-----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, PJEME+4wmvftWPXYVSp60nfJ7cjuqwMSKM0RlkgBaRP5qTYkx7Go+ENL/XEaA1go 1dqhSYypx+HFkKEXAiworg== 0000931763-01-000387.txt : 20010312 0000931763-01-000387.hdr.sgml : 20010312 ACCESSION NUMBER: 0000931763-01-000387 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010308 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: 1564001 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 0001.txt ANNUAL REPORT [LETTERHEAD OF CANADA LIFE] February, 2001 Dear Trillium(R) Policyowner: Enclosed is the Trillium Annual Report for the period ending December 31, 2000. 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, Ronald E. Beettam Encl. TRILLIUM(R) CANADA LIFE A Variable Annuity [LOGO] 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).
VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ended December 31, 2000 TRILLIUM [LOGO] Assuming Contract Continues A VARIABLE ANNUITY Since Inception 1 Year 3 Year 5 Year Inception Date - -------------------------------------------------------------------------------------------------------------------- Seligman Communications and Information Portfolio (37.11)% 15.73% 14.83% 18.12% 10/4/94 - -------------------------------------------------------------------------------------------------------------------- Seligman Global Technology Portfolio (24.84) 29.79 -- 23.20 5/1/96 - -------------------------------------------------------------------------------------------------------------------- Seligman Frontier Portfolio (17.04) (2.53) 5.27 9.73 10/4/94 - -------------------------------------------------------------------------------------------------------------------- Seligman Small-Cap Value Portfolio 31.10 -- -- 14.56 5/1/98 - -------------------------------------------------------------------------------------------------------------------- Seligman Global Smaller Companies Portfolio (15.85) 3.79 5.85 7.63 10/4/94 - -------------------------------------------------------------------------------------------------------------------- Seligman Capital Portfolio 6.95 24.87 21.24 17.33 5/3/93 - -------------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Growth Portfolio (17.24) -- -- (0.20) 5/1/99 - -------------------------------------------------------------------------------------------------------------------- Seligman Global Growth Portfolio (16.99) 14.36 -- 10.99 5/1/96 - -------------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Value Portfolio 24.05 -- -- 6.21 5/1/98 - -------------------------------------------------------------------------------------------------------------------- Seligman Common Stock Portfolio (11.81) 6.37 11.17 11.34 5/3/93 - -------------------------------------------------------------------------------------------------------------------- Seligman International Growth Portfolio (33.44) (1.75) 1.27 3.62 5/3/93 - -------------------------------------------------------------------------------------------------------------------- Seligman Income Portfolio (3.60) 1.25 4.07 4.37 5/3/93 - -------------------------------------------------------------------------------------------------------------------- Seligman High-Yield Bond Portfolio (10.23) (4.38) 2.23 3.07 5/1/95 - -------------------------------------------------------------------------------------------------------------------- Seligman Bond Portfolio 8.68 2.95 2.87 3.78 5/3/93 - -------------------------------------------------------------------------------------------------------------------- Seligman Cash Management Portfolio Current Yield 5.89%+ 4.88 4.12 3.98 3.40 5/3/93 - --------------------------------------------------------------------------------------------------------------------
+ Annualized for the seven-day period ended December 31, 2000. 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 4.95% as of December 31, 2000. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The three-, five-, seven-, 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. Prior to March 31, 2000, Seligman employed a sub-advisor which was responsible for providing portfolio management services with respect to the non-US investments of the Global Technology, Global Smaller Companies, Global Growth, and International Growth Portfolios. After March 31, 2000, Seligman will continue to use such sub-advisory services only for Seligman Global Smaller Companies Portfolio. 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 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 since the variable account commenced operations on 5/3/93. For performance figures with CDSC, please see reverse side. 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. Withdrawals may be subject to federal income tax, and a 10% federal tax penalty if made before age 591 2. Withdrawals will reduce a policy's cash value and death benefit. Depending on the performance of the underlying investment options, the cash value available for withdrawals may be worth more or less than the original amount invested. The products of technology companies may be subject to severe competition and rapid obsolescence, and technology stocks may be subject to greater price fluctuations, government regulation, and limited liquidity as compared to other investments. A portfolio that concentrates its investments in one sector of the economy, such as technology, 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 rapid 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 Ended - ---------------------------- December 31, 2000 Assuming Contract is Surrendered at End of Period Since Inception 1 Year 3 Year 5 Year Inception Date - ---------------------------------------------------------------------------------------------------------------- Seligman Communications and Information Portfolio (42.51)% 14.60% 14.51% 18.00% 10/4/94 - ---------------------------------------------------------------------------------------------------------------- Seligman Global Technology Portfolio (30.24) 28.89 -- 22.84 5/1/96 - ---------------------------------------------------------------------------------------------------------------- Seligman Frontier Portfolio (22.44) (4.14) 4.82 9.56 10/4/94 - ---------------------------------------------------------------------------------------------------------------- Seligman Small-Cap Value Portfolio 25.70 -- -- 13.20 5/1/98 - ---------------------------------------------------------------------------------------------------------------- Seligman Global Smaller Companies Portfolio (21.25) 2.38 5.42 7.43 10/4/94 - ---------------------------------------------------------------------------------------------------------------- Seligman Capital Portfolio 1.55 23.90 20.99 17.33 5/3/93 - ---------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Growth Portfolio (22.64) -- -- (3.48) 5/1/99 - ---------------------------------------------------------------------------------------------------------------- Seligman Global Growth Portfolio (22.39) 13.20 -- 10.46 5/1/96 - ---------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Value Portfolio 18.65 -- -- 4.66 5/1/98 - ---------------------------------------------------------------------------------------------------------------- Seligman Common Stock Portfolio (17.21) 5.03 10.81 11.34 5/3/93 - ---------------------------------------------------------------------------------------------------------------- Seligman International Growth Portfolio (38.84) (3.33) 0.75 3.62 5/3/93 - ---------------------------------------------------------------------------------------------------------------- Seligman Income Portfolio (9.00) (0.23) 3.61 4.37 5/3/93 - ---------------------------------------------------------------------------------------------------------------- Seligman High-Yield Bond Portfolio (15.63) (6.05) 1.73 2.65 5/1/95 - ---------------------------------------------------------------------------------------------------------------- Seligman Bond Portfolio 3.28 1.51 2.39 3.78 5/3/93 - ---------------------------------------------------------------------------------------------------------------- Seligman Cash Management Portfolio Current Yield 5.89%+ (0.52) 2.72 3.51 3.40 5/3/93 - ----------------------------------------------------------------------------------------------------------------
+ Annualized for the seven-day period ended December 31, 2000. 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 4.95% as of December 31, 2000. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The three-, five-, seven-, 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 For more information contact: Seligman Advisors, Inc., 100 Park Avenue, New York, NY 10017 . (800) 221-2783 Prior to March 31, 2000, Seligman employed a sub-advisor which was responsible for providing portfolio management services with respect to the non-US investments of the Global Technology, Global Smaller Companies, Global Growth, and International Growth Portfolios. After March 31, 2000, Seligman will continue to use such sub-advisory services only for Seligman Global Smaller Companies Portfolio. 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 of the variable portfolios reflects the performance of Seligman Portfolios, Inc., the underlying investment vehicle for the Trillium Variable Account, adjusted for Trillium's current fees and charges and including the maximum CDSC of 6% since the variable account commenced operations on 5/3/93. Trillium's CDSC for current premiums (premiums paid during the current and previous six policy years) starts at 6% and decreases in steps, depending on the number of policy years since the premium was paid, as follows: less than two years, 6%; at least two, but less than four, 5%; at least four, but less than five, 4%; at least five, but less than six, 3%; at least six, but less than seven, 2%; at least seven, no charge. 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. Withdrawals may be subject to federal income tax, and a 10% federal tax penalty if made before age 591 2. Withdrawals will reduce a policy's cash value and death benefit. Depending on the performance of the underlying investment options, the cash value available for withdrawals may be worth more or less than the original amount invested. Investing in Trillium portfolios involves risk, including possible loss of principal. 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 government agency, and are subject to market fluctuations. The attached are incorporated by reference herein to the Annual Report dated December 31, 2000, filed by and on behalf of the following: Seligman Portfolios, Inc., filed March 6, 2001 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. - ------------------------------------------------------------------------------- ANNUAL REPORT - ------------------------------------------------------------------------------- TRILLIUM A VARIABLE ANNUITY December 31, 2000 Total Returns* For the Year Ended December 31, 2000 Sub-Accounts: Bond .................................................... 8.73% Capital ................................................. 7.00 Cash Management ......................................... 4.92 Common Stock ............................................ (11.76) Communications and Information .......................... (37.07) Frontier ................................................ (16.99) Global Growth ........................................... (16.94) Global Smaller Companies ................................ (15.81) Global Technology ....................................... (24.80) High-Yield Bond ......................................... (10.18) Income .................................................. (3.55) International Growth .................................... (33.40) Large-Cap Growth ........................................ (17.20) Large-Cap Value ......................................... 24.10 Small-Cap Value ......................................... 31.16 - ----------------- * 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. Seligman Portfolios, Inc. the underlying investment vehicle for ------------------------------------- TRILLIUM A Variable Annuity ------------------------------------- _____________________________________ _____________________________________ February 9, 2001 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, the 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 report for the twelve months ended December 31, 2000. Total returns are located on the page preceding this letter, and financial statements can be found in the pages immediately following this letter. The year 2000 was a year of reversals. The collapse of the technology bubble in March 2000 and clear signs of a slowing US economy prompted investors to seek quality and value, focusing their attention on "old economy" stocks. Value stocks made major share price advances, while technology and growth stocks were poor performers. For the first time since 1990, the Standard & Poor's 500 Composite Stock Index (S&P 500) posted a negative return for the year, as did the Nasdaq Composite Index and the Dow Jones Industrial Average. At the root of these shifts in the investment environment was the cooling US economy, slowed by a series of interest rate increases by the Federal Reserve Board. The economy grew at a 5.6% annualized pace in the second quarter of 2000, compared with 2.2% and 1.4% in the third and fourth quarters, respectively. Higher energy prices also played a major role in precipitating the economic downshift, eating into both corporate earnings and consumers' disposable income. The slowdown was more abrupt than many expected. Industrial production and consumer confidence both declined sharply. As a consequence, many companies missed earnings targets because profits were squeezed by higher borrowing costs and weaker demand. The profit shortfalls led to severe price declines in several areas, such as technology and growth. Meanwhile, fund flows returned to previously overlooked sectors, such as consumer staples and cyclical manufacturing. In response to this economic deterioration, the Fed lowered the federal funds rate by 0.5% to 6.0% on January 3, 2001, and by another 0.5% on January 31. This action was welcomed by investors, and, even though it did not immediately calm volatility, it will likely have a positive effect on liquidity and consumer confidence. Given the US budget surplus, the Fed has the flexibility to lower rates further, if necessary, to encourage economic growth. Looking ahead, we expect that economic activity will accelerate during the second half of 2001. While there are uncertainties (possible policy errors, high inventories, low consumer spending), we feel that there is ample reason for optimism. Energy prices should decrease because of lower demand, inflation is under control, and a federal tax cut under the new administration seems likely. On the global level, we think that central banks around the world will follow the Fed's lead and cut rates, thus providing a stimulus for growth. The volatility and emotion of the past year have served to reinforce several fundamental lessons of investing. The stock market works in cycles; valuation and earnings still matter; and diversification among different asset classes, investment styles, and market capitalizations is the key to long-term investment success. Thank you for your continued support of Trillium. We look forward to serving your investment needs for many years to come. 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 -- 1 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Statement of Net Assets - -------------------------------------------------------------------------------
Cash Common Communications Global Bond Capital Management Stock and Information Frontier Growth Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account ----------- ------------ ------------ ----------- ------------ ------------ ----------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values) .............. $6,345,005 $ 36,237,545 $ 10,831,728 $31,944,813 $ 99,661,699 $ 13,371,682 $ 7,893,857 Due from (to) Canada Life Insurance Company of America ................... -- -- (3,537) -- -- -- -- ---------- ------------ ------------ ----------- ------------ ------------ ----------- Net Assets .................. $6,345,005 $ 36,237,545 $ 10,828,191 $31,944,813 $ 99,661,699 $ 13,371,682 $ 7,893,857 ========== ============ ============ =========== ============ ============ =========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve .................. $6,345,005 $ 36,237,545 $ 10,828,191 $31,944,813 $ 99,661,699 $ 13,371,682 $ 7,893,857 ---------- ------------ ------------ ----------- ------------ ------------ ----------- Net Assets .................. $6,345,005 $ 36,237,545 $ 10,828,191 $31,944,813 $ 99,661,699 $ 13,371,682 $ 7,893,857 ========== ============ ============ =========== ============ ============ =========== Number of Units Outstanding .............. 355,508 603,416 6,865,725 809,224 3,517,554 746,471 484,393 ========== ============ ============ =========== ============ ============ =========== Net Asset Value Per Unit .... $ 17.8477 $ 60.0540 $ 1.5771 $ 39.4759 $ 28.3327 $ 17.9132 $ 16.2964 ========== ============ ============ =========== ============ ============ ===========
- ------------------------ See accompanying notes. - ------------------------------------------------------------------------------- Statement of Operations - -------------------------------------------------------------------------------
Cash Common Communications Global Bond Capital Management Stock and Information Frontier Growth Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account ----------- ------------ ------------ ----------- ------------ ------------ ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions ....... $ -- $ 1,838,707 $ 754,555 $ 1,392,197 $ 13,647,102 $ -- $ 123,601 Less mortality and expense risk charges (Note 6) .... 76,020 567,660 169,951 530,441 2,243,379 248,957 119,610 --------- ----------- ---------- ------------ ------------ ------------ ----------- Net investment income (loss) ................... (76,020) 1,271,047 584,604 861,756 11,403,723 (248,957) 3,991 --------- ----------- ---------- ------------ ------------ ------------ ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments ........... (75,275) 3,143,565 -- (2,247,086) 14,094,325 2,521,501 1,813,302 Net unrealized appreciation (depreciation) of investments .............. 627,126 (3,003,275) -- (3,144,893) (84,873,071) (4,609,178) (3,096,396) --------- ----------- ---------- ------------ ------------ ------------ ----------- Net Realized and Unrealized Gain (Loss) on Investments .............. 551,851 140,290 -- (5,391,979) (70,778,746) (2,087,677) (1,283,094) --------- ----------- ---------- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting from Operations .......... $ 475,831 $ 1,411,337 $ 584,604 $(4,530,223) $(59,375,023) $ (2,336,634) $(1,279,103) ========= =========== ========== =========== ============ ============ ===========
- --------------- See accompanying notes. -- 2 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------
Global Smaller Global High-Yield International Companies Technology Bond Income Growth Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account ----------- ----------- ----------- ----------- ------------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values) .............. $13,683,254 $18,860,466 $14,419,324 $5,285,392 $7,009,905 Due from (to) Canada Life Insurance Company of America ................... -- -- -- -- -- ----------- ----------- ----------- ---------- ---------- Net Assets .................. $13,683,254 $18,860,466 $14,419,324 $5,285,392 $7,009,905 =========== =========== =========== ========== ========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve .................. $13,683,254 $18,860,466 $14,419,324 $5,285,392 $7,009,905 ----------- ----------- ----------- ---------- ---------- Net Assets .................. $13,683,254 $18,860,466 $14,419,324 $5,285,392 $7,009,905 =========== =========== =========== ========== ========== Number of Units Outstanding .............. 862,493 711,386 1,211,489 237,020 531,957 =========== =========== =========== ========== ========== Net Asset Value Per Unit .... $ 15.8648 $ 26.5123 $ 11.9022 $ 22.2994 $ 13.1776 =========== =========== =========== ========== ========== Large-Cap Large-Cap Small-Cap Growth Value Value Sub-Accounts Sub-Account Sub-Account Sub-Account Combined ----------- ----------- ----------- ------------ NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values) .............. $4,699,857 $5,836,550 $5,586,124 $281,667,201 Due from (to) Canada Life Insurance Company of America ................... -- -- -- (3,537) ---------- ---------- ---------- ------------ Net Assets .................. $4,699,857 $5,836,550 $5,586,124 $281,663,664 ========== ========== ========== ============ NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve .................. $4,699,857 $5,836,550 $5,586,124 $281,663,664 ---------- ---------- ---------- ------------ Net Assets .................. $4,699,857 $5,836,550 $5,586,124 $281,663,664 ========== ========== ========== ============ Number of Units Outstanding .............. 471,175 496,436 388,359 18,292,606 ========== ========== ========== ============ Net Asset Value Per Unit .... $ 9.9748 $ 11.7569 $ 14.3839 ========== ========== ==========
- ------------------------------------------------------------------------------- For the Year Ended December 31, 2000 - -------------------------------------------------------------------------------
Global Smaller Global High-Yield International Companies Technology Bond Income Growth Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account ----------- ----------- ----------- ----------- ------------- NET INVESTMENT INCOME: Dividend and capital gain distributions ....... $ 477,400 $ 721,247 $ 6,648 $ 23,161 $ 357,301 Less mortality and expense risk charges (Note 6) .... 247,635 366,311 261,698 91,360 118,990 ----------- ----------- ----------- ---------- ----------- Net investment income (loss) ................... 229,765 354,936 (255,050) (68,199) 238,311 ----------- ----------- ----------- ---------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments ........... 1,106,489 2,426,643 (2,398,982) (315,362) (371,096) Net unrealized appreciation (depreciation) of investments .............. (4,058,471) (9,700,670) 805,441 160,287 (3,501,680) ----------- ----------- ----------- ---------- ----------- Net Realized and Unrealized Gain (Loss) on Investments .............. (2,951,982) (7,274,027) (1,593,541) (155,075) (3,872,776) ----------- ----------- ----------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting from Operations .......... $(2,722,217) $(6,919,091) $(1,848,591) $(223,274) $(3,634,465) =========== =========== =========== ========== =========== Large-Cap Large-Cap Small-Cap Growth Value Value Sub-Accounts Sub-Account Sub-Account Sub-Account Combined ----------- ----------- ----------- ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions ....... $ -- $ 40,176 $ 78,170 $ 19,460,265 Less mortality and expense risk charges (Note 6) .... 79,410 70,743 61,468 5,253,633 ----------- ---------- ---------- ------------ Net investment income (loss) ................... (79,410) (30,567) 16,702 14,206,632 ----------- ---------- ---------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments ........... 22,079 34,431 235,818 19,990,352 Net unrealized appreciation (depreciation) of investments .............. (1,140,232) 1,108,810 955,875 (113,470,327) ----------- ---------- ---------- ------------ Net Realized and Unrealized Gain (Loss) on Investments .............. (1,118,153) 1,143,241 1,191,693 (93,479,975) ----------- ---------- ---------- ------------ Net Increase (Decrease) in Net Assets Resulting from Operations .......... $(1,197,563) $1,112,674 $1,208,395 $(79,273,343) =========== ========== ========== ============
-- 3 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Statements of Changes in Net Assets - -------------------------------------------------------------------------------
Bond Capital Cash Management Sub-Account Sub-Account Sub-Account ------------------------- -------------------------- ------------------------- Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 12/31/00 12/31/99 ---------- ---------- ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss) ......... $ (76,020) $ 257,454 $ 1,271,047 $ 5,722,122 $ 584,604 $ 498,174 Net realized gain (loss) on investments ........................ (75,275) (144,807) 3,143,565 1,347,782 -- -- Net unrealized appreciation (depreciation) of investments ...... 627,126 (426,084) (3,003,275) 2,021,410 -- -- ---------- ---------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in net Assets Resulting from Operations.... 475,831 (313,437) 1,411,337 9,091,314 584,604 498,174 ---------- ---------- ----------- ----------- ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5) ......... 958,526 (48,827) 8,170,289 (453,005) (6,614,040) 7,396,543 ---------- ---------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions ....................... 958,526 (48,827) 8,170,289 (453,005) (6,614,040) 7,396,543 ---------- ---------- ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ...................... 1,434,357 (362,264) 9,581,626 8,638,309 (6,029,436) 7,894,717 Net Assets, Beginning of Period ...... 4,910,648 5,272,912 26,655,919 18,017,610 16,857,627 8,962,910 ---------- ---------- ----------- ----------- ----------- ----------- Net Assets, End of Period ............ $6,345,005 $4,910,648 $36,237,545 $26,655,919 $10,828,191 $16,857,627 ========== ========== =========== =========== =========== ===========
Global Technology High-Yield Bond Income Sub-Account Sub-Account Sub-Account ------------------------- --------------------------- ------------------------- Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 12/31/00 12/31/99 ---------- ---------- ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss).......... $ 354,936 $ 1,585,236 $ (255,050) $ 2,476,831 $ (68,199) $ 854,002 Net realized gain (loss) on investments......................... 2,426,643 3,349,814 (2,398,982) (1,389,315) (315,362) (19,359) Net unrealized appreciation (depreciation) of investments....... (9,700,670) 4,867,611 805,441 (1,657,637) 160,287 (717,827) ---------- ----------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in net Assets Resulting from Operations.... (6,919,091) 9,802,661 (1,848,591) (570,121) (223,274) 116,816 ---------- ----------- ----------- ----------- ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).......... 5,699,652 5,006,209 (8,958,188) (5,068,977) (2,371,933) (1,222,331) ---------- ----------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions........................ 5,699,652 5,006,209 (8,958,188) (5,068,977) (2,371,933) (1,222,331) ---------- ----------- ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets....................... (1,219,439) 14,808,870 (10,806,779) (5,639,098) (2,595,207) (1,105,515) Net Assets, Beginning of Period....... 20,079,905 5,271,035 25,226,103 30,865,201 7,880,599 8,986,114 ----------- ----------- ----------- ----------- ----------- ----------- Net Assets, End of Period............. $18,860,466 $20,079,905 $14,419,324 $25,226,103 $5,285,392 $7,880,599 =========== =========== =========== =========== =========== ===========
- ------------------ * Commencement of operations. See accompanying notes. -- 4 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Statements of Changes in Net Assets - -------------------------------------------------------------------------------
Communications and Common Stock Information Frontier Sub-Account Sub-Account Sub-Account -------------------------- -------------------------- ------------------------ Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 12/31/00 12/31/99 ----------- ----------- ------------ ------------ ------------ ------------ OPERATIONS: Net investment income (loss).......... $ 861,756 $ 8,858,927 $ 11,403,723 $ 23,834,219 $ (248,957) $ (309,166) Net realized gain (loss) on investments......................... (2,247,086) 1,788,619 14,094,325 8,073,059 2,521,501 (1,417,941) Net unrealized appreciation (depreciation) of investments....... (3,144,893) (5,762,124) (84,873,071) 47,083,794 (4,609,178) 2,941,214 ----------- ----------- ------------ ------------ ----------- ----------- Net Increase (Decrease) in net Assets Resulting from Operations.... (4,530,223) 4,885,422 (59,375,023) 78,991,072 (2,336,634) 1,214,107 ----------- ----------- ------------ ------------ ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).......... (9,200,281) (1,075,059) (13,003,160) (4,332,148) (5,231,095) (11,892,873) ----------- ----------- ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions........................ (9,200,281) (1,075,059) (13,003,160) (4,332,148) (5,231,095) (11,892,873) ----------- ----------- ------------ ------------ ----------- ----------- Total Increase (Decrease) in Net Assets....................... (13,730,504) 3,810,363 (72,378,183) 74,658,924 (7,567,729) (10,678,766) Net Assets, Beginning of Period....... 45,675,317 41,864,954 172,039,882 97,380,958 20,939,411 31,618,177 ----------- ----------- ------------ ------------ ----------- ----------- Net Assets, End of Period............. $31,944,813 $45,675,317 $ 99,661,699 $172,039,882 $13,371,682 $20,939,411 =========== =========== ============ ============ =========== =========== Global Smaller Global Growth Companies Sub-Account Sub-Account ------------------------- ------------------------ Year Year Year Year Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 ---------- ------------ ----------- ----------- OPERATIONS: Net investment income (loss).......... $ 3,991 $ 923,651 $ 229,765 $ (237,320) Net realized gain (loss) on investments......................... 1,813,302 790,461 1,106,489 246,754 Net unrealized appreciation (depreciation) of investments....... (3,096,396) 2,051,588 (4,058,471) 3,855,334 ---------- ----------- ----------- ----------- Net Increase (Decrease) in net Assets Resulting from Operations.... (1,279,103) 3,765,700 (2,722,217) 3,864,768 ---------- ----------- ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).......... (1,788,245) (691,469) (2,374,423) (4,591,356) ---------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions........................ (1,788,245) (691,469) (2,374,423) (4,591,356) ---------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets....................... (3,067,348) 3,074,231 (5,096,640) (726,588) Net Assets, Beginning of Period....... 10,961,205 7,886,974 18,779,894 19,506,482 ---------- ----------- ----------- ----------- Net Assets, End of Period............. $7,893,857 $10,961,205 $13,683,254 $18,779,894 ========== =========== =========== ===========
International Growth Large-Cap Growth Large-Cap Value Sub-Account Sub-Account Sub-Account ------------------------ ----------------------- ------------------------ Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 12/31/00 12/31/99 ----------- ---------- ----------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss).......... $ 238,311 $1,216,038 $ (79,410) $ (15,838) $ (30,567) $ (7,789) Net realized gain (loss) on investments......................... (371,096) 488,026 22,079 15,637 34,431 28,971 Net unrealized appreciation (depreciation) of investments....... (3,501,680) 322,636 (1,140,232) 484,748 1,108,810 (294,330) ----------- ---------- ----------- ---------- ---------- ---------- Net Increase (Decrease) in net Assets Resulting from Operations.... (3,634,465) 2,026,700 (1,197,563) 484,547 1,112,674 (273,148) ----------- ---------- ----------- ---------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).......... 785,045 (1,534,864) 2,926,727 2,486,146 (867,481) 2,286,079 ----------- ---------- ----------- ---------- ---------- ---------- Net Increase (Decrease) in Net Assets Arising from Capital Transactions........................ 785,045 (1,534,864) 2,926,727 2,486,146 (867,481) 2,286,079 ----------- ---------- ----------- ---------- ---------- ---------- Total Increase (Decrease) in Net Assets....................... (2,849,420) 491,836 1,729,164 2,970,693 245,193 2,012,931 Net Assets, Beginning of Period....... 9,859,325 9,367,489 2,970,693 -- 5,591,357 3,578,426 ----------- ---------- ----------- ---------- ---------- ---------- Net Assets, End of Period............. $7,009,905 $9,859,325 $4,699,857 $2,970,693 $5,836,550 $5,591,357 =========== ========== =========== ========== ========== ========== Small-Cap Value Sub-Accounts Sub-Account Combined ----------------------- --------------------------- Year Year Year Year Ended Ended Ended Ended 12/31/00 12/31/99 12/31/00 12/31/99 ---------- ---------- ------------ ------------ OPERATIONS: Net investment income (loss).......... $ 16,702 $ 704,760 $ 14,206,632 $ 46,361,301 Net realized gain (loss) on investments......................... 235,818 181,803 19,990,352 13,339,504 Net unrealized appreciation (depreciation) of investments....... 955,875 36,494 (113,470,327) 54,806,827 ---------- ---------- ------------ ------------ Net Increase (Decrease) in net Assets Resulting from Operations.... 1,208,395 923,057 (79,273,343) 114,507,632 ---------- ---------- ------------ ------------ CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).......... 290,248 955,227 (31,578,359) (12,780,705) ---------- ---------- ------------ ------------ Net Increase (Decrease) in Net Assets Arising from Capital Transactions........................ 290,248 955,227 (31,578,359) (12,780,705) ---------- ---------- ------------ ------------ Total Increase (Decrease) in Net Assets....................... 1,498,643 1,878,284 (110,851,702) 101,726,927 Net Assets, Beginning of Period....... 4,087,481 2,209,197 392,515,366 290,788,439 ---------- ---------- ------------ ------------ Net Assets, End of Period............. $5,586,124 $4,087,481 $281,663,664 $392,515,366 ========== ========== ============ ============
-- 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, 2000, is as follows:
Number of Shares Market Price Market Value Cost ---------------- ------------ ------------ ------------ Bond 620,842 $10.22 $ 6,345,005 $ 6,186,131 Capital 1,468,296 24.68 36,237,545 34,748,492 Cash Management 10,831,728 1.00 10,831,728 10,831,728 Common Stock 2,244,892 14.23 31,944,813 37,936,259 Communications and Information 6,724,811 14.82 99,661,699 121,510,385 Frontier 876,257 15.26 13,371,682 14,298,655 Global Growth 522,426 15.11 7,893,857 7,853,013 Global Smaller Companies 950,226 14.40 13,683,254 13,223,034 Global Technology 936,468 20.14 18,860,466 23,003,449 High-Yield Bond 1,651,698 8.73 14,419,324 17,797,815 Income 547,709 9.65 5,285,392 5,849,691 International Growth 658,207 10.65 7,009,905 8,939,178 Large-Cap Growth 460,319 10.21 4,699,857 5,355,341 Large-Cap Value 503,585 11.59 5,836,550 4,912,998 Small-Cap Value 527,989 10.58 5,586,124 4,628,235 ------------ ------------ $281,667,201 $317,074,404 ============ ============
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 $ 3,559,805 $ 2,574,861 Capital 26,985,260 17,580,338 Cash Management 62,046,904 68,032,203 Common Stock 16,010,958 24,290,840 Communications and Information 46,847,724 48,667,509 Frontier 30,624,563 36,111,826 Global Growth 6,308,041 8,075,844 Global Smaller Companies 4,037,256 6,143,971 Global Technology 23,884,042 17,956,910 High-Yield Bond 4,162,711 13,145,903 Income 964,565 3,404,124 International Growth 3,726,198 2,713,355 Large-Cap Growth 6,338,623 3,529,009 Large-Cap Value 2,986,712 3,903,729 Small-Cap Value 2,942,994 2,802,449 ------------ ------------ $241,426,356 $258,932,871 ============ ============
-- 6 -- 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, 2000 Year Ended December 31, 1999 ----------------------------- ----------------------------- Units Amount Units Amount ----------- ------------ ----------- ----------- Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 2,621,305 $45,497,732 322,587 $ 5,568,576 Terminated contracts and net transfers out (2,564,950) (44,539,206) (325,992) (5,617,403) ----------- ------------ ----------- ----------- 56,355 958,526 (3,405) (48,827) ----------- ------------ ----------- ----------- Capital Sub-Account Accumulation Units: Contract purchases and net transfers in 477,888 32,692,987 299,549 11,994,851 Terminated contracts and net transfers out (349,412) (24,522,698) (310,008) (12,447,856) ----------- ------------ ----------- ----------- 128,476 8,170,289 (10,459) (453,005) ----------- ------------ ----------- ----------- Cash Management Sub-Account Accumulation Units: Contract purchases and net transfers in 63,134,704 97,344,358 40,947,833 60,392,520 Terminated contracts and net transfers out (67,484,384) (103,958,398) (35,911,189) (52,995,977) ----------- ------------ ----------- ----------- (4,349,680) (6,614,040) 5,036,644 7,396,543 ----------- ------------ ----------- ----------- Common Stock Sub-Account Accumulation Units: Contract purchases and net transfers in 590,159 28,300,540 585,115 24,933,937 Terminated contracts and net transfers out (801,892) (37,500,821) (608,245) (26,008,996) ----------- ------------ ----------- ----------- (211,733) (9,200,281) (23,130) (1,075,059) ----------- ------------ ----------- ----------- Communications and Information Sub-Account Accumulation Units: Contract purchases and net transfers in 1,144,819 53,260,369 1,216,263 35,884,214 Terminated contracts and net transfers out (1,448,522) (66,263,529) (1,358,367) (40,216,362) ----------- ------------ ----------- ----------- (303,703) (13,003,160) (142,104) (4,332,148) ----------- ------------ ----------- ----------- Frontier Sub-Account Accumulation Units: Contract purchases and net transfers in 2,010,944 43,618,436 848,373 14,699,046 Terminated contracts and net transfers out (2,234,756) (48,849,531) (1,562,533) (26,591,919) ----------- ----------- ----------- ----------- (223,812) (5,231,095) (714,160) (11,892,873) ----------- ----------- ----------- ----------- Global Growth Sub-Account Accumulation Units: Contract purchases and net transfers in 320,516 9,407,020 514,496 7,656,906 Terminated contracts and net transfers out (394,765) (11,195,265) (560,299) (8,348,375) ----------- ----------- ----------- ----------- (74,249) (1,788,245) (45,803) (691,469) ----------- ----------- ----------- ----------- Global Smaller Companies Sub-Account Accumulation Units: Contract purchases and net transfers in 418,681 10,901,702 487,918 7,603,927 Terminated contracts and net transfers out (552,799) (13,276,125) (801,390) (12,195,283) ----------- ----------- ----------- ----------- (134,118) (2,374,423) (313,472) (4,591,356) ----------- ----------- ----------- ----------- Global Technology Sub-Account Accumulation Units: Contract purchases and net transfers in 821,302 30,111,083 1,084,404 24,282,406 Terminated contracts and net transfers out (679,459) (24,411,431) (837,452) (19,276,197) ----------- ----------- ----------- ----------- 141,843 5,699,652 246,952 5,006,209 ----------- ----------- ----------- ----------- High-Yield Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 637,844 11,585,082 1,232,239 16,959,707 Terminated contracts and net transfers out (1,329,969) (20,543,270) (1,608,165) (22,028,684) ----------- ----------- ----------- ----------- (692,125) (8,958,188) (375,926) (5,068,977) ----------- ----------- ----------- -----------
-- 7 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------
Year Ended December 31, 2000 Year Ended December 31, 1999 ----------------------------- ----------------------------- Units Amount Units Amount ----------- ------------ ----------- ----------- Income Sub-Account Accumulation Units: Contract purchases and net transfers in 156,524 $ 3,723,001 116,816 $ 2,770,238 Terminated contracts and net transfers out (260,355) (6,094,934) (170,231) (3,992,569) ----------- ------------ ----------- ------------ (103,831) (2,371,933) (53,415) (1,222,331) ----------- ------------ ----------- ------------ International Growth Sub-Account Accumulation Units: Contract purchases and net transfers in 261,515 5,865,192 192,473 3,273,321 Terminated contracts and net transfers out (227,854) (5,080,147) (285,428) (4,808,185) ----------- ------------ ----------- ------------ 33,661 785,045 (92,955) (1,534,864) ----------- ------------ ----------- ------------ Large-Cap Growth Sub-Account* Accumulation Units: Contract purchases and net transfers in 404,508 5,023,028 254,809 2,574,416 Terminated contracts and net transfers out (179,940) (2,096,301) (8,202) (88,270) ----------- ------------ ----------- ------------ 224,568 2,926,727 246,607 2,486,146 ----------- ------------ ----------- ------------ Large-Cap Value Sub-Account Accumulation Units: Contract purchases and net transfers in 462,444 6,254,372 693,579 6,974,655 Terminated contracts and net transfers out (556,213) (7,121,853) (465,548) (4,688,576) ----------- ------------ ----------- ------------ (93,769) (867,481) 228,031 2,286,079 ----------- ------------ ----------- ------------ Small-Cap Value Sub-Account Accumulation Units: Contract purchases and net transfers in 331,450 6,143,023 508,816 5,203,249 Terminated contracts and net transfers out (315,811) (5,852,775) (404,793) (4,248,022) ----------- ------------ ----------- ------------ 15,639 290,248 104,023 955,227 ----------- ------------ ----------- ------------ Net decrease from unit transactions $(31,578,359) $(12,780,705) ============ ============
- ------------ * For the period May 1, 1999 (commencement of operations) to December 31, 1999. 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 daily charge equal to an effective annual rate of 1.25% of the net asset value of each Sub-Account. In addition, an effective annual rate of 0.15% of the net asset value of each Sub-Account is deducted as daily administration fees. 7. Net Assets Net assets at December 31, 2000, consisted of the following:
Net Accumulated Net Unrealized Dividend Realized Appreciation Accumulated and Capital Gain (Loss) (Depreciation) Combined Unit M and E Gain on of Net Sub-Account Transactions Charges Distributions Investments Investments Assets - ----------- ------------ ------------ ------------- ----------- ------------ ------------ Bond $ 5,438,079 $ (325,993) $ 1,210,252 $ (136,207) $ 158,874 $ 6,345,005 Capital 19,582,097 (1,417,639) 10,858,470 5,725,564 1,489,053 36,237,545 Cash Management 8,776,160 (833,608) 2,885,639 -- -- 10,828,191 Common Stock 16,032,015 (2,393,921) 23,318,214 979,951 (5,991,446) 31,944,813 Communications and Information 40,405,176 (6,906,644) 64,267,710 23,744,143 (21,848,686) 99,661,699 Frontier 7,485,866 (1,807,915) 6,306,959 2,313,745 (926,973) 13,371,682 Global Growth 4,119,398 (387,123) 1,268,398 2,852,340 40,844 7,893,857 Global Smaller Companies 9,856,586 (1,230,291) 2,539,753 2,056,986 460,220 13,683,254 Global Technology 14,392,100 (604,138) 3,125,951 6,089,536 (4,142,983) 18,860,466 High-Yield Bond 14,150,931 (1,421,330) 8,071,481 (3,003,267) (3,378,491) 14,419,324 Income 3,236,986 (624,987) 3,471,070 (233,378) (564,299) 5,285,392 International Growth 6,311,267 (624,203) 2,461,780 790,334 (1,929,273) 7,009,905 Large-Cap Growth 5,412,873 (95,248) -- 37,716 (655,484) 4,699,857 Large-Cap Value 4,834,076 (158,633) 213,502 24,053 923,552 5,836,550 Small-Cap Value 3,339,487 (125,849) 1,079,777 334,820 957,889 5,586,124 ------------ ------------ ------------ ----------- ------------ ------------ $163,373,097 $(18,957,522) $131,078,956 $41,576,336 $(35,407,203) $281,663,664 ============ ============ ============ =========== ============ ============
8. Unit Values Unit Values as reported are calculated as total net assets divided by total units for each Sub-Account. -- 8 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Report of the 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, 2000, 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, 2000, by correspondence with the custodian. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe 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, 2000, and the results of their operations and the changes in their net assets for the periods indicated therein in conformity with accounting principles generally accepted in the United States. Ernst & Young LLP Atlanta, Georgia January 26, 2001 -- 9 -- This Page Intentionally Left Blank. Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview - -------------------------------------------------------------------------------- The following charts compare a $10,000 hypothetical investment made in Class 1 shares of each of the Portfolios of Seligman Portfolios, Inc. (with the exception of Seligman Cash Management Portfolio), for the 10-year period ended December 31, 2000, or since inception through December 31, 2000, if less than 10 years, to a $10,000 hypothetical investment made in the appropriate benchmark indices and averages for the same period. For those Portfolios that have issued Class 2 shares, the performance for Class 2 shares is not shown in the charts but is included in the tables of returns. The performances of Class 2 shares may be less than the performances of Class 1 shares, based on the difference in fees paid by shareholders and as a result of different inception dates. Accompanying each chart is a discussion of factors that affected the Portfolio during the past year. The charts and total returns do not reflect any fees or charges that investors will incur in purchasing or selling units of the Variable Accounts. Seligman Bond Portfolio Seligman Lehman Bros. Lipper Corporate Debt Date Bond Portfolio Government Bond Index BBB-Rated Funds Average 12/31/90 $10,000 $10,000 $10,000 3/31/91 $10,233 $10,217 $10,402 6/30/91 $10,378 $10,355 $10,614 9/30/91 $10,921 $10,945 $11,256 12/31/91 $11,458 $11,532 $11,846 3/31/92 $11,260 $11,330 $11,818 6/30/92 $11,572 $11,779 $12,292 9/30/92 $12,083 $12,361 $12,898 12/31/92 $12,099 $12,365 $12,920 3/31/93 $12,485 $12,924 $13,637 6/30/93 $12,769 $13,298 $14,142 9/30/93 $13,086 $13,730 $14,669 12/31/93 $13,065 $13,683 $14,768 3/31/94 $12,690 $13,272 $14,229 6/30/94 $12,548 $13,120 $13,914 9/30/94 $12,651 $13,175 $14,029 12/31/94 $12,622 $13,221 $14,005 3/31/95 $13,058 $13,844 $14,664 6/30/95 $13,956 $14,703 $15,781 9/30/95 $14,242 $14,963 $16,177 12/31/95 $15,043 $15,647 $16,956 3/31/96 $14,539 $15,293 $16,587 6/30/96 $14,481 $15,366 $16,680 9/30/96 $14,625 $15,625 $17,063 12/31/96 $15,057 $16,081 $17,715 3/31/97 $14,951 $15,951 $17,608 6/30/97 $15,438 $16,504 $18,344 9/30/97 $15,925 $17,057 $19,059 12/31/97 $16,410 $17,623 $19,532 3/31/98 $16,570 $17,889 $19,881 6/30/98 $17,035 $18,362 $20,273 9/30/98 $17,804 $19,377 $20,585 12/31/98 $17,756 $19,361 $20,730 3/31/99 $17,328 $19,085 $20,632 6/30/99 $16,986 $18,922 $20,357 9/30/99 $17,038 $19,047 $20,360 12/31/99 $17,070 $18,927 $20,364 3/31/2000 $17,308 $19,561 $20,735 6/30/2000 $17,564 $19,868 $20,813 9/30/2000 $18,040 $20,415 $21,360 12/31/2000 $18,698 $21,434 $21,985 Average Annual Total Returns+ One Yr. Five Yrs. Ten Yrs. ------- --------- -------- Seligman Bond Portfolio-Class 1 10.25% 4.45% 6.46% Lehman Brothers Government Bond Index 13.24 6.49 7.92 Lipper Corporate Debt BBB-Rated Funds Average 7.96 5.33 8.20 Over the past year and a half, the Federal Reserve Board's series of interest rate hikes had pushed short-term rates higher. Yields for long-term government bonds, however, fell in spite of the Fed's actions, making these bonds one of the best-performing asset classes of 2000, outpacing both domestic stocks and corporate bonds. The primary reason for this outperformance was the substantial decrease in the issuance of new Treasury debt. The growing US budget surplus allowed the government to borrow less money through new bond issuance and even to buy back outstanding bonds. While supply was falling, demand was increasing as a result of the heightened risk aversion adopted by investors in 2000, as they moved away from technology stocks and sought safer harbors. US government bonds were a clear choice for many such investors. Demand for long-term bonds was so great that their yields actually fell below those of shorter-term securities. During this period, we kept the Portfolio's duration slightly shorter than that of its benchmark. Since longer-term government bonds offered such low relative yields, we pursued the generally higher yields that were available on shorter-term bonds. Our outlook for long-term-US government bonds is positive. Over the coming year, the growing US budget surplus should continue to allow the government to reduce the size and frequency of new debt issuance and buy back more bonds. The Fed surprised markets on January 3, 2001 with a 50-basis point reduction in the federal funds rate, then cut rates by another 50 basis points on January 31. We expect additional rate cuts in 2001, an atmosphere which should benefit Seligman Bond Portfolio. Seligman Capital Portfolio Seligman Russell MidCap Lipper Multi Cap Date Capital Portfolio Growth Index Growth Funds Average 12/31/90 $10,000 $10,000 $10,000 3/31/91 $11,986 $12,308 $12,265 6/30/91 $12,146 $12,117 $12,099 9/30/91 $13,624 $13,111 $13,429 12/31/91 $15,905 $14,704 $14,973 3/31/92 $14,847 $14,255 $14,757 6/30/92 $13,753 $13,592 $13,842 9/30/92 $14,802 $14,320 $14,268 12/31/92 $16,986 $15,984 $16,254 3/31/93 $17,546 $16,127 $16,417 6/30/93 $17,236 $16,129 $16,935 9/30/93 $18,376 $17,216 $18,266 12/31/93 $18,965 $17,772 $18,582 3/31/94 $18,369 $17,221 $17,892 6/30/94 $16,757 $16,464 $16,873 9/30/94 $18,280 $17,632 $18,254 12/31/94 $18,094 $17,387 $18,196 3/31/95 $19,219 $19,267 $19,471 6/30/95 $20,373 $20,814 $21,520 9/30/95 $22,211 $22,864 $24,020 12/31/95 $23,010 $23,294 $24,545 3/31/96 $24,553 $24,797 $26,010 6/30/96 $26,235 $25,724 $27,626 9/30/96 $26,868 $26,599 $28,494 12/31/96 $26,349 $27,367 $28,933 3/31/97 $25,296 $26,368 $27,102 6/30/97 $28,752 $30,250 $31,475 9/30/97 $32,126 $34,482 $36,077 12/31/97 $31,964 $33,534 $34,581 3/31/98 $35,531 $37,538 $39,168 6/30/98 $36,414 $37,516 $39,764 9/30/98 $29,385 $31,254 $33,784 12/31/98 $39,056 $39,527 $42,808 3/31/99 $37,873 $40,879 $45,521 6/30/99 $42,284 $45,139 $49,652 9/30/99 $41,364 $42,877 $49,331 12/31/99 $59,885 $59,801 $69,426 3/31/2000 $72,613 $72,431 $80,028 6/30/2000 $77,048 $67,064 $75,403 9/30/2000 $87,221 $68,754 $78,109 12/31/2000 $64,975 $52,769 $62,241 Average Annual Total Returns+ -------------------------------- Since Inception One Five Ten 8/30/00* Year Years Years -------------------------------- Seligman Capital Portfolio: Class 1....... n/a 8.50% 23.07% 20.58% Class 2....... (22.15)% n/a n/a n/a Lipper Multi Cap Growth Funds Average. (23.78)** (10.35) 20.45 20.06 Russell Midcap Growth Index (27.00)** (11.75) 17.77 18.10 * Not annualized. ** From August 31, 2000. As the year began, the economy continued to grow strongly, despite several interest-rate increases by the Federal Reserve Board, prompting investors to fear more aggressive action from the Fed. At the same time, energy prices were soaring, which, - -------------- 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-10. -- P-1 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- Seligman Capital Portfolio (continued) together with higher interest rates, adversely affected corporate profits. This uncertain environment affected growth stocks, particularly technology stocks, to the greatest degree, as evidenced by the 54% peak-to-trough decline of the technology-heavy Nasdaq Composite Index in 2000. Mid-cap growth stocks held up somewhat better than large-cap growth stocks, but experienced a great deal of volatility over the course of the year, as the US economy slowed more quickly than most had expected. The Portfolio was slightly overweighted in health care during 2000, which typically performs well in an economic slowdown, and that overweighting helped overall performance. The Portfolio's overweighting in finance also helped, and individual stock selection in this sector proved important. Aided by the opportunities created by deregulation, the Portfolio's exposure to utilities also positively affected performance. Not surprisingly, technology, which represents more than one-half of the Portfolio's total assets, hurt performance. However, the Portfolio reduced its weighting in business-to-business Internet stocks during the middle of the year, which enabled us to avoid significant losses. Going forward, we plan to begin underweighting health care and utilities, while continuing to emphasize the consumer area, and retaining our overweighting in financials; this last group should benefit in 2001 from falling interest rates. Technology will remain a substantial portion of the Portfolio. Now that the economy has slowed and some of the excesses have been taken out of the market, we believe the economy is poised for eventual moderate acceleration. The Fed's interest rate cuts on January 3 and January 31 gave the market some much-needed confidence that the Fed will act to keep the economy growing. However, until it becomes clear that the economy will indeed be able to avoid recession, investors are likely to remain cautious. We, therefore, see the first half of 2001 as a buying opportunity, and believe that much of the year's gains will come during the second half of the year. 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. Seligman Lipper Growth & Income Date Common Portfolio Funds Average S&P 500 12/31/90 $10,000 $10,000 $10,000 3/31/91 $11,788 $11,293 $11,453 6/30/91 $11,675 $11,401 $11,427 9/30/91 $12,487 $12,109 $12,038 12/31/91 $13,316 $12,783 $13,047 3/31/92 $13,569 $12,841 $12,717 6/30/92 $13,461 $13,187 $12,958 9/30/92 $14,012 $13,542 $13,366 12/31/92 $14,932 $14,125 $14,039 3/31/93 $15,468 $15,054 $14,652 6/30/93 $15,631 $15,255 $14,724 9/30/93 $16,023 $15,883 $15,104 12/31/93 $16,715 $16,125 $15,454 3/31/94 $16,034 $15,546 $14,869 6/30/94 $16,313 $15,703 $14,931 9/30/94 $16,737 $16,322 $15,661 12/31/94 $16,722 $15,975 $15,658 3/31/95 $17,923 $17,265 $17,183 6/30/95 $19,052 $18,415 $18,824 9/30/95 $20,241 $19,689 $20,321 12/31/95 $21,283 $20,901 $21,544 3/31/96 $22,744 $21,860 $22,701 6/30/96 $23,778 $22,464 $23,720 9/30/96 $24,233 $23,024 $24,453 12/31/96 $25,556 $24,748 $26,493 3/31/97 $25,845 $25,225 $27,203 6/30/97 $29,136 $28,478 $31,952 9/30/97 $31,335 $30,861 $34,345 12/31/97 $31,003 $31,685 $35,332 3/31/98 $34,583 $34,903 $40,261 6/30/98 $35,078 $34,496 $41,589 9/30/98 $32,317 $31,051 $37,451 12/31/98 $38,492 $35,138 $45,428 3/31/99 $39,421 $34,896 $47,690 6/30/99 $42,603 $38,237 $51,053 9/30/99 $39,256 $34,933 $47,862 12/31/99 $43,552 $36,358 $54,984 3/31/2000 $39,907 $36,017 $56,243 6/30/2000 $43,447 $35,624 $54,747 9/30/2000 $42,949 $37,759 $54,216 12/31/2000 $38,967 $38,757 $49,976 Average Annual Total Returns+ One Yr. Five Yrs. Ten Yrs. ------- --------- -------- Seligman Common Stock Portfolio-Class 1 (10.53)% 12.86% 14.57% Lipper Equity Income Funds Average 6.40 13.15 14.51 S&P 500 (9.11) 18.33 17.46 The Federal Reserve Board's interest rate increases ultimately succeeded in slowing the US economy, which began to decelerate rapidly in the third quarter of 2000. High borrowing costs and soaring energy prices negatively impacted corporate profits, while many companies' earnings fell short of investor expectations. Manufacturing output fell sharply. The Fed responded by cutting interest rates 0.5% on January 3, 2001, then by another 0.5% on January 31. These moves have helped to steady the markets. Market volatility was pronounced in 2000, especially among technology and other stocks which had dominated the market in 1999. The technology-heavy Nasdaq Composite Index ended the year down 39.26%, and the S&P 500 declined by 9.11%. Investors worried about the ability of companies to continue growing in an environment of higher interest rates and a slowing economic expansion. "Old economy" stocks performed very well in 2000, and the Portfolio's overweightings in finance, energy, health care, and utilities were all positive contributors to performance. The Portfolio's focus on natural gas over electricity also helped our results. The Portfolio's exposure to technology clearly detracted from performance in 2000, but we believe that technology will produce the biggest growth areas over the long term. The Portfolio has repositioned itself to focus more on capital appreciation. This hurt performance in 2000, but we expect that shareholders will benefit over the long term in the form of higher total returns. We expect the first two quarters of 2001 to be marked by continued volatility and weak corporate profits. The Fed has already cut rates and will likely do so again, and this should help market sentiment and move the economy toward a resumption of growth in the second half of 2001. The Portfolio is positioning itself to take advantage of this expected economic upturn by focusing on early-cycle stocks, such as semiconductors, retailers, and media stocks, which typically perform well as the economy emerges from a slowdown. We believe that the excess speculation in the markets has finally diminished, and that investors have returned to fundamentals, a development that can only serve to benefit Seligman Common Stock Portfolio. - --------------- 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-10. -- P-2 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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. Seligman Lipper Science & H&Q Technology Date C&I Portfolio Technology Funds Average S&P 500 Funds Index 10/11/94 $10,000 $10,000 $10,000 $10,000 12/31/94 $10,440 $10,625 $ 9,998 $11,095 3/31/95 $11,030 $11,463 $10,972 $12,414 6/30/95 $14,690 $13,903 $12,020 $15,474 9/30/95 $16,950 $15,914 $12,975 $17,478 12/31/95 $14,464 $15,231 $13,756 $16,541 3/31/96 $13,618 $15,508 $14,495 $16,851 6/30/96 $13,993 $16,706 $15,146 $18,040 9/30/96 $15,139 $17,935 $15,614 $19,139 12/31/96 $15,739 $18,779 $16,916 $20,513 3/31/97 $14,271 $16,954 $17,369 $19,543 6/30/97 $16,961 $20,074 $20,402 $23,512 9/30/97 $22,018 $23,821 $21,930 $28,485 12/31/97 $19,237 $20,983 $22,560 $23,996 3/31/98 $22,103 $24,668 $25,707 $29,054 6/30/98 $21,765 $25,656 $26,555 $29,740 9/30/98 $18,105 $22,906 $23,913 $26,424 12/31/98 $26,256 $32,401 $29,007 $37,289 3/31/99 $26,715 $38,212 $30,451 $40,597 6/30/99 $31,755 $43,557 $32,598 $48,066 9/30/99 $33,624 $46,881 $30,561 $50,797 12/31/99 $48,787 $76,534 $35,108 $83,124 3/31/2000 $56,991 $91,139 $35,912 $93,755 6/30/2000 $51,144 $81,707 $34,957 $84,051 9/30/2000 $43,250 $80,556 $34,618 $82,513 12/31/2000 $31,133 $51,130 $31,911 $53,601 Average Annual Total Returns+ Class 2 Class 1 Since Since Inception One Five Inception 5/1/00* Yr. Yrs. 10/11/94 ----------------------------------- Seligman Communications and Information Portfolio: Class 1 n/a (36.19)% 16.57% 20.01% Class 2 (44.40)% n/a n/a n/a H&Q Technology Funds Index (35.91)** (35.52) 26.51 30.81++ Lipper Science & Technology Funds Average (35.82)** (33.19) 27.41 29.79++ S&P 500 Index (8.38)** (9.11) 18.33 20.40++ * Not annualized. ** From April 30, 2000. ++ From September 30, 1994. The year 2000 was a discouraging one for technology investors. After returning a record-breaking 86% in 1999, the Nasdaq Composite Index (a technology-heavy stock index) delivered its worst-ever performance in 2000, with a loss of 39%. This correction occurred due to a confluence of events. Since June 1999, the Federal Reserve Board had been moving toward a tighter monetary policy. As credit contracted, liquidity was drained from the market. High-tech start-ups, which had easily found financing in 1998 and 1999, were suddenly faced with less-forgiving credit and capital markets. As these companies faltered, investor confidence wavered, and even companies with strong fundamentals were cast aside. We believe, however, that the Fed's recent rate cuts should improve the investment environment for technology. While no area of technology was spared the effects of this correction, the Portfolio fortunately had almost no exposure to the Internet sector, one of the worst-hit areas. We had maintained for some time that many of these companies were highly speculative due to their lack of earnings and the inability to predict future earnings. In 1999, our decision to exclude this group hurt the Portfolio's returns, but in 2000, we were gratified that we maintained our standards for evaluating securities for the Portfolio. At year-end, the Portfolio's largest industry weighting was semiconductors, and its third largest was electronics capital equipment. For the first eight months of the year, stocks in these sectors held up well, and these large weightings benefited performance. However, in September, these stocks declined significantly, and the Portfolio's heavy exposure to these areas hurt overall performance for the year. The Portfolio also suffered from its exposure to consulting and information services companies. When dot-com companies faltered, this sector declined with them because so many of their customers are dot-coms. Looking ahead, over the short term, we think the economy will continue to moderate. We believe that Seligman Communications and Information Portfolio, which builds its portfolio based on fundamental factors such as earnings and cash flow, should do well in a more moderate economic growth environment. Seligman Frontier 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.
Seligman Date Frontier Portfolio Russell 2000 Growth Index Russell 2000 Index Lipper Small Cap Growth Funds Average 10/11/94 $10,000 $10,000 $10,000 $10,000 12/31/94 $10,580 $ 9,926 $ 9,813 $10,036 3/31/95 $11,300 $10,470 $10,265 $10,660 6/30/95 $12,260 $11,509 $11,227 $11,680 9/30/95 $13,780 $12,817 $12,336 $13,253 12/31/95 $14,101 $13,007 $12,604 $13,598 3/31/96 $15,443 $13,753 $13,247 $14,608 6/30/96 $17,065 $14,557 $13,909 $16,006 9/30/96 $17,731 $14,433 $13,957 $16,280 12/31/96 $17,476 $14,470 $14,682 $16,204 3/31/97 $15,855 $12,952 $13,923 $14,575 6/30/97 $19,203 $15,226 $16,180 $17,306 9/30/97 $21,455 $17,802 $18,588 $20,335 12/31/97 $20,331 $16,343 $17,965 $19,024 3/31/98 $22,650 $18,284 $19,773 $21,453 6/30/98 $22,044 $17,235 $18,851 $20,639 9/30/98 $16,839 $13,381 $15,053 $16,224 12/31/98 $20,034 $16,544 $17,508 $20,330 3/31/99 $16,324 $16,267 $16,559 $19,704 6/30/99 $18,823 $18,666 $19,134 $22,749 9/30/99 $18,115 $17,747 $17,925 $23,017 12/31/99 $23,358 $23,673 $21,232 $32,268 3/31/2000 $25,213 $25,870 $22,735 $37,863 6/30/2000 $24,312 $23,964 $21,876 $36,199 9/30/2000 $23,255 $23,012 $22,118 $36,274 12/31/2000 $19,661 $18,364 $20,590 $30,381
Average Annual Total Returns+ Since One Yr. Five Yrs. Inception ------- --------- --------- Seligman Frontier Portfolio-Class 1 (15.83)% 6.87% 11.47% Lipper Small Cap Growth Funds Average (5.85) 17.44 19.43* Russell 2000 Growth Index (22.43) 7.14 10.22* Russell 2000 Index (3.02) 10.31 12.25* *From September 30, 1994. For most of 2000, small-cap growth stocks suffered from the general uncertainty that has plagued investors since the major correction in the Nasdaq Composite Index in March. Technology stocks suffered most in this environment, as investors worried that these companies could not continue to grow in a slowing economy with higher borrowing costs. In 2000, Seligman Frontier Portfolio increased its emphasis on growth. As a result, approximately 65% of the Portfolio's assets now consists of technology, health - -------------- 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-10. -- P-3 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- Seligman Frontier Portfolio (continued) care, and telecommunications companies. Despite a difficult year for technology and telecom, we believe that these sectors still contain a great number of dynamic companies that are growing quickly and have substantial momentum in their businesses. We are cautious, however, and think that our main challenge will be to continue to pick individual stocks wisely. We added to the software sector in order to participate in the growth of the Internet without investing in pure dot-com companies, which are more risky. We favor software companies that help other companies utilize the Internet as a business tool. Within telecommunications, our focus is on the wireless services area. We feel positive about wireless because of the great potential of the wireless Web; we think this service will prove very popular, and it should be a source of increased revenue for companies already offering wireless phone service. Our health care holdings performed strongly this year. We are still optimistic about this sector. Given the two recent rate cuts by the Federal Reserve Board, we are enthusiastic about the small-cap sector in 2001. We believe it is positioned for success because small-cap earnings have been growing quickly, and because small-cap valuations are quite compelling relative to large-cap stocks. We expect the US economy to pick up steam again in the second half of 2001, providing a nurturing environment for dynamic companies with strong management and earnings momentum. 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.
Seligman Global Growth Date Opportunities Portfolio Lipper Global Funds Avg. MSCI World Index 5/1/96 $10,000 $10,000 $10,000 6/30/96 $10,010 $10,125 $10,062 9/30/96 $ 9,810 $10,245 $10,207 12/31/96 $ 9,922 $10,740 $10,687 3/31/97 $10,022 $10,830 $10,730 6/30/97 $11,274 $12,169 $12,357 9/30/97 $11,694 $12,823 $12,723 12/31/97 $11,169 $12,200 $12,422 3/31/98 $13,022 $13,885 $14,214 6/30/98 $13,326 $13,974 $14,515 9/30/98 $11,422 $11,920 $12,788 12/31/98 $13,581 $14,063 $15,502 3/31/99 $14,366 $14,460 $16,068 6/30/99 $15,527 $15,569 $16,849 9/30/99 $15,965 $15,414 $16,612 12/31/99 $20,710 $19,107 $19,430 3/31/2000 $21,869 $19,918 $19,641 6/30/2000 $20,130 $18,972 $18,958 9/30/2000 $20,835 $18,403 $18,019 12/31/2000 $17,442 $17,081 $16,918
Average Annual Total Returns+ Since One Yr. Inception ------- --------- Seligman Global Growth Portfolio-Class 1 (15.78)% 12.65% Lipper Global Funds Average (10.61) 12.14* MSCI World Index (12.92) 11.93* *From April 30, 1996. The past year proved challenging for Seligman Global Growth Portfolio, as stock market returns in the US and abroad have been, for the most part, weak. Growth and technology stocks suffered in 2000 after the technology-heavy Nasdaq Composite Index fell precipitously beginning in March. The Nasdaq Index finished the year down almost 40%. The US economy slowed appreciably in 2000, with GDP growth, corporate earnings, and stock prices for many companies experiencing major declines. GDP growth in the fourth quarter was the slowest in five years. However, even during this volatile year, the Portfolio's performance was helped by strategic sector weightings in optical equipment and specialty pharmaceuticals. The Portfolio currently dedicates about two-thirds of its assets to overseas companies, predominantly in Continental Europe, while maintaining an underweighted position in the United States. We strive to identify companies that compare favorably on a global basis, not just within their own countries. We feel very positive about Europe because of strong growth in the region, stable inflation, good current account balances, and less trade dependence than the UK on the slowing US economy. The euro has been weak versus the dollar since its introduction two years ago, and this negatively impacted the Portfolio's performance. However, the euro rallied 12% over the last five weeks of 2000. We believe the currency will continue to strengthen on the basis of Europe's fundamentals and growing investor confidence in the euro's viability. The health care component of the Portfolio added significantly to performance in 2000. We focused our attention on large-cap and specialty pharmaceutical stocks, which include several high-quality companies growing at a rapid pace. Another theme within the health care sector, which will play an increasing role in the Portfolio, is biotechnology. This is an exciting area because of the mapping of human genomes and the flood of new biotech products on the market. We are focusing on the companies with what we believe are the best product pipelines. We think PDAs (Personal Digital Assistants) are poised for growth on the consumer side. Consumers are in the early adoption cycle for these products, and market penetration is currently very low, providing a tremendous opportunity. The Portfolio owns stock in both the hardware and software companies associated with this area. Growth has clearly slowed, both in the US and abroad, but we do not expect it to stop. Global productivity gains are helping companies to stay competitive, and inflation is in check. While we do expect companies to scale back their capital expen- - ------------------ 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-10. -- P-4 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Seligman Global Growth Portfolio (continued) ditures and consumer spending to abate somewhat, we think the economy will reaccelerate in the second half of 2001, helped by the Federal Reserve's willingness to cut interest rates (two 0.5% cuts in January 2001) and by a likely across-the-board federal tax cut. 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.
Seligman Date Global Smaller Companies Portfolio Lipper Global Small Cap Funds Avg. Salomon Bros World EM Index 10/11/94 $10,000 $10,000 $10,000 12/31/94 $10,353 $ 9,649 $ 9,724 3/31/95 $10,594 $ 9,585 $ 9,997 6/30/95 $10,886 $10,373 $10,404 9/30/95 $11,860 $11,322 $11,110 12/31/95 $12,152 $11,333 $11,352 3/31/96 $13,246 $12,134 $11,969 6/30/96 $14,589 $12,916 $12,460 9/30/96 $14,464 $12,818 $12,459 12/31/96 $14,421 $13,098 $12,774 3/31/97 $14,196 $12,892 $12,396 6/30/97 $15,810 $14,253 $13,793 9/30/97 $16,023 $14,984 $14,658 12/31/97 $14,915 $13,727 $13,844 3/31/98 $17,260 $15,635 $15,649 6/30/98 $17,329 $15,348 $15,285 9/30/98 $14,433 $12,162 $12,651 12/31/98 $15,897 $13,977 $14,665 3/31/99 $14,531 $13,909 $14,306 6/30/99 $16,235 $15,657 $15,857 9/30/99 $16,971 $15,924 $15,560 12/31/99 $20,402 $20,981 $17,947 3/31/2000 $22,445 $23,815 $19,324 6/30/2000 $20,857 $22,046 $18,775 9/30/2000 $20,192 $21,792 $18,769 12/31/2000 $17,418 $19,322 $17,538
Average Annual Total Returns+ Since One Yr. Five Yrs. Inception ------- --------- --------- Seligman Global Smaller Companies Portfolio-Class 1 (14.63)% 7.46% 9.32% Lipper Global Small Cap Funds Average (7.91) 11.26 11.10* Salomon Smith Barney EM Index World (2.28) 9.09 9.40* *From September 30, 1994. There was tremendous turmoil in equity markets during the past year, as the US economy slowed dramatically toward year-end. It was a difficult year for technology in particular, as the technology-heavy Nasdaq Composite Index suffered a major correction in March. While markets stabilized over the summer, concerns about corporate growth and profitability and higher interest rates emerged again in the third and fourth quarters. A number of high-profile profit warnings caused the technology sector to fall further as investors became more risk-averse. The Portfolio's performance this year was negatively impacted by continued sharp declines in the prices of technology stocks. The euro continued to weaken against a strong US dollar, despite interventions by the European Central Bank and other world banks, although it rebounded toward the end of 2000. The Portfolio did not change its asset allocation significantly during the period under review. We continued to focus on stocks with visible earnings growth, credible products, and solid management teams. Compared with its benchmark, the Portfolio is slightly underweighted in the US, slightly overweighted in Europe and the Pacific, and neutral in Japan. The US represents roughly one-half of the Portfolio's assets. We have added to the software sector in order to participate in the growth of the Internet without investing in pure dot-com companies, which are more risky and which experienced many problems in 2000. The Portfolio's software companies help other companies do business over the Web and better utilize the Web as a business tool. We believe that the Internet is now an integral component of the US economy, despite this year's volatility in technology stocks and despite cooling economic growth. We have also continued to add to the Portfolio's telecommunications holdings, with our focus remaining on the wireless services area, which has grown rapidly and should continue to grow. The Fund's UK holdings are concentrated in computer software and business services, two sectors which we expect will see continued earnings growth. Continental Europe continues to boast a number of dynamic and rapidly-growing companies, and it represents more than 20% of the Portfolio. The euro, which has been weak against the US dollar since its introduction two years ago, has strengthened, rallying 12% in the final five weeks of 2000, as investors were lured back to Europe by its compelling valuations and attractive economic fundamentals. The Portfolio's third largest country weighting (following the US and the UK, respectively) was Japan. While Japanese stocks have not performed well in recent years, we believe its economy will improve. In Japan, we reduced our exposure to manufacturing and cyclical stocks, and increased our weighting in the service sectors. We believe the Japanese economy will shift from being manufacturing-driven to consumer-driven, and, as it does, we expect this reallocation to be rewarded. Additionally, we expect economic growth in China will continue to strengthen, boosting the Portfolio's Pacific holdings. While we feel the current stock market weakness could continue, we expect markets will recover some of the ground that was lost in 2000, helped by the Federal Reserve Board's recent rate reductions. We think that central banks around the world will follow the Fed's lead. We remain enthusiastic about small-cap stocks for a number of reasons. The slower earnings growth expected for large-cap stocks will serve to highlight the better earnings outlook for small-cap stocks. Further, valuations of small-cap stocks remain quite compelling. In Europe and the UK, we believe the structural case for small-caps remains unchanged. The economic cycle continues to be favorable in Europe, and the valuations of small-caps there remain lower than those of large-caps. New issues could provide some attractive opportunities as market sentiment improves. - ------------------ 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-10. -- P-5 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- 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.
Seligman Global Lipper Science & Date Technology Portfolio Lipper Global Funds Avg. Technology Funds Avg. MSCI World Index H&Q Technology Index 5/1/96 $10,000 $10,000 $10,000 $10,000 $10,000 6/30/96 $ 9,860 $10,125 $ 9,702 $10,062 $ 9,407 9/30/96 $ 9,970 $10,245 $10,416 $10,207 $ 9,980 12/31/96 $10,401 $10,740 $10,906 $10,687 $10,697 3/31/97 $ 9,957 $10,830 $ 9,846 $10,730 $10,191 6/30/97 $11,328 $12,169 $11,658 $12,357 $12,260 9/30/97 $13,525 $12,823 $13,834 $12,723 $14,853 12/31/97 $12,432 $12,200 $12,186 $12,422 $12,512 3/31/98 $14,803 $13,885 $14,326 $14,214 $15,150 6/30/98 $15,108 $13,974 $14,900 $14,515 $15,508 9/30/98 $12,761 $11,920 $13,303 $12,788 $13,779 12/31/98 $17,007 $14,063 $18,817 $15,502 $19,444 3/31/99 $17,928 $14,460 $22,192 $16,068 $21,169 6/30/99 $21,464 $15,569 $25,296 $16,849 $25,064 9/30/99 $23,724 $15,414 $27,226 $16,612 $26,488 12/31/99 $37,211 $19,107 $44,448 $19,430 $43,345 3/31/2000 $43,875 $19,918 $52,930 $19,641 $48,888 6/30/2000 $39,356 $18,972 $47,452 $18,958 $43,828 9/30/2000 $35,556 $18,403 $46,784 $18,019 $43,026 12/31/2000 $28,375 $17,081 $29,694 $16,918 $27,950
Average Annual Total Returns+ Class 2 Class 1 Since Since Inception One Inception 5/1/00* Yr. 5/1/96 ---------------------------- Seligman Global Technology Portfolio: Class 1 n/a (23.75)% 25.02% Class 2 (25.99)% n/a n/a H&Q Technology Index (35.91)** (35.52) 24.64++ Lipper Global Funds Average (9.08)** (10.61) 12.14++ Lipper Science & Technology Funds Average (35.82)** (33.19) 26.22++ MSCI World Index (10.07)** (12.92) 11.93++ * Not annualized. ** From April 30, 2000. ++ From April 30, 1996. Technology stocks experienced a setback in March 2000, with a major correction in the Nasdaq Composite Index leading to a record 54% peak-to-trough plunge by year-end. Investors worried about the ability of tech companies to continue to grow in an atmosphere of higher interest rates and slowing growth. We believe that valuations and expectations are now at realistic levels, a trend that should be positive for technology as the US economy reaccelerates in the second half of 2001, something we think is likely. We favor companies offering key software and services that enable other companies to harness the potential of the Internet, thereby making them more productive and capital-efficient. We expect capital spending to slow in the first half of 2001, but we think businesses will still purchase software and services to optimize the capital they have already invested. Within this theme, the Portfolio focuses on companies with proprietary technology, strong market share and profitability, and rapid growth. The Portfolio was overweighted in US technology stocks, continuing to stay focused on software and services and semiconductors, while being cautious about telecommunications. The weakness of the euro in 2000 hurt the Portfolio's performance, since almost one-third of its investments are euro-denominated. This translation effect was also felt by US technology companies with European operations, whose earnings were negatively impacted. However, currency and interest rate fluctuations are starting to moderate, and the euro has regained some of its value compared to the US dollar. The Portfolio is currently underweighted in Continental Europe and the UK because growth in those countries has been slower than expected. Our outlook for global technology is cautiously optimistic. We are concerned about a slowdown in capital spending and how it would impact the technology sector, but, overall, we think there are still many areas of accelerating growth where valuations have become much more attractive. Our focus will remain on good stock selection. 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. Seligman High-Yield Merrill Lynch High Current Yield Date Bond Portfolio High-Yield Master Index Funds Avg. 5/1/95 $10,000 $10,000 $10,000 6/30/95 $10,030 $10,391 $10,257 9/30/95 $10,300 $10,694 $10,578 12/31/95 $10,737 $11,049 $10,893 3/31/96 $11,126 $11,211 $11,199 6/30/96 $11,341 $11,364 $11,421 9/30/96 $11,872 $11,808 $11,956 12/31/96 $12,307 $12,272 $12,388 3/31/97 $12,252 $12,400 $12,480 6/30/97 $13,022 $12,990 $13,151 9/30/97 $13,824 $13,497 $13,856 12/31/97 $14,164 $13,846 $14,057 3/31/98 $14,820 $14,232 $14,660 6/30/98 $14,987 $14,471 $14,723 9/30/98 $13,925 $13,953 $13,643 12/31/98 $14,309 $14,354 $14,031 3/31/99 $14,506 $14,510 $14,437 6/30/99 $14,335 $14,607 $14,547 9/30/99 $13,914 $14,424 $14,318 12/31/99 $14,201 $14,579 $14,683 3/31/2000 $13,920 $14,316 $14,486 6/30/2000 $13,920 $14,406 $14,445 9/30/2000 $13,846 $14,602 $14,324 12/31/2000 $12,934 $14,028 $13,414 Average Annual Total Returns+ Since One Yr. Five Yrs. Inception ------- --------- --------- Seligman High-Yield Bond Portfolio-Class 1 (8.93)% 3.79% 4.64% Lipper High Current Yield (8.64) 4.25 5.31* Merrill Lynch High Yield Master Index (3.79) 4.89 6.15* *From April 30, 1995. Tight monetary policy during the first half of 2000 negatively impacted returns, but kept inflation at bay. However, the Federal Reserve's bias toward tightening also led to a slowing of growth; this, in turn, increased many high-yield investors' fear of defaults. October and November of 2000 were among the worst months in the high-yield market since 1991. The market rebounded in December 2000 in anticipation of easing by the Fed, and in reaction to the long-awaited resolution of the US presidential contest. - ------------------ 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-10. -- P-6 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Seligman High-Yield Bond Portfolio (continued) The flight to quality in 2000 was evidenced by the more than $10 billion in outflows from high-yield mutual funds. These outflows, combined with a reduced, but still active, new issue market, created a supply-and-demand imbalance. The past year was a buyer's market, leading to lower bond prices and higher yield spreads between high-yield bonds and US Treasury bonds of similar maturities. We believe that these yield spreads (the highest in a decade) represent a compelling investment opportunity for high-yield investors. We continued to build the Portfolio's core holdings, with our primary focus being on cable television, communications infrastructure, printing and publishing, telecommunications, and wireless telephony. We reduced our exposure to the increasingly unpredictable consumer sector, and also reduced our exposure to the Internet. We increased our exposure to utilities, communications infrastructure, and interest-rate sensitive securities. The sectors we are focusing on right now are growth areas such as telecommunications and media companies. Given the current economic downturn, we are avoiding the deep cyclicals, such as paper and automotive suppliers. We are very enthusiastic about the opportunities currently available in the high-yield bond market. Yield spreads are nearly double their historical averages. The Fed's current bias toward easing credit should lift most fixed income products. High-yield bonds could potentially benefit the most from lower rates, because investors are unlikely to be satisfied if short-term rates fall to 4.5% or less; they will likely look to the high-yield bond market for higher return potential. Also significant for the high-yield market, the Fed's stimulation of the economy through increased money supply should boost the cash flow of many high-yield issuers, increasing their attractiveness to investors. 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. Seligman Lehman Bros. Lipper Income Date Income Portfolio Aggregate Bond Index Funds Average S&P 500 12/31/2090 $10,000 $10,000 $10,000 $10,000 3/31/91 $11,126 $10,280 $10,946 $11,453 6/30/91 $11,589 $10,447 $11,052 $11,427 9/30/91 $12,537 $11,040 $11,837 $12,038 12/31/91 $13,089 $11,600 $12,525 $13,047 3/31/92 $13,264 $11,451 $12,554 $12,717 6/30/92 $13,962 $11,914 $12,954 $12,958 9/30/92 $14,474 $12,426 $13,424 $13,366 12/31/92 $15,146 $12,460 $13,747 $14,039 3/31/93 $15,971 $12,974 $14,571 $14,652 6/30/93 $16,410 $13,318 $14,899 $14,724 9/30/93 $16,902 $13,666 $15,433 $15,104 12/31/93 $17,020 $13,674 $15,586 $15,454 3/31/94 $16,302 $13,281 $15,004 $14,869 6/30/94 $15,808 $13,145 $14,946 $14,931 9/30/94 $16,347 $13,225 $15,321 $15,661 12/31/94 $16,005 $13,275 $15,049 $15,658 3/31/95 $16,583 $13,944 $15,963 $17,183 6/30/95 $17,707 $14,793 $16,987 $18,824 9/30/95 $18,750 $15,083 $17,821 $20,321 12/31/95 $18,882 $15,726 $18,576 $21,544 3/31/96 $19,115 $15,447 $18,957 $22,701 6/30/96 $19,365 $15,535 $19,316 $23,720 9/30/96 $19,526 $15,823 $19,699 $24,453 12/31/96 $20,139 $16,298 $20,666 $26,493 3/31/97 $20,254 $16,206 $20,753 $27,203 6/30/97 $21,575 $16,801 $22,306 $31,952 9/30/97 $22,628 $17,359 $23,584 $34,345 12/31/97 $22,963 $17,869 $23,993 $35,332 3/31/98 $24,260 $18,148 $25,276 $40,261 6/30/98 $24,260 $18,573 $25,394 $41,589 9/30/98 $23,750 $19,358 $24,333 $37,451 12/31/98 $24,744 $19,424 $25,954 $45,428 3/31/99 $24,339 $19,327 $26,046 $47,690 6/30/99 $24,901 $19,157 $26,859 $51,053 9/30/99 $23,845 $19,287 $26,133 $47,862 12/31/99 $25,454 $19,264 $27,241 $54,984 3/31/2000 $25,891 $19,690 $27,669 $56,243 6/30/2000 $25,865 $20,032 $27,625 $54,747 9/30/2000 $25,943 $20,635 $28,485 $54,216 12/31/2000 $24,894 $21,504 $28,655 $49,976 Average Annual Total Returns+ One Yr. Five Yrs. Ten Yrs. ------- --------- -------- Seligman Income Portfolio-Class 1 (2.20)% 5.68% 9.55% Lehman Brothers Aggregate Bond Index (11.63) 6.46 7.96 Lipper Income Funds Average 5.19 9.06 11.10 S&P 500 (9.11) 18.33 17.46 Seligman Income Portfolio continued to have a higher percentage of its assets devoted to stocks than it has historically. This shift reflects our strategy to enhance the capital appreciation potential of the Portfolio, which should benefit shareholders over the long term in the form of higher total returns. Unfortunately, 2000 was a difficult year for equities, as stock prices were pushed down by fears of a slowing US economy and declining corporate profitability. Bonds, especially Treasuries, fared much better, despite a climate of rising interest rates. This is because investors were increasingly risk-averse. The bond market was also encouraged by the US government's growing budget surplus. Not surprisingly, the Portfolio's bond portion contributed most positively to performance. The Portfolio's overweightings in finance, energy, health care, and utilities also helped. Our exposure to technology, while slightly below that of the market, detracted from performance this year, but this was tempered by the fact that we built up our technology position gradually. We expect that the first half of 2001 will continue to be marked by stock market volatility, economic slowing, and declining corporate earnings. The Federal Reserve Board's recent rate cuts and its willingness to reduce rates further should help market sentiment. There will likely be a tug-of-war between weak earnings and falling interest rates, but we think economic indicators will improve during the second half of the year, as the economy starts to feel the effects of lower rates, a possible federal tax cut, increased capital spending, and renewed consumer confidence. We are positioning the Portfolio to seek to take advantage of this expected recovery by focusing on early cycle stocks such as semiconductors, retailers, and media stocks. In the bond portion of the Portfolio, we will focus on convertible securities (which can be converted into common stock), since they are currently available at very attractive prices. Historically, convertibles do well as rates fall and earnings prospects improve for the underlying 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-10. -- P-7 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- 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. Seligman International Lipper International Date Portfolio Funds Avg. EAFE Index 5/3/93 $10,000 $10,000 $10,000 6/30/93 $10,010 $10,009 $10,057 9/30/93 $10,480 $10,879 $10,731 12/31/93 $11,440 $11,918 $10,831 3/31/94 $10,987 $11,838 $11,216 6/30/94 $11,399 $11,974 $11,797 9/30/94 $11,751 $12,352 $11,816 12/31/94 $11,591 $11,876 $11,704 3/31/95 $11,428 $11,697 $11,931 6/30/95 $11,765 $12,189 $12,028 9/30/95 $12,603 $12,789 $12,539 12/31/95 $12,905 $13,059 $13,057 3/31/96 $13,228 $13,641 $13,443 6/30/96 $13,603 $14,143 $13,666 9/30/96 $13,520 $14,082 $13,659 12/31/96 $13,819 $14,672 $13,887 3/31/97 $13,925 $14,877 $13,680 6/30/97 $15,802 $16,543 $15,466 9/30/97 $15,716 $16,778 $15,367 12/31/97 $14,973 $15,502 $14,173 3/31/98 $17,295 $17,798 $16,269 6/30/98 $17,682 $17,921 $16,453 9/30/98 $14,719 $15,042 $14,125 12/31/98 $17,340 $17,525 $17,056 3/31/99 $17,374 $17,815 $17,305 6/30/99 $18,118 $18,816 $17,756 9/30/99 $18,705 $19,631 $18,548 12/31/99 $21,960 $24,662 $21,711 3/31/2000 $19,821 $24,934 $21,700 6/30/2000 $16,718 $23,610 $20,854 9/30/2000 $16,401 $21,834 $19,183 12/31/2000 $14,830 $20,787 $18,681 Average Annual Total Returns+ One Five Since Yr. Yrs. Inception ----- ---- --------- Seligman International Growth Portfolio-Class 1 (32.47)% 2.82% 5.27% Lipper International Funds Average (15.71) 9.74 10.00* MSCI EAFE Index (13.96) 7.43 8.49* *From April 30, 1993. The Portfolio's performance was hurt in 2000 by the fact that, as we added some growth-oriented stocks, technology and other aggressive stocks began to fall out of favor in the markets. We have conviction, however, about the quality of the stocks we own, and we believe that the Portfolio stands to benefit once the current market volatility subsides. The Portfolio employs a good mixture of bottom-up stock selection with a top-down view of where resources are best allocated. Our goal is to buy the best companies on a global basis, comparing the competitive characteristics of international companies to those of companies in the US. We do not ordinarily own any US companies, but we take the performance of US companies into account in evaluating international companies. We look at growth in sales per share, operating margins, and generation of cash flow; where international companies score higher than their US counterparts, we will include them in the Portfolio, always keeping in mind the importance of sector diversification. Complementing the bottom-up element of the process, we determine how much to dedicate to each country or region based on certain characteristics which, we believe, are conducive to wealth creation and competitiveness. These include stable price levels, balanced government fiscal accounts, inflows of capital, and balance of trade. Analysis of these factors helps us to structure the Portfolio's geographic allocation. The Portfolio is flexible in terms of market capitalization, enabling us to consider a range of quality small-, mid-, and large-cap companies, and is well-diversified across sectors and regions. During 2000, the Portfolio added to its consumer staples holdings, purchasing companies with superior profitability and market share advantage. We added several attractively-priced companies to the Portfolio's financial, telecommunications, and aerospace sectors. In the pharmaceutical area, we added companies with exposure to biotech, few imminent patent expirations, and excellent product pipelines. We also streamlined our technology holdings, selling some of the smaller companies. The Portfolio continued to be significantly underweighted in the UK during the period under review. We are concerned about the UK's current account balance, which is the result of the strong pound hurting British exports. While the British economy is still healthy, the UK tends to depend on the US as a market for its products, and the US economy has slowed considerably. This could be a problem for UK exporters. Continental Europe remained the Portfolio's largest geographic allocation, accounting for just under one-half of its assets. Despite the fact that a weak euro hurt dollar-denominated performance, we feel positive about the trends we see in Europe, and are gratified that the euro has regained strength versus the dollar. Europe boasts very good current account balances, it is not overly dependent on the US for exports, and inflation is under control. We are especially enthusiastic about the potential of the wireless Web in Europe, which is why we increased our telecommunications purchases there. The Japanese economy continued to be sluggish, and, for this reason, the Portfolio is underweighted in Japan. Prime Minister Yoshiro Mori has not undertaken the structural reform necessary to revive Japan's economy. We do, however, see opportunity in the growth of the wireless Web in Japan, and have added to the portfolio accordingly. The rest of Asia was negatively impacted by the weakness in the technology sector, which dominates its export-oriented economies; however, economic expansion there, especially in China, remains strong. The success of Europe will, in large part, be tied to the continuing recovery of the euro. Europe's strong macro fundamentals and the slowing of the US economy have renewed investor confidence in the euro, and this should lure investment money back to the region, giving European equities a boost and improving performance for dollar-based investors. The UK may see higher interest rates if its labor market remains tight and consumption continues to strengthen. We will be watching Japan for signs that its government is moving in the direction of reform. Asia's recovery from the 1997 crisis should continue. - -------------- 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-10. -- P-8 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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. Seligman Large-Cap Russell 1000 Lipper Large-Cap Date Growth Portfolio Growth Index Growth Funds Average 4/30/99 $10,000 $10,000 $10,000 5/31/99 $ 9,730 $ 9,693 $ 9,669 6/30/99 $10,420 $10,372 $10,368 7/31/99 $10,120 $10,042 $10,071 8/31/99 $10,270 $10,205 $10,096 9/30/99 $10,080 $ 9,991 $10,029 10/31/99 $10,470 $10,745 $10,742 11/30/99 $10,990 $11,325 $11,388 12/31/99 $12,160 $12,502 $12,878 1/31/2000 $11,650 $11,916 $12,365 2/29/2000 $12,320 $12,499 $13,386 3/31/2000 $12,850 $13,394 $14,020 4/30/2000 $12,480 $12,756 $13,106 5/31/2000 $12,100 $12,113 $12,288 6/30/2000 $13,340 $13,031 $13,276 7/31/2000 $12,900 $12,488 $13,004 8/31/2000 $14,260 $13,618 $14,201 9/30/2000 $13,410 $12,330 $13,231 10/31/2000 $12,390 $11,747 $12,507 11/30/2000 $10,530 $10,015 $10,787 12/31/2000 $10,210 $ 9,699 $10,770 Average Annual Total Returns+ One Since Yr. Inception ----- --------- Seligman Large-Cap Growth Portfolio-Class 1 (16.04)% 1.25% Lipper Large Cap Growth Funds Average (16.37) 4.53* Russell 1000 Growth Index (22.42) (1.81)** *From April 30, 1999. In 2000, the Portfolio was affected by an increasingly uncertain environment for growth and technology stocks, caused by the Federal Reserve Board's efforts to moderate economic growth by raising interest rates. The Portfolio's health care holdings contributed positively to overall performance. Health care typically performs well during an economic slowdown. The Portfolio's overweighting in utilities also helped because energy prices soared as a result of greatly increased demand. Technology represents about one-half of the Portfolio's assets, so last year's sharp losses in the sector clearly hurt absolute performance. We did, however, reduce our weighting in business-to-business Internet stocks, which performed poorly. The US economy slowed considerably in 2000 (from a 6% annualized growth rate at the beginning of the year to an estimated 1.4% at year-end). We see the first half of 2001 as a buying opportunity. Investors are likely to be cautious until it is clear that the Fed's recent rate cuts are helping the economy avoid a recession. The Portfolio will continue to buy into the consumer area, which we think will deliver strong performance as the economy rebounds. We expect to find attractive buying opportunities in technology. 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. Seligman Large-Cap Russell 1000 Lipper Multi Cap Date Value Portfolio Value Index Value Funds Average Lipper Multi-Cap 5/1/98 $10,000 $10,000 $10,000 $10,000 5/31/98 $ 9,990 $ 9,852 $ 9,828 $ 9,776 6/30/98 $ 9,920 $ 9,978 $10,227 $ 9,804 7/31/98 $ 9,550 $ 9,802 $10,119 $ 9,480 8/31/98 $ 7,980 $ 8,344 $ 8,655 $ 8,058 9/30/98 $ 8,050 $ 8,823 $ 9,210 $ 8,433 10/31/98 $ 9,000 $ 9,507 $ 9,959 $ 9,095 11/30/98 $ 9,940 $ 9,950 $10,563 $ 9,500 12/31/98 $ 9,974 $10,288 $11,171 $ 9,791 1/31/99 $ 9,933 $10,370 $11,638 $ 9,826 2/28/99 $ 9,716 $10,224 $11,276 $ 9,546 3/31/99 $10,046 $10,436 $11,727 $ 9,816 4/30/99 $10,862 $11,410 $12,181 $10,575 5/31/99 $10,862 $11,285 $11,893 $10,533 6/30/99 $11,089 $11,612 $12,553 $10,877 7/31/99 $10,635 $11,272 $12,162 $10,554 8/31/99 $10,284 $10,854 $12,101 $10,217 9/30/99 $ 9,427 $10,475 $11,769 $ 9,787 10/31/99 $ 9,933 $11,078 $12,514 $10,094 11/30/99 $ 9,778 $10,992 $12,768 $10,146 12/31/99 $ 9,698 $11,045 $13,521 $10,441 1/31/2000 $ 9,270 $10,684 $12,842 $ 9,967 2/29/2000 $ 8,235 $ 9,891 $12,599 $ 9,539 3/31/2000 $ 9,311 $11,097 $13,831 $10,555 4/30/2000 $ 9,594 $10,969 $13,415 $10,522 5/31/2000 $ 9,813 $11,084 $13,140 $10,619 6/30/2000 $ 9,176 $10,577 $13,463 $10,402 7/31/2000 $ 9,573 $10,709 $13,253 $10,442 8/31/2000 $10,315 $11,305 $14,076 $11,111 9/30/2000 $10,670 $11,409 $13,333 $10,972 10/31/2000 $11,537 $11,690 $13,277 $11,210 11/30/2000 $11,266 $11,256 $12,231 $10,731 12/31/2000 $12,204 $11,820 $12,291 $11,305 Average Annual Total Returns+ One Since Yr. Inception ----- --------- Seligman Large-Cap Value Portfolio-Class 1 25.84% 7.74% Lipper Multi Cap Value Funds Average 8.28 4.70* Russell 1000 Value Index 7.01 6.46* S&P 500 (9.11) 8.04* *From April 30, 1998. After a three-year period in which growth and technology stocks dominated the marketplace, a dramatic resurgence among value stocks occurred early in 2000, and continued throughout the year. Several factors were responsible for this shift, including the collapse of the technology stock speculation, decreased emphasis on momentum investing, and a return by investors to more traditional methods of valuing stocks. We steadfastly maintained our strict value discipline, and this consistency has benefited shareholders of Seligman Large-Cap Value Portfolio handsomely. In 2000, we witnessed a slowing of economic growth in the US, as repeated interest rate hikes by the Federal Reserve Board have had their intended effect. As the economic cooling became more and more apparent (as evidenced by weakening corporate earnings and slowing production), investors sold technology and other growth stocks and refocused their attention on value stocks, many of which had been unduly ignored for over two years. While many value stocks tend to be cyclical in nature, investors felt that the valuations of these issues, many at historic lows, were compelling, and sought to increase their exposure to these stocks. During 2000, the Portfolio maintained its large overweighting in financial stocks, even in the face of continued tightening by the Fed. This decision proved to be very advantageous, as financials were one of the best-performing sectors in 2000, due in part to the trend of mergers and acquisitions in the industry. Also contributing positively to performance this year were the - ---------------- 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-10. -- P-9 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Annual Performance Overview (continued) - -------------------------------------------------------------------------------- Seligman Large-Cap Value Portfolio (continued) Portfolio's holdings in the drug and health care sectors. Many of these stocks had been beaten down in the fourth quarter of 1998, and we took advantage of the deep discounts to add to our holdings. The Portfolio remained underweighted in technology, based on the conviction that many of these stocks were grossly overvalued and without strong earnings. This conviction was richly rewarded in 2000, as investors fled technology stocks and sought refuge in higher-quality issues. Our outlook for the market in 2001 is for better overall performance and for continued broadening of the market. We believe, however, that most of the improvement will come in the second half of the year. In the first half of 2001, we anticipate that economic growth will continue to be weak, and that corporate profitability will likely contract. We expect the Fed's interest rate reductions (announced on January 3 and January 31, totaling 1.0%) to have a positive effect, and we believe that the Fed will continue to reduce rates as necessary to encourage economic growth. The US economy is also likely to receive stimulation in the form of tax relief under the new administration, and we should see energy prices decline because of slower consumption. Both of these factors should boost discretionary spending, crucial to any recovery. 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. Seligman Small Cap Russell 2000 Lipper S-Cap Date Value Portfolio Value Index Value Funds Average 5/1/98 $10,000 $10,000 $10,000 5/31/98 $ 9,500 $ 9,646 $ 9,589 6/30/98 $ 9,150 $ 9,592 $ 9,419 7/31/98 $ 8,460 $ 8,841 $ 8,757 8/31/98 $ 6,350 $ 7,456 $ 7,220 9/30/98 $ 6,420 $ 7,878 $ 7,463 10/31/98 $ 6,850 $ 8,112 $ 7,767 11/30/98 $ 7,290 $ 8,332 $ 8,115 12/31/98 $ 8,300 $ 8,593 $ 8,400 1/31/99 $ 8,652 $ 8,398 $ 8,251 2/28/99 $ 8,345 $ 7,824 $ 7,692 3/31/99 $ 8,856 $ 7,760 $ 7,587 4/30/99 $10,900 $ 8,469 $ 8,285 5/31/99 $11,002 $ 8,729 $ 8,568 6/30/99 $11,910 $ 9,045 $ 8,975 7/31/99 $11,865 $ 8,830 $ 8,891 8/31/99 $10,934 $ 8,508 $ 8,538 9/30/99 $10,548 $ 8,338 $ 8,350 10/31/99 $ 9,946 $ 8,171 $ 8,187 11/30/99 $10,684 $ 8,214 $ 8,460 12/31/99 $11,226 $ 8,466 $ 8,850 1/31/2000 $10,782 $ 8,244 $ 8,568 2/29/2000 $10,935 $ 8,748 $ 8,861 3/31/2000 $11,935 $ 8,789 $ 9,319 4/30/2000 $12,310 $ 8,841 $ 9,266 5/31/2000 $12,060 $ 8,705 $ 9,158 6/30/2000 $12,018 $ 8,960 $ 9,446 7/31/2000 $12,241 $ 9,258 $ 9,496 8/31/2000 $13,741 $ 9,672 $10,138 9/30/2000 $13,449 $ 9,617 $10,055 10/31/2000 $13,394 $ 9,583 $ 9,947 11/30/2000 $13,449 $ 9,388 $ 9,537 12/31/2000 $14,931 $10,396 $10,442 Average Annual Total Returns+ One Yr. Since Inception ------- --------------- Seligman Small-Cap Value Portfolio-Class 1 33.00% 16.19% Lipper Small Cap Value Funds Average 17.99 1.63* Russell 2000 Value Index 22.83 1.47* *From April 30, 1998. The year 2000 will be remembered as a very good one for Seligman Small-Cap Value Portfolio, one in which value investing made a big comeback, and in which a measure of rationality returned to the market. Investors renewed their interest in profitable, "old economy" companies after realizing that many "new economy" ones had little or no earnings and could not continue to operate without continuous access to capital. As the excesses of 1999 (characterized by the downplaying of traditional valuation methods, the chasing of fads, and momentum investing) were reversed, value investors who stuck to their discipline were greatly rewarded. Many of the investments that the Portfolio had made in previous years, and which had suffered from a lack of investor interest, experienced substantial gains in 2000. Health rebound, with industrials also posting gains. The Portfolio's large underweighting in technology helped performance, since technology did so poorly in 2000. Going forward, the Portfolio will likely seek to buy some technology-related stocks whose prices have been beaten down (and may continue to fall) due to the slowing US economy. We are currently looking to add early-cycle, economically-sensitive stocks, an area in which the Portfolio is already well-represented. This includes the retail sector and consumer goods and services. This strategy is in anticipation of an upturn in the economy and an accompanying increase in consumer spending in the third and fourth quarters of 2001. The US economy will likely exhibit continued signs of slowing during the first half of 2001 before resuming its expansion in the second half of the year. Rather than a recession, we believe the economy is experiencing an economic pause and a period of readjustment after several years of extraordinary growth. Positive factors such as falling interest rates, expanding liquidity, and lower energy prices should work to ease the economy out of its current lethargy. Our outlook for small-cap value stocks is also positive based on several factors. History has shown that small-cap stocks tend to outperform larger-cap stocks in the absence of a major IPO market and during periods in which the Federal Reserve Board is cutting interest rates. Lower rates generally precipitate an economic acceleration and a surge in demand, and if that happens, investors may buy the stocks of small-cap companies first, since the earnings of these companies tend to grow more quickly than those of their larger counterparts. Against this favorable backdrop, we anticipate Seligman Small-Cap Value Portfolio will follow up its success in 2000 with another strong 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. + Performance data quoted represent past performance and assume that all dividends and distributions are invested in additional shares. -- P-10 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolio Overview - -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 SELIGMAN BOND PORTFOLIO 10 Largest Purchases - -------------------- US Treasury Notes 6 5/8%, 3/31/2002* US Treasury Bonds 6 1/4%, 8/15/2022* Southern California Edison 7.20%, 11/3/2003* US Treasury Notes 7 1/4%, 5/15/2004* FHLMC Gold 6.30%, 6/1/2004* Dominion Resources 7 5/8%, 7/15/2005* Metronet Communications 0% (9.95%), 6/15/2008* FNMA 6 1/2%, 5/1/2018* FHLMC 6 7/8%, 9/15/2010* Ford Credit Auto Owner Trust 6.74%, 6/15/2004* 10 Largest Sales - ---------------- Associates Corporation of North America 5 3/4%, 11/1/2003** Time Warner 9 1/8%, 1/15/2013** First USA Bank 6 1/8%, 6/25/2001** Dana 6 1/2%, 3/1/2009** American Home Products 7.90%, 2/15/2005** Allstate 7.785%, 5/1/2005** Heller Financial 7 7/8%, 5/15/2003** US West Communications 7.20%, 11/1/2004** Computer Science 6 1/4%, 3/15/2009** Chemical Master Credit 7.09%, 2/15/2009** - -------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO 10 Largest Purchases - -------------------- Adelphia* Palm* Citrix* Staples* Charter Communications (Class A)* Ariba* Broadwing* Wind River Systems* TriQuint Semiconductor* Actuate* 10 Largest Sales - ---------------- CIENA** Alza** Sycamore Networks** Siebel Systems** El Paso Energy** Elan (ADRs) AES** Quest Software** GlobeSpan** Finisar** - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO 10 Largest Purchases - -------------------- St. Jude Medical* Compaq Computer* Analog Devices* Vitesse Semiconductor* XL Capital (Class A)* Altera* Micron Technology* McDonald's* Calpine* Novellus Systems* 10 Largest Sales - ---------------- Bank of America** Chubb CVS** Wal-Mart Stores Anheuser-Busch** BP Amoco** J.P. Morgan** PepsiCo AT&T** Hewlett-Packard** - --------------------- See footnotes on page P-18. -- P-11 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolio Overview (continued) - -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO 10 Largest Purchases - -------------------- Analog Devices* Cisco Systems Juniper Networks* Compaq Computer* Commerce One* Cypress Semiconductor Tektronix* Macromedia Agilent Technologies* Scientific-Atlanta* 10 Largest Sales - ---------------- Intel** Microsoft American Power Conversion** SunGard Data Systems Infinity Broadcasting (Class A)** Sawtek** Cablevision Systems (Class A)** Check Point Software Technologies Sanmina** Micron Technology** - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO 10 Largest Purchases - -------------------- Proxim Western Wireless (Class A) Actuate MatrixOne* SBA Communications* Allegiance Telecom* Internet Securities Systems AirGate PCS Metris Companies Americredit* 10 Largest Sales - ---------------- I2 Technologies** Virata** Sawtek** Alpha Industries** Alpharma** Barr Laboratories Exar** Learning Tree International** Orbotech** SunGard Data Systems** - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO 10 Largest Purchases - -------------------- Analog Devices* AT&T* Vodafone* America Online* SBC Communications* Research in Motion* Brocade Communications Systems* Novartis* Redback Networks* Symbol Technologies* 10 Largest Sales - ---------------- L.M. Ericsson Telefon (Series B)** Alza** Alcatel Corning** Mediolanum** AES Tomra Systems** Williams Companies** Walt Disney** Tyco International - --------------------- See footnotes on page P-18 -- P-12 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** December 31, 2000 SELIGMAN GLOBAL GROWTH PORTFOLIO
Percent of Net Assets December 31, -------------------- Issues Cost Value 2000 1999 ------ ---------- ---------- ------- ------- Common and Preferred Stocks Automotive and Related ............... 3 $ 132,128 $ 161,216 1.9% 1.0% Business Goods and Services .......... 1 28,596 78,524 1.0 7.4 Commercial Services .................. -- -- -- -- 1.4 Communications Services .............. -- -- -- -- 0.5 Computer and Technology Related ...... 8 823,963 659,838 7.9 18.9 Construction and Property ............ -- -- -- -- 1.0 Consumer Goods and Services .......... 8 535,296 572,543 6.9 5.2 Consumer Staples ..................... 2 180,449 163,510 2.0 0.6 Diversified .......................... 1 106,687 183,150 2.2 5.4 Drugs and Health Care ................ 7 575,956 706,246 8.5 5.4 Electronics .......................... 9 460,536 525,025 6.3 4.1 Electronics Capital Equipment ........ -- -- -- -- 1.7 Entertainment and Leisure ............ -- -- -- -- 3.7 Financial Services ................... 14 1,033,244 1,192,352 14.3 8.6 Industrial Goods and Services ........ -- -- -- -- 0.8 Manufacturing and Industrial Equipment 5 313,278 350,524 4.2 0.6 Media ................................ 4 258,550 259,726 3.1 2.2 Medical Products and Technology ...... 5 377,067 461,670 5.5 -- Resources ............................ 1 114,447 116,300 1.4 1.1 Restaurants .......................... -- -- -- -- 0.8 Retailing ............................ 4 317,722 329,106 3.9 3.5 Support Services ..................... -- -- -- -- 0.2 Telecommunications ................... 18 1,903,482 1,638,783 19.6 20.6 Tobacco .............................. 1 113,520 118,800 1.4 0.8 Transportation ....................... 3 141,157 152,096 1.8 1.2 Utilities ............................ 2 75,942 109,427 1.3 1.6 --- ---------- ---------- ----- ----- 96 7,492,020 7,778,836 93.2 98.3 Other Assets Less Liabilities ........ -- 568,983 568,983 6.8 1.7 --- ---------- ---------- ----- ----- Net Assets ........................... 96 $8,061,003 $8,347,819 100.0% 100.0% === ========== ========== ===== =====
LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO 10 Largest Purchases - -------------------- Mediclin* Proxim SMTC* Western Wireless (Class A) Actuate SBA Communications Matrixone* Unique International* Allegiance Telecom* Ifco Systems* 10 Largest Sales - ---------------- I2 Technologies** Informa Group** Ryanair Holdings Kaba Holding Royal Canin Sondagsavisen** Ekornes** Clearnet Communications (Class A)** Samas Groep** Celestica** - --------------------- See footnotes on page P-18. -- P-13 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolio Overview (continued) - -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** December 31, 2000 SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO
Percent of Net Assets December 31, --------------------- Issues Cost Value 2000 1999 ------ ---------- ---------- ------- ------- Common and Preferred Stocks Advertising ......................... 2 $ 44,167 $ 35,369 0.2% 0.3% Automotive Parts Manufacturing ...... 2 147,742 226,988 1.6 1.4 Business Services ................... 10 397,053 562,765 3.9 9.0 Cable Systems and Satellite Video ... -- -- -- -- 0.4 Capital Goods ....................... -- -- -- -- 0.6 Chemicals ........................... 2 118,703 75,752 0.5 1.1 Communications Infrastructure ....... -- -- -- -- 0.1 Computer Software ................... 22 1,680,526 1,881,544 13.1 14.9 Construction and Property ........... 7 462,098 623,487 4.4 3.8 Consulting Services ................. 5 217,946 294,183 2.1 0.5 Consumer Goods and Services ......... 10 440,246 459,345 3.2 6.4 Contract Manufacturing/Circuit Boards -- -- -- -- 0.3 Distribution ........................ 1 25,513 20,854 0.1 0.2 Drugs and Health Care ............... 24 1,276,087 1,710,090 12.0 4.7 Electrical Distribution ............. 1 47,169 94,599 0.7 0.7 Electronics ......................... 12 366,914 309,944 2.2 5.1 Financial Services .................. 14 636,186 880,099 6.2 4.0 Industrial Goods and Services ....... 9 454,548 657,526 4.6 2.4 Internet/Online ..................... 1 36,716 40,675 0.3 -- Leisure and Hotels .................. 9 415,666 321,623 2.2 0.9 Manufacturing ....................... 11 516,960 559,878 3.9 6.2 Media ............................... 10 296,717 402,330 2.8 7.2 Medical Products and Technology ..... 8 258,698 388,756 2.7 2.0 Metals .............................. -- -- -- -- 0.2 Paper and Printing .................. 2 80,646 58,933 0.4 0.8 Resources ........................... 6 205,564 283,259 2.0 1.4 Restaurants ......................... 5 248,695 305,529 2.1 1.5 Retailing ........................... 18 1,012,769 569,980 4.0 4.5 Schools ............................. 2 77,322 157,513 1.1 0.9 Support Services .................... -- -- -- -- 0.3 Technology .......................... 4 142,463 251,883 1.8 7.1 Telecommunications .................. 19 2,019,702 1,607,378 11.2 5.4 Transportation ...................... 6 179,084 330,171 2.3 3.0 Utilities ........................... 2 58,271 55,239 0.4 0.1 Veterinary Products ................. -- -- -- -- 0.7 Miscellaneous ....................... -- -- -- -- 0.1 --- ----------- ----------- ----- ----- 224 11,864,171 13,165,692 92.0 98.2 Other Assets Less Liabilities ....... -- 1,144,072 1,144,072 8.0 1.8 --- ----------- ----------- ----- ----- Net Assets .......................... 224 $13,008,243 $14,309,764 100.0% 100.0% === =========== =========== ===== =====
- --------------------- See footnotes on page P-18. -- P-14 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 10 Largest Purchases - -------------------- Spirent* GN Store Nord* Unaxis Holding* Altran Technologies Aixtron* Swisslog Holdings* Leica Geosystems* Arm Holdings* Vestas Wind Systems* Business Objects (ADRs)* 10 Largest Sales - ---------------- Siemens** Microsoft** Act Manufacturing** STMicroelectronics** Alcatel Autonomy** Advantest** ASM Lithography** Comverse Technology Taiwan Semiconductor Manufacturing** DIVERSIFICATION OF NET ASSETS*** December 31, 2000
Percent of Net Assets December 31, --------------------- Issues Cost Value 2000 1999 ------ ----------- ----------- --------- --------- Common Stocks Cable Systems and Satellite Video -- -- -- -- 0.4% Communications Infrastructure ... 1 $ 171,662 $ 118,575 0.4% 1.4 Computer and Technology Related . 2 840,462 820,495 2.9 -- Computer Hardware/Peripherals ... 5 1,430,204 830,884 2.9 5.6 Computer Software ............... 11 3,877,400 3,372,101 11.7 21.4 Electronic Components ........... 12 2,159,099 1,704,710 5.9 -- Electronic Manufacturing Services 4 734,588 553,660 1.9 3.1 Electronics ..................... 5 2,247,143 1,805,378 6.3 15.6 Electronics Capital Equipment ... 12 4,075,543 3,423,245 11.9 13.2 Information Services ............ 11 4,247,225 4,762,013 16.6 8.1 Machinery and Equipment ......... -- -- -- -- 0.9 Manufacturing ................... -- -- -- -- 0.8 Media ........................... -- -- -- -- 0.8 Medical Products and Technology . -- -- -- -- 0.3 Semiconductors .................. 12 2,550,711 2,179,507 7.6 15.5 Telecommunications .............. 12 4,558,207 4,558,464 15.8 10.7 Wire and Cable Products ......... 1 341,652 311,459 1.1 -- --- ----------- ----------- ----- ----- 88 27,233,896 24,440,491 85.0 97.8 Other Assets Less Liabilities ... -- 4,329,081 4,329,081 15.0 2.2 --- ----------- ----------- ----- ----- Net Assets ...................... 88 $31,562,977 $28,769,572 100.0% 100.0% === =========== =========== ===== =====
- --------------------- See footnotes on page P-18. -- P-15 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolio Overview (continued) - -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 SELIGMAN HIGH-YIELD BOND PORTFOLIO 10 Largest Purchases - -------------------- Mandalay Resorts Group 10 1/4%, 8/1/2007 360networks 13%, 5/1/2008* Adelphia Communications 10 7/8%, 10/1/2010* Williams Communications 11.70%, 8/1/2008* SpectraSite Holdings 10 3/4%, 3/15/2010* Dobson Communications 10 7/8%, 7/1/2010* Lamar Media 8 5/8%, 9/15/2007* PSINet 11 1/2%, 11/1/2008 Cumulus Media 10 3/8%, 7/1/2008 McLeodUSA 12%, 7/15/2008* 10 Largest Sales - ---------------- Advanced Micro Devices 11%, 8/1/2003** CapRock Communications 12%, 7/15/2008** Verio 13 1/2%, 6/15/2004** Ameristar Casinos 10 1/2%, 8/1/2004** GlobeNet Communications Group 13%, 7/15/2007** Advanstar Communications 9 1/4%, 5/1/2008** Nextel Communications 9 3/8%, 11/15/2009** Capstar Broadcasting 0% (12 3/4%), 2/1/2009** Williams Scotsman 9 7/8%, 6/1/2009 Williams Communications 10 7/8%, 10/1/2009 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO 10 Largest Purchases - -------------------- US Treasury Bonds 6 1/4%, 8/15/2023* St. Jude Medical* Ocean Energy 8 3/8%, 7/1/2008* Compaq Computer* Micron Technology* XL Capital (Class A)* Vitesse Semiconductor* Metronet Communications 0% (9.95%), 6/15/2008* Conexant Systems* Dominion Resources 7 5/8%, 7/15/2005* 10 Largest Sales - ---------------- Peco Energy Transition Trust 6.05%, 3/1/2009** GNMA 6%, 12/20/2028 Dana 6 1/2%, 3/1/2009** US Treasury Notes 6 5/8%, 5/15/2007 FHLMC Gold 5 1/2%, 7/1/2013 American Home Products 7.90%, 2/15/2015** Bank of America** US West Communications Services 7.20%, 11/1/2004** Delta Air Lines 7.70%, 12/15/2005** Wal-Mart Stores - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO 10 Largest Purchases - -------------------- Vodafone* Akzo Nobel* Novartis* HSBC* Munich Re* Telefonica* Unilever* Takeda Chemical Industries* Deutsche Telekom* Allianz* 10 Largest Sales - ---------------- Bombardier (B Shares)** Schering** Vestas Wind Systems Prosafe** Fujisawa Pharmaceutical** Shionogi** Nissan Food Products** Straumann Holding** TDK** Castorama Dubois Investments** - --------------------- See footnotes on page P-18. -- P-16 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- DIVERSIFICATION OF NET ASSETS*** December 31, 2000 SELIGMAN INTERNATIONAL GROWTH PORTFOLIO
Percent of Net Assets -------------------- December 31, -------------------- Issues Cost Value 2000 1999 ------ ---------- ---------- -------- --------- Common and Preferred Stocks Automotive and Related ........ 2 $ 105,648 $ 110,040 1.5% 1.9% Banking ....................... 5 375,319 475,750 6.7 12.1 Business Services ............. 1 63,979 85,521 1.2 5.8 Chemicals ..................... 1 132,249 118,265 1.7 2.8 Computer and Technology Related 3 151,433 110,884 1.5 -- Consumer Products ............. 8 659,793 714,314 10.0 5.9 Drugs and Health Care ......... 3 269,202 260,220 3.6 3.6 Electronics ................... 6 392,440 361,789 5.1 5.5 Entertainment and Leisure ..... 1 667 677 -- 4.1 Financial Services ............ 5 379,541 423,130 5.9 5.4 Health and Household .......... 2 367,505 421,576 5.9 4.9 Industrial Goods and Services . -- -- -- -- 6.1 Insurance ..................... 4 479,200 588,597 8.2 4.4 Manufacturing ................. 3 211,127 275,507 3.9 5.2 Media ......................... 3 270,071 251,964 3.5 3.2 Medical Products and Technology 2 185,977 178,714 2.5 -- Metals ........................ -- -- -- -- 1.0 Power Generation Equipment .... 2 101,106 138,365 1.9 -- Publishing .................... 1 68,700 79,406 1.1 2.0 Resources ..................... 2 182,760 184,037 2.6 5.1 Retailing ..................... 3 385,123 407,324 5.7 1.2 Telecommunications ............ 14 1,513,737 1,341,106 18.8 14.0 Tobacco ....................... -- -- -- -- 0.5 Transportation ................ 3 211,403 228,728 3.2 0.8 Utilities ..................... 3 246,435 267,792 3.7 1.8 --- ---------- ---------- ----- ----- 77 6,753,415 7,023,706 98.2 97.3 Other Assets Less Liabilities . -- 125,775 125,775 1.8 2.7 --- ---------- ---------- ----- ----- Net Assets .................... 77 $6,879,190 $7,149,481 100.0% 100.0% === ========== ========== ===== =====
- --------------------- See footnotes on page P-18. -- P-17 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolio Overview (continued) - -------------------------------------------------------------------------------- LARGEST PORTFOLIO CHANGES+ During the Six Months Ended December 31, 2000 SELIGMAN LARGE-CAP GROWTH PORTFOLIO 10 Largest Purchases - -------------------- Guidant America Online* Philip Morris* Oracle Qualcomm SBC Communications* AT&T* Sprint* Texas Instruments* Verizon Communications* 10 Largest Sales - ---------------- AES** Corning** ALZA** Enron** Tyco International Johnson & Johnson** Eli Lilly** Micron Technology** Merck** Schlumberger** - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO Largest Purchases - ----------------- Chase Manhattan Bank* International Business Machines* Sprint* UnumProvident* International Paper* Costco Wholesale* Georgia-Pacific Group Edison International* Largest Sales - ------------- AXA Financial** Honeywell** United Healthcare Group Summit Bancorp Crown Cork & Seal** B.F. Goodrich General Motors** Armstrong World Industries** Fort James** St. Paul Companies - -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP PORTFOLIO 10 Largest Purchases - -------------------- Smurfit-Stone Container* Trimble Navigation* Orion Power Holdings* Minerals Technologies* Olin* Mueller Industries True North Communications Mutual Risk Management Pharmacopeia* Midcoast Energy Resources 10 Largest Sales - ---------------- Avis Group Holdings** Bank United** Bayview Capital** American National Can Group** Oxford Health Plans Complete Business Solutions** Applied Extrusion Technologies** Cubic Rent-Way** EXFO Electro-Optical Engineering** + Largest portfolio changes from the previous period to the current period are based on cost of purchases and proceeds from sales of securities, listed in descending order. The data has not been audited by Ernst & Young LLP. * Position added during the period. ** Position eliminated during the period. *** "Diversification of Net Assets" is included for the Seligman International Portfolios because their portfolio holdings are listed by country rather than by industry in the "Portfolios of Investments." -- P-18 -- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Portfolios of Investments December 31, 2000 - ------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO Principal Amount Value --------- -------- CORPORATE BONDS -- 33.9% Avnet 7 7/8%, 2/15/2005 ............ $ 60,000 $ 59,372 Bank One 5 5/8%, 2/17/2004 ........ 75,000 73,010 Boston Scientific 6 5/8%, 3/15/2005 ....................... 100,000 91,113 Cardinal Health 6 1/4%, 7/15/2008 ....................... 100,000 96,011 CIT Group: 7 3/8, 3/15/2003 ................ 30,000 30,355 7 1/8, 10/15/2004 ............... 60,000 60,092 Citigroup 6 3/4%, 12/1/2005 ........ 50,000 51,149 Computer Sciences 7 1/2%, 8/8/2005 ........................ 50,000 51,620 Continental Airlines: 8.04%, 11/1/2020 ................ 49,550 53,170 7.71%, 4/2/2021 ................. 40,000 42,425 CSC Holdings 7 1/4%, 7/15/2008 ....................... 100,000 97,333 DaimlerChrysler North America 7 3/4%, 6/15/2005 ............... 80,000 81,477 Delta Air Lines 7.70%, 12/15/2005 ...................... 75,000 74,256 Dominion Resources 7 5/8%, 7/15/2005 ....................... 90,000 93,963 Dow Chemical 7%, 8/15/2005 ......... 50,000 51,456 Global Crossing Holdings 9 1/8%, 11/15/2006 ...................... 75,000 72,187 Guidant 6.15%, 2/15/2006 ........... 100,000 96,672 Heller Financial 6 1/2%, 7/22/2002.. 75,000 74,922 Household Finance 7 7/8%, 3/1/2007 ........................ 100,000 104,213 Leggett & Platt 7.65%, 2/15/2005 ....................... 50,000 51,542 Lyondell Chemical 9 5/8%, 5/1/2007 ........................ 100,000 97,250 Mellon Funding 7 1/2%, 6/15/2005 ....................... 50,000 52,582 Metronet Communications 0% (9.95%++), 6/15/2008 ............ 100,000 81,179 Motorola 7 5/8%, 11/15/2010 ........ 20,000 20,598 Ocean Energy 8 3/8%, 7/1/2008 ...... 75,000 76,688 Qwest Communications 0% (9.47%++), 10/15/2007 ........... 50,000 45,863 Principal Amount Value --------- -------- CORPORATE BONDS (continued) Schwab (Charles) 8.05%, 3/1/2010 ........................ $ 50,000 $ 53,684 Southern California Edison 7.20%, 11/3/2003* ............... 115,000 98,708 Staples 7 1/8%, 8/15/2007 .......... 75,000 70,272 State Street 7.65%, 6/15/2010 ..... 50,000 53,354 United Airlines 7.03%, 10/1/2010 ....................... 40,000 40,963 Wells Fargo 7.25%, 8/24/2005 ....... 50,000 52,083 WorldCom 8%, 5/15/2006 ............. 50,000 50,927 ---------- Total Corporate Bonds (Cost $2,192,740) ................ 2,200,489 ---------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 32.1% US Treasury Bonds: 8 3/4%, 5/15/2020 ............... 300,000 411,649 7 1/4%, 8/15/2022 ............... 200,000 241,147 6 1/4%, 8/15/2022 ............... 200,000 216,355 US Treasury Notes: 6 5/8%, 3/31/2002 ............... 500,000 507,375 6 1/4%, 6/30/2002 ............... 200,000 202,714 7 1/4%, 5/15/2004 ............... 100,000 106,472 6 5/8%, 5/15/2007 ............... 300,000 323,681 6%, 8/15/2009 ................... 70,000 73,906 --------- Total US Government and Securities (Cost $1,976,748) ............... 2,083,299 --------- MORTGAGE-BACKED SECURITIES+ -- 24.7% FHLMC: 6 7/8%, 9/15/2010 ............... 70,000 74,761 FHLMC GOLD: 6.30%, 6/1/2004 ................. 100,000 99,815 5 1/8%, 10/15/2008 .............. 100,000 94,763 6%, 11/1/2010 ................... 64,743 63,984 7 1/2%, 10/1/2017 ............... 67,379 68,611 8%, 12/1/2023 ................... 40,364 41,706 - ------------------- * Non-income producing security. + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. ++ 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-19 -- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Portfolios of Investments (continued) - ------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO (continued) Principal Amount Value --------- -------- MORTGAGE-BACKED SECURITIES+ (continued) FNMA: 5 3/4%, 4/15/2003 ............... $ 75,000 $ 75,299 6 1/2%, 4/29/2009 ............... 160,000 157,854 6 1/2%, 5/1/2018 ................ 76,207 75,708 7%, 10/1/2020 ................... 49,215 49,513 6%, 12/1/2028 ................... 175,806 170,259 8 1/2%, 9/1/2015 ................ 98,809 102,035 8%, 6/1/2028 .................... 43,545 44,904 7 1/2%, 6/1/2030 ................ 49,163 49,892 GNMA: 6%, 12/20/2028 .................. 178,244 172,619 6 1/2%, 12/15/2028 .............. 259,014 256,491 ---------- Total Mortgage-Backed Securities (Cost $1,585,059) ............... 1,598,214 ---------- ASSET-BACKED SECURITIES+ -- 6.0% Citibank Credit Card 6 7/8%, 11/15/2009 ...................... 70,000 73,922 Principal Amount Value --------- -------- ASSET-BACKED SECURITIES (continued) Ford Credit Auto Owner Trust 6.74%, 6/15/2004 ................ $ 75,000 $ 76,240 MBNA Master Credit Card 6.90%, 1/15/2008 ................ 60,000 62,292 Peco Energy Transition Trust 6.05%, 3/1/2009 ................. 100,000 99,265 PP&L Transition 6.83%, 3/25/2007 ....................... 75,000 76,490 ---------- Total Asset-Backed Securities (Cost $379,808) ................. 388,209 ---------- Total Investments -- 96.7% (Cost $6,134,355) ............... 6,270,211 Other Assets Less Liabilities -- 3.3% ........ 212,408 ---------- Net Assets -- 100.0% ............... $6,482,619 ========== - ------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 97.9% CAPITAL GOODS -- 5.4% Mettler-Toledo International* ...... 16,300 $ 886,312 Newport News Shipbuilding .......... 15,500 806,000 Symbol Technologies ................ 10,800 388,800 ---------- 2,081,112 ---------- COMMUNICATIONS SERVICES -- 21.0% Adelphia Communications (Class A)* ...................... 27,000 1,394,719 ALLTEL ............................. 14,800 924,075 Broadwing* ......................... 34,300 782,469 Brocade Communications Systems* ........................ 12,000 1,101,375 CenturyTel ......................... 11,100 396,825 Charter Communications (Class A)* ...................... 62,500 1,419,922 Shares Value -------- --------- COMMUNICATIONS SERVICES (continued) McDATA (Class B)* .................. 7,400 $ 405,381 Openwave Systems* .................. 19,607 933,171 Redback Networks* .................. 10,800 442,462 Research in Motion* (Canada) ........................ 4,100 329,537 ---------- 8,129,936 ---------- CONSUMER CYCLICALS -- 9.1% Bed Bath & Beyond* ................. 22,100 495,178 Carnival ........................... 8,600 264,988 Harley-Davidson .................... 10,800 429,300 Pepsi Bottling Group ............... 12,100 483,244 Reader's Digest Association (Class A) ....................... 26,500 1,036,812 Staples* ........................... 69,200 819,588 --------- 3,529,110 --------- - ----------------- * Non-income producing security. + Investments in mortgage-backed and asset-backed securities are subject to principal paydowns. As a result of prepayments from refinancing or satisfaction of the underlying instruments, the average life may be less than the original maturity. This in turn may impact the ultimate yield realized from these investments. See Notes to Financial Statements. -- P-20 -- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- December 31, 2000 - ------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO Shares Value -------- --------- ELECTRONIC TECHNOLOGY -- 13.3% Ariba* ............................. 7,400 $ 397,056 Atmel* ............................. 30,400 354,350 BISYS Group* ....................... 11,800 618,763 Citrix Systems* .................... 41,700 939,553 Gentex* ............................ 2,300 42,550 Handspring* ........................ 7,800 302,981 Palm* .............................. 20,600 582,594 Qlogic* ............................ 5,500 424,703 Triquint Semiconductor* ............ 18,800 821,913 Waters* ............................ 8,000 668,000 ----------- 15,152,463 ----------- FINANCIAL SERVICES -- 9.2% ACE (Bermuda) ...................... 29,800 1,264,638 AFLAC .............................. 16,550 1,194,703 XL Capital (Class A) (Bermuda) ....................... 12,700 1,109,662 ----------- 3,569,003 ----------- HEALTH CARE -- 14.9% Abgenix* ........................... 5,700 336,834 Biogen* ............................ 6,100 366,572 Elan (ADRs)* (Ireland) ............. 13,200 617,925 Gilead Sciences* ................... 8,700 721,556 Human Genome Sciences* ............. 6,400 443,600 Immunex* ........................... 10,000 406,562 IMS Health ......................... 14,400 388,800 MedImmune* ......................... 12,300 586,941 Millennium Pharmaceuticals* ........ 4,400 272,250 QLT* (Canada) ...................... 10,400 291,850 Quintiles Transnational* ........... 6,500 136,297 Watson Pharmaceuticals* ............ 23,350 1,195,228 ----------- 5,764,415 ----------- Shares Value -------- --------- TECHNOLOGY SERVICES -- 23.9% Actuate* ........................... 28,200 $ 540,206 Applera-Applied Biosystems Group ................ 10,900 1,025,281 BEA Systems* ....................... 8,200 551,963 Commerce One* ...................... 10,100 256,288 Concord EFS* ....................... 18,800 826,025 Fiserv* ............................ 8,800 417,725 Internet Security Systems* ......... 10,900 854,628 Interwoven* ........................ 9,900 652,472 Intuit* ............................ 3,700 145,803 Mercury Interactive* ............... 5,600 505,225 Rational Software* ................. 17,500 680,859 SunGard Data Systems* .............. 19,400 914,225 TIBCO Software* .................... 5,600 271,075 VeriSign* .......................... 9,800 726,425 Vignette* .......................... 8,200 148,881 Wind River Systems* ................ 21,500 733,016 ----------- 9,250,097 ----------- UTILITIES -- 1.1% Kinder Morgan ...................... 7,800 407,063 ----------- Total Common Stocks (Cost $38,392,181) .............. 37,883,199 Short-Term Holdings -- 3.6% (Cost $1,400,000) ............... 1,400,000 ----------- Total Investments -- 101.5% (Cost $39,792,181) .............. 39,283,199 Other Assets Less Liabilities -- (1.5)% ........... (576,380) ----------- Net Assets -- 100.0% ............... $38,706,819 ============ - ------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO Annualized Yield on Principal Purchase Date Amount Value ------------- --------- ----------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 48.6% US GOVERNMENT SECURITIES -- 8.1% (Cost $995,333) US Treasury Bills, 2/1/2001 ............... 5.50% $1,000,000 $ 995,333 ---------- US GOVERNMENT AGENCY SECURITIES -- 40.5% Farm Credit Bank, 2/6/2001 ............... 6.37% $1,000,000 $ 993,720 Federal Agricultural Mortgage, 1/11/2001 .... 6.48 1,000,000 998,225 Federal Home Loan Bank, 1/19/2001 ........ 6.50 1,000,000 996,795 - ---------------- * Non-income producing security. See Notes to Financial Statements. -- P-21 -- Seligman Portfolios, Inc. - ------------------------------------------------------------------------------- Portfolios of Investments (continued) - ------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO (continued) Annualized Yield on Principal Purchase Date Amount Value ------------- --------- ----------- US GOVERNMENT AGENCY SECURITIES (continued) Federal Home Loan Mortgage, 2/1/2001 ..... 6.32% $ 1,000,000 $ 994,635 Federal National Mortgage Association, 1/4/2001 ............... 6.54 1,000,000 999,463 ---------- Total US Government Agency Securities (Cost $4,982,838) ...... 4,982,838 ---------- Total US Government and Government Agency Securities (Cost $5,978,171) ...... 5,978,171 ---------- COMMERCIAL PAPER -- 16.2% American Express Credit, 1/12/2001 .............. 6.63 500,000 500,000 American General Finance, 1/5/2001 ...... 6.65 500,000 499,635 Ford Motor Credit, 1/12/2001 .............. 6.68 500,000 498,993 General Electric Capital, 1/12/2001 .............. 6.62 500,000 500,000 ---------- Total Commercial Paper (Cost $1,998,628) ...... 1,998,628 ---------- Annualized Yield on Principal Purchase Date Amount Value ------------- --------- ----------- REPURCHASE AGREEMENTS -- 14.6% (Cost $1,800,000) State Street Bank & Trust, 5.75%, dated 12/29/2000, maturing 1/2/2001 collateralized by: $1,785,000 US Treasury Notes 5 1/2% 2/15/2008, with fair market value of $1,855,309.............. 5.83% $ 1,800,000 $ 1,800,000 ------------ FIXED TIME DEPOSITS -- 8.1% (Cost $1,000,000) Bank of Montreal, Toronto, 1/2/2001................ 6.46 500,000 500,000 Bank One, Grand Cayman, 1/2/2001................ 6.34 500,000 500,000 ------------ Total Fixed Time Deposits (Cost $1,000,000)....... 1,000,000 ------------ Total Investments -- 87.5% (Cost $10,776,799)...... 10,776,799 Other Assets Less Liabilities -- 12.5%.... 1,541,367 ------------ Net Assets -- 100.0%....... $ 12,318,166 ============ - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 99.4% COMMUNICATION EQUIPMENT -- 1.4% Lucent Technologies ....... 9,750 $ 131,625 QUALCOMM* ................. 3,800 312,194 ---------- 443,819 ---------- Shares Value -------- --------- COMMUNICATIONS -- 4.1% SBC Communications ........ 11,528 $ 550,462 Sprint .................... 7,500 152,344 Verizon Communications 9,812 491,827 WorldCom* ................. 11,400 160,312 ---------- 1,354,945 ---------- - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-22 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares Value -------- --------- CONSUMER GOODS AND SERVICES -- 5.9% Coca-Cola ................. 4,200 $ 255,938 Gillette .................. 11,500 415,438 McDonald's ................ 11,600 394,400 PepsiCo ................... 6,500 322,156 Procter & Gamble .......... 3,500 274,531 Ralston Purina Group ...... 10,200 266,475 ---------- 1,928,938 ---------- DRUGS AND HEALTH CARE -- 16.2% Abbott Laboratories ....... 11,800 571,562 American Home Products..... 6,700 425,785 Baxter International ...... 7,200 635,850 Guidant* .................. 12,500 674,219 Johnson & Johnson ......... 4,400 462,275 Merck ..................... 6,900 646,013 Pfizer .................... 13,500 621,000 Pharmacia ................. 5,000 305,000 St. Jude Medical* ......... 15,500 952,281 ---------- 5,293,985 ---------- ELECTRIC AND GAS UTILITIES -- 6.5% Calpine* .................. 9,400 423,587 Coastal ................... 10,700 944,944 Williams Companies (The) .. 18,700 746,831 ---------- 2,115,362 ---------- ELECTRONIC TECHNOLOGY -- 15.1% Agilent Technologies* ..... 7,634 417,962 Altera* ................... 6,700 176,503 Analog Devices* ........... 5,900 302,006 Applied Materials* ........ 15,200 580,450 Cisco Systems* ............ 19,600 749,700 Compaq Computer ........... 12,600 189,630 Dell Computer* ............ 16,100 281,247 EMC* ...................... 2,900 192,850 Gateway* .................. 3,300 59,367 Intel .................... 21,500 646,344 International Business Machines ............... 6,150 522,750 Micron Technology* ........ 4,700 166,850 Novellus Systems* ......... 6,900 247,322 Sun Microsystems* ......... 5,400 150,356 Vitesse Semiconductor* .... 4,900 271,184 ---------- 4,954,521 ---------- Shares Value -------- --------- ENERGY -- 7.9% Baker Hughes .............. 5,100 $ 211,969 Exxon Mobil ............... 11,200 973,700 Royal Dutch Petroleum (ADRs) (Netherlands) .......... 11,400 690,412 Schlumberger .............. 8,900 711,444 ---------- 2,587,525 ---------- FINANCE AND INSURANCE -- 20.0% American General .......... 10,800 880,200 American International Group 12,550 1,236,959 Bank of New York .......... 23,300 1,285,869 Chubb ..................... 8,500 735,250 Citigroup ................. 15,000 765,938 Fannie Mae ................ 7,700 667,975 Merrill Lynch ............. 6,900 470,494 XL Capital (Class A) (Bermuda) .............. 5,850 511,144 ---------- 6,553,829 ---------- MACHINERY AND INDUSTRIAL EQUIPMENT -- 8.2% General Electric .......... 34,200 1,639,462 United Technologies ....... 13,200 1,037,850 ---------- 2,677,312 ---------- MEDIA -- 0.9% Comcast (Class A)* ........ 6,900 287,859 ---------- OFFICE EQUIPMENT -- 2.1% Pitney Bowes .............. 21,150 700,594 ---------- PAPER AND FOREST PRODUCTS -- 0.4% Mead ...................... 4,600 144,325 ---------- RETAIL TRADE -- 3.9% Costco Wholesale* ......... 4,700 187,853 Home Depot ................ 5,100 233,006 Kroger* ................... 6,500 175,906 May Department Stores ..... 5,900 193,225 Wal-Mart Stores ........... 9,100 483,437 ---------- 1,273,427 ---------- - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-23 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO (continued) Shares Value -------- --------- TECHNOLOGY SERVICES -- 6.8% America Online* ........... 5,800 $ 201,840 Electronic Data Systems ... 14,200 820,050 Microsoft* ................ 20,000 868,125 Oracle* ................... 11,200 325,500 ------------ 2,215,515 ------------ Total Common Stocks (Cost $27,803,314) ..... 32,531,956 Value --------- SHORT TERM HOLDINGS -- 1.5% (Cost $500,000) ........ $ 500,000 ------------ Total Investments -- 100.9% (Cost $28,303,314) ..... 33,031,956 Other Assets Less Liabilities -- (0.9)% .. (294,133) ------------ Net Assets -- 100.0% ...... $ 32,737,823 ============ - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 89.1% COMMUNICATIONS INFRASTRUCTURE -- 5.1% Andrew* ................... 44,600 $ 971,444 CIENA* .................... 9,900 805,613 Cisco Systems* ............ 90,100 3,446,325 Juniper Networks* ......... 9,500 1,198,188 Nortel Networks (Canada) .. 14,700 471,319 ------------ 6,892,889 ------------ COMMUNICATIONS SERVICES -- 1.2% Qwest Communications International* ......... 7,700 315,700 Scientific-Atlanta ........ 24,700 804,294 Ulticom* .................. 15,600 530,887 ------------ 1,650,881 ------------ COMPUTER HARDWARE/ PERIPHERALS -- 6.2% Adaptec* .................. 115,900 1,184,353 Compaq Computer ........... 63,700 958,685 Creative Technology (Singapore) ............ 116,700 1,294,641 Electronics for Imaging* .. 75,600 1,056,037 Lexmark International* .... 43,200 1,914,300 Mobility Electronics* ..... 2,100 5,250 NVIDIA* ................... 12,100 397,787 Tektronix ................. 49,100 1,654,056 ------------ 8,465,109 ------------ Shares Value -------- --------- COMPUTER SOFTWARE -- 18.7% Agilent Technologies* ..... 33,900 $ 1,856,025 Autodesk .................. 87,900 2,365,059 Check Point Software Technologies* (Israel) 15,800 2,110,781 Computer Associates International .......... 52,500 1,023,750 Kana Communications* ...... 38,300 434,466 Macromedia* ............... 41,500 2,519,828 Microsoft* ................ 51,700 2,244,103 Parametric Technology* .... 89,400 1,204,106 Peregrine Systems* ........ 59,900 1,181,153 Rational Software* ........ 47,900 1,863,609 Remedy* ................... 34,600 573,062 Symantec* ................. 108,450 3,609,352 Synopsys* ................. 78,900 3,740,353 Vignette* ................. 39,100 709,909 ------------ 25,435,556 ------------ ELECTRONIC COMPONENTS -- 3.8% Amphenol* (Class A) ....... 19,700 771,994 Arrow Electronics* ........ 46,900 1,342,512 CoorsTek* ................. 18,100 566,191 CTS ....................... 15,800 575,712 Entegris* ................. 78,600 599,325 Solectron* ................ 15,500 525,450 Vishay Intertechnology* ... 49,500 748,687 ------------ 5,129,871 ------------ - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-24 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO (continued) Shares Value ELECTRONIC MANUFACTURING ------- ------------ SERVICES -- 2.9% Jabil Circuit* ................................ 19,700 $ 499,888 SCI Systems* .................................. 124,300 3,278,413 TTM Technologies* ............................. 16,800 235,725 ------------ 4,014,026 ------------ ELECTRONICS CAPITAL EQUIPMENT -- 14.2% ATMI* ......................................... 53,100 1,035,450 Cognex* ....................................... 56,200 1,239,913 Credence Systems* ............................. 55,300 1,283,997 Electro Scientific Industries* ................ 46,700 1,306,141 KLA-Tencor .................................... 56,500 1,905,109 Lam Research* ................................. 69,000 1,004,813 Novellus Systems* ............................. 155,200 5,562,950 Orbotech* (Israel) ............................ 51,975 1,937,693 Sensormatic* .................................. 41,100 824,569 Teradyne* ..................................... 55,300 2,059,925 Veeco Instruments* ............................ 27,200 1,090,550 ------------ 19,251,110 ------------ INFORMATION SERVICES -- 7.3% Amdocs* ....................................... 7,500 496,875 Avocent* ...................................... 39,900 1,081,041 CSG Systems International ..................... 68,200 3,190,481 First Data .................................... 59,600 3,140,175 Galileo International ......................... 9,200 184,000 SunGard Data Systems* ......................... 37,200 1,753,050 ------------ 9,845,622 ------------ MEDIA -- 7.1% Charter Communications (Class A)* ................................. 75,600 1,717,537 Clear Channel Communications* ............................ 105,098 5,090,684 CNET Networks* ................................ 2,313 37,008 Comcast (Class A)* ............................ 49,500 2,065,078 Time Warner ................................... 13,000 679,120 ------------ 9,589,427 ------------ SEMICONDUCTORS -- 22.6% Advanced Micro Devices* ....................... 84,500 1,167,156 Alliance Semiconductor* ....................... 18,300 207,019 Amkor Technology* ............................. 188,500 2,927,641 Analog Devices* ............................... 79,300 4,059,169 ASAT Holdings (ADRs)* (Hong Kong) ................................ 28,900 145,403 ASE Test* (Taiwan) ............................ 25,000 214,063 Shares or Principal Amount Value ------------ --------- SEMICONDUCTORS (continued) Atmel* ........................................ 82,800 shs. $ 965,137 C-Cube Microsystems* .......................... 69,600 841,725 Commerce One* ................................. 27,700 702,887 Cypress Semiconductor* ........................ 89,200 1,756,125 Dallas Semiconductor .......................... 72,700 1,862,937 Exar* ......................................... 9,900 306,591 Fairchild Semiconductor International* ............................. 67,800 978,862 Integrated Device Technology* ................. 104,100 3,432,047 International Rectifier* ...................... 37,600 1,128,000 Lattice Semiconductor* ........................ 189,000 3,466,969 Linear Technology ............................. 13,800 637,819 Maxim Integrated Products* .................... 9,900 473,034 micrel* ....................................... 9,700 326,466 Microchip Technology* ......................... 115,799 2,543,959 Silicon Storage Technology* ................... 59,100 699,966 Taiwan Semiconductor Manufacturing* (ADRs) (Taiwan) ................................... 39,600 683,100 United Microelectronics* (ADRs) (Taiwan) ................................... 39,600 326,700 Xilinx* ....................................... 17,900 828,994 ------------ 30,681,769 ------------ Total Common Stocks (Cost $141,757,732) ........................ $120,956,260 REPURCHASE AGREEMENT -- 10.1% (Cost $13,700,000) State Street Bank & Trust, 5 3/4%, dated 12/29/00, maturing 1/2/01, collateralized by: $13,175,000 US Treasury Notes 7 1/2%, 5/15/04, with a fair market value of $14,113,719................................. $13,700,000 13,700,000 ------------ Total Investments -- 99.2% (Cost $155,457,732) ........................ 134,656,260 Other Assets Less Liabilities -- 0.8% ........................ 1,067,150 ------------ Net Assets -- 100.0% .......................... $135,723,410 ============ - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-25 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 94.6% BUILDING AND CONSTRUCTION -- 0.5% Dycom Industries* .............. 2,200 $ 79,062 ---------- BUSINESS GOODS AND SERVICES -- 3.7% Copart* ........................ 10,100 217,466 CoStar Group* .................. 4,760 112,009 Intranet Solutions* ............ 2,000 101,688 MatrixOne ...................... 6,100 110,754 Veritas DGC* ................... 2,500 80,750 ---------- 622,667 ---------- COMPUTER SOFTWARE AND SERVICES -- 20.2% Actuate* ....................... 19,200 367,800 Advent Software* ............... 10,200 408,956 Aspen Technology* .............. 5,300 175,231 Documentum* .................... 10,500 521,391 Henry (Jack) & Associates ...... 2,900 180,072 Informatica* ................... 1,900 75,109 Information Holdings* .......... 300 7,031 InterCept Group* ............... 1,900 50,409 Internet Securities Systems* ... 7,700 603,728 Interwoven* .................... 1,700 112,041 NetIQ .......................... 1,800 157,219 NYFIX* ......................... 2,237 54,038 Quest Software* ................ 4,200 117,994 SmartForce (ADRs)* (Ireland) ... 3,200 120,100 SunGard Data Systems* .......... 5,700 268,613 THQ * .......................... 5,150 125,692 WatchGuard Technologies* ....... 1,600 50,600 Western Digital* ............... 19,700 48,019 ---------- 3,444,043 ---------- CONSULTING SERVICES -- 3.1% Corporate Executive Board* ..... 4,100 162,206 Forrester Research* ............ 5,555 277,924 Resource Connection* ........... 2,300 43,772 Watson Wyatt (Class A)* ........ 2,100 49,350 ---------- 533,252 ---------- CONSUMER GOODS AND SERVICES -- 3.4% Brinker International* ......... 3,900 164,775 MemberWorks* ................... 7,880 167,696 MSC Industrial Direct (Class A)* 7,900 142,694 Pre-Paid Legal Services* ....... 3,800 96,900 ---------- 572,065 ---------- DRUGS AND HEALTH CARE -- 19.2% AmeriSource Health (Class A)* .. 2,200 $ 111,100 Array BioPharma* ............... 5,900 52,916 Barr Laboratories* ............. 5,500 401,156 Bergen Brunswig (Class A) ................... 6,800 107,644 Bindley Western Industries ..... 3,000 124,687 Caremark Rx* ................... 13,600 184,450 Charles River Laboratories* International . 6,800 186,150 Community Health Systems* ...... 8,900 311,500 Elan (ADRs)*(Ireland) .......... 1,203 56,315 King Pharmaceuticals* .......... 4,450 230,009 MediChem Life Sciences* ........ 8,200 37,156 Medicis Pharmaceutical (Class A)* .................. 1,600 94,600 Novoste* ....................... 2,600 71,338 PolyMedica* .................... 3,800 125,875 PRAECIS Pharmaceuticals* ....... 7,600 221,350 Priority Healthcare (Class B)* .................. 7,500 304,922 Province Healthcare* ........... 7,100 279,341 Tanox* ......................... 4,500 176,344 Universal Health Services (Class B)* .................. 1,700 189,975 ---------- 3,266,828 ---------- ELECTRONICS -- 0.5% Advanced Power Technology* ..... 2,700 33,581 Amerigon* ...................... 25,518 53,827 ---------- 87,408 ---------- ENERGY -- 0.8% Pride International* ........... 5,500 135,438 ---------- ENVIRONMENTAL MANAGEMENT -- 2.2% Waste Connections* ............. 11,200 369,950 ---------- FINANCIAL SERVICES -- 7.1% Affiliated Managers Group* ..... 4,700 257,912 American Capital Strategies .... 10,700 271,847 AmeriCredit* ................... 6,100 166,225 Fidelity National Financial .... 1,000 36,937 Metris Companies ............... 17,850 469,678 ---------- 1,202,599 ---------- - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-26 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO (continued) Shares Value LEISURE AND ENTERTAINMENT -- 1.0% Anchor Gaming* ............................. 2,100.00 $ 82,097 Station Casinos* ........................... 5,600 83,650 ----------- 165,747 ----------- MEDIA AND BROADCASTING -- 2.7% Charter Communications (Class A)* .............................. 9,300 211,284 Cox Radio (Class A)* ....................... 2,300 51,894 Entravision Communications (Class A)* .............................. 8,200 150,675 Penton Media ............................... 1,600 43,000 ----------- 456,853 ----------- MEDICAL PRODUCTS AND TECHNOLOGY -- 3.9% Cytyc* ..................................... 3,700 231,250 Endocare* .................................. 7,100 90,747 Genomic Solutions* ......................... 9,400 71,087 InterMune Pharmaceuticals* ................. 4,400 195,525 Quintiles Transnational* ................... 2,600 54,519 Specialty Laboratories* .................... 500 16,563 ----------- 659,691 ----------- NETWORKING/ COMMUNICATIONS INFRASTRUCTURE -- 0.1% REMEC* ..................................... 1,900 18,406 ----------- RESOURCES -- 2.9% Mitchell Energy & Development (Class A) ............................... 2,700 165,375 National-Oilwell* .......................... 2,700 104,456 Spinnaker Exploration* ..................... 5,500 233,750 ----------- 503,581 ----------- SCHOOLS -- 2.3% Career Education* .......................... 7,600 293,075 Corinthian Colleges ........................ 2,800 106,312 ----------- 399,387 ----------- Shares or Principal Amount Value ----------- ----------- TELECOMMUNICATIONS -- 19.6% AirGate PCS* ............................... 7,500 shs.$ 265,781 Allegiance Telecom* ........................ 6,100 136,106 Dobson Communications (Class A)* .............................. 4,600 67,275 Metawave Communications* ................... 9,960 91,508 Powertel* .................................. 7,100 439,978 Price Communications* ...................... 7,800 131,137 Proxim* .................................... 15,400 661,719 Rural Cellular (Class A)* .................. 9,540 282,324 SBA Communications* ........................ 10,000 410,625 West TeleServices* ......................... 5,900 166,306 Western Wireless (Class A)* ................ 17,400 682,406 ----------- 3,335,165 ----------- TRANSPORTATION -- 1.4% Expeditors International of Washington ........................... 3,100 167,109 SkyWest .................................... 2,300 66,341 ----------- 233,450 ----------- Total Common Stocks (Cost $14,294,400) ...................... 16,085,592 REPURCHASE AGREEMENT -- 10.0% (Cost $1,700,000) State Street Bank & Trust, 5 3/4%, dated 12/29/2000, maturing 1/2/2001, collateralized by: $1,685,000 US Treasury Notes 5 1/2%, 2/15/2008, with a fair market value of $1,751,370 ........................... $1,700,000 1,700,000 ----------- Total Investments -- 104.6% (Cost $15,994,400) ...................... 17,785,592 Other Assets Less Liabilities -- (4.6)% .............. (774,362) ----------- Net Assets -- 100.0% ....................... $17,011,230 =========== - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-27 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 92.3% BRAZIL -- 1.1% Empresa Brasileira de Aeronautica "Embraer" (ADRs) (Manufacturing) .... 2,300 $ 91,425 CANADA -- 3.3% Manulife Financial (Financial Services) ...... 2,200 68,846 Research In Motion* (Telecommunications) ...... 1,600 128,600 Sun Life Financial Services (Financial Services) ...... 3,000 79,984 -------- 277,430 -------- DENMARK -- 2.0% Neg Micon (Electronics) ...... 500 29,587 Novo Nordisk (B Shares) (Drugs and Health Care) ... 300 53,823 Vestas Wind Systems* (Electronics) ............. 1,500 81,206 -------- 164,616 -------- FINLAND -- 1.9% Nokia (Telecommunications) ... 3,600 160,569 -------- FRANCE -- 8.0% Alcatel (Telecommunications) . 900 51,128 Aventis (Drugs and Health Care) .............. 1,400 122,915 EADS (Manufacturing) ......... 2,500 55,542 Groupe Danone (Consumer Goods and Services) ....... 800 120,643 Renault (Automotive and related) .............. 1,100 57,326 Societe Television Francaise 1 "TF1" (Media) ............. 1,000 53,992 Suez Lyonnaise des Eaux (Electronics) ............. 500 91,318 Total Fina (ADRs) (Resources) ............... 1,600 116,300 -------- 669,164 -------- GERMANY -- 4.7% Allianz (Financial Services) . 300 112,285 Daimler Chrysler (Automotive and Related) .............. 700 28,840 Shares Value -------- -------- GERMANY (continued) Deutsche Telekom (Telecommunications) ...... 2,700 $ 81,383 Lufthansa (Transportation) ... 2,350 60,572 Munich Re (Financial Services) 300 107,345 -------- 390,425 -------- HONG KONG -- 2.5% China Telecom (Hong Kong)* (Telecommunications) ...... 10,000 54,617 HSBC Holdings (Financial Services) ................. 8,400 124,928 Li & Fung (Consumer Goods and Services) ............. 16,000 29,027 -------- 208,572 -------- IRELAND -- 2.6% Bank of Ireland (Financial Services) ................. 8,400 84,239 Elan (ADRs)* (Drugs and Health Care) .............. 2,000 93,625 Ryanair Holdings (ADRs)* (Transportation) .......... 620 34,507 -------- 212,371 -------- ISRAEL -- 0.6% CardGuard Scientific Survival* (Medical Products and Technology) ............... 700 45,345 -------- ITALY -- 4.1% Assicurazioni Generali (Financial Services) ...... 2,900 115,187 Banca Nazionale del Lavoro "BNL"* (Financial Services) 25,200 77,377 Bulgari (Manufacturing) ...... 5,000 61,505 Telecom Italia (Telecommunications) ...... 7,900 87,385 -------- 341,454 -------- JAPAN -- 6.9% Chugai Pharmaceutical (Drugs and Health Care) .......... 2,000 33,240 Fast Retailing (Retailing) ... 300 58,730 JSAT (Telecommunications) .... 4 23,828 Keyence (Electronics) ........ 100 24,492 Kyocera (Electronics) ........ 400 43,632 - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-28 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued) Shares Value -------- --------- JAPAN (continued) Matsushita Electric Industrial (Electronics) ................. 2,000 $ 47,761 Meitec (Computer and Technology Related) ........... 1,100 35,217 Murata Manufacturing (Electronics) ................. 500 58,607 Nippon Telegraph & Telephone "NTT" (Telecommunications) .... 7 50,394 Nomura Securities (Financial Services) ..................... 1,300 23,369 NTT Mobile Communication Network "NTT DoCoMo" (Telecommunications) .......... 2 34,465 Promise (Financial Services) ..... 400 28,341 Shiseido (Consumer Goods and Services) ................. 4,000 44,612 Sony (Consumer Staples) .......... 1,000 69,104 -------- 575,792 -------- MEXICO -- 2.0% Grupo Television (Series A) (ADRs) (Media) ....................... 1,800 80,888 Telefonos de Mexico (ADRs) (Telecommunications) .......... 1,900 85,737 -------- 166,625 -------- NETHERLANDS -- 5.7% Akzo Nobel (Manufacturing) ....... 2,600 139,648 Elsevier (Media) ................. 4,500 66,171 ING Groep (Financial Services) ... 732 58,480 Koninklijke Numico (Consumer Goods and Services) ........... 1,150 57,880 Koninklijke (Royal) Philips Electronics (Electronics) ..... 1,544 56,572 Unilever (ADRs) (Consumer Staples) ............ 1,500 94,406 -------- 473,157 -------- NORWAY -- 0.9% Tomra Systems (Business Goods and Services) ................. 4,040 78,524 -------- SPAIN -- 2.0% Banco Santander Central Hispano (Financial Services) ..................... 5,900 63,157 Shares Value -------- -------- SPAIN (continued) Grupo Auxiliar Metalurgico "Gamesa"* (Manufacturing) ..... 100 $ 2,404 Telefonica* (Telecommunications) .......... 6,300 104,116 -------- 169,677 -------- SWEDEN -- 0.1% L.M. Ericsson Telefon (Series B) (Telecommunications) .......... 820 9,339 Syngenta (Medical Products and Technology) ............... 31 1,662 -------- 11,001 -------- SWITZERLAND -- 4.9% Credit Suisse Group (Financial Services) .......... 575 109,260 Novartis (Medical Products and Technology) ............... 100 176,754 Phonak Holding (Medical Products and Technology) ...... 30 124,190 -------- 410,204 -------- UNITED KINGDOM -- 7.3% BAA (Transportation) ............. 6,170 57,017 Centrica (Utilities) ............. 16,800 65,126 CMG (Computer and Technology Related) ........... 1,900 25,428 Diageo (Retailing) ............... 9,300 104,297 P & O Princess Cruise (Consumer Goods and Services) ........... 129 546 SmithKline Beecham (Consumer Goods and Services) ........... 1,979 55,929 Tesco (Retailing) ................ 20,000 81,569 Vodafone Group (Telecommunications) .......... 43,800 160,788 WPP Group (Media) ................ 4,500 58,675 -------- 609,375 -------- UNITED STATES -- 30.7% AES* (Utilities) ................. 800 44,300 America Online* (Telecommunications) .......... 3,400 118,320 Analog Devices* (Computer and Technology Related) ........... 3,700 189,394 AT&T (Telecommunications) ........ 8,300 143,694 - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-29 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL GROWTH PORTFOLIO (continued) Shares Value -------- --------- UNITED STATES (continued) Brocade Communications Systems* (Telecommunications) ................... 1,400 $ 128,494 Cisco Systems* (Computer and Technology Related) .................... 2,600 99,450 Citigroup (Financial Services) ............ 2,733 139,554 Coca-Cola (Consumer Goods and Services) .......................... 2,400 146,250 Guidant* (Drugs and Health Care) ........................... 2,600 140,237 IDEC Pharmaceuticals* (Medical Products and Technology) ............... 600 113,719 Openwave Systems* (Telecommunications) ................... 1,527 72,676 Pfizer (Drugs and Health Care) ............ 2,700 124,200 Philip Morris (Tobacco) ................... 2,700 118,800 Procter & Gamble (Consumer Goods and Services) .................... 1,500 117,656 Redback Networks* (Computer and Technology Related) ................ 1,200 49,162 SBC Communications (Telecommunications) ................... 3,000 143,250 Siebel Systems* (Computer and Technology Related) .................... 800 54,075 Symbol Technologies (Computer and Technology Related) ................ 3,900 140,400 Tyco International (Diversified) .......... 3,300 183,150 Shares Value ---------- ---------- UNITED STATES (continued) VeriSign* (Computer and Technology Related) .................... 900 $ 66,712 Waters* (Electronics) ..................... 1,100 91,850 Watson Pharmaceuticals* (Drugs and Health Care) ....................... 2,700 138,207 ---------- 2,563,550 ---------- Total Common Stocks (Cost $7,363,636) ...................... 7,619,276 ---------- PREFERRED STOCKS -- 1.9% GERMANY -- 0.9% Hugo Boss (Retailing) ..................... 300 84,510 Porsche (non-voting)* (Automotive and Related) ........................... 23 75,050 ---------- Total Preferred Stocks (Cost $128,384) ........................ 159,560 ---------- Total Investments -- 93.2% (Cost $7,492,020) ...................... 7,778,836 Other Assets Less Liabilities -- 6.8% ............... 568,983 ---------- Net Assets -- 100.0% ...................... $8,347,819 ========== - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO Shares Value ---------- ---------- COMMON STOCKS -- 91.8% AUSTRALIA -- 3.0% BRL Hardy (Consumer Goods and Services) .......................... 8,054 $ 35,524 Cochlear (Medical Products and Technology) ........................ 3,500 71,031 CSL (Medical Products and Technology) ............................ 2,850 61,933 Data Advantage (Business Services) .............................. 11,900 37,406 Energy Development (Resources) ............................ 5,468 38,623 Shares Value ---------- ---------- AUSTRALIA (continued) Futuris (Automotive Parts Manufacturing) .......................... 29,160 $ 29,202 Lang (Transportation) ..................... 6,200 39,037 Perpetual Trustees Australia (Financial Services) ................... 2,100 39,807 Sonic Healthcare (Medical Products and Technology) ............... 8,400 40,939 TAB (Leisure and Hotels) .................. 20,800 36,579 ---------- 430,081 ---------- - ------------------ * Non-income producing security. See Notes to Financial Statements. --P-30 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value -------- -------- CANADA -- 0.8% Clarica Life Insurance (Financial Services) ........ 700 $ 19,573 EXFO Electro-Optical Engineering (Telecommunications) ........ 800 20,975 Intrawest (Leisure and Hotels) . 1,600 31,727 Rio Alto Exploration (Resources) ................. 500 10,864 Sierra Wireless (Telecommunications) ........ 800 38,392 -------- 121,531 -------- DENMARK -- 0.9% TK Development (Construction and Property) ............... 3,960 129,628 -------- FINLAND -- 0.4% Rapala Normark (Leisure and Hotels) ..................... 14,300 56,396 -------- FRANCE -- 3.0% Du Pareil au Meme (Retailing) .. 887 37,480 Etam Developpement* (Retailing) ................. 1,493 13,178 L'Europeenne d'Extincteurs (Manufacturing) ............. 1,242 36,853 Financiere Marc de Lacharriere "Fimalac" (Manufacturing) ... 1,900 64,014 Royal Canin (Consumer Goods and Services) ............... 569 60,909 Technip (Construction and Property) ................... 800 116,136 Transiciel (Computer Software) . 2,940 105,181 -------- 433,751 -------- GERMANY -- 6.8% Beru (Automotive Parts Manufacturing) .............. 5,543 197,786 Bien-Haus (Construction and Property) ................... 1,110 10,944 Dino Entertainment (Media) ..... 1,000 4,367 Intershop Communications* (Computer Software) ......... 2,800 88,078 Mediclin (Drugs and Health Care) ................ 18,000 238,318 Rational Software (Business Services) ................... 1,170 78,550 Shares Value -------- -------- GERMANY (continued) Tecis Holding* (Financial Services) ................... 3,740 $242,318 Zapf Creation* (Manufacturing) . 2,600 112,305 -------- 972,666 -------- HONG KONG -- 1.9% Cafe de Coral Holdings (Restaurants) ............... 46,000 19,610 Beijing Datang Power Generation (Utilities) ...... 64,000 16,616 Dah Sing Financial Group (Financial Services) ........ 10,400 56,135 Esprit Holdings (Retailing) .... 16,000 13,641 Giordano International (Retailing) ................. 48,000 22,155 JCG Holdings (Financial Services) ................... 48,000 23,078 Johnson Electric Holdings (Electronics) ............... 10,000 15,449 Li & Fung (Consumer Goods and Services) ............... 8,800 15,965 Mandarin Oriental International (Leisure and Hotels) ........ 43,200 28,080 Shaw Brothers (Media) .......... 16,000 12,411 South China Morning Post Holdings (Media) ............ 34,000 25,065 Yanzhou Coal Mining (Series H) (Resources) ...... 100,000 27,245 -------- 275,450 -------- IRELAND -- 1.5% Elan (ADRs)* (Drugs and Health Care) ..... 447 20,925 Ryanair Holdings* (Transportation) ............ 13,160 142,108 SmartForce Group (ADRs) (Computer Software) ......... 1,300 48,791 -------- 211,824 -------- JAPAN -- 9.4% Able (Consumer Goods and Services) ................... 1,000 6,377 Anritsu (Electronics) .......... 500 11,809 Asahi Pretec (Industrial Goods and Services) ............... 2 29,566 Asatsu-DK (Advertising) ........ 800 19,244 - ------------------ * Non-income producing security. See Notes to Financial Statements. -- P-31 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value -------- --------- JAPAN (continued) Bank of Iwate (Financial Services) ................. 1,000 $ 34,377 Capcom (Computer Software) ... 600 20,784 Citizen Electronics (Electronics) ............. 500 24,930 Cresco (Technology) .......... 300 14,433 Densei Lambda (Electronics) .. 1,900 39,556 Don Quijote (Leisure and Hotels) ............... 200 16,970 Doutor Coffee (Restaurants) .. 100 6,823 The Eighteenth Bank (Financial Services) ................. 7,000 27,677 Enplas (Electronics) ......... 800 27,292 Fuji Machine Manufacturing (Industrial Goods and Services) ............. 500 13,383 Fuji Seal (Manufacturing) .... 1,800 48,495 Fujicco (Consumer Goods and Services) ............. 3,000 35,296 Fujitec (Construction and Property) ................. 3,000 14,564 H.I.S. (Liesure and Hotel) ... 2,300 41,043 Higo Bank (Financial Services) 8,000 29,251 Hokuto (Consumer Goods and Services) ............. 1,200 41,672 Iyo Bank (Financial Services) 5,000 27,248 Kissei Pharmaceutical (Drugs and Health Care) .......... 3,000 59,307 Komatsu Seiren (Manufacturing) ........... 800 1,833 Maspro Denkoh (Telecommunications) ...... 2,000 17,845 Meitec (Computer Software) ... 600 19,209 Mitsubishi Gas Chemical (Chemicals) ............... 12,000 36,214 MKC-STAT (Computer Software) ................. 3,000 35,427 Moshi Moshi Hotline (Business Services) ................. 400 34,920 Nichicon (Manufacturing) ..... 1,300 17,967 Nifco (Industrial Goods and Services) ............. 3,000 28,079 Nippon Broadcasting Systems (Media) ................... 1,000 37,789 Noritake (Consumer Goods and Services) ............. 6,000 32,173 People (Leisure and Hotels) .. 500 31,053 Shares Value ---------- ---------- JAPAN (continued) Plenus (Retailing) ........... 1,000 $ 32,190 Rengo (Paper and Printing) ... 9,000 33,144 Rohto Pharmaceutical (Drugs and Health Care) .......... 2,000 25,192 Ryoyo Electro (Electronics) .. 2,000 23,093 Shimachu (Retailing) ......... 2,000 23,618 Sotec (Business Services) .... 4 28,691 Sundrug (Retailing) .......... 100 3,237 Taiyo Ink Manufacturing (Chemicals) ............... 1,000 39,538 Tokyo Style (Manufacturing) .. 4,000 36,669 Touei Housing (Construction and Property) ............. 2,000 24,493 Tsubaki Nakashima (Manufacturing) ........... 3,000 26,898 Tsudakoma* (Manufacturing) ... 14,300 13,885 Tsuruha (Drugs and Health Care) .............. 1,900 23,600 Tsutsumi Jewelry (Retailing) . 1,800 24,421 Universal Home (Business Services) ................. 3 10,825 Ushio (Industrial Goods and Services) ............. 2,000 32,628 Xebio (Retailing) ............ 1,600 26,312 Yamaichi Electronics (Electronics) ............. 1,000 14,538 Yokohama Reito (Distribution) 4,000 20,854 ---------- 1,346,432 ---------- NETHERLANDS -- 0.9% Beter Bed Holding (Retailing) 3,117 32,049 IFCO Systems (Retailing) ..... 3,500 13,968 Unique International (Consulting Services) ..... 3,800 85,637 ---------- 131,654 ---------- NEW ZEALAND -- 0.1% Baycorp Holdings (Financial Services) ................. 2,500 13,422 ---------- NORWAY -- 1.1% Petroleum Geo-Services* (Industrial Goods and Services) ............. 4,713 62,141 Tandberg Television* (Telecommunications) ...... 13,740 92,924 ---------- 155,065 ---------- - ------------------- * Non-income producing security. See Notes to Financial Statements. -- P-32 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value -------- --------- SINGAPORE -- 0.6% Keppel Telecommunications & Transportation (Telecommunications)........... 20,000 $ 13,626 Neptune Orient Lines (Transportation)............... 24,937 19,581 Sembcorp Logistics (Transportation)............... 7,000 38,799 Venture Manufacturing (Electronics).................. 1,500 10,046 ---------- 82,052 ---------- SPAIN -- 0.7% Baron de Ley (Retailing).......... 1,700 31,926 Enaco * (Retailing)............... 7,600 38,465 TelePizza* (Restaurants).......... 12,794 30,274 ---------- 100,665 ---------- SWEDEN -- 0.7% Cell Network (Telecommunications)........... 10,611 19,673 Finnveden (Series B) (Manufacturing)................ 6,281 50,905 Munskjo (Paper and Printing)...... 4,161 25,789 ---------- 96,367 ---------- SWITZERLAND -- 5.4% EMTS Technologies (Technology)................... 1,110 75,328 Kaba Holding (Business Services)...................... 100 145,598 Selecta Group (Consumer Goods and Services)............ 522 127,207 SEZ Holding (Manufacturing)....... 253 150,054 Swisslog Holding (Industrial Goods and Services)............ 621 272,016 ---------- 770,203 ---------- UNITED KINGDOM -- 9.5% Ashtead Group (Construction and Property).................. 76,600 140,884 BTG (Technology).................. 7,023 154,372 Clinton Cards (Retailing)......... 46,200 72,537 Druck Holdings (Industrial Goods and Services)............ 11,500 32,019 F.I. Group (Computer Software).... 45,176 183,065 Shares Value ---------- ---------- UNITED KINGDOM (continued) Games Workshop Group (Retailing).................... 9,400 $ 18,975 GWR Group (Media)................. 11,000 106,914 Parity (Computer Software)........ 75,936 132,850 PizzaExpress (Restaurants)........ 19,500 185,447 Tilbury Douglas (Construction and Property).................. 25,500 186,838 Trifast (Electrical Distribution). 32,000 94,599 Trinity International Holdings (Media)........................ 7,100 48,438 ---------- 1,356,938 ---------- UNITED STATES -- 45.1% Actuate* (Computer Software)...... 7,800 149,419 Advanced Power Technology* (Electronics).................. 1,100 13,681 Advent Software* (Computer Software)...................... 3,900 156,366 Affiliated Managers Group* (Business Services)............ 1,900 104,262 AirGate PCS* (Telecommunications)........... 3,000 106,312 Allegiance Telecom* (Telecommunications)........... 2,300 51,319 American Capital Strategies (Financial Services)........... 4,100 104,166 AmeriCredit* (Financial Services)...................... 2,400 65,400 Amerigon* (Electronics)........... 9,920 20,925 AmeriSource Health (Class A)* (Drugs and Health Care)........ 900 45,450 Anchor Gaming* (Leisure and Hotels).................... 1,200 46,912 Array BioPharma* (Drugs and Health Care)................... 2,200 19,731 Aspen Technology* (Computer Software)...................... 2,100 69,431 Barr Laboratories* (Drugs and Health Care)................... 2,200 160,462 Bergen Brunswig (Class A) (Drugs and Health Care)........ 2,800 44,324 Bindley Western Industries (Drugs and Health Care)........ 1,200 49,875 Brinker International* (Restaurants).................. 1,500 63,375 Career Education* (Schools)....... 3,100 119,544 - ----------------- * 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 -------- --------- UNITED STATES (continued) Caremark Rx* (Drugs and Health Care).................... 5,400 $ 73,237 Charles River Laboratories Intl.* (Drugs and Health Care)......... 2,700 73,912 Charter Communications (Class A)* (Media).............. 3,700 84,059 Community Health Systems* (Medical Products and Technology)................. 3,500 122,500 Copart* (Retailing)................ 3,900 83,972 Corinthian Colleges* (Schools)..... 1,000 37,969 Corporate Executive Board* (Consulting Services)........... 1,600 63,300 CoStar Group* (Industrial Goods and Services)............. 1,800 42,356 Cox Radio (Class A)* (Media)....... 900 20,306 Cytyc* (Drugs and Health Care).................... 1,300 81,250 Dobson Communications (Class A)* (Telecommunications)............ 1,800 26,325 Documentum* (Computer Software)....................... 4,300 213,522 Dycom Industries* (Telecommunications)............ 900 32,344 Endocare* (Medical Products and Technology)................. 2,700 34,509 Entravision Communications* (Media)......................... 3,300 60,637 Expeditors International of Washington (Transportation)..... 1,200 64,687 Fidelity National Financial (Financial Services)............ 400 14,775 Forrester Research* (Consulting Services)........... 2,185 109,318 Genomic Solutions* (Medical Products and Technology)........ 4,000 30,250 Henry (Jack) & Associates (Business Services)............. 1,100 68,303 Informatica* (Computer Software)....................... 800 31,625 Information Holdings* (Media)...... 100 2,344 InterCept Group* (Electronics)..... 800 21,225 InterMune Pharmaceuticals (Drugs and Health Care)......... 1,900 84,431 Shares Value -------- -------- UNITED STATES (continued) Internet Security Systems* (Computer Software)............. 3,000 $235,219 IntraNet Solutions* (Internet/Online)............... 800 40,675 Interwoven* (Computer Software)....................... 700 46,134 King Pharmaceuticals* (Drugs and Health Care)................ 1,800 93,038 MatrixOne* (Computer Software)....................... 2,400 43,575 MediChem Life Sciences* (Drugs and Health Care)......... 3,200 14,500 Medicis Pharmaceutical (Class A)* (Drugs and Health Care).................... 700 41,388 MemberWorks* (Consumer Goods and Services)............. 3,100 65,972 Metawave Communications* (Telecommunications)............ 4,020 36,934 Metris Companies (Financial Services)....................... 6,950 182,872 Microcell Telecommunications (Class B) (Telecommunications)............ 1,100 20,866 Mitchell Energy & Development (Class A) (Resources)........... 1,000 61,250 MSC Industrial Direct* (Retailing)..................... 3,100 55,994 National-Oilwell* (Resources)...... 1,000 38,687 NetIQ* (Computer Software)......... 700 61,141 Novoste* (Drugs and Health Care).................... 1,100 30,181 NYFIX* (Business Services)......... 907 21,910 Penton Media (Advertising)......... 600 16,125 PolyMedica* (Drugs and Health Care).................... 1,500 49,688 Powertel* (Telecommunications)............ 3,000 185,906 PRAECIS Pharmaceuticals* (Drugs and Health Care)......... 3,100 90,288 Pre-Paid Legal Services* (Consumer Goods and Services)................... 1,500 38,250 Price Communications* (Telecommunications)............ 2,900 48,756 Pride International* (Resources)..................... 2,100 51,713 Priority Healthcare (Class B)* (Drugs and Health Care)......... 3,200 130,100 - --------------------- * Non-income producing security. See Notes to Financial Statements. -- p-34 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL SMALLER COMPANIES PORTFOLIO (continued) Shares Value -------- --------- UNITED STATES (continued) Province Healthcare* (Drugs and Health Care).............. 2,850 $ 112,130 Proxim* (Telecommunications)............ 6,500 279,297 Quest Software* (Computer Software)............................ 1,700 47,759 Quintiles Transnational* (Medical Products and Technology).......................... 1,000 20,969 REMEC* (Technology)..................... 800 7,750 Resources Connection* (Consulting Services)................ 900 17,128 Rural Cellular (Class A)* (Telecommunications)................. 3,800 112,456 SBA Communications* (Telecommunications)................. 3,900 160,144 SkyWest (Transportation)................ 900 25,959 SMTC* (Electronics)..................... 6,400 87,400 Specialty Laboratories* (Medical Products and Technology)...................... 200 6,625 Spinnaker Exploration* (Resources).......................... 2,200 93,500 Station Casinos* (Leisure and Hotels).......................... 2,200 32,863 SunGard Data Systems* (Computer Software).................. 2,300 108,388 Tanox* (Drugs and Health Care)......................... 1,800 70,538 THQ* (Computer Software)................ 1,950 47,592 Universal Health Services (Class B)* (Drugs and Health Care)......................... 700 78,225 Shares Value -------- --------- UNITED STATES (continued) VERITAS DGC* (Business Services)............................ 1,000 $ 32,300 Waste Connections* (Industrial Goods and Services).................. 4,400 145,338 WatchGuard Technologies* (Computer Software).................. 600 18,975 Watson Wyatt (Class A)* (Consulting Services)................ 800 18,800 West TeleServices* (Telecommunications)................. 2,300 64,831 Western Digital (Computer Software)............................ 7,800 19,013 Western Wireless (Class A)* (Telecommunications)................. 7,100 278,453 ----------- 6,455,705 ----------- Total Common Stocks (Cost $11,705,005)................... 13,139,830 PREFERRED STOCKS -- 0.2% (Cost $159,166) GERMANY -- 0.2% Sixt (Retailing)........................ 2,782 25,862 ----------- Total Investments -- 92.0% (Cost $11,864,171)................... 13,165,692 Other Assets Less Liabilities -- 8.0%............. 1,144,072 ----------- Net Assets -- 100.0%.................... $14,309,764 =========== - -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 85.0% DENMARK -- 5.9% GN Store Nord (Telecommunications)................. 39,800 $ 696,509 Masconomy (Computer Software)........... 48,500 341,947 Vestas Wind Systems (Telecommunications)................. 12,300 665,890 ----------- 1,704,346 ----------- Shares Value -------- --------- FINLAND -- 5.1% Comptel* (Telecommunications)........... 34,300 $ 494,388 Nokia (Telecommunications).............. 13,000 579,832 Nokia (ADRs) (Telecommunications)................. 3,100 134,850 TietoEnator (Information Services)...... 8,500 241,839 ----------- 1,450,909 ----------- - ---------------- * Non-income producing security. See Notes to Financial Statements. -- p-35 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued) Shares Value -------- --------- FRANCE -- 9.0% ActivCard (ADRs)* (Computer Hardware/Peripherals) .................... 9,500 $ 124,984 Alcatel (Telecommunications) ................ 2,487 141,285 Altran Technologies (Information Services) ................................ 7,060 1,597,671 Business Objects (ADRs)* (Computer Software) ...................... 5,600 317,275 Cap Gemini (Information Services) ........... 2,600 419,432 ---------- 2,600,647 ---------- GERMANY -- 2.4% Aixtron* (Electronics Capital Equipment) ............................... 6,310 686,125 ---------- HONG KONG -- 1.4% ASAT Holdings (ADRs)* (Electronics Capital Equipment) ....................... 2,700 13,584 China Mobile (Hong Kong)* (Telecommunications) ..................... 71,000 387,784 ---------- 401,368 ---------- ISRAEL--2.9% AudioCodes* (Telecommunications) ..................... 3,000 40,594 Check Point Software Technologies* (Computer Software) ...................... 2,200 293,906 Galileo Technology* (Electronics Capital Equipment) ....................... 700 9,428 Nova Measuring Instruments* (Semiconductors) ......................... 4,700 32,459 Orbotech* (Electronics Capital Equipment) ............................... 11,850 441,783 ---------- 818,170 ---------- JAPAN -- 4.7% Furukawa Electric* (Electronics) ............ 18,000 314,118 HOYA (Electronic Components) ................ 6,000 440,868 Murata Manufacturing (Electronic Components) .............................. 900 105,493 Rohm (Semiconductors) ....................... 1,000 189,818 Sumitomo Electric Industries* (Wire and Cable Products) ................... 19,000 311,459 ---------- 1,361,756 ---------- NETHERLANDS -- 1.9% Koninklijke (Royal) Philips Electronics* (Electronics Capital Equipment) ....................... 14,889 $ 545,530 ---------- PHILIPPINES -- 0.1% PSI Technologies Holdings (ADRs)* (Electronic Components) .............................. 2,500 13,125 ---------- SINGAPORE -- 0.7% Creative Technology (Computer Hardware/Peripherals) .................... 14,400 159,750 Informatics Holdings (Information Services) ................................ 70,000 32,737 ---------- 192,487 ---------- SOUTH KOREA SK Telecom (ADRs) (Telecommunications) ..................... 554 12,745 ---------- SWEDEN -- 1.5% Enea Data* (Information Services) ........... 107,300 427,427 ---------- SWITZERLAND -- 7.1% Leica Geosystems* (Information Services) ................... 2,400 740,329 Swisslog Holding* (Electronics) ............. 1,420 622,000 Unaxis Holding* (Electronics) ............... 3,050 686,810 ---------- 2,049,139 ---------- TAIWAN -- 0.3% ASE Test* (Semiconductors) .................. 11,500 98,469 ---------- UNITED KINGDOM -- 9.3% ARM Holdings (Computer Software) ............ 57,780 437,176 Dimension Data Holdings (Electronic Components) .................. 54,300 367,001 Logica (Computer and Technology Related) ...................... 19,000 497,187 Parthus Technologies (Computer and Technology Related) .................. 128,700 323,308 Spirent (Telecommunications) ................ 113,945 1,039,330 ---------- 2,664,002 ---------- - ------------------- * Non-income producing security. See Notes to Financial Statements. -- p-36 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN GLOBAL TECHNOLOGY PORTFOLIO (continued) Shares Value -------- --------- UNITED STATES -- 32.7% Alpha Industries* (Electronics) .............. 2,900 $ 108,841 Amdocs* (Information Services) ............... 3,600 238,500 Amkor Technology* (Semiconductors) .......................... 18,900 293,541 Amphenol (Class A)* (Electronic Components) ............................... 3,100 121,481 Artesyn Technologies* (Electronic Components) ............................... 13,000 209,625 Autodesk (Computer Software) ................. 7,700 207,178 Avocent* (Information Services) .............. 4,200 113,794 C-Cube Microsystems* (Semiconductors) .......................... 3,700 44,747 Cisco Systems* (Communications Infrastructure) ........................... 3,100 118,575 Cognex* (Electronics Capital Equipment) ................................ 7,800 172,088 Compaq Computer (Computer Hardware/Peripherals) ..................... 6,000 90,300 Computer Associates International (Computer Software) ....................... 9,100 177,450 Comverse Technology* (Electronic Components) ............................... 550 59,761 Corning (Telecommunications) ................. 1,500 79,219 Credence Systems* (Electronics Capital Equipment) ........................ 11,500 267,016 CSG Systems International (Information Services) .................... 5,900 276,009 CTS (Electronic Components) .................. 3,300 120,244 Dallas Semiconductor (Semiconductors) .......................... 6,100 156,313 DSP Group* (Electronics) ..................... 3,500 73,609 Electro Scientific Industries* (Electronics Capital Equipment) ........... 5,800 162,219 Electronics for Imaging* (Computer Hardware/ Peripherals) .............................. 13,600 189,975 Entegris* (Electronic Components) ............................... 7,100 54,138 First Data (Information Services) ............ 6,000 316,125 Integrated Device Technology* (Semiconductors) .......................... 8,700 286,828 Jabil Circuit* (Electronic Manufacturing Services) ................... 3,600 91,350 Kana Communications* (Electronic Components) ............................... 7,400 83,944 Lattice Semiconductor* (Semiconductors) .......................... 19,600 359,538 Shares Value -------- --------- UNITED STATES (continued) Lexmark International Group (Class A)* (Computer Hardware/Peripherals) ..................... 6,000 $ 265,875 Linear Technology (Semiconductors) .......................... 3,200 147,900 Macromedia* (Computer Software) .............. 3,900 236,803 Microchip Technology* (Semiconductors) .......................... 9,300 204,309 Novellus Systems* (Electronics Capital Equipment) ........................ 13,500 483,891 Photon Dynamics (Semiconductors) .......................... 4,400 99,138 Power-One* (Electronics Capital Equipment) ................................ 7,700 302,947 Powerwave Technologies* (Telecommunications) ...................... 4,900 286,038 Rational Software* (Computer Software) ................................. 5,800 225,656 RF Micro Devices* (Semiconductors) .......................... 9,700 266,447 SCI Systems* (Electronic Manufacturing Services) ................... 10,800 284,850 Solectron* (Electronic Components) ............................... 2,200 74,580 SunGard Data Systems* (Information Services) .................... 7,600 358,150 Symantec* (Computer Software) ................ 11,700 389,391 Synopsys* (Computer Software) ................ 10,400 493,025 Teradyne* (Electronics Capital Equipment) ................................ 6,400 238,400 TTM Technologies* (Electronic Manufacturing Services) ................... 2,200 30,869 Veeco Instruments* (Electronics Capital Equipment) ........................ 2,500 100,234 Verity* (Electronic Manufacturing Services) ................... 6,100 146,591 Vishay Intertechnology* (Electronic Components) ................... 3,600 54,450 Wind River Systems* (Computer Software) ................................. 7,400 252,294 ----------- 9,414,246 ----------- Total Investments -- 85.0% (Cost $27,233,896) ........................ 24,440,491 Other Assets Less Liabilities -- 15.0% ................. 4,329,081 ----------- Net Assets -- 100.0% ......................... $28,769,572 =========== - ------------------- * Non-income producing security. See Notes to Financial Statements. -- p-37 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO Principal Amount Value --------- --------- CORPORATE BONDS -- 82.6% AUTOMOTIVE AND RELATED -- 0.5% Diamond Triumph Automotive 9 1/4%, 4/1/2008 ............ $ 100,000 $ 73,500 ---------- BROADCASTING -- 2.1% AMFM Operating 12 5/8%, 10/31/2006 .................. 51,800 57,628 Cumulus Media 10 3/8%, 7/1/2008 .................... 200,000 161,500 Lamar Media 8 5/8%, 9/15/2007 .. 100,000 100,750 ---------- 319,878 ---------- BUSINESS SERVICES -- 2.4% Iron Age 9 7/8%, 5/1/2008 ...... 250,000 161,250 Iron Age Holding 0% (12 1/8%**), 5/1/2009 .................... 80,000 10,800 Muzak 9 7/8%, 3/15/2009 ........ 100,000 88,000 Pierce Leahy 11 1/8%, 7/15/2006 ................... 100,000 105,500 ---------- 365,550 ---------- CABLE SYSTEMS AND SATELLITE VIDEO -- 8.8% Adelphia Communications: 9 7/8%, 3/1/2007 ............ 50,000 46,875 10 7/8%, 10/1/2010 .......... 150,000 145,500 Charter Comunications Holdings 10%, 4/1/2009 ............... 135,000 131,625 Echostar DBS 9 3/8%, 2/1/2009 .. 25,000 24,375 GCI 9 3/4%, 8/1/2007 ........... 170,000 159,375 Golden Sky Systems 12 3/8%, 8/1/2006 .................... 200,000 204,000 Northland Cable Television 10 1/4%, 11/15/2007 ......... 150,000 101,250 Pegasus Comunications: 9 3/4%, 12/1/2006 ........... 25,000 23,375 12 1/2%, 8/1/2007 ........... 200,000 202,000 Rogers Cablesystems 11%, 12/1/2015 ................... 135,000 149,850 United Pan-Europe Communications: (Netherlands) 10 7/8%, 11/1/2007 .......... 70,000 46,550 11 1/4%, 11/1/2009 .......... 75,000 48,375 Principal Amount Value --------- --------- CABLE SYSTEMS AND SATELLITE VIDEO (continued) United Pan-Europe Communications 11 1/2%, 2/1/2010 ........... $ 75,000 $ 49,312 ---------- 1,332,462 ---------- CHEMICALS -- 3.8% Koppers Industry 9 7/8%, 12/1/2007 ................... 125,000 118,750 Lyondell Chemical (Series B) 9 7/8%, 5/1/2007 ............ 175,000 170,187 Lyondell Chemical 10 7/8%, 5/1/2009 .................... 125,000 117,812 Texas Petrochemicals 11 1/8%, 7/1/2006 .................... 225,000 171,000 ---------- 577,749 ---------- COMMUNICATIONS INFRASTRUCTURE -- 1.9% Crown Castle 10 3/4%, 8/1/2011 . 100,000 104,500 SpectraSite Holdings: 0% (11 1/4%**), 4/15/2009 ... 125,000 68,750 10 3/4%, 3/15/2010 .......... 125,000 116,562 ---------- 289,812 ---------- CONSUMER PRODUCTS -- 0.3% Diamond Brand Operating 10 1/8%, 4/15/2008 .......... 25,000 5,125 French Fragrances 10 3/8%, 5/15/2007 (Series B) ........ 45,000 41,175 ---------- 46,300 ---------- CONTAINERS -- 0.3% BPC Holding 13 1/4%, 6/15/2006 ................... 86,325 47,047 ---------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 1.0% MCMS 9 3/4%, 3/1/2008 @ ........ 235,000 153,925 ---------- ENERGY -- 0.5% Abraxas Petroleum 11 1/2%, 11/1/2004 ................... 75,000 67,125 ---------- - ------------------- ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. @ Represents a pay-in-kind security which may pay interest or dividends in additional bonds or shares. See Notes to Financial Statements. -- p-38 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value --------- ------- ENVIRONMENTAL SERVICES -- 1.9% Allied Waste North America 10%, 8/1/2009 .................................. $300,000 $284,250 -------- EQUIPMENT -- 1.9% Neff 10 1/4% 6/1/2008 ............................. 140,000 62,300 Williams Scotsman 9 7/8%, 6/1/2007 ....................................... 275,000 218,625 -------- 280,925 -------- FINANCIAL SERVICES -- 2.2% AMRESCO 10%, 3/15/2004 ............................ 150,000 84,750 Dollar Financial Group 10 7/8%, 11/15/2006 ..................................... 200,000 189,000 Ocwen Capital Trust I 10 7/8%, 8/1/2027 ....................................... 100,000 59,500 -------- 333,250 -------- FOOD -- 0.3% AmeriKing 10 3/4%, 12/1/2006 ...................... 75,000 30,375 Packaged Ice 9 3/4%, 2/1/2005 ..................... 15,000 11,925 -------- 42,300 -------- GAMING/HOTEL -- 3.7% Alliance Gaming 10%, 8/1/2007 ....................................... 75,000 54,375 Hollywood Casino: 13%, 8/1/2006 .................................. 25,000 26,750 11 1/4%, 5/1/2007 .............................. 150,000 155,625 Mandalay Resort Group 10 1/4%, 8/1/2007 .............................. 75,000 74,438 Station Casinos 9 7/8%, 7/1/2010 ....................................... 50,000 51,562 Trump Hotels & Casino Resorts Funding 15 1/2%, 6/15/2005 ..................... 310,000 198,400 -------- 561,150 -------- HEALTH CARE/MEDICAL PRODUCTS -- 1.3% ALARIS Medical 9 3/4%, 12/1/2006 ...................................... 135,000 54,675 Dade International 11 1/8%, 5/1/2006 ....................................... 160,000 39,200 Everest Healthcare Services 9 3/4%, 5/1/2008 ............................... 100,000 104,500 -------- 198,375 -------- Principal Amount Value --------- ------- INDUSTRIAL/ MANUFACTURING -- 2.9% AIRXCEL 11%, 11/15/2007 ........................... $215,000 $117,175 Alliance Laundry System 9 5/8%, 5/1/2008 ....................................... 150,000 117,000 Coyne International Enterprises 11 1/4%, 6/1/2008 .............................. 70,000 50,750 Day International Group 9 1/2%, 3/15/2008 ...................................... 100,000 87,000 Great Lakes Carbon 10 1/4%, 5/15/2008 ...................................... 135,000 70,537 -------- 442,462 -------- INTERNET AND RELATED -- 3.4% Exodus Communications: 11 1/4%, 7/1/2008 .............................. 225,000 201,375 11 5/8%, 7/15/2010+ ............................ 125,000 111,875 Globix 12 1/2%, 2/1/2010 .......................... 55,000 20,625 PSINet: 10%, 2/15/2005 ................................. 30,000 7,950 10 1/2%, 12/1/2006 ............................. 115,000 30,475 11 1/2%, 11/1/2008 ............................. 225,000 61,875 11%, 8/1/2009 .................................. 275,000 72,875 -------- 507,050 -------- LEISURE -- 1.4% Affinity Group Holding 11%, 4/1/2007 .................................. 250,000 209,375 -------- MOBILE SATELLITE SERVICES -- 0.2% ORBCOMM Global 14%, 8/15/2004* ..................................... 225,000 23,625 -------- PAGING -- 1.3% Metrocall: 9 3/4%, 11/1/2007 .............................. 200,000 41,000 11%, 9/15/2008 ................................. 390,000 79,950 ProNet 11 7/8%, 6/15/2005 ......................... 265,000 80,825 -------- 201,775 -------- PRINTING AND PUBLISHING -- 13.3% American Lawyer Media 9 3/4%, 12/15/2007 ..................................... 50,000 44,000 American Media Operations 10 1/4%, 5/1/2009 .............................. 205,000 200,388 - ---------------- * Non-income producing security; issuer in default. + Rule 144A security. See Notes to Financial Statements. -- P-39 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Principal Amount Value -------- --------- PRINTING AND PUBLISHING (continued) Liberty Group Operating 9 3/8%, 2/1/2008 ........................ $ 225,000 $ 169,875 Liberty Group Publishing 0% (11 5/8%**), 2/1/2009 ................... 400,000 252,000 NBC Acquisition 0% (10 3/4%**), 2/15/2009 .................. 420,000 266,700 Nebraska Book 8 3/4%, 2/15/2008 ....................... 25,000 20,625 Perry-Judd 10 5/8%, 12/15/2007 ............. 140,000 116,900 Regional Independent Media Group 10 1/2%, 7/1/2008 ................. 150,000 153,750 TDL Infomedia Holdings 0% (15 1/2%**), 10/15/2010 ................. 600,000 465,750 TransWestern Holdings: 9 5/8%, 11/15/2007 ...................... 50,000 48,813 0% (11 7/8%**), 11/15/2008 .............. 250,000 196,250 Von Hoffman Press 10 3/8%, 5/15/2007+ .............................. 75,000 64,875 ----------- 1,999,926 ----------- RETAILING -- 0.7% Central Tractor 10 5/8%, 4/1/2007 ................................ 80,000 44,200 Musicland Group 9 7/8%, 3/15/2008 ............................... 65,000 65,325 ----------- 109,525 ----------- SEMICONDUCTORS -- 1.9% Amkor Technology: 9 1/4%, 5/1/2006 ........................ 25,000 23,688 10 1/2%, 5/1/2009 ....................... 150,000 141,375 Fairchild Semiconductor 10 3/8%, 10/1/2007 ...................... 125,000 118,125 ----------- 283,188 ----------- TELECOMMUNICATIONS -- 16.2% 360networks 13%, 5/1/2008+ ............................... 175,000 140,875 Asia Global Crossing 13 3/8%, 10/15/2010+ ............................. 50,000 43,375 BTI Telecom 10 1/2%, 9/15/2007 ............. 275,000 70,125 COLO.com 13 7/8%, 3/15/2010+ ............... 50,000 31,750 Global Crossing Holding 9 1/2% 11/15/2009 .............................. 275,000 261,250 Principal Amount Value -------- --------- TELECOMMUNICATIONS (continued) ICG Holdings 0% (11 5/8%**), 3/15/2007* .............................. $ 250,000 $ 22,812 Level 3 Communications 11%, 3/15/2008 ............................... 125,000 110,625 McLeodUSA: 12%, 7/15/2008 .......................... 275,000 279,125 11 1/2%, 5/1/2009 ....................... 95,000 95,238 Metromedia Fiber Network 10%, 12/15/2009 .............................. 150,000 125,250 Talton Holdings 11%, 6/30/2007 ............................... 155,000 113,925 Viatel 11 1/2%, 3/15/2009 .................. 75,000 22,875 Williams Communications: 11.70%, 8/1/2008 ........................ 125,000 100,625 10 7/8%, 10/1/2009 ...................... 100,000 75,000 World Access 13 1/4%, 1/15/2008 ............................... 285,000 195,581 Worldwide Fiber 12%, 8/1/2009 ................................ 350,000 262,500 XO Communications: 12 1/2%, 4/15/2006 ...................... 400,000 362,000 10 3/4%, 6/1/2009 ....................... 90,000 74,250 10 1/2%, 12/1/2009 ...................... 75,000 60,375 ----------- 2,447,556 ----------- TRANSPORTATION -- 1.2% Atlas Air 10 3/4%, 8/1/2005 ................ 175,000 181,125 ----------- UTILITIES -- 1.0% Midland Cogeneration Venture 11 3/4%, 7/23/2005 ...................... 140,000 149,954 ----------- WIRELESS TELEPHONY -- 6.2% Centennial Cellular 10 3/4%, 12/15/2008 .............................. 300,000 283,500 Dobson Communications 10 7/8%, 7/1/2010 ....................... 100,000 99,000 Powertel 11 1/8%, 6/1/2007 ................. 190,000 199,500 Price Communications Wireless 11 3/4%, 7/15/2007 ...................... 325,000 346,125 ----------- 928,125 ----------- Total Corporate Bonds (Cost $16,501,352) ...................... 12,457,284 ----------- - -------------------- * Non-income producing security; issuer in default. ** Deferred-interest debentures pay no interest for a stipulated number of years, after which they pay the indicated coupon rate. + Rule 144A security. See Notes to Financial Statements. -- P-40 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Shares Value -------- --------- PREFERRED STOCKS -- 11.2% BROADCASTING -- 1.2% Cumulus Media 13 3/4% ............... 66 $ 42,900 Sinclair Capital 11 5/8% ............ 1,500 131,625 ---------- 174,525 ---------- CABLE SYSTEMS & SATELLITE VIDEO -- 0.9% Pegasus Communications (Series A) 12 3/4% ............... 135 134,663 ---------- COMMUNICATIONS INFRASTRUCTURE -- 0.6% Crown Castle International 12 3/4% .......................... 95 91,200 ---------- CONTRACT MANUFACTURING/ CIRCUIT BOARDS -- 1.1% MCMS 12 1/2% @ ...................... 1,729 166,416 ---------- HEALTH CARE/MEDICAL PRODUCTS -- 0.1% River Holding 11 1/2% @ ............. 323 18,653 ---------- INDUSTRIAL/ MANUFACTURING -- 0.7% Day International Group 12 1/4% ..... 150 104,062 ---------- PRINTING AND PUBLISHING -- 2.1% Liberty Group Publishing 14 3/4% .... 12,733 315,142 ---------- TELECOMMUNICATIONS -- 2.8% Broadwing Communications 12 1/2% .......................... 182 176,995 Global Crossing Holding 10 1/2% ..... 2,325 205,181 XO Communications 14% ............... 1,430 43,258 ---------- 425,434 ---------- Shares or Principal Amount Value -------- --------- WIRELESS TELEPHONY -- 1.7% Nextel Communications 11 1/8% ....... 119 shs. $ 101,448 Rural Cellular 11 3/8% .............. 200 160,500 ---------- 261,948 ---------- Total Preferred Stocks (Cost $1,953,150) ................ 1,692,043 ---------- CONVERTIBLE PREFERRED STOCKS -- 0.5% INTERNET AND RELATED PSINet 7%+ .......................... 835 1,044 TELECOMMUNICATIONS -- 0.5% Global Crossing Holding 7% .......... 600 74,175 ---------- Total Convertible Preferred Stocks (Cost $201,752) .................. 75,219 ---------- COMMON STOCKS -- 2.1% BROADCASTING -- 0.9% Clear Channel Communications++ ................. 2,585 125,211 ---------- TELECOMMUNICATIONS World Access++ ...................... 895 2,167 ---------- WIRELESS TELEPHONY -- 1.2% Price Communications++ .............. 11,000 184,937 ---------- Total Common Stocks (Cost $279,873) .................. 312,315 ---------- CONVERTIBLE BONDS -- 0.5% SEMICONDUCTORS -- 0.3% Amkor Technology 5%, 3/15/2007+ ....................... $ 75,000 49,406 WIRELESS TELEPHONY -- 0.2% Nextel Communications 5 1/4%, 1/15/2010 ........................ 35,000 25,638 ---------- - ----------------------- + Rule 144A security. ++ Non-income producing security. @ Represents a pay-in-kind security which may pay interest or dividends in additional bonds or shares. See Notes to Financial Statements. -- P-41 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO (continued) Value --------- Total Convertible Bonds (Cost $99,632) ............. $ 75,044 ----------- Total Investments -- 96.9% (Cost $19,035,759) ......... 14,611,905 ----------- Value --------- Other Assets Less Liabilities -- 3.1% ........ $ 468,191 ----------- Net Assets -- 100.0% .......... $15,080,096 =========== - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO Shares Value ----------- ----------- COMMON STOCKS -- 62.7% COMMUNICATION EQUIPMENT -- 0.8% Lucent Technologies ........... 1,000 $ 13,500 QUALCOMM* ..................... 400 32,863 ----------- 46,363 ----------- COMMUNICATIONS -- 2.9% AT&T .......................... 1,300 22,506 SBC Communications ............ 1,179 56,297 Sprint ........................ 800 16,250 Verizon Communications ........ 1,020 51,128 WorldCom* ..................... 1,150 16,172 ----------- 162,353 ----------- CONSUMER GOODS AND SERVICES -- 3.9% Coca-Cola ..................... 400 24,375 Gillette ...................... 1,300 46,962 Kroger* ....................... 700 18,944 McDonald's .................... 1,200 40,800 PepsiCo ....................... 700 34,694 Procter & Gamble .............. 400 31,375 Ralston Purina Group .......... 1,000 26,125 ----------- 223,275 ----------- DRUGS AND HEALTH CARE -- 9.6% Abbott Laboratories ........... 1,200 58,125 American Home Products ........ 700 44,485 Baxter International .......... 800 70,650 Guidant* ...................... 1,300 70,119 Johnson & Johnson ............. 400 42,025 Merck ......................... 700 65,537 Pfizer ........................ 1,400 64,400 Pharmacia ..................... 500 30,500 St. Jude Medical* ............. 1,600 98,300 ----------- 544,141 ----------- Shares Value ----------- ----------- ELECTRIC AND GAS UTILITIES -- 5.2% Calpine* ...................... 900 $ 40,556 Coastal ....................... 1,100 97,144 Exelon ........................ 1,137 79,829 Williams Companies (The) ...... 1,900 75,881 ----------- 293,410 ----------- ELECTRONIC TECHNOLOGY -- 9.1% Agilent Technologies* ......... 733 40,132 Altera* ....................... 650 17,123 Analog Devices* ............... 400 20,475 Applied Materials* ............ 1,800 68,738 Cisco Systems* ................ 2,000 76,500 Compaq Computer ............... 1,300 19,565 Conexant Systems* ............. 1,100 16,706 Dell Computer* ................ 1,600 27,950 EMC* .......................... 300 19,950 Gateway* ...................... 100 1,799 Intel ......................... 2,200 66,137 International Business Machines 650 55,250 Micron Technology* ............ 500 17,750 Novellus Systems* ............. 700 25,091 Sun Microsystems* ............. 500 13,922 Vitesse Semiconductor* ........ 500 27,672 ----------- 514,760 ----------- ENERGY -- 5.6% BP Amoco (ADRs) (United Kingdom) ........... 1,100 52,662 Baker Hughes .................. 500 20,781 Exxon Mobil ................... 1,192 103,630 Royal Dutch Petroleum (ADRs) (Netherlands) .............. 1,100 66,619 Schlumberger .................. 900 71,944 ----------- 315,636 ----------- - ------------------- * Non-income producing security. See Notes to Financial Statements. -- P-42 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Shares Value -------- --------- FINANCE AND INSURANCE -- 12.7% American General ....................... 1,100 $ 89,650 American International Group ........... 1,312 129,314 Bank of New York ....................... 2,400 132,450 Chubb .................................. 900 77,850 Citigroup .............................. 2,133 108,917 Fannie Mae ............................. 900 78,075 Merrill Lynch .......................... 700 47,731 XL Capital (Class A) (Bermuda) ........................... 600 52,425 ---------- 716,412 ---------- MACHINERY AND INDUSTRIAL EQUIPMENT -- 4.9% General Electric ....................... 3,600 172,575 United Technologies .................... 1,350 106,144 ---------- 278,719 ---------- MEDIA -- 0.5% Comcast (Class A)* ..................... 700 29,203 OFFICE EQUIPMENT -- 1.3% Pitney Bowes ........................... 2,200 72,875 ---------- PAPER AND FOREST PRODUCTS -- 0.3% Mead ................................... 500 15,688 ---------- RETAIL TRADE -- 2.0% Costco Wholesale* ...................... 500 19,984 Home Depot ............................. 500 22,844 May Department Stores .................. 600 19,650 Wal-Mart Stores ........................ 900 47,812 ---------- 110,290 ---------- TECHNOLOGY SERVICES -- 3.9% America Online* ........................ 600 20,880 Electronic Data Systems ................ 1,350 77,962 Microsoft* ............................. 2,050 88,983 Oracle* ................................ 1,000 29,062 ---------- 216,887 ---------- Total Common Stocks (Cost $3,383,586) .................. 3,540,012 ---------- Principal Amount Value -------- --------- CORPORATE BONDS -- 16.8% AUTOMOTIVE AND RELATED -- 0.5% DaimlerChrysler North America 7 3/4%, 6/15/2005 ................... $ 30,000 $ 30,554 ---------- CHEMICALS -- 1.7% Lyondell Chemical 9 5/8%, 5/1/2007 ............................ 100,000 97,250 ---------- COMMUNICATIONS -- 3.3% Global Crossing Holdings 9 1/8%, 11/15/2006 .......................... 75,000 72,188 Metronet Communications 0% (9.95%**), 6/15/2008 ................ 50,000 40,590 Qwest Communications 0% (9.47%**), 10/15/2007 ............... 50,000 45,863 WorldCom 8%,5/15/2006 .................. 25,000 25,463 ---------- 184,104 ---------- DRUGS AND HEALTH CARE -- 1.3% Boston Scientific 6 5/8%, 3/15/2005 ........................... 25,000 22,778 Guidant 6.15%, 2/15/2006 ........................... 50,000 48,336 ---------- 71,114 ---------- ELECTRIC AND GAS UTILITIES -- 1.8% Dominion Resources 7 5/8%, 7/15/2005 ........................... 40,000 41,761 Ocean Energy 8 3/8%, 7/1/2008 ............................ 50,000 51,125 Southern California Edison 7.20%, 11/3/2003* ................... 10,000 8,583 ---------- 101,469 ---------- ELECTRONIC TECHNOLOGY -- 0.7% Avnet 7 7/8%, 2/15/2005 ................ 40,000 39,581 ---------- FINANCE AND INSURANCE -- 3.4% Citigroup: 7 3/8% 3/15/2003 .................... 15,000 15,178 7 1/8% 10/15/2004 ................... 20,000 20,031 6 3/4% 12/1/2005 .................... 20,000 20,459 Household Finance 7 7/8%, 3/1/2007 ............................ 50,000 52,107 Mellon Funding 7 1/2%, 6/15/2005 ........................... 25,000 26,291 - ------------------ * 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-43 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Principal Amount Value -------- ------- FINANCE AND INSURANCE (continued) Charles Schwab 8.05%, 3/1/2010 .................... $ 25,000 $ 26,842 State Street Bank & Trust 7.65%, 6/15/2010 ................... 30,000 32,012 -------- 192,920 -------- INDUSTRIAL GOODS AND SERVICES -- 0.5% Leggett & Platt 7.65%, 2/15/2005 ................... 30,000 30,925 -------- MEDIA -- 0.9% CSC Holdings 7 1/4%, 7/15/2008 . 50,000 48,666 -------- RETAIL TRADE -- 1.2% Staples 7 1/8%, 8/15/2007 ...... 75,000 70,272 -------- TECHNOLOGY SERVICES -- 0.4% Computer Sciences 7 1/2%, 8/8/2005 .................... 20,000 20,648 -------- TRANSPORTATION - 1.1% Continental Airlines: 8.048%, 11/1/2020 ........... 24,775 26,585 7.707%, 4/2/2021 ............ 20,000 21,213 United Air Lines 7.032%, 10/1/2010 ................... 15,000 15,361 -------- 63,159 -------- Total Corporate Bonds (Cost $942,482) ............. 950,662 -------- US GOVERNMENT AND GOVERNMENT AGENCY SECURITIES -- 15.0% US GOVERNMENT SECURITIES -- 3.4% US Treasury Bonds: 7 1/2%, 11/15/2016 .......... 50,000 60,323 6 1/4%, 8/15/2023 ........... 75,000 81,133 US Treasury Notes: 6 5/8%, 5/15/2007 ........... 25,000 26,974 6%, 8/15/2009 ............... 20,000 21,116 -------- Total US Government Securities (Cost $179,162) ............. 189,546 -------- Principal Amount Value -------- ------- US GOVERNMENT AGENCY SECURITIES -- 11.6% FHLMC:+ 6 7/8%, 9/15/2010 ........... $ 30,000 $ 32,040 FHLMC GOLD:+ 6%, 11/1/2010 ............... 73,992 73,125 5 1/2%, 7/1/2013 ............ 85,725 83,440 7 1/2%, 10/1/2017 ........... 44,919 45,741 8%, 12/1/2023 ............... 24,848 25,674 FNMA:+ 8 1/2%, 9/1/2015 ............ 33,969 35,078 6 1/2%, 5/1/2018 ............ 30,483 30,283 7%, 10/1/2020 ............... 14,764 14,854 8%, 6/1/2028 ................ 21,773 22,452 7 1/2%, 6/1/2030 ............ 24,581 24,946 GNMA, Mortgage-backed Pass-through Certificates:+ 6 1/2%, 12/15/2028 .......... 85,118 84,289 6%, 12/20/2028 .............. 89,122 86,309 US Government Gtd. Title XI (Bay Transportation) 7.30%, 6/1/2021 .................... 90,000 95,511 -------- Total US Government Agency Securities (Cost $648,562) .. 653,742 -------- Total US Government and Government Agency Securities (Cost $827,724) ............. 843,288 -------- ASSET-BACKED SECURITIES+ -- 2.8% AUTOMOTIVE AND RELATED -- 0.5% Ford Credit Auto Owner Trust 6.74%, 6/15/2004 ............ 25,000 25,413 -------- ELECTRIC AND GAS UTILITIES -- 1.4% PP&L Transition 6.83%, 3/25/2007 ................... 75,000 76,490 -------- FINANCE AND INSURANCE -- 0.9% Citibank Credit Card 6 7/8%, 11/15/2009 .................. 25,000 26,401 MBNA Master Credit Card 6.90%, 1/15/2008 ................... 25,000 25,955 -------- 52,356 -------- - ---------------- + 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-44 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO (continued) Value ------- Total Asset-Backed Securities (Cost $149,952) .................... $ 154,259 ---------- Total Investments -- 97.3% (Cost $5,303,744) .................. 5,488,221 Value ------- Other Assets Less Liabilities -- 2.7% ................ $ 151,310 ---------- Net Assets -- 100.0% .................. $5,639,531 ========== SELIGMAN INTERNATIONAL GROWTH PORTFOLIO Shares Value ---------- ---------- COMMON STOCKS -- 97.0% BRAZIL -- 1.6% Empresa Brasileira de Aeronautia "Embraer" (ADRs) (Manufacturing) .................... 2,900 $ 115,275 ---------- CANADA -- 3.2% Manulife Financial (Financial Services) ............... 2,700 84,493 Research In Motion* (Electronics) ...................... 600 48,225 Sun Life Financial Services (Financial Services) ............... 3,600 95,981 ---------- 228,699 ---------- DENMARK -- 2.9% Nega Micon Technology Group (Power Generation Equipment) ......................... 600 35,504 Novo Nordisk (B Shares) (Drugs and Health Care) ............ 400 71,764 Vestas Wind Systems (Power Generation Equipment) .............. 1,900 102,861 ---------- 210,129 ---------- FINLAND -- 3.2% Nokia (Telecommunications) ............... 4,200 187,330 Nokia (ADRs) (Telecommunications) ............... 1,000 43,500 ---------- 230,830 ---------- FRANCE -- 13.1% Alcatel (Telecommunications) .......... 800 45,448 Altran Technologies (Telecommunications) ............... 375 84,862 Shares Value ---------- ---------- FRANCE (continued) Aventis (Drugs and Health Care) ....................... 1,200 $ 105,356 EADS (Manufacturing) .................. 4,300 95,531 Groupe Danone (Consumer Products) .......................... 1,135 171,162 Renault (Automotive and Related) ........................... 1,400 72,960 Societe Television Francaise 1 "TF1" (Media) ...................... 1,400 75,589 Suez Lyonnaise des Eaux (Utilities) ........................ 600 109,581 Total Fina (B Shares) (Resources) ........................ 1,205 179,229 ---------- 939,718 ---------- GERMANY -- 9.1% Allianz (Insurance) ................... 400 149,714 DaimlerChrysler (Automotive and Related) ........... 900 37,080 Deutsche Telekom (Telecommunications) ............... 3,700 111,525 Lufthansa (Transportation) ............ 2,950 76,038 Munich Re (Insurance) ................. 600 214,689 Siemens (Manufacturing) ............... 495 64,701 ---------- 653,747 ---------- HONG KONG -- 4.1% China Telecom* (Hong Kong) (Telecommunications) ............... 14,000 76,464 HSBC Holdings (Financial Services) .......................... 12,000 178,468 Li & Fung (Consumer Goods and Services) ...................... 22,000 39,912 ---------- 294,844 ---------- - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-45 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued) Shares Value -------- -------- IRELAND -- 2.6% Bank of Ireland (Banking) ...... 10,200 $102,291 Ryanair Holdings (ADRs) (Transportation) ............ 1,460 81,258 -------- 183,549 -------- ITALY -- 5.6% Assicurazioni Generali (Insurance) ................. 3,800 150,935 Bulgari (Consumer Products) .... 6,000 73,805 Edison (Utilities) ............. 5,000 55,870 Telecom Italia (Telecommunications) ........ 10,600 117,251 -------- 397,861 -------- JAPAN -- 13.1% Chugai Pharmaceutical (Drugs and Health Care) ............ 5,000 83,100 Fast Retailing (Retailing) ..... 400 78,307 JSAT (Telecommunications) ...... 7 41,699 Kyocera (Electronics) .......... 500 54,540 Matsushita Electric Industrial (Electronics) ............... 2,000 47,761 Moritex (Computer and Technology Related) ......... 1,400 59,761 Murata Manufacturing (Electronics) ............... 700 82,050 Nippon Telegraph & Telephone "NTT" (Telecommunications) .. 9 64,792 NTT Mobile Communication Network "NTT DoCoMo" (Telecommunications) ........ 3 51,697 Nomura Securities (Financial Services) ........ 1,600 28,761 Promise (Financial Services) ... 500 35,427 Shiseido (Consumer Products) ... 5,000 55,765 Sony (Consumer Products) ....... 1,100 76,015 Takeda Chemical Industries (Chemical) .................. 2,000 118,265 Toshiba (Electronics) .......... 9,000 60,147 -------- 938,087 -------- MEXICO -- 2.9% Telefonos de Mexico SA (Telecommunications) ........ 2,300 103,788 Grupo Televisa SA (Media) ...... 2,300 103,356 -------- 207,144 -------- Shares Value -------- -------- NETHERLANDS -- 8.1% Akzo Nobel (Health and Household) .................. 3,900 $209,472 Elsevier (Publishing) .......... 5,400 79,406 ING Groep (Insurance) .......... 917 73,259 Koninklijke (Royal) Philips Electronics (Electronics) ... 1,885 69,066 Unilever (ADRs) (Consumer Products) ................... 2,400 151,050 -------- 582,253 -------- NORWAY -- 1.2% Tomra Systems (Business Goods and Services) ......... 4,400 85,521 -------- SPAIN -- 3.4% Banco Santander Central Hispano (Banking) ........... 8,000 85,637 Grupo Auxiliar Metalurgico "Gamesa"* (Resources) ....... 200 4,808 Telefonica (Telecommunications) 9,180 151,712 -------- 242,157 -------- SWEDEN -- 0.5 L.M. Ericsson Telefon (Series B) (Telecommunications) ........ 2,936 33,438 -------- SWITZERLAND -- 6.9% CardGuard Scientific Survival* (Medical Products and Technology) ................. 1,700 110,124 Novartis (Health and Household) .............. 120 212,104 Phonak Holding (Consumer Products) ................... 15 62,095 UBS (Banking) .................. 650 106,068 -------- 490,391 -------- UNITED KINGDOM--15.5% BAA (Transportation) ........... 7,730 71,432 Centrica (Electric and Gas Utilities) .............. 26,400 102,341 CMG (Computer and Technology Related) ......... 3,820 51,123 Diageo (Retailing) ............. 12,100 135,699 GlaxoSmithKline (Medical Products and Technology) .... 2,427 68,590 - ------------------- See Notes to Financial Statements. -- P-46 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN INTERNATIONAL GROWTH PORTFOLIO (continued) Shares Value ------ -------- Royal Bank of Scotland (Banking) ...................... 7,400 $ 175,052 Royal Bank of Scotland (Banking) ...................... 5,400 6,702 Tesco (Retailing) ................. 47,400 193,318 Vodafone Group (Telecommunications) ........... 62,000 227,600 P & O Princess Cruise Lines (Leisure) ...................... 160 677 WPP Group (Media) ................. 5,600 73,019 ---------- 1,105,553 ---------- Total Common Stocks (Cost $6,674,443) .............. 6,939,196 ---------- Shares Value ------ -------- PREFERRED STOCKS -- 1.2% (Cost $78,972) GERMANY--1.2% Hugo Boss (Consumer Products) ...................... 300 $ 84,510 ---------- Total Investments -- 98.2% (Cost $6,753,415) .............. 7,023,706 Other Assets Less Liabilities -- 1.8% ............ 125,775 ---------- Net Assets -- 100.0% .............. $7,149,481 ========== - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO Shares Value ------ -------- COMMON STOCKS -- 93.0% CAPITAL GOODS -- 11.8% General Dynamics .................. 1,600 $ 124,800 General Electric .................. 2,750 131,828 Symbol Technologies ............... 2,400 86,400 Texas Instruments ................. 2,200 104,225 Tyco International ................ 2,500 138,750 Waters* ........................... 400 33,400 ---------- 619,403 ---------- COMMUNICATION SERVICES -- 10.1% AT&T .............................. 5,300 91,756 Openwave Systems* ................. 2,566 122,126 Research In Motion* (Canada) ...... 600 48,225 SBC Communications ................ 2,200 105,050 Sprint ............................ 3,100 63,356 Verizon Communications ............ 2,000 100,250 ---------- 530,763 ---------- CONSUMER CYCLICALS -- 6.2% GAP ............................... 4,800 122,400 Harley-Davidson ................... 1,350 53,662 Wal-Mart Stores ................... 2,800 148,750 ---------- 324,812 ---------- CONSUMER STAPLES -- 11.7% Coca-Cola ......................... 1,950 118,828 Comcast (Class A)* ................ 2,700 112,641 McKesson HBOC ..................... 2,700 96,903 Shares Value ------ -------- CONSUMER STAPLES (continued) Philip Morris ..................... 4,000 $ 176,000 Procter & Gamble .................. 1,400 109,812 ---------- 614,184 ---------- ELECTRONIC TECHNOLOGY -- 13.3% Analog Devices* ................... 2,000 102,375 Cisco Systems* .................... 6,000 229,500 Handspring* ....................... 1,000 38,844 I2 Technologies* .................. 600 32,606 Intel ............................. 2,900 87,181 International Business Machines ....................... 550 46,750 Maxim Integrated Products* ........ 1,500 71,672 Palm* ............................. 1,000 28,281 VERITAS Software* ................. 700 61,272 ---------- 698,481 ---------- FINANCIAL SERVICES -- 4.0% American International Group ...... 1,400 137,988 Wells Fargo ....................... 1,300 72,394 ---------- 210,382 ---------- HEALTH CARE -- 13.9% Amgen* ............................ 750 47,977 Elan (ADRs)* (Ireland) ............ 950 44,472 Genentech* ........................ 1,000 81,500 Guidant* .......................... 3,550 191,478 Medtronic ......................... 900 54,338 - ------------------ * Non-income producing security. See Notes to Financial Statements. -- P-47 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP GROWTH PORTFOLIO (continued) Shares Value -------- ------- HEALTH CARE (continued) Pfizer ........................... 5,450 $ 250,700 Watson Pharmaceuticals* .......... 1,200 61,425 ---------- 731,890 ---------- TECHNOLOGY SERVICES -- 17.0% America Online* .................. 3,400 118,320 Applera-Applied Biosystems Group ......................... 600 56,437 BEA Systems* ..................... 1,300 87,506 Brocade Communications Systems* ...................... 800 73,425 Citrix Systems* .................. 2,300 51,822 Microsoft* ....................... 3,500 151,922 Oracle* .......................... 7,300 212,156 Siebel Systems* .................. 1,000 67,594 VeriSign* ........................ 1,000 74,125 ---------- 893,307 ---------- TELECOMMUNICATION EQUIPMENT -- 5.0% Lucent Technologies .............. 4,450 60,075 Shares or Principal Amount Value -------- --------- TELECOMMUNICATION EQUIPMENT (continued) QUALCOMM* ........................ 2,500 shs. $ 205,390 ---------- 265,465 ---------- Total Common Stocks (Cost $5,682,644) ............. 4,888,687 ---------- REPURCHASE AGREEMENT -- 6.7% (Cost $350,000) State Street Bank & Trust, 5 3/4%, dated 12/29/00 maturing 1/2/01, collateralized by: $335,000 US Treasury Notes 3 7/8%, 1/15/2009, with fair market value of $364,941 ............. $ 350,000 350,000 ---------- Total Investments 99.7% (Cost $6,032,644) ............. 5,238,687 Other Assets Less Liabilities -- 0.3% ........... 16,527 ---------- Net Assets -- 100.0% ............. $5,255,214 ========== - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO Shares Value -------- ------- COMMON STOCKS -- 95.6% AEROSPACE -- 6.0% Goodrich (B.F.) .................. 4,500 $ 163,687 United Technologies .............. 2,500 196,562 ---------- 360,249 ---------- AUTOMOTIVE AND RELATED -- 2.5% Ford Motor ....................... 6,500 152,344 ---------- BANKING -- 8.8% Bank of New York ................. 2,500 137,969 Chase Manhattan Bank ............. 7,000 318,063 Summit Bancorp ................... 2,000 76,375 ---------- 532,407 ---------- CHEMICALS -- 2.7% Dow Chemical ..................... 4,500 164,812 DRUGS AND HEALTH CARE -- 8.4% American Home Products ........... 2,900 184,295 Humana* .......................... 16,500 251,625 Shares Value -------- ------- DRUGS AND HEALTH CARE (continued) United Healthcare Group .......... 1,200 $ 73,650 ---------- 509,570 ---------- ELECTRIC ANDGAS UTILITIES -- 0.6% Edison International ............. 2,200 34,375 ---------- ELECTRONIC TECHNOLOGY -- 4.2% International Business Machines .. 3,000 255,000 ---------- ENERGY -- 6.6% El Paso Energy ................... 3,000 214,875 Texaco ........................... 3,000 186,375 ---------- 401,250 ---------- FINANCE AND INSURANCE -- 18.7% Allstate ......................... 6,000 261,375 Citigroup ........................ 3,000 153,188 Fannie Mae ....................... 2,200 190,850 St. Paul Companies ............... 2,500 135,781 UnumProvident .................... 4,800 129,000 Washington Mutual ................ 5,000 265,313 ---------- 1,135,507 ---------- - ------------------- * Non-income producing security. See Notes to Financial Statements. -- P-48 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- December 31, 2000 - -------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (continued) Shares Value -------- --------- FOOD -- 7.4% Conagra .......................... 6,000 $ 156,000 Dole Food ........................ 6,500 106,438 Safeway* ......................... 3,000 187,500 ---------- 449,938 ---------- HOUSEHOLD PRODUCTS AND FURNISHINGS -- 4.6% Dial ............................. 11,400 125,400 Kimberly-Clark ................... 2,200 155,518 ---------- 280,918 ---------- MEDICAL PRODUCTS AND TECHNOLOGY -- 6.6% Baxter International ............. 2,500 220,781 Medtronic ........................ 3,000 181,125 ---------- 401,906 ---------- PAPER AND FOREST PRODUCTS -- 5.3% Georgia-Pacific Group ............ 7,000 217,875 International Paper .............. 2,500 102,031 ---------- 319,906 ---------- Shares Value -------- --------- RETAIL TRADE -- 3.2% Costco Wholesale* ................ 2,100 $ 83,934 Radio Shack ...................... 2,500 107,031 ---------- 190,965 ---------- TELECOMMUNICATIONS -- 4.7% Qwest Communications International* ................ 4,000 164,000 Sprint ........................... 6,000 121,875 ---------- 285,875 ---------- TOBACCO -- 5.2% Philip Morris .................... 7,100 312,400 ---------- Total Investments -- 95.6% (Cost $4,899,812) ............. 5,787,422 Other Assets Less Liabilities -- 4.4% ........... 269,091 ---------- Net Assets -- 100.0% ............. $6,056,513 ========== - -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO Shares Value -------- --------- COMMON STOCKS -- 98.9% ADVERTISING -- 3.4% True North Communications ........ 13,000 $ 552,500 ---------- AEROSPACE -- 3.3% Litton Industries* ............... 7,000 550,812 ---------- APPAREL AND TEXTILES -- 2.2% Cutter & Buck* ................... 47,300 366,575 ---------- BANKING -- 4.8% Commercial Federal ............... 15,000 291,562 IndyMac Bancorp .................. 17,000 501,500 ---------- 793,062 ---------- BUILDING AND CONSTRUCTION -- 3.5% Dal-Tile International* .......... 41,000 581,688 ---------- Shares Value -------- --------- CHEMICALS -- 8.8% Crompton ......................... 50,000 $ 525,000 Minerals Technologies ............ 12,000 410,250 Olin* ............................ 23,100 511,087 ---------- 1,446,337 ---------- CONSUMER GOODS AND SERVICES -- 1.9% Fresh Del Monte Produce* ......... 70,000 310,625 ---------- DISTRIBUTORS -- 0.7% Cubic ............................ 4,650 119,447 ---------- DRUGS AND HEALTH CARE -- 7.3% Apria Healthcare Group* .......... 16,000 476,000 Omnicare ......................... 19,000 410,875 Oxford Health Plans* ............. 8,000 316,250 ---------- 1,203,125 ---------- - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-49 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Portfolios of Investments (continued) - -------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (continued) Shares Value -------- --------- ELECTRONICS -- 3.1% Trimble Navigation* (Germany) . 21,000 $ 515,156 ------------ FINANCE AND INSURANCE -- 5.1% Liberty Financial Companies ... 6,000 267,375 Mutual Risk Management ........ 37,500 569,531 ------------ 836,906 ------------ LEISURE AND RELATED -- 2.4% Harman International Industries 11,000 401,500 ------------ MACHINERY -- 4.8% Stewart & Stevenson Services .. 35,000 795,156 ------------ MANUFACTURING -- 5.8% Furniture Brands International* 20,000 421,250 Mueller Industries* ........... 20,000 536,250 ------------ 957,500 ------------ MEDICAL TECHNOLOGY -- 2.5% Pharmacopeia* ................. 19,000 415,031 ------------ OIL AND GAS -- 7.8% Midcoast Energy Resources ..... 37,000 807,063 Valero Energy ................. 13,000 483,438 ------------ 1,290,501 ------------ PACKAGING/CONTAINERS -- 5.8% Bway* ......................... 55,000 216,563 Smurfit-Stone Container* ...... 50,000 745,313 ------------ 961,876 ------------ PLASTICS -- 2.6% Lamson & Sessions* ............ 40,000 420,000 ------------ Shares Value -------- --------- PRINTING AND PUBLISHING -- 3.0% Cadmus Communications ......... 53,450 $ 486,061 ------------ RESTAURANTS -- 2.0% Jack In The Box* .............. 11,450 337,059 ------------ RETAIL TRADE -- 8.2% Abercrombie & Fitch (Class A)* 20,000 400,000 Fred's ........................ 19,500 407,672 Urban Outfitters* ............. 16,000 127,500 The Wet Seal (Class A)* ....... 20,000 411,250 ------------ 1,346,422 ------------ TRANSPORTATION -- 6.2% ABC-NACO* ..................... 34,000 197,625 CNF ........................... 8,800 297,550 Pittston Brink's Group ........ 26,272 522,156 ------------ 1,017,331 ------------ UTILITIES -- 3.7% Orion Power Holdings .......... 25,000 615,625 ------------ Total Common Stocks (Cost $13,777,403) ......... 16,320,295 Short-Term Holdings -- 3.2% (Cost $525,000) ............ 525,000 ------------ Total Investments -- 102.1% (Cost $14,302,403) ......... 16,845,295 Other Assets Less Liabilities -- (2.1)% ...... (350,576) ------------ Net Assets -- 100.0% .......... $ 16,494,719 ============ - ----------------- * Non-income producing security. See Notes to Financial Statements. -- P-50 -- This Page Intentionally Left Blank. --P-51-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Statements of Assets and Liabilities - --------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman Seligman Cash Common Communications Bond Capital Management Stock and Information Portfolio Portfolio Portfolio Portfolio Portfolio ---------- --------- ---------- --------- --------------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings.......................... $6,270,211 $37,883,199 $ -- $32,531,956 $120,956,260 Short-term holdings......................... -- 1,400,000 10,776,799 500,000 13,700,000 ---------- ----------- ----------- ----------- ------------ Total Investments........................... 6,270,211 39,283,199 10,776,799 33,031,956 134,656,260 Cash........................................ 134,492 93,673 84,989 182,326 79,574 Interest and dividends receivable........... 90,661 11,813 5,019 25,893 12,111 Receivable from the Manager................. 1,112 -- 7,267 -- -- Receivable for Capital Stock sold........... -- 54,548 1,500,044 -- 153,743 Receivable for securities sold.............. -- 551,469 -- -- 2,716,371 Other....................................... -- 273 3,885 -- 4,678 ---------- ----------- ----------- ----------- ------------ Total Assets................................ 6,496,476 39,994,975 12,378,003 33,240,175 137,622,737 ---------- ----------- ----------- ----------- ------------ LIABILITIES: Payable for securities purchased............ -- 1,202,600 -- 311,322 1,595,830 Payable for Capital Stock redeemed.......... 248 36,996 42,565 148,811 114,138 Payable to the Manager...................... -- 13,549 -- 11,287 88,732 Unrealized depreciation on foreign currencies and forward currency contracts....................... -- -- -- -- -- Accrued expenses and other.................. 13,609 35,011 17,272 30,932 100,627 ---------- ----------- ----------- ----------- ------------ Total Liabilities........................... 13,857 1,288,156 59,837 502,352 1,899,327 ---------- ----------- ----------- ----------- ------------ Net Assets.................................. $6,482,619 $38,706,819 $12,318,166 $32,737,823 $135,723,410 ========== =========== =========== =========== ============ COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par................ $ 634 $ 1,569 $ 12,316 $ 2,301 $ 9,161 Additional paid-in-capital.................. 6,345,960 28,288,098 12,303,584 25,568,573 139,239,707 Undistributed/accumulated net investment income (loss)................. 343,251 22,086 -- 272,032 (3,863) Undistributed/accumulated net realized gain (loss)................. (343,082) 10,904,048 2,266 2,166,275 17,279,877 Net unrealized appreciation (depreciation) of investments............ 135,856 (508,982) -- 4,728,642 (20,801,472) Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts........... -- -- -- -- -- ---------- ----------- ----------- ----------- ------------ Net Assets.................................. $6,482,619 $38,706,819 $12,318,166 $32,737,823 $135,723,410 ========== =========== =========== =========== ============ Class 1.................................. $6,482,619 $37,137,976 $12,318,166 $32,737,823 $127,901,077 Class 2.................................. 1,568,843 7,822,333 Shares of Capital Stock Outstanding Class 1.................................. 634,227 1,504,651 12,316,289 2,300,809 8,632,051 Class 2.................................. 63,572 528,519 Net Asset Value per Share Class 1.................................. $10.22 $24.68 $1.00 $14.23 $14.82 ====== ====== ===== ====== ====== Class 2.................................. $24.68 $14.80 ====== ======
-- p-52 --
Seligman Seligman Seligman Seligman Seligman Global Smaller Global High-Yield Frontier Global Growth Companies Technology Bond Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ---------- ----------- ----------- ----------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings.......................... $16,085,592 $7,778,836 $13,165,692 $24,440,491 $14,611,905 ----------- ---------- ----------- ----------- ----------- Short-term holdings......................... 1,700,000 -- -- -- -- Total Investments........................... 17,785,592 7,778,836 13,165,692 24,440,491 14,611,905 Cash........................................ 88,343 1,138,913 1,165,041 4,409,797 61,620 Interest and dividends receivable........... 3,621 1,913 3,696 944 438,917 Receivable from the Manager................. -- 2,129 -- -- 904 Receivable for Capital Stock sold........... 9,840 6,321 5,009 46,147 -- Receivable for securities sold.............. 120,684 -- 71,831 97,590 -- Other....................................... 1,784 3,488 10,994 2,255 -- ----------- ---------- ----------- ----------- ----------- Total Assets................................ 18,009,864 8,931,600 14,422,263 28,997,224 15,113,346 ----------- ---------- ----------- ----------- ----------- LIABILITIES: Payable for securities purchased............ 90,229 326,318 50,162 116,816 8,490 Payable for Capital Stock redeemed.......... 883,649 232,269 18,886 50,989 -- Payable to the Manager...................... 881 -- 20,676 24,330 6,390 Unrealized depreciation on foreign currencies and forward currency contracts....................... -- 46 -- -- -- Accrued expenses and other.................. 23,875 25,148 22,775 35,517 18,370 ----------- ---------- ----------- ----------- ----------- Total Liabilities........................... 998,634 583,781 112,499 227,652 33,250 ----------- ---------- ----------- ----------- ----------- Net Assets.................................. $17,011,230 $8,347,819 $14,309,764 $28,769,572 $15,080,096 =========== ========== =========== =========== =========== COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par................ $ 1,114 $ 552 $ 994 $ 1,429 $ 1,727 Additional paid-in-capital.................. 14,382,728 5,057,784 11,524,766 28,988,702 21,923,994 Undistributed/accumulated net investment income (loss)................. (3,427) (2,738) (3,562) (2,741) 2,256,072 Undistributed/accumulated net realized gain (loss)................. 839,623 3,006,238 1,483,443 2,575,562 (4,677,843) Net unrealized appreciation (depreciation) of investments............ 1,791,192 160,130 1,698,324 (3,287,741) (4,423,854) Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts........... -- 125,853 (394,201) 494,361 -- ----------- ---------- ----------- ----------- ----------- Net Assets.................................. $17,011,230 $8,347,819 $14,309,764 $28,769,572 $15,080,096 =========== ========== =========== =========== =========== Class 1.................................. $17,011,230 $8,347,819 $14,309,764 $25,369,703 $15,080,096 Class 2.................................. $ 3,399,869 Shares of Capital Stock Outstanding Class 1.................................. 1,114,480 552,373 993,794 1,259,883 1,726,702 Class 2.................................. 168,840 Net Asset Value per Share Class 1.................................. $15.26 $15.11 $14.40 $20.14 $8.73 ====== ====== ====== ====== ===== Class 2.................................. $20.14 ======
- -------------------------------------------------------------------------------- December 31, 2000 - --------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman Seligman International Large-Cap Large-Cap Small-Cap Income Growth Growth Value Value Portfolio Portfolio Portfolio Portfolio Portfolio ---------- ---------- ---------- ---------- ----------- ASSETS: Investments, at value (see portfolios of investments): Long-term holdings.......................... $5,488,221 $7,023,706 $4,888,687 $5,787,422 $16,320,295 Short-term holdings......................... -- -- 350,000 -- 525,000 ---------- ---------- ---------- ---------- ----------- Total Investments........................... 5,488,221 7,023,706 5,238,687 5,787,422 16,845,295 Cash........................................ 198,856 515,266 29,840 277,107 19,379 Interest and dividends receivable........... 28,127 1,526 3,519 12,716 3,483 Receivable from the Manager................. -- 15,357 8,596 3,545 4,127 Receivable for Capital Stock sold........... -- 1,712 1,541 18,399 87,641 Receivable for securities sold.............. -- -- 78,976 -- -- Other....................................... -- 11,362 -- -- -- ---------- ---------- ---------- ---------- ----------- Total Assets................................ 5,715,204 7,568,929 5,361,159 6,099,189 16,959,925 ---------- ---------- ---------- ---------- ----------- LIABILITIES: Payable for securities purchased............ 36,433 384,490 88,168 27,304 75,488 Payable for Capital Stock redeemed.......... 20,105 2,030 2,350 3,067 364,661 Payable to the Manager...................... 5,113 5,935 3,192 3,841 12,470 Unrealized depreciation on foreign currencies and forward currency contracts....................... -- 57 -- -- -- Accrued expenses and other.................. 14,022 26,936 12,235 8,464 12,587 Total Liabilities........................... 75,673 419,448 105,945 42,676 465,206 ---------- ---------- ---------- ---------- ----------- Net Assets.................................. $5,639,531 $7,149,481 $5,255,214 $6,056,513 $16,494,719 ========== ========== ========== ========== =========== COMPOSITION OF NET ASSETS: Capital Stock, $0.001 at par................ $ 585 $ 671 $ 515 $ 522 $ 1,560 Additional paid-in-capital.................. 5,509,544 8,163,281 5,860,199 5,056,593 13,955,382 Undistributed/accumulated net investment income (loss)................. 208,317 (10,865) 4,896 78,160 (1,419) Undistributed/accumulated net realized gain (loss)................. (263,392) (1,272,193) 183,561 33,628 (3,696) Net unrealized appreciation (depreciation) of investments............ 184,477 83,765 (793,957) 887,610 2,542,892 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies and forward currency contracts........... -- 184,822 -- -- -- ---------- ---------- ---------- ---------- ----------- Net Assets.................................. $5,639,531 $7,149,481 $5,255,214 $6,056,513 $16,494,719 ========== ========== ========== ========== =========== Class 1.................................. $5,639,531 $7,149,481 $5,255,214 $6,056,513 $16,494,719 Class 2 Shares of Capital Stock Outstanding Class 1.................................. 584,592 671,342 514,644 522,461 1,559,570 Class 2 Net Asset Value per Share Class 1.................................. $9.65 $10.65 $10.21 $11.59 $10.58 ===== ====== ====== ====== ====== Class 2..................................
- --------------- See Notes to Financial Statements. -- p-53-- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Statements of Operations - --------------------------------------------------------------------------------
Seligman Seligman Seligman Communications Seligman Seligman Cash Common and Bond Capital Management Stock Information Portfolio Portfolio Portfolio Portfolio Portfolio --------- ---------- ---------- ----------- ------------ INVESTMENT INCOME: Interest ................................. $383,798 $ 157,382 $799,641 $ 27,408 $ 616,254 Dividends* ............................... -- 119,687 -- 487,720 200,272 -------- ---------- -------- ----------- ----------- Total Investment Income .................. 383,798 277,069 799,641 515,128 816,526 -------- ---------- -------- ----------- ----------- EXPENSES: Management fee ........................... 22,477 168,626 51,819 156,798 1,546,354 Auditing fee ............................. 8,027 20,553 7,758 19,116 79,088 Directors' fees and expenses ............. 4,624 4,803 6,658 5,093 6,641 Legal fee ................................ 2,949 6,824 4,780 5,187 20,667 Custody and related services ............. 2,766 25,049 11,600 35,063 64,586 Registration ............................. 3,278 5,152 4,764 4,913 17,680 Shareholder reports and communications ........................ 1,655 4,840 2,100 4,517 17,737 Shareholder account services ............. -- 8,895 -- -- 28,878 Distribution and service fees -- Class 2 ....................... -- 625 -- -- 8,039 Miscellaneous ............................ 1,222 3,407 4,093 5,213 14,142 -------- ---------- -------- ----------- ----------- Total Expenses Before Waiver/ Reimbursement ......................... 46,998 248,774 93,572 235,900 1,803,812 Waiver/reimbursement of expenses .............................. (13,276) -- (93,572) -- -- -------- ---------- -------- ----------- ----------- Total Expenses After Waiver/ Reimbursement ......................... 33,722 248,774 -- 235,900 1,803,812 -------- ---------- -------- ----------- ----------- Net Investment Income (Loss) ............. 350,076 28,295 799,641 279,228 (987,286) -------- ---------- -------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments ........................... (115,348) 11,018,398 (107) 2,170,179 17,691,316 Net realized loss from foreign currency transactions ................. -- -- -- -- -- Net change in unrealized appreciation/depreciation of investments ........................ 330,845 (9,230,182) -- (6,574,404) (93,120,418) 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 .......................... 215,497 1,788,216 (107) (4,404,225) (75,429,102) -------- ---------- -------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ $565,573 $1,816,511 $799,534 $(4,124,997) $(76,416,388) ======== ========== ======== =========== ============ - -------------------- *Net of foreign tax withheld as follows: $ -- $ -- $ -- $ 5,251 $ 186 See Notes to Financial Statements.
-- P-54 --
Seligman Seligman Seligman Seligman Seligman Global Smaller Global High-Yield Frontier Global Growth Companies Technology Bond Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ----------- ----------- ----------- ----------- INVESTMENT INCOME: Interest ................................. $ 30,186 $ 11,183 $ 48,169 $ 204,867 $ 2,144,348 Dividends* ............................... 18,927 57,640 123,169 60,111 258,919 ----------- ----------- ----------- ----------- ----------- Total Investment Income .................. 49,113 68,823 171,338 264,978 2,403,267 ----------- ----------- ----------- ----------- ----------- EXPENSES: Management fee ........................... 168,987 94,384 185,980 316,305 102,563 Auditing fee ............................. 13,413 9,407 12,596 17,351 12,795 Directors' fees and expenses ............. 4,843 4,754 4,767 4,836 4,913 Legal fee ................................ 3,889 3,285 4,015 5,725 3,983 Custody and related services ............. 65,094 32,498 34,814 34,576 26,338 Registration ............................. 4,107 4,862 5,314 10,327 4,309 Shareholder reports and communications ........................ 3,043 1,994 2,621 3,766 2,898 Shareholder account services ............. -- -- -- 18,358 -- Distribution and service fees -- Class 2 ....................... -- -- -- 1,795 -- Miscellaneous ............................ 2,487 9,843 7,527 2,322 2,154 ----------- ----------- ----------- ----------- ----------- Total Expenses Before Waiver/ Reimbursement ......................... 265,863 161,027 257,634 415,361 159,953 Waiver/reimbursement of expenses .............................. (51,806) (28,897) -- -- (16,378) ----------- ----------- ----------- ----------- ----------- Total Expenses After Waiver/ Reimbursement ......................... 214,057 132,130 257,634 415,361 143,575 ----------- ----------- ----------- ----------- ----------- Net Investment Income (Loss) ............. (164,944) (63,307) (86,296) (150,383) 2,259,692 ----------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments ........................... 1,269,407 3,546,035 1,635,867 3,188,559 (2,523,874) Net realized loss from foreign currency transactions ................. -- (475,498) (161,603) (443,395) -- Net change in unrealized appreciation/depreciation of investments ........................ (3,607,941) (4,473,781) (3,534,739) (12,355,108) (1,474,956) Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts ........ -- 229,684 (438,248) 441,841 -- ----------- ----------- ----------- ----------- ----------- Net Gain (Loss) on Investments and Foreign Currency Transactions .......................... (2,338,534) (1,173,560) (2,498,723) (9,168,103) (3,998,830) ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ $(2,503,478) $(1,236,867) $(2,585,019) $(9,318,486) $(1,739,138) =========== =========== =========== =========== =========== - -------------------- *Net of foreign tax withheld as follows: $ 302 $ 6,118 $ 12,064 $ 3,715 $ --
Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- For the Year Ended December 31, 2000 - --------------------------------------------------------------------------------
Seligman Seligman Seligman Seligman International Large-Cap Large-Cap Small-Cap Income Growth Growth Value Value Portfolio Portfolio Portfolio Portfolio Portfolio --------- ----------- ----------- ----------- ----------- INVESTMENT INCOME: Interest ................................. $ 204,859 $ 21,733 $ 27,457 $ -- $ 9,710 Dividends* ............................... 52,793 50,998 22,457 121,675 49,068 --------- ----------- ----------- ----------- ----------- Total Investment Income .................. 257,652 72,731 49,914 121,675 58,778 --------- ----------- ----------- ----------- ----------- EXPENSES: Management fee ........................... 28,122 87,653 44,714 42,156 75,163 Auditing fee ............................. 8,076 9,124 7,539 7,401 8,222 Directors' fees and expenses ............. 4,666 4,562 4,850 4,792 4,785 Legal fee ................................ 3,115 3,216 2,605 2,945 3,262 Custody and related services ............. 5,250 63,238 9,035 583 2,410 Registration ............................. 3,627 4,618 3,884 3,636 3,435 Shareholder reports and communications ........................ 1,707 1,845 1,737 1,587 1,775 Shareholder account services ............. -- -- -- -- 8,785 Distribution and service fees-- Class 2 ........................ -- -- -- -- -- Miscellaneous ............................ 3,752 3,931 1,324 1,370 1,329 --------- ----------- ----------- ----------- ----------- Total Expenses Before Waiver/ Reimbursement ......................... 58,315 178,187 75,688 64,470 109,166 Waiver/reimbursement of expenses .............................. (16,141) (55,490) (30,974) (22,314) (34,003) --------- ----------- ----------- ----------- ----------- Total Expenses After Waiver/ Reimbursement ......................... 42,174 122,697 44,714 42,156 75,163 --------- ----------- ----------- ----------- ----------- Net Investment Income (Loss) ............. 215,478 (49,966) 5,200 79,519 (16,385) --------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments ........................... (262,142) (402,760) 188,316 57,632 55,566 Net realized loss from foreign currency transactions ................. -- (876,521) -- -- -- Net change in unrealized appreciation/depreciation of investments ........................ (98,792) (2,548,051) (1,413,665) 1,097,636 2,638,611 Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts ........ -- 302,991 -- -- -- --------- ----------- ----------- ----------- ----------- Net Gain (Loss) on Investments and Foreign Currency Transactions .......................... (360,934) (3,524,341) (1,225,349) 1,155,268 2,694,177 --------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ $(145,456) $(3,574,307) $(1,220,149) $ 1,234,787 $ 2,677,792 ========= =========== =========== =========== =========== - -------------------- *Net of foreign tax withheld as follows: $ 550 $ 6,865 $ 92 $ -- $ -- See Notes to Financial Statements.
-- P-55 -- 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, ----------------------- -------------------------- -------------------------- 2000 1999 2000 1999 2000 1999 ---------- ---------- ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss)............. $ 350,076 $ 349,655 $ 28,295 $ 7,323 $ 799,641 $ 737,469 Net realized gain (loss) on investments.. (115,348) (228,598) 11,018,398 7,533,936 (107) 1,233 Net realized gain (loss) from foreign currency transactions......... -- -- -- -- -- -- Net change in unrealized appreciation/ depreciation of investments........... 330,845 (454,121) (9,230,182) 2,159,898 -- -- Netchange 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....................... 565,573 (333,064) 1,816,511 9,701,157 799,534 738,702 ---------- ---------- ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... -- (353,096) -- (8,682) (799,641) (737,469) Realized gain on investments: Class 1............................... -- -- (1,883,592) (6,178,894) -- -- Class 2............................... -- -- (67,345) -- -- -- ---------- ---------- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions.................... -- (353,096) (1,950,937) (6,187,576) (799,641) (737,469) ---------- ---------- ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1............................... 3,192,081 3,696,281 20,226,591 8,798,590 67,583,046 45,713,281 Class 2............................... -- -- 1,892,120 -- -- -- Shares issued in payment of: Dividends -- Class 1.................. -- 353,096 -- 8,682 799,641 737,469 Gain distributions: Class 1............................... -- -- 1,883,592 6,178,894 -- -- Class 2............................... -- -- 67,345 -- -- -- ---------- ---------- ----------- ----------- ----------- ----------- Total.................................... 3,192,081 4,049,377 24,069,648 14,986,166 68,382,687 46,450,750 ---------- ---------- ----------- ----------- ----------- ----------- Cost of shares redeemed: Class 1............................... (2,222,183) (5,736,425) (12,738,591) (15,054,648) (73,675,795) (39,360,497) Class 2............................... -- -- (75,605) -- -- -- ---------- ---------- ----------- ----------- ----------- ----------- Total.................................... (2,222,183) (5,736,425) (12,814,196) (15,054,648) (73,675,795) (39,360,497) ---------- ---------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Capital Share Transactions............ 969,898 (1,687,048) 11,255,452 (68,482) (5,293,108) 7,090,253 ---------- ---------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets........ 1,535,471 (2,373,208) 11,121,026 3,445,099 (5,293,215) 7,091,486 Net Assets: Beginning of year........................ 4,947,148 7,320,356 27,585,793 24,140,694 17,611,381 10,519,895 ---------- ---------- ----------- ----------- ----------- ----------- End of Year.............................. $6,482,619 $4,947,148 $38,706,819 $27,585,793 $12,318,166 $17,611,381 ========== ========== =========== =========== =========== =========== - -------------------- * The Portfolio began offering Class 2 shares on August 30, 2000. ** The Portfolio began offering Class 2 shares on May 1, 2000. See Notes to Financial Statements.
-- P-56 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Seligman Seligman Common Stock Communications and Portfolio Information Portfolio** ------------------------- --------------------------- Year Ended December 31, Year Ended December 31, ------------------------- --------------------------- 2000 1999 2000 1999 ----------- ----------- ------------ ------------ OPERATIONS: Net investment income (loss)............. $ 279,228 $ 740,840 $ (987,286) $ (733,224) Net realized gain (loss) on investments.. 2,170,179 10,832,866 17,691,316 50,179,223 Net realized gain (loss) from foreign currency transactions......... -- -- -- -- Net change in unrealized appreciation/ depreciation of investments........... (6,574,404) (4,409,218) (93,120,418) 49,869,648 Netchange 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....................... (4,124,997) 7,164,488 (76,416,388) 99,315,647 ----------- ----------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... (11,162) (731,802) -- -- Realized gain on investments: Class 1............................... (1,415,290) (9,413,530) (17,492,731) (31,388,512) Class 2............................... -- -- (1,013,510) -- ----------- ----------- ------------ ------------ Decrease in Net Assets From Distributions.................... (1,426,452) (10,145,332) (18,506,241) (31,388,512) ----------- ----------- ------------ ------------ CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1............................... 13,873,150 18,687,094 70,820,745 58,041,904 Class 2............................... -- -- 14,089,125 -- Shares issued in payment of: Dividends -- Class 1.................. 11,162 731,802 -- -- Gain distributions: Class 1............................... 1,415,290 9,413,530 17,492,731 31,388,512 Class 2............................... -- -- 1,013,510 -- ----------- ----------- ------------ ------------ Total.................................... 15,299,602 28,832,426 103,416,111 89,430,416 ----------- ----------- ------------ ------------ Cost of shares redeemed: Class 1............................... (24,313,051) (41,136,919) (83,705,844) (65,675,233) Class 2............................... -- -- (3,025,477) -- ----------- ----------- ------------ ------------ Total.................................... (24,313,051) (41,136,919) (86,731,321) (65,675,233) ----------- ----------- ------------ ------------ Increase (Decrease) in Net Assets from Capital Share Transactions............ (9,013,449) (12,304,493) 16,684,770 23,755,183 ----------- ----------- ------------ ------------ Increase (Decrease) in Net Assets........ (14,564,898) (15,285,337) (78,237,839) 91,682,318 Net Assets: Beginning of year........................ 47,302,721 62,588,058 213,961,249 122,278,931 ----------- ----------- ------------ ------------ End of Year.............................. $32,737,823 $47,302,721 $135,723,410 $213,961,249 =========== =========== ============ ============
Seligman Seligman Global Growth Frontier Portfolio Portfolio ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, ------------------------- ------------------------- 2000 1999 2000 1999 ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss)............. $ (164,944) $ (184,506) $ (63,307) $ (36,124) Net realized gain (loss) on investments.. 1,269,407 693,862 3,546,035 1,718,575 Net realized gain (loss) from foreign currency transactions......... -- -- (475,498) (54,259) Net change in unrealized appreciation/ depreciation of investments........... (3,607,941) 1,462,795 (4,473,781) 2,817,010 Netchange in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. -- -- 229,684 (222,964) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Operations....................... (2,503,478) 1,972,151 (1,236,867) 4,222,238 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... -- -- -- -- Realized gain on investments: Class 1............................... -- -- (130,681) (1,134,348) Class 2............................... -- -- -- -- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions.................... -- -- (130,681) (1,134,348) ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS: Proceeds from sale of shares: Class 1............................... 53,005,443 23,520,563 9,426,103 3,291,118 Class 2............................... -- -- -- -- Shares issued in payment of: Dividends -- Class 1.................. -- -- -- -- Gain distributions: Class 1............................... -- -- 130,681 1,134,348 Class 2............................... -- -- -- -- ----------- ----------- ----------- ----------- Total.................................... 53,005,443 23,520,563 9,556,784 4,425,466 ----------- ----------- ----------- ----------- Cost of shares redeemed: Class 1............................... (59,196,569) (38,934,551) (11,730,170) (4,267,898) Class 2............................... -- -- -- -- ----------- ----------- ----------- ----------- Total.................................... (59,196,569) (38,934,551) (11,730,170) (4,267,898) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Capital Share Transactions............ (6,191,126) (15,413,988) (2,173,386) 157,568 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets........ (8,694,604) (13,441,837) (3,540,934) 3,245,458 Net Assets: Beginning of year........................ 25,705,834 39,147,671 11,888,753 8,643,295 ----------- ----------- ----------- ----------- End of Year.............................. $17,011,230 $25,705,834 $ 8,347,819 $11,888,753 =========== =========== =========== =========== - -------------------- * The Portfolio began offering Class 2 shares on August 30, 2000. ** The Portfolio began offering Class 2 shares on May 1, 2000. See Notes to Financial Statements.
-- P-57 -- 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, ------------------------ ------------------------- -------------------------- 2000 1999 2000 1999 2000 1999 ----------- ----------- ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss)............. $ (86,296) $ (82,322) $ (150,383) $ (54,880) $ 2,259,692 $ 3,099,027 Net realized gain (loss) on investments.. 1,635,867 961,203 3,188,559 2,982,910 (2,523,874) (2,143,090) Net realized gain (loss) from foreign currency transactions................. (161,603) (191,782) (443,395) (34,676) -- -- Net change in unrealized appreciation/ depreciation of investments........... (3,534,739) 3,647,161 (12,355,108) 7,971,407 (1,474,956) (1,145,943) Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. (438,248) (36,178) 441,841 10,176 -- -- ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Operations....................... (2,585,019) 4,298,082 (9,318,486) 10,874,937 (1,739,138) (190,006) ----------- ----------- ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... -- -- -- -- (6,950) (3,116,594) Realized gain on investments: Class 1............................... (499,106) -- (955,070) (1,874,628) -- -- Class 2............................... -- -- (124,689) -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions.................... (499,106) -- (1,079,759) (1,874,628) (6,950) (3,116,594) ----------- ----------- ----------- ----------- ----------- ----------- CAPITAL SHARE TRANSACTIONS:** Proceeds from sale of shares: Class 1............................... 3,552,677 2,425,180 28,608,193 22,424,095 4,487,803 15,071,625 Class 2............................... -- -- 4,526,330 -- -- -- Shares issued in payment of: Dividends -- Class 1.................. -- -- -- -- 6,950 3,116,594 Gain distributions: Class 1............................... 499,106 -- 955,070 1,874,628 -- -- Class 2............................... -- -- 124,689 -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total.................................... 4,051,783 2,425,180 34,214,282 24,298,723 4,494,753 18,188,219 ----------- ----------- ----------- ----------- ----------- ----------- Cost of shares redeemed: Class 1............................... (6,226,540) (7,968,678) (16,926,767) (17,341,656) (14,560,577) (20,242,419) Class 2............................... -- -- (207,045) -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- (6,226,540) (7,968,678) (17,133,812) (17,341,656) (14,560,577) (20,242,419) ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Capital Share Transactions............ (2,174,757) (5,543,498) 17,080,470 6,957,067 (10,065,824) (2,054,200) ----------- ----------- ----------- ----------- ----------- ----------- Increase in Net Assets................... (5,258,882) (1,245,416) 6,682,225 15,957,376 (11,811,912) (5,360,800) Net Assets: Beginning of period...................... 19,568,646 20,814,062 22,087,347 6,129,971 26,892,008 32,252,808 ----------- ----------- ----------- ----------- ----------- ----------- End of Period............................ $14,309,764 $19,568,646 $28,769,572 $22,087,347 $15,080,096 $26,892,008 =========== =========== =========== =========== =========== ===========
- ------------------- **The Portfolio began offering Class 2 shares on May 1, 2000. ***Commencement of operations. See Notes to Financial Statements. -- P-58 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Seligman Seligman Seligman International Growth Large-Cap Income Portfolio Portfolio Growth Portfolio ------------------------ ------------------------- ------------------------- Year Ended December 31, Year Ended December 31, Year 5/1/99*** ------------------------ ------------------------- Ended to 2000 1999 2000 1999 12/31/00 12/31/99 ---------- ---------- ---------- ----------- ---------- ---------- OPERATIONS: Net investment income (loss)............. $ 215,478 $ 420,100 $ (49,966) $ 31,302 $ 5,200 $ (524) Net realized gain (loss) on investments.. (262,142) 779,879 (402,760) 1,862,678 188,316 (4,755) Net realized gain (loss) from foreign currency transactions................. -- -- (876,521) (148,777) -- -- Net change in unrealized appreciation/ depreciation of investments........... (98,792) (931,859) (2,548,051) 789,435 (1,413,665) 619,708 Net change in unrealized appreciation/ depreciation on translation of assets and liabilities denominated in foreign currencies and forward currency contracts............................. -- -- 302,991 (285,019) -- -- ---------- ---------- ---------- ----------- ---------- ---------- Increase (Decrease) in Net Assets From Operations....................... (145,456) 268,120 (3,574,307) 2,249,619 (1,220,149) 614,429 ---------- ---------- ---------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... (8,835) (413,971) (90,781) -- -- -- Realized gain on investments: Class 1............................... (15,903) (691,269) (273,623) (1,396,893) -- -- Class 2............................... -- -- -- -- -- -- ---------- ---------- ---------- ----------- ---------- ---------- Decrease in Net Assets From Distributions.................... 24,738) (1,105,240) (364,404) (1,396,893) -- -- ---------- ---------- ---------- ----------- ---------- ---------- CAPITAL SHARE TRANSACTIONS:** Proceeds from sale of shares: Class 1............................... 954,328 1,887,360 3,381,024 1,464,332 6,333,690 2,683,558 Class 2............................... -- -- -- -- -- -- Shares issued in payment of: Dividends -- Class 1.................. 8,835 413,971 90,781 -- -- -- Gain distributions: Class 1............................... 15,903 691,269 273,623 1,396,893 -- -- Class 2............................... -- -- -- -- -- -- ---------- ---------- ---------- ----------- ---------- ---------- Total.................................... 979,066 2,992,600 3,745,428 2,861,225 6,333,690 2,683,558 ---------- ---------- ---------- ----------- ---------- ---------- Cost of shares redeemed: Class 1............................... (3,763,855) (8,143,191) (2,905,725) (3,358,291) (3,526,701) (172,873) Class 2............................... -- -- -- -- -- -- ---------- ---------- ---------- ----------- ---------- ---------- (3,763,855) (8,143,191) (2,905,725) (3,358,291) (3,526,701) (172,873) ---------- ---------- ---------- ----------- ---------- ---------- Increase (Decrease) in Net Assets from Capital Share Transactions............ (2,784,789) (5,150,591) 839,703 (497,066) 2,806,989 2,510,685 ---------- ---------- ---------- ----------- ---------- ---------- Increase in Net Assets................... (2,954,983 (5,987,711) (3,099,008) 355,660 1,586,840 3,125,114 Net Assets: Beginning of period...................... 8,594,514 14,582,225 10,248,489 9,892,829 3,668,374 543,260 ---------- ---------- ---------- ----------- ---------- ---------- End of Period............................ $5,639,531 $8,594,514 $7,149,481 $10,248,489 $5,255,214 $3,668,374 ========== ========== ========== =========== ========== ==========
Seligman Seligman Large-Cap Small-Cap Value Portfolio Value Portfolio ------------------------ -------------------------- Year Ended December 31, Year Ended December 31, ------------------------ -------------------------- 2000 1999 2000 1999 ---------- ---------- ----------- ---------- OPERATIONS: Net investment income (loss)............. $ 79,519 $ 64,106 $ (16,385) $ (11,090) Net realized gain (loss) on investments.. 57,632 54,497 55,566 969,509 Net realized gain (loss) from foreign currency transactions................. -- -- -- -- Net change in unrealized appreciation/ depreciation of investments........... 1,097,636 (318,566) 2,638,611 68,618 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....................... 1,234,787 (199,963) 2,677,792 1,027,037 ---------- ---------- ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income -- Class 1......... (1,006) (67,324) -- -- Realized gain on investments: Class 1............................... (40,726) -- (216,863) (785,429) Class 2............................... -- -- -- -- ---------- ---------- ----------- ---------- Decrease in Net Assets From Distributions.................... (41,732) (67,324) (216,863) (785,429) ---------- ---------- ----------- ---------- CAPITAL SHARE TRANSACTIONS:** Proceeds from sale of shares: Class 1............................... 2,996,048 4,766,032 12,973,661 3,118,001 Class 2............................... -- -- -- -- Shares issued in payment of: Dividends -- Class 1.................. 1,006 67,324 -- -- Gain distributions: Class 1............................... 40,726 -- 216,863 785,429 Class 2............................... -- -- -- -- ---------- ---------- ----------- ---------- Total.................................... 3,037,780 4,833,356 13,190,524 3,903,430 ---------- ---------- ----------- ---------- Cost of shares redeemed: Class 1............................... (3,932,202) (2,654,012) (3,560,102) (2,210,601) Class 2............................... -- -- -- -- ---------- ---------- ----------- ---------- (3,932,202) (2,654,012) (3,560,102) (2,210,601) ---------- ---------- ----------- ---------- Increase (Decrease) in Net Assets from Capital Share Transactions............ (894,422) 2,179,344 9,630,422 1,692,829 ---------- ---------- ----------- ---------- Increase in Net Assets................... 298,633 1,912,057 12,091,351 1,934,437 Net Assets: Beginning of period...................... 5,757,880 3,845,823 4,403,368 2,468,931 ---------- ---------- ----------- ---------- End of Period............................ $6,056,513 $5,757,880 $16,494,719 $4,403,368 ========== ========== =========== ==========
- ---------------------- **The Portfolio began offering Class 2 shares on May 1, 2000. ***Commencement of operations. See Notes to Financial Statements. -- P-59 -- 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 ("Global Growth Portfolio"), Seligman Global Smaller Companies Portfolio ("Global Smaller Companies Portfolio"),Seligman Global Technology Portfolio ("Global Technology Portfolio"), Seligman High-Yield Bond Portfolio ("High-Yield Bond Portfolio"), Seligman Income Portfolio ("Income Portfolio"), Seligman International Growth 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 an investment medium for variable annuity separate accounts established and offered by various insurance companies, and effective March 24, 2000, shares of the Fund are available as an investment vehicle of variable life insurance separate accounts. 2. Multiple Classes of Shares -- Effective May 1, 2000, the Fund began offering a second class of shares, Class 2 shares of each Portfolio, in addition to the class of shares that have been offered since inception. All shares existing prior to May 1, 2000, have been classified as Class 1 shares. Class 2 shares pay an annual 12b-1 fee of up to 0.25% of average daily net assets. Class 1 shares do not pay 12b-1 fees. The two classes of shares represent interests in the same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate class-specific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required. 3. Significant Accounting Policies -- The financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from these estimates. The following summarizes the significant accounting policies of the Fund: a. Security Valuation --Investments in US Government andGovernment Agency securities, bonds, asset-backed securities, convertible securities, and stocks are valued at the most current market values or, in their absence, at fair market values determined in accordance with procedures approved by the Board of Directors. Securities traded on an exchange are valued at the last sales price or, in its absence and in the case of over-the-counter securities, at the mean of closing bid and asked prices. Short-term holdings maturing in 60 days or less are valued at amortized cost. Investments held by Cash Management Portfolio are generally valued using the amortized cost method which approximates fair value. Investments of certain other funds in the Seligman Group of Investment Companies purchased to offset the Cash Management Portfolio's liability for deferred directors' fees are valued at current net asset 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 distributed to shareholders of the Portfolios. The rate of exchange between the US dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and from the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Portfolios' books, and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of portfolio securities and other foreign currency denominated assets and liabilities at period end, resulting from changes in exchange rates. -- P-60 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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. Multiple Class Allocations -- All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses of a Portfolio are allocated daily to each class of shares based upon the relative value of shares of each class. Class-specific expenses, which include 12b-1 fees and any other items that are specifically attributable to a particular class, are charged directly to such class. For the period ended December 31, 2000, 12b-1 fees were the only class-specific expenses. g. 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. h. 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. i. 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 realized capital gain and the recharacterization of foreign exchange gains or losses to either ordinary income or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassification will have no effect on net assets, results of operations, or net asset values per share of the Portfolios. 4. Purchases and Sales of Securities -- Purchases and sales of portfolio securities, excluding US Government obligations and short-term investments, for the year ended December 31, 2000, were as follows: Portfolio Purchases Sales --------- --------- ----------- Bond $ 2,978,285 $ 3,055,856 Capital 99,216,855 89,451,867 Common Stock 18,370,693 27,610,315 Communications and Information 204,359,978 211,531,977 Frontier 33,224,941 41,294,790 -- P-61 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- Portfolio Purchases Sales --------- --------- ----------- Global Growth $11,644,397 $14,378,987 Global Smaller Companies 14,888,998 18,441,484 Global Technology 50,291,190 38,279,107 High-Yield Bond 5,685,172 12,044,489 Income 3,717,889 6,232,193 International Growth 23,789,902 23,212,023 Large-Cap Growth 13,174,616 10,272,767 Large-Cap Value 2,229,821 3,228,440 Small-Cap Value 12,492,517 3,228,677 For the year ended December 31, 2000, purchases and sales of US Government obligations were $1,536,362 and $99,939, respectively, for the Bond Portfolio, and $497,637 and $814,206, respectively, for the Income Portfolio. Identified cost of investments sold is used for both financial statement and federal income tax purposes. At December 31, 2000, 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 $ 187,161 $ 51,305 Capital 4,871,952 5,380,934 Common Stock 8,408,919 3,680,277 Communications and Information 10,797,084 31,598,556 Frontier 3,354,967 1,563,775 Global Growth 879,890 593,074 Global Smaller Companies 3,330,851 2,029,330 Global Technology 1,765,059 4,558,464 High-Yield Bond 212,154 4,636,008 Income 731,429 546,952 International Growth 672,050 401,759 Large-Cap Growth 315,131 1,109,088 Large-Cap Value 1,213,700 326,090 Small-Cap Value 3,337,589 794,697 5. 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 paid 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 Subadivser 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-62 -- 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 with respect to Seligman Global Growth Portfolio, Seligman Global Technology Portfolio, and Seligman International Growth Portfolio (the "Global Portfolios"). During the notice period, the Subadviser continued 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 assumed full responsibility for the non-US investments of the Global Portfolios. The Subadviser continues to act as subadviser with respect to Seligman Global Smaller Companies Portfolio's non-US investments. The Manager has agreed to reimburse expenses, other than the management and 12b-1 fees, 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 and 12b-1 fees, 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 and 12b-1 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, 2000 are disclosed in the Statements of Operations. Compensation of all officers of the Fund, all directors of the Fund who are employees of the Manager, and all personnel of the Fund and the Manager is paid by the Manager. Seligman Advisors, Inc. (the "Distributor"), a subsidiary of the Manager, acts as distributor of shares of the Fund and of contracts issued by variable annuity separate accounts of one insurance company and its affiliates. For the year ended December 31, 2000, the Distributor earned fees of $69,960 for distributing such contracts. Under a Rule 12b-1 plan (the "Plan") adopted by the Fund with respect to Class 2 shares of each Portfolio, insurance companies or their affiliates can enter into agreements with the Distributor and receive 12b-1 fees of up to 0.25%, on an annual basis, of the average daily net assets of Class 2 shares attributable to the particular insurance company for providing, among other things, personal services and/or the maintenance of shareholder accounts. Such fees are paid quarterly by each Portfolio to Seligman Advisors pursuant to the Plan. For the period ended December 31, 2000, fees incurred under the Plan aggregated $625 and $8,039, or 0.25% per annum and $1,795, or 0.15% per annum of the average daily net assets of Class 2 shares of Capital Portfolio, Communications and Information Portfolio and Global Technology Portfolio, respectively. Certain officers and directors of the Fund are officers or directors of the Manager and the Distributor. The Fund has a compensation arrangement under which directors who receive fees may elect to defer receiving such fees. Directors may elect to have their deferred fees accrue interest or earn a return based on the performance of the other funds in the Seligman Group of Investment Companies. The cost of such fees and earnings accrued thereon is included in directors' fees and expenses, and the accumulated balances at December 31, 2000, are included in other liabilities. Deferred fees and related accrued earnings are not deductible by the Fund for federal income tax purposes until such amounts are paid. 6. Capital Loss Carryforward -- At December 31, 2000, the Bond, High-Yield Bond, Income and International Growth Portfolios had net capital loss carryforwards for federal income tax purposes of $343,082, $4,441,159, $189,916 and $1,085,996, respectively, which are available for offset against future taxable net capital gains. These net capital loss carryforwards expiring in various amounts through 2008. Accordingly, no capital gain distributions are expected to be paid to shareholders of these portfolios until net capital gains have been realized in excess of the available capital loss carryforwards. 7. Outstanding Forward Exchange Currency Contracts -- At December 31, 2000, the Fund had outstanding forward exchange currency contracts to sell foreign currencies as follows:
Foreign In Exchange Settlement US $ Unrealized Contract Currency for US $ Date Value Depreciation -------- -------- ----------- --------- --------- ----------- GLOBAL GROWTH PORTFOLIO Sales: British pounds ............... 20,599 30,801 1/2/01 30,826 $ (26) British pounds ............... 17,082 25,543 1/3/01 25,563 (20) Hong Kong dollars ............ 223,505 28,655 1/2/01 28,655 -- ------- $ (46) ======= INTERNATIONAL GROWTH PORTFOLIO Sales: British pounds ............... 25,848 38,651 1/2/01 38,682 $ (31) British pounds ............... 21,400 31,999 1/3/01 32,025 (26) ------- $ (57) =======
-- P-63 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- 8. Capital Stock Transactions -- At December 31, 2000, 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 ----------------------- ------------------------------------ ----------------------- Class 1 Class 2 ----------------------- --------- Year Ended December 31, Year Ended December 31, 8/30/00* Year Ended December 31, ----------------------- ----------------------- ----------------------- 2000 1999 2000 1999 to 12/31/00 2000 1999 ------- -------- ------- ------- ----------- ----------------------- Sale of shares .............. 330,153 368,413 743,027 401,662 63,845 67,583,435 45,713,281 Shares issued in payment of dividends ............. -- 37,845 -- 408 -- 799,641 737,469 Shares issued in payment of gain distributions .... -- -- 73,635 290,498 2,634 -- -- -------- -------- -------- -------- ------ ----------- ----------- Total ....................... 330,153 406,258 816,662 692,568 66,479 68,383,076 46,450,750 -------- -------- -------- -------- ------ ----------- Shares redeemed ............. (229,491) (577,822) (466,047) (698,555) (2,907) (73,675,795) (39,360,497) -------- -------- -------- -------- ------ ----------- ----------- Increase (decrease) in shares 100,662 (171,564) 350,615 (5,987) 63,572 (5,292,719) 7,090,253 ======== ======== ======== ======== ====== =========== ===========
Communications and Information Portfolio Common Stock ---------------------------------------- Portfolio Class 1 Class 2 ----------------------- -------------------------- --------- Year Ended December 31, Year Ended December 31, ----------------------- -------------------------- 5/1/00* 2000 1999 2000 1999 to 12/31/00 --------- -------- --------- -------- ----------- Sale of shares...................... 881,019 960,847 2,633,071 2,745,361 605,427 Shares issued in payment of dividends..................... 775 45,089 -- -- -- Shares issued in payment of gain distributions............ 98,284 580,008 1,127,836 1,287,998 65,430 ---------- ---------- ---------- ---------- -------- Total............................... 980,078 1,585,944 3,760,907 4,033,359 670,857 ---------- ---------- ---------- ---------- -------- Shares redeemed..................... (1,527,300) (2,098,043) (3,142,388) (3,152,170) (142,338) ---------- ---------- ---------- ---------- -------- Increase (decrease) in shares....... (547,222) (512,099) 618,519 881,189 528,519 ========== ========== ========== ========== ========
Frontier Global Growth Global Smaller Portfolio Portfolio Companies Portfolio ----------------------- ----------------------- --------------------------- Year Ended December 31, Year Ended December 31, Year Ended December 31, ------------------------ ----------------------- --------------------------- 2000 1999 2000 1999 2000 1999 --------- ------------ -------- -------- -------- --------- Sale of shares...................... 3,038,751 1,649,550 550,559 217,292 210,989 174,796 Shares issued in payment of dividends..................... -- -- -- -- -- -- Shares issued in payment of gain distributions............ -- -- 8,497 68,170 35,124 -- ---------- ---------- -------- -------- -------- ------- Total............................... 3,038,751 1,649,550 559,056 285,462 246,113 174,796 ---------- ---------- -------- -------- -------- ------- Shares redeemed..................... (3,342,110) (2,748,676) (659,305) (281,349) (371,823) (583,501) ---------- ---------- -------- -------- -------- ------- Increase (decrease) in shares....... (303,359) (1,099,126) (100,249) 4,113 (125,710) (408,705) ========== ========== ======== ======== ======== =======
- ------------------- * Commencement of offering of shares. -- P-64 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Global Technology Portfolio ------------------------------------- High-Yield Bond Class 1 Class 2 Portfolio ----------------------- --------- ------------------------ Year Ended December 31, Year Ended December 31, ----------------------- 5/1/00* ------------------------ 2000 1999 to 12/31/00 2000 1999 -------- ----------- ------------ --------- --------- Sale of shares...................... 1,003,883 1,185,726 171,741 486,316 1,398,390 Shares issued in payment of dividends..................... -- -- -- 792 325,663 Shares issued in payment of gain distributions............ 45,785 77,240 5,980 -- -- --------- --------- --------- ---------- ---------- Total............................... 1,049,668 1,262,966 177,721 487,108 1,724,053 --------- --------- --------- ---------- ---------- Shares redeemed..................... (595,418) (899,796) (8,881) (1,563,213) (1,887,102) --------- --------- --------- ---------- ---------- Increase (decrease) in shares....... 454,250 363,170 168,840 (1,076,105) (163,049) ========= ========= ========= ========== ==========
Income International Growth Large-Cap Growth Portfolio Portfolio Portfolio ----------------------- ----------------------- ------------------------ Year Ended December 31, Year Ended December 31, ----------------------- ----------------------- Year Ended 5/1/99** 2000 1999 2000 1999 12/31/00 to 12/31/99 --------- --------- -------- -------- --------- -------- Sale of shares...................... 96,861 175,401 251,107 89,554 515,577 263,099 Shares issued in payment of dividends..................... 912 42,285 8,687 -- -- -- Shares issued in payment of gain distributions............ 1,641 70,610 26,184 89,832 -- -- -------- -------- -------- -------- -------- -------- Total............................... 99,414 288,296 285,978 179,386 515,577 263,099 -------- -------- -------- -------- -------- -------- Shares redeemed..................... (382,273) (745,147) (231,080) (206,695) (302,659) (15,699) -------- -------- -------- -------- -------- -------- Increase (decrease) in shares....... (282,859) (456,851) 54,898 (27,309) 212,918 247,400 ======== ======== ======== ======== ======== ========
Large-Cap Value Small-Cap Value Portfolio Portfolio ----------------------- ----------------------- Year Ended December 31, Year Ended December 31, ----------------------- ----------------------- 2000 1999 2000 1999 --------- --------- -------- -------- Sale of shares...................... 308,400 486,900 1,373,011 400,968 Shares issued in payment of dividends..................... 91 7,447 -- -- Shares issued in payment of gain distributions............ 3,706 -- 22,685 39,088 -------- -------- --------- -------- Total............................... 312,197 494,347 1,395,696 440,056 -------- -------- --------- -------- Shares redeemed..................... (410,367) (271,884) (381,387) (117,123) -------- -------- --------- -------- Increase (decrease) in shares....... (98,170) 222,463 1,014,309 322,933 ======== ======== ========= ========
- ------------------- * Commencement of offering of shares. ** Commencement of operations. 9. Committed Line of Credit --All of the Portfolios, except the Cash Management Portfolio, are participants in a joint $825 million committed line of credit that is shared by substantially all open-end 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 0.10% per annum on its share of the unused portion of the credit facility. The credit facility may be drawn upon only for temporary purposes and is subject to certain other customary restrictions. The credit facility commitment expires in June 2001, but is renewable annually with the consent of the participating banks. For the year ended December 31, 2000, none of the Portfolios borrowed from the credit facility. -- P-65 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Financial Highlights - -------------------------------------------------------------------------------- The tables below are intended to help you understand the financial performance of each Class of each Portfolio for the past five years or from its inception, if less than five years. Certain information reflects financial results for a single share that was held throughout the periods shown. Per share amounts are calcuated using average shares outstanding. "Total return" shows the rate that you would have earned (or lost) on an investment in each Portfolio, assuming you reinvested all your dividends and capital gain distributions. Total returns do not reflect any administrative fees or asset-based sales charges that are associated with variable annuity and variable life insurance contracts, and are not annualized for periods of less than one year.
Bond Portfolio ------------------------------------------------------------ Year Ended December 31, ------------------------------------------------------------ 2000 1999 1998 1997 1996 -------- ------ ------ ------ ------ PER SHARE DATA: Net Asset Value, Beginning of Year ................... $ 9.27 $10.38 $10.24 $ 9.89 $10.44 ------ ------ ------ ------ ------ Income from Investment Operations: Net investment income ................................ 0.60 0.64 0.59 0.54 0.56 Net realized and unrealized gain (loss) on investments 0.35 (1.10) 0.25 0.35 (0.55) ------ ------ ------ ------ ------ Total from Investment Operations ..................... 0.95 (0.46) 0.84 0.89 0.01 ------ ------ ------ ------ ------ Less Distributions: Dividends from net investment income ................. -- (0.65) (0.59) (0.54) (0.56) Distributions from net realized capital gain ......... -- -- (0.11) -- -- ------ ------ ------ ------ ------ Total Distributions .................................. -- (0.65) (0.70) (0.54) (0.56) ------ ------ ------ ------ ------ Net Assets Value, End of Year ........................ $10.22 $ 9.27 $10.38 $10.24 $ 9.89 ====== ====== ====== ====== ====== TOTAL RETURN: ........................................ 10.25% (4.48)% 8.20% 8.98% 0.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted) ............... $6,483 $4,947 $7,320 $7,232 $5,015 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 ............ 6.23% 5.56% 5.58% 6.22% 5.97% Portfolio turnover rate .............................. 63.07% 64.22% 73.31% 170.12% 199.74% Without management fee waiver:++ Ratio of expenses to average net assets .............. 0.84% 0.71% 0.82% 0.83% 0.79% Ratio of net income to average net assets ............ 5.99% 5.45% 5.36% 5.99% 5.78%
- --------------- ++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. See Notes to Financial Statements. -- P-66 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Capital Portfolio ------------------------------------------------------------------- Class 1 Class 2 ---------------------------------------------------------- ------- Year Ended December 31, 8/30/00* ---------------------------------------------------------- to 2000 1999 1998 1997 1996 12/31/00 --------- -------- -------- -------- --------- -------- PER SHARE DATA: Net Asset Value, Beginning of Period ................. $ 23.90 $ 20.81 $ 18.10 $ 16.01 $ 14.91 $ 33.31 ------- ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income ................................ 0.02 0.01 0.04 0.03 0.04 (0.05) Net realized and unrealized gain (loss) on investments 2.06 10.21 3.89 3.35 2.12 (7.28) ------- ------- ------- ------- ------- ------- Total from Investment Operations ..................... 2.08 10.22 3.93 3.38 2.16 (7.33) ------- ------- ------- ------- ------- ------- Less Distributions: Dividends from net investment income ................. -- (0.01) (0.04) (0.03) (0.04) -- Distributions from net realized capital gain ......... (1.30) (7.12) (1.18) (1.26) (1.02) (1.30) ------- ------- ------- ------- ------- ------- Total Distributions .................................. (1.30) (7.13) (1.22) (1.29) (1.06) (1.30) ------- ------- ------- ------- ------- ------- Net Assets Value, End of Period ...................... $ 24.68 $ 23.90 $ 20.81 $ 18.10 $ 16.01 $ 24.68 ======= ======= ======= ======= ======= ======= TOTAL RETURN: ........................................ 8.50% 53.35% 22.19% 21.31% 14.51% (22.15)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) ............. $37,138 $27,586 $24,141 $20,400 $14,313 $ 1,569 Ratio of expenses to average net assets .............. 0.59% 0.59% 0.60% 0.60% 0.59% 0.84%+ Ratio of net income to average net assets ............ 0.07% 0.03% 0.19% 0.16% 0.29% (0.66)%+ Portfolio turnover rate .............................. 230.42% 172.88% 130.86% 93.97% 88.78% 230.42%@ Without management fee waiver:++ Ratio of expenses to average net assets .............. 0.62% Ratio of net income to average net assets ............ 0.14%
Cash Management Portfolio ------------------------------------------------------------------- Year Ended December 31, ------------------------------------------------------------------- 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ PER SHARE DATA: Net Asset Value, Beginning of Year ...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income ................... 0.062 0.050 0.053 0.054 0.053 ------- ------- ------- ------- ------- Total from Investment Operations ........ 0.062 0.050 0.053 0.054 0.053 ------- ------- ------- ------- ------- Less Distributions: Distributions from net investment income (0.062) (0.050) (0.053) (0.054) (0.053) ------- ------- ------- ------- ------- Total Distributions ..................... (0.062) (0.050) (0.053) (0.054) (0.053) ------- ------- ------- ------- ------- Net Assets Value, End of Year ........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= TOTAL RETURN: ........................... 6.38% 5.07% 5.42% 5.52% 5.43% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted) .. $12,318 $17,611 $10,520 $ 8,635 $ 9,755 Ratio of expenses to average net assets . -- -- -- -- -- Ratio of net income to average net assets 6.17% 4.99% 5.30% 5.39% 5.30% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets . 0.72% 0.65% 0.67% 0.79% 0.63% Ratio of net income to average net assets 5.45% 4.34% 4.63% 4.60% 4.67%
- ----------------- * Commencement of offering of shares. + Annualized. ++ The Manager, at its discretion, reimbursed expenses and/or waived management fees for certain periods presented. @ For the year ended December 31, 2000. See Notes to Financial Statements. -- P-67 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Financial Highlights (continued) - --------------------------------------------------------------------------------
Common Stock Portfolio -------------------------------------------------------------- Year Ended December 31, -------------------------------------------------------------- 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ PER SHARE DATA: Net Asset Value, Begining of Year................. $16.61 $ 18.63 $ 16.28 $ 15.92 $ 15.44 ------ ------- ------- ------- ------- Income from Investment Operations: Net investment income.............................. 0.12 0.32 0.29 0.33 0.34 Net realized and unrealized gain (loss) on investments................................... (1.86) 2.03 3.61 3.01 2.79 ------ ------- ------- ------- ------- Total from Investment Operations................... (1.74) 2.35 3.90 3.34 3.13 ------ ------- ------- ------- ------- Less Distributions: Dividends from net investment income............... (0.01) (0.32) (0.31) (0.32) (0.34) Distributions from net realized capital gain....... (0.63) (4.05) (1.24) (2.66) (2.31) ------ ------- ------- ------- ------- Total Distributions................................ (0.64) (4.37) (1.55) (2.98) (2.65) ------ ------- ------- ------- ------- Net Assets Value, End of Year...................... $14.23 $ 16.61 $ 18.63 $ 16.28 $ 15.92 ====== ======= ======= ======= ======= TOTAL RETURN: (10.53)% 13.15% 24.16% 21.31% 20.08% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)............. $32,738 $47,303 $62,588 $50,737 $37,168 Ratio of expenses to average net assets............ 0.60% 0.52% 0.52% 0.53% 0.53% Ratio of net income to average net assets.......... 0.71% 1.30% 1.61% 1.92% 1.99% Portfolio turnover rate............................ 52.01% 38.11% 55.55% 80.13% 50.33%
Communications and Information Portfolio ----------------------------------------------------------------------- Class 1 Class 2 ---------------------------------------------------------- ---------- Year Ended December 31, 5/1/00* ---------------------------------------------------------- to PER SHARE DATA: 2000 1999 1998 1997 1996 12/31/00 ------ ------- ------ ------ ------- --------- Net Asset Value, Beginning of Period $ $26.70 $17.14 $ 13.09 $ 14.69 $ 13.50 $ 30.61 -------- -------- ------- ------- ------- ------- Income from Investment Operations: Net investment income (loss) (0.11) (0.10) (0.08) (0.08) (0.04) (0.08) Net realized and unrealized gain (loss) on investments (9.45) 14.36 4.81 3.13 1.23 (13.41) -------- -------- ------- ------- ------- ------- Total from Investment Operations (9.56) 14.26 4.73 3.05 1.19 (13.49) -------- -------- ------- ------- ------- ------- Less Distributions: Distributions from net realized capital gain (2.32) (4.70) (0.68) (4.65) -- (2.32) -------- -------- ------- ------- ------- ------- Total Distributions (2.32) (4.70) (0.68) (4.65) -- (2.32) -------- -------- ------- ------- ------- ------- Net Asset Value, End of Period $ 14.82 $ 26.70 $ 17.14 $ 13.09 $ 14.69 $ 14.80 ======== ======== ======= ======= ======= ======= TOTAL RETURN: (36.19)% 85.81% 36.49% 22.22% 8.81% (44.40)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $127,901 $213,961 $122,279 $87,633 $60,645 $ 7,822 Ratio of expenses to average net assets 0.87% 0.86% 0.87% 0.87% 0.87% 1.12%+ Ratio of net income (loss) to average net assets (0.48)% (0.51)% (0.56)% (0.49)% (0.32)% (0.61)%+ Portfolio turnover rate 104.41% 118.16% 132.57% 277.14% 167.20% 104.41%@
- -------------------- * Commencement of offering of shares. + Annualized. @ For the year ended December 31, 2000. See Notes to Financial Statements. -- P-68 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Frontier Portfolio Global Growth Portfolio ------------------------------------------ ---------------------------------------------- Year Ended December 31, Year Ended December 31, 5/1/96** ------------------------------------------ ----------------------------------- to PER SHARE DATA: 2000 1999 1998 1997 1996 2000 1999 1998 1997 12/31/96 ------ ------ ------ ------ ------ ------- ------ ------ ------ -------- Net Asset Value, Beginning of Period.... $18.13 $15.55 $15.78 $14.98 $13.56 $18.22 $13.33 $11.03 $ 9.91 $10.00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income from Investment Operations: Net investment income (loss).......... (0.18) (0.10) (0.08) (0.08) (0.06) (0.13) (0.06) (0.01) 0.01 0.01 Net realized and unrealized gain (loss) on investments.. (2.69) 2.68 (0.15) 2.47 3.28 (2.28) 7.31 2.25 1.79 0.02 Net realized and unrealized gain (loss) on foreign currency transactions.. -- -- -- -- -- (0.46) (0.44) 0.14 (0.56) (0.11) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total from Investment Operations............. (2.87) 2.58 (0.23) 2.39 3.22 (2.87) 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) (0.24) (1.92) (0.08) (0.12) -- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total Distributions:...... -- -- -- (1.59) (1.80) (0.24) (1.92) (0.08) (0.12) (0.01) ------ ------ ------ ------ ------ ------ ------ ------ ------ Net Asset Value, End of Period.......... $15.26 $18.13 $15.55 $15.78 $14.98 $15.11 $18.22 $13.33 $11.03 $ 9.91 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL RETURN: (15.83)% 16.59% (1.46)% 16.33% 23.93% (15.78)% 52.49% 21.60% 12.57% (0.78)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted)......... $17,011 $25,706 $39,148 $42,973 $31,672 $8,348 $11,889 $8,643 $5,449 $1,590 Ratio of expenses to average net assets..... 0.95% 0.95% 0.92% 0.89% 0.92% 1.40% 1.40% 1.40% 1.40% 1.40%+ Ratio of net income (loss) to average net assets.. (0.73)% (0.68)% (0.51)% (0.49)% (0.37)% (0.67)% (0.38)% (0.06)% 0.01% 0.37%+ Portfolio turnover rate... 150.67% 57.93% 86.52% 101.68% 119.74% 125.84% 69.18% 48.99% 77.85% 12.99% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.... 1.18% 0.96% 1.71% 1.45% 1.60% 2.11% 6.04%+ Ratio of net income (loss) to average net assets.. (0.96)% (0.69)% (0.98)% (0.43)% (0.26)% (0.70)% (4.27)%+
- --------------- **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-69 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Financial Highlights (continued) - --------------------------------------------------------------------------------
Global Smaller Companies Portfolio --------------------------------------------------- Year Ended December 31, --------------------------------------------------- PER SHARE DATA: 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ Net Asset Value, Beginning of Year............................... $17.48 $13.62 $12.98 $12.87 $11.67 ------ ------ ------ ------ ------ Income from Investment Operations: Net investment income (loss)..................................... (0.09) (0.06) (0.01) 0.02 0.02 Net realized and unrealized gain (loss) on investments........... (1.91) 4.10 1.02 1.17 2.31 Net realized and unrealized gain (loss) on foreign currency transactions................................................... (0.56) (0.18) (0.17) (0.75) (0.16) ------ ------ ------ ------ ------ Total from Investment Operations................................. (2.56) 3.86 0.84 0.44 2.17 ------ ------ ------ ------ ------ Less Distributions: Dividends from net investment income............................. -- -- -- (0.02) (0.02) Distributions from net realized capital gain..................... (0.52) -- (0.20) (0.31) (0.95) ------ ------ ------ ------ ------ Total Distributions:............................................. (0.52) -- (0.20) (0.33) (0.97) ------ ------ ------ ------ ------ Net Asset Value, End of Year..................................... $14.40 $17.48 $13.62 $12.98 $12.87 ====== ====== ====== ====== ====== TOTAL RETURN: (14.63)% 28.34% 6.58% 3.43% 18.66% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................... $14,310 $19,569 $20,814 $20,505 $16,876 Ratio of expenses to average net assets.......................... 1.39% 1.40% 1.40% 1.40% 1.40% Ratio of net income (loss) to average net assets................. (0.46)% (0.46)% (0.06)% 0.24% 0.23% Portfolio turnover rate.......................................... 84.86% 46.75% 66.40% 64.81% 62.31% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.......................... 1.60% 1.50% 1.56% 1.90% Ratio of net income (loss) to average net assets................. (0.66)% (0.16)% 0.08% (0.27)%
Global Technology Portfolio ------------------------------------------------------- Class 1 Class 2 --------------------------------------------------- ------- Year Ended December 31, 5/1/96** 5/1/00* ---------------------------------------- to to 2000 1999 1998 1997 12/31/96* 12/31/00 ------ ------ ------ ------ -------- -------- PER SHARE DATA: Net Asset Value, Beginning of Period............................. $ 27.42 $ 13.85 $10.59 $10.32 $10.00 $30.96 ------ ------ ------ ------ ------ ------ Income from Investment Operations: Net investment income (loss)..................................... (0.08) (0.09) (0.05) 0.01 -- (0.12) Net realized and unrealized gain (loss) on investments........... (6.39) 16.25 3.81 2.15 0.30 (10.01) Net realized and unrealized gain (loss) on foreign currency transactions................................................... (0.01) (0.04) 0.11 (0.19) 0.10 0.11 ------ ------ ------ ------ ------ ------ Total from Investment Operations................................. (6.48) 16.12 3.87 1.97 0.40 (10.02) ------ ------ ------ ------ ------ ------ Less Distributions: Dividends from net investment income............................. -- -- -- (0.01) -- -- Distributions from net realized capital gain..................... (0.80) (2.55) (0.61) (1.69) (0.08) (0.80) ------ ------ ------ ------ ------ ------ Total Distributions:............................................. (0.80) (2.55) (0.61) (1.70) (0.08) (0.80) ------ ------ ------ ------ ------ ------ Net Asset Value, End of Period................................... $ 20.14 $ 27.42 $13.85 $10.59 $10.32 $20.14 ====== ====== ====== ====== ====== ====== TOTAL RETURN: (23.75)% 118.80% 36.80% 19.53% 4.01% (25.99)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted)......................... $25,370 $22,087 $6,130 $3,686 $1,364 $3,400 Ratio of expenses to average net assets.......................... 1.30% 1.40% 1.40% 1.40% 1.40%+ 1.55%+ Ratio of net income (loss) to average net assets................. (0.46)% (0.51)% (0.43)% 0.12% 0.60%+ (0.84)%+ Portfolio turnover rate.......................................... 142.42% 116.88% 82.27% 167.36% 45.04% 142.42%@ Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.......................... 1.41% 1.80% 2.10% 4.71%+ Ratio of net income (loss) to average net assets................. (0.52)% (0.83)% (0.58)% (2.71)%+
- ------------- *Commencement of offering of shares. **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. @For the year ended December 31, 2000. See Notes to Financial Statements. -- P-70 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
High-Yield Bond Portfolio --------------------------------------------------- Year Ended December 31, --------------------------------------------------- PER SHARE DATA: 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ Net Asset Value, Beginning of Year............................... $ 9.59 $ 10.87 $ 11.87 $ 11.19 $ 10.50 ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income............................................ 1.03 1.19 1.11 0.91 0.77 Net realized and unrealized gain (loss) on investments........... (1.89) (1.27) (0.99) 0.78 0.77 ------- ------- ------- ------- ------- Total from Investment Operations................................. (0.86) (0.08) 0.12 1.69 1.54 ------- ------- ------- ------- ------- Less Distributions: Dividends from net investment income............................. * (1.20) (1.11) (0.90) (0.77) Distributions from net realized capital gain..................... -- -- (0.01) (0.11) (0.08) ------- ------- ------- ------- ------- Total Distributions:............................................. -- (1.20) (1.12) (1.01) (0.85) ------- ------- ------- ------- ------- Net Asset Value, End of Year..................................... $ 8.73 $ 9.59 $ 10.87 $ 11.87 $ 11.19 ======= ======= ======= ======= ======= TOTAL RETURN: (8.93)% (0.75)% 1.02% 15.09% 14.62% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................... $15,080 $26,892 $32,253 $23,268 $11,176 Ratio of expenses to average net assets.......................... 0.70% 0.70% 0.70% 0.70% 0.70% Ratio of net income (loss) to average net assets................. 11.02% 10.33% 9.60% 9.61% 9.77% Portfolio turnover rate.......................................... 29.57% 57.05% 43.13% 74.54% 117.01% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.......................... 0.78% 0.77% 0.74% 0.79% 0.88% Ratio of net income to average net assets........................ 10.94% 10.26% 9.56% 9.52% 9.59%
Income Portfolio --------------------------------------------------- Year Ended December 31, --------------------------------------------------- PER SHARE DATA: 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ Net Asset Value, Beginning of Year............................... $ 9.91 $11.01 $ 10.80 $ 10.52 $ 10.56 ------ ------ ------- ------- ------- Income from Investment Operations: Net investment income (loss)..................................... 0.32 0.53 0.45 0.56 0.58 Net realized and unrealized gain (loss) on investments........... (0.54) (0.23) 0.38 0.91 0.13 ------ ------ ------- ------- ------- Total from Investment Operations................................. (0.22) 0.30 0.83 1.47 0.71 ------ ------ ------- ------- ------- Less Distributions: Dividends from net investment income............................. (0.01) (0.52) (0.46) (0.55) (0.58) Distributions from net realized capital gain..................... (0.03) (0.88) (0.16) (0.64) (0.17) ------ ------ ------- ------- ------- Total Distributions:............................................. (0.04) (1.40) (0.62) (1.19) (0.75) ------ ------ ------- ------- ------- Net Asset Value, End of Year..................................... $ 9.65 $ 9.91 $ 11.01 $ 10.80 $ 10.52 ====== ====== ======= ======= ======= TOTAL RETURN: (2.20)% 2.87% 7.76% 14.02% 6.66% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................... $5,640 $8,595 $14,582 $13,835 $13,717 Ratio of expenses to average net assets.......................... 0.60% 0.60% 0.60% 0.60% 0.59% Ratio of net income to average net assets........................ 3.07% 3.62% 3.94% 4.71% 5.37% Portfolio turnover rate.......................................... 61.14% 75.08% 70.45% 96.99% 19.59% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.......................... 0.83% 0.72% 0.61% 0.63% Ratio of net income to average net assets........................ 2.84% 3.50% 3.93% 4.68%
- ------------- *During 2000, a dividend of $0.004 per share was paid. ++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) - --------------------------------------------------------------------------------
International Growth Portfolio --------------------------------------------------- Year Ended December 31, --------------------------------------------------- PER SHARE DATA: 2000 1999 1998 1997 1996 ------ ------ ------ ------ ------ Net Asset Value, Beginning of Year............................... $16.63 $ 15.37 $13.54 $12.96 $12.39 ------ ------- ------ ------ ------ Income from Investment Operations: Net investment income ........................................... 0.06 0.05 0.08 0.03 0.07 Net realized and unrealized gain (loss) on investments........... (4.59) 4.59 1.90 2.11 1.13 Net realized and unrealized gain (loss) on foreign currency transactions................................................... (0.88) (0.73) 0.16 (1.06) (0.32) ------ ------- ------ ------ ------ Total from Investment Operations................................. (5.41) 3.91 2.14 1.08 0.88 ------ ------- ------ ------ ------ Less Distributions: Dividends from net investment income............................. (0.14) -- (0.15) (0.03) (0.07) Distributions from net realized capital gain..................... (0.43) (2.65) (0.16) (0.47) (0.24) ------ ------- ------ ------ ------ Total Distributions:............................................. (0.57) (2.65) (0.31) (0.50) (0.31) ------ ------- ------ ------ ------ Net Asset Value, End of Year..................................... $10.65 $ 16.63 $15.37 $13.54 $12.96 ====== ======= ====== ====== ====== TOTAL RETURN: (32.47)% 26.64% 15.81% 8.35% 7.08% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000s omitted)........................... $7,150 $10,248 $9,893 $9,182 $7,242 Ratio of expenses to average net assets.......................... 1.40% 1.39% 1.40% 1.40% 1.40% Ratio of net income (loss) to average net assets................. (0.57)% 0.33% 0.52% 0.43% 0.70% Portfolio turnover rate.......................................... 275.32% 79.17% 75.81% 89.43% 48.53% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets.......................... 2.03% 1.66% 1.78% 2.07% 2.30% Ratio of net income (loss) to average net assets................. (1.20)% 0.06% 0.14% (0.24)% (0.20)%
Large-Cap Growth Large-Cap Small-Cap Portfolio Value Portfolio Value Portfolio -------------- ----------------------- ----------------------- Year Ended Year Ended Year 5/1/99** December 31, 5/1/98** December 31, 5/1/98** Ended to ------------- to --------------- to PER SHARE DATA: 12/31/00 12/31/99 2000 1999 12/31/98 2000 1999 12/31/98 -------- -------- ------ ------ -------- ------ ------ -------- Net Asset Value, Beginning of Period........ $12.16 $10.00 $ 9.28 $ 9.66 $10.00 $ 8.08 $ 7.31 $10.00 ------ ------ ------ ------ ------ ------- ------ ------ Income from Investment Operations: Net investment income (loss)................ 0.01 -- 0.14 0.10 0.04 (0.01) (0.03) (0.02) Net realized and unrealized gain (loss) on investments.............................. (1.96) 2.16 2.25 (0.37) (0.07) 2.66 2.49 (1.73) ------ ------ ------ ------ ------ ------- ------ ------ Total from Investment Operations............ (1.95) 2.16 2.39 (0.27) (0.03) 2.65 2.46 (1.75) ------ ------ ------ ------ ------ ------- ------ ------ Less Distributions: Dividends from net investment income........ -- -- * (0.11) (0.04) -- -- -- Distributions from net realized capital gain -- -- (0.08) -- (0.27) (0.15) (1.69) (0.94) ------ ------ ------ ------ ------ ------- ------ ------ Total Distributions:........................ -- -- (0.08) (0.11) (0.31) (0.15) (1.69) (0.94) ------ ------ ------ ------ ------ ------- ------ ------ Net Asset Value, End of Period.............. $10.21 $12.16 $11.59 $ 9.28 $ 9.66 $ 10.58 $ 8.08 $ 7.31 ====== ====== ====== ====== ====== ======= ====== ====== TOTAL RETURN: (16.04)% 21.60% 25.84% (2.76)% (0.26)% 33.00% 35.26% (17.00)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000s omitted).... $5,255 $3,668 $6,057 $5,758 $3,845 $16,495 $4,403 $2,469 Ratio of expenses to average net assets..... 0.70% 0.70%+ 0.80% 0.80% 0.80%+ 1.00% 1.00% 1.00%+ Ratio of net income (loss) to average net assets............................... 0.08% (0.03)%+ 1.51% 1.18% 1.11%+ (0.22)% (0.27)% (0.34)%+ Portfolio turnover rate..................... 179.44% 56.69% 42.29% 28.01% 65.82% 42.27% 90.51% 73.87% Without management fee waiver and expense reimbursement:++ Ratio of expenses to average net assets..... 1.18% 1.52%+ 1.22% 1.13% 2.24%+ 1.45% 1.41% 3.08%+ Ratio of net income (loss) to average net assets............................... (0.40)% (0.85)%+ 1.09% 0.85% (0.33)%+ (0.67)% (0.68)% (2.43)%+
- --------------- *During 2000, a dividend of $0.002 per share was paid. **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-72 -- 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, 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, and collectively referred to as the "Fund") as of December 31, 2000, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2000, 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, 2000, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP New York, New York February 9, 2001 -- P-73 -- Seligman Portfolios, Inc. - -------------------------------------------------------------------------------- Board of Directors - -------------------------------------------------------------------------------- John R. Galvin 2, 4 Director, Raytheon Company Dean Emeritus, Fletcher School of Law and Diplomacy at Tufts University 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 Director, Commonwealth Industries, Inc. Trustee, New York-Presbyterian Hospital Retired Chairman and Senior Partner, Sullivan & Cromwell, Law Firm 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 Leroy C. Richie 4 Chairman and CEO, Q Standards Worldwide,Inc. James Q. Riordan 3, 4 Director, KeySpan Energy Corporation Trustee, Committee for Economic Development 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. Vice Chairman, ICI Mutual Insurance Company Member of the Board of Governors, Investment Company Institute Fred E. Brown Director Emeritus - ----------------- 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 Daniel J. Barker Vice President Daniel J. Charleston Vice President Iain C. Clark Vice President Mark J. Cunneen Vice President Neil T. Eigen Vice President Thomas G. Rose Vice President Marion S. Schultheis Vice President Charles C. Smith, Jr. Vice President Lawrence P. Vogel Vice President and Treasurer Steven A. Werber, Jr. Vice President Paul H. Wick Vice President Gary S. Zeltzer Vice President Frank J. Nasta Secretary - -------------------------------------------------------------------------------- Manager J. & W. Seligman & Co. Incorporated 100 Park Avenue New York, New York 10017 Subadviser (to Seligman Global Smaller Companies Portfolio) 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 -- P-74 -- -----END PRIVACY-ENHANCED MESSAGE-----