N-CSR 1 body_26004.htm FORM N-CSR SELIGMAN PORTFOLIOS, INC. Form N-CSR 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: 6/30/06


FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS.


 
   
Seligman
Portfolios, Inc.
 
 
 
 
 
 
 
 
 
 
Mid-Year Report
June 30, 2006
 
 
   
 
 
 
 
 
 
 
 

Seligman Portfolios, Inc.
Dear Contract Owner:
 
We are pleased to present your mid-year report for Seligman Portfolios, Inc. for the six months ended June 30, 2006. Investment results, portfolios of investments, and financial statements for each of the Seligman Portfolios follow this letter.
 
Thank you for your continued support of Seligman Portfolios. We look forward to serving your investment needs for many years to come.
 

Respectfully,


William C. Morris
Chairman
J. & W. Seligman & Co. Incorporated

August 18, 2006
 

Manager
J. & W. Seligman & Co.
Incorporated
100 Park Avenue
New York, New York 10017
 
General Distributor
  
Subadviser
(to Seligman International
Growth Portfolio)
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
  
General Counsel
Sullivan & Cromwell LLP
 
Custodians
JPMorgan Chase Bank
State Street Bank and
Trust Company
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.1 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.1 Information for each new 12-month period ending June 30 will be available no later than August 31 of that year. Individual insurance contract owners may also contact participating insurance companies for more information. Plan participants may contact their plan administrator.

__________
1 These website references are inactive textual references and information contained in or otherwise accessible through these websites does not form a part of this report or the Seligman Portfolios’ prospectus or statement of additional information.



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 or indicate 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 lower or higher than the performance data quoted. Total returns of the Fund 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 accounts or by any pension or 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. For certain Portfolios, J. & W. Seligman & Co. Incorporated (the “Manager”) voluntarily reimbursed expenses. Such reimbursement can be discontinued at any time at the Manager’s discretion. Absent such reimbursement, returns would have been lower.

An investment in the 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 in 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.

An investment in a Portfolio is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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. See Note 4 to the Financial Statements on page 39 of this report for additional information.

Investment Results

Total Returns
For Periods Ended June 30, 2006
 
 
 
 
Average Annual Return 
    
Six
Months
 * 
One
Year
  
Five
Years
  
 Ten
 Years
  
Since
Inception
5/1/00
  
Since
Inception
8/30/00
  
                           
Seligman Capital Portfolio
                          
Class 1
    
(0.94
)%
  
8.25
%
  
(0.48
)%
  
  8.67
%
  
n/a
    
n/a
  
Class 2
    
(1.03
)
  
7.93
    
(0.72
)
  
n/a
    
n/a
    
(5.65)%
 
Lipper Mid-Cap Funds Average**
    
3.35
    
11.93
    
5.03
    
  8.42
    
n/a
    
  0.69#
Lipper Mid-Cap Growth Funds Average**
    
3.00
    
12.73
    
2.82
    
  7.20
    
n/a
    
(3.11)#
Russell Midcap Growth Index**
    
2.56
    
13.04
    
4.76
    
  8.46
    
n/a
    
 (3.33)
 
Seligman Common Stock Portfolio Class 1
    
1.38
    
5.19
    
(0.06
)
  
  4.42
    
n/a
    
n/a
  
Lipper Large-Cap Core Funds Average**
    
1.37
    
7.49
    
1.12
    
  6.63
    
n/a
    
n/a
  
Standard & Poor’s 500 Composite (S&P 500) Index**
    
2.71
    
8.62
    
2.49
    
  8.31
    
n/a
    
n/a
  
Seligman Communications and Information Portfolio
                                      
Class 1
    
4.67
    
16.92
    
1.57
    
10.50
    
n/a
    
n/a
  
Class 2
    
4.52
    
16.68
    
1.31
    
n/a
    
 (6.32)%
 
  
n/a
  
Goldman Sachs Technology Indexes (GSTI)**
    
(5.23
)
  
4.35
    
(4.65
)
  
n/a
    
(14.53)††
  
n/a
  
Lipper Science and Technology Funds Average**
    
(2.57
)
  
9.10
    
(4.43
)
  
  6.67
    
(14.40)††
  
n/a
  
S&P 500 Index**
    
2.71
    
8.62
    
2.49
    
  8.31
    
(0.72)
 
  
n/a
  
 
__________
____________
1
The website reference is an inactive textual reference and information contained in or otherwise accessible through the website does not form a part of this report or the Seligman Portfolios’ prospectus or statement of additional information.
See footnotes on page 2.


1


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Investment Results

Total Returns
For Periods Ended June 30, 2006 
   
Average Annual Return 
  
Six
Months*
One
Year
Five
Years
Ten
Years
Since
Inception
5/1/98
Since
Inception
5/1/00
Since
Inception
5/1/01
               
Seligman Global Technology Portfolio
              
Class 1
  1.62%
15.22%
(1.12)%
9.08%
n/a
n/a
n/a
Class 2
  1.56
15.08
 (1.26)
n/a
n/a
 (9.10)%
n/a
Lipper Global Funds Average**
  5.52
17.48
  5.79
 7.28
n/a
  1.49††
n/a
Lipper Science & Technology Funds Average**
 (2.57)
  9.10
 (4.43)
 6.67
n/a
(14.40)††
n/a
MSCI World Index**
  6.37
17.50
  6.21
 7.37
n/a
 2.39††
n/a
MSCI World IT Index**
 (3.96)
  6.82
(3.28)
 6.57
n/a
(14.37)††
n/a
Seligman International Growth Portfolio Class 1
  7.12
22.09
 7.26
 2.52
n/a
n/a
n/a
MSCI EAFE Index**
10.50
27.07
  10.44
 6.75
n/a
n/a
n/a
MSCI EAFE Growth Index**
  9.55
26.34
 8.45
 4.17
n/a
n/a
n/a
Lipper International Funds Average**
  8.91
26.34
 8.91
 6.97
n/a
n/a
n/a
Lipper International Multi-Cap Growth Funds Average**
  7.81
26.37
 8.06
 6.57
n/a
n/a
n/a
Seligman Investment Grade Fixed Income Portfolio Class 1
 (1.48)
 (2.33)
 3.79
 4.79
n/a
n/a
n/a
Lehman Brothers Government Bond Index**
 (0.89)
 (1.16)
 4.73
 6.04
n/a
n/a
n/a
Lehman Brothers Government/Credit Index**
 (1.15)
 (1.52)
 5.13
 6.25
n/a
n/a
n/a
Lipper Corporate Debt Funds BBB-Rated Average**
 (0.87)
 (0.99)
 5.44
 6.10
n/a
n/a
n/a
Seligman Large-Cap Value Portfolio Class 1
  3.51
11.68
 2.62
n/a
3.83%
n/a
n/a
Lipper Large-Cap Value Funds Average**
  4.55
10.30
 4.18
n/a
4.32†
n/a
n/a
Lipper Multi-Cap Value Funds Average**
  4.55
10.24
 6.08
n/a
5.41†
n/a
n/a
Russell 1000 Value Index**
  6.56
12.10
 6.89
n/a
5.99
n/a
n/a
S&P 500 Index**
  2.71
 8.62
 2.49
n/a
3.13
n/a
n/a
Seligman Smaller-Cap Value Portfolio
              
Class 1
  7.20
11.75
  11.58
n/a
13.87
n/a
n/a
Class 2
  7.05
11.55
  11.35
n/a
n/a
n/a
13.00%
Lipper Small-Cap Core Funds Average**
  6.90
13.89
 9.72
n/a
7.99
n/a
10.56##
Lipper Small-Cap Value Funds Average**
  7.16
12.72
  12.10
n/a
9.11
n/a
13.13##
Russell 2000 Value Index**
10.44
14.61
  13.08
n/a
9.86
n/a
13.85
 

Note: Lipper currently classifies certain Seligman Portfolios as follows:
Seligman Capital Portfolio — Mid-cap growth fund
Seligman Global Technology Portfolio — Science and technology fund
Seligman International Growth Portfolio — International Multi-cap growth fund
Seligman Large-Cap Value Portfolio — Multi-cap value fund
Seligman Smaller-Cap Value Portfolio — Small-cap core fund

__________
*
Returns for periods of less than one year are not annualized.
**
See benchmark descriptions on pages 12 and 13.
†
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, 2006
             
Percent of
Net Assets
  
Issues
   
Cost
   
Value
   
June 30,
2006
   
Dec. 31,
2005†
Common Stocks:
                  
                   
Aerospace and Defense
2
  
$150,495
  
$166,302
  
1.4
  
1.4
Air Freight and Logistics
2
  
97,021
  
148,156
  
1.2
  
0.4
Airlines
1
  
100,298
  
104,768
  
0.9
  
1.0
Auto Components
—
  
—
  
—
  
—
  
2.3
Biotechnology
6
  
290,708
  
318,392
  
2.7
  
4.3
Capital Markets
4
  
470,533
  
494,658
  
4.1
  
3.1
Chemicals
3
  
298,875
  
282,394
  
2.4
  
1.7
Commercial Banks
2
  
116,706
  
115,211
  
1.0
  
0.8
Commercial Services and Supplies
4
  
817,682
  
840,198
  
7.0
  
5.3
Communications Equipment
2
  
118,626
  
132,255
  
1.1
  
0.6
Computers and Peripherals
3
  
183,924
  
178,463
  
1.5
  
3.4
Construction and Engineering
2
  
211,481
  
261,513
  
2.2
  
3.1
Containers and Packaging
2
  
264,586
  
262,260
  
2.2
  
1.3
Diversified Financial Services
2
  
94,592
  
158,136
  
1.3
  
1.6
Electrical Equipment
1
  
82,665
  
115,216
  
1.0
  
0.5
Electronic Equipment and Instruments
2
  
131,869
  
129,748
  
1.1
  
0.9
Energy Equipment and Services
4
  
450,922
  
546,482
  
4.6
  
2.6
Food and Staples Retailing
1
  
67,481
  
64,605
  
0.5
  
—
Food Products
5
  
452,556
  
468,372
  
3.9
  
3.2
Gas Utilities
1
  
40,769
  
36,850
  
0.3
  
0.3
Health Care Equipment and Supplies
10
  
582,835
  
544,508
  
4.5
  
3.8
Health Care Providers and Services
6
  
433,424
  
447,718
  
3.7
  
4.5
Health Care Technology
2
  
151,002
  
167,522
  
1.4
  
0.8
Hotels, Restaurants and Leisure
3
  
350,522
  
390,085
  
3.3
  
5.7
Household Durables
1
  
63,246
  
56,808
  
0.5
  
—
Independent Power Producers and Energy Traders
1
  
99,818
  
114,390
  
1.0
  
0.6

 
             
Percent of
Net Assets
 
Issues
  
Cost
  
Value
  
June 30,
2006
  
Dec. 31,
2005†
                   
Insurance
—
  
—
  
—
  
—
  
2.3
Internet and Catalog Retail
—
  
—
  
—
  
—
  
0.7
Internet Software and Services
1
  
$       56,373
  
$       75,060
  
0.6
  
0.9
IT Services
5
  
591,049
  
622,367
  
5.2
  
5.0
Life Sciences Tools and Services
3
  
219,841
  
208,244
  
1.7
  
—
Machinery
3
  
196,628
  
181,188
  
1.5
  
0.5
Media
3
  
181,285
  
179,564
  
1.5
  
0.5
Metals and Mining
2
  
118,689
  
127,434
  
1.1
  
1.0
Multiline Retail
1
  
183,584
  
178,339
  
1.5
  
1.5
Office Electronics
1
  
54,718
  
47,768
  
0.4
  
—
Oil, Gas and Consumable Fuels
6
  
572,157
  
645,601
  
5.4
  
5.2
Personal Products
2
  
333,769
  
383,284
  
3.2
  
2.7
Pharmaceuticals
5
  
424,523
  
461,654
  
3.9
  
4.6
Road and Rail
1
  
96,328
  
98,616
  
0.8
  
—
Semiconductors and Semiconductor Equipment
9
  
543,018
  
487,006
  
4.1
  
4.6
Software
7
  
584,906
  
509,778
  
4.3
  
4.8
Specialty Retail
5
  
514,452
  
505,059
  
4.2
  
7.7
Textiles, Apparel and Luxury Goods
   —
  
—
  
—
  
—
  
0.3
Thrifts and Mortgage Finance
1
  
70,145
  
74,620
  
0.6
  
—
Wireless Telecommunication Services
2
  
107,269
  
123,507
  
1.0
  
1.3
 
  129
  
10,971,370
  
11,454,099
  
95.8
  
96.8
Short-Term Holding and Other Assets Less Liabilities
1
  
498,988
  
498,988
  
4.2
  
3.2
Net Assets 
  130 
  
$11,470,358
   $11,953,087  
   100.0
  
   100.0
 
__________
† Restated to conform to current period’s classification.

Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
    
Largest Sales
  
Limited Brands*
Pharmaceutical Product
  
Jacobs Engineering Group
Abercrombie & Fitch (Class A)**
Amdocs*
Development*
  
Broadcom (Class A)**
Electronics for Imaging**
International Flavors &
Tyson Foods (Class A)*
  
Euronet Worldwide
Business Objects (ADR)**
Fragrances*
Manor Care*
  
Outback Steakhouse**
Hilton Hotels**
Pactiv*
CSX*
  
BorgWarner**
Chattem**
Pride International*
Research In Motion*
      

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, 2006
         
Percent of Net Assets
  
 
Issues
  
Value
  
June 30, 2006
  
Dec. 31, 2005
  
Short-Term Holdings:
                
US Government Securities
2
  
$ 1,696,579
  
12.9
  
11.9
  
US Government Agency Securities
3
  
2,993,686
  
22.7
  
19.7
  
Fixed Time Deposits
6
  
3,932,000
  
29.9
  
39.9
  
Repurchase Agreement
1
  
2,579,000
  
19.6
  
18.8
  
Commercial Paper
3
  
1,981,863
  
15.1
  
15.2
  
 
15
  
13,183,128
  
100.2
  
105.5
  
Other Assets Less Liabilities
—
  
(24,200
 ) 
(0.2
 ) 
(5.5
 ) 
Net Assets
15
  
$13,158,928
  
100.0
  
100.0
  


4


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Common Stock Portfolio
Diversification of Net Assets
June 30, 2006
 

             
Percent of
Net Assets 
 
Issues 
  
Cost 
  
Value 
  
June 30, 2006 
  
Dec. 31, 2005 
Common Stocks and Warrants: 
                  
Aerospace and Defense
4
  
$    151,305
  
$    172,269
  
2.4
  
1.5
Air Freight and Logistics
—
  
—
  
—
  
—
  
0.5
Beverages
3
  
103,132
  
107,548
  
1.5
  
2.0
Biotechnology
2
  
182,770
  
141,914
  
2.0
  
1.7
Building Products
1
  
11,116
  
11,856
  
0.2
  
0.4
Capital Markets
5
  
225,856
  
246,344
  
3.4
  
2.6
Chemicals
3
  
168,873
  
176,368
  
2.4
  
2.4
Commercial Banks
1
  
76,518
  
83,283
  
1.1
  
3.3
Commercial Services and Supplies
2
  
108,406
  
96,483
  
1.3
  
1.8
Communications Equipment
7
  
420,582
  
433,918
  
6.0
  
6.0
Computers and Peripherals
5
  
378,564
  
358,239
  
4.9
  
4.0
Containers and Packaging
1
  
126,080
  
102,789
  
1.4
  
1.2
Diversified Consumer Services
—
  
—
  
—
  
—
  
0.5
Diversified Financial Services
4
  
490,630
  
541,954
  
7.5
  
5.3
Diversified Telecommunication Services
4
  
149,901
  
161,879
  
2.2
  
2.5
Electronic Equipment and Instruments
1
  
38,568
  
35,607
  
0.5
  
—
Energy Equipment and Services
2
  
75,342
  
83,886
  
1.2
  
—
Food and Staples Retailing
2
  
184,349
  
186,751
  
2.6
  
3.7
Food Products
1
  
31,837
  
33,042
  
0.4
  
0.3
Health Care Equipment and Supplies
3
  
191,149
  
151,340
  
2.1
  
1.3
Health Care Providers and Services
3
  
225,008
  
204,239
  
2.8
  
1.4
Hotels, Restaurants and Leisure
1
  
62,341
  
60,480
  
0.8
  
1.1
                   
 

             
Percent of
Net Assets 
   
Issues 
   
Cost 
   
Value 
   
June 30,
2006 
   
Dec. 31, 2005 
Household Products
1
  
$    78,828
  
$ 77,840
  
1.1
  
0.5
Industrial Conglomerates
2
  
266,391
  
279,988
  
3.9
  
5.0
Insurance
5
  
255,244
  
247,038
  
3.4
  
3.2
Internet Software and Services
3
  
108,371
  
108,007
  
1.5
  
2.3
IT Services
—
  
—
  
—
  
—
  
0.8
Machinery
1
  
45,098
  
65,550
  
0.9
  
1.5
Media
6
  
331,479
  
347,115
  
4.8
  
5.3
Metals and Mining
2
  
102,035
  
102,576
  
1.4
  
0.6
Multi-Utilities
1
  
47,222
  
44,874
  
0.6
  
0.4
Multiline Retail
1
  
92,123
  
65,706
  
0.9
  
1.6
Oil, Gas and Consumable Fuels
5
  
514,558
  
573,955
  
7.9
  
4.9
Personal Products
—
  
—
  
—
  
—
  
0.4
Pharmaceuticals
6
  
485,318
  
440,594
  
6.1
  
 10.3
Semiconductors and Semiconductor Equipment
3
  
126,988
  
117,620
  
1.6
  
2.3
Software
5
  
522,152
  
401,744
  
5.5
 
4.4
Specialty Retail
3
  
163,106
  
149,834
  
2.1
 
1.9
Thrifts and Mortgage Finance
2
  
102,512
  
91,926
  
1.3
 
1.3
Tobacco
2
  
143,913
  
217,298
  
3.0
 
3.2
Wireless Telecommunication Services
2
  
152,989
  
173,752
  
2.4
 
2.5
 
  105
  
6,940,654
  
6,895,606
  
 95.1
  
  95.9
Options Purchased
 23
  
314,976
  
261,960
  
3.6
 
1.9
US Government Securities
—
  
—
  
—
  
—
 
0.4
Short-Term Holdings and Other Assets Less Liabilities
2
   
94,374
  
93,679
   
1.3
  
1.8
Net Assets
 130
 
$7,350,004
 
$7,251,245
 
100.0 
  
100.0 


Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
    
Largest Sales
  
Cogent*
Aetna*
  
Albertson’s**
Google (Class A)
Sunoco*
Freeport-McMoRan Copper &
  
BellSouth
Johnson & Johnson
Abercrombie & Fitch (Class A)*
Gold (Class B)*
  
Nokia (ADR)
Tyco International
Hewlett-Packard*
AT&T*
  
Andrx**
Amdocs**
UnitedHealth Group*
Murphy Oil*
  
Microsoft
International Business Machines
QUALCOMM
        

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 Communications and Information Portfolio
Diversification of Net Assets
June 30, 2006

             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30,
2006
   
December 31,
2005†
Common Stocks:
                  
Application Software
4
  
$  6,034,569
  
$  5,810,379
  
  10.6
  
11.8
Broadcasting and Cable TV
—
  
—
  
—
  
 —
  
0.9
Communications Equipment
7
  
4,772,804
  
5,148,239
  
 9.4
  
7.6
Computer Hardware
2
  
883,177
  
809,184
  
 1.5
  
4.0
Computer Storage and Peripherals
5
  
4,952,511
  
4,878,165
  
 8.9
  
7.3
Consumer Software
—
  
—
  
—
  
 —
  
1.0
Data Processing and Outsourced Services
1
  
560,690
  
553,992
  
 1.0
  
0.5
Electronic Equipment Manufacturers
2
  
1,392,713
  
1,508,094
  
 2.8
  
3.1
Electronic Manufacturing Services
—
  
—
  
—
  
 —
  
0.6
Health Care Equipment
2
  
891,968
  
837,979
  
 1.6
  
4.4
Integrated Telecommunication Services
—
  
—
  
—
  
 —
  
0.6
Internet Retail
—
  
—
  
—
  
 —
  
1.9
Internet Software and Services
4
  
10,732,755
  
9,045,517
  
  16.6
  
13.3
IT Consulting and Other Services
1
  
1,561,259
  
2,269,200
  
 4.2
  
6.0
Life Sciences Tools and Services
2
  
784,651
  
766,154
  
 1.4
  
0.6
Semiconductor Equipment
5
  
5,247,103
  
5,103,424
  
 9.3
  
7.7
Semiconductors
15
  
9,133,626
  
8,750,420
  
  16.0
  
10.3
Systems Software
3
  
2,088,138
  
2,180,439
  
 4.0
  
8.7
Technical Software
2
  
4,059,735
  
3,561,260
  
 6.5
  
7.4
Wireless Telecommunication Services
3
  
1,600,092
  
1,532,960
  
 2.8
  
0.9
 
58
  
54,695,791
  
52,755,406
  
  96.6
  
98.6
Option Purchased
1
  
91,057
  
68,850
  
 0.1
  
—
Other Assets Less Liabilities
—
  
1,820,691
  
1,820,002
  
 3.3
  
1.4
Net Assets
59
  
$56,607,539
  
$54,644,258
  
   100.0
  
       100.0
† Restated to conform to current period’s classification.


Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
  
Largest Sales
VeriSign*
 
MEMC Electronic Materials**
KLA-Tencor*
 
Microsoft**
Autodesk*
 
CA**
McAfee
 
Amdocs
Cymer
  
Fisher Scientific International**
Marvell Technology Group*
 
Altera**
Mercury Interactive
 
Oracle
SanDisk*
 
Cognos**
Motorola*
 
Google (Class A)**
Texas Instruments*
  
THQ**
 
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.


6


Seligman Portfolios, Inc.
Performance and Portfolio Overview

Seligman Global Technology Portfolio
Diversification of Net Assets by Industry
June 30, 2006
             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30, 2006
   
Dec. 31, 2005†
Common Stocks:
                  
Application Software
5
  
$    745,015
  
$697,549
  
8.4
  
10.2
Casinos and Gaming
—
  
—
  
—
  
—
  
0.5
Communications Equipment
9
  
793,382
  
876,831
  
10.5
  
9.2
Computer Hardware
2
  
135,955
  
123,861
  
1.5
  
5.3
Computer Storage and Peripherals
5
  
665,474
  
636,950
  
7.6
  
7.0
Consumer Electronics
2
  
149,649
  
152,070
  
1.8
  
—
Consumer Software
—
  
—
  
—
  
—
  
2.3
Data Processing and Outsourced Services
1
  
82,638
  
81,072
  
1.0
  
0.5
Diversified Commercial and Professional
—
  
—
  
—
  
—
  
0.5
Electronic Equipment Manufacturers
5
  
432,934
  
469,681
  
5.6
  
5.0
Electronic Manufacturing Services
1
  
60,632
  
67,341
  
0.8
  
1.3
Health Care Equipment
—
  
—
  
—
  
—
  
2.6
Integrated Telecommunication Services
—
  
—
  
—
  
—
  
0.5
Internet Retail
1
  
50,325
  
50,771
  
0.6
  
1.8

             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30, 2006
   
Dec. 31, 2005†
                   
Internet Software and Services
5
  
$1,254,873
  
$1,081,382
  
12.9
  
8.9
IT Consulting and Other Services
7
  
478,250
  
559,929
  
6.7
  
8.0
Leisure Products
1
  
81,869
  
85,071
  
1.0
  
—
Life Sciences Tools and Services
1
  
55,778
  
52,912
  
0.6
  
0.5
Office Electronics
1
  
78,494
  
88,038
  
1.0
  
1.0
Semiconductor Equipment
4
  
440,618
  
457,050
  
5.5
  
7.3
Semiconductors
20
  
1,766,843
  
1,645,139
  
19.7
  
8.6
Specialty Chemicals
1
  
33,658
  
28,524
  
0.3
  
0.6
Specialty Finance
—
  
—
  
—
  
—
  
0.6
Systems Software
4
  
328,771
  
353,177
  
4.2
  
7.1
Technical Software
2
  
375,746
  
350,544
  
4.2
  
4.2
Wireless Telecommunication Services
2
  
150,896
  
139,077
  
1.7
  
1.3
 
79
  
8,161,800
  
7,996,969
  
95.6
  
94.8
Other Assets Less Liabilities
—
  
369,802
  
365,396
  
4.4
  
5.2
Net Assets
79
  
$8,531,602
  
$8,362,365
  
100.0
  
100.0
_____________
† Restated to conform to current period’s classification.

Largest Portfolio Changes
During the Six Months Ended June 30, 2006 
Largest Purchases
  
Largest Sales
VeriSign*
SanDisk*
  
MEMC Electronic Materials**
Oracle
McAfee
Broadcom (Class A)*
  
Microsoft**
Amdocs
KLA-Tencor*
Business Objects (ADR)*
  
CA**
International Business
Autodesk*
Marvell Technology Group*
  
Altera**
Machines**
HOYA*
Motorola*
  
Cognos**
THQ**
       
Kinetic Concepts**

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 International Growth Portfolio
Diversification of Net Assets by Industry
June 30, 2006

             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30, 2006
   
Dec. 31, 2005†
Common Stocks:
                  
Air Freight and Logistics
—
  
—
  
—
  
—
  
0.9
Airlines
3
  
$91,518
  
$    99,982
  
2.6
  
1.2
Automobiles
2
  
87,041
  
95,845
  
2.5
  
1.9
Biotechnology
—
  
—
  
—
  
—
  
2.0
Capital Markets
2
  
125,148
  
146,595
  
3.7
  
2.1
Chemicals
1
  
34,921
  
38,068
  
1.0
  
1.5
Commercial Banks
7
  
341,162
  
376,764
  
9.6
  
11.7
Communications Equipment
—
  
—
  
—
  
—
  
4.6
Computers and Peripherals
1
  
81,436
  
76,142
  
1.9
  
1.1
Construction and Engineering
1
  
22,067
  
38,979
  
1.0
  
0.9
Consumer Finance
1
  
21,171
  
19,018
  
0.5
  
—
Diversified Financial Services
1
  
75,090
  
84,611
  
2.2
  
1.0
Electrical Equipment
—
  
—
  
—
  
—
  
1.0
Electronic Equipment and Instruments
1
  
44,464
  
43,104
  
1.1
  
5.0
Energy Equipment and Services
1
  
38,297
  
44,539
  
1.1
  
—
Food and Staples Retailing
2
  
64,206
  
64,959
  
1.7
  
1.2
Food Products
1
  
100,123
  
106,697
  
2.7
  
2.4
Health Care Equipment and Supplies
1
  
32,196
  
42,636
  
1.1
  
1.7
Hotels, Restaurants and Leisure
1
  
54,367
  
54,669
  
1.4
  
—
Household Durables
2
  
106,718
  
112,635
  
2.9
  
3.8
Household Products
1
  
41,961
  
43,854
  
1.1
  
1.7
Industrial Conglomerates
—
  
—
  
—
  
—
  
0.8
Insurance
—
  
—
  
—
  
—
  
3.4
Internet and Catalog Retail
1
  
123,489
  
92,577
  
2.4
  
—


             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30, 2006
   
Dec. 31, 2005†
                   
Internet Software and Services
—
  
—
  
—
  
—
  
1.0
IT Services
—
  
—
  
—
  
—
  
0.7
Machinery
2
  
$    92,397
  
$ 131,205
  
3.4
  
3.9
Marine
—
  
—
  
—
  
—
  
1.2
Media
4
  
195,305
  
222,756
  
5.7
  
8.4
Metals and Mining
3
  
179,645
  
178,931
  
4.6
  
3.9
Multi-Utilities
1
  
99,724
  
103,534
  
2.6
  
1.4
Multiline Retail
1
  
33,081
  
32,467
  
0.8
  
0.9
Oil, Gas and Consumable Fuels
4
  
201,430
  
229,013
  
5.9
  
3.3
Pharmaceuticals
6
  
377,592
  
418,087
  
10.7
  
6.5
Real Estate Investment Trusts
1
  
30,071
  
68,971
  
1.8
  
1.5
Real Estate Management and Development
3
  
112,244
  
115,860
  
3.0
  
0.4
Road and Rail
—
  
—
  
—
  
—
  
1.2
Semiconductors and Semiconductor Equipment
4
  
269,637
  
262,180
  
6.7
  
2.6
Software
2
  
131,082
  
130,756
  
3.3
  
2.0
Specialty Retail
1
  
47,210
  
94,719
  
2.4
  
3.0
Textiles, Apparel and Luxury Goods
2
  
108,213
  
118,511
  
3.0
  
3.9
Tobacco
2
  
75,354
  
71,817
  
1.8
  
—
Wireless Telecommunication Services
1
  
58,767
  
66,520
  
1.7
  
2.3
 
67
  
3,497,127
  
3,827,001
  
97.9
  
98.0
Other Assets
                  
Less Liabilities
—
  
81,789
  
82,538
  
2.1
  
2.0
Net Assets
67
  
$3,578,916
  
$3,909,539
  
 100.0
  
 100.0
__________
† Restated to conform to current period’s classification.

Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
    
Largest Sales
  
Rakuten*
Statoil*
  
Credit Suisse Group**
Serono**
Sanofi-Aventis*
Euronext*
  
Merck KGaA**
Nippon Electric Glass**
Groupe Danone*
Vallourec*
  
Allianz**
UniCredito Italiano**
AstraZeneca*
Nintendo*
  
Nokia**
Publicis Groupe**
ARM Holdings*
SAP*
  
Dassault Systemes**
SES Global (FDR)**

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 Investment Grade Fixed Income Portfolio
Diversification of Net Assets
June 30, 2006
         
Percent of Net Assets
  
Issues
   
Value
   
June 30, 2006
   
December 31, 2005†
               
US Government and Government Agency Securities
 27
  
$ 1,277,041
  
 57.4
  
 42.5
Corporate Fixed Income Securities:
              
Aerospace and Defense
1
  
14,806
  
0.7
  
2.9
Airlines
—
  
—
  
—
  
1.2
Beverages
1
  
11,631
  
0.5
  
0.7
Biotechnology
—
  
—
  
—
  
0.5
Capital Markets
3
  
48,789
  
2.2
  
0.5
Chemicals
1
  
31,119
  
1.4
  
—
Commercial Banks
5
  
104,362
  
4.7
  
2.2
Consumer Finance
2
  
58,946
  
2.6
  
3.9
Diversified Financial Services
3
  
51,771
  
2.3
  
1.6
Diversified Telecommunication Services
4
  
108,971
  
4.9
  
0.7
Electric Utilities
7
  
127,210
  
5.8
  
4.9
Food and Staples Retailing
1
  
25,907
  
1.2
  
2.4
Food Products
1
  
18,342
  
0.8
  
1.1
Health Care Equipment and Supplies
—
  
—
  
—
  
0.8
Health Care Providers and Services
3
  
77,791
  
3.5
  
2.5
Hotels, Restaurants and Leisure
1
  
14,642
  
0.7
  
1.3
Household Durables
—
  
—
  
—
  
4.3
Household Products
1
  
9,247
  
0.4
  
—
Independent Power Producers and Energy Traders
—
  
—
  
—
  
1.5
Industrial Conglomerates
1
  
24,838
  
1.1
  
—
Insurance
3
  
32,894
  
1.5
  
3.0
Media
3
  
38,398
  
1.7
  
0.7
Multi-Utilities
2
  
34,413
  
1.5
  
1.3
Oil, Gas and Consumable Fuels
5
  
140,150
  
6.3
  
4.3
Pharmaceuticals
1
  
4,966
  
0.2
  
1.1
Real Estate Investment Trusts
—
  
—
  
—
  
0.7
Real Estate Management and Development
1
  
24,002
  
1.1
  
—
Specialty Retail
—
  
—
  
—
  
0.2
Thrifts and Mortgage Finance
3
  
61,865
  
2.8
  
1.3
Wireless Telecommunication Services
—
  
—
  
—
  
0.5
 
 53
  
1,065,060
  
 47.9
  
 46.1
Other Assets Less Liabilities
—
  
(118,140)
  
(5.3)
  
 11.4
Net Assets
 80
  
$2,223,961
  
  100.0
  
  100.0
 
__________
† Restated to conform to current period’s classification.

Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
  
Largest Sales
     
US Treasury Notes 3.5%, 2/15/2010*
  
US Treasury Notes 4.375%, 12/15/2010**
Fannie Mae:
  
Freddie Mac 5.05%, 12/8/2008**
6%, 7/2006 TBA*
  
Fannie Mae 5%, 3/2/2015**
5.5%, 2/22/2011*
  
US Treasury Notes:
US Treasury Notes:
  
3.375%, 10/15/2009**
4.5%, 2/15/2009*
  
4.5%, 11/15/2015**
5.125%, 5/15/2016*
  
CVS Lease 5.88%, 1/10/2028**
Fannie Mae 5.4%, 4/13/2009*
  
US Treasury Notes:
US Treasury Notes:
  
4.375%, 11/15/2008**
4.25%, 8/15/2013*
  
4.25%, 10/31/2007**
4.875%, 5/15/2009*
  
Tosco 8.125%, 2/15/2030**
Freddie Mac 5.4%, 2/28/2011*
  
D.R. Horton 5%, 1/15/2009**
Pemex Project Funding 8%, 11/15/2011*
  
 


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 Large-Cap Value Portfolio
Diversification of Net Assets
June 30, 2006

             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30, 2006
   
December 31, 2005
Common Stocks:
                  
Aerospace and Defense
2
  
$   209,483
  
$  351,460
  
7.5
  
6.3
Capital Markets
1
  
162,150
  
144,900
  
3.1
  
3.1
Chemicals
4
  
416,457
  
504,708
  
 10.7
  
  10.5
Commercial Banks
1
  
104,551
  
123,520
  
2.6
  
6.6
Communications Equipment
1
  
162,917
  
128,000
  
2.7
  
—
Computers and Peripherals
1
  
179,844
  
138,276
  
2.9
  
2.9
Diversified Financial Services
2
  
249,437
  
315,350
  
6.7
  
3.4
Energy Traders
—
  
—
  
—
  
—
  
2.4
Food and Staples Retailing
1
  
108,710
  
171,540
  
3.6
  
2.9
Health Care Equipment and Supplies
3
  
376,901
  
362,040
  
7.7
  
6.2
Health Care Providers and Services
—
  
—
  
—
  
—
  
2.6
Independent Power Producers and Energy Traders
1
  
69,690
  
147,600
  
3.1
  
—
Industrial Conglomerates
1
  
121,720
  
131,840
  
2.8
  
4.9
Insurance
3
  
406,556
  
438,340
  
9.3
  
9.3
IT Services
—
  
—
  
—
  
—
  
3.2
Machinery
1
  
71,327
  
148,960
  
3.2
  
3.0
Multiline Retail
1
  
36,524
  
135,020
  
2.9
  
3.2
Oil, Gas and Consumable Fuels
3
  
251,117
  
470,152
  
 10.0
  
8.6
Pharmaceuticals
1
  
153,259
  
133,230
  
2.8
  
3.2
Road and Rail
2
  
160,907
  
280,320
  
5.9
  
7.0
Specialty Retail
1
  
145,554
  
121,800
  
2.6
  
2.4
Thrifts and Mortgage Finance
1
  
103,123
  
159,530
  
3.4
  
2.9
Tobacco
1
  
72,030
  
146,860
  
3.1
  
3.2
Wireless Telecommunication Services
1
  
131,081
  
111,944
  
2.4
  
2.5
 
33
  
3,693,338
  
4,665,390
  
 99.0
  
100.3
Short-Term Holding and Other
                  
Assets Less Liabilities
1
  
48,616
  
48,616
  
1.0
  
(0.3)
Net Assets
34
  
$3,741,954
  
$4,714,006
  
100.0
  
 100.0

Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
Juniper Networks*
Boston Scientific*

Largest Sales
Amdocs**
HCA**
Tyco International**
CSX
Union Pacific
U.S. Bancorp
J.C. Penney
Caterpillar
JPMorgan Chase
Valero Energy

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 Smaller-Cap Value Portfolio
Diversification of Net Assets
June 30, 2006
             
Percent of Net Assets
  
Issues
   
Cost
   
Value
   
June 30,
2006
   
December 31,
2005
Common Stocks:
                  
Aerospace and Defense
1
  
$    5,332,442
  
$    5,883,000
  
2.6
  
2.5
Airlines
1
  
2,999,170
  
7,450,000
  
3.3
  
3.6
Beverages
1
  
1,674,794
  
4,000,000
  
1.8
  
1.8
Biotechnology
2
  
6,975,945
  
7,659,661
  
3.4
  
4.2
Chemicals
3
  
14,722,835
  
16,114,600
  
7.2
  
  11.9
Commercial Banks
1
  
3,914,720
  
3,721,695
  
1.7
  
—
Commercial Services and Supplies
3
  
7,769,295
  
14,888,400
  
6.7
  
7.2
Communications Equipment
1
  
5,078,353
  
4,808,250
  
2.2
  
1.5
Computers and Peripherals
1
  
3,226,950
  
3,272,500
  
1.5
  
—
Containers and Packaging
1
  
3,247,402
  
2,624,400
  
1.2
  
1.4
Diversified Consumer Services
1
  
2,471,893
  
6,300,000
  
2.8
  
3.1
Electrical Equipment
2
  
5,419,132
  
8,294,000
  
3.7
  
1.7
Electronic Equipment and Instruments
2
  
4,881,972
  
8,123,240
  
3.7
  
2.4
Energy Equipment and Services
2
  
6,782,028
  
12,870,000
  
5.8
  
4.7
Food and Staples Retailing
1
  
1,565,705
  
1,699,407
  
0.8
  
—
Food Products
1
  
1,669,270
  
4,020,000
  
1.8
  
2.2
Health Care Providers and Services
3
  
13,738,533
  
11,010,308
  
5.0
  
4.0
Hotels, Restaurants and Leisure
4
  
17,265,264
  
17,559,750
  
7.9
  
7.1
Household Durables
1
  
1,115,422
  
4,268,500
  
1.9
  
2.1
Insurance
4
  
12,460,174
  
18,558,800
  
8.3
  
7.0
IT Services
—
  
—
  
—
  
—
  
1.4
Machinery
2
  
8,411,970
  
12,197,700
  
5.5
  
7.8
Media
1
  
3,027,248
  
4,678,999
  
2.1
  
2.3
Multiline Retail
1
  
6,672,606
  
4,275,200
  
1.9
  
2.2
Oil, Gas and Consumable Fuels
1
  
678,184
  
4,460,000
  
2.0
  
1.6
Paper and Forest Products
—
  
—
  
—
  
—
  
0.8
Pharmaceuticals
1
  
3,634,791
  
4,640,000
  
2.1
  
2.0
Road and Rail
1
  
1,575,121
  
4,981,000
  
2.2
  
2.4
Semiconductors and Semiconductor Equipment
3
  
12,949,602
  
7,571,170
  
3.4
  
5.7
Specialty Retail
3
  
16,687,109
  
12,117,500
  
5.5
  
5.6
 
49
  
175,947,930
  
218,048,080
  
98.0
  
100.2
Short-Term Holding and Other
                  
Assets Less Liabilities
1
  
4,346,411
  
4,346,411
  
2.0
  
(0.2)
Net Assets
50
  
$180,294,341
  
$222,394,491
  
 100.0
  
   100.0

Largest Portfolio Changes
During the Six Months Ended June 30, 2006
Largest Purchases
  
Largest Sales
     
Claire’s Stores*
 
Stewart & Stevenson Services**
F5 Networks*
 
ATI Technologies**
South Financial Group*
 
NOVA Chemicals**
Endurance Specialty Holdings*
 
Sotheby’s Holdings (Class A)
Hypercom*
 
Terex
WellCare Health Plans*
 
Chemtura**
Symbol Technologies*
  
Finish Line (Class A)**
General Cable*    Carreker** 
Keryx Biopharmaceuticals
 
Continental Airlines
Central European Distribution*
  
Plantronics**

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.
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 ($14.6 billion as of June 30, 2006). 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 ($14.6 billion as of June 30, 2006). 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.

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 ($14.6 billion as of June 30, 2006). 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 ($14.6 billion as of June 30, 2006). 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 their equity portfolios 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 ($3.7 billion as of June 30, 2006). 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 ($3.7 billion as of June 30, 2006). 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 13.

12

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 Bond Index is composed of all publicly issued, nonconvertible, domestic debt of the US government or any agency thereof, quasi-federal corporations, or corporate debt guaranteed by the US government.

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 least 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.

MSCI EAFE Growth Index is a market capitalization-weighted index that measures stock market performance of these developed markets in Europe, Australasia, and the Far East with a greater-than-average growth orientation.

MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed equity markets.

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

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.

Standard & Poor’s 500 Composite Index measures the performance of 500 of the largest US companies based on market capitalization.
_____________
Adapted from materials 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.

13

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 companies’ 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, 2006 and held for the entire six-month period ended June 30, 2006.

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
1/1/06
  
Annualized
Expense
Ratio*
  
Annualized
Expense
Reimbursement
Ratio†
  
Ending
Account
Value
6/30/06
  
Expenses Paid
During Period**
1/1/06 to
6/30/06
  
Ending
Account
Value
6/30/06
  
Expenses Paid
During Period**
1/1/06 to
6/30/06
Capital
                          
Class 1
$1,000.00
  
   1.02%
      
$  990.60
  
$5.03
  
$1,019.74
  
$ 5.11
Class 2
1,000.00
  
1.27
      
  989.70
  
  6.27
  
1,018.50
  
  6.36
Cash Management
1,000.00
  
0.70
      
  1,019.40
  
  3.50
  
1,021.32
  
  3.51
Common Stock
1,000.00
  
0.93
      
  1,013.80
  
  4.64
  
1,020.18
  
  4.66
Communications and Information
                          
Class 1
1,000.00
  
1.05
      
  1,046.70
  
  5.33
  
1,019.59
  
  5.26
Class 2
1,000.00
  
1.30
      
  1,045.20
  
  6.59
  
1,018.35
  
  6.51
Global Technology
                          
Class 1
1,000.00
  
1.90
  
   0.51%
  
  1,016.20
  
  9.50
  
1,015.37
  
  9.49
Class 2
1,000.00
  
2.05
  
0.51
  
  1,015.60
  
10.25
  
1,014.63
  
10.24
International Growth
1,000.00
  
2.00
  
1.92
  
  1,071.20
  
10.27
  
1,014.88
  
  9.99
Investment Grade
1,000.00
  
0.85
  
1.46
  
 985.20
  
 4.18
  
1,020.58
  
  4.26
Large-Cap Value
1,000.00
  
1.34
      
  1,035.10
  
 6.76
  
1,018.15
  
  6.71
Smaller-Cap Value
                          
Class 1
1,000.00
  
1.14
      
  1,072.00
  
 5.86
  
1,019.14
  
  5.71
Class 2
1,000.00
  
1.33
      
  1,070.50
  
 6.83
  
1,018.20
  
  6.66
__________
*
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, 2006 to June 30, 2006, 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 39 of this report for additional information.


14

Seligman Portfolios, Inc.
Portfolios of Investments  (unaudited)
June 30, 2006
 
Seligman Capital Portfolio
 
 
Shares
  
Value
Common Stocks 95.8%
      
Aerospace and Defense 1.4%
      
Precision Castparts
1,100
  
$       65,736
Rockwell Collins
1,800
  
100,566
     
166,302
Air Freight and Logistics 1.2%
      
Expeditors International of Washington
1,600
  
89,576
C.H. Robinson Worldwide
1,100
  
58,580
     
148,156
Airlines 0.9%
      
Southwest Airlines
6,400
  
104,768
       
Biotechnology 2.7%
      
Applera-Celera Genomics Group*
2,900
  
37,555
Biogen Idec*
700
  
32,428
Celgene*
2,100
  
99,435
Cepheid*
5,500
  
52,883
Cubist Pharmaceuticals*
1,500
  
37,815
MedImmune*
2,150
  
58,276
     
318,392
Capital Markets 4.1%
      
E*TRADE Financial*
2,800
  
63,896
Legg Mason
900
  
89,568
Northern Trust
3,300
  
182,539
T. Rowe Price Group
4,200
  
158,655
     
494,658
Chemicals 2.4%
      
Ashland
900
  
60,030
Huntsman*
4,700
  
81,404
International Flavors & Fragrances
4,000
  
140,960
     
282,394
Commercial Banks 1.0%
      
Commerce Bancorp
1,700
  
60,639
Zions Bancorporation
700
  
54,572
     
115,211
Commercial Services and Supplies 7.0%
      
Allied Waste Industries*
10,800
  
122,688
Cintas
6,300
  
250,709
Corrections Corporation of America*
3,800
  
201,172
Herman Miller
9,800
  
265,629
     
840,198
Communications Equipment 1.1%
      
F5 Networks*
1,300
  
69,453
Research In Motion*
900
  
62,802
     
132,255
Computers and Peripherals 1.5%
      
Diebold
1,400
  
56,868
Network Appliance*
2,000
  
70,610
SanDisk*
1,000
  
50,985
     
178,463
Construction and Engineering 2.2%
      
Fluor
1,700
  
157,981
Jacobs Engineering Group*
1,300
  
103,532
     
261,513

 
Shares
  
Value
Containers and Packaging 2.2%
      
Pactiv*
5,400
  
$     133,650
Temple-Inland
3,000
  
128,610
     
262,260
Diversified Financial Services 1.3%
      
Chicago Mercantile Exchange Holdings
200
  
98,230
Moody’s
1,100
  
59,906
     
158,136
Electrical Equipment 1.0%
      
Rockwell Automation
1,600
  
115,216
     
Electronic Equipment and Instruments 1.1%
    
Agilent Technologies*
3,300
  
104,148
Jabil Circuit
1,000
  
25,600
     
129,748
Energy Equipment and Services 4.6%
      
BJ Services
4,500
  
167,670
Patterson-UTI Energy
2,900
  
82,258
Pride International*
3,800
  
118,674
Smith International
4,000
  
177,880
     
546,482
Food and Staples Retailing 0.5%
      
Whole Foods Market
1,000
  
64,605
       
Food Products 3.9%
      
Dean Foods*
4,500
  
167,355
Hershey
1,100
  
60,577
Smithfield Foods*
2,200
  
63,426
J.M. Smucker
1,500
  
67,050
Tyson Foods (Class A)
7,400
  
109,964
     
468,372
Gas Utilities 0.3%
      
Equitable Resources
1,100
  
36,850
       
Health Care Equipment and Supplies 4.5%
      
Biomet
1,000
  
31,305
Conor Medsystems*
2,200
  
60,665
Cooper
2,700
  
119,583
DENTSPLY International
1,400
  
84,819
Given Imaging*
2,200
  
33,550
Hologic*
1,300
  
64,220
Intuitive Surgical*
300
  
34,387
Northstar Neuroscience*
3,500
  
37,923
Quidel*
4,400
  
42,394
St. Jude Medical*
1,100
  
35,662
     
544,508
Health Care Providers and Services 3.7%
      
Health Net*
1,900
  
85,823
Laboratory Corporation of America Holdings*
1,300
  
80,899
Manor Care
2,100
  
98,532
Patterson*
1,600
  
55,880
Psychiatric Solutions*
1,700
  
48,688
Quest Diagnostics
1,300
  
77,896
     
447,718
_____________
See footnotes on page 29.

15

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Capital Portfolio (continued)

 
Shares
  
Value
Health Care Technology 1.4%
      
IMS Health
2,400
  
$       64,440
Omnicell*
7,400
  
103,082
     
167,522
Hotels, Restaurants and Leisure 3.3%
      
International Game Technology
3,000
  
113,820
Sonic*
8,850
  
190,806
YUM! Brands
1,700
  
85,459
     
390,085
Household Durables 0.5%
      
Fortune Brands
800
  
56,808
       
Independent Power Producers and Energy Traders 1.0%
      
AES*
6,200
  
114,390
       
Internet Software and Services 0.6%
      
j2 Global Communications*
2,400
  
75,060
       
IT Services 5.2%
      
Amdocs*
5,000
  
183,000
Cognizant Technology Solutions (Class A)*
1,100
  
74,112
Euronet Worldwide*
1,900
  
72,438
Fiserv*
3,100
  
140,678
Paychex
3,900
  
152,139
     
622,367
Life Sciences Tools and Services 1.7%
      
Illumina*
1,600
  
47,544
Nektar Therapeutics*
3,600
  
65,808
Pharmaceutical Product Development
2,700
  
94,892
     
208,244
Machinery 1.5%
      
Dover
1,000
  
49,430
ITT
1,500
  
74,250
Joy Global
1,100
  
57,508
     
181,188
Media 1.5%
      
Liberty Global (Series A)*
3,100
  
66,387
Sirius Satellite Radio*
11,900
  
56,227
Univision Communications (Class A)*
1,700
  
56,950
     
179,564
Metals and Mining 1.1%
      
Allegheny Technologies
400
  
27,696
Freeport-McMoRan Copper & Gold (Class B)
1,800
  
99,738
     
127,434
Multiline Retail 1.5%
      
Family Dollar Stores
7,300
  
178,339
       
Office Electronics 0.4%
      
Zebra Technologies (Class A)*
1,400
  
47,768
 


 
Shares
  
Value
Oil, Gas and Consumable Fuels 5.4%
      
EOG Resources
2,100
  
$     145,614
Kinder Morgan
700
  
69,923
Noble Energy
3,700
  
173,382
Peabody Energy
1,500
  
83,625
Pogo Producing
1,800
  
82,980
Sunoco
1,300
  
90,077
     
645,601
Personal Products 3.2%
      
Avon Products
2,800
  
86,800
NBTY*
12,400
  
296,484
     
383,284
Pharmaceuticals 3.9%
      
Allergan
1,600
  
171,616
Forest Laboratories*
1,400
  
54,166
K-V Pharmaceutical (Class A)*
2,000
  
37,320
Penwest Pharmaceuticals*
3,600
  
78,516
Sepracor*
2,100
  
120,036
     
461,654
Road and Rail 0.8%
      
CSX
1,400
  
98,616
       
Semiconductors and Semiconductor Equipment 4.1%
      
Agere Systems*
4,100
  
60,270
Analog Devices
2,700
  
86,778
KLA-Tencor
1,100
  
45,771
Linear Technology
2,100
  
70,318
Maxim Integrated Products
1,600
  
51,432
MEMC Electronic Materials*
800
  
30,000
Micron Technology*
3,000
  
45,180
NVIDIA*
1,900
  
40,470
Xilinx
2,500
  
56,787
     
487,006
Software 4.3%
      
Autodesk*
1,800
  
62,001
BEA Systems*
2,300
  
30,118
Citrix Systems*
1,100
  
44,138
Cogent*
11,900
  
178,798
Electronic Arts*
1,900
  
81,681
NAVTEQ*
1,400
  
62,552
Quest Software*
3,600
  
50,490
     
509,778
Specialty Retail 4.2%
      
bebe stores
1,600
  
24,968
Bed Bath & Beyond*
3,600
  
119,430
Chico’s FAS*
3,600
  
97,128
Limited Brands
7,600
  
194,484
Tractor Supply*
1,300
  
69,049
     
505,059

__________
See footnotes on page 29.

16

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Capital Portfolio (continued)

 
Shares
  
Value
Thrifts and Mortgage Finance 0.6%
      
Hudson City Bancorp
5,600
  
$       74,620
       
Wireless Telecommunication Services 1.0%
      
American Tower (Class A)*
2,700
  
84,024
NII Holdings (Class B)*
700
  
39,483
     
123,507
Total Common Stocks  (Cost $10,971,370)
    
$11,454,099


 
Principal
Amount
  
Value
Repurchase Agreement 2.9%
      
State Street Bank 4.15%, dated 6/30/2006, maturing 7/3/2006, in the amount of $345,119, collateralized by:
$350,000 US Treasury Notes 6.5%, 10/15/2006, with a fair market value of $356,125 (Cost $345,000)
$345,000
  
$     345,000
Total Investments 98.7%
   (Cost $11,316,370)
    
11,799,099
Other Assets Less Liabilities 1.3%
    
153,988
Net Assets 100.0%
    
$11,953,087
 
 
Seligman Cash Management Portfolio
 
 
Annualized
Yield on
Purchase
Date
  
Principal
Amount
  
Value
US Government and Government Agency Securities 35.6%
          
US Government Securities 12.9%
          
US Treasury Bills:
          
4.61%, 7/13/2006
4.67%
  
$ 800,000
  
$798,771
4.615%, 7/20/2006
4.68
  
900,000
  
897,808
         
1,696,579
Government Agency Securities 22.7%
          
Fannie Mae 5.17%, 7/24/2006
5.24
  
1,000,000
  
996,697
Federal Home Loan Bank
          
4.919%, 7/19/2006
4.99
  
1,000,000
  
997,540
Freddie Mac 4.961%, 7/5/2006
5.03
  
1,000,000
  
999,449
         
2,993,686
           
Total US Government and Government Agency Securities (Cost $4,690,265)
        
4,690,265
           
Fixed Time Deposits 29.9%
          
Bank of Montreal, Toronto  5.01%, 7/3/2006 
5.08 
  
656,000 
  
656,000 
BNP Paribas, Grand Cayman  5.28%, 7/3/2006
5.35
  
655,000
  
655,000
Citibank, N.A., Nassau  5.1%, 7/5/2006
5.17
  
655,000
  
655,000
Dexia Credit Local, Grand Cayman   5.07%, 7/3/2006
4.39
  
655,000
  
655,000
Rabobank Nederland, Grand Cayman   5.01%, 7/3/2006
5.08
  
656,000
  
656,000
Royal Bank of Scotland, London   5.25%, 7/5/2006
5.32
  
655,000
  
655,000
Total Fixed Time Deposits (Cost $3,932,000)
        
3,932,000
 

 
 
Annualized
Yield on
Purchase
Date
  
Principal
Amount
  
Value
  
Repurchase Agreement 19.6%
            
State Street Bank 4.15%, dated 6/30/2006, maturing 7/3/2006, in the amount of $2,579,893, collateralized by: $2,615,000 US Treasury Notes 6.5%, 10/15/2006, with a fair market value of $2,660,763 (Cost $2,579,000)
4.21%
  
$2,579,000
  
$2,579,000
  
             
Commercial Paper 15.1%
            
AIG Funding 5.26%, 8/14/2006
5.33
  
655,000
  
650,789
  
American Express Credit 4.99%, 7/6/2006
5.06
  
670,000
  
669,536
  
General Electric Capital 5.02%, 7/6/2006
5.09
  
662,000
  
661,538
  
Total Commercial Paper
   (Cost $1,981,863)
        
1,981,863
  
Total Investments 100.2%
   (Cost $13,183,128)
        
13,183,128
  
Other Assets Less Liabilities (0.2)%
        
(24,200
 )
Net Assets 100.0%
        
$13,158,928
  

__________
See footnotes on page 29.

17
 
Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Common Stock Portfolio
 

 
Shares or
Warrants
  
Value
Common Stocks and Warrants 95.1%
      
Aerospace and Defense 2.4%
      
Boeing
500
 shs.
$       40,955
General Dynamics
600
  
39,276
Honeywell International
2,200
  
88,660
Raytheon* (exercise price of $37.50, expiring 6/16/2011)
267
 wts.
3,378
     
172,269
Beverages 1.5%
      
Coca-Cola
900
 shs.
38,718
Coca-Cola Enterprises
2,200
  
44,814
PepsiCo
400
  
24,016
     
107,548
Biotechnology 2.0%
      
Amgen*
1,200
  
78,264
Pharmion*
3,743
  
63,650
     
141,914
Building Products 0.2%
      
Masco
400
  
11,856
       
Capital Markets 3.4%
      
Bank of New York
1,900
  
61,180
Goldman Sachs Group
300
  
45,129
Legg Mason
200
  
19,904
Merrill Lynch
1,100
  
76,516
Morgan Stanley
690
  
43,615
     
246,344
Chemicals 2.4%
      
Dow Chemical
1,600
  
62,448
E.I. du Pont de Nemours
1,700
  
70,720
Praxair
800
  
43,200
     
176,368
Commercial Banks 1.1%
      
Wachovia
1,540
  
83,283
       
Commercial Services and Supplies 1.3%
      
Cendant
3,500
  
57,015
Waste Management
1,100
  
39,468
     
96,483
Communications Equipment 6.0%
      
Cisco Systems*
4,770
  
93,134
Corning*
3,900
  
94,341
Lucent Technologies*
15,500
  
37,510
Lucent Technologies* (exercise price of $2.75, expiring 12/10/2007)
36,720
 wts.
9,731
Motorola
1,800
 shs.
36,270
Nokia (ADR)
2,700
  
54,702
QUALCOMM
2,700
  
108,230
     
433,918
Computers and Peripherals 4.9%
      
Apple Computer*
900
  
51,507
EMC*
8,400
  
92,148
Hewlett-Packard
2,100
  
66,528



 
Shares
  
Value
Computers and Peripherals (continued)
      
International Business Machines
1,220
  
$        93,720
Seagate Technology*
2,400
  
54,336
     
358,239
Containers and Packaging 1.4%
      
Smurfit-Stone Container*
9,400
  
102,789
       
Diversified Financial Services 7.5%
      
Bank of America
3,740
  
179,894
CIT Group
600
  
31,374
Citigroup
3,860
  
186,206
JPMorgan Chase
3,440
  
144,480
     
541,954
Diversified Telecommunication Services 2.2%
      
AT&T
1,900
  
52,991
BellSouth
600
  
21,720
Citizens Communications
3,600
  
46,980
Verizon Communications
1,200
  
40,188
     
161,879
Electronic Equipment and Instruments 0.5%
      
Symbol Technologies
3,300
  
35,607
       
Energy Equipment and Services 1.2%
      
Halliburton
600
  
44,526
Tidewater
800
  
39,360
     
83,886
Food and Staples Retailing 2.6%
      
CVS
3,400
  
104,380
Wal-Mart Stores
1,710
  
82,371
     
186,751
Food Products 0.4%
      
Hershey
600
  
33,042
       
Health Care Equipment and Supplies 2.1%
      
Bausch & Lomb
400
  
19,616
Boston Scientific*
4,200
  
70,728
Medtronic
1,300
  
60,996
     
151,340
Health Care Providers and Services 2.8%
      
Aetna
1,400
  
55,902
UnitedHealth Group
1,200
  
53,736
WellPoint*
1,300
  
94,601
     
204,239
Hotels, Restaurants and Leisure 0.8%
      
McDonald’s
1,800
  
60,480
       
Household Products 1.1%
      
Procter & Gamble
1,400
  
77,840
       
Industrial Conglomerates 3.9%
      
General Electric
7,310
  
240,938
Tyco International
1,420
  
39,050
     
279,988

__________
See footnotes on page 29.

18

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Common Stock Portfolio (continued)

 
Shares
  
Value
Insurance 3.4%
      
Allstate
800
  
$       43,784
American International Group
1,600
  
94,480
MetLife
600
  
30,726
UnumProvident
1,600
  
29,008
XL Capital (Class A)
800
  
49,040
     
247,038
Internet Software and Services 1.5%
      
Google (Class A)*
100
  
41,932
McAfee*
1,900
  
46,113
Symantec*
1,285
  
19,962
     
108,007
Machinery 0.9%
      
Illinois Tool Works
1,380
  
65,550
       
Media 4.8%
      
Clear Channel Communications
1,720
  
53,234
Comcast (Class A)*
1,700
  
55,802
News Corp. (Class B)
3,200
  
61,376
Time Warner
5,290
  
91,517
Univision Communications (Class A)*
1,580
  
52,930
Viacom (Class B)*
900
  
32,256
     
347,115
Metals and Mining 1.4%
      
Alcoa
1,800
  
58,248
Freeport-McMoRan Copper & Gold (Class B)
800
  
44,328
     
102,576
Multi-Utilities 0.6%
      
Dominion Resources
600
  
44,874
       
Multiline Retail 0.9%
      
Dollar General
4,700
  
65,706
       
Oil, Gas and Consumable Fuels 7.9%
      
Chevron
2,300
  
142,738
ConocoPhillips
1,500
  
98,295
Exxon Mobil
3,250
  
199,388
Murphy Oil
840
  
46,922
Sunoco
1,250
  
86,612
     
573,955
Pharmaceuticals 6.1%
      
Forest Laboratories*
1,500
  
58,035
Johnson & Johnson
842
  
50,453
Eli Lilly
800
  
44,216
Pfizer
5,700
  
133,779
Valeant Pharmaceuticals International
4,200
  
71,064
Wyeth
1,870
  
83,047
     
440,594
Semiconductors and Semiconductor
      
Equipment 1.6%
      
Broadcom (Class A)*
1,100
  
33,055
Maxim Integrated Products
1,500
  
48,217
Texas Instruments
1,200
  
36,348
     
117,620
 
 

 
Shares or
Shares
Subject to
Call
  
Value
Software 5.5%
      
Activision*
2,400
  
$    27,312
Business Objects (ADR)*
2,100
  
57,110
Cogent*
6,400
  
96,160
Mercury Interactive*
2,215
  
77,370
Microsoft
6,170
  
143,792
     
401,744
Specialty Retail 2.1%
      
Abercrombie & Fitch (Class A)
1,200
  
66,516
Home Depot
1,400
  
50,106
Urban Outfitters*
1,900
  
33,212
     
149,834
Thrifts and Mortgage Finance 1.3%
      
Fannie Mae
1,200
  
57,720
Freddie Mac
600
  
34,206
     
91,926
Tobacco 3.0%
      
Altria Group
2,470
  
181,372
UST
795
  
35,926
     
217,298
Wireless Telecommunication Services 2.4%
      
American Tower (Class A)*
2,500
  
77,800
Sprint Nextel
4,800
  
95,952
     
173,752
Total Common Stocks and Warrants
   (Cost $6,940,654)
    
6,895,606
       
Options Purchased* 3.6%
      
Beverages 0.3%
      
Coca-Cola Enterprises, Call expiring January 2008 at $15
3,100
  
20,615
       
Communications Equipment 0.5%
      
Comverse Technology, Call expiring January 2007 at $20
3,000
  
13,050
Corning, Call expiring January 2007 at $22.50
2,400
  
9,960
Motorola, Call expiring January 2008 at $17.50
1,900
  
9,880
     
32,890
Computers and Peripherals 0.4%
      
Dell, Call expiring January 2008 at $25
3,000
  
12,300
Seagate Technology, Call expiring January 2007 at $17.50
2,300
  
14,260
     
26,560
Health Care Equipment and Supplies 0.3%
      
Bausch & Lomb, Call expiring January 2008 at $50
1,000
  
9,400
St. Jude Medical, Call expiring January 2008 at $35
2,300
  
10,925
     
20,325
 __________
See footnotes on page 29.

19

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Common Stock Portfolio (continued)
 

 
Shares
Subject to Call
  
Value
Hotels, Restaurants and Leisure 0.2%
      
McDonald’s, Call expiring January 2008 at $30
2,500
  
$    16,750
       
Household Products 0.1%
      
Procter & Gamble, Call expiring January 2008 at $55
1,000
  
7,480
       
Media 0.1%
      
Univision Communications, Call expiring September 2006 at $30
1,900
  
7,600
       
Multiline Retail 0.1%
      
Dollar General, Call expiring January 2008 at $15
4,100
  
7,790
       
Pharmaceuticals 0.1%
      
Forest Laboratories, Call expiring January 2007 at $40
1,400
  
7,420
       
Semiconductors and Semiconductor Equipment 0.2%
      
Intel, Call expiring January 2008 at $20
6,500
  
16,965
       
Software 0.6%
      
Activision, Call expiring January 2008 at $15
4,700
  
8,225
Cogent, Call expiring December 2006 at $15
4,300
  
10,535
Mercury Interactive, Call expiring January 2008 at $20
1,500
  
25,500
     
44,260


 
Shares
Subject to
Call or
Principal
Amount
  
Value
Thrifts and Mortgage Finance 0.1%
      
Fannie Mae, Call expiring September 2006 at $70
4,900.
shs.
$         245
Freddie Mac, Call expiring January 2008 at $55
800
  
6,760
     
7,005
Tobacco 0.6%
      
Altria Group, Call expiring January 2008 at $70
1,200
  
12,360
Altria Group, Call expiring January 2008 at $75
1,100
  
8,800
Altria Group, Call expiring January 2008 at $80
2,300
  
12,190
Altria Group, Call expiring January 2008 at $85
3,700
  
12,950
     
46,300
       
Total Options Purchased (Cost $314,976)
    
261,960
       
Short-Term Holdings 1.2%
      
US Government Securities 0.7%
      
US Treasury Notes 7%, 7/15/2006
$ 50,000
  
50,040
       
Corporate Notes 0.5%
      
Goldman Sachs Group, Aggregate Mandatory Exchangeable Notes 13%, 12/20/2006†‡
36,000
  
35,305
Total Short-Term Holdings (Cost $86,040)
    
85,345
Total Investments 99.9% (Cost $7,341,670)
    
7,242,911
Other Assets Less Liabilities 0.1%
    
8,334
Net Assets 100.0%
    
$7,251,245
 
 
Seligman Communications and Information Portfolio

 
Shares
  
Value
Common Stocks 96.6%
      
Application Software 10.6%
      
Autodesk*
40,200
  
$1,384,689
Business Objects (ADR)*
13,000
  
353,535
Mercury Interactive*
90,000
  
3,143,700
Quest Software*
66,200
  
928,455
     
5,810,379
Communications Equipment 9.4%
      
Cisco Systems*
49,700
  
970,392
Corning*
30,900
  
747,471
F5 Networks*
8,800
  
470,140
Motorola
41,400
  
834,210
Nokia (ADR)
16,300
  
330,238
QUALCOMM
32,100
  
1,286,729
TomTom*
13,100
  
509,059
     
5,148,239


 
Shares
  
Value
Computer Hardware 1.5%
      
Apple Computer*
9,600
  
$  549,408
Hewlett-Packard
8,200
  
259,776
     
809,184
       
Computer Storage and Peripherals 8.9%
      
Electronics for Imaging*
21,500
  
447,953
EMC*
79,500
  
872,115
Komag*
7,900
  
364,585
SanDisk*
15,700
  
800,464
Seagate Technology*
105,700
  
2,393,048
     
4,878,165

_____________
See footnotes on page 29.

20

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Communications and Information Portfolio (continued)

 
Shares
  
Value
Data Processing and Outsourced Services 1.0%
      
First Data
12,300
  
$  553,992
       
Electronic Equipment Manufacturers 2.8%
      
Amphenol (Class A)
14,400
  
805,824
Orbotech*
30,600
  
702,270
     
1,508,094
Health Care Equipment 1.6%
      
Boston Scientific*
8,600
  
144,824
Kinetic Concepts*
15,700
  
693,155
     
837,979
Internet Software and Services 16.6%
      
Digital River*
22,200
  
897,324
McAfee*
133,700
  
3,244,899
Symantec*
176,683
  
2,744,770
VeriSign*
93,100
  
2,158,524
     
9,045,517
IT Consulting and Other Services 4.2%
      
Amdocs*
62,000
  
2,269,200
       
Life Sciences Tools and Services 1.4%
      
Invitrogen*
9,100
  
601,874
Waters*
3,700
  
164,280
     
766,154
Semiconductor Equipment 9.3%
      
ASML Holding (NY shares)*
50,300
  
1,016,815
Cymer*
33,100
  
1,536,005
KLA-Tencor*
34,900
  
1,452,189
Lam Research*
18,600
  
868,155
Verigy*
14,500
  
230,260
     
5,103,424
Semiconductors 16.0%
      
ARM Holdings
65,191
  
136,491
Broadcom (Class A)*
21,400
  
643,177
Freescale Semiconductor (Class A)*
24,000
  
696,000
Integrated Device Technology*
66,300
  
891,404
Linear Technology
16,200
  
542,457
Marvell Technology Group*
23,300
  
1,030,443
Maxim Integrated Products
36,200
  
1,163,649
Microchip Technology
8,800
  
295,724



 
Shares or
Shares
Subject
to Put
  
Value
Semiconductors (continued)
      
Monolithic Power Systems*
25,200
  
$    298,368
Silicon Laboratories*
18,500
  
630,387
Taiwan Semiconductor Manufacturing
269,857
  
486,867
Techwell*
11,200
  
118,440
Tessera Technologies*
15,700
  
432,064
Texas Instruments
27,500
  
832,975
Xilinx
24,300
  
551,974
     
8,750,420
Systems Software 4.0%
      
BMC Software*
17,300
  
413,470
Macrovision*
21,700
  
466,767
Oracle*
89,700
  
1,300,202
     
2,180,439
Technical Software 6.5%
      
Cadence Design Systems*
66,900
  
1,148,673
Synopsys*
128,500
  
2,412,587
     
3,561,260
Wireless Telecommunication Services 2.8%
    
Alltel
12,500
  
797,875
Nll Holdings (Class B)*
5,200
  
293,306
Sprint Nextel
22,100
  
441,779
     
1,532,960
       
Total Common Stocks (Cost $54,695,791)
    
52,755,406
       
Option Purchased 0.1%
      
Health Care Equipment 0.1%
      
Kinetic Concepts, Put expiring September 2006 at $40* (Cost $91,057)
13,500
  
68,850
Total Investments 96.7% (Cost $54,786,848)
    
52,824,256
Other Assets Less Liabilities 3.3%
    
1,820,002
Net Assets 100.0%
    
$54,644,258

_____________
See footnotes on page 29.

21

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Global Technology Portfolio

 
Shares
  
Value
Common Stocks 95.6%
      
Canada 0.3%
      
Corel* (Application Software)
2,200
  
$    26,510
       
China 0.5%
      
Tencent Holdings (Internet Software and Services)
19,000
  
39,906
       
Finland 1.6%
      
Nokia (ADR) (Communications Equipment)
6,700
  
135,742
       
France 1.3%
      
Atos Origin* (IT Consulting and Other Services)
303
  
19,795
Business Objects (ADR)* (Application Software)
3,200
  
87,024
     
106,819
India 0.8%
      
Rolta India (IT Consulting and Other Services)
4,900
  
16,007
Rolta India (GDR)* (IT Consulting and Other Services)
2,447
  
7,977
Rolta India (GDR)†* (IT Consulting and Other Services)
12,300
  
40,098
     
64,082
Israel 0.9%
      
Orbotech* (Electronic Equipment Manufacturers)
3,300
  
75,735
       
Japan 7.8%
      
Canon (Office Electronics)
1,800
  
88,038
HOYA (Electronic Equipment Manufacturers)
3,300
  
117,973
Keyence (Electronic Equipment Manufacturers)
200
  
51,147
Matsushita Electric Industrial (Consumer Electronics)
4,100
  
86,758
Murata Manufacturing (Electronic Equipment Manufacturers)
1,300
  
84,926
Nitto Denko (Specialty Chemicals)
400
  
28,524
Sega Sammy Holdings (Leisure Products)
2,300
  
85,071
Shinko Electric Industries (Semiconductors)
1,700
  
49,055
Tokyo Electron (Semiconductor Equipment)
900
  
63,236
     
654,728
Netherlands 3.8%
      
ASML Holding (NY shares)* (Semiconductor Equipment)
5,900
  
119,269
Philips Electronics (Consumer Electronics)
2,089
  
65,312
TomTom* (Communications Equipment)
3,304
  
128,249
     
312,830
Norway 0.5%
      
Tandberg Television* (Communications Equipment)
2,600
  
43,044




 
Shares
  
Value
Singapore 0.9%
      
STATS ChipPAC (ADR)* (Semiconductors)
12,300
  
$    76,937
       
South Korea 1.9%
      
Gmarket (ADR)* (Internet Retail)
3,300
  
50,771
Hynix Semiconductor*† (Semiconductors)
176
  
5,676
Hynix Semiconductor* (Semiconductors)
1,230
  
39,737
Samsung Electronics (Semiconductors)
100
  
63,818
     
160,002
Spain 0.2%
      
Telvent GIT* (IT Consulting and Other Services)
990
  
12,627
       
Taiwan 3.0%
      
ChipMOS TECHNOLOGIES (Bermuda)* (Semiconductors)
10,600
  
62,487
Hon Hai Precision Industry (Electronic Manufacturing Services)
10,936
  
67,341
Taiwan Semiconductor Manufacturing (Semiconductors)
55,499
  
99,918
Taiwan Semiconductor Manufacturing (ADR) (Semiconductors)
2,569
  
23,583
     
253,329
United Kingdom 1.9%
      
ARM Holdings (Semiconductors)
30,460
  
63,608
LogicaCMG (IT Consulting and Other Services)
30,255
  
97,425
     
161,033
United States 70.2%
      
Amdocs* (IT Consulting and Other Services)
10,000
  
366,000
Amphenol (Class A) (Electronic Equipment Manufacturers)
2,500
  
139,900
Apple Computer* (Computer Hardware)
1,500
  
85,845
Autodesk* (Application Software)
5,300
  
182,558
BMC Software* (Systems Software)
2,600
  
62,140
Broadcom (Class A)* (Semiconductors)
3,300
  
99,181
Cadence Design Systems* (Technical Software)
9,700
  
166,549
Cisco Systems* (Communications Equipment)
3,300
  
64,432
Comverse Technology* (Communications Equipment)
2,300
  
45,540
Corning* (Communications Equipment)
4,600
  
111,274
Cymer* (Semiconductor Equipment)
3,100
  
143,855
Digital River* (Internet Software and Services)
3,400
  
137,428
Electronics for Imaging* (Computer Storage and Peripherals)
2,500
  
52,088
EMC* (Computer Storage and Peripherals)
15,800
  
173,326
F5 Networks* (Communications Equipment)
1,300
  
69,452
 
_____________
See footnotes on page 29.
 
22

 
 
Shares
  
Value
United States (continued)
      
First Data (Data Processing and Outsourced Services)
1,800
  
$    81,072
Freescale Semiconductor (Class A)* (Semiconductors)
3,500
  
101,500
Hewlett-Packard (Computer Hardware)
1,200
  
38,016
Integrated Device Technology* (Semiconductors)
10,400
  
139,828
Invitrogen* (Life Sciences Tools and Services)
800
  
52,912
KLA-Tencor* (Semiconductors)
4,100
  
170,601
Komag (Computer Storage and Peripherals)
600
  
27,690
Lam Research* (Semiconductor Equipment)
2,800
  
130,690
Linear Technology (Semiconductors)
1,200
  
40,182
Macrovision* (Systems Software)
3,200
  
68,832
Marvell Technology Group* (Semiconductors)
2,200
  
97,295
Maxim Integrated Products (Semiconductors)
5,800
  
186,441
McAfee* (Internet Software and Services)
14,500
  
351,915
Mercury Interactive* (Application Software)
8,000
  
279,440
Motorola (Communications Equipment)
4,700
  
94,705
NII Holdings (Class B)* (Wireless Telecommunication Services)
800
  
45,124
Oracle* (Systems Software)
11,400
  
165,243

 
 
Shares
  
Value
QUALCOMM (Communications Equipment)
4,600
  
$  184,391
Quest Software* (Application Software)
8,700
  
122,017
RSA Security* (Systems Software)
2,100
  
56,963
SanDisk* (Computer Storage and Peripherals)
2,200
  
112,167
Seagate Technology* (Computer Storage and Peripherals)
12,000
  
271,680
Silicon Laboratories* (Semiconductors)
2,800
  
95,410
Sprint Nextel (Wireless Telecommunication Services)
4,700
  
93,953
Symantec* (Internet Software and Services)
18,677
  
290,143
Synopsys* (Technical Software)
9,800
  
183,995
Tessera Technologies* (Semiconductors)
2,300
  
63,296
Texas Instruments (Semiconductors)
2,800
  
84,812
VeriSign* (Internet Software and Services)
11,300
  
261,990
Xilinx (Semiconductors)
3,600
  
81,774
     
5,873,645
Total Investments 95.6% (Cost $8,161,800)
    
7,996,969
Other Assets Less Liabilities 4.4%
    
365,396
Net Assets 100.0% 
    
$8,362,365 

 
Seligman International Growth Portfolio


 
Shares
  
Value
Common Stocks 97.9%
      
Argentina 1.1%
      
Tenaris ADR (Energy Equipment and Services)
1,100
  
$    44,539
       
Austria 1.2%
      
Erste Bank Der Oesterreichischen Sparkassen (Commercial Banks)
855
  
48,052
       
Belgium 1.2%
      
KBC Groep (Commercial Banks)
449
  
48,125
       
Brazil 2.0%
      
Companhia Vale do Rio Doce “CVRD” (ADR) (Metals and Mining)
3,200
  
76,928
       
Canada 5.0%
      
Cameco (Oil, Gas and Consumable Fuels)
1,300
  
51,961
Rogers Communications (Media)
1,000
  
40,231
SNC-Lavalin Group (Construction and Engineering)
1,481
  
38,979
Suncor Energy (Oil, Gas and Consumable Fuels)
800
  
64,742
     
195,913
 

 
Shares
  
Value
France 18.4%
      
Essilor International (Health Care Equipment and Supplies)
424
  
$    42,636
Groupe Danone (Food Products)
841
  
106,697
LVMH Moet Hennessy Louis Vuitton (Textiles, Apparel and Luxury Goods)
667
  
66,200
PSA Peugeot Citroen (Automobiles)
869
  
53,990
Sanofi-Aventis (Pharmaceuticals)
1,266
  
123,548
Total (Oil, Gas and Consumable Fuels)
630
  
41,321
Unibail (Real Estate Investment Trusts)
396
  
68,971
Vallourec (Machinery)
93
  
111,806
Veolia Environnement (Multi-Utilities)
2,006
  
103,534
     
718,703
Germany 4.2%
      
Commerzbank (Commercial Banks)
2,753
  
99,940
SAP (Software)
301
  
63,415
     
163,355
 

_____________
See footnotes on page 29.

23

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman International Growth Portfolio  (continued)
 
 
Shares
  
Value
Greece 1.4%
      
OPAP (Hotels, Restaurants and Leisure)
1,510
  
$       54,669
       
Hong Kong 0.7%
      
Shun Tak Holdings (Real Estate Management and Development)
22,000
  
28,596
       
Ireland 2.1%
      
Elan (ADR)* (Pharmaceuticals)
2,300
  
38,410
Ryanair Holdings (ADR)* (Airlines)
800
  
42,168
     
80,578
Japan 15.0%
      
Credit Saison (Consumer Finance)
400
  
19,018
Daiichi Sankyo (Pharmaceuticals)
1,500
  
41,250
Eisai (Pharmaceuticals)
1,100
  
49,455
Japan Tobacco (Tobacco)
10
  
36,389
JSR (Chemicals)
1,500
  
38,068
JTEKT (Machinery)
1,000
  
19,399
Nintendo (Software)
400
  
67,341
Rakuten (Internet and Catalog Retail)
155
  
92,577
Sharp (Household Durables)
2,000
  
31,754
Shinsei Bank (Commercial Banks)
7,000
  
44,479
Sumitomo Realty & Development (Real Estate Management and Development)
2,000
  
49,553
Tokyo Electron (Semiconductors and Semiconductor Equipment)
800
  
56,210
Toyota Motor (Automobiles)
800
  
41,855
     
587,348
Mexico 3.6%
      
America Movil (Class L) (ADR) (Wireless Telecommunication Services)
2,000
  
66,520
Grupo Televisa (ADR) (Media)
3,800
  
73,378
     
139,898
Netherlands 5.6%
      
ASML Holding* (Semiconductors and Semiconductor Equipment)
2,574
  
52,047
Euronext (Diversified Financial Services)
905
  
84,611
Philips Electronics (Household Durables)
2,587
  
80,881
     
217,539
Norway 1.8%
      
Statoil (Oil, Gas and Consumable Fuels)
2,500
  
70,989
       
South Korea 3.4%
      
Hana Financial Group (Commercial Banks)
1,040
  
49,061
Samsung Electronics (Semiconductors and Semiconductor Equipment)
128
  
81,687
     
130,748
 
 
 
 
Shares
  
Value
Spain 1.0%
      
       
Banco Bilbao Vizcaya Argentaria (Commercial Banks)
1,888
  
$     38,894
       
Sweden 0.9%
      
Swedish Match* (Tobacco)
2,200
  
35,428
       
Switzerland 8.9%
      
Logitech International* (Computers and Peripherals)
1,975
  
76,142
Roche Holding (Pharmaceuticals)
429
  
70,850
Swatch Group (Textiles, Apparel and Luxury Goods)
1,500
  
52,310
UBS (Capital Markets)
820
  
89,684
Xstrata (Metals and Mining)
1,590
  
60,112
     
349,098
Taiwan 1.1%
      
Hon Hai Precision Industry (Electronic Equipment and Instruments)
7,000
  
43,104
       
United Kingdom 19.3%
      
ARM Holdings (Semiconductors and Semiconductor Equipment)
34,592
  
72,236
AstraZeneca (Pharmaceuticals)
1,577
  
94,575
BHP Billiton (Metals and Mining)
2,140
  
41,891
Boots Group (Food and Staples Retailing)
4,207
  
59,819
British Airways* (Airlines)
5,961
  
37,689
British Land (Real Estate Management and Development)
1,617
  
37,711
Carphone Warehouse Group (Specialty Retail)
16,162
  
94,719
Debenhams* (Multiline Retail)
9,339
  
32,467
easyJet* (Airlines)
2,828
  
20,124
EMI Group (Media)
15,913
  
89,240
Man Group (Capital Markets)
1,210
  
56,911
Reckitt Benckiser (Household Products)
1,176
  
43,854
Reed Elsevier (Media)
1,974
  
19,907
Standard Chartered (Commercial Banks)
1,978
  
48,214
Tesco (Food and Staples Retailing)
833
  
5,140
     
754,497
       
Total Investments 97.9% (Cost $3,497,127)
    
3,827,001
       
Other Assets Less Liabilities 2.1%
    
82,538
Net Assets 100.0%
    
$3,909,539
_____________
See footnotes on page 29.

24


 
 
 
Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Investment Grade Fixed Income Portfolio
 

 
Principal
Amount
  
Value
U.S. Government and Government Agency Securities 57.4%
      
US Government Securities 32.8%
      
US Treasury Bonds:
      
8.125%, 8/15/2021
$  15,000
  
$    19,342
5.375%, 2/15/2031
130,000
  
132,285
US Treasury Inflation-Protected
      
Securities 2%, 1/15/2016
40,598
  
38,782
US Treasury Notes:
      
3.25%, 1/15/2009
15,000
  
14,338
4.5%, 2/15/2009
90,000
  
88,604
4.875%, 5/15/2009
55,000
  
54,643
3.5%, 2/15/2010
185,000
  
175,273
4.875%, 4/30/2011
35,000
  
34,654
4.875%, 5/31/2011
15,000
  
14,852
4.25%, 8/15/2013
75,000
  
71,180
5.125%, 5/15/2016
85,000
  
84,927
     
728,880
Government Agency SecuritiesØ 12.7%
      
Fannie Mae:
      
5.4%, 4/13/2009
75,000
  
74,634
5.5%, 2/22/2011
90,000
  
89,177
Freddie Mac:
      
5.4%, 2/28/2011
45,000
  
44,582
5.2%, 3/5/2019
80,000
  
75,218
     
283,611
Government Agency Mortgage-Backed Securities ††Ø 11.9%
      
Fannie Mae:
      
7%, 7/1/2008
5,659
  
5,705
7%, 2/1/2012
3,192
  
3,218
8.5%, 9/1/2015
3,898
  
4,082
6.5%, 5/1/2017
15,595
  
15,826
5.5%, 2/1/2018
32,589
  
32,046
7%, 1/1/2032
14,108
  
14,460
7%, 5/1/2032
34,187
  
35,044
5.356%, 4/1/2036#
24,942
  
24,434
6%, 7/2006 TBA
95,000
  
93,516
Freddie Mac Gold:
      
6%, 11/1/2010
4,976
  
5,007
8%, 12/1/2023
3,024
  
3,190
5%, 7/2006 TBA (MDR)
30,000
  
28,022
     
264,550
       
Total US Government and Government Agency Securities (Cost $1,283,716)
    
1,277,041
       
Corporate Bonds 43.6%
      
Aerospace and Defense 0.7%
      
United Technologies 6.05%, 6/1/2036
15,000
  
14,806


 
Principal
Amount
  
Value
Beverages 0.5%
      
Anheuser-Busch 7.55%, 10/1/2030
$  10,000
  
$    11,631
       
Capital Markets 2.2%
      
Bear Stearns 5.7%, 11/15/2014
15,000
  
14,680
Goldman Sachs Group 5.35%, 1/15/2016
10,000
  
9,461
Lehman Brothers Holdings 5.75%, 5/17/2013
25,000
  
24,648
     
48,789
Chemicals 1.4%
      
E.I. du Pont de Nemours 6.875%, 10/15/2009
30,000
  
31,119
       
Commercial Banks 3.0%
      
Bank of America 6.25%, 4/15/2012
25,000
  
25,636
KeyCorp 5.418%, 6/2/2008#
20,000
  
20,042
US Bank 6.375%, 8/1/2011
10,000
  
10,303
Wells Fargo Bank 5.75%, 5/16/2016
10,000
  
9,854
     
65,835
Consumer Finance 2.6%
      
Capital One Bank 5%, 6/15/2009
30,000
  
29,405
Nissan Motor Acceptance 5.625%, 3/14/2011†
30,000
  
29,541
     
58,946
Diversified Financial Services 2.3%
      
Capital One Financial 5.5%, 6/1/2015
40,000
  
37,896
CIT Group 6%, 4/1/2036
10,000
  
9,194
Citigroup 5.875%, 2/22/2033
5,000
  
4,681
     
51,771
Diversified Telecommunication Services 4.9%
      
BellSouth 4.2%, 9/15/2009
35,000
  
33,392
Embarq 7.082%, 6/1/2016
15,000
  
14,944
Verizon Communications 5.35%, 2/15/2011
40,000
  
39,003
Verizon Global Funding 7.75%, 12/1/2030
20,000
  
21,632
     
108,971
Electric Utilities 3.2%
      
Commonwealth Edison 3.7%, 2/1/2008
15,000
  
14,534
Ohio Power 6%, 6/1/2016
15,000
  
14,819
Progress Energy:
      
7.75%, 3/1/2031
10,000
  
11,186
7%, 10/30/2031
5,000
  
5,160
San Diego Gas & Electric 6%, 6/1/2026
10,000
  
9,858
Tampa Electric 6.55%, 5/15/2036
15,000
  
15,109
     
70,666
Food and Staples Retailing 1.2%
      
Wal-Mart Stores 6.875%, 8/10/2009
25,000
  
25,907
       
Food Products 0.8%
      
Wm. Wrigley Jr. 4.65%, 7/15/2015
20,000
  
18,342
       
Health Care Providers and Services 3.5%
      
Aetna 5.75%, 6/15/2011
15,000
  
14,910
Humana 6.3%, 8/1/2018
20,000
  
19,529
UnitedHealth Group 3.3%, 1/30/2008
45,000
  
43,352
     
77,791
Hotels, Restaurants and Leisure 0.7%
      
Harrah’s Operating 6.5%, 6/1/2016
15,000
  
14,642

_____________
See footnotes on page 29.

25

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Investment Grade Fixed Income Portfolio (continued)


 
Principal
Amount
  
Value
Household Products 0.4%
      
Procter & Gamble 5.5%, 2/1/2034
$  10,000
  
$      9,247
       
Industrial Conglomerates 1.1%
      
General Electric Capital 5.5%, 4/28/2011
25,000
  
24,838
       
Insurance 1.5%
      
ACE INA Holdings 6.7%, 5/15/2036
15,000
  
14,429
Allstate 5.95%, 4/1/2036
10,000
  
9,220
Prudential Financial 5.9%, 3/17/2036
10,000
  
9,245
     
32,894
Media 1.7%
      
Comcast:
      
5.9%, 3/15/2016
20,000
  
19,250
6.45%, 3/15/2037
10,000
  
9,423
Viacom 6.25%, 4/30/2016†
10,000
  
9,725
     
38,398
Multi-Utilities 1.5%
      
Alabama Power 5.4%, 8/25/2009#
25,000
  
25,092
Southern California Edison 5%, 1/15/2016
10,000
  
9,321
     
34,413
Oil, Gas and Consumable Fuels 6.3%
      
ConocoPhillips Australia Funding
      
5.5%, 4/15/2013
40,000
  
39,483
Enterprise Products Partners 5%, 3/1/2015
20,000
  
18,092
Pemex Project Funding 8%, 11/15/2011
40,000
  
42,380
Valero Energy 6.875%, 4/15/2012
25,000
  
25,945
XTO Energy 5.65%, 4/1/2016
15,000
  
14,250
     
140,150


 
Principal
Amount
  
Value
  
Pharmaceuticals 0.2%
        
Abbott Laboratories 5.875%, 5/15/2016
$   5,000
  
$       4,966
  
         
Real Estate Management and Development 1.1%
        
ERP Operating 5.2%, 4/1/2013
25,000
  
24,002
  
         
Thrifts and Mortgage Finance 2.8%
        
Abbey National Capital Trust
        
8.963%, 12/29/2049#
10,000
  
12,166
  
Countrywide Funding 5.625%, 7/15/2009
40,000
  
39,827
  
Residential Capital 6.375%, 6/30/2010
10,000
  
9,872
  
     
61,865
  
Total Corporate Bonds (Cost $983,334)
    
969,989
  
         
Asset-Backed Securities†† 2.6% (Cost $56,369)
        
         
Electric Utilities 2.6%
        
Peco Energy Transition Trust 6.05%, 3/1/2009
56,389
  
56,544
  
         
Collateralized Mortgage Obligation†† 1.7% (Cost $38,854)
        
         
Commercial Banks 1.7%
        
Wells Fargo Bank 4.733%, 7/25/2034#
40,314
  
38,527
  
         
Total Investments 105.3% (Cost $2,362,273)
    
2,342,101
  
Other Assets Less Liabilities (5.3)%
    
(118,140
 ) 
Net Assets 100.0%
    
$2,223,961
  

_____________
See footnotes on page 29.


26


Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Large-Cap Value Portfolio

 
Shares
  
Value
Common Stocks 99.0%
      
Aerospace and Defense 7.5%
      
Honeywell International
4,000
  
$  161,200
United Technologies
3,000
  
190,260
     
351,460
Capital Markets 3.1%
      
Bank of New York
4,500
  
144,900
       
Chemicals 10.7%
      
Dow Chemical
3,600
  
140,508
E.I. du Pont de Nemours
3,100
  
128,960
Praxair
2,500
  
135,000
Rohm and Haas
2,000
  
100,240
     
504,708
Commercial Banks 2.6%
      
U.S. Bancorp
4,000
  
123,520
       
Communications Equipment 2.7%
      
Juniper Networks*
8,000
  
128,000
       
Computers and Peripherals 2.9%
      
International Business Machines
1,800
  
138,276
       
Diversified Financial Services 6.7%
      
Bank of America
3,500
  
168,350
JPMorgan Chase
3,500
  
147,000
     
315,350
Food and Staples Retailing 3.6%
      
Costco Wholesale
3,000
  
171,540
       
Health Care Equipment and Supplies 7.7%
      
Baxter International
3,500
  
128,660
Boston Scientific*
5,500
  
92,620
Medtronic
3,000
  
140,760
     
362,040
Independent Power Producers and Energy Traders 3.1%
      
AES*
8,000
  
147,600
       
Industrial Conglomerates 2.8%
      
General Electric
4,000
  
131,840
       
Insurance 9.3%
      
Prudential Financial
2,000
  
155,400
St. Paul Travelers Companies
3,500
  
156,030
UnumProvident
7,000
  
126,910
     
438,340




 
Shares or
Principal
Amount
  
Value
  
Machinery 3.2%
        
Caterpillar
2,000
 shs.
$  148,960
  
         
Multiline Retail 2.9%
        
J.C. Penney
2,000
  
135,020
  
         
Oil, Gas and Consumable Fuels 10.0%
        
Chevron
2,600
  
161,356
  
Valero Energy
2,500
  
166,300
  
Williams Companies
6,100
  
142,496
  
     
470,152
  
Pharmaceuticals 2.8%
        
Wyeth
3,000
  
133,230
  
         
Road and Rail 5.9%
        
CSX
2,000
  
140,880
  
Union Pacific
1,500
  
139,440
  
     
280,320
  
Specialty Retail 2.6%
        
The Gap
7,000
  
121,800
  
         
Thrifts and Mortgage Finance 3.4%
        
Washington Mutual
3,500
  
159,530
  
         
Tobacco 3.1%
        
Altria Group
2,000
  
146,860
  
         
Wireless Telecommunication Services 2.4%
        
Sprint Nextel
5,600
  
111,944
  
Total Common Stocks (Cost $3,693,338)
    
4,665,390
  
         
Repurchase Agreement 1.2%
        
State Street Bank 4.15%, dated 6/30/2006, maturing 7/3/2006, in the amount of $56,019, collateralized by: $60,000 US Treasury Notes 6.5%, 10/15/2006, with a fair market value of $61,050 (Cost $56,000)
$56,000
  
56,000
  
Total Investments 100.2% (Cost $3,749,338)
    
4,721,390
  
Other Assets Less Liabilities (0.2)%
    
(7,384
 ) 
Net Assets 100.0%
    
$4,714,006
  

_____________
See footnotes on page 29.

27

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Smaller-Cap Value Portfolio

 
Shares
  
Value
Common Stocks 98.0%
      
Aerospace and Defense 2.6%
      
Cubic
300,000
  
$5,883,000
       
Airlines 3.3%
      
Continental Airlines*
250,000
  
7,450,000
       
Beverages 1.8%
      
Constellation Brands (Class A)*
160,000
  
4,000,000
       
Biotechnology 3.4%
      
Keryx Biopharmaceuticals
239,700
  
3,426,511
PDL BioPharma*
230,000
  
4,233,150
     
7,659,661
Chemicals 7.2%
      
Cabot
150,000
  
5,178,000
Hercules*
410,000
  
6,256,600
Minerals Technologies
90,000
  
4,680,000
     
16,114,600
Commercial Banks 1.7%
      
South Financial Group
141,000
  
3,721,695
       
Commercial Services and Supplies 6.7%
      
Brink’s
90,000
  
5,076,900
Korn/Ferry International*
250,000
  
4,897,500
Waste Connections*
135,000
  
4,914,000
     
14,888,400
Communications Equipment 2.2%
      
F5 Networks*
90,000
  
4,808,250
       
Computers and Peripherals 1.5%
      
Hypercom*
350,000
  
3,272,500
       
Containers and Packaging 1.2%
      
Smurfit-Stone Container*
240,000
  
2,624,400
       
Diversified Consumer Services 2.8%
      
Sotheby’s Holdings (Class A)*
240,000
  
6,300,000
       
Electrical Equipment 3.7%
      
EnerSys*
290,000
  
6,061,000
General Cable*
63,800
  
2,233,000
     
8,294,000
Electronic Equipment and Instruments 3.7%
      
Symbol Technologies
256,000
  
2,762,240
Trimble Navigation*
120,000
  
5,361,000
     
8,123,240
Energy Equipment and Services 5.8%
      
Hanover Compressor*
350,000
  
6,573,000
Universal Compression Holdings*
100,000
  
6,297,000
     
12,870,000


 
Shares
  
Value
Food and Staples Retailing 0.8%
      
Central European Distribution*
67,800
  
$1,699,407
       
Food Products 1.8%
      
Bunge
80,000
  
4,020,000
       
Health Care Providers and Services 5.0%
      
Apria Healthcare Group*
180,000
  
3,402,000
HealthSouth*
1,017,500
  
3,983,513
WellCare Health Plans*
73,900
  
3,624,795
     
11,010,308
Hotels, Restaurants and Leisure 7.9%
      
Landry’s Restaurants
110,000
  
3,569,500
Penn National Gaming*
110,000
  
4,267,450
Ruby Tuesday
230,000
  
5,614,300
WMS Industries*
150,000
  
4,108,500
     
17,559,750
Household Durables 1.9%
      
Harman International Industries
50,000
  
4,268,500
       
Insurance 8.3%
      
W.R. Berkley
150,000
  
5,119,500
Endurance Specialty Holdings
116,000
  
3,712,000
Hanover Insurance Group
110,000
  
5,220,600
Infinity Property and Casualty
110,000
  
4,506,700
     
18,558,800
Machinery 5.5%
      
Mueller Industries
190,000
  
6,275,700
Terex*
60,000
  
5,922,000
     
12,197,700
Media 2.1%
      
Cadmus Communications
269,450
  
4,678,999
       
Multiline Retail 1.9%
      
Fred’s
320,000
  
4,275,200
       
Oil, Gas and Consumable Fuels 2.0%
      
Peabody Energy
80,000
  
4,460,000
       
Pharmaceuticals 2.1%
      
Andrx*
200,000
  
4,640,000
       
Road and Rail 2.2%
      
J.B. Hunt Transport Services
200,000
  
4,981,000
       
Semiconductors and Semiconductor Equipment 3.4%
      
Credence Systems*
650,000
  
2,278,250
Skyworks Solutions*
726,000
  
4,011,150
Varian Semiconductor Equipment Associates*
39,300
  
1,281,770
     
7,571,170

_____________
See footnotes on page 29.

28

Seligman Portfolios, Inc.
Portfolios of Investments (unaudited)
June 30, 2006

Seligman Smaller-Cap Value Portfolio (continued)

 
Shares or
Principal
Amount
  
Value
  
Specialty Retail 5.5%
        
Blockbuster (Class A)
600,000.
shs.
$    2,988,000
  
Claire’s Stores
200,000
  
5,102,000
  
Pacific Sunwear of California*
225,000
  
4,027,500
  
     
12,117,500
  
Total Common Stocks (Cost $175,947,930)
    
218,048,080
  
         
Fixed Time Deposit 2.2%
        
Citibank N.A., Nassau 5.1%, 7/3/2006 (Cost $4,889,000)
$4,889,000
  
4,889,000
  
         
Total Investments 100.2% (Cost $180,836,930)
    
222,937,080
  
Other Assets Less Liabilities (0.2)%
    
(542,589
 )
Net Assets 100.0%
    
$222,394,491
  
 
__________
*
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.
‡
The notes are exchangeable at maturity for value of the common stock of five companies in the home building industry. The maturity value of each stock is limited to 115% of the stock’s price at the date of purchase of the notes.
ø
Securities issued by these agencies are neither guaranteed nor insured by the US Government.
#
Floating rate security; the interest rate is reset periodically. The interest rate disclosed reflects the rate in effect at June 30, 2006.
ADR - American Depositary Receipts.
FDR - Fiduciary Depositary Receipts.
MDR - Mortgage dollar rolls.
TBA - To be announced.
See Notes to Financial Statements.
 
 
29
 
Seligman Portfolios, Inc.
Statements of Assets and Liabilities (unaudited)
June 30, 2006

 
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
$11,454,099
  
$              —
  
$6,895,606
  
$     52,755,406
  
$ 7,996,969
  
Options purchased
—
  
—
  
261,960
  
68,850
  
—
  
Repurchase agreements
345,000
  
2,579,000
  
—
  
—
  
—
  
Other short-term holdings
—
  
10,604,128
  
85,345
  
—
  
—
  
Total investments*
11,799,099
  
13,183,128
  
7,242,911
  
52,824,256
  
7,996,969
  
Cash denominated in US dollars**
309
  
459
  
1,000
  
—
  
202,630
  
Cash denominated in foreign currencies†
—
  
—
  
—
  
797,818
  
254,472
  
Receivable for securities sold
700,023
  
—
  
72,211
  
2,640,821
  
205,996
  
Dividends and interest receivable
6,061
  
1,410
  
7,489
  
25,758
  
4,812
  
Receivable from associated companies
2,142
  
—
  
—
  
—
  
—
  
Receivable for Capital Stock sold
2,049
  
—
  
—
  
12,241
  
—
  
Receivable from the Manager (Note 4)
—
  
—
  
—
  
—
  
3,941
  
Other
129
  
140
  
91
  
752
  
3,947
  
Total Assets
12,509,812
  
13,185,137
  
7,323,702
  
56,301,646
  
8,672,767
  
Liabilities:
                    
Payable for securities purchased
523,057
  
—
  
18,709
  
998,803
  
275,890
  
Management fee payable
3,897
  
12,645
  
2,409
  
34,229
  
6,866
  
Distribution and service (12b-1) fees payable
3,188
  
—
  
—
  
8,266
  
1,020
  
Payable for Capital Stock redeemed
1,051
  
85
  
16
  
1,524
  
1,140
  
Bank overdraft
—
  
—
  
36,344
  
577,403
  
—
  
Accrued expenses and other
25,532
  
13,479
  
14,979
  
37,163
  
25,486
  
Total Liabilities
556,725
  
26,209
  
72,457
  
1,657,388
  
310,402
  
Net Assets
$11,953,087
  
$13,158,928
  
$7,251,245
  
$     54,644,258
  
$ 8,362,365
  
Composition of Net Assets:
                    
Capital Stock, $0.001 at par
$            881
  
$       13,161
  
$          658
  
$              3,761
  
$           608
  
Additional paid-in capital
20,352,339
  
13,145,767
  
9,241,974
  
84,145,284
  
20,032,269
  
Undistributed/accumulated net investment
                    
income (loss)
(30,709
 ) 
—
  
120,060
  
(249,562
 ) 
(69,885
 ) 
Accumulated net realized loss
(8,852,153
 ) 
—
  
(2,012,688
 ) 
(27,291,944
 )
(11,431,390
 ) 
Net unrealized appreciation (depreciation)
                    
of investments
482,729
  
—
  
(98,759
 ) 
(1,963,281
 ) 
(186,536
 ) 
Net unrealized appreciation on translation of assets
                    
and liabilities denominated in foreign currencies and
                    
forward currency contracts
—
  
—
  
—
  
—
  
17,299
  
Net Assets
$11,953,087
  
$13,158,928
  
$7,251,245
  
$    54,644,258
  
$ 8,362,365
  
Class 1
$  7,002,515
  
$13,158,928
  
$7,251,245
  
$    42,070,707
  
$ 6,185,967
  
Class 2
$  4,950,572
          
$    12,573,551
  
$ 2,176,398
  
Shares of Capital Stock Outstanding:
                    
Class 1
512,912
  
13,161,302
  
658,190
  
2,884,607
  
448,834
  
Class 2
367,578
          
876,567
  
159,320
  
                     
Net Asset Value per Share:
                    
Class 1
$13.65
  
$1.00
  
$11.02
  
$14.58
  
$13.78
  
Class 2
$13.47
          
$14.34
  
$13.66
  
                     
__________
                    
  * Cost of total investments are as follows:
$11,316,370
  
$13,183,128
  
$7,341,670
  
$   54,786,848
  
$ 8,161,800
  
** Includes restricted cash as follows:
$            300
  
$            200
  
$       1,000
  
—
  
—
  
  † Cost of foreign currencies as follows:
—
  
—
  
—
  
$        798,619
  
$    258,810
  
See Notes to Financial Statements.
                    


30

Seligman Portfolios, Inc.
Statements of Assets and Liabilities (unaudited)
June 30, 2006


 
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
$  3,827,001
  
$2,342,101
  
$4,665,390
  
$218,048,080
  
Repurchase agreements
—
  
—
  
56,000
  
—
  
Other short-term holdings
—
  
—
  
—
  
4,889,000
  
Total investments*
3,827,001
  
2,342,101
  
4,721,390
  
222,937,080
  
Cash denominated in US dollars**
328,287
  
500
  
214
  
758
  
Cash denominated in foreign currencies†
2,887
  
—
  
—
  
—
  
Receivable for securities sold
22,592
  
—
  
—
  
74,362
  
Dividends and interest receivable
4,808
  
29,976
  
6,286
  
693
  
Receivable for Capital Stock sold
—
  
—
  
—
  
333,822
  
Receivable from the Manager (Note 4)
5,623
  
2,168
  
—
  
—
  
Unrealized appreciation on forward currency contracts
2,899
  
—
  
—
  
—
  
Other
46
  
34
  
51
  
2,434
  
Total Assets
4,194,143
  
2,374,779
  
4,727,941
  
223,349,149
  
Liabilities:
                
Payable for securities purchased
260,450
  
121,489
  
—
  
533,137
  
Management fee payable
3,079
  
780
  
3,078
  
179,432
  
Distribution and service (12b-1) fees payable
—
  
—
  
—
  
18,254
  
Payable for Capital Stock redeemed
32
  
50
  
43
  
112,772
  
Bank overdraft
—
  
13,738
  
—
  
—
  
Unrealized depreciation on forward currency contracts
346
  
—
  
—
  
—
  
Accrued expenses and other
20,697
  
14,761
  
10,814
  
111,063
  
Total Liabilities
284,604
  
150,818
  
13,935
  
954,658
  
Net Assets
$ 3,909,539
  
$2,223,961
  
$4,714,006
  
$222,394,491
  
Composition of Net Assets:
                
Capital Stock, $0.001 at par
$           313
  
$          257
  
$          390
  
$         12,461
  
Additional paid-in capital
5,249,948
  
2,236,903
  
4,295,706
  
144,221,549
  
Undistributed/accumulated net investment income (loss)
(6,469
 ) 
182,498
  
46,867
  
(870,671
 ) 
Undistributed/accumulated net realized gain (loss)
(1,664,876
 ) 
(175,525
 ) 
(601,009
 ) 
36,931,002
  
Net unrealized appreciation (depreciation) of investments
249,165
  
(20,172
 ) 
972,052
  
42,100,150
  
Net unrealized appreciation on translation of assets and liabilities denominated in
foreign currencies and forward currency contracts
81,458
  
—
  
—
  
—
  
Net Assets
$ 3,909,539
  
$2,223,961
  
$4,714,006
  
$222,394,491
  
Class 1
$ 3,909,539
  
$2,223,961
  
$4,714,006
  
$185,051,843
  
Class 2
            
$  37,342,648
  
Shares of Capital Stock Outstanding:
                
Class 1
313,025
  
256,510
  
390,091
  
10,358,007
  
Class 2
            
2,102,682
  
Net Asset Value per Share:
                
Class 1
$12.49
  
$8.67
  
$12.08
  
$17.87
  
Class 2
            
$17.76
  
                 
__________
                
  * Cost of investments are as follows:
$3,497,127
  
$2,362,273
  
$3,749,338
  
$180,836,930
  
** Includes restricted cash as follows:
—
  
$          500
  
—
  
$              500
  
  † Cost of foreign currencies as follows:
$       2,873
  
—
  
—
  
—
  
See Notes to Financial Statements.
                
 
 
31
 
Seligman Portfolios, Inc.
Statements of Operations (unaudited)
For the Six Months Ended June 30, 2006

 
Seligman
Capital
Portfolio
  
Seligman
Cash
Management
Portfolio
  
Seligman
Common
Stock
Portfolio
  
Seligman
Communications
and Information
Portfolio
  
Seligman
Global
Technology
Portfolio
  
Investment Income:
                    
Dividends*
$  39,178
  
$         —
  
$  68,051
  
$       70,467
  
$   21,228
  
Interest
7,574
  
318,130
  
5,008
  
21,540
  
6,897
  
Total Investment Income
46,752
  
318,130
  
73,059
  
92,007
  
28,125
  
Expenses:
                    
Management fees
25,989
  
27,951
  
15,834
  
226,560
  
46,056
  
Shareholder account services
13,248
  
—
  
—
  
21,250
  
13,132
  
Custody and related services
9,234
  
7,279
  
7,995
  
28,985
  
29,020
  
Auditing fees
8,358
  
7,070
  
7,545
  
25,467
  
14,535
  
Distribution and service (12b-1) fees — Class 2
6,428
  
—
  
—
  
16,193
  
1,898
  
Shareholder reports and communications
3,594
  
499
  
414
  
3,352
  
3,212
  
Legal fees
2,434
  
2,450
  
2,045
  
5,189
  
2,098
  
Directors’ fees and expenses
2,082
  
2,094
  
2,025
  
2,629
  
2,038
  
Miscellaneous
1,165
  
1,446
  
841
  
4,587
  
843
  
Total Expenses Before Reimbursement
72,532
  
48,789
  
36,699
  
334,212
  
112,832
  
Reimbursement of expenses (Note 4)
—
  
—
  
—
  
—
  
(23,427
 ) 
Total Expenses After Reimbursement
72,532
  
48,789
  
36,699
  
334,212
  
89,405
  
Net Investment Income (Loss)
(25,780
 ) 
269,341
  
36,360
  
(242,205
 ) 
(61,280
 ) 
Net Realized and Unrealized Gain (Loss) on Investments, Options Written and Foreign Currency Transactions:
                    
Net realized gain on investments
752,388
  
—
  
316,903
  
4,144,983
  
803,724
  
Net realized gain on foreign currency transactions
—
  
—
  
—
  
—
  
27,187
  
Net realized gain on options written
—
  
—
  
20,702
  
19,054
  
—
  
Net change in unrealized appreciation/depreciation of investments
(796,278
 )
—
  
(240,290
 ) 
(1,001,298
 ) 
(604,246
 ) 
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
—
  
—
  
—
  
—
  
29,665
  
Net Gain (Loss) on Investments, Options Written and Foreign Currency Transactions
(43,890
 ) 
—
  
97,315
  
3,162,739
  
256,330
  
Increase (Decrease) in Net Assets from Operations
$(69,670
 ) 
$269,341
  
$133,675
  
$ 2,920,534
  
$195,050
  
                     
__________
                    
* Net of foreign tax withheld as follows:
—
  
—
  
$       399
  
$      26,423
  
$    1,795
  
See Notes to Financial Statements.
                    


32

Seligman Portfolios, Inc.
Statements of Operations (unaudited)
For the Six Months Ended June 30, 2006
 


 
Seligman
International
Growth
Portfolio
  
Seligman
Investment Grade
Fixed Income
Portfolio
  
Seligman
Large-Cap
Value
Portfolio
  
Seligman
Smaller-Cap
Value
Portfolio
  
Investment Income:
                
Dividends*
$ 39,298
  
$          —
  
$  47,085
  
$     488,092
  
Interest
957
  
68,692
  
594
  
25,269
  
Total Investment Income
40,255
  
68,692
  
47,679
  
513,361
  
Expenses:
                
Management fees
20,101
  
5,171
  
19,608
  
1,182,819
  
Shareholder account services
—
  
—
  
—
  
23,387
  
Custody and related services
45,130
  
13,646
  
1,419
  
42,504
  
Auditing fees
9,037
  
6,566
  
6,927
  
49,650
  
Distribution and service (12b-1) fees — Class 2
—
  
—
  
—
  
35,646
  
Shareholder reports and communications
353
  
330
  
368
  
6,498
  
Legal fees
1,752
  
1,658
  
1,824
  
17,996
  
Directors’ fees and expenses
1,982
  
1,996
  
1,991
  
4,695
  
Miscellaneous
482
  
480
  
595
  
17,753
  
Total Expenses Before Reimbursement
78,837
  
29,847
  
32,732
  
1,380,948
  
Reimbursement of expenses (Note 4)
(38,635
 ) 
(18,859
 ) 
—
  
—
  
Total Expenses After Reimbursement
40,202
  
10,988
  
32,732
  
1,380,948
  
Net Investment Income (Loss)
53
  
57,704
  
14,947
  
(867,587
 )
Net Realized and Unrealized Gain (Loss) on Investments and Foreign
Currency Transactions:
                
Net realized gain (loss) on investments
426,048
  
(73,612
 ) 
221,238
  
17,616,625
  
Net realized gain on foreign currency transactions
22,906
  
—
  
—
  
—
  
Net change in unrealized appreciation/depreciation of investments
(365,558
 ) 
(25,604
 ) 
(59,452
 ) 
33,074
  
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
175,657
  
—
  
—
  
—
  
Net Gain (Loss) on Investments and Foreign Currency Transactions
259,053
  
(99,216
 ) 
161,786
  
17,649,699
  
Increase (Decrease) in Net Assets from Operations
$259,106
  
$(41,512
 ) 
$176,733
  
$16,782,112
  
                 
__________
                
* Net of foreign tax withheld as follows:
$   4,970
  
—
  
—
  
$         3,562
  
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, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Operations:
                        
Net investment income (loss)
$     (25,780
 ) 
$     (81,432
 ) 
$     269,341
  
$     301,663
  
$     36,360
  
$     89,584
  
Net realized gain on investments
752,388
  
2,014,808
  
—
  
—
  
316,903
  
960,502
  
Net realized gain on options written
—
  
—
  
—
  
—
  
20,702
  
58,922
  
Net change in unrealized appreciation/depreciation of investments
(796,278
 )
(360,164
 ) 
—
  
—
  
(240,290
 ) 
(985,632
 ) 
Increase (Decrease) in Net Assets From Operations
(69,670
 ) 
1,573,212
  
269,341
  
301,663
  
133,675
  
123,376
  
Distributions to Shareholders:
                        
Net investment income — Class 1
—
  
—
  
(269,341
 ) 
(301,663
 ) 
—
  
(143,752
 ) 
Capital Share Transactions:
                        
Proceeds from sale of shares:
                        
Class 1
401,940
  
648,138
  
1,626,446
  
22,528,542
  
202,823
  
992,550
  
Class 2
386,774
  
520,068
  
—
  
—
  
—
  
—
  
Investment of dividends — Class 1
—
  
—
  
269,341
  
301,663
  
—
  
143,752
  
Total
788,714
  
1,168,206
  
1,895,787
  
22,830,205
  
202,823
  
1,136,302
  
Cost of shares redeemed:
                        
Class 1
(1,609,668
 )
(3,216,959
 ) 
(3,891,330
 ) 
(9,504,002
 ) 
(1,304,354
 ) 
(3,689,103
 ) 
Class 2
(516,101
 ) 
(1,370,650
 ) 
—
  
—
  
—
  
—
  
Total
(2,125,769
 ) 
(4,587,609
 ) 
(3,891,330
 ) 
(9,504,002
 ) 
(1,304,354
 ) 
(3,689,103
 ) 
Increase (Decrease) in Net Assets From
Capital Share Transactions
(1,337,055
 ) 
(3,419,403
 ) 
(1,995,543
 ) 
13,326,203
  
(1,101,531
 ) 
(2,552,801
 ) 
Increase (Decrease) in Net Assets
(1,406,725
 ) 
(1,846,191
 ) 
(1,995,543
 ) 
13,326,203
  
(967,856
 ) 
(2,573,177
 ) 
Net Assets:
                        
Beginning of period
13,359,812
  
15,206,003
  
15,154,471
  
1,828,268
  
8,219,101
  
10,792,278
  
End of Period*
$11,953,087
  
$13,359,812
  
$13,158,928
  
$15,154,471
  
$7,251,245
  
$8,219,101
  
                         
                         
__________
                        
* Including undistributed net investment income (net of   accumulated net investment loss) as follows:
$     (30,709
 ) 
$       (4,929
 ) 
—
  
—
  
$   120,060
  
$    83,700
  
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, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Operations:
                        
Net investment income (loss)
$   (242,205
 ) 
$   (499,605
 ) 
$   (61,280
 ) 
$ (136,748
 ) 
$           53
  
$     (8,429
 ) 
Net realized gain on investments
4,144,983
  
8,134,445
  
803,724
  
1,260,856
  
426,048
  
408,932
  
Net realized gain on options written
19,054
  
—
  
—
  
—
  
—
  
—
  
Net realized gain (loss) from foreign currency transactions
—
  
—
  
27,187
  
18,374
  
22,906
  
(39,609
 ) 
Net change in unrealized appreciation/depreciation of investments
(1,001,298
 ) 
(3,683,330
 ) 
(604,246
 ) 
(467,685
 ) 
(365,558
 ) 
81,214
  
Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts
—
  
—
  
29,665
  
(151,367
 ) 
175,657
  
(277,026
 ) 
Increase in Net Assets From Operations
2,920,534
  
3,951,510
  
195,050
  
523,430
  
259,106
  
165,082
  
Capital Share Transactions:
                        
Proceeds from sale of shares:
                        
Class 1
495,437
  
2,895,060
  
202,036
  
335,944
  
1,007,121
  
1,102,588
  
Class 2
1,860,705
  
1,316,607
  
1,443,255
  
597,041
  
—
  
—
  
Total
2,356,142
  
4,211,667
  
1,645,291
  
932,985
  
1,007,121
  
1,102,588
  
Cost of shares redeemed:
                        
Class 1
(7,836,664
 ) 
(17,669,176
 ) 
(798,185
 ) 
(2,546,604
 ) 
(1,139,223
 ) 
(1,234,304
 ) 
Class 2
(1,539,044
 ) 
(2,638,953
 ) 
(1,208,406
 ) 
(1,037,266
 ) 
—
  
—
  
Total
(9,375,708
 ) 
(20,308,129
 ) 
(2,006,591
 ) 
(3,583,870
 ) 
(1,139,223
 ) 
(1,234,304
 ) 
Decrease in Net Assets From
Capital Share Transactions
(7,019,566
 ) 
(16,096,462
 ) 
(361,300
 ) 
(2,650,885
 ) 
(132,102
 ) 
(131,716
 ) 
Increase (Decrease) in Net Assets
(4,099,032
 ) 
(12,144,952
 ) 
(166,250
 ) 
(2,127,455
 ) 
127,004
  
33,366
  
Net Assets:
                        
Beginning of period
58,743,290
  
70,888,242
  
8,528,615
  
10,656,070
  
3,782,535
  
3,749,169
  
End of Period*
$54,644,258
  
$58,743,290
  
$8,362,365
  
$8,528,615
  
$3,909,539
  
$3,782,535
  
                         
__________                         
* Net of accumulated net investment loss as follows: 
$   (249,562
 ) 
$       (5,057
 ) 
$   (69,885
 ) 
$     (3,893
 ) 
$     (6,469
 ) 
$     (4,967
 ) 
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, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Six Months
Ended
June 30, 2006
  
Year
Ended
December 31,
2005
  
Operations:
                        
Net investment income (loss)
$ 57,704
  
$ 122,579
  
$14,947
  
$34,875
  
$(867,587
 ) 
$(1,017,638
 ) 
Net realized gain (loss) on investments
(73,612
 ) 
(84,983
 ) 
221,238
  
429,238
  
17,616,625
  
20,382,569
  
Net change in unrealized appreciation/depreciation of investments
(25,604
 ) 
(8,871
 ) 
(59,452
 )
58,369
  
33,074
  
(33,615,826
 ) 
Increase (Decrease) in Net Assets From Operations
(41,512
 ) 
28,725
  
176,733
  
522,482
  
16,782,112
  
(14,250,895
 ) 
Distributions to Shareholders:
                        
Net investment income:
                        
Class 1
—
  
(165,952
 ) 
—
  
(48,933
 ) 
—
  
(1,235,756
 ) 
Class 2
—
  
—
  
—
  
—
  
—
  
(58,214
 ) 
Total
—
  
(165,952
 ) 
—
  
(48,933
 ) 
—
  
(1,293,970
 ) 
Net realized long-term gain on investments:
                        
Class 1
—
  
—
  
—
  
—
  
—
  
(20,089,240
 ) 
Class 2
—
  
—
  
—
  
—
  
—
  
(3,564,658
 ) 
Total
—
  
—
  
—
  
—
  
—
  
(23,653,898
 ) 
Decrease in Net Assets From Distributions
—
  
(165,952
 ) 
—
  
(48,933
 ) 
—
  
(24,947,868
 ) 
Capital Share Transactions:
                        
Proceeds from sale of shares:
                        
Class 1
178,867
  
792,326
  
285,568
  
1,470,806
  
11,749,409
  
18,071,480
  
Class 2
—
  
—
  
—
  
—
  
3,359,692
  
10,160,903
  
Investment of dividends:
                        
Class 1
—
  
165,952
  
—
  
48,933
  
—
  
1,235,756
  
Class 2
—
  
—
  
—
  
—
  
—
  
58,214
  
Investment of gain distributions:
                        
Class 1
—
  
—
  
—
  
—
  
—
  
20,089,240
  
Class 2
—
  
—
  
—
  
—
  
—
  
3,564,658
  
Total
178,867
  
958,278
  
285,568
  
1,519,739
  
15,109,101
  
53,180,251
  
Cost of shares redeemed:
                        
Class 1
(671,594
 ) 
(1,623,823
 ) 
(937,918
 ) 
(2,145,389
 ) 
(40,423,420
 ) 
(74,254,204
 ) 
Class 2
—
  
—
  
—
  
—
  
(4,034,365
 ) 
(7,758,428
 ) 
Total
(671,594
 ) 
(1,623,823
 ) 
(937,918
 ) 
(2,145,389
 ) 
(44,457,785
 ) 
(82,012,632
 ) 
Decrease in Net Assets From Capital Share Transactions
(492,727
 ) 
(665,545
 ) 
(652,350
 ) 
(625,650
 ) 
(29,348,684
 ) 
(28,832,381
 ) 
Decrease in Net Assets
(534,239
 ) 
(802,772
 ) 
(475,617
 ) 
(152,101
 ) 
(12,566,572
 ) 
(68,031,144
 ) 
Net Assets:
                        
Beginning of period
2,758,200
  
3,560,972
  
5,189,623
  
5,341,724
  
234,961,063
  
302,992,207
  
End of Period*
$2,223,961
  
$2,758,200
  
$4,714,006
  
$5,189,623
  
$222,394,491
  
$234,961,063
  
__________
                        
* Including undistributed net investment income (net of accumulated net investment loss) as follows:
$   182,498
  
$   123,967
  
$     46,867
  
$     31,920
  
$     (870,671
 ) 
$         (3,094
 ) 
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 (“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. Fixed income securities not listed on an exchange or security market are valued 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. Equity securities not listed on an exchange or security market, or equity securities for which there are no last sales price, are valued at the mean of the most recent bid and asked prices or are valued by 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 Fund’s Board of Directors (the “Board”) 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.
     
 
 
Other securities for which market quotations are not readily available (or are otherwise no longer valid or reliable) 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. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the prices used by other mutual funds to determine net asset value or the price that may be realized upon the actual sale of the security. 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.
 
 
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, 2006, 12b-1 fees were the only class-specific expenses.
     
 
h.
Repurchase Agreements — The Portfolios may enter into repurchase agreements. Generally, securities received as collateral subject to repurchase agreements are deposited with the Portfolio’s custodians and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price, plus accrued interest, at all times. On a daily basis, the market value of securities held as collateral for repurchase agreements is monitored to ensure the existence of the proper level of collateral.
     
 
i.
Aggregate Mandatory Exchangeable Notes — The Portfolios may purchase notes created by a counterparty, typically an investment bank. The notes bear interest at a fixed or floating rate. At maturity, the notes must be exchanged for an amount based on the value of one or more equity securities (“Index Stocks”) of third party issuers. The exchange value may be limited to an amount less than the actual value of the Index Stocks at the maturity date. Any difference between the exchange amount and the original cost of the notes will be a gain or loss.
   
   
   
   


38

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

 
j.
Securities Purchased and Sold on a TBA Basis — The Portfolios may purchase or sell securities (typically mortgage-backed securities) on a to-be-announced (TBA) basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Unsettled TBA commitments are valued at fair value in accordance with the procedures for security valuation described above.
     
 
k.
Mortgage Dollar Rolls — The Portfolios may enter into mortgage dollar roll transactions using TBAs in which a Portfolio sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Each mortgage dollar roll is treated as a sale and purchase transaction with any gain or loss recognized at the time of each sale. The Portfolio may be exposed to market or credit risk if the price of the security changes unfavorably or the counterparty fails to perform under the terms of the agreement.
     
 
l.
Distributions to Shareholders — Dividends and other distributions to shareholders are recorded on ex-dividend dates.
     
 
m.
Restricted Cash — Restricted cash represents deposits that are being held by banks as collateral for letters of credit issued in connection with the Fund’s insurance policies.

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%, 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, 2006, the management fees for Global Technology Portfolio, International Growth Portfolio, Large-Cap Value Portfolio, and Smaller-Cap Value Portfolio were equal to 1.00%, 1.00%, 0.80%, 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 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, 2006, are disclosed in the Statements of Operations, and such amounts receivable from the Manager at June 30, 2006 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, 2006, fees incurred under the Plan aggregated $6,428, or 0.25% per annum; $16,193, or 0.25% per annum; $1,898 or 0.15% per annum; and $35,646 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

39

Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)
 
Companies. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid. The following accumulated balances at December 31, 2005 included each Portfolio’s proportionate share of the accumulated balance of six other portfolios of the Fund that were closed as of May 31, 2005, and were paid to the participating director in January 2006:

 
Portfolio
Amount
  
Portfolio
Amount
  
Portfolio
Amount
 
Capital
$7,688
  
Communications and Information
$7,908
  
Investment Grade
$7,442
 
Cash Management
7,429
  
Global Technology
6,086
  
Large-Cap Value
4,189
 
Common Stock
7,922
  
International Growth
7,789
  
Smaller-Cap Value
4,849
 
 
As of June 30, 2006, no directors were participating in the deferred compensation arrangement.
 
5.
Purchases and Sales of Securities — Purchases and sales of portfolio securities, excluding US Government obligations and short-term investments, for the six months ended June 30, 2006, were as follows:
 
 
Portfolio
Purchases
Sales
  
Portfolio
Purchases
Sales
 
Capital
$12,224,433
$13,638,721
  
International Growth
$3,531,281
$3,670,151
 
Common Stock
2,947,757
3,994,338
  
Investment Grade
5,196,801
4,759,045
 
Communications and Information
49,469,115
57,799,890
  
Large-Cap Value
281,980
974,852
 
Global Technology
9,262,972
9,616,633
  
Smaller-Cap Value
35,277,489
70,317,828
 
 
For the six months ended June 30, 2006, purchases and sales of US Government obligations were $0 and $29,627, respectively, for the Common Stock Portfolio, and $7,449,722 and $7,845,345, 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 any Portfolio. 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 investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. The tax character of the distributions paid during the six months ended June 30, 2006 and the year ended December 31, 2005, is the same for financial reporting purposes. Further, the cost of investments also can differ for federal income tax purposes.
   
 
The tax information presented is based on operating results for the six months ended June 30, 2006, and will vary from the final tax information as of the Fund’s year end.
   
 
At June 30, 2006, the cost of investments for federal income tax purposes for each Portfolio was as follows:
 
 
Portfolio
Tax Basis Cost
  
Portfolio
Tax Basis Cost
 
Capital
$11,346,593
  
International Growth
$    3,503,876
 
Common Stock
7,379,886
  
Investment Grade
  2,362,221
 
Communications and Information
54,999,840
  
Large-Cap Value
  3,749,338
 
Global Technology
8,291,123
  
Smaller-Cap Value
180,840,452
 
 
The tax basis cost of certain Portfolios was greater than the cost for financial reporting purposes primarily due to the tax deferral of losses on wash sales.
   
 
At June 30, 2006, 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
$    927,854
  
$    464,134
  
$     2,429,226
 ** 
$      350,045
 ** 
 
Gross unrealized depreciation of portfolio securities
(475,348
 ) 
(601,109
 ) 
(4,605,495
 )** 
(644,199
 )** 
 
Net unrealized appreciation (depreciation) of
                
 
portfolio securities
452,506
  
(136,975
 ) 
(2,176,269
 )** 
(294,154
 )** 
 
Net unrealized depreciation on foreign currencies and forward currency contracts
—
  
—
  
—
  
    (4,406
 ) 
 
Undistributed ordinary income
—
  
88,779
  
—
  
 —
  
 
Current period net realized gain
761,275
  
—
  
3,894,270
 * 
  841,869
  
 
Capital loss carryforward
(9,583,206
 ) 
(2,320,636
 ) 
(30,973,222
 ) 
(12,143,936
 ) 
 
Total accumulated losses
$(8,369,425
 ) 
$(2,368,832
 ) 
$  (29,255,221
 ) 
$(11,600,627
 ) 
  __________                 
 
See footnotes on page 41.
                
 
 
40
 
Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)

   
International
Growth
  
Investment
Grade
  
Large-Cap
Value
  
Smaller-Cap
Value
 
Gross unrealized appreciation of portfolio securities
$ 399,509
 ** 
$1,882
  
$1,193,161
  
$60,423,411
  
 
Gross unrealized depreciation of portfolio securities
(76,384
 )** 
(22,002
 ) 
(221,109
 ) 
(18,326,783
 ) 
 
Net unrealized appreciation (depreciation) of portfolio securities
323,125
 ** 
(20,120
 ) 
972,052
  
42,096,628
  
 
Net unrealized depreciation on foreign currencies and
                
 
forward currency contracts
(1,804
 ) 
—
  
—
  
—
  
 
Undistributed ordinary income
—
  
182,159
  
46,867
  
4,745,523
 † 
 
Current period net realized gain (loss)
457,258
  
(100,119
 ) 
221,238
  
—
  
 
Undistributed net realized gain/(capital loss carryforward)
(2,115,385
 ) 
(75,119
 ) 
(822,247
 ) 
31,318,330
  
 
Total accumulated earnings (losses)
$(1,336,806
 )
$(13,199
 ) 
$417,910
  
$78,160,481
  
                   
       __________
 
*
Includes the effect of options written.
 
**
Includes the effect of foreign currency translations.
 
†
Includes net realized short-term gain.
 
 
At December 31, 2005, certain 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. There is no assurance that any Portfolio will be able to utilize all of its capital loss carryforwards before they expire. 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
 
2009
$2,947,645
  
—
  
$   5,959,723
  
$ 7,093,668
  
$1,208,517
  
—
  
—
 
2010
  6,635,561
  
$1,954,075
  
   19,435,297
  
4,941,506
  
 906,868
  
—
  
$172,410
 
2011
            —
  
    366,561
  
     5,578,202
  
108,762
  
—
  
—
  
  649,837
 
2012
    —
  
  —
  
   —
  
—
  
—
  
$ 9,586
  
—
 
2013
                   
 65,533
  
—
 
Total
$9,583,206
  
$ 2,320,636
  
$ 30,973,222
  
$12,143,936
  
$2,115,385
  
$75,119
  
$822,247
 
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 2007, but is renewable annually with the consent of the participating banks. For the six months ended June 30, 2006, the Fund did not borrow from the credit facility.
   
8.
Outstanding Forward Exchange Currency Contracts — At June 30, 2006, 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)
  
 
International Growth Portfolio
                    
 
Bought:
                    
 
British pounds
33,802
  
61,203
  
7/3/06
  
62,507
  
$1,304
  
 
British pounds
10,701
  
19,769
  
7/5/06
  
19,787
  
18
  
 
Canadian dollars
7,370
  
6,639
  
7/5/06
  
6,602
  
(37
 ) 
 
Euros
66,248
  
83,770
  
7/3/06
  
84,734
  
964
  
 
Hong Kong dollars
19,629
  
2,527
  
7/3/06
  
2,527
  
—
  
 
Japanese yen
1,970,463
  
17,243
  
7/5/06
  
17,219
  
(24
 ) 
 
Norwegian kroner
132,924
  
21,049
  
7/3/06
  
21,354
  
305
  
 
Swedish kronor
22,807
  
3,097
  
7/3/06
  
3,169
  
72
  
 
Swiss francs
14,119
  
11,313
  
7/3/06
  
11,549
  
236
  
 
Total
                
$2,838
  
 
Sold:
                    
 
Euros
3,253
  
4,161
  
7/5/06
  
4,161
  
—
  
 
Japanese yen
1,783,169
  
15,297
  
7/5/06
  
15,582
  
(285
 ) 
 
Total
                
$ (285
 ) 
 
 
41
 
Seligman Portfolios, Inc.
Notes to Financial Statements (unaudited)
 
9.
Capital Stock Transactions — At June 30, 2006, 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; 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  
 
Cash Management
  
Common Stock
   
Class 1
  
Class 2
  
Portfolio
  
Portfolio
   
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
 
Sale of shares
28,051
  
50,636
  
27,746
  
41,264
  
1,626,446
  
22,528,542
  
18,121
  
92,731
  
 
Investment of dividends
—
  
—
  
—
  
—
  
269,341
  
301,663
  
—
  
13,104
  
 
Total
28,051
  
50,636
  
27,746
  
41,264
  
1,895,787
  
22,830,205
  
18,121
  
105,835
  
 
Shares redeemed
(112,951)
  
(254,499)
  
(36,755)
  
(108,619)
  
(3,891,330)
  
(9,504,002)
  
(115,864)
  
(345,881)
  
 
Increase (decrease) in shares
(84,900)
  
(203,863)
  
(9,009)
  
(67,355)
  
(1,995,543)
  
13,326,203
  
(97,743)
  
(240,046)
  
 
   
Communications and Information Portfolio
  
Global Technology Portfolio
   
Class 1
  
Class 2
  
Class 1
  
Class 2
   
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
 
Sale of shares
32,317
  
223,357
  
124,875
  
105,675
  
13,926
  
26,408
  
98,868
  
51,647
  
 
Shares redeemed
(521,761)
  
(1,388,527)
  
(103,446)
  
(210,254)
  
(54,906)
  
(210,010)
  
(79,903)
  
(88,691)
  
 
Increase (decrease) in shares
(489,444)
  
(1,165,170)
  
21,429
  
(104,579)
  
(40,980)
  
(183,602)
  
18,965
  
(37,044)
  
 
   
International Growth Portfolio
  
Investment Grade Fixed Income Portfolio
  
Large-Cap Value Portfolio
   
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
 
Sale of shares
80,971
  
103,884
  
20,347
  
84,888
  
23,639
  
135,875
  
 
Investment of dividends
—
  
—
  
—
  
19,031
  
—
  
4,218
  
 
Total
80,971
  
103,884
  
20,347
  
103,919
  
23,639
  
140,093
  
 
Shares redeemed
(92,340)
  
(117,148)
  
(77,208)
  
(174,730)
  
(78,335)
  
(197,004)
  
 
Decrease in shares
(11,369)
  
(13,264)
  
(56,861)
  
(70,811)
  
(54,696)
  
(56,911)
  
 
   
Smaller-Cap Value Portfolio
   
Class 1
  
Class 2
   
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
Six Months
Ended
6/30/06
  
Year
Ended
12/31/05
  
 
Sale of shares
654,708
  
1,005,656
  
183,799
  
568,414
  
 
Investment of dividends
—
  
74,443
  
—
  
3,524
  
 
Investment of gain distributions
—
  
1,210,195
  
—
  
215,778
  
 
Total
654,708
  
2,290,294
  
183,799
  
787,716
  
 
Shares redeemed
(2,255,231
 ) 
(4,168,017
 ) 
(227,509
 ) 
(436,623
 ) 
 
Increase (decrease) in shares
(1,600,523
 ) 
(1,877,723
 ) 
(43,710
 ) 
351,093
  
 
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.


42

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

 
11.
Options Written — Transactions in options written during the six months ended June 30, 2006, were as follows:

 
Common Stock Portfolio
Shares Subject to Call/Put
   
Premium
 
Options outstanding, December 31, 2005
4,500
  
$  14,464
 
Options written
30,300
  
40,435
 
Options expired
(16,100)
  
(17,986)
 
Options terminated in closing purchase transactions
(1,600)
  
(9,238)
 
Options exercised
(17,100)
   
(27,675)
 
Options outstanding, June 30, 2006
—
   
$         —
         
 
Communications and Information Portfolio
      
 
Options outstanding, December 31, 2005
—
  
—
 
Options written
13,500
  
$19,266
 
Options expired
(12,300)
  
(17,304)
 
Options terminated in closing purchase transactions
(1,200)
   
(1,962)
 
Options outstanding, June 30, 2006
—
   
$         —
 
12.
Other Matters — In late 2003, the Manager conducted an extensive internal review in response to public announcements concerning frequent trading in shares of open-end mutual funds. As of September 2003, the Manager had one arrangement that permitted frequent trading in the Seligman mutual 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 mutual funds. All three had already been terminated prior to the end of September 2002.
   
 
The results of the Manager’s internal review were presented to the Independent Directors of all the Seligman registered investment companies (the “Seligman Funds”). In order to resolve matters with the Independent Directors relating to the four arrangements that permitted frequent trading, the Manager, in May 2004, made payments to three mutual funds and agreed to waive a portion of its management fee with respect to another mutual fund (none of which was a Portfolio of Seligman Portfolios, Inc.).
   
 
Since February 2004, the Manager has been in discussions with the New York staff of the Securities and Exchange Commission ("SEC") and the Office of the New York Attorney General (“Attorney General”) in connection with their review of frequent trading in certain of the Seligman Funds. No late trading is involved. This review was apparently stimulated by the Manager’s voluntary public disclosure of the foregoing arrangements in January 2004. In March 2005, negotiations to settle the matter were initiated by the New York staff of the SEC. After several months of negotiations, tentative agreement was reached, both with the New York staff of the SEC and the Attorney General, on the financial terms of a settlement. However, settlement discussions with the Attorney General ended when the Attorney General sought to impose operating conditions on the Manager that were unacceptable to the Manager, would have applied in perpetuity and were not requested or required by the SEC. Subsequently, the New York staff of the SEC indicated that, in lieu of moving forward under the terms of the tentative financial settlement, the staff was considering recommending to the Commissioners of the SEC the instituting of a formal action against the Manager and the Distributor (together, “Seligman”).
   
 
Seligman believes that any action would be both inappropriate and unnecessary, especially in light of the fact that Seligman previously resolved the underlying issue with the Independent Directors of the Seligman Funds and made recompense to the affected Seligman Funds.
   
 
Immediately after settlement discussions with the Attorney General ended, the Attorney General issued subpoenas to certain of the Seligman Funds and their directors. The subpoenas seek various Board materials and information relating to the deliberations of the Independent Directors as to the advisory fees paid by the Seligman Funds to the Manager. The Manager has objected to the Attorney General’s seeking of such information and, on September 6, 2005, filed suit in federal district court seeking to enjoin the Attorney General from pursuing a fee inquiry. Seligman believes that the Attorney General’s inquiry is improper because Congress has vested exclusive regulatory oversight of investment company advisory fees in the SEC.
   
 
At the end of September 2005, the Attorney General indicated that it intends to file an action at some time in the future alleging, in substance, that the Manager permitted other persons to engage in frequent trading other than the arrangements described above and, as a result, the prospectus disclosure of the Seligman Funds is and has been misleading. Seligman believes any such action would be without merit.
   
 
Any resolution of these matters with regulatory authorities may include, but not be limited to, sanctions, penalties, injunctions regarding Seligman, restitution to mutual fund shareholders or changes in procedures. Any penalties or restitution will be paid by Seligman and not by the Seligman Funds.
   
 
Seligman does not believe that the foregoing possible actions or any threatened legal actions should have a material adverse impact on the Manager, the Distributor or the Seligman Funds; however, there can be no assurance of this, or that these matters and any related publicity will not result in reduced demand for shares of the Seligman Funds or other adverse consequences.
   
13.
Recently Issued Accounting Pronouncement — In July 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), ”Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109.” FIN 48 provides guidance for how uncertain tax positions, if any, should be recognized, measured, presented and disclosed in the financial statements. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Fund is currently evaluating the impact, if any, of applying the various provisions of FIN 48.



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
 

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
   
June 30, 2006
   
2005
   
2004
   
2003
   
2002
   
2001
   
Net Asset Value, Beginning of Period
   
$13.78
   
$12.25
   
$11.28
   
$8.29
   
$12.37
   
$24.68
  
Income (Loss) from Investment Operations:
                          
Net investment loss
    
(0.02
)
  
(0.06
)
  
(0.05
)
  
(0.03
)
  
(0.05
)
  
(0.06
)
Net realized and unrealized gain (loss) on investments
     
(0.11
) 
 
1.59
     
1.02
     
3.02
     
(4.03
) 
 
(4.01
)
Total from Investment Operations
     
(0.13
)
  
1.53
     
0.97
     
2.99
     
(4.08
)
  
(4.07
)
Less Distributions:
Dividends from net investment income
    
—
    
—
    
—
    
—
    
—
    
(0.02
)
Distributions from net realized capital gain
     
—
     
—
     
—
     
—
     
—
     
(8.22
)
Total Distributions
     
—
     
—
    
—
     
—
     
—
     
(8.24
)
Net Asset Value, End of Period
  
 
$13.65
   
 
$13.78
   
 
$12.25
  
 
$11.28
   
 
$8.29
   
 
$12.37
  
Total Return
       
(0.94
)%
  
12.49
%
  
8.60
%
  
36.07
%
  
(32.98
)%
  
(15.97
)%
Ratios/Supplemental Data: 
Net assets, end of period (000s omitted)
  
 
$7,003
  
 
$8,235
  
 
$9,821
  
$
12,486
  
$
11,833
  
$
24,349
  
Ratio of expenses to average net assets
     
1.02
 %†   
1.03
%
  
0.92
%
  
0.82
%
  
0.80
%
  
0.61
%
Ratio of net investment loss to average net assets
     
(0.30
 )%†   
(0.50
)%
  
(0.46
)%
  
(0.33
)%
  
(0.47
)%
  
(0.31
)%
Portfolio turnover rate
    
95.92
%
  
173.99
%
  
213.08
%
  
140.59
%
  
129.07
%
  
215.16
%
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
)%
 
__________
ø  The Manager, at its discretion, reimbursed expenses for certain periods presented.
†  Annualized.
See Notes to Financial Statements.


44

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Capital Portfolio (continued)

CLASS 2
 
   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
   
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$13.61
  
$
12.13
  
$
11.20
  
$
8.25
  
$
12.34
  
$
24.68
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.04
)
  
(0.09
)
  
(0.08
)
  
(0.05
)
  
(0.07
)
  
(0.11
)
Net realized and unrealized gain (loss) on investments
    
(0.10
)
  
1.57
    
1.01
    
3.00
    
(4.02
)
  
(4.01
)
Total from Investment Operations
    
(0.14
)
  
1.48
    
0.93
    
2.95
    
(4.09
)
  
(4.12
)
Less Distributions:
                                      
Distribution from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(8.22
)
Net Asset Value, End of Period
  
 
$13.47
  
$
13.61
  
$
12.13
  
$
11.20
  
$
8.25
  
$
12.34
  
Total Return
    
(1.03
)%
  
12.20
%
  
8.30
%
  
35.76
%
  
(33.14
)%
  
(16.18
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$4,951
  
$
5,125
  
$
5,385
  
$
4,353
  
$
2,891
  
$
3,792
  
Ratio of expenses to average net assets
    
1.27
 %†  
1.28
%
  
1.17
%
  
1.07
%
  
1.05
%
  
0.85
%
Ratio of net investment loss to average net assets
    
(0.55
 )%†   
(0.75
)%
  
(0.71
)%
  
(0.58
)%
  
(0.72
)%
  
(0.55
)%
Portfolio turnover rate
    
95.92
%
  
173.99
%
  
213.08
%
  
140.59
%
  
129.07
%
  
215.16
%
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

   
Six Months
Ended
  
 Year Ended December 31,
   
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
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
    
0.019
    
0.024
    
0.006
    
0.004
    
0.010
    
0.038
  
Total from Investment Operations
    
0.019
    
0.024
    
0.006
    
0.004
    
0.010
    
0.038
  
Less Distributions:
                                      
Dividends from net investment income
    
(0.019
)
  
(0.024
)
  
(0.006
)
  
(0.004
)
  
(0.010
)
  
(0.038
)
Net Asset Value, End of Period
  
 
$1.000
  
$
1.000
  
$
1.000
  
$
1.000
  
$
1.000
  
$
1.000
  
Total Return
    
1.94
%
  
2.41
%
  
0.62
%
  
0.38
%
  
1.00
%
  
3.88
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$13,159
  
$
15,154
  
$
1,828
  
$
4,034
  
$
7,870
  
$
12,211
  
Ratio of expenses to average net assets
    
0.70
 %†   
0.70
%
  
0.70
%
  
0.70
%
  
0.69
%
  
0.07
%
Ratio of net investment income to average net assets
    
3.86
 %†   
2.71
%
  
0.56
%
  
0.39
%
  
0.98
%
  
3.82
%
Without management fee waiver
                                      
and/or expense reimbursement:ø
                                      
Ratio of expenses to average net assets
          
0.73
%
  
1.14
%
  
0.83
%
        
0.72
%
Ratio of net investment income to average net assets
          
2.68
%
  
0.12
%
  
0.26
%
        
3.17
%


________________
ø  The Manager, at its discretion, waived management fees and/or reimbursed expenses for certain periods presented.
† Annualized.
See Notes to Financial Statements.

45

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Common Stock Portfolio

CLASS 1
 

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$10.87
  
$
10.84
  
$
9.72
  
$
7.80
  
$
10.84
  
$
14.23
  
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.05
    
0.10
    
0.13
    
0.08
    
0.08
    
0.08
  
Net realized and unrealized gain (loss) on investments
    
0.10
    
0.12
    
1.10
    
1.97
    
(3.02
)
  
(1.85
)
Total from Investment Operations
    
0.15
    
0.22
    
1.23
    
2.05
    
(2.94
)
  
(1.77
)
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.19
)
  
(0.11
)
  
(0.13
)
  
(0.10
)
  
(0.15
)
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(1.47
)
Total Distributions
    
—
    
(0.19
)
  
(0.11
)
  
(0.13
)
  
(0.10
)
  
(1.62
)
Net Asset Value, End of Period
  
 
$11.02
  
$
10.87
  
$
10.84
  
$
9.72
  
$
7.80
  
$
10.84
  
Total Return
    
1.38
%
  
2.03
%
  
12.65
%
  
26.30
%
  
(27.16
)%
  
(12.24
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$7,251
  
$
8,219
  
$
10,792
  
$
12,297
  
$
12,931
  
$
23,756
  
Ratio of expenses to average net assets
    
0.93
 %†   
0.86
%
  
0.69
%
  
0.73
%
  
0.60
%
  
0.59
%
Ratio of net investment income to average net assets
    
0.92
 %†   
0.95
%
  
1.30
%
  
0.92
%
  
0.88
%
  
0.59
%
Portfolio turnover rate
    
38.47
%
  
70.36
%
  
42.68
%
  
127.26
%
  
131.95
%
  
64.45
%

__________
† Annualized.
See Notes to Financial Statements.

46

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Communications and Information Portfolio

CLASS 1

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$13.93
  
$
12.92
  
$
11.62
  
$
8.05
  
$
12.59
  
$
14.82
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.06
)
  
(0.10
)
  
(0.02
)
  
(0.07
)
  
(0.07
)
  
(0.07
)
Net realized and unrealized gain (loss) on
                                      
investments and foreign currency transactions
    
0.71
    
1.11
    
1.32
    
3.64
    
(4.47
)
  
0.80
  
Total from Investment Operations
    
0.65
    
1.01
    
1.30
    
3.57
    
(4.54
)
  
0.73
  
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(2.96
)
Net Asset Value, End of Period
  
 
$14.58
  
$
13.93
  
$
12.92
  
$
11.62
  
$
8.05
  
$
12.59
  
Total Return
    
4.67
%
  
7.82
%
  
11.19
%
  
44.35
%
  
(36.06
)%
  
5.34
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$42,071
  
$
47,010
  
$
58,646
  
$
62,903
  
$
53,769
  
$
113,424
  
Ratio of expenses to average net assets
    
1.05
 % †  
1.10
%
  
1.00
%
  
1.01
%
  
0.98
%
  
0.93
%
Ratio of net investment loss to average net assets
    
(0.75
 )%†  
(0.77
)%
  
(0.15
)%
  
(0.78
)%
  
(0.76
)%
  
(0.45
)%
Portfolio turnover rate
    
84.46
%
  
133.04
%
  
127.69
%
  
105.53
%
  
91.37
%
  
130.94
%

CLASS 2

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$13.72
  
$
12.76
  
$
11.51
  
$
7.99
  
$
12.53
  
$
14.80
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.07
)
  
(0.13
)
  
(0.05
)
  
(0.10
)
  
(0.10
)
  
(0.11
)
Net realized and unrealized gain (loss) on
                                      
investments and foreign currency transactions
    
0.69
    
1.09
    
1.30
    
3.62
    
(4.44
)
  
0.80
  
Total from Investment Operations
    
0.62
    
0.96
    
1.25
    
3.52
    
(4.54
)
  
0.69
  
Less Distributions:
                                      
Distribution from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(2.96
)
Net Asset Value, End of Period
  
 
$14.34
  
$
13.72
  
$
12.76
  
$
11.51
  
$
7.99
  
$
12.53
  
Total Return
    
4.52
%
  
7.52
%
  
10.86
%
  
44.06
%
  
(36.23
)%
  
5.08
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$12,574
  
$
11,733
  
$
12,243
  
$
11,280
  
$
7,544
  
$
16,537
  
Ratio of expenses to average net assets
    
1.30
 % †  
1.35
%
  
1.25
%
  
1.26
%
  
1.23
%
  
1.18
%
Ratio of net investment loss to average net assets
    
(1.00
 )%†   
(1.02
)%
  
(0.40
)%
  
(1.03
)%
  
(1.01
)%
  
(0.70
)%
Portfolio turnover rate
    
84.46
%
  
133.04
%
  
127.69
%
  
105.53
%
  
91.37
%
  
130.94
%
 
__________
† Annualized.
See Notes to Financial Statements.

47

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Global Technology Portfolio

CLASS 1

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$13.56
  
$
12.54
  
$
12.06
  
$
8.86
  
$
12.96
  
$
20.14
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.10
)
  
(0.19
)
  
(0.13
)
  
(0.11
)
  
(0.11
)
  
(0.14
)
Net realized and unrealized gain (loss) on investments
    
0.23
    
1.40
    
0.51
    
2.98
    
(4.32
)
  
(4.06
)
Net realized and unrealized gain (loss)
                                      
on foreign currency transactions
    
0.09
    
(0.19
)
  
0.10
    
0.33
    
0.33
    
(0.25
)
Total from Investment Operations
    
0.22
    
1.02
    
0.48
    
3.20
    
(4.10
)
  
(4.45
)
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(2.73
)
Net Asset Value, End of Period
  
 
$13.78
  
$
13.56
  
$
12.54
  
$
12.06
  
$
8.86
  
$
12.96
  
Total Return
    
1.62
%
  
8.13
%
  
3.98
%
  
36.12
%
  
(31.64
)%
  
(22.05
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$6,186
  
$
6,641
  
$
8,446
  
$
10,047
  
$
9,361
  
$
18,533
  
Ratio of expenses to average net assets
    
1.90
 % †  
1.90
%
  
1.90
%
  
1.61
%
  
1.40
%
  
1.40
%
Ratio of net investment loss to average net assets
    
(1.29
 )%†   
(1.53
)%
  
(1.10
)%
  
(1.14
)%
  
(1.06
)%
  
(0.87
)%
Portfolio turnover rate
    
109.50
%
  
155.29
%
  
146.96
%
  
188.00
%
  
144.18
%
  
160.75
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
2.41
 % †   
2.49
%
  
2.39
%
  
2.39
%
  
1.80
%
  
1.61
%
Ratio of net investment loss to average net assets
    
(1.80
 )%†   
(2.12
)%
  
(1.59
)%
  
(1.92
)%
  
(1.46
)%
  
(1.08
)%

CLASS 2


   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$13.45
  
$
12.46
  
$
12.00
  
$
8.82
  
$
12.93
  
$
20.14
  
Income (Loss) from Investment Operations:
                                      
Net investment loss
    
(0.11
)
  
(0.21
)
  
(0.15
)
  
(0.13
)
  
(0.13
)
  
(0.17
)
Net realized and unrealized gain (loss) on investments
    
0.23
    
1.39
    
0.51
    
2.98
    
(4.31
)
  
(4.06
)
Net realized and unrealized gain (loss)
                                      
on foreign currency transactions
    
0.09
    
(0.19
)
  
0.10
    
0.33
    
0.33
    
(0.25
)
Total from Investment Operations
    
0.21
    
0.99
    
0.46
    
3.18
    
(4.11
)
  
(4.48
)
Less Distributions:
                                      
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(2.73
)
Net Asset Value, End of Period
  
 
$13.66
  
$
13.45
  
$
12.46
  
$
12.00
  
$
8.82
  
$
12.93
  
Total Return
    
1.56
%
  
7.95
%
  
3.83
%
  
36.05
%
  
(31.79
)%
  
(22.20
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$2,176
  
$
1,888
  
$
2,210
  
$
2,470
  
$
1,598
  
$
3,219
  
Ratio of expenses to average net assets
    
2.05
 % †   
2.05
%
  
2.05
%
  
1.76
%
  
1.55
%
  
1.54
%
Ratio of net investment loss to average net assets
    
(1.44
 )%†  
(1.68
)%
  
(1.25
)%
  
(1.29
)%
  
(1.21
)%
  
(1.02
)%
Portfolio turnover rate
    
109.50
%
  
155.29
%
  
146.96
%
  
188.00
%
  
144.18
%
  
160.75
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
2.56
 % †   
2.64
%
  
2.54
%
  
2.54
%
  
1.95
%
  
1.75
%
Ratio of net investment loss to average net assets
    
(1.95
 )%†   
(2.27
)%
  
(1.74
)%
  
(2.07
)%
  
(1.61
)%
  
(1.23
)%


__________
ø The Manager, at its discretion, reimbursed expenses.
† Annualized.
See Notes to Financial Statements.

48

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

International Growth Portfolio

CLASS 1

   
Six Months
Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$11.66
  
$
11.10
  
$
8.97
  
$
6.72
  
$
8.05
  
$
10.65
  
Income (Loss) from Investment Operations:
                                      
Net investment income (loss)
    
—
 #   
(0.03
)
  
(0.04
)
  
0.05
    
0.04
    
0.03
  
Net realized and unrealized gain (loss) on investments
    
0.22
    
1.53
    
1.79
    
1.41
    
(2.13
)
  
(2.43
)
Net realized and unrealized gain (loss)
                                      
on foreign currency transactions
    
0.61
    
(0.94
)
  
0.42
    
0.79
    
0.76
    
(0.20
)
Total from Investment Operations
    
0.83
    
0.56
    
2.17
    
2.25
    
(1.33
)
  
(2.60
)
Less Distributions:
                                      
Dividends from net investment income
    
—
    
—
    
(0.04
)
  
—
    
—
    
—
  
Net Asset Value, End of Period
  
 
$12.49
  
$
11.66
  
$
11.10
  
$
8.97
  
$
6.72
  
$
8.05
  
Total Return
    
7.12
%
  
5.04
%
  
24.19
%
  
33.48
%
  
(16.52
)%
  
(24.41
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$3,910
  
$
3,783
  
$
3,749
  
$
3,490
  
$
3,315
  
$
4,793
  
Ratio of expenses to average net assets
    
2.00
 %†   
2.00
%
  
2.00
%
  
1.64
%
  
1.40
%
  
1.40
%
Ratio of net investment income (loss) to
                                      
average net assets
    
0.00
 %†   
(0.24
)%
  
(0.40
)%
  
0.67
%
  
0.49
%
  
0.34
%
Portfolio turnover rate
    
89.45
%
  
189.00
%
  
213.83
%
  
285.08
%
  
183.86
%
  
199.09
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
3.92
 % †   
5.05
%
  
4.08
%
  
3.45
%
  
1.96
%
  
1.80
%
Ratio of net investment loss to average net assets
    
(1.92
 )%†   
(3.29
)%
  
(2.48
)%
  
(1.14
)%
  
(0.07
)%
  
(0.06
)%
_____________
# Less than + or - $0.005 per share.
ø  The Manager, at its discretion, reimbursed expenses.
† Annualized.
See Notes to Financial Statements.

49

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Investment Grade Fixed Income Portfolio

CLASS 1

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$8.80
  
$
9.27
  
$
10.85
  
$
10.80
  
$
10.25
  
$
10.22
  
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.23
    
0.34
    
0.34
    
0.34
    
0.42
    
0.57
  
Net realized and unrealized gain (loss) on investments
    
(0.36
)
  
(0.26
)
  
(0.07
)
  
0.17
    
0.58
    
(0.01
)
Total from Investment Operations
    
(0.13
)
  
0.08
    
0.27
    
0.51
    
1.00
    
0.56
  
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.55
)
  
(0.91
)
  
(0.46
)
  
(0.45
)
  
(0.53
)
Distributions from net realized capital gain
    
—
    
—
    
(0.94
)
  
—
    
—
    
—
  
Total Distributions
    
—
    
(0.55
)
  
(1.85
)
  
(0.46
)
  
(0.45
)
  
(0.53
)
Net Asset Value, End of Period
  
 
$8.67
  
$
8.80
  
$
9.27
  
$
10.85
  
$
10.80
  
$
10.25
  
Total Return
    
(1.48
)%
  
0.95
%
  
2.41
%
  
4.72
%
  
9.83
%
  
5.52
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$2,224
  
$
2,758
  
$
3,561
  
$
6,025
  
$
9,067
  
$
7,103
  
Ratio of expenses to average net assets
    
0.85
 %†   
0.85
%
  
0.85
%
  
0.85
%
  
0.82
%
  
0.63
%
Ratio of net investment income to average net assets
    
4.46
 %†   
3.67
%
  
3.13
%
  
3.08
%
  
3.94
%
  
5.35
%
Portfolio turnover rate
    
504.40
%
  
596.99
%
  
184.46
%
  
445.98
%
  
291.98
%
  
146.08
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
    
2.31
 %†   
1.70
%
  
1.11
%
  
0.91
%
        
0.76
%
Ratio of net investment income to average net assets
    
3.00
 %†  
2.82
%
  
2.87
%
  
3.02
%
        
5.22
%

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

50

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Large-Cap Value Portfolio

CLASS 1

   
Six Months Ended
  
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$11.67
  
$
10.65
  
$
9.27
  
$
7.02
  
$
10.46
  
$
11.59
  
Income (Loss) from Investment Operations:
                                      
Net investment income
    
0.04
    
0.07
    
0.09
    
0.11
    
0.10
    
0.09
  
Net realized and unrealized gain (loss) on investments
    
0.37
    
1.06
    
1.41
    
2.27
    
(3.43
)
  
(1.06
)
Total from Investment Operations
    
0.41
    
1.13
    
1.50
    
2.38
    
(3.33
)
  
(0.97
)
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.11
)
  
(0.12
)
  
(0.13
)
  
(0.11
)
  
(0.11
)
Distributions from net realized capital gain
    
—
    
—
    
—
    
—
    
—
    
(0.05
)
Total Distributions
    
—
    
(0.11
)
  
(0.12
)
  
(0.13
)
  
(0.11
)
  
(0.16
)
Net Asset Value, End of Period
  
 
$12.08
  
$
11.67
  
$
10.65
  
$
9.27
  
$
7.02
  
$
10.46
  
Total Return
    
3.51
%
  
10.63
%
  
16.25
%
  
33.91
%
  
(31.90
)%
  
(8.28
)%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$4,714
  
$
5,190
  
$
5,342
  
$
5,456
  
$
4,692
  
$
7,708
  
Ratio of expenses to average net assets
    
1.34
 %†   
1.34
%
  
1.26
%
  
1.18
%
  
1.16
%
  
0.83
%
Ratio of net investment income to average net assets
    
0.61
 %†   
0.65
%
  
0.89
%
  
1.34
%
  
1.12
%
  
1.13
%
Portfolio turnover rate
    
5.72
%
  
27.35
%
  
15.09
%
  
16.60
%
  
21.83
%
  
28.17
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                      
1.29
%
        
1.10
%
Ratio of net investment income to average net assets
                      
1.23
%
        
0.86
%

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

51

Seligman Portfolios, Inc.
Financial Highlights (unaudited)

Smaller-Cap Value Portfolio

CLASS 1

   
Six Months Ended
 Year Ended December 31,
Per Share Data:
  
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Net Asset Value, Beginning of Period
  
 
$16.67
  
$
19.40
  
$
16.20
  
$
10.87
  
$
13.04
  
$
10.58
  
Income (Loss) from Investment Operations:
                                      
Net investment income (loss)
    
(0.07
)
  
(0.07
)
  
0.08
    
(0.05
)
  
(0.06
)
  
(0.03
)
Net realized and unrealized gain (loss) on
                                      
investments and foreign currency transactions
    
1.27
    
(0.71
)
  
3.15
    
5.48
    
(1.94
)
  
2.52
  
Total from Investment Operations
    
1.20
    
(0.78
)
  
3.23
    
5.43
    
(2.00
)
  
2.49
  
Less Distributions:
                                      
Dividends from net investment income
    
—
    
(0.11
)
  
—
    
—
    
—
    
—
  
Distributions from net realized capital gain
    
—
    
(1.84
)
  
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Total Distributions
    
—
    
(1.95
)
  
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Net Asset Value, End of Period
  
 
$17.87
  
$
16.67
  
$
19.40
  
$
16.20
  
$
10.87
  
$
13.04
  
Total Return
    
7.20
%
  
(3.98
)%
  
19.95
%
  
49.94
%
  
(15.37
)%
  
23.52
%
Ratios/Supplemental Data:
                                      
Net assets, end of period (000s omitted)
  
 
$185,052
  
$
199,357
  
$
268,410
  
$
214,525
  
$
103,770
  
$
100,090
  
Ratio of expenses to average net assets
    
1.14
 % †   
1.14
%
  
1.14
%
  
1.16
%
  
1.18
%
  
1.19
%
Ratio of net investment income (loss) to
                                      
average net assets
    
(0.70
 )%†   
(0.37
)%
  
0.47
%
  
(0.42
)%
  
(0.51
)%
  
(0.29
)%
Portfolio turnover rate
    
14.83
%
  
23.01
%
  
45.24
%
  
18.31
%
  
56.74
%
  
29.99
%
Without expense reimbursement:ø
                                      
Ratio of expenses to average net assets
                                  
1.22
%
Ratio of net investment loss to average net assets
                                  
(0.32
)%

CLASS 2

 
Six Months Ended
  
 Year Ended December 31,
  
5/1/01* to
  
Per Share Data:
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
12/31/01
  
Net Asset Value, Beginning of Period
 
$16.59
  
$
19.26
  
$
16.13
  
$
10.85
  
$
13.04
  
$
10.78
  
Income (Loss) from Investment Operations:
                                    
Net investment income (loss)
  
(0.08
)
  
(0.10
)
  
0.05
    
(0.08
)
  
(0.08
)
  
(0.03
)
Net realized and unrealized gain (loss) on investments and foreign currency transactions
  
1.25
    
(0.70
)
  
3.11
    
5.46
    
(1.94
)
  
2.32
  
Total from Investment Operations
  
1.17
    
(0.80
)
  
3.16
    
5.38
    
(2.02
)
  
2.29
  
Less Distributions:
                                    
Dividends from net investment income
  
—
    
(0.03
)
  
—
    
—
    
—
    
—
  
Distributions from net realized capital gain
  
—
    
(1.84
)
  
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Total Distributions
  
—
    
(1.87
)
  
(0.03
)
  
(0.10
)
  
(0.17
)
  
(0.03
)
Net Asset Value, End of Period
 
$17.76
  
$
16.59
  
$
19.26
  
$
16.13
  
$
10.85
  
$
13.04
  
Total Return
  
7.05
%
  
(4.13
)%
  
19.60
%
  
49.57
%
  
(15.52
)%
  
21.23
%
Ratios/Supplemental Data:
                                    
Net assets, end of period (000s omitted)
 
$37,343
  
$
35,605
  
$
34,582
  
$
19,978
  
$
8,554
  
$
5,178
  
Ratio of expenses to average net assets
  
1.33
 %†   
1.33
%
  
1.33
%
  
1.35
%
  
1.37
%
  
1.39
 %† 
Ratio of net investment income (loss) to
                                    
average net assets
  
(0.89
 )%†   
(0.56
)%
  
0.28
%
  
(0.61
)%
  
(0.70
)%
  
(0.46
 )%† 
Portfolio turnover rate
  
14.83
%
  
23.01
%
  
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 the period presented.
See Notes to Financial Statements.


52


Seligman Portfolios, Inc.

Board of Directors

 
John R. Galvin 1, 3 
•
Dean Emeritus, Fletcher School of Law and Diplomacy at Tufts University
•
Chairman Emeritus, American Council on Germany
   
 
Frank A. McPherson 2, 3 
•
Retired Chairman of the Board and Chief Executive Officer, Kerr-McGee Corporation
•
Director, DCP Midstream GP, LLP, Integris Health, Oklahoma Chapter of the Nature Conservancy, Oklahoma Medical Research Foundation, Boys and Girls Clubs of Oklahoma, Oklahoma City Public Schools Foundation and Oklahoma Foundation for Excellence in Education
   
 
Betsy S. Michel 1, 3 
•
Trustee, The Geraldine R. Dodge Foundation
   
 
William C. Morris 
•
Chairman, J. & W. Seligman & Co. Incorporated, Carbo Ceramics Inc., Seligman Advisors, Inc. and Seligman Services, Inc.
•
Director, Seligman Data Corp.
•
President and Chief Executive Officer, The Metropolitan Opera Association
   
 
Leroy C. Richie 1, 3 
•
Counsel, Lewis & Munday, P.C.
•
Chairman and Chief Executive Officer, Q Standards Worldwide, Inc.
•
Director, Kerr-McGee Corporation, Infinity, Inc. and Vibration Control Technologies, LLC
•
Lead Outside Director, Digital Ally Inc.
•
Director and Chairman, Highland Park Michigan Economic Development Corp.
•
Chairman, Detroit Public Schools Foundation
   
 
Robert L. Shafer 2, 3 
•
Ambassador and Permanent Observer of the Sovereign Military Order of Malta to the United Nations
   
 
James N. Whitson 1, 3 
•
Retired Executive Vice President and Chief Operating Officer, Sammons Enterprises, Inc.
•
Director, CommScope, Inc.
   
 
Brian T. Zino 
•
Director and President, J. & W. Seligman & Co. Incorporated
•
Chairman, Seligman Data Corp.
•
Director, ICI Mutual Insurance Company, Seligman Advisors, Inc. and Seligman Services, Inc.
•
Member of the Board of Governors, Investment Company Institute
 
__________
Member 1 Audit Committee
2 Director Nominating Committee
3 Board Operations Committee
 
 It is with deep sorrow that we mourn the recent death of Alice Stone Ilchman, a respected member since 1990 of the Boards of the Seligman investment companies.

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


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 Seligman Portfolios, Inc., which contains information about
the management fees and other costs.  Please read the prospectus carefully before investing or sending money.
 
 

SP3 6/06
 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.

Not applicable.

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.


ITEM 12. 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: August 30, 2006

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: August 30, 2006




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

Date: August 30, 2006


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 by Rule 30a-2(b) of the Investment Company Act of 1940.