-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q6Wj6jJpg6u3lSGomzzXQeL7z+7pBO4hQKDDJRBQlNwuJSH45BKy1+WFyBeYJRf9 t+aSyA5tZ11cxcWr53nKKA== 0000931763-00-000504.txt : 20000314 0000931763-00-000504.hdr.sgml : 20000314 ACCESSION NUMBER: 0000931763-00-000504 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000313 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 CENTRAL INDEX KEY: 0000895360 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 382816473 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07350 FILM NUMBER: 567915 BUSINESS ADDRESS: STREET 1: 6201 POWERS FERRY ROAD NW CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 7709531959 MAIL ADDRESS: STREET 1: 6201 POWERS FERRY ROAD, NW CITY: ATLANTA STATE: GA ZIP: 30339 N-30D 1 ANNUAL REPORT, ACCOUNT 2 [LOGO] CANADA LIFE RONALD E. BEETTAM, F.S.A., F.C.I.A. President Canada Life Insurance Company of America P.O. Box 105662 Atlanta, GA 30348-5662 (770) 953-1959, x2861 (800) 905-1959 FAX: (888) 670-4836 February 28, 2000 Dear Trillium(R) Policyowner: Enclosed is the Trillium Annual Report for the period ending December 31, 1999. We encourage you to review this information and to refer to it as needed throughout the year. Please call your Registered Representative or Canada Life if you have any questions. Thank you for selecting Trillium for your financial needs. Sincerely, /s/ Ronald E. Beettam Ronald E. Beettam Encl. TRILLIUM(R) [LOGO OF CANADA LIFE] A Variable Annuity INSURANCE COMPANY OF AMERICA P.O. Box 105662 Atlanta, GA 30348-5662 (800) 905-1959 Additional Premium Payment Form Please complete the following information: Owner:_____________________________ Amount of Premium Payment: Annuitant:_________________________ $____________ Policy No.:________________________ Owner's Ssn/Tin:___________________ IF YOU ARE CHANGING ALLOCATION PLEASE COMPLETE THE FOLLOWING: ____ This payment only ____ This payment and all future pymts ____ Re-allocate all current assets CASH MGMT (21) ____% INCOME (22) ____% SMALL-CAP VALUE (44) ____% BOND (23) ____% COM STOCK (24) ____% LARGE-CAP VALUE (45) ____% CAPITAL (25) ____% INTERNATIONAL (26) ____% LARGE-CAP GROWTH (281) ____% COMM & INFO (27) ____% GBL GROWTH OPP (28) ____% GBL SMLR CO (29) ____% FRONTIER (41) ____% HIGH YLD BOND (42) ____% GLOBAL TECH (43) ____%
- ------------------------------------------------------------------------------------------------ Fixed Account Options* ____% 1 Yr. (201) ____% 3 Yr. (203) ____% 5 Yr. (205) ____% 7 Yr. (207) ____% 10 Yr. (210) *The Fixed Accounts and/or the Guarantee Periods may not be available in all states. - ------------------------------------------------------------------------------------------------
Total allocation must equal 100% Owner's Signature ___________________________ Date _______________ Joint Owner's Signature ___________________________ Date _______________ PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA Information For Qualified Policy Contributions (This Section Must Be Completed) IS THIS A ROLLOVER? _____YES _____NO IF YES, WHAT TYPE? ____________________ PLEASE NOTE: CONTRIBUTIONS FOR PRIOR TAX YEAR CANNOT BE MADE CONTRIBUTION $___________ FOR __________ AFTER APRIL 15TH OF THE CURRENT TAX YEAR. CONTRIBUTION $___________ FOR __________ PLEASE DIRECT ANY QUESTIONS REGARDING YOUR POLICY TO YOUR REGISTERED REPRESENTATIVE OR TO OUR VARIABLE ANNUITY DEPARTMENT AT (800) 905-1959. Our Variable Annuity Administrators can not advise you on the suitability of your payment. Please contact your Registered Representative to discuss suitability issues prior to submitting your additional premium payment. Variable Annuities are issued by Canada Life Insurance Company of America and offered through its subsidiary, Canada Life of America Financial Services, Inc. (member NASD). The attached are incorporated by reference herein to the Annual Report filed by and on behalf of the following: Seligman Portfolios, Inc., filed March 1, 2000 Portfolios include: Seligman Bond, Seligman Capital, Seligman Cash Management, Seligman Common Stock, Seligman Communications and Information, Seligman Frontier, Seligman Global Growth, Seligman Global Smaller Companies, Seligman Global Technology, Seligman High-Yield Bond, Seligman Income, Seligman International Growth, Seligman Large-Cap Growth, Seligman Large-Cap Value, and Seligman Small-Cap Value. VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ending December 31, 1999 Assuming Contract Continues TRILLIUM [LOGO] A VARIABLE ANNUITY
Since Inception PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date - ------------------------------------------------------------------------------------------------------------------------ Seligman Communications and Information Portfolio 83.13% 43.64% 33.99% -- 33.17% 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Technology Portfolio 115.65 50.67 -- -- 40.92 5/1/96 - ------------------------------------------------------------------------------------------------------------------------ Seligman Frontier Portfolio 14.89 8.49 15.35 -- 15.72 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Small-Cap Value Portfolio 33.30 -- -- -- 5.61 5/1/98 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Smaller Companies Portfolio 26.47 10.57 12.73 -- 12.78 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Capital Portfolio 51.11 29.51 25.07 17.20% 16.08 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman Large-Cap Growth Portfolio (new portfolio) 20.46* 5/1/99 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Growth Portfolio 50.28 25.89 -- -- 20.10 5/1/96 - ------------------------------------------------------------------------------------------------------------------------ Seligman Large-Cap Value Portfolio (4.19) -- -- -- (3.26) 5/1/98 - ------------------------------------------------------------------------------------------------------------------------ Seligman Common Stock Portfolio 11.49 17.66 19.21 13.71 13.82 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman International Growth Portfolio 24.80 14.95 11.86 -- 10.72 5/3/93 - ------------------------------------------------------------------------------------------------------------------------ Seligman Income Portfolio 1.37 6.49 7.99 7.36 7.48 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman High-Yield Bond Portfolio (2.20) 3.30 -- -- 6.14 5/1/95 - ------------------------------------------------------------------------------------------------------------------------ Seligman Bond Portfolio (5.88) 2.47 4.43 4.31 4.33 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman Cash Management Portfolio Current Yield 6.86%+ 3.54 3.76 3.71 3.33 3.53 6/21/88 - ------------------------------------------------------------------------------------------------------------------------
* Not annualized. + Annualized for the seven-day period ending December 31, 1999. The current yield figure shown more closely reflects the current earnings of the Portfolio than total return figures. Although Seligman Cash Management Portfolio seeks to preserve the value of investments at $1.00 per share, it is possible to lose money by investing in the Portfolio. Trillium Fixed Account's rate for the one year Guarantee Period was 4.75% as of December 31, 1999. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The 3-, 5-, 7-, and 10-year Guarantee Periods are currently not approved in all states. Please call 800-221-2783 for state approval and the current rates on these Guarantee Periods. Performance quoted represents past performance, and the investment return and principal value of an investment will fluctuate so that units, when surrendered, may be worth more or less than their original cost. Performance for Seligman Communications and Information and Seligman Global Technology Portfolios was achieved during a market favorable to companies in the technology sector. There can be no assurances that these Portfolios will continue consistently to achieve, by investing in initial public offerings or otherwise, substantially similar performance that the Portfolios had previously experienced. Performance of the variable portfolios reflects the performance of Seligman Portfolios, Inc., the underlying investment vehicle for the Trillium Variable Account, adjusted for the current fees and charges (excluding CDSC) associated with Trillium. For performance figures with CDSC, please see reverse side. The variable account commenced operations on 5/3/93. The fixed account is held in the general account of Canada Life Insurance Company of America (CLICA) and provides a guarantee, by CLICA, against loss of principal, and guarantees payment of a specified current rate of interest. Please contact your financial advisor or call Seligman Advisors at 800-221-2783 for a prospectus containing full details including information on fees and charges. Please read the prospectus carefully before investing or sending money. There are specific risks associated with technology investing, such as greater price fluctuations, foreign taxation, government regulation, and limited liquidity. A portfolio that concentrates its investments in one sector of the economy may be subject to greater share price fluctuations than a more diversified portfolio. The stocks of smaller companies may be subject to above- average market price fluctuations. There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and changes in political conditions. A portfolio with fewer holdings, such as Seligman Large-Cap Value Portfolio and Seligman Small-Cap Value Portfolio, may be subject to greater volatility than a portfolio with a greater number of holdings. High-yield bonds are subject to a greater risk of loss of principal and interest than higher-rated investment grade bonds. Purchasers should carefully assess the risks associated with an investment in Seligman High-Yield Bond Portfolio. VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ending December 31, 1999 Assuming Contract Is Surrendered at End of Period
Since Inception PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date - ------------------------------------------------------------------------------------------------------------------------ Seligman Communications and Information Portfolio 77.73% 42.90% 33.82% -- 33.02% 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Technology Portfolio 110.25 50.01 -- -- 40.42 5/1/96 - ------------------------------------------------------------------------------------------------------------------------ Seligman Frontier Portfolio 9.49 7.21 15.04 -- 15.44 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Small-Cap Value Portfolio 27.90 -- -- -- 2.46 5/1/98 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Smaller Companies Portfolio 21.07 9.33 12.40 -- 12.47 10/4/94 - ------------------------------------------------------------------------------------------------------------------------ Seligman Capital Portfolio 45.71 28.61 24.85 17.20% 16.08 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman Large-Cap Growth Portfolio (new portfolio) 15.06* 5/1/99 - ------------------------------------------------------------------------------------------------------------------------ Seligman Global Growth Portfolio 44.88 24.94 -- -- 19.34 5/1/96 - ------------------------------------------------------------------------------------------------------------------------ Seligman Large-Cap Value Portfolio (9.59) -- -- -- (6.61) 5/1/98 - ------------------------------------------------------------------------------------------------------------------------ Seligman Common Stock Portfolio 6.09 16.56 18.94 13.71 13.82 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman International Growth Portfolio 19.40 13.80 11.52 -- 10.56 5/3/93 - ------------------------------------------------------------------------------------------------------------------------ Seligman Income Portfolio (4.03) 5.15 7.59 7.36 7.48 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman High-Yield Bond Portfolio (7.60) 1.88 -- -- 5.52 5/1/95 - ------------------------------------------------------------------------------------------------------------------------ Seligman Bond Portfolio (11.28) 1.03 3.97 4.31 4.33 6/21/88 - ------------------------------------------------------------------------------------------------------------------------ Seligman Cash Management Portfolio Current Yield 6.86%+ (1.86) 2.34 3.24 3.33 3.53 6/21/88 - ------------------------------------------------------------------------------------------------------------------------
* Not annualized. + Annualized for the seven-day period ending December 31, 1999. The current yield figure shown more closely reflects the current earnings of the Portfolio than total return figures. Although Seligman Cash Management Portfolio seeks to preserve the value of investments at $1.00 per share, it is possible to lose money by investing in the Portfolio. Trillium Fixed Account's rate for the one year Guarantee Period was 4.75% as of December 31, 1999. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The 3-, 5-, 7-, and 10-year Guarantee Periods are currently not approved in all states. Please call 800-221-2783 for state approval and the current rates on these Guarantee Periods. Issued by: Canada Life Insurance Company of America, 6201 Powers Ferry Road, N.W., Atlanta, GA 30339 Distributed by: Seligman Advisors, Inc., 100 Park Avenue, New York, NY 10017 . (800) 221-2783 Shares of the Trillium portfolios are not deposits or obligations of, or guaranteed or endorsed by, any bank. Shares are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other federal agency, and are subject to market fluctuations including possible loss of principal. Performance quoted represents past performance, and the investment return and principal value of an investment will fluctuate so that units, when surrendered, may be worth more or less than their original cost. Performance for Seligman Communications and Information and Seligman Global Technology Portfolios was achieved during a market favorable to companies in the technology sector. There can be no assurances that these Portfolios will continue consistently to achieve, by investing in initial public offerings or otherwise, substantially similar performance that the Portfolios had previously experienced. Performance of the variable portfolios reflects the performance of Seligman Portfolios, Inc., the underlying investment vehicle for the Trillium Variable Account, and is adjusted for Trillium's current fees and charges, including the maximum CDSC of 69%. Trillium's CDSC for current premiums (premiums paid during the current and previous six policy years) starts at 69% and decreases in steps, depending on the number of policy years since the premium was paid, as follows: less than two years, 69% at least two, but less than four, 59% at least four, but less than five, 49% at least five, but less than six, 39% at least six, but less than seven, 29% at least seven, no charge. The variable account commenced operations on 5/3/93. The fixed account is held in the general account of Canada Life Insurance Company of America (CLICA) and provides a guarantee, by CLICA, against loss of principal, and guarantees payment of a specified current rate of interest. Please contact your financial advisor or call Seligman Advisors at 800-221-2783 for a prospectus containing full details including information on fees and charges. Please read the prospectus carefully before investing or sending money. - -------------------------------------------------------------------------------- ANNUAL REPORT - -------------------------------------------------------------------------------- TRILLIUM A VARIABLE ANNUITY December 31, 1999 Total Returns* For the Year Ended December 31, 1999 Sub-Accounts: Bond ............................................................. (5.81)% Capital .......................................................... 51.20 Cash Management .................................................. 3.62 Common Stock ..................................................... 11.57 Communications and Information ................................... 83.24 Frontier ......................................................... 14.97 Global Growth .................................................... 50.37 Global Smaller Companies ......................................... 26.56 Global Technology ................................................ 115.77 High-Yield Bond .................................................. (2.13) Income ........................................................... 1.44 International Growth ............................................. 24.88 Large-Cap Growth ................................................. 20.46** Large-Cap Value .................................................. (4.12) Small-Cap Value .................................................. 33.38 _________________ * Total returns of the Sub-Accounts are based on the performance of the Seligman Portfolios, Inc., the underlying investment vehicle for the Canada Life of America Variable Annuity Account 2 (Variable Annuity Account 2), less current fees and charges. The returns exclude any contingent deferred sales charge ("CDSC") applicable to the Variable Annuity Account 2. ** From commencement of operations, May 1, 1999. Seligman Portfolios, Inc. the underlying investment vehicle for ________________________________________ TRILLIUM A Variable Annuity ________________________________________ ________________________________________ ________________________________________ February 7, 2000 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, Manager of Seligman Portfolios, Inc., the underlying investment vehicle for your Trillium Variable Annuity, and Canada Life Insurance Company of America, as issuer of The Canada Life of America Variable Annuity Account 2, are pleased to provide the enclosed audited financial statements and accompanying information for the fiscal year ended December 31, 1999. Performance and portfolio commentary are also provided for each of the Portfolios. The 20th century ended on an extraordinarily optimistic note for the US stock markets, with all major indices -- the Dow Jones Industrial Average, the S&P 500, and the NASDAQ -- at record highs. The broad-based S&P 500 had achieved a fifth consecutive year of greater than 20% returns -- a record-breaking run. Supporting these impressive markets was the US economic expansion -- now the longest in US history. Throughout 1999, unemployment stood at a near 30-year low, inflation remained tame, and consumer confidence soared. In addition, the global economy rebounded strongly. By year-end, the US and global economies were stronger than perhaps anyone had anticipated at the start of the year. Throughout 1999, the US economy showed no signs of slowing, triggering concerns regarding inflation. In response, the Federal Reserve Board has now increased the federal funds rate four times, leaving this key rate 100 basis points higher than it had been at year-end 1998. The Federal Reserve Board's skillful watch over the economy, both in its response to the worldwide crisis of 1998 and vigilance regarding inflation in 1999, has been a key contributor to the long-term health of this remarkable economy. While 1999 will certainly be remembered as a positive year for equity investors, it was also a year of sharp contrasts. Despite stellar performances by the popular indices, the market was extraordinarily narrow. Just over half the stocks in the S&P 500 had positive returns. The outsized returns of a few stocks also skewed the indices. Just seven stocks were responsible for half of the S&P 500's return; five of these were technology companies, with four of those delivering astounding triple-digit returns. Large-cap growth and technology companies continued to dominate, while value stocks lagged considerably. However, the market did show signs of a broadening trend, which we believe will continue; 1999 was the first year since 1994 that small- and mid-cap stocks delivered returns approaching those of large-caps. The markets also experienced a dramatic divergence between stocks and bonds. The bond markets experienced one of the worst years on record, and 30-year US government bond yields soared from 5.08% at the beginning of the year to 6.48% by the end of the year. Unfazed, the stock market hit several new highs. This sharp divergence cannot continue; our view is that interest rates will stabilize and equity price increases will be more modest. The past fiscal year was also characterized by significant divergence in the performances of international stock markets. Although the economic background was positive, increases in both short- and long-term interest rates around the world placed a drag on stock market performance. In general, markets in Europe rose modestly in US dollar terms, while stock markets in Asia -- including Japan - -- rose sharply as evidence mounted that the regional economic recovery was sustainable. Thank you for your continued support of Trillium. We look forward to continuing to serve your investment needs in the year 2000. Respectfully, /s/ Ronald E. Beettam /s/ William C. Morris Ronald E. Beettam William C. Morris President Chairman Canada Life Insurance Company of America J. & W. Seligman & Co. Incorporated -iv- Canada Life of America Variable Annuity Account 2 - -------------------------------------------------------------------------------- Statement of Net Assets December 31, 1999 - --------------------------------------------------------------------------------
Cash Common Communications Bond Capital Management Stock and Information Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Frontier ----------- ----------- ----------- ----------- --------------- -------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)................. $ 4,808,210 $26,692,333 $16,817,027 $45,616,674 $172,260,230 $20,946,622 Due from (to) Canada Life Insurance Company of America...................... 102,438 (36,414) 40,600 58,643 (220,348) (7,211) ----------- ----------- ----------- ----------- ------------ ----------- Net Assets.................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411 =========== =========== =========== =========== ============ =========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve..................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411 ----------- ----------- ----------- ----------- ------------ ----------- Net Assets.................... $ 4,910,648 $26,655,919 $16,857,627 $45,675,317 $172,039,882 $20,939,411 =========== =========== =========== =========== ============ =========== Number of Units Outstanding................. 299,153 474,940 11,215,405 1,020,957 3,821,257 970,283 =========== =========== =========== =========== ============ =========== Net Asset Value Per Unit...... $ 16.4152 $ 56.1248 $ 1.5031 $ 44.7377 $ 45.0218 $ 21.5807 =========== =========== =========== =========== ============ ===========
Global Global Smaller Global High-Yield Growth Companies Technology Bond Sub-Account Sub-Account Sub-Account Sub-Account Income Sub-Account ----------- ----------- ----------- ----------- ------ ----------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)................. $10,944,754 $18,741,951 $20,207,361 $24,996,057 $ 7,880,026 Due from (to) Canada Life Insurance Company of America...................... 16,451 37,943 (127,456) 230,046 573 ----------- ----------- ----------- ----------- ----------- Net Assets.................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599 =========== =========== =========== =========== =========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve..................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599 ----------- ----------- ----------- ----------- ----------- Net Assets.................... $10,961,205 $18,779,894 $20,079,905 $25,226,103 $ 7,880,599 =========== =========== =========== =========== =========== Number of Units Outstanding................. 558,642 996,611 569,543 1,903,614 340,851 =========== =========== =========== =========== =========== Net Asset Value Per Unit...... $ 19.6212 $ 18.8438 $ 35.2562 $ 13.2517 $ 23.1204 =========== =========== =========== =========== ===========
Large-Cap Large-Cap Small-Cap Growth Growth Value Value International Sub-Account Sub-Account Sub-Account Sub-Account Sub-Accounts Combined ----------- ----------- ----------- ----------- ------------ -------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)................. $ 9,869,838 $ 3,008,396 $ 5,610,326 $ 4,253,886 $392,653,691 Due from (to) Canada Life Insurance Company of America...................... (10,513) (37,703) (18,969) (166,405) (138,325) ----------- ----------- ----------- ----------- ------------ Net Assets.................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366 =========== =========== =========== =========== ============ NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve..................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366 ----------- ----------- ----------- ----------- ------------ Net Assets.................... $ 9,859,325 $ 2,970,693 $ 5,591,357 $ 4,087,481 $392,515,366 =========== =========== =========== =========== ============ Number of Units Outstanding................. 498,296 246,607 590,205 372,720 23,879,084 =========== =========== =========== =========== ============ Net Asset Value Per Unit...... $ 19.7861 $ 12.0463 $ 9.4736 $ 10.9666 =========== =========== =========== ============
______________ See accompanying notes.
- ---------------------------------------------------------------------------------------------------------------------- Statement of Operations For the Year Ended December 31, 1999 - ---------------------------------------------------------------------------------------------------------------------- Cash Common Communications Bond Capital Management Stock and Information Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Frontier ----------- ----------- ----------- ----------- ----------- -------- NET INVESTMENT INCOME: Dividend and capital gain distributions.......... $ 330,155 $ 5,991,515 $ 691,933 $ 9,489,021 $ 25,452,529 $ -- Less mortality and expense risk charges (Note 6)....... 72,701 269,393 193,759 630,094 1,618,310 309,166 ----------- ----------- ----------- ----------- ------------ ----------- Net Investment Income (loss)...................... 257,454 5,722,122 498,174 8,858,927 23,834,219 (309,166) ----------- ----------- ----------- ----------- ------------ ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments.............. (144,807) 1,347,782 -- 1,788,619 8,073,059 (1,417,941) Net unrealized appreciation (depreciation) of investments................. (426,084) 2,021,410 -- (5,762,124) 47,083,794 2,941,214 ----------- ----------- ----------- ----------- ------------ ----------- Net Realized and Unrealized Gain (Loss) on Investments................. (570,891) 3,369,192 -- (3,973,505) 55,156,853 1,523,273 ----------- ----------- ----------- ----------- ------------ ----------- Net Increase (Decrease) in Net Assets Resulting from Operations............. $ (313,437) $ 9,091,314 $ 498,174 $ 4,885,422 $ 78,991,072 $ 1,214,107 =========== =========== =========== =========== ============ ===========
Global Global Smaller Global High-Yield Growth Companies Technology Bond Sub-Account Sub-Account Sub-Account Sub-Account Income Sub-Account ----------- ----------- ----------- ----------- ------ ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions.......... $ 1,045,916 $ -- $ 1,720,843 $ 2,869,303 $ 969,966 Less mortality and expense risk charges (Note 6)....... 122,265 237,320 135,607 392,472 115,964 ----------- ----------- ----------- ----------- ------------ Net Investment Income (loss)...................... 923,651 (237,320) 1,585,236 2,476,831 854,002 ----------- ----------- ----------- ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments.............. 790,461 246,754 3,349,814 (1,389,315) (19,359) Net unrealized appreciation (depreciation) of investments................. 2,051,588 3,855,334 4,867,611 (1,657,637) (717,827) ----------- ----------- ----------- ----------- ------------ Net Realized and Unrealized Gain (Loss) on Investments................. 2,842,049 4,102,088 8,217,425 (3,046,952) (737,186) ----------- ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting from Operations............. $ 3,765,700 $ 3,864,768 $ 9,802,661 $ (570,121) $ 116,816 =========== =========== =========== =========== ============
Large-Cap Large-Cap Small-Cap Growth Growth Value Value International Sub-Account Sub-Account Sub-Account Sub-Account Sub-Accounts Combined ----------- ----------- ----------- ----------- ------------ -------- NET INVESTMENT INCOME: Dividend and capital gain distributions.......... $ 1,343,307 $ -- $ 65,583 $ 759,553 $ 50,729,624 Less mortality and expense risk charges (Note 6)....... 127,269 15,838 73,372 54,793 4,368,323 ----------- ----------- ----------- ----------- ------------ Net Investment Income (loss)...................... 1,216,038 (15,838) (7,789) 704,760 46,361,301 ----------- ----------- ----------- ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments.............. 488,026 15,637 28,971 181,803 13,339,504 Net unrealized appreciation (depreciation) of investments................. 322,636 484,748 (294,330) 36,494 54,806,827 ----------- ----------- ----------- ----------- ------------ Net Realized and Unrealized Gain (Loss) on Investments................. 810,662 500,385 (265,359) 218,297 68,146,331 ----------- ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting from Operations............. $ 2,026,700 $ 484,547 $ (273,148) $ 923,057 $114,507,632 =========== =========== =========== =========== ============
__________________ * For the period May 1, 1999 (commencement of operations) to December 31, 1999. See accompanying notes. -2- Canada Life of America Variable Annuity Account 2 - -------------------------------------------------------------------------------- Statements of Changes in Net Assets December 31, 1999 - --------------------------------------------------------------------------------
Bond Capital Cash Management Sub-Account Sub-Account Sub-Account ----------- ----------- ----------- Year Ended Year Ended Year Ended December 31, December 31, December 31, ------------ ------------ ------------ 1999 1998 1999 1998 1999 1998 ------------ ----------- ------------ ------------ ------------ ----------- OPERATIONS: Net investment income (loss)....... $ 257,454 $ 261,254 $ 5,722,122 $ 792,674 $ 498,174 $ 339,212 Net realized gain (loss) on investments....................... (144,807) 75,857 1,347,782 640,187 -- -- Net unrealized appreciation (depreciation) of investments..... (426,084) (24,918) 2,021,410 1,474,942 -- -- ----------- ----------- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting from Operations.. (313,437) 312,193 9,091,314 2,907,803 498,174 339,212 ----------- ----------- ------------ ------------ ------------ ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........ (48,827) 6,780 (453,005) 123,897 7,396,543 1,240,131 ----------- ----------- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions...................... (48,827) 6,780 (453,005) 123,897 7,396,543 1,240,131 ----------- ----------- ------------ ------------ ------------ ----------- Total Increase (Decrease) in Net Assets..................... (362,264) 318,973 8,638,309 3,031,700 7,894,717 1,579,343 Net Assets, Beginning of Period.... 5,272,912 4,953,939 18,017,610 14,985,910 8,962,910 7,383,567 ----------- ----------- ------------ ------------ ------------ ----------- Net Assets, End of Period.......... $ 4,910,648 $ 5,272,912 $ 26,655,919 $ 18,017,610 $ 16,857,627 $ 8,962,910 =========== =========== ============ ============ ============ ===========
Common Stock Information Frontier Sub-Account Sub-Account Sub-Account ----------- ------------ ----------- Year Ended Year Ended Year Ended December 31, December 31, December 31, ----------- ------------ ------------ Communications and 1999 1998 1999 1998 1999 1998 ----------- ----------- ------------ ------------ ------------ ----------- OPERATIONS: Net investment income (loss)....... $ 8,858,927 $ 2,679,016 $ 23,834,219 $ 2,724,807 $ (309,166) $ (477,598) Net realized gain (loss) on investments....................... 1,788,619 737,506 8,073,059 (9,244) (1,417,941) (30,358) Net unrealized appreciation (depreciation) of investments..... (5,762,124) 4,133,708 47,083,794 22,974,473 2,941,214 (588,267) ----------- ----------- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting from Operations.. 4,885,422 7,550,230 78,991,072 25,690,036 1,214,107 (1,096,223) ----------- ----------- ------------ ------------ ------------ ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........ (1,075,059) 1,806,531 (4,332,148) (2,309,026) (11,892,873) (2,173,725) ----------- ----------- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions...................... (1,075,059) 1,806,531 (4,332,148) (2,309,026) (11,892,873) (2,173,725) ----------- ----------- ------------ ------------ ------------ ----------- Total Increase (Decrease) in Net Assets..................... 3,810,363 9,356,761 74,658,924 23,381,010 (10,678,766) (3,269,948) Net Assets, Beginning of Period.... 41,864,954 32,508,193 97,380,958 73,999,948 31,618,177 34,888,125 ----------- ----------- ------------ ------------ ------------ ----------- Net Assets, End of Period.......... $45,675,317 $41,864,954 $172,039,882 $ 97,380,958 $ 20,939,411 $31,618,177 =========== =========== ============ ============ ============ ===========
Global Smaller Global Growth Companies Sub-Account Sub-Account ------------------------ -------------------------- Year Ended Year Ended December 31, December 31, ------------------------ -------------------------- 1999 1998 1999 1998 ----------- ----------- ------------ ------------ OPERATIONS: Net investment income (loss)....... $ 923,651 $ (45,233) $ (237,320) $ 2,687 Net realized gain (loss) on investments....................... 790,461 170,051 246,754 237,916 Net unrealized appreciation (depreciation) of investments..... 2,051,588 921,826 3,855,334 664,912 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting from Operations.. 3,765,700 1,046,644 3,864,768 905,515 ----------- ------------ ------------ ------------ CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........ (691,469) 2,080,972 (4,591,356) (950,338) ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Arising from Capital Transactions...................... (691,469) 2,080,972 (4,591,356) (950,338) ----------- ----------- ------------ ------------ Total Increase (Decrease) in Net Assets..................... 3,074,231 3,127,616 (726,588) (44,823) Net Assets, Beginning of Period.... 7,886,974 4,759,358 19,506,482 19,551,305 ----------- ------------ ------------ ------------- Net Assets, End of Period.......... $10,961,205 $ 7,886,974 $ 18,779,894 $ 19,506,482 =========== =========== ============ ============
Global Technology High-Yield Bond Income Sub-Account Sub-Account Sub-Account ------------------------- --------------------------- ----------------------------- Year Ended Year Ended Year Ended December 31, December 31, December 31, ------------------------- --------------------------- ----------------------------- 1999 1998 1999 1998 1999 1998 ----------- ----------- ------------ ------------ --------------- ----------- OPERATIONS: Net investment income (loss)....... $ 1,585,236 $ 168,834 $ 2,476,831 $ 2,241,555 $ 854,002 $ 358,180 Net realized gain (loss) on investments....................... 3,349,814 119,124 (1,389,315) 242,702 (19,359) 48,543 Net unrealized appreciation (depreciation) of investments..... 4,867,611 960,333 (1,657,637) (2,787,854) (717,827) 120,665 ----------- ----------- ------------ ------------ --------------- ----------- Net Increase (Decrease) in Net Assets Resulting from Operations.. 9,802,661 1,248,291 (570,121) (303,597) 116,816 527,388 ----------- ----------- ------------ ------------ --------------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........ 5,006,209 729,244 (5,068,977) 8,452,975 (1,222,331) 178,197 ----------- ----------- ------------ ------------ --------------- ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions...................... 5,006,209 729,244 (5,068,977) 8,452,975 (1,222,331) 178,197 ----------- ----------- ------------ ------------ --------------- ----------- Total Increase (Decrease) in Net Assets..................... 14,808,870 1,977,535 (5,639,098) 8,149,378 (1,105,515) 705,585 Net Assets, Beginning of Period.... 5,271,035 3,293,500 30,865,201 22,715,823 8,986,114 8,280,529 ----------- ----------- ------------ ------------ --------------- ----------- Net Assets, End of Period.......... $20,079,905 $ 5,271,035 $ 25,226,103 $ 30,865,201 $ 7,880,599 $ 8,986,114 =========== =========== ============ ============ =============== ===========
International Growth Large-Cap Growth Large-Cap Value Sub-Account Sub-Account Sub-Account ----------- ----------- ----------- Year Ended 5/1/99* Year Ended 5/1/98* December 31, to December 31, to 1999 1998 12/31/99 1999 12/31/98 ----------- ----------- ------------ ------------ --------------- OPERATIONS: Net investment income (loss)............... $ 1,216,038 $ 52,265 $ (15,838) $ (7,789) $ 93,225 Net realized gain (loss) on investments............................... 488,026 302,886 15,637 28,971 (39,349) Net unrealized appreciation (depreciation) of investments............. 322,636 852,183 484,748 (294,330) 109,072 ----------- ----------- ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting from Operations.......... 2,026,700 1,207,334 484,547 (273,148) 162,948 ----------- ----------- ------------ ------------ ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)................ (1,534,864) (645,302) 2,486,146 2,286,079 3,415,478 ----------- ----------- ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions.............................. (1,534,864) (645,302) 2,486,146 2,286,079 3,415,478 ----------- ----------- ------------ ------------ ----------- Total Increase (Decrease) in Net Assets............................. 491,836 562,032 2,970,693 2,012,931 3,578,426 Net Assets, Beginning of Period............ 9,367,489 8,805,457 -- 3,578,426 -- ----------- ----------- ------------ ------------ ----------- Net Assets, End of Period.................. $ 9,859,325 $ 9,367,489 $ 2,970,693 $ 5,591,357 $ 3,578,426 =========== =========== ============ ============ ===========
Small-Cap Value Sub-Accounts Sub-Account Combined ------------------------- --------------------------- Year Ended Year Ended 5/1/98* December 31, December 31, to --------------------------- 1999 12/31/98 1999 1998 ----------- ----------- ------------ ------------ OPERATIONS: Net investment income (loss)....... $ 704,760 $ 232,466 $ 46,361,301 $ 9,423,344 Net realized gain (loss) on investments....................... 181,803 (82,801) 13,339,504 2,413,020 Net unrealized appreciation (depreciation) of investments..... 36,494 (34,480) 54,806,827 28,776,595 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting from Operations.. 923,057 115,185 114,507,632 40,612,959 ----------- ----------- ------------ ------------ CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........ 955,227 2,094,012 (12,780,705) 14,049,826 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Arising from Capital Transactions...................... 955,227 2,094,012 (12,780,705) 14,049,826 ----------- ----------- ------------ ------------ Total Increase (Decrease) in Net Assets..................... 1,878,284 2,209,197 101,726,927 54,662,785 Net Assets, Beginning of Period.... 2,209,197 -- 290,788,439 236,125,654 ----------- ----------- ------------ ------------ Net Assets, End of Period.......... $ 4,087,481 $ 2,209,197 $392,515,366 $290,788,439 =========== =========== ============ ============
____________ * Commencement of operations. See accompanying notes. --5-- Canada Life of America Variable Annuity Account 2 - -------------------------------------------------------------------------------- Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Organization Canada Life of America Variable Annuity Account 2 ("Variable Annuity Account 2") was established on February 26, 1993 as a separate investment account of Canada Life Insurance Company of America ("CLICA") to receive and invest premium payments under variable annuity policies issued by CLICA. Variable Annuity Account 2 is registered as a unit investment trust under the Investment Company Act of 1940, as amended. The assets of Variable Annuity Account 2 are invested in the shares of Seligman Portfolios, Inc. (the "Fund"), a diversified, open- end, management investment company. Variable Annuity Account 2 has fifteen sub- accounts, each of which invests only in the shares of the corresponding portfolio of the Fund. The assets of Variable Annuity Account 2 are the property of CLICA. The portion of Variable Annuity Account 2 assets applicable to the policies will not be charged with liabilities arising out of any other business CLICA may conduct. 2. Significant Accounting Policies Investments Investments in shares of the Fund are valued at the reported net asset values of the respective portfolios. Realized gains and losses are computed on the basis of average cost. The difference between cost and current market value of investments owned is recorded as an unrealized gain or loss on investments. Dividends and Capital Gain Distributions Dividends and capital gain distributions are recorded on the ex-dividend date and reflect the dividends declared by the Fund from their accumulated net investment income and net realized investment gains. Except for the Cash Management Portfolio, whose dividends are declared daily and paid monthly, dividends and capital gain distributions are declared and paid annually. Dividends and capital gain distributions paid to the Variable Annuity Account 2 are reinvested in additional shares of the respective portfolio of the Fund at the net asset value per share. Federal Income Taxes Variable Annuity Account 2 is not taxed separately because the operations of Variable Annuity Account 2 will be included in the federal income tax return of CLICA, which is taxed as a "life insurance company" under the provisions of the Internal Revenue Code. 3. Investments The investment by Variable Annuity Account 2 in the individual portfolios of the Fund at December 31, 1999, is as follows:
Number of Shares Market Price Market Value Cost ---------------- ------------ ------------ ---- Bond 518,685 $ 9.27 $ 4,808,210 $ 5,276,462 Capital 1,116,834 23.90 26,692,333 22,200,005 Cash Management 16,817,027 1.00 16,817,027 16,817,027 Common Stock 2,746,338 16.61 45,616,674 48,463,227 Communications and Information 6,451,694 26.70 172,260,230 109,235,845 Frontier 1,155,357 18.13 20,946,622 17,264,417 Global Growth 600,700 18.22 10,944,754 7,807,514 Global Smaller Companies 1,072,194 17.48 18,741,951 14,223,260 Global Technology 736,957 27.42 20,207,361 14,649,674 High-Yield Bond 2,606,471 9.59 24,996,057 29,179,989 Income 795,159 9.91 7,880,026 8,604,612 International Growth 593,496 16.63 9,869,838 8,297,431 Large-Cap Growth 247,401 12.16 3,008,396 2,523,648 Large-Cap Value 604,561 9.28 5,610,326 5,795,584 Small-Cap Value 526,471 8.08 4,253,886 4,251,872 ---------- --------- ------------ ------------ $392,653,691 $314,590,567 ============ ============
4. Security Purchases and Sales The aggregate cost of purchases and the proceeds from sales of investments are presented below:
Aggregate Cost of Purchases Proceeds from Sales --------------------------- ------------------- Bond $ 3,826,276 $ 3,751,874 Capital 13,889,025 8,681,988 Cash Management 43,166,244 35,395,276 Common Stock 27,060,996 19,591,198 Communications and Information 50,054,207 30,952,174 Frontier 11,982,334 24,371,953 Global Growth 3,730,334 3,556,286 Global Smaller Companies 2,141,143 7,133,175 Global Technology 23,539,594 16,853,432 High-Yield Bond 14,911,889 17,909,850 Income 2,556,593 2,981,872 International Growth 2,547,173 2,925,162 Large-Cap Growth 2,678,782 170,771 Large-Cap Value 4,746,946 2,465,419 Small-Cap Value 3,762,411 1,943,397 ------------ ------------ $210,593,947 $178,683,827 ============ ============
Canada Life of America Variable Annuity Account 2 5. Summary of Changes from Unit Transactions The following table represents a summary of changes from unit transactions attributable to contract holders for the periods indicated. The Large-Cap Growth Sub-Account commenced operations on May 1, 1999.
Year Ended December 31, 1999 Year Ended December 31, 1998 ----------------------------- ---------------------------- Units Amount Units Amount ------------ ------------ ---------- ------------- Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 322,587 $ 5,568,576 290,989 $ 4,955,129 Terminated contracts and net transfers out (325,992) (5,617,403) (291,727) (4,948,349) ----------- ------------ ----------- ------------ (3,405) (48,827) (738) 6,780 ----------- ------------ ----------- ------------ Capital Sub-Account Accumulation Units: Contract purchases and net transfers in 299,549 11,994,851 476,675 15,080,911 Terminated contracts and net transfers out (310,008) (12,447,856) (477,721) (14,957,014) ----------- ------------ ----------- ------------ 10,459 (453,005) (1,046) 123,897 ----------- ------------ ----------- ------------ Cash Management Sub-Account Accumulation Units: Contract purchases and net transfers in 40,947,833 60,392,520 28,701,853 40,888,881 Terminated contracts and net transfers out (35,911,189) (52,995,977) (27,814,834) (39,648,750) ----------- ------------ ----------- ------------ 5,036,644 7,396,543 887,019 1,240,131 ----------- ------------ ----------- ------------ Common Stock Sub-Account Accumulation Units: Contract purchases and net transfers in 585,115 24,933,937 584,818 21,245,552 Terminated contracts and net transfers out (608,245) (26,008,996) (533,311) (19,439,021) ----------- ------------ ----------- ------------ (23,130) (1,075,059) 51,507 1,806,531 ----------- ------------ ----------- ------------ Communications and Information Sub-Account Accumulation Units: Contract purchases and net transfers in 1,216,263 35,884,214 1,336,799 26,057,001 Terminated contracts and net transfers out 1,358,367) (40,216,362) (1,426,919) (28,366,027) ----------- ------------ ----------- ------------ (142,104) (4,332,148) (90,120) (2,309,026) ----------- ------------ ----------- ------------ Frontier Sub-Account Accumulation Units: Contract purchases and net transfers in 848,373 14,699,046 920,590 17,444,970 Terminated contracts and net transfers out (1,562,533) (26,591,919) (1,042,222) (19,618,695) ----------- ------------ ----------- ------------ (714,160) (11,892,873) (121,632) (2,173,725) ----------- ------------ ----------- ------------ Global Growth Sub-Account Accumulation Units: Contract purchases and net transfers in 514,496 7,656,906 601,646 7,353,393 Terminated contracts and net transfers out (560,299) (8,348,375) (434,558) (5,272,421) ----------- ------------ ----------- ------------ (45,803) (691,469) 167,088 2,080,972 ----------- ------------ ----------- ------------ Global Smaller Companies Sub-Account Accumulation Units: Contract purchases and net transfers in 487,918 7,603,927 479,301 7,291,622 Terminated contracts and net transfers out (801,390) (12,195,283) (549,248) (8,241,960) ----------- ------------ ----------- ------------ (313,472) (4,591,356) (69,947) (950,338) ----------- ------------ ----------- ------------ Global Technology Sub-Account Accumulation Units: Contract purchases and net transfers in 1,084,404 24,282,406 406,018 5,711,409 Terminated contracts and net transfers out (837,452) (19,276,197) (355,334) (4,982,165) ----------- ------------ ----------- ------------ 246,952 5,006,209 50,684 729,244 ----------- ------------ ----------- ------------ High-Yield Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 1,232,239 16,959,707 1,589,267 22,003,390 Terminated contracts and net transfers out (1,608,165) (22,028,684) (980,942) (13,550,415) ----------- ------------ ----------- ------------ (375,926) (5,068,977) 608,325 8,452,975 ----------- ------------ ----------- ------------
--7-- Canada Life of America Variable Annuity Account 2 - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - --------------------------------------------------------------------------------
Year Ended December 31, 1999 Year Ended December 31, 1998 ---------------------------- ---------------------------- Units Amount Units Amount ----------- ------------- ------------- ------------ Income Sub-Account Accumulation Units: Contract purchases and net transfers in 116,816 $ 2,770,238 145,220 $ 3,209,039 Terminated contracts and net transfers out (170,231) (3,992,569) (136,996) (3,030,842) ----------- ----------- ------------ ------------ (53,415) (1,222,331) 8,224 178,197 ----------- ----------- ------------ ------------ International Growth Sub-Account Accumulation Units: Contract purchases and net transfers in 192,473 3,273,321 234,066 3,590,169 Terminated contracts and net transfers out (285,428) (4,808,185) (277,507) (4,235,471) ----------- ----------- ------------ ------------ (92,955) (1,534,864) (43,441) (645,302) ----------- ----------- ------------ ------------ Large-Cap Growth Sub-Account* Accumulation Units: Contract purchases and net transfers in 254,809 2,574,416 -- -- Terminated contracts and net transfers out (8,202) (88,270) -- -- ----------- ----------- ------------ ------------ 246,607 2,486,146 -- -- ----------- ----------- ------------ ------------ Large-Cap Value Sub-Account Accumulation Units: Contract purchases and net transfers in 693,579 6,974,655 470,789 4,426,163 Terminated contracts and net transfers out (465,548) (4,688,576) (108,615) (1,010,685) ----------- ----------- ------------ ------------ 228,031 2,286,079 362,174 3,415,478 ----------- ----------- ------------ ------------ Small-Cap Value Sub-Account* Accumulation Units: Contract purchases and net transfers in 508,816 5,203,249 362,710 2,860,882 Terminated contracts and net transfers out (404,793) (4,248,022) (94,013) (766,870) ----------- ----------- ------------ ------------ 104,023 955,227 268,697 2,094,012 =========== =========== ============ ============ Net increase (decrease) from unit transactions $(12,780,705) $ 14,049,826 ============ ============
__________________ * From commencement of operations. 6. Mortality and Expense Risk (M and E) Charges CLICA assumes mortality and expense risks related to the operations of Variable Annuity Account 2 and deducts a charge equal to an effective annual rate of 1.25% of the net asset value of each Sub-Account at each valuation period. In addition, at each valuation period an effective annual rate of 0.15% of the net asset value of each Sub-Account was deducted as daily administration fees. 7. Net Assets Net assets at December 31, 1999, consisted of the following:
Accumulated Net Net Investment Realized Unrealized Accumulated Income Gain (Loss) (Depreciation) Appreciation Combined Unit M and E and Capital on of Net Sub-Account Transactions Charges Gains Investments Investments Assets - --------------------------------------------------------------------------------------------------------------------------------- Bond $ 4,479,553 $ (249,973) $ 1,210,252 $ (60,932) $ (468,252) $ 4,910,648 Capital 11,411,808 (849,979) 9,019,763 2,581,999 4,492,328 26,655,919 Cash Management 15,390,200 (663,657) 2,131,084 -- -- 16,857,627 Common Stock 25,232,296 (1,863,480) 21,926,017 3,227,037 (2,846,553) 45,675,317 Communications and Information 53,408,336 (4,663,265) 50,620,608 9,649,818 63,024,385 172,039,882 Frontier 12,716,961 (1,558,958) 6,306,959 (207,756) 3,682,205 20,939,411 Global Growth 5,907,643 (267,513) 1,144,797 1,039,038 3,137,240 10,961,205 Global Smaller Companies 12,231,009 (982,656) 2,062,353 950,497 4,518,691 18,779,894 Global Technology 8,692,448 (237,827) 2,404,704 3,662,893 5,557,687 20,079,905 High-Yield Bond 23,109,119 (1,159,632) 8,064,833 (604,285) (4,183,932) 25,226,103 Income 5,608,919 (533,627) 3,447,909 81,984 (724,586) 7,880,599 International Growth 5,526,222 (505,213) 2,104,479 1,161,430 1,572,407 9,859,325 Large-Cap Growth 2,486,146 (15,838) -- 15,637 484,748 2,970,693 Large-Cap Value 5,701,557 (87,890) 173,326 (10,378) (185,258) 5,591,357 Small-Cap Value 3,049,239 (64,381) 1,001,607 99,002 2,014 4,087,481 ------------ ------------ ------------ ----------- ----------- ------------ $194,951,456 $(13,703,889) $111,618,691 $21,585,984 $78,063,124 $392,515,366 ============ ============ ============ =========== =========== ============
8. Unit Values Unit Values as reported are calculated by dividing total net assets by total units for each Sub-Account. --8-- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Report of Independent Auditors - ------------------------------------------------------------------------------- Board of Directors of Canada Life Insurance Company of America and Contract Owners of Canada Life of America Variable Annuity Account 2 We have audited the accompanying statement of net assets of Canada Life of America Variable Annuity Account 2 (comprising, respectively, the Bond, Capital, Cash Management, Common Stock, Communications and Information, Frontier, Global Growth, Global Smaller Companies, Global Technology, High-Yield Bond, Income, International Growth, Large-Cap Growth, Large-Cap Value and Small-Cap Value Sub- Accounts) as of December 31, 1999, and the related statements of operations and changes in net assets for the periods indicated therein. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements 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, 1999, by correspondence with the custodian. 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 referred to above present fairly, in all material respects, the financial position of each of the respective sub-accounts constituting the Canada Life of America Variable Annuity Account 2 at December 31, 1999, and the results of their operations and the changes in their net assets for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Atlanta, Georgia February 2, 2000 --9-- THIS PAGE INTENTIONALLY LEFT BLANK. Seligman Portfolios, Inc. Portfolio Overview LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999
Principal Amount or Shares Holdings ----------------------- Additions Increase 12/31/99 - ------------------------- SELIGMAN BOND PORTFOLIO Mortgage-Backed Securities FNMA 6 1/2%, 4/29/2009............. $160,000 $ 160,000 FHLMC GOLD 6%, 11/1/2010........... 80,329 80,329 Corporate Bonds Allstate 7.20%, 12/1/2009.......... 75,000 75,000 American Home Products 7.90%, 2/15/2005......................... 75,000 75,000 Bank of New York 7.30%, 12/1/2009.. 75,000 75,000 Delta Air Lines 7.70%, 12/15/2005.. 75,000 75,000 Lyondell Chemicals 9 5/8%, 5/1/2007.......................... 100,000 100,000 Asset-Backed Securities PP&L Transition 6.83%, 3/25/2007... 75,000 75,000 US West Communications 7.20%, 11/1/2004......................... 75,000 75,000 Wal-Mart Stores 6.55%, 8/10/2004... 85,000 85,000
Principal Amount or Shares -------------------- Holdings Reductions Decrease 12/31/99 - -------------------------- -------- -------- US Government and Government Agency US Treasury Bonds: 8 3/4%, 5/15/2020................. $200,000 $ 300,000 7 1/4%, 8/15/2022................. 300,000 200,000 US Treasury Notes 6 1/4%, 10/31/2001................ 200,000 -- Mortgage-Backed Securities FNMA 5.795%, 1/1/2009.............. 149,321 -- Corporate Bonds Boston Scientific 6 5/8%, 3/15/2005......................... 75,000 100,000 Chrysler Financial 6.09%, 4/6/2001.......................... 200,000 -- Enron Oil & Gas 6%, 12/15/2008..... 100,000 -- Equifax 6.30%, 7/1/2005............ 100,000 -- National City 6 7/8%, 5/15/2019.... 100,000 -- Sprint Capital 6 1/8%, 11/15/2008.. 200,000 -- SELIGMAN CAPITAL PORTFOLIO Common Stocks Avery Dennison..................... 7,300 shs. 7,300 shs. BMC Software....................... 5,500 5,500 Cadence Design Systems............. 31,200 31,200 Concord............................ 16,500 16,500 Limited............................ 13,400 13,400 Nucor.............................. 8,200 8,200 Quintiles Transnational............ 11,000 11,000 Reader's Digest Association........ 10,600 10,600 Royal Caribbean Cruises............ 8,600 8,600 Symbol Technologies................ 10,300 12,100 Common Stocks Anadarko Petroleum................. 13,500 shs. -- Apollo Group (Class A)............. 19,400 -- Applied Power (Class A)............ 14,600 -- Comdisco........................... 22,300 -- General Instrument................. 10,600 -- Infinity Broadcasting (Class A).... 23,000 -- Molex.............................. 12,000 5,700 shs. Sealed Air......................... 9,200 -- Snyder Communications.............. 20,100 -- Williams-Sonoma.................... 11,800 4,500 SELIGMAN COMMON STOCK PORTFOLIO Common Stocks Agilent Technologies............... 7,000 7,000 Bank of America.................... 6,234 18,339 Clorox............................. 6,300 13,600 (1) Gillette........................... 13,300 13,300 Merrill Lynch...................... 6,700 6,700 Nortel Networks.................... 5,100 5,100 Pitney Bowes....................... 9,000 9,000 Procter & Gamble................... 1,900 7,200 Raytheon (Class B)................. 7,200 15,100 Williams Companies................. 7,300 26,900 Common Stocks Bristol-Myers Squibb............... 7,800 8,200 Citigroup.......................... 10,307 17,500 DQE................................ 12,700 -- Fort James......................... 14,300 -- General Electric................... 4,400 12,100 Honeywell International(2)......... 7,000 7,300 Microsoft.......................... 3,300 18,800 Pharmacia & Upjohn................. 10,000 -- Sonat.............................. 20,700 -- Washington Mutual.................. 17,296 --
- -------------------- See footnotes on page P-9. --P-1-- Seligman Portfolios, Inc. Portfolio Overview (continued) LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999 Shares ------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO Common Stocks AMFM(3).............................................. 24,800 122,500 Charter Communications............................... 91,800 91,800 Compuware............................................ 58,000 106,600 Intel................................................ 40,300 40,300 Micron Technology.................................... 40,100 40,100 Microsoft............................................ 25,400 66,900 Rational Software.................................... 50,900 50,900 Sungard Data Systems................................. 76,900 97,600 Synopsys............................................. 29,000 96,400 Xircom............................................... 35,100 35,100 Shares ------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks ASM Lithography...................................... 25,100 -- BMC Software......................................... 20,100 15,300 Check Point Software Technologies.................... 31,400 37,800 Clear Channel Communications......................... 31,400 9,200 Comdisco............................................. 47,200 26,700 Electronic Arts...................................... 36,500 10,100 KLA-Tencor........................................... 32,200 12,100 MediaOne Group....................................... 23,500 45,400 Solectron (15)....................................... 87,500 -- Tellabs.............................................. 20,600 -- SELIGMAN FRONTIER PORTFOLIO Common Stocks Apex(4).............................................. 10,700 10,700 CBT Group (ADRs)..................................... 7,100 7,100 CSG Systems International............................ 10,100 10,100 Engage Technologies.................................. 6,600 6,600 Hadco................................................ 3,800 3,800 Inet Technologies.................................... 3,100 3,100 NOVA................................................. 9,700 23,033 Pegasus Communications............................... 3,300 3,300 US Foodservice....................................... 7,900 33,100 (5) Xpedior.............................................. 7,300 7,300 Common Stocks Analog Devices....................................... 9,100 -- ANTEC................................................ 15,200 -- AVX.................................................. 16,000 9,700 Burr-Brown........................................... 17,000 24,075 (6) Calpine.............................................. 10,200 -- KLA-Tencor........................................... 5,000 -- Microchip Technology................................. 8,300 5,600 Novellus Systems..................................... 4,800 -- PMC-Sierra........................................... 4,400 1,400 Sanmina.............................................. 5,900 -- SELIGMAN GLOBAL GROWTH PORTFOLIO Common Stocks America Online....................................... 800 2,800 (8) BMC Software......................................... 2,700 2,700 Cintas............................................... 2,100 3,700 Coca-Cola............................................ 1,200 1,200 Compuware............................................ 6,000 6,000 Corning.............................................. 1,800 1,800 MCI Worldcom......................................... 1,400 3,150 (7) Meitec............................................... 2,300 2,300 Numico............................................... 2,650 2,650 Touei Housing........................................ 2,000 2,000 Common Stocks Alza................................................. 3,200 -- AT&T................................................. 3,150 -- Honeywell International (2).......................... 2,300 -- Kadokawa Shoten Publishing........................... 400 -- Merck................................................ 1,400 -- NTT Mobile Communications............................ 7 3 Nuevo Grupo Iusacell (9)............................. 6,000 -- Phillip Morris....................................... 3,200 -- Sidel................................................ 765 -- Valeo................................................ 1,430 -- _____________________ See footnotes on page P-9 --P-2-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO DIVERSIFICATION OF NET ASSETS*
December 31, 1999 Percent of Net Assets December 31, --------------------- -------------- Issues Cost Value 1999 1998 -------- ---------- ----------- ------ ------ Common Stocks Aerospace......................................................... -- -- -- -- 0.6 Automotive and Related............................................ 1 $ 78,503 $ 116,971 1.0 3.2 Business Goods and Services....................................... 6 571,412 878,581 7.4 9.1 Capital Goods..................................................... -- -- -- -- 0.5 Commercial Services............................................... 2 125,154 161,850 1.4 0.2 Communications Services........................................... 1 48,300 60,375 0.5 -- Computer and Technology Related................................... 13 1,085,207 2,247,568 18.9 6.2 Construction and Property......................................... 2 121,115 119,784 1.0 2.1 Consumer Goods and Services....................................... 7 437,523 619,051 5.2 8.6 Consumer Staples.................................................. 1 71,910 69,900 0.6 -- Diversified....................................................... 4 363,765 646,909 5.4 3.3 Drugs and Health Care............................................. 7 556,374 642,775 5.4 11.6 Electric and Gas Utilities........................................ 1 98,349 186,875 1.6 1.7 Electronics....................................................... 3 200,132 482,934 4.1 4.3 Electronics Capital Equipment..................................... 1 32,385 202,252 1.7 1.0 Entertainment and Leisure......................................... 6 387,146 437,273 3.7 4.9 Financial Services................................................ 11 659,626 1,027,916 8.6 7.2 Industrial Goods and Services..................................... 2 134,260 98,877 0.8 1.0 Manufacturing and Industrial Equipment............................ 2 122,518 75,530 0.6 1.1 Media............................................................. 1 136,588 262,144 2.2 2.0 Resources......................................................... 1 125,181 132,825 1.1 0.6 Restaurants....................................................... 1 100,508 94,303 0.8 1.2 Retailing......................................................... 6 447,138 411,870 3.5 7.5 Support Services.................................................. 1 28,746 17,933 0.2 0.2 Telecommunications................................................ 17 990,960 2,450,386 20.6 11.4 Tobacco........................................................... 1 104,447 92,992 0.8 3.3 Transportation.................................................... 1 119,418 145,241 1.2 1.2 ------ ---------- ----------- ------ ------ 99 7,146,665 11,683,115 98.3 94.0 Other Assets Less Liabilities..................................... -- 205,638 205,638 1.7 6.0 ------ ---------- ----------- ------ ------ Net Assets........................................................ 99 $7,352,303 $11,888,753 100.0 100.0 ====== ========== =========== ====== ======
SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999 Shares -------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- Common Stocks Apex (4)........................................ 2,200 2,700 Clarica Life Insurance.......................... 4,500 4,500 CSG Systems International....................... 2,900 2,900 Engage Technologies............................. 2,200 2,200 Kamps........................................... 1,264 1,264 Mandator ....................................... 16,311 16,311 MemberWorks..................................... 2,000 4,800 NOVA............................................ 2,400 6,218 Tecis Holding................................... 710 2,340 (10) Xpedior......................................... 2,200 2,200 Shares -------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks ANTEC........................................... 3,900 -- AVX............................................. 4,800 2,900 Burr-Brown...................................... 4,100 6,750 (11) Calpine......................................... 2,500 -- Capital Radio .................................. 20,500 -- CMG............................................. 8,500 -- Cobham.......................................... 8,950 -- Fujitsu Business Systems........................ 2,500 -- Green Property.................................. 110,000 -- Sankyo.......................................... 2,600 -- ________________________ See footnotes on page P-9. --P-3-- Seligman Portfolios, Inc. Portfolio Overview (continued) SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO DIVERSIFICATION OF NET ASSETS*
December 31, 1999 Percent of Net Assets December 31, ---------------------------------- -------------- Issues Cost Value 1999 1998 -------- ----------- ----------- ------ ------ Common and Preferred Stocks Advertising....................................................... 1 $ 24,853 $ 60,727 0.3 1.2 Automotive Parts Manufacturing.................................... 4 200,365 272,790 1.4 1.5 Building Materials................................................ -- -- -- -- 0.7 Business Services................................................. 18 1,367,257 1,771,639 9.0 11.6 Cable Systems and Satellite Video................................. 1 55,313 87,188 0.4 -- Capital Goods..................................................... 3 139,848 109,762 0.6 1.8 Chemicals......................................................... 3 238,361 209,194 1.1 1.1 Communications Infrastructure..................................... 1 34,835 26,187 0.1 -- Computer Software................................................. 26 1,279,840 2,916,415 14.9 5.3 Construction and Property......................................... 10 749,418 738,695 3.8 6.0 Consulting Services............................................... 2 54,880 89,469 0.5 -- Consumer Goods and Services....................................... 18 1,093,765 1,254,804 6.4 8.8 Contract Manufacturing/Circuit Boards............................. 1 52,017 56,100 0.3 -- Distribution...................................................... 1 48,470 36,622 0.2 0.5 Drugs and Health Care............................................. 17 1,040,449 924,360 4.7 7.9 Electric Utilities................................................ 1 22,483 25,230 0.1 1.9 Electrical Distribution........................................... 1 47,169 129,772 0.7 0.3 Electronics....................................................... 17 445,060 1,004,651 5.1 2.9 Energy............................................................ 4 178,955 198,635 1.0 0.7 Financial Services................................................ 15 702,475 786,292 4.0 2.9 Industrial Goods and Services..................................... 3 269,182 475,248 2.4 3.3 Leisure and Hotels................................................ 3 124,989 169,627 0.9 2.3 Manufacturing..................................................... 18 993,431 1,222,811 6.2 5.7 Media............................................................. 10 716,837 1,412,938 7.2 7.1 Medical Products and Technology................................... 11 341,903 392,818 2.0 3.6 Metals............................................................ 1 43,380 40,708 0.2 0.3 Paper and Printing................................................ 4 192,985 151,525 0.8 0.3 Resources......................................................... 2 76,007 69,880 0.4 0.3 Restaurants....................................................... 3 173,709 296,112 1.5 1.5 Retailing......................................................... 14 915,321 888,980 4.5 5.6 Schools........................................................... 3 234,106 173,625 0.9 0.1 Support Services.................................................. 1 29,048 50,231 0.3 2.2 Technology........................................................ 15 816,708 1,380,799 7.1 5.6 Telecommunications................................................ 13 681,491 1,056,355 5.4 2.2 Transportation.................................................... 9 416,909 578,808 3.0 2.4 Veterinary Products............................................... 1 112,069 139,610 0.7 1.0 Miscellaneous..................................................... 1 24,550 26,987 0.1 0.1 ----- ----------- ----------- ------ ------ 256 13,938,438 19,225,594 98.2 98.7 Other Assets Less Liabilities..................................... -- 343,052 343,052 1.8 1.3 ----- ----------- ----------- ------ ------ Net Assets........................................................ 256 $14,281,490 $19,568,646 100.0 100.0 ===== =========== =========== ====== ======
______________________ See footnotes on page P-9. --P-4-- Seligman Portfolios, Inc. SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999 Shares --------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- Common Stocks Adaptec........................................ 4,300 5,700 Advantest...................................... 2,000 2,000 Compuware...................................... 8,500 11,400 Microsoft...................................... 2,100 4,600 Novellus Systems............................... 2,900 4,000 Rohm........................................... 1,000 1,000 Sony........................................... 2,000 2,000 Symantec....................................... 5,700 5,700 TDK............................................ 2,000 2,000 Vodafone....................................... 35,000 35,000 Shares --------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks ASM Lithography................................ 1,400 2,600 Comdisco....................................... 2,700 -- Invensys....................................... 26,000 -- KLA-Tencor..................................... 2,200 -- Merkantildata.................................. 9,000 -- Misys.......................................... 18,900 -- NEC............................................ 5,000 -- Rhone Poulenc.................................. 1,200 -- SBS Broadcasting............................... 1,600 -- Solectron (15)................................. 3,600 -- DIVERSIFICATION OF NET ASSETS*
December 31, 1999 Percent of Net Assets December 31, ---------------------------------- --------------- Issues Cost Value 1999 1998 -------- ----------- ----------- ------ ------ Common Stocks Cable Systems and Satellite Video................................. 1 $ 54,805 $ 96,115 0.4 -- Communications Infrastructure..................................... 1 260,345 316,349 1.4 -- Computer and Business Services.................................... 24 1,096,887 1,776,827 8.1 11.2 Computer Hardware/Peripherals..................................... 6 935,968 1,244,615 5.6 12.0 Computer Software................................................. 5 2,684,354 4,721,991 21.4 22.7 Contract Manufacturing/Circuit Boards............................. 6 455,407 683,815 3.1 3.3 Distributors...................................................... -- -- -- -- 0.8 Electronics....................................................... 4 1,634,514 3,441,361 15.6 11.7 Electronics Capital Equipment..................................... 14 1,509,007 2,903,357 13.2 4.3 Machinery and Equipment........................................... 11 73,142 205,872 0.9 2.4 Manufacturing..................................................... 1 216,546 173,780 0.8 -- Media............................................................. 2 192,506 185,375 0.8 2.7 Medical Products and Technology................................... 2 59,312 74,822 0.3 4.2 Networking/Communications Infrastructure.......................... -- -- -- -- 4.0 Semiconductors.................................................... 1 1,915,149 3,416,570 15.5 5.4 Telecommunications................................................ 14 1,394,332 2,362,885 10.7 8.3 Miscellaneous..................................................... -- -- -- -- 0.6 ------ ----------- ----------- ------ ------ 92 12,482,274 21,603,734 97.8 93.6 Other Assets Less Liabilities..................................... -- 483,613 483,613 2.2 6.4 ------ ----------- ----------- ------ ------ Net Assets........................................................ 92 $12,965,887 $22,087,347 100.0 100.0 ====== =========== =========== ====== ======
_____________________ See footnotes on page P-9. --P-5-- Seligman Portfolios, Inc. Portfolio Overview (continued) LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999
Principal Amount or Shares ----------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- SELIGMAN HIGH-YIELD BOND PORTFOLIO Corporate Bonds Abraxas Petroleum 11 1/2%, 11/1/2004.......................................... $105,000 $105,000 Allied Waste North America 10%, 8/1/2009........................................... 375,000 375,000 Exodus Communications 11 1/4%, 7/1/2008........................................... 140,000 260,000 Global Crossing Holdings 9 1/2%, 11/15/2009......................................... 300,000 300,000 Globenet Communications 13%, 7/15/2007.......................................... 200,000 200,000 Hadco 9 1/2%, 6/15/2008.............................. 155,000 160,000 TDL Infomedia Holdings 0% (15 1/2%), 10/15/2010.............................. 600,000 600,000 Trump Atlantic City Funding 11 1/4%, 5/1/2006.................................. 280,000 580,000 World Access 13 1/4%, 1/15/2008.......................................... 285,000 285,000 Worldwide Fiber 12%, 8/1/2009........................................... 350,000 350,000 Principal Amount or Shares ----------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Corporate Bonds Abraxas Petroleum 11 1/2%, 11/1/2004.......................................... $150,000 -- Alliance Imaging 9 5/8%, 12/15/2005......................................... 170,000 -- Ameriserv Food Distributors 10 1/8%, 7/15/2007................................. 340,000 -- Facilicom International 10 1/2%, 1/15/2008.......................................... 285,000 -- Rogers Cablesystems 11%, 12/1/2015.......................................... 100,000 $135,000 SFX Broadcasting 10 3/4%, 5/15/2006.......................................... 135,000 -- Unisys 11 3/4%, 10/15/2004........................... 175,000 -- Viasystems 9 3/4%, 6/1/2007.......................... 140,000 450,000 Common Stocks AMFM (3)............................................. 2,210 shs. 3,500 shs. Price Communications................................. 8,466 11,000 (13) SELIGMAN INCOME PORTFOLIO Common Stocks Bank of America...................................... 1,403 shs. 2,421 shs. General Electric..................................... 1,300 1,300 International Business Machines...................... 600 1,000 Merck................................................ 1,200 1,200 Microsoft............................................ 1,600 2,600 Pepsico.............................................. 2,300 2,300 Raytheon (Class B)................................... 1,800 1,800 United Technologies.................................. 2,700 2,700 Corporate Bonds Lyondell Chemical 9 5/8%, 5/1/2007........................................... $100,000 $100,000 US Government Agency Securities Federal National Mortgage Association 6%, 11/1/2010.......................... 91,805 91,805 Common Stocks Bristol-Myers Squibb................................. 3,000 shs. 1,000 shs. GATX................................................. 4,800 -- GTE.................................................. 2,400 1,300 Lincoln National..................................... 3,000 -- Sonat................................................ 4,700 -- Unocal............................................... 5,100 -- Washington Mutual.................................... 4,536 -- Corporate Bonds Associated Corp. of North America 5 3/4%, 11/1/2003.......................... $150,000 $100,000 US Government and Government Agency Securities Federal National Mortgage Association 5.795%, 1/1/2009........................................... 199,094 -- US Treasury Notes 6 1/2%, 5/15/2005.......................................... 500,000 --
_____________________ See footnotes on page P-9. --P-6-- Seligman Portfolios, Inc. SELIGMAN INTERNATIONAL GROWTH PORTFOLIO LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999
Shares ----------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- Common Stocks ACOM................................................. 1,200 1,200 Asahi Bank........................................... 19,000 19,000 Unicredito Italiano.................................. 23,208 23,208 Glaxo Wellcome....................................... 5,000 5,000 Oracle............................................... 300 300 Oriental Land........................................ 1,600 1,600 Rinnai............................................... 5,000 5,000 Thyssen Krupp........................................ 4,430 4,430 Toshiba.............................................. 16,000 16,000 Veba................................................. 1,884 1,884 Shares ----------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks Benckiser............................................ 1,785 -- DaimlerChrysler...................................... 1,443 -- Matav-(ADRs)......................................... 7,700 -- Nordbanken Holding................................... 17,805 -- Stmicroelectronics................................... 863 661 (12) Suez Lyonnaise des Eaux.............................. 761 -- Takefuji............................................. 600 -- TDK.................................................. 1,000 -- Tesco................................................ 49,500 -- WPP Group............................................ 7,500 12,500
DIVERSIFICATION OF NET ASSETS*
December 31, 1999 Percent of Net Assets December 31, ---------------------------------- ---------------- Issues Cost Value 1999 1998 -------- ---------- ----------- ------ ------ Common Stocks Automotive and Related............................................ 3 $ 228,887 $ 196,726 1.9 2.1 Banking........................................................... 12 1,016,495 1,245,557 12.1 12.6 Business Services................................................. 4 324,885 595,617 5.8 0.5 Chemical.......................................................... 5 246,053 286,417 2.8 2.2 Construction and Property......................................... -- -- -- -- 4.6 Consumer Products................................................. 7 535,854 602,976 5.9 6.5 Drugs and Health Care............................................. 3 346,210 371,055 3.6 -- Electronics....................................................... 6 344,981 561,516 5.5 1.7 Entertainment and Leisure......................................... 3 259,351 418,956 4.1 1.9 Financial Services................................................ 6 543,002 549,832 5.4 2.7 Health and Household.............................................. 5 495,018 500,830 4.9 6.9 Industrial Goods and Services..................................... 5 349,041 625,079 6.1 6.2 Insurance......................................................... 4 303,663 454,271 4.4 8.2 Manufacturing..................................................... 5 437,857 534,334 5.2 3.4 Media............................................................. 2 116,300 326,289 3.2 1.2 Metals............................................................ 2 94,763 103,099 1.0 0.1 Publishing........................................................ 2 175,103 205,100 2.0 -- Resources......................................................... 4 407,205 519,117 5.1 7.0 Retail............................................................ 2 134,776 125,217 1.2 8.5 Telecommunications................................................ 13 772,785 1,438,943 14.0 12.4 Tobacco........................................................... 1 56,273 50,424 0.5 1.4 Transportation.................................................... 1 52,036 82,119 0.8 3.1 Utilities......................................................... 2 212,111 180,290 1.8 4.5 Miscellaneous..................................................... -- -- -- -- 0.2 ------ ---------- ----------- ------ ------ 97 7,452,649 9,973,764 97.3 97.9 Other Assets Less Liabilities..................................... -- 274,725 274,725 2.7 2.1 ------ ---------- ----------- ------ ------ Net Assets........................................................ 97 $7,727,374 $10,248,489 100.0 100.0 ====== ========== =========== ====== ======
_____________________ See footnotes on page P-9. --P-7-- Seligman Portfolios, Inc. Portfolio Overview (continued) LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999 Shares ------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO Common Stocks Carnival............................................. 1,100 1,100 Coca-Cola............................................ 1,750 2,350 Computer Associates International.................... 1,100 1,100 Corning.............................................. 700 700 General Electric..................................... 400 1,050 Lily (Eli)........................................... 700 700 Lucent Technologies.................................. 1,000 1,000 MCI WorldCom......................................... 900 2,325 (14) Microsoft............................................ 800 1,800 Motorola............................................. 400 650 Shares ------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks AT&T................................................. 1,050 -- Bristol-Myers Squibb................................. 450 -- Cendant.............................................. 1,800 -- Honeywell International (2).......................... 650 550 (2) Lowe's............................................... 500 -- Merck................................................ 400 500 Philip Morris........................................ 1,600 -- Raytheon (Class A)................................... 850 -- Time Warner.......................................... 500 350 Warner-Lambert....................................... 650 -- SELIGMAN LARGE-CAP VALUE PORTFOLIO Common Stocks Allstate............................................. 7,000 7,000 American Home Products............................... 1,900 1,900 Bank of America...................................... 1,000 3,205 Dial................................................. 2,000 7,400 Dow Chemical......................................... 1,000 1,000 El Paso Energy....................................... 1,900 1,900 Goodrich (B.F)....................................... 2,000 7,000 Humana............................................... 6,000 20,000 Safeway.............................................. 6,000 6,000 United Technologies.................................. 1,000 3,000 Common Stocks Bristol-Myers Squibb................................. 1,000 2,200 Champion International............................... 1,200 3,700 General Electric..................................... 1,500 -- General Motors....................................... 500 2,500 Raychem.............................................. 6,450 -- Sears, Roebuck....................................... 4,000 -- Summit Bancorp....................................... 1,000 6,000 Tandy................................................ 2,000 3,000 United Healthcare.................................... 500 3,000 Xerox................................................ 2,400 -- _____________________ See footnotes on page P-9. --P-8-- Seligman Portfolios, Inc. LARGEST PORTFOLIO CHANGES During the Six Months Ended December 31, 1999 Shares ------------------- Holdings Additions Increase 12/31/99 - --------- -------- -------- SELIGMAN SMALL-CAP VALUE PORTFOLIO Common Stocks Abercrombie & Fitch (Class A)........................ 2,000 4,000 AK Steel Holding..................................... 6,000 6,000 American National Can Group.......................... 8,000 8,000 Apria Healthcare Group............................... 8,000 8,000 Complete Business Solutions.......................... 6,000 6,000 Harman International Industries...................... 500 3,000 Midcoast Energy Resources............................ 5,000 5,000 Omnicare............................................. 15,000 15,000 Urban Outfitters..................................... 2,000 6,500 Valero Energy........................................ 7,000 7,000 Shares ------------------- Holdings Reductions Decrease 12/31/99 - ---------- -------- -------- Common Stocks BMC Industries....................................... 12,800 -- Chirex............................................... 4,400 -- Dexter............................................... 3,750 -- Furon................................................ 8,000 -- Giant Cement Holding................................. 6,000 -- Liberty Financial.................................... 1,000 5,000 Marine Drilling...................................... 1,800 7,000 Merrill.............................................. 8,500 -- True North Communications............................ 1,000 3,500 Windmere-Durable Holdings............................ 3,500 10,000 ____________ Largest portfolio changes from the previous period to the current period are based on cost of purchases and proceeds from sales of securities. * "Diversification of Net Assets" is included for the Seligman International Portfolios because their portfolio holdings are listed by country rather than by industry in the "Portfolios of Investments." (1) Includes 7,300 shares received as a result of a 2-for-1 stock split. (2) Formerly AlliedSignal. (3) Formerly Chancellor Media. (4) Formerly Apex PC Solutions. (5) Includes 14,400 shares received as a result of a 2-for-1 stock split. (6) Includes 8,025 shares received as a result of a 3-for-2 stock split. (7) Includes 1,050 shares received as a result of a 3-for-2 stock split. (8) Includes 1,400 shares received as a result of a 2-for-1 stock split. (9) Formerly Grupo Iusacell. (10) Includes 1,560 shares received as a result of a 3-for-1 stock split. (11) Includes 2,250 shares received as a result of a 3-for-2 stock split. (12) Includes 121 shares received as a result of a 2-for-1 stock split. (13) Includes 927 shares received as a result of a stock dividend. (14) Includes 775 shares received as a result of a 2-for-1 stock split. (15) Formerly SMART Modular Technologies. --P-9-- Seligman Portfolios, Inc. Annual Performance Overview The following charts compare a $10,000 hypothetical investment made in each of Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash Management Portfolio), for the 10-year period ended December 31, 1999, or since inception through December 31, 1999, if less than 10 years, to a $10,000 hypothetical investment made in the appropriate benchmark indices and averages for the same period. Accompanying each chart is a discussion of the investment strategy and sector performance that affected the Portfolio during the past year. Seligman Bond Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date Bond Portfolio Lehman Bros. Government Bond Index Lipper Corporate Debt BBB-rated Funds Average 12/31/1989 10000 10000 10000 03/31/1990 9834 9876 9811 06/30/1990 10127 10222 10149 09/30/1990 10166 10306 10043 12/31/1990 10614 10872 10436 31-Mar-91 10861 11108 10870 30-Jun-91 11015 11258 11098 30-Sep-91 11592 11900 11768 31-Dec-91 12161 12538 12382 31-Mar-92 11951 12318 12369 30-Jun-92 12283 12806 12865 30-Sep-92 12825 13439 13509 31-Dec-92 12841 13444 13522 31-Mar-93 13251 14052 14284 30-Jun-93 13552 14458 14815 30-Sep-93 13889 14928 15364 31-Dec-93 13866 14877 15469 31-Mar-94 13468 14429 14914 30-Jun-94 13318 14265 14583 30-Sep-94 13427 14325 14699 31-Dec-94 13396 14375 14674 31-Mar-95 13859 15052 15369 30-Jun-95 14813 15985 16549 30-Sep-95 15116 16268 16958 31-Dec-95 15966 17011 17771 31-Mar-96 15431 16627 17381 30-Jun-96 15370 16707 17470 30-Sep-96 15523 16988 17867 31-Dec-96 15981 17484 18539 31-Mar-97 15868 17342 18429 30-Jun-97 16385 17944 19195 30-Sep-97 16902 18545 19936 31-Dec-97 17417 19160 20430 31-Mar-98 17587 19450 20781 30-Jun-98 18080 19963 21199 30-Sep-98 18896.4 21067 21553 31-Dec-98 18845.37 21050 21707 31-Mar-99 18391.48 20749 21605 30-Jun-99 18028.37 20573 21320 30-Sep-99 18082.84 20709 21333 31-Dec-99 18000.82 20578 21340
Nineteen ninety-nine was a difficult year for fixed-income securities. During this time, the Federal Reserve Board increased the federal funds rate three times, for a total of 75 additional basis points, while the US economy continued to grow at a robust pace. These factors caused 30-year Treasury bond yields to increase by 140 basis points, from 5.08% on December 31, 1998, to 6.48% on December 31, 1999. In the second half of the fiscal year, we sold some intermediate-term bonds in favor of shorter-term securities in response to the generally negative operating environment for bonds. This defensive strategy benefited the Portfolio's performance during the second half of the year. We remained committed to pursuing favorable yield spreads, while at the same time maintaining a high-quality portfolio. The average quality of the Portfolio remained stable at AA. At year-end 1999, the Portfolio was 18% invested in Treasuries, 5% in US government agency bonds, 13% in mortgage pass-through securities, 3% in asset-backed securities, and 61% in corporate bonds. During the year, the spread between Treasuries and corporates widened, and we increased the Portfolio's exposure to corporates to pursue additional yield. Over the course of the year, the Portfolio's yield increased from 5.61% to 7.05%. We believe that 2000 will provide a more positive environment for bonds then did 1999. Yields are likely to stabilize, which should allow for positive total returns. While the Federal Reserve Board is likely to remain cautious regarding any inflationary pressures, we believe it will not be as aggressive as it was in 1999. Seligman Capital Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date Capital Portfolio Lipper MidCap Funds Average Rusell MidCap Growth Index 12/31/1989 10000 10000 10000 03/31/1990 9682 9885 9648 06/30/1990 10852 10678 10474 09/30/1990 8296 8632 8354 12/31/1990 9682 9502 9487 31-Mar-91 11604 11552 11676 30-Jun-91 11759 11454 11495 30-Sep-91 13191 12476 12438 31-Dec-91 15399 13761 13949 31-Mar-92 14374 13831 13524 30-Jun-92 13315 13025 12895 30-Sep-92 14331 13476 13585 31-Dec-92 16445 15306 15163 31-Mar-93 16987 15598 15300 30-Jun-93 16687 15969 15301 30-Sep-93 17791 17137 16333 31-Dec-93 18361 17537 16860 31-Mar-94 17784 16998 16337 30-Jun-94 16224 16168 15619 30-Sep-94 17698 17459 16728 31-Dec-94 17518 17344 16495 31-Mar-95 18608 18585 18278 30-Jun-95 19725 20243 19746 30-Sep-95 21505 22351 21691 31-Dec-95 22278 22708 22099 31-Mar-96 23772 24077 23524 30-Jun-96 25400 25355 24404 30-Sep-96 26013 26151 25233 31-Dec-96 25511 26884 25963 31-Mar-97 24491 25401 25015 30-Jun-97 27837 29333 28697 30-Sep-97 31104 33536 32712 31-Dec-97 30946 32464 31813 31-Mar-98 34400 36440 35612 30-Jun-98 35255 35960 35590 30-Sep-98 28450 29469 29650 31-Dec-98 37813 36338 37499 31-Mar-99 36668 36231 38781 30-Jun-99 40938 40771 42822 30-Sep-99 40048 38729 40677 31-Dec-99 57979 49525 56732
During 1999, growth stocks of all sizes generally delivered extraordinary returns, while value stocks of all sizes generally lagged. A continued strong US economy and improving worldwide economies, combined with low inflation, provided a positive environment for growth stocks. Within the growth-stock universe, technology -- driven by increased Internet demand and an explosion in wireless communications -- was by far the best performing. The growth stocks in the Portfolio were strong performers within this supportive environment, with the technology industry the single most positive influence on performance during the fiscal year. - ----------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. --P-10-- Seligman Portfolios, Inc. Seligman Capital Portfolio (continued) Despite the fact that the Portfolio was underweighted in the sector during the period, the technology stocks it held delivered exceptional returns. In the fiscal year, the Portfolio purchased several what we believe are "best-of-class" Internet companies that focus on the business-to-business applications that allow companies to reduce expenses and increase sales. We believe that such companies, which contribute to increased efficiency in the rest of the economy, will continue to have opportunities for growth for years to come. The Portfolio had relatively low exposure to health care because we believed that the group had become overvalued following a very strong 1998, and there were uncertainties regarding pricing pressure due to potential changes in Medicare drug benefits. This low exposure benefited overall performance since this sector was a poor performer for the year. Going forward, greater emphasis is likely to be placed on technology. In particular, we will look for companies that use information technology to increase sales and data warehousing, and for companies that are developing innovative or improved products, especially in telecommunications. Within technology, we anticipate remaining underweighted in hardware stocks and will focus on software stocks, particularly those involved in business-to-business e-commerce. We will also look for opportunities to gain more exposure to wireless application protocol, which allows Internet access without a personal computer (PC). We believe that a favorable climate for continued global growth lies ahead, based on several factors, including the broader acceptance of the euro, reduced barriers to trade, and Japan's economic progress and financial reforms. This environment would likely benefit mid-cap companies with export-driven revenues. We will seek to gain additional exposure to stocks that are positioned to benefit from the recoveries abroad, particularly in Japan. Seligman Common Stock Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date Common Portfolio Lipper Growth & Income Funds Average S&P 500 12/31/1989 10000 10000 10000 03/31/1990 9910 9747 9699 06/30/1990 10538 10250 10309 09/30/1990 8679 8898 8893 12/31/1990 9685 9548 9689 31-Mar-91 11416 10911 11097 30-Jun-91 11308 10891 11072 30-Sep-91 12094 11507 11664 31-Dec-91 12897 12344 12642 31-Mar-92 13142 12335 12322 30-Jun-92 13037 12368 12556 30-Sep-92 13570 12669 12951 31-Dec-92 14462 13433 13603 31-Mar-93 14981 14069 14197 30-Jun-93 15138 14195 14267 30-Sep-93 15519 14699 14635 31-Dec-93 16189 15041 14974 31-Mar-94 15529 14576 14407 30-Jun-94 15616 14524 14467 30-Sep-94 16405 15143 15175 31-Dec-94 16195 14916 15172 31-Mar-95 17359 16129 16649 30-Jun-95 18452 17422 18240 30-Sep-95 19604 18703 19690 31-Dec-95 20613 19616 20875 31-Mar-96 22028 20766 21996 30-Jun-96 23029 21483 22983 30-Sep-96 23470 22129 23694 31-Dec-96 24751 23829 25670 31-Mar-97 25031 24107 26358 30-Jun-97 28218 27587 30960 30-Sep-97 30348 30071 33279 31-Dec-97 30027 30302 34234 31-Mar-98 33494 33859 39010 30-Jun-98 33974 33938 40297 30-Sep-98 31299 29692 36288 31-Dec-98 37280 34988 44017 31-Mar-99 38180 35611 46209 30-Jun-99 41262 38834 49467 30-Sep-99 38020 35749 46375 31-Dec-99 42181 39589 53276 31-Dec-97 30027 30302 34234 31-Mar-98 33494 33859 39010 30-Jun-98 33974 33938 40297 30-Sep-98 31299 29692 36288 31-Dec-98 37280 34988 44017 31-Mar-99 38180 35611 46209 30-Jun-99 41262 38834 49467 30-Sep-99 38020 35749 46375 31-Dec-99 42181 39589 53276
Seligman Common Stock Portfolio pursues companies with attractive yields, stable earnings growth, strong fundamentals, and reasonable valuations. In 1999, this strategy was out of favor, and investors seemed willing to pay any price for stocks that had been on an upward trend, with little or no regard for valuations and fundamentals. However, we believe that remaining true to our discipline, and avoiding stocks whose valuations seem excessive, will best serve the Portfolio's shareholders over the long term. Steadily rising yields over the course of the year had a negative effect on interest-rate sensitive sectors, such as the financial sector -- one of the Portfolio's most heavily weighted industries. The strongest area of the portfolio -- as for the market -- was technology. While the Portfolio was underweighted in technology, the sector was such a strong performer that it was the single largest contributor to overall portfolio returns. However, the Portfolio's underweighting in technology hurt performance relative to the broader market. The Portfolio benefited from its exposure to both basic materials and capital goods, which were both strong market performers during the year. Health care was one of the worst-performing market sectors because of uncertainty regarding potential Medicare price controls for drug companies. The Portfolio was about market-weighted in this sector, so our exposure to this sector didn't hurt relative performance, but did negatively impact absolute returns. Consumer staples also performed poorly as investors focused on these companies' lack of pricing flexibility. We are cautiously optimistic regarding the outlook for value stocks and for the Portfolio in the year 2000. We do not believe that the type of market that prevailed in 1999-- one in which economic and company-specific fundamentals were largely ignored-- can continue. Many good companies languished in 1999 and are now trading at what we believe are exceptionally attractive prices. It is our conviction that, ultimately, companies that are more attractively priced within their industry groups will be recognized by the market. - ---------------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-11-- Seligman Portfolios, Inc. Annual Performance Overview Seligman Communications and Information Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date C&I Portfolio Lipper Science & Technology Funds Average S&P 500 11-Oct-94 10000 10000 10000 31-Dec-94 10440 10608 9998 31-Mar-95 11030 11435 10972 30-Jun-95 14690 13848 12020 30-Sep-95 16950 15835 12975 31-Dec-95 14464 15188 13756 31-Mar-96 13618 15485 14495 30-Jun-96 13993 16665 15146 30-Sep-96 15139 17823 15614 31-Dec-96 15739 18602 16916 31-Mar-97 14271 16818 17370 30-Jun-97 16961 19906 20402 30-Sep-97 22018 23587 21930 31-Dec-97 19237 20833 22560 31-Mar-98 22103 24518 25707 30-Jun-98 21765 25480 26555 30-Sep-98 18105 22682 23913 31-Dec-98 26256 32033 29007 31-Mar-99 26715 37758 30451 30-Jun-99 31755 43010 32598 30-Sep-99 33624 46385 30561 31-Dec-99 48787 76124 35108
Technology is playing an ever-increasing role in the economy and in the stock market, and in 1999 the industry was by far the best-performing market sector. Technology's importance received public attention when, in November, the Dow Jones Industrial Average, the most widely watched stock-market index, shed four old economy stocks to make room for four new economy stocks. Three of these four stocks -- Intel, Microsoft, and SBC Communications -- are technology stocks. We were pleased with the performances of a number of the Portfolio's holdings during 1999. Among the sectors that performed well for the Portfolio were semiconductors and semiconductor equipment, satellites, computer hardware, contract manufacturing, radio, and security software. The networking and telecommunications equipment sectors of the portfolio performed extremely well; however, the Portfolio's underweighting in these sectors hurt relative performance. The Portfolio's holdings in computer-aided design software performed poorly over the course of the year due to continued weakness in Asia and a leveling off in demand in the United States. While industry fundamentals are outstanding, valuations are extremely high by historical standards. Hence, we have become more vigilant in evaluating the risk of the companies held by the Portfolio, and we have begun to pare back or eliminate some of the most expensive securities. In spite of high valuations in many technology stocks, we continue to find attractive values, particularly in the semiconductor and software sectors. Within the high-growth Internet sector, we anticipate finding the most attractive opportunities in business-to-business Internet. We don't expect to find as many suitable investments in business-to-consumer, but believe that there will be selective opportunities in this area. We also believe that, as the Internet grows in acceptance and usage worldwide, companies that supply the software and equipment that support this growth will continue to benefit. In general, technology companies are truly changing global business. We believe that the world is only in the early stages of technological expansion, and that the sector will thus continue to offer enormous opportunities for long-term investors. Seligman Frontier Portfolio The chart and total return do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date Frontier Portfolio Russell 2000 Growth Index Russell 2000 Index Lipper SmallCap Fund Average 10/11/1994 10000 10000 10000 10000 12/31/1994 10580 9926 9813 9968 03/31/1995 11300 10470 10265 10559 06/30/1995 12260 11509 11227 11480 09/30/1995 13780 12817 12336 12815 12/31/1995 14101 13007 12604 13110 03/31/1996 15443 13753 13247 13965 06/30/1996 17065 14557 13909 15052 09/30/1996 17731 14433 13957 15364 12/31/1996 17476 14470 14682 15777 03/31/1997 15855 12952 13923 14799 06/30/1997 19203 15226 16180 17328 09/30/1997 21455 17802 18588 20162 12/31/1997 20331 16343 17965 19245 03/31/1998 22650 18284 19773 21354 06/30/1998 22044 17235 18851 20489 09/30/1998 16839 13381 15053 16165 12/31/1998 20034 16544 17508 19248 03/31/1999 16324 16267 16559 18048 06/30/1999 18823 18666 19134 20929 09/30/1999 18115 17747 17925 20294 12/31/1999 23358 23673 21232 25031
In 1999, small-capitalization stocks began to deliver returns that were competitive with large-company stocks. However, last year's markets were extraordinarily narrow, regardless of market capitalization. Growth stocks, and particularly technology stocks, outpaced the rest of the market by a wide margin. In the small-cap market, the stocks of companies with little or no earnings outperformed for the year. These stocks are typically part of the new economy, such as technology and communications, rather than the old economy, such as energy and transportation. During fiscal-year 1999, - ------------------ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-12-- Seligman Portfolios, Inc. Seligman Frontier Portfolio (continued) Seligman Frontier Portfolio pursued "middle-of-the-road" stocks in industries such as software, semiconductors, and semiconductor capital equipment. These companies play a vital role in the new economy, yet they are also money-making enterprises. During the fiscal year, the technology sector was the Portfolio's sector and the Portfolio's weighting in this area increased as a result. The Portfolio remains underweighted in the Internet, however, since many of these companies do not yet have any earnings, and the fundamentals underlying these companies are typically weak. Despite high valuations and weak fundamentals, the Internet was the best-performing sector of the small-cap market. At the beginning of the year, the Portfolio suffered as a result of poor stock selection in the health care sector, but most of the resulting drag on performance was recovered by year end. We are optimistic for the Portfolio as we look into the year 2000. Smaller companies, which many believed were at an increased risk for Year 2000 computer problems, entered the millennium unscathed, and many small companies have been delivering strong earnings reports that are meeting or beating the market's expectations. We believe that the interest-rate environment will stabilize in 2000, which would be positive for the stock market as a whole and for small-capitalization stocks. Finally, small-cap stocks continue to be priced considerably lower than their large-cap counterparts, despite the fact that smaller companies continue to have higher growth rates. Seligman Global Growth Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Date Global Growth Opportunities Portfolio Lipper Global Funds Avg. MSCI World Index 01-May-96 10000 10000 10000 30-Jun-96 10010 10118 10062 30-Sep-96 9810 10226 10207 31-Dec-96 9922 10740 10687 31-Mar-97 10022 10842 10730 30-Jun-97 11274 12162 12357 30-Sep-97 11694 12801 12723 31-Dec-97 11169 12199 12422 31-Mar-98 13022 13855 14214 30-Jun-98 13326 13946 14515 30-Sep-98 11422 11940 12788 31-Dec-98 13581 14047 15502 31-Mar-99 14366 14410 16068 30-Jun-99 15527 15486 16849 30-Sep-99 15965 15317 16612 31-Dec-99 20710 18896 19430
The past year witnessed a significant turnaround for global economies and stock markets. In the wake of the financial crisis emanating from Asia in 1998, major central banks around the world lowered interest rates and provided liquidity. In response, the world economy enjoyed a sharp recovery and stock markets, particularly in Asia, rallied strongly. As markets recovered, the Portfolio's relative performance was influenced positively by three major factors. First, the Portfolio's overweighting in technology and telecommunications was beneficial since these sectors performed well. Increasing use of mobile communication devices, the Internet, and data transfer boosted demand for computers, software, and connectivity. Second, the Portfolio's concentration in Japanese emerging growth companies was beneficial since these companies more than doubled in value during the year. Third, the Portfolio's limited exposure to health care helped overall performance as the sector lagged the broader market averages. The Portfolio remained broadly invested in three major growth themes: Quality of Life, Productivity, and Consumption. During the year, we significantly increased exposure to the Productivity theme, which includes information technology and telecommunication services. At the same time, we reduced exposure to the Consumption and Quality of Life themes. The Productivity theme provided much of the Portfolio's activity during the fiscal year. We continued to add substantially to the Telecomms sub-theme, as the increase in voice and data traffic over growing numbers of networks showed no sign of abating. In fact, the provision of ever greater bandwidth promises to accelerate. Telecomms now exceeds both Technology and Consumer Staples as the biggest sub-theme, with about 16% of the Portfolio's assets invested in this area. Among the Portfolio's thematic investments, the emphasis on technology and telecommunications sub-themes is the most important. We believe that despite near-term volatility, secular forces remain supportive of these sectors. The transformation to a wired world has only just begun, with the most momentous changes yet to come. Overall, in an environment of low inflation and intense competition, real growth will continue to be scarce. The experience of recent years has shown that investors around the world are eager to invest in businesses that promise high profit growth, and we believe this situation will continue. Looking ahead, news about global economic activity is likely to remain positive. As a result, interest rates are expected to move higher, first in the US and Europe, and eventually in Asia. However, much of this increase has already been anticipated by market participants, and as long as cyclical inflationary pressures remain muted, investors are unlikely to be overly concerned about higher interest rates. We expect that, as tighter monetary policy preempts higher inflation, long bond yields in most markets will begin to decline. Such an outcome would be supportive of global growth stocks. - -------------------- The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-13-- Seligman Portfolios, Inc. Annual Performance Overview Seligman Global Smaller Companies Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Global Smaller Lipper Global Small Salomon Bros World Date Companies Portfolio Cap Funds Avg. EM Index 11-Oct-94 10000 10000 10000 31-Dec-94 10353 9649 9724 31-Mar-95 10594 9585 9997 30-Jun-95 10886 10373 10404 30-Sep-95 11860 11311 11110 31-Dec-95 12152 11341 11352 31-Mar-96 13246 12150 11969 30-Jun-96 14589 12911 12460 30-Sep-96 14464 12800 12459 31-Dec-96 14421 13084 12774 31-Mar-97 14196 12870 12396 30-Jun-97 15810 14215 13793 30-Sep-97 16023 14938 14658 31-Dec-97 14915 13710 13844 31-Mar-98 17260 15532 15649 30-Jun-98 17329 15182 15285 30-Sep-98 14433 12027 12651 31-Dec-98 15897 13759 14665 31-Mar-99 14531 13654 14306 30-Jun-99 16235 15368 15857 30-Sep-99 16971 15495 15560 31-Dec-99 20402 19981 17947
During fiscal year 1999, performance for global smaller companies was generally volatile, and returns among sectors and regions showed great disparities. Improving world economic growth should have provided a positive background for smaller companies. However, with the exception of a few specific sectors, smaller companies overall have lacked pricing power. In the US, small-capitalization stocks began to deliver returns that were competitive with large-company stocks. However, last year's markets were extraordinarily narrow, regardless of market capitalization. US growth stocks, and particularly technology stocks, outpaced the rest of the market by a wide margin. In the fiscal year, the technology sector was the Portfolio's best- performing US sector and the Portfolio's weighting in this area increased as a result. The Portfolio remains underweighted in the Internet, however, since many of these companies do not yet have any earnings, and the fundamentals underlying these companies are typically weak. Despite high valuations and weak fundamentals, the Internet was the best-performing sector of the US small-cap market. In the UK, smaller companies enjoyed strong performance relative to larger companies. During the first six months of the year, in particular, smaller companies performed very well. More recently, interest-rate increases slowed this outperformance, but smaller companies ended the year strongly. The Portfolio remained consistently overweighted in the United Kingdom. The allocation to the UK was 17.8% in January, rose to a peak of 19.9% in October, and fell to 16.7% by year end. In the UK, we emphasized service companies and technology, which benefited performance since these companies have performed very well. Smaller companies in Continental Europe remained generally out of favor for most of the period. Merger and acquisition activity was concentrated among large companies, and the portfolio restructuring that followed European Monetary Union also favored larger companies. These more than offset the positive earnings growth prospects for smaller companies. The Portfolio was generally neutral to slightly overweighted in Continental Europe during the period. However, valuations are now quite low and we are looking for an opportunity to increase this weighting. In Japan, smaller companies participated in the rising stock market, but generally lagged behind larger-company stocks. The strengthening of the yen during the fiscal year boosted returns for US investors. Within smaller companies, those companies and sectors with visible growth prospects delivered exceptional performance. We believe the Portfolio has very good exposure to fast-growing companies, some of which delivered strong performance during the year. The Portfolio's allocation to Japan more than doubled over the year. However, valuations for high-growth companies are now quite high and we do not anticipate further increasing the Portfolio's Japanese weighting. In the Pacific, smaller companies generally performed in line with those of larger companies and, as a result, rose strongly during the year. The Portfolio moved to a significant overweight position during the course of the year, doubling its allocation from 2.9% in January to 5.9% at the end of the year. The Portfolio focused on companies in the technology and service-related areas, which have generally performed very well. We anticipate remaining overweighted in the Pacific, and may in fact further increase exposure to this region. ____________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-14-- Seligman Portfolios, Inc. Seligman Global Technology Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Global Technology Lipper Global Lipper Sci & Tech MSCI World Date Portfolio Funds Avg. Funds Avg. Index 01-May-96 10000 10000 10000 10000 30-Jun-96 9860 10118 10062 9710 30-Sep-96 9970 10226 10207 10385 31-Dec-96 10401 10740 10687 10839 31-Mar-97 9957 10842 10730 9799 30-Jun-97 11328 12162 12357 11599 30-Sep-97 13525 12801 12723 13743 31-Dec-97 12432 12199 12422 12139 31-Mar-98 14803 13855 14214 14286 30-Jun-98 15108 13946 14515 14847 30-Sep-98 12761 11940 12788 13216 31-Dec-98 17007 14047 15502 18665 31-Mar-99 17928 14410 16068 22001 30-Jun-99 21464 15486 16849 25061 30-Sep-99 23724 15317 16612 27028 31-Dec-99 37211 18896 19430 44356
Technology stocks enjoyed an exceptionally strong year, outperforming the broad market by a wide margin. Every region of the global stock market saw the same pattern with investors becoming increasingly disenchanted with the low levels of growth offered by traditional companies and increasingly enthusiastic about the apparently open-ended growth opportunity provided by the technology industry. Although the fiscal year began with some apprehension about the impact of Y2K on technology spending patterns, demand remained strong across the board. The growth of the Internet and its increased use by both businesses and consumers remained the most significant driver of technology spending. While the US originally led this trend, both Europe and Asia are catching up rapidly. Growth of the Internet has had positive implications for spending in areas such as storage, servers, communications equipment, and particular segments of the software and services markets. Wireless demand has continued unabated and, with the general pick-up in global economic activity, demand has increased sharply for components. Relatively few areas of the industry have lagged behind, but the key difference in the performance of technology stocks this year has been their positioning vis-a-vis the Internet. We maintained a significant weighting in the US throughout the year while adding to the Portfolio's position in Japan during the spring. We continued to make major commitments to both the communications and semiconductor sectors, and enjoyed a strong year in both areas. During the period, we reduced the Portfolio's exposure to the personal computer and software/services markets. As we enter the Year 2000, the technology industry's fundamental outlook remains positive. We expect earnings growth to accelerate, which should help to support what are admittedly fairly high valuations. The latter, together with the extent to which stock market performance has been polarized over the last year, create the conditions in which there is some risk of a switch back into value and cyclicals. However, we believe that the technology industry remains well positioned for long-term growth. Seligman High-Yield Bond Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
High-Yield Bond Merrill Lynch High- High Current Yield Date Portfolio Yield Master Index Funds Avg. 01-May-95 10000 10000 10000 30-Jun-95 10030 10391 10265 30-Sep-95 10300 10694 10591 31-Dec-95 10737 11049 10907 31-Mar-96 11126 11211 11217 30-Jun-96 11341 11364 11440 30-Sep-96 11872 11808 11982 31-Dec-96 12307 12272 12419 31-Mar-97 12252 12400 12512 30-Jun-97 13022 12990 13179 30-Sep-97 13824 13497 13882 31-Dec-97 14164 13846 14076 31-Mar-98 14820 14232 14681 30-Jun-98 14987 14471 14739 30-Sep-98 13925 13953 13658 31-Dec-98 14309 14354 14050 31-Mar-99 14506 14510 14448 30-Jun-99 14335 14607 14546 30-Sep-99 13914 14424 14321 31-Dec-99 14201 14579 14682
All fixed-income securities, including those held by the Portfolio, faced the formidable headwind of rising interest rates during the past fiscal year. This difficult operating environment was the single biggest factor affecting Portfolio performance during this time. The high-yield market, while withstanding interest-rate increases better than many other fixed-income securities, experienced some ad verse market conditions unique to high-yield bonds. Since the 1998 global financial crisis, the high-yield market has suffered from reduced liquidity. This has widened the yield spread between high-yield bonds and Treasuries with similar maturities. In addition, during 1999, new supply of high-yield bonds outpaced demand significantly. This imbalance drove prices for existing high-yield issues lower. During the past fiscal year, we began to seek more opportunities in the high-growth areas of technology, wireless communications, and telecommunications infrastructure companies. In particular, we are optimistic about communications tower companies, fiber ____________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-15-- Seligman Portfolios, Inc. Annual Performance Overview Seligman High-Yield Bond Portfolio (continued) optic cable companies, Internet companies, and European telecom companies. During the next three years, the growth rate for fiber cable deployment and bandwidth demand is expected to grow by 30% per year. This increase in demand is being driven by the growing use of the Internet. We believe the Portfolio is currently well positioned to capitalize on the increasing demand for data, video, and telephony services. During the period under review, we reduced the Portfolio's exposure to health care, since this sector continues to struggle because of changes in Medicare reimbursement programs. We also reduced the Portfolio's exposure to economically sensitive sectors since these areas are more at risk if interest rates head higher. We believe that the outlook for the high-yield market and for the Portfolio is positive. The interest-rate environment during was extraordinarily unfavorable for fixed-income securities, and we do not believe that this will continue in 2000. As interest rates stabilize and global economies continue to recover, we believe that the prices for high-yield bonds in general will begin to move higher. We are particularly optimistic regarding the prospects for the securities in the Portfolio. Throughout 2000, we expect to continue to seek opportunities in the high-growth areas of wireless communications, telecommunications infrastructure, Internet, cable, and media-related sectors. Seligman Income Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Lehman Bros. Aggregate Lipper Income Date Income Portfolio Bond Index Funds Average S&P 500 12/31/1989 10000 10000 10000 10000 03/31/1990 9981 9920 9764 9699 06/30/1990 10074 10283 10047 10309 09/30/1990 9072 10372 9327 8893 12/31/1990 9390 10896 9866 9689 31-Mar-91 10447 11201 10786 11097 30-Jun-91 10882 11383 10856 11072 30-Sep-91 11772 12029 11647 11664 31-Dec-91 12290 12639 12345 12642 31-Mar-92 12793 12478 12344 12322 30-Jun-92 13110 12982 12699 12556 30-Sep-92 13590 13540 13145 12951 31-Dec-92 14222 13576 13486 13603 31-Mar-93 14996 14137 14321 14197 30-Jun-93 15408 14512 14652 14267 30-Sep-93 15870 14890 15185 14635 31-Dec-93 15981 14899 15214 14974 31-Mar-94 15307 14472 14614 14407 30-Jun-94 14844 14323 14542 14467 30-Sep-94 15349 14410 14889 15175 31-Dec-94 15028 14465 14625 15172 31-Mar-95 15571 15194 15523 16649 30-Jun-95 16626 16119 16513 18240 30-Sep-95 17606 16435 17353 19690 31-Dec-95 17730 17135 18127 20875 31-Mar-96 17948 16832 18500 21996 30-Jun-96 18183 16928 18848 22983 30-Sep-96 18334 17241 19181 23694 31-Dec-96 18910 17758 20099 25670 31-Mar-97 19017 17659 20144 26358 30-Jun-97 20258 18307 21682 30960 30-Sep-97 21246 18915 22963 33279 31-Dec-97 21561 19471 23438 34234 31-Mar-98 22779 19775 24691 39010 30-Jun-98 22779 20237 24776 40297 30-Sep-98 22300 21093 23694 36288 31-Dec-98 23234 21165 25240 44017 31-Mar-99 22854 21059 25292 46209 30-Jun-99 23381 20874 26273 49467 30-Sep-99 22390 21016 25511 46375 31-Dec-99 23901 20991 26501 53276
Seligman Income Portfolio had a difficult 1999 as a result of a narrow stock market that overwhelmingly favored growth stocks over value stocks, and a fixed-income market that was dragged lower because of steadily rising interest rates. During the past fiscal year, we significantly reduced the Portfolio's exposure to fixed-income securities, while we increased the Portfolio's exposure to the stock market. We believe that this heavier stock weighting will provide the Portfolio with more opportunities for capital appreciation. At the same time, by continuing to maintain a substantial exposure to investment-grade corporate bonds and government bonds, we hope to cushion the Portfolio from the historically higher volatility of the stock market. We are cautiously optimistic regarding the outlook for the stock market and the fixed-income market for the year 2000. We believe that the stock market will broaden considerably from what we experienced in 1999, and that value stocks will be rewarded. In addition, we believe that yields will stabilize, allowing fixed-income securities to post positive total returns. ________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-16-- Seligman Portfolios, Inc. Seligman International Growth Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
International Lipper International Date Portfolio Funds Avg. EAFE Index 03-May-93 10000 10000 10000 30-Jun-93 10010 10005 10057 30-Sep-93 10480 10875 10731 31-Dec-93 11440 11907 10831 31-Mar-94 10987 11822 11216 30-Jun-94 11399 11950 11797 30-Sep-94 11751 12323 11816 31-Dec-94 11591 11838 11704 31-Mar-95 11428 11659 11931 30-Jun-95 11765 12146 12028 30-Sep-95 12603 12746 12539 31-Dec-95 12905 13009 13057 31-Mar-96 13228 13593 13443 30-Jun-96 13603 14087 13666 30-Sep-96 13520 14026 13659 31-Dec-96 13819 14598 13887 31-Mar-97 13925 14799 13680 30-Jun-97 15802 16452 15466 30-Sep-97 15716 16684 15367 31-Dec-97 14973 15410 14173 31-Mar-98 17295 17675 16269 30-Jun-98 17682 17801 16453 30-Sep-98 14719 14939 14125 31-Dec-98 17340 17399 17056 31-Mar-99 17374 17685 17305 30-Jun-99 18118 18675 17756 30-Sep-99 18705 19399 18548 31-Dec-99 21960 24302 21711
The past fiscal year was characterized by significant divergence in regional stock market performance. The UK stock market generally tracked the ups and downs of the US market. However, there was significant movement within the stock market as a whole. As the UK economic recovery seemed well underway, more domestic and economically-sensitive stocks performed well. However, there was an abrupt change in July when the Bank of England raised interest rates, and these stocks sold off sharply. Throughout the period, stocks in technology and telecommunications performed well. Our weighting in the UK remained relatively stable over the course of the year. We were overweighted in UK economically sensitive stocks for most of the year, which benefited the Portfolio. However, following the interest rate increases, we have moved to a more neutral position in these stocks. In local currency terms, Continental European stock markets performed well. However, because of the weakness of the euro, US dollar returns have been more subdued. Economically-sensitive stocks generally performed well while defensive stocks underperformed. In addition, telecommunications and technology performed well throughout the year and, unlike in the UK, this trend has continued. A high level of merger and acquisition activity also benefited the UK markets, and this is likely to continue. The Portfolio remained overweighted in Continental Europe throughout the year, which has placed a drag on performance. However, our move out of defensive stocks early in the year was beneficial. Now that the economic recovery has broadened throughout Europe, we will remain overweighted in Continental Europe since we anticipate strong corporate profit growth in year 2000 with ongoing restructuring activity. The Japanese stock market was the best performer last year, boosted by a strong rise in the yen versus the dollar. The big turnaround came towards the end of the first quarter when the first signs of economic recovery emerged. In particular, the stock market was boosted by major inflows of overseas money. The strong yen, however, damaged profits in the export sector. Investors have focused on what could be described as "new Japan" stocks, mainly in the service and technology sectors. The Portfolio was initially underweighted in Japan, but increased this weighting significantly during the year, particularly in early March. In the Pacific, the strongest recoveries have been Korea and Singapore. In contrast, continued political turmoil in Indonesia placed a drag on stock market performance. The Portfolio remained underweighted in the region, which was a negative given the strong recovery. Overall, improving economic growth on a global basis should be positive for the pacific region and we will seek opportunities to increase the Portfolio's exposure during the coming fiscal year. Emerging markets benefited from improving global growth and performed well during the year. Foreign investors once again sought opportunities in these markets, as the fears of last year subsided. The Portfolio reduced its emerging market exposure during the period, but had significant holdings in Greece, which performed exceptionally well. In Latin America, the Portfolio was concentrated in Mexico and Brazil. The economic outlook for emerging markets is as good as it has been for some time, with steady growth and low inflation likely to continue. However, central banks are now more concerned regarding inflation, and interest rates may rise slightly from current levels. For the first time in some time, earnings growth outside the US may be higher and international stock markets are now beginning to perform much better following their long period of underperformance against US markets. _____________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-17-- Seligman Portfolios, Inc. Annual Performance Overview Seligman Large-Cap Growth Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Large-Cap Growth Lipper Growth Russell 1000 Portfolio Funds Average Growth Index 04/30/1999 10000 10000 10000 05/31/1999 9730 9812 9693 06/30/1999 10420 10398 10372 07/31/1999 10120 10131 10042 08/31/1999 10270 10039 10205 09/30/1999 10080 9877 9991 10/31/1999 10470 10458 10745 11/30/1999 10990 10921 11325 12/31/1999 12160 11944 12502
The Portfolio benefited during the first eight months of its operations by a very favorable environment for growth stocks. Technology stocks, in particular, enjoyed exceptionally positive performance. Despite the fact that the Portfolio was underweighted in this industry, the technology stocks in the Portfolio delivered very strong results and the sector made a positive impact on overall performance. The Portfolio was underweighted in health care during this time, which benefited overall performance since this sector was a poor performer. Since the Portfolio's inception, we have pursued large-capitalization companies, with particular emphasis on those with longer-term track records. In general, we are attracted to stocks with strong price-to-earnings growth rates looking two years ahead. We believe that the Portfolio is well positioned as we head into the new year. We anticipate increasing the Portfolio's technology weighting during the coming fiscal year, and believe that this industry will continue to be a high-growth area and a strong market performer. We plan to seek additional opportunities in companies that are positioned to benefit from the recoveries abroad, particularly in Japan. Seligman Large-Cap Value Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Large Cap Russell 1000 Russell 1000 Date Value Portfolio Value Index Index S&P 500 01-May-98 10000 10000 10000 10000 31-May-98 9990 9852 9784 9828 30-Jun-98 9920 9978 10146 10227 31-Jul-98 9550 9802 10024 10118 31-Aug-98 7980 8344 8526 8655 30-Sep-98 8050 8823 9100 9209 31-Oct-98 9000 9507 9819 9958 30-Nov-98 9940 9950 10427 10562 31-Dec-98 9974 10288 11091 11170 31-Jan-99 9933 10370 11487 11637 28-Feb-99 9716 10224 11123 11275 31-Mar-99 10046 10436 11549 11726 30-Apr-99 10862 11410 12032 12180 31-May-99 10862 11285 11772 11892 30-Jun-99 11089 11612 12372 12552 31-Jul-99 10635 11272 11995 12161 31-Aug-99 10284 10854 11882 12100 30-Sep-99 9427 10475 11555 11768 31-Oct-99 9933 11078 12332 12513 30-Nov-99 9778 10992 12649 12767 31-Dec-99 9698 11045 13412 13519
During the past fiscal year, the outsized performance of a small number of stocks within the S&P 500 carried the performance of the entire Index for the year. The stocks that did well were primarily large-capitalization growth and technology stocks. Seligman Large-Cap Value Portfolio had, and continues to have, very low exposure to the technology industry because we believe that the vast majority of these stocks do not represent good value. Stock prices for these companies continued to rise over the course of the year, despite often poor underlying fundamentals, including a consistent lack of earnings for many of these companies, and a continued rise in interest rates. Last year's market was, to a great extent, driven by momentum; a small number of stocks were being bought simply because their prices appeared to be on an upward trend. The rest of the market, and with it many attractively valued stocks, lagged behind. Despite the seemingly robust performance of the S&P 500, nearly half of the stocks in the Index posted negative returns for the year, with value-style stocks trailing growth-style stocks to an unprecedented degree. In the period under review, some of the Portfolio's individual stock holdings delivered poor results. These stocks, which were within the aerospace, office equipment, food, and packaging sectors, declined because of lower earnings expectations. In all these cases, we reduced, or completely eliminated, the Portfolio's exposure to these companies over the course of the fiscal year. __________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. See footnote on page P-19. --P-18-- Seligman Portfolios, Inc. Seligman Large-Cap Value Portfolio (continued) Despite a difficult 1999, we continue to favor the financial sector since we think that many of these companies remain good values, and we forecast a better operating environment for this industry in the year 2000. We believe that interest rates, whose upward trend was so detrimental to these stocks in 1999, will stabilize. During fiscal year 1999, we eliminated or reduced some positions that had done well either because we did not believe they continued to represent good value or because they had increased to a degree that they represented too large a percentage of the portfolio. We continually monitor the Portfolio to ensure that no single holding is excessively overweighted and that the Portfolio remains well diversified. We believe that value stocks will be recognized by the market in 2000, and believe that the overall economic environment bodes well for value stocks. We forecast a slowing US economy, but a strengthening international economy. Value companies tend to be economically sensitive and thus perform well within a growing global economy. In addition, a more sedate US economy may allow interest rates to decline, which would further benefit value stocks -- particularly financial stocks -- since they tend to do well when interest rates fall. Seligman Small-Cap Value Portfolio The chart and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts.
Small Cap Russell 2000 Lipper S-Cap Date Value Portfolio Value Index Fds Avg 01-May-98 10000 10000 10000 31-May-98 9500 9646 9447 30-Jun-98 9150 9592 9513 31-Jul-98 8460 8841 8840 31-Aug-98 6350 7456 7088 30-Sep-98 6420 7878 7505 31-Oct-98 6850 8112 7822 30-Nov-98 7290 8332 8330 31-Dec-98 8300 8593 8937 31-Jan-99 8652 8398 8957 28-Feb-99 8345 7824 8235 31-Mar-99 8856 7760 8380 30-Apr-99 10900 8469 8926 31-May-99 11002 8729 9105 30-Jun-99 11910 9045 9717 31-Jul-99 11865 8830 9648 31-Aug-99 10934 8508 9389 30-Sep-99 10548 8338 9422 31-Oct-99 9946 8171 9611 30-Nov-99 10684 8214 10374 31-Dec-99 11226 8466 11622
Seligman Small-Cap Value Portfolio was negatively impacted by last year's market environment, which overwhelmingly favored growth stocks over value stocks. Last year's market largely ignored fundamentals and was one of the most narrow on record. A small number of stocks, particularly in the technology sector, continued to experience price gains, while much of the market lagged behind. The Portfolio has very low exposure to technology because the vast majority of these stocks do not fit our value criteria. Stock prices for these companies continued to rise over the course of the year, despite often poor underlying fundamentals, including a consistent lack of earnings for many of these companies, and a continued rise in interest rates. During 1999, many companies within the Portfolio posted strong operating results, but this was not reflected in higher stock prices. One of the Portfolio's long-term holdings in specialty retail delivered poor stock-price performance during the period despite posting better-than-expected operating performance. This is a specific example of the market's lack of regard for fundamentals during this time. We continued to hold the stock because we believe that if a company continues to deliver strong results, the market will ultimately recognize the stock. The energy sector as a whole outperformed during the period. The Portfolio's overweighting in the sector, as well as the strong performances of individual energy stocks in the Portfolio, helped both absolute and relative performance. Financial stocks came under considerable pressure as a result of rising interest rates. These companies are among the most sensitive to interest- rate changes; they tend to perform poorly when interest rates go up, and perform well when interest rates decline. While the Portfolio did have significant exposure to financial stocks, the Portfolio was, fortunately, considerably underweighted in this sector versus its benchmark, the Russell 2000 Value Index. We are optimistic regarding the prospects for small-company value stocks during the coming fiscal year. We are convinced that it is only a matter of time before investors begin to pursue these relative bargains in the midst of a broader market that in some areas has become remarkably expensive. The Russell 2000 Value Index now has a dividend yield higher than that of the S&P 500. This is unprecedented. Small companies typically have higher earnings growth rates, but lower dividend yields. Currently, small companies are offering higher current yields in addition to higher growth rates. We believe that these strong underlying fundamentals, in addition to attractive valuations, will ultimately be recognized by the market. __________________ The investment return and principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Past performance is not indicative of future investment results. +Performance data quoted represent past performance and assume that all dividends and distributions are invested in additional shares. --P-19-- Seligman Portfolios, Inc. Portfolios of Investments SELIGMAN BOND PORTFOLIO
Principal Amount Value --------- ----------- CORPORATE BONDS -- 52.6% Allstate 7.20%, 12/1/2009.................................... $ 75,000 $ 72,959 American Home Products 7.90%, 2/15/2005.................................... 75,000 77,043 Associates Corporation of North America 5 3/44%, 11/1/2003.................................. 250,000 238,231 AT&T (Canada) 7.65%, 9/15/2006.................................... 50,000 49,846 Bank of New York 7.30%, 12/1/2009.................................... 75,000 73,607 Boston Scientific 6 5/8%, 3/15/2005................................... 100,000 92,251 Cardinal Health 6 1/4%, 7/15/2008................................... 100,000 91,071 CSC Holdings 7 1/4%, 7/15/2008................................... 50,000 47,625 Dana 6 1/2%, 3/1/2009.................................... 100,000 91,129 Deere 6.55%, 7/15/2004.................................... 40,000 38,905 Dell Computer 6.55%, 4/15/2008.................................... 200,000 187,688 Delta Air Lines 7.70%, 12/15/2005................................... 75,000 73,847 Dime Bancorp 7%, 7/25/2001....................................... 50,000 49,322 First Data 5.80%, 12/15/2008................................... 100,000 88,195 First USA Bank 6 1/8%, 6/25/2001................................... 100,000 99,076 Ford Motor Credit 5.80%, 1/12/2009.................................... 100,000 88,900 Guidant, 6.15%, 2/15/2006.............................. 100,000 92,364 Heller Financial 6 1/2%, 7/22/2002................................... 75,000 73,652 Household Finance 6%, 5/1/2004........................................ 100,000 95,042 Lyondell Chemical 9 5/8%, 5/1/2007.................................... 100,000 102,750 Nordstrom 5 5/8%, 1/15/2009................................... 40,000 34,767 Philip Morris 7 1/8%, 8/15/2002................................... 200,000 196,877 CORPORATE BONDS (continued) Qwest Communications 0% (9.47%++), 10/15/2007............................ $ 50,000 $ 40,750 Staples 7 1/8%, 8/15/2007................................... 75,000 71,541 Textron 6 3/8%, 7/15/2004................................... 60,000 57,931 Time Warner 9 1/8%, 1/15/2013................................... 200,000 219,841 US West Communications 7.20%, 11/1/2004.................................... 75,000 74,633 Wal-Mart Stores 6.55%, 8/10/2004.................................... 85,000 83,675 ----------- Total Corporate Bonds (Cost $2,712,814).................................. 2,603,518 ----------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 21.7% Federal Home Loan Bank 5 1/8%, 4/17/2001.................................. 100,000 98,420 US Treasury Bonds 8 3/4%, 5/15/2020.................................. 300,000 363,188 7 1/4%, 8/15/2022.................................. 200,000 210,938 US Treasury Notes 6 1/4%, 6/30/2002................................... 200,000 199,938 6 5/8%, 5/15/2007................................... 200,000 200,875 ----------- Total US Government and Government Agency Securities (Cost $1,101,339)................................... 1,073,359 ----------- MORTGAGE-BACKED SECURITIES+ -- 17.1% FHLMCGOLD 6%, 11/1/2010................................ 80,329 77,502 FNMA: 6 1/2%, 4/29/2009................................... 160,000 150,166 6%, 12/1/2028....................................... 190,343 174,323 Government National Mortgage Association: 6 1/2%, 12/15/2028.................................. 285,753 268,518 6%, 12/20/2028...................................... 192,124 174,455 -----------
____________ + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. ++ Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-20-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO (continued)
December 31, 1999 ---------------------- Principal Amount Value --------- ----------- Total Mortgage-Backed Securities (Cost $895,908)....................................... $ 844,964 ----------- ASSET-BACKED SECURITIES+ -- 3.4% Peco Energy Transition Trust 6.05%, 3/1/2009....................................... $ 100,000 93,460 PP&L Transition 6.83%, 3/25/2007...................................... 75,000 74,598 ----------- Total Asset-Backed Securities (Cost $174,857)....................................... 168,058 ----------- Principal Amount Value --------- ----------- REPURCHASE AGREEMENTS -- 10.1% (Cost $500,000) State Street Bank & Trust 3-1/2%, dated 12/31/99, maturing 1/3/2000, collateralized by: $485,000 US Treasury Notes 7-1/2%, 2/15/2005, with a fair market value of $520,163 ................... $ 500,000 $ 500,000 ----------- Total Investments -- 104.9% (Cost $5,384,888) ...................................... 5,189,899 Other Assets Less Liabilities -- (4.9)%.............................. (242,751) ----------- Net Assets -- 100.00%.................................... $ 4,947,148 ===========
- -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO
Shares Value -------- ----------- COMMON STOCKS -- 95.5% BASIC MATERIALS -- 2.7% Nucor.................................................... 8,200 $ 449,463 Praxair.................................................. 5,700 286,781 ----------- 736,244 ----------- CAPITAL GOODS -- 11.1% American Power Conversion*............................... 16,400 432,038 Avery Dennison........................................... 7,300 531,987 Cintas................................................... 8,900 472,534 Corning.................................................. 4,200 541,538 Molex.................................................... 5,700 322,941 Symbol Technologies...................................... 12,100 769,106 ----------- 3,070,144 ----------- CONSUMER CYCLICALS -- 17.7% BJ's Wholesale Club*..................................... 6,600 240,900 Circuit City Stores--Circuit City Group................ ............................. 13,000 585,812 Danaher.................................................. 3,300 159,225 Shares Value -------- ----------- CONSUMER CYCLICALS (continued) DoubleClick*............................................. 1,500 $ 379,922 Fastenal................................................. 7,000 314,781 Fluor.................................................... 7,200 330,300 Gentex*.................................................. 16,400 457,150 Harley-Davidson.......................................... 7,000 448,438 Interpublic Group of Companies........................... 4,200 242,287 Limited.................................................. 13,400 580,388 Reader's Digest Association.............................. 10,600 310,050 Royal Caribbean Cruises.................................. 8,600 424,088 Williams-Sonoma*......................................... 4,500 207,000 Young & Rubicam.......................................... 2,800 198,100 ----------- 4,878,441 ----------- CONSUMER STAPLES -- 2.1% Clorox................................................... 5,300 266,987 Newell Rubbermaid........................................ 10,400 301,600 ----------- 568,587 -----------
___________ + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. * Non-income producing security. See Notes to Financial Statements. --P.21-- Seligman Portfolios, Inc. Portfolios of Investments (continued) SELIGMAN CAPITAL PORTFOLIO (continued)
Shares Value ----------- ------------ ELECTRONIC TECHNOLOGY -- 16.4% Applied Micro Circuits*.......................... 1,100 $ 140,113 Broadcom (Class A)*.............................. 1,900 517,453 Ciena*........................................... 9,000 517,781 Finisar*......................................... 3,400 304,300 Foundry Networks*................................ 1,100 331,787 Gateway*......................................... 3,500 252,219 JDS Uniphase*.................................... 4,400 709,775 Maxim Integrated Products*....................... 2,900 136,753 Network Appliances*.............................. 1,400 116,244 PMC-Sierra* (Canada)............................. 1,300 208,366 VERITAS Software*................................ 3,000 429,281 Vitesse Semiconductor*........................... 8,400 440,213 Xilinx*.......................................... 9,400 427,406 ------------ 4,531,691 ------------ ENERGY -- 2.4% EOG Resources.................................... 12,000 210,750 Weatherford International*....................... 11,400 455,287 ------------ 666,037 ------------ FINANCIAL SERVICES -- 6.6% ACE.............................................. 15,300 255,319 AFLAC............................................ 8,600 405,812 Allied Capital................................... 13,400 244,969 Capital One Financial............................ 4,600 221,662 Concord*......................................... 16,500 424,359 SouthTrust....................................... 6,950 262,580 ------------ 1,814,701 ------------ HEALTH CARE -- 10.5% ALZA*............................................ 8,200 283,925 Biogen*.......................................... 4,800 405,450 Biomet........................................... 3,900 155,878 Elan*............................................ 15,300 451,350 Forest Laboratories*............................. 6,600 405,488 Guidant*......................................... 5,400 253,800 IMS Health....................................... 3,900 106,031 PE Biosystems Group.............................. 2,900 348,906 Quintiles Transnational*......................... 11,000 205,219 Watson Pharmaceutical*........................... 7,800 279,337 ------------ 2,895,384 ------------ TECHNOLOGY Services -- 22.6% Ariba*........................................... 1,700 301,219 BMC Software*.................................... 5,500 439,484 Shares Principal Amount Value ----------- ------------ TECHNOLOGY SERVICES (continued) Cadence Design Systems*.......................... 31,200 shs. $ 748,800 Commerce One*.................................... 1,000 196,781 Compuware*....................................... 13,500 502,453 CSG Systems International*....................... 5,800 229,463 Fiserv*.......................................... 4,500 172,125 I2 Technologies*................................. 1,300 253,256 ISS Group*....................................... 12,800 909,600 NBC Internet (Class A)*.......................... 5,100 393,975 Rational Software*............................... 7,600 374,063 Siebel Systems*.................................. 7,300 614,113 Software.com*.................................... 3,200 305,800 VeriSign*........................................ 1,600 305,700 Vignette*........................................ 2,900 472,609 ----------- 6,219,441 ----------- UTILITIES -- 3.4% AES.............................................. 12,700 949,325 ----------- Total Common Stocks (Cost $17,608,795).............................. 26,329,995 ----------- REPURCHASE AGREEMENTS -- 7.6% (Cost $2,100,000) State Street Bank & Trust, 3-1/2%, dated 12/31/99, maturing 1/3/2000, collateralized by: $2,020,000 US Treasury Notes 7-1/2%, 2/15/2005, with a fair market value of $2,166,450 ..................................... $ 2,100,000 2,100,000 ------------ Total Investments -- 103.1% (Cost $19,708,795).............................. 28,429,995 Other Assets Less Liabilities-- (3.1)%............................ (844,202) ------------ Net Assets-- 100.0%.............................. $ 27,585,793 ============
____________ * Non-income producing security. See Notes to Financial Statements. --P-22-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO
Annualized Yield on Principal Purchase Date Amount Value -------------- ---------- ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 42.4% US GOVERNMENT SECURITIES -- 25.5% US Treasury Bills, 1/13/2000............................ 5.37% $1,000,000 $ 998,234 1/20/2000............................ 5.30 1,500,000 1,497,385 1/20/2000............................ 5.03 1,000,000 997,382 1/27/2000............................ 4.92 1,000,000 996,497 ---------- Total US Government Securities (Cost $4,489,498).................... 4,489,498 ---------- US GOVERNMENT AGENCY SECURITIES -- 16.9% Farm Credit Bank 5.52%, 1/20/2000..................... 5.60 700,000 697,961 Federal Home Loan Bank 5-1/2%, 2/1/2000............................. 5.58 800,000 796,211 Federal Home Loan Mortgage 5.61%, 2/28/2000............................ 5.69 700,000 693,673 Federal National Mortgage Association, 5.47%, 1/24/2000............................ 5.55 800,000 797,204 ---------- Total US Government Agency Securities (Cost $2,985,049).................... 2,985,049 ---------- Total US Government and Government Agency Securities (Cost $7,474,547).................... 7,474,547 ---------- COMMERCIAL PAPER -- 30.6% American Express Credit, 1/10/2000.................... 5.74 800,000 798,868 American General Finance, 1/19/2000................... 5.63 800,000 797,780 Annualized Yield on Principal Purchase Date Amount Value -------------- ---------- ---------- COMMERCIAL PAPER (continued) Associates Corp. of North America, 2/9/2000............................. 5.98% $ 700,000 $ 695,526 Ford Motor Credit, 1/24/2000............................ 5.84 900,000 896,688 General Electric Capital, 1/26/2000............................ 6.25 700,000 697,005 John Deere Capital, 1/12/2000............................ 5.83 800,000 798,594 Norwest Financial, 2/14/2000............................ 6.29 700,000 694,696 ---------- Total Commercial Paper (Cost $5,379,157) ................... 5,379,157 ---------- REPURCHASE AGREEMENTS -- 21.6% (Cost $3,800,000) State Street Bank & Trust, 3-1/2%, dated 12/31/99, maturing 1/3/2000 collateralized by: $3,650,000 US Treasury Notes 7-1/2%, 2/15/2005, with fair market value of $3,914,625........................... 3.55 3,800,000 3,800,000 ----------- Total Investments -- 94.6% (Cost $16,653,704)................... 16,653,704 Other Assets Less Liabilities-- 5.4%................... 957,677 ----------- Net Assets-- 100.0%................... $17,611,381 ===========
_____________________ See Notes to Financial Statements. --P-23-- Seligman Portfolios, Inc. - ----------------------------------------------------------- Portfolios of Investments (continued) - ----------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO
Shares Value -------- ------- COMMON STOCKS -- 97.6% AEROSPACE -- 0.5% General Dynamics................................... 4,700 $ 247,925 ---------- AUTOMOTIVE AND RELATED -- 2.4% DaimlerChrysler.................................... 7,099 555,497 Ford Motor......................................... 11,300 603,844 ---------- 1,159,341 ---------- CHEMICALS -- 1.1% duPont (E.I.) de Nemours........................... 7,800 513,825 ---------- COMMUNICATIONS -- 7.9% AT&T............................................... 21,600 1,096,200 GTE................................................ 11,100 783,244 MCI WorldCom*...................................... 14,700 779,559 SBC Communications................................. 21,928 1,068,990 ---------- 3,727,993 ---------- COMMUNICATIONS EQUIPMENT -- 2.6% Lucent Technologies................................ 9,500 710,719 Nortel Networks.................................... 5,100 515,100 ---------- 1,225,819 ---------- COMPUTER AND BUSINESS SERVICES -- 19.7% America Online*.................................... 5,800 437,538 Applied Materials*................................. 8,500 1,076,578 Cisco Systems*..................................... 10,900 1,167,322 Dell Computer*..................................... 10,200 519,881 Electronic Data Systems............................ 15,800 1,057,612 Hewlett-Packard.................................... 4,300 489,931 Intel.............................................. 15,300 1,258,903 International Business Machines.................... 8,600 928,800 Microsoft*......................................... 18,800 2,194,313 Xerox.............................................. 8,300 188,306 ---------- 9,319,184 ---------- CONSUMER GOODS AND SERVICES -- 12.0% Anheuser-Busch..................................... 7,300 517,387 Bestfoods.......................................... 12,100 636,006 Clorox............................................. 13,600 685,100 Coca-Cola.......................................... 7,800 454,350 ConAgra............................................ 19,700 444,481 Shares Value -------- ------- CONSUMER GOODS AND SERVICES (continued) Gillette........................................... 13,300 $ 547,794 PepsiCo............................................ 18,900 666,225 Philip Morris...................................... 17,400 403,463 Procter & Gamble................................... 7,200 788,850 Sara Lee........................................... 23,400 516,263 ---------- 5,659,919 ---------- DRUGS AND HEALTH CARE -- 9.2% Abbott Laboratories................................ 13,100 475,69 American Home Products............................. 15,600 615,225 Baxter International............................... 8,000 502,500 Bristol-Myers Squibb............................... 8,200 526,338 Johnson & Johnson.................................. 8,400 782,250 Merck.............................................. 10,600 710,862 Pfizer............................................. 10,400 337,350 Schering-Plough.................................... 9,900 417,656 ---------- 4,367,875 ---------- ELECTRIC AND GAS UTILITIES -- 2.7% Unicom............................................. 13,800 462,300 Williams Companies (The)........................... 26,900 822,131 ---------- 1,284,431 ---------- ELECTRIC EQUIPMENT -- 4.8% General Electric................................... 12,100 1,872,475 Honeywell International............................ 7,300 421,119 ---------- 2,293,594 ---------- ELECTRONICS -- 2.0% Agilent Technologies*.............................. 7,000 541,187 Raytheon (Class B)*................................ 15,100 401,094 ---------- 942,281 ---------- ENERGY -- 7.1% BP Amoco (ADRs) (United Kingdom).................................. 12,500 741,406 Exxon Mobil........................................ 15,200 1,224,550 Royal Dutch Petroleum (Netherlands)..................................... 12,700 767,556 Schlumberger....................................... 9,800 551,250 Transocean Sedco Forex............................. 1,901 64,047 ---------- 3,348,809 ----------
_______________ * Non-income producing security. See Notes to Financial Statements. --P-24-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued)
Shares Value -------- ------- FINANCE AND INSURANCE -- 15.2% American General................................... 12,000 $ 910,500 American International Group ...................... 7,000 756,875 Bank of America.................................... 18,339 920,389 Bank of New York................................... 25,900 1,036,000 Chubb.............................................. 7,400 416,713 Citigroup.......................................... 17,500 972,344 Fannie Mae......................................... 8,600 536,962 Mellon Bank........................................ 18,000 613,125 Merrill Lynch...................................... 6,700 559,450 Morgan (J.P.)...................................... 3,700 468,512 ----------- 7,190,870 ----------- MACHINERY AND INDUSTRIAL EQUIPMENT -- 3.1% United Technologies................................ 22,400 1,456,000 ----------- OFFICE EQUIPMENT -- 0.9% Pitney Bowes....................................... 9,000 434,813 ----------- PAPER AND FOREST PRODUCTS -- 1.2% Mead.............................................. 12,900 560,344 ----------- PUBLISHING -- 0.8% Gannett............................................ 4,700 $ 383,344 ----------- RETAIL TRADE -- 4.2% May Department Stores.............................. 14,350 462,786 Wal-Mart Stores.................................... 22,000 1,520,750 ----------- 1,983,536 ----------- TRANSPORTATION -- 0.2% United Parcel Service (Class B)....................................... 1,100 75,900 ----------- Total Common Stocks (Cost $34,872,757) ............................... 46,175,803 REPURCHASE AGREEMENTS -- 1.1% (Cost $500,000) .................................. 500,000 ----------- Total Investments -- 98.7% (Cost $35,372,757) ............................... 46,675,803 Other Assets Less Liabilities-- 1.3% .......................... 626,918 ----------- Net Assets-- 100.0%................................ $47,302,721 ===========
- -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO
Shares Value -------- ------- COMMON STOCKS -- 95.0% COMMUNICATIONS INFRASTRUCTURE -- 3.1% Aspect Communications*............................. 30,400 $1,189,400 Cisco Systems*..................................... 15,400 1,649,244 Gilat Satellite Networks* (Israel)........................................ 13,200 1,565,850 Harris............................................. 20,900 557,769 Oak Industries*.................................... 16,300 1,729,838 ---------- 6,692,101 ---------- COMMUNICATIONS SERVICES -- 3.2% AT&T--Liberty Media Group (Class A)....................................... 45,900 2,604,825 CenturyTel......................................... 20,600 975,925 Global Crossing (Bermuda)*......................... 10,100 504,684 Shares Value -------- ------- COMMUNICATIONS SERVICES (continued) ICG Communications*................................ 30,400 $ 569,050 Infonet Services*.................................. 14,000 367,500 Intermedia Communications*......................... 10,200 395,250 MCI WorldCom*...................................... 15,450 819,333 Pacific Gateway Exchange*.......................... 13,100 223,109 Qwest Communications International*................ 10,300 442,578 ---------- 6,902,254 ---------- COMPUTER AND BUSINESS SERVICES -- 4.1% Amdocs*............................................ 20,600 710,700
_________________ * Non-income producing security. See Notes to Financial Statements --P-25-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares Value ---------- ---------- COMPUTER AND BUSINESS SERVICES (continued) CSG Systems International*................. 41,100 $1,626,019 First Data*................................ 20,200 996,113 Galileo International...................... 53,400 1,598,663 Mastech*................................... 11,300 280,028 Modis Professional Services*............... 39,900 568,575 Navigant Consulting*....................... 61,000 663,375 SunGard Data Systems*...................... 97,600 2,318,000 ---------- 8,761,473 ---------- COMPUTER HARDWARE/ PERIPHERALS -- 11.7% Adaptec*................................... 67,300 3,354,484 American Power Conversion* ................ 171,300 4,512,684 Apex*...................................... 38,700 1,252,913 Comdisco................................... 26,700 994,575 Creative Technology (Singapore) .............................. 159,900 2,743,284 Electronics for Imaging*................... 97,600 5,721,800 Lanier Worldwide*.......................... 20,900 80,987 Lexmark International Group (Class A)* 29,300 2,651,650 Pitney Bowes............................... 24,300 1,173,994 Xircom*.................................... 35,100 2,632,500 ---------- 25,118,871 ---------- COMPUTER SOFTWARE -- 24.0% 3DO*....................................... 64,500 587,555 Activision*................................ 28,000 430,500 Acclaim Entertainment*..................... 65,100 335,672 Autodesk................................... 59,000 1,989,406 BMC Software*.............................. 15,300 1,222,566 Check Point Software Technologies* (Israel).................... 37,800 7,512,750 Citrix Systems*............................ 8,100 996,047 Computer Associates International............................. 25,200 1,762,425 Compuware* ................................ 106,600 3,967,519 Electronic Arts*........................... 10,100 849,031 Entrust Technologies*...................... 16,300 976,472 HNC Software*.............................. 10,100 1,070,284 Macromedia*................................ 20,400 1,491,750 Microsoft*................................. 66,900 7,808,484 Parametric Technology* .................... 167,800 4,535,844 Peregrine Systems*......................... 8,100 681,159 Rational Software*......................... 50,900 2,505,234 Symantec*.................................. 71,000 4,169,031 Shares Value ---------- ---------- COMPUTER SOFTWARE (continued) Synopsys*.................................. 96,400 $6,419,637 Tecnomatix Technologies* (Israel).................................. 12,300 350,550 Visio*..................................... 35,000 1,662,500 ---------- 51,324,416 ---------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 3.4% DII Group*................................. 30,600 2,171,644 Hadco*..................................... 26,500 1,351,500 SCI Systems*............................... 46,600 3,829,938 ---------- 7,353,082 ---------- ELECTRONICS CAPITAL EQUIPMENT -- 11.8% Applied Materials*......................... 18,300 2,317,809 Asyst Technologies*........................ 13,200 865,013 Cognex*.................................... 51,800 2,018,581 Credence Systems*.......................... 28,400 2,450,388 Electro Scientific Industries* ............ 28,200 2,053,313 KLA Tencor*................................ 12,100 1,347,259 Lam Research*.............................. 10,300 1,149,738 Novellus Systems*.......................... 46,100 5,648,691 Orbotech* (Israel)......................... 37,350 2,901,628 Sensormatic................................ 41,100 716,681 Teradyne*.................................. 57,600 3,801,600 ---------- 25,270,701 ---------- INTERNET/ONLINE -- 1.5% AppNet Systems*............................ 21,500 939,953 iXL Enterprises*........................... 18,700 1,035,513 PSINet*.................................... 8,300 513,303 Ziff-Davis*................................ 48,200 762,162 ---------- 3,250,931 ---------- MEDIA -- 14.8% Ackerley Group............................. 19,900 360,688 Adelphia Communications (Class A)*................................ 22,500 1,475,859 AMFM* ..................................... 122,500 9,585,625 Cablevision Systems (Class A)*................................ 20,500 1,547,750 CBS*....................................... 67,100 4,290,206 Charter Communications*.................... 91,800 2,008,125 Clear Channel Communications*.............. 9,200 821,100
_____________ * Non-income producing security. See Notes to Financial Statements. --P-26-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued)
Shares Value ----------- ----------- MEDIA (continued) Echostar Communications (Class A)................................... 18,300 $ 1,781,962 Fox Entertainment Group (Class A)*.................................. 61,100 1,523,681 Infinity Broadcasting (Class A)*.................................. 68,275 2,470,702 MediaOne Group*................................ 45,400 3,487,288 Rogers Communications* (Canada).................................... 31,400 777,150 USA Networks*.................................. 24,800 1,369,425 Ziff-Davis-ZDNet*.............................. 3,900 81,900 ----------- 31,581,461 ----------- SEMICONDUCTORS -- 17.4% Advanced Micro Devices*........................ 50,400 1,458,450 Amkor Technology* ............................. 185,100 5,205,938 Analog Devices*................................ 8,000 744,000 Atmel*......................................... 40,000 1,183,750 Avnet.......................................... 10,600 641,300 C-Cube Microsystems*........................... 74,100 4,635,881 Cypress Semiconductor*......................... 30,000 971,250 Dallas Semiconductor........................... 28,000 1,804,250 Fairchild Semiconductor International*.............................. 18,800 559,300 Integrated Device Technology*.................. 50,700 1,468,716 Intel.......................................... 40,300 3,315,934 Lattice Semiconductor*......................... 94,500 4,473,984 Linear Technology.............................. 20,100 1,438,406 Shares or Principal Shares Value --------- ---------- SEMICONDUCTORS (continued) Maxim Integrated Products*..................... 24,200 shs. $ 1,141,181 Microchip Technology*.......................... 45,200 3,100,438 Micron Technology*............................. 40,100 3,117,775 National Semiconductor*........................ 30,100 1,288,656 Xilinx*........................................ 12,400 563,812 ----------- 37,113,021 ----------- Total Common Stocks (Cost $131,048,415) .......................... 203,368,311 ------------ CORPORATE BONDS -- 0.1% (Cost $190,000) .............................. $ 190,000 COMPUTER SOFTWARE -- 0.1% Activision 63 1/44%, 1/1/2005+................. 189,050 ------------ REPURCHASE AGREEMENTS -- 4.6% (Cost $9,800,000) ............................ 9,800,000 ------------ Total Investments -- 99.7% (Cost $141,038,415) .......................... 213,357,361 Other Assets Less Liabilities-- 0.3% ........................... 603,888 ------------ Net Assets-- 100.0%............................ $213,961,249 ============ - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO Shares Value ----------- ----------- COMMON STOCKS -- 103.1% ADVERTISING -- 2.8% DoubleClick*.................................. 2,255 $ 571,149 Mediaplex..................................... 2,200 137,500 ------ ------------ 708,649 ------------ BUSINESS GOODS AND SERVICES -- 20.0% Acxion*....................................... 6,800 163,413 Affiliated Computer Services (Class A)*.......................... 4,400 202,400 Shares Value ----------- ----------- BUSINESS GOODS AND SERVICES (continued) Applied Graphics Technologies*................ 13,500 $ 116,016 Copart*....................................... 5,700 246,881 CoStar Group*................................. 8,460 302,974 Creo Products* (Canada)....................... 2,300 88,334 CSG Systems International*.................... 10,100 399,581 FirstService* (Canada)........................ 17,200 237,575 Harris Interactive............................ 6,600 86,419 Indus International*.......................... 21,300 258,263 Metamor Worldwide*............................ 9,800 286,038
________________ * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. --P-27-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value -------- -------- BUSINESS GOODS AND SERVICES (continued) Modis Professional Services* ............... 32,000 $ 456,000 NOVA* ...................................... 23,033 726,979 Personnel Group of America* ................ 23,800 240,975 PROVANT* ................................... 19,770 495,485 U.S. Foodservice* .......................... 33,100 554,425 Wilmar Industries* ......................... 16,600 287,387 ---------- 5,149,145 ---------- CAPITAL GOODS -- 2.3% Microchip Technology*....................... 5,600 384,125 UCAR International* ........................ 12,400 220,875 ---------- 605,000 ---------- COMPUTER HARDWARE -- 1.3% Apex* ...................................... 10,700 346,413 ---------- COMPUTER SOFTWARE and Services -- 20.6% Answerthink Consulting Group................ 2,500 86,406 Aspect Development.......................... 5,100 349,988 Avant!* .................................... 16,500 248,016 CareInsite*................................. 2,400 193,275 CBT Group (ADRs)* (Ireland)................. 7,100 238,294 Egreetings Network.......................... 2,600 26,406 Engage Technologies*........................ 6,600 397,650 Inso*....................................... 4,600 148,638 ISS Group*.................................. 5,800 412,163 JDA Software Group.......................... 7,000 113,750 Keane....................................... 3,200 101,600 Medicalogic................................. 2,500 52,890 National Instruments* ...................... 12,000 461,625 Netscout Systems............................ 3,200 99,600 Sciquest.com................................ 2,700 215,663 Structural Dynamics Research* .............. 15,500 198,109 SunGard Data Systems*....................... 9,600 228,000 THQ*........................................ 4,650 108,112 Transaction Systems Architects (Class A)* ................... 13,000 364,406 Unigraphics Solutions (Class A)............. 9,800 264,600 VerticalNet*................................ 1,500 245,297 Visio....................................... 7,900 375,250 Visual Networks............................. 2,100 166,162 Xpedior..................................... 7,300 210,103 ---------- 5,306,003 ---------- Shares Value -------- ------- CONSULTING SERVICES -- 3.8% Corporate Executive Board*.................. 2,900 $ 161,856 Forrester Research*......................... 2,900 199,194 Primark*.................................... 8,300 230,844 Professional Detailing*..................... 12,900 386,597 ---------- 978,491 ---------- CONSUMER GOODS AND SERVICES -- 4.5% Carey International*........................ 10,400 255,125 MemberWorks*................................ 16,700 553,709 Pre-Paid Legal Services*.................... 6,500 156,000 Profit Recovery Group International*........................... 3,900 103,472 SITEL*...................................... 9,800 68,600 TeleSpectrum Worldwide*..................... 4,400 30,937 ---------- 1,167,843 ---------- DRUGS AND HEALTH CARE -- 12.0% Affymetrix*................................. 1,200 203,588 Alpharma (Class A)*......................... 5,600 172,200 Barr Laboratories*.......................... 6,800 213,350 Cytyc....................................... 1,300 79,503 Dura Pharmaceuticals*....................... 14,300 199,753 Hanger Orthopedic Group*.................... 11,700 117,000 Noven Pharmaceuticals*...................... 5,600 101,850 Omnicare.................................... 16,500 198,000 Priority Healthcare (Class B)*.............. 3,000 86,906 Province Healthcare*........................ 17,100 328,641 QLT Phototherapeutics....................... 2,600 152,425 Renex*...................................... 15,200 141,075 Schein Pharmaceutical*...................... 6,800 82,450 Teva Pharmaceutical Industries (ADRs) (Israel)............... 10,100 723,097 Total Renal Care Holdings*.................. 32,800 219,350 Triangle Pharmaceuticals*................... 5,700 72,853 ---------- 3,092,041 ---------- ELECTRONICS -- 12.7% Anadigics................................... 1,400 66,194 Applied Micro Circuits*..................... 700 89,163 AVX......................................... 9,700 484,394 Burr-Brown*................................. 24,075 868,205 Cognex*..................................... 9,600 374,100
__________________ * Non-income producing security. See Notes to Financial Statements. --P-28-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued)
Shares Value ------ ----- ELECTRONICS (continued) Exar*............................................. 3,200 $ 188,600 General Semiconductor*............................ 27,800 394,412 Hadco*............................................ 3,800 193,800 Orbotech* (Israel)................................ 2,400 186,450 Photon Dynamics*.................................. 3,800 146,775 PMC-Sierra* (Canada).............................. 1,400 224,393 Veeco Instruments*................................ 800 37,425 ---------- 3,253,911 ---------- ENERGY -- 2.4% Barrett Resources*................................ 3,400 100,088 Cabot Oil & Gas (Class A)......................... 13,700 220,056 Pride International*.............................. 7,700 112,612 Santa Fe Snyder*.................................. 21,600 172,800 ---------- 605,556 ---------- ENVIRONMENTAL MANAGEMENT -- 0.1%............ Waste Connections*................................ 1,500 21,516 ---------- FINANCIAL SERVICES -- 3.3% Affiliated Managers Group*........................ 9,600 388,200 Insignia Financial Group*......................... 15,666 136,098 Metris Companies.................................. 8,800 314,050 ---------- 838,348 ---------- INDUSTRIAL GOODS AND SERVICES -- 0.6% United Rentals*................................... 9,200 157,550 ---------- LEISURE AND ENTERTAINMENT -- 2.7% Premier Parks*.................................... 23,800 687,225 ---------- MEDIA AND BROADCASTING -- 2.9% Insight Communications (Class A)*..................................... 5,800 172,188 Pegasus Communications*........................... 3,300 319,688 SBS Broadcasting* (Luxembourg)................................... 5,200 253,337 ---------- 745,213 ---------- Shares Value ------ ----- MEDICAL PRODUCTS AND TECHNOLOGY -- 2.2% Maxygen........................................... 2,500 $ 178,438 PSS World Medical................................. 39,800 378,100 ----------- 556,538 ----------- SCHOOLS -- 2.9% Career Education*................................. 6,600 242,963 DeVRY*............................................ 5,700 106,163 ITT Educational Services*......................... 13,700 211,494 Learning Tree International*...................... 6,200 173,405 ----------- 734,025 ----------- SEMICONDUCTORS -- 0.9% Caliper Technologies.............................. 3,300 220,068 ----------- TELECOMMUNICATIONS -- 4.1% Concord Communications*........................... 2,300 102,709 Copper Mountain Networks.......................... 2,800 136,150 Illuminet Holdings................................ 2,400 131,925 Inet Technologies................................. 3,100 217,581 Network Access Solutions.......................... 4,600 149,500 Tekelec*.......................................... 10,100 226,303 TranSwitch*....................................... 1,400 101,588 ----------- 1,065,756 ----------- TRANSPORTATION -- 1.0% Expeditors International of Washington.................................. 4,000 174,500 Forward Air*...................................... 1,850 80,186 ----------- 254,686 ----------- Total Investments -- 103.1% (Cost $21,094,844) ............................ 26,493,977 Other Assets Less Liabilities-- (3.1)% ..................... (788,143) ----------- Net Assets-- 100.0%............................... $25,705,834 ===========
__________________ * Non-income producing security. See Notes to Financial Statements. --P-29-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO
Shares Value ------ ----- COMMON STOCKS -- 97.0% AUSTRALIA -- 1.5% Brambles Industries (Business Goods and Services)......................... 1,750 $ 48,405 Cochlear (Drugs and Health Care)................................ 4,800 63,826 CSL (Drugs and Health Care).................... 4,300 61,837 -------- 174,068 -------- BRAZIL -- 0.6% Telesp Participacoes (ADRs)* (Telecommunications)........................ 3,000 73,313 -------- CHINA -- 0.7% China Telecom (Hong Kong) (Telecommunications)........................ 14,000 87,528 -------- DENMARK -- 0.7% ISS International Service Systems (Business Goods and Services)............................... 1,200 80,684 -------- FINLAND -- 5.6% Nokia (Telecommunications)..................... 2,015 365,420 Sonera Group (Telecommunications)........................ 4,450 305,094 -------- 670,514 -------- FRANCE -- 4.5% Alcatel (Telecommunications)................... 910 209,036 Cap Gemini (Computer and Technology Related)......................... 696 176,707 Carrefour Supermarche (Retailing)................................. 840 154,958 -------- 540,701 -------- GERMANY -- 0.7% Adidas-Salomon (Retailing)..................... 1,150 86,318 -------- GREECE -- 0.9% Commercial Bank of Greece (Financial Services)........................ 910 70,243 National Bank of Greece* (GDRs)+ (Financial Services)........................ 2,200 30,938 -------- 101,181 -------- Shares Value ------ ----- HONG KONG -- 0.8% HSBC Holdings (Financial Services)........................... 2,800 $ 39,262 Hutchison Whampoa (Diversified)............................... 4,000 58,146 -------- 97,408 -------- HUNGARY -- 0.2% Magyar Tavkozlesi "Matav" (ADRs) (Telecommunications)................. 500 18,000 -------- IRELAND -- 2.3% Elan (ADRs)* (Drugs and Health Care)................................ 4,500 132,750 Ryanair Holdings* (Transportation)............................ 13,600 145,241 -------- 277,991 -------- ITALY -- 2.8% Banca Nazionale del Lavoro "BNL"* (Financial Services)........................ 38,000 126,723 Mediolanum (Financial Services)................ 15,430 202,094 -------- 328,817 -------- JAPAN -- 13.5% Able (Financial Services)...................... 1,000 59,847 Asahi Pretec (Industrial Goods and Services)............................... 1 26,306 Chugai Pharmaceutical (Drugs and Health Care)............................ 5,000 54,029 Cresco (Computer and Technology Related)......................... 1,000 115,392 Fancl (Consumer Goods and Services)............................... 200 53,589 H.I.S. (Entertainment and Leisure).................................... 1,300 92,676 Inter (Financial Services)..................... 1,300 32,417 Itochu Techno (Computer and Technology Related)..................... 100 62,292 Keyence (Electronics).......................... 500 202,914 Meitec (Computer and Technology Related)......................... 2,300 73,098 N.I.C. (Drugs and Health Care)................................ 2,000 81,166
_______________________ * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. --P-30-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
Shares Value ------ ---------- JAPAN (continued) Nippon Telegraph & Telephone "NTT" (Telecommunications)................ 6 $ 102,679 NTT Mobile Communication Network "NTT DoCoMo" (Telecommunications)...................... 3 115,294 Obic Business Consultants (Computer and Technology Related).................................. 500 168,688 Sanix (Consumer Goods and Services)............................. 1,000 109,525 Shidax Community (Entertainment and Leisure)............... 1,000 19,558 Sundrug (Retailing).......................... 800 55,545 Tokyo Biso Kogyo (Business Goods and Services)....................... 5,000 54,713 Touei Housing (Construction and Property)............................. 2,000 66,302 Xebio (Retailing)............................ 3,000 56,620 ---------- 1,602,650 ---------- MEXICO -- 0.6% Grupo Carso (ADRs)* (Telecommunications)...................... 7,000 69,705 ---------- NETHERLANDS -- 8.1% ASM Lithography Holding* (Electronics Capital Equipment)................................ 1,820 202,252 Equant* (Business Goods and Services)............................. 1,790 203,246 Koninklijke (Royal) Philips Electronics (Electronics)................. 1,748 237,750 KPNQwest* (Telecommunications)...................... 1,765 117,541 Numico (Consumer Goods and Services)............................. 2,650 98,892 United Pan-Europe Communications (A Shares)* (Telecommunications)...................... 810 103,641 ---------- 963,322 ---------- NORWAY -- 1.2% Tomra Systems (Business Goods and Services)............................. 8,220 139,123 ---------- Shares Value ------ ---------- SINGAPORE -- 0.6% NatSteel Electronics Group "NEL" (Electronics)....................... 8,000 $ 42,270 Venture Manufacturing (Manufacturing and Industrial Equipment)..................... 3,000 34,404 ---------- 76,674 ---------- SOUTH KOREA -- 0.4% Korea Telecom (ADRs)* (Telecommunications)...................... 670 50,083 ---------- SPAIN -- 5.6% Aguas Barcelona (Consumer Goods and Services)....................... 4,560 66,800 Aguas Barcelona* (Consumer Goods and Services)....................... 45 642 Altadis (Tobacco)............................ 6,500 92,991 Azkoyen (Manufacturing and Industrial Equipment)..................... 5,240 41,126 Telefonica Publicidad e Informacion* (Telecommunications)...................... 5,600 272,227 Terra Networks* (Computer and Technology Related)................... 3,500 191,299 ---------- 665,085 ---------- SWEDEN -- 3.2% L.M. Ericsson Telefon (Series B) (Telecommunications)...................... 4,655 299,214 Securitas (Series B) (Consumer Goods and Services)....................... 4,500 81,435 ---------- 380,649 ---------- SWITZERLAND -- 1.0% Credit Suisse Group (Financial Services)...................... 575 114,407 ---------- UNITED KINGDOM -- 10.8% Airtours (Entertainment and Leisure).............................. 8,500 51,233 Ashtead Group (Construction and Property)............................. 19,500 53,482 AstraZeneca (Drugs and Health Care).............................. 2,685 113,585
____________ * Non-income producing security. See Notes to Financial Statements. --P-31-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued)
Shares Value ------ ---------- UNITED KINGDOM (continued) Bodycote International (Industrial Goods and Services).............. 15,000 $ 72,572 British Telecommunications (Telecommunications)............. 2,500 60,679 Cable & Wireless (Telecommunications)............. 2,000 33,883 CMG (Computer and Technology Related).............. 2,800 207,777 Games Workshop Group (Retailing)...................... 4,500 33,677 Granada Group (Entertainment and Leisure)..................... 9,000 90,873 Hilton Group (Entertainment and Leisure)..................... 13,000 41,071 Parity (Computer and Technology Related).............. 21,975 132,986 PizzaExpress (Restaurants).......... 8,000 94,303 SmithKline Beecham (Drugs and Health Care)................. 3,000 38,203 Spring Group (Support Services)............... 6,500 17,933 WPP Group (Business Goods and Services).................... 15,000 236,647 --------- 1,278,904 --------- UNITED STATES -- 30.7% AES (Electric and Gas Utilities)................... 2,500 186,875 America Online* (Computer and Technology Related).......... 2,800 211,225 American International Group (Financial Services)............. 1,593 172,243 BMC Software* (Computer and Technology Related).......... 2,700 215,747 CBS* (Media)........................ 4,100 262,144 Cintas (Business Goods and Services).................... 3,700 196,447 Cisco Systems* (Computer and Technology Related).............. 2,200 235,606 Citigroup (Financial Services)...... 3,150 175,022 Coca-Cola (Consumer Goods and Services).................... 1,200 69,900 Compuware* (Computer and Technology Related).............. 6,000 223,313 Corning (Diversified)............... 1,800 232,088 Shares Value ------ ---------- UNITED STATES (continued) Disney, Walt (Entertainment and Leisure) 4,850 $ 141,863 General Electric (Diversified)...... 1,300 201,175 Halliburton (Resources)............. 3,300 132,825 Infonet Services* (Communications Services)........ 2,300 60,374 MCI WorldCom* (Telecommunications)............. 3,150 167,048 Medtronic (Drugs and Health Care)..................... 4,900 178,544 Microsoft* (Computer and Technolgy Related)............... 2,000 233,437 Procter & Gamble (Consumer Goods and Services).............. 1,900 208,169 Tyco International (Diversified).... 4,000 155,500 ----------- 3,659,545 ----------- Total Common Stocks (Cost $6,990,360)................ 11,536,670 ----------- PREFERRED STOCKS -- 1.2% GERMANY -- 1.2% Porsche (non-voting)* (Automotive & Related)........... 43 116,971 Sixt (Retailing).................... 1,350 24,754 ----------- Total Preferred Stocks (Cost $151,385).................. 141,725 ----------- CORPORATE BONDS -- 0.1% (Cost $4,920) GERMANY -- 0.1% Metro Finance 0%, 9/7/2013 (Financial Services)............. 9,000** 4,720 ----------- Total Investments -- 98.3% (Cost $7,146,665)............... 11,683,115 Other Assets Less Liabilities-- 1.7%......... 205,638 ----------- Net Assets-- 100.0% $11,888,753 ===========
____________ * Non-income producing security. ** Principal amount reported in German Deutschemarks. See Notes to Financial Statements. -- P-32 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
Shares Value -------- ------- COMMON STOCKS -- 98.0% AUSTRALIA -- 2.3% BRL Hardy (Consumer Goods and Services)................................ 9,754 $ 47,076 Cochlear (Medical Products and Technology).............................. 5,700 75,794 CSL (Medical Products and Technology).............................. 5,150 74,060 Data Advantage (Business Services).................................... 16,600 50,142 Futuris (Automotive Parts Manufacturing)............................... 32,860 46,176 Pasminco (Metals)............................... 44,000 48,251 Perpetual Trustees Australia (Financial Services)......................... 2,800 34,934 Sonic Healthcare (Drugs & Healthcare).................................. 7,800 36,621 TAB (Leisure and Hotels)........................ 22,300 40,708 -------- 453,762 -------- CANADA -- 2.5% Celestica* (Electronics)........................ 2,600 144,300 Cinar (Class B)* (Media)........................ 3,800 94,525 Clarica Life Insurance (Financial Services)......................... 4,500 80,969 Clearnet Communications (Class A)* (Telecommunications)......................... 2,650 91,259 PMC-Sierra* (Technology)........................ 500 80,141 -------- 491,194 -------- CHINA -- 0.1% Yanzhou Coal Mining (Series H) (Resources).................................. 82,000 22,680 -------- DENMARK -- 1.6% Danske Traelast (Construction and Property)................................ 909 79,933 Sondagsavisen (Media)........................... 1,819 107,046 Sydbank (Financial Services).................... 1,525 62,924 TK Development (Construction and Property)................................ 3,960 72,323 -------- 322,226 -------- FINLAND -- 0.4% Rapala Normark (Leisure and Hotels)......................... 14,300 69,155 -------- Shares Value -------- ------- FRANCE -- 3.2% Compagnie Francaise d'Etudes et de Construction Technip "Technip" (Construction and Property)................................ 1,057 $108,410 Du Pareil au Meme (Retailing)................... 887 60,679 Etam Developpement* (Retailing).................................. 1,493 38,357 L'Europeenne d'Extincteurs (Manufacturing).............................. 1,242 43,546 Royal Canin (Consumer Goods and Services).......................... 1,981 139,610 Transiciel (Computer Software).................. 2,000 241,598 -------- 632,200 -------- GERMANY -- 4.6% Beru (Automotive Parts Manufacturing)............................... 5,543 163,628 Bien-Haus (Construction and Property)................................ 2,210 34,289 Hawesko Holding (Telecommunications)......................... 3,185 102,684 Intershop Communications* (Computer Software).......................... 960 274,685 Kamps (Consumer Goods and Services)................................ 1,264 87,870 Kamps-New* (Consumer Goods and Services)................................ 882 59,093 Tecis Holding (Financial Services).................................... 2,340 96,070 Zapf Creation* (Manufacturing).............................. 2,600 86,443 -------- 904,762 -------- HONG KONG -- 2.1% ASM Pacific Technology (Electronics)................................ 16,000 28,404 Cafe de Coral Holdings (Restaurants)................................ 70,000 28,140 Dah Sing Financial Group (Financial Services)......................... 11,400 45,462 Esprit Holdings (Retailing)..................... 27,000 29,176 Giordano International (Retailing).................................. 51,000 52,486 JCG Holdings (Financial Services).................................... 60,000 33,769
_________________ * Non-income producing security. See Notes to Financial Statements. --P-33-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value -------- ------- HONG KONG (Continued) Johnson Electric Holdings (Electronics)........................................... 6,000 $ 38,515 Li & Fung (Consumer Goods and Services)........................................... 16,400 41,140 Mandarin Oriental (Leisure and Hotels)............................................. 41,000 28,700 South China Morning Post (Media)................................................. 56,000 48,267 Varitronix International (Manufacturing)......................................... 14,000 32,238 -------- 406,297 -------- IRELAND -- 2.2% Esat Telecom Group (ADSs)* (Telecommunications).................................... 2,700 250,425 Ryanair Holdings* (Transportation)........................................ 16,580 177,066 -------- 427,491 -------- ISRAEL -- 1.2% Orbotech (Manufacturing)................................. 600 46,613 Teva Pharmaceutical Industries (Drugs and Health Care)................................. 2,700 193,303 -------- 239,916 -------- JAPAN -- 11.9% Anritsu (Electronics).................................... 4,500 31,684 Asahi Diamond Industries (Manufacturing)......................................... 6,000 32,447 Asatsu-DK (Advertising) 900 60,727 Bank of Iwate (Financial Services)............................................... 1,000 41,072 Citizen Electronics (Electronics)........................ 400 72,365 The Eighteenth Bank (Financial Services).................................... 7,000 25,738 Enplas (Electronics)..................................... 1,700 63,172 Fuji Machine Manufacturing (Industrial Goods and Services)............................................... 1,000 80,579 Fujicco (Consumer Goods and Services)........................................... 4,000 78,232 Fujitec (Construction and Property)........................................... 3,000 30,070 Glory Kogyo (Manufacturing).............................. 3,000 57,794 Higashi Nihon House (Construction and Property)............................. 6,000 26,990 H.I.S. (Leisure and Hotel)............................... 1,300 92,676 Shares Value -------- ------- JAPAN (continued) Higo Bank (Financial Services)............................................... 8,000 $ 32,466 Hitachi Information Systems (Computer Software)..................................... 2,000 116,370 Hitachi Medical (Medical Products and Technology)................................ 2,000 20,927 Hogy Medical (Medical Products and Technology)......................................... 500 32,760 Hokkai Can (Paper and Printing)............................................... 5,000 10,757 Hokuto (Consumer Goods and Services)........................................... 600 32,212 Horiba Instruments (Electronics)........................................... 4,000 36,104 Iino Kaiun Kaisha (Transportation)........................................ 4,000 6,689 Iyo Bank (Financial Services)............................ 5,000 30,706 Japan Information Processing Service (Computer Software)............................................... 1,200 44,592 Kentucky Fried Chicken (Restaurants)........................................... 3,000 38,109 Kissei Pharmaceutical (Drugs and Health Care)........................................ 2,000 28,946 Komatsu Seiren (Manufacturing)......................................... 7,000 24,301 Komori (Capital Goods)................................... 2,000 38,119 Maspro Denkoh (Telecommunications).................................... 2,000 29,317 Meitec (Computer Software)............................... 1,000 31,782 Mitsubishi Gas Chemical (Chemicals)............................................. 26,000 50,597 Mitsui Home (Construction and Property)........................................... 12,000 50,577 MKC Stat (Computer Software)..................................... 1,000 41,952 Moshi Moshi Hotline (Telecommunications).................................... 300 41,365 Nichicon (Manufacturing)................................. 2,000 61,803 Nippon Broadcasting System (Media)................................................. 1,000 87,033 Nippon Seiki (Automotive Parts Manufacturing).................................... 3,000 31,391 Nishio Rent All (Construction and Property)........................................... 3,000 21,416 Nissha Printing (Paper and Printing)........................................... 7,000 41,756 Okinawa Electric Power (Electric Utilities).................................... 1,200 25,230
_______________ * Non-income producing security. See Notes to Financial Statements. --P-34-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value -------- ----------- JAPAN (continued) Olympus Optical (Electronics)............................ 2,000 $ 28,261 People Co (Consumer Goods and Services)..................................... 600 46,939 Rengo (Paper and Printing)............................... 13,000 66,741 Rohto Pharmaceutical (Drugs and Health Care)................................. 5,000 33,249 Ryoyo Electro (Electronics).............................. 2,000 31,097 Shimachu (Retailing)..................................... 1,700 23,440 Sundrug (Retailing)...................................... 1,000 69,431 Takasago International (Chemicals)............................................. 6,000 24,291 Tokyo Style (Manufacturing).............................. 3,000 24,643 Towa Pharmaceutical (Drugs and Health Care)........................................ 3,000 41,365 Tsubaki Nakashima (Manufacturing)......................................... 5,000 63,515 Tsudakoma (Manufacturing)................................ 20,000 25,621 Tsutsumi Jewelry (Retailing)............................. 2,500 68,453 Xebio (Retailing)........................................ 2,100 39,634 Yokohama Reito (Distributors)............................ 7,000 36,622 ----------- 2,324,125 ----------- LUXEMBOURG -- 0.4% SBS Broadcasting* (Media)................................ 1,800 87,694 ----------- NETHERLANDS -- 1.2% Athlon Groep (Consumer Goods and Services)........................................... 2,913 63,246 Beter Bed Holding (Retailing)............................ 3,117 83,220 Samas Groep (Manufacturing).............................. 7,463 93,235 ----------- 239,701 ----------- NORWAY -- 2.3% Ekornes (Manufacturing).................................. 16,647 166,770 Petroleum Geo-Services* (Energy)................................................ 4,713 83,873 Tandberg Television* (Media)............................. 13,740 189,800 ----------- 440,443 ----------- SINGAPORE -- 1.1% JIT Holdings (Electronics)............................... 12,000 41,789 NatSteel Electronics Group "NEL" (Manufacturing)................................... 16,000 31,894 Neptune Orient Lines (Transportation)........................................ 34,937 46,778 Shares Value -------- ----------- SINGAPORE (continued) Sembcorp Logistics (Transportation)........................................ 9,000 $ 36,476 Venture Manufacturing (Electronics)........................................... 4,500 51,606 ----------- 208,543 ----------- SPAIN -- 0.5% Enaco* (Retailing)....................................... 7,600 37,519 TelePizza* (Consumer Goods and Services)........................................... 15,794 66,832 ----------- 104,351 ----------- SWEDEN -- 1.9% Finnveden (Series B) (Manufacturing)......................................... 6,281 90,415 Mandator (Telecommunications).................................... 16,311 243,422 Munksjo (Paper and Printing)............................. 4,161 32,271 ----------- 366,108 ----------- SWITZERLAND -- 4.5% Kaba Holding (Business Services)..................................... 212 193,248 Selecta Group (Consumer Goods and Services)..................................... 522 164,079 SEZ Holding (Manufacturing).............................. 329 184,283 Swisslog Holding (Industrial Goods and Services)..................................... 1,171 342,312 ----------- 883,922 ----------- TAIWAN -- 0.1% Taiwan American Fund* (Miscellaneous)......................................... 1,700 26,987 ----------- UNITED KINGDOM -- 16.4% Ashtead Group (Construction and Property)........................................... 76,600 210,089 BTG (Technology)......................................... 7,023 98,866 Clinton Cards (Retailing)................................ 46,200 187,264 Dawsongroup (Transportation)........................................ 26,600 72,955 Domnick Hunter Group (Manufacturing)......................................... 20,000 104,206 Druck Holdings (Industrial Goods and Services)..................................... 11,500 46,986
___________________ * Non-income producing security. See Notes to Financial Statements. --P-35-- - -------------------------------------------------------------------------------- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value -------- ----------- UNITED KINGDOM (continued) F.I. Group (Computer Software).......................................... 45,176 $ 561,037 Games Workshop Group (Retailing)........................................ 9,400 70,347 GWR Group (Media)..................................... 21,000 220,871 Informa Group (Business Services).......................................... 46,426 457,117 National Express Group (Transportation)................................... 8,000 89,319 NDS Group* (ADRs) (Computer Software).......................................... 400 12,225 Parity (Computer Software)............................ 75,936 459,541 Pizza Express (Restaurants)........................... 19,500 229,863 Shire Pharmaceuticals Group* (Drugs and Health Care).............................................. 5,500 55,044 Tilbury Douglas (Construction and Property)...................................... 25,500 104,598 Torotrak* (Automotive Parts Manufacturing)..................................... 7,000 30,695 Trifast (Electrical Distribution)..................... 8,000 129,772 Trinity International Holdings (Media)............................................ 7,100 76,054 ----------- 3,216,849 ----------- UNITED STATES -- 37.3% Acxiom* (Computer Software)........................... 4,500 108,141 Affiliated Computer Services (Class A)* (Business Services).......................................... 1,200 55,200 Affiliated Managers Group* (Financial Services)............................... 2,600 105,137 Affymetrix* (Medical Products and Technology).................................... 400 67,862 Alpharma (Class A) (Medical Products and Technology)........................... 1,600 49,200 American Capital Strategies (Financial Services)............................... 1,800 40,781 Anadigics* (Electronics).............................. 400 18,913 AnswerThink Consulting Group* (Consulting Services).............................. 800 27,650 Apex* (Technology).................................... 2,700 87,412 Applied Graphics Technologies* (Paper and Printing)............................... 3,700 31,797 Applied Micro Circuits* (Electronics)...................................... 200 25,475 Aspect Development* (Computer Software)................................ 1,600 109,800 Shares Value -------- ----------- UNITED STATES (continued) Avant!* (Computer Software)........................... 4,300 $ 64,634 AVX (Electronics)..................................... 2,900 144,819 Barr Laboratories* (Drugs and Health Care)....................................... 2,000 62,750 Barrett Resources* (Energy)........................... 1,000 29,437 Burr-Brown* (Technology).............................. 6,750 243,422 Cabot Oil & Gas (Class A) (Energy)........................................... 3,400 54,612 Caliper Technologies* (Electronics)...................................... 1,000 66,687 CareInsite* (Technology).............................. 600 48,319 Carey International* (Transportation)................................... 2,900 71,141 Career Education* (Schools)........................... 1,900 69,944 CBT Group* (Computer Software).......................................... 1,900 63,769 Cognex* (Electronics)................................. 2,600 101,319 Concord Communications* (Telecommunications)............................... 600 26,794 Copart* (Retailing)................................... 1,800 77,962 Copper Mountain Networks* (Telecommunications)............................... 800 38,900 Corporate Executive Board* (Consulting Services).............................. 900 50,231 CoStar Group* (Industrial Goods and Services)................................ 2,400 85,950 Creo Products* (Computer Software).......................................... 900 34,566 CSG Systems International* (Business Services)................................ 2,900 114,731 Cytyc* (Medical Products and Technology).................................... 400 24,462 DeVRY* (Schools)...................................... 2,500 46,562 DoubleClick* (Technology)............................. 705 178,563 Dura Pharmaceuticals* (Drugs and Health Care)................................... 3,800 53,081 Egreetings Network* (Technology)....................................... 800 8,125 Engage Technologies* (Computer Software)................................ 2,200 132,550 Espeed* (Computer Software)........................... 1,100 39,222 Exar* (Manufacturing)................................. 900 53,044 Expeditors International of Washington (Transportation)................................... 1,300 56,712 FirstService* (Business Services)................................ 4,100 56,631
___________________ * Non-income producing security. See Notes to Financial Statements. --P-36-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value ------ --------- UNITED STATES (continued) Forrester Research* (Consulting Services)..................................... 900 $ 61,819 Forward Air* (Transportation).............................. 500 21,672 General Semiconductor (Technology).............................................. 7,500 106,406 Hadco* (Contract Manufacturing/ Circuit Boards)........................................... 1,100 56,100 Hanger Orthopedic Group* (Medical Products and Technology)......................... 3,400 34,000 Harris Interactive* (Communications Infrastructure)........................... 2,000 26,187 Illuminet Holdings* (Telecommunications)...................................... 700 38,478 Indus International* (Business Services)....................................... 6,200 75,175 Inet Technologies* (Telecommunications)...................................... 900 63,169 Insignia Financial Group* (Financial Services)...................................... 3,733 32,430 Inso* (Computer Software).................................. 1,200 38,775 Insight Communications* (Media)................................................... 1,500 44,531 ISS Group* (Computer Software)............................. 1,700 120,806 ITT Educational Services* (Schools)................................................. 3,700 57,119 JDA Software Group* (Computer Software)....................................... 2,400 39,000 Keane (Computer Software).................................. 900 28,575 Learning Tree International* (Business Services)....................................... 1,800 50,344 Maxygen* (Medical Products and Technology)................. 700 49,962 Mediaplex* (Computer Software)............................. 600 37,500 Medialogic* (Medical Products and Technology).............. 700 14,809 MemberWorks* (Consumer Goods and Services)................. 4,800 159,150 Metamor Worldwide* (Business Services)..................... 2,800 81,725 Metris Companies (Financial Services)...................... 2,300 82,081 Microchip Technology* (Technology).............................................. 1,800 123,469 Modis Professional Services* (Business Services)....................................... 8,600 122,550 Shares Value ------ --------- UNITED STATES (continued) National Instruments* (Technology).............................................. 3,500 $ 134,641 Netscout Systems* (Computer Software)...................... 1,100 34,237 Network Access Solutions* (Telecommunications)...................................... 1,400 45,500 NOVA* (Business Services).................................. 6,218 196,256 Noven Pharmaceuticals* (Medical Products and Technology)......................... 1,500 27,281 OM Group* (Chemicals)...................................... 3,900 134,306 Omnicare (Drugs and Health Care)........................... 4,800 57,600 Pegasus Communications* (Cable Systems and Satellite Video)....................... 900 87,188 Personnel Group of America* (Business Services)....................................... 7,400 74,925 Photon Dynamics* (Technology).............................................. 1,100 42,488 Pre-Paid Legal Services* (Business Services)....................................... 1,700 40,800 Premier Parks (Leisure and Hotels)......................... 6,400 184,800 Primark (Consumer Goods and Services)...................... 2,200 61,188 Pride International* (Energy).............................. 2,100 30,713 Priority Healthcare* (Drugs and Health Care)............... 800 23,175 Professional Detailing* (Business Services)....................................... 3,000 89,906 Profit Recovery Group International* (Financial Services)....................... 1,150 30,511 Provant* (Business Services)............................... 5,060 126,816 Province Healthcare* (Drugs and Health Care)............... 3,700 71,110 PSS World Medical* (Drugs and Health Care)................. 10,500 99,750 QLT Phototherapeutics* (Drugs and Health Care)............. 700 41,038 Renex* (Drugs and Health Care)............................. 1,500 13,923 Santa Fe Snyder* (Resources)............................................... 5,900 47,200 Schein Pharmaceutical* (Drugs and Health Care)............. 1,900 23,038 Sciquest.com* (Technology)................................. 800 63,900
__________ * Non-income producing security. See Notes to Financial Statements. --P-37-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued)
Shares Value ------ ----------- UNITED STATES (continued) Sitel* (Consumer Goods and Services)..................... 2,400 $ 16,800 Structural Dynamics Research* (Computer Software)................................... 4,400 56,239 SunGard Data Systems* (Computer Software)................................... 2,600 61,750 Tekelec* (Telecommunications)............................ 2,500 56,017 TeleSpectrum Worldwide* (Business Services)................................... 1,200 8,438 THQ* (Technology)........................................ 1,350 31,388 Total Renal Care Holdings* (Drugs and Health Care)............................... 8,433 56,396 Transaction Systems Architects (Class A)* (Technology)............................... 3,600 100,912 TranSwitch* (Telecommunications).................................. 400 29,025 Triangle Pharmaceuticals* (Drugs and Health Care)............................... 1,600 20,450 UCAR International* (Capital Goods)...................... 3,700 65,906 Unigraphics Solutions (Class A)* (Business Services)................................... 2,600 70,200 United Rentals* (Consumer Goods and Services)................................... 2,600 44,526 U.S. Foodservice* (Business Services).................... 9,200 154,100 VerticalNet* (Technology)................................ 400 65,413 Shares Value ------ ----------- UNITED STATES (continued) Visio* (Computer Software)............................... 2,100 $ 99,750 Visual Networks* (Technology)............................ 600 47,475 Waste Connections* (Industrial Goods and Services)................................... 400 5,737 Wilmar Industries* (Consumer Goods and Services)................................... 4,500 77,906 Xpedior* (Computer Software)............................. 2,200 63,319 ----------- 7,306,176 Total Common Stocks (Cost $13,779,272).................................... 19,174,582 ----------- PREFERRED STOCKS -- 0.3% (Cost $159,166) GERMANY -- 0.3% Sixt (Retailing)......................................... 2,782 51,012 ----------- Total Investments -- 98.2% (Cost $13,938,438)...................................... 19,225,594 Other Assets Less Liabilities-- 1.8%................................. 343,052 ----------- Net Assets-- 100.0%...................................... $19,568,646 ===========
- -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO
Shares Value -------- -------- COMMON STOCKS -- 97.8% AUSTRALIA -- 1.1% Cable & Wireless* (Telecommunications).................................. 40,000 $133,694 Ecorp* (Computers and Business Services).................................... 15,000 37,528 Hutchison Telecom* (Telecommunications).................................. 22,000 61,830 -------- 233,052 -------- FINLAND -- 2.7% Nokia (Telecommunications)............................... 2,380 431,613 Tietoenator (Computer Software).......................... 2,600 162,409 -------- 594,022 -------- Shares Value -------- -------- FRANCE -- 3.1% Altran Technologies (Computers and Business Services)................................ 580 $350,610 STMicroelectronics* (Electronics)........................ 1,850 284,800 STMicroelectronics* (Electronics)........................ 400 60,575 -------- 695,985 -------- GERMANY -- 3.0% ELMOS Semiconductor* (Semiconductors)...................................... 5,500 238,274 Epcos* (Telecommunications).............................. 3,000 223,665 Mannesmann (Machinery and Equipment)............................................ 850 205,872 -------- 667,811 --------
_____________ * Non-income producing security. See Notes to Financial Statements. --P-38-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares Value -------- ----------- HONG KONG -- 0.8% Elec & Eltek International Holdings (Manufacturing)........................... 150,000 $ 27,980 I-Cable Communications* (ADRs) (Media)............................................ 6,000 153,750 ----------- 181,730 ----------- ISRAEL -- 6.8% Check Point Software Technologies* (Computer Software)................................ 3,200 636,000 Gilat Satellite Networks (Telecommunications)............................... 2,000 237,250 Orbotech* (Electronics Capital Equipment)......................................... 6,000 466,125 Tecnomatix Technologies* (Computer Software)................................ 5,700 162,450 ----------- 1,501,825 ----------- JAPAN -- 15.1% Advantest (Electronics Capital Equipment)......................................... 2,000 528,066 Fujitsu (Semiconductors)............................ 5,000 227,851 Hirose Electronics (Electronics).................... 1,200 268,844 Murata Manufacturing (Electronics)...................................... 2,000 469,392 Rohm (Semiconductors)............................... 1,000 410,718 Secom (Computer and Business Services)................................. 2,000 220,027 Sharp (Electronics)................................. 13,000 332,437 Sony (Electronics).................................. 2,000 592,607 TDK (Electronics)................................... 2,000 275,963 ----------- 3,325,905 ----------- NETHERLANDS -- 3.0% ASM Lithography* (Electronics Capital Equipment)................................. 2,600 294,612 ASM Lithography Holding* (Electronics Capital Equipment)......................................... 800 88,902 Koninklijke (Royal) Philips Electronics (Electronics).......................... 2,024 275,289 ----------- 658,803 ----------- SINGAPORE -- 3.2% Creative Technology (Computer Hardware/Peripherals).............................. 17,100 293,372 Shares Value -------- ----------- SINGAPORE (continued) Elec & Eltek International Holdings (Manufacturing)........................... 45,000 $ 145,800 Informatics Holdings (Computer and Business Services)................................. 70,000 43,290 Venture Manufacturing (Electronics)...................................... 20,000 229,361 ----------- 711,823 ----------- SOUTH KOREA -- 1.1% Samsung Electronics (GDRs)+ (Electronics)...................................... 1,622 194,437 Samsung Electronics (GDRs)+ (1/2 non-voting) (Electronics)...................................... 478 37,762 SK Telecommunications Group (ADRs) (Telecommunications)........................ 554 21,260 ----------- 253,459 ----------- SWEDEN -- 1.0% L.M. Ericsson Telefon (Series B) (Communications Infrastructure).................... 3,300 212,118 ----------- SWITZERLAND -- 0.8% Miracle Holding* (Computer Software)................ 600 173,508 ----------- TAIWAN -- 2.8% Hon Hai Precision Industry (GDRs)* (Electronics Capital Equipment)............ 7,900 152,667 Siliconware Precision Industries (GDRs)* (Electronics Capital Equipment)............ 6,671 96,563 Taiwan Semiconductor Manufacturing (ADRs)* (Semiconductors)................................... 8,000 360,000 ----------- 609,230 ----------- UNITED KINGDOM -- 6.2% Cable & Wireless (Telecommunications)............................... 6,000 101,649 Celltech* (Medical Products and Technology).................................... 8,700 74,822
______________ * Non-income producing security. See Notes to Financial Statements. --P-39-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Portfolios of Investments (continued) SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued)
Shares Value -------- ----------- UNITED KINGDOM (continued) CMG (Computer and Business Services)........................................ 3,000 $ 222,618 COLT Telecom Group* (Telecommunications)............................ 5,100 263,661 Logica (Computer and Business Services)........................... 5,450 140,217 Sage Group (Computer Software)........................................ 24,000 293,588 Telewest Communications (Cable Systems & Satellite Video)....................... 18,000 96,115 Vodafone (Telecommunications)..................... 35,000 172,874 ----------- 1,365,544 ----------- UNITED STATES -- 47.1% 3DO* (Computer Software).......................... 5,700 51,923 Acclaim Entertainment (Computer Software)........................................ 3,600 18,562 Act Manufacturing* (Contract Manufacturing)................................... 4,200 158,156 Activision* (Computer Software)................... 4,700 72,262 Adaptec* (Computer Hardware/ Peripherals)..................................... 5,700 284,109 Amdocs* (Computer and Business Services)........................... 8,000 276,000 American Power Conversion* (Computer Hardware/ Peripherals) ................ 10,700 281,878 Amkor Technology* (Semiconductors)................................. 14,800 416,250 Apex* (Computer Hardware/Peripherals)............. 5,750 186,156 Arrow Electronics* (Semiconductors)................................. 1,100 27,913 Artesyn Technologies* (Computer Hardware/Peripherals)............................ 2,900 60,809 Autodesk (Computer Software)...................... 4,000 134,875 Avnet (Semiconductors)............................ 1,100 66,550 BMC Software* (Computer Software)................. 1,700 135,841 Caliper Technologies* (Semiconductors)................................. 3,000 200,063 C-Cube Microsystems* (Semiconductors)................................. 4,000 250,250 Citrix Systems* (Computer Software)............... 1,000 122,969 Cognex* (Electronics Capital Equipment)........... 3,400 132,494 Shares Value -------- ----------- UNITED STATES (continued) Computer Associates International (Computer Software)........................................ 1,700 $ 118,894 Compuware* (Computer Software).................... 11,400 424,294 Credence Systems* (Electronics Capital Equipment)............................... 2,300 198,447 CSG Systems International* (Computer and Business Services)................. 2,500 98,906 Dallas Semiconductor (Semiconductors)................................. 2,300 148,206 Deltathree.com* (Telecommunications)............................. 500 12,844 DII Group* (Contract Manufacturing)............... 2,300 163,228 Electro Scientific Industries* (Electronics Capital Equipment).................. 2,900 211,156 Electronic Arts* (Computer Software).............. 1,100 92,469 Electronics for Imaging* (Electronics).................................... 5,700 334,163 Entrust Technologies* (Computer and Business Services)................. 2,100 125,803 Global Telesystems* (Telecommunications)............................. 6,400 221,600 Hadco* (Contract Manufacturing)................... 3,400 173,400 HNC Software* (Computer Software).............................. 2,000 211,938 Lattice Semiconductor* (Semiconductors)................................. 10,300 487,641 Lexmark International Group (Class A)*(Computer Hardware/Peripherals)............................ 2,200 199,100 Linear Technology (Semiconductors)................................. 2,200 157,438 Mastech* (Computer and Business Services)......... 100 2,478 Microchip Technology* (Semiconductors)................................. 3,100 212,641 Micron Technology* (Semiconductors)................................. 2,300 178,825 Microsoft* (Computer Software).................... 4,600 536,906
______________ *Non-income producing security. See Notes to Financial Statements. --P-40-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------
December 31, 1999 - ------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued) Shares Value -------- ---------- UNITED STATES (continued) Navigant Consulting* (Computer and Business Services)........................... 11,400 $ 123,975 Novellus Systems* (Electronics Capital Equipment)............................... 4,000 490,125 NTL* (Telecommunications)......................... 2,362 294,364 Pacific Gateway Exchange* (Telecommunications)............................. 1,800 30,656 Parametric Technology* (Computer Software).............................. 10,300 278,422 Peregrine Systems* (Computer Software)........................................ 2,200 185,006 Rational Software* (Computer Software)........................................ 4,600 226,406 Rogers Communications (Class B)* (Media)............................... 6,300 155,925 Rudolph Technologies* (Electronics Capital Equipment)....................................... 3,000 100,500 SCI Systems* (Contract Manufacturing)................................... 2,300 189,031 Sensormatic Electronics* (Electronics).................................... 1,100 19,181 Shares Value -------- ----------- UNITED STATES (continued) Somera Communications* (Communications Infrastructure).................................. 3,500 $ 43,422 SunGard Data Systems* (Computer And Business Services)........................................ 5,700 135,375 Symantec* (Computer Software)..................... 5,700 334,697 Synopsys* (Computer Software)..................... 4,300 286,353 Teradyne* (Electronics Capital Equipment)....................................... 3,700 244,200 TSI International Software* (Computer Software).............................. 1,100 62,219 Ziff-Davis* (Media)............................... 2,000 31,625 ----------- 10,418,919 ----------- Total Investments -- 97.8% (Cost $12,482,274) .............................. 21,603,734 Other Assets Less Liabilities-- 2.2% ......................... 483,613 ----------- Net Assets-- 100.0% .............................. $22,087,347 ===========
- -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO
Principal Shares Value --------- ---------- CORPORATE BONDS -- 80.7% ADVERTISING -- 0.1% Adams Outdoor Advertising 10-3/4%, 3/15/2006 .............................. $ 25,000 $ 26,125 ---------- AEROSPACE -- 0.1% Condor Systems 11-7/8%, 5/1/2009+ ....................................... 50,000 37,813 ---------- AUTOMOTIVE AND RELATED -- 0.3% Diamond Triumph Automotive 9-1/4%, 4/1/2008+ ............................... 110,000 77,550 Principal Shares Value --------- ---------- BROADCASTING -- 0.9% AMFM Operating 12-5/8%, 10/31/2006 ...................................... $ 51,800 $ 59,052 Capstar Broadcasting 0%, (12-3/4% **), 2/1/2009 .......................... 125,000 111,875 Cumulus Media 10-3/8%, 7/1/2008 ........................................ 70,000 73,150 ---------- 244,077 ---------- BUSINESS SERVICES -- 1.4% AKI 10-1/2%, 7/1/2008 ............................ 55,000 49,225 Iron Age 9-7/8%, 5/1/2008 ........................ 250,000 186,250
__________ + Rule 144A security. * Non-income producing security. ** Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-41-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued)
Principal Amount Value --------- --------- BUSINESS SERVICES (continued) Iron Age Holding 0% (12-1/8%**), 5/1/2009 ....................... $ 80,000 $20,400 Muzak 9-7/8%, 3/15/2009 ........................... 100,000 96,500 Pierce Leahy 11-1/8%, 7/15/2006.................... 25,000 26,625 --------- 379,000 --------- CABLE SYSTEMS AND SATELLITE VIDEO -- 6.3% Avalon Cable Holdings 0%, (11-7/8%**), 12/1/2008 ........................... 125,000 82,188 Charter Communications Southeast Holdings 0%, (9.92%**), 4/1/2011............................... 450,000 266,062 GCI 9-3/4%, 8/1/2007............................... 245,000 229,075 Golden Sky Systems 12-3/8%, 8/1/2006 ......................................... 350,000 374,500 Northland Cable Television 10-1/4%, 11/15/2007 ............................ 150,000 151,125 Pegasus Communications 9-3/4%, 12/1/2006....................................... 85,000 86,275 Pegasus Communications 12-1/2%, 8/1/2007+ ............................. 200,000 219,000 Rogers Cablesystems 11%, 12/1/2015 ..................................... 135,000 149,175 United Pan-Europe Communications (Netherlands) 10-7/8%, 11/1/2007+............................. 70,000 71,400 United Pan-Europe Communications (Netherlands) 11-1/4%,11/1/2009+.............................. 75,000 77,343 --------- 1,706,143 --------- CHEMICALS -- 2.4% Koppers Industry 9-7/8%, 12/1/2007 ..................................... 175,000 160,125 Lyondell Chemical (Series B) 9-7/8%, 5/1/2007 .............................. 100,000 102,500 Lyondell Chemical 10-7/8%, 5/1/2009 ......................................... 170,000 175,950 Texas Petrochemicals 11-1/8%, 7/1/2006 ......................................... 225,000 199,125 --------- 637,700 --------- Principal Amount Value --------- --------- COMMUNICATIONS INFRASTRUCTURE -- 2.1% Crown Castle International 0% (10-5/8%**),11/15/2007 ........................... $ 75,000 $ 56,719 Pinnacle Holdings 0% (10%**), 3/15/2008 ............................... 625,000 412,500 SpectraSite Holdings 0% (11-1/4%**), 4/15/2009 ........................... 175,000 94,062 --------- 563,281 --------- CONSUMER PRODUCTS -- 1.9% Anchor Advanced Products 11-3/4%, 4/1/2004 ................................ 225,000 185,625 Diamond Brand Operating 10-1/8%, 4/15/2008 ............................... 125,000 96,875 French Fragrances (Series B) 10-3/8%, 5/15/2007 ............................... 125,000 123,125 Moll Industries 10-1/2%, 7/1/2008 ......................................... 80,000 32,400 United Industries 9-7/8%, 4/1/2009 ......................................... 90,000 82,575 --------- 520,600 --------- CONTAINERS -- 0.6% BPC Holding 12-1/2%, 6/15/2006 ........................................ 176,000 169,840 --------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 1.9% Hadco 9-1/2%, 6/15/2008 ........................... 160,000 155,600 MCMS 9-3/4%, 3/1/2008 ............................. 235,000 118,675 Viasystems 9-3/4%, 6/1/2007 ....................... 450,000 240,750 --------- 515,025 --------- ENERGY -- 0.4% Abraxas Petroleum 11-1/2%, 11/1/2004 ........................................ 105,000 96,075 --------- ENVIRONMENTAL SERVICES -- 1.3% Allied Waste North America 10%, 8/1/2009+ ................................... 375,000 337,500 --------- EQUIPMENT -- 2.2% Neff 10-1/4%, 6/1/2008 ............................ 150,000 144,750 Universal Compression Holdings 0% (11-3/8%**), 2/15/2009 ........................ 145,000 77,575
___________ + Rule 144A security. ** Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-42-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value -------- ---------- EQUIPMENT (continued) Williams Scotsman 9-7/8%, 6/1/2007............................. $375,000 $ 361,875 ---------- 584,200 ---------- FINANCIAL SERVICES -- 2.1% AMRESCO 10%, 3/15/2004................ 150,000 95,250 Dollar Financial Group 10-7/8%, 11/15/2006........................... 225,000 226,125 Ocwen Capital Trust I 10-7/8%, 8/1/2027............................. 200,000 129,000 Veritas Capital Trust 10%, 1/1/2028............................. 145,000 109,112 ---------- 559,487 ---------- FOOD -- 1.2% AFC Enterprises 10-1/4%, 5/15/2007............................ 110,000 111,237 AmeriKing 10-3/4%, 12/1/2006.......... 130,000 120,250 Carrols 9-1/2%, 12/1/2008............. 85,000 77,775 Packaged Ice 9-3/4%, 2/1/2005......... 15,000 13,800 ---------- 323,062 ---------- GAMING/HOTEL -- 4.5% Alliance Gaming 10%, 8/1/2007......... 75,000 43,875 Ameristar Casino 10-1/2%, 8/1/2004............................. 225,000 229,500 Casino Magic of Louisiana 13%, 8/15/2003............................ 30,000 34,013 Hollywood Casino 11-1/4%, 5/1/2007............................. 170,000 178,500 Trump Atlantic City Funding 11-1/4%, 5/1/2006.................... 580,000 472,700 Trump Hotels & Casino Resorts Funding 15-1/2%, 6/15/2005........... 310,000 256,525 ---------- 1,215,113 ---------- HEALTH CARE/MEDICAL PRODUCTS -- 3.5% ALARIS Medical 9-3/4%, 12/1/2006............................ 185,000 160,950 ALARIS Medical 0% (11-1/8%**), 8/1/2008................ 225,000 93,656 Dade International 11-1/8%, 5/1/2006............................. 225,000 220,500 Principal Amount Value --------- ---------- HEALTH CARE/MEDICAL PRODUCTS (continued) Everest Healthcare Services 9-3/4%, 5/1/2008..................... $135,000 $127,575 Global Health Sciences 11%, 5/1/2008............................. 345,000 215,625 Paracelsus Healthcare 10%, 8/15/2006............................ 225,000 124,875 --------- 943,181 --------- INDUSTRIAL/ MANUFACTURING -- 3.5% Airxcel 11%, 11/15/2007............... 215,000 197,800 Alliance Laundry System 9-5/8%, 5/1/2008............................. 215,000 183,825 Coyne International Enterprises 11-1/4%, 6/1/2008.................... 155,000 139,500 Day International Group 9-1/2%, 3/15/2008............................ 165,000 138,600 Great Lakes Acquisition 0% (13-1/8%**), 5/15/2009............... 75,000 40,875 Great Lakes Carbon 10-1/4%, 5/15/2008............................ 245,000 233,975 --------- 934,575 --------- INTERNET AND RELATED -- 5.2% Exodus Communications 11-1/4%, 7/1/2008............................. 260,000 269,750 Exodus Communications 10-3/4%, 12/15/2009+.......................... 55,000 56,238 PSINet 10%, 2/15/2005................. 175,000 173,906 PSINet 10-1/2%, 12/1/2006+............ 115,000 116,438 PSINet 11-1/2%, 11/1/2008............. 90,000 94,500 PSINet 11%, 8/1/2009.................. 185,000 191,475 Splitrock Services 11-3/4%, 7/15/2008............................ 80,000 75,200 Verio 13-1/2%, 6/15/2004.............. 175,000 192,937 Verio 10-3/8%, 4/1/2005............... 85,000 87,125 Verio 11-1/4%, 12/1/2008.............. 105,000 110,775 Verio 10-5/8%, 11/15/2009+............ 25,000 25,750 --------- 1,394,094 --------- LEISURE -- 1.1% Affinity Group Holding 11%, 4/1/2007............................. 300,000 286,500 --------- - ---------- + Rule 144A security. ** Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-43-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value --------- ---------- METALS -- 0.1% Renco Metals 11-1/2%, 7/1/2003............................. $ 25,000 $ 21,125 Royal Oak Mines 12-3/4%, 8/15/2006*........................... 225,000 10,125 ---------- 31,250 ---------- MOBILE SATELLITE SERVICES -- 2.2% GlobalStar 11-1/4%, 6/15/2004......... 355,000 244,950 GlobalStar 10-3/4%, 11/1/2004......... 230,000 155,250 Loral Space & Communications 9-1/2%, 1/15/2006.................... 50,000 45,250 ORBCOMM Global 14%, 8/15/2004............................ 225,000 163,125 ---------- 608,575 ---------- PAGING -- 3.0% Metrocall 9-3/4%, 11/1/2007........... 350,000 208,250 Metrocall 11%, 9/15/2008.............. 365,000 220,825 Paging Network 10%, 10/15/2008........................... 715,000 210,925 ProNet 11-7/8%, 6/15/2005............. 265,000 181,525 ---------- 821,525 ---------- PAPER AND PACKAGING -- 0.3% Crown Paper 11%, 9/1/2005............. 120,000 73,800 ---------- PRINTING AND PUBLISHING -- 8.6% Advanstar Communications 9-1/4%, 5/1/2008..................... 125,000 118,281 American Lawyer Media 9-3/4%, 12/15/2007........................... 175,000 170,625 American Media Operations 10-1/4%, 5/1/2009.................... 285,000 287,137 Liberty Group Publishing 9-3/8%, 2/1/2008............................. 225,000 201,375 Liberty Group Publishing 0% (11-5/8%**), 2/1/2009................ 400,000 225,000 NBC Acquisition 0% (10-3/4%**), 2/15/2009............... 420,000 226,800 Nebraska Book 8-3/4%, 2/15/2008............................ 40,000 35,400 Perry-Judd 10-5/8%, 12/15/2007........ 190,000 171,950 Principal Amount Value --------- ------- PRINTING AND PUBLISHING (continued) Regional Independent Media Group 10-1/2%, 7/1/2008.............. $250,000 $254,688 TDL Infomedia Holdings 0% (15-1/2%**), 10/15/2010+............. 600,000 324,000 TransWestern Holdings 0% (11-7/8%**), 11/15/2008.............. 250,000 181,875 Von Hoffman Press 10-7/8%, 5/15/2007+........................... 110,000 108,625 ---------- 2,305,756 ---------- RETAILING -- 1.7% Central Tractor 10-5/8%, 4/1/2007..... 140,000 129,500 Cole National Group 9-7/8%, 12/31/2006........................... 25,000 18,750 Frank's Nursery & Crafts 10-1/4%, 3/1/2008............................. 110,000 79,750 Musicland Group 9-7/8%, 3/15/2008............................ 140,000 130,200 TM Group Holdings 11%, 5/15/2008............................ 115,000 113,563 ---------- 471,763 ---------- SEMICONDUCTORS -- 4.4% Advanced Micro Devices 11%, 8/1/2003............................. 485,000 486,213 Amkor Technology 10-1/2%, 5/1/2009+............................ 325,000 325,000 Asat Finance 12-1/2%, 11/1/2006+........................... 35,000 37,800 Fairchild Semiconductor 10-3/8%, 10/1/2007............................ 130,000 134,225 Therma-Wave 10-5/8%, 5/15/2004............................ 185,000 191,475 ---------- 1,174,713 ---------- TELECOMMUNICATIONS -- 11.5% BTI Telecom 10-1/2%, 9/15/2007........ 275,000 257,125 CapRock Communications 12%, 7/15/2008............................ 275,000 286,000 CapRock Communications 11-1/2%, 5/1/2009............................. 65,000 66,706 Global Crossing Holding 9-1/2%, 11/15/2009+.......................... 300,000 297,000 - ---------- + Rule 144A security. * Non-income producing security. ** Deferred interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-44-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value --------- ----------- TELECOMMUNICATIONS (continued) GlobeNet Communications 13%, 7/15/2007+................... $200,000 $ 204,750 ICG Holdings 0% (11-5/8%**), 3/15/2007..................... 250,000 163,750 Metromedia Fiber Network 10%, 12/15/2009............... 90,000 92,700 NEXTLINK Communications 12-1/2%, 4/15/2006............ 400,000 433,000 NEXTLINK Communications 10-3/4%, 6/1/2009............. 100,000 103,250 NEXTLINK Communications 10-1/2%, 12/1/2009+........... 75,000 76,500 Talton Holdings 11%, 6/30/2007..................... 155,000 148,025 Viatel 11-1/4%, 4/15/2008....... 115,000 114,713 Viatel 11-1/2%, 3/15/2009....... 175,000 178,061 Williams Communications 10-7/8%, 10/1/2009............ 50,000 52,500 World Access 13-1/4%, 1/15/2008..................... 285,000 257,925 Worldwide Fiber 12%, 8/1/2009+..................... 350,000 362,250 --------- 3,094,255 --------- TEXTILE -- 0.2% Supreme International 12-1/4%, 4/1/2006...................... 55,000 54,931 --------- TRANSPORTATION -- 0.9% Atlas Air 10-3/4%, 8/1/2005..... 225,000 230,625 --------- UTILITIES -- 0.6% Midland Cogeneration Venture 11-3/4%, 7/23/2005............ 140,000 152,836 --------- WIRELESS TELEPHONY -- 4.2% American Cellular 10-1/2%, 5/15/2008..................... 175,000 194,688 Centennial Cellular 10-3/4%, 12/15/2008.................... 225,000 241,875 Nextel Communications 0% (10.65%**), 9/15/2007......... 95,000 71,250 Nextel Communications 9-3/8%, 11/15/2009+................... 90,000 88,650 Principal Amount of Shares Value --------- -------- WIRELESS TELEPHONY (continued) Powertel 11-1/8%, 6/1/2007...... $190,000 $ 199,500 Price Communications Wireless 11-3/4%, 7/15/2007............ 300,000 328,500 ----------- 1,124,463 ----------- Total Corporate Bonds (Cost $24,800,828)............ 21,695,433 ----------- PREFERRED STOCKS -- 8.7% BROADCASTING -- 1.3% Capstar Broadcasting Partnership 12%............... 1,135 shs. 128,539 Cumulus Media 13-3/4%........... 60 67,350 Sinclair Capital 11-5/8%........ 1,500 145,875 ----------- 341,764 ----------- CABLE SYSTEMS AND SATELLITE VIDEO -- 0.9% Pegasus Communications (Series A) 12-3/4%............ 178 187,345 Pegasus Communications (units) 12-3/4%............... 50 55,750 ----------- 243,095 ----------- CELLULAR -- 1.1% Dobson Communications 13%....... 63 68,827 Rural Cellular 11-3/8%.......... 227 233,243 ----------- 302,070 ----------- COMMUNICATIONS INFRASTRUCTURE -- 0.7% Crown Castle International 12-3/4%....................... 174 180,525 ----------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 0.2% MCMS 12-1/2%.................... 1,531 64,685 ----------- HEALTH CARE/MEDICAL PRODUCTS -- 0.2% River Holding 11-1/2%........... 979 58,985 ----------- -------- + Rule 144A security. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. See Notes to Financial Statements. --P-45-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Shares Value ---------- ---------- INDUSTRIAL/ MANUFACTURING -- 0.4% Day International Group 12-1/4%.. 132 $ 102,768 ---------- PRINTING AND PUBLISHING -- 0.9% Liberty Group Publishing 14-3/4%......................... 11,017 245,128 ---------- TELECOMMUNICATIONS -- 2.1% Global Crossing Holding 10-1/2%......................... 2,500 251,875 IXC Communications 12-1/2%....... 182 200,655 Nextlink Communications 14%.............. 1,948 104,705 ---------- 557,235 ---------- WIRELESS TELEPHONY -- 0.9% Nextel Communications 11-1/8%.... 253 253,632 ---------- Total Preferred Stocks (Cost $2,499,008)............... 2,349,887 ---------- CONVERTIBLE PREFERRED STOCKS -- 0.5% INTERNET AND RELATED -- 0.2% Verio 6-3/4%+.................... 710 40,115 ---------- TELECOMMUNICATIONS -- 0.3% Global Crossing 7%+.............. 305 85,934 ---------- Total Convertible Preferred Stocks (Cost $111,750)................. 126,049 ---------- Shares, Rights or Warrants Value -------------- ---------- COMMON STOCKS/RIGHTS/ WARRANTS -- 2.3% BROADCASTING -- 1.0% AMFM*............................ 3,500 shs. $ 273,875 ---------- ENERGY -- 0.1% Abraxas Petroleum*............... 8,942 rts. 898 Abraxas Petroleum................ 8,943 shs. 8,384 ---------- 9,282 ---------- TELECOMMUNICATIONS -- 0.1% Splitrock Services (Warrants expiring 7/15/2008)*............ 300 wts. 5,962 World Access..................... 895 shs. 17,229 ---------- 23,191 ---------- WIRELESS TELEPHONY -- 1.1% Price Communications............. 11,000 305,938 ---------- Total Common Stocks/Rights/ Warrants (Cost $320,967) ....... 612,286 ---------- REPURCHASE AGREEMENTS -- 3.7% (Cost $1,000,000) .............. 1,000,000 ---------- Total Investments -- 95.9% (Cost $28,732,553) ............. 25,783,655 Other Assets Less Liabilities -- 4.1% ....... 1,108,353 ----------- Net Assets -- 100.0% ............ $26,892,008 =========== - --------- + Rule 144A security. * Non-income producing security. See Notes to Financial Statements. --P-46-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO Shares Value ---------- ---------- COMMON STOCKS -- 64.3% AEROSPACE/DEFENSE -- 0.4% General Dynamics....................... 600 $ 31,650 ---------- AUTOMOTIVE AND RELATED -- 1.6% DaimlerChrysler........................ 899 70,347 Ford Motor............................. 1,300 69,469 ---------- 139,816 ---------- CHEMICALS -- 0.8% duPont (E.I.) de Nemours............... 1,000 65,875 ---------- COMMUNICATIONS -- 5.2% AT&T................................... 2,600 131,950 GTE.................................... 1,300 91,731 MCI WorldCom*.......................... 1,800 95,456 SBC Communications..................... 2,679 130,601 ---------- 449,738 ---------- COMMUNICATIONS EQUIPMENT -- 1.7% Lucent Technologies.................... 1,100 82,294 Nortel Networks........................ 600 60,600 ---------- 142,894 ---------- COMPUTER AND BUSINESS SERVICES -- 13.3% America Online*........................ 700 52,806 Applied Materials*..................... 1,100 139,322 Cisco Systems*......................... 1,200 128,512 Dell Computer*......................... 1,200 61,162 Electronic Data Systems................ 1,850 123,834 Hewlett-Packard........................ 500 56,969 Intel.................................. 1,800 148,106 International Business Machines.............................. 1,000 108,000 Microsoft*............................. 2,600 303,469 Xerox.................................. 1,000 22,689 ---------- 1,144,869 ---------- CONSUMER GOODS AND SERVICES -- 7.9% Anheuser-Busch......................... 900 63,787 Bestfoods.............................. 1,400 73,587 Clorox................................. 1,500 75,563 Coca-Cola.............................. 1,000 58,250 ConAgra................................ 2,400 54,150 Gillette............................... 1,500 61,781 Shares Value CONSUMER GOODS -------- --------- AND SERVICES (continued) PepsiCo................................ 2,300 $ 81,075 Philip Morris.......................... 2,100 48,694 Procter & Gamble....................... 900 98,606 Sara Lee............................... 2,800 61,775 ---------- 677,268 ---------- DRUGS AND HEALTH CARE -- 6.1% Abbott Laboratories.................... 1,500 54,469 American Home Products................. 1,900 74,931 Baxter International................... 1,000 62,813 Bristol-Myers Squibb................... 1,000 64,188 Johnson & Johnson...................... 1,000 93,125 Merck.................................. 1,200 80,475 Pfizer................................. 1,300 42,169 Schering-Plough........................ 1,200 50,625 ---------- 522,795 ---------- ELECTRIC AND GAS UTILITIES -- 1.8% Unicom................................. 1,600 53,600 Williams Companies (The)............... 3,200 97,800 ---------- 151,400 ---------- ELECTRICAL EQUIPMENT -- 2.9% Honeywell International................ 900 51,919 General Electric....................... 1,300 201,175 ---------- 253,094 ---------- ELECTRONICS -- 1.3% Agilent Technologies*.................. 800 61,850 Raytheon (Class B)*.................... 1,800 47,813 ---------- 109,663 ---------- ENERGY -- 4.5% BP Amoco plc (ADRs) (United Kingdom)...................... 1,400 83,037 Exxon Mobil............................ 1,792 144,368 Royal Dutch Petroleum (Netherlands)......................... 1,400 84,613 Schlumberger........................... 1,200 67,500 Transocean Sedco Forex................. 232 7,842 ---------- 387,360 ---------- - --------- * Non-income producing security See Notes to Financial Statements. --P-47-- Seligman Portfolios, Inc. - --------------------------------------------------------------- Portfolios of Investments (continued) - --------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO Shares or Principal Amount Value ---------- ---------- FINANCE AND INSURANCE -- 9.9% American General....................... 1,400 shs. $ 106,225 American International Group........... 875 94,609 Bank of America........................ 2,421 121,504 Bank of New York....................... 3,100 124,000 Chubb.................................. 900 50,681 Citigroup.............................. 2,100 116,681 Fannie Mae............................. 1,100 68,681 Mellon Financial....................... 2,100 71,531 Merrill Lynch.......................... 500 41,750 Morgan (J.P.).......................... 450 56,981 ---------- 852,643 ---------- MACHINERY AND INDUSTRIAL EQUIPMENT -- 2.0% United Technologies.................... 2,700 175,500 ---------- OFFICE EQUIPMENT -- 0.6% Pitney Bowes........................... 1,100 53,144 ---------- PAPER AND FOREST PRODUCTS -- 0.8% Mead................................... 1,500 65,156 ---------- PUBLISHING -- 0.6% Gannett................................ 600 48,937 ---------- RETAIL TRADE -- 2.7% May Department Stores.................. 1,650 53,213 Wal-Mart Stores........................ 2,600 179,725 ---------- 232,938 ---------- TRANSPORTATION -- 0.2% United Parcel Service (Class B)............................. 300 20,700 ---------- Total Common Stocks (Cost $5,084,473) .................... 5,525,440 ---------- CORPORATE BONDS -- 22.0% AUTOMOTIVE AND RELATED --1.1% Dana 6-1/2%, 3/1/2009.................. $100,000 91,129 ---------- Principal Amount Value --------- ---------- CHEMICALS -- 1.2% Lyondell Chemical 9-5/8%, 5/1/2007............................. $100,000 $102,750 ---------- COMMUNICATIONS -- 1.9% AT&T Canada 7.65%, 9/15/2006............................ 50,000 49,846 Qwest Communications 0%, 10/15/2007........................... 50,000 40,750 US West Communications 7.20%, 11/1/2004..................... 75,000 74,632 ---------- 165,228 ---------- COMPUTER AND BUSINESS SERVICES -- 2.1% Dell Computer 6.55%, 4/15/2008............................ 100,000 93,844 First Data 5.8%, 12/15/2008........... 100,000 88,195 ---------- 182,039 ---------- DIVERSIFIED -- 0.8% Textron 6-3/8%, 7/15/2004............. 70,000 67,586 ---------- DRUGS AND HEALTHCARE -- 2.8% American Home Products 7.90%, 2/15/2005..................... 75,000 77,043 Boston Scientific 6-5/8%, 3/15/2005.................... 75,000 69,188 Guidant 6.15%, 2/15/2006.............. 100,000 92,364 ---------- 238,595 ---------- ENERGY -- 1.1% Phillips Petroleum 6-3/8%, 3/30/2009.................... 100,000 92,607 ---------- FINANCE AND INSURANCE -- 7.3% Allstate 7.20%, 12/1/2009............. 75,000 72,959 - ----------- * Non-income producing security See Notes to Financial Statements. --P-48-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Principal Amount Value --------- ---------- FINANCE AND INSURANCE (continued) Associates Corp. of North America 5-3/4%, 11/1/2003.......... $100,000 $ 95,292 Bank of New York 7.30%, 12/1/2009................... 75,000 73,607 Dime Bancorp 7%, 7/25/2001.......... 50,000 49,322 First USA Bank 6-1/8%, 6/25/2001.................. 100,000 99,076 Ford Motor Credit 5.8%, 1/12/2009.................... 100,000 88,900 Heller Financial 6.50%, 7/22/2002................... 55,000 54,012 Household Finance 6%, 5/1/2004....................... 100,000 95,042 ---------- 628,210 ---------- INDUSTRIAL GOODS AND SERVICES -- 0.4% Deere 6.55%, 7/14/2004.............. 40,000 38,905 ---------- MEDIA -- 0.5% CSC Holdings 7.25%, 7/15/2008................... 50,000 47,625 ---------- RETAIL TRADE -- 2.0% Nordstrom 5-5/8%, 1/15/2009......... 50,000 43,459 Staples 7-1/8%, 8/15/2007........... 75,000 71,541 Wal-Mart 6.55%, 8/10/2004........... 55,000 54,143 ---------- 169,143 ---------- TRANSPORTATION -- 0.8% Delta Air Lines 7.70%, 12/15/2005.................. 75,000 73,847 ---------- Total Corporate Bonds (Cost $1,978,459).................. 1,897,664 ---------- Principal Amount Value --------- ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 12.3% FHLMC GOLD 5-1/2%, 7/1/2013+.................. $277,637 $ 258,145 Federal National Mortgage Association:+ 6%, 11/1/2010...................... 91,805 88,573 6%, 12/1/2028...................... 190,343 174,323 Government National Mortgage Association, Mortgage-backed Pass-through Certificates:+ 6%, 12/20/2028..................... 192,124 174,455 6-1/2%, 12/15/2028................. 285,753 268,520 US Government Gtd. Title XI (Bay Transportation) 7.30%, 6/1/2021.................... 93,000 90,951 ---------- Total US Government and Government Agency Securities (Cost $1,125,071) ................. 1,054,967 ---------- ASSET-BACKED SECURITIES+ -- 2.0% ELECTRIC AND GAS UTILITIES -- 1.1% Peco Energy 6.05%, 3/1/2009 ................... 100,000 93,461 PP&L Transition 6.83%, 3/25/2007 .................. 75,000 74,597 ---------- Total Asset-Backed Securities (Cost $174,857) ................... 168,058 ---------- Total Investments -- 100.6% (Cost $8,362,860) ................. 8,646,129 Other Assets Less Liabilities -- (0.6)% ........ (51,615) ---------- Net Assets -- 100.0% ............... $8,594,514 ========== - ----------- + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements. --P-49-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO Shares Value -------- -------- COMMON STOCKs -- 97.3% AUSTRALIA -- 1.1% Colonial (Financial Services).............. 16,800 $ 75,126 Rio Tinto (Metals)......................... 1,100 23,635 Telstra (Telecommunications)............... 2,400 13,049 -------- 111,810 -------- FINLAND -- 3.1% Nokia (Telecommunications)................. 1,201 217,801 Sonera Group (Telecommunications)...................... 1,500 102,841 -------- 320,642 -------- FRANCE -- 10.5% Aventis* (Drugs and Health Care).............................. 2,143 123,515 AXA-UAP (Insurance)........................ 887 123,682 Banque Nationale de Paris (Banking)................................. 1,334 123,111 Cap Gemini (Business Services)............. 453 115,012 Castorama Dubois Investments (Retailing)................... 251 76,371 STMicroelectronics (Electronics)........... 661 101,758 TOTAL Fina (B Shares) (Resources)............................... 1,342 179,149 Valeo (Manufacturing)...................... 1,078 83,193 Vivendi (Industrial Goods and Services)................................. 1,628 147,045 --------- 1,072,836 --------- GERMANY -- 10.7% Bayerische Hypo-und Vereinsbank (Banking)..................... 1,534 104,785 Bayerische Motoren Werke "BMW" (Automotive and Related).............................. 2,947 90,409 Celanese* (Chemicals)...................... 156 2,892 Deutsche Bank (Banking).................... 1,305 110,508 Deutsche Telekom (Telecommunications)...................... 2,260 159,045 Epcos* (Telecommunications)................ 1,055 78,656 Mannesmann (Industrial Goods and Services)....................... 699 169,300 Siemens (Manufacturing).................... 1,145 146,506 Thyssen Krupp (Manufacturing).............. 4,430 137,244 Veba (Utilities)........................... 1,884 92,059 --------- 1,091,404 --------- Shares Value -------- -------- GREECE -- 1.0% Hellenic Telecommunications Organization (Telecommunications)...................... 2,700 $ 64,162 National Bank of Greece (GDRs)*+ (Banking)................................. 2,860 40,219 -------- 104,381 -------- IRELAND -- 0.6% Bank of Ireland (Banking).................. 8,000 63,674 -------- ITALY -- 3.5% Banca Popolare di Brescia (Banking)................................. 1,759 155,687 ENI (Resources)............................ 17,186 94,539 Unicredito Italiano (Financial Services)................................. 23,208 114,105 -------- 364,331 -------- JAPAN -- 23.2% ACOM (Financial Services).................. 1,200 117,465 Asahi Bank (Banking)....................... 19,000 117,055 Asahi Breweries (Consumer Products)................................. 5,000 54,665 Asahi Chemical Industry (Chemicals)............................... 15,000 77,010 Bridgestone (Automotive and Related).................................. 2,000 44,004 Fujitsu (Electronics)...................... 2,000 91,140 Itochu Techno-Science (Business Services)....................... 400 249,169 Marusan Securities (Financial Services)...................... 11,000 62,605 Mitsui Chemicals (Chemicals)............... 8,000 64,385 Namco (Entertainment and Leisure).................................. 2,400 155,369 Nippon Steel (Metals)...................... 34,000 79,464 Nippon Telegraph & Telephone "NTT" (Telecommunications)...................... 7 119,793 Nippon Television Network (Media)................................... 110 129,083 NTT Mobile Communication Network "NTT DoCoMo" (Telecommunications)...................... 4 153,726 - ------------- * Non-income producing security. + Rule 144A security. See Notes to Financial Statements. --P-50-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
Shares Value ------ --------- JAPAN (continued) Oracle (Business Services)........ 300 $139,351 Oriental Land (Entertainment and Leisure)..................... 1,600 137,375 Rinnai (Manufacturing)............ 5,000 92,900 Sony (Consumer Products).......... 600 177,782 THK (Industrial Goods and Services)........................ 2,000 80,774 Toshiba (Electronics)............. 16,000 122,042 Uny (Retail)...................... 5,000 48,846 Yamaha Motor (Automotive and Related)..................... 9,000 62,312 --------- 2,376,315 --------- NETHERLANDS -- 9.9% Akzo Nobel (Health and Household)....................... 2,264 113,593 Equant* (Business Services)....... 811 92,085 Fortis (Financial Services)....... 3,587 129,197 ING Groep (Insurance)............. 2,071 125,067 Koninklijk (Royal) Philips Electronics (Electronics)........ 878 119,419 Numico (Consumer Products)........ 2,146 80,084 Royal Dutch Petroleum (Resources)...................... 1,341 82,212 Unilever (Consumer Products)...... 1,219 67,351 VNU (Publishing).................. 2,562 134,688 Wolters Kluwer (Publishing)....... 2,080 70,412 --------- 1,014,108 --------- SOUTH KOREA -- 0.5% Samsung Electronics (Electronics)................... 213 49,897 --------- SPAIN -- 4.1% Banco Bilbao Vizcaya* (Banking)........................ 5,511 78,510 Banco Santander Central Hispano (Banking)................ 10,113 114,523 Iberdrola (Electronics)........... 5,573 77,260 Telefonica (Telecommunications)............ 6,221 155,437 --------- 425,730 --------- Shares Value ------ ----- Sweden -- 1.6% Electrolux (Series B) (Consumer Products).............. 3,962 $ 99,633 L.M. Ericsson Telefon (Series B) (Telecommunications)............. 1,000 64,278 -------- 163,911 -------- SWITZERLAND -- 8.3% ABB (Industrial Goods and Services)........................ 1,088 133,204 Clariant (Chemicals).............. 188 89,704 Credit Suisse Group (Financial Services)........................ 258 51,334 Novartis (Health and Household)....................... 86 126,402 Roche Holding (Health and Household)....................... 10 118,816 Swisscom (Telecommunications)............. 239 96,760 UBS (Banking)..................... 433 117,049 Zurich Allied (Insurance)......... 204 116,447 -------- 849,716 -------- UNITED KINGDOM -- 19.2% Allied Zurich (Insurance)......... 7,500 89,076 AstraZeneca (Drugs and Health Care)..................... 2,497 105,632 BP Amoco (Resources).............. 16,178 163,217 British American Tobacco (Tobacco)........................ 9,000 50,424 British Telecommunications (Telecommunications)............. 6,000 145,629 Bunzl (Manufacturing)............. 13,500 74,489 Cable & Wireless (Telecommunications)............. 4,000 67,766 FKI* (Industrial Goods and Services)........................ 24,000 94,757 Glaxo Wellcome (Drugs and Health Care)..................... 5,000 141,907 Granada Group (Entertainment and Leisure)..................... 12,500 126,212 Laporte (Chemicals)............... 6,000 52,426 Lloyds TSB Group (Banking)........ 8,000 100,063 Next (Consumer Products).......... 7,000 67,281
- ------------ * Non-income producing security. See Notes to Financial Statements. --P-51-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued)
Shares Value ------ ----------- United Kingdom (continued) Railtrack Group (Transportation)..... 5,000 $ 82,119 Reckitt Benckisen (Health and Household)........................ 6,000 56,699 Royal Bank of Scotland (Banking)......................... 6,800 120,374 Scottish & Newcastle (Consumer Products)............... 8,000 56,180 SmithKline Beecham (Health and Household).................... 6,700 85,321 United Utilities (Utilities)......... 8,500 88,231 WPP Group (Media).................... 12,500 197,206 ----------- 1,965,009 ----------- Value ----------- Total Investments -- 97.3% (Cost $7,452,649)................. $ 9,973,764 Other Assets Less Liabilities -- 2.7%.......... 274,725 ----------- Net Assets -- 100.0%................. $10,248,489 =========== - ---------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO Shares Value ------ ----------- COMMON STOCKS -- 87.6% CAPITAL GOODS -- 9.9% Corning.............................. 700 $ 90,256 General Electric..................... 1,050 162,488 Honeywell International.............. 550 31,728 Tyco International................... 2,000 77,750 ----------- 362,222 ----------- COMMUNICATIONS SERVICES -- 5.4% Lucent Technologies.................. 1,000 74,812 MCI WorldCom*........................ 2,325 123,298 ----------- 198,110 ----------- COMPUTER AND BUSINESS SERVICES -- 0.6% International Business Machines...... 200 21,600 ----------- CONSUMER CYCLICALS -- 10.0% Carnival............................. 1,100 52,594 Dayton Hudson........................ 600 44,062 Harley-Davidson...................... 450 28,828 Home Depot........................... 600 41,137 Interpublic Group of Companies......................... 300 17,306 Newell Rubbermaid.................... 1,300 37,700 Wal-Mart Stores...................... 2,100 145,163 ----------- 366,790 ----------- Shares Value ------ ----------- CONSUMER STAPLES -- 12.4% CBS*................................. 1,150 $ 73,528 Charter Communications............... 500 10,937 Coca-Cola............................ 2,350 136,888 Colgate-Palmolive.................... 600 39,000 Disney (Walt)........................ 1,000 29,250 McDonald's........................... 1,000 40,312 Procter & Gamble..................... 900 98,606 Time Warner.......................... 350 25,353 ----------- 453,874 ----------- ENERGY -- 4.0% Enron................................ 1,700 75,438 Schlumberger......................... 1,150 64,688 Transocean Sedco Forex............... 223 7,516 ----------- 147,642 ----------- ELECTRONIC TECHNOLOGY -- 10.4% Agilent Technologies*................ 300 23,194 Broadcom (Class A)*.................. 100 27,234 Cisco Systems*....................... 900 96,384 Dell Computer*....................... 1,000 50,969 Intel................................ 800 65,825 Micron Technology*................... 600 46,650 Sun Microsystems*.................... 200 15,481 Veritas Software*.................... 150 21,464 Xilinx*.............................. 800 36,375 ----------- 383,576 -----------
- ----------- * Non-income producing security. See Notes to Financial Statements. --P-52-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO (continued)
Shares Value ------ ---------- FINANCIAL SERVICES -- 3.4% American International Group.......................... 625 $ 67,578 Citigroup............................................. 550 30,559 Wells Fargo........................................... 650 26,284 ---------- 124,421 ---------- HEALTH CARE -- 4.5% Amgen................................................. 400 24,013 McKesson HBOC......................................... 1,100 24,819 Medtronic............................................. 1,200 43,725 Merck................................................. 500 33,531 Pfizer................................................ 1,250 40,547 ---------- 166,635 ---------- PHARMACEUTICAL -- 2.3% Johnson & Johnson..................................... 400 37,250 Lilly (Eli)........................................... 700 46,550 ---------- 83,800 ---------- TECHNOLOGY -- 21.0% America Online*....................................... 1,000 75,438 BMC Software*......................................... 600 47,962 Shares Value ------ ---------- TECHNOLOGY (continued) Computer Associates International..................... 1,100 $ 76,931 Compuware*............................................ 1,900 70,716 Microsoft*............................................ 1,800 210,094 Motorola.............................................. 650 95,713 Nokia (ADRs) (Finland)................................ 400 76,000 Oracle*............................................... 500 56,016 Siebel Systems*....................................... 200 16,825 Yahoo!*............................................... 100 43,272 ---------- 768,967 ---------- UTILITIES -- 3.7% AES*.................................................. 1,800 134,550 ---------- Total Investments -- 87.6% (Cost $2,592,479).................................. 3,212,187 Other Assets Less Liabilities -- 12.4%.......................... 456,187 ---------- Net Assets -- 100.0%.................................. $3,668,374 ==========
- -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO
Shares Value ------ ---------- COMMON STOCKS -- 97.8% AEROSPACE -- 6.7% Goodrich (B.F.)....................................... 7,000 $ 192,500 United Technologies................................... 3,000 195,000 ---------- 387,500 ---------- AUTOMOTIVE AND RELATED -- 7.0% Ford Motor............................................ 4,100 219,094 General Motors........................................ 2,500 181,719 ---------- 400,813 ---------- BANKING -- 9.4% Bank of America....................................... 3,205 160,851 Bank of New York...................................... 5,000 200,000 Summit Bancorp........................................ 6,000 183,750 ---------- 544,601 ---------- CHEMICALS -- 2.3% Dow Chemical.......................................... 1,000 133,625 ---------- Shares Value ------ ---------- DRUGS AND HEALTH CARE -- 9.4% American Home Products................................ 1,900 $ 74,931 Bristol-Myers Squibb.................................. 2,200 141,212 Humana*............................................... 20,000 163,750 United Healthcare..................................... 3,000 159,375 ---------- 539,268 ---------- ENERGY -- 4.1% El Paso Energy........................................ 1,900 73,744 Texaco................................................ 3,000 162,938 ---------- 236,682 ---------- FINANCE AND INSURANCE -- 19.8% Allstate.............................................. 7,000 168,000 AXA Financial......................................... 6,400 216,800 Citigroup............................................. 3,900 216,694
_________ * Non-income producing security. See Notes to Financial Statements. --P-53-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued)
Shares Value ------ ---------- FINANCE AND INSURANCE (continued) Fannie Mae...................................... 2,600 $ 162,337 St. Paul Companies.............................. 7,000 235,813 Washington Mutual............................... 5,425 141,050 ---------- 1,140,694 ---------- FOOD -- 6.6% ConAgra......................................... 1,200 27,075 Dole Food....................................... 8,500 138,125 Safeway*........................................ 6,000 213,375 ---------- 378,575 ---------- HOUSEHOLD PRODUCTS AND FURNISHINGS -- 8.8% Armstrong World Industries...................... 3,600 120,150 Dial............................................ 7,400 179,912 Kimberly-Clark.................................. 3,200 208,800 ---------- 508,862 ---------- MEDICAL PRODUCTS AND TECHNOLOGY -- 7.1% Baxter International............................ 3,000 188,438 Medtronic....................................... 6,000 218,625 ---------- 407,063 ---------- Shares Value ------ ---------- PACKAGING -- 3.1% Crown Cork & Seal............................... 8,000 $ 179,000 ---------- PAPER AND FOREST PRODUCTS -- 8.1% Champion International.......................... 3,700 229,169 Georgia-Pacific Group........................... 4,700 238,525 ---------- 467,694 ---------- RETAIL TRADE -- 2.6% Tandy........................................... 3,000 147,562 ---------- TOBACCO -- 2.8% Philip Morris................................... 6,850 158,834 ---------- Total Investments -- 97.8% (Cost $5,840,799).............................. 5,630,773 Other Assets Less Liabilities -- 2.2%....................... 127,107 ---------- Net Assets -- 100.0%............................ $5,757,880 ==========
- -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO
Shares Value ------ ---------- COMMON STOCKS -- 99.1% ADVERTISING -- 3.6% True North Communications....................... 3,500 $ 156,406 ---------- APPAREL AND TEXTILES -- 2.8% Cutter & Buck*.................................. 8,000 121,500 ---------- APPLIANCES -- 3.9% Windmere-Durable Holdings....................... 10,000 170,000 ---------- BANKING -- 4.7% Bay View Capital................................ 7,200 102,150 Commercial Federal.............................. 6,000 106,875 ---------- 209,025 ---------- Shares Value ------ ---------- BUILDING AND CONSTRUCTION -- 3.0% Dal-Tile International*......................... 13,000 $ 131,625 ---------- BUSINESS SERVICES -- 3.4% Complete Business Solutions*.................... 6,000 150,562 ---------- CAPITAL GOODS -- 1.3% Apogee Enterprises.............................. 11,000 55,344 ---------- CONSUMER GOODS AND SERVICES -- 4.8% Fresh Del Monte Produce......................... 11,000 99,000 Rent-Way*....................................... 6,000 112,125 ---------- 211,125 ----------
____________ * Non-income producing security. See Notes to Financial Statements. --P-54-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 1999 - -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (continued)
Shares Value ------- -------- DISTRIBUTORS -- 2.5% Cubic.......................................... 5,050 $110,469 --------- DRUGS AND HEALTHCARE -- 7.2% Apria Healthcare Group......................... 8,000 143,500 Omnicare....................................... 15,000 180,000 --------- 323,500 --------- FINANCE AND INSURANCE -- 2.6% Liberty Financial.............................. 5,000 114,688 --------- LEISURE AND RELATED -- 3.8% Harman International Industries................ 3,000 168,375 --------- MACHINERY -- 3.0% Stewart & Stevenson Services................... 11,000 130,281 --------- MANUFACTURING -- 3.3% Mueller Industries*............................ 4,000 145,000 --------- MEDICAL PRODUCTS AND TECHNOLOGY -- 4.1% Pharmacopeia................................... 8,000 180,750 --------- OIL AND GAS -- 8.6% Marine Drilling*............................... 7,000 157,063 Midcoast Energy Resources...................... 5,000 83,750 Valero Energy.................................. 7,000 139,125 --------- 379,938 --------- PACKAGING/ CONTAINERS -- 4.7% American National Can Group.................... 8,000 104,000 Applied Extrusion Technologies*................ 16,000 101,000 --------- 205,000 --------- Shares Value -------- --------- PLASTICS -- 2.2% Lamson & Sessions*............................ 19,500 $ 95,062 --------- PRINTING AND PUBLISHING -- 2.0% Cadmus Communications......................... 10,050 86,053 --------- RESTAURANTS -- 2.1% Jack In The Box................................ 4,450 92,059 --------- RETAIL TRADE -- 15.7% Abercrombie & Fitch (Class A)*................. 4,000 106,750 Fred's......................................... 10,500 167,016 Stage Stores*.................................. 25,000 57,813 Trans World Entertainment...................... 10,500 109,594 Urban Outfitters*.............................. 6,500 189,719 The Wet Seal (Class A)*........................ 5,000 61,406 --------- 692,298 --------- SPECIALTY METALS/ STEEL -- 4.5% AK Steel Holding............................... 6,000 113,250 Olympic Steel*................................. 18,000 85,781 --------- 199,031 --------- TRANSPORTATION -- 5.3% ABC-NACO*...................................... 9,000 74,812 Pittston BAX Group............................. 15,000 159,375 --------- 234,187 --------- Total Investments -- 99.1% (Cost $4,457,997)............................. 4,362,278 Other Assets Less Liabilities -- 0.9%...................... 41,090 --------- Net Assets-- 100.0% ........................... $4,403,368 =========
- ----------- * Non-income producing security. See Notes to Financial Statements. --P-55-- - ------------------------------------------------------------------------------- Statements of Assets and Liabilities - -------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman Cash Common Communications Seligman Seligman Seligman Capital Management Stock and Information Frontier Portfolio Bond Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------------- ----------- ----------- --------------- ----------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings ....................... $ 4,689,899 $26,329,995 $ -- $46,175,803 $203,557,361 $26,493,977 Short-term holdings...................... 500,000 2,100,000 16,653,704 500,000 9,800,000 -- ----------- ----------- ----------- ----------- ------------ ----------- Total Investments......................... 5,189,899 28,429,995 16,653,704 46,675,803 213,357,361 26,493,977 Cash....................................... 91,640 182,715 965,095 -- -- -- Interest and dividends receivable.......... 72,867 7,602 370 64,156 10,368 -- Receivable for Capital Stock sold.......... 100 190 -- 675,093 1,183,367 2,487 Receivable from associated companies...... -- -- 7,346 -- -- 2,816 Receivable for securities sold............ -- 219,211 -- -- 193,059 482,973 ----------- ----------- ----------- ----------- ------------- ----------- Total Assets............................... 5,354,506 28,839,713 17,626,515 47,415,052 214,744,155 26,982,253 ----------- ----------- ----------- ----------- ------------- ----------- LIABILITIES: Payable for Capital Stock redeemed....... 382,249 669,270 664 1,855 53,245 428,815 Payable to associated companies.......... 97 -- -- -- -- -- Payable for securities purchased.......... -- 555,114 -- -- -- 62,014 Payable to custodian...................... -- -- -- 63,564 535,369 745,381 Unrealized depreciation on foreign currencies and forward currency contracts....................... -- -- -- -- -- -- Accrued expenses and other................ 25,012 29,536 14,470 46,912 194,292 40,209 ----------- ----------- ----------- ----------- ------------- ----------- Total Liabilities......................... 407,358 1,253,920 15,134 112,331 782,906 1,276,419 ----------- ----------- ----------- ----------- ------------- ----------- Net Assets ............................... $ 4,947,148 $27,585,793 $17,611,381 $47,302,721 $ 213,961,249 $25,705,834 =========== =========== =========== =========== ============= =========== COMPOSITION OF NET ASSETS: Capital Stock, at par..................... $ 534 $ 1,154 $ 17,609 $ 2,848 $ 8,014 $ 1,418 Additional paid-in-capital............... 5,376,348 17,033,061 17,591,399 34,577,756 123,543,029 20,738,333 Undistributed net investment income (loss).......................... (6,147) (6,209) -- 3,809 (3,542) (3,266) Undistributed/accumulated net realized gain (loss)..................... (228,598) 1,836,587 2,373 1,415,262 18,094,802 (429,784) Net unrealized appreciation (depreciation) of investments............ (194,989) 8,721,200 -- 11,303,046 72,318,946 5,399,133 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts....................... -- -- -- -- -- -- ----------- ----------- ----------- ----------- ------------- ----------- Net Assets ............................... $ 4,947,148 $27,585,793 $17,611,381 $47,302,721 $ 213,961,249 $25,705,834 =========== =========== =========== =========== ============= =========== Shares of Capital Stock Outstanding ($.001 par value)............ 533,565 1,154,036 17,609,008 2,848,031 8,013,532 1,417,839 =========== =========== =========== =========== ============= =========== Net Asset Value per Share................. $ 9.27 $ 23.90 $ 1.00 $ 16.61 $ 26.70 $ 18.13 =========== =========== =========== =========== ============= ===========
P-56 - ------------------------------------------------------------------------------ December 31, 1999 - ------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman Global Smaller Global High-Yield Seligman Global Growth Companies Technology Bond Income Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------------- ----------- ----------- --------------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings ....................... $11,683,115 $19,225,594 $21,603,734 $24,783,655 $ 8,646,129 Short-term holdings....................... -- -- -- 1,000,000 -- ---------- ----------- ----------- ----------- --------------- Total Investments ........................ 11,683,115 19,225,594 21,603,734 25,783,655 8,646,129 Cash...................................... 62,707 275,570 285,405 590,403 -- Interest and dividends receivable......... 5,980 17,526 3,521 583,341 49,743 Receivable for Capital Stock sold......... 138,720 26,705 236,704 100 200 Receivable from associated companies................................ 2,063 -- -- -- -- Receivable for securities sold............ 97,927 109,516 -- -- -- ---------- ----------- ----------- ----------- --------------- Total Assets ............................. 11,990,512 19,654,911 22,129,364 26,957,499 8,696,072 ---------- ----------- ----------- ----------- --------------- LIABILITIES: Payable for Capital Stock redeemed................................. 1,021 1,541 1,795 29,973 348 Payable to associated companies........... -- 3,345 1,759 210 4,997 Payable for securities purchased.......... 71,910 17,866 -- -- -- Payable to custodian...................... -- -- -- -- 73,090 Unrealized depreciation on foreign currencies and forward currency contracts....................... 6,151 9,740 1,578 -- -- Accrued expenses and other................ 22,677 53,773 36,885 35,308 23,123 ---------- ----------- ----------- ----------- --------------- Total Liabilities......................... 101,759 86,265 42,017 65,491 101,558 ---------- ----------- ----------- ----------- --------------- Net Assets ............................... $11,888,753 $19,568,646 $22,087,347 $26,892,008 $ 8,594,514 ========== =========== =========== =========== =============== COMPOSITION OF NET ASSETS: Capital Stock, at par..................... $ 653 $ 1,120 $ 806 $ 2,803 $ 867 Additional paid-in-capital................ 7,231,177 13,791,658 11,896,605 31,995,085 8,293,951 Undistributed net investment income (loss)........................... (2,465) (3,428) (2,460) (3,013) 3,035 Undistributed/accumulated net realized gain (loss)..................... 129,308 502,186 1,072,509 (2,153,969) 13,392 Net unrealized appreciation (depreciation) of investments............ 4,633,911 5,233,063 9,067,367 (2,948,898) 283,269 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts....................... (103,831) 44,047 52,520 -- -- ---------- ----------- ----------- ----------- --------------- Net Assets ............................... $11,888,753 $19,568,646 $22,087,347 $26,892,008 $ 8,594,514 ========== =========== =========== =========== =============== Shares of Capital Stock Outstanding ($.001 par value)............ 652,622 1,119,504 805,633 2,802,807 867,451 ========== =========== =========== =========== =============== Net Asset Value per Share................. $18.22 $17.48 $27.42 $9.59 $9.91 ========== =========== =========== =========== ===============
Seligman Seligman Seligman Seligman International Large-Cap Large-Cap Small-Cap Growth Growth Value Value Portofolio Portfolio Portfolio Portfolio ---------- -------------- ----------- ------------ ASSETS: Investments, at value (see portfolios of investments): Long-term holdings ....................... $ 9,973,764 $ 3,212,187 $ 5,630,773 $ 4,362,278 Short-term holdings....................... -- -- -- -- ---------- ----------- ----------- ----------- Total Investments......................... 9,973,764 3,212,187 5,630,773 4,362,278 Cash...................................... 276,028 353,327 59,237 19,679 Interest and dividends receivable......... 21,534 1,225 13,393 945 Receivable for Capital Stock sold......... 7,600 4,776 3,428 33,191 Receivable from associated companies................................ 809 7,882 -- -- Receivable for securities sold............ -- 109,233 94,028 -- ---------- ----------- ----------- ----------- Total Assets ............................. 10,279,735 3,688,630 5,800,859 4,416,093 ---------- ----------- ----------- ----------- LIABILITIES: Payable for Capital Stock redeemed................................. 409 2,084 246 169 Payable to associated companies........... -- -- 85 662 Payable for securities purchased.......... -- 9,135 29,824 -- Payable to custodian...................... -- -- -- -- Unrealized depreciation on foreign currencies and forward currency contracts....................... 6,920 -- -- -- Accrued expenses and other................ 23,917 9,037 12,824 11,894 Total Liabilities......................... 31,246 20,256 42,979 12,725 ---------- ----------- ----------- ----------- Net Assets ............................... $10,248,489 $ 3,668,374 $ 5,757,880 $ 4,403,368 ========== =========== =========== =========== COMPOSITION OF NET ASSETS: Capital Stock, at par..................... $ 616 $ 302 $ 621 $ 545 Additional paid-in-capital................ 7,396,589 3,053,423 5,948,246 4,325,975 Undistributed net investment income (loss)........................... 63,641 (304) (968) (1,003) Undistributed/accumulated net realized gain (loss)..................... 273,996 (4,755) 20,007 173,570 Net unrealized appreciation (depreciation) of investments............ 2,631,816 619,708 (210,026) (95,719) Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts....................... (118,169) -- -- -- ---------- ----------- ----------- ----------- Net Assets ............................... $10,248,489 $ 3,668,374 $ 5,757,880 $ 4,403,368 ========== =========== =========== =========== Shares of Capital Stock Outstanding ($.001 par value)............ 616,444 301,726 620,631 545,263 ========== =========== =========== =========== Net Asset Value per Share................. $16.63 $12.16 $9.28 $8.08 ========== =========== =========== ===========
[FN] - ------------------- See Notes to Financial Statements. --P-57-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Statements of Operations - --------------------------------------------------------------------------------
Seligman Seligman Seligman Communications Seligman Seligman Cash Common and Seligman Bond Capital Management Stock Information Frontier Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ----------- ----------- ----------- -------------- ----------- INVESTMENT INCOME: Interest...................................... $ 387,410 $ 70,360 $ 737,469 $ 170,589 $ 290,742 $ 38,673 Dividends**................................... -- 65,824 -- 866,227 209,037 34,633 ----------- ----------- ----------- ----------- -------------- ----------- Total Investment Income....................... 387,410 136,184 737,469 1,036,816 499,779 73,306 ----------- ----------- ----------- ----------- -------------- ----------- EXPENSES: Management fee................................ 25,174 87,388 59,121 227,424 1,069,705 203,535 Auditing fee.................................. 6,312 11,818 19,227 23,961 51,332 13,790 Directors' fees and expenses.................. 4,987 5,469 4,570 5,984 6,385 5,223 Custody and related services.................. 2,207 12,269 6,416 17,894 60,475 26,087 Registration.................................. 1,756 3,065 2,093 7,017 13,616 2,698 Shareholder reports and communications............................... 1,576 3,856 1,484 3,879 13,328 3,676 Legal fee..................................... 1,195 2,147 1,718 4,306 9,559 2,472 Miscellaneous................................. 1,715 2,849 1,550 5,511 8,603 3,147 ----------- ----------- ----------- ----------- -------------- ----------- Total Expenses Before Waiver/ Reimbursement................................ 44,922 128,861 96,179 295,976 1,233,003 260,628 Waiver/reimbursement of expenses..................................... (7,167) -- (96,179) -- -- (2,816) ----------- ----------- ----------- ----------- -------------- ----------- Total Expenses After Waiver/ Reimbursement................................ 37,755 128,861 -- 295,976 1,233,003 257,812 ----------- ----------- ----------- ----------- -------------- ----------- Net Investment Income (Loss).................. 349,655 7,323 737,469 740,840 (733,224) (184,506) ----------- ----------- ----------- ----------- -------------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments....... (228,598) 7,533,936 1,233 10,832,866 50,179,223 693,862 Net realized loss from foreign currency transactions........................ -- -- -- -- -- -- Net change in unrealized appreciation/depreciation of investments.... (454,121) 2,159,898 -- (4,409,218) 49,869,648 1,462,795 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............... -- -- -- -- -- -- ----------- ----------- ----------- ----------- -------------- ----------- Net Gain (Loss) on Investments and Foreign Currency Transactions............ (682,719) 9,693,834 1,233 6,423,648 100,048,871 2,156,657 ----------- ----------- ----------- ----------- -------------- ----------- Increase (Decrease) in Net Assets from Operations....................... $ (333,064) $ 9,701,157 $ 738,702 $ 7,164,488 $ 99,315,647 $ 1,972,151 =========== =========== =========== =========== ============== ===========
_________________ * For the period April 30, 1999, commencement of operations, to December 31, 1999. **Net of foreign tax withheld as follows: $ -- $ -- $ -- $ 9,328 $ 3,369 $ 724
See Notes to Financial Statements.
- ------------------------------------------------------------------------------------------------------------------------------------ For the Year Ended December 31, 1999 - ------------------------------------------------------------------------------------------------------------------------------------ Seligman Seligman Seligman Global High-Yield Seligman Global Seligman Technology Bond Global Growth Income Smaller Companies Portfolio Portfolio Portfolio Portfolio Portfolio ---------- ---------- ------------- ----------- ----------------- INVESTMENT INCOME: Interest.................................... $ 17,767 $ 3,240 $ 50,944 $ 322,411 $ 123,859 Dividends**................................. 78,929 165,082 44,055 2,986,551 365,913 ---------- ---------- ----------- ----------- ------------ Total Investment Income..................... 96,696 168,322 94,999 3,308,962 489,772 ---------- ---------- ----------- ----------- ------------ EXPENSES: Management fee.............................. 94,873 179,034 107,062 150,001 46,448 Auditing fee................................ 7,736 10,578 7,966 14,261 8,543 Directors' fees and expenses................ 6,365 6,602 6,356 5,193 5,359 Custody and related services................ 21,239 80,704 21,941 47,881 13,573 Registration................................ 1,924 2,200 1,861 3,791 2,310 Shareholder reports and communications............................. 1,951 2,796 2,152 3,760 3,743 Legal fee................................... 1,391 1,907 1,460 2,651 1,523 Miscellaneous............................... 1,927 2,503 1,856 1,975 2,265 ---------- ---------- ----------- ----------- ------------ Total Expenses Before Waiver/ Reimbursement.............................. 137,406 286,324 150,654 229,513 83,764 Waiver/reimbursement of expenses................................... (4,586) (35,680) (775) (19,578) (14,092) ---------- ---------- ----------- ----------- ------------ Total Expenses After Waiver/ Reimbursement.............................. 132,820 250,644 149,879 209,935 69,672 ---------- ---------- ----------- ----------- ------------ Net Investment Income (Loss)................ (36,124) (82,322) (54,880) 3,099,027 420,100 ---------- ---------- ----------- ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................................ 1,718,575 961,203 2,982,910 (2,143,090) 779,879 Net realized loss from foreign currency transactions...................... (54,259) (191,782) (34,676) -- -- Net change in unrealized appreciation/depreciation of investments............................. 2,817,010 3,647,161 7,971,407 (1,145,943) (931,859) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............. (222,964) (36,178) 10,176 -- -- ---------- ---------- ----------- ----------- ------------ Net Gain (Loss) on Investments and Foreign Currency Transactions............................... 4,258,362 4,380,404 10,929,817 (3,289,033) (151,980) ---------- ---------- ----------- ----------- ------------ Increase (Decrease) in Net Assets from Operations..................... $4,222,238 $4,298,082 $10,874,937 $ (190,006) $ 268,120 ========== ========== =========== =========== ============
__________________ * For the period April 30, 1999, commencement of operations, to December 31, 1999. **Net of foreign tax withheld as follows: $5,468 $ 16,994 $ 3,725 $ -- $ 952
See Notes to Financial Statements.
Seligman Seligman Seligman Large-Cap Small-Cap International Large-Cap Value Value Growth Growth Portfolio Portfolio Portfolio Portfolio* ---------- ---------- ------------- ----------- INVESTMENT INCOME: Interest.......................................... $ 5,563 $ 1,265 $ 1,531 $ -- Dividends**....................................... 158,322 8,754 105,937 29,997 ---------- ---------- ----------- ----------- Total Investment Income........................... 163,885 10,019 107,468 29,997 ---------- ---------- ----------- ----------- EXPENSES: Management fee.................................... 95,391 10,543 43,362 41,087 Auditing fee...................................... 7,797 4,894 6,441 5,968 Directors' fees and expenses...................... 6,694 2,464 4,594 4,628 Custody and related services...................... 41,255 1,527 1,846 1,793 Registration...................................... 1,612 157 331 152 Shareholder reports and communications................................... 2,059 1,218 1,666 1,538 Legal fee......................................... 1,394 944 1,141 1,061 Miscellaneous..................................... 1,975 1,223 1,635 1,612 ---------- ---------- ----------- ----------- Total Expenses Before Waiver/ Reimbursement.................................... 158,177 22,970 61,016 57,839 Waiver/reimbursement of expenses......................................... (25,594) (12,427) (17,654) (16,752) ---------- ---------- ----------- ----------- Total Expenses After Waiver/ Reimbursement.................................... 132,583 10,543 43,362 41,087 ---------- ---------- ----------- ----------- Net Investment Income (Loss)...................... 31,302 (524) 64,106 (11,090) ---------- ---------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments...................................... 1,862,678 (4,755) 54,497 969,509 Net realized loss from foreign currency transactions............................ (148,777) -- -- -- Net change in unrealized appreciation/depreciation of investments................................... 789,435 619,708 (318,566) 68,618 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts................... (285,019) -- -- -- ---------- ---------- ----------- ----------- Net Gain (Loss) on Investments and Foreign Currency Transactions..................................... 2,218,317 614,953 (264,069) 1,038,127 ---------- ---------- ----------- ----------- Increase (Decrease) in Net Assets from Operations........................... $2,249,619 $ 614,429 $ (199,963) $ 1,027,037 ========== ========== =========== ===========
__________________ * For the period April 30, 1999, commencement of operations, to December 31, 1999. **Net of foreign tax withheld as follows: $ 16,384 $ -- $ -- $ --
See Notes to Financial Statements. --P-59-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Statements of Changes in Net Assets - --------------------------------------------------------------------------------
Seligman Seligman Seligman Bond Portfolio Capital Portfolio Cash Management Portfolio -------------------------- --------------------------- --------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, -------------------------- --------------------------- --------------------------- 1999 1998 1999 1998 1999 1998 ----------- ------------ ------------ ------------ ------------ ------------ OPERATIONS: Net investment income (loss)................ $ 349,655 $ 383,251 $ 7,323 $ 40,438 $ 737,469 $ 540,798 Net realized gain (loss) on investments..... (228,598) 123,784 7,533,936 1,655,402 1,233 1,538 Net realized gain (loss) from foreign currency transactions...................... -- -- -- -- -- -- Net change in unrealized appreciation/depreciation of investments... (454,121) 37,175 2,159,898 2,577,044 -- -- Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts.. -- -- -- -- -- -- ----------- ------------ ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets From Operations........................... (333,064) 544,210 9,701,157 4,272,884 738,702 542,336 ----------- ------------ ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income....................... (353,096) (383,617) (8,682) (42,246) (737,469) (540,798) Realized gain on investments................ -- (72,294) (6,178,894) (1,310,739) -- -- ----------- ------------ ------------ ------------ ------------ ------------ Decrease in Net Assets From Distributions........................ (353,096) (455,911) (6,187,576) (1,352,985) (737,469) (540,798) ----------- ------------ ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares............ 3,696,281 2,476,931 8,798,590 11,707,365 45,713,281 32,521,913 Investment of dividends..................... 353,096 383,617 8,682 42,246 737,469 540,798 Shares issued in payment of gain distributions............................. -- 72,294 6,178,894 1,310,739 -- -- ----------- ------------ ------------ ------------ ------------ ------------ Total....................................... 4,049,377 2,932,842 14,986,166 13,060,350 46,450,750 33,062,711 ----------- ------------ ------------ ------------ ------------ ------------ Cost of shares redeemed..................... (5,736,425) (2,932,822) (15,054,648) (12,239,347) (39,360,497) (31,179,640) ----------- ------------ ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets From Capital Share Transactions........... (1,687,048) 20 (68,482) 821,003 7,090,253 1,883,071 ----------- ------------ ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets........... (2,373,208) 88,319 3,445,099 3,740,902 7,091,486 1,884,609 Net Assets: Beginning of year........................... 7,320,356 7,232,037 24,140,694 20,399,792 10,519,895 8,635,286 ----------- ------------ ------------ ------------ ------------ ------------ End of Year................................. $ 4,947,148 $ 7,320,356 $ 27,585,793 $ 24,140,694 $ 17,611,381 $ 10,519,895 =========== ============ ============ ============ ============= ============
_______________ See Notes to Financial Statements. --P-60--
Common Stock Communications and Portfolio Information Portfolio --------------------------- ---------------------------- Year Ended December 31, Year Ended December 31, --------------------------- ---------------------------- 1999 1998 1999 1998 ------------ ------------ ------------ ------------- OPERATIONS: Net investment income (loss).................... $ 740,840 $ 900,842 $ (733,224) $ (559,960) Net realized gain (loss) on investments......... 10,832,866 3,819,226 50,179,223 5,762,699 Net realized gain (loss) from foreign currency transactions.......................... -- -- -- -- Net change in unrealized appreciation/ depreciation of investments.................... (4,409,218) 7,459,005 49,869,648 28,175,377 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts...... -- -- -- -- ------------ ------------ ------------ ------------- Increase (Decrease) in Net Assets From Operations............................... 7,164,488 12,179,073 99,315,647 33,378,116 ------------ ------------ ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income........................... (731,802) (940,040) -- -- Realized gain on investments.................... (9,413,530) (3,824,886) (31,388,512) (4,823,503) ------------ ------------ ------------ ------------- Decrease in Net Assets From Distributions............................ (10,145,332) (4,764,926) (31,388,512) (4,823,503) ------------ ------------ ------------ ------------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares................ 18,687,094 14,190,439 58,041,904 199,351,030 Investment of dividends......................... 731,802 940,040 -- -- Shares issued in payment of gain distributions.. 9,413,530 3,824,886 31,388,512 4,823,503 ------------ ------------ ------------ ------------- Total........................................... 28,832,426 18,955,365 89,430,416 204,174,533 ------------ ------------ ------------ ------------- Cost of shares redeemed......................... (41,136,919) (14,518,617) (65,675,233) (198,083,052) ------------ ------------ ------------ ------------- Increase (Decrease) in Net Assets From Capital Share Transactions............... (12,304,493) 4,436,748 23,755,183 6,091,481 ------------ ------------ ------------ ------------- Increase (Decrease) in Net Assets............... (15,285,337) 11,850,895 91,682,318 34,646,094 Net Assets: Beginning of year............................... 62,588,058 50,737,163 122,278,931 87,632,837 ------------ ------------ ------------ ------------- End of Year..................................... $ 47,302,721 $ 62,588,058 $213,961,249 $ 122,278,931 ============ ============ ============ =============
Seligman Global Growth Frontier Portfolio Portfolio --------------------------- ---------------------------- Year Ended December 31, Year Ended December 31, --------------------------- ---------------------------- 1999 1998 1999 1998 ------------ ------------- ------------ ------------- OPERATIONS: Net investment income (loss)................... $ (184,506) $ (218,513) $ (36,124) $ (4,515) Net realized gain (loss) on investments........ 693,862 (1,118,028) 1,718,575 (276,305) Net realized gain (loss) from foreign currency transactions......................... -- -- (54,259) (36,450) Net change in unrealized appreciation/ depreciation of investments................... 1,462,795 896,484 2,817,010 1,405,297 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts..... -- -- (222,964) 239,832 ------------ ------------- ------------ ------------- Increase (Decrease) in Net Assets From Operations.............................. 1,972,151 (440,057) 4,222,238 1,327,859 ------------ ------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income.......................... -- -- -- -- Realized gain on investments................... -- -- (1,134,348) (50,935) ------------ ------------- ------------ ------------- Decrease in Net Assets From Distributions........................... -- -- (1,134,348) (50,935) ------------ ------------- ------------ ------------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares............... 23,520,563 227,067,285 3,291,118 4,808,045 Investment of dividends........................ -- -- -- -- Shares issued in payment of gain distributions............................ -- -- 1,134,348 50,935 ------------ ------------- ------------ ------------- Total.......................................... 23,520,563 227,067,285 4,425,466 4,858,980 ------------ ------------- ------------ ------------- Cost of shares redeemed........................ (38,934,551) (230,452,830) (4,267,898) (2,941,841) ------------ ------------- ------------ ------------- Increase (Decrease) in Net Assets From Capital Share Transactions.............. (15,413,988) (3,385,545) 157,568 1,917,139 ------------ ------------- ------------ ------------- Increase (Decrease) in Net Assets.............. (13,441,837) (3,825,602) 3,245,458 3,194,063 Net Assets: Beginning of year.............................. 39,147,671 42,973,273 8,643,295 5,449,232 ------------ ------------- ------------ ------------- End of Year.................................... $ 25,705,834 $ 39,147,671 $ 11,888,753 $ 8,643,295 ============ ============= ============ =============
--P-61-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Statements of Changes in Net Assets (continued) - --------------------------------------------------------------------------------
Seligman Seligman Seligman Global Smaller Global Technology High-Yield Bond Companies Portfolio Portfolio Portfolio ------------------- --------- --------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ---------------------- ---------------------- ---------------------- 1999 1998 1999 1998 1999 1998 ----------- ------------ ----------- ------------ ----------- -------------- OPERATIONS: Net investment income (loss)......... $ (82,322) $ (13,328) $ (54,880) $ (21,045) $ 3,099,027 $ 2,731,048 Net realized gain on investments..... 961,203 380,866 2,982,910 327,368 (2,143,090) 10,307 Net realized gain (loss) from foreign currency transactions............... (191,782) (343,427) (34,676) 1,871 -- -- Net change in unrealized appreciation/ depreciation of investments......... 3,647,161 442,586 7,971,407 1,121,131 (1,145,943) (2,638,907) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts................. (36,178) 782,308 10,176 73,954 -- -- ----------- ----------- ----------- ------------ ------------ ----------- Increase (Decrease) in Net Assets From Operations.................... 4,298,082 1,249,005 10,874,937 1,503,279 (190,006) 102,448 ----------- ----------- ----------- ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income................ -- -- -- (857) (3,116,594) (2,720,490) Realized gain on investments......... -- (307,092) (1,874,628) (262,609) -- (17,156) ----------- ----------- ----------- ------------ ------------ ----------- Decrease in Net Assets From Distributions................. -- (307,092) (1,874,628) (263,466) (3,116,594) (2,737,646) ----------- ----------- ----------- ------------ ------------ ----------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares..... 2,425,180 3,255,307 22,424,095 4,355,443 15,071,625 17,539,019 Investment of dividends.............. -- -- -- 857 3,116,594 2,720,490 Shares issued in payment of gain distributions.................. -- 307,092 1,874,628 262,609 -- 17,156 ----------- ----------- ----------- ------------ ------------ ----------- Total................................ 2,425,180 3,562,399 24,298,723 4,618,909 18,188,219 20,276,665 ----------- ----------- ----------- ------------ ------------ ----------- Cost of shares repurchased......................... (7,968,678) (4,194,840) (17,341,656) (3,414,979) (20,242,419) (8,656,439) ----------- ----------- ----------- ------------ ------------ ----------- Increase (Decrease) in Net Assets From Capital Share Transactions...................... (5,543,498) (632,441) 6,957,067 1,203,930 (2,054,200) 11,620,226 ----------- ----------- ----------- ------------ ------------ ----------- Increase (Decrease) in Net Assets.............................. (1,245,416) 309,472 15,957,376 2,443,743 (5,360,800) 8,985,028 Net Assets: Beginning of period.............................. 20,814,062 20,504,590 6,129,971 3,686,228 32,252,808 23,267,780 ----------- ----------- ----------- ------------ ------------ ----------- End of Period............................. $19,568,646 $20,814,062 $22,087,347 $ 6,129,971 $ 26,892,008 $32,252,808 =========== =========== =========== =========== ============ ===========
________________ * Commencement of operations. See Notes to Financial Statements. --P-62--
Seligman International Growth Portfolio Seligman Income Portfolio --------------------------------------- ------------------------------- Year Ended December 31, Year Ended December 31, --------------------------------------- ------------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ------------ OPERATIONS: Net investment income (loss).................. $ 420,100 $ 565,319 $ 31,302 $ 51,629 Net realized gain on investments.............. 779,879 124,492 1,862,678 236,433 Net realized gain (loss) from foreign currency transactions........................ -- -- (148,777) (62,257) Net change in unrealized appreciation/ depreciation of investments......... (931,859) 381,475 789,435 749,881 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts.................................... -- -- (285,019) 412,820 ----------- ----------- ------------ ----------- Increase (Decrease) in Net Assets From Operations............................. 268,120 1,071,286 2,249,619 1,388,506 ------------ ----------- ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income......................... (413,971) (579,531 -- (92,510) Realized gain on investments.................. (691,269) (200,703 (1,396,893) (102,080) ------------ ----------- ------------ ----------- Decrease in Net Assets From Distributions.......................... (1,105,240) (780,234 (1,396,893) (194,590) ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares.............. 1,887,360 2,781,692 1,464,332 1,772,992 Investment of dividends....................... 413,971 579,531 -- 92,510 Shares issued in payment of gain distributions........................... 691,269 200,703 1,396,893 102,080 ----------- ----------- ----------- ----------- Total......................................... 2,992,600 3,561,926 2,861,225 1,967,582 ----------- ----------- ----------- ----------- Cost of shares repurchased.................... (8,143,191) (3,106,033 (3,358,291) (2,451,134) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Capital Share Transactions............. (5,150,591) 455,893 (497,066) (483,552) ----------- ----------- ----------- Increase (Decrease) in Net Assets............. (5,987,711) 746,945 355,660 710,364 Net Assets: Beginning of period........................... 14,582,225 13,835,280 9,892,829 9,182,465 ----------- ----------- ----------- ----------- End of Period.................................. $ 8,594,514 $14,582,225 $10,248,489 $ 9,892,829 =========== =========== =========== ===========
Seligman Large-Cap Seligman Seligman Growth Large-Cap Small-Cap Portfolio Value Portfolio Value Portfolio ----------- --------------- --------------- 5/1/99* Year 5/1/98* Year 5/1/98* to Ended to Ended to 12/31/99 12/31/99 12/31/98 12/31/99 12/31/98 ----------- ----------- ------------ ----------- ------------ OPERATIONS: Net investment income (loss).................... $ (524) $ 64,106 $ 12,694 $ (11,090) $ (2,716) Net realized gain on investments................ (4,755) 54,497 67,875 969,509 271,788 Net realized gain (loss) from foreign currency transactions.......................... -- -- -- -- -- Net change in unrealized appreciation/ depreciation of investments......... 619,708 (318,566) 108,540 68,618 (164,337) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts...................................... -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Operations............................... 614,429 (199,963) 189,109 1,027,037 104,735 ------------ ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income........................... -- (67,324) (13,586) -- -- Realized gain on investments.................... -- -- (101,893) (785,429) (270,486) ------------ ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions............................ -- (67,324) (115,479) (785,429) (270,486) ------------ ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares................ 2,683,558 4,766,032 4,577,607 3,118,001 3,140,726 Investment of dividends......................... -- 67,324 13,586 -- -- Shares issued in payment of gain distributions............................. -- -- 101,893 785,429 270,486 ------------ ----------- ----------- ----------- ----------- Total........................................... 2,683,558 4,833,356 4,693,086 3,903,430 3,411,212 ----------- ----------- ----------- ----------- ----------- Cost of shares repurchased...................... (172,873) (2,654,012) (1,068,342) (2,210,601) (923,979) ------------ ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Capital Share Transactions............... 2,510,685 2,179,344 3,624,744 1,692,829 2,487,233 ------------ ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets............... 3,125,114 1,912,057 3,698,374 1,934,437 2,321,482 Net Assets: Beginning of period............................. 543,260 3,845,823 147,449 2,468,931 147,449 ------------ ----------- ----------- ----------- ----------- End of Period................................... $ 3,668,374 $ 5,757,880 $ 3,845,823 $ 4,403,368 $ 2,468,931 ============ =========== =========== =========== ===========
--P-63-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Notes to Financial Statements - ------------------------------------------------------------------------------- 1. Organization -- Seligman Portfolios, Inc. (the "Fund") is an open-end diversified management investment company consisting of 15 separate portfolios (the Portfolios): Seligman Bond Portfolio ("Bond Portfolio"), Seligman Capital Portfolio ("Capital Portfolio"), Seligman Cash Management Portfolio ("Cash Management Portfolio"), Seligman Common Stock Portfolio ("Common Stock Portfolio"), Seligman Communications and Information Portfolio ("Communications and Information Portfolio"), Seligman Frontier Portfolio ("Frontier Portfolio"), Seligman Global Growth Portfolio, formerly Seligman Henderson Global Growth Opportunities Portfolio ("Global Growth Portfolio"), Seligman Global Smaller Companies Portfolio, formerly Seligman Henderson Global Smaller Companies Portfolio ("Global Smaller Companies Portfolio"),Seligman Global Technology Portfolio, formerly Seligman Henderson Global Technology Portfolio ("Global Technology Portfolio"), Seligman High-Yield Bond Portfolio ("High-Yield Bond Portfolio"), Seligman Income Portfolio ("Income Portfolio"), Seligman International Growth Portfolio, formerly Seligman Henderson International Portfolio ("International Growth Portfolio"), Seligman Large-Cap Growth Portfolio ("Large-Cap Growth Portfolio"), Seligman Large-Cap Value Portfolio ("Large-Cap Value Portfolio"), and Seligman Small-Cap Value Portfolio ("Small-Cap Value Portfolio"), each designed to meet different investment goals. Shares of the Fund are provided as the investment medium for Canada Life of America Variable Annuity Account 2 ("CLVA-2"), which has been offered by Canada Life Insurance Company of America ("CLICA"), Canada Life of New York Variable Annuity Account 2 ("CLNYVA-2"), which has been offered by Canada Life Insurance Company of New York ("CLNY"), and Canada Life of America Annuity Account 3 ("CLVA-3"), which has been offered by CLICA. CLVA-2 and CLNYVA-2 are registered as unit investment trusts under the Investment Company Act of 1940, as amended (the "1940 Act") and fund variable annuity contracts (the "CLVA-2 Contracts") issued by CLICA and CLNY. CLVA-3 is not registered or regulated as a unit investment trust under the 1940 Act in reliance on the exemption provided in Section 3(c)(11) of the 1940 Act, and funds variable annuity contracts (the "CLVA-3 Contracts") issued by CLICA. Effective January 1, 2000, CLICA and CLNY, as the case may be, stopped offering new CLVA-2, CLNYVA-2 and CLVA-3 Contracts. However, existing Contract holders will be able to continue to acquire shares of the Fund. Additionally, on and after January 1, 2000, shares of the Fund will continue to be provided as the investment medium for other variable annuity separate accounts established and offered by CLICA or its affiliates ("Canada Life Separate Accounts") and will be offered as the investment medium for variable annuity separate accounts established and offered by other insurance companies not affiliated with CLICA. Prior to June 30, 1999, shares of Bond, Capital, Cash Management, Common Stock, and Income Portfolios were provided as the investment medium for Seligman Mutual Benefit Plan (the "Mutual Benefit Plan"), a separate account of MBL Life Assurance Corporation ("MBL Life"). 2. Significant Accounting Policies -- The financial statements have been prepared in conformity with generally accepted accounting principles which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund: a. Security Valuation --Investments in US Government and Government Agency securities, bonds, convertible securities, and stocks are valued at the most current market values or, in their absence, at fair market values determined in accordance with procedures approved by the Board of Directors. Securities traded on an exchange are valued at the last sales price or, in its absence and in the case of over-the-counter securities, at the mean of closing bid and asked prices. Short-term holdings maturing in 60 days or less are valued at amortized cost. Investments held by Cash Management Portfolio are generally valued using the amortized cost method which approximates fair value. Investments of certain other funds in the Seligman Group of Investment Companies purchased to offset the Cash Management Portfolio's liability for deferred directors' fees are valued at current market values. b. Foreign Securities -- The Portfolios may invest up to 10% of their total assets in foreign securities (except Global Growth Portfolio, Global Smaller Companies Portfolio, Global Technology Portfolio, and International Growth Portfolio, (together, the "Seligman International Portfolios"), which may invest up to 100% of their total assets in foreign securities). Investments in foreign securities will usually be denominated in foreign currencies, and the Portfolios may temporarily hold funds in foreign currencies. The Portfolios may also invest in US dollar-denominated American Depositary Receipts ("ADRs"), American Depositary Shares ("ADSs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs"), and Global Depositary Shares ("GDSs"). ADRs and ADSs are issued by domestic banks or trust companies and evidence ownership of securities issued by foreign corporations. ADRs and ADSs are traded on United States exchanges or over-the-counter and are not included in the 10% limitation. EDRs, GDRs, and GDSs are receipts similar to ADRs and ADSs and are typically issued by foreign banks or trust companies and traded in Europe. The books and records of the Portfolios are maintained in US dollars. Foreign currency amounts are translated into US dollars on the following basis: (i) market value of investment securities, other assets, and liabilities, at the daily rate of exchange as reported by a pricing service; (ii) purchases and sales of investment securities, income, and expenses, at the rate of exchange prevailing on the respective dates of such transactions. The net asset values per share of Portfolios which invest in securities denominated in foreign currencies will be affected by changes in currency exchange rates. Changes in foreign currency exchange rates may also affect the value of dividends and interest earned, gains and losses realized on sales of securities, and net investment income and gains, if any, to be dis- --P-64-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- tributed to shareholders of the Portfolios. The rate of exchange between the US dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios' books, and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of portfolio securities and other foreign currency denominated assets and liabilities at period end, resulting from changes in exchange rates. The Portfolios separate that portion of the results of operations resulting from changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held in the portfolios. Similarly, the Portfolios separate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period. c. Forward Currency Contracts -- The Seligman International Portfolios may enter into forward currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings, or other amounts receivable or payable in foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. The contracts are valued daily at current exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts. The gain or loss, if any, arising from the difference between the settlement value of the forward contract and the closing of such contract, is included in net realized gain or loss from foreign currency transactions. For federal income tax purposes, certain open forward currency contracts are treated as sold during the fiscal year and any gains or losses are recognized immediately. As a result, the amount of income distributable to shareholders may vary from the amount recognized for financial statement purposes. d. Federal Taxes -- The Portfolios' policy is to comply with the requirements of the Internal Revenue Code applicable to Regulated Investment Companies and to distribute substantially all of their taxable net income and net gain realized to shareholders. Therefore, no provisions for Federal income or excise taxes are required. e. Security Transactions and Related Investment Income --Investment transactions are recorded on trade dates. Interest income is recorded on the accrual basis. The Portfolios amortize market discounts and premiums on purchases of portfolio securities. Dividends receivable and payable are recorded on ex-dividend dates, except that certain dividends from foreign securities where the ex-dividend dates may have passed are recorded as soon as the Fund is informed of the dividend. f. Repurchase Agreements --The Portfolios may enter into repurchase agreements with commercial banks and with broker/dealers deemed to be creditworthy by J. & W. Seligman & Co. Incorporated (the "Manager"). Securities purchased subject to repurchase agreements are deposited with the Portfolios' custodians and, pursuant to the terms of the repurchase agreements, must have an aggregate market value greater than or equal to the repurchase price, plus accrued interest, at all times. Procedures have been established to monitor, on a daily basis, the market value of the repurchase agreements' underlying securities to ensure the existence of the proper level of collateral. g. Expense Allocations -- Expenses directly attributable to each Portfolio are charged to such Portfolio, and expenses that are applicable to more than one Portfolio are allocated among them. h. Distributions to Shareholders -- The treatment for financial statement purposes of distributions made during the year from net investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences primarily are caused by differences in the timing of the recognition of certain components of income, expense or capital gain and the recharacterization of foreign exchange gains or losses to either ordinary income or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassification will have no effect on net assets, results of operations, or net asset values the year ended December 31, 1999, were as follows: Portfolio Purchases Sales ------------ ------------ Bond $ 2,752,375 $ 2,716,199 Capital 35,890,837 42,495,567 Common Stock 20,079,705 37,108,873 Communications and Information 163,592,271 180,811,782 Frontier 15,604,502 29,879,044 --P-65-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - ----------------------------------------------------------------------- Portfolio Purchases Sales --------- ------------ ------------ Global Growth $ 5,762,433 $ 6,474,971 Global Smaller Companies 8,239,201 13,971,478 Global Technology 16,358,667 11,462,371 High-Yield Bond 16,072,853 17,136,244 Income 8,348,690 11,333,739 International Growth 7,380,369 9,371,996 Large-Cap Growth 3,806,111 1,208,876 Large-Cap Value 3,606,874 1,457,875 Small-Cap Value 4,532,884 3,631,914 For the year ended December 31, 1999, purchases and sales of US Government obligations were $983,201 and $2,335,283, respectively, for the Bond Portfolio, and $263,731 and $2,806,978, respectively, for the Income Portfolio. Identified cost of investments sold is used for both financial statement and federal income tax purposes. At December 31, 1999, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. The tax basis gross unrealized appreciation and depreciation of portfolio securities, including the effects of foreign currency transactions, were as follows: Unrealized Unrealized Portfolio Appreciation Depreciation --------- ------------ ------------ Bond $ 978 $ 195,967 Capital 9,126,475 405,275 Common Stock 12,650,728 1,347,682 Communications and Information 76,209,557 3,890,611 Frontier 7,813,118 2,413,985 Global Growth 4,887,428 350,978 Global Smaller Companies 6,818,792 1,531,636 Global Technology 9,321,142 199,682 High-Yield Bond 578,944 3,527,842 Income 797,772 514,503 International Growth 2,884,154 363,039 Large-Cap Growth 665,218 45,510 Large-Cap Value 583,020 793,046 Small-Cap Value 755,858 851,577 4. Management Fee, Administrative Services, and Other Transactions -- The Manager manages the affairs of the Fund and provides or arranges for the necessary personnel and facilities. The Manager's fee, which is calculated daily and payable monthly, is equal to 0.40%, on an annual basis, of each of Bond, Capital, Cash Management, Common Stock, and Income Portfolios' daily net assets; equal to 0.75%, on an annual basis, of each of Communications and Information and Frontier Portfolios' daily net assets; equal to 1.00%, on an annual basis, of each of the Seligman International Portfolios' daily net assets; and equal to 0.50%, on an annual basis, of High-Yield Bond Portfolio's daily net assets. The Manager's fee for the Large-Cap Growth Portfolio is equal to 0.70% per annum of the first $1 billion of average daily net assets, 0.65% per annum of the next $1 billion, and 0.60% per annum in excess of $2 billion of average daily net assets of the Portfolio. The Manager's fee for the Large-Cap Value Portfolio is equal to 0.80% per annum of the first $500 million of average daily net assets, 0.70% per annum of the next $500 million of average daily net assets, and 0.60% per annum in excess of $1 billion of average daily net assets of the Portfolio. The Manager's fee for the Small-Cap Value Portfolio is equal to 1.00% per annum of the first $500 million of average daily net assets, 0.90% per annum of the next $500 million of average daily net assets, and 0.80% per annum in excess of $1 billion of average daily net assets of the Portfolio. Effective July 1, 1998, Henderson Investment Management Limited (the "Subadviser") became adviser to the Seligman International Portfolios responsible for furnishing investment advice, research, and assistance with respect to their non-US investments. Under the subadvisory agreement, the Manager pays the Subadviser a subadvisory fee for each of the Seligman International Portfolios at a rate of 0.50% per annum of the average monthly assets under the Subadviser's supervision. The Subadviser is a wholly-owned subsidiary of Henderson plc, which is an indirect subsidiary of Amp Limited, an Australian life insurance and financial services company. --P-66-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- On January 21, 2000, pursuant to authorization from the Fund's Board of Directors, the Manager gave notice to the Subadviser of its termination, effective as of the close of business on March 31, 2000, of the subadvisory agreement between the Manager and the Subadviser in respect of Seligman Global Growth Portfolio, Seligman Global Technology Portfolio, and Seligman International Growth Portfolio (the "Global Portfolios"). During the notice period, the Subadviser will continue to provide the Global Portfolios with investment advice, research and assistance with respect to their non-US investments, subject to the Manager's overall supervision. Following the close of business on March 31, 2000, the Manager will assume full responsibility for the non-US investments of the Global Portfolios. The Subadviser will continue to act as subadviser with respect to Seligman Global Smaller Companies Portfolio. The Manager has agreed to reimburse expenses, other than the management fee, that exceed 0.20% per annum of the average daily net assets of each of Bond, Capital, Common Stock, Communications and Information, Frontier, High- Yield Bond and Income Portfolios. The Manager, at its discretion and until it determines otherwise, has elected to waive all of its fee for, and reimburse all of the expenses of, the Cash Management Portfolio. The Manager has agreed to reimburse expenses, other than the management fee, which exceed 0.40% per annum of the average daily net assets of each of the Seligman International Portfolios. The Manager, at its discretion, has also agreed to reimburse all expenses, other than the management fees, of the Large-Cap Growth, Large-Cap Value and Small-Cap Value Portfolios. The amounts of these reimbursements for the year ended December 31, 1999 are disclosed in the Statements of Operations. Compensation of all officers of the Fund, all directors of the Fund who are employees or consultants of the Manager, and all personnel of the Fund and the Manager is paid by the Manager or by the Subadviser. Seligman Advisors, Inc., agent for the distribution of the CLVA-2 Contracts and an affiliate of the Manager, received concessions of $155,856 from Canada Life Insurance Company of America and $9,591 from Canada Life Insurance Company of New York, after commissions paid to dealers for the sale of shares of the Fund. Certain officers and directors of the Fund are officers or directors of the Manager and the Distributor. The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Directors may elect to have their deferred fees accrue interest or earn a return based on the performance of the other funds in the Seligman Group of Investment Companies. The cost of such fees and earnings accrued thereon is included in directors' fees and expenses, and the accumulated balances thereof at December 31, 1999, are included in other liabilities. Deferred fees and related accrued earnings are not deductible for federal income tax purposes until such amounts are paid. 5. Capital Loss Carryforward -- At December 31, 1999, the Bond Portfolio, Frontier Portfolio, High-Yield Bond Portfolio, and Large-Cap Growth Portfolio had net capital loss carryforwards for federal income tax purposes of $212,775, $428,834, $1,594,792, and $1,091, respectively, which are available for offset against future taxable net capital gains. These net capital loss carryforwards will expire in 2007. Accordingly, no capital gain distributions are expected to be paid to shareholders until net capital gains have been realized in excess of the available capital loss carryforwards. 6. Outstanding Forward Exchange Currency Contracts -- At December 31, 1999, the Fund had outstanding forward exchange currency contracts to purchase or sell foreign currencies as follows:
Foreign In Exchange Settlement US $ Unrealized Contract Currency for US$ Date Value Depreciation - ------------------------------------------------------------------------------------------------------------ GLOBAL GROWTH PORTFOLIO Sales: Japanese yen 24,000,000 230,349 2/14/2000 236,500 $(6,151) ========== ======== ========== ======= ======== GLOBAL SMALLER COMPANIES PORTFOLIO Sales: Japanese yen 38,000,000 364,718 2/14/2000 374,458 $(9,740) ========== ======== ========== ======= ======== GLOBAL TECHNOLOGY PORTFOLIO Sales: Japanese yen 25,000,000 243,712 1/19/2000 245,290 $(1,578) ========== ======== ========== ======= ======== INTERNATIONAL GROWTH PORTFOLIO Sales: Japanese yen 27,000,000 259,142 2/14/2000 266,062 $(6,920) ========== ======== ========== ======= ========
--P-67-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Notes to Financial Statements (continued) - ------------------------------------------------------------------------------- 7. Capital Stock Transactions -- At December 31, 1999, there were 20,000,000 shares of Capital Stock authorized for each of Global Growth, Global Technology, Large-Cap Growth, Large-Cap Value, and Small-Cap Value Portfolios; 80,000,000 shares for each of Bond, Capital, Global Smaller Companies, International Growth, and Income Portfolios; and 100,000,000 shares for each of Cash Management, Common Stock, Communications and Information, Frontier, and High- Yield Bond Portfolios, all at a par value of $0.001 per share. Transactions in shares of Capital Stock were as follows:
Bond Capital Cash Management Portfolio Portfolio Portfolio ------------------------- ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ------------------------- ------------------------- ------------------------- 1999 1998 1999 1998 1999 1998 ----------- ----------- ----------- ----------- ----------- ------------ Sale of shares............................. 368,413 230,745 401,662 626,516 45,713,281 32,521,913 Shares issued in payment of dividends...... 37,845 36,957 408 2,179 737,469 540,798 Shares issued in payment of gain distributions............................ -- 6,965 290,498 67,599 -- -- ----------- ----------- ----------- ----------- ------------ ------------ Total...................................... 406,258 274,667 692,568 696,294 46,450,750 33,062,711 ----------- ----------- ----------- ----------- ------------ ------------ Shares redeemed............................ (577,822) (276,064) (698,555) (663,507) (39,360,497) (31,179,640) ----------- ----------- ----------- ----------- ------------ ------------ Increase (decrease) in shares.............. (171,564) (1,397) (5,987) 32,787 7,090,253 1,883,071 =========== =========== =========== =========== ============ ============ Communications Common Stock and Information Frontier Portfolio Portfolio Portfolio ------------------------- ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ------------------------- ------------------------- ------------------------- 1999 1998 1999 1998 1999 1998 ----------- ----------- ----------- ------------ ----------- ------------ Sale of shares............................. 960,847 787,642 2,745,361 13,848,034 1,649,550 14,693,247 Shares issued in payment of dividends...... 45,089 51,651 -- -- -- -- Shares issued in payment of gain distributions............................ 580,008 210,158 1,287,998 299,597 -- -- ----------- ----------- ----------- ------------ ----------- ------------ Total...................................... 1,585,944 1,049,451 4,033,359 14,147,631 1,649,550 14,693,247 ----------- ----------- ----------- ------------ ----------- ------------ Shares redeemed............................ (2,098,043) (806,174) (3,152,170) (13,711,324) (2,748,676) (14,899,641) ----------- ----------- ----------- ------------ ----------- ------------ Increase (decrease) in shares.............. (512,099) 243,277 881,189 436,307 (1,099,126) (206,394) =========== =========== =========== ============ =========== ============ Global Smaller Global Global Growth Companies Technology Portfolio Portfolio Portfolio ------------------------- ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ------------------------- ------------------------- ------------------------- 1999 1998 1999 1998 1999 1998 ----------- ----------- ----------- ------------ ----------- ------------ Sale of shares............................. 217,292 390,170 174,796 231,087 1,185,726 354,582 Shares issued in payment of dividends...... -- -- -- -- -- 64 Shares issued in payment of gain distributions............................ 68,170 3,970 -- 23,787 77,240 19,642 Total...................................... 285,462 394,140 174,796 254,874 1,262,966 374,288 ----------- ----------- ----------- ------------ ----------- ------------ Shares redeemed............................ (281,349) (239,884) (583,501) (306,840) (899,796) (280,044) ----------- ----------- ----------- ------------ ----------- ------------ Increase (decrease) in shares.............. 4,113 154,256 (408,705) (51,966) 363,170 94,244 =========== =========== =========== ============ =========== ============
--P-68-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
High-Yield Bond Income International Growth Portfolio Portfolio Portfolio ------------------------- ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ------------------------- ------------------------- ------------------------- 1999 1998 1999 1998 1999 1998 ----------- ----------- ----------- ------------ ----------- ------------ Sale of shares............................. 1,398,390 1,464,357 175,401 248,332 89,554 118,684 Shares issued in payment of dividends...... 325,663 251,200 42,285 53,119 -- 6,127 Shares issued in payment of gain distributions............................ -- 1,584 70,610 18,396 89,832 6,760 ----------- ----------- ----------- ------------ ----------- ------------ Total...................................... 1,724,053 1,717,141 288,296 319,847 179,386 131,571 ----------- ----------- ----------- ------------ ----------- ------------ Shares redeemed............................ (1,887,102) (711,853) (745,147) (276,496) (206,695) (166,031) ----------- ----------- ----------- ------------ ----------- ------------ Increase (decrease) in shares.............. (163,049) 1,005,288 (456,851) 43,351 (27,309) (34,460) =========== =========== =========== ============ =========== ============ Large-Cap Growth Large-Cap Value Small-Cap Value Portfolio Portfolio Portfolio --------- -------------------------- ------------------------- 5/1/99* Year 5/1/98* Year 5/1/98* to Ended to Ended to 12/31/99 12/31/99 12/31/98 12/31/99 12/31/98 ---------- ---------- ---------- ---------- ---------- Sale of shares............................. 263,099 486,900 485,276 351,392 400,968 Shares issued in payment of dividends...... -- 7,447 1,442 -- -- Shares issued in payment of gain distributions............................ -- -- 10,817 104,031 39,088 ---------- ---------- ---------- ---------- ---------- Total...................................... 263,099 494,347 497,535 455,423 440,056 ---------- ---------- ---------- ---------- ---------- Shares redeemed............................ (15,699) (271,884) (114,112) (247,838) (117,123) ---------- ---------- ---------- ---------- ---------- Increase in shares......................... 247,400 222,463 383,423 207,585 322,933 ========== ========== ========== ========== ==========
______________ * Commencement of operations. 8. Committed Line of Credit -- All of the Portfolios, except the Cash Management Portfolio, are participants in a joint $750 million committed line of credit that is shared by substantially all funds in the Seligman Group of Investment Companies. Each Portfolio's borrowings are limited to 10% (5% for the Seligman International Portfolios) of its net assets. Borrowings pursuant to the credit facility are subject to interest at a rate equal to the overnight federal funds rate plus 0.50%. Each Portfolio incurs a commitment fee of 0.08% per annum on its share of the unused portion of the credit facility. The credit facility may be drawn upon only for temporary purposes and is subject to certain other customary restrictions. The credit facility commitment expires in June 2000, but is renewable annually with the consent of the participating banks. For the year ended December 31, 1999, none of the Portfolios had borrowed from the credit facility. 9. Seligman Mutual Benefit Plan -- On December 31, 1998, MBLLife sold substantially all of its general account life insurance and annuity businesses to SunAmerica, Inc. The Order from the Superior Court of New Jersey (the "Order") approving the transaction provided for the termination of the Mutual Benefit Plan. The Order authorized MBL Life to take any and all actions necessary to facilitate the termination of the Mutual Benefit Plan. Contractholders were given the opportunity to exchange their contracts for contracts issued by other insurance companies until June 30, 1999. At June 30, 1999, there were no remaining contracts. --P-69-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Financial Highlights - ------------------------------------------------------------------------------- The tables below are intended to help you understand each Portfolio's financial performance for the past five years or from its inception, if less than five years. Certain information reflects financial results for a single share that was held throughout the periods shown. Per share amounts are calculated using average shares outstanding. "Total return" shows the rate that you would have earned (or lost) on an investment in each Portfolio, assuming you reinvested all your dividends and capital gain distributions. Total returns do not reflect any administrative fees and asset based sales charges that are associated with variable annuity contracts, and are not annualized for periods of less than one year.
Bond Portfolio Year Ended December 31, ----------------------------------------------------- 1999 1998 1997 1996 1995 -------- ------- ------- ------- ------- PER SHARE DATA: Net Asset Value, Beginning of Year............................ $ 10.38 $10.24 $ 9.89 $ 10.44 $ 9.27 ------- ------ ------- ------- ------- Income from Investment Operations: Net investment income......................................... 0.64 0.59 0.54 0.56 0.61 Net realized and unrealized gain (loss) on investments............................................... (1.10) 0.25 0.35 (0.55) 1.17 ------- ------ ------- ------- ------- Total from Investment Operations.............................. (0.46) 0.84 0.89 0.01 1.78 ------- ------ ------- ------- ------- Less Distributions: Dividends from net investment income.......................... (0.65) (0.59) (0.54) (0.56) (0.61) Distributions from net realized capital gain.................. -- (0.11) -- -- -- ------- ------ ------- ------- ------- Total Distributions........................................... (0.65) (0.70) (0.54) (0.56) (0.61) ------- ------ ------- ------- ------- Net Asset Value, End of Year.................................. $ 9.27 $10.38 $ 10.24 $ 9.89 $ 10.44 ======= ====== ======= ======= ======= TOTAL RETURN: (4.48)% 8.20% 8.98% 0.09% 19.18% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................ $ 4,947 $7,320 $ 7,232 $ 5,015 $ 4,497 Ratio of expenses to average net assets....................... 0.60% 0.60% 0.60% 0.60% 0.60% Ratio of net income to average net assets..................... 5.56% 5.58% 6.22% 5.97% 6.22% Portfolio turnover rate....................................... 64.22% 73.31% 170.12% 199.74% 114.42% Without management fee waiver:* Ratio of expenses to average net assets....................... 0.71% 0.82% 0.83% 0.79% 0.99% Ratio of net income to average net assets..................... 5.45% 5.36% 5.99% 5.78% 5.83%
- ------------------ * The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-70-- Seligman Portfolios, Inc. - --------------------------------------------------------------------------------
Capital Portfolio ----------------- Year Ended December 31, ---------------------- PER SHARE DATA: 1999 1998 1997 1996 1995 ------- ------- ------- ------- ------- Net Asset Value, Beginning of Year............................ $ 20.81 $ 18.10 $ 16.01 $ 14.91 $ 12.70 ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income......................................... 0.01 0.04 0.03 0.04 0.05 Net realized and unrealized gain (loss) on investments............................................... 10.21 3.89 3.35 2.12 3.39 ------- ------- ------- ------- ------- Total from Investment Operations.............................. 10.22 3.93 3.38 2.16 3.44 ------- ------- ------- ------- ------- Less Distributions: Dividends from net investment income.......................... (0.01) (0.04) (0.03) (0.04) (0.05) Distributions from net realized capital gain.................. (7.12) (1.18) (1.26) (1.02) (1.18) ------- ------- ------- ------- ------- Total Distributions........................................... (7.13) (1.22) (1.29) (1.06) (1.23) ------- ------- ------- ------- ------- Net Asset Value, End of Year.................................. $ 23.90 $ 20.81 $ 18.10 $ 16.01 $ 14.91 ======= ======= ======= ======= ======= TOTAL RETURN: 53.35% 22.19% 21.31% 14.51% 27.17% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................ $27,586 $24,141 $20,400 $14,313 $ 9,294 Ratio of expenses to average net assets....................... 0.59% 0.60% 0.60% 0.59% 0.60% Ratio of net income to average net assets..................... 0.03% 0.19% 0.16% 0.29% 0.32% Portfolio turnover rate....................................... 172.88% 130.86% 93.97% 88.78% 122.20% Without management fee waiver:* Ratio of expenses to average net assets....................... 0.62% 0.71% Ratio of net income to average net assets..................... 0.14% 0.21%
Cash Management Portfolio ------------------------- Year Ended December 31, ----------------------- PER SHARE DATA: 1999 1998 1997 1996 1995 ------- ------- ------- ------- ------- Net Asset Value, Beginning of Year............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income......................................... 0.050 0.053 0.054 0.053 0.055 ------- ------- ------- ------- ------- Total from Investment Operations.............................. 0.050 0.053 0.054 0.053 0.055 ------- ------- ------- ------- ------- Less Distributions: Dividends from net investment income.......................... (0.050) (0.053) (0.054) (0.053) (0.055) ------- ------- ------- ------- ------- Total Distributions........................................... (0.050) (0.053) (0.054) (0.053) (0.055) ------- ------- ------- ------- ------- Net Asset Value, End of Year.................................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= TOTAL RETURN: 5.07% 5.42% 5.52% 5.43% 5.60% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................ $17,611 $10,520 $ 8,635 $ 9,755 $ 7,800 Ratio of expenses to average net assets....................... -- -- -- -- -- Ratio of net income to average net assets..................... 4.99% 5.30% 5.39% 5.30% 5.48% Without management fee waiver and expense reimbursement:* Ratio of expenses to average net assets....................... 0.65% 0.67% 0.79% 0.63% 0.87% Ratio of net income to average net assets..................... 4.34% 4.63% 4.60% 4.67% 4.61%
- ----------------- * The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-71-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Financial Highlights (continued) - -------------------------------------------------------------------------------- Common Stock Portfolio - --------------------------------------------------------------------------------
Year Ended December 31, -------------------------------------------------- PER SHARE DATA: 1999 1998 1997 1996 1995 -------- -------- -------- -------- -------- Net Asset Value, Beginning of Year................. $ 18.63 $ 16.28 $ 15.92 $ 15.44 $ 13.78 -------- -------- ------- ------- ------- Income from Investment Operations: Net investment income.............................. 0.32 0.29 0.33 0.34 0.35 Net realized and unrealized gain (loss) on investments.................................... 2.03 3.61 3.01 2.79 3.40 -------- -------- ------- ------- ------- Total from Investment Operations................... 2.35 3.90 3.34 3.13 3.75 -------- -------- ------- ------- ------- Less Distributions: Dividends from net investment income............... (0.32) (0.31) (0.32) (0.34) (0.35) Distributions from net realized capital gain....... (4.05) (1.24) (2.66) (2.31) (1.74) -------- -------- ------- ------- ------- Total Distributions................................ (4.37) (1.55) (2.98) (2.65) (2.09) -------- -------- ------- ------- ------- Net Asset Value, End of Year....................... $ 16.61 $ 18.63 $ 16.28 $ 15.92 $ 15.44 ======== ======== ======= ======= ======= TOTAL RETURN: 13.15% 24.16% 21.31% 20.08% 27.28% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)............. $ 47,303 $ 62,588 $50,737 $37,168 $28,836 Ratio of expenses to average net assets............ 0.52% 0.52% 0.53% 0.53% 0.54% Ratio of net income to average net assets.......... 1.30% 1.61% 1.92% 1.99% 2.42% Portfolio turnover rate............................ 38.11% 55.55% 80.13% 50.33% 55.48%
- -------------------------------------------------------------------------------- Communications and Information Portfolio - --------------------------------------------------------------------------------
Year Ended December 31, -------------------------------------------------- PER SHARE DATA: 1999 1998 1997 1996 1995 -------- -------- -------- -------- -------- Net Asset Value, Beginning of Year................. $ 17.14 $ 13.09 $ 14.69 $ 13.50 $ 10.44 -------- -------- ------- ------- ------- Income from Investment Operations: Net investment income (loss)....................... (0.00) (0.08) (0.08) (0.04) (0.13) Net realized and unrealized gain on investments.................................... 14.26 4.81 3.13 1.23 4.15 -------- -------- ------- ------- ------- Total from Investment Operations................... 14.26 4.73 3.05 1.19 4.02 -------- -------- ------- ------- ------- Less Distributions: Distributions from net realized capital gain....... (4.70) (0.68) (4.65) -- (0.96) -------- -------- ------- ------- ------- Total Distributions................................ (4.70) (0.68) (4.65) -- (0.96) -------- -------- ------- ------- ------- Net Asset Value, End of Year....................... $ 26.70 $ 17.14 $ 13.09 $ 14.69 $ 13.50 ======== ======== ======= ======= ======= TOTAL RETURN: 85.81% 36.49% 22.22% 8.81% 38.55% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)............. $213,961 $122,279 $87,633 $60,645 $38,442 Ratio of expenses to average net assets............ 0.86% 0.87% 0.87% 0.87% 0.95% Ratio of net income (loss) to average net assets... (0.51)% (0.56)% (0.49)% (0.32)% (0.89)% Portfolio turnover rate............................ 118.16% 132.57% 277.14% 167.20% 96.62%
___________________ See Notes to Financial Statements. --P-72-- Seligman Portfolios, Inc.
Frontier Portfolio Global Growth Portfolio ---------------------- ------------------------ Year Ended December 31, Year Ended December 31, 5/1/96* --------------------------------------- ------------------------------------ to PER SHARE DATA: 1999 1998 1997 1996 1995 1999 1998 1997 12/31/96 ------- ------- ------- ------- ------- ------- ------ ------ --------- Net Asset Value, Beginning of Period .................. $ 15.55 $ 15.78 $ 14.98 $ 13.56 $ 10.58 $ 13.33 $ 11.03 $ 9.91 $ 10.00 ------- ------- ------- ------- ------- ------- -------- ------ --------- Income from Investment Operations: Net investment income (loss). (0.10) (0.08) (0.08) (0.06) (0.07) (0.06) (0.01) 0.01 0.01 Net realized and unrealized gain (loss) on investments.............. 2.68 (0.15) 2.47 3.28 3.58 7.31 2.25 1.79 0.02 Net realized and unrealized gain (loss) on foreign currency transactions............... -- -- -- -- -- (0.44) 0.14 (0.56) (0.11) ------- ------- ------- ------- ------- ------- -------- ------ --------- Total from Investment Operations.................. 2.58 (0.23) 2.39 3.22 3.51 6.81 2.38 1.24 (0.08) ------- ------- ------- ------- ------- ------- -------- ------ --------- Less Distributions: Dividends from net investment income .......... -- -- -- -- -- -- -- -- (0.01) Distributions from net realized capital gain....... -- -- (1.59) (1.80) (0.53) (1.92) (0.08) (0.12) -- ------- ------- ------- ------- ------- ------- -------- ------ --------- Total Distributions:......... -- -- (1.59) (1.80) (0.53) (1.92) (0.08) (0.12) (0.01) ------- ------- ------- ------- ------- ------- -------- ------ --------- Net Asset Value, End of Period...................... $ 18.13 $ 15.55 $ 15.78 $ 14.98 $ 13.56 $ 18.22 $ 13.33 $ 11.03 $ 9.91 ======= ======= ======= ======= ======= ======= ======== ======= ========= TOTAL RETURN: 16.59% (1.46)% 16.33% 23.93% 33.28% 52.49% 21.60% 12.57% (0.78)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted).............. $25,706 $39,148 $42,973 $31,672 $12,476 $11,889 $ 8,643 $ 5,449 $ 1,590 Ratio of expenses to average net assets.......... 0.95% 0.92% 0.89% 0.92% 0.95% 1.40% 1.40% 1.40% 1.40%+ Ratio of net income (loss) to average net assets......... (0.68)% (0.51)% (0.49)% (0.37)% (0.55)% (0.38)% (0.06)% 0.01% 0.37%+ Portfolio turnover rate...... 57.93% 86.52% 101.68% 119.74% 106.48% 69.18% 48.99% 77.85% 12.99% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets................. 0.96% 1.37% 1.45% 1.60% 2.11% 6.04%+ Ratios of net income (loss) to average net assets....... (0.69)% (0.97)% (0.43)% (0.26)% (0)%+
__________________ * Commencement of operations. + Annualized. ++ The Manager, and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-73-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Financial Highlights (continued) - -------------------------------------------------------------------------------
Global Smaller Companies Portfolio Global Technology Portfolio --------------------------------------------- ---------------------------- Year Ended December 31, Year Ended December 31, 5/1/96* ---------------------------------------------- -------------------------- to PER SHARE DATA: 1999 1998 1997 1996 1995 1999 1998 1997 12/31/96 ------- ------- ------- ------- ------- ------- -------- ------- -------- Net Asset Value, Beginning of Period..... $ 13.62 $ 12.98 $ 12.87 11.67 $ 10.31 $ 13.85 $ 10.59 $10.32 $ 10.00 ------- ------- ------- ------- ------- ------- ------- ------- --------- Income from Investment Operations: Net investment income (loss)............. (0.06) (0.01) 0.02 0.02 0.05 (0.09) (0.05) 0.01 -- Net realized and unrealized gain on investments......................... 4.10 1.02 1.17 2.31 2.04 16.25 3.81 2.15 0.30 Net realized and unrealized gain (loss) on foreign currency transactions....... (0.18) (0.17) (0.75) (0.16) (0.30) (0.04) 0.11 (0.19) 0.10 ------- ------- ------- ------- ------- ------- ------- ------- --------- Total from Investment Operations......... 3.86 0.84 0.44 2.17 1.79 16.12 3.87 1.97 0.40 ------- ------- ------- ------- ------- ------- ------- ------- --------- Less Distributions: Dividends from net investment income..... -- -- (0.02) (0.02) (0.05) -- -- (0.01) -- Distributions from net realized capital gain........................... -- (0.20) (0.31) (0.95) (0.38) (2.55) (0.61) (1.69) (0.08) ------- ------- ------- ------- ------- ------- ------- ------- --------- Total Distributions...................... -- (0.20) (0.33) (0.97) (0.43) (2.55) (0.61) (1.70) (0.08) ------- ------- ------- ------- ------- ------- ------- ------- --------- Net Asset Value, End of Period........... $ 17.48 $ 13.62 $ 12.98 $ 12.87 $ 11.67 $ 27.42 $ 13.85 $ 10.59 $ 10.32 ======= ======= ======= ======= ======= ======= ======= ======= ========= TOTAL RETURN: 28.34% 6.58% 3.43% 18.66% 17.38% 118.80% 36.80% 19.53% 4.01% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted)......................... $19,569 $20,814 $20,505 $16,876 $ 4,837 $22,087 $ 6,130 $3,686 $ 1,364 Ratio of expenses to average net assets..................... 1.40% 1.40% 1.40% 1.40% 1.39% 1.40% 1.40% 1.40% 1.40%+ Ratio of net income (loss) to average net assets..................... (0.46)% (0.06)% 0.24% 0.23% 0.64% (0.51)% (0.43)% 0.12% 0.60%+ Portfolio turnover rate.................. 46.75% 66.40% 64.81% 62.31% 55.65% 116.88% 82.27% 167.36% 45.04% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets...................... 1.60% 1.50% 1.56% 1.90% 3.84% 1.41% 1.80% 2.10% 4.71%+ Ratio of net income (loss) to average net assets...................... (0.66)% (0.16)% 0.08% (0.27)% (1.81)% (0.52)% (0.83)% (0.58)% (2.71)%+
- ------------------- * Commencement of operations. + Annualized. ++ The Manager, and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-74-- Seligman Portfolios, Inc.
High-Yield Bond Portfolio Income Portfolio ------------------------- ---------------------- Year Ended December 31, 5/1/95* Year Ended December 31, ------------------------------------- to ------------------------------------------- PER SHARE DATA: 1999 1998 1997 1996 12/31/95 1999 1998 1997 1996 1995 ------- ------- ------- ------- --------- ------ ------ ----- ----- ------ Net Asset Value, Beginning of Period...... $ 10.87 $ 11.87 $ 11.19 $ 10.50 $ 10.00 $11.01 $ 10.80 $ 10.52 $ 10.56 $ 9.97 ------- ------- ------- ------- --------- ------ ------- ------- ------- ------- Income from Investment Operations: Net investment income...... 1.19 1.11 0.91 0.77 0.22 0.53 0.45 0.56 0.58 0.60 Net realized and unrealized gain (loss) on investments............ (1.27) (0.99) 0.78 0.77 0.52 (0.23) 0.38 0.91 0.13 1.19 ------- ------- ------- ------- --------- ------ ------- ------- ------- ------- Total from Investment Operations................ (0.08) 0.12 1.69 1.54 0.74 0.30 0.83 1.47 0.71 1.79 ------- ------- ------- ------- --------- ------ ------- ------- ------- ------- Less Distributions: Dividends from net investment income........ (1.20) (1.11) (0.90) (0.77) (0.22) (0.52) (0.46) (0.55) (0.58) (0.60) Distributions from net realized capital gain.... -- (0.01) (0.11) (0.08) (0.02) (0.88) (0.16) (0.64) (0.17) (0.60) ------- ------- ------- ------- --------- ------ ------- ------- ------- ------- Total Distributions........ (1.20) (1.12) (1.01) (0.85) (0.24) (1.40) (0.62) (1.19) (0.75) (1.20) ------- ------- ------- ------- --------- ------ ------- ------- ------- ------- Net Asset Value, End of Year............. $ 9.59 $ 10.87 $ 11.87 $ 11.19 $ 10.50 $ 9.91 $ 11.01 $ 10.80 $ 10.52 $ 10.56 ======= ======= ======= ======= ========= ====== ======= ======= ======= ======= TOTAL RETURN: (0.75)% 1.02% 15.09% 14.62% 7.37% 2.87% 7.76% 14.02% 6.66% 17.98% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted)........... $26,892 $32,253 $23,268 $11,176 $ 3,009 $8,595 $14,582 $13,835 $13,717 $12,619 Ratio of expenses to average net assets....... 0.70% 0.70% 0.70% 0.70% 0.70%+ 0.60% 0.60% 0.60% 0.59% 0.60% Ratio of net income to average net assets..... 10.33% 9.60% 9.61% 9.77% 7.46%+ 3.62% 3.94% 4.71% 5.37% 5.55% Portfolio turnover rate.... 57.05% 43.13% 74.54% 117.01% 67.55% 75.08% 70.45% 96.99% 19.59% 51.22% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets........ 0.77% 0.74% 0.79% 0.88% 4.38%+ 0.72% 0.61% 0.63% 0.62% Ratios of net income to average net assets..... 10.26% 9.56% 9.52% 9.59% 3.78%+ 3.50% 3.93% 4.68% 5.53%
- ---------------- * Commencement of operations. + Annualized. ++ The Manager, and Seligman Henderson, the former subadviser to the Seligman International Portfolios, at their discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-75-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Financial Highlights (continued) - -------------------------------------------------------------------------------
Large-Cap Growth Large-Cap Small-Cap International Growth Portfolio Portfolio Value Value Portfolio ------------------------------ --------- Portfolio --------------- ---------- Year Ended December 31, 5/1/99* Year 5/1/98* Year 5/1/98* ----------------------------------------------- to Ended to Ended to PER SHARE DATA: 1999 1998 1997 1996 1995 12/31/99 12/31/99 12/31/98 12/31/99 12/31/98 ------ ------- ------- ------- --------- -------- -------- -------- -------- -------- Net Asset Value, Beginning of Period...... $ 15.37 $13.54 $ 12.96 $ 12.39 $ 11.34 $ 10.00 $ 9.66 $ 10.00 $ 7.31 $ 10.00 ------- ------ ------- ------- ------- --------- ------- ------- ------ -------- Income from Investment Operations: Net investment income (loss)................... (0.05) 0.08 0.03 0.07 0.15 -- 0.10 0.04 (0.03) (0.02) Net realized and unrealized gain (loss) on investments 4.69 1.90 2.11 1.13 0.90 2.16 (0.37) (0.07) 2.49 (1.73) Net realized and unrealized gain (loss) on foreign currency transactions............. (0.73) 0.16 (1.06) (0.32) 0.24 -- -- -- -- -- ------- ------ ------- ------- ------- --------- ------- ------- ------ -------- Total from Investment Operations............... 3.91 2.14 1.08 0.88 1.29 2.16 (0.27) (0.03) 2.46 (1.75) ------- ------ ------- ------- ------- --------- ------- ------- ------ -------- Less Distributions: Dividends from net investment income........ -- (0.15) (0.03) (0.07) (0.15) -- (0.11) (0.04) -- -- Distributions from net realized capital gain...... (2.65) (0.16) (0.47) (0.24) (0.09) -- -- (0.27) (1.69) (0.94) ------- ------ ------- ------- ------- --------- ------- ------- ------ -------- Total Distributions........ (2.65) (0.31) (0.50) (0.31) (0.24) -- (0.11) (0.31) (1.69) (0.94) ------- ------ ------- ------- ------- --------- ------- ------- ------ -------- Net Asset Value, End of Period............ $ 16.63 $15.37 $ 13.54 $ 12.96 $ 12.39 $ 12.16 $ 9.28 $ 9.66 $ 8.08 $ 7.31 ======= ====== ======= ======= ======= ========= ======= ======= ====== ======== TOTAL RETURN: 26.64% 15.81% 8.35% 7.08% 11.34% 21.60% (2.76)% (0.26)% 35.26% (17.00)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted)........... $10,248 $9,893 $ 9,182 $ 7,242 $ 4,183 $ 3,668 $ 5,758 $ 3,845 $4,403 $ 2,469 Ratio of expenses to average net assets....... 1.39% 1.40% 1.40% 1.40% 1.35% 0.70%+ 0.80% 0.80%+ 1.00% 1.00%+ Ratio of net income (loss) to average net assets.... 0.33% 0.52% 0.43% 0.70% 1.01% (0.03)%+ 1.18% 1.11%+ (0.27)% (0.34)%+ Portfolio turnover rate.... 79.17% 75.81% 89.43% 48.53% 41.40% 56.69% 28.01% 65.82% 90.51% 73.87% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets....... 1.66% 1.78% 2.07% 2.30% 3.40% 1.52%+ 1.13% 2.24%+ 1.41% 3.08%+ Ratio of net income (loss) to average net assets..... 0.06% 0.14% (0.24)% (0.20)% (1.04)% (0.85)%+ 0.85% (0.33)%+ (0.33)%+ (2.43)%+
- ------------------ * Commencement of operations. + Annualized. ++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. --P-76-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Report of the Independent Auditors - ------------------------------------------------------------------------------- The Directors and Shareholders, Seligman Portfolios, Inc.: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Seligman Portfolios, Inc. (comprising, respectively, the Seligman Bond Portfolio, Seligman Capital Portfolio, Seligman Cash Management Portfolio, Seligman Common Stock Portfolio, Seligman Communications and Information Portfolio, Seligman Frontier Portfolio, Seligman Global Growth Portfolio, Seligman Global Smaller Companies Portfolio, Seligman Global Technology Portfolio, Seligman High-Yield Bond Portfolio, Seligman Income Portfolio, Seligman International Growth Portfolio, Seligman Large-Cap Growth Portfolio, Seligman Large-Cap Value Portfolio, and Seligman Small-Cap Value Portfolio, collectively referred to as the "Fund") as of December 31, 1999, and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 1999, by correspondence with the custodians and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective portfolios constituting Seligman Portfolios, Inc. at December 31, 1999, the results of their operations, the changes in their net assets, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. Ernst & Young LLP New York, New York February 7, 2000 --P-77-- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Board of Directors - ------------------------------------------------------------------------------- John R. Galvin 2, 4 Dean, Fletcher School of Law and Diplomacy at Tufts University Director, Raytheon Company Alice S. Ilchman 3, 4 Trustee, Committee for Economic Development Chairman, The Rockefeller Foundation Frank A. McPherson 2, 4 Director, Kimberly-Clark Corporation Director, Baptist Medical Center Director, Conoco Inc. John E. Merow 2, 4 Retired Chairman and Senior Partner, Sullivan & Cromwell, Law Firm Director, Commonwealth Industries, Inc. Director, New York Presbyterian Hospital Betsy S. Michel 2, 4 Trustee, The Geraldine R. Dodge Foundation William C. Morris 1 Chairman Chairman of the Board, J. & W. Seligman & Co. Incorporated Chairman, Carbo Ceramics Inc. Director, Kerr-McGee Corporation James C. Pitney 3, 4 Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm James Q. Riordan 3, 4 Director, KeySpan Energy Corporation Trustee, Committee for Economic Development Director, Public Broadcasting Service Richard R. Schmaltz 1 Managing Director, Director of Investments, J. & W. Seligman & Co. Incorporated Trustee Emeritus, Colby College Robert L. Shafer 3, 4 Retired Vice President, Pfizer Inc. James N. Whitson 2, 4 Director and Consultant, Sammons Enterprises, Inc. Director, C-SPAN Director, CommScope, Inc. Brian T. Zino 1 President President, J. & W. Seligman & Co. Incorporated Chairman, Seligman Data Corp. Director, ICI Mutual Insurance Company Member of the Board of Governors, Investment Company Institute Director Emeritus Fred E. Brown Director and Consultant, J. & W. Seligman & Co. Incorporated - ------------------------------------------------------------------------------- Member: - ------------------------------------------------------------------------------- 1 Executive Committee 2 Audit Committee 3 Director Nominating Committee 4 Board Operations Committee - ------------------------------------------------------------------------------- Executive Officers - ------------------------------------------------------------------------------- William C. Morris Chairman Brian T. Zino President Brian Ashford-Russell Vice President Daniel J. Charleston Vice President Iain C. Clark Vice President Nitin Mehta Vice President Arsen Mrakovcic Vice President Marion S. Schultheis Vice President Charles C. Smith, Jr. Vice President Lawrence P. Vogel Vice President Paul H. Wick Vice President Gary S. Zeltzer Vice President Thomas G. Rose Treasurer Frank J. Nasta Secretary - ------------------------------------------------------------------------------- Manager - ------------------------------------------------------------------------------- J. & W. Seligman & Co. Incorporated 100 Park Avenue New York, New York 10017 Subadviser Henderson Investment Management Limited 3 Finsbury Avenue London EC2M 2PA General Distributor Seligman Advisors, Inc. 100 Park Avenue New York, New York 10017 Custodians State Street Bank & Trust Co. The Chase Manhattan Bank General Counsel Sullivan & Cromwell Independent Auditors Ernst & Young LLP -----END PRIVACY-ENHANCED MESSAGE-----