UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-04250
Seligman Municipal Series Trust
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 671-1947
Date of fiscal year end: September 30
Date of reporting period: March 31, 2011
Item 1. Reports to Stockholders.
Semiannual Report
Semiannual Report
Seligman National Municipal Fund
Seligman California Municipal High-Yield Fund
Seligman California Municipal Quality Fund
Seligman Minnesota Municipal Fund
Seligman New York Municipal Fund
Semiannual Report for the Period Ended March 31, 2011
| | |
| > | Each Fund seeks to provide shareholders with income exempt from regular income tax. |
Not FDIC insured - No bank guarantee - May lose value
| | | | |
Your Fund at a Glance | | | 2 | |
Seligman National Municipal Fund | | | 2 | |
Seligman California Municipal High-Yield Fund | | | 4 | |
Seligman California Municipal Quality Fund | | | 6 | |
Seligman Minnesota Municipal Fund | | | 8 | |
Seligman New York Municipal Fund | | | 10 | |
Fund Expenses Example | | | 12 | |
Portfolios of Investments | | | 15 | |
Statements of Assets and Liabilities | | | 46 | |
Statements of Operations | | | 48 | |
Statements of Changes in Net Assets | | | 50 | |
Financial Highlights | | | 53 | |
Notes to Financial Statements | | | 59 | |
Proxy Voting | | | 70 | |
Results of Meeting of Shareholders | | | 70 | |
In August 2010, the Board of Directors/Trustees of Seligman National Municipal Fund, Seligman California Municipal High-Yield Fund, Seligman California Municipal Quality Fund, Seligman Minnesota Municipal Fund and Seligman New York Municipal Fund (each, a “Fund” and collectively, the “Funds”) approved a proposal to merge the Fund with and into the corresponding acquiring fund listed in the table below (each, an “Acquiring Fund”).
| | |
Fund | | Acquiring Fund |
Seligman National Municipal Fund | | Columbia Tax-Exempt Fund |
| | |
Seligman California Municipal High-Yield Fund | | Columbia California Tax-Exempt Fund |
| | |
Seligman California Municipal Quality Fund | | Columbia California Tax-Exempt Fund |
| | |
Seligman Minnesota Municipal Fund | | Columbia Minnesota Tax-Exempt Fund |
| | |
Seligman New York Municipal Fund | | Columbia New York Tax-Exempt Fund |
| | |
Each proposal was approved at a meeting of shareholders held on Feb. 15, 2011. The merger of Seligman Minnesota Municipal Fund occurred after the close of business on April 8, 2011. The other four merger transactions are expected to occur on or about June 3, 2011. For more information, see “Results of Meeting of Shareholders.”
See the Fund’s prospectus for risks associated with investing in the Fund.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 1
(Unaudited)
Seligman National Municipal Fund
FUND SUMMARY
| |
> | Seligman National Municipal Fund (the Fund) Class A shares (excluding sales charge) decreased 5.46% for the six months ended March 31, 2011. |
|
> | The Fund underperformed its benchmark, the Barclays Capital Municipal Bond Index, which fell 3.68% during the same six-month period. |
|
> | The Fund also underperformed its peer group, as measured by the Lipper General Municipal Debt Funds Index, which declined 5.23% for the same time frame. |
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | |
| | 6 months* | | | 1 year | | | 3 years | | | 5 years | | | 10 years | |
Seligman National Municipal Fund Class A (excluding sales charge) | | | -5.46% | | | | +0.04% | | | | +3.74% | | | | +3.45% | | | | +3.78% | |
| | | | | | | | | | | | | | | | | | | | |
Barclays Capital Municipal Bond Index(1) (unmanaged) | | | -3.68% | | | | +1.63% | | | | +4.47% | | | | +4.14% | | | | +4.66% | |
| | | | | | | | | | | | | | | | | | | | |
Lipper General Municipal Debt Funds Index(2) (unmanaged) | | | -5.23% | | | | +0.12% | | | | +3.42% | | | | +2.95% | | | | +3.89% | |
| | | | | | | | | | | | | | | | | | | | |
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiamanagement.com or calling 800.345.6611.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of Class C may vary from that shown because of differences in fees and expenses. The Fund’s returns reflect the effect of fee waivers/expense reimbursements, if any. Without such waivers/reimbursements, the Fund’s returns would be lower. See the Average Annual Total Returns table for performance of Class C shares of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index.
| | |
(1) | | The Barclays Capital Municipal Bond Index, an unmanaged index, is made up of a representative list of general obligation, revenue, insured and pre-refunded bonds. The index is frequently used as a general measure of tax-exempt bond market performance. The index reflects reinvestment of all distributions and changes in market prices. |
|
(2) | | The Lipper General Municipal Debt Funds Index includes the 30 largest municipal debt funds tracked by Lipper Inc. The index’s returns include net reinvested dividends. |
2 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | | | | | |
at March 31, 2011 |
Without sales charge | | 6 months* | | 1 year | | 3 years | | 5 years | | 10 years |
Class A (inception 12/31/83) | | | -5.46 | % | | | +0.04 | % | | | +3.74 | % | | | +3.45 | % | | | +3.78 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -5.77 | % | | | -0.56 | % | | | +3.09 | % | | | +2.69 | % | | | +2.93 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
With sales charge | | | | | | | | | | | | | | | | | | | | |
Class A (inception 12/31/83) | | | -9.94 | % | | | -4.75 | % | | | +2.08 | % | | | +2.45 | % | | | +3.27 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -6.69 | % | | | -1.51 | % | | | +3.09 | % | | | +2.69 | % | | | +2.93 | % |
| | | | | | | | | | | | | | | | | | | | |
The “Without sales charge” returns for Class A and Class C shares do not include applicable initial or contingent deferred sales charges. If included, returns would be lower than those shown. The “With sales charge” returns for Class A and Class C shares include: the maximum initial sales charge of 4.75% for Class A shares; and a 1% contingent deferred sales charge (CDSC) for Class C shares sold within one year after purchase.
QUALITY BREAKDOWN(1) (at March 31, 2011)
| | | | |
AAA rating | | | 11.6 | % |
| | | | |
AA rating | | | 30.2 | |
| | | | |
A rating | | | 37.3 | |
| | | | |
BBB rating | | | 18.7 | |
| | | | |
Non-investment grade | | | 0.4 | |
| | | | |
Non-rated | | | 1.8 | |
| | | | |
| | |
(1) | | Percentages indicated are based upon total fixed income securities (excluding Cash & Cash Equivalents). |
Ratings apply to the underlying holdings of the Fund and not the Fund itself. Whenever possible, the Standard and Poor’s rating is used to determine the credit quality of a security. Standard and Poor’s rates the creditworthiness of municipal bonds, with 15 categories, ranging from AAA (highest) to D (lowest). Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. If Standard and Poor’s doesn’t rate a security, then Moody’s rating is used. Columbia Management Investment Advisers, LLC (the Investment Manager) rates a security using an internal rating system when Moody’s doesn’t provide a rating. Ratings for 2.1% of the bond portfolio assets were determined through internal analysis.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 3
(Unaudited)
Seligman California Municipal High-Yield Fund
FUND SUMMARY
| |
> | Seligman California Municipal High-Yield Fund (the Fund) Class A shares (excluding sales charge) decreased 7.58% for the six months ended March 31, 2011. |
|
> | The Fund underperformed its benchmark, the Barclays Capital Municipal Bond Index, which fell 3.68% during the same six-month period. |
|
> | The Fund also underperformed its peer group, the Lipper California Municipal Debt Funds Index, which declined 6.25% for the same time frame. |
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | |
| | 6 months* | | | 1 year | | | 3 years | | | 5 years | | | 10 years | |
Seligman California Municipal High-Yield Fund Class A (excluding sales charge) | | | -7.58% | | | | -1.88% | | | | +2.46% | | | | +2.85% | | | | +3.85% | |
| | | | | | | | | | | | | | | | | | | | |
Barclays Capital Municipal Bond Index(1) (unmanaged) | | | -3.68% | | | | +1.63% | | | | +4.47% | | | | +4.14% | | | | +4.66% | |
| | | | | | | | | | | | | | | | | | | | |
Lipper California Municipal Debt Funds Index(2) (unmanaged) | | | -6.25% | | | | -0.29% | | | | +2.76% | | | | +2.36% | | | | +3.58% | |
| | | | | | | | | | | | | | | | | | | | |
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiamanagement.com or calling 800.345.6611.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of Class C may vary from that shown because of differences in fees and expenses. The Fund’s returns reflect the effect of fee waivers/expense reimbursements, if any. Without such waivers/reimbursements, the Fund’s returns would be lower. See the Average Annual Total Returns table for performance of Class C shares of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index.
| | |
(1) | | The Barclays Capital Municipal Bond Index, an unmanaged index, is made up of a representative list of general obligation, revenue, insured and pre-refunded bonds. The index is frequently used as a general measure of tax-exempt bond market performance. The index reflects reinvestment of all distributions and changes in market prices. |
|
(2) | | The Lipper California Municipal Debt Funds Index includes the 30 largest California municipal debt funds tracked by Lipper Inc. The index’s returns include net reinvested dividends. |
4 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal High-Yield Fund
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | | | | | |
at March 31, 2011 |
Without sales charge | | 6 months* | | 1 year | | 3 years | | 5 years | | 10 years |
Class A (inception 11/20/84) | | | -7.58 | % | | | -1.88 | % | | | +2.46 | % | | | +2.85 | % | | | +3.85 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -7.91 | % | | | -2.60 | % | | | +1.64 | % | | | +1.98 | % | | | +2.95 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
With sales charge | | | | | | | | | | | | | | | | | | | | |
Class A (inception 11/20/84) | | | -11.95 | % | | | -6.55 | % | | | +0.82 | % | | | +1.84 | % | | | +3.35 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -8.81 | % | | | -3.53 | % | | | +1.64 | % | | | +1.98 | % | | | +2.95 | % |
| | | | | | | | | | | | | | | | | | | | |
The “Without sales charge” returns for Class A and Class C shares do not include applicable initial or contingent deferred sales charges. If included, returns would be lower than those shown. The “With sales charge” returns for Class A and Class C shares include: the maximum initial sales charge of 4.75% for Class A shares; and a 1% contingent deferred sales charge (CDSC) for Class C shares sold within one year after purchase.
QUALITY BREAKDOWN(1) (at March 31, 2011)
| | | | |
AA rating | | | 13.5 | % |
| | | | |
A rating | | | 71.1 | |
| | | | |
BBB rating | | | 14.6 | |
| | | | |
Non-investment grade | | | 0.8 | |
| | | | |
| | |
(1) | | Percentages indicated are based upon total fixed income securities (excluding Cash & Cash Equivalents). |
Ratings apply to the underlying holdings of the Fund and not the Fund itself. Whenever possible, the Standard and Poor’s rating is used to determine the credit quality of a security. Standard and Poor’s rates the creditworthiness of municipal bonds, with 15 categories, ranging from AAA (highest) to D (lowest). Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. If Standard and Poor’s doesn’t rate a security, then Moody’s rating is used. Columbia Management Investment Advisers, LLC (the Investment Manager) rates a security using an internal rating system when Moody’s doesn’t provide a rating.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 5
(Unaudited)
Seligman California Municipal Quality Fund
FUND SUMMARY
| |
> | Seligman California Municipal Quality Fund (the Fund) Class A shares (excluding sales charge) decreased 6.72% for the six months ended March 31, 2011. |
|
> | The Fund underperformed its benchmark, the Barclays Capital Municipal Bond Index, which fell 3.68% during the same six-month period. |
|
> | The Fund also underperformed its peer group, the Lipper California Municipal Debt Funds Index, which declined 6.25% for the same time frame. |
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | |
| | 6 months* | | | 1 year | | | 3 years | | | 5 years | | | 10 years | |
Seligman California Municipal Quality Fund Class A (excluding sales charge) | | | -6.72% | | | | -1.92% | | | | +2.42% | | | | +2.53% | | | | +3.42% | |
| | | | | | | | | | | | | | | | | | | | |
Barclays Capital Municipal Bond Index(1) (unmanaged) | | | -3.68% | | | | +1.63% | | | | +4.47% | | | | +4.14% | | | | +4.66% | |
| | | | | | | | | | | | | | | | | | | | |
Lipper California Municipal Debt Funds Index(2) (unmanaged) | | | -6.25% | | | | -0.29% | | | | +2.76% | | | | +2.36% | | | | +3.58% | |
| | | | | | | | | | | | | | | | | | | | |
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiamanagement.com or calling 800.345.6611.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of Class C may vary from that shown because of differences in fees and expenses. The Fund’s returns reflect the effect of fee waivers/expense reimbursements, if any. Without such waivers/reimbursements, the Fund’s returns would be lower. See the Average Annual Total Returns table for performance of Class C shares of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index.
| | |
(1) | | The Barclays Capital Municipal Bond Index, an unmanaged index, is made up of a representative list of general obligation, revenue, insured and pre-refunded bonds. The index is frequently used as a general measure of tax-exempt bond market performance. The index reflects reinvestment of all distributions and changes in market prices. |
(2) | | The Lipper California Municipal Debt Funds Index includes the 30 largest California municipal debt funds tracked by Lipper Inc. The index’s returns include net reinvested dividends. |
6 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal Quality Fund
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | | | | | |
at March 31, 2011 |
Without sales charge | | 6 months* | | 1 year | | 3 years | | 5 years | | 10 years |
Class A (inception 11/20/84) | | | -6.72 | % | | | -1.92 | % | | | +2.42 | % | | | +2.53 | % | | | +3.42 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -6.96 | % | | | -2.52 | % | | | +1.60 | % | | | +1.70 | % | | | +2.53 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
With sales charge | | | | | | | | | | | | | | | | | | | | |
Class A (inception 11/20/84) | | | -11.15 | % | | | -6.57 | % | | | +0.78 | % | | | +1.54 | % | | | +2.91 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -7.87 | % | | | -3.45 | % | | | +1.60 | % | | | +1.70 | % | | | +2.53 | % |
| | | | | | | | | | | | | | | | | | | | |
The “Without sales charge” returns for Class A and Class C shares do not include applicable initial or contingent deferred sales charges. If included, returns would be lower than those shown. The “With sales charge” returns for Class A and Class C shares include: the maximum initial sales charge of 4.75% for Class A shares; and a 1% contingent deferred sales charge (CDSC) for Class C shares sold within one year after purchase.
QUALITY BREAKDOWN(1) (at March 31, 2011)
| | | | |
AA rating | | | 49.3 | % |
| | | | |
A rating | | | 50.7 | |
| | | | |
| | |
(1) | | Percentages indicated are based upon total fixed income securities (excluding Cash & Cash Equivalents). |
Ratings apply to the underlying holdings of the Fund and not the Fund itself. Whenever possible, the Standard and Poor’s rating is used to determine the credit quality of a security. Standard and Poor’s rates the creditworthiness of municipal bonds, with 15 categories, ranging from AAA (highest) to D (lowest). Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. If Standard and Poor’s doesn’t rate a security, then Moody’s rating is used. Columbia Management Investment Advisers, LLC (the Investment Manager) rates a security using an internal rating system when Moody’s doesn’t provide a rating.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 7
(Unaudited)
Seligman Minnesota Municipal Fund
FUND SUMMARY
| |
> | Seligman Minnesota Municipal Fund (the Fund) Class A shares (excluding sales charge) decreased 3.77% for the six months ended March 31, 2011. |
|
> | The Fund underperformed its benchmark, the Barclays Capital Municipal Bond Index, which fell 3.68% during the same six-month period. |
|
> | The Fund slightly underperformed its peer group, as measured by the Lipper Minnesota Municipal Debt Funds Index, which declined 3.73% for the same time frame. |
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | |
| | 6 months* | | | 1 year | | | 3 years | | | 5 years | | | 10 years | |
Seligman Minnesota Municipal Fund Class A (excluding sales charge) | | | -3.77% | | | | +1.15% | | | | +3.64% | | | | +3.46% | | | | +3.72% | |
| | | | | | | | | | | | | | | | | | | | |
Barclays Capital Municipal Bond Index(1) (unmanaged) | | | -3.68% | | | | +1.63% | | | | +4.47% | | | | +4.14% | | | | +4.66% | |
| | | | | | | | | | | | | | | | | | | | |
Lipper Minnesota Municipal Debt Funds Index(2) (unmanaged) | | | -3.73% | | | | +1.27% | | | | +4.00% | | | | +3.47% | | | | +4.09% | |
| | | | | | | | | | | | | | | | | | | | |
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiamanagement.com or calling 800.345.6611.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of Class C may vary from that shown because of differences in fees and expenses. The Fund’s returns reflect the effect of fee waivers/expense reimbursements, if any. Without such waivers/reimbursements, the Fund’s returns would be lower. See the Average Annual Total Returns table for performance of Class C shares of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index.
| | |
(1) | | The Barclays Capital Municipal Bond Index, an unmanaged index, is made up of a representative list of general obligation, revenue, insured and pre-refunded bonds. The index is frequently used as a general measure of tax-exempt bond market performance. The index reflects reinvestment of all distributions and changes in market prices. |
(2) | | The Lipper Minnesota Municipal Debt Funds Index includes the 10 largest Minnesota municipal debt funds tracked by Lipper Inc. The index’s returns include net reinvested dividends. |
8 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Minnesota Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | | | | | |
at March 31, 2011 |
Without sales charge | | 6 months* | | 1 year | | 3 years | | 5 years | | 10 years |
Class A (inception 12/30/83) | | | -3.77 | % | | | +1.15 | % | | | +3.64 | % | | | +3.46 | % | | | +3.72 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -4.11 | % | | | +0.53 | % | | | +2.85 | % | | | +2.60 | % | | | +2.83 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
With sales charge | | | | | | | | | | | | | | | | | | | | |
Class A (inception 12/30/83) | | | -8.35 | % | | | -3.69 | % | | | +1.98 | % | | | +2.46 | % | | | +3.22 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -5.05 | % | | | -0.43 | % | | | +2.85 | % | | | +2.60 | % | | | +2.83 | % |
| | | | | | | | | | | | | | | | | | | | |
The “Without sales charge” returns for Class A and Class C shares do not include applicable initial or contingent deferred sales charges. If included, returns would be lower than those shown. The “With sales charge” returns for Class A and Class C shares include: the maximum initial sales charge of 4.75% for Class A shares; and a 1% contingent deferred sales charge (CDSC) for Class C shares sold within one year after purchase.
QUALITY BREAKDOWN(1) (at March 31, 2011)
| | | | |
AAA rating | | | 31.6 | % |
| | | | |
AA rating | | | 15.2 | |
| | | | |
A rating | | | 39.4 | |
| | | | |
BBB rating | | | 13.4 | |
| | | | |
Non-rated | | | 0.4 | |
| | | | |
| | |
(1) | | Percentages indicated are based upon total fixed income securities (excluding Cash & Cash Equivalents). |
Ratings apply to the underlying holdings of the Fund and not the Fund itself. Whenever possible, the Standard and Poor’s rating is used to determine the credit quality of a security. Standard and Poor’s rates the creditworthiness of municipal bonds, with 15 categories, ranging from AAA (highest) to D (lowest). Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. If Standard and Poor’s doesn’t rate a security, then Moody’s rating is used. Columbia Management Investment Advisers, LLC (the Investment Manager) rates a security using an internal rating system when Moody’s doesn’t provide a rating. Ratings for 0.5% of the bond portfolio assets were determined through internal analysis.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 9
(Unaudited)
Seligman New York Municipal Fund
FUND SUMMARY
| |
> | Seligman New York Municipal Fund (the Fund) Class A shares (excluding sales charge) decreased 4.89% for the six months ended March 31, 2011. |
|
> | The Fund underperformed its benchmark, the Barclays Capital Municipal Bond Index, which fell 3.68% during the same six-month period. |
|
> | The Fund outperformed its peer group, as measured by the Lipper New York Municipal Debt Funds Index, which declined 5.66% for the same time frame. |
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | |
| | 6 months* | | | 1 year | | | 3 years | | | 5 years | | | 10 years | |
Seligman New York Municipal Fund Class A (excluding sales charge) | | | -4.89% | | | | +0.01% | | | | +3.45% | | | | +3.37% | | | | +3.92% | |
| | | | | | | | | | | | | | | | | | | | |
Barclays Capital Municipal Bond Index(1) (unmanaged) | | | -3.68% | | | | +1.63% | | | | +4.47% | | | | +4.14% | | | | +4.66% | |
| | | | | | | | | | | | | | | | | | | | |
Lipper New York Municipal Debt Funds Index(2) (unmanaged) | | | -5.66% | | | | -0.41% | | | | +3.39% | | | | +2.98% | | | | +3.80% | |
| | | | | | | | | | | | | | | | | | | | |
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiamanagement.com or calling 800.345.6611.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of Class C may vary from that shown because of differences in fees and expenses. The Fund’s returns reflect the effect of fee waivers/expense reimbursements, if any. Without such waivers/reimbursements, the Fund’s returns would be lower. See the Average Annual Total Returns table for performance of Class C shares of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index.
| | |
(1) | | The Barclays Capital Municipal Bond Index, an unmanaged index, is made up of a representative list of general obligation, revenue, insured and pre-refunded bonds. The index is frequently used as a general measure of tax-exempt bond market performance. The index reflects reinvestment of all distributions and changes in market prices. |
(2) | | The Lipper New York Municipal Debt Funds Index includes the 30 largest New York municipal debt funds tracked by Lipper Inc. The index’s returns include net reinvested dividends. |
10 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman New York Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
| | | | | | | | | | | | | | | | | | | | |
at March 31, 2011 |
Without sales charge | | 6 months* | | 1 year | | 3 years | | 5 years | | 10 years |
Class A (inception 1/3/84) | | | -4.89 | % | | | +0.01 | % | | | +3.45 | % | | | +3.37 | % | | | +3.92 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -5.11 | % | | | -0.60 | % | | | +2.66 | % | | | +2.53 | % | | | +3.02 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
With sales charge | | | | | | | | | | | | | | | | | | | | |
Class A (inception 1/3/84) | | | -9.36 | % | | | -4.72 | % | | | +1.77 | % | | | +2.36 | % | | | +3.41 | % |
| | | | | | | | | | | | | | | | | | | | |
Class C (inception 5/27/99) | | | -6.04 | % | | | -1.55 | % | | | +2.66 | % | | | +2.53 | % | | | +3.02 | % |
| | | | | | | | | | | | | | | | | | | | |
The “Without sales charge” returns for Class A and Class C shares do not include applicable initial or contingent deferred sales charges. If included, returns would be lower than those shown. The “With sales charge” returns for Class A and Class C shares include: the maximum initial sales charge of 4.75% for Class A shares; and a 1% contingent deferred sales charge (CDSC) for Class C shares sold within one year after purchase.
QUALITY BREAKDOWN(1) (at March 31, 2011)
| | | | |
AAA rating | | | 18.8 | % |
| | | | |
AA rating | | | 44.7 | |
| | | | |
A rating | | | 27.5 | |
| | | | |
BBB rating | | | 8.5 | |
| | | | |
Non-rated | | | 0.5 | |
| | | | |
| | |
(1) | | Percentages indicated are based upon total fixed income securities (excluding Cash & Cash Equivalents). |
Ratings apply to the underlying holdings of the Fund and not the Fund itself. Whenever possible, the Standard and Poor’s rating is used to determine the credit quality of a security. Standard and Poor’s rates the creditworthiness of municipal bonds, with 15 categories, ranging from AAA (highest) to D (lowest). Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. If Standard and Poor’s doesn’t rate a security, then Moody’s rating is used. Columbia Management Investment Advisers, LLC (the Investment Manager) rates a security using an internal rating system when Moody’s doesn’t provide a rating.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 11
(Unaudited)
As a shareholder of the Fund, you incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments; and (ii) ongoing costs, which may include management fees; distribution and service (Rule 12b-1) fees; and other Fund fees and expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. In addition to the ongoing expenses which the Fund bears directly, the Fund’s shareholders indirectly bear the expenses of the funds in which it invests (also referred to as “acquired funds”), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). The Fund’s indirect expense from investing in the acquired funds is based on the Fund’s pro rata portion of the cumulative expenses charged by the acquired funds using the expense ratio of each of the acquired funds as of the acquired fund’s most recent shareholder report.
These examples are based on an investment of $1,000 invested at the beginning of the period indicated and held until March 31, 2011.
Actual Expenses
The first line of each table provides information about actual account values and actual expenses for each class. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during the period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each table provides information about hypothetical account values and hypothetical expenses based on each actual expense ratio for each class and an assumed rate of return of 5% per year before expenses, which is not the actual return for the class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare each 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in each table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Seligman National Municipal Fund
| | | | | | | | | | | | | | | | |
| | Beginning
| | | Ending
| | | Expenses
| | | | |
| | account value
| | | account value
| | | paid during
| | | Annualized
| |
| | Oct. 1, 2010 | | | March 31, 2011 | | | the period(a) | | | expense ratio | |
Class A | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 945.40 | | | $ | 3.93 | | | | .81% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,020.89 | | | $ | 4.08 | | | | .81% | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 942.30 | | | $ | 7.55 | | | | 1.56% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,017.15 | | | $ | 7.85 | | | | 1.56% | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
(b) | | Based on the actual return for the six months ended March 31, 2011: -5.46% for Class A and -5.77% for Class C. |
12 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal High-Yield Fund
| | | | | | | | | | | | | | | | |
| | Beginning
| | | Ending
| | | Expenses
| | | | |
| | account value
| | | account value
| | | paid during
| | | Annualized
| |
| | Oct. 1, 2010 | | | March 31, 2011 | | | the period(a) | | | expense ratio | |
Class A | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 924.20 | | | $ | 3.79 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,020.99 | | | $ | 3.98 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 920.90 | | | $ | 7.38 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,017.25 | | | $ | 7.75 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
(b) | | Based on the actual return for the six months ended March 31, 2011: -7.58% for Class A and -7.91% for Class C. |
Seligman California Municipal Quality Fund
| | | | | | | | | | | | | | | | |
| | Beginning
| | | Ending
| | | Expenses
| | | | |
| | account value
| | | account value
| | | paid during
| | | Annualized
| |
| | Oct. 1, 2010 | | | March 31, 2011 | | | the period(a) | | | expense ratio | |
Class A | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 932.80 | | | $ | 3.81 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,020.99 | | | $ | 3.98 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 930.40 | | | $ | 7.41 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,017.25 | | | $ | 7.75 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
(b) | | Based on the actual return for the six months ended March 31, 2011: -6.72% for Class A and -6.96% for Class C. |
Seligman Minnesota Municipal Fund
| | | | | | | | | | | | | | | | |
| | Beginning
| | | Ending
| | | Expenses
| | | | |
| | account value
| | | account value
| | | paid during
| | | Annualized
| |
| | Oct. 1, 2010 | | | March 31, 2011 | | | the period(a) | | | expense ratio | |
Class A | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 962.30 | | | $ | 3.86 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,020.99 | | | $ | 3.98 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 958.90 | | | $ | 7.52 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,017.25 | | | $ | 7.75 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
(b) | | Based on the actual return for the six months ended March 31, 2011: -3.77% for Class A and -4.11% for Class C. |
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 13
Fund Expenses Examples (continued)
Seligman New York Municipal Fund
| | | | | | | | | | | | | | | | |
| | Beginning
| | | Ending
| | | Expenses
| | | | |
| | account value
| | | account value
| | | paid during
| | | Annualized
| |
| | Oct. 1, 2010 | | | March 31, 2011 | | | the period(a) | | | expense ratio | |
Class A | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 951.10 | | | $ | 3.84 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,020.99 | | | $ | 3.98 | | | | .79% | |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Actual(b) | | $ | 1,000 | | | $ | 948.90 | | | $ | 7.48 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
Hypothetical (5% return before expenses) | | $ | 1,000 | | | $ | 1,017.25 | | | $ | 7.75 | | | | 1.54% | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
(b) | | Based on the actual return for the six months ended March 31, 2011: -4.89% for Class A and -5.11% for Class C. |
14 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal FundMarch 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
| | | | | | | | | | |
Municipal Bonds (95.2 %) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
|
Alabama (0.2%) |
Selma Industrial Development Board Revenue Bonds Gulf Opportunity Zone-International Paper Series 2010 |
05-01-34 | | | 5.800 | % | | | $1,100,000 | | | $1,080,717 |
|
|
Alaska (1.4%) |
Alaska Energy Authority Refunding Revenue Bonds Bradley Lake 4th Series 2000 (AGM) |
07-01-20 | | | 6.000 | | | | 4,145,000 | | | 4,669,384 |
07-01-21 | | | 6.000 | | | | 2,395,000 | | | 2,695,596 |
| | | | | | | | | | |
Total | | | | | | | | | | 7,364,980 |
|
|
Arizona (1.0%) |
Arizona Transportation Board Revenue Bonds Maricopa County Regional Area Road Fund Series 2007 |
07-01-25 | | | 5.000 | | | | 1,500,000 | | | 1,556,910 |
Arizona Water Infrastructure Finance Authority Revenue Bonds Water Quality Series 2008A |
10-01-22 | | | 5.000 | | | | 1,500,000 | | | 1,622,925 |
Maricopa County Pollution Control Corp. Refunding Revenue Bonds Southern California Education Co. Series 2000B-RMKT |
06-01-35 | | | 5.000 | | | | 2,175,000 | | | 2,063,792 |
| | | | | | | | | | |
Total | | | | | | | | | | 5,243,627 |
|
|
California (9.4%) |
Abag Finance Authority for Nonprofit Corporations Revenue Bonds Sharp Healthcare Series 2009 |
08-01-39 | | | 6.250 | | | | 4,000,000 | | | 3,931,800 |
California Statewide Communities Development Authority Revenue Bonds John Muir Health Series 2006A |
08-15-32 | | | 5.000 | | | | 1,000,000 | | | 878,190 |
County of Sacramento Revenue Bonds Senior Series 2009B |
07-01-39 | | | 5.750 | | | | 4,000,000 | | | 3,955,520 |
Foothill-Eastern Transportation Corridor Agency Refunding Revenue Bonds Series 1999 |
01-15-40 | | | 5.750 | | | | 4,100,000 | | | 3,392,217 |
San Francisco City & County Redevelopment Agency Tax Allocation Bonds Mission Bay South Redevelopment Series 2009D |
08-01-39 | | | 6.625 | | | | 500,000 | | | 473,675 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2005 |
03-01-32 | | | 5.000 | | | | 1,500,000 | | | 1,403,865 |
08-01-35 | | | 5.000 | | | | 8,000,000 | | | 7,218,559 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2007 |
12-01-32 | | | 5.000 | | | | 2,000,000 | | | 1,869,340 |
11-01-37 | | | 5.000 | | | | 3,000,000 | | | 2,676,570 |
12-01-37 | | | 5.000 | | | | 1,700,000 | | | 1,516,434 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2008 |
03-01-27 | | | 5.500 | | | | 1,000,000 | | | 1,022,440 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2009 |
04-01-38 | | | 6.000 | | | | 5,000,000 | | | 5,108,150 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2010 |
03-01-40 | | | 5.500 | | | | 6,000,000 | | | 5,781,300 |
State of California Unlimited General Obligation Refunding Bonds Series 2007 |
08-01-30 | | | 4.500 | | | | 5,550,000 | | | 4,781,214 |
University of California Revenue Bonds General Series 2009Q |
05-15-34 | | | 5.000 | | | | 5,750,000 | | | 5,513,904 |
Yosemite Community College District Unlimited General Obligation Bonds Capital Appreciation Election of 2004 Zero Coupon Series 2010D |
08-01-31 | | | 6.461 | | | | 5,000,000 | (f) | | 1,212,600 |
| | | | | | | | | | |
Total | | | | | | | | | | 50,735,778 |
|
|
Colorado (2.7%) |
City & County of Denver Unlimited General Obligation Bonds Justice System Facilities & Zoo Series 2005 |
08-01-25 | | | 5.000 | | | | 1,000,000 | | | 1,039,450 |
City of Westminster Revenue Bonds Post Project Series 2007D (AGM) |
12-01-23 | | | 5.000 | | | | 1,240,000 | | | 1,298,342 |
Colorado Health Facilities Authority Revenue Bonds Evangelical Lutheran Series 2009A |
06-01-38 | | | 6.125 | | | | 750,000 | | | 750,030 |
Colorado Health Facilities Authority Unrefunded Revenue Bonds Series 2000 |
12-01-25 | | | 6.900 | | | | 680,000 | | | 693,614 |
Colorado State Board of Governors Revenue Bonds Series 2008A (AGM) |
03-01-27 | | | 5.000 | | | | 1,250,000 | | | 1,268,188 |
Platte River Power Authority Revenue Bonds Series 2009HH |
06-01-24 | | | 5.000 | | | | 1,000,000 | | | 1,069,610 |
Regional Transportation District Refunding Revenue Bonds Series 2007A |
11-01-24 | | | 5.250 | | | | 1,000,000 | | | 1,126,850 |
University of Colorado Hospital Authority Refunding Revenue Bonds Series 1997A (AMBAC) |
11-15-22 | | | 5.250 | | | | 1,000,000 | | | 1,000,090 |
University of Colorado Hospital Authority Refunding Revenue Bonds Series 2009A |
11-15-29 | | | 6.000 | | | | 5,000,000 | | | 5,056,550 |
University of Colorado Revenue Bonds Series 2006A (AMBAC) |
06-01-23 | | | 5.000 | | | | 1,000,000 | | | 1,044,930 |
| | | | | | | | | | |
Total | | | | | | | | | | 14,347,654 |
|
|
District of Columbia (0.4%) |
District of Columbia Refunding Revenue Bonds 2nd Series 2009B |
12-01-23 | | | 5.000 | | | | 2,000,000 | | | 2,144,100 |
|
|
| | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 15
Portfolio of Investments (continued)
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
Florida (5.1%) |
City of Ocala Revenue Bonds Series 2007A (NPFGC) |
10-01-24 | | | 5.000 | % | | | $2,985,000 | | | $3,034,671 |
County of Broward Revenue Bonds Series 2001J-I (AMBAC) A.M.T. |
10-01-26 | | | 5.250 | | | | 2,000,000 | | | 1,878,800 |
County of Miami-Dade Revenue Bonds Miami International Airport Series 2010A |
10-01-35 | | | 5.375 | | | | 1,000,000 | | | 947,280 |
County of Polk Improvement Refunding Revenue Bonds Series 2006 (NPFGC) |
12-01-20 | | | 5.000 | | | | 1,040,000 | | | 1,064,180 |
County of St. Johns Revenue Bonds Series 2006 (AMBAC) |
10-01-26 | | | 5.000 | | | | 1,000,000 | | | 1,012,460 |
Florida Housing Finance Corp. Revenue Bonds Homeowner Mortgage Series 2000-11 (AGM) A.M.T. |
01-01-32 | | | 5.950 | | | | 300,000 | | | 300,000 |
Florida Ports Financing Commission Revenue Bonds State Transportation Trust Fund Series 1996 (NPFGC) A.M.T. |
06-01-27 | | | 5.375 | | | | 2,500,000 | | | 2,401,950 |
Florida State Board of Education Revenue Bonds Series 2007A (AMBAC) |
07-01-18 | | | 5.000 | | | | 2,000,000 | | | 2,201,560 |
Marion County Hospital District Improvement Refunding Revenue Bonds Health Systems — Munroe Regional Series 2007 |
10-01-29 | | | 5.000 | | | | 1,000,000 | | | 897,410 |
Orange County School Board Certificate of Participation Series 2005B (AMBAC) |
08-01-25 | | | 5.000 | | | | 2,440,000 | | | 2,440,780 |
Orlando-Orange County Expressway Authority Revenue Bonds Series 2010C |
07-01-40 | | | 5.000 | | | | 3,000,000 | | | 2,698,590 |
Reedy Creek Improvement District Unrefunded Revenue Bonds Series 1997-1 (AMBAC) |
10-01-19 | | | 5.125 | | | | 230,000 | | | 230,133 |
Sarasota County Public Hospital Board Refunding Revenue Bonds Sarasota Memorial Hospital Series 1998B (NPFGC) |
07-01-28 | | | 5.500 | | | | 6,980,000 | | | 6,910,409 |
South Florida Water Management District Certificate of Participation Series 2006 (AMBAC) |
10-01-26 | | | 5.000 | | | | 1,400,000 | | | 1,405,334 |
| | | | | | | | | | |
Total | | | | | | | | | | 27,423,557 |
|
|
Georgia (5.0%) |
Barnesville-Lamar County Industrial Development Authority Revenue Bonds Gordon College Properties Series 2004A |
08-01-25 | | | 5.000 | | | | 1,250,000 | | | 1,233,563 |
Cartersville Development Authority Refunding Revenue Bonds Anheuser-Busch Project Series 2002 A.M.T. |
02-01-32 | | | 5.950 | | | | 1,250,000 | | | 1,252,838 |
City of Atlanta Revenue Bonds General Series 2000B (NPFGC/FGIC) A.M.T. |
01-01-30 | | | 5.625 | | | | 2,000,000 | | | 1,998,660 |
City of Atlanta Revenue Bonds Series 2004 (AGM) |
11-01-25 | | | 5.750 | | | | 1,000,000 | | | 1,085,610 |
DeKalb County Hospital Authority Revenue Bonds DeKalb Medical Center, Inc. Project Series 2010 |
09-01-40 | | | 6.125 | | | | 6,250,000 | | | 5,738,125 |
Fulton County Development Authority Revenue Bonds Georgia Tech Athletic Association Series 2001 (AMBAC) |
10-01-32 | | | 5.125 | | | | 1,270,000 | | | 1,145,959 |
Gainesville & Hall County Hospital Authority Revenue Bonds Northeast Georgia Healthcare Series 2010A |
02-15-45 | | | 5.500 | | | | 7,500,000 | | | 6,858,075 |
Georgia Housing & Finance Authority Revenue Bonds Single Family Mortgage Subordinated Series 1999A-2 A.M.T. |
06-01-29 | | | 5.200 | | | | 1,615,000 | | | 1,559,654 |
Georgia State Road & Tollway Authority Refunding Revenue Bonds Series 2011B |
10-01-16 | | | 5.000 | | | | 2,000,000 | | | 2,316,680 |
Gwinnett County Hospital Authority Revenue Bonds Gwinnett Hospital Systems, Inc. Project Series 2004B |
10-01-29 | | | 5.000 | | | | 1,250,000 | | | 1,251,188 |
Metropolitan Atlanta Rapid Transit Authority Refunding Revenue Bonds Series 1992N |
07-01-18 | | | 6.250 | | | | 500,000 | | | 572,060 |
Metropolitan Atlanta Rapid Transit Authority Refunding Revenue Bonds Series 2007A (NPFGC/FGIC) |
07-01-26 | | | 5.250 | | | | 1,000,000 | | | 1,098,320 |
Upper Oconee Basin Water Authority Refunding Revenue Bonds Series 2005 (NPFGC) |
07-01-24 | | | 5.000 | | | | 1,000,000 | | | 1,030,260 |
| | | | | | | | | | |
Total | | | | | | | | | | 27,140,992 |
|
|
Hawaii (0.3%) |
Hawai’i Pacific Health Revenue Bonds Series 2010A |
07-01-40 | | | 5.500 | | | | 1,425,000 | | | 1,239,365 |
Hawai’i Pacific Health Revenue Bonds Series 2010B |
07-01-30 | | | 5.625 | | | | 270,000 | | | 252,661 |
07-01-40 | | | 5.750 | | | | 360,000 | | | 324,817 |
| | | | | | | | | | |
Total | | | | | | | | | | 1,816,843 |
|
|
Idaho (0.2%) |
Idaho Health Facilities Authority Revenue Bonds Trinity Health Group Series 2008B |
12-01-23 | | | 6.000 | | | | 1,000,000 | | | 1,101,730 |
|
|
Illinois (4.7%) |
Illinois Finance Authority Refunding Revenue Bonds Swedish Covenant Series 2010A |
08-15-38 | | | 6.000 | | | | 3,925,000 | | | 3,675,135 |
Illinois Finance Authority Revenue Bonds Riverside Health System Series 2009 |
11-15-35 | | | 6.250 | | | | 4,200,000 | | | 4,230,198 |
Illinois Finance Authority Revenue Bonds Rush University Medical Center Series 2009C |
11-01-39 | | | 6.625 | | | | 750,000 | | | 764,730 |
Illinois Finance Authority Revenue Bonds Sherman Health System Series 2007A |
08-01-37 | | | 5.500 | | | | 7,770,000 | | | 6,400,226 |
The accompanying Notes to Financial Statements are an integral part of this statement.
16 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Illinois (cont.) |
Illinois Finance Authority Revenue Bonds Silver Cross & Medical Centers Series 2009 |
08-15-38 | | | 6.875 | % | | | $8,000,000 | | | $7,830,319 |
Metropolitan Pier & Exposition Authority Refunding Revenue Bonds McCormick Series 2010B-2 |
06-15-50 | | | 5.000 | | | | 875,000 | | | 712,364 |
State of Illinois Revenue Bonds Series 2005 (AGM) |
06-15-28 | | | 5.000 | | | | 2,000,000 | | | 1,959,180 |
| | | | | | | | | | |
Total | | | | | | | | | | 25,572,152 |
|
|
Indiana (0.9%) |
Indiana Finance Authority Revenue Bonds Parkview Health System Series 2009A |
05-01-31 | | | 5.750 | | | | 3,000,000 | | | 2,996,280 |
Indiana Health & Educational Facilities Financing Authority Refunding Revenue Bonds Clarian Health Obligation Group Series 2006B |
02-15-33 | | | 5.000 | | | | 1,000,000 | | | 860,500 |
Purdue University Revenue Bonds Student Fee Series 2009X |
07-01-23 | | | 5.250 | | | | 1,000,000 | | | 1,095,870 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,952,650 |
|
|
Kansas (0.5%) |
Wyandotte County-Kansas City Unified Government Revenue Bonds Capital Appreciation Sales Tax Subordinated Lien Zero Coupon Series 2010 |
06-01-21 | | | 6.096 | | | | 5,100,000 | (f) | | 2,743,851 |
|
|
Kentucky (2.0%) |
County of Ohio Refunding Revenue Bonds Big Rivers Electric Corp. Project Series 2010A |
07-15-31 | | | 6.000 | | | | 3,100,000 | | | 2,990,880 |
Kentucky Economic Development Finance Authority Revenue Bonds Kings Daughters Medical Series 2010 |
02-01-40 | | | 5.000 | | | | 3,650,000 | | | 3,243,098 |
Kentucky Economic Development Finance Authority Revenue Bonds Owensboro Medical Health System Series 2010A |
03-01-45 | | | 6.500 | | | | 4,575,000 | | | 4,307,637 |
| | | | | | | | | | |
Total | | | | | | | | | | 10,541,615 |
|
|
Louisiana (4.2%) |
Calcasieu Parish Industrial Development Board, Inc. Revenue Bonds Conoco, Inc. Project Series 1996 A.M.T. |
12-01-26 | | | 5.750 | | | | 2,500,000 | | | 2,500,250 |
City of New Orleans Unlimited General Obligation Public Improvement Bonds Series 2002 (FGIC) |
12-01-31 | | | 5.350 | | | | 2,250,000 | | | 2,141,798 |
City/Parish of East Baton Rouge Refunding Revenue Bonds Series 2008A-2 (AGM) |
08-01-24 | | | 5.000 | | | | 900,000 | | | 940,941 |
City/Parish of East Baton Rouge Revenue Bonds Road & Street Improvements Series 2009 |
08-01-25 | | | 5.000 | | | | 250,000 | | | 257,785 |
East Baton Rouge Mortgage Finance Authority Refunding Revenue Bonds Mortgage-Backed Series 1993B (GNMA/FNMA) |
10-01-25 | | | 5.400 | | | | 330,000 | | | 330,116 |
Jefferson Parish Hospital Service District No. 2 Revenue Bonds Series 1998 (AGM) |
07-01-28 | | | 5.000 | | | | 1,000,000 | | | 937,250 |
Jefferson Sales Tax District Refunding Revenue Bonds Series 2009B |
12-01-22 | | | 4.500 | | | | 1,000,000 | | | 1,015,300 |
Jefferson Sales Tax District Revenue Bonds Series 2007B (AMBAC) |
12-01-20 | | | 5.250 | | | | 1,000,000 | | | 1,070,100 |
Lafayette Consolidated Government Refunding Revenue Bonds Series 2006C (AMBAC) |
05-01-21 | | | 5.000 | | | | 1,000,000 | | | 1,056,390 |
Louisiana Housing Finance Agency Revenue Bonds Home Ownership Program Series 2008A (GNMA/FNMA/FHLMC) |
12-01-23 | | | 4.875 | | | | 825,000 | | | 849,329 |
Louisiana Public Facilities Authority Refunding Revenue Bonds Southern Baptist Hospital, Inc. Project Series 1986 Escrowed to Maturity |
05-15-12 | | | 8.000 | | | | 1,980,000 | | | 2,048,963 |
Louisiana Public Facilities Authority Refunding Revenue Bonds Tulane University Project Series 2007A-1 (NPFGC) |
02-15-26 | | | 5.000 | | | | 1,000,000 | | | 1,006,010 |
Louisiana Public Facilities Authority Revenue Bonds Hurricane Recovery Program Series 2007 (AMBAC) |
06-01-20 | | | 5.000 | | | | 1,000,000 | | | 1,022,060 |
Louisiana State Citizens Property Insurance Corp. Revenue Bonds Series 2009C-4-RMKT |
06-01-24 | | | 6.125 | | | | 1,000,000 | | | 1,043,620 |
New Orleans Aviation Board Revenue Bonds Consolidated Rental Car Series 2009A |
01-01-40 | | | 6.500 | | | | 4,650,000 | | | 4,548,816 |
Port New Orleans Board of Commissioners Revenue Bonds Series 2002 (NPFGC/FGIC) A.M.T. |
04-01-32 | | | 5.000 | | | | 1,250,000 | | | 1,055,125 |
St. Tammany Parish Wide School District No. 12 Unlimited General Obligation Bonds Series 2008 |
03-01-23 | | | 4.500 | | | | 1,000,000 | | | 1,016,310 |
| | | | | | | | | | |
Total | | | | | | | | | | 22,840,163 |
|
|
Maryland (0.5%) |
Maryland Health & Higher Educational Facilities Authority Revenue Bonds Carroll County General Hospital Series 2002 |
07-01-37 | | | 6.000 | | | | 2,250,000 | | | 2,252,430 |
Morgan State University Revenue Bonds Series 2003A (NPFGC/FGIC) |
07-01-32 | | | 5.000 | | | | 450,000 | | | 439,601 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,692,031 |
|
|
Massachusetts (7.1%) |
City of Newton Limited General Obligation Bonds State Qualified School Series 2009A |
04-01-25 | | | 4.125 | | | | 2,295,000 | | | 2,304,800 |
Commonwealth of Massachusetts Limited General Obligation Bonds Consolidated Loan Series 2009C |
07-01-38 | | | 4.500 | | | | 1,500,000 | | | 1,335,825 |
Martha’s Vineyard Land Bank Revenue Bonds Series 2002 (AMBAC) |
05-01-32 | | | 5.000 | | | | 3,000,000 | | | 2,901,210 |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 17
Portfolio of Investments (continued)
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Massachusetts (cont.) |
Massachusetts Bay Transportation Authority Revenue Bonds Senior Series 2005A |
07-01-24 | | | 5.000 | % | | | $1,000,000 | | | $1,104,730 |
Massachusetts Development Finance Agency Revenue Bonds Boston College Series 2009Q-2 |
07-01-29 | | | 5.000 | | | | 1,455,000 | | | 1,477,494 |
Massachusetts Development Finance Agency Revenue Bonds WGBH Educational Foundation Series 2002A (AMBAC) |
01-01-42 | | | 5.750 | | | | 4,000,000 | | | 3,769,320 |
Massachusetts Educational Financing Authority Revenue Bonds Issue I Series 2010B A.M.T. |
01-01-31 | | | 5.700 | | | | 8,615,000 | | | 8,090,088 |
Massachusetts Health & Educational Facilities Authority Revenue Bonds Berklee College of Music Series 2007A |
10-01-21 | | | 5.000 | | | | 1,500,000 | | | 1,575,480 |
Massachusetts Health & Educational Facilities Authority Revenue Bonds Tufts University Series 2009M |
02-15-28 | | | 5.500 | | | | 1,000,000 | | | 1,113,510 |
Massachusetts Health & Educational Facilities Authority Unrefunded Revenue Bonds South Shore Series 1999F |
07-01-29 | | | 5.750 | | | | 1,845,000 | | | 1,780,204 |
Massachusetts Housing Finance Agency Revenue Bonds Rental Mortgage Series 1999A (AMBAC) A.M.T. |
07-01-30 | | | 5.500 | | | | 190,000 | | | 176,157 |
Massachusetts Housing Finance Agency Revenue Bonds Single Family Series 2008-139 |
12-01-28 | | | 5.125 | | | | 1,000,000 | | | 1,002,600 |
Massachusetts School Building Authority Revenue Bonds Series 2005A (AGM) |
08-15-23 | | | 5.000 | | | | 6,000,000 | | | 6,322,740 |
Massachusetts Water Resources Authority Refunding Revenue Bonds General Series 2005A (NPFGC) |
08-01-24 | | | 5.250 | | | | 3,000,000 | | | 3,222,030 |
Town of Braintree Limited General Obligation Bonds Municipal Purpose Loan Series 2009 |
05-15-27 | | | 5.000 | | | | 2,000,000 | | | 2,074,200 |
| | | | | | | | | | |
Total | | | | | | | | | | 38,250,388 |
|
|
Michigan (2.8%) |
Capital Region Airport Authority Refunding Revenue Bonds Series 2002B (NPFGC) A.M.T. |
07-01-21 | | | 5.250 | | | | 2,000,000 | | | 2,000,060 |
Charter Township of Canton Limited General Obligation Bonds Capital Improvement Series 2007 (AGM) |
04-01-21 | | | 5.000 | | | | 530,000 | | | 557,390 |
City of Detroit Revenue Bonds Senior Lien Series 2005A (NPFGC/FGIC) |
07-01-27 | | | 5.000 | | | | 1,290,000 | | | 1,199,545 |
Kalamazoo Public Schools Unlimited General Obligation Refunding Bonds Building & Site Series 2006 (AGM) |
05-01-24 | | | 5.000 | | | | 1,285,000 | | | 1,307,436 |
Michigan Municipal Bond Authority Revenue Bonds Drinking Water State Revolving Fund Series 2004 |
10-01-22 | | | 5.000 | | | | 3,850,000 | | | 4,099,711 |
Michigan Tobacco Settlement Finance Authority Revenue Bonds Senior Series 2007A |
06-01-48 | | | 6.000 | | | | 2,800,000 | | | 1,897,420 |
State of Michigan Refunding Revenue Bonds Series 2005 (AGM) |
05-15-22 | | | 5.250 | | | | 2,000,000 | | | 2,183,499 |
State of Michigan Refunding Revenue Bonds Series 2006 (AGM) |
05-15-24 | | | 5.000 | | | | 2,000,000 | | | 2,044,280 |
| | | | | | | | | | |
Total | | | | | | | | | | 15,289,341 |
|
|
Minnesota (2.3%) |
City of St. Louis Park Refunding Revenue Bonds Park Nicollet Health Services Series 2009 |
07-01-39 | | | 5.750 | | | | 13,500,000 | | | 12,574,575 |
|
|
Mississippi (0.2%) |
Mississippi Business Finance Corp. Revenue Bonds Series 2009A |
05-01-24 | | | 4.700 | | | | 1,250,000 | | | 1,205,650 |
|
|
Missouri (2.6%) |
City of St. Louis Refunding Revenue Bonds Lambert International Airport Series 2007A (AGM) |
07-01-23 | | | 5.000 | | | | 1,000,000 | | | 987,760 |
County of Boone Revenue Bonds Boone Hospital Center Series 2008 |
08-01-28 | | | 5.750 | | | | 500,000 | | | 502,925 |
Hannibal Industrial Development Authority Refunding Revenue Bonds Series 2006 |
03-01-22 | | | 5.000 | | | | 1,000,000 | | | 956,710 |
Kansas City Metropolitan Community Colleges Building Corp. Refunding Revenue Bonds Junior College Improvement and Leasehold Series 2006 (NPFGC/FGIC) |
07-01-17 | | | 5.000 | | | | 1,000,000 | | | 1,100,060 |
Metropolitan St. Louis Sewer District Revenue Bonds Series 2004A (NPFGC) |
05-01-24 | | | 5.000 | | | | 2,800,000 | | | 2,884,056 |
Missouri Development Finance Board Revenue Bonds Procter & Gamble Paper Products Series 1999 A.M.T. |
03-15-29 | | | 5.200 | | | | 2,000,000 | | | 1,967,860 |
Missouri State Environmental Improvement & Energy Resources Authority Unrefunded Revenue Bonds Drinking Water Series 2002 |
07-01-23 | | | 5.000 | | | | 265,000 | | | 276,777 |
Missouri State Health & Educational Facilities Authority Refunding Revenue Bonds Lester E. Cox Medical Center Series 1993I (NPFGC) |
06-01-15 | | | 5.250 | | | | 2,500,000 | | | 2,602,825 |
St. Louis Industrial Development Authority Refunding Revenue Bonds Anheuser-Busch Co. Project Series 1991 |
05-01-16 | | | 6.650 | | | | 1,250,000 | | | 1,451,438 |
University of Missouri Revenue Bonds System Facilities Series 2006A |
11-01-26 | | | 5.000 | | | | 1,000,000 | | | 1,039,340 |
| | | | | | | | | | |
Total | | | | | | | | | | 13,769,751 |
|
|
| | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
18 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
Nebraska (0.2%) |
Douglas County Hospital Authority No. 2 Revenue Bonds Health Facilities Immanuel Obligation Group Series 2010 |
01-01-40 | | | 5.625 | % | | | $875,000 | | | $824,521 |
|
|
Nevada (0.7%) |
County of Clark Revenue Bonds Las Vegas-McCarran International Airport Series 2010A |
07-01-34 | | | 5.125 | | | | 4,250,000 | | | 3,885,903 |
|
|
New Hampshire (1.0%) |
New Hampshire Business Finance Authority Revenue Bonds Elliot Hospital Obligation Group Series 2009A |
10-01-39 | | | 6.125 | | | | 2,750,000 | | | 2,654,933 |
New Hampshire Health & Education Facilities Authority Revenue Bonds Dartmouth-Hitchcock Series 2009 |
08-01-38 | | | 6.000 | | | | 2,500,000 | | | 2,590,900 |
| | | | | | | | | | |
Total | | | | | | | | | | 5,245,833 |
|
|
New Jersey (3.7%) |
New Jersey Economic Development Authority Refunding Revenue Bonds Seeing Eye, Inc. Project Series 2005 (AMBAC) |
12-01-24 | | | 5.000 | | | | 1,000,000 | | | 950,760 |
New Jersey Economic Development Authority Revenue Bonds MSU Student Housing Project — Provident Series 2010 |
06-01-31 | | | 5.750 | | | | 950,000 | | | 871,454 |
New Jersey Economic Development Authority Revenue Bonds New Jersey-American Water Co., Inc. Series 1997B (NPFGC/FGIC) A.M.T. |
05-01-32 | | | 5.375 | | | | 8,000,000 | | | 7,626,320 |
New Jersey Educational Facilities Authority Refunding Revenue Bonds Stevens Institute of Technology Series 2007A |
07-01-22 | | | 5.250 | | | | 1,250,000 | | | 1,262,825 |
New Jersey Educational Facilities Authority Revenue Bonds Princeton University Series 2007E |
07-01-28 | | | 5.000 | | | | 1,250,000 | | | 1,309,988 |
New Jersey Educational Facilities Authority Revenue Bonds William Paterson University Series 2008C |
07-01-24 | | | 5.000 | | | | 1,000,000 | | | 1,031,820 |
New Jersey Environmental Infrastructure Trust Prerefunded Revenue Bonds Environmental Series 2007A |
09-01-22 | | | 5.000 | | | | 10,000 | | | 11,586 |
New Jersey Environmental Infrastructure Trust Unrefunded Revenue Bonds Environmental Series 2007A |
09-01-22 | | | 5.000 | | | | 1,220,000 | | | 1,284,758 |
New Jersey Health Care Facilities Financing Authority Revenue Bonds Meridian Health Systems Obligation Group Series 1999 (AGM) |
07-01-24 | | | 5.375 | | | | 2,255,000 | | | 2,255,653 |
New Jersey Health Care Facilities Financing Authority Revenue Bonds Virtua Health Series 2009 |
07-01-33 | | | 5.750 | | | | 750,000 | | | 756,293 |
New Jersey Health Care Facilities Financing Authority Unrefunded Revenue Bonds Atlantic City Medical Series 2002 |
07-01-25 | | | 5.750 | | | | 1,110,000 | | | 1,123,498 |
New Jersey Housing & Mortgage Finance Agency Revenue Bonds Series 2000A-1 (AGM) A.M.T. |
11-01-31 | | | 6.350 | | | | 1,500,000 | | | 1,500,854 |
New Jersey Housing & Mortgage Finance Agency Revenue Bonds Series 2000E-1 (AGM) |
05-01-25 | | | 5.750 | | | | 200,000 | | | 200,098 |
| | | | | | | | | | |
Total | | | | | | | | | | 20,185,907 |
|
|
New Mexico (1.1%) |
New Mexico Hospital Equipment Loan Council Revenue Bonds Presbyterian Healthcare Series 2009 |
08-01-39 | | | 5.000 | | | | 6,500,000 | | | 5,805,150 |
|
|
New York (4.1%) |
Brooklyn Arena Local Development Corp. Revenue Bonds Barclays Center Project Series 2009 |
07-15-30 | | | 6.000 | | | | 1,500,000 | | | 1,443,525 |
New York City Municipal Water Finance Authority Revenue Bonds Series 2005C (NPFGC) |
06-15-27 | | | 5.000 | | | | 8,000,000 | | | 8,197,359 |
New York City Transitional Finance Authority Revenue Bonds Fiscal 2009 Series 2009S-4 |
01-15-25 | | | 5.125 | | | | 2,000,000 | | | 2,077,240 |
New York State Dormitory Authority Revenue Bonds North Shore Long Island Jewish Series 2009A |
05-01-37 | | | 5.500 | | | | 2,000,000 | | | 1,901,700 |
New York State Environmental Facilities Corp. Revenue Bonds Revolving Funds New York City Municipal Water Series 2008A |
06-15-28 | | | 5.000 | | | | 1,000,000 | | | 1,041,660 |
Port Authority of New York & New Jersey Revenue Bonds Consolidated 144th Series 2006 |
10-01-28 | | | 5.000 | | | | 1,000,000 | | | 1,013,430 |
Port Authority of New York & New Jersey Revenue Bonds JFK International Air Terminal #4 Special Project Series 1997 (NPFGC) A.M.T. |
12-01-22 | | | 5.750 | | | | 6,500,000 | | | 6,160,830 |
| | | | | | | | | | |
Total | | | | | | | | | | 21,835,744 |
|
|
North Carolina (0.4%) |
City of High Point Revenue Bonds Series 2008 (AGM) |
11-01-28 | | | 5.000 | | | | 350,000 | | | 357,291 |
County of Cumberland Refunding Certificate of Participation Improvement Projects Series 2009B-1 |
12-01-24 | | | 5.000 | | | | 500,000 | | | 523,230 |
County of Forsyth Certificate of Participation Series 2005 |
02-01-26 | | | 5.000 | | | | 750,000 | | | 764,078 |
North Carolina Eastern Municipal Power Agency Revenue Bonds Series 2009A |
01-01-26 | | | 5.500 | | | | 300,000 | | | 309,903 |
North Carolina Housing Finance Agency Revenue Bonds Home Ownership Series 2000-8-A A.M.T. |
07-01-28 | | | 6.400 | | | | 80,000 | | | 80,965 |
State of North Carolina Revenue Bonds Annual Appropriation Series 2009A |
05-01-27 | | | 5.000 | | | | 305,000 | | | 318,167 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,353,634 |
|
|
| | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 19
Portfolio of Investments (continued)
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
North Dakota (0.3%) |
County of Ward Revenue Bonds Trinity Obligated Group Series 2006 |
07-01-29 | | | 5.125 | % | | | $1,840,000 | | | $1,655,172 |
|
|
Ohio (9.3%) |
City of Cincinnati Unlimited General Obligation Bonds Various Purpose Series 2008A |
12-01-23 | | | 5.000 | | | | 875,000 | | | 935,366 |
City of Cleveland Revenue Bonds Series 2007P |
01-01-24 | | | 5.000 | | | | 2,000,000 | | | 2,090,680 |
City of Cleveland Revenue Bonds Series 2008B-1 (NPFGC) |
11-15-28 | | | 5.000 | | | | 500,000 | | | 500,860 |
City of Columbus Revenue Bonds Systems Series 2008A |
06-01-27 | | | 5.000 | | | | 4,000,000 | | | 4,151,160 |
City of Columbus Unlimited General Obligation Bonds Various Purpose Series 2006A |
12-15-21 | | | 5.000 | | | | 1,435,000 | | | 1,551,852 |
City of Strongsville Limited General Obligation Bonds Various Purpose Series 2009 |
12-01-33 | | | 4.625 | | | | 500,000 | | | 493,400 |
Columbus City School District Unlimited General Obligation Bonds School Facilities Construction & Improvement Series 2009 |
12-01-33 | | | 4.750 | | | | 1,000,000 | | | 961,010 |
County of Hamilton Improvement Revenue Bonds Greater Cincinnati Metropolitan Series 2007A |
12-01-25 | | | 5.000 | | | | 3,425,000 | | | 3,560,664 |
County of Hamilton Improvement Revenue Bonds Metropolitan Sewer District Series 2006A (NPFGC) |
12-01-26 | | | 5.000 | | | | 1,000,000 | | | 1,031,260 |
County of Hamilton Refunding Revenue Bonds Subordinated Series 2006A (AMBAC) |
12-01-26 | | | 5.000 | | | | 1,000,000 | | | 988,170 |
County of Montgomery Limited General Obligation Refunding & Improvement Bonds Various Purpose Series 2005 (NPFGC) |
12-01-24 | | | 5.000 | | | | 2,600,000 | | | 2,686,996 |
Ohio Higher Educational Facility Commission Revenue Bonds Kenyon College Project Series 2010 |
07-01-44 | | | 5.000 | | | | 7,750,000 | | | 6,850,379 |
Ohio Housing Finance Agency Revenue Bonds Mortgage-Backed Securities Program Series 2008F (GNMA/FNMA/FHLMC) |
09-01-28 | | | 5.250 | | | | 750,000 | | | 761,565 |
Ohio State Turnpike Commission Refunding Revenue Bonds Series 1998A (NPFGC/FGIC) |
02-15-26 | | | 5.500 | | | | 3,000,000 | | | 3,284,940 |
Ohio State Water Development Authority Refunding Revenue Bonds Drinking Water Fund Series 2005 |
12-01-21 | | | 5.250 | | | | 3,890,000 | | | 4,509,132 |
12-01-22 | | | 5.250 | | | | 2,625,000 | | | 3,046,470 |
Ohio State Water Development Authority Revenue Bonds Sewer Facilities Anheuser-Busch Project Series 1999 A.M.T. |
08-01-38 | | | 6.000 | | | | 1,000,000 | | | 999,920 |
State of Ohio Revenue Bonds Denison University 2007 Project Series 2007 |
11-01-23 | | | 5.000 | | | | 4,000,000 | | | 4,190,440 |
State of Ohio Revenue Bonds University of Dayton Project Series 2009 |
12-01-24 | | | 5.500 | | | | 3,000,000 | | | 3,149,460 |
The Ohio State University Prerefunded Revenue Bonds Series 2002A |
12-01-31 | | | 5.125 | | | | 1,000,000 | | | 1,075,370 |
The Ohio State University Revenue Bonds Series 2005A |
06-01-25 | | | 5.000 | | | | 3,000,000 | | | 3,082,740 |
| | | | | | | | | | |
Total | | | | | | | | | | 49,901,834 |
|
|
Oregon (2.0%) |
Benton County Hospital Facilities Authority Unrefunded Revenue Bonds Samaritan Health Series 1998 |
10-01-28 | | | 5.125 | | | | 655,000 | | | 608,842 |
City of Salem Limited General Obligation Bonds Series 2009 |
06-01-27 | | | 4.375 | | | | 1,000,000 | | | 970,040 |
Clackamas County Service District No. 1 Revenue Bonds Series 2009A |
12-01-25 | | | 4.250 | | | | 1,690,000 | | | 1,681,161 |
Oregon Health & Science University Unrefunded Revenue Bonds Series 1995A (NPFGC) |
07-01-28 | | | 5.250 | | | | 390,000 | | | 389,996 |
Oregon State Department of Administrative Services Certificate of Participation Series 2001B (AMBAC) |
05-01-26 | | | 5.000 | | | | 2,000,000 | | | 2,009,540 |
Oregon State Facilities Authority Revenue Bonds Linfield College Project Series 2005A |
10-01-25 | | | 5.000 | | | | 750,000 | | | 746,175 |
Oregon State Facilities Authority Revenue Bonds Willamette University Projects Series 2007A |
10-01-27 | | | 5.000 | | | | 1,500,000 | | | 1,449,315 |
Oregon State Housing & Community Services Department Revenue Bonds Single Family Mortgage Program Series 2005A |
07-01-20 | | | 4.400 | | | | 540,000 | | | 545,508 |
Polk, Marion & Benton Counties School District No. 13J Central Unlimited General Obligation Bonds Series 2009A |
06-15-29 | | | 4.375 | | | | 1,300,000 | | | 1,242,475 |
Umatilla County Hospital Facility Authority Prerefunded Revenue Bonds Catholic Health Initiatives Series 2002A |
03-01-32 | | | 5.500 | | | | 1,000,000 | | | 1,046,290 |
| | | | | | | | | | |
Total | | | | | | | | | | 10,689,342 |
|
|
Pennsylvania (3.4%) |
Allegheny County Higher Education Building Authority Revenue Bonds Duquesne University Series 2008 |
03-01-28 | | | 5.000 | | | | 490,000 | | | 486,663 |
Berks County Municipal Authority Revenue Bonds Reading Hospital Medical Center Project Series 1993 (NPFGC) |
10-01-14 | | | 5.700 | | | | 700,000 | | | 747,845 |
Commonwealth of Pennsylvania General Obligation Bonds 1st Series 2010A |
02-15-19 | | | 5.000 | | | | 2,000,000 | | | 2,279,600 |
The accompanying Notes to Financial Statements are an integral part of this statement.
20 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Pennsylvania (cont.) |
County of Bucks Unlimited General Obligation Bonds Series 2008 |
05-01-23 | | | 5.250 | % | | | $350,000 | | | $385,018 |
Cumberland County Municipal Authority Revenue Bonds Aicup Financing Program-Dickinson College Series 2009 |
11-01-39 | | | 5.000 | | | | 1,200,000 | | | 1,129,944 |
Delaware County Industrial Development Authority Revenue Bonds Philadelphia Suburban Water Facilities Series 2001 (AMBAC) A.M.T. |
10-01-31 | | | 5.350 | | | | 3,000,000 | | | 2,945,070 |
Delaware Valley Regional Financial Authority Revenue Bonds Series 1997C (AMBAC) |
07-01-27 | | | 7.750 | | | | 1,000,000 | | | 1,224,880 |
Pennsylvania Economic Development Financing Authority Revenue Bonds Proctor & Gamble Paper Project Series 2001 A.M.T. |
03-01-31 | | | 5.375 | | | | 1,000,000 | | | 976,660 |
Pennsylvania Higher Educational Facilities Authority Revenue Bonds Edinboro University Foundation Series 2010 |
07-01-43 | | | 6.000 | | | | 725,000 | | | 671,655 |
Pennsylvania Higher Educational Facilities Authority Unrefunded Revenue Bonds Drexel University Series 1997 (NPFGC) |
05-01-22 | | | 5.750 | | | | 1,050,000 | | | 1,053,150 |
Pennsylvania State University Revenue Bonds Series 2005 |
09-01-24 | | | 5.000 | | | | 1,250,000 | | | 1,308,537 |
Philadelphia Municipal Authority Revenue Bonds Lease Series 2009 |
04-01-34 | | | 6.500 | | | | 200,000 | | | 204,498 |
Philadelphia Redevelopment Authority Subordinated Revenue Bonds Series 1986B Escrowed to Maturity (GNMA) |
06-01-17 | | | 9.000 | | | | 450,000 | | | 623,084 |
Washington County Industrial Development Authority Revenue Bonds Washington Jefferson College Series 2010 |
11-01-36 | | | 5.000 | | | | 4,850,000 | | | 4,323,920 |
| | | | | | | | | | |
Total | | | | | | | | | | 18,360,524 |
|
|
Puerto Rico (2.1%)(e) |
Puerto Rico Electric Power Authority Refunding Revenue Bonds Series 2007UU (AGM) |
07-01-23 | | | 5.000 | | | | 1,000,000 | | | 1,002,320 |
Puerto Rico Electric Power Authority Revenue Bonds Series 2003NN (NPFGC) |
07-01-21 | | | 5.250 | | | | 3,500,000 | | | 3,596,075 |
Puerto Rico Electric Power Authority Revenue Bonds Series 2008WW |
07-01-23 | | | 5.375 | | | | 2,500,000 | | | 2,510,950 |
Puerto Rico Electric Power Authority Revenue Bonds Series 2010XX |
07-01-40 | | | 5.250 | | | | 1,500,000 | | | 1,290,585 |
Puerto Rico Highway & Transportation Authority Revenue Bonds Series 2003AA (NPFGC) |
07-01-20 | | | 5.500 | | | | 500,000 | | | 511,780 |
Puerto Rico Industrial Tourist Educational Medical & Environmental Central Facilities Financing Authority Revenue Bonds Intermediate American University Series 1998A (NPFGC) |
10-01-22 | | | 5.000 | | | | 2,500,000 | | | 2,432,250 |
| | | | | | | | | | |
Total | | | | | | | | | | 11,343,960 |
|
|
South Carolina (4.2%) |
City of Rock Hill Improvement Refunding Revenue Bonds Series 2003A (AGM) |
01-01-30 | | | 5.000 | | | | 4,000,000 | | | 3,848,960 |
Coastal Carolina University Unrefunded Revenue Bonds Series 1999 (AMBAC) |
06-01-26 | | | 5.300 | | | | 1,810,000 | | | 1,811,014 |
County of Berkeley Unlimited General Obligation Refunding & Improvement Bonds Series 2003 (AGM) |
09-01-28 | | | 5.000 | | | | 4,000,000 | | | 4,002,520 |
County of Berkeley Unrefunded Revenue Bonds Systems Series 2003 (NPFGC) |
06-01-23 | | | 5.250 | | | | 245,000 | | | 253,911 |
County of Georgetown Refunding Revenue Bonds International Paper Co. Project Series 2000A |
03-15-14 | | | 5.950 | | | | 1,000,000 | | | 1,077,530 |
Grand Strand Water & Sewer Authority Revenue Bonds Series 2001 (AGM) |
06-01-31 | | | 5.000 | | | | 4,000,000 | | | 4,000,160 |
Piedmont Municipal Power Agency Refunding Revenue Bonds Electric Series 1991 (NPFGC/FGIC) |
01-01-21 | | | 6.250 | | | | 1,250,000 | | | 1,428,438 |
South Carolina Jobs-Economic Development Authority Unrefunded Revenue Bonds Bon Secours Series 2002B |
11-15-30 | | | 5.625 | | | | 3,165,000 | | | 2,970,036 |
South Carolina State Housing Finance & Development Authority Revenue Bonds Series 1999A-2 (AGM) A.M.T. |
07-01-29 | | | 5.400 | | | | 515,000 | | | 509,067 |
South Carolina State Public Service Authority Revenue Bonds Santee Cooper Series 2006A (NPFGC) |
01-01-27 | | | 5.000 | | | | 2,600,000 | | | 2,660,450 |
South Carolina State Public Service Authority Revenue Bonds Santee Cooper Series 2008A |
01-01-28 | | | 5.375 | | | | 250,000 | | | 265,000 |
| | | | | | | | | | |
Total | | | | | | | | | | 22,827,086 |
|
|
Texas (2.9%) |
Bexar County Health Facilities Development Corp. Revenue Bonds Army Retirement Residence Project Series 2010 |
07-01-45 | | | 6.200 | | | | 1,100,000 | | | 1,041,832 |
Capital Area Cultural Education Facilities Finance Corp. Revenue Bonds Roman Catholic Diocese Series 2005B-RMKT |
04-01-45 | | | 6.125 | | | | 550,000 | | | 518,304 |
City of Dallas Limited General Obligation Bonds Series 2005 |
02-15-25 | | | 5.000 | | | | 820,000 | | | 840,393 |
City of Houston Revenue Bonds Subordinated Lien Series 2000A (AGM) A.M.T. |
07-01-30 | | | 5.625 | | | | 3,000,000 | | | 2,959,830 |
City of San Antonio Prerefunded Revenue Bonds Series 1997 Escrowed to Maturity |
02-01-20 | | | 5.500 | | | | 1,055,000 | | | 1,262,540 |
Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds Series 2000A (NPFGC/FGIC) A.M.T. |
11-01-30 | | | 5.750 | | | | 5,000,000 | | | 5,002,500 |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 21
Portfolio of Investments (continued)
Seligman National Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Texas (cont.) |
Harris County Health Facilities Development Corp. Revenue Bonds St. Luke’s Episcopal Hospital Project Series 1991 Escrowed to Maturity |
02-15-21 | | | 6.750 | % | | | $2,000,000 | | | $2,269,340 |
University of Texas System Refunding Revenue Bonds Series 2007B |
07-01-23 | | | 5.250 | | | | 1,000,000 | | | 1,146,720 |
Uptown Development Authority Tax Allocation Bonds Infrastructure Improvement Facilities Series 2009 |
09-01-29 | | | 5.500 | | | | 500,000 | | | 480,400 |
| | | | | | | | | | |
Total | | | | | | | | | | 15,521,859 |
|
|
Utah (0.4%) |
Utah Transit Authority Revenue Bonds Series 2008A |
06-15-25 | | | 5.000 | | | | 2,000,000 | | | 2,125,440 |
|
|
Virginia (0.3%) |
Virginia Resources Authority Revenue Bonds State Revolving Fund Series 2009 |
10-01-26 | | | 5.000 | | | | 1,500,000 | | | 1,609,425 |
|
|
Washington (1.2%) |
Chelan County Public Utility District No. 1 Revenue Bonds Chelan Hydro Series 2001B (NPFGC) A.M.T. |
01-01-36 | | | 5.600 | | | | 2,500,000 | | | 2,384,025 |
Washington Health Care Facilities Authority Revenue Bonds Overlake Hospital Medical Center Series 2010 |
07-01-30 | | | 5.500 | | | | 3,000,000 | | | 2,913,060 |
Washington Higher Education Facilities Authority Refunding Revenue Bonds Whitworth University Project Series 2009 |
10-01-40 | | | 5.625 | | | | 1,050,000 | | | 972,699 |
| | | | | | | | | | |
Total | | | | | | | | | | 6,269,784 |
|
|
West Virginia (0.1%) |
West Virginia Economic Development Authority Refunding Revenue Bonds Appalachian Power Amos Series 2010A |
12-01-38 | | | 5.375 | | | | 800,000 | | | 745,048 |
|
|
Wisconsin (4.3%) |
City of La Crosse Refunding Revenue Bonds Northern States Power Co. Project Series 1996 A.M.T. |
11-01-21 | | | 6.000 | | | | 6,000,000 | | | 6,296,880 |
Monroe Redevelopment Authority Revenue Bonds Monroe Clinic, Inc. Series 2009 |
02-15-39 | | | 5.875 | | | | 5,000,000 | | | 4,862,750 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds Aurora Health Care, Inc. Series 2010A |
04-15-39 | | | 5.625 | | | | 1,375,000 | | | 1,280,785 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds Meriter Hospital, Inc. Series 2009 |
12-01-38 | | | 6.000 | | | | 2,725,000 | | | 2,702,928 |
Wisconsin Health & Educational Facilities Authority Revenue Bonds ProHealth Care, Inc. Obligation Group Series 2009 |
02-15-32 | | | 6.625 | | | | 1,000,000 | | | 1,018,280 |
02-15-39 | | | 6.625 | | | | 6,725,000 | | | 6,950,960 |
| | | | | | | | | | |
Total | | | | | | | | | | 23,112,583 |
|
|
Total Municipal Bonds |
(Cost: $520,324,165) | | $513,130,894 |
|
|
| | | | | | | | | | |
| | | | | | | | | | |
Municipal Notes (3.6%) |
| | | | | Amount
| | | |
Issue
| | Effective
| | | Payable at
| | | |
Description(b,c,d) | | Yield | | | Maturity | | | Value(a) |
|
|
Colorado (0.3%) |
Colorado Educational & Cultural Facilities Authority Revenue Bonds UJA Federation of Northern New Jersey V.R.D.N. Series 2007 (JP Morgan Chase Bank) |
05-01-37 | | | 0.230 | % | | | $1,770,000 | | | $1,770,000 |
|
|
Illinois (1.7%) |
City of Chicago Unlimited General Obligation Bonds V.R.D.N. Series 2003B-3 (JP Morgan Chase Bank) |
01-01-34 | | | 0.230 | | | | 9,000,000 | | | 9,000,000 |
|
|
Iowa (0.9%) |
Iowa Finance Authority Revenue Bonds Iowa Health System V.R.D.N. Series 2009A (JP Morgan Chase Bank) |
02-15-35 | | | 0.220 | | | | 805,000 | | | 805,000 |
Iowa Finance Authority Revenue Bonds Holy Family Catholic Schools V.R.D.N. Series 2006 (Wells Fargo Bank) |
03-01-36 | | | 0.230 | | | | 2,000,000 | | | 2,000,000 |
Iowa Higher Education Loan Authority Revenue Bonds Private College — Des Moines V.R.D.N. Series 2003 (U.S. Bank) |
10-01-33 | | | 0.230 | | | | 2,000,000 | | | 2,000,000 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,805,000 |
|
|
Minnesota (0.1%) |
Minneapolis & St. Paul Housing & Redevelopment Authority Revenue Bonds Allina Health Systems V.R.D.N. Series 2009B-2 (JP Morgan Chase Bank) |
11-15-35 | | | 0.220 | | | | 600,000 | | | 600,000 |
|
|
Missouri (0.2%) |
Missouri State Health & Educational Facilities Authority Revenue Bonds Bethesda Health Group V.R.D.N. Series 2009 (U.S. Bank) |
08-01-41 | | | 0.230 | | | | 1,000,000 | | | 1,000,000 |
|
|
Virginia (0.4%) |
Albermarle County Economic Development Authority Revenue Bonds Martha Jefferson Hospital V.R.D.N. Series 2008C (Wells Fargo Bank) |
10-01-48 | | | 0.230 | | | | 2,300,000 | | | 2,300,000 |
|
|
Total Municipal Notes |
(Cost: $19,475,000) | | $19,475,000 |
|
|
| | | | | | |
Money Market Fund (0.1%) |
| | Shares | | | Value(a) |
|
JPMorgan Tax-Free Money Market Fund, 0.000% | | | 663,378 | (g) | | $663,378 |
|
|
Total Money Market Fund |
(Cost: $663,378) | | $663,378 |
|
|
Total Investments in Securities |
(Cost: $540,462,543)(h) | | $533,269,272 |
|
|
The accompanying Notes to Financial Statements are an integral part of this statement.
22 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
Notes to Portfolio of Investments
| | |
(a) | | Securities are valued by using policies described in Note 2 to the financial statements. |
|
(b) | | The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue: |
| | | | |
ACA | | — | | ACA Financial Guaranty Corporation |
AGCP | | — | | Assured Guaranty Corporation |
AGM | | — | | Assured Guaranty Municipal Corporation |
AMBAC | | — | | Ambac Assurance Corporation |
BHAC | | — | | Berkshire Hathaway Assurance Corporation |
BIG | | — | | Bond Investors Guarantee |
BNY | | — | | Bank of New York |
CGIC | | — | | Capital Guaranty Insurance Company |
CIFG | | — | | IXIS Financial Guaranty |
FGIC | | — | | Financial Guaranty Insurance Company |
FHA | | — | | Federal Housing Authority |
FHLMC | | — | | Federal Home Loan Mortgage Corporation |
FNMA | | — | | Federal National Mortgage Association |
GNMA | | — | | Government National Mortgage Association |
MGIC | | — | | Mortgage Guaranty Insurance Corporation |
NPFGC | | — | | National Public Finance Guarantee Corporation |
TCRS | | — | | Transferable Custodial Receipts |
XLCA | | — | | XL Capital Assurance |
| | |
(c) | | The following abbreviations may be used in the portfolio descriptions: |
| | | | |
A.M.T. | | — | | Alternative Minimum Tax -- At March 31, 2011, the value of securities subject to alternative minimum tax represented 11.62% of net assets. |
B.A.N. | | — | | Bond Anticipation Note |
C.P. | | — | | Commercial Paper |
R.A.N. | | — | | Revenue Anticipation Note |
T.A.N. | | — | | Tax Anticipation Note |
T.R.A.N. | | — | | Tax & Revenue Anticipation Note |
V.R. | | — | | Variable Rate |
V.R.D.B. | | — | | Variable Rate Demand Bond |
V.R.D.N. | | — | | Variable Rate Demand Note |
| | |
(d) | | The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on March 31, 2011. |
|
(e) | | The Fund may invest in debt obligations issued by or on behalf of territories and possessions of the United States and sovereign nations within the borders of the United States. These securities amounted to 2.10% of net assets at March 31, 2011. |
|
(f) | | For zero coupons, the interest rate disclosed represents the annualized effective yield on the date of acquisition. |
|
(g) | | The rate shown is the seven-day current annualized yield at March 31, 2011. |
|
(h) | | At March 31, 2011, the cost of securities for federal income tax purposes was approximately $540,463,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: |
| | | | |
Unrealized appreciation | | | $6,809,000 | |
Unrealized depreciation | | | (14,003,000 | ) |
| | | | |
Net unrealized depreciation | | | $(7,194,000 | ) |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 23
Portfolio of Investments (continued)
Seligman National Municipal Fund
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| | |
| • | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
|
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
|
| • | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
| | | | | | | | | | | | | | | | |
| | Fair Value at March 31, 2011 | |
| | Level 1
| | | Level 2
| | | | | | | |
| | Quoted Prices
| | | Other
| | | Level 3
| | | | |
| | in Active
| | | Significant
| | | Significant
| | | | |
| | Markets for
| | | Observable
| | | Unobservable
| | | | |
Description(a) | | Identical Assets | | | Inputs(b) | | | Inputs | | | Total | |
Bonds | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $— | | | | $513,130,894 | | | | $— | | | | $513,130,894 | |
| | | | | | | | | | | | | | | | |
Total Bonds | | | — | | | | 513,130,894 | | | | — | | | | 513,130,894 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Municipal Notes | | | — | | | | 19,475,000 | | | | — | | | | 19,475,000 | |
Unaffiliated Money Market Fund(c) | | | 663,378 | | | | — | | | | — | | | | 663,378 | |
| | | | | | | | | | | | | | | | |
Total Other | | | 663,378 | | | | 19,475,000 | | | | — | | | | 20,138,378 | |
| | | | | | | | | | | | | | | | |
Total | | | $663,378 | | | | $532,605,894 | | | | $— | | | | $533,269,272 | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | See the Portfolio of Investments for all investment classifications not indicated in the table. |
|
(b) | | There were no significant transfers between Levels 1 and 2 during the period. |
|
(c) | | Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
24 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman National Municipal Fund
How to find information about the Fund’s quarterly portfolio holdings
| | |
(i) | | The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; |
|
(ii) | | The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov; |
|
(iii) | | The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and |
|
(iv) | | The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 25
Seligman California Municipal High-Yield FundMarch 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
| | | | | | | | | | |
Municipal Bonds (90.7%) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
Airport (2.4%) |
County of Sacramento Revenue Bonds Senior Series 2009B |
07-01-39 | | | 5.750 | % | | | $450,000 | | | $444,996 |
Los Angeles Department of Airports Subordinated Revenue Bonds Los Angeles International Series 2010B |
05-15-35 | | | 5.000 | | | | 225,000 | | | 207,520 |
| | | | | | | | | | |
Total | | | | | | | | | | 652,516 |
|
|
College (8.0%) |
California Educational Facilities Authority Revenue Bonds California Lutheran University Series 2008 |
10-01-21 | | | 5.250 | | | | 665,000 | | | 665,818 |
California Educational Facilities Authority Revenue Bonds Loyola Marymount University Series 2010A |
10-01-40 | | | 5.125 | | | | 175,000 | | | 154,159 |
California Educational Facilities Authority Revenue Bonds Scripps College Series 2001 |
08-01-31 | | | 5.000 | | | | 1,500,000 | | | 1,389,735 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,209,712 |
|
|
Electric (3.5%) |
California State Department of Water Resources Revenue Bonds Series 2010M |
05-01-15 | | | 5.000 | | | | 400,000 | | | 449,180 |
City of Vernon Revenue Bonds Series 2009A |
08-01-21 | | | 5.125 | | | | 500,000 | | | 501,915 |
| | | | | | | | | | |
Total | | | | | | | | | | 951,095 |
|
|
Health Care — Hospital (21.6%) |
California Health Facilities Financing Authority Revenue Bonds Adventist Health System West Series 2009A |
09-01-39 | | | 5.750 | | | | 1,000,000 | | | 932,599 |
California Health Facilities Financing Authority Revenue Bonds Cedars-Sinai Medical Center Series 2009 |
08-15-39 | | | 5.000 | | | | 750,000 | | | 646,485 |
California Health Facilities Financing Authority Revenue Bonds St. Joseph Health System Series 2009A |
07-01-29 | | | 5.500 | | | | 700,000 | | | 668,143 |
California Municipal Finance Authority Revenue Bonds Community Hospitals Series 2009 |
02-01-39 | | | 5.500 | | | | 750,000 | | | 609,773 |
California Statewide Communities Development Authority Revenue Bonds Cottage Health Obligation Group Series 2010 |
11-01-30 | | | 5.250 | | | | 100,000 | | | 93,275 |
California Statewide Communities Development Authority Revenue Bonds John Muir Health Series 2006A |
08-15-32 | | | 5.000 | | | | 550,000 | | | 483,005 |
California Statewide Communities Development Authority Revenue Bonds Sutter Health Series 2002B |
08-15-42 | | | 5.625 | | | | 500,000 | | | 464,965 |
City of Torrance Revenue Bonds Torrance Memorial Medical Center Series 2010A |
09-01-30 | | | 5.000 | | | | 450,000 | | | 395,492 |
Palomar Pomerado Health Certificate of Participation Series 2009 |
11-01-39 | | | 6.750 | | | | 350,000 | | | 330,992 |
Washington Township Health Care District Revenue Bonds Series 1999 |
07-01-29 | | | 5.250 | | | | 1,500,000 | | | 1,312,754 |
| | | | | | | | | | |
Total | | | | | | | | | | 5,937,483 |
|
|
Housing — Multi-family (7.3%) |
California Housing Finance Agency Revenue Bonds Multifamily Housing III Series 1999A A.M.T. |
02-01-36 | | | 5.375 | | | | 2,280,000 | | | 2,006,400 |
|
|
Lease (3.6%) |
Los Angeles Municipal Improvement Corp. Revenue Bonds Capital Equipment Series 2008A |
09-01-24 | | | 5.000 | | | | 1,000,000 | | | 985,840 |
|
|
School (5.7%) |
Lakeside Union School District San Diego County Unlimited General Obligation Bonds Series 2009 |
08-01-33 | | | 5.000 | | | | 1,590,000 | | | 1,577,216 |
|
|
Special District — Tax Allocation (14.5%) |
Bakersfield Redevelopment Agency Tax Allocation Bonds Old Town Kern Pioneer Series 2009A |
08-01-29 | | | 7.500 | | | | 330,000 | | | 311,952 |
Bakersfield Redevelopment Agency Tax Allocation Bonds Southeast Bakersfield Series 2009B |
08-01-29 | | | 7.250 | | | | 195,000 | | | 188,707 |
Carson Redevelopment Agency Tax Allocation Bonds Housing Series 2010A |
10-01-30 | | | 5.000 | | | | 250,000 | | | 204,820 |
County of Riverside Economic Development Agency Tax Allocation Bonds Housing Series 2010A |
10-01-39 | | | 6.000 | | | | 300,000 | | | 264,843 |
Folsom Redevelopment Agency Tax Allocation Bonds Central Folsom Redevelopment Project Series 2009 |
08-01-29 | | | 5.125 | | | | 200,000 | | | 182,968 |
08-01-36 | | | 5.500 | | | | 200,000 | | | 181,030 |
Palmdale Civic Authority Refunding Revenue Bonds Redevelopment Project No. 1 Series 2009A |
07-01-27 | | | 6.000 | | | | 1,000,000 | | | 1,007,001 |
San Francisco City & County Redevelopment Agency Tax Allocation Bonds Mission Bay South Redevelopment Series 2009D |
08-01-29 | | | 6.375 | | | | 500,000 | | | 471,380 |
San Francisco City & County Redevelopment Agency Tax Allocation Bonds Redevelopment Projects Series 2009B |
08-01-28 | | | 6.125 | | | | 700,000 | | | 654,801 |
Santee Community Development Commission Tax Allocation Bonds Redevelopment Project Series 2011A |
08-01-31 | | | 7.000 | | | | 75,000 | | | 75,519 |
The accompanying Notes to Financial Statements are an integral part of this statement.
26 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal High-Yield Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b,c) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Special District — Tax Allocation (cont.) |
Union City Community Redevelopment Agency Tax Allocation Bonds Subordinated Lien Community Redevelopment Project Series 2011 |
12-01-12 | | | 3.000 | % | | | $445,000 | | | $452,485 |
| | | | | | | | | | |
Total | | | | | | | | | | 3,995,506 |
|
|
State (17.1%) |
State of California Unlimited General Obligation Bonds Series 2008 |
08-01-34 | | | 5.000 | | | | 500,000 | | | 455,705 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2005 |
03-01-32 | | | 5.000 | | | | 1,000,000 | | | 935,910 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2006 |
03-01-16 | | | 5.000 | | | | 245,000 | | | 272,136 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2007 |
12-01-32 | | | 5.000 | | | | 500,000 | | | 467,335 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2009 |
04-01-25 | | | 5.625 | | | | 500,000 | | | 521,740 |
04-01-31 | | | 5.750 | | | | 1,000,000 | | | 1,025,760 |
04-01-38 | | | 6.000 | | | | 500,000 | | | 510,815 |
State of California Unlimited General Obligation Refunding Bonds Series 2007 |
08-01-14 | | | 5.000 | | | | 465,000 | | | 511,970 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,701,371 |
|
|
Toll Road (5.2%) |
Foothill-Eastern Transportation Corridor Agency Refunding Revenue Bonds Series 1999 |
01-15-40 | | | 5.750 | | | | 1,500,000 | | | 1,241,055 |
San Joaquin Hills Transportation Corridor Agency Revenue Bonds Senior Lien Series 1993 |
01-01-33 | | | 5.000 | | | | 300,000 | | | 202,146 |
| | | | | | | | | | |
Total | | | | | | | | | | 1,443,201 |
|
|
Water & Sewer (1.8%) |
San Diego Public Facilities Financing Authority Revenue Bonds Senior Series 2009A |
05-15-34 | | | 5.250 | | | | 500,000 | | | 490,130 |
|
|
Total Municipal Bonds |
(Cost: $26,448,088) | | $24,950,470 |
|
|
| | | | | | | | | | |
| | | | | | | | | | |
Municipal Notes (2.4%) |
| | | | | Amount
| | | |
Issue
| | Effective
| | | Payable at
| | | |
Description(b,c,d) | | Yield | | | Maturity | | | Value(a) |
|
Floating Rate Notes |
California Infrastructure & Economic Development Bank Revenue Bonds Pacific Gas & Electric Co. V.R.D.N. Series 2009 (Wells Fargo Bank N.A) |
11-01-26 | | | 0.200 | % | | | $400,000 | | | $400,000 |
California Infrastructure & Economic Development Bank Revenue Bonds California Academy V.R.D.N. Series 2008A (U.S. Bank) |
09-01-38 | | | 0.170 | | | | 200,000 | | | 200,000 |
Los Angeles County Metropolitan Transportation Authority Refunding Revenue Bonds Proposition C V.R.D.N. 2nd Senior Series 2009A-1 (Bank of Nova Scotia) |
07-01-23 | | | 0.210 | | | | 60,000 | | | 60,000 |
|
|
Total Municipal Notes |
(Cost: $660,000) | | $660,000 |
|
|
| | | | | | |
Money Market Fund (0.2%) |
| | Shares | | | Value(a) |
|
JPMorgan Tax-Free Money Market Fund, 0.000% | | | 51,674 | (e) | | $51,674 |
|
|
Total Money Market Fund |
(Cost: $51,674) | | $51,674 |
|
|
Total Investments in Securities |
(Cost: $27,159,762)(f) | | $25,662,144 |
|
|
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 27
Portfolio of Investments (continued)
Seligman California Municipal High-Yield Fund
Notes to Portfolio of Investments
| | |
(a) | | Securities are valued by using policies described in Note 2 to the financial statements. |
|
(b) | | The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue: |
| | | | |
ACA | | — | | ACA Financial Guaranty Corporation |
AGCP | | — | | Assured Guaranty Corporation |
AGM | | — | | Assured Guaranty Municipal Corporation |
AMBAC | | — | | Ambac Assurance Corporation |
BHAC | | — | | Berkshire Hathaway Assurance Corporation |
BIG | | — | | Bond Investors Guarantee |
BNY | | — | | Bank of New York |
CGIC | | — | | Capital Guaranty Insurance Company |
CIFG | | — | | IXIS Financial Guaranty |
FGIC | | — | | Financial Guaranty Insurance Company |
FHA | | — | | Federal Housing Authority |
FHLMC | | — | | Federal Home Loan Mortgage Corporation |
FNMA | | — | | Federal National Mortgage Association |
GNMA | | — | | Government National Mortgage Association |
MGIC | | — | | Mortgage Guaranty Insurance Corporation |
NPFGC | | — | | National Public Finance Guarantee Corporation |
TCRS | | — | | Transferable Custodial Receipts |
XLCA | | — | | XL Capital Assurance |
| | |
(c) | | The following abbreviations may be used in the portfolio descriptions: |
| | | | |
A.M.T. | | — | | Alternative Minimum Tax — At March 31, 2011, the value of securities subject to alternative minimum tax represented 7.30% of net assets. |
B.A.N. | | — | | Bond Anticipation Note |
C.P. | | — | | Commercial Paper |
R.A.N. | | — | | Revenue Anticipation Note |
T.A.N. | | — | | Tax Anticipation Note |
T.R.A.N. | | — | | Tax & Revenue Anticipation Note |
V.R. | | — | | Variable Rate |
V.R.D.B. | | — | | Variable Rate Demand Bond |
V.R.D.N. | | — | | Variable Rate Demand Note |
| | |
(d) | | The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on March 31, 2011. |
|
(e) | | The rate shown is the seven-day current annualized yield at March 31, 2011. |
|
(f) | | At March 31, 2011, the cost of securities for federal income tax purposes was approximately $27,160,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: |
| | | | |
Unrealized appreciation | | | $106,000 | |
Unrealized depreciation | | | (1,604,000 | ) |
| | | | |
Net unrealized depreciation | | | ($1,498,000 | ) |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
28 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal High-Yield Fund
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| | |
| • | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
|
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
|
| • | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
| | | | | | | | | | | | | | | | |
| | Fair Value at March 31, 2011 | |
| | Level 1
| | | Level 2
| | | | | | | |
| | Quoted Prices
| | | Other
| | | Level 3
| | | | |
| | in Active
| | | Significant
| | | Significant
| | | | |
| | Markets for
| | | Observable
| | | Unobservable
| | | | |
Description(a) | | Identical Assets | | | Inputs(b) | | | Inputs | | | Total | |
Bonds | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $— | | | | $24,950,470 | | | | $— | | | | $24,950,470 | |
| | | | | | | | | | | | | | | | |
Total Bonds | | | — | | | | 24,950,470 | | | | — | | | | 24,950,470 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Municipal Notes | | | — | | | | 660,000 | | | | — | | | | 660,000 | |
Unaffiliated Money Market Fund(c) | | | — | | | | 51,674 | | | | — | | | | 51,674 | |
| | | | | | | | | | | | | | | | |
Total Other | | | — | | | | 711,674 | | | | — | | | | 711,674 | |
| | | | | | | | | | | | | | | | |
Total | | | $— | | | | $25,662,144 | | | | $— | | | | $25,662,144 | |
| | |
(a) | | See the Portfolio of Investments for all investment classifications not indicated in the table. |
|
(b) | | There were no significant transfers between Levels 1 and 2 during the period. |
|
(c) | | Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 29
Portfolio of Investments (continued)
Seligman California Municipal High-Yield Fund
How to find information about the Fund’s quarterly portfolio holdings
| | |
(i) | | The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; |
|
(ii) | | The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov; |
|
(iii) | | The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and |
|
(iv) | | The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611. |
The accompanying Notes to Financial Statements are an integral part of this statement.
30 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal Quality FundMarch 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
| | | | | | | | | | |
Municipal Bonds (93.8%) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b) | | Rate | | | Amount | | | Value(a) |
|
Airport (2.4%) |
County of Sacramento Revenue Bonds Senior Series 2009B |
07-01-39 | | | 5.750 | % | | | $550,000 | | | $543,884 |
Los Angeles Department of Airports Subordinated Revenue Bonds Los Angeles International Series 2010B |
05-15-35 | | | 5.000 | | | | 225,000 | | | 207,520 |
| | | | | | | | | | |
Total | | | | | | | | | | 751,404 |
|
|
College (16.2%) |
California Educational Facilities Authority Revenue Bonds Loyola Marymount University Series 2010A |
10-01-40 | | | 5.125 | | | | 225,000 | | | 198,205 |
California Educational Facilities Authority Revenue Bonds Scripps College Series 2007 (NPFGC) |
11-01-25 | | | 5.000 | | | | 1,315,000 | | | 1,324,481 |
California State University Revenue Bonds Systemwide Series 2007A (AGM) |
11-01-27 | | | 5.000 | | | | 1,250,000 | | | 1,248,550 |
California Statewide Communities Development Authority Revenue Bonds Polytechnic School Series 2009 |
12-01-34 | | | 5.000 | | | | 735,000 | | | 673,899 |
University of California Revenue Bonds Series 2008L |
05-15-26 | | | 5.000 | | | | 1,500,000 | | | 1,553,474 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,998,609 |
|
|
Electric (15.7%) |
Anaheim Public Financing Authority Revenue Bonds Anaheim Electric Systems Distribution Series 2009 |
10-01-25 | | | 5.000 | | | | 1,500,000 | | | 1,534,035 |
California State Department of Water Resources Revenue Bonds Series 2010M |
05-01-15 | | | 5.000 | | | | 600,000 | | | 673,770 |
City of Redding Certificate of Participation Series 2008A (AGM) |
06-01-27 | | | 5.000 | | | | 865,000 | | | 848,954 |
City of Riverside Revenue Bonds Series 2008D (AGM) |
10-01-28 | | | 5.000 | | | | 1,325,000 | | | 1,314,321 |
Southern California Public Power Authority Revenue Bonds Milford Wind Corridor Project Series 2010-1 |
07-01-30 | | | 5.000 | | | | 500,000 | | | 487,890 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,858,970 |
|
|
Health Care — Hospital (16.1%) |
California Health Facilities Financing Authority Revenue Bonds Adventist Health System West Series 2009A |
09-01-39 | | | 5.750 | | | | 1,000,000 | | | 932,600 |
California Health Facilities Financing Authority Revenue Bonds Cedars-Sinai Medical Center Series 2009 |
08-15-39 | | | 5.000 | | | | 900,000 | | | 775,782 |
California Health Facilities Financing Authority Revenue Bonds Scripps Health Series 2010A |
11-15-36 | | | 5.000 | | | | 750,000 | | | 645,443 |
California Health Facilities Financing Authority Revenue Bonds St. Joseph Health System Series 2009A |
07-01-29 | | | 5.500 | | | | 800,000 | | | 763,592 |
California Statewide Communities Development Authority Revenue Bonds Cottage Health Obligation Group Series 2010 |
11-01-30 | | | 5.250 | | | | 100,000 | | | 93,275 |
California Statewide Communities Development Authority Revenue Bonds John Muir Health Series 2009 |
07-01-39 | | | 5.125 | | | | 500,000 | | | 445,100 |
California Statewide Communities Development Authority Revenue Bonds Kaiser Permanente Series 2002A |
11-01-32 | | | 5.500 | | | | 1,000,000 | | | 941,019 |
City of Torrance Revenue Bonds Torrance Memorial Medical Center Series 2010A |
09-01-30 | | | 5.000 | | | | 450,000 | | | 395,492 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,992,303 |
|
|
Lease (7.6%) |
Eastern Municipal Water District Certificate of Participation Series 1991 (NPFGC/FGIC) |
07-01-12 | | | 6.750 | | | | 1,330,000 | | | 1,376,497 |
San Mateo County Board of Education Refunding Certificate of Participation Series 2009 |
06-01-35 | | | 5.250 | | | | 1,000,000 | | | 983,790 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,360,287 |
|
|
Miscellaneous Revenue (1.2%) |
California Infrastructure & Economic Development Bank Revenue Bonds Series 2008 |
02-01-33 | | | 5.250 | | | | 400,000 | | | 382,940 |
|
|
School (2.3%) |
Los Angeles Unified School District Unlimited General Obligation Bonds Series 2009D |
01-01-34 | | | 5.000 | | | | 750,000 | | | 708,098 |
|
|
Special District — Tax Allocation (8.3%) |
Carson Redevelopment Agency Tax Allocation Bonds Housing Series 2010A |
10-01-30 | | | 5.000 | | | | 250,000 | | | 204,820 |
County of Riverside Economic Development Agency Tax Allocation Bonds Housing Series 2010A |
10-01-39 | | | 6.000 | | | | 350,000 | | | 308,984 |
Palmdale Civic Authority Refunding Revenue Bonds Redevelopment Project No. 1 Series 2009A |
07-01-27 | | | 6.000 | | | | 1,000,000 | | | 1,006,999 |
San Francisco City & County Redevelopment Agency Tax Allocation Bonds Mission Bay North Redevelopment Series 2009C |
08-01-29 | | | 6.000 | | | | 535,000 | | | 483,223 |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 31
Portfolio of Investments (continued)
Seligman California Municipal Quality Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(b) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Special District — Tax Allocation (cont.) |
Union City Community Redevelopment Agency Tax Allocation Bonds Subordinated Lien Community Redevelopment Project Series 2011 |
12-01-12 | | | 3.000 | % | | | $555,000 | | | $564,335 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,568,361 |
|
|
State (14.5%) |
State of California Unlimited General Obligation Bonds Various Purpose Series 2006 |
03-01-16 | | | 5.000 | | | | 1,000,000 | | | 1,110,760 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2007 |
12-01-32 | | | 5.000 | | | | 500,000 | | | 467,335 |
State of California Unlimited General Obligation Bonds Various Purpose Series 2009 |
10-01-29 | | | 5.000 | | | | 500,000 | | | 486,470 |
04-01-31 | | | 5.750 | | | | 750,000 | | | 769,320 |
State of California Unlimited General Obligation Refunding Bonds Series 2007 |
08-01-14 | | | 5.000 | | | | 1,000,000 | | | 1,101,010 |
State of California Unlimited General Obligation Refunding Bonds Various Purpose Series 2008 |
04-01-38 | | | 5.000 | | | | 610,000 | | | 543,071 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,477,966 |
|
|
Water & Sewer (9.5%) |
Sacramento County Sanitation Districts Financing Authority Refunding Revenue Bonds Series 2001 (AMBAC) |
12-01-27 | | | 5.000 | | | | 2,000,000 | | | 1,975,380 |
San Diego Public Facilities Financing Authority Revenue Bonds Senior Series 2009A |
05-15-34 | | | 5.250 | | | | 1,000,000 | | | 980,260 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,955,640 |
|
|
Total Municipal Bonds |
(Cost: $29,944,919) | | $29,054,578 |
|
|
| | | | | | |
Money Market Fund (1.2%) |
| | Shares | | | Value(a) |
|
JPMorgan Tax-Free Money Market Fund, 0.000% | | | 371,483 | (c) | | $371,483 |
|
|
Total Money Market Fund |
(Cost: $371,483) | | $371,483 |
|
|
Total Investments in Securities |
(Cost: $30,316,402)(d) | | $29,426,061 |
|
|
Notes to Portfolio of Investments
| | |
(a) | | Securities are valued by using policies described in Note 2 to the financial statements. |
|
(b) | | The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue: |
| | | | |
ACA | | — | | ACA Financial Guaranty Corporation |
AGCP | | — | | Assured Guaranty Corporation |
AGM | | — | | Assured Guaranty Municipal Corporation |
AMBAC | | — | | Ambac Assurance Corporation |
BHAC | | — | | Berkshire Hathaway Assurance Corporation |
BIG | | — | | Bond Investors Guarantee |
BNY | | — | | Bank of New York |
CGIC | | — | | Capital Guaranty Insurance Company |
CIFG | | — | | IXIS Financial Guaranty |
FGIC | | — | | Financial Guaranty Insurance Company |
FHA | | — | | Federal Housing Authority |
FHLMC | | — | | Federal Home Loan Mortgage Corporation |
FNMA | | — | | Federal National Mortgage Association |
GNMA | | — | | Government National Mortgage Association |
MGIC | | — | | Mortgage Guaranty Insurance Corporation |
NPFGC | | — | | National Public Finance Guarantee Corporation |
TCRS | | — | | Transferable Custodial Receipts |
XLCA | | — | | XL Capital Assurance |
| | |
(c) | | The rate shown is the seven-day current annualized yield at March 31, 2011. |
|
(d) | | At March 31, 2011, the cost of securities for federal income tax purposes was approximately $30,316,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: |
| | | | |
Unrealized appreciation | | | $152,000 | |
Unrealized depreciation | | | (1,042,000 | ) |
| | | | |
Net unrealized depreciation | | | ($890,000 | ) |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
32 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal Quality Fund
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| | |
| • | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
|
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
|
| • | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
| | | | | | | | | | | | | | | | |
| | Fair Value at March 31, 2011 | |
| | Level 1
| | | Level 2
| | | | | | | |
| | Quoted Prices
| | | Other
| | | Level 3
| | | | |
| | in Active
| | | Significant
| | | Significant
| | | | |
| | Markets for
| | | Observable
| | | Unobservable
| | | | |
Description(a) | | Identical Assets | | | Inputs(b) | | | Inputs | | | Total | |
Bonds | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $— | | | | $29,054,578 | | | | $— | | | | $29,054,578 | |
| | | | | | | | | | | | | | | | |
Total Bonds | | | — | | | | 29,054,578 | | | | — | | | | 29,054,578 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Unaffiliated Money Market Fund(c) | | | — | | | | 371,483 | | | | — | | | | 371,483 | |
| | | | | | | | | | | | | | | | |
Total Other | | | — | | | | 371,483 | | | | — | | | | 371,483 | |
| | | | | | | | | | | | | | | | |
Total | | | $— | | | | $29,426,061 | | | | $— | | | | $29,426,061 | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | See the Portfolio of Investments for all investment classifications not indicated in the table. |
|
(b) | | There were no significant transfers between Levels 1 and 2 during the period. |
|
(c) | | Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 33
Portfolio of Investments (continued)
Seligman California Municipal Quality Fund
How to find information about the Fund’s quarterly portfolio holdings
| | |
(i) | | The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; |
|
(ii) | | The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov; |
|
(iii) | | The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and |
|
(iv) | | The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611. |
The accompanying Notes to Financial Statements are an integral part of this statement.
34 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Minnesota Municipal FundMarch 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
| | | | | | | | | | |
Municipal Bonds (95.3%) |
Issue
| | Coupon
| | | Principal
| | | |
Description(c,d) | | Rate | | | Amount | | | Value(a) |
|
|
Advanced Refunded (5.2%) |
Western Minnesota Municipal Power Agency Revenue Bonds Series 1977A Escrowed to Maturity |
01-01-16 | | | 6.375 | % | | | $2,815,000 | | | $3,189,114 |
|
|
Airport (3.4%) |
Minneapolis-St. Paul Metropolitan Airports Commission Refunding Revenue Bonds Senior Series 2009B A.M.T. |
01-01-22 | | | 5.000 | | | | 480,000 | | | 491,736 |
Minneapolis-St. Paul Metropolitan Airports Commission Revenue Bonds Senior Series 2010A |
01-01-35 | | | 5.000 | | | | 1,625,000 | | | 1,578,671 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,070,407 |
|
|
City (0.8%) |
City of Moorhead Unlimited General Obligation Bonds Flood Mitigation Series 2009B |
02-01-29 | | | 4.500 | | | | 500,000 | | | 510,570 |
|
|
College (18.5%) |
Minnesota Higher Education Facilities Authority Revenue Bonds Bethel University Sixth Series 2007R |
05-01-23 | | | 5.500 | | | | 275,000 | | | 263,970 |
Minnesota Higher Education Facilities Authority Revenue Bonds Carleton College Series 2010D |
03-01-40 | | | 5.000 | | | | 415,000 | | | 408,742 |
Minnesota Higher Education Facilities Authority Revenue Bonds College of St. Catherine Series 2002-5-N1 |
10-01-32 | | | 5.375 | | | | 1,000,000 | | | 918,280 |
Minnesota Higher Education Facilities Authority Revenue Bonds Gustavus Adolphus College Series 2010-7B |
10-01-35 | | | 4.750 | | | | 210,000 | | | 188,683 |
Minnesota Higher Education Facilities Authority Revenue Bonds Hamline University 7th Series 2010E |
10-01-29 | | | 5.000 | | | | 100,000 | | | 96,035 |
Minnesota Higher Education Facilities Authority Revenue Bonds Hamline University 7th Series 2011-K2 |
10-01-32 | | | 6.000 | | | | 200,000 | | | 200,928 |
10-01-40 | | | 6.000 | | | | 500,000 | | | 489,845 |
Minnesota Higher Education Facilities Authority Revenue Bonds St. John’s University 6th Series 2005G |
10-01-22 | | | 5.000 | | | | 3,500,000 | | | 3,615,884 |
Minnesota Higher Education Facilities Authority Revenue Bonds St. Olaf College 6th Series 2007O |
10-01-22 | | | 5.000 | | | | 3,040,000 | | | 3,160,597 |
Minnesota Higher Education Facilities Authority Revenue Bonds St. Scholastica College Series 2010H |
12-01-30 | | | 5.125 | | | | 140,000 | | | 135,360 |
12-01-35 | | | 5.250 | | | | 160,000 | | | 152,138 |
12-01-40 | | | 5.125 | | | | 75,000 | | | 68,657 |
Minnesota Higher Education Facilities Authority Revenue Bonds St. Scholastica College Series 2011-7J |
12-01-40 | | | 6.300 | | | | 450,000 | | | 454,554 |
Minnesota Higher Education Facilities Authority Revenue Bonds University of St. Thomas 6th Series 2009X |
04-01-39 | | | 5.250 | | | | 1,100,000 | | | 1,067,055 |
| | | | | | | | | | |
Total | | | | | | | | | | 11,220,728 |
|
|
County (2.0%) |
County of Anoka Unlimited General Obligation Bonds Capital Improvement Series 2008A |
02-01-23 | | | 5.000 | | | | 500,000 | | | 541,005 |
Dakota County Community Development Agency Unlimited General Obligation Bonds Series 2010A |
01-01-26 | | | 4.000 | | | | 680,000 | | | 687,990 |
| | | | | | | | | | |
Total | | | | | | | | | | 1,228,995 |
|
|
Electric (10.5%) |
Minnesota Municipal Power Agency Revenue Bonds Series 2005 |
10-01-30 | | | 5.000 | | | | 500,000 | | | 500,800 |
Minnesota Municipal Power Agency Revenue Bonds Series 2010A |
10-01-35 | | | 5.250 | | | | 1,500,000 | | | 1,405,830 |
Northern Municipal Power Agency Revenue Bonds Series 2007A (AMBAC) |
01-01-26 | | | 5.000 | | | | 1,000,000 | | | 1,005,610 |
Northern Municipal Power Agency Revenue Bonds Series 2008A |
01-01-21 | | | 5.000 | | | | 1,000,000 | | | 1,045,940 |
Southern Minnesota Municipal Power Agency Revenue Bonds Capital Appreciation Zero Coupon Series 1994A (NPFGC) |
01-01-26 | | | 5.007 | | | | 5,000,000 | (f) | | 2,396,050 |
| | | | | | | | | | |
Total | | | | | | | | | | 6,354,230 |
|
|
Health Care — Hospital (21.9%) |
City of Breckenridge Revenue Bonds Catholic Health Initiatives Series 2004A |
05-01-30 | | | 5.000 | | | | 500,000 | | | 492,725 |
City of Maple Grove Revenue Bonds Maple Grove Hospital Corp. Series 2007 |
05-01-37 | | | 5.250 | | | | 1,895,000 | | | 1,681,414 |
City of Rochester Revenue Bonds Olmsted Medical Center Series 2010 |
07-01-30 | | | 5.875 | | | | 275,000 | | | 260,574 |
City of Shakopee Revenue Bonds St. Francis Regional Medical Center Series 2004 |
09-01-25 | | | 5.100 | | | | 2,000,000 | | | 1,903,199 |
City of St. Cloud Revenue Bonds Centracare Health System Series 2010A |
05-01-30 | | | 5.125 | | | | 1,000,000 | | | 961,690 |
City of St. Louis Park Refunding Revenue Bonds Park Nicollet Health Services Series 2009 |
07-01-39 | | | 5.750 | | | | 1,500,000 | | | 1,397,175 |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 35
Portfolio of Investments (continued)
Seligman Minnesota Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(c,d) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Health Care — Hospital (cont.) |
Minneapolis & St. Paul Housing & Redevelopment Authority Revenue Bonds Children’s Health Care Facilities Series 2010A |
08-15-35 | | | 5.250 | % | | | $1,000,000 | | | $969,200 |
Minnesota Agricultural & Economic Development Board Unrefunded Revenue Bonds Evangelical Series 1997 (AMBAC) |
12-01-22 | | | 5.150 | | | | 1,105,000 | | | 1,105,000 |
St. Paul Housing & Redevelopment Authority Revenue Bonds Allina Health Systems Series 2009A-1 |
11-15-29 | | | 5.250 | | | | 1,250,000 | | | 1,241,113 |
St. Paul Housing & Redevelopment Authority Revenue Bonds Gillette Children’s Specialty Series 2009 |
02-01-27 | | | 5.000 | | | | 1,300,000 | | | 1,227,837 |
02-01-29 | | | 5.000 | | | | 525,000 | | | 488,040 |
St. Paul Housing & Redevelopment Authority Revenue Bonds HealthPartners Obligation Group Project Series 2006 |
05-15-36 | | | 5.250 | | | | 1,500,000 | | | 1,323,090 |
Staples United Hospital District Unlimited General Obligation Bonds Health Care Facilities-Lakewood Series 2004 |
12-01-34 | | | 5.000 | | | | 250,000 | | | 239,610 |
| | | | | | | | | | |
Total | | | | | | | | | | 13,290,667 |
|
|
Housing — Multi-family (0.4%) |
Austin Housing & Redevelopment Authority Refunding Revenue Bonds Chauncey & Courtyard Apartments Series 2010 |
01-01-31 | | | 5.000 | | | | 250,000 | | | 250,618 |
|
|
Housing — Single Family (3.0%) |
Minnesota Housing Finance Agency Revenue Bonds Residential Housing Finance Series 2008A |
07-01-23 | | | 4.650 | | | | 895,000 | | | 905,695 |
Minnesota Housing Finance Agency Revenue Bonds Series 2009 |
01-01-40 | | | 5.100 | | | | 975,000 | | | 944,902 |
| | | | | | | | | | |
Total | | | | | | | | | | 1,850,597 |
|
|
Lease (2.4%) |
Minnetrista Economic Development Authority Revenue Bonds Series 2009A |
02-01-28 | | | 4.500 | | | | 285,000 | | | 281,999 |
02-01-29 | | | 4.625 | | | | 200,000 | | | 199,868 |
02-01-31 | | | 4.750 | | | | 400,000 | | | 398,956 |
St. Paul Housing & Redevelopment Authority Revenue Bonds Parking Facility — RiverCenter Parking Ramp Series 2009 |
05-01-24 | | | 4.500 | | | | 580,000 | | | 592,482 |
| | | | | | | | | | |
Total | | | | | | | | | | 1,473,305 |
|
|
Miscellaneous Revenue (7.4%) |
City of Minneapolis Revenue Bonds Blake School Project Series 2010 |
09-01-21 | | | 4.000 | | | | 215,000 | | | 216,726 |
St. Paul Housing & Redevelopment Authority Refunding Revenue Bonds Parking Facilities Project Series 2010A |
08-01-35 | | | 5.000 | | | | 300,000 | | | 273,621 |
State of Minnesota Revenue Bonds Series 2000 |
06-01-30 | | | 6.000 | | | | 4,000,000 | | | 4,012,840 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,503,187 |
|
|
Sales or Use Tax (1.9%) |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 1st Subordinated Series 2010C |
08-01-41 | | | 5.250 | | | | 1,325,000 | (b) | | 1,171,751 |
|
|
School (3.5%) |
Rocori Area Schools Independent School District No. 750 Unlimited General Obligation Bonds School Building Series 2009B (School District Credit Enhancement Program) |
02-01-34 | | | 4.750 | | | | 2,100,000 | | | 2,102,583 |
|
|
Special Purpose Certificates — General Obligations (3.5%) |
Metropolitan Council Unlimited General Obligation Refunding Bonds Waste Water Series 2005B |
05-01-25 | | | 5.000 | | | | 2,000,000 | | | 2,135,760 |
|
|
Student Loan (0.7%) |
Minnesota Office of Higher Education Revenue Bonds Supplemental Student Loan Program Series 2010 |
11-01-29 | | | 5.000 | | | | 450,000 | (h) | | 436,212 |
|
|
Water & Sewer (10.2%) |
City of Rochester Unlimited General Obligation Bonds Waste Water Series 2004A |
02-01-25 | | | 5.000 | | | | 3,305,000 | | | 3,443,744 |
City of St. Paul Revenue Bonds Series 2009C |
12-01-28 | | | 4.000 | | | | 1,270,000 | | | 1,186,053 |
Minnesota Public Facilities Authority Revenue Bonds Series 2005A |
03-01-19 | | | 5.000 | | | | 1,480,000 | | | 1,597,348 |
| | | | | | | | | | |
Total | | | | | | | | | | 6,227,145 |
|
|
Total Municipal Bonds |
(Cost: $58,011,718) | | $58,015,869 |
|
|
| | | | | | | | | | |
| | | | | | | | | | |
Municipal Notes (2.5%) |
| | | | | Amount
| | | |
Issue
| | Effective
| | | Payable at
| | | |
Description(c,d,e) | | Yield | | | Maturity | | | Value(a) |
|
City of Brooklyn Center Refunding Revenue Bonds Brookdale Corp. II Project V.R.D.N. Series 2001 (U.S. Bank) |
12-01-14 | | | 0.230 | % | | | $600,000 | | | $600,000 |
City of Robbinsdale Refunding Revenue Bonds North Memorial Health Care V.R.D.N. Series 2008A-4 (Wells Fargo Bank) |
05-01-33 | | | 0.200 | | | | 500,000 | | | 500,000 |
St. Paul Port Authority Revenue Bonds Minnesota Public Radio Project V.R.D.N. 7th Series 2005 (JP Morgan Chase Bank) |
05-01-25 | | | 0.240 | | | | 400,000 | | | 400,000 |
|
|
Total Municipal Notes |
(Cost: $1,500,000) | | $1,500,000 |
|
|
| | | | | | |
Money Market Fund (0.3%) |
| | Shares | | | Value(a) |
|
JPMorgan Tax-Free Money Market Fund, 0.000% | | | 96,589 | (g) | | $96,589 |
|
|
Total Money Market Fund |
(Cost: $96,589) | | $96,589 |
|
|
Total Investments in Securities |
(Cost: $59,608,307)(i) | | $59,612,458 |
|
|
The accompanying Notes to Financial Statements are an integral part of this statement.
36 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Minnesota Municipal Fund
Notes to Portfolio of Investments
| | |
(a) | | Securities are valued by using policies described in Note 2 to the financial statements. |
|
(b) | | The Fund may invest in debt obligations issued by or on behalf of territories and possessions of the United States and sovereign nations within the borders of the United States. These securities amounted to 1.93% of net assets at March 31, 2011. |
|
(c) | | The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue: |
| | | | |
ACA | | — | | ACA Financial Guaranty Corporation |
AGCP | | — | | Assured Guaranty Corporation |
AGM | | — | | Assured Guaranty Municipal Corporation |
AMBAC | | — | | Ambac Assurance Corporation |
BHAC | | — | | Berkshire Hathaway Assurance Corporation |
BIG | | — | | Bond Investors Guarantee |
BNY | | — | | Bank of New York |
CGIC | | — | | Capital Guaranty Insurance Company |
CIFG | | — | | IXIS Financial Guaranty |
FGIC | | — | | Financial Guaranty Insurance Company |
FHA | | — | | Federal Housing Authority |
FHLMC | | — | | Federal Home Loan Mortgage Corporation |
FNMA | | — | | Federal National Mortgage Association |
GNMA | | — | | Government National Mortgage Association |
MGIC | | — | | Mortgage Guaranty Insurance Corporation |
NPFGC | | — | | National Public Finance Guarantee Corporation |
TCRS | | — | | Transferable Custodial Receipts |
XLCA | | — | | XL Capital Assurance |
| | |
(d) | | The following abbreviations may be used in the portfolio descriptions: |
| | | | |
A.M.T. | | — | | Alternative Minimum Tax – At March 31, 2011, the value of securities subject to alternative minimum tax represented 0.81% of net assets. |
B.A.N. | | — | | Bond Anticipation Note |
C.P. | | — | | Commercial Paper |
R.A.N. | | — | | Revenue Anticipation Note |
T.A.N. | | — | | Tax Anticipation Note |
T.R.A.N. | | — | | Tax & Revenue Anticipation Note |
V.R. | | — | | Variable Rate |
V.R.D.B. | | — | | Variable Rate Demand Bond |
V.R.D.N. | | — | | Variable Rate Demand Note |
| | |
(e) | | The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on March 31, 2011. |
|
(f) | | For zero coupons, the interest rate disclosed represents the annualized effective yield on the date of acquisition. |
|
(g) | | The rate shown is the seven-day current annualized yield at March 31, 2011. |
|
(h) | | Identifies issues considered to be illiquid as to their marketability (see Note 2 to the financial statements). The aggregate value of such securities at March 31, 2011 was $436,212, representing 0.72% of net assets. Information concerning such security holdings at March 31, 2011 was as follows: |
| | | | | | |
| | Acquisition
| | | |
Security | | Dates | | Cost | |
Minnesota Office of Higher Education Revenue Bonds Supplemental Student Loan Program Series 2010 5.000% 2029 | | 12-02-10 | | | $450,000 | |
| | |
(i) | | At March 31, 2011, the cost of securities for federal income tax purposes was approximately $59,608,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: |
| | | | |
Unrealized appreciation | | | $1,010,000 | |
Unrealized depreciation | | | (1,006,000 | ) |
| | | | |
Net unrealized appreciation | | | $4,000 | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 37
Portfolio of Investments (continued)
Seligman Minnesota Municipal Fund
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| | |
| • | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
|
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
|
| • | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
| | | | | | | | | | | | | | | | |
| | Fair Value at March 31, 2011 | |
| | Level 1
| | | Level 2
| | | | | | | |
| | Quoted Prices
| | | Other
| | | Level 3
| | | | |
| | in Active
| | | Significant
| | | Significant
| | | | |
| | Markets for
| | | Observable
| | | Unobservable
| | | | |
Description(a) | | Identical Assets | | | Inputs(b) | | | Inputs | | | Total | |
Bonds | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $— | | | | $58,015,869 | | | | $— | | | | $58,015,869 | |
| | | | | | | | | | | | | | | | |
Total Bonds | | | — | | | | 58,015,869 | | | | — | | | | 58,015,869 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Municipal Notes | | | — | | | | 1,500,000 | | | | — | | | | 1,500,000 | |
Unaffiliated Money Market Fund(c) | | | 96,589 | | | | — | | | | — | | | | 96,589 | |
| | | | | | | | | | | | | | | | |
Total Other | | | 96,589 | | | | 1,500,000 | | | | — | | | | 1,596,589 | |
| | | | | | | | | | | | | | | | |
Total | | | $96,589 | | | | $59,515,869 | | | | $— | | | | $59,612,458 | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | See the Portfolio of Investments for all investment classifications not indicated in the table. |
|
(b) | | There were no significant transfers between Levels 1 and 2 during the period. |
|
(c) | | Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
38 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Minnesota Municipal Fund
How to find information about the Fund’s quarterly portfolio holdings
| | |
(i) | | The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; |
|
(ii) | | The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov; |
|
(iii) | | The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and |
|
(iv) | | The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 39
Seligman New York Municipal FundMarch 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
| | | | | | | | | | |
Municipal Bonds (95.3%) |
Issue
| | Coupon
| | | Principal
| | | |
Description(c,d) | | Rate | | | Amount | | | Value(a) |
|
|
Advanced Refunded (3.1%) |
Triborough Bridge & Tunnel Authority Prerefunded Revenue Bonds General Purpose Series 1999B |
01-01-30 | | | 5.500 | % | | | $1,800,000 | | | $2,192,292 |
|
|
City (3.0%) |
City of New York Unlimited General Obligation Bonds Series 2010B |
08-01-21 | | | 5.000 | | | | 500,000 | | | 543,515 |
City of New York Unlimited General Obligation Bonds Subordinated Series 2009I-1 |
04-01-27 | | | 5.250 | | | | 1,500,000 | | | 1,552,215 |
City of New York Unrefunded Unlimited General Obligation Bonds Series 1995C |
08-15-24 | | | 7.250 | | | | 5,000 | | | 5,022 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,100,752 |
|
|
College (23.8%) |
City of Troy Revenue Bonds Rensselaer Polytechnic Series 2010A |
09-01-40 | | | 5.125 | | | | 250,000 | | | 227,613 |
Hempstead Town Local Development Corp. Revenue Bonds Molloy College Project Series 2009 |
07-01-39 | | | 5.750 | | | | 1,000,000 | | | 960,820 |
Nassau County Industrial Development Agency Refunding Revenue Bonds New York Institute of Technology Project Series 2000A |
03-01-26 | | | 4.750 | | | | 725,000 | | | 682,073 |
New York State Dormitory Authority Revenue Bonds Brooklyn Law School Series 2003B (XLCA) |
07-01-30 | | | 5.125 | | | | 1,000,000 | | | 981,330 |
New York State Dormitory Authority Revenue Bonds Cornell University Series 2009A |
07-01-27 | | | 5.000 | | | | 1,000,000 | | | 1,048,830 |
New York State Dormitory Authority Revenue Bonds Manhattan Marymount College Series 2009 |
07-01-29 | | | 5.250 | | | | 1,000,000 | | | 958,020 |
New York State Dormitory Authority Revenue Bonds Mount Sinai School of Medicine Series 2009 |
07-01-39 | | | 5.125 | | | | 1,000,000 | | | 913,130 |
New York State Dormitory Authority Revenue Bonds New York University Series 2007A (AMBAC) |
07-01-24 | | | 5.000 | | | | 2,000,000 | | | 2,087,579 |
New York State Dormitory Authority Revenue Bonds Pratt Institute Series 2009C |
07-01-39 | | | 5.125 | | | | 1,000,000 | | | 943,720 |
New York State Dormitory Authority Revenue Bonds Rockefeller University Series 2009A |
07-01-27 | | | 4.750 | | | | 600,000 | | | 611,448 |
New York State Dormitory Authority Revenue Bonds St. John’s University Series 2007A (NPFGC) |
07-01-32 | | | 5.250 | | | | 1,000,000 | | | 976,150 |
New York State Dormitory Authority Revenue Bonds St. John’s University Series 2007C (NPFGC) |
07-01-26 | | | 5.250 | | | | 1,205,000 | | | 1,249,838 |
New York State Dormitory Authority Revenue Bonds The New School Series 2010 |
07-01-40 | | | 5.500 | | | | 500,000 | | | 481,670 |
New York State Dormitory Authority Revenue Bonds University of Rochester Series 2009A |
07-01-39 | | | 5.125 | | | | 1,350,000 | | | 1,311,632 |
New York State Dormitory Authority Revenue Bonds Yeshiva University Series 2001 (AMBAC) |
07-01-30 | | | 5.000 | | | | 1,250,000 | | | 1,233,175 |
Rensselaer County Industrial Development Agency Revenue Bonds Polytechnic Institute Dorm Project Series 1999A |
08-01-29 | | | 5.125 | | | | 1,000,000 | | | 952,520 |
Yonkers Industrial Development Agency Revenue Bonds Sarah Lawrence College Project Series 2001A |
06-01-29 | | | 6.000 | | | | 1,000,000 | | | 1,029,800 |
| | | | | | | | | | |
Total | | | | | | | | | | 16,649,348 |
|
|
County (2.8%) |
County of Suffolk Unlimited General Obligation Public Improvement Bonds Series 2009A |
05-15-26 | | | 4.250 | | | | 2,000,000 | | | 2,004,000 |
|
|
Health Care — Hospital (10.9%) |
Monroe County Industrial Development Corp. Revenue Bonds Unity Hospital Rochester Project Series 2010 (FHA) |
08-15-35 | | | 5.750 | | | | 800,000 | | | 850,336 |
New York State Dormitory Authority Revenue Bonds Mental Health Services Facilities Improvement Series 2007C (AGM) |
08-15-26 | | | 5.000 | | | | 2,000,000 | | | 2,036,539 |
New York State Dormitory Authority Revenue Bonds Mount Sinai Hospital Series 2010A |
07-01-26 | | | 5.000 | | | | 1,050,000 | | | 1,039,427 |
New York State Dormitory Authority Revenue Bonds New York University Hospital Center Series 2011A |
07-01-31 | | | 5.750 | | | | 400,000 | | | 394,316 |
New York State Dormitory Authority Revenue Bonds North Shore Long Island Jewish Series 2009A |
05-01-37 | | | 5.500 | | | | 1,250,000 | | | 1,188,563 |
New York State Dormitory Authority Revenue Bonds Vassar Brothers Hospital Series 1997 (AGM) |
07-01-25 | | | 5.375 | | | | 1,500,000 | | | 1,504,140 |
Westchester County Healthcare Corp. Revenue Bonds Senior Lien Series 2010C-2 |
11-01-37 | | | 6.125 | | | | 700,000 | | | 679,861 |
| | | | | | | | | | |
Total | | | | | | | | | | 7,693,182 |
|
|
| | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
40 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman New York Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(c,d) | | Rate | | | Amount | | | Value(a) |
|
Health Care — Life Care Center (0.5%) |
Suffolk County Economic Development Corp. Refunding Revenue Bonds Peconic Landing Southold Series 2010 |
12-01-40 | | | 6.000 | % | | | $400,000 | | | $366,956 |
|
|
Housing — Multi-family (5.7%) |
Amherst Development Corp. Revenue Bonds UBF Facility Student Housing Corp. Series 2010A (AGM) |
10-01-45 | | | 4.625 | | | | 1,500,000 | | | 1,218,510 |
Housing Development Corp. Revenue Bonds Series 2009M |
11-01-45 | | | 5.150 | | | | 750,000 | | | 712,875 |
New York State Housing Finance Agency Revenue Bonds Phillips Village Project Series 1994A (FHA) A.M.T. |
08-15-17 | | | 7.750 | | | | 2,060,000 | | | 2,081,836 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,013,221 |
|
|
Housing — Single Family (0.9%) |
New York Mortgage Agency Revenue Bonds Homeowners Mortgage Series 1998-69 A.M.T. |
10-01-28 | | | 5.500 | | | | 425,000 | | | 424,987 |
New York Mortgage Agency Revenue Bonds Series 1999-82 A.M.T. |
04-01-30 | | | 5.650 | | | | 240,000 | | | 240,005 |
| | | | | | | | | | |
Total | | | | | | | | | | 664,992 |
|
|
Industrial-Pollution — IDR (2.9%) |
New York State Energy Research & Development Authority Revenue Bonds Brooklyn Union Gas Co. Project Series 1996 (NPFGC) |
01-01-21 | | | 5.500 | | | | 2,000,000 | | | 2,006,480 |
|
|
Industrial-Pollution — PCR (3.0%) |
Onondaga County Industrial Development Agency Revenue Bonds Bristol-Meyers Squibb Co. Project Series 1994 A.M.T. |
03-01-24 | | | 5.750 | | | | 2,000,000 | | | 2,136,080 |
|
|
Lease (2.9%) |
New York Local Government Assistance Corp. Refunding Revenue Bonds Senior Lien Series 2007A |
04-01-19 | | | 5.000 | | | | 1,000,000 | | | 1,109,250 |
New York State Dormitory Authority Revenue Bonds School Districts Financing Program Series 2009C |
10-01-36 | | | 5.125 | | | | 1,000,000 | | | 964,840 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,074,090 |
|
|
Miscellaneous Revenue (6.6%) |
Metropolitan Transportation Authority Refunding Revenue Bonds Series 2002A |
01-01-29 | | | 5.125 | | | | 2,950,000 | | | 2,941,239 |
Metropolitan Transportation Authority Revenue Bonds Series 2010D |
11-15-34 | | | 5.000 | | | | 450,000 | | | 418,734 |
New York City Trust for Cultural Resources Refunding Revenue Bonds Museum of Modern Art Series 2010-1A |
10-01-17 | | | 5.000 | | | | 250,000 | | | 281,925 |
New York City Trust for Cultural Resources Revenue Bonds Museum of Modern Art Series 2001D (AMBAC) |
07-01-31 | | | 5.125 | | | | 1,000,000 | | | 986,900 |
| | | | | | | | | | |
Total | | | | | | | | | | 4,628,798 |
|
|
Port District (3.6%) |
Port Authority of New York & New Jersey Revenue Bonds Consolidated 93rd Series 1994 |
06-01-94 | | | 6.125 | | | | 2,250,000 | | | 2,528,933 |
|
|
Sales or Use Tax (4.6%) |
Nassau County Interim Finance Authority Revenue Bonds Sales Tax Secured Series 2009A |
11-15-24 | | | 5.000 | | | | 250,000 | | | 268,868 |
New York City Transitional Finance Authority Unrefunded Revenue Bonds Future Tax Secured Series 2001B |
05-01-30 | | | 5.000 | | | | 1,500,000 | | | 1,504,680 |
Puerto Rico Sales Tax Financing Corp. Revenue Bonds 1st Subordinated Series 2010C |
08-01-41 | | | 5.250 | | | | 1,650,000 | (b) | | 1,459,161 |
| | | | | | | | | | |
Total | | | | | | | | | | 3,232,709 |
|
|
Special District — Special Tax (12.1%) |
Metropolitan Transportation Authority Revenue Bonds Series 2009B |
11-15-34 | | | 5.000 | | | | 2,000,000 | | | 1,930,019 |
New York City Transitional Finance Authority Revenue Bonds Fiscal 2009 Series 2009S-3 |
01-15-22 | | | 5.000 | | | | 1,000,000 | | | 1,058,610 |
New York City Transitional Finance Authority Subordinated Revenue Bonds Future Tax Secured Series 2007B |
11-01-26 | | | 5.000 | | | | 1,035,000 | | | 1,075,065 |
New York State Dormitory Authority Revenue Bonds Education Series 2009A |
03-15-28 | | | 5.000 | | | | 1,545,000 | | | 1,596,155 |
New York State Dormitory Authority Revenue Bonds Series 2009A |
02-15-34 | | | 5.000 | | | | 1,400,000 | | | 1,381,142 |
New York State Urban Development Corp. Revenue Bonds State Personal Income Tax Series 2009B-1 |
03-15-36 | | | 5.000 | | | | 1,500,000 | | | 1,466,490 |
| | | | | | | | | | |
Total | | | | | | | | | | 8,507,481 |
|
|
Toll Road (4.1%) |
New York State Thruway Authority Revenue Bonds Series 2005A (NPFGC) |
04-01-25 | | | 5.000 | | | | 500,000 | | | 510,620 |
New York State Thruway Authority Revenue Bonds Series 2005F (AMBAC) |
01-01-25 | | | 5.000 | | | | 2,000,000 | | | 2,003,240 |
Triborough Bridge & Tunnel Authority Unrefunded Revenue Bonds General Purpose Series 2001A |
01-01-32 | | | 5.000 | | | | 380,000 | | | 380,080 |
| | | | | | | | | | |
Total | | | | | | | | | | 2,893,940 |
|
|
Water & Sewer (4.8%) |
New York City Municipal Water Finance Authority Refunding Revenue Bonds Series 2006C |
06-15-33 | | | 4.750 | | | | 1,440,000 | | | 1,377,058 |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 41
Portfolio of Investments (continued)
Seligman New York Municipal Fund
| | | | | | | | | | |
Municipal Bonds (continued) |
Issue
| | Coupon
| | | Principal
| | | |
Description(c,d) | | Rate | | | Amount | | | Value(a) |
|
| | | | | | | | | | |
Water & Sewer (cont.) |
New York City Municipal Water Finance Authority Revenue Bonds Series 2008CC |
06-15-34 | | | 5.000 | % | | | $2,000,000 | | | $1,972,820 |
| | | | | | | | | | |
Total | | | | | | | | | | 3,349,878 |
|
|
Total Municipal Bonds |
(Cost: $66,788,988) | | $67,043,132 |
|
|
| | | | | | | | | | |
| | | | | | | | | | |
Municipal Notes (2.3%) |
| | | | | Amount
| | | |
Issue
| | Effective
| | | Payable at
| | | |
Description(c,d,e) | | Yield | | | Maturity | | | Value(a) |
|
City of New York Unlimited General Obligation Bonds V.R.D.N. Series 1993 (JP Morgan Chase Bank) |
08-01-17 | | | 0.180 | % | | | $1,000,000 | | | $1,000,000 |
08-01-20 | | | 0.180 | | | | 200,000 | | | 200,000 |
New York State Dormitory Authority Revenue Bonds University of Rochester V.R.D.N. Series 2003 (HSBC Bank USA) |
07-01-33 | | | 0.180 | | | | 400,000 | | | 400,000 |
|
|
Total Municipal Notes |
(Cost: $1,600,000) | | $1,600,000 |
|
|
| | | | | | |
Money Market Fund (1.5%) |
| | Shares | | | Value(a) |
|
JPMorgan Tax-Free Money Market Fund, 0.000% | | | 1,059,665 | (f) | | $1,059,665 |
|
|
Total Money Market Fund |
(Cost: $1,059,665) | | $1,059,665 |
|
|
Total Investments in Securities |
(Cost: $69,448,653)(g) | | $69,702,797 |
|
|
Notes to Portfolio of Investments
| | |
(a) | | Securities are valued by using policies described in Note 2 to the financial statements. |
|
(b) | | The Fund may invest in debt obligations issued by or on behalf of territories and possessions of the United States and sovereign nations within the borders of the United States. These securities amounted to 2.07% of net assets at March 31, 2011. |
|
(c) | | The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue: |
| | | | |
ACA | | — | | ACA Financial Guaranty Corporation |
AGCP | | — | | Assured Guaranty Corporation |
AGM | | — | | Assured Guaranty Municipal Corporation |
AMBAC | | — | | Ambac Assurance Corporation |
BHAC | | — | | Berkshire Hathaway Assurance Corporation |
BIG | | — | | Bond Investors Guarantee |
BNY | | — | | Bank of New York |
CGIC | | — | | Capital Guaranty Insurance Company |
CIFG | | — | | IXIS Financial Guaranty |
FGIC | | — | | Financial Guaranty Insurance Company |
FHA | | — | | Federal Housing Authority |
FHLMC | | — | | Federal Home Loan Mortgage Corporation |
FNMA | | — | | Federal National Mortgage Association |
GNMA | | — | | Government National Mortgage Association |
MGIC | | — | | Mortgage Guaranty Insurance Corporation |
NPFGC | | — | | National Public Finance Guarantee Corporation |
TCRS | | — | | Transferable Custodial Receipts |
XLCA | | — | | XL Capital Assurance |
| | |
(d) | | The following abbreviations may be used in the portfolio descriptions: |
| | | | |
A.M.T. | | — | | Alternative Minimum Tax – At March 31, 2011, the value of securities subject to alternative minimum tax represented 6.94% of net assets. |
B.A.N. | | — | | Bond Anticipation Note |
C.P. | | — | | Commercial Paper |
R.A.N. | | — | | Revenue Anticipation Note |
T.A.N. | | — | | Tax Anticipation Note |
T.R.A.N. | | — | | Tax & Revenue Anticipation Note |
V.R. | | — | | Variable Rate |
V.R.D.B. | | — | | Variable Rate Demand Bond |
V.R.D.N. | | — | | Variable Rate Demand Note |
| | |
(e) | | The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on March 31, 2011. |
|
(f) | | The rate shown is the seven-day current annualized yield at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
42 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman New York Municipal Fund
Notes to Portfolio of Investments (continued)
| | |
(g) | | At March 31, 2011, the cost of securities for federal income tax purposes was approximately $69,449,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: |
| | | | |
Unrealized appreciation | | | $1,465,000 | |
Unrealized depreciation | | | (1,211,000 | ) |
| | | | |
Net unrealized appreciation | | | $254,000 | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 43
Portfolio of Investments (continued)
Seligman New York Municipal Fund
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| | |
| • | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
|
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
|
| • | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
| | | | | | | | | | | | | | | | |
| | Fair Value at March 31, 2011 | |
| | Level 1
| | | Level 2
| | | | | | | |
| | Quoted Prices
| | | Other
| | | Level 3
| | | | |
| | in Active
| | | Significant
| | | Significant
| | | | |
| | Markets for
| | | Observable
| | | Unobservable
| | | | |
Description(a) | | Identical Assets | | | Inputs(b) | | | Inputs | | | Total | |
Bonds | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $— | | | | $67,043,132 | | | | $— | | | | $67,043,132 | |
| | | | | | | | | | | | | | | | |
Total Bonds | | | — | | | | 67,043,132 | | | | — | | | | 67,043,132 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Municipal Notes | | | — | | | | 1,600,000 | | | | — | | | | 1,600,000 | |
Unaffiliated Money Market Fund(c) | | | 1,059,665 | | | | — | | | | — | | | | 1,059,665 | |
| | | | | | | | | | | | | | | | |
Total Other | | | 1,059,665 | | | | 1,600,000 | | | | — | | | | 2,659,665 | |
| | | | | | | | | | | | | | | | |
Total | | | $1,059,665 | | | | $68,643,132 | | | | $— | | | | $69,702,797 | |
| | | | | | | | | | | | | | | | |
| | |
(a) | | See the Portfolio of Investments for all investment classifications not indicated in the table. |
|
(b) | | There were no significant transfers between Levels 1 and 2 during the period. |
|
(c) | | Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011. |
The accompanying Notes to Financial Statements are an integral part of this statement.
44 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman New York Municipal Fund
Notes to Portfolio of Investments (continued)
How to find information about the Fund’s quarterly portfolio holdings
| | |
(i) | | The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; |
|
(ii) | | The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov; |
|
(iii) | | The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and |
|
(iv) | | The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 45
Statements of Assets and Liabilities
| | | | | | | | | | | | |
| | | | | Seligman
| | | Seligman
| |
| | Seligman
| | | California Municipal
| | | California Municipal
| |
| | National Municipal
| | | High-Yield
| | | Quality
| |
March 31, 2011 (Unaudited) | | Fund | | | Fund | | | Fund | |
Assets |
Investments in securities, at value (identified cost $539,799,165, $27,108,088 and $29,944,919) | | $ | 532,605,894 | | | $ | 25,610,470 | | | $ | 29,054,578 | |
Money market fund (identified cost $663,378, $51,674 and $371,483) | | | 663,378 | | | | 51,674 | | | | 371,483 | |
| | | | | | | | | | | | |
Total investments in securities (identified cost $540,462,543, $27,159,762 and $30,316,402) | | | 533,269,272 | | | | 25,662,144 | | | | 29,426,061 | |
Receivable from Investment Manager | | | 3,008 | | | | 349 | | | | 319 | |
Capital shares receivable | | | 1,359,115 | | | | 123,602 | | | | 74,175 | |
Accrued interest receivable | | | 7,825,841 | | | | 324,966 | | | | 498,599 | |
Receivable for investment securities sold | | | 360,787 | | | | 1,596,790 | | | | 1,209,204 | |
| | | | | | | | | | | | |
Total assets | | | 542,818,023 | | | | 27,707,851 | | | | 31,208,358 | |
| | | | | | | | | | | | |
Liabilities |
Dividends payable to shareholders | | | 1,937,757 | | | | 106,296 | | | | 106,198 | |
Capital shares payable | | | 881,627 | | | | 11,526 | | | | 61,546 | |
Accrued investment management services fees | | | 6,056 | | | | 308 | | | | 348 | |
Accrued distribution fees | | | 4,259 | | | | 290 | | | | 259 | |
Accrued transfer agency fees | | | 153,918 | | | | 8,346 | | | | 10,150 | |
Accrued administrative services fees | | | 1,029 | | | | 53 | | | | 59 | |
Other accrued expenses | | | 723,573 | | | | 62,270 | | | | 69,737 | |
| | | | | | | | | | | | |
Total liabilities | | | 3,708,219 | | | | 189,089 | | | | 248,297 | |
| | | | | | | | | | | | |
Net assets applicable to outstanding shares | | $ | 539,109,804 | | | $ | 27,518,762 | | | $ | 30,960,061 | |
| | | | | | | | | | | | |
Represented by | | | | | | | | | | | | |
Shares of beneficial interest/capital stock — $.001 par value | | $ | 73,111 | | | $ | 4,609 | | | $ | 5,149 | |
Additional paid-in capital | | | 550,206,542 | | | | 29,177,828 | | | | 32,063,396 | |
Undistributed net investment income | | | 139,765 | | | | 33,711 | | | | 35,251 | |
Accumulated net realized gain (loss) | | | (4,116,343 | ) | | | (199,768 | ) | | | (253,394 | ) |
Unrealized appreciation (depreciation) on investments | | | (7,193,271 | ) | | | (1,497,618 | ) | | | (890,341 | ) |
| | | | | | | | | | | | |
Total — representing net assets applicable to outstanding shares | | $ | 539,109,804 | | | $ | 27,518,762 | | | $ | 30,960,061 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net assets applicable to outstanding shares: | | Class A | | $ | 511,515,560 | | | $ | 22,522,632 | | | $ | 28,679,957 | |
| | Class C | | $ | 27,594,244 | | | $ | 4,996,130 | | | $ | 2,280,104 | |
Outstanding shares of beneficial interest/capital stock: | | Class A | | | 69,386,225 | | | | 3,773,345 | | | | 4,768,443 | |
| | Class C | | | 3,725,212 | | | | 836,027 | | | | 380,774 | |
Net asset value per share: | | Class A(1) | | $ | 7.37 | | | $ | 5.97 | | | $ | 6.01 | |
| | Class C | | $ | 7.41 | | | $ | 5.98 | | | $ | 5.99 | |
| | | | | | | | | | | | | | |
| | |
(1) | | The maximum offering price per share for Class A for Seligman National Municipal Fund, Seligman California Municipal High-Yield Fund and Seligman California Municipal Quality Fund is $7.74, $6.27 and $6.31, respectively. The offering price is calculated by dividing the net asset value by 1.0 minus the maximum sales charge of 4.75%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
46 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
| | | | | | | | | | | | |
| | | | | Seligman
| | | Seligman
| |
| | | | | Minnesota Municipal
| | | New York Municipal
| |
March 31, 2011 (Unaudited) | | | | | Fund | | | Fund | |
Assets |
Investments in securities, at value (identified cost $59,511,718 and $68,388,988) | | | | | | $ | 59,515,869 | | | $ | 68,643,132 | |
Money market fund (identified cost $96,589 and $1,059,665) | | | | | | | 96,589 | | | | 1,059,665 | |
| | | | | | | | | | | | |
Total investments in securities (identified cost $59,608,307 and $69,448,653) | | | | | | | 59,612,458 | | | | 69,702,797 | |
Receivable from Investment Manager | | | | | | | 514 | | | | 539 | |
Capital shares receivable | | | | | | | 178,420 | | | | 171,031 | |
Accrued interest receivable | | | | | | | 864,189 | | | | 931,203 | |
Receivable for investment securities sold | | | | | | | 609,232 | | | | — | |
| | | | | | | | | | | | |
Total assets | | | | | | | 61,264,813 | | | | 70,805,570 | |
| | | | | | | | | | | | |
Liabilities |
Dividends payable to shareholders | | | | | | | 209,170 | | | | 245,568 | |
Capital shares payable | | | | | | | 88,227 | | | | 71,725 | |
Accrued investment management services fees | | | | | | | 682 | | | | 790 | |
Accrued distribution fees | | | | | | | 450 | | | | 620 | |
Accrued transfer agency fees | | | | | | | 15,308 | | | | 13,910 | |
Accrued administrative services fees | | | | | | | 117 | | | | 135 | |
Other accrued expenses | | | | | | | 92,954 | | | | 104,470 | |
| | | | | | | | | | | | |
Total liabilities | | | | | | | 406,908 | | | | 437,218 | |
| | | | | | | | | | | | |
Net assets applicable to outstanding shares | | | | | | $ | 60,857,905 | | | $ | 70,368,352 | |
| | | | | | | | | | | | |
Represented by | | | | | | | | | | | | |
Shares of beneficial interest/capital stock — $.001 par value | | | | | | $ | 8,378 | | | $ | 9,183 | |
Additional paid-in capital | | | | | | | 60,705,086 | | | | 70,235,388 | |
Undistributed (excess of distributions over) net investment income | | | | | | | 23,617 | | | | (1,984 | ) |
Accumulated net realized gain (loss) | | | | | | | 116,673 | | | | (128,379 | ) |
Unrealized appreciation (depreciation) on investments | | | | | | | 4,151 | | | | 254,144 | |
| | | | | | | | | | | | |
Total — representing net assets applicable to outstanding shares | | | | | | $ | 60,857,905 | | | $ | 70,368,352 | |
| | | | | | | | | | | | |
| | | | | | | | | | |
Net assets applicable to outstanding shares: | | Class A | | $ | 59,195,231 | | | $ | 63,639,732 | |
| | Class C | | $ | 1,662,674 | | | $ | 6,728,620 | |
Outstanding shares of beneficial interest/capital stock: | | Class A | | | 8,150,073 | | | | 8,306,631 | |
| | Class C | | | 228,385 | | | | 876,519 | |
Net asset value per share: | | Class A(1) | | $ | 7.26 | | | $ | 7.66 | |
| | Class C | | $ | 7.28 | | | $ | 7.68 | |
| | | | | | | | | | |
| | |
(1) | | The maximum offering price per share for Class A for Seligman Minnesota Municipal Fund and Seligman New York Municipal Fund is $7.62 and $8.04, respectively. The offering price is calculated by dividing the net asset value by 1.0 minus the maximum sales charge of 4.75%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 47
| | | | | | | | | | | | |
| | | | | Seligman
| | | Seligman
| |
| | Seligman
| | | California Municipal
| | | California Municipal
| |
| | National Municipal
| | | High-Yield
| | | Quality
| |
Six months ended March 31, 2011 (Unaudited) | | Fund | | | Fund | | | Fund | |
Investment income |
Income: | | | | | | | | | | | | |
Interest | | $ | 15,007,422 | | | $ | 822,286 | | | $ | 861,393 | |
Income distributions from money market fund | | | 454 | | | | 101 | | | | 171 | |
| | | | | | | | | | | | |
Total income | | | 15,007,876 | | | | 822,387 | | | | 861,564 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment management services fees | | | 1,200,630 | | | | 62,531 | | | | 70,325 | |
Distribution fees | | | | | | | | | | | | |
Class A | | | 694,552 | | | | 31,460 | | | | 39,530 | |
Class C | | | 150,159 | | | | 26,673 | | | | 13,404 | |
Transfer agency fees | | | | | | | | | | | | |
Class A | | | 239,538 | | | | 10,182 | | | | 13,342 | |
Class C | | | 13,280 | | | | 2,078 | | | | 1,203 | |
Administrative services fees | | | 202,809 | | | | 10,676 | | | | 12,007 | |
Compensation of board members | | | 6,508 | | | | 341 | | | | 383 | |
Custodian fees | | | 6,150 | | | | 3,000 | | | | 2,140 | |
Printing and postage | | | 33,030 | | | | 7,901 | | | | 8,713 | |
Registration fees | | | 29,508 | | | | 18,430 | | | | 20,025 | |
Professional fees | | | 2,630 | | | | 11,120 | | | | 10,997 | |
SDC lease expense | | | 198,073 | | | | 9,832 | | | | 11,752 | |
Other | | | 69,201 | | | | 2,823 | | | | 2,556 | |
| | | | | | | | | | | | |
Total expenses | | | 2,846,068 | | | | 197,047 | | | | 206,377 | |
Expenses waived/reimbursed by the Investment Manager and its affiliates | | | (359,371 | ) | | | (56,644 | ) | | | (60,820 | ) |
| | | | | | | | | | | | |
Total net expenses | | | 2,486,697 | | | | 140,403 | | | | 145,557 | |
| | | | | | | | | | | | |
Investment income (loss) — net | | | 12,521,179 | | | | 681,984 | | | | 716,007 | |
| | | | | | | | | | | | |
Realized and unrealized gain (loss) — net |
Net realized gain (loss) on: | | | | | | | | | | | | |
Security transactions | | | (1,483,746 | ) | | | (76,292 | ) | | | (121,630 | ) |
Futures contracts | | | (507,864 | ) | | | (5,610 | ) | | | (5,941 | ) |
| | | | | | | | | | | | |
Net realized gain (loss) on investments | | | (1,991,610 | ) | | | (81,902 | ) | | | (127,571 | ) |
Net change in unrealized appreciation (depreciation) on investments | | | (45,991,624 | ) | | | (3,215,854 | ) | | | (3,129,605 | ) |
| | | | | | | | | | | | |
Net gain (loss) on investments | | | (47,983,234 | ) | | | (3,297,756 | ) | | | (3,257,176 | ) |
| | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | (35,462,055 | ) | | $ | (2,615,772 | ) | | $ | (2,541,169 | ) |
| | | | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
48 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
| | | | | | | | |
| | Seligman
| | | Seligman
| |
| | Minnesota Municipal
| | | New York Municipal
| |
Six months ended March 31, 2011 (Unaudited) | | Fund | | | Fund | |
Investment income |
Income: | | | | | | | | |
Interest | | $ | 1,531,441 | | | $ | 1,848,728 | |
Income distributions from money market fund | | | 146 | | | | 145 | |
| | | | | | | | |
Total income | | | 1,531,587 | | | | 1,848,873 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment management services fees | | | 130,682 | | | | 154,796 | |
Distribution fees | | | | | | | | |
Class A | | | 77,589 | | | | 85,060 | |
Class C | | | 8,382 | | | | 37,313 | |
Transfer agency fees | | | | | | | | |
Class A | | | 24,977 | | | | 20,281 | |
Class C | | | 625 | | | | 2,275 | |
Administrative services fees | | | 22,312 | | | | 26,429 | |
Compensation of board members | | | 702 | | | | 840 | |
Custodian fees | | | 3,600 | | | | 3,600 | |
Printing and postage | | | 9,927 | | | | 9,789 | |
Registration fees | | | 17,272 | | | | 15,726 | |
Professional fees | | | 11,839 | | | | 11,902 | |
SDC lease expense | | | 19,541 | | | | 22,960 | |
Other | | | 2,585 | | | | 4,964 | |
| | | | | | | | |
Total expenses | | | 330,033 | | | | 395,935 | |
Expenses waived/reimbursed by the Investment Manager and its affiliates | | | (71,995 | ) | | | (69,685 | ) |
| | | | | | | | |
Total net expenses | | | 258,038 | | | | 326,250 | |
| | | | | | | | |
Investment income (loss) — net | | | 1,273,549 | | | | 1,522,623 | |
| | | | | | | | |
Realized and unrealized gain (loss) — net |
Net realized gain (loss) on: | | | | | | | | |
Security transactions | | | 321,620 | | | | 233,179 | |
Futures contracts | | | (7,778 | ) | | | (10,617 | ) |
| | | | | | | | |
Net realized gain (loss) on investments | | | 313,842 | | | | 222,562 | |
Net change in unrealized appreciation (depreciation) on investments | | | (4,194,438 | ) | | | (5,840,827 | ) |
| | | | | | | | |
Net gain (loss) on investments | | | (3,880,596 | ) | | | (5,618,265 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | (2,607,047 | ) | | $ | (4,095,642 | ) |
| | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 49
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | Seligman
| | | Seligman
| |
| | National Municipal Fund | | | California Municipal High-Yield Fund | |
| | Six months ended
| | | Year ended
| | | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | | | March 31, 2011 | | | Sept. 30, 2010 | |
| | (Unaudited) | | | | | | (Unaudited) | | | | |
Operations and distributions |
Investment income (loss) — net | | $ | 12,521,179 | | | $ | 27,206,648 | | | $ | 681,984 | | | $ | 1,498,860 | |
Net realized gain (loss) on investments | | | (1,991,610 | ) | | | 7,389,825 | | | | (81,902 | ) | | | 76,282 | |
Net change in unrealized appreciation (depreciation) on investments | | | (45,991,624 | ) | | | (844,247 | ) | | | (3,215,854 | ) | | | 184,776 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (35,462,055 | ) | | | 33,752,226 | | | | (2,615,772 | ) | | | 1,759,918 | |
| | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | |
Class A | | | (11,956,193 | ) | | | (26,487,332 | ) | | | (563,638 | ) | | | (1,365,491 | ) |
Class C | | | (533,805 | ) | | | (1,223,738 | ) | | | (99,755 | ) | | | (236,383 | ) |
Net realized gain | | | | | | | | | | | | | | | | |
Class A | | | (4,432,054 | ) | | | (13,491,860 | ) | | | (161,738 | ) | | | (371,289 | ) |
Class C | | | (238,571 | ) | | | (748,905 | ) | | | (33,607 | ) | | | (76,734 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (17,160,623 | ) | | | (41,951,835 | ) | | | (858,738 | ) | | | (2,049,897 | ) |
| | | | | | | | | | | | | | | | |
Share transactions |
Proceeds from sales | | | | | | | | | | | | | | | | |
Class A shares | | | 4,867,373 | | | | 28,721,510 | | | | 848,092 | | | | 1,640,431 | |
Class C shares | | | 831,404 | | | | 3,100,126 | | | | 250,667 | | | | 698,473 | |
Reinvestment of distributions at net asset value | | | | | | | | | | | | | | | | |
Class A shares | | | 11,283,023 | | | | 26,419,280 | | | | 473,426 | | | | 1,099,632 | |
Class C shares | | | 513,666 | | | | 1,286,631 | | | | 84,985 | | | | 190,423 | |
Payments for redemptions | | | | | | | | | | | | | | | | |
Class A shares | | | (67,533,860 | ) | | | (100,348,448 | ) | | | (4,663,083 | ) | | | (4,893,610 | ) |
Class C shares | | | (4,533,043 | ) | | | (7,123,720 | ) | | | (491,977 | ) | | | (1,259,027 | ) |
Redemption fees (Note 6) | | | — | | | | 15,079 | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets from share transactions | | | (54,571,437 | ) | | | (47,929,542 | ) | | | (3,497,890 | ) | | | (2,523,678 | ) |
| | | | | | | | | | | | | | | | |
Proceeds from regulatory settlement (Note 10) | | | — | | | | 20,581 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets | | | (107,194,115 | ) | | | (56,108,570 | ) | | | (6,972,400 | ) | | | (2,813,657 | ) |
Net assets at beginning of period | | | 646,303,919 | | | | 702,412,489 | | | | 34,491,162 | | | | 37,304,819 | |
| | | | | | | | | | | | | | | | |
Net assets at end of period | | $ | 539,109,804 | | | $ | 646,303,919 | | | $ | 27,518,762 | | | $ | 34,491,162 | |
| | | | | | | | | | | | | | | | |
Undistributed net investment income | | $ | 139,765 | | | $ | 108,584 | | | $ | 33,711 | | | $ | 15,120 | |
| | | | | | | | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
50 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
| | | | | | | | | | | | | | | | |
| | Seligman
| | | Seligman
| |
| | California Municipal Quality Fund | | | Minnesota Municipal Fund | |
| | Six months ended
| | | Year ended
| | | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | | | March 31, 2011 | | | Sept. 30, 2010 | |
| | (Unaudited) | | | | | | (Unaudited) | | | | |
Operations and distributions |
Investment income (loss) — net | | $ | 716,007 | | | $ | 1,588,270 | | | $ | 1,273,549 | | | $ | 2,598,315 | |
Net realized gain (loss) on investments | | | (127,571 | ) | | | 88,486 | | | | 313,842 | | | | 815,146 | |
Net change in unrealized appreciation (depreciation) on investments | | | (3,129,605 | ) | | | (57,850 | ) | | | (4,194,438 | ) | | | 95,754 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (2,541,169 | ) | | | 1,618,906 | | | | (2,607,047 | ) | | | 3,509,215 | |
| | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | |
Class A | | | (651,312 | ) | | | (1,753,208 | ) | | | (1,239,220 | ) | | | (2,636,350 | ) |
Class C | | | (45,223 | ) | | | (135,948 | ) | | | (27,231 | ) | | | (46,006 | ) |
Net realized gain | | | | | | | | | | | | | | | | |
Class A | | | (197,343 | ) | | | (271,973 | ) | | | (817,163 | ) | | | (795,681 | ) |
Class C | | | (16,925 | ) | | | (24,518 | ) | | | (20,869 | ) | | | (15,898 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (910,803 | ) | | | (2,185,647 | ) | | | (2,104,483 | ) | | | (3,493,935 | ) |
| | | | | | | | | | | | | | | | |
Share transactions |
Proceeds from sales | | | | | | | | | | | | | | | | |
Class A shares | | | 277,182 | | | | 2,840,834 | | | | 854,390 | | | | 3,066,720 | |
Class C shares | | | 66,947 | | | | 285,537 | | | | 340,443 | | | | 560,398 | |
Reinvestment of distributions at net asset value | | | | | | | | | | | | | | | | |
Class A shares | | | 596,923 | | | | 1,309,779 | | | | 1,718,012 | | | | 2,499,305 | |
Class C shares | | | 15,168 | | | | 27,469 | | | | 36,706 | | | | 43,983 | |
Payments for redemptions | | | | | | | | | | | | | | | | |
Class A shares | | | (4,857,955 | ) | | | (8,098,135 | ) | | | (5,684,803 | ) | | | (9,914,394 | ) |
Class C shares | | | (777,122 | ) | | | (541,870 | ) | | | (212,031 | ) | | | (409,031 | ) |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets from share transactions | | | (4,678,857 | ) | | | (4,176,386 | ) | | | (2,947,283 | ) | | | (4,153,019 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets | | | (8,130,829 | ) | | | (4,743,127 | ) | | | (7,658,813 | ) | | | (4,137,739 | ) |
Net assets at beginning of period | | | 39,090,890 | | | | 43,834,017 | | | | 68,516,718 | | | | 72,654,457 | |
| | | | | | | | | | | | | | | | |
Net assets at end of period | | $ | 30,960,061 | | | $ | 39,090,890 | | | $ | 60,857,905 | | | $ | 68,516,718 | |
| | | | | | | | | | | | | | | | |
Undistributed net investment income | | $ | 35,251 | | | $ | 15,779 | | | $ | 23,617 | | | $ | 16,519 | |
| | | | | | | | | | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 51
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| | Seligman
| |
| | New York Municipal Fund | |
| | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | |
| | (Unaudited) | | | | |
Operations and distributions |
Investment income (loss) — net | | $ | 1,522,623 | | | $ | 3,271,158 | |
Net realized gain (loss) on investments | | | 222,562 | | | | 572,463 | |
Net change in unrealized appreciation (depreciation) on investments | | | (5,840,827 | ) | | | 346,739 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (4,095,642 | ) | | | 4,190,360 | |
| | | | | | | | |
Distributions to shareholders from: | | | | | | | | |
Net investment income | | | | | | | | |
Class A | | | (1,399,249 | ) | | | (3,192,323 | ) |
Class C | | | (125,530 | ) | | | (295,832 | ) |
Net realized gain | | | | | | | | |
Class A | | | (716,470 | ) | | | (786,601 | ) |
Class C | | | (78,474 | ) | | | (88,427 | ) |
| | | | | | | | |
Total distributions | | | (2,319,723 | ) | | | (4,363,183 | ) |
| | | | | | | | |
Share transactions |
Proceeds from sales | | | | | | | | |
Class A shares | | | 1,131,753 | | | | 5,583,991 | |
Class C shares | | | 79,768 | | | | 1,159,954 | |
Reinvestment of distributions at net asset value | | | | | | | | |
Class A shares | | | 1,538,515 | | | | 2,839,044 | |
Class C shares | | | 98,885 | | | | 199,511 | |
Payments for redemptions | | | | | | | | |
Class A shares | | | (9,437,647 | ) | | | (9,036,972 | ) |
Class C shares | | | (1,311,834 | ) | | | (1,028,442 | ) |
| | | | | | | | |
Increase (decrease) in net assets from share transactions | | | (7,900,560 | ) | | | (282,914 | ) |
| | | | | | | | |
Total increase (decrease) in net assets | | | (14,315,925 | ) | | | (455,737 | ) |
Net assets at beginning of period | | | 84,684,277 | | | | 85,140,014 | |
| | | | | | | | |
Net assets at end of period | | $ | 70,368,352 | | | $ | 84,684,277 | |
| | | | | | | | |
Undistributed (excess of distributions over) net investment income | | $ | (1,984 | ) | | $ | 172 | |
| | | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
52 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
The following tables are intended to help you understand each Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
Seligman National Municipal Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six month ended
| | | | | | | | | | | | | | | | |
Class A
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $8.03 | | | | $8.12 | | | | $7.31 | | | | $7.74 | | | | $7.81 | | | | $7.88 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .16 | | | | .33 | | | | .20 | | | | .29 | | | | .33 | | | | .35 | |
Net gains (losses) (both realized and unrealized) | | | (.59 | ) | | | .08 | | | | .86 | | | | (.44 | ) | | | (.08 | ) | | | (.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.43 | ) | | | .41 | | | | 1.06 | | | | (.15 | ) | | | .25 | | | | .28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.17 | ) | | | (.33 | ) | | | (.28 | ) | | | (.28 | ) | | | (.32 | ) | | | (.35 | ) |
Distributions from realized gains | | | (.06 | ) | | | (.17 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.23 | ) | | | (.50 | ) | | | (.28 | ) | | | (.28 | ) | | | (.32 | ) | | | (.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from regulatory settlement | | | — | | | | .00 | (a) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption fees (Note 6 to Financial Statements) | | | — | | | | .00 | (a) | | | .03 | (b) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.37 | | | | $8.03 | | | | $8.12 | | | | $7.31 | | | | $7.74 | | | | $7.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (5.46% | ) | | | 5.41% | (c) | | | 15.19% | | | | (2.07% | ) | | | 3.21% | | | | 3.58% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(d) |
Gross expenses prior to expense waiver/reimbursement | | | .93% | (e) | | | .81% | | | | 1.09% | | | | .95% | | | | .90% | | | | .92% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(f) | | | .81% | (e) | | | .79% | | | | .95% | | | | .95% | | | | .90% | | | | .92% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 4.31% | (e) | | | 4.18% | | | | 2.57% | | | | 3.77% | | | | 4.19% | | | | 4.46% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $512 | | | | $613 | | | | $666 | | | | $56 | | | | $58 | | | | $66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 2% | | | | 20% | | | | 107% | | | | 16% | | | | 29% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Highlights.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 53
Financial Highlights (continued)
Seligman National Municipal Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six month ended
| | | | | | | | | | | | | | | | |
Class C
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $8.07 | | | | $8.15 | | | | $7.31 | | | | $7.75 | | | | $7.81 | | | | $7.88 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .14 | | | | .27 | | | | .14 | | | | .22 | | | | .26 | | | | .28 | |
Net gains (losses) (both realized and unrealized) | | | (.60 | ) | | | .09 | | | | .92 | | | | (.45 | ) | | | (.07 | ) | | | (.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.46 | ) | | | .36 | | | | 1.06 | | | | (.23 | ) | | | .19 | | | | .21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.27 | ) | | | (.22 | ) | | | (.21 | ) | | | (.25 | ) | | | (.28 | ) |
Distributions from realized gains | | | (.06 | ) | | | (.17 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.20 | ) | | | (.44 | ) | | | (.22 | ) | | | (.21 | ) | | | (.25 | ) | | | (.28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from regulatory settlement | | | — | | | | .00 | (a) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.41 | | | | $8.07 | | | | $8.15 | | | | $7.31 | | | | $7.75 | | | | $7.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (5.77% | ) | | | 4.75% | (c) | | | 14.62% | | | | (3.07% | ) | | | 2.42% | | | | 2.66% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(d) |
Gross expenses prior to expense waiver/reimbursement | | | 1.69% | (e) | | | 1.56% | | | | 1.86% | | | | 1.85% | | | | 1.80% | | | | 1.82% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(f) | | | 1.56% | (e) | | | 1.54% | | | | 1.71% | | | | 1.85% | | | | 1.80% | | | | 1.82% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 3.56% | (e) | | | 3.43% | | | | 1.81% | | | | 2.87% | | | | 3.29% | | | | 3.56% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $28 | | | | $33 | | | | $37 | | | | $2 | | | | $2 | | | | $2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 2% | | | | 20% | | | | 107% | | | | 16% | | | | 29% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Highlights
| | |
(a) | | Rounds to less than $0.01. |
(b) | | Per share amount is calculated based on average shares outstanding during the period. |
(c) | | During the year ended Sept. 30, 2010, the Fund received proceeds from a regulatory settlement. There was no impact to the total return for each class. |
(d) | | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(e) | | Annualized. |
(f) | | The Investment Manager and its affiliates have agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Fund). |
The accompanying Notes to Financial Statements are an integral part of this statement.
54 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman California Municipal High-Yield Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six month ended
| | | | | | | | | | | | | | | | |
Class A
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $6.65 | | | | $6.69 | | | | $6.18 | | | | $6.55 | | | | $6.60 | | | | $6.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .14 | | | | .29 | | | | .26 | | | | .27 | | | | .28 | | | | .28 | |
Net gains (losses) (both realized and unrealized) | | | (.64 | ) | | | .06 | | | | .51 | | | | (.36 | ) | | | (.06 | ) | | | (.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.50 | ) | | | .35 | | | | .77 | | | | (.09 | ) | | | .22 | | | | .26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.31 | ) | | | (.26 | ) | | | (.27 | ) | | | (.27 | ) | | | (.28 | ) |
Distributions from realized gains | | | (.04 | ) | | | (.08 | ) | | | — | | | | (.01 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.18 | ) | | | (.39 | ) | | | (.26 | ) | | | (.28 | ) | | | (.27 | ) | | | (.28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $5.97 | | | | $6.65 | | | | $6.69 | | | | $6.18 | | | | $6.55 | | | | $6.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (7.58% | ) | | | 5.57% | | | | 12.73% | | | | (1.51% | ) | | | 3.35% | | | | 3.99% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.16% | (b) | | | 1.02% | | | | 1.27% | | | | 1.02% | | | | .95% | | | | 1.00% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | .79% | (b) | | | .79% | | | | 1.04% | | | | .92% | | | | .85% | | | | .90% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 4.60% | (b) | | | 4.44% | | | | 4.16% | | | | 4.14% | | | | 4.25% | | | | 4.26% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $23 | | | | $29 | | | | $31 | | | | $31 | | | | $29 | | | | $30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 9% | | | | 18% | | | | 63% | | | | 4% | | | | 8% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six month ended
| | | | | | | | | | | | | | | | |
Class C
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $6.66 | | | | $6.70 | | | | $6.18 | | | | $6.56 | | | | $6.61 | | | | $6.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .12 | | | | .24 | | | | .20 | | | | .21 | | | | .22 | | | | .22 | |
Net gains (losses) (both realized and unrealized) | | | (.64 | ) | | | .06 | | | | .53 | | | | (.37 | ) | | | (.06 | ) | | | (.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.52 | ) | | | .30 | | | | .73 | | | | (.16 | ) | | | .16 | | | | .20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.12 | ) | | | (.26 | ) | | | (.21 | ) | | | (.21 | ) | | | (.21 | ) | | | (.22 | ) |
Distributions from realized gains | | | (.04 | ) | | | (.08 | ) | | | — | | | | (.01 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.16 | ) | | | (.34 | ) | | | (.21 | ) | | | (.22 | ) | | | (.21 | ) | | | (.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $5.98 | | | | $6.66 | | | | $6.70 | | | | $6.18 | | | | $6.56 | | | | $6.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (7.91% | ) | | | 4.78% | | | | 11.94% | | | | (2.54% | ) | | | 2.42% | | | | 3.06% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.90% | (b) | | | 1.77% | | | | 2.13% | | | | 1.92% | | | | 1.85% | | | | 1.90% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | 1.54% | (b) | | | 1.54% | | | | 1.89% | | | | 1.82% | | | | 1.75% | | | | 1.80% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 3.86% | (b) | | | 3.69% | | | | 3.30% | | | | 3.24% | | | | 3.35% | | | | 3.35% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $5 | | | | $6 | | | | $6 | | | | $5 | | | | $2 | | | | $3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 9% | | | | 18% | | | | 63% | | | | 4% | | | | 8% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(a) | | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(b) | | Annualized. |
(c) | | The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Fund). |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 55
Financial Highlights (continued)
Seligman California Municipal Quality Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class A
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $6.62 | | | | $6.69 | | | | $6.13 | | | | $6.57 | | | | $6.69 | | | | $6.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .13 | | | | .26 | | | | .23 | | | | .26 | | | | .28 | | | | .28 | |
Net gains (losses) (both realized and unrealized) | | | (.57 | ) | | | .02 | | | | .58 | | | | (.40 | ) | | | (.12 | ) | | | (.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.44 | ) | | | .28 | | | | .81 | | | | (.14 | ) | | | .16 | | | | .21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.13 | ) | | | (.30 | ) | | | (.23 | ) | | | (.25 | ) | | | (.27 | ) | | | (.28 | ) |
Distributions from realized gains | | | (.04 | ) | | | (.05 | ) | | | (.02 | ) | | | (.05 | ) | | | (.01 | ) | | | (.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.17 | ) | | | (.35 | ) | | | (.25 | ) | | | (.30 | ) | | | (.28 | ) | | | (.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $6.01 | | | | $6.62 | | | | $6.69 | | | | $6.13 | | | | $6.57 | | | | $6.69 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (6.72% | ) | | | 4.53% | | | | 13.42% | | | | (2.26% | ) | | | 2.51% | | | | 3.14% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.14% | (b) | | | .99% | | | | 1.24% | | | | .99% | | | | .92% | | | | .94% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | .79% | (b) | | | .79% | | | | 1.09% | | | | .99% | | | | .92% | | | | .94% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 4.23% | (b) | | | 4.02% | | | | 3.67% | | | | 3.97% | | | | 4.17% | | | | 4.19% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $29 | | | | $36 | | | | $40 | | | | $34 | | | | $38 | | | | $42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 14% | | | | 21% | | | | 46% | | | | 13% | | | | 5% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class C
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $6.59 | | | | $6.66 | | | | $6.10 | | | | $6.54 | | | | $6.66 | | | | $6.76 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .11 | | | | .21 | | | | .17 | | | | .20 | | | | .22 | | | | .22 | |
Net gains (losses) (both realized and unrealized) | | | (.56 | ) | | | .02 | | | | .58 | | | | (.40 | ) | | | (.12 | ) | | | (.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.45 | ) | | | .23 | | | | .75 | | | | (.20 | ) | | | .10 | | | | .15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.11 | ) | | | (.25 | ) | | | (.17 | ) | | | (.19 | ) | | | (.21 | ) | | | (.22 | ) |
Distributions from realized gains | | | (.04 | ) | | | (.05 | ) | | | (.02 | ) | | | (.05 | ) | | | (.01 | ) | | | (.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.15 | ) | | | (.30 | ) | | | (.19 | ) | | | (.24 | ) | | | (.22 | ) | | | (.25 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $5.99 | | | | $6.59 | | | | $6.66 | | | | $6.10 | | | | $6.54 | | | | $6.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (6.96% | ) | | | 3.75% | | | | 12.52% | | | | (3.15% | ) | | | 1.60% | | | | 2.23% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.90% | (b) | | | 1.74% | | | | 2.10% | | | | 1.89% | | | | 1.82% | | | | 1.84% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | 1.54% | (b) | | | 1.54% | | | | 1.96% | | | | 1.89% | | | | 1.82% | | | | 1.84% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 3.49% | (b) | | | 3.27% | | | | 2.80% | | | | 3.07% | | | | 3.27% | | | | 3.29% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $2 | | | | $3 | | | | $4 | | | | $3 | | | | $2 | | | | $2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 14% | | | | 21% | | | | 46% | | | | 13% | | | | 5% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(a) | | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(b) | | Annualized. |
(c) | | The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Fund). |
The accompanying Notes to Financial Statements are an integral part of this statement.
56 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Minnesota Municipal Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class A
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $7.80 | | | | $7.79 | | | | $7.26 | | | | $7.55 | | | | $7.67 | | | | $7.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .15 | | | | .29 | | | | .23 | | | | .27 | | | | .30 | | | | .31 | |
Net gains (losses) (both realized and unrealized) | | | (.44 | ) | | | .11 | | | | .56 | | | | (.26 | ) | | | (.11 | ) | | | (.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.29 | ) | | | .40 | | | | .79 | | | | .01 | | | | .19 | | | | .23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.15 | ) | | | (.30 | ) | | | (.25 | ) | | | (.26 | ) | | | (.30 | ) | | | (.30 | ) |
Distributions from realized gains | | | (.10 | ) | | | (.09 | ) | | | (.01 | ) | | | (.04 | ) | | | (.01 | ) | | | (.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.25 | ) | | | (.39 | ) | | | (.26 | ) | | | (.30 | ) | | | (.31 | ) | | | (.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.26 | | | | $7.80 | | | | $7.79 | | | | $7.26 | | | | $7.55 | | | | $7.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (3.77% | ) | | | 5.45% | | | | 11.04% | | | | .07% | | | | 2.52% | | | | 3.04% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.06% | (b) | | | .93% | | | | 1.14% | | | | .91% | | | | .88% | | | | .89% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | .79% | (b) | | | .79% | | | | 1.06% | | | | .91% | | | | .88% | | | | .89% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 4.02% | (b) | | | 3.85% | | | | 3.02% | | | | 3.62% | | | | 4.01% | | | | 4.04% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $59 | | | | $67 | | | | $71 | | | | $65 | | | | $71 | | | | $78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 7% | | | | 31% | | | | 29% | | | | 16% | | | | 4% | | | | 11% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class C
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $7.82 | | | | $7.81 | | | | $7.27 | | | | $7.56 | | | | $7.68 | | | | $7.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .12 | | | | .24 | | | | .16 | | | | .20 | | | | .24 | | | | .24 | |
Net gains (losses) (both realized and unrealized) | | | (.44 | ) | | | .11 | | | | .58 | | | | (.26 | ) | | | (.12 | ) | | | (.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.32 | ) | | | .35 | | | | .74 | | | | (.06 | ) | | | .12 | | | | .17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.12 | ) | | | (.25 | ) | | | (.19 | ) | | | (.19 | ) | | | (.23 | ) | | | (.23 | ) |
Distributions from realized gains | | | (.10 | ) | | | (.09 | ) | | | (.01 | ) | | | (.04 | ) | | | (.01 | ) | | | (.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.22 | ) | | | (.34 | ) | | | (.20 | ) | | | (.23 | ) | | | (.24 | ) | | | (.24 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.28 | | | | $7.82 | | | | $7.81 | | | | $7.27 | | | | $7.56 | | | | $7.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (4.11% | ) | | | 4.66% | | | | 10.22% | | | | (.83% | ) | | | 1.59% | | | | 2.16% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(a) |
Gross expenses prior to expense waiver/reimbursement | | | 1.76% | (b) | | | 1.68% | | | | 1.98% | | | | 1.81% | | | | 1.78% | | | | 1.79% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(c) | | | 1.54% | (b) | | | 1.54% | | | | 1.86% | | | | 1.81% | | | | 1.78% | | | | 1.79% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 3.27% | (b) | | | 3.09% | | | | 2.19% | | | | 2.72% | | | | 3.11% | | | | 3.14% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $2 | | | | $2 | | | | $1 | | | | $1 | | | | $— | | | | $— | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 7% | | | | 31% | | | | 29% | | | | 16% | | | | 4% | | | | 11% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(a) | | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(b) | | Annualized. |
(c) | | The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Fund). |
The accompanying Notes to Financial Statements are an integral part of this statement.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 57
Financial Highlights (continued)
Seligman New York Municipal Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class A
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $8.31 | | | | $8.32 | | | | $7.63 | | | | $8.07 | | | | $8.19 | | | | $8.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .16 | | | | .33 | | | | .28 | | | | .32 | | | | .34 | | | | .35 | |
Net gains (losses) (both realized and unrealized) | | | (.56 | ) | | | .09 | | | | .70 | | | | (.40 | ) | | | (.12 | ) | | | (.06 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.40 | ) | | | .42 | | | | .98 | | | | (.08 | ) | | | .22 | | | | .29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.17 | ) | | | (.34 | ) | | | (.29 | ) | | | (.32 | ) | | | (.34 | ) | | | (.34 | ) |
Distributions from realized gains | | | (.08 | ) | | | (.09 | ) | | | — | | | | (.04 | ) | | | (.00 | )(a) | | | (.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.25 | ) | | | (.43 | ) | | | (.29 | ) | | | (.36 | ) | | | (.34 | ) | | | (.36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.66 | | | | $8.31 | | | | $8.32 | | | | $7.63 | | | | $8.07 | | | | $8.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (4.89% | ) | | | 5.34% | | | | 13.02% | | | | (1.19% | ) | | | 2.76% | | | | 3.61% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(b) |
Gross expenses prior to expense waiver/reimbursement | | | .97% | (c) | | | .89% | | | | 1.11% | | | | .89% | | | | .85% | | | | .88% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(d) | | | .79% | (c) | | | .79% | | | | 1.04% | | | | .89% | | | | .85% | | | | .88% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 4.11% | (c) | | | 4.00% | | | | 3.60% | | | | 4.04% | | | | 4.22% | | | | 4.25% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $64 | | | | $76 | | | | $77 | | | | $58 | | | | $61 | | | | $64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 5% | | | | 18% | | | | 53% | | | | 0% | | | | 16% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended
| | | | | | | | | | | | | | | | |
Class C
| | March 31, 2011
| | | Year ended Sept. 30, | |
Per share data | | (Unaudited) | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
Net asset value, beginning of period | | | $8.32 | | | | $8.34 | | | | $7.64 | | | | $8.08 | | | | $8.20 | | | | $8.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | .13 | | | | .27 | | | | .22 | | | | .25 | | | | .27 | | | | .27 | |
Net gains (losses) (both realized and unrealized) | | | (.55 | ) | | | .08 | | | | .70 | | | | (.41 | ) | | | (.13 | ) | | | (.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (.42 | ) | | | .35 | | | | .92 | | | | (.16 | ) | | | .14 | | | | .22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.28 | ) | | | (.22 | ) | | | (.24 | ) | | | (.26 | ) | | | (.27 | ) |
Distributions from realized gains | | | (.08 | ) | | | (.09 | ) | | | — | | | | (.04 | ) | | | (.00 | )(a) | | | (.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (.22 | ) | | | (.37 | ) | | | (.22 | ) | | | (.28 | ) | | | (.26 | ) | | | (.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $7.68 | | | | $8.32 | | | | $8.34 | | | | $7.64 | | | | $8.08 | | | | $8.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | (5.11% | ) | | | 4.42% | | | | 12.19% | | | | (2.07% | ) | | | 1.83% | | | | 2.68% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios to average net assets(b) |
Gross expenses prior to expense waiver/reimbursement | | | 1.73% | (c) | | | 1.64% | | | | 1.96% | | | | 1.79% | | | | 1.75% | | | | 1.78% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses after expense waiver/reimbursement(d) | | | 1.54% | (c) | | | 1.54% | | | | 1.88% | | | | 1.79% | | | | 1.75% | | | | 1.78% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 3.36% | (c) | | | 3.25% | | | | 2.73% | | | | 3.14% | | | | 3.32% | | | | 3.35% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental data |
Net assets, end of period (in millions) | | | $7 | | | | $9 | | | | $8 | | | | $5 | | | | $4 | | | | $5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 5% | | | | 18% | | | | 53% | | | | 0% | | | | 16% | | | | —% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
(a) | | A capital gain of $0.003 was paid for the year ended Sept. 30, 2007. |
(b) | | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(c) | | Annualized. |
(d) | | The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Fund). |
The accompanying Notes to Financial Statements are an integral part of this statement.
58 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Notes to Financial Statements
(Unaudited as of March 31, 2011)
Seligman Municipal Series Trust is currently composed of individual state tax-exempt funds, including Seligman California Municipal High-Yield Fund (California High-Yield) and Seligman California Municipal Quality Fund (California Quality). Seligman Municipal Fund Series, Inc. is currently composed of tax-exempt funds, including Seligman National Municipal Fund (National), Seligman Minnesota Municipal Fund (Minnesota), and Seligman New York Municipal Fund (New York). All Funds other than National are non-diversified. All Funds are open-end management investment companies as defined in the Investment Company Act of 1940, as amended (the 1940 Act). Each Fund in Seligman Municipal Series Trust has unlimited shares of beneficial interest. Each Fund in Seligman Municipal Fund Series, Inc. has 100 million authorized shares of capital stock.
Each Fund offers Class A and Class C shares.
Class A shares are subject to a maximum front-end sales charge of 4.75% based on the investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a 1.00% contingent deferred sales charge (CDSC) if the shares are sold within 18 months of purchase, charged as follows: 1.00% CDSC if redeemed within 12 months of purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.
Both classes of shares have identical voting, dividend and liquidation rights. Class specific expenses (e.g., distribution and service fees, transfer agency fees) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.
| |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Use of estimates
Preparing financial statements that conform to U.S. generally accepted accounting principles requires management to make estimates (e.g., on assets, liabilities and contingent assets and liabilities) that could differ from actual results.
Valuation of securities
All securities are valued at the close of business of the New York Stock Exchange (NYSE). Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price from the primary exchange. Debt securities are generally traded in the over-the-counter market and are valued by an independent pricing service using an evaluated bid. When market quotes are not readily available, the pricing service, in determining fair values of debt securities, takes into consideration such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. The policy adopted by each Fund’s Board of Directors/Trustees (the Board) generally contemplates the use of fair valuation in the event that price quotations or valuations are not readily available, price quotations or valuations from other sources are not reflective of market value and thus deemed unreliable, or a significant event has occurred in relation to a security or class of securities that is not reflected in price quotations or valuations from other sources. A fair value price is a good faith estimate of the value of a security at a given point in time.
Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates. Typically, those maturing in 60 days or less that originally had maturities of more than 60 days at acquisition date are valued at amortized cost using the market value on the 61st day before maturity. Short-term securities maturing in 60 days or less at acquisition date are valued at amortized cost. Amortized cost is an approximation of market value. Investments in money market funds are valued at net asset value.
Futures and options on futures are valued daily based upon the last sale price at the close of the market on the principal exchange on which they are traded.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 59
Notes to Financial Statements (continued)
Illiquid securities
At March 31, 2011, investments in securities included issues that are illiquid which the Funds currently limit to 15% of net assets, at market value, at the time of purchase. The aggregate value of such securities at March 31, 2011 were as follows:
| | | | | | | | |
| | | | | Percentage of
| |
Fund | | Value | | | net assets | |
Minnesota | | $ | 436,212 | | | | 0.72 | % |
Certain illiquid securities may be valued, in good faith, by management at fair value according to procedures approved by the Board. According to Board guidelines, certain unregistered securities are determined to be liquid and are not included within the 15% limitation specified above. Assets are liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the asset is valued by the Funds.
Securities purchased on a forward-commitment basis
Delivery and payment for securities that have been purchased by the Funds on a forward-commitment basis, including when-issued securities and other forward-commitments, can take place one month or more after the transaction date. During this period, such securities are subject to market fluctuations, and they may affect each Fund’s net assets the same as owned securities. Each Fund designates cash or liquid securities at least equal to the amount of its forward-commitments. At March 31, 2011, each Fund had no outstanding forward-commitments.
Guarantees and indemnifications
Under each Fund’s organizational documents, its officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to each Fund. In addition, certain of each Fund’s contracts with its service providers contain general indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against each Fund cannot be determined and each Fund has no historical basis for predicting the likelihood of any such claims.
Federal taxes
Each Fund’s policy is to comply with Subchapter M of the Internal Revenue Code that applies to regulated investment companies and to distribute substantially all of its taxable income (which includes net short-term capital gains) and tax-exempt ordinary income to shareholders. No provision for income or excise taxes is thus required. Each Fund is treated as a separate entity for federal income tax purposes.
Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all tax returns filed for the last three years.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly, when available, are reinvested in additional shares of each Fund at net asset value or payable in cash. Capital gains, when available, are normally distributed along with the last income dividend of the calendar year.
Other
Security transactions are accounted for on the date securities are purchased or sold. Dividend income, if any, is recognized on the ex-dividend date and interest income, including amortization of premium, market discount and original issue discount using the effective interest method, is accrued daily.
| |
3. | DERIVATIVE INSTRUMENTS |
Each Fund invests in certain derivative instruments as detailed below to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to maintain cash reserves while maintaining exposure to certain other assets, to offset anticipated declines in values of investments, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Each Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligation under the terms of the contract, the potential for an illiquid secondary market and the potential for market movements which may expose each Fund to gains or losses in excess of the amount shown in the Statements of Assets and Liabilities.
60 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Each Fund and any counterparty are required to maintain an agreement that requires each Fund and that counterparty to monitor (on a daily basis) the net fair value of all derivatives entered into pursuant to the contract between each Fund and such counterparty. If the net fair value of such derivatives between each Fund and that counterparty exceeds a certain threshold (as defined in the agreement), each Fund or the counterparty (as the case may be) is required to post cash and/or securities as collateral. Fair values of derivatives presented in the financial statements are not netted with the fair value of other derivatives or with any collateral amounts posted by each Fund or any counterparty.
Futures contracts
Futures contracts represent commitments for the future purchase or sale of an asset at a specified price on a specified date. Each Fund bought and sold futures contracts to manage exposure to movements in interest rates and manage the duration and yield curve exposure of the Fund versus the benchmark. Upon entering into futures contracts, each Fund bears risks which may include interest rates, exchange rates or securities prices moving unexpectedly, in which case, each Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, each Fund pledges cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments (variation margin) are made or received by each Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses. Each Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statements of Assets and Liabilities.
Effects of derivative transactions on the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of each Fund including: the fair value of derivatives by risk category and the location of those fair values in the Statements of Assets and Liabilities; the impact of derivative transactions on each Fund’s operations over the period including realized gains or losses and unrealized gains or losses. The derivative schedules following the Portfolios of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
National
Fair values of derivative instruments at March 31, 2011
At March 31, 2011, the Fund had no outstanding derivatives.
Effect of derivative instruments in the Statement of Operations for the six months ended March 31, 2011
| | | | | | |
Amount of realized gain (loss) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | (507,864 | ) | | |
| | | | | | |
| | | | | | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | 417,712 | | | |
| | | | | | |
Volume of derivative activity
Futures
At March 31, 2011, the Fund had no outstanding futures contracts. The average gross notional amount for short contracts opened, and subsequently closed, was $122,000 for the six months ended March 31, 2011.
California High-Yield
Fair values of derivative instruments at March 31, 2011
At March 31, 2011, the Fund had no outstanding derivatives.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 61
Notes to Financial Statements (continued)
Effect of derivative instruments in the Statement of Operations for the six months ended March 31, 2011
| | | | | | |
Amount of realized gain (loss) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | (5,610 | ) | | |
| | | | | | |
| | | | | | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | 25,557 | | | |
| | | | | | |
Volume of derivative activity
Futures
At March 31, 2011, the Fund had no outstanding futures contracts. The monthly average gross notional amount for short contracts was $500,000 for the six months ended March 31, 2011.
California Quality
Fair values of derivative instruments at March 31, 2011
At March 31, 2011, the Fund had no outstanding derivatives.
Effect of derivative instruments in the Statement of Operations for the six months ended March 31, 2011
| | | | | | |
Amount of realized gain (loss) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | (5,941 | ) | | |
| | | | | | |
| | | | | | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | 26,832 | | | |
| | | | | | |
Volume of derivative activity
Futures
At March 31, 2011, the Fund had no outstanding futures contracts. The monthly average gross notional amount for short contracts was $500,000 for the six months ended March 31, 2011.
Minnesota
Fair values of derivative instruments at March 31, 2011
At March 31, 2011, the Fund had no outstanding derivatives.
Effect of derivative instruments in the Statement of Operations for the six months ended March 31, 2011
| | | | | | |
Amount of realized gain (loss) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | (7,778 | ) | | |
| | | | | | |
| | | | | | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | 45,578 | | | |
| | | | | | |
Volume of derivative activity
Futures
At March 31, 2011, the Fund had no outstanding futures contracts. The monthly average gross notional amount for short contracts was $900,000 for the six months ended March 31, 2011.
New York
Fair values of derivative instruments at March 31, 2011
At March 31, 2011, the Fund had no outstanding derivatives.
62 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Effect of derivative instruments in the Statement of Operations for the six months ended March 31, 2011
| | | | | | |
Amount of realized gain (loss) on derivatives recognized in income |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | (10,617 | ) | | |
| | | | | | |
| | | | | | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | | | |
Risk exposure category | | Futures | | | |
Interest rate contracts | | $ | 56,503 | | | |
| | | | | | |
Volume of derivative activity
Futures
At March 31, 2011, the Fund had no outstanding futures contracts. The monthly average gross notional amount for short contracts was $1.1 million for the six months ended March 31, 2011.
| |
4. | EXPENSES AND SALES CHARGES |
Investment management services fees
Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager) determines which securities will be purchased, held or sold. The management fee is equal to a percentage of each Fund’s average daily net assets that declines from 0.41% to 0.25% as each Fund’s net assets increase. The management fee for the six months ended March 31, 2011 was 0.41% of each Fund’s average daily net assets.
Administrative services fees
Under an Administrative Services Agreement, each Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of each Fund’s average daily net assets that declines from 0.07% to 0.04% as each Fund’s net assets increase. The fee for the six months ended March 31, 2011 was 0.07% of each Fund’s average daily net assets. Prior to Jan. 1, 2011, Ameriprise Financial, Inc. served as the Fund Administrator. Since Jan. 1, 2011, Columbia Management Investment Advisers, LLC has served as the Fund Administrator.
Other fees
Other expenses are for, among other things, certain expenses of each Fund or the Board including: Fund boardroom and office expense, employee compensation, employee health and retirement benefits, and certain other expenses. Payment of these Fund and Board expenses is facilitated by a company providing limited administrative services to each Fund and the Board. For the six months ended March 31, 2011, other expenses paid to this company were as follows:
| | | | |
Fund | | Amount | |
National | | $ | 1,221 | |
California High-Yield | | | 63 | |
California Quality | | | 72 | |
Minnesota | | | 132 | |
New York | | | 156 | |
Compensation of board members
Under a Deferred Compensation Plan (the Plan), the board members who are not “interested persons” of each Fund as defined under the 1940 Act may defer receipt of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of each Fund or certain other funds managed by the Investment Manager. Each Fund’s liability for these amounts is adjusted for market value changes and remains in the Funds until distributed in accordance with the Plan.
Transfer agency fees
Under a Transfer Agency Agreement, Columbia Management Investment Services Corp. (the Transfer Agent) is responsible for providing transfer agency services to the Funds.
The Transfer Agent has contracted with Boston Financial Data Services (BFDS) to serve as sub-transfer agent. The Transfer Agent receives monthly account-based service fees based on the number of open accounts and is reimbursed by the Funds for the fees and expenses the Transfer Agent pays to financial intermediaries that maintain omnibus accounts with the Funds subject to an annual limitation (that varies by class) that is a percentage of the average aggregate value of each Fund’s shares maintained in each such omnibus account (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc.,
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 63
Notes to Financial Statements (continued)
which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds.
The Transfer Agent also receives compensation from fees for various shareholder services and reimbursements for certain out-of-pocket expenses.
For the six months ended March 31, 2011, the Funds’ effective transfer agent fee rates as a percentage of average daily net assets for each class were as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
National | | | 0.09 | % | | | 0.09 | % |
California High-Yield | | | 0.08 | | | | 0.08 | |
California Quality | | | 0.08 | | | | 0.09 | |
Minnesota | | | 0.08 | | | | 0.08 | |
New York | | | 0.06 | | | | 0.06 | |
Each Fund and certain other associated investment companies (together, the Guarantors) have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At March 31, 2011, each Fund’s total potential future obligation over the life of the Guaranty is as follows:
| | | | |
Fund | | Amount | |
National | | $ | 869,670 | |
California High-Yield | | | 43,194 | |
California Quality | | | 51,589 | |
Minnesota | | | 85,818 | |
New York | | | 100,814 | |
The liability remaining at March 31, 2011 for non-recurring charges associated with the lease is included within other accrued expenses in the Statements of Assets and Liabilities. At March 31, 2011, these amounts are as follows:
| | | | |
Fund | | Amount | |
National | | $ | 583,719 | |
California High-Yield | | | 28,975 | |
California Quality | | | 34,632 | |
Minnesota | | | 57,588 | |
New York | | | 67,662 | |
Distribution fees
Each Fund has an agreement with Columbia Management Investment Distributors, Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund paid a fee at an annual rate of up to 0.25% of each Fund’s average daily net assets attributable to Class A shares and a fee at an annual rate of up to 1.00% of each Fund’s average daily net assets attributable to Class C shares. For Class C shares, of the 1.00% fee, up to 0.75% was reimbursed for distribution expenses.
The amount of distribution expenses incurred by the Distributor and not yet reimbursed (unreimbursed expense) for each Fund was approximately as follows:
| | | | |
Fund | | Class C | |
National | | $ | 2,328,000 | |
California High-Yield | | | 204,000 | |
California Quality | | | 248,000 | |
Minnesota | | | 95,000 | |
New York | | | 260,000 | |
These amounts are based on the most recent information available as of Jan. 31, 2011, and may be recovered from future payments under the distribution plan or CDSCs. To the extent the unreimbursed expense has been fully recovered, the distribution fee is reduced.
64 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Sales charges
Sales charges, including front-end and CDSCs, received by the Distributor for distributing each Fund’s shares for the six months ended March 31, 2011 are as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
National | | $ | 67,357 | | | $ | 334 | |
California High-Yield | | | 12,991 | | | | 1,010 | |
California Quality | | | 929 | | | | 39 | |
Minnesota | | | 13,399 | | | | 238 | |
New York | | | 16,274 | | | | 230 | |
Expenses waived/reimbursed by the Investment Manager and its affiliates
For the six months ended March 31, 2011, the Investment Manager and its affiliates waived/reimbursed certain fees and expenses such that each Fund’s net expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Funds), were as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
National | | | 0.81 | % | | | 1.56 | % |
California High-Yield | | | 0.79 | | | | 1.54 | |
California Quality | | | 0.79 | | | | 1.54 | |
Minnesota | | | 0.79 | | | | 1.54 | |
New York | | | 0.79 | | | | 1.54 | |
The waived/reimbursed fees and expenses for the transfer agency fees at the class level were as follows:
| | | | | | | | |
Fund | | Class A | | | Class C | |
National | | $ | 102,916 | | | $ | 5,906 | |
California High-Yield | | | 4,040 | | | | 850 | |
California Quality | | | 5,599 | | | | 551 | |
Minnesota | | | 8,555 | | | | 228 | |
New York | | | 7,907 | | | | 922 | |
The management fees waived/reimbursed at the Fund level were as follows:
| | | | |
Fund | | Amount | |
National | | $ | 250,549 | |
California High-Yield | | | 51,754 | |
California Quality | | | 54,670 | |
Minnesota | | | 63,212 | |
New York | | | 60,856 | |
The Investment Manager and its affiliates have contractually agreed to waive certain fees and reimburse certain expenses until Nov. 30, 2011, unless sooner terminated at the sole discretion of the Board, such that net expenses (excluding fees and expenses of acquired funds and any reorganization costs allocated to the Funds), will not exceed the following percentage of each Fund’s class’ average daily net assets:
| | | | |
Class | | Percent | |
Class A | | | 0.79 | % |
Class C | | | 1.54 | |
In addition to the fees and expenses which each Fund bears directly, each Fund indirectly bears a pro rata share of the fees and expenses of the funds in which it invests (also referred to as “acquired funds”), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). Because the acquired funds have varied expense and fee levels and each Fund may own different proportions of acquired funds at different times, the amount of fees and expenses incurred indirectly by each Fund will vary. Reorganization (see Note 12) costs were allocated to the Fund only to the extent they are expected to be offset by the anticipated reduction in expenses borne by the Fund’s shareholders during the first year following the Reorganization.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 65
Notes to Financial Statements (continued)
| |
5. | SECURITIES TRANSACTIONS |
For the six months ended March 31, 2011, cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated for each Fund were as follows:
| | | | | | | | |
Fund | | Purchases | | | Proceeds | |
National | | $ | 11,827,423 | | | $ | 77,619,067 | |
California High-Yield | | | 2,590,377 | | | | 7,669,198 | |
California Quality | | | 4,782,843 | | | | 10,442,375 | |
Minnesota | | | 4,586,811 | | | | 9,920,248 | |
New York | | | 3,513,439 | | | | 13,350,490 | |
Realized gains and losses are determined on an identified cost basis.
Class A shares issued by National to former stockholders of Seligman Select Municipal Fund in connection with the fund merger on March 27, 2009 are subject to a redemption fee of 2% if the shares are sold within one year following the acquisition. The redemption fee is retained by National and is recorded as additional paid-in capital.
Transactions in shares for each Fund for the periods indicated were as follows:
| | | | | | | | | | | | | | | | |
| | National | | | California High-Yield | |
| | Six months ended
| | | Year ended
| | | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | | | March 31, 2011 | | | Sept. 30, 2010 | |
Class A | | | | | | | | | | | | | | | | |
Sold | | | 638,380 | | | | 3,655,983 | | | | 134,564 | | | | 252,911 | |
Reinvested distributions | | | 1,506,697 | | | | 3,382,618 | | | | 77,375 | | | | 171,057 | |
Redeemed | | | (9,025,787 | ) | | | (12,803,635 | ) | | | (760,993 | ) | | | (755,202 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (6,880,710 | ) | | | (5,765,034 | ) | | | (549,054 | ) | | | (331,234 | ) |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Sold | | | 108,682 | | | | 391,554 | | | | 40,735 | | | | 107,622 | |
Reinvested distributions | | | 68,291 | | | | 164,100 | | | | 13,890 | | | | 29,613 | |
Redeemed | | | (601,116 | ) | | | (900,159 | ) | | | (81,259 | ) | | | (194,294 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (424,143 | ) | | | (344,505 | ) | | | (26,634 | ) | | | (57,059 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | California Quality | | | Minnesota | |
| | Six months ended
| | | Year ended
| | | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | | | March 31, 2011 | | | Sept. 30, 2010 | |
Class A | | | | | | | | | | | | | | | | |
Sold | | | 45,695 | | | | 439,806 | | | | 114,799 | | | | 402,388 | |
Reinvested distributions | | | 97,423 | | | | 202,609 | | | | 235,502 | | | | 328,135 | |
Redeemed | | | (791,196 | ) | | | (1,249,417 | ) | | | (777,563 | ) | | | (1,298,760 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (648,078 | ) | | | (607,002 | ) | | | (427,262 | ) | | | (568,237 | ) |
| | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | |
Sold | | | 10,532 | | | | 44,551 | | | | 46,596 | | | | 73,520 | |
Reinvested distributions | | | 2,487 | | | | 4,268 | | | | 5,028 | | | | 5,759 | |
Redeemed | | | (124,906 | ) | | | (83,511 | ) | | | (29,209 | ) | | | (53,509 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (111,887 | ) | | | (34,692 | ) | | | 22,415 | | | | 25,770 | |
| | | | | | | | | | | | | | | | |
66 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
| | | | | | | | |
| | New York | |
| | Six months ended
| | | Year ended
| |
| | March 31, 2011 | | | Sept. 30, 2010 | |
Class A | | | | | | | | |
Sold | | | 144,501 | | | | 686,588 | |
Reinvested distributions | | | 198,845 | | | | 349,673 | |
Redeemed | | | (1,205,173 | ) | | | (1,111,046 | ) |
| | | | | | | | |
Net increase (decrease) | | | (861,827 | ) | | | (74,785 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 10,309 | | | | 142,617 | |
Reinvested distributions | | | 12,767 | | | | 24,543 | |
Redeemed | | | (170,083 | ) | | | (126,293 | ) |
| | | | | | | | |
Net increase (decrease) | | | (147,007 | ) | | | 40,867 | |
| | | | | | | | |
Each Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby each Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility became effective on Oct. 14, 2010, replacing a prior credit facility. The credit facility agreement, as amended, which is a collective agreement between each Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $300 million. Pursuant to a March 28, 2011 amendment to the credit facility agreement, the collective borrowing amount will be increased in two stages during the third quarter of 2011 to a final collective borrowing amount of $500 million. Interest is charged to each fund based on its borrowings at a rate equal to the sum of the federal funds rate plus (i) 1.25% per annum plus (ii) if one-month LIBOR exceeds the federal funds rate, the amount of such excess. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. Each Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum.
Prior to March 28, 2011, the credit facility agreement, which was a collective agreement between each Fund and certain other funds managed by the Investment Manager, severally and not jointly, permitted collective borrowings up to $300 million. The borrowers had the right, upon written notice to the Administrative Agent, to request an increase of up to $200 million in the aggregate amount of the credit facility from new or existing lenders, provided that the aggregate amount of the credit facility could at no time exceed $500 million. Each Fund also paid a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum. Prior to Oct. 14, 2010, each Fund also paid an upfront fee equal to its pro rata share of 0.04% of the amount of the credit facility. Each Fund had no borrowings during the six months ended March 31, 2011.
| |
9. | FEDERAL TAX INFORMATION |
Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of futures contracts and market discount. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains were recorded by the Funds.
| |
10. | PROCEEDS FROM REGULATORY SETTLEMENT |
During the year ended Sept. 30, 2010, as a result of a settlement of an administrative proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds, National received $20,581, which represented National’s portion of the proceeds from the settlement (National was not a party to the proceeding). The proceeds received by National were recorded as an increase to additional paid-in capital.
| |
11. | RISKS RELATING TO CERTAIN INVESTMENTS |
Non-diversification risk
Each Fund other than National is non-diversified. A non-diversified fund may invest more of its assets in fewer issuers than if it were a diversified fund. Because each investment has a greater effect on a Fund’s performance, that Fund may be more exposed to the risks of loss and volatility than a fund that invests more broadly.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 67
Notes to Financial Statements (continued)
Geographic concentration risk
Because state-specific tax-exempt funds invest primarily in the municipal securities issued by the state and political sub-divisions of the state, each Fund (except National) will be particularly affected by political, economic, regulatory or other events or conditions in the state in which it invests. This vulnerability to factors affecting the single-state Funds’ tax-exempt investments will be significantly greater than that of a more geographically diversified fund, which may result in greater losses and volatility. The value of municipal securities owned by a Fund also may be adversely affected by future changes in federal or state income tax laws.
Management has evaluated Fund related events and transactions that occurred during the period from the date of the Statements of Assets and Liabilities through the date of issuance of each Fund’s financial statements. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in each Fund’s financial statements, other than as noted below.
In August 2010, the Board of Directors/Trustees of each Fund approved a proposal to merge the respective Fund with and into the corresponding acquiring fund identified below:
Seligman National Municipal Fund into Columbia Tax-Exempt Fund
Seligman California Municipal High-Yield Fund into Columbia California Tax-Exempt Fund
Seligman California Municipal Quality Fund into Columbia California Tax-Exempt Fund
Seligman Minnesota Municipal Fund into Columbia Minnesota Tax-Exempt Fund
Seligman New York Municipal Fund into Columbia New York Tax-Exempt Fund
Each proposal was approved at a special meeting of shareholders held on Feb. 15, 2011. The merger of Seligman Minnesota Municipal Fund occurred after the close of business on April 8, 2011. The other four merger transactions are expected to occur on or about June 3, 2011.
| |
13. | INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS |
In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc. was filed in the United States District Court for the District of Arizona. The plaintiffs allege that they are investors in several American Express Company (now known as legacy RiverSource) mutual funds and they purport to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid to the defendants by the funds for investment advisory and administrative services are excessive. The plaintiffs seek remedies including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota (the District Court). In response to defendants’ motion to dismiss the complaint, the District Court dismissed one of plaintiffs’ four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants’ favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit’s decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the Gallus case to the District Court for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates. On December 9, 2010, the District Court reinstated its July 9, 2007 summary judgment order in favor of the defendants. On January 10, 2011, plaintiffs filed a notice of appeal with the Eighth Circuit.
In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)), entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in
68 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds’ Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 69
The policy of the Board is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiamanagement.com; or searching the website of the Securities and Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting columbiamanagement.com; or searching the website of the SEC at www.sec.gov.
Results of Meeting of Shareholders
Seligman National Municipal Fund
Seligman California Municipal High-Yield Fund
Seligman California Municipal Quality Fund
Seligman Minnesota Municipal Fund
Seligman New York Municipal Fund
Special Meeting of Shareholders held on Feb. 15, 2011
(Unaudited)
A brief description of the proposals voted upon at the meeting and the votes cast for, against or withheld, as well as the number of abstentions and broker non-votes as to each proposal are set forth below. A vote is based on total number of shares outstanding in the Fund.
Seligman Municipal Fund Series, Inc. – on behalf of Seligman National Municipal Fund, Seligman Minnesota Municipal Fund and Seligman New York Municipal Fund
Proposal. To elect directors to the Board.*
| | | | | | | | | | | | | | | | | | |
| | | | Shares
| | | Shares Voted
| | | | | | Broker
| |
| | | | Voted “For” | | | “Withhold” | | | Abstentions | | | Non-Votes | |
01 | | Kathleen Blatz | | | 60,323,112.636 | | | | 3,038,872.152 | | | | 0.000 | | | | 0.000 | |
02 | | Edward J. Boudreau, Jr. | | | 60,272,841.399 | | | | 3,089,143.389 | | | | 0.000 | | | | 0.000 | |
03 | | Pamela G. Carlton | | | 60,329,422.064 | | | | 3,032,562.724 | | | | 0.000 | | | | 0.000 | |
04 | | William P. Carmichael | | | 60,224,816.527 | | | | 3,137,168.261 | | | | 0.000 | | | | 0.000 | |
05 | | Patricia M. Flynn | | | 60,350,443.942 | | | | 3,011,540.846 | | | | 0.000 | | | | 0.000 | |
06 | | William A. Hawkins | | | 60,253,311.358 | | | | 3,108,673.430 | | | | 0.000 | | | | 0.000 | |
07 | | R. Glenn Hilliard | | | 60,248,067.312 | | | | 3,113,917.476 | | | | 0.000 | | | | 0.000 | |
08 | | Stephen R. Lewis, Jr. | | | 60,248,699.651 | | | | 3,113,285.137 | | | | 0.000 | | | | 0.000 | |
09 | | John F. Maher | | | 60,296,922.455 | | | | 3,065,062.333 | | | | 0.000 | | | | 0.000 | |
10 | | John J. Nagorniak | | | 60,258,724.624 | | | | 3,103,260.164 | | | | 0.000 | | | | 0.000 | |
11 | | Catherine James Paglia | | | 60,294,869.726 | | | | 3,067,115.062 | | | | 0.000 | | | | 0.000 | |
12 | | Leroy C. Richie | | | 60,258,754.875 | | | | 3,103,229.913 | | | | 0.000 | | | | 0.000 | |
13 | | Anthony M. Santomero | | | 60,279,262.465 | | | | 3,082,722.323 | | | | 0.000 | | | | 0.000 | |
14 | | Minor M. Shaw | | | 60,283,299.262 | | | | 3,078,685.526 | | | | 0.000 | | | | 0.000 | |
15 | | Alison Taunton-Rigby | | | 60,311,167.387 | | | | 3,050,817.401 | | | | 0.000 | | | | 0.000 | |
16 | | William F. Truscott | | | 60,265,076.498 | | | | 3,096,908.290 | | | | 0.000 | | | | 0.000 | |
| | | | | | | | | | | | | | | | | | |
| | |
* | | All shares of Seligman Municipal Fund Series, Inc. are voted together as a single class for election of directors. |
70 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Municipal Series Trust – on behalf of Seligman California Municipal High-Yield Fund and Seligman California Municipal Quality Fund
Proposal. To elect trustees to the Board.*
| | | | | | | | | | | | | | | | | | |
| | | | Shares
| | | Shares Voted
| | | | | | Broker
| |
| | | | Voted “For” | | | “Withhold” | | | Abstentions | | | Non-Votes | |
01 | | Kathleen Blatz | | | 6,581,723.453 | | | | 229,375.762 | | | | 0.000 | | | | 0.000 | |
02 | | Edward J. Boudreau, Jr. | | | 6,548,982.588 | | | | 262,116.627 | | | | 0.000 | | | | 0.000 | |
03 | | Pamela G. Carlton | | | 6,570,837.206 | | | | 240,262.009 | | | | 0.000 | | | | 0.000 | |
04 | | William P. Carmichael | | | 6,543,103.044 | | | | 267,996.171 | | | | 0.000 | | | | 0.000 | |
05 | | Patricia M. Flynn | | | 6,581,723.453 | | | | 229,375.762 | | | | 0.000 | | | | 0.000 | |
06 | | William A. Hawkins | | | 6,548,911.615 | | | | 262,187.600 | | | | 0.000 | | | | 0.000 | |
07 | | R. Glenn Hilliard | | | 6,551,450.453 | | | | 259,648.762 | | | | 0.000 | | | | 0.000 | |
08 | | Stephen R. Lewis, Jr. | | | 6,540,353.336 | | | | 270,745.879 | | | | 0.000 | | | | 0.000 | |
09 | | John F. Maher | | | 6,546,443.750 | | | | 264,655.465 | | | | 0.000 | | | | 0.000 | |
10 | | John J. Nagorniak | | | 6,551,450.453 | | | | 259,648.762 | | | | 0.000 | | | | 0.000 | |
11 | | Catherine James Paglia | | | 6,577,352.453 | | | | 233,746.762 | | | | 0.000 | | | | 0.000 | |
12 | | Leroy C. Richie | | | 6,546,443.750 | | | | 264,655.465 | | | | 0.000 | | | | 0.000 | |
13 | | Anthony M. Santomero | | | 6,548,982.588 | | | | 262,116.627 | | | | 0.000 | | | | 0.000 | |
14 | | Minor M. Shaw | | | 6,548,982.588 | | | | 262,116.627 | | | | 0.000 | | | | 0.000 | |
15 | | Alison Taunton-Rigby | | | 6,579,184.615 | | | | 231,914.600 | | | | 0.000 | | | | 0.000 | |
16 | | William F. Truscott | | | 6,538,096.341 | | | | 273,002.874 | | | | 0.000 | | | | 0.000 | |
| | | | | | | | | | | | | | | | | | |
| | |
* | | All shares of Seligman Municipal Series Trust are voted together as a single class for election of trustees. |
Seligman National Municipal Fund
Proposal. To approve an Agreement and Plan of Reorganization between Seligman National Municipal Fund and Columbia Tax-Exempt Fund.
| | | | | | | | | | | | | | |
Shares Voted
| | | Shares Voted
| | | | | | Broker
| |
“For” | | | “Against” | | | Abstentions | | | Non-Votes | |
| 39,597,607.642 | | | | 1,952,344.677 | | | | 1,502,962.902 | | | | 7,778,104.000 | |
| | | | | | | | | | | | | | |
Seligman California Municipal High-Yield Fund
Proposal. To approve an Agreement and Plan of Reorganization between Seligman California Municipal High-Yield Fund and Columbia California Tax-Exempt Fund.
| | | | | | | | | | | | | | |
Shares Voted
| | | Shares Voted
| | | | | | Broker
| |
“For” | | | “Against” | | | Abstentions | | | Non-Votes | |
| 2,613,779.896 | | | | 67,350.243 | | | | 58,527.582 | | | | 620,581.000 | |
| | | | | | | | | | | | | | |
Seligman California Municipal Quality Fund
Proposal. To approve an Agreement and Plan of Reorganization between Seligman California Municipal Quality Fund and Columbia California Tax-Exempt Fund.
| | | | | | | | | | | | | | |
Shares Voted
| | | Shares Voted
| | | | | | Broker
| |
“For” | | | “Against” | | | Abstentions | | | Non-Votes | |
| 2,795,685.952 | | | | 98,114.571 | | | | 130,912.971 | | | | 426,147.000 | |
| | | | | | | | | | | | | | |
SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT 71
Results of Meeting of Shareholders (continued)
Seligman Minnesota Municipal Fund
Proposal. To approve an Agreement and Plan of Reorganization between Seligman Minnesota Municipal Fund and Columbia Minnesota Tax-Exempt Fund.
| | | | | | | | | | | | | | |
Shares Voted
| | | Shares Voted
| | | | | | Broker
| |
“For” | | | “Against” | | | Abstentions | | | Non-Votes | |
| 4,623,037.167 | | | | 293,150.204 | | | | 208,170.109 | | | | 1,189,690.000 | |
| | | | | | | | | | | | | | |
Seligman New York Municipal Fund
Proposal. To approve an Agreement and Plan of Reorganization between Seligman New York Municipal Fund and Columbia New York Tax-Exempt Fund.
| | | | | | | | | | | | | | |
Shares Voted
| | | Shares Voted
| | | | | | Broker
| |
“For” | | | “Against” | | | Abstentions | | | Non-Votes | |
| 4,667,904.809 | | | | 229,799.554 | | | | 179,450.724 | | | | 1,139,763.000 | |
| | | | | | | | | | | | | | |
72 SELIGMAN MUNICIPAL FUNDS — 2011 SEMIANNUAL REPORT
Seligman Municipal Funds
P.O. Box 8081
Boston, MA 02266-8081
columbiamanagement.com
This report must be accompanied or preceded by the Fund’s current prospectus. The Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Seligman is an offering brand of Columbia Management Investment Advisers, LLC.
| |
©2011 Columbia Management Investment Advisers, LLC. All rights reserved. | SL-9956 C (5/11) |
| | |
Item 2. | | Code of Ethics. Not applicable for semi-annual reports. |
| | |
Item 3. | | Audit Committee Financial Expert. Not applicable for semi-annual reports. |
| | |
Item 4. | | Principal Accountant Fees and Services. Not applicable for semi-annual reports. |
| | |
Item 5. | | Audit Committee of Listed Registrants. Not applicable. |
(a) | | The registrant’s “Schedule 1 — Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. |
|
(b) | | Not applicable. |
| | |
Item 7. | | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. |
| | |
Item 8. | | Portfolio Managers of Closed-End Management Investment Companies. Not applicable. |
| | |
Item 9. | | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. |
| | |
Item 10. | | Submission of Matters to a Vote of Security Holders. |
| | There were no material changes to the procedure by which shareholders may recommend nominees to the registrant’s board of directors. |
| | |
Item 11. | | Controls and Procedures. |
| | (a) The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
|
| | (b) There was no change in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable for semi annual reports.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Seligman Municipal Series Trust
| | | | |
|
By | | /s/ J. Kevin Connaughton | | |
| | J. Kevin Connaughton | | |
| | President and Principal Executive Officer | | |
| | | | |
Date | | May 20, 2011 | | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| | | | |
|
By | | /s/ J. Kevin Connaughton | | |
| | J. Kevin Connaughton | | |
| | President and Principal Executive Officer | | |
| | | | |
Date | | May 20, 2011 | | |
| | | | |
By | | /s/ Michael G. Clarke | | |
| | Michael G. Clarke | | |
| | Treasurer and Principal Financial Officer | | |
| | | | |
Date | | May 20, 2011 | | |