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: 9/30
Date of reporting period: 3/31
Semiannual Report
(SELIGMAN LOGO)
SELIGMAN MUNICIPAL FUNDS
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, 2010
EACH FUND SEEKS TO PROVIDE SHAREHOLDERS
WITH INCOME EXEMPT FROM REGULAR INCOME
TAX.
(SINGLE STRATEGY FUNDS ICON)
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance
Seligman National Municipal
Fund.......................... 2
Seligman California Municipal
High-Yield Fund............... 5
Seligman California Municipal
Quality Fund.................. 7
Seligman Minnesota Municipal
Fund.......................... 9
Seligman New York Municipal
Fund.......................... 11
Fund Expenses Examples............. 13
Portfolios of Investments.......... 16
Statements of Assets and
Liabilities...................... 48
Statements of Operations........... 50
Statements of Changes in Net
Assets........................... 52
Financial Highlights............... 55
Notes to Financial Statements...... 61
Proxy Voting....................... 71
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman National Municipal Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman National Municipal Fund (the Fund) Class A shares (excluding sales
charge) decreased 0.38% for the six months ended March 31, 2010.
> The Fund underperformed its benchmark, the Barclays Capital Municipal Bond
Index, which gained 0.28% during the same period.
> The Fund underperformed its peer group, as measured by the Lipper General
Municipal Debt Funds Index, which rose 0.11% for the six-month period.
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
Seligman National Municipal Fund
Class A (excluding sales charge) -0.38% +11.02% +4.31% +4.16% +4.75%
- ----------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index(1) (unmanaged) +0.28% +9.69% +4.56% +4.58% +5.58%
- ----------------------------------------------------------------------------------------------------
Lipper General Municipal Debt Funds Index(2) +0.11% +14.15% +3.11% +3.78% +4.90%
- ----------------------------------------------------------------------------------------------------
Lipper General Municipal Debt Funds Average(3) +0.05% +12.86% +2.51% +3.18% +4.45%
- ----------------------------------------------------------------------------------------------------
</Table>
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 seligman.com or calling 800.221.2450.
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 and average do not reflect the effects of sales charges, expenses
(excluding Lipper) and taxes. It is not possible to invest directly in an index
or an average.
(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 (the Lipper Index) includes
the 30 largest municipal debt funds tracked by Lipper Inc. The Lipper
Index's returns include net reinvested dividends.*
(3) The Lipper General Municipal Debt Funds Average (the Lipper Average)
measures the performance of funds that invest primarily in municipal debt
issues in the top four credit ratings. The Lipper Average's returns include
net reinvested dividends.*
* On Oct. 1, 2009, the Lipper Index replaced the Lipper Average as the Fund's
secondary benchmark. The Lipper Average includes all funds categorized by
Lipper within the broad universe of funds in the Lipper Average, whereas the
Lipper Index includes only a select peer group from the Lipper Average, as
described above. This change was made to bring the selection of the Seligman
Fund secondary benchmarks in line with the practice of the Fund Family,
which would permit a common shareholder experience and provide a more
focused peer group for performance comparison purposes. Information on both
the Lipper Index and the Lipper Average will be included for a one-year
transition period. Thereafter, only the Lipper Index will be included.
- --------------------------------------------------------------------------------
2 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman National Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT MARCH 31, 2010
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A (inception 12/31/83) -0.38% +11.02% +4.31% +4.16% +4.75%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -0.75% +10.28% +3.50% +3.32% +3.86%
- -----------------------------------------------------------------------------------------------------
With sales charge
Class A (inception 12/31/83) -5.06% +5.75% +2.63% +3.16% +4.24%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -1.70% +9.28% +3.50% +3.32% +3.86%
- -----------------------------------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 4.75%.
Class C shares may be subject to a 1% CDSC if shares are sold within one year
after purchase.
* Not annualized.
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average life(1) 19.91 years
- ----------------------------------------------------
Effective duration(2) 9.77 years
- ----------------------------------------------------
Weighted average bond rating(3) AA-
- ----------------------------------------------------
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
TOP TEN STATES(1) (at March 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
Ohio 10.8%
- ---------------------------------------------------------------------------
California 10.4%
- ---------------------------------------------------------------------------
South Carolina 7.5%
- ---------------------------------------------------------------------------
Massachusetts 6.4%
- ---------------------------------------------------------------------------
Florida 4.7%
- ---------------------------------------------------------------------------
Texas 4.4%
- ---------------------------------------------------------------------------
Louisiana 4.3%
- ---------------------------------------------------------------------------
New York 4.0%
- ---------------------------------------------------------------------------
Wisconsin 4.0%
- ---------------------------------------------------------------------------
Michigan 3.6%
- ---------------------------------------------------------------------------
</Table>
(1) Percentages indicated are based upon total investments (excluding Cash &
Cash Equivalents).
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman National Municipal Fund
QUALITY BREAKDOWN OF FIXED INCOME SECURITIES(1) (at March 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 22.8%
- ---------------------------------------------------------------------------
AA rating 23.7%
- ---------------------------------------------------------------------------
A rating 40.0%
- ---------------------------------------------------------------------------
BBB rating 13.5%
- ---------------------------------------------------------------------------
</Table>
(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
corporate 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.
RiverSource Investments, LLC (the Investment Manager)* rates a security using an
internal rating system when Moody's doesn't provide a rating. Ratings for 2.26%
of the bond portfolio assets were determined through internal analysis.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
There are risks associated with an investment in a municipal bond fund,
including credit risk, interest rate risk, and prepayment and extension risk.
See the Fund's prospectus for information on these and other risks associated
with the Fund. In general, bond prices rise when interest rates fall and vice
versa. This effect is more pronounced for longer-term securities. Income from
tax-exempt funds may be subject to state and local taxes and a portion of income
may be subject to the federal and/or state alternative minimum tax for certain
investors. Federal income tax rules will apply to any capital gains
distribution.
- --------------------------------------------------------------------------------
4 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman California Municipal High-Yield Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman California Municipal High-Yield Fund (the Fund) Class A shares
(excluding sales charge) decreased 0.57% for the six months ended March 31,
2010.
> The Fund underperformed its benchmark, the Barclays Capital Municipal Bond
Index, which gained 0.28% for the same period.
> The Fund performed in line with its peer group, the Lipper California
Municipal Debt Funds Index, which fell 0.58% during the six month period.
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
Seligman California Municipal High-Yield Fund
Class A (excluding sales charge) -0.57% +10.95% +3.69% +4.03% +5.10%
- ----------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index(1) (unmanaged) +0.28% +9.69% +4.56% +4.58% +5.58%
- ----------------------------------------------------------------------------------------------------
Lipper California Municipal Debt Funds Index(2) -0.58% +13.75% +2.28% +3.30% +4.67%
- ----------------------------------------------------------------------------------------------------
Lipper California Municipal Debt Funds Average(3) -0.53% +13.83% +1.90% +3.02% +4.46%
- ----------------------------------------------------------------------------------------------------
</Table>
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 seligman.com or calling 800.221.2450.
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 and average do not reflect the effects of sales charges, expenses
(excluding Lipper) and taxes. It is not possible to invest directly in an index
or an average.
(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 (the Lipper Index) includes
the 30 largest California municipal debt funds tracked by Lipper Inc. The
Lipper Index's returns include net reinvested dividends.*
(3) The Lipper California Municipal Debt Funds Average (the Lipper Average)
measures the performance of funds that limit their assets to those
securities exempt from taxation in the state of California. The Lipper
Average's returns include net reinvested dividends.*
* On Oct. 1, 2009, the Lipper Index replaced the Lipper Average as the Fund's
secondary benchmark. The Lipper Average includes all funds categorized by
Lipper within the broad universe of funds in the Lipper Average, whereas the
Lipper Index includes only a select peer group from the Lipper Average, as
described above. This change was made to bring the selection of the Seligman
Fund secondary benchmarks in line with the practice of the Fund Family,
which would permit a common shareholder experience and provide a more
focused peer group for performance comparison purposes. Information on both
the Lipper Index and the Lipper Average will be included for a one-year
transition period. Thereafter, only the Lipper Index will be included.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 5
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman California Municipal High-Yield Fund
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT MARCH 31, 2010
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A (inception 11/20/84) -0.57% +10.95% +3.69% +4.03% +5.10%
- ------------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -0.93% +10.09% +2.80% +3.12% +4.19%
- ------------------------------------------------------------------------------------------------------
With sales charge
Class A (inception 11/20/84) -5.24% +5.76% +2.02% +3.01% +4.59%
- ------------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -1.89% +9.09% +2.80% +3.12% +4.19%
- ------------------------------------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 4.75%.
Class C shares may be subject to a 1% CDSC if shares are sold within one year
after purchase.
* Not annualized.
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
HIGH
X MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average life(1) 21.90 years
- ----------------------------------------------------
Effective duration(2) 10.64 years
- ----------------------------------------------------
Weighted average bond rating(3) A+
- ----------------------------------------------------
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
QUALITY BREAKDOWN OF FIXED INCOME SECURITIES(1) (at March 31, 2009)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 7.2%
- ---------------------------------------------------------------------------
AA rating 26.2%
- ---------------------------------------------------------------------------
A rating 51.4%
- ---------------------------------------------------------------------------
BBB rating 15.2%
- ---------------------------------------------------------------------------
</Table>
(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
corporate 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.
RiverSource Investments, LLC (the Investment Manager)* rates a security using an
internal rating system when Moody's doesn't provide a rating.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
There are risks associated with an investment in a municipal bond fund,
including credit risk, interest rate risk, prepayment and extension risk, and
geographic concentration risk. See the Fund's prospectus for information on
these and other risks associated with the Fund. In general, bond prices rise
when interest rates fall and vice versa. This effect is more pronounced for
longer-term securities. Non-investment grade securities, commonly called "high-
yield" or "junk" bonds, generally have more volatile prices and carry more risk
to principal and income than investment grade securities. Because the Fund
concentrates its investments in municipal securities issued by a single state
and its municipalities, specific events or factors affecting a particular state
can cause more volatility in the Fund than a fund that is more geographically
diversified. Income from tax-exempt funds may be subject to state and local
taxes and a portion of income may be subject to the federal and/or state
alternative minimum tax for certain investors. Federal income tax rules will
apply to any capital gains distribution.
- --------------------------------------------------------------------------------
6 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman California Municipal Quality Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman California Municipal Quality Fund (the Fund) Class A shares
(excluding sales charge) decreased 0.59% for the six months ended March 31,
2010.
> The Fund underperformed its benchmark, the Barclays Capital Municipal Bond
Index, which rose 0.28% for the same period.
> The Fund performed in line with its peer group, the Lipper California
Municipal Debt Funds Index, which fell 0.58% for the six month period.
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
Seligman California Municipal Quality Fund
Class A (excluding sales charge) -0.59% +8.78% +3.68% +3.62% +4.82%
- ----------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index(1) (unmanaged) +0.28% +9.69% +4.56% +4.58% +5.58%
- ----------------------------------------------------------------------------------------------------
Lipper California Municipal Debt Funds Index(2) -0.58% +13.75% +2.28% +3.30% +4.67%
- ----------------------------------------------------------------------------------------------------
Lipper California Municipal Debt Funds Average(3) -0.53% +13.83 +1.90% +3.02% +4.46%
- ----------------------------------------------------------------------------------------------------
</Table>
* Not annualized.
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 seligman.com or calling 800.221.2450.
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 and average do not reflect the effects of sales charges, expenses
(excluding Lipper) and taxes. It is not possible to invest directly in an index
or an average.
(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 (the Lipper Index) includes
the 30 largest California municipal debt funds tracked by Lipper Inc. The
Lipper Index's returns include net reinvested dividends.*
(3) The Lipper California Municipal Debt Funds Average (the Lipper Average)
measures the performance of funds that limit their assets to those
securities exempt from taxation in the state of California. The Lipper
Average's returns include net reinvested dividends.*
* On Oct. 1, 2009, the Lipper Index replaced the Lipper Average as the Fund's
secondary benchmark. The Lipper Average includes all funds categorized by
Lipper within the broad universe of funds in the Lipper Average, whereas the
Lipper Index includes only a select peer group from the Lipper Average, as
described above. This change was made to bring the selection of the Seligman
Fund secondary benchmarks in line with the practice of the Fund Family,
which would permit a common shareholder experience and provide a more
focused peer group for performance comparison purposes. Information on both
the Lipper Index and the Lipper Average will be included for a one-year
transition period. Thereafter, only the Lipper Index will be included.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 7
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman California Municipal Quality Fund
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT MARCH 31, 2010
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A (inception 11/20/84) -0.59% +8.78% +3.68% +3.62% +4.82%
- ---------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -0.98% +7.96% +2.81% +2.70% +3.90%
- ---------------------------------------------------------------------------------------------------
With sales charge
Class A (inception 11/20/84) -5.27% +3.61% +2.02% +2.61% +4.30%
- ---------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -1.94% +6.96% +2.81% +2.70% +3.90%
- ---------------------------------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 4.75%.
Class C shares may be subject to a 1% CDSC if shares are sold within one year
after purchase.
* Not annualized.
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average life(1) 19.75 years
- ----------------------------------------------------
Effective duration(2) 9.90 years
- ----------------------------------------------------
Weighted average bond rating(3) AA
- ----------------------------------------------------
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
QUALITY BREAKDOWN OF FIXED INCOME SECURITIES(1) (at March 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 17.4%
- ---------------------------------------------------------------------------
AA rating 49.7%
- ---------------------------------------------------------------------------
A rating 32.9%
- ---------------------------------------------------------------------------
</Table>
(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
corporate 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.
RiverSource Investments, LLC (the Investment Manager)* rates a security using an
internal rating system when Moody's doesn't provide a rating.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
There are risks associated with an investment in a municipal bond fund,
including credit risk, interest rate risk, prepayment and extension risk, and
geographic concentration risk. See the Fund's prospectus for information on
these and other risks associated with the Fund. In general, bond prices rise
when interest rates fall and vice versa. This effect is more pronounced for
longer-term securities. Because the Fund concentrates its investments in
municipal securities issued by a single state and its municipalities, specific
events or factors affecting a particular state can cause more volatility in the
Fund than a fund that is more geographically diversified. Income from tax-exempt
funds may be subject to state and local taxes and a portion of income may be
subject to the federal and/or state alternative minimum tax for certain
investors. Federal income tax rules will apply to any capital gains
distribution.
- --------------------------------------------------------------------------------
8 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman Minnesota Municipal Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman Minnesota Municipal Fund (the Fund) Class A shares (excluding sales
charge) increased 0.32% for the six months ended March 31, 2010.
> The Fund slightly outperformed its benchmark, the Barclays Capital Municipal
Bond Index, which rose 0.28% for the same period.
> The Fund underperformed its peer group, as measured by the Lipper Minnesota
Municipal Debt Funds Index, which gained 0.61% for the six month period.
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
Seligman Minnesota Municipal Fund
Class A (excluding sales charge) +0.32% +6.27% +4.14% +3.78% +4.66%
- ----------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index(1) (unmanaged) +0.28% +9.69% +4.56% +4.58% +5.58%
- ----------------------------------------------------------------------------------------------------
Lipper Minnesota Municipal Debt Funds Index(2) +0.61% +10.26% +3.78% +3.97% +4.91%
- ----------------------------------------------------------------------------------------------------
Lipper Minnesota Municipal Debt Funds Average(3) +0.66% +10.88% +3.11% +3.70% +4.73%
- ----------------------------------------------------------------------------------------------------
</Table>
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 seligman.com or calling 800.221.2450.
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 and average do not reflect the effects of sales charges, expenses
(excluding Lipper) and taxes. It is not possible to invest directly in an index
or an average.
(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 (the Lipper Index) includes
the 10 largest Minnesota municipal debt funds tracked by Lipper Inc. The
Lipper Index's returns include net reinvested dividends.*
(3) The Lipper Minnesota Municipal Debt Funds Average (the Lipper Average)
measures the performance of funds that limit their assets to those
securities exempt from taxation in the state of Minnesota. The Lipper
Average's returns include net reinvested dividends.*
* On Oct. 1, 2009, the Lipper Index replaced the Lipper Average as the Fund's
secondary benchmark. The Lipper Average includes all funds categorized by
Lipper within the broad universe of funds in the Lipper Average, whereas the
Lipper Index includes only a select peer group from the Lipper Average, as
described above. This change was made to bring the selection of the Seligman
Fund secondary benchmarks in line with the practice of the Fund Family,
which would permit a common shareholder experience and provide a more
focused peer group for performance comparison purposes. Information on both
the Lipper Index and the Lipper Average will be included for a one-year
transition period. Thereafter, only the Lipper Index will be included.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 9
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman Minnesota Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT MARCH 31, 2010
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A (inception 12/30/83) +0.32% +6.27% +4.14% +3.78% +4.66%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -0.18% +5.30% +3.24% +2.87% +3.73%
- -----------------------------------------------------------------------------------------------------
With sales charge
Class A (inception 12/30/83) -4.46% +1.25% +2.46% +2.76% +4.15%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -1.15% +4.30% +3.24% +2.87% +3.73%
- -----------------------------------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 4.75%.
Class C shares may be subject to a 1% CDSC if shares are sold within one year
after purchase.
* Not annualized.
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average life(1) 16.75 years
- ----------------------------------------------------
Effective duration(2) 8.64 years
- ----------------------------------------------------
Weighted average bond rating(3) AA
- ----------------------------------------------------
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
QUALITY BREAKDOWN OF FIXED INCOME SECURITIES(1) (at March 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 39.1%
- ---------------------------------------------------------------------------
AA rating 19.6%
- ---------------------------------------------------------------------------
A rating 33.5%
- ---------------------------------------------------------------------------
BBB rating 7.8%
- ---------------------------------------------------------------------------
</Table>
(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
corporate 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.
RiverSource Investments, LLC (the Investment Manager)* rates a security using an
internal rating system when Moody's doesn't provide a rating. Ratings for 0.4%
of the bond portfolio assets were determined through internal analysis.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
There are risks associated with an investment in a municipal bond fund,
including credit risk, interest rate risk, prepayment and extension risk, and
geographic concentration risk. See the Fund's prospectus for information on
these and other risks associated with the Fund. In general, bond prices rise
when interest rates fall and vice versa. This effect is more pronounced for
longer-term securities. Because the Fund concentrates its investments in
municipal securities issued by a single state and its municipalities, specific
events or factors affecting a particular state can cause more volatility in the
Fund than a fund that is more geographically diversified. Income from tax-exempt
funds may be subject to state and local taxes and a portion of income may be
subject to the federal and/or state alternative minimum tax for certain
investors. Federal income tax rules will apply to any capital gains
distribution.
- --------------------------------------------------------------------------------
10 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
Seligman New York Municipal Fund
FUND SUMMARY
- --------------------------------------------------------------------------------
> Seligman New York Municipal Fund (the Fund) Class A shares (excluding sales
charge) increased 0.18% for the six months ended March 31, 2010.
> The Fund underperformed its benchmark, the Barclays Capital Municipal Bond
Index, which gained 0.28% for the same period.
> The Fund underperformed its peer group, as measured by the Lipper New York
Municipal Debt Funds Index, which increased 0.43% for the six month period.
ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
Seligman New York Municipal Fund
Class A (excluding sales charge) +0.18% +8.11% +4.23% +4.08% +5.15%
- ----------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index(1) (unmanaged) +0.28% +9.69% +4.56% +4.58% +5.58%
- ----------------------------------------------------------------------------------------------------
Lipper New York Municipal Debt Funds Index(2) +0.43% +13.57% +3.41% +3.84% +4.92%
- ----------------------------------------------------------------------------------------------------
Lipper New York Municipal Debt Funds Average(3) +0.40% +13.92% +3.05% +3.57% +4.74%
- ----------------------------------------------------------------------------------------------------
</Table>
* Not annualized.
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 seligman.com or calling 800.221.2450.
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 and average do not reflect the effects of sales charges, expenses
(excluding Lipper) and taxes. It is not possible to invest directly in an index
or an average.
(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 (the Lipper Index) includes
the 30 largest New York municipal debt funds tracked by Lipper Inc. The
Lipper Index's returns include net reinvested dividends.*
(3) The Lipper New York Municipal Debt Funds Average (the Lipper Average)
measures the performance of funds that limit their assets to those
securities exempt from taxation in the state of New York. The Lipper
Average's returns include net reinvested dividends.*
* On Oct. 1, 2009, the Lipper Index replaced the Lipper Average as the Fund's
secondary benchmark. The Lipper Average includes all funds categorized by
Lipper within the broad universe of funds in the Lipper Average, whereas the
Lipper Index includes only a select peer group from the Lipper Average, as
described above. This change was made to bring the selection of the Seligman
Fund secondary benchmarks in line with the practice of the Fund Family,
which would permit a common shareholder experience and provide a more
focused peer group for performance comparison purposes. Information on both
the Lipper Index and the Lipper Average will be included for a one-year
transition period. Thereafter, only the Lipper Index will be included.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 11
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
Seligman New York Municipal Fund
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT MARCH 31, 2010
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A (inception 1/3/84) +0.18% +8.11% +4.23% +4.08% +5.15%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -0.32% +7.14% +3.33% +3.17% +4.21%
- -----------------------------------------------------------------------------------------------------
With sales charge
Class A (inception 1/3/84) -4.53% +2.99% +2.53% +3.07% +4.64%
- -----------------------------------------------------------------------------------------------------
Class C (inception 5/27/99) -1.28% +6.14% +3.33% +3.17% +4.21%
- -----------------------------------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum initial sales charge of 4.75%.
Class C shares may be subject to a 1% CDSC if shares are sold within one year
after purchase.
* Not annualized.
STYLE MATRIX
- --------------------------------------------------------------------------------
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</Table>
Shading within the style matrix approximates areas in which the Fund is designed
to generally invest.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average life(1) 19.66 years
- ----------------------------------------------------
Effective duration(2) 9.15 years
- ----------------------------------------------------
Weighted average bond rating(3) AA
- ----------------------------------------------------
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
QUALITY BREAKDOWN OF FIXED INCOME SECURITIES(1) (at March 31, 2010)
- ---------------------------------------------------------------------
<Table>
<Caption>
AAA rating 33.6%
- ---------------------------------------------------------------------------
AA rating 35.8%
- ---------------------------------------------------------------------------
A rating 25.4%
- ---------------------------------------------------------------------------
BBB rating 5.2%
- ---------------------------------------------------------------------------
</Table>
(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
corporate 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.
RiverSource Investments, LLC (the Investment Manager)* rates a security using an
internal rating system when Moody's doesn't provide a rating.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
There are risks associated with an investment in a municipal bond fund,
including credit risk, interest rate risk, prepayment and extension risk, and
geographic concentration risk. See the Fund's prospectus for information on
these and other risks associated with the Fund. In general, bond prices rise
when interest rates fall and vice versa. This effect is more pronounced for
longer-term securities. Because the Fund concentrates its investments in
municipal securities issued by a single state and its municipalities, specific
events or factors affecting a particular state can cause more volatility in the
Fund than a fund that is more geographically diversified. Income from tax-exempt
funds may be subject to state and local taxes and a portion of income may be
subject to the federal and/or state alternative minimum tax for certain
investors. Federal income tax rules will apply to any capital gains
distribution.
- --------------------------------------------------------------------------------
12 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLES ---------------------------------------------------------
(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 (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 and held for the six months ended March 31, 2010.
ACTUAL EXPENSES
The first line of each table provides information about actual account values
and actual expenses. 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 Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. 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
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
OCT. 1, 2009 MARCH 31, 2010 THE PERIOD(a) EXPENSE RATIO
- -----------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 996.20 $3.93 .79%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.99 $3.98 .79%
- -----------------------------------------------------------------------------------------------
Class C
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 992.50 $7.65 1.54%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.25 $7.75 1.54%
- -----------------------------------------------------------------------------------------------
</Table>
(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, 2010: -0.38%
for Class A and -0.75% for Class C.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 13
FUND EXPENSES EXAMPLES (continued) ---------------------------------------------
Seligman California Municipal High-Yield Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
OCT. 1, 2009 MARCH 31, 2010 THE PERIOD(a) EXPENSE RATIO
- -----------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 994.30 $3.93 .79%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.99 $3.98 .79%
- -----------------------------------------------------------------------------------------------
Class C
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 990.70 $7.64 1.54%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.25 $7.75 1.54%
- -----------------------------------------------------------------------------------------------
</Table>
(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, 2010: -0.57%
for Class A and -0.93% for Class C.
Seligman California Municipal Quality Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
OCT. 1, 2009 MARCH 31, 2010 THE PERIOD(a) EXPENSE RATIO
- -----------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 994.10 $3.93 .79%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.99 $3.98 .79%
- -----------------------------------------------------------------------------------------------
Class C
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 990.20 $7.64 1.54%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.25 $7.75 1.54%
- -----------------------------------------------------------------------------------------------
</Table>
(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, 2010: -0.59%
for Class A and -0.98% for Class C.
Seligman Minnesota Municipal Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
OCT. 1, 2009 MARCH 31, 2010 THE PERIOD(a) EXPENSE RATIO
- -----------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,003.20 $3.95 .79%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.99 $3.98 .79%
- -----------------------------------------------------------------------------------------------
Class C
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 998.20 $7.67 1.54%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.25 $7.75 1.54%
- -----------------------------------------------------------------------------------------------
</Table>
(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, 2010: +0.32%
for Class A and -0.18% for Class C.
- --------------------------------------------------------------------------------
14 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman New York Municipal Fund
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
OCT. 1, 2009 MARCH 31, 2010 THE PERIOD(a) EXPENSE RATIO
- -----------------------------------------------------------------------------------------------
Class A
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,001.80 $3.94 .79%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.99 $3.98 .79%
- -----------------------------------------------------------------------------------------------
Class C
- -----------------------------------------------------------------------------------------------
Actual(b) $1,000 $ 996.80 $7.67 1.54%
- -----------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,017.25 $7.75 1.54%
- -----------------------------------------------------------------------------------------------
</Table>
(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, 2010: +0.18%
for Class A and -0.32% for Class C.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 15
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman National Municipal Fund
MARCH 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
MUNICIPAL BONDS (98.9%)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
ALASKA (1.2%)
Alaska Energy Authority
Refunding Revenue Bonds
Bradley Lake
4th Series 2000 (AGM)
07-01-20 6.00% $4,145,000 $4,757,216
07-01-21 6.00 2,395,000 2,753,795
---------------
Total 7,511,011
- -------------------------------------------------------------------------------------
ARIZONA (0.5%)
Arizona Transportation Board
Revenue Bonds
Maricopa County Regional Area Road Fund
Series 2007
07-01-25 5.00 1,500,000 1,610,595
Arizona Water Infrastructure Finance Authority
Revenue Bonds
Water Quality
Series 2008A
10-01-22 5.00 1,500,000 1,674,120
---------------
Total 3,284,715
- -------------------------------------------------------------------------------------
CALIFORNIA (9.9%)
Abag Finance Authority for Nonprofit Corporations
Revenue Bonds
Sharp Healthcare
Series 2009
08-01-39 6.25 4,000,000 4,313,240
California Health Facilities Financing Authority
Revenue Bonds
Cedars-Sinai Medical Center
Series 2009
08-15-39 5.00 1,850,000 1,751,913
California Health Facilities Financing Authority
Revenue Bonds
Providence Health & Services
Series 2009B
10-01-39 5.50 5,250,000 5,454,645
California Statewide Communities Development Authority
Revenue Bonds
John Muir Health
Series 2006A
08-15-32 5.00 1,000,000 950,840
County of Sacramento
Revenue Bonds
Series 2009B
07-01-39 5.75 4,000,000 4,272,880
Foothill Eastern Transportation Corridor Agency
Refunding Revenue Bonds
Series 1999
01-15-40 5.75 4,100,000 3,919,846
Golden State Tobacco Securitization Corporation
Asset-backed Revenue Bonds
Series 2007A-1
06-01-47 5.13 6,750,000 4,303,328
San Diego Public Facilities Financing Authority
Revenue Bonds
Series 1999A (NPFGC/FGIC)
05-15-29 5.00 2,630,000 2,647,542
San Francisco City & County Redevelopment Agency
Tax Allocation Bonds
Mission Bay South Redevelopment
Series 2009D
08-01-39 6.63 500,000 525,095
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2005
03-01-32 5.00 1,500,000 1,414,200
08-01-35 5.00 8,000,000 7,414,960
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2007
11-01-37 5.00 3,000,000 2,768,220
12-01-37 5.00 1,700,000 1,568,454
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2008
03-01-27 5.50 1,000,000 1,017,920
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2009
04-01-38 6.00 5,000,000 5,251,600
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2010
03-01-40 5.50 6,000,000 5,956,140
State of California
Unlimited General Obligation Refunding Bonds
Series 2007
08-01-30 4.50 5,550,000 4,826,225
University of California
Revenue Bonds
Series 2009Q
05-15-34 5.00 5,750,000 5,979,195
---------------
Total 64,336,243
- -------------------------------------------------------------------------------------
COLORADO (2.4%)
City & County of Denver
Unlimited General Obligation Bonds
Justice System Facilities & Zoo
Series 2005
08-01-25 5.00 1,000,000 1,064,040
City of Westminster
Revenue Bonds
Post Project
Series 2007D (AGM)
12-01-23 5.00 1,240,000 1,331,450
Colorado Health Facilities Authority
Revenue Bonds
Evangelical Lutheran
Series 2009A
06-01-38 6.13 750,000 753,060
Colorado Health Facilities Authority
Unrefunded Revenue Bonds
Series 2000
12-01-25 6.90 680,000 699,067
Colorado State Board of Governors
Revenue Bonds
Series 2008A (AGM)
03-01-27 5.00 1,250,000 1,310,713
Platte River Power Authority
Revenue Bonds
Series 2009HH
06-01-24 5.00 1,000,000 1,093,890
Regional Transportation District
Refunding Revenue Bonds
Series 2007A
11-01-24 5.25 1,000,000 1,162,390
University of Colorado Hospital Authority
Refunding Revenue Bonds
Series 1997A (AMBAC)
11-15-22 5.25 1,000,000 1,000,130
University of Colorado Hospital Authority
Refunding Revenue Bonds
Series 2009A
11-15-29 6.00 5,000,000 5,226,300
University of Colorado
Revenue Bonds
Series 2006A (AMBAC)
06-01-23 5.00 1,000,000 1,061,530
Western State College
Revenue Bonds
Series 2009
05-15-39 5.00 1,000,000 1,012,370
---------------
Total 15,714,940
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
16 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
DISTRICT OF COLUMBIA (0.3%)
District of Columbia
Refunding Revenue Bonds
2nd Series 2009B
12-01-23 5.00% $2,000,000 $2,204,800
- -------------------------------------------------------------------------------------
FLORIDA (4.7%)
City of Ocala
Revenue Bonds
Series 2007A (NPFGC)
10-01-24 5.00 2,985,000 3,096,430
County of Broward
Revenue Bonds
Series 2001J-I (AMBAC) A.M.T.
10-01-26 5.25 2,000,000 1,961,100
County of Polk
Refunding & Improvement Revenue Bonds
Series 2006 (NPFGC)
12-01-20 5.00 1,040,000 1,080,706
County of St. Johns
Revenue Bonds
Series 2006 (AMBAC)
10-01-26 5.00 1,000,000 1,036,460
Florida Housing Finance Corporation
Revenue Bonds
Homeowner Mortgage
Series 2000-11 (AGM) A.M.T.
01-01-32 5.95 315,000 315,186
Florida Ports Financing Commission
Revenue Bonds
State Transportation Trust Fund
Series 1996 (NPFGC) A.M.T.
06-01-27 5.38 2,500,000 2,499,825
Florida State Board of Education
Revenue Bonds
Series 2007A (AMBAC)
07-01-18 5.00 2,000,000 2,217,600
Marion County Hospital District
Refunding & Improvement Revenue Bonds
Health Systems -- Munroe Regional
Series 2007
10-01-29 5.00 1,000,000 937,240
Marion County Hospital District
Unrefunded Revenue Bonds
Health Systems -- Munroe
Series 1999
10-01-24 5.63 10,000 10,012
Orange County Health Facilities Authority
Revenue Bonds
Orlando Regional Healthcare
Series 2008C
10-01-35 5.25 1,000,000 975,310
Orange County School Board
Certificate of Participation
Series 2005B (AMBAC)
08-01-25 5.00 2,440,000 2,490,166
Reedy Creek Improvement District
Unlimited General Obligation Bonds
Series 2005A (AMBAC)
06-01-25 5.00 5,000,000 5,088,450
Reedy Creek Improvement District
Unrefunded Revenue Bonds
Series 1997-1 (AMBAC)
10-01-19 5.13 230,000 230,209
Sarasota County Public Hospital Board
Refunding Revenue Bonds
Sarasota Memorial Hospital
Series 1998B (NPFGC)
07-01-28 5.50 6,980,000 7,203,779
South Florida Water Management District
Certificate of Participation
Series 2006 (AMBAC)
10-01-26 5.00 1,400,000 1,454,250
---------------
Total 30,596,723
- -------------------------------------------------------------------------------------
GEORGIA (3.2%)
Barnesville-Lamar County Industrial Development Authority
Revenue Bonds
Gordon College Properties
Series 2004A
08-01-25 5.00 1,250,000 1,254,263
Cartersville Development Authority
Refunding Revenue Bonds
Anheuser-Busch Project
Series 2002 A.M.T.
02-01-32 5.95 1,250,000 1,261,000
City of Atlanta
Revenue Bonds
Series 2000B (NPFGC/FGIC) A.M.T.
01-01-30 5.63 2,000,000 2,015,100
City of Atlanta
Revenue Bonds
Series 2004 (AGM)
11-01-25 5.75 1,000,000 1,135,270
Fulton County Development Authority
Revenue Bonds
Georgia Tech Athletic Association
Series 2001 (AMBAC)
10-01-32 5.13 1,270,000 1,184,148
Gainesville & Hall County Hospital Authority
Revenue Bonds
Northeast Georgia Health Care
Series 2010A
02-15-45 5.50 7,500,000 7,284,375
Georgia Housing & Finance Authority
Revenue Bonds
Single Family Mortgage
Sub Series 1999A-2 A.M.T.
06-01-29 5.20 1,615,000 1,615,081
Gwinnett County Hospital Authority
Revenue Bonds
Gwinnett Hospital Systems Incorporated Project
Series 2004B
10-01-29 5.00 1,250,000 1,277,250
Metropolitan Atlanta Rapid Transit Authority
Refunding Revenue Bonds
Series 1992N
07-01-18 6.25 500,000 574,495
Metropolitan Atlanta Rapid Transit Authority
Refunding Revenue Bonds
Series 2007A (AMBAC/FGIC)
07-01-26 5.25 1,000,000 1,149,540
Upper Oconee Basin Water Authority
Refunding Revenue Bonds
Series 2005 (NPFGC)
07-01-24 5.00 1,000,000 1,029,680
Valdosta & Lowndes County Hospital Authority
Revenue Bonds
South Georgia Medical Center Project
Series 2002 (AMBAC)
10-01-27 5.25 1,250,000 1,250,788
---------------
Total 21,030,990
- -------------------------------------------------------------------------------------
IDAHO (0.2%)
Idaho Health Facilities Authority
Revenue Bonds
Trinity Health Group
Series 2008B
12-01-23 6.00 1,000,000 1,103,580
- -------------------------------------------------------------------------------------
ILLINOIS (3.2%)
Illinois Finance Authority
Refunding Revenue Bonds
Swedish Covenant
Series 2010A
08-15-38 6.00 1,500,000 1,487,745
Illinois Finance Authority
Revenue Bonds
Riverside Health System
Series 2009
11-15-35 6.25 4,200,000 4,378,416
Illinois Finance Authority
Revenue Bonds
Rush University Medical Center
Series 2009C
11-01-39 6.63 750,000 799,163
Illinois Finance Authority
Revenue Bonds
Sherman Health System
Series 2007A
08-01-37 5.50 4,250,000 3,748,840
Illinois Finance Authority
Revenue Bonds
Silver Cross & Medical Centers
Series 2009
08-15-38 6.88 8,000,000 8,281,039
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 17
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
ILLINOIS (CONT.)
State of Illinois
Revenue Bonds
Series 2005 (AGM)
06-15-28 5.00% $2,000,000 $2,040,240
---------------
Total 20,735,443
- -------------------------------------------------------------------------------------
INDIANA (1.6%)
County of St. Joseph
Revenue Bonds
Notre Dame Du Lac Project
Series 2009
03-01-36 5.00 5,000,000 5,270,300
Indiana Finance Authority
Refunding Revenue Bonds
Clarian Health Obligation Group
Series 2006B
02-15-33 5.00 1,000,000 937,780
Indiana Finance Authority
Revenue Bonds
Parkview Health System
Series 2009A
05-01-31 5.75 3,000,000 3,067,950
Purdue University
Revenue Bonds
Student Fees
Series 2009X
07-01-23 5.25 1,000,000 1,127,940
---------------
Total 10,403,970
- -------------------------------------------------------------------------------------
KENTUCKY (1.2%)
Kentucky Economic Development Finance Authority
Revenue Bonds
Kings Daughters Medical
Series 2010
02-01-40 5.00 3,650,000(f) 3,523,637
Kentucky Economic Development Finance Authority
Revenue Bonds
Owensboro Medical Health System
Series 2010A
03-01-45 6.50 4,575,000 4,512,551
---------------
Total 8,036,188
- -------------------------------------------------------------------------------------
LOUISIANA (4.3%)
Calcasieu Parish Industrial Development Board Incorporated
Revenue Bonds
Conoco Incorporated Project
Series 1996 A.M.T.
12-01-26 5.75 2,500,000 2,500,875
City of East Baton Rouge
Refunding Revenue Bonds
Series 2008A-2 (AGM)
08-01-24 5.00 900,000 969,678
City of East Baton Rouge
Revenue Bonds
Road and Street Improvements
Series 2009
08-01-25 5.00 250,000 267,170
City of New Orleans
Unlimited General Obligation Public Improvement Bonds
Series 2002 (FGIC)
12-01-31 5.35 2,250,000 2,221,403
East Baton Rouge Mortgage Finance Authority
Refunding Revenue Bonds
Series 1993B (GNMA/FNMA)
10-01-25 5.40 355,000 355,234
East Baton Rouge Sewerage Commission
Revenue Bonds
Series 2009A
02-01-34 5.25 1,000,000 1,050,390
Jefferson Parish Hospital Service District #2
Revenue Bonds
Series 1998 (AGM)
07-01-28 5.00 1,000,000 951,630
Jefferson Sales Tax District
Refunding Revenue Bonds
Series 2009B
12-01-22 4.50 1,000,000 1,017,370
Jefferson Sales Tax District
Revenue Bonds
Series 2007B (AMBAC)
12-01-20 5.25 1,000,000 1,097,900
Lafayette Consolidated Government
Refunding Revenue Bonds
Series 2006C (AMBAC)
05-01-21 5.00 1,000,000 1,069,640
Lafayette Parish School Board
Refunding Revenue Bonds
Public Schools
Series 2008 (AGM)
04-01-19 5.00 1,000,000 1,115,300
Louisiana Housing Finance Agency
Revenue Bonds
Home Ownership Program
Series 2008A (GNMA/FNMA/FHLMC)
12-01-23 4.88 960,000 1,000,580
Louisiana Public Facilities Authority
Refunding Revenue Bonds
Southern Baptist Hospital Incorporated Project
Series 1986 Escrowed to Maturity
05-15-12 8.00 2,865,000 3,083,714
Louisiana Public Facilities Authority
Refunding Revenue Bonds
Tulane University Project
Series 2007A-1 (NPFGC)
02-15-26 5.00 1,000,000 1,038,200
Louisiana Public Facilities Authority
Revenue Bonds
Hurricane Recovery Program
Series 2007 (AMBAC)
06-01-20 5.00 1,000,000 1,045,420
Louisiana State Citizens Property Insurance Corporation
Revenue Bonds
Series 2009C-4
06-01-24 6.13 1,000,000 1,099,370
Louisiana State University & Agricultural & Mechanical College
Revenue Bonds
Auxiliary
Series 2007 (AGM)
07-01-27 5.00 1,000,000 1,045,040
New Orleans Aviation Board
Revenue Bonds
Consolidated Rental Car
Series 2009A
01-01-40 6.50 4,650,000 4,799,544
Port New Orleans Board of Commissioners
Revenue Bonds
Series 2002 (NPFGC/FGIC) A.M.T.
04-01-32 5.00 1,250,000 1,116,613
St. Tammany Parish Wide School District #12
Unlimited General Obligation Bonds
Series 2008
03-01-23 4.50 1,000,000 1,035,470
---------------
Total 27,880,541
- -------------------------------------------------------------------------------------
MARYLAND (2.4%)
City of Baltimore
Refunding Revenue Bonds
Wastewater Projects
Series 2002A (NPFGC/FGIC)
07-01-42 5.13 2,000,000 2,017,380
City of Baltimore
Revenue Bonds
Consolidated Coal Sales
Series 1984A
10-01-11 6.50 2,500,000 2,506,875
County of Anne Arundel
Refunding Tax Allocation Bonds
Arundel Mills Project
Series 2004
07-01-24 5.13 1,205,000 1,310,016
County of Baltimore
Revenue Bonds
Catholic Health Initiatives
Series 2006A
09-01-26 5.00 1,500,000 1,562,550
Maryland Health & Higher Educational Facilities Authority
Refunding Revenue Bonds
Johns Hopkins University
Series 2001B
07-01-41 5.00 2,000,000 2,016,480
Maryland Health & Higher Educational Facilities Authority
Revenue Bonds
Carroll County General Hospital
Series 2002
07-01-37 6.00 2,250,000 2,288,025
Maryland State Department of Transportation
Certificate of Participation
Series 2000 A.M.T.
10-15-25 5.50 2,375,000 2,385,688
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
18 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
MARYLAND (CONT.)
Maryland State Department of Transportation
Revenue Bonds
Series 2008
02-15-21 5.00% $1,000,000 $1,115,950
Morgan State University
Revenue Bonds
Series 2003A (NPFGC/FGIC)
07-01-32 5.00 450,000 454,127
---------------
Total 15,657,091
- -------------------------------------------------------------------------------------
MASSACHUSETTS (6.4%)
City of Newton Massachusetts
Limited General Obligation Bonds
State Qualified School
Series 2009A
04-01-25 4.13 2,295,000 2,368,738
Commonwealth of Massachusetts
Limited General Obligation Bonds
Consolidated Loan
Series 2009C
07-01-38 4.50 1,500,000 1,485,690
Martha's Vineyard Land Bank
Revenue Bonds
Series 2002 (AMBAC)
05-01-32 5.00 3,000,000 3,036,600
Massachusetts Bay Transportation Authority
Revenue Bonds
Series 2005A
07-01-24 5.00 1,000,000 1,134,590
Massachusetts Development Finance Agency
Revenue Bonds
Boston College
Series 2009Q-2
07-01-29 5.00 1,455,000 1,535,374
Massachusetts Development Finance Agency
Revenue Bonds
WGBH Educational Foundation
Series 2002A (AMBAC)
01-01-42 5.75 4,000,000 4,236,399
Massachusetts Educational Financing Authority
Revenue Bonds
Issue I
Series 2010B A.M.T.
01-01-31 5.70 9,000,000 9,025,830
Massachusetts Health & Educational Facilities Authority
Revenue Bonds
Berklee College of Music
Series 2007A
10-01-21 5.00 1,500,000 1,588,395
Massachusetts Health & Educational Facilities Authority
Revenue Bonds
Tufts University
Series 2009M
02-15-28 5.50 1,000,000 1,170,510
Massachusetts Health & Educational Facilities Authority
Unrefunded Revenue Bonds
South Shore
Series 1999F
07-01-29 5.75 1,845,000 1,844,816
Massachusetts Housing Finance Agency
Revenue Bonds
Series 1999A (AMBAC) A.M.T.
07-01-30 5.50 190,000 187,925
Massachusetts Housing Finance Agency
Revenue Bonds
Single Family
Series 2008-139
12-01-28 5.13 1,000,000 1,026,440
Massachusetts School Building Authority
Revenue Bonds
Series 2005A (AGM)
08-15-23 5.00 6,000,000 6,379,440
Massachusetts State Water Pollution Abatement
Revenue Bonds
Pool Program
Series 1999-5
08-01-29 5.50 1,000,000 1,005,510
Massachusetts Water Resources Authority
Refunding Revenue Bonds
Series 2005A (NPFGC)
08-01-24 5.25 3,000,000 3,269,550
Town of Braintree
Limited General Obligation Bonds
Municipal Purpose Loan
Series 2009
05-15-27 5.00 2,000,000 2,148,360
---------------
Total 41,444,167
- -------------------------------------------------------------------------------------
MICHIGAN (3.5%)
Capital Region Airport Authority
Refunding Revenue Bonds
Series 2002B (NPFGC) A.M.T.
07-01-21 5.25 2,000,000 2,000,880
Charter Township of Canton
Limited General Obligation Bonds
Capital Improvement
Series 2007 (AGM)
04-01-21 5.00 530,000 569,209
City of Detroit
Prerefunded Revenue Bonds
2nd Lien
Series 2005A (NPFGC)
07-01-30 5.00 2,295,000 2,638,906
City of Detroit
Revenue Bonds
Sr Lien
Series 2005A (NPFGC/FGIC)
07-01-27 5.00 1,290,000 1,269,399
Grand Traverse County Hospital Finance Authority
Unrefunded Revenue Bonds
Munson
Series 1998A (AMBAC)
07-01-28 5.00 110,000 104,801
Kalamazoo Public Schools
Unlimited General Obligation Refunding Bonds
Building & Site
Series 2006 (AGM)
05-01-24 5.00 1,285,000 1,341,244
Michigan Municipal Bond Authority
Revenue Bonds
Drinking Water State Revolving Fund
Series 2004
10-01-22 5.00 3,850,000 4,178,404
Michigan State Hospital Finance Authority
Refunding Revenue Bonds
Oakwood Obligated Group
Series 1998A (AGM)
08-15-25 5.13 1,000,000 1,001,850
Michigan State Hospital Finance Authority
Refunding Revenue Bonds
Sparrow Obligated Group
Series 2005 (NPFGC)
11-15-26 5.00 1,500,000 1,461,915
Michigan State Hospital Finance Authority
Revenue Bonds
Trinity Health Center Group
Series 2006A
12-01-26 5.00 4,000,000 4,010,960
State of Michigan
Refunding Revenue Bonds
Series 2005 (AGM)
05-15-22 5.25 2,000,000 2,327,980
State of Michigan
Refunding Revenue Bonds
Series 2006 (AGM)
05-15-24 5.00 2,000,000 2,100,140
---------------
Total 23,005,688
- -------------------------------------------------------------------------------------
MINNESOTA (2.1%)
City of St. Louis Park
Refunding Revenue Bonds
Park Nicollet Health Services
Series 2009
07-01-39 5.75 13,500,000 13,422,915
- -------------------------------------------------------------------------------------
MISSISSIPPI (0.3%)
Mississippi Business Finance Corporation
Revenue Bonds
Series 2009A
05-01-24 4.70 1,250,000 1,222,737
05-01-37 5.00 815,000 787,975
---------------
Total 2,010,712
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 19
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
MISSOURI (3.0%)
Cape Girardeau County Industrial Development Authority
Revenue Bonds
St. Francis Medical Center
Series 2009
06-01-39 5.75% $500,000 $507,065
City of St. Louis
Refunding Revenue Bonds
Lambert International Airport
Series 2007A (AGM)
07-01-23 5.00 1,000,000 1,024,040
City of St. Louis
Revenue Bonds
Lambert-St. Louis International
Series 2009A-1
07-01-34 6.63 300,000 316,833
Clackamas County School District #7J Lake Oswego
Unlimited General Obligation Refunding Bonds
Series 2005 (AGM)
06-01-23 5.25 1,000,000 1,172,450
County of Boone
Revenue Bonds
Boone Hospital Center
Series 2008
08-01-28 5.75 500,000 512,925
Hannibal Industrial Development Authority
Refunding Revenue Bonds
Series 2006
03-01-22 5.00 1,000,000 960,040
Kansas City Metropolitan Community College Building Corporation
Refunding Revenue Bonds
Junior College Improvement and Leasehold
Series 2006 (NPFGC/FGIC)
07-01-17 5.00 1,000,000 1,100,890
Metropolitan St. Louis Sewer District
Revenue Bonds
Series 2004A (NPFGC)
05-01-24 5.00 2,800,000 2,965,788
Missouri Development Finance Board
Revenue Bonds
Procter & Gamble Paper Products
Series 1999 A.M.T.
03-15-29 5.20 2,000,000 2,033,820
Missouri State Board of Public Buildings
Revenue Bonds
Series 2001A
05-01-26 5.13 1,750,000 1,791,003
Missouri State Environmental Improvement & Energy Resources Authority
Unrefunded Revenue Bonds
Drinking Water
Series 2002
07-01-23 5.00 265,000 284,024
Missouri State Health & Educational Facilities Authority
Refunding Revenue Bonds
Lester E. Cox Medical Center
Series 1993I (NPFGC)
06-01-15 5.25 2,500,000 2,700,725
Missouri State Health & Educational Facilities Authority
Revenue Bonds
Washington University
Series 2007B
01-15-21 4.20 1,000,000 1,052,740
St. Charles Community College
Unlimited General Obligation Refunding Bonds
Series 2009
02-15-26 4.00 500,000 509,910
St. Louis Industrial Development Authority
Refunding Revenue Bonds
Anheuser-Busch Company Project
Series 1991
05-01-16 6.65 1,250,000 1,441,088
University of Missouri
Revenue Bonds
System Facilities
Series 2006A
11-01-26 5.00 1,000,000 1,051,090
---------------
Total 19,424,431
- -------------------------------------------------------------------------------------
NEVADA (0.6%)
County of Clark
Revenue Bonds
Las Vegas-McCarran International Airport
Series 2010A
07-01-34 5.13 4,250,000 4,188,715
- -------------------------------------------------------------------------------------
NEW HAMPSHIRE (0.8%)
New Hampshire Business Finance Authority
Revenue Bonds
Elliot Hospital Obligation Group
Series 2009A
10-01-39 6.13 2,750,000 2,772,633
New Hampshire Health & Education Facilities Authority
Revenue Bonds
Dartmouth-Hitchcock
Series 2009
08-01-38 6.00 2,500,000 2,636,750
---------------
Total 5,409,383
- -------------------------------------------------------------------------------------
NEW JERSEY (3.3%)
New Jersey Economic Development Authority
Refunding Revenue Bonds
Seeing Eye Incorporated Project
Series 2005 (AMBAC)
12-01-24 5.00 1,000,000 972,580
New Jersey Economic Development Authority
Revenue Bonds
New Jersey-American Water Company Incorporated
Series 1997B (NPFGC/FGIC) A.M.T.
05-01-32 5.38 8,000,000 7,373,760
New Jersey Educational Facilities Authority
Refunding Revenue Bonds
Stevens Institute of Technology
Series 2007A
07-01-22 5.25 1,250,000 1,296,013
New Jersey Educational Facilities Authority
Revenue Bonds
Princeton University
Series 2007E
07-01-28 5.00 1,250,000 1,351,612
New Jersey Educational Facilities Authority
Revenue Bonds
William Paterson University
Series 2008C
07-01-24 5.00 1,000,000 1,067,450
New Jersey Environmental Infrastructure Trust
Revenue Bonds
Environmental Infrastructure
Series 2005A (AMBAC)
09-01-22 5.00 1,230,000 1,346,801
New Jersey Health Care Facilities Financing Authority
Revenue Bonds
Hackensack University Medical Center
Series 2000
01-01-34 6.00 2,450,000 2,457,570
New Jersey Health Care Facilities Financing Authority
Revenue Bonds
Meridian Health Systems Obligation Group
Series 1999 (AGM)
07-01-24 5.38 2,255,000 2,258,022
New Jersey Health Care Facilities Financing Authority
Revenue Bonds
Virtua Health
Series 2009
07-01-33 5.75 750,000 783,278
New Jersey Health Care Facilities Financing Authority
Unrefunded Revenue Bonds
Atlantic City Medical
Series 2002
07-01-25 5.75 1,110,000 1,132,622
New Jersey Housing & Mortgage Finance Agency
Revenue Bonds
Series 2000A-1 (AGM) A.M.T.
11-01-31 6.35 1,500,000 1,501,454
New Jersey Housing & Mortgage Finance Agency
Revenue Bonds
Series 2000E-1 (AGM)
05-01-25 5.75 215,000 215,759
---------------
Total 21,756,921
- -------------------------------------------------------------------------------------
NEW MEXICO (1.0%)
New Mexico Hospital Equipment Loan Council
Revenue Bonds
Presbyterian Healthcare
Series 2009
08-01-39 5.00 6,500,000 6,420,700
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
20 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
NEW YORK (4.0%)
Brooklyn Arena Local Development Corporation
Revenue Bonds
Barclays Center Project
Series 2009
07-15-30 6.00% $1,500,000 $1,535,970
Erie County Industrial Development Agency
Revenue Bonds
Buffalo City School District
Series 2009A
05-01-31 5.00 500,000 517,700
New York City Municipal Water Finance Authority
Revenue Bonds
Series 2005C (NPFGC)
06-15-27 5.00 8,000,000 8,364,480
New York City Transitional Finance Authority
Revenue Bonds
Fiscal 2009
Series 2009S-4
01-15-25 5.13 2,000,000 2,127,100
New York State Dormitory Authority
Revenue Bonds
North Shore-Long Island Jewish
Series 2009A
05-01-37 5.50 2,000,000 2,024,140
New York State Dormitory Authority
Revenue Bonds
Rockefeller University
Series 2009C
07-01-40 5.00 2,500,000 2,638,100
New York State Environmental Facilities Corporation
Revenue Bonds
Revolving Funds
New York City Municipal Water
Series 2008A
06-15-28 5.00 1,000,000 1,075,100
Port Authority of New York & New Jersey
Revenue Bonds
Consolidated 144th
Series 1997
10-01-28 5.00 1,000,000 1,056,160
Port Authority of New York & New Jersey
Revenue Bonds
JFK International Air Terminal #6 Special Project
Series 1997 (NPFGC) A.M.T.
12-01-22 5.75 6,500,000 6,491,420
---------------
Total 25,830,170
- -------------------------------------------------------------------------------------
NORTH CAROLINA (1.9%)
City of High Point
Revenue Bonds
Series 2008 (AGM)
11-01-28 5.00 350,000 370,769
County of Cumberland
Refunding Certification of Participation
Improvement Projects
Series 2009B-1
12-01-24 5.00 500,000 540,650
County of Forsyth Certification of Participation
Series 2005
02-01-26 5.00 750,000 781,620
North Carolina Capital Facilities Finance Agency
Revenue Bonds
Duke University Project
Series 2009B
10-01-38 5.00 300,000 315,306
North Carolina Capital Facilities Finance Agency
Revenue Bonds
Wake Forest University
Series 2009
01-01-39 4.50 300,000 298,542
North Carolina Eastern Municipal Power Agency
Refunding Revenue Bonds
Series 2005A (AMBAC)
01-01-20 5.25 6,000,000 6,331,020
North Carolina Eastern Municipal Power Agency
Revenue Bonds
Series 2009A
01-01-26 5.50 300,000 318,801
North Carolina Housing Finance Agency
Revenue Bonds
Home Ownership
Series 2000A-8 A.M.T.
07-01-28 6.40 120,000 123,520
North Carolina Municipal Power Agency #1
Revenue Bonds
Series 1986 Escrowed to Maturity
01-01-20 5.00 1,750,000 2,000,513
State of North Carolina
Revenue Bonds
Annual Appropriation
Series 2009A
05-01-27 5.00 305,000 331,419
Wake County Industrial Facilities & Pollution Control Financing Authority
Refunding Revenue Bonds
Carolina Power & Light Company Project
Series 2002
02-01-17 5.38 1,000,000 1,059,670
---------------
Total 12,471,830
- -------------------------------------------------------------------------------------
NORTH DAKOTA (0.4%)
County of Ward
Revenue Bonds
Trinity Obligated Group
Series 2006
07-01-25 5.13 1,000,000 893,940
07-01-29 5.13 1,840,000 1,621,150
---------------
Total 2,515,090
- -------------------------------------------------------------------------------------
OHIO (10.7%)
Buckeye Tobacco Settlement Financing Authority
Asset-backed Senior Turbo Revenue Bonds
Series 2007A-2
06-01-47 5.88 6,125,000 4,343,789
City of Avon
Limited General Obligation Bonds
Series 2009B
12-01-38 5.00 1,150,000 1,184,995
City of Cincinnati
Unlimited General Obligation Bonds
Various Purpose
Series 2008A
12-01-23 5.00 875,000 959,149
City of Cleveland
Revenue Bonds
Series 2007P
01-01-24 5.00 2,000,000 2,140,280
City of Cleveland
Revenue Bonds
Series 2008B-1 (NPFGC)
11-15-28 5.00 500,000 514,770
City of Columbus
Revenue Bonds
Systems
Series 2008A
06-01-27 5.00 4,000,000 4,294,440
City of Columbus
Unlimited General Obligation Bonds
Various Purpose
Series 2006A
12-15-21 5.00 1,435,000 1,573,462
City of Strongsville
Limited General Obligation Bonds
Various Purpose
Series 2009
12-01-33 4.63 500,000 496,770
12-01-34 4.63 1,000,000 989,060
Columbus City School District
Unlimited General Obligation Bonds
School Facilities Construction & Improvement
Series 2009
12-01-33 4.75 1,000,000 1,012,550
County of Franklin
Revenue Bonds
Children's Hospital Project
Series 2005 (NPFGC/FGIC)
05-01-25 5.00 1,000,000 1,010,680
County of Hamilton
Refunding Revenue Bonds
Sub Series 2006A (AGM/AMBAC)
12-01-32 5.00 1,000,000 1,026,720
County of Hamilton
Refunding Revenue Bonds
Sub Series 2006A (AMBAC)
12-01-26 5.00 1,000,000 1,024,410
County of Hamilton
Revenue Bonds
Improvement Greater Cincinnati Metropolitan
Series 2007A
12-01-25 5.00 3,425,000 3,674,991
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 21
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
OHIO (CONT.)
County of Hamilton
Revenue Bonds
Metropolitan Sewer District
Series 2006A (NPFGC)
12-01-26 5.00% $1,000,000 $1,059,160
County of Montgomery
Limited General Obligation
Refunding & Improvement Bonds
Various Purpose
Series 2005 (NPFGC)
12-01-24 5.00 2,600,000 2,744,898
Ohio Higher Educational Facility Commission
Revenue Bonds
Kenyon College Project
Series 2010
07-01-44 5.00 10,000,000 10,079,099
Ohio Housing Finance Agency
Revenue Bonds
Mortgage-Backed Securities Program
Series 2008F (GNMA/FNMA/FHLMC)
09-01-28 5.25 1,040,000 1,082,286
Ohio Housing Finance Agency
Revenue Bonds
Residential
Series 1997B (GNMA) A.M.T.
09-01-29 5.40 705,000 706,290
Ohio State Turnpike Commission
Refunding Revenue Bonds
Series 1998A (NPFGC/FGIC)
02-15-26 5.50 3,000,000 3,482,520
Ohio State Turnpike Commission
Revenue Bonds
Series 2001 (AMBAC)
02-15-31 5.25 1,500,000 1,528,920
Ohio State University
Revenue Bonds
Series 2002A
12-01-31 5.13 1,000,000 1,029,760
Ohio State University
Revenue Bonds
Series 2005A
06-01-25 5.00 3,000,000 3,178,260
Ohio State Water Development Authority
Refunding Revenue Bonds
Drinking Water Fund
Series 2005
12-01-21 5.25 3,890,000 4,574,835
12-01-22 5.25 2,625,000 3,098,130
Ohio State Water Development Authority
Revenue Bonds
Series 1983 Escrowed to Maturity
12-01-10 9.38 55,000 58,076
Ohio State Water Development Authority
Revenue Bonds
Sewer Facilities Anheuser-Busch Project
Series 1999 A.M.T.
08-01-38 6.00 1,000,000 1,000,190
State of Ohio
Refunding Revenue Bonds
Case Western Reserve
Series 2008C
12-01-29 5.00 2,000,000 2,082,540
State of Ohio
Revenue Bonds
Denison University 2007 Project
Series 2007
11-01-23 5.00 4,000,000 4,361,160
State of Ohio
Revenue Bonds
Mental Health Capital Facilities
2nd Series 2003B (AGM)
06-01-13 5.00 2,230,000 2,486,383
State of Ohio
Revenue Bonds
University of Dayton Project
Series 2009
12-01-24 5.50 3,000,000 3,246,690
---------------
Total 70,045,263
- -------------------------------------------------------------------------------------
OREGON (2.9%)
Benton County Hospital Facilities Authority
Refunding Revenue Bonds
Samaritan Health Services Project
Series 1998
10-01-28 5.13 655,000 631,865
City of Salem
Limited General Obligation Bonds
Series 2009
06-01-27 4.38 1,000,000 1,007,840
Clackamas County Hospital Facility Authority
Refunding Revenue Bonds
Legacy Health System
Series 2001
05-01-21 5.25 1,000,000 1,022,780
Clackamas County Service District #1
Revenue Bonds
Series 2009A
12-01-25 4.25 1,690,000 1,729,445
Multnomah County Hospital Facilities Authority
Revenue Bonds
Providence Health System
Series 2004
10-01-24 5.25 1,000,000 1,038,080
Oregon Health & Science University
Revenue Bonds
Series 2009A
07-01-39 5.75 2,000,000 2,099,259
Oregon Health & Science University
Unrefunded Revenue Bonds
Series 1995A (NPFGC)
07-01-28 5.25 390,000 389,981
Oregon State Department of Administrative Services
Certificate of Participation
Series 2001B (AMBAC)
05-01-26 5.00 2,000,000 2,035,520
Oregon State Facilities Authority
Revenue Bonds
Linfield College Project
Series 1998A
10-01-23 5.25 2,000,000 1,988,540
Oregon State Facilities Authority
Revenue Bonds
Linfield College Project
Series 2005A
10-01-25 5.00 750,000 749,198
Oregon State Facilities Authority
Revenue Bonds
Willamette University Projects
Series 2007A
10-01-27 5.00 1,500,000 1,501,860
Oregon State Housing & Community Services Department
Revenue Bonds
Series 2000A A.M.T.
07-01-42 6.05 2,000,000 2,003,400
Oregon State Housing & Community Services Department
Revenue Bonds
Single Family Mortgage Program
Series 2005A
07-01-20 4.40 560,000 569,083
Polk, Marion & Benton School District #13J
Unlimited General Obligation Bonds
Central School District
Series 2009A
06-15-29 4.38 1,300,000 1,295,736
Umatilla County Hospital Facility Authority
Revenue Bonds
Catholic Health Initiatives
Series 2002A Escrowed to Maturity
03-01-32 5.50 1,000,000 1,081,600
---------------
Total 19,144,187
- -------------------------------------------------------------------------------------
PENNSYLVANIA (3.4%)
Allegheny County Higher Education Building Authority
Revenue Bonds
Duquesne University
Series 2008
03-01-28 5.00 490,000 501,559
Allegheny County Hospital Development Authority
Revenue Bonds
University of Pittsburgh Medical Center
Series 2009
08-15-39 5.63 1,000,000 1,015,570
Berks County Municipal Authority
Revenue Bonds
Reading Hospital Medical Center Project
Series 1993 (NPFGC)
10-01-14 5.70 855,000 932,036
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
22 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
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 5.25% $350,000 $395,423
Cumberland County Municipal Authority
Revenue Bonds
Aicup Financing Program-Dickson College
Series 2009
11-01-39 5.00 1,200,000 1,165,668
Delaware County Industrial Development Authority
Revenue Bonds
Philadelphia Suburban Water Facilities
Series 2001 (AMBAC) A.M.T.
10-01-31 5.35 3,000,000 3,002,070
Delaware Valley Regional Financial Authority
Revenue Bonds
Series 2006C
07-01-27 7.75 1,000,000 1,337,630
Northampton County General Purpose Authority
Revenue Bonds
County Agreement
Series 2001 (AGM)
10-01-30 5.25 1,000,000 1,046,670
Pennsylvania Economic Development Financing Authority
Revenue Bonds
Proctor & Gamble Paper Project
Series 2001 A.M.T.
03-01-31 5.38 1,000,000 1,023,390
Pennsylvania Higher Educational Facilities Authority
Revenue Bonds
Thomas Jefferson University
Series 2010
03-01-40 5.00 3,500,000 3,538,044
Pennsylvania Higher Educational Facilities Authority
Unrefunded Revenue Bonds
Drexel University
Series 1997 (NPFGC)
05-01-22 5.75 1,050,000 1,053,497
Pennsylvania State University
Revenue Bonds
Series 2005
09-01-24 5.00 1,250,000 1,330,763
Philadelphia Municipal Authority
Revenue Bonds
Lease
Series 2009
04-01-34 6.50 200,000 212,590
Philadelphia Redevelopment Authority
Revenue Bonds
Sub Series 1986B Escrowed to Maturity (GNMA)
06-01-17 9.00 450,000 629,357
Washington County Industrial Development Authority
Revenue Bonds
Washington Jefferson College
Series 2010
11-01-36 5.00 4,850,000 4,814,546
---------------
Total 21,998,813
- -------------------------------------------------------------------------------------
PUERTO RICO (2.1%)(e)
Puerto Rico Electric Power Authority
Refunding Revenue Bonds
Series 2007UU (AGM)
07-01-23 5.00 1,000,000 1,041,240
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2003NN (NPFGC)
07-01-21 5.25 3,500,000 3,715,180
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2008WW
07-01-23 5.38 2,500,000 2,610,625
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2010XX
07-01-40 5.25 3,000,000(f) 2,959,440
Puerto Rico Highway & Transportation Authority
Revenue Bonds
Series 2003AA (NPFGC)
07-01-20 5.50 500,000 523,290
Puerto Rico Industrial Tourist Educational Medical & Environmental Central Facilities
Finance Authority
Revenue Bonds
Intermediate American University
Series 1998A (NPFGC)
10-01-22 5.00 2,500,000 2,434,975
Puerto Rico Port Authority
Revenue Bonds
Series 1991D (FGIC) A.M.T.
07-01-14 7.00 630,000 631,877
---------------
Total 13,916,627
- -------------------------------------------------------------------------------------
SOUTH CAROLINA (7.4%)
City of Rock Hill
Refunding & Improvement Revenue Bonds
Series 2003A (AGM)
01-01-30 5.00 4,000,000 4,031,360
Coastal Carolina University
Unrefunded Revenue Bonds
Series 1999 (AMBAC)
06-01-26 5.30 1,810,000 1,825,349
County of Berkeley
Unlimited General Obligation
Refunding & Improvement Bonds
Series 2003 (AGM)
09-01-28 5.00 4,000,000 4,111,760
County of Berkeley
Unrefunded Revenue Bonds
Series 2003 (NPFGC)
06-01-23 5.25 245,000 257,610
County of Georgetown
Refunding Revenue Bonds
International Paper Company Project
Series 2000A
03-15-14 5.95 1,000,000 1,064,310
Grand Strand Water & Sewer Authority
Revenue Bonds
Series 2001 (AGM)
06-01-31 5.00 4,000,000 4,046,360
Horry County School District
Unlimited General Obligation Bonds
Series 2002A
03-01-22 5.13 2,760,000 2,986,155
Lexington County Health Services District Incorporated
Refunding & Improvement Revenue Bonds
Series 1997 (AGM)
11-01-26 5.13 2,000,000 2,005,560
Lexington County Health Services District Incorporated
Refunding Revenue Bonds
Series 2007
11-01-20 5.00 1,000,000 1,030,490
Piedmont Municipal Power Agency
Refunding Revenue Bonds
Series 1991 (NPFGC/FGIC)
01-01-21 6.25 1,250,000 1,460,313
South Carolina Jobs-Economic Development Authority
Refunding & Improvement Revenue Bonds
Palmetto Health
Series 2009
08-01-39 5.75 2,350,000 2,291,297
South Carolina Jobs-Economic Development Authority
Unrefunded Revenue Bonds
Bon Secours
Series 2002B
11-15-30 5.63 3,165,000 3,132,401
South Carolina State Housing Finance & Development Authority
Revenue Bonds
Series 1999A-2 (AGM) A.M.T.
07-01-29 5.40 545,000 545,114
South Carolina State Ports Authority
Revenue Bonds
Series 1998 (AGM) A.M.T.
07-01-26 5.30 10,000,000 10,021,600
South Carolina State Public Service Authority
Refunding Revenue Bonds
Series 2005A (NPFGC/FGIC)
01-01-21 5.25 5,000,000 5,424,749
South Carolina State Public Service Authority
Revenue Bonds
Santee Cooper
Series 2006A (NPFGC)
01-01-27 5.00 2,600,000 2,729,506
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 23
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman National Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
SOUTH CAROLINA (CONT.)
South Carolina State Public Service Authority
Revenue Bonds
Santee Cooper
Series 2008A
01-01-28 5.38% $250,000 $274,378
South Carolina State Public Service Authority
Revenue Bonds
Series 2007A (AMBAC)
01-01-18 5.00 1,000,000 1,110,370
---------------
Total 48,348,682
- -------------------------------------------------------------------------------------
TEXAS (4.4%)
Bexar County Health Facilities Development Corporation
Revenue Bonds
Army Retirement Residence Project
Series 2010
07-01-45 6.20 1,100,000 1,104,004
City of Austin
Refunding Revenue Bonds
Series 2006A (AMBAC)
11-15-20 5.00 5,440,000 5,820,419
City of Dallas
Limited General Obligation Bonds
Series 2005
02-15-25 5.00 820,000 859,877
City of Houston
Revenue Bonds
Sub Lien
Series 2000A (AGM) A.M.T.
07-01-30 5.63 3,000,000 3,001,620
City of San Antonio
Prerefunded Revenue Bonds
Series 1997 Escrowed to Maturity
02-01-20 5.50 1,055,000 1,275,421
Dallas-Fort Worth International Airport Facilities Improvement
Revenue Bonds
Series 2000A (NPFGC/FGIC) A.M.T.
11-01-30 5.75 5,000,000 5,003,800
Harris County Health Facilities Development Corporation
Revenue Bonds
St. Luke's Episcopal Hospital Project
Series 1991 Escrowed to Maturity
02-15-21 6.75 2,000,000 2,005,840
Potter County Industrial Development Corporation
Refunding Revenue Bonds
Southwestern Public Service Company Project
Series 1996 (AMBAC)
09-01-16 5.75 4,750,000 4,768,478
University of Texas
Refunding Revenue Bonds
Series 2007B
07-01-23 5.25 1,000,000 1,163,990
Uptown Development Authority
Tax Allocation Bonds
Infrastructure Improvement Facilities
Series 2009
09-01-29 5.50 500,000 494,100
West Harris County Regional Water Authority
Revenue Bonds
Series 2009
12-15-35 5.00 3,000,000 2,982,600
---------------
Total 28,480,149
- -------------------------------------------------------------------------------------
UTAH (0.3%)
Utah Transit Authority
Revenue Bonds
Series 2008A
06-15-25 5.00 2,000,000 2,178,760
- -------------------------------------------------------------------------------------
VIRGINIA (0.3%)
Virginia Resources Authority
Revenue Bonds
State Revolving Fund
Series 2009
10-01-26 5.00 1,500,000 1,652,475
- -------------------------------------------------------------------------------------
WASHINGTON (1.0%)
Chelan County Public Utility District #1
Revenue Bonds
Chelan Hydro
Series 2001B (NPFGC) A.M.T.
01-01-36 5.60 2,500,000 2,504,475
Washington Health Care Facilities Authority
Revenue Bonds
Overlake Hospital Medical Center
Series 2010
07-01-30 5.50 3,000,000(f) 2,967,240
Washington Higher Education Facilities Authority
Refunding Revenue Bonds
Whitworth University Project
Series 2009
10-01-40 5.63 1,050,000 1,037,180
---------------
Total 6,508,895
- -------------------------------------------------------------------------------------
WISCONSIN (4.0%)
City of La Crosse
Refunding Revenue Bonds
Northern States Power Company Project
Series 1996 A.M.T.
11-01-21 6.00 6,000,000 6,115,079
Monroe Redevelopment Authority
Revenue Bonds
Monroe Clinic Incorporated
Series 2009
02-15-39 5.88 5,000,000 5,032,200
Wisconsin Health & Educational Facilities Authority
Revenue Bonds
Aurora Health Care Incorporated
Series 2010A
04-15-39 5.63 1,375,000 1,356,561
Wisconsin Health & Educational Facilities Authority
Revenue Bonds
Meriter Hospital Incorporated
Series 2009
12-01-38 6.00 5,225,000 5,395,439
Wisconsin Health & Educational Facilities Authority
Revenue Bonds
Prohealth Care Incorporated Obligation Group
Series 2009
02-15-32 6.63 1,000,000 1,041,850
02-15-39 6.63 6,725,000 7,245,111
---------------
Total 26,186,240
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $629,427,161) $644,857,048
- -------------------------------------------------------------------------------------
<Caption>
MUNICIPAL NOTES (0.4%)
AMOUNT
ISSUE EFFECTIVE PAYABLE AT
DESCRIPTION(B,C,D) YIELD MATURITY VALUE(a)
CALIFORNIA (0.4%)
City of Santa Clara
Subordinated Revenue Bonds
V.R.D.N. Series 2008A (Bank of America)
07-01-34 0.28% $2,850,000 $2,850,000
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL NOTES
(Cost: $2,850,000) $2,850,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (--%)
SHARES VALUE(a)
JPMorgan Tax-Free Money Market Fund 51,449 $51,449
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $51,449) $51,449
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $632,328,610)(g) $647,758,497
=====================================================================================
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
24 SELIGMAN MUNICIPAL FUNDS -- 2010 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 of the issue:
<Table>
ACA -- ACA Financial 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
</Table>
(c) The following abbreviations may be used in the portfolio descriptions:
<Table>
A.M.T. -- Alternative Minimum Tax -- At March 31, 2010, the value
of securities subject to alternative minimum tax
represented 12.26% 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
</Table>
(d) The Fund is entitled to receive principal and interest from the party, if
indicated in parentheses, after a day or a week's notice or upon maturity.
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, 2010.
(e) Municipal obligations include debt obligations issued by or on behalf of
states, territories, possessions, or sovereign nations within the
territorial boundaries of the United States. Municipal securities
represented 2.13% of net assets at March 31, 2010.
(f) At March 31, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$9,409,653. See Note 2 to the financial statements.
(g) At March 31, 2010, the cost of securities for federal income tax purposes
was approximately $632,329,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $19,241,000
Unrealized depreciation (3,812,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $15,429,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 25
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.
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 a valuation model may include, but are not limited
to, financial statement analysis, 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, 2010:
<Table>
<Caption>
FAIR VALUE AT MARCH 31, 2010
----------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ---------------------------------------------------------------------------------------------------------------
Bonds
Municipal Bonds $-- $644,857,048 $-- $644,857,048
- ---------------------------------------------------------------------------------------------------------------
Total Bonds -- 644,857,048 -- 644,857,048
- ---------------------------------------------------------------------------------------------------------------
Other
Municipal Notes -- 2,850,000 -- 2,850,000
Unaffiliated Money Market Fund(a) 51,449 -- -- 51,449
- ---------------------------------------------------------------------------------------------------------------
Total Other 51,449 2,850,000 -- 2,901,449
- ---------------------------------------------------------------------------------------------------------------
Total $51,449 $647,707,048 $-- $647,758,497
- ---------------------------------------------------------------------------------------------------------------
</Table>
(a) Money market fund that is a sweep investment for cash balances in the Fund
at March 31, 2010.
- --------------------------------------------------------------------------------
26 SELIGMAN MUNICIPAL FUNDS -- 2010 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 800.221.2450.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 27
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman California Municipal High-Yield Fund
MARCH 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
MUNICIPAL BONDS (98.5%)
ISSUE COUPON PRINCIPAL
DESCRIPTION(c,d) RATE AMOUNT VALUE(a)
AIRPORT (1.4%)
County of Sacramento
Revenue Bonds
Series 2009B
07-01-39 5.75% $450,000 $480,699
- -------------------------------------------------------------------------------------
CITY (6.2%)
City of Berkeley
Unlimited General Obligation Bonds
Neighborhood Branch Measure
Series 2009FF
09-01-35 5.00 1,000,000 1,017,140
City of Martinez
Unlimited General Obligation Bonds
Election of 2008
Series 2009A
08-01-34 5.00 1,100,000 1,133,858
---------------
Total 2,150,998
- -------------------------------------------------------------------------------------
COLLEGE (11.2%)
California Educational Facilities Authority
Revenue Bonds
California Lutheran University
Series 2008
10-01-21 5.25 665,000 672,268
California Educational Facilities Authority
Revenue Bonds
Loyola Marymount University
Series 2010A
10-01-40 5.13 175,000 174,598
California Educational Facilities Authority
Revenue Bonds
Scripps College
Series 2001
08-01-31 5.00 1,500,000 1,501,050
California Educational Facilities Authority
Revenue Bonds
University of the Pacific
Series 2006
11-01-25 5.00 1,000,000 1,013,560
University of California
Revenue Bonds
Series 2009Q
05-15-34 5.00 500,000 519,930
---------------
Total 3,881,406
- -------------------------------------------------------------------------------------
ELECTRIC (2.0%)
City of Vernon
Revenue Bonds
Series 2009A
08-01-21 5.13 500,000 517,515
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2010XX
07-01-40 5.25 175,000(b,e) 172,634
---------------
Total 690,149
- -------------------------------------------------------------------------------------
HEALTH CARE -- HOSPITAL (19.3%)
California Health Facilities Financing Authority
Revenue Bonds
Adventist Health System West
Series 2009A
09-01-39 5.75 1,000,000 1,015,190
California Health Facilities Financing Authority
Revenue Bonds
Cedars-Sinai Medical Center
Series 2009
08-15-39 5.00 750,000 710,235
California Health Facilities Financing Authority
Revenue Bonds
Providence Health & Services
Series 2009B
10-01-39 5.50 750,000 779,235
California Health Facilities Financing Authority
Revenue Bonds
St. Joseph Health System
Series 2009A
07-01-29 5.50 700,000 722,470
California Municipal Finance Authority
Revenue Bonds
Community Hospital Center
Series 2009
02-01-39 5.50 750,000 662,415
California Statewide Communities Development Authority
Revenue Bonds
John Muir Health
Series 2006A
08-15-32 5.00 550,000 522,962
California Statewide Communities Development Authority
Revenue Bonds
Sutter Health
Series 2002B
08-15-42 5.63 500,000 501,225
Palomar Pomerado Health
Certificate of Participation
Series 2009
11-01-39 6.75 350,000 361,736
Washington Township Health Care District
Revenue Bonds
Series 1999
07-01-29 5.25 1,500,000 1,445,324
---------------
Total 6,720,792
- -------------------------------------------------------------------------------------
HOUSING -- SINGLE FAMILY (7.6%)
California Housing Finance Agency
Revenue Bonds
Multifamily Housing III
Series 1999A A.M.T.
02-01-36 5.38 2,280,000 2,110,733
California Housing Finance Authority
Revenue Bonds
Series 1997B-3 A.M.T.
08-01-28 5.40 510,000 510,122
---------------
Total 2,620,855
- -------------------------------------------------------------------------------------
LEASE (8.0%)
Los Angeles Municipal Improvement Corporation
Revenue Bonds
Cap Equipment
Series 2008A
09-01-24 5.00 1,000,000 1,031,840
Modesto Irrigation District
Certificate of Participation
Refunding & Capital Improvements Bonds
Series 1999B
07-01-22 5.30 1,740,000 1,745,203
---------------
Total 2,777,043
- -------------------------------------------------------------------------------------
MISCELLANEOUS REVENUE (2.4%)
Golden State Tobacco Securitization Corporation
Asset-backed Revenue Bonds
Series 2007A-1
06-01-47 5.13 1,300,000 828,789
- -------------------------------------------------------------------------------------
SALES OR USE TAX (3.4%)
Puerto Rico Highway & Transportation Authority
Prerefunded Revenue Bonds
Series 1996Y
07-01-36 5.50 1,000,000(b) 1,192,320
- -------------------------------------------------------------------------------------
SCHOOL (4.6%)
Lakeside Union Elementary School District
Unlimited General Obligation Bonds
Series 2009
08-01-33 5.00 1,590,000 1,606,441
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- ASSESSMENT (3.0%)
Palmdale Civic Authority
Refunding Revenue Bonds
Redevelopment Project #1
Series 2009A
07-01-27 6.00 1,000,000 1,037,240
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- TAX ALLOCATION (4.2%)
Bakersfield Redevelopment Agency
Tax Allocation Bonds
Old Town Kern Pioneer
Series 2009A
08-01-29 7.50 340,000 334,169
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
28 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman California Municipal High-Yield Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(c,d) RATE AMOUNT VALUE(a)
SPECIAL DISTRICT -- TAX ALLOCATION (CONT.)
Bakersfield Redevelopment Agency
Tax Allocation Bonds
Southeast Bakersfield
Series 2009B
08-01-29 7.25% $200,000 $201,046
Folsom Redevelopment Agency
Tax Allocation Bonds
Central Folsom Redevelopment Project
Series 2009
08-01-29 5.13 200,000 193,436
08-01-36 5.50 200,000 195,898
San Francisco City & County Redevelopment Agency
Tax Allocation Bonds
Mission Bay South Redevelopment
Series 2009D
08-01-29 6.38 500,000 521,910
---------------
Total 1,446,459
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- TAX INCREMENT (2.1%)
San Francisco City & County Redevelopment Agency
Tax Allocation Bonds
Redevelopment Projects
Series 2009B
08-01-28 6.13 700,000 737,289
- -------------------------------------------------------------------------------------
STATE (12.2%)
State of California
Unlimited General Obligation Bonds
Series 2008
08-01-34 5.00 500,000 465,380
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2005
03-01-32 5.00 1,000,000 942,800
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2009
04-01-25 5.63 500,000 518,395
04-01-31 5.75 750,000 776,625
04-01-38 6.00 500,000 525,160
State of California
Unlimited General Obligation Bonds
Various Purpose
Series 2010
03-01-40 5.50 1,000,000 992,690
---------------
Total 4,221,050
- -------------------------------------------------------------------------------------
TOLL ROAD (4.1%)
Foothill Eastern Transportation Corridor Agency
Refunding Revenue Bonds
Series 1999
01-15-40 5.75 1,500,000 1,434,090
- -------------------------------------------------------------------------------------
WATER & SEWER (6.8%)
Los Angeles Department of Water & Power
Revenue Bonds
Power System
Series 2009A
07-01-24 5.00 1,000,000 1,093,230
Orange County Water District
Refunding Certificate of Participation
Series 2009
08-15-39 5.00 750,000 756,660
San Diego Public Facilities Financing Authority
Revenue Bonds
Series 2009A
05-15-34 5.25 500,000 527,010
---------------
Total 2,376,900
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $33,768,276) $34,202,520
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (1.5%)
SHARES VALUE(a)
JPMorgan Tax-Free Money Market Fund 509,231 $509,231
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $509,231) $509,231
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $34,277,507)(f) $34,711,751
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Municipal obligations include debt obligations issued by or on behalf of
states, territories, possessions, or sovereign nations within the
territorial boundaries of the United States. Municipal securities
represented 3.93% of net assets at March 31, 2010.
(c) The following abbreviations may be used in the portfolio security
descriptions to identify the insurer of the issue:
<Table>
ACA -- ACA Financial 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
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 29
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman California Municipal High-Yield Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(d) The following abbreviations may be used in the portfolio descriptions:
<Table>
A.M.T. -- Alternative Minimum Tax -- At March 31, 2010, the value
of securities subject to alternative minimum tax
represented 7.55% 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
</Table>
(e) At March 31, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$171,094. See Note 2 to the financial statements.
(f) At March 31, 2010, the cost of securities for federal income tax purposes
was approximately $34,278,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $940,000
Unrealized depreciation (506,000)
-------------------------------------------------------------------------------------
Net unrealized appreciation $434,000
-------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
30 SELIGMAN MUNICIPAL FUNDS -- 2010 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.
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 a valuation model may include, but are not limited
to, financial statement analysis, 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, 2010:
<Table>
<Caption>
FAIR VALUE AT MARCH 31, 2010
--------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- --------------------------------------------------------------------------------------------------------------
Bonds
Municipal Bonds $-- $34,202,520 $-- $34,202,520
- --------------------------------------------------------------------------------------------------------------
Total Bonds -- 34,202,520 -- 34,202,520
- --------------------------------------------------------------------------------------------------------------
Other
Unaffiliated Money Market Fund(a) 509,231 -- -- 509,231
- --------------------------------------------------------------------------------------------------------------
Total Other 509,231 -- -- 509,231
- --------------------------------------------------------------------------------------------------------------
Total $509,231 $34,202,520 $-- $34,711,751
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) Money market fund that is a sweep investment for cash balances in the Fund
at March 31, 2010.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 31
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 800.221.2450.
- --------------------------------------------------------------------------------
32 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman California Municipal Quality Fund
MARCH 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
MUNICIPAL BONDS (97.8%)
ISSUE Coupon Principal
DESCRIPTION(b,c) rate amount Value(a)
AIRPORT (5.4%)
County of Sacramento
Revenue Bonds
Series 2008A (AGM)
07-01-25 5.00% $1,500,000 $1,567,935
County of Sacramento
Revenue Bonds
Series 2009B
07-01-39 5.75 550,000 587,521
---------------
Total 2,155,456
- -------------------------------------------------------------------------------------
CITY (5.5%)
City of Berkeley
Unlimited General Obligation Bonds
Neighborhood Branch Measure
Series 2009FF
09-01-35 5.00 975,000 991,712
City of Martinez
Unlimited General Obligation Bonds
Election of 2008
Series 2009A
08-01-34 5.00 1,200,000 1,236,936
---------------
Total 2,228,648
- -------------------------------------------------------------------------------------
COLLEGE (17.3%)
California Educational Facilities Authority
Revenue Bonds
Loyola Marymount University
Series 2010A
10-01-40 5.13 225,000 224,483
California Educational Facilities Authority
Revenue Bonds
Pepperdine University
Series 1999A
11-01-29 5.00 2,000,000 2,008,659
California Educational Facilities Authority
Revenue Bonds
Scripps College
Series 2007 (NPFGC)
11-01-25 5.00 1,315,000 1,354,240
California State University
Revenue Bonds
Systemwide
Series 2007A (AGM)
11-01-27 5.00 1,750,000 1,826,230
University of California
Revenue Bonds
Series 2008L
05-15-26 5.00 1,500,000 1,594,965
---------------
Total 7,008,577
- -------------------------------------------------------------------------------------
ELECTRIC (12.1%)
Anaheim Public Financing Authority
Revenue Bonds
Anaheim Electric Systems Distribution
Series 2009
10-01-25 5.00 1,500,000 1,588,019
City of Redding
Certificate of Participation
Series 2008A (AGM)
06-01-27 5.00 865,000 877,690
City of Riverside
Revenue Bonds
Series 2008D (AGM)
10-01-28 5.00 1,325,000 1,360,060
Sacramento Municipal Utility District
Refunding Revenue Bonds
Series 2004T (NPFGC/FGIC)
05-15-24 5.25 500,000 516,220
Southern California Public Power Authority
Revenue Bonds
Milford Wind Corridor Project
Series 2010-1
07-01-30 5.00 500,000 509,630
---------------
Total 4,851,619
- -------------------------------------------------------------------------------------
HEALTH CARE -- HOSPITAL (16.7%)
California Health Facilities Financing Authority
Revenue Bonds
Adventist Health System West
Series 2009A
09-01-39 5.75 1,000,000 1,015,190
California Health Facilities Financing Authority
Revenue Bonds
Cedars-Sinai Medical Center
Series 2009
08-15-39 5.00 900,000 852,282
California Health Facilities Financing Authority
Revenue Bonds
Providence Health & Services
Series 2009B
10-01-39 5.50 800,000 831,184
California Health Facilities Financing Authority
Revenue Bonds
Scripps Health
Series 2010A
11-15-36 5.00 750,000 729,518
California Health Facilities Financing Authority
Revenue Bonds
St. Joseph Health System
Series 2009A
07-01-29 5.50 800,000 825,680
California Statewide Communities Development Authority
Revenue Bonds
John Muir Health
Series 2009
07-01-39 5.13 500,000 478,440
California Statewide Communities Development Authority
Revenue Bonds
Kaiser Permanente
Series 2002A
11-01-32 5.50 2,000,000 2,008,480
---------------
Total 6,740,774
- -------------------------------------------------------------------------------------
LEASE (11.6%)
Eastern Municipal Water District
Certificate of Participation
Series 1991 (NPFGC/FGIC)
07-01-12 6.75 1,935,000 2,052,377
Modesto Irrigation District
Certificate of Participation
Capital Improvements
Series 2009A
10-01-29 5.75 1,500,000 1,623,660
San Mateo County Board of Education
Refunding Certificate of Participation
Series 2009
06-01-35 5.25 1,000,000 1,008,610
---------------
Total 4,684,647
- -------------------------------------------------------------------------------------
MISCELLANEOUS REVENUE (1.0%)
California Infrastructure & Economic Development Bank
Revenue Bonds
Walt Disney Family Museum
Series 2008
02-01-33 5.25 400,000 403,804
- -------------------------------------------------------------------------------------
SALES OR USE TAX (3.8%)
San Francisco Bay Area Rapid Transit District
Unrefunded Revenue Bonds
Series 1998 (AMBAC)
07-01-28 5.00 1,530,000 1,537,910
- -------------------------------------------------------------------------------------
SCHOOL (3.7%)
California Statewide Communities Development Authority
Revenue Bonds
Polytechnic School
Series 2009
12-01-34 5.00 735,000 727,753
Los Angeles Unified School District
Unlimited General Obligation Bonds
Series 2009D
01-01-34 5.00 750,000 757,132
---------------
Total 1,484,885
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 33
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman California Municipal Quality Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
SPECIAL DISTRICT -- ASSESSMENT (2.6%)
Palmdale Civic Authority
Refunding Revenue Bonds
Redevelopment Project #1
Series 2009A
07-01-27 6.00% $1,000,000 $1,037,240
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- TAX INCREMENT (1.4%)
San Francisco City & County Redevelopment Agency
Tax Allocation Bonds
Mission Bay North Redevelopment
Series 2009C
08-01-29 6.00 535,000 544,892
- -------------------------------------------------------------------------------------
STATE (1.4%)
State of California
Unlimited General Obligation Refunding Bonds
Series 2009A
07-01-21 5.25 500,000 545,675
- -------------------------------------------------------------------------------------
WATER & SEWER (15.3%)
California State Department of Water Resources
Revenue Bonds
Central Valley Project
Series 2008AE
12-01-27 5.00 1,000,000 1,070,470
Los Angeles Department of Water & Power
Revenue Bonds
Series 2001A
07-01-41 5.13 1,000,000 1,005,410
Orange County Water District
Refunding Certificate of Participation
Series 2009
08-15-39 5.00 1,000,000 1,008,880
Sacramento Regional County Sanitation District
Refunding Revenue Bonds
Series 2001 (AMBAC)
12-01-27 5.00 2,000,000 2,009,980
San Diego Public Facilities Financing Authority
Revenue Bonds
Series 2009A
05-15-34 5.25 1,000,000 1,054,020
---------------
Total 6,148,760
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $38,270,976) $39,372,887
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MUNICIPAL NOTES (0.5%)
AMOUNT
ISSUE EFFECTIVE PAYABLE
DESCRIPTION(B,C,D) YIELD MATURITY VALUE(a)
City of Irvine
Limited Obligation Special
Assessment Bonds
District #93-14 V.R.D.N.
Series 2000 (Bank of
America) 09-02-25 0.26% $200,000 $200,000
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL NOTES
(Cost: $200,000) $200,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.5%)
SHARES VALUE(a)
JPMorgan Tax-Free Money Market Fund 194,770 $194,770
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $194,770) $194,770
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $38,665,746)(e) $39,767,657
=====================================================================================
</Table>
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 of the issue:
<Table>
ACA -- ACA Financial 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
</Table>
(c) The following abbreviations may be used in the portfolio descriptions:
<Table>
A.M.T. -- Alternative Minimum Tax
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
</Table>
- --------------------------------------------------------------------------------
34 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman California Municipal Quality Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(d) The Fund is entitled to receive principal and interest from the party, if
indicated in parentheses, after a day or a week's notice or upon maturity.
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, 2010.
(e) At March 31, 2010, the cost of securities for federal income tax purposes
was approximately $38,666,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $1,243,000
Unrealized depreciation (141,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $1,102,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 35
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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.
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 a valuation model may include, but are not limited
to, financial statement analysis, 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, 2010:
<Table>
<Caption>
FAIR VALUE AT MARCH 31, 2010
--------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- -----------------------------------------------------------------------------------------------------------------------
Bonds
Municipal Bonds $-- $39,372,887 $-- $39,372,887
- -----------------------------------------------------------------------------------------------------------------------
Total Bonds -- 39,372,887 -- 39,372,887
- -----------------------------------------------------------------------------------------------------------------------
Other
Municipal Notes -- 200,000 -- 200,000
Unaffiliated Money Market Fund(a) 194,770 -- -- 194,770
- -----------------------------------------------------------------------------------------------------------------------
Total Other 194,770 200,000 -- 394,770
- -----------------------------------------------------------------------------------------------------------------------
Total $194,770 $39,572,887 $-- $39,767,657
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(a) Money market fund that is a sweep investment for cash balances in the Fund
at March 31, 2010.
- --------------------------------------------------------------------------------
36 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 800.221.2450.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 37
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman Minnesota Municipal Fund
MARCH 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
MUNICIPAL BONDS (98.5%)
ISSUE COUPON PRINCIPAL
DESCRIPTION(c,d) RATE AMOUNT VALUE(a)
AIRPORT (0.7%)
Minneapolis-St. Paul Metropolitan Airports Commission
Refunding Revenue Bonds
Series 2009B A.M.T.
01-01-22 5.00% $480,000 $481,987
- -------------------------------------------------------------------------------------
CITY (2.4%)
City of Minneapolis
Unlimited General Obligation Bonds
Various Purpose
Series 2009-2
12-01-16 5.00 1,000,000 1,067,370
City of Moorhead
Unlimited General Obligation Bonds
Flood Mitigation
Series 2009B
02-01-29 4.50 500,000 499,340
---------------
Total 1,566,710
- -------------------------------------------------------------------------------------
COLLEGE (15.5%)
Minnesota Higher Education Facilities Authority
Revenue Bonds
Bethel University
Sixth Series 2007R
05-01-23 5.50 275,000 273,466
Minnesota Higher Education Facilities Authority
Revenue Bonds
St. Catherine's College
Series 2002-5-N1
10-01-32 5.38 1,000,000 966,460
Minnesota Higher Education Facilities Authority
Revenue Bonds
St. John's University
6th Series 2005G
10-01-22 5.00 3,500,000 3,644,095
Minnesota Higher Education Facilities Authority
Revenue Bonds
St. Olaf College
Series 2007O
10-01-22 5.00 3,040,000 3,185,008
Minnesota Higher Education Facilities Authority
Revenue Bonds
University of St. Thomas
6th Series 2009X
04-01-39 5.25 1,100,000 1,121,274
Minnesota Higher Education Facilities Authority
Revenue Bonds
University of St. Thomas
Series 2009-7A
10-01-39 5.00 1,000,000 1,007,520
---------------
Total 10,197,823
- -------------------------------------------------------------------------------------
COUNTY (4.8%)
County of Anoka
Unlimited General Obligation Bonds
Capital Improvements
Series 2008A
02-01-23 5.00 1,000,000 1,094,630
Dakota County Community Development Authority
Unlimited General Obligation Bonds
Senior Housing Facility
Series 2001
01-01-19 5.25 2,000,000 2,062,920
---------------
Total 3,157,550
- -------------------------------------------------------------------------------------
ELECTRIC (13.8%)
Minnesota Municipal Power Agency
Revenue Bonds
Series 2005
10-01-30 5.00 500,000 508,650
Northern Municipal Power Agency
Revenue Bonds
Series 2007A (AMBAC)
01-01-26 5.00 1,000,000 1,042,310
Northern Municipal Power Agency
Revenue Bonds
Series 2008A (Assured Guaranty)
01-01-21 5.00 1,000,000 1,068,080
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2010XX
07-01-40 5.25 300,000(b,g) 295,944
Southern Minnesota Municipal Power Agency
Revenue Bonds
Capital Appreciation
Zero Coupon
Series 1994A (NPFGC)
01-01-26 5.01 5,000,000(e) 2,394,400
Western Minnesota Municipal Power Agency
Revenue Bonds
Series 1977A
Escrowed to Maturity
01-01-16 6.38 3,280,000 3,781,610
---------------
Total 9,090,994
- -------------------------------------------------------------------------------------
HEALTH CARE -- HOSPITAL (26.5%)
City of Breckenridge
Revenue Bonds
Catholic Health Initiatives
Series 2004A
05-01-30 5.00 775,000 786,106
City of Maple Grove
Revenue Bonds
Maple Grove Hospital Corporation
Series 2007
05-01-37 5.25 750,000 709,598
City of Rochester
Revenue Bonds
Mayo Clinic
Series 2008D
11-15-38 5.00 1,000,000(g) 1,019,050
City of Shakopee
Revenue Bonds
St. Francis Regional Medical Center
Series 2004
09-01-25 5.10 2,000,000 1,900,919
City of St. Cloud
Revenue Bonds
Centracare Health System
Series 2010A
05-01-30 5.13 1,000,000 985,770
City of St. Cloud
Revenue Bonds
St. Cloud Hospital Obligation Group
Series 2000A (AGM)
05-01-30 5.88 3,750,000 3,789,787
City of St. Louis Park
Refunding Revenue Bonds
Park Nicollet Health Services
Series 2009
07-01-39 5.75 1,500,000 1,491,435
Minneapolis & St. Paul Housing & Redevelopment Authority
Revenue Bonds
Children's Healthcare Facilities
Series 2010A
08-15-35 5.25 1,000,000 1,003,110
Minnesota Agricultural & Economic Development Board
Unrefunded Revenue Bonds
Evangelical
Series 1997 (AMBAC)
12-01-22 5.15 1,175,000 1,175,047
St. Paul Housing & Redevelopment Authority
Revenue Bonds
Allina Health Systems
Series 2009A-1
11-15-29 5.25 1,250,000 1,253,663
St. Paul Housing & Redevelopment Authority
Revenue Bonds
Gillette Children's Specialty
Series 2009
02-01-27 5.00 1,300,000 1,252,615
02-01-29 5.00 525,000 504,525
St. Paul Housing & Redevelopment Authority
Revenue Bonds
HealthPartners Obligation Group Project
Series 2006
05-15-36 5.25 1,500,000 1,376,415
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
38 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman Minnesota Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(c,d) RATE AMOUNT VALUE(a)
HEALTH CARE -- HOSPITAL (CONT.)
Staples United Hospital District
Unlimited General Obligation Bonds
Health Care Facilities-Lakewood
Series 2004
12-01-34 5.00% $250,000 $252,260
---------------
Total 17,500,300
- -------------------------------------------------------------------------------------
HOUSING -- MULTI-FAMILY (1.5%)
Minnesota Housing Finance Agency
Revenue Bonds
Series 2009
01-01-40 5.10 1,000,000 1,007,990
- -------------------------------------------------------------------------------------
HOUSING -- SINGLE FAMILY (1.5%)
Minnesota Housing Finance Authority
Revenue Bonds
Residential Housing Finance
Series 2008A
07-01-23 4.65 990,000 1,012,899
- -------------------------------------------------------------------------------------
LEASE (2.3%)
Minnetrista Economic Development Authority
Revenue Bonds
Series 2009A
02-01-28 4.50 285,000 286,650
02-01-29 4.63 200,000 202,032
02-01-31 4.75 400,000 405,568
St. Paul Housing & Redevelopment Authority
Revenue Bonds
Parking Facility -- RiverCenter Parking Ramp
Series 2009
05-01-24 4.50 580,000 602,336
---------------
Total 1,496,586
- -------------------------------------------------------------------------------------
MISCELLANEOUS REVENUE (6.1%)
State of Minnesota
Revenue Bonds
Series 2000
06-01-30 6.00 4,000,000 4,022,360
- -------------------------------------------------------------------------------------
SCHOOL (5.5%)
Hopkins Independent School District No. 270
Unlimited General Obligation Bonds
Series 2009B
(School District Credit Enhancement Program)
02-01-27 4.00 1,500,000 1,489,035
Rocori Area Schools Independent School District #750
Unlimited General Obligation Bonds
School Building
Series 2009B
(School District Credit Enhancement Program)
02-01-34 4.75 2,100,000 2,150,106
---------------
Total 3,639,141
- -------------------------------------------------------------------------------------
SPECIAL PURPOSE CERTIFICATES -- GENERAL OBLIGATIONS (6.5%)
Metropolitan Council Minneapolis-St. Paul Area
Unlimited General Obligation Refunding Bonds
Waste Water
Series 2005B
05-01-25 5.00 4,000,000 4,268,840
- -------------------------------------------------------------------------------------
WATER & SEWER (11.4%)
City of Rochester
Unlimited General Obligation Bonds
Waste Water
Series 2004A
02-01-25 5.00 3,305,000 3,523,395
City of St. Paul
Revenue Bonds
Series 2009C
12-01-28 4.00 1,270,000 1,258,392
Minnesota Public Facilities Authority
Revenue Bonds
Series 2005A
03-01-19 5.00 2,480,000 2,724,875
---------------
Total 7,506,662
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $62,920,332) $64,949,842
- -------------------------------------------------------------------------------------
<Caption>
MUNICIPAL NOTES (2.0%)
AMOUNT
ISSUE EFFECTIVE PAYABLE AT
DESCRIPTION(c,d,f) YIELD MATURITY VALUE(a)
Minneapolis & St. Paul Housing & Redevelopment Authority
Revenue Bonds
Allina Health Systems
V.R.D.N. Series 2009B-1 (JP Morgan Chase Bank)
11-15-35 0.32% $1,000,000 $1,000,000
Minnesota Higher Education Facilities Authority
Revenue Bonds
St. Olaf College
V.R.D.N. 5th Series 2000H (Harris Trust & Savings Bank)
10-01-30 0.32 300,000 300,000
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL NOTES
(Cost: $1,300,000) $1,300,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.2%)
SHARES VALUE(a)
JPMorgan Tax-Free Money Market Fund 158,892 $158,892
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $158,892) $158,892
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $64,379,224)(h) $66,408,734
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using policies described in Note 2 to the
financial statements.
(b) Municipal obligations include debt obligations issued by or on behalf of
states, territories, possessions, or sovereign nations within the
territorial boundaries of the United States. Municipal securities
represented 0.45% of net assets at March 31, 2010.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 39
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman Minnesota Municipal Fund
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(c) The following abbreviations may be used in the portfolio security
descriptions to identify the insurer of the issue:
<Table>
ACA -- ACA Financial 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
</Table>
(d) The following abbreviations may be used in the portfolio descriptions:
<Table>
A.M.T. -- Alternative Minimum Tax -- At March 31, 2010, the value
of securities subject to alternative minimum tax
represented 0.73% 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
</Table>
(e) For zero coupons, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(f) The Fund is entitled to receive principal and interest from the party, if
indicated in parentheses, after a day or a week's notice or upon maturity.
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, 2010.
(g) At March 31, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$1,314,764. See Note 2 to the financial statements.
(h) At March 31, 2010, the cost of securities for federal income tax purposes
was approximately $64,379,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $2,125,000
Unrealized depreciation (95,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $2,030,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
40 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
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 a valuation model may include, but are not limited
to, financial statement analysis, 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, 2010:
<Table>
<Caption>
FAIR VALUE AT MARCH 31, 2010
--------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- --------------------------------------------------------------------------------------------------------------
Bonds
Municipal Bonds $-- $64,949,842 $-- $64,949,842
- --------------------------------------------------------------------------------------------------------------
Total Bonds -- 64,949,842 -- 64,949,842
- --------------------------------------------------------------------------------------------------------------
Other
Municipal Notes -- 1,300,000 -- 1,300,000
Unaffiliated Money Market Fund(a) 158,892 -- -- 158,892
- --------------------------------------------------------------------------------------------------------------
Total Other 158,892 1,300,000 -- 1,458,892
- --------------------------------------------------------------------------------------------------------------
Total $158,892 $66,249,842 $-- $66,408,734
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) Money market fund that is a sweep investment for cash balances in the Fund
at March 31, 2010.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 41
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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 800.221.2450.
- --------------------------------------------------------------------------------
42 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
Seligman New York Municipal Fund
MARCH 31, 2010 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
MUNICIPAL BONDS (98.2%)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
CITY (5.5%)
City of New York
Prerefunded Unlimited General Obligation Bonds
Series 2000A
05-15-30 6.00% $2,900,000 $2,949,271
City of New York
Unlimited General Obligation Bonds
Sub Series 2009I-1
04-01-27 5.13 1,500,000 1,600,785
City of New York
Unrefunded Unlimited General Obligation Bonds
Series 1995C
08-15-24 7.25 5,000 5,024
City of New York
Unrefunded Unlimited General Obligation Bonds
Series 2000A
05-15-30 6.00 25,000 25,346
---------------
Total 4,580,426
- -------------------------------------------------------------------------------------
COLLEGE (27.5%)
Nassau County Industrial Development Agency
Refunding Revenue Bonds
New York Institute of Technology Project
Series 2000A
03-01-26 4.75 725,000 705,237
New York State Dormitory Authority
Revenue Bonds
Brooklyn Law School
Series 2003B (XLCA)
07-01-30 5.13 1,000,000 999,290
New York State Dormitory Authority
Revenue Bonds
Cornell University
Series 2006A
07-01-35 5.00 1,000,000 1,042,950
New York State Dormitory Authority
Revenue Bonds
Cornell University
Series 2009A
07-01-27 5.00 2,500,000 2,719,774
New York State Dormitory Authority
Revenue Bonds
Manhattan Marymount College
Series 2009
07-01-29 5.25 1,000,000 989,170
New York State Dormitory Authority
Revenue Bonds
Mount Sinai School of Medicine
Series 2009
07-01-39 5.13 1,000,000 997,660
New York State Dormitory Authority
Revenue Bonds
New York University
Series 2007A (AMBAC)
07-01-24 5.00 2,000,000 2,123,379
New York State Dormitory Authority
Revenue Bonds
North Shore-Long Island Jewish
Series 2009A
05-01-37 5.50 1,250,000 1,265,088
New York State Dormitory Authority
Revenue Bonds
Pratt Institute
Series 2009C
07-01-39 5.13 1,000,000 1,034,550
New York State Dormitory Authority
Revenue Bonds
Rockefeller University
Series 2009A
07-01-27 4.75 600,000 648,450
New York State Dormitory Authority
Revenue Bonds
Rockefeller University
Series 2009C
07-01-40 5.00 1,500,000 1,582,859
New York State Dormitory Authority
Revenue Bonds
St. John's University
Series 2007A (NPFGC)
07-01-32 5.25 1,000,000 1,029,050
New York State Dormitory Authority
Revenue Bonds
St. John's University
Series 2007C (NPFGC)
07-01-26 5.25 1,205,000 1,293,869
New York State Dormitory Authority
Revenue Bonds
University of Rochester
Series 2009A
07-01-39 5.13 1,350,000 1,397,669
New York State Dormitory Authority
Revenue Bonds
Yeshiva University
Series 2001 (AMBAC)
07-01-30 5.00 1,250,000 1,255,013
New York State Dormitory Authority
Revenue Bonds
Yeshiva University
Series 2009
09-01-38 5.00 500,000 513,585
Rensselaer County Industrial Development Agency
Revenue Bonds
Polytechnic Institute Dorm Project
Series 1999A
08-01-29 5.13 1,000,000 1,000,500
Town of Hempstead Local Development Corporation
Revenue Bonds
Molloy College Project
Series 2009
07-01-39 5.75 1,200,000 1,200,732
Yonkers Industrial Development Agency
Revenue Bonds
Sarah Lawrence College Project
Series 2001A
06-01-29 6.00 1,000,000 1,034,810
---------------
Total 22,833,635
- -------------------------------------------------------------------------------------
COUNTY (2.4%)
County of Suffolk
Unlimited General Obligation Public Improvement Bonds
Series 2009A
05-15-26 4.25 2,000,000 2,024,080
- -------------------------------------------------------------------------------------
ELECTRIC (0.5%)
Puerto Rico Electric Power Authority
Revenue Bonds
Series 2010XX
07-01-40 5.25 400,000(e,f) 394,592
- -------------------------------------------------------------------------------------
HEALTH CARE -- HOSPITAL (5.7%)
New York State Dormitory Authority
Revenue Bonds
Mental Health Services Facilities Improvements
Series 2007C (AGM)
08-15-26 5.00 2,000,000 2,098,200
New York State Dormitory Authority
Revenue Bonds
Mental Health Services Facilities Improvements
Series 2009
02-15-18 5.50 1,000,000 1,133,300
New York State Dormitory Authority
Revenue Bonds
Vassar Brothers Hospital
Series 1997 (AGM)
07-01-25 5.38 1,500,000 1,504,185
---------------
Total 4,735,685
- -------------------------------------------------------------------------------------
HEALTH CARE -- NURSING HOME (2.8%)
New York State Housing Finance Agency
Revenue Bonds
Phillips Village Housing Project
Series 1994A (FHA) A.M.T.
08-15-17 7.75 2,295,000 2,319,511
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 43
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
Seligman New York Municipal Fund
<Table>
<Caption>
MUNICIPAL BONDS (CONTINUED)
ISSUE COUPON PRINCIPAL
DESCRIPTION(b,c) RATE AMOUNT VALUE(a)
HOUSING -- MULTI-FAMILY (0.9%)
New York City Housing Development Corporation
Revenue Bonds
Series 2009M
11-01-45 5.15% $750,000 $753,750
- -------------------------------------------------------------------------------------
HOUSING -- SINGLE FAMILY (0.8%)
New York Mortgage Agency
Revenue Bonds
Homeowners Mortgage
Series 1998-69 A.M.T.
10-01-28 5.50 425,000 425,149
New York Mortgage Agency
Revenue Bonds
Series 1999-82 A.M.T.
04-01-30 5.65 245,000 245,103
---------------
Total 670,252
- -------------------------------------------------------------------------------------
INDUSTRIAL-POLLUTION -- IDR (6.6%)
New York Liberty Development Corporation
Revenue Bonds
Goldman Sachs Headquarters
Series 2005
10-01-35 5.25 1,500,000 1,510,530
New York State Energy Research & Development Authority
Revenue Bonds
Brooklyn Union Gas Company Project
Series 1996 (NPFGC)
01-01-21 5.50 4,000,000 4,013,560
---------------
Total 5,524,090
- -------------------------------------------------------------------------------------
INDUSTRIAL-POLLUTION -- PCR (2.6%)
Onondaga County Industrial Development Agency
Revenue Bonds
Bristol-Meyers Squibb Company Project
Series 1994 A.M.T.
03-01-24 5.75 2,000,000 2,167,860
- -------------------------------------------------------------------------------------
LEASE (4.5%)
Erie County Industrial Development Agency
Revenue Bonds
Buffalo City School District
Series 2009A
05-01-31 5.00 1,500,000 1,553,100
New York Local Government Assistance Corporation
Refunding Revenue Bonds
Sr Lien
Series 2007A
04-01-19 5.00 2,000,000 2,223,520
---------------
Total 3,776,620
- -------------------------------------------------------------------------------------
MISCELLANEOUS REVENUE (6.1%)
Metropolitan Transportation Authority
Refunding Revenue Bond
Series 2002A
01-01-29 5.13 2,950,000 2,996,404
New York City Trust for Cultural Resources
Revenue Bonds
Museum of Modern Art
Series 2001D (AMBAC)
07-01-31 5.13 1,000,000 1,016,170
New York State Dormitory Authority
Revenue Bonds
School Districts Financing Program
Series 2009C
10-01-36 5.13 1,000,000 1,029,950
---------------
Total 5,042,524
- -------------------------------------------------------------------------------------
PORT DISTRICT (3.2%)
Port Authority of New York & New Jersey
Revenue Bonds
Consolidated 93rd
Series 1994
06-01-94 6.13 2,250,000 2,624,625
- -------------------------------------------------------------------------------------
SALES OR USE TAX (2.2%)
Nassau County Interim Finance Authority
Revenue Bonds
Secured Sales Tax
Series 2009A
11-15-24 5.00 250,000 275,835
New York City Transitional Finance Authority
Unrefunded Revenue Bonds
Secured Future Tax
Series 2001B
05-01-30 5.00 1,500,000 1,527,570
---------------
Total 1,803,405
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- SPECIAL TAX (12.0%)
Metropolitan Transportation Authority
Revenue Bonds
Series 2009B
11-15-34 5.00 2,000,000 2,082,059
New York City Transitional Finance Authority
Revenue Bonds
Fiscal 2009
Series 2009S-3
01-15-22 5.00 1,000,000 1,068,770
New York City Transitional Finance Authority
Subordinated Revenue Bonds
Secured Future Tax
Series 2007B
11-01-26 5.00 1,035,000 1,104,842
New York State Dormitory Authority Revenue Bonds
Education
Series 2009A
03-15-28 5.00 1,545,000 1,654,293
New York State Dormitory Authority
Revenue Bonds
Series 2009A
02-15-34 5.00 1,400,000 1,472,632
New York State Housing Finance Agency
Revenue Bonds
Economic Development & Housing
Series 2009A
03-15-39 5.00 1,000,000 1,050,040
New York State Urban Development Corporation
Revenue Bonds
State Personal Income Tax
Series 2009B-1
03-15-36 5.00 1,500,000 1,564,860
---------------
Total 9,997,496
- -------------------------------------------------------------------------------------
SPECIAL DISTRICT -- TAX INCREMENT (1.3%)
New York State Urban Development Corporation
Prerefunded Revenue Bonds
Personal Income Tax State Facilities
Series 2002A
03-15-32 5.25 1,000,000 1,085,800
- -------------------------------------------------------------------------------------
TOLL ROAD (6.9%)
New York State Thruway Authority
Revenue Bonds
Series 2005A (NPFGC)
04-01-25 5.00 500,000 523,795
New York State Thruway Authority
Revenue Bonds
Series 2005F (AMBAC)
01-01-25 5.00 2,600,000 2,686,294
Triborough Bridge & Tunnel Authority
Prerefunded Revenue Bonds
General Purpose
Series 1999B
01-01-30 5.50 1,800,000 2,169,360
Triborough Bridge & Tunnel Authority
Unfunded Revenue Bonds
General Purpose
Series 2001A
01-01-32 5.00 380,000 384,093
---------------
Total 5,763,542
- -------------------------------------------------------------------------------------
WATER & SEWER (6.7%)
New York City Municipal Water Finance Authority
Prerefunded Revenue Bonds
Series 2000
06-15-33 5.50 2,000,000 2,041,460
New York City Municipal Water Finance Authority
Refunding Revenue Bonds
Series 2006C
06-15-33 4.75 1,440,000 1,446,048
New York City Municipal Water Finance Authority
Revenue Bonds
Series 2008CC
06-15-34 5.00 2,000,000 2,076,180
---------------
Total 5,563,688
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost: $78,017,017) $81,661,581
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
44 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman New York Municipal Fund
<Table>
<Caption>
MUNICIPAL NOTES (0.4%)
AMOUNT
ISSUE EFFECTIVE PAYABLE AT
DESCRIPTION(b,c,d) YIELD MATURITY VALUE(a)
City of New York
Unlimited General Obligation Bonds
V.R.D.N. Sub Series 2005E-2 (Bank of America)
08-01-34 0.29% $300,000 $300,000
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL NOTES
(Cost: $300,000) $300,000
- -------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MONEY MARKET FUND (0.3%)
SHARES VALUE(a)
JPMorgan Tax-Free Money Market Fund 267,952 $267,952
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $267,952) $267,952
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $78,584,969)(g) $82,229,533
=====================================================================================
</Table>
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 of the issue:
<Table>
ACA -- ACA Financial 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
</Table>
(c) The following abbreviations may be used in the portfolio descriptions:
<Table>
A.M.T. -- Alternative Minimum Tax -- At March 31, 2010, the value
of securities subject to alternative minimum tax
represented 6.20% 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
</Table>
(d) The Fund is entitled to receive principal and interest from the party, if
indicated in parentheses, after a day or a week's notice or upon maturity.
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, 2010.
(e) At March 31, 2010, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$391,072. See Note 2 to the financial statements.
(f) Municipal obligations include debt obligations issued by or on behalf of
states, territories, possessions, or sovereign nations within the
territorial boundaries of the United States. Municipal securities
represented 0.47% of net assets at March 31, 2010.
(g) At March 31, 2010, the cost of securities for federal income tax purposes
was approximately $78,585,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $3,704,000
Unrealized depreciation (59,000)
--------------------------------------------------------------------------------------
Net unrealized appreciation $3,645,000
--------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 45
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.
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 a valuation model may include, but are not limited
to, financial statement analysis, 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, 2010:
<Table>
<Caption>
FAIR VALUE AT MARCH 31, 2010
--------------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- --------------------------------------------------------------------------------------------------------------
Bonds
Municipal Bonds $-- $81,661,581 $-- $81,661,581
- --------------------------------------------------------------------------------------------------------------
Total Bonds -- 81,661,581 -- 81,661,581
- --------------------------------------------------------------------------------------------------------------
Other
Municipal Notes -- 300,000 -- 300,000
Unaffiliated Money Market Fund(a) 267,952 -- -- 267,952
- --------------------------------------------------------------------------------------------------------------
Total Other 267,952 300,000 -- 567,952
- --------------------------------------------------------------------------------------------------------------
Total $267,952 $81,961,581 $-- $82,229,533
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) Money market fund that is a sweep investment for cash balances in the Fund
at March 31, 2010.
- --------------------------------------------------------------------------------
46 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman New York 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 800.221.2450.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 47
STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
SELIGMAN CALIFORNIA MUNICIPAL CALIFORNIA MUNICIPAL
NATIONAL MUNICIPAL HIGH-YIELD QUALITY
MARCH 31, 2010 (UNAUDITED) FUND FUND FUND
ASSETS
Investments in securities, at value
(identified cost $632,277,161, $33,768,276 and
$38,470,976) $647,707,048 $34,202,520 $39,572,887
Money market fund
(identified cost $51,449, $509,231 and
$194,770) 51,449 509,231 194,770
- ------------------------------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost
$632,328,610, $34,277,507 and $38,665,746) 647,758,497 34,711,751 39,767,657
Capital shares receivable 193,877 5,000 --
Accrued interest receivable 9,318,011 414,199 632,403
Receivable for investment securities sold 6,963,769 -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total assets 664,234,154 35,130,950 40,400,060
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 681,781 38,087 40,967
Capital shares payable 1,199,713 147,372 20,140
Payable for investment securities purchased 9,409,653 171,094 --
Accrued investment management services fees 7,337 391 454
Accrued distribution fees 280,935 14,953 17,409
Accrued transfer agency fees 513,710 25,492 30,467
Accrued administrative services fees 1,232 67 78
Other accrued expenses 113,645 26,588 32,407
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,208,006 424,044 141,922
- ------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $652,026,148 $34,706,906 $40,258,138
- ------------------------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest/capital
stock -- $.001 par value $ 84,155 $ 5,418 $ 6,274
Additional paid-in capital 634,080,174 34,182,625 39,103,245
Undistributed net investment income 36,680 1,246 835
Accumulated net realized gain (loss) 2,395,252 83,373 45,873
Unrealized appreciation (depreciation) on
investments 15,429,887 434,244 1,101,911
- ------------------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to
outstanding shares $652,026,148 $34,706,906 $40,258,138
- ------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
outstanding shares: Class A $617,391,928 $28,762,816 $36,850,754
Class C $ 34,634,220 $ 5,944,090 $ 3,407,384
Outstanding shares of beneficial
interest/capital stock: Class A shares 79,705,246 4,490,885 5,740,968
Class C shares 4,449,981 926,956 533,175
Net asset value per share: Class A(1) $ 7.75 $ 6.40 $ 6.42
Class C $ 7.78 $ 6.41 $ 6.39
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(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 $8.14, $6.72 and $6.74, 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 these
statements.
- --------------------------------------------------------------------------------
48 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
MINNESOTA MUNICIPAL NEW YORK MUNICIPAL
MARCH 31, 2010 (UNAUDITED) FUND FUND
ASSETS
Investments in securities, at value
(identified cost $64,220,332 and $78,317,017) $66,249,842 $81,961,581
Money market fund
(identified cost $158,892 and $267,952) 158,892 267,952
- -----------------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $64,379,224 and
$78,584,969) 66,408,734 82,229,533
Capital shares receivable 100,517 364,722
Accrued interest receivable 946,264 1,173,328
Receivable for investment securities sold -- 46,264
- -----------------------------------------------------------------------------------------------------------------
Total assets 67,455,515 83,813,847
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 65,660 82,937
Capital shares payable 713 35,542
Payable for investment securities purchased 1,314,764 391,072
Accrued investment management services fees 741 931
Accrued distribution fees 28,331 35,514
Accrued transfer agency fees 50,685 59,518
Accrued administrative services fees 127 159
Other accrued expenses 31,847 32,421
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 1,492,868 638,094
- -----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares $65,962,647 $83,175,753
- -----------------------------------------------------------------------------------------------------------------
REPRESENTED BY
Shares of beneficial interest/capital stock -- $.001 par value $ 8,730 $ 10,322
Additional paid-in capital 63,247,339 79,179,950
Undistributed net investment income 9,564 108
Accumulated net realized gain (loss) 667,504 340,809
Unrealized appreciation (depreciation) on investments 2,029,510 3,644,564
- -----------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
shares $65,962,647 $83,175,753
- -----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding shares: Class A $64,691,102 $74,544,551
Class C $ 1,271,545 $ 8,631,202
Outstanding shares of beneficial
interest/capital stock: Class A shares 8,562,414 9,252,601
Class C shares 167,897 1,069,202
Net asset value per share: Class A(1) $ 7.56 $ 8.06
Class C $ 7.57 $ 8.07
- -----------------------------------------------------------------------------------------------------------------
</Table>
(1) The maximum offering price per share for Class A for Seligman Minnesota
Municipal Fund and Seligman New York Municipal Fund is $7.94 and $8.46,
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 these
statements.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 49
STATEMENTS OF OPERATIONS -------------------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
SELIGMAN CALIFORNIA MUNICIPAL CALIFORNIA MUNICIPAL
NATIONAL MUNICIPAL HIGH-YIELD QUALITY
SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) FUND FUND FUND
INVESTMENT INCOME
Income:
Interest $ 16,455,165 $ 923,818 $ 989,541
Income distributions from money market fund 487 54 74
- ----------------------------------------------------------------------------------------------------------------------
Total income 16,455,652 923,872 989,615
- ----------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 1,370,253 72,062 84,016
Distribution fees
Class A 791,416 36,482 46,949
Class C 176,416 29,833 17,120
Transfer agency fees
Class A 241,600 9,116 11,843
Class C 13,711 1,893 1,101
Administrative services fees 229,701 12,303 14,344
Compensation of board members 9,998 524 610
Custodian fees 36,200 968 --
Printing and postage 43,350 5,726 5,422
Registration fees 31,135 12,970 18,307
Professional fees 14,810 11,957 11,778
Other (183,353) -- --
- ----------------------------------------------------------------------------------------------------------------------
Total expenses 2,775,237 193,834 211,490
Expenses waived/reimbursed by the Investment
Manager and its affiliates (2,831) (32,609) (36,768)
- ----------------------------------------------------------------------------------------------------------------------
Total net expenses 2,772,406 161,225 174,722
- ----------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 13,683,246 762,647 814,893
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security
transactions 7,248,749 83,407 45,914
Net change in unrealized appreciation
(depreciation) on investments (24,212,713) (1,099,216) (1,195,203)
- ----------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (16,963,964) (1,015,809) (1,149,289)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (3,280,718) $ (253,162) $ (334,396)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of these
statements.
- --------------------------------------------------------------------------------
50 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
MINNESOTA MUNICIPAL NEW YORK MUNICIPAL
SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) FUND FUND
INVESTMENT INCOME
Income:
Interest $ 1,619,296 $ 2,012,853
Income distributions from money market fund 158 91
- ---------------------------------------------------------------------------------------------------------
Total income 1,619,454 2,012,944
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management services fees 139,741 170,099
Distribution fees
Class A 83,524 93,330
Class C 6,735 41,557
Transfer agency fees
Class A 24,702 21,232
Class C 511 2,417
Administrative services fees 23,858 29,041
Compensation of board members 1,017 1,243
Custodian fees 479 5,200
Printing and postage 8,897 6,261
Registration fees 14,200 19,130
Professional fees 11,989 12,038
Other 1,364 --
- ---------------------------------------------------------------------------------------------------------
Total expenses 317,017 401,548
Expenses waived/reimbursed by the Investment Manager and
its affiliates (42,709) (42,630)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 274,308 358,918
- ---------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 1,345,146 1,654,026
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on security transactions 841,787 469,269
Net change in unrealized appreciation (depreciation) on
investments (2,073,325) (2,103,668)
- ---------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (1,231,538) (1,634,399)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 113,608 $ 19,627
- ---------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of these
statements.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 51
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
NATIONAL MUNICIPAL FUND CALIFORNIA MUNICIPAL HIGH-YIELD FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009 MARCH 31, 2010 SEPT. 30, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 13,683,246 $ 5,962,400 $ 762,647 $ 1,407,851
Net realized gain (loss) on
investments 7,248,749 13,905,752 83,407 453,487
Net change in unrealized appreciation
(depreciation) on investments (24,212,713) 31,081,735 (1,099,216) 2,360,069
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (3,280,718) 50,949,887 (253,162) 4,221,407
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (13,621,171) (8,615,539) (749,770) (1,201,634)
Class C (627,384) (317,681) (130,996) (174,139)
Net realized gain
Class A (13,491,860) -- (371,289) --
Class C (748,905) -- (76,734) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (28,489,320) (8,933,220) (1,328,789) (1,375,773)
- ---------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class A shares 17,548,940 45,075,085 678,034 2,870,854
Class C shares 2,137,946 4,697,103 291,908 1,027,098
Fund mergers (Note 9)
Class A shares N/A 632,443,068 N/A N/A
Class C shares N/A 30,091,669 N/A N/A
Reinvestment of distributions at net
asset value
Class A shares 18,198,552 5,176,170 717,030 813,149
Class C shares 906,373 194,986 128,633 136,630
Payments for redemptions
Class A shares (54,034,613) (114,383,759) (2,459,652) (5,803,643)
Class C shares (3,388,580) (2,525,320) (371,915) (859,822)
Redemption fees (Note 5) 15,079 996,789 N/A N/A
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from share transactions (18,616,303) 601,765,791 (1,015,962) (1,815,734)
- ---------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets (50,386,341) 643,782,458 (2,597,913) 1,029,900
Net assets at beginning of period 702,412,489 58,630,031 37,304,819 36,274,919
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $652,026,148 $ 702,412,489 $34,706,906 $37,304,819
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 36,680 $ 601,989 $ 1,246 $ 119,365
- ---------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of these
statements.
- --------------------------------------------------------------------------------
52 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELIGMAN SELIGMAN
CALIFORNIA MUNICIPAL QUALITY FUND MINNESOTA MUNICIPAL FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009 MARCH 31, 2010 SEPT. 30, 2009
(UNAUDITED) (UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 814,893 $ 1,465,511 $ 1,345,146 $ 2,067,990
Net realized gain (loss) on
investments 45,914 445,315 841,787 598,926
Net change in unrealized appreciation
(depreciation) on investments (1,195,203) 3,370,334 (2,073,325) 4,558,427
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (334,396) 5,281,160 113,608 7,225,343
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (1,048,471) (1,288,969) (1,412,754) (2,239,614)
Class C (82,252) (91,117) (23,388) (21,873)
Net realized gain
Class A (271,973) (136,084) (795,681) (78,863)
Class C (24,518) (14,299) (15,898) (676)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (1,427,214) (1,530,469) (2,247,721) (2,341,026)
- ---------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class A shares 2,532,270 10,660,189 1,293,353 8,249,458
Class C shares 223,585 2,104,035 214,443 961,391
Reinvestment of distributions at net
asset value
Class A shares 870,991 959,148 1,586,263 1,579,523
Class C shares 17,637 60,280 26,437 14,841
Payments for redemptions
Class A shares (5,253,171) (8,857,523) (7,343,332) (8,255,188)
Class C shares (205,581) (1,837,796) (334,861) (187,030)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from share transactions (1,814,269) 3,088,333 (4,557,697) 2,362,995
- ---------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets (3,575,879) 6,839,024 (6,691,810) 7,247,312
Net assets at beginning of period 43,834,017 36,994,993 72,654,457 65,407,145
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $40,258,138 $43,834,017 $65,962,647 $72,654,457
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 835 $ 316,665 $ 9,564 $ 100,560
- ---------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of these
statements.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 53
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
SELIGMAN
NEW YORK MUNICIPAL FUND
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,654,026 $ 2,633,529
Net realized gain (loss) on investments 469,269 730,889
Net change in unrealized appreciation (depreciation) on
investments (2,103,668) 5,945,470
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 19,627 9,309,888
- -----------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (1,711,103) (2,427,660)
Class C (159,984) (182,412)
Net realized gain
Class A (786,601) --
Class C (88,427) --
- -----------------------------------------------------------------------------------------------------
Total distributions (2,746,115) (2,610,072)
- -----------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Proceeds from sales
Class A shares 3,489,680 22,642,685
Class C shares 1,036,064 3,368,290
Reinvestment of distributions at net asset value
Class A shares 1,839,850 1,747,802
Class C shares 138,912 91,806
Payments for redemptions
Class A shares (5,270,254) (11,468,114)
Class C shares (472,025) (831,554)
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from share transactions 762,227 15,550,915
- -----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,964,261) 22,250,731
Net assets at beginning of period 85,140,014 62,889,283
- -----------------------------------------------------------------------------------------------------
Net assets at end of period $83,175,753 $ 85,140,014
- -----------------------------------------------------------------------------------------------------
Undistributed net investment income $ 108 $ 217,169
- -----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of these
statements.
- --------------------------------------------------------------------------------
54 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
The following tables are intended to help you understand the 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
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS A MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $8.12 $7.31 $7.74 $7.81 $7.88 $7.97
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .20 .29 .33 .35 .34
Net gains (losses) (both realized and
unrealized) (.20) .86 (.44) (.08) (.07) (.09)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.04) 1.06 (.15) .25 .28 .25
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16) (.28) (.28) (.32) (.35) (.34)
Distributions from realized gains (.17) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.33) (.28) (.28) (.32) (.35) (.34)
- ----------------------------------------------------------------------------------------------------------------------------
Redemption fees (Note 5 to Financial
Statements) .00(a) .03(b) -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.75 $8.12 $7.31 $7.74 $7.81 $7.88
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.38%) 15.19% (2.07%) 3.21% 3.58% 3.18%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(C)
Gross expenses prior to expense
waiver/reimbursement .79%(d) 1.09% .95% .90% .92% .94%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) .79%(d) .95% .95% .90% .92% .94%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.13%(d) 2.57% 3.77% 4.19% 4.46% 4.29%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $617 $666 $56 $58 $66 $68
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 15% 107% 16% 29% --% 5%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Highlights.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 55
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
Seligman National Municipal Fund (continued)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS C MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $8.15 $7.31 $7.75 $7.81 $7.88 $7.97
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13 .14 .22 .26 .28 .27
Net gains (losses) (both realized and
unrealized) (.20) .92 (.45) (.07) (.07) (.09)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.07) 1.06 (.23) .19 .21 .18
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13) (.22) (.21) (.25) (.28) (.27)
Distributions from realized gains (.17) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.30) (.22) (.21) (.25) (.28) (.27)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.78 $8.15 $7.31 $7.75 $7.81 $7.88
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.75%) 14.62% (3.07%) 2.42% 2.66% 2.25%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(C)
Gross expenses prior to expense
waiver/reimbursement 1.54%(d) 1.86% 1.85% 1.80% 1.82% 1.84%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e) 1.54%(d) 1.71% 1.85% 1.80% 1.82% 1.84%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.39%(d) 1.81% 2.87% 3.29% 3.56% 3.39%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $35 $37 $2 $2 $2 $3
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 15% 107% 16% 29% --% 5%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) Rounds to zero.
(b) Per share amount is calculated based on average shares outstanding during
the period.
(c) 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.
(d) Annualized.
(e) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
56 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman California Municipal High-Yield Fund
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS A MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $6.69 $6.18 $6.55 $6.60 $6.62 $6.65
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .14 .26 .27 .28 .28 .26
Net gains (losses) (both realized and
unrealized) (.19) .51 (.36) (.06) (.02) .04
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.05) .77 (.09) .22 .26 .30
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16) (.26) (.27) (.27) (.28) (.26)
Distributions from realized gains (.08) -- (.01) -- -- (.07)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.24) (.26) (.28) (.27) (.28) (.33)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.40 $6.69 $6.18 $6.55 $6.60 $6.62
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.57%) 12.73% (1.51%) 3.35% 3.99% 4.63%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .98%(b) 1.27% 1.02% .95% 1.00% 1.02%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .79%(b) 1.04% .92% .85% .90% .92%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.47%(b) 4.16% 4.14% 4.25% 4.26% 3.97%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $29 $31 $31 $29 $30 $31
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 63% 4% 8% --% 1%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS C MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $6.70 $6.18 $6.56 $6.61 $6.63 $6.66
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .12 .20 .21 .22 .22 .20
Net gains (losses) (both realized and
unrealized) (.19) .53 (.37) (.06) (.02) .04
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.07) .73 (.16) .16 .20 .24
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.14) (.21) (.21) (.21) (.22) (.20)
Distributions from realized gains (.08) -- (.01) -- -- (.07)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.22) (.21) (.22) (.21) (.22) (.27)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.41 $6.70 $6.18 $6.56 $6.61 $6.63
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.93%) 11.94% (2.54%) 2.42% 3.06% 3.69%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.72%(b) 2.13% 1.92% 1.85% 1.90% 1.92%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.54%(b) 1.89% 1.82% 1.75% 1.80% 1.82%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.71%(b) 3.30% 3.24% 3.35% 3.35% 3.07%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $6 $6 $5 $2 $3 $2
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 63% 4% 8% --% 1%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(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 have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 57
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
Seligman California Municipal Quality Fund
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS A MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $6.69 $6.13 $6.57 $6.69 $6.79 $6.89
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .05 .23 .26 .28 .28 .28
Net gains (losses) (both realized and
unrealized) (.09) .58 (.40) (.12) (.07) (.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.04) .81 (.14) .16 .21 .26
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.18) (.23) (.25) (.27) (.28) (.27)
Distributions from realized gains (.05) (.02) (.05) (.01) (.03) (.09)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.23) (.25) (.30) (.28) (.31) (.36)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.42 $6.69 $6.13 $6.57 $6.69 $6.79
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.59%) 13.42% (2.26%) 2.51% 3.14% 3.90%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .97%(b) 1.24% .99% .92% .94% .94%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .79%(b) 1.09% .99% .92% .94% .94%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.04%(b) 3.67% 3.97% 4.17% 4.19% 4.04%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $37 $40 $34 $38 $42 $47
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 46% 13% 5% --% --%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS C MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $6.66 $6.10 $6.54 $6.66 $6.76 $6.87
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04 .17 .20 .22 .22 .21
Net gains (losses) (both realized and
unrealized) (.11) .58 (.40) (.12) (.07) (.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.07) .75 (.20) .10 .15 .19
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.15) (.17) (.19) (.21) (.22) (.21)
Distributions from realized gains (.05) (.02) (.05) (.01) (.03) (.09)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.20) (.19) (.24) (.22) (.25) (.30)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.39 $6.66 $6.10 $6.54 $6.66 $6.76
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.98%) 12.52% (3.15%) 1.60% 2.23% 2.84%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.72%(b) 2.10% 1.89% 1.82% 1.84% 1.84%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.54%(b) 1.96% 1.89% 1.82% 1.84% 1.84%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.28%(b) 2.80% 3.07% 3.27% 3.29% 3.13%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3 $4 $3 $2 $2 $3
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 46% 13% 5% --% --%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(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 have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
58 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Seligman Minnesota Municipal Fund
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS A MARCH 31, 2010 --------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $7.79 $7.26 $7.55 $7.67 $7.75 $7.83
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .15 .23 .27 .30 .31 .31
Net gains (losses) (both realized and
unrealized) (.13) .56 (.26) (.11) (.08) (.09)
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations .02 .79 .01 .19 .23 .22
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.16) (.25) (.26) (.30) (.30) (.30)
Distributions from realized gains (.09) (.01) (.04) (.01) (.01) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (.25) (.26) (.30) (.31) (.31) (.30)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.56 $7.79 $7.26 $7.55 $7.67 $7.75
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .32% 11.04% .07% 2.52% 3.04% 2.90%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement .92%(b) 1.14% .91% .88% .89% .92%
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) .79%(b) 1.06% .91% .88% .89% .92%
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.96%(b) 3.02% 3.62% 4.01% 4.04% 3.96%
- ---------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $65 $71 $65 $71 $78 $85
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 29% 16% 4% 11% 8%
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS C MARCH 31, 2010 --------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $7.81 $7.27 $7.56 $7.68 $7.75 $7.83
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .12 .16 .20 .24 .24 .24
Net gains (losses) (both realized and
unrealized) (.14) .58 (.26) (.12) (.07) (.09)
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.02) .74 (.06) .12 .17 .15
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13) (.19) (.19) (.23) (.23) (.23)
Distributions from realized gains (.09) (.01) (.04) (.01) (.01) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (.22) (.20) (.23) (.24) (.24) (.23)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.57 $7.81 $7.27 $7.56 $7.68 $7.75
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.18%) 10.22% (.83%) 1.59% 2.16% 1.95%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(a)
Gross expenses prior to expense
waiver/reimbursement 1.67%(b) 1.98% 1.81% 1.78% 1.79% 1.82%
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(c) 1.54%(b) 1.86% 1.81% 1.78% 1.79% 1.82%
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.20%(b) 2.19% 2.72% 3.11% 3.14% 3.06%
- ---------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1 $1 $1 $-- $-- $--
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 29% 16% 4% 11% 8%
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(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 have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 59
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
Seligman New York Municipal Fund
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS A MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $8.32 $7.63 $8.07 $8.19 $8.26 $8.27
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .16 .28 .32 .34 .35 .33
Net gains (losses) (both realized and
unrealized) (.15) .70 (.40) (.12) (.06) (.01)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .01 .98 (.08) .22 .29 .32
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.18) (.29) (.32) (.34) (.34) (.33)
Distributions from realized gains (.09) -- (.04) (.00)(a) (.02) (.00)(a)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.27) (.29) (.36) (.34) (.36) (.33)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.06 $8.32 $7.63 $8.07 $8.19 $8.26
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .18% 13.02% (1.19%) 2.76% 3.61% 3.96%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement .89%(c) 1.11% .89% .85% .88% .90%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) .79%(c) 1.04% .89% .85% .88% .90%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.06%(c) 3.60% 4.04% 4.22% 4.25% 4.03%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $75 $77 $58 $61 $64 $70
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 53% 0% 16% --% 10%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPT. 30,
CLASS C MARCH 31, 2010 ---------------------------------------------------
PER SHARE DATA (UNAUDITED) 2009 2008 2007 2006 2005
Net asset value, beginning of period $8.34 $7.64 $8.08 $8.20 $8.27 $8.29
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13 .22 .25 .27 .27 .26
Net gains (losses) (both realized and
unrealized) (.16) .70 (.41) (.13) (.05) (.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.03) .92 (.16) .14 .22 .24
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.15) (.22) (.24) (.26) (.27) (.26)
Distributions from realized gains (.09) -- (.04) (.00)(a) (.02) (.00)(a)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (.24) (.22) (.28) (.26) (.29) (.26)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.07 $8.34 $7.64 $8.08 $8.20 $8.27
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (.32%) 12.19% (2.07%) 1.83% 2.68% 2.91%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(b)
Gross expenses prior to expense
waiver/reimbursement 1.64%(c) 1.96% 1.79% 1.75% 1.78% 1.80%
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d) 1.54%(c) 1.88% 1.79% 1.75% 1.78% 1.80%
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.31%(c) 2.73% 3.14% 3.32% 3.35% 3.13%
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (in millions) $9 $8 $5 $4 $5 $5
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 53% 0% 16% --% 10%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
NOTES TO FINANCIAL HIGHLIGHTS
(a) A capital gain of $0.003 and $0.002 was paid for the years ended Sept. 30,
2007 and 2005, respectively.
(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 have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
60 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS OF MARCH 31, 2010)
1. ORGANIZATION
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). 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 normally invests at least 80% of its net assets in municipal
securities that pay interest that is exempt from regular federal income taxes
and (except National) regular personal income taxes in its respective state.
Income may be subject to the federal alternative minimum tax and, where
applicable, state alternative minimum tax. Capital gain distributions are
subject to federal, state and local taxes.
Each Fund offers Class A and Class C shares.
- - Class A shares are offered with a front-end sales charge, which may be waived
under certain circumstances.
- - Class C shares may be subject to a contingent deferred sales charge (CDSC).
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. Other expenses on the Statements of Operations include adjustments as a
result of a change in estimated expenses for the six months ended March 31,
2010.
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 procedures adopted by each Fund's Board
of Directors/Trustees (the Board) generally contemplate 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.
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
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 61
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
securities. Each Fund designates cash or liquid securities at least equal to the
amount of its forward-commitments. At March 31, 2010, outstanding when-issued
securities were as follow:
<Table>
<Caption>
FUND AMOUNT
- -----------------------------------------------------------------------------------------
National $9,409,653
California High-Yield 171,094
Minnesota 1,314,764
New York 391,072
</Table>
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.
RECENT ACCOUNTING PRONOUNCEMENT
On Jan. 21, 2010, the Financial Accounting Standards Board issued an Accounting
Standards Update (the amendment), Fair Value Measurements and Disclosures (Topic
820): Improving Disclosures about Fair Value Measurements, which provides
guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
the input and valuation techniques used to measure fair value for both recurring
and non-recurring fair value measurements for Level 2 or Level 3 positions. The
amendment also requires that transfers between all levels (including Level 1 and
Level 2) be disclosed on a gross basis (i.e., transfers out must be disclosed
separately from transfers in), and the reason(s) for the transfer. Additionally
purchases, sales, issuances and settlements must be disclosed on a gross basis
in the Level 3 rollforward. The effective date of the amendment is for interim
and annual periods beginning after Dec. 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
Dec. 15, 2010. At this time the Fund is evaluating the implications of the
amendment and the impact to the financial statements.
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 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. EXPENSES AND SALES CHARGES
INVESTMENT MANAGEMENT SERVICES FEES
Under an Investment Management Services Agreement, RiverSource Investments, 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, 2010 was 0.41% of each
Fund's average daily net assets.
* Effective May 1, 2010, RiverSource Investments, LLC is known as Columbia
Management Investment Advisers, LLC.
- --------------------------------------------------------------------------------
62 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, each Fund pays Ameriprise Financial,
Inc., parent company of the Investment Manager, a 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, 2010 was 0.07% of each Fund's average
daily net assets.
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, 2010, other expenses paid to this company were as follows:
<Table>
<Caption>
FUND AMOUNT
- ---------------------------------------------------------------------------------------
National $2,993
California High-Yield 159
California Quality 186
Minnesota 310
New York 365
</Table>
COMPENSATION OF BOARD MEMBERS
Under a Deferred Compensation Plan (the Plan), the board members who are not
"interested persons" of each Fund 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 other RiverSource, Seligman and
Threadneedle funds. 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, RiverSource Service Corporation* (the
Transfer Agent) maintains Fund shareholder accounts and records and provides
Fund shareholder services. Each Fund pays the Transfer Agent an annual account-
based fee at a rate equal to $20.50 for Class A and $21.00 for Class C for this
service. The Transfer Agent also charges an annual fee of $3 per account
serviced directly by each Fund or its designated agent for Class A and Class C
shares. The Transfer Agent charges an annual fee of $5 per inactive account,
charged on a pro rata basis for the 12 month period from the date the account
becomes inactive. These fees are included in the transfer agency fees in the
Statements of Operations.
Each Fund together with 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), the former transfer agent, including the payment of rent by
SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At March
31, 2010, each Fund's total potential future obligation over the life of the
Guaranty is as follows:
<Table>
<Caption>
FUND AMOUNT
- ----------------------------------------------------------------------------------------
National $976,290
California High-Yield 48,490
California Quality 57,913
Minnesota 96,339
New York 113,173
</Table>
The liability remaining is included within accrued transfer agency fees in the
Statements of Assets and Liabilities. At March 31, 2010, these amounts are as
follows:
<Table>
<Caption>
FUND AMOUNT
- ----------------------------------------------------------------------------------------
National $512,742**
California High-Yield 25,452
California Quality 30,421
Minnesota 50,586
New York 59,435
</Table>
* Effective May 1, 2010, RiverSource Service Corporation is known as Columbia
Management Investment Services Corp.
** In connection with the fund mergers as described in Note 9, National assumed
the obligations of the funds which were acquired.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 63
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
DISTRIBUTION FEES
Each Fund has an agreement with RiverSource Fund Distributors, Inc.* (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution pursuant to Rule 12b-1, each Fund pays 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:
<Table>
<Caption>
FUND CLASS C
- ----------------------------------------------------------------------------------------
National $401,000
California High-Yield 204,000
California Quality 243,000
Minnesota 92,000
New York 268,000
</Table>
These amounts are based on the most recent information available as of Jan. 31,
2010, 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.
* Effective May 1, 2010, RiverSource Fund Distributors, Inc. is known as
Columbia Management Investment Distributors, Inc.
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, 2010 are as
follows:
<Table>
<Caption>
FUND CLASS A CLASS C
- -------------------------------------------------------------------------------------------
National $186,855 $5,406
California High-Yield 2,777 885
California Quality 9,339 264
Minnesota 16,257 471
New York 21,547 110
</Table>
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended March 31, 2010, 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**), were as follows:
<Table>
<Caption>
CLASS PERCENTAGE
- -----------------------------------------------------------------------------------------
Class A 0.79%
Class C 1.54
</Table>
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
<Caption>
FUND CLASS A CLASS C
- -------------------------------------------------------------------------------------------
National $2,435 $396
California High-Yield 1,771 390
California Quality 2,295 229
Minnesota 4,371 103
New York 2,523 331
</Table>
The management fees waived/reimbursed at the Fund level were as follows:
<Table>
<Caption>
FUND AMOUNT
- ---------------------------------------------------------------------------------------
California High-Yield $30,448
California Quality 34,244
Minnesota 38,235
New York 39,776
</Table>
- --------------------------------------------------------------------------------
64 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and expenses until Nov. 30, 2010, unless sooner terminated at the
sole discretion of the Board, such that net expenses (excluding fees and
expenses of acquired funds**), will not exceed the following percentage of each
Fund's class' average daily net assets:
<Table>
<Caption>
CLASS PERCENTAGE
- -----------------------------------------------------------------------------------------
Class A 0.79%
Class C 1.54
</Table>
** 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.
4. SECURITIES TRANSACTIONS
For the six months ended March 31, 2010, cost of purchases and proceeds from
sales of securities (other than short-term obligations) aggregated for each Fund
were as follows:
<Table>
<Caption>
FUND PURCHASES PROCEEDS
- ----------------------------------------------------------------------------------------------
National $98,150,342 $118,959,497
California High-Yield 3,773,330 3,722,121
California Quality 3,885,606 6,343,414
Minnesota 11,595,313 16,339,953
New York 8,523,431 8,508,255
</Table>
Realized gains and losses are determined on an identified cost basis.
5. REDEMPTION FEES
Class A shares issued by Seligman National Fund to former stockholders of
Seligman Select Municipal Fund in connection with the fund merger (see Note 9)
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
Seligman National Fund and is recorded as additional paid-in capital.
6. SHARE TRANSACTIONS
Transactions in shares for each Fund for the periods indicated were as follows:
<Table>
<Caption>
NATIONAL CALIFORNIA HIGH-YIELD
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009 MARCH 31, 2010 SEPT. 30, 2009
- -------------------------------------------------------------------------------------------------------------------
CLASS A
Sold 2,233,375 6,001,981 105,706 470,216
Fund merger N/A 82,654,273 N/A N/A
Reinvested distributions 2,340,048 668,709 112,420 129,987
Redeemed (6,900,146) (15,015,369) (380,874) (945,232)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (2,326,723) 74,309,594 (162,748) (345,029)
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 269,665 618,059 44,899 169,001
Fund merger N/A 3,875,447 N/A N/A
Reinvested distributions 116,098 25,017 20,158 19,017
Redeemed (429,642) (323,416) (57,821) (141,925)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (43,879) 4,195,107 7,236 46,093
- -------------------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 65
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
<Table>
<Caption>
CALIFORNIA QUALITY MINNESOTA
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009 MARCH 31, 2010 SEPT. 30, 2009
- -------------------------------------------------------------------------------------------------------------------
CLASS A
Sold 391,965 1,725,823 170,254 1,106,231
Reinvested distributions 135,155 154,467 209,161 212,517
Redeemed (809,675) (1,424,314) (962,573) (1,109,881)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (282,555) 455,976 (583,158) 208,867
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 34,944 341,722 28,147 449,044
Reinvested distributions 2,750 9,837 3,478 1,984
Redeemed (31,872) (294,718) (43,928) (346,032)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 5,822 56,841 (12,303) 104,996
- -------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NEW YORK
--------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPT. 30, 2009
- ----------------------------------------------------------------------------------------------------
CLASS A
Sold 430,425 2,890,575
Reinvested distributions 227,496 222,566
Redeemed (648,563) (1,463,530)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) 9,358 1,649,611
- ----------------------------------------------------------------------------------------------------
CLASS C
Sold 127,500 428,298
Reinvested distributions 17,141 11,650
Redeemed (58,098) (105,324)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) 86,543 334,624
- ----------------------------------------------------------------------------------------------------
</Table>
7. BANK BORROWINGS
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 agreement, which is a
collective agreement between each Fund and certain other RiverSource, Seligman
and Threadneedle funds, severally and not jointly, permits collective borrowings
up to $300 million. The borrowers shall have 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 shall at no time exceed $500
million. Participation in such increase by any existing lender shall be at such
lender's sole discretion. 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, in addition to 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, 2010.
8. FEDERAL TAX INFORMATION
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of 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 (losses) were recorded by the Funds.
As a result of the fund mergers (see Note 9) National acquired a capital loss
carry-over of $2,099,958 which is limited by the Internal Revenue Code Section
382.
- --------------------------------------------------------------------------------
66 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
9. FUND MERGERS
At the close of business on March 27, 2009, National acquired the assets and
assumed the identified liabilities of Seligman Select Municipal Fund, Inc.
(Select Municipal). The reorganization was completed after stockholders approved
the plan on Feb. 5, 2009.
The aggregate net assets of National immediately before the acquisition were
$80,713,171 and the combined net assets immediately after the acquisition were
$218,815,535.
The merger was accomplished by a tax-free exchange of 13,290,689 shares of
Select Municipal valued at $138,102,364. In exchange for the Select Municipal
shares and net assets, National issued 18,687,716 Class A shares.
The components of Select Municipal's net assets after adjustments for any
permanent book-to-tax differences at the merger date were as follows:
<Table>
<Caption>
NET UNREALIZED
APPRECIATION ACCUMULATED UNDISTRIBUTED NET
TOTAL CAPITAL (DEPRECIATION) ON NET REALIZED INVESTMENT
NET ASSETS STOCK INVESTMENTS GAIN (LOSS) INCOME
- ----------------------------------------------------------------------------------------------------------------------
Select Municipal $138,102,364 $144,194,042 $(5,053,026) $(2,043,036) $1,004,384
</Table>
At the close of business on July 10, 2009, National acquired the assets and
assumed the identified liabilities of the following funds: Seligman Colorado
Municipal Class (Seligman Colorado Municipal Fund), Seligman Georgia Municipal
Class (Seligman Georgia Municipal Fund), Seligman Louisiana Municipal Class
(Seligman Louisiana Municipal Fund), Seligman Maryland Municipal Class (Seligman
Maryland Municipal Fund), Seligman Massachusetts Municipal Class (Seligman
Massachusetts Municipal Fund), Seligman Michigan Municipal Class (Seligman
Michigan Municipal Fund), Seligman Missouri Municipal Class (Seligman Missouri
Municipal Fund), Seligman Ohio Municipal Class (Seligman Ohio Municipal Fund),
Seligman Oregon Municipal Class (Seligman Oregon Municipal Fund), Seligman South
Carolina Municipal Class (Seligman South Carolina Municipal Fund), each a series
of Seligman Municipal Fund Series, Inc.; Seligman Florida Municipal Series
(Seligman Florida Municipal Fund) and Seligman North Carolina Municipal Series
(Seligman North Carolina Municipal Fund), each a series of Seligman Municipal
Series Trust; Seligman New Jersey Municipal Fund, Inc. (Seligman New Jersey
Municipal Fund); and Seligman Pennsylvania Municipal Fund Series (Seligman
Pennsylvania Municipal Fund). The reorganizations were completed after
shareholders of each fund approved the plan on June 2, 2009.
The aggregate net assets of National immediately before these acquisitions were
$186,000,943 and the combined net assets immediately after the acquisitions were
$710,433,316.
The mergers were accomplished by the following tax-free exchanges:
<Table>
<Caption>
SHARES VALUE OF SHARES SHARES ISSUED BY
EXCHANGED EXCHANGED NATIONAL
- ---------------------------------------------------------------------------------------------------------
Seligman Colorado Municipal Fund
Class A 4,107,991 $30,581,832 3,957,024
Class C 166,567 1,237,719 159,402
- ---------------------------------------------------------------------------------------------------------
Seligman Florida Municipal Fund
Class A 2,495,683 18,292,947 2,367,153
Class C 339,424 2,495,635 321,415
- ---------------------------------------------------------------------------------------------------------
Seligman Georgia Municipal Fund
Class A 3,076,141 22,650,408 2,930,853
Class C 141,760 1,047,379 134,877
- ---------------------------------------------------------------------------------------------------------
Seligman Louisiana Municipal Fund
Class A 3,120,284 23,528,742 3,044,780
Class C 236,947 1,785,809 229,989
- ---------------------------------------------------------------------------------------------------------
Seligman Maryland Municipal Fund
Class A 4,219,413 33,396,957 4,321,513
Class C 313,152 2,482,608 319,726
- ---------------------------------------------------------------------------------------------------------
Seligman Massachusetts Municipal Fund
Class A 7,216,167 55,985,242 7,244,180
Class C 442,182 3,432,933 442,125
- ---------------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 67
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
<Table>
<Caption>
SHARES VALUE OF SHARES SHARES ISSUED BY
EXCHANGED EXCHANGED NATIONAL
- ---------------------------------------------------------------------------------------------------------
Seligman Michigan Municipal Fund
Class A 7,967,137 $62,918,566 8,141,366
Class C 272,237 2,147,274 276,550
- ---------------------------------------------------------------------------------------------------------
Seligman Missouri Municipal Fund
Class A 3,324,463 24,831,482 3,213,046
Class C 115,556 863,300 111,181
- ---------------------------------------------------------------------------------------------------------
Seligman New Jersey Municipal Fund
Class A 3,220,292 22,646,008 2,930,266
Class C 363,298 2,597,493 334,524
- ---------------------------------------------------------------------------------------------------------
Seligman North Carolina Municipal Fund
Class A 1,650,725 12,818,567 1,658,628
Class C 258,757 2,009,401 258,790
- ---------------------------------------------------------------------------------------------------------
Seligman Ohio Municipal Fund
Class A 10,564,417 82,580,796 10,686,083
Class C 190,994 1,502,684 193,528
- ---------------------------------------------------------------------------------------------------------
Seligman Oregon Municipal Fund
Class A 4,953,087 37,366,614 4,835,156
Class C 347,202 2,616,055 336,918
- ---------------------------------------------------------------------------------------------------------
Seligman Pennsylvania Municipal Fund
Class A 1,630,858 12,405,665 1,605,323
Class C 137,507 1,044,524 134,514
- ---------------------------------------------------------------------------------------------------------
Seligman South Carolina Municipal Fund
Class A 6,968,963 54,356,879 7,031,186
Class C 619,594 4,828,854 621,908
- ---------------------------------------------------------------------------------------------------------
</Table>
The components of net assets for each of the acquired funds (after adjustments
for any permanent book-to-tax differences) at the merger date were as follows:
<Table>
<Caption>
NET UNREALIZED
APPRECIATION ACCUMULATED UNDISTRIBUTED NET
TOTAL CAPITAL (DEPRECIATION) ON NET REALIZED INVESTMENT
NET ASSETS STOCK INVESTMENTS GAIN (LOSS) INCOME
- ----------------------------------------------------------------------------------------------------------------------
Seligman Colorado Municipal Fund $ 31,819,551 $ 30,313,233 $ 1,347,167 $ 1 $ 159,150
Seligman Florida Municipal Fund 20,788,582 20,601,686 181,798 (74,724) 79,822
Seligman Georgia Municipal Fund 23,697,787 24,219,528 36,139 (651,949) 94,069
Seligman Louisiana Municipal Fund 25,314,551 25,277,775 (71,348) 1 108,123
Seligman Maryland Municipal Fund 35,879,565 34,150,803 1,600,668 -- 128,094
Seligman Massachusetts Municipal Fund 59,418,175 55,919,899 3,266,186 3 232,087
Seligman Michigan Municipal Fund 65,065,840 64,437,930 912,343 (696,733) 412,300
Seligman Missouri Municipal Fund 25,694,782 24,680,323 850,692 (2) 163,769
Seligman New Jersey Municipal Fund 25,243,501 24,704,583 444,542 -- 94,376
Seligman North Carolina Municipal Fund 14,827,968 13,860,454 894,286 -- 73,228
Seligman Ohio Municipal Fund 84,083,480 80,375,799 3,338,349 (2) 369,334
Seligman Oregon Municipal Fund 39,982,669 38,796,204 991,431 -- 195,034
Seligman Pennsylvania Municipal Fund 13,450,189 12,562,528 816,236 -- 71,425
Seligman South Carolina Municipal Fund 59,165,733 57,894,002 1,038,372 -- 233,359
- ----------------------------------------------------------------------------------------------------------------------
Total $524,432,373 $507,794,747 $15,646,861 $(1,423,405) $2,414,170
- ----------------------------------------------------------------------------------------------------------------------
</Table>
10. 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.
- --------------------------------------------------------------------------------
68 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 and economic
conditions and developments 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.
11. SUBSEQUENT EVENTS
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.
12. 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
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.
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
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 RiverSource Funds' Boards of
Directors/Trustees.
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In
late 2003, Seligman conducted an extensive internal review concerning mutual
fund trading practices. Seligman's review, which covered the period 2001-2003,
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies managed by Seligman (the Seligman Funds); this
arrangement was in the process of being closed down by Seligman before September
2003. Seligman identified three other arrangements that permitted frequent
trading, all of which had been terminated by September 2002. In January 2004,
Seligman, on a voluntary basis, publicly disclosed these four arrangements to
its clients and to shareholders of the Seligman Funds. Seligman also provided
information concerning mutual fund trading practices to the SEC and the Office
of the Attorney General of the State of New York (NYAG).
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 69
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc. (now known as RiverSource Fund
Distributors, Inc.), Seligman Data Corp. and Brian T. Zino (collectively, the
Seligman Parties), alleging, in substance, that the Seligman Parties permitted
various persons to engage in frequent trading and, as a result, the prospectus
disclosure used by the registered investment companies then managed by Seligman
was and had been misleading. The NYAG included other related claims and also
claimed that the fees charged by Seligman to the Seligman Funds were excessive.
On March 13, 2009, without admitting or denying any violations of law or
wrongdoing, the Seligman Parties entered into a stipulation of settlement with
the NYAG and settled the claims made by the NYAG. Under the terms of the
settlement, Seligman paid $11.3 million to four Seligman Funds. This settlement
resolved all outstanding matters between the Seligman Parties and the NYAG. In
addition to the foregoing matter, the New York staff of the SEC indicated in
September 2005 that it was considering recommending to the Commissioners of the
SEC the instituting of a formal action against Seligman and Seligman Advisors,
Inc. relating to frequent trading in the Seligman Funds. Seligman responded to
the staff in October 2005 that it believed that any action would be both
inappropriate and unnecessary, especially in light of the fact that Seligman had
previously resolved the underlying issue with the Independent Directors of the
Seligman Funds and made recompense to the affected Seligman Funds. There have
been no further developments with the SEC on this matter.
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.
- --------------------------------------------------------------------------------
70 SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT
PROXY VOTING -------------------------------------------------------------------
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 800.221.2450; contacting your financial intermediary; visiting
seligman.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 seligman.com; or searching the website of the SEC at
www.sec.gov.
- --------------------------------------------------------------------------------
SELIGMAN MUNICIPAL FUNDS -- 2010 SEMIANNUAL REPORT 71
(SELIGMAN LOGO)
SELIGMAN MUNICIPAL FUNDS
734 Ameriprise Financial Center
Minneapolis, MN 55474
SELIGMAN.COM
This report must be accompanied or preceded by the Funds'
current prospectus. Seligman(R) mutual funds are
distributed by Columbia Management Investment
Distributors, Inc. (formerly known as RiverSource Fund
Distributors, Inc.), member FINRA and managed by Columbia
Management Investment Advisers, LLC (formerly known as
RiverSource Investments, LLC). Seligman is an offering
brand of Columbia Management Investment Advisers, LLC.
(C)2010 Columbia Management Investment Advisers, LLC. All rights reserved.
SL-9956 A (5/10)
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.
Item 6. Investments.
(a) The complete schedule of investments 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. Purchase 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. Not applicable.
Item 11. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this Form N-CSR,
the registrant's Principal Financial Officer and Principal Executive Officer
have concluded that those disclosure controls and procedures provide reasonable
assurance that the material information required to be disclosed by the
registrant on this report is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for semi-annual reports.
(a)(2) Separate certification for the Registrant's principal executive officer
and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of
1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached
as EX.99.906 CERT.
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 June 2, 2010
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 June 2, 2010
By /s/ Jeffrey P. Fox
----------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial
Officer
Date June 2, 2010