- ------------- ------------- DECREASE IN NET ASSETS FROM DISTRIBUTIONS -- (119,371) -- (240,445) ----------------- ------------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares: Class 1 2,978,768 8,351,407 59,342,286 88,823,639 Class 2 -- -- 7,060,278 7,248,910 Shares issued in payment of: Dividends -- Class 1 -- 80,066 -- -- Gain distributions: Class 1 -- 39,305 -- 230,278 Class 2 -- -- -- 10,167 ----------------- ------------------- ------------- ------------- Total 2,978,768 8,470,778 66,402,564 96,312,994 ----------------- ------------------- ------------- ------------- Cost of shares redeemed: Class 1 (2,735,044) (6,182,781) (8,109,883) (21,634,280) Class 2 -- -- (2,588,203) (2,554,826) ----------------- ------------------- ------------- ------------- Total (2,735,044) (6,182,781) (10,698,086) (24,189,106) ----------------- ------------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 243,724 2,287,997 55,704,478 72,123,888 ----------------- ------------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (1,007,177) 1,651,448 50,822,760 88,773,692 NET ASSETS: Beginning of period 7,707,961 6,056,513 105,268,411 16,494,719 ----------------- ------------------- ------------- ------------- END OF PERIOD $ 6,700,784 $ 7,707,961 $156,091,171 $105,268,411 ================= =================== ============= ============= ------------- * For tax purposes, these distributions are considered ordinary income. ** The Portfolio began offering Class 2 shares on May 1, 2001. See Notes to Financial Statements.
49 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. ORGANIZATION -- Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management investment company consisting of 15 separate portfolios (the "Portfolios"): Seligman Capital Portfolio ("Capital Portfolio"), Seligman Cash Management Portfolio ("Cash Management Portfolio"), Seligman Common Stock Portfolio ("Common Stock Portfolio"), Seligman Communications and Information Portfolio ("Communications and Information Portfolio"), Seligman 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 Investment Grade Fixed Income Portfolio, formerly Seligman Bond Portfolio ("Investment Grade 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 -- The Fund offers two classes of shares. Class 1 shares do not pay a distribution and service fee ("12b-1 fee"). Class 2 shares pay an annual 12b-1 fee of up to 0.25% of average daily net assets. 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 Portfolio's 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 primarily be traded 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 short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios' books, and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of portfolio securities and other foreign currency denominated assets and liabilities at period end, resulting from changes in exchange rates. The value of cash held in foreign currencies at June 30, 2002, was substantially the same as its cost. 50 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- The Portfolios separate that portion of the results of operations resulting from changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held in the portfolios. Similarly, the Portfolios separate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period. c. FORWARD CURRENCY CONTRACTS -- The Seligman International Portfolios may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings, or other amounts receivable or payable in foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. The contracts are valued daily at current or forward 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 reporting 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 country's 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. 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 six months ended June 30, 2002, 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 June 30, 2002 matured pursuant to their terms. h. DISTRIBUTIONS TO SHAREHOLDERS -- The treatment for financial reporting 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 - Purchase and sales of portfolio securities, excluding US Government obligations and short-term investments, for the six months ended June 30, 2002, were as follows:
PORTFOLIO PURCHASES SALES PORTFOLIO PURCHASES SALES ------------------------ ----------- --------------------- ---------------- ----------- ----------- Capital $16,750,499 $ 18,053,517 High-Yield Bond $ 9,993,949 $10,772,565 Common Stock 15,364,319 17,013,080 Income 3,181,289 3,817,640 Communications and International Growth 4,387,114 4,854,552 Information 50,212,099 53,018,347 Investment Grade 5,123,960 4,391,220 Frontier 5,326,729 6,622,209 Large-Cap Growth 1,326,252 1,551,431 Global Growth 2,866,233 3,441,063 Large-Cap Value 1,143,814 581,960 Global Smaller Companies 4,686,002 5,474,156 Small-Cap Value 66,749,588 21,555,707 Global Technology 13,210,563 12,830,815
For the six months ended June 30, 2002, purchases and sales of US Government obligations were $1,288,867 and $1,054,720, respectively, for the Income Portfolio, and $3,087,413 and $3,762,209, respectively, for the Investment Grade Portfolio. Identified cost of investments sold is used for both financial reporting and federal income tax purposes. 51 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued) -------------------------------------------------------------------------------- At June 30, 2002, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes, except the Communications and Information Portfolio had a tax basis cost of $109,645,253, due to the tax deferral of losses on wash sales in the amount of $705,056. The tax basis gross unrealized appreciation and depreciation of portfolio securities, including the effects of foreign currency translations, were as follows:
UNREALIZED UNREALIZED UNREALIZED UNREALIZED PORTFOLIO APPRECIATION DEPRECIATION PORTFOLIO APPRECIATION DEPRECIATION ------------------------ ------------- --------------------- ---------------- ------------- ------------- Capital $ 2,609,693 $ 3,749,847 High-Yield Bond $ 169,518 $ 378,096 Common Stock 1,246,278 1,987,477 Income 148,756 257,786 Communications and International Growth 297,210 195,287 Information 2,880,670 27,088,517 Investment Grade 127,640 16,210 Frontier 1,190,242 1,072,331 Large-Cap Growth 90,367 881,644 Global Growth 211,215 494,841 Large-Cap Value 496,410 1,160,054 Global Smaller Companies 900,278 1,089,833 Small-Cap Value 29,803,660 15,005,795 Global Technology 760,203 4,577,466
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 Manager's fee, which is calculated daily and payable monthly, is equal to 0.40%, on an annual basis, of each of Capital, Cash Management, Common Stock, Income, and Investment Grade Portfolios' daily net assets; equal to 0.75%, on an annual basis, of each of Communications and Information and Frontier Portfolios' daily net assets; and equal to 0.50%, on an annual basis, of High-Yield Bond Portfolio's daily net assets. The Manager's fee 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 Manager's fee for the Large-Cap Growth Portfolio is equal to 0.70% per annum of the first $1 billion of average daily net assets, 0.65% per annum of the next $1 billion, and 0.60% per annum in excess of $2 billion of average daily net assets of the Portfolio. The Manager's fee for the Large-Cap Value Portfolio is equal to 0.80% per annum of the first $500 million of average daily net assets, 0.70% per annum of the next $500 million of average daily net assets, and 0.60% per annum in excess of $1 billion of average daily net assets of the Portfolio. The Manager's fee for the Small-Cap Value Portfolio is equal to 1.00% per annum of the first $500 million of average daily net assets, 0.90% per annum of the next $500 million of average daily net assets, and 0.80% per annum in excess of $1 billion of average daily net assets of the Portfolio. 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 Portfolio's 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 Subadviser's 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. 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:
PORTFOLIO RATE ------------------------------ ----- Capital 0.40% Cash Management 0.30 Common Stock 0.40 Communications and Information 0.40 Frontier 0.75 Global Growth 0.40 Global Smaller Companies 0.40 Global Technology 0.40 High-Yield Bond 0.50 Income 0.55 International Growth 0.40 Investment Grade 0.45 Large-Cap Growth 0.45 Large-Cap Value 0.40 Small-Cap Value 0.20
The amounts of these reimbursements, where applicable, for the six months ended June 30, 2002, 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 six months ended June 30, 2002, the Distributor earned fees of $6,447 for distributing such contracts. 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 six months ended June 30, 2002, fees incurred under the Plan aggregated $4,757, or 0.25% per annum; $18,993, or 0.25% per annum; $2,005, or 0.15% per annum; and $7,113, 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. 52 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 June 30, 2002, 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 PORTFOLIO AMOUNT ------------------------------ ----------- -------------------- ---------- Capital $ 9,473,999 High-Yield Bond $9,979,998 Communications and Information 25,235,200 Income 214,507 Frontier 238,385 International Growth 2,459,486 Global Growth 1,280,805 Investment Grade 254,332 Global Smaller Companies 633,858 Large-Cap Growth 1,582,183 Global Technology 9,503,030 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 PORTFOLIO AMOUNT --------------- ---------- ---------------- -------- Common Stock $ 988,146 Large-Cap Growth $109,395 High-Yield Bond 1,486,885 Large-Cap Value 180,832 Income 200,629
As a result of the adjustments for wash sales and post-October losses, the Common Stock Portfolio had undistributed net realized long-term gain of $243,746 at December 31, 2001. 7. COMMITTED LINE OF CREDIT -- All of the Portfolios, except the Cash Management Portfolio, are participants in a joint $650 million committed line of credit that is shared by substantially all open-end funds in the Seligman Group of Investment Companies. The directors have currently limited each Portfolio's borrowings to 10% 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 2003, but is renewable annually with the consent of the participating banks. For the six months ended June 30, 2002, the Small-Cap Value Portfolio periodically borrowed from the credit facility. The average outstanding daily balance of bank loans (based on the number of days the loans were outstanding during the period) was $5,779,592, with a weighted average interest rate of 2.274%. The maximum borrowing outstanding during the period was $11,700,000. In July 2002, the Portfolio borrowed amounts up to $2,500,000, which have been fully repaid. 8. OUTSTANDING FORWARD EXCHANGE CURRENCY CONTRACTS -- At June 30, 2002, the Fund had outstanding forward exchange currency contracts to sell foreign currencies as follows:
FOREIGN IN EXCHANGE SETTLEMENT US $ UNREALIZED CONTRACT CURRENCY FOR US $ DATE VALUE DEPRECIATION -------------------- ---------- ----------- ---------- ------ -------------- GLOBAL GROWTH British pounds 3,796 5,778 7/1/02 5,788 $ (10) Swiss francs 25,612 17,130 7/1/02 17,172 (42) -------------- $ (52) ========== GLOBAL TECHNOLOGY British pounds 32,519 49,497 7/1/02 49,580 $ (83) ==============
53 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued) --------------------------------------------------------------------------------
NOTE 8 (continued) FOREIGN IN EXCHANGE SETTLEMENT US $ UNREALIZED CONTRACT CURRENCY FOR US $ DATE VALUE DEPRECIATION -------------------- ---------- ----------- ---------- ------ -------------- INTERNATIONAL GROWTH British pounds 13,286 20,223 7/1/02 20,257 $ (34) Swiss francs 42,687 28,549 7/1/02 28,620 (71) -------------- $ (105) ==============
9. Capital Stock Transactions - At June 30, 2002, 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 Capital, Global Smaller Companies, International Growth, Income, and Investment Grade 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:
CASH CAPITAL PORTFOLIO MANAGEMENT CLASS 1 CLASS 2 PORTFOLIO -------------------------------- ----------------------- -------------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ------------------ ----------- ----------- --------- ----------- ------------- Sale of shares 58,654 160,216 86,856 140,543 5,475,803 112,248,639 Shares issued in payment of dividends -- 2,324 -- -- 52,906 562,209 Shares issued in payment of gain distributions -- 795,588 -- 123,084 -- -- ------------------ ----------- ----------- --------- ----------- ------------- Total 58,654 958,128 86,856 263,627 5,528,709 112,810,848 ------------------ ----------- ----------- --------- ----------- ------------- Shares redeemed (263,337) (493,890) (34,590) (19,830) (9,069,137) (112,917,253) ------------------ ----------- ----------- --------- ----------- ------------- Increase (decrease) in shares (204,683) 464,238 52,266 243,797 (3,540,428) (106,405) ================== =========== =========== ========= =========== =============
COMMON STOCK COMMUNICATIONS AND INFORMATION PORTFOLIO PORTFOLIO CLASS 1 CLASS 2 ------------------------ ---------------------- ----------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ----------- ----------- ----------- ----------- ----------- ---------- Sale of shares 202,181 1,960,193 575,785 1,575,403 920,361 1,452,089 Shares issued in payment of dividends -- 26,209 -- -- -- -- Shares issued in payment of gain distributions -- 265,345 -- 1,745,450 -- 253,448 ----------- ----------- ----------- ----------- ----------- ---------- Total 202,181 2,251,747 575,785 3,320,853 920,361 1,705,537 ----------- ----------- ----------- ----------- ----------- ---------- Shares redeemed (398,984) (2,360,228) (1,435,583) (2,944,706) (840,677) (914,683) ----------- ----------- ----------- ----------- ----------- ---------- Increase (decrease) in shares (196,803) (108,481) (859,798) 376,147 79,684 790,854 =========== =========== =========== =========== =========== ==========
FRONTIER GLOBAL GROWTH GLOBAL SMALLER PORTFOLIO PORTFOLIO PORTFOLIO ----------------------- ---------------------- --------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ----------- ----------- ----------- ---------- ----------- --------- Sale of shares 144,382 1,574,742 279,711 341,572 204,105 414,591 Shares issued in payment of dividends -- -- -- -- -- -- Shares issued in payment of gain distributions -- 72,697 -- 782,440 -- 150,522 ----------- ----------- ----------- ---------- ------------ --------- Total 144,382 1,647,439 279,711 1,124,012 204,105 565,113 ----------- ----------- ----------- ---------- ----------- --------- Shares redeemed (244,097) (1,758,198) (398,309) (517,136) (275,706) (589,613) ----------- ----------- ----------- ---------- ----------- --------- Increase (decrease) in shares (99,715) (110,759) (118,598) 606,876 (71,601) (24,500) =========== =========== =========== ========== =========== =========
54 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY HIGH-YIELD PORTFOLIO BOND PORTFOLIO ---------------------------------------------- ------------------------ SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ----------- --------- ----------- --------- ----------- ----------- Sale of shares 270,420 518,457 428,662 155,145 550,195 1,447,590 Shares issued in payment of dividends -- -- -- -- -- 371,091 Shares issued in payment of gain distributions -- 244,034 -- 42,163 -- -- ----------- --------- ----------- --------- ----------- ----------- Total 270,420 762,491 428,662 197,308 550,195 1,818,681 ----------- --------- ----------- --------- ----------- ----------- Shares redeemed (355,809) (592,075) (476,078) (117,198) (819,798) (1,496,133) ----------- --------- ----------- --------- ----------- ----------- Increase (decrease) in shares (85,389) 170,416 (47,416) 80,110 (269,603) 322,548 =========== ========= =========== ========= =========== ===========
INTERNATIONAL INVESTMENT GRADE INCOME GROWTH FIXED INCOME PORTFOLIO PORTFOLIO PORTFOLIO ----------------------- ---------------------- --------------------- SIX SIX SIX MONTHS MONTHS MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/02 ENDED 6/30/02 ENDED 6/30/02 ENDED (unaudited) 12/31/01 (unaudited) 12/31/01 (unaudited) 12/31/01 ----------- --------- ----------- ----------- ----------- --------- Sale of shares 86,229 192,290 148,104 3,078,988 177,509 553,377 Shares issued in payment of dividends -- 24,164 -- -- -- 34,307 Shares issued in payment of gain distributions -- -- -- -- -- -- ----------- --------- ----------- ----------- ----------- --------- Total 86,229 216,454 148,104 3,078,988 177,509 587,684 ----------- --------- ----------- ----------- ----------- --------- Shares redeemed (126,958) (307,979) (178,913) (3,154,674) (142,356) (528,877) ----------- --------- ----------- ----------- ----------- --------- Increase (decrease) in shares (40,729) (91,525) (30,809) (75,686) 35,153 58,807 =========== ========= =========== =========== =========== =========
LARGE-CAP GROWTH LARGE-CAP VALUE PORTFOLIO PORTFOLIO ---------------- ------------------- Sale of shares 186,407 360,898 295,668 772,771 Shares issued in payment of dividends -- 832 -- 7,975 Shares issued in payment of gain distributions -- 53,758 -- 3,915 --------- --------- --------- --------- Total 186,407 415,488 295,668 784,661 --------- --------- --------- --------- Shares redeemed (247,125) (404,162) (274,065) (570,178) --------- --------- --------- --------- Increase (decrease) in shares (60,718) 11,326 21,603 214,483 ========= ========= ========= =========
SMALL-CAP VALUE PORTFOLIO ------------------------------------------------ CLASS 1 CLASS 2 ----------------------- ---------------------- SIX SIX MONTHS MONTHS ENDED YEAR ENDED 5/1/01* 6/30/02 ENDED 6/30/02 TO (unaudited) 12/31/01 (unaudited) 12/31/01 ----------- ----------- ----------- --------- Sale of shares 4,387,758 7,848,772 522,646 617,927 Shares issued in payment of dividends -- -- -- -- Shares issued in payment of gain distributions -- 18,722 -- 827 ----------- ----------- ----------- --------- Total 4,387,758 7,867,494 522,646 618,754 ----------- ----------- ----------- --------- Shares redeemed (626,471) (1,751,022) (196,416) (221,513) ----------- ----------- ----------- --------- Increase (decrease) in shares 3,761,287 6,116,472 326,230 397,241 =========== =========== =========== ========= ---------- * Commencement of offering of shares.
55 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 and one-half years or from its inception, if less than five and one-half 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.
CAPITAL PORTFOLIO ---------------------------------------------------------------------------------------------------- CLASS 1 ---------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.37 $ 24.68 $ 23.90 $ 20.81 $ 18.10 $ 16.01 ------------ --------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.02) (0.06) 0.02 0.01 0.04 0.03 Net realized and unrealized gain (loss) on investments (2.79) (4.01) 2.06 10.21 3.89 3.35 ------------ --------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (2.81) (4.07) 2.08 10.22 3.93 3.38 ------------ --------- -------- -------- -------- -------- 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) ------------ --------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS -- (8.24) (1.30) (7.13) (1.22) (1.29) ------------ --------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 9.56 $ 12.37 $ 24.68 $ 23.90 $ 20.81 $ 18.10 ------------ --------- -------- -------- -------- -------- TOTAL RETURN: (22.72)% (15.97)% 8.50% 53.35% 22.19% 21.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 16,873 $ 24,349 $37,138 $27,586 $24,141 $20,400 Ratio of expenses to average net assets 0.73%+ 0.61% 0.59% 0.59% 0.60% 0.60% Ratio of net investment income to average net assets (0.45)%+ (0.31)% 0.07% 0.03% 0.19% 0.16% Portfolio turnover rate 69.28% 215.16% 230.42% 172.88% 130.86% 93.97% Without expense reimbursement:@ Ratio of expenses to average net assets 0.70% 0.62% Ratio of net investment income (loss) to average net assets (0.39)% 0.14%
CAPITAL PORTFOLIO -------------------------------------------------------------------------- CLASS 2 -------------------------------------------------------------------------- SIX MONTHS ENDED YEAR 8/30/00* 6/30/02 ENDED TO PER SHARE DATA: (unaudited) 12/31/01 12/31/00 ------------ ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.34 $ 24.68 $ 33.31 ------------ ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.04) (0.11) (0.05) Net realized and unrealized gain (loss) on investments (2.77) (4.01) (7.28) ------------ ---------- ----------- TOTAL FROM INVESTMENT OPERATIONS (2.81) (4.12) (7.33) ------------ ---------- ----------- LESS DISTRIBUTIONS: Dividends from net investment income -- -- -- Distributions from net realized capital gain -- (8.22) (1.30) ------------ ---------- ----------- TOTAL DISTRIBUTIONS -- (8.22) (1.30) ------------ ---------- ----------- NET ASSET VALUE, END OF PERIOD $ 9.53 $ 12.34 $ 24.68 ------------ ---------- ----------- TOTAL RETURN: (22.77)% (16.18)% (22.15)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 3,427 $ 3,792 $ 1,569 Ratio of expenses to average net assets 0.98%+ 0.85% 0.84%+ Ratio of net investment income to average net assets (0.70)%+ (0.55)% (0.66)%+ Portfolio turnover rate 69.28% 215.16% 230.42%++ Without expense reimbursement:@ Ratio of expenses to average net assets 0.94% Ratio of net investment income (loss) to average net assets (0.63)%
---------- * Commencement of offering of shares. + Annualized. ++ For the year ended December 31, 2000. @ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements. 56 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO ---------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, ----------------------------------------------- PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ----------- ----------------------- ---- ---- ---- ---- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 -------- -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.005 0.038 0.062 0.050 0.053 0.054 -------- -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS 0.005 0.038 0.062 0.050 0.053 0.054 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income (0.005) (0.038) (0.062) (0.050) (0.053) (0.054) -------- -------- -------- -------- -------- -------- TOTAL DISTRIBUTIONS (0.005) (0.038) (0.062) (0.050) (0.053) (0.054) -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======== ======== ======== ======== ======== ======== TOTAL RETURN: 0.52% 3.88% 6.38% 5.07% 5.42% 5.52% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 8,670 $12,211 $12,318 $17,611 $10,520 $ 8,635 Ratio of expenses to average net assets 0.70%+ 0.07% -- -- -- -- Ratio of net investment income to average net assets 1.04%+ 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 investment income to average net assets 3.17% 5.45% 4.34% 4.63% 4.60%
COMMON STOCK PORTFOLIO ------------------------------------------------------------------------------------------------ SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ---------- -------- -------- -------- ------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.84 $ 14.23 $ 16.61 $ 18.63 $ 16.28 $ 15.92 --------- --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.04 0.08* 0.12 0.32 0.29 0.33 Net realized and unrealized gain (loss) on investments (1.32) (1.85)* (1.86) 2.03 3.61 3.01 --------- --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (1.28) (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 PERIOD $ 9.56 $ 10.84 $ 14.23 $ 16.61 $ 18.63 $ 16.28 ========= ========= ========= ======== ======== ======== TOTAL RETURN: (11.81)% (12.24)% (10.53)% 13.15% 24.16% 21.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 19,075 $ 23,756 $ 32,738 $47,303 $62,588 $50,737 Ratio of expenses to average net assets 0.55%+ 0.59% 0.60% 0.52% 0.52% 0.53% Ratio of net investment income to average net assets 0.74%+ 0.59% 0.71% 1.30% 1.61% 1.92% Portfolio turnover rate 70.04% 83.49% 52.01% 38.11% 55.55% 80.13%
---------- * Per share data has been restated. + Annualized. @ The Manager, at its discretion, waived management fees and/or reimbursed expenses for certain periods presented. See Notes to Financial Statements. 57 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
COMMUNICATIONS AND INFORMATION PORTFOLIO ----------------------------------------------------------------------------------------------------- CLASS 1 ----------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- --------- --------- --------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.59 $ 14.82 $ 26.70 $ 17.14 $ 13.09 $ 14.69 ------------ --------- --------- --------- --------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.04) (0.07) (0.11) (0.10) (0.08) (0.08) Net realized and unrealized gain (loss) on investments (3.56) 0.80 (9.45) 14.36 4.81 3.13 ------------ --------- --------- --------- --------- -------- TOTAL FROM INVESTMENT OPERATIONS (3.60) 0.73 (9.56) 14.26 4.73 3.05 ------------ --------- --------- --------- --------- -------- LESS DISTRIBUTIONS: Distributions from net realized capital gain -- (2.96) (2.32) (4.70) (0.68) (4.65) ------------ --------- --------- --------- --------- -------- TOTAL DISTRIBUTIONS -- (2.96) (2.32) (4.70) (0.68) (4.65) ------------ --------- --------- --------- --------- -------- NET ASSET VALUE, END OF PERIOD $ 8.99 $ 12.59 $ 14.82 $ 26.70 $ 17.14 $ 13.09 ============ ========= ========= ========= ========= ======== TOTAL RETURN: (28.59)% 5.34% (36.19)% 85.81% 36.49% 22.22% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 73,247 $113,424 $127,901 $213,961 $122,279 $87,633 Ratio of expenses to average net assets 0.92%+ 0.93% 0.87% 0.86% 0.87% 0.87% Ratio of net investment loss to average net assets (0.69)%+ (0.45)% (0.48)% (0.51)% (0.56)% (0.49)% Portfolio turnover rate 48.86% 130.94% 104.41% 118.16% 132.57% 277.14%
COMMUNICATIONS AND INFORMATION PORTFOLIO ----------------------------------------------------------------------------------------------------- CLASS 2 ----------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR 5/1/00** 6/30/02 ENDED TO PER SHARE DATA: (unaudited) 12/31/01 12/31/00 ------------ ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.53 $ 14.80 $ 30.61 ------------ ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.05) (0.11) (0.08) Net realized and unrealized gain (loss) on investments (3.54) 0.80 (13.41) ------------ ---------- ----------- TOTAL FROM INVESTMENT OPERATIONS (3.59) 0.69 (13.49) ------------ ---------- ----------- LESS DISTRIBUTIONS: Distributions from net realized capital gain -- (2.96) (2.32) ------------ ---------- ----------- TOTAL DISTRIBUTIONS -- (2.96) (2.32) ------------ ---------- ----------- NET ASSET VALUE, END OF PERIOD $ 8.94 $ 12.53 $ 14.80 ============ ========== =========== TOTAL RETURN: (28.65)% 5.08% (44.40)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 12,503 $ 16,537 $ 7,822 Ratio of expenses to average net assets 1.17%+ 1.18% 1.12%+ Ratio of net investment loss to average net assets (0.94)%+ (0.70)% (0.61)%+ Portfolio turnover rate 48.86% 130.94% 104.41%++
FRONTIER PORTFOLIO -------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ -------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.12 $ 15.26 $ 18.13 $ 15.55 $ 15.78 $ 14.98 ------------ -------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.05) (0.05) (0.13)* (0.10) (0.08) (0.08) Net realized and unrealized gain (loss) on investments (1.43) (1.12) (2.74)* 2.68 (0.15) 2.47 Total from Investment Operations (1.48) (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 PERIOD $ 11.64 $ 13.12 $ 15.26 $ 18.13 $ 15.55 $ 15.78 ============ ======== ========= ======== ======== ======== TOTAL RETURN: (11.28)% (7.35)% (15.83)% 16.59% (1.46)% 16.33% Ratios/Supplemental Data: Net assets, end of period (000s omitted) $ 10,526 $13,174 $ 17,011 $25,706 $39,148 $42,973 Ratio of expenses to average net assets 1.11%+ 1.01% 0.95% 0.95% 0.92% 0.89% Ratio of net investment loss to average net assets (0.84)%+ (0.38)% (0.73)% (0.68)% (0.51)% (0.49)% Portfolio turnover rate 46.58% 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 investment loss to average net assets (0.61)% (0.96)% (0.69)% ---------- * Per share data has been restated. ** Commencement of offering of shares. + Annualized. ++ For the year ended December 31, 2000. @ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements.
58 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO ------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 4.02 $ 15.11 $ 18.22 $ 13.33 $ 11.03 $ 9.91 ------------ --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.01 0.02 (0.13) (0.06) (0.01) 0.01 Net realized and unrealized gain (loss) on investments (0.65) (2.99) (2.28) 7.31 2.25 1.79 Net realized and unrealized gain (loss) on foreign currency transactions 0.15 (0.20) (0.46) (0.44) 0.14 (0.56) ------------ --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (0.49) (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 PERIOD $ 3.53 $ 4.02 $ 15.11 $ 18.22 $ 13.33 $ 11.03 ============ ========= ========= ======== ======== ======== TOTAL RETURN: (12.19)% (19.93)% (15.78)% 52.49% 21.60% 12.57% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 3,676 $ 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% 1.40% Ratio of net investment income (loss) to average net assets 0.31%+ 0.13% (0.67)% (0.38)% (0.06)% 0.01% Portfolio turnover rate 74.36% 161.49% 125.84% 69.18% 48.99% 77.85% Without expense reimbursement:++ Ratio of expenses to average net assets 1.89%+ 1.74% 1.71% 1.45% 1.60% 2.11% Ratio of net investment loss to average net assets (0.18)%+ (0.20)% (0.98)% (0.43)% (0.26)% (0.70)%
GLOBAL SMALLER COMPANIES PORTFOLIO ------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.33 $ 14.40 $ 17.48 $ 13.62 $ 12.98 $ 12.87 ------------ --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.03) (0.06) (0.09) (0.06) (0.01) 0.02 Net realized and unrealized gain (loss) on investments (1.02) (1.40) (1.91) 4.10 1.02 1.17 Net realized and unrealized gain (loss) on foreign currency transactions 0.35 (0.79) (0.56) (0.18) (0.17) (0.75) ------------ --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (0.70) (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 PERIOD $ 9.63 $ 10.33 $ 14.40 $ 17.48 $ 13.62 $ 12.98 ============ ========= ========= ======== ======== ======== TOTAL RETURN: (6.78)% (15.25)% (14.63)% 23.84% 6.58% 3.43% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 8,641 $ 10,017 $ 14,310 $19,569 $20,814 $20,505 Ratio of expenses to average net assets 1.40%+ 1.40% 1.39% 1.40% 1.40% 1.40% Ratio of net investment income (loss) to average net assets (0.56)%+ (0.49)% (0.46)% (0.46)% (0.06)% 0.24% Portfolio turnover rate 52.23% 100.83% 84.86% 46.75% 66.40% 64.81% Without expense reimbursement:++ Ratio of expenses to average net assets 2.17%+ 1.96% 1.60% 1.50% 1.56% Ratio of net investment income (loss) to average net assets (1.33)%+ (1.05)% (0.66)% (0.16)% 0.08% ---------- + Annualized. ++ The Manager, and/or Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for the periods presented. See Notes to Financial Statements.
59 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
GLOBAL TECHNOLOGY PORTFOLIO ----------------------------------------------------------------------------------------------------- CLASS 1 ----------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- --------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.96 $ 20.14 $ 27.42 $ 13.85 $ 10.59 $ 10.32 ------------ --------- --------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.07) (0.14) (0.13)* (0.09) (0.05) 0.01 Net realized and unrealized gain (loss) on investments (3.20) (4.06) (6.34)* 16.25 3.81 2.15 Net realized and unrealized gain (loss) on foreign currency transactions 0.29 (0.25) (0.01) (0.04) 0.11 (0.19) ------------ --------- --------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (2.98) (4.45) (6.48) 16.12 3.87 1.97 ------------ --------- --------- -------- -------- -------- 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) ------------ --------- --------- -------- -------- -------- TOTAL DISTRIBUTIONS -- (2.73) (0.80) (2.55) (0.61) (1.70) ------------ --------- --------- -------- -------- -------- NET ASSETS VALUE, END OF PERIOD $ 9.98 $ 12.96 $ 20.14 $ 27.42 $ 13.85 $ 10.59 ============ ========= ========= ======== ======== ======== TOTAL RETURN: (22.99)% (22.05)% (23.75)% 118.80% 36.80% 19.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 13,424 $ 18,533 $ 25,370 $22,087 $ 6,130 $ 3,686 Ratio of expenses to average net assets 1.40%+ 1.40% 1.30% 1.40% 1.40% 1.40% Ratio of net investment income (loss) to average net assets (1.10)%+ (0.87)% (0.46)% (0.51)% (0.43)% 0.12% Portfolio turnover rate 69.54% 160.75% 142.42% 116.88% 82.27% 167.36% Without expense reimbursement:++ Ratio of expenses to average net assets 1.64%+ 1.61% 1.41% 1.80% 2.10% Ratio of net investment loss to average net assets (1.34)%+ (1.08)% (0.52)% (0.83)% (0.58)%
GLOBAL TECHNOLOGY PORTFOLIO ----------------------------------------------------------------------------------------------------- CLASS 2 ----------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR 5/1/00** 6/30/02 ENDED TO PER SHARE DATA: (unaudited) 12/31/01 12/31/00 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.93 $ 20.14 $ 30.96 ------------ ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.07) (0.17) (0.12) Net realized and unrealized gain (loss) on investments (3.20) (4.06) (10.01) Net realized and unrealized gain (loss) on foreign currency transactions 0.29 (0.25) 0.11 ------------ ---------- ---------- TOTAL FROM INVESTMENT OPERATIONS (2.98) (4.48) (10.02) ------------ ---------- ---------- Less Distributions: Dividends from net investment income -- -- -- Distributions from net realized capital gain -- (2.73) (0.80) ------------ ---------- ---------- TOTAL DISTRIBUTIONS -- (2.73) (0.80) ------------ ---------- ---------- NET ASSETS VALUE, END OF PERIOD $ 9.95 $ 12.93 $ 20.14 ============ ========== ========== TOTAL RETURN: (23.05)% (22.20)% (25.99)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 2,005 $ 3,219 $ 3,400 Ratio of expenses to average net assets 1.55%+ 1.54% 1.55%+ Ratio of net investment income (loss) to average net assets (1.25)%+ (1.02)% (0.84)%+ Portfolio turnover rate 69.54% 160.75% 142.42%@ Without expense reimbursement:++ Ratio of expenses to average net assets 1.79%+ 1.75% Ratio of net investment loss to average net assets (1.49)%+ (1.23)% ------------ * Per share data has been restated. ** Commencement of offering of shares. + Annualized. ++ The Manager, and/or Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for certain periods presented. @ For the year ended December 31, 2000. See Notes to Financial Statements.
60 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
HIGH-YIELD BOND PORTFOLIO ------------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.10 $ 8.73 $ 9.59 $ 10.87 $ 11.87 $ 11.19 ------------ --------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.28 0.85* 1.03 1.19 1.11 0.91 Net realized and unrealized gain (loss) on investments (0.61) (2.14)* (1.89) (1.27) (0.99) 0.78 ------------ --------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS (0.33) (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 ASSETS VALUE, END OF PERIOD $ 5.77 $ 6.10 $ 8.73 $ 9.59 $ 10.87 $ 11.87 ============ ========= ======== ======== ======== ======== TOTAL RETURN: (5.41)% (14.71)% (8.93)% (0.75)% 1.02% 15.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 10,268 $ 12,510 $15,080 $26,892 $32,253 $23,268 Ratio of expenses to average net assets 0.87%+ 0.70% 0.70% 0.70% 0.70% 0.70% Ratio of net investment income to average net assets 9.08%+ 10.50% 11.02% 10.33% 9.60% 9.61% Portfolio turnover rate 89.13% 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 investment income to average net assets 10.42% 10.94% 10.26% 9.56% 9.52%
INCOME PORTFOLIO ------------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- -------- -------- -------- -------- Net Asset Value, Beginning of Period $ 9.04 $ 9.65 $ 9.91 $11.01 $ 10.80 $ 10.52 ------------ --------- --------- ------- -------- -------- Income from Investment Operations: Net investment income 0.09 0.31* 0.30* 0.53 0.45 0.56 Net realized and unrealized gain (loss) on investments (0.71) (0.46)* (0.52)* (0.23) 0.38 0.91 ------------ --------- --------- ------- -------- -------- Total from Investment Operations (0.62) (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 Assets Value, End of Period $ 8.42 $ 9.04 $ 9.65 $ 9.91 $ 11.01 $ 10.80 ============ ========= ========= ======= ======== ======== TOTAL RETURN: (6.86)% (1.49)% (2.20)% 2.87% 7.76% 14.02% Ratios/Supplemental Data: Net assets, end of period (000s omitted) $ 3,807 $ 4,459 $ 5,640 $8,595 $14,582 $13,835 Ratio of expenses to average net assets 0.95%+ 0.64% 0.60% 0.60% 0.60% 0.60% Ratio of net investment income to average net assets 1.97%+ 3.34% 3.07% 3.62% 3.94% 4.71% Portfolio turnover rate 109.64% 88.69% 61.14% 75.08% 70.45% 96.99% Without expense reimbursement:++ Ratio of expenses to average net assets 1.22%+ 1.02% 0.83% 0.72% 0.61% 0.63% Ratio of net investment income to average net assets 1.70%+ 2.96% 2.84% 3.50% 3.93% 4.68% ------------ * Per share data has been restated. ** During 2000, a dividend of $0.004 per share was paid. + Annualized. ++ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements.
61 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO ------------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- ------- -------- ------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.05 $ 10.65 $ 16.63 $ 15.37 $13.54 $ 12.96 ------------ --------- --------- -------- ------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.04 0.03 (0.08)* 0.05 0.08 0.03 Net realized and unrealized gain (loss) on investments (0.79) (2.43) (4.45)* 4.59 1.90 2.11 Net realized and unrealized gain (loss) on foreign currency transactions 0.52 (0.20) (0.88) (0.73) 0.16 (1.06) ------------ --------- --------- -------- ------- -------- TOTAL FROM INVESTMENT OPERATIONS (0.23) (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 PERIOD $ 7.82 $ 8.05 $ 10.65 $ 16.63 $15.37 $ 13.54 ============ ========= ========= ======== ======= ======== TOTAL RETURN: (2.86)% (24.41)% (32.47)% 26.64% 15.81% 8.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 4,417 $ 4,793 $ 7,150 $10,248 $9,893 $ 9,182 Ratio of expenses to average net assets 1.40%+ 1.40% 1.40% 1.39% 1.40% 1.40% Ratio of net investment income (loss) to average net assets 1.02%+ 0.34% (0.57)% 0.33% 0.52% 0.43% Portfolio turnover rate 98.12% 199.09% 275.32% 79.17% 75.81% 89.43% Without expense reimbursement:++ Ratio of expenses to average net assets 1.86%+ 1.80% 2.03% 1.66% 1.78% 2.07% Ratio of net investment income (loss) to average net assets 0.56%+ (0.06)% (1.20)% 0.06% 0.14% (0.24)%
INVESTMENT GRADE FIXED INCOME PORTFOLIO ---------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 6/30/02 YEAR ENDED DECEMBER 31, PER SHARE DATA: (unaudited) 2001 2000 1999 1998 1997 ------------ --------- ------- -------- ------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $10.25 $10.22 $9.27 $10.38 $10.24 $9.89 ------------ --------- ------- -------- ------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.22 0.57* 0.60 0.64 0.59 0.54 Net realized and unrealized gain (loss) on investments 0.09 (0.01)* 0.35 (1.10) 0.25 0.35 ------------ --------- ------- -------- ------- -------- TOTAL FROM INVESTMENT OPERATIONS 0.31 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 PERIOD $10.56 $10.25 $10.22 $9.27 $10.38 $10.24 ============ ========= ======= ======== ======= ======== TOTAL RETURN: 3.02% 5.52% 10.25% (4.48)% 8.20% 8.98% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $7,691 $7,103 $6,483 $4,947 $7,320 $7,232 Ratio of expenses to average net assets 0.79%+ 0.63% 0.60% 0.60% 0.60% 0.60% Ratio of net investment income to average net assets 4.31%+ 5.35% 6.23% 5.56% 5.58% 6.22% Portfolio turnover rate 126.91% 146.08% 63.07% 64.22% 73.31% 170.12% Without expense reimbursement:@ Ratio of expenses to average net assets 0.76% 0.84% 0.71% 0.82% 0.83% Ratio of net investment income to average net assets 5.22% 5.99% 5.45% 5.36% 5.99% ------------ * Per share data has been restated. + Annualized. ++ The Manager, and/or Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses for the periods presented. @ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements.
62 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
LARGE-CAP GROWTH PORTFOLIO ---------------------------------------------------------------------------------------------------- SIX MONTHS ENDED 5/1/99** 6/30/02 YEAR ENDED DECEMBER 31, TO PER SHARE DATA: (unaudited) 2001 2000 12/31/99 ------------ --------- --------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.47 $ 10.21 $ 12.16 $ 10.00 ------------ --------- --------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.02) -- 0.01 -- Net realized and unrealized gain (loss) on investments (2.02) (1.89) (1.96) 2.16 ------------ --------- --------- ---------- TOTAL FROM INVESTMENT OPERATIONS (2.04) (1.89) (1.95) 2.16 ------------ --------- --------- ---------- LESS DISTRIBUTIONS: Dividends from net investment income -- (0.01) -- -- Distributions from net realized capital gain -- (0.84) -- -- ------------ --------- --------- ---------- TOTAL DISTRIBUTIONS -- (0.85) -- -- ------------ --------- --------- ---------- NET ASSET VALUE, END OF PERIOD $ 5.43 $ 7.47 $ 10.21 $ 12.16 ============ ========= ========= ========== TOTAL RETURN: (27.31)% (18.37)% (16.04)% 21.60% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 2,526 $ 3,930 $ 5,255 $ 3,668 Ratio of expenses to average net assets 1.15%+ 0.74% 0.70% 0.70%+ Ratio of net investment income (loss) to average net assets (0.51)%+ (0.04)% 0.08% (0.03)%+ Portfolio turnover rate 41.31% 166.24% 179.44% 56.69% Without expense reimbursement:++ Ratio of expenses to average net assets 1.28%+ 1.13% 1.18% 1.52%+ Ratio of net investment loss to average net assets (0.64)%+ (0.42)% (0.40)% (0.85)%+
LARGE-CAP VALUE PORTFOLIO ------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED 5/1/98** 6/30/02 TO PER SHARE DATA: (unaudited) 2001 2000 1999 12/31/98 ------------ -------- ------- -------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.46 $ 11.59 $ 9.28 $ 9.66 $ 10.00 ------------ -------- ------- -------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.04 0.09 0.14 0.10 0.04 Net realized and unrealized gain (loss) on investments (1.67) (1.06) 2.25 (0.37) (0.07) ------------ -------- ------- -------- ---------- Total from Investment Operations (1.63) (0.97) 2.39 (0.27) (0.03) ------------ -------- ------- -------- ---------- Less Distributions: Dividends from net investment income -- (0.11) 0.00* (0.11) (0.04) Distributions from net realized capital gain -- (0.05) (0.08) -- (0.27) ------------ -------- ------- -------- ---------- TOTAL DISTRIBUTIONS -- (0.16) (0.08) (0.11) (0.31) ------------ -------- ------- -------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.83 $ 10.46 $11.59 $ 9.28 $ 9.66 ============ ======== ======= ======== ========== TOTAL RETURN: (15.58)% (8.28)% 25.84% (2.76)% (0.26)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 6,701 $ 7,708 $6,057 $ 5,758 $ 3,845 Ratio of expenses to average net assets 1.06%+ 0.83% 0.80% 0.80% 0.80%+ Ratio of net investment income to average net assets 0.89%+ 1.13% 1.51% 1.18% 1.11%+ Portfolio turnover rate 7.74% 28.17% 42.29% 28.01% 65.82% Without expense reimbursement:++ Ratio of expenses to average net assets 1.10% 1.22% 1.13% 2.24%+ Ratio of net investment income (loss) to average net assets 0.86% 1.09% 0.85% (0.33)%+ ------------ * During 2000, a dividend of $0.004 per share was paid. ** Commencement of operations. + Annualized. ++ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements.
63 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
SMALL-CAP VALUE PORTFOLIO -------------------------------------------------------------------------------------------------------------------------------- CLASS 1 CLASS 2 ----------------------------------------------------- ------------------------ SIX MONTHS SIX MONTHS ENDED 5/1/98* ENDED 5/1/01** 6/30/02 YEAR ENDED DECEMBER 31, TO 6/30/02 TO PER SHARE DATA: (unaudited) 2001 2000 1999 12/31/98 (UNAUDITED) 12/31/01 ------------ --------- -------- -------- ---------- ------------ ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.04 $ 10.58 $ 8.08 $ 7.31 $ 10.00 $ 13.04 $ 10.78 ------------ --------- -------- -------- ---------- ------------ ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.03) (0.03) (0.01) (0.03) (0.02) (0.05) (0.03) Net realized and unrealized gain (loss) on investments (0.17) 2.52 2.66 2.49 (1.73) (0.17) 2.32 ------------ --------- -------- -------- ---------- ------------ ---------- TOTAL FROM INVESTMENT OPERATIONS (0.20) 2.49 2.65 2.46 (1.75) (0.22) 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 $ 12.84 $ 13.04 $ 10.58 $ 8.08 $ 7.31 $ 12.82 $ 13.04 ============ ========= ======== ======== ========== ============ ========== TOTAL RETURN: (1.53)% 23.52% 33.00% 35.26% (17.00)% (1.69)% 21.23% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $ 146,814 $100,090 $16,495 $ 4,403 $ 2,469 $ 9,277 $ 5,178 Ratio of expenses to average net assets 1.17%+ 1.19% 1.00% 1.00% 1.00%+ 1.36%+ 1.39%+ Ratio of net investment loss to average net assets (0.52)%+ (0.29)% (0.22)% (0.27)% (0.34)%+ (0.71)%+ (0.46)%+ Portfolio turnover rate 15.86% 29.99% 42.27% 90.51% 73.87% 15.86% 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 invesment 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 @ The Manager, at its discretion, reimbursed expenses for certain periods presented. See Notes to Financial Statements.
64 SELIGMAN PORTFOLIOS, INC. -------------------------------------------------------------------------------- BOARD OF DIRECTORS -------------------------------------------------------------------------------- JOHN R. GALVIN 2, 4 Dean Emeritus, Fletcher School of Law and Diplomacy at Tufts University PAUL C. GUIDONE 1 Chief Investment Officer, J. & W. Seligman & Co. Incorporated ALICE S. ILCHMAN 3, 4 Director, Jeannette K. Watson Summer Fellowships Trustee, Committee for Economic Development FRANK A. MCPHERSON 3, 4 Director, Conoco Inc. Director, Integris Health JOHN E. MEROW 2, 4 Director, Commonwealth Industries, Inc. Trustee, New York-Presbyterian Hospital Retired Chairman and Senior Partner, Sullivan & Cromwell BETSY S. MICHEL 2, 4 Trustee, The Geraldine R. Dodge Foundation WILLIAM C. MORRIS 1 Chairman of the Board, J. & W. Seligman & Co. Incorporated Chairman, Carbo Ceramics Inc. Director, Kerr-McGee Corporation LEROY C. RICHIE 2, 4 Chairman and CEO, Q Standards Worldwide, Inc. JAMES Q. RIORDAN 3, 4 Trustee, Committee for Economic Development ROBERT L. SHAFER 3, 4 Retired Vice President, Pfizer Inc. JAMES N. WHITSON 2, 4 Director and Consultant, Sammons Enterprises, Inc. Director, C-SPAN Director, CommScope, Inc. BRIAN T. ZINO 1 President, J. & W. Seligman & Co. Incorporated Chairman, Seligman Data Corp. Chairman, ICI Mutual Insurance Company Member of the Board of Governors, Investment Company Institute FRED E. BROWN Director Emeritus -------------------------- Member: 1 Executive Committee 2 Audit Committee 3 Director Nominating Committee 4 Board Operations Committee -------------------------------------------------------------------------------- EXECUTIVE OFFICERS -------------------------------------------------------------------------------- WILLIAM C. MORRIS Chairman BRIAN T. ZINO President DANIEL J. BARKER Vice President IAIN C. CLARK Vice President DAVID F. COOLEY Vice President NEIL T. EIGEN Vice President BENI-AMI GRADWOHL Vice President DAVID GUY Vice President CHRISTOPHER J. MAHONY Vice President RICHARD M. PAROWER Vice President KENDALL C. PETERSON Vice President THOMAS G. ROSE Vice President FREDERICK J. RUVKUN Vice President MARION S. SCHULTHEIS Vice President LAWRENCE P. VOGEL Vice President and Treasurer STEVEN A. WERBER, JR. Vice President PAUL H. WICK Vice President FRANK J. NASTA Secretary -------------------------------------------------------------------------------- FOR MORE INFORMATION MANAGER J. & W. Seligman & Co. Incorporated 100 Park Avenue New York, New York 10017 SUBADVISER (to Seligman Global Smaller Companies Portfolio) Henderson Investment Management Limited 3 Finsbury Avenue London EC2M 2PA GENERAL DISTRIBUTOR Seligman Advisors, Inc. 100 Park Avenue New York, New York 10017 CUSTODIANS JPMorgan Chase Bank State Street Bank and Trust Company GENERAL COUNSEL Sullivan & Cromwell INDEPENDENT AUDITORS Ernst & Young LLP 65 -------------------------------------------------------------------------------- SELIGMAN ADVISORS, INC. an affiliate of [LOGO] 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. SP3 6/02 [LOGO] Printed on Recycled Paper --------------------------------------------------------------------------------