Seligman

140 Years of Investment Experience

J. & W. Seligman & Co. Incorporated is a firm with a long tradition of investment expertise, offering a broad array of investment choices to help today’s investors seek their long-term financial goals.

Established in 1864, Seligman has a history of providing financial services marked not by fanfare, but rather by a quiet and firm adherence to financial prudence. While the world has changed dramatically in the 140 years since Seligman first opened its doors, the firm has continued to offer its clients high-quality investment solutions through changing times.

In the late 19th century, as the country grew, Seligman helped finance the westward expansion of the railroads, the construction of the Panama Canal, and the launching of urban transit systems. In the early 20th century, the firm helped fund the growing capital needs of new industries, including the nascent automobile and steel industries.

With the formation of Tri-Continental Corporation in 1929 — today, one of the nation’s largest diversified publicly-traded closed-end investment companies — Seligman began shifting its emphasis to investment management. In 1930, Seligman established what would be the first in an impressive lineup of mutual funds.

Seligman is proud of its distinctive past and of the traditional values that continue to shape the firm’s business decisions and investment judgment. While much has changed over the years, the firm’s commitment to providing prudent investment management that seeks to build wealth for clients over time is an enduring value that will continue to guide Seligman.

Table of Contents
To The Shareholders	1
Interview With Your Portfolio Manager	2
Benchmark Descriptions	4
Index and Average Returns	5
Performance Overview	6
Portfolios of Investments	15
Statements of Assets and Liabilities	17
Statements of Operations	19
Statements of Changes in Net Assets	20
Notes to Financial Statements	23
Financial Highlights	32
Report of Independent Auditors	41
Directors and Officers	42
Glossary of Financial Terms	46
For More Information	back cover

To The Shareholders

Your annual shareholder report for Seligman Time Horizon/Harvester Series, Inc. follows this letter. This report contains an interview with the Series’ Portfolio Manager, as well as the Series’ investment results and financial statements, including portfolios of investments.
For the year ended December 31, 2003, based on the net asset value of Class A shares, Seligman Time Horizon 30 Fund delivered a total return of 39.22%, Seligman Time Horizon 20 Fund delivered 37.96%, Seligman Time Horizon 10 Fund delivered 32.96%, and Seligman Harvester Fund delivered 21.44%.
As you are probably aware, the mutual fund industry has been dealing with the issue of market timing and other disruptive or illegal trading practices in mutual fund shares. J. & W. Seligman & Co. Incorporated, which manages a family of mutual funds, including your Fund, has conducted an extensive internal review regarding these matters, the results of which have been previously reported to shareholders. For more information, please visit www.seligman.com.*
We appreciate your continued support of Seligman Time Horizon/ Harvester Series, Inc. and look forward to serving your investment needs for many years to come.
By Order of the Board of Directors,
William C. Morris Chairman
Brian T. Zino President
February 24, 2004
*	The reference to Seligman’s website is an inactive textual reference and information contained in or otherwise accessible through Seligman’s website does not form a part of this report or the Fund’s prospectus.

1

Interview With Your Portfolio Manager

Charles W. Kadlec

Q:	How did Seligman Time Horizon/Harvester Series, Inc. perform for the fiscal year ended December 31, 2003?
A:	During this time, based on the net asset value of Class A shares, Seligman Time Horizon 30 Fund delivered a total return of 39.22%, Seligman Time Horizon 20 Fund delivered 37.96%, Seligman Time Horizon 10 Fund delivered 32.96%, and Seligman Harvester Fund delivered 21.44%.
Q:	What market conditions and events materially affected the Funds’ performances during the period?
A:	Equity markets around the world, after more than two years of declines, staged an impressive rally in 2003. US markets were driven higher by the fall of Iraq to coalition forces, better-than-expected economic growth, higher-than-expected corporate profits, extraordinary productivity gains, and continued low interest rates and low inflation.
	Continued strong productivity gains indicate that the capital spending boom of the last half of the 1990s continues to pay dividends. Such gains reduce unit labor costs even as real income rises and increases profit margins. Even during the economic slowdown, productivity continued to advance on average more than 3% a year. And during this past year, productivity surged. That allowed companies to pay higher wages even as they reduced unit labor costs, increased profits, and held the line on price increases.
	Investor willingness to take on additional risk within this improving economic environment was evidenced by the fact that smaller-company stocks were pursued to a greater degree than large-company stocks.
	Mid-cap stocks outperformed large-caps, but underperformed small-caps. An increased tolerance for risk was also seen in the fixed-income market. The highest-quality bonds, such as US Treasury securities, delivered the weakest returns, while lower-quality high-yield bonds had an outstanding year.
	Stimulative monetary policies throughout the world and the aggressively pro-growth fiscal policy in the US boosted economic activity around the world, and global equities posted strong returns. Global investors were more confident and risk-tolerant than they have been in years, and favored more cyclical and volatile investments. This was particularly evident in the strength of the emerging-markets rally that took place in 2003.
Q:	What investment strategies or techniques materially affected the Funds’ performances during the period?
A:	All the Funds’ underlying funds contributed positively to portfolio performance. Some, however, delivered outstanding returns.
	All the Funds in the Series benefited from their significant exposure to the technology sector. Seligman Time Horizon 30 Fund, however, had the greatest exposure, and so benefited the most, while Seligman Harvester Fund had the lowest exposure, and so benefited least from the impressive tech-market rally of 2003.
	Seligman Time Horizon 30, 20, and 10 Funds all have somewhat heavy weightings in small- and mid-cap stocks and so benefited from the outsized performances delivered in these areas. However, even Seligman Harvester Fund, the Series’ most

2

Interview With Your Portfolio Manager

Charles W. Kadlec

conservative offering, provides some exposure to mid-cap stocks.

All the Funds benefited from their exposure to international stock markets, but Seligman Time Horizon 30 Fund, with its relatively heavy exposure to global smaller companies and emerging markets, benefited to the greatest degree since these areas delivered particularly strong performances.

Fixed-income investments generally lagged equity investments in 2003. This equity-market outperformance benefited Seligman Time Horizon 30 and 20 Funds, which hold no fixed-income funds.

Most of Seligman Time Horizon 10 Fund’s exposure to fixed income is through the Seligman High-Yield Bond Series, which delivered double-digit returns that approached the returns seen in the equity markets.

Seligman Harvester Fund has the same exposure to high-yield as Seligman Time Horizon 10 Fund, but its fixed-income allocation is heavier overall. It is the only Fund in the Series to hold Seligman U.S. Government Securities Series, which delivered a weak, although positive, total return. It is important to note that Seligman U.S. Government Securities Series was the Series’ best-performing underlying fund in fiscal-year 2002, and Seligman Harvester Fund benefited from its exposure to this asset class last year.

The views and opinions expressed are those of the Portfolio Manager, 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.

Portfolio Management

Seligman Time Horizon/ Harvester Series is managed by Charles W. Kadlec. Mr. Kadlec has been a Managing Director of J. & W. Seligman & Co. Incorporated since January 1992 and Chief Investment Strategist for Seligman Advisors since April 1997. Mr. Kadlec is the architect of several investment strategies, chief among them Seligman Time Horizon Matrix and Seligman Harvester. Mr. Kadlec is assisted in the management of the Series by a team of investment professionals.

3

Benchmark Descriptions

Composite indices and averages were created by the Manager using widely recognized indices and established Lipper averages. These benchmarks were selected because the Manager believes they correlate, based on asset class, to the underlying Seligman Funds in which each Fund invests. The benchmarks use the same allocations to each asset class targeted by each Fund in the Seligman Time Horizon/Harvester Series. These benchmarks are used in the charts and tables that follow. All benchmarks exclude the effects of taxes and sales charges. The composite indices also exclude the effects of fees. Investors cannot invest directly in a composite index or average.

COMPOSITE INDICES

The Horizon 30 Composite Index consists of the following indices: 30% Russell 2000 Index (US Small-Cap Stocks), 30% Russell Midcap Index (US Midcap Stocks), 10% S&P 500 Composite Stock Index “S&P 500” (US Large-Cap Stocks), 15% Citigroup Extended Markets Index World Ex US (International Small-Company Stocks), 10% Morgan Stanley Capital International “MSCI” Emerging Markets Free Index (Emerging Market Stocks), 5% MSCI Europe Australasia Far East “EAFE” Index (International Large-Cap Stocks).

The Horizon 20 Composite Index consists of the following indices: 25% Russell 2000 Index, 25% Russell Midcap Index, 20% S&P 500, 10% Citigroup Extended Markets Index World Ex US, 10% MSCI Emerging Markets Free Index, 10% MSCI EAFE Index.

The Horizon 10 Composite Index consists of the following indices: 15% Russell 2000 Index, 25% Russell Midcap Index, 20% S&P 500, 5% Citigroup Extended Markets Index World Ex US, 5% MSCI Emerging Markets Free Index, 10% MSCI EAFE Index, 15% Citigroup High Yield Market Index (High-Yield Corporate Bonds), 5% Lehman Brothers Government/Credit Bond Index (Investment-Grade Corporate Bonds).

The Harvester Composite Index consists of the following indices: 10% Russell Midcap Index, 35% S&P 500, 15% MSCI EAFE Index, 15% Citigroup High Yield Market Index, 15% Lehman Brothers Government/ Credit Bond Index, 10% Lehman Brothers Government Bond Index (US Government Securities).

LIPPER COMPOSITE AVERAGES

The Lipper Composite Average for Time Horizon 30 Fund consists of the following Lipper Averages: 3% Small Cap Growth Funds Average, 13% Small Cap Value Funds Average, 16% Science & Technology Funds Average, 22% Mid Cap Growth Funds Average, 3% Large Cap Growth Funds Average, 3% Large Cap Value Funds Average, 10% Emerging Markets Fund Average, 25% Global Small Companies Funds Average, 5% International Funds Average.

The Lipper Composite Average for Time Horizon 20 Fund consists of the following Lipper Averages: 3% Small Cap Growth Funds Average, 12% Small Cap Value Funds Average, 10% Science & Technology Funds Average, 20% Mid Cap Growth Funds Average, 9% Large Cap Growth Funds Average, 9% Large Cap Value Funds Average, 10% Emerging Markets Funds Average, 17% Global Small Companies Funds Average, 10% International Funds Average.

The Lipper Composite Average for Time Horizon 10 Fund consists of the following Lipper Averages: 3% Small Cap Growth Funds Average, 6% Small Cap Value Funds Average, 10% Science & Technology Funds Average, 20% Mid Cap Growth Funds Average, 9% Large Cap Growth Funds Average, 9% Large Cap Value Funds Average, 5% Emerging Markets Funds Average, 8% Global Small Companies Funds Average, 10% International Funds Average, 15% High Current Yield Funds Average, 5% Corporate Debt Funds BBB-Rated Average.

The Lipper Composite Average for Harvester Fund consists of the following Lipper Averages: 10% Mid Cap Growth Funds Average, 11% Large Cap Growth Funds Average, 11% Large Cap Value Funds Average, 15% Large Cap Core Funds Average, 5% Global Funds Average, 12% International Funds Average, 15% High Current Yield Funds Average, 15% Corporate Debt Funds BBB-Rated Average, 10% US Government Bond Funds Average.

4

Index and Average Returns

For Periods Ended December 31, 2003	Six     Months*			One     Year			Since Inception 1/10/00**
Russell 2000 Index		24.92	%		47.25	%		4.03	%
Russell Midcap Index		21.30			40.06			4.57
S&P 500		15.14			28.67			(5.19	)
Citigroup Extended Markets Index World Ex US		30.79			53.73			1.80
Citigroup High Yield Market Index		9.05			30.62			6.34	†
MSCI EAFE Index		26.69			39.17			(4.72	)
MSCI EMF Index		34.57			56.28			(1.04	)
Lehman Brothers Government Bond Index		(1.23	)		2.36			8.60
Lehman Brothers Government/Credit Bond Index		(0.53	)		4.67			9.07
Lipper Small Cap Growth Funds Average		22.93			44.77			(3.25	)ø
Lipper Small Cap Value Funds Average		24.12			42.29			15.47	ø
Lipper Science & Technology Funds Average		24.77			55.75			(19.62	)ø
Lipper Mid Cap Growth Funds Average		17.23			35.93			(7.11	)ø
Lipper Large Cap Growth Funds Average		12.89			26.75			(11.52	)ø
Lipper Large Cap Value Funds Average		15.66			28.44			1.20	ø
Lipper Large Cap Core Funds Average		13.71			25.53			(6.48	)ø
Lipper Emerging Markets Funds Average		34.51			55.24			(0.06	)ø
Lipper Global Small Companies Funds Average		26.60			46.05			(1.56	)ø
Lipper Global Funds Average		19.69			32.06			(4.09	)ø
Lipper International Funds Average		23.95			34.75			(5.65	)ø
Lipper High Current Yield Funds Average		8.39			24.36			3.87	ø
Lipper General US Government Bond Funds Average		(1.11	)		1.39			7.52	ø
Lipper Corporate Debt BBB-Rated Funds Average		1.38			8.61			8.09	ø

*	Not annualized.
**	Annualized.
†	From December 31, 1999.
ø	From January 13, 2000.

5

Performance Overview

Seligman Time Horizon 30 Fund

This chart compares a $10,000 hypothetical investment made in Seligman Time Horizon 30 Fund Class A shares since the commencement of operations on January 10, 2000, through December 31, 2003, to $10,000 investments made in the Horizon 30 Composite Index and the S&P 500 for the same period. The results for Seligman Time Horizon 30 Fund Class A shares were determined with and without the initial 4.75% maximum sales charge, and assume that all distributions within the period are invested in additional shares. The performances of Seligman Time Horizon 30 Fund Class B, Class C, and Class D shares are not shown in this chart but are included in the table on page 7. This chart does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. It is important to keep in mind that the Horizon 30 Composite Index and the S&P 500 exclude the effects of taxes, fees and sales charges.

The performances of Class B, Class C, and Class D shares will differ from the performance shown for Class A shares, based on the differences in sales charges and fees paid by shareholders.

See footnotes on page 14.

6

Performance Overview

Seligman Time Horizon 30 Fund

Investment Results

Total Returns
For Periods Ended December 31, 2003
				Average Annual
	Six Months*			One Year			Since Inception†
Class A**
With Sales Charge		16.63	%		32.71	%		(5.53	)%
Without Sales Charge		22.41			39.22			(4.36	)
Class B**
With CDSC***		17.08			33.60			(5.60	)
Without CDSC		22.08			38.60			(4.85	)
Class C**
With Sales Charge and CDSC		19.75			36.23			(6.72	)
Without Sales Charge and CDSC		22.08			38.60			(6.47	)
Class D**
With 1% CDSC		21.08			37.60			n/a
Without CDSC		22.08			38.60			(6.56	)
Benchmarks
Horizon 30 Composite Index(1)		24.79			44.71			2.30
Horizon 30 Lipper Composite Average(1)		23.73			44.10			(2.63	)
S&P 500(2)		15.14			28.67			(5.19	)

Net Asset Value Per Share
	12/31/03		6/30/03		12/31/02
Class A	$	5.68	$	4.64	$	4.08
Class B		5.53		4.53		3.99
Class C		5.53		4.53		3.99
Class D		5.53		4.53		3.99

See footnotes on page 14.

7

Performance Overview

Seligman Time Horizon 20 Fund

This chart compares a $10,000 hypothetical investment made in Seligman Time Horizon 20 Fund Class A shares since the commencement of operations on January 10, 2000, through December 31, 2003, to $10,000 investments made in the Horizon 20 Composite Index and the S&P 500 for the same period. The results for Seligman Time Horizon 20 Fund Class A shares were determined with and without the initial 4.75% maximum sales charge, and assume that all distributions within the period are invested in additional shares. The performances of Seligman Time Horizon 20 Fund Class B, Class C, and Class D shares are not shown in this chart but are included in the table on page 9. This chart does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. It is important to keep in mind that the Horizon 20 Composite Index and the S&P 500 exclude the effects of taxes, fees and sales charges.

The performances of Class B, Class C, and Class D shares will differ from the performance shown for Class A shares, based on the differences in sales charges and fees paid by shareholders.

See footnotes on page 14.

8

Performance Overview

Seligman Time Horizon 20 Fund

Investment Results

Total Returns
For Periods Ended December 31, 2003
				Average Annual
	Six Months*			One Year			Since Inception†
Class A**
With Sales Charge		15.95	%		31.55	%		(5.56	)%
Without Sales Charge		21.67			37.96			(4.39	)
Class B**
With CDSC***		16.46			32.25			(8.69	)
Without CDSC		21.46			37.25			(7.99	)
Class C**
With Sales Charge and CDSC		19.14			34.90			(5.86	)
Without Sales Charge and CDSC		21.46			37.25			(5.63	)
Class D**
With 1% CDSC		20.46			36.25			n/a
Without CDSC		21.46			37.25			(5.74	)
Benchmarks
Horizon 20 Composite Index(1)		23.79			42.48			1.00
Horizon 20 Lipper Composite Average(1)		22.44			40.97			(2.32	)
S&P 500(2)		15.14			28.67			(5.19	)

Net Asset Value Per Share
	12/31/03		6/30/03		12/31/02
Class A	$	5.67	$	4.64	$	4.11
Class B		5.49		4.53		4.00
Class C		5.49		4.53		4.00
Class D		5.49		4.53		4.00

See footnotes on page 14.

9

Performance Overview

Seligman Time Horizon 10 Fund

This chart compares a $10,000 hypothetical investment made in Seligman Time Horizon 10 Fund Class A shares since the commencement of operations on January 10, 2000, through December 31, 2003, to $10,000 investments made in the Horizon 10 Composite Index and the S&P 500 for the same period. The results for Seligman Time Horizon 10 Fund Class A shares were determined with and without the initial 4.75% maximum sales charge, and assume that all distributions within the period are invested in additional shares. The performances of Seligman Time Horizon 10 Fund Class B, Class C, and Class D shares are not shown in this chart but are included in the table on page 11. This chart does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. It is important to keep in mind that the Horizon 10 Composite Index and the S&P 500 exclude the effects of taxes, fees and sales charges.

The performances of Class B, Class C, and Class D shares will differ from the performance shown for Class A shares, based on the differences in sales charges and fees paid by shareholders.

See footnotes on page 14.

10

Performance Overview

Seligman Time Horizon 10 Fund

Investment Results

Total Returns
For Periods Ended December 31, 2003
				Average Annual
	Six Months*			One Year			Since Inception†
Class A**
With Sales Charge		12.32	%		26.61	%		(5.32	)%
Without Sales Charge		18.03			32.96			(4.14	)
Class B**
With CDSC***		12.58			26.71			(6.31	)
Without CDSC		17.58			31.71			(5.62	)
Class C**
With Sales Charge and CDSC		15.34			29.47			(7.39	)
Without Sales Charge and CDSC		17.58			31.71			(7.14	)
Class D**
With 1% CDSC		16.58			30.71			n/a
Without CDSC		17.58			31.71			(5.90	)
Benchmarks
Horizon 10 Composite Index(1)		19.36			37.08			2.14
Horizon 10 Lipper Composite Average(1)		18.20			35.61			(2.11	)
S&P 500(2)		15.14			28.67			(5.19	)

Net Asset Value Per Share
	12/31/03			6/30/03			12/31/02
Class A		$	5.53		$	4.72		$	4.19
Class B			5.47			4.66			4.16
Class C			5.47			4.66			4.16
Class D			5.47			4.66			4.16

See footnotes on page 14.

11

Performance Overview

Seligman Harvester Fund

This chart compares a $10,000 hypothetical investment made in Seligman Harvester Fund Class A shares since the commencement of operations on January 10, 2000, through December 31, 2003, to $10,000 investments made in the Harvester Composite Index and the S&P 500 for the same period. The results for Seligman Harvester Fund Class A shares were determined with and without the initial 4.75% maximum sales charge, and assume that all distributions within the period are invested in additional shares. The performances of Seligman Harvester Fund Class B, Class C, and Class D shares are not shown in this chart but are included in the table on page 13. This chart does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. It is important to keep in mind that the Harvester Composite Index and the S&P 500 exclude the effects of taxes, fees and sales charges.

The performances of Class B, Class C, and Class D shares will differ from the performance shown for Class A shares, based on the differences in sales charges and fees paid by shareholders.

See footnotes on page 14.

12

Performance Overview

Seligman Harvester Fund

Investment Results
Total Returns
For Periods Ended December 31, 2003
				Average Annual
	Six Months*			One Year			Since Inception†
Class A**
With Sales Charge		6.40	%		15.77	%		(5.96	)%
Without Sales Charge		11.69			21.44			(4.79	)
Class B**
With CDSC***		6.28			15.55			(6.51	)
Without CDSC		11.28			20.55			(5.85	)
Class C**
With Sales Charge and CDSC		9.10			18.44			(5.91	)
Without Sales Charge and CDSC		11.28			20.55			(5.68	)
Class D**
With 1% CDSC		10.28			19.55			n/a
Without CDSC		11.28			20.55			(6.09	)
Benchmarks
Harvester Composite Index(1)		12.59			24.45			0.66
Harvester Lipper Composite Average(1)		10.95			22.33			(1.48	)
S&P 500(2)		15.14			28.67			(5.19	)

Net Asset Value Per Share
	12/31/03			6/30/03			12/31/02
Class A		$	5.13		$	4.63		$	4.29
Class B			5.13			4.63			4.29
Class C			5.13			4.63			4.29
Class D			5.13			4.63			4.29

Dividend, Capital Loss, and Yield Information Per Share
For the Periods Ended December 31, 2003
Dividends Paidø		Capital Loss				SEC Yield‡‡
$	0.069	Realized	$	(0.116	)		1.29	%
	0.035	Unrealized		(0.357	)‡		0.61
	0.035						0.61
	0.035						0.61

See footnotes on page 14.

13

Performance Overview

The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Performance data quoted does not reflect the deduction of taxes that an investor may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results.

J. & W. Seligman & Co. Incorporated is currently waiving its investment management fee and reimbursing a portion of the Fund’s expenses, other than distribution and service fees, that exceed 0.50% per annum of the Fund’s average daily net assets pursuant to a contractual undertaking. Absent such waivers and reimbursements, the Fund’s returns would have been lower.

*	Returns for periods of less than one year are not annualized.
**	Return figures reflect any change in price per share and assume the investment of dividend and capital gain distributions. Return figures for Class A shares are calculated with and without the effect of the initial 4.75% maximum sales charge. Returns for Class B shares are calculated with and without the effect of the maximum 5% contingent deferred sales charge (“CDSC”), charged on redemptions made within one year of the date of purchase, declining to 1% in the sixth year and 0% thereafter. Returns for Class C shares are calculated with and without the effect of the initial 1% maximum sales charge and the 1% CDSC, charged on redemptions made within 18 months of the date of purchase. Returns for Class D shares are calculated with and without the effect of the 1% CDSC, charged on redemptions made within one year of the date of purchase.
***	The CDSC is 5% for periods of one year or less and 3% since inception.
†	Commencement of investment operations for Class A shares was 1/10/00. Class A share returns were computed from the commencement of investment operations. Class B, C, and D shares were offered to the public on 1/10/00, but were first issued at the dates indicated below. Total returns for Class B, C, and D shares of the Fund have been computed from the commencement of investment operations and incorporate the total return of Class A shares of the Fund from the commencement of investment operations through the initial issuance date of each of the other classes of shares, adjusted to reflect the higher expenses associated with the Administration, Shareholder Services and Distribution Plan for those classes that would have been incurred had they first been issued on the commencement of investment operations date. The total returns of Class B, C, and D shares from their individual initial issuance dates would be different, and may be lower, than those shown. See the Financial Highlights tables beginning on page 32 for total returns for each class of shares from their individual initial issuance dates.

	Class B		Class C		Class D
Time Horizon 30 Fund		4/24/00		2/8/00		2/14/00
Time Horizon 20 Fund		3/21/00		1/18/00		1/21/00
Time Horizon 10 Fund		2/18/00		3/6/00		2/15/00
Harvester Fund		2/17/00		1/18/00		2/29/00

ø	Represents per share amount paid or declared for the year ended December 31, 2003.
(1)	See page 4 for benchmark descriptions.
(2)	The S&P 500 is an unmanaged benchmark that assumes the investment of dividends and excludes the effect of taxes, fees and sales charges. Investors cannot invest directly in an index.
‡	Represents the per share amount of net unrealized depreciation of portfolio securities as of December 31, 2003.
‡‡	Current yield, representing the annualized yield for the 30-day period ended December 31, 2003, has been computed in accordance with SEC regulations and will vary. During the period, the Manager waived its fees and reimbursed other expenses. Without these waivers/reimbursements, the yields would be as follows:

Class A	Class B	Class C	Class D
1.25%	0.58%	0.58%	0.58%

14

Portfolios of Investments

December 31, 2003

Seligman Time Horizon 30 Fund

	Shares		Value
Domestic Equity Funds 60.9%
Seligman Capital Fund*		87,978	$	1,553,691
Seligman Communications and Information Fund*		48,982		1,126,096
Seligman Frontier Fund*		17,540		209,077
Seligman Growth Fund*		57,516		211,084
Seligman Large-Cap Value Fund		21,321		214,702
Seligman Small-Cap Value Fund*		65,825		941,298
				4,255,948
Global Equity Funds 41.4%
Seligman Emerging Markets Fund*		104,287		738,352
Seligman Global Smaller Companies Fund*		143,025		1,793,533
Seligman International Growth Fund*		33,928		358,280
				2,890,165
Total Investments (Cost $6,980,697) 102.3%				7,146,113
Other Assets Less Liabilities (2.3)%				(160,525	)
Net Assets 100.0%			$	6,985,588

Seligman Time Horizon 20 Fund

	Shares		Value
Domestic Equity Funds 61.3%
Seligman Capital Fund*		160,159	$	2,828,408
Seligman Communications and Information Fund*		61,510		1,414,115
Seligman Frontier Fund*		35,494		423,088
Seligman Growth Fund*		346,312		1,270,965
Seligman Large-Cap Value Fund		126,956		1,278,447
Seligman Small-Cap Value Fund*		118,039		1,687,958
				8,902,981
Global Equity Funds 36.3%
Seligman Emerging Markets Fund*		203,038		1,437,509
Seligman Global Smaller Companies Fund*		192,412		2,412,847
Seligman International Growth Fund*		134,188		1,417,025
				5,267,381
Total Investments (Cost $14,842,220) 97.6%				14,170,362
Other Assets Less Liabilities 2.4%				348,502
Net Assets 100.0%			$	14,518,864

*  Non-income producing security; security has paid or may pay capital gain distributions.

See Notes to Financial Statements.

15

Portfolios of Investments

December 31, 2003

Seligman Time Horizon 10 Fund

	Shares		Value
Domestic Equity Funds 55.0%
Seligman Capital Fund*		179,392	$	3,168,063
Seligman Communications and Information Fund*		68,316		1,570,585
Seligman Frontier Fund*		39,333		468,849
Seligman Growth Fund*		383,903		1,408,924
Seligman Large-Cap Value Fund		140,986		1,419,729
Seligman Small-Cap Value Fund*		69,893		999,470
				9,035,620
Global Equity Funds 23.3%
Seligman Emerging Markets Fund*		129,719		918,411
Seligman Global Smaller Companies Fund*		106,721		1,338,281
Seligman International Growth Fund*		149,466		1,578,361
				3,835,053
Fixed-Income Funds 18.9%
Seligman High-Yield Bond Series		661,279		2,347,540
Seligman Investment Grade Fixed Income Fund		104,526		764,087
				3,111,627
Total Investments (Cost $16,842,402) 97.2%				15,982,300
Other Assets Less Liabilities 2.8%				454,289
Net Assets 100.0%			$	16,436,589

Seligman Harvester Fund

	Shares		Value
Domestic Equity Funds 44.0%
Seligman Capital Fund*		89,894	$	1,587,528
Seligman Common Stock Fund		162,272		1,690,874
Seligman Growth Fund*		462,938		1,698,982
Seligman Large-Cap Value Fund		174,783		1,760,065
				6,737,449
Global Equity Funds 17.8%
Seligman Global Growth Fund*		119,986		801,507
Seligman International Growth Fund*		182,005		1,921,973
				2,723,480
Fixed-Income Funds 37.9%
Seligman High-Yield Bond Series		616,702		2,189,292
Seligman Investment Grade Fixed Income Fund		298,569		2,182,539
Seligman U.S. Government Securities Series		197,343		1,426,790
				5,798,621
Total Investments (Cost $16,323,426) 99.7%				15,259,550
Other Assets Less Liabilities 0.3%				53,326
Net Assets 100.0%			$	15,312,876

*  Non-income producing security; security has paid or may pay capital gain distributions.

See Notes to Financial Statements.

16

Statements of Assets and Liabilities

December 31, 2003

	Seligman Time Horizon 30 Fund			Seligman Time Horizon 20 Fund			Seligman Time Horizon 10 Fund			Seligman Harvester Fund
Assets
Investments in Underlying Funds, at value (see portfolios of investments)	$	7,146,113		$	14,170,362		$	15,982,300		$	15,259,550
Cash		56,728			317,038			384,814			72,721
Prepaid registration fees		21,401			22,063			21,876			21,226
Receivable for Capital Stock sold		12,745			50,341			61,378			28,477
Dividends receivable		—			—			7,488			10,293
Receivable from Manager		17,752			13,481			13,765			9,627
Other		180			407			496			614
Total Assets:		7,254,919			14,573,692			16,472,117			15,402,508
Liabilities:
Payable for investments purchased		—			9,180			—			—
Dividends payable		—			140			254			10,979
Payable for Capital Stock repurchased		251,111			13,801			—			45,791
Distribution and service fees payable		3,007			6,541			8,459			8,496
Accrued expenses and other		15,213			25,166			26,815			24,366
Total Liabilities		269,331			54,828			35,528			89,632
Net Assets	$	6,985,588		$	14,518,864		$	16,436,589		$	15,312,876
Composition of Net Assets:
Capital Stock, at $0.001 par value:
Class A	$	476		$	821		$	798		$	601
Class B		269			537			754			805
Class C		377			1,037			1,190			1,298
Class D		128			222			254			279
Additional paid-in capital		6,988,360			15,674,637			20,055,895			17,929,791
Undistributed (dividends in excess of) net investment income		(1,556	)		(1,572	)		(1,583	)		11,806
Accumulated net realized loss		(167,882	)		(484,960	)		(2,760,617	)		(1,567,828	)
Net unrealized appreciation (depreciation) of investments		165,416			(671,858	)		(860,102	)		(1,063,876	)
Net Assets	$	6,985,588		$	14,518,864		$	16,436,589		$	15,312,876
Net Assets:
Class A	$	2,703,009		$	4,657,497		$	4,414,532		$	3,084,911
Class B		1,489,859			2,948,508			4,123,195			4,132,667
Class C		2,085,873			5,695,498			6,510,363			6,664,699
Class D		706,847			1,217,361			1,388,499			1,430,599
(Continued on page 18.)

17

Statements of Assets and Liabilities

December 31, 2003

	Seligman Time Horizon 30 Fund		Seligman Time Horizon 20 Fund		Seligman Time Horizon 10 Fund		Seligman Harvester Fund
Shares of Capital Stock Outstanding:
Class A		475,581		820,829		797,801		600,762
Class B		269,440		536,822		753,651		804,816
Class C		377,236		1,036,971		1,189,971		1,297,917
Class D		127,831		221,641		253,798		278,603
Net Asset Value per Share:
Class A		$5.68		$5.67		$5.53		$5.13
Class B		$5.53		$5.49		$5.47		$5.13
Class C		$5.53		$5.49		$5.47		$5.13
Class D		$5.53		$5.49		$5.47		$5.13

See Notes to Financial Statements.

18

Statements of Operations

For the Year Ended December 31, 2003

		Seligman Time Horizon 30 Fund			Seligman Time Horizon 20 Fund			Seligman Time Horizon 10 Fund			Seligman Harvester Fund
Investment Income:
Dividends from Underlying Funds	$	1,720		$	10,084		$	184,760		$	276,914
Expenses:
Management fees		5,375			11,361			13,391			13,686
Distribution and service fees		26,074			60,441			77,254			84,110
Registration		49,483			52,000			52,904			52,641
Custody and related services		3,420			2,130			4,845			2,701
Shareholder account services		3,055			6,835			7,694			8,982
Audit and legal fees		13,123			12,607			21,085			13,523
Directors’ fees and expenses		5,632			5,774			5,821			5,829
Shareholder reports and communications		2,507			—			—			979
Miscellaneous		2,454			1,647			2,932			745
Total Expenses Before Waiver/Reimbursement		111,123			152,795			185,926			183,196
Waiver/reimbursement of expenses (Note 4)		(58,171	)		(35,551	)		(41,716	)		(30,661	)
Total Expenses After Waiver/Reimbursement		52,952			117,244			144,210			152,535
Net Investment Income (Loss)		(51,232	)		(107,160	)		40,550			124,379
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments		(167,882	)		(48,397	)		(1,716,123	)		(343,438	)
Capital gain distribution from Underlying Funds		—			—			9,127			26,595
Net change in unrealized depreciation of investments		2,055,324			3,932,438			5,408,198			2,827,868
Net Gain on Investments		1,887,442			3,884,041			3,701,202			2,511,025
Increase in Net Assets from Operations	$	1,836,210		$	3,776,881		$	3,741,752		$	2,635,404

See Notes to Financial Statements.

19

Statements of Changes in Net Assets

	Seligman Time Horizon 30 Fund						Seligman Time Horizon 20 Fund
	Year Ended December 31,						Year Ended December 31,
	2003			2002			2003			2002
Operations:
Net investment loss	$	(51,232	)	$	(43,870	)	$	(107,160	)	$	(111,080	)
Net realized loss on investments and distributions from underlying funds		(167,882	)		—			(48,397	)		(436,563	)
Net change in unrealized depreciation of investments		2,055,324			(1,350,010	)		3,932,438			(3,033,261	)
Increase (decrease) in Net Assets from Operations		1,836,210			(1,393,880	)		3,776,881			(3,580,904	)
Capital Share Transactions:
Net proceeds from sales of shares		1,570,854			1,609,021			2,973,683			3,806,150
Exchanged from associated funds		453,916			631,899			845,465			577,604
Total		2,024,770			2,240,920			3,819,148			4,383,754
Cost of shares repurchased		(835,559	)		(714,537	)		(2,401,227	)		(1,964,612	)
Exchanged into associated funds		(381,492	)		(213,397	)		(255,549	)		(637,309	)
Total		(1,217,051	)		(927,934	)		(2,656,776	)		(2,601,921	)
Increase in Net Assets from Capital Share Transactions		807,719			1,312,986			1,162,372			1,781,833
Increase (decrease) in Net Assets		2,643,929			(80,894	)		4,939,253			(1,799,071	)
Net Assets:
Beginning of year		4,341,659			4,422,553			9,579,611			11,378,682
End of Year*	$	6,985,588		$	4,341,659		$	14,518,864		$	9,579,611

*	Including undistributed (net of dividends in excess of) net investment income as follows	$	(1,556	)	$	(1,245	)	$	(1,572	)	$	(1,259	)
See Notes to Financial Statements.

20

Statements of Changes in Net Assets

		Seligman Time Horizon 10 Fund						Seligman Harvester Fund
		Year Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002
Operations:
Net investment income		$	40,550		$	62,169		$	124,379		$	166,331
Net realized loss on investments and distributions from underlying funds			(1,706,996	)		(1,082,356	)		(316,843	)		(838,378	)
Net change in unrealized depreciation of investments			5,408,198			(3,408,643	)		2,827,868			(1,963,668	)
Increase (decrease) in Net Assets from Operations			3,741,752			(4,428,830	)		2,635,404			(2,635,715	)
Distributions to Shareholders:
Net investment income:
	Class A		(29,507	)		(29,176	)		(39,597	)		(40,463	)
	Class B		(6,747	)		(9,149	)		(29,963	)		(25,232	)
	Class C		(10,716	)		(20,214	)		(51,067	)		(87,522	)
	Class D		(2,245	)		(3,630	)		(10,159	)		(13,114	)
Total			(49,215	)		(62,169	)		(130,786	)		(166,331	)
Dividends in excess of net investment income:
	Class A		—			(36	)		—			(19,751	)
	Class B		—			(43	)		—			(23,990	)
	Class C		—			(89	)		—			(71,004	)
	Class D		—			(14	)		—			(11,155	)
Total			—			(182	)		—			(125,900	)
Return of capital:
	Class A		—			(8,007	)		—			(9,643	)
	Class B		—			(9,546	)		—			(12,896	)
	Class C		—			(19,926	)		—			(28,781	)
	Class D		—			(3,050	)		—			(5,084	)
Total			—			(40,529	)		—			(56,404	)
Decrease in Net Assets from Distributions			(49,215	)		(102,880	)		(130,786	)		(348,635	)
(Continued on page 22.)

21

Statements of Changes in Net Assets

	Seligman Time Horizon 10 Fund						Seligman Harvester Fund
	Year Ended December 31,						Year Ended December 31,
	2003			2002			2003			2002
Capital Share Transactions:
Net proceeds from sales of shares		2,801,522			3,686,916			1,695,882			4,068,593
Exchanged from associated funds		1,121,482			1,950,517			2,720,233			1,732,043
Investment of dividends		46,590			94,676			100,618			309,077
Total		3,969,594			5,732,109			4,516,733			6,109,713
Cost of shares repurchased		(3,905,659	)		(2,979,737	)		(3,266,536	)		(3,283,643	)
Exchanged into associated funds		(540,936	)		(1,425,135	)		(927,825	)		(937,375	)
Total		(4,446,595	)		(4,404,872	)		(4,194,361	)		(4,221,018	)
Increase (decrease) in Net Assets from Capital Share Transactions		(477,001	)		1,327,237			322,372			1,888,695
Increase (decrease) in Net Assets		3,215,536			(3,204,473	)		2,826,990			(1,095,655	)
Net Assets:
Beginning of year		13,221,053			16,425,526			12,485,886			13,581,541
End of Year*	$	16,436,589		$	13,221,053		$	15,312,876		$	12,485,886

*	Including undistributed (net of dividends in excess of) net investment income as follows	$	(1,583	)	$	(1,228	)	$	11,806	$	(1,264	)
See Notes to Financial Statements.

22

Notes to Financial Statements

1.	Multiple Classes of Shares — Seligman Time Horizon/Harvester Series, Inc. (the “Series”) consists of four separate funds: Seligman Time Horizon 30 Fund (“Time Horizon 30 Fund”), Seligman Time Horizon 20 Fund (“Time Horizon 20 Fund”), Seligman Time Horizon 10 Fund (“Time Horizon 10 Fund”), and Seligman Harvester Fund (“Harvester Fund”). Each Fund invests in a combination of Class A shares of other Seligman mutual funds (the “Underlying Funds”).
	Each Fund of the Series offers four classes of shares — Class A shares, Class B shares, Class C shares, and Class D shares. Class A shares are sold with an initial sales charge of up to 4.75%. Class A shares purchased in an amount of $1,000,000 or more are sold without an initial sales charge but are subject to a contingent deferred sales charge (“CDSC”) of 1% on redemptions within 18 months of purchase.
	Class B shares are sold without an initial sales charge but are subject to a distribution fee of 0.75% on an annual basis, and a CDSC, if applicable, of 5% on redemptions in the first year of purchase, declining to 1% in the sixth year and 0% thereafter. Class B shares will automatically convert to Class A shares on the last day of the month that precedes the eighth anniversary of their date of purchase.
	Class C shares are sold primarily with an initial sales charge of up to 1% and a CDSC, if applicable, of 1% imposed on redemptions made within 18 months of purchase. Effective November 25, 2003, shares purchased through certain financial intermediaries may be bought without an initial sales charge and with a 1% CDSC on redemptions made within 12 months of purchase. All Class C shares are subject to a distribution fee of up to 0.75% on an annual basis.
	Class D shares are sold without an initial sales charge but are subject to a distribution fee of up to 0.75% on an annual basis, and a CDSC, if applicable, of 1% imposed on redemptions made within one year of purchase.
	The four classes of shares for each Fund 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 distribution and certain other class-specific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
2.	Significant Accounting Policies — The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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 Series:
	a.	Security Valuation — Underlying Funds owned by a Fund are valued at their respective net asset values. US Government securities and short-term obligations, with more than 60 days remaining to maturity, are valued at current market values. Short-term holdings maturing in 60 days or less are generally valued at amortized cost.
	b.	Federal Taxes — Each Fund in the Series has elected to be taxed as a regulated investment company and intends to distribute substantially all taxable net income and net gain realized.
	c.	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. Dividends receivable and payable are recorded on ex-dividend dates. Interest income is recorded on an accrual basis.
	d.	Multiple Class Allocations — Each Fund’s income, expenses (other than class-specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares of that Fund based upon the relative value of the shares of each class. Class-specific expenses, which include

23

Notes to Financial Statements

		distribution and service fees and any other items that are specifically attributed to a particular class, are charged directly to such class. For the year ended December 31, 2003, distribution and service fees were the only class-specific expenses.
	e.	Distributions to Shareholders — The treatment for financial statement purposes of distributions made to shareholders during the year from net investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense, 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 reclassifications will have no effect on net assets, results of operations, or net asset values per share of any Fund of the Series.
3.	Purchases and Sales of Securities — Purchases and sales of portfolio securities (underlying funds), excluding short-term investments, for the year ended December 31, 2003, were as follows:

Fund	Purchases		Sales		Fund	Purchases		Sales
Time Horizon 30 Fund	$	1,121,641		$  91,977	Time Horizon 10 Fund	$	998,263	$	1,882,446
Time Horizon 20 Fund		866,305		174,132	Harvester Fund		1,318,880		768,762

At December 31, 2003, the cost of investments for federal income tax purposes, and the tax basis gross unrealized appreciation and depreciation of portfolio securities were as follows:

Fund	Cost		Total Unrealized Appreciation			Total Unrealized Depreciation
Time Horizon 30 Fund	$	6,980,697		$	487,949		$	322,533
Time Horizon 20 Fund		14,855,270			1,003,223			1,688,131
Time Horizon 10 Fund		17,134,008			641,807			1,793,515
Harvester Fund		16,754,942			79,920			1,575,312

The tax basis cost was greater than the cost for financial reporting purposes primarily due to the tax deferral of losses on wash sales of $13,050, $291,606, and $431,516 for Time Horizon 20 Fund, Time Horizon 10 Fund, and Harvester Fund, respectively.

4.

Management Fee, Distribution Services, and Other Transactions — J. & W. Seligman & Co.  Incorporated (the “Manager”) manages the affairs of the Series and provides the necessary personnel and facilities. Compensation of all officers of the Series, all directors of the Series who are employees of the Manager, and all personnel of the Series and the Manager is paid by the Manager. The Manager receives a fee, calculated daily and payable monthly, equal to 0.10% per annum of each Fund’s average daily net assets. The Manager has contractually undertaken to waive its fee and reimburse each Fund’s expenses, other than distribution and service fees, that exceed 0.50% per annum of the Fund’s average daily net assets through December 31, 2003 and that exceed 0.75% per annum of average daily net assets from January 1, 2004 through December 31, 2010.

Seligman Advisors, Inc. (the “Distributor”), agent for the distribution of the Series’ shares and an affiliate of the Manager, received the following concessions for sales of Class A shares after commissions were paid to dealers for sales of Class A and Class C shares:

24

Notes to Financial Statements

Fund	Distributor Concessions			Dealer Commissions			Fund	Distributor Concessions			Dealer Commissions
Time Horizon 30 Fund		$	3,120		$	27,347	Time Horizon 10 Fund		$	3,413		$36,152
Time Horizon 20 Fund			3,575			38,415	Harvester Fund			1,657		21,841

Each Fund of the Series has an Administration, Shareholder Services and Distribution Plan (the “Plan”) with respect to distribution of its shares. Under the Plan, with respect to Class A, Class B, Class C, and Class D shares, service organizations can enter into agreements with the Distributor and receive a continuing fee (12b-1 fee) of up to 0.25% per annum of the average daily net assets attributable to the particular service organizations for providing personal services and/or the maintenance of shareholder accounts. To avoid any duplication of the 12b-1 fee, the 12b-1 fees to be paid by each class of a Fund will be reduced by the dollar amount of any 12b-1 fees paid by the Underlying Funds with respect to shares owned by the Fund.

For the year ended December 31, 2003, 12b-1 fees incurred by the Time Horizon 30 Fund, Time Horizon 20 Fund, Time Horizon 10 Fund, and the Harvester Fund (net of 12b-1 fees paid by underlying funds), aggregated $130, $160, $190, and $129, respectively, or 0.01% per annum of the average daily net assets of Class A shares.

With respect to Class C and Class D shares, service organizations may receive up to 0.75% per annum of the average daily net assets for providing other distribution assistance. Such fees are paid monthly by the Funds to the Distributor pursuant to the Plan.

With respect to Class B shares, a distribution fee of 0.75% per annum of the average daily net assets is payable monthly by the Funds to the Distributor; however, the Distributor has sold its rights to this fee to third parties (the “Purchasers”), which provide funding to the Distributor to enable it to pay commissions to dealers at the time of the sale of the related Class B shares.

For the year ended December 31, 2003, the 12b-1 fees incurred under the Plan (net of 12b-1 fees paid by Underlying Funds), and their equivalent per annum percentage of the average daily net assets of Class B, Class C, and Class D shares, were as follows:

Fund	Class B		Class C		Class D		Fee Rate
Time Horizon 30 Fund	$	8,341	$	14,030	$	3,573		0.75	%
Time Horizon 20 Fund		16,709		36,020		7,552		0.75
Time Horizon 10 Fund		25,573		43,469		8,022		0.75
Harvester Fund		27,375		47,328		9,278		0.75

The Distributor is entitled to retain any CDSC imposed on certain redemptions of Class A, Class C and Class D shares. For the year ended December 31, 2003, such charges amounted to $603 for Time Horizon 30 Fund, $1,344 for Time Horizon 20 Fund, $2,531 for Time Horizon 10 Fund and $6,362 for Harvester Fund.

The Distributor has sold its rights to the Purchasers to collect any CDSC imposed on redemptions of Class B shares. In connection with the sale of its rights to collect any CDSC and the distribution fees with respect to Class B shares described above, the Distributor receives payments from the Purchasers based on the value of Class B shares sold. The aggregate of such payments retained by the Distributor for the year ended December 31, 2003, were as follows:

25

Notes to Financial Statements

Fund	Amount			Fund	Amount
Time Horizon 30 Fund		$	1,370	Time Horizon 10 Fund		$	1,998
Time Horizon 20 Fund			2,596	Harvester Fund			795

Seligman Services, Inc., an affiliate of the Manager, is eligible to receive commissions from certain sales of shares of the Series, as well as distribution and service fees pursuant to the Plan. For the year ended December 31, 2003, Seligman Services, Inc. received commissions from the sale of shares of each Fund and distribution and service fees, pursuant to the Plan, as follows:

Fund	Commissions			Distribution and Service Fees			Fund	Commissions			Distribution and Service Fees
Time Horizon 30 Fund		$	186		$	276	Time Horizon 10 Fund		$	100		$	264
Time Horizon 20 Fund			262			566	Harvester Fund			—			244

Seligman Data Corp., which is owned by certain associated investment companies, charged the Series at cost the following amounts for shareholder account services in accordance with a methodology approved by the Series’ directors:

Fund	Amount			Fund	Amount
Time Horizon 30 Fund		$	3,055	Time Horizon 10 Fund		$	7,694
Time Horizon 20 Fund			6,835	Harvester Fund			8,982

Certain officers and directors of the Series are officers or directors of the Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.

The Series 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 selected Funds of the Series or other funds in the Seligman Group of Investment Companies. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid. The cost of such fees and earnings/loss accrued theron is included in directors’ fees and expenses, and the accumulated balances thereof at December 31, 2003, included in other liabilities, were as follows:

Fund	Amount			Fund	Amount
Time Horizon 30 Fund		$	1,556	Time Horizon 10 Fund		$	1,583
Time Horizon 20 Fund			1,572	Harvester Fund			1,579

5. Capital Loss Carryforward — At December 31, 2003, each Fund had net capital loss carryforwards for federal income tax purposes which are available for offset against future taxable net capital gains as follows:

Expiration	2009		2010		2011		Total
Time Horizon 30 Fund					$	167,882	$	167,882
Time Horizon 20 Fund						471,909		471,909
Time Horizon 10 Fund			$	927,755		1,535,613		2,463,368
Harvester Fund	$	262,299				872,160		1,134,459

Accordingly, no capital gains distributions are expected to be paid to shareholders of these Funds until net capital gains have been realized in excess of the available capital loss carryforward.

26

Notes to Financial Statements

6.	Other Matters — The Manager has been conducting an extensive internal review in response to recent developments regarding disruptive or illegal trading 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 con-fident 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 Series have been reviewing, and will continue to review, the foregoing matters. If the Series 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 Series.
7.	Capital Stock Share Transactions — The Board of Directors, at its discretion, may classify any unissued shares of Capital Stock among any Fund of the Series. At December 31, 2003, 4,000,000,000 shares were authorized for the Series, all at a par value of $0.001 per share. Transactions in shares of Capital Stock were as follows:

	Year Ended December 31,
Time Horizon 30 Fund	2003						2002
Class A	Shares			Amount			Shares			Amount
Sales of shares		131,701		$	618,274			77,828		$	383,641
Exchanged from associated funds		63,463			324,395			99,975			472,873
Total		195,164			942,669			177,803			856,514
Shares repurchased		(26,461	)		(121,333	)		(32,647	)		(157,812	)
Exchanged into associated funds		(68,817	)		(323,590	)		(23,571	)		(118,606	)
Total		(95,278	)		(444,923	)		(56,218	)		(276,418	)
Increase		99,886		$	497,746			121,585		$	580,096
Class B	Shares			Amount			Shares			Amount
Sales of shares		86,220		$	392,342			100,219		$	452,852
Exchanged from associated funds		15,638			72,430			14,374			65,139
Total		101,858			464,772			114,593			517,991
Shares repurchased		(28,285	)		(133,690	)		(19,660	)		(95,309	)
Exchanged into associated funds		(5,920	)		(26,094	)		(18,052	)		(86,658	)
Total		(34,205	)		(159,784	)		(37,712	)		(181,967	)
Increase		67,653		$	304,988			76,881		$	336,024

27

Notes to Financial Statements

	Year Ended December 31,
Time Horizon 30 Fund	2003						2002
Class C	Shares			Amount			Shares			Amount
Sales of shares		83,458		$	377,835			126,077		$	621,631
Exchanged from associated funds		2,568			13,442			3,918			20,195
Total		86,026			391,277			129,995			641,826
Shares repurchased		(114,495	)		(544,149	)		(75,524	)		(315,636	)
Exchanged into associated funds		(7,127	)		(29,760	)		(524	)		(2,343	)
Total		(121,622	)		(573,909	)		(76,048	)		(317,979	)
Increase (decrease)		(35,596	)	$	(182,632	)		53,947		$	323,847
Class D	Shares			Amount			Shares			Amount
Sales of shares		39,170		$	182,403			31,964		$	150,897
Exchanged from associated funds		8,003			43,649			15,549			73,692
Total		47,173			226,052			47,513			224,589
Shares repurchased		(7,793	)		(36,387	)		(30,070	)		(145,780	)
Exchanged into associated funds		(512	)		(2,048	)		(1,087	)		(5,790	)
Total		(8,305	)		(38,435	)		(31,157	)		(151,570	)
Increase		38,868		$	187,617			16,356		$	73,019

28

Notes to Financial Statements

	Year Ended December 31,
Time Horizon 20 Fund	2003						2002
Class A	Shares			Amount			Shares			Amount
Sales of shares		179,991		$	846,219			186,494		$	923,058
Exchanged from associated funds		104,852			520,780			76,541			365,331
Total		284,843			1,366,999			263,035			1,288,389
Shares repurchased		(85,211	)		(414,748	)		(81,132	)		(385,546	)
Exchanged into associated funds		(32,039	)		(139,096	)		(37,384	)		(177,720	)
Total		(117,250	)		(553,844	)		(118,516	)		(563,266	)
Increase		167,593		$	813,155			144,519		$	725,123
Class B	Shares			Amount			Shares			Amount
Sales of shares		169,840		$	737,420			161,123		$	776,154
Exchanged from associated funds		25,375			125,649			17,906			80,873
Total		195,215			863,069			179,029			857,027
Shares repurchased		(39,785	)		(188,534	)		(40,938	)		(190,563	)
Exchanged into associated funds		(8,346	)		(36,159	)		(15,207	)		(70,108	)
Total		(48,131	)		(224,693	)		(56,145	)		(260,671	)
Increase		147,084		$	638,376			122,884		$	596,356
Class C	Shares			Amount			Shares			Amount
Sales of shares		269,329		$	1,197,233			342,333		$	1,688,692
Exchanged from associated funds		25,549			128,492			17,749			92,840
Total		294,878			1,325,725			360,082			1,781,532
Shares repurchased		(347,569	)		(1,529,054	)		(286,664	)		(1,206,068	)
Exchanged into associated funds		(11,805	)		(48,604	)		(69,788	)		(298,676	)
Total		(359,374	)		(1,577,658	)		(356,452	)		(1,504,744	)
Increase (decrease)		(64,496	)	$	(251,933	)		3,630		$	276,788
Class D	Shares			Amount			Shares			Amount
Sales of shares		44,113		$	192,811			90,028		$	418,246
Exchanged from associated funds		14,344			70,544			7,958			38,560
Total		58,457			263,355			97,986			456,806
Shares repurchased		(62,098	)		(268,891	)		(38,787	)		(182,435	)
Exchanged into associated funds		(8,084	)		(31,690	)		(18,720	)		(90,805	)
Total		(70,182	)		(300,581	)		(57,507	)		(273,240	)
Increase (decrease)		(11,725	)	$	(37,226	)		40,479		$	183,566

29

Notes to Financial Statements

	Year Ended December 31,
Time Horizon 10 Fund	2003						2002
Class A	Shares			Amount			Shares			Amount
Sales of shares		224,022		$	1,075,623			175,829		$	866,883
Exchanged from associated funds		74,693			363,261			49,140			237,218
Shares issued in payment of dividends		5,324			28,621			8,444			35,887
Total		304,039			1,467,505			233,413			1,139,988
Shares repurchased		(125,746	)		(552,128	)		(122,370	)		(551,188	)
Exchanged into associated funds		(7,047	)		(30,935	)		(27,699	)		(128,895	)
Total		(132,793	)		(583,063	)		(150,069	)		(680,083	)
Increase		171,246		$	884,442			83,344		$	459,905
Class B	Shares			Amount			Shares			Amount
Sales of shares		122,441		$	571,419			119,407		$	588,191
Exchanged from associated funds		38,900			189,631			94,435			463,379
Shares issued in payment of dividends		1,096			5,845			3,608			15,228
Total		162,437			766,895			217,450			1,066,798
Shares repurchased		(137,961	)		(628,749	)		(169,162	)		(788,856	)
Exchanged into associated funds		(17,789	)		(74,711	)		(76,923	)		(344,345	)
Total		(155,750	)		(703,460	)		(246,085	)		(1,133,201	)
Increase (decrease)		6,687		$	63,435			(28,635	)	$	(66,403	)
Class C	Shares			Amount			Shares			Amount
Sales of shares		200,181		$	942,079			415,066		$	2,084,780
Exchanged from associated funds		81,938			383,291			211,222			911,850
Shares issued in payment of dividends		1,894			10,088			9,048			38,127
Total		284,013			1,335,458			635,336			3,034,757
Shares repurchased		(589,107	)		(2,571,245	)		(291,950	)		(1,286,032	)
Exchanged into associated funds		(64,139	)		(292,425	)		(225,392	)		(946,411	)
Total		(653,246	)		(2,863,670	)		(517,342	)		(2,232,443	)
Increase (decrease)		(369,233	)	$	(1,528,212	)		117,994		$	802,314
Class D	Shares			Amount			Shares			Amount
Sales of shares		44,997		$	212,401			31,001		$	147,062
Exchanged from associated funds		39,228			185,299			66,155			338,070
Shares issued in payment of dividends		382			2,036			1,288			5,434
Total		84,607			399,736			98,444			490,566
Shares repurchased		(35,068	)		(153,537	)		(78,212	)		(353,661	)
Exchanged into associated funds		(34,429	)		(142,865	)		(1,212	)		(5,484	)
Total		(69,497	)		(296,402	)		(79,424	)		(359,145	)
Increase		15,110		$	103,334			19,020		$	131,421

30

Notes to Financial Statements

	Year Ended December 31,
Harvester Fund	2003						2002
Class A	Shares			Amount			Shares			Amount
Sales of shares		95,670		$	449,253			302,783		$	1,436,218
Exchanged from associated funds		80,502			362,825			67,728			312,816
Shares issued in payment of dividends		7,123			33,101			12,384			59,420
Total		183,295			845,179			382,895			1,808,454
Shares repurchased		(71,898	)		(333,440	)		(199,687	)		(881,851	)
Exchanged into associated funds		(7,911	)		(36,690	)		(30,907	)		(148,393	)
Total		(79,809	)		(370,130	)		(230,594	)		(1,030,244	)
Increase		103,486		$	475,049			152,301		$	778,210
Class B	Shares			Amount			Shares			Amount
Sales of shares		49,834		$	227,195			147,962		$	681,711
Exchanged from associated funds		347,744			1,571,466			203,278			921,346
Shares issued in payment of dividends		5,054			23,550			10,326			49,962
Total		402,632			1,822,211			361,566			1,653,019
Shares repurchased		(132,184	)		(612,972	)		(135,731	)		(611,901	)
Exchanged into associated funds		(130,653	)		(609,945	)		(26,335	)		(118,062	)
Total		(262,837	)		(1,222,917	)		(162,066	)		(729,963	)
Increase		139,795		$	599,294			199,500		$	923,056
Class C	Shares			Amount			Shares			Amount
Sales of shares		201,232		$	942,513			397,059		$	1,897,446
Exchanged from associated funds		123,183			569,746			85,323			409,998
Shares issued in payment of dividends		8,552			39,724			35,220			171,041
Total		332,967			1,551,983			517,602			2,478,485
Shares repurchased		(462,752	)		(2,130,564	)		(383,877	)		(1,710,146	)
Exchanged into associated funds		(56,462	)		(254,307	)		(150,567	)		(655,002	)
Total		(519,214	)		(2,384,871	)		(534,444	)		(2,365,148	)
Increase (decrease)		(186,247	)	$	(832,888	)		(16,842	)	$	113,337
Class D	Shares			Amount			Shares			Amount
Sales of shares		16,472		$	76,921			10,715		$	53,218
Exchanged from associated funds		45,447			216,196			18,744			87,883
Shares issued in payment of dividends		915			4,243			5,881			28,654
Total		62,834			297,360			35,340			169,755
Shares repurchased		(40,718	)		(189,560	)		(17,776	)		(79,745	)
Exchanged into associated funds		(5,659	)		(26,883	)		(3,441	)		(15,918	)
Total		(46,377	)		(216,443	)		(21,217	)		(95,663	)
Increase		16,457		$	80,917			14,123		$	74,092

31

Financial Highlights

The tables below are intended to help you understand the financial performance of each Class of each Fund from its inception. Certain information reflects financial results for a single share of a Class 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 Class, assuming you reinvested all your dividends and capital gain distributions. Total returns do not reflect any taxes or sales charges and are not annualized for periods of less than one year.

	Time Horizon 30 Fund
	Class A												Class B
	Year Ended December 31,									1/10/00* to 12/31/00			Year Ended December 31,									4/24/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.08		$	5.51		$	6.24		$	7.14		$	3.99		$	5.43		$	6.21		$	7.00
Income from Investment Operations:
Net investment loss		(0.02	)		(0.02	)		(0.03	)		(0.03	)		(0.06	)		(0.06	)		(0.07	)		(0.05	)
Net realized and unrealized gain (loss) on investments		1.62			(1.41	)		(0.46	)		(0.84	)		1.60			(1.38	)		(0.47	)		(0.71	)
Total from Investment Operations		1.60			(1.43	)		(0.49	)		(0.87	)		1.54			(1.44	)		(0.54	)		(0.76	)
Less Distributions:
Distributions from net investment income		—			—			(0.03	)		—			—			—			(0.03	)		—
Distributions from net realized capital gains		—			—			(0.21	)		(0.03	)		—			—			(0.21	)		(0.03	)
Total Distributions		—			—			(0.24	)		(0.03	)		—			—			(0.24	)		(0.03	)
Net Asset Value, End of Period	$	5.68		$	4.08		$	5.51		$	6.24		$	5.53		$	3.99		$	5.43		$	6.21
Total Return:		39.22	%		(25.95	)%		(7.47	)%		(12.18	)%øø		38.60	%		(26.52	)%		(8.32	)%		(10.85	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	2,703		$	1,531		$	1,399		$	485		$	1,490		$	806		$	679		$	262
Ratio of expenses to average net assets		0.51	%		0.51	%		0.51	%		0.51	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment loss to average net assets		(0.47	)%		(0.49	)%		(0.49	)%		(0.51	)%†		(1.22	)%		(1.24	)%		1.24	%		(1.26	)%†
Portfolio turnover rate		1.74	%		—			—			—			1.74	%		—			—			—
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		1.58	%		1.93	%		3.70	%		25.60	%†		2.33	%		2.68	%		4.45	%		14.14	%†
Ratio of net investment loss to average net assets		(1.55	)%		(1.91	)%		(3.68	)%		(25.60	)%†		(2.30	)%		(2.66	)%		(4.43	)%		(14.14	)%†

See footnotes on page 40.

32

Financial Highlights

	Time Horizon 30 Fund
	Class C												Class D
	Year Ended December 31,												Year Ended December 31,
										2/8/00†† to 12/31/00												2/14/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	3.99		$	5.43		$	6.21		$	7.56		$	3.99		$	5.43		$	6.21		$	7.58
Income from Investment Operations:
Net investment loss		(0.06	)		(0.06	)		(0.07	)		(0.07	)		(0.06	)		(0.06	)		(0.07	)		(0.08	)
Net realized and unrealized gain (loss) on investments		1.60			(1.38	)		(0.47	)		(1.25	)		1.60			(1.38	)		(0.47	)		(1.26	)
Total from Investment Operations		1.54			(1.44	)		(0.54	)		(1.32	)		1.54			(1.44	)		(0.54	)		(1.34	)
Less Distributions:
Distributions from net investment income		—			—			(0.03	)		—			—			—			(0.03	)		—
Distributions from net realized capital gains		—			—			(0.21	)		(0.03	)		—			—			(0.21	)		(0.03	)
Total Distributions		—			—			(0.24	)		(0.03	)		—			—			(0.24	)		(0.03	)
Net Asset Value, End of Period	$	5.53		$	3.99		$	5.43		$	6.21		$	5.53		$	3.99		$	5.43		$	6.21
Total Return:		38.60	%		(26.52	)%		(8.32	)%		(17.46	)%øø		38.60	%		(26.52	)%		(8.32	)%		(17.67	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	2,086		$	1,649		$	1,950		$	1,251		$	707		$	355		$	395		$	174
Ratio of expenses to average net assets		1.25	%		1.26	%		1.26	%		1.26	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment loss to average net assets		(1.22	)%		(1.24	)%		(1.24	)%		(1.26	)%†		(1.22%	)		(1.24	)%		(1.24	)%		(1.26	)%†
Portfolio turnover rate		1.74	%		—			—			—			1.74	%		—			—			—
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		2.33	%		2.68	%		4.45	%		14.14	%†		2.33	%		2.68	%		4.45	%		14.14	%†
Ratio of net investment loss to average net assets		(2.30	)%		(2.66	)%		(4.43	)%		(14.14	)%†		(2.30	)%		(2.66	)%		(4.43	)%		(14.14	)%†

See footnotes on page 40.

33

Financial Highlights

	Time Horizon 20 Fund
	Class A												Class B
	Year Ended December 31,									1/10/00* to 12/31/00			Year Ended December 31,									3/21/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.11		$	5.59		$	6.47		$	7.14		$	4.00		$	5.48		$	6.41		$	7.93
Income from Investment Operations:
Net investment loss		(0.02	)		(0.02	)		(0.03	)		(0.03	)		(0.05	)		(0.06	)		(0.07	)		(0.07	)
Net realized and unrealized gain (loss) on investments		1.58			(1.46	)		(0.61	)		(0.60	)		1.54			(1.42	)		(0.62	)		(1.41	)
Total from Investment Operations		1.56			(1.48	)		(0.64	)		(0.63	)		1.49			(1.48	)		(0.69	)		(1.48	)
Less Distributions:
Distributions from net investment income		—			—			(0.03	)		—			—			—			(0.03	)		—
Distributions from net realized capital gains		—			—			(0.21	)		(0.04	)		—			—			(0.21	)		(0.04	)
Total Distributions		—			—			(0.24	)		(0.04	)		—			—			(0.24	)		(0.04	)
Net Asset Value, End of Period	$	5.67		$	4.11		$	5.59		$	6.47		$	5.49		$	4.00		$	5.48		$	6.41
Total Return:		37.96	%		(26.48	)%		(9.52	)%		(8.83	)%øø		37.25	%		(27.01	)%		(10.40	)%		(18.67	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	4,657		$	2,683		$	2,842		$	1,171		$	2,949		$	1,559		$	1,463		$	739
Ratio of expenses to average net assets		0.50	%		0.51	%		0.51	%		0.51	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment loss to average net assets		(0.41	)%		(0.44	)%		(0.44	)%		(0.51	)%†		(1.16	)%		(1.19	)%		(1.19	)%		(1.26	)%†
Portfolio turnover rate		1.55	%		3.01	%		—			0.62	%ø		1.55	%		3.01	%		—			0.62	%ø
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		0.81	%		1.19	%		1.64	%		11.84	%†		1.56	%		1.94	%		2.39	%		5.84	%†
Ratio of net investment loss to average net assets		(0.73	)%		(1.12	)%		(1.57	)%		(11.84	)%†		(1.48	)%		(1.87	)%		(2.32	)%		(5.84	)%†

See footnotes on page 40.

34

Financial Highlights

	Time Horizon 20 Fund
	Class C												Class D
	Year Ended December 31,									1/18/00†† to 12/31/00			Year Ended December 31,									1/21/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.00		$	5.48		$	6.41		$	7.28		$	4.00		$	5.48		$	6.41		$	7.31
Income from Investment Operations:
Net investment loss		(0.05	)		(0.06	)		(0.07	)		(0.08	)		(0.05	)		(0.06	)		(0.07	)		(0.09	)
Net realized and unrealized gain (loss) on investments		1.54			(1.42	)		(0.62	)		(0.75	)		1.54			(1.42	)		(0.62	)		(0.77	)
Total from Investment Operations		1.49			(1.48	)		(0.69	)		(0.83	)		1.49			(1.48	)		(0.69	)		(0.86	)
Less Distributions:
Distributions from net investment income		—			—			(0.03	)		—			—			—			(0.03	)		—
Distributions from net realized capital gains		—			—			(0.21	)		(0.04	)		—			—			(0.21	)		(0.04	)
Total Distributions		—			—			(0.24	)		(0.04	)		—			—			(0.24	)		(0.04	)
Net Asset Value, End of Period	$	5.49		$	4.00		$	5.48		$	6.41		$	5.49		$	4.00		$	5.48		$	6.41
Total Return:		37.25	%		(27.01	)%		(10.40	)%		(11.41	)%øø		37.25	%		(27.01	)%		(10.40	)%		(11.77	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	5,695		$	4,405		$	6,017		$	2,729		$	1,217		$	933		$	1,057		$	687
Ratio of expenses to average net assets		1.25	%		1.26	%		1.26	%		1.26	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment loss to average net assets		(1.16	)%		(1.19	)%		(1.19	)%		(1.26	)%†		(1.16	)%		(1.19	)%		(1.19	)%		(1.26	%)†
Portfolio turnover rate		1.55	%		3.01	%		—			0.62	%ø		1.55	%		3.01	%		—			0.62	%ø
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		1.56	%		1.94	%		2.39	%		5.84	%†		1.56	%		1.94	%		2.39	%		5.84	%†
Ratio of net investment loss to average net assets		(1.48	)%		(1.87	)%		(2.32	)%		(5.84	)%†		(1.48	)%		(1.87	)%		(2.32	)%		(5.84	)%†

See footnotes on page 40.

35

Financial Highlights

	Time Horizon 10 Fund
	Class A												Class B
	Year Ended December 31,									1/10/00* to 12/31/00			Year Ended December 31,									2/18/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.19		$	5.55		$	6.59		$	7.14		$	4.16		$	5.50		$	6.55		$	7.33
Income from Investment Operations:
Net investment income		0.04			0.05			0.10			0.10			0.01			0.02			0.05			0.04
Net realized and unrealized gain (loss) on investments		1.34			(1.35	)		(0.82	)		(0.60	)		1.31			(1.33	)		(0.81	)		(0.77	)
Total from Investment Operations		1.38			(1.30	)		(0.72	)		(0.50	)		1.32			(1.31	)		(0.76	)		(0.73	)
Less Distributions:
Distributions from net investment income		(0.04	)		(0.05	)		(0.13	)		—			(0.01	)		(0.02	)		(0.10	)		—
Return of capital		—			(0.01	)		—			—			—			(0.01	)		—			—
Distributions from net realized capital gains		—			—			(0.19	)		(0.05	)		—			—			(0.19	)		(0.05	)
Total Distributions		(0.04	)		(0.06	)		(0.32	)		(0.05	)		(0.01	)		(0.03	)		(0.29	)		(0.05	)
Net Asset Value, End of Period	$	5.53		$	4.19		$	5.55		$	6.59		$	5.47		$	4.16		$	5.50		$	6.55
Total Return:		32.96	%		(23.43	)%		(10.69	)%		(7.02	)%øø		31.71	%		(23.90	)%		(11.38	)%		(9.98	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	4,415		$	2,627		$	3,014		$	1,037		$	4,123		$	3,110		$	4,270		$	2,865
Ratio of expenses to average net assets		0.50	%		0.51	%		0.51	%		0.51	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment income to average net assets		0.87	%		1.01	%		1.64	%		1.44	%†		0.12	%		0.26	%		0.89	%		0.69	%†
Portfolio turnover rate		7.48	%		8.20	%		6.38	%		—			7.48	%		8.20	%		6.38	%		—
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		0.81	%		0.87	%		1.27	%		8.02	%†		1.56	%		1.62	%		2.02	%		4.36	%†
Ratio of net investment income (loss) to average net assets		0.56	%		0.65	%		0.88	%		(6.07	)%†		(0.19	)%		(0.10	)%		0.13	%		(2.41	)%†

See footnotes on page 40.

36

Financial Highlights

	Time Horizon 10 Fund
	Class C												Class D
	Year Ended December 31,									3/6/00†† to 12/31/00			Year Ended December 31,									2/15/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.16		$	5.50		$	6.55		$	7.78		$	4.16		$	5.50		$	6.55		$	7.42
Income from Investment Operations:
Net investment income		0.01			0.02			0.05			0.04			0.01			0.02			0.05			0.04
Net realized and unrealized gain (loss) on investments		1.31			(1.33	)		(0.81	)		(1.22	)		1.31			(1.33	)		(0.81	)		(0.86	)
Total from Investment Operations		1.32			(1.31	)		(0.76	)		(1.18	)		1.32			(1.31	)		(0.76	)		(0.82	)
Less Distributions:
Distributions from net investment income		(0.01	)		(0.02	)		(0.10	)		—			(0.01	)		(0.02	)		(0.10	)		—
Return of capital		—			(0.01	)		—			—			—			(0.01	)		—			—
Distributions from net realized capital gains		—			—			(0.19	)		(0.05	)		—			—			(0.19	)		(0.05	)
Total Distributions		(0.01	)		(0.03	)		(0.29	)		(0.05	)		(0.01	)		(0.03	)		(0.29	)		(0.05	)
Net Asset Value, End of Period	$	5.47		$	4.16		$	5.50		$	6.55		$	5.47		$	4.16		$	5.50		$	6.55
Total Return:		31.71	%		(23.90	)%		(11.38	)%		(15.18	)%øø		31.71	%		(23.90	)%		(11.38	)%		(11.07	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	6,510		$	6,491		$	7,933		$	2,331		$	1,388		$	994		$	1,209		$	839
Ratio of expenses to average net assets		1.25	%		1.26	%		1.26	%		1.26	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment income to average net assets		0.12	%		0.26	%		0.89	%		0.69	%†		0.12	%		0.26	%		0.89	%		0.69	%†
Portfolio turnover rate		7.48	%		8.20	%		6.38	%		—			7.48	%		8.20	%		6.38	%		—
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		1.56	%		1.62	%		2.02	%		4.36	%†		1.56	%		1.62	%		2.02	%		4.36	%†
Ratio of net investment income (loss) to average net assets		(0.19	)%		(0.10	)%		0.13	%		(2.41	)%†		(0.19	)%		(0.10	)%		0.13	%		2.41	%†

See footnotes on page 40.

37

Financial Highlights

	Harvester Fund
	Class A												Class B
	Year Ended December 31,									1/10/00* to 12/31/00			Year Ended December 31,									2/17/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.29		$	5.31		$	6.56		$	7.14		$	4.29		$	5.31		$	6.54		$	7.16
Income from Investment Operations:
Net investment income		0.08			0.10			0.20			0.23			0.04			0.05			0.16			0.16
Net realized and unrealized gain (loss) on investments		0.83			(0.96	)		(1.15	)		(0.57	)		0.84			(0.96	)		(1.15	)		(0.61	)
Total from
Investment Operations		0.91			(0.86	)		(0.95	)		(0.34	)		0.88			(0.91	)		(0.99	)		(0.45	)
Less Distributions:
Distributions from net investment income		(0.07	)		(0.10	)		(0.24	)		(0.23	)		(0.04	)		(0.05	)		(0.18	)		(0.16	)
Dividends in excess of net investment income		—			(0.04	)		—			—			—			(0.04	)		—			—
Return of capital		—			(0.02	)		—			—			—			(0.02	)		—			—
Distributions from net realized capital gains		—			—			(0.06	)		(0.01	)		—			—			(0.06	)		(0.01	)
Total Distributions		(0.07	)		(0.16	)		(0.30	)		(0.24	)		(0.04	)		(0.11	)		(0.24	)		(0.17	)
Net Asset Value, End of Period	$	5.13		$	4.29		$	5.31		$	6.56		$	5.13		$	4.29		$	5.31		$	6.54
Total Return:		21.44	%		(16.54	)%		(14.64	)%		(4.99	)%øø		20.55	%		(17.28	)%		(15.18	)%		(6.11	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	3,085		$	2,135		$	1,830		$	1,339		$	4,133		$	2,855		$	2,470		$	1,115
Ratio of expenses to average net assets		0.50	%		0.51	%		0.51	%		0.51†	%		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment income to average net assets		1.52	%		1.85	%		3.47	%		3.38	%†		0.77	%		1.10	%		2.72	%		2.63	%†
Portfolio turnover rate		5.69	%		39.28	%		12.80	%		9.14	% ø		5.69	%		39.28	%		12.80	%		9.14	%ø
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		0.73	%		1.05	%		1.36	%		12.49	%†		1.48	%		1.80	%		2.11	%		6.04	%†
Ratio of net investment income (loss) to average net assets		1.29	%		1.31	%		2.61	%		(8.60	)%†		0.54	%		0.56	%		1.86	%		(2.15	)%†

See footnotes on page 40.

38

Financial Highlights

	Harvester Fund
	Class C												Class D
	Year Ended December 31,												Year Ended December 31,
										1/18/00†† to 12/31/00												2/29/00†† to 12/31/00
	2003			2002			2001						2003			2002			2001
Per Share Data:
Net Asset Value, Beginning of Period	$	4.29		$	5.31		$	6.54		$	7.16		$	4.29		$	5.31		$	6.54		$	7.21
Income from Investment Operations:
Net investment income		0.04			0.05			0.15			0.18			0.04			0.05			0.15			0.16
Net realized and unrealized gain (loss) on investments		0.84			(0.96	)		(1.14	)		(0.61	)		0.84			(0.96	)		(1.14	)		(0.66	)
Total from Investment Operations		0.88			(0.91	)		(0.99	)		(0.43	)		0.88			(0.91	)		(0.99	)		(0.50	)
Less Distributions:
Distributions from net investment income		(0.04	)		(0.05	)		(0.18	)		(0.18	)		(0.04	)		(0.05	)		(0.18	)		(0.16	)
Dividends in excess of net investment income		—			(0.04	)		—			—			—			(0.04	)		—			—
Return of capital		—			(0.02	)		—			—			—			(0.02	)		—			—
Distributions from net realized capital gains		—			—			(0.06	)		(0.01	)		—			—			(0.06	)		(0.01	)
Total Distributions		(0.04	)		(0.11	)		(0.24	)		(0.19	)		(0.04	)		(0.11	)		(0.24	)		(0.17	)
Net Asset Value, End of Period	$	5.13		$	4.29		$	5.31		$	6.54		$	5.13		$	4.29		$	5.31		$	6.54
Total Return:		20.55	%		(17.28	)%		(15.18	)%		(6.02	)%øø		20.55	%		(17.28	)%		(15.18	)%		(7.19	)%øø
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	6,665		$	6,371		$	7,965		$	2,704		$	1,431		$	1,125		$	1,316		$	122
Ratio of expenses to average net assets		1.25	%		1.26	%		1.26	%		1.26	%†		1.25	%		1.26	%		1.26	%		1.26	%†
Ratio of net investment income to average net assets		0.77	%		1.10	%		2.72	%		2.63	%†		0.77	%		1.10	%		2.72	%		2.63	%†
Portfolio turnover rate		5.69	%		39.28	%		12.80	%		9.14	%ø		5.69	%		39.28	%		12.80	%		9.14	%ø
Without fee waiver and expense reimbursement:**
Ratio of expenses to average net assets		1.48	%		1.80	%		2.11	%		6.04	%†		1.48	%		1.80	%		2.11	%		6.04	%†
Ratio of net investment income (loss) to average net assets		0.54	%		0.56	%		1.86	%		(2.15	)%†		0.54	%		0.56	%		1.86	%		(2.15	)%†

See footnotes on page 40.

39

Financial Highlights

*	Commencement of investment operations.
**	The Manager, at its discretion, reimbursed certain expenses and waived management fees for the periods presented.
†	In computing the ratios of expenses and net investment income to average net assets, income and expenses other than organization expenses are annualized. Organization expenses are not annualized because they were a one-time expense incurred at the Series’ commencement of investment operations.
††	Commencement of issuance of shares.
ø	For the period 1/10/00 to 12/31/00.
øø	The total returns shown for each Class of shares from commencement of investment operations/issuance of shares to 12/31/00, are calculated from the later of the respective Fund’s commencement of investment operations date (1/10/00) or the initial issuance date of shares of the Class. The total returns for Class A shares were calculated from the commencement of investment operations date. Class B, C, and D shares of the Fund were offered to the public on the commencement of investment operations date, but were first issued on the respective dates shown in the table. If shares of each Class had been issued on the commencement of investment operations date, the total returns for each Class would have been as follows:

Time Horizon 30 Fund			Time Horizon 20 Fund			Time Horizon 10 Fund			Harvester Fund
Class A	(12.18	)%	Class A	(8.83	)%	Class A	(7.02	)%	Class A	(4.99	)%
Class B	(12.53	)	Class B	(9.46	)	Class B	(7.78	)	Class B	(5.87	)
Class C	(12.77	)	Class C	(9.69	)	Class C	(7.64	)	Class C	(5.98	)
Class D	(12.76	)	Class D	(9.68	)	Class C	(7.90	)	Class D	(5.97	)

These total returns have been computed from the commencement of investment operations date and incorporate the total return of Class A shares of the Fund from the commencement of investment operations date through the initial issuance dates of each of the other classes of shares, adjusted to reflect the higher expenses associated with the Administration, Shareholder Services and Distribution Plan for those classes that would have been incurred had they first been issued on the commencement of investment operations date.

See Notes to Financial Statements.

40

Report of Independent Auditors

The Board of Directors and Shareholders,
Seligman Time Horizon/Harvester Series, Inc.:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Seligman Time Horizon/Harvester Series, Inc. (comprising, respectively, Seligman Time Horizon 30 Fund, Seligman Time Horizon 20 Fund, Seligman Time Horizon 10 Fund, and Seligman Harvester 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 presented. These financial statements and financial highlights are the responsibility of the Series’ 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 of America. 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. Our procedures included confirmation of securities owned as of December 31, 2003, by correspondence with the Series’ custodian and shareholder service agent. 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 Funds constituting Seligman Time Horizon/Harvester Series, Inc. as of 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 periods presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
New York, New York
February 24, 2004

41

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Time Horizon/Harvester Series 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		Chairman and Chief Executive Officer of KeySpan Corporation (diversified energy, gas and electrical 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, Inc. New York City Partnership, and the Long Island Association (business and civic organizations).
•	Director: May 2003 to Date
•	Oversees 60 Portfolios in Fund Complex
John R. Galvin (74)2,4		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.
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
Alice S. Ilchman (68)3,4		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 col- lege 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.
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
Frank A. McPherson (70)3,4		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.
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex

See footnotes on page 45.

42

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Time Horizon/Harvester Series is set forth below.

Independent Directors

Name, (Age), Position(s) held with Fundø		Principal Occupation(s) During Past Five Years, Directorships and Other Information
John E. Merow (74)2,4		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.
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
Betsy S. Michel (61)2,4		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).
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
Leroy C. Richie (62)2,4		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.
•	Director: 2000 to Date
•	Oversees 60 Portfolios in Fund Complex
Robert L. Shafer (71)3,4		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).
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
James N. Whitson (68)2,4		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.
•	Director: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex

See footnotes on page 45.

43

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Time Horizon/Harvester Series 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
William C. Morris (65)1		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.
•	Director and Chairman of the Board: 1999 to Date
•	Oversees 61 Portfolios in Fund Complex
Brian T. Zino (51)1		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.
•	Director and President: 1999 to Date
•	Chief Executive Officer: 2002 to Date
•	Oversees 61 Portfolios in Fund Complex
Charles W. Kadlec (57)		Managing Director, J. & W. Seligman & Co. Incorporated; Chief Investment Strategist for Seligman Advisors, Inc. Mr. Kadlec is the architect of several investment strategies, chief among them Seligman Time Horizon Matrix, which is based on an investor’s time horizon to reaching goals, and Harvesting a Lifetime of Savings, a strategy addressing the unique concerns facing retirees.
•	Vice President and Portfolio Manager: 1999 to Date
Thomas G. Rose (46)		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.
•	Vice President: 2000 to Date

See footnotes on page 45.

44

Directors and Officers

Information pertaining to the Directors and Officers of Seligman Time Horizon/Harvester Series 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
Lawrence P. Vogel (47)		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.
•	Vice President: 1999 to Date
•	Treasurer: 2000 to Date
Frank J. Nasta (39)		Managing Director, General Counsel, and 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, Senior Vice President, Law and Regulation, J. & W. Seligman & Co. Incorporated; and Corporate Secretary, Seligman Henderson Co.
•	Secretary: 1999 to Date

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.

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

45

Glossary of Financial Terms

Capital Gain Distribution — A payment to mutual fund shareholders of profits realized on the sale of securities in a fund’s portfolio.

Capital Appreciation/Depreciation — An increase or decrease in the market value of a mutual fund’s portfolio securities, which is reflected in the net asset value of the fund’s shares. Capital appreciation/depreciation of an individual security is in relation to the original purchase price.

Compounding — The change in the value of an investment as shareholders receive earnings on their investment’s earnings. For example, if $1,000 is invested at a fixed rate of 7% a year, the initial investment is worth $1,070 after one year. If the return is compounded, second year earnings will not be based on the original $1,000, but on the $1,070, which includes the first year’s earnings.

Contingent Deferred Sales Charge (CDSC) — Depending on the class of shares owned, a fee charged by a mutual fund when shares are sold back to the fund. The CDSC expires after a fixed time period.

Dividend — A payment by a mutual fund, usually derived from the fund’s net investment income (dividends and interest less expenses).

Dividend Yield — A measurement of a fund’s dividend as a percentage of the maximum offering price or net asset value.

Expense Ratio — The cost of doing business for a mutual fund, expressed as a percent of the fund’s net assets.

Investment Objective — The shared investment goal of a fund and its shareholders.

Management Fee — The amount paid by a mutual fund to its investment advisor(s).

Multiple Classes of Shares — Although an individual mutual fund invests in only one portfolio of securities, it may offer investors several purchase options which are “classes” of shares. Multiple classes permit shareholders to choose the fee structure that best meets their needs and goals. Generally, each class will differ in terms of how and when sales charges and certain fees are assessed.

National Association of Securities Dealers, Inc. (NASD) — A self-regulatory body with authority over firms that distribute mutual funds.

Net Asset Value (NAV) Per Share — The market worth of one fund share, obtained by adding a mutual fund’s total assets (securities, cash, and any accrued earnings), subtracting liabilities, and dividing the resulting net assets by the number of shares outstanding.

Offering Price — The price at which a mutual fund’s share can be purchased. The offering price per share is the current net asset value plus any sales charge.

46

Glossary of Financial Terms

Portfolio Turnover — A measure of the trading activity in a mutual fund’s investment portfolio that reflects how often securities are bought and sold.

Prospectus — The legal document describing a mutual fund to all prospective shareholders. It contains information required by the Securities and Exchange Commission (SEC), such as a fund’s investment objective and policies, services, investment restrictions, how shares are bought and sold, fund fees and other charges, and the fund’s finan-cial highlights.

SEC Yield — SEC Yield refers to the net income earned by a fund during a recent 30-day period. This income is annualized and then divided by the maximum offering price per share on the last day of the 30-day period. The SEC Yield formula reflects semi-annual compounding.

Securities and Exchange Commission —The primary US federal agency that regulates the registration and distribution of mutual fund shares.

Statement of Additional Information — A document that contains more detailed information about an investment company and that supplements the prospectus. It is available at no charge upon request.

Total Return — A measure of a fund’s performance encompassing all elements of return. Reflects the change in share price over a given period and assumes all distributions are taken in additional fund shares. The Average Annual Total Return represents the average annual compounded rate of return for the periods presented.

Wash Sale — A sale of securities in which a taxpayer has acquired substantially identical securities within a period beginning thirty days before and ending thirty days after the date of the sale (a sixty-one day period). A loss resulting from such a sale is not currently deductible for federal income tax purposes, but a gain is taxable.

Yield on Securities — For bonds, the current yield is the coupon rate of interest, divided by the purchase price. For stocks, the yield is measured by dividing dividends paid by the market price of the stock.

Adapted from the Investment Company Institute’s 2002 Mutual Fund Fact Book and the AICPA Audit and Accounting Guide: Audits of Investment Companies dated May 1, 2001.

47

THF2 12/03