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:     12/31/03

FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS.

SELIGMAN PORTFOLIOS, INC.

Annual Report December 31, 2003

Seligman
Portfolios, Inc.

Annual Report

December 31, 2003

 

Seligman Portfolios, Inc.

Dear Contract Owner:

We are pleased to present the enclosed report for Seligman Portfolios, Inc. for the year ended December 31, 2003. Performance and portfolio information, as well as audited financial statements, are contained in the pages following this letter.

Effective September 15, 2003, Wellington Management Company, LLP assumed portfolio management responsibility for Seligman Global Growth Portfolio, Seligman Global Smaller Companies Portfolio, and Seligman International Growth Portfolio. Wellington is an independent money manager with over 70 years’ experience in the industry. Throughout its long history, Wellington has built a strong reputation based on its solid performance record, the high quality of its research, and the experience of its investment professionals, each of whom averages 17 years of experience. Seligman believes Wellington is particularly well suited to global and international investing, as the long-term performance of their global and international products has been impressive. Seligman is confident that they will provide shareholders with excellent investment management.

On December 4, 2003, a Special Meeting of Shareholders was held at the offices of the Fund in New York City. At the meeting, shareholders approved the new Subadvisory Agreement giving Wellington Management Company responsibility for managing these three portfolios. Complete details of the shareholder vote are provided on page 81 of this report.

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

Respectfully,

 

William C. Morris

Chairman

J. & W. Seligman & Co. Incorporated

February 13, 2004

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

The following charts compare a $10,000 hypothetical investment in Class 1 shares of each of the Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash Management Portfolio), for the 10-year period ended December 31, 2003, or since inception through December 31, 2003, if less than 10 years, to $10,000 hypothetical investments in the appropriate benchmark indices for the same period. Calculations assume reinvestment of distributions. For those Portfolios that have issued Class 2 shares, the performances for Class 2 shares are not shown in the charts but are included in the tables of returns. The performance of Class 2 shares may be less than the performance of Class 1 shares, based on the differences in fees paid by each class and as a result of different inception dates. Accompanying each chart is a discussion of factors that affected the Portfolio during the past year.

The charts and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.

Seligman Capital Portfolio

Market conditions and equity performance improved dramatically in 2003, responding favorably to improving geopolitical conditions and strong economic and corporate developments. The economy has now seen two years of positive growth, with the second and third quarters of 2003 posting accelerating annualized real rates of GDP growth of 3.1% and 8.2%, respectively. This recovery has primarily been fueled by historically low interest rates, positive fiscal policies, and highly accommodative monetary policies. Consumer spending remained strong, driven by reduced marginal tax rates, tax rebates, and a low interest rate environment that provided homeowners the opportunity to restructure debt, refinance existing mortgages, and tap into home equity. Low interest rates also allowed corporations to restructure balance sheets and refinance debt at much lower rates. This provided corporations with working capital, improving financial conditions for business expansion and leading to margin improvements and stronger operating profits.

 

For the year ended December 31, 2003, the Portfolio underperformed the benchmark Russell MidCap Growth Index. The Portfolio was positioned for an improving economy. Portfolio construction favored sectors that were cyclical in nature and highly leveraged to strong economic growth. Because we were early in anticipating an economic and market recovery, the Portfolio’s underperfomance in the first half of 2003 hampered our overall performance versus the Russell benchmark for the year as a whole. In June of 2003, there was a turning point in the market. As the economy improved, equities responded favorably, and the sectors that historically benefit most from economic growth began to lead the market advance. As a result, the Portfolio posted strong relative and absolute performance during the second half of the year.

The Portfolio’s overweighting in information technology was a positive contributor to the absolute performance of the portfolio as technology was one of the best performing sectors within the benchmark. On a relative basis, however, the Portfolio’s holdings in this sector did not perform as strongly as those of the benchmark. The Portfolio increased its weighting in this sector during the year because of our faith in the economic recovery. Technology companies, we believed, would be among the first and largest beneficiaries of the economic recovery because we thought that increased corporate spending in the form of capital expenditures would help drive the recovery. We had identified other positive factors within the technology sector that made us favor these stocks, including reduced inventories, reduced excess manufacturing capacity, and new product cycles coming to market.

The Portfolio maintained significant exposure to the consumer discretionary sector, yet was relatively underweighted versus the benchmark. The Portfolio has had less than the benchmark’s exposure to the consumer discretionary sector, largely because consumer spending had remained strong throughout the economic downturn. We felt that expectations and valuations had become somewhat high for these stocks, and we were concerned that the group would underperform. The decision to underweight the sector benefited the Portfolio’s returns for the year because the sector was among the benchmark’s weakest areas. Additionally, the consumer discretionary stocks that were in the Portfolio outperformed those in the same sector of the benchmark, and as a result, the sector contributed positively to the Portfolio’s returns for the year both on an absolute and relative basis.

________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

1

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Capital Portfolio(continued)

Health care was another large sector weighting, and the Portfolio was nearly equal weighted with the benchmark in this sector. The Portfolio’s health care holdings as a group delivered generally positive absolute performance for the year; however, on a relative basis, they underperformed those in the same sector as the benchmark. Our investments in this sector are now focused on higher-growth companies, such as biotechnology.

The Portfolio was overweight versus the benchmark in the industrial sector and basic materials sector throughout the year. These overweight positions were put into place because industrial and basic materials stocks typically are among the major beneficiaries of an economic recovery. The Portfolio’s holdings in these sectors underperformed the overall benchmark and their respective sectors of the benchmark for the year. However, as the economy improved and earnings exceeded expectations in the second half of the year, the investments in these two sectors provided strong positive absolute returns and contributed to the Portfolio’s performance relative to their respective sectors of the benchmark during that six-month period.

Seligman Common Stock Portfolio

In 2003, the stock market seemed at long last to benefit from the accommodative fiscal and monetary policy of recent years. All sectors of the market posted gains for the year. Geopolitical tensions in the first quarter of the year weighed heavily on the market initially, but beginning in mid-March, the market began to see substantial upward momentum, which lasted throughout the remainder of the year. The combination of income tax reductions, the decrease in the dividend tax, historically low interest rates, and the Federal Reserve Board’s expansion of the money supply was also positive for equities. Gross domestic product (GDP) growth improved markedly, particularly in the third quarter of 2003. Moving into the fourth quarter of 2003, leading economic indicators appeared to be heading upward, as did industrial production.

 

With this stimulative backdrop, consumer spending continued strong in 2003, despite the downward trend of consumer sentiment prior to the Iraqi war. Furthermore, with the relatively quick end to major hostilities in Iraq, consumer sentiment rose even higher. Meanwhile, lower interest rates were also working in the consumer’s favor, as home mortgage refinancings continued to surge, enhancing liquidity and spending.

The Portfolio’s investments in the information technology sector contributed significantly to positive performance on an absolute basis, as this was the best-performing sector in the S&P 500. However, many of the more speculative technology companies led the sector’s performance in 2003. Since the Portfolio does not typically invest in these types of companies, our relative performance lagged that of the benchmark.

The Portfolio’s absolute and relative performance was helped by holdings in the consumer discretionary sector. We liked this sector from a fundamental standpoint and thought the market had not yet appreciated what we saw as underlying strength. We took advantage of attractive valuations and overweighted the sector. This overweighting, coupled with sound stock selection, produced strong returns for the Portfolio as consumer discretionary outperformed other areas of the market.

Financial stocks were a strong positive in terms of investment results for the year, as this sector performed well. The Portfolio was overweighted in this sector, which led to outperformance relative to the benchmark S&P 500 in this area. The Portfolio was opportunistic and took advantage during periods of price weakness due to concerns about restructuring in the industry and increasing commitments in certain large financial companies. When these stocks rebounded, the Portfolio benefited from these enlarged commitments, significantly aiding overall investment results. Finally, the Portfolio’s performance was penalized by the consumer staples sector, where the Portfolio underperformed the S&P 500. The telecommunications services sector, while representing only a small portion of the Portfolio, was a negative in terms of absolute and relative performance. Early in the year, our overweighting proved premature. When sector performance finally improved, our portfolio position had been pared so that the overall results proved negative. Stock selection in the utilities sector also detracted significantly from performance.

________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

2

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Communications and Information Portfolio

Following three years of declines, the US technology market delivered outstanding returns in 2003. During this time, US economic growth was strong, with a third-quarter 2003 GDP annualized growth rate of 8.2%. Technology spending was a strong component of this growth, and earnings for technology companies began growing again following two years of declines. Much of this spending came from consumers and small- and mid-sized companies. Larger companies remained on the sidelines, continuing to wait for surer signs that the economic recovery was progressing with tangible effects on their bottom lines.

 

Within this environment, investors bet heavily on technology and drove prices for these stocks higher. The greatest beneficiaries were more speculative small- and micro-cap stocks. While the Portfolio certainly participated in the rally of 2003, it remained invested in mid- and larger-sized companies with steadier revenues and profits. We continued to favor software stocks. This was the overweighting relative to the Goldman Sachs Technology Index (GSTI). The Portfolio’s holdings in this area outperformed the average software holding within the benchmark. However, while software was a positively performing sector, it significantly underperformed other sectors, and the Portfolio’s overweighting in this area thus hurt relative returns.

Health care was another area of heavy weighting for the Portfolio. Here, too, the health care stocks the Portfolio chose delivered outstanding performance relative to other health care stocks within the GSTI. However, the health care sector underperformed other index sectors, and the Portfolio’s return was thus adversely impacted. Over this past fiscal year, the Portfolio increased its exposure to health care companies, particularly those with exposure to the consolidating lab testing market and medical instrument manufacturers. We believe the stocks we purchased within this area had better sustainable growth rates at what we believed to be more reasonable prices than many traditional sectors of technology.

The Portfolio was about equal weighted with the index in IT services, which underperformed technology as a whole in 2003, and the Portfolio’s holdings in this group also underperformed those in the benchmark GSTI. We favored the sector because of its predictable, recurring revenues and high profit margins. In the 2003 rally, however, investors pursued companies that, in our view, were more dependent upon an economic rebound. Predictable, profitable companies in IT services, whose profit margins are not as dependent upon the state of the economy, didn’t do as well as companies that are more volatile and more leveraged to economic growth.

During this time, the Portfolio was significantly underweighted versus the benchmark in hardware (computers and peripherals). This benefited the Portfolio because hardware was a relative underperformer. In addition, the Portfolio’s hardware holdings outperformed those of the benchmark. The Portfolio’s holdings within this group were concentrated in select printer manufacturers that have stable and recurring earnings due to replacement cartridge sales.

The Portfolio was also significantly underweighted relative to the benchmark in semiconductors and semiconductor capital equipment stocks. This area was a relatively strong performer and a relatively large weighting within the benchmark. While the semiconductor stocks in the Portfolio significantly outperformed those in the benchmark, our decision to underweight this sector was a negative for the Portfolio. We had chosen to underweight chip stocks because of the poor profitability of many of the leading players in the industry during the economic downturn, and because of the poor results posted by these companies through the summer of 2003. Prices for these stocks appeared to us to be significantly ahead of fundamentals. However, at the end of the summer and early in the fall of 2003, we began to perceive improving fundamentals, most notably with the stronger earnings that were reported by many of these companies in the September 2003 quarter. During the last four months of the year, we significantly increased the Portfolio’s weighting in this area, although we remained underweighted versus the benchmark.

________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

3

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Frontier Portfolio

During the past year, US stocks delivered some of the best gains we have seen in years, fueled by the end of major warfare in Iraq, an improving US economy, and strengthening corporate earnings. During this time, speculative stocks, those companies who, in our view, have less promising prospects for profit, and those with highly leveraged balance sheets, once again found favor. The Portfolio’s investment process is designed to lead us to companies with strong balance sheets and the potential to generate earnings growth. This led us away from some of the more speculative stocks that generated high returns during the year, and negatively impacted the Portfolio’s performance.

 

While nearly all of the sectors in which the Portfolio invests delivered positive total returns for the one-year period, the Portfolio underperformed the Russell 2000 Growth Index in some sectors. Information technology, health care, consumer discretionary stocks, and energy, while delivering positive absolute returns for the Portfolio, negatively impacted the Portfolio’s total return on a relative basis.

Information technology stocks were among the strongest performers within the Russell Index, and the sector was the Portfolio’s heaviest sector Portfolio focused on fundamentals such as balance-sheet strength that were less emphasized during the market rally. These less speculative stocks delivered strong returns, but underperformed the sector as a whole.

Health care holdings represented a significant portion of the Portfolio’s investments. Over the past year, performance in health care has been driven largely by speculative and micro-cap biotechnology companies. The Portfolio’s low exposure in biotechnology hurt relative returns during this time, but the Portfolio recently increased its exposure to biotechnology as some of the more established companies have shown promise.

At year-end, the Portfolio was overweighted in consumer discretionary stocks. While the Portfolio’s holdings within the group delivered positive results overall, the particular stocks the Portfolio held underperformed the sector as a whole. During the past year, the Portfolio’s focus within this sector was specialty apparel, branded retailers, and media companies. Once again, while these industries delivered positive absolute performance, the stocks within the Portfolio underperformed relative to those represented in the Russell 2000 Growth Index.

While the Portfolio’s absolute return in the energy sector was positive, the sector was a relative underperformer within the Russell 2000 Growth benchmark. The Portfolio’s overweighting in the sector, as well as the underperformance of the Portfolio’s sector holdings, contributed to the sec-tor’s overall negative impact on the Portfolio’s relative returns. In the first half of the year, the Portfolio was positioned to benefit from continued high prices for oil and gas. This unfolded as expected; however, energy stocks could not keep pace with the overall market rally, and investors moved out of the sector in favor of more economically sensitive areas.

The Portfolio was significantly underweighted in financial stocks relative to the Russell benchmark. This was positive for performance, as the sector was one of the benchmark’s weakest performers.

________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

4

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Global Growth Portfolio††

During 2003, global economic prospects brightened, as business conditions and corporate earnings slowly improved with each passing quarter. The US led the way, with stock prices rising with the end of major combat in Iraq, an improving US economy, and strengthening corporate earnings. European exporters suffered from the strength of the euro against the US dollar, and gains for European stocks lagged those of US stocks. The euro zone’s economic growth rate remained fairly low despite some corporate earnings improvement. Additionally, Japan found favor with investors during the year, as its economy posted positive growth rates and the government seemed to move closer to making needed reforms.

 

Holdings in the information technology, consumer discretionary, and health care sectors contributed to performance. During the year, the Portfolio’s performance was also positively impacted by stock selection in the US, Canada, and South Korea. The Portfolio’s exposure to Japan was also a positive, as this market performed well during the year. In sector-specific terms, the Portfolio’s good stock selection in health care and consumer discretionary stocks contributed positively to performance. US health care and information technology stocks were especially good performers. The Portfolio’s stock performance during the year, as did stock selection in the areas of financials and utilities.

The Portfolio was underweighted in the financial sector, an area of the market that continues to have overcapacity issues that remain to be addressed, and where it is generally difficult to find good companies that have above-market growth rates. During the third quarter, however, we did buy the stock of a few banks in Japan, a move that was additive to performance. These securities were bought on the premise that a stabilization of the banks’ loan portfolios and an improved outlook for Japan should drive their stock prices higher.

Seligman Global Smaller Companies Portfolio††

During the past year, global equity markets were generally strong, and the Portfolio’s performance benefited from this strength. The recovery in the US and international equity markets spread to Japan and much of Asia. Liquidity increased significantly as institutional investors returned to the equity markets in search of better returns, given historically low yields on bonds and cash. The corporate sector reported profits in line with or ahead of market expectations, leading to a rebound in equity markets that was marked by speculative behavior in a number of instances, with large movements concentrated in cylical stocks, technology, semiconductors, and media names. We continued to focus our energies on bottom-up stock picking by positioning the Portfolio to more attractively valued areas as we sought to exploit overlooked sectors of the market.

 

Within the US, GDP growth was stronger than expected. Productivity also increased strongly, and there were signs that the labor market might be improving. Further, after a sustained period of downsizing, corporations were faced with aging capital stock and began to use profits to upgrade their investments.

During the period, European economic growth appeared to continue to lag, but there were signs that the economy outside of manufacturing was expanding, and the manufacturing sector is expected to follow soon. During the year, the euro strengthened against

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

5

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Global Smaller Companies Portfolio†† (continued)

the US dollar, and the yen appreciated even more. For the first time in recent memory, Japan seemed close to completing the downsizing, post-bubble write-downs, and restructurings it needed to re-enter global markets as a long-term contender.

The information technology and consumer discretionary sectors contributed most to the Portfolio’s performance on an absolute basis. Stock selection in Israel, Singapore, and Hong Kong contributed positively to the Portfolio’s performance during the year. Israeli information technology companies and consumer discretionary stocks in Hong Kong and Japan were especially positive contributors. The Portfolio’s performance was hurt by stock selection in South Korea, Taiwan, the UK, and Canada. Stock selection within the industrials, information technology, and financial sectors also detracted from the Portfolio’s performance. Some of the Portfolio’s US health care stocks were negative contributors to performance.

The Portfolio’s largest overweighting was in the health care sector, based on the belief that health care would show continued above-market growth going forward. During the period, this overweighting detracted slightly from performance. We were also underweighted in materials, which hurt relative performance.

Seligman Global Technology Portfolio††

The US economic recovery picked up steam in the second half of 2003, with robust GDP, manufacturing, and productivity numbers being reported. Performance for global technology stocks, particularly in the US, was strong. Earnings expectations for global technology improved and are better than in most other sectors. With fewer exogenous factors holding back global economic growth and spending, we believe investors are generally anticipating stronger results and that the past year’s market strength reflects heightened expectations of a rebound in technology spending. Despite continuing signs of weak end-market demand, a majority of technology companies met or beat earnings expectations, having benefited from favorable currency exchange in the US and aggressive cost cutting worldwide. Additionally, inventories remain low in most key technology sectors, setting the stage for even a modest increase in demand to quickly impact revenue and earnings.

 

In the first quarter of 2003, it appeared to us as though the market was largely ignoring fundamentals, focusing instead on the daily events related to Iraq. We viewed the resultant market volatility as an opportunity to reduce positions that had reached target prices, and conversely, we took advantage of price weakness to buy new holdings or add to existing positions.

The technology market was driven higher in 2003 largely due to strong performance in the semiconductor and semiconductor capital equipment sectors; because of our underweighted position in these areas the Portfolio did not fully participate in this rally. We still believe, however, that semiconductor sales are in for a slow recovery and that valuations in these areas remain too high. In 2003, we selectively increased our exposure to semiconductors and semiconductor capital equipment, yet remained underweighted in these areas versus the index. Though this position negatively affected relative performance, we are unwilling to increase weightings in semiconductors because of valuation concerns.

By contrast, our decision to remain overweighted in Japanese technology stocks contributed solidly to Portfolio performance. These holdings have attractive absolute and relative valuations and have continued to perform well, spurred by improving demand. The Portfolio’s low weighting in Europe does not reflect any negative macroeconomic analysis; rather, it is due to what we perceive to be a lack of specific investment opportunities.

Another area we have been increasing our exposure to is telecommunications equipment. The Portfolio has been underweighted in this area for some time, but we are starting to believe that the worst may be over for these stocks. This increased exposure, as well as our good stock selection, was good for performance. We also cut back on holdings within IT services. The Portfolio had a large overweighting in this group at the start of the year, and we decided to trim our position to take advantage of the sector’s appreciation in the first part of 2003. The few IT services hold-

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

6

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Global Technology Portfolio†† (continued)

ings that remained in the Portfolio hurt performance, as several of the larger IT services companies came out at the end of the first quarter with disappointing earnings guidance for the rest of the year. The Portfolio was overweighted in software during the year. While our stock selection was good, software in general was a poor performer, and our exposure detracted from relative performance.

Seligman High-Yield Bond Portfolio

Investors displayed an increased appetite for risk in 2003, as funds flowed into high-yield securities. A pickup in the economy, a lower interest rate environment, and lower default rates all contributed to the increase in investor demand.

 

The US economy got off to a slow start in the first half of 2003, expanding at a 2-3% annualized rate, which is slightly less than its assumed potential of 3-4%. Consumption and capital spending were held back as businesses and consumers remained cautious going into the commencement of hostilities in Iraq. The economy began to accelerate in the second half of the year, with gross domestic product (GDP) growth reported at 8.2% in the third quarter of 2003. The economic acceleration was due at least in part to the high levels of monetary and fiscal stimulus from the low federal funds rate (1%) and the deficit spending by the federal government.

Intermediate interest rates finished the year slightly higher after dropping to 40-year lows in June. The temporary decline provided an incentive for many increased investor demand for higher-income products such as high-yield bonds. All of these factors contributed to the strong performance of high-yield bonds in 2003.

In the high-yield bond market, default rates generally declined throughout the year. This allowed credit spread premiums (which is the excess yield above comparable US Treasuries and represents investors’ compensation for taking default risk) to decline along with interest rates in the high-yield market. This, in turn, lifted high-yield bond prices higher.

In 2003, the Portfolio’s performance improved significantly over prior years and generally reflected the strong rally in high-yield bonds. The Portfolio began the year with an underweighting in the weakest companies with the lowest ratings and highest yields, sometimes referred to as defaulted or distressed securities. This was consistent with our outlook for sluggish economic growth and a possible war in Iraq. As it turned out, the economy did grow slowly in the first half of 2003, and war did break out in Iraq. However, high-yield investors heavily discounted these concerns, and the lowest-rated bonds outperformed the overall market in the first half of the year. The Portfolio had an underweighting in these distressed bonds, and this held back the Portfolio’s relative performance.

Toward mid-year, the Portfolio began increasing its exposure to economically sensitive industries that we believed would benefit from the eventual economic recovery, for example, chemicals, paper, and packaging. The Portfolio also increased its exposure to lower-rated companies with greater financial leverage, as well as to other riskier credits. We felt the significant monetary and fiscal stimulus, the falling dollar, rising consumer confidence and corporate spending, and a successful conclusion to the major hostilities in the Iraqi war would eventually lead to increased economic activity.

By the fourth quarter of 2003, the government’s economic data releases started to provide evidence of a strengthening economy. The financial markets reacted positively to this news and began to embrace the notion that a self-sustaining economic recovery was at hand, increasing demand for cyclical bonds. The Portfolio benefited from this secular rotation since we had an overweighted position in many of these bonds. For this reason, the Portfolio outperformed its peer group toward year-end, though not for the one-year period as a whole.

Seligman Income and Growth Portfolio

In 2003, the stock market seemed at long last to benefit from the accommodative fiscal and monetary policy of recent years. All sectors of the market posted positive gains for the year. Geopolitical tensions in the first quarter of the year weighed heavily on the market initially, but beginning in mid-March, the market began to see substantial upward momentum, which lasted throughout the remainder of the year. The combination of income

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

7

Seligman Portfolios, Inc.
Annual Performance Overview (unaudited)

Seligman Income and Growth Portfolio(continued)

tax reductions, the decrease in the dividend tax, historically low interest rates, and the Federal Reserve Board’s expansion of the money supply was also positive for equities. Gross domestic product (GDP) growth improved markedly, particularly in the third quarter of 2003. In the fourth quarter of 2003, leading economic indicators appeared to be heading upward, as did industrial production.

With this stimulative backdrop, consumer spending continued strong in 2003, despite the downward trend of consumer sentiment prior to the Iraqi war. Furthermore, with the relatively swift end to major hostilities in Iraq, consumer sentiment was further bolstered. Meanwhile, lower interest rates were working in the consumer’s favor, as home mortgage refinancings continued to surge, also enhancing liquidity and spending.

 

The bond market began and ended 2003 at similar levels, but there was a great deal of volatility during the year. Bonds rallied in March during the run-up to the Iraqi war, but yields rose again after the war. In May, the Fed spoke about the possibility of disinflation (prices rising at a slower and slower pace), which is good for bonds and caused yields to decline to 40-year lows. In June, bond investors expected the Fed to announce an interest rate cut of 50 basis points; however, the cut was only 25 basis points. The bond market had priced in more concern than the Fed actually had, and yields started sharply back up before moderating by the end of the year.

Corporate bonds performed well in 2003, particularly lower-quality bonds whose spreads had reached almost exaggerated levels in the aftermath of the Enron and WorldCom scandals. Corporate spreads, compared to US government bonds, fell all year, and corporate bonds continue to perform well. In the equity portion of the Portfolio, performance was helped by holdings in the consumer discretionary sector, where we were overweighted and had good stock selection. This sector had strong fundamentals which, in our opinion, had not been recognized by the market. We took advantage of attractive valuations and overweighted the sector. This overweighting, coupled with sound stock selection, produced strong returns for the Portfolio as consumer discretionary outperformed other areas of the market.

Financial stocks were also a positive in terms of investment results. The Portfolio was overweighted in this sector, and outperformed relative to the benchmark S&P 500 in this area because of good stock selection.

The Portfolio’s investments in the information technology sector contributed significantly to performance on an absolute basis, as this was the best-performing sector in the S&P 500. However, many of the more speculative technology companies led the sector’s performance in 2003. Since the Portfolio does not typically invest in these types of companies, our relative performance lagged that sector of the S&P 500.

Investment results were penalized by an underweighting in the consumer staples sector. While the Portfolio’s holdings in the energy sector had good absolute performance, stock selection was not helpful. The telecommunications services sector, while representing only a small portion of the Portfolio, was a negative in terms of absolute and relative performance. The Portfolio’s holdings performed poorly during the first part of the year. Subsequently, this sector’s performance improved, but in the interim the Portfolio’s exposure had been reduced (and in September eliminated altogether), and thus overall returns were below the index in this area.

The fixed-income portion of the Portfolio outperformed the Lehman Government/Credit Index for the year. Exposure to BBB-rated corporate bonds in the first half of the year helped the Portfolio’s returns as these were strong performers. In May we decreased our exposure to corporate bonds, thinking the rally had run its course. Spreads did widen for about two weeks, then tightened again. In June we again increased exposure to corporate bonds and maintained it for the balance of the year, but we had missed some of the rally. As a result of interest rates reaching 40-year lows in the spring, we significantly shortened the Portfolio’s duration (a measure of price sensitivity to a change in interest rates) at the beginning of July, and when rates spiked up in July and moved sideways during the balance of the year, the Portfolio outperformed the Lehman benchmark.

Our exposure to mortgage bonds hurt performance in 2003. We had expected rates to be fairly stable, but mortgages underperform when there is a significant increase in interest rates, as we saw during the summer. However, toward the end of the year, the extra yield obtained through exposure to mortgages added to the Portfolio’s performance.

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

8

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman International Growth Portfolio††

During the past year, global economic prospects brightened, as business conditions and earnings slowly improved with each passing quarter. The US led the way, with stock prices rising with the end of major combat in Iraq, an improving US economy, and strengthening corporate earnings. European exporters suffered from the strength of the euro against the US dollar, and gains in European stocks lagged those of US stocks. The euro zone’s economic growth rate remained low despite some corporate earnings improvement. Additionally, Japan found favor with investors during the year, as its economy posted positive growth rates and the government seemed to move closer to making needed economic reforms.

 

The Portfolio’s holdings in the information technology, consumer discretionary, and materials sectors positively contributed to relative investment results. Stock selection in financials (particularly in the UK), and industrials detracted from performance. Holdings in the consumer staples and energy sectors detracted from performance. The Portfolio’s overweighting in consumer discretionary stocks was particularly helpful, as this sector performed well across geographic regions. Stock selection in Japan, South Korea, and Canada added to performance, and stock selection in Italy, the Netherlands, and Spain detracted.

We remained underweighted in financials, an area that continues to have overcapacity issues that remain to be addressed, and where it is generally difficult to find good companies that have above-market growth rates. We did, however, invest in a few banks in Japan on the premise that a stabilization of the banks’ loan portfolios and their improved outlook should drive their stock prices higher. Our analysis proved correct as the Japanese banks were a positive contributor to performance toward the end of the year. Strong stock selection in Brazil was also additive to performance.

Seligman Investment Grade Fixed Income Portfolio

While long-term US Treasury bonds were relatively stable through May 2003, the rate for 10-year US Treasury bonds fell to a 40-year low of 3.13% in June before rising sharply at the end of June and July. The rate hit 4.61% on August 2 before closing the year at 4.27%. Corporate bonds displayed more volatility throughout the year. At the end of 2002, corporate spreads had been historically wide, but they fell significantly during the year. Corporate bonds performed well in 2003, particularly lower-quality bonds whose spreads had reached almost exaggerated levels in the aftermath of the Enron and WorldCom scandals. Spreads between these bonds and US Treasuries have since been more consistent with their historical averages. The Portfolio benefited from the rally in corporates since we had increased its weighting in lower-rated corporate bonds, and these bonds increased in price during this time. The Portfolio outperformed the Lehman Brothers Government Bond Index for the year.

 

At the beginning of 2003, it appeared that the worst of the corporate scandals was over and spreads between corporate-bond and US Treasury yields began to tighten, reflecting the fact that the market perceived reduced risks within the corporate bond market. At this time, the Portfolio increased its weighting in lower-rated corporate bonds, which we believe would deliver strong performance, both with respect to yield and price. This change in positioning benefited the Portfolio as lower-rated corporate bonds increased in value to a greater degree than those with higher ratings during the first part of the year.

As the first calendar quarter of 2003 came to a close, we believed corporate bonds were unlikely to increase significantly in value. In particular, in the event the economic recovery was weak or delayed, we felt lower-rated corporate bonds would suffer. The Portfolio thus reduced its weighting in lower-rated corporate bonds in favor of mortgages, which provide a yield advantage over US Treasuries. While mortgages did deliver strong per-

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

9

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Investment Grade Fixed Income Portfolio(continued)

formances relative to Treasuries, they underperformed lower-rated corporate bonds. (Mortgages underperform when there is a significant increase in interest rates, as we saw during the summer.) However, toward the end of the year, the extra yield obtained through exposure to mortgages began to add to the Portfolio’s performance. Finally, as we expected interest rates to rise, the Portfolio’s duration (a measure of price sensitivity to a change in interest rates) was significantly shortened, making the Portfolio less susceptible to declines in value resulting from increases in interest rates. When rates spiked up in July, for example, the Fund performed better than the Lehman Index.

Seligman Large-Cap Growth Portfolio

Market conditions and equity performance improved dramatically in 2003, responding favorably to improving geopolitical conditions and strong economic and corporate developments. The economy has now seen two years of positive growth, with the second and third quarters of 2003 posting accelerating annualized real rates of GDP growth of 3.1% and 8.2%, respectively. This recovery has primarily been fueled by historically low interest rates, positive fiscal policies, and highly accommodative monetary policies. Consumer spending remained strong, driven by reduced marginal tax rates, tax rebates, and a low interest rate environment that provided homeowners the opportunity to restructure debt, refinance existing mortgages, and tap into home equity. The low interest rate environment also allowed corporations to restructure balance sheets and refinance debt at much lower rates. Within this supportive environment, the Portfolio delivered strong returns.

 

The Portfolio has been positioned for economic recovery for some time. Beginning in the second quarter of 2002, we began anticipating economic recovery based on the belief that low interest rates, as well as supportive monetary and fiscal policies, would lead to improving financial conditions for business expansion. Corporate America, we believed, could refinance debt at sheet conditions, and providing working capital to raise production and supply when needed. In 2003, this positioning paid off.

The Portfolio had a large sector weighting in the area of information technology, and was overweighted relative to the Russell 1000 Growth Index. The Portfolio’s heavy investment in IT was beneficial in terms of both absolute and relative returns, since this was one of the best-performing sectors within the large-cap growth universe of stocks. Our overweighting and its outperformance as compared to the Russell benchmark was the primary factor behind the Portfolio’s strong performance versus the benchmark as a whole. The Portfolio was heavily weighted in technology during the fiscal year because of our faith in the economic recovery. We had identified other positive factors within the technology sector that made us favor these stocks, including reduced inventories, reduced excess manufacturing capacity, and new product cycles coming to market.

Health care was another of the Portfolio’s largest sector weightings, and the Portfolio was somewhat overweighted in this area versus the Russell benchmark. The Portfolio’s health care holdings delivered returns that were competitive with large-cap growth health care stocks, and the returns were strong on an absolute basis. However, health care stocks were relatively weak performers relative to the rest of the Russell Index.

The Portfolio’s decision to significantly underweight consumer staples paid off. However, the stocks we held in this area underperformed those of the Russell benchmark and the group thus made a negative contribution to relative portfolio returns. The Portfolio was also slightly underweighted in consumer discretionary stocks, which were underperformers within the Russell benchmark. The stocks the portfolio held in this group also underperformed the Russell benchmark.

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

10

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Large-Cap Value Portfolio

After three consecutive negative years for the stock market, in 2003, we saw the markets and the economies of the world gain some positive direction. The continued easing by the Federal Reserve Board finally yielded results, but it was the end of major conflict in Iraq that was the main impetus for the strong market rally of the second, third, and fourth quarters of 2003. (During the first quarter of the year, the tensions surrounding the lead-up to war in Iraq made investors nervous and the stock market was volatile as a result.) Gross domestic product (GDP) growth improved markedly, particularly during the third quarter, suggesting that the US economic recovery was solid. The fiscal stimulus provided by the tax cut package was also important to investor confidence. Corporate earnings improved as well, and these factors contributed to an environment that proved to be highly favorable for equities.

 

At the beginning of 2003, we were of the opinion that improved corporate earnings would drive the stock market higher. We felt that earnings forecasts of double-digit gains would result in similar gains for stock prices. The Portfolio had a pro-cyclical tilt during the year, and overall performance benefited as a result. We ended the year with solid economic growth unfolding. Cyclical stocks anticipated the improvement in earnings, and, in general, these stocks performed very well.

The Portfolio’s performance during 2003 was strong, both on an absolute basis and relative to the Russell 1000 Value Index and the Lipper Large-Cap Value Funds Average. The Portfolio’s largest sector concentration was in financial stocks, and this sector contributed to performance; money center banks did particularly well during the year. Good stock selection in the consumer discretionary sector added significantly to performance, as the Portfolio’s holdings outperformed those of the Russell Index. Our retail and automobile holdings posted particularly strong gains. Stock selection was again a major factor in the utilities sector; the stock of a merchant energy holding posted impressive gains and contributed to the Portfolio’s strong absolute and relative performance in this sector.

The Portfolio maintained a sizable overweighting in the materials sector during the year, with our focus being on chemicals and paper and forest products. Once again, good stock selection contributed to the Portfolio’s outperformance versus the Russell Index in this area. Unlike the Russell Index, the Portfolio had no exposure to the telecommunications services sector. This underweighting was fortunate, as the sector was the weakest-performing area in the Russell Index during the period.

The Portfolio maintained a large overweighting in health care during the year, and the sector posted positive returns; however, health care was one of the weakest-performing areas of the Russell Index, and our exposure here detracted from relative performance. The energy sector contributed to the Portfolio’s performance on an absolute basis, but detracted from performance relative to the Russell Index due to stock selection.

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

See footnotes on page 12.

11

Seligman Portfolios, Inc.

Annual Performance Overview (unaudited)

Seligman Small-Cap Value Portfolio

The stock market posted strong results in 2003, due largely to: 1) the elimination of investor anxiety related to the Iraqi war, and 2) a robust economy brought about by the combination of stimulative monetary policy, tax cuts, and increased government spending. During the first two and a half months of 2003, the stock market was down amid fears related to war preparations and on the heels of nearly two years of negative earnings surprises. The balance of the year was characterized by strong GDP numbers, positive earnings estimate revisions, and improving consumer sentiment. Also important was a continuing weakening of the US dollar versus our major trading partners (though China’s currency is pegged to the dollar), which generally made US-manufactured products more competitive in the global markets. All of these improvements came in the absence of any pickup in inflation. In short, the environment for equities in general, and small-cap stocks in particular, was highly favorable. Small-cap stocks outperformed the broader market by a large margin, as they historically have following a protracted downturn in the economy.

 

At the beginning of 2003, the Portfolio was positioned to take advantage of the following themes: 1) an expected economic recovery, and 2) an undervaluation of specific health care stocks. We also sought to find attractive investment opportunities in the technology sector, as this sector had been in a bear market for nearly three straight years. Fortunately, the year played out as we anticipated, and the Portfolio’s performance, both relative and absolute, was strong.

Industrials were the Portfolio’s largest sector weighting; our overweighted position and good stock selection had a positive effect on performance. Our exposure to the health care sector, and in particular our large overweighting versus the Russell 2000 Value Index in this area, was a large contributor to Portfolio performance during the year. Pharmaceuticals and biotechnology holdings performed especially well. The Portfolio’s exposure to the information technology sector also helped performance significantly on an absolute basis, as this was one of the market’s best-performing sectors during 2003. The Portfolio’s semiconductor and electronic equipment holdings did well during this time. Additionally, good stock selection in the consumer discretionary sector, where the Portfolio maintained an overweighting and focused on specialty retailers, was a strong boost to performance on both a relative and absolute basis.

In the financials sector, the Portfolio’s absolute performance was positive, but stock selection took away from relative performance, as we underperformed the Russell Index in this sector. However, the Portfolio’s underweighting in financials helped, as this sector was not a particularly strong performer. Stock selection in the materials sector was also a drag on relative performance, though absolute performance in this sector was strong. The Portfolio underperformed the Russell Index in the consumer staples sector, which detracted from relative performance.

_________________

The rates of return will vary and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results.

The views and opinions expressed are those of the Portfolio Manager(s), are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendation for, any person. There can be no guarantee as to the accuracy of market forecasts. Opinions, estimates, and forecasts may be changed without notice.

†

Performance data quoted represent past performance, reflect any change in price and assume all distributions are reinvested in additional shares. Returns are net of all portfolio operating expenses, but do not include any charges imposed on contract owners by the insurance companies’ separate account. If the returns included the effect of these additional charges, they would have been lower. For certain Portfolios, the Manager is voluntarily reimbursing a portion of the Portfolio’s expenses, and such reimbursement can be discontinued at any time at the Manager’s discretion. Absent such reimbursement, returns would have been lower.

††

Investing in this Portfolio is subject to certain risks, including the possible loss of principal. There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and rapid changes in political and economic conditions.

12

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Largest Portfolio Changes^†

During the Six Months Ended December 31, 2003

Seligman Capital Portfolio
Largest Purchases	Largest Sales
MeadWestvaco*	Arkansas Best**
CSX*	Rockwell Automation
AmeriTrade Holding*	Williams-Sonoma**
Allied Waste Industries*	SICOR**
Networks Associates*	Navistar International
Ball*	Chico’s FAS
T. Rowe Price Group*	Gilead Sciences**
Brunswick*	Symbol Technologies**
Affymetrix*	QLogic
Millipore*	Cabot Microelectronics**
Seligman Common Stock Portfolio
Largest Purchases	Largest Sales
SPDR Trust (Series 1)*	Bear Stearns**
Goldman Sachs Group*	Bank of America
Freeport-McMoRan Copper & Gold (Class B)*	J.P. Morgan Chase
Merrill Lynch	American Express
Prudential Financial*	W.R. Berkley**
Exxon Mobil	Air Products and Chemicals**
International Business Machines	Sun Microsystems**
Dean Foods*	Gannett**
ServiceMaster*	Devon Energy**
L-3 Communications Holdings*	Limited Brands**
Seligman Communications and Information Portfolio
Largest Purchases	Largest Sales
Hewlett-Packard*	Cadence Design Systems**
InterActive*	SunGard Data Systems
INAMED*	Fair, Isaac**
Citrix Systems*	Charles River Laboratories International**
Advanced Micro Devices*	BMC Software
Intel*	CSG Systems International**
Microsoft	Clear Channel Communications**
Accenture (Class A)*	McGraw-Hill**
Intersil (Class A)*	Network Associates**
Magma Design Automation*	International Business Machines**

Seligman Frontier Portfolio
Largest Purchases	Largest Sales
Packeteer*	Select Medical
Actel*	Career Education**
Enterasys Networks*	Documentum**
Hyperion Solutions*	RF Micro Devices**
Manhattan Associates*	Watson Wyatt Holdings**
Andrew*	Adaptec**
Investors Financial Services	RARE Hospitality International
Medicis Pharmaceutical (Class A)*	Aeroflex**
GrafTech International*	Hollywood Entertainment**
Digital River*	Acxiom**

________________
See footnotes on page 19.

 13

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Seligman Global Growth Portfolio

Largest Portfolio Changes†
During the Six Months Ended December 31, 2003
Largest Purchases	Largest Sales
Gillette*	Medtronic**
ABB*	JFE Holdings**
Vodafone Group (ADR)*	Coca-Cola**
Altria Group*	Amgen**
Cendant*	Intel**
Atlas Copco*	General Electric**
Guidant*	International Business Machines**
Siemens*	Hewlett-Packard**
Bank One*	BHP Billiton**
Roche Holding	Marathon Oil**

Diversification of Net Assets by Industry***
December 31, 2003
						Percent of Net Assets
						December 31,
	Issues		Cost		Value		2003		2002
Common Stocks:
Automobiles and Components	2	$	49,690	$	55,403		1.9	%	2.0	%
Banks	3		88,941		98,161		3.4		10.7
Capital Goods	8		319,686		372,046		13.0		3.3
Chemicals	—		—		—		—		5.0
Commercial Services and Supplies	2		78,898		89,385		3.1		0.7
Communications Equipment	4		107,034		143,322		5.0		3.1
Computers and Peripherals	1		38,082		37,345		1.3		2.9
Consumer Durables and Apparel	3		52,956		53,882		1.9		3.3
Consumer Staples	4		176,112		196,635		6.9		9.6
Containers and Packaging	—		—		—		—		0.8
Diversified Financials	4		173,243		201,478		7.0		3.4
Electronic Equipment and Instruments	—		—		—		—		0.5
Energy	6		177,239		195,908		6.8		8.5
Health Care	11		391,186		437,217		15.3		20.4
Hotels, Restaurants and Leisure	1		27,349		28,489		1.0		1.6
Insurance	2		81,532		93,673		3.3		1.2
Media	6		129,168		142,619		5.0		4.0
Metals and Mining	2		40,529		52,592		1.8		1.2
Office Electronics	—		—		—		—		1.0
Paper and Forest Products	—		—		—		—		1.2
Retailing	5		126,698		131,839		4.6		1.3
Semiconductors and Semiconductor Equipment	6		99,634		101,367		3.5		3.7
Software and Services	4		129,269		143,604		5.0		1.8
Telecommunication Services	4		120,076		144,056		5.0		3.7
Transportation	1		25,760		31,127		1.1		1.3
Utilities	—		—		—		—		3.6
	79		2,433,082		2,750,148		95.9		99.8
Other Assets Less Liabilities	—		119,006		119,006		4.1		0.2
Net Assets	79	$	2,552,088	$	2,869,154		100.0	%	100.0	%

________________

See footnotes on page 19.

14

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Seligman Global Smaller Companies Portfolio

Largest Portfolio Changes†
During the Six Months Ended December 31, 2003
Largest Purchases	Largest Sales
Biosite*	Tamron**
CV Therapeutics*	Ranbaxy Laboratories**
Carlsberg (Class B)*	M-Systems Flash Disk Pioneers**
NRJ Group*	Select Medical**
Remy Cointreau*	Hit Entertainment**
Iomega*	Integra LifeSciences Holdings**
PolyMedica*	Career Education**
Kirin Beverage*	JSR**
EMI Group*	Priority Healthcare (Class B)**
Taiyo Ink Manufacturing*	Unisteel Technology**

Diversification of Net Assets by Industry***
December 31, 2003
						Percent of Net Assets
						December 31,
	Issues		Cost		Value		2003		2002
Common Stocks:
Automobiles and Components	3	$	75,425	$	79,490		1.2	%	0.8	%
Capital Goods	15		414,673		483,112		7.3		6.6
Chemicals	6		214,683		226,110		3.4		2.5
Commercial Services and Supplies	8		181,099		211,015		3.2		9.7
Communications Equipment	4		109,743		110,641		1.7		2.1
Computers and Peripherals	2		93,728		79,986		1.2		—
Construction Materials	2		31,264		35,703		0.6		—
Consumer Durables and Apparel	9		234,793		264,742		4.0		2.6
Consumer Staples	19		593,208		646,506		9.8		4.9
Electronic Equipment and Instruments	3		75,821		63,935		1.0		1.6
Energy	9		251,757		300,244		4.6		5.0
Financials	40		911,921		1,014,059		15.4		10.3
Health Care Equipment and Supplies	9		286,436		281,706		4.3		5.1
Health Care Providers and Services	6		143,705		154,249		2.3		6.9
Hotels, Restaurants and Leisure	2		53,875		60,454		0.9		7.9
Media	17		456,106		530,895		8.1		4.2
Metals and Mining	4		100,476		138,147		2.1		1.4
Office Electronics	—		—		—		—		0.3
Pharmaceuticals and Biotechnology	14		466,580		482,767		7.3		3.9
Retailing	18		546,063		579,688		8.8		5.5
Semiconductors and Semiconductor Equipment	8		181,705		187,122		2.8		3.8
Software and Services	11		242,262		265,297		4.0		7.5
Telecommunication Services	4		107,243		116,651		1.8		0.6
Transportation	5		136,409		141,525		2.2		3.3
Utilities	2		57,291		60,595		0.9		1.0
	220		5,966,266		6,514,639		98.9		97.5
Other Assets Less Liabilities	—		72,586		72,586		1.1		2.5
Net Assets	220	$	6,038,852	$	6,587,225		100.0	%	100.0	%

________________

See footnotes on page 19.

15

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Seligman Global Technology Portfolio

Largest Portfolio Changes†
During the Six Months Ended December 31, 2003
Largest Purchases	Largest Sales
Oki Electric Industry*	SunGard Data Systems
Hewlett-Packard*	First Data**
Nippon Telegraph & Telephone “NTT”*	NEC
Fujikura*	Telefonaktiebolaget LM Ericsson (ADR)**
Accenture (Class A)*	Nortel Networks**
Koninklijke (Royal) Philips Electronics*	Pioneer**
Chartered Semiconductor Manufacturing*	Cadence Design Systems**
King Yuan Electronics*	ALLTEL**
Advanced Micro Devices*	Furukawa Electric**
Amkor Technology*	Microsoft

Diversification of Net Assets by Industry***
December 31, 2003
						Percent of Net Assets
						December 31,
	Issues		Cost		Value		2003		2002
Common Stocks
Application Software	7	$	931,450	$	1,193,188		9.5	%	13.3	%
Capital Goods	2		281,899		359,509		2.9		1.8
Commercial Services and Supplies	1		84,378		112,382		0.9		4.9
Communications Equipment	4		466,177		567,337		4.5		3.1
Computers and Peripherals	8		911,477		1,089,697		8.7		9.3
Consumer Durables and Apparel	3		391,436		472,760		3.8		3.1
Data Processing and Outsourced Services	3		360,230		440,044		3.5		12.8
Electronic Equipment and Instruments	11		1,145,974		1,378,189		11.0		7.5
Financials	1		73,615		88,767		0.7		—
Health Care	6		735,357		874,067		7.0		2.0
Home Entertainment Software	3		157,794		184,297		1.5		0.7
Internet Software and Services	—		—		—		—		1.4
IT Consulting and Other Services	3		724,238		697,748		5.6		2.7
Materials	2		157,448		182,078		1.5		2.3
Media	2		45,705		50,869		0.4		2.8
Office Electronics	4		376,840		379,832		3.0		3.2
Retailing	1		157,104		152,707		1.2		—
Semiconductors and Semiconductor Equipment	17		1,967,322		2,132,888		17.0		5.2
Systems Software	5		928,069		1,110,938		8.9		15.8
Telecommunication Services	3		389,664		423,281		3.4		1.2
	86		10,286,177		11,890,578		95.0		93.1
Put Options Purchased	1		82,272		6,480		0.1		—
Other Assets Less Liabilities	—		620,231		620,231		4.9		6.9
Net Assets	87	$	10,988,680	$	12,517,289		100.0	%	100.0	%

____________________

See footnotes on page 19.

16

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Largest Portfolio Changes†

During the Six Months Ended December 31, 2003

Seligman High-Yield Bond Portfolio
Largest Purchases	Largest Sales
Georgia-Pacific 8.875%, 5/15/2031	Williams Companies 8.125%, 3/15/2012**
Dex Media East 12.125%, 11/15/2012*	Roundy’s (Series B) 8.875%, 6/15/2012**
Charter Communications Holdings 0% (11.75%), 5/15/2011*	Allied Waste North America 10%, 8/1/2009**
Calpine 8.75%, 7/15/2013*	Sinclair Capital 11.625%**
Crown Cork & Seal 8%, 4/15/2023*	CSK Auto 12%, 6/15/2006**
AES 9.375%, 9/15/2010	Western Resources 9.75%, 5/1/2007**
Alamosa Holdings 11%, 7/31/2010*	Western Financial Bank 9.625%, 5/15/2012
Dobson Communications 8.875%, 10/1/2013*	Felcore Lodging 10%, 9/15/2008**
ARCO Chemical 9.80%, 2/1/2020*	Sun Media 7.625%, 2/15/2013**
Triton PCS 8.75%, 11/15/2011*	Graphic Packaging 8.625%, 2/15/2012**

Seligman Income and Growth Portfolio
Largest Purchases	Largest Sales
FHLMC 6%, 3/1/2033*	US Treasury Bonds 5.375%, 2/15/2031**
FNMA 3.875%, 11/15/2008*	US Treasury Notes:
Sprint Capital 7.125%, 1/30/2006*	1.125%, 6/30/2005**
General Motors Acceptance 4.375%, 12/10/2007*	3.875%, 2/15/2013**
General Mills 2.625%, 10/24/2006*	US Government Gtd. Title XI (Bay Tansportation)
FHLMC 3.25%, 2/25/2008*	7.30%, 6/1/2021**
FNMA 3.25%, 8/15/2008*	Bear Stearns**
Freeport-McMoRan Copper & Gold (Class B)*	Bank of America
Goldman Sachs Group*	J.P. Morgan Chase
Time Warner 9.15%, 2/1/2023*	FNMA 1.75%, 6/16/2006**
	American Express
	FHLMC 2.20%, 9/12/2005**

Seligman International Growth Portfolio
Largest Purchases	Largest Sales
ABB*	Royal Bank of Scotland Group**
Siemens*	JFE Holdings**
Atlas Copco*	BHP Billiton**
Muenchener Rueckversicherungs-Gesellschaft*	DBS Group Holdings**
Total*	Royal Dutch Petroleum (NY shares)**
Allianz*	Canon**
Burberry Group*	Honda Motor**
Schering*	Gucci Group (NY shares)**
Compass Group*	Barclays**
Pinault-Printemps-Redoute*	Fortum**

________________See footnotes on page 19.

17

Seligman Portfolios, Inc.
 

Portfolio Overview (unaudited)

Diversification of Net Assets by Industry***
December 31, 2003
Seligman International Growth Portfolio
						Percent of Net Assets
						December 31,
	Issues		Cost		Value		2003		2002
Common Stocks:
Automobiles and Components	3	$	140,238	$	157,429		4.5	%	2.8	%
Banks	2		82,077		95,227		2.7		15.3
Capital Goods	8		485,383		572,831		16.4		2.1
Chemicals	1		27,947		28,618		0.8		4.0
Communications Equipment	4		122,780		160,024		4.6		2.0
Consumer Durables and Apparel	4		209,396		227,889		6.5		5.3
Consumer Staples	4		98,807		94,980		2.7		9.1
Containers and Packaging	—		—		—		—		1.1
Diversified Financials	2		78,406		91,346		2.6		5.1
Electronic Equipment and Instruments	—		—		—		—		0.7
Energy	4		167,065		196,387		5.6		12.3
Health Care	6		277,297		320,963		9.2		12.2
Hotels, Restaurants and Leisure	2		96,830		106,556		3.1		—
Insurance	3		177,185		203,297		5.8		1.6
Media	4		196,495		207,898		6.0		5.9
Metals and Mining	2		74,735		100,150		2.9		1.7
Office Electronics	—		—		—		—		1.3
Paper and Forest Products	—		—		—		—		1.9
Real Estate	1		38,723		46,839		1.4		—
Retailing	4		239,437		256,473		7.4		—
Semiconductors and Semiconductor Equipment	2		81,790		91,261		2.6		2.4
Software and Services	3		133,265		147,612		4.2		—
Telecommunication Services	4		161,370		180,621		5.2		5.5
Transportation	2		77,644		84,776		2.4		2.1
Utilities	—		—		—		—		2.9
	65		2,966,870		3,371,177		96.6		97.3
Other Assets Less Liabilities	—		119,088		119,088		3.4		2.7
Net Assets	65	$	3,085,958	$	3,490,265		100.0	%	100.0	%

Largest Portfolio Changes†
During the Six Months Ended December 31, 2003
Seligman Investment Grade Fixed Income Portfolio
Largest Purchases	Largest Sales
US Treasury Notes 3%, 2/15/2008*	US Treasury Bonds 3%, 2/15/2008**
Sprint Capital 7.125%, 1/30/2006*	FNMA 2.875%, 5/19/2008**
General Motors Acceptance 4.375%, 12/10/2007*	FHLMC 4%, 6/12/2013**
General Mills 2.625%, 10/24/2006*	US Treasury Notes 1.125%, 6/30/2005**
FNMA:	FNMA 1.75%, 6/16/2006**
6%, 3/1/2033*	US Treasury Bonds 7.25%, 8/15/2022**
6.50%, 7/1/2032*	FHLMC:
Time Warner 9.15%, 2/1/2023*	4.875%, 3/15/2007**
Ford Motor 7%, 10/1/2013	2.20%, 9/12/2005**
American General Finance 3%, 11/15/2006	AOL Time Warner 6.875%, 5/1/2012**
	PP&L Capital Funding 8.375%, 6/15/2007**

________________

See footnotes on page 19.

18

Seligman Portfolios, Inc.

Portfolio Overview (unaudited)

Largest Portfolio Changes†
During the Six Months Ended December 31, 2003
Seligman Large-Cap Growth Portfolio
Largest Purchases	Largest Sales
Target*	Applied Materials
Goldman Sachs Group*	Hewlett-Packard
Allstate*	Intel
Walt Disney*	Williams-Sonoma**
Forest Laboratories*	First Data**
Time Warner	EMC**
Tyco International	Allergan**
Abbot Laboratories	Air Products and Chemicals**
Schlumberger*	Pitney Bowes**
Coca-Cola	Analog Devices**

Seligman Large-Cap Value Portfolio
Largest Purchases	Largest Sales
Pfizer*	Bristol-Meyers Squibb*
Valero Energy*	Transocean**
Cisco Systems*	AES
CSX*	FleetBoston Financial
	J.P. Morgan Chase
	Altria Group
	Georgia Pacific

Seligman Small-Cap Value Portfolio
Largest Purchases	Largest Sales
Andrx*	AGCO**
Mentor Graphics*	J.B. Hunt Transport Services
Cabot*	Loews-Carolina Group**
Peabody Energy*	Innkeepers USA Trust**
Extreme Networks*	Continental Airlines
Agere Systems (Class A)	Eon Labs
American Italian Pasta
The Wet Seal (Class A)
American Eagle Outfitters
Enzon

_________________
†	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. The data has not been audited by Ernst & Young LLP.
*	Position added during the period.
**	Position eliminated during the period.
***	“Diversification of Net Assets by Industry” is included for the Seligman International Portfolios because their portfolio holdings are listed by country rather than by industry in the “Portfolios of Investments.”

19

Seligman Portfolios, Inc.
Portfolios of Investments
December 31, 2003
Seligman Capital Portfolio
	Shares		Value
Common Stocks 96.2%
Automobiles and Components 1.9%
Gentex*	7,100	$	313,465
Capital Goods 5.0%
Chicago Bridge & Iron (NY shares)	3,000		86,700
Fastenal	5,300		264,549
Navistar International*	3,300		158,037
Rockwell Automation	9,400		334,640
			843,926
Chemicals 2.7%
Georgia Gulf	6,600		190,608
Lyondell Chemical	15,100		255,945
			446,553
Commercial Services and Supplies 4.7%
Allied Waste Industries*	24,300		337,284
H&R Block	1,700		94,129
Herman Miller	6,400		155,520
Robert Half International*	8,400		196,056
			782,989
Communications Equipment 2.6%
Arris Group*	5,700		41,411
JDS Uniphase*	17,400		63,684
Juniper Networks*	7,300		136,327
QLogic*	2,100		108,224
UTStarcom*	2,500		92,662
			442,308
Computers and Peripherals 1.7%
Lexmark International (Class A)*	2,400		188,736
Network Appliance*	5,000		102,675
			291,411
Consumer Durables and Apparel 3.3%
Brunswick	8,600		273,738
Reebok International	6,200		243,784
Tempur-Pedic International*	2,600		40,300
			557,822
Consumer Staples 3.3%
Clorox	3,400		165,104
Pepsi Bottling Group	7,500		181,350
Smithfield Foods*	10,500		217,350
			563,804
Containers and Packaging 1.7%
Ball	4,900		291,893
Electronic Equipment and Instruments 3.7%
Flextronics International* (Singapore)	10,300	$	152,543
Molex	7,000		244,195
Vishay Intertechnology*	9,900		226,710
			623,448
Energy 1.5%
Smith International*	6,200		257,424
Financials 3.8%
AmeriTrade Holding*	25,200		355,068
T. Rowe Price Group	6,100		289,323
			644,391
Health Care Equipment and Supplies 6.2%
Biomet	2,200		80,168
INAMED*	2,250		108,169
Millipore*	5,100		219,555
St. Jude Medical*	4,700		288,345
VISX*	9,000		208,350
Zimmer Holdings*	2,000		140,800
			1,045,387
Health Care Providers and Services 4.9%
Anthem*	1,200		90,000
Caremark Rx*	7,400		187,442
CIGNA	1,000		57,500
IMS Health	5,200		129,272
Laboratory Corporation of America Holdings*	3,200		118,240
Henry Schein*	3,600		243,522
			825,976
Hotels, Restaurants and Leisure 7.6%
P.F. Chang’s China Bistro*	2,800		142,478
International Game Technology	5,900		210,630
Mandalay Resort Group	4,100		183,352
Royal Caribbean Cruises	4,800		166,992
Starbucks*	5,700		188,898
Station Casinos	6,800		208,284
Wendy’s International	2,500		98,100
Yum! Brands*	2,500		86,000
			1,284,734
Media 3.7%
Emmis Communications (Class A)*	6,800		183,872
The Interpublic Group of Companies*	8,800		137,280
Univision Communications (Class A)*	7,500		297,675
			618,827
Office Electronics 1.0%
Zebra Technologies (Class A)*	2,450		162,521
Paper and Forest Products 2.3%
MeadWestvaco	12,900		383,775

________________

* Non-income producing security.
See Notes to Financial Statements.

20 

Seligman Portfolios, Inc.
Portfolios of Investments
December 31, 2003
Seligman Capital Portfolio (continued)
		Shares			Value
Pharmaceuticals and Biotechnology 12.8%
Affymetrix*		10,500		$	258,143
Angiotech Pharmaceuticals* (Canada)		2,700			123,903
Biogen Idec*		8,485			312,121
Chiron*		3,700			210,363
Gen-Probe*		2,500			91,588
Genzyme*		3,300			162,871
Invitrogen*		3,000			209,910
Martek Biosciences*		2,200			142,758
MedImmune*		6,400			162,688
Millennium Pharmaceuticals*		7,000			130,620
OSI Pharmaceuticals*		1,400			45,143
Protein Design Labs*		3,100			55,800
Taro Pharmaceutical Industries* (Israel)		600			38,694
Telik*		2,100			48,289
Watson Pharmaceuticals*		3,600			165,600
					2,158,491
Retailing 4.8%
Chico’s FAS*		5,600			206,920
Claire’s Stores		3,200			60,288
PETsMART		2,900			68,948
Staples*		11,400			311,163
Tractor Supply*		2,100			81,658
Urban Outfitters*		2,300			85,204
					814,181
Semiconductors and Semiconductor Equipment 2.8%
Broadcom (Class A)*		3,400			115,974
KLA-Tencor*		2,200			129,107
Novellus Systems*		3,200			134,576
PMC-Sierra*		4,200			84,567
					464,224
Software and Services 10.4%
Ceridian*		6,800			142,392
Citrix Systems*		3,400			72,097
Cognizant Technology Solutions*		700			31,944
		Shares or
		Principal
		Amount			Value
Software and Services (continued)
Fiserv*		5,400	shs.	$	214,002
Mercury Interactive*		3,000			145,515
Networks Associates*		19,200			288,768
Siebel Systems*		18,400			256,496
Symantec*		2,600			89,947
Synopsys*		2,700			91,368
Unisys*		7,200			106,920
VeriSign*		11,300			184,247
VERITAS Software*		3,200			118,880
					1,742,576
Telecommunication Services 0.9%
Nextel Communications (Class A)*		5,400			151,308
Transportation 2.9%
CP Ships (Canada)		7,100			147,467
CSX		9,300			334,242
					481,709
Total Common Stocks
(Cost $13,569,572)					16,193,143
Repurchase Agreement 3.5%
State Street Bank & Trust, 0.72%, dated 12/31/2003, maturing 1/2/2004, in the amount of $600,024, collateralized by: $570,000 US Treasury Notes 5%, 2/15/2011, with a fair market value of $622,725 (Cost $600,000)	$	600,000			600,000
Total Investments 99.7%
(Cost $14,169,572)					16,793,143
Other Assets Less Liabilities 0.3%					45,684
Net Assets 100.0%				$	16,838,827

________________

* Non-income producing security.

See Notes to Financial Statements.

21

Seligman Portfolios, Inc.
 

Portfolios of Investments
December 31, 2003

Seligman Cash Management Portfolio

	Annualized			Principal
	Yield on			Amount
	Purchase Date			or Shares		Value
US Government
and Government
Agency
Securities 61.9%
US Government
Securities 24.8%
US Treasury Bills, 1/2/2004
(Cost $999,974)	0.93	%	$	1,000,000	$	999,974
US Government
Agency Securities 37.1%
Federal Home Loan Mortgage:
1/22/2004	1.06			1,000,000		999,388
2/3/2004	1.04			500,000		499,528
Total US Government
Agency Securities
(Cost $1,498,916)						1,498,916
Total US Government
and Government
Agency Securities
(Cost $2,498,890)						2,498,890

	Annualized			Principal
	Yield on			Amount
	Purchase Date			or Shares		Value
Commercial Paper 17.2%
AIG Funding, 1/6/2004	1.05	%	$	270,000	$	269,961
American Express Credit,
2/19/2004	1.07			200,000		199,711
General Electric Capital,
1/15/2004	1.10			225,000		224,906
Total Commercial Paper
(Cost $694,578)						694,578
Repurchase
Agreement 23.6%
State Street Bank & Trust, 0.72%, dated 12/31/2003, maturing 1/2/2004, in the amount of $950,038, collateralized by: $900,000 US Treasury Notes 5%, 2/15/2011, with a fair market value of $983,250 (Cost $950,000)	0.73			950,000		950,000
Total Investments 102.7%
(Cost $4,143,468)						4,143,468
Other Assets Less Liabilities (2.7)%						(109,723	)
Net Assets 100.0%					$	4,033,745

Seligman Common Stock Portfolio
Common Stocks 97.9%
Automobiles and
Components 1.0%
Lear	1,980	shs.	$	121,433
Banks 5.9%
Bank of America	1,070			86,060
Fannie Mae	1,300			97,578
Freddie Mac	1,200			69,984
Radian Group	1,480			72,150
U.S. Bancorp	6,930			206,375
Wachovia	4,240			197,542
				729,689
Capital Goods 10.1%
Deere	1,330 shs.		$	86,517
General Dynamics	1,400			126,546
General Electric	11,410			353,482
Illinois Tool Works	1,990			166,981
L-3 Communications Holdings*	2,500			128,400
Masco	3,800			104,158
Parker Hannifin	1,200			71,400
Tyco International	7,620			201,930
				1,239,414
Chemicals 1.1%
Praxair	3,600			137,520
Commercial Services and Supplies 1.0%
ServiceMaster	10,600			123,490
Communications Equipment 1.3%
Cisco Systems*	6,770			164,511

_________________

* Non-income producing security.

See Notes to Financial Statements.

22

Seligman Portfolios, Inc.
Portfolios of Investments
December 31, 2003
Seligman Common Stock Portfolio (continued)
	Shares		Value
Computers and Peripherals 4.4%
Dell*	5,880	$	199,626
Hewlett-Packard	3,760		86,367
International Business Machines	2,720		252,090
			538,083
Consumer Durables and Apparel 0.8%
Pulte Homes	1,030		96,429
Consumer Staples 8.7%
Altria Group	6,670		362,981
Dean Foods*	4,500		147,915
PepsiCo	2,500		116,550
Procter & Gamble	1,610		160,807
Wal-Mart Stores	5,410		287,001
			1,075,254
Diversified Financials 10.1%
American Express	1,630		78,615
Capital One Financial	700		42,903
Citigroup	8,960		434,918
Goldman Sachs Group	2,130		210,295
MBNA	1,700		42,245
Merrill Lynch	4,100		240,465
J.P. Morgan Chase	1,640		60,237
Morgan Stanley	2,190		126,735
			1,236,413
Electronic Equipment and Instruments 1.0%
Jabil Circuit*	4,350		123,105
Energy 7.3%
BP (ADR) (United Kingdom)	2,300		113,505
ChevronTexaco	1,050		90,709
ConocoPhillips	1,314		86,159
Exxon Mobil	8,050		330,050
Noble*	1,000		35,780
Noble Energy	1,590		70,644
Occidental Petroleum	1,650		69,696
Rowan Companies*	2,020		46,803
Transocean*	500		12,005
Weatherford International*	1,190		42,840
			898,191
Health Care 11.6%
Aetna	1,600	$	108,128
Amgen*	500		30,900
Anthem*	400		30,000
Aventis (ADR) (France)	1,000		66,260
Biogen Idec*	1,245		45,797
Forest Laboratories*	900		55,620
Genta*	1,800		18,756
Gilead Sciences*	200		11,629
Johnson & Johnson	3,480		179,777
Laboratory Corporation of America Holdings*	900		33,255
McKesson	800		25,728
MedImmune*	1,300		33,046
Medtronic	1,500		72,915
Novartis (ADR) (Switzerland)	2,800		128,492
Onyx Pharmaceuticals*	700		19,796
Pfizer	9,400		332,102
St. Jude Medical*	600		36,810
Teva Pharmaceutical Industries (ADR)
(Israel)	1,250		70,881
Watson Pharmaceuticals*	700		32,200
Wyeth	2,170		92,117
			1,424,209
Hotels, Restaurants and Leisure 3.4%
International Game Technology	3,300		117,810
Royal Caribbean Cruises	5,360		186,474
Wendy’s International	2,800		109,872
			414,156
Insurance 5.2%
American International Group	3,700		245,236
Hartford Financial Services Group	1,150		67,885
PartnerRe	1,710		99,266
Prudential Financial	4,100		171,257
XL Capital (Class A)	800		62,040
			645,684
Media 3.7%
Clear Channel Communications*	2,820		132,061
Time Warner	6,790		122,152
Tribune	2,400		123,840
Univision Communications (Class A)*	1,980		78,586
			456,639
Metals and Mining 2.2%
BHP Billiton (ADR) (Australia)	3,700		67,562
Freeport-McMoRan Copper & Gold (Class B)	4,800		202,224
			269,786
Paper and Forest Products 1.6%
Weyerhaeuser	3,020		193,280

________________ 

* Non-income producing security.

ADR— American Depository Receipts.

See Notes to Financial Statements.

23

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Common Stock Portfolio (continued)
		Shares		Value
Real Estate 0.7%
Apartment Investment & Management (Class A)		2,600	$	89,700
Retailing 3.3%
Advance Auto Parts*		900		73,260
eBay*		2,360		152,491
Kohl’s*		400		17,976
Michaels Stores		2,650		117,130
Target		1,100		42,240
				403,097
Semiconductors and Semiconductor
Equipment 3.5%
Intel		6,160		197,459
National Semiconductor*		3,300		130,053
Taiwan Semiconductor Manufacturing
(ADR) (Taiwan)		9,700		99,328
				426,840
Software and Services 6.7%
Electronic Arts*		2,400		114,732
Microsoft		14,070		387,136
Oracle*		9,800		129,409
Symantec*		3,600		124,542
Synopsys*		2,000		67,680
				823,499
		Shares or
		Principal
		Amount		Value
Utilities 0.6%
Duke Energy		3,900 shs.	$	79,754
Miscellaneous 2.7%
SPDR Trust (Series 1)		3,000		333,840
Total Common Stocks
(Cost $10,767,944)				12,044,016
Repurchase Agreement 2.1%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing 1/2/2004, in the amount of $250,010, collateralized by: $240,000 US Treasury Notes 5%, 2/15/2011, with a fair market value of $262,200 (Cost $250,000)	$	250,000		250,000
Total Investments 100.0%
(Cost $11,017,944)				12,294,016
Other Assets Less Liabilities				2,817
Net Assets 100.0%			$	12,296,833

Seligman Communications and Information Portfolio

Common Stocks 98.7%
Application Software 15.9%
Autodesk	143,900		$	3,530,587
Hyperion Solutions*	10,600			318,901
Magma Design Automation*	44,600			1,040,964
PeopleSoft*	39,500			900,797
Synopsys*	177,300			5,999,832
				11,791,081
Biotechnology 0.8%
Invitrogen*	5,800			405,826
OraSure Technologies*	17,500			139,475
				545,301
Commercial Services and Supplies 0.8%
Corinthian Colleges*	10,700			594,545
Communications Equipment 2.7%
Avaya*	16,900			218,686
Cisco Systems*	48,800			1,185,840
Nokia (ADR) (Finland)	35,400			601,800
				2,006,326
Computers and Peripherals 7.0%
Electronics For Imaging*	17,800	shs.	$	465,203
Hewlett-Packard	75,600			1,736,532
Lexmark International (Class A)*	26,700			2,099,688
Seagate Technology	48,100			909,090
				5,210,513
Data Processing and Outsourced
Services 6.7%
Affiliated Computer Services (Class A)*	23,000			1,252,580
Computer Sciences*	11,600			513,068
First Data	24,000			986,160
SunGard Data Systems*	80,400			2,227,884
				4,979,692
Electronic Equipment and Instruments 4.0%
Amphenol (Class A)*	18,820			1,203,163
Itron*	33,000			608,025
Orbotech* (Israel)	39,300			940,449
Varian*	5,600			233,772
				2,985,409

_______________ 

* Non-income producing security.

ADR — American Depository Receipts.

See Notes to Financial Statements.

24

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Communications and Information Portfolio (continued)

		Shares		Value
Financials 1.2%
AmeriTrade Holding*		61,700	$	869,353
Health Care Equipment and Supplies 7.9%
Apogent Technologies*		30,400		700,416
Becton, Dickinson		28,500		1,172,490
Dade Behring Holdings*		3,600		128,484
Fisher Scientific International*		31,900		1,319,703
Guidant		3,600		216,720
INAMED*		26,700		1,283,603
St. Jude Medical*		7,000		429,450
STERIS*		26,700		603,420
				5,854,286
Health Care Providers and Services 11.1%
Laboratory Corporation of America Holdings*		117,400		4,337,930
Quest Diagnostics*		53,300		3,896,763
				8,234,693
Home Entertainment Software 3.5%
Activision*		26,600		483,854
Electronic Arts*		11,500		549,758
Take-Two Interactive Software*		44,300		1,276,061
THQ*		17,600		297,528
				2,607,201
IT Consulting and Other Services 5.3%
Accenture (Class A)* (Bermuda)		40,900		1,076,488
Amdocs*		124,900		2,807,752
				3,884,240
Retailing 1.6%
InterActive*		35,700		1,211,480
Semiconductors and
Semiconductor Equipment 13.1%
Advanced Micro Devices*		75,100		1,118,990
Amkor Technology*		122,500		2,231,337
Conexant Systems*		89,300		445,607
Fairchild Semiconductor International*		13,400		334,598
		Shares or
		Principal
		Amount		Value
Semiconductors and
Semiconductor Equipment (continued)
Integrated Circuit Systems*		8,800 shs.	$	250,624
Intel		38,400		1,230,912
Intersil (Class A)		35,600		882,880
Marvell Technology Group*		35,400		1,340,067
National Semiconductor*		15,900		626,619
Silicon Laboratories*		14,200		613,653
Taiwan Semiconductor
Manufacturing* (Taiwan)		342,000		639,676
Tessera Technologies*		900		16,925
				9,731,888
Systems Software 17.1%
BMC Software*		53,400		995,910
Citrix Systems*		42,600		903,333
Computer Associates International		116,000		3,171,440
Microsoft*		133,700		3,678,755
Symantec*		114,200		3,950,749
				12,700,187
Total Common Stocks
(Cost $66,618,016)				73,206,195
Repurchase Agreement 0.8%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing 1/2/2004, in the amount of $600,024, collateralized by: $570,000 US Treasury Notes 5%, 2/15/2011, with a fair market value of $622,725 (Cost $600,000)	$	600,000		600,000
Total Investments 99.5%
(Cost $67,218,016)				73,806,195
Other Assets Less Liabilities 0.5%				376,482
Net Assets 100.0%			$	74,182,677

________________

* Non-income producing security.

See Notes to Financial Statements.

25

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Frontier Portfolio

	Shares		Value
Common Stocks 99.0%
Capital Goods 6.0%
AMETEK	2,200	$	106,172
Chicago Bridge & Iron (NY shares)	2,559		73,955
CLARCOR	1,215		53,582
Graco	2,392		95,919
Wabash National*	4,000		117,200
			446,828
Chemicals 0.5%
Airgas*	1,920		41,242
Communications Equipment 6.1%
Andrew*	6,994		80,816
ARRIS Group*	11,869		86,228
Enterasys Networks*	20,321		76,204
Packeteer*	5,096		86,734
Stratex Networks*	8,800		38,280
Tekelec*	5,873		90,738
			459,000
Computers and Peripherals 1.7%
Synaptics*	4,730		70,879
UNOVA*	2,545		58,408
			129,287
Construction Materials 1.2%
AMCOL International	4,562		92,609
Consumer Durables and Apparel 2.3%
Tempur-Pedic International*	1,400		21,700
Warnaco Group*	4,517		72,114
Wolverine World Wide	3,854		78,544
			172,358
Consumer Staples 1.3%
Hain Celestial Group*	2,310		53,569
SunOpta* (Canada)	4,500		41,175
			94,744
Diversified Commercial Services 4.8%
Corinthian Colleges*	1,628		90,460
The Corporate Executive Board*	2,200		102,696
DiamondCluster International*	5,288		53,964
Education Management*	1,994		62,183
LECG*	2,300		52,727
			362,030
Electronic Equipment and Instruments 0.5%
Electro Scientific Industries*	1,639		39,221
Employment Services 1.5%
Resources Connection*	4,100		112,073
Energy 4.4%
Key Energy Services*	4,126		42,539
Patina Oil & Gas	1,798		88,084
Superior Energy Services*	5,286		49,688
Ultra Petroleum*	1,914		47,123
Unit*	1,650		38,857
			328,515
Environmental Services 0.6%
Duratek*	3,200		41,632
Financials 10.5%
Affiliated Managers Group*	1,500		104,385
Aspen Insurance Holdings*	1,700		42,177
Boston Private Financial Holdings	1,500		37,343
CapitalSource*	2,957		64,108
Corrections Corporation of America*	1,968		56,737
East West Bancorp	1,380		74,237
First Marblehead*	2,500		54,700
Investors Financial Services	2,956		113,377
Jefferies Group	1,690		55,804
Southwest Bancorporation of Texas*	1,229		47,753
UCBH Holdings	1,930		75,145
Wintrust Financial	1,300		58,825
			784,591
Health Care Equipment and Supplies 4.2%
Cooper Companies	1,764		83,137
Dade Behring Holdings*	2,041		72,843
Edwards Lifesciences*	1,583		47,617
Kensey Nash*	1,600		37,128
Respironics*	1,670		75,284
			316,009
Health Care Providers and Services 6.3%
Accredo Health*	2,561		81,030
Community Health Systems*	3,874		102,971
IDX Systems*	2,321		62,319
LabOne*	1,400		45,437
Pediatrix Medical Group*	1,173		64,621
Select Medical*	4,180		68,050
United Surgical Partners International*	1,354		45,325
			469,753
Hotels, Restaurants and Leisure 2.7%
Alliance Gaming*	4,191		103,308
RARE Hospitality International*	200		4,890
Station Casinos*	2,978		91,216
			199,414

_________________
* Non-income producing security.
See Notes to Financial Statements.

26

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Frontier Portfolio (continued)

	Shares		Value
Media 3.8%
Cox Radio (Class A)*	4,200	$	105,966
Cumulus Media (Class A)*	5,400		118,827
Harris Interactive*	7,000		58,310
			283,103
Metals and Mining 2.6%
Century Aluminum*	3,900		74,353
GrafTech International*	9,200		124,200
			198,553
Office Electronics 0.8%
Zebra Technologies (Class A)*	897		59,502
Pharmaceuticals and Biotechnology 8.0%
Alexion Pharmaceuticals*	1,800		30,618
Alkermes*	1,800		24,363
Cell Genesys*	2,393		30,870
Cubist Pharmaceuticals*	2,400		29,172
Gen-Probe*	1,280		46,893
Genelabs Technologies*	2,110		5,919
Kosan Biosciences*	3,418		33,684
Ligand Pharmaceuticals*	4,545		66,743
Maxygen*	3,262		34,284
Medicis Pharmaceutical (Class A)	1,311		93,474
Onyx Pharmaceuticals*	620		17,534
Telik*	1,300		29,894
United Therapeutics*	1,600		36,912
Vicuron Pharmaceuticals*	2,162		40,267
XOMA*	5,476		36,169
ZymoGenetics*	2,850		44,189
			600,985
Retailing 6.5%
Advance Auto Parts*	1,400		113,960
AnnTaylor Stores*	2,236		87,204
Chico’s FAS*	1,754		64,810
Cost Plus*	752		30,836
Hot Topic*	2,526		74,403
The Pep Boys - Manny, Moe & Jack	5,000		114,350
			485,563
Semiconductors and
Semiconductor Equipment 7.5%
Actel*	3,467		83,728
Asyst Technologies*	5,994		103,876
ATMI*	3,012		69,773
Cymer*	857		39,615
DSP Group*	2,878		71,605

		Shares or
		Principal
		Amount			Value
Semiconductors and Semiconductor Equipment (continued)
Entegris*		3,037	shs.	$	39,056
Helix Technology		4,067			83,719
Micrel*		4,830			75,276
					566,648
Software and Services 11.4%
Agile Software*		8,910			88,343
CACI International (Class A)*		833			40,500
Digital River*		2,764			61,292
DoubleClick*		4,300			44,118
FileNET*		3,608			97,741
Jack Henry & Associates		5,000			102,875
Hyperion Solutions*		2,441			73,437
Informatica*		8,491			87,118
iPayment Holdings*		1,370			46,553
Macrovision*		2,358			53,656
Manhattan Associates*		2,614			72,251
Retek*		9,629			89,405
					857,289
Transportation 3.8%
Central Freight Lines*		2,200			39,193
J.B. Hunt Transport Services*		2,018			54,496
Old Dominion Freight Line*		2,053			69,976
Pacer International*		2,770			56,397
UTI Worldwide		1,673			63,273
					283,335
Total Common Stocks
(Cost $5,862,450)					7,424,284
Repurchase Agreement 1.3%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$100,004, collateralized by:
$95,000 US Treasury Notes
5%, 2/15/2011, with a fair
market value of $103,788
(Cost $100,000)	$	100,000			100,000
Total Investments 100.3%
(Cost $5,962,450)					7,524,284
Other Assets Less Liabilities (0.3)%					(21,566	)
Net Assets 100.0%				$	7,502,718

27

_____________

* Non-income producing security.

See Notes to Financial Statements.

27

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Growth Portfolio

	Shares		Value
Common Stocks 95.9%
Canada 1.6%
Research In Motion* (Communications
Equipment)		700	$	46,792
Finland 0.2%
Nokia (Communications Equipment)		326		5,631
France 5.4%
Pinault-Printemps-Redoute* (Retailing)		386		37,278
Renault* (Automobiles and Components)		300		20,676
Sanofi-Synthelabo* (Health Care)		100		7,522
Total (Energy)		300		55,715
Wanadoo* (Software and Services)		4,226		34,610
				155,801
Germany 12.4%
Allianz (Insurance)		400		50,438
Bayerische Motoren Werke “BMW”
(Automobiles and Components)		750		34,727
Deutsche Bank (Diversified Financials)		600		49,667
Deutsche Telekom* (Telecommunication
Services)		2,000		36,564
Muenchener Rueckversicherungs-Gesellschaft*
(Insurance)		357		43,235
SAP (Software and Services)		200		33,552
Schering (Health Care)		700		35,411
Siemens (Capital Goods)		900		72,006
				355,600
Hong Kong 2.1%
China Merchants Holdings International
(Capital Goods)		16,000		21,021
CNOOC (Energy)		11,000		21,607
Techtronic Industries (Consumer Durables
and Apparel)		6,000		16,616
				59,244
Israel 0.8%
Teva Pharmaceutical Industries (ADR)
(Health Care)		400		22,682
Italy 1.4%
Mediaset (Media)		3,400		40,354
Japan 3.1%
Advantest (Semiconductors and
Semiconductor Equipment)		100		7,934
Dentsu (Media)		3		15,121
Fast Retailing (Retailing)		300		18,229
Japan Tobacco (Consumer Staples)		1		7,327
KDDI (Telecommunications)		2		11,462
Matsushita Electric Industrial
(Consumer Durables and Apparel)		2,000		27,666
				87,739

	Shares		Value
Netherlands 2.7%
ASML Holding* (Semiconductors and
Semiconductor Equipment)		1,000	$	19,806
European Aeronautic Defence and Space
(Capital Goods)		1,008		23,940
Schlumberger (Energy)		600		32,832
				76,578
Russia 1.4%
MMC Norilsk Nickel (ADR) (Metals and Mining)		600		39,900
South Korea 0.9%
Samsung Electronics (GDR)†(Semiconductors
and Semiconductor Equipment)		130		24,440
Sweden 3.9%
Atlas Copco (Capital Goods)		1,850		66,229
Telefonaktiebolaget LM Ericsson
(Communications Equipment)		24,940		44,729
				110,958
Switzerland 6.3%
ABB* (Capital Goods)		12,370		62,685
Credit Suisse Group (Diversified Financials)		1,115		40,777
Roche Holding (Health Care)		775		78,139
				181,601
United Kingdom 9.7%
AstraZeneca (Health Care)		600		28,704
British Airways* (Transportation)		7,500		31,127
The Carphone Warehouse Group* (Retailing)		9,622		25,334
Compass Group (Hotels, Restaurants and Leisure)		4,200		28,489
Corus Group* (Metals and Mining)		23,700		12,692
Imperial Tobacco Group (Consumer Staples)		2,200		43,198
Kingfisher (Retailing)		6,964		34,621
Vodafone Group (Telecommunication Services)		30,400		75,158
				279,323
United States 44.0%
Altera* (Semiconductors and Semiconductor
Equipment)		1,100		25,058
Altria Group (Consumer Staples)		1,200		65,304
Analog Devices* (Semiconductors and
Semiconductor Equipment)		400		18,260
Apache (Energy)		300		24,330
Apollo Group (Class A)*
(Commercial Services and Supplies)		300		20,348
Bank One (Banks)		1,200		54,708
Boston Scientific* (Health Care)		1,200		44,112
Cendant* (Commercial Services and Supplies)		3,100		69,037
Cisco Systems* (Communications Equipment)		1,900		46,170
Citigroup (Diversified Financials)		1,200		58,248
Clear Channel Communications (Media)		200		9,366

________________

* Non-income producing security.

† Rule 144A security.

ADR — American Depository Receipts.

GDR — Global Depository Receipts.

See Notes to Financial Statements.

28

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Growth Portfolio(continued)

	Shares		Value
United States (continued)
Comcast (Class A)* (Media)		1,600	$	50,024
Countrywide Financial (Banks)		265		20,125
Deere (Capital Goods)		600		39,030
Dell* (Computers and Peripherals)		1,100		37,345
Exxon Mobil (Energy)		800		32,800
Forest Laboratories* (Health Care)		800		49,440
Freddie Mac (Banks)		400		23,328
Gillette (Consumer Staples)		2,200		80,806
Guidant (Health Care)		1,100		66,220
KLA-Tencor* (Semiconductors and
Semiconductor Equipment)		100		5,868
Lennar (Consumer Durables and Apparel)		100		9,600
Eli Lilly (Health Care)		600		42,198
Medco Health Solutions* (Health Care)		600		20,394
Merrill Lynch (Diversified Financials)		900		52,785
Microsoft (Software and Services)		1,100		30,267

	Shares		Value
United States (continued)
Noble* (Energy)		800	$	28,624
NTL* (Telecommunications)		300		20,872
Pfizer (Health Care)		1,200		42,396
Staples* (Retailing)		600		16,377
Tyco International (Capital Goods)		1,500		39,750
United Technologies (Capital Goods)		500		47,385
Univision Communications (Class A)* (Media)		500		19,845
XM Satellite Radio Holdings (Class A)* (Media)		300		7,910
Yahoo!* (Software and Services)		1,000		45,175
				1,263,505
Total Investments 95.9%
(Cost $2,433,082)				2,750,148
Other Assets Less Liabilities 4.1%				119,006
Net Assets 100.0%			$	2,869,154

Seligman Global Smaller Companies Portfolio

Common Stocks 98.9%
Australia 1.0%
Adstream Marine* (Transportation)	14,507	$	18,132
AWB (Consumer Staples)	5,585		18,797
Mayne Group (Health Care Providers
and Services)	6,187		15,187
MYOB (Software and Services)	1,789		1,482
STW Communications Group (Media)	6,363		15,571
			69,169
Canada 1.1%
Dundee Wealth Management†(Financials)	2,700		16,818
Gildan Activewear* (Consumer Durables
and Apparel)	300		9,264
GMP Capital* (Financials)	518		6,686
GMP Capital*† (Financials)	800		10,325
Ritchie Bros. Auctioneers
(Commercial Services and Supplies)	600		31,860
			74,953
China 0.9%
Beijing Capital International Airport
(Transportation)	68,000		23,210
China Oilfield Services (Energy)	100,000		35,421
			58,631
Denmark 0.9%
Carlsberg (Class B) (Consumer Staples)	1,320		60,749
Finland 1.1%
Orion-Yhtyma (Class B)
(Pharmaceuticals and Biotechnology)	1,100		23,589

Finland (continued)
Pohjola Group (Financials)	1,000	$	26,711
TietoEnator (Software and Services)	700		19,139
			69,439
France 3.4%
April Group (Financials)	1,470		26,300
Cegedim (Health Care Providers and Services)	500		29,672
Havas* (Media)	8,228		47,377
NRJ Group (Media)	3,100		66,009
Remy Cointreau (Consumer Staples)	1,700		55,690
			225,048
Germany 1.5%
Aixtron (Semiconductors and Semiconductor
Equipment)	2,321		13,891
Elmos Semiconductor* (Semiconductors
and Semiconductor Equipment)	1,400		22,049
Fielmann (Retailing)	1,013		46,854
Jenoptik (Semiconductors and
Semiconductor Equipment)	1,300		14,250
			97,044
Greece 1.9%
Aktor (Capital Goods)	5,800		37,854
Bank of Piraeus (Financials)	2,575		30,951
Germanos (Retailing)	500		12,499
Intralot (Hotels, Restaurants and Leisure)	1,100		21,454
STET Hellas Telecommunications (ADR)
(Telecommunication Services)	1,900		24,576
			127,334

_____________

* Non-income producing security.

† Rule 144A security.

ADR — American Depository Receipts.

See Notes to Financial Statements.

29

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Smaller Companies Portfolio (continued)

	Shares		Value
Italy 2.0%
Amplifon (Health Care Equipment and Supplies)		582	$	16,536
Banca Popolare di Milano (Financials)		3,600		23,541
Brembo (Automobiles and Components)		3,100		23,474
Caltagirone Editore (Media)		3,450		29,863
Tod’s (Consumer Durables and Apparel)		900		39,121
				132,535
Japan 18.0%
77 Bank (Financials)		7,000		39,464
The Aichi Bank (Financials)		100		5,936
Alpine Electronics (Consumer Durables
and Apparel)		2,500		33,649
Asatsu-DK (Media)		1,000		25,762
Avex (Media)		1,100		20,073
Bellsystem24 (Commercial Services
and Supplies)		200		40,883
C&S (Consumer Staples)		1,100		19,919
Coca-Cola West (Consumer Staples)		1,100		21,562
FamilyMart (Consumer Staples)		1,900		43,272
Fujimi (Chemicals)		200		6,142
Hitachi Medical (Health Care Equipment
and Supplies)		1,000		12,694
Hokuto (Consumer Staples)		400		5,152
House Foods (Consumer Staples)		2,000		22,644
INES (Software and Services)		2,500		22,775
Japan Securities Finance (Financials)		3,000		15,765
Joyo Bank (Financials)		13,000		42,470
Kadokawa Holdings (Media)		1,200		32,034
Keihin (Automobiles and Components)		2,000		18,351
Kirin Beverage (Consumer Staples)		3,000		54,296
Kiyo Bank (Financials)		1,000		1,708
Kobayashi Pharmaceutical
(Health Care Equipment and Supplies)		1,000		24,315
Komori (Capital Goods)		3,000		44,439
KOSE (Consumer Staples)		1,000		36,029
Milbon (Consumer Staples)		900		23,984
Nagaileben (Health Care Providers
and Services)		600		16,213
NEC System Integration & Construction
(Capital Goods)		3,100		24,190
Nippon Shinyaku (Pharmaceuticals and
Biotechnology)		6,000		34,667
Okumura (Capital Goods)		5,000		21,282
Otsuka Kagu (Retailing)		1,200		37,187
PanaHome (Capital Goods)		5,000		26,415
Shiga Bank (Financials)		9,000		41,415
Sumitomo Osake Cement (Construction
Materials)		11,000		21,562
Suruga Bank (Financials)		5,000		32,156
Taiheiyo Cement (Construction Materials)		5,000		14,141
Taiyo Ink Manufacturing (Chemicals)		1,200		42,787

	Shares		Value
Japan (continued)
Tanabe Seiyaku (Pharmaceuticals and
Biotechnology)		4,000	$	32,482
Tokyo Ohka Kogyo (Chemicals)		2,500		44,337
Tokyo Tomin Bank (Financials)		1,100		18,882
Towa Pharmaceutical (Pharmaceuticals
and Biotechnology)		2,000		44,243
Tsuruha (Consumer Staples)		2,400		43,862
United Arrows (Retailing)		1,000		43,683
Xebio (Retailing)		1,400		31,362
				1,184,184
Mexico 0.7%
Grupo Financiero Banorte (Financials)		4,600		15,965
Kimberly-Clark de Mexico (Consumer Staples)		12,000		30,756
				46,721
Netherlands 2.0%
CSM (Consumer Staples)		1,600		34,956
Equant* (Telecommunication Services)		3,400		31,529
Koninklijke Vendex KBB (Retailing)		2,300		32,022
Randstad Holding* (Commercial Services
and Supplies)		1,000		24,229
SNT Group (Commercial Services and Supplies)		700		10,314
				133,050
New Zealand 0.4%
Warehouse Group (Retailing)		7,094		23,798
Singapore 1.4%
Keppel Land (Financials)		26,000		24,189
MobileOne (Telecommunication Services)		49,000		43,279
SembCorp Logistics* (Transportation)		22,000		25,908
				93,376
South Korea 1.5%
Cheil Communications (Media)		90		13,068
Korea Exchange Bank* (Financials)		7,830		41,532
LG Telecom* (Telecommunication Services)		5,660		17,267
Pusan Bank* (Financials)		4,590		25,695
				97,562
Spain 0.5%
Telefonica Publicidad de Informacion (Media)		6,200		33,981
Sweden 1.1%
Eniro (Media)		4,220		40,482
JM (Financials)		1,150		16,947
NCC (Class B) (Capital Goods)		1,960		15,123
				72,552
Switzerland 2.7%
Bachem Holding (Pharmaceuticals and
Biotechnology)		590		30,256
Baloise Holding* (Financials)		728		30,390
Clariant* (Chemicals)		3,020		44,544
Lindt & Sprungli (Consumer Staples)		30		24,974
Lonza Group (Chemicals)		779		44,764
				174,928

________________

* Non-income producing security.

See Notes to Financial Statements.

30

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Smaller Companies Portfolio(continued)

	Shares		Value
United Kingdom 3.7%
Aggreko (Commercial Services and Supplies)	8,700	$	23,994
Cambridge Antibody Technology Group*
(Pharmaceuticals and Biotechnology)	3,100		26,063
EMI Group (Media)	20,100		56,959
FirstGroup (Transportation)	7,500		36,616
HMV Group (Retailing)	9,855		29,378
Kesa Electricals (Retailing)	7,134		32,759
PHS Group (Commercial Services and Supplies)	2,860		4,276
Securicor (Commercial Services and Supplies)	18,800		31,965
			242,010
United States 53.1%
1-800 Contacts* (Health Care Equipment
and Supplies)	1,400		29,253
Abgenix* (Pharmaceuticals and Biotechnology)	2,800		34,650
Acadia Realty Trust (Financials)	1,700		21,250
Activision* (Software and Services)	1,350		24,557
Adaptec* (Communications Equipment)	4,100		36,285
AFC Enterprises* (Hotels, Restaurants
and Leisure)	2,000		39,000
AGCO* (Capital Goods)	2,100		42,294
Alliant Techsystems* (Capital Goods)	600		34,656
American Home Mortgage Holdings (Financials)	1,400		31,514
AmSurg* (Health Care Providers and Services)	800		30,356
Arch Coal (Metals and Mining)	1,100		34,287
Armor Holdings* (Capital Goods)	1,250		32,887
Array BioPharma* (Pharmaceuticals
and Biotechnology)	4,700		26,884
Asyst Technologies* (Semiconductors and
Semiconductor Equipment)	1,900		32,927
AtheroGenics* (Pharmaceuticals and
Biotechnology)	1,600		23,856
Bio-Rad Laboratories (Class A)*
(Health Care Equipment and Supplies)	600		34,602
Biosite* (Health Care Equipment and Supplies)	1,900		54,872
BISYS Group (Software and Services)	2,200		32,736
Bunge (Consumer Staples)	1,150		37,858
Cabot Oil & Gas (Energy)	1,000		29,350
Cal Dive International* (Energy)	1,450		35,047
Charming Shoppes* (Retailing)	4,700		25,732
Chicago Bridge & Iron (NY shares)
(Capital Goods)	1,200		34,680
CONMED* (Health Care Equipment and Supplies)	1,400		33,327
CV Therapeutics* (Pharmaceuticals and
Biotechnology)	3,300		48,626
Denbury Resources* (Energy)	2,600		36,166
DigitalNet Holdings* (Software and Services)	1,350		26,440
EDO (Capital Goods)	1,700		41,905
Electronics Boutique Holdings* (Retailing)	1,450		33,227
Encysive Pharmaceuticals* (Pharmaceuticals
and Biotechnology)	6,500		58,402

	Shares		Value
United States (continued)
Exelixis* (Pharmaceuticals and Biotechnology)	3,900	$	27,456
FEI* (Semiconductors and Semiconductor
Equipment)	1,100		24,695
Ferro (Chemicals)	1,600		43,536
First Community Bancorp (Financials)	700		25,431
First Financial (Financials)	100		3,050
First Marblehead* (Financials)	1,500		32,820
First Republic Bank (Financials)	800		28,640
FirstFed Financial* (Financials)	700		30,450
Forest Oil* (Energy)	1,100		31,427
Franklin Bancorp (Financials)	200		3,820
GameStop (Class A)* (Retailing)	2,100		32,361
Genesco* (Retailing)	2,350		35,556
Great Atlantic & Pacific Tea* (Consumer Staples)	3,900		32,760
Group 1 Automotive* (Retailing)	900		32,571
HCC Insurance Holdings* (Financials)	1,100		34,980
Human Genome Sciences* (Pharmaceuticals
and Biotechnology)	2,200		29,216
International Rectifier* (Semiconductors
and Semiconductor Equipment)	400		19,764
InVision Technologies* (Capital Goods)	1,100		36,932
Iomega* (Computers and Peripherals)	6,100		36,478
Iron Mountain (Commercial Services
and Supplies)	1,100		43,494
Itron* (Electronic Equipment and Instruments)	1,900		35,008
KNBT Bancorp* (Financials)	900		15,835
Kosan Biosciences* (Pharmaceuticals and
Biotechnology)	4,300		42,377
Lin TV* (Media)	1,400		36,134
Lithia Motors (Class A) (Retailing)	1,400		35,294
M/I Schottenstein Homes (Consumer Durables
and Apparel)	850		33,193
Magma Design Automation* (Software
and Services)	1,100		25,674
Maguire Properties (Financials)	1,000		24,300
Massey Energy (Metals and Mining)	1,900		39,520
MAXIMUS* (Software and Services)	800		31,304
MedCath* (Health Care Providers and Services)	3,100		32,147
MFA Mortgage Investments (Financials)	2,500		24,375
Monolithic System Technology* (Semiconductors
and Semiconductor Equipment)	3,800		32,547
MRV Communications* (Communications
Equipment)	7,300		26,900
MSC.Software* (Software and Services)	1,900		17,955
NBTY* (Consumer Staples)	1,400		37,604
NetBank (Financials)	2,700		36,194
Nexstar Broadcasting Group (Class A)* (Media)	2,400		32,892
Nuevo Energy* (Energy)	1,400		33,838
O’Reilly Automotive* (Retailing)	700		26,848
One Liberty Properties (Financials)	1,500		29,925

________________

* Non-income producing security.

See Notes to Financial Statements.

31

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Smaller Companies Portfolio(continued)

	Shares		Value
United States (continued)
OSI Systems* (Electronic Equipment and
Instruments)	1,400	$	26,887
Owens & Minor (Health Care Providers and
Services)	1,400		30,674
ParkerVision* (Media)	400		3,888
ParkerVision*† (Media)	2,000		17,496
Penn Virginia (Energy)	600		33,390
PFF Bancorp (Financials)	900		32,652
Pilgrim’s Pride (Consumer Staples)	2,550		41,642
Platinum Underwriters Holdings (Financials)	1,150		34,500
PNM Resources (Utilities)	950		26,695
PolyMedica (Health Care Equipment and
Supplies)	1,850		48,507
Quicksilver Resources* (Energy)	1,100		35,530
Regency Centers (Financials)	700		27,895
Regis (Retailing)	850		33,592
REMEC* (Communications Equipment)	2,600		21,853
Rotech Healthcare* (Health Care Equipment
and Supplies)	1,200		27,600
Rudolph Technologies* (Semiconductors and
Semiconductor Equipment)	1,100		26,999
ScanSoft* (Software and Services)	5,800		31,117
SCP Pool* (Consumer Durables and Apparel)	650		21,249
Seacoast Financial Services (Financials)	600		16,461
Shaw Group* (Capital Goods)	1,700		23,154
Shurgard Storage Centers (Financials)	900		33,885
SimpleTech* (Computers and Peripherals)	7,300		43,508
Standard Motor Products (Automobiles
and Components)	3,100		37,665

	Shares		Value
United States (continued)
Standard Pacific (Consumer Durables
and Apparel)	700	$	33,985
Steel Dynamics* (Metals and Mining)	1,700		39,950
SureBeam (Class A)* (Electronic Equipment
and Instruments)	8,500		2,040
Sycamore Networks* (Communications
Equipment)	4,900		25,602
Terex (Capital Goods)	950		27,056
THQ* (Software and Services)	1,900		32,120
TierOne* (Financials)	1,400		32,235
Timberland (Class A)* (Consumer Durables
and Apparel)	600		31,242
Tweeter Home Entertainment Group* (Retailing)	3,700		34,965
UGI (Utilities)	1,000		33,900
Universal Forest Products (Capital Goods)	1,250		40,244
USF (Transportation)	1,100		37,658
Value Line (Media)	400		19,760
Vintage Petroleum (Energy)	2,500		30,075
WCI Communities* (Consumer Durables and
Apparel)	1,600		32,976
Wheeling-Pittsburgh* (Metals and Mining)	1,000		24,390
XM Satellite Radio Holdings (Class A)* (Media)	1,500		39,548
Yankee Candle* (Consumer Durables
and Apparel)	1,100		30,063
			3,497,575
Total Investments 98.9%
(Cost $5,966,266)			6,514,639
Other Assets Less Liabilities 1.1%			72,586
Net Assets 100.0%		$	6,587,225

Seligman Global Technology Portfolio

Common Stocks 95.0%
Australia 0.1%
News Corp. (ADR) (Media)	285	$	8,634
Bermuda 1.6%
Accenture (Class A)* (IT Consulting
and Other Services)	7,600		200,032
Finland 0.9%
Nokia* (Communications Equipment)	6,600		114,008
France 1.1%
Alcatel* (Communications Equipment)	8,200		105,486
Business Objects (ADR)* (Application
Software)	1,000		34,630
			140,116

Germany 2.3%
Infineon Technologies* (Semiconductors and
Semiconductor Equipment)	9,500	$	131,904
SAP (Application Software)	900		150,986
			282,890
India 2.1%
Geometric Software (Application Software)	2,200		27,669
Mastek (IT Consulting and Other Services)	17,000		124,548
Moser Baer (Computers and Peripherals)	15,400		116,042
			268,259
Italy 0.8%
e.Biscom* (Telecommunication Services)	1,600		97,954
Japan 17.4%
Brother Industries (Office Electronics)	11,000		100,929
Canon (Office Electronics)	3,000		139,730
Dai Nippon Printing (Commercial Services
and Supplies)	8,000		112,382
Fujikura (Capital Goods)	45,000		265,459

_____________

* Non-income producing security.

† Rule 144A security.

ADR—American Depository Receipts.

See Notes to Financial Statements.

32

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Technology Portfolio(continued)

	Shares		Value
Japan (continued)
Hoya (Electronic Equipment and Instruments)	1,600	$	146,955
JSR (Materials)	3,000		67,065
Konica Minolta Holdings (Office Electronics)	9,000		121,053
Matsushita Electric Industrial
(Consumer Durables and Apparel)	12,000		165,996
NEC (Computers and Peripherals)	20,200		148,764
NEC Electronics (Semiconductors and
Semiconductor Equipment)	2,200		160,993
Nintendo (Home Entertainment Software)	300		28,002
Nippon Telegraph & Telephone “NTT”
(Telecommunication Services)	40		193,027
Oki Electric Industry* (Electronic Equipment
and Instruments)	52,000		203,370
Omron (Electronic Equipment and Instruments)	9,000		182,713
Yokogawa Electric (Electronic Equipment and
Instruments)	10,000		144,491
			2,180,929
Netherlands 2.3%
ASML Holding (NY shares)* (Semiconductors
and Semiconductor Equipment)	4,900		98,220
Koninklijke (Royal) Philips Electronics*
(Consumer Durables and Apparel)	6,500		189,591
			287,811
Russia 1.1%
VimpelCom (ADR)* (Telecommunication
Services)	1,800		132,300
Singapore 1.9%
Chartered Semiconductor Manufacturing*
(Semiconductors and Semiconductor
Equipment)	147,000		149,744
Flextronics International* (Electronic
Equipment and Instruments)	6,100		90,341
			240,085
South Korea 3.7%
Daibeck Advanced Materials (Materials)	5,770		115,013
Interflex (Electronic Equipment and Instruments)	7,000		176,248
Mirae (Semiconductors and
Semiconductor Equipment)	51,000		57,356
Seoul Semiconductor (Capital Goods)	5,200		94,050
Sindo Ricoh (Office Electronics)	340		18,120
			460,787
Switzerland 0.4%
Leica Geosystems* (Electronic Equipment
and Instruments)	300		49,463
Taiwan 5.4%
Acer (Computers and Peripherals)	100,470		149,447
Asia Optical (Consumer Durables and Apparel)	17,000		117,172
King Yuan Electronics* (Semiconductors and
Semiconductor Equipment)	142,000		143,464

	Shares		Value
Taiwan (continued)
Synnex Technology International (Electronic
Equipment and Instruments)	67,000	$	90,781
Taiwan Semiconductor Manufacturing*
(Semiconductors and Semiconductor
Equipment)	33,640		62,920
United Microelectronics (Semiconductors
and Semiconductor Equipment)	137,000		117,429
			681,213
United States 53.9%
Activision* (Home Entertainment Software)	4,000		72,760
Advanced Micro Devices* (Semiconductors
and Semiconductor Equipment)	10,100		150,490
Affiliated Computer Services (Class A)*
(Data Processing and Outsourced Services)	3,400		185,164
Amdocs* (IT Consulting and Other Services)	16,600		373,168
AmeriTrade Holding* (Financials)	6,300		88,767
Amkor Technology* (Semiconductors and
Semiconductor Equipment)	9,100		165,757
Amphenol (Class A)* (Electronic Equipment
and Instruments)	2,300		147,039
Autodesk (Application Software)	12,500		306,687
Avaya* (Communications Equipment)	6,600		85,404
Becton, Dickinson (Health Care)	1,200		49,368
BMC Software* (Systems Software)	7,200		134,280
Cisco Systems* (Communications Equipment)	10,800		262,440
Citrix Systems* (Systems Software)	3,400		72,097
Computer Associates International
(Systems Software)	7,400		202,316
Computer Sciences* (Data Processing
and Outsourced Services)	3,100		137,113
Conexant Systems* (Semiconductors and
Semiconductor Equipment)	19,000		94,810
Dell* (Computers and Peripherals)	900		30,555
Electronics For Imaging* (Computers
and Peripherals)	2,200		57,497
Fairchild Semiconductor International*
(Semiconductors and Semiconductor
Equipment)	2,700		67,419
Fisher Scientific International* (Health Care)	2,200		91,014
Hewlett-Packard (Computers and Peripherals)	8,300		190,651
Hughes Electronics* (Media)	2,552		42,235
Hyperion Solutions* (Application Software)	2,600		78,221
Intel (Semiconductors and Semiconductor
Equipment)	11,200		359,016
InterActive* (Retailing)	4,500		152,707
Intersil (Class A) (Semiconductors and
Semiconductor Equipment)	4,100		101,680
Invitrogen* (Health Care)	600		41,982
Itron* (Electronic Equipment and Instruments)	2,100		38,692
Laboratory Corporation of America Holdings*
(Health Care)	9,700		358,415

_____________

* Non-income producing security.

ADR—American Depository Receipts.

See Notes to Financial Statements.

33

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Global Technology Portfolio (continued)

	Shares or
	Principal
	Amount			Value
United States (continued)
Lexmark International (Class A)*
(Computers and Peripherals)		4,300	shs.	$	338,152
Marvell Technology Group*
(Semiconductors and Semiconductor
Equipment)		3,900			147,635
Microsoft (Systems Software)		8,800			242,132
National Semiconductor* (Semiconductors
and Semiconductor Equipment)		3,100			122,171
PeopleSoft* (Application Software)		6,800			155,074
Quest Diagnostics* (Health Care)		3,300			241,263
St. Jude Medical* (Health Care)		1,500			92,025
Seagate Technology
(Computers and Peripherals)		3,100			58,590
SunGard Data Systems* (Data Processing and
Outsourced Services)		4,250			117,767
Symantec* (Systems Software)		13,300			460,114
Symbol Technologies (Electronic Equipment
and Instruments)		6,400			108,096
Synopsys* (Application Software)		13,000			439,920

	Shares or
	Principal
	Amount			Value
United States (continued)
Take-Two Interactive Software* (Home
Entertainment Software)		2,900	shs.	$	83,534
Tessera Technologies* (Semiconductors and
Semiconductor Equipment)		100			1,880
					6,746,097
Total Common Stocks
(Cost $10,286,177)					11,890,578
Put Options Purchased 0.1%
Japan 0.1%
Topix Index,* expiring January 2004 @
¥966 (Premiums paid $82,272)		260,000			6,480
Total Investments 95.1%
(Cost $10,368,449)					11,897,058
Other Assets Less Liabilities 4.9%					620,231
Net Assets - 100.0%				$	12,517,289

Seligman High Yield Bond Portfolio

Corporate Bonds 93.3%
Aerospace 2.4%
BE Aerospace 9.50%, 11/1/2008	$	75,000	$	73,313
K & F Industries 9.625%, 12/15/2010		25,000		28,156
Sequa 9%, 8/1/2009		50,000		55,375
TD Funding 8.375%, 7/15/2011		25,000		26,719
				183,563
Airlines 2.5%
AMR 9%, 8/1/2012		75,000		64,125
Continental Airlines 8%, 12/15/2005		25,000		24,437
Delta Airlines 8.30%, 12/15/2029		50,000		33,313
Northwest Airlines 9.875%, 3/15/2007		75,000		68,625
				190,500
Auto 5.4%
Bombardier Recreational 8.375%,
12/15/2013† (Canada)		25,000		26,250
Delco Remy International 8.625%,
12/15/2007		50,000		51,375
Dura Operating 9%, 5/1/2009		50,000		50,250
Foamex 10.75%, 4/1/2009		75,000		71,812
Goodyear Tire & Rubber:
8.50%, 3/15/2007		25,000		24,688
7.857%, 8/15/2011		25,000		21,937
Stoneridge 11.50%, 5/1/2012		50,000		59,250
Tenneco Automotive:
(Series B) 11.625%, 10/15/2009		25,000		27,125
10.25%, 7/15/2013†		50,000		57,125

Auto (continued)
TRW Automotive Acquisition 11%,
2/15/2013	$	25,000	$	29,562
				419,374
Broadcasting 3.3%
Granite Broadcasting 9.75%, 12/1/2010†		50,000		50,125
Nextmedia 10.75%, 7/1/2011		25,000		28,500
Paxson Communications 0% (12.25%**),
1/15/2009		50,000		44,125
Sinclair Broadcast Group 8%, 3/15/2012		25,000		27,125
Young Broadcasting:
(Series B) 8.75%, 6/15/2007		51,000		52,530
8.75%, 1/15/2014†		50,000		50,875
				253,280
Building Products 1.8%
Associated Materials 9.75%, 4/15/2012		50,000		55,000
Euramax International 8.50%, 8/15/2011†		25,000		26,813
Koppers Industries 9.875%, 10/15/2013†		25,000		27,687
Texas Industries 10.25%, 6/15/2011†		25,000		28,375
				137,875
Cable 3.6%
Charter Communications:
10.25%, 9/15/2010†		100,000		105,500
0% (11.75%**), 5/15/2011		100,000		67,500
Insight Communications 0% (12.25%**),
2/15/2011		25,000		21,500

_________________

*	Non-income producing security.
†	Rule 144A security.
**	Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate.
	See Notes to Financial Statements.

34

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman High-Yield Bond Portfolio (continued)

	Principal
	Amount		Value
Cable (continued)
Insight Midwest/Insight Capital 10.50%,
11/1/2010	$	50,000	$	54,625
Mediacom Broadband 11%, 7/15/2013		25,000		28,188
				277,313
Capital Goods 3.4%
Blount 13%, 8/1/2009		75,000		81,187
Columbus McKinnon 10%, 8/1/2010		25,000		26,750
JLG Industries 8.375%, 6/15/2012		50,000		51,813
NMHG Holding 10%, 5/15/2009		25,000		27,750
Norcross Safety Products 9.875%,
8/15/2011†		25,000		27,562
Park-Ohio Industries 9.25%, 12/1/2007		50,000		50,000
				265,062
Chemicals 9.1%
ARCO Chemical 9.80%, 2/1/2020		75,000		75,750
Equistar Chemicals 10.125%, 9/1/2008		50,000		55,000
Hines Nurseries 10.25%, 10/1/2011†		25,000		27,375
Huntsman ICI Chemicals 10.125%, 7/1/2009		75,000		77,625
International Specialty Holdings 10.625%,
12/15/2009		50,000		55,250
Kraton Polymers 8.125%, 1/15/2014†		25,000		26,125
Lyondell Chemical 11.125%, 7/15/2012		75,000		83,625
Millennium America 7.625%, 11/15/2026		75,000		70,125
Nalco 8.875%, 11/15/2013†		50,000		53,250
Polyone 10.625%, 5/15/2010		50,000		50,250
Resolution Performance Products
13.50%, 11/15/2010		50,000		43,750
Rockwood Specialties Group 10.625%,
5/15/2011†		25,000		28,000
Terra Capital 11.50%, 6/1/2010		50,000		52,500
				698,625
Consumer Products 2.3%
Jostens 0% (10.25%**), 12/1/2013†		75,000		47,438
Playtex Products 9.375%, 6/1/2011		25,000		25,375
Rayovac 8.50%, 10/1/2013		25,000		26,625
Remington Arms 10.50%, 2/1/2011		25,000		26,750
Simmons 7.875%, 1/15/2014†		50,000		50,500
				176,688
Containers 4.3%
AEP Industries 9.875%, 11/15/2007		25,000		25,250
Anchor Glass Container 11%, 2/15/2013†		25,000		29,125
BWAY 10%, 10/15/2010		25,000		27,375
Crown Cork & Seal 8%, 4/15/2023		100,000		94,000
Owens-Illinois 7.80%, 5/15/2018		50,000		51,937
Pliant:
13%, 6/1/2010		25,000		23,000
11.125%, 9/1/2009		25,000		27,125
Tekni-Plex (Series B) 12.75%, 6/15/2010		50,000		54,750
				332,562

	Principal
	Amount		Value
Diversified Telecommunication 2.6%
LCI International 7.25%, 6/15/2007	$	50,000	$	48,250
Qwest Services 13.50%, 12/15/2010†		125,000		152,500
				200,750
Electric 1.3%
CMS Energy 9.875%, 10/15/2007		25,000		28,000
El Paso 7.875%, 6/15/2012		50,000		47,500
MSW Energy Holdings 8.50%, 9/1/2010†		25,000		27,375
				102,875
Energy 2.4%
Citgo Petroleum 11.375%, 2/1/2011		25,000		29,125
Dresser 9.375%, 4/15/2011		25,000		27,313
Dynegy Holdings 8.75%, 2/15/2012		75,000		76,031
El Paso Production Holdings 7.75%,
6/1/2013†		25,000		24,750
Suburban Propane Partners 6.875%,
12/15/2013†		25,000		25,375
				182,594
Finance 1.7%
Corrections Corporation of America 7.50%,
5/1/2011		50,000		52,750
Eircom Funding 8.25%, 8/15/2013 (Ireland)		25,000		27,812
Genesis Healthcare 8%, 10/15/2013†		25,000		26,188
Western Financial Bank 9.625%, 5/15/2012		25,000		28,000
				134,750
Food and Beverage 1.9%
Land O’Lakes 8.75%, 11/15/2011		50,000		44,000
Pinnacle Foods Holding 8.25%, 12/1/2013†		25,000		26,000
Pilgrim’s Pride 9.25%, 11/15/2013†		50,000		52,000
United Agricultural Products 8.25%,
12/15/2011†		25,000		25,813
				147,813
Food and Drug 1.9%
Couche-Tard 7.50%, 12/15/2013†		25,000		26,312
General Nutrition Centers 8.50%, 12/1/2010†		25,000		25,750
Rite Aid 7.70%, 2/15/2027		100,000		92,000
				144,062
Gaming 0.8%
Mandalay Resort Group 9.375%, 2/15/2010		50,000		58,500
Health Care Facilities and Supplies 2.7%
Alliance Imaging 10.375%, 4/15/2011		75,000		79,875
Medex 8.875%, 5/15/2013†		50,000		54,000
Province Healthcare 7.50%, 6/1/2013		50,000		50,250
Universal Hospital Services 10.125%, 11/1/2011†		25,000		26,375
				210,500
Industrials 0.3%
Sensus Metering Systems 8.625%,
12/15/2013†		25,000		25,781

________________
†	Rule 144A security.
**	Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate.
	See Notes to Financial Statements.

35

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman High-Yield Bond Portfolio (continued)

	Principal
	Amount		Value
Leisure 3.0%
Bally’s Health & Tennis 10.50%, 7/15/2011†	$	50,000	$	50,500
Imax 9.625%, 12/1/2010† (Canada)		50,000		52,813
Intrawest 7.50%, 10/15/2013†		50,000		52,250
Six Flags:
8.875%, 2/1/2010		50,000		51,562
9.625%, 6/1/2014†		25,000		26,250
				233,375
Lodging 1.0%
John Q. Hammons Hotels (Series B) 8.875%,
5/15/2012		25,000		27,688
MeriStar Hospitality 9.125%, 1/15/2011		50,000		53,250
				80,938
Metals and Mining 3.9%
Gerdau AmeriSteel 10.375%, 7/15/2011†		50,000		55,500
Hexcel 9.75%, 1/15/2009		25,000		26,313
IMCO Recycling 10.375%, 10/15/2010		75,000		77,437
Earle M. Jorgensen 9.75%, 6/1/2012		25,000		27,875
Neenah Foundry 11%, 9/30/2010		50,000		55,313
UCAR Finance 10.25%, 2/15/2012		25,000		28,875
United States Steel 10.75%, 8/1/2008		25,000		29,375
				300,688
Paper and Forest Products 5.2%
Buckeye Technologies:
8%, 10/15/2010		50,000		49,250
8.50% 10/1/2013		25,000		26,875
Caraustar Industries 9.875%, 4/1/2011		25,000		27,125
Georgia-Pacific 8.875%, 5/15/2031		150,000		165,750
Jefferson Smurfit 8.25%, 10/1/2012		25,000		27,250
Longview Fibre 10%, 1/15/2009		50,000		55,125
Tembec Industries 8.625%, 6/30/2009		50,000		51,750
				403,125
Property and Real Estate Development 0.3%
Forest City Enterprises 7.625%, 6/1/2015		25,000		26,656
Publishing 4.1%
Dex Media East 0% (9%**), 11/15/2013†		175,000		124,250
Houghton Mifflin 9.875%, 2/1/2013		50,000		55,250
Primedia 8.875%, 5/15/2011		25,000		26,500
Quebecor Media 11.125%, 7/15/2011 (Canada)		25,000		29,062
Vertis:
9.75%, 4/1/2009		25,000		27,281
10.875%, 6/15/2009		25,000		26,688
13.50%, 12/7/2009†		25,000		24,656
				313,687
Restaurants 0.7%
Buffets 11.25%, 7/15/2010		25,000		26,937
Domino’s 8.25%,7/1/2011†		25,000		26,906
				53,843

	Principal
	Amount		Value
Satellite 1.0%
EchoStar 6.375%, 10/1/2011†	$	50,000	$	51,500
PanAmSat 8.50%, 2/1/2012		25,000		27,875
				79,375
Services 4.0%
Mail-Well:
8.75%, 12/15/2008		25,000		25,063
9.625%, 3/15/2012		25,000		27,875
Mobile Mini 9.50%, 7/1/2013		25,000		27,625
NBC Acquisition 10.75%, 2/15/2009		95,000		99,156
Perry Judd’s Holdings 10.625%, 12/15/2007		50,000		47,750
Williams Scotsman:
9.875%, 6/1/2007		50,000		50,875
10%, 8/15/2008		25,000		27,531
				305,875
Stores 1.4%
Asbury Auto Group 8%, 3/15/2014†		50,000		50,500
Central Garden & Pet 9.125%, 2/1/2013		25,000		27,875
Hollywood Entertainment 9.625%, 3/15/2011		25,000		27,000
				105,375
Technology 1.5%
AMI Semiconductor 10.75%, 2/1/2013		32,000		38,320
Thomas & Betts 7.25%, 6/1/2013		50,000		51,750
Xerox 7.625%, 6/15/2013		25,000		27,125
				117,195
Textile and Apparel 0.7%
Russell 9.25%, 5/1/2010		50,000		52,062
Utilities 4.8%
AES 9.375%, 9/15/2010		100,000		111,375
Calpine:
8.625%, 8/15/2010		75,000		58,875
8.75%, 7/15/2013†		100,000		98,000
Edison Mission Energy 7.73%, 6/15/2009		50,000		47,875
National Waterworks (Series B) 10.50%,
12/1/2012		25,000		28,063
NRG Energy 8%, 12/15/2013†		25,000		26,406
				370,594
Wireless 5.5%
Alamosa Holdings 11%, 7/31/2010		75,000		81,750
Centenial Cellular Operating 10.75%,
12/15/2008		25,000		26,500
Dobson Communications 8.875%,
10/1/2013†		75,000		76,313
Nextel Partners:
12.50%, 11/15/2009		9,000		10,485
8.125%, 7/1/2011		25,000		26,750
Rural Cellular:
9.75%, 1/15/2010		50,000		49,125
9.875%, 2/1/2010		25,000		26,750

_____________
†	Rule 144A security.
**	Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate.
	See Notes to Financial Statements.

36

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman High-Yield Bond Portfolio (continued)

	Principal
	Amount
	or Shares			Value
Wireless (continued)
Triton PCS 8.75%, 11/15/2011	$	75,000		$	74,250
Western Wireless 9.25%, 7/15/2013		50,000			53,000
					424,923
Wireless Tower 2.5%
American Tower 9.375%, 2/1/2009		75,000			80,250
SBA Communications 10.25%, 2/1/2009		75,000			74,063
SBA Telecommunications 0% (9.75%**)†,
12/15/2011		50,000			35,500
					189,813
Total Corporate Bonds
(Cost $6,699,293)					7,199,991
Preferred Stocks 1.4%
Broadcasting 0.5%
Paxson Communications 14.25%		4	shs.		36,900
Cable 0.3%
CSC Holdings 11.75%		250			26,062
Publishing 0.6%
Primedia 8.625%		500			45,625
Total Preferred Stocks
(Cost $108,317)					108,587

	Principal  Amount, Warrants or Shares			Value
Asset-Backed Securities†† 0.6%
(Cost $46,754)
Utilities 0.6%
Midland Funding 11.75%, 7/23/2005	$	45,822		$	49,717
Warrants
(Cost $1,888)
Wireless Tower
American Tower†		25	wts.		3,138
Repurchase Agreement 2.6%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$200,008, collateralized by:
$190,000 US Treasury Notes
5%, 2/15/2011, with a fair
market value of $207,575
(Cost $200,000)	$	200,000			200,000
Total Investments 97.9%
(Cost $7,056,252)					7,561,433
Other Assets Less Libilities 2.1%					158,973
Net Assets 100.0%				$	7,720,406

Seligman Income and Growth Portfolio

Common Stocks 61.4%
Automobiles and Components 0.9%
Advance Auto Parts*	100	shs.	$	8,140
Lear*	300			18,399
				26,539
Banks 4.1%
Bank of America	200			16,086
Fannie Mae	200			15,012
Freddie Mac	200			11,664
Radian Group	240			11,700
U.S. Bancorp	1,100			32,758
Wachovia	660			30,749
				117,969
Capital Goods 6.5%
Deere	200			13,010
General Dynamics	200			18,078
General Electric	1,710			52,976
Illinois Tool Works	270			22,656
L-3 Communications Holdings*	400			20,544

Capital Goods (continued)
Masco	600	shs.	$	16,446
Parker-Hannifin	200			11,900
Tyco International	1,120			29,680
				185,290
Chemicals 0.8%
Praxair	600			22,920
Commercial Services and Supplies 0.6%
ServiceMaster	1,600			18,640
Communications Equipment 0.8%
Cisco Systems*	970			23,571
Computers and Peripherals 2.6%
Dell*	850			28,858
Hewlett-Packard	510			11,715
International Business Machines	380			35,218
				75,791
Consumer Durables and Apparel 0.7%
Pulte Homes	200			18,724

________________
*	Non-income producing security.
**	Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate.
†	Rulke 144A security.
††	Investments in asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This, in turn, may impact the ultimate yield realized from these investments.
See Notes to Financial Statements.

37

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Income and Growth Portfolio (continued)

	Shares		Value
Consumer Staples 5.8%
Altria Group	1,060	$	57,685
Dean Foods*	700		23,009
PepsiCo	400		18,648
Procter & Gamble	250		24,970
Wal-Mart Stores	800		42,440
			166,752
Diversified Financials 6.4%
American Express	280		13,504
Capital One Financial	100		6,129
Citigroup	1,373		66,645
Goldman Sachs Group	300		29,619
MBNA	200		4,970
Merrill Lynch	600		35,190
J.P. Morgan Chase	250		9,182
Morgan Stanley	300		17,361
			182,600
Electronic Equipment and Instruments 0.7%
Jabil Circuit*	670		18,961
Energy 4.5%
BP (ADR) (United Kingdom)	300		14,805
ChevronTexaco	130		11,231
ConocoPhillips	200		13,114
Exxon Mobil	1,224		50,184
Noble*	100		3,578
Noble Energy	250		11,108
Occidental Petroleum	260		10,982
Rowan*	310		7,183
Transocean*	100		2,401
Weatherford International*	140		5,040
			129,626
Health Care 7.3%
Aetna	200		13,516
Amgen*	100		6,180
Anthem*	100		7,500
Aventis (ADR) (France)	100		6,626
Biogen Idec*	200		7,357
Forest Laboratories*	100		6,180
Genta*	300		3,126
Johnson & Johnson	550		28,413
Laboratory Corporation of America Holdings*	100		3,695
McKesson	100		3,216
MedImmune*	200		5,084
Medtronic	200		9,722
Novartis (ADR) (Switzerland)	400		18,356
Onyx Pharmaceuticals*	100		2,828
Pfizer	1,420		50,169
St. Jude Medical*	100		6,135
Teva Pharmaceutical Industries (ADR) (Israel)	200		11,341

	Shares		Value
Health Care (continued)
Watson Pharmaceuticals*	100	$	4,600
Wyeth	350		14,857
			208,901
Hotels, Restaurants and Leisure 2.2%
International Game Technology	500		17,850
Royal Caribbean Cruises	850		29,572
Wendy’s International	400		15,696
			63,118
Insurance 3.3%
American International Group	600		39,768
Hartford Financial Services Group	180		10,625
PartnerRe	200		11,610
Prudential Financial	600		25,062
XL Capital (Class A)	100		7,755
			94,820
Media 2.5%
Clear Channel Communications*	420		19,669
Time Warner	1,020		18,350
Tribune	400		20,640
Univision Communications (Class A)*	320		12,701
			71,360
Metals and Mining 1.3%
BHP Billiton (ADR) (Australia)	500		9,130
Freeport-McMoRan Copper & Gold (Class B)	700		29,491
			38,621
Paper and Forest Products 1.0%
Weyerhaeuser	450		28,800
Real Estate 0.5%
Apartment Investment & Management (Class A)	400		13,800
Retailing 1.7%
eBay*	300		19,384
Kohl’s*	100		4,494
Michaels Stores	390		17,238
Target	200		7,680
			48,796
Semiconductors and Semiconductor
Equipment 2.3%
Intel	960		30,773
National Semiconductor*	500		19,705
Taiwan Semiconductor Manufacturing (ADR)
(Taiwan)	1,500		15,360
			65,838
Software and Services 4.5%
Electronic Arts*	400		19,122
Microsoft	2,120		58,332
Oracle*	1,570		20,732
Symantec*	600		20,757
Synopsys*	300		10,152
			129,095

_____________

* Non-income producing security.

ADR —American Depository Receipts.

See Notes to Financial Statements.

38

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Income and Growth Portfolio (continued)

	Shares or
	Principal
	Amount			Value
Utilities 0.4%
Duke Energy		600	shs.	$	12,270
Total Common Stocks
(Cost $1,521,054)					1,762,802
Corporate Bonds 24.3%
Automobiles and Components 1.7%
Delphi 6.50%, 8/15/2013	$	5,000			5,260
Ford Motor:
5.625%, 10/1/2008		20,000			20,553
7%, 10/1/2013		10,000			10,565
General Motors 8.25%, 7/15/2023		10,000			11,383
					47,761
Banks 2.3%
Bank of America 4.375%, 12/1/2010		15,000			15,060
Capital One Bank 4.875%, 5/15/2008		20,000			20,603
Marshall & Ilsley Bank 5.25%, 9/4/2012		10,000			10,503
US Bank National Association 2.85%,
11/15/2006		20,000			20,110
					66,276
Capital Goods 1.1%
General Electric 5%, 2/1/2013		15,000			15,198
Raytheon 4.85%, 1/15/2011		15,000			15,042
					30,240
Consumer Staples 3.0%
Anheuser-Busch 4.625%, 2/1/2015		5,000			4,890
Coca-Cola Enterprises 4.25%, 9/15/2010		5,000			5,005
Fortune Brand 2.875%, 12/1/2006		10,000			10,069
General Mills 2.625%, 10/24/2006		35,000			34,831
Kellogg 2.875%, 6/1/2008		15,000			14,498
Procter & Gamble 6.875%, 9/15/2009		15,000			17,349
					86,642
Diversified Financials 6.7%
American General Finance 3%, 11/15/2006		20,000			20,142
CIT Group 4.75%, 12/15/2010		15,000			15,116
Citigroup 6%, 10/31/2033		20,000			20,067
Franklin Resources 3.70%, 4/15/2008		5,000			4,978
General Electric Capital 4.25%, 12/1/2010		5,000			4,983
General Motors Acceptance 4.375%,
12/10/2007		35,000			35,391
Goldman Sachs Group 4.75%, 7/15/2013		15,000			14,646
International Lease Finance 4.375%,
11/1/2009		20,000			20,174
MBNA 4.625%, 9/15/2008		10,000			10,274
Merrill Lynch:
3.70%, 4/21/2008		10,000			10,075
4.50%, 11/4/2010		15,000			15,165
Nisource Finance 3.20%, 11/1/2006		10,000			10,088
SLMA 4%, 1/15/2009		10,000			10,080
					191,179

	Principal
	Amount		Value
Health Care 0.3%
UnitedHealth Group 3.30%, 1/30/2008	$	10,000	$	9,963
Insurance 0.7
Allstate 6.125%, 12/15/2032		5,000		5,159
MetLife 5%, 11/24/2013		15,000		14,923
				20,082
Media 1.9%
Cox Communications 7.75%, 11/1/2010		10,000		11,929
Time Warner:
9.15%, 2/1/2023		20,000		25,949
7.625%, 4/15/2031		15,000		17,371
				55,249
Real Estate 1.4%
Centex 5.125%, 10/1/2013		10,000		9,879
Pulte Homes 6.375%, 5/15/2033		10,000		9,766
Rouse 5.375%, 11/26/2013		10,000		9,966
Simon Property Group 6.35%, 8/28/2012		10,000		10,885
				40,496
Retailing 0.4%
Safeway 4.125%, 11/1/2008		10,000		9,967
Telecommunication Services 4.1%
AT&T 8.75%, 11/15/2031†		15,000		17,589
AT&T Broadband 9.455%, 11/15/2022		5,000		6,793
AT&T Wireless 8.75%, 3/1/2031		10,000		12,382
Bellsouth Telecommunications 5.875%,
1/15/2009		15,000		16,415
Sprint Capital:
7.125%, 1/30/2006		35,000		37,887
8.375%, 3/15/2012		10,000		11,702
Verizon Wireless 5.375%, 12/15/2006		15,000		16,020
				118,788
Utilities 0.7%
Consolidated Edison 5.875%, 4/1/2033		5,000		5,084
Dominion Resources 6.75%, 12/15/2032		10,000		10,732
Duke Energy 5.30%, 10/1/2015		5,000		5,077
				20,893
Total Corporate Bonds
(Cost $688,703)				697,536
US Government and Government Agency Securities 12.6%
Agency Securities 7.1%
FHLB 3.75%, 8/15/2007		20,000		20,484
FHLMC:
3.25%, 2/25/2008		30,000		29,764
4.75%, 10/11/2012		25,000		24,656
FNMA:
2.50%, 7/16/2007		25,000		24,702
3.50%, 10/15/2007		15,000		15,045

________________

† Rule 144A security.

See Notes to Financial Statements.

39

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Income and Growth Portfolio (continued)

	Principal
	Amount
	or Shares		Value
Agency Securities (continued)
FNMA: (continued)
3.25%, 8/15/2008	$	30,000	$	29,793
3.875%, 11/17/2008		40,000		40,086
4.625%, 5/1/2013		20,000		19,501
Total Agency Securities
(Cost $204,549)				204,031
Mortgage-Backed Securities††5.5%
FHLMC GOLD:
4.50%, 11/1/2007		2,834		2,898
5.50%, 6/1/2018		7,881		8,179
8%, 12/1/2023		5,111		5,584
6%, 3/1/2033		55,000		56,877
5%, 8/1/2033		7,455		7,365
FNM:
7%, 2/1/2012		2,176		2,328
8.50%, 9/1/2015		2,289		2,508
6.50%, 5/1/2017		7,036		7,470
6%, 3/1/2018		4,596		4,828

	Principal
	Amount
	or Shares		Value
Mortgage-Backed Securities†† (continued)
FNMA: (continued)
7%, 1/1/2032	$	6,774	$	7,174
6.50%, 7/1/2032		15,418		16,132
6%, 3/1/2033		20,124		20,818
5.50%, 8/1/2033		16,119		16,341
Total Mortgage-Backed
Securities
(Cost $157,461)				158,502
Total US Government
Agency Securities
(Cost $362,010)				362,533
Total Investments 98.3%
(Cost $2,571,767)				2,822,871
Other Assets Less Liabilities 1.7%				47,690
Net Assets 100.0%			$	2,870,561

Seligman International Growth Portfolio

Common Stocks 96.6%
Brazil 3.8%
Empresa Brasileira de Aeronautica “Embraer”
(ADR) (Capital Goods)	2,500	shs.	$	87,575
Uniao de Bancos Brasileiros Unibanco
(GDR) (Banks)	1,800			44,910
				132,485
Canada 2.2%
Research In Motion* (Communications Equipment)	900			60,161
Talisman Energy (Energy)	300			16,980
				77,141
Finland 0.2%
Nokia (Communications Equipment)	398			6,875
France 19.8%
Alcatel* (Communications Equipment)	2,000			25,728
AXA (Insurance)	1,500			32,072
BNP Paribas* (Banks)	800			50,317
Club Mediterranee*(Hotels, Restaurants
and Leisure)	800			29,906
Essilor International (Health Care)	600			30,995
France Telecom (Telecommunication Services)	1,300			37,116
M6 Metropole Television (Media)	1,500			49,176

France (continued)
Pinault-Printemps-Redoute* (Retailing)	678	shs	$	65,478
Renault* (Automobiles and Components)	700			48,243
Rodriguez Group (Consumer Durables
and Apparel)	700			39,071
Total* (Energy)	500			92,858
Unibail (Real Estate)	500			46,839
Vivendi Universal* (Media)	3,100			75,266
Wanadoo* (Software and Services)	8,179			66,983
				690,048
Germany 15.3%
Allianz (Insurance)	700			88,267
Bayerische Motoren Werke “BMW”
(Automobiles and Components)	1,550			71,770
Deutsche Bank (Diversified Financials)	500			41,389
Muenchener Rueckversicherungs-
Gesellschaft* (Insurance)	685			82,958
SAP (Software and Services)	400			67,105
Schering (Health Care)	1,400			70,822
Siemens (Capital Goods)	1,400			112,010
				534,321

_____________
††	Investments in mortgage-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying mortgage instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments.
*	Non-income producing security.
	ADR — American Depository Receipts.
	GDR — Global Depository Receipts.
	See Notes to Financial Statements.

40

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman International Growth Portfolio (continued)

	Shares		Value
Hong Kong 4.9%
China Merchants Holdings International
(Capital Goods)		32,000	$	42,042
CNOOC (Energy)		31,500		61,874
Techtronic Industries (Consumer Durables
and Apparel)		24,000		66,463
				170,379
Ireland 1.4%
Elan (ADR)* (Health Care)		2,100		14,469
Ryanair Holdings (ADR)* (Transportation)		700		35,389
				49,858
Israel 0.8%
Teva Pharmaceutical Industries (ADR)
(Health Care)		500		28,352
Japan 6.9%
Dentsu (Media)		7		35,283
Fast Retailing (Retailing)		500		30,382
Ito-Yokado (Consumer Staples)		500		15,728
Japan Tobacco (Consumer Staples)		4		29,309
KDDI (Telecommunication Services)		6		34,387
Matsushita Electric Industrial (Consumer
Durables and Apparel)		3,000		41,499
Shin-Etsu Chemical (Chemicals)		700		28,618
Sumitomo Electric Industries (Capital Goods)		3,000		26,826
				242,032
Netherlands 4.1%
ASML Holding* (Semiconductors and
Semiconductor Equipment)		2,677		53,660
European Aeronautic Defence and Space
(Capital Goods)		3,064		72,770
Koninklijke Numico* (Consumer Staples)		600		16,563
				142,993
Russia 2.3%
MMC Norilsk Nickel (ADR)
(Metals and Mining)		1,200		79,800
South Africa 1.0%
Telkom Group (Telecommunication Services)		3,200		33,219
South Korea 2.1%
Kia Motors (Automobiles and Components)		4,090		37,416
Samsung Electronics (GDR)†
(Semiconductors and Semiconductor
Equipment)	200		37,600
				75,016

	Shares		Value
Sweden 4.6%
Atlas Copco (Capital Goods)		2,650	$	94,869
Telefonaktiebolaget LM Ericsson (ADR)
(Communications Equipment)		3,800		67,260
				162,129
Switzerland 7.7%
ABB* (Capital Goods)		20,570		103,239
Credit Suisse Group (Diversified Financials)		1,366		49,957
Roche Holding (Health Care)		1,132		114,133
				267,329
United Kingdom 19.5%
AstraZeneca (Health Care)		1,300		62,191
BP (ADR) (Energy)		500		24,675
British Airways* (Transportation)		11,900		49,388
Burberry Group (Consumer Durables
and Apparel)		12,393		80,856
The Carphone Warehouse Group* (Retailing)		35,800		94,260
Compass Group (Hotels, Restaurants and
Leisure)		11,300		76,650
Corus Group* (Metals and Mining)		38,000		20,350
EMI Group (Media)		17,000		48,174
Imperial Tobacco Group (Consumer Staples)		1,700		33,380
Kingfisher (Retailing)		13,347		66,353
lastminute.com* (Software and Services)		3,405		13,524
Rolls-Royce Group (Capital Goods)		10,588		33,500
Vodafone Group (Telecommunication
Services)		30,700		75,899
				679,200
Total Investments 96.6%
(Cost $2,966,870)				3,371,177
Other Assets Less Liabilities 3.4%				119,088
Net Assets 100.0%			$	3,490,265

________________

* Non-income producing security.

† Rule 144A security.

ADR - American Depository Receipts.

GDR - Global Depository Receipts.

See Notes to Financial Statements.

41

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Investment Grade Fixed Income Portfolio (continued)

	Principal
	Amount		Value
Corporate Bonds 50.2%
Automobiles and Components 3.8%
Delphi 6.50%, 8/15/2013	$	25,000	$	26,301
Ford Motor:
5.625%, 10/1/2008		90,000		92,489
7%, 10/1/2013		50,000		52,827
General Motors 8.25%, 7/15/2023		50,000		56,916
				228,533
Capital Goods 2.7%
General Electric 5%, 2/1/2013		100,000		101,317
Raytheon 4.85%, 1/15/2011		60,000		60,168
				161,485
Consumer Staples 6.8%
Anheuser-Busch 4.625%, 2/1/2015		25,000		24,448
Coca-Cola Enterprises 4.25%, 9/15/2010		15,000		15,014
Fortune Brand 2.875%, 12/1/2006		40,000		40,275
General Mills 2.625%, 10/24/2006		160,000		159,229
Kellogg 2.875%, 6/1/2008		105,000		101,487
Procter & Gamble 6.875%, 9/15/2009		60,000		69,395
				409,848
Diversified Financials 18.8%
Allstate 6.125%, 12/15/2032		15,000		15,477
American General Finance 3%, 11/15/2006		90,000		90,638
Bank of America 4.375%, 12/1/2010		55,000		55,220
Capital One Bank 4.875%, 5/15/2008		80,000		82,413
CIT Group 4.75%, 12/15/2010		55,000		55,425
Citigroup 6%, 10/31/2033		90,000		90,302
Franklin Resources 3.70%, 4/15/2008		25,000		24,889
General Electric Capital 4.25%, 12/1/2010		20,000		19,930
General Motors Acceptance 4.375%,
12/10/2007		160,000		161,790
Goldman Sachs Group 4.75%, 7/15/2013		65,000		63,467
International Lease Finance 4.375%,
11/1/2009		80,000		80,696
Marshall & Ilsley Bank 5.25%, 9/4/2012		35,000		36,761
MBNA 4.625%, 9/15/2008		35,000		35,959
Merrill Lynch:
3.70%, 4/21/2008		40,000		40,301
4.50%, 11/4/2010		55,000		55,605
MetLife 5%, 11/24/2013		55,000		54,717
Nisource Finance 3.20%, 11/1/2006		35,000		35,306
SLMA 4%, 1/15/2009		50,000		50,400
US Bank National Association 2.85%,
11/15/2006		80,000		80,442
				1,129,738

	Principal
	Amount		Value
Health Care 0.7%
UnitedHealth Group 3.30%, 1/30/2008	$	45,000	$	44,835
Media 4.0%
Cox Communicaitons 7.75%, 11/1/10		30,000		35,786
Time Warner:
9.15%, 2/1/2023		90,000		116,770
7.625%, 4/15/2031		75,000		86,856
				239,412
Real Estate 2.9%
Centex 5.125%, 10/1/2013		50,000		49,393
Pulte Homes 6.375%, 5/15/2033		45,000		43,946
Rouse 5.375%, 11/26/2013		35,000		34,883
Simon Property Group 6.35%, 8/28/2012		45,000		48,982
				177,204
Retailing 0.8%
Safeway 4.125%, 11/1/2008		50,000		49,835
Telecommunication Services 8.6%
AT&T 8.75%, 11/15/2031†		75,000		87,945
AT&T Broadband 9.455%, 11/15/2022		25,000		33,965
AT&T Wireless 8.75%, 3/1/2031		35,000		43,337
Bellsouth Telecommunications 5.875%,
1/15/2009		60,000		65,660
Sprint Capital:
7.125%, 1/30/2006		155,000		167,787
8.375%, 3/15/2012		50,000		58,508
Verizon Wireless 5.375%, 12/15/2006		55,000		58,739
				515,941
Utilities 1.1%
Consolidated Edison 5.875%, 4/1/2033		10,000		10,168
Dominion Resources 6.75%, 12/15/2032		30,000		32,197
Duke Energy 5.30%, 10/1/2015		25,000		25,385
				67,750
Total Corporate Bonds
(Cost $2,986,559)				3,024,581
Government Agency Securities 32.5%
Mortgage-Backed Securities†† 32.5%
FHLMC GOLD:
4.50%, 11/1/2007		178,540		182,612
6%, 11/1/2010		13,184		13,806
5.50%, 6/1/2018		51,903		53,864
8%, 12/1/2023		8,302		9,071
5.50%, 4/1/2029		100,839		102,500

_____________

†	Rule 144A security.
††	Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of theunderlying instruments, the average life may be less than the original maturity. This, in turn, may impact the ultimate yield realized from these investments.

See Notes to Financial Statements.

42

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Investment Grade Fixed Income Portfolio (continued)

	Principal
	Amount
	or Shares		Value
Mortgage-Backed Securities†† (continued)
FHLMC GOLD (continued):
6.50%, 7/1/2032	$	276,300	$	289,514
6%, 12/1/2032		213,792		221,087
6%, 3/1/2033		230,000		237,849
5%, 8/1/2033		49,097		48,503
FNMA:
7%, 7/1/2008		32,859		35,158
7%, 2/1/2012		14,326		15,329
8.50%, 9/1/2015		9,538		10,451
6.50%, 5/1/2017		85,820		91,106
5.50%, 2/1/2018		84,629		87,826
6%, 3/1/2018		30,272		31,798
7%, 1/1/2032		44,606		47,243
7%, 5/1/2032		122,406		129,642
6.50%, 7/1/2032		101,532		106,233
6%, 3/1/2033		132,520		137,088
5.50%, 8/1/2033		106,151		107,620
Total Government Agency Securities
(Cost $1,954,881)				1,958,300

	Principal
	Amount
	or Shares		Value
Asset-Backed Securities†† 3.0%
Aerospace and Defense 3.0%
Peco Energy Transition Trust 6.05%,
3/1/2009	$	100,000	$	108,406
PP&L Transition 6.83%, 3/25/2007		69,570		72,101
Total Asset-Backed Securities
(Cost $169,489)				180,507
Repurchase Agreement 13.3%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$800,032, collateralized by:
$755,000 US Treasury Notes
5%, 2/15/2011, with a fair
market value of $824,838
(Cost $800,000)		800,000		800,000
Total Investments 99.0%
(Cost $5,910,929)				5,963,388
Other Assets Less Liabilities 1.0%				61,987
Net Assets 100.0%			$	6,025,375

Seligman Large-Cap Growth Portfolio

Common Stocks 94.0%
Automobiles and Components 0.5%
Harley-Davidson	250	shs.	$	11,883
Biotechnology 5.8%
Amgen*	1,200			74,160
Biogen Idec*	500			18,392
Genentech*	200			18,714
Genzyme*	300			14,807
MedImmune*	800			20,336
				146,409
Capital Goods 9.4%
3M	200			17,006
Eaton	300			32,394
General Electric	3,550			109,979
Illinois Tool Works	200			16,782
Tyco International	2,300			60,950
				237,111
Chemicals 4.3%
Dow Chemical	1,700			70,669
Praxair	1,000			38,200
				108,869

Communications Equipment 6.5%
Cisco Systems*	3,600	shs.	$	87,480
Motorola	2,400			33,768
QUALCOMM*	800			43,120
				164,368
Computers and Peripherals 4.6%
Dell*	1,100			37,345
Hewlett-Packard	600			13,782
International Business Machines	700			64,876
				116,003
Consumer Durables and Apparel 0.5%
NIKE (Class B)	200			13,692
Consumer Staples 5.1%
Coca-Cola	1,200			60,900
Procter & Gamble	100			9,988
Wal-Mart Stores	1,100			58,355
				129,243
Energy 1.1%
Schlumberger	500			27,360

_____________
*	Non-income producing security.
††	Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This, in turn, may impact the ultimate yield realized from these investments.
See Notes to Financial Statements.

43

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Large-Cap Growth Portfolio (continued)

	Shares		Value
Financials 8.1%
Allstate		1,000	$	43,020
American Express		500		24,115
American International Group		800		53,024
Citigroup		500		24,270
Goldman Sachs Group		500		49,365
Merrill Lynch		200		11,730
				205,524
Health Care Equipment and Supplies 2.6%
Boston Scientific*		400		14,704
Medtronic		800		38,888
St. Jude Medical*		200		12,270
				65,862
Health Care Providers and Services 1.4%
Cardinal Health		200		12,232
UnitedHealth Group		400		23,272
				35,504
Hotels, Restaurants and Leisure 1.7%
Carnival		600		23,838
Hilton Hotels		1,100		18,843
				42,681
Media 5.6%
Clear Channel Communications*		500		23,415
Comcast (Class A)*		500		16,427
Walt Disney		1,600		37,328
Time Warner*		2,800		50,372
Viacom (Class B)*		300		13,314
				140,856
Paper and Forest Products 1.5%
Weyerhaeuser		600		38,400
Pharmaceuticals 14.5%
Abbot Laboratories		900		41,940
Barr Laboratories*		200		15,390
Forest Laboratories*		600		37,080
Johnson & Johnson		1,200		61,992
Eli Lilly		300		21,099
Merck		300		13,860
Pfizer		3,730		131,781
Schering-Plough		1,500		26,085
Teva Pharmaceutical Industries (ADR) (Israel)		300		17,012
				366,239

		Shares or
		Principal
		Amount			Value
Retailing 5.2%
Amazon.com*		200	shs.	$	10,534
Bed Bath & Beyond*		600			26,022
eBay*		200			12,923
The Home Depot		1,000			35,490
Target		1,200			46,080
					131,049
Semiconductors and Semiconductor
Equipment 4.9%
Applied Materials		600			13,467
Intel		2,500			80,137
Texas Instruments		1,000			29,380
					122,984
Software and Services 9.5%
Accenture (Class A)* (Bermuda)		1,200			31,584
Computer Associates International		500			13,670
Fiserv*		500			19,815
Microsoft*		3,600			99,054
Oracle*		2,800			36,974
SAP (ADR) (Germany)		700			29,092
Yahoo!*		200			9,035
					239,224
Transportation 1.2%
United Parcel Service (Class B)		400			29,820
Total Common Stocks
(Cost $2,234,723)					2,373,081
Repurchase Agreement 4.0%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$100,004, collateralized by:
$100,000 US Treasury Notes
4.875%, 2/15/2012, with a fair
market value of $107,625
(Cost $100,000)	$	100,000			100,000
Total Investments 98.0%
(Cost $2,334,723)					2,473,081
Other Assets Less Liabilities 2.0%					51,572
Net Assets 100.0%				$	2,524,653

Seligman Large-Cap Value Portfolio

Common Stocks 97.7%
Aerospace and Defense 5.9%
Honeywell International	4,000	$	133,720
United Technologies	2,000		189,540
			323,260

Automobiles and Components 2.9%
Ford Motor	10,000	shs.	$	160,000
Banks 9.8%
Fannie Mae	2,300			172,638

_____________

* Non-income producing security.

ADR —American Depository Receipts.

See Notes to Financial Statements.

44

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Large-Cap Value Portfolio (continued)

	Shares		Value
Banks (continued)
FleetBoston Financial	5,040	$	219,996
Washington Mutual	3,500		140,420
			533,054
Chemicals 7.8%
Dow Chemical	5,500		228,635
Praxair	5,200		198,640
			427,275
Communications Equipment 3.4%
Cisco Systems*	7,700		187,110
Computers and Peripherals 3.9%
International Business Machines	2,300		213,164
Diversified Financials 10.2%
The Bank of New York	6,500		215,280
Citigroup	3,600		174,744
J.P. Morgan Chase	4,500		165,285
			555,309
Energy 5.9%
ChevronTexaco	1,810		156,366
Transocean	3,510		162,653
			319,019
Food and Staple Retailing 2.7%
Costco Wholesale*	4,000		148,840
Health Care Equipment and Supplies 4.9%
Baxter International	4,000		122,080
Medtronic	3,000		145,830
			267,910
Household Products 1.8%
Kimberly-Clark	1,700		100,453
Industrial Conglomerates 2.3%
General Electric	4,000		123,920
Insurance 8.5%
Allstate	4,000		172,080
St. Paul Companies	4,200		166,530
UNUMProvident	7,800		123,006
			461,616

	Shares or
	Principal
	Amount			Value
Paper and Forest Products 7.1%
Georgia-Pacific		7,000	shs.	$	214,690
International Paper		4,000			172,440
					387,130
Pharmaceuticals 6.3%
Pfizer		5,000			176,650
Wyeth		3,900			165,555
					342,205
Retailing 5.5%
J.C. Penney		8,000			210,240
Sears, Roebuck		2,000			90,980
					301,220
Tobacco 4.0%
Altria Group		4,000			217,680
Transportation 1.3%
CSX		2,000			71,880
Utilities 3.5%
AES		20,000			188,800
Total Common Stocks
(Cost $4,766,206)					5,329,845
Repurchase Agreement 1.8%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$100,004, collateralized by:
$100,000 US Treasury Notes
4.875%, 2/15/2012, with a fair
market value of $107,625
(Cost $100,000)	$	100,000			100,000
Total Investments 99.5%
(Cost $4,866,206)					5,429,845
Other Assets Less Liabilities 0.5%					25,823
Net Assets 100.0%				$	5,455,668

Seligman Small-Cap Value Portfolio

Common Stocks 105.4%
Aerospace and Defense 1.8%
Cubic	185,000	$	4,255,000
Chemicals 13.0%
Cabot	160,000		5,094,400
Crompton	630,000		4,517,100
Lyondell Chemical	320,000		5,424,000

Chemicals (continued)
Minerals Technologies	80,000	shs.	$	4,740,000
NOVA Chemicals (Canada)	210,000			5,659,500
Olin	250,000			5,015,000
				30,450,000

_____________

* Non-income producing security.

See Notes to Financial Statements.

45

Seligman Portfolios, Inc.

Portfolios of Investments

December 31, 2003

Seligman Small-Cap Value Portfolio (continued)

	Shares		Value
Commercial Services and Supplies 8.0%
Brink’s		246,272	$	5,568,210
Korn/Ferry International		480,000		6,403,200
Sotheby’s Holdings (Class A)*		500,000		6,830,000
				18,801,410
Consumer Staples 6.2%
American Italian Pasta*		125,000		5,237,500
Bunge		150,000		4,938,000
Constellation Brands (Class B)*		130,000		4,280,900
				14,456,400
Containers and Packaging 2.5%
Smurfit-Stone Container*		320,000		5,937,600
Energy 3.5%
Hanover Compressor*		330,000		3,679,500
Universal Compression Holdings*		174,100		4,554,456
				8,233,956
Financials 7.7%
W.R. Berkley		140,000		4,893,000
Commercial Federal		170,000		4,540,700
Montpelier Re Holdings*		120,000		4,404,000
The PMI Group		110,000		4,095,300
				17,933,000
Health Care Equipment
and Supplies 2.0%
Edwards Lifesciences*		155,000		4,662,400
Health Care Providers
and Services 9.3%
Andrx*		260,000		6,251,700
Apria Healthcare Group*		150,000		4,270,500
Oxford Health Plans*		110,000		4,785,000
Select Medical*		400,000		6,512,000
				21,819,200
Household Durables 5.2%
Furniture Brands International*		190,000		5,572,700
Harman International Industries		90,000		6,658,200
				12,230,900
Machinery 6.1%
Mueller Industries*		150,000		5,154,000
Navistar International		100,000		4,789,000
Stewart & Stevenson Services		310,000		4,355,500
				14,298,500
Media 1.9%
Cadmus Communications		363,450		4,561,298
Metals and Mining 2.3%
Peabody Energy		130,000		5,422,300

	Shares or
	Principal
	Amount		Value
Paper and Forest Products 2.3%
Bowater		115,000 shs.$		5,325,650
Pharmaceuticals and Biotechnology 9.0%
Enzon*		380,000		4,548,600
Eon Labs*		100,000		5,094,000
Pharmacopeia*		360,000		5,135,400
Protein Design Labs*		350,000		6,300,000
				21,078,000
Retailing 9.5%
American Eagle Outfitters*		300,000		4,921,500
Fred’s		140,000		4,336,500
Urban Outfitters*		220,000		8,149,900
The Wet Seal (Class A)*		500,000		4,950,000
				22,357,900
Semiconductors and
Semiconductor Equipment 5.6%
Agere Systems (Class A)*		2,800,000		8,540,000
Skyworks Solutions		516,000		4,484,040
				13,024,040
Software and Services 1.7%
Mentor Graphics		280,000		4,074,000
Technology Hardware and Equipment 4.7%
Extreme Networks*		600,000		4,332,000
Trimble Navigation*		180,000		6,681,600
				11,013,600
Transportation 3.1%
Continental Airlines*		230,000		3,742,100
J.B. Hunt Transport Services*		130,000		3,510,650
				7,252,750
Total Common Stocks
(Cost $192,100,250)				247,187,904
Repurchase Agreement 1.3%
State Street Bank & Trust, 0.72%,
dated 12/31/2003, maturing
1/2/2004, in the amount of
$3,100,124, collateralized by:
$2,970,000 US Treasury Notes
4.875%, 2/15/2012, with a fair
market value of $3,196,463
(Cost $3,100,000)	$	3,100,000		3,100,000
Total Investments 106.7%
(Cost $195,200,250)				250,287,904
Other Assets Less Liabilities (6.7)%				(15,784,946	)
Net Assets 100.0%			$	234,502,958

________________

* Non-income producing security.

See Notes to Financial Statements.

 46

Seligman Portfolios, Inc.

Statements of Assets and Liabilities

December 31, 2003

		Seligman Capital Portfolio			Seligman Cash Management Portfolio		Seligman Common Stock Portfolio			Seligman Communications and Information Portfolio			Seligman Frontier Portfolio
Assets:
Investments, at value* (see portfolios of investments):
Long-term holdings	$	16,193,143		$	—	$	12,044,016		$	73,206,195		$	7,424,284
Repurchase agreements		600,000			950,000		250,000			600,000			100,000
Other short-term holdings		—			3,193,468		—			—			—
Total Investments		16,793,143			4,143,468		12,294,016			73,806,195			7,524,284
Cash**		28,474			41,135		18,127			315,874			43,484
Receivable for securities sold		79,645			—		—			545,471			22,097
Dividends and interest receivable		3,661			19		9,572			19,793			629
Receivable for Capital Stock sold		2,122			—		—			12,604			—
Receivable from associated companies		130			87		115			393			90
Other		488			4,717		393			2,216			231
Total Assets		16,907,663			4,189,426		12,322,223			74,702,546			7,590,815
Liabilities:
Payable for securities purchased		25,025			—		—			310,536			59,157
Management fee payable		5,560			1,451		4,093			46,578			4,721
Distribution and service fees payable		2,523			—		—			6,835			—
Payable for Capital Stock redeemed		1,016			136,365		68			79,701			64
Accrued expenses and other		34,712			17,865		21,229			76,219			24,155
Total Liabilities		68,836			155,681		25,390			519,869			88,097
Net Assets	$	16,838,827		$	4,033,745	$	12,296,833		$	74,182,677		$	7,502,718
Composition of Net Assets:
Capital Stock, $0.001 at par	$	1,496		$	4,036	$	1,265		$	6,391		$	559
Additional paid-in capital		28,185,360			4,029,709		15,586,147			118,262,650			7,832,830
Undistributed/accumulated net investment income (loss)		(4,906	)		—		103,128			(4,529	)		(3,800	)
Accumulated net realized loss		(13,966,694	)		—		(4,669,779	)		(50,668,139	)		(1,888,705	)
Net unrealized appreciation of investments		2,623,571			—		1,276,072			6,586,304			1,561,834
Net Assets	$	16,838,827		$	4,033,745	$	12,296,833		$	74,182,677		$	7,502,718
Class 1	$	12,485,709		$	4,033,745	$	12,296,833		$	62,902,578		$	7,502,718
Class 2		4,353,118							$	11,280,099
Shares of Capital Stock Outstanding:
Class 1		1,107,048			4,036,059		1,264,672			5,411,388			558,770
Class 2		388,815								980,049
Net Asset Value per Share:
Class 1	$	11.28		$	1.00	$	9.72		$	11.62		$	13.43
Class 2	$	11.20							$	11.51
_____________
* Cost of investments are as follows:	$	14,169,572		$	4,143,468	$	11,017,944		$	67,218,016		$	5,962,450
** Includes foreign currencies as follows:		—			—		—		$	287,606			—
See Notes to Financial Statements.

 47

Seligman Portfolios, Inc.

Statements of Assets and Liabilities

December 31, 2003

		Seligman Global Growth Portfolio			Seligman Global Smaller Companies Portfolio			Seligman Global Technology Portfolio			Seligman High-Yield Bond Portfolio			Seligman Income and Growth Portfolio
Assets:
Investments, at value* (see portfolios of investments):
Long-term holdings	$	2,750,148		$	6,514,639		$	11,890,578		$	7,361,433		$	2,822,871
Options purchased, at value* (see portfolios of investments)		—			—			6,480			—			—
Repurchase agreements		—			—			—			200,000			—
Total Investments		2,750,148			6,514,639			11,897,058			7,561,433			2,822,871
Cash**		132,756			37,577			813,075			26,121			52,069
Receivable for securities sold		54			84,202			34,881			—			—
Interest and dividends receivable		5,799			6,279			3,012			153,048			12,194
Receivable from the Manager (Note 5)		7,728			9,039			14,162			—			2,209
Unrealized appreciation on forward currency contracts		5			52			371			—			—
Receivable from associated companies		67			84			—			1,308			70
Other		85			193			478			265			109
Total Assets		2,896,642			6,652,065			12,763,037			7,742,175			2,889,522
Liabilities:
Payable for securities purchased		7,418			18,610			180,936			—			—
Management fee payable		2,365			5,453			10,516			3,253			971
Distribution and service fees payable		—			—			946			—			—
Payable for Capital Stock redeemed		66			36			15,369			32			—
Unrealized depreciation on forward currency contracts		—			9,606			182			—			—
Accrued expenses and other		17,639			31,135			37,799			18,484			17,990
Total Liabilities		27,488			64,840			245,748			21,769			18,961
Net Assets	$	2,869,154		$	6,587,225		$	12,517,289		$	7,720,406		$	2,870,561
Composition of Net Assets:
Capital Stock, $0.001 at par	$	723		$	599		$	1,039		$	1,450		$	332
Additional paid-in capital		4,563,097			7,558,524			25,563,780			20,153,955			3,310,635
Undistributed/accumulated net investment income (loss)		7,559			14,840			(3,402	)		613,507			48,080
Accumulated net realized loss		(2,019,871	)		(1,525,969	)		(14,572,437	)		(13,553,687	)		(739,590	)
Net unrealized appreciation of investments		219,032			358,035			1,275,758			505,181			251,104
Net unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		98,614			181,196			252,551			—			—
Net Assets	$	2,869,154		$	6,587,225		$	12,517,289		$	7,720,406		$	2,870,561
Class 1	$	2,869,154		$	6,587,225		$	10,046,985		$	7,720,406		$	2,870,561
Class 2							$	2,470,304
Shares of Capital Stock Outstanding:
Class 1		723,441			599,230			833,167			1,450,184			331,821
Class 2								205,859
Net Asset Value per Share:
Class 1	$	3.97		$	10.99		$	12.06		$	5.32		$	8.65
Class 2							$	12.00
_____________
* Cost of investments are as follows:	$	2,433,082		$	5,966,266		$	10,368,449		$	7,056,252		$	2,571,767
** Includes foreign currencies as follows:		—		$	13,794		$	247,733			—			—
See Notes to Financial Statements.

 48

Seligman Portfolios, Inc.

Statements of Assets and Liabilities

December 31, 2003

		Seligman International Growth Portfolio			Seligman Investment Grade Fixed Income Portfolio		Seligman Large-Cap Growth Portfolio			Seligman Large-Cap Value Portfolio			Seligman Small-Cap Value Portfolio
Assets:
Investments, at value* (see portfolios of investments):
Long-term holdings	$	3,371,177		$	5,163,388	$	2,373,081		$	5,329,845		$	247,187,904
Repurchase agreements		—			800,000		100,000			100,000			3,100,000
Total Investments		3,371,177			5,963,388		2,473,081			5,429,845			250,287,904
Cash**		146,039			35,915		47,956			27,829			36,659
Receivable for securities sold		—			—		12,336			—			—
Interest and dividends receivable		9,496			47,969		2,654			12,862			99,037
Receivable for Capital Stock sold		—			—		—			—			610,139
Receivable from the Manager (Note 5)		5,944			166		—			—			—
Unrealized appreciation on forward currency contracts		367			—		—			—			—
Receivable from associated companies		70			100		64			78			862
Other		106			299		72			155			4,739
Total Assets		3,533,199			6,047,837		2,536,163			5,470,769			251,039,340
Liabilities:
Payable for securities purchased		20,058			—		—			—			—
Management fee payable		2,898			2,587		1,453			3,551			204,015
Distribution and service fees payable		—			—		—			—			8,269
Payable for Capital Stock redeemed		—			65		—			—			16,200,751
Unrealized depreciation on forward currency contracts		14			—		—			—			—
Accrued expenses and other		19,964			19,810		10,057			11,550			123,347
Total Liabilities		42,934			22,462		11,510			15,101			16,536,382
Net Assets	$	3,490,265		$	6,025,375	$	2,524,653		$	5,455,668		$	234,502,958
Composition of Net Assets:
Capital Stock, $0.001 at par	$	389		$	555	$	401		$	588		$	14,483
Additional paid-in capital		6,038,441			5,378,992		5,293,767			6,424,069			179,283,179
Undistributed/accumulated net investment income (loss)		12,141			289,730		(1,790	)		59,323			(2,641	)
Undistributed/accumulated net realized gain (loss)		(2,966,328	)		303,639		(2,906,083	)		(1,591,951	)		120,283
Net unrealized appreciation of investments		219,410			52,459		138,358			563,639			55,087,654
Net unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		186,212			—		—			—			—
Net Assets	$	3,490,265		$	6,025,375	$	2,524,653		$	5,455,668		$	234,502,958
Class 1	$	3,490,265		$	6,025,375	$	2,524,653		$	5,455,668		$	214,525,365
Class 2												$	19,977,593
Shares of Capital Stock Outstanding:
Class 1		389,038			555,336		400,559			588,362			13,244,928
Class 2													1,238,287
Net Asset Value per Share:
Class 1	$	8.97		$	10.85	$	6.30		$	9.27		$	16.20
Class 2												$	16.13
_____________
*  Cost of investments are as follows:	$	2,966,870		$	5,910,929	$	2,334,723		$	4,866,206		$	195,200,250
** Includes foreign currencies as follows:	$	11			—		—			—			—
See Notes to Financial Statements.

 49

Seligman Portfolios, Inc.

Statements of Operations

For the Year Ended December 31, 2003

		Seligman Capital Portfolio			Seligman Cash Management Portfolio			Seligman Common Stock Portfolio		Seligman Communications and Information Portfolio			Seligman Frontier Portfolio
Investment Income:
Dividends*	$	67,317		$	—		$	192,685	$	126,697		$	19,588
Interest		4,449			67,387			1,744		25,642			532
Total Investment Income		71,766			67,387			194,429		152,339			20,120
Expenses:
Management fees		58,817			24,635			47,171		491,247			51,955
Shareholder account services		26,012			—			—		40,945			—
Custody and related services		15,922			2,922			11,787		35,315			35,625
Auditing fees		14,651			9,935			13,095		44,946			10,152
Distribution and service fees — Class 2		8,529			—			—		22,594			—
Directors’ fees and expenses		6,552			5,376			6,506		7,714			6,156
Shareholder reports and communications		5,892			850			—		6,029			4,905
Shareholders’ meeting		5,117			3,657			4,729		15,256			3,501
Registration		4,052			188			585		7,985			3,684
Legal fees		815			521			704		5,027			578
Miscellaneous		2,824			2,732			1,920		7,431			1,753
Total Expenses Before Reimbursement		149,183			50,816			86,497		684,489			118,309
Reimbursement of expenses (Note 5)		(19,733	)		(7,693	)		—		—			(1,628	)
Total Expenses After Reimbursement		129,450			43,123			86,497		684,489			116,681
Net Investment Income (Loss)		(57,684	)		24,264			107,932		(532,150	)		(96,561	)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized gain (loss) on investments and foreign currency transactions		2,526,116			12			158,900		(3,024,939	)		320,925
Net change in unrealized appreciation/ depreciation of investments		2,070,339			—			2,390,364		27,327,664			2,037,620
Net Gain on Investments and Foreign Currency Transactions		4,596,455			12			2,549,264		24,302,725			2,358,545
Increase in Net Assets From Operations	$	4,538,771		$	24,276		$	2,657,196	$	23,770,575		$	2,261,984
_____________
* Net of foreign tax withheld as follows:	$	118			—		$	1,183	$	1,584		$	73
See Notes to Financial Statements.

 50

Seligman Portfolios, Inc.

Statements of Operations

For the Year Ended December 31, 2003

		Seligman Global Growth Portfolio			Seligman Global Smaller Companies Portfolio			Seligman Global Technology Portfolio			Seligman High-Yield Bond Portfolio			Seligman Income and Growth Portfolio
Investment Income:
Dividends*	$	51,219		$	85,414		$	52,182		$	9,322		$	28,314
Interest		—			1,656			1,360			687,575			56,063
Total Investment Income		51,219			87,070			53,542			696,897			84,377
Expenses:
Management fees		25,234			58,169			113,764			38,144			12,385
Shareholder account services		—			—			26,969			—			—
Custody and related services		50,931			152,169			83,234			25,027			29,764
Auditing fees		8,039			11,515			18,253			10,633			7,948
Distribution and service fees — Class 2		—			—			3,024			—			—
Directors’ fees and expenses		6,129			6,573			6,185			6,141			6,245
Shareholder reports and communications		49			134			5,983			213			24
Shareholders’ meeting		3,594			5,623			4,390			3,763			2,718
Registration		676			1,001			9,548			487			673
Legal fees		641			905			1,353			1,168			740
Miscellaneous		1,265			1,188			2,266			1,862			880
Total Expenses Before Reimbursement		96,558			237,277			274,969			87,438			61,377
Reimbursement of expenses (Note 5)		(57,588	)		(140,830	)		(89,270	)		(8,543	)		(29,640	)
Total Expenses After Reimbursement		38,970			96,447			185,699			78,895			31,737
Net Investment Income (Loss)		12,249			(9,377	)		(132,157	)		618,002			52,640
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized gain (loss) on investments**		(91,388	)		437,205			(520,525	)		631,402			80,038
Net realized gain from foreign currency transactions		208,321			396,450			366,397			—			—
Net change in unrealized appreciation/depreciation of investments		559,647			1,240,748			3,839,607			372,723			335,955
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		(32,111	)		(50,883	)		8,563			—			—
Net Gain on Investments and Foreign Currency Transactions		644,469			2,023,520			3,694,042			1,004,125			415,993
Increase in Net Assets From Operations	$	656,718		$	2,014,143		$	3,561,885		$	1,622,127		$	468,633
_____________
*  Net of foreign tax withheld as follows:	$	3,840		$	6,062		$	7,185			—		$	189
** Net of/including foreign capital gains tax as follows:	$	1,774		$	21,481		$	4,534			—			—
See Notes to Financial Statements.

 51

Seligman Portfolios, Inc.

Statements of Operations

For the Year Ended December 31, 2003

		Seligman International Growth Portfolio			Seligman Investment Grade Fixed Income Portfolio			Seligman Large-Cap Growth Portfolio			Seligman Large-Cap Value Portfolio			Seligman Small-Cap Value Portfolio
Investment Income:
Dividends*	$	72,447		$	—		$	21,885		$	115,699		$	1,184,948
Interest		139			340,914			488			182			14,886
Total Investment Income		72,586			340,914			22,373			115,881			1,199,834
Expenses:
Management fees		31,442			34,762			14,671			36,847			1,617,110
Shareholder account services		—			—			—			—			38,292
Custody and related services		55,590			18,837			3,969			1,972			46,647
Auditing fees		8,409			11,382			7,297			8,770			95,317
Distribution and service fees — Class 2		—			—			—			—			23,613
Directors’ fees and expenses		6,453			6,381			5,630			5,788			9,719
Shareholder reports and communications		—			434			105			354			7,340
Shareholders’ meeting		3,958			4,158			2,416			2,980			28,426
Registration		504			805			530			537			14,605
Legal fees		686			627			421			411			5,880
Miscellaneous		1,298			1,676			1,320			1,573			11,067
Total Expenses Before Reimbursement		108,340			79,062			36,359			59,232			1,898,016
Reimbursement of expenses (Note 5)		(56,665	)		(5,213	)		(9,243	)		(5,055	)		—
Total Expenses After Reimbursement		51,675			73,849			27,116			54,177			1,898,016
Net Investment Income (Loss)		20,911			267,065			(4,743	)		61,704			(698,182	)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized gain (loss) on investments**		7,968			437,101			(31,852	)		(709,138	)		1,055,638
Net realized gain from foreign currency transactions		385,990			—			—			—			—
Net change in unrealized appreciation/depreciation of investments		532,044			(263,962	)		597,045			1,985,907			67,969,249
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		(48,891	)		—			—			—			—
Net Gain on Investments and Foreign
Currency Transactions		877,111			173,139			565,193			1,276,769			69,024,887
Increase in Net Assets From Operations	$	898,022		$	440,204		$	560,450		$	1,338,473		$	68,326,705
_____________
* Net of foreign tax withheld as follows:	$	8,507			—		$	64			—		$	7,496
** Net of foreign capital gains tax as follows:	$	4,600			—			—			—			—
See Notes to Financial Statements.

 52

Seligman Portfolios, Inc.

Statements of Changes in Net Assets

	Seligman Capital Portfolio						Seligman Cash Management Portfolio						Seligman Common Stock Portfolio
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002			2003			2002
Operations:
Net investment income (loss)	$	(57,684	)	$	(102,960	)	$	24,264		$	92,373		$	107,932		$	162,686
Net realized gain (loss) on investments		2,526,116			(6,963,490	)		12			—			158,900			(2,992,585	)
Net change in unrealized appreciation/ depreciation of investments		2,070,339			(1,896,671	)		—			—			2,390,364			(2,999,136	)
Increase (Decrease) in Net Assets From Operations		4,538,771			(8,963,121	)		24,276			92,373			2,657,196			(5,829,035	)
Distributions to Shareholders:
Net investment income — Class 1*		—			—			(24,264	)		(92,373	)		(160,989	)		(162,643	)
Net realized short-term gain n investments — Class 1*		—			—			(12	)		(2,266	)		—			—
Decrease in Net Assets From Distributions		—			—			(24,276	)		(94,639	)		(160,989	)		(162,643	)
Capital Share Transactions:
Proceeds from sale of shares:
Class 1		552,547			885,131			4,805,482			10,885,722			2,569,547			3,534,348
Class 2		887,457			1,444,804			—			—			—			—
Value of shares issued in payment of:
Dividends — Class 1		—			—			24,264			92,373			160,989			162,643
Gain distributions — Class 1		—			—			12			2,266			—			—
Total		1,440,004			2,329,935			4,829,758			10,980,361			2,730,536			3,696,991
Cost of shares redeemed:
Class 1		(3,348,021	)		(5,885,787	)		(8,665,691	)		(15,319,579	)		(5,860,627	)		(8,530,462	)
Class 2		(516,029	)		(898,718	)		—			—			—			—
Total		(3,864,050	)		(6,784,505	)		(8,665,691	)		(15,319,579	)		(5,860,627	)		(8,530,462	)
Decrease in Net Assets From Capital Share Transactions		(2,424,046	)		(4,454,570	)		(3,835,933	)		(4,339,218	)		(3,130,091	)		(4,833,471	)
Increase (Decrease) in Net Assets		2,114,725			(13,417,691	)		(3,835,933	)		(4,341,484	)		(633,884	)		(10,825,149	)
Net Assets:
Beginning of year		14,724,102			28,141,793			7,869,678			12,211,162			12,930,717			23,755,866
End of Year**	$	16,838,827		$	14,724,102		$	4,033,745		$	7,869,678		$	12,296,833		$	12,930,717
_____________
*       For tax purposes, these distributions are considered ordinary income.
**     Including undistributed net investment income/(net of accumulated net investment loss) as follows:	$	(4,906	)	$	(4,233	)		—			—		$	103,128		$	156,185
See Notes to Financial Statements.

 53

Seligman Portfolios, Inc.

Statements of Changes in Net Assets

	Seligman Communications and Information Portfolio						Seligman Frontier Portfolio						Seligman Global Growth Portfolio
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002			2003			2002
Operations:
Net investment income (loss)	$	(532,150	)	$	(706,615	)	$	(96,561	)	$	(93,053	)	$	12,249		$	4,789
Net realized gain (loss) on investments		(3,024,939	)		(21,485,266	)		320,925			(1,726,157	)		(91,388	)		(870,935	)
Net realized gain from foreign currency transactions		—			—			—			—			208,321			57,563
Net change in unrealized appreciation/ depreciation of investments		27,327,664			(23,476,034	)		2,037,620			(1,374,859	)		559,647			(398,010	)
Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		—			—			—			—			(32,111	)		170,385
Increase (Decrease) in Net Assets From Operations		23,770,575			(45,667,915	)		2,261,984			(3,194,069	)		656,718			(1,036,208	)
Capital Share Transactions:
Proceeds from sale of shares:
Class 1		3,519,194			8,745,627			2,046,225			3,047,504			1,011,244			1,564,958
Class 2		3,083,097			13,752,873			—			—			—			—
Total		6,602,291			22,498,500			2,046,225			3,047,504			1,011,244			1,564,958
Cost of shares redeemed:
Class 1		(14,902,762	)		(29,204,127	)		(3,894,408	)		(5,938,338	)		(1,432,321	)		(2,554,205	)
Class 2		(2,600,381	)		(16,273,901	)		—			—			—			—
Total		(17,503,143	)		(45,478,028	)		(3,894,408	)		(5,938,338	)		(1,432,321	)		(2,554,205	)
Decrease in Net Assets From Capital Share Transactions		(10,900,852	)		(22,979,528	)		(1,848,183	)		(2,890,834	)		(421,077	)		(989,247	)
Increase (Decrease) in Net Assets		12,869,723			(68,647,443	)		413,801			(6,084,903	)		235,641			(2,025,455	)
Net Assets:
Beginning of year		61,312,954			129,960,397			7,088,917			13,173,820			2,633,513			4,658,968
End of Year**	$	74,182,677		$	61,312,954		$	7,502,718		$	7,088,917		$	2,869,154		$	2,633,513
_____________
** Including undistributed net investment income/(net of accumulated net investment loss) as follows:	$	(4,529	)	$	(3,709	)	$	(3,800	)	$	(3,126	)	$	7,559		$	(2,702	)
See Notes to Financial Statements.

 54

Seligman Portfolios, Inc.

Statements of Changes in Net Assets

	Seligman Global Smaller Companies Portfolio						Seligman Global Technology Portfolio						Seligman High-Yield Bond Portfolio
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002			2003			2002
Operations:
Net investment income (loss)	$	(9,377	)	$	(49,120	)	$	(132,157	)	$	(172,982	)	$	618,002		$	911,221
Net realized gain (loss) on investments		437,205			(1,587,547	)		(520,525	)		(5,104,672	)		631,402			(2,687,333	)
Net realized gain (loss) from foreign currency transactions		396,450			(32,280	)		366,397			124,499			—			—
Net change in unrealized appreciation/ depreciation of investments		1,240,748			(1,071,609	)		3,839,607			(1,960,769	)		372,723			1,256,211
Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		(50,883	)		486,186			8,563			377,947			—			—
Increase (Decrease) in Net Assets From Operations		2,014,143			(2,254,370	)		3,561,885			(6,735,977	)		1,622,127			(519,901	)
Distributions to Shareholders:
Net investment income — Class 1		—			—			—			—			(910,725	)		(1,401,014	)
Decrease in Net Assets From Distributions		—			—			—			—			(910,725	)		(1,401,014	)
Capital Share Transactions:
Proceeds from sale of shares:
Class 1		2,015,563			3,476,932			111,955			3,577,246			4,138,732			5,211,833
Class 2		—			—			9,613,546			8,528,574			—			—
Value of shares issued in payment of:
Dividends — Class 1		—			—			—			—			910,725			1,401,014
Total		2,015,563			3,476,932			9,725,501			12,105,820			5,049,457			6,612,847
Cost of shares redeemed:
Class 1		(3,357,538	)		(5,324,941	)		(2,319,689	)		(6,961,115	)		(6,171,857	)		(9,070,122	)
Class 2		—			—			(9,409,491	)		(9,201,732	)		—			—
Total		(3,357,538	)		(5,324,941	)		(11,729,180	)		(16,162,847	)		(6,171,857	)		(9,070,122	)
Decrease in Net Assets From Capital Share Transactions		(1,341,975	)		(1,848,009	)		(2,003,679	)		(4,057,027	)		(1,122,400	)		(2,457,275	)
Increase (Decrease) in Net Assets		672,168			(4,102,379	)		1,558,206			(10,793,004	)		(410,998	)		(4,378,190	)
Net Assets:
Beginning of year		5,915,057			10,017,436			10,959,083			21,752,087			8,131,404			12,509,594
End of Year**	$	6,587,225		$	5,915,057		$	12,517,289		$	10,959,083		$	7,720,406		$	8,131,404
_____________
** Including undistributed net investment income/(net of accumulated net investment loss) as follows:	$	14,840		$	(3,211	)	$	(3,402	)	$	(2,750	)	$	613,507		$	907,315
See Notes to Financial Statements.

 55

Seligman Portfolios, Inc.

Statements of Changes in Net Assets

	Seligman Income and Growth Portfolio						Seligman International Growth Portfolio						Seligman Investment Grade Fixed Income Portfolio
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
Operations:		2003			2002			2003			2002			2003			2002
Net investment income	$	52,640		$	74,537		$	20,911		$	19,890		$	267,065		$	313,401
Net realized gain (loss) on investments		80,038			(409,240	)		7,968			(1,024,863	)		437,101			145,230
Net realized gain from foreign currency transactions		—			—			385,990			116,696			—			—
Net change in unrealized appreciation/ depreciation of investments		335,955			(157,141	)		532,044			(158,902	)		(263,962	)		293,181
Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts		—			—			(48,891	)		305,018			—			—
Increase (Decrease) in Net Assets From Operations		468,633			(491,844	)		898,022			(742,161	)		440,204			752,712
Distributions to Shareholders:
Net investment income — Class 1		(73,431	)		(156,414	)		—			—			(311,958	)		(362,852	)
Decrease in Net Assets From Distributions		(73,431	)		(156,414	)		—			—			(311,958	)		(362,852	)
Capital Share Transactions:
Proceeds from sale of shares:
Class 1		881,516			1,640,013			1,681,676			2,364,454			2,719,078			4,916,541
Value of shares issued in payment of:
Dividends — Class 1		73,431			156,414			—			—			311,958			362,852
Total		954,947			1,796,427			1,681,676			2,364,454			3,031,036			5,279,393
Cost of shares redeemed:
Class 1		(1,766,315	)		(2,320,229	)		(2,404,051	)		(3,100,763	)		(6,200,744	)		(3,704,996	)
Total		(1,766,315	)		(2,320,229	)		(2,404,051	)		(3,100,763	)		(6,200,744	)		(3,704,996	)
Increase (Decrease) in Net Assets From Capital Share Transactions		(811,368	)		(523,802	)		(722,375	)		(736,309	)		(3,169,708	)		1,574,397
Increase (Decrease) in Net Assets		(416,166	)		(1,172,060	)		175,647			(1,478,470	)		(3,041,462	)		1,964,257
Net Assets:
Beginning of year		3,286,727			4,458,787			3,314,618			4,793,088			9,066,837			7,102,580
End of Year**	$	2,870,561		$	3,286,727		$	3,490,265		$	3,314,618		$	6,025,375		$	9,066,837
_____________
** Including undistributed net investment income/(net of accumulated net investment loss) as follows:	$	48,080		$	69,035		$	12,141		$	(3,956	)	$	289,730		$	308,342
See Notes to Financial Statements.

 56

Seligman Portfolios, Inc.

Statements of Changes in Net Assets

	Seligman Large-Cap Growth Portfolio						Seligman Large-Cap Value Portfolio						Seligman Small-Cap Value Portfolio
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002			2003			2002
Operations:
Net investment income (loss)	$	(4,743	)	$	(10,473	)	$	61,704		$	71,315		$	(698,182	)	$	(670,961	)
Net realized gain (loss) on investments		(31,852	)		(1,080,762	)		(709,138	)		(666,561	)		1,055,638			1,100,535
Net change in unrealized appreciation/ depreciation of investments		597,045			(235,167	)		1,985,907			(1,932,056	)		67,969,249			(30,469,742	)
Increase (Decrease) in Net Assets From Operations		560,450			(1,326,402	)		1,338,473			(2,527,302	)		68,326,705			(30,040,168	)
Distributions to Shareholders:
Net investment income — Class 1*		—			—			(71,842	)		(71,167	)		—			—
Net realized short-term gain on investments:*
Class 1		—			—			—			—			—			(1,234,243	)
Class 2		—			—			—			—			—			(106,327	)
Net realized long-term gain on investments:
Class 1		—			—			—			—			(1,339,959	)		(246,849	)
Class 2		—			—			—			—			(115,920	)		(21,265	)
Decrease in Net Assets From Distributions		—			—			(71,842	)		(71,167	)		(1,455,879	)		(1,608,684	)
Capital Share Transactions:
Proceeds from sale of shares:
Class 1		1,432,727			2,188,376			2,614,729			4,846,616			89,394,163			95,584,009
Class 2		—			—			—			—			11,012,914			11,559,635
Value of shares issued in payment of:
Dividends — Class 1		—			—			71,842			71,167			—			—
Gain distributions:
Class 1		—			—			—			—			1,339,959			1,481,092
Class 2		—			—			—			—			115,920			127,592
Total		1,432,727			2,188,376			2,686,571			4,917,783			101,862,956			108,752,328
Cost of shares redeemed:
Class 1		(1,406,782	)		(2,853,687	)		(3,189,991	)		(5,334,818	)		(41,802,992	)		(63,639,344	)
Class 2		—			—			—			—			(4,752,318	)		(6,408,057	)
Total		(1,406,782	)		(2,853,687	)		(3,189,991	)		(5,334,818	)		(46,555,310	)		(70,047,401	)
Increase (Decrease) in Net Assets From Capital Share Transactions		25,945			(665,311	)		(503,420	)		(417,035	)		55,307,646			38,704,927
Increase (Decrease) in Net Assets		586,395			(1,991,713	)		763,211			(3,015,504	)		122,178,472			7,056,075
Net Assets:
Beginning of year		1,938,258			3,929,971			4,692,457			7,707,961			112,324,486			105,268,411
End of Year**	$	2,524,653		$	1,938,258		$	5,455,668		$	4,692,457		$	234,502,958		$	112,324,486
_____________
*   For tax purposes, these distributions are considered ordinary income.
** Including undistributed net investment income/(net of accumulated net investment loss) as follows:	$	(1,790	)	$	(1,432	)	$	59,323		$	69,461		$	(2,641	)	$	(2,115	)
See Notes to Financial Statements.

 57

Seligman Portfolios, Inc.

Notes to Financial Statements

1.	Organization — Seligman Portfolios, Inc. (the “Fund”) is an open-end diversified management investment company consisting of 15 separate portfolios (the “Portfolios”): Seligman Capital Portfolio (“Capital Portfolio”), Seligman Cash Management Portfolio (“Cash Management Portfolio”), Seligman Common Stock Portfolio (“Common Stock Portfolio”), Seligman Communications and Information Portfolio (“Communications and Information Portfolio”), Seligman Frontier Portfolio (“Frontier Portfolio”), Seligman Global Growth Portfolio (“Global Growth Portfolio”), Seligman Global Smaller Companies Portfolio (“Global Smaller Companies Portfolio”), Seligman Global Technology Portfolio (“Global Technology Portfolio”), Seligman High-Yield Bond Portfolio (“High-Yield Bond Portfolio”), Seligman Income and Growth Portfolio, formerly Seligman Income Portfolio (“Income and Growth Portfolio”), Seligman International Growth Portfolio (“International Growth Portfolio”), Seligman Investment Grade Fixed Income Portfolio (“Investment Grade Portfolio”), Seligman Large-Cap Growth Portfolio (“Large-Cap Growth Portfolio”), Seligman Large-Cap Value Portfolio (“Large-Cap Value Portfolio”), and Seligman Small-Cap Value Portfolio (“Small-Cap Value Portfolio”), each designed to meet different investment goals. Shares of the Fund are provided as an investment medium for variable annuity and life insurance separate accounts offered by various insurance companies.
2.	Multiple Classes of Shares — The Fund offers two classes of shares. Class 1 shares do not pay a distribution and service fee (“12b-1 fee”). Class 2 shares pay an annual 12b-1 fee of up to 0.25% of average daily net assets. The two classes of shares represent interests in the same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate classspecific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
3.	Significant Accounting Policies — The financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from these estimates. The following summarizes the significant accounting policies of the Fund:
	a.	Security Valuation — Investments in US Government and Government Agency securities, bonds, asset-backed securities, convertible securities, and stocks are valued at the most current market values or, in their absence, at fair market values determined in accordance with procedures approved by the Board of Directors. Securities traded on an exchange are valued at the last sales price or, in its absence and in the case of over-the-counter securities, at the mean of closing bid and asked prices. Short-term holdings maturing in 60 days or less are valued at amortized cost. Investments held by Cash Management Portfolio are generally valued using the amortized cost method which approximates fair value. Investments of certain other funds in the Seligman Group of Investment Companies purchased to offset the Cash Management Portfolio’s liability for deferred directors’ fees are valued at current market values.
	b.	Foreign Securities — The Portfolios may invest up to 10% of their total assets in foreign securities (except Global Growth Portfolio, Global Smaller Companies Portfolio, Global Technology Portfolio, and International Growth Portfolio (together, the “Seligman International Portfolios”), which may invest up to 100% of their total assets in foreign securities). Investments in foreign securities will primarily be traded in foreign currencies, and the Portfolios may temporarily hold funds in foreign currencies. The Portfolios may also invest in US dollar-denominated American Depository Receipts (“ADR”), American Depository Shares (“ADS”), European Depository Receipts (“EDR”), Global Depository Receipts (“GDR”), and Global Depository 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, 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.
		The net asset values per share of Portfolios which invest in securities denominated in foreign currencies will be affected by changes in currency exchange rates. Changes in foreign currency exchange rates may also affect the value of dividends and interest earned, gains and losses realized on sales of securities, and net investment income and gains, if any, to be distributed to shareholders of the Portfolios. The rate of exchange between the US dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios’ books, and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of portfolio securities and other foreign currency denominated assets and liabilities at period end, resulting from changes in exchange rates. The value of cash held in foreign currencies at December 31, 2003, was substantially the same as its cost.   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 — The Seligman International Portfolios may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings, or other amounts receivable or

 58

Seligman Portfolios, Inc.

Notes to Financial Statements

		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 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. Gains or losses from options written are included in net realized and unrealized gain or loss on investments and foreign currency transactions. 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 year ended December 31, 2003, 12b-1 fees were the only class-specific expenses.
	h.	Repurchase Agreements — The Portfolios may enter into repurchase agreements with commercial banks and with broker/dealers deemed to be creditworthy by J. & W. Seligman & Co. Incorporated (the “Manager”). Securities purchased subject to repurchase agreements are deposited with the Portfolios’ custodians and, pursuant to the terms of the repurchase agreements, must have an aggregate market value greater than or equal to the repurchase price, plus accrued interest, at all times. Procedures have been established to monitor, on a daily basis, the market value of the repurchase agreements’ underlying securities to ensure the existence of the proper level of collateral.
	i.	Distributions to Shareholders — The treatment for financial reporting purposes of distributions made during the year from net investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences primarily are caused by differences in the timing of the recognition of certain components of income, expense or realized capital gain and the recharacterization of foreign exchange gains or losses to either ordinary income or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassification will have no effect on net assets, results of operations, or net asset values per share of the Portfolios.
4.	Purchases and Sales of Securities — Purchase and sales of portfolio securities, excluding options, US Government obligations and shortterm investments, for the year ended December 31, 2003, were as follows:

Portfolio		Purchases		Sales	Portfolio		Purchases		Sales
Capital	$	19,941,683	$	22,473,246	High-Yield Bond	$	13,360,781	$	14,844,602
Common Stock		14,689,053		18,142,972	Income and Growth		4,837,848		5,502,639
Communications and Information		66,635,786		72,306,434	International Growth		8,653,971		9,388,940
Frontier		7,761,872		9,685,021	Investment Grade		11,711,207		12,708,673
Global Growth		6,587,309		7,111,017	Large-Cap Growth		1,345,591		1,463,153
Global Smaller Companies		14,999,478		16,275,074	Large-Cap Value		761,737		1,448,213
Global Technology		21,206,213		23,497,575	Small-Cap Value		102,208,466		29,363,841

 59

Seligman Portfolios, Inc.

Notes to Financial Statements

For the year ended December 31, 2003, purchases and sales of US Government obligations were $3,759,762 and $3,991,875, respectively, for the Income and Growth Portfolio, and $23,642,896 and $26,403,353, respectively, for the Investment Grade Portfolio. Identified cost of investments sold is used for both financial reporting and federal income tax purposes.

At December 31, 2003, the cost of investments for federal income tax purposes may be greater than the cost for financial reporting purposes, primarily due to the tax deferral of losses on wash sales. The tax basis cost and gross unrealized appreciation and depreciation of portfolio securities, including the effects of foreign currency translations, were as follows:

Portfolio		Tax Basis Cost		Unrealized Appreciation		Unrealized Depreciation	Portfolio		Tax Basis Cost		Unrealized Appreciation		Unrealized Depreciation
Capital	$	14,169,572	$	2,723,257	$	99,686	High-Yield Bond	$	7,083,164	$	491,632	$	13,363
Common Stock		11,031,903		1,573,276		311,163	Income and Growth		2,592,211		248,310		17,650
Communications and Information		67,670,801		10,736,162		4,600,768	International Growth		2,966,870		421,583		17,276
Frontier		5,962,450		1,645,713		83,879	Investment Grade		5,910,234		66,172		13,018
Global Growth		2,440,346		318,468		8,666	Large-Cap Growth		2,350,975		280,351		158,245
Global Smaller Companies		5,971,470		699,547		156,378	Large-Cap Value		4,866,206		841,090		277,451
Global Technology		10,494,306		1,880,946		478,194	Small-Cap Value		195,200,250		65,199,292		10,111,638

Transactions in options written during the year ended December 31, 2003, were as follows:

	Call Options
		Contracts			Premiums
Communications and Information Portfolio:
Options outstanding, December 31, 2002		—			—
Options written		56		$	10,441
Options expired		(56	)		(10,441	)
Options written and outstanding, December 31, 2003		—		$	—
Global Technology Portfolio:
Options outstanding, December 31, 2002		—			—
Options written		53,800		$	34,439
Options terminated in closing purchase transactions		(46,800	)		(29,784	)
Options exercised		(7,000	)		(4,655	)
Options outstanding, December 31, 2003		—		$	—

5. 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, Income and Growth, and Investment Grade Portfolios’ average daily net assets; equal to 0.75%, on an annual basis, of each of Communications and Information and Frontier Portfolios’ average daily net assets; and equal to 0.50%, on an annual basis, of High-Yield Bond 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. The Manager’s fee for the Large-Cap Growth Portfolio is equal to 0.70% per annum of the first $1 billion of average daily net assets, 0.65% per annum of the next $1 billion, and 0.60% per annum in excess of $2 billion of average daily net assets of the Portfolio. The Manager’s fee for the Large-Cap Value Portfolio is equal to 0.80% per annum of the first $500 million of average daily net assets, 0.70% per annum of the next $500 million of average daily net assets, and 0.60% per annum in excess of $1 billion of average daily net assets of the Portfolio. The Manager’s fee for the Small-Cap Value Portfolio is equal to 1.00% per annum of the first $500 million of average daily net assets, 0.90% per annum of the next $500 million of average daily net assets, and 0.80% per annum in excess of $1 billion of average daily net assets of the Portfolio.    Effective September 15, 2003, in connection with engagement of a subadviser, the Manager began advising Global Growth Portfolio, Global Smaller Companies Portfolio and International Growth Portfolio (the “Subadvised Portfolios”) under an interim management agreement. Under the interim management agreement, the annual management fee rate with respect to the Global Growth Portfolio and the International Growth Portfolio was equal to 1.00% on the first $50 million of the Portfolio’s average daily net assets, 0.95% on the next $1 billion of the Portfolio’s average daily net assets, and 0.90% of the Portfolio’s average daily net assets in excess of $1.05 billion. Also, under the interim management agreement, effective September 15, 2003, the annual management fee rate with respect to Global Smaller Companies Portfolio was changed to equal 1.00% of the first $100 million of that Portfolio’s average daily net assets, and 0.90% of the Portfolio's average daily net assets in excess of $100 million. At a special meeting on December 4, 2003, shareholders of the Subadvised Portfolios approved a new management agreement that is substantially similar in all material respects to the interim management agreement. Such new management agreement became effective on December 5, 2003, and the interim management agreement terminated in accordance with its terms. Prior to September 15, 2003, the Manager’s fee for the Subadvised Portfolios was equal to 1.00% per annum of the first $1 billion of average daily net assets, 0.95% per annum of the next $1 billion of average daily net assets, and 0.90% per annum in excess of $2 billion of average daily net assets of each Portfolio.

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Seligman Portfolios, Inc.

Notes to Financial Statements

Effective August 11, 2003, the Manager agreed to reimburse expenses, other than management and 12b-1 fees, that exceed the following rates per annum of the average daily net assets of certain Portfolios, or discontinued such reimbursement:

	Rate Prior		Rate Beginning			Rate Prior		Rate Beginning
Portfolio	to 8/11/03		8/11/03		Portfolio	to 8/11/03		8/11/03
Capital	0.40	%	None		High-Yield Bond	0.50	%	None
Cash Management	0.30		0.30	%	Income and Growth	0.55		0.75	%
Common Stock	0.40		None		International Growth	0.40		1.00
Communications and Information	0.40		None		Investment Grade	0.45		0.45
Frontier	0.75		None		Large-Cap Growth	0.45		None
Global Growth	0.40		0.75		Large-Cap Value	0.40		None
Global Smaller Companies	0.40		1.00		Small-Cap Value	0.20		None
Global Technology	0.40		0.90

The amounts of these reimbursements, where applicable, for the year ended December 31, 2003, are disclosed in the Statements of Operations, and such amounts receivable from the Manager at December 31, 2003 are disclosed in the Statements of Assets and Liabilities. Effective September 15, 2003, under an interim subadvisory agreement, Wellington Management Company, LLP (the "Subadviser"), became Subadviser to the Subadvised Portfolios and was responsible for furnishing investment advice, research and assistance with respect to the Subadvised Portfolios. Under the interim subadvisory agreement, the Manager paid the Subadviser a subadvisory fee for each of the Subadvised Portfolios determined as follows: for Global Growth Portfolio and International Growth Portfolio, the Subadviser received 0.45% on the first $50 million of each Portfolio’s average daily net assets and 0.40% of each Portfolio’s average daily net assets in excess of $50 million; for Global Smaller Companies Portfolio, the Subadviser received 0.75% on the first $100 million of the Portfolio’s average daily net assets and 0.65% of the Portfolio’s average daily net assets in excess of $100 million. At a special meeting on December 4, 2003, shareholders of the Subadvised Portfolios approved a new subadvisory agreement that is substantially similar in all material aspects to the interim subadvisory agreement. Such new subadvisory agreement became effective on December 5, 2003, and the interim agreement terminated in accordance with its terms. 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 and of contracts issued by variable annuity separate accounts of one insurance company and its affiliates. For the year ended December 31, 2003, the Distributor earned fees of $3,116 for distributing such contracts. Under a Rule 12b-1 plan (the “Plan”) adopted by the Fund with respect to Class 2 shares of each Portfolio, insurance companies or their affiliates can enter into agreements with the Distributor and receive 12b-1 fees of up to 0.25%, on an annual basis, of the average daily net assets of Class 2 shares attributable to the particular insurance company for providing, among other things, personal services and/or the maintenance of shareholder accounts. Such fees are paid quarterly by each Portfolio to Seligman Advisors pursuant to the Plan. For the year ended December 31, 2003, fees incurred under the Plan aggregated $8,529, or 0.25% per annum; $22,594, or 0.25% per annum; $3,024 or 0.15% per annum; and $23,613 or 0.19% per annum of the average daily net assets of Class 2 shares of Capital Portfolio, Communications and Information Portfolio, Global Technology Portfolio and Small-Cap Value Portfolio, respectively. Certain officers and directors of the Fund are officers or directors of the Manager and the Distributor.          The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Directors may elect to have their deferred fees accrue interest or earn a return based on the performance of the other funds in the Seligman Group of Investment Companies. The cost of such fees and earnings/loss accrued thereon is included in directors’ fees and expenses, and the accumulated balances at December 31, 2003, are included in accrued expenses and other liabilities. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid.

6.

Capital Loss Carryforwards and Other Tax Adjustments — At December 31, 2003, the Portfolios had net capital loss carryforwards for federal income tax purposes which are available for offset against future taxable net capital gains. The amounts were determined after adjustments for certain differences between financial reporting and tax purposes, such as wash sale losses. Accordingly, no capital gain distributions are expected to be paid to shareholders of these portfolios until net capital gains have been realized in excess of the available capital loss carryforwards. These loss carryforwards expire in fiscal years and amounts as follows:

Fiscal Year		Capital		Common Stock		Communications and Information		Frontier		Global Growth		Global Smaller Companies		Global Technology
2009	$	7,281,903		—	$	25,201,855	$	213,369	$	1,166,220	$	203,513	$	9,391,778
2010		6,635,561	$	4,289,259		19,435,297		1,533,424		844,615		1,302,299		4,941,506
2011		—		366,561		5,578,202		135,686		—		—		108,762
Total	$	13,917,464	$	4,655,820	$	50,215,354	$	1,882,479	$	2,010,835	$	1,505,812	$	14,442,046

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Notes to Financial Statements

Fiscal Year		High-Yield Bond		Income and Growth		International Growth		Large-Cap Growth		Large-Cap Value
2007	$	1,024,202		—		—		—		—
2008		2,846,366	$	133,169	$	696,478		—		—
2009		5,531,270		21,063		1,358,382	$	1,582,183	$	34,864
2010		4,147,273		564,798		906,868		1,222,251		770,247
2011		—		—		—		57,774		649,837
Total	$	13,549,111	$	719,030	$	2,961,728	$	2,862,208	$	1,454,948

At December 31, 2003, the components of accumulated earnings (losses) on a tax basis were as follows:

				Common			Communications						Global			Global Smaller			Global
		Capital			Stock			and Information			Frontier			Growth			Companies			Technology
Undistributed ordinary income/(accumulated loss)		—		$	106,166			—			—		$	9,132			—		$	(4,534	)
Capital loss carryforward	$	(13,917,464	)		(4,655,820	)	$	(50,215,354	)	$	(1,882,479	)		(2,010,835	)	$	(1,505,812	)		(14,442,046	)
Timing differences (post-October losses)		—			—			—			—			—			(5,761	)		—
Net unrealized appreciation on investments, including the effects of foreign currency translations		2,623,571			1,262,113			6,133,519			1,561,834			310,377			543,581			1,402,452
Total accumulated losses	$	(11,293,893	)	$	(3,287,541	)	$	(44,081,835	)	$	(320,645	)	$	(1,691,326	)	$	(967,992	)	$	(13,044,128	)

		High-Yield Bond			Income and Growth			International Growth			Investment Grade		Large-Cap Growth			Large-Cap Value			Small-Cap Value
Undistributed ordinary income/(accumulated loss)	$	639,491		$	52,754		$	12,602		$	462,752		—		$	61,604			—
Undistributed net realized
gain/(capital loss carryforward)		(13,549,111	)		(719,030	)		(2,961,728	)		134,694	$	(2,862,208	)		(1,454,948	)	$	120,283
Timing differences (post-October losses)		—			—			—			—		(25,900	)		(137,003	)		—
Net unrealized appreciation on investments, including the effects of foreign currency translations		478,269			230,660			405,269			53,154		120,383			563,639			55,087,654
Total accumulated earnings (losses)	$	(12,431,351	)	$	(435,616	)	$	(2,543,857	)	$	650,600	$	(2,767,725	)	$	(966,708	)	$	55,207,937

As shown above, the Global Smaller Companies, Large-Cap Growth and Large-Cap Value Portfolios have elected to defer to January 1, 2004, the recognition for tax purposes of net losses realized on sales of investments after October 31, 2003. These post-October losses are available to offset future taxable net gains.

7.

Committed Line of Credit — Effective January 16, 2004, all of the Portfolios, except the Cash Management Portfolio, are participants in a joint $445 million committed line of credit that is shared by substantially all open-end funds in the Seligman Group of Investment Companies. At December 31, 2003, the committed line of credit was $420 million. 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 2004, but is renewable annually with the consent of the participating banks. For the year ended December 31, 2003, none of the Portfolios borrowed from the credit facility.

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Seligman Portfolios, Inc.

Notes to Financial Statements

8. Outstanding Forward Exchange Currency Contracts — At December 31, 2003, the Portfolio had outstanding forward exchange currency contracts to purchase or sell foreign currencies as follows:

		In				Unrealized
	Foreign	Exchange	Settlement	Value		Appreciation
Contract	Currency	for US$	Date	US$		(Depreciation)
Global Growth
Bought:
British pounds	908	1,615	1/5/04	1,620	$	5
Global Smaller Companies
Bought:
Australian dollars	400	297	1/2/04	301	$	4
Canadian dollars	127	97	1/2/04	98		1
Euros	882	1,102	1/2/04	1,112		10
Australian dollars	167	124	1/5/04	125		1
Canadian dollars	862	666	1/5/04	667		1
Euros	811	1,018	1/5/04	1,022		4
Australian dollars	793	597	1/6/04	597		—
Sold:
Swedish krona	2,133	291	1/2/04	296	$	(5	)
Japanese yen	1,892,110	17,687	1/5/04	17,661		26
Japanese yen	136,988	1,281	1/6/04	1,279		2
Japanese yen	320,291	2,993	1/7/04	2,990		3
Australian dollars	198,000	140,248	12/31/04	142,927		(2,679	)
Euros	188,000	230,627	12/31/04	234,442		(3,815	)
British pounds	148,000	253,492	12/31/04	256,599		(3,107	)
Global Technology
Bought:
Euros	57,546	72,135	1/2/04	72,506	$	371
Euros	47,279	59,751	1/4/04	59,569		(182	)
International Growth
Bought:
South African rand	80,560	11,675	1/2/04	12,042	$	367
Japanese yen	426,480	3,987	1/5/04	3,981		(6	)
Japanese yen	432,389	4,044	1/6/04	4,036		(8	)

9. Capital Stock Transactions — At December 31, 2003, there were 20,000,000 shares of Capital Stock authorized for each of Global Growth, Global Technology, Large-Cap Growth, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000 shares for each of Capital, Global Smaller Companies, International Growth, Income and Growth, and Investment Grade Portfolios; and 100,000,000 shares for each of Cash Management, Common Stock, Communications and Information, Frontier, and High-Yield Bond Portfolios, all at a par value of $0.001 per share. Transactions in shares of Capital Stock were as follows:

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Seligman Portfolios, Inc.

Notes to Financial Statements

	Capital Portfolio										Cash					Common
											Management					Stock
	Class 1					Class 2					Portfolio					Portfolio
	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2003		2002			2003		2002			2003		2002			2003		2002
Sale of shares		72,801		84,406			94,464		144,178			4,805,410		10,887,120			305,659		373,419
Shares issued in payment of dividends		—		—			—		—			24,264		92,373			17,054		20,745
Shares issued in payment of gain distributions		—		—			—		—			12		2,266			—		—
Total		72,801		84,406			94,464		144,178			4,829,686		10,981,759			322,713		394,164
Shares redeemed		(393,877	)	(625,171	)		(56,319	)	(100,877	)		(8,665,691	)	(15,319,579	)		(715,328	)	(929,205	)
Increase (decrease) in shares		(321,076	)	(540,765	)		38,145		43,301			(3,836,005	)	(4,337,820	)		(392,615	)	(535,041	)

	Communications and Information Portfolio
											Frontier					Global Growth
	Class 1					Class 2					Portfolio					Portfolio
	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2003		2002			2003		2002			2003		2002			2003		2002
Sale of shares		373,511		848,542			313,833		1,345,136			194,784		270,170			300,494		441,279
Shares redeemed		(1,644,702	)	(3,174,161	)		(278,228	)	(1,720,065	)		(371,397	)	(538,508	)		(440,554	)	(737,027	)
Increase (decrease) in shares		(1,271,191	)	(2,325,619	)		35,605		(374,929	)		(176,613	)	(268,338	)		(140,060	)	(295,748	)

						Global Technology Portfolio
	Global Smaller
	Companies Portfolio					Class 1					Class 2					High-Yield Bond Portfolio
	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2003		2002			2003		2002			2003		2002			2003		2002
Sale of shares		243,317		381,856			11,232		286,268			951,868		813,503			777,642		882,926
Shares issued in payment of dividends		—		—			—		—			—		—			172,813		288,275
Total		243,317		381,856			11,232		286,268			951,868		813,503			950,455		1,171,201
Shares redeemed		(403,044	)	(592,193	)		(234,923	)	(659,709	)		(927,201	)	(881,261	)		(1,168,356	)	(1,552,366	)
Increase (decrease) in shares		(159,727	)	(210,337	)		(223,691	)	(373,441	)		24,667		(67,758	)		(217,901	)	(381,165	)

	Income and Growth Portfolio					International Growth Portfolio					Investment Grade Fixed Income Portfolio					Large-Cap Growth Portfolio
	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2003		2002			2003		2002			2003		2002			2003		2002
Sale of shares		114,117		194,984			236,672		323,226			247,274		459,362			269,501		379,327
Shares issued in payment of dividends		8,659		20,608			—		—			28,832		34,070			—		—
Total		122,776		215,592			236,672		323,226			276,106		493,432			269,501		379,327
Shares redeemed		(222,443	)	(277,171	)		(340,729	)	(425,787	)		(560,251	)	(346,985	)		(270,277	)	(503,962	)
Increase (decrease) in shares		(99,667	)	(61,579	)		(104,057	)	(102,561	)		(284,145	)	146,447			(776	)	(124,635	)

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Notes to Financial Statements

						Small-Cap Value Portfolio
	Large-Cap Value
	Portfolio					Class 1					Class 2
	Year Ended December 31,					Year Ended December 31,					Year Ended December 31,
		2003		2002			2003		2002			2003		2002
Sale of shares		347,857		550,357			6,743,225		7,677,545			817,438		925,578
Shares issued in payment of dividends		8,090		9,996			—		—			—		—
Shares issued in payment of gain distributions		—		—			84,969		134,645			7,384		11,620
Total		355,947		560,353			6,828,194		7,812,190			824,822		937,198
Shares redeemed		(435,901	)	(628,981	)		(3,126,486	)	(5,945,012	)		(374,812	)	(546,162	)
Increase (decrease) in shares		(79,954	)	(68,628	)		3,701,708		1,867,178			450,010		391,036

10. Other Matters — The Manager has been conducting an extensive internal review in response to recent developments regarding disruptive or illegal practices within the mutual fund industry. The Manager’s review noted one market timing relationship that 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 in September 2003. Additionally, the Manager identified three other market timing arrangements, all of which had been terminated, the most recent in September 2002. The Manager is confident that any financial impact of these arrangements on any Seligman Fund was minimal. The Securities and Exchange Commission (the “SEC”) and the Attorney General of the State of New York also are reviewing these matters.            In connection with the Manager’s internal review, the Manager has also reviewed its practice of placing some of the Seligman Equity Funds’ orders to buy and sell portfolio securities with brokerage firms in recognition of their sales of Seligman Funds. This is a common practice and permissible when done properly. Although the Manager believes that the execution of all such orders was consistent with its best execution obligations, the Manager may have violated applicable requirements for certain of such orders as a result of compensation arrangements that the Distributor had with certain brokerage firms. The Manager is confident that the Seligman Equity Funds did not pay higher brokerage commissions than they would otherwise have paid for comparable transactions. The Manager is also responding to information requests from the SEC relating to the Manager’s use of revenue sharing and fund portfolio brokerage commissions.            The Independent Directors of the Board of the Fund have been reviewing, and will continue to review, the foregoing matters. If the Fund has incurred financial harm as a result of violations of law or internal policies by the Manager or its personnel, the Manager will make restitution to the Fund.

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Seligman Portfolios, Inc.

Financial Highlights

The tables below are intended to help you understand the financial performance of each Class of each Portfolio for the past five years or from its inception, if less than five years. Certain information reflects financial results for a single share that was held throughout the periods shown. Per share amounts are calculated using average shares outstanding. "Total return" shows the rate that you would have earned (or lost) on an investment in each Portfolio, assuming you reinvested all your dividends and capital gain distributions. Total returns do not reflect any administrative fees or asset-based sales charges that are associated with variable annuity and variable life insurance contracts, and are not annualized for periods of less than one year. 

Capital Portfolio

CLASS 1

	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	8.29		$	12.37		$	24.68		$	23.90		$	20.81
Income (Loss) from Investment Operations:
Net investment income (loss)		(0.03	)		(0.05	)		(0.06	)		0.02			0.01
Net realized and unrealized gain (loss) on investments		3.02			(4.03	)		(4.01	)		2.06			10.21
Total from Investment Operations		2.99			(4.08	)		(4.07	)		2.08			10.22
Less Distributions:
Dividends from net investment income		—			—			(0.02	)		—			(0.01	)
Distributions from net realized capital gain		—			—			(8.22	)		(1.30	)		(7.12	)
Total Distributions		—			—			(8.24	)		(1.30	)		(7.13	)
Net Asset Value, End of Year	$	11.28		$	8.29		$	12.37		$	24.68		$	23.90
Total Return:		36.07	%		(32.98)	%		(15.97)	%		8.50	%		53.33	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	12,486		$	11,833		$	24,349		$	37,138		$	27,586
Ratio of expenses to average net assets		0.82	%		0.80	%		0.61	%		0.59	%		0.59	%
Ratio of net investment income (loss) to average net assets		(0.33)	%		(0.47)	%		(0.31)	%		0.07	%		0.03	%
Portfolio turnover rate		140.59	%		129.07	%		215.16	%		230.42	%		172.88	%
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.

See Notes to Financial Statements.

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Financial Highlights

Capital Portfolio
CLASS 2
	Year Ended December 31,									8/30/00* to
Per Share Data:		2003			2002			2001			12/31/00
Net Asset Value, Beginning of Period	$	8.25		$	12.34		$	24.68		$	33.31
Income (Loss) from Investment Operations:
Net investment loss		(0.05	)		(0.07	)		(0.11	)		(0.05	)
Net realized and unrealized gain (loss) on investments		3.00			(4.02	)		(4.01	)		(7.28	)
Total from Investment Operations		2.95			(4.09	)		(4.12	)		(7.33	)
Less Distributions:
Distribution from net realized capital gain		—			—			(8.22	)		(1.30	)
Total Distributions		—			—			(8.22	)		(1.30	)
Net Asset Value, End of Period	$	11.20		$	8.25		$	12.34		$	24.68
Total Return:		35.76	%		(33.14)	%		(16.18)	%		(22.15)	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	4,353		$	2,891		$	3,792		$	1,569
Ratio of expenses to average net assets		1.07	%		1.05	%		0.85	%		0.84%	†
Ratio of net investment loss to average net assets		(0.58)	%		(0.72)	%		(0.55)	%		(0.66)%	†
Portfolio turnover rate		140.59	%		129.07	%		215.16	%		230.42%	††
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.21	%		1.06	%		0.94	%
Ratio of net investment loss to average net assets		(0.72)	%		(0.73)	%		(0.63)	%

Cash Management Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	1.000		$	1.000		$	1.000		$	1.000		$	1.000
Income from Investment Operations:
Net investment income		0.004			0.010			0.038			0.062			0.050
Total from Investment Operations		0.004			0.010			0.038			0.062			0.050
Less Distributions:
Dividends from net investment income		(0.004	)		(0.010	)		(0.038	)		(0.062	)		(0.050	)
Total Distributions		(0.004	)		(0.010	)		(0.038	)		(0.062	)		(0.050	)
Net Asset Value, End of Year	$	1.000		$	1.000		$	1.000		$	1.000		$	1.000
Total Return:		0.38	%		1.00	%		3.88	%		6.38	%		5.07	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	4,034		$	7,870		$	12,211		$	12,318		$	17,611
Ratio of expenses to average net assets		0.70	%		0.69	%		0.07	%		—			—
Ratio of net investment income to average net assets		0.39	%		0.98	%		3.82	%		6.17	%		4.99	%
Without management fee waiver and/or expense reimbursement:ø
Ratio of expenses to average net assets		0.83	%					0.72	%		0.72	%		0.65	%
Ratio of net investment income to average net assets		0.26	%					3.17	%		5.45	%		4.34	%

_____________

*	Commencement of offering of shares.
†	Annualized.
††	For the year ended December 31, 2000.
Ø	The Manager, at its discretion, waived management fees and/or reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

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Financial Highlights

Common Stock Portfolio
CLASS 1	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	7.80		$	10.84		$	14.23		$	16.61		$	18.63
Income (Loss) from Investment Operations:
Net investment income		0.08			0.08			0.08			0.12			0.32
Net realized and unrealized gain (loss) on investments		1.97			(3.02	)		(1.85	)		(1.86	)		2.03
Total from Investment Operations		2.05			(2.94	)		(1.77	)		(1.74	)		2.35
Less Distributions:
Dividends from net investment income		(0.13	)		(0.10	)		(0.15	)		(0.01	)		(0.32	)
Distributions from net realized capital gain		—			—			(1.47	)		(0.63	)		(4.05	)
Total Distributions		(0.13	)		(0.10	)		(1.62	)		(0.64	)		(4.37	)
Net Asset Value, End of Year	$	9.72		$	7.80		$	10.84		$	14.23		$	16.61
Total Return:		26.30	%		(27.16)	%		(12.24)	%		(10.53)	%		13.15	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	12,297		$	12,931		$	23,756		$	32,738		$	47,303
Ratio of expenses to average net assets		0.73	%		0.60	%		0.59	%		0.60	%		0.52	%
Ratio of net investment income to average net assets		0.92	%		0.88	%		0.59	%		0.71	%		1.30	%
Portfolio turnover rate		127.26	%		131.95	%		64.45	%		52.01	%		38.11	%

_____________

See Notes to Financial Statements.

 68

Seligman Portfolios, Inc.

Financial Highlights

Communications and Information Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	8.05		$	12.59		$	14.82		$	26.70		$	17.14
Income (Loss) from Investment Operations:
Net investment loss		(0.07	)		(0.07	)		(0.07	)		(0.11	)		(0.10	)
Net realized and unrealized gain (loss) on investments		3.64			(4.47	)		0.80			(9.45	)		14.36
Total from Investment Operations		3.57			(4.54	)		0.73			(9.56	)		14.26
Less Distributions:
Distributions from net realized capital gain		—			—			(2.96	)		(2.32	)		(4.70	)
Total Distributions		—			—			(2.96	)		(2.32	)		(4.70	)
Net Asset Value, End of Year	$	11.62		$	8.05		$	12.59		$	14.82		$	26.70
Total Return:		44.35	%		(36.06)	%		5.34	%		(36.19)	%		85.81	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	62,903		$	53,769		$	113,424		$	127,901		$	213,961
Ratio of expenses to average net assets		1.01	%		0.98	%		0.93	%		0.87	%		0.86	%
Ratio of net investment loss to average net assets		(0.78)	%		(0.76)	%		(0.45)	%		(0.48)	%		(0.51)	%
Portfolio turnover rate		105.53	%		91.37	%		130.94	%		104.41	%		118.16	%

CLASS 2
	Year Ended December 31,									5/1/00*
											to
Per Share Data:		2003			2002			2001			12/31/00
Net Asset Value, Beginning of Period	$	7.99		$	12.53		$	14.80		$	30.61
Income (Loss) from Investment Operations:
Net investment loss		(0.10	)		(0.10	)		(0.11	)		(0.08	)
Net realized and unrealized gain (loss) on investments		3.62			(4.44	)		0.80			(13.41	)
Total from Investment Operations		3.52			(4.54	)		0.69			(13.49	)
Less Distributions:
Distribution from net realized capital gain		—			—			(2.96	)		(2.32	)
Total Distributions		—			—			(2.96	)		(2.32	)
Net Asset Value, End of Period	$	11.51		$	7.99		$	12.53		$	14.80
Total Return:		44.06	%		(36.23)	%		5.08	%		(44.40)	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	11,280		$	7,544		$	16,537		$	7,822
Ratio of expenses to average net assets		1.26	%		1.23	%		1.18	%		1.12%	†
Ratio of net investment loss
to average net assets		(1.03)	%		(1.01)	%		(0.70)	%		(0.61)%	†
Portfolio turnover rate		105.53	%		91.37	%		130.94	%		104.41%	††

_____________

*	Commencement of offering of shares.
†	Annualized.
††	For the year ended December 31, 2000.

See Notes to Financial Statements.

69

Seligman Portfolios, Inc.

Financial Highlights

Frontier Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	9.64		$	13.12		$	15.26		$	18.13		$	15.55
Income (Loss) from Investment Operations:
Net investment loss		(0.15	)		(0.11	)		(0.05	)		(0.13	)		(0.10	)
Net realized and unrealized gain (loss) on investments		3.94			(3.37	)		(1.12	)		(2.74	)		2.68
Total from Investment Operations		3.79			(3.48	)		(1.17	)		(2.87	)		2.58
Less Distributions:
Distributions from net realized capital gain		—			—			(0.97	)		—			—
Total Distributions		—			—			(0.97	)		—			—
Net Asset Value, End of Year	$	13.43		$	9.64		$	13.12		$	15.26		$	18.13
Total Return:		39.32	%		(26.52)	%		(7.35)	%		(15.83)	%		16.59	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	7,503		$	7,089		$	13,174		$	17,011		$	25,706
Ratio of expenses to average net assets		1.68	%		1.23	%		1.01	%		0.95	%		0.95	%
Ratio of net investment loss to average net assets		(1.39)	%		(0.93)	%		(0.38)	%		(0.73)	%		(0.68)	%
Portfolio turnover rate		107.33	%		83.83	%		125.78	%		150.67	%		57.93	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.71	%					1.24	%		1.18	%		0.96	%
Ratio of net investment loss to average net assets		(1.42)	%					(0.61)	%		(0.96)	%		(0.69)	%

_____________

Ø  The Manager, at its discretion, reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

70

Seligman Portfolios, Inc.

Financial Highlights

Global Growth Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	3.05		$	4.02		$	15.11		$	18.22		$	13.33
Income (Loss) from Investment Operations:
Net investment income (loss)		0.02			—			0.02			(0.13	)		(0.06	)
Net realized and unrealized gain (loss) on investments		0.67			(1.19	)		(2.99	)		(2.28	)		7.31
Net realized and unrealized gain (loss) on foreign currency transactions		0.23			0.22			(0.20	)		(0.46	)		(0.44	)
Total from Investment Operations		0.92			(0.97	)		(3.17	)		(2.87	)		6.81
Less Distributions:
Distributions from net realized capital gain		—			—			(7.92	)		(0.24	)		(1.92	)
Total Distributions		—			—			(7.92	)		(0.24	)		(1.92	)
Net Asset Value, End of Year	$	3.97		$	3.05		$	4.02		$	15.11		$	18.22
Total Return:		30.16	%		(24.13)	%		(19.93)	%		(15.78)	%		52.49	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	2,869		$	2,634		$	4,659		$	8,348		$	11,889
Ratio of expenses to average net assets		1.54	%		1.40	%		1.40	%		1.40	%		1.40	%
Ratio of net investment income (loss) to average net assets		0.49	%		0.13	%		0.13	%		(0.67)	%		(0.38)	%
Portfolio turnover rate		255.31	%		145.90	%		161.49	%		125.84	%		69.18	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		3.83	%		2.08	%		1.74	%		1.71	%		1.45	%
Ratio of net investment loss to average net assets		(1.80)	%		(0.55)	%		(0.20)	%		(0.98)	%		(0.43)	%

_____________

Ø The Manager, at its discretion, reimbursed expenses for the periods presented.

See Notes to Financial Statements.

71

Seligman Portfolios, Inc.

Financial Highlights

Global Smaller Companies Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	7.79		$	10.33		$	14.40		$	17.48		$	13.62
Income (Loss) from Investment Operations:
Net investment loss		(0.01	)		(0.06	)		(0.06	)		(0.09	)		(0.06	)
Net realized and unrealized gain (loss) on investments		2.69			(3.00	)		(1.40	)		(1.91	)		4.10
Net realized and unrealized gain (loss) on foreign currency transactions		0.52			0.52			(0.79	)		(0.56	)		(0.18	)
Total from Investment Operations		3.20			(2.54	)		(2.25	)		(2.56	)		3.86
Less Distributions:
Distributions from net realized capital gain		—			—			(1.82	)		(0.52	)		—
Total Distributions		—			—			(1.82	)		(0.52	)		—
Net Asset Value, End of Year	$	10.99		$	7.79		$	10.33		$	14.40		$	17.48
Total Return:		41.08	%		(24.59)	%		(15.25)	%		(14.63)	%		23.84	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	6,587		$	5,915		$	10,017		$	14,310		$	19,569
Ratio of expenses to average net assets		1.66	%		1.40	%		1.40	%		1.39	%		1.40	%
Ratio of net investment loss to average net assets		(0.16)	%		(0.61)	%		(0.49)	%		(0.46)	%		(0.46)	%
Portfolio turnover rate		271.45	%		93.43	%		100.83	%		84.86	%		46.75	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		4.08	%		2.15	%		1.96	%					1.60	%
Ratio of net investment loss to average net assets		(2.58)	%		(1.36)	%		(1.05)	%					(0.66)	%

_____________

ø The Manager, at its discretion, reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

72

Seligman Portfolios, Inc.

Financial Highlights

Global Technology Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	8.86		$	12.96		$	20.14		$	27.42		$	13.85
Income (Loss) from Investment Operations:
Net investment loss		(0.11	)		(0.11	)		(0.14	)		(0.13	)		(0.09	)
Net realized and unrealized gain (loss) on investments		2.98			(4.32	)		(4.06	)		(6.34	)		16.25
Net realized and unrealized gain (loss) on foreign currency transactions		0.33			0.33			(0.25	)		(0.01	)		(0.04	)
Total from Investment Operations		3.20			(4.10	)		(4.45	)		(6.48	)		16.12
Less Distributions:
Distributions from net realized capital gain		—			—			(2.73	)		(0.80	)		(2.55	)
Total Distributions		—			—			(2.73	)		(0.80	)		(2.55	)
Net Asset Value, End of Year	$	12.06		$	8.86		$	12.96		$	20.14		$	27.42
Total Return:		36.12	%		(31.64)	%		(22.05)	%		(23.75)	%		118.80	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	10,047		$	9,361		$	18,533		$	25,370		$	22,087
Ratio of expenses to average net assets		1.61	%		1.40	%		1.40	%		1.30	%		1.40	%
Ratio of net investment loss
to average net assets		(1.14)	%		(1.06)	%		(0.87)	%		(0.46)	%		(0.51)	%
Portfolio turnover rate		188.00	%		144.18	%		160.75	%		142.42	%		116.88	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		2.39	%		1.80	%		1.61	%					1.41	%
Ratio of net investment loss to average net assets		(1.92)	%		(1.46)	%		(1.08)	%					(0.52)	%

CLASS 2
	Year Ended December 31,									5/1/00*
										to
Per Share Data	2003			2002			2001			12/31/00
Net Asset Value, Beginning of Period	$	8.82		$	12.93		$	20.14		$	30.96
Income (Loss) from Investment Operations:
Net investment loss		(0.13	)		(0.13	)		(0.17	)		(0.12	)
Net realized and unrealized gain (loss) on investments		2.98			(4.31	)		(4.06	)		(10.01	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.33			0.33			(0.25	)		0.11
Total from Investment Operations		3.18			(4.11	)		(4.48	)		(10.02	)
Less Distributions:
Distributions from net realized capital gain		—			—			(2.73	)		(0.80	)
Total Distributions		—			—			(2.73	)		(0.80	)
Net Asset Value, End of Period	$	12.00		$	8.82		$	12.93		$	20.14
Total Return:		36.05	%		(31.79)	%		(22.20)	%		(25.99)	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	2,470		$	1,598		$	3,219		$	3,400
Ratio of expenses to average net assets		1.76	%		1.55	%		1.54	%		1.55%†
Ratio of net investment loss to average net assets		(1.29)	%		(1.21)	%		(1.02)	%		(0.84)%†
Portfolio turnover rate		188.00	%		144.18	%		160.75	%		142.42%††
Without expense reimbursement:ø
Ratio of expenses to average net assets		2.54	%		1.95	%		1.75	%
Ratio of net investment loss to average net assets		(2.07)	%		(1.61)	%		(1.23)	%

_____________

*	Commencement of offering of shares.
†	Annualized.
ø	The Manager, at its discretion, reimbursed expenses for certain periods presented.
††	For the year ended December 31, 2000.

See Notes to Financial Statements.

73

Seligman Portfolios, Inc.

Financial Highlights

High-Yield Bond Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	4.87		$	6.10		$	8.73		$	9.59		$	10.87
Income (Loss) from Investment Operations:
Net investment income		0.44			0.52			0.85			1.03			1.19
Net realized and unrealized gain (loss) on investments		0.72			(0.74	)		(2.14	)		(1.89	)		(1.27	)
Total from Investment Operations		1.16			(0.22	)		(1.29	)		(0.86	)		(0.08	)
Less Distributions:
Dividends from net investment income		(0.71	)		(1.01	)		(1.34	)		0.00*			(1.20	)
Distributions from net realized capital gain		—			—			—			—			—
Total Distributions		(0.71	)		(1.01	)		(1.34	)		—			(1.20	)
Net Asset Value, End of Year	$	5.32		$	4.87		$	6.10		$	8.73		$	9.59
Total Return:		23.92	%		(3.67)	%		(14.70)	%		(8.93)	%		(0.75)	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	7,720		$	8,131		$	12,510		$	15,080		$	26,892
Ratio of expenses to average net assets		1.03	%		0.91	%		0.70	%		0.70	%		0.70	%
Ratio of net investment income to average net assets		8.10	%		8.82	%		10.50	%		11.02	%		10.33	%
Portfolio turnover rate		183.09	%		170.29	%		71.22	%		29.57	%		57.05	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.15	%					0.78	%		0.78	%		0.77	%
Ratio of net investment income to average net assets		7.99	%					10.42	%		10.94	%		10.26	%

Income and Growth Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	7.62		$	9.04		$	9.65		$	9.91		$	11.01
Income (Loss) from Investment Operations:
Net investment income		0.14			0.16			0.31			0.30			0.53
Net realized and unrealized gain (loss) on investments		1.11			(1.21	)		(0.46	)		(0.52	)		(0.23	)
Total from Investment Operations		1.25			(1.05	)		(0.15	)		(0.22	)		0.30
Less Distributions:
Dividends from net investment income		(0.22	)		(0.37	)		(0.46	)		(0.01	)		(0.52	)
Distributions from net realized capital gain		—			—			—			(0.03	)		(0.88	)
Total Distributions		(0.22	)		(0.37	)		(0.46	)		(0.04	)		(1.40	)
Net Asset Value, End of Year	$	8.65		$	7.62		$	9.04		$	9.65		$	9.91
Total Return:		16.50	%		(11.58)	%		(1.49)	%		(2.20)	%		2.87	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	2,871		$	3,287		$	4,459		$	5,640		$	8,595
Ratio of expenses to average net assets		1.02	%		0.95	%		0.64	%		0.60	%		0.60	%
Ratio of net investment income to average net assets		1.70	%		1.95	%		3.34	%		3.07	%		3.62	%
Portfolio turnover rate		288.57	%		222.78	%		88.69	%		61.14	%		75.08	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.98	%		1.31	%		1.02	%		0.83	%		0.72	%
Ratio of net investment income to average net assets		0.74	%		1.59	%		2.96	%		2.84	%		3.50	%

_____________

*	During 2000, a dividend of $0.004 per share was paid.
Ø	The Manager, at its discretion, reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

74

Seligman Portfolios, Inc.

Financial Highlights

International Growth Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	6.72		$	8.05		$	10.65		$	16.63		$	15.37
Income (Loss) from Investment Operations:
Net investment income (loss)		0.05			0.04			0.03			(0.08	)		0.05
Net realized and unrealized gain (loss) on investments		1.41			(2.13	)		(2.43	)		(4.45	)		4.59
Net realized and unrealized gain (loss) on foreign currency transactions		0.79			0.76			(0.20	)		(0.88	)		(0.73	)
Total from Investment Operations		2.25			(1.33	)		(2.60	)		(5.41	)		3.91
Less Distributions:
Dividends from net investment income		—			—			—			(0.14	)		—
Distributions from net realized capital gain		—			—			—			(0.43	)		(2.65	)
Total Distributions		—			—			—			(0.57	)		(2.65	)
Net Asset Value, End of Year	$	8.97		$	6.72		$	8.05		$	10.65		$	16.63
Total Return:		33.48	%		(16.52)	%		(24.41)	%		(32.47)	%		26.64	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	3,490		$	3,315		$	4,793		$	7,150		$	10,248
Ratio of expenses to average net assets		1.64	%		1.40	%		1.40	%		1.40	%		1.39	%
Ratio of net investment income (loss) to average net assets		0.67	%		0.49	%		0.34	%		(0.57)	%		0.33	%
Portfolio turnover rate		285.08	%		183.86	%		199.09	%		275.32	%		79.17	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		3.45	%		1.96	%		1.80	%		2.03	%		1.66	%
Ratio of net investment income (loss) to average net assets		(1.14)	%		(0.07)	%		(0.06)	%		(1.20)	%		0.06	%

_____________

ø The Manager, at its discretion, reimbursed expenses for the periods presented.

See Notes to Financial Statements.

75

Seligman Portfolios, Inc.

Financial Highlights

Investment Grade Fixed Income Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	10.80		$	10.25		$	10.22		$	9.27		$	10.38
Income (Loss) from Investment Operations:
Net investment income		0.34			0.42			0.57			0.60			0.64
Net realized and unrealized gain (loss) on investments		0.17			0.58			(0.01	)		0.35			(1.10	)
Total from Investment Operations		0.51			1.00			0.56			0.95			(0.46	)
Less Distributions:
Dividends from net investment income		(0.46	)		(0.45	)		(0.53	)		—			(0.65	)
Total Distributions		(0.46	)		(0.45	)		(0.53	)		—			(0.65	)
Net Asset Value, End of Year	$	10.85		$	10.80		$	10.25		$	10.22		$	9.27
Total Return:		4.72	%		9.83	%		5.52	%		10.25	%		(4.48)	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	6,025		$	9,067		$	7,103		$	6,483		$	4,947
Ratio of expenses to average net assets		0.85	%		0.82	%		0.63	%		0.60	%		0.60	%
Ratio of net investment income to average net assets		3.08	%		3.94	%		5.35	%		6.23	%		5.56	%
Portfolio turnover rate		445.98	%		291.98	%		146.08	%		63.07	%		64.22	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		0.91	%					0.76	%		0.84	%		0.71	%
Ratio of net investment income to average net assets		3.02	%					5.22	%		5.99	%		5.45	%

_____________

ø The Manager, at its discretion, reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

76

Seligman Portfolios, Inc.

Financial Highlights

Large-Cap Growth Portfolio
CLASS 1
	Year Ended December 31,												5/1/99*
													to
Per Share Data:		2003			2002			2001			2000			12/31/99
Net Asset Value, Beginning of Period	$	4.83		$	7.47		$	10.21		$	12.16		$	10.00
Income (Loss) from Investment Operations:
Net investment income (loss)		(0.01	)		(0.02	)		—			0.01			—
Net realized and unrealized gain (loss) on investments		1.48			(2.62	)		(1.89	)		(1.96	)		2.16
Total from Investment Operations		1.47			(2.64	)		(1.89	)		(1.95	)		2.16
Less Distributions:
Dividends from net investment income		—			—			(0.01	)		—			—
Distribution from net realized capital gain		—			—			(0.84	)		—			—
Total Distributions		—			—			(0.85	)		—			—
Net Asset Value, End of Period	$	6.30		$	4.83		$	7.47		$	10.21		$	12.16
Total Return:		30.43	%		(35.34)	%		(18.37)	%		(16.04)	%		21.60	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	2,525		$	1,938		$	3,930		$	5,255		$	3,668
Ratio of expenses to average net assets		1.29	%		1.15	%		0.74	%		0.70	%		0.70%	†
Ratio of net investment income (loss) to average net assets		(0.23)	%		(0.38)	%		(0.04)	%		0.08	%		(0.03)%	†
Portfolio turnover rate		66.98	%		81.67	%		166.24	%		179.44	%		56.69%	††
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.73	%		1.46	%		1.13	%		1.18	%		1.52%	†
Ratio of net investment loss to average net assets		(0.67)	%		(0.69)	%		(0.42)	%		(0.40)	%		(0.85)%	†

____________________

*	Commencement of operations.
†	Annualized.
††	For the year ended December 31, 1999.
ø	The Manager, at its discretion, reimbursed expenses for the periods presented.

See Notes to Financial Statements.

77

Seligman Portfolios, Inc.

Financial Highlights

Large-Cap Value Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	7.02		$	10.46		$	11.59		$	9.28		$	9.66
Income (Loss) from Investment Operations:
Net investment income		0.11			0.10			0.09			0.14			0.10
Net realized and unrealized gain (loss) on investments		2.27			(3.43	)		(1.06	)		2.25			(0.37	)
Total from Investment Operations		2.38			(3.33	)		(0.97	)		2.39			(0.27	)
Less Distributions:
Dividends from net investment income		(0.13	)		(0.11	)		(0.11	)		0.00*			(0.11	)
Distributions from net realized capital gain		—			—			(0.05	)		(0.08	)		—
Total Distributions		(0.13	)		(0.11	)		(0.16	)		(0.08	)		(0.11	)
Net Asset Value, End of Period	$	9.27		$	7.02		$	10.46		$	11.59		$	9.28
Total Return:		33.91	%		(31.90)	%		(8.28)	%		25.84	%		(2.76)	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	5,456		$	4,692		$	7,708		$	6,057		$	5,758
Ratio of expenses to average net assets		1.18	%		1.16	%		0.83	%		0.80	%		0.80	%
Ratio of net investment income
to average net assets		1.34	%		1.12	%		1.13	%		1.51	%		1.18	%
Portfolio turnover rate		16.60	%		21.83	%		28.17	%		42.29	%		28.01	%
Without expense reimbursement:ø
Ratio of expenses to average net assets		1.29	%					1.10	%		1.22	%		1.13	%
Ratio of net investment income (loss) to average net assets		1.23	%					0.86	%		1.09	%		0.85	%

_____________

*	During 2000, a dividend of $0.004 per share was paid.
Ø	The Manager, at its discretion, reimbursed expenses for certain periods presented.

See Notes to Financial Statements.

78

Seligman Portfolios, Inc.

Financial Highlights

Small-Cap Value Portfolio
CLASS 1
	Year Ended December 31,
Per Share Data:		2003			2002			2001			2000			1999
Net Asset Value, Beginning of Year	$	10.87		$	13.04		$	10.58		$	8.08		$	7.31
Income (Loss) from Investment Operations:
Net investment loss		(0.05	)		(0.06	)		(0.03	)		(0.01	)		(0.03	)
Net realized and unrealized gain (loss)
on investments		5.48			(1.94	)		2.52			2.66			2.49
Total from Investment Operations		5.43			(2.00	)		2.49			2.65			2.46
Less Distributions:
Distributions from net realized capital gain		(0.10	)		(0.17	)		(0.03	)		(0.15	)		(1.69	)
Total Distributions		(0.10	)		(0.17	)		(0.03	)		(0.15	)		(1.69	)
Net Asset Value, End of Year	$	16.20		$	10.87		$	13.04		$	10.58		$	8.08
Total Return:		49.94	%		(15.37)	%		23.52	%		33.00	%		35.26	%
Ratios/Supplemental Data:
Net assets, end of year (000s omitted)	$	214,525		$	103,770		$	100,090		$	16,495		$	4,403
Ratio of expenses to average net assets		1.16	%		1.18	%		1.19	%		1.00	%		1.00	%
Ratio of net investment loss to average net assets		(0.42)	%		(0.51)	%		(0.29)	%		(0.22)	%		(0.27)	%
Portfolio turnover rate		18.31	%		56.74	%		29.99	%		42.27	%		90.51	%
Without expense reimbursement:ø
Ratio of expenses to average net assets								1.22	%		1.45	%		1.41	%
Ratio of net investment loss to average net assets								(0.32)	%		(0.67)	%		(0.68)	%

CLASS 2
	Year Ended December 31,						5/1/01*
								to
Per Share Data:		2003			2002			12/31/01
Net Asset Value, Beginning of Period	$	10.85		$	13.04		$	10.78
Income (Loss) from Investment Operations:
Net investment loss		(0.08	)		(0.08	)		(0.03	)
Net realized and unrealized gain (loss)
on investments		5.46			(1.94	)		2.32
Total from Investment Operations		5.38			(2.02	)		2.29
Less Distributions:
Distributions from net realized capital gain		(0.10	)		(0.17	)		(0.03	)
Total Distributions		(0.10	)		(0.17	)		(0.03	)
Net Asset Value, End of Period	$	16.13		$	10.85		$	13.04
Total Return:		49.57	%		(15.52)	%		21.23	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	19,978		$	8,554		$	5,178
Ratio of expenses to average net assets		1.35	%		1.37	%		1.39%†
Ratio of net investment loss to average net assets		(0.61)	%		(0.70)	%		(0.46)%†
Portfolio turnover rate		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.
ø	The Manager, at its discretion, reimbursed expenses for certain periods presented.
††	For the year ended December 31, 2001.

See Notes to Financial Statements.

79

Seligman Portfolios, Inc.

Report of Ernst & Young LLP, Independent Auditors

The Directors and Shareholders,

Seligman Portfolios, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Seligman Portfolios, Inc. (comprising respectively, the Seligman Capital Portfolio, Seligman Cash Management Portfolio, Seligman Common Stock Portfolio, Seligman Communications and Information Portfolio, Seligman Frontier Portfolio, Seligman Global Growth Portfolio, Seligman Global Smaller Companies Portfolio, Seligman Global Technology Portfolio, Seligman High-Yield Bond Portfolio, Seligman Income and Growth Portfolio (formerly, Seligman Income Portfolio), Seligman International Growth Portfolio, Seligman Investment Grade Fixed Income Portfolio, Seligman Large-Cap Growth Portfolio, Seligman Large-Cap Value Portfolio, and Seligman Small-Cap Value Portfolio, and collectively referred to as the “Fund”) as of December 31, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2003, by correspondence with the custodians and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective portfolios constituting Seligman Portfolios, Inc. at December 31, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. New York, New York

 

February 13, 2004

Seligman Portfolios, Inc.

80

Seligman Portfolios, Inc.

Shareholder Meeting

Shareholders of certain Portfolios voted on the following proposals at a Special Meeting of Shareholders on December 4, 2003, in New York, NY. The description of each proposal and the voting results are stated below. The new Management Agreement and new Subadvisory Agreement were approved.

New Management Agreement:	For	Against	Abstain
Global Growth Portfolio	590,398.013	47,668.506	73,424.013
Global Smaller Companies Portfolio	543,946.477	11,472.768	61,454.601
International Growth Portfolio	372,414.620	—	12,102.438
New Subadvisory Agreement:	For	Against	Abstain
Global Growth Portfolio	524,801.157	110,337.615	76,285.241
Global Smaller Companies Portfolio	543,946.477	11,472.768	61,454.601
International Growth Portfolio	372,414.620	—	12,102.438

81

Seligman Portfolios, Inc.

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below.

Independent Directors

Name, (Age), Position(s) held with Fundø	Principal Occupation(s) During Past Five Years, Directorships and Other Information
Robert B. Catell (66)3,4 •  Director: May 2003 to Date •  Oversees 60 Portfolios in Fund Complex	Chairman and Chief Executive Officer of KeySpan Corporation (diversified energy, gas and electric company); Director or Trustee of each of the investment companies of the Seligman Group of Funds† (except Seligman Cash Management Fund, Inc.); Director, Alberta Northeast Gas, Ltd., Boundary Gas Inc., Taylor Gas Liquids, Ltd., and The Houston Exploration Company (oil and gas exploration, development and production companies); Edison Electric Institute, New York State Energy Research and Development Authority, Independence Community Bank, Business Council of New York State, Inc., New York City Partnership, and the Long Island Association (business and civic organizations).
John R. Galvin (74)2,4 •  Director: 1995 to Date •  Oversees 61 Portfolios in Fund Complex	Dean Emeritus, Fletcher School of Law and Diplomacy at Tufts University; Director or Trustee of each of the investment companies of the Seligman Group of Funds†; and Chairman Emeritus, American Council on Germany. Formerly, Governor of the Center for Creative Leadership; Director, Raytheon Co. (defense and commercial electronics) and USLIFE Corporation (life insurance). From June 1987 to June 1992, Mr. Galvin was the Supreme Allied Commander, Europe and the Commander-in-Chief, United States European Command.
Alice S. Ilchman (68)3,4 •  Director: 1991 to Date •  Oversees 61 Portfolios in Fund Complex	President Emerita, Sarah Lawrence College; Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Director, Jeannette K. Watson Summer Fellowships (summer internships for col­lege students); Trustee, Save the Children (non-profit child-assistance organization) and the Committee for Economic Development; a Governor of the Court of Governors, London School of Economics; and Director, Public Broadcasting Service (PBS). Formerly, Chairman, The Rockefeller Foundation (charitable foundation) and Director, New York Telephone Company.
Frank A. McPherson (70)3,4 •  Director: 1995 to Date •  Oversees 61 Portfolios in Fund Complex	Retired Chairman of the Board and Chief Executive Officer of Kerr-McGee Corporation (diversified energy company); Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Director, ConocoPhillips (integrated international oil corporation); Integris Health (owner of various hospi­tals); BOK Financial (bank holding company); 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. Formerly, Director, Kimberly-Clark Corporation (con­sumer products) and the Federal Reserve System’s Kansas City Reserve Bank.
John E. Merow (74)2,4 •  Director: 1988 to Date •  Oversees 61 Portfolios in Fund Complex	Retired Chairman and Senior Partner, Sullivan & Cromwell LLP (law firm); Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Director, Commonwealth Industries, Inc. (manu­facturer of aluminum sheet products); Director and Treasurer, the Foreign Policy Association; Director Emeritus, Municipal Art Society of New York; Trustee and Secretary, the U.S. Council for International Business; Trustee and Vice Chairman, New York-Presbyterian Healthcare System, Inc.; Trustee, New York-Presbyterian Hospital; and Member of the American Law Institute and Council on Foreign Relations.
Betsy S. Michel (61)2,4 •  Director: 1988 to Date •  Oversees 61 Portfolios in Fund Complex	Attorney; Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Trustee, The Geraldine R. Dodge Foundation (charitable foundation) and World Learning, Inc. (international educational training). Formerly, Chairman of the Board of Trustees of St. George’s School (Newport, RI).
Leroy C. Richie (62)2,4 •  Director: 2000 to Date •  Oversees 60 Portfolios in Fund Complex	Chairman and Chief Executive Officer, Q Standards Worldwide, Inc. (library of technical standards); Director or Trustee of each of the investment companies of the Seligman Group of Funds† (except Seligman Cash Management Fund, Inc.); Director, Kerr-McGee Corporation (diversified energy company) and Infinity, Inc. (oil and gas services and exploration); Director and Chairman, Highland Park Michigan Economic Development Corp. Formerly, Trustee, New York University Law Center Foundation; Vice Chairman, Detroit Medical Center and the Detroit Economic Growth Corp.; Chairman and Chief Executive Officer, Capital Coating Technologies, Inc. (applied coating technologies); and Vice President and General Counsel, Automotive Legal Affairs, Chrysler Corporation.

___________ 

See footnotes on page 85.

82

Seligman Portfolios, Inc.

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below.

Independent Directors (continued)

Name, (Age), Position(s) held with Fundø	Principal Occupation(s) During Past Five Years, Directorships and Other Information
Robert L. Shafer (71)3,4 •  Director: 1988 to Date •  Oversees 61 Portfolios in Fund Complex	Retired Vice President, Pfizer Inc. (pharmaceuticals); Director or Trustee of each of the investment companies of the Seligman Group of Funds†. Formerly, Director, USLIFE Corporation (life insurance).
James N. Whitson (68)2,4 •  Director: 1993 to Date •  Oversees 61 Portfolios in Fund Complex	Retired Executive Vice President and Chief Operating Officer, Sammons Enterprises, Inc. (a diversified holding company); Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Director, C-SPAN (cable television network) and CommScope, Inc. (manufacturer of coaxial cable). Formerly, Director and Consultant, Sammons Enterprises, Inc.

Interested Directors and Principal Officers

Name, (Age), Position(s) held with Fundø	Principal Occupation(s) During Past Five Years, Directorships and Other Information
William C. Morris (65)*  1 •  Director and Chairman of the Board: 1988 to Date • Oversees 61 Portfolios in Fund Complex	Chairman, J. & W. Seligman & Co. Incorporated, Chairman of the Board and Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Chairman, Seligman Advisors, Inc., Seligman Services, Inc., and Carbo Ceramics Inc. (manufacturer of ceramic proppants for oil and gas industry); and Director, Seligman Data Corp. Formerly, Director, Kerr-McGee Corporation (diversified energy company) and Chief Executive Officer of each of the investment companies of the Seligman Group of Funds.
Brian T. Zino (51)*1 •  Director: 1993 to Date •  President: 1995 to Date •  Chief Executive Officer: 2002 to Date •  Oversees 61 Portfolios in Fund Complex	Director and President, J. & W. Seligman & Co. Incorporated; Chief Executive Officer, President and Director or Trustee of each of the investment companies of the Seligman Group of Funds†; Director, Seligman Advisors, Inc. and Seligman Services, Inc.; Chairman, Seligman Data Corp.; Member of the Board of Governors of the Investment Company Institute; and Chairman, ICI Mutual Insurance Company.
James M. Didden, Jr. (36) •  Vice President and Co-Portfolio Manager: Jan. 2004 to Date	Co-Portfolio Manager of High-Yield Bond Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President of Seligman High-Income Fund Series and Co-Portfolio Manager of its High- Yield Bond Series.
Neil T. Eigen (60) •  Vice President and Co-Portfolio Manager: 1998 to Date	Co-Portfolio Manager of Large-Cap Value Portfolio and Small-Cap Value Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President and Co-Portfolio Manager of Seligman Value Fund Series, Inc. Formerly, Senior Managing Director, Chief Investment Officer and Director of Equity Investing, Bear Stearns Asset Management.
Christopher J. Mahony (40) •  Vice President and Portfolio Manager: 2002 to Date	Portfolio Manager of Cash Management Portfolio and Investment Grade Fixed Income Portfolio and Co-Portfolio Manager of Income and Growth Portfolio; Senior Vice President, Investment Officer of J. & W. Seligman & Co. Incorporated; Vice President and Portfolio Manager of Seligman Cash Management Fund, Inc. and Seligman Investment Grade Fixed Income Fund, Inc. and Co-Portfolio Manager of Seligman Income and Growth Fund, Inc.; Vice President of Seligman High Income Fund Series and Portfolio Manager of its U.S. Government Securities Series. Formerly, Senior Portfolio Manager at Fort Washington Investment Advisors, Inc.

________________ 

See footnotes on page 85.

83

Seligman Portfolios, Inc.

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below.

Interested Directors and Principal Officers (continued)

Name, (Age), Position(s) held with Fundø	Principal Occupation(s) During Past Five Years, Directorships and Other Information
Richard M. Parower (37) •  Vice President and Co-Portfolio Manager: 2002 to Date	Co-Portfolio Manager of Global Technology Portfolio; Senior Vice President, Investment Officer, J. & W. Seligman & Co. Incorporated; Vice President of Seligman Global Fund Series, Inc. and Co-Portfolio Manager of its Global Technology Fund and Vice President and Co-Portfolio Manager of Seligman New Technologies Fund, Inc. and Seligman New Technologies Fund II, Inc. Formerly, Senior Analyst with Citibank Global Asset Management covering Global IT Services from June 1998 to April 2000; Senior Analyst with Montgomery Asset Management from September 1995 to June 1998.
Kendall C. Peterson (47) •  Vice President and Co-Portfolio Manager: 2001 to Date	Co-Portfolio Manager of High-Yield Bond Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President of Seligman High Income Fund Series and Co-Portfolio Manager of its High-Yield Bond Series. Formerly, Vice President and Portfolio Manager and Desk Head for High Yield Mutual Funds with Fortis, Inc. since 1999. From 1985 through 1999, served in a variety of capacities with The Prudential Insurance Company of America, the last six years of which he was Vice President and Portfolio Manager for High Yield Mutual Funds.
Richard S. Rosen (45) •  Vice President and Co-Portfolio Manager: 1998 to Date	Co-Portfolio Manager of Large-Cap Value Portfolio and Small-Cap Value Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President and Co-Portfolio Manager of Seligman Value Series, Inc. Formerly, Managing Director and Portfolio Manager, Bear Stearns Asset Management.
Frederick J. Ruvkun (46) •  Vice President and Portfolio Manager: 2002 to Date	Portfolio Manager of Frontier Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President and Portfolio Manager of Seligman Frontier Fund, Inc. Formerly, Vice President of Seligman Global Fund Series, Inc. and Co-Portfolio Manager of its Global Smaller Companies Fund; Co-Portfolio Manager of Seligman Portfolios’ Global Smaller Companies Portfolio, and Portfolio Manager at Bessemer Trust.
Richard R. Schmaltz (63) •  Vice President and Portfolio Manager: Dec. 2003 to Date	Portfolio Manager of Common Stock Portfolio and Co-Portfolio Manager of Income and Growth Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President and Portfolio Manager of Tri-Continental Corporation and Seligman Common Stock Fund, Inc.; Vice-President and Co-Portfolio Manager of Seligman Income and Growth Fund, Inc. Formerly, Director of Investments, J. & W. Seligman & Co. Incorporated.
Marion S. Schultheis (57) •  Vice President and Portfolio Manager: 1998 to Date	Portfolio Manager of Capital Portfolio and Large-Cap Growth Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated since May 1998; Vice President and Portfolio Manager of Seligman Capital Fund, Inc., and Seligman Growth Fund, Inc. Formerly, Vice President of Seligman Global Fund Series, Inc. and Co-Portfolio Manager of its Global Growth Fund and Co-Portfolio Manager of Seligman Portfolios’ Global Growth Portfolio; and Managing Director at Chancellor LGT from October 1997 until May 1998, and Senior Portfolio Manager at IDS Advisory Group Inc. from August 1987 until October 1997.
Steven A. Werber# (38) •  Vice President and Co-Portfolio Manager: 2000 to Date	Co-Portfolio Manager of Global Technology Portfolio; Managing Director, J. & W. Seligman & Co. Incorporated; Vice President of Seligman Global Fund Series, Inc. and Co-Portfolio Manager of its Global Technology Fund. Formerly, Senior Vice President, Investment Officer, J. & W. Seligman & Co. Incorporated; Analyst and Portfolio Manager at Fidelity Investments International from 1996 to 2000.
Paul H. Wick (40) •  Vice President and Portfolio Manager: 1994 to Date	Portfolio Manager of Communications and Information Portfolio; Director and Managing Director, J. & W. Seligman & Co. Incorporated since November 1997 and January 1995, respectively; Vice President and Portfolio Manager, Seligman Communications and Information Fund, Inc. He joined J. & W. Seligman & Co. Incorporated in 1987 as an Associate, Investment Research.

________________ 

See footnotes on page 85.

84

Seligman Portfolios, Inc.

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Portfolios is set forth below.

Interested Directors and Principal Officers

Name, (Age), Position(s) held with Fundø	Principal Occupation(s) During Past Five Years, Directorships and Other Information
Thomas G. Rose (46) •  Vice President: 2000 to Date	Senior Vice President, Finance, J. & W. Seligman & Co. Incorporated, Seligman Advisors, Inc., and Seligman Data Corp.; Vice President of each of the investment companies of the Seligman Group of Funds†, Seligman Services, Inc. and Seligman International, Inc. Formerly, Treasurer of each of the investment companies of the Seligman Group of Funds and Seligman Data Corp.
Lawrence P. Vogel (47) •  Vice President: 1992 to Date •  Treasurer: 2000 to Date	Senior Vice President and Treasurer, Investment Companies, J. & W. Seligman & Co. Incorporated; Vice President and Treasurer of each of the investment companies of the Seligman Group of Funds†; Treasurer, Seligman Data Corp. Formerly, Senior Vice President, Finance, J. & W. Seligman & Co. Incorporated, Seligman Advisors, Inc. and Seligman Data Corp.; Vice President, Seligman Services, Inc. and Vice President and Treasurer, Seligman International, Inc. and Treasurer, Seligman Henderson Co.
Frank J. Nasta (39) •  Secretary: 1994 to Date	Managing Director, General Counsel, Corporate Secretary, J. & W. Seligman & Co. Incorporated, Secretary of each of the investment companies of the Seligman Group of Funds†, Seligman Advisors, Inc., Seligman Services, Inc., Seligman International, Inc. and Seligman Data Corp. Formerly, Corporate Secretary, Seligman Henderson Co. and Senior Vice President, Law and Regulation, J. & W. Seligman & Co. Incorporated.

The Fund’s Statement of Additional Information (SAI) includes additional information about Fund directors and is available, without charge, upon request. You may call toll-free (800) 221-2450 in the US or collect (212) 682-7600 outside the US to request a copy of the SAI, to request other information about the Fund, or to make shareholder inquiries.

________________

ø	The address for each of the directors and officers is 100 Park Avenue, 8th floor, New York, NY 10017. Each Director serves for an indefinite term, until the election and qualification of a successor or until his or her earlier death, resignation or removal. Each officer is elected annually by the Board of Directors.
†	The Seligman Group of Funds consists of 23 registered investment companies.
*	Mr. Morris and Mr. Zino are considered “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended, by virtue of their positions with J. & W. Seligman & Co. Incorporated and its affiliates. # Effective February 27, 2004, Mr. Werber will be resigning his position.

Member:	1  Executive Committee
	2  Audit Committee
	3  Director Nominating Committee
	4  Board Operations Committee

Manager	General Distributor	General Counsel
J. & W. Seligman & Co.	Seligman Advisors, Inc.	Sullivan & Cromwell LLP
Incorporated	100 Park Avenue
100 Park Avenue	New York, New York 10017	Independent Auditors
New York, New York 10017		Ernest & Young LLP
	Subadviser
Custodians	(to Seligman Global Growth Portfolio,
JPMorgan Chase Bank	Seligman Global Smaller Companies
State Street Bank and	Portfolio, and Seligman International
Trust Company	Growth Portfolio)
	Wellington Management Company, LLP
	75 State Street
	Boston, MA 02109

85

SELIGMAN ADVISORS, INC.

an affiliate of

   

J. & W. SELIGMAN & CO.

INCORPORATED

ESTABLISHED 1864

100 Park Avenue, New York, NY 10017

www.seligman.com

This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of Capital Stock of Seligman Portfolios, Inc., which contains information about the management fees and other costs. Please read the prospectus carefully before investing or sending money.

ITEM 2. CODE OF ETHICS.

As of December 31, 2003, the registrant has adopted a code of ethics that applies to its principal executive and principal financial officers.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's board of directors has determined that Mr. James N. Whitson, a member of its audit committee, is an audit committee financial expert. Mr. Whitson is "independent" as such term is defined in Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant's principal accountant were as follows:

		2003		2002
Audit Fees	$	188,000	$	178,000
Audit-Related Fees		56,000		50,000
Tax Fees		31,800		30,300
All Other Fees		--		--

Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts for (i) limited review of the registrant's semi-annual financial statements; and (ii) review of quarterly compliance procedures regarding diversification requirements of the registrant. Tax fees include amounts related to tax compliance, tax planning, and tax advice.

(e) (1) The Audit Committee is required to preapprove audit and non-audit services performed for the registrant by the principal accountant in order to assure that the provision of such services does not impair the principal accountant's independence. The Audit Committee also is required to preapprove certain non-audit services performed by the registrant's principal accountant for the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and certain of the adviser's affiliates that provide services directly related to the operations and financial reporting of the registrant. Unless a type of service to be provided by the principal accountant has received preapproval, it will require specific preapproval by the Audit Committee.

The Audit Committee may delegate preapproval authority to one or more of its members. The member or members to whom such authority is delegated shall report any preapproval decisions to the Audit Committee at its next scheduled meeting.

Notwithstanding the foregoing, under certain circumstances, preapproval of non-audit services of a de minimis amount is not required.

(2) No services included in (b) – (d) above were approved pursuant to the waiver provisions of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-audit services rendered to the registrant, its investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $97,800 and $80,300, respectively.

(h) All non-audit services rendered in (g) above were pre-approved by the registrant's audit committee. Accordingly, the audit committee considered whether these services were compatible with maintaining the principal accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR

CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. [RESERVED]

ITEM 9. 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 registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 10. EXHIBITS.

(a)(1)	Code of Ethics for Principal Executive and Principal Financial Officers
(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)	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:	March 1, 2004

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 in the capacities and on the dates indicated.

By:	/s/ BRIAN T. ZINO
	Brian T. Zino
	President and Chief Executive Officer
Date:	March 1, 2004
By:	/s/ LAWRENCE P. VOGEL
	Lawrence P. Vogel
	Vice President, Treasurer and Chief Financial Officer
Date:	March 1, 2004

SELIGMAN PORTFOLIOS, INC.

EXHIBIT INDEX

(a)(1)	Code of Ethics for Principal Executive and Principal Financial Officers
(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.