N-CSRS 1 body_25563.htm N-CSRS SELIGMAN PORTFOLIOS, INC. N-CSRS Seligman Portfolios, Inc.
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-5221

Seligman Portfolios, Inc.
(Exact name of Registrant as specified in charter)

100 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)

Lawrence P. Vogel
100 Park Avenue
New York, New York 10017
(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 850-1864


Date of fiscal year end: 12/31

Date of reporting period: 6/30/05

 
 
 
FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS.
 
 
   
Seligman
Portfolios, Inc.
 
 
 
 
 
 
 
 
 
 
Mid-Year Report
June 30, 2005
 
 
   
 
 
 
 
 
 
 
Seligman Portfolios, Inc.

Dear Contract Owner/Plan Participant:

J. & W. Seligman & Co. Incorporated, Manager of Seligman Portfolios, Inc., is pleased to provide the enclosed report for the six months ended June 30, 2005. Investment results, portfolio information, and financial statements are contained in the pages that follow this letter.

We thank you for your continued support of Seligman Portfolios, Inc. and look forward to serving your investment needs for many years to come.

Respectfully,
 

William C. Morris Chairman
J. & W. Seligman & Co. Incorporated
 
August 12, 2005
 
 
Manager
Subadviser
General Counsel
J. & W. Seligman & Co.
(to Seligman International
Sullivan & Cromwell LLP
Incorporated
Growth Portfolio)
  
100 Park Avenue
Wellington Management Company, LLP
Custodians
New York, New York 10017
75 State Street
JPMorgan Chase Bank
 
Boston, MA 02109
State Street Bank and Trust Company
General Distributor
  
 
Seligman Advisors, Inc.
    
100 Park Avenue
    
New York, New York 10017
    
 
Quarterly Schedules of Investments
Complete schedules of portfolio holdings owned by the Fund will be filed with the SEC for the first and third quarters of each fiscal year on Form N-Q, and will be available on the SEC’s website at www.sec.gov. In addition, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Certain of the information contained on Form N-Q is also made available on Seligman’s website at www.seligman.com.1
 
Proxy Voting
A description of the policies and procedures used by the Fund to determine how to vote proxies relating to portfolio securities, as well as information regarding how the Fund voted proxies relating to portfolio securities during the 12-month period ended June 30 of each year will be available (i) without charge, upon request, by calling toll-free (800) 221-7844 in the US or collect (212) 850-1864 outside the US and (ii) on the SEC’s website at www.sec.gov.2 Individual insurance contract owners may also contact participating insurance companies for more information. Plan participants may contact their plan administrator.
____________
1
The reference to Seligman’s website is an inactive textual reference and information contained in or otherwise accessible through Seligman’s website does not form a part of this report or the Fund’s prospectus.
2
Information for each new 12-month period ending June 30 will be available no later than August 31 of that year.




Seligman Portfolios, Inc.
Performance and Portfolio Overview

This section of the report is intended to help you understand the performance of each Portfolio of Seligman Portfolios, Inc. (the “Fund”), and to provide a summary of their portfolio characteristics.

Performance data quoted represents past performance and does not guarantee future investment results. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns of the Portfolios as of the most recent month end will be available at www.seligman.com1 by the seventh business day following that month end. Calculations assume reinvestment of distributions. Returns for Class 1 and Class 2 shares are calculated without any sales charges. Performance data quoted are net of all portfolio operating expenses, but do not include any charges imposed on contract owners by the insurance companies’ separate account or any fees in respect of pension retirement plans. If these additional charges were included, performance would have been lower. Total returns do not reflect any fees or charges that investors will incur purchasing or selling units of the Variable Accounts. In the past and currently, J. & W. Seligman & Co. Incorporated (the “Manager”) reimbursed portions of the Portfolios’ expenses. Absent such reimbursements, returns would have been lower. Such reimbursements may be terminated at any time at the Manager’s discretion.

An investment in the Portfolios is subject to certain risks, including the possible loss of principal. There are specific risks associated with global investing, such as currency fluctuation, foreign taxation, differences in financial reporting practices, and rapid changes in political and economic conditions. Investing on one economic sector, such as technology, may be subject to greater price fluctuations than a portfolio of diversified investments. A portfolio with fewer holdings may be subject to greater volatility than a portfolio with a greater number of holdings. The stocks of smaller companies may be subject to above-average price fluctuations.

Prior to March 31, 2000, the Manager employed subadvisers that were responsible for providing all or a portion of the portfolio management services with respect to the investments of Seligman Global Technology Portfolio and Seligman International Growth Portfolio. For the period following, until September 15, 2003, in the case of Seligman International Growth Portfolio, the assets of these Portfolios were managed exclusively by the Manager. Since September 15, 2003, Wellington Management Company, LLP has acted as subadviser to provide portfolio management services for Seligman International Growth Portfolio.

Investment Results

Total Returns
For the Periods Ended June 30, 2005

       
Average Annual Return
  
   
Six
Months*
One
Year
Five
Years
Ten
Years
Since
Inception
8/30/00
Seligman Capital Portfolio:
                                
Class 1
    
2.94
%
  
4.73
%
  
(6.30
)%
  
10.57
%
  
n/a
  
Class 2
    
2.89
    
4.52
    
n/a
    
n/a
    
(8.24
)%
Russell Midcap Growth Index**
    
1.70
    
10.86
    
(5.23
)
  
9.43
    
(6.41
)
Lipper Mid-Cap Funds Average**
    
1.09
    
9.83
    
0.33
    
9.47
    
(1.44
 )#
Lipper Mid-Cap Growth Funds Average**
    
0.11
    
7.81
    
(5.05
)
  
8.22
    
(6.62
 )#
Seligman Common Stock Portfolio Class 1
    
(1.66
)
  
6.29
    
(4.31
)
  
6.23
    
n/a
  
Lipper Large-Cap Core Funds Average**
    
(1.20
)
  
4.41
    
(3.62
)
  
8.15
    
n/a
  
S&P 500 Index**
    
(0.81
)
  
6.32
    
(2.37
)
  
9.94
    
n/a
  

_____________
1
The reference to Seligman’s website is an inactive textual reference and information contained in or otherwise accessible through Seligman’s website does not form a part of this report or the Seligman Portfolios’ prospectus.
See footnotes on page 2.

1


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Total Returns
For the Periods Ended June 30, 2005

     
 Average Annual Return
   
Six
Months*
  
One
Year
  
Five
Years
  
Ten
Years
  
Since
Inception
5/1/96
  
Since
Inception
5/1/98
  
Since
Inception
5/1/00
  
Since
Inception
5/1/01
  
Seligman Communications and
Information Portfolio:
Class 1
    
(3.48
)%
  
0.97
%
  
(8.68
)%
  
8.26
%
  
n/a
    
n/a
    
n/a
    
n/a
  
Class 2
    
(3.68
)
  
0.57
    
(8.92
)
  
n/a
    
n/a
    
n/a
    
(10.22
)%
  
n/a
  
Goldman Sachs Technology
                                                  
Indexes (GSTI)**
    
(7.33
)
  
(5.33
)
  
(18.06
)
  
n/a
    
n/a
    
n/a
    
(17.76
 )†††  
n/a
  
Lipper Science & Technology Funds Average**
    
(6.05
)
  
(2.92
)
  
(18.73
)
  
6.08
    
n/a
    
n/a
    
(18.05
 )†††  
n/a
  
S&P 500 Index**
    
(0.81
)
  
6.32
    
(2.37
)
  
9.94
    
n/a
    
n/a
    
(2.44
)
  
n/a
  
Seligman Global Technology Portfolio:
Class 1
    
(4.63
)
  
(1.73
)
  
(12.31
)
  
n/a
    
8.09
%
  
n/a
    
n/a
    
n/a
  
Class 2
    
(4.73
)
  
(1.98
)
  
(12.43
)
  
n/a
    
n/a
    
n/a
    
(13.16
)
  
n/a
  
MSCI World Index**
    
(0.40
)
  
10.59
    
(1.65
)
  
n/a
    
6.26
 †  
n/a
    
1.45
 †††  
n/a
  
MSCI World IT Index**
    
(5.58
)
  
(3.95
)
  
(18.28
)
  
n/a
    
6.23
 †  
n/a
    
(17.97
 )†††  
n/a
  
Lipper Global Funds Average**
    
(0.38
)
  
10.13
    
(2.01
)
  
n/a
    
6.20
 †  
n/a
    
(1.64
 )†††  
n/a
  
Lipper Science & Technology Funds Average**
    
(6.05
)
  
(2.92
)
  
(18.73
)
  
n/a
    
5.12
 †  
n/a
    
(18.05
 )†††  
n/a
  
Seligman International Growth Portfolio Class 1
    
(7.84
)
  
2.67
    
(3.08
)
  
1.97
    
n/a
    
n/a
    
n/a
    
n/a
  
MSCI EAFE Index**
    
(0.85
)
  
14.13
    
(0.17
)
  
5.57
    
n/a
    
n/a
    
n/a
    
n/a
  
Lipper International Funds Average**
    
(1.11
)
  
12.63
    
(1.39
)
  
6.09
    
n/a
    
n/a
    
n/a
    
n/a
  
Lipper International Multi-Cap Growth
                                                  
Funds Average**
    
(1.37
)
  
11.46
    
(3.71
)
  
5.48
    
n/a
    
n/a
    
n/a
    
n/a
  
Seligman Investment Grade Fixed
Income Portfolio Class 1
    
1.83
    
5.16
    
6.14
    
5.42
    
n/a
    
n/a
    
n/a
    
n/a
  
Lehman Brothers Government/Credit Index**
    
2.75
    
7.26
    
7.71
    
6.90
    
n/a
    
n/a
    
n/a
    
n/a
  
Lipper Corporate Debt Funds
                                                  
BBB-Rated Average**
    
2.08
    
7.87
    
7.62
    
6.87
    
n/a
    
n/a
    
n/a
    
n/a
  
Seligman Large-Cap Value Portfolio Class 1
    
2.54
    
12.98
    
5.81
    
n/a
    
n/a
    
2.77
%
  
n/a
    
n/a
  
Russell 1000 Value Index**
    
1.76
    
14.06
    
6.55
    
n/a
    
n/a
    
5.17
    
n/a
    
n/a
  
Lipper Large-Cap Value Funds Average**
    
0.21
    
8.74
    
3.87
    
n/a
    
n/a
    
3.42
 ††  
n/a
    
n/a
  
Lipper Multi-Cap Value Funds Average**
    
0.87
    
10.72
    
6.22
    
n/a
    
n/a
    
4.50
 ††  
n/a
    
n/a
  
S&P 500 Index**
    
(0.81
)
  
6.32
    
(2.37
)
  
n/a
    
n/a
    
2.38
    
n/a
    
n/a
  
Seligman Smaller-Cap Value Portfolio:
Class 1
    
(7.89
)
  
3.23
    
16.56
    
n/a
    
n/a
    
14.17
    
n/a
    
n/a
  
Class 2
    
(8.00
)
  
2.84
    
n/a
    
n/a
    
n/a
    
n/a
    
n/a
    
13.35
%
Russell 2000 Value Index**
    
0.90
    
14.39
    
16.11
    
n/a
    
n/a
    
9.21
    
n/a
    
13.67
  
Lipper Small-Cap Core Funds Average**
    
(0.05
)
  
10.48
    
8.36
    
n/a
    
n/a
    
6.82
 ††  
n/a
    
9.44
 ##
Lipper Small-Cap Value Funds Average**
    
0.74
    
12.69
    
15.06
    
n/a
    
n/a
    
8.33
 ††  
n/a
    
13.27
 ##

____________
*
Returns for periods of less than one year are not annualized.
**
See benchmark descriptions on pages 13 and 14.
†
From April 30, 1996.
††
From April 30, 1998.
†††
From April 30, 2000.
#
From August 31, 2000.
##
From May 3, 2001.


2


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Capital Portfolio
Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets 
   
Issues
Cost
  
Value
  
June 30,
2005
December 31,
2004
Common Stocks:
Aerospace and Defense
    
3
  
$
441,934
  
$
568,982
    
4.2
    
2.7
  
Airlines
    
1
    
132,292
    
128,156
    
0.9
    
1.6
  
Beverages
    
1
    
68,276
    
68,664
    
0.5
    
—
  
Biotechnology
    
11
    
712,913
    
720,326
    
5.3
    
7.9
  
Building Products
    
1
    
114,931
    
125,760
    
0.9
    
0.9
  
Capital Markets
    
1
    
75,966
    
75,150
    
0.6
    
—
  
Chemicals
    
1
    
136,415
    
135,912
    
1.0
    
2.4
  
Commercial Banks
    
1
    
108,063
    
108,946
    
0.8
    
—
  
Commercial Services and Supplies
    
5
    
908,578
    
924,516
    
6.8
    
11.0
  
Communications Equipment
    
2
    
98,319
    
107,152
    
0.8
    
2.6
  
Computers and Peripherals
    
3
    
152,449
    
187,980
    
1.4
    
2.9
  
Construction and Engineering
    
2
    
308,494
    
380,533
    
2.8
    
2.0
  
Diversified Consumer Services
    
1
    
61,041
    
75,855
    
0.6
    
—
  
Diversified Financial Services
    
1
    
79,581
    
118,200
    
0.9
    
—
  
Diversified Telecommunication Services
    
1
    
62,494
    
66,560
    
0.5
    
—
  
Electrical Equipment
    
1
    
53,675
    
58,452
    
0.4
    
0.9
  
Electronic Equipment
                                
and Instruments
    
2
    
103,623
    
114,007
    
0.8
    
3.1
  
Energy Equipment and Services
    
3
    
220,574
    
282,860
    
2.1
    
0.7
  
Energy Traders
    
1
    
86,162
    
88,452
    
0.6
    
—
  
Food and Staples Retailing
    
1
    
44,069
    
59,679
    
0.4
    
0.4
  
Food Products
    
3
    
255,513
    
312,396
    
2.3
    
2.7
  
Health Care Equipment and Supplies
    
8
    
601,218
    
647,572
    
4.8
    
4.2
  
Health Care Providers and Services
    
13
    
984,467
    
1,167,677
    
8.6
    
7.0
  
Hotels, Restaurants and Leisure
    
8
    
828,012
    
909,164
    
6.7
    
5.4
  
Household Durables
    
3
    
308,814
    
344,463
    
2.5
    
0.8
  
Internet and Catalog Retail
    
1
    
161,922
    
176,148
    
1.3
    
0.8
  
Internet Software and Services
    
1
    
58,979
    
66,056
    
0.5
    
2.2
  
IT Services
    
4
    
297,140
    
319,454
    
2.3
    
2.9
  
Leisure Equipment and Products
    
1
    
54,401
    
52,717
    
0.4
    
1.0
  
Machinery
    
—
    
—
    
—
    
—
    
0.3
  
Media
    
—
    
—
    
—
    
—
    
1.1
  
Metals and Mining
    
1
    
69,169
    
59,306
    
0.4
    
—
  
Multi-Line Retail
    
—
    
—
    
—
    
—
    
1.1
  
Oil, Gas and Consumable Fuels
    
3
    
379,237
    
470,026
    
3.4
    
1.7
  
Paper and Forest Products
    
—
    
—
    
—
    
—
    
0.8
  
Personal Products
    
2
    
351,856
    
417,876
    
3.1
    
2.4
  
Pharmaceuticals
    
8
    
686,035
    
810,259
    
5.9
    
5.6
  
Semiconductors and
                                
Semiconductor Equipment
    
10
    
919,194
    
955,206
    
7.0
    
4.1
  
Software
    
9
    
857,145
    
889,806
    
6.5
    
4.7
  
Specialty Retail
    
6
    
1,013,253
    
1,322,919
    
9.7
    
8.4
  
Trading Companies and Distributors
    
—
    
—
    
—
    
—
    
1.3
  
Wireless Telecommunication Services
    
2
    
144,859
    
183,032
    
1.3
    
0.6
  
     
126
    
11,941,063
    
13,500,219
    
99.0
    
98.2
  
Short-Term Holding and Other Assets Less Liabilities
    
1
    
136,385
    
136,385
    
1.0
    
1.8
  
Net Assets
     
127
  
$
12,077,448
  
$
13,636,604
    
100.0
    
100.0
  

Largest Portfolio Changes
During the Six Months Ended June 30, 2005
Largest Purchases
Allied Waste Industries*
Dean Foods*
Goodrich*
Allergan*
CKE Restaurants*
Cogent
Paychex*
Ecolab*
Tupperware*
VERITAS Software*

Largest Sales
Manpower**
Tractor Supply
Robert Half International**
TIBCO Software**
Monster Worldwide**
Ask Jeeves**
WellPoint
Airgas**
United Rentals**
Symbol Technologies**

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.

3


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Cash Management Portfolio

Summary of Net Assets
June 30, 2005
           
Percent of Net Assets
   
Issues
  
Value
  
June 30,
2005
  
December 31,
2004
Short-Term Holdings:
US Government Securities
    
4
  
$
4,594,599
    
23.9
    
21.8
  
US Government Agency Securities
    
4
    
3,485,364
    
18.1
    
65.6
  
Fixed Time Deposits
    
5
    
4,845,000
    
25.2
    
—
  
Repurchase Agreement
    
1
    
3,406,000
    
17.7
    
27.6
  
Commercial Paper
    
3
    
2,997,850
    
15.6
    
—
  
     
17
    
19,328,813
    
100.5
    
115.0
  
Other Assets Less Liabilities
    
—
    
(86,890
)
 
(0.5
)
 
(15.0
)
Net Assets
     
17
  
$
19,241,923
    
100.0
    
100.0
  

4


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Common Stock Portfolio
Diversification of Net Assets
June 30, 2005
 
               
Percent of Net Assets
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004
Common Stocks:
Aerospace and Defense
    
2
  
$
122,560
  
$
135,391
    
1.5
    
0.6
  
Air Freight and Logistics
    
1
    
47,197
    
40,505
    
0.4
    
—
  
Auto Components
    
—
    
—
    
—
    
—
    
0.8
  
Beverages
    
2
    
240,234
    
227,717
    
2.4
    
2.8
  
Biotechnology
    
2
    
202,091
    
158,405
    
1.7
    
1.2
  
Building Products
    
1
    
41,753
    
47,640
    
0.5
    
0.5
  
Capital Markets
    
4
    
322,749
    
317,693
    
3.4
    
3.0
  
Chemicals
    
3
    
191,794
    
210,268
    
2.3
    
2.1
  
Commercial Banks
    
3
    
215,575
    
225,211
    
2.4
    
3.4
  
Commercial Services and Supplies
    
2
    
164,489
    
168,235
    
1.8
    
1.8
  
Communications Equipment
    
5
    
481,094
    
471,103
    
5.0
    
3.8
  
Computers and Peripherals
    
3
    
254,169
    
250,800
    
2.7
    
4.9
  
Consumer Finance
    
2
    
145,387
    
188,698
    
2.0
    
1.9
  
Containers and Packaging
    
1
    
121,780
    
86,147
    
0.9
    
—
  
Diversified Consumer Services
    
1
    
44,332
    
49,580
    
0.5
    
—
  
Diversified Financial Services
    
3
    
463,876
    
491,745
    
5.3
    
3.9
  
Diversified Telecommunication Services
    
4
    
285,971
    
280,220
    
3.0
    
2.2
  
Electric Utilities
    
2
    
128,534
    
148,268
    
1.6
    
0.5
  
Electronic Equipment and Instruments
    
1
    
47,294
    
40,467
    
0.4
    
0.6
  
Energy Equipment and Services
    
5
    
131,840
    
154,911
    
1.7
    
0.9
  
Energy Traders
    
1
    
34,849
    
56,487
    
0.6
    
—
  
Food and Staples Retailing
    
2
    
293,706
    
276,000
    
3.0
    
3.7
  
Food Products
    
—
    
—
    
—
    
—
    
1.3
  
Health Care Equipment and Supplies
    
2
    
115,322
    
108,048
    
1.2
    
0.4
  
Health Care Providers and Services
    
1
    
36,069
    
55,712
    
0.6
    
1.9
  
Hotels, Restaurants and Leisure
    
2
    
98,403
    
116,922
    
1.2
    
2.3
  
Household Products
    
2
    
131,323
    
149,770
    
1.6
    
2.4
  
Index Derivatives
    
—
    
—
    
—
    
—
    
0.7
  
Industrial Conglomerates
    
2
    
397,780
    
492,536
    
5.3
    
5.3
  
Insurance
    
2
    
232,106
    
253,092
    
2.7
    
5.1
  
Internet and Catalog Retail
    
1
    
31,867
    
36,999
    
0.4
    
0.8
  
Internet Software and Services
    
2
    
61,308
    
72,901
    
0.8
    
1.0
  
Machinery
    
2
    
109,363
    
133,240
    
1.4
    
1.7
  
Media
    
6
    
535,823
    
512,015
    
5.5
    
3.5
  
Metals and Mining
    
2
    
135,264
    
116,610
    
1.2
    
1.7
  
Multi-Line Retail
    
2
    
97,273
    
102,196
    
1.1
    
0.5
  
Multi-Utilities and Unregulated Power
    
—
    
—
    
—
    
—
    
0.9
  
Oil, Gas and Consumable Fuels
    
9
    
457,883
    
619,354
    
6.6
    
3.9
  
Paper and Forest Products
    
—
    
—
    
—
    
—
    
0.6
  
Personal Products
    
1
    
45,256
    
45,567
    
0.5
    
—
  
Pharmaceuticals
    
7
    
719,896
    
711,458
    
7.6
    
10.4
  
 
(Continued on page 6.)

Largest Portfolio Changes
During the Six Months Ended June 30, 2005


Largest Purchases
Pharmion*
Smurfit-Stone Container*
Comcast (Class A)*
Morgan Stanley
Cendant*
Honeywell International*
Citizens Communications*
Novell*
Sprint*
JPMorgan Chase

Largest Sales
Carnival**
Wachovia
Novartis (ADR)
Altria Group
Procter & Gamble
Verizon Communications
Andrx
Merck**
Dean Foods**
Prudential Financial

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.

5
 
Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Common Stock Portfolio

Diversification of Net Assets (continued)
June 30, 2005
               
Percent of Net Assets
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004
Common Stocks (continued)
Semiconductors and
                                
Semiconductor Equipment
    
3
  
$
193,743
  
$
206,220
    
2.2
    
3.2
  
Software
    
4
    
683,044
    
515,857
    
5.5
    
5.4
  
Specialty Retail
    
3
    
129,543
    
149,909
    
1.6
    
1.1
  
Thrifts and Mortgage Finance
    
2
    
177,432
    
175,507
    
1.9
    
1.7
  
Tobacco
    
1
    
148,031
    
217,904
    
2.3
    
2.9
  
Wireless Telecommunication Services
    
2
    
118,454
    
180,916
    
1.9
    
1.9
  
Total Common Stocks
    
108
    
8,636,457
    
8,998,224
    
96.2
    
99.2
  
Put Options Purchased
    
2
    
1,355
    
1,458
    
—
    
—
  
Short-Term Holding and Other Assets Less Liabilities
    
1
    
355,353
    
355,353
    
3.8
    
0.8
  
Net Assets
    
111
  
$
8,993,165
  
$
9,355,035
    
100.0
    
100.0
  


6

Seligman Portfolios, Inc.
Performance and Portfolio Overview
 
Seligman Communications and Information Portfolio
Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets 
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004†
Common Stocks:
Application Software
    
5
  
$
5,865,508
  
$
4,732,745
    
8.0
    
5.9
  
Biotechnology
    
—
    
—
    
—
    
—
    
2.1
  
Commercial Services and Supplies
    
1
    
628,128
    
625,333
    
1.1
    
—
  
Communications Equipment
    
8
    
6,076,435
    
5,813,300
    
9.8
    
9.0
  
Computers and Peripherals
    
7
    
3,817,336
    
3,654,961
    
6.2
    
6.9
  
Consumer Software
    
2
    
2,129,050
    
2,276,657
    
3.9
    
3.9
  
Diversified Telecommunication Services
    
2
    
835,748
    
864,249
    
1.5
    
0.8
  
Electronic Equipment
                                
and Instruments
    
4
    
1,871,799
    
1,975,126
    
3.3
    
3.3
  
Health Care Equipment and Supplies
    
5
    
3,419,083
    
3,366,882
    
5.7
    
7.7
  
Health Care Providers and Services
    
1
    
485,120
    
818,360
    
1.4
    
3.3
  
Internet and Catalog Retail
    
—
    
—
    
—
    
—
    
2.9
  
Internet Software and Services
    
5
    
4,606,724
    
4,436,453
    
7.5
    
4.0
  
IT Services
    
4
    
4,412,752
    
4,404,366
    
7.5
    
7.8
  
Leisure Equipment and Products
    
—
    
—
    
—
    
—
    
0.7
  
Media
    
1
    
891,982
    
834,360
    
1.4
    
1.1
  
Semiconductors and Semiconductor Equipment
    
9
    
7,158,775
    
8,859,097
    
15.0
    
12.9
  
Systems Software
    
6
    
12,157,634
    
11,827,998
    
20.0
    
16.7
  
Technical Software
    
2
    
5,148,258
    
3,751,656
    
6.3
    
4.3
  
     
62
    
59,504,332
    
58,241,543
    
98.6
    
93.3
  
Short-Term Holding and Other Assets Less Liabilities
    
1
    
837,463
    
835,786
    
1.4
    
6.7
  
Net Assets
    
63
  
$
60,341,795
  
$
59,077,329
    
100.0
    
100.0
  

____________
†  Restated to conform to current period’s classifications.

Largest Portfolio Changes
During the Six Months Ended June 30, 2005

Largest Purchases
VERITAS Software
Advanced Micro Devices
Cadence Design Systems*
Cytyc*
EMC
THQ*
McAfee*
Seagate Technology*
Kinetic Concepts*
Oracle

Largest Sales
Boston Scientific**
Take-Two Interactive Software
Citrix Systems**
Hewlett-Packard
Ask Jeeves**
Quest Diagnostics**
Invitrogen**
Fisher Scientific International
Intel**
eBay**

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.

7

Seligman Portfolios, Inc.
Performance and Portfolio Overview
 
Seligman Global Technology Portfolio
Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004†
Common Stocks:
Application Software
    
3
  
$
657,113
  
$
611,083
    
7.4
    
10.8
  
Biotechnology
    
—
    
—
    
—
    
—
    
1.3
  
Building Products
    
1
    
67,227
    
62,861
    
0.8
    
—
  
Chemicals
    
3
    
163,013
    
166,566
    
2.0
    
1.1
  
Commercial Services and Supplies
    
1
    
43,260
    
43,028
    
0.5
    
—
  
Communications Equipment
    
8
    
854,970
    
865,246
    
10.5
    
10.5
  
Computers and Peripherals
    
7
    
617,759
    
637,361
    
7.7
    
8.5
  
Consumer Software
    
2
    
290,799
    
319,788
    
3.9
    
2.1
  
Diversified Telecommunication Services
    
2
    
128,113
    
135,741
    
1.6
    
1.3
  
Electronic Equipment and Instruments
    
8
    
529,966
    
574,698
    
7.0
    
8.1
  
Health Care Equipment and Supplies
    
3
    
156,387
    
179,200
    
2.2
    
3.6
  
Health Care Providers and Services
    
1
    
82,010
    
129,740
    
1.6
    
3.2
  
Household Durables
    
2
    
181,878
    
161,403
    
2.0
    
0.5
  
Internet and Catalog Retail
    
—
    
—
    
—
    
—
    
1.7
  
Internet Software and Services
    
6
    
496,402
    
492,928
    
6.0
    
4.2
  
IT Services
    
7
    
623,779
    
709,740
    
8.6
    
10.2
  
Leisure Equipment and Products
    
1
    
41,922
    
41,370
    
0.5
    
0.5
  
Office Electronics
    
1
    
41,475
    
41,903
    
0.5
    
1.5
  
Semiconductors and Semiconductor Equipment
    
10
    
889,920
    
1,046,113
    
12.7
    
12.2
  
Systems Software
    
6
    
1,329,538
    
1,347,737
    
16.4
    
12.6
  
Technical Software
    
2
    
388,143
    
293,098
    
3.6
    
2.0
  
     
74
    
7,583,674
    
7,859,604
    
95.5
    
95.9
  
Other Assets Less Liabilities
    
—
    
372,139
    
371,554
    
4.5
    
4.1
  
Net Assets
    
74
  
$
7,955,813
  
$
8,231,158
    
100.0
    
100.0
  

____________
†  Restated to conform to current period’s classifications.

Largest Portfolio Changes
During the Six Months Ended June 30, 2005
Largest Purchases
VERITAS Software
EMC
Advanced Micro Devices
THQ*
McAfee*
Seagate Technology*
Oracle Digital River*
Garmin*
Symantec*

Largest Sales
Hewlett-Packard**
Citrix Systems**
HOYA**
Dell**
Quest Diagnostics**
Ask Jeeves**
eBay**
SAP**
Broadcom (Class A)**
Intel**

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.

8


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman International Growth Portfolio

Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets
   
Issues 
Cost
  
Value
  
June 30,
2005
  
December 31,
2004
Common Stocks:
Aerospace and Defense
    
1
  
$
56,952
  
$
62,116
    
1.8
    
4.4
  
Airlines
    
2
    
45,385
    
45,869
    
1.3
    
—
  
Automobiles
    
—
    
—
    
—
    
—
    
3.1
  
Beverages
    
1
    
59,511
    
66,507
    
1.9
    
1.2
  
Building Products
    
—
    
—
    
—
    
—
    
0.9
  
Capital Markets
    
1
    
68,917
    
63,756
    
1.9
    
1.8
  
Commercial Banks
    
6
    
324,858
    
319,927
    
9.3
    
12.4
  
Commercial Services and Supplies
    
1
    
67,593
    
72,079
    
2.1
    
2.0
  
Communications Equipment
    
4
    
188,188
    
199,537
    
5.8
    
8.8
  
Construction and Engineering
    
1
    
21,820
    
29,495
    
0.9
    
0.5
  
Consumer Finance
    
1
    
13,746
    
14,953
    
0.4
    
—
  
Diversified Telecommunication Services
    
1
    
27,479
    
25,443
    
0.7
    
2.1
  
Electronic Equipment
                                
and Instruments
    
5
    
343,652
    
365,556
    
10.6
    
1.2
  
Energy Equipment and Services
    
—
    
—
    
—
    
—
    
1.7
  
Food and Staples Retailing
    
2
    
148,004
    
147,359
    
4.3
    
1.0
  
Food Products
    
2
    
36,838
    
43,469
    
1.3
    
1.9
  
Health Care Equipment and Supplies
    
1
    
52,147
    
55,708
    
1.6
    
2.1
  
Hotels, Restaurants and Leisure
    
—
    
—
    
—
    
—
    
3.6
  
Household Durables
    
1
    
15,517
    
15,173
    
0.4
    
1.1
  
Household Products
    
1
    
34,969
    
31,134
    
0.9
    
—
  
Insurance
    
2
    
98,936
    
97,939
    
2.8
    
2.1
  
Internet and Catalog Retail
    
—
    
—
    
—
    
—
    
1.6
  
IT Services
    
—
    
—
    
—
    
—
    
1.5
  
Machinery
    
—
    
—
    
—
    
—
    
0.8
  
Marine
    
1
    
29,044
    
36,809
    
1.1
    
1.0
  
Media
    
5
    
318,512
    
341,158
    
9.9
    
8.0
  
Metals and Mining
    
1
    
18,428
    
17,568
    
0.5
    
—
  
Multi-Line Retail
    
—
    
—
    
—
    
—
    
1.4
  
Oil, Gas and Consumable Fuels
    
4
    
227,368
    
240,030
    
7.0
    
4.9
  
Pharmaceuticals
    
4
    
234,964
    
242,819
    
7.1
    
6.5
  
Real Estate
    
1
    
30,544
    
61,971
    
1.8
    
2.1
  
Road and Rail
    
2
    
65,625
    
72,757
    
2.1
    
1.3
  
Semiconductors and Semiconductor Equipment
    
1
    
44,487
    
48,929
    
1.4
    
0.4
  
Software
    
2
    
119,339
    
125,331
    
3.6
    
2.9
  
Specialty Retail
    
4
    
125,532
    
165,771
    
4.8
    
4.3
  
Textiles, Apparel and Luxury Goods
    
4
    
148,399
    
149,908
    
4.4
    
3.4
  
Tobacco
    
2
    
80,348
    
114,360
    
3.3
    
4.3
  
Transportation Infrastructure
    
1
    
55,740
    
58,434
    
1.7
    
1.5
  
Wireless Telecommunication Services
    
1
    
31,292
    
31,396
    
0.9
    
2.0
  
     
66
    
3,134,134
    
3,363,261
    
97.6
    
99.8
  
Other Assets Less Liabilities
    
—
    
81,040
    
81,311
    
2.4
    
0.2
  
Net Assets
    
66
  
$
3,215,174
  
$
3,444,572
    
100.0
    
100.0
  


Largest Portfolio Changes
During the Six Months Ended June 30, 2005

Largest Purchases
AU Optronics (ADR)*
Chi Mei Optoelectronics*
Roche Holding*
Eni*
Ahold
L.G. Philips LCD*
UBS*
SAP*
Merck KGaA*
Petro-Canada

Largest Sales
Alcatel**
Trend Micro**
Rolls-Royce Group**
Allianz**
Total**
Elan (ADR)**
Telefonaktiebolaget LM Ericsson (ADR)**
Autostrade**
Galeries Lafayette**
Carnival**

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.

9


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Investment Grade Fixed Income Portfolio

Diversification of Net Assets
June 30, 2005
           
Percent of Net Assets
   
Issues
  
Value
  
June 30,
2005
  
December 31,
2004
US Government and Government Agency Securities
    
25
  
$
2,233,696
    
62.6
    
54.5
  
Corporate Fixed-Income Securities:
Aerospace and Defense
    
2
    
30,665
    
0.9
    
0.2
  
Automobiles
    
—
    
—
    
—
    
1.2
  
Beverages
    
2
    
72,650
    
2.0
    
0.7
  
Biotechnology
    
1
    
14,901
    
0.4
    
—
  
Capital Markets
    
4
    
89,855
    
2.5
    
2.5
  
Chemicals
    
—
    
—
    
—
    
1.4
  
Commercial Banks
    
3
    
81,272
    
2.3
    
2.9
  
Commercial Services and Supplies
    
—
    
—
    
—
    
0.6
  
Communications Equipment
    
1
    
22,120
    
0.6
    
—
  
Computers and Peripherals
    
—
    
—
    
—
    
0.9
  
Construction and Engineering
    
2
    
70,560
    
2.0
    
—
  
Consumer Finance
    
3
    
114,594
    
3.2
    
7.0
  
Diversified Financial Services
    
6
    
157,307
    
4.4
    
2.3
  
Diversified Telecommunication Services
    
3
    
45,970
    
1.3
    
1.3
  
Electric Utilities
    
1
    
102,111
    
2.9
    
2.9
  
Energy Traders
    
1
    
26,291
    
0.7
    
—
  
Food and Staples Retailing
    
1
    
46,785
    
1.3
    
1.3
  
Health Care Providers and Services
    
1
    
43,984
    
1.2
    
1.2
  
Household Durables
    
—
    
—
    
—
    
1.1
  
Household Products
    
—
    
—
    
—
    
1.9
  
Media
    
3
    
66,587
    
1.9
    
1.9
  
Multi-Utilities and Unregulated Power
    
6
    
183,381
    
5.2
    
3.6
  
Oil, Gas and Consumable Fuels
    
1
    
55,212
    
1.6
    
—
  
Thrifts and Mortgage Finance
    
1
    
20,030
    
0.6
    
1.3
  
Wireless Telecommunication Services
    
2
    
69,024
    
1.9
    
2.0
  
Total Corporate Fixed-Income Securities
    
44
    
1,313,299
    
36.9
    
38.2
  
Other Assets Less Liabilities
    
—
    
17,739
    
0.5
    
7.3
  
Net Assets
    
69
  
$
3,564,734
    
100.0
    
100.0
  

Largest Portfolio Changes
During the Six Months Ended June 30, 2005
Largest Purchases
US Treasury Notes 4.25%, 11/15/2014
Fannie Mae:
5%, 4/16/2010*
4.125%, 6/16/2008*
4.5%, 1/25/2032*
US Treasury Notes 4.125%, 5/15/2015*
Fannie Mae:
5%, 3/2/2015*
3.8%, 1/18/2008*
Freddie Mac 4.375%, 3/1/2010*
Fannie Mae 6%, 11/1/2034*
Freddie Mac 5.2%, 3/5/2019*

Largest Sales
Freddie Mac 4.5%, 8/1/2033**
US Treasury Notes:
2.625%, 11/15/2006**
3.125%, 4/15/2009**
Fannie Mae:
5%, 5/1/2034**
2.81%, 9/28/2006**
US Treasury Notes 3.125%, 10/15/2008**
Fannie Mae 5.5%, 8/1/2033**
Procter & Gamble 6.875%, 9/15/2009**
Freddie Mac Gold 5.5%, 4/1/2029**
US Treasury Notes 3.5%, 11/15/2009**

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.

10


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Large-Cap Value Portfolio

Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004
Common Stocks:
Aerospace and Defense
    
2
  
$
218,512
  
$
337,200
    
6.1
    
6.1
  
Automobiles
    
—
    
—
    
—
    
—
    
2.8
  
Capital Markets
    
1
    
183,300
    
143,900
    
2.6
    
4.0
  
Chemicals
    
3
    
282,469
    
383,236
    
7.0
    
7.0
  
Commercial Banks
    
2
    
286,789
    
357,640
    
6.5
    
7.0
  
Communications Equipment
    
1
    
143,186
    
147,032
    
2.7
    
2.8
  
Computers and Peripherals
    
1
    
179,844
    
133,560
    
2.4
    
3.3
  
Diversified Financial Services
    
1
    
176,519
    
158,940
    
2.9
    
3.3
  
Energy Traders
    
1
    
97,143
    
229,320
    
4.2
    
3.6
  
Food and Staples Retailing
    
1
    
126,722
    
156,572
    
2.8
    
3.6
  
Health Care Equipment and Supplies
    
2
    
295,509
    
329,740
    
6.0
    
5.4
  
Health Care Providers and Services
    
1
    
140,185
    
170,010
    
3.1
    
—
  
Industrial Conglomerates
    
1
    
121,720
    
138,600
    
2.5
    
2.7
  
Insurance
    
4
    
586,050
    
656,381
    
11.9
    
11.7
  
Machinery
    
1
    
126,953
    
171,558
    
3.1
    
3.3
  
Multi-Line Retail
    
1
    
54,797
    
157,740
    
2.9
    
3.1
  
Oil, Gas and Consumable Fuels
    
2
    
158,482
    
365,535
    
6.6
    
5.9
  
Paper and Forest Products
    
1
    
145,235
    
159,000
    
2.9
    
3.5
  
Personal Products
    
1
    
165,072
    
151,400
    
2.8
    
—
  
Pharmaceuticals
    
1
    
177,275
    
160,200
    
2.9
    
3.1
  
Road and Rail
    
2
    
290,713
    
339,120
    
6.2
    
6.3
  
Software
    
1
    
53,900
    
52,860
    
1.0
    
—
  
Specialty Retail
    
1
    
103,399
    
98,750
    
1.8
    
2.0
  
Thrifts and Mortgage Finance
    
1
    
103,123
    
142,415
    
2.6
    
5.8
  
Tobacco
    
1
    
90,440
    
174,582
    
3.2
    
3.4
  
     
34
    
4,307,337
    
5,315,291
    
96.7
    
99.7
  
Short-Term Holding and Other Assets Less Liabilities
    
1
    
180,061
    
180,061
    
3.3
    
0.3
  
Net Assets
    
35
  
$
4,487,398
  
$
5,495,352
    
100.0
    
100.0
  

Largest Portfolio Changes
During the Six Months Ended June 30, 2005

Largest Purchases
Avon Products*
HCA*
Rohm and Haas*
Amdocs*
Union Pacific
Honeywell International
Baxter International
UnumProvident

Largest Sales
Fannie Mae**
Ford Motor**
Valero Energy
Allstate
J.C. Penney
The Bank of New York
CSX
Praxair
Costco Wholesale
Altria Group

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.

11


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Smaller-Cap Value Portfolio

Diversification of Net Assets
June 30, 2005
               
Percent of Net Assets
   
Issues
  
Cost
  
Value
  
June 30,
2005
  
December 31,
2004
Common Stocks:
Aerospace and Defense
    
1
  
$
5,332,442
  
$
5,322,000
    
2.1
    
2.5
  
Airlines
    
1
    
5,696,103
    
6,241,600
    
2.4
    
2.7
  
Beverages
    
1
    
1,674,793
    
4,720,000
    
1.8
    
1.2
  
Biotechnology
    
2
    
6,602,919
    
8,808,623
    
3.4
    
4.2
  
Building Products
    
1
    
6,146,952
    
6,080,000
    
2.3
    
—
  
Chemicals
    
6
    
23,112,091
    
31,352,750
    
12.1
    
14.9
  
Commercial Services and Supplies
    
3
    
11,356,183
    
19,475,550
    
7.5
    
10.0
  
Communications Equipment
    
2
    
11,694,807
    
9,271,977
    
3.6
    
2.4
  
Computers and Peripherals
    
1
    
7,394,494
    
4,328,800
    
1.7
    
2.8
  
Containers and Packaging
    
1
    
2,750,946
    
2,027,000
    
0.8
    
0.9
  
Diversified Consumer Services
    
1
    
4,035,293
    
6,028,000
    
2.3
    
—
  
Electrical Equipment
    
1
    
3,826,714
    
4,172,143
    
1.6
    
1.5
  
Electronic Equipment and Instruments
    
1
    
2,658,708
    
7,015,500
    
2.7
    
2.2
  
Energy Equipment and Services
    
2
    
9,405,367
    
11,340,300
    
4.4
    
4.3
  
Food Products
    
1
    
1,879,289
    
5,706,000
    
2.2
    
1.9
  
Health Care Providers and Services
    
2
    
10,198,224
    
11,306,700
    
4.4
    
6.7
  
Hotels, Restaurants and Leisure
    
2
    
11,407,108
    
11,537,500
    
4.5
    
2.2
  
Household Durables
    
1
    
1,200,025
    
4,474,800
    
1.7
    
2.3
  
Insurance
    
5
    
16,130,883
    
20,424,907
    
7.9
    
5.3
  
IT Services
    
1
    
7,348,104
    
3,575,000
    
1.4
    
1.8
  
Machinery
    
3
    
15,383,206
    
17,310,600
    
6.7
    
6.9
  
Media
    
1
    
2,783,798
    
4,627,664
    
1.8
    
1.1
  
Metals and Mining
    
—
    
—
    
—
    
—
    
2.4
  
Multi-Line Retail
    
1
    
6,672,606
    
5,307,200
    
2.0
    
1.8
  
Oil, Gas and Consumable Fuels
    
1
    
2,280,193
    
7,025,400
    
2.7
    
—
  
Paper and Forest Products
    
1
    
2,774,501
    
1,942,200
    
0.7
    
0.9
  
Pharmaceuticals
    
1
    
5,305,452
    
5,885,550
    
2.3
    
2.1
  
Road and Rail
    
1
    
1,979,950
    
5,008,900
    
1.9
    
1.9
  
Semiconductors and Semiconductor Equipment
    
2
    
11,913,986
    
10,948,250
    
4.2
    
4.1
  
Software
    
—
    
—
    
—
    
—
    
3.3
  
Specialty Retail
    
3
    
16,074,818
    
15,858,975
    
6.1
    
2.4
  
Thrifts and Mortgage Finance
    
—
    
—
    
—
    
—
    
3.4
  
     
50
    
215,019,955
    
257,123,889
    
99.2
    
100.1
  
Short-Term Holding and Other Assets Less Liabilities
    
1
    
1,998,429
    
1,998,429
    
0.8
    
(0.1
)
Net Assets
    
51
  
$
217,018,384
  
$
259,122,318
    
100.0
    
100.0
  

Largest Portfolio Changes
During the Six Months Ended June 30, 2005

Largest Purchases
York International*
Plantronics*
Blockbuster (Class A)*
HealthSouth*
Pacific Sunwear of California*
WMS Industries*
Infinity Property & Casualty*
CV Therapeutics*
Max Re Capital*
Smurfit-Stone Container

Largest Sales
Commercial Federal**
Eon Labs**
Select Medical**
Lyondell Chemical
Mentor Graphics**
Crompton
Enzon Pharmaceuticals**
The PMI Group**
Stewart & Stevenson Services
Accelrys**

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.

12


Seligman Portfolios, Inc.
Benchmarks

Lipper Averages

Corporate Debt Funds BBB-Rated is an average of funds that invest primarily in corporate and government debt issues rated in the top four grades.

Global Funds is an average of funds that invest at least 25% of its portfolio in securities traded outside of the United States and that may own U.S. securities as well.

International Funds is an average of funds that invest their assets in securities with primary trading markets outside of the United States.

International Multi-Cap Growth Funds is an average of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have 25% to 75% of their assets invested in companies strictly outside of the United States with market capitalizations (on a three-year weighted basis) greater than the 250th-largest company in the S&P/Citigroup World ex-U.S. Broad Market Index. Multi-cap growth funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup World ex-U.S. BMI.

Large-Cap Core Funds is an average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($13.5 billion as of June 30, 2005). Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

Large-Cap Value Funds is an average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($13.5 billion as of June 30, 2005). Large-cap value funds typically have a below average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

Mid-Cap Funds is an average of funds that by prospectus or portfolio practice invest primarily in companies with market capitalizations less than $5 billion at the time of purchase.

Lipper Averages (continued)

Mid-Cap Growth Funds is an average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($13.5 billion as of June 30, 2005). Mid-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index.

Multi-Cap Value Funds is an average of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) over 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($13.5 billion as of June 30, 2005). Multi-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index

Science & Technology Funds is an average of funds that invest at least 65% of its equity portfolio in science and technology stocks.

Small-Cap Core Funds is an average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($3.4 billion as of June 30, 2005). Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index.

Small-Cap Value Funds is an average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the middle 1,000 securities of the S&P SuperComposite 1500 Index ($3.4 billion as of June 30, 2005). Small-cap value funds typically have a below average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index.

_____________
See footnotes on page 14.

13


Seligman Portfolios, Inc.
Benchmarks
Indices

Goldman Sachs Technology Indexes are a family of equity indexes designed as equity benchmarks for U.S. traded technology and internet-related securities.

Lehman Brothers Government/Credit Index is composed of all bonds that are investment grade (rated Baa or higher by Moody’s or BBB or higher by S&P, if unrated by Moody’s), with at lease one year to maturity.

MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US and Canada. As of May 2005, it consisted of 21 developed market country indices.

MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of May 2005, it consisted of 23 developed market country indices.

MSCI World Information Technology Index is a free float-adjusted market capitalization index designed to measure information technology stocks in the global developed equity market.

Indices (continued)

Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted values. The stocks are also members of the Russell 1000 Growth Index.

S&P 500 Index measures the performance of 500 of the largest US companies based on market capitalization.

_____________
Adapted from materials from the websites of Lipper, Goldman Sachs, Lehman, Morgan Stanley, Russell, and Standard & Poor’s.

The averages and indices are unmanaged benchmarks that assume reinvestment of distributions. The performance of the averages and indices excludes the effect of taxes and sales charges. The performance of the indices also excludes fees. Investors cannot invest directly in an average or an index.

14


Seligman Portfolios, Inc.
Understanding and Comparing Your Portfolio’s Expenses

As an investor in a Portfolio of the Fund, you incur ongoing expenses, such as management fees, distribution and/or service (12b-1) fees, and other fund expenses. The information below is intended to help you understand your ongoing expenses (in dollars) of investing in a Portfolio and to compare them with the ongoing expenses of investing in other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing expenses of investing in a Portfolio only and do not reflect any costs that may be charged by insurance compainies’ separate accounts or by any pension or retirement plan. Therefore, the table is useful in comparing ongoing expenses only, and will not help you to determine the relative total expenses of owning different funds. In addition, if these costs were included, your total expenses would have been higher.

The table is based on an investment of $1,000 invested at the beginning of January 1, 2005 and held for the entire six-month period ended June 30, 2005.

Actual Expenses
The table below provides information about actual expenses and actual account values. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value at the beginning of the period by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” for the share class of the Portfolio that you own to estimate the expenses that you paid on your account during the period.

Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical expenses and hypothetical account values based on the actual expense ratio of each Portfolio’s class and an assumed rate of return of 5% per year before expenses, which is not the actual return of any Portfolio. The hypothetical expenses and account values may not be used to estimate the ending account value or the actual expenses you paid for the period. You may use this information to compare the ongoing expenses of investing in a Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
 

               
 Actual
  
Hypothetical
  
Portfolio
  
Beginning
Account
Value
1/1/05
  
Annualized
Expense
Ratio*
  
Annualized
Expense
Reimbursement
Ratio†
  
Ending
Account
Value
6/30/05
  
Expenses Paid
During Period**
1/1/05 to
6/30/05
  
Ending
Account
Value
6/30/05
  
Expenses Paid
During Period**
1/1/05 to
6/30/05
  
Capital
Class 1
  
$
1,000.00
    
1.05%
 
      
$
1,029.40
  
$
5.28
  
$
1,019.59
  
$
5.26
  
Class 2
    
1,000.00
    
1.30
          
1,028.90
    
6.54
    
1,018.35
    
6.51
  
Cash Management
    
1,000.00
    
0.70
    
0.15%
 
  
1,009.40
    
3.49
    
1,021.32
    
3.51
  
Common Stock
    
1,000.00
    
0.82
          
983.40
    
4.03
    
1,020.73
    
4.11
  
Communications and Information
Class 1
    
1,000.00
    
1.10
          
965.20
    
5.36
    
1,019.34
    
5.51
  
Class 2
    
1,000.00
    
1.35
          
963.20
    
6.57
    
1,018.10
    
6.76
  
Global Technology
Class 1
    
1,000.00
    
1.90
    
0.56
    
953.70
    
9.20
    
1,015.37
    
9.49
  
Class 2
    
1,000.00
    
2.05
    
0.56
    
952.70
    
9.93
    
1,014.63
    
10.24
  
International Growth
    
1,000.00
    
2.00
    
3.60
    
921.60
    
9.53
    
1,014.88
    
9.99
  
Investment Grade
    
1,000.00
    
0.85
    
0.66
    
1,018.30
    
4.25
    
1,020.58
    
4.26
  
Large-Cap Value
    
1,000.00
    
1.37
          
1,025.40
    
6.88
    
1,018.00
    
6.85
  
Smaller-Cap Value
Class 1
    
1,000.00
    
1.15
          
921.10
    
5.48
    
1,019.09
    
5.76
  
Class 2
    
1,000.00
    
1.34
          
920.00
    
6.38
    
1,018.15
    
6.71
  

____________
*
Expenses of Class 2 shares differ from the expenses of Class 1 shares due to the differences in 12b-1 fees paid. See the Fund’s prospectus for a description of each share class and its expenses.
**
Expenses are equal to the Portfolio’s annualized expense ratio based on actual expenses for the period January 1, 2005 to June 30, 2005, multiplied by the average account value over the period, multiplied by 181/365 (number of days in the period).
†
The Manager, at its discretion, has agreed to reimburse expenses, other than management and 12b-1 fees, that exceed a certain rate per annum of the average daily net assets of certain Portfolios. Absent such reimbursement, the expense ratios and expenses paid for the period would have been higher. See note 4 to the Financial Statements on page 38 of this report for additional information.

15


Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Capital Portfolio
 
   
Shares
  
Value
Common Stocks 99.0%
        
Aerospace and Defense 4.2%
            
Goodrich
    
5,000
  
$
204,800
Precision Castparts
    
2,900
    
225,910
Rockwell Collins
    
2,900
    
138,272
           
568,982
Airlines 0.9%
            
Southwest Airlines
    
9,200
    
128,156
Beverages 0.5%
            
Pepsi Bottling Group
    
2,400
    
68,664
Biotechnology 5.3%
            
Affymetrix*
    
1,900
    
102,458
Celgene*
    
1,300
    
52,949
Charles River Laboratories International*
    
700
    
33,775
Chiron*
    
1,200
    
41,874
CV Therapeutics*
    
3,900
    
87,341
Encysive Pharmaceuticals*
    
3,600
    
38,934
ImClone Systems*
    
1,000
    
31,020
Martek Biosciences*
    
3,700
    
140,470
MedImmune*
    
4,450
    
118,926
Pharmion*
    
2,700
    
62,654
Rigel Pharmaceuticals*
    
500
    
9,925
           
720,326
Building Products 0.9%
            
American Standard
    
3,000
    
125,760
Capital Markets 0.6%
            
T. Rowe Price Group
    
1,200
    
75,150
Chemicals 1.0%
            
Ecolab
    
4,200
    
135,912
Commercial Banks 0.8%
            
Synovus Financial
    
3,800
    
108,946
Commercial Services and Supplies 6.8%
            
Allied Waste Industries*
    
25,800
    
204,594
Avery Dennison
    
1,000
    
52,960
Cintas
    
6,400
    
247,200
Corrections Corporation of America*
    
1,500
    
58,875
Herman Miller
    
11,700
    
360,887
           
924,516
Communications Equipment 0.8%
            
ADTRAN
    
1,900
    
47,091
SiRF Technology Holdings*
    
3,400
    
60,061
           
107,152
Computers and Peripherals 1.4%
            
Network Appliance*
    
3,700
    
104,617
Sun Microsystems
    
11,000
    
40,755
UNOVA*
    
1,600
    
42,608
           
187,980
 
   
Shares
  
Value
Construction and Engineering 2.8%
        
Fluor
    
2,700
  
$
155,493
Jacobs Engineering Group*
    
4,000
    
225,040
           
380,533
Diversified Consumer Services 0.6%
            
H&R Block
    
1,300
    
75,855
Diversified Financial Services 0.9%
            
Chicago Mercantile Exchange Holdings
    
400
    
118,200
Diversified Telecommunication Services 0.5%
            
NeuStar (Class A)*
    
2,600
    
66,560
Electrical Equipment 0.4%
            
Rockwell Automation
    
1,200
    
58,452
Electronic Equipment and Instruments 0.8%
            
Jabil Circuit*
    
2,800
    
86,044
Xyratex*
    
1,800
    
27,963
           
114,007
Energy Equipment and Services 2.1%
            
Baker Hughes
    
1,500
    
76,740
BJ Services
    
1,500
    
78,720
Smith International
    
2,000
    
127,400
           
282,860
Energy Traders 0.6%
            
AES*
    
5,400
    
88,452
Food and Staples Retailing 0.4%
            
NeighborCare*
    
1,800
    
59,679
Food Products 2.3%
            
Dean Foods*
    
4,900
    
172,676
Hershey
    
1,800
    
111,780
TreeHouse Foods*
    
980
    
27,940
           
312,396
Health Care Equipment and Supplies 4.8%
            
C.R. Bard
    
1,600
    
106,416
Conor Medsystems*
    
4,100
    
62,832
Fisher Scientific International*
    
2,100
    
136,290
Gen-Probe*
    
1,500
    
54,368
Hologic*
    
700
    
27,874
I-Flow*
    
4,300
    
71,831
Respironics*
    
1,900
    
68,505
Varian Medical Systems*
    
3,200
    
119,456
           
647,572
Health Care Providers and Services 8.6%
            
AmerisourceBergen
    
1,100
    
76,065
Caremark Rx*
    
3,300
    
146,916
Cerner*
    
1,050
    
71,374
Covance*
    
2,750
    
123,393
Coventry Health Care*
    
1,600
    
113,200

_____________
See footnotes on page 29.

16

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Capital Portfolio (continued)
 
   
Shares
  
Value
Health Care Providers and Services (continued)
        
Eclipsys*
    
2,900
  
$
40,817
Omnicare
    
2,700
    
114,561
PacifiCare Health Systems*
    
1,000
    
71,450
Quest Diagnostics
    
2,600
    
138,502
Henry Schein*
    
2,500
    
103,912
Triad Hospitals*
    
1,100
    
60,104
The TriZetto Group*
    
3,700
    
51,671
WellPoint*
    
800
    
55,712
           
1,167,677
Hotels, Restaurants and Leisure 6.7%
            
Applebee’s International
    
3,500
    
92,540
Cheesecake Factory*
    
3,000
    
104,130
CKE Restaurants
    
8,800
    
122,496
Hilton Hotels
    
5,300
    
126,405
Marriott International (Class A)
    
1,700
    
115,974
Outback Steakhouse
    
3,900
    
176,436
Starwood Hotels & Resorts Worldwide
    
1,500
    
87,855
YUM! Brands
    
1,600
    
83,328
           
909,164
Household Durables 2.5%
            
Fortune Brands
    
1,800
    
159,840
Tupperware
    
6,400
    
149,568
Whirlpool
    
500
    
35,055
           
344,463
Internet and Catalog Retail 1.3%
            
Blue Nile*
    
5,400
    
176,148
Internet Software and Services 0.5%
            
VeriSign*
    
2,300
    
66,056
IT Services 2.3%
            
Cognizant Technology Solutions (Class A)*
    
900
    
42,475
Fiserv*
    
2,000
    
85,810
Paychex
    
4,600
    
149,569
Satyam Computer Services (ADR)
    
1,600
    
41,600
           
319,454
Leisure Equipment and Products 0.4%
            
SCP Pool
    
1,500
    
52,717
Metals and Mining 0.4%
            
Nucor
    
1,300
    
59,306
Oil, Gas and Consumable Fuels 3.4%
            
Murphy Oil
    
2,000
    
104,460
Noble Energy
    
3,200
    
242,080
XTO Energy
    
3,633
    
123,486
           
470,026
Personal Products 3.1%
            
Nu Skin Enterprises (Class A)
    
7,400
    
172,420
USANA Health Sciences*
    
5,800
    
245,456
           
417,876


   
Shares
  
Value
Pharmaceuticals 5.9%
        
Allergan
    
2,200
  
$
187,528
Forest Laboratories*
    
2,900
    
112,665
IVAX*
    
3,400
    
73,100
MGI PHARMA*
    
3,200
    
69,616
Sepracor*
    
2,600
    
156,013
Shire Pharmaceuticals Group (ADR)
    
2,600
    
85,189
Taro Pharmaceutical Industries*
    
2,000
    
58,160
Watson Pharmaceuticals*
    
2,300
    
67,988
           
810,259
Semiconductors and
            
Semiconductor Equipment 7.0%
            
Advanced Micro Devices*
    
5,700
    
98,838
Altera*
    
2,600
    
51,467
Analog Devices
    
2,700
    
100,737
Broadcom (Class A)*
    
4,600
    
163,438
Freescale Semiconductor (Class A)*
    
3,700
    
77,737
KLA-Tencor
    
2,200
    
96,107
Lam Research*
    
2,200
    
63,657
Linear Technology
    
3,700
    
135,735
Marvell Technology Group*
    
1,800
    
68,355
National Semiconductor
    
4,500
    
99,135
           
955,206
Software 6.5%
            
Adobe Systems
    
3,500
    
99,995
Autodesk
    
1,800
    
61,857
BEA Systems*
    
5,800
    
50,895
Cogent*
    
6,900
    
196,857
Intuit*
    
1,800
    
81,189
Mercury Interactive*
    
2,800
    
107,296
NAVTEQ*
    
2,700
    
100,386
Verint Systems*
    
1,700
    
54,663
VERITAS Software*
    
5,600
    
136,668
           
889,806
Specialty Retail 9.7%
            
Bed Bath & Beyond*
    
9,000
    
376,065
Chico’s FAS*
    
8,200
    
281,096
Guitar Center*
    
1,800
    
105,075
Michaels Stores
    
4,800
    
198,576
Tractor Supply*
    
5,200
    
255,268
Williams-Sonoma*
    
2,700
    
106,839
           
1,322,919
Wireless Telecommunication Services 1.3%
            
Alamosa Holdings*
    
5,200
    
72,306
Nextel Partners (Class A)*
    
4,400
    
110,726
           
183,032
Total Common Stocks
(Cost $11,941,063)
          
13,500,219
____________
See footnotes on page 29.

17

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Capital Portfolio (continued)

   
Principal
Amount
  
Value
  
Repurchase Agreement 2.7%
          
State Street Corporation 2.65%, dated 6/30/2005, maturing 7/1/2005, in the amount of $374,028, collateralized by: $375,000 US Treasury Notes 4.25%, 8/15/2014, with a fair market value of $389,063
(Cost $374,000)
  
$374,000
  
$
374,000
  
               
Total Investments 101.7%
              
(Cost $12,315,063)
        
$
13,874,219
  
Other Assets Less Liabilities (1.7)%
          
(237,615
)
Net Assets 100.0%
        
$
13,636,604
  


Seligman Cash Management Portfolio

   
Annualized
Yield on
Purchase Date
  
Principal
Amount
  
Value
  
US Government and Government Agency Securities 42.0%
                    
US Government Securities 23.9%
                    
US Treasury Bills:
                    
2.57%, 7/7/2005
    
2.61
%
$
400,000
  
$
399,829
  
2.65%, 7/14/2005
    
2.69
    
200,000
    
199,808
  
2.71%, 7/14/2005
    
2.75
    
2,000,000
    
1,998,045
  
2.78%, 7/21/2005
    
2.82
    
2,000,000
    
1,996,917
  
Total US Government Securities
(Cost $4,594,499)
                
4,594,599
  
US Government Agency Securities 18.1%
                    
Fannie Mae 2.95%, 7/1/2005
    
2.99
    
1,000,000
    
1,000,000
  
Federal Home Loan Bank
                    
3.01%, 7/6/2005
    
3.05
    
1,244,000
    
1,243,480
  
Freddie Mac:
                    
2.95%, 7/1/2005
    
2.99
    
250,000
    
250,000
  
3.32%, 9/27/2005
    
3.37
    
1,000,000
    
991,884
  
Total US Government Agency Securities
                    
(Cost $3,485,364)
                
3,485,364
  
Total US Government and Government Agency Securities
                    
(Cost $8,079,963)
                
8,079,963
  
Fixed Time Deposits 25.2%
                    
Bank of Montreal, Grand Cayman
                    
3.18%, 7/1/2005
    
3.22
    
975,000
    
975,000
  
BNP Paribas, Grand Cayman
                    
3.29%, 7/1/2005
    
3.34
    
965,000
    
965,000
  
                     

   
Annualized
Yield on
Purchase Date
  
Principal
Amount
  
Value
  
Fixed Time Deposits (continued)
              
Citibank, N.A., Nassau
              
3.25%, 7/1/2005
    
3.30
%
$
960,000
  
$
960,000
  
Dexia Banque, Grand Cayman
                    
3.24%, 7/1/2005
    
3.29
    
965,000
    
965,000
  
Rabobank, Grand Cayman
                    
3.15%, 7/1/2005
    
3.19
    
980,000
    
980,000
  
Total Fixed Time Deposits
(Cost $4,845,000)
                
4,845,000
  
Repurchase Agreement 17.7%
                    
State Street Corporation 2.65%, dated 6/30/2005, maturing 7/1/2005,
  in the amount of $3,406,251, collateralized by: $3,505,000 US Treasury Notes 3.50%,
  2/15/2010, with a fair market value of $3,509,381
(Cost $3,406,000)
    
2.69
    
3,406,000
    
3,406,000
  
Commercial Paper 15.6%
                    
AIG Funding 3.20%, 7/12/2005
    
3.24
    
1,000,000
    
999,022
  
American Express Credit
                    
2.93%, 7/5/2005
    
2.97
    
1,000,000
    
999,675
  
General Electric Capital
                    
3.05%, 7/11/2005
    
3.09
    
1,000,000
    
999,153
  
Total Commercial Paper
(Cost $2,997,850)
                
2,997,850
  
Total Investments 100.5%
(Cost $19,328,813)
                
19,328,813
  
Other Assets Less Liabilities (0.5)%
                
(86,890
)
Net Assets 100.0%
              
$
19,241,923
  
____________
See footnotes on page 29.
 
18

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Common Stock Portfolio

   
Shares
  
Value
  
Common Stocks 96.2%
          
Aerospace and Defense 1.5%
          
General Dynamics
    
400
  
$
43,816
  
Honeywell International
    
2,500
    
91,575
  
           
135,391
  
Air Freight and Logistics 0.4%
              
FedEx
    
500
    
40,505
  
Beverages 2.4%
              
Coca-Cola
    
3,000
    
125,250
  
PepsiCo
    
1,900
    
102,467
  
           
227,717
  
Biotechnology 1.7%
              
Amgen*
    
1,200
    
72,546
  
Pharmion*
    
3,700
    
85,859
  
           
158,405
  
Building Products 0.5%
              
Masco
    
1,500
    
47,640
  
Capital Markets 3.4%
              
The Bank of New York
    
1,600
    
46,048
  
Goldman Sachs Group
    
730
    
74,475
  
Merrill Lynch
    
1,400
    
77,014
  
Morgan Stanley
    
2,290
    
120,156
  
           
317,693
  
Chemicals 2.3%
              
Dow Chemical
    
1,800
    
80,154
  
E. I. du Pont de Nemours
    
1,400
    
60,214
  
Praxair
    
1,500
    
69,900
  
           
210,268
  
Commercial Banks 2.4%
              
Bank of America
    
3,140
    
143,215
  
Fifth Third Bancorp
    
1,100
    
45,292
  
Wachovia
    
740
    
36,704
  
           
225,211
  
Commercial Services and Supplies 1.8%
              
Cendant
    
4,100
    
91,717
  
Waste Management
    
2,700
    
76,518
  
           
168,235
  
Communications Equipment 5.0%
              
Cisco Systems*
    
7,870
    
150,278
  
Lucent Technologies*
    
22,200
    
64,602
  
Nokia (ADR)
    
7,300
    
121,472
  
Nortel Networks*
    
23,800
    
62,118
  
QUALCOMM
    
2,200
    
72,633
  
           
471,103
  
Computers and Peripherals 2.7%
              
Dell*
    
980
    
38,656
  
EMC*
    
4,000
    
54,840
  
International Business Machines
    
2,120
    
157,304
  
           
250,800
  


   
Shares
  
Value
  
Consumer Finance 2.0%
              
American Express
    
1,530
  
$
81,442
  
MBNA
    
4,100
    
107,256
  
           
188,698
  
Containers and Packaging 0.9%
              
Smurfit-Stone Container*
    
8,500
    
86,147
  
Diversified Consumer Services 0.5%
              
ServiceMaster
    
3,700
    
49,580
  
Diversified Financial Services 5.3%
              
CIT Group
    
1,300
    
55,861
  
Citigroup
    
5,960
    
275,531
  
JPMorgan Chase
    
4,540
    
160,353
  
           
491,745
  
Diversified Telecommunication Services 3.0%
              
Citizens Communications
    
6,100
    
81,984
  
SBC Communications
    
1,700
    
40,375
  
Sprint
    
3,400
    
85,306
  
Verizon Communications
    
2,100
    
72,555
  
           
280,220
  
Electric Utilities 1.6%
              
Ameren
    
1,500
    
82,950
  
PPL
    
1,100
    
65,318
  
           
148,268
  
Electronic Equipment and Instruments 0.4%
              
Symbol Technologies
    
4,100
    
40,467
  
Energy Equipment and Services 1.7%
              
Diamond Offshore Drilling
    
500
(1)
  
26,715
  
National Oilwell Varco*
    
600
    
28,524
  
Noble
    
500
    
30,755
  
Tidewater
    
1,100
    
41,932
  
Transocean*
    
500
    
26,985
  
           
154,911
  
Energy Traders 0.6%
              
Duke Energy
    
1,900
    
56,487
  
Food and Staples Retailing 3.0%
              
Kroger*
    
4,600
    
87,538
  
Wal-Mart Stores
    
3,910
    
188,462
  
           
276,000
  
Health Care Equipment and Supplies 1.2%
              
Boston Scientific*
    
1,700
    
45,900
  
Medtronic
    
1,200
    
62,148
  
           
108,048
  
Health Care Providers and Services 0.6%
              
WellPoint*
    
800
    
55,712
  
Hotels, Restaurants and Leisure 1.2%
              
Applebee’s International
    
2,100
    
55,524
  
Marriott International (Class A)
    
900
    
61,398
  
           
116,922
  
 
____________
See footnotes on page 29.

19

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Common Stock Portfolio (continued)

   
Shares
  
Value
  
Household Products 1.6%
          
Colgate-Palmolive
    
1,500
  
$
74,865
  
Procter & Gamble
    
1,420
    
74,905
  
           
149,770
  
Industrial Conglomerates 5.3%
              
General Electric
    
9,310
    
322,592
  
Tyco International
    
5,820
    
169,944
  
           
492,536
  
Insurance 2.7%
              
American International Group
    
3,000
    
174,300
  
Prudential Financial
    
1,200
    
78,792
  
           
253,092
  
Internet and Catalog Retail 0.4%
              
eBay*
    
1,120
(1)
  
36,999
  
Internet Software and Services 0.8%
              
Symantec*
    
1,600
    
34,792
  
Yahoo!*
    
1,100
(1)
  
38,109
  
           
72,901
  
Machinery 1.4%
              
Deere
    
830
    
54,357
  
Illinois Tool Works
    
990
    
78,883
  
           
133,240
  
Media 5.5%
              
Clear Channel Communications
    
2,220
    
68,665
  
Comcast (Class A)*
    
3,000
    
92,025
  
News Corp. (Class B)
    
4,600
    
74,428
  
Time Warner
    
7,990
    
133,513
  
Univision Communications (Class A)*
    
2,880
    
79,344
  
Viacom (Class B)
    
2,000
    
64,040
  
           
512,015
  
Metals and Mining 1.2%
              
Alcoa
    
2,600
    
67,938
  
Freeport-McMoRan Copper & Gold (Class B)
    
1,300
    
48,672
  
           
116,610
  
Multi-Line Retail 1.1%
              
Dollar General
    
2,500
    
50,900
  
Federated Department Stores
    
700
    
51,296
  
           
102,196
  
Oil, Gas and Consumable Fuels 6.6%
              
Apache
    
400
(1)
  
25,840
  
BP (ADR)
    
1,100
    
68,618
  
Chevron
    
900
(1)
  
50,328
  
ConocoPhillips
    
800
(1)
  
45,992
  
El Paso
    
2,300
    
26,496
  
Exxon Mobil
    
5,150
(1)
  
295,970
  
Murphy Oil
    
1,000
(1)
  
52,230
  
Pogo Producing
    
500
    
25,960
  
Western Gas Resources
    
800
(1)
  
27,920
  
           
619,354
  


   
Shares or
Shares
Subject to Put 
Value
  
Personal Products 0.5%
          
Gillette
    
900
  
$
45,567
  
Pharmaceuticals 7.6%
              
Andrx*
    
2,100
    
42,620
  
Forest Laboratories*
    
2,100
    
81,585
  
Johnson & Johnson
    
1,680
    
109,200
  
Eli Lilly
    
1,000
(1)
  
55,710
  
Novartis (ADR)
    
1,800
    
85,392
  
Pfizer
    
9,200
    
253,736
  
Wyeth
    
1,870
    
83,215
  
           
711,458
  
Semiconductors and Semiconductor
              
Equipment 2.2%
              
Applied Materials
    
2,000
    
32,350
  
Broadcom (Class A)*
    
1,700
    
60,401
  
Intel
    
4,360
(1)
  
113,469
  
           
206,220
  
Software 5.5%
              
Computer Associates International
    
3,500
    
96,180
  
Microsoft
    
11,370
    
282,260
  
Novell*
    
13,100
    
81,285
  
VERITAS Software*
    
2,300
    
56,132
  
           
515,857
  
Specialty Retail 1.6%
              
The Gap
    
2,600
    
51,350
  
Home Depot
    
1,300
    
50,570
  
Michaels Stores
    
1,160
(1)
  
47,989
  
           
149,909
  
Thrifts and Mortgage Finance 1.9%
              
Fannie Mae
    
2,000
    
116,800
  
Freddie Mac
    
900
    
58,707
  
           
175,507
  
Tobacco 2.3%
              
Altria Group
    
3,370
    
217,904
  
Wireless Telecommunication
              
Services 1.9%
              
American Tower (Class A)*
    
3,000
    
63,060
  
Crown Castle International*
    
5,800
    
117,856
  
           
180,916
  
Total Common Stocks
(Cost $8,636,457)
          
8,998,224
  
Put Options Purchased*
              
Internet Software and Services
              
Yahoo!, expiring July 2005 at $35
    
1,100
    
1,045
  
Specialty Retail
              
Michaels Stores, expiring July 2005 at $40
    
1,100
    
413
  
Total Put Options Purchased
              
(Cost $1,355)
          
1,458
  

____________
See footnotes on page 29.

20

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Common Stock Portfolio (continued)
 
 
Principal
Amount or Shares
Subject to Call
  
Value
  
Repurchase Agreement 3.3%
          
State Street Corporation 2.65%, dated 6/30/2005, maturing 7/1/2005, in the amount of $311,023, collateralized by:
$320,000 US Treasury Notes 3.50%, 2/15/2010, with a fair market value of $325,200
(Cost $311,000)
  
$
311,000
  
$
311,000
  
Total Investments 99.5%
              
(Cost $8,948,812)
          
9,310,682
  
Other Assets Less Liabilities 0.5%
          
44,353
  
Net Assets 100.0%
        
$
9,355,035
  
Call Options Written*
              
Apache, expiring July 2005 at $65
    
400
shs.
$
(500
)
Chevron, expiring July 2005 at $60
    
900
    
(90
)
ConocoPhillips, expiring July 2005 at $57.50
    
800
    
(920
)


   
Shares
Subject to
Call 
Value
  
Call Options Written* (continued)
          
Diamond Offshore Drilling, expiring
              
July 2005 at $55
    
500
  
$
(450
)
eBay, expiring July 2005 at $37.50
    
1,000
    
(100
)
Exxon Mobil, expiring July 2005 at $65
    
1,400
    
(70
)
Exxon Mobil, expiring July 2005 at $70
    
1,400
    
(70
)
Intel, expiring July 2005 at $27.50
    
1,600
    
(160
)
Eli Lilly, expiring October 2005 at $60
    
1,000
    
(1,000
)
Michaels Stores, expiring July 2005 at $45
    
1,100
    
(165
)
Murphy Oil, expiring July 2005 at $55
    
100
    
(40
)
Noble, expiring July 2005 at $60
    
500
    
(1,500
)
Transocean, expiring July 2005 at $55
    
500
    
(550
)
Western Gas Resources, expiring
              
July 2005 at $35
    
300
    
(285
)
Yahoo!, expiring July 2005 at $37.50
    
1,100
    
(110
)
Total Call Options Written
              
(Premiums received $13,984)
        
$
(6,010
)

Seligman Communications and Information Portfolio

   
Shares
  
Value
  
Common Stocks 98.6%
              
Application Software 8.0%
              
BEA Systems*
    
36,400
  
$
319,410
  
Cogent*
    
11,200
    
319,536
  
Compuware*
    
35,500
    
255,067
  
Microsoft
    
142,800
    
3,545,010
  
NAVTEQ*
    
7,900
    
293,722
  
           
4,732,745
  
Commercial Services and Supplies 1.1%
              
Monster Worldwide*
    
21,800
    
625,333
  
Communications Equipment 9.8%
              
Avocent*
    
22,300
    
583,033
  
Cisco Systems*
    
99,700
    
1,903,771
  
Corning*
    
35,100
    
583,362
  
Motorola
    
43,400
    
792,484
  
Nokia (ADR)
    
42,500
    
707,200
  
Plantronics
    
4,600
    
167,256
  
QUALCOMM
    
31,600
    
1,043,274
  
TomTom*
    
1,500
    
32,920
  
           
5,813,300
  
Computers and Peripherals 6.2%
              
Avid Technology*
    
7,300
    
389,200
  
Brocade Communications Systems*
    
44,900
    
173,539
  
EMC*
    
96,700
    
1,325,757
  
Hewlett-Packard
    
12,500
    
293,875
  
International Business Machines
    
7,900
    
586,180
  
Komag*
    
4,400
    
124,740
  
Seagate Technology*
    
43,400
    
761,670
  
           
3,654,961
  

 
   
Shares
  
Value
  
Consumer Software 3.9%
              
Take-Two Interactive Software*
    
53,000
  
$
1,349,115
  
THQ*
    
31,700
    
927,542
  
           
2,276,657
  
Diversified Telecommunication Services 1.5%
              
NeuStar (Class A)*
    
12,100
    
309,760
  
Sprint
    
22,100
    
554,489
  
           
864,249
  
Electronic Equipment and Instruments 3.3%
              
Amphenol (Class A)
    
16,500
    
662,805
  
Ibiden
    
11,400
    
299,107
  
Orbotech*
    
41,600
    
899,808
  
Xyratex*
    
7,300
    
113,406
  
           
1,975,126
  
Health Care Equipment and Supplies 5.7%
              
Cytyc*
    
45,300
    
1,000,677
  
Fisher Scientific International*
    
11,700
    
759,330
  
Gen-Probe*
    
7,900
    
286,335
  
Kinetic Concepts*
    
13,000
    
780,000
  
PerkinElmer
    
28,600
    
540,540
  
           
3,366,882
  
Health Care Providers and Services 1.4%
              
Laboratory Corporation of America Holdings*
    
16,400
    
818,360
  

____________
See footnotes on page 29.

21

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Communications and Information Portfolio (continued)
 
   
Shares
  
Value
  
Internet Software and Services 7.5%
              
Digital River*
    
37,500
  
$
1,190,813
  
Google*
    
2,100
    
617,705
  
McAfee*
    
37,700
    
986,986
  
Symantec*
    
29,100
    
632,780
  
Yahoo!*
    
29,100
    
1,008,169
  
           
4,436,453
  
IT Services 7.5%
              
Amdocs*
    
95,100
    
2,513,493
  
Infosys Technologies
    
21,233
    
1,150,407
  
Ness Technologies*
    
9,900
    
105,435
  
Satyam Computer Services
    
54,450
    
635,031
  
           
4,404,366
  
Media 1.4%
              
Comcast (Class A)*
    
27,200
    
834,360
  
Semiconductors and Semiconductor Equipment 15.0%
              
Advanced Micro Devices*
    
141,700
    
2,457,078
  
Altera*
    
15,400
    
304,843
  
Analog Devices
    
8,800
    
328,328
  
ATI Technologies*
    
23,400
    
277,407
  
Integrated Device Technology*
    
24,900
    
267,550
  
Lam Research*
    
11,700
    
338,540
  
Mattson Technology*
    
30,700
    
218,891
  
MEMC Electronic Materials*
    
281,500
    
4,439,255
  
Monolithic Power Systems*
    
25,500
    
227,205
  
           
8,859,097
  


   
Shares or
Principal
Amount
  
Value
  
Systems Software 20.0%
          
BMC Software*
    
194,900
 shs.
$
3,498,455
  
Check Point Software Technologies*
    
14,000
    
277,690
  
Computer Associates International
    
91,074
    
2,502,714
  
Macrovision*
    
26,600
    
599,697
  
Oracle*
    
134,000
    
1,769,470
  
VERITAS Software*
    
130,300
    
3,179,972
  
           
11,827,998
  
Technical Software 6.3%
              
Cadence Design Systems*
    
75,900
    
1,036,794
  
Synopsys*
    
163,300
    
2,714,862
  
           
3,751,656
  
Total Common Stocks
(Cost $59,504,332)
          
58,241,543
  
Repurchase Agreement 0.6%
              
State Street Corporation 2.65%, dated 6/30/2005, maturing 7/1/2005, in the amount of
  $346,025, collateralized by: $345,000 US Treasury Notes 4.25%, 8/15/2014, with
  a fair market value of $357,938
(Cost $346,000)
  
$
346,000
    
346,000
  
Total Investments 99.2%
              
(Cost $59,850,332)
          
58,587,543
  
Other Assets Less Liabilities 0.8%
          
489,786
  
Net Assets 100.0%
        
$
59,077,329
  

Seligman Global Technology Portfolio
 
   
Shares
  
Value
  
Common Stocks 95.5%
          
Canada 0.5%
              
ATI Technologies* (Semiconductors and Semiconductor Equipment)
    
3,300
  
$
39,122
  
Finland 1.9%
              
Nokia (ADR) (Communications Equipment)
    
9,400
    
156,416
  
France 2.1%
              
Atos Origin* (IT Services)
    
1,513
    
95,650
  
Thomson* (Household Durables)
    
3,188
    
75,863
  
           
171,513
  
India 3.6%
              
Infosys Technologies (IT Services)
    
2,473
    
133,678
  
Satyam Computer Services (IT Services)
    
4,500
    
52,357
  
Satyam Computer Services (ADR) (IT Services)
    
2,700
    
70,200
  
Tata Consultancy Services (IT Services)
    
1,243
    
38,487
  
           
294,722
  


   
Shares
  
Value
  
Israel 1.7%
              
Check Point Software Technologies* (Systems Software)
    
2,000
  
$
39,670
  
Ness Technologies (IT Services)
    
1,200
    
12,780
  
Orbotech* (Electronic Equipment and Instruments)
    
3,900
    
84,357
  
           
136,807
  
Japan 6.8%
              
Advantest (Semiconductors and
              
Semiconductor Equipment)
    
600
    
43,978
  
Asahi Glass (Building Products)
    
6,000
    
62,861
  
Canon (Office Electronics)
    
800
    
41,903
  
Ibiden (Electronic Equipment and Instruments)
    
4,800
    
125,551
  
JSR (Chemicals)
    
3,200
    
67,077
  

____________
See footnotes on page 29.

22


Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Global Technology Portfolio (continued)

   
Shares
  
Value
  
Japan (continued)
              
Nidec (Electronic Equipment and Instruments)
    
400
  
$
42,121
  
Nitto Denko (Chemicals)
    
1,000
    
56,880
  
TDK (Electronic Equipment and Instruments)
    
1,200
    
81,429
  
Tokuyama (Chemicals)
    
6,000
    
42,609
  
           
564,409
  
Netherlands 1.0%
              
ASM International* (Semiconductors and Semiconductor Equipment)
    
2,400
    
38,220
  
TomTom* (Communications Equipment)
    
1,991
    
43,696
  
           
81,916
  
Taiwan 2.3%
              
Asia Optical (Leisure Equipment and Products)
    
6,000
    
41,370
  
Hon Hai Precision Industry (Electronic Equipment and Instruments)
    
15,000
    
77,711
  
Mitac International (Computers and Peripherals)
    
42,000
    
46,145
  
Phoenix Precision Technology (Electronic Equipment and Instruments)
    
23,000
    
23,623
  
           
188,849
  
United Kingdom 0.8%
              
Empire Online* (Internet Software and Services)
    
8,800
    
28,555
  
Xyratex* (Electronic Equipment and Instruments)
    
2,800
    
43,498
  
           
72,053
  
United States 74.8%
              
Advanced Micro Devices* (Semiconductors and Semiconductor Equipment)
    
14,900
    
258,366
  
Agere Systems* (Semiconductors and Semiconductor Equipment)
    
3,250
    
39,000
  
Altera* (Semiconductors and Semiconductor Equipment)
    
2,300
    
45,528
  
Amdocs* (IT Services)
    
11,600
    
306,588
  
Amphenol (Class A) (Electronic Equipment and Instruments)
    
2,400
    
96,408
  
Analog Devices (Semiconductors and Semiconductor Equipment)
    
1,900
    
70,889
  
Avid Technology* (Computers and Peripherals)
    
2,800
    
149,282
  
Avocent* (Communications Equipment)
    
2,600
    
67,977
  
BMC Software* (Systems Software)
    
20,000
    
359,000
  
Brocade Communications Systems* (Computers and Peripherals)
    
3,900
    
15,074
  
Cadence Design Systems* (Technical Software)
    
6,000
    
81,960
  
Cisco Systems* (Communications Equipment)
    
12,200
    
232,959
  
Computer Associates International (Systems Software)
    
9,689
    
266,254
  
Corning* (Communications Equipment)
    
5,400
    
89,748
  
Digital River* (Internet Software and Services)
    
3,100
    
98,440
  
EMC* (Computers and Peripherals)
    
16,300
    
223,473
  
 

   
Shares
  
Value
  
United States (continued)
              
Epicor Software* (Application Software)
    
7,000
  
$
92,225
  
Fisher Scientific International* (Health Care Equipment and Supplies)
    
1,500
    
97,350
  
Garmin (Household Durables)
    
2,000
    
85,540
  
Google* (Internet Software and Services)
    
100
    
29,414
  
Hutchinson Technology* (Computers and Peripherals)
    
1,300
    
50,057
  
Hyperion Solutions* (Application Software)
    
2,100
    
84,420
  
Integrated Device Technology* (Semiconductors and Semiconductor Equipment)
    
3,500
    
37,607
  
International Business Machines (Computers and Peripherals)
    
600
    
44,520
  
Kinetic Concepts* (Health Care Equipment and Supplies)
    
1,200
    
72,000
  
Laboratory Corporation of America Holdings* (Health Care Providers and Services)
    
2,600
    
129,740
  
Lam Research* (Semiconductors and Semiconductor Equipment)
    
1,700
    
49,190
  
Macrovision* (Systems Software)
    
3,900
    
87,925
  
McAfee* (Internet Software and Services)
    
4,900
    
128,282
  
MEMC Electronic Materials* (Semiconductors and Semiconductor Equipment)
    
26,900
    
424,213
  
Microsoft (Application Software)
    
17,500
    
434,438
  
Micrus Endovascular* (Health Care Equipment and Supplies)
    
900
    
9,850
  
Monster Worldwide* (Commercial Services and Supplies)
    
1,500
    
43,028
  
Motorola (Communications Equipment)
    
5,500
    
100,430
  
NeuStar (Class A)* (Diversified Telecommunication Services)
    
500
    
12,800
  
Oracle* (Systems Software)
    
20,100
    
265,421
  
Plantronics (Communications Equipment)
    
700
    
25,452
  
QUALCOMM (Communications Equipment)
    
4,500
    
148,568
  
Seagate Technology (Computers and Peripherals)
    
6,200
    
108,810
  
Sprint (Diversified Telecommunication Services)
    
4,900
    
122,941
  
Symantec* (Internet Software and Services)
    
4,000
    
86,980
  
Synopsys* (Technical Software)
    
12,700
    
211,138
  
Take-Two Interactive Software* (Consumer Software)
    
7,850
    
199,822
  
THQ* (Consumer Software)
    
4,100
    
119,966
  
VERITAS Software* (Systems Software)
    
13,500
    
329,467
  
Yahoo!* (Internet Software and Services)
    
3,500
    
121,257
  
           
6,153,797
  
Total Investments 95.5%
(Cost $7,583,674)
          
7,859,604
  
Other Assets Less Liabilities 4.5%
          
371,554
  
Net Assets 100.0%
        
$
8,231,158
  

____________
See footnotes on page 29.

23

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman International Growth Portfolio
 
   
Shares
  
Value
  
Common Stocks 97.6%
          
Australia 1.7%
              
Macquarie Airports (Transportation Infrastructure)
    
21,489
  
$
58,434
  
Belgium 2.0%
              
SES Global (FDR) (Media)
    
4,758
    
70,424
  
Brazil 0.5%
              
Companhia Vale do Rio Doce “CVRD” (ADR) (Metals and Mining)
    
600
    
17,568
  
Canada 9.7%
              
Canadian National Railway (Road and Rail)
    
602
    
34,714
  
Canadian Pacific Railway (Road and Rail)
    
1,100
    
38,043
  
EnCana (Oil, Gas and Consumable Fuels)
    
900
    
35,487
  
Petro-Canada (Oil, Gas and Consumable Fuels)
    
1,551
    
100,916
  
Research In Motion* (Communications Equipment)
    
600
    
44,259
  
RONA* (Specialty Retail)
    
1,200
    
24,163
  
SNC-Lavalin Group (Construction and Engineering)
    
527
    
29,495
  
Talisman Energy (Oil, Gas and Consumable Fuels)
    
700
    
26,214
  
           
333,291
  
Finland 2.3%
              
Nokia (ADR) (Communications Equipment)
    
4,700
    
78,208
  
France 15.6%
              
AXA (Insurance)
    
1,855
    
46,121
  
Carrefour (Food and Staples Retailing)
    
715
    
34,494
  
Dassault Systemes* (Software)
    
1,143
    
55,174
  
Essilor International (Health Care Equipment and Supplies)
    
818
    
55,708
  
European Aeronautic Defence and Space (Aerospace and Defense)
    
1,958
    
62,116
  
France Telecom (Diversified Telecommunication Services)
    
876
    
25,443
  
Groupe Danone (Food Products)
    
112
    
9,818
  
LVMH Moet Hennessy Louis Vuitton (Textiles, Apparel and Luxury Goods)
    
222
    
17,089
  
Pernod Ricard (Beverages)
    
417
    
66,507
  
Publicis Groupe (Media)
    
565
    
16,619
  
Unibail (Real Estate)
    
484
    
61,971
  
Vivendi Universal (Media)
    
2,722
    
85,221
  
           
536,281
  
Germany 7.0%
              
Adidas-Salomon (Textiles, Apparel and Luxury Goods)
    
337
    
56,204
  
Bayerische Hypo-und Vereinsbank* (Commercial Banks)
    
1,952
    
50,755
  
Merck KGaA (Pharmaceuticals)
    
789
    
62,671
  
SAP (Software)
    
404
    
70,157
  
           
239,787
  


   
Shares
  
Value
  
Greece 0.7%
              
EFG Eurobank Ergasias (Commercial Banks)
    
780
  
$
23,891
  
Hong Kong 2.1%
              
Esprit Holdings (Specialty Retail)
    
10,000
    
71,957
  
Ireland 1.0%
              
Ryanair Holdings* (Airlines)
    
800
    
35,892
  
Italy 2.2%
              
Eni (Oil, Gas and Consumable Fuels)
    
3,016
    
77,413
  
Japan 8.0%
              
Eisai (Pharmaceuticals)
    
1,000
    
33,493
  
Japan Tobacco (Tobacco)
    
6
    
79,964
  
Keyence (Electronic Equipment and Instruments)
    
200
    
44,524
  
Matsushita Electric Industrial (Household Durables)
    
1,000
    
15,173
  
Mitsubishi Tokyo Financial Group (Commercial Banks)
    
7
    
59,089
  
Nippon Electric Gas (Electronic Equipment and Instruments)
    
2,000
    
29,963
  
Orix (Consumer Finance)
    
100
    
14,953
  
           
277,159
  
Mexico 2.2%
              
Grupo Televisa (ADR) (Media)
    
1,200
    
74,508
  
Netherlands 4.8%
              
Ahold* (Food and Staples Retailing)
    
13,778
    
112,865
  
Koninklijke Ahold* (Food Products)
    
844
    
33,651
  
TomTom* (Communications Equipment)
    
889
    
19,511
  
           
166,027
  
South Korea 2.2%
              
L.G. Philips LCD* (Electronic Equipment and Instruments)
    
1,650
    
76,159
  
Spain 1.6%
              
Banco Bilbao Vizcaya Argentaria (Commercial Banks)
    
3,576
    
55,008
  
Sweden 1.7%
              
Telefonaktiebolaget LM Ericsson* (Communications Equipment)
    
18,000
    
57,559
  
Switzerland 11.0%
              
Credit Suisse Group (Commercial Banks)
    
1,214
    
47,584
  
Kuehne & Nagel International* (Marine)
    
174
    
36,809
  
Roche Holding (Pharmaceuticals)
    
825
    
103,943
  
Swatch Group (Textiles, Apparel and Luxury Goods)
    
2,060
    
58,697
  
Swatch Group (Class B) (Textiles, Apparel and Luxury Goods)
    
128
    
17,918
  
UBS* (Capital Markets)
    
820
    
63,756
  
Zurich Financial Services (Insurance)
    
302
    
51,818
  
           
380,525
  

____________
See footnotes on page 29.

24

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman International Growth Portfolio (continued)

 
    
Shares 
    
Value
  
Taiwan 7.7%
              
AU Optronics (ADR) (Electronic Equipment and Instruments)
    
7,000
  
$
118,580
  
Chi Mei Optoelectronics (Electronic Equipment and Instruments)
    
62,000
    
96,330
  
Taiwan Semiconductor Manufacturing (ADR) (Semiconductors and Semiconductor Equipment)
    
5,365
    
48,929
  
           
263,839
  
United Kingdom 13.6%
              
AstraZeneca (Pharmaceuticals)
    
1,033
    
42,712
  
British Airways* (Airlines)
    
2,121
    
9,977
  
Capita Group (Commercial Services and Supplies)
    
10,966
    
72,079
  
The Carphone Warehouse Group (Specialty Retail)
    
18,045
    
59,169
  


   
Shares
  
Value
  
United Kingdom (continued)
          
EMI Group (Media)
    
20,824
  
$
94,386
  
Imperial Tobacco Group (Tobacco)
    
1,280
    
34,396
  
Kesa Electricals (Specialty Retail)
    
2,101
    
10,482
  
Reckitt Benckiser (Household Products)
    
1,059
    
31,134
  
Standard Chartered (Commercial Banks)
    
4,584
    
83,600
  
Vodafone Group (Wireless Telecommunication Services)
    
12,913
    
31,396
  
           
469,331
  
Total Investments 97.6%
(Cost $3,134,134)
          
3,363,261
  
Other Assets Less Liabilities 2.4%
          
81,311
  
Net Assets 100.0%
        
$
3,444,572
  

Seligman Investment Grade Fixed Income Portfolio
 
   
Principal
Amount
  
Value
  
US Government and Government Agency Securities 62.6%
              
US Government Securities 18.6%
              
US Treasury Bonds 5.375%, 2/15/2031
  
$
155,000
  
$
182,949
  
US Treasury Notes:
              
4.25%, 11/15/2014
    
320,000
    
327,613
  
4.125%, 5/15/2015
    
150,000
    
152,238
  
Total US Government Securities
(Cost $647,576)
          
662,800
  
Government Agency Securitiesø24.6%
              
Fannie Mae:
              
3.8%, 1/18/2008
    
120,000
    
119,614
  
4.125%, 6/16/2008
    
195,000
    
194,926
  
5%, 4/6/2010
    
245,000
    
247,185
  
5%, 3/2/2015
    
130,000
    
131,189
  
Freddie Mac:
              
4.125%, 11/18/2009
    
25,000
    
25,011
  
4.375%, 3/1/2010
    
100,000
    
100,134
  
5.2%, 3/5/2019
    
60,000
    
60,966
  
Total Government Agency Securities
(Cost $872,970)
          
879,025
  
Government Agency Mortgage-Backed Securities††ø19.4%
              
Fannie Mae:
              
7%, 1/1/2008
    
12,538
    
12,996
  
7%, 2/1/2012
    
5,468
    
5,667
  
8.5%, 9/1/2015
    
5,546
    
5,979
  
6.5%, 5/1/2017
    
21,084
    
21,965
  
5.5%, 2/1/2018
    
42,941
    
44,121
  



   
Principal
Amount
  
Value
  
Government Agency Mortgage-Backed Securities (continued)
          
Fannie Mae: (continued)
              
7%, 1/1/2032
  
$
21,674
  
$
22,869
  
4.5%, 1/25/2032
    
185,000
    
182,587
  
7%, 5/1/2032
    
49,877
    
52,626
  
6%, 11/1/2034
    
74,026
    
75,943
  
Freddie Mac Gold:
              
4.5%, 11/1/2007
    
88,617
    
89,080
  
6%, 11/1/2010
    
6,181
    
6,430
  
5.5%, 6/1/2018
    
32,473
    
33,358
  
8%, 12/1/2023
    
4,469
    
4,824
  
6%, 12/1/2032
    
112,597
    
115,604
  
6.5%, 2/1/2033
    
17,174
    
17,822
  
Total Government Agency Mortgage-Backed Securities
(Cost $690,162)
          
691,871
  
Total US Government and Government Agency Securities
(Cost $2,210,708)
          
2,233,696
  
Corporate Bonds 34.0%
              
Aerospace and Defense 0.9%
              
International Lease Finance
              
5%, 4/15/2010
    
20,000
    
20,416
  
United Technologies 4.875%, 5/1/2015
    
10,000
    
10,249
  
           
30,665
  
Beverages 2.0%
              
Anheuser-Busch 7%, 12/1/2025
    
50,000
    
52,240
  
PepsiAmericas 4.875%, 1/15/2015
    
20,000
    
20,410
  
           
72,650
  

____________
See footnotes on page 29.

25


Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Investment Grade Fixed Income Portfolio (continued)

    
Principal
Amount
  
Value
  
Corporate Bonds (continued)
          
Biotechnology 0.4%
              
Amgen 4%, 11/18/2009
  
$
15,000
  
$
14,901
  
Capital Markets 2.5%
              
Goldman Sachs Capital 6.345%, 2/15/2034
    
20,000
    
21,745
  
Lehman Brothers Holdings:
              
3.48%, 11/10/2009
    
25,000
    
25,093
  
4.8%, 3/13/2014
    
15,000
    
15,184
  
Morgan Stanley 6.6%, 4/1/2012
    
25,000
    
27,833
  
           
89,855
  
Commercial Banks 2.3%
              
Fifth Third Bancorp 4.5%, 6/1/2018
    
15,000
    
14,404
  
Key Bank 5.7%, 8/15/2012
    
25,000
    
26,856
  
Wells Fargo 3.419%, 3/10/2008
    
40,000
    
40,012
  
           
81,272
  
Communications Equipment 0.6%
              
Motorola 6.5%, 9/1/2025
    
20,000
    
22,120
  
Construction and Engineering 2.0%
              
Centex 5.7%, 5/15/2014
    
35,000
    
36,391
  
Pulte Homes 6%, 2/15/2035
    
35,000
    
34,169
  
           
70,560
  
Consumer Finance 3.2%
              
General Electric Capital:
              
4.25%, 6/15/2012
    
40,000
    
39,544
  
2.75%, 9/15/2014
    
55,000
    
55,438
  
SLM 4.43%, 2/1/2010
    
20,000
    
19,612
  
           
114,594
  
Diversified Financial Services 4.4%
              
Capital One Financial 5.5%, 6/1/2015
    
35,000
    
35,874
  
CIT Group 5%, 2/13/2014
    
40,000
    
40,473
  
Citigroup:
              
2.59%, 6/9/2009
    
25,000
    
25,051
  
5.875%, 2/22/2033
    
5,000
    
5,472
  
First Data 4.95%, 6/15/2015
    
15,000
    
15,233
  
Residential Capital 6.375%, 6/30/2010†
    
35,000
    
35,204
  
           
157,307
  
Diversified Telecommunication Services 1.3%
              
BellSouth:
              
3.393%, 11/15/2007
    
15,000
    
15,026
  
6%, 11/15/2034
    
5,000
    
5,336
  
SBC Communications 5.1%, 9/15/2014
    
25,000
    
25,608
  
           
45,970
  
Energy Traders 0.7%
              
Duke Energy 5.3%, 10/1/2015
    
25,000
    
26,291
  



    
Principal
Amount
  
Value
  
Food and Staples Retailing 1.3%
              
Safeway 5.625%, 8/15/2014
  
$
45,000
  
$
46,785
  
Health Care Providers and Services 1.2%
              
UnitedHealth Group 3.3%, 1/30/2008
    
45,000
    
43,984
  
Media 1.9%
              
Comcast 6.5%, 1/15/2015
    
35,000
    
39,083
  
Cox Communications 4.625%, 1/15/2010
    
15,000
    
14,976
  
Time Warner 7.625%, 4/15/2031
    
10,000
    
12,528
  
           
66,587
  
Multi-Utilities and Unregulated Power 5.2%
              
Alabama Power 3.484%, 8/25/2009
    
25,000
    
25,044
  
Carolina Power & Light 5.95%, 3/1/2009
    
40,000
    
42,142
  
Dominion Resources 6.75%, 12/15/2032
    
30,000
    
34,601
  
Plains All American Pipeline 5.25%, 6/15/2015†
    
30,000
    
30,217
  
Public Service Electric and Gas 5%, 8/15/2014
    
40,000
    
41,121
  
Southern California Edison 5%, 1/15/2016
    
10,000
    
10,256
  
           
183,381
  
Oil, Gas and Consumable Fuels 1.6%
              
Murphy Oil 6.375%, 5/1/2012
    
50,000
    
55,212
  
Thrifts and Mortgage Finance 0.6%
              
Countrywide Home Loans 3.518%, 11/16/2007
    
20,000
    
20,030
  
Wireless Telecommunication Services 1.9%
              
Verizon Global Funding 7.75%, 12/1/2030
    
10,000
    
12,953
  
Verizon Wireless Capital 5.375%, 12/15/2006
    
55,000
    
56,071
  
           
69,024
  
Total Corporate Bonds
(Cost $1,201,482)
          
1,211,188
  
Asset-Backed Securities †† 2.9%
(Cost $99,953)
              
Electric Utilities 2.9%
              
Peco Energy Transition Trust
              
6.05%, 3/1/2009
    
100,000
    
102,111
  
Total Investments 99.5%
(Cost $3,512,143)
          
3,546,995
  
Other Assets Less Liabilities 0.5%
          
17,739
  
Net Assets 100.0%
        
$
3,564,734
  

____________
See footnotes on page 29.

26


Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Large-Cap Value Portfolio

   
Shares
  
Value
  
Common Stocks 96.7%
              
Aerospace and Defense 6.1%
              
Honeywell International
    
5,000
  
$
183,150
  
United Technologies
    
3,000
    
154,050
  
           
337,200
  
Capital Markets 2.6%
              
The Bank of New York
    
5,000
    
143,900
  
Chemicals 7.0%
              
Dow Chemical
    
3,800
    
169,214
  
Praxair
    
3,300
    
153,780
  
Rohm and Haas
    
1,300
    
60,242
  
           
383,236
  
Commercial Banks 6.5%
              
Bank of America
    
4,000
    
182,440
  
U.S. Bancorp
    
6,000
    
175,200
  
           
357,640
  
Communications Equipment 2.7%
              
Cisco Systems*
    
7,700
    
147,032
  
Computers and Peripherals 2.4%
              
International Business Machines
    
1,800
    
133,560
  
Diversified Financial Services 2.9%
              
JPMorgan Chase
    
4,500
    
158,940
  
Energy Traders 4.2%
              
AES*
    
14,000
    
229,320
  
Food and Staples Retailing 2.8%
              
Costco Wholesale
    
3,500
    
156,572
  
Health Care Equipment and Supplies 6.0%
              
Baxter International
    
4,700
    
174,370
  
Medtronic
    
3,000
    
155,370
  
           
329,740
  
Health Care Providers and Services 3.1%
              
HCA
    
3,000
    
170,010
  
Industrial Conglomerates 2.5%
              
General Electric
    
4,000
    
138,600
  
Insurance 11.9%
              
Allstate
    
2,700
    
161,325
  
Prudential Financial
    
2,500
    
164,150
  
The St. Paul Travelers Companies
    
4,200
    
166,026
  
UnumProvident
    
9,000
    
164,880
  
           
656,381
  
Machinery 3.1%
              
Caterpillar
    
1,800
    
171,558
  
Multi-Line Retail 2.9%
              
J.C. Penney
    
3,000
    
157,740
  



   
Shares or
Principal
Amount
  
Value
  
Oil, Gas and Consumable Fuels 6.6%
              
Chevron
    
3,000
   shs.
$
167,760
  
Valero Energy
    
2,500
    
197,775
  
           
365,535
  
Paper and Forest Products 2.9%
              
Georgia-Pacific
    
5,000
    
159,000
  
Personal Products 2.8%
              
Avon Products
    
4,000
    
151,400
  
Pharmaceuticals 2.9%
              
Wyeth
    
3,600
    
160,200
  
Road and Rail 6.2%
              
CSX
    
4,000
    
170,640
  
Union Pacific
    
2,600
    
168,480
  
           
339,120
  
Software 1.0%
              
Amdocs*
    
2,000
    
52,860
  
Specialty Retail 1.8%
              
The Gap
    
5,000
    
98,750
  
Thrifts and Mortgage Finance 2.6%
              
Washington Mutual
    
3,500
    
142,415
  
Tobacco 3.2%
              
Altria Group
    
2,700
    
174,582
  
Total Common Stocks
              
(Cost $4,307,337)
  
5,315,291
  
Repurchase Agreement 4.4%
              
State Street Corporation 2.65%, dated 6/30/2005, maturing
  7/1/2005, in the amount of $243,018, collateralized by: $250,000 US Treasury Notes 4.25%, 8/15/2014,
  with a fair market value of $254,063
(Cost $243,000)
  
$
243,000
    
243,000
  
Total Investments 101.1%
(Cost $4,550,337)
          
5,558,291
  
Other Assets Less Liabilities (1.1)%
          
(62,939
)
Net Assets 100.0%
        
$
5,495,352
  

____________
See footnotes on page 29.

27

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Smaller-Cap Value Portfolio

   
Shares
  
Value
  
Common Stocks 99.2%
          
Aerospace and Defense 2.1%
              
Cubic
    
300,000
  
$
5,322,000
  
Airlines 2.4%
              
Continental Airlines*
    
470,000
    
6,241,600
  
Beverages 1.8%
              
Constellation Brands (Class A)*
    
160,000
    
4,720,000
  
Biotechnology 3.4%
              
CV Therapeutics*
    
77,400
    
1,733,373
  
Protein Design Labs*
    
350,000
    
7,075,250
  
           
8,808,623
  
Building Products 2.3%
              
York International
    
160,000
    
6,080,000
  
Chemicals 12.1%
              
Cabot
    
160,000
    
5,280,000
  
Crompton
    
375,000
    
5,306,250
  
Hercules*
    
450,000
    
6,367,500
  
Lyondell Chemical
    
150,000
    
3,963,000
  
Minerals Technologies
    
95,000
    
5,852,000
  
NOVA Chemicals
    
150,000
    
4,584,000
  
           
31,352,750
  
Commercial Services and Supplies 7.5%
              
Brink’s
    
180,000
    
6,480,000
  
Korn/Ferry International*
    
375,000
    
6,656,250
  
Waste Connections*
    
170,000
    
6,339,300
  
           
19,475,550
  
Communications Equipment 3.6%
              
Extreme Networks*
    
847,700
    
3,454,377
  
Plantronics
    
160,000
    
5,817,600
  
           
9,271,977
  
Computers and Peripherals 1.7%
              
Brocade Communications Systems*
    
1,120,000
    
4,328,800
  
Containers and Packaging 0.8%
              
Smurfit-Stone Container*
    
200,000
    
2,027,000
  
Diversified Consumer Services 2.3%
              
Sotheby’s Holdings (Class A)*
    
440,000
    
6,028,000
  
Electrical Equipment 1.6%
              
EnerSys*
    
306,100
    
4,172,143
  
Electronic Equipment and Instruments 2.7%
              
Trimble Navigation*
    
180,000
    
7,015,500
  
Energy Equipment and Services 4.4%
              
Hanover Compressor*
    
450,000
    
5,179,500
  
Universal Compression Holdings*
    
170,000
    
6,160,800
  
           
11,340,300
  

 
   
Shares
  
Value
  
Food Products 2.2%
              
Bunge
    
90,000
  
$
5,706,000
  
Health Care Providers and Services 4.4%
              
Apria Healthcare Group*
    
180,000
    
6,235,200
  
HealthSouth*
    
900,000
    
5,071,500
  
           
11,306,700
  
Hotels, Restaurants and Leisure 4.5%
              
Ruby Tuesday
    
250,000
    
6,475,000
  
WMS Industries*
    
150,000
    
5,062,500
  
           
11,537,500
  
Household Durables 1.7%
              
Harman International Industries
    
55,000
    
4,474,800
  
Insurance 7.9%
              
Allmerica Financial*
    
170,000
    
6,305,300
  
W.R. Berkley
    
135,000
    
4,816,800
  
Infinity Property & Casualty
    
127,000
    
4,426,585
  
Max Re Capital
    
46,800
    
1,072,422
  
Montpelier Re Holdings
    
110,000
    
3,803,800
  
           
20,424,907
  
IT Services 1.4%
              
Carreker*
    
650,000
    
3,575,000
  
Machinery 6.7%
              
Mueller Industries
    
200,000
    
5,420,000
  
Stewart & Stevenson Services
    
330,000
    
7,477,800
  
Terex*
    
112,000
    
4,412,800
  
           
17,310,600
  
Media 1.8%
              
Cadmus Communications
    
257,450
    
4,627,664
  
Multi-Line Retail 2.0%
              
Fred’s
    
320,000
    
5,307,200
  
Oil, Gas and Consumable Fuels 2.7%
              
Peabody Energy
    
135,000
    
7,025,400
  
Paper and Forest Products 0.7%
              
Bowater
    
60,000
    
1,942,200
  
Pharmaceuticals 2.3%
              
Andrx*
    
290,000
    
5,885,550
  
Road and Rail 1.9%
              
J.B. Hunt Transport Services
    
260,000
    
5,008,900
  
Semiconductors and Semiconductor
              
Equipment 4.2%
              
Credence Systems*
    
700,000
    
6,331,500
  
Skyworks Solutions*
    
626,000
    
4,616,750
  
           
10,948,250
  

____________
See footnotes on page 29.

28

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2005

Seligman Smaller-Cap Value Portfolio (continued)

    
Shares or
Principal
Amount
  
Value
  
Specialty Retail 6.1%
              
Blockbuster (Class A)
    
600,000
  shs.
$
5,472,000
  
Finish Line (Class A)
    
300,000
    
5,673,000
  
Pacific Sunwear of California*
    
205,000
    
4,713,975
  
           
15,858,975
  
Total Common Stocks
(Cost $215,019,955)
          
257,123,889
  
Repurchase Agreement 0.4%
              
State Street Corporation 2.65%, dated 6/30/2005, maturing
  7/1/2005, in the amount of $901,066, collateralized by: $930,000 US Treasury Notes 3.50%, 2/15/2010,
  with a fair market value of $931,163
(Cost $901,000)
  
$
901,000
    
901,000
  
Total Investments 99.6%
(Cost $215,920,955)
          
258,024,889
  
Other Assets Less Liabilities 0.4%
          
1,097,429
  
Net Assets 100.0%
        
$
259,122,318
  

____________
*
Non-income producing security.
†
The security may be offered and sold only to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933.
††
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.
ø
Securities issued by these agencies are neither guaranteed nor insured by the US Government.
ADR -
American Depositary Receipts.
FDR -
Fiduciary Depositary Receipts.
(1)
All or part of the security is held as collateral for written options.
See Notes to Financial Statements.

29


Seligman Portfolios, Inc.
Statements of Assets and Liabilities (unaudited)
June 30, 2005
 
   
Seligman
Capital
Portfolio
  
Seligman
Cash
Management
Portfolio
  
Seligman
Common
Stock
Portfolio
  
Seligman
Communications
and
Information
Portfolio
  
Seligman
Global
Technology
Portfolio
  
Assets:
Investments, at value* (see portfolios of investments):
                      
Long-term holdings
  
$
13,500,219
  
$
—
  
$
8,998,224
  
$
58,241,543
  
$
7,859,604
  
Put options purchased
    
—
    
—
    
1,458
    
—
    
—
  
Repurchase agreements
    
374,000
    
3,406,000
    
311,000
    
346,000
    
—
  
Other short-term holdings
    
—
    
15,922,813
    
—
    
—
    
—
  
Total Investments*
    
13,874,219
    
19,328,813
    
9,310,682
    
58,587,543
    
7,859,604
  
Cash denominated in US dollars
    
1,230
    
909
    
5,060
    
587
    
91,790
  
Cash denominated in foreign currencies**
    
—
    
—
    
—
    
122,031
    
285,369
  
Receivable for securities sold
    
16,862
    
—
    
8,437
    
1,454,595
    
215,576
  
Dividends and interest receivable
    
6,596
    
1,289
    
10,162
    
2,559
    
1,727
  
Receivable for Capital Stock sold
    
58
    
—
    
58,391
    
17,212
    
577
  
Receivable from the Manager (Note 4)
    
—
    
—
    
—
    
—
    
9,037
  
Unrealized appreciation on forward currency contracts
    
—
    
—
    
—
    
—
    
679
  
Other
    
2,770
    
7,277
    
2,854
    
2,842
    
6,053
  
Total Assets
    
13,901,735
    
19,338,288
    
9,395,586
    
60,187,369
    
8,470,412
  
Liabilities:
Payable for securities purchased
    
212,978
    
—
    
8,871
    
977,905
    
171,237
  
Management fee payable
    
4,515
    
8,645
    
3,143
    
37,193
    
6,971
  
Payable for Capital Stock redeemed
    
3,187
    
70,064
    
371
    
8,583
    
13,051
  
Distribution and service fees payable
    
3,173
    
—
    
—
    
6,896
    
697
  
Options written, at value† (see portfolios of investments)
    
—
    
—
    
6,010
    
—
    
—
  
Unrealized depreciation on forward currency contracts
    
—
    
—
    
—
    
362
    
303
  
Accrued expenses and other
    
41,278
    
17,656
    
22,156
    
79,101
    
46,995
  
Total Liabilities
    
265,131
    
96,365
    
40,551
    
1,110,040
    
239,254
  
Net Assets
  
$
13,636,604
  
$
19,241,923
  
$
9,355,035
  
$
59,077,329
  
$
8,231,158
  
Composition of Net Assets:
Capital Stock, $0.001 at par
  
$
1,086
  
$
19,244
  
$
877
  
$
4,751
  
$
689
  
Additional paid-in capital
    
23,244,016
    
19,222,679
    
11,661,877
    
98,775,472
    
21,295,498
  
Undistributed/accumulated net investment income (loss)
    
(53,323
)
  
—
    
188,625
    
(290,022
)
  
(73,895
)
Accumulated net realized loss
    
(11,114,331
)
  
—
    
(2,866,188
)
  
(38,148,406
)
  
(13,266,479
)
Net unrealized appreciation (depreciation) of investments
and options written
    
1,559,156
    
—
    
369,844
    
(1,264,466
)
  
302,735
  
Net unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
    
—
    
—
    
—
    
—
    
(27,390
)
Net Assets
  
$
13,636,604
  
$
19,241,923
  
$
9,355,035
  
$
59,077,329
  
$
8,231,158
  
Class 1
  
$
8,470,220
  
$
19,241,923
  
$
9,355,035
  
$
47,993,994
  
$
6,466,812
  
Class 2
  
$
5,166,384
              
$
11,083,335
  
$
1,764,346
  
Shares of Capital Stock Outstanding:
                                
Class 1
    
671,505
    
19,244,297
    
877,333
    
3,849,538
    
540,545
  
Class 2
    
414,110
                
901,475
    
148,577
  
                                 
Net Asset Value per Share:
Class 1
  
$
12.61
  
$
1.00
  
$
10.66
  
$
12.47
  
$
11.96
  
Class 2
  
$
12.48
              
$
12.29
  
$
11.87
  
____________
                                
*   Cost of investments are as follows:
  
$
12,315,063
  
$
19,328,813
  
$
8,948,812
  
$
59,850,332
  
$
7,583,674
  
** Cost of foreign currencies as follows:
    
—
    
—
    
—
  
$
121,978
  
$
285,680
  
†    Premiums from options written as follows:
    
—
    
—
  
$
13,984
    
—
    
—
  
See Notes to Financial Statements.

30

Seligman Portfolios, Inc.
Statements of Assets and Liabilities (unaudited)
June 30, 2005
 
   
Seligman
International
Growth
Portfolio
  
Seligman
Investment Grade
Fixed Income
Portfolio
  
Seligman
Large-Cap
Value
Portfolio
  
Seligman
Smaller-Cap
Value
Portfolio
  
Assets:
Investments, at value* (see portfolios of investments):
                          
Long-term holdings
  
$
3,363,261
  
$
3,546,995
  
$
5,315,291
  
$
257,123,889
  
Repurchase agreements
    
—
    
—
    
243,000
    
901,000
  
Total investments*
    
3,363,261
    
3,546,995
    
5,558,291
    
258,024,889
  
Cash denominated in US dollars
    
63,127
    
—
    
462
    
32,470
  
Cash denominated in foreign currencies**
    
7,771
    
—
    
—
    
—
  
Receivable for securities sold
    
45,151
    
175,337
    
—
    
1,030,324
  
Dividends and interest receivable
    
8,966
    
33,802
    
8,196
    
58,417
  
Receivable for Capital Stock sold
    
819
    
2,310
    
10
    
4,449,525
  
Receivable from the Manager (Note 4)
    
25,723
    
4,523
    
—
    
—
  
Unrealized appreciation on forward currency contracts
    
98
    
—
    
—
    
—
  
Other
    
2,820
    
2,682
    
1,498
    
1,734
  
Total Assets
    
3,517,736
    
3,765,649
    
5,568,457
    
263,597,359
  
Liabilities:
Payable for securities purchased
    
29,069
    
77,356
    
53,900
    
3,823,836
  
Bank overdraft
    
—
    
102,998
    
—
    
—
  
Management fee payable
    
2,837
    
1,172
    
3,504
    
209,448
  
Payable for Capital Stock redeemed
    
9
    
43
    
3
    
264,672
  
Distribution and service fees payable
    
—
    
—
    
—
    
15,431
  
Unrealized depreciation on forward currency contracts
    
16
    
—
    
—
    
—
  
Accrued expenses and other
    
41,233
    
19,346
    
15,698
    
161,654
  
Total Liabilities
    
73,164
    
200,915
    
73,105
    
4,475,041
  
Net Assets
  
$
3,444,572
  
$
3,564,734
  
$
5,495,352
  
$
259,122,318
  
Composition of Net Assets:
Capital Stock, $0.001 at par
  
$
337
  
$
378
  
$
503
  
$
14,519
  
Additional paid-in capital
    
5,522,638
    
3,334,731
    
5,591,288
    
182,683,721
  
Undistributed net investment income
    
4,452
    
225,402
    
62,168
    
1,074,981
  
Undistributed/accumulated net realized gain (loss)
    
(2,312,253
)
  
(30,629
)
  
(1,166,561
)
  
33,245,163
  
Net unrealized appreciation of investments
    
330,401
    
34,852
    
1,007,954
    
42,103,934
  
Net unrealized depreciation on translation of assets and liabilities
denominated in foreign currencies and forward currency contracts
    
(101,003
)
 
—
    
—
    
—
  
Net Assets
  
$
3,444,572
  
$
3,564,734
  
$
5,495,352
  
$
259,122,318
  
Class 1
  
$
3,444,572
  
$
3,564,734
  
$
5,495,352
  
$
224,562,013
  
Class 2
                    
$
34,560,305
  
Shares of Capital Stock Outstanding:
                          
Class 1
    
336,668
    
377,515
    
503,076
    
12,569,120
  
Class 2
                      
1,949,979
  
Net Asset Value per Share:
Class 1
  
$
10.23
  
$
9.44
  
$
10.92
  
$
17.87
  
Class 2
                    
$
17.72
  
                           
____________
                          
*   Cost of investments are as follows:
  
$
3,134,134
  
$
3,512,143
  
$
4,550,337
  
$
215,920,955
  
**  Cost of foreign currencies as follows:
  
$
7,768
    
—
    
—
    
—
  
See Notes to Financial Statements.
                          


31

Seligman Portfolios, Inc.
Statements of Operations (unaudited)
 
For the Six Months Ended June 30, 2005
 
   
Seligman
Capital
Portfolio
  
Seligman
Cash
Management
Portfolio
  
Seligman
Common
Stock
Portfolio
  
Seligman
Communications
and Information
Portfolio
  
Seligman
Global
Technology
Portfolio
  
Investment Income:
Dividends*
  
$
28,411
  
$
—
  
$
88,547
  
$
66,999
  
$
18,078
  
Interest
    
3,725
    
66,775
    
2,846
    
21,870
    
702
  
Total Investment Income
    
32,136
    
66,775
    
91,393
    
88,869
    
18,780
  
Expenses:
Management fees
    
28,110
    
9,377
    
19,902
    
233,512
    
45,147
  
Shareholder account services
    
13,227
    
—
    
—
    
20,859
    
12,803
  
Custody and related services
    
9,594
    
740
    
5,136
    
35,103
    
30,530
  
Auditing fees
    
9,358
    
4,834
    
8,330
    
22,792
    
9,978
  
Distribution and service fees — Class 2
    
6,392
    
—
    
—
    
13,956
    
1,425
  
Shareholder reports and communications
    
3,386
    
25
    
462
    
4,513
    
2,016
  
Registration
    
3,091
    
565
    
876
    
6,219
    
4,171
  
Directors’ fees and expenses
    
2,804
    
2,662
    
2,751
    
3,135
    
2,432
  
Legal fees
    
2,291
    
1,280
    
2,027
    
12,291
    
2,195
  
Miscellaneous
    
2,092
    
481
    
1,152
    
5,146
    
1,903
  
Total Expenses Before Reimbursement
    
80,345
    
19,964
    
40,636
    
357,526
    
112,600
  
Reimbursement of expenses (Note 4)
    
—
    
(3,719
)
 
—
    
—
    
(25,396
)
Total Expenses After Reimbursement
    
80,345
    
16,245
    
40,636
    
357,526
    
87,204
  
Net Investment Income (Loss)
    
(48,209
)
 
50,530
    
50,757
    
(268,657
)
 
(68,424
)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Options Written:
Net realized gain on investments
    
505,018
    
—
    
489,050
    
1,480,055
    
216,309
  
Net realized gain on foreign currency transactions
    
—
    
—
    
—
    
—
    
75,725
  
Net realized gain on options written
    
—
    
—
    
14,479
    
—
    
—
  
Net change in unrealized appreciation/depreciation of investments and options written
    
(80,015
)
  
—
    
(757,319
)
  
(3,985,813
)
  
(582,660
)
Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
    
—
    
—
    
—
    
—
    
(166,391
)
Net Gain (Loss) on Investments, Foreign Currency Transactions, and Options Written
    
425,003
    
—
    
(253,790
)
 
(2,505,758
)
 
(457,017
)
Increase (Decrease) in Net Assets from Operations
  
$
376,794
  
$
50,530
  
$
(203,033
)
$
(2,774,415
)
$
(525,441
)
                                 
____________
                                
* Net of foreign tax withheld as follows:
  
$
30
    
—
  
$
915
  
$
2,075
  
$
1,584
  
See Notes to Financial Statements.
                                


32

Seligman Portfolios, Inc.
Statements of Operations (unaudited)
 
For the Six Months Ended June 30, 2005
 
   
Seligman
International
Growth
Portfolio
  
Seligman
Investment Grade
Fixed Income
Portfolio
  
Seligman
Large-Cap
Value
Portfolio
  
Seligman
Smaller-Cap
Value
Portfolio
  
Investment Income:
                          
Dividends*
  
$
45,912
  
$
—
  
$
51,517
  
$
1,340,827
  
Interest
    
110
    
74,434
    
844
    
16,131
  
Total Investment Income
    
46,022
    
74,434
    
52,361
    
1,356,958
  
Expenses:
Management fees
    
17,789
    
6,919
    
21,133
    
1,335,862
  
Shareholder account services
    
—
    
—
    
—
    
20,810
  
Custody and related services
    
66,657
    
6,844
    
1,180
    
39,470
  
Auditing fees
    
8,603
    
6,591
    
7,132
    
75,992
  
Distribution and service fees — Class 2
    
—
    
—
    
—
    
31,278
  
Shareholder reports and communications
    
381
    
351
    
402
    
6,820
  
Registration
    
647
    
649
    
724
    
7,671
  
Directors’ fees and expenses
    
2,547
    
2,678
    
2,356
    
5,533
  
Legal fees
    
1,629
    
1,449
    
1,792
    
23,650
  
Miscellaneous
    
1,351
    
651
    
1,452
    
21,268
  
Total Expenses Before Reimbursement
    
99,604
    
26,132
    
36,171
    
1,568,354
  
Reimbursement of expenses (Note 4)
    
(64,025
)
 
(11,429
)
 
—
    
—
  
Total Expenses After Reimbursement
    
35,579
    
14,703
    
36,171
    
1,568,354
  
Net Investment Income (Loss)
    
10,443
    
59,731
    
16,190
    
(211,396
)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized gain (loss) on investments
    
126,607
    
(16,196
)
  
84,924
    
9,637,309
  
Net realized gain from foreign currency transactions
    
47,291
    
—
    
—
    
—
  
Net change in unrealized appreciation
                          
(depreciation) of investments
    
(203,108
)
  
20,549
    
34,819
    
(33,578,968
)
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
    
(283,830
)
 
—
    
—
    
—
  
Net Gain (Loss) on Investments and Foreign Currency Transactions
    
(313,040
)
 
4,353
    
119,743
    
(23,941,659
)
Increase (Decrease) in Net Assets from Operations
  
$
(302,597
)
$
64,084
  
$
135,933
  
$
(24,153,055
)
                           
____________
                          
* Net of foreign tax withheld as follows:
  
$
6,720
    
—
    
—
  
$
3,745
  
See Notes to Financial Statements.
                          


33

Seligman Portfolios, Inc.
Statements of Changes in Net Assets (unaudited)
 
   
Seligman
Capital
Portfolio
  
Seligman
Cash Management
Portfolio
  
Seligman
Common Stock
Portfolio
  
   
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Operations:
Net investment income (loss)
  
$
(48,209
)
$
(86,531
)
$
50,530
  
$
14,307
  
$
50,757
  
$
146,396
  
Net realized gain on investments
    
505,018
    
2,347,345
    
—
    
—
    
489,050
    
1,294,008
  
Net realized gain on options written
    
—
    
—
    
—
    
—
    
14,479
    
—
  
Payments received from the Manager (Note 12)
    
—
    
339
    
—
    
—
    
—
    
1,172
  
Net change in unrealized appreciation/
depreciation of investments and options written
    
(80,015
)
 
(984,400
)
 
—
    
—
    
(757,319
)
 
(148,909
)
Increase (Decrease) in Net Assets From Operations
    
376,794
    
1,276,753
    
50,530
    
14,307
    
(203,033
)
 
1,292,667
  
Distributions to Shareholders:
Net investment income — Class 1
    
—
    
—
    
(50,530
)
 
(14,307
)
 
—
    
(106,774
)
Decrease in Net Assets From Distributions
    
—
    
—
    
(50,530
)
 
(14,307
)
 
—
    
(106,774
)
Capital Share Transactions:
Proceeds from sale of shares:
                                      
Class 1
    
257,082
    
308,391
    
19,608,522
    
2,741,257
    
598,185
    
273,107
  
Class 2
    
287,562
    
1,091,260
    
—
    
—
    
—
    
—
  
Value of shares issued in payment of:
                                      
Dividends — Class 1
    
—
    
—
    
50,530
    
14,307
    
—
    
106,774
  
Total
    
544,644
    
1,399,651
    
19,659,052
    
2,755,564
    
598,185
    
379,881
  
Cost of shares redeemed:
                                      
Class 1
    
(1,846,255
)
  
(3,852,959
)
  
(2,245,397
)
  
(4,961,041
)
  
(1,832,395
)
  
(3,070,329
)
Class 2
    
(644,582
)
 
(456,269
)
 
—
    
—
    
—
    
—
  
Total
    
(2,490,837
)
 
(4,309,228
)
 
(2,245,397
)
 
(4,961,041
)
 
(1,832,395
)
 
(3,070,329
)
Increase (Decrease) in Net Assets From Capital Share Transactions
    
(1,946,193
)
 
(2,909,577
)
 
17,413,655
    
(2,205,477
)
 
(1,234,210
)
 
(2,690,448
)
Increase (Decrease) in Net Assets
    
(1,569,399
)
 
(1,632,824
)
 
17,413,655
    
(2,205,477
)
 
(1,437,243
)
 
(1,504,555
)
Net Assets:
Beginning of period
    
15,206,003
    
16,838,827
    
1,828,268
    
4,033,745
    
10,792,278
    
12,296,833
  
End of Period*
  
$
13,636,604
  
$
15,206,003
  
$
19,241,923
  
$
1,828,268
  
$
9,355,035
  
$
10,792,278
  
                                       
____________
                                      
*  Including undistributed net investment income
(net of  accumulated net investment loss) as follows:
  
$
(53,323
)
$
(5,114
)
  
—
    
—
  
$
188,625
  
$
137,868
  
See Notes to Financial Statements.

34

Seligman Portfolios, Inc.
Statements of Changes in Net Assets (unaudited)
 
   
Seligman
Communications and
Information Portfolio
  
Seligman
Global Technology
Portfolio
  
Seligman
International Growth
Portfolio
  
   
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Operations:
Net investment income (loss)
  
$
(268,657
)
$
(137,411
)
$
(68,424
)
$
(124,228
)
$
10,443
  
$
(14,403
)
Net realized gain on investments
    
1,480,055
    
11,032,600
    
216,309
    
785,099
    
126,607
    
318,101
  
Net realized loss on options written
    
—
    
(1,444
)
  
—
    
—
    
—
    
—
  
Net realized gain from foreign currency transactions
    
—
    
—
    
75,725
    
208,233
    
47,291
    
156,268
  
Payments received from the Manager (Note 12)
    
—
    
9,056
    
—
    
977
    
—
    
—
  
Net change in unrealized appreciation/depreciation of investments
    
(3,985,813
)
  
(3,864,957
)
  
(582,660
)
  
(390,363
)
  
(203,108
)
  
314,099
  
Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
    
—
    
—
    
(166,391
)
 
(113,550
)
 
(283,830
)
 
(3,385
)
Increase (Decrease) in Net Assets From Operations
    
(2,774,415
)
 
7,037,844
    
(525,441
)
 
366,168
    
(302,597
)
 
770,680
  
Distributions to Shareholders:
Net investment income — Class 1
    
—
    
—
    
—
    
—
    
—
    
(12,876
)
Decrease in Net Assets From Distributions
    
—
    
—
    
—
    
—
    
—
    
(12,876
)
Capital Share Transactions:
Proceeds from sale of shares:
                                      
Class 1
    
979,547
    
3,052,644
    
67,725
    
175,793
    
652,291
    
442,720
  
Class 2
    
788,361
    
3,453,375
    
522,157
    
973,614
    
—
    
—
  
Value of shares issued in payment of:
                                      
Dividends — Class 1
    
—
    
—
    
—
    
—
    
—
    
12,876
  
Total
    
1,767,908
    
6,506,019
    
589,882
    
1,149,407
    
652,291
    
455,596
  
Cost of shares redeemed:
                                      
Class 1
    
(9,306,003
)
  
(13,233,544
)
  
(1,630,870
)
  
(2,066,536
)
  
(654,291
)
  
(954,496
)
Class 2
    
(1,498,403
)
 
(3,604,754
)
 
(858,483
)
 
(1,310,258
)
 
—
    
—
  
Total
     
(10,804,406
)
 
(16,838,298
)
 
(2,489,353
)
 
(3,376,794
)
 
(654,291
)
 
(954,496
)
Decrease in Net Assets From Capital Share Transactions
    
(9,036,498
)
 
(10,332,279
)
 
(1,899,471
)
 
(2,227,387
)
 
(2,000
)
 
(498,900
)
Increase (Decrease) in Net Assets
    
(11,810,913
)
  
(3,294,435
)
  
(2,424,912
)
  
(1,861,219
)
  
(304,597
)
  
258,904
  
Net Assets:
                                      
Beginning of period
    
70,888,242
    
74,182,677
    
10,656,070
    
12,517,289
    
3,749,169
    
3,490,265
  
End of Period*
  
$
59,077,329
  
$
70,888,242
  
$
8,231,158
  
$
10,656,070
  
$
3,444,572
  
$
3,749,169
  
                                       
____________
                                      
* Including undistributed net investment
  income (net of accumulated net investment loss)
  as follows:
  
$
(290,022
)
$
(4,983
)
$
(73,895
)
$
(3,396
)
$
4,452
  
$
(5,161
)
See Notes to Financial Statements.

35

Seligman Portfolios, Inc.
Statements of Changes in Net Assets (unaudited)


   
Seligman
Investment Grade
Fixed Income
Portfolio
  
Seligman
Large-Cap Value
Portfolio
  
Seligman
Smaller-Cap
Value Portfolio
  
   
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Six Months
Ended
June 30, 2005
  
Year
Ended
December 31,
2004
  
Operations:
Net investment income (loss)
  
$
59,731
  
$
144,570
  
$
16,190
  
$
47,855
  
$
(211,396
)
$
1,284,684
  
Net realized gain (loss) on investments
    
(16,196
)
  
11,350
    
84,924
    
340,466
    
9,637,309
    
23,976,151
  
Payments received from the Manager (Note 12)
    
—
    
—
    
—
    
744
    
—
    
4,005
  
Net change in unrealized appreciation/
depreciation of investments
    
20,549
    
(38,156
)
 
34,819
    
409,496
    
(33,578,968
)
 
20,595,248
  
Increase (Decrease) in Net Assets
From Operations
    
64,084
    
117,764
    
135,933
    
798,561
    
(24,153,055
)
 
45,860,088
  
Distributions to Shareholders:
Net investment income — Class 1
    
—
    
(293,991
)
  
—
    
(61,944
)
  
—
    
—
  
Net realized short-term gain
                                      
on investments — Class 1
    
—
    
(169,248
)
  
—
    
—
    
—
    
—
  
Net realized long-term gain on investments:
                                      
Class 1
    
—
    
(134,813
)
  
—
    
—
    
—
    
(433,559
)
Class 2
     
—
    
—
    
—
    
—
    
—
    
(54,692
)
Decrease in Net Assets From Distributions
    
—
    
(598,052
)
 
—
    
(61,944
)
 
—
    
(488,251
)
Capital Share Transactions:
Proceeds from sale of shares:
                                      
Class 1
    
488,415
    
1,028,058
    
1,108,289
    
445,045
    
7,704,748
    
92,028,338
  
Class 2
    
—
    
—
    
—
    
—
    
6,578,027
    
16,417,372
  
Value of shares issued in payment of:
                                      
Dividends — Class 1
    
—
    
293,991
    
—
    
61,944
    
—
    
—
  
Gain distributions:
                                      
Class 1
    
—
    
304,061
    
—
    
—
    
—
    
433,559
  
Class 2
    
—
    
—
    
—
    
—
    
—
    
54,692
  
Total
    
488,415
    
1,626,110
    
1,108,289
    
506,989
    
14,282,775
    
108,933,961
  
Cost of shares redeemed:
                                      
Class 1
    
(548,737
)
  
(3,610,225
)
  
(1,090,594
)
  
(1,357,550
)
  
(30,191,564
)
  
(79,099,629
)
Class 2
    
—
    
—
    
—
    
—
    
(3,808,045
)
 
(6,716,920
)
Total
    
(548,737
)
 
(3,610,225
)
 
(1,090,594
)
 
(1,357,550
)
 
(33,999,609
)
 
(85,816,549
)
Increase (Decrease) in Net Assets From
Capital Share Transactions
    
(60,322
)
 
(1,984,115
)
 
17,695
     
(850,561
)
 
(19,716,834
)
 
23,117,412
  
Increase (Decrease) in Net Assets
    
3,762
    
(2,464,403
)
  
153,628
    
(113,944
)
  
(43,869,889
)
  
68,489,249
  
Net Assets:
                                      
Beginning of period
    
3,560,972
    
6,025,375
    
5,341,724
    
5,455,668
    
302,992,207
    
234,502,958
  
End of Period*
  
$
3,564,734
  
$
3,560,972
  
$
5,495,352
  
$
5,341,724
  
$
259,122,318
  
$
302,992,207
  
                                       
____________
                                      
* Including undistributed net investment income as follows:
  
$
225,402
  
$
161,698
  
$
62,168
  
$
45,978
  
$
1,074,981
  
$
1,286,593
  
See Notes to Financial Statements.

36

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 9 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 Global Technology Portfolio (“Global Technology Portfolio”), Seligman International Growth Portfolio (“International Growth Portfolio”), Seligman Investment Grade Fixed Income Portfolio (“Investment Grade Portfolio”), Seligman Large-Cap Value Portfolio (“Large-Cap Value Portfolio”), and Seligman Smaller-Cap Value Portfolio, formerly Seligman Small-Cap Value Portfolio (“Smaller-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. Class 2 shares of the Communications and Information Portfolio are also offered to qualified pension or retirement plans.
     
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 United States (“US”) generally accepted accounting principles, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from these estimates. These unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented. All such adjustments are of a normal recurring nature. The following summarizes the significant accounting policies of the Fund:
 
a.
Security Valuation — Net asset value per share is calculated as of the close of business of the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time. Securities traded on an exchange are valued at the last sales price on the primary exchange or market on which they are traded. Securities not listed on an exchange or security market, or securities for which there is no last sales price, are valued at the mean of the most recent bid and asked prices or by independent pricing services based on bid prices which consider such factors as coupons, maturities, credit ratings, liquidity, specific terms and features, and the US Treasury yield curve, or are valued by J. & W. Seligman & Co. Incorporated (the “Manager”) based on quotations provided by primary market makers in such securities. Notwithstanding these valuation methods, the Global Technology Portfolio and International Growth Portfolio may adjust the value of securities as described below in order to reflect the fair value of such securities.
     
   
Many securities markets and exchanges outside the US close prior to the close of the NYSE; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after the local market close but before the close of the NYSE. The Board of Directors (the “Board”) of the Fund approved “fair value” procedures under which a third-party service on a regular basis recommends adjustments to the local closing prices of certain foreign equity securities. The adjustments are based on a statistical analysis of the historical relationship between the price movements of a security and independent variables such as US market movements, sector movements, movements in the ADR of a security (if any), and movements in country or regional exchange-traded funds or futures contracts. The factors used vary with each security, depending on which factors have been most important historically.
     
    Securities for which market quotations are not readily available are valued at fair value determined in accordance with procedures approved by the Board. This can occur in the event of, among other things, natural disasters, acts of terrorism, market disruptions, intra-day trading halts and extreme market volatility.
     
   
Short-term holdings that mature in more than 60 days are valued at current market quotations. Short-term holdings maturing in 60 days or less are valued at amortized cost.
     
   
Investments held by the 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 net asset values.  
     
 
b.
Foreign Securities — The Portfolios may invest up to 10% of their total assets in foreign securities (except 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 (“ADR”), American Depositary Shares (“ADS”), European Depositary Receipts (“EDR”), Fiduciary Depositary Receipts (“FDR”), Global Depositary Receipts (“GDR”), and Global Depositary Shares (“GDS”). ADR and ADS are issued by domestic banks or trust companies and evidence ownership of securities issued by foreign corporations. ADR and ADS are traded on United States exchanges or over-the-counter and are not included in the 10% limitation. EDR, FDR, GDR, and GDS are receipts similar to ADR and ADS 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.

37


Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)

   
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 losses. 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 and 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 Seligman International Portfolios separate that portion of the results of operations resulting from changes in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of securities held in the portfolios. Similarly, these Portfolios separate the effect of changes in foreign currency exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.
     
 
c.
Forward Currency Contracts — Each Portfolio, other than Cash Management Portfolio and Investment Grade Portfolio, may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings, or other amounts receivable or payable in foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. The contracts are valued daily at current 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.
Options —Each Portfolio, other than Cash Management Portfolio and Investment Grade Portfolio, is authorized to write and purchase put and call options. When a Portfolio writes an option, an amount equal to the premium received by the Portfolio is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Portfolio enters into a closing transaction), the Portfolio realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). The Portfolio, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non-income producing investments.
     
 
e.
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 and interest, and for certain countries, taxes on the sale of foreign securities have been provided for in accordance with the Portfolios’ understanding of the applicable country’s tax rules and rates.
     
 
f.
Security Transactions and Related Investment Income — Investment transactions are recorded on trade dates. Identified cost of investments sold is used for both financial statement and federal income tax purposes. Interest income is recorded on the accrual basis. The Portfolios amortize 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 Portfolio is informed of the dividend.
     
 
g.
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, 2005, 12b-1 fees were the only class-specific expenses.
     
 
h.
Repurchase Agreements — The Portfolios may enter into repurchase agreements with commercial banks and with broker/dealers deemed to be creditworthy by the Manager. Securities purchased subject to repurchase agreements are deposited with the Portfolios’ custodians and, pursuant to the terms of the repurchase 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.
     
 
i.
Distributions to Shareholders — Dividends and distributions to shareholders are recorded on ex-dividend dates.
     
4.
Management Fee, Distribution 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 and Investment Grade Portfolios’ average daily net assets; and equal to 0.75%,


38


Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)

  on an annual basis, of Communications and Information Portfolio’s average daily net assets. The Manager’s fee for the Global Technology Portfolio is equal to 1.00% per annum of the first $2 billion of average daily net assets, 0.95% per annum of the next $2 billion of average daily net assets, and 0.90% per annum in excess of $4 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 Smaller-Cap Value Portfolio is equal to 1.00% per annum of the first $500 million of average daily net assets, 0.90% per annum of the next $500 million of average daily net assets, and 0.80% per annum in excess of $1 billion of average daily net assets of the Portfolio. The Manager’s fee for the International Growth Portfolio is equal to 1.00% per annum on the first $50 million of average daily net assets, 0.95% per annum on the next $1 billion of average daily net assets, and 0.90% per annum in excess of $1.05 billion of average daily net assets of the Portfolio.
   
 
For the six months ended June 30, 2005, the management fees for the Global Technology Portfolio, the Large-Cap Value Portfolio, the Smaller-Cap Value Portfolio, and the International Growth Portfolio were equal to 1.00%, 0.80%, 1.00%, and 1.00%, respectively, per annum of the average daily net assets of each of these Portfolios.
   
 
Wellington Management Company, LLP (the “Subadviser”), is the subadviser to the International Growth Portfolio and is responsible for furnishing investment advice, research and assistance. Under the subadvisory agreement, the Manager pays the Subadviser a subadvisory fee determined as follows: the Subadviser receives 0.45% on the first $50 million of the Portfolio’s average daily net assets and 0.40% of the Portfolio’s average daily net assets in excess of $50 million. The Subadviser has agreed to limit the subadvisory fees payable to it by the Manager for a period of two years from September 15, 2003 to 50% of the aggregate contractual management fee earned by the Manager in respect of the International Growth Portfolio, and certain series of Seligman Global Fund Series, Inc.
   
 
The Manager reimburses expenses, other than management and 12b-1 fees, that exceed a certain rate per annum of the average daily net assets of the following Portfolios:
 
 
Portfolio
Rate
 
Portfolio
Rate
 
Cash Management
0.30%
  
International Growth
1.00%
 
Global Technology
0.90   
 
Investment Grade
0.45   
 
Such reimbursements may be terminated at any time.
    

 
The amounts of these reimbursements, where applicable, for the six months ended June 30, 2005, are disclosed in the Statements of Operations, and such amounts receivable from the Manager at June 30, 2005 are disclosed in the Statements of Assets and Liabilities.
   
  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”), an affiliate of the Manager, acts as distributor of shares of the Fund. 
   
 
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 or qualified plan 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, 2005, fees incurred under the Plan aggregated $6,392, or 0.25% per annum; $13,956, or 0.25% per annum; $1,425 or 0.15% per annum; and $31,278 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 Smaller-Cap Value Portfolio, respectively.
   
 
Certain officers and directors of the Fund are officers or directors of the Manager and the Distributor.
   
 
The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Directors may elect to have their deferred fees accrue interest or earn a return based on the performance of the other funds in the Seligman Group of Investment Companies. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid. The cost of such fees and earnings/loss accrued thereon is included in directors’ fees and expenses, and the accumulated balances at June 30, 2005, are included in accrued expenses and other liabilities, as follows:

 
Portfolio
Amount
 
Portfolio
Amount
 
Capital
$7,443
  
International Growth
$7,540
 
Cash Management
7,275
  
Investment Grade
7,206
 
Common Stock
7,669
  
Large-Cap Value
4,024
 
Communications and Information
7,636
  
Smaller-Cap Value
4,658
 
Global Technology
5,870
      

 
The accumulated balance at June 30, 2005 includes each Portfolio’s proportionate share of the accumulated balance of six other portfolios of the Fund that were closed as of May 31, 2005.


39

Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)
 
5.
Purchases and Sales of Securities — Purchases and sales of portfolio securities, excluding options, US Government obligations and short-term investments, for the six months ended June 30, 2005, were as follows:
 
 
Portfolio
Purchases
Sales
  
Portfolio
Purchases
Sales
 
Capital
$11,003,273
$12,864,827
  
International Growth
$ 3,607,979
$3,676,255
 
Common Stock
3,411,176
4,837,208
  
Investment Grade
4,387,877
3,978,105
 
Communications and Information
35,530,584
40,948,212
  
Large-Cap Value
662,676
793,118
 
Global Technology
6,293,957
8,205,419
  
Smaller-Cap Value
42,078,401
64,460,548
 
 
For the six months ended June 30, 2005, purchases and sales of US Government obligations were $3,372,367 and $2,924,128, respectively, for the Investment Grade Portfolio.
   
6.
Federal Tax Information — Certain components of income, expense and realized capital gain and loss are recognized at different times or have a different character for federal income tax purposes and for financial reporting purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset value per share of the Fund. As a result of the differences described above, 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. Further, the cost of investments also can differ for federal income tax purposes.
   
  The tax basis information presented below is based on operating results for the six months ended June 30, 2005 and will vary from the final tax information as of the Fund’s year-end. 
   
 
At June 30, 2005, the cost of investments for federal income tax purposes for each Portfolio was as follows:

 
Portfolio
Tax Basis Cost
  
Portfolio
Tax Basis Cost
 
Capital
$  12,339,863
 
International Growth
$    3,137,757
 
Common Stock
8,981,697
 
Investment Grade
3,514,272
 
Communications and Information
60,223,028
 
Large-Cap Value
4,550,337
 
Global Technology
7,708,305
 
Smaller-Cap Value
215,959,601

 
The tax basis cost was greater than the cost for financial reporting purposes primarily due to the tax deferral of losses on wash sales. At June 30, 2005, the tax basis components of accumulated earnings (losses) were as follows:
 
     
Capital
 
Common
Stock
 
Communications
and Information
 
Global
Technology
  
 
Gross unrealized appreciation of portfolio securities and options written
  
$
1,726,188
  
$
915,731
  
$
3,402,579
 *
$
479,866
 *
 
Gross unrealized depreciation of portfolio securities
    
(191,832
)
  
(578,772
)
  
(5,039,741
 )*  
(328,567
 )*
 
Net unrealized appreciation (depreciation) of portfolio securities and options written
    
1,534,356
    
336,959
    
(1,637,162
 )*  
151,299
 *
 
Net unrealized depreciation on foreign currencies and forward currency contracts
    
—
    
—
    
—
    
(585
)
 
Undistributed ordinary income
    
—
    
193,440
    
—
    
—
  
 
Current period net realized gain
    
485,105
    
524,275
    
1,446,051
    
312,878
  
 
Capital loss carryforward
    
(11,574,636
)
  
(3,357,578
)
  
(39,221,761
)
  
(13,454,726
)
 
Total accumulated losses
  
$
(9,555,175
)
$
(2,302,904
)
$
(39,412,872
)
$
(12,991,134
)
                             
 
 
 
International Growth 
 
 
Investment
Grade
 
 
Large-Cap
Value
 
Smaller-CapValue
 
Gross unrealized appreciation of portfolio securities
  
$
272,676
 *
$
41,236
  
$
1,200,178
  
$
59,010,437
  
 
Gross unrealized depreciation of portfolio securities
    
(47,172
 )*  
(8,513
)
  
(192,224
)
  
(16,945,149
)
 
Net unrealized appreciation (depreciation) of portfolio securities
    
225,504
 *  
32,723
    
1,007,954
    
42,065,288
  
 
Net unrealized appreciation on foreign currencies and forward currency contracts
    
271
    
—
    
—
    
—
  
 
Undistributed ordinary income
    
9,186
    
229,566
    
64,694
    
1,079,639
  
 
Current period net realized gain (loss)
    
168,405
    
(18,554
)
  
84,924
    
9,637,525
  
 
Capital loss carryforward
    
(2,477,035
)
  
(9,586
)
  
(1,251,485
)
  
—
  
 
Prior year’s undistributed net realized gain
    
—
    
—
    
—
    
23,646,284
  
 
Total accumulated earnings (losses)
  
$
(2,073,669
)
$
234,149
  
$
(93,913
)
$
76,428,736
  
 
____________
*
Includes the effect of foreign currency translations.


40
 
Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)

 
At December 31, 2004, the Portfolios had net capital loss carryforwards for federal income tax purposes which are available for offset against future taxable net capital gains. The amounts were determined after adjustments for certain differences between financial reporting and tax purposes, such as wash sale losses. 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. These loss carryforwards expire in amounts and fiscal years as follows:

 
Fiscal
Year
Capital
Common
Stock
Communications
and Information
Global
Technology
International
Growth
Investment
Grade
Large-Cap
Value
 
 
2008
—
—
—
—
$   211,785
—
—
 
2009
$  4,939,075
—
$ 14,208,262
$  8,404,458
1,358,382
—
—
 
2010
6,635,561
$ 2,991,017
19,435,297
4,941,506
906,868
—
$   601,648
 
2011
—
366,561
5,578,202
108,762
—
—
649,837
 
2012
—
—
—
—
—
$9,586
—
 
Total
$11,574,636
$ 3,357,578
$ 39,221,761
$13,454,726
$2,477,035
$9,586
$1,251,485
 
7.
Committed Line of Credit — All of the Portfolios, except the Cash Management Portfolio, are participants in a joint $400 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 participating 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 2006, but is renewable annually with the consent of the participating banks. For the six months ended June 30, 2005, the Fund did not borrow from the credit facility.
   
8.
Outstanding Forward Exchange Currency Contracts — At June 30, 2005, the Fund had outstanding forward exchange currency contracts to purchase or sell foreign currencies as follows:
 
 
Contract
  
Foreign
Currency
  
In Exchange
for US$
  
Settlement
Date
  
Value
US$
  
Unrealized
Appreciation
(Depreciation)
  
 
Communications and Information
                      
 
Bought:
                      
 
Japanese yen
  
15,707,463
  
141,751
  
7/1/05
  
141,623
  
$(128
 )
 
Japanese yen
  
17,589,688
  
158,737
  
7/5/05
  
158,594
  
(143
 )
 
Total
                  
$(271
 )
 
Sold:
                      
 
Indian rupees
  
3,129,307
  
71,822
  
6/30/05
  
71,913
  
$ (91
 )
                         
 
Global Technology
                      
 
Bought:
                      
 
Japanese yen
  
3,657,518
  
33,250
  
7/1/05
  
32,977
  
$(273
 ) 
 
Japanese yen
  
589,601
  
5,331
  
7/5/05
  
5,316
  
(15
 ) 
 
Japanese yen
  
582,819
  
5,270
  
7/5/05
  
5,255
  
(15
 )
 
Total
                  
$(303
 ) 
 
Sold:
                      
 
Japanese yen
  
5,100,967
  
46,350
  
7/1/05
  
45,992
  
$358
  
 
Japanese yen
  
4,527,824
  
41,145
  
7/1/05
  
40,824
  
321
  
 
Total
                  
$679
  
 
International Growth
                      
 
Bought:
                      
 
Euros
  
1,260
  
1,520
  
7/1/05
  
1,524
  
$   4
  
 
Swiss francs
  
9,176
  
7,169
  
7/1/05
  
7,154
  
(15
 ) 
 
Swiss francs
  
3,543
  
2,767
  
7/1/05
  
2,762
  
(5
 ) 
 
Total
                  
$ (16
 ) 
 
Sold:
                      
 
British pounds
  
3,576
  
6,491
  
7/1/05
  
6,410
  
81
  
 
British pounds
  
1,450
  
2,617
  
7/5/05
  
2,599
  
18
  
 
British pounds
  
942
  
1,687
  
7/5/05
  
1,689
  
(2
 ) 
 
Euros
  
3,349
  
4,048
  
7/5/05
  
4,051
  
(3
 ) 
 
Euros
  
4,573
  
5,537
  
7/5/05
  
5,533
  
4
  
 
Total
                  
$ 98
  

41


Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)
 
 
9.
Capital Stock Transactions — At June 30, 2005, there were 100,000,000 shares of Capital Stock authorized for each of Capital, Cash Management, Common Stock, Global Technology, International Growth, Investment Grade and Large-Cap Value Portfolios; and 150,000,000 for each of Communications and Information and Smaller-Cap Value Portfolios, all at a par value of $0.001 per share.

Transactions in shares of Capital Stock were as follows:

     
Capital Portfolio
          
     
Class 1
  
Class 2
  
Cash Management
Portfolio
  
Common Stock
Portfolio
  
     
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
 
Sale of shares
  
21,191
  
26,469
  
23,714
  
95,256
  
19,608,522
  
2,741,317
  
56,301
  
27,017
  
 
Shares issued in payment
of dividends
  
—
  
—
  
—
  
—
  
50,530
  
14,307
  
—
  
10,044
  
 
Total
  
21,191
  
26,469
  
23,714
  
95,256
   
19,659,052
  
2,755,624
  
56,301
  
37,061
  
 
Shares redeemed
  
(151,361
 )
(331,842
 )
(53,546
 )
(40,129
 ) 
(2,245,397
 )
(4,961,041
 )
(174,947
 )
(305,754
 ) 
 
Increase (decrease) in shares
  
(130,170
 )
(305,373
 )
(29,832
 )
55,127
  
17,413,655
  
(2,205,417
 )
(118,646
 )
(268,693
 )

     
Communications and Information Portfolio
  
Global Technology Portfolio
  
     
Class 1
  
Class 2
  
Class 1
  
Class 2
  
     
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
 
Sale of shares
  
79,770
  
254,974
  
65,936
  
292,045
  
5,611
  
14,711
  
45,782
  
83,296
  
 
Shares redeemed
  
(769,453
 )
(1,127,141
 )
(124,178
 )
(312,377
 )
(138,482
 )
(174,462)
  
(74,604
 )
(111,756
 )
 
Decrease in shares
  
(689,683
 )
(872,167
 )
(58,242
 )
(20,332
 ) 
(132,871
 )
(159,751)
  
(28,822
 )
(28,460
 )
 
   
International
Growth
Portfolio
  
Investment Grade
Fixed Income
Portfolio
  
Large-Cap
Value
Portfolio
  
   
Six
Months
Ended
6/30/05
  
Year
Ended
12/31/04
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
 
Sale of shares
62,405
  
45,184
  
52,404
  
95,293
  
103,498
  
46,921
  
 
Shares issued in payment of dividends
—
  
1,211
  
—
  
31,714
  
—
  
6,020
  
 
Shares issued in payment of gain distributions
—
  
—
   
—
  
32,801
   
—
  
—
  
 
Total
62,405
  
46,395
  
52,404
  
159,808
  
103,498
  
52,941
  
 
Shares redeemed
(63,395
 ) 
(97,775
 )  
(59,071
 ) 
(330,962
 )  
(102,120
 ) 
(139,605
 ) 
 
Increase (decrease) in shares
(990
 ) 
(51,380
 )  
(6,667
 ) 
(171,154
 )  
1,378
  
(86,664
 ) 
 
   
Smaller-Cap Value Portfolio
  
   
Class 1
  
Class 2
  
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
   
Six Months
Ended
6/30/05
  
Year
Ended
12/31/04
  
 
Sale of shares
428,301
  
5,300,154
  
368,386
  
953,060
  
 
Shares issued in payment of gain distributions
—
  
23,247
   
—
  
2,953
  
 
Total
428,301
  
5,323,401
  
368,386
  
956,013
  
 
Shares redeemed
(1,695,434)
  
(4,732,076)
   
(213,706)
  
(399,001)
  
 
Increase (decrease) in shares
(1,267,133
  
591,325
   
154,680
  
557,012
  


42

Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)


10.
Indemnification — In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Fund’s maximum exposure under these arrangements is unknown, as this would include future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
  
     
11.
Options Written — Transactions in options written during the six months ended June 30, 2005, were as follows:
  

     
Call Options
  
 
 
Shares Subject to Call
   
Premiums
  
 
Common Stock Portfolio
        
 
Options outstanding, December 31, 2004
—
  
—
  
 
Options written
14,300 
 
$16,983 
 
 
Options expired
(1,700)
   
(2,999)
  
 
Options outstanding, June 30, 2005
12,600 
  
$13,984  
  

12.
Other Matters — The Manager conducted an extensive internal review in response to developments regarding disruptive or illegal trading practices within the mutual fund industry. As of September 2003, the Manager had one arrangement that permitted frequent trading in the Seligman registered investment companies (“Seligman Funds”). This arrangement was in the process of being closed down by the Manager before the first proceedings relating to trading practices within the mutual fund industry were publicly announced. Based on a review of the Manager’s records for 2001 through 2003, the Manager identified three other arrangements that had permitted frequent trading in the Seligman Funds. All three had already been terminated prior to the end of September 2002. The Securities and Exchange Commission (the “SEC”) and the Attorney General of the State of New York also are reviewing these matters.
   
 
The Manager also has reviewed its practice of placing some of the Seligman Funds’ orders to buy and sell portfolio securities with brokerage firms in recognition of their sales of Seligman Funds. At the time such orders were placed, this practice was permissible when done properly; however, the Manager believes that it may have violated applicable requirements for certain of such orders as a result of compensation arrangements the Manager had with certain brokerage firms. The Manager discontinued this practice entirely in October 2003. The Manager is confident that the execution of all such orders was consistent with its best execution obligations and that the Seligman Funds did not pay higher brokerage commissions than they would otherwise have paid for comparable transactions. The Manager has also responded fully to information requests from the SEC and the NASD relating to the Manager’s use of revenue sharing and fund portfolio brokerage commissions and will continue to provide additional information if, and as, requested.
   
 
The results of the Manager’s internal reviews were presented to the Independent Directors of the Seligman Funds. In order to resolve matters with the Independent Directors relating to the four arrangements that permitted frequent trading, which did not affect the Seligman Portfolios, Inc., the Manager has made payments to three funds and has agreed to waive a portion of its management fee with respect to another fund. In order to resolve matters with the Independent Directors with regard to portfolio brokerage commissions, in May 2004, the Manager made payments to each of twenty-four funds in an amount equal to the commissions paid by each such fund during the period from 1998 through 2003 to certain brokerage firms in recognition of sales of fund shares, including the following amounts paid to certain portfolios of Seligman Portfolios, Inc., which have been reported as Payments received from the Manager in the Statements of Changes in Net Assets for the year ended December 31, 2004:

 
Portfolio
Amount
   
Portfolio
Amount
  
 
Capital
$   339
  
Global Technology
$   977
  
 
Common Stock
1,172
  
Large-Cap Value
744
  
 
Communications and Information
9,056
  
Smaller-Cap Value
4,005
  

13.
Liquidation of Certain Portfolios and Redemption of Shares — The Board authorized the redemption of all outstanding shares of six portfolios previously offered by the Fund: Frontier Portfolio, Global Growth Portfolio, Global Smaller Companies Portfolio, High-Yield Bond Portfolio, Income and Growth Portfolio and Large-Cap Growth Portfolio (the “Redeeming Portfolios”), and the liquidation of the Redeeming Portfolios in accordance with the Fund’s Articles of Incorporation. The shares of the Redeeming Portfolios were redeemed on May 31, 2005 (the “Redemption Date”). Prior to the Redemption Date, contract holders who had allocated a portion of their investments to a Redeeming Portfolio allocated that portion of their investments to the other Portfolios or other investment options that continued to be offered by the variable insurance program in which they participate. Amounts not allocated to another Portfolio by the Redemption Date were automatically allocated to a similar money-market fund, including, in some cases, the Fund’s Cash Management Portfolio.


43


Seligman Portfolios, Inc.
Financial Highlights (unaudited)

The tables below are intended to help you understand the financial performance of each Class of each Portfolio for the periods presented. 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
       
 Year Ended December 31,
  
Per Share Data:
 Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
    
$
12.25
   
$
11.28
  
$
8.29
    
$
12.37
  
$
24.68
  
$
23.90
  
Income (Loss) from Investment Operations:
                                      
Net investment income (loss)
    
(0.04
)
  
(0.05
)
  
(0.03
)
  
(0.05
)
  
(0.06
)
  
0.02
  
Net realized and unrealized gain (loss) on investments
    
0.40
    
1.02
    
3.02
    
(4.03
)
 
(4.01
)
 
2.06
  
Total from Investment Operations
    
0.36
    
0.97
    
2.99
    
(4.08
)
 
(4.07
)
 
2.08
  
Less Distributions:
                                      
Dividends from net investment income
    
—
    
—
    
—
    
—
    
(0.02
)
  
—
  
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(8.22
)
  
(1.30
)
Total Distributions
    
—
    
—
    
—
    
—
    
(8.24
)
 
(1.30
)
Net Asset Value, End of Period
  
$
12.61
   
$
12.25
   
$
11.28
   
$
8.29
   
$
12.37
   
$
24.68
 
Total Return
    
2.94
%
  
8.60
%
  
36.07
%
  
(32.98
)%
  
(15.97
)%
  
8.50
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
 
$
8,470
 
$
9,821
 
$
12,486
 
$
11,833
 
$
24,349
 
$
37,138
 
Ratio of expenses to average net assets
    
1.05
 %†  
0.92
%
  
0.82
%
  
0.80
%
  
0.61
%
  
0.59
%
Ratio of net investment income (loss) to average net assets
    
(0.60
 )%†   
(0.46
)%
  
(0.33
)%
  
(0.47
)%
  
(0.31
)%
  
0.07
%
Portfolio turnover rate
    
79.00
%
  
213.08
%
  
140.59
%
  
129.07
%
  
215.16
%
  
230.42
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                
0.96
%
  
0.81
%
  
0.70
%
      
Ratio of net investment loss to average net assets
                
(0.47
)%
  
(0.48
)%
  
(0.39
)%
      
___________
†
Annualized.
ø
The Manager, at its discretion, reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

44

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Capital Portfolio (continued)

CLASS 2
   
 Year Ended December 31,
      
Per Share Data:
 Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
8/30/00*
to
12/31/00
  
Net Asset Value, Beginning of Period
  
$
12.13
  
$
11.20
  
$
8.25
  
$
12.34
  
$
24.68
  
$
33.31
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.05
)
  
(0.08
)
  
(0.05
)
  
(0.07
)
  
(0.11
)
  
(0.05
)
Net realized and unrealized gain (loss) on investments
    
0.40
    
1.01
    
3.00
    
(4.02
)
 
(4.01
)
  
(7.28
)
Total from Investment Operations
    
0.35
    
0.93
    
2.95
    
(4.09
)
  
(4.12
)
  
(7.33
)
Less Distributions:
                                      
Distribution from net realized capital gain
    
—
    
—
    
—
    
—
    
(8.22
)
  
(1.30
)
Total Distributions
    
—
    
—
    
—
    
—
    
(8.22
)
  
(1.30
)
Net Asset Value, End of Period
  
$
12.48
  
$
12.13
  
$
11.20
  
$
8.25
  
$
12.34
   
$
24.68
  
Total Return
    
2.89
%
  
8.30
%
  
35.76
%
  
(33.14
)%
  
(16.18
)%
  
(22.15
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
 
$
5,166
 
$
5,385
 
$
4,353
 
$
2,891
 
$
3,792
 
$
1,569
 
Ratio of expenses to average net assets
    
1.30
 %†   
1.17
%
  
1.07
%
  
1.05
%
  
0.85
%
  
0.84
 %† 
Ratio of net investment loss to average net assets
    
(0.85
 )%†   
(0.71
)%
  
(0.58
)%
  
(0.72
)%
  
(0.55
)%
  
(0.66
 )%† 
Portfolio turnover rate
    
79.00
%
  
213.08
%
  
140.59
%
  
129.07
%
  
215.16
%
  
230.42
 %†† 
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                
1.21
%
  
1.06
%
  
0.94
%
      
Ratio of net investment loss to average net assets
                
(0.72
)%
  
(0.73
)%
  
(0.63
)%
      
 
Cash Management Portfolio
 
CLASS 1
                          
       
 Year Ended December 31,
Per Share Data:
  
Six
Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
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
    
0.009
    
0.006
    
0.004
    
0.010
    
0.038
    
0.062
  
Total from Investment Operations
    
0.009
    
0.006
    
0.004
    
0.010
    
0.038
    
0.062
  
Less Distributions:
                                      
Dividends from net investment income
    
(0.009
)
  
(0.006
)
  
(0.004
)
  
(0.010
)
  
(0.038
)
  
(0.062
)
Total Distributions
    
(0.009
)
  
(0.006
)
  
(0.004
)
  
(0.010
)
  
(0.038
)
  
(0.062
)
Net Asset Value, End of Period
 
$
1.000
 
$
1.000
  
$
1.000
  
$
1.000
  
$
1.000
  
$
1.000
  
Total Return
    
0.94
%
  
0.62
%
  
0.38
%
  
1.00
%
  
3.88
%
  
6.38
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
$
19,242
 
$
1,828
  
$
4,034
  
$
7,870
  
$
12,211
  
$
12,318
  
Ratio of expenses to average net assets
    
0.70
 %†   
0.70
%
  
0.70
%
  
0.69
%
  
0.07
%
  
—
  
Ratio of net investment income to average net assets
    
2.15
 %†   
0.56
%
  
0.39
%
  
0.98
%
  
3.82
%
  
6.17
%
Without management fee waiver and/or expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
0.85
 %†   
1.14
%
  
0.83
%
        
0.72
%
  
0.72
%
Ratio of net investment income to average net assets
    
2.00
 %†   
0.12
%
  
0.26
%
        
3.17
%
  
5.45
%
____________
*
Commencement of offering of shares.
†
Annualized.
††
For the year ended December 31, 2000.
ø
The Manager, at its discretion, waived management fees and/or reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

45

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Common Stock Portfolio

CLASS 1
       
 Year Ended December 31,
Per Share Data:
 Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
      
$
10.84
  
$
9.72
  
$
7.80
  
$
10.84
  
$
14.23
  
$
16.61
  
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.05
    
0.13
    
0.08
    
0.08
    
0.08
    
0.12
  
Net realized and unrealized gain (loss) on investments
    
(0.23
)
 
1.10
    
1.97
    
(3.02
)
  
(1.85
)
  
(1.86
)
Total from Investment Operations
    
(0.18
)
  
1.23
    
2.05
    
(2.94
)
  
(1.77
)
  
(1.74
)
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.11
)
  
(0.13
)
  
(0.10
)
  
(0.15
)
  
(0.01
)
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(1.47
)
  
(0.63
)
Total Distributions
    
—
    
(0.11
)
  
(0.13
)
  
(0.10
)
  
(1.62
)
  
(0.64
)
Net Asset Value, End of Period
 
$
10.66
 
$
10.84
 
$
9.72
 
$
7.80
 
$
10.84
 
$
14.23
  
Total Return
    
(1.66
)%
  
2.65
%
  
26.30
%
  
(27.16
)%
  
(12.24
)%
  
(10.53
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
 
$
9,355
 
$
10,792
 
$
12,297
 
$
12,931
 
$
23,756
 
$
32,738
  
Ratio of expenses to average net assets
    
0.82
 %†   
0.69
%
  
0.73
%
  
0.60
%
  
0.59
%
  
0.60
%
Ratio of net investment income to average net assets
    
1.02
 %†   
1.30
%
  
0.92
%
  
0.88
%
  
0.59
%
  
0.71
%
Portfolio turnover rate
    
34.73
%
  
42.68
%
  
127.26
%
  
131.95
%
  
64.45
%
  
52.01
%
 
____________
†
Annualized.
See Notes to Financial Statements.

46

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Communications and Information Portfolio


CLASS 1
       
 Year Ended December 31,
Per Share Data:
  Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
  
$
12.92
  
$
11.62
  
$
8.05
  
$
12.59
  
$
14.82
  
$
26.70
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.05
)
  
(0.02
)
  
(0.07
)
  
(0.07
)
  
(0.07
)
  
(0.11
)
Net realized and unrealized gain (loss) on investments and foreign currency transactions
    
(0.40
)
  
1.32
    
3.64
    
(4.47
)
  
0.80
    
(9.45
)
Total from Investment Operations
    
(0.45
)
 
1.30
    
3.57
    
(4.54
)
  
0.73
    
(9.56
)
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(2.96
)
 
(2.32
)
Total Distributions
    
—
    
—
    
—
    
—
    
(2.96
)
  
(2.32
)
Net Asset Value, End of Period
  
$
12.47
  
$
12.92
  
$
11.62
  
$
8.05
  
$
12.59
  
$
14.82
  
Total Return
    
(3.48
)%
  
11.19
%
  
44.35
%
  
(36.06
)%
  
5.34
%
  
(36.19
)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
  
$
47,994
  
$
58,646
  
$
62,903
  
$
53,769
  
$
113,424
  
$
127,901
  
Ratio of expenses to average net assets
    
1.10
 %†   
1.00
%
  
1.01
%
  
0.98
%
  
0.93
%
  
0.87
%
Ratio of net investment loss to average net assets
    
(0.82
 )%†   
(0.15
)%
  
(0.78
)%
  
(0.76
)%
  
(0.45
)%
  
(0.48
)%
Portfolio turnover rate
    
57.71
%
  
127.69
%
  
105.53
%
  
91.37
%
  
130.94
%
  
104.41
%
 
CLASS 2
     
 Year Ended December 31,
      
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
5/1/00*
to
12/31/00
  
Net Asset Value, Beginning of Period
    
$
12.76
  
$
11.51
  
$
7.99
  
$
12.53
  
$
14.80
  
$
30.61
       
Income (Loss) from Investment Operations:
Net investment loss
    
(0.06
)
  
(0.05
)
  
(0.10
)
  
(0.10
)
  
(0.11
)
  
(0.08
)
Net realized and unrealized gain (loss) on investments and foreign currency transactions
    
(0.41
)
  
1.30
    
3.62
    
(4.44
)
  
0.80
    
(13.41
)
Total from Investment Operations
    
(0.47
)
  
1.25
    
3.52
    
(4.54
)
  
0.69
    
(13.49
)
Less Distributions:
Distribution from net realized capital gain
    
—
    
—
    
—
    
—
    
(2.96
)
  
(2.32
)
Total Distributions
    
—
    
—
    
—
    
—
    
(2.96
)
  
(2.32
)
Net Asset Value, End of Period
     
$
12.29
  
$
12.76
  
$
11.51
  
$
7.99
  
$
12.53
  
$
14.80
       
Total Return
    
(3.68
)%
  
10.86
%
  
44.06
%
  
(36.23
)%
  
5.08
%
  
(44.40
)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
11,083
 
$
12,243
 
$
11,280
 
$
7,544
 
$
16,537
 
$
7,822
 
Ratio of expenses to average net assets
    
1.35
 %†  
1.25
%
  
1.26
%
  
1.23
%
  
1.18
%
  
1.12
 %†
Ratio of net investment loss to average net assets
    
(1.07
 )%†  
(0.40
)%
  
(1.03
)%
  
(1.01
)%
  
(0.70
)%
  
(0.61
 )%†
Portfolio turnover rate
    
57.71
%
  
127.69
%
  
105.53
%
  
91.37
%
  
130.94
%
  
104.41
 %††
 ____________
*
Commencement of offering of shares.
†
Annualized.
††
For the year ended December 31, 2000.
See Notes to Financial Statements.

47

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Global Technology Portfolio

CLASS 1
       
 Year Ended December 31,
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
 
$
12.54
 
$
12.06
 
$
8.86
 
$
12.96
 
$
20.14
 
$
27.42
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.09
)
  
(0.13
)
  
(0.11
)
  
(0.11
)
  
(0.14
)
  
(0.13
)
Net realized and unrealized gain (loss) on investments
    
(0.37
)
  
0.51
    
2.98
    
(4.32
)
  
(4.06
)
  
(6.34
)
Net realized and unrealized gain (loss) on foreign currency transactions
    
(0.12
)
  
0.10
    
0.33
    
0.33
    
(0.25
)
  
(0.01
)
Total from Investment Operations
    
(0.58
)
  
0.48
    
3.20
    
(4.10
)
  
(4.45
)
  
(6.48
)
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(2.73
)
  
(0.80
)
Total Distributions
    
—
    
—
    
—
    
—
    
(2.73
)
  
(0.80
)
Net Asset Value, End of Period
 
$
11.96
 
$
12.54
 
$
12.06
 
$
8.86
 
$
12.96
 
$
20.14
 
Total Return
    
(4.63
)%
  
3.98
%
  
36.12
%
  
(31.64
)%
  
(22.05
)%
  
(23.75
)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
6,467
 
$
8,446
 
$
10,047
 
$
9,361
 
$
18,533
 
$
25,370
 
Ratio of expenses to average net assets
    
1.90
 %†   
1.90
%
  
1.61
%
  
1.40
%
  
1.40
%
  
1.30
%
Ratio of net investment loss to average net assets
    
(1.49
 )%†   
(1.10
)%
  
(1.14
)%
  
(1.06
)%
  
(0.87
)%
  
(0.46
)%
Portfolio turnover rate
    
70.76
%
  
146.96
%
  
188.00
%
  
144.18
%
  
160.75
%
  
142.42
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
2.46
 %†  
2.39
%
  
2.39
%
  
1.80
%
  
1.61
%
      
Ratio of net investment loss to average net assets
    
(2.05
 )%†   
(1.59
)%
  
(1.92
)%
  
(1.46
)%
  
(1.08
)%
      

CLASS 2
     
 Year Ended December 31,
      
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
5/1/00*
to
12/31/00
  
Net Asset Value, Beginning of Period
 
$
12.46
 
$
12.00
 
$
8.82
 
$
12.93
 
$
20.14
 
$
30.96
 
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.10
)
  
(0.15
)
  
(0.13
)
  
(0.13
)
  
(0.17
)
  
(0.12
)
Net realized and unrealized gain (loss) on investments
    
(0.37
)
  
0.51
    
2.98
    
(4.31
)
  
(4.06
)
  
(10.01
)
Net realized and unrealized gain (loss) on foreign currency transactions
    
(0.12
)
 
0.10
    
0.33
    
0.33
    
(0.25
)
  
0.11
  
Total from Investment Operations
    
(0.59
)
  
0.46
    
3.18
    
(4.11
)
  
(4.48
)
  
(10.02
)
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(2.73
)
  
(0.80
)
Total Distributions
    
—
    
—
    
—
    
—
    
(2.73
)
  
(0.80
)
Net Asset Value, End of Period
  
$
11.87
 
$
12.46
 
$
12.00
 
$
8.82
 
$
12.93
 
$
20.14
  
Total Return
    
(4.73
)%
  
3.83
%
  
36.05
%
  
(31.79
)%
  
(22.20
)%
  
(25.99
)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
1,764
 
$
2,210
 
$
2,470
 
$
1,598
 
$
3,219
 
$
3,400
  
Ratio of expenses to average net assets
    
2.05
 %†   
2.05
%
  
1.76
%
  
1.55
%
  
1.54
%
  
1.55
 %† 
Ratio of net investment loss to average net assets
    
(1.64
 )%†   
(1.25
)%
  
(1.29
)%
  
(1.21
)%
  
(1.02
)%
  
(0.84
 )%† 
Portfolio turnover rate
    
70.76
%
  
146.96
%
  
188.00
%
  
144.18
%
  
160.75
%
  
142.42
 %†† 
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
2.61
 %†   
2.54
%
  
2.54
%
  
1.95
%
  
1.75
%
      
Ratio of net investment loss to average net assets
    
(2.20
 )%†   
(1.74
)%
  
(2.07
)%
  
(1.61
)%
  
(1.23
)%
      
____________
*
Commencement of offering of shares.
†
Annualized.
††
For the year ended December 31, 2000.
ø
The Manager, at its discretion, reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

48

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

International Growth Portfolio

CLASS 1
       
 Year Ended December 31,
Per Share Data:
   
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
 
$
11.10
 
$
8.97
 
$
6.72
 
$
8.05
 
$
10.65
 
$
16.63
 
Income (Loss) from Investment Operations:
                                      
Net investment income (loss)
    
0.03
    
(0.04
)
  
0.05
    
0.04
    
0.03
    
(0.08
)
Net realized and unrealized gain (loss) on investments
    
(0.21
)
  
1.79
    
1.41
    
(2.13
)
  
(2.43
)
  
(4.45
)
Net realized and unrealized gain (loss)
                                      
on foreign currency transactions
    
(0.69
)
  
0.42
    
0.79
    
0.76
    
(0.20
)
  
(0.88
)
Total from Investment Operations
    
(0.87
)
 
2.17
    
2.25
    
(1.33
)
  
(2.60
)
  
(5.41
)
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.04
)
  
—
    
—
    
—
    
(0.14
)
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(0.43
)
Total Distributions
    
—
    
(0.04
)
  
—
    
—
    
—
    
(0.57
)
Net Asset Value, End of Period
 
$
10.23
 
$
11.10
 
$
8.97
 
$
6.72
 
$
8.05
 
$
10.65
 
Total Return
    
(7.84
)%
  
24.19
%
  
33.48
%
  
(16.52
)%
  
(24.41
)%
  
(32.47
)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
3,445
 
$
3,749
 
$
3,490
 
$
3,315
 
$
4,793
 
$
7,150
 
Ratio of expenses to average net assets
    
2.00
 %†  
2.00
%
  
1.64
%
  
1.40
%
  
1.40
%
  
1.40
%
Ratio of net investment income (loss) to average net assets
    
0.59
 %†  
(0.40
)%
  
0.67
%
  
0.49
%
  
0.34
%
  
(0.57
)%
Portfolio turnover rate
    
101.46
%
  
213.83
%
  
285.08
%
  
183.86
%
  
199.09
%
  
275.32
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
5.60
 %†   
4.08
%
  
3.45
%
  
1.96
%
  
1.80
%
  
2.03
%
Ratio of net investment loss to average net assets
    
(3.01
 )%†   
(2.48
)%
  
(1.14
)%
  
(0.07
)%
  
(0.06
)%
  
(1.20
)%

___________
†
Annualized.
ø
The Manager, at its discretion, reimbursed expenses for the periods presented.
See Notes to Financial Statements.

49

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Investment Grade Fixed Income Portfolio
 
CLASS 1
       
 Year Ended December 31,
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
 
$
9.27
 
$
10.85
 
$
10.80
 
$
10.25
 
$
10.22
 
$
9.27
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.16
    
0.34
    
0.34
    
0.42
    
0.57
    
0.60
  
Net realized and unrealized gain (loss) on investments
    
0.01
    
(0.07
)
  
0.17
    
0.58
    
(0.01
)
  
0.35
  
Total from Investment Operations
    
0.17
    
0.27
    
0.51
    
1.00
    
0.56
    
0.95
  
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.91
)
  
(0.46
)
  
(0.45
)
  
(0.53
)
  
—
  
Distributions from net realized capital gain
    
—
    
(0.94
)
 
—
    
—
    
—
    
—
  
Total Distributions
    
—
    
(1.85
)
  
(0.46
)
  
(0.45
)
  
(0.53
)
  
—
  
Net Asset Value, End of Period
 
$
9.44
 
$
9.27
 
$
10.85
 
$
10.80
 
$
10.25
 
$
10.22
 
Total Return
    
1.83
%
  
2.41
%
  
4.72
%
  
9.83
%
  
5.52
%
  
10.25
%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
3,565
 
$
3,561
 
$
6,025
 
$
9,067
 
$
7,103
 
$
6,483
 
Ratio of expenses to average net assets
    
0.85
 %†   
0.85
%
  
0.85
%
  
0.82
%
  
0.63
%
  
0.60
%
Ratio of net investment income to average net assets
    
3.45
 %†   
3.13
%
  
3.08
%
  
3.94
%
  
5.35
%
  
6.23
%
Portfolio turnover rate
    
117.36
%
  
184.46
%
  
445.98
%
  
291.98
%
  
146.08
%
  
63.07
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
1.51
 %†   
1.11
%
  
0.91
%
        
0.76
%
  
0.84
%
Ratio of net investment income to average net assets
    
2.79
 %†   
2.87
%
  
3.02
%
        
5.22
%
  
5.99
%
____________
†
Annualized.
ø
The Manager, at its discretion, reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

50

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Large-Cap Value Portfolio
 
CLASS 1
       
Year Ended December 31,
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
 
$
10.65
 
$
9.27
 
$
7.02
 
 
10.46
 
$
11.59
 
$
9.28
 
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.03
    
0.09
    
0.11
    
0.10
    
0.09
    
0.14
  
Net realized and unrealized gain (loss) on investments
    
0.24
    
1.41
    
2.27
    
(3.43
)
 
(1.06
)
  
2.25
  
Total from Investment Operations
    
0.27
    
1.50
    
2.38
    
(3.33
)
  
(0.97
)
  
2.39
  
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.12
)
  
(0.13
)
  
(0.11
)
  
(0.11
)
  
0.00
 * 
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
(0.05
)
  
(0.08
)
Total Distributions
    
—
    
(0.12
)
  
(0.13
)
  
(0.11
)
  
(0.16
)
  
(0.08
)
Net Asset Value, End of Period
 
$
10.92
 
$
10.65
 
$
9.27
 
 
7.02
 
$
10.46
 
$
11.59
 
Total Return
    
2.54
%
  
16.25
%
  
33.91
%
  
(31.90
)%
  
(8.28
)%
  
25.84
%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
 
$
5,495
 
$
5,342
 
$
5,456
 
$
4,692
 
$
7,708
 
$
6,057
 
Ratio of expenses to average net assets
    
1.37
 %†   
1.26
%
  
1.18
%
  
1.16
%
  
0.83
%
  
0.80
%
Ratio of net investment income to average net assets
    
0.61
 %†   
0.89
%
  
1.34
%
  
1.12
%
  
1.13
%
  
1.51
%
Portfolio turnover rate
    
12.49
%
  
15.09
%
  
16.60
%
  
21.83
%
  
28.17
%
  
42.29
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                
1.29
%
        
1.10
%
  
1.22
%
Ratio of net investment income to average net assets
                
1.23
%
        
0.86
%
  
1.09
%
____________
*
During 2000, a dividend of $0.002 per share was paid.
†
Annualized.
ø
The Manager, at its discretion, reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

51

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Smaller-Cap Value Portfolio
 
CLASS 1
       
 Year Ended December 31,
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
2001
  
2000
  
Net Asset Value, Beginning of Period
  
$
19.40
  
$
16.20
  
$
10.87
  
$
13.04
  
$
10.58
  
$
8.08
  
Income (Loss) from Investment Operations:
                                      
Net investment income (loss)
    
(0.01
)
  
0.08
    
(0.05
)
  
(0.06
)
  
(0.03
)
  
(0.01
)
Net realized and unrealized gain (loss) on investments
    
(1.52
)
  
3.15
    
5.48
    
(1.94
)
  
2.52
    
2.66
  
Total from Investment Operations
    
(1.53
)
  
3.23
    
5.43
    
(2.00
)
  
2.49
    
2.65
  
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
  
(0.15
)
Total Distributions
    
—
    
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
 
(0.15
)
Net Asset Value, End of Period
  
$
17.87
  
$
19.40
  
$
16.20
  
$
10.87
  
$
13.04
  
$
10.58
  
Total Return
    
(7.89
)%
  
19.95
%
  
49.94
%
  
(15.37
)%
  
23.52
%
  
33.00
%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
  
$
224,562
  
$
268,410
  
$
214,525
  
$
103,770
  
$
100,090
  
$
16,495
  
Ratio of expenses to average net assets
    
1.15
 %†   
1.14
%
  
1.16
%
  
1.18
%
  
1.19
%
  
1.00
%
Ratio of net investment income (loss) to average net assets
    
(0.13
 )%†   
0.47
%
  
(0.42
)%
  
(0.51
)%
  
(0.29
)%
  
(0.22
)%
Portfolio turnover rate
    
15.57
%
  
45.24
%
  
18.31
%
  
56.74
%
  
29.99
%
  
42.27
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                            
1.22
%
  
1.45
%
Ratio of net investment loss to average net assets
                            
(0.32
)%
  
(0.67
)%

CLASS 2
       
Year Ended December 31,
    
Per Share Data:
  
Six Months
Ended
June 30, 2005
2004
  
2003
  
2002
  
5/1/01* to 12/31/01
  
Net Asset Value, Beginning of Period
  
$
19.26
  
$
16.13
  
$
10.85
  
$
13.04
  
$
10.78
  
Income (Loss) from Investment Operations:
                                
Net investment income (loss)
    
(0.03
)
  
0.05
    
(0.08
)
  
(0.08
)
  
(0.03
)
Net realized and unrealized gain (loss) on investments
    
(1.51
)
  
3.11
    
5.46
    
(1.94
)
  
2.32
  
Total from Investment Operations
    
(1.54
)
 
3.16
    
5.38
    
(2.02
)
  
2.29
  
Less Distributions:
                                
Distributions from net realized capital gain
    
—
    
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Total Distributions
    
—
    
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Net Asset Value, End of Period
  
$
17.72
  
$
19.26
  
$
16.13
  
$
10.85
  
$
13.04
  
Total Return
    
(8.00
)%
  
19.60
%
  
49.57
%
  
(15.52
)%
  
21.23
%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)
  
$
34,560
  
$
34,582
  
$
19,978
  
$
8,554
  
$
5,178
  
Ratio of expenses to average net assets
    
1.34
 %†   
1.33
%
  
1.35
%
  
1.37
%
  
1.39
 %† 
Ratio of net investment income (loss)
to average net assets
    
(0.32
 )%†   
0.28
%
  
(0.61
)%
  
(0.70
)%
  
(0.46
 )%† 
Portfolio turnover rate
    
15.57
%
  
45.24
%
  
18.31
%
  
56.74
%
  
29.99
 %†† 
Without expense reimbursement:ø
                                
Ratio of expenses to average net assets
                            
1.41
 %† 
Ratio of net investment loss to average net assets
                            
(0.48
 )%† 
____________
*
Commencement of offering of shares.
†
Annualized.
††
For the year ended December 31, 2001.
Ø
The Manager, at its discretion, reimbursed expenses for certain periods presented.
See Notes to Financial Statements.

52

Seligman Portfolios, Inc.
Board of Directors


Robert B. Catell 2, 3 
  
Leroy C. Richie 1, 3
•
Chairman, Chief Executive Officer and Director,
  
•
Chairman and Chief Executive Officer,
 
KeySpan Corporation
    
Q Standards Worldwide, Inc.
     
• 
Director, Kerr-McGee Corporation
John R. Galvin 1, 3
      
•
Dean Emeritus, Fletcher School of Law and Diplomacy at
Robert L. Shafer 2, 3
 
Tufts University
  
•
Ambassador and Permanent Observer of the Sovereign
       
Military Order of Malta to the United Nations
Alice S. Ilchman 2, 3
      
•
President Emerita, Sarah Lawrence College
  
James N. Whitson 1, 3
•
Director, Jeannette K. Watson Summer Fellowship
  
•
Retired Executive Vice President and Chief
•
Trustee, Committee for Economic Development
    
Operating Officer, Sammons Enterprises, Inc.
     
•
Director, CommScope, Inc.
Frank A. McPherson 2, 3
      
•
Retired Chairman of the Board and Chief
  
Brian T. Zino
 
Executive Officer, Kerr-McGee Corporation
  
•
Director and President,
•
Director, ConocoPhillips
    
J. & W. Seligman & Co. Incorporated
•
Director, Integris Health
  
•
Chairman, Seligman Data Corp.
     
•
Director, ICI Mutual Insurance Company
Betsy S. Michel 1, 3
 
•
Member of the Board of Governors,
•
Trustee, The Geraldine R. Dodge Foundation
    
Investment Company Institute
       
William C. Morris
   _________ 
•
Chairman, J. & W. Seligman & Co. Incorporated
  
Member:
1 Audit Committee
•
Chairman, Carbo Ceramics Inc.
    
2 Director Nominating Committee
       
3 Board Operations Committee
 
Executive Officers

William C. Morris
  
Christopher J. Mahony
  
Marion S. Schultheis
Chairman
  
Vice President
  
Vice President
         
Brian T. Zino
  
Michael F. McGarry
  
Lawrence P. Vogel
President and Chief Executive Officer
  
Vice President
  
Vice President and Treasurer
         
John B. Cunningham
  
Richard M. Parower
  
Paul H. Wick
Vice President
  
Vice President
  
Vice President
         
Neil T. Eigen
  
Thomas G. Rose
  
Frank J. Nasta
Vice President
  
Vice President
  
Secretary
         
Eleanor T.M. Hoagland
  
Richard S. Rosen
    
Vice President and Chief Compliance Officer
  
Vice President
    
 

53


 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
Seligman Advisors, Inc.
an affiliate of
 
 
J. & W. SELIGMAN & CO.
INCORPORATED
Established 1864
100 Park Avenue, New York, NY 10017
 
  
 
 
 
    
 
This report is intended only for the information of shareholders or those who have received the offering
prospectus covering shares of Capital Stock of Selilgman Portfolios, Inc., which contains information about
the management fees and other costs.  Please read the prospectus carefully before investing or sending money.
 
 

SP3 6/05
 Printed on Recycled Paper
 
 
 

 
ITEM 2.
CODE OF ETHICS.
Not applicable.

ITEM 3.
AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.

ITEM 4.
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.

ITEM 5.
AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.

ITEM 6.
SCHEDULE OF INVESTMENTS.
Included in Item 1 above.

ITEM 7.
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.

ITEM 8.
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.

ITEM 9.
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.

ITEM 10.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
 
The Board of Directors of the Registrant has a adopted a Nominating Committee Charter which provides that the Nominating Committee (the “Committee”) may consider and evaluate nominee candidates properly submitted by shareholders if a vacancy among the Independent Directors of the Registrant occurs and if, based on the Board’s then current size, composition and structure, the Committee determines that the vacancy should be filled. The Committee will consider candidates submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources. A copy of the qualifications and procedures that must be met or followed by shareholders to properly submit a nominee candidate to the Committee may be obtained by submitting a request in writing to the Secretary of the Registrant. 

ITEM 11.
CONTROLS AND PROCEDURES.

(a)
The registrant's principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms and that such material information is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.

(b)
The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM12.
EXHIBITS.
 
(a)(1)
Not applicable.
(a)(2)
Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3)
Not applicable.
(b)
Certifications of chief executive officer and chief financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SELIGMAN PORTFOLIOS, INC.



By: /S/ BRIAN T. ZINO
Brian T. Zino
President and Chief Executive Officer


Date: September 7, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



By: /S/ BRIAN T. ZINO
Brian T. Zino
President and Chief Executive Officer

Date: September 7, 2005



By: /S/ LAWRENCE P. VOGEL
Lawrence P. Vogel
Vice President, Treasurer and Chief Financial Officer

Date: September 7, 2005



SELIGMAN PORTFOLIOS, INC.


EXHIBIT INDEX
 
(a)(2)
Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(b)
Certification of chief executive officer and chief financial officer as required Rule 30a-2(b) of the Investment Company Act of 1940.